Document:

FIFTH
AVENUE BUILDING COMPANY LLC

    

    Landlord,             

    

    JESUP
& LAMONT, INC.

    

    Tenant.             

     

    
      
 

    
      

    

    

    LEASE

     

    
      
  

    
      
        	
                Premises:     

              	
                Part
      of the 17th
      Floor

              
	 
      	
                623
      Fifth Avenue

              
	 
      	
                New
      York, New York

              

      

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    TABLE
OF CONTENTS

    

    
      
        	
                ARTICLE

              	 
      	
                PAGE

              
	 
      	 
      	 
      	 
      	 
      
	
                1.

              	
                Premises;
      Term

              	 
      	
                1

              	 
      
	
                2.

              	
                Commencement
      of Term

              	 
      	
                1

              	 
      
	
                3.

              	
                Rent

              	 
      	
                2

              	 
      
	
                4.

              	
                Use

              	 
      	
                3

              	 
      
	
                5.

              	
                Alterations,
      Fixtures

              	 
      	
                5

              	 
      
	
                6.

              	
                Repairs

              	 
      	
                8

              	 
      
	
                7.

              	
                Floor
      Load; Noise

              	 
      	
                9

              	 
      
	
                8.

              	
                Laws,
      Ordinances, Requirements of Public Authorities

              	 
      	
                10

              	 
      
	
                9.

              	
                Insurance

              	 
      	
                11

              	 
      
	
                10.

              	
                Damage
      by Fire or Other Cause

              	 
      	
                14

              	 
      
	
                11.

              	
                Assignment,
      Subletting, Mortgaging

              	 
      	
                15

              	 
      
	
                12.

              	
                Liability
      of Landlord and Indemnity by Tenant

              	 
      	
                20

              	 
      
	
                13.

              	
                Moving
      of Heavy Equipment

              	 
      	
                22

              	 
      
	
                14.

              	
                Condemnation

              	 
      	
                22

              	 
      
	
                15.

              	
                Entry,
      Right to Change Public Portions of the Building

              	 
      	
                23

              	 
      
	
                16.

              	
                Conditional
      Limitations, Etc.

              	 
      	
                24

              	 
      
	
                17.

              	
                Mechanic's
      Liens

              	 
      	
                28

              	 
      
	
                18.

              	
                Landlord's
      Right to Perform Tenant's Obligations

              	 
      	
                29

              	 
      
	
                19.

              	
                Covenant
      of Quiet Enjoyment

              	 
      	
                29

              	 
      
	
                20.

              	
                Excavation

              	 
      	
                29

              	 
      
	
                21.

              	
                Services
      and Equipment

              	 
      	
                30

              	 
      
	
                22.

              	
                Escalation

              	 
      	
                33

              	 
      
	
                23.

              	
                Electricity

              	 
      	
                39

              	 
      
	
                24.

              	
                Broker

              	 
      	
                41

              	 
      
	
                25.

              	
                Subordination
      and Ground Lease

              	 
      	
                42

              	 
      
	
                26.

              	
                Estoppel
      Certificate

              	 
      	
                44

              	 
      
	
                27.

              	
                Waiver
      of Jury Trial

              	 
      	
                45

              	 
      
	
                28.

              	
                Surrender
      of Premises

              	 
      	
                45

              	 
      
	
                29.

              	
                Rules
      and Regulations

              	 
      	
                46

              	 
      
	
                30.

              	
                Successors
      and Assigns and Definitions

              	 
      	
                46

              	 
      
	
                31.

              	
                Notices

              	 
      	
                47

              	 
      
	
                32.

              	
                No
      Waiver; Entire Agreement

              	 
      	
                48

              	 
      
	
                33.

              	
                Captions

              	 
      	
                50

              	 
      
	
                34.

              	
                Inability
      to Perform

              	 
      	
                50

              	 
      
	
                35.

              	
                No
      Representations by Landlord

              	 
      	
                51

              	 
      
	
                36.

              	
                Security
      Deposit

              	 
      	
                51

              	 
      
	
                37.

              	
                Late
      Payment Charge

              	 
      	
                52

              	 
      
	
                38.

              	
                Rent
      Control

              	 
      	
                53

              	 
      
	
                39.

              	
                Confidentiality

              	 
      	
                53

              	 
      
	
                40.

              	
                Landlord's
      Contribution

              	 
      	
                54

              	 
      

      

    

     

    
      
         

      

      
        ii

        
          

        

      

      
         

      

    

    

    TABLE
OF CONTENTS, cont.

    

    
      
        
          
            	
                    ARTICLE

                  	 
      	
                    PAGE

                  
	 
      	 
      	 
      	 
      	 
      
	
                    41.

                  	
                    Supplemental
      Air Conditioning

                  	 
      	
                    55

                  	 
      
	
                    42.

                  	
                    Renewal
      Option

                  	 
      	
                    56

                  	 
      
	
                    43.

                  	
                    Renewal
      Option Arbitration

                  	 
      	
                    58

                  	 
      
	
                    44.

                  	
                    15th
      Floor Additional Space

                  	 
      	
                    59

                  	 
      
	
                    45.

                  	
                    Additional
      Option Space

                  	 
      	
                    61

                  	 
      
	
                    46.

                  	
                    Additional
      Option Space Arbitration

                  	 
      	
                    64

                  	 
      
	 
      	
                    Testimonium
      and Signatures

                  	 
      	
                    66

                  	 
      
	 
      	
                    Acknowledgments

                  	 
      	
                    67

                  	 
      
	 
      	
                    Schedule
      A

                  	
                    Floor
      Plan

                  	 
      	
                    68

                  	 
      
	 
      	
                    Schedule
      B

                  	
                    Description
      of Land

                  	 
      	
                    69

                  	 
      
	 
      	
                    Schedule
      C

                  	
                    Rules
      and Regulations

                  	 
      	
                    70

                  	 
      
	 
      	
                    Schedule
      D

                  	
                    Cleaning
      Specifications

                  	 
      	
                    75

                  	 
      
	 
      	
                    Schedule
      E

                  	
                    Definitions

                  	 
      	
                    77

                  	 
      

          

        

      

    

     

    
      
         

      

      
        iii

        
          

        

      

      
         

      

    

    

    INDENTURE OF LEASE made as of
March 3, 2010, between FIFTH
AVENUE BUILDING COMPANY LLC, a New York limited liability company, having
an office at 750 Lexington Avenue, 28th Floor
New York, New York 10022 ("Landlord") and JESUP & LAMONT, INC., a
Washington corporation, having an office at 650 Fifth Avenue, 3rd Floor,
New York, New York 10019 ("Tenant").

     

    WITNESSETH:

     

    ARTICLE
1

     

    Premises;
Term

     

    Landlord
hereby leases to Tenant and Tenant hereby hires from Landlord the following
space ("Demised Premises"): the entire 17th floor,
as shown crosshatched on the floor plan (Schedule A) attached hereto, in the
office building known as and by the street number 623 Fifth Avenue, in the
Borough of Manhattan, City and State of New York ("Building"), located on the
land (“Land”) more particularly described in Schedule B attached hereto, upon
and subject to the terms, covenants and conditions hereafter set
forth.

     

    TO HAVE AND TO HOLD the
Demised Premises unto Tenant for a term commencing on March 3, 2010 (the
"Commencement Date") and ending on August 31, 2017 (unless sooner terminated
pursuant to the provisions of this Lease) ("Expiration Date").

     

    IT IS MUTUALLY COVENANTED AND
AGREED between Landlord and Tenant as follows:

     

    ARTICLE
2

     

    Commencement
of Term

     

    Section
2.01. The term of this Lease shall commence on March 3, 2010. On the
Commencement Date, Landlord shall deliver vacant possession of the Demised
Premises to Tenant and the electrical, mechanical, plumbing, life safety,
sprinkler systems, and the heat, ventilation and air conditioning systems
(“HVAC”) serving the Demised Premises shall be in working order.

     

    Section
2.02. Subject to Section 2.01 above, Tenant has fully inspected the Demised
Premises, is familiar with the condition thereof and agrees to accept possession
of the same in its “As Is” condition on the Commencement Date. Landlord shall
not be required to do any work therein to make the same suitable for the
operation of Tenant's business. Landlord represents that the Demised Premises
does not contain hazardous materials. On the Commencement Date, Landlord shall
deliver an ACP-5 certificate for the Demised Premises.

     

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    ARTICLE
3

     

    Rent

     

    Section
3.01. Tenant shall pay as rent for the Demised Premises from and after the
Commencement Date, the following:

     

    (a)          a
fixed minimum rent (the "minimum rent") at the following annual
rates:

     

    (i)           Nine
Hundred Forty-One Thousand Five Hundred Ninety Dollars ($941,590.00) per annum
(payable $78,465.83 per month) from the Commencement Date to August 31, 2013;
and

     

    (ii)          Nine
Hundred Ninety-Nine Thousand Five Hundred Thirty-Four Dollars ($999,534.00) per
annum (payable $83,294.50 per month) from September 1, 2013 for the remainder of
the term; and

     

    (b)          all
other sums and charges required to be paid by Tenant under the terms of this
Lease (including without limitation, the payments required to be made under
Article 22), which shall be deemed to be and are sometimes referred to hereafter
as additional rent.

     

    Section
3.02. Notwithstanding the provisions of Section 3.01 hereof and provided Tenant
is not then in default under any of the provisions of this Lease on its part to
be performed, Tenant shall be entitled to an abatement of part of the minimum
rent only in the amount of $78,465.83 for the 1st, 2nd, 3rd,
16th,
17th
and 18th months
of the term succeeding the Commencement Date (totaling six (6) months), provided
that any additional rent for each such month shall be paid by
Tenant.

     

    Section
3.03. The minimum rent shall be payable in equal monthly installments not more
than one month in advance on the first day of each and every month during the
term of this Lease, except that the amount of $78,465.83 shall be paid upon the
execution of this Lease and applied to the payment of minimum rent for the
fourth (4th) month
of the term following the Commencement Date.

     

    Landlord
and Tenant agree that Tenant shall pay minimum rent, additional rent and other
amounts now due or hereafter to become due to the Landlord or its agents as
provided for in this Lease, (as and when due) directly to the following lock-box
account:

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    Fifth
Avenue Building Company LLC 

    P.O. Box
5719 

    Hicksville,
New York 11802-5719

     

    All rent
checks shall be made payable to Fifth Avenue Building Company LLC.

     

    Section
3.04. Tenant shall pay the minimum rent and additional rent in lawful money of
the United States which shall be legal tender for the payment of all debts,
public and private, at the time of payment.

     

    Section
3.05. The minimum rent and additional rent shall be payable by Tenant without
any set-off, abatement or deduction whatsoever and without notice or demand,
except as otherwise expressly provided herein.

     

    ARTICLE
4

     

    Use

     

    Section
4.01. Tenant shall use and occupy the Demised Premises for general, executive
and administrative offices for securities brokerage and investment banking, and
for no other use or purpose.

     

    Section
4.02. Notwithstanding the provisions of Section 4.01, Tenant shall not use or
allow the use of the Demised Premises or any part thereof (1) for the cooking
and/or sale of food; (2) for storage for sale of any alcoholic beverage in the
Demised Premises; (3) for the storage and/or sale of any product or material
from the Demised Premises; (4) for manufacturing or commercial printing
purposes; (5) for the conduct of a school or training facility or similar type
of business which results in the presence of the general public in the Demised
Premises; (6) for the conduct of the business of an employment agency or
personnel agency; (7) for the conduct of any public auction or public
exhibition; (8) for occupancy by a foreign, United States, state, municipal or
other governmental or quasi-governmental body, agency or department or any
authority or other entity which is affiliated therewith or controlled thereby
and which has diplomatic or sovereign immunity or the like with respect to a
commercial lease; (9) for messenger or delivery service (excluding Tenant's own
employees or outside services); (10) as a public stenographer or typist; (11) as
a telephone or telegraph agency; (12) as a company engaged in the business of
renting office(s) or desk space in the Demised Premises to the general public;
(13) as medical offices or a laboratory; (14) as a travel agency; (15) as a
dating service; (16) as a restaurant; (17) as a night club, discotheque, arcade
or like kind establishments; (18) as a public or quasi-public health facility,
radiation treatment facility, methadone clinic or other drug related clinic,
abortion clinic, or for any practice conducted in or through the format of a
clinic; (19) as a pawn shop; (20) as an off-track betting parlor; (21) as a
homeless shelter, soup kitchen or similar use; (22) for the sale or display or
pornographic products or services; (23) for the use or storage of flammable
liquids or chemicals (unless incidental to a permitted use); (24) as a
funeral parlor; (25) for the sale or grooming of pets; or (26) for any form of
spiritualist services, such as fortune telling or
reading.  Furthermore, the Demised Premises shall not be used for any
purpose that would, in Landlord's reasonable judgment, tend to lower the
first-class character of the Building, create unreasonably excessive elevator or
floor loads, materially impair or interfere with any of the Building operations
or the proper and economic heating, air-conditioning, cleaning or any other
services of the Building, interfere with the use of the other areas of the
Building by any other tenants, or impair the appearance of the
Building.  Neither Tenant nor any person within Tenant's control shall
use, generate, store, treat and/or dispose of any Hazardous Materials (as
hereinafter defined) in, on, under or about the Demised Premises.

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    Section
4.03. If any governmental license or permit, other than a Certificate of
Occupancy, is required for the proper and lawful conduct of Tenant's business in
the Demised Premises, or any part thereof, and if failure to secure such license
or permit would in any way affect Landlord, Tenant, at its expense, shall duly
procure and thereafter maintain such license or permit and submit the same for
inspection by Landlord.  Tenant shall at all times comply with the
terms and conditions of each such license or permit.

     

    Section
4.04. Tenant shall not at any time use or occupy, or permit anyone to use or
occupy, the Demised Premises, or do or permit anything to be done in the Demised
Premises, in violation of the Certificate of Occupancy for the Demised Premises
or for the Building, and will not permit or cause any act to be done or any
condition to exist on the Demised Premises which may be dangerous unless
safeguarded as required by law, or which in law constitutes a nuisance, public
or private, or which may make void or voidable any insurance then in force
covering the Building and building equipment.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    ARTICLE
5

     

    Alterations,
Fixtures

     

    Section
5.01.  Tenant, without Landlord's prior consent, shall make no
structural or exterior alterations, installations, additions, or improvements
(“work”) in or to the Demised Premises. However, subject to Landlord's consent,
which shall not be unreasonably withheld, conditioned or delayed, Tenant may
make non-structural interior alterations, including, without limitation, the
installation of special systems such as private bathrooms, a supplemental air
conditioning system, computer facilities and a fitness area (collectively
“Alterations”) in the Demised Premises, provided that: (i) such Alterations
shall not affect the Building structure; (ii) such Alterations shall not affect
any area, outside the Demised Premises or the Building; (iii) such Alterations
shall comply with all Governmental Requirements, and any other provisions of
this Lease; (iv) such Alterations shall not unreasonably interfere with the
normal and customary business operations of other tenants of the Building or
Building Project; or (v) such Alterations shall not cause or create a dangerous
or hazardous condition. Notwithstanding the foregoing, Tenant may make any
Alterations that cost less than $75,000.00 during any twelve (12) consecutive
month period without Landlord's consent but subject to Landlord's approval of
contractors as set forth below which approval of the contractor shall not be
unreasonably withheld, conditioned or delayed provided that the contractor is
licensed, bonded, insured and complies with Landlord’s contractor integrity
program, provided further that Tenant delivers to Landlord written notice of
such Alterations at least ten (10) business days prior to the commencement
thereof. Tenant may also make Alterations, or may paint the Demised Premises and
install carpeting, wall covering and furnishings in the Demised Premises (the
“Cosmetic Alterations”) and technology alterations (i.e. – voice and data
cabling, equipment installations and upgrades) (collectively, the “Permitted
Alterations”) without Landlord's consent but subject to Landlord's approval of
contractors, which approval shall not be unreasonably withheld, conditioned or
delayed provided that the contractor is licensed, bonded, insured and complies
with Landlord’s contractor integrity program, provided further that Tenant
delivers to Landlord written notice of such Permitted Alterations at least ten
(10) business days prior to the commencement thereof. The foregoing shall apply
to Landlord's right to approve Tenant's contractors, and shall not be deemed to
require Landlord's consent for the actual performance of the Permitted
Alterations. If any contractor, other than Landlord, shall perform any work or
Alterations, such contractor shall first be approved by Landlord and Tenant
shall pay to Landlord any out-of-pocket expenses incurred by Landlord in
connection therewith, provided, that Tenant shall not be required to pay such
expenses for (i) Tenant’s Work to prepare the Demised Premises for Tenant’s
initial occupancy and (ii) Cosmetic Alterations and technology alterations (i.e.
– voice and data cabling, equipment installations and upgrades). Notwithstanding
the foregoing, Tenant may, without first obtaining Landlord's consent, utilize
the services of any licensed architect or engineer which Tenant, in its sole and
absolute discretion, deems acceptable. In connection with any request by Tenant
of Landlord that Landlord approve a contractor or subcontractors, Tenant shall
cause the proposed contractor or subcontractor to complete and submit to
Landlord such reasonable questionnaire, if any, as Landlord shall require as
part of Landlord’s contractor integrity program.  Thereafter, Tenant
agrees to reasonably cooperate with Landlord, provided there shall be no cost to
Tenant, in connection with the implementation of such program and to cause its
contractors to comply therewith.  During the term of this Lease,
Landlord may elect to pursue work in the Building under the provisions of the
ICAP Program (as hereinafter defined).  The parties acknowledge that
the ICAP Program is not currently in effect at the Building. Tenant acknowledges
that the ICAP Program may impose requirements with respect to the hiring and
training practices, among other matters, of contractors and subcontractors
engaged to perform certain work in the Building for Tenant (collectively, herein
called "Tenant's Contractors").  Tenant shall use Tenant's Contractors
(subject to Landlord's approvals) that qualify under the applicable requirements
of the ICAP Program for the performance of Tenant's work and any alterations to
the Demised Premises and Tenant will require Tenant's Contractors to comply with
the provisions of the ICAP Program.  If Landlord is notified of any
violation of the ICAP Program by Tenant's Contractors, Landlord shall promptly
advise Tenant, and Tenant shall take all reasonable actions to cure such
violations.  Workers' compensation and commercial general liability
insurance covering claims for personal injury, death, bodily injury and
property damage insurance, all in amounts and with companies licensed to conduct
business in New York, shall be provided and at all times maintained by Tenant's
contractors engaged in the performance of the work, and before proceeding with
the work, copies of certificates of such insurance shall be furnished to
Landlord.  If consented to by Landlord, all such work shall be done at
Tenant's sole expense and in full compliance with all Governmental Requirements
(as hereinafter defined).  Upon completion of such work, Tenant shall
deliver to Landlord full scale "as built" plans for the same in both paper and
electronic CAD (either in DWF or DWG) formats.  All improvements
affixed to the realty shall become the property of Landlord, subject to Tenant's
right to replace same during the term hereof with items of equal quality class
and value, and shall remain upon, and be surrendered with, the Demised Premises
as a part thereof at the end of the term or any renewal or extension term, as
the case may be, without allowance to Tenant or charge to
Landlord.  Notwithstanding anything contained in this Lease to the
contrary, Tenant shall not be obligated to remove any alterations or
improvements existing in the Demised Premises as of the Commencement Date. For
purposes of this Section 5.01, “Specialty Alterations” shall mean any structural
alterations and any alterations consisting of vaults, internal staircases, any
alterations which penetrate any floor slab, raised flooring and other
alterations of a similar character which are not customary for general office
use in a Class A office building. Tenant shall, at Tenant's cost and expense,
remove any Specialty Alteration reasonably designated by Landlord, repair any
damage to the Demised Premises or the Building due to such removal, provided,
however, that reasonable wear and tear and damage to the Demised Premises from
casualty shall be excepted. Landlord shall reasonably designate which
alterations are deemed to be Specialty Alterations which must be removed at the
end of the term, at the time that consent to such Specialty Alteration(s) is
given by Landlord.  Notwithstanding the foregoing, If Landlord does
not require at the time of granting consent that the Specialty Alterations must
be removed at the end of the term, then such Specialty Alterations shall remain
in the Demised Premises. If any Building facilities or services, including but
not limited to air-conditioning and ventilating equipment installed by Landlord,
are adversely affected or damaged by reason of the work performed negligently by
Tenant, Tenant, at its expense, shall repair such damage to the extent such
damage has been caused by Tenant's negligent work and shall correct the work so
as to prevent any further damage or adverse effect on such facilities or
services.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    Section
5.02. Prior to commencing any work pursuant to the provisions of Section 5.01,
Tenant shall furnish to Landlord:

     

    (a)          Plans
and specifications for the work (Tenant’s Plans”) to be done in both paper and
electronic CAD (either in DWF or DWG) formats. Tenant’s Plans shall be subject
to Landlord’s approval (which approval shall not be unreasonably withheld,
conditioned or delayed). Landlord shall promptly review Tenant's Plans and shall
notify Tenant within ten (10) business days of the receipt of Tenant's Plans or
within five (5) business days of any resubmission thereof that Landlord either:
(i) approves Tenant's Plans, (ii) disapproves Tenant's
Plans (stating the reasons therefor with reasonable specificity), or (iii)
requires clarification or additional information.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    (b)          Copies
of all governmental permits and authorizations which may be required in
connection with such work. Upon request from Tenant, Landlord, at no expense to
Landlord, shall join in any applications for permits, approvals or certificates
of governmental agencies or authorities (collectively, “Application”) required
to be obtained by Tenant in connection with Tenant's Work.

     

    (c)          A
certificate evidencing that Tenant (or Tenant's contractor) has procured
workers' compensation insurance covering all persons employed in connection with
the work who might assert claims for death or bodily injury against Landlord,
Tenant, any mortgagee or the Building.

     

    (d)        A
bond, letter of credit, additional security deposit or other security reasonably
satisfactory to Landlord, in the amount of the aggregate cost of the work in
excess of Landlord's Reimbursement Contribution, to insure the completion of
such work.

     

    Section
5.03. No approval of plans or specifications by Landlord or consent by Landlord
allowing Tenant to perform work in the Demised Premises shall be deemed to be an
agreement by Landlord that the contemplated work complies with any Governmental
Requirements or insurance requirements or the certificate of occupancy for the
Building nor a determination or representation by Landlord that the contemplated
work will be functional or operational in the Demised Premises nor shall it be
deemed to be a waiver by Landlord of the compliance by Tenant of any of the
terms of this Lease.  Neither Landlord, Landlord’s agents nor the
mortgagee shall be liable for any labor or materials furnished or to be
furnished to Tenant upon credit, and no mechanic’s or other lien for such labor
or materials shall attach to or affect any estate or interest of Landlord or the
mortgagee in and to the Demised Premises or the Building Project.

     

    Section
5.04. Where furnished by or at the expense of Tenant (except the replacement of
an item theretofore furnished and paid for by Landlord or for which Tenant has
received a credit), all movable property, furniture, furnishings, roller files,
equipment and trade fixtures ("personalty") other than those affixed to the
realty shall remain the property of and shall be removed by Tenant on or prior
to any termination or expiration of this Lease, and, in the case of damage by
reason of such removal, Tenant, at Tenant's expense, promptly shall repair the
damage.  If Tenant does not remove any such personalty, Landlord, at
its election, (a) may cause the personalty to be removed and placed in storage
at Tenant's expense or (b) may treat the personalty as abandoned and may dispose
of the personalty as it sees fit without accounting to Tenant for any proceeds
realized upon such disposal.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    Section
5.05. Tenant agrees that the exercise of its rights pursuant to the provisions
of this Article 5 shall not be done in a manner which would create any
work stoppage, picketing, labor disruption or dispute or violate Landlord's
union contracts affecting the Building or unreasonably interfere with the
business of Landlord or any Tenant or occupant of the Building.  In
the event of the occurrence of any condition described above arising from the
exercise by Tenant of its right pursuant to the provisions of this Article 5,
Tenant shall, promptly after notice from Landlord, cease the manner of exercise
of such right giving rise to such condition.  In the event Tenant
fails to cease such manner of exercise of its rights as aforesaid, Landlord, in
addition to any rights available to it under this Lease and pursuant to law,
shall have the right to seek an injunction for specific
performance.  With respect to Tenant's work, Tenant shall make all
arrangements for, and pay all expenses incurred in connection with, use of the
freight elevators servicing the Demised Premises during those hours other than
as provided in Section 21.01(a) in accordance with Landlord's customary charges
therefor.  Notwithstanding the foregoing, provided that Tenant is not
then in default, after any applicable notice and the expiration of any
applicable grace period, of any of the terms and conditions of this Lease on
Tenant’s part to be performed, Tenant shall, at no additional charge, have the
right to use the Building’s freight elevator for up to fifty (50) hours of
overtime and/or business hours in the aggregate during the performance of
Tenant's Work (as herein defined) and move-in to the Demised Premises during the
first six (6) months after the Commencement Date.

     

    Section
5.06. Tenant shall have sufficient access to the core closets and shall be
provided with sufficient shaft spaces, as needed. Tenant, at Tenant’s sole cost
and expense, shall be permitted to install two (2) 3” conduits from the
Building’s communication POE’s to the Demised Premises, in accordance with the
provisions of this Article.

     

    ARTICLE
6

     

    Repairs

     

    Section
6.01. Tenant shall take good care of the non-structural portions of the Demised
Premises and the fixtures therein and all portions of the HVAC serving the
Demised Premises, mechanical, plumbing and electrical systems within and
exclusively serving the Demised Premises, and at its sole cost and expense make
all repairs thereto as and when needed to preserve them in good working order
and condition.  All damage or injury to the Demised Premises or the
Building or to any building equipment or systems caused by Tenant moving
property in or out of the Building or by installation or removal of personalty
or resulting from negligence or intentional misconduct of Tenant, its employees,
agents, contractors, customers, invitees and visitors, shall be repaired,
promptly by Tenant at Tenant's expense, and whether or not involving structural
changes or alterations, to the satisfaction of Landlord.  All repairs
shall include replacements or substitutions where necessary and shall be at
least equal to the quality, class and value of the property repaired, replaced
or substituted and shall be done in a good and workmanlike
manner.

    
      
         

      

      
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    Section
6.02. Landlord, at its expense, shall maintain and make all repairs and
replacements, structural and otherwise, to the exterior and public portions of
the Building and to the Demised Premises, unless Tenant is required to make them
under the provisions of Section 6.01 or unless required as a result of the
performance of alterations by Tenant or on Tenant's behalf, in which event
Tenant, at its expense, shall perform such maintenance, repairs or
replacements.   Tenant shall notify Landlord of the necessity for
any repairs for which Landlord may be responsible in the Demised Premises under
the provisions of this Section.  Landlord shall have no liability to
Tenant by reason of any inconvenience, annoyance, interruption or injury to
business arising from Landlord's making any repairs or changes which Landlord is
required or permitted by this Lease, or required by law, to make in or to any
portion of the Building or the Demised Premises, or in or to the fixtures,
equipment or appurtenances of the Building or the Demised Premises, provided
that Landlord shall use commercially reasonable efforts to minimize any
disruption to Tenant's business operations in the Demised Premises.

     

    Section
6.03. Tenant shall not store or place any materials or other obstructions in the
lobby or other public portions of the Building, or on the sidewalk abutting the
Building.

     

    ARTICLE
7

     

    Floor Load; Noise

     

    Section
7.01. Tenant shall not place a load upon any floor of the Demised Premises which
exceeds the load per square foot which such floor was designed to carry (50 lbs.
live per square foot) and which is allowed by law.

     

    Section
7.02. Business machines and mechanical equipment belonging to Tenant which cause
noise, vibration or any other nuisance that may be transmitted to the structure
or other portions of the Building or to the Demised Premises, to such a degree
as to be objectionable to Landlord or which interfere with the use or enjoyment
by other tenants of their premises or the public portions of the Building, shall
be placed and maintained by Tenant, at Tenant's expense, in settings of cork,
rubber or spring type vibration eliminators sufficient to eliminate such
objectionable or interfering noise or vibration.

     

    
      
         

      

      
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    ARTICLE
8

     

    Laws, Ordinances, Requirements of
Public Authorities

     

    Section
8.01. (a)    Landlord represents that as of the Commencement
Date, the Demised Premises shall be free of any Hazardous Materials (as that
term is hereinafter defined) and that as of the Commencement Date, the Demised
Premises shall be in compliance with legal requirements. Tenant, at its
expense, shall comply with all laws, orders, ordinances, rules and regulations
and directions of Federal, State, County and Municipal authorities and
departments thereof having jurisdiction over the Demised Premises and the
Building, now or hereafter in effect including but not limited to the Americans
With Disabilities Act (collectively "Governmental Requirements"), arising by
reason of Tenant's specific manner of use of the Demised Premises or any
installations made therein by or on behalf of Tenant, or any default by Tenant
under this Lease.

     

    (b)    
   Tenant covenants and agrees that Tenant shall, at Tenant's
sole cost and expense, comply at all times with all Governmental Requirements
governing the use, generation, storage, treatment and/or disposal of any
"Hazardous Materials" (which term shall mean any biologically or chemically
active or other toxic or hazardous wastes, pollutants or substances, including,
without limitation, asbestos, PCBs, petroleum products and by-products,
substances defined or listed as "hazardous substances" or "toxic substances" or
similarly identified in or pursuant to the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. § 9601 et seq., and as hazardous
wastes under the Resource Conservation and Recovery Act, 42 U.S.C. § 6010 et seq., any chemical
substance or mixture regulated under the Toxic Substance Control Act of 1976, as
amended, 15 U.S.C. § 2601 et
seq., any "toxic pollutant" under the Clean Water Act, 33 U.S.C. § 466
et seq., as amended,
any hazardous air pollutant under the Clean Air Act, 42 U.S.C. § 7401 et seq., hazardous materials
identified in or pursuant to the Hazardous Materials Transportation Act, 49
U.S.C. § 1802 et seq.,
and any hazardous or toxic substances or pollutant regulated under any other
Governmental Requirements), to the extent such compliance is necessitated by
Tenant's specific manner of use of the Demised Premises.  Tenant shall
agree to execute, from time to time, at Landlord's request, affidavits,
representations and the like concerning Tenant's best knowledge and belief
regarding the presence of Hazardous Materials in, on, under or about the Demised
Premises, the Building or the Land.  Tenant shall indemnify and hold
harmless Landlord, its partners, officers, shareholders, members, directors and
employees, the lessor under the Saks Lease (as hereinafter defined) and any
mortgagee (collectively, the "Indemnitees"), from and against any loss, cost,
damage, liability or expense (including attorneys' fees and disbursements)
arising by reason of any cleanup, removal, remediation, detoxification action or
any other activity required or recommended of any Indemnitees by any government
authority by reason of the presence in or about the Land, the Building or the
Demised Premises of any Hazardous Materials, as a result of or in connection
with the negligent act or omission of Tenant or any person or entity within
Tenant's control or the breach of this Lease by Tenant or any person or entity
within Tenant's control.  The foregoing covenants and indemnity shall
survive the expiration of any termination of this Lease.

    
      
         

      

      
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    (c)         Landlord,
at its expense, shall comply with and cure Governmental Requirements relating to
the public portions of the Building and to the Demised Premises, provided
non-compliance will impair Tenant's use or access to the Demised Premises, and
provided that Tenant is not obligated to comply with them under the provisions
of subdivision (a) of this Section.  Landlord, at its expense, may
contest the validity of any Governmental Requirements and postpone compliance
therewith pending such contest.

     

    Section
8.02. If Tenant receives written notice of any violation of any Governmental
Requirements applicable to the Demised Premises, it shall give prompt notice
thereof to Landlord.

     

    Section
8.03. Tenant will not clean, nor allow any window in the Demised Premises to be
cleaned, from the outside in violation of Section 202 of the Labor Law or the
rules of the Board of Standards and Appeals or of any other board or body having
or asserting jurisdiction.

     

    ARTICLE
9

     

    Insurance

     

    Section
9.01. Tenant shall not do or permit to be done any act or thing in or upon the
Demised Premises which will invalidate or be in conflict with the Certificate of
Occupancy for the Building or the terms of the insurance policies covering the
Building and the property and equipment therein; and Tenant, at its expense,
shall comply with all rules, orders, regulations and requirements of the New
York Board of Fire Underwriters or any other similar body having jurisdiction,
and of the insurance carriers, and shall not knowingly do or permit anything to
be done in or upon the Demised Premises in a manner which directly increases the
rate of insurance for the Building or any property or equipment therein over the
rate in effect on the Commencement Date.

     

    Section
9.02. If, by reason of Tenant's failure to comply with the provisions of Section
9.01 or any of the other provisions of this Lease, the rate of insurance for the
Building or the property and equipment of Landlord shall be higher than on the
Commencement Date, Tenant shall pay to Landlord any additional or increased
insurance premiums to the extent resulting therefrom thereafter paid by Landlord
until such increase terminates, and Tenant shall make such payment forthwith on
demand of Landlord.  In any action or proceeding wherein Landlord and
Tenant are parties, a schedule or "make up" of any insurance rate for the
Building or Demised Premises issued by the New York Fire Insurance Exchange, or
other body establishing fire insurance rates for the Building, shall be
conclusive evidence of the facts therein stated and of the several items
and charges in the insurance rates then applicable to the Building or Demised
Premises.

     

    
      
         

      

      
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    Section
9.03. (a)       Tenant covenants to provide on or
before the Commencement Date and to keep in force during the term hereof, the
following insurance coverage:

     

    (i)   
     For the benefit of Landlord, Tenant and any
mortgagee, a commercial general liability policy naming Landlord (and Landlord’s
designees) and any mortgagee as additional insureds, protecting and indemnifying
Landlord, Tenant and any mortgagee against any and all claims for personal
injury, death, bodily injury or property damage occurring upon, in or about the
Demised Premises, and the public portions of the Building in connection with any
act of Tenant, its employees, agents, contractors, customers, invitees and
visitors including, without limitation, personal injury, death, bodily injury or
property damage resulting from any work performed by or on behalf of Tenant,
with coverage of not less than $3,000,000, combined single limit for personal
injury, death and property damage arising out of one occurrence or
accident.

     

    (ii)    
   All risk property insurance utilizing the special form in an
amount adequate to cover the cost of replacement of all personal property,
fixtures, furnishings and equipment, including any work (as referred to in
Section 5.01), located in the Demised Premises.

     

    (iii)   
    Workers’ compensation insurance in such limits as
required by applicable Governmental Requirements.

     

    (iv)  
    Business interruption insurance covering those risks referred
to in subdivision (ii) above, in the amount equal to all rents payable under
this Lease for a period of twelve (12) months, commencing with the date of
loss.

     

    (b)   
    All such insurance shall (i) be effected under valid and
enforceable policies, (ii) be issued by insurers of recognized responsibility
authorized to do business in the State of New York, (iii) contain a provision
whereby the insurer agrees not to cancel the insurance without thirty (30) days'
prior written notice to Landlord, (iv) contain a provision that no act or
omission of Tenant shall result in forfeiture of the insurance as against
Landlord, (v) be in form acceptable to Landlord or shall use standard forms,
(vi) be primary and not contribute with any insurance carried by Landlord,
and (vii) be placed with insurers carrying a Bests rating of at least
A-VIII.

     

    
      
         

      

      
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    On or
before the Commencement Date, Tenant shall deliver to Landlord certificates
evidencing the aforesaid insurance coverage, such certificates to contain an
endorsement naming Landlord (and Landlord’s designees) as additional insureds
for liability insurance, and renewal policies or certificates shall be delivered
to Landlord at least thirty (30) days prior to the expiration date of each
policy with proof of payment of the premiums thereof.

     

    Section
9.04. Landlord and Tenant shall each secure an appropriate clause in, or an
endorsement upon, each all risk property insurance policy obtained by it and
covering the Building, the Demised Premises or the personal property, fixtures
and equipment located therein or thereon, pursuant to which the respective
insurance companies waive subrogation to the extent insurance proceeds are
received for such loss, 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 to the
extent insurance proceeds are recovered from such loss.  The waiver of
subrogation or permission for waiver of any claim herein before 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 Demised 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, the party benefitting from the waiver or
permission shall pay such charge upon demand, or shall be deemed to have agreed
that the party obtaining the insurance coverage in question shall be free of any
further obligations under the provisions hereof relating to such waiver or
permission.

     

    Subject
to the foregoing provisions of this Section 9.04, 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 to the extent that insurance proceeds are
recovered for such loss, damage or destruction.

     

    
      
         

      

      
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    ARTICLE
10

     

    Damage
by Fire or Other Cause

     

    Section
10.01. If the Demised Premises shall be damaged by fire or other casualty or the
Demised Premises is rendered inaccessible due to fire or other casualty, the
damage shall be repaired by and at the expense of Landlord and the minimum rent
and additional rent pursuant to the provisions of Article 22 until such repairs
shall be made, shall be apportioned according to the part of the Demised
Premises which is usable by Tenant.  Landlord shall have no
responsibility to repair any Tenant's work (as referred to in Section 5.01), the
same being the responsibility of Tenant.  No penalty shall accrue for
delays which may arise by reason of adjustment of insurance by Landlord,
unavoidable delays (as hereinafter defined), or any other cause beyond
Landlord's reasonable control.  Tenant shall give notice to Landlord
promptly upon learning thereof in case of fire or other damage to the Demised
Premises.  If the Demised Premises are totally or substantially
damaged or are rendered wholly or substantially unusable by fire or any such
other casualty, or if the Building shall be so damaged that Landlord shall
decide to demolish it or to rebuild it (whether or not the Demised Premises
shall have been damaged), or if more than twenty-five (25%) percent of the
rentable square feet of the Demised Premises shall be damaged during the last
year of the term hereof, Landlord at its election may terminate this Lease by
written notice to Tenant, within ninety (90) days after such fire or other
casualty, and thereupon the term of this Lease shall expire by lapse of time
upon the third (3rd) day after such notice is given, and Tenant shall vacate and
surrender the Demised Premises to Landlord.  Tenant shall not be
liable under this Lease for anything accruing after the date of such
expiration.  Notwithstanding the foregoing provisions of this Section,
within sixty (60) days after such casualty, Landlord shall provide Tenant with
an estimate as to the time reasonably required to repair such
damage.  If such period exceeds nine (9) months from the date of such
casualty, subject to unavoidable delays not to exceed ninety (90) days, Tenant
may elect to terminate this Lease by notice to Landlord no later than ten (10)
days following Tenant's receipt of such estimate, and thereupon the term of this
Lease shall expire on the thirtieth (30th) day
after Tenant's notice is given, and Tenant shall vacate and surrender the
Demised Premises to Landlord.  If Landlord does not substantially
complete such repairs within said period of nine (9) months, subject to
unavoidable delays not to exceed ninety (90) days,  then Tenant may
elect to terminate this Lease by notice to Landlord within ten (10) days
following the expiration of such time period, and thereupon the term of this
Lease shall expire on the thirtieth (30th) day
after such notice is given, and Tenant shall vacate and surrender the Demised
Premises to Landlord, unless within such thirty (30) day period, Landlord
substantially completes the repair of such damage, in which event this Lease
shall remain in full force and effect.

     

    Tenant
hereby waives the provisions of Section 227 of the Real Property Law, and the
provisions of this Article shall govern and control in lieu
thereof.  If the damage is due to the fault or neglect of Tenant, the
debris shall be removed by, and at the expense of, Tenant.

     

    Section
10.02. No damages of compensation shall be payable by Landlord nor shall Tenant
make any claim for inconvenience, loss of business or annoyance arising from any
repair or restoration of any portion of the Demised Premises or of the Building,
provided that Landlord shall use its commercially reasonable efforts to commence
and effect such repairs promptly and in such manner as not to unreasonably
interfere with Tenant's occupancy.

    
      
         

      

      
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    ARTICLE
11

     

    Assignment,
Subletting, Mortgaging

     

    Section
11.01. Tenant will not, by operation of law or otherwise, assign, mortgage or
encumber this Lease, or sublet or permit the Demised Premises or any part
thereof to be occupied or used by others for desk space or mailing privileges,
without Landlord's prior written consent in each instance.  If this
Lease be assigned, or if the Demised Premises or any part thereof be underlet or
occupied by anybody other than Tenant, Landlord, may, after default by Tenant,
collect rent from the assignee, undertenant or occupant, and apply the net
amount collected to the rent herein reserved, but no 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 any assignment,
subletting, mortgage or encumbrance shall not in any manner be construed to
relieve Tenant from obtaining Landlord's express consent to any other or further
assignment, subletting, mortgage or encumbrance.  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.

     

    Section
11.02. If Tenant shall at any time or times during the term of this Lease desire
to assign this Lease or sublet all or part of the Demised Premises, Tenant shall
give notice thereof to Landlord, which notice shall be accompanied by (a) a
conformed or photostatic executed copy of the proposed assignment or sublease,
together with an abstract of the material terms of the assignment or sublease,
the effective or commencement date of which shall be not less than thirty (30)
nor more than one hundred eighty (180) days after the giving of such notice, (b)
a statement setting forth in reasonable detail the identity of the proposed
assignee or subtenant, the nature of its business and its proposed use of the
Demised Premises, (c) a statement in sufficient detail satisfactory to Landlord,
setting forth the calculations of the sums to be payable to Landlord pursuant to
the provisions of Section 11.10, and (d) current financial information with
respect to the proposed assignee or subtenant, including, without limitation,
its most recent financial report.  Such notice shall be deemed an
offer from Tenant to Landlord whereby Landlord may, at its option, terminate
this Lease if the proposed transaction is an assignment or a sublease (whether
by one sublease or a series of related or unrelated subleases) of all or
substantially all of the Demised Premises.

     

    Section
11.03. If Landlord exercises its option to terminate this Lease in the case
where Tenant desires either to assign this Lease or sublet (whether by one
sublease or a series of related or unrelated subleases) all or substantially all
of the Demised Premises, then this Lease shall end and expire on the date that
such assignment or sublet was to be effective or commence, as the case may be,
and the minimum rent and additional rent shall be paid and apportioned to such
date.

    
      
         

      

      
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    Section
11.04. Intentionally Deleted. 

     

    Section
11.05. Intentionally Deleted. 

     

    Section
11.06. Intentionally Deleted.

     

    Section
11.07. In the event Landlord does not exercise an option provided to it pursuant
to Section 11.02 and provided that Tenant is not in default in any of Tenant's
obligations under this Lease, Landlord's consent (which must be in writing and
in form reasonably satisfactory to Landlord) to the proposed assignment or
sublease shall not be unreasonably withheld or delayed, provided and upon
condition that:

     

    (a)           Tenant
shall have complied with the provisions of Section 11.02;

     

    (b)           In
Landlord's judgment, the proposed assignee or subtenant is engaged in a business
and the Demised Premises, or the relevant part thereof, will be used in a manner
which (i) is limited to the use expressly permitted under Sections 4.01 and 4.02
of this Lease; and (ii) is in keeping with the then standards of the
Building;

     

    (c)           The
proposed assignee or subtenant is a reputable person of good character and with
sufficient financial worth considering the responsibility involved, and Landlord
has been furnished with reasonable proof thereof;

     

    (d)           Neither
(i) the proposed assignee or sublessee nor (ii) any person which, directly or
indirectly, controls, is controlled by or is under common control with, the
proposed assignee or sublessee, is then an occupant of any part of the
Building;

     

    (e)           The
proposed assignee or sublessee is not a person with whom Landlord is currently
negotiating to lease space in the Building;

     

    (f)       
    The proposed sublease shall be in form reasonably
satisfactory to Landlord and shall comply with the provisions of this
Article;

     

    (g)           At
any one time there shall not be more than two (2) subtenants (including Landlord
or its designee) in the Demised Premises;

     

    (h)           Tenant
shall pay to Landlord within ten (10) days following written demand for any
reasonable costs that may be incurred by Landlord in connection with said
assignment or sublease, including, without limitation, the reasonable costs
incurred in making investigations as to the acceptability of the proposed
assignee or subtenant, and attorneys fees in connection with the granting of any
requested consent;

     

    
      
         

      

      
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    (i)       
    Tenant shall not have (i) advertised the Demised
Premises for subletting or assignment without prior notice to Landlord, or (ii)
listed the same at a rental rate less than the minimum rent or additional rent
at which Landlord is then offering to lease other space in the
Building.

     

    (j)     
      The proposed subtenant or assignee shall not
be entitled, directly or indirectly, to diplomatic or sovereign immunity and
shall be subject to the service of process in and the jurisdiction of the courts
of New York State.

     

    Except
for subletting by Tenant to Landlord or its designee pursuant to the provisions
of this Article, each subletting pursuant to this Article shall be subject to
all of the covenants, agreements, terms, provisions and conditions contained in
this Lease.  Notwithstanding any such subletting to Landlord or any
such subletting to any other subtenant and/or acceptance of rent or additional
rent by Landlord from any subtenant, Tenant shall and will remain fully liable
for the payment for the minimum rent and additional rent due and to become due
hereunder and for the performance of all the covenants, agreements, terms,
provisions and conditions contained in this Lease on the part of Tenant to be
performed and all acts and omissions of any licensee or subtenant or anyone
claiming under or through any subtenant which shall be in violation of any of
the obligations of this Lease, and any such violation shall be deemed to be a
violation by Tenant.  Tenant further agrees that notwithstanding any
such subletting, no other and further subletting of the Demised Premises by
Tenant or any person claiming through or under Tenant (except as provided in
Section 11.05) shall or will be made except upon compliance with and subject to
the provisions of this Article.  If Landlord shall reasonably decline
to give its consent to any proposed assignment or sublease, Tenant shall
indemnify, defend and hold harmless Landlord against and from any and all loss,
liability, damages, costs and expenses (including reasonable counsel fees)
resulting from any claims that may be made against Landlord by the proposed
assignee or sublessee or by any brokers or other persons claiming a commission
or similar compensation in connection with the proposed assignment or
sublease.

     

    Section
11.08. In the event that (a) Landlord consents to a proposed assignment or
sublease, and (b) Tenant fails to execute and deliver the assignment or sublease
to which Landlord consented within ninety (90) days after the giving of such
consent, then, Tenant shall again comply with all of the provisions and
conditions of Section 11.02 before assigning this Lease or subletting all or
part of the Demised Premises.

     

    Section
11.09. With respect to each and every sublease or subletting authorized by
Landlord under the provisions of this Lease, it is further
agreed:

    
      
         

      

      
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    (a)           No
subletting shall be for a term ending later than one day prior to the expiration
date of this Lease;

     

    (b)           No
sublease shall be valid, and no subtenant shall take possession of the Premises
or any part thereof, until an executed counterpart of such sublease has been
delivered to Landlord;

     

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

     

    Section
11.10. If Landlord gives its consent to any assignment of this Lease or to any
sublease, Tenant shall, in consideration therefor, pay to Landlord, as
additional rent:

     

    (a)           in
the case of an assignment of this Lease or an assignment by any sublessee of any
sublease, an amount equal to fifty percent (50%) of all sums and other
considerations paid to Tenant from the assignee for such assignment or paid to
Tenant by any sublessee or other person claiming through or under Tenant for
such assignment (including, but not limited to sums paid for the sale of
Tenant's or sublessee's fixtures, leasehold improvements, less, in case of a
sale thereof, the then net unamortized or undepreciated cost thereof determined
on the basis of Tenant's or sublessee's federal income tax
returns).  The sums payable to Landlord under this Section shall be
paid to Landlord as and when paid by such assignee to Tenant; and

     

    (b)           in
the case of a sublease, an amount equal to fifty percent (50%) of the rents and
charges and other consideration payable under the sublease to Tenant by the
subtenant or paid to Tenant by any such sublessee or other person claiming
through or under Tenant in connection with such subletting which is in excess of
the minimum rent and additional rent under Article 22 accruing during the term
of the sublease in respect of the subleased space (at the rate per square foot
payable by Tenant hereunder or such sublessee) pursuant to the terms of this
Lease (including, but not limited to, sums paid for the sale or rental of
Tenant's fixtures, leasehold improvements, less, in the case of the
sale  thereof, the then net unamortized or undepreciated cost thereof
determined on the basis of Tenant's or sublessee's federal income tax
returns).  The sums payable to Landlord under this Section shall be
paid to Landlord as and when paid by such subtenant to Tenant.

    
      
         

      

      
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    (c)           For
the purposes of computing the sums payable by Tenant to Landlord under
subparagraphs (a) and (b) hereof, there shall be excluded from the consideration
payable to Tenant by any assignee or sublessee any transfer taxes, rent
concession, reasonable attorneys' fees, reasonable brokerage commissions,
advertising costs and fix-up, build out costs paid by Tenant with respect to
such assignment or subletting, but only to the extent any such sums are
allocable to the period of this Lease (in the case of any assignment), or the
term of any sublease.

     

    Section
11.11. If Tenant or any subtenant is a corporation, partnership, limited
liability company or other entity, the provisions of Section 11.01 shall apply
to a transfer (by one or more transfers) of a majority of the stock partnership,
membership or other ownership interests of Tenant or such subtenant, as the case
may be, as if such transfer of a majority of the stock, partnership, membership
or other ownership interests of Tenant or such subtenant were an assignment of
this Lease; but said provisions and the provisions of Sections
11.02  and 11.10 shall not apply to transactions with a corporation,
partnership, limited liability company or other entity into or with which Tenant
or such subtenant is merged or consolidated or to which substantially all
of Tenant's or such subtenant's assets, stock, partnership, membership or other
ownership interests are sold or transferred or to any corporation, partnership,
limited liability company or other entity which controls,  is
controlled by or is under common control with Tenant or such subtenant, provided
that in any such event (i) the successor to Tenant or such subtenant has a net
worth computed in accordance with generally accepted accounting principles at
least equal to the greater of (1) the net worth of Tenant or such subtenant
immediately prior to such merger, consolidation or transfer, or (2) the net
worth of Tenant herein named on the date of this Lease or the net worth of such
subtenant on the date of such sublease, and ii) proof satisfactory to Landlord
of such net worth shall have been delivered to Landlord at least ten (10) days
prior to the effective date of any such transaction.

     

    Section
11.12. Any assignment or transfer, whether made with Landlord's consent pursuant
to Section 11.07 or without Landlord's consent pursuant to Section 11.11, shall
be made only if, and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord an agreement in form and substance
reasonably satisfactory to Landlord whereby the assignee shall assume the
obligations of this Lease on the part of Tenant to be performed or observed and
whereby the assignee shall agree that the provisions in this Article 11 shall,
notwithstanding such assignment or transfer, continue to be binding upon it in
respect of all future assignments and transfers.  The original named
Tenant covenants that, notwithstanding any assignment or transfer, whether or
not in violation of the provisions of this Lease, and notwithstanding the
acceptance of minimum rent and/or additional rent by Landlord from an
assignee, transferee, or any other party, the original named Tenant shall remain
fully liable for the payment of the minimum rent and additional rent and for the
other obligations of this Lease on the part of Tenant to be performed or
observed.

    
      
         

      

      
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    Section
11.13. The joint and several liability of Tenant and any immediate or remote
successor in interest of Tenant and the due performance of the obligations of
this Lease on Tenant's part to be performed or observed shall not be discharged,
released or impaired in any respect by any agreement or stipulation made by
Landlord extending the time of, or modifying any of the obligations of, this
Lease, or by any waiver or failure of Landlord to enforce any of the obligations
of this Lease.

     

    Section
11.14. The listing of any name other than that of Tenant, whether on the doors
of the Demised Premises, or the Building directory, if any, or otherwise, shall
not operate to vest any right or interest in this Lease or in the Demised
Premises, nor shall it be deemed to be the consent of Landlord to any assignment
or transfer of this Lease, to any sublease of the Demised Premises, or to the
use or occupancy thereof by others.

     

    ARTICLE
12

     

    Liability
and Indemnity by Landlord and Tenant

     

    Section
12.01. Tenant shall indemnify Landlord against and save Landlord harmless from
any liability to and claim by or on behalf of any person, firm, governmental
authority, corporation or entity for personal injury, death or property damage,
arising:

     

    (a)           from
the negligent acts or omissions of Tenant, or from any work whatsoever done or
omitted to be done by Tenant (to the extent that Tenant is obligated to perform
such work under the terms hereunder), its employees, agents, contractors,
customers, invitees or visitors, or from any accident thereat; and

     

    (b)           from
any breach or default by Tenant of and under any of the terms, covenants and
conditions of this Lease on Tenant’s part to be performed.

     

    Tenant
also shall indemnify Landlord against and save Landlord harmless from all costs,
reasonable counsel fees, expenses and penalties incurred by Landlord in
connection with any such liability or claim except to the extent such liability
or claim incurred as a result of Landlord’s negligence or willful
misconduct.

     

    If any
action or proceeding shall be brought against either Landlord in connection with
any such liability or claim pursuant to subparagraphs (a) or (b) hereinabove,
Tenant, on notice from Landlord, shall defend such action or
proceeding,  at Tenant’s expense, by counsel reasonably satisfactory
to the Landlord, or by the attorney for Tenant’s insurance carrier whose
insurance policy covers the liability or claim.

    
      
         

      

      
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    Section
12.02. Landlord shall not be liable for any damage to property of Tenant or of
others entrusted to employees of the Building, nor for the loss of or damage to
any property of Tenant by theft or otherwise, except if due to the negligence or
willful act of Landlord, its agents, contractors or employees.  Except
as otherwise expressly provided elsewhere in this Lease, Landlord and its agents
shall not be liable for any injury or damage to persons or property resulting
from fire, explosion, falling plaster, steam, gas, electricity, water, rain or
snow or leaks from any part of the Building or from the pipes, appliances or
plumbing works or from the roof, street or sub-surface or from any other place
or by dampness or by any other cause of whatsoever nature, except if due to the
negligence or willful acts of Landlord, its agents, contractors or employees;
nor shall Landlord be liable for any such damage caused by other tenants or
persons in the Building or caused by operations in construction of any public or
quasi-public work; nor shall Landlord be liable for any non-structural latent
defect in the Demised Premises or any latent defect in the
Building.  If, at any time any windows of the Demised Premises are
permanently closed, darkened or bricked up by reason of the requirements of law
or temporarily closed or darkened by reason of repairs, alterations or
maintenance by Landlord, Landlord shall not be liable for any damage Tenant may
sustain thereby and Tenant shall not be entitled to any compensation therefor
nor abatement of rent nor shall the same release Tenant from its obligations
hereunder nor constitute an eviction.

     

    Tenant
shall reimburse and compensate Landlord, as additional rent, within ten (10)
days after rendition of a statement for all expenditures made and for all
losses, liabilities, claims, damages, fines, penalties and expenses incurred by
Landlord arising from any default by Tenant under this Lease.

     

    Tenant
shall give prompt notice to Landlord upon its actual discovery of accidents in
the Demised Premises.

     

    Section
12.03. If in this Lease it is provided that Landlord's consent or approval as to
any matter will not be unreasonably withheld, and it is established by a court
or body having final jurisdiction thereover that Landlord has been unreasonable,
the only effect of such finding shall be that Landlord shall be deemed to have
given its consent or approval; but Landlord shall not be liable to Tenant in any
respect for money damages by reason of withholding its consent.

    
      
         

      

      
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    ARTICLE
13

     

    Moving of Heavy
Equipment

     

    Tenant
shall not move any safe, heavy equipment or bulky matter in or out of the
Building without Landlord's written consent, which shall not be unreasonably
withheld.  If the movement of such items requires special handling,
Tenant agrees to employ only persons holding a Master Rigger's License to do
said work and all such work shall be done in full compliance with the
Administrative Code of the City of New York and other municipal
requirements.  All such movements shall be made during hours which
will not materially interfere with the normal operations of the Building, and
all damage caused by such movement shall be promptly repaired by Tenant at
Tenant's expense.

     

    ARTICLE
14

     

    Condemnation

     

    Section
14.01. In the event that the whole of the Demised Premises shall be condemned or
taken in any manner for any public or quasi-public use, this Lease and the term
and estate hereby granted shall forthwith cease and terminate as of the date of
vesting of title.  In the event that only a part of the Demised
Premises shall be so condemned or taken, then, effective as of the date of
vesting of title, the minimum rent and additional rent hereunder for such part
shall be equitably abated and this Lease shall continue as to such part not so
taken.  In the event that only a part of the Building shall be so
condemned or taken, then (a) if substantial structural alteration or
reconstruction of the Building shall, in the opinion of Landlord, be necessary
or appropriate as a result of such condemnation or taking (whether or not the
Demised Premises be affected), Landlord may, at its option, terminate this Lease
and the term and estate hereby granted as of the date of such vesting of title
by notifying Tenant in writing of such termination within sixty (60) days
following the date on which Landlord shall have received notice of the vesting
of title, or (b) if Landlord does not elect to terminate this Lease, as
aforesaid, this Lease shall be and remain unaffected by such condemnation or
taking, except that the minimum rent and additional rent shall be abated to the
extent, if any, hereinbefore provided.  In the event that only a part
of the Demised Premises shall be so condemned or taken and this Lease and the
term and estate hereby granted are not terminated as hereinbefore provided,
Landlord, out of the portion of the award allocated for such purpose and to the
extent such award is sufficient, will restore with reasonable diligence the
remaining structural portions of the Demised Premises as nearly as practicable
to the same condition as it was in prior to such condemnation or
taking.

     

    Section
14.02. In the event of termination in any of the cases hereinabove provided,
this Lease and the term and estate hereby granted shall expire as of the date of
such termination with the same effect as if that were the Expiration Date and
the rent hereunder shall be apportioned as of such date.

    
      
         

      

      
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    Section
14.03. In the event of any condemnation or taking hereinabove mentioned of all
or a part of the Building, Landlord shall be entitled to receive the entire
award in the condemnation proceeding, including any award made for the value of
the estate vested by this Lease in Tenant, and Tenant hereby expressly
assigns to Landlord any and all right, title and interest of Tenant now or
hereafter arising in or to any such award or any part thereof, and Tenant shall
be entitled to receive no part of such award.  Notwithstanding the
foregoing, Tenant may make a separate claim for Tenant's moveable trade fixtures
and moving expenses, provided the same shall not affect or reduce Landlord's
award.

     

    ARTICLE
15

     

    Entry,
Right to Change Public Portions of the Building

     

    Section
15.01. Tenant shall permit Landlord to erect, use and maintain pipes and
conduits in and through the walls, within the ceiling or below the floors of the
Demised Premises, provided that such pipes and conduits shall be concealed
inside the walls and/or ceilings of the Demised Premises.  Landlord,
or its agents or designee shall, upon reasonable prior oral or written notice to
Tenant (unless in the event of emergency, in which case no such notice shall be
required) have the right to enter the Demised Premises during normal business
hours for the purpose of making such repairs or alterations as Landlord shall
desire, shall be required or shall have the right to make under the provisions
of this Lease, provided that Landlord shall use commercially reasonable efforts
to minimize any interference with Tenant's use of the Demised Premises; and
shall also have the right (on prior reasonable notice and at reasonable times)
to enter the Demised Premises for the purpose of inspecting them or exhibiting
them to prospective purchasers or to prospective purchasers of the lessee’s
estate under Superior Leases or to prospective mortgagees or to prospective
assignees of any such mortgagees.  Landlord shall, during the progress
of any such work in the Demised Premises, be allowed to take, but in no event
shall store, all material into and upon the Demised Premises that may be
required for the repairs or alterations above mentioned without the same
constituting an eviction of Tenant in whole or in part and the rent reserved
shall in no wise abate, except as otherwise provided in this Lease, while said
repairs or alterations are being made.

     

    Section
15.02. During the six (6) months prior to the expiration of the term of this
Lease, Landlord may exhibit the Demised Premises to prospective
tenants.

     

    Section
15.03. Landlord shall have the right at any time without thereby creating an
actual or constructive eviction or incurring any liability to Tenant therefor,
to change the arrangement or location of such of the following as are not
contained within the Demised Premises: entrances, passageways, doors and
doorways, corridors, elevators, stairs, toilets, and other like public service
portions of the Building, provided that access to the Demised Premises shall not
be materially impaired as a result of such change.  All parts (except
surfaces facing the interior of the Demised Premises) of all walls, windows and
doors bounding the Demised Premises (including exterior Building walls, exterior
core corridor walls, exterior doors and entrances, all space in or adjacent to
the Demised Premises used for shafts, stacks, stairways, chutes, pipes,
conduits, ducts, fan rooms, heating, air cooling, plumbing and other
mechanical facilities, service closets and other Building facilities are not
part of the Demised Premises and Landlord shall have the use thereof, as well as
access thereto through the Demised Premises for the purposes of operation,
maintenance, alteration and repair, upon reasonable prior notice (unless in the
event of an emergency, in which case no notice shall be required) and otherwise
subject to the terms set forth herein.

    
      
         

      

      
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    Section
15.04. Landlord shall have the right at any time to name the Building as it
desires and to change any and all such names at any time
thereafter.

     

    ARTICLE
16

     

    Conditional
Limitations

     

    Section
16.01. If at any time during the term of this Lease:

     

    (a)           Tenant
shall file a petition in bankruptcy or insolvency or for reorganization or
arrangement or for the appointment of a receiver of all or a portion of Tenant's
property, or

     

    (b)           Any
petition of the kind referred to in subdivision (a) of this Section shall be
filed against Tenant and such petition shall not be vacated, discharged or
withdrawn within ninety (90) days, or

     

    (c)           Tenant
shall be adjudicated a bankrupt by any court, or

     

    (d)           Tenant
shall make an assignment for the benefit of creditors, or

     

    (e)           a
permanent receiver shall be appointed for the property of Tenant by order of a
court of competent jurisdiction by reason of the insolvency of Tenant (except
where such receiver shall be appointed in an involuntary proceeding, if he shall
not be withdrawn within ninety (90) days after the date of his
appointment),

     

    then
Landlord, at Landlord's option, may terminate this Lease on five (5) days'
notice to Tenant, and upon such termination, Tenant shall quit and surrender the
Demised Premises to Landlord.

    
      
         

      

      
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    Section
16.02 (a)        If Tenant assumes this
Lease and proposes to assign the same pursuant to the provisions of the United
States Bankruptcy Code (the "Bankruptcy Code") to any person or entity who shall
have made a bona fide offer to accept an assignment of this Lease on terms
acceptable to Tenant, then notice of such proposed assignment, setting forth (i)
the name and address of such person, (ii) all of the terms and conditions
of such offer, and (iii) the adequate assurance to be provided Landlord to
assure such person's future performance under the Lease, including, without
limitation, the assurance referred to in section 365(b)(1) of the Bankruptcy
Code, shall be given to Landlord by Tenant not later than twenty (20) days after
receipt by Tenant but in no event later than ten (10) days prior to the date
that Tenant shall make application to a court of competent jurisdiction for
authority and approval to enter into such assignment and assumption, and
Landlord shall thereupon have the prior right and option, to be exercised by
notice to Tenant given at any time prior to the effective date of such proposed
assignment, to accept an assignment of this Lease upon the same terms and
conditions and for the same consideration, if any, as the bona fide offer made
by such person, less any brokerage commissions which may be payable out of the
consideration to be paid by such person for the assignment of this
Lease.

     

    (b)           If
this Lease is assigned to any person or entity pursuant to the provisions of the
Bankruptcy Code, any and all monies or other considerations payable or otherwise
delivered in connection with such assignment shall be paid or delivered to
Landlord, shall be and remain the exclusive property of Landlord and shall not
constitute property of Tenant or of the estate of Tenant within the meaning of
the Bankruptcy Code.  Any and all monies or other considerations
constituting Landlord's Property under the preceding sentence not paid or
delivered to Landlord shall be held in trust for the benefit of Landlord and
shall be promptly paid to Landlord.

     

    (c)           Any
person or entity to which this Lease is assigned pursuant to the provisions of
the Bankruptcy Code, shall be deemed without further act or deed to have assumed
all of the obligations arising under this Lease on and after the date of such
assignment.  Any such assignee shall upon demand execute and deliver
to Landlord an instrument confirming such assumption.

     

    (d)           Nothing
contained in this Section shall, in any way, constitute a waiver of the
provisions of this Lease relating to assignment.  Tenant shall not, by
virtue of this Section, have any further rights relating to assignment other
than those granted in the Bankruptcy Code.

     

    (e)           Notwithstanding
anything in this Lease to the contrary, all amounts payable by Tenant to or on
behalf of Landlord under this Lease, whether or not expressly denominated as
rent, shall constitute rent for the purposes of Section 502(b)(6) of the
Bankruptcy Code.

     

    (f)           The
term "Tenant" as used in this Section includes any guarantor of this Lease, or
any, trustee, debtor in possession, receiver, custodian or other similar
officer.

    
      
         

      

      
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    Section
16.03. If this Lease shall terminate pursuant to the provisions of Section
16.01:

     

    (a)           Landlord
shall be entitled to recover from Tenant arrears in minimum rent and additional
rent and, in addition thereto as liquidated damages, an amount equal to the
difference between the minimum rent and additional rent for the unexpired
portion of the term of this Lease which had been in force immediately prior to
the termination effected under Section 16.01 of this Article and the fair and
the reasonable rental value of the Demised Premises, on the date of termination,
for the same period, both discounted at the rate of eight (8%) percent per annum
to the date of termination; or

     

    (b)           Landlord
shall be entitled to recover from Tenant arrears in minimum rent and additional
rent and, in addition thereto as liquidated damages, an amount equal to the
maximum allowed by statute or rule of law in effect at the time when and
governing the proceedings in which such damages are to be proved, whether or not
such amount be greater or less than the amount referred to in subdivision (a) of
this Section.

     

    Section
16.04. (a) (i) If Tenant shall fail to make any payment of any minimum rent or
additional rent when the same becomes due and payable, or (ii) if the Demised
Premises become vacant or deserted, or if Tenant shall fail to cancel or
discharge any mechanic's lien or other lien within the time period as provided
in Section 17.02, or (iii) if Tenant shall fail to deliver an estoppel
certificate as provided in Article 26, and if any of the foregoing defaults
shall continue for a period of fifteen (15) days after notice thereof by
Landlord, or

     

    (b)           If
Tenant shall be in default in the performance of any of the other terms,
covenants and conditions of this Lease and such default shall not have been
remedied within thirty (30) days after notice by Landlord to Tenant specifying
such default and requiring it to be remedied; or where such default reasonably
cannot be remedied within such period of thirty (30) days, if Tenant shall not
have commenced the remedying thereof within such period of time and shall not be
proceeding with due diligence to remedy it,

     

    then
Landlord, at Landlord's election, may terminate this Lease on ten (10) days'
notice to Tenant, and upon such termination Tenant shall quit and surrender the
Demised Premises to Landlord.

     

    Section
16.05. If this Lease shall terminate as provided in this Article or if Tenant
shall be in default in the payment of minimum rent or additional rent when the
same become due and payable, and such default shall continue for a period of
fifteen (15) days after notice by Landlord to Tenant,

    
      
         

      

      
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    (a)           Landlord
may 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, by force or otherwise,
without being liable for any damages therefor, and

     

    (b)           Landlord
may re-let the whole or any part of the Demised Premises for a period equal to,
greater or less than the remainder of the then term of this Lease, at such
rental and upon such terms and conditions as Landlord shall deem reasonable to
any tenant it may deem suitable and for any use and purpose it may deem
appropriate.  Landlord shall not be liable in any respect for failure
to re-let the Demised Premises or, in the event of such re-letting, for failure
to collect the rent thereunder and any sums received by Landlord on a re-letting
in excess of the rent reserved in this Lease shall belong to
Landlord.

     

    Section
16.06. If this Lease shall terminate as provided in this Article or by summary
proceedings (except as to any termination under Section 16.01), Landlord shall
be entitled to recover from Tenant as damages, in addition to arrears in minimum
rent and additional rent,

     

    (a)           an
amount equal to (i) all expenses incurred by Landlord in recovering possession
of the Demised Premises and in connection with the re-letting of the Demised
Premises, including, without limitation, the cost of repairing, renovating or
remodeling the Demised Premises, (ii) the cost of performing any work required
to be done by Tenant under this Lease, (iii) the cost of placing the Demised
Premises in the same condition as that in which Tenant is required to surrender
them to Landlord under this Lease, and (iv) all brokers' commissions and legal
fees incurred by Landlord in re-letting the Demised Premises, which amounts set
forth in this subdivision (a) shall be due and payable by Tenant to Landlord at
such time or times as they shall have been incurred; and

     

    (b)           an
amount equal to the deficiency between the minimum rent and additional rent
which would have become due and payable had this Lease not terminated and the
net amount, if any, of rent collected by Landlord on re-letting the Demised
Premises.  The amounts specified in this subdivision shall be due and
payable by Tenant on the several days on which such minimum rent and additional
rent would have become due and payable had this Lease not
terminated.  Tenant consents that Landlord shall be entitled to
institute separate suits or actions or proceedings for the recovery of such
amount or amounts, and Tenant hereby waives the right to enforce or assert the
rule against splitting a cause of action as a defense thereto.

    
      
         

      

      
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    Section
16.07. Tenant, for itself and for all persons claiming through or under it,
hereby waives any and all rights which are or may be conferred upon Tenant by
any present or future law to redeem the Demised Premises after a warrant to
dispossess shall have been issued or after judgment in an action of ejectment
shall have been made and entered.

     

    Section
16.08. The words "re-enter" and "re-entry", as used in this Article, are not
restricted to their technical legal meanings.

     

    Section
16.09. Landlord shall not be required to give any notice of its intention to
re-enter, except as otherwise provided in this Lease.

     

    Section
16.10. In any action or proceeding brought by Landlord against Tenant,
predicated on a default in the payment of minimum rent or additional rent,
Tenant shall not have the right to and shall not interpose any set-off or
counterclaim of any kind whatsoever, other than a claim which would be legally
barred for failure to raise as a counterclaim in such action or proceeding. If
Tenant has any claim, Tenant shall be entitled only to bring an independent
action therefor; and if such independent action is brought by Tenant, Tenant
shall not be entitled to and shall not consolidate it with any pending action or
proceeding brought by Landlord against Tenant for a default in the payment of
minimum rent or additional rent.

     

    ARTICLE
17

     

    Mechanic's
Liens

     

    Section
17.01. If, subject to and notwithstanding Landlord's consent to the extent
required under this Lease, Tenant shall cause any changes, alterations,
additions, improvements, installations or repairs to be made to or at the
Demised Premises or shall cause any labor to be performed or material to be
furnished in connection therewith, neither Landlord nor the Demised Premises,
under any circumstances, shall be liable for the payment of any expense incurred
or for the value of any work done or material furnished (unless otherwise
expressly provided elsewhere in this Lease), and all such changes, alterations,
additions, improvements, installations and repairs and labor and material shall
be made, furnished and performed upon Tenant's credit alone and at Tenant's
expense, and Tenant shall be solely and wholly responsible to contractors,
laborers, and materialmen furnishing and performing such labor and
material.  Nothing contained in this Lease shall be deemed or
construed in any way as constituting the consent or request of Landlord, express
or implied, to any contractor, laborer or materialman to furnish or perform any
such labor or material.

    
      
         

      

      
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    Section
17.02. If, because of any act or omission (or alleged act or omission) of Tenant
any mechanic's or other lien, charge or order for the payment of money shall be
filed against the Demised Premises or the Building or Landlord's estate as
tenant under any Superior Lease (whether or not such lien, charge or order is
valid or enforceable as such), for work claimed to have been for, or materials
furnished to, Tenant, Tenant, at Tenant's expense, shall cause it to be
cancelled or discharged of record by bonding or otherwise within sixty (60) days
after such filing, and Tenant shall indemnify Landlord against and save Landlord
harmless from and shall pay all reasonable costs, expenses, losses, fines and
penalties, including, without limitation, reasonable attorneys' fees, resulting
therefrom.

     

    ARTICLE
18

     

    Landlord's Right to Perform Tenant's
Obligations

     

    If Tenant
shall default in the performance of any of the terms or covenants and conditions
of this Lease, and such default shall remain uncured beyond the expiration of
any applicable notice and cure period, Landlord, without being under any
obligation to do so and without hereby waiving such default, may remedy such
default for the account and at the reasonable expense of Tenant.  Any
payment made or expense incurred by Landlord for such purpose (including, but
not limited to, reasonable attorneys' fees), shall be deemed to be additional
rent hereunder and shall be paid by Tenant to within ten (10) days after demand,
or at Landlord's election, added to any subsequent installment or installments
of minimum rent.

     

    ARTICLE
19

     

    Covenant of Quiet
Enjoyment

     

    Landlord
covenants that upon Tenant paying the minimum rent and additional rent and
observing and performing all the terms, covenants and conditions of this Lease
on Tenant's part to be observed and performed, Tenant may peaceably and quietly
enjoy the Demised Premises, subject nevertheless to the terms and conditions of
this Lease.

     

    ARTICLE
20

     

    Excavation

     

    In the
event that construction is to be commenced or an excavation is made or
authorized for building or other purposes upon land adjacent to the Building,
Tenant shall, if necessary, afford to the person or persons causing or
authorized to commence construction or cause such excavation or to engage in
such other purpose, license to enter upon the Demised Premises for the purpose
of doing such work as shall reasonably be necessary to protect or preserve the
Building, from injury or damage and to support the Building and any new
structure to be built by proper foundations, pinning and/or underpinning,
or otherwise.

    
      
         

      

      
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    ARTICLE
21

     

    Services and
Equipment

     

    Section
21.01. So long as Tenant is not in default under any of the terms, covenants and
conditions of this Lease, Landlord shall, at its cost and expense:

     

    (a)           Provide
operatorless passenger elevator service to the Demised Premises on Mondays
through Fridays from 8:00 A.M. to 6:00 P.M., holidays excepted.  A
passenger elevator will be available at all other times to serve the Demised
Premises.  A freight elevator shall be available Mondays through
Fridays, only from 8:00 A.M. to 5:00 P.M., excepting Saturdays, Sundays and
holidays.  The freight elevator shall be available on a "first come,
first served" basis during the said days and hours and on a reservation "first
come, first served" basis other than on said days and hours at Landlord's
customary charges therefor.

     

    
      
        
        

      

      
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    (b)           Maintain
and repair the Building standard heating, ventilating and air conditioning
system servicing the Demised Premises (the "HVAC System") installed by Landlord,
except for those repairs which are the obligation of Tenant pursuant to Article
6 of this Lease.  The HVAC System will be operated by Landlord as and
when required by law, or for the comfortable occupancy of the Demised Premises
(as reasonably determined by Landlord) during the applicable seasons on Mondays
through Fridays, from 8:00 A.M. to 8:00 P.M.; excepting Saturdays, Sundays and
holidays, provided that Tenant shall draw and close the draperies or blinds for
the windows of the Demised Premises whenever the HVAC system is in operation and
the position of the sun so requires and shall, at all times, cooperate fully
with Landlord and abide by all of the reasonable Rules and Regulations which
Landlord may prescribe for the proper functioning of the HVAC
System.  In the event that Tenant requires HVAC service outside of the
aforementioned days and times, Landlord may charge Tenant at the initial rate of
$400.00 per hour for such off-hour service, as increased from time to time by
Landlord. Landlord agrees to operate the HVAC System servicing the Demised
Premises in accordance with their design criteria unless energy and/or water
conservation programs, guidelines or laws and/or requirements of public
authorities, shall provide for any reduction in operations below said design
criteria in which case such equipment shall be operated so as to provide reduced
service in accordance therewith.  Tenant expressly acknowledges that
some or all windows are or may be hermetically sealed and will not open and
Landlord makes no representation as to the habitability of the Demised Premises
at any time the HVAC System is not in operation. Tenant
hereby expressly waives any claims against Landlord arising out of the cessation
of operation of the HVAC System, or the suitability of the Demised Premises when
the same is not in operation, whether due to normal scheduling or the reasons
set forth in Section 21.03.  Landlord will not be responsible for the
failure of the HVAC System if such failure results from the occupancy of the
Demised Premises by more than an average of one (1) person for each one hundred
(100) square feet in any separate room or area or if Tenant shall install and
operate machines, incandescent lighting and appliances with a total connected
electrical load in excess of the Building's electrical specifications, as
determined by Landlord's consulting engineers.  If Tenant shall occupy
the Demised Premises at an occupancy rate of greater than that for which the
HVAC System was designed, or if the total connected electrical load is in excess
of the Building's electrical specifications, as reasonably determined by
Landlord's consulting engineers, or if Tenant's partitions shall be arranged by
Tenant in such a way as to interfere with the normal operation of the HVAC
System, Landlord may elect to make changes to the HVAC System or the ducts
through which it operates required by reason thereof, and the cost thereof shall
be reimbursed by Tenant to Landlord, as additional rent, within twenty (20) days
after presentation of a bill therefor.  Landlord, throughout the term,
upon reasonable prior notice, and during business hours shall have free access
to all mechanical installations of Landlord, including but not limited to
air-cooling, fan, ventilating and machine rooms and electrical closets, and
Tenant shall not construct partitions or other obstructions that may interfere
with Landlord's free access thereto, or interfere with the moving of Landlord's
equipment to and from the enclosures containing said
installations.  Neither Tenant nor any person or entity within
Tenant's control shall at any time enter the said enclosures or tamper with,
adjust, touch or otherwise in any manner affect said mechanical installations,
except as set forth herein with respect to the thermostatic controls within the
Demised Premises.

     

    (c)           Provide
Building standard cleaning services in Tenant's office space and public portions
of the Building, except no services shall be performed Saturdays, Sundays and
holidays, all in accordance with Schedule D attached hereto.  If,
however, any additional cleaning of the Demised Premises is to be done by
Tenant, it shall be done at Tenant's sole expense, in a manner reasonably
satisfactory to Landlord and no one other than persons approved by Landlord
shall be permitted to enter the Demised Premises or the Building for such
purpose.   Tenant, at its own cost, may utilize its own employees
or outside contractors to perform additional cleaning services in the Demised
Premises, provided such employees or outside contractors do not cause any labor
disruption, dispute or disturbance in or around the Building or violate
Landlord’s union contracts affecting the Building.  If Tenant shall
require additional cleaning services, Tenant may award a contract for
such services to any contractor that is approved by Landlord; provided,
however, that prior to making such award, Tenant shall inform Landlord of the
terms upon which such contractor shall provide such additional cleaning services
and, in the event that Landlord’s designated contractor can provide such
additional cleaning services on equal or better terms, Tenant shall award such
contract to Landlord’s designated contractor.  Tenant shall pay for
the cost of the services performed by such designated contractor within ten (10)
days after being billed.

    
      
         

      

      
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    (d)           Furnish
water for lavatory and cleaning purposes.  If Tenant requires, uses or
consumes water in excess of the amounts ordinarily required for such purposes,
Landlord may install a meter or meters or other means to measure Tenant's water
consumption, and Tenant shall reimburse Landlord for the cost of the meter or
meters and the installation thereof, and shall pay for the maintenance of said
meter equipment and/or pay Landlord's cost of other means of measuring such
water consumption by Tenant.  Tenant shall pay to Landlord on demand
the cost of all water consumed as measured by said meter or meters or as
otherwise measured, including sewer rents.

     

    (e)           If
Tenant shall require and request any of the foregoing services at times other
than above provided, and if such request is made at least twenty-four (24) hours
prior to the time when such additional services are required, Landlord will
provide them and Tenant shall pay to Landlord promptly the charges therefore
following receipt of an invoice by Tenant at the then Building standard rate
charged to other tenants in the Building, or such other rate as may be specified
in this Lease.

     

    Section
21.02. Holidays shall be deemed to mean all federal holidays, state holidays and
Building Service Employees Union Contract holidays.

     

    Section
21.03. Landlord reserves the right to interrupt, curtail or suspend the services
required to be furnished by Landlord under this Lease when necessary by reason
of accident, emergency, mechanical breakdown or when required by any law, order
or regulation of any Federal, State, County or Municipal authority, or for any
other cause beyond the control of Landlord.  Landlord shall use due
diligence to complete all required repairs or other necessary work as quickly as
possible so that Tenant's inconvenience resulting therefrom may be for as short
a period of time as circumstances will reasonably permit.  Tenant
shall not be entitled to nor shall Tenant make claim for any diminution or
abatement of minimum rent or additional rent or other compensation, nor shall
this Lease or any of the obligations of Tenant be affected or reduced by reason
of such interruption, curtailment, suspension, work or
inconvenience.

     

    Section
21.04. Tenant shall reimburse Landlord promptly for the actual out-of-pocket
cost to Landlord of removal from the Demised Premises and the Building of
any refuse and rubbish of Tenant not covered by the Cleaning Specifications and
Tenant shall pay all bills therefor when rendered.

    
      
         

      

      
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    Section
21.05. If Tenant shall request Landlord to furnish any services in addition to
those hereinabove provided or perform any work not required under this Lease,
and Landlord agrees to furnish and/or perform the same, Tenant shall pay to
Landlord promptly in advance the charges therefor, which charges are deemed to
be additional rent and payable as such. Subject to Section 5.01, Tenant will
have the right to perform Alterations in the Demised Premises by contractors
selected by Tenant and approved by Landlord.

     

    Section
21.06. Tenant shall have the right to one (1) sign in the elevator lobby and up
to ten (10) listings on the Building directory located in the lobby of the
Building.

     

    Section
21.07. If Landlord shall have failed to provide elevator, heating or air
conditioning services, as provided in this Article (the "Interruption"), and the
Interruption shall have (i) prevented the operation of Tenant's business in the
Demised Premises, and (ii) continued for a period in excess of thirty (30)
consecutive days following receipt by Landlord of notice from Tenant describing
in detail the Interruption (the Interruption that has satisfied both of the
foregoing conditions being referred to hereinafter as a "Material
Interruption"), then Tenant shall be entitled to an abatement of the minimum
rent only, provided that Tenant shall not have used all or any part of the
Demised Premises. Any such minimum rent abatement shall begin on the thirty
first (31st)
consecutive day of such Material Interruption and shall end upon the date such
Material Interruption has ended. Notwithstanding the foregoing, Tenant shall not
be entitled to any such rent abatement if (i) Tenant was able to use any part of
the Demised Premises, (ii) the Interruption shall have been caused by an act or
omission in violation of this Lease by or the negligence of Tenant, or of Tenant
agents, servants, employees or contractors, or (ii) the Interruption arises from
or relates to any unavoidable delays, including any matter beyond Landlord’s
reasonable control.

     

    ARTICLE
22

     

    Escalation

     

    Section
22.01. Taxes.  Tenant shall pay to Landlord, as additional rent, tax
escalation in accordance with this Section:

     

    (a)           Definitions:  For
the purpose of this Section, the following definitions shall apply:

     

    (i)  
The term "Tax Base Factor" shall mean the Real Estate Taxes for the Building
Project for the period from July 1, 2010 to June 30, 2011, as finally
determined.

    
      
         

      

      
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    (ii)  
The term "The Building Project" shall mean the real property known as Unit B of
The Fifth Win Condominium, with all improvements erected on the Land as more
particularly described in Schedule B of this Lease

     

    (iii)  
The term "Comparative Tax Year" shall mean the New York City real estate tax
year commencing on July 1, 2011 and each subsequent New York City real estate
tax year.  If the present use of July 1-June 30 New York City real
estate tax year shall hereafter be changed, then such changed tax year shall be
used with appropriate adjustment for the transition.

     

    (iv)  
The term "Real Estate Taxes" shall mean the total of all taxes and special or
other assessments and charges of any Special Business Improvement District
levied, assessed or imposed at any time by any governmental authority: (a) upon
or against the Building Project, and (b) in connection with the receipt of
income or rents from the 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.  Income, franchise, transfer,
inheritance, corporate, mortgage recording or capital stock taxes of Landlord,
or penalties or interest thereon, shall be excluded from "Real Estate Taxes" for
the purposes hereof.  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 the lessor under a Superior Lease (as
hereinafter defined) and/or Landlord in substitution in whole or in part for the
Real Estate Taxes, or in lieu of or addition to or increase of Real Estate
Taxes, then such franchise, income, transit, profit or other tax or governmental
imposition shall be included within "Real Estate Taxes." Tenant acknowledges
that the Tax Escalation Payment (as hereinafter defined) constitutes a method by
which Landlord is seeking to compensate for increases in expenses and that the
Tax Escalation Payment shall be calculated and paid by Tenant to Landlord
whether or not Real Estate Taxes have already been paid by
Landlord.

     

    (v) The
term "the Percentage" for purposes of computing tax escalation, shall mean
4.2%.

    
      
         

      

      
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    (b)           (i)   
 Commencing July 1 ,2011, in the event that the Real Estate Taxes payable
for any Comparative Tax Year shall exceed the Tax Base Factor, Tenant shall pay
to Landlord, as additional rent for such Comparative Tax Year, an amount for tax
escalation ("Tax Escalation Payment") equal to the Percentage of the
excess.  Before or after the start of each Comparative Tax Year,
Landlord shall furnish to Tenant a statement of the Tax Escalation Payment
payable for such Comparative Tax Year. Tenant shall make its aforesaid Tax
Escalation Payment to Landlord, in installments in the same manner and not later
than thirty (30) days prior to the last date that Real Estate Taxes are payable
by Landlord to the governmental authority.  If a statement is
furnished to Tenant after the commencement of the Comparative Tax Year in
respect of which such statement is rendered, Tenant shall, within ten (10) days
thereafter, pay to Landlord an amount equal to those installments of the total
Tax Escalation Payment then due.  If on the first day of the first
month of any Comparative Tax Year, the amount of the Real Estate Taxes shall not
have been determined by the taxing authority, then the amount of the Real Estate
Taxes payable by Tenant shall be estimated by Landlord based on the amount of
the corresponding Real Estate Taxes for the immediately preceding Comparative
Tax Year. Any such estimated Real Estate Taxes shall be subject to adjustment
when the amount of such Real Estate Taxes shall be determined, and payment or
credit of such adjustment shall be made upon billing by
Landlord.   If, during the term of this Lease, Real Estate Taxes
are required to be paid, in full or in monthly or other installments, on any
other date or dates than as presently required, or if Landlord shall be required
to make monthly deposits of Real Estate Taxes to the holder of any mortgage,
then Tenant's Tax Escalation Payment(s) shall be correspondingly adjusted so
that the same are due to Landlord in corresponding installments not later than
thirty (30) days prior to the last date on which the applicable installment of
such Real Estate Taxes shall be due and payable to the governmental authority or
such mortgagee.

     

    (ii)   
 If in any tax certiorari proceeding regarding Real Estate Taxes payable
for any Comparative Tax Year or in otherwise establishing such taxes, Landlord
has incurred expenses for legal and/or consulting services rendered in applying
for, negotiating or obtaining a reduction of the assessment upon which the Real
Estate Taxes are predicated, Tenant shall pay an amount equal to the
Percentage of such expenses.

    
      
         

      

      
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    (iii)  
The statements of the Tax Escalation Payment to be furnished by Landlord as
provided above shall constitute a final determination as between Landlord and
Tenant of the Tax Escalation Payment for the periods represented thereby, except
for mathematical error or other error in computation.

     

    (iv)  
In no event shall the fixed minimum rent under this Lease be reduced by virtue
of this Section 22.01.

     

    (v)  
Upon the date of any expiration or termination of this Lease, 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 the Tax Escalation Payment for the
Comparative Tax 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 and paid, or due and payable by Landlord to Tenant if
the amount paid by Tenant exceeded such proportionate share. The said
proportionate share shall be based upon the length of time that this Lease shall
have been in existence during such Comparative Tax Year.  Prior to or
promptly after said expiration or termination, Landlord shall compute the Tax
Escalation Payment due from or owed to Tenant, as aforesaid and Tenant shall
promptly pay Landlord any amount unpaid.  If Landlord shall receive a
refund or a tax credit of any amount of Real Estate Taxes for any Comparative
Tax Year for which Tenant has made a payment, Landlord shall pay to Tenant
within fifteen (15) days of its receipt of such refund or credit the Percentage
of any such refund, less the Percentage of any legal fees and other expenses
provided for in Section 22.01(b)(ii) to the extent the same have not theretofore
been paid by Tenant.

     

    (vi)  
Landlord's and Tenant's obligations to make the adjustments referred to in
subdivision (v) above shall survive any expiration or termination of this
Lease.

     

    (vii)  
Any delay or failure of Landlord in billing any Tax Escalation Payment
hereinabove provided shall not constitute a waiver of or in any way impair the
continuing obligation of Tenant to pay such Tax Escalation Payment
hereunder.

    
      
         

      

      
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    (viii)  
The parties acknowledge that the ICAP Program is not currently in effect at the
Building. Notwithstanding any language to the contrary in this Lease, Landlord
and Tenant agree that for the purposes of this Section 22.01, Real Estate Taxes
and Tax Escalation Payments shall be calculated without regard to any
deductions, credits, abatements, or deferral of Real Estate taxes which Landlord
may receive pursuant to Sections 489aaaaaa through 489kkkkkk, authorized by
Title 2-F of Article 4 of the New York Real Property Tax Law and any and all
rules and regulations promulgated thereunder, including any successor statute
(herein collectively called the “ICAP Program”).

     

    Section
22.02. Porter's Wage Rate.  Tenant shall pay to the Landlord, as
additional rent, a porter's wage rate escalation in accordance with this
Section:

     

    (a)           For
the purpose of this Section, the following definitions shall apply:

     

    (i)  
"Wage Rate(s)" shall mean the minimum regular hourly rate of wages in effect,
from time to time, during each calendar year (whether paid by Landlord or any
contractor employed by Landlord) computed as paid over a forty hour week to
Porters in Class A office buildings pursuant to an Agreement between Realty
Advisory Board on Labor Relations, Incorporated, or any successor thereto, and
Local 32B-32J of the Building Service Employees International Union, AFL-CIO, or
any successor thereto; and provided, however, that if there is no such agreement
in effect prescribing a wage rate for Porters, computations and payments shall
thereupon be made upon the basis of the regular hourly wage rate actually
payable in effect as of January 1st of each year, and provided, however, that if
in any year during the term, the regular employment of Porters shall occur on
days or during the hours when overtime or other premium pay rates are in effect
pursuant to such Agreement, then the term "hourly rate of wages" as used herein
shall be deemed to mean the average hourly rate for the hours in a calendar week
during which Porters are regularly employed (e.g., if pursuant to an agreement
between Realty Advisory Board and the Local the regular employment of Porters
for forty hours during a calendar week is at a regular hourly wage rate of
$3.00 for the first thirty hours, and premium or overtime hourly wage rate of
$4.50 for the remaining ten hours, then the hourly rate of wages under this
Article during such period shall be the total weekly rate of $135.00 divided by
the total number of regular hours of employment, forty or
$3.375).  Notwithstanding the foregoing, if at any time such hourly
wage rate is different for new hire and old hire Porters, then thereafter such
hourly wage rate shall be based on the weighted average of the wage rates for
the different classifications of Porters.

    
      
         

      

      
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    (ii)   
"Base Wage Rate" shall mean the Wage Rate in effect on January 1,
2010.

     

    (iii)  
The term "Porters" shall mean that classification of non-supervisory employees
employed in and about the Building who devote a major portion of their time to
general cleaning, maintenance and miscellaneous services essentially of a
non-technical and non-mechanical nature and are the type of employees who are
presently included in the classification of "Class A-Others" in the Commercial
Building Agreement between the Realty Advisory Board and the aforesaid
Union.

     

    (iv)  
The term "minimum regular hourly rate of wages" shall not include any payments
for fringe benefits or adjustments of any kind.

     

    (v)  
The term "Multiplication Factor" shall mean 14,486.

     

    (b)           If
the Wage Rate(s) for any calendar year during the term shall be increased above
the Base Wage Rate, then Tenant shall pay, as additional rent, an amount equal
to the product obtained by multiplying the Multiplication Factor by 100% of the
number of cents (including any fraction of a cent) by which the Wage Rate(s) is
greater than the Base Wage Rate, such payment to be made in equal one-twelfth
(1/12th) monthly installments commencing with the first monthly installment of
minimum rent falling due on or after the effective date of such increase in Wage
Rate(s) (payable retroactive from said effective date) and continuing thereafter
until a new adjustment shall have become effective in accordance with the
provisions of this Article.  Landlord shall give Tenant notice of each
change in Wage Rate(s) which will be effective to create or change Tenant's
obligation to pay additional rent pursuant to the provisions of this Section
22.02 and such notice shall contain Landlord's calculation in reasonable detail
and certified as true by an authorized
partner of Landlord or of its managing agent, of the annual rate of additional
rent payable resulting from such increase in Wage Rate(s). Such amounts shall be
prorated for any partial calendar years during the
term.
 

    
      
         

      

      
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    (c)           Tenant’s
obligations to make the payments referred to in subdivision (b) above shall
survive any expiration or termination of this Lease.

     

    (d)           A
notice with respect to the porter’s wage escalation given by Landlord pursuant
to Section 22(b) hereof shall be binding upon Tenant, except for manifest
error.

     

    (e)           The
"Wage Rate(s)" is intended to be a substitute comparative index of economic
costs and does not necessarily reflect the actual costs of wages or other
expenses of operating the Building.  The Wage Rate(s) shall be used
whether or not the Building is a Class A office building and whether or not
Porters are employed in the Building and without regard to whether such
employees are members of the Union referred to in subsection (a)
hereof.

     

    ARTICLE
23

     

    Electricity

     

    Section
23.01.

     

    (a)           Landlord
shall provide electricity to the Demised Premises on a submetering basis from
the existing risers and switches on the floor.  Tenant’s consumption
of electricity shall be measured by one independent time of day (or use)
submeter, which submeter shall be in working order on the Commencement Date and
shall serve the Demised Premises, and no other tenant, and shall be furnished
and installed by Landlord, at the cost of Tenant, and read by
Landlord.  If Tenant shall require electricity exceeding the available
service capacity, any additional risers, feeders and similar electrical
equipment which may be required, shall be installed by Landlord, at the expense
of Tenant, to and for the use of Tenant in the Demised Premises during the term
hereof.  Landlord represents that the available service capacity of
electricity in the Demised Premises will be not less than eight (8) watts per
usable square foot connected load.  Any riser(s) shall terminate at a
disconnect switch to be located at a point designated by Landlord in electrical
closet(s) on the floor of the Demised Premises.  Such disconnect
switch shall be the sole source from which Tenant is to obtain
electricity.  Such submeter shall at all times be maintained by
Tenant, at its expense, unless damaged due to the negligence of Landlord,
its agents, employees or contractors.  Tenant covenants and agrees to
purchase electric power from Landlord or Landlord’s designated agent at charges,
terms and rates set, from time to time, during the term of this Lease by
Landlord but not more than those specified in the service classification in
effect from time to time pursuant to which Landlord then purchases electric
current from the Electric Service Provider or Alternate Service Provider (as
said terms are hereinafter defined), as the case may be, plus a fee equal to
five (5%) percent of such charges, representing agreed upon administrative and
overhead costs to Landlord.  Bills therefor shall be rendered monthly
or at such other times as Landlord may elect and the amount, as computed from
such meter, shall be deemed to be, and be paid as, additional rent, within ten
(10) days thereafter, without any set-off or deduction.  If any tax is
imposed upon Landlord’s receipt from the sale or resale of electric energy to
Tenant by any federal, state or municipal authority, Tenant covenants and agrees
that, where permitted by law, Tenant's pro rata share of such taxes
shall be passed on to, and included in the bill of, and paid by, Tenant to
Landlord.

    
      
         

      

      
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    (b)           Landlord
has advised Tenant that presently Con Edison ("Electric Service Provider") is
the utility company selected by Landlord to provide electricity service for the
Building.  Notwithstanding the foregoing, if permitted by law,
Landlord shall have the right at any time and from time to time during the term
of this Lease to either contract for service from a different company or
companies providing electricity service (each such company shall hereinafter be
referred to as an "Alternate Service Provider") or continue to contract for
service from the Electric Service Provider.

     

    (c)           Tenant
shall cooperate with Landlord, the Electric Service Provider, and any Alternate
Service Provider at all times and, as reasonably necessary, shall allow
Landlord, Electric Service Provider, and any Alternate Service Provider
reasonable access to the Building's electric lines, feeders, risers, wiring, and
any other machinery within the Demised Premises.

     

    Section
23.02. Landlord shall not be liable in any way for any loss, damage or expense
that Tenant may sustain or incur by reason of or any failure, change,
interruption or defect in the supply or character of electric energy furnished
to the Demised Premises by reason of any requirement, act or omission of the
Electric Service Provider or Alternate Service Provider (as said terms are
hereinafter defined) serving the Building with electricity and no such failure,
change, interruption or defect shall constitute an act of constructive eviction,
in whole or in part, or entitle Tenant to any abatement of minimum rent or
additional rent or relieve Tenant of its obligations under this
Lease.  Tenant shall furnish and install, at its sole cost and
expense, all lighting fixtures, tubes, lamps, bulbs, ballasts and outlets
relating to Tenant’s electrical equipment.

    
      
         

      

      
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    Section
23.03. Tenant's connected electrical load in the Demised Premises, including
lighting, shall not at any time exceed the capacity of any of the electrical
conductors and equipment in or servicing the Demised Premises, such capacity
being eight (8) watts per usable square foot connected load, including lighting.
In order to ensure that such capacity is not exceeded and to avert possible
adverse effect upon the Building electric service, Tenant shall not, without
Landlord's prior consent in each instance, connect any appliances or equipment
other than standard office equipment (computers, copiers, fax machines,
telephones, etc.) to the electric system of the Demised Premises existing on the
Commencement Date.  Should Landlord grant such consent, all additional
risers or other equipment required therefor shall be provided by Landlord and
the cost thereof shall be paid by Tenant, to the extent Tenant's need for
electricity exceeds eight (8) watts per usable square foot.

     

    Section
23.04. Landlord reserves the right to discontinue furnishing electric energy at
any time, whether or not Tenant is in default under this Lease, upon not less
than thirty (30) days' notice to Tenant, provided Landlord discontinues
furnishing electricity to all other tenants in the Building.  If
Landlord exercises such right of discontinuance, this Lease shall continue in
full force and effect and shall be unaffected thereby, except only that, from
and after the effective date of such discontinuance, Landlord shall not be
obligated to furnish electric energy to Tenant.  If Landlord so elects
to discontinue furnishing electric energy to Tenant, Tenant shall arrange to
obtain electric energy directly from the Electric Service Provider or Alternate
Service Provider.  Notwithstanding the foregoing, Landlord shall not
discontinue furnishing electric energy until Tenant is able to obtain such
electric energy directly from said Electric Service Provider or Alternate
Service Provider.  Such electric energy may be furnished to Tenant by
means of the then existing Building system feeders, risers and wiring to the
extent that they are available, suitable and safe for such
purposes.  All meters and additional panel boards, feeders, risers,
wiring and other conductors and equipment which may be required to obtain
electric energy directly from such Electric Service Provider or Alternate
Service Provider company, and which are to be located within the Demised
Premises, shall be installed by Landlord at its sole cost and expense, and
maintained by Tenant at its expense.

     

    ARTICLE
24

     

    Broker

     

    Landlord
and Tenant covenant and represent that the sole brokers who negotiated and
brought about this transaction were CB Richard Ellis, Inc. and Cohen Brothers
Realty Corporation and Landlord agrees to pay a commission therefor as per
separate agreements.  Landlord and Tenant agree to hold the other
harmless against any claims for a brokerage commission arising out of a breach
by the indemnifying party of the representations contained in this
Article.

    
      
         

      

      
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    ARTICLE
25

     

    Subordination
and Ground Lease

     

    Section
25.01. This Lease is subject and subordinate to (a) the lease dated as of July
29, 1986, between Saks & Company, as lessor and Swiss Bank Corporation, New
York Branch, as lessee, as the same is or may hereafter be amended (the “Saks
Lease”), (b) any “New Lease” (as defined in the Saks Lease) hereafter entered
into, as the same may be amended (collectively together with the Saks Lease
called the “Superior Leases”), and (c) to all mortgages (the “Superior
Mortgages”) which may now or hereafter encumber any such Superior Leases and/or
the interest of the lessee under the Superior Lease in and to the Building, and
to all renewals, modifications, amendments, consolidations, replacements or
extensions of any of the foregoing.  This clause shall be
self-operative and no further instrument of subordination shall be
required.  However, in confirmation of such subordination, Tenant, at
any time and from time to time, shall execute promptly, and within fifteen (15)
days of such request, any certificate and document that Landlord may reasonably
request which reasonably evidences such subordination.

     

    Section
25.02. (a) The Tenant covenants and agrees that if by reason of a default under
any Superior Lease, or under any Superior Mortgage, such Superior Lease and the
leasehold estate of the Landlord in the Demised Premises is terminated, or the
lessee’s estate in the Building under a Superior Lease is foreclosed upon or
transferred in lieu of a foreclosure, the Tenant will attorn to the then holder
of the reversionary interest in the premises demised by this Lease or the
foreclosure purchaser or transferee in lieu of foreclosure, as the case may be,
and will recognize such holder, purchaser or transferee as the Tenant's Landlord
under this Lease, unless the lessor under such Superior Lease or the holder of
any such Superior Mortgage, in any proceeding to terminate such Superior Lease
or foreclose such Superior Mortgage, elects to terminate this Lease and the
rights of Tenant hereunder provided, however, the holder of the reversionary
interest or the foreclosure purchaser or transferee in lieu of foreclosure shall
not be (i) liable for any act or omission or negligence of Landlord under this
Lease; (ii) subject to any counterclaim, defense or offset which theretofore
shall have accrued to Tenant against Landlord; (iii) obligated to perform,
undertake or complete any work in the Demised Premises or to prepare it for
occupancy; (iv) bound by any previous modification or amendment of this Lease or
by any previous prepayment of more than one (1) month's rent, unless such
modification or prepayment shall have been approved in writing by the holder of
such Superior Mortgage; (v) obligated to repair the Demised Premises, or the
Building, or any part thereof, in the event of any damage beyond such repair as
can reasonably be accomplished from the net proceeds of insurance actually made
available to the then holder of the reversionary interest or the foreclosure
purchaser or transferee in lieu of foreclosure; (vi) obligated to repair the
Demised Premises or the Building, or any part thereof, in the event of
partial condemnation of the Demised Premises or the Building; (vii)
required to account for any security deposit of Tenant unless actually delivered
to such holder, purchaser or transferee by Landlord; (viii) bound by any
obligation to make any payment to Tenant or grant any credits, except for
services, repairs, maintenance and restoration provided for under this Lease to
be performed by Landlord after the date of attornment; or (ix) responsible for
any monies owing by Landlord to Tenant.  Nothing contained in this
subparagraph shall be construed to impair any right otherwise exercisable by any
such holder, purchaser or transferee.  Tenant agrees to execute and
deliver, at any time and from time to time, upon the request of the Landlord of
or the lessor under any such Superior Lease or the holder of any such Superior
Mortgage any instrument which may be necessary or appropriate to evidence such
attornment.

    
      
         

      

      
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    (b)           Upon
Tenant's receipt of a written notice from the lessor under any Superior Lease or
the holder of any Superior Mortgage to the effect that (i) the lessor of said
Superior Lease has terminated such Superior Lease or the holder of any Superior
Mortgage has declared a default under such Superior Mortgage and/or is otherwise
is entitled to performance by the tenant under the Superior Lease, and (ii)
Tenant should pay the minimum rent and additional rent thereafter due and
payable under this Lease to said lessor or said holder at a place designated in
such notice, Tenant shall pay such minimum rent and additional rent to said
lessor under said Superior Lease or the holder of any Superior Mortgage at such
designated place until such time as said lessor or holder shall notify Tenant
that Tenant may resume paying all minimum rent and additional rent thereafter
due and payable under this Lease to Landlord.  Tenant shall have no
liability to the Landlord for paying any minimum rent or additional rent to said
lessor under the Superior Lease or holder of any Superior Mortgage or otherwise
acting in accordance with the provisions of any notice sent to it under this
paragraph and shall be relieved of its obligations to pay Landlord any minimum
rent or additional rent under this Lease to the extent such payments are made to
said lessor under the Superior Lease or to said holder under the Superior
Mortgage.

     

    Section
25.03. In the event of any act or omission by Landlord which would give Tenant
the right to terminate this Lease or to claim a partial or total eviction,
pursuant to the terms of this Lease, if any, Tenant will not exercise any such
right until:

     

    (a)           it
has given a written notice to cure (concurrently with any notice given to
Landlord), regarding such act or omission to the holder of any Superior Mortgage
and to the lessor of any Superior Lease, whose names and addresses shall
previously have been furnished to Tenant, in writing, addressed to such holder
and lessor at the last addresses so furnished, and

    
      
         

      

      
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    (b)           a
reasonable period of time (not to exceed the period in this Lease or the
Superior Lease or the Superior Mortgage, as the case may be) for remedying such
act or omission shall have elapsed following such giving of notice and the
expiration of any grace period applicable thereto in favor of Landlord
hereunder, during which such holder and lessor, or any of them, with reasonable
diligence, following the giving of such notice, shall have commenced and are
continuing to remedy such act or omission or to cause the same to be
remedied.

     

    If Tenant
fails to give the notice and cure period to the holder of any Superior Mortgage
pursuant to subparagraph (a) above and to the lessor of any Superior Lease, then
any termination of this Lease or claim of partial or total eviction by Tenant
shall be deemed null and void.

     

    Section
25.04. If, in connection with obtaining financing for the Landlord’s estate in
and to the Building as lessee under a Superior Lease, or of Landlord's interest
in any Superior Lease, a banking, insurance or other recognized institutional
lender shall request modifications in this Lease as a condition to such
financing, Tenant will not withhold, delay or defer its consent thereto and its
execution and delivery of such modification agreement, provided that such
modifications do not increase the obligations or lessen the rights of Tenant
hereunder or adversely affect Tenant's leasehold interest hereby created or
Tenant's use and enjoyment of the Demised Premises.

     

    Section
25.05. Landlord shall obtain, within sixty (60) days from the execution and
delivery of this Lease by the parties hereto, from the holder of the existing
mortgage on the land and Building which non-disturbance agreement shall be in
the form used by said mortgagee. Any fees (including reasonable attorneys fees)
required to be paid to such mortgagee in connection with the non-disturbance
agreement shall be paid by Tenant.

     

    Section
25.06. Landlord represents and warrants that the terms of the Saks Lease do not
(a) materially interfere with the leasehold estate granted under this Lease, or
(b) materially interfere with Tenant’s use of the Demised Premises.

     

    ARTICLE
26

     

    Estoppel
Certificate

     

    Tenant
shall at any time, and from time to time, within ten (10) days after so
requested by Landlord execute, acknowledge and deliver to Landlord, a statement
addressed to Landlord or its designee or the lessor of any Superior Lease or the
holder of any Superior Mortgage encumbering such Superior Lease and/or the
interest of the lessor under the Superior Lease in and to the Building (a)
certifying that this Lease is unmodified and in full force and effect (or, if
there have been modifications, that the same is in full force and effect as
modified and stating the modifications), (b) stating the dates to which the
minimum rent and additional rent have been paid, (c) stating whether or not
there exists any default by Landlord under this Lease, and, if so, specifying
each such default, and (d) such other information as may be reasonably required
by Landlord or any such lessor or mortgagee.

    
      
         

      

      
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    ARTICLE
27

     

    Waiver
of Jury Trial

     

    Tenant
hereby waives the right to trial by jury in any summary proceeding that may
hereafter be instituted against it or in any action or proceeding that may be
brought by Landlord on matters which are connected with this Lease, or any of
its provisions or Tenant's use or occupancy of the Demised Premises, including
any claims for injury or damage, or any emergency or other statutory remedy with
respect thereto.

     

    ARTICLE
28

     

    Surrender
of Premises

     

    Section
28.01. Upon the expiration or other termination of the term of this Lease,
Tenant shall quit and surrender the Demised Premises, vacant, broom clean, in
good order and condition, ordinary wear and tear and damage by fire or other
casualty excepted, and shall remove all its property therefrom, except as
otherwise provided in this Lease.  Tenant's obligation to observe or
perform this covenant shall survive the expiration or other termination of the
term of this Lease.

     

    Section
28.02. In the event Tenant shall remain in possession of the Demised Premises
after the expiration or other termination of the term of this Lease, such
holding over shall not constitute a renewal or extension of this
Lease.  Landlord, may, at its option, elect to treat Tenant as one who
is not removed at the end of the term, and thereupon be entitled to all of the
remedies against Tenant provided by law in that situation or Landlord may elect
to construe such holding over as a tenancy from month-to-month, subject to all
of the terms and conditions of this Lease, except as to the duration thereof,
and the minimum rent shall be due, in either of such events, at a monthly rental
rate equal to one and one-half (1.5) times the monthly installment of minimum
rent which would otherwise be payable for such month, together with any and all
additional rent.  Tenant shall also be responsible for and hereby
indemnifies Landlord against any claims made by any succeeding tenant or
prospective tenant founded upon Tenant's delay in surrendering the Demised
Premises to Landlord.  If the Demised Premises are not surrendered
upon the termination of this Lease, provided that at the time of expiration or
sooner termination, Landlord shall notify Tenant in writing that it has entered
into or is about to enter into a new lease with a succeeding tenant, in which
event, Tenant shall indemnify Landlord against liability resulting from such
delay by Tenant, including any claims made by any succeeding tenant founded upon
such delay.

    
      
         

      

      
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    ARTICLE
29

     

    Rules
and Regulations

     

    Section
29.01. Tenant, its servants, employees, agents, visitors and licensees shall
observe faithfully and comply with the rules and regulations set forth in
Schedule "C" attached hereto and made a part hereof.  Landlord shall
have the right from time to time during the term of this Lease, upon at least
ten (10) business days prior notice to Tenant, to make reasonable changes in and
additions to the rules thus set forth.

     

    Section
29.02. Any failure by Landlord to enforce any rules and regulations now or
hereafter in effect, either against Tenant or any other tenant in the Building,
shall not constitute a breach hereunder or waiver of any such rules and
regulations.

     

    ARTICLE
30

     

    Successors
and Assigns and Definitions

     

    Section
30.01. The covenants, conditions and agreements contained in this Lease shall
bind and enure to the benefit of Landlord and Tenant and their respective
distributees, legal representatives, successors and, except as otherwise
provided herein, their assigns.

     

    Section
30.02. The term "Landlord" as used in this Lease, so far as the covenants and
agreements on the part of Landlord are concerned shall be limited to mean and
include only the owner or owners at the time in question of the tenant's estate
under any Superior Lease covering the property described in Schedule B hereto
annexed and/or (but only if the Superior Leases shall terminate and Tenant shall
attorn to the lessor under the Superior Lease which had terminated) the fee
title of Landlord covering the Land and/or the Building and improvements
thereon.  In the event of any assignment or assignments of such
tenant's estate or transfer of such title, Landlord herein named (and in case of
any subsequent assignment or transfer, the then assignor or transferor) shall be
automatically freed and relieved from and after the date of such assignment or
transfer of all personal liability as respects to performance of any of
Landlord's covenants and agreements thereafter to be performed, and such
assignee or transferee shall be bound by all of such covenants and agreements;
it being intended that Landlord's covenants and agreements shall be binding on
Landlord, its successors and assigns only during and in respect of their
successive periods of such ownership.

    
      
         

      

      
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    However,
in any event, the members in Landlord shall not have any personal liability or
obligation by reason of any default by Landlord under any of Landlord's
covenants and agreements in this Lease.  In case of such default,
Tenant will look only to Landlord's estate, as tenant, under such Superior Lease
and/or (but only if the Superior Leases shall terminate and Tenant shall attorn
to the lessor under the Superior Lease which had terminated) its interest in the
Land and/or Building, to recover any loss or damage resulting
therefrom.

     

    Section
30.03. All pronouns or any variation thereof shall be deemed to refer to
masculine, feminine or neuter, singular or plural as the identity of the person
or persons may require; and if Tenant shall consist of more than one (1) person,
the obligations of such persons, as Tenant, under this Lease, shall be joint and
several.

     

    Section
30.04. The definitions contained in Schedule E annexed hereto are hereby made a
part of this Lease.

     

    ARTICLE
31

     

    Notices

     

    Any
notice, statement, certificate, request, approval, consent or demand required or
permitted to be given under this Lease shall be in writing sent by registered or
certified mail (or reputable, commercial overnight courier service) return
receipt requested, addressed, as the case may be, to Landlord, at 750 Lexington
Avenue, New York, New York 10022, with a copy to Cohen Brothers Realty
Corporation, 750 Lexington Avenue, 28th Floor,
New York, NY 10022, Attention: General Counsel, and to Tenant prior to the
Commencement Date at 650 Fifth Avenue, 3rd Floor,
New York, New York 10019 with a copy to Ilan Lerman, Esq., Wolf Halderstein
Adler Freeman & Herz LLP, 270 Madison Avenue, New York, New York 10016 and
after the Commencement Date at the Demised Premises with a copy to Ilan Lerman,
Esq., Wolf Halderstein Adler Freeman & Herz LLP, 270 Madison Avenue, New
York, New York 10016, or to such other addresses as Landlord or Tenant
respectively shall designate in the manner herein provided.  Such
notice, statement, certificate, request, approval, consent or demand shall be
deemed to have been given on the date when mailed, as aforesaid, or on the date
of delivery by overnight courier.

    
      
         

      

      
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    ARTICLE
32

     

    No
Waiver; Entire Agreement

     

    Section
32.01. The specific remedies to which Landlord may resort under the provisions
of this Lease are cumulative and are not intended to be exclusive of any other
remedies or means of redress to which Landlord may be lawfully entitled in case
of any breach or threatened breach by Tenant of any of the terms, covenants
and conditions of this Lease.  The failure of Landlord or Tenant,
as the case may be, to insist upon the strict performance of any of the terms,
covenants and conditions of this Lease, or to exercise any right or remedy
herein contained, shall not be construed as a waiver or relinquishment for the
future of such term, covenant, condition, right or remedy.  A receipt
by Landlord, or payment by Tenant, of minimum rent or additional rent with
knowledge of the breach of any term, covenant or condition of this Lease shall
not be deemed a waiver of such breach.  This Lease may not be changed
or terminated orally.  In addition to the other remedies in this Lease
provided, Landlord shall be entitled to seek to restrain by injunction, the
violation or attempted or threatened violation of any of the terms, covenants
and conditions of this Lease or to a decree, any court having jurisdiction in
the matter, compelling performance of any such terms, covenants and
conditions.

     

    Section
32.02. No receipt of monies by Landlord from Tenant, after any re-entry or after
the cancellation or termination of this Lease in any lawful manner, shall
reinstate the Lease; and after the service of notice to terminate this Lease, or
other remedy, Landlord may demand, receive and collect any monies due, and apply
them of account of Tenant's obligations under this Lease but without in any
respect affecting such notice, action, proceeding or remedy, except that if a
money judgment is being sought in any such action or proceeding, the amount of
such judgment shall be reduced by such payment.

     

    Section
32.03. If Tenant is in arrears in the payment of minimum rent or additional
rent, Tenant waives its right, if any, to designate the items in arrears against
which any payments made by Tenant are to be credited and Landlord may apply any
of such payments to any such items in arrears as Landlord, in its sole
discretion, shall determine, irrespective of any designation or request by
Tenant as to the items against which any such payments shall be
credited.

     

    Section
32.04. No payment by Tenant nor receipt by Landlord of a lesser amount than may
be required to be paid hereunder shall be deemed to be other than on account of
any such payment, nor shall any endorsement or statement on any check or any
letter accompanying any check tendered as payment be deemed an accord and
satisfaction and Landlord may accept such check or payment without prejudice to
Landlord's right to recover the balance of such payment due or pursue any other
remedy in this Lease provided.

     

    Section
32.05. This Lease and the Schedules annexed hereto constitute the entire
agreement between Landlord and Tenant referable to the Demised Premises, and all
prior negotiations and agreements are merged herein.

     

    Section
32.06. If any term or provision of this Lease or the application thereof to any
person or circumstance shall, to any extent, be invalid or unenforceable, the
remainder of this Lease, or the application of such term or provision to persons
or circumstances
other than those as to which it is held invalid or unenforceable, shall
not be affected thereby, and each term and provision of this Lease shall
be valid and be enforced to the fullest extent permitted by
law.
 

    
      
         

      

      
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    Section
32.07 Tenant acknowledges that Landlord will contract or has contracted with one
or more providers of telecommunications services for the installation of cable,
wire and related electrical, electronic or mechanical devices in the Building
sufficient to provide telecommunications services to the Demised Premises, and
Tenant agrees to engage such a provider, as designated by Landlord, to provide
such services, unless another provider selected by Tenant and reasonably
approved by Landlord agrees to provide such services to Tenant at a lower cost
than the provider designated by Landlord.  In such event Landlord
shall have the right to cause the service provider designated by Landlord to
match the cost chargeable by the provider selected by Tenant, in which event
Tenant agrees to engage the provider designated by Landlord.

     

    Section
32.08 It is understood and agreed 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 whatsoever until (i) Tenant has duly executed and delivered
duplicate originals to Landlord, and (ii) Landlord has executed and delivered
one of said fully executed originals to Tenant.

     

    Section
32.09. Tenant hereby grants to Landlord a lien and security interest on all
fixtures now or hereafter placed in or upon the Demised Premises by Tenant, and
all proceeds therefrom (collectively, “property”) and the fixtures shall be and
remain subject to such lien and security interest of Landlord for payment of all
rent, and to secure payment of any damage or loss which Landlord may suffer by
reason of the breach by Tenant of any covenant, agreement or condition contained
herein.  The provisions of this section relating to said lien and
security interest shall constitute a security agreement under the New York
Uniform Commercial Code “the Code”) so that Landlord shall have and may enforce
a security interest in the fixtures now or hereafter placed in or upon the
Demised Premises by Tenant, and all proceeds therefrom, and such property shall
not be removed therefrom without the consent of Landlord until all
arrearages in rent then due to Landlord hereunder shall first have been paid and
discharged and all the covenants, agreements and conditions hereof have been
fully complied with and performed by Tenant.  Upon the occurrence of
an event of default, Landlord may, in addition to any other remedies provided
herein or under law, enter upon the Demised Premises and take possession of any
fixtures of Tenant situated in the Demised Premises, without liability for
trespass or conversion, and sell the same at public or private sale with or
without having such property at the sale, after giving Tenant reasonable notice
of the time of any public sale or of the time after which any private sale is to
be made, at which sale Landlord or its assigns may purchase unless otherwise
prohibited by law.  Unless otherwise provided by applicable law, and
without intending to exclude any other manner of giving Tenant reasonable
notice, the requirement of reasonable notice shall be met if such notice is
given in the manner prescribed in this Lease at least five (5) days before the
time of sale.  The proceeds from any such disposition, less any and
all expenses connected with the taking of possession, holding and selling
of the property (including reasonable attorney’s fees and other expenses), shall
be applied as a credit against the indebtedness secured by the security interest
granted herein.  In the event the proceeds from any such disposition
exceed the indebtedness secured by the security interest granted herein, then
such surplus shall be paid as required by law.  Tenant agrees to
execute as debtor such financing statement or statements as Landlord may now or
hereafter reasonably request in order that such security interest or interests
may be perfected pursuant to said Code.  Landlord, as secured party,
shall be entitled to all of the rights and remedies afforded a secured party
under said Code, in addition to and cumulative of the Landlord’s liens and
rights provided by law or by the other terms and provisions of this
Lease.

    
      
         

      

      
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    Section
32.10. If Tenant is a partnership that consists of two or more persons or
entities, then each person or entity signing below as Tenant shall be jointly
and severally liable for all of Tenant's obligations under this
Lease.

     

    ARTICLE
33

     

    Captions

     

    The
captions of Articles in this Lease are inserted only as a matter of convenience
and for reference and they in no way define, limit or describe the scope of this
Lease or the intent of any provision thereof.

     

    ARTICLE
34

     

    Inability
to Perform

     

    Tenant's
obligation to pay minimum rent and additional rent and to perform all of the
other terms, covenants and conditions of this Lease shall not be affected,
diminished, or excused if by reason of unavoidable delays (as hereinafter
defined) Landlord fails or is unable to supply any services or make any repairs
or perform any work which under this Lease Landlord has expressly agreed to
supply, make or perform, and the time for the performance or observance thereof
shall be extended for the period of time as Landlord shall have been so
delayed.

     

    Tenant's
obligation to make any repairs required pursuant to Section 6.01 shall be
subject to any unavoidable delays (as hereinafter defined) and the time for the
performance by Tenant shall be extended for the period of time as Tenant shall
have been so delayed.

     

    The words
"unavoidable delays", as used in this Lease shall mean (a) the enactment of any
law or issuance of any governmental order, rule or regulation (i) prohibiting or
restricting performance of work of the character required to be
performed under this Lease, or (ii) establishing rationing or priorities in
the use of materials, or (iii) restricting the use of labor, and (b) strikes,
lockouts, acts of God, inability to obtain labor or materials, enemy action,
civil commotion, fire, unavoidable casualty or other similar types of causes
beyond reasonable control, other than financial inability.

    
      
         

      

      
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    ARTICLE
35

     

    No
Representations by Landlord

     

    Neither
Landlord nor any agent or employee of Landlord has made any representation
whatsoever with respect to the Demised Premises except as expressly set forth in
this Lease.

     

    ARTICLE
36

     

    Security
Deposit

     

    Section
36.01. Concurrently with the execution of this Lease, Tenant shall deliver to
Landlord the amount of $313,863.32, as security for the faithful performance and
observance by Tenant of the terms, provisions and conditions of this Lease. On
or before March 1, 2011, the security deposit shall be increased by $78,465.83
to $392,239.15 and Tenant shall deliver to Landlord a check in the amount of
$78,465.83 by said date. Tenant agrees that, in the event that Tenant defaults
in respect of any of the terms, provisions and conditions of this Lease
(including the payment of minimum rent and additional rent), after any
applicable notice and expiration of any applicable cure period, Landlord may
use, apply, or retain the whole or any part of the security deposit, to the
extent required for the payment of any rent, additional rent, or any other sum
as to which Tenant is in default, or for any sum that Landlord may expend or may
be required to expend by reason of Tenant's default, in respect of any of the
terms, covenants and conditions of this Lease (including any damages or
deficiency accrued before or after summary proceedings or other re-entry by
Landlord).  In the event that Landlord applies or retains any portion
or all of the security deposit, Tenant shall, within five (5) days after demand
by Landlord, restore the amount so applied or retained.  If Tenant
shall fail or refuse to make such additional deposit, Landlord shall have the
same rights in law and in equity and under this Lease as it has with respect to
a default by Tenant in the payment of minimum rent.  In the event that
Tenant shall fully and faithfully comply with all of the terms, provisions,
covenants and conditions of this Lease, the security shall be returned to Tenant
within twenty (20) days after the expiration date and after delivery of
possession of the entire Demised Premises to Landlord in the condition provided
in this Lease for such delivery of possession.

    
      
         

      

      
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    Section
36.02. In the event Landlord's estate as tenant under any Superior Lease is sold
or assigned, or (if the Superior Lease shall terminate and Tenant shall
attorn to the lessor under the Superior Lease which had terminated) the fee
title of Landlord covering the Land and/or Building is transferable or conveyed,
Landlord shall have the right to transfer the security deposit then held by
Landlord to the vendee, transferee or assignee, and Landlord shall thereupon be
released by Tenant from all liability for the return of the security
deposit.  In such event, Tenant agrees to look solely to the new
Landlord for the return of the security deposit.  It is agreed that
the provisions hereof shall apply to every transfer or assignment made of the
security deposit to a new Landlord.

     

    Section
36.03. Tenant covenants that it will not assign or encumber, or attempt to
assign or encumber, the security deposit, and that neither Landlord nor its
successors or assigns shall be bound by any such assignment, encumbrance,
attempted assignment, or attempted encumbrance.

     

    Section
36.04. The use of the security, as provided in this Article, shall not be deemed
or construed as a waiver of Tenant's default or as a waiver of any other rights
and remedies to which Landlord may be entitled under the provisions of this
Lease by reason of such default, it being intended that Landlord's rights to use
the whole or any part of the security shall be in addition to but not in
limitation of any such other rights and remedies; and Landlord may exercise any
of such other rights and remedies independent of or in conjunction with its
rights under this Article.

     

    Section
36.07. Provided that Tenant is not then in default under any of the terms,
covenants and conditions of this Lease, provided further that the named Tenant
is in occupancy of the entire Demised Premises, after the actual payment by
Tenant of thirty six (36) months of minimum rent, the amount of the security
deposit hereunder shall be reduced by $78,465.83 to $313,863.32.

     

    ARTICLE
37

     

    Late Payment
Charges

     

    If Tenant
shall fail to pay any minimum rent or additional rent within ten (10) days after
its due date, Tenant shall pay a late charge of $.05 for each $1.00 which
remains unpaid after such period to compensate Landlord for additional expense
in processing such late payment.  In addition, if Tenant fails to pay
any minimum rent or additional rent within ten (10) days after its due date,
Tenant shall pay interest thereon from the date due until the date paid at the
rate of one-half (1/2%) percent per month.  If any check of Tenant in
payment of any sum due under this lease, including but not limited to minimum
rent and additional rent, fails to clear the bank, Tenant shall pay a charge of
$300.

    
      
         

      

      
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    ARTICLE
38

     

    Rent
Control

     

    In the
event the minimum rent and/or additional rent or any part thereof provided to be
paid by Tenant under the provisions of this Lease during the demised term shall
become uncollectible or shall be reduced or required to be reduced or refunded
by virtue of any federal, state, county or city 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, Tenant
shall enter into such agreement(s) and take such other steps (without additional
expense or liability to Tenant) as Landlord may reasonably request and as may be
legally permissible to permit Landlord to collect the maximum rents which from
time to time during the continuance of such legal rent restriction may be
legally permissible (and not in excess of the amounts reserved therefor under
this Lease).  Upon the termination of such legal rent restriction, (a)
the minimum rent and/or additional rent shall become and thereafter be payable
in accordance with the amounts reserved herein for the periods following such
termination, and (b) Tenant shall pay to Landlord promptly upon being billed, to
the maximum extent legally permissible, an amount equal to (i) minimum rent
and/or additional rent which would have been paid pursuant to this Lease but for
such legal rent restriction less (ii) the rents paid by Tenant during the period
such legal rent restriction was in effect.

     

    ARTICLE
39

     

    Confidentiality

     

    Section
39.01. Tenant acknowledges that Tenant will have access to certain confidential
information. Tenant will not disclose the confidential information to anyone
other than its attorneys or accountants during the Term of this Lease. The term
“confidential information” shall mean the terms, covenants, conditions and
provisions of this Lease, including the amount of the minimum rent and the
additional rent, and the plans, designs, and other documentation, used in
connection with this Lease, the Demised Premises and the Building. Tenant
(including any guarantor of this Lease and Tenant’s affiliates) shall not use
the confidential information for any purpose other than the use of the Demised
Premises by Tenant in accordance with the terms of this Lease and shall not
disclose any confidential information without the prior written approval of
Landlord.

     

    Section
39.02. Tenant acknowledges that any use or disclosure of the confidential
information will cause irreparable harm to Landlord.  As a
consequence, Tenant agrees that if Tenant fails to abide by the terms of this
Article, Landlord shall be entitled to specific performance, including the
immediate issuance of a temporary restraining order or preliminary injunction
enforcing the terms of this Article, and to a judgment for any damages
resulting from such breach, and to any other remedies available under applicable
law.

    
      
         

      

      
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    Section
39.03. Tenant shall indemnify and hold Landlord harmless from and against any
costs, expenses, claims and liabilities (including attorneys fees) relating to
any and all matters concerning the use or disclosure of the confidential
information by Tenant or any breach of the terms of this Article.

     

    Section
39.04. The terms of this Article shall continue during the Term and shall
survive for a period of five (5) years after the expiration or termination of
this Lease. The expiration or termination of this Lease shall not release Tenant
from Tenant’s obligations under this Article. Upon the expiration or termination
of this Lease, Tenant shall surrender and return to Landlord all confidential
information.  No confidential information shall be retained by Tenant
after the expiration or termination of this Lease without Landlord’s prior
written approval.

     

    ARTICLE 40

     

    Landlord's
Contribution

     

    Section
40.01. Subject to the provisions of Article 5 of this Lease, Tenant agrees to
perform the initial work and installations required to make the Demised Premises
suitable for the conduct of Tenant's business (“Tenant’s
Work”).  Tenant, within thirty (30) days following its execution of
this Lease, agrees to deliver to Landlord, for Landlord's approval, the plans
and specifications for Tenant's Work.  Tenant agrees to commence
Tenant’s Work promptly after Landlord’s delivery of vacant possession of the
Demised Premises and thereafter shall employ commercially reasonable efforts
(provided that Tenant shall not be required to incur any additional expense or
use overtime labor in employing such efforts) to complete Tenant’s Work and
commence business in the Premises within one hundred eighty (180) days following
Landlord’s approval of Tenant’s plans.  Provided that Tenant is not in
default under this Lease beyond the expiration of any applicable notice and cure
period, Landlord agrees to reimburse Tenant up to the sum of Two Hundred
Eighty-Nine Thousand Seven Hundred Twenty Dollars ($289,720.00) ("Landlord's
Reimbursement Contribution") towards the cost of Tenant’s Work, which shall include the
hard costs of construction and soft costs for architectural and engineering
services.  Landlord shall pay to Tenant, on a monthly basis, but not
more than once a month, ninety (90%) percent of the cost of the materials and
labor used for Tenant’s Work requested by Tenant theretofore performed by the
contractor, which shall include any general contractor and all subcontractors
hired by the general contractor, provided Tenant delivers to Landlord
concurrently with its request, receipted paid bills of the contractor, including
any general contractor and subcontractor, involved and approved by Tenant, and a
waiver of mechanic's lien signed by the contractors, including the general
contractor and subcontractors, with respect to the amount paid as evidenced by
the receipted paid bill, such payment to be made to Tenant within thirty (30)
days after receipt of Tenant's request together with the aforesaid
documentation.  Within forty-five (45) days after Landlord receives a
certificate from Tenant's architect stating that all of Tenant's Work performed
by the general contractor and subcontractors, has been completed, that the same
has been performed in compliance with all applicable Governmental Requirements
and the approved plans and specifications and delivery to Landlord of the any
required final "sign-off" letters, including, without limitation, the Department
of Buildings of the City of New York Letter of Completion Sign-off, and
equipment use permits (as necessary) for all work performed from the applicable
municipal authorities, Landlord shall pay to Tenant the aggregate of the ten
(10%) percent sums retained by Landlord.  Landlord shall have no
obligation or responsibility to pay any cost exceeding the amount of Landlord’s
Reimbursement Contribution.  If the amount Tenant expends for the cost
of the Tenant’s Work exceeds the amount of Landlord’s Reimbursement
Contribution, Tenant shall be responsible for the payment to the contractors of
the excess.  If said amount is less than the amount of Landlord’s
Reimbursement Contribution, Landlord shall not be obligated to pay such
difference to Tenant.  Tenant shall indemnify and hold Landlord
harmless from and against any and all claims, costs and expenses, including but
not limited to attorneys’ fees, in connection with or relating to the Tenant’s
Work performed pursuant to this Article.

    
      
         

      

      
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    ARTICLE
41

     

    Supplemental
Air Conditioning

     

    Section
41.01. Tenant, at Tenant’s cost and expense, shall have the right to use the
existing five (5) ton and the existing three (3) ton (totaling eight (8) tons)
water cooled supplemental air conditioning systems (the "Supplemental System”)
currently located in the Demised Premises.  Landlord does not warrant
the condition of the Supplemental System and shall not be responsible for any
problems that may occur due to any mechanical or other failure of the
Supplemental System.

     

    Section
41.02. Tenant, at Tenant’s cost and expense, (i) may tap into the existing
Building condenser water riser and use up to eight (8) tons of condenser water,
(ii) shall maintain the Supplemental System in good condition and repair and
shall make any replacements thereof as may be required, and (iii) shall obtain
in Tenant’s own name the use permits for the Supplemental System and provide
Landlord with copies of same.  Tenant shall also obtain and pay for
annual renewal fees in connection therewith, and provide Landlord with a copy of
such annual renewals.  The Supplemental System may be operated by
Tenant only during non-business hours.  Landlord, at Tenant's cost,
shall have the right to install a device to measure the hours of operation of
the Supplemental System, which device is capable of providing a printout
verifying the date and time of usage and shall be read by
Landlord.  Tenant shall pay to Landlord, as additional rent, the cost
of the electricity consumed by the Supplemental System, as determined by
Landlord, within ten (10) days following Landlord's billing thereof. Tenant
shall indemnify and hold Landlord harmless from and against any loss, claims,
costs, expenses and fees (including attorneys’ fees and disbursements) in
connection with the repair, maintenance and replacement of the Supplemental
System.

    
      
         

      

      
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    Section
41.03. With respect to Tenant’s use of condenser water, Tenant shall pay to
Landlord (i) the sum of $2,000.00 as a “tap-in” fee, to be paid upon the
execution of this Lease, and (ii) during each month of the term of this Lease,
an amount (the "Monthly Condenser Water Amount”) equal to the product obtained
by multiplying (x) the number of tons of condenser water connected to the
condenser water riser, to wit, eight (8) times (which may be increased up to 12
tons upon written request by Tenant (y) 1/12th of the Condenser Water Charge (as
hereinafter defined) in effect for the calendar year in which such month
occurs.  Landlord shall furnish bills to Tenant, from time to time,
for the Monthly Condenser Water Amount and Tenant shall pay each such bill
within ten (10) days after its receipt thereof.  As of the date
hereof, the "Condenser Water Charge” is Seven Hundred Fifty Dollars ($750.00)
per ton of cooling capacity, per annum.  From and after the fifth
anniversary of the Commencement Date, Landlord shall have the right to increase
the Condenser Water Charge, from time to time, based on Landlord’s increased
costs and expenses with respect to supplying condenser water to the Supplemental
System.  Upon Tenant’s written request, Landlord shall furnish to
Tenant reasonable evidence of such increased condenser water
charges.

     

    Section
41.04. Landlord, upon notice to Tenant (except in the case of an emergency)
reserves the right to shut down the condenser water for such period as Landlord
reasonably determines is required for necessary repairs or service to the base
Building condenser water system or as otherwise necessary in connection with the
repair or installation of other tenants’ supplemental air conditioning systems,
provided that Landlord shall employ commercially reasonable efforts to resume
the provision of condenser water.

     

    ARTICLE
42

     

    Renewal
Option

     

    Section
42.01. Provided that Tenant is not then in default beyond the expiration of any
applicable notice and cure periods (and the named Tenant is in occupancy of the
entire Demised Premises), both at the time that the Tenant exercises the Renewal
Option (as hereinafter defined) and at the commencement of the Renewal Term (as
hereinafter defined) under any of the terms, covenants and conditions hereunder
on the part of Tenant to be performed, Tenant shall have the option (the
“Renewal Option”)  to extend the term of this Lease for one (1)
additional period of five (5) years (the "Renewal Term"), provided that the
Tenant gives Landlord notice of its exercise of the exercise of the Renewal
Option at least twelve (12) months but not more than eighteen (18) months prior
to the expiration of the initial term hereof.

     

    
      
        
        

      

      
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    Section
42.02. The Renewal Term shall be upon all of the same terms, covenants and
conditions as are contained in this Lease, except as follows:

     

    (a)           Tenant
shall have no further right to extend the term of this Lease.

     

    (b)           Landlord
shall not be required to do any work in the Demised Premises or obligated to pay
any commission and there shall be no rent abatement.

     

    (c)           (i)          
 The minimum rent for the Renewal Term shall be an amount equal to the fair
market annual rental value of the Demised Premises as of the commencement of the
Renewal Term (inclusive of the additional rent under Article 22 which shall
continue to be payable as provided in said Article), but in no event less than
the amount of the minimum rent and additional rent then payable during the last
year of the initial term of this Lease ("Renewal Rental Value").  In
the event that the parties fail to agree on the Renewal Rental Value within
three (3) months prior to the Expiration Date of the initial term hereof, then
the Renewal Rental Value shall be determined by arbitration in the manner as
provided in Article 43, and the results of such arbitration shall be conclusive
and binding on the parties.

     

    (ii)          If
for any reason the Renewal Rental Value for the Renewal Term shall not be
determined prior to the commencement of the Renewal Term, Tenant, in the
meantime, shall pay the monthly installments of minimum rent at an amount equal
to one hundred ten percent (110%) of the then rate as provided in this Lease,
including the additional rent then payable under Article 22.  If the
Renewal Rental Value as determined by arbitration shall be greater than the
amount of the annual minimum rent(inclusive of additional rent under Article 22)
then being payable, then within twenty (20) days after the arbitrators decision,
the difference between the monthly installments for minimum rent and additional
rent actually paid and the monthly installments for minimum rent and additional
rent which should have been paid from the commencement of the Renewal Term shall
be determined and paid by Tenant to Landlord and thereafter Tenant shall pay the
monthly installments of minimum rent at the new rate.

     

    Section
42.03. Following the determination of the minimum rent, Landlord and Tenant
shall execute an agreement amending this Lease to reflect the foregoing, but the
provisions of this Article shall be effective with respect to the Renewal Term
from the commencement of the Renewal Term whether or not such an amendment is
executed.

    
      
         

      

      
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    ARTICLE
43

     

    Renewal
Option Arbitration

     

    Section
43.01. Either party may request arbitration with respect to the Renewal Rental
Value pursuant to Article 42. The arbitration shall be held in the Borough of
Manhattan, City, County and State of New York, conducted to the extent
consistent with this Article in accordance with the rules then obtaining of
the American Arbitration Association, or any successor body of similar function,
governing commercial arbitration, except that the foregoing shall not be deemed
or construed to require that such arbitration actually be conducted by or before
the American Arbitration Association or any successor body of similar
function.  The arbitration shall be conducted before arbitrators
selected as follows:  The party desiring arbitration shall appoint a
disinterested person (i.e. – a person that has not been employed by Landlord or
Tenant, respectively, during the prior ten (10) years) as arbitrator on its
behalf and give notice thereof to the other party who shall, within twenty (20)
days thereafter, appoint a second disinterested person as arbitrator on its
behalf and give written notice thereof to the first party.  The
arbitrators thus appointed shall, within twenty (20) days after the date of the
appointment of the second arbitrator, appoint a third disinterested person, who
shall be a person licensed by the State of New York (if such license is required
by law) or otherwise qualified and having the necessary expertise, including at
least ten (10) year's experience, in the matter or discipline which is the
primary subject or is primarily involved in such arbitration.  If the
arbitrators thus appointed shall fail to appoint such third disinterested person
within said twenty (20) day period, then either party may, by application to the
presiding Justice of Appellate Division of the Supreme Court of the State of New
York for the First Judicial Department, which application shall be made within
fifteen (15) days after the end of said twenty (20) day period, seek to appoint
such third disinterested person, such appointment being made not later than
thirty (30) days after the date of said application.  Upon such
appointment, such person shall be the third arbitrator as if appointed by the
original two arbitrators.  The decision of the majority of the
arbitrators shall be final, non-appealable, conclusive and binding on all
parties and judgment upon the award may be entered in any court having
jurisdiction.  If a party who shall have the right pursuant to the
foregoing, to appoint an arbitrator, fails or neglects to do so, then and in
such event the other party shall select the arbitrator not so selected by the
first party, and upon such selection, such arbitrator shall be deemed to have
been selected by the first party.  The expenses of arbitration shall
be shared equally by Landlord and Tenant, unless this Lease expressly provides
otherwise, but each party shall pay and be separately responsible for its own
counsel and witness fees and disbursements, unless this Lease expressly provides
otherwise.  Landlord and Tenant agree to sign all documents and to do
all other things reasonably necessary to submit any such matter to arbitration
and further agree to, and hereby do, waive any and all rights they or either of
them may at any time have to revoke their agreement hereunder to submit to
arbitration and to abide by the decision rendered thereunder and agree that
a judgment or order may be entered in any court of competent jurisdiction based
on an arbitration award (including the granting of injunctive
relief).

    
      
         

      

      
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    Section
43.02. The arbitrators shall be disinterested persons having at least ten (10)
years experience in the County of New York in a calling connected with the
dispute, and shall have the right to retain and consult experts and competent
authorities skilled in the matters under arbitration, but any such consultation
shall be made in the presence of both parties, with full right on their part to
cross-examine such experts and authorities.  The arbitrators shall
render their decision and award upon the concurrence of at least two (2) of
their number, not later than sixty (60) days after appointment of the third
arbitrator.  Their decision and award shall be in writing and
counterpart copies thereof shall be delivered to each of the
parties.  In rendering their decision and award, the arbitrators shall
have no power to modify or in any manner alter or reform any of the provisions
of this Lease, and the jurisdiction of the arbitrators is limited
accordingly.

     

    ARTICLE
44

     

    15th Floor
Additional Space

     

    Section
44.01.   Provided that Tenant is not then in default (and the
named Tenant is in physical occupancy of the entire Demised Premises), both at
the time of Landlord's Availability Notice (as hereinafter defined) and on the
Effective Date (as hereinafter defined), at the time during the term of this
Lease that the portion of the fifteenth (15th) floor
leased to MTS Health Partners, L.P. pursuant to a certain lease dated December
17, 2003 (the "15th Floor
Additional Space") will become available for lease and future occupancy by
Tenant, Landlord shall give the named Tenant notice thereof on or about June 1,
2010 (the "Availability Notice").  Such notice shall state Landlord's
reasonable estimation of the date when the 15th Floor
Additional Space will be available for Tenant’s occupancy which is anticipated
to be on or about July 1, 2010. Tenant shall have the one time right to exercise
its option to lease the 15th Floor
Additional Space by giving Landlord notice of its election to do so (the
"Exercise Notice"), within twenty (20) days from the date of the Availability
Notice, with TIME OF THE ESSENCE. If Landlord does not receive the Exercise
Notice within said twenty (20) day period, then Tenant shall have no further
rights with respect to the 15th Floor
Additional Space under this Article, and Landlord may lease the 15th Floor
Additional Space to any other party upon such terms and conditions as Landlord
may deem desirable. Tenant acknowledges that the remainder of the fifteenth
(15th) floor
is leased to another tenant.  In the event that the Effective Date has
not occurred by December 31, 2010 (subject to unavoidable delays not to exceed
ninety (90) days, including any matter beyond Landlord’s reasonable
control)  through no fault of Tenant, Tenant shall have the right to
terminate the Exercise Notice and not lease the 15th Floor
Additional Space upon ten (10) business days written notice to Landlord, as
Tenant’s sole and exclusive remedy, unless Landlord delivers possession of the
15th
Floor Additional Space to Tenant within said period of ten (10) business
days.

    
      
         

      

      
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    Section
44.02. Tenant shall take possession of the 15th Floor
Additional Space and Landlord shall deliver possession thereof to Tenant on the
date on which Landlord shall have delivered the 15th Floor
Additional Space to Tenant vacant (the "Effective Date"), and from and after the
Effective Date, the 15th Floor Additional Space shall be deemed to be added to
and made part of the Demised Premises upon the terms, covenants and conditions
contained in this Lease (except those which by their terms are no longer
applicable), except as follows:

     

    (a)           Tenant
agrees to accept possession of the 15th Floor
Additional Space in its then "As Is" condition and Landlord shall not be
required to do any work therein to prepare the same for Tenant’s occupancy. The
electrical, plumbing, HVAC, sprinkler, mechanical, and life safety systems
serving the 15th Floor
Additional Space shall be in working order as of the date that Tenant shall take
possession of the 15th Floor
Additional Space.

     

    (b)           The
amount of the minimum rent as provided in Section 3.01 (a) shall be increased by
Six Hundred Fifty Six Thousand Five Hundred Dollars ($656,500), payable
$54,708.34 per month, from the Commencement Date to August 31, 2013 and shall be
increased by Six Hundred Ninety Six Thousand Nine Hundred Dollars ($696,900),
payable $58,075 per month, from September 1, 2013 for the remainder of the term,
plus the additional rent payable under Article 22 of this Lease immediately
prior to the Effective Date.

     

    (c)           Provided
that Tenant is not then in default under any of the provisions of this Lease on
its part to be performed, Tenant shall be entitled to an abatement of part of
the minimum rent only (excluding the electricity rent inclusion factor
determined by Landlord) with respect to the 15th Floor
Additional Space for the 1st, 2nd, 3rd,
16th,
17th
and 18th months
succeeding the Effective Date (totaling six (6) months), provided further that
any additional rent for each such month shall be paid by Tenant.

     

    (d           Pursuant
to Article 40, provided that Tenant is not in default under this Lease beyond
the expiration of any applicable notice and cure period, Landlord agrees to
reimburse Tenant up to the sum of Two Hundred Two Thousand Dollars ($202,000.00)
towards the cost of Tenant’s work to prepare the 15th Floor
Additional Space for Tenant’s occupancy, which shall be for the hard
costs of construction and the soft costs for architectural and engineering
services.

     

    (e)           In
Section 22.01(a), with respect to the 15th Floor
Additional Space only, in subdivision (i) the "Tax Base Factor" shall mean the
Real Estate Taxes for the Building Project for the period from July 1, 2010 to
June 30, 2011, as finally determined, the term "Comparative Tax Year"
shall mean the New York City real estate tax year commencing on July 1, 2011 and
each subsequent New York City real estate tax year, and the term the
“Percentage” for the 15th Floor
Additional Space shall be 3.4%.

    
      
         

      

      
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    (f)           In
Section 22.02(a), with respect to the 15th Floor
Additional Space only, in subdivision (ii), the "Base Wage Rate" shall mean the
Wage Rate in effect for the calendar year in which the Effective Date occurs;
and in subdivision (v) the "Multiplication Factor" for the 15th Floor
Additional Space shall be 10,100.

     

    Section
44.05. The right granted to the named Tenant under this Article is personal
to the named Tenant and may only be exercised by the named Tenant, excluding any
assignee.

     

    Section
44.05. Except as specifically amended in this Article, all of the terms,
covenants and conditions of this Lease shall continue in full force and effect
and unchanged.

     

    ARTICLE
45

     

    Additional
Option Space

     

    Section
45.01. Provided that the named Tenant has exercised the option for the
15th
Floor Additional Space pursuant to Article 44 and the 15th Floor
Additional Space is part of the Demised Premises under this Lease, provided
further that Tenant is not then in default (and the named Tenant is in physical
occupancy of the entire Demised Premises), both at the time of Landlord's
Availability Notice (as hereinafter defined) and on the Effective Date (as
hereinafter defined), at the time during the term of this Lease that the
remainder of the fifteenth (15th) floor,
which Landlord anticipates will become available for lease and future occupancy
by Tenant during the term of this Lease, and at the time during the term of this
Lease that the entire sixteenth (16th) floor,
which Landlord anticipates will become available for lease and future occupancy
by Tenant during the term of this Lease (collectively, the "Additional Option
Space"), Landlord shall then give the named Tenant notice thereof (the
"Availability Notice").

     

    Tenant
acknowledges that as of the Effective Date, the remainder of the fifteenth
(15th) floor
and the sixteenth (16th) floor
comprising the Additional Option Space are leased to other tenants. Tenant
further acknowledges that the anticipated delivery dates of the portions of the
Additional Option Space (subject to the holdover by the respective tenants of
any portion of the Additional Option Space), is as follows:

     

    Portion
of the 15th Floor
currently leased to Pegasus Blue Star Fund, LLC (the “Pegasus Space”) -
Anticipated on or about November 30, 2013.

    
      
         

      

      
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    Portion
of the 16th Floor
currently leased to Doral Financial Corporation (the “Doral Space”) -
Anticipated on or about January 31, 2018.

     

    Portion
of the 16th Floor
currently leased to Atalaya Capital Management, LP (the “Atalaya Space”) -
Anticipated on or about April 30, 2013.

     

    Portion
of the 16th Floor currently leased to Ellis Lake Capital, LLC (the “Ellis
Space”) - Anticipated on or about October 31, 2015.

     

    Such
notice shall state the rentable square feet of the Additional Option Space and
Landlord's reasonable estimation of the date when the Additional Option Space
will be available for Tenant’s occupancy (the "Occupancy Date").    Tenant
shall have the one time right to exercise its option to lease such Additional
Option Space by giving Landlord notice of its election to do so (the "Exercise
Notice"), within twenty (20) days from the date of the Availability Notice, with
TIME OF THE ESSENCE. If Landlord does not receive the Exercise Notice within the
applicable twenty (20) day period, then Tenant shall have no further rights with
respect to any Additional Option Space under this Article, and Landlord may
lease all or part of the Additional Option Space to any other party or parties
upon such terms and conditions as Landlord may deem desirable.  In the
event that the Effective Date has not occurred by the date that is six (6)
months after the Occupancy Date (subject to unavoidable delays not to exceed
ninety (90) days, including any matter beyond Landlord’s reasonable
control)  through no fault of Tenant, Tenant shall have the right to
terminate the Exercise Notice and not lease the Additional Option Space upon ten
(10) business days written notice to Landlord, as Tenant’s sole and exclusive
remedy, unless Landlord delivers possession of the Additional Option Space to
Tenant within said period of ten (10) business days.

     

    Section
45.02. Tenant shall take possession of the Additional Option Space and
Landlord shall deliver possession thereof to Tenant on the later of the
Occupancy Date and the actual date on which Landlord shall have delivered such
Additional Option Space to Tenant vacant (the "Effective Date"), and from and
after the Effective Date such Additional Space shall automatically be deemed
added to and made part of the Demised Premises upon all of the terms, covenants
and conditions as are contained in this Lease (except those which by their terms
are no longer applicable), except as follows:

     

    (a)           Tenant
agrees to accept possession of the Additional Option Space in its then "As Is"
condition and Landlord shall not be required to do any work therein to prepare
the same for Tenant’s occupancy. The electrical, plumbing, HVAC, sprinkler,
mechanical, and life safety systems serving the Additional Option Space shall be
in working order as of the date that Tenant shall take possession of the
Additional Option Space.

    
      
         

      

      
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    (b)           The
amount of the minimum rent provided in Section 3.01 (a)
shall be increased by the amount equal to the fair market annual rental value
("Rental Value") of the Additional Space as of the date that is six (6) months
prior to the Effective Date, as determined by Landlord, but not less than at the
aggregate rate per square foot payable for minimum rent and additional rent
payable under Article 22 of this Lease immediately prior to the Effective
Date.  In the event the parties fail to agree on such Rental Value
within ninety (90) days prior to the Effective Date, such Rental Value shall be
determined by arbitration in the manner as hereinafter provided; and the
determination of such arbitration shall be conclusive and binding on the
parties.  If for any reason such Rental Value shall not be determined
prior to the commencement of the Effective Date, Tenant, in the meantime, shall
pay the monthly installments of minimum rent at an amount equal to 100% of the
rate per square foot payable for minimum rent and said additional rent
immediately prior to the Effective Date.  If the Rental Value shall be
greater than the amount paid by Tenant for the Additional Option Space following
the Effective Date, Tenant forthwith after the arbitrators’ decision, shall pay
to Landlord the difference between the monthly installments actually paid and
the monthly installments which should have been paid from the commencement of
the Effective Date, and thereafter Tenant shall pay the monthly installments of
the new minimum rent.

     

    (c)           In
Section 22.01(a), with respect to the Additional Option Space only, in
subdivision (i) the "Tax Base Factor" shall mean the July 1 - June 30 fiscal
year in which the Effective Date occurs; in subdivision (iii) the "Comparative
Tax Year" shall mean the July 1 - June 30 fiscal year immediately following the
Tax Base Factor; and in subdivision (v) the "Percentage" shall be as
follows:

     

    Portion
of the 15th Floor -
the Pegasus Space - 1.1%.

     

    Portion
of the 16th Floor -
the “Doral Space -  1.5%.

     

    Portion
of the 16th Floor -
the Atalaya Space -  1.2%.

     

    Portion
of the 16th Floor - the Ellis Space – 1.6%.

     

    (d)           In
Section 22.02(a), with respect to the Additional Option Space only, in
subdivision (ii), the "Base Wage Rate" shall mean the Wage Rate in effect for
the calendar year in which the Effective Date occurs; and in subdivision (v) the
"Multiplication Factor" shall be as follows:

     

    Portion
of the 15th Floor -
the Pegasus Space – 3,745.

     

    Portion
of the 16th Floor -
the “Doral Space -  4,975.

    
      
         

      

      
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    Portion
of the 16th Floor -
the Atalaya Space -  4,175.

     

    Portion
of the 16ht Floor - the Ellis Space – 5,375

     

    Section
45.03. Following the determination of the Effective Date, the minimum rent
and the additional rent of the Additional Space, Landlord and Tenant shall
execute an agreement amending this Lease to reflect the foregoing, but the
provisions of this Article shall be effective with respect to the Additional
Space effective from and after the Effective Date whether or not such an
amendment is executed.

     

    Section
45.04. The right granted to the named Tenant under this Article is personal to
the named Tenant and may only be exercised by the named Tenant, excluding any
assignee.

     

    Section
45.05. Except as specifically amended in this Article, all of the terms,
covenants and conditions of this Lease shall continue in full force and effect
and unchanged.

     

    ARTICLE
46

     

    Additional
Option Space Arbitration

     

    Section
46.01. Either party may request arbitration with respect to the Rental
Value pursuant to Article 45. The arbitration shall be held in the Borough of
Manhattan, City, County and State of New York, conducted to the extent
consistent with this Article in accordance with the rules then obtaining of
the American Arbitration Association, or any successor body of similar function,
governing commercial arbitration, except that the foregoing shall not be deemed
or construed to require that such arbitration actually be conducted by or before
the American Arbitration Association or any successor body of similar
function.  The arbitration shall be conducted before arbitrators
selected as follows:  The party desiring arbitration shall appoint a
disinterested person (i.e. – a person that has not been employed by Landlord or
Tenant, respectively, during the prior ten (10) years) as arbitrator on its
behalf and give notice thereof to the other party who shall, within twenty (20)
days thereafter, appoint a second disinterested person as arbitrator on its
behalf and give written notice thereof to the first party.  The
arbitrators thus appointed shall, within twenty (20) days after the date of the
appointment of the second arbitrator, appoint a third disinterested person, who
shall be a person licensed by the State of New York (if such license is required
by law) or otherwise qualified and having the necessary expertise, including at
least ten (10) year's experience, in the matter or discipline which is the
primary subject or is primarily involved in such arbitration.  If the
arbitrators thus appointed shall fail to appoint such third disinterested person
within said twenty (20) day period, then either party may, by application to the
presiding Justice of Appellate Division of the Supreme Court of the State of New
York for the First Judicial Department, which application shall be
made within fifteen (15) days after the end of said twenty (20) day period,
seek to appoint such third disinterested person, such appointment being made not
later than thirty (30) days after the date of said application.  Upon
such appointment, such person shall be the third arbitrator as if appointed by
the original two arbitrators.  The decision of the majority of the
arbitrators shall be final, non-appealable, conclusive and binding on all
parties and judgment upon the award may be entered in any court having
jurisdiction.  If a party who shall have the right pursuant to the
foregoing, to appoint an arbitrator, fails or neglects to do so, then and in
such event the other party shall select the arbitrator not so selected by the
first party, and upon such selection, such arbitrator shall be deemed to have
been selected by the first party.  The expenses of arbitration shall
be shared equally by Landlord and Tenant, unless this Lease expressly provides
otherwise, but each party shall pay and be separately responsible for its own
counsel and witness fees and disbursements, unless this Lease expressly provides
otherwise.  Landlord and Tenant agree to sign all documents and to do
all other things reasonably necessary to submit any such matter to arbitration
and further agree to, and hereby do, waive any and all rights they or either of
them may at any time have to revoke their agreement hereunder to submit to
arbitration and to abide by the decision rendered thereunder and agree that a
judgment or order may be entered in any court of competent jurisdiction based on
an arbitration award (including the granting of injunctive
relief).

    
      
         

      

      
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    Section
46.02. The arbitrators shall be disinterested persons having at least ten
(10) years experience in the County of New York in a calling connected with the
dispute, and shall have the right to retain and consult experts and competent
authorities skilled in the matters under arbitration, but any such consultation
shall be made in the presence of both parties, with full right on their part to
cross-examine such experts and authorities.  The arbitrators shall
render their decision and award upon the concurrence of at least two (2) of
their number, not later than sixty (60) days after appointment of the third
arbitrator.  Their decision and award shall be in writing and
counterpart copies thereof shall be delivered to each of the
parties.  In rendering their decision and award, the arbitrators shall
have no power to modify or in any manner alter or reform any of the provisions
of this Lease, and the jurisdiction of the arbitrators is limited
accordingly.

    
      
         

      

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

    

    
      
        	
                FIFTH
      AVENUE BUILDING COMPANY LLC

              
	 
      	 
      
	
                By:

              	
                Fifth
      Avenue Tower Corp.

              
	 
      	
                its
      managing member

              
	 
      	 
      
	
                By:

              	
                   

              
	 
      	
                Charles
      Steven Cohen, President

              
	 
      	 
      
	
                JESUP
      & LAMONT, INC.

              
	 
      	 
      
	
                By:

              	
                   

              
	 
      	
                Name:

              
	 
      	
                Title:

              

      

    

    
      
         

      

      
        66

        
          

        

      

      
         

      

    

    CERTIFICATE
OF ACKNOWLEDGMENT

    

    
      
        
          
            	
                    STATE
      OF NEW YORK

                  	
                    )

                  	 
      
	 
      	
                    :    

                  	
                    ss.:

                  
	COUNTY
      OF NEW YORK  	
                    )

                  	 

          

        

      

    

    

    On
the     day
of                     in
the year 2010 before me, the undersigned, a Notary Public in and for said State,
personally appeared Charles Steven Cohen, 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 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

                	 

        

      

    

    

    
      	
              STATE
      OF NEW YORK

            	
              )

            	 
      
	 
      	
              :    

            	
              ss.:

            
	COUNTY
      OF NEW YORK  	
              )

            	 

    

    

    On
the     day
of                     in
the year 2010 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 of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he 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

            	 

    

    
      
         

      

      
        67

        
          

        

      

      
         

      

    

    SCHEDULE
A

     

    Floor
Plan

     

    

     

    
      
         

      

      
        68

        
          

        

      

      
         

      

    

    SCHEDULE
B

     

    Description
of Land

     

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

     

    BEGINNING
at a point on the southerly side of East 50th Street
distant 208 feet easterly from the corner formed by the southerly side of East
50th
Street and the easterly side of Fifth Avenue;

     

    RUNNING
THENCE easterly along the southerly side of East 50th Street
85 feet 10 inches to a point distant 126 feet 2 inches westerly, as measured
along the southerly side of East 50th Street
from the corner formed by the southerly side of East 50th Street
and the westerly side of Madison Avenue;

     

    RUNNING
THENCE southerly at right angles to the last mentioned course 100 feet 5 inches
to the center line of the block;

     

    THENCE
easterly along the center line of the block 6 feet 2 inches to a
point;

     

    THENCE
southerly, at right angles to the last mentioned course 100 feet 5 inches to the
northerly side of East 49th
Street;

     

    THENCE
westerly along the northerly side of East 49th street
100 feet to a point;

     

    THENCE
northerly, at right angles to the last mentioned course, 60 feet 5 inches to a
point;

     

    THENCE
easterly at right angles to the last mentioned course, 60 feet 5 inches to a
point;

     

    THENCE
northerly, at right angles to the last mentioned course 77 feet 5 inches to a
point;

     

    THENCE
westerly, at right angles to the last mentioned course 20 feet 5 inches to a
point;

     

    THENCE
northerly, at right angles to the last mentioned course 63 feet 0 inches to the
southerly side of 50th Street,
the point or place of BEGINNING.

    
      
         

      

      
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    SCHEDULE C

     

    Rules
and Regulations

     

    1.           The
rights of tenants in the entrances, corridors, elevators and escalators of the
Building are limited to ingress to and egress from the tenants' premises for the
tenants and their employees, licensees, guests, customers and invitees, and no
tenant shall use, or permit the use of, the entrances, corridors, escalators or
elevators for any other purpose.  No tenant shall invite to the
tenant's premises, or permit the visit of, persons in such numbers or under such
conditions as to interfere with the use and enjoyment of any of the plazas,
entrances, corridors, escalators, elevators and other facilities of the Building
by other tenants.  Fire exits and stairways are for emergency use
only, and they shall not be used for any other purposes by the tenants, their
employees, licensees or invitees.  No tenant shall encumber or
obstruct, or permit the encumbrance or obstruction of any of the sidewalks,
plazas, entrances, corridors, escalators, elevators, fire exits or stairways of
the Building.  The Landlord reserves the right to control and operate
the public portions of the Building and the public facilities, as well as
facilities, furnished for the common use of the tenants, in such manner as it
deems best for the benefit of the tenants generally.  Landlord further
reserves the right, at any time, to install a message/package center in an area
in the Building designated by Landlord and reasonably accessible to and for the
common use of tenant's, and the tenants shall comply with the procedures for the
same set forth by the Landlord.

     

    2.           The
reasonable cost of repairing any damage to the public portions of the Building
or the public facilities or to any facilities used in common with other tenants,
caused by a tenant or the employees, licensees or invitees of the tenant, shall
be paid by such tenant.

     

    3.           The
Landlord may refuse admission to the Building at any time to any person not
having a pass issued by the Landlord, and may require all persons admitted to or
leaving the Building outside of ordinary business hours to
register.  Tenant's employees, agents and visitors shall be permitted
to enter and leave the building during and after ordinary business hours,
subject to the reasonable requirements of Landlord, including but not limited to
reasonable non-discriminatory use by Landlord of reasonable security scanners
and reasonable security detection equipment.  Each tenant shall be
responsible for all persons for whom he requests such permission and shall be
liable to the Landlord for all acts of such persons.  Tenant shall
obtain identification cards to be issued by Landlord for each employee and shall
pay the Landlord’s Building standard charge therefor.  Any person
whose presence in the Building at any time shall, in the judgment of the
Landlord, be prejudicial to the safety, character, reputation and interests of
the Building or its tenants may be denied access to the Building or may be
rejected therefrom.  In case of invasion, riot, public excitement or
other commotion the Landlord may prevent all access to the Building during the
continuance of the same, by closing the doors or otherwise, for the safety of
the tenants and protection of property in the Building.  The Landlord
may require any person leaving the Building with any package or other
object to exhibit a pass from the tenant from whose premises the package or
object is being removed, but the establishment and enforcement of such
requirement shall not impose any responsibility on the Landlord for the
protection of any tenant against the removal of property from the premises of
the tenant.  The Landlord shall, in no way, be liable to any tenant
for damages or loss arising from the admission, exclusion or ejection of any
person to or from the tenant's premises or the Building under the provisions of
this rule.

    
      
         

      

      
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    4.           No
tenant shall obtain or accept for use in its premises towel, barbering, boot
blacking, floor polishing, lighting maintenance, cleaning or other similar
services from any persons not authorized by the Landlord in writing to furnish
such services, provided always that the charges for such services by persons
authorized by the Landlord are comparable to the industry
charge.  Such services shall be furnished only at such hours, in such
places within the tenant's premises and under such reasonable regulations as may
be fixed by the Landlord.

     

    5.           No
awnings or other projections over or around the windows shall be installed by
any tenant, and only such window blinds as are supplied or permitted by the
Landlord shall be used in a tenant's premises.

     

    6.           There
shall not be used in any space, or in the public halls of the Building, either
by the Tenant or by jobbers or others, in the delivery or receipt of
merchandise, any hand trucks, except those equipped with rubber tires and side
guards.

     

    7.           All
entrance doors in each tenant's premises shall be left locked when the tenant's
premises are not in use.  Entrance doors shall not be left open at any
time.  All windows in each tenant's premises if operable shall be kept
closed at all times and all blinds therein above the ground floor shall be
lowered when and as reasonably required because of the position of the sun,
during the operation of the Building air conditioning system to cool or
ventilate the tenant's premises.

     

    8.           No
noise, including the playing of any musical instruments, radio or television,
which, in the judgment of the Landlord, might disturb other tenants in the
Building shall be made or permitted by any tenant.  Nothing shall be
done or permitted in any tenant's premises, and nothing shall be brought into or
kept in any tenant's premises, which would impair or interfere with any of the
Building services or the proper and economic heating, cleaning or other
servicing of the Building or the premises, or the use or enjoyment by any other
tenant of any other premises, nor shall there be installed by any tenant any
ventilating, air conditioning, electrical or other equipment of any kind which,
in the judgment of the Landlord, might cause any such impairment or
interference.  No dangerous, flammable, combustible or explosive
object or material shall be brought into the Building by any tenant or with the
permission of any tenant.

     

    9.           Tenant
shall not permit any cooking or food odors emanating within the Demised Premises
to seep into other portions of the Building.

    
      
         

      

      
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    10.         
No acids, vapor or other materials shall be discharged or permitted to be
discharged into the waste lines, vents or flues of the Building which may damage
them.  The water and wash closets and other plumbing fixtures in or
serving any tenant's premises shall not be used for any purpose other than the
purpose for which they were designed or constructed, and no sweepings, rubbish,
rags, acids or other foreign substances shall be deposited
therein.  All damages resulting from any misuse of the fixtures shall
be borne by the tenant who, or whose servants, employees, agents, visitors or
licensees, shall have caused the same.

     

    11.         
No signs, advertisement, notice or other lettering shall be exhibited,
inscribed, painted or affixed by any tenant on any part of the outside or inside
of the Building or inside the premises if visible from the outside without the
prior written consent of the Landlord.  In the event of the violation
of the foregoing by any tenant, Landlord may remove the same without any
liability, and may charge the expense incurred by such removal to the tenant or
tenants violating this rule.  Interior signs and lettering on doors
and elevators shall be inscribed, painted, or affixed for each tenant by
Landlord at the expense of such tenant, (the charge not to exceed that which a
reputable outside contractor would charge), and shall be of a size, color and
style reasonably acceptable to Landlord.  Landlord shall have the
right to prohibit any advertising by any tenant which impairs the reputation of
the building or its desirability as a building for offices, and upon written
notice from Landlord, Tenant shall refrain from or discontinue such
advertising.

     

    12.         
No additional locks or belts of any kind shall be placed upon any of the doors
or windows in any tenant's premises and no lock on any door therein shall be
changed or altered in any respect.  Upon the termination of a tenant's
lease, all keys of the tenant's premises and toilet rooms shall be delivered to
the Landlord.

     

    13.         
No tenant shall mark, paint, drill into or in any way deface any part of the
Building or the premises demised to such tenant.  No boring, cutting
or stringing of wires shall be permitted, except with the prior written consent
of Landlord, which will not be unreasonably withheld or delayed, and as Landlord
may reasonably direct.  No tenant shall install any resilient tile or
similar floor covering in the premises demised to such tenant except in a manner
approved by Landlord.

     

    14.         
No tenant shall use or occupy, or permit any portion of the premises demised to
such tenant to be used or occupied, as an office for a public stenographer or
typist, or as a barber or manicure shop, or as an employment
bureau.  No tenant or occupant shall engage or pay any employees in
the Building, except those actually working for such tenant or occupant in the
Building, nor advertise for laborers giving an address at the
Building.

     

    15.         
No premises shall be used, or permitted to be used, at any time, as a store for
the sale or display of goods, wares or merchandise of any kind, or as a
restaurant, shop, booth, bootblack or other stand, or for the conduct of any
business or occupation which predominantly involves direct patronage of the
general public in the premises demised to such tenant, or for manufacturing or
for other similar purposes.

    
      
         

      

      
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    16.         
The requirements of tenants will be attended only upon application at the office
of the Building.  Employees of Landlord shall not perform any work or
do anything outside of the regular duties, unless under special instructions
from the office of the Landlord.

     

    17.         
Each tenant shall, at its expense, provide artificial light in the premises
demised to such tenant for Landlord's agents, contractors and employees while
performing janitorial or other cleaning services and making repairs or
alterations in said premises.

     

    18.         
The tenant's employees shall not loiter around the hallways, stairways,
elevators, front, roof or any other part of the Building used in common by the
occupants thereof.

     

    19.         
If the premises demised to any tenant become infested with vermin, such tenant,
at its sole cost and expense, shall cause its premises to be exterminated, from
time to time, to the satisfaction of Landlord and shall employ such
exterminators therefor as shall be approved by Landlord.

     

    20.         
No bicycle or other vehicle and no animals shall be allowed in the showrooms,
offices, halls, corridors or any other parts of the Building.

     

    21.         
Tenant shall not, without Landlord’s prior written consent, install or operate
any heating device, refrigerating or air conditioning equipment, steam or
internal combustion engine, boiler, stove, machinery or mechanical devices upon
the premises or carry on any mechanical or manufacturing business thereon, or
use or permit to be brought into the Building flammable fluids such as gasoline,
kerosene, benzene or naphtha or use any illumination other than electric
lights.  All equipment, fixtures, lamps and bulbs shall be compatible
with, and not exceed the capacity of the Building’s electric
system.  No explosives, firearms, radioactive or toxic or hazardous
substances or materials, or other articles deemed hazardous to life, limb or
property shall be brought into the Building or the Premises.

     

    22.         
Tenant must list all furniture and fixtures to be taken from the Building upon a
form approved by Landlord.  Such list shall be presented at the office
of the Building for approval before acceptance by the security officer or
elevator operator.

     

    23.         
Tenant, its customers, invitees, licensees, agents, servants, employees and
guests shall not encumber or obstruct sidewalks, entrances, passages, courts,
vestibules, halls, elevators, stairways or other common areas in or about the
Building.

    
      
         

      

      
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    24.         
Tenant shall not allow anything to be placed against or near the glass in the
partitions between the premises and the halls or corridors of the Building which
shall diminish the light in the halls or corridors.

     

    25.         
Upon termination of this Lease, Tenant shall surrender all keys of the premises
and of the Building and give to Landlord the explanation of the combination of
all locks on safes or vault doors in the Premises.

     

    26.         
Tenant shall provide the Building Manager with keys to all locks on any doors of
the premises.  The Building Manager shall be allowed admittance to the
premises in the event of any emergency, fire or other casualty that may arise in
other appropriate instances.

     

    27.         
Unless otherwise advised by Landlord, neither Tenant nor its employees shall
undertake to regulate the radiator controls of thermostats.  Tenant
shall report to the office of the Building whenever such thermostats or radiator
controls are not working properly or satisfactorily.

     

    28.         
All window treatments that are visible from the street shall be subject to
Landlord’s approval.

     

    29.         
Tenant assumes full responsibility for protecting its space from weather, theft,
robbery and pilferage, which includes keeping doors locked and other means of
entry into the premises closed and secured.

     

    30.         
Tenant shall not sell food of any kind or cook in the
Building.  Tenant may serve complimentary foods to its guests provided
that it shall first comply with all Legal Requirements.

     

    31.         
Water in the premises shall not be wasted by Tenant or its employees by tying or
wedging back the faucets of the washbowls or otherwise.

     

    32.         
All messengers shall be required to sign in and obtain a pass from either the
front desk or the elevator starters.  Contractors and other workmen
shall use only the freight elevators for all movement within the
Building.

     

    33.         
Landlord reserves the right at any time, to install a message/package center in
an area in the Building designated by Landlord and reasonably accessible to and
for the common use of the tenants, and tenants shall comply with the procedures
for the same set forth by the Landlord.

    
      
         

      

      
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    SCHEDULE
D

     

    Cleaning
Specifications

     

    for

     

    623 Fifth
Avenue, New York, New York

     

    Landlord
will perform cleaning services in the Demised Premises and related areas as
follows:

     

    NIGHTLY

     

    Empty and
wipe clean all waste receptacles.

     

    Wipe
clean all accessible areas within hand high reach; including but not limited to
window sills, wall ledgers, chairs, desks, tables, file cabinets, convector
enclosures, pictures and all manner of office furniture.

     

    Wipe
clean all glass top desks and tables.

     

    Sweep
with treated cloths all composition tile flooring.

     

    Carpet
sweep all carpeted areas, and vacuum clean weekly.

     

    CORE LAVATORIES (Nightly or as
otherwise designated)

     

    Wash and
dry all bowls, seats urinals, washbasins and mirrors.

     

    Wash and
wipe dry all metal work.

     

    Insert
toilet tissue, toweling and soap, materials to be supplied by
Tenant.

     

    Empty
paper towel and sanitary napkin disposal receptacles and remove to designated
area.

     

    Sweep and
wash floors.

     

    Wipe
clean all sills, partitions and ledges.

     

    Wipe
clean exterior of waste cans and dispensing units.

     

    Wash
partitions monthly.

    
      
         

      

      
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    Wash tile
walls monthly.

     

    Wash and
dry interior of waste cans and sanitary disposal containers weekly.

     

    WINDOW CLEANING
SERVICES

     

    Clean all
exterior windows, inside and out periodically during the year, as Landlord deems
necessary.

     

    RUBBISH REMOVAL
SERVICES

     

    Empty all
ordinary dry rubbish waste baskets used in the normal course of business from
the office premises daily, Monday through Friday, holidays and week ends
excepted.

    
      
         

      

      
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    SCHEDULE
E

     

    Definitions

     

    (a)           The
term mortgage
shall include an indenture of mortgage and deed of trust to a trustee to secure
an issue of bond, encumbering on the leasehold estate under a Superior Lease,
and the term mortgagee shall include such a trustee.

     

    (b)           The
terms include, including and such as shall each be construed as if
followed by phrase "without being limited to".

     

    (c)           The
term obligations of this lease,
and words of like import, shall mean the covenants to pay rent and additional
rent under this lease and all of the other covenants and conditions contained in
this Lease.  Any provision in this Lease that one party or the other
or both shall do or not do or shall cause or permit or not cause or permit a
particular act, condition, or circumstance shall be deemed to mean that such
party so covenants or both parties so covenant, as the case may be.

     

    (d)           The
term Tenant's obligations
hereunder, and words of like import, and the term Landlord's obligations hereunder, and
words of like import, shall mean the obligations of this Lease which are to be
performed or observed by Tenant, or by Landlord, as the case may
be.  Reference to performance of either party's
obligations under this Lease shall be construed as "performance and
observance".

     

    (e)           Reference
to Tenant being or not being in default
hereunder, or words of like import, shall mean that Tenant is in default
in the performance of one or more of Tenant's obligations hereunder, or that
Tenant is not in default in the performance of any of Tenant's obligations
hereunder, or that a condition of the character described in Section 16.01 has
occurred and continues or has not occurred or does not continue, as the case may
be.

     

    (f)           The
term laws and/or requirements of public
authorities and words of like import shall mean laws and ordinances of
any or all of the Federal, state, city, county and borough governments and
rules, regulations, orders and/or directives of any or all departments,
subdivisions, bureaus, agencies or offices thereof, or of any other
governmental, public or quasi-public authorities, having jurisdiction in the
premises, and/or the direction of any public officer pursuant to
law.

     

    (g)           The
term requirements of insurance
bodies and words of like import shall mean rules, regulations, orders and
other requirements of the New York Board of Fire Underwriters and/or the New
York Fire Insurance Rating Organization and/or any other similar body performing
the same or similar functions and having jurisdiction or cognizance of the
Building and/or the Demised Premises.

    
      
         

      

      
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    (h)          The
term repair shall be deemed to
include restoration and replacement as may be necessary to achieve and/or
maintain good working order and condition.

     

    (i)           Reference
to termination of this lease
includes expiration or earlier termination of the term of this lease or
cancellation of this Lease pursuant to any of provisions of this lease or to
law.  Upon a termination of this Lease, the term and estate granted by
this Lease shall end at noon of the date of termination as if such date were the
date of expiration of the Term of this Lease and neither party shall have any
further obligation or liability to the other after such termination (i) except
as shall be expressly provided for in this Lease, or (ii) except for such
obligation as by its nature or under the circumstances can only be, or by the
provisions of this Lease, may be, performed after such termination, and, in any
event, unless expressly otherwise provided in this Lease, any liability for a
payment which shall have accrued to or with respect to any period ending at the
time of termination shall survive the termination of this Lease.

     

    (j)           The
term Tenant shall mean Tenant
herein named or any assignee or other successor in interest (immediate or
remote) of Tenant herein named, while such Tenant or such assignee or other
successor in interest, as the case may be, is in possession of the Demised
Premises as owner of Tenant's estate and interest granted by this
lease.

     

    (k)           Words
and phrases used in the singular shall be deemed to include the plural and vice
versa, and nouns and pronouns used in any particular gender shall be deemed to
include any other gender.

     

    (l)      
     The rule of ejusdem generis shall not be
applicable to limit a general statement following or referable to an enumeration
of specific matters to matters similar to the matters specifically
mentioned.

    
      
         

      

      
        78ASSET
PURCHASE AGREEMENT

     

    dated
as of February 16, 2010

     

    among

     

    Li3
Energy, Inc.,

     

    Next
Lithium Corp.

     

    and

     

    Next
Lithium (Nevada) Corp.

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    ASSET
PURCHASE AGREEMENT

     

    ASSET PURCHASE AGREEMENT, dated as of
February 16, 2010 (the “Agreement”), among Li3 Energy,
Inc., a Nevada corporation (“Buyer”), Next Lithium Corp.,
an Ontario corporation (“Next”) and Next Lithium
(Nevada) Corp., a Nevada corporation (“Next Nevada,” and, together
with Next, the “Seller
Group”).

     

    WHEREAS, Seller Group is a Party to (a)
an Agreement dated October 30, 2009 (the “CSV, LM and MW Option
Agreement”), attached hereto as Exhibit A, pursuant
to which Geoxplor Corp, a Nevada corporation (“Geoxplor”) has granted to
Seller Group the sole, exclusive and irrevocable right and option (the “CSV, LM and MW Option”),
exercisable in the manner described in Sections 5.1 and 9.1 of the CSV, LM and
MW Option Agreement, to acquire one hundred percent (100%) beneficial interest
in the association placer mining claims known as CSV Placer Mineral Claims, LM
Placer Mineral Claims and MW Placer Mineral Claims located in Big Smokey Valley
near Tonopah, Nevada, and as more particularly listed on Schedule B attached to
the CSV, LM and MW Option Agreement and incorporated herein by this reference
(the “CSV, LM and MW
Property”); and

     

    WHEREAS; Seller Group is a Party to (a)
an Agreement dated October 30, 2009 (the “BSV Option Agreement,” attached
hereto as Exhibit
B, and, together with the CSV, LM and MW Option Agreement, the “Option Agreements”), pursuant
to which Geoxplor has granted to Seller Group the sole, exclusive and
irrevocable right and option (the “BSV Option,” and, together
with the CSV, LM and MW Option, the “Options”), exercisable in the
manner described in Sections 5.1 and 9.1 of the BSV Option Agreement, to acquire
one hundred percent (100%) beneficial interest in the association placer mining
claims known as BSV Placer Mineral Claims located in Big Smokey Valley near
Tonopah, Nevada, and as more particularly listed on Schedule B attached to the
BSV Option Agreement and incorporated herein by this reference (the “BSV Property,” and, together
with the CSV, LM and MW Property, the “Property”); and

     

    WHEREAS, the parties desire that the
Seller Group sell, assign, transfer, convey and deliver to Buyer, and that Buyer
purchase and acquire from the Seller Group, all of the right, title and interest
of the Seller Group in and to the Purchased Assets (as hereinafter defined), and
that Buyer assume the Assumed Liabilities (as hereinafter defined), upon the
terms and subject to the conditions of this Agreement.

     

    NOW, THEREFORE, in consideration of the
foregoing premises and the respective representations and warranties, covenants
and agreements contained herein, the parties hereto agree as
follows:

     

    ARTICLE
I

    DEFINITIONS

     

    1.1         Definitions. When
used in this Agreement, the following terms shall have the meanings assigned to
them in this Article I or in the applicable Section of this Agreement to which
reference is made in this Article I.

     

    “Affiliate” means, with respect
to any specified Person, any other Person directly or indirectly controlling,
controlled by or under common control with such specified Person.

     

    “Ancillary Agreements” means
the other agreements, instruments and documents to be delivered at the
Closing.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    “Authorization” means any
authorization, approval, consent, certificate, license, permit or franchise of
or from any Governmental Entity or pursuant to any Law.

     

    “Books and Records” means books
of account, general, financial, warranty and shipping records, invoices,
supplier lists, product specifications, product formulations, drawings,
correspondence, engineering, maintenance, operating and production records,
advertising and promotional materials, credit records of customers and other
documents, records and files, in each case Related to the Purchased
Assets.

     

    “Business Day” means a day
other than a Saturday, Sunday or other day on which banks located in New York
City are authorized or required by Law to close.

     

    “Capital Stock” means (a) in
the case of a corporation, its shares of capital stock, (b) in the case of a
partnership or limited liability company, its partnership or membership
interests or units (whether general or limited), and (c) any other interest that
confers on a Person the right to receive a share of the profits and losses of,
or distribution of assets, of the issuing entity.

     

    “Charter Documents” means, with
respect to any entity, the certificate of incorporation, the articles of
incorporation, bylaws, articles of organization, limited liability company
agreement, partnership agreement, formation agreement, joint venture agreement
or other similar organizational documents of such entity (in each case, as
amended).

     

    “Code” means the Internal
Revenue Code of 1986.

     

    “Contract” means any agreement,
contract, license, lease, commitment, arrangement or understanding, written or
oral, including any sales order or purchase order.

     

    “Escrow Agent” means Gottbetter
& Partners, LLP.

     

    “Escrow Agreement” means the
Escrow Agreement among Next, the Buyer and the Escrow Agent, substantially in
the form set forth in Exhibit C attached hereto.

     

    “GAAP” means generally accepted
accounting principles in the United States.

     

    “Governmental Entity” means any
entity or body exercising executive, legislative, judicial, regulatory or
administrative functions of or pertaining to United States federal, state,
local, or municipal government, foreign, international, multinational or other
government, including any department, commission, board, agency, bureau,
subdivision, instrumentality, official or other regulatory, administrative or
judicial authority thereof, and any nongovernmental regulatory body to the
extent that the rules and regulations or orders of such body have the force of
Law.

     

    “HSR Act” means the
Hart-Scott-Rodino Antitrust Improvements Act of 1976.

     

    “Indebtedness” means any of the
following: (a) any indebtedness for borrowed money, (b) any obligations
evidenced by bonds, debentures, notes or other similar instruments, (c) any
obligations to pay the deferred purchase price of property or services, except
trade accounts payable and other current Liabilities arising in the ordinary
course of the Business, (d) any obligations as lessee under capitalized leases,
(e) any indebtedness created or arising under any conditional sale or other
title retention agreement with respect to acquired property, (f) any
obligations, contingent or otherwise, under acceptance credit, letters of credit
or similar facilities, and (g) any guaranty of any of the
foregoing.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Indemnitee” means any Person
that is seeking indemnification from an Indemnitor pursuant to the provisions of
this Agreement.

     

    “Indemnitor” means any party
hereto from which any Indemnitee is seeking indemnification pursuant to the
provisions of this Agreement.

     

    “Knowledge of Seller” or any
similar phrase means, with respect to any fact or matter, the actual knowledge
of the directors and executive officers of each member of the Seller Group,
together with such knowledge that such directors, executive officers or other
employees could be expected to discover after due investigation concerning the
existence of the fact or matter in question.

     

    “Law” means any statute, law
(including common law), constitution, treaty, ordinance, code, order, decree,
judgment, rule, regulation and any other binding requirement or determination of
any Governmental Entity.

     

    “Liability” means with respect
to any Person, any liability or obligation of such Person of any kind, character
or description, whether known or unknown, absolute or contingent, accrued or
unaccrued, disputed or undisputed, liquidated or unliquidated, secured or
unsecured, joint or several, due or to become due, vested or unvested,
executory, determined, determinable or otherwise, and whether or not the same is
required to be accrued on the financial statements of such Person.

     

    “Lien” means, with respect to
any property or asset, any mortgage, lien, pledge, charge, security interest,
adverse claim or other encumbrance in respect of such property or
asset.

     

    “Order” means any award,
injunction, judgment, decree, order, ruling, subpoena or verdict or other
decision issued, promulgated or entered by or with any Governmental Entity of
competent jurisdiction.

     

    “Other Antitrust Laws” means
the antitrust and competition Laws of all jurisdictions other than those of the
United States.

     

    “Permitted Liens” means Liens
for current real or personal property Taxes not yet due and payable and with
respect to which the Seller Group maintains adequate reserves.

     

    “Person” means an individual, a
corporation, a partnership, a limited liability company, a trust, an
unincorporated association, a Governmental Entity or any other entity or
body.

     

    “Policy” means any public
liability, product liability, general liability, comprehensive, property damage,
vehicle, life, hospital, medical, dental, disability, worker’s compensation, key
man, fidelity bond, theft, forgery, errors and omissions, directors’ and
officers’ liability, or other insurance policy of any nature.

     

    “Pre-Closing Environmental
Liabilities” means Liabilities arising out of (a) the ownership or
operation of the Business at any time on or prior to the Closing or (b) the
ownership, operation or condition of the Property or any other real property
currently or formerly owned, operated or leased by any member of the Seller
Group Related to the Property at any time on or prior to the Closing, in each
case to the extent based upon or arising out of (i) Environmental Law, (ii) a
failure to obtain, maintain or comply with any Environmental Permit, (iii) a
Release of any Hazardous Substance, or (iv) the use, generation, storage,
transportation, treatment, sale or other offsite disposal of Hazardous
Substances.

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    “Subsidiary” or “Subsidiaries” means, with
respect to any party, any Person, of which (i) such party or any other
Subsidiary of such party is a general partner (excluding partnerships, the
general partnership interests of which held by such party or any Subsidiary of
such party do not have a majority of the voting interest in such partnership) or
(ii) at least a majority of the securities or other interests having by their
terms ordinary voting power to elect a majority of the Board of Directors or
others performing similar functions with respect to such Person is directly or
indirectly owned or controlled by such party and/or by any one or more of its
Subsidiaries.

     

    “Tax” or “Taxes” means any and all
federal, state, local, or foreign net or gross income, gross receipts, net
proceeds, sales, use, ad valorem, value added, franchise, bank shares,
withholding, payroll, employment, excise, property, deed, stamp, alternative or
add-on minimum, environmental, profits, windfall profits, transaction, license,
lease, service, service use, occupation, severance, energy, unemployment, social
security, workers’ compensation, capital, premium, and other taxes, assessments,
customs, duties, fees, levies, or other governmental charges of any nature
whatever, whether disputed or not, together with any interest, penalties,
additions to tax, or additional amounts with respect thereto.

     

    “Tax Returns” means any return,
declaration, report, claim for refund, or information return or statement
relating to Taxes, including any schedule or attachment thereto, and including
any amendment thereof.

     

    “Taxing Authority” means any
Governmental Entity having jurisdiction with respect to any Tax.

     

    “$” means United States
dollars.

     

    1.2         Other Defined Terms.
The following terms have the meanings assigned to such terms in the Sections of
the Agreement set forth below:

     

    
      	
              Action

            	
              4.11(a)

            
	 
      	 
      
	
              Agreement

            	
              Preamble

            
	 
      	 
      
	
              Allocation
      Statement

            	
              2.5

            
	 
      	 
      
	
              Applicable
      Survival Period

            	
              10.1(d)

            
	 
      	 
      
	
              Assigned
      Contracts

            	
              2.1(c)

            
	 
      	 
      
	
              Assumed
      Liabilities

            	
              2.2

            
	 
      	 
      
	
              Business

            	
              4.8(g)

            
	 
      	 
      
	
              Buyer

            	
              Preamble

            
	 
      	 
      
	
              Buyer
      Closing Certificate

            	
              8.3(c)

            
	 
      	 
      
	
              Buyer
      Common Stock

            	
              2.4

            
	 
      	 
      
	
              Buyer
      Disclosure Schedule

            	
              Preamble
      Article V

            
	 
      	 
      
	
              Buyer
      Indemnitees

            	
              10.2(a)

            
	 
      	 
      
	
              Buyer
      Warranty Losses

            	
              10.2(b)

            

    

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    
      	
              CERCLA

            	
              4.12(a)(iv)

            
	 
      	 
      
	
              Closing

            	
              3.1

            
	 
      	 
      
	
              Closing
      Date

            	
              3.1

            
	 
      	 
      
	
              Confidentiality
      Agreement

            	
              ???

            
	 
      	 
      
	
              Consents

            	
              4.3(a)

            
	 
      	 
      
	
              Environment

            	
              4.12(a)(i)

            
	 
      	 
      
	
              Environmental
      Action

            	
              4.12(a)(ii)

            
	 
      	 
      
	
              Environmental
      Cleanup Site

            	
              4.12(a)(iii)

            
	 
      	 
      
	
              Environmental
      Laws

            	
              4.12(a)(iv)

            
	 
      	 
      
	
              Environmental
      Permit

            	
              4.12(a)(v)

            
	 
      	 
      
	
              Excluded
      Liabilities

            	
              2.3

            
	 
      	 
      
	
              Hazardous
      Substances

            	
              4.12(a)(vi)

            
	 
      	 
      
	
              Losses

            	
              10.2(a)

            
	 
      	 
      
	
              Noncompetition
      Period

            	
              6.8(a)

            
	 
      	 
      
	
              Nondisclosure
      Agreements

            	
              4.9(c)

            
	 
      	 
      
	
              Notice
      of Claim

            	
              10.4(a)

            
	 
      	 
      
	
              PCBs

            	
              4.21(i)

            
	 
      	 
      
	
              Policies

            	
              4.22(a)

            
	 
      	 
      
	
              Post-Closing
      Tax Period

            	
              7.5(b)

            
	 
      	 
      
	
              Pre-Closing
      Tax Period

            	
              7.5(b)

            
	 
      	 
      
	
              Proprietary
      Information

            	
              4.9(a)

            
	 
      	 
      
	
              Purchase
      Price

            	
              2.4(a)

            
	 
      	 
      
	
              Purchase
      Price Shares

            	
              2.4(a)

            
	 
      	 
      
	
              Purchased
      Assets

            	
              2.1

            
	 
      	 
      
	
              RCRA

            	
              4.12(a)(iv)

            
	 
      	 
      
	
              Release

            	
              4.12(a)(vii)

            

    

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    
      	
              Representatives

            	
              6.3

            
	 
      	 
      
	
              Restricted
      Business

            	
              6.8(a)

            
	 
      	 
      
	
              Restricted
      Contract

            	
              2.6(a)

            
	 
      	 
      
	
              Section
      1060 Forms

            	
              2.5

            
	 
      	 
      
	
              Seller
      Closing Certificate

            	
              8.2(c)

            
	 
      	 
      
	
              Seller
      Disclosure Schedule

            	
              Preamble
      Article IV

            
	 
      	 
      
	
              Seller
      Group

            	
              Recitals

            
	 
      	 
      
	
              Seller
      Indemnitees

            	
              10.3(a)

            
	 
      	 
      
	
              Seller
      Warranty Losses

            	
              10.3(b)

            
	 
      	 
      
	
              Third
      Party Claim

            	
              10.4(a)

            
	 
      	 
      
	
              Third
      Party Defense

            	
              10.4(b)

            

    

    

    ARTICLE
II

    PURCHASE
AND SALE

     

    2.1         Purchase and Sale of the
Purchased Assets. Upon the terms and subject to the conditions of this
Agreement, at the Closing, Seller Group shall sell, assign, transfer, convey and
deliver to Buyer or a Subsidiary of Buyer designated by Buyer in writing to the
Seller Group not less than one Business Day prior to the Closing, and Buyer or such Subsidiary shall purchase, acquire
and accept from the
Seller Group, free and clear of Liens except for Permitted Liens, the entire
right, title and interest of Seller Group in, to and under the following assets,
properties and rights (the “Purchased
Assets”):

     

    (a)           the
Option Agreements;

     

    (b)          all
Proprietary Information;

     

    (c)          all
Contracts related to the Option Agreements (together with the Option Agreements,
the “Assigned
Contracts”);

     

    (d)          all
Books and Records;

     

      
        

      

    

    (e)          all
claims, causes of action, choses in action, rights of recovery and rights under
all warranties, representations and guarantees arising from or relating to the
other Purchased Assets;

     

    (f)           all
insurance benefits, including rights and proceeds, arising from or relating to
the other Purchased Assets; and

     

    (g)          all
security deposits, earnest deposits and all other forms of deposit or security
placed with or by any member of the Seller Group for the performance of an
Assigned Contract. 

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    2.2         Assumed Liabilities.
Upon the terms and subject to the conditions of this Agreement, Buyer or a
Subsidiary of Buyer designated by Buyer in writing to the Seller Group not less
than one Business Day prior to the Closing shall assume effective as of the
Closing, and from and after the Closing, Buyer or
such Subsidiary shall pay, discharge or perform when due, as appropriate, only
the following Liabilities of the Seller Group (the “Assumed Liabilities”), and no
other Liabilities:

     

    all
Liabilities in respect of the Assigned Contracts, but only to the extent that
such Liabilities thereunder arise or are required to be performed after the
Closing Date and do not relate to any failure to perform, improper performance,
warranty or other breach, default or violation by any member of the Seller Group
on or prior to the Closing.

     

    2.3         Excluded Liabilities.
Neither Buyer nor any of its Affiliates shall assume
any Liabilities of the Seller Group (such unassumed Liabilities, the “Excluded Liabilities”) other
than those specifically set forth in Section 2.2. Without limiting the
generality of the foregoing, in no event shall Buyer or any of its Affiliates
assume or incur any Liability in respect of, and the Seller Group shall remain
bound by and liable for, and shall pay, discharge or perform when due, the
following Liabilities of the Seller Group:

     

    (a)          all
Liabilities for (i) Taxes relating to the Purchased Assets for any Pre-Closing
Tax Period and (ii) Taxes of the Seller Group or any Affiliate of the Seller
Group;

     

    (b)          all
Liabilities in respect of the Contracts and assets other than the Purchased
Assets;

     

    (c)          all
product Liability, warranty and similar claims for damages or injury to person
or property, claims of infringement of intellectual property rights and all
other Liabilities, regardless of when made or asserted, which arise out of or
are based upon any events occurring or actions taken or omitted to be taken by
any member of the Seller Group, or otherwise arising out of or incurred in
connection with the Purchased Property, on or before the Closing
Date;

     

    (d)          all
Pre-Closing Environmental Liabilities; 

     

    (e)          all
Indebtedness of the Seller Group; and

     

    (f)          all
Liabilities arising out of or incurred in connection with the negotiation,
preparation and execution of this Agreement and the Ancillary Agreements and the
consummation of the transactions contemplated hereby and thereby, including
Taxes and fees and expenses of counsel, accountants and other
experts.

     

    2.4         Purchase
Price.

     

    (a) The
aggregate consideration to be paid by Buyer to the Seller Group for the
Purchased Assets (the “Purchase
Price”) shall be (i) 4,000,000 newly issued shares (the “Purchase Price Shares”) of the
common stock, par value $0.001 per share, of the Buyer (“Buyer Common Stock”), and (ii)
the assumption of the Assumed Liabilities.

     

    (b)  Next,
on behalf of the Seller Group, shall not be entitled to receive immediately the
Purchase Price Shares; Purchase Price Shares shall be deposited in escrow
pursuant to Section 3.4 and shall be held and disposed of in accordance with the
terms of the Escrow Agreement.  The Purchase Price Shares shall be
delivered as provided in Section 3.3(a).

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    2.5         Allocation. As soon
as reasonably practicable following the Closing, Buyer shall deliver to the
Seller Group an allocation statement setting forth Buyer’s allocation of the
Purchase Price for Tax purposes pursuant to Section 1060 of the Code and any
other applicable Tax Laws (as the same may be revised pursuant to the following
sentence, the “Allocation
Statement”). Except as otherwise
required by Law, Buyer and the Seller Group shall, and each member of the Seller
Group shall cause each other member of the Seller Group to, file all Tax Returns
(such as IRS Form 8594 or any other forms or reports required to be filed
pursuant to Section 1060 of the Code or any comparable provisions of Law (“Section 1060 Forms”)) in a
manner that is consistent with the Allocation Statement and refrain from taking
any action inconsistent therewith. Buyer and the Seller Group shall, and each
member of the Seller Group shall cause each other member of the Seller Group to,
cooperate in the preparation of Section 1060 Forms and file such Section 1060
Forms timely and in the manner required by applicable Law. Buyer and the Seller
Group agree to treat any payments made pursuant to the indemnification
provisions of this Agreement as an adjustment to the Purchase Price for Tax
purposes.

     

    2.6         Consents.

     

    (a)           Notwithstanding
anything in this Agreement to the contrary, this Agreement shall not constitute
an agreement to sell, assign, transfer, convey or deliver any Purchased Asset or
any benefit arising under or resulting from such Purchased Asset if the sale,
assignment, transfer, conveyance or delivery thereof, without the Consent of a
third party, (i) would constitute a breach or other contravention of the rights
of such third party, (ii) would be ineffective with respect to any party to a
Contract concerning such Purchased Asset, or (iii) would, upon transfer, in any
way adversely affect the rights of Buyer under such Purchased Asset. If the
sale, assignment, transfer, conveyance or delivery by any member of the Seller
Group to, or any assumption by Buyer of, any interest in, or Liability under,
any Purchased Asset requires the Consent of a third party, then such sale,
assignment, transfer, conveyance, delivery or assumption shall be subject to
such Consent being obtained. Without limiting subsection (b) below, to the
extent any Assigned Contract may not be assigned to Buyer by reason of the
absence of any such Consent (“Restricted Contract”), Buyer shall not be
required to assume any Assumed Liabilities arising
under such Restricted Contract.

     

    (b)           To
the extent that any Consent in respect of a Restricted Contract or any other
Purchased Asset shall not have been obtained on or before the Closing Date,
Buyer may elect to proceed with the Closing, in which case, the Seller Group
shall continue to use reasonable best efforts to obtain any such Consent after
the Closing Date until such time as it shall have been obtained. The Seller
Group shall cooperate with Buyer in any economically feasible arrangement
proposed by Buyer to provide that Buyer shall receive the interest of the Seller
Group in the benefits under such Restricted Contract or other Purchased Asset.
The Seller Group shall pay and discharge, and shall indemnify and hold harmless,
Buyer and its Affiliates from and against any and all out-of-pocket costs of
seeking to obtain or obtaining any such Consent whether before or after the
Closing Date. As soon as a Consent for the sale, assignment, transfer,
conveyance, delivery or assumption of a Restricted Contract or other Purchased
Asset is obtained, Next shall promptly assign, transfer, convey and deliver such
Restricted Contract or Purchased Asset to Buyer, and Buyer shall assume the
Assumed Liabilities under any such Restricted Contract from and after the date
of assignment to Buyer pursuant to a special-purpose assignment and assumption
agreement in form and substance reasonably satisfactory to Buyer.

     

    (c)           Nothing
contained in this Section or elsewhere in this Agreement shall be deemed a
waiver by Buyer of its right to have received on the Closing Date an effective
assignment of all of the Purchased Assets or of the covenant of the Seller Group
to obtain all Consents, nor shall this Section or any other provision of this
Agreement be deemed to constitute an agreement to exclude from the Purchased
Assets any Assigned Contracts or other Purchased Asset as to which a Consent may
be necessary.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    ARTICLE
III

    CLOSING

     

    3.1         Closing Date. The
closing of the Transactions contemplated by this Agreement (the “Closing”) shall take place at
the offices of Gottbetter & Partners, LLP, 488 Madison Avenue, 12th Floor,
New York, New York, 10022, at 10:00 a.m. on a date to be specified by the
parties, which shall be no later than two Business Days after satisfaction (or
waiver as provided herein) of the conditions set forth in Article VIII (other
than those conditions that by their nature will be satisfied at the Closing),
unless another time, date and/or place is agreed to in writing by the parties.
The date on which the Closing occurs is referred to in this Agreement as the
“Closing
Date.”

     

    3.2         Deliveries by Seller Group
at the Closing. At the Closing, the Seller Group shall deliver to Buyer
the following:

     

    (a)          a
memorandum of this Agreement acceptable to Buyer, duly executed
by each member of the Seller Group, for the purpose of recording the same in the
records of Clark County, Nevada, so as to give public notice, pursuant to the
laws of the State of Nevada, of the existence of this Agreement;

     

    (b)          such
other good and sufficient instruments of transfer as Buyer reasonably deems
necessary and appropriate to vest in Buyer all right, title and interest in, to
and under the Purchased Assets;

     

    (c)          the
Power of Attorney contemplated by Section 6.9 duly executed by each relevant
member of the Seller Group; and

     

    (d)          the
Seller Closing Certificate.

     

    3.3         Deliveries by Buyer at the
Closing.

     

    (a) At
the Closing, Buyer shall deliver to the Seller Group the Buyer Closing
Certificate.

     

    (b) At
the Closing, Buyer shall execute and deliver to the Seller Group, and each
member of the Seller Group shall countersign, an agreement in form and substance
satisfactory to Buyer and the Seller Group and containing customary terms for
such an agreement, providing that if the Purchase Price Shares cannot be resold
under Rule 144 without restriction at any time following the 13th
month  after Closing due to Buyer’s status as a former “shell” company
and its failure to file  required reports with the Securities and
Exchange Commission (the “SEC”), and not because of any fault of any member of
the Seller Group, Buyer will register the Purchase Price Shares with the SEC for
resale on Form S-1 or such other form as may then be available for such
registration.

     

    (b) In
addition, at the Closing, Buyer shall (i) reimburse the Seller Group for the
reasonable, documented legal expenses incurred by the Seller Group in connection
with this Agreement and the other agreements contemplated herein and the offer
letter dated November 24, 2009, up to a maximum of CAD$25,000, and (ii) deliver
CAD$25,000 to Colonnade Capital Corp. as directed in writing by the Seller
Group, in connection with the letter agreement dated August 20, 2009 in respect
of the identification and evaluation of mining claims.

    
      
         

      

      
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    3.4         Escrow. On the
Closing Date, the Buyer shall deliver to the Escrow Agent a certificate (issued
in the name of the Escrow Agent or its nominee) representing the Purchase Price
Shares, as described in Section 2.4(b), for the purpose of securing the
indemnification obligations of the Seller Group set forth in this
Agreement.  The Purchase Price Shares shall be held by the Escrow
Agent pursuant to the Escrow Agreement.  The Purchase Price Shares
shall be held as a trust fund and shall not be subject to any lien, attachment,
trustee process or any other judicial process of any creditor of any Party, and
shall be held and disbursed solely for the purposes and in accordance with the
terms of the Escrow Agreement.  If directed in writing by any member
of the Seller Group, Buyer will issue certificates for the Purchase Price Shares
in the names of such member’s stockholders who shall have agreed, in form
satisfactory to Buyer, to be bound by the terms of the Escrow Agreement, in such
amounts as such member shall direct.

     

    ARTICLE
IV

    REPRESENTATIONS
AND WARRANTIES OF SELLER GROUP

     

    Each
member of the Seller Group, jointly and severally, represents and warrants to
Buyer as of the date hereof and as of the Closing Date that the statements
contained in this Article IV are true and correct, except as set forth in the
disclosure schedule dated and delivered as of the date hereof by the Seller
Group to Buyer (the “Seller
Disclosure Schedule”), which is attached
to this Agreement and is designated therein as being the Seller
Disclosure Schedule. The Seller Disclosure Schedule shall be arranged in
paragraphs corresponding to each representation and warranty set forth in this
Article IV. Each exception to a representation and warranty set forth in the
Seller Disclosure Schedule shall qualify the specific representation and
warranty which is referenced in the applicable paragraph of the Seller
Disclosure Schedule, and no other representation or warranty.

     

    4.1         Organization and Good
Standing. Each member of the Seller Group is a corporation, limited
liability company or other legal entity duly organized, validly existing and in
good standing under the Laws of the jurisdiction of its incorporation or
formation, has all requisite power to own, lease and operate its properties and
to carry on its business as now being conducted and as proposed to be conducted,
and is duly qualified to do business and is in good standing in each
jurisdiction in which it owns or leases property or conducts any business so as
to require such qualification. No member of the Seller Group is in
default under its Charter Documents.

     

      
        

      

    

    4.2         Authority and
Enforceability.

     

    (a)           Each
member of the Seller Group has the requisite power and authority to enter into
this Agreement and to consummate the transactions contemplated hereby. The
execution and delivery of this Agreement and the consummation of the
transactions contemplated hereby have been duly authorized by all necessary
corporate action on the part of each member of the Seller Group. Each member of
the Seller Group has duly executed and delivered this Agreement. This Agreement
constitutes the valid and binding obligation of each member of the Seller Group,
enforceable against it in accordance with its terms, except as such
enforceability may be limited by (i) bankruptcy, insolvency, reorganization,
moratorium or other similar Laws affecting or relating to creditors’ rights
generally, and (ii) the availability of injunctive relief and other equitable
remedies.

     

    (b)           Each
member of the Seller Group has the requisite power and authority to enter into
each Ancillary Agreement to which it is, or is specified to be, a party, and to
consummate the transactions contemplated thereby. The execution and delivery by
each member of the Seller Group of each Ancillary Agreement to which it is, or
specified to be, a party and the consummation of the transactions contemplated
thereby have been duly authorized by all necessary corporate, limited liability
company or other action on the part of each such member of the Seller Group.
Prior to the Closing, each member of the Seller Group will have duly executed
and delivered each Ancillary Agreement to which it is, or specified to be, a
party. The Ancillary Agreements will constitute the valid and binding obligation
of each member of the Seller Group party thereto, enforceable against it in
accordance with its terms, except as such enforceability may be limited by (i)
bankruptcy, insolvency, reorganization, moratorium or other similar Laws
affecting or relating to creditors’ rights generally, and (ii) the availability
of injunctive relief and other equitable remedies. This Agreement and the
Ancillary Agreements will effectively vest in Buyer good, valid and marketable
title to all the Purchased Assets free and clear of all Liens.

    
      
         

      

      
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    4.3         No Conflicts;
Consents.

     

    (a)           The
execution and delivery of this Agreement by each member of the Seller Group do
not, and the execution and delivery of each Ancillary Agreement to which each
member of the Seller Group is, or specified to be, a party, the performance by
each member of the Seller Group of its obligations hereunder and thereunder and
the consummation by each member of the Seller Group of the transactions
contemplated hereby and thereby (in each case, with or without the giving of
notice or lapse of time, or both), will not, directly or indirectly, (i) violate
the provisions of any of the Charter Documents of any member of the Seller
Group, (ii) violate or constitute a default, an event of default or an event
creating rights of acceleration, termination, cancellation, imposition of
additional obligations or loss of rights under any Contract (A) to which any
member of the Seller Group is a party, (B) of which any member of the Seller
Group is a beneficiary or (C) by which any member of the Seller Group or any of
their respective assets is bound, (iii) violate or conflict with any Law,
Authorization or Order applicable to any member of the Seller Group, or give any
Governmental Entity or other Person the right to challenge any of the
transactions contemplated by this Agreement or the Ancillary Agreements or to
exercise any remedy, obtain any relief under or revoke or otherwise modify any
rights held under, any such Law, Authorization or Order, or (iv) result in the
creation of any Liens upon any of the assets owned or used by any member of the
Seller Group. There are no consents, waivers, assignments or other approvals or
actions that are required in connection with the transactions contemplated by
this Agreement under any Contract to which any member of the Seller Group is a
party (collectively, “Consents”) in order (i) in the
case of Contracts that are not Assigned Contracts, to preserve all rights and
benefits of the Seller Group thereunder and (ii) in the case of Contracts that
are Assigned Contracts, to sell, assign, transfer, convey and deliver to, Buyer
all rights and benefits of the Seller Group thereunder without any impairment or
alteration whatsoever, except such as have been delivered to Buyer on or before
the date of this Agreement.

     

    (b)          No
Authorization or Order of, registration, declaration or filing with, or notice
to, any Governmental Entity or other Person, is required by or with respect to
any member of the Seller Group in connection with the execution and delivery of
this Agreement and the Ancillary Agreements and the consummation of the
transactions contemplated hereby and thereby.

     

    4.4         Taxes.

     

    (a)           All
Tax Returns required to have been filed by or with respect to each member of the
Seller Group have been duly and timely filed (or, if due between the date hereof
and the Closing Date, will be duly and timely filed), and each such Tax Return
correctly and completely reflects Liability for Taxes and all other information
required to be reported thereon. All Taxes owed by any member of the Seller
Group (whether or not shown on any Tax Return) have been timely paid (or, if due
between the date hereof and the Closing Date, will be duly and timely paid).
Each member of the Seller Group has adequately provided for, in its books of
account and related records, Liability for all unpaid Taxes, being current Taxes
not yet due and payable.

     

    (b)           There
is no action or audit now proposed, threatened or pending against, or with
respect to, any member of the Seller Group in respect of any Taxes. No member of
the Seller Group is the beneficiary of any extension of time within which to
file any Tax Return, nor has any member of the Seller Group made (or had made on
its behalf) any requests for such extensions. No claim has ever been made by an
authority in a jurisdiction where any member of the Seller Group does not file
Tax Returns that any of them is or may be subject to taxation by that
jurisdiction or that any of them must file Tax Returns. There are no Liens on
any of the stock or assets of any member of the Seller Group with respect to
Taxes.

    
      
         

      

      
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    (c)           Each
member of the Seller Group has withheld and timely paid all Taxes required to
have been withheld and paid and has complied with all information reporting and
backup withholding requirements, including maintenance of required records with
respect thereto.

     

    (d)           There
is no dispute or claim concerning any Liability for Taxes with respect to any
member of the Seller Group for which notice has been provided, or which is
asserted or threatened, or which is otherwise known to any member of the Seller
Group. No issues have been raised in any Taxes examination with respect to any
member of the Seller Group which, by application of similar principles, could be
expected to result in Liability for Taxes for any member of the Seller Group or
period not so examined. Each member of the Seller Group has delivered to Buyer
correct and complete copies of all federal income Tax Returns, examination
reports, and statements of deficiencies assessed against or agreed to by any
member of the Seller Group since January 1, 2007. No member of the Seller Group
has waived (or is subject to a waiver of) any statute of limitations in respect
of Taxes or has agreed to (or is subject to) any extension of time with respect
to a Tax assessment or deficiency.

     

    (e)           None
of the assets or properties of any member of the Seller Group constitutes
tax-exempt bond financed property or tax-exempt use property within the meaning
of Section 168 of the Code. No member of the Seller Group is a party to any
“safe harbor lease” within the meaning of Section 168(f)(8) of the Code, as in
effect prior to amendment by the Tax Equity and Fiscal Responsibility Act of
1982, or to any “long-term contract” within the meaning of Section 460 of the
Code. No member of the Seller Group has ever been a United States real property
holding corporation within the meaning of Section 897(c)(2) of the Code. No
foreign member of the Seller Group has ever held a “United States real property
interest” within the meaning of Section 897(1)(1) of the Code. No member of the
Seller Group is a “foreign person” within the meaning of Section 1445 of the
Code. No member of the Seller Group has made any payments, is obligated to make
any payments, or is a party to any agreement that under certain circumstances
could obligate it to make payments that would result in a nondeductible expense
under Section 280G of the Code or an excise Tax to the recipient of such
payments pursuant to Section 4999 of the Code. No member of the Seller Group has
participated in or cooperated with an international boycott as defined in
Section 999 of the Code.

     

    (f)           No
member of the Seller Group has agreed to or is required to make by reason of a
change in accounting method or otherwise, or could be required to make by reason
of a proposed or threatened change in accounting method or otherwise, any
adjustment under Section 481(a) of the Code. No member of the Seller Group has
been the “distributing corporation” (within the meaning of Section 355(c)(2) of
the Code) with respect to a transaction described in Section 355 of the Code
within the 5year period ending as of the date of this Agreement. No member of
the Seller Group has received (or is subject to) any ruling from any Taxing
Authority or has entered into (or is subject to) any agreement with a Taxing
Authority. Each member of the Seller Group has disclosed on its federal income
Tax Returns all positions taken therein that could give rise to a substantial
understatement of federal income Tax within the meaning of Section 6662 of the
Code.

     

    (g)           No
member of the Seller Group is a party to any Tax allocation or sharing
agreement. No member of the Seller Group has any Liability for the Taxes of any
Person, other than under Section 1.15026 of the Treasury regulations (or any
similar provision of state, local, or foreign Law) with respect to any Relevant
Group of which such member of the Seller Group currently is a member, (i) as a
transferee or successor, (ii) by contract, (iii) under Section 1.15026 of the
Treasury regulations (or any similar provision of state, local or foreign Law),
or (iv) otherwise. No member of the Seller Group is a party to any joint
venture, partnership or other arrangement that is treated as a partnership for
federal income tax purposes.

    
      
         

      

      
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    (h)           No
member of the Seller Group will be required to include any item of income in, or
exclude any item of deduction from, taxable income for any taxable period (or
portion thereof) ending after the Closing Date as a result of any: (i)
intercompany transactions or excess loss accounts described in Treasury
regulations under Section 1502 of the Code (or any similar provision of state,
local, or foreign Tax Law), (ii) installment sale or open transaction
disposition made on or prior to the Closing or (iii) prepaid amount received on
or prior to the Closing.

     

    (i)           No
member of the Seller Group that is incorporated in a non-U.S. jurisdiction has,
or at any time has had, an investment in “United States property” within the
meaning of Section 956(c) of the Code. No member of the Seller Group is, or at
any time has been, a passive foreign investment company within the meaning of
Section 1297 of the Code and no member of the Seller Group is a shareholder,
directly or indirectly, in a passive foreign investment company. No member of
the Seller Group that is incorporated in a non-U.S. jurisdiction is, or at any
time has been, engaged in the conduct of a trade or business within the United
States, or treated as or considered to be so engaged.

     

    (i)           No
member of the Seller Group is or at any time has been subject to the dual
consolidated loss provisions of Section 1503(d) of the Code, (ii) the overall
foreign loss provisions of Section 904(f) of the Code or (iii) the
recharacterization provisions of Section 952(c)(2) of the Code. No member of the
Seller Group has any “nonrecaptured net Section 1231 losses” within the meaning
of Section 1231(c)(2) of the Code.

     

    4.5         Compliance with
Law.

     

    (a)           Each
member of the Seller Group has conducted, and is conducting, its business in
compliance with all applicable Laws.

     

    (b)          No
event has occurred and no circumstances exist that (with or without the passage
of time or the giving of notice) may result in a violation of, conflict with or
failure on the part of any member of the Seller Group to conduct its business in
compliance with, any applicable Law. No member of the Seller Group has
received notice regarding any violation of, conflict with, or failure to conduct
the its business in compliance with, any
applicable Law.

     

    4.6         Business
Authorizations.  There are no Authorizations which are
necessary for any member of the Seller Group to conduct its business as
currently conducted or as proposed to be conducted or for the ownership and use
of the assets owned or used by such member of the Seller Group in the conduct of
its business.

     

    4.7         Title to Purchased
Assets.

     

    (a)           A
member of the Seller Group has good and transferable title to all such Purchased
Assets, free and clear of all Liens except for Permitted Liens. No Purchased
Asset is leased.

     

    4.8         Mining
Claims.  With respect to each Property:

     

    (a)           the
Property is comprised of the association placer mining claims listed on Schedule
B attached to each of the Option Agreements;

    
      
         

      

      
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    (b)           no
member of Seller Group has received any notice of expropriation and is not aware
of any intention of any party to expropriate any part of the
Property;

     

    (c)           there
is as or the date of this Agreement no litigation or proceeding, including
appeals or applications for review, in progress and, to the best of Seller’s
Knowledge, no litigation or claim threatened against or relating to any member
of the Seller Group directly affecting the Property, and there is not presently
outstanding against any member of the Seller Group any judgment, decree,
injunction, rule or order of any court, government department, commission,
agency or arbitration which materially adversely affects the
Property:

     

    (d)           subject
to the Permitted Encumbrances and compliance therewith, the execution and
delivery of the applicable Option Agreement and the exercise by Buyer of the
rights granted to it under the applicable Option Agreement will not conflict
with or be in contravention of any law, regulation or order of any government,
government department or other competent authority or conflict with rights of
third parties or result in a breach of or default under any agreement or other
instrument of obligation to which any member of the Seller Group is a party or
by which any member of the Seller Group or the Property may be
bound;

     

    (e)           the
applicable Option Agreement constitutes a legal, valid and binding obligation of
each member of the Seller Group enforceable against it in accordance with its
terms under the laws of the Province of Ontario, subject to bankruptcy,
insolvency, reorganization, moratorium and other laws of general application
affecting creditors’ rights and the discretion exercisable by courts of
competent jurisdiction in respect of the availability of equitable remedies and
application of equitable principles.

     

    (f)           No
Governmental Entity having the power of eminent domain over the Property has
commenced or, to Seller’s Knowledge, intends to exercise the power of eminent
domain or a similar power with respect to all or any part of the Property. There
are no pending or, to Seller’s Knowledge, threatened condemnation, fire, health,
safety, building, zoning or other land use regulatory proceedings, lawsuits or
administrative actions relating to any portion of the Property or any other
matters which do or may adversely affect the current use, occupancy or value
thereof. No member of the Seller Group has received notice of any pending or
threatened special assessment proceedings affecting any portion of the
Property.

     

    (g)           The
Property and all present uses and operations of the Property comply with all
Laws, covenants, conditions, restrictions, easements, disposition agreements and
similar matters affecting the Property. The Property and its continued use,
occupancy and operation as used, occupied and operated in the conduct of the
business of metals and minerals mining (the “Business”) do not constitute a
nonconforming use and is not the subject of a special use permit under any
Law.

     

    (h)           The
Property is in suitable condition for the conduct of the Business as currently
conducted and as proposed to be conducted. Each member of the Seller Group has
good and valid rights of ingress and egress to and from all Property from and to
the public street systems for all usual street, road and utility
purposes.

     

    (i)           No
Person other than a member of the Seller Group is in possession of any of the
Property or any portion thereof, and there are no leases, subleases, licenses,
concessions or other agreements, written or oral, granting to any Person other
than the Seller Group the right of use or occupancy of the Property or any
portion thereof. No easement, utility transmission line or water main located on
the Property adversely affects the use of the Property or any improvement on the
Property.

    
      
         

      

      
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    (j)           No
fact or condition exists which could result in the termination or material
reduction of the current access from the Property to existing roads or to
utility services presently serving the Property.

     

    4.9         Proprietary Information;
Intellectual Property.

     

    (a)           As
used in this Agreement, “Proprietary Information” means
all trade secrets, technical data, databases, customer lists, designs, tools,
methods, processes, technology, ideas, knowhow, source code, product road maps
and other proprietary information and materials relating to the other Purchased
Assets, including, without limitation, the Canadian National Instrument 43-101
Report by Coast Mountain Geological Ltd., dated September 4, 2009, relating to
the Property (the “Coast
Mountain Report”).

     

    (b)           No
member of the Seller Group has infringed or infringes upon, or otherwise
unlawfully used or uses, any intellectual property rights of a third party in
any way directly or indirectly related to the Purchased Assets. No member of the
Seller Group has received any communication alleging that a member of the Seller
Group or any of their respective activities or operations infringe upon or
otherwise unlawfully use any intellectual property rights of a third party nor,
to Seller’s Knowledge, is there any basis therefor.

     

    (c)           The
documentation relating to the Proprietary Information is current, accurate and
sufficient in detail and content to identify and explain it and to allow its
full and proper use without reliance on the special knowledge or memory of
others. Each member of the Seller Group has taken commercially reasonable steps
to protect and preserve the confidentiality of all Proprietary Information owned
by any member of the Seller Group. Any receipt or use by, or disclosure to, a
third party of Proprietary Information owned by any member of the Seller Group
has been pursuant to the terms of binding written confidentiality and nonuse
agreement between a member of the Seller Group and such third party (“Nondisclosure Agreements”).
True and complete copies of the Nondisclosure Agreements, and any amendments
thereto, have been provided to Buyer. Each member of the Seller Group is, and to
Seller’s Knowledge, all other parties thereto are, in compliance with the
provisions of the Nondisclosure Agreements. Each member of the Seller Group is
in compliance with the terms of all Contracts pursuant to which a third party
has disclosed to, or authorized such member of the Seller Group to use,
Proprietary Information Related to the Purchased Assets owned by such third
party.

     

    (d)           No
Action has been instituted, or, to Seller’s Knowledge, is threatened, relating
to any Proprietary Information, and none of the Proprietary Information is
subject to any outstanding Order. To Seller’s Knowledge, no Person has
misappropriated or is misappropriating any Proprietary Information.

     

    (e)           No
Proprietary Information has been distributed, sold or licensed to a third party
by any member of the Seller Group.

     

    (f)           To
Seller’s Knowledge, the Coast Mountain Report does not contain any untrue
statement of a material fact or omit to state any material fact necessary to
make the statements therein not misleading.

     

    (g)           The
execution and delivery of this Agreement by each member of the Seller Group does
not, and the consummation of the transactions contemplated hereby (in each case,
with or without the giving of notice or lapse of time, or both), will not,
directly or indirectly, result in the loss or impairment of any member of the
Seller Group’s rights to own any of its Proprietary Information, nor require the
consent of any Governmental Entity or other third party in respect of any such
Proprietary Information.

    
      
         

      

      
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    4.10       Assigned
Contracts.

     

    (a)           The
Assigned Contracts are only the Option Agreements.

     

    (b)           Each
Assigned Contract is valid and enforceable in accordance with its terms. Each
member of the Seller Group party to an Assigned Contract has complied with and
is in compliance with, and to Seller’s Knowledge, all other parties thereto have
complied with and are in compliance with, the provisions of each Assigned
Contract.

     

    (c)           No
member of the Seller Group is, and to Seller’s Knowledge, no other party thereto
is, in default in the performance, observance or fulfillment of any obligation,
covenant, condition or other term contained in any Assigned Contract, and no
member of the Seller Group has given or received notice to or from any Person
relating to any such alleged or potential default that has not been cured. No
event has occurred which, with or without the giving of notice or lapse of time,
or both, may conflict with or result in a violation or breach of, or give any
Person the right to exercise any remedy under or accelerate the maturity or
performance of, or cancel, terminate or modify, any Assigned
Contract.

     

    (d)           The
Seller Group has delivered accurate and complete copies of each Assigned
Contract to Buyer.

     

    4.11       Litigation.

     

    (a)           There
is no action, suit or proceeding, claim, arbitration, litigation or
investigation (each, an “Action”), (i) pending or, to
Seller’s Knowledge, threatened against or affecting any member of the Seller
Group relating directly or indirectly to any of the Purchased Assets, or (ii)
that challenges or seeks to prevent, enjoin or otherwise delay the transactions
contemplated by this Agreement or the Ancillary Agreements. No event has
occurred or circumstances exist that may give rise or serve as a basis for any
such Action.

     

    (b)           There
is no unsatisfied judgment, penalty or award against or affecting any member of
the Seller Group or any of their respective assets, properties or
rights.

     

    4.12       Environmental.

     

    (a)          As
used in this Agreement, the following words and terms have the following
definitions:

     

    (i) The
term “Environment” means
all indoor or outdoor air, surface water, groundwater, surface or subsurface
land, including all fish, wildlife, biota and all other natural
resources.

     

    (ii) The
term “Environmental
Action” means any claim, proceeding or other Action brought or threatened
under any Environmental Law or the assertion of any claim with respect to
Pre-Closing Environmental Liabilities.

     

    (iii) The
term “Environmental Cleanup
Site” means any location which is listed on the National Priorities List,
the Comprehensive Environmental Response, Compensation and Liability Information
System, or on any similar state or foreign list of sites requiring investigation
or cleanup, or which is the subject of any pending or threatened Action related
to or arising from any alleged violation of any Environmental Law, or at which
there has been a threatened or actual Release of a Hazardous
Substance.

    
      
         

      

      
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    (iv) The
term “Environmental
Laws” means any and all applicable Laws and Authorizations issued,
promulgated or entered into by any Governmental Entity relating to the
Environment, worker health and safety, preservation or reclamation of natural
resources, or to the management, handling, use, generation, treatment, storage,
transportation, disposal, manufacture, distribution, formulation, packaging,
labeling, Release or threatened Release of or exposure to Hazardous Substances,
whether now existing or subsequently amended or enacted, including but not
limited to: the Comprehensive Environmental Response, Compensation, and
Liability Act, 42 U.S.C. Section 9601 et seq. (“CERCLA”); the Federal Water
Pollution Control Act, 33 U.S.C. Section 1251 et seq.; the Clean Air Act, 42
U.S.C. Section 7401 et seq.; the Toxic Substances Control Act, 15 U.S.C. Section
2601 et seq.; the Occupational Safety and Health Act, 29 U.S.C. Section 651 et
seq.; the Emergency Planning and Community Right-to-Know Act of 1986, 42 U.S.C.
Section 11001 et seq.; the Safe Drinking Water Act, 42 U.S.C. Section 300(f) et
seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801 et
seq.; the Federal Insecticide, Fungicide and Rodenticide Act 7 U.S.C. Section
136 et seq.; the Resource Conservation and Recovery Act of 1976 (“RCRA”), 42 U.S.C. Section 6901
et seq.; the Toxic Substances Control Act, 15 U.S.C. Section 2601 et seq.; the
Oil Pollution Act of 1990, 33 U.S.C. Section 2701 et seq.; and any similar or
implementing state or local Law, and any non-U.S. Laws and regulations of
similar import, and all amendments or regulations promulgated thereunder; and
any common law doctrine, including but not limited to, negligence, nuisance,
trespass, personal injury, or property damage related to or arising out of the
presence, Release, or exposure to Hazardous Substances.

     

    (v) The
term “Environmental
Permit” means any Authorization under Environmental Law and includes any
and all Orders issued or entered into by a Governmental Entity under
Environmental Law.

     

    (vi) The
term “Hazardous
Substances” means all explosive or regulated radioactive materials or
substances, hazardous or toxic materials, wastes or chemicals, petroleum and
petroleum products (including crude oil or any fraction thereof), asbestos or
asbestos containing materials, and all other materials, chemicals or substances
which are regulated by, form the basis of liability or are defined as hazardous,
extremely hazardous, toxic or words of similar import, under any Environmental
Law, including materials listed in 49 C.F.R. Section 172.101 and materials
defined as hazardous pursuant to Section 101(14) of CERCLA.

     

    (vii) The
term “Release” means any
spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, dumping, or disposing of Hazardous Substances into the
Environment.

     

    (b)          There
are no Environmental Permits required in connection with the Option
Agreements or the
Property.

     

    (c)          There
are no past, pending or, to Seller’s Knowledge, threatened Environmental Actions
against or affecting the Property or any member of the Seller Group in
connection with the Option Agreements or the Property, and no member of the
Seller Group is aware of any facts or circumstances which could be expected to
form the basis for any such Environmental Action.

     

    (d)          Neither
Geoxplor nor any member of the Seller Group has entered into or agreed to any
Order, and no member of the Seller Group is subject to any Order, relating to
compliance with any Environmental Law or to investigation or cleanup of a
Hazardous Substance under any Environmental Law, in each case in connection with
the Option Agreements or the
Property.

     

    (e)          No
Lien has been attached to, or asserted against, any Property pursuant to any
Environmental Law, and, to Seller’s Knowledge, no such Lien has been threatened.
To Seller’s Knowledge, there are no facts, circumstances or other conditions
that could be expected to give rise to any Liens on or affecting the Property
under Environmental Law.

    
      
         

      

      
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    (f)           There
has been no treatment, storage, disposal or Release of any Hazardous Substance
at, from, into, on or under any Property. No Hazardous Substances are present
in, on, about or migrating to or from any Property that could be expected to
give rise to an Environmental Action against any member of the Seller
Group.

     

    (g)          No
member of the Seller Group has received a CERCLA 104(e) information request nor
has any member of the Seller Group been named a potentially responsible party
for any National Priorities List site under CERCLA or any other site under
analogous state Law, in each case in connection with the Business. No member of
the Seller Group has received an analogous notice or request from any non-U.S.
Governmental Entity.

     

    (h)          There
are no aboveground tanks or underground storage tanks on, under or about the
Property. Any aboveground or underground tanks previously situated on the
Property have been removed in accordance with all Environmental Laws and no
residual contamination, if any, remains at such sites in excess of applicable
standards.

     

    (i)           There
are no polychlorinated biphenyls (“PCBs”) leaking from any
article, container or equipment on, under or about the Property and there are no
such articles, containers or equipment containing PCBs in, at, on, under or
within the Property.

     

    (j)           There
is no asbestos containing material or lead based paint containing materials in
at, on, under or within the Property.

     

    (k)          No
member of the Seller Group has transported or arranged for the treatment,
storage, handling, disposal, or transportation of any Hazardous Material to any
offsite location which is an Environmental Cleanup Site.

     

    (l)           None
of the Property is an Environmental Cleanup Site.

     

    (m)         The
Seller Group has provided, or has caused Geoxplor to provide, to Buyer true and
complete copies of, or access to, all written environmental assessments,
materials, reports, data, analyses and compliance audits that have been prepared
by or on behalf of Geoxplor or any member of the Seller Group with respect to
the Property.

     

    4.13       Solvency.

     

    (a)           No
member of the Seller Group is insolvent or will be rendered insolvent by any of
the transactions contemplated by this Agreement and the Ancillary Agreements.
“Insolvent” means, with respect to any Person, that the sum of the debts and
other probable Liabilities of such Person exceeds the present fair saleable
value of such Person’s assets.

     

    (b)           Immediately
after giving effect to the consummation of the transactions contemplated by this
Agreement and the Ancillary Agreements: (i) each member of the Seller Group will
be able to pay its Liabilities as they become due in the usual course of its
business, (ii) no member of the Seller Group will have unreasonably small
capital with which to conduct its present or proposed business, (iii) each
member of the Seller Group will have assets (calculated at fair market value)
that exceed its Liabilities, and (iv) taking into account all pending and
threatened litigation, final judgments against each member of the Seller Group
in actions for money damages are not reasonably anticipated to be rendered at a
time when, or in amounts such that, such member of the Seller Group will be
unable to satisfy any such judgments promptly in accordance with their terms
(taking into account the maximum probable amount of such judgments in any such
actions and the earliest reasonable time at which such judgments might be
rendered) as well as all other obligations of such member of the Seller Group.
The cash available to each member of the Seller Group, after taking into account
all other anticipated uses of the cash, will be sufficient to pay all such
Liabilities and judgments promptly in accordance with their
terms.

    
      
         

      

      
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    4.14       Brokers or Finders.
Each member of the Seller Group represents, as to itself and its Affiliates,
that no agent, broker, investment banker or other firm or Person is or will be
entitled to any broker’s or finder’s fee or any other commission or similar fee
in connection with any of the transactions contemplated by this Agreement and
the Ancillary Agreements.

     

    4.15       Completeness of
Disclosure. No representation or warranty by any member of the Seller
Group in this Agreement, and no statement made by the Seller Group in the Seller
Disclosure Schedule, the Ancillary Agreements or any certificate or other
document furnished or to be furnished to Buyer pursuant hereto, or in connection
with the negotiation, execution or performance of this Agreement and the
Ancillary Agreements contains or will at the Closing contain any untrue
statement of a material fact or omits or will omit to state a material fact
required to be stated herein or therein or necessary to make any statement
herein or therein not misleading. Except as specifically set forth in this
Agreement or the Seller Disclosure Schedule, there are no facts or circumstances
of which any member of the Seller Group is aware that have had or could be
expected to have, individually or in the aggregate, a material adverse effect on
the Purchased Assets or the condition (financial or otherwise), operations,
prospects or results of operations of any member of the Seller
Group.

     

    4.16       Representations Relating to
Seller’s Acquisition of the Purchase Price Shares.

     

    (a)           The
Seller Group is acquiring the Purchase Price Shares for investment for its own
account and not with the view to, or for resale in connection with, any
distribution thereof.  The Seller Group understands and acknowledges
that the Purchase Price Shares have not been registered under the Securities Act
or any state or foreign securities laws, by reason of a specific exemption from
the registration provisions of the Securities Act and applicable state and
foreign securities laws, which depends upon, among other things, the bona fide
nature of the investment intent as expressed herein.  Each member of
the Seller Group further represents that it does not have any contract,
undertaking, agreement or arrangement with any Person to sell, transfer or grant
participation to any third person with respect to any of the Purchase Price
Shares.

     

    (b)           The
Seller Group understands that an active public market for Buyer Common Stock may
not now exist and that there may never be an active public market for the
Purchase Price Shares acquired under this Agreement.

     

    (c)           Each
member of the Seller Group either (i) is an “accredited investor” as defined in
Rule 501 of Regulation D as promulgated by the Securities and Exchange
Commission under the Securities Act or (ii) is not a “U.S. Person” as defined in
Regulation S as promulgated by the Securities and Exchange Commission under the
Securities Act, and, in each case, shall submit to Buyer such further assurances
of such status as may be reasonably requested by Buyer.

     

    (d)           Each
member of the Seller Group, if a non-U.S. Person, agrees that it is acquiring
the Purchase Price Shares in an offshore transaction pursuant to Regulation S
and hereby represents to Buyer as follows:

    
      
         

      

      
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    (i)           Such
member is outside the United States when receiving and executing this
Agreement;

     

    (ii)          Such
member has not acquired the Purchase Price Shares as a result of, and will not
itself engage in, any “directed selling efforts” (as defined in Regulation S) in
the United States in respect of the Purchase Price Shares which would include
any activities undertaken for the purpose of, or that could reasonably be
expected to have the effect of, conditioning the market in the United States for
the resale of the Purchase Price Shares; provided, however, that such member may
sell or otherwise dispose of the Purchase Price Shares pursuant to registration
of the Purchase Price Shares under the Securities Act and any applicable state
and provincial securities laws or under an exemption from such registration
requirements and as otherwise provided herein;

     

    (iii)         Such
member understands and agrees that offers and sales of any of the Purchase Price
Shares prior to the expiration of a period of one year after the Closing Date
(the “Distribution Compliance Period”), shall only be made in compliance with
the safe harbor provisions set forth in Regulation S, pursuant to the
registration provisions of the Securities Act or an exemption therefrom, and
that all offers and sales after the Distribution Compliance Period shall be made
only in compliance with the registration provisions of the Securities Act or an
exemption therefrom, and in each case only in accordance with all applicable
securities laws;

     

    (iv)         Such
member understands and agrees not to engage in any hedging transactions
involving the Purchase Price Shares prior to the end of the Distribution
Compliance Period unless such transactions are in compliance with the Securities
Act; and

     

    (v)          Such
member hereby represents that it has satisfied itself as to the full observance
of the laws of its jurisdiction in connection with any invitation to subscribe
for the Purchase Price Shares or any use of this Agreement, including: (a) any
applicable legal requirements incumbent upon such member within its jurisdiction
for the purchase of the Purchase Price Shares; (b) any foreign exchange
restrictions applicable to such purchase; (c) any governmental or other consents
that such member may need to obtain; and (d) the income tax and other tax
consequences, if any, that may be relevant to the purchase, holding, redemption,
sale or transfer of the Purchase Price Shares. Such member’s subscription and
payment for, and its continued beneficial ownership of the Purchase Price
Shares, will not violate any applicable securities or other laws of such
member’s jurisdiction.

     

    (e)           Each
member of the Seller Group represents that neither it nor, to its knowledge, any
Person or entity controlling, controlled by or under common control with it, nor
any Person having a beneficial interest in it, nor any Person on whose behalf
Seller is acting: (i) is a Person listed in the Annex to Executive Order No.
13224 (2001) issued by the President of the United States (Executive Order
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten
to Commit, or Support Terrorism); (ii) is named on the List of Specially
Designated Nationals and Blocked Persons maintained by the U.S. Office of
Foreign Assets Control; (iii) is a non-U.S. shell bank or is providing banking
services indirectly to a non-U.S. shell bank; (iv) is a senior non-U.S.
political figure or an immediate family member or close associate of such
figure; or (v) is otherwise prohibited from investing in Buyer pursuant to
applicable U.S. anti-money laundering, anti-terrorist and asset control laws,
regulations, rules or orders (categories (i) through (v), each a “Prohibited
Seller”). Each member of the Seller Group agrees to provide Buyer, promptly upon
request, all information that is reasonably necessary or appropriate to comply
with applicable U.S. anti-money laundering, anti-terrorist and asset control
laws, regulations, rules and orders. Each member of the Seller Group consents to
the disclosure to U.S. regulators and law enforcement authorities by Buyer and
its affiliates and agents of such information about such member as is reasonably
necessary or appropriate to comply with applicable U.S. anti-money-laundering,
anti-terrorist and asset control laws, regulations, rules and orders. Each
member of the Seller Group acknowledges that if, following its investment in
Buyer, Buyer reasonably believes that such member is a Prohibited Seller or is
otherwise engaged in suspicious activity or refuses to promptly provide
information that Buyer requests, Buyer has the right or may be obligated to
prohibit additional investments, segregate the assets constituting the
investment in accordance with applicable regulations or immediately require such
member to transfer the shares of Common Stock.  Each member of the
Seller Group further acknowledges that such member will have no claim against
Buyer or any of its affiliates or agents for any form of damages as a result of
any of the foregoing actions.

    
      
         

      

      
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    (f)           Each
member of the Seller Group or its duly authorized representative realizes that
because of the inherently speculative nature of business activities and
investments of the kind contemplated by Buyer, Buyer’s financial position and
results of operations may be expected to fluctuate from period to period and
will, generally, involve a high degree of financial and market risk that can
result in substantial or, at times, even total loss of the value of the Purchase
Price Shares.

     

    (g)           Each
member of the Seller Group acknowledges and agrees that Buyer is a “shell
company” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”).  Pursuant to Rule 144(i) under the
Securities Act, securities issued by a current or former shell company (such as
the Purchase Price Shares) that otherwise meet the holding period and other
requirements of Rule 144 nevertheless cannot be sold in reliance on Rule 144
until one year after the date on which Buyer files current “Form 10 information”
(as defined in Rule 144(i)) with the SEC reflecting that it ceased being a shell
company, and provided that at the time of a proposed sale pursuant to Rule 144,
the issuer is subject to the reporting requirements of section 13 or 15(d) of
the Exchange Act and has filed all reports and other materials required to be
filed by section 13 or 15(d) of the Exchange Act, as applicable, during the
preceding 12 months (or for such shorter period that the issuer was required to
file such reports and materials), other than Form 8-K reports.  As a
result, the restrictive legends on certificates for the Purchase Price Shares
set forth below cannot be removed except in connection with an actual sale
meeting the foregoing requirements.

     

    ARTICLE
V

    REPRESENTATIONS
AND WARRANTIES OF BUYER

     

    Buyer
represents and warrants to each member of Seller Group that each statement
contained in this Article V is true and correct as of the date hereof, except as
set forth in the disclosure schedule dated and delivered as of the date hereof
by Buyer to Next (the “Buyer
Disclosure Schedule”), which is attached to this Agreement and is
designated therein as being the Buyer Disclosure Schedule. The Buyer Disclosure
Schedule shall be arranged in paragraphs corresponding to each representation
and warranty set forth in this Article V. Each exception to a representation and
warranty set forth in the Buyer Disclosure Schedule shall qualify the specific
representation and warranty which is referenced in the applicable paragraph of
the Buyer Disclosure Schedule, and no other representation or
warranty.

     

    5.1         Organization and Good
Standing. Buyer is a corporation duly organized, validly existing and in
good standing under the Laws of the jurisdiction of its incorporation and has
the requisite corporate power to own, lease and operate its properties and to
carry on its business as now being conducted.

    
      
         

      

      
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    5.2         Authority and
Enforceability. Buyer has the requisite corporate power and
authority to enter into this Agreement and the Ancillary Agreements to which it
is a party and to consummate the transactions contemplated hereby and thereby.
The execution and delivery of this Agreement and the Ancillary Agreements to
which Buyer is a party and the consummation of the transactions contemplated
hereby and thereby have been duly authorized by all necessary corporate action
on the part of Buyer. This Agreement has been, and the Ancillary Agreements to
which Buyer is a party will be, duly executed and delivered by Buyer and,
assuming due authorization, execution and delivery by each member of the Seller
Group, constitutes the valid and binding obligations of Buyer, enforceable
against it in accordance with their respective terms, except as such
enforceability may be limited by (a) bankruptcy, insolvency, reorganization,
moratorium or other similar Laws affecting or relating to creditors’ rights
generally, and (b) the availability of injunctive relief and other equitable
remedies.

     

    5.3         No Conflicts;
Consents.

     

    (a)           The
execution and delivery of this Agreement by Buyer do not, and the execution and
delivery of the Ancillary Agreements to which Buyer is a party and the
consummation of the transactions contemplated hereby and thereby will not, (i)
violate the provisions of any of the Charter Documents of Buyer, (ii) violate
any Contract to which Buyer is a party, (iii) to the knowledge of Buyer, violate
any Law of any Governmental Entity applicable to Buyer on the date hereof, or
(iv) to the knowledge of Buyer, result in the creation of any Liens upon any of
the assets owned or used by Buyer, except in each such case where such violation
or Lien would not reasonably be expected materially to impair or delay the
ability of Buyer to perform its obligations under this Agreement or the
Ancillary Agreements.

     

    (b)           No
Authorization or Order of, registration, declaration or filing with, or notice
to any Governmental Entity is required by Buyer in connection with the execution
and delivery of this Agreement and the Ancillary Agreements to which it is a
party and the consummation of the transactions contemplated hereby and
thereby.

     

    5.4         Purchase Price
Shares. The Purchase Price Shares are duly authorized, and upon transfer
of the Purchase Price Shares to the Escrow Agent in accordance with the terms of
ARTICLE II, will be validly issued, fully paid and nonassessable.  The
Purchase Price Shares will be issued in compliance with applicable Laws. The
Purchase Price Shares will not be issued in violation of any Contract to which
Buyer is a party or is subject or in violation of any preemptive or similar
rights of any Person.

     

    5.5         Litigation. There is
no Action pending or, to the knowledge of Buyer, threatened against, Buyer which
(a) challenges or seeks to enjoin, alter or materially delay the consummation of
the transactions contemplated by this Agreement, or (b) would reasonably be
expected to have a material adverse effect on Buyer.

     

    5.6         Brokers or Finders.
Buyer represents, as to itself and its Affiliates, that no agent, broker,
investment banker or other firm or Person is or will be entitled to any broker’s
or finder’s fee or any other commission or similar fee in connection with any of
the transactions contemplated by this Agreement and the Ancillary
Agreements.

     

    ARTICLE
VI

    COVENANTS
OF SELLER GROUP

     

    6.1         Conduct of Business.
During the period from the date of this Agreement and continuing until the
earlier of the termination of this Agreement or the Closing Date, except with
the prior written consent of Buyer, each member of the Seller Group shall, and
shall cause each other member of the Seller Group to:

     

    (a)           (i)
maintain its corporate existence, (ii) pay or perform its Liabilities when due,
and (iii) carry on its business in the usual, regular and ordinary course in a
manner consistent with past practice and in accordance with the provisions of
this Agreement and in compliance with all Laws and Assigned
Contracts;

    
      
         

      

      
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     (b)         maintain
the assets, properties and rights included in the Purchased Assets in the same
state of repair, order and conditions as they are on the date
hereof;

     

    (c)           maintain
the Books and Records in accordance with past practice, and use its reasonable
best efforts to maintain in full force and effect all Policies;

     

    (e)           use
its reasonable best efforts to (i) conduct its business in such a manner that on
the Closing Date the representations and warranties of the Seller Group
contained in this Agreement shall be true and correct, as though such
representations and warranties were made on and as of such date, and (ii) cause
all of the conditions to the obligations of Buyer under this Agreement to be
satisfied as soon as practicable following the date hereof.

     

    6.2         Negative Covenants.
Except as expressly provided in this Agreement, neither member of the Seller
Group shall do any of the following without the prior written consent of
Buyer:

     

    (a)           adopt
or propose any amendment to the Charter Documents of any member of the Seller
Group that could be expected to delay the consummation of the transactions
contemplated by this Agreement;

     

    (b)          sell,
lease, transfer or assign any Purchased Assets;

     

    (c)           assume,
incur or guarantee any Indebtedness or modify the terms of any existing
Indebtedness;

     

    (d)          cancel
any debts or waive any claims or rights of substantial value;

     

    (e)           mortgage,
pledge or subject to Liens any assets, properties or rights Related to the
Purchased Assets;

     

    (f)           amend,
modify, cancel or waive any rights under any Contract which is an Assigned
Contract;

     

    (g)           take
any action or engage in any transaction that is material to the Purchased
Assets;

     

    (l)           
make any filings or registrations with any Governmental Entity relating in any
way to the Purchased Assets;

     

    (m)         prior
to the termination of the Escrow Agreement, be party to any merger, acquisition,
consolidation, recapitalization, liquidation, dissolution or similar transaction
in which such member of the Seller Group does not survive;

     

    (n)          make
any changes in its accounting methods, principles or practices;

     

    (o)          make
any Tax election, change its method of Tax accounting or settle any claim
relating to Taxes;

     

    (p)          take
any action or omit to do any act which action or omission will cause it to
breach any obligation contained in this Agreement or cause any representation or
warranty of the Seller Group not to be true and correct as of the Closing Date;
or

     

    (q)          agree,
whether in writing or otherwise, to do any of the foregoing.

     

    
      
         

      

      
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    6.3        Access to Information;
Investigation. Each member of the Seller Group shall, and shall cause
each other member of the Seller Group to, afford to Buyer’s officers, directors,
employees, accountants, counsel, consultants, advisors and agents (“Representatives”) free and
full access to and the right to inspect, during normal business hours, all of
the Property, properties, assets, records, Contracts and other documents related
to the Purchased Assets, and shall permit them to consult with the officers,
employees, accountants, counsel and agents of the Seller Group for the purpose
of making such investigation of the Purchased Assets as Buyer shall desire to
make. The Seller Group shall furnish to Buyer all such documents and copies of
documents and records and information with respect to the Purchased Assets and
copies of any working papers relating thereto as Buyer may request. Without
limiting the foregoing, each member of the Seller Group shall permit, and will
cause each other member of the Seller Group to permit, Buyer and Buyer’s
Representatives to conduct environmental due diligence of the Property,
including the collecting and analysis of samples of indoor or outdoor air,
surface water, groundwater or surface or subsurface land on, at, in, under or
from the Property.

     

    6.4        Confidentiality. From
and after the Closing Date, each member of the Seller Group will, and will cause
its Affiliates to, hold, and will use its reasonable best efforts to cause its
and their respective Representatives to hold, in confidence any and all
information, whether written or oral, concerning this Agreement and all
Ancillary Agreements, the Purchased Assets, except to the extent that such
member can show that such information (a) is in the public domain through no
fault of any member of the Seller Group or any of its Affiliates or their
respective Representatives or (b) is lawfully acquired by the Seller Group or
any of its Affiliates after the Closing Date from sources that are not
prohibited from disclosing such information by a legal, contractual or fiduciary
obligation. If any member of the Seller Group or any of its Affiliates or
Representatives is compelled to disclose any such information by judicial or
administrative process or by other requirements of Law, such member shall
promptly notify Buyer in writing and shall disclose only that portion of such
information that such member is advised by its counsel in writing is legally
required to be disclosed; provided that each
member of the Seller Group shall exercise its reasonable best efforts to obtain
an appropriate protective order or other reasonable assurance that confidential
treatment will be accorded such information. The Seller Group shall enforce for
the benefit of Buyer all confidentiality, assignment of inventions and similar
agreements between any member of the Seller Group and any other party relating
to the Purchased Assets that are not Assigned Contracts.

     

    6.5        Release of Liens.
Prior to the Closing Date, the Seller Group shall cause to be released all Liens
in and upon any of the Purchased Assets (all of such Liens are set forth in the
Seller Disclosure Schedule).

     

    6.6        Consents. Each member
of the Seller Group shall, and shall cause each other member of the Seller
Group to, obtain all Consents that are required under the Assigned Contracts in
connection with the consummation of the transactions contemplated by this
Agreement so as to preserve all rights of, and benefits to, Buyer thereunder;
provided that no Assigned
Contract shall be amended and no right thereunder shall be waived to obtain any
such Consent. All of such Consents are set forth in the Section 4.3(a) of the
Seller Disclosure Schedule.

     

    6.7        Notification of Certain
Matters. The Seller Group shall give prompt notice to Buyer of (a) any
fact, event or circumstance known to it that individually or taken together with
all other facts, events and circumstances known to it, has had or could
have, individually or in
the aggregate, a material adverse effect on the Purchased Assets or the
condition (financial or otherwise), operations, prospects or results of
operations of any member of Seller Group, or would cause or constitute a breach
of any of its representations, warranties, covenants or agreements contained
herein, (b) the failure of any condition precedent to Buyer’s obligations
hereunder, (c) any notice or other communication from any third party alleging
that the consent of such third party is or may be required in connection with
the consummation of the transactions contemplated by this Agreement, (d) any
notice or other communication from any Governmental Entity in connection with
the consummation of the transactions contemplated by this Agreement, or (e) the
commencement of any Action that, if pending on the date of this Agreement, would
have been required to have been disclosed pursuant to Section 4.11; provided, however, (i) the
delivery of any notice pursuant to this Section 6.7 shall not limit or otherwise
affect any remedies available to Buyer, and (ii) disclosure by any member of the
Seller Group shall not be deemed to amend or supplement the Seller Disclosure
Schedule or prevent or cure any misrepresentation, breach of warranty or breach
of covenant.

    
      
         

      

      
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    6.8        Restrictive
Covenants.

     

    (a)          The
Seller Group covenants that, commencing on the Closing Date and ending on the
second anniversary of the Closing Date (the “Noncompetition Period”), no member of the
Seller Group shall, and it shall cause its Affiliates not to, directly or indirectly,
in any capacity, engage in or have any direct or indirect ownership interest in,
or permit such member’s or any such Affiliate’s name to be used in connection
with, any business anywhere in the United States of America which is engaged,
either directly or indirectly, in the Business (the “Restricted Business”). It is
recognized that the Restricted Business is expected to be conducted throughout
the United States of America and that more narrow geographical limitations of
any nature on this noncompetition covenant (and the nonsolicitation covenant set
forth in Section 6.8(b)) are therefore not appropriate.

     

    (b)          The
Seller Group covenants that during the Noncompetition Period, no member of the
Seller Group shall, and it shall cause its Affiliates not to, solicit the
employment or engagement of services of any person who is or was employed as an
employee, consultant or contractor in Buyer during the Noncompetition Period on
a full or part-time basis.

     

    (c)          The
Seller Group acknowledges that the restrictions contained in this Section 6.8
are reasonable and necessary to protect the legitimate interests of Buyer and
constitute a material inducement to Buyer to enter into this Agreement and
consummate the transactions contemplated by this Agreement. The Seller Group
acknowledges that any violation of this Section 6.8 will result in irreparable
injury to Buyer and agrees that Buyer shall be entitled to preliminary and
permanent injunctive relief, without the necessity of proving actual damages, as
well as an equitable accounting of all earnings, profits and other benefits
arising from any violation of this Section 6.8, which rights shall be cumulative
and in addition to any other rights or remedies to which Buyer may be entitled.
Without limiting the generality of the foregoing, the Noncompetition Period
shall be extended for an additional period equal to any period during which any
member of the Seller Group or any Affiliate is in breach of its obligations
under this Section 6.8.

     

    (d)          In
the event that any covenant contained in this Section 6.8 should ever be
adjudicated to exceed the time, geographic, product or service or other
limitations permitted by applicable Law in any jurisdiction, then any court is
expressly empowered to reform such covenant, and such covenant shall be deemed
reformed, in such jurisdiction to the maximum time, geographic, product or
service or other limitations permitted by applicable Law. The covenants
contained in this Section 6.8 and each provision thereof are severable and
distinct covenants and provisions. The invalidity or unenforceability of any
such covenant or provision as written shall not invalidate or render
unenforceable the remaining covenants or provisions hereof, and any such
invalidity or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such covenant or provision in any other
jurisdiction.

     

    6.9        Insurance. The Seller
Group shall cause each Policy maintained by any member of the Seller Group
covering any Purchased Asset or Assumed Liability to be amended prior to Closing
to name Buyer as an additional insured. Effective upon the Closing, the Seller
Group shall appoint Buyer as its true and lawful attorney-in-fact, in the name
of the Seller Group and any other relevant member of the Seller Group, but on
behalf of Buyer, to pursue and enforce any and all rights of the Seller Group or
any other member of the Seller Group under the Policies with respect to any
occurrence, claim or loss with respect to any Purchased Asset or Assumed
Liability to the extent attributable to events that occurred prior to the
Closing. The Seller Group agrees that the foregoing appointment shall be coupled
with an interest and shall be irrevocable. Notwithstanding the foregoing, no
such insurance shall affect any indemnification obligation provided in this
Agreement.

     

    
      
         

      

      
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    ARTICLE
VII

    COVENANTS
OF BUYER AND SELLER

     

    
      7.1        Regulatory
Approvals.

    

     

    (a)           Buyer
and the Seller Group shall each promptly apply for, and take all reasonably
necessary actions to obtain or make, as applicable, all Orders and
Authorizations of, and all filings with, any Governmental Entity or other Person
required to be obtained or made by it for the consummation of the transactions
contemplated by this Agreement. Each party shall cooperate with and promptly
furnish information to the other party necessary in connection with any
requirements imposed upon such other party in connection with the consummation
of the transactions contemplated by this Agreement.

     

    (b)          The
Seller Group shall assist Buyer in identifying the Authorizations required by
Buyer to hold, own, use and enjoy the Purchased Assets from and after the
Closing Date.

     

    7.2         Public Announcements.
Neither Buyer nor any member of the Seller Group shall, and each member of the
Seller Group will cause the other member of the Seller Group not to, issue any
press releases or otherwise make any public statements with respect to the
transactions contemplated by this Agreement; provided, however, that Buyer
or the Seller Group may, without such approval, make such press releases or
other public announcement as it believes are required pursuant to any listing
agreement with any national securities exchange or stock market or applicable
securities Laws, in which case the party required to make the release or
announcement shall allow the other party reasonable time to comment on such
release or announcement in advance of such issuance; provided, further, that each of
the parties may make internal announcements to their respective employees that
are consistent with the parties’ prior public disclosures regarding the
transactions contemplated by this Agreement.

     

    7.3        Taxes.

     

    (a)          The
Seller Group shall pay all federal, state and local sales, documentary and real
estate and other transfer Taxes, if any, due as a result of the purchase, sale
or transfer of the Purchased Assets in accordance herewith whether imposed by
Law on the Seller Group or Buyer.

     

    (b)          All
real property Taxes, personal property Taxes and similar ad valorem obligations
levied with respect to the Purchased Assets for a taxable period that includes
(but does not end on) the Closing Date shall be apportioned between the Seller
Group and Buyer as of the Closing Date based on the number of days of such
taxable period included in the period ending with and including the Closing Date
(with respect to any such taxable period, the “Pre-Closing Tax Period”), and
the number of days of such taxable period beginning after the Closing Date (with
respect to any such taxable period, the “Post-Closing Tax Period”). The Seller Group
shall be liable for the proportionate amount of such Taxes that is
attributable to the Pre-Closing Tax Period, and Buyer shall be liable for the
proportionate amount of such Taxes that is attributable to the Post-Closing
Period. If bills for such Taxes have not been issued as of the Closing Date,
and, if the amount of such Taxes for the period including the Closing Date is
not then known, the apportionment of such Taxes shall be made at Closing on the
basis of the prior period’s Taxes. After Closing, upon receipt of bills for the
period including the Closing Date, adjustments to the apportionment shall be
made by the parties, so that if either party paid more than its proper share at
the Closing, the other party shall promptly reimburse such party for the excess
amount paid by them.

     

    
      
         

      

      
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    (c)          Buyer
and the Seller Group agree to furnish or cause to be furnished to each other,
upon request, as promptly as practicable, such information and assistance
relating to the Purchased Assets and Assumed Liabilities (including access to
books and records) as is reasonably necessary for the filing of all Tax Returns,
the making of any election relating to Taxes, the preparation for any audit by
any Taxing Authority, and the prosecution or defense of any Action relating to
any Tax. Any expenses incurred in furnishing such information or assistance
shall be borne by the party requesting it.

     

    7.4        Bulk Sales Laws.
Buyer and the Seller Group hereby waive compliance by Buyer and the Seller Group
with the bulk sales Law and any other similar Laws in any applicable
jurisdiction in respect of the transactions contemplated by this Agreement and
the Ancillary Agreements; provided, however, that the
Seller Group shall pay and discharge when due all claims of creditors asserted
against Buyer or the Purchased Assets by reason of such noncompliance and shall
take promptly all necessary actions required to remove any Lien which may be
placed upon any of the Purchased Assets by reason of such
noncompliance.

     

    7.5        Discharge of Business
Obligations after Closing.

     

    (a)          From
and after the Closing, each member of the Seller Group shall, and shall cause
each other member of the Seller Group to, pay and discharge on a timely basis
all of the Excluded Liabilities.

     

    (b)          From
and after the Closing, if any member of the Seller Group or any of their
respective Affiliates receives or collects any funds relating to any Purchased
Asset, such member of the Seller Group or its Affiliate shall remit such funds
to Buyer within five Business Days after its receipt thereof. From and after the
Closing, if Buyer receives or collects any funds relating to any Excluded Asset,
Buyer shall remit any such funds to the relevant member of the Seller Group
within five Business Days after its receipt thereof.

     

    (c)          Effective
upon the Closing, each member of the Seller Group shall, and shall cause each
other member of the Seller Group to, appoint Buyer as its true and lawful
attorney-in-fact, in the name of the relevant member of the Seller Group, but on
behalf of Buyer to (i) receive and open all mail, packages and other
communications addressed to any member of the Seller Group related to the
Purchased Assets, and (ii) endorse without recourse the name of any member of
the Seller Group on any check or any other evidences of Indebtedness received by
Buyer on account of the Purchased Assets transferred to Buyer hereunder. Each
member of the Seller Group agrees that the foregoing appointment shall be
coupled with an interest and shall be irrevocable.

     

    7.6        Access to Books and
Records. Each of the Seller Group and Buyer shall preserve until the
tenth anniversary of the Closing Date all records possessed or to be possessed
by such party relating to any of the Purchased Assets or Assumed Liabilities
prior to the Closing. After the Closing Date, where there is a legitimate
business purpose, such party shall provide the other party with access, upon
prior reasonable written request specifying the need therefor, during regular
business hours, to (i) the officers and employees of such party and (ii) the
books of account and records of such party, but, in each case, only to the
extent relating to the Purchased Assets or Assumed Liabilities prior to the
Closing, and the other party and its representatives shall have the right to
make copies of such books and records at their sole cost; provided, however, that the
foregoing right of access shall not be exercisable in such a manner as to
interfere unreasonably with the normal operations and business of such party.
Such records may nevertheless be destroyed by a party if such party sends to the
other party written notice of its intent to destroy records, specifying with
particularity the contents of the records to be destroyed. Such records may then
be destroyed after the 30th day after such notice is given unless the other
party objects to the destruction in which case the party seeking to destroy the
records shall deliver such records to the objecting party at the objecting
party’s cost.

    
      
         

      

      
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    7.7        Further Assurances.
Buyer and each member of the Seller Group shall, and each member of the Seller
Group shall cause the other members of the Seller Group to, execute such
documents and other instruments and take such further actions as may be
reasonably required or desirable to carry out the provisions of this Agreement
and the Ancillary Agreements and to consummate the transactions contemplated
hereby and thereby. Upon the terms and subject to the conditions hereof, Buyer
and the Seller Group shall each use its respective reasonable best efforts to
(a) take or cause to be taken all actions and to do or cause to be done all
other things necessary, proper or advisable to consummate and make effective as
promptly as practicable the transactions contemplated by this Agreement and the
Ancillary Agreements and (b) obtain in a timely manner all Consents and
Authorizations and effect all necessary registrations and filings. From time to
time after the Closing, at Buyer’s request, each member of the Seller Group
shall execute, and each member of the Seller Group shall cause each other
relevant member of the Seller Group to, acknowledge and deliver to Buyer such
other instruments of conveyance and transfer and will take such other actions
and execute and deliver such other documents, certifications and further
assurances as Buyer may reasonably require in order to vest more effectively in
Buyer, or to put Buyer more fully in possession of, any of the Purchased
Assets.

     

    ARTICLE
VIII

    CONDITIONS
TO CLOSING

     

    8.1        Conditions to Obligations of
Buyer and Seller. The obligations of Buyer and the Seller Group to
consummate the transactions contemplated by this Agreement are subject to the
satisfaction on or prior to the Closing Date of the following
conditions:

     

    (a)          The
waiting period applicable to the consummation of the transactions contemplated
by this Agreement under the HSR Act and any applicable waiting periods under the
Other Antitrust Laws shall have expired or been terminated and all other
Authorizations and Orders of, declarations and filings with, and notices to any
Governmental Entity, required to permit the consummation of the transactions
contemplated by this Agreement shall have been obtained or made and shall be in
full force and effect.

     

    (b)          No
temporary restraining order, preliminary or permanent injunction or other Order
preventing the consummation of the transactions contemplated by this Agreement
shall be in effect. No Law shall have been enacted or shall be deemed applicable
to the transactions contemplated by this Agreement which makes the consummation
of such transactions illegal.

     

    8.2        Conditions to Obligation of
Buyer. The obligation of Buyer to consummate the
transactions contemplated by this Agreement is subject to the satisfaction (or
waiver by Buyer in its sole discretion) of the following further
conditions:

     

    (a)          The
representations and warranties of the Seller Group set forth in this Agreement
shall have been true and correct at and as of the date hereof and shall be true
and correct at and as of the Closing Date as if made at and as of the Closing
Date, except to the extent that such representations and warranties refer
specifically to an earlier date, in which case such representations and
warranties shall have been true and correct as of such earlier
date.

     

    (b)          The
Seller Group shall have performed or complied with all obligations and covenants
required by this Agreement to be performed or complied with by the Seller Group
at or prior to the Closing.

     

    
      
         

      

      
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    (c)          Buyer
shall have received a certificate dated the Closing Date signed on behalf of
each member of the Seller Group by the President of such member to the effect
that the conditions set forth in Sections 8.2(a) and 8.2(b) have been satisfied
(the “Seller Closing
Certificate”).

     

    (d)          There
shall have been no material adverse change in the Purchased Assets or the
condition (financial or otherwise), operations, prospects or results of
operations of any member of the Seller Group.

     

    (e)          No
Action shall be pending or threatened before any court or other Governmental
Entity or before any other Person wherein an unfavorable Order would (i) prevent
consummation of any of the transactions contemplated by this Agreement or the
Ancillary Agreements, (ii) affect adversely the right of Buyer to own the
Purchased Assets or (iii) restrain or prohibit Buyer’s ownership or operation
(or that of its Subsidiaries or Affiliates) of all or any material portion of
the Purchased Assets, or compel Buyer or any of its Subsidiaries or Affiliates
to dispose of or hold separate all or any material portion of Purchased Assets
or all or any material portion of the business and assets of Buyer and its
Subsidiaries. No such Order shall be in effect.

     

    (f)           No
Law shall have been enacted or shall be deemed applicable to the transactions
contemplated by this Agreement or the Ancillary Agreements which has any of the
effects set forth in clauses (i) through (iii) in Section 8.2(e).

     

    (g)          The
Seller Group shall have obtained the Consent of each Person whose Consent is
required under the Assigned Contracts and shall have provided evidence of each
such Consent in form and substance satisfactory to Buyer.

     

    (h)          Buyer
shall have received all Authorizations (including any Environmental Permits)
that are necessary for it to hold, own, use and enjoy the Purchased
Assets.

     

    (i)           The
Seller Group shall have delivered to Buyer all agreements and other documents
required to be delivered by the Seller Group to Buyer pursuant to Section 3.2 of
this Agreement.

     

    (j)           Buyer
shall have received a certificate of the Secretary of each member of the Seller
Group dated the Closing Date and certifying:

     

    (i) that
attached thereto are true and complete copies of all resolutions adopted by the
Board of Directors and the stockholders of such member of the Seller Group in
connection with the transactions contemplated by this Agreement and the
Ancillary Agreements, and that all such resolutions are in full force and effect
and are all the resolutions adopted in connection with the transactions
contemplated by this Agreement and the Ancillary Agreements; and

     

    (ii) to
the incumbency and specimen signature of each officer of such member of the
Seller Group executing this Agreement and/or the Ancillary Agreements, and a
certification by another officer of such member of the Seller Group as to the
incumbency and signature of the Secretary of such member of the Seller
Group.

     

    (k)          Buyer
shall have received evidence in form and substance satisfactory to Buyer that
all Liens with respect to the Purchased Assets have been released.

     

    (l)           Buyer
shall have received the written opinion of WeirFoulds LLP, dated the Closing
Date, in form and substance reasonably satisfactory to Buyer.

    
      
         

      

      
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    (m)         Buyer
shall have completed and shall be fully satisfied in its sole discretion with
the results of its review of, and its other due diligence investigations with
respect to, the Purchased Assets. Such review may include an analysis by Buyer
or its representatives of (i) the results of any environmental assessment of the
Property that Buyer shall deem appropriate and (ii) environmental and OSHA
practices and procedures of the Seller Group.

     

    8.3        Conditions to Obligation of
Seller. The obligation of the Seller Group to consummate the transactions
contemplated by this Agreement is subject to the satisfaction (or waiver by the
Seller Group in its sole discretion) of the following further
conditions:

     

    (a)          The
representations and warranties of Buyer set forth in this Agreement shall have
been true and correct at and as of the date hereof and shall be true and correct
at and as of the Closing Date as if made at and as of the Closing Date, except
to the extent that such representations and warranties refer specifically to an
earlier date, in which case such representations and warranties shall have been
true and correct as of such earlier date.

     

    (b)          Buyer
shall have performed or complied with all obligations and covenants required by
this Agreement to be performed or complied with by Buyer at or prior to the
Closing.

     

    (c)          The
Seller Group shall have received a certificate dated the Closing Date signed on
behalf of Buyer by the Chief Executive Officer of Buyer to the effect that the
conditions set forth in Section 8.3(a) and 8.3(b) have been satisfied (the
“Buyer Closing
Certificate”).

     

    (d)        
 No Action shall be pending or threatened before any court or other
Governmental Entity or other Person wherein an unfavorable Order would (i)
prevent consummation of any of the transactions contemplated by this Agreement
and the Ancillary Agreements or (ii) cause any of the transactions contemplated
by this Agreement and the Ancillary Agreements to be rescinded following
consummation. No such Order shall be in effect.

     

    (e)          Buyer
shall have delivered to the Seller Group all agreements and other documents
required to be delivered by Buyer to the Seller Group pursuant to Section 3.3 of
this Agreement.

     

    (f)          The
Seller Group shall have received a certificate of the Secretary of Buyer dated
the Closing Date and certifying: (A) that attached thereto are true and complete
copies of all resolutions adopted by the Board of Directors of Buyer in
connection with the transactions contemplated by this Agreement and the
Ancillary Agreements, and that all such resolutions are in full force and effect
and are all the resolutions adopted in connection with the transactions
contemplated by this Agreement and the Ancillary Agreements; and (B) to the
incumbency and specimen signature of each officer of Buyer executing this
Agreement and the Ancillary Agreements to which it is a party, and a
certification by another officer of Buyer as to the incumbency and signature of
the Secretary of Buyer.

     

    ARTICLE
IX

    TERMINATION

     

    
      9.1        Termination.

    

     

    (a)           This
Agreement may be terminated at any time prior to the Closing:

     

    
      	
               
      

            	
              (i)

            	
              by
      mutual written consent of Buyer and the Seller
  Group;

            

    

     

    
      	
               
      

            	
              (ii)

            	
              by
      Buyer or the Seller Group if:

            

    

        

    
      
         

      

      
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    (A)        the
Closing does not occur on or before March 15, 2010; provided that the
right to terminate this Agreement under this clause (ii)(A) shall not be
available to any party whose breach of a representation, warranty, covenant or
agreement under this Agreement has been the cause of or resulted in the failure
of the Closing to occur on or before such date; or

     

    (B)         a
Governmental Entity shall have issued an Order or taken any other action, in any
case having the effect of permanently restraining, enjoining or otherwise
prohibiting the transactions contemplated by this Agreement, which Order or
other action is final and non-appealable;

     

    
      	
               
      

            	
              (iii)

            	
              by
      Buyer if:

            

    

     

    (A)        any
condition to the obligations of Buyer hereunder becomes incapable of fulfillment
other than as a result of a breach by Buyer of any covenant or agreement
contained in this Agreement, and such condition is not waived by Buyer;
or

     

    (B)         there
has been a breach by any member of the Seller Group of any representation,
warranty, covenant or agreement contained in this Agreement or the Seller
Disclosure Schedule, or if any representation or warranty of any member of the
Seller Group shall have become untrue, in either case such that the conditions
set forth in Sections 8.2(a) or 8.2(b) would not be satisfied, and, in
either case, such breach is not curable, or, if curable, is not cured within
five days after written notice of such breach is given to the Seller Group by
Buyer.; or

     

    
      	
               
      

            	
              (iv)

            	
              by
      the Seller Group if:

            

    

     

    (A)        any
condition to the obligations of the Seller Group hereunder becomes incapable of
fulfillment other than as a result of a breach by any member of the Seller Group
of any covenant or agreement contained in this Agreement, and such condition is
not waived by the Seller Group; or

     

    (B)         there
has been a breach by Buyer of any representation, warranty, covenant or
agreement contained in this Agreement or the Buyer Disclosure Schedule, or if
any representation or warranty of Buyer shall have become untrue, in either case
such that the conditions set forth in Sections 8.3(a) or 8.3(b) would not be
satisfied, and, in
either case, such breach is not curable, or, if curable, is not cured within
five days after written notice of such breach is given to Buyer by the Seller
Group.

     

    (b)           The
party desiring to terminate this Agreement pursuant to clause (ii), (iii) or
(iv) shall give written notice of such termination to the other party
hereto.

     

    9.2        Effect of
Termination. In the event of termination of this Agreement as provided in
Section 9.1, this Agreement shall immediately become null and void and there
shall be no Liability or obligation on the part of the Seller Group or Buyer or
their respective officers, directors, stockholders or Affiliates, except as set
forth in Section 9.3; provided, however, the
provisions of Section 7.2 (Public Announcements) and Section 9.3 (Remedies) and
Article X of this Agreement shall remain in full force and effect and survive
any termination of this Agreement.

     

    
      
         

      

      
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    9.3        Remedies. Any party
terminating this Agreement pursuant to Section 9.1
shall have the right to recover damages sustained by such party as a result of
any breach by the other party of any representation, warranty, covenant or
agreement contained in this Agreement or fraud or willful misrepresentation;
provided, however, that the
party seeking relief is not in breach of any representation, warranty, covenant
or agreement contained in this Agreement under circumstances which would have
permitted the other party to terminate the Agreement under Section
9.1.

     

    ARTICLE
X

    INDEMNIFICATION

     

    
      10.1      Survival.

    

     

    (a)           Except
as set forth in Section 10.1(b), all representations and warranties contained in
this Agreement, the Ancillary Agreements, any Schedule, certificate or other
document delivered pursuant to this Agreement or the Ancillary Agreements, shall
survive the Closing for a period of three years.

     

    (b)           The
representations and warranties of the Seller Group contained in Sections 4.1
(Organization and Good Standing), 4.2 (Authority and Enforceability), 4.14
(Brokers or Finders), and the representations and warranties of Buyer contained
in Sections 5.1 (Organization and Good Standing), 5.2 (Authority and
Enforceability) and 5.6 (Brokers or Finders) shall survive the Closing
indefinitely. The representations and warranties of the Seller Group contained
in Sections 4.4 (Taxes) shall survive the Closing until 60 days after the
expiration of the applicable statute of limitations period (after giving effect
to any waivers and extensions thereof). The representations and warranties of
the Seller Group contained in Section 4.12 (Environmental) shall survive the
Closing for a period of five years following the Closing Date.

     

    (c)           The
covenants and agreements which by their terms do not contemplate performance
after the Closing shall survive the Closing for a period of three years. The
covenants and agreements which by their terms contemplate performance after the
Closing Date shall survive the Closing indefinitely.

     

    (d)           The
period for which a representation or warranty, covenant or agreement survives
the Closing is referred to herein as the “Applicable Survival Period.”
In the event notice of claim for indemnification under Section 10.2 or 10.3 is
given within the Applicable Survival Period, the representation or warranty,
covenant or agreement that is the subject of such indemnification claim (whether
or not formal legal action shall have been commenced based upon such claim)
shall survive with respect to such claim until such claim is finally resolved.
The Indemnitor shall indemnify the Indemnitee for all Losses (subject to the
limitations set forth herein, if applicable) that the Indemnitee may incur in
respect of such claim, regardless of when incurred.

     

    
      10.2      Indemnification by
Seller.

    

     

    (a)           Each
member of the Seller Group, jointly and severally, shall indemnify and defend
Buyer and its Affiliates and their respective stockholders, members, managers,
officers, directors, employees, agents, successors and assigns (the “Buyer Indemnitees”) against,
and shall hold them harmless from, any and all losses, damages, claims
(including third party claims), charges, interest, penalties, Taxes, diminution
in value, costs and expenses (including legal, consultant, accounting and other
professional fees, costs of sampling, testing, investigation, removal, treatment
and remediation of contamination and fees and costs incurred in enforcing rights
under this Section 10.2) (collectively, “Losses”) resulting from,
arising out of, or incurred by any Buyer Indemnitee in connection with, or
otherwise with respect to:

     

    
      
         

      

      
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    (i)           the
failure of any representation and warranty or other statement by any member of
the Seller Group contained in this Agreement, the Ancillary Agreements, the
Seller Disclosure Schedule or any certificate or other document furnished or to
be furnished to Buyer in connection with the transactions contemplated by this
Agreement and the Ancillary Agreements to be true and correct in all respects as
of the date of this Agreement and as of the Closing Date;

     

    (ii)         any
breach of any covenant or agreement of any member of the Seller Group contained
in this Agreement, the Ancillary Agreements, the Seller Disclosure Schedule or
any certificate or other document furnished or to be furnished to Buyer in
connection with the transactions contemplated by this Agreement and the
Ancillary Agreements;

     

    (iii)         any
Excluded Liability including any Pre-Closing Environmental Liability, regardless
of whether or not the Seller Disclosure Schedule discloses any such Excluded
Liability;

     

    (iv)        any
fees, expenses or other payments incurred or owed by any member of the Seller
Group to any agent, broker, investment banker or other firm or person retained
or employed by it in connection with the transactions contemplated by this
Agreement and the Ancillary Agreements;  and

     

    (v)           fraudulent
transfer Laws or the failure to comply with any bulk sales Laws and similar
Laws.

     

    provided that for
purposes of this Section 10.2, the representations and warranties herein, in the
Ancillary Agreements and in the Seller Closing Certificate shall be deemed to
have been made without any qualifications as to knowledge or materiality and,
accordingly, all references herein and therein to “knowledge,” “material,” “in
all material respects” and similar qualifications as to knowledge and
materiality shall be deemed to be deleted therefrom (except where any such
provision requires disclosure of lists of items of a material nature or above a
specified threshold). Any and all Losses hereunder shall bear interest from the
date incurred until paid at the rate of 10% per annum.

     

    (b)           The
Seller Group shall not be liable for any Loss or Losses pursuant to Section
10.2(a)(i) (“Buyer Warranty
Losses”) (i) unless and until the aggregate amount of all Buyer Warranty
Losses incurred by the Buyer Indemnitees exceeds $10,000, in which event the
Seller Group shall be liable for all Buyer Warranty Losses from the first
dollar, and (ii) to the extent that Buyer Warranty Losses exceed $1,000,000 in
the aggregate; provided, however, nothing
contained in this Section 10.2(b) shall be deemed to
limit or restrict in any manner any rights or remedies which Buyer has, or might
have, at Law, in equity or otherwise, based on fraud or a willful
misrepresentation or willful breach of warranty hereunder.

     

    
      10.3      Indemnification by
Buyer.

    

     

    (a)           Buyer
shall indemnify and defend the Seller Group and its Affiliates and their
respective stockholders, members, managers, officers, directors, employees,
agents, successors and assigns (the “Seller Indemnitees”) against,
and shall hold them harmless from, any and all Losses resulting from,
arising out of, or incurred by any Seller Indemnitee in connection with, or
otherwise with respect to:

     

    (i)           the
failure of any representation and warranty or other statement by Buyer contained
in this Agreement, the Ancillary Agreements, the Buyer Disclosure Schedule or
any certificate or other document furnished or to be furnished to the Seller
Group pursuant to this Agreement to be true and correct in all respects as of
the date of this Agreement and as of the Closing Date;

     

    
      
         

      

      
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    (ii)           any
breach of any covenant or agreement of Buyer contained in this Agreement, the
Ancillary Agreements, the Buyer Disclosure Schedule or any certificate or other
document furnished or to be furnished to the Seller Group in connection with the
transactions contemplated hereby and thereby; and

     

    (iii)           any
failure to perform when due the Assumed Liabilities.

     

    provided that for
purposes of this Section 10.3, the representations and warranties herein and in
the Buyer Closing Certificate shall be deemed to have been made without any
qualifications as to knowledge or materiality and, accordingly, all references
herein and therein to “knowledge,” “material,” “in all material respects” and
similar qualifications as to knowledge and materiality shall be deemed to be
deleted therefrom (except where any such provision requires disclosure of lists
of items of a material nature or above a specified threshold).

     

    (b) Buyer
shall not be liable for any Loss or Losses pursuant to 10.3(a)(i) (“Seller Warranty Losses”) (i)
unless and until the aggregate amount of all Seller Warranty Losses incurred by
the Seller Indemnitees exceeds $10,000, in which event Buyer shall be liable for
all Seller Warranty Losses from the first dollar, and (ii) to the extent that
Seller Warranty Losses exceed $1,000,000 in the aggregate; provided, however, nothing
contained in this Section 10.3(b) shall be deemed to
limit or restrict in any manner any rights or remedies which the Seller Group
has, or might have, at Law, in equity or otherwise, based on fraud or a willful
misrepresentation or willful breach of warranty hereunder.

     

    
      10.4      Indemnification Procedures
for Third Party Claims.

    

     

    (a)           In
the event that an Indemnitee receives notice of the assertion of any claim or
the commencement of any Action by a third party in respect of which indemnity
may be sought under the provisions of this Article X (“Third Party Claim”), the
Indemnitee shall promptly notify the Indemnitor in writing of such Third Party
Claim (“Notice of
Claim”). Failure or delay in notifying the Indemnitor will not relieve
the Indemnitor of any Liability it may have to the Indemnitee, except and only
to the extent that such failure or delay causes actual harm to the Indemnitor
with respect to such Third Party Claim. The Notice of Claim shall set forth the
amount, if known, or, if not known, an estimate of the foreseeable maximum
amount of claimed Losses (which estimate shall not be conclusive of the final
amount of such Losses) and a description of the basis for such Third Party
Claim.

     

    (b)           Subject
to the further provisions of this Section 10.4, the Indemnitor will have 10 days
(or less if the nature of the Third Party Claim requires) from the date on which
the Indemnitor received the Notice of Claim to notify the Indemnitee that the
Indemnitor will assume the defense or prosecution of such Third Party Claim and
any litigation resulting therefrom with counsel of its choice and at its sole
cost and expense (a “Third
Party Defense”). If the Indemnitor assumes the Third Party Defense in
accordance with the preceding sentence, the Indemnitor shall be conclusively
deemed to have acknowledged that the Third Party Claim is within the scope of
its indemnity obligation hereunder and shall hold the Indemnitee harmless from
and against the full amount of any Losses resulting therefrom (subject to the
terms and conditions of this Agreement). Any Indemnitee shall have the right to
employ separate counsel in any such Third Party Defense and to participate
therein, but the fees and expenses of such counsel shall not be at the expense
of the Indemnitor unless (A) the Indemnitor shall have failed, within the time
after having been notified by the Indemnitee of the existence of the Third Party
Claim as provided in the first sentence of this paragraph (b), to assume the
defense of such Third Party Claim, or (B) the employment of such counsel has
been specifically authorized in writing by the Indemnitor, which authorization
shall not be unreasonably withheld.

     

    
      
         

      

      
        35

        
          

        

      

      
         

      

    

    (c)           The
Indemnitor will not be entitled to assume the Third Party Defense
if:

     

    (i)           the
Third Party Claim seeks, in addition to or in lieu of monetary damages, any
injunctive or other equitable relief;

     

    (ii)          the
Third Party Claim relates to or arises in connection with any criminal
proceeding, action, indictment, allegation or investigation;

     

    (iii)         the
Third Party Claim relates to or arises in connection with any Environmental
Action;

     

    (iv)        under
applicable standards of professional conduct, a conflict on any significant
issue exists between the Indemnitee and the Indemnitor in respect of the Third
Party Claim;

     

    (v)         the
Indemnitee reasonably believes an adverse determination with respect to the
Third Party Claim would be detrimental to or injure the Indemnitee’s reputation
or future business prospects;

     

    (vi)        the
Indemnitor failed or is failing to vigorously prosecute or defend such Third
Party Claim;

     

    (vii)       the
Indemnitor fails to provide reasonable assurance to the Indemnitee of its
financial capacity to prosecute the Third Party Defense and provide
indemnification in accordance with the provisions of this Agreement;
or

     

    (viii)      the
Third Party Claim would give rise to Losses which are more than the amount
indemnifiable by the Indemnitor pursuant to this Article X.

     

    (d)           If
by reason of the Third Party Claim a Lien, attachment, garnishment or execution
is placed upon any of the property or assets of the Indemnitee, the Indemnitor,
if it desires to exercise its right to assume such Third Party Defense, must
furnish a satisfactory indemnity bond to obtain the prompt release of such Lien,
attachment, garnishment or execution.

     

    (e)           If
the Indemnitor assumes a Third Party Defense, it will take all steps necessary
in the defense, prosecution, or settlement of such claim or litigation and will
hold all Indemnitees harmless from and against all Losses caused by or arising
out of such Third Party Claim (subject to the last sentence of Section 10.4(b)).
The Indemnitor will not consent to the entry of any judgment or enter into any
settlement except with the written consent of the Indemnitee to which the
Indemnitor is obligated to furnish indemnification pursuant to this Agreement;
provided that
the consent of the Indemnitee shall not be required if all of the following
conditions are met: (i) the terms of the judgment or proposed settlement include
as an unconditional term thereof the giving to the Indemnitees by the third
party of a release of the Indemnitees from all Liability in respect of such
Third Party Claim, (ii) there is no finding or admission of (A) any violation of
Law by the Indemnitees (or any Affiliate thereof), (B) any violation of the
rights of any Person and (C) no effect on any other Action or claims of a
similar nature that may be made against the Indemnitees (or any Affiliate
thereof), and (iii) the sole form of relief is monetary damages which are paid
in full by the Indemnitor. The Indemnitor shall conduct the defense of the Third
Party Claim actively and diligently, and the Indemnitee will provide reasonable
cooperation in the defense of the Third Party Claim. So long as the Indemnitor
is reasonably conducting the Third Party Defense in good faith, the Indemnitee
will not consent to the entry of any judgment or enter into any settlement with
respect to the Third Party Claim without the prior written consent of the
Indemnitor (not to be unreasonably withheld or delayed). Notwithstanding the
foregoing, the Indemnitee shall have the right to pay or settle any such Third
Party Claim; provided
that, in such event, subject to the following sentence, it shall waive
any right to indemnity therefor by the Indemnitor for such claim unless the
Indemnitor shall have consented to such payment or settlement (such consent not
to be unreasonably withheld or delayed). If the Indemnitor is not reasonably
conducting the Third Party Defense in good faith, the Indemnitee shall have the
right to consent to the entry of any judgment or enter into any settlement with
respect to the Third Party Claim without the prior written consent of the
Indemnitor and the Indemnitor shall reimburse the Indemnitee promptly for all
Losses incurred in connection with such judgment or settlement.

     

    
      
         

      

      
        36

        
          

        

      

      
         

      

    

    (f)           In
the event that (i) an Indemnitee gives Notice of Claim to the Indemnitor and the
Indemnitor fails or elects not to assume a Third Party Defense which the
Indemnitor had the right to assume under this Section 10.4 or (ii) the
Indemnitor is not entitled to assume the Third Party Defense pursuant to this
Section 10.4, the Indemnitee shall have the right, with counsel of its choice,
to defend, conduct and control the Third Party Defense, at the sole cost and
expense of the Indemnitor. In each case, the Indemnitee shall conduct the Third
Party Defense actively and diligently, and the Indemnitor will provide
reasonable cooperation in the Third Party Defense. The Indemnitee shall have the
right to consent to the entry of any judgment or enter into any settlement with
respect to the Third Party Claim on such terms as it may deem appropriate; provided, however, that the amount of
any settlement made or entry of any judgment consented to by the Indemnitee
without the consent of the Indemnitor shall not be determinative of the validity
of the claim, except with the consent of the Indemnitor (not to be unreasonably
withheld or delayed). Notwithstanding Section 11.6 hereof, in connection with
any Third Party Claim, the Indemnitor hereby consents to the nonexclusive
jurisdiction of any court in which an Action in respect of a Third Party Claim
is brought against any Indemnitee for purposes of any claim that the Indemnitee
may have under this Article X with respect to such Action or the matters alleged
therein and agrees that process may be served on the Indemnitor with respect to
such a claim anywhere in the world. If the Indemnitor does not elect to assume a
Third Party Defense which it has the right to assume hereunder, the Indemnitee
shall have no obligation to do so.

     

    (g)           Each
party to this Agreement shall use its commercially reasonable efforts to
cooperate and to cause its employees to cooperate with and assist the Indemnitee
or the Indemnitor, as the case may be, in connection with any Third Party
Defense, including attending conferences, discovery proceedings, hearings,
trials and appeals and furnishing records, information and testimony, as may
reasonably be requested; provided that each
party shall use its best efforts, in respect of any Third Party Claim of which
it has assumed the defense, to preserve the confidentiality of all confidential
information and the attorney-client and work-product privileges.

     

    10.5      Indemnification Procedures
for Non-Third Party Claims. In the event of a
claim that does not involve a Third Party Claim being asserted against it, the
Indemnitee shall send a Notice of Claim to the Indemnitor. The Notice of Claim
shall set forth the amount, if known, or, if not known, an estimate of the
foreseeable maximum amount of claimed Losses (which estimate shall not be
conclusive of the final amount of such Losses) and a description of the basis
for such claim. The Indemnitor will have 30 days from receipt of such Notice of
Claim to dispute the claim and will reasonably cooperate and assist the
Indemnitee in determining the validity of the claim for indemnity. If the
Indemnitor does not give notice to the Indemnitee that it disputes such claim
within 30 days after its receipt of the Notice of Claim, the claim specified in
such Notice of Claim will be conclusively deemed a Loss subject to
indemnification hereunder.

     

    
      
         

      

      
        37

        
          

        

      

      
         

      

    

    10.6      Escrowed Shares. At
the Closing, the Purchase Price Shares shall be delivered to the Escrow Agent to
be held and administered by the Escrow Agent in accordance with the terms of the
Escrow Agreement. In addition to any other remedies Buyer may have for Losses
described in Section 10.2 hereof, Buyer may make a claim against the Purchase
Price Shares for the amount of such Losses by sending a Notice of Claim
described in Section 10.4 or 10.5 to the Escrow Agent. Buyer’s recourse to the
Purchase Price Shares shall be without prejudice to any and all other remedies
Buyer may have pursuant to this Article X or otherwise. Buyer’s remedies for
Losses shall not be limited to the assets comprising the Purchase Price
Shares.

     

    10.7      Contingent Claims.
Nothing herein shall be deemed to prevent an Indemnitee from making a claim
hereunder for potential or contingent claims or demands; provided that the
Notice of Claim sets forth the specific basis for any such contingent claim to
the extent then feasible and the Indemnified Party has reasonable grounds to
believe that such a claim may be made.

     

    10.8      Environmental
Actions. Buyer shall have the right (a) to defend, conduct and control,
with counsel of its choice, any Environmental Action, and (b) to compromise or
settle any Environmental Action. In the event that any Buyer Indemnitee is
required or deems it necessary to perform any Remedial Work in connection with
an Environmental Action, or to avoid the initiation of an Environmental Action,
whether or not formal proceedings have been initiated or threatened with respect
thereto, the Buyer Indemnitees shall have the right to commence and thereafter
prosecute to completion, all such Remedial Work, and shall be indemnified by the
Seller Group with respect to any and all Losses incurred in connection
therewith. “Remedial Work” means any response action, removal action, remedial
action, closure, corrective action, regulatory permitting, monitoring program,
risk assessment, deed restriction, sampling program, investigation or other
activity required, allowed by or consistent with Environmental Law to clean up,
remove, remediate, treat, abate or otherwise address any Hazardous
Substance.

     

    10.9      Effect of Investigation;
Waiver. An Indemnitee’s right to indemnification or other remedies based
upon the representations and warranties and covenants and agreements of the
Indemnitor will not be affected by any investigation or knowledge of the
Indemnitee or any waiver by the Indemnitee of any condition based on the
accuracy of any representation or warranty, or compliance with any covenant or
agreement. Such representations and warranties and covenants and agreements
shall not be affected or deemed waived by reason of the fact that the Indemnitee
knew or should have known that any representation or warranty might be
inaccurate or that the Indemnitor failed to comply with any agreement or
covenant. Any investigation by such party shall be for its own protection only
and shall not affect or impair any right or remedy hereunder.

     

    10.10    Other Rights and Remedies
Not Affected. The indemnification rights of the parties under this
Article X are independent of and in addition to such rights and remedies as the
parties may have at Law or in equity or otherwise for any misrepresentation,
breach of warranty or failure to fulfill any agreement or covenant hereunder on
the part of any party hereto, including the right to seek specific performance,
rescission or restitution, none of which rights or remedies shall be affected or
diminished hereby.

     

    ARTICLE
XI

    MISCELLANEOUS

     

    11.1      Notices. Any notice,
request, demand, waiver, consent, approval or other communication which is
required or permitted hereunder shall be in writing and shall be deemed given
(a) on the date established by the sender as having been delivered personally,
(b) on the date delivered by a private courier as established by the sender by
evidence obtained from the courier, (c) on the date sent by facsimile, with
confirmation of transmission, if sent during normal business hours of the
recipient, if not, then on the next business day, or (d) on the fifth day after
the date mailed, by certified or registered mail, return receipt requested,
postage prepaid. Such communications, to be valid, must be addressed as
follows:

    
      
         

      

      
        38

        
          

        

      

      
         

      

    

    If to
Buyer, to:

     

    Li3
Energy, Inc.

    Av. Pardo
y Aliaga 699 Of. 802

    San
Isidro, Lima

    Perú

    Attention:  Luis
Saenz

    Facsimile:

    Telephone:
51-1-212-1880

    

    With a
required copy to:

     

    Gottbetter
& Partners, LLP

    488
Madison Avenue, 12th Floor

    New York,
New York  10022

    USA

    Attention:  Adam
S. Gottbetter

    Facsimile:  (212)
400-6901

    Telephone:  (212)
400-6900

    

    If to the
Seller Group, to:

     

    Next
Lithium Corp.

    131 Bloor
Street West, Upper Penthouse

    Toronto,
Ontario  M5S 1S3

    Canada

    Attention:  President

    Facsimile:  (416)
924-0000

     

    With a
required copy to:

     

    WeirFoulds
LLP

    1600-130
King Street West

    Toronto,
Ontario  M5X 1J5

    Canada

    Attention:  Sanjay
Joshi

    Facsimile:  (416)-365-1876

    

    or to
such other address or to the attention of such Person or Persons as the
recipient party has specified by prior written notice to the sending party (or
in the case of counsel, to such other readily ascertainable business address as
such counsel may hereafter maintain). If more than one method for sending notice
as set forth above is used, the earliest notice date established as set forth
above shall control.

     

    
      11.2      Amendments and
Waivers.

    

     

    (a)           Any
provision of this Agreement may be amended or waived if, and only if, such
amendment or waiver is in writing and is signed, in the case of an amendment, by
each party to this Agreement, or in the case of a waiver, by the party against
whom the waiver is to be effective.

     

    
      
         

      

      
        39

        
          

        

      

      
         

      

    

    (b)           No
failure or delay by any party in exercising any right or privilege hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any
other right, power or privilege.

     

    (c)           To
the maximum extent permitted by Law, (i) no waiver that may be given by a party
shall be applicable except in the specific instance for which it was given and
(ii) no notice to or demand on one party shall be deemed to be a waiver of any
obligation of such party or the right of the party giving such notice or demand
to take further action without notice or demand.

     

    11.3      Expenses. Each party
shall bear its own costs and expenses in connection with
this Agreement, the Ancillary Agreements and the transactions contemplated
hereby and thereby, including all legal, accounting, financial advisory,
consulting and all other fees and expenses of third parties, whether or not the
transactions contemplated by this Agreement are consummated.

     

    11.4      Successors and
Assigns. This Agreement may not be assigned by either party
hereto without the prior written consent of the other party; provided that,
without such consent, Buyer may transfer or assign this Agreement, in
whole or in part or from time to time, to one or more of its Affiliates, but no
such transfer or assignment will relieve Buyer of its obligations hereunder.
Subject to the foregoing, all of the terms and provisions of this Agreement
shall inure to the benefit of and be binding upon the parties hereto and their
respective executors, heirs, personal representatives, successors and
assigns.

     

    11.5      Governing Law. This
Agreement and Schedules hereto shall be governed by and
interpreted and enforced in accordance with the Laws of the State of New York,
without giving effect to any choice of Law or conflict of Laws rules or
provisions (whether of the State of New York or any other jurisdiction) that
would cause the application of the Laws of any jurisdiction other than the State
of New York.

     

    11.6      Consent to
Jurisdiction. Each party irrevocably submits to the exclusive
jurisdiction of the United States District Court for the Southern District of
New York sitting in the Borough of Manhattan, for the purposes of any Action
arising out of this Agreement or any transaction contemplated hereby. Each party
agrees to commence any such Action either in the United States District Court
for the Southern District of New York sitting in the Borough of Manhattan. Each
party further agrees that service of any process, summons, notice or document by
U.S. registered mail to such party’s respective address set forth above shall be
effective service of process for any Action in the United States District Court
for the Southern District of New York sitting in the Borough of Manhattan with
respect to any matters to which it has submitted to jurisdiction in this Section
11.6. Each party irrevocably and unconditionally waives any objection to the
laying of venue of any Action arising out of this Agreement or the transactions
contemplated hereby in the United States District Court for the Southern
District of New York sitting in the Borough of Manhattan, and hereby further
irrevocably and unconditionally waives and agrees not to plead or claim in any
such court that any such Action brought in any such court has been brought in an
inconvenient forum. EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
JURY IN ANY ACTION (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF
OR RELATING TO THIS AGREEMENT AND THE ANCILLARY AGREEMENTS OR THE ACTIONS OF
SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT
HEREOF AND THEREOF.

     

    11.7      Counterparts. This
Agreement may be executed in any number of
counterparts, and any party hereto may execute any such counterpart, each of
which when executed and delivered shall be deemed to be an original and all of
which counterparts taken together shall constitute but one and the same
instrument. This Agreement shall become effective when each party hereto shall
have received a counterpart hereof signed by the other party hereto. The parties
agree that the delivery of this Agreement, and the delivery of the Ancillary
Agreements and any other agreements and documents at the Closing, may be
effected by means of an exchange of facsimile signatures with original copies to
follow by mail or courier service.

     

    
      
         

      

      
        40

        
          

        

      

      
         

      

    

    11.8      Third Party
Beneficiaries. No provision of this Agreement is intended to
confer upon any Person other than the parties hereto any rights or remedies
hereunder; except that in the case of Article X hereof, the other Indemnitees
and their respective heirs, executors, administrators, legal representatives,
successors and assigns, are intended third party beneficiaries of such sections
and shall have the right to enforce such sections in their own
names.

     

    11.9      Entire Agreement.
This Agreement, the Ancillary Agreements, the Schedules
and the other documents, instruments and agreements specifically referred to
herein or therein or delivered pursuant hereto or thereto set forth the entire
understanding of the parties hereto with respect to the transactions
contemplated by this Agreement. All Schedules referred to herein are intended to
be and hereby are specifically made a part of this Agreement. Any and all
previous agreements and understandings between or among the parties regarding
the subject matter hereof, whether written or oral, are superseded by this
Agreement, except for the Confidentiality Agreement which shall continue in full
force and effect in accordance with its terms.

     

    11.10    Captions. All
captions contained in this Agreement are for convenience of reference only, do
not form a part of this Agreement and shall not affect in any way the meaning or
interpretation of this Agreement.

     

    11.11    Severability. Subject
to Section 6.8(d), any provision of this Agreement which
is invalid or unenforceable in any jurisdiction shall be ineffective to the
extent of such invalidity or unenforceability without invalidating or rendering
unenforceable the remaining provisions hereof, and any such invalidity or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     

    11.12    Specific Performance.
Buyer and each member of the Seller Group each agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed by them in accordance with the terms hereof and that each party shall
be entitled to specific performance of the terms hereof, in addition to any
other remedy at Law or equity.

     

    11.13    Interpretation.

     

    (a)           The
meaning assigned to each term defined herein shall be equally applicable to both
the singular and the plural forms of such term and vice versa, and words
denoting either gender shall include both genders as the context requires. Where
a word or phrase is defined herein, each of its other grammatical forms shall
have a corresponding meaning.

     

    (b)           The
terms “hereof”, “herein” and “herewith” and words of similar import shall,
unless otherwise stated, be construed to refer to this Agreement as a whole and
not to any particular provision of this Agreement.

     

    (c)           When
a reference is made in this Agreement to an Article, Section, paragraph, Exhibit
or Schedule, such reference is to an Article, Section, paragraph, Exhibit or
Schedule to this Agreement unless otherwise specified.

     

    (d)           The
word “include”, “includes”, and “including” when used in this Agreement shall be
deemed to be followed by the words “without limitation”, unless otherwise
specified.

    
      
         

      

      
        41

        
          

        

      

      
         

      

    

    (e)           A
reference to any party to this Agreement or any other agreement or document
shall include such party’s predecessors, successors and permitted
assigns.

     

    (f)           Reference
to any Law means such Law as amended, modified, codified, replaced or reenacted,
and all rules and regulations promulgated thereunder.

     

    (g)           The
parties have participated jointly in the negotiation and drafting of this
Agreement and the Ancillary Agreements. Any rule of construction or
interpretation otherwise requiring this Agreement or the Ancillary Agreements to
be construed or interpreted against any party by virtue of the authorship of
this Agreement or the Ancillary Agreements shall not apply to the construction
and interpretation hereof and thereof.

     

    (h)           All
accounting terms used and not defined herein shall have the respective meanings
given to them under GAAP.

     

    [REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
         

      

      
        42

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed by their respective authorized officers as of the date first above
written.

     

    
      
        
          
            
              
                
                  	
                          LI3
      ENERGY, INC.

                        	 
	 
      	 
	
                          By:

                        	
                          /s/ Luis Saenz

                        	 
	
                          Name:  Luis
      Saenz

                        	 
	
                          Title:  CEO

                        	 
	 
      	 
	
                          NEXT
      LITHIUM CORP.

                        	 
	 
      	 
	
                          By:

                        	
                          /s/ David J. DesLauriers

                        	 
	
                          Name:  David
      J. DesLauriers

                        	 
	
                          Title:  Director

                        	 
	 
      	 
	
                          NEXT
      LITHIUM (NEVADA) CORP.

                        	 
	 
      	 
	
                          By:

                        	
                          /s/ David J. DesLauriers

                        	 
	
                          Name:  David
      J. DesLauriers

                        	 
	
                          Title:  Director

                        	 

                

              

            

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Seller
Disclosure Schedule

     

    None.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Buyer
Disclosure Schedule

     

    None.

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