Document:

Exhibit 10.6

 

FIRST AMENDMENT
OF LEASE

 

THIS
FIRST AMENDMENT OF LEASE (this “Amendment”) made as of the    
day of September, 2002 between THE EQUITABLE LIFE ASSURANCE SOCIETY OF THE
UNITED STATES and ELAS SECURITIES ACQUISITION CORP., each having an office at
1290 Avenue of the Americas, New York, New York 10104 (collectively, “Landlord”),
as landlord, and KEEFE, BRUYETTE & WOODS, INC., having an office at 787
Seventh Avenue, New York, New York 10019 (collectively, “Tenant”), as
tenant.

 

W  I  T
N  E  S  S  E  T  H

 

WHEREAS,
pursuant to that certain Agreement of Lease, dated as of November 12, 2001 (the
“Lease”), Landlord leased to Tenant, and Tenant hired from Landlord,
certain premises consisting of the entire fourth (4th) floor (as more particularly described
in the Lease) in the building known as 787 Seventh Avenue, New York, New York
(the “Building”); and

 

WHEREAS,
Landlord and Tenant desire to amend certain terms of the Lease and to add
certain provisions thereto to provide for (i) the leasing by Tenant of certain
space on the sixth (6th)
floor of the Building, (ii) certain agreements between Landlord and Tenant
relating to such space, and (iii) certain other matters, all as hereinafter
provided.

 

NOW
THEREFORE, in consideration of the sum of Ten Dollars ($10.00) paid by Tenant
to Landlord and for other good and valuable consideration, the mutual receipt
and legal sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

1.                                      Amendments to Definitions.

 

(a)                                  Unless otherwise stated herein,
all capitalized terms used in this Amendment shall have the meanings specified
in the Lease.

 

(b)                                 The defined terms hereinafter
set forth are restated as follows:

 

“Premises”
shall mean, subject to the provisions of Section 4.3 hereof, all of
the rentable area of the fourth (4th) floor of the Building as indicated by
hatching on Exhibit “A” attached hereto and made a part
hereof, and shall also include (i) the Expansion One Space as of the Expansion
One Commencement Date and (ii) the Expansion Two Space as of the Expansion Two
Commencement Date. Such fourth (4th)
floor is hereinafter sometimes referred to as the “Initial Premises”.

 

“Tenant’s
Share” shall mean three and two hundred seventeen one-thousandths percent
(3.217%), as the same may be increased or decreased pursuant to the terms
hereof. Landlord and Tenant hereby expressly acknowledge and agree that the
percentage set forth in this Lease as the Tenant’s Share for the Premises is
the percentage as agreed to by Landlord and Tenant and shall not, except as otherwise
herein provided, be subject to change for any reason, including, without 

 

 

limitation,
a redetermination of the measurement of the rentable area of the Building or
the Premises, except that such percentages will be subject to change by reason
of any alteration or improvement being performed to the Building which
increases or decreases the rentable area of the Building.

 

(c)                                  The defined terms hereinafter
set forth are hereby inserted in the “DEFINITIONS” section of the Lease in the
appropriate alphabetical location:

 

“Anticipated
Delivery Date One” shall have the meaning set forth in Section 22.2 hereof.

 

“Anticipated
Delivery Date Two” shall have the meaning set forth in Section 22.2 hereof.

 

“Anticipated
Delivery Notice” shall have the meaning set forth in Section 1.2(d) hereof.

 

“Completion
Notice” shall have the meaning set forth in Section 1.2(c) hereof.

 

“Completion
Date” shall have the meaning set forth in Section 1.2(c) hereof.

 

“Credit
Period” shall have the meaning set forth in Section 22 hereof.

 

“Demising
Wall” shall have the meaning set forth in item 1 of Schedule I hereto.

 

“Electricity
Set-Off Amount” shall have the meaning set forth in Section 13(A)
hereof.

 

“Expansion
One Commencement Date” shall mean the date on which Landlord shall deliver
possession of the Expansion One Space and the Expansion One Included Personal
Property to Tenant in accordance with the terms and conditions of Section
1.1 hereof.

 

“Expansion
One Equipment Closet” shall have the meaning set forth in Article 14 hereof.

 

“Expansion
One Included Personal Property” shall have the meaning set forth in Section
1.1 hereof.

 

“Expansion
One Space” shall mean, subject to the provisions of Section 4.3
hereof, a portion of the rentable area of the western side of the sixth (6th) floor of the Building as
indicated by hatching on Exhibit “G” attached hereto and made a part
hereof.

 

“Expansion
One Space First Rental Period” shall mean the period commencing on the
Expansion One Commencement Date and ending on the five-year anniversary of the
Expansion One Commencement Date.

 

“Expansion
One Space Second Rental Period” shall mean the five-year period commencing
on the day immediately succeeding the expiration of the Expansion One Space
First Rental Period and ending on the five-year anniversary of the expiration
date of the Expansion One Space First Rental Period.

 

“Expansion
One Space Third Rental Period” shall mean the period commencing on the day
immediately succeeding the expiration of the Expansion One Space Second Rental
Period and ending on the Fixed Expiration Date.

 

2

 

“Expansion
Two Commencement Date” shall mean the date on which Landlord shall deliver
possession of the Expansion Two Space and the Expansion Two Included Personal
Property to Tenant in accordance with the terms and conditions of Section
1.1 hereof.

 

“Expansion
Two Daily Rent” shall have the meaning set forth in Section 1.2 hereof.

 

“Expansion
Two Included Personal Property” shall have the meaning set forth in Section
1.1 hereof.

 

“Expansion
Two Space” shall mean, subject to the provisions of Section 4.3
hereof, a portion of the rentable area of the eastern side of the sixth (6th) floor of the Building as
indicated by hatching on Exhibit “L” attached hereto and made a part
hereof.

 

“Expansion
Two Space First Rental Period” shall mean the period commencing on the
Expansion Two Commencement Date and ending on the five-year anniversary of the
Expansion Two Commencement Date.

 

“Expansion
Two Space Second Rental Period” shall mean the five-year period commencing
on the day immediately succeeding the expiration of the Expansion Two Space
First Rental Period and ending on the five-year anniversary of the expiration
date of the Expansion Two Space First Rental Period.

 

“Expansion
Two Space Third Rental Period” shall mean the period commencing on the day
immediately succeeding the expiration of the Expansion Two Space Second Rental
Period and ending on the Fixed Expiration Date.

 

“First
Expansion Holdover Period” shall have the meaning set forth in Section 20.2
hereof.

 

“Included
Personal Property” shall have the meaning set forth in Section 1.1 hereof.

 

“Initial
Included Personal Property” shall have the meaning set forth in Section 1.1
hereof.

 

“Initial
Premises” shall have the meaning set forth in the definition of “Premises”
below.

 

“Landlord’s
Expansion One Work” shall have the meaning set forth in Section 1.1 hereof.

 

“Landlord’s
Expansion Two Work” shall have the meaning set forth in Section 1.1 hereof.

 

“License
Agreement” shall have the meaning set forth in Section 14 hereof.

 

“Licensee”
shall have the meaning set forth in Section 14 hereof.

 

“Licensee’s
Equipment” shall have the meaning set forth in Section 14 hereof.

 

“Outside
Completion Date” shall have the meaning set forth in Section 1.1 hereof.

 

3

 

“Overtime
Fees” shall have the meaning set forth in Section 1.1 hereof.

 

“Setback
Access Windows” shall have the meaning set forth in Article 14.4
hereof.

 

2.                                      Amendments to Article 1.

 

Section 1.1 of the Lease is hereby amended as follows:

 

The
third through eighth sentences thereof are hereby deleted in their entirety and
the following sentences are hereby inserted in substitution therefor:  “Tenant hereby agrees to accept (i)
possession of the Initial Premises in its “as is” condition on the Commencement
Date, (ii) possession of the Expansion One Space in its “as is” condition on
the Expansion One Commencement Date, and (iii) possession of the Expansion Two
Space in its “as is” condition as of the date of this Amendment on the
Expansion Two Commencement Date, in each case vacant of personal property
(except for (x) those items of personal property set forth on Exhibit “E”
attached hereto and made a part hereof (the “Initial Included Personal
Property”)) in the case of the Initial Premises, (y) those items of
personal property set forth on Exhibit “H” attached hereto
and made a part hereof (the “Expansion One Included Personal Property”)
in the case of the Expansion One Space) and (z) those items of personal
property set forth on Exhibit “M” attached hereto and made a part hereof
(the “Expansion Two Included Personal Property”, and, together with the
Initial Included Personal Property and the Expansion One Included Personal Property,
the “Included Personal Property”) in the case of the Expansion Two
Space, in each case unoccupied and free of any leases or tenancies, and in
broom clean condition; provided, however, that (i) prior to the
Commencement Date Landlord shall install a fire-rated partition in the
previously-existing doorway accessing the internal stairs located between the
fourth (4th) and
fifth (5th) floors of the
Building (the “Fourth Floor Internal Stairs”) at Landlord’s sole cost
and expense in accordance with applicable Requirements (“Landlord’s Work”),
(ii) not later than October 28, 2002 (the “Outside Completion Date”),
Landlord shall complete the work described on Exhibit “I” attached
hereto and made a part hereof at Landlord’s sole cost and expense in accordance
with applicable Requirements (“Landlord’s Expansion One Work”), and
(iii) not later than the Expansion Two Commencement Date, Landlord shall
complete the work described on Exhibit “N” attached hereto and made a
part hereof at Landlord’s sole cost and expense in accordance with applicable
Requirements (“Landlord’s Expansion Two Work”). Landlord agrees that,
subject to the completion of Landlord’s Expansion One Work and Landlord’s
Expansion Two Work, the “as is” condition in which the Expansion One Space and the
Expansion Two Space shall be delivered to Tenant shall be materially similar to
the “as is” condition of such Expansion One Space and such Expansion Two Space
as of the date of this Amendment. Landlord agrees that, notwithstanding the
foregoing, on (i) the Commencement Date the Initial Premises shall be in
compliance with all Requirements, (ii) the Completion Date, the Expansion One
Space shall be in compliance with all Requirements, and (iii) the Expansion Two
Commencement Date, the Expansion Two Space shall be in compliance with all
Requirements, except to the extent in each case the non-compliance therewith
(i) would not adversely affect Tenant’s ability to perform any Initial
Alterations and (ii) would otherwise be cured by the performance of the
Initial Alterations, including, without limitation, any Initial Alteration
consisting of or including any demolition of any portion of the Premises.
Tenant acknowledges that Landlord will be performing Landlord’s Expansion One
Work and Landlord’s Expansion Two Work after the Expansion One Commencement
Date, and Tenant agrees that the 

 

4

 

performance
of Landlord’s Expansion One Work shall not affect the occurrence of the
Expansion One Commencement Date or be deemed an eviction, constructive or
otherwise, or otherwise affect the validity of this Lease or the obligations of
Tenant hereunder. After the Expansion One Commencement Date, Landlord and
Tenant shall each reasonably cooperate with the other to minimize interference
with Landlord’s performance of Landlord’s Expansion One Work, Landlord’s
Expansion Two Work and Tenant’s performance of the Initial Alterations, as the
case may be, taking into account good construction scheduling practices and the
nature of Landlord’s Expansion One Work, Landlord’s Expansion Two Work and the
Initial Alterations in the scheme of the overall construction of the Expansion
One Space and the Expansion Two Space. If at any time Tenant shall determine in
its reasonable discretion that Landlord’s performance of Landlord’s Expansion
One Work or Landlord’s Expansion Two Work is materially interfering with
Tenant’s use and occupancy of the Premises, Expansion One Space or the
Expansion Two Space in accordance with the terms and conditions of this Lease,
Tenant shall so notify Landlord in writing (which notice shall include a
reasonably detailed description of the nature and extent of such interference
and the aspect of Landlord’s performance of Landlord’s Expansion One Work or
Landlord’s Expansion Two Work causing such interference) and Landlord, within
such time as is reasonably practicable under the circumstances, shall
thereafter employ contractors or labor at so-called overtime or other premium
pay rates to perform the aspects of Landlord’s Expansion One Work or Landlord’s
Expansion Two Work which shall have been causing such interference and incur
any other overtime costs or expenses in performing such aspects of Landlord’s
Expansion One Work as shall be necessary to reduce such interference to the
extent reasonably practicable under the circumstances, provided that with
respect to Landlord’s Expansion One Work only, Tenant shall pay to Landlord, as
additional rent, within ten (10) Business Days after demand, an amount equal to
the difference between (i) the actual amounts incurred by Landlord for the
overtime or other premium pay rates, including all fringe benefits and other
elements of such pay rates (collectively, the “Overtime Fees”), and
(ii) the regular pay rates for such labor, including all fringe benefits
and other elements of such pay rates. Any Overtime Fees incurred by Landlord in
connection with the Expansion Two Work shall be at Landlord’s sole cost and
expense. Landlord shall not permit possession or occupancy of the Expansion Two
Space by any third party (other than Landlord’s agents, contractors and
subcontractors solely in connection with the performance of Landlord’s
Expansion One Work) prior to the completion of the Demising Wall. If at any
time Landlord shall be ready willing and able to commence or proceed with the
performance of any aspect of Landlord’s Expansion One Work and as a result of
any unreasonable act, omission or negligence of Tenant or Tenant’s contractors,
licensees, agents, servants, employees, invitees or visitors Landlord shall be
delayed in the performance of such aspect of Landlord’s Expansion One Work and
Landlord provides notice to Tenant as set forth in the following sentence, the
Outside Completion Date shall be extended by one day for each day of such
delay. If Landlord shall claim a delay, Landlord shall notify Tenant of the
delay within three (3) Business Days of the occurrence thereof, such notice to
include a description of the aspect of Landlord’s Expansion One Work subject to
such delay.

 

Tenant will accept (i) the Initial Included Personal
Property as of the Commencement Date, (ii) the Expansion One Included Personal
Property as of the Expansion One Commencement Date, and (iii) the Expansion Two
Included Personal Property as of the Expansion Two Commencement Date, in each
case in their “as-is” and “where-is” condition, and acknowledges that Landlord
has not made any representations or warranties as to the condition or fitness
of the 

 

5

 

Included Personal Property for use. The Included
Personal Property, the Expansion One Included Personal Property and the
Expansion Two Included Personal Property, as applicable, shall be leased to
Tenant in accordance with all of the terms and conditions of this Lease
throughout the Term but shall remain the property of Landlord for all purposes
and shall be returned to Landlord on the Expiration Date in its “as-is”
condition as of the Expiration Date, subject, nevertheless, to the performance
by Tenant of its obligations pursuant to the provisions of this Lease. Notwithstanding
the foregoing, Tenant shall have the right from time to time during the Term to
deliver notice to Landlord indicating that Tenant no longer desires to lease
any item of the Included Personal Property, the Expansion One Included Personal
Property or the Expansion Two Included Personal Property, as applicable, and
within five (5) Business Days of receipt of such notice, Landlord shall in its
sole discretion elect to (x) accept the return of such Included Personal
Property, Expansion One Included Personal Property, or Expansion Two Included
Personal Property, as applicable, in its “as-is” condition or (y) decline the
return of such Included Personal Property, Expansion One Included Personal
Property, or Expansion Two Included Personal Property, as applicable, in which
event Tenant may in its discretion and at its sole cost and expense dispose of
such Included Personal Property, Expansion One Included Personal Property, or
Expansion Two Included Personal Property, as applicable, without liability or
cost to Landlord. If Landlord shall fail to deliver the notice of its election
of either item (x) or (y) in accordance with the foregoing
sentence, Landlord shall be deemed to have elected to decline the return of
such Included Personal Property, Expansion One Included Personal Property, or
Expansion Two Included Personal Property, as applicable, pursuant to such item
(y).”

 

The existing Section 1.2(a) is hereby deleted in its
entirety and the following Section 1.2(a) is hereby inserted therefor:

 

Section
1.2                                      (a)  Promptly after the occurrence of (i) the
Commencement Date with respect to the Initial Premises, (ii) the Expansion One
Commencement Date with respect to Expansion One Space and (iii) the Expansion Two
Commencement Date with respect to the Expansion Two Space, Landlord and Tenant
shall execute and deliver to each other an agreement in the form attached
hereto as Exhibit “D” and in mutually reasonably
satisfactory substance (each, a “Premises Delivery Notice”)
memorializing (i) the Commencement Date and the Rent Commencement Date, (ii)
the Expansion One Commencement Date or (iii) the Expansion Two Commencement
Date, as applicable; provided, however, that the failure to
deliver a Premises Delivery Notice shall not affect the occurrence of the
Commencement Date, the Rent Commencement Date, the Expansion One Commencement
Date, the Expansion Two Commencement Date, the Fixed Expiration Date or the
rights and obligations of the parties under this Lease.

 

New Sections 1.2(c), 1.2(d), 1.2(e) and 1.2(f) are
hereby inserted after the existing Section 1.2(b) as follows:

 

Section
1.2(c).                     Promptly
after the substantial completion of Landlord’s Expansion One Work, Landlord
shall deliver to Tenant a notice in the form attached hereto as Exhibit “D”
(the “Completion Notice”) memorializing the date on which Landlord’s
Expansion One Work shall have been substantially completed (such date, the “Completion
Date”); provided, however, that the failure to deliver a
Completion Notice shall not affect the occurrence of the Completion Date, 

 

6

 

the
Commencement Date, the Rent Commencement Date, the Expansion One Commencement
Date, the Fixed Expiration Date or the rights and obligations of the parties
under this Lease.

 

Section
1.2(d).                    Prior
to the delivery of the Expansion Two Space, Landlord shall deliver to Tenant a
notice (an “Anticipated Delivery Notice”) indicating the date on which
Landlord anticipates delivering the Expansion Two Space to Tenant in accordance
with Section 1.1 hereof, which anticipated delivery date shall not be less than
forty-five (45) days after the date of delivery of such Anticipated Delivery
Notice. Upon the delivery of such Anticipated Delivery Notice, Landlord shall
have the right to deliver the Expansion Two Space to Tenant at any time on or
after the anticipated delivery date indicated therein. From and after the date
of this Amendment, Landlord shall keep Tenant reasonably informed as to such
anticipated delivery date (which information may be oral). Tenant may from time
to time (but not more frequently than one (1) time every three (3) weeks during
the Term) deliver notice to Landlord requesting the status of the anticipated
delivery date, and Landlord shall respond to such notice within five (5)
Business Days of receipt thereof.

 

Section
1.2(e).                     If
the Expansion One Commencement Date shall occur on a date other than the first
(1st) day of any calendar month, on the Expansion One Commencement
Date Tenant shall pay to Landlord an amount equal to the product of One
Thousand Six Hundred Ten and 10/100 Dollars ($1,610.10) multiplied by the
number of calendar days in the period from the Expansion One Commencement Date
to the last day of the month in which the Expansion One Commencement Date shall
occur, both dates inclusive.

 

Section
1.2(f).                       If
the Expansion Two Commencement Date shall occur on a date other than the first
(1st) day of any calendar month, on the Expansion Two Commencement
Date Tenant shall pay to Landlord an amount equal to the product of One
Thousand Four Hundred Eight and 56/100 Dollars ($1,408.56) (the “Expansion
Two Daily Rent”) multiplied by the number of calendar days in the period
from the Expansion Two Commencement Date to the last day of the month in which
the Expansion Two Commencement Date shall occur, both dates inclusive.

 

3.                                      Amendments to Article 13.

 

Section 13.2(A) is hereby amended by adding the
following proviso at the end of the last sentence: “; provided  however,
that for the period beginning on the Expansion One Commencement Date and ending
on the Expansion Two Commencement Date, the Electricity Additional Rent shall
be reduced by Twenty Thousand Five Hundred Sixty-Five and 00/100 Dollars
($20,565.00) ($2.50 multiplied by the Space Factor attributable to the
Expansion Two Space) per annum ($56.34 per day) (the “Electricity Set-Off
Amount”). If Tenant shall reasonably believe that the charges with respect
to electricity consumed by any third party occupying the Expansion Two Space
exceeds the Electricity Set-Off Amount by more than a de minimis amount, Tenant
may from time to time (but not more than two (2) times during the Term) deliver
notice to Landlord requesting that Landlord determine the actual consumption of
electricity by such third party, and upon receipt of such notice Landlord shall
determine the amounts attributable to such third party’s usage as determined by
an electric survey conducted by a third-party consultant selected by Landlord
in its reasonable discretion provided that such third-party consultant shall
charge no more than market competitive rates (with the cost of such 

 

7

 

electric survey to be shared equally by Landlord and
Tenant), provided that Landlord’s obligations under this Section shall be
limited to the enforcement of its rights to conduct such a survey pursuant to
the License Agreement (as defined below). If such survey shall determine that
the charges attributable to a third party’s usage with respect to the Expansion
Two Space exceed the Electricity Set-Off Amount, the Electricity Set-Off Amount
shall be increased by the dollar amount of such excess. Tenant shall be
entitled to credit the increased Electricity Set-Off Amount against the next
payment of Electricity Additional Rent due after the date of such survey, and
Tenant shall also be entitled to a credit for the difference between the
increased Electricity Set-Off Amount and the original Electricity Set-Off
Amount to compensate Tenant for the overage of Electricity Additional Rent
which Tenant paid prior to such survey.

 

4.                                      Amendments to Article 14.

 

A new Section 14.4 is hereby inserted after the
existing Section 14.3 as follows:

 

Section 14.4.                             (A) Notwithstanding
anything herein contained to the contrary (including Article 5 of the Lease),
Landlord shall have access to the windows in the Premises as indicated on Exhibit
“J” attached hereto and made a part hereof (collectively, the “Setback
Access Windows”) in connection with the cleaning of the Building’s windows,
maintenance and other reasonable Building requirements on such days and at such
times as scheduled by the Building manager or cleaning personnel (which said
schedule Landlord shall promptly deliver to Tenant) and otherwise upon
reasonable prior notice to Tenant (except that no such notice shall be required
in the case of an emergency).

 

(B)
Landlord and Tenant acknowledge and agree that Landlord intends to enter into a
license agreement (the “License Agreement”) with Combined Specialty Insurance
Company or an entity which is an Affiliate of Combined Specialty Insurance
Company as of the date of this Amendment (the “Licensee”, provided that
for purposes of this sentence all references to “Landlord” in the definition of
“Affiliate” shall be deemed references to Combined Specialty Insurance
Company), with whom Landlord is conducting negotiations regarding the Expansion
Two Space as of the date of this Amendment. Tenant acknowledges that, pursuant
to the License Agreement, Landlord may grant to Licensee the right upon at
least one (1) Business Day prior written notice to Tenant to access the
electrical closets located in the Expansion One Space as indicated by hatching
on Exhibit “O” hereto (the “Expansion One Equipment Closet”)
solely for the purpose of installing, utilizing, repairing, maintaining, or
replacing the equipment more particularly described on Exhibit “P”
hereto (“Licensee’s Equipment”) and to be located in the Expansion One
Equipment Closet, which work shall be performed in a professional and diligent
manner. Tenant agrees to make available to Licensee such access to the
Expansion One Equipment Closet on at least one (1) Business Day prior written
notice to Tenant during Tenant’s normal business hours (which are from 8:00
a.m. to 5:00 p.m.) on Business Days (or to Landlord at other times in the event
of an emergency) for the period from the Expansion One Commencement Date
through and including the Expansion Two Commencement Date. Upon delivery of
such notice to Tenant, Landlord, Landlord’s agents, contractors and employees,
Licensee, and Licensee’s agents, subject to compliance with Tenant’s security
requirements (which security requirements shall not preclude entry into the
Premises and the Expansion One Equipment Closet by Licensee in accordance with
the terms of this Section 14.4(B)), shall have the right to enter the Premises
solely to access the Expansion One Equipment Closet as aforesaid. 

 

8

 

At
Tenant’s discretion, an agent or representative of Tenant may be present during
Licensee’s access to the Expansion One Equipment Closet.

 

5.                                      Amendments to Article 20.

 

The subsection heading “Section 20.1” is hereby
inserted prior to the text of the existing Article 20.

 

A new Section 20.2 is hereby inserted after such
Section 20.1 as follows:

 

Section 20.2.                             Upon a termination of this
Lease by Tenant with respect to the Expansion One Space in accordance with
Section 22.2 hereof, Tenant shall quit and surrender to Landlord the Expansion
One Space on the applicable Expansion Termination Date, vacant, broom clean, in
good order and condition, ordinary wear and tear and damage for which Tenant is
not responsible under the terms of this Lease excepted, and otherwise in
compliance with the provisions of Article 3 hereof. Tenant expressly
waives, for itself and for any person claiming through or under Tenant, any
rights which Tenant or any such person may have under the provisions of Section
2201 of the New York Civil Practice Law and Rules and of any successor law of
like import then in force in connection with any holdover summary proceedings
which Landlord may institute to enforce the foregoing provisions of this Section
20.2. Tenant acknowledges that possession of the Expansion One Space must
be surrendered to Landlord on the applicable Expansion Termination Date. The
parties recognize and agree that the damage to Landlord resulting from any
failure by Tenant to timely surrender possession of the Expansion One Space as
aforesaid will be extremely substantial, will exceed the amount of the monthly
installments of the Fixed Rent and Escalation Rent theretofore payable
hereunder in connection with the Expansion One Space, and will be impossible to
measure accurately. Tenant therefore agrees that if possession of the Expansion
One Space is not surrendered to Landlord on or before the Expansion Termination
Date, in addition to any other rights or remedies Landlord may have hereunder
or at law, and without in any manner limiting Landlord’s right to demonstrate
and collect any damages suffered by Landlord and arising from Tenant’s failure
to surrender the Expansion One Space as provided herein, Tenant shall pay to
Landlord on account of use and occupancy of the Expansion One Space for each
month and for each portion of any month during which Tenant holds over in the
Expansion One Space after the Expansion Termination Date, a sum equal to (a)
one and one-half (11⁄2) times the aggregate of that portion of the Fixed Rent and
Escalation Rent which were payable under this Lease in connection with the
Expansion One Space as set forth in Section 39.2(A) and (C) of this Lease
during the month preceding the Expansion Termination Date for each month of
such holdover during the period commencing on the Expiration Termination Date
and ending sixty (60) days after the Expiration Termination Date (the “First
Expansion Holdover Period”) and (b) two (2) times the aggregate of that
portion of the Fixed Rent and Escalation Rent which were payable under this
Lease in connection with the Expansion One Space as set forth in Section
39.2(A) and (C) of this Lease during the month preceding the Expansion
Termination Date for each month of such holdover during the period commencing
on the day next succeeding the end of the First Expansion Holdover Period and
ending on the day on which Tenant shall surrender the Expansion One Space in
accordance with the terms and conditions of this Lease. Nothing herein
contained shall be deemed to permit Tenant to retain possession of the
Expansion One Space without written consent after the Expansion Termination
Date or to limit in any manner Landlord’s right to regain possession of 

 

9

 

the Expansion One
Space through summary proceedings, or otherwise, and no acceptance by Landlord
of payments from Tenant after the Expansion Termination Date shall be deemed to
be other than on account of the amount to be paid by Tenant in accordance with
the provisions of this Section 20.2. The provisions of this Section
20.2 shall survive the Expiration Date.

 

6.                                      Amendments to Article 22.

 

The existing Section 22.2 is hereby deleted in its
entirety and the following Section 22.2 is hereby inserted therefor:

 

Section
22.2.                             (A)
Landlord anticipates that (i) the Expansion One Commencement Date shall occur
not later than September 5, 2002 (the “Anticipated Delivery Date One”),
(ii) the Completion Date shall occur on or prior to the Outside Completion Date
and (iii) the Expansion Two Commencement Date shall occur (1) not earlier than
January 1, 2003 and (2) not later than April 30, 2003 (the “Anticipated
Delivery Two Period”). Failure to give possession of the Expansion One
Space on the Anticipated Delivery Date One or to complete Landlord’s Expansion
One Work prior to the Outside Completion Date or to give possession of the
Expansion Two Space during the Anticipated Delivery Two Period shall not in any
way affect the validity of this Lease or extend the term or affect the Fixed
Expiration Date or give rise to any claim for damage by Tenant (except to the
extent that such damages arise out of Landlord’s breach of its obligation not
to permit possession or occupancy of the Expansion Two Space by any third party
(other than Landlord’s agents, contractors and subcontractors solely in connection
with the performance of Landlord’s Expansion One Work) prior to completion of
the Demising Wall as set forth in Section 1.1) or claim for rescission of this
Lease, nor shall the same be construed in any way to extend the Term; provided,
however, that (i) if the Completion Date shall not have occurred on or
prior to the Outside Completion Date, Tenant may elect to terminate this Lease
with respect to the Expansion One Space only by notice to Landlord given on or
prior to November 18, 2002 and (ii) if the Expansion Two Commencement Date
shall not have occurred on or prior to March 1, 2003 and such failure to
deliver is not attributable to the unreasonable acts or omissions of Tenant or
any Unavoidable Delay, for the period from March 1, 2003 through and including
the date that (x) is one (1) day prior to the Expansion Two Commencement Date
or (y) the Expansion Termination Date if Tenant shall terminate this Lease with
respect to the Expansion Two Space (the “Credit Period”), Tenant shall
receive as a credit against the Fixed Rent due and payable under this Lease a
sum equal to the Expansion Two Daily Rent multiplied by the number of calendar
days in the Credit Period, and (iii) if the Expansion Two Commencement Date
shall not have occurred on or prior to May 1, 2003, in addition to any credits
accruing as set forth in the preceding item (i), Tenant may elect to terminate
this Lease with respect to (1) the Expansion Two Space only or (2) the
Expansion One Space and the Expansion Two Space by notice to Landlord given on
or prior to July 22, 2003 (but in no event shall Tenant have the right to
terminate this Lease pursuant to this sentence with respect to the Expansion
One Space unless Tenant shall also terminate this Lease with respect to the
Expansion Two Space).

 

(B) If Tenant shall terminate this Lease in a timely
fashion as set forth in Section 22.2(A) above with respect to the Expansion One
Space and/or the Expansion Two Space, then, as of the date that is ten (10)
days after Landlord’s receipt of such notice (each, an “Expansion
Termination Date”) (a) this Lease shall terminate with respect to the
Expansion One Space 

 

10

 

and/or
the Expansion Two Space only, as applicable, (b) neither Landlord nor Tenant
shall have any further rights or obligations hereunder with respect to the
Expansion One Space and/or the Expansion Two Space, as applicable, except those
that expressly survive such termination, and (c) any and all credit against the
Fixed Rent which shall have theretofore accrued in connection with the space
thereby terminated shall be deemed null and void, and Tenant shall not be
entitled to any such credit or any compensation in substitution therefore;
provided however, that Landlord shall reimburse Tenant for any rent or other
amounts paid by Tenant to Landlord applicable to the period subsequent to the
effective date of such termination. In addition to the foregoing, in the event
that Tenant shall exercise its right to terminate this Lease with respect to
the Expansion One Space and/or the Expansion Two Space in accordance with
Section 22.2(A) above, Landlord and Tenant agree to reasonably cooperate in
order to demise the Expansion One Space from the Expansion Two Space and to
separate the Building Systems serving the Expansion One Space and the Expansion
Two Space on a timely basis at Landlord’s expense. In addition to the
foregoing, (i) if Tenant shall terminate this Lease with respect to the
Expansion One Space in accordance with Section 22.2(A) above, Tenant shall
thereafter have no right to receive from Landlord and Landlord shall have no
obligation to deliver to Tenant the Expansion Two Space, the Fixed Rent
increases pursuant to Section 39.2(A) shall be of no further force or effect,
and all rights and obligations hereunder with respect to the Expansion Two
Space shall thereupon terminate and be of no further force or effect and (ii)
if Tenant shall terminate this Lease with respect to the Expansion Two Space in
accordance with Section 22.2(A) above, the Fixed Rent increases pursuant to
Section 39.2(B) hereof shall be of no further force or effect.

 

7.                                      Amendments to Article 27.

 

Section 27.1(D) is hereby amended by adding the
following sentence after the existing sentence: “The term “Base Taxes” with respect
to (i) the Expansion One Space only shall mean the Taxes for the Tax Year
commencing July 1, 2002 and ending June 30, 2003 and (ii) the Expansion Two
Space only shall mean (1) one-half of the Taxes for the Tax Year commencing
July 1, 2002 and ending June 30, 2003 plus (2) one-half of the Taxes for
the Tax Year commencing July 1, 2003 and ending June 30, 2004.”

 

8.                                      Amendments to Article 28.

 

The first sentence of Section 28.8 is hereby amended
by deleting the words “thirty-seven and one-half (37.5) and by inserting
therefor the words “fifty-one and one-half (51.5)”.

 

9.                                      Amendments to Article 35.

 

A new Section 35.1(C) is hereby inserted after the
existing Section 35.1(B) as follows:

 

In addition to the terms set forth in the foregoing
Section 35.1(B), Landlord shall indemnify and save Tenant, its shareholders,
directors, officers, Partners, employees and agents harmless from and against
all claims against Tenant arising from any damage to the Premises, any personal
property located therein (including, but not limited to, any equipment located
in the Expansion One Equipment Closet), and any bodily injury to Tenant’s
employees, agents, contractors, licensees, visitors or invitees resulting from
the acts, omissions or negligence of Licensee or Landlord or their respective
contractors, licensees, agents, servants, employees, invitees or 

 

11

 

visitors arising out of or in connection with
Licensee’s or Landlord’s access to or use of the Premises, the Expansion One
Equipment Closet or the location of Licensee’s Equipment therein. This
indemnity and hold harmless agreement shall include indemnity from and against
any and all liability, fines, suits, demands, costs and expenses of any kind or
nature (including, without limitation, reasonable attorneys’ fees and
disbursements) incurred in or in connection with any such claim or proceeding
brought thereon. Landlord shall have no liability for any consequential damages
suffered either by Tenant or by any party claiming through Tenant. The
provisions of this Section 35.1(C) shall survive the expiration or earlier
termination of the Lease.

 

10.                               Insertion of Article 39.

 

A new Article 39 is hereby added to the Lease as
follows:

 

ARTICLE 39

EXPANSION SPACE

 

Section
39.1                                Provided
in each case that (i) no Event of Default then exists and (ii) the Expiration
Date has not occurred (1) Expansion One Space shall be added to and become a
part of the Premises for all purposes under this Lease on the Expansion One
Commencement Date as determined in accordance with Section 1.1 hereof, and the
definition of “Premises” shall be modified thereupon to include such Expansion
One Space, and (2) the Expansion Two Space shall be added to and become a part
of the Premises for all purposes under this Lease on the Expansion Two
Commencement Date as determined in accordance with Section 1.1 hereof, and the
definition of “Premises” shall be modified thereupon to include such Expansion
Two Space.

 

Section
39.2                                (A)  Effective as of the Expansion One Commencement
Date, the Fixed Rent shall be increased by the amounts set forth below to
reflect the addition of the Expansion One Space to the Premises:

 

1.                                       for the Expansion One Space
First Rental Period, an amount equal to Five Hundred Eighty-Seven Thousand Six
Hundred Eighty-Seven and 50/100 Dollars ($587,687.50); and

 

2.                                       for the Expansion One Space
Second Rental Period, an amount equal to Six Hundred Thirty-Four Thousand Seven
Hundred Two and 50/100 Dollars ($634,702.50); and

 

3.                                       for the Expansion One Space Third
Rental Period, an amount equal to Six Hundred Eighty-One Thousand Seven Hundred
Seventeen and 50/100 Dollars ($681,717.50).

 

(B)                                Effective
as of the Expansion Two Commencement Date, the Fixed Rent shall be increased by
the amounts set forth below to reflect the addition of the Expansion Two Space
to the Premises:

 

1.                                       for the Expansion Two Space
Second Rental Period, an amount equal to Five Hundred Fourteen Thousand One
Hundred Twenty-Five and 00/100 Dollars ($514,125.00); and

 

12

 

2.                                       for the Expansion Two Space
Second Rental Period, an amount equal to Five Hundred Fifty-Five Thousand Two
Hundred Fifty-Five and 00/100 Dollars ($555,255.00); and

 

3.                                       for the Expansion Two Space
Third Rental Period, an amount equal to Five Hundred Ninety-Six Thousand Three
Hundred Eighty-Five and 00/100 Dollars ($596,385.00).

 

(C)                                Effective
as of (i) the Expansion One Commencement Date (1) the “Tenant’s Share” shall be
increased by 0.587% and (2) the “Space Factor” shall be increased by nine
thousand four hundred three (9,403) and (ii) the Expansion Two Commencement
Date (1) the “Tenant’s Share” shall be increased by 0.513% and (b) the “Space
Factor” shall be increased by eight thousand two hundred twenty-six (8,226).
The increases set forth in item (ii) in the preceding sentence shall be in
addition to those increases set forth in item (i).

 

11.                               Amendments to Exhibits.

 

(a)                                  Exhibit “G” attached hereto is
hereby attached to and made a part of the Lease following the existing Exhibit
“F”.

 

(b)                                 Exhibit “H” attached hereto is
hereby attached to and made a part of the Lease following such Exhibit “G”.

 

(c)                                  Exhibit “I” attached hereto is
hereby attached to and made a part of the Lease following such Exhibit “H”.

 

(d)                                 Exhibit “J” attached hereto is
hereby attached to and made a part of the Lease following such Exhibit “I”.

 

(e)                                  Exhibit “K” attached hereto is
hereby attached to and made a part of the Lease following such Exhibit “J”.

 

(f)                                    Exhibit “L” attached hereto is
hereby attached to and made a part of the Lease following such Exhibit “K”.

 

(g)                                 Exhibit
“M” attached hereto is hereby attached to and made a part of the Lease
following such Exhibit “L”.

 

(h)                                 Exhibit
“N” attached hereto is hereby attached to and made a part of the Lease following
such Exhibit “M”.

 

(i)                                     Exhibit
“O” attached hereto is hereby attached to and made a part of the Lease
following such Exhibit “N”.

 

(j)                                     Exhibit
“P” attached hereto is hereby attached to and made a part of the Lease
following such Exhibit “O”.

 

13

 

12.                               Brokerage.

 

Each party represents and warrants that it has not
dealt with any broker, finder or like agent in connection with this Amendment
other than Insignia/ESG, Inc. (the “Broker”), and Tenant agrees to
indemnify and hold Landlord harmless of and from any and all loss, costs,
damage, liability or expense (including, without limitation, attorneys’ fees
and disbursements) incurred by reason of any claim of or liability to any
broker, finder or like agent, other than Broker, who shall claim to have dealt
with Tenant in connection with this Amendment. Landlord agrees to indemnify and
hold Tenant harmless of and from any and all loss, costs, damage, liability or
expense (including, without limitation, attorneys’ fees and disbursements)
incurred by reason of any claim of or liability to any broker, finder or like
agent, including Broker, who shall claim to have dealt with Landlord in
connection with this Amendment. Landlord shall pay Broker any commission, fee
or compensation due in connection with this Lease pursuant to a separate
written agreement. The provisions of this Article shall survive the expiration
or earlier termination of the Lease or this Amendment.

 

13.                               Miscellaneous.

 

(a)                                  Terms Binding. The terms, covenants and
conditions contained in this Amendment shall bind and inure to the benefit of
parties hereto and their respective permitted successors and assigns.

 

(b)                                 Full Force and Effect. As amended by this Amendment,
all of the terms, covenants and conditions of the Lease are hereby ratified and
confirmed and shall continue to be and remain in full force and effect
throughout the remainder of the term thereof.

 

(c)                                  Counterparts. This Amendment may be executed
in counterparts, each of which when read together shall be deemed one and the
same instrument.

 

(d)                                 Governing Law. This Amendment shall be
governed in all respects by the laws of the State of New York.

 

14

 

IN
WITNESS WHEREOF, the undersigned have respectively executed this Amendment as
of the date first above written.

 

	
   

  	
  Landlord

  
	
   

  	
   

  
	
   

  	
  THE
  EQUITABLE LIFE ASSURANCE

  SOCIETY OF THE UNITED STATES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ELAS SECURITIES ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tenant

  
	
   

  	
   

  	
   

  
	
   

  	
  KEEFE, BRUYETTE & WOODS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
					

 

15Exhibit 10.7

 

SECOND AMENDMENT
OF LEASE

 

THIS
SECOND AMENDMENT OF LEASE (this “Amendment”, and sometimes referred to
herein as the “Second Amendment”) made as of the 10th day of October, 2003 between THE EQUITABLE
LIFE ASSURANCE SOCIETY OF THE UNITED STATES and ELAS SECURITIES ACQUISITION
CORP., each having an office at 1290 Avenue of the Americas, New York, New York
10104 (collectively, “Landlord”), as landlord, and KEEFE, BRUYETTE &
WOODS, INC., having an office at 787 Seventh Avenue, New York, New York 10019
(collectively, “Tenant”), as tenant.

 

W  I  T
N  E  S  S  E  T  H

 

WHEREAS,
pursuant to that certain Agreement of Lease, dated as of November 12, 2001 (the
“Original Lease”), as amended by that certain First Amendment of Lease,
dated as of September 6, 2002 (the “First Amendment”, and together with
the Original Lease, the “Lease”), Landlord leased to Tenant, and Tenant
hired from Landlord, certain premises, consisting of the entire fourth (4th) floor and a portion of the
sixth (6th) floor (each as
more particularly described in the Lease), in the building known as 787 Seventh
Avenue, New York, New York (the “Building”); and

 

WHEREAS,
Landlord and Tenant desire to amend certain terms of the Lease and to add
certain provisions thereto to provide for (i) the leasing by Tenant of the
entire fifth (5th)
floor of the Building, (ii) certain agreements between Landlord and Tenant
relating to such space, and (iii) certain other matters, all as hereinafter
provided.

 

NOW
THEREFORE, in consideration of the sum of Ten Dollars ($10.00) paid by Tenant
to Landlord and for other good and valuable consideration, the mutual receipt
and legal sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

1.                                      Amendments to Definitions.

 

(a)                                  Unless otherwise stated herein,
all capitalized terms used in this Amendment shall have the meanings specified
in the Lease.

 

(b)                                 The defined terms hereinafter
set forth are restated as follows:

 

“Premises” shall mean, subject to the
provisions of Section 4.3 hereof, all of the rentable area of the
fourth (4th) floor
(the “Initial Premises”) and that portion of the sixth (6th) floor of the Building as indicated by
hatching on Exhibit ”G” and Exhibit ”L” to the First
Amendment, and shall also include the Expansion Three Space as of the Expansion
Three Commencement Date. The entire fourth (4th) floor and the portion of the sixth (6th) floor are hereinafter sometimes
referred to as the “Expanded Premises”.

 

“Tenant’s Share” shall mean as of (i) the
Expansion One Commencement Date, three and eight hundred four one-thousandths
percent (3.804%), (ii) the Expansion Two Commencement Date, four and three
hundred seventeen one-thousandths percent (4.317%), and (iii) the Expansion
Three Commencement Date, seven and five hundred twenty-six one-thousandths
percent (7.526%), as the same may be increased or decreased pursuant to the
terms 

 

 

hereof.
Landlord and Tenant hereby expressly acknowledge and agree that the percentage
set forth in this Lease as the Tenant’s Share for the Premises is the percentage
as agreed to by Landlord and Tenant and shall not, except as otherwise herein
provided, be subject to change for any reason, including, without limitation, a
redetermination of the measurement of the rentable area of the Building or the
Premises, except that such percentages will be subject to change by reason of
any alteration or improvement being performed to the Building which increases
or decreases the rentable area of the Building.

 

(c)                                  The defined terms hereinafter
set forth are hereby inserted in the “DEFINITIONS” Section of the Lease in the
appropriate alphabetical location:

 

“Anticipated
Option Floor(s) Commencement Date” shall have the meaning set forth in Section
41.1(A) hereof.

 

“BNP”
shall have the meaning set forth in Section 41.1(B) hereof.

 

“Debt
Rating” shall mean, as of any date, the lowest rating that has been most
recently assigned by either S&P or Moody’s, as the case may be, to the
long-term senior unsecured non-credit enhanced debt of a Person or, if applicable, to the “implied rating”
of such Person’s long-term senior unsecured credit enhanced debt. For
purposes of the foregoing, (a) if only one of S&P and Moody’s shall
have in effect a Person’s Debt Rating, such Person’s Debt Rating shall be
determined by reference to the available rating; (b) if the ratings
established by S&P and Moody’s shall fall within different levels, the
rating applicable to the Eligible Assignee shall be based upon (i) the lower
rating, in the event such ratings are no more than one level apart or (ii) the
average of the two ratings, in the event such ratings are more than one level
apart; (c) if any rating established by S&P or Moody’s shall be
changed, such change shall be effective as of the date on which such change is
first announced publicly by the rating agency making such change; and
(d) if S&P or Moody’s shall change the basis on which ratings are
established, each reference to the Person’s Debt Rating announced by S&P or
Moody’s, as the case may be, shall refer to the then equivalent rating by
S&P or Moody’s, as the case may be.

 

“Eligible Assignee”
shall mean any Person (a) approved by Landlord as an assignee hereunder
pursuant to the provisions of Article 12 and (b) (i) if such Person
has a Debt Rating, that has a Debt Rating as of any date greater than or equal
to (A) BBB, if assigned by S&P and (B) Baa2, if assigned by Moody’s
or (ii) if such Person does not have a Debt Rating, that has the financial
wherewithal substantially equivalent to the financial wherewithal of a Person
with a Debt Rating satisfying the criteria specified in clause (i) above (which
determination shall be in Landlord’s reasonable discretion).

 

“Expanded
Premises” shall have the meaning set forth in the definition of “Premises”
above.

 

“Expansion Three Commencement Date” shall mean
October 10, 2003.

 

“Expansion Three First Rental Period” shall
mean the period commencing on the Expansion Three Commencement Date and ending
on February 28, 2008.

 

2

 

“Expansion Three Included Personal Property”
shall have the meaning set forth in Section 1.1 hereof.

 

“Expansion Three Second Rental Period” shall
mean the five-year period commencing on the day immediately succeeding the
expiration of the Expansion Three First Rental Period and ending on the
five-year anniversary of the expiration date of the Expansion Three First
Rental Period.

 

“Expansion Three Space” shall mean, subject to
the provisions of Section 4.3 hereof, the rentable area of the entire
fifth (5th) floor
of the Building as indicated by hatching on Exhibit “Q” attached hereto
and made a part hereof.

 

“Expansion Three Third Rental Period” shall
mean the period commencing on the day immediately succeeding the expiration of
the Expansion Three Second Rental Period and ending on the Fixed Expiration
Date.

 

“Fair
Market Rent” shall have the meaning set forth in Section 40.3(A)
hereof.

 

“Included Personal Property” shall have the
meaning set forth in Section 1.1 hereof.

 

“Initial Included Personal Property” shall have
the meaning set forth in Section 1.1 hereof.

 

“Initial
Premises” shall have the meaning set forth in the definition of “Premises”
above.

 

“Landlord’s
Appraiser” shall have the meaning set forth in Section 40.3(B)
hereof.

 

“Landlord’s
Determination” shall have the meaning set forth in Section 40.3(B)
hereof.

 

“Moody’s”
means Moody’s Investors Services, Inc. and any successor thereto.

 

“Mutual
Determination” shall have the meaning set forth in Section 40.3(B)
hereof.

 

“Option
Floor Notice” shall have the meaning set forth in Section 41.1(A)
hereof.

 

“Option
Floor(s)” shall have the meaning set forth in Section 41.1(A)
hereof.

 

“Option
Floor(s) Commencement Date” shall have the meaning set forth in Section
41.1(A) hereof.

 

“Option
Floor(s) Expiration Date” shall have the meaning set forth in Section
41.1(A) hereof.

 

3

 

“Option
Floor(s) Rental Period” shall have the meaning set forth in Section
41.1(A) hereof.

 

“Renewal
Notice” shall have the meaning set forth in Section 40.1(A) hereof.

 

“Renewal
Option” shall have the meaning set forth in Section 40.1(A) hereof.

 

“Renewal
Term” shall have the meaning set forth in Section 40.1(A) hereof.

 

“Rent
Notice” shall have the meaning set forth in Section 40.3(B) hereof.

 

“S&P”
means Standard & Poor’s Ratings Group, a division of The McGraw-Hill
Companies, Inc. and any successor thereto.

 

“Sixth
Floor Space” shall have the meaning set forth in Section 41.1(B)
hereof.

 

“Tenant’s
Appraiser” shall have the meaning set forth in Section 40.3(B) hereof.

 

“Tenant’s
Determination” shall have the meaning set forth in Section 40.3(B)
hereof.

 

“Tenant’s
Notice” shall have the meaning set forth in Section 40.3(B) hereof.

 

“Tenant’s
Option Floor Notice” shall have the meaning set forth in Section 41.1(A)
hereof.

 

“Third
Appraiser” shall have the meaning set forth in Section 40.3(B)
hereof.

 

“Third
Floor Space” shall have the meaning set forth in Section 41.1(B)
hereof.

 

2.                                      Amendments to Article 1.

 

(a)                                  The third through fifth
sentences of Section 1.1 are hereby deleted in their entirety and the
following sentences are hereby inserted in substitution therefor:

 

“Tenant hereby agrees to accept (i) possession of the
Initial Premises in its ‘as is’ condition on the Commencement Date, (ii)
possession of the Expansion One Space in its ‘as is’ condition on the Expansion
One Commencement Date, (iii) possession of the Expansion Two Space in its ‘as
is’ condition as of the date of the First Amendment on the Expansion Two
Commencement Date, and (iv) possession of the Expansion Three Space in its ‘as
is’ condition on the Expansion Three Commencement Date, in each case,
unoccupied and free of any leases or tenancies and vacant of personal property,
except for (w) in the case of the Initial Premises, those items of personal property
set forth on Exhibit ‘E’ attached hereto and made a part
hereof (the ‘Initial Included Personal Property’), (x) in the case of
the Expansion One Space, those items of personal property set forth on Exhibit ‘H’
attached hereto and made a part hereof (the ‘Expansion One Included Personal
Property’), (y) in the case of the Expansion Two Space, those items of
personal property set forth on Exhibit ‘M’ attached hereto and
made a part hereof (the ‘Expansion Two Included Personal Property’), and
(z) in the case of the Expansion Three Space, those items of personal property
set forth on Exhibit ‘R’ attached hereto and made a part hereof 

 

4

 

(the ‘Expansion
Three Included Personal Property’, and together with the Initial Included
Personal Property, the Expansion One Included Personal Property and the
Expansion Two Included Personal Property”, the ‘Included Personal Property’);
provided, however, that (i) prior to the Commencement Date
Landlord shall install a fire-rated partition in the previously-existing
doorway accessing the internal stairs located between the fourth (4th) and fifth (5th) floors of the Building (the ‘Fourth
Floor Internal Stairs’) at Landlord’s sole cost and expense in accordance
with applicable Requirements (‘Landlord’s Work’), (ii) not later than
October 28, 2002 (the ‘Outside Completion Date’), Landlord shall
complete the work described on Exhibit ‘I’ attached hereto and
made a part hereof at Landlord’s sole cost and expense in accordance with
applicable Requirements (‘Landlord’s Expansion One Work’), and (iii) not
later than the Expansion Two Commencement Date, Landlord shall complete the
work described on Exhibit ‘N’ attached hereto and made a part
hereof at Landlord’s sole cost and expense in accordance with applicable
Requirements (‘Landlord’s Expansion Two Work’). Landlord agrees that (y)
subject to the completion of Landlord’s Expansion One Work and Landlord’s
Expansion Two Work, the ‘as is’ condition in which the Expansion One Space and the
Expansion Two Space shall be delivered to Tenant shall be materially similar to
the ‘as is’ condition of such Expansion One Space and such Expansion Two Space
as of the date of the First Amendment and (z) the ‘as is’ condition in which
the Expansion Three Space shall be delivered to Tenant shall be materially
similar to the ‘as is’ condition of such Expansion Three Space as of the date
of the Second Amendment. Landlord agrees that, notwithstanding the foregoing,
on (i) the Commencement Date the Initial Premises shall be in compliance with
all Requirements, (ii) the Completion Date, the Expansion One Space shall be in
compliance with all Requirements, (iii) the Expansion Two Commencement Date,
the Expansion Two Space shall be in compliance with all Requirements, and (iv)
the Expansion Three Commencement Date, the Expansion Three Space shall be in
compliance with all Requirements, except to the extent in each case the non-compliance
therewith (i) would not adversely affect Tenant’s ability to perform any
Initial Alterations and (ii) would otherwise be cured by the performance
of the Initial Alterations, including, without limitation, any Initial
Alteration consisting of or including any demolition of any portion of the
Premises. Tenant acknowledges that Landlord has performed the Expansion One
Work and the Expansion Two Work.”

 

(b)                                 The eleventh through fourteenth
sentences of Section 1.1 are hereby deleted in their entirety and the
following sentences are hereby inserted in substitution therefor:

 

“Tenant will accept (i) the Initial Included Personal
Property as of the Commencement Date, (ii) the Expansion One Included Personal
Property as of the Expansion One Commencement Date, (iii) the Expansion Two
Included Personal Property as of the Expansion Two Commencement Date, and (iv)
the Expansion Three Included Personal Property as of the Expansion Three
Commencement Date, in each case in their ‘as-is’ and ‘where-is’ condition, and
acknowledges that Landlord has not made any representations or warranties as to
the condition or fitness of the Included Personal Property for use. The
Included Personal Property shall be leased to Tenant in accordance with all of
the terms and conditions of this Lease throughout the Term but shall remain the
property of Landlord for all purposes and shall be returned to Landlord on the
Expiration Date in its ‘as-is’ condition as of the Expiration Date, subject,
nevertheless, to the performance by Tenant of its obligations pursuant to the
provisions of this Lease. Notwithstanding the foregoing, Tenant shall have the
right from time to time during the Term to deliver notice to Landlord
indicating that Tenant no longer desires to lease 

 

5

 

any item of the
Included Personal Property, and within five (5) Business Days of receipt of
such notice, Landlord shall in its sole discretion elect to (x) accept the
return of such Included Personal Property in its ‘as-is’ condition or (y)
decline the return of such Included Personal Property, in which event Tenant
may in its discretion and at its sole cost and expense dispose of such Included
Personal Property without liability or cost to Landlord. If Landlord shall fail
to deliver the notice of its election of either item (x) or (y)
in accordance with the foregoing sentence, Landlord shall be deemed to have
elected to decline the return of such Included Personal Property pursuant to
such item (y).”

 

(c)                                  New Section 1.2(g) is
hereby inserted after the existing Section 1.2(f) as follows:

 

“Section
1.2(g). If the Expansion Three Commencement Date shall occur on a date
other than the first (1st) day of any calendar month, on the
Expansion Three Commencement Date Tenant shall pay to Landlord an amount equal
to the product of Eight Thousand Four Hundred Fifty One and 62/100 Dollars
($8,451.62) multiplied by the number of calendar days in the period from the
Expansion Three Commencement Date to the last day of the month in which the
Expansion Three Commencement Date shall occur, both dates inclusive.”

 

3.                                      Amendments to Article 3.

 

Section
3.6(A) is hereby amended by adding the following sentence
after the last sentence thereof:

 

“On or
prior to the Expansion Three Commencement Date, Landlord shall deliver to
Tenant an ACP-5 certificate for the Expansion Three Space.”

 

4.                                      Amendments to Article 27.

 

(a)                                  Section 27.1(C) is hereby amended by adding the
following sentence at the end thereof:

 

“Notwithstanding
the foregoing, ‘Base Operating Year’ shall mean with respect to the Expansion
Three Space only, the calendar year ending December 31, 2003.”

 

(b)                                 Section 27.1(D) is hereby amended by deleting
the second sentence and adding the following sentence at the end thereof:

 

“Notwithstanding the foregoing, ‘Base Taxes’ shall
mean with respect to (i) the Expansion One Space only, Taxes for the Tax Year
commencing July 1, 2002 and ending June 30, 2003 (ii) the Expansion Two Space
only, (1) one-half of the Taxes for the Tax Year commencing July 1, 2002 and
ending June 30, 2003 plus (2) one-half of the Taxes for the Tax Year
commencing July 1, 2003 and ending June 30, 2004, and (iii) the Expansion Three
Space only, (1) one-half of the Taxes for the Tax Year commencing July 1, 2002
and ending June 30, 2003 plus (2) one-half of the Taxes for the Tax Year
commencing July 1, 2003 and ending June 30, 2004.”

 

6

 

5.                                      Amendments to Article 28.

 

The first sentence of Section 28.8 is hereby
amended by deleting the words “fifty-one and one-half (51.5)” and by inserting
therefor the words “one hundred one and one-half (101.5)”.

 

6.                                      Amendments to Article 39.

 

The existing Article 39 is hereby deleted in its
entirety and the following Article 39 is hereby inserted therefor:

 

“ARTICLE 39

EXPANSION THREE SPACE

 

Section
39.1                                Provided
in each case that (i) no Event of Default then exists and (ii) the Expiration
Date has not occurred (1) Expansion One Space shall be added to and become a
part of the Premises for all purposes under this Lease on the Expansion One
Commencement Date as determined in accordance with Section 1.1 hereof,
and the definition of ¢Premises’ shall be
modified thereupon to include such Expansion One Space, (2) the Expansion Two
Space shall be added to and become a part of the Premises for all purposes
under this Lease on the Expansion Two Commencement Date as determined in
accordance with Section 1.1 hereof, and the definition of ¢Premises’
shall be modified thereupon to include such Expansion Two Space, and (3) the
Expansion Three Space shall be added to and become a part of the Premises for
all purposes under this Lease on the Expansion Three Commencement Date as
determined in accordance with Section 1.1 hereof, and the definition of ¢Premises’
shall be modified thereupon to include such Expansion Three Space.

 

(A)                              Effective
as of the Expansion One Commencement Date, the Fixed Rent shall be increased by
the amounts set forth below to reflect the addition of the Expansion One Space
to the Premises:

 

1.                                       for the Expansion One Space
First Rental Period, an amount equal to Five Hundred Eighty-Seven Thousand Six
Hundred Eighty-Seven and 50/100 Dollars ($587,687.50); and

 

2.                                       for the Expansion One Space
Second Rental Period, an amount equal to Six Hundred Thirty-Four Thousand Seven
Hundred Two and 50/100 Dollars ($634,702.50); and

 

3.                                       for the Expansion One Space
Third Rental Period, an amount equal to Six Hundred Eighty-One Thousand Seven
Hundred Seventeen and 50/100 Dollars ($681,717.50).

 

(B)                                Effective
as of the Expansion Two Commencement Date, the Fixed Rent shall be increased by
the amounts set forth below to reflect the addition of the Expansion Two Space
to the Premises:

 

7

 

1.                                       for the Expansion Two Space
First Rental Period, an amount equal to Five Hundred Fourteen Thousand One
Hundred Twenty-Five and 00/100 Dollars ($514,125.00); and

 

2.                                       for the Expansion Two Space
Second Rental Period, an amount equal to Five Hundred Fifty-Five Thousand Two
Hundred Fifty-Five and 00/100 Dollars ($555,255.00); and

 

3.                                       for the Expansion Two Space
Third Rental Period, an amount equal to Five Hundred Ninety-Six Thousand Three
Hundred Eighty-Five and 00/100 Dollars ($596,385.00).

 

(C)                                Effective
as of the Expansion Three Commencement Date, the Fixed Rent shall be increased
by the amounts set forth below to reflect the addition of the Expansion Three
Space to the Premises:

 

1.                                       for the Expansion Three First
Rental Period, an amount equal to Three Million Eighty-Four Thousand Eight
Hundred Forty and 00/100 Dollars ($3,084,840.00); and

 

2.                                       for the Expansion Three Second
Rental Period, an amount equal to Three Million One Hundred Eighty-Seven
Thousand Six Hundred Sixty-Eight and 00/100 Dollars ($3,187,668.00); and

 

3.                                       for the Expansion Three Third
Rental Period, an amount equal to Three Million Four Hundred Forty-Four
Thousand Seven Hundred Thirty-Eight and 00/100 Dollars ($3,444,738.00).

 

(C)                                Effective
as of (i) the Expansion One Commencement Date (1) the ¢Tenant’s
Share’ shall be increased by 0.587% and (2) the ¢Space
Factor’ shall be increased by nine thousand four hundred three (9,403), (ii)
the Expansion Two Commencement Date (1) the ¢Tenant’s
Share’ shall be increased by 0.513% and (b) the ¢Space
Factor’ shall be increased by eight thousand two hundred twenty-six (8,226) and
(iii) the Expansion Three Commencement Date (1) the ¢Tenant’s
Share” shall be increased by 3.209% and (b) the ¢Space
Factor’ shall be increased by fifty one thousand four hundred fourteen (51,414).
The increases set forth in item (iii) in the preceding sentence shall be in
addition to those increases set forth in items (i) and (ii).”

 

7.                                      Insertion of Article 40.

 

A new Article 40 is hereby added to the Lease as
follows:

 

“ARTICLE 40

RENEWAL

 

Section
40.1                                (A)
So long as Tenant Named Herein or any Eligible Assignee shall be Tenant
hereunder, Tenant shall have the option (the ‘Renewal Option’) to extend
the Term of this Lease for one (1) additional period of five (5) years, which
Renewal Term shall 

 

8

 

commence
on the date immediately succeeding the Fixed Expiration Date and end on the
fifth (5th)
anniversary of the Fixed Expiration Date (the ‘Renewal Term’); provided
that (a) this Lease shall not have been previously terminated, (b) Tenant shall
not be subleasing more than twenty percent (20%) of the Premises to
non-Affiliates of Tenant on the date of delivery of a Renewal Notice, and (c)
no Event of Default shall have occurred and be continuing on the date of
delivery of a Renewal Notice and on the Fixed Expiration Date. The Renewal
Option shall be exercised by Tenant by the delivery to Landlord of written
notice (the ‘Renewal Notice’) thereof at least eighteen (18) months
prior to the Fixed Expiration Date and may be exercised with respect to the
entire Premises only. Time is of the essence with respect to the giving of the
Renewal Notice.

 

(B)                                Notwithstanding
anything to the contrary set forth herein, Tenant shall have no right or option
to extend or renew the Term for any portion of the Premises as to which
Landlord shall have exercised its right of recapture or termination pursuant to
Section 12.6(B) hereof.

 

Section
40.2                                If
Tenant exercises its Renewal Option, the Renewal Term shall be upon the same
terms, covenants and conditions as those contained in this Lease, except that
(i) the Fixed Rent applicable thereto shall be as determined pursuant to the
provisions of Section 40.3 below and (ii) there shall be no further
renewal right permitted hereunder.

 

Section
40.3                                The
Fixed Rent for the Renewal Term shall be determined as follows:

 

(A)                              The Fixed Rent for the Premises
for the Renewal Term shall be an amount equal to the annual fair market rental
value of the Premises (the ‘Fair Market Rent’) on the first day thereof.
The Fair Market Rent shall be determined as if the Premises were available in
the prevailing rental market for comparable first class market buildings in
midtown Manhattan prior to the first day of the Renewal Term, assuming that
Landlord has had a reasonable time to locate a tenant who rents with the
knowledge of the uses to which the Premises can be adapted, and that neither
Landlord nor the prospective tenant is under any compulsion to rent, and taking
into account all relevant factors applicable to the leasing of the Premises,
including, without limitation, the fact that the Base Taxes and the Base
Operating Expenses provided herein shall change for the purpose of calculating
the escalation payments payable pursuant to Article 27 hereof, which
payments shall continue to be made during the Renewal Term with the Base Taxes
to be the Taxes for the Tax Year in which the Renewal Term commences and the
Base Operating Year to be the Operating Year in which the Renewal Term
commences; Tenant shall not be entitled to any concessions or free rent
periods, any abatement of Fixed Rent or any other item of Rental or any
allowance or contribution during the Renewal Term and Landlord shall not be
required to perform any work in the Premises prior to the commencement of, or
during, the Renewal Term.

 

(B)                                For purposes of determining the
Fair Market Rent, the following procedure shall apply:

 

(1)                                  the Fair Market Rent
shall be determined by Landlord on the basis of the highest and best use as
offices and assuming that the Premises are free and 

 

9

 

clear of all
leases and tenancies (including this Lease), and that the Premises are occupied
by one (1) tenant.

 

(2)                                  Landlord shall give
Tenant written notice (a) not later than one hundred twenty (120) days prior to
the Fixed Expiration Date (the ‘Rent Notice’), which Rent Notice shall
set forth Landlord’s determination of the Fair Market Rent (‘Landlord’s
Determination’). If Landlord shall fail or refuse to give such notice as
aforesaid, the Fair Market Rent shall be deemed to be the Fixed Rent payable by
Tenant on the Expiration Date. If Tenant disputes the Fixed Rent as the current
Fair Market Rent, Tenant shall so notify Landlord by written notice pursuant to
clause (3) below, and if within twenty (20) days after Landlord’s receipt of
Tenant’s Notice Landlord and Tenant shall be unable to agree on the Fair Market
Rent, Landlord and Tenant each shall appoint an independent real estate
appraiser and proceed pursuant to clause (4) below.

 

(3)                                  Tenant shall notify
Landlord by written notice (‘Tenant’s Notice’) within thirty (30) days
after Tenant’s receipt (or deemed receipt) of the Rent Notice, of whether
Tenant accepts or disputes Landlord’s Determination, and if Tenant disputes
Landlord’s Determination, Tenant’s Notice shall set forth Tenant’s
determination of the Fair Market Rent (‘Tenant’s Determination’).

 

(4)                                  If Tenant in Tenant’s
Notice accepts Landlord’s Determination or if Tenant fails or refuses to give
Tenant’s Notice as aforesaid, Tenant shall be deemed to have accepted Landlord’s
Determination for such Renewal Term in accordance with the terms of this
Article. If Tenant in Tenant’s Notice disputes Landlord’s Determination and
within twenty (20) days after Landlord’s receipt of Tenant’s Notice Landlord
and Tenant shall be unable to agree on the Fair Market Rent, Landlord and
Tenant each shall appoint an independent real estate appraiser (respectively, ‘Landlord’s
Appraiser’ and ‘Tenant’s Appraiser’) and each of Landlord and Tenant
shall simultaneously with one another on the day after such appointment submit
to Landlord’s Appraiser and Tenant’s Appraiser, respectively, its then current
determination of the Fair Market Rent, which determinations in each instance
may be higher or lower than the determination of Fair Market Rent previously
submitted by Landlord and Tenant. If Landlord’s Appraiser and Tenant’s
Appraiser shall mutually agree upon the determination (the ‘Mutual
Determination’) of the Fair Market Rent, their determination shall be final
and binding upon the parties. If Landlord’s Appraiser and Tenant’s Appraiser shall
be unable to reach a Mutual Determination within said twenty (20) day period,
both of the Appraisers shall jointly select a third independent real estate
appraiser (‘Third Appraiser’) whose fee shall be borne equally by
Landlord and Tenant. In the event that Landlord’s Appraiser and Tenant’s
Appraiser shall be unable to jointly agree on the designation of the Third
Appraiser within five (5) days after they are requested to do so by either
party, the Third Appraiser shall be designated by the AAA in accordance with
the rules, regulations and/or procedures then obtaining of the AAA.

 

(5)                                  The Third Appraiser
shall conduct such hearings and investigations as such person may deem
appropriate and shall, within fifteen (15) days after the date of designation of
the Third Appraiser, choose either Landlord’s Determination or Tenant’s
Determination, and such choice by the Third Appraiser shall be conclusive and 

 

10

 

binding upon
Landlord and Tenant. Each party shall pay its own counsel fees and expenses, if
any, in connection with any proceeding under this Section 40, including
the expenses and fees of such party’s Appraiser, and Landlord and Tenant shall
each pay fifty percent (50%) of the fees and expenses of the Third Appraiser. Any
Appraiser appointed pursuant to this Section 40 shall be an independent
real estate appraiser with at least ten (10) years’ experience in appraisal of
properties that are similar in character to the Building, and have an office
and be doing business in the Borough of Manhattan. The Appraisers shall not
have the power to add to, modify or change any of the provisions of this Lease.

 

(C)                                After
a determination has been made of the Fair Market Rent for the Renewal Term, the
parties shall execute and deliver to each other an instrument setting forth the
Fair Market Rent as hereinabove determined but the failure to do so shall not
affect the determination as aforesaid.

 

(D)                               If
the final determination of the Fair Market Rent shall not be made on or before
the first day of the Renewal Term, then pending such final determination Tenant
shall pay, as the Fixed Rent for such Renewal Term, an amount equal to the
average of Landlord’s Determination and Tenant’s Determination. If, based upon
the final determination hereunder of the Fair Market Rent, the payments made by
Tenant on account of the Fixed Rent for such portion of the Renewal Term were
(i) less than the Fair Market Rent, Tenant shall pay to Landlord the amount of
such deficiency within thirty (30) days after demand therefor or (ii) greater
than the Fair Market Rent, Landlord promptly shall refund to Tenant the amount
of such excess.”

 

8.                                      Insertion of Article 41.

 

A new Article 41 is hereby added to the Lease as
follows:

 

“ARTICLE 41

RIGHT OF FIRST OFFER

 

Section
41.1                                (A)
If at any time during the Term, any portion of the sixth (6th) floor that is not leased by Tenant
pursuant to the terms of this Lease (the “Sixth Floor Space”) or any
portion of the third (3rd) floor (the “Third Floor
Space”; the applicable portion of the Sixth Floor Space or the Third Floor
Space that becomes available for leasing, whether consisting of the Third Floor
Space, the Sixth Floor Space, or both, or any portion of either being
hereinafter referred to as the ‘Option Floor(s)’) shall become available
for leasing, Landlord shall notify Tenant in writing (the ‘Option Floor
Notice’) of such availability, such notice to include the anticipated date
that such Option Floor(s) is scheduled to be vacant and available for delivery
to Tenant (the ¢Anticipated Option Floor(s) Commencement Date’)
and the Option Floor(s) or portion thereof which shall then be available,
provided that (1) Tenant Named Herein shall be Tenant hereunder, (2) there
shall not then be a continuing Event of Default hereunder on (y) the date
Tenant delivers the applicable Tenant’s Option Floor Notice and (z) the
date on which Landlord shall deliver to Tenant vacant possession of the
applicable Option Floor(s) or portion thereof (the ‘Option Floor(s)
Commencement Date’), and (3) Tenant or any Related Entity shall then occupy
not less than seventy-five percent (75%) of the rentable square feet in the
Premises, 

 

11

 

Tenant
shall have the one-time right with respect to each such Option Floor(s) to
directly lease each such Option Floor(s) for a term commencing on the Option
Floor(s) Commencement Date and ending on the Fixed Expiration Date (the ‘Option
Floor(s) Expiration Date’, and such period, a ‘Option Floor(s) Rental
Period’) on the terms and conditions set forth in Section 41.2 below.
Landlord shall deliver the Option Floor Notice within a reasonable period of
time after Landlord has determined that any Option Floor(s) shall be available
for leasing (which determination shall be in Landlord’s sole and absolute
discretion). Tenant shall have thirty (30) days after receipt of the Option
Floor Notice in which to notify Landlord in writing (‘Tenant’s Option Floor
Notice’) of its election to lease the applicable Option Floor(s). Time is
of the essence with respect to the giving of Tenant’s Option Floor Notice. If
Tenant shall fail to notify Landlord of such election within said period,
Tenant shall be deemed to have waived its rights under this Section 41.1
with respect to such Option Floor(s).

 

(B)                                Notwithstanding
the foregoing provisions of this Section 41.1, Tenant acknowledges that
in respect of the Third Floor Space, Landlord may at any time, in Landlord’s
sole discretion and without notice to Tenant, enter into an agreement with
Banque Paribas or its successor (‘BNP’) extending the term of any lease
or sublease then in effect between Landlord and BNP with respect to all or any
portion of the Third Floor Space or providing for the leasing by BNP of all or
any portion of the Third Floor Space; provided, however, that any
such agreement with BNP must (i) be made in good faith by Landlord, and (ii)
not have been made with the intent to deprive Tenant of any of its rights under
this Article 41 as opposed to serving to meet a business need of BNP.

 

Section
41.2                                (A)  Provided that Tenant timely delivers Tenant’s
Option Floor Notice as aforesaid, then, on the Option Floor(s) Commencement
Date:  (i) the Option Floor(s) so
leased shall be added to and be deemed part of the Premises for all purposes of
this Lease, except as set forth in this Section 41.2; (ii) the
Fixed Rent for any Option Floor(s) for the applicable Option Floor(s) Rental
Period shall be the Fair Market Rent for such Option Floor(s) (as determined
pursuant to the provisions of Section 41.2(B) below), (iii) Tenant’s
Share shall be increased to reflect the inclusion of the Option Floor(s) so
leased in the Premises; (iv) the Option Floor(s) so leased shall be delivered
to Tenant by Landlord, and Landlord shall deliver to Tenant one or more ACP-5
certificates (as reasonably required by Tenant) applicable to each floor of the
Option Floor(s) in question, and Landlord shall not be obligated to perform any
other work with respect thereto; and (v) Tenant shall not be entitled to
any concessions or free rent periods, any abatement of Fixed Rent or any other
item of Rental or any allowance or contribution with respect to Tenant’s
performance of Initial Alterations in connection with such Option Floor(s).

 

(B)                                The
Fair Market Rent for any Option Floor(s) shall be determined in accordance with
the provisions of Section 40.3 hereof, all of which shall apply mutatis
mutandis with respect thereto, except that:

 

(1)                                  as used therein, the
term ‘Fair Market Rent’ shall mean the annual fair market rental value
of the Option Floor(s) in question as of the date on which Tenant gives Tenant’s
Option Floor Notice in question;

 

(2)                                  as used therein, the
term ‘Premises’ shall mean the Option Floor(s) in question;

 

12

 

(3)                                  the Base Operating
Year shall mean the full calendar year in which occurs the Option Floor(s)
Commencement Date;

 

(4)                                  Base Taxes shall mean
the Taxes payable by Landlord for the Tax Year in which occurs the Option
Floor(s) Commencement Date; and

 

(5)                                  the Rent Notice with
respect to the Option Floor(s) shall be delivered within thirty (30) days after
Landlord’s receipt of the Tenant’s Option Floor Notice.

 

Section
41.3                                If
Landlord is unable to deliver possession of the Option Floor(s) so leased on
the Option Floor(s) Commencement Date because of the holding over or retention
of possession of any tenant, undertenant or occupant in the Option Floor(s) so
leased or otherwise, subject to compliance with the provisions of this Section
41.3, (i) Landlord shall not be subject to any liability for failure to
give possession on said date, (ii) Tenant waives the right to recover any
damages which may result from the failure of Landlord to deliver possession of
the Option Floor(s) so leased and agrees that the provisions of this Section
41.3 shall constitute an “express provision to the contrary” within the
meaning of Section 223(a) of the New York Real Property Law, (iii) the Fixed
Rent and Escalation Rent payable with respect to the Option Floor(s) so leased
shall be abated and the Option Floor(s) Commencement Date shall be postponed
until vacant possession of the Option Floor(s) so leased is, in fact, delivered
by Landlord to Tenant, and (iv) Landlord, at Landlord’s expense, shall use
commercially reasonable efforts to deliver possession of the Option Floor(s) to
Tenant, and, in connection therewith, if necessary, shall institute and
diligently and in good faith prosecute holdover and any other appropriate
proceedings against the occupant of such space. Notwithstanding anything to the
contrary contained herein, if Landlord is unable to deliver possession of the
Option Floor(s) so leased within twelve (12) months of the Option Floor(s)
Commencement Date, Tenant shall have the right to terminate this Lease with
respect to the Option Floor(s) and neither Landlord nor Tenant shall have
further obligations with respect thereto.

 

Section
41.4                                Anything
contained in this Article 41 to the contrary notwithstanding, Tenant’s
rights pursuant to this Article 41 are subject and subordinate to all
renewal rights and expansion options existing as of the date of this Lease in
favor of any existing tenant in the Building affecting all or any portion of
the Option Floor(s).”

 

9.                                      Insertion of Article 42.

 

A new Article 42 is hereby added to the Lease as
follows:

 

“ARTICLE 42

PARKING

 

Section
42.1                                Landlord
shall make available or cause to be made available to Tenant throughout the
Term four (4) parking spaces for cars in the garage of the Building. Such
spaces need not be specifically assigned or designated. For each parking space
made available to Tenant, Tenant shall pay to Landlord or the operator of the
garage, as applicable, the standard and uniform posted monthly charges in
question for each such parking space, it being understood that Landlord or the
operator of such garage may, from time to time, change the standard and 

 

13

 

uniform
monthly charges. Tenant shall pay such monthly charges in accordance with the
standard and uniformly applied procedures of the Building garage applicable
thereto from time to time in effect, and shall comply with all other rules and
regulations then in effect for the garage. If Landlord shall operate the
garage, Landlord shall not charge Tenant more for parking spaces than Landlord
is charging tenants of the Building (other than Landlord and its affiliates)
for such parking spaces. If upon Landlord making available or causing to be
made available four (4) parking spaces, Tenant shall decline to accept one (1)
or more spaces or shall accept such space(s) and shall thereafter elect to
terminate its leasing of such space(s), Landlord shall have no further
obligation to make or cause to be made available such parking space(s) to
Tenant, nor shall Tenant be entitled to lease such space(s).”

 

10.                               Amendments to Exhibits.

 

(a)                                  Exhibit “A” attached hereto is
hereby attached to and made a part of the Lease;

 

(b)                                 Exhibit “Q” attached hereto is
hereby attached to and made a part of the Lease following such Exhibit “P”; and

 

(c)                                  Exhibit “R” attached hereto is
hereby attached to and made a part of the Lease following such Exhibit “Q”.

 

11.                               Brokerage.

 

Each party represents and warrants that it has not
dealt with any broker, finder or like agent in connection with this Amendment
other than CB Richard Ellis Real Estate Services, Inc. and Cushman and
Wakefield, Inc. (collectively, the “Broker”), and Tenant agrees to
indemnify and hold Landlord harmless of and from any and all loss, costs,
damage, liability or expense (including, without limitation, attorneys’ fees
and disbursements) incurred by reason of any claim of or liability to any
broker, finder or like agent, other than Broker, who shall claim to have dealt
with Tenant in connection with this Amendment. Landlord agrees to indemnify and
hold Tenant harmless of and from any and all loss, costs, damage, liability or
expense (including, without limitation, attorneys’ fees and disbursements)
incurred by reason of any claim of or liability to any broker, finder or like
agent, including Broker, who shall claim to have dealt with Landlord in
connection with this Amendment. Landlord shall pay Broker any commission, fee
or compensation due in connection with this Lease pursuant to a separate
written agreement. The provisions of this Article shall survive the expiration
or earlier termination of the Lease or this Amendment.

 

12.                               Miscellaneous.

 

(a)                                  Terms Binding. The terms, covenants and
conditions contained in this Amendment shall bind and inure to the benefit of
parties hereto and their respective permitted successors and assigns.

 

(b)                                 Full Force and Effect. As amended by this Amendment,
all of the terms, covenants and conditions of the Lease are hereby ratified and
confirmed and shall continue to be and remain in full force and effect
throughout the remainder of the term thereof.

 

14

 

(c)                                  Counterparts. This Amendment may be executed
in counterparts, each of which when read together shall be deemed one and the
same instrument.

 

(d)                                 Governing Law. This Amendment shall be
governed in all respects by the laws of the State of New York.

 

15

 

IN WITNESS WHEREOF, the undersigned have respectively executed this
Amendment as of the date first above written.

 

	
   

  	
  Landlord

  
	
   

  	
   

  
	
   

  	
  THE
  EQUITABLE LIFE ASSURANCE

  SOCIETY OF THE UNITED STATES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas D. Carey

  	
   

  
	
   

  	
   

  	
  Name:
  Thomas D. Carey

  
	
   

  	
   

  	
  Title:
  Investment Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  ELAS
  SECURITIES ACQUISITION CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Andrew S. Bauman

  	
   

  
	
   

  	
   

  	
  Name:
  Andrew S. Bauman

  
	
   

  	
   

  	
  Title:
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Tenant

  
	
   

  	
   

  	
   

  
	
   

  	
  KEEFE,
  BRUYETTE & WOODS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  John G. Duffy

  	
   

  
	
   

  	
   

  	
  Name:
  John G. Duffy

  
	
   

  	
   

  	
  Title:
  Chairman and CEO

  

 

16

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