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Exhibit 10.4  

 
 

FULLY DISCLOSED CLEARING AGREEMENT    
    
    OF    
    
    KEEFE, BRUYETTE & WOODS, INC.    

        THIS
AGREEMENT is made and entered into this 28th day of February, 2005 by and between Fortis Securities LLC ("Fortis"), a Limited Liability Company, and Keefe,
Bruyette & Woods, Inc. ("Broker"), a New York Corporation. 

1.0    APPROVAL    

        This
Agreement shall be subject to approval by the National Association of Securities Dealers ("NASD") and the New York Stock Exchange, Inc. ("NYSE"). Fortis shall submit this
Agreement to the NASD and Broker shall submit the Agreement to the NYSE. In the event of disapproval, the parties shall bargain in good faith to achieve the requisite approval. 

2.0    AGREEMENT    

        From
the date of this Agreement until the termination of this Agreement as provided in Paragraph 22 hereof, Fortis shall carry the proprietary accounts of Broker and the cash
accounts of the customers of Broker introduced by Broker to Fortis, and accepted by Fortis (as provided in Paragraph 5.1.1), and shall clear transactions on a fully disclosed basis for such
accounts, in the manner and to the extent set forth in this Agreement. Broker acknowledges that security transactions contemplated under this Agreement will be settled by Fortis with Broker's
customers on a receive versus payment and/or delivery versus payment basis. Fortis does not intend to carry security positions or cash of Broker's customers, other than in connection with "failed"
transactions. 

3.0    ALLOCATION OF RESPONSIBILITY    

3.1    Responsibilities of the Parties.    Pursuant to NYSE Rule 382 and NASD Rule 3230, responsibility for compliance
with applicable laws, rules, and regulations of the Securities and Exchange Commission ("SEC"), the NASD, the NYSE, and any other regulatory or self-regulatory agency or organization
(collectively the "Rules") shall be allocated between Fortis and Broker as set forth in this Agreement. To the extent that a particular function is allocated to one party under this Agreement, the
other party shall supply that party with information in its possession pertinent to the performance and supervision of that function. 

3.2    Relationship with Customers.    Except as provided in Paragraph 27.11 of this Agreement, all customers receiving
services pursuant to this Agreement shall remain customers of Broker. Fortis shall provide services under this Agreement to Broker only to the extent explicitly required by specific provisions
contained in this Agreement and shall not be responsible for any duties or obligations not specifically allocated to Fortis pursuant to this Agreement. Broker shall enter into appropriate contractual
arrangements with customers on its own behalf, and such agreements shall make Broker, and not Fortis, responsible to customers for the provision of services. Broker shall not be deemed to be an agent
of Fortis for any purpose, nor shall Fortis be deemed to have a fiduciary relationship with any of Broker's customers. Broker acknowledges that Fortis does not control the business or operations of
Broker. 

4.0    REPRESENTATIONS AND WARRANTIES    

4.1    Broker.    Broker represents and warrants that: 

4.1.1    Corporation Duly Organized.    Broker is a corporation duly organized, validly existing, and in good standing under the
laws of the state of its incorporation. 

 

4.1.2    Registration.    Broker is duly registered and in good standing as a broker-dealer with the SEC. 

4.1.3    Authority to Enter Agreement.    Broker has all requisite authority, whether arising under applicable federal or state law
or the rules and regulations of any regulatory or self-regulatory organization to which Broker is subject, to enter into this Agreement and to retain the services of Fortis in accordance
with the terms of this Agreement. 

4.1.4    Material Compliance with Rules and Regulations.    Broker and each of its employees is in material compliance with, and
during the term of this Agreement shall remain in material compliance with, the registration, qualification, capital, financial reporting, customer protection, and other requirements of every
self-regulatory organization of which Broker is a member, of the SEC, and of every state to the extent that Broker or any of its employees is subject to the jurisdiction of that state. 

4.1.5    Broker Responsibility.    Broker shall be responsible for all internal operations related to its business including without
limitation (i) all accounting, bookkeeping, record-keeping, cashiering, commodity transactions, or any other transactions not involving securities; or any matter not contemplated by the
Agreement; (ii) preparation of Broker's payroll records, financial statements, or any analysis thereof; (iii) preparation or issuance of checks in payment of Broker's expenses, other
than expenses incurred by Fortis on behalf of Broker pursuant to this Agreement; and (iv) payment of commissions to Broker's sales personnel. 

4.1.6    With
respect to any transaction directed by or on behalf of Broker or Broker's customers, Broker shall be responsible for any money, securities, and documents provided by Broker or
its customers that are not (as appropriate) genuine, in good deliverable form, free of liens, charges, and unencumbered by any rights, claims or interests of any third person. 

4.1.7    Broker
shall ensure that all instructions or information Broker passes to Fortis, customers, or third parties in relation to securities transactions or services to be provided by
Fortis are complete and accurate and not misleading and are passed on promptly. 

4.1.8    Broker
shall, on a reasonably regular basis, verify the status of instructions Broker passes to Fortis on behalf of any customer of Broker and notify Fortis promptly on becoming
aware of any failure or delay on its part or the part of any customer of Broker in effecting execution or settlement (as the case may be) pursuant to any such instructions or any actual or suspected
error or fraud in or affecting the sending or receiving of any such instructions and shall use its best endeavors to assist in any steps Fortis may propose to remedy the same; 

4.2    Fortis.    Fortis represents and warrants that: 

4.2.1    Duly Organized.    Fortis is a Limited Liability Company duly organized, validly existing, and in good standing under the
laws of the state of Delaware. 

4.2.2    Registration.    Fortis is duly registered and in good standing as a broker-dealer with the SEC and is a member firm in
good standing of the NASD. 

4.2.3    Authority to Enter Agreement.    Fortis has all requisite authority, whether arising under applicable federal or state law,
or the rules and regulations of any regulatory or self-regulatory organization to which Fortis is subject, to enter into this Agreement and to provide services in accordance with the terms
of this Agreement. 

4.2.4    Compliance with Registration.    Fortis and each of its employees is in material compliance with, and during the term of
this Agreement shall remain in material compliance with the registration, qualification, capital, financial reporting, customer protection, and other requirements of every self-regulatory
organization of which Fortis is a member, of the Securities and Exchange Commission ("SEC"), and every state if required. 

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5.0    ESTABLISHING AND ACCEPTING NEW ACCOUNTS    

5.1    Acceptance of New Accounts.    Broker shall be responsible for opening, monitoring, and approving new accounts in compliance
with the Rules. 

5.1.1    Fortis
reserves the right to reasonably reject any account that the Broker may forward to Fortis as a potential new account for commercially reasonable reasons, including but not
limited to, credit and reputational considerations. Fortis also reserves the right to terminate any account previously accepted by it as a new account. Fortis must provide Broker with reasonable
notice of any such rejection or termination. 

5.2    Maintenance of Account Information.    Fortis may rely without inquiry on the validity of all customer information furnished
to it by Broker. Possession of any such documents or information, however provided, concerning Broker's customers does not create a duty on the part of Fortis to review or understand the content of
those documents. 

6.0    SUPERVISION OF ORDERS AND ACCOUNTS    

6.1    Responsibility for Compliance.    Broker shall be solely responsible for compliance with suitability, "Know Your Customer"
rules, and other requirements of federal and state law and regulatory and self-regulatory rules and regulations governing transactions and accounts. Possession by Fortis of surveillance
records, exception reports, or other similar data shall not obligate Fortis to review or be aware of their contents. Fortis shall not be required to make any investigation into the facts surrounding
any transaction that it may execute or clear for Broker or any customer of Broker. 

6.2    Compliance Procedures.    Broker agrees to supervise compliance with the Rules. Broker shall review transactions and accounts
to assure compliance with prohibitions against manipulative practices and insider trading and other requirements of federal and state law and applicable regulatory and self-regulatory
rules and regulations to which Broker or its customer are subject. Without limiting the above, Broker shall be responsible for compliance with the supervisory requirements in Section 15(b)(4)
of the Securities Exchange Act of 1934, as amended, NASD Rule 3010, NYSE Rules 342, 351 and 431, and similar rules adopted by any other regulatory or self-regulatory agency
or organization, to the extent applicable. 

6.3    Knowledge of Customer's Financial Resources and Investment Objectives.    Broker shall comply with Rule 405(1) of the
NYSE or comparable requirements of similar rules of any other regulatory or self-regulatory organization to which Broker is subject. Broker shall obtain all essential facts relating to
each customer, each cash and margin account, each order, and each person holding a power of attorney over any account, in order to assess the suitability of transactions (when required by applicable
rules), the authenticity of orders, signatures, endorsements, certificates, or other documentation, and the frequency of trading. Broker warrants that, to the best of its knowledge, Broker will not
open or maintain accounts for persons who are minors or who are otherwise legally incompetent and that Broker will comply with NYSE Rule 407 and other laws, rules, or regulations that govern
the manner and circumstances in which accounts may be opened or transactions authorized. 

6.4    Furnishing of Investment Advice.    Broker shall be solely responsible for any recommendation or advice it may offer to its
customers. 

6.5    Discretionary Accounts.    Broker shall be solely responsible for obtaining customer approval for and supervising
discretionary accounts. 

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6.6    Obligations Regarding Certain Disclosures.    Broker shall make any disclosures and obtain any agreements from its customers
required by applicable law or regulation, including, without limitation, any disclosures or agreements required for margin, listed options, penny stocks, derivative securities, account transfers or
conversions. The cost of making such disclosures or obtaining such agreements shall be borne by Broker. 

7.    The Deposit Account    

	7.1
	Fortis
shall open an account in its books in the name of the Broker (the "Deposit Account") to which there shall be credited:

	(a)
	an
Initial Security Deposit of $1 million in cash or cash equivalent marketable securities;

	(b)
	from
time to time, such other amounts (if any) as may be agreed between Fortis and the Broker. 

Any
balance standing to the credit of the Deposit Account at any relevant time, including any interest credited thereto in accordance with Paragraph 7.2 and any credit resulting from clearance
activity or money transfers is herein called the "Balance". The Deposit Account shall not represent an ownership interest by Broker in Fortis. 

	7.2
	Interest
will be credited to the Deposit Account at the Fortis Account Rate as detailed in Schedule A.

	7.3
	The
Balance shall be available to Fortis only for the purposes described in Paragraphs 7 and 8, and to secure any obligations to Fortis under this Agreement and not for any
other purpose. The Balance shall not be capable of being withdrawn or assigned or otherwise dealt with or encumbered by the Broker, except as specified in Paragraphs 7 and 8.

	7.4
	As
and when a payment obligation of the Broker in favor of Fortis arises, whether pursuant to an indemnity or otherwise, Fortis shall be entitled to apply against such payment
obligation all or any part of the Balance.

	7.5
	Fortis
shall take reasonable steps to recover any amounts payable by any customer to Fortis in respect of which a payment obligation may arise provided that the Broker shall, to the
extent not reasonably recoverable from any customer, Broker or other third party, pay any costs incurred by Fortis in taking such reasonable steps.

	7.6
	The
Balance may be increased from time to time by receipt into the Deposit Account of sums from a customer in respect of which a payment obligation has arisen and been settled in
accordance with Paragraph 7.4.

	7.7
	All
or any part of the Balance will be returned to the Broker if Fortis so agrees or, in no event, later than thirty days after termination of this Agreement if there are no unsettled
Transactions and no pending claims, as to which Broker has been provided notice, for which Broker may be liable to Fortis.

	7.8
	With
reference to Paragraph 7.1, Fortis shall return that part of the Balance to the Broker that exceeds the aggregate of:

	(a)
	the
amount required pursuant to Paragraph 7.1 or such other amount as has been agreed to between Fortis and the Broker; and

	(b)
	the
amount of liquidated financial exposure on all unsettled Transactions.

	7.9
	Fortis
shall keep a record of all deductions and additions to the Deposit Account and shall supply the Broker with a statement of account of any activities in such Deposit Account on
a daily basis. 

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	7.10
	For
the avoidance of doubt, Fortis shall be entitled to retain for its own account any income in excess of the interest payable in accordance with Paragraph 7.2 which Fortis
may derive from its use of any money in the Deposit Account. 

8.    GRANT OF SECURITY INTEREST AND USE OF COLLATERAL    

	8.1
	To
secure the timely discharge of all the Broker's obligations to Fortis, the Broker grants to Fortis a security interest in, lien upon, and right of offset as to the Deposit Account,
the Balance, Broker's proprietary accounts, and all money, securities, financial assets and other investment property, and rights with respect to such Deposit Account, the Balance, and all money,
securities, financial assets and other investment property, and all proceeds thereof and accommodations thereto, now or thereafter held by, deposited with, or otherwise within the possession or
control (whether credited to the Deposit Account or otherwise) of Fortis, its agents, or affiliated persons (as defined by the Securities Exchange Act of 1934, as amended)
("Collateral"); provided, however, that the security interest and lien granted hereunder shall not extend to securities as long as they are carried on
Fortis's books, pursuant to Broker's instructions, in a safekeeping or segregation account for securities to be held free from Fortis's lien.

	8.2
	Fortis
shall have the right to dispose of Collateral in any manner permitted under the New York Uniform Commercial Code or other applicable law. Disposition of the Collateral will be
deemed to be in a commercially reasonable manner if Fortis

	(a)
	retains
the services of a "broker's broker" or other broker or securities dealer,

	(b)
	sells
the Collateral for settlement on the same business day as the day of sale or next business day after sale (cash sale), and

	(c)
	Fortis
or its affiliates may purchase the Collateral at any sale at the highest publicly quoted ask price on the date of sale or at the highest publicly quoted ask price at the open
of business on the next business day if the sale is not held during business hours.

	8.3
	Regarding
Collateral in Fortis's possession or control, Fortis shall use reasonable care in the custody and preservation of such Collateral, but need not take any steps necessary to
preserve rights against prior parties, unless instructed by the Broker and then only at the Broker's expense.

	8.4
	Fortis
may grant a security interest in, pledge, re-pledge, hypothecate, re-hypothecate, enter into, and perform repurchase and reverse repurchase agreements
and securities loan and securities borrow agreements with the Collateral, separate or together with Collateral of other Brokers, without retaining possession or control of a like amount of Collateral
and without notice to the Broker. Fortis may use and deal with the Collateral and bear the risk and benefit thereof; Fortis's only obligation being to return the Collateral upon the Broker's
satisfaction in full of its obligations to Fortis or the deposit with Fortis of Collateral satisfactory to Fortis in substitution for the Collateral being returned or a combination of the foregoing.

	8.5
	At
such time as Fortis reasonably deems itself insecure with respect to the Broker's ability to perform its obligations, Fortis may request and the Broker shall promptly deliver
additional Collateral to Fortis in a reasonable amount as mutually agreed to by Fortis and Broker. As to the additional Collateral, Fortis shall have all the same rights as to additional Collateral as
are granted it with respect to the Collateral in Paragraphs 8.1 through 8.4 above. 

The
Broker specifically agrees that 

	(a)
	to
promptly honor all appropriate demands for payment of funds in immediately available funds which will be fulfilled not later than 6:00 p.m. New York time on a given business
day if such request is made before 10:00 a.m. New York time and by 10:00 a.m. New York time on the following business day if such request is made on or after 6:00 p.m. on such
day. All oral 

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demands
will be deemed made at the time of oral request if immediately thereafter such oral demands are confirmed in writing. 

	(b)
	Securities
deposited by the Broker as Collateral in which the Broker makes a market may be valued at a discount (which may be significant), as determined by
Fortis in its sole discretion.

	(c)
	that
requests by Fortis for the deposit of additional Collateral, reduction in amount or payment in full of credit extended for or arranged for Broker or a combination thereof be
fulfilled not later than 6:00 p.m. New York time on a given business day if such request is made before 10:00 a.m. New York time and by 10 a.m. New York time on the following
business day if such request is made on or after 10:00 a.m. on such day. All oral demands will be deemed made at the time of oral request if immediately thereafter such oral demands are
confirmed in writing. 

9.0    EXTENSION OF CREDIT    

        Forts
will not offer margin accounts to customers introduced by Broker. 

	10.0
	MAINTENANCE
OF BOOKS AND RECORDS 

10.1    Stock Records.    Fortis shall maintain stock records and other prescribed books and records of all transactions executed or
cleared through it. Unless otherwise required by law, Fortis shall have no obligation to maintain, or make available to Broker, such books and records after termination of this Agreement. If, however,
Fortis does make such books and records available to Broker after the termination of this Agreement, Broker shall reimburse Fortis for its costs and expenses in retrieving such books and records. 

10.2    Regulatory Reports and Records.    Broker shall prepare, submit, and maintain copies of all reports, records, and regulatory
filings required of Broker by any entity that regulates it, including, but not limited to, copies of all account agreements and similar documentation obtained pursuant to Paragraph 5 of this
Agreement and any reports and records required to be made or kept under the Currency and Foreign Transactions Reporting Act of 1970, (the "Bank Secrecy Act"), and any rules and regulations promulgated
pursuant thereto. 

10.3    ANTI-MONEY LAUNDERING, OFFICE OF FOREIGN ASSETS CONTROL, AND ANTI-TERRORIST FINANCING
OBLIGATIONS    

        Broker
and Fortis assure each other that each party to this Agreement is performing its anti-money laundering obligations as required by law and regulation and otherwise set
forth the responsibilities that each party will undertake to prevent money laundering and terrorist financing as contemplated by the USA PATRIOT Act and other laws and regulations. 

        At
the time of the opening of any new account, the Broker must obtain sufficient information from its customer to satisfy itself as to the identity of its client and the source of its
funds as more fully set forth in this Paragraph 10.3. 

        Broker
acknowledges it has the primary relationship with the customer which Broker introduces to Fortis and therefore Broker is in the best position to know: (1) the client's
identity; (2) the client's source of funds; (3) the client's intention for those funds; and (4) whether any particular transaction is unusual or suspicious for that particular
client based on Broker's interaction with the client. 

        Fortis
acknowledges it: (1) will use all reasonable efforts to combat money laundering and terrorist financing; (2) shall assist Broker in fulfilling its
anti-money laundering obligations by providing certain transaction monitoring tools and reports to help Broker detect money laundering and other suspicious activity; (3) shall
engage in its own transaction monitoring of Broker's customers in cooperation with Broker; and (4) cooperate with Broker to detect money laundering and terrorist financing. 

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10.3.1    Broker's Responsibilities:    

        a.    Anti-Money Laundering Obligations.    Broker hereby agrees and acknowledges that it is obligated to
and hereby represents and warrants that it now does and will continue to comply with anti-money laundering law and regulations, including any future obligations that may be imposed on
Broker by law or regulation, to know its customers, their source and use of funds, and to monitor for and identify suspicious activity. 

b.    Anti-Money Laundering Program.    Broker has established and maintains an anti-money laundering
program, consisting of, at a minimum, written internal policies, procedures and controls including a means for monitoring and identifying suspicious activity, the designation of an
anti-money laundering compliance officer (whose identity shall be made known to Fortis and to the NASD), an ongoing employee training program, an independent audit function to test such
programs annually, and any additional requirements set forth in the rules of any self-regulatory organization of which Broker is a member. Broker will allow Fortis access to such
information as Fortis deems necessary in order for Fortis to test Broker's adherence to Broker's anti-money laundering program. 

10.3.2    Broker to File CTRs and Provide Copies to Fortis.    Broker is responsible for filing currency transaction reports
("CTRs") and will provide a copy of all such reports to Fortis at the same time as they are filed in accordance with applicable regulations. 

a.    Suspicious Activity Reports.    Broker shall be primarily responsible for filing suspicious activity reports on Form
SAR-SF and shall coordinate such filing with Fortis. Broker shall, as soon as practical after identifying a suspicious activity and in any event prior to filing a suspicious activity
report on SAR-SF, notify Fortis's Anti-Money Laundering Compliance Officer and shall, provided Broker and Fortis have made the filings contemplated by Paragraph 10.3.5
hereof, communicate with Fortis about the transaction for purposes of sharing information about the transaction and determining whether Broker or Fortis shall file the SAR-SF, unless such
sharing of information is prohibited by law. Broker will provide Fortis with copies of all SAR-SFs and other communications it files with respect to accounts held at Fortis, unless
prohibited by law. In addition, Broker shall promptly notify Fortis regarding any account activity Broker reasonably believes to be suspicious, not legitimate, not having a reasonably apparent
explanation, or could support the filing of a Form SAR-SF. 

b.    Other Transaction Reports.    Prior to filing any report with the Treasury Department, the IRS, the U.S. Customs Service or
any regulatory body or organization relating to the reporting of currency transactions or the transfer of currency or monetary instruments into or outside of the United States, including, but not
limited to, CTRs, CMIRs and SAR-SFs, Broker shall notify Fortis's Anti-Money Laundering Compliance Officer (unless such notification is prohibited by law) and cooperate with
Fortis as Fortis may deem appropriate. Broker will provide Fortis with copies of all reports and other communications with respect to accounts held at Fortis that Broker files with the Treasury
Department, the IRS, the U.S. Customs Service, or any regulatory body or organization relating to the reporting of currency transactions, the transfer of currency or monetary instruments into or
outside of the United States, or in regard to any suspicious activity, including, but not limited to, CTRs, CMIRs and SAR-SFs, unless the provision of such reports or communications is
prohibited by law. 

c.    Reports by Fortis.    Fortis reserves the right to make and file such suspicious activity or other reports as listed in
Paragraph 10.3.2 when it deems it necessary or appropriate; and Broker recognizes that when Fortis does so, Fortis does not thereby assume any responsibility for making and filing reports on
behalf of Broker and/or relieve Broker of its own responsibility for making and filing reports as necessary under U.S. or other laws and regulations. Fortis will provide Broker a copy of any such
report that relates to an account for the Broker or a customer of the Broker, unless prohibited by law from doing so. 

d.    Restrictions and Conditions on Certain Accounts.    Broker hereby agrees and acknowledges that it is obligated to comply with
restrictions and conditions on opening and accepting certain accounts, 

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including
but not limited to, the following: (i) Know Your Customer and Government List Obligations, Including OFAC. At the time of the opening
of any new account, Broker must obtain sufficient information from its customer to satisfy itself as to the identity of its client and the source of the client's funds. Broker also must satisfy itself
that opening the account would not violate the provisions of various Executive Orders and regulations administered by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") or be
subject to other restriction based on such relevant government lists as may be published from time to time. Broker will immediately inform Fortis of the existence of any account subject to an OFAC or
government list restriction. As detailed below, Fortis uses interdiction software and will provide such relevant information as may from time to time be available to assist Broker in detecting
possible OFAC and government list violations. 

(ii)    Non-Resident Alien Accounts Carried Directly or Through an Investment Advisor.    For any account opened for a
non-resident alien, Broker must record the customer's passport number and obtain a copy of the government document used to verify the individual's identity at the time the account is
opened. Broker must also obtain a copy of a passport or other governmental identification for any of the following: the grantor/settlor of a foreign trust; and any beneficial owner of an offshore
corporate account if: (1) the account is a personal holding company or private investment company; or (2) the beneficial owner of the entity which maintains the account holds more than a
10% interest in the entity. Broker may not open any introduced account for a personal holding company or private investment company if one or more beneficial owners are U.S. persons. With respect to
those accounts involving investment advisers, Broker will conduct a sufficient inquiry to obtain and record information as outlined above about the adviser's customer, including ascertaining the
identity of each beneficial owner, of any such account prior to opening the account. 

g.    Restrictions on Numbered Accounts.    Broker will not establish or maintain specially coded or numbered accounts. 

h.    Source and Use of Funds.    Broker shall undertake reasonable efforts to ascertain that the customer is not engaged in
unlawful activities, the assets being invested have been legitimately obtained, and any disbursements to a customer or third party are for legitimate purposes. 

i.    Transaction Reports and Transaction Monitoring Systems.    In order to detect suspicious activity, Broker shall avail itself
of the transaction reports provided by Fortis or shall otherwise perform its own transaction monitoring in order to detect suspicious activity. 

j.    CIP.    In order to induce reasonable reliance by Fortis on Broker with respect to Broker's customer identification program
("CIP"), Broker represents and warrants: (1) it has a written CIP consistent with Section 326 of the USA PATRIOT Act and the rules thereunder; (2) it is subject to a rule
implementing 31 U.S.C. 5318(h); (3) it is regulated by a federal functional regulator as that term is defined under 31.C.F.R. § 103.120(a)(2); and (4) it will certify
annually to Fortis that it has implemented an anti-money laundering program and will perform the requirements set forth in Broker's written CIP. 

k.    Transaction Monitoring System.    The Broker may perform OFAC checks through the NASD website for purposes of detecting names
of OFAC prohibited individuals, entities in countries and other adverse information about the customer ("negative verification"). 

10.3.3    Fortis's Responsibilities:    

a.    Anti-Money Laundering Obligations.    Fortis hereby agrees and acknowledges that it is obligated to comply with
anti-money laundering law and regulation, including any future obligations that may be imposed on Fortis, and that it is responsible to combat money laundering and terrorist financing.
Fortis shall (1) make available to Broker such information as it may from time to time recognize as potentially useful through use of Fortis's various interdiction monitoring tools to help
Broker detect possible money laundering and terrorist financing schemes, and (2) conduct various manual and 

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systematic
screenings to assist Broker in order to detect suspicious activity and OFAC and other government list violations. The actual systems and tools used for these purposes may vary from time to
time, at Fortis's discretion. 

b.    Anti-Money Laundering Program.    Fortis has established and will continue to maintain an anti-money
laundering compliance program in accordance with § 352 of the USA PATRIOT Act as well as NYSE and NASD rules. Fortis further represents and warrants: (1) it has written
anti-money laundering policies and procedures consistent with its role as a clearing broker; (2) it has a designated Anti-Money Laundering Compliance Officer (whose
identity has been made known to Broker and the NASD); (3) it provides continuous anti-money laundering training to its employees; and (4) its anti-money
laundering program is independently audited on an annual basis. 

c.    Transaction Reports.    Fortis shall provide Broker with anti-money laundering and other useful activity reports
which can be used to detect suspicious activity in order to assist Broker to meet its obligations. Fortis will offer training in the use of such reports. Fortis will also, upon request, provide Broker
with relevant information in Fortis's possession that the Broker needs in order to file various required reports, including Forms CTR, CMIR, and SAR-SF and will provide such further
assistance as may be reasonably required in the filing of such reports. 

d.    Transaction Monitoring Systems.    Fortis shall perform its own transaction monitoring in order to detect suspicious activity. 

e.    Notification if Fortis Detects Prima Facie Suspicious Activity.    Through its trained employees and the use of automated
systems, Fortis may detect suspicious activity. In such circumstances, Fortis will contact Broker about the transaction for purposes of sharing information about the transaction, unless Fortis
believes that Broker itself may be engaged in suspicious activity and/or Fortis would be prohibited by law from sharing with Broker information about the suspicious transaction. Nothing in this
Paragraph is to be read to prohibit Fortis from filing its own suspicious activity and other reports, as it believes necessary or appropriate. Broker shall take such steps as Fortis may reasonably
request in connection with any potential suspicious activity in an account, including closing the account. 

f.    Incoming FedWires.    For all incoming federal fund wires ("FedWires"), Fortis or Fortis's clearing institution shall
initially scan relevant information, including the remitter's name, address, and account number, and the originating bank's name and address (to the extent provided on an incoming wire) to detect
possible OFAC restrictions. 

g.    Outgoing FedWires for Third Parties.    As a general rule, Fortis will not process third party wires for the Broker. If
requested in writing by the Broker, third-party wires are processed by Fortis on an exception basis. When allowed, for outgoing FedWires ordered to the delivery of a person or entity other than the
account holder, Fortis shall review relevant information, including the payee's name, address, purpose, and account number, and the recipient bank's name and address, to detect possible violations of
OFAC restrictions. 

h.    Electronic Funds Transfer.    Fortis represents it has systems designed to comply with the Electronic Funds Transfer rule when
processing disbursements on behalf of Broker. Fortis shall comply with the Electronic Funds Transfer rule based on information provided by Broker. 

10.3.4    Bulletins and Other Informational Memoranda.    Fortis may from time to time issue Bulletins or other informational
memoranda to Broker setting forth Fortis's policies and procedures regarding anti-money laundering and terrorist financing. Broker agrees to become familiar with such Bulletins and
informational memoranda and to abide by them. 

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10.3.5    Cooperation.    Broker and Fortis shall cooperate with each other and exchange information to assist each other in
detecting money laundering and terrorist financing. Fortis and Broker agree to consult with each other from time to time on the allocation of anti-money laundering responsibilities between
them. 

10.3.6    No Party to Cause Violation by the Other.    Neither party to this Agreement shall knowingly take any action to cause the
other party to be in violation of any anti-money laundering laws or regulations. 

11.0    RECEIPT AND DELIVERY OF FUNDS AND SECURITIES    

11.1    Receipt and Delivery of Funds and Securities.    

11.1.1    Cashiering Functions.    Fortis shall perform cashiering functions for accounts introduced by Broker. These functions
shall include receipt and delivery of securities; receipt and payment of funds. Broker acknowledges that security transactions between Broker and customer will be settled with the customers' clearing
agent on a delivery versus payment or receipt versus payment basis. 

11.1.2    Purchases and sales.    Broker shall be responsible for purchases and sales (including transactions on a "when issued"
basis) made for customers until actual and complete payment has been received by Fortis. Broker shall not introduce accounts requiring settlement on a "delivery versus payment" or "receive versus
payment" basis unless such account utilizes the facilities of a securities depository or qualified vendor as defined in NYSE Rule 387, for all depository eligible transactions. Broker shall be
responsible for sales (including those on a "when issued" basis), until Fortis has received, in acceptable form, the securities involved in the transaction. If Fortis does not receive delivery of
securities in an acceptable form, Fortis may buy-in all or part of the securities. 

11.1.3    Failure to Settle or Pay.    In the event of a failure to timely deposit required funds or securities, Fortis may take
appropriate remedial action. Without waiving or otherwise limiting its right to take other remedial action, Fortis may at its option charge interest at rates as agreed in Schedule A ("Fully
Disclosed Pricing Schedule") to this Agreement. Broker may pass such charges on to its customers but Broker remains responsible therefor until actually paid. 

11.1.4    Check Writing Authority.    Fortis does not offer any check writing facilities and services. 

11.1.5    Restricted and Control Stock Requirements.    Broker shall be responsible for determining whether any securities held in
Broker's or its customer accounts are restricted or control securities as defined by applicable laws, rules, or regulations. Broker is responsible for assuring that orders and other transactions
executed for such securities comply with such laws, rules, and regulations. 

11.1.6    Corporate Action Requests/Soliciting Dealer Agreements.    Broker requests and authorizes Fortis to execute as Broker's
agent-in-fact any and all Soliciting Dealer Agreements for corporate actions involving securities or other interests held by Broker's customers on the books of Fortis. Fortis
agrees to provide notice of the pending corporate action to Broker at its designated locations. Fortis further agrees to collect and submit corporate action requests from Broker and submit them to the
soliciting party in accordance with the instructions received from the soliciting party. Fortis agrees to use its best efforts to communicate corporate action information to Broker and, where
applicable, Broker's customers, but shall not be liable for a) any delays in the communication of corporate action information or b) delays in the transmission of collected corporate
action requests to the soliciting party unless caused by Fortis's gross negligence. All fees received from the soliciting party will be credited to Broker. In consideration of providing this service
to Broker, Broker agrees to indemnify and hold harmless Fortis, its affiliates, officers, agents and employees from all claims, suits, investigations, damages and defense costs (including reasonable
attorney's fees) that arise in connection with this Paragraph. 

10

 

12.0    SAFEGUARDING OF FUNDS AND SECURITIES    

        Except
as otherwise provided in this Agreement, Fortis shall be responsible for the safekeeping of all money and securities received by it pursuant to this Agreement. However, Fortis
will not be responsible for any funds or securities delivered by a customer to Broker until such funds or securities are actually received by Fortis or deposited in bank accounts maintained by Fortis. 

13.0    CONFIRMATIONS AND STATEMENTS    

13.1    Preparation and Transmission of Confirmations and Statements.    Fortis shall prepare confirmations and summary periodic
statements and shall, to the extent required by the Rules, transmit them to customers and Broker in a timely fashion except to the extent the parties agree in writing that Broker may transmit
confirmations to customers. Confirmations and statements shall be prepared on forms disclosing that the account is carried on a fully-disclosed basis for the Broker in accordance with applicable
rules, regulations, and interpretations. Broker will have the ultimate regulatory responsibility for compliance with the prospectus delivery requirements of the Securities Act of 1933, as amended,
regardless of its retention of a prospectus fulfillment service to perform delivery of same. 

13.2    Examination and Notification of Errors.    Broker shall examine all confirmations, statements, and other reports in whatever
medium provided to Broker by Fortis. Broker must notify Fortis of any error claimed by Broker in any account; as to purchase and sales transactions prior to settlement date and as to all other
transactions within the time in which Fortis is able to, without violating applicable law, reverse the transaction. Fortis shall not be liable under any circumstances for any expense, claim, loss, or
damage suffered by the Broker, Client, or any third person arising out of or caused by any errors, failures, or omissions that shall have been reported promptly and timely by Fortis in reports,
statements, or other advice to the Broker, which errors, failures, or omissions the Broker shall not have promptly advised Fortis to remedy or correct. If Broker fails to do so, Broker shall be deemed
to have waived its right to make any claim against Fortis with respect to such error. 

14.0    SETTLEMENT OF TRANSACTIONS    

14.1    Responsibility to Accept or Reject Trades.    Fortis shall settle transactions in customers' accounts and release or deposit
money or securities to or for accounts, but only upon Broker's instructions. 

14.2    Responsibility for Errors in Execution.    Broker shall be responsible for transmission to Fortis of all orders and for any
errors in the Broker's recording or transmission of such orders. 

15.0    OTHER OBLIGATIONS AND RESPONSIBILITIES OF BROKER    

15.1    Provision of Financial Information.    Broker shall furnish Fortis copies of FOCUS Reports, financial statements for the
current fiscal year, the executed Forms X-17a-5 (Parts I and IIA) filed with the SEC, any amendments to Broker's Form BD, and any other regulatory or financial reports Fortis
may from time to time require. Broker shall provide such reports to Fortis at the time Broker files such reports with its primary examining authority. 

15.2    Executing Brokers.    If Broker wishes to act as an "Executing Broker" as such term is understood in that certain letter
dated January 25, 1994, from the Division of Market Regulation of the Securities and Exchange Commission, as the same may be amended, modified or supplemented from time to time (the
"No-Action Letter"), then all terms herein shall have the same meaning as ascribed thereto either in the Agreement or in the No-Action Letter as the sense thereof shall
require. Broker may, from time to time, execute trades for Prime Brokerage Accounts in compliance with the requirements of the No-Action Letter. (The No-Action Letter requires,
inter alia, that a contract be executed between Fortis and Prime Broker, and between Broker and Prime Brokerage Customer prior to the transaction of any business hereunder.) Broker shall promptly
notify Fortis, but in no event later than 5:00 p.m. New York time, of trade date in a mutually acceptable fashion, of such trades in sufficient detail for Fortis to be able to report and
transfer any trade executed by Broker on behalf of a Prime Brokerage 

11

 

Account
to the relevant Prime Broker. Broker understands and agrees that if Prime Broker shall disaffirm or "dk" any trade executed by Broker on behalf of a Prime Brokerage Account, Broker shall open
an account for such Prime Brokerage Account in its range of accounts and shall transfer or deliver the trade to such account at the risk and expense of Broker to the same extent as for any account
introduced by Broker pursuant to this Agreement. Broker understands and agrees that all Prime Brokerage Accounts shall be conducted in accordance with the requirements of the No-Action
Letter and any relevant agreement between Broker and a Prime Brokerage Customer or between Fortis and relevant Prime Broker. Broker further agrees to supply Fortis with such documents, papers and
things, which from time to time are reasonably required by Fortis to carry out the intention of this Paragraph. Broker agrees that it shall know its customer, obtain appropriate documentation,
including new account form, conduct its own credit check and determine the availability of shares as required for processing of any short sales. Broker shall maintain facilities to clear any
disaffirmed trades. 

15.3    Currency Fluctuation.    If Broker directs Fortis to enter into any transaction to be effected on any securities exchange or
in any market on which transactions are settled in a foreign currency, (i) any profit or loss arising as a result of a fluctuation in the rate of exchange between such currency and the United
States Dollar shall be entirely for Broker's account and risk, (ii) all initial and maintenance margin deposits required or requested by Fortis shall be in the currency required by the
applicable marketplace or clearing agency in such amounts as Fortis in its sole discretion may require, and (iii) Fortis is authorized to convert funds in the account into and from such foreign
currency at rates of exchange prevailing at the banking or other institutions with which Fortis normally does business. 

16.0    OTHER OBLIGATIONS AND RESPONSIBILITIES OF FORTIS    

16.1    Use of Third-Party Services.    Subject to Paragraph 18 hereof, Fortis may, at its reasonable option, and consistent
with common industry practice, retain one or more independent data processing or other service bureaus to perform functions (including, but not necessarily limited to, pricing services or proxy
mailing services) assigned to Fortis under this Agreement. 

16.2    Tax Withholding.    Broker hereby agrees to take necessary measures to comply with the income tax withholding requirements
of Section 3406 and Sections 1441 through 1446 (the nonresident alien withholding requirements) of the Internal Revenue Code of 1986, as amended ("IRC") with respect to its customer accounts.
Broker agrees to furnish to Fortis any tax information, e.g., taxpayer identification numbers and certifications provided by the customer on IRS Forms W-8, W-8BEN,
W-8IMY, W-8EXP, W-8ECI, W-9, or any acceptable substitute in its possession relating to each customer account transferred to Fortis and to each future
customer account opened. Broker acknowledges that Fortis will rely on such information for purposes of determining Fortis's obligation to withhold federal income tax pursuant to Sections 1441 through
1446 and 3406 of the Internal Revenue code. Broker hereby authorizes Fortis to employ any procedures permitted under applicable law or regulation to achieve compliance with its withholding obligations
under federal income tax law. 

17.0    DAMAGES    

        As
between the parties, neither party shall be liable for special, indirect, incidental, consequential or punitive damages, whether such damages are incurred or experienced as a result
of entering into or relying on this Agreement or otherwise, even if the parties have been advised of the possibility of such damages. Broker and Fortis each agree not to assist any claim for punitive
damages against the other. 

12

   
18.0    LIABILITY    

18.1    Liability of Fortis    

18.1.1    Fortis Indemnification.    In addition to any other obligations it may possess under other provisions of this Agreement,
Fortis shall indemnify, defend, and hold harmless Broker from and against all claims, demands, proceedings, suits, actions, liabilities, expenses, and reasonable attorney's fees, and costs in
connection therewith arising out of any negligent, reckless, willful, fraudulent, or criminal act or omission on the part of any of Fortis's officers or employees with respect to the services provided
by Fortis under this Agreement. 

18.1.2    Except
when arising out of any negligent, reckless, willful, fraudulent, or criminal act or omission on the part of any of Fortis's officers or employees, Fortis shall not be
liable for any expense, claim, loss or damage that the Broker, Broker or any third person may suffer by reason of any delay the Broker or Fortis may experience in obtaining: 

	(a)
	securities
from any clearing agent, transfer agent, Federal Reserve book entry system, issuer, broker, dealer, Broker or third person; or

	(b)
	moneys
from a Broker of the Broker, bank, clearing agent, the Federal Reserve wire transfer system or third person. 

18.1.3    Except
when arising out of any negligent, reckless, willful, fraudulent, or criminal act or omission on the part of any of Fortis's officers or employees, Fortis shall not be
liable for any expense, claim, loss or damage suffered by the Broker, Broker or any third person due to Fortis's failure to follow any special terms or conditions on receipts from or deliveries to one
or more persons imposed by the Broker at its discretion from time to time. 

18.1.4    Except
when arising out of any negligent, reckless, willful, fraudulent, or criminal act or omission on the part of any of Fortis's officers or employees, Fortis shall not be
liable for any expense, claim, loss or damage the Broker, Broker or any third person may suffer because any security received or delivered by Fortis shall be invalid or fraudulent by reason of 

	(a)
	any
failure of signature by an unauthorized person on a written instrument;

	(b)
	forgery
or wrongful alteration of a written instrument; or

	(c)
	inaccuracy,
incompleteness or falsity of data transmitted by computer tape, terminal or other computer facilities or in a written instrument 

if
Fortis shall have had reason to believe that such instrument, instruction or data was for the account or benefit of the Broker or that the writing was signed by or the data or computer tape was
transmitted by an appropriately authorized person. 

18.1.5    Fortis
may act on oral instructions from a person Fortis reasonably believes to be authorized to give such instructions, and the Broker will be so bound except as to instructions
given after the opening of business on the second Business Day after receipt by Fortis of a signed written notice from the Broker that such person is not so authorized. Except when arising out of any
negligent, reckless, willful, fraudulent, or criminal act or omission on the part of any of Fortis's officers or employees, Fortis shall not be liable for any expense, claim loss or damage the Broker,
Broker or any third person may suffer by reason of Fortis acting upon any instructions (whether written or oral or via computer facilities) or any notice, request, waiver, consent receipt or other
document which Fortis reasonably believes to be genuine or transmitted by authorized persons. 

13

 

18.1.6    In
performing its obligations pursuant to this Agreement, Fortis may use such agents, clearing agents, correspondents, custodians, and securities depositories as Fortis, in its
discretion, deems necessary, appropriate or desirable, including, but not limited to 

	(a)
	DTC,

	(b)
	Midwest
Securities Trust Corporation,

	(c)
	National
Securities Clearing Corporation,

	(d)
	International
Securities Clearing Corporation,

	(e)
	Fixed
Income Clearing Corporation,

	(f)
	Clearstream,

	(g)
	Euroclear,
and

	(h)
	Federal
Reserve Book Entry System. 

Except
when arising out of any negligent, reckless, willful, fraudulent, or criminal act or omission on the part of any of Fortis's officers or employees, Fortis shall not be liable for any expense,
claim, loss or damage the Broker, Broker or any third person may suffer by reason of any action or omission to act on the part of such agents, clearing agents, correspondents, custodians or securities
depositories except that Fortis shall pay the Broker an allocable portion of any recovery by Fortis from such agents, clearing agents, correspondents, custodians or securities depositories with
respect to such action or omission to act. 

18.1.7    All
releases and indemnities provided for in this Paragraph 18 shall survive termination of this Agreement. This shall remain the case notwithstanding any notification by
the Broker, Broker or any third person to Fortis of any such loss, injury or damage. 

18.1.8    Except
when arising out of any negligent, reckless, willful, fraudulent, or criminal act or omission on the part of any of Fortis's officers or employees, Fortis's liability
(whether in contract, tort or otherwise) to the Broker for any failure, delay or error shall in no circumstances exceed the sum of: 

	(a)
	any
interest the Broker may fail to earn or any interest the Broker may incur as a result of such failure, delay or error; and

	(b)
	the
Clearing Fee payable in respect of the relevant Transaction less any fee or interest received by the Broker which the Broker would not have been entitled to receive if the
failure, delay or error had not occurred. 

18.1.10    To
the extent not prohibited by the Applicable Rules, the Broker agrees to release, indemnify, and hold harmless Fortis, its officers, directors, employees, agents, and affiliated
persons for: 

interpretations
set forth in the SEC's No-Action Letter regarding Proprietary Accounts of Introducing Brokers and Dealers (PAIB) dated November 3, 1998: 

20.1    Fortis
will perform a separate computation for PAIB assets (PAIB reserve computation) of Broker in accordance with the customer reserve computation set forth in SEC
Rule 15c3-3 (customer reserve formula) with the following modifications: 

	a.
	Any
credit (including a credit applied to reduce a debit) that is included in the customer reserve formula will not be included as a credit in the PAIB reserve computation;

	b.
	Note E(3)
to Rule 15c3-3a, which reduces debit balances by one percent under the basic method and subparagraph (a)(I)(ii)(A) of
Rule 15c3-1, which reduces debit balances by three percent under the alternative method will not apply; and 

14

 

	c.
	Neither
Note E(I) to Rule 15c3-3a nor NYSE Interpretation /04 to Item 10 of Rule 15c3-3a regarding securities concentration charges
is applicable to the PAIB reserve computation. 

20.2    PAIB
reserve computation will include all the proprietary accounts of Broker. All PAIB assets will be kept separate and distinct from customer assets under the customer reserve
computation set forth in SEC Rule l5c3-3. 

20.3    PAIB
reserve computation will be prepared within the same time frames as those prescribed by Rule 15c3-3 for the customer reserve formula. 

20.4    Fortis
will establish and maintain a separate "Special Reserve Account for the Exclusive Benefit of PAIB Customers" with a bank in conformity with the standards of
Rule 15c3-3(f) (PAIB Reserve Account). Cash and/or qualified securities as defined in the Rule will be maintained in the PAIB Reserve Account in an amount equal to the PAIB reserve
requirement. 

20.5    If
the PAIB reserve computation results in a deposit requirement, the requirement can be satisfied to the extent of any excess debit in the customer reserve formula of the same date.
However, a deposit requirement resulting from the customer reserve formula cannot be satisfied with excess debits from the PAIB reserve computation. 

20.6    Within
two business days of entering into this Agreement, Broker must notify its designated examining authority ("DEA") in writing that it has entered into a PAIB agreement with its
clearing broker-dealer. 

20.7    Upon
discovery that any deposit made to the PAIB Reserve Account did not satisfy its deposit requirement, Fortis will immediately notify its DEA and the SEC. Unless a corrective plan
is found to be acceptable by the SEC and the DEA, Fortis will provide written notification within five business days of the date of discovery to Broker that PAIB assets held by Fortis will not be
deemed allowable assets for net capital purposes. 

20.8    To
the extent applicable, commissions receivable and other receivables of Broker from Fortis (excluding clearing deposits) that are otherwise allowable assets under the net capital
rule are not to be included in the PAIB reserve computation, provided the amounts have been clearly identified as receivables on the books and records of the Broker and as payables on the books of
Fortis. 

21.0    COMMUNICATION    

21.1    Notice to Customers.    Broker shall, upon the opening of an account pursuant to Paragraph 5 of this Agreement, mail
to each customer a copy of the notice to customers required by NYSE Rule 382(c) and NASD Rule 3230(g). 

21.2    Customer Complaint Reporting and Customer Notification.    Broker authorizes and instructs Fortis to forward promptly any
written customer complaint received by Fortis regarding Broker and/or its associated persons relating to functions and responsibilities allocated to Broker under this Agreement to a) Broker and
b) Broker's DEA designated under Section 17 of the Securities and Exchange Act of 1934, as amended, or, if none, to Broker's appropriate regulatory agency or authority. Further, Broker
authorizes Fortis to notify the customer, in writing, that Fortis has received the complaint, and the complaint has been forwarded to Broker's DEA (or, if none, to the appropriate regulatory agency). 

21.3    Restriction on Advertising.    Neither Fortis nor Broker shall utilize the name of the other in any way without the other's
prior written consent except to disclose the relationship between the parties. Neither party shall employ the other's name in such a manner as to create the impression that the relationship between
them is anything other than that of clearing broker and introducing broker. 

21.4    Linking Between Sites.    Without express written authorization, neither party may provide or allow an electronic hyperlink
directly from its service or site on the Internet or another site over which that party has control to the service or site on the Internet of the other party. 

15

   
22.0    TERMINATION OF AGREEMENT    

This
Agreement shall continue until terminated as hereinafter provided: 

22.1    Termination upon 90-Day Notice.    This Agreement may be terminated by either party without cause upon ninety
days prior notice. 

22.2    Immediate Termination.    This Agreement may be terminated by Fortis or Broker immediately in the event that (a) the
other party is enjoined, disabled, suspended, prohibited, or otherwise becomes unable to engage in the securities business or any part of it by operation of law or as a result of any administrative or
judicial proceeding or action by the SEC, any state securities law administrator, or any regulatory or self-regulatory organization having jurisdiction over such party or (b) the
other party (i) becomes or is declared insolvent; (ii) voluntarily files or is the subject of, a petition commencing a case under any chapter of Title 11 of the United States Code;
(iii) makes a general assignment for the benefit of its creditors; (iv) admits in writing its inability to pay its debts as they mature; (v) sells or enters into negotiations to
sell all or substantially all of its assets; (vi) files an application or consents to the appointment of, or there is appointed, any receiver, or a permanent or interim trustee of that party or
any of its subsidiaries, as the case may be, or all or any portion of its property, including, without limitation, the appointment or authorization of a trustee, receiver or agent under applicable law
or under a contract to take charge of its property for the purpose of enforcing a lien against such property or for the purpose of general administration of such property for the benefit of its
creditors; (vii) files a petition seeking a reorganization of its financial affairs or to take advantage of any bankruptcy, reorganization, insolvency, readjustment of debt, dissolution or
liquidation law or statute or files an answer admitting the material allegations of a petition filed against it in any proceeding under any such law or statute; or (viii) takes any corporate
action for the purpose of effecting any of the foregoing. 

22.3    Conversion of Accounts.    In the event that this Agreement is terminated for any reason, Broker shall arrange for the
conversion of Broker's and its customer accounts to another clearing broker or to Broker if it becomes self-clearing. Broker shall give Fortis Notice (the "Conversion Notice") of:
(i) the name of the broker that will assume responsibility for clearing services for customers and Broker; (ii) the date on which such broker will commence providing such services;
(iii) Broker's undertaking, in form and substance satisfactory to Fortis, that Broker's agreement with such clearing broker provides that such clearing broker will accept on conversion all
Broker and customer accounts then maintained by Fortis; and (iv) the name of an individual or individuals within new clearing broker's organization whom Fortis may contact to coordinate the
conversion. The Conversion Notice shall accompany Broker's notice of termination given pursuant to this Paragraph. 

22.4    Survival.    Termination of this Agreement in any manner shall not release Broker or Fortis from any liability or
responsibility with respect to any representation or warranty or transaction effected on the books of Fortis. 

23.0    CONFIDENTIALITY    

	23.1
	"Confidential
Information" of a party shall mean all data and information submitted to the other party or obtained by the other party in connection with the services, including
information relating to a party's customers (which includes, without limitation, Non-Public Personal Information as that term is defined in Securities and Exchange Commission
Regulation S-P), technology, operations, facilities, consumer markets, products, capacities, systems, procedures, security practices, research, development, business affairs, ideas,
concepts, innovations, inventions, designs, business methodologies, improvements, trade secrets, copyrightable subject matter and other proprietary information.

	23.2
	All
Confidential Information relating to a party shall be held in confidence by the other party to the same extent and in at least the same manner as such party protects its own
confidential or proprietary information. Neither party shall disclose, publish, release, transfer or otherwise make 

16

 

available
Confidential Information of the other party in any form to, or for the use or benefit of, any person or entity without the other party's consent. Each party shall, however, be permitted to
disclose relevant aspects of the other party's Confidential Information to its officers, agents, subcontractors and employees to the extent such disclosure is reasonably necessary for the performance
of its duties and obligations under this Agreement and such disclosure is not prohibited by Gramm-Leach-Bliley Act of 1999 ("GLBA"), which amends the Securities and Exchange Act of 1934, as it may be
amended from time to time, the regulations promulgated by the Securities and Exchange Commission thereunder or other applicable law; provided, however, that such party shall take all reasonable
measures to ensure that Confidential Information of the other party is not disclosed or duplicated in contravention of the provisions of this Agreement by such officers, agents, subcontractors and
employees. The obligations in this Paragraph shall not restrict any disclosure by either party pursuant to any applicable law, or by order of any court or government agency (provided that the
disclosing party shall give prompt notice to the non- disclosing party of such order) and shall not apply with respect to information which (i) is developed by the other party
without violating the disclosing party's proprietary rights; (ii) is or becomes publicly known (other than through unauthorized disclosure); (iii) is disclosed by the owner of such
information to a third party free of any obligation of confidentiality; (iv) is already known by such party without an obligation of confidentiality other than pursuant to this Agreement or any
confidentiality agreements entered into between the parties before the effective date of this Agreement; or (v) is rightfully received by a party free of any obligation of confidentiality. If
the GLBA, the regulations promulgated by the Securities and Exchange Commission thereunder or other applicable law now or hereafter in effect imposes a higher standard of confidentiality to the
Confidential Information, such standard shall prevail over the provisions of this Paragraph. 

	23.3
	Paragraphs
23.1 through 23.2 shall survive the termination of this Agreement.

	24.0
	ACTION
AGAINST CUSTOMERS BY FORTIS 

        Fortis
may, in its sole discretion and at its own expense and, upon written notice to and consent by Broker, whose consent will not be unreasonably withheld, institute and prosecute in
its name any action or proceeding against any of Broker's customers in relation to any controversy or claim arising out of Fortis's transactions with Broker or with Broker's customers. Nothing
contained in this Agreement shall be deemed either (a) to require Fortis to institute or prosecute such an action or proceeding; or (b) to impair or prejudice its right to do so, should
it so elect, nor shall the institution or prosecution of any such action or proceeding relieve Broker of any liability or responsibility which Broker would otherwise have had under this Agreement.
Broker assigns to Fortis its rights against its customer as necessary to effectuate the provisions of this Paragraph. If Broker does not consent to Fortis's institution or prosecution of an action or
proceeding against the Broker's Customer pursuant to this paragraph, then Broker agrees to fulfill all of the customer's matured obligations to Fortis. 

	25.0
	NOTICES

        Any
Notice required or permitted to be given under this Agreement shall be sufficient only if it is in writing and sent by hand or by certified mail, return receipt requested, to the
parties at the following address: 

        Broker:

Keefe,
Bruyette & Woods, Inc.

787 Seventh Avenue

4th Floor

New York, NY 10019

Attn: Robert Giambrone 

        Fortis:

Fortis
Securities LLC

520 Madison Avenue

New York, NY 10022

Attn: 

17

  

	26.0
	ARBITRATION

26.1    Arbitration Requirement.    Any dispute between Broker and Fortis that cannot be settled shall be taken to arbitration as
set forth in Paragraph 26.3 below. 

26.2    ARBITRATION DISCLOSURE.    

	•
	ARBITRATION
IS FINAL AND BINDING ON THE PARTIES.

	•
	THE
PARTIES ARE WAIVING THEIR RIGHT TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO JURY TRIAL.

	•
	PRE-ARBITRATION
DISCOVERY IS GENERALLY MORE LIMITED THAN AND DIFFERENT FROM COURT PROCEEDINGS.

	•
	THE
ARBITRATORS' AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDINGS OR LEGAL REASONING AND ANY PARTY'S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULINGS BY THE ARBITRATORS
IS STRICTLY LIMITED.

	•
	THE
PANEL OF ARBITRATORS WILL TYPICALLY INCLUDE A MINORITY OF ARBITRATORS WHO WERE OR ARE AFFILIATED WITH THE SECURITIES INDUSTRY. 

26.3    ARBITRATION AGREEMENT.    

ANY
CONTROVERSY BETWEEN US ARISING OUT OF YOUR BUSINESS OR THIS AGREEMENT SHALL BE SUBMITTED TO ARBITRATION CONDUCTED BEFORE THE NEW YORK STOCK EXCHANGE, INC., OR NASD DISPUTE
RESOLUTION, INC. (OR THEIR SUCCESSOR FIRMS), AND IN ACCORDANCE WITH THE THEN RULES OBTAINING OF THE SELECTED ORGANIZATION AND SHALL BE CONDUCTED AS A BROKER TO BROKER OR MEMBER VS MEMBER
DISPUTE. ARBITRATION MUST BE COMMENCED BY SERVICE UPON THE OTHER PARTY OF A WRITTEN DEMAND FOR ARBITRATION OR A WRITTEN NOTICE OF INTENTION TO ARBITRATE, THEREIN ELECTING THE ARBITRATION TRIBUNAL. 

NO
PERSON SHALL BRING A PUTATIVE OR CERTIFIED CLASS ACTION TO ARBITRATION, NOR SEEK TO ENFORCE ANY PRE-DISPUTE ARBITRATION AGREEMENT AGAINST ANY PERSON WHO HAS INITIATED IN COURT A
PUTATIVE CLASS ACTION AND WHO IS A MEMBER OF A PUTATIVE CLASS AND WHO HAS NOT OPTED OUT OF THE CLASS WITH RESPECT TO ANY CLAIMS ENCOMPASSED BY THE PUTATIVE CLASS ACTION UNTIL: (i) THE CLASS
CERTIFICATION IS DENIED; (ii) THE CLASS IS DECERTIFIED; OR (iii) THE CUSTOMER IS EXCLUDED FROM THE CLASS BY THE COURT. SUCH FORBEARANCE TO ENFORCE AN AGREEMENT TO ARBITRATE SHALL NOT
CONSTITUTE A WAIVER OF ANY RIGHTS UNDER THIS AGREEMENT EXCEPT TO THE EXTENT STATED HEREIN. 

27.0    GENERAL PROVISIONS    

27.1    Successors and Assigns.    This Agreement shall be binding upon and shall inure to the benefit of the respective successors
and assigns of Broker and Fortis. No assignment of this Agreement or any rights, including those to indemnification hereunder by Broker shall be effective unless Fortis's written consent shall be
first obtained. 

27.2    Severability.    If any provision of this Agreement shall be held to be invalid or unenforceable, the validity or
enforceability of the remaining provisions and conditions shall not be affected thereby. 

18

 

27.3    Counterparts.    This Agreement may be executed in one or more counterparts, all of which taken together shall constitute a
single agreement. 

27.4    Entire Agreement Amendments and Duties Not Specifically Enumerated Herein.    This Agreement represents the entire agreement
between the parties with respect to the subject matter contained herein and all prior discussions, agreements, and promises, written or oral, are merged herein. This Agreement may not be changed
orally, but only by an agreement in writing signed by the parties. Fortis shall not be responsible or liable for failure to perform any duties not specifically enumerated herein. 

27.5    Captions.    Captions herein are for convenience only and are not of substantive effect. 

27.6    Choice of Law.    This Agreement shall be governed by and construed in accordance with the internal laws of the State of New
York, without giving effect to the conflicts of laws or principles thereof. This Agreement shall not be governed by the United Nations Convention on the International Sale of Goods. 

27.7    Citations.    Any reference to the rules or regulations of the SEC, NASD, the NYSE, or any other regulatory or
self-regulatory organization are current citations. Any changes in the citations (whether or not there are any changes in the text of such rules or regulations) shall be automatically
incorporated herein. 

27.8    Construction of Agreement.    Neither this Agreement nor the performance of the services hereunder shall be considered to
create a joint venture or partnership between Fortis and Broker or between Broker and other brokers for whom Fortis may perform the same or similar services. 

27.9    Third-Parties.    This Agreement is between the parties hereto and is not intended to confer any benefits on third-parties
including, but not limited to, customers of Broker. 

27.10    Non-Exclusivity of Remedies.    The enumeration herein of specific remedies shall not be exclusive of any other
remedies. Any delay or failure by a party to this Agreement to exercise any right, power, remedy, or privilege herein contained, or now or hereafter existing under any applicable statute or law, shall
not be construed to be a waiver of such right, power, remedy, or privilege. No single, partial, or other exercise of any such right, power, remedy, or privilege shall preclude the further exercise
thereof or the exercise of any other right, power, remedy, or privilege. 

27.11    SIPA; Rule 15c3-3.    All introduced customers are the customers of Broker except as provided under the
Securities Investor Protection Act ("SIPA") and SEC financial responsibility rules. Nothing in this Paragraph will otherwise change or affect the provisions of this Agreement which provide that the
customer account remains Broker's customer account for all other purposes, including but not limited to, supervision, suitability and indemnification. 

27.12    Provision of Reports and Exception Reports.    On or before the effective date of this Agreement and annually thereafter,
Fortis shall provide to Broker, pursuant to NYSE Rule 382(e) and NASD Rule 3230(c), a list of all reports it offers to Broker. Broker shall promptly advise Fortis, in writing, of those
specific reports it elects to receive. Fortis and Broker each represent that their obligations relative to exception reports, pursuant to NYSE Rule 382(e) and NASD Rule 3230(c) have been
completed. 

27.13    Force Majeure.    Neither party shall be liable for any loss caused, directly or indirectly, resulting from any
circumstances beyond its reasonable control, including without limitation, labor disputes, riots, sabotage, insurrection, fires, flood, storm, explosions, earthquakes, electrical power failures, acts
of God or nature, war, both declared or undeclared, or acts of terrorism. 

27.14    Audio Taping of Telephone Conversations.    Each party understands that for quality control, dispute resolution or other
business purposes, the parties may record some or all telephone conversations between them. Each party hereby consents to such recording and will inform its 

19

 

employees,
representatives and agents of this practice. It is further understood that all such conversations are deemed to be solely for business purposes. 

        IN
WITNESS WHEREOF the parties have hereto affixed their hands and seals by their duly authorized officers on the day and date first above written. 

        This Agreement contains a pre-dispute arbitration clause in Paragraph 26. The parties acknowledge receiving a copy of this
Agreement.

BROKER:

By:

Title:

FORTIS
SECURITIES LLC 

By:

Title:

20

QuickLinks

FULLY DISCLOSED CLEARING AGREEMENT OF KEEFE, BRUYETTE & WOODS, INC.Exhibit
10.5

 

 

AGREEMENT OF LEASE

 

between

 

THE EQUITABLE LIFE ASSURANCE

SOCIETY OF THE UNITED STATES

 

and

 

ELAS SECURITIES ACQUISITION CORP.,

 

Landlord

 

and

 

KEEFE, BRUYETTE & WOODS, INC.,

 

Tenant

 

787 Seventh Avenue

New York, New York 10019

 

Shearman & Sterling

599 Lexington Avenue

New York, New York 10022

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1
  DEMISE, PREMISES, TERM, RENT

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2
  USE AND OCCUPANCY

  	
   

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3
  ALTERATIONS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4
  REPAIRS-FLOOR LOAD

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5
  WINDOW CLEANING

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6
  REQUIREMENTS OF LAW

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7
  SUBORDINATION

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8
  RULES AND REGULATIONS

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9
  INSURANCE, PROPERTY LOSS OR DAMAGE; REIMBURSEMENT

  	
   

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10
  DESTRUCTION-FIRE OR OTHER CAUSE

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11
  EMINENT DOMAIN

  	
   

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12
  ASSIGNMENT SUBLETTING MORTGAGE, ETC.

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13
  ELECTRICITY

  	
   

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14
  ACCESS TO PREMISES

  	
   

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15
  CERTIFICATE OF OCCUPANCY

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16
  DEFAULT

  	
   

  	
  55

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17
  REMEDIES AND DAMAGES

  	
   

  	
  58

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18
  FEES AND EXPENSES

  	
   

  	
  60

  

 

i

 

	
  TABLE OF CONTENTS

  	
   

  	
   

  
	
  (continued

  	
   

  	
   

  
	
   

  	
   

  	
  Page

  
	
  ARTICLE 19
  NO REPRESENTATIONS BY LANDLORD

  	
   

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20
  END OF TERM

  	
   

  	
  61

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21
  QUIET ENJOYMENT

  	
   

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22
  FAILURE TO GIVE POSSESSION

  	
   

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23
  NO WAIVER

  	
   

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24
  WAIVER OF TRIAL BY JURY

  	
   

  	
  63

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25
  INABILITY TO PERFORM

  	
   

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26
  BILLS AND NOTICES

  	
   

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27 ESCALATION

  	
   

  	
  65

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28 SERVICES

  	
   

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29
  PARTNERSHIP TENANT

  	
   

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30 VAULT SPACE

  	
   

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31 SECURITY

  	
   

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32 CAPTIONS

  	
   

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33 PARTIES BOUND

  	
   

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34 BROKER

  	
   

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 35 INDEMNITY

  	
   

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE 36 ADJACENT EXCAVATION-SHORING

  	
   

  	
  85

  
	
   

  	
   

  	
   

  
	
  ARTICLE 37 MISCELLANEOUS

  	
   

  	
  85

  

 

ii

 

	
  TABLE OF CONTENTS

  	
   

  	
   

  
	
  (continued)

  	
   

  	
   

  
	
   

  	
   

  	
  Page

  
	
  ARTICLE 38 RENT CONTROL

  	
   

  	
  88

  
	
   

  	
   

  	
   

  
	
  SCHEDULE A

  	
  RULES AND REGULATIONS

  	
   

  	
  A-1

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULE B

  	
  CLEANING SPECIFICATIONS

  	
   

  	
  B-1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT “A”

  	
  PREMISES

  	
   

  	
  “A”-1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT “B”

  	
  HVAC SPECIFICATIONS

  	
   

  	
  “B”-1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT “C”

  	
  CERTIFICATE OF OCCUPANCY

  	
   

  	
  “C”-1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT “D”

  	
  PREMISES DELIVERY NOTICE

  	
   

  	
  “D”-1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT “E”

  	
  INCLUDED PERSONAL PROPERTY

  	
   

  	
  “E”–1

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT “F”

  	
  ACKNOWLEDGEMENT AND AGREEMENT

  	
   

  	
  “F”-1

  

 

iii

 

AGREEMENT
OF LEASE (this “Lease”), made as of the 12th day of November,
2001, between Landlord and Tenant.

 

W
I  T  N  E  S  S  E  T H:

 

The
parties hereto, for themselves, their legal representatives, successors and
assigns, hereby covenant as follows.

 

DEFINITIONS

 

Capitalized
terms used herein and not defined elsewhere in this Lease shall have the
meanings set forth below, each of which definition shall be included within,
and an integral and substantive part of, the terms, covenants and provisions of
this Lease:

 

“Acknowledgement
and Agreement” shall have the meaning set forth in Section 12.5
hereof.

 

“AAA”
shall have the meaning set forth in Section 37.5 hereof.

 

“ADA”
shall mean the Americans with Disabilities Act of 1990, Public Law 101-336,
U.S.C. §§ 12101 et seq. as the same may be hereafter amended from
time to time, together with all regulations and guidelines promulgated pursuant
thereto or in connection therewith.

 

“Affiliate”
shall mean, with respect to Landlord, a corporation or other entity which shall
(1) control, (2) be under the control of, or (3) be under common
control with Landlord. As used herein, the term “control” shall mean the
ownership of fifty percent (50%) or more of the outstanding voting stock of a
corporation or other majority equity and control interest if such entity is not
a corporation.

 

“Alterations”
shall mean alterations, installations, improvements, additions or other
physical work or changes in or about the Premises.

 

“Alterations
Rules and Regulations” shall mean the rules and regulations relating to
Alterations promulgated by Landlord regarding Alterations and such other and
further reasonable rules and regulations regarding Alterations as Landlord or
Landlord’s agents may from time to time adopt in accordance with the provisions
of Article 8 hereof. Landlord and Tenant acknowledge that Tenant
has been provided with a copy of the Alterations Rules and Regulations as the
same exist on the date of this Lease.

 

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

 

“Applicable
Rate” shall mean the lesser of (x) two (2) percentage points above the
then current Base Rate, and (y) the maximum rate permitted by applicable
law.

 

“Assessed
Valuation” shall have the meaning set forth in Section 27.1
hereof.

 

 

“Assignment
Expenses” shall have the meaning set forth in Section 12.8(B)
hereof.

 

“Assignment
Proceeds” shall have the meaning set forth in Section 12.8
hereof.

 

“Assignment
Statement” shall have the meaning set forth in Section 12.8
hereof.

 

“Assignment
Termination Date” shall have the meaning set forth in Section 12.8(B)
hereof.

 

“Bankruptcy
Code” shall mean 11 U.S.C. Section 101 et seq., or any statute
of similar nature and purpose.

 

“Base
Operating Expenses” shall have the meaning set forth in Section 27.1
hereof.

 

“Base
Operating Year” shall have the meaning set forth in Section 27.1
hereof.

 

“Base
Rate” shall mean the rate of interest publicly announced from time to time
by Citibank, N.A., or its successor, as its “base rate” (or such other term as
may be used by Citibank, N.A., from time to time, for the rate presently
referred to as its “base rate”).

 

“Base
Taxes” shall have the meaning set forth in Section 27.1 hereof.

 

“Broker”
shall have the meaning set forth in Article 34 hereof.

 

“Building”
shall mean all the buildings, equipment and other improvements and
appurtenances of every kind and description now located or hereafter erected,
constructed or placed upon the land and any and all alterations and
replacements thereof, additions thereto and substitutions therefor, known by
the address of 787 Seventh Avenue, New York, New York.

 

“Building
Systems” shall mean the mechanical, gas, electrical, sanitary, heating, air
conditioning, ventilating, elevator, plumbing, life-safety and other service
systems of the Building except for the distribution portions located within the
Premises.

 

“Business
Date” shall have the meaning set forth in Section 28.2 hereof.

 

“Business
Days” shall mean all days, excluding Saturdays, Sundays and all days
observed by either the State of New York or the Federal Government or by the
labor unions servicing the Building as legal holidays.

 

“Certificate
of Occupancy” shall have the meaning set forth in Section 15
hereof.

 

“Commencement
Date” shall shall mean the date on which Landlord shall deliver the
Premises to Tenant in accordance with the terms and conditions of Article 1
hereof.

 

“Consumer
Price Index” shall mean the Consumer Price Index for All Urban Consumers
published by the Bureau of Labor Statistics of the United States Department of
Labor, New York, N.Y. - Northeastern N.J. Area, All Items (1982-84=100), or any
successor 

 

2

 

index thereto, appropriately adjusted. In the event that the Consumer
Price Index is converted to a different standard reference base or otherwise
revised, the determination of adjustments provided for herein shall be made
with the use of such conversion factor, formula or table for converting the
Consumer Price Index as may be published by the Bureau of Labor Statistics or,
if said Bureau shall not publish the same, then with the use of such conversion
factor, formula or table as may be published by Prentice-Hall, Inc., or any
other nationally recognized publisher of similar statistical information. If
the Consumer Price Index ceases to be published, and there is no successor
thereto, such other index as Landlord and Tenant shall agree upon in writing
shall be substituted for the Consumer Price Index. If Landlord and Tenant are
unable to agree as to such substituted index, such matter shall be submitted to
the American Arbitration Association or any successor organization for determination
in accordance with the regulations and procedures thereof then obtaining for
commercial arbitration. The costs of such arbitration shall be shared equally
by Landlord and Tenant.

 

“Current
Year” shall have the meaning set forth in Section 27.4 hereof.

 

“Deficiency”
shall have the meaning set forth in Section 17.2 hereof.

 

“Eighth
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

“Electricity
Additional Rent” shall have the meaning set forth in Section 13.2
hereof.

 

“Electricity
Fee” shall have the meaning set forth in Section 13.4 hereof.

 

“Escalation
Rent” shall mean either individually or collectively, as the case may be,
the Tax Payment and the Operating Payment.

 

“Estimated
Completion Time” shall have the meaning set forth in Section 10.3
hereof.

 

“Event
of Default” shall have the meaning set forth in Section 16.1
hereof.

 

“Expiration
Date” shall mean the Fixed Expiration Date or such earlier or later date on
which the Term shall sooner or later end pursuant to any of the terms,
conditions or covenants of this Lease or pursuant to law.

 

“Fifth
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

“First
Holdover Period” shall have the meaning set forth in Section 20
hereof.

 

“First
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

“First
Rental Period” shall mean the period commencing on the Rent Commencement
Date and ending on the five-year anniversary of the Rent Commencement Date (as
hereinafter defined).

 

“Fixed
Expiration Date” shall have the meaning set forth in Section 1.1
hereof.

 

3

 

“Fixed
Rent” shall have the meaning set forth in Section 1.1 hereof.

 

“Fourth
Floor Internal Stairs” shall have the meaning set forth in Section 1.1
hereof.

 

“Fourth
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

“Governmental
Authority (Authorities)” shall mean the United States of America, the State
of New York, the City of New York, any political subdivision thereof and any
agency, department, commission, board, bureau or instrumentality of any of the
foregoing, now existing or hereafter created, having jurisdiction over the Real
Property or any portion thereof.

 

“HVAC”
shall mean heat, ventilation and air conditioning.

 

“HVAC
Systems” shall mean the Building Systems providing HVAC.

 

“Indemnitees”
shall mean Landlord, Mortgagee and Lessor, the partners or members comprising
Landlord, Mortgagee and Lessor and the partners, shareholders, members,
officers, directors, employees and agents (including, without limitation,
leasing and managing agents) of Landlord, Mortgagee and Lessor and of the
partners thereof.

 

“Initial
Alterations” shall mean the Alterations to be made by Tenant to initially
prepare the Premises for Tenant’s occupancy.

 

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

 

“Landlord”,
on the date as of which this Lease is made, shall mean 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, but after a sale or transfer of the Building or Real Property, “Landlord”
shall mean the fee owner of the Building or Real Property, as the case may be,
and if there shall exist a Superior Lease, the lessee thereunder.

 

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

 

“Lessor(s)”
shall mean a lessor under a Superior Lease.

 

“Letter
of Credit” shall have the meaning set forth in Section 31.1 hereof.

 

“Letter
of Credit Termination Notice” shall have the meaning set forth in Section
31.1 hereof.

 

“Local
Law 58/97” shall have the meaning set forth in Section 1.1
hereof.

 

“Mortgage(s)”
shall mean any trust indenture or mortgage which may now or hereafter affect
the Real Property, the Building or any Superior Lease and the leasehold
interest created thereby, and all renewals, extensions, supplements,
amendments, modifications,

 

4

 

consolidations and replacements thereof or thereto, substitutions
therefor, and advances made thereunder.

 

“Mortgagee(s)”
shall mean any trustee, mortgagee or holder of a Mortgage.

 

“Nondisturbance
Agreement” shall have the meaning set forth in Section 7.1
hereof.

 

“Office
(offices)” shall mean any premises other than premises used as a store or
stores for the sale or display, at any time, of goods, wares or merchandise, of
any kind, or a restaurant, shop, booth, bootblack or other stand, barber shop,
or for other similar purposes or for manufacturing.

 

“Operating
Expenses” shall have the meaning set forth in Section 27.1
hereof.

 

“Operating
Payment” shall have the meaning set forth in Section 27.4
hereof.

 

“Operating
Statement” shall have the meaning set forth in Section 27.1
hereof.

 

“Operating
Year” shall have the meaning set forth in Section 27.1 hereof.

 

“Operation
of the Property” shall mean the operation, maintenance, repair, protection,
improvement and management of the Real Property or the Building and the curbs,
sidewalks and areas adjacent thereto.

 

“Overtime
Periods” shall have the meaning set forth in Section 28.3
hereof.

 

“Parties”
shall have the meaning set forth in Section 37.2 hereof.

 

“Partner”
or “partner” shall mean any general partner of Tenant.

 

“Partnership
Tenant” shall have the meaning set forth in Article 29 hereof.

 

“Permitted
Licensee” shall have the meaning set forth in Section 12.10 hereof.

 

“Person(s)
or person(s)” shall mean any natural person or persons, a partnership, a
corporation and any other form of business or legal association or entity.

 

“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.

 

“Prevailing
Rate” shall have the meaning set forth in Section 12.6 hereof.

 

“Qualified
Sublease” shall have the meaning set forth in Section 12.7 (C)
hereof.

 

“Qualified
Subtenant” shall have the meaning set forth in Section 12.7(C)
hereof.

 

5

 

“Real
Property” shall mean the Building, together with the plot of land upon
which it stands.

 

“Recapture
Assignment” shall have the meaning set forth in Section 12.8(B)
hereof.

 

“Recapture
Assignment Expenses” shall have the meaning set forth in Section 12.8(D)
hereof.

 

“Recapture
Assignment Profit” shall have the meaning set forth in Section 12.8(D)
hereof.

 

“Recapture
Assignment Rent” shall have the meaning set forth in Section 12.8(D)
hereof.

 

“Recapture
Assignment Rent Per Square Foot” shall have the meaning set forth in Section 12.8(D)
hereof.

 

“Recapture
Space” shall have the meaning set forth in Section 12.6 hereof.

 

“Recapture
Sublease” shall have the meaning set forth in Section 12.6
hereof.

 

“Related
Entity” shall have the meaning set forth in Section 12.4
hereof.

 

“Rent
Commencement Date” shall mean the date which is sixty (60) days after the
Commencement Date.

 

“Premises
Delivery Notice” shall have the meaning set forth in Section 1.2
hereof.

 

“Rent
Per Square Foot” shall have the meaning set forth in Section 12.7
hereof.

 

“Rental”
shall mean and be deemed to include Fixed Rent, Escalation Rent, all additional
rent and any other sums payable by Tenant hereunder.

 

“Requirements”
shall mean all present and future laws, rules, orders, ordinances, regulations,
statutes, requirements, codes and executive orders, extraordinary as well as
ordinary, of all Governmental Authorities now existing or hereafter created,
and of any and all of their departments and bureaus, and of any applicable fire
rating bureau, or other body exercising similar functions, affecting the Real
Property or any portion thereof, or any street, avenue or sidewalk comprising a
part of or in front thereof or any vault in order under the same, or requiring
removal of any encroachment, or affecting the maintenance, use or occupation of
the Real Property or any portion thereof.

 

“Rules
and Regulations” shall mean the rules and regulations annexed hereto and
made a part hereof as Schedule A, and such other and further
reasonable rules and regulations as Landlord or Landlord’s agents may from time
to time adopt on at least ten (10) Business Days’ prior written notice, subject
to Tenant’s rights to dispute the reasonableness thereof as provided in Article 8
hereof.

 

6

 

“Second
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

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

 

“Seventh
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

“Sixth
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

“Space
Factor” shall mean 51,530.

 

“Specialty
Alterations” shall mean Alterations consisting of kitchens (as opposed to
warming pantries), executive bathrooms, vaults, vertical and/or horizontal
transportation systems, dumbwaiters, pneumatic tubes, safes and other
nonstandard office Alterations of a structural nature, it being agreed that
Specialty Alterations shall not include open plan office space installed on
raised floors, raised flooring, communication closets (as opposed to data
centers) and conference rooms, except notwithstanding the foregoing, any
Alteration which is located within any conference room and which otherwise
would constitute a Specialty Alteration as expressly stated in the definition
hereof shall be deemed to be a Specialty Alteration.

 

“Sublease
Expenses” shall have the meaning set forth in Section 12.7
hereof.

 

“Sublease
First Decision Date” shall have the meaning set forth in Section 12.6(B)
hereof.

 

“Sublease
Profit” shall have the meaning set forth in Section 12.7
hereof.

 

“Sublease
Rent” shall have the meaning set forth in Section 12.7 hereof.

 

“Sublease
Rent Per Square Foot” shall have the meaning set forth in Section 12.7
hereof.

 

“Sublease
Second Decision Date” shall have the meaning set forth in Section 12.6(B)
hereof.

 

“Sublease
Statement” shall have the meaning set forth in Section 12.6
hereof.

 

“Sublease
Term Sheet” shall have the meaning set forth in Section 12.6(B)
hereof.

 

“Sub-sublease
Rent Per Square Foot” shall have the meaning set forth in Section 12.7
hereof.

 

“Subtenant
Nondisturbance Agreement” shall have the meaning set forth in Section 12.7
hereof.

 

“Superior
Lease(s)” shall mean all ground or underlying leases of the Real Property
or the Building heretofore or hereafter made and all renewals, extensions,
supplements, amendments and modifications thereof.

 

7

 

“Taxes”
shall have the meaning set forth in Section 27.1 hereof.

 

“Tax
Payment” shall have the meaning set forth in Section 27.2 hereof.

 

“Tax
Statement” shall have the meaning set forth in Section 27.1
hereof.

 

“Tax
Year” shall have the meaning set forth in Section 27.1 hereof.

 

“Tenant”,
on the date as of which this Lease is made, shall mean Keefe, Bruyette &
Woods, Inc., having an office at c/o Wachtell, Lipton, Rosen & Katz, 51
West 52nd Street, New York, New York 10019, Attn: Mitchell Kleinman,
Esq., but thereafter “Tenant” shall mean only the tenant under this Lease at
the time in question except for purposes of Section 12(E) hereof; provided,
however, that the originally named Tenant, any successor thereto or any
assignee shall not be released from liability hereunder in the event of any
assignment of this Lease.

 

“Tenant
Fund” shall have the meaning set forth in Section 3.7 hereof.

 

“Tenant
Named Herein” shall mean Keefe, Bruyette & Woods, Inc. and any Related
Entity of Keefe, Bruyette & Woods or other successor pursuant to Section
12.5 hereof.

 

“Tenant’s
Property” shall mean Tenant’s movable fixtures and movable partitions, telephone
and other equipment, furniture, furnishing, decorations and other items of
personal property.

 

“Tenant’s
Share” shall mean three and four hundred twenty-four one-thousandths
percent (3.424%), 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.

 

“Tentative
Monthly Escalation Charge” shall have the meaning set forth in Section 27.4
hereof.

 

“Term”
shall mean a term which shall commence on the Commencement Date and shall
expire on the Expiration Date.

 

“Third
Reduction Date” shall have the meaning set forth in Section 31.2
hereof.

 

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

 

“Unavoidable
Delays” shall have the meaning set forth in Article 25 hereof.

 

8

 

ARTICLE 1

DEMISE,
PREMISES, TERM, RENT

 

Section 1.1             Landlord hereby leases to Tenant
and Tenant hereby hires from Landlord the Premises for the Term to commence on
the date hereof (the “Commencement Date”) and to end on the fifteenth
anniversary of the Commencement Date (the “Fixed Expiration Date”), at
an annual rent (the “Fixed Rent”) of:

 

(1)           for the First Rental Period, an amount equal to Three
Million Eight Hundred Sixty-Four Thousand Seven Hundred Fifty and 00/100
Dollars ($3,864,750.00),

 

(2)           for the Second Rental Period, Four Million One Hundred
Twenty-Two Thousand Four Hundred and 00/100 Dollars ($4,122,400.00), and

 

(3)           for the Third Rental Period, Four Million Three Hundred
Eighty Thousand Fifty and 00/100 Dollars ($4,380,050.00)

 

which Tenant agrees to pay in lawful money of the
United States which shall be legal tender in payment of all debts and dues,
public and private, at the time of payment, in equal monthly installments in
advance, on the first (1st) day of each calendar month during the
Term commencing on the Rent Commencement Date, at the office of Landlord or
such other place as Landlord may designate, without any set-off, offset,
abatement or deduction whatsoever except as otherwise provided herein. At the
request of Landlord, Fixed Rent shall be payable when due by wire transfer of
funds to an account designated from time to time by Landlord; provided, however,
that Landlord shall provide wiring instructions to Tenant not less than thirty
(30) days prior to the date upon which the first such monthly installment of
Fixed Rent to be wired shall be due and payable. Tenant hereby agrees to accept
possession of the Premises in its “as is” condition on the Commencement Date
vacant of personal property (except for those items of personal property set
forth on Exhibit “E” attached hereto and made a part hereof
(the “Included Personal Property”)), unoccupied and free of any leases
or tenancies, and in broom clean condition; provided, however,
that 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”) in accordance with
applicable Requirements (“Landlord’s Work”). Landlord agrees that,
notwithstanding the foregoing, on the Commencement Date the Premises shall be
in compliance with all Requirements, except to the extent 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 will accept the Included Personal Property as of the
Commencement Date in its “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 

 

9

 

during the Term to deliver notice to Landlord
indicating that Tenant no longer desires to lease 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).

 

Section 1.2             (a)  Promptly after
the occurrence of the Commencement Date, 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 (the “Premises Delivery Notice,”) memorializing
such Commencement Date and the Rent Commencement Date; provided, however,
the failure to deliver the Premises Delivery Notice shall not affect the
occurrence of the Commencement Date, Rent Commencement Date, the Fixed
Expiration Date or the rights and obligations of the parties under this Lease.

 

(b)           If
the Rent Commencement Date shall occur on a date other than the first (1st)
day of any calendar month, on the Rent Commencement Date Tenant shall pay to
Landlord an amount equal to the product of Ten Thousand Seven Hundred
Thirty-Five and 42/100 Dollars ($10,735.42) multiplied by the number of
calendar days in the period from the Rent Commencement Date to the last day of
the month in which the Rent Commencement Date shall occur, both dates
inclusive.

 

ARTICLE 2

USE
AND OCCUPANCY

 

Section 2.1             Tenant shall use and occupy the
Premises as general and executive offices (including, in each instance, uses
incidental thereto as described in Section 2.4) and for no other
purpose.

 

Section 2.2             Tenant shall not use the
Premises or any part thereof, or permit the Premises or any part thereof to be
used (1) for the business of photographic, multilith or multigraph
reproductions or offset printing, except in connection with, either directly or
indirectly, Tenant’s own business and/or activities, (2) for retail
activities of a bank, trust company, depository, guarantee or safe deposit
business (for “off the street” retail activities to the general public),
(3) as a savings bank, a savings and loan association, or as a loan
company (for “off the street” retail activities to the general public),
(4) for the sale of travelers checks, money orders, drafts, foreign
exchange or letters of credit or for the receipt of money for transmission (for
“off the street” retail activities to the general public), (5) by the
United States government, the City or State of New York, any foreign
government, the United Nations or any agency or department of any of the
foregoing, (6) for the preparation, dispensing or consumption of food or
beverages in any manner whatsoever, except for consumption by Tenant’s
officers, employees and business guests, (7) as an employment agency,
executive search firm or similar 

 

10

 

enterprise, labor union, school, or vocational training center (except
for the training of employees of Tenant intended to be employed at the
Premises), or (8) as a barber shop or beauty salon.

 

Section 2.3             Any interior windows which are
visible from the atrium, gallery or lobby space in the Building shall not be
covered or obstructed by Tenant, nor shall any items, articles, or signs,
including, without limitation, any of Tenant’s Property, be placed, installed
or affixed in a manner so as to be visible from the atrium, gallery or lobby
space in the Building, except with the prior written consent of Landlord, which
consent shall not be unreasonably withheld or delayed.

 

Section 2.4             As incidental to the use of the
Premises for offices as permitted by Section 2.1, portions of the
Premises may also be used for (1) electronic data processing equipment, word
processing equipment and business machines, (2) duplicating equipment, (3) the
sale of snack foods, beverages and other convenience items to employees and visitors
of Tenant by vending machines provided any such vending machine if it dispenses
any beverage or other liquids or refrigerates shall have a waterproof pan
located thereunder connected to a drain, (4) pantries, (5) eating areas, (6)
food warmers, (7) mail rooms, (8) libraries, (9) board and conference rooms,
(10) the storage of equipment and books, record, files and other items, (11)
automatic teller machines for use only by the employees of Tenant employed at
the Premises, (12) a trading floor and trading support systems, and (13) other
uses incidental to Tenant’s use of the Premises for general and executive
offices which are commensurate with the quality and character of the Building
provided such uses are subject to, and in compliance with, the Certificate of
Occupancy, all applicable Requirements, and the terms and conditions of this
Lease.

 

ARTICLE 3

ALTERATIONS

 

Section 3.1             (A)  Except as set forth in Section 3.5
hereof, Tenant shall not make any Alterations including, without limitation,
the Initial Alterations, without Landlord’s prior consent. Landlord agrees not
to unreasonably withhold or delay its consent to any proposed Alterations
including, without limitation, the Initial Alterations, provided that such
Alterations (i) are not directly visible from the outside of the Building,
(ii) do not affect any part of the Building other than the Premises,
(iii) do not adversely affect the Building Systems, (iv) do not
adversely affect any service required to be furnished by Landlord to Tenant or
to any other tenant or occupant of the Building or adversely affect the proper
functioning of any Building System, (v) do not affect the certificate of
occupancy for the Building or for the Premises, and (vi) do not adversely
affect the structural components of the Building.

 

(B)           (1)  Prior to making any Alterations including,
without limitation, the Initial Alterations, Tenant shall (i) if required
hereunder (and not covered by the provisions of Section 3.5
hereof), submit to Landlord detailed plans and specifications (including
layout, architectural, mechanical and structural drawings) for each proposed
Alteration and shall not commence any such Alteration without first obtaining
Landlord’s approval of such plans and specifications, which in the case of
Alterations which meet the criteria set forth above shall not be unreasonably
withheld, delayed or conditioned, (ii) supply such additional information 

 

11

 

regarding the Alteration as Landlord shall reasonably request,
(iii) at Tenant’s expense, obtain all permits, approvals and certificates
required by any Governmental Authorities, and (iv) furnish to Landlord
duplicate policies, or certificates thereof of worker’s compensation (covering
all persons to be employed by Tenant, and Tenant’s contractors and
subcontractors in connection with such Alteration) and comprehensive public
liability (including property damage coverage) insurance in such form, with
such companies, for such periods and in such amounts as Landlord may reasonably
approve, naming Landlord and its agents, any Lessor and any Mortgagee, as
additional insureds. Landlord agrees that provided that Tenant shall furnish
Landlord with the final detailed plans and specifications as set forth in
clause (i) above with respect to any Alteration, Landlord shall approve or
disapprove such plans and specifications within fifteen (15) Business Days
after such request is made and such plans and specifications are furnished to
Landlord (such disapproval to include a written basis for same). If Landlord
shall approve such plans and specifications, the notice indicating such
approval shall also set forth which, if any, of the proposed Alterations
covered by such plans and specifications shall be considered by Landlord as
Specialty Alterations and no Alteration shall be considered a Specialty
Alteration unless so indicated by Landlord in such notice. If Landlord shall
neither approve nor disapprove of a proposed Alteration within such fifteen
(15) Business Day period, and Tenant shall send a second notice of such request
and information and Landlord shall neither approve nor disapprove of such
Alteration within seven (7) Business Days after such receipt of such second
notice request, Landlord shall be deemed to have approved said plans and
specifications with respect to such proposed Alteration. Notwithstanding the
foregoing two sentences, Landlord agrees that if Landlord shall disapprove any
plans and specifications submitted by Tenant with respect to any Alterations
and Tenant shall re-submit revised final plans and specifications for such
Alteration, Landlord shall approve or disapprove such revised plans and
specifications within five (5) Business Days after such re-submission is made
and such revised plans and specifications are furnished to Landlord; it being
agreed that if Landlord shall neither approve nor disapprove of such revised
plans and specifications within five (5) Business Days after receipt of such
revised plans and specifications, Landlord shall be deemed to have approved
such revised plans and specifications with respect to such proposed Alteration,
provided that Tenant shall have made no changes to the plans and specifications
originally submitted to Landlord other than in response to Landlord’s initial
comments. Upon completion of such Alteration, Tenant, at Tenant’s expense,
shall obtain certificates of final approval of such Alteration required by any
Governmental Authority and shall furnish Landlord with copies thereof (it being
agreed that all filings with Governmental Authorities to obtain such permits,
approvals and certificates shall be made at Tenant’s expense, by a Person
designated by Landlord, provided that such Person shall be independent,
reasonably capable to act in such capacity, and shall charge commercially
competitive rates), and Landlord shall cooperate with Tenant in accordance with
the provisions of Section 3.3 hereof, together with the “as-built”
plans and specifications (including reproducible mylars and microfiche index
cards and such plans shall be in a computerized DXF format) for such
Alterations, and copies of all asbestos surveys and reports, if any, prepared
by Tenant’s asbestos consultants or contractors in connection with, or arising
out of, the performance of such Alteration. For purposes of this Article 3,
all final detailed plans and specifications with respect to any Alterations
which include legible “field notes” and are delivered to Landlord in CAD format
shall be acceptable to Landlord as “as-built” plans and specifications. All
Alterations shall be made and performed substantially in accordance with the
plans and specifications therefor as approved (or deemed approved) by Landlord
(if such 

 

12

 

Alteration shall have been subject to Landlord’s approval), and in
compliance in all material respects with all Requirements, the Rules and
Regulations, and the Alterations Rules and Regulations. All materials and
equipment to be incorporated in the Premises as a result of any Alterations or
a part thereof shall be first quality and no such materials or equipment (other
than Tenant’s Property) shall be subject to any lien, encumbrance, chattel
mortgage or title retention or security agreement. In addition, no Alteration
at a cost for labor and materials (as reasonably estimated by Landlord’s
architect, engineer or contractor) in excess of One Hundred Thousand and 00/100
Dollars ($100,000.00) (which amount shall be increased on the third (3rd)
anniversary of the Commencement Date and annually thereafter by the annual
percentage increase, if any, in the Consumer Price Index from that in effect on
the immediately preceding anniversary of the Commencement Date), either
individually or in the aggregate with any other Alteration constructed in any
twelve (12) month period, shall be undertaken prior to Tenant’s delivering to
Landlord either (i) a performance bond and labor and materials payment
bond (issued by a surety company and in form reasonably satisfactory to
Landlord), each in an amount equal to 110% of such estimated cost, or
(ii) such other security as shall be reasonably satisfactory to Landlord;
provided, however, the foregoing shall not apply to the Initial Alterations or
any other Alteration performed by Tenant provided that Tenant has a net worth
in accordance with generally accepted accounting principles of no less than One
Hundred Million and 00/100 Dollars ($100,000,000.00) and provides Landlord with
reasonably satisfactory evidence thereof. If, as a result of any Alterations
performed by Tenant, including, without limitation, the Initial Alterations,
any alterations are required to be performed in or made to any portion of the
Building or the Real Property other than the Premises in order to comply with
any Requirement(s), which alterations would not otherwise have had to be
performed or made pursuant to the applicable Requirement(s) at such time,
Landlord, at Tenant’s sole reasonable cost and expense, may perform or make
such alterations and take such actions as Landlord shall deem reasonably
necessary. All Alterations requiring Landlord’s consent shall be performed only
under the supervision of an independent licensed architect reasonably
satisfactory to Landlord.

 

(2)           Landlord
reserves the right (subject to Landlord’s obligations as set forth in this Section
3.1) to disapprove any plans and specifications in part, to reserve
approval of items shown thereon pending its review and approval of other plans
and specifications, and to condition its approval (which shall be reasonable
where Landlord has agreed to be reasonable with respect to an Alteration in
this Article 3) upon Tenant making reasonable revisions to the
plans and specifications or supplying additional information reasonably
requested by Landlord. Any review or approval by Landlord of any plans and/or
specifications or preparation of any plans by an architect or engineer
designated by Landlord with respect to any Alteration is solely for Landlord’s
benefit, and without any representation or warranty whatsoever to Tenant or any
other Person with respect to the compliance thereof with any Requirements, the
adequacy, correctness or efficiency thereof or otherwise.

 

(C)           Tenant
shall be permitted to perform Alterations at Tenant’s cost and expense, 24
hours a day, 7 days a week, provided that such work shall not materially
interfere with or interrupt the operation and maintenance of the Building or
the performance by Landlord of repairs, alterations or other work in the
Building, or unreasonably interfere with or interrupt the use and occupancy of
the Building by other tenants for space in the Building, and if such work shall
interfere or interrupt as aforesaid, such Alterations shall be performed at

 

13

 

Tenant’s expense and at such times and in such manner as Landlord may
from time to time reasonably designate; it being expressly understood and
agreed that all chopping, coring and any other work affecting the slab shall be
performed after 6:00 p.m. and before 8:00 a.m. on Business Days (or
at any hour on days other than Business Days), unless otherwise designated by
Landlord. All Alterations and all Tenant’s Property installed by Tenant in and
to the Premises which may be made by Tenant at its own cost and expense prior
to and during the Term, shall remain the property of Tenant, and upon the
Expiration Date or earlier end of the Term, may be removed from the Premises by
Tenant at Tenant’s option; provided, however, that Tenant shall
repair and restore in a good and workerlike manner to good condition any damage
to the Premises or the Building caused by such removal. Tenant may, at its
option, remove an Alteration at any time during the Term, provided Tenant shall
otherwise comply with the provisions of this Lease. All Alterations in and to
the Premises which are not removed by Tenant in accordance with the provisions
of this Section 3.1 (C) shall upon the expiration or earlier
termination of this Lease become the property of Landlord. Notwithstanding the
foregoing, however, Landlord, upon notice given at least sixty (60) days prior
to the Expiration Date or upon such shorter notice as is reasonable under the
circumstances upon the earlier expiration of the Term, may require Tenant to
remove any Tenant’s Property and/or Specialty Alterations, and to repair and
restore in a good and workerlike manner to good condition any damage to the
Premises or the Building caused by the removal of Tenant’s Property, and with
respect to any such Specialty Alterations (other than the Fourth Floor Internal
Stairs), to repair and restore in a good and workerlike manner to a demolished
shell condition the area of the Premises affected by such removal, and to
repair and restore to a good condition any damage to the Building caused by
such removal.

 

(D)          (1)  All Alterations shall be performed at Tenant’s
option by either (i) Landlord’s contractor(s), (ii) a contractor
Tenant shall select from a list of approved independent contractors and
subcontractors furnished by Landlord to Tenant (containing at least the lesser
of (x) three contractors or subcontractors, as the case may be, or
(y) the number of contractors or subcontractors set forth on the list as
of the date hereof), or (iii) contractors, subcontractors or mechanics
approved by Landlord (which approval, subject to the provisions of subsection D(2)
hereof, shall not be unreasonably withheld, provided that such contractor,
subcontractor or mechanic is a member of the appropriate trade labor union) at
Tenant’s expense. If Tenant engages any contractor or subcontractor set forth
on the list referred to in item (ii) above, Tenant shall not be required to
obtain Landlord’s consent for such contractor or subcontractor unless, prior to
entering into a contract with such contractor or subcontractor, Landlord shall
notify Tenant that such contractor or subcontractor has been removed from the
list. Landlord agrees that provided that Tenant shall furnish Landlord with all
information reasonably requested by Landlord with respect to a proposed
contractor or subcontractor, Landlord shall either approve or disapprove such
contractor or subcontractor within ten (10) Business Days after such request is
made and such information is furnished to Landlord. If Landlord shall neither
approve nor disapprove of a proposed contractor or subcontractor within such
ten (10) Business Day period, and Tenant shall send a second notice of such
request and information and Landlord shall neither approve nor disapprove of a
proposed contractor or subcontractor within five (5) Business Days after such
receipt of such second notice request, Landlord shall be deemed to have
approved such proposed contractor or subcontractor. Prior to making each
Alteration, at Tenant’s request, Landlord shall within five (5) Business Days
furnish Tenant with a list of independent contractors who may perform
Alterations to the 

 

14

 

Premises on behalf of Tenant. If Tenant engages any contractor set
forth on the list, Tenant shall not be required to obtain Landlord’s consent
for such contractor unless, prior to entering into a contract with such
contractor or the commencement of work by the contractor, Landlord shall notify
Tenant that such contractor has been removed from the list.

 

(2)           Notwithstanding
the foregoing, with respect to any Alteration attaching to or tying into any
Building System which shall consist of the Building management system, the
Class E, electrical, sprinkler, HVAC or life-safety systems or any
structural component of the Building, (i) Tenant shall select a contractor
or subcontractor from a list of approved independent contractors and
subcontractors (each of whom shall charge commercially competitive rates)
furnished by Landlord to Tenant (containing at least the lesser of
(x) three contractors or subcontractors or (y) the number of
contractors or subcontractors set forth on the list as of the date hereof) and
(ii) the Alteration shall, at Tenant’s reasonable cost and expense, be
designed by an engineer (who shall charge commercially competitive rates)
approved by Landlord in its sole and absolute discretion.

 

(E)           Any
mechanic’s lien filed against the Premises or the Real Property for work
claimed to have been done for, or materials claimed to have been furnished to,
Tenant by any party other than Landlord shall be discharged by Tenant within
thirty (30) days after Tenant shall have received notice thereof, at Tenant’s
expense, by payment or filing the bond required by law. Tenant shall not, at
any time prior to or during the Term, directly or indirectly employ, or permit
the employment of, any contractor, mechanic or laborer in the Premises, whether
in connection with any Alteration or otherwise, if such employment would
unreasonably interfere or cause any conflict with other contractors, mechanics
or laborers engaged in the construction, maintenance or operation of the
Building by Landlord, Tenant or others, or of any adjacent property owned by
Landlord. In the event of any such interference or conflict, Tenant, upon such
reasonable prior notice by Landlord as is practicable under the circumstances
(which notice may be oral, with subsequent confirmation in writing), shall
cause all contractors, mechanics or laborers causing such interference or
conflict to leave the Building immediately; provided, however,
that if any such interference or conflict shall be in the nature of a
jurisdictional dispute among separate labor unions or the local unions of any
trade, (i) Landlord shall not treat any contractors, mechanics, or
laborers directly or indirectly employed by Tenant in a discriminatory manner
compared to any contractors, mechanics, or laborers directly or indirectly
employed by any other tenant in the Building or by Landlord to perform work in
the Building, and (ii) Landlord and Tenant shall reasonably cooperate in
order to resolve any such interference or conflict.

 

Section 3.2             Tenant shall pay to Landlord
within twenty (20) days of demand and as additional rent in connection with
Landlord’s review of the plans and specifications for any Alteration, including,
without limitation, the Initial Alterations, the reasonable out-of-pocket
expenses incurred by Landlord in connection with such Alteration; provided,
however, that in no event shall such out-of-pocket expenses include any
supervisory fee to be paid to Landlord.

 

Section 3.3             Landlord, at Tenant’s expense,
and upon the reasonable request of Tenant, shall join in any applications for
any permits, approvals or certificates required to be obtained by Tenant in
connection with any permitted Alteration and shall otherwise cooperate with
Tenant in connection therewith, provided that Landlord shall not be obligated
to incur any

 

15

 

cost or expense not reimbursed by Tenant, including, without
limitation, attorneys’ fees and disbursements or suffer any liability in
connection therewith.

 

Section 3.4             With respect to all Alterations,
including, without limitation, all repair work and improvements made by Tenant
pursuant to the provisions of this Lease, Landlord shall have the right at all
times to monitor the performance of an Alteration for compliance with the
Alterations Rules and Regulations, Requirements, Rules and Regulations and the
terms and conditions of this Article 3. With respect to all Alterations,
Landlord shall have the right, on reasonable prior notice to Tenant (which
notice may be oral), to inspect the portion of the Building (or the Premises,
if applicable) where such work is being performed for purposes of confirming
Tenant’s compliance with the Alterations Rules and Regulations, Requirements,
Rules and Regulations and the terms and conditions of this Article 3
and Tenant shall reimburse Landlord for the reasonable out-of-pocket expense
incurred therefor. If Landlord reasonably determines that any of such
Alterations Rules and Regulations, Requirements, Rules and Regulations or terms
and conditions are not being complied with in all material respects, Landlord
shall notify Tenant of such non-compliance, and if such non-compliance is not
corrected (i) within ten (10) days of such notice, or
(ii) immediately in cases of emergency or in cases where the safety of
people or property is threatened, then Landlord may immediately require the
cessation of all work being performed in or around the Premises until such time
as Landlord is reasonably satisfied that the applicable Alterations Rules and
Regulations, Requirements, Rules and Regulations or terms and conditions will
be observed. Landlord’s inspection of any work in or around the Premises shall
not be deemed a certification by Landlord of compliance with any applicable
Alterations Rules and Regulations, Requirements, Rules and Regulations or terms
and conditions, or a waiver by Landlord of its right to require compliance in
all material respects with such Alterations Rules and Regulations,
Requirements, Rules and Regulations or terms and conditions, nor shall such
inspection relieve Tenant from any liabilities relating to such work.

 

Section 3.5             Anything contained in this Lease
to the contrary notwithstanding, Landlord’s consent shall not be required with
respect to (a) any Alteration consisting of painting or carpeting or
(b) any other Alteration, provided that such other Alterations
(i) are not directly visible from the outside of the Building, (ii) do
not affect any part of the Building other than the Premises, (iii) do not
adversely affect the Building Systems, (iv) do not affect any service
required to be furnished by Landlord to Tenant or any other tenant or occupant
of the Building or adversely affect the proper functioning of any Building
System, (v) do not adversely affect the certificate of occupancy for the
Building or the Premises, (vi) do not adversely affect the structural
components of the Building, and (vii) the estimated cost of the labor and
materials for which shall not exceed $150,000 for any one floor of the
Premises, which amount shall be increased on the third (3rd)
anniversary of the Commencement Date and annually thereafter by the annual
percentage increase, if any, in the Consumer Price Index from that in effect on
the date immediately preceding the anniversary of the Commencement Date, either
individually or in the aggregate with other Alterations constructed within any
twelve (12) month period; provided, however, that at least ten
(10) days prior to making any such Alteration, Tenant shall submit to Landlord
the plans and specifications for such Alteration, and any such Alteration shall
otherwise be performed in compliance with the provisions of this Article 3.

 

16

 

Section 3.6             (A)  On or prior to the Commencement Date,
Landlord will provide to Tenant a copy of the existing ACP-5 certificate for
the Premises. Upon receipt and approval of the plans and specifications for the
Initial Alterations, Landlord shall promptly deliver to Tenant a new ACP-5
certificate for the Premises.

 

(B)           Landlord
represents and warrants that, to the best of its knowledge, as of the date
hereof the Premises do not contain any asbestos or asbestos-containing materials.
If Tenant, at any time after the Commencement Date, shall uncover or discover
any asbestos, asbestos-containing materials or other hazardous materials within
the Premises, which asbestos, asbestos-containing materials or other hazardous
materials were not placed or caused to be placed in the Premises or such other
portion of the Building by Tenant or by Tenant’s employees, agents, contractors
or subcontractors, and which are required to be abated by removal, enclosure or
encapsulation in accordance with applicable Requirements, Landlord’s sole
obligation and liability shall be to promptly commence and diligently proceed
to remove, enclose or encapsulate same, at its sole cost and expense (except if
the asbestos, asbestos-containing materials, or other hazardous materials were
placed or caused to be placed in the Premises or any other portion of the
Building by Tenant or its employees, agents, contractors or subcontractors,
then such removal, enclosure or \encapsulation shall be performed by Landlord,
at Tenant’s sole cost and expense), in accordance with applicable Requirements.
Upon such uncovering or discovery of any such asbestos, asbestos-containing
materials or other hazardous materials, Tenant shall take all reasonable
actions to cooperate with Landlord and its contractor(s) in connection with the
removal, enclosure or encapsulation of such asbestos, asbestos-containing
materials or other hazardous materials, including, without limitation, Tenant
shall immediately vacate the Premises or affected portion thereof, if in the
judgment of Landlord and/or Landlord’s AIHA accredited contractor or
consultant, it is unsafe for persons to remain in such affected portion of the
Premises, and shall cause all of its employees, agents, contractors,
subcontractors, mechanics, materialmen, laborers and all other parties to do
the same. If Landlord or Landlord’s AIHA accredited contractor or consultant
shall determine that Tenant must vacate the Premises or affected portion
thereof as aforesaid, Tenant shall have no right to re-enter the Premises or
such affected portion until all of such asbestos, asbestos-containing materials
or other hazardous materials shall have been removed, enclosed or encapsulated,
as aforesaid, by Landlord in accordance with all applicable Requirements. If as
a result of the presence of such asbestos, asbestos-containing materials or
other hazardous materials or the removal, enclosure or encapsulation thereof as
aforesaid Tenant shall be unable to occupy the Premises or any portion thereof
to perform the Initial Alterations the Fixed Rent and Escalation Rent payable
with respect to the affected area of the Premises shall abate until Tenant
shall be able to occupy the affected area of the Premises (or any portion
thereof); provided, however, that if Tenant shall be unable to
occupy a portion of the Premises as aforesaid for any period prior to the Rent
Commencement Date, upon and after the occurrence of the Rent Commencement Date
the Fixed Rent and Escalation Rent payable with respect to such area shall be
abated for a period equal to the period for which Tenant was unable to occupy
such area prior to the Rent Commencement Date, which abatement shall be in
addition to any other abatement accruing after the occurrence of the Rent
Commencement Date pursuant to this Section 3.6(B). The foregoing shall
not constitute an actual or constructive eviction in whole or in part, or
relieve Tenant from any of its obligations under this Lease, or impose any
liability upon Landlord or its agents by reason of inconvenience or annoyance
to Tenant, or injury to or interruption of Tenant’s business, or otherwise.

 

17

 

Section 3.7             (A)  Landlord shall contribute an amount not to
exceed to Three Hundred Thousand and 00/100 Dollars ($300,000.00) (the “Tenant
Fund”), toward the costs of the Initial Alterations.

 

(B)           Landlord
shall disburse a portion of the Tenant Fund to Tenant or directly to such
contractor, subcontractor or materialmen as Tenant may direct from time to
time, within thirty (30) days after receipt of the items set forth in Section
3.7(E) hereof, provided that on the date of a request and on the
date of disbursement from the Tenant Fund no default of which Landlord shall
have provided notice to Tenant shall have occurred and be continuing. Upon
Tenant’s cure of a default referred to in the preceding sentence and the
satisfaction of the other terms and conditions of this Section 3.7(B),
Landlord shall disburse the previously requested portion of the Tenant Fund as
set forth herein. Disbursements from the Tenant Fund shall not be made more
frequently than monthly, and shall be in an amount equal to the aggregate
amounts theretofore paid or payable (as certified by an authorized officer of
Tenant and Tenant’s independent, licensed architect) to Tenant’s contractors,
subcontractors and materialmen (which amounts shall have not been the subject
of a previous disbursement from the Tenant Fund).

 

(C)           Landlord’s
obligation to make disbursements from the Tenant Fund shall be subject to
Landlord’s verification of the total cost of the Initial Alterations as
estimated by Tenant’s independent licensed architect and receipt of: (a) a
request for such disbursement from Tenant signed by an authorized officer of
Tenant, together with the certification required by Section 3.7(B)
hereof, (b) copies of all receipts, invoices and bills for the work
completed and materials furnished in connection with the applicable Initial
Alterations and incorporated in the Premises which are to be paid from the
requested disbursement or which have been paid by Tenant and for which Tenant
is seeking reimbursement, (c) work orders, change orders and other
materials relating to the work or materials which are the subject of the
requested disbursement or reimbursement, (d) a certificate of Tenant’s
independent licensed architect stating that, in his opinion, the portion of the
Initial Alterations theretofore completed and for which the disbursement is
requested was completed substantially in accordance with the final detailed
plans and specifications for such Initial Alterations, as approved by Landlord,
and (e) waivers of lien from all contractors, subcontractors and
materialmen who have performed work, or furnished materials in connection with
the Initial Alterations which were either paid or were the subject of any
previously requested disbursement.

 

(D)          In
no event shall the aggregate amount paid by Landlord to Tenant or its
contractor, subcontractor, or materialmen under this Section 3.7 exceed
the amount of the Tenant Fund. Upon the completion of the Initial Alterations
and satisfaction of the conditions set forth in Section 3.7(E)
hereof, any amount of the Tenant Fund which has not been previously disbursed
shall, at Landlord’s option, either (i) be paid to Tenant or (ii) be applied as
a credit against the next installment of Fixed Rent becoming due and payable.
Upon the disbursement of the entire Tenant Fund, Landlord shall have no further
obligation or liability whatsoever to Tenant for further disbursement of any
portion of the Tenant Fund to Tenant or Tenant’s contractor, subcontractors or
materialmen. Tenant shall complete, at its sole cost and expense, the Initial
Alterations, whether or not the Tenant Fund is sufficient to fund such
completion. Any costs to complete the Initial Alterations in excess of the
Tenant Fund shall be the sole responsibility and obligation of the Tenant.

 

18

 

(E)           Within
forty-five (45) days after completion of the Initial Alterations, Tenant shall
deliver to Landlord general releases and waivers of lien from all contractors,
subcontractors and materialmen involved in the performance of the Initial
Alterations and the materials furnished in connection therewith, and a
certificate from Tenant’s independent licensed architect certifying that
(i) in his opinion the Initial Alterations have been completed
substantially in accordance with the final detailed plans and specifications
for such Initial Alterations as approved by Landlord and (ii) all
contractors, subcontractors and materialmen have been paid for the Initial
Alterations and materials furnished through such date. Notwithstanding the
foregoing, Tenant shall not be required to deliver to Landlord any general
release or waiver of lien if Tenant shall be disputing in good faith the
payment which would otherwise entitle Tenant to such release or waiver,
provided that Tenant shall keep Landlord advised in a timely fashion of the
status of such dispute and the basis therefor and Tenant shall deliver to
Landlord the general release or waiver of lien when the dispute is settled. Nothing
contained in this Section, however, shall relieve Tenant from complying with
the provisions of Section 3.1(E) hereof.

 

ARTICLE 4

REPAIRS-FLOOR
LOAD

 

Section 4.1             Landlord shall make all
necessary repairs and replacements (both structural and non-structural) to the
Building Systems and the public portions of the Building and the structural
portions of the Premises, both exterior and interior, as well as latent defects
in the Building and the Premises and the structural components of the Premises,
and shall operate and maintain the Building in conformance with standards
applicable to comparable first-class office buildings in Manhattan. Tenant, at
Tenant’s sole cost and expense, shall take good care of the Premises and the
fixtures, equipment and appurtenances therein and make all nonstructural
repairs thereto as and when needed to preserve them in good working order and
condition, except for (i) reasonable wear and tear, obsolescence and
damage for which Tenant is not responsible pursuant to the provisions of Articles
10 and 11 hereof and (ii) damage caused by the negligence or willful
misconduct of Landlord or Landlord’s employees, agents, contractors or designees.
Notwithstanding the foregoing, (a) all damage or injury to the Premises or
to any other part of the Building, or to its fixtures, equipment and
appurtenances, whether requiring structural or nonstructural repairs, caused by
or resulting from the negligence or willful misconduct of, or Alterations made
by, Tenant, Tenant’s agents, employees, contractors, subcontractors or
materialmen, and not covered by Landlord’s insurance policies and any waiver of
subrogation in favor of Tenant thereon, shall be repaired at Tenant’s sole
reasonable cost and expense, either by Tenant to the reasonable satisfaction of
Landlord (if the required repairs are nonstructural in nature and do not affect
any Building System) or by Landlord (if the required repairs are structural in
nature or affect any Building System) and (b) all damage or injury to the
Premises (other than Alterations) or to any other part of the Building, or to
its fixtures, equipment and appurtenances, whether requiring structural or non-structural
repairs, caused by or resulting from the negligence or willful misconduct of
Landlord, Landlord’s agents, employees, contractors, subcontractors or
materialmen, and not covered by Tenant’s insurance policies and any waiver of
subrogation in favor of Landlord thereon, shall be repaired by Landlord at
Landlord’s sole reasonable cost and expense. Tenant also shall repair all
damage to the Building and the Premises to the extent caused by the
installation or the moving of Tenant’s Property. All the

 

19

 

aforesaid repairs shall be of first quality and class consistent with
first class office building work or construction and shall be made in
accordance with the provisions of Article 3 hereof. If
(i) Tenant fails after ten (10) days’ notice (or such shorter period (but
in no event less than five (5) days or such shorter period as may be required
due to an emergency) as Landlord may be permitted pursuant to any Superior
Lease or Mortgage) to proceed with due diligence to make repairs required to be
made by Tenant, and (ii) such repairs shall affect (A) a portion of
the Building outside the Premises or (B) the Premises and the failure to
perform such repair within the Premises may (x) cause a default under any
Mortgage or Superior Lease, (y) adversely affect Landlord’s ability to
maintain and operate the Building in accordance with the terms hereof, or
(z) cause imminent danger to persons or property, the same may be made by
Landlord at the reasonable expense of Tenant, and the reasonable out-of-pocket
expenses thereof incurred by Landlord, with interest thereon at the Applicable
Rate from the time the expense was incurred, shall be forthwith paid to
Landlord as additional rent within twenty (20) days after rendition of a bill
or statement therefor. Tenant shall give Landlord prompt notice after discovery
by Tenant of any defective condition in any Building System, located in,
servicing or passing through the Premises; provided, however,
that the failure to give such notice shall not constitute a default under this
Lease or vitiate any of Landlord’s repair obligations as set forth in this
Lease.

 

Section 4.2             Tenant shall not place a load
upon any floor of the Premises exceeding fifty (50) pounds per square foot “live
load” unless such increased load shall otherwise be permitted by all applicable
Requirements and the Certificate of Occupancy (as hereinafter defined, as the
same may be modified or amended). Tenant shall not move any safe, heavy
machines or machinery, heavy equipment, bulky matter or fixtures into or out of
the Building without Landlord’s prior consent, which consent shall not be
unreasonably withheld or delayed. If such safe, machinery, equipment, bulky
matter or fixtures requires special handling, Tenant shall employ only persons
holding a Master Rigger’s license to do said work. All work in connection
therewith shall comply with the Requirements, and shall be done during such
hours as Landlord may reasonably designate. Business machines and mechanical
equipment shall be placed and maintained by Tenant at Tenant’s expense in
settings sufficient in Landlord’s reasonable judgment to absorb and prevent
vibration, noise and annoyance, other than a de minimis amount thereof. Except
as expressly provided in this Lease, there shall be no allowance to Tenant for
a diminution of rental value and no liability on the part of Landlord by reason
of inconvenience, annoyance or injury to business arising from Landlord, Tenant
or others making, or failing to make, any repairs, alterations, additions or
improvements in or to any portion of the Building or the Premises, or in or to
fixtures, appurtenances or equipment thereof; provided, however,
that, except as otherwise provided in Section 14.3 hereof, the foregoing
shall not prevent Tenant from seeking specific performance of Landlord’s
obligations under this Article 4 in the event Landlord fails to perform
such obligations.

 

Section 4.3             Subject to the provisions of Section 4.4
hereof and except as otherwise provided in this Lease, Landlord or Landlord’s
employees, agents, contractors or designees shall have the right (x) to
enter the Premises at all reasonable times (except in the case of an emergency,
in which case at any time) upon reasonable prior notice (except in case of an
emergency, which notice may be oral) and subject to Tenant’s right to have a
representative present, without the same constituting (i) a breach by
Landlord of any provisions of this Lease, (ii) a breach of Tenant’s quiet
enjoyment, (iii) an actual or constructive eviction, or (iv) a
release of Tenant’s obligations to pay Fixed Rent, Escalation Rent, or any
items of Rental, and without

 

20

 

incurring any liability to Tenant therefor, to repair, change or
otherwise alter the arrangement or location of entrances or passageways, doors
and doorways, and corridors, elevators, stairs, toilets, or other space within
the Building other than the Premises and (y) to change the name, number or
designation by which the Building is commonly known, provided any such repair,
change or alteration (a) does not unreasonably deprive Tenant of
reasonable access to the Building or the Premises, or (b) does not reduce
the rentable area (except by a de minimis amount) of the Premises. Subject to the
release and waiver of subrogation provisions as more particularly described in Section 10.5
hereof, Landlord, at its expense, shall promptly repair any damage to the
Premises and Tenant’s Alterations caused by Landlord in its performance of any
such repair, change or alteration. All parts (except surfaces facing the
interior of the Premises) of all floors, ceilings, walls, windows and doors
bounding the Premises (including exterior Building walls, exterior core
corridor walls, all roofs adjacent to the Premises, all space in or adjacent to
the Premises used for shafts, stacks, Building stairways, chutes, pipes,
conduits, ducts, fan rooms, heating, air cooling, plumbing and other mechanical
facilities, service closets and other Building facilities) are not part of the
Premises, and Landlord shall have the use thereof, as well as reasonable access
thereto through the Premises in accordance with the terms and conditions of
this Section 4.3 for the purposes of operation, maintenance, alteration
and repair. Notwithstanding the foregoing, Tenant shall have access to the
electrical and telephone closets located on the same floor in the Building as
the Premises, subject to Landlord’s reasonable consent and the terms and
conditions of this Agreement.

 

Section 4.4             Landlord shall use its
reasonable efforts to minimize interference with Tenant’s access to the
Building and the Premises and enjoyment, use and occupancy of the Premises in
making any repairs, alterations, additions or improvements and to perform and
complete such repairs, alterations, additions or improvements with due
diligence; provided, however, that Landlord shall have no
obligation to employ contractors or labor at so-called overtime or other
premium pay rates or to incur any other overtime costs or expenses whatsoever,
except that Landlord, at its expense, shall employ contractors or labor at so-called
overtime or other premium pay rates (without reimbursement from Tenant except
to the extent such reimbursement shall otherwise be an Operating Expense hereunder)
if necessary to make any repair required to be made by it hereunder to remedy
any condition that either (i) results in a denial of reasonable access to,
or use of, any material portion of the Premises or (ii) adversely affects
Tenant’s use and occupancy of the Premises, or (iii) threatens the health
or safety of any occupant of the Premises or (iv) except in the case of fire or
other casualty, materially interferes with Tenant’s ability to conduct business
in the Premises. In all other cases, at Tenant’s request, Landlord shall employ
contractors or labor at so-called overtime or other premium pay rates (without
reimbursement from Tenant except to the extent such reimbursement shall
otherwise be an Operating Expense hereunder) and incur any other overtime costs
or expenses in making any repairs, alterations, additions or improvements,
provided Tenant shall pay to Landlord, as additional rent, within ten (10)
Business Days after demand, an amount equal to the difference between
(i) the overtime or other premium pay rates, including all fringe benefits
and other elements of such pay rates, and (ii) the regular pay rates for
such labor, including all fringe benefits and other elements of such pay rates.
If more than one tenant of the Building, including Tenant, shall request that
Landlord employ contractors or labor at so-called overtime or other premium pay
rates relating to the same work for which Tenant is chargeable, then Tenant
shall only be charged for a proportionate share of such overtime costs and
expenses, which apportionment shall be based on the amount of overtime work
requested by such parties.

 

21

 

ARTICLE 5

WINDOW
CLEANING

 

Tenant
shall not clean, nor require, permit, suffer or allow any window in the
Premises to be cleaned from the outside in violation of Section 202 of the
Labor Law, or any other applicable law, or of the rules of the Board of
Standards and Appeals, or of any other board or body having or asserting
jurisdiction.

 

ARTICLE 6

REQUIREMENTS
OF LAW

 

Section 6.1             (A)  Tenant, at its sole expense, shall comply
with all Requirements, including, without limitation, ADA, applicable to the
manner of use of the Premises by Tenant, the making of Alterations therein or
the result of the making thereof and those applicable by reason of the nature
or type of business conducted in, or manner of use by Tenant of, the Premises. Tenant
shall not do or permit to be done any act or thing upon the Premises which will
invalidate or be in conflict with a standard Insurance Services Office all-risk
insurance policy; and shall not do, or permit anything to be done in or upon
the Premises, or bring or keep anything therein, except as now or hereafter
permitted by the New York City Fire Department, New York Board of Fire
Underwriters, the Insurance Services Office or other authority having
jurisdiction and then only in such quantity and manner of storage as not to
increase the rate for fire insurance applicable to the Building, or use the
Premises in a manner (as opposed to mere use as general “offices”) which
specifically because of such use shall increase the rate of fire insurance on
the Building or on property located therein, over that in similar type
buildings or in effect on the Commencement Date. If by reason of Tenant’s
failure to comply with the provisions of this Article, the fire insurance rate
shall be higher than it otherwise would be, then Tenant shall desist from doing
or permitting to be done any such act or thing and shall reimburse Landlord, as
additional rent hereunder, for that part of all fire insurance premiums
thereafter paid by Landlord which shall have been charged because of such
failure by Tenant, and shall make such reimbursement within ten (10) days of
demand by Landlord. In any action or proceeding wherein Landlord and Tenant are
parties, a schedule or “make up” of rates for the Building or the Premises
issued by the Insurance Services Office, or other body fixing such fire
insurance rates, shall be conclusive evidence of the facts therein stated and
of the several items and charges in the fire insurance rates then applicable to
the Building.

 

(B)           Landlord,
at its sole cost and expense (but subject to recoupment as provided in Article 27
hereof), shall comply with all other Requirements applicable to the Premises
and the Building, other than those Requirements which Tenant or other tenants
or occupants of the Building shall be required to comply with, subject to
Landlord’s right to contest the applicability or legality thereof. Landlord
hereby represents that, to its knowledge, as of the date hereof the Building is
in compliance with all Requirements as to which non-compliance would result in
a material adverse effect upon Tenant’s right to occupy and use the Premises
for the uses expressly permitted pursuant to Article 2 hereof. If any
violation of any Requirement which Landlord is obligated to comply with
pursuant to the terms hereof shall materially delay or prevent the performance
of an Alteration, including obtaining any permits in connection therewith,
Tenant shall notify Landlord of same, which notice shall include a detailed
description

 

22

 

of the delay or prevention caused by such non-compliance and a detailed
description of the aspect of such Alteration subject to such delay or
prevention. No such delay or prevention shall be deemed to have occurred until
Landlord’s receipt of the aforesaid notice. Any such delay or prevention shall
end on the earlier of Landlord’s compliance with such Requirement or the date
that Tenant shall perform the aspect of such Alteration that was the subject of
such delay or prevention. If Tenant shall be delayed as aforesaid, Landlord
shall promptly commence and diligently prosecute to completion the cure and
removal of such violation.

 

Section 6.2             Tenant, at its sole cost and
expense and after notice to Landlord, may contest by appropriate proceedings
prosecuted diligently and in good faith, the legality or applicability of any
Requirement with which Tenant is required to comply under the terms of this
Lease provided that (a) Landlord (or any Indemnitee) shall not be subject
to imprisonment or to prosecution for a crime, nor shall the Real Property or
any part thereof be subject to being condemned or vacated, nor shall the
certificate of occupancy for the Premises or the Building be suspended or
threatened to be suspended by reason of non-compliance or by reason of such
contest; (b) before the commencement of such contest, if Landlord or any
Indemnitee may be subject to any civil fines or penalties or other criminal
penalties or if Landlord may be liable to any independent third party as a
result of such noncompliance, Tenant shall furnish to Landlord either
(i) a bond of a surety company reasonably satisfactory to Landlord, in
form and substance reasonably satisfactory to Landlord, and in an amount at
least equal to one hundred twenty percent (120%) of the sum of (A) the
cost of such compliance, (B) the criminal or civil penalties or fines that
may accrue by reason of such non-compliance (as reasonably estimated by
Landlord) and (C) the amount of such liability to independent third
parties (as reasonably estimated by Landlord), and shall indemnify Landlord
(and any Indemnitee) against the cost of such compliance and liability
resulting from or incurred in connection with such contest or non-compliance
(except that Tenant shall not be required to furnish such bond to Landlord if
it has otherwise furnished any similar bond required by law to the appropriate
Governmental Authority and has named Landlord as a beneficiary thereunder) or
(ii) other security reasonably satisfactory in all respects to Landlord;
(c) such non-compliance or contest shall not constitute or result in a
violation (either with the giving of notice or the passage of time or both) of
the terms of any Mortgage or Superior Lease the provisions of which Tenant
shall have been previously notified, or if such Superior Lease or Mortgage
shall condition such non-compliance or contest upon the taking of action or
furnishing of security by Landlord, such action shall be taken or such security
shall be furnished at the expense of Tenant; and (d) Tenant shall keep
Landlord regularly advised as to the status of such proceedings. Without
limiting the applicability of the foregoing, Landlord (or any Indemnitee) shall
be deemed subject to prosecution for a crime if Landlord (or any Indemnitee), a
Lessor, a Mortgagee or any of their officers, directors, partners,
shareholders, agents or employees is charged with a crime of any kind
whatsoever (by reason of Tenant’s non-compliance) unless such charges are
withdrawn twenty (20) days before Landlord (or any Indemnitee), such Lessor or
such Mortgagee or such officer, director, partner, shareholder, agent or
employee, as the case may be, is required to plead or answer thereto.

 

23

 

ARTICLE 7

SUBORDINATION

 

Section 7.1             Landlord hereby represents and
warrants that as of the date hereof, the only Mortgagee is The Chase Manhattan
Bank (the “Existing Mortgagee”) and there is no Lessor. The Mortgage
which affects the Real Property as of the date hereof shall be subject and
subordinate in all respects to this Lease and all rights of Tenant hereunder
and all renewals, amendments, extensions, supplements, modifications,
consolidations and replacements of such Mortgage (collectively, the “Existing
Mortgage”). Landlord further represents that the provision of such Mortgage
subordinating such Mortgage to this Lease is self-operative and no further
instrument of subordination shall be required to make the interest of Tenant
hereunder superior to the present Mortgage. This Lease shall be subject and
subordinate to each and every Superior Lease and to each and every Mortgage
hereafter affecting the Real Property or any Superior Lease, and to all
renewals, extensions, supplements, amendments, modifications, consolidations
and replacements thereof or thereto, substitutions therefor, and advances made
thereunder provided, however, that any future Mortgagee or Lessor
shall execute and deliver to Tenant an agreement in a form reasonably
satisfactory to Tenant to the effect that, if there shall be a foreclosure of
its Mortgage or termination of a Superior Lease, such Mortgagee or Lessor will
not make Tenant a party defendant to such foreclosure, evict Tenant, disturb
Tenant’s possession under this Lease, or terminate or disturb Tenant’s
leasehold estate or rights hereunder provided no Event of Default has occurred
and is continuing hereunder, and such agreement may contain in substance the
provisions set forth in Section 7.2 (1) through (7), except that
such provisions set forth in Section 7.2 (1) through (7) may be
reasonably modified from time to time to the extent such changes are consistent
with the form of nondisturbance agreements then customarily used in connection
with first class office buildings in midtown Manhattan for similar tenants (any
such agreement, or any agreement of similar import, from a Mortgagee or Lessor,
being hereinafter called a “Nondisturbance Agreement”). Any Superior
Lease to which this Lease is subordinate will not vitiate the rights of Tenant
hereunder or impose additional obligations other than to a de minimis extent
upon Tenant. This clause shall be self-operative and no further instrument of
subordination shall be required to make the interest of any Lessor or Mortgagee
superior to the interest of Tenant hereunder, however, Tenant shall execute and
deliver promptly any certificate or agreement in form and substance reasonably
acceptable to Tenant that Landlord may request in confirmation of such
subordination. If, in connection with the financing of the Real Property, the
Building or the interest of the lessee under any Superior Lease, any lending
institution shall request reasonable modifications of this Lease that do not
increase the monetary obligations of Tenant under this Lease, change the Term
or diminish the size of the Premises other than to a de minimis extent,
increase Tenant’s other obligations other than to a de minimis extent,
adversely affect the rights or obligations of Tenant under this Lease other
than to a de minimis extent, or decrease Landlord’s obligations under this
Lease other than to a de minimis extent, Tenant shall make such modifications.

 

Section 7.2             If at any time prior to the
expiration of the Term, any Superior Lease shall terminate or be terminated for
any reason or any Mortgagee (other than the Existing Mortgagee pursuant to the
Existing Mortgagee) comes into possession of the Real Property or the Building
or the estate created by any Superior Lease by receiver or otherwise, Tenant
agrees, at the election and upon demand of any owner of the Real Property or
the Building, to attorn, from time to time, to any such owner, Lessor or
Mortgagee or any person acquiring the interest

 

24

 

of Landlord as a result of any such termination, or as a result of a
foreclosure of the Mortgage (other than the Existing Mortgage) or the granting
of a deed in lieu of foreclosure (other than in connection with the Existing
Mortgage), upon the then executory terms and conditions of this Lease, subject
to the provisions of any Nondisturbance Agreement then in effect, the
provisions of Section 7.1 hereof, and this Section 7.2,
for the remainder of the Term, provided that such owner, Lessor or Mortgagee,
as the case may be, or receiver caused to be appointed by any of the foregoing,
shall then be entitled to possession of the Premises and provided further that
such owner, Lessor or Mortgagee, as the case may be, or anyone claiming by,
through or under such owner, Lessor or Mortgagee, as the case may be, including
a purchaser at a foreclosure sale, shall not be:

 

(1)           liable for any act or omission of any prior landlord (including,
without limitation, the then defaulting landlord) except to the extent that any
act or omission of such prior landlord shall continue after such Lessor or
Mortgagee shall become Landlord hereunder but only to the extent of any
liability arising from and after the date such Lessor or Mortgagee becomes
Landlord hereunder, or

 

(2)           subject to any defense or offsets which Tenant may have
against any prior landlord (including, without limitation, the then defaulting
landlord), or

 

(3)           bound by any payment of Rental which Tenant may have made to
any prior landlord (including, without limitation, the then defaulting
landlord) more than thirty (30) days in advance of the date upon which such
payment was due, or

 

(4)           bound by any obligation to make any payment to or on behalf
of Tenant, or

 

(5)           bound by any obligation to perform any work or to make
improvements to the Premises, except for (i) repairs and maintenance
pursuant to the provisions of Article 4, the need for which repairs
and maintenance first arises after the date upon which such owner, Lessor, or
Mortgagee shall be entitled to possession of the Premises, (ii) repairs to
the Premises or any part thereof as a result of damage by fire or other
casualty pursuant to Article 10 hereof, but only to the extent that
such repairs can be reasonably made from the net proceeds of any insurance
actually made available to such owner, Lessor or Mortgagee, and
(iii) repairs to the Premises as a result of a partial condemnation
pursuant to Article 11 hereof, but only to the extent that such
repairs can be reasonably made from the net proceeds of any award made
available to such owner, Lessor or Mortgagee, or

 

(6)           bound by any amendment or modification of this Lease made
without its consent, provided that Tenant shall have had notice that such
consent was required for such amendment or modification, or

 

(7)           bound to return Tenant’s security deposit, if any, until
such deposit has come into its actual possession and Tenant would be entitled
to such security deposit pursuant to the terms of this Lease.

 

Except to the extent otherwise provided in this Lease
or any Nondisturbance Agreement in effect, this Lease shall not terminate by
reason of the termination of any Superior Lease without

 

25

 

the prior written consent of the Mortgagee of the Mortgage which is a
first mortgage on Landlord’s interest in the Real Property. The provisions of
this Section 7.2 shall inure to the benefit of any such owner,
Lessor or Mortgagee, shall apply notwithstanding that, as a matter of law, this
Lease may terminate upon the termination of any such Superior Lease, and shall
be self-operative upon any such demand, and no further instrument shall be
required to give effect to said provisions. Tenant, however, within ten (10)
days after demand of any such owner, Lessor or Mortgagee from whom Tenant shall
have received a Nondisturbance Agreement (unless such Mortgagee shall be the
Mortgagee under the Mortgage affecting the Real Property as of the date hereof),
shall execute, from time to time, instruments in confirmation of the foregoing
provisions of this Section 7.2, reasonably satisfactory to any such
owner, Lessor or Mortgagee, and acknowledging such attornment and setting forth
the terms and conditions of its tenancy. Nothing contained in this Section 7.2
shall be construed to impair any right otherwise exercisable by any such owner,
Lessor or Mortgagee pursuant to the terms and conditions of this Lease.

 

Section 7.3             If requested by any Mortgagee
(other than the Mortgagee under the Mortgage affecting the Real Property as of
the date hereof), any Lessor or Landlord, Tenant agrees to promptly execute and
deliver at its own cost and expense a Nondisturbance Agreement to evidence such
subordination.

 

Section 7.4             (A)  From time to time, within fifteen (15) days
next following request by Landlord, any Mortgagee or any Lessor, Tenant shall
deliver to Landlord, such Mortgagee or such Lessor a written statement executed
by Tenant, in form reasonably satisfactory to Landlord, such Mortgagee or such
Lessor (1) stating that this Lease is then in full force and effect and
has not been modified (or if modified, setting forth all modifications),
(2) setting forth the date to which the Fixed Rent, additional rent and
other items of Rental have been paid, (3) stating whether or not, to the
best knowledge of Tenant, Landlord is in default under this Lease, and, if
Landlord is in default, setting forth the specific nature of all such defaults,
and (4) as to any other matters reasonably requested by Landlord, such
Mortgagee or such Lessor. Tenant acknowledges that any statement delivered
pursuant to this Section 7.4(a) may be relied upon by any purchaser
or owner of the Real Property or the Building, or Landlord’s interest in the
Real Property or the Building or any Superior Lease, or by any Mortgagee, or by
an assignee of any mortgagee, or by any Lessor.

 

(B)           From
time to time, within fifteen (15) days next following request by Tenant,
Landlord shall deliver to Tenant or any other party designated in writing by
Tenant a written statement executed by Landlord, in form reasonably
satisfactory to Tenant, (1) stating that this Lease is then in full force
and effect and has not been modified (or if modified, setting forth all modifications),
(2) setting forth the date to which the Fixed Rent, additional rent and
other items of Rental have been paid, (3) stating whether or not, to the
best knowledge of Landlord, Tenant is in default under this Lease, and, if
Tenant is in default, setting forth the specific nature of all such defaults,
and (4) as to any other matters reasonably requested by Tenant. Landlord
acknowledges that any such statement delivered pursuant to this Section 7.4(B)
may be relied on by permitted subtenants and assignees of Tenant and purchasers
of, or successors to, Tenant or any other party designated in writing by Tenant
pursuant to the provisions of Section 12.4 hereof.

 

26

 

Section 7.5             As long as any Superior Lease or
Mortgage shall exist, Tenant shall not seek to terminate this Lease by reason
of any act or omission of Landlord until Tenant shall have given written notice
of such act or omission to all Lessors and Mortgagees at such addresses as
shall have been furnished to Tenant by such Lessors and Mortgagees from whom
Tenant shall have received a Nondisturbance Agreement (which notice may be
delivered simultaneously with the delivery of notice of such act or omission to
Landlord) and, if any such Lessor or Mortgagee, as the case may be, shall have
notified Tenant in writing within thirty (30) Business Days following receipt
of such notice of its intention to remedy such act or omission, until a
reasonable period of time (but in no event more than ninety (90) days) shall
have elapsed following the giving of such notice, during which period such
Lessors and Mortgagees shall, if they have advised Tenant that they intended to
do so, have the right, but not the obligation, to remedy such act or omission; provided,
however, that in no event shall the provisions of this Section 7.5
be construed to limit the termination rights granted to Tenant pursuant to Article 10
and Article 11 of this Lease, except to the extent that the time
periods set forth therein with respect to Landlord’s obligations to perform
shall be extended by the time periods set forth in this Section 7.5.
As of the date of this Lease, the address for the Existing Mortgagee is One
Chase Manhattan Plaza, New York, New York 10005.

 

Section 7.6             Tenant hereby irrevocably waives
any and all right(s) it may have in connection with any zoning lot merger or
transfer of development rights with respect to the Real Property including,
without limitation, any rights it may have to be a party to, to contest, or to
execute, any Declaration of Restrictions (as such term is defined in
Section 12-10 of the Zoning Resolution of The City of New York effective
December 15, 1961, as amended) with respect to the Real Property, which
would cause the Premises to be merged with or unmerged from any other zoning
lot pursuant to such Zoning Resolution or to any document of a similar nature
and purpose, and Tenant agrees that this Lease shall be subject and subordinate
to any Declaration of Restrictions or any other document of similar nature and
purpose now or hereafter affecting the Real Property; provided, however,
that no such zoning lot merger or transfer of development rights shall
(a) increase Tenant’s monetary obligations under this Lease, including,
without limitation, Tenant’s obligations under Article 27 except to
the extent that Taxes may increase in connection with, or as a result of, such
zoning lot merger or transfer of development rights (unless such increase in
Taxes shall be in connection with, or the result of, any alteration or
improvement being performed to the Building which increases the rentable area
of the Building) or (b) increase Tenant’s other obligations or affect
Tenant’s other rights under this Lease, including, without limitation, Tenant’s
ability to use the Premises (and the Building) for the uses permitted by, and
subject to, the terms and conditions of this Lease. In confirmation of such
subordination and waiver, Tenant shall execute and deliver promptly any
certificate or instrument that Landlord reasonably may request.

 

ARTICLE 8

RULES
AND REGULATIONS

 

Tenant
and Tenant’s contractors, employees, agents, visitors and licensees shall
comply with the Rules and Regulations and the Alterations Rules and Regulations.
If Tenant disputes the reasonableness of any additional Rule or Regulation or
Alterations Rule or Regulation hereafter adopted by Landlord, the dispute shall
be determined by arbitration in the

 

27

 

City of New York in accordance with the rules and regulations then
obtaining of the American Arbitration Association or its successor. Any such
determination shall be final and conclusive upon the parties hereto. The right
to dispute the reasonableness of any additional Rule or Regulation or
Alterations Rule or Regulation upon Tenant’s part shall be deemed waived unless
the same shall be asserted by service of a notice upon Landlord within thirty
(30) days after receipt by Tenant of notice of the adoption of any such
additional Rule or Regulation or Alterations Rule or Regulation. The costs of
such arbitration shall be paid by the unsuccessful party. Nothing in this Lease
contained shall be construed to impose upon Landlord any duty or obligation to
enforce the Rules and Regulations or Alterations Rules and Regulations or
terms, covenants or conditions in any other lease against any other tenant, and
Landlord shall not be liable to Tenant for violation of the same by any other
tenant, its employees, agents, visitors or licensees, except that Landlord
shall not enforce any Rule or Regulation or Alterations Rule or Regulation
against Tenant which Landlord shall not then be enforcing against all other
office tenants in the Building. No additional rule or regulation adopted by
Landlord shall increase Tenant’s monetary obligations hereunder other than by a
de minimis amount or materially reduce Tenant’s rights, or reduce Landlord’s
obligations under this Lease or interfere with Tenant’s permitted use hereunder
(other than to a de minimis extent). In the event of a conflict or
inconsistency between this Lease and the Rules and Regulations or Alterations
Rules and Regulations, the terms of this Lease shall be deemed to control.

 

ARTICLE 9

INSURANCE,
PROPERTY LOSS OR DAMAGE; REIMBURSEMENT

 

Section 9.1             (A)  Any Building employee to whom any property
shall be affirmatively and voluntarily entrusted by or on behalf of Tenant
shall be deemed to be acting as Tenant’s agent with respect to such property
and neither Landlord nor its agents shall be liable for any damage to property
of Tenant or of others so entrusted to employees of the Building, nor for the
loss of or damage to any property of Tenant by theft or otherwise, except as
may arise from the negligence or willful misconduct of Landlord, its agents or
employees.

 

(B)           Except
as expressly provided in this Lease, neither Landlord nor its agents shall be
liable (i) for any injury or damage to persons or property, or
interruption of Tenant’s business, resulting from fire or other casualty,
(ii) for any such injury or damage caused by other tenants or persons in
the Building or caused by construction of any private, public or quasi-public
work other than by Landlord or its agents or employees, nor (iii) for any
latent defect in the Premises or in the Building (except to the extent Landlord
shall be required to repair same pursuant to Article 4 hereof). Anything
in this Article 9 to the contrary notwithstanding, except as set
forth in Articles 4, 10, 13, 28 and 35 of
this Lease and otherwise as expressly provided herein, Landlord shall not be
relieved from responsibility directly to Tenant for any loss or damage caused
to Tenant wholly or in part by the willful or negligent acts or omissions of
Landlord or Landlord’s employees, agents, contractors or designees. Nothing in
the foregoing shall affect any right of Landlord or Tenant under Article 35
hereof in order to recoup for payments made to compensate for losses of third
parties.

 

(C)           Subject
to the provisions of Section 4.4 hereof, if at any time any windows
of the Premises are temporarily closed, darkened or bricked-up by reason of
repairs,

 

28

 

maintenance, alterations or improvements to the Building or due to any
Requirement, or any of such windows are permanently closed, darkened or bricked
up due to any Requirement, Landlord shall not be liable for any damage Tenant
may sustain thereby and Tenant shall not be entitled to any compensation
therefor nor abatement of Fixed Rent or any other item of Rental nor shall the
same release Tenant from its obligations hereunder or constitute an eviction.

 

(D)          Tenant
shall, as soon as practicable, notify Landlord of any fire or accident in the
Premises.

 

Section 9.2             Tenant shall obtain and keep in
full force and effect (i) an “all risk” insurance policy for Tenant’s
Alterations and Tenant’s Property at the Premises, and (ii) a policy of
comprehensive general public liability and property damage insurance on an
occurrence basis with a broad form contractual liability endorsement. Such
policies shall provide that Tenant is named as the insured. Landlord, Landlord’s
managing agent and any Lessors and any Mortgagees (whose names shall have been
furnished to Tenant) shall be added as additional insureds, as their respective
interests may appear. To the extent obtainable by Tenant at commercially
reasonable rates, such policy with respect to clause (ii) above
shall include a provision under which the insurer agrees to indemnify and hold
Landlord, Landlord’s managing agent, and such Lessors and Mortgagees harmless
from and against all cost, expense and/or liability arising out of or based
upon any and all claims, accidents, injuries and damages mentioned in Article 35.
In addition, the policy required to be carried pursuant to clause (ii)
above shall contain a provision that the policy shall be non-cancelable and non-modifiable
with respect to Landlord, such managing agent, and such Lessors and Mortgagees
(whose names and addresses shall have been furnished to Tenant) unless thirty
(30) days’ written notice shall have been given to Landlord by certified mail,
return receipt requested, which notice shall contain the policy number and the
names of the insured and additional insureds. In addition, upon receipt by
Tenant of any notice of cancellation or any other notice from the insurance
carrier which may adversely affect the coverage of the insureds under such
policy of insurance, Tenant shall immediately deliver to Landlord and any other
additional insureds thereunder a copy of such notice. The minimum limits of liability
under the policy of insurance required to be carried pursuant to clause (ii)
above shall be a combined single limit with respect to each occurrence in an
amount of not less than $5,000,000 for injury (or death) to persons and damage
to property, which amount shall be increased from time to time (but not more
frequently than once in any three (3) year period, unless otherwise required by
any Mortgage or Superior Lease) to that amount of insurance which is then being
customarily required of similarly situated office tenants by prudent landlords
of first-class non-institutional office buildings in New York City. All
insurance required to be carried by Tenant pursuant to the terms of this Lease
shall be effected under valid and enforceable policies issued by reputable and
independent insurers permitted to do business in the State of New York, and
rated in Best’s Insurance Guide, or any successor thereto (or if there be none,
an organization having a national reputation) as having a general policyholder
rating of “A” and a financial rating of at least “13.” Any insurance maintained
by Tenant pursuant to this Section 9.2 may be evidenced by blanket
or umbrella insurance policies covering the Premises and other properties or
assets of Tenant.

 

Section 9.3             Landlord shall obtain and keep
in full force and effect (i) insurance against loss or damage by fire and
other casualty to the Building as may be insurable under then available
standard forms of “all-risk” insurance policies, in an amount equal to one
hundred

 

29

 

percent (100%) of the replacement value thereof or in such lesser
amount as will avoid co-insurance (including an “agreed amount” endorsement)
and (ii) commercial general liability insurance in the amount which in
Landlord’s reasonable judgment is then being customarily obtained by prudent
landlords of first-class non-institutional office buildings in New York City. Notwithstanding
the foregoing, Landlord shall not be liable to Tenant for any inability to
insure or failure to replace or restore any Alterations unless Tenant shall
have notified Landlord of the completion of such Alterations and of the cost
thereof and delivered to Landlord final “as built” plans and specifications of
such Alterations, and shall maintain adequate records with respect to such
Alterations to facilitate the adjustment of any insurance claims with respect
thereto. Tenant shall cooperate with Landlord and Landlord’s insurance
companies in the adjustment of any claims for any damage to the Building or
such Alterations.

 

Section 9.4             On or prior to the Commencement
Date, Tenant shall deliver to Landlord appropriate certificates of insurance
including evidence of waivers of subrogation required pursuant to Section 10.5,
required to be carried by Tenant pursuant to this Article 9. Evidence
of each renewal or replacement of a policy shall be delivered by Tenant to
Landlord at least thirty (30) days prior to the expiration of such policy, and
a copy of such replacement policy or certificates thereof shall be delivered by
Tenant to Landlord upon request.

 

ARTICLE 10

DESTRUCTION-FIRE
OR OTHER CAUSE

 

Section 10.1           (A)  If the Premises
(including the Alterations) shall be damaged by fire or other casualty, upon
notice thereof to Landlord the damage to the Premises, but excluding damage to
the Alterations and Tenant’s Property, shall be diligently repaired by and at
the expense of Landlord to substantially the condition prior to the damage,
with such modifications as shall be required in order to comply with
Requirements, and from the date of such damage until the later of (i) such
repairs by Landlord as are required pursuant to this Section 10.1(A)
shall be substantially completed (of which substantial completion Landlord
shall promptly notify Tenant) or (ii) the earlier of (x) substantial
completion by Tenant of such repairs to Alterations or Tenant’s Property to
substantially the condition prior to such damage, provided that Tenant shall
promptly commence and diligently pursue such repairs or (y) ninety (90)
days after Landlord shall have delivered notice of substantial completion of
Landlord’s repairs as set forth in item (i) above, the Fixed Rent,
Escalation Rent and Space Factor shall be reduced in the proportion which the
area of the part of the Premises which is not usable by Tenant (and not
actually used by Tenant for purposes of conducting Tenant’s normal business
operations), bears to the total area of the Premises. Tenant shall reasonably
cooperate with Landlord without any material expense to Tenant in connection
with the making of such repairs, including, without limitation, the making or
settlement of any insurance claims. Landlord shall have no obligation to repair
any damage to, or to replace, any Alterations or Tenant’s Property. Landlord
shall comply with the provisions of Section 4.4 hereof in making any
repairs pursuant to this Section.

 

(B)           Prior
to the substantial completion of any such repair, Landlord shall provide Tenant
and Tenant’s contractor, subcontractors and materialmen access to the Premises
to perform Alterations, on the following terms and conditions (but not to
occupy the same for the conduct of business):

 

30

 

(1)           Tenant
shall not commence work in any portion of the Premises until the date specified
in a notice (which notice shall be delivered not later than ten (10) days prior
to the date specified therein) from Landlord to Tenant stating that the repairs
required to be made by Landlord have been or will be completed to the extent
reasonably necessary, in Landlord’s reasonable discretion, to permit the
commencement of the Alterations then prudent to be performed in accordance with
good construction practice in the portion in question without interference
with, and consistent with the performance of, the repairs remaining to be
performed;

 

(2)           Such
access by Tenant shall be deemed to be subject to all of the applicable
provisions of this Lease, except that there shall be no obligation on the part
of Tenant solely because of such access to pay any Fixed Rent, Escalation Rent,
or the Electricity Additional Rent, with respect to the affected portion of the
Premises for any period prior to substantial completion of the repairs required
to be made by Landlord hereunder; and

 

(3)           It
is expressly understood that if after 3 days notice to Tenant (or such longer
period as shall be reasonably required under the circumstances) to discontinue
the performance of Tenant’s Alterations or comply with Landlord’s reasonable
requirements in connection with such performance, Landlord shall be prevented
from substantially completing the repairs due to any acts of Tenant, its
agents, servants, employees or contractors, including without limitation by
reason of the performance of any Alteration, by reason of Tenant’s failure or
refusal to comply or to cause its architects, engineers, designers and
contractors to comply with any of Tenant’s obligations described or referred to
in this Lease, or if such repairs are not completed, because under good
construction scheduling practice such repairs should be performed after
completion of any Alteration, then such work shall be deemed substantially
complete on the date when the work would have been substantially complete but
for such delay and the expiration of the abatement of the Tenant’s obligations
hereunder shall not be postponed by reason of such delay. Any additional
reasonable and necessary costs to Landlord to complete any work occasioned by
such delay shall be paid by Tenant to Landlord within ten (10) days after
demand, as additional rent.

 

Section 10.2           Anything contained in Section 10.1 to the
contrary notwithstanding, if the Building shall be so damaged by fire or other
casualty that, in Landlord’s reasonable opinion, substantial alteration,
demolition, or reconstruction of the Building shall be required (whether or not
the Premises shall have been damaged or rendered untenantable), then Landlord,
at Landlord’s option, may, not later than sixty (60) days following the damage,
give Tenant a notice in writing terminating this Lease, provided that
(a) Landlord may not terminate this Lease unless it shall elect to
terminate leases (including this Lease), affecting at least seventy-five percent
(75%) of the rentable area of the Building and (b) in the event such
casualty does not affect the Premises, Landlord shall only have the right to
terminate this Lease if Landlord shall also elect to terminate all leases
(including this Lease) affecting the office portion of the Building. If
Landlord elects to terminate this Lease, the Term shall expire upon a date set
by Landlord, but not sooner than the thirtieth (30th) day after such
notice is given, unless sooner if required by any Requirement or any insurance
requirement, and Tenant shall vacate the Premises and surrender the same to
Landlord in accordance with the provisions of Article 20 hereof; provided,
however, that if Landlord shall so terminate this Lease pursuant to this
Section 10.2, Tenant shall have no obligation to repair or restore
the Premises pursuant to

 

31

 

Article 3 or Article 20
of this Lease. Upon the termination of this Lease under the conditions provided
for in this Section 10.2, Tenant’s liability for Fixed Rent and
Escalation Rent and additional rent shall cease and any prepaid portion of
Fixed Rent and Escalation Rent for any period after such date shall be promptly
refunded by Landlord to Tenant.

 

Section 10.3           (A)  Within sixty (60)
days after notice to Landlord of any damage described in Section 10.1
hereof, Landlord shall deliver to Tenant a statement prepared by a reputable
independent contractor setting forth such contractor’s good faith estimate as
to the time required to repair such damage, exclusive of time required to
repair any Alterations (the “Estimated Completion Time”). If
(i) the Estimated Completion Time shall be more than two hundred seventy
(270) days, or (ii) the repair of such damage shall not be substantially complete
within ninety (90) days after the expiration of the Estimated Completion Time
(plus up to sixty (60) days beyond such ninety (90) day period in the event of
the occurrence of any Unavoidable Delays affecting the performance of such
repairs), Tenant may elect to terminate this Lease by notice to Landlord not
later than thirty (30) days following the occurrence of the date set forth in
clause (i) or (ii) above which gave rise to such termination right. If
Tenant makes such election, the Term shall expire upon the thirtieth (30th)
day after notice of such election is given by Tenant (or such shorter period as
required by any applicable Requirement or Landlord’s insurance carrier), and
Tenant shall vacate the Premises and surrender the same to Landlord in
accordance with the provisions of Article 20 hereof.

 

(B)           Notwithstanding
the foregoing, if the Premises shall be substantially damaged during the last
year of the initial Term or any renewal term, Landlord or Tenant may elect by
notice, given within thirty (30) days after the occurrence of such damage, to
terminate this Lease and if either party makes such election, the Term shall
expire upon the thirtieth (30th) day after notice of such election
is given by such party and Tenant shall vacate the Premises and surrender the
same to Landlord in accordance with the provisions of Article 20
hereof. Except as set forth in this Section 10.3, Tenant shall have
no other options to cancel this Lease under this Article 10. For
purposes of this Section 10.3(B) only, “substantially damaged”
shall mean damage to twenty-five percent (25%) or more of the rentable area of
the Premises.

 

Section 10.4           This Article 10 constitutes an express agreement
governing any case of damage or destruction of the Premises or the Building by
fire or other casualty, and Section 227 of the Real Property Law of the
State of New York, which provides for such contingency in the absence of an
express agreement, and any other law of like nature and purpose now or
hereafter in force shall have no application in any such case.

 

Section 10.5           The parties hereto shall procure an appropriate clause in,
or endorsement on, any fire or extended coverage insurance covering the
Premises, the Building and personal property, fixtures and equipment located
thereon or therein, pursuant to which the insurance companies waive subrogation
or consent to a waiver of right of recovery and having obtained such clauses or
endorsements of waiver of subrogation or consent to a waiver of right of
recovery, will not make any claim against or seek to recover from the other for
any loss or damage to its property or the property of others resulting from
fire or other hazards covered by such fire and extended coverage insurance, provided,
however, that the release, discharge, exoneration and covenant not to
sue herein contained shall be limited by and coextensive with the terms and
provisions of the waiver of subrogation clause or endorsements or clauses or

 

32

 

endorsements consenting to a waiver of right of recovery. If the
payment of an additional premium is required for the inclusion of such waiver
of subrogation provision, each party shall advise the other of the amount of
any such additional premiums and the other party at its own election may, but
shall not be obligated to, pay the same. If such other party shall not elect to
pay such additional premium, the first party shall not be required to obtain
such waiver of subrogation provision. If either party shall be unable to obtain
the inclusion of such clause even with the payment of an additional premium,
then such party shall attempt to name the other party as an additional insured
(but not a loss payee) under the policy. If the payment of an additional
premium is required for naming the other party as an additional insured (but
not a loss payee), each party shall advise the other of the amount of any such
additional premium and the other party at its own election may, but shall not
be obligated to, pay the same. If such other party shall not elect to pay such
additional premium or if it shall not be possible to have the other party named
as an additional insured (but not loss payee), even with the payment of an
additional premium, then (in either event) such party shall so notify the first
party and the first party’s agreement to name the other party as an additional
insured shall be satisfied. Tenant acknowledges that Landlord shall not carry
insurance on and shall not be responsible for damage to, Tenant’s Property or
Alterations, and that Landlord shall not carry insurance against, or be
responsible for any loss suffered by Tenant due to, interruption of Tenant’s
business.

 

ARTICLE 11

EMINENT
DOMAIN

 

Section 11.1           If the whole of the Real Property, the Building or the
Premises shall be acquired or condemned for any public or quasi-public use or
purpose, this Lease and the Term shall end as of the date of the vesting of
title with the same effect as if said date were the Expiration Date. If only a
part of the Real Property and not the entire Premises shall be so acquired or
condemned then, (1) except as hereinafter provided in this Section 11.1,
this Lease and the Term shall continue in force and effect but, if a part of
the Premises is included in the part of the Real Property so acquired or
condemned, from and after the date of the vesting of title, the Fixed Rent and
the Space Factor shall be reduced in the proportion which the area of the part
of the Premises so acquired or condemned bears to the total area of the
Premises immediately prior to such acquisition or condemnation and Tenant’s
Share shall be redetermined based upon the proportion in which the ratio
between the rentable area of the Premises remaining after such acquisition or
condemnation bears to the rentable area of the Building remaining after such
acquisition or condemnation; (2) if the Premises shall be affected
thereby, Landlord, at Landlord’s option, may give to Tenant, within sixty (60)
days next following the date upon which Landlord shall have received notice of
vesting of title, a ninety (90) days’ notice of termination of this Lease if
Landlord shall elect to terminate leases (including this Lease), affecting at
least fifty percent (50%) of the rentable area of the Building; (3) if at
least fifty percent (50%) of the Building, but not the Premises, shall have
been affected thereby, Landlord, at Landlord’s option, may give to Tenant,
within sixty (60) days next following the date upon which Landlord shall have
received notice of vesting of title, a ninety (90) days’ notice of termination
of this Lease if Landlord shall elect to terminate leases (including this
Lease), affecting at least seventy-five percent (75%) of the rentable area of
the Building; and (4) if the part of the Real Property so acquired or
condemned shall contain more than fifteen percent (15%) of the total area of
the Premises immediately prior to such acquisition or condemnation, or

 

33

 

if, by reason of such acquisition or condemnation, Tenant no longer has
reasonable means of access to the Premises or if, in Tenant’s reasonable
opinion, the portion of the Premises remaining shall be inadequate for Tenant
to conduct its business at the Premises or if a temporary taking of the
Premises is in excess of one hundred eighty (180) days, Tenant, at Tenant’s
option, may give to Landlord, within sixty (60) days next following the date
upon which Tenant shall have received notice of vesting of title, a thirty (30)
days’ notice of termination of this Lease. If any such thirty (30) days’ notice
of termination is given, by Landlord or Tenant, this Lease and the Term shall
come to an end and expire upon the expiration of said thirty (30) days with the
same effect as if the date of expiration of said thirty (30) days were the
Expiration Date. If a part of the Premises shall be so acquired or condemned
and this Lease and the Term shall not be terminated pursuant to the foregoing
provisions of this Section 11.1, Landlord, at Landlord’s expense,
shall restore that part of the Premises not so acquired or condemned and any
Alterations affected thereby to a self-contained rental unit to a condition
similar to that on the Commencement Date exclusive of Tenant’s Alterations. In
the event of any termination of this Lease and the Term pursuant to the
provisions of this Section 11.1, the Fixed Rent, Escalation Rent
and Additional Rent shall be apportioned as of the earlier of (i) the date
of sooner termination or (ii) vesting of title, and any prepaid portion of
Fixed Rent, Escalation Rent for any period after such date shall be refunded by
Landlord to Tenant.

 

Section 11.2           In the event of any such acquisition or condemnation of all
or any part of the Real Property, Landlord shall be entitled to receive the
entire award for any such acquisition or condemnation, Tenant shall have no
claim against Landlord or the condemning authority for the value of any
unexpired portion of the Term and Tenant hereby expressly assigns to Landlord
all of its right in and to any such award. Nothing contained in this Section 11.2
shall be deemed to prevent Tenant from making a separate claim in any
condemnation proceedings for the then value of any Tenant’s Property included
in such taking, and for any moving expenses, provided that same does not reduce
any award or payment to Landlord.

 

Section 11.3           If the whole or any part of the Premises shall be acquired
or condemned temporarily (not to exceed one hundred eighty (180) days) during
the Term for any public or quasi-public use or purpose, Tenant shall give
prompt notice thereof to Landlord and the Term shall not be reduced or affected
in any way and Tenant shall continue to pay in full all items of Rental payable
by Tenant hereunder without reduction or abatement, and Tenant shall be
entitled to receive for itself any award or payments for such use, provided,
however, that:

 

(i)            if the
acquisition or condemnation is for a period not extending beyond the Term and
if such award or payment is made less frequently than in monthly installments,
the same shall be paid to and held by Landlord as a fund which Landlord shall
apply from time to time to the Rental payable by Tenant hereunder, except that,
if by reason of such acquisition or condemnation changes or alterations are
required to be made to the Premises which would necessitate an expenditure to
restore the Premises, then a portion of such award or payment reasonably
considered by Landlord as appropriate to cover the expenses of the restoration
shall be retained by Landlord, without application as aforesaid, and applied
toward the restoration of the Premises as provided in Section 11.1
hereof; or

 

(ii)           if the
acquisition or condemnation is for a period extending beyond the Term, such
award or payment shall be apportioned between Landlord and

 

34

 

Tenant as of the Expiration Date; Tenant’s share thereof, if paid less
frequently than in monthly installments, shall be paid to Landlord and applied
in accordance with the provisions of clause (i) above, provided, however,
that the amount of any award or payment allowed or retained for restoration of
the Premises shall remain the property of Landlord if this Lease shall expire
prior to the restoration of the Premises.

 

ARTICLE 12

ASSIGNMENT
SUBLETTING MORTGAGE, ETC.

 

Section 12.1           (A)  Except as
expressly permitted herein, Tenant, without the prior consent of Landlord in
each instance, shall not (a) assign its rights or delegate its duties
under this Lease (whether by operation of law, transfers of interests in Tenant
or otherwise), mortgage or encumber its interest in this Lease, in whole or in
part, (b) sublet, or permit the subletting of the Premises or any part
thereof, or (c) permit the Premises or any part thereof to be occupied, or
used for desk space, mailing privileges or otherwise, by any person other than
Tenant.

 

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

 

Section 12.2           If Tenant’s interest in this Lease is assigned in violation
of the provisions of this Article 12, such assignment shall be void
and of no force and effect against Landlord; provided, however,
that Landlord may collect an amount equal to the then Fixed Rent plus any other
item of Rental from the assignee as a fee for its use and occupancy which
amount, to the extent actually received by Landlord, shall be credited against
the Rental payable for such period. If the Premises or any part thereof are
sublet to, or occupied by, or used by, any person other than Tenant, whether or
not in violation of this Article 12, Landlord, after an Event of
Default under this Lease, may collect any item of Rental or other sums paid by
the subtenant, user or occupant as a fee for its use and occupancy, and shall
apply the net amount collected to the Fixed Rent and other items of Rental
reserved in this Lease. No such assignment, subletting, occupancy or use,
whether with or without Landlord’s prior consent, nor any such collection or
application of Rental or fee for use and occupancy, shall be deemed a waiver by
Landlord of any term, covenant or condition of this Lease or the acceptance by
Landlord of such assignee, subtenant, occupant or user as tenant hereunder. The
consent by Landlord to any assignment, subletting, occupancy or use shall not
relieve Tenant from its obligation to obtain the express prior consent of
Landlord to any further assignment, subletting, occupancy or use to the extent
such consent is specifically required by the terms of this Lease. Tenant shall
pay to Landlord the reasonable out-of-pocket attorneys’ fees and disbursements
incurred by or on behalf of Landlord in connection with any proposed assignment
of Tenant’s interest in this Lease or any proposed subletting of the Premises
or any part thereof to the extent such consent is specifically required

 

35

 

by the terms of this Lease. Neither any assignment of Tenant’s interest
in this Lease nor any subletting, occupancy or use of the Premises or any part
thereof by any person other than Tenant, nor any collection of Rental by
Landlord from any person other than Tenant as provided in this Section 12.2,
nor any application of any such Rental as provided in this Section 12.2
shall, in any circumstances, relieve Tenant of its obligations under this Lease
on Tenant’s part to be observed and performed. Any person or entity to which
this Lease is assigned pursuant to the provisions of the Bankruptcy Code shall
be deemed without further act or deed to have assumed all of the obligations
arising under this Lease on and after the date of such assignment. Any such
assignee shall execute and deliver to Landlord within thirty (30) days following
demand an instrument confirming such assumption. No assignment of this Lease
shall relieve Tenant of its obligations hereunder and, subsequent to any
assignment, Tenant’s liability hereunder shall continue notwithstanding any
subsequent modification or amendment hereof or the release of any subsequent
tenant hereunder from any liability, to all of which Tenant hereby consents in
advance: provided, however, if any subsequent modification or
amendment of this Lease made without the consent of Tenant shall increase the
obligations or liability of Tenant under this Lease, any prior tenant,
including Tenant, shall not be liable to the extent of any such increase,
except if any such modification or amendment is made with a Related Entity of
Tenant, Tenant shall be bound by such modification or amendment.

 

Section 12.3           (A)  If Tenant assumes
this Lease and proposes to assign the same pursuant to the provisions of the
Bankruptcy Code to any person or entity who shall have made a bona fide offer to accept an assignment of
this Lease on terms acceptable to the Tenant, then notice of such proposed
assignment shall be given to Landlord by Tenant no later than twenty (20) days
after receipt by Tenant, but in any event no later than ten (10) days prior to
the date that Tenant shall make application to a court of competent
jurisdiction for authority and approval to enter into such assignment and
assumption. Such notice shall set forth (a) the name and address of such
person, (b) all of the terms and conditions of such offer, and
(c) adequate assurance of future performance by such person under the
Lease, including, without limitation, the assurance referred to in
Section 365(b)(3) of the Bankruptcy Code. If permitted by applicable law,
Landlord shall have the prior right and option, to be exercised by notice to
Tenant given at any time prior to the effective date of such proposed
assignment, to accept an assignment of this Lease upon the same terms and
conditions and for the same consideration, if any, as the bona  fide
offer made by such person, less any brokerage commissions which would otherwise
be payable by Tenant out of the consideration to be paid by such person in
connection with the assignment of this Lease.

 

(B)           The
term “adequate assurance of future performance” as used in Section 12.3
of this Lease shall mean that any proposed assignee shall, among other things,
(a) deposit with Landlord on the assumption of this Lease the sum of six
(6) months of the then Fixed Rent as security for the faithful performance and observance
by such assignee of the terms and obligations of this Lease, (b) furnish
Landlord with financial statements of such assignee for the prior three (3)
fiscal years, as finally determined after an audit and certified as correct by
a certified public accountant, which financial statements shall show a net
worth of at least six (6) times the then Fixed Rent for each of such three (3)
years, and (c) provide such other information or take such action as
Landlord, in its reasonable judgment shall determine is necessary to provide
adequate assurance of the performance by such assignee of its obligations under
the Lease.

 

36

 

Section 12.4           If, at any time after Tenant may have assigned Tenant’s
interest in this Lease, this Lease shall be disaffirmed or rejected in any
proceeding of the types described in Paragraph (E) of Section 16.1
hereof, or in any similar proceeding, or in the event of termination of this
Lease by reason of any such proceeding or by reason of lapse of time following
notice of termination given pursuant to said Article 16 based upon
any of the Events of Default set forth in such paragraph, Tenant, upon request
of Landlord given within thirty (30) days next following any such
disaffirmance, rejection or termination (and actual notice thereof to Landlord
in the event of a disaffirmance or rejection or in the event of termination
other than by act of Landlord), shall (1) pay to Landlord all Fixed Rent,
Escalation Rent and other items of Rental due and owing by the assignee to
Landlord under this Lease to and including the date of such disaffirmance,
rejection or termination, and (2) as “tenant,” enter into a new lease with
Landlord of the Premises for a term commencing on the effective date of such
disaffirmance, rejection or termination and ending on the Expiration Date,
unless sooner terminated as in such lease provided, at the same Fixed Rent and
upon the then executory terms, covenants and conditions as are contained in
this Lease, except that (a) Tenant’s rights under the new lease shall be
subject to the possessory rights of the assignee under this Lease and the
possessory rights of any person claiming through or under such assignee or by
virtue of any statute or of any order of any court, and (b) such new lease
shall require all defaults existing under this Lease to be cured by Tenant with
due diligence, and (c) such new lease shall require Tenant to pay all
Escalation Rent reserved in this Lease which, had this Lease not been so disaffirmed,
rejected or terminated, would have accrued under the provisions of Article 27
hereof after the date of such disaffirmance, rejection or termination with
respect to any period prior thereto. If Tenant shall default in its obligation
to enter into said new lease for a period of ten (10) days next following
Landlord’s request therefor, then, in addition to all other rights and remedies
by reason of such default, either at law or in equity, Landlord shall have the
same rights and remedies against Tenant as if Tenant had entered into such new
lease and such new lease had thereafter been terminated as of the commencement
date thereof by reason of Tenant’s default thereunder.

 

Section 12.5           Tenant shall have the privilege subject to the terms and
conditions hereinafter set forth, without the consent of Landlord, to assign
its interest in this Lease (i) to any corporation which is a successor to
Tenant either by merger or consolidation, (ii) to a purchaser of all or
substantially all of Tenant’s assets or to a purchaser of all or substantially
all of Tenant’s stock (provided such purchaser shall have also assumed
substantially all of Tenant’s liabilities) or (iii) to a corporation or
other entity which shall (1) control, (2) be under the control of, or
(3) be under common control with, the originally named Tenant or successor
to Tenant pursuant to clauses (i) or (ii) above (the term “control” as
used herein shall be deemed to mean ownership (directly or indirectly) of more
than 50% of the outstanding voting stock of a corporation, or other majority
equity and control interest if Tenant is not a corporation and (any such entity
being a “Related Entity”, and in addition, for purposes of this Article
12 only, BNP Paribas and its successors by merger, consolidation or other transaction
as described in items (i) and (ii) above, shall be deemed to be a “Related
Entity” of the Tenant Named Herein). Tenant may also sublease all or any
portion of the Premises to a Related Entity without the consent of Landlord. Any
assignment or subletting described above may only be made upon the condition
that (a) any such assignee or subtenant shall continue to use the Premises
as permitted under Section 2.1 hereof, (b) the principal
purpose of such assignment or sublease is not the acquisition of Tenant’s
interest in this Lease, and (c) such assignor shall execute and deliver to
Landlord an acknowledgement and agreement of Tenant Named Herein’s and any such
assignor’s ongoing

 

37

 

liability and obligations under this Lease in the form attached hereto
as Exhibit “F” (each, an “Acknowledgement and Agreement”). Tenant
shall, within ten (10) Business Days after execution thereof, deliver to
Landlord (a) a duplicate original instrument of assignment in form and
substance reasonably satisfactory to Landlord, duly executed by Tenant, unless
such assignment shall have been made pursuant to clause (A)(i) above,
(b) an instrument in form and substance reasonably satisfactory to
Landlord, duly executed by the assignee, in which such assignee shall assume
observance and performance of, and agree to be personally bound by, all of the
terms, covenants and conditions of this Lease on Tenant’s part to be observed
and performed from and after the effective date of such assignment, and
(c) an Acknowledgement and Agreement duly executed by the assignor. Except
as set forth above, either a transfer of a controlling interest in the shares
of Tenant (if Tenant is a corporation) or a transfer of a majority of the total
interest in Tenant (if Tenant is an entity other than a corporation) at any one
time or over a period of time through a series of transfers, shall be deemed an
assignment of this Lease and shall be subject to all of the provisions of this Article 12,
including, without limitation, the requirement that Tenant obtain Landlord’s
prior consent thereto. The transfer of shares of Tenant (if Tenant is a
corporation) for purposes of this Section 12.4 shall not include
the sale of shares by persons other than those deemed “insiders” within the
meaning of the Securities Exchange Act of 1934, as amended, which sale is
effected through the “over-the-counter market” or through any recognized stock
exchange. Prior to the effective date of such transfer Tenant shall certify
that the provisions in the immediately preceding sentence are true and accurate.
Any assignment of this Lease or sublet of all or a portion of the Premises
pursuant to this Section 12.5 shall not be subject to Landlord’s
rights pursuant to Sections 12.6(B), (C), (D), (E)
or F, or 12.7, or 12.8(B), (C), (D), (E),
(G) hereof or entitle Landlord to any Sublease Profit or Assignment
Profit derived therefrom.

 

Section 12.6

 

(A)          At
such time as Tenant elects to sublease all or any portion of the Premises for
which Landlord’s consent is required, Tenant shall submit a statement to
Landlord (a “Sublease Statement”) containing the following
information:  (a) a description of,
and a scale drawing or floor plan identifying, the portion of the Premises to
be sublet, (b) the terms and conditions of the proposed subletting
including the rent payable, (c) Tenant’s reasonable estimation of the
Sublease Rent (as hereinafter defined) to be paid pursuant to such proposed
sublease, and (d) any other information that Landlord may reasonably request.

 

(B)           (1)  In the case of any proposed subletting of all
or any portion of the Premises, Landlord shall have the right to sublet (in its
own name or that of its designee) such portion of the Premises (the “Recapture
Space”) from Tenant on the terms and conditions set forth in Section 12.6(C)
below.

 

(2)           In
the case of a proposed subletting of any portion of the Premises for a term
which expires not more than twenty-four (24) months prior to the Fixed
Expiration Date and as to which Landlord has a right to sublease as provided in
Section 12.6(B)(1), in addition to the right set forth in Section 12.6(B)(1)
above, Landlord shall also have the option to terminate this Lease as to such
portion of the Premises proposed to be sublet on the terms set forth in Section 12.6(E)
below.

 

38

 

(3)           Landlord
shall exercise one of its options under this Section 12.6(B), if at
all, by notice given to Tenant within forty-five (45) days (such date, the “Sublease
First Decision Date”) after receipt of a Sublease Statement. If Landlord
shall fail to notify Tenant of Landlord’s intention to exercise its rights
pursuant to this Section 12.6(B), Tenant shall be free to sublease
that portion of the Premises at a net economic rental equal to at least
ninety-two and one-half percent (92.5%) of the net economic rental set forth in
the Sublease Statement, subject to the terms and conditions of this Lease,
including Section 12.6(E). If Tenant shall not enter into such
sublease within twelve (12) months after the delivery of the Sublease Term
Sheet to Landlord, then the provisions of Section 12.1 and this Section 12.6
shall again be applicable to any other proposed subletting for which Landlord’s
consent is required. If Tenant shall enter into such sublease within the twelve
(12) month as aforesaid, Tenant shall deliver a true, complete and fully
executed counterpart of such sublease to Landlord within five (5) days after
execution thereof.

 

(4)           If
Landlord shall not exercise its rights pursuant to this Section 12.6(B)
and Tenant during the next twelve (12) months shall not be able to sublease at
a net economic rental equal to at least 92.5% of the net economic rental set
forth in the Sublease Statement as to the applicable space, Tenant shall have
the right to submit to Landlord an executed bona fide term sheet with a
prospective subtenant (the “Sublease Term Sheet”) setting forth the
lower net economic rent. In such event, Landlord shall again have the recapture
and termination rights set forth in Sections 12(B)(1) and (2)
above, which rights shall be exercisable by notice to Tenant within thirty (30)
days (such date, the “Sublease Second Decision Date”). If Landlord shall
fail to notify Tenant on or prior the Sublease Second Decision Date of Landlord’s
intention to exercise its rights pursuant to this Section 12.6(B),
then Tenant shall be free to sublease that portion of the Premises to such
proposed subtenant on the same terms and conditions set forth in the Sublease
Term Sheet, subject to the terms and conditions of this Lease, including Section 12.6(E).

 

(C)           (1)
If Landlord exercises its option to sublet the Recapture Space, such sublease
to Landlord or its designee as subtenant (each, a “Recapture Sublease”)
shall:

 

(a)           be at a rent equal to the lesser of (i) the rentals set
forth in the Sublease Statement or Sublease Term Sheet, as applicable, or
(ii) the Rental which would be payable by Tenant with respect to such
Recapture Space for the comparable period(s) pursuant to this Lease;

 

(b)           be upon the same terms and conditions as set forth in the
Sublease Statement or Sublease Term Sheet, as applicable, and as otherwise
contained in this Lease, except such as are irrelevant or inapplicable due to
the fact that Landlord is landlord hereunder and except as otherwise expressly
set forth to the contrary in this paragraph (C);

 

(c)           give the subtenant the unqualified and unrestricted right,
without Tenant’s permission, to assign such sublease and to further sublet the
Recapture Space or any part thereof and to make any and all changes,
alterations, and improvements in the Recapture Space; provided that Tenant
shall be released from any and all liability arising in connection with the
acts or omissions of any subsequent assignee or subtenant and with respect to
any such changes, alterations and improvements, and that no default under such
Recapture

 

39

 

Sublease shall be deemed to be a default under this Lease unless the
act or omission giving rise to such default under the Recapture Sublease would
independently give rise to a default under this Lease in the absence of such
Recapture Sublease;

 

(d)           provide in substance that any such changes, alterations, and
improvements made in the Recapture Space may be removed, in whole or in part,
prior to or upon the expiration or other termination of the Recapture Sublease
provided that any material damage and injury caused thereby shall be repaired
by the subtenant prior to delivery of the space to Tenant and that the space
shall be restored to the condition that existed on the date that Tenant
surrendered such space, subject to ordinary office alterations and any
restoration obligations set forth in the Sublease Statement or Sublease Term
Sheet, provided that Tenant shall have no restoration obligation for any
Alterations made in connection with any Recapture Sublease, as applicable;

 

(e)           provide that (i) the parties to such Sublease expressly
negate any intention that any estate created under such Sublease be merged with
any other estate held by either of said parties, (ii) prior to the commencement
of the term of the Recapture Sublease, the party responsible for the following
as set forth in the Sublease Statement or Sublease Term Sheet, as applicable,
or if no party is indicated as responsible for the following, Landlord, at its
expense, shall make such alterations as may be required or reasonably deemed
necessary by the subtenant to physically separate the Recapture Space from the
balance of the Premises and to provide appropriate means of ingress to and
egress thereto and to the public portions of the balance of the floor such as
toilets, janitor’s closets, telephone and electrical closets, fire stairs,
elevator lobbies, etc., and (iii) at the expiration of the term of such
Sublease, Tenant will accept the Recapture Space in its then existing
condition, broom clean, subject to the requirements of Section 12.6(C)(1)(d)
above;

 

(f)            provide that Landlord shall pay
to Tenant, upon receipt thereof, an amount equal to fifty percent (50%) of all
Sub-sublet Profits (as hereinafter defined); and

 

(g)           provide that simultaneously with the execution of such
Recapture Sublease, the Rental payable under this Lease shall be reduced by an
amount equal to all of the sums due and payable under such Recapture Sublease
for the term of such Recapture Sublease, provided that such sums shall not
exceed the Rental payable under this Lease for such period.

 

(2)           If
Landlord is unable to give Tenant possession of the Recapture Space at the
expiration of the term of the Recapture Sublease by reason of the holding over
or retention of possession of any tenant or other occupant, then (w) Landlord
shall continue to pay all charges previously payable under the Recapture
Sublease until the date upon which Landlord shall give Tenant possession of
such Recapture Space free of occupancies, (x) neither the Expiration Date nor
the validity of this Lease shall be affected, and (y) Tenant waives any rights
under Section 223-a of the Real Property Law of New York, or any successor
statute of similar import, to rescind this Lease and further waives the right
to recover any damages from Landlord which may result from the failure of
Landlord to deliver possession of the Recapture Space at the end of the term of
the Recapture Sublease, and (z) Landlord, at Landlord’s expense,

 

40

 

shall use its reasonable efforts to deliver possession of such
Recapture Space to Tenant and in connection therewith, if necessary, shall
institute and in good faith diligently prosecute holdover and any other
appropriate proceedings against the occupant of such Space.

 

(3)           The
failure by Landlord to exercise its option under Section 12.6(B) with
respect to any subletting shall not be deemed a waiver of such option with
respect to (i) any extension of such subletting unless such extension shall be
expressly set forth in the Sublease Statement or the Sublease Term Sheet, as
applicable, originally submitted to Landlord pursuant to Section 12.6(A)
or (B) hereof, as applicable, or (ii) any subsequent subletting of the
Premises affected thereby.

 

(D)          If
Landlord exercises Landlord’s option to terminate this Lease as to all or a
portion of the Premises pursuant to Section 12.6(B), Tenant shall vacate
the Recapture Space on or before the date specified in Landlord’s notice (each,
a “Sublet Termination Date”) which date shall be not earlier than one
(1) day prior to nor later than one (1) day after the proposed commencement
date of the proposed subletting, and (i) if the Recapture Space shall be all or
substantially all of the Premises, this Lease shall terminate with respect to
all of the Premises on such Sublet Termination Date and such Sublet Termination
Date shall be deemed to be the Expiration Date of this Lease, or (ii) if the
Recapture Space shall be less than all or substantially all of the Premises,
this Lease shall terminate with respect to such Recapture Space on such Sublet
Termination Date and such Sublet Termination Date shall be deemed to be the
Expiration Date of this Lease as to such Recapture Space as if such date were
the Expiration Date of this Lease. In the case of a termination of this Lease
with respect to only a portion of the Premises, from and after the Sublet
Termination Date, this Lease shall be deemed amended to (a) eliminate the
Recapture Space from the Premises, (b) reduce the Fixed Rent payable hereunder
by an amount equal to the product of (1) the amount of rentable square feet in
the Recapture Space and (2) a fraction, the numerator of which shall be the
Fixed Rent payable hereunder immediately prior to such termination and the
denominator of which shall be the Space Factor immediately prior to such
termination, (c) reduce the Space Factor and the Tenant’s Share to reflect the
elimination of the Recapture Space from the Premises, and (d) make such other
changes as are appropriate to reflect the elimination of the Recapture Space
from the Premises; upon request of either party, Landlord and Tenant shall
execute a written amendment to this Lease setting forth the foregoing
modifications, but failure by either party to execute such an amendment shall
not detract from the effectiveness of any of the foregoing modifications; and
Landlord, at Landlord’s expense, shall make such alterations as may be required
to separate physically the Recapture Space from the remainder of the Premises
and to comply with all Requirements, Rules and Regulations and insurance
requirements (including the removal of internal staircases), shall construct
any doorways required to provide direct access between the elevators and public
staircase on the floor and the Recapture Space and, at Landlord’s expense,
shall repair or restore to tenantable condition any part of the remainder of
the Premises which is damaged by such separation. In the event of any
termination of this Lease and the Term pursuant to the provisions of this Section
12.6(D), the Fixed Rent, Escalation Rent, and Electricity Additional Rent
shall be apportioned as of the Sublet Termination Date, and any prepaid portion
of Fixed Rent, Escalation Rent and additional rent for any period after the
Sublet Termination Date shall be refunded by Landlord to Tenant.

 

41

 

(E)           Notwithstanding
the provisions of Section 12.1 hereof, if Landlord shall not exercise
its rights pursuant to Section 12.6(B), Landlord shall not unreasonably
withhold or delay its consent to any subletting of the Premises (if Tenant
proposes to sublet a portion of the Premises then, unless the context otherwise
requires, references in this Section 12.6 to the Premises shall be
deemed to refer to the portion of the Premises proposed to be sublet by
Tenant), provided that:

 

(1)           the
Premises shall not, without Landlord’s prior consent, have been publicly
advertised for subletting at a rental rate less than the prevailing rental rate
set by Landlord for comparable available space in the Building (the “Prevailing
Rate”), provided however, that the foregoing shall not prohibit Tenant from
listing the Premises with any brokers or listing the space on any computer
service or posting flyers without such rents being listed;

 

(2)           no
Event of Default shall have occurred and be continuing;

 

(3)           the
proposed subtenant shall have the financial wherewithal relative to its
liabilities and obligations, including, without limitation, its obligations
under such proposed sublease, be of a character, be engaged in a business, and
propose to use the Premises in a manner, all in keeping with the standards in such
respects of the other tenancies in the Building;

 

(4)           the
proposed subtenant shall not be a person or entity (a) with whom Landlord is
then actively negotiating or has received or given an offer to lease comparable
space in the Building within the past six (6) months or (b) which is then a
tenant in the Building if Landlord has or reasonably expects to have space
available in the Building comparable in size, term and availability to the
space Tenant proposes to sublet;

 

(5)           the
character of the business to be conducted or the proposed use of the Premises
by the proposed subtenant shall not (a) be likely to increase Landlord’s
operating expenses beyond that which would be incurred for use in accordance
with the standards of use of other tenancies in the Building by more than a de
minimis amount; (b) increase the burden on existing cleaning services over the
burden prior to such proposed subletting or elevators over the burden which
would be incurred for use in accordance with the standards of use of other
tenancies in the Building by more than a de minimis amount; (c) require any
alterations to be performed in or made to any portion of the Building or the
Real Property other than the Premises; (d) violate any provision or
restrictions herein relating to the use or occupancy of the Premises, or (e)
require Landlord to perform any alterations at Landlord’s expense;

 

(6)           the
subletting shall be expressly subject to all of the terms, covenants,
conditions and obligations on Tenant’s part to be observed and performed under
this Lease and the further condition and restriction that the sublease shall
not be assigned, encumbered or otherwise transferred or the subleased premises
further sublet by the subtenant in whole or in part, or any part thereof
suffered or permitted by the subtenant to be used or occupied by others,
without the prior written consent of Landlord in each instance to the extent
required under this Article 12;

 

42

 

(7)           any
subletting shall end no later than one (1) day before the Expiration Date and
shall not be for a term of less than two (2) years unless it commences less
than two (2) years before the Expiration Date;

 

(8)           no
subletting shall be for less than 5,000 contiguous rentable square feet and at
no time shall there be more than three (3) occupants, including Tenant and any
Permitted Licensees, in the Premises;

 

(9)           Tenant
shall reimburse Landlord within twenty (20) days following demand for any
reasonable out-of-pocket costs that may be incurred by Landlord in connection
with said sublease, including, without limitation, reasonable attorneys’ fees
and disbursements and the reasonable costs of making investigations as to the
acceptability of the proposed subtenant; and

 

(10)         any
sublease shall expressly provide that in the event of termination, re-entry or
dispossess of Tenant by Landlord under this Lease, Landlord may, at its option,
take over all of the right, title and interest of Tenant, as sublessor under
such sublease, and such subtenant shall, at Landlord’s option, attorn to
Landlord pursuant to the then executory provisions of such sublease, except
that Landlord shall not (i) be liable for any previous act or omission of
Tenant under such sublease except to the extent that any such act or omission
on the part of Landlord shall continue after Landlord shall take over Tenant’s
interest, (ii) be subject to any offset, not expressly provided for in such
sublease, which therefore accrued to such subtenant against Tenant, (iii) be
bound by any previous modification of such sublease not expressly provided for
in such sublease or otherwise reasonably consented to by Landlord or by any
previous prepayment of more than one month’s rent unless previously approved by
Landlord, (iv) be bound by any covenant to undertake or complete any
construction of the premises or any portion thereof demised by such sublease
and (v) be bound by any obligation to make any payment to or on behalf of the
subtenant, except for services, repairs, maintenance and restoration provided
for under the sublease to be performed after the date of such termination, re-entry
or dispossess by Landlord under this Lease and which Landlord is required to
perform hereunder with respect to the subleased space at Landlord’s expense, it
being expressly understood, however, that Landlord shall not be bound by any
obligation to make payment to or on behalf of a subtenant with respect to
construction performed by or on behalf of such subtenant at the subleased
premises.

 

(F)           In
each instance in which Landlord’s consent to a subletting is required, Landlord
shall notify Tenant of Landlord’s approval or disapproval of such proposed
sublease within fifteen (15) Business Days. If Tenant shall not enter into such
sublease within one hundred fifty (150) days after the delivery of the Sublease
Term Sheet to Landlord, then the provisions of Section 12.1 and this Section
12.6 shall again be applicable to any other proposed subletting for which
Landlord’s consent is required. If Tenant shall enter into such sublease within
one hundred fifty (150) days as aforesaid, Tenant shall deliver a true,
complete and fully executed counterpart of such sublease to Landlord within
five (5) days after execution thereof.

 

Section 12.7           (A)  In connection
with any subletting of all or any portion of the Premises to which Landlord
shall have granted its consent pursuant to Section 12.6 (except any
sublease to Landlord or its designee pursuant to Section 12.6(B)
hereof), Landlord shall be

 

43

 

entitled to and Tenant shall pay to Landlord a sum equal to fifty
percent (50%) of any Sublease Profit derived therefrom. All sums payable
hereunder by Tenant shall be calculated on a cash basis and shall be paid to
Landlord, as additional rent, within twenty (20) days after receipt thereof by
Tenant.

 

(B)           For
purposes of this Lease:

 

(1)           “Rent
Per Square Foot” shall mean the sum of the then Fixed Rent, Escalation Rent
and Electricity Additional Rent divided by the Space Factor.

 

(2)           “Sublease
Profit” shall mean the product of (x) the Sublease Rent Per Square Foot
less the Rent Per Square Foot, and (y) the number of rentable square feet
constituting the portion of the Premises sublet by Tenant.

 

(3)           “Sublease
Rent” shall mean any rent or other consideration paid to Tenant directly or
indirectly, by any subtenant, excluding Landlord or its designee pursuant to Section
12.6(B) hereof, or any other amount received by Tenant from or in
connection with any subletting (including, but not limited to, sums paid for
the sale or rental, or consideration received on account of any contribution in
excess of the fair market value of Tenant’s Property as determined by reputable
independent third party appraiser reasonably satisfactory to Landlord, of
Tenant’s Property, or sums paid in connection with the supply of electricity,
HVAC, or other services, other than those payments made to Tenant and paid by
Tenant to Landlord as a pass-through) after deducting therefrom the following
sublease expenses (the “Sublease Expenses”):  (i) the reasonable out-of-pocket cost and
expenses of Tenant in making such sublease such as brokers’ fees, attorneys’
fees, and advertising fees paid to unrelated third parties, (ii) rent
concessions, (iii) any sums paid to Landlord pursuant to paragraph (10)
of Section 12.6(E), (iv) the cost of improvements or alterations costs
made by Tenant expressly and solely for the purpose of preparing that part of
the Premises for such subtenancy (but not including any costs incurred in
connection with Tenant’s Initial Alterations), (iv) any cash allowance or work
allowance provided by Tenant, (v) actual moving expenses in connection with
relocating the subtenant from its prior premises to the Premises, and (vi) any
reasonable takeover costs of existing lease obligations of such subtenant and
the amount of any contributions for tenant improvements. In determining
Sublease Rent, the costs set forth in clauses (i), (ii), (iii) and (v)
shall be deducted as and when incurred by Tenant.

 

(4)           “Sublease
Rent Per Square Foot” shall mean the Sublease Rent divided by the rentable
square feet of the space demised under a sublease.

 

(5)           Sublease
Profit shall be recalculated from time to time to reflect any corrections in
the prior calculation thereof due to (i) subsequent payments received or made
by Tenant, (ii) the final adjustment of payments to be made by or to Tenant or
(iii) mistake. Promptly upon the making or receipt of any such discovery of any
such mistake, Tenant shall submit to Landlord a recalculation of the Sublease
Profit as the case may be, and an adjustment shall be made between Landlord and
Tenant, if applicable with respect thereto on account of prior payments made or
credits received pursuant to this Section 12.7.

 

44

 

(6)           Tenant
shall have no obligation to pay the Sublease Profit to Landlord unless and
until Tenant has recovered all Sublease Expenses.

 

(7)           As
used in this Section 12.7, “Tenant” shall also include any Related
Entity which shall then be the Tenant or a subtenant under this Lease..

 

(8)           “Sub-sublease
Profit” shall mean the product of (x) the Sub-sublease Rent Per Square Foot
less the Rent Per Square Foot, and (y) the number of rentable square feet
constituting the portion of the Premises sub-sublet by Landlord.

 

(9)           “Sub-sublease
Rent” shall mean any rent or other consideration paid to Landlord directly
or indirectly, by any sub-subtenant, or any other amount received by Landlord
from or in connection with any sub-subletting or assignment of a Recapture
Sublease after deducting therefrom the following sub-sublease expenses (the “Sub-sublease
Expenses”):  (i) the reasonable out-of-pocket
cost and expenses of Landlord in making such sub-sublease such as brokers’
fees, attorneys’ fees, and advertising fees paid to unrelated third parties,
(ii) the cost of improvements or alterations costs made by Landlord expressly
and solely for the purpose of preparing that part of the Premises for such
sub-subtenancy, and (iii) any reasonable takeover costs of existing lease
obligations of such sub-subtenant and the amount of any contributions for
sub-subtenant improvements. In determining Sub-sublease Rent, the costs set
forth in clauses (i), (ii), and (iii) shall be deducted as and
when incurred by Landlord.

 

(10)         “Sub-sublease
Rent Per Square Foot” shall mean the Sub-sublease Rent divided by the
rentable square feet of the space demised under a sub-sublease.

 

(11)         Sub-sublease
Profit shall be recalculated from time to time to reflect any corrections in
the prior calculation thereof due to (i) subsequent payments received or made
by Landlord, (ii) the final adjustment of payments to be made by or to Landlord
or (iii) mistake. Promptly upon the making or receipt of any such discovery of
any such mistake, Landlord shall submit to Tenant a recalculation of the
Sub-sublease Profit as the case may be, and an adjustment shall be made between
Landlord and Tenant, if applicable with respect thereto on account of prior
payments made or credits received pursuant to this Section 12.7.

 

(12)         Landlord
shall have no obligation to pay the Sub-sublease Profit to Tenant unless and
until Landlord has recovered all Sub-sublease Expenses.

 

(C)           In
connection with any subletting of all or any portion of the Premises to which
Landlord shall have granted its consent pursuant to Section 12.6, within
ten (10) Business Days after request therefor Landlord shall execute and
deliver to any Qualified Subtenant (as hereinafter defined) under any Qualified
Sublease (as hereinafter defined) an agreement to the effect that, if there
shall be a termination of all of this Lease or a partial termination of this
Lease affecting the portion of the Premises demised to such Qualified Subtenant
as a result of a default by Tenant hereunder, Landlord will not disturb such
Qualified Subtenant’s possession under such Qualified Sublease, or terminate or
disturb such Qualified Subtenant’s subleasehold estate or rights under such
Qualified Sublease (each, a “Subtenant Nondisturbance Agreement”). For
purposes hereof, (A) a “Qualified Subtenant” shall mean a subtenant
which (i) has gross revenues equal to not less than ten (10) times the
aggregate rental

 

45

 

obligation under the sublease pursuant to which such subtenant occupies
space in the Building (including, without limitation, any fixed rent,
escalation rent, operating expenses, taxes and other additional rent due
thereunder) and (ii) has other financial qualifications reasonably satisfactory
to Landlord taking into consideration, without limitation, the security
deposited by such subtenant in connection with its sublease obligations and any
guaranty securing such obligations, and (B) a “Qualified Sublease” shall
mean a sublease (i) demising the entire Premises, (ii) having a monthly rent
not less than the Rental which would be due for the equivalent time period
pursuant to this Lease, or, if less, such subtenant agrees in the Subtenant
Nondisturbance Agreement that if this Lease is terminated by reason of Tenant’s
default under such sublease will be increased accordingly, and (iii) having an
original term of not less than five (5) years.

 

Section 12.8

 

(A)          At
such time as Tenant elects to enter into an assignment of this Lease for which
Landlord’s consent is required, Tenant shall submit a statement to Landlord (an
“Assignment Statement”) containing the following information:  (a) the terms and conditions of the proposed
assignment including the consideration for such assignment and the value
(including cost, overhead and supervision) of any improvements (including any
demolition to be performed), (b) Tenant’s reasonable estimation of the
Assignment Proceeds (as hereinafter defined) to be paid pursuant to such
proposed assignment, and (c) any other information that Landlord may reasonably
request.

 

(B)           (1)           In
the case of any proposed assignment of Tenant’s right, title and interest in
and to this Lease (unless the proposed assignee is a Related Entity of Tenant),
Landlord shall have the right (x) to take an assignment (in its own name or
that of its designee) of all of Tenant’s right, title and interest in and to
this Lease in its entirety on the terms and conditions set forth in Section
12.8(D) below or (y) to terminate this Lease in whole on the terms set
forth in Section 12.8(E) below.

 

(2)           Landlord
shall exercise one of its options under this Section 12.8(B), if at all,
by notice given to Tenant within forty-five (45) days (such date, the “Assignment
First Decision Date”) after receipt of an Assignment Statement. If Landlord
shall fail to notify Tenant of Landlord’s intention to exercise its rights
pursuant to this Section 12.8(B), Tenant shall be free to assign this
Lease at a net economic rental equal to at least ninety-two and one-half
percent (92.5%) of the net economic rental set forth in the Assignment
Statement, subject to the terms and conditions of this Lease, including Section
12.8(E). If Tenant shall not enter into such assignment within twelve (12)
months after the delivery of the Assignment Statement to Landlord, then the
provisions of Section 12.1 and this Section 12.8 shall again be
applicable to any other proposed assignment for which Landlord’s consent is
required.

 

(C)           If
Landlord shall not exercise its rights pursuant to Section 12.8(B) and
Tenant during the next twelve (12) months shall not be able to assign at a net
economic rental equal to at least 92.5% of the net economic rental set forth in
the Assignment Statement as to the applicable space, Tenant shall have the
right to submit to Landlord an executed bona fide term sheet with a prospective
assignee (the “Assignment Term Sheet”) setting forth the lower net
economic rent. In such event, Landlord shall again have the recapture and
termination rights set

 

46

 

forth in Sections 12.8(B)(1) and (2) above, which rights
shall be exercisable by notice to Tenant within thirty (30) days (such date,
the “Assignment Second Decision Date”). If Landlord shall fail to notify
Tenant on or prior the Assignment Second Decision Date of Landlord’s intention
to exercise its rights pursuant to this Section 12.8(C), then Tenant
shall be free to assign this Lease to such proposed assignee on the same terms
and conditions set forth in the Assignment Term Sheet, subject to the terms and
conditions of this Lease, including Section 12.8(E).

 

(D)          (1)
If Landlord exercises its option to take an assignment of this Lease pursuant
to Section 12.8(B) above, such assignment to Landlord or its designee as
assignee (each, a “Recapture Assignment”) shall:

 

(a)           be upon the same terms and conditions as set forth in the
Assignment Statement or the Assignment Term Sheet, as the case may be, and as
otherwise contained in this Lease, except Landlord shall not be obligated to
pay to Tenant any consideration, including, without limitation, the Assignment
Proceeds (as such term is hereinafter defined) with respect to such assignment,
and except as such terms and conditions are irrelevant or inapplicable due to
the fact that Landlord is landlord hereunder and except as otherwise expressly
set forth to the contrary in this paragraph (D);

 

(b)           give the assignee the unqualified and unrestricted right,
without Tenant’s permission, to further assign this Lease and to sublet the
Premises or any part thereof and to make any and all changes, alterations, and
improvements in the Premises; provided that Tenant shall be released
from any and all liability arising in connection with a default under this
Lease unless the act or omission giving rise to such default under the
Recapture Assignment would independently give rise to a default under this
Lease in the absence of such Recapture Assignment;

 

(c)           provide that the parties to such Recapture Assignment
expressly negate any intention that any estate created under such Recapture
Assignment be merged with any other estate held by either of said parties; and

 

(d)           provide that Landlord shall pay to Tenant, upon receipt
thereof, an amount equal to fifty percent (50%) of all Recapture Assignment
Profits (as hereinafter defined).

 

(e)           “Recapture Assignment Profit” shall mean the product
of (x) the Recapture Assignment Rent Per Square Foot less the Rent Per Square
Foot, and (y) Space Factor.

 

(f)            “Recapture Assignment Rent”
shall mean any rent or other consideration paid to Landlord directly or
indirectly, by any lessee of the Premises following a Recapture Assignment, or
any other amount received by Landlord from or in connection with any Recapture
Assignment after deducting therefrom the following recapture assignment expenses
(the “Recapture Assignment Expenses”): 
(i) the reasonable out-of-pocket cost and expenses of Landlord in making
such lease such as brokers’ fees, attorneys’ fees, and advertising fees paid to
unrelated third parties, (ii) the cost of improvements or alterations costs
made by Landlord expressly and solely for the purpose of preparing the Premises
for such tenancy, and

 

47

 

(iii) any takeover costs of existing lease obligations of such tenant
and the amount of any contributions for tenant improvements. In determining
Recapture Assignment Rent, the costs set forth in clauses (i), (ii), and
(iii) shall be deducted as and when incurred by Landlord.

 

(g)           “Recapture Assignment Rent Per Square Foot” shall
mean the Recapture Assignment Rent divided by the rentable square feet of the
space demised under the applicable lease.

 

(h)           Recapture Assignment Profit shall be recalculated from time
to time to reflect any corrections in the prior calculation thereof due to (i)
subsequent payments received or made by Landlord, (ii) the final adjustment of
payments to be made by or to Landlord or (iii) mistake. Promptly upon the
making or receipt of any such discovery of any such mistake, Landlord shall
submit to Tenant a recalculation of the Recapture Assignment Profit as the case
may be, and an adjustment shall be made between Landlord and Tenant, if
applicable with respect thereto on account of prior payments made or credits
received pursuant to this Section 12.8.

 

(i)            provide that simultaneously with
the execution of such Recapture Assignment, the Rentable payable under this
Lease shall be reduced by an amount equal to all of the sums due and payable
under such Recapture Assignment, provided that such sums shall not exceed the Rental
payable under this Lease for such period.

 

(2)           The
failure by Landlord to exercise its option under Section 12.8(B) with
respect to any assignment shall not be deemed a waiver of such option with
respect to any subsequent assignment of this Lease.

 

(E)           If
Landlord exercises Landlord’s option to take an assignment of this Lease or
terminate this Lease pursuant to Section 12.8(B), Tenant shall vacate
the Premises on or before the date specified in Landlord’s notice (the “Assignment
Termination Date”) which date shall be not earlier than one (1) day prior
to or later than one (1) day after the proposed date of effectiveness of the
proposed assignment, and this Lease shall terminate with respect to all of the
Premises on such Assignment Termination Date and such Assignment Termination
Date shall be deemed to be the Expiration Date of this Lease. In the event of
any termination of this Lease and the Term pursuant to the provisions of Section
12.8(B), the Fixed Rent, Escalation Rent, and Electricity Additional Rent
shall be apportioned as of the Assignment Termination Date, and any prepaid
portion of Fixed Rent, Escalation Rent and Additional Rent for any period after
the Assignment Termination Date shall be refunded by Landlord to Tenant.

 

(F)           Notwithstanding
the provisions of Section 12.1 hereof, if Landlord shall not exercise
its rights pursuant to Section 12.8(B), Landlord shall not unreasonably
withhold or delay its consent to any assignment of all of Tenant’s right, title
and interest in, to and under this Lease, provided that:

 

(1)           the
Premises shall not, without Landlord’s prior consent, have been publicly
advertised for assignment at a rental rate less than the Prevailing Rate,
provided, however, that the foregoing shall not prohibit Tenant from listing
the Premises with

 

48

 

any brokers, listing the space on any computer service, or posting
flyers without such rents being listed;

 

(2)           no
Event of Default shall have occurred and be continuing;

 

(3)           the
proposed assignee shall have the financial wherewithal relative to its
liabilities and obligations, including, without limitation, its obligations
under such proposed assignment, be of a character, be engaged in a business,
and propose to use the Premises in a manner, all in keeping with the standards
in such respects of the other tenancies in the Building;

 

(4)           the
proposed assignee shall not be a person or entity (a) with whom Landlord is
then actively negotiating or has received or given an offer to lease comparable
space in the Building within the past six (6) months or (b) which is then a
tenant in the Building if Landlord has or reasonably expects to have space
available in the Building comparable in size, term and availability to the
Premises;

 

(5)           the
character of the business to be conducted or the proposed use of the Premises
by the proposed assignee shall not (a) be likely to increase Landlord’s
operating expenses beyond that which would be incurred for use in accordance
with the standards of use of other tenancies in the Building by more than a de
minimis amount; (b) increase the burden on existing cleaning services over the
burden prior to such proposed assignment or elevators over the burden which
would be incurred for use in accordance with the standards of use of other
tenancies in the Building by more than a de minimis amount; (c) require any
alterations to be performed in or made to any portion of the Building or the
Real Property other than the Premises; (d) violate any provision or restrictions
herein relating to the use or occupancy of the Premises, or (e) require
Landlord to perform any alterations at Landlord’s expense;

 

(6)           [intentionally
omitted]; and

 

(7)           Tenant
shall reimburse Landlord within twenty (20) days following demand for any reasonable
out-of-pocket costs that may be incurred by Landlord in connection with said
assignment, including, without limitation, reasonable attorneys’ fees and
disbursements and the reasonable costs of making investigations as to the
acceptability of the proposed assignee.

 

(G)           Tenant
shall pay to Landlord, upon receipt thereof, an amount equal to fifty percent
(50%) of all Assignment Proceeds. For purposes of this paragraph (E), “Assignment
Proceeds” shall mean all consideration paid to Tenant, directly or indirectly;
by any assignee, or any other amount received by Tenant from or in connection
with any assignment (including, but not limited to sums paid for the sale or
rental, or consideration received on account of any contribution in excess of
the fair market value of Tenant’s Property as determined by a reputable
independent third party appraiser reasonably satisfactory to Landlord, of
Tenant’s Property, or sums paid in connection with the supply of electricity,
HVAC, or other services, other than those payments made to Tenant and paid by
Tenant to Landlord as a pass-through) after deducting therefrom the following
assignment expenses (the “Assignment Expenses”): (i)

 

49

 

the reasonable out-of-pocket cost and expenses of Tenant in making such
assignment such as brokers’ fees, attorneys’ fees, and advertising fees paid to
unrelated third parties, (ii) the cost of improvements or alterations costs
made by Tenant expressly and solely for the purpose of preparing the Premises
for such assignment, (iii) the unreimbursed cost of any Tenant’s Property
leased to and used by such assignee amortized in accordance with the schedule
set forth on Tenant’s federal income tax returns and (iv) any reasonable
takeover costs of existing lease obligations of such assignee and the amount of
any contributions for tenant improvements. In determining Assignment Proceeds,
the costs set forth in clauses (i) (ii), and (iv) shall be
deducted as and when incurred by Tenant.

 

(H)          If
Tenant shall assign its right, title and interest in and to this Lease, Tenant
shall deliver to Landlord, within five (5) days after execution thereof, (x) a
duplicate original instrument of assignment duly executed by Tenant, (y) an
instrument in form and substance reasonably satisfactory to Landlord, duly
executed by the assignee, in which such assignee shall assume observance and
performance of, and agree to be personally bound by, all of the terms,
covenants and conditions of this Lease on Tenant’s part to be observed and
performed from and after the date of such assignment and (z) an Acknowledgement
and Agreement, executed by the originally-named Tenant under this Lease and any
subsequent Tenant who shall be the assignor under such assignment agreement.

 

Section 12.9           If this Lease shall have been assigned by the Tenant Named
Herein in accordance with the terms and conditions of this Lease, Landlord
shall give the Tenant Named Herein a copy of each notice of default given by
Landlord to the then current tenant under this Lease. Except if Landlord shall
execute and deliver a written instrument releasing the Tenant Named Herein from
any further liability under this Lease, Landlord shall not have any right to
terminate this Lease (except by reason of the bankruptcy or insolvency of such
tenant), after a default by such current tenant, unless and until (A) Landlord
shall have made a demand on the then tenant to cure the default in question,
(B) Landlord shall have complied with its obligation to give notice to the Tenant
Named Herein in accordance with the preceding sentence, and (C) the Tenant
Named Herein has not cured all then existing monetary defaults of the then
tenant or does not diligently prosecute to completion the cure of all then
existing non-monetary defaults of the then tenant which are susceptible of cure
by the Tenant Named Herein, in either case within the time periods set forth in
this Lease (such time periods, with respect to the Tenant Named Herein, being
deemed to run from the date that Landlord gives such Tenant Named Herein a copy
of the default notice in question). Landlord shall accept timely performance by
the Tenant Named Herein of any term, covenant, provision or agreement contained
in this Lease on the then current tenant’s part to be observed and performed
with the same force and effect as if performed by the then current tenant. If
the Tenant Named Herein shall cure the default by such current tenant, and
Landlord or the current tenant seeks to terminate this Lease, then in each such
case the Tenant Named Herein shall have the right to enter into a new lease
with Landlord upon all of the then executory terms of this Lease, and to resume
actual possession of the Premises for the unexpired balance of the Term;
provided that on or prior to the date that Landlord executes and delivers to
the Tenant Named Herein such new lease, the Tenant Named Herein shall have
cured all prior monetary defaults of the then current tenant and, upon resuming
actual possession of the Premises under such new lease, the Tenant Named Herein
shall cure all prior non-monetary defaults of the then current tenant which are
susceptible of cure by the Tenant Named Herein.

 

50

 

Section 12.10         Notwithstanding anything to the contrary in this Article
12, Tenant shall have the right to permit occupancy of the Premises by and
to enter into license agreements with individuals, bona fide clients of Tenant,
or such entities that have a substantial business relationship with Tenant (“Permitted
Licensees”), without Landlord’s consent but upon notice to Landlord setting
forth the names of such individuals or entities, pursuant to which such
Permitted Licensees may occupy individual offices in the Premises, which
offices shall not be separately demised or have a separate entrance or
reception area; provided, however, that (i) in no event shall the
space occupied by such Permitted Licensees exceed, in the aggregate, more than
5,000 rentable square feet in the Premises, (ii) in no event shall such Permitted
Licensees be separately identified within the Premises (provided that such
Permitted Licensees may be identified in the Building directory in accordance
with this Lease), and (iii) each such Permitted Licensee shall provide to
Landlord a certification certifying that such Permitted Licensee does not have
a sublease or any other real property interest in the Real Property.
Notwithstanding the foregoing, Tenant shall not license or otherwise grant the
right to occupy any portion of the Premises to any Person (or any Person which
would in turn permit such occupation) who in Landlord’s reasonable judgment
would (a) subject the Premises or the Building to unfavorable publicity, (b)
adversely affect the value of the Building, (c) adversely affect Landlord’s
ability to manage or operate the Building, or (d) adversely affect Landlord’s
ability to mortgage, transfer, sell or otherwise exercise its ownership
interest in connection with the Building.

 

ARTICLE 13

ELECTRICITY

 

Section 13.1           Tenant shall at all times comply with the rules,
regulations, terms and conditions applicable to service, equipment, wiring and
requirements of the public utility supplying electricity to the Building. The
risers servicing the Premises shall be capable of furnishing six (6) watts
demand load of electricity per usable square foot of the Premises (exclusive of
the electricity required to furnish the Building HVAC to the Premises). Tenant’s
use and consumption of electricity shall not exceed a demand load of six (6)
watts per usable square foot of the Premises. Tenant shall not use any
electrical equipment which, in Landlord’s sole reasonable judgment, would
exceed such capacity of the risers serving the Premises or interfere with the
electrical service to other tenants of the Building. In the event that, in
Landlord’s sole reasonable judgment, Tenant’s electrical requirements exceed
such capacity, Landlord shall so notify Tenant of same, and Tenant shall
immediately cease such usage, subject to the provisions of this Section 13.1.
Within five (5) days after receipt of such notice, Tenant shall notify Landlord
that it shall permanently cease such usage or shall request that additional
electrical capacity (specifying the amount requested) be made available to
Tenant. Landlord, in Landlord’s sole judgment, shall determine whether to make
available such additional electrical capacity to Tenant and the amount, if any,
to be made available. If Landlord shall agree to make available such additional
electrical capacity and the same necessitate installation of an additional
riser, risers or other proper and necessary equipment, the same shall be
installed by Landlord, within the limits of the switchgear; provided, however,
that Landlord, in Landlord’s sole reasonable judgment (taking into consideration
the potential needs of present and future tenants of the Building and of the
Building itself), determines that such installation is practicable. Any such
installation shall be made by Landlord and Landlord’s reasonable out-of-pocket
expense shall be chargeable to Tenant and collectible as additional rent and
paid within twenty (20) days

 

51

 

after the rendition of a bill to Tenant therefor. Prior to the
performance of such installation Landlord shall submit to Tenant a good faith
estimate of the out-of-pocket cost of same as performed by an unrelated third
party. Within ten (10) Business Days after receipt of said estimate, Tenant may
notify Landlord whether it desires for Landlord to proceed with such
installation. If Tenant shall notify Landlord that it desires for Landlord not
to proceed or if Tenant fails to notify Landlord within such ten (10) Business
Day period, Landlord shall not perform such installation and shall not be
required to make available to the Premises the additional electrical capacity. If
Tenant shall fail to notify Landlord in a timely fashion or shall elect to have
Landlord proceed with said installation, Landlord shall perform said
installation, at Tenant’s expense, and shall not be liable or obligated to
Tenant if the out-of-pocket cost of such installation exceeds the estimate. If
Landlord, in Landlord’s sole judgment, shall determine not to make available
such additional electrical capacity, Tenant shall have no further right to such
additional capacity. Landlord shall not be liable in any way to Tenant for any
failure or defect in the supply or character of electric service furnished to
the Premises by reason of any requirement, act or omission of the utility
serving the Building or for any other reason not attributable to the gross
negligence or willful malfeasance of Landlord or Landlord’s employees, agents,
contractors or designees whether electricity is provided by public or private
utility or by any electricity generation system owned and operated by Landlord.

 

Section 13.2           (A)  Unless Landlord
is required by any Requirement or by the rules and regulations of the public
utility to have Tenant obtain electricity from the public utility company
furnishing electricity to the Building pursuant to the provisions of Section
13.3 hereof, electricity shall be supplied by Landlord to the Premises and
Tenant shall pay to Landlord, as additional rent for such service, the amounts
(the “Electricity Additional Rent”) as determined by a meter or submeter
(installed by Landlord, at Landlord’s cost prior to Landlord’s delivery of the
Premises to Tenant, for the purposes of measuring such consumption) at charges,
terms and rates set from time to time during the Term by the public utility
corporation serving the Building under the service classification in effect
pursuant to which Landlord purchases electricity for the entire Building, plus
an amount equal to five percent (5%) of the charge therefor as Landlord’s
administrative charge for overhead and supervision.

 

(B)           Where
more than one meter measures the electricity supplied to Tenant, the total
electricity rendered through all meters shall be computed and billed in the
aggregate, in accordance with the provisions hereinabove set forth. Bills for
the Electricity Additional Rent shall be rendered to Tenant at such time as
Landlord may elect (but not more than monthly), and Tenant shall pay the amount
shown thereon to Landlord within ten (10) days after receipt of such bill.

 

Section 13.3           If Landlord shall be required by any Requirement or by the
public utility company furnishing electricity to the Building to discontinue
furnishing electricity to Tenant, this Lease shall continue in full force and
effect and shall be unaffected thereby, except only that from and after the
effective date of such discontinuance, Landlord shall not be obligated to
furnish electricity to Tenant and Tenant shall not be obligated to pay the
Electricity Additional Rent. Landlord shall not elect to discontinue furnishing
electricity to Tenant unless Landlord shall also elect to discontinue
furnishing electricity to all other office tenants in the Building. If Landlord
so discontinues furnishing electricity to Tenant, Tenant shall diligently
obtain electric energy directly from the public utility furnishing electric
service to the Building.

 

52

 

The costs of such service shall be paid by Tenant directly to such
public utility. Such electricity may be furnished to Tenant by means of the
existing electrical facilities serving the Premises, at no charge, to the
extent the same are available, suitable and safe for such purposes as
reasonably determined by Landlord. All meters and all additional panel boards,
feeders, risers, wiring and other conductors and equipment which may be
required to obtain electricity shall be installed by Landlord. The costs of
such installation shall be borne equally by Landlord and Tenant. Landlord, to
the extent permitted by applicable Requirements, shall not discontinue
furnishing electricity to the Premises until such installations have been made
and Tenant shall be able to obtain electricity directly from the public
utility.

 

ARTICLE 14

ACCESS
TO PREMISES

 

Section 14.1           (A)  Tenant shall
permit Landlord, Landlord’s agents and public utilities servicing the Building
to erect, use and maintain, ducts, pipes and conduits in and through the
Premises provided the same are reasonably concealed behind walls, below floors
or above ceilings. Landlord or Landlord’s agents, subject to Landlord’s
compliance with Tenant’s reasonable security requirements, shall have the right
to enter the Premises at all reasonable times upon such reasonable prior notice
(but in no event less than 24 hours except in case of emergency) as may be
practicable under the circumstances, which notice may be oral, to examine the
same, to show them to prospective purchasers, Mortgagees or Lessors, and to
make such repairs, alterations, improvements or additions (i) as Landlord may
deem reasonably necessary to the Premises or to any other portion of the
Building, or (ii) which (subject to the provisions of Section 4.4
hereof) Landlord may elect to perform following ten (10) days after notice
following Tenant’s failure to make or commence making and thereafter diligently
prosecute to completion repairs or perform any work which Tenant is obligated
to make or perform under this Lease, or (iii) for the purpose of complying with
all Requirements, and Landlord shall be allowed to take all material into and
upon the Premises that may reasonably be required therefor (provided same shall
be neatly stored in an area reasonably designated by Tenant and shall not
interfere with the conduct of Tenant’s business) without the same constituting
a breach by Landlord of any provisions of this Lease, a breach of Tenant’s
quiet enjoyment, an eviction or constructive eviction of Tenant in whole or in
part, or a release of Tenant’s obligations to pay Fixed Rent, Escalation Rent,
or any item of Rental, and except as expressly provided in Section 14.3
hereof, the Fixed Rent, Escalation Rent (and any other item of Rental) shall in
no way abate while said repairs, alterations, improvements or additions are
being made, by reason of loss or interruption of business of Tenant, or
otherwise. The foregoing notwithstanding, at the time Landlord shall request
entry to the Premises, Tenant may request that Landlord or Landlord’s
employees, agents, contractors or designees enter the Premises at a reasonable
time other than the time proposed by Landlord, and Landlord shall make a
reasonable effort to accommodate such request.

 

(B)           Any
work performed or installations made pursuant to this Article 14 shall
be made with reasonable diligence and otherwise pursuant to Section 4.4
hereof. Subject to the release and waiver of subrogation in favor of Landlord,
Landlord shall promptly repair any damage to the Premises, the Alterations and
Tenant’s Property caused by such work or installations.

 

53

 

(C)           Any
pipes, ducts, or conduits installed in or through the Premises pursuant to this
Article 14 shall either be concealed behind, beneath or within
partitioning, columns, ceilings or floors located or to be located in the
Premises, or completely furred at points immediately adjacent to partitioning
columns or ceilings located or to be located in the Premises, provided that the
installation of such pipes, ducts, or conduits, when completed, shall not
reduce the usable area of the Premises beyond a de minimis amount.

 

Section 14.2           Upon reasonable prior notice to Tenant (and in no event less
than 24 hours prior notice), Landlord may exhibit the Premises to prospective
tenants thereof during reasonable hours and subject to Landlord’s compliance
with Tenant’s reasonable security requirements during the eighteen (18) month
period prior to the Expiration Date. If Tenant or its representatives shall not
be present during the reasonable time agreed to by Tenant for such entry
(except in the case of an emergency) when for any reason entry into the
Premises shall be necessary or permissible under the terms of this Lease,
Landlord or Landlord’s agents may enter the same without rendering Landlord or
such agents liable therefor (during such entry Landlord or Landlord’s agents
shall accord reasonable care under the circumstances to Tenant’s Property)
subject to the other provisions of this Lease regarding Landlord’s acts or
omissions in or about the Premises, and without in any manner affecting this
Lease. Nothing herein contained, however, shall be deemed or construed to
impose upon Landlord any obligation, responsibility or liability whatsoever,
for the care, supervision or repair of the Building or any part thereof, except
as may arise from the negligence or willful misconduct of Landlord, its agents
or employees and otherwise as herein provided.

 

Section 14.3           If due to any work, repairs or installation performed by
Landlord hereunder or failure by Landlord to provide services to the Premises
in accordance with the provisions of this Lease, (including, without
limitation, any failure or defect in the supply or character of electric
service furnished to the Premises, whether electricity is provided by public or
private utility or by any electricity generation system owned and operated by
Landlord) or failure by Landlord to perform any of its other obligations under
this Lease, whether or not caused by any Unavoidable Delay, (i) Tenant shall be
unable for at least five (5) consecutive Business Days or ten (10) Business
Days in any period of twenty-five (25) consecutive Business Days (after Tenant
shall have notified Landlord of its inability) to operate its business in the
Premises in substantially the same manner as such business was operated prior
to the performance of such work or installation or such failure, the Fixed Rent
and the Escalation Rent shall be reduced on a per diem basis in the proportion
in which the area of the portion of the Premises which is unusable bears to the
total area of the Premises for each day subsequent to the aforesaid five (5)
consecutive Business Day period or ten (10) Business Day period that such
portion of the Premises became unusable (and Tenant actually did not use such
portion for the conduct of business) until the earlier of (x) the first
Business Day after the date the work or installation are completed or the day
the services are provided, as the case may be, by Landlord and (y) the date
Tenant shall reoccupy the affected portion of the Premises for the conduct of
business.

 

54

 

ARTICLE 15

CERTIFICATE
OF OCCUPANCY

 

Tenant
shall not at any time use or occupy the Premises in violation of the
certificate of occupancy at such time issued for the Premises or for the
Building and in the event that any department of the City or State of New York
shall hereafter contend or declare by notice, violation, order or in any other
manner whatsoever that the Premises are used for a purpose which is a violation
of such certificate of occupancy, Tenant shall, upon five (5) Business Days’
written notice from Landlord or any Governmental Authority, immediately
discontinue such use of the Premises. A certificate of occupancy with respect
to the Premises will be in force upon the Commencement Date; provided, however,
neither such certificate, nor any provision of this Lease, nor any act or
omission of Landlord, shall be deemed to constitute a representation or
warranty that the Premises, or any part thereof, lawfully may be used or
occupied for any particular purpose or in any particular manner in
contradiction to mere “office” use. A copy of the certificate of occupancy
affecting the Premises as of the date hereof is attached hereto as Exhibit “C”
(the “Certificate of Occupancy”). Landlord shall not amend or modify the
Certificate of Occupancy in any manner that materially impacts Tenant’s use of
the Premises (unless so required by any applicable Requirement), and the
Certificate of Occupancy shall at all times during the Term permit the use of
the Premises as “offices.”

 

ARTICLE 16

DEFAULT

 

Section 16.1           Each of the following events shall be an “Event of
Default” hereunder:

 

(A)          if
Tenant shall default in the payment when due of any installment of Fixed Rent
for ten (10) days after notice, or in the payment when due of any other item of
Rental and such default shall continue for ten (10) days after notice of such
default is given to Tenant, except that if Landlord shall have given four (4)
such notices in any twelve (12) month period, Tenant shall not be entitled to any
further notice of its delinquency in the payment of Rental until such time as
twelve (12) consecutive months shall have elapsed without Tenant having
defaulted in any such payment; or

 

(B)           if
Tenant shall default in the observance or performance of any term, covenant or
condition on Tenant’s part to be observed or performed under any other lease,
if any, with Landlord or Landlord’s predecessor in interest of space in the
Building and Tenant shall fail to remedy such default within thirty (30) days
after notice by Landlord or Landlord’s predecessor in interest to Tenant of
such default; provided, however, if such default is of such a
nature that it can be remedied but cannot be completely remedied within said
period of thirty (30) days, Tenant shall not be in default hereunder if (x) it
commences to remedy such default within said period of thirty (30) days and
thereafter diligently prosecutes to completion all steps necessary to remedy
such default, and (y) the continuance of such default would not subject Landlord,
Landlord’s predecessor in interest, the lessor under a Superior Lease, or a
Mortgagee to criminal liability; or

 

55

 

(C)           if
the Premises shall become abandoned; or

 

(D)          if
Tenant’s interest in this Lease shall devolve upon or pass to any person,
whether by operation of law or otherwise, except as expressly permitted under Article 12
hereof; or

 

(E)           (1)  if Tenant shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they
become due; or

 

(2)           if
Tenant shall commence or institute any case, proceeding or other action (A)
seeking relief on its behalf as debtor, or to adjudicate it a bankrupt or
insolvent, or seeking reorganization, arrangement, adjustment, winding-up,
liquidation, dissolution, composition or other relief with respect to it or its
debts under any existing or future law of any jurisdiction, domestic or
foreign, relating to bankruptcy, insolvency, reorganization or relief of
debtors., or (B) seeking appointment of a receiver, trustee, custodian or other
similar official for it or for all or any substantial part of its property; or

 

(3)           if
Tenant shall make a general assignment for the benefit of creditors; or

 

(4)           if
any case, proceeding or other action shall be commenced or instituted against
Tenant (A) seeking to have an order for relief entered against it as debtor or
to adjudicate it a bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment, winding-up, liquidation, dissolution, composition or
other relief with respect to it or its debts under any existing or future law
of any jurisdiction, domestic or foreign, relating to bankruptcy, insolvency,
reorganization or relief of debtors, or (B) seeking appointment of a receiver,
trustee, custodian or other similar official for it or for all or any
substantial part of its property, which in either of such cases (i) results in
any such entry of an order for relief, adjudication of bankruptcy or insolvency
or such an appointment or the issuance or entry of any other order having a
similar effect or (ii) remains undismissed for a period of one hundred twenty
(120) days; or

 

(5)           if
any case, proceeding or other action shall be commenced or instituted against
Tenant seeking issuance of a warrant of attachment, execution, distraint or
similar process against all or any substantial part of its property which
results in the entry of an order for any such relief which shall not have been
vacated, discharged, or stayed or bonded pending appeal within one hundred
twenty (120) days from the entry thereof; or

 

(6)           if
Tenant shall take any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the acts set forth in clauses (2), (3), (4) or (5),
or above; or

 

(7)           if
a trustee, receiver or other custodian is appointed for any substantial part of
the assets of Tenant which appointment is not vacated or effectively stayed
within sixty (60) Business Days; or

 

(F)           if
Tenant shall default in the observance or performance of any other term,
covenant or condition of this Lease on Tenant’s part to be observed or
performed and Tenant shall fail to remedy such default within thirty (30) days
after notice by Landlord to

 

56

 

Tenant of such default; provided, however, if such
default is of such a nature that it can be remedied but cannot be completely
remedied within said period of thirty (30) days, Tenant shall not be in default
hereunder if (x) it commences to remedy such default within said period of
thirty (30) days and thereafter diligently prosecutes to completion all steps
necessary to remedy such default, and (y) the continuance of such default would
not subject Landlord, the Lessor under a Superior Lease, or a Mortgagee to
criminal liability; or

 

(G)           if
this Lease is assigned (or all or a portion of the Premises are subleased) to a
Related Entity and such Related Entity, as the case may be, shall no longer (i)
control, (ii) be under common control with, or (iii) be under the control of
the originally named Tenant (or any permitted successor by merger,
consolidation or purchase as provided herein), and in the case of an assignment
this Lease shall not be reassigned to the entity that was Tenant immediately
prior to such assignment or in the case of a subletting, the sublease shall not
have been terminated within thirty 30 days after such Related Entity ceases to
be a Related Entity; provided, however, Tenant shall not be in
default hereunder if (x) within such thirty (30) day period Tenant commences an
action or takes such other steps reasonably satisfactory to Landlord to
terminate (i) such assignment and effectuate an assignment to such other
entity, or (ii) such sublease, as the case may be, and thereafter diligently prosecutes
to completion all steps necessary to affect such assignment or termination, as
the case may be.

 

Section 16.2           (A)  If an Event of
Default (i) described in Section 16.1 (E) hereof shall occur, or (ii)
described in Sections 16.1(A), (B), (C), (D), (F)
or (G) shall occur and Landlord, at any time thereafter prior to the
curing of the Event of Default, at its option gives written notice to Tenant
stating that this Lease and the Term shall expire and terminate on the date
Landlord shall give Tenant such notice, which date shall be at least five (5)
Business Days after the date of sending of the notice to Tenant then this Lease
and the Term and all rights of Tenant under this Lease shall expire and
terminate as if the date on which the Event of Default described in clause
(i) above occurred or the date such notice is given to Tenant by Landlord
were the Fixed Expiration Date and Tenant immediately shall quit and surrender
the Premises, but Tenant shall nonetheless be liable for all of its obligations
hereunder, as provided in Articles 17 and 18 hereof. Anything
contained herein to the contrary notwithstanding, if such termination shall be
stayed by order of any court having jurisdiction over any proceeding described
in Section 16.1(E) hereof, or by federal or state statute, then,
following the expiration of any such stay, or if the trustee appointed in any
such proceeding, Tenant or Tenant as debtor-in-possession shall fail to assume
Tenant’s obligations under this Lease within the period prescribed therefor by
law or within one hundred twenty (120) days after entry of the order for relief
or as may be allowed by the court, or if said trustee, Tenant or Tenant as
debtor-in-possession shall fail to provide adequate protection of Landlord’s
right, title and interest in and to the Premises or adequate assurance of the
complete and continuous future performance of Tenant’s obligations under this
Lease as provided in Section 12.3(B), Landlord, to the extent permitted
by law or by leave of the court having jurisdiction over such proceeding, shall
have the right, at its election, to terminate this Lease on five (5) days’
notice to Tenant, Tenant as debtor-in-possession or said trustee and upon the
expiration of said five (5) day period this Lease shall cease and expire as
aforesaid and Tenant, Tenant as debtor-in-possession or said trustee shall
immediately quit and surrender the Premises as aforesaid.

 

57

 

(B)           If
an Event of Default described in Section 16.1 (A) hereof shall occur, or
this Lease shall be terminated as provided in Section 16.2(A) hereof,
Landlord, without notice, may reenter and repossess the Premises without being
liable to indictment, prosecution or damages therefor and may dispossess Tenant
by summary proceedings or other suitable action or proceeding at law or equity.

 

Section 16.3           If, at any time (i) Tenant’s obligations under this Lease
shall have been guaranteed by any person other than Tenant, or (ii) Tenant’s
interest in this Lease shall have been assigned, the word “Tenant”, as used in Section
16.1(E), shall be deemed to mean any one or more of the persons primarily
or secondarily liable for Tenant’s obligations under this Lease. Any monies
received by Landlord from or on behalf of Tenant during the pendency of any
proceeding of the types referred to in Section 16.1(E) shall be deemed
paid as compensation for the use and occupation of the Premises and the
acceptance of any such compensation by Landlord shall not be deemed an
acceptance of Rental or a waiver on the part of Landlord of any rights under Section
16.2.

 

ARTICLE 17

REMEDIES
AND DAMAGES

 

Section 17.1           (A)  If this Lease and
the Term shall expire and come to an end as provided in Article 16
hereof:

 

(1)           Tenant
shall quit and peacefully surrender the Premises to Landlord, and Landlord and
its agents may immediately, or at any time after such default or after the date
upon which this Lease and the Term shall expire and come to an end, re-enter
the Premises or any part thereof without notice, either by summary proceedings,
or by any other applicable action or proceeding, or other suitable action or
proceeding at law or equity (without being liable to indictment, prosecution or
damages therefor), and may repossess the Premises and dispossess Tenant and any
other persons from the Premises and remove any and all of their property and
effects from the Premises; and

 

(2)           Landlord,
at Landlord’s option, may relet the whole or any part or parts of the Premises
from time to time, either in the name of Landlord or otherwise, to such tenant
or tenants, for such term or terms ending before, on or after the Expiration
Date, at such rental or rentals and upon such other conditions, which may
include concessions and free rent periods, as Landlord, in its sole discretion,
may determine; provided, however, that Landlord shall have no
obligation to relet the Premises or any part thereof and shall in no event be
liable for refusal or failure to relet the Premises or any part thereof, and no
such refusal or failure shall operate to relieve Tenant of any liability under
this Lease or otherwise affect any such liability, and Landlord, at Landlord’s
option, may make such repairs, replacements, alterations, additions,
improvements, decorations and other physical changes in and to the Premises as
Landlord, in its reasonable discretion, considers advisable or necessary in
connection with any such reletting or proposed reletting, without relieving
Tenant of any liability under this Lease or otherwise affecting any such
liability.

 

58

 

(B)           Tenant
hereby waives the service of any notice of intention to re-enter or to
institute legal proceedings to that end which may otherwise be required to be
given under any present or future law. Tenant, on its own behalf and on behalf
of all persons claiming through or under Tenant, including all creditors, does
hereby waive any and all rights which Tenant and all such persons might
otherwise have under any present or future law to redeem the Premises, or to re-enter
or repossess the Premises, or to restore the operation of this Lease, after
(a) Tenant shall have been dispossessed by a judgment or by warrant of any
court or judge, or (b) any re-entry by Landlord, or (c) any expiration or
termination of this Lease and the Term, whether such dispossess, re-entry,
expiration or termination shall be by operation of law or pursuant to the
provisions of this Lease. The words “re-enter,” “re-entry” and “re-entered” as
used in this Lease shall not be deemed to be restricted to their technical
legal meanings. In the event of a breach or threatened breach by Tenant, or any
persons claiming through or under Tenant, of any term, covenant or condition of
this Lease, Landlord shall have the right to enjoin such breach and the right
to invoke any other remedy allowed by law or in equity as if re-entry, summary
proceedings and other special remedies were not provided in this Lease for such
breach. The right to invoke the remedies hereinbefore set forth are cumulative
and shall not preclude Landlord from invoking any other remedy allowed at law
or in equity.

 

Section 17.2           (A)  If this Lease and
the Term shall expire and come to an end as provided in Article 16
hereof, or by or under any summary proceeding or any other action or
proceeding, or if Landlord shall re-enter the Premises as provided in Section
17.1, or by or under any summary proceeding or any other action or
proceeding, then, in any of said events:

 

(1)           Tenant
shall pay to Landlord all Fixed Rent, Escalation Rent and other items of Rental
payable under this Lease by Tenant to Landlord to the date upon which this
Lease and the Term shall have expired and come to an end or to the date of re-entry
upon the Premises by Landlord, as the case may be;

 

(2)           Tenant
also shall be liable for and shall pay to Landlord, as damages, any deficiency
(referred to as “Deficiency”) between the Rental for the period which
otherwise would have constituted the unexpired portion of the Term and the net
amount, if any, of rents collected under any reletting effected pursuant to the
provisions of clause (2) of Section 17.1 for any part of such
period (first deducting from the rents collected under any such reletting all
of Landlord’s reasonable expenses in connection with the termination of this
Lease, Landlord’s re-entry upon the Premises and with such reletting including,
but not limited to, all repossession costs, brokerage commissions, legal
expenses, reasonable attorneys’ fees and disbursements, alteration costs,
contribution to work and other expenses of preparing the Premises for such
reletting); any such Deficiency shall be paid in monthly installments by Tenant
on the days specified in this Lease for payment of installments of Fixed Rent,
Landlord shall be entitled to recover from Tenant each monthly Deficiency as
the same shall arise, and no suit to collect the amount of the Deficiency for
any month shall prejudice Landlord’s right to collect the Deficiency for any
subsequent month by a similar proceeding; and

 

(3)           whether
or not Landlord shall have collected any monthly Deficiency as aforesaid,
Landlord shall be entitled to recover from Tenant, and Tenant shall pay to
Landlord, on demand, in lieu of any further Deficiency as and for liquidated
and agreed final damages, a sum equal to the amount by which the Rental for the
period which otherwise would

 

59

 

have constituted the unexpired portion of the Term exceeds the then
fair and reasonable rental value of the Premises for the same period, both
discounted to present worth at the Base Rate less the aggregate amount of
Deficiencies theretofore collected by Landlord pursuant to the provisions of clause
(A)(2) of this Section 17.2 for the same period; if, before
presentation of proof of such liquidated damages to any court, commission or
tribunal, the Premises, or any part thereof, shall have been relet by Landlord
for the period which otherwise would have constituted the unexpired portion of
the Term, or any part thereof, the amount of rent reserved upon such reletting
shall be deemed, prima  facie, to be the fair and reasonable
rental value for the part or the whole of the Premises so relet during the term
of the reletting.

 

(B)           If
the Premises, or any part thereof, shall be relet together with other space in
the Building, the rents collected or reserved under any such reletting and the
expenses of any such reletting shall be equitably apportioned for the purposes
of this Section 17.2. Tenant shall in no event be entitled to any rents
collected or payable under any reletting, whether or not such rents shall
exceed the Fixed Rent reserved in this Lease. Solely for the purposes of this Article
17, the term “Escalation Rent” as used in Section 17.2(A) shall mean
the Escalation Rent in effect immediately prior to the Expiration Date, or the
date of re-entry upon the Premises by Landlord, as the case may be, adjusted to
reflect any increase pursuant to the provisions of Article 27 hereof for
the Operating Year immediately preceding such event. Nothing contained in Article
16 hereof or this Article 17 shall be deemed to limit or preclude
the recovery by Landlord from Tenant of the maximum amount allowed to be
obtained as damages by any statute or rule of law, or of any sums or damages to
which Landlord may be entitled in addition to the damages set forth in this Section
17.2.

 

ARTICLE 18

FEES
AND EXPENSES

 

Section 18.1           If Tenant shall default under this Lease, Landlord may,
without thereby waiving such default and without liability to Tenant in connection
therewith, deliver notice to Tenant of such default. If such default shall
adversely affect the premises occupied by another tenant within the Building or
the Building Systems or adversely affect the Operation of the Property and
Tenant shall fail to commence the cure of the default referenced in such notice
within seven (7) days, Landlord may give a notice to Tenant referring to
Landlord’s original notice and indicating in said notice that if Tenant fails
to commence the cure of such default within five (5) days after said second
request, Landlord may, but shall not be obligated to, perform the same for the
account and at the expense of Tenant. If Tenant shall fail to commence to cure
such default within said five (5) day period, or fail thereafter to diligently
proceed to complete such cure or if Tenant shall fail to comply with its
obligations under this Lease and the preservation of property or the safety of
any tenant, occupant or other person is threatened, Landlord may (1) perform
the same for the account of Tenant, or (2) make any reasonable expenditure or
incur any obligation for the payment of money, including, but not limited to,
reasonable attorneys’ fees and disbursements in instituting, prosecuting or
defending any action or proceeding, and the cost thereof, with interest thereon
at the Applicable Rate from the date Tenant is presented with a bill or
statement, shall be deemed to be additional rent hereunder and shall be paid by
Tenant to Landlord within ten (10) days of rendition of any bill or statement
to Tenant therefor.

 

60

 

Section 18.2           If Tenant shall fail to pay any installment of Fixed Rent,
Escalation Rent or any other item of Rental within three (3) days after notice
from Landlord that same is due, Tenant shall pay to Landlord, in addition to
such installment of Fixed Rent, Escalation Rent or other item of Rental, as the
case may be, as a late charge and as additional rent, a sum equal to interest
at the Applicable Rate on the amount unpaid, computed from the date three (3)
days after the date of notice that such payment was due to and including the
date of payment.

 

ARTICLE 19

NO
REPRESENTATIONS BY LANDLORD

 

Landlord and Landlord’s agents have made no
representations or promises with respect to the Building, the Real Property or
the Premises except as herein expressly set forth, and no rights, easements or
licenses are acquired by Tenant by implication or otherwise except as expressly
set forth herein. Tenant shall accept possession of the Premises in the
condition which shall exist on the Rent Commencement Date, “as is”, subject to
Landlord’s compliance with the applicable terms and conditions of this Lease
with respect to the delivery of possession of the Premises, and Landlord shall
have no obligation to perform any work or make any installations in order to
prepare the Premises for Tenant’s occupancy except to perform Landlord’s Work.

 

ARTICLE 20

END
OF TERM

 

Upon
the expiration or other termination of this Lease, Tenant shall quit and
surrender to Landlord the Premises, 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 Article
20 with respect to the originally stated Expiration Date. Tenant
acknowledges that possession of the Premises must be surrendered to Landlord on
the Expiration Date. The parties recognize and agree that the damage to
Landlord resulting from any failure by Tenant to timely surrender possession of
the Premises as aforesaid will be extremely substantial, will exceed the amount
of the monthly installments of the Fixed Rent and Escalation Rent theretofore
payable hereunder, and will be impossible to measure accurately. Tenant
therefore agrees that if possession of the Premises is not surrendered to Landlord
on or before the Expiration 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 Premises as provided herein,
Tenant shall pay to Landlord on account of use and occupancy of the Premises
for each month and for each portion of any month during which Tenant holds over
in the Premises after the Expiration 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 during the last month of the Term for each
month of such holdover during the period

 

61

 

commencing on the Expiration Date and ending sixty (60) days after the
Expiration Date (the “First Holdover Period”) and (b) two (2) times the
aggregate of that portion of the Fixed Rent, Escalation Rent and other items of
Rental which were payable under this Lease during the last month of the Term
for each month of such holdover during the period commencing on the day next
succeeding the end of the First Holdover Period and ending on the day on which
Tenant shall surrender the Premises in accordance with the terms and conditions
of this Lease. Nothing herein contained shall be deemed to permit Tenant to
retain possession of the Premises without written consent after the Expiration
Date or to limit in any manner Landlord’s right to regain possession of the
Premises through summary proceedings, or otherwise, and no acceptance by
Landlord of payments from Tenant after the Expiration 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 Article 20. The provisions of this Article 20
shall survive the Expiration Date.

 

ARTICLE 21

QUIET
ENJOYMENT

 

Provided
that this Lease is in full force and effect, Tenant may peaceably and quietly
enjoy the Premises subject, nevertheless, to the terms and conditions of this
Lease including, but not limited to, Section 37.2 hereof and Article
7 hereof, including, without limitation, all Superior Leases and Mortgages.

 

ARTICLE 22

FAILURE
TO GIVE POSSESSION

 

Section 22.1           Except as provided below, Tenant waives any right to rescind
this Lease under Section 223-a of the New York Real Property law or any
successor statute of similar nature and purpose then in force and further
waives the right to recover any damages which may result from Landlord’s
failure for any reason to deliver possession of the Premises on the dates set
forth in Section 22.2 hereof for the commencement of the Term. No such
failure to give possession on such dates shall in any way affect the validity
of this Lease or extend the term or affect the Fixed Expiration Date or the
obligations of Tenant hereunder or give rise to any claim for damages by Tenant
or claim for rescission of this Lease, nor shall the same be construed in any
way to extend the Term except as provided in this Article 22.

 

Section 22.2           [Intentionally Omitted].

 

Section 22.3           Time shall be of the essence with respect to Tenant’s right
to terminate this Lease with respect to any portion of the Premises. If Tenant
shall not terminate this Lease with respect to any portion of the Premises in a
timely fashion as aforesaid, this Lease shall continue in full force and effect
in accordance with its terms with respect to the entire Premises.

 

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ARTICLE 23

NO
WAIVER

 

Section 23.1           No act or thing done by Landlord or Landlord’s agents during
the Term shall be deemed an acceptance of a surrender of the Premises, and no
agreement to accept such surrender shall be valid unless in writing signed by
Landlord. No employee of Landlord or of Landlord’s agents shall have any power
to accept the keys of the Premises prior to the termination of this Lease. The
delivery of keys to any employee of Landlord or of Landlord’s agents shall not
operate as a termination of this Lease or a surrender of the Premises. In the
event Tenant at any time desires to have Landlord sublet the Premises for
Tenant’s account, Landlord or Landlord’s agents are authorized to receive said
keys for such purpose without releasing Tenant from any of the obligations
under this Lease, and Tenant hereby relieves Landlord of any liability for loss
of or damage to any of Tenant’s effects in connection with such subletting
unless such liability shall arise (i) out of Landlord’s gross negligence or
willful misconduct or (ii) in connection with a Recapture Sublease.

 

Section 23.2           The failure of Landlord or Tenant to seek redress for
violation of, or to insist upon the strict performance of, any covenant or
condition of this Lease, or any of the Rules and Regulations set forth or
hereafter adopted by Landlord, shall not prevent a subsequent act, which would
have originally constituted a violation, from having all of the force and
effect of an original violation. The receipt by Landlord or payment by Tenant
of Fixed Rent, Escalation Rent or any other item of Rental with knowledge of
the breach of any covenant of this Lease shall not be deemed a waiver of such
breach. The failure of Landlord to enforce any of the Rules and Regulations or
Alterations Rules and Regulations set forth, or hereafter adopted, against
Tenant or any other tenant in the Building shall not be deemed a waiver of any
such Rules and Regulations or Alterations Rule and Regulation, as the case may
be. No provision of this Lease shall be deemed to have been waived by Landlord
or Tenant, unless such waiver be in writing signed by Landlord or Tenant, as
the case may be. No payment by Tenant or receipt by Landlord of a lesser amount
than the monthly Fixed Rent or other item of Rental herein stipulated shall be
deemed to be other than on account of the earliest stipulated Fixed Rent or
other item of Rental, or as Landlord may elect to apply same, nor shall any
endorsement or statement on any check or any letter accompanying any check or
payment as Fixed Rent or other item of Rental be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance of such Fixed Rent or other item of
Rental or pursue any other remedy in this Lease provided. This Lease contains
the entire agreement between the parties and all prior negotiations and
agreements are merged herein. Any executory agreement hereafter made shall be
ineffective to change, modify, discharge or effect an abandonment of this Lease
in whole or in part unless such executory agreement is in writing and signed by
the party against whom enforcement of the change, modification, discharge or
abandonment is sought.

 

ARTICLE 24

WAIVER
OF TRIAL BY JURY

 

The
respective parties hereto shall and they hereby do waive trial by jury in any
action, proceeding or counterclaim brought by either of the parties hereto
against the other

 

63

 

(except for personal injury or property damage) on any matters whatsoever
arising out of or in any way connected with this Lease, the relationship of
Landlord and Tenant, Tenant’s use or occupancy of the Premises, or for the
enforcement of any remedy under any statute, emergency or otherwise. If
Landlord commences any summary proceeding against Tenant, Tenant will not
interpose any counterclaim of whatever nature or description in any such
proceeding (unless failure to impose such counterclaim would preclude Tenant
from asserting in a separate action the claim which is the subject of such
counterclaim), and will not seek to consolidate such proceeding with any other
action which may have been or will be brought in any other court by Tenant.

 

ARTICLE 25

INABILITY
TO PERFORM

 

Except
as provided herein, this Lease and the obligation of Tenant to pay Rental
hereunder and perform all of the other covenants and agreements hereunder on
the part of Tenant to be performed shall in no wise be affected, impaired or
excused because Landlord is unable to fulfill any of its obligations under this
Lease expressly or impliedly to be performed by Landlord or because Landlord is
unable to make, or is delayed in making any repairs, additions, alterations,
improvements or decorations or is unable to supply or is delayed in supplying
any equipment or fixtures, if Landlord is prevented or delayed from so doing by
reason of strikes or labor troubles, or by any cause whatsoever reasonably
beyond Landlord’s control (other than Landlord’s financial condition),
including but not limited to, laws, governmental preemption in connection with
a national emergency or by reason of any Requirements of any Governmental
Authority or by reason of the conditions of supply and demand which have been
or are affected by war or other emergency (“Unavoidable Delays”). Landlord
shall promptly notify Tenant of any Unavoidable Delay which prevents Landlord
from fulfilling any of its obligations under this Lease.

 

ARTICLE 26

BILLS
AND NOTICES

 

Except
as otherwise expressly provided in this Lease, any bills, statements, consents,
notices, demands, requests or other communications given or required to be
given under this Lease shall be in writing and shall be deemed sufficiently
given or rendered if delivered by hand (against a signed receipt) or if sent by
registered or certified mail (return receipt requested) addressed as follows:

 

if to Tenant (a)
at Tenant’s address set forth in this Lease, if mailed prior to Tenant’s taking
possession of the Premises, or (b) at the Building, if mailed subsequent to
Tenant’s taking possession of the Premises, or (c) at any place where Tenant or
any agent or employee of Tenant be found if mailed subsequent to Tenant’s
vacating, deserting, abandoning or surrendering the Premises, in each case with
a copy to Fried, Frank, Harris, Shriver & Jacobson, One New York Plaza, New
York, New York 10004, Attn: Andrew J. Dady, Esq., and

 

64

 

if to Landlord at
Landlord’s address set forth in this Lease, Attn: Office of the Chief
Investment Officer, Senior Vice President, and with copies to (x) Shearman
& Sterling, 599 Lexington Avenue, New York, New York 10022, Attn.: Chris M.
Smith, Esq. and (y) any Mortgagee or Lessor which shall have requested same, by
notice given in accordance with the provisions of this Article 26 at the
address designated by such Mortgagee or Lessor, or

 

to such other address(es) as either Landlord or Tenant
may designate as its new address(es) for such purpose by notice given to the
other in accordance with the provisions of this Article 26. Any such
bill, statement, consent, notice, demand, request or other communication shall
be deemed to have been rendered or given on the date when it shall have been
hand delivered or three (3) Business Days from when it shall have been mailed
as provided in this Article 26. Any notice duly delivered in accordance
with the terms of this Article 26 by the respective attorneys of
Landlord and Tenant shall be deemed a valid notice for purposes of this Article 26.

 

ARTICLE 27

ESCALATION

 

Section 27.1           For the purposes of this Article 27, the following terms
shall have the meanings set forth below.

 

(A)          “Assessed
Valuation” shall mean the amount for which the Real Property is assessed
pursuant to applicable provisions of the New York City Charter and of the
Administrative Code of the City of New York for the purpose of imposition of
Taxes.

 

(B)           “Base
Operating Expenses” shall mean the Operating Expenses for the Base
Operating Year.

 

(C)           “Base
Operating Year” shall mean the calendar year ending December 31, 2002.

 

(D)          “Base
Taxes” shall mean the Taxes for the Tax Year commencing July 1, 2001 and
ending June 30, 2002.

 

(E)           (1)  “Operating Expenses” shall mean the
aggregate of those costs and expenses determined on an accrual basis
consistently applied (and consistent with the accrual basis applied in the Base
Operating Year) without duplication (and taxes, if any, thereon, including,
without limitation, sales and value-added taxes) actually paid or incurred by
or on behalf of Landlord (whether directly or through independent contractors)
in respect of the Operation of the Property which are properly chargeable to
the Operation of the Property together with and including (without limitation)
the costs of gas, oil, steam, water, sewer rental, electricity (for the portions
of the Real Property not leased to and occupied by tenants or available for
occupancy), HVAC and other utilities furnished to the Building and utility
taxes, and the expenses incurred in connection with the Operation of the
Property such as insurance premiums as required by any Mortgagee, or, if there
is no Mortgagee, consistent with the insurance maintained by other first class
buildings in midtown Manhattan, attorneys’ fees and disbursements (exclusive of
any such fees and disbursements incurred in applying for any

 

65

 

reduction of Taxes) and auditing and other professional fees and
expenses, but specifically excluding:

 

(a)           Taxes,

 

(b)           franchise, income, inheritance or transfer taxes imposed
upon Landlord,

 

(c)           debt service payments and any other charges payable in
connection with any Mortgages,

 

(d)           all leasing costs, including, without limitation, leasing
and brokerage commissions and similar fees (including appraisals), and
accounting and appraisal fees relating to determinations of fair market rent,

 

(e)           capital improvements (except as otherwise provided herein)
and the cost, if any, of removing, remediating, abating or otherwise treating
asbestos or any other hazardous material or waste from the Building,

 

(f)            the cost of electrical energy
and condenser water provided during overtime periods consumed in any space
within the Building leased or available for lease to tenant(s) and any survey
costs or submetering or submeter reading costs incurred in connection
therewith,

 

(g)           the cost of tenant installations and improvements to any
tenant’s premises, tenant allowances or tenant inducements incurred in
connection with preparing space for a tenant,

 

(h)           salaries, including, without limitation, wages, fringe
benefits and all other compensation, of personnel above the grade of building
manager and such building manager’s supervisor,

 

(i)            rent and any other amounts paid
under Superior Leases other than amounts in the nature of Operating Expenses,

 

(j)            any expense for which Landlord
is otherwise compensated through the proceeds of insurance (or would have been
so compensated but for Landlord’s failure to maintain the insurance required
hereunder), including but not limited to reimbursement by any tenant (including
Tenant), or any expense of the Building for services in excess of the services
Landlord is obligated to furnish to Tenant hereunder,

 

(k)           legal fees, accounting fees, disbursements and other costs
incurred in connection with any negotiation of, or disputes arising out of, any
space lease or proposed space lease in the Building,

 

(l)            depreciation or amortization,
except as provided herein,

 

66

 

(m)          Landlord’s advertising, entertainment and promotional costs
for the Building,

 

(n)           the portion of any fee or expenditure paid to any Affiliate
of Landlord which exceeds the amount which would be paid for comparable
services and/or goods in the absence of such relationship,

 

(o)           auditing fees and other expenses incurred in connection with
tenant (including Tenant) disputes,

 

(p)           payments made to tenants to take over leases,

 

(q)           to the extent any costs that are otherwise includable in
Operating Expenses are incurred with respect to the Building and other buildings
owned or managed by Landlord, the amounts that are properly allocable to such
other buildings shall be excluded from Operating Expenses,

 

(r)            expense of inspection,
abatement, remediation or removal of hazardous substances in the Real Property
or any part thereof,

 

(s)           costs incurred in connection with the financing or
refinancing of the Real Property, or a sale or transfer of all or any portion
of the Real Property (including the acquisition or sale of air rights,
transferable development rights, easements or other real property interests) or
any interest therein or in any Person of whatever tier owing an interest
therein;

 

(t)            costs and expenses incurred in
connection with the enforcement of leases, including court costs, accounting
fees, auditing fees, attorneys fees and disbursements in connection with any
summary proceeding to disposes any tenant;

 

(u)           costs and expenses incurred in connection with procuring
tenants, including lease concessions, lease takeover or rental assumption
obligations, architectural costs, engineering, fees and other similar
professional costs and legal fees in connection with lease negotiations;

 

(v)           damages and attorneys’ fees and disbursements and any other
costs in connection with any proceeding, judgment, settlement or arbitration
award resulting from any liability of Landlord and fines or penalties due to
Landlord’s negligence or wrongful acts;

 

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

 

(x)            fines or penalties resulting
from the violation by Landlord of any Requirements;

 

(y)           the cost of installing, operating and maintaining any
specialty facility such as an observatory, broadcasting facilities, luncheon
club, athletic or

 

67

 

recreational club, child care or similar facility, auditorium,
cafeteria or dining facility or conference center, or making any additions to,
or building additional stories on, the Building or its plazas, or adding
buildings or other structures adjoining the Building, or connecting the
Building to other structures adjoining the Building;

 

(z)            the cost of acquiring, leasing,
installing, maintaining displaying, protecting, insuring, restoring or renewing
works of art or temporary exhibitions located at or within the Building;

 

(aa)         costs relating to withdrawal liability or unfunded pension
liability under the Multi-Employer Pension Plan Act or other Requirement;

 

(bb)         [intentionally omitted];

 

(cc)         all costs, including, without limitation, the cost of repair
made by Landlord to remedy damage caused by or resulting from the gross
negligence, willful misconduct, or improper acts of Landlord, its agents,
servants or employees, contractors, or suppliers;

 

(dd)         the cost of any repair, replacement or restoration or other
work occasioned by fire or other casualty insured under a standard “all risk”
policy of insurance (regardless of whether Landlord has in fact maintained such
insurance) other than amount of any self retention or deductible under such
policy or the exercise by government authorities of the right of eminent domain
(whether taking is total or partial) or condemnation, to the extent Landlord is
compensated therefor or would have been compensated therefore had Landlord
obtained the insurance which Landlord is required to obtain pursuant to this
Lease;

 

(ee)         legal expenses, accounting and other professional service
costs not allocable to the Operation of the Property;

 

(ff)           costs of utilities directly metered to tenants of the
Building and payable separately by such tenants;

 

(gg)         costs of overtime HVAC service provided to any other tenant
of the Building;

 

(hh)         any bad debt loss, rent loss or reserves for bad debt or
rent loss;

 

(ii)           any Operating Expenses incurred exclusively to service retail
space of the Building;

 

(jj)           all costs incurred by Landlord with respect to goods and
services (including utilities sold and supplied to tenants and occupants of the
Building), to the extent that Landlord shall be entitled to reimbursement from
any tenant in the Building, including Tenant, for the cost of like goods and
services furnished to Tenant pursuant to this Lease other than in the nature of
Operating Expenses;

 

68

 

(kk)         increases in Operating Expenses attributable to changes in
the percentage used for determining management fees in excess of two and
one-half percent (2.5%) of the annual gross rentals of the Building;

 

(ll)           all rentals of capital equipment to the extent same would
not be an Operating Expense if such equipment were purchased;

 

(mm)       all costs associated with Landlord’s political, civic or
charitable contributions;

 

(nn)         Landlord’s general corporate overhead and general and
administrative expenses;

 

(oo)         the capital cost of any physical additions to the Building
after the date hereof;

 

(pp)         any expenses for repairs or maintenance which are covered by
warranties and service contracts and such expenses are reimbursed to Landlord
pursuant thereto; and

 

(qq)         Operating Expenses attributable solely to storage space in
the Building.

 

except, however, that if Landlord is not furnishing
any particular work or service (the cost of which if performed by Landlord
would constitute an Operating Expense) to a tenant who has undertaken to
perform such work or service in lieu of the performance thereof by Landlord,
Operating Expenses shall be deemed to be increased by an amount equal to the
additional Operating Expenses which reasonably would have been incurred during
such period by Landlord if it had furnished such work or services to such
tenant. Any costs incurred in performing work or furnishing services for any
tenant (including Tenant), whether at such tenant’s or Landlord’s expense, to
the extent that such work or service is in excess of any work or service that
Landlord is obligated to furnish to Tenant at Landlord’s expense shall be
deducted from Operating Expenses otherwise chargeable to the Operation of the
Property. Any insurance proceeds received with respect to any item previously
included as an Operating Expense shall be deducted from Operating Expenses for
the Operating Year in which such proceeds are received; provided, however,
to the extent any insurance proceeds are received by Landlord in any Operating
Year with respect to any item which was included in Operating Expenses during
the Base Operating Year, the amount of insurance proceeds so received shall be
deducted from Base Operating Expenses and (x) the Base Operating Expenses shall
be retroactively adjusted to reflect such deduction and (y) all retroactive
Operating Payments resulting from such retroactive adjustment shall be due and
payable within twenty (20) days of being billed therefor by Landlord.

 

(2)           In
determining the amount of Operating Expenses for any Operating Year, including,
without limitation, the Base Operating Year, if less than 95% of the Building
rentable area shall have been occupied by tenant(s) at any time during any such
Operating Year, Operating Expenses shall be determined for such Operating Year
to be an amount equal to the like expenses which would normally be expected to
be incurred had at least 95% of such areas been occupied throughout such
Operating Year.

 

69

 

(3)           (i)  If any capital improvement is made during any
Operating Year in order to comply (a) with a Requirement enacted subsequent to
the date of this Lease or (b) with a Requirement in effect as of the date of
this Lease which requires ongoing improvements from time to time (provided that
the Building shall have been in compliance with the existing Requirement as of
the date of this Lease), then the cost of such improvement shall be included in
Operating Expenses for the Operating Year in which such improvement was made; provided,
however, to the extent the cost of such improvement is required to be
capitalized for federal income tax purposes, such cost shall be amortized over
the useful economic life of such improvement as determined in accordance with
accrual basis accounting principles consistently applied, and the annual
amortization, together with interest thereon at the then Base Rate, of such
improvement shall be deemed an Operating Expense in each of the Operating Years
during which such cost of the improvement is amortized.

 

(ii)           If any
capital improvement is made during any Operating Year either for the purpose of
saving or reducing Operating Expenses (as, for example, a labor-saving
improvement), then the cost of such improvement shall be included in Operating
Expenses for the Operating Year in which such improvement was made, unless such
cost shall exceed such savings or reduction in Operating Expenses for such
Operating Year, in which case only an amount equal to the savings or reduction
shall be included; provided, however, in either event, such cost
shall be amortized over such period of time as Landlord reasonably estimates
such savings or reduction in Operating Expenses (to the extent of such savings)
will equal the cost of such improvement and the annual amortization, together
with interest thereon at the then Base Rate, of such improvement shall be
deemed an Operating Expense in each of the Operating Years during which such
cost of the improvement is amortized.

 

(F)           “Operating
Statement” shall mean an itemized statement in reasonable detail setting
forth a comparison of the Operating Expenses for an Operating Year with the
Base Operating Expenses and the Escalation Rent for the preceding Operating
Year pursuant to the provisions of this Article 27.

 

(G)           “Operating
Year” shall mean the calendar year within which the Commencement Date
occurs and each subsequent calendar year for any part or all of which
Escalation Rent shall be payable pursuant to this Article 27.

 

(H)          “Taxes”
shall mean the aggregate amount of real estate taxes and any general or special
assessments (exclusive of penalties and interest thereon) imposed upon the Real
Property (including, without limitation, (i) assessments made upon or with
respect to any “air” and “development” rights now appurtenant to or affecting
the Real Property, (ii) any fee, tax or charge imposed by any Governmental
Authority for any vaults, vault space or other space within or outside the
boundaries of the Real Property, and (iii) any taxes or assessments levied
after the date of this Lease in whole or in part for public benefits to the
Real Property or the Building, including any Business Improvement District
taxes and assessments) without taking into account any discount that Landlord
may receive by virtue of any early payment of Taxes or on account of any
exemption or abatements of Taxes to which the Real Property is entitled; provided,
that if because of any change in the taxation of real estate, any other tax or
assessment, however denominated (including, without limitation, any franchise,
income, profit, sales, use, occupancy, gross receipts or rental tax) is imposed
upon Landlord or the owner of the Real

 

70

 

Property or the Building, or the occupancy, rents or income therefrom,
in substitution for any of the foregoing Taxes, such other tax or assessment
shall be deemed part of Taxes computed as if Landlord’s sole asset were the
Real Property. With respect to any Tax Year, all reasonable out-of-pocket
expenses, including attorneys’ fees and disbursements, experts and other
witnesses’ fees, incurred in contesting the validity or amount of any Taxes or
in obtaining a refund of Taxes shall be considered as part of the Taxes for
such Tax Year in each case with respect to the Tax Year commencing on July 1,
2001 and each Tax Year thereafter. Anything contained herein to the contrary
notwithstanding, Taxes shall not be deemed to include (i) any taxes on Landlord’s
income, (ii) franchise, gains, recording, capital stock, excise, gift,
mortgage, recording, foreign ownership or control, payroll or stamp taxes,
(iii) estate or inheritance taxes, income taxes, transfer taxes, occupancy or
rent taxes (except to the extent same are in substitution of Taxes), foreign
ownership or control taxes, late charges and penalties, and any charges or
taxes paid directly to the applicable Governmental Authority by individual
tenants (by way of example only, vault taxes for a tenant using such vaults and
water and sewer taxes, for a restaurant tenant) or (iv) any similar taxes
imposed on Landlord, unless such taxes are levied, assessed or imposed in lieu
of or as a substitute for the whole or any part of the taxes, assessments,
levies, impositions which now constitute Taxes, or (v) any penalties or late
charges imposed against Landlord or any superior party with respect to Taxes,
unless such penalties or late charges arise solely out of Tenant’s failure to
timely deliver any Tax Payment. In determining the amount of Taxes for any Tax
Year (or for the partial calendar years in which the Term shall commence or
expire), Taxes payable in such Tax Year shall be apportioned for the portions
of the Tax Years occurring within such partial years.

 

(I)            “Tax
Statement” shall mean a statement setting forth a comparison of Taxes for a
Tax Year with the Base Taxes and the Tax Payment due for such Tax Year pursuant
to the provisions of this Article 27, which Tax Statement shall be
accompanied by a copy of the relevant tax bill for the applicable Tax Year.

 

(J)            “Tax
Year” shall mean the period July 1 through June 30 (or such other period as
hereinafter may be duly adopted by The City of New York as its fiscal year for
real estate tax purposes), any portion of which occurs during the Term.

 

Section 27.2           (A)  If the Taxes payable
for any Tax Year (any part or all of which falls within the Term) shall
represent an increase above the Base Taxes, then Tenant shall pay as additional
rent for such Tax Year and continuing thereafter until a new Tax Statement is
rendered to Tenant, Tenant’s Share of such increase (the “Tax Payment”).
Tenant shall not be entitled to any credit against any Tax Payment on account
of any discount that Landlord may receive by virtue of any early payment of
Taxes or on account of any exemptions or abatements of Taxes to which the Real
Property is entitled, to the extent attributable, in whole or in part, to any
other real property owned by Landlord or any affiliate or any property with
respect to which Landlord or such affiliate is the lessee under any ground or
underlying lease, and Taxes shall be calculated without taking into account any
such discounts, exemptions or abatements. The Taxes shall be computed initially
on the basis of the Assessed Valuation in effect at the time the Tax Statement
is rendered (as the Taxes may have been settled or finally adjudicated prior to
such time), regardless of any then pending application, proceeding or appeal
respecting the reduction of any such Assessed Valuation, but shall be subject
to subsequent adjustment as provided in Section 27.3(A) hereof.

 

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(B)           Subject
to the provisions of this Section 27.2(B), at any time during or after
the Term, Landlord may render to Tenant a Tax Statement or Statements showing
(i) a comparison of the Taxes for a Tax Year with the Base Taxes and (ii) the
amount of the Tax Payment resulting from such comparison. Tenant shall pay
Landlord in two (2) equal installments, in advance, on June 10th and
December 10th of each year, the Tax Payment shown thereon. If Taxes are
required to be paid in full or on any other date or dates than as presently
required by the Governmental Authority imposing the same, then the due date of
the installments of the Tax Payment shall be correspondingly accelerated or
revised so that the Tax Payment (or the two (2) installments thereof) is due at
least twenty (20) days prior to the date the corresponding payment is due to
the Governmental Authority but in no event more than thirty (30) days prior to
the date upon which such Taxes are due to the Governmental Authority. If such
Tax Payment shall be accelerated or revised, Landlord shall give Tenant at
least thirty (30) days prior notice (or such shorter time as is practicable
under the circumstances) of such acceleration or revision. If the Tax Year
established by The City of New York shall be changed, any Taxes for the Tax
Year prior to such change which are included within the new Tax Year and which
were the subject of a prior Tax Statement shall be apportioned for the purpose
of calculating the Tax Payment payable with respect to such new Tax Year. Landlord’s
failure to render a Tax Statement during or with respect to any Tax Year shall
not eliminate or reduce Tenant’s obligation to make Tax Payments pursuant to
this Article 27 for such Tax Year, and shall not prejudice Landlord’s
right to render a Tax Statement during or with respect to any subsequent Tax
Year. Notwithstanding the foregoing, if Landlord shall not deliver a Tax
Statement within twenty-four (24) months of the expiration of the Tax Year in
question, Landlord shall be deemed to have waived its right to collect such
further increase in Taxes with respect to the Tax Year in question. Upon
written request, but not more often than once a year, Landlord shall furnish
Tenant with a reproduced copy of the tax bill (or receipted bill) for the Taxes
for the current or next succeeding Tax Year (if theretofore issued by the
Governmental Authority).

 

(C)           The
Tax Payment shall be pro rated for any partial Tax Year in which the Term of
this Lease shall expire. If a Tax Statement is furnished to Tenant after the
commencement of the Tax Year in respect of which such Tax Statement is
rendered, Tenant shall within twenty (20) Business Days thereafter, pay to
Landlord an amount equal to the amount of any underpayment of the Tax Payment
with respect to such Tax Year and, in the event of an overpayment, Landlord
shall either pay to Tenant or, at Landlord’s election, credit against
subsequent payments of Fixed Rent, the amount of Tenant’s overpayment, except
if the Term shall have expired, provided no Event of Default shall exist as of
the date the Term shall expire, Landlord shall promptly thereafter pay to
Tenant the amount of such overpayment.

 

Section 27.3           (A)  Only Landlord shall
be eligible to institute tax reduction or other proceedings to reduce the
Assessed Valuation. In the event that, after a Tax Statement has been sent to
Tenant, an Assessed Valuation which had been utilized in computing the Taxes
for a Tax Year other than the Base Tax Year is reduced (as a result of
settlement, final determination of legal proceedings or otherwise), and as a
result thereof a refund of Taxes is actually received by or on behalf of
Landlord, then, promptly after receipt of such refund, Landlord shall send
Tenant a Tax Statement adjusting the Taxes for such Tax Year (taking into
account the expenses mentioned in Section 27.1(H)) and setting forth
Tenant’s Share of such refund and Tenant shall receive such Share by way of a
credit against the Fixed Rent next becoming due after the sending

 

72

 

of such Tax Statement or, if no further Fixed Rent shall be due (or to
the extent such amount exceeds the remaining Fixed Rent that shall next
becoming due), enclosing payment of the amount of Tenant’s Share of such refund
to Tenant, provided, however, that Tenant’s Share of such refund
shall be limited to the portion of the Tax Payment, if any, which Tenant had
theretofore paid to Landlord attributable to increases in Taxes for the Tax
Year to which the refund is applicable on the basis of the Assessed Valuation
before it had been reduced.

 

(B)           In
the event that, after a Tax Statement has been sent to Tenant, the Assessed
Valuation which had been utilized in computing the Base Taxes is reduced (as a
result of settlement, final determination of legal proceedings or otherwise)
then the Base Taxes shall be retroactively adjusted to reflect such reduction,
and all Tax Payments shall be calculated with giving effect to such reduction
in the Assessed Valuation with respect to such Base Taxes.

 

Section 27.4           (A)  If the Operating
Expenses for any Operating Year (any part or all of which falls within the
Term, but after the Base Operating Year) shall be greater than the Base
Operating Expenses, then Tenant shall pay as additional rent for such Operating
Year and continuing thereafter until a new Operating Statement is rendered to
Tenant, Tenant’s Share of such increase (the “Operating Payment”) as
hereinafter provided.

 

(B)           Subject
to the provisions of this Section 27.4(B), at any time during or after
the Term, Landlord may render to Tenant an Operating Statement or Statements
showing (i) a comparison of the Operating Expenses for the Operating Year in
question with the Base Operating Expenses, and (ii) the amount of the Operating
Payment resulting from such comparison. Landlord’s failure to render an
Operating Statement during or with respect to any Operating Year in question
shall not prejudice Landlord’s right to render an Operating Statement during or
with respect to any subsequent Operating Year, and shall not eliminate or
reduce Tenant’s obligation to make payments of the Operating Payment pursuant
to this Article 27 for such Operating Year. Notwithstanding the foregoing,
if Landlord shall not deliver an Operating Statement within twenty-four (24)
months of the expiration of the Operating Year in question, Landlord shall be
deemed to have waived its right to collect such further increase in Operating
Expenses with respect to the Operating Year in question; provided, however,
that if any information necessary for Landlord to render any such Operating
Statement shall be obtained from or furnished by a third party and was not
reasonably known to Landlord within such twenty-four (24) month period after
the end of the Operating Year in question or such twenty-four (24) month period
after the Term, Landlord may render an Operating Statement or a revised
Operating Statement within thirty (30) days of its receipt of such information.

 

(C)           On
the first day of the second month following the furnishing to Tenant of an
Operating Statement, Tenant shall pay to Landlord a sum equal to 1 /12th of the
Operating Payment shown thereon to be due for the preceding Operating Year
multiplied by the number of months (and any fraction thereof) of the Term then
elapsed since the commencement of such Operating Year in which such Operating
Statement is delivered, less Operating Payments and any Tentative Monthly
Escalation Charge theretofore made by Tenant for such Operating Year and
thereafter, commencing with the then current monthly installment of Fixed Rent
and continuing monthly thereafter until rendition of the next succeeding
Operating Statement, Tenant shall pay on account of the Operating Payment for
such Year an amount equal to 1/12th of the

 

73

 

Operating Payment shown thereon to be due for the preceding Operating
Year. Any Operating Payment shall be collectible by Landlord in the same manner
as Fixed Rent.

 

(D)          (1)  As used in this Section 27.4, (i) “Tentative
Monthly Escalation Charge” shall mean a sum equal to 1/12th of the product
of (a) Tenant’s Share, and (b) the difference between (x) the Base Operating
Expenses and (y) Landlord’s reasonable good faith estimate of Operating
Expenses for the Current Year (provided, however, that such
estimate shall not exceed one hundred ten percent (110%) of the Operating
Expenses for the immediately preceding Operating Year, unless Landlord shall be
able to reasonably demonstrate that such higher percentage is reasonably
reflective of the anticipated Operating Expenses for the Current Year), and
(ii) “Current Year” shall mean the Operating Year in which a demand is
made upon Tenant for payment of a Tentative Monthly Escalation Charge.

 

(2)           At
any time in any Operating Year, Landlord, at its option, in lieu of the
payments required under Section 27.4(C) hereof, may demand and collect
from Tenant, as additional rent, a sum equal to the Tentative Monthly Escalation
Charge multiplied by the number of months in said Operating Year preceding the
demand and reduced by the sum of all payments theretofore made under Section
27.4(C) with respect to said Operating Year, and thereafter, commencing
with the month in which the demand is made and continuing thereafter for each
month remaining in said Operating Year, and such Tentative Monthly Escalation
Charges shall be due on the first day of each month thereafter.

 

(E)           (1)  After the end of the Current Year and at any
time that Landlord renders an Operating Statement or Statements to Tenant as
provided in Section 27.4(B) hereof with respect to the comparison of the
Operating Expenses for said Operating Year or Current Year, with the Base
Operating Expenses, as the case may be, the amounts, if any, collected by
Landlord from Tenant under Section 27.4(C) or (D) on account of
the Operating Payment or the Tentative Monthly Escalation Charge, as the case
may be, shall be adjusted, and, if the amount so collected is less than or
exceeds the amount actually due under said Operating Statement for the
Operating Year, a reconciliation shall be made as follows:  Tenant shall be debited with any Operating
Payment shown on such Operating Statement and credited, or, if no further Fixed
Rent shall be payable hereunder (or to the extent such amount exceeds the
remaining Fixed Rent that shall next be coming due), shall be paid to Tenant
with the amounts, if any, paid by Tenant on account in accordance with the
provisions of subsection (C) and subsection (D)(2) of this Section
27.4 for the Operating Year in question. Tenant shall pay any net debit
balance to Landlord within fifteen (15) days next following rendition by
Landlord of an invoice for such net debit balance; any net credit balance shall
be applied against the next accruing monthly installments of Fixed Rent, or, if
no further Fixed Rent shall be payable, shall be paid to Tenant.

 

(2)           If
the sum of the Tentative Monthly Escalation Charges and payments made by Tenant
in accordance with subsection (C) of this Section 27.4 for any
Operating Year shall have exceeded the Operating Payment for such Operating
Year by more than ten percent (10%), interest at the Applicable Rate on the
amount of the overpayment determined as of the respective dates of such
payments by Tenant and calculated from such respective dates to the dates on
which such amounts are credited against the monthly installments of Fixed Rent,
shall be so credited. Any amount owing to Tenant subsequent to the Term shall

 

74

 

be paid to Tenant within ten (10) Business Days after a final
determination has been made of the amount due to Tenant together with interest
accruing thereon at the Applicable Rate from and after the last day of the Term
until such amount shall be paid to Tenant.

 

Section 27.5           Any Operating Statement (other than the Operating Statement
with respect to the Base Operating Year) sent to Tenant shall be conclusively
binding upon Tenant unless, within one hundred eighty (180) days after such
Operating Statement is sent, Tenant shall send a written notice to Landlord
objecting to such Operating Statement and specifying the respects in which such
Operating Statement is disputed; provided however, that the foregoing notwithstanding,
the Operating Statement with respect to the Base Operating Year shall be
conclusively binding upon Tenant unless, within one hundred eighty (180) days
after the end of the Operating Year immediately following the Base Operating
Year, Tenant shall send a written notice to Landlord objecting to such
Operating Statement with respect to the Base Operating Year and specifying the
respects in which such Operating Statement is disputed. If any such notice
pursuant to the preceding sentence is sent, provided Tenant shall have paid to
Landlord when due the amount shown on any such Operating Statement, as provided
in Section 27.4 hereof, Tenant (together with its independent certified
public accounting firm reasonably satisfactory to Landlord) may examine Landlord’s
books and records relating to the Operation of the Property to determine the
accuracy of the Operating Statement and the Base Operating Expenses with
respect only to the item(s) of Operating Expenses then being objected to by
Tenant and not previously examined or objected to by Tenant. Tenant recognizes
the confidential nature of such books and records and agrees to maintain the
information obtained from such examination in strict confidence; provided,
however, Tenant may reveal such information on a need to know basis to
its consultants in connection with settlement talks, arbitration or litigation
in connection with such dispute; provided  further, however,
that such consultants agree to be bound by the confidentiality provisions set
forth in this Section 27.5. If after such examination, Tenant still
disputes such Operating Statement, Base Operating Expenses, or Base Taxes,
either party may refer the decision of the issues raised to a reputable
independent firm of certified public accountants, selected by Landlord and
approved by Tenant, which approval shall not be unreasonably withheld or
delayed as long as such certified public accounting firm is one of the
so-called “big-five” public accounting firms, and the decision of such
accountants shall be conclusively binding upon the parties. The fees and
expenses involved in such decision shall be borne by the unsuccessful party
(and if both parties are partially successful, such fees and expenses shall be
apportioned between Landlord and Tenant in inverse proportion to the amount by
which such decision is favorable to each party); provided, however,
that if it is finally determined that there were inaccuracies in the disputed
Operating Statement which in the aggregate after setting off any overstated items
against any understated items result in a net reduction equal to or greater
than ten percent (10%) of (i) the Operating Expenses reflected in such
Operating Statement, (ii) the Base Operating Expenses, or (iii) the Base Taxes,
then the reasonable, out-of-pocket fees and expenses of Tenant’s examination of
Landlord’s books and records in connection therewith shall be borne by
Landlord, plus interest on such overpayment at the Applicable Rate. Notwithstanding
the giving of such notice by Tenant, and pending the resolution of any such
dispute, Tenant shall pay to Landlord when due the amount shown on any such
Operating Statement, as provided in Section 27.4 hereof.

 

Section 27.6           The expiration or termination of this Lease during any
Operating Year or Tax Year shall not affect the rights or obligations of the
parties hereto respecting

 

75

 

payments of Escalation Rent for such Operating Year or Tax Year and any
Operating Statement or Tax Statement relating to such Escalation Rent, may be
sent to Tenant subsequent to, and all such rights and obligations shall
survive, any such expiration or termination; provided, however,
that nothing set forth in the preceding sentence shall extend or modify the
time limitations set forth in Sections 27.2(B) and 27.4(B) hereof.
In determining the amount of Escalation Rent for the Operating Year and Tax
Year in which the Term shall expire, the payment of Escalation Rent for such
Operating Year and Tax Year shall be prorated based on the number of days of
the Term which fall within such Operating Year and Tax Year. Any payments due
under such Operating Statement or Tax Statement shall be payable within twenty
(20) days after such Statement is sent to Tenant.

 

ARTICLE 28

SERVICES

 

Section 28.1           (A)  Landlord shall
provide passenger elevator service to the Premises twenty-four hours per day,
seven days per week, three hundred sixty-five days per year, subject to
interruption and cessation due to Unavoidable Delays, Requirements and insurance
requirements.

 

(B)           Commencing
on the Commencement Date, there shall be one (1) freight elevator serving the
Premises on call on a “first come, first served” basis (without affording any
other tenant of the Building more favorable availability than being afforded
Tenant) on Business Days from 8:00 a.m. to 5:00 p.m., and on a reservation, “first
come, first served” basis (without affording any other tenant of the Building
more favorable availability than being afforded Tenant) from 5:00 p.m. to 8:00
a.m. on Business Days and at any time on days other than Business Days. If
Tenant shall use the freight elevators (subject to availability) serving the
Premises between 5:00 p.m. and 8:00 a.m. on Business Days or at any time on any
other days, Tenant shall pay Landlord additional rent for such use at Landlord’s
standard rates; provided, however, that in connection with the
performance of the Initial Alterations and Tenant’s initial move into the
Premises, Tenant shall not be required to pay for the first twenty (20) hours
of Tenant’s use of such freight elevators between the hours of 5:00 p.m. and
8:00 a.m. on Business Days. Tenant acknowledges that such charge by Landlord
for the freight elevator service may be increased from time to time during the
Term hereof based on increases in Landlord’s cost to provide such service. The
foregoing notwithstanding, in connection with (x) the performance of any
Alterations, and (y) delivery to or from the Premises of large or bulky
deliveries, Tenant shall only be permitted to use the freight elevators
(subject to availability) serving the Premises between 5:00 p.m. and 8:00
a.m. on Business Days or at any time on Saturdays and Sundays on a
non-exclusive, non-discriminatory basis, and shall pay Landlord additional rent
for such use at Landlord’s standard rates. In addition to the foregoing, Tenant
shall have the right to the non-exclusive use of the Building loading dock on a
“first come, first served” basis (without affording any other tenant of the
Building more favorable availability than being afforded Tenant) on Business
Days from 8:00 a.m. to 5:00 p.m. and on a reservation “first come, first served”
basis (without affording any other tenant of the Building more favorable
availability than being afforded Tenant) from 5:00 p.m. to 8:00 a.m. on
Business Days and at any time on days other than Business Days.

 

76

 

Section 28.2           Landlord, at Landlord’s expense, but subject to recoupment
pursuant to Article 27 hereof, commencing on the Commencement Date,
shall furnish to the points of entry to the Premises through the HVAC System,
heating and air conditioning to the Premises from 8:00 a.m. to 6:00 p.m. on
Business Days when required for comfortable occupancy in accordance with the specification
attached hereto as Exhibit “B” of the Premises. Tenant acknowledges and
agrees that to the extent Tenant shall install or use heat generating machines
or equipment or construct partitioning or other Alterations in the Premises
which adversely affects the air circulation in the Premises, Landlord may not
be able to meet the specifications set forth on Exhibit “B” and
accordingly Landlord shall have no liability to Tenant if as a result of the
foregoing it shall be unable to meet said specifications. Landlord, throughout
the Term, upon reasonable notice (which may be oral), shall have free access to
any and all mechanical installations of Landlord, including but not limited to,
air-cooling, fan, ventilating and machine rooms and electrical closets; Tenant
shall not construct partitions or other obstructions which may materially
interfere with Landlord’s free access thereto, or interfere with the moving of
Landlord’s equipment to and from the enclosures containing said installations. Neither
Tenant, nor its agents, employees or contractors shall at any time enter the
said enclosures or tamper with, adjust or touch or otherwise in any manner
affect said mechanical installations.

 

Section 28.3           The Fixed Rent does not reflect or include any charge to
Tenant for the furnishing of any necessary freight elevator facilities or
distributing HVAC to the Premises during periods (“Overtime Periods”)
other than the hours and days set forth above. Accordingly, if Landlord shall
furnish any such freight elevator facilities (except as provided in Section
28.1 (B) hereof) or HVAC to the Premises at the request of Tenant during
Overtime Periods, Tenant shall pay Landlord additional rent for such freight
elevator service, including the services of the operator thereof, as set forth
in Section 28.1 (B) hereof and Tenant shall pay Landlord additional rent
for such HVAC service at the standard rate per hour, subject to increase as
provided herein. Such rates may be proportionately increased commencing January
1, 2002 and thereafter on each subsequent January 1st of each calendar year by
the percentage increase in the Consumer Price Index in effect on such date
during the previous year to that in effect on such date during such calendar
year. Landlord shall not be required to furnish any such services during any
Overtime Periods unless Landlord has received advance notice from Tenant
requesting such services prior to 2:00 p.m. of the day upon which such services
are requested or by 2:00 p.m. of the last preceding Business Day if such
Overtime Periods are to occur on a day other than a Business Day. If Tenant
fails to give Landlord such advance notice, then, failure by Landlord to
furnish or distribute any such services during such Overtime Periods shall not
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of Rental, or relieve Tenant from any of
its obligations under this Lease, or impose any liability upon Landlord or its
agents by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant’s business or otherwise. If more than one tenant
utilizing the same services as Tenant requests the same Overtime Periods for
the same services as Tenant, the charge to Tenant shall be adjusted pro rata
based on the period of time each tenant, including Tenant, utilizes such
system.

 

Section 28.4           Provided Tenant shall keep the Premises in order, Landlord,
at Landlord’s expense, subject to recoupment pursuant to Article 27
hereof, commencing on the Business Date, shall cause the Premises, excluding
any portions of the Premises used for any

 

77

 

private or non-core lavatories or the storage, preparation, service or
consumption of food or beverages, to be cleaned, substantially in accordance
with the standards set forth in Schedule B annexed hereto and made a
part hereof. If, however, any additional cleaning of the Premises is to be done
by Tenant, it shall be done at Tenant’s sole expense, in a manner reasonably
satisfactory to Landlord and no one other than persons approved by Landlord
shall be permitted to enter the Premises or the Building for such purpose. Tenant
shall pay to Landlord the cost of removal of any of Tenant’s refuse and rubbish
from the Premises and the Building to the extent that the same exceeds the
refuse and rubbish usually attendant upon the use of such Premises as offices. Bills
for the same shall be rendered by Landlord to Tenant at such time as Landlord
may elect and shall be due and payable within fifteen (15) days of receipt of
same by Tenant as additional rent. Tenant, at Tenant’s expense, shall cause all
portions of the Premises used for the storage, preparation, service or
consumption of food or beverages to be cleaned daily in a manner satisfactory
to Landlord, and to be exterminated against infestation by vermin, rodents or
roaches regularly and, in addition, whenever there shall be evidence of any
infestation. Tenant shall not permit any person to enter the Premises or the
Building for the purpose of providing such extermination services, other than
persons first approved by Landlord, such approval not to be unreasonably
withheld or delayed.

 

Section 28.5           If the “sprinkler system” installed in the Building or any
of its appurtenances shall be damaged or injured or not in proper working order
by reason of any act or omission of Tenant, Tenant’s agents, servants,
employees, licensees or visitors, Tenant shall forthwith restore the same to
good working condition at its own expense; and if the New York Board of Fire
Underwriters or the Insurance Services Office or any bureau, department or
official of the state or city government shall require that any changes,
modifications, alterations or additional sprinkler heads or other equipment be
made or supplied by reason of Tenant’s particular business, or the Alterations
made by Tenant, or the location of the partitions, trade fixtures, or other
contents of the Premises placed by or on behalf of Tenant, Landlord shall, at
Tenant’s reasonable expense, promptly make and supply such changes,
modifications, alterations, additional sprinkler heads or other equipment. Landlord
covenants that the Building sprinkler riser servicing the Premises shall
provide adequate pressure and water to the point of entry to the Premises in
accordance with applicable Requirements.

 

Section 28.6           Landlord shall provide to the lavatories in the core area of
the Premises hot and cold water for ordinary drinking, cleaning and lavatory
purposes and to the pantries and other lavatories in the Premises cold water
for such purposes. If Tenant requires, uses or consumes water for any purpose
in addition to ordinary drinking, cleaning, or lavatory purposes, Landlord may
install a water meter and thereby measure Tenant’s water consumption for all
such additional purposes. In such event (1) Tenant shall pay Landlord for the
cost of the meter and Landlord’s actual, reasonable out-of-pocket cost of the
installation thereof and through the duration of Tenant’s occupancy Tenant
shall keep said meter and equipment in good working order and repair at Tenant’s
own cost and expense; (2) Tenant shall pay for water consumed as shown on said
meter above the cost of ordinary water usage, as and when bills are rendered as
additional rent, and on the occurrence of an Event of Default in connection
with making such payment Landlord may pay such charges and collect the same
from Tenant; and (3) Tenant shall pay the sewer rent, charge or any other tax,
rent, levy or charge which now or hereafter is assessed, imposed or shall
become a lien upon the Premises or the realty of which they are a part pursuant
to any Requirement made or issued in connection with any such metered use,

 

78

 

consumption, maintenance or supply of water, water system, or sewage or
sewage connection or system; provided, however, that in no event
shall any item included in the definition of “Taxes” in Section 27.1 be
included within the items which Tenant shall be required to pay pursuant to
this clause (3). The bill rendered by Landlord for the above shall be based
upon Tenant’s consumption and shall be payable by Tenant as additional rent
within ten (10) Business Days of rendition.

 

Section 28.7           Landlord reserves the right to stop service of the HVAC
System or the elevator, electrical, plumbing or other Building Systems or
facilities in the Building when necessary, by reason of accident or emergency,
or for repairs, additions, alterations, replacements or improvements in the
reasonable judgment of Landlord desirable or necessary to be made, until said
repairs, alterations, replacements or improvements shall have been completed
(which repairs, alterations and improvements shall be performed in accordance
with Section 4.4 hereof). Except as otherwise provided in Section
14.3 hereof, Landlord shall have no responsibility or liability for
interruption, curtailment or failure to supply HVAC, elevator, electrical,
plumbing or other Building Systems or facilities when prevented by Unavoidable
Delays or by any Requirement of any Governmental Authority or due to the
exercise of its right to stop service as provided in this Section 28.7. The
exercise of such right or such failure by Landlord shall not constitute an
actual or constructive eviction, in whole or in part, or, except as provided in
Section 14.3 hereof, entitle Tenant to any compensation or to any
abatement or diminution of Rental, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Landlord or its agents
by reason of inconvenience or annoyance to Tenant, or injury to or interruption
of Tenant’s business, or otherwise. Landlord agrees to use reasonable efforts
to provide Tenant with such reasonable prior oral notice (except in the event
of an emergency) that may be practicable under the circumstances of any
anticipated stoppage of service, it being expressly understood and agreed,
however, that Landlord shall not incur any liability for its failure to so
notify Tenant unless Landlord shall willfully fail to notify Tenant of such
anticipated stoppage of service. All repairs, alterations or improvements
pursuant to this Section 28.7 or Section 28.8 below shall be
performed in accordance with Section 4.4 hereof, and Landlord shall make
reasonable efforts to ensure (i) that any such repairs, alterations or
improvements which are likely to cause a stoppage of service and to likely
cause a material interruption to the conduct of Tenant’s business are performed
after business hours and on an overtime basis, and (ii) that (except in the
event of an emergency) all regularly scheduled maintenance to the Building air-conditioning
systems serving the Premises shall be performed during the late fall or winter.

 

Section 28.8           Landlord and Tenant acknowledge that Landlord shall furnish
up to a maximum of thirty-seven and one-half (37.5) tons of chilled water to
the Premises from the existing chiller located in the machine room on the 10th
floor of the Building (the “Existing Chiller”) by means of the existing
chilled water pipes located in the Building. Tenant shall pay to Landlord an
annual charge for the supply of Landlord’s chilled water, within ten (10) days
after rendition of a bill therefor. Such annual charge shall be equal to
(i) Six Hundred Fifty and 00/100 ($650.00) plus (ii) Six Hundred
Fifty and 00/100 ($650.00) multiplied by the percentage increase, if any, in
the Consumer Price Index from that in effect on the date of this Lease to the
date of such bill, for each ton of cooling capacity of the supplemental air
conditioning system for which Landlord’s chilled water is supplied. In addition
to the foregoing, at any time during the Term Tenant shall have the right to
request, and Landlord shall thereafter furnish, up to a

 

79

 

maximum of twelve and one-half (12.5) additional tons of condenser
water to the Premises by means of the existing condenser water pipes located in
the Building on the terms and conditions set forth for the furnishing of
chiller water forth above. In connection with any such condenser water to be
furnished to the Premises as aforesaid, Tenant may tap-in to Landlord’s
condenser water pipes. Any such tap-in shall be made by Tenant at its sole cost
and expense and Tenant shall pay to Landlord as additional rent a one time “tap-in”
fee of One Thousand Five Hundred and 00/100 Dollars ($1,500.00) per tap. Tenant
acknowledges and agrees that Landlord shall not be liable to Tenant for any
failure or defect in the supply or character of the chilled and condenser water
supplied to Tenant by reason of any requirement, act or omission of the public
service company serving the Building or for any other reason.

 

ARTICLE 29

PARTNERSHIP
TENANT

 

If
Tenant is a partnership or a professional corporation (or is comprised of two
(2) or more Persons, individually or as co-partners of a partnership or
shareholders of a professional corporation) or if Tenant’s interest in this
Lease shall be assigned to a partnership or a professional corporation (or to
two (2) or more Persons, individually or as co-partners of a partnership or
shareholders of a professional corporation) pursuant to Article 12
hereof (any such partnership, professional corporation and such Persons are
referred to in this Article 29 as “Partnership Tenant”), the
following provisions shall apply to each such Partnership Tenant:  (a) parties comprising Partnership
Tenant shall be personally liable for the obligations of Tenant hereunder,
except that to the extent that a permitted assignee pursuant to Article 12
hereof shall be an accounting firm or a law firm the individual partners or
shareholders of such permitted assignee shall not be personally liable for the
obligations of Tenant hereunder; (b) each of the parties comprising Partnership
Tenant hereby consents in advance to, and agrees to be bound by (x) any written
instrument which may hereafter be executed by Partnership Tenant or any
successor partnership, changing, modifying, extending or discharging this
Lease, in whole or in part, or surrendering all or any part of the Premises to
Landlord (except for any instrument which contradicts subparagraph (a) above),
and (y) any notices, demands, requests or other communications which may
hereafter be given by Partnership Tenant or by any of the parties comprising
Partnership Tenant; and (c) any bills, statements, notices, demands, requests
or other communications given or rendered to Partnership Tenant or to any of
such parties shall be binding upon Partnership Tenant and all such parties.

 

ARTICLE 30

VAULT
SPACE

 

Notwithstanding
anything contained in this Lease or indicated on any sketch, blueprint or plan,
any vaults, vault space or other space outside the boundaries of the Real
Property are not included in the Premises. Landlord makes no representation as
to the location of the boundaries of the Real Property. All vaults and vault
space and all other space outside the boundaries of the Real Property which
Tenant may be permitted to use or occupy are to be used or occupied under a
revocable license, and if any such license shall be revoked, or if the amount
of such space shall be diminished or required by any Governmental Authority or
by any public

 

80

 

utility company, such revocation, diminution or requisition shall not
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of Rental, or relieve Tenant from any of
its obligations under this Lease, or impose any liability upon Landlord. Any
fee, tax or charge imposed by any Governmental Authority for any such vaults,
vault space or other space occupied by Tenant shall be paid by Tenant.

 

ARTICLE 31

SECURITY

 

Section
31.1           Tenant
shall deposit with Landlord on the signing of this Lease the sum of Three
Million Eight Hundred Sixty-Five Thousand and 00/100 Dollars ($3,865,000.00),
or at Tenant’s option, a “clean,” unconditional, irrevocable and transferable
sight draft letter of credit (the “Letter of Credit”) in the same
amount, issued by and drawn on a bank reasonably satisfactory to Landlord and
which is a member of the New York Clearing House for the account of Landlord,
for a term of not less than one (1) year, as security for the faithful
performance and observance by Tenant of the terms, conditions and provisions of
this Lease, including without limitation the surrender of possession of the
Premises to Landlord as herein provided. The Letter of Credit shall provide
(i) for the continuance of such credit for a period of at least one (1)
year from the date of delivery of such letter of credit, (ii) for the
automatic extension of such Letter of Credit for additional periods of one (1)
year from the initial and each future expiration date thereof (the last such
extension to provide for the continuance of such Letter of Credit for at least
three (3) months beyond the Expiration Date) unless such bank gives Landlord
notice (a “Letter of Credit Termination Notice”) of its intention not to
renew the Letter of Credit, such Letter of Credit Termination Notice to be given
in accordance with Article 26 of this Lease, not less than thirty (30)
days prior to the initial or any future expiration date of such Letter of
Credit and (iii) that in the event such Notice is given by such bank and
Tenant has not provided Landlord with a substitute Letter of Credit which
complies with the requirements of this Section 31.1 by the date which is
thirty (30) days prior to the expiration of such Letter of Credit, Landlord
shall have the right to present the Letter of Credit for payment on such bank
at sight, for the balance remaining in such Letter of Credit and apply or
retain the whole or any part of the proceeds thereof to the extent permitted
herein. If an Event of Default exists in respect of any of the terms,
provisions and conditions of this Lease, including, but not limited to, the
payment of Fixed Rent or any other item of Rental, Landlord may apply or retain
the whole or any part of the security so deposited, or present the Letter of
Credit for payment and apply or retain the whole or any part of the proceeds
thereof, as the case may be, to the extent required for the payment of any
Fixed Rent or any other item of Rental as to which Tenant is in default or for
any sum which Landlord may expend or be required to expend by reason of Tenant’s
default in respect of any of the terms, covenants and conditions of this Lease,
including, but not limited to, any damages or deficiency in the reletting of
the Premises, whether such damages or deficiency accrue or accrues before or
after summary proceedings or other re-entry by Landlord. If Landlord applies or
retains any part of the proceeds of the Letter of Credit or the security so
deposited, Tenant, upon demand, shall deposit with Landlord the amount so
applied or retained. If Tenant shall fully and faithfully comply with all of
the terms, provisions, covenants and conditions of this Lease, the Letter of
Credit and/or security, as the case may be, shall be returned to Tenant after
the Expiration Date and after delivery of possession of the entire Premises to
Landlord. In the event of a sale of the Real Property or the Building or
leasing of the Building, Landlord shall have the

 

81

 

right to transfer the Letter of Credit or security to the vendee or
lessee and Landlord shall thereupon be released by Tenant from all liability
for the return of such Letter of Credit or security, as the case may be, and
Tenant shall cause the bank which issued the Letter of Credit to issue an
amendment to the Letter of Credit or issue a new Letter of Credit naming the
vendee or lessee as the beneficiary thereunder. To the extent that the Letter
of Credit or security shall have been actually transferred or delivered by
Landlord to a new landlord, Tenant shall look solely to the new landlord for
the return of the Letter of Credit or security, as the case may be. The
provisions hereof shall apply to every transfer or assignment of the Letter of
Credit or security made to a new landlord. Tenant shall not assign or encumber
or attempt to assign or encumber the monies deposited herein as security and
neither Landlord nor its successors or assigns shall be bound by any such
assignment, encumbrance, attempted assignment or attempted encumbrance. If at
any time the security held hereunder shall consist of cash, and not a Letter of
Credit, Landlord shall hold the same in an interest bearing money-market
account and the interest thereon (less a one percent (1%) administrative fee
per annum and less the amount of such interest which has been applied in the
same manner that the remainder of the security has been applied) shall be paid
to Tenant to the extent and at the same time the remainder of the security
shall be returned to Tenant hereunder. If at any time the security held hereunder
shall consist of cash or a Letter of Credit, Tenant may deliver a Letter of
Credit in place of the cash or cash in place of the Letter of Credit and
Landlord shall accept such cash or Letter of Credit, as the case may be, as the
security hereunder, and promptly return to Tenant the cash or Letter of Credit
it was previously holding as security.

 

Section 31.2           Notwithstanding anything
contained herein to the contrary, if on (i) the fifth anniversary of the Rent
Commencement Date (the “First Reduction Date”), (ii) the sixth
anniversary of the Commencement Date (the “Second Reduction Date”),
(iii) the seventh anniversary of the Commencement Date (the “Third Reduction
Date”), (iv) the eighth anniversary of the Commencement Date (the “Fourth
Reduction Date”), (v) the ninth anniversary of the Commencement Date (the “Fifth
Reduction Date”), (vi) the tenth anniversary of the Commencement Date (the “Sixth
Reduction Date”), (vii) the eleventh anniversary of the Commencement Date
(the “Seventh Reduction Date”), (viii) the twelfth anniversary of the
Commencement Date (the “Eighth Reduction Date”), (ix) the thirteenth anniversary
of the Commencement Date (the “Ninth Reduction Date”), and (x) the
fourteenth anniversary of the Commencement Date (the “Tenth Reduction Date”) this
Lease shall be in full force and effect and no Event of Default by Tenant
hereunder has occurred and is continuing, Tenant shall have the right to reduce
the amount of the security deposit, whether cash or Letter of Credit, to (1)
Three Million Six Hundred Ninety-Seven Thousand Five Hundred and 00/100 Dollars
($3,697,500.00) on the First Reduction Date, (2) Three Million Five Hundred
Thirty Thousand and 00/100 Dollars ($3,530,000.00) on the Second Reduction Date
provided that the security deposit shall have been previously reduced to
the amount set forth in the foregoing clause (1), (3) Three Million Three
Hundred Sixty-Two Thousand Five Hundred and 00/100 Dollars ($3,362,500.00) on
the Third Reduction Date provided that the security deposit shall have
been previously reduced to the amount set forth in the foregoing clause (2),
(4) Three Million One Hundred Ninety-Five Thousand and 00/100 Dollars
($3,195,000.00) on the Fourth Reduction Date provided that the security
deposit shall have been previously reduced to the amount set forth in the
foregoing clause (3), (5) Three Million Twenty-Seven Thousand Five Hundred and
00/100 Dollars ($3,027,500.00) on the Fifth Reduction Date provided that
the security deposit shall have been previously reduced to the amount set forth
in the foregoing clause (4), (6) Two

 

82

 

Million Eight Hundred Sixty Thousand and 00/100 Dollars ($2,860,000.00)
on the Sixth Reduction Date provided that the security deposit shall
have been previously reduced to the amount set forth in the foregoing clause
(5), (7) Two Million Six Hundred Ninety-Two Thousand Five Hundred and 00/100
Dollars ($2,692,500.00) on the Seventh Reduction Date provided that the
security deposit shall have been previously reduced to the amount set forth in
the foregoing clause (6), (8) Two Million Five Hundred Twenty-Five Thousand and
00/100 Dollars ($2,525,000.00) on the Eighth Reduction Date provided
that the security deposit shall have been previously reduced to the amount set
forth in the foregoing clause (7), (9) Two Million Three Hundred Fifty-Seven
Thousand Five Hundred and 00/100 Dollars ($2,357,500.00) on the Ninth Reduction
Date provided that the security deposit shall have been previously
reduced to the amount set forth in the foregoing clause (8), (10) Two Million
One Hundred Ninety Thousand and 00/100 Dollars ($2,190,000.00) on the Tenth
Reduction Date provided that the security deposit shall have been
previously reduced to the amount set forth in the foregoing clause (9), and
such reduced amount shall be held by Landlord as security in accordance with
the terms hereof. If the security being held is cash and Tenant is entitled to
a reduction of the security so deposited as aforesaid, Landlord shall within
ten (10) days after Tenant’s written request return to Tenant an amount of the
security then being held by Landlord so the amount of the principal of the
security deposit being held by Landlord shall be reduced as aforesaid, and if
at the time of such reduction, the security being held by Landlord is a Letter
of Credit, Tenant shall either deliver to Landlord an amendment to the existing
Letter of Credit or a new Letter of Credit, which amendment or new Letter of
Credit shall comply with the terms and conditions of this Article 31 and
shall reduce the amount of the security as aforesaid.

 

ARTICLE 32

CAPTIONS

 

The
captions are inserted only as a matter of convenience and for reference and in
no way define, limit or describe the scope of this Lease nor the intent of any
provision thereof.

 

ARTICLE 33

PARTIES
BOUND

 

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

 

ARTICLE 34

BROKER

 

Each
party represents and warrants to the other that it has not dealt with any
broker or Person in connection with this Lease other than Insignia/ESG, Inc.
(the “Broker”). The execution and delivery of this Lease by each party
shall be conclusive evidence that such party has relied upon the foregoing
representation and warranty. Landlord shall pay Broker any commission, fee or
compensation due Broker in connection with this Lease and shall indemnify and
hold Tenant harmless from and against any and all claims for commission, fee or
other

 

83

 

compensation by any Person who shall claim to have dealt with Tenant in
connection with this Lease and for any and all costs incurred by Landlord in
connection with such claims, including, without limitation, reasonable
attorneys’ fees and disbursements. Tenant shall indemnify and hold Landlord
harmless from and against any and all claims for commission, fee or other
compensation by any Person (other than Broker) who shall claim to have dealt
with Tenant in connection with this Lease and for any and all costs incurred by
Landlord in connection with such claims, including, without limitation,
reasonable attorneys’ fees and disbursements. This provision shall survive the
expiration or earlier termination of this Lease.

 

ARTICLE 35

INDEMNITY

 

Section 35.1           (A)  Tenant shall not
knowingly do or permit any act or thing to be done upon the Premises which may
subject Landlord to any liability or responsibility for injury, damages to
persons or property or to any liability by reason of any violation of law or of
any Requirement, but shall exercise such control over the Premises as to fully
protect Landlord against any such liability. Tenant shall indemnify and save
the Indemnitees harmless from and against (a) all claims of whatever nature
against the Indemnitees arising from any negligence or willful misconduct of
Tenant, its contractors, licensees, agents, servants, or employees, or the
invitees or visitors of Tenant while such invitees or visitors are in the
Premises, (b) all claims against the Indemnitees arising from any accident,
injury or damage caused to any person or to the property of any person and
occurring during the Term in or about the Premises, and (c) all claims against
the Indemnitees arising from any accident, injury or damage occurring outside
of the Premises but anywhere within or about the Real Property, where such
accident, injury or damage results or is claimed to have resulted from the
negligence or willful misconduct of Tenant or Tenant’s agents or employees, or
the invitees or visitors of Tenant. This indemnity and hold harmless agreement
shall include indemnity from and against any and all liability, fines, suits,
demands, costs and reasonable expenses of any kind or nature (including,
without limitation, attorneys’ fees and disbursements) incurred in or in
connection with any such claim or proceeding brought thereon, and the defense
thereof but shall be limited to the extent any insurance proceeds collectible
by Landlord under policies owned by Landlord or such injured party with respect
to such damage or injury are insufficient to satisfy same. Tenant shall have no
liability for any consequential damages suffered either by Landlord or by any
party claiming through Landlord.

 

(B)           Except
as otherwise expressly provided herein, 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 direct
damage to the Premises and any bodily injury to Tenant’s employees, agents or
invitees resulting from the acts, omissions or negligence of Landlord or its
contractors, licensees, agents, servants, employees, invitees or visitors. 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, but shall be limited to the extent any insurance proceeds
collectible by Tenant or such injured party with respect to such damage

 

84

 

or injury are insufficient to satisfy same. Landlord shall have no
liability for any consequential damages suffered either by Tenant or by any
party claiming through Tenant.

 

Section 35.2           (A)  If any claim,
action or proceeding is made or brought against Landlord, with respect to which
claim, action or proceeding Tenant shall be obligated to indemnify Landlord
against, pursuant to the terms of this Lease, then, upon demand by Landlord,
Tenant at its sole cost and expense, shall resist or defend such claim, action
or proceeding in Landlord’s name, if necessary, by such attorneys as Landlord
shall approve, which approval shall not be unreasonably withheld. Attorneys for
Tenant’s insurer shall hereby be deemed approved for purposes of this Section
35.2. The provisions of this Section 35.2(A) shall survive the
expiration or earlier termination of this Lease.

 

(B)           If
any claim, action or proceeding is made or brought against Tenant, with respect
to which claim, action or proceeding Landlord shall be obligated to indemnify
Tenant against, pursuant to the terms of this Lease, then, upon demand by
Tenant, Landlord at its sole cost and expense, shall resist or defend such
claim, action or proceeding in Tenant’s name, if necessary, by such attorneys
as Tenant shall approve, which approval shall not be unreasonably withheld. Attorneys
for Landlord’s insurer shall hereby be deemed approved for purposes of this Section
35.2. The provisions of this Section 35.2(B) shall survive the
expiration or earlier termination of this Lease.

 

ARTICLE 36

ADJACENT
EXCAVATION-SHORING

 

If an
excavation shall be made upon land adjacent to the Premises, or shall be
authorized to be made, Tenant shall, upon reasonable advance notice, afford to
the person causing or authorized to cause such excavation, license to enter
upon the Premises for the purpose of doing such work as said person shall deem
necessary to preserve the wall or the Building from injury or damage and to
support the same by proper foundations without any claim for damages or
indemnity against Landlord, or diminution or abatement of Rental provided that
Tenant shall continue to have reasonable access to and reasonable use of the
Premises and the Building.

 

ARTICLE 37

MISCELLANEOUS

 

Section 37.1           This Lease is offered for signature by Tenant and it is
understood that this Lease shall not be binding upon Landlord or Tenant unless
and until Landlord and Tenant shall have executed and delivered a fully
executed copy of this Lease to each other.

 

Section 37.2           Neither the partners (direct or indirect) comprising
Landlord, nor the shareholders (nor any of the partners comprising same),
partners, directors or officers of any of the foregoing (collectively, the “Parties”)
shall be liable for the performance of Landlord’s obligations under this Lease.
Tenant shall look solely to Landlord to enforce Landlord’s obligations
hereunder and shall not seek any damages against any of the Parties. The
obligations of Landlord under this Lease shall not be binding upon Landlord
named herein after the sale,

 

85

 

conveyance, assignment or transfer by such Landlord (or upon any
subsequent landlord after the sale, conveyance, assignment or transfer by such
subsequent landlord) of its interest in the Building or the Real Property, as
the case may be, and in the event of any such sale, conveyance, assignment or
transfer, and the transfer of the security deposit to the purchaser, grantee,
assignee or transferee, as the case may be, Landlord shall be and hereby is
entirely freed and relieved of all covenants and obligations of Landlord
hereunder and such transferee shall be deemed to have assumed the obligations
of Landlord under this Lease without the need for any additional writing or instrument
evidencing such assumption, subject to the terms hereof. Prior to any such
sale, conveyance, assignment or transfer, the liability of Landlord for
Landlord’s obligations under this Lease shall be limited to Landlord’s interest
in the Real Property (including all rent and occupancy related proceeds, the
net proceeds distributed or retained by Landlord from any sale, financing or
refinancing of the Real Property or the Building, and any net insurance
proceeds or condemnation awards relating to any portion of the Real Property
not used for the repair or restoration of the Real Property or any portion
thereof) and Tenant shall not look to any other property or assets of Landlord
or the property or assets of any of the Parties in seeking either to enforce
Landlord’s obligations under this Lease or to satisfy a judgment for Landlord’s
failure to perform such obligations.

 

Section 37.3           Notwithstanding anything contained in this Lease to the
contrary, all amounts payable by Tenant to or on behalf of Landlord under this
Lease, whether or not expressly denominated Fixed Rent, Escalation Rent,
additional rent or Rental, shall constitute rent for the purposes of Section
502(b)(7) of the Bankruptcy Code.

 

Section 37.4           [Intentionally omitted].

 

Section 37.5           (A)  If there is a
dispute between Landlord and Tenant as to the reasonableness of Landlord’s
refusal to (i) consent to any subletting or assignment where Landlord has
agreed pursuant to the terms of Article 12 hereof to be reasonable or (ii)
approve any contractor or plans and specifications where Landlord has agreed
pursuant to the terms of Article 3 hereof to be reasonable, Tenant shall give
Landlord a notice setting forth the reasons for its dispute, and if within two
(2) Business Days after Landlord’s receipt of such notice, Landlord and Tenant
shall be unable to resolve such dispute, such dispute shall be resolved by
arbitration conducted pursuant to the Expedited Procedures provisions of the
Commercial Arbitration Rules of the American Arbitration Association (“AAA”);
provided, however, that with respect to any such
arbitration:  (i) the list of arbitrators
referred to in said Rules shall be returned within five (5) Business Days from
the date of mailing; (ii) the parties shall notify the AAA, by telephone, within
three (3) Business Days of any objections to the arbitrator appointed and will
have no right to object if the arbitrator so appointed was on the list
submitted by the AAA and was not objected to in accordance with the Rules of
the AAA; (iii) the hearing shall be held within five (5) Business Days after
the appointment of the arbitrator; and (iv) the arbitrator shall render its
determination within five (5) Business Days after the completion of the hearing.
Except to the extent expressly provided herein, no other disputes hereunder
shall be resolved by arbitration.

 

(B)           If
the determination of any such arbitration shall be that Landlord was
unreasonable in refusing to consent to such assignment or subletting or
contractor or plans, then unless Landlord shall have acted arbitrarily or
capriciously in its refusal to grant such

 

86

 

consent, Tenant’s sole remedy arising out of such arbitrator’s
determination shall be the right to enter into the proposed assignment or
subletting or contractor or plans.

 

(C)           The
arbitrators shall be bound by the provisions of this Lease and shall not have
the power to add to, subtract from, or otherwise modify such provisions. Each
of the arbitrators shall have at least ten (10) years’ experience in the
business of managing first-class office buildings located in Manhattan or
acting as a real estate broker dealing with such office buildings.

 

Section 37.6           Tenant hereby waives any claim against Landlord which Tenant
may have based upon any assertion that Landlord has unreasonably withheld or
unreasonably delayed any consent or approval requested by Tenant, and Tenant
agrees that its sole remedy shall be an action or proceeding to enforce any
related provision or for specific performance, injunction or declaratory
judgment except in the case that Landlord has maliciously or otherwise in bad
faith withheld any such consent or approval in which case Tenant may bring an
action against Landlord for damages. In the event of such determination, the
requested consent or approval shall be deemed to have been granted; however,
Landlord shall have no liability to Tenant for its refusal or failure to give
such consent or approval in the absence of a judicial determination of malice
or bad faith on the part of Landlord. Tenant’s sole remedy for Landlord’s
unreasonably withholding or delaying consent or approval shall be as provided
in this Section 37.5.

 

Section 37.7           Landlord shall make available to Tenant the computerized
directory in the lobby of the Building for up to Tenant’s Share of such
listings (but in no event shall Tenant be entitled to less than one hundred
twenty (120) such listings). The initial programming shall be without charge to
Tenant. From time to time, but not more frequently than once every three (3)
months, Landlord shall reprogram the computerized directory to reflect such
changes in the listings therein as Tenant shall request, and Tenant promptly
after request shall pay to Landlord a reasonable reprogramming charge for each reprogramming
Tenant requests. If Landlord replaces the computerized directory with a
standard directory in the lobby of the Building, Tenant shall be entitled to
Tenant’s Share of such listing’s on such directory.

 

Section 37.8           Landlord may, from time to time, designate an agent who is
authorized to act on behalf of Landlord with respect to the performance of
Landlord’s obligations under this Lease. Until such time as Landlord shall
notify Tenant to the contrary, Insignia is designated as such an agent. Tenant
shall deal solely with Insignia in the administration and performance of
Landlord’s obligations under this Lease until such time as Tenant is notified
that Insignia is no longer acting as an agent of Landlord. Landlord may
designate an additional or new agent upon ten (10) days’ notice to Tenant. Tenant
acknowledges that Insignia or any such agent is acting solely as agent for
Landlord in connection with the foregoing and Insignia or any such agent and
its direct and indirect partners, officers, shareholders, directors and
employees shall have no liability to Tenant in connection with the performance
of Landlord’s obligations under this Lease except for its gross negligence or
willful misconduct and Tenant hereby waives any and all claims against any such
party arising out of, or in any way connected with, this Lease or the Real
Property except for its gross negligence or willful misconduct.

 

87

 

Section 37.9           All references in this Lease to the consent or approval of
Landlord shall be deemed to mean the written consent or approval of Landlord
and no consent or approval of Landlord shall be effective for any purpose
unless such consent or approval is set forth in a written instrument executed
by Landlord.

 

Section 37.10         In the event of a breach or threatened breach by Landlord,
or any persons claiming through or under Landlord, of any term, covenant or
condition of this Lease, Tenant shall have the right to enjoin such breach and
the right to invoke any other remedy allowed by law or in equity. The right to
invoke the remedies hereinbefore set forth are cumulative and shall not
preclude Tenant from invoking any other remedy allowed at law or in equity.

 

Section 37.11         In the event of any litigation or arbitration arising out of
this Lease, the prevailing party shall be entitled to receive from the losing
party an amount equal to the prevailing party’s reasonable costs incurred in
such litigation or arbitration, including, without limitation, the prevailing
party’s reasonable attorneys’ fees, costs and disbursements. If both parties
are partially successful, such fees and expenses shall be apportioned between
Landlord and Tenant in inverse proportion to the amount by which such decision
is favorable to each party.

 

ARTICLE 38

RENT
CONTROL

 

If at
the commencement of, or at any time or times during the Term of this Lease, the
Rental reserved in this Lease shall not be fully collectible by reason of any
Requirement, Tenant shall enter into such agreements and take such other steps
(without additional expense to Tenant) as Landlord may reasonably request and
as may be legally permissible to permit Landlord to collect the maximum rents
which may from time to time during the continuance of such legal rent
restriction be legally permissible (and not in excess of the amounts reserved
therefor under this Lease). Upon the termination of such legal rent restriction
prior to the expiration of the Term, (a) the Rental shall become and thereafter
be payable hereunder in accordance with the amounts reserved in this Lease for
the periods following such termination and (b) Tenant shall pay to Landlord, if
legally permissible, an amount equal to (i) the items of Rental which would
have been paid pursuant to this Lease but for such legal rent restriction less
(ii) the rents paid by Tenant to Landlord during the period or periods such
legal rent restriction was in effect.

 

88

 

IN
WITNESS WHEREOF, Landlord and Tenant have respectively executed this Lease as
of the day and year 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:

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