Document:

Exhibit 10.33

 

RIGEL PHARMACEUTICALS, INC.

 

2000 NON-EMPLOYEE DIRECTORS’ STOCK OPTION PLAN

 

ADOPTED AUGUST 18, 2000

APPROVED BY STOCKHOLDERS SEPTEMBER 11, 2000

EFFECTIVE DATE: DECEMBER 4, 2000

AMENDED AND RESTATED APRIL 24, 2003

AMENDED AND RESTATED JUNE 20, 2003

APPROVED
BY STOCKHOLDERS JUNE 20, 2003

AMENDED
AND RESTATED APRIL 22, 2005

APPROVED
BY STOCKHOLDERS JUNE 2, 2005

 

1.             PURPOSES.

 

(a)           Eligible
Option Recipients.  The persons
eligible to receive Options are the Non-Employee Directors of the Company.

 

(b)           Available
Options.  The purpose of the Plan is
to provide a means by which Non-Employee Directors may be given an opportunity
to benefit from increases in value of the Common Stock through the granting of
Nonstatutory Stock Options.

 

(c)           General
Purpose.  The Company, by means of
the Plan, seeks to retain the services of its Non-Employee Directors, to secure
and retain the services of new Non-Employee Directors and to provide incentives
for such persons to exert maximum efforts for the success of the Company and
its Affiliates.

 

2.             DEFINITIONS.

 

(a)           “Affiliate” means any parent
corporation or subsidiary corporation of the Company, whether now or hereafter
existing, as those terms are defined in Sections 424(e) and (f),
respectively, of the Code.

 

(b)           “Annual Grant” means an Option granted annually to all
Non-Employee Directors who meet the criteria specified in subsection 6(b) of
the Plan.

 

(c)           “Annual Meeting” means the annual meeting of the
stockholders of the Company.

 

(d)           “Board” means the Board of Directors
of the Company.

 

(e)           “Code” means the Internal Revenue
Code of 1986, as amended.

 

(f)            “Common Stock” means the common stock
of the Company.

 

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(g)           “Company” means Rigel Pharmaceuticals, Inc.,
a Delaware corporation.

 

(h)           “Consultant” means any person,
including an advisor, (i) engaged by the Company or an Affiliate to render
consulting or advisory services and who is compensated for such services or (ii) who
is a member of the Board of Directors of an Affiliate.  However, the term “Consultant” shall not
include either Directors of the Company who are not compensated by the Company
for their services as Directors or Directors of the Company who are merely paid
a director’s fee by the Company for their services as Directors.

 

(i)            “Continuous Service” means that the
Optionholder’s service with the Company or an Affiliate, whether as an
Employee, Director or Consultant, is not interrupted or terminated.  The Optionholder’s Continuous Service shall
not be deemed to have terminated merely because of a change in the capacity in
which the Optionholder renders service to the Company or an Affiliate as an
Employee, Consultant or Director or a change in the entity for which the
Optionholder renders such service, provided that there is no interruption or
termination of the Optionholder’s service. 
For example, a change in status without interruption from a Non-Employee
Director of the Company to a Consultant of an Affiliate or an Employee of the
Company will not constitute an interruption of Continuous Service.  The Board or the chief executive officer of
the Company, in that party’s sole discretion, may determine whether Continuous
Service shall be considered interrupted in the case of any leave of absence
approved by that party, including sick leave, military leave or any other
personal leave.

 

(j)            “Director” means a member of the
Board of Directors of the Company.

 

(k)           “Disability” means the permanent and total disability of
a person within the meaning of Section 22(e)(3) of the Code.

 

(l)            “Employee” means any person employed
by the Company or an Affiliate.  Mere
service as a Director or payment of a director’s fee by the Company or an
Affiliate shall not be sufficient to constitute “employment” by the Company or
an Affiliate.

 

(m)          “Exchange Act” means the Securities
Exchange Act of 1934, as amended.

 

(n)           “Fair Market Value” means, as of any
date, the value of the Common Stock determined as follows:

 

(i)            If
the Common Stock is listed on any established stock exchange or traded on the
Nasdaq National Market or the Nasdaq SmallCap Market, the Fair Market Value of
a share of Common Stock shall be the closing sales price for such stock (or the
closing bid, if no sales were reported) as quoted on such exchange or market
(or the exchange or market with the greatest volume of trading in the Common
Stock) on the last market trading day prior to the day of determination, as
reported in The Wall Street Journal or such other source as the Board deems
reliable.

 

(ii)           In
the absence of such markets for the Common Stock, the Fair Market Value shall
be determined in good faith by the Board.

 

2

 

(o)           “Initial Grant” means an Option granted to a
Non-Employee Director who meets the criteria specified in subsection 6(a) of
the Plan.

 

(p)           “IPO Date” means the effective date of the initial
public offering of the Common Stock.

 

(q)           “Non-Employee Director” means a
Director who is not an Employee.

 

(r)           “Nonstatutory Stock Option” means an
Option not intended to qualify as an incentive stock option within the meaning
of Section 422 of the Code and the regulations promulgated thereunder.

 

(s)           “Officer” means a person who is an
officer of the Company within the meaning of Section 16 of the Exchange Act
and the rules and regulations promulgated thereunder.

 

(t)            “Option” means a Nonstatutory Stock
Option granted pursuant to the Plan.

 

(u)           “Option Agreement” means a written
agreement between the Company and an Optionholder evidencing the terms and
conditions of an individual Option grant. 
Each Option Agreement shall be subject to the terms and conditions of
the Plan.

 

(v)            “Optionholder” means a person to whom
an Option is granted pursuant to the Plan or, if applicable, such other person
who holds an outstanding Option.

 

(w)           “Plan” means this Rigel
Pharmaceuticals, Inc. 2000 Non-Employee Directors’ Stock Option Plan.

 

(x)           “Rule 16b-3” means Rule 16b-3
promulgated under the Exchange Act or any successor to Rule 16b-3,
as in effect from time to time.

 

(y)           “Securities Act” means the Securities
Act of 1933, as amended.

 

3.             ADMINISTRATION.

 

(a)           Administration
by Board.  The Board shall administer
the Plan. The Board may not delegate administration of the Plan to a committee.

 

(b)           Powers
of Board.  The Board shall have the
power, subject to, and within the limitations of, the express provisions of the
Plan:

 

(i)            To
determine the provisions of each Option to the extent not specified in the
Plan.

 

(ii)           To
construe and interpret the Plan and Options granted under it, and to establish,
amend and revoke rules and regulations for its administration.  The Board, in the exercise of this power, may
correct any defect, omission or inconsistency in the Plan or in any

 

3

 

Option Agreement, in a
manner and to the extent it shall deem necessary or expedient to make the Plan
fully effective.

 

(iii)         To
amend the Plan or an Option as provided in Section 12.

 

(iv)          To
terminate or suspend the Plan as provided in Section 13.

 

(v)            Generally,
to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company that are not in
conflict with the provisions of the Plan.

 

(c)           Effect of Board’s Decision. All determinations, interpretations and
constructions made by the Board in good faith shall not be subject to review by
any person and shall be final, binding and conclusive on all persons.

 

(d)           Cancellation and Re-Grant of Options.  Notwithstanding anything to the contrary in
the Plan, neither the Board nor any Committee shall have the authority to: (i) reprice
any outstanding Option under the Plan, (ii) cancel and re-grant any
outstanding Option under the Plan, or (iii) effect any other action that
is treated as a repricing under generally accepted accounting principles
unless, in each case, the stockholders of the Company have approved such an
action within twelve (12) months prior to such an event.

 

4.             SHARES SUBJECT TO THE PLAN.

 

(a)           Share
Reserve.  Subject to the provisions
of Section 11 relating to adjustments upon changes in the Common Stock,
the Common Stock that may be issued pursuant to Options shall not exceed in the
aggregate three hundred twenty-five thousand (325,000) shares of Common Stock.

 

(b)           Reversion
of Shares to the Share Reserve.  If
any Option shall for any reason expire or otherwise terminate, in whole or in
part, without having been exercised in full, the shares of Common Stock not
acquired under such Option shall revert to and again become available for issuance
under the Plan.  If any shares subject to
an Option are not delivered to an Optionholder because the Option is exercised
through a reduction of shares subject to the Option (i.e.,
“net exercised”), the number of shares that are not delivered to the Optionholder
shall not remain available for issuance under the Plan.  If any shares subject to an Option are not
delivered to an Optionholder because such shares are withheld in satisfaction
of the withholding of taxes incurred in connection with the exercise of an
Option, the number of shares that are not delivered to the Optionholder shall
not remain available for subsequent issuance under the Plan.  If the exercise price of any Option is
satisfied by tendering shares of Common Stock held by the Optionholder (either
by actual delivery or attestation), then the number of shares so tendered shall
not remain available for subsequent issuance under the Plan.

 

(c)           Source
of Shares.  The shares of Common
Stock subject to the Plan may be unissued shares or reacquired shares, bought
on the market or otherwise.

 

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5.             ELIGIBILITY.

 

The Options as set forth
in section 6 automatically shall be granted under the Plan to all
Non-Employee Directors.

 

6.             NON-DISCRETIONARY GRANTS.

 

(a)           Initial
Grants.   Without any further action
of the Board, each person who is elected or appointed for the first time to be
a Non-Employee Director after the IPO Date automatically shall, upon the date
of his or her initial election or appointment to be a Non-Employee Director by
the Board or stockholders of the Company, be granted an Initial Grant to
purchase twenty thousand (20,000) shares of Common Stock on the terms and
conditions set forth herein.

 

(b)           Annual
Grants. Without any further action of the Board, a Non-Employee Director
shall be granted an Annual Grant as follows: On the day following each Annual
Meeting commencing with the Annual Meeting in 2001, each person who is then a
Non-Employee Director automatically shall be granted an Annual Grant to
purchase ten thousand (10,000) shares of Common Stock on the terms and
conditions set forth herein; provided, however,
that if the person has not been serving as a Non-Employee Director for the
entire period since the preceding Annual Meeting, then the number of shares
subject to the Annual Grant shall be reduced pro rata for each full quarter
prior to the date of grant during which such person did not serve as a
Non-Employee Director.

 

7.             OPTION PROVISIONS.

 

Each Option shall be in
such form and shall contain such terms and conditions as required by the
Plan.  Each Option shall contain such
additional terms and conditions, not inconsistent with the Plan, as the Board
shall deem appropriate.  Each Option
shall include (through incorporation of provisions hereof by reference in the
Option or otherwise) the substance of each of the following provisions:

 

(a)           Term.  No Option shall be exercisable after the
expiration of ten (10) years from the date it was granted.

 

(b)           Exercise
Price.  The exercise price of each
Option shall be one hundred percent (100%) of the Fair Market Value of the
stock subject to the Option on the date the Option is granted.  Notwithstanding the foregoing, an Option may
be granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner satisfying the provisions of Section 424(a) of
the Code.

 

(c)           Consideration.  The purchase price of stock acquired pursuant
to an Option may be paid, to the extent permitted by applicable statutes and
regulations, in any combination of the following methods:

 

5

 

(i)            By
cash or check.

 

(ii)           Provided that at the time of exercise the Common
Stock is publicly traded and quoted regularly in The Wall
Street Journal, by delivery of already-owned shares of Common Stock
either that the Optionholder has held for more than six (6) months
(or such longer or shorter period of time required to avoid a charge to
earnings for financial accounting purposes) or
that the Optionholder did not acquire, directly or indirectly from the Company,
that are owned free and clear of any liens, claims, encumbrances or security
interests, and that are valued at Fair Market Value on the date of
exercise.  “Delivery” for these purposes
shall include delivery to the Company of the Optionholder’s attestation of
ownership of such shares of Common Stock in a form approved by the
Company.  Notwithstanding the foregoing,
the Optionholder may not exercise the Option by tender to the Company of Common
Stock to the extent such tender would violate the provisions of any law,
regulation or agreement restricting the redemption of the Company’s stock.

 

(iii)         Provided that at the time of exercise the Common
Stock is publicly traded and quoted regularly in The Wall
Street Journal, pursuant to a program developed under Regulation T
as promulgated by the Federal Reserve Board that, prior to the issuance of
Common Stock, results in either the receipt of cash (or check) by the Company
or the receipt of irrevocable instructions to pay the aggregate exercise price
to the Company from the sales proceeds.

 

(iv)          By
a “net exercise” arrangement pursuant to which the Company will reduce the
number of shares of Common Stock issued upon exercise by the largest whole
number of shares with a Fair Market Value that does not exceed the aggregate
exercise price; provided, however,
that the Company shall accept a cash or other payment from the Optionholder to the
extent of any remaining balance of the aggregate exercise price not satisfied
by such holding back of whole shares; provided,
further, however, that shares of Common Stock will no longer be
outstanding under an Option and will not be exercisable thereafter to the
extent that (i) shares are used to pay the exercise price pursuant to the “net
exercise,” (ii) shares are delivered to the Optionholder as a result of
such exercise, and (iii) shares are withheld to satisfy tax withholding
obligations.

 

(d)           Transferability.  An Option
is transferable by will or by the laws of descent and distribution.  An Option also is transferable (i) by
instrument to an inter vivos or testamentary trust, in a form accepted
by the Company, in which the Option is to
be passed to beneficiaries upon the death of the trustor (settlor) and (ii) by
gift, in a form accepted by the Company, to a member of the “immediate family” of the Optionholder as that term
is defined in 17 C.F.R. 240.16a-1(e). 
An Option shall be exercisable during the lifetime of the
Optionholder only by the Optionholder and a
permitted transferee as provided herein. 
However, the Optionholder may, by delivering written notice to
the Company, in a form satisfactory to the Company, designate a third party
who, in the event of the death of the Optionholder, shall thereafter be
entitled to exercise the Option.

 

(e)           Exercise
Schedule. The Option shall be exercisable as the shares of Common Stock
subject to the Option vest.

 

6

 

(f)            Vesting
Schedule.  Each Option shall vest in
accordance with the schedule set forth below that results in a shorter
period of full vesting:

 

(i)            1/36th
of the shares of Common Stock subject to the Option shall vest each month after
the date of grant over a period of three (3) years; or

 

(ii)           the
Option shall vest in equal monthly installments after the date of grant over a
period commencing on the date that the Optionholder is appointed for the first
time to be a Non-Employee Director by the Board and ending on the date of the
Annual Meeting at which the Optionholder is first scheduled to be considered
for election to be a Non-Employee Director by the stockholders of the Company.

 

(g)           Termination
of Continuous Service.  In the event
an Optionholder’s Continuous Service terminates (other than upon the
Optionholder’s death or Disability), the Optionholder may exercise his or her
Option (to the extent that the Optionholder was entitled to exercise it as of
the date of termination) but only within such period of time ending on the
earlier of (i) the date three (3) months following the termination of
the Optionholder’s Continuous Service, or (ii) the expiration of the term
of the Option as set forth in the Option Agreement.  If, after termination, the Optionholder does
not exercise his or her Option within the time specified in the Option
Agreement, the Option shall terminate.

 

(h)           Extension
of Termination Date. If the exercise of the Option following the
termination of the Optionholder’s Continuous Service (other than upon the
Optionholder’s death or Disability) would be prohibited at any time solely
because the issuance of shares would violate the registration requirements
under the Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in subsection 7(a) or (ii) the
expiration of a period of three (3) months after the termination of the
Optionholder’s Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements.

 

(i)            Disability
of Optionholder.  In the event an
Optionholder’s Continuous Service terminates as a result of the Optionholder’s
Disability, the Optionholder may exercise his or her Option (to the extent that
the Optionholder was entitled to exercise it as of the date of termination),
but only within such period of time ending on the earlier of (i) the date
twelve (12) months following such termination or (ii) the expiration of
the term of the Option as set forth in the Option Agreement.  If, after termination, the Optionholder does
not exercise his or her Option within the time specified herein, the Option
shall terminate.

 

(j)            Death
of Optionholder.  In the event (i) an
Optionholder’s Continuous Service terminates as a result of the Optionholder’s
death or (ii) the Optionholder dies within the three-month period after
the termination of the Optionholder’s Continuous Service for a reason other
than death, then the Option may be exercised (to the extent the Optionholder
was entitled to exercise the Option as of the date of death) by the
Optionholder’s estate, by a person who acquired the right to exercise the
Option by bequest or inheritance or by a person designated to exercise the
Option upon the Optionholder’s death, but only within the period ending on the
earlier of (1) the date eighteen (18) months following the date of death
or (2) the expiration of

 

7

 

the term of such Option
as set forth in the Option Agreement. 
If, after death, the Option is not exercised within the time specified
herein, the Option shall terminate.

 

8.             COVENANTS OF THE COMPANY.

 

(a)           Availability
of Shares.  During the terms of the
Options, the Company shall keep available at all times the number of shares of
Common Stock required to satisfy such Options.

 

(b)           Securities
Law Compliance.  The Company shall
seek to obtain from each regulatory commission or agency having jurisdiction
over the Plan such authority as may be required to grant Options and to issue
and sell shares of Common Stock upon exercise of the Options; provided,
however, that this undertaking shall not require the Company to register under
the Securities Act the Plan, any Option or any stock issued or issuable
pursuant to any such Option.  If, after
reasonable efforts, the Company is unable to obtain from any such regulatory
commission or agency the authority which counsel for the Company deems
necessary for the lawful issuance and sale of stock under the Plan, the Company
shall be relieved from any liability for failure to issue and sell stock upon
exercise of such Options unless and until such authority is obtained.

 

9.             USE OF PROCEEDS FROM STOCK.

 

Proceeds from the sale of
stock pursuant to Options shall constitute general funds of the Company.

 

10.          MISCELLANEOUS.

 

(a)           Stockholder
Rights.  No Optionholder shall be
deemed to be the holder of, or to have any of the rights of a holder with
respect to, any shares subject to such Option unless and until such
Optionholder has satisfied all requirements for exercise of the Option pursuant
to its terms.

 

(b)           No
Service Rights.  Nothing in the Plan
or any instrument executed or Option granted pursuant thereto shall confer upon
any Optionholder any right to continue to serve the Company as a Non-Employee Director
or shall affect the right of the Company or an Affiliate to terminate (i) the
employment of an Employee with or without notice and with or without cause, (ii) the
service of a Consultant pursuant to the terms of such Consultant’s agreement
with the Company or an Affiliate or (iii) the service of a Director
pursuant to the Bylaws of the Company or an Affiliate, and any applicable
provisions of the corporate law of the state in which the Company or the
Affiliate is incorporated, as the case may be.

 

(c)           Investment
Assurances.  The Company may require
an Optionholder, as a condition of exercising or acquiring stock under any
Option, (i) to give written assurances satisfactory to the Company as to
the Optionholder’s knowledge and experience in financial and business matters
and/or to employ a purchaser representative reasonably satisfactory to the
Company who is knowledgeable and experienced in financial and business matters
and that he or she is capable of evaluating, alone or together with the purchaser
representative, the merits and

 

8

 

risks of exercising the
Option; and (ii) to give written assurances satisfactory to the Company
stating that the Optionholder is acquiring the stock subject to the Option for
the Optionholder’s own account and not with any present intention of selling or
otherwise distributing the stock.  The
foregoing requirements, and any assurances given pursuant to such requirements,
shall be inoperative if (iii) the issuance of the shares upon the exercise
or acquisition of stock under the Option has been registered under a then
currently effective registration statement under the Securities Act or (iv) as
to any particular requirement, a determination is made by counsel for the
Company that such requirement need not be met in the circumstances under the
then applicable securities laws.  The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or appropriate
in order to comply with applicable securities laws, including, but not limited
to, legends restricting the transfer of the stock.

 

(d)           Withholding
Obligations.  The Optionholder may
satisfy any federal, state or local tax withholding obligation relating to the
exercise or acquisition of stock under an Option by any of the following means
(in addition to the Company’s right to withhold from any compensation paid to
the Optionholder by the Company) or by a combination of such means:  (i) tendering a cash payment; (ii) authorizing
the Company to withhold shares from the shares of the Common Stock otherwise
issuable to the Optionholder as a result of the exercise or acquisition of
stock under the Option, provided, however, that no shares of Common Stock are
withheld with a value exceeding the minimum amount of tax required to be
withheld by law; or (iii) delivering to the Company owned and unencumbered
shares of the Common Stock.

 

11.          ADJUSTMENTS UPON CHANGES IN STOCK.

 

(a)           Capitalization
Adjustments.  If any change is made
in the stock subject to the Plan, or subject to any Option, without the receipt
of consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange
of shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject both to the
Plan pursuant to subsection 4(a) and to the nondiscretionary Options
specified in Section 5, and the outstanding Options will be appropriately
adjusted in the class(es) and number of securities and price per share of stock
subject to such outstanding Options.  The
Board shall make such adjustments, and its determination shall be final,
binding and conclusive.  (The conversion
of any convertible securities of the Company shall not be treated as a transaction
“without receipt of consideration” by the Company.)

 

(b)           Dissolution
or Liquidation.  In the event of a
dissolution or liquidation of the Company, then all outstanding Options shall
terminate immediately prior to such event.

 

(c)           Corporate
Transaction.  In the event of (i) a
sale, lease or other disposition of all or substantially all of the securities
or assets of the Company, (ii) a merger or consolidation in which the
Company is not the surviving corporation or (iii) a reverse merger in
which the Company is the surviving corporation but the shares of Common Stock
outstanding immediately

 

9

 

preceding the merger are
converted by virtue of the merger into other property, whether in the form of
securities, cash or otherwise, then any surviving corporation or acquiring
corporation may assume any Options outstanding under the Plan or may substitute
similar Options (including an option to acquire the same consideration paid to
the stockholders in the transaction described in this subsection 11(c))
for those outstanding under the Plan.  In
the event no surviving corporation or acquiring corporation assumes such
Options or substitutes similar Options for those outstanding under the Plan,
then with respect to Options held by Optionholders whose Continuous Service has
not terminated, the vesting of such Options (and the time during which such
Options may be exercised) shall be accelerated in full, and the Options shall
terminate if not exercised at or prior to such event.  With respect to any other Options outstanding
under the Plan, such Options shall terminate if not exercised prior to such
event.

 

12.          AMENDMENT OF THE PLAN AND OPTIONS.

 

(a)           Amendment
of Plan.  The Board at any time, and
from time to time, may amend the Plan. 
However, except as provided in Section 11 relating to adjustments
upon changes in stock, no amendment shall be effective unless approved by the
stockholders of the Company to the extent stockholder approval is necessary to
satisfy the requirements of Rule 16b-3 or any Nasdaq or securities
exchange listing requirements.

 

(b)           Stockholder
Approval.  The Board may, in its sole
discretion, submit any other amendment to the Plan for stockholder approval.

 

(c)           No
Impairment of Rights.  Rights under any
Option granted before amendment of the Plan shall not be impaired by any
amendment of the Plan unless (i) the Company requests the consent of the
Optionholder and (ii) the Optionholder consents in writing.

 

(d)           Amendment
of Options.  The Board at any time,
and from time to time, may amend the terms of any one or more Options;
provided, however, that the rights under any Option shall not be impaired by
any such amendment unless (i) the Company requests the consent of the
Optionholder and (ii) the Optionholder consents in writing.

 

13.          TERMINATION OR SUSPENSION OF THE PLAN.

 

(a)           Plan
Term.  The Board may suspend or
terminate the Plan at any time.  No
Options may be granted under the Plan while the Plan is suspended or after it
is terminated.

 

(b)           No
Impairment of Rights. Suspension or termination of the Plan shall not
impair rights and obligations under any Option granted while the Plan is in
effect except with the written consent of the Optionholder.

 

14.          EFFECTIVE DATE OF PLAN.

 

The Plan shall become
effective on the IPO Date, but no Option shall be exercised unless and until
the Plan has been approved by the stockholders of the Company, which approval
shall be within twelve (12) months before or after the date the Plan is adopted
by the Board.

 

10

 

15.          CHOICE OF LAW.

 

All questions concerning the construction, validity
and interpretation of this Plan shall be governed by the law of the State of
Delaware, without regard to such state’s conflict of laws rules.

 

11Exhibit 10.1

 

LEASE

 

I &
G LEXINGTON, L.L.C.,

Landlord

 

 

and

FASTCLICK, INC.,

Tenant

 

	
  Premises:

  	
   

  	
  Suite 908

  	
   

  
	
   

  	
   

  	
  370 Lexington

  Avenue

  	
   

  
	
   

  	
   

  	
  New York, NY 10017

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
  June 1, 2005

  	
   

  

 

 

Table of Contents 

 

	
  Article 1. Basic Terms and Definitions

  	
   

  
	
  Exhibit A The
  Premises

  	
   

  
	
  Exhibit B
  Intentionally Omitted

  	
   

  
	
  Exhibit C
  Commencement Date Agreement

  	
   

  
	
  Exhibit D
  Cleaning Specifications

  	
   

  
	
  Exhibit E
  Landlord’s Regulations

  	
   

  
	
   

  	
   

  
	
  Article 2. Demise; Rent 

  	
   

  
	
   

  	
   

  
	
  Article 3. Use 

  	
   

  
	
   

  	
   

  
	
  Article 4. Condition of the
  Premises 

  	
   

  
	
   

  	
   

  
	
  Article 5. Tenant’s Work 

  	
   

  

 

 

	
  Article 6. Real Estate Taxes 

  	
   

  
	
   

  	
   

  
	
  Article 7.
  Wage Rates 

  	
   

  
	
   

  	
   

  
	
  Article 8. Electricity 

  	
   

  
	
   

  	
   

  
	
  Article 9. Services 

  	
   

  
	
   

  	
   

  
	
  Article 10. Repairs 

  	
   

  
	
   

  	
   

  
	
  Article 11. Laws 

  	
   

  

 

 

	
  Article 12. Subordination;
  Estoppel Certificates 

  	
   

  
	
   

  	
   

  
	
  Article 13.
  Insurance 

  	
   

  
	
   

  	
   

  
	
  Article 14.
  Waiver of Claims; Waiver of Subrogation 

  	
   

  
	
   

  	
   

  
	
  Article 15.
  Indemnity 

  	
   

  
	
   

  	
   

  
	
  Article 16.
  Casualty 

  	
   

  
	
   

  	
   

  
	
  Article 17.
  Condemnation 

  	
   

  

 

 

	
  Article 18.
  Assignment and Subletting

  	
   

  
	
   

  	
   

  
	
  Article 19.
  Access 

  	
   

  
	
   

  	
   

  
	
  Article 20.
  Default 

  	
   

  
	
   

  	
   

  
	
  Article 21.
  Remedies 

  	
   

  
	
   

  	
   

  
	
  Article 22.
  Security Deposit 

  	
   

  
	
   

  	
   

  
	
  Article 23.
  Broker 

  	
   

  

 

 

	
  Article 24.
  Notices 

  	
   

  
	
   

  	
   

  
	
  Article 25.
  Representations, Waivers (including jury trial waiver) and Liability 

  	
   

  
	
   

  	
   

  
	
  Article 26.
  End of Term 

  	
   

  
	
   

  	
   

  
	
  Article 27.
  Substitute Space 

  	
   

  
	
   

  	
   

  
	
  Article 28. Miscellaneous 

  	
   

  

 

130565.3 i

 

	
  Exhibit F Standby
  Letter of Credit

  	
   

  
	
  Exhibit G Approved
  Contractors

  	
   

  
	
  Exhibit H
  Intentionally Omitted

  	
   

  
	
  Exhibit I’ Estoppel
  Certificate

  	
   

  

 

 

Lease 

 

Lease dated June 1, 2005,
between I & G LEXINGTON, L.L.C., a New York limited liability company,
having an office in care of LaSalle Investment Management, 153 East 53rd
Street, New York, NY 10022 (“Landlord”), and FASTCLICK, INC., a California
corporation, having offices at 360 Olive Street, Santa Barbara, CA 93101 (“Tenant”).

 

Article 1. Basic Terms and Definitions

 

Section 1.1 Intentionally Omitted.

 

Section 1.2 Broker.  Jones Lang LaSalle Americas, 153 East 53rd
Street, New York, NY and Cresa Partners, LLC, 100 Park Avenue (24th Floor), New
York, NY.

 

Section 1.3 Electricity Charge. $11,805.00
per annum, subject to adjustment as provided in Article 8 of this Lease.

 

Section 1.4 Fixed Rent. (a) $137,725.00
per annum from the Commencement Date, as such term is hereinafter defined,
through the day immediately preceding the 1st anniversary of the Commencement
Date; (b) $141,168.135 per annum from the 1st anniversary of the
Commencement Date through the day immediately preceding the 2nd anniversary of
the Commencement Date; (c) $144,697.33 per annum from the 2nd anniversary
of the Commencement Date through the day immediately preceding the 3rd
anniversary of the Commencement Date; (d) $160,414.89 per annum from the
3rd anniversary of the Commencement Date through the day immediately preceding
the 4th anniversary of the Commencement Date; and (e) $164,425.26 per
annum from the 4th anniversary of the Commencement Date through the Fixed
Expiration Date, as such term is hereinafter defined.

 

Section 1.5 Fixed Rent Abatement Period. Ninety (90)
days following the Commencement Date.

 

Section 1.6 Guarantor. None 

 

Section 1.7 Intentionally Omitted. 

 

Section 1.8
Managing Agent. Jones Lang LaSalle Americas, Inc.,
or any successor managing agent of the Building designated by Land lord in a
notice to Tenant from time to time.

 

Section 1.9
Notice Address.

 

Landlord:

 

I & G Lexington
L.L.C.

Management Office 370 

Lexington Avenue New 

York, New York 10017

Attention: Building 

Manager with a copy to:

 

 

I & G Lexington
L.L.C. c/o LaSalle Investment

Management 153 East 53rd Street New
York, NY 10022 

Attention: Mr. Brian
Tague

 

Tenant:

 

Before the Commencement
Date:

 

c/o Hughes Hubbard &
Reed LLP

One Battery Park Plaza

New York, NY 10004

Attention: Thomas Furst, Esq.

 

After the Commencement Date:

 

370 Lexington Avenue (Suite 908)

New York, NY 10017

Attention: President

 

With a copy to:

 

360 Olive Street

Santa Barbara, CA 93101

Attention: Chief Financial

Officer

 

Section 1.10
Permitted Use. Executive and general offices.

 

Section 1.11 Premises. The portion
of the 9th floor shown cross-hatched on Exhibit A to this Lease
(including, without limitation, any fixtures and improvements existing on the
date of this Lease which are not removed by the existing occupant prior to the
Commencement Date and any other fixtures and improvements made by Landlord
after the date of this Lease) and commonly known as Suite 908 (the “Premises”)
in the building located at and commonly known as 370 Lexington Avenue, New
York, New York 10017 (“Building”; and the land used in connection with the
Building is called “Land”). The Building and the Land is sometimes collectively
referred to herein as the 

 

 

“Property”.

 

Section 1.12 Security. $36,174.33.

 

Section 1.13 Taxes Base Year. The New York
City fiscal Tax Year commencing on July 1, 2005 and ending on June 30,
2006.

 

Section 1.14 Tenant’s Share. 1.630%.

 

Section 1.15 Term. The period
commencing on June 1, 2005 (“Commencement Date”) and ending at 11:59 PM on
September 30, 2010 (“Fixed Expiration Date”), or the date this Lease is
earlier terminated (“Earlier Expiration Date”). Notwithstanding the foregoing,
Tenant may enter into the Premises prior to the Commencement Date for the sole
purpose of performing Tenant’s Work (as said term is hereinafter defined) in
order to prepare the Premises for occupancy by Tenant. Any entry by Tenant or
Tenant’s employees or contractors on the Premises prior to the Commencement
Date shall be deemed to be under and subject to all of the terms, covenants,
provisions and conditions of this Lease, except those provisions requiring the
payment of Fixed Rent (and without limiting the foregoing, any Alterations
proposed to be performed by Tenant in the Premises shall be subject to Tenant’s
compliance with all terms, covenants and conditions of Article 5 of this
Lease).

 

Section 1.16 Commencement Date Agreement. Landlord may
submit to Tenant a written agreement, substantially in the form annexed as Exhibit C,
confirming the date fixed by Landlord, in accordance with the provisions of
this Lease, as the Commencement Date and the Fixed Expiration Date and Tenant
shall execute such agreement and return it to Landlord within 15 calendar days
thereafter. Any failure of the parties to execute such written agreement shall
not affect the validity of the Commencement Date or the Fixed Expiration Date
as fixed and determined by Landlord as aforesaid

 

Section 1.17 Certain Definitions. Listed in
this Section is each defined term used in more than one Article, other
than the Basic Terms, and the Section in which it is defined. Any
reference in this Lease to (a) “legal action”, includes any suit,
proceeding or other legal or administrative process, (b) “person”,
includes any individual, entity or other party in question, and (c) “this
Lease”, includes Landlord’s Regulations and the Exhibits to this Lease.

 

	
   

  	
  Defined Term

  	
   

  	
   

  	
  Section

  
	
   

  	
  Authority

  	
   

  	
   

  	
  11.1

  
	
   

  	
  Default

  	
   

  	
   

  	
  18.1

  
	
   

  	
  Wage Rate

  	
   

  	
   

  	
  7.1(a)

  
	
   

  	
  Land

  	
   

  	
   

  	
  3.2

  
	
   

  	
  Laws

  	
   

  	
   

  	
  11.1

  
	
   

  	
  Mortgagee

  	
   

  	
   

  	
  12.1

  
	
   

  	
  Mortgages

  	
   

  	
   

  	
  12.1

  
	
   

  	
  Landlord’s Regulations

  	
   

  	
  3.4

  

 

 

	
   

  	
  Permitted Use

  	
   

  	
   

  	
  3.1

  
	
   

  	
  Rent

  	
   

  	
   

  	
  2.2

  
	
   

  	
  Superior Lease

  	
   

  	
   

  	
  12.1

  
	
   

  	
  Superior Landlord

  	
   

  	
   

  	
  12.1

  
	
   

  	
  Taxes

  	
   

  	
   

  	
  6.1

  
	
   

  	
  Tenant’s Property

  	
   

  	
   

  	
  5.3

  
	
   

  	
  Tenant’s Work

  	
   

  	
   

  	
  5.1

  
	
   

  	
  Unavoidable Events

  	
   

  	
   

  	
  23.11

  

 

Article 2.
Demise; Rent

 

Section 2.1 Landlord
hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises,
for the Term, at the Rent, and on the other terms of this Lease.

 

Section 2.2 Tenant shall pay to Landlord
Rent when due without notice, abatement, deduction, counterclaim, setoff or
defense for any reason whatsoever (except as otherwise expressly provided in
this Lease), in lawful money of the United States of America, by good and
sufficient check drawn to Landlord’s order on a bank or trust company with an
office in the Borough of Manhattan, the City of New York, State of New York or
another method approved by Landlord, at Landlord’s Notice Address or another
address Landlord designates, and as provided in this Lease. The Fixed Rent
shall be paid in equal monthly installments, in advance, on the first day of
each calendar month during the Term, except that Tenant shall not be required
to pay the Fixed Rent for the Fixed Rent Abatement Period, if any. If the
Commencement Date is not the first day of a month, the Fixed Rent for the month
in which the Commencement Date occurs shall be apportioned according to the
number of days in that month. All sums, other than the Fixed Rent, payable by
Tenant to Landlord under this Lease are considered additional rent (and the
Fixed Rent and all additional rent are collectively called “Rent”). Landlord’s
delay in rendering, or failure to render, any statement required to be rendered
by Landlord for any Rent for any period shall not waive Landlord’s right to
render a statement or collect that Rent for that or any subsequent period, nor
shall the rendering of an incorrect statement waive Landlord’s right to render
a corrected statement for that period and collect the correct amount of Rent.

 

Section 2.3 On the signing and delivery
of this Lease by Tenant, Tenant shall pay to Landlord: (i) one full
monthly installment of the Fixed Rent, to be applied to the first full monthly
installment of the Fixed Rent due under this Lease; and (ii) the Security
Deposit required under Article 22 of this Lease.

 

Section 2.4 If at any time during the
Term the Rent is not fully collectible by reason of a Law, Tenant shall enter
into such agreements and take such other action (without additional expense or
liability to Tenant) as Landlord reasonably requests and as may be permitted under
Law, to permit Landlord to collect the maximum Rent collectible under Law (but
not in excess of the Rent). On the termination of that Law prior to the
expiration of the Term (a) the Rent shall be paid in accordance with this
Lease, and (b) Tenant shall pay to Landlord, if permitted by Law, the Rent
which would have been paid but for that Law, less the Rent paid by Tenant to 

 

 

Landlord
during the period of that Law.

 

Section 2.5 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, Additional Rent or Rent, shall constitute rent for the purposes of section 502
(b) (7) of the Bankruptcy Code.

 

Article 3. Use

 

Section 3.1 Tenant shall use the
Premises only for offices and uses reasonably ancillary thereto (the “Permitted
Use”), subject to Section 3.2.

 

Section 3.2
Tenant shall not (a) use
any part of the Premises (i) in violation of this Lease, (ii) in any
manner which in Landlord’s reasonable judgment would adversely affect or cause
excessive use of the Building or any Building system or service, (iii) for
any of the following (or offices therefor): employment agency; government
office; airline office; charity, not-for-profit organization or other
organization dependent in whole or in part on charitable contributions; a place
of public assembly; the rendering of any health or health-related services; a
school or classroom; gambling; any business that, in Landlord’s reasonable
judgment, may jeopardize the safety of the Building or its occupants; or the
sale or preparation of any food or beverage (except for vending machines and
warming food, in both cases solely for Tenant’s employees), or (iv) in
violation of the certificate of occupancy for the Premises or the Building, (b) use
any area outside the Premises within or adjacent to the Building for the sale
or display of any merchandise, for solicitations or demonstrations or for any
other activity, (c) store trash other than inside the Premises, (d) cause
waste, or do anything which, in Landlord’s reasonable judgment, disturbs other
occupants of the Building or is obscene, pornographic or lewd, (e) permit
music or other sounds in the Premises to be heard outside the Premises, (f) permit
equipment in the Premises to cause vibration or noise to be transmitted outside
the Premises, (g) permit odors or fumes beyond the Premises, (h) permit
its employees, visitors or deliverymen to loiter immediately outside the
Premises or the Building, (i) place any sign or other item outside the
Premises or the Building, or on any window or door of the Premises, or in the
Premises if it can be seen from outside the Premises, except a Building
standard identification sign on Tenant’s entrance door, Building standard
window coverings or other sign or item permitted by the express provisions of
this Lease, (j) park trucks or other vehicles which interfere with any part of
the Building or the Land, (k) cause the release in or from the Premises of any hazardous
material, or any other item which is deemed hazardous under any Law, (l)
advertise in a manner which, in Landlord’s reasonable judgment, impairs the
reputation or desirability of the Building or (m) move any heavy or bulky items
into or out of the Building without Landlord’s consent, which shall not be
unreasonably withheld, delayed or conditioned (and (i) if any such item
requires special handling, Tenant shall employ only persons reasonably approved
by Landlord for that purpose and (ii) Landlord may inspect any items
brought into or taken from the Building).

 

Section 3.3 Landlord represents to
Tenant that the Premises are vacant as 

 

 

of the date of this Lease. If Landlord fails to give
Tenant possession of the Premises on the Target Commencement Date as the result
of a fire or other casualty, Landlord shall have no liability to Tenant and
this Lease shall remain in full force and effect according to its terms, but
the Term and the Rent shall not commence until the Commencement Date. This Section constitutes
an express provision to the contrary pursuant to Section 223-a of the New
York Real Property Law (or any similar Law), which Landlord and Tenant agree is
inapplicable to this Lease (and Tenant hereby waives any right to damages or to
rescind this Lease which Tenant might otherwise have under any such Law).

 

Section 3.4 Tenant shall comply with the
existing rules and regulations of the Building attached to this Lease as Exhibit E,
if any, and any future rules and regulations reasonably adopted by
Landlord in connection with the operation of, and construction work within, the
Building which do not materially and adversely affect Tenant’s rights under
this Lease (collectively, “Landlord’s Regulations”), notice of which shall be
given to Tenant. Landlord is not required to enforce Landlord’s Regulations or
any other lease and Landlord shall not be liable to Tenant for a violation of
Landlord’s Regulations or any other lease. Landlord’s failure to enforce
Landlord’s Regulations against Tenant or any other occupant of the Building
shall not be considered a waiver of Landlord’s Regulations.  Landlord shall not, however, enforce Landlord’s
Regulations against Tenant in a discriminatory manner. If there is any
inconsistency between this Lease and Landlord’s Regulations, this Lease shall
control.

 

Article 4. Condition of the Premises.

 

Section 4.1 Tenant has examined the
Premises and Tenant shall accept possession of the Premises in their “AS IS”
condition on the date of this Lease, subject to latent defects, normal wear and
tear and the removal of the existing occupant’s property, if any. Tenant
acknowledge s that Landlord has no obligation to perform any work, supply any
materials, incur any expenses or make any installations to prepare the Premises
for Tenant’s occupancy.

 

Section 4.2 If requested by Landlord or
Tenant, Landlord and Tenant shall, promptly sign and deliver a confirmation of
the Commencement Date, the Fixed Expiration Date and any other dates, but the
failure to do so shall not change those dates.

 

Article 5. Tenant’s Work

 

Section 5.1 Except as may be provided in
this Lease, Tenant shall not make any alterations or changes to the Premises,
the Building, the Building systems, or any part thereof (collectively, “Tenant’s
Work”), without Landlord’s consent. Landlord’s consent shall not be
unreasonably withheld, delayed or conditioned with regard to Tenant’s Work to
adapt the Premises from time to time for the Permitted Use provided that Tenant’s
Work (a) is nonstructural, (b) does not affect any part of the
Building outside of the Premises, or materially and adversely affect the
Building structure or the load-bearing ability of the Building, (c) does
not adversely affect the proper functioning of the Building Systems and does
not result in an increase in the use of such systems by Tenant beyond Tenant’s
allocable portion of the reserve capacity thereof, (d) require an

 

 

amendment of the
certificate of occupancy for the Building or the Premises, and (e) is
performed only by those contractors or subcontractors identified on Exhibit G
to this Lease or other contractors or subcontractors provided the same are
previously approved by Landlord in writing (which approval shall not be
unreasonably withheld, delayed or conditioned; except that any Tenant’s Work
which affects any Building system or service shall be performed by a contractor
or subcontractor which is either designated by Landlord, identified on Exhibit G
to this Lease, or identified in any other list of approved contractors and
subcontractors for that work promulgated by Landlord from time to time). Tenant’s
Work shall be performed, at Tenant’s expense, in a workerlike manner using new
materials of first class quality and in compliance with this Lease, all Laws
and Tenant’s Plans (as defined in Section 5.2). If Tenant’s Work consists
solely of the installation of Tenant’s Property in the Premises, a change
affecting only Tenant’s Property in the Premises or the painting, carpeting or
decorating of the Premises (collectively, “cosmetic alterations”), Landlord’s
consent shall not be required, provided (i) Tenant gives Landlord 10 days
prior notice thereof (with reasonable details of the work to be performed), (ii) all
of the other applicable provisions of this Lease shall apply and (iii) the
work does not violate clauses (a), (b) or (c) of this Section.
Notwithstanding the foregoing, Tenant’s failure to deliver notice of any
proposed cosmetic alterations shall not be deemed to constitute a Default under
this Lease provided Tenant otherwise complies with all other applicable
provisions of this Article.

 

Section 5.2 Prior to performing any
Tenant’s Work (other than any Tenant’s Work which pursuant to this Article does
not require Landlord’s consent), Tenant shall, at Tenant’s expense (a) deliver
to Landlord, detailed plans and specifications for Tenant’s Work (including,
without limitation, one set of mylar sepias and two sets of blue lines of
final, stamped and detailed plans and specifications (including layout,
architectural, electrical, mechanical and structural drawings) that comply with
all applicable Laws) for each proposed Alteration in form reasonably
satisfactory to Landlord prepared and certified by a registered architect or
licensed engineer, and suitable for filing with the applicable Authority, if
filing is required by Law (“Tenant’s Plans “), (b) obtain Landlord’s
approval of Tenant’s Plans (which shall not be unreasonably withheld, delayed
or conditioned to the extent Landlord’s consent to Tenant’s Work shown on
Tenant’s Plans is not to be unreasonably withheld, delayed or conditioned
pursuant to this Article, (c) obtain (and deliver to Landlord copies of)
all required authorizations of any Authority, (d) deliver to Landlord
certificates (in form reasonably acceptable to Landlord) of worker’s
compensation insurance (covering all persons to be employed by Tenant, and all
contractors and subcontractors performing any Tenant’s Work), commercial
general liability insurance (naming Landlord, Landlord’s managing agent, if
any, any Superior Landlord and any Mortgagee as additional insureds) and
Builder’s risk insurance (issued on a completed value basis), in form, with
companies, for periods and in amounts reasonably required by Landlord, naming
Landlord, Landlord’s Managing Agent, Landlord’s asset manager, if any, any
Superior Landlord and any Mortgagee as additional insureds, and (e) with
respect to any Tenant’s Work costing more than $50,000 (other than Tenant’s
Work which pursuant to this Article does not require Landlord’s consent),
deliver to Landlord security in an amount

 

 

equal to the total cost of such Tenant’s Work and
reasonably acceptable to Landlord securing Tenant’s obligation to complete and
pay for Tenant’s Work. If Landlord previously has provided Tenant or its
architect with base building plans on a CADD disk, Tenant shall also submit
Tenant’s Plans and any changes thereto by disk. Tenant shall promptly reimburse
Landlord for any reasonable out-of-pocket expenses incurred by Landlord in
connection with Landlord’s review of Tenant’s Plans and inspection of Tenant’s
Work, including, without limitation, outside experts retained by Landlord for
that purpose. Following the completion of Tenant’s Work, Tenant shall, at
Tenant’s expense, obtain and deliver to Landlord copies of all authorizations
of any Authority required upon the completion of Tenant’s Work and “as-built”
plans and specifications for Tenant’s Work prepared as reasonably required by
Landlord). In the case of Tenant’s Work which costs in excess of $25,000 (as
reasonably determined by Landlord), Tenant shall pay to the Manager a fee (the “Alteration
Fee”) equal to five (5%) percent of the cost thereof. Tenant thereof shall pay
such Alteration Fee or any portion to the Manager within 5 days after demand
therefor.

 

Section 5.3 Except as otherwise provided
herein, Tenant shall be permitted to perform Tenant’s Work during Business
Hours, provided that such work does not interfere with or interrupt the
operation and maintenance of the Building (as determined by Landlord) or
unreasonably interfere with or interrupt the use and occupancy of the Building
by any other tenants in the Building. Otherwise, Alterations shall be performed
at such times and in such manner as Landlord may from time to time reasonably
designate. If any portion of Tenant’s Work is required to be performed after
Business Hours, Tenant shall reimburse Landlord, upon demand, for all
additional costs and charges incurred by Land lord by reason thereof;
including, without limitation, any compensation paid to a supervisory engineer.

 

Section 5.4 All Tenant’s Work (other
than any portion of Tenant’s Work which consists of “Tenant’s Property”, as
said term is hereinafter defined) shall become a part of the Building and shall
be Landlord’s property from and after the installation thereof and may not be
removed or changed without Landlord’s consent. Notwithstanding the foregoing,
if, on or before the date Landlord approves Tenant’s Plans (or other
documentation) for such Tenant’s Work, Landlord notifies Tenant that Landlord is
reserving the right to require Tenant to remove

 

130565.3 8

 

those
elements of Tenant’s Work that exceed or are different than the customary
standard types of alterations for general, executive and administrative
business offices in the Borough of Manhattan, City and State of New York, then
Landlord prior to the Expiration Date, may require Tenant to remove such
specified elements of Tenant’s Work and to repair and restore in a good and
workmanlike manner to Building standard condition (reasonable wear and tear
excepted) any damage to the Premises or the Building caused by such removal.
Without limiting the foregoing provisions, upon the Expiration Date or the
earlier termination of the Term, Tenant shall remove all wiring and cabling
from the raceways and conduits located in the Premises. On or before the
Expiration Date, Tenant shall, at Tenant’s expense remove from the Premises and
the Building Tenant’s trade fixtures, equipment and personal property which are
removable

 

 

without
material damage to the Premises or the Building (“Tenant’s Property”). Any
Tenant’s Property or Tenant’s Work (which Tenant was required to remove) not
removed by Tenant by the Expiration Date shall be deemed abandoned and may, at
Landlord’s option, be retained as Landlord’s property or removed by Landlord at
Tenant’s expense. The provisions of this Section shall survive the
expiration or earlier termination of this Lease.

 

Section 5.5 If, in connection with
Tenant’s Work or any other act or omission of Tenant or Tenant’s employees,
agents or contractors, a mechanic’s lien, financing statement or other lien or
violation is filed against Landlord, or any part of the Premises, the Building
or Tenant’s Work, Tenant shall, at Tenant’s expense, discharge the same of
record within 20 days after Tenant receives notice of the filing; and Tenant
shall indemnify and hold Landlord harmless from and against any and all costs,
expenses, claims, losses or damages resulting therefrom by reason thereof.  If Tenant shall fail to discharge such mechanic’s
lien within the aforesaid period, then, in addition to any other right or
remedy of Landlord, Landlord may, but shall not be obligated to, discharge the
same either by paying the amount claimed to be due or by procuring the
discharge of such lien by deposit in court or bonding, and in any such event,
Landlord shall be entitled, if Landlord so elects, to compel the prosecution of
an action for the foreclosure of such mechanic’s lien by the lienor and to pay
the amount of the judgment, if any, in favor of the lienor, with interest,
costs and allowances. Any amount paid by Landlord for any of the aforesaid
charges and for all expenses of Landlord (including, but not limited to,
attorneys’ fees and disbursements) incurred in defending any such action, discharging
said lien or in procuring the discharge of said lien, with interest on all such
amounts at the maximum legal rate of interest then chargeable to Tenant from
the date of payment, shall be repaid by Tenant within ten (10) days after
written demand therefor, and all amounts so repayable, together with such
interest, shall be considered Additional Rent.

 

Section 5.6 Tenant shall not employ, or
permit the employment of, any contractor, subcontractor or other worker in the
Premises, whether in connection with Tenant’s Work or otherwise, if such
employment shall, in Landlord’s reasonable judgment, interfere or cause
conflict with other contractors, subcontractors or workers in the Building.

 

Section 5.7 At Tenant’s request,
Landlord shall join in any applications for any authorizations required from
any Authority in connection with Tenant’s Work (which has been approved by, or
does not require approval of, Landlord), and otherwise cooperate with Tenant in
connection with Tenant’s Work, but Landlord is not obligated to incur any
expense, obligation or liability in connection therewith.

 

Article 6. Real Estate Taxes

 

Section 6.1 The following defined terms
are used in this Article:

 

(a) Taxes. The aggregate of all real estate
taxes, assessments (special or otherwise), and other charges (including,
without limitation, business improvement district charges) of any Authority
assessed against all or any part of the Building or the Land. If at any time
the method of taxation is changed so that in lieu of, as an addition to

 

 

or as a substitute for all or any part of the real estate
taxes, assessments or charges assessed against all or any part of the Building
or the Land, there is assessed any other tax, assessment or charge including,
without limitation, any based on the rents received from the Building or the
Land, all such taxes, assessments, and charges shall be considered Taxes. Taxes
shall not, however, include any franchise, gift, inheritance, estate, sales,
transfer, general income or profit tax imposed on Landlo rd by any Authority
(unless same is considered part of Taxes pursuant to the preceding sentence).
If in any Tax Year (including, without limitation, the Taxes Base Year) there
is any abatement, exemption or discount of Taxes (or any assessment or rate
which comprises Taxes), the abatement, exemption or discount shall not be taken
into account, and Taxes shall be determined as if there were no abatement,
exemption or discount.

 

(b) Taxes Base Year. As defined in Article 1 of
this Lease.

 

(c) Tax
Year. The 12-month period ending June 30 (or such other period as may
be adopted by The City of New York as its fiscal year for Taxes).

 

(d)           Tax
Statement. A statement showing the calculation of Tenant’s Tax Payment.

 

(e)           Tenant’s Tax Payment. Tenant’s
Share of the excess of Taxes for any Tax Year over Taxes for the Taxes Base
Year.

 

Section 6.2 If Taxes for any Tax Year
any part or all of which falls within the Term exceed Taxes for the Taxes Base
Year for any reason, foreseen or unforeseen (including, without limitation,
increases in the tax rate or the assessed valuation of the Building or the Land
for any reason, including, without limitation, changes in the method of
assessment, reassessments occurring in the normal course or outside of the
normal course or increases in assessments by reason of improvements,
alterations or additions to the Building or the Land made by Tenant, other
tenants, or Landlord), Tenant shall pay to Landlord Tenant’s Tax Payment in the
manner hereinafter set forth. Tenant shall pay to Landlord Tenant’s Tax Payment
as reasonably estimated by Landlord in equal monthly or other periodic
installments, in advance, on the first day of each calendar month or other
period, so that on the date 30 days before the date Landlord is required (without
interest or penalty) to pay Taxes for any Tax Year or part of a Tax Year
Landlord shall have received from Tenant Tenant’s Tax Payment. If Landlord
requests or revises the monthly installments of Tenant’s Tax Payment following
the commencement of a Tax Year, Tenant shall (a) until a request is made,
pay the monthly installments of Tenant’s Tax Payment for the prior Tax Year and
(b) within 10 days following Tenant’s receipt of that request or revision,
pay the monthly installments of Tenant’s Tax Payment retroactive to the
beginning of that Tax Year to the extent they exceed the payments previously
made by Tenant for that Tax Year (or if they are less, Landlord shall credit
the difference against the next payments under this Article). If 30 days before
the date Landlord is required (without interest or penalty) to pay

 

130565.3 10

 

Taxes
the aggregate amount collected by Landlord from Tenant is not sufficient to pay
Tenant’s Tax Payment, Landlord shall give notice to Tenant, and Tenant shall
pay to 

 

 

Landlord
the deficiency within 10 days following Tenant’s receipt of Landlord’s
request.  If, however, the aggregate
amount collected by Landlord from Tenant is greater than Tenant’s Tax Payment,
Landlord shall credit the excess against Tenant’s next payments under this
Lease or, if any excess is due Tenant at the Expiration Date, Landlord shall
promptly pay that excess to Tenant. 
Except as aforesaid, Tenant shall pay the Tax Payment to Landlord within
10 days following Tenant’s receipt of the Tax Statement for that Tax Year. At
Tenant’s request, Landlord shall send to Tenant a copy of the relevant bill for
Taxes. If Taxes for any Tax Year are less than Taxes for the Taxes Base Year,
Tenant shall not be entitled to any payment or credit.

 

Section 6.3 Landlord may, at Landlord’s
option, institute proceedings to reduce Taxes. 
Tenant may not institute such proceedings. If Taxes for the Taxes Base
Year are reduced, Tenant’s Tax Payment for all Tax Years subsequent to the
Taxes Base Year shall be recomputed based on the reduced Taxes for the Taxes
Base Year, and Tenant shall pay to Landlord, within 10 days following receipt
of Landlord’s request, the deficiency between the amount paid by Tenant and the
amount due as a result of the recomputations. If Landlord receives a refund of
Taxes for any Tax Year for which Tenant made Tenant’s Tax Payment, Landlord
shall credit Tenant’s Share of the refund against Tenant’s next payments under
this Lease (or, if any refund is due Tenant at the Expiration Date, Landlord
shall promptly pay that refund to Tenant), after deducting from the refund any
reasonable expenses incurred by Landlord to obtain the refund which have not
been previously reimbursed to Landlord, but Tenant’s Share of the refund for
any Tax Year shall not exceed Tenant’s Tax Payment paid for that Tax Year.

 

Section 6.4 If the Expiration Date of
this Lease is a date other than the first or last day of a Tax Year, Tenant’s
Tax Payment for that Tax Year shall be apportioned according to the number of
days of that Tax Year within the Term. Tenant shall, to the extent not paid by
Tenant to Landlord as part of Taxes, pay to Landlord, within 10 days following
Tenant’s receipt of Landlord’s request, any occupancy, rent or other tax now or
hereafter imposed on Tenant which is collectible by Landlord, payable by
Landlord if not paid by Tenant or a lien on any part of the Building.

 

Section 6.5 Tenant shall pay to
Landlord, within 10 days following Tenant’s receipt of Landlord’s invoice,
Tenant’s Share of the reasonable expenses incurred to contest any Taxes
applicable to any part of the Term (prorated for any partial Tax Year within
the Term) which have not been previously reimbursed to Landlord.

 

Section 6.6 Intentionally Omitted.

 

Article 8. Electricity 

 

Section 8.1 Subject to the provisions of
this Article, Landlord shall provide not less than an average of 3.5 watts
(connected load) per usable square foot of electric current to the Premises
(exclusive of the Building’s HVAC system) through the existing electrical
system of the Building for Tenant’s for ordinary office lighting and normal
low-power office equipment.  Tenant shall
pay the Electric ity Charge (as said term is defined in Article 1 hereof),
in addition to the Fixed Rent, Additional Rent and all

 

 

other charges payable pursuant to this Lease, for
the cost of such electric service; which Electricity Charge is calculated at
the initial rate of $3.00 per rentable square foot (based on 3,935 rentable
square feet in the Premises) per annum, or $11,805.00. The Electricity Charge
shall be payable by Tenant in equal monthly installments of $983.75 due on the
first day of each and every month (subject to increase from time to time as
hereinafter set forth), which payments shall constitute Additional Rent
hereunder. Landlord shall not be liable to Tenant for any failure, defect or
interruption of electric service for any reason. Tenant’s use of electricity in
the Premises shall not at any time exceed the capacity of the electrical system
within or serving the Premises and Tenant shall not overload any component of
such system. Tenant shall, at Tenant’s expense, furnish and install all
lighting tubes, lamps, bulbs and ballasts required in the Premises. Landlord
shall select (and may from time to time change) the utility or other supplier
providing electricity to the Building and the Premises. Tenant shall comply
with all rules, regulations and other requirements of the utility or other
supplier.

 

Section 8.2 Landlord may, at any time,
cause Landlord’s electric consultant to survey the lighting and electrical
equipment in the Premises and to estimate the annual cost of the electrical
usage in the Premises (including, without limitation, the electrical usage of
all components of the Building’s heating, ventilating and air-conditioning
systems serving only the Premises), considering consumption, demand and all
other relevant factors and based on the electric rate schedule at which
Landlord purchases electricity for the Building, applied as if Tenant’s usage
were the only usage in the Building. If the annual cost estimated by Landlord’s
consultant exceeds the Electricity Charge then in effect, the Electricity
Charge shall be increased by the amount of such excess, effective as of the
date of the survey or, if performed in connection with Tenant’s initial
occupancy of the Premises, as of the Commencement Date. The amount of any
increase for the period from the effective date of the increase to the last day
of the month in which Tenant receives notice of the increase shall be paid within
10 days following Tenant’s receipt of Landlord’s statement. “Cost” as such term
is used in this Section 8.2 shall be deemed to include, without
limitation, all sales, use, excise or other taxes imposed in connection with
the furnishing of electricity to the Premises.

 

Section 8.3 If at any time the electric
rate schedule at which Landlord purchases electricity for the Building is
increased (including, without limitation, by reason of Landlord changing the
electricity supplier for the Building) or the cost of furnishing electricity to
Tenant is increased, Landlord may cause Landlord’s electric consultant to
estimate the resulting increase in Landlord’s annual cost to supply electricity
to Tenant and, effective on the date of the increase in the electric rate
schedule, the Electricity Charge shall be increased by the amount estimated.
The amount of the increase for the period from the effective date of the
increase to the last day of the month in which Tenant receives notice of the
increase shall be paid within 10 days following Tenant’s receipt of Landlord’s
statement. Under no circumstances shall the Electrical Charge ever be reduced
below $11,805.00 per annum.

 

Section 8.4 Any determination of
Landlord’s electric consultant under this Article shall be binding and
conclusive on Tenant unless within 60 days after Tenant’s receipt of the
determination Tenant notifies Landlord that Tenant disputes the

 

 

determination, identifies in Tenant’s notice Tenant’s
electric consultant and delivers to Landlord a copy of the electric consultant’s
determination. Tenant shall not, however, be permitted to dispute the
determinations of Landlord’s electric consultant if there is a Default.  If Landlord’s electric consultant and Tenant’s
electric consultant fail to agree on the determination in question within 30
days following Tenant’s notice, Landlord’s electric consultant and Tenant’s
electric

 

130565.3 12

 

consultant
shall, within 40 days following Tenant’s notice, designate an independent
electric consultant to select either the determination of Landlord’s electric
consultant or the determination of Tenant’s electric consultant, whichever the
independent electric consultant believes is more accurate.  The independent electric consultant must be a
person having not less than 10 years’ experience as an electric consultant in
commercial office buildings in the City of New York. If the independent
electric consultant is not designated within 10 days, the independent electric
consultant shall be designated by the President of the Real Estate Board of New
York, Inc. at the request of either Landlord or Tenant. The determination
of the independent electric consultant shall be binding and conclusive on
Landlord and Tenant.  Landlord and Tenant
shall each pay their own expenses of this procedure, except the fees and
expenses of the independent electric consultant shall be paid 50 percent by
Landlord and 50 percent by Tenant. Pending the resolution of any dispute,
Tenant shall pay to Landlord any increase in the Electricity Charge and the
Fixed Rent determined by Landlord’s electric consultant. If it is determined
that the increase is less than the increase determined by Landlord’s electric
consultant, Landlord shall credit the overpayment against the Tenant’s next
payments under this Lease or if any overpayment is due Tenant at the Expiration
Date, Landlord shall promptly pay that overpayment to Tenant. In no event,
however, is the originally specified Electricity Charge ever to be reduced
below $11,805.00 per annum.

 

Section 8.5 Landlord may at any time, by
notice to Tenant, elect to submeter the electricity provided to the Premises
(including, without limitation, the electrical usage of all components of the
Building’s heating, ventilating and air-conditioning systems serving only the Premises).
If Landlord gives that notice this Lease shall continue in full force and
effect unaffected thereby, except that (a) Landlord shall, at Tenant’s
expense, furnish, install and maintain any submeter and other equipment in
order for Tenant’s electricity to be separately measured, and (b) from and
after the date the submeter and equipment are placed in service (i) the
Electricity Charge and the Fixed Rent shall be reduced by the Electricity
Charge then in effect and (ii) Tenant shall pay to Landlord for Tenant’s
electricity usage, for any submeter billing period, within 10 days following
Tenant’s receipt of Landlord’s statement, the sum of (A) an amount
determined by applying Tenant’s consumption of and demand for electricity as
measured by the submeter to the rate schedule pursuant to which Landlord
purchases electricity for the Building (“Base Electric Charge”), and (B) Landlord’s
administrative charge for overhead and supervision equal to 5% of the Base
Electric Charge (not to exceed, however, any limitation imposed on that charge
by any Law); provided, however, that if the submeter does not measure demand
for electricity then the Base Electric Charge shall be equal to the product of
Tenant’s consumption of electricity as measured by the submeter multiplied by
the average cost (including, without limitation, consumption-related

 

 

and demand-related charges) of the electricity
purchased by Landlord for the utility billing period most closely corresponding
to the submeter billing period. If more than one submeter measures Tenant’s
electricity, the electricity supplied through each submeter may be computed and
billed separately in accordance with this Section.

 

Section 8.6 Landlord may at any time, by
notice to Tenant, elect to discontinue providing electricity to the Premises
(including, without limitation, the electricity for all components of the
Building’s heating, ventilating and air-conditioning systems serving only the
Premises). If Landlord gives that notice this Lease shall continue in full force
and effect unaffected thereby, except that (a) Tenant shall, at Tenant’s
expense, diligently arrange to obtain electricity from the utility or other
supplier providing electricity to the Building by means of the

 

130565.3 13

 

existing
Building electrical system to the extent it is available, suitable and safe for
such purpose, as reasonably determined by Landlord, (b) Landlord shall, at
Landlord’s expense, furnish and install any additional equipment (including any
meters) required in order for Tenant to obtain electricity directly from the
utility or other supplier, and (c) from and after the date Tenant receives
electricity from the utility or other supplier, Landlord shall not be required
to provide electricity to the Premises and the Electricity Charge and the Fixed
Rent shall be reduced by the Electricity Charge then in effect.

 

Section 8.7 If any tax or other charge
is imposed on Landlord’s receipt of Rent under this Article, Tenant shall pay
such tax or other charge to La ndlord within 10 days following receipt of
Landlord’s statement, and Landlord shall remit same to the appropriate
Authority.

 

Section 8.8 Landlord and Tenant shall
sign, acknowledge and deliver to each other an agreement in such form as
Landlord reasonably requires to reflect each change in the Electricity Charge
and the Fixed Rent under this Article, but no delay or failure to do so shall
change the effective date of the increase.

 

Article 9. Services

 

Section 9.1 Elevators . Landlord
shall (unless the Premises are on street level) provide (a) nonexclusive
passenger elevator service on all days, excluding Saturdays, Sundays, and all
holidays observed by the State of New York, the Federal Government or the labor
unions servicing the Building (“Business Days”), from 8:00 a.m. to 6:00 p.m.
(“Business Hours”), (b) at least one passenger elevator at all other times
and (c) a nonexclusive freight elevator on Business Days from 9:00 a.m.
to 12 noon and from 1:00 p.m. to 5:00 p.m. Landlord may change the
manner of operation of any of the elevators.

 

Section 9.2 Heat, Ventilation and Air Conditioning.
Landlord shall provide to the Premises through the existing Building
system, when and as required for the comfortable occupancy of the Premises (as
reasonably determined by Landlord), heat, ventilation and air conditioning (“HVAC”),
on Business Days during Business Hours. 

 

 

Landlord makes no
representation and shall have no obligation or liability with respect to the
performance of the Building HVAC system by reason of (a) the use of the
Premises, or any part thereof, in a manner exceeding the design criteria of the
system, (b) the arrangement of any partitioning or the ceiling
distribution system which interferes with normal operation of the system, (c) the
use of any machines or equipment, except for ordinary office equipment which
does not produce excess heat, (d) Tenant’s failure to comply with this
Lease which affects the performance of the system, (e) Tenant’s Work, (f) any
other act of Tenant or Tenant’s employees or contractors, or (g) any Law.
Landlord will not be responsible for the failure of the Building HVAC system if
such failure results from the occupancy of the Premises by more than an average
of one person for each one hundred (100) square feet in any separate room or
area or if Tenant shall install and operate machines, incandescent lighting and
appliances the total connected electrical load of which exceeds 3.5 watts per
square foot of usable area in any separate room or area. If Tenant shall occupy
the Premises at an occupancy rate of greater than that for which the Building
HVAC system was designed, or if the total connected electrical load shall
exceed 3.5 watts per square foot of usable area, or if Tenant’s partitions
shall be arranged in such a way as to interfere with the normal operation of
the Building HVAC system, Landlord may elect to make changes to the Building
HVAC system or the ducts through which it operates required by reason thereof,
and the cost thereof shall be reimbursed by Tenant to Landlord, as Additional
Rent, within 10 days after presentation of a bill therefor.  Landlord, throughout the Term, shall have
free access to all mechanical installations of Landlord, including but not
limited to air cooling, fan, ventilating and machine rooms and electrical
closets, and Tenant shall not construct partitions or other obstructions that
may interfere with Landlord’s free access thereto, or interfere with the moving
of Landlord’s equipment to and from the enclosures containing said
installations. Tenant shall not at any time enter the said enclosures or tamper
with, adjust, touch or otherwise in any manner affect said mechanical
installations. Landlord’s obligations under this Section are subject to
applicable Laws that may limit the hours or the extent to which Landlord is
permitted to supply HVAC.

 

Section 9.3 Cleaning. Provided
Tenant shall keep the Premises in good order and repair. Landlord, at Landlord’s
expense, shall cause the Premises, excluding any portions thereof used as
security areas or used for the storage, preparation, service or consumption of
food or beverages, to be cleaned (unless the Premises are on street level)
after Business Hours on every Business Day in accordance with the cleaning
specifications annexed to this Lease as Exhibit D. 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 (i) to the extent that the same, in any one day, exceeds the
average daily amount of refuse and rubbish usually attendant upon the use of
such Premises as offices, as described and included in Landlord’s cleaning
contract for the Building or recommended by Landlord’s cleaning contractor, and
(ii) related to or deriving from the preparation or consumption of food or
drink. Landlord shall render bills for the same to Tenant at such time as
Landlord may elect and shall be due and payable

 

 

as Additional Rent within 10 days after the time
rendered. Tenant 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 reasonably satisfactory to Landlord through Landlord’s cleaning
contractor, and to be treated against infestation by vermin, rodents or
roaches, whenever there is evidence of any infestation. Additionally, if the
Demised Premises includes a kitchen or a warming pantry, Tenant, at Tenant’s
expense, shall cause the Premises to be exterminated monthly (or more often as
required) by an exterminator designated by Landlord; and Tenant shall not
permit any person to enter the Premises or the Building for the purpose of
providing extermination services, unless Landlord has approved such persons in
advance. If so requested by Landlord, Tenant, at Tenant’s expense, shall store
any refuse generated by the consumption of food or beverages on the Premises in
a cold box or similar facility. Landlord shall have no obligation to clean,
repair, replace or maintain any “private” plumbing fixtures or facilities
(i.e., plumbing fixtures and facilities other than those that would be the
common toilets in a multi-tenant floor) or the rooms in which they are located.
Tenant shall sort, separate and recycle all refuse and rubbish of Tenant in
accordance with the methods and procedures set forth, from time to time, by
Landlord and as may be required by any applicable Laws.

 

Section 9.4 Water; Lavatories. Landlord
shall provide to the Premises domestic water for ordinary drinking, pantry and
lavatory purposes. If Tenant requires excessive or unusual quantities of
domestic water for any other purpose, and domestic water is available for that
purpose from the existing Building system, Landlord shall provide that domestic
water,

 

130565.3 15

 

but
may install a domestic water meter to measure Tenant’s consumption, in which
event Tenant shall (a) pay to Land lord the cost of the meters and their
installation, (b) at Tenant’s expense, keep the meters in good working
order and repair, and (c) pay to Landlord, within 10 days following Tenant’s
receipt of a bill, the cost incurred by Landlord to supply water (or only
domestic water, as the case may be) to the Premises as measured by the domestic
water meter (including, without limitation, any sales or other taxes).

 

Section 9.5 Access. Tenant shall
have access to the Premises 24 hours each day, seven days each week pursuant to
a system established by Landlord (but Landlord shall have no obligation or
liability to Tenant or otherwise to remove any snow, ice or other obstructions
except on Business Days during Building Hours). Landlord may exclude from the
Building (a) any employee of Tenant not presenting a pass to the Building
authorized by Landlord and (b) any visitor of Tenant who is not on a list
provided to Landlord by Tenant or otherwise authorized by Tenant to enter the
Building pursuant to procedures established by Land lord.

 

Section 9.6 Directory Listing. Landlord
shall list Tenant’s name on the Building’s main tenant directory. Tenant shall
pay to list the names of any subtenants and for any other changes in the
directory listings. The listing of any other name on the door of the Premises,
the Building directory, or otherwise, shall not vest in that person any

 

 

right or interest in this Lease or in the Premises,
nor shall it be considered Landlord’s consent to any assignment of this Lease
or any sublease or occupancy of the Premises.

 

Section 9.7 Overtime, Extra or Outside Services. The Rent does
not reflect or include any charge to Tenant for the furnishing of any necessary
freight elevator facilities or HVAC to the Premises during periods (“Overtime
Periods”) other than on Business Days during Operating Hours. Accordingly, if
Landlord furnishes any such freight elevator facilities or HVAC to the Premises
at the request of Tenant during Overtime Periods, Tenant shall pay Landlord
Additional Rent for such services at the standard rates then fixed by Landlord
for the Building or if no such rates are then fixed, at comparable rates then
being charged by comparable office buildings in the Borough of Manhattan, the
City and State of New York. Landlord shall not be required to furnish any such
services during any Overtime Periods unless Landlord has received at least 24
hour advance notice from Tenant requesting such services, which notice must be
given on the Business Day immediately preceding the day upon which such
services are needed by Tenant. If Tenant shall fail to give Landlord such
advance notice, then Landlord shall have no liability whatsoever to Tenant, for
any annoyance or inconvenience, or any injury from interruption of Tenant’s
business or otherwise, for so failing to furnish any such services during such
Overtime Periods. Any such failure, whether or not notice shall have been
given, and whether or not in Overtime Periods, shall not, in any event, 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. Notwithstanding any other provision of this Section 9.7
to the contrary, Landlord shall provide to Tenant up to four (4) consecutive
hours of overtime freight elevator use without charge in connection with Tenant’s
initial occupancy of the Premises.

 

Section 9.8 No Warranty by Landlord. Landlord
shall have no obligation to provide to Tenant or the Premises any services
except as specifically set forth in this Lease. Landlord does not warrant that
any Building system or service to be provided by Landlord, or any other systems
or services that Landlord may provide (a) shall be adequate for Tenant’s
particular purposes or (b) shall be free from interruption or
reduction.  Building systems and
services, including, without limitation, access, may be interrupted or reduced
by reason of Laws, repairs or changes which are, in Landlord’s judgment,
necessary or desirable, or Unavoidable Events, in which event such interruption
or reduction shall not, unless otherwise provided in this Lease (i) constitute
an actual or constructive eviction, or disturbance of Tenant’s use of the Premises,
(ii) entitle Tenant to any compensation or abatement of the Rent, (iii) relieve
Tenant from any obligation under this Lease, or (iv) impose any obligation
or liability on Landlord by reason of inconvenience or annoyance to Tenant,
injury to or interruption of Tenant’s business, or otherwise.

 

Article 10.Repairs

 

Section 10.1 Landlord shall, at Landlord’s
expense, maintain and repair the Building, the Land and the Building systems,
except to the extent of Tenant’s

 

 

responsibility set forth in this Article.

 

Section 10.2
Tenant shall, at
Tenant’s expense, subject to the provisions of this Lease, including, without
limitation, Article 5, as if part of Tenant’s Work, maintain and repair
the Premises (including, without limitation, any lavatories within the
Premises) and all Building systems within and serving only the Premises subject
to reasonable wear and tear of damage for which Tenant is not responsible
pursuant to this Lease.  If the Premises
are on street level, Tenant shall, at Tenant’s expense (a) maintain and
repair the sidewalks abutting the Premises and (b) keep those sidewalks
free of rubbish, snow, ice and other obstructions, and otherwise in a safe and
clean condition, subject to reasonable wear and tear and damage for which
Tenant is not responsible pursuant to this Lease. Subject to the provisions of Article 16,
all damage to the Building, the Land or the Building systems resulting from any
act or omission of Tenant or Tenant’s employees or contractors, shall be
repaired, at Tenant’s expense, by Tenant to the reasonable satisfaction of
Landlord or, at Landlord’s option, by Landlord. Tenant shall give prompt notice
to Landlord if any portion of the Premises or the Building systems within the
Premises requires repair. Tenant shall, at Tenant’s expense, cause vermin
within the Premises to be exterminated (as reasonably required by Landlord).
Notwithstanding the foregoing, provided Tenant’s intentional or negligent
actions or omissions have not resulted in the need for repairs to the Premises,
Tenant’s responsibility for the cost to repair any portion of the Premises the
cost of which exceeds $50,000 shall be limited, in any single calendar year (or
portion thereof) during the Term of this Lease, to the payment of the annual
amortized cost of such repair over the useful life of such repair (as
determined by Landlord in the exercise of its sole discretion, exercised
reasonably).

 

Section 10.3 Tenant shall not place a
load upon any floor of the Premises that exceeds the switch load made available
for the Premises. Tenant shall not locate or move any safe, heavy machinery,
heavy equipment, business machines, freight, bulky matter or fixtures into or
out of the Building without Landlord’s prior consent, which consent shall not
be unreasonably withheld, and Tenant shall make payment to Landlord of Landlord’s
costs in connection therewith. If such safe, machinery, equipment, freight,
bulky matter or fixture requires special handling (as reasonably determined by
Landlord), Tenant shall employ only persons holding a Master Rigger’s license
to do said work. All work in connection therewith shall comply with all
applicable Laws, and shall be done during such hours as Landlord may 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.

 

Section 10.4 Landlord shall operate,
maintain and make all necessary repairs (both structural and non-structural) to
the Building systems and the public portions of the Building, both exterior and
interior, in conformance with standards applicable to similar office buildings
in Manhattan, except for those repairs for which Tenant is responsible pursuant
to any other provision of this Lease. Landlord shall use reasonable efforts to
minimize interference with Tenant’s use and occupancy of the Premises in making
any repairs, alterations, additions or improvements; 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 in connection with such repairs, alterations,
additions or improvements. 
Notwithstanding the foregoing, if Tenant shall so request, Landlord
shall employ contractors or labor at so-called overtime or other premium pay
rates or incur other overtime costs in making such repairs, alterations,
additions or improvements, provided Tenant shall pay to Landlord, as Additional
Rent, within 10 days after demand therefor, an amount equal to the excess costs
incurred by Landlord by reason of compliance with Tenant’s request. 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 its
fixtures, appurtenances or equipment.

 

Section 10.5 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.

 

Section 10.6 Landlord shall have no
liability to Tenant, there shall be no abatement of the Rent and there shall
not be deemed to be any actual or constructive eviction of Tenant arising from
Landlord performing any repairs or other work to any portion of the Building,
the Premises, or the Building systems, including, without limitation, by reason
of any inconvenience, annoyance or injury to Tenant’s business.

 

Article 11.Laws

 

Section 11.1 Tenant shall, at Tenant’s
expense, subject to the provisions of this Lease, including, without
limitation, Article 5, as if part of Tenant’s Work, comply with all
present and future laws, rules, regulations, orders, ordinances, judgments,
requirements and (if Landlord adopts same) recommendations (collectively, “Laws”),
of the United States of America, the State of New York, the City of New York or
any present or future subdivision, court, agency, department, commission,
board, bureau or instrumentality thereof, and any fire insurance rating body
(collectively, “Authority”) applicable to Tenant’s occupancy of the Premises,
Tenant’s Work, Tenant’s Property or the Premises. Without limiting the generality
of the foregoing, Tenant shall, at Tenant’s sole cost and expense, take all
action, including the performance of any Tenant’s Work necessary to comply with
the applicable provisions of Local Laws No. 5 of 1973, No. 16 of
1984, No. 76 of 1985, No. 58 of 1987 and the Americans With
Disabilities Act of 1990 (the “ADA”), each as modified and supplemented from
time to time) which shall impose any violation, order or duty upon Landlord or
Tenant arising from, or in connection with, the Premises, Tenant’s occupancy,
use or manner of use of the Premises (including, without limitation, any
occupancy, use or manner of use that constitutes a “place of public
accommodation” under the ADA), or any installations in the Premises, or
required by reason of a breach of any of Tenant’s covenants or agreements under
this Lease, whether or not such Laws shall now be in effect or hereafter
enacted or issued, and

 

 

whether or not any work required shall be ordinary
or extraordinary or foreseen or unforeseen at the date hereof.

 

Section 11.2 If Tenant’s compliance with
applicable Laws requires structural work to the Premises or the Building
systems within and serving only the Premises, Tenant shall comply, at Tenant’s
expense, only if the obligation to comply arises from any of the following:
(i) any cause or condition arising out of any Tenant’s Work or
installations in the Premises (whether made by Tenant or by Landlord on behalf
of Tenant), or (ii) Tenant’s particular use, manner of use or occupancy on
behalf of Tenant of the Premises (as opposed to mere office use), or
(iii) any breach of any of Tenant’s covenants or agreements under this
Lease, or (iv) any wrongful act or omission by Tenant, or
(v) Tenant’s use or manner of use or occupancy of the Premises as a “place
of public accommodation” within the meaning of the ADA, in which event Tenant’s
obligation to perform any Alteration by reason of this clause (v) shall
apply only to the Premises. If any of the foregoing requires work outside the
Premises serving areas outside the Premises, Tenant shall cease that manner of
using the Premises or, at Landlord’s option, Landlord may perform that work, at
Tenant’s expense, to be paid within 10 days following Tenant’s receipt of a
bill therefor.

 

Section 11.3
Without limiting
any provision of this Article, Tenant covenants and agrees that Tenant shall,
at Tenant’s sole cost and expense, comply at all times with all Laws governing
the use, generation, storage, treatment and/or disposal of any Hazardous
Materials (as defined below), the presence of which results from or in
connection with the act or omission of Tenant or the breach of this Lease by
Tenant. The term “Hazardous Materials” shall mean any biologically or
chemically active or other toxic or hazardous wastes, pollutants or substances,
including, without limitation, asbestos, PCBs, petroleum products and
by-products, substances defined or listed as “hazardous substances” or “toxic
substances” or similarly identified in or pursuant to the Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601
et seq., and as hazardous wastes under the Resource Conservation and Recovery
Act, 42 U.S.C. § 6010, et seq., any chemical substance or mixture
regulated under the Toxic Substance Control Act of 1976, as amended, 15 U.S.C. § 2601,
et seq., any “toxic pollutant” under the Clean Water Act, 33 U.S.C. § 466
et seq., as amended, any hazardous air pollutant under the Clean Air Act, 42
U.S.C. § 7401 et seq., hazardous materials identified in or pursuant to
the Hazardous Materials Transportation Act, 49 U.S.C. § 1802, et seq., and
any hazardous or toxic substances or pollutant regulated under any other
Requirements. Tenant shall agree to execute, from time to time, at Landlord’s
request, affidavits, representations and the like concerning Tenant’s best
knowledge and belief regarding the presence of Hazardous Materials in, on,
under or about the Premises, the Building or the Land. Tenant shall indemnify
and hold harmless Landlord and any mortgagee from and against any loss, cost,
damage, liability or expense (including attorneys’ fees and disbursements)
arising by reason of any clean up, removal, remediation, detoxification action
or any other activity required or recommended of any Landlord or any mortgagee
by any Authority by reason of the presence in or about the Building or the
Premises of any Hazardous Materials, as a result of or in connection with the
act or

 

 

130565.3 19

 

omission
of Tenant or the breach of this Lease by Tenant. The foregoing covenants and indemnity
shall survive the expiration or any termination of this Lease.

 

Section 11.4 Tenant shall promptly
deliver to Landlord a copy of any communication or other materials relating to
the Premises, the Building, the Building systems, Tenant’s Property or Tenant’s
Work received by Tenant from, or sent by Tenant to, any Authority.

 

Article 12.Subordination; Estoppel Certificates

 

Section 12.1 This Lease, and the rights
of Tenant under this Lease, are subject and subordinate in all respects to all
present and future underlying leases of the Building, including, without
limitation, all renewals, extensions, modifications and replacements thereof (“Superior
Leases”) and all present and future mortgages on any Superior Lease or on the
Building, including, without limitation, all renewals, extensions, supplements,
modifications, consolidations and replacements thereof (“Mortgages”), and all
advances under any Mortgage. This Section is self-operative and no further
instrument of subordination is required. 
In confirmation of the subordination, Tenant shall, within 10 days
following receipt of Landlord’s request, sign, acknowledge and deliver a
subordination non-disturbance and attornment agreement or any other instrument
that Landlord, any landlord under a Superior Lease (“Superior Landlord”) or,
any mortgagee under a Mortgage (“Mortgagee”) may request to evidence the
subordination; and if Tenant fails to execute, acknowledge or deliver any such
instrument within 5 days after Landlord’s request therefor, Tenant hereby
irrevocably constitutes and appoints Landlord as Tenant’s attorney-in-fact,
coupled with an interest, to execute, acknowledge and deliver any such
instrument for and on behalf of Tenant.

 

Section 12.2 If any act or omission of
Landlord gives Tenant the right, immediately or after a period of time, to
terminate this Lease or to claim a partial or total eviction, Tenant shall not
exercise that right until Tenant gives notice of said act or omission to each
Mortgagee and Superior Landlord whose name and address has been provided to
Tenant in writing, and until Mortgagee or such Superior Landlord shall have had
the opportunity to cure such default within 60 days after receipt of such
notice; or, in the event such cure (a) requires more than 60 days to
effect or (b) requires that Mortgagee or such Superior Landlord acquire
title to the Property, then within a reasonable time after such time period or
after Mortgagee or such Superior Landlord acquires title to the Property, as
the case may be, provided Mortgagee or such Superior Landlord proceeds
diligently to effect such cure or acquire such title.  Notices required to be delivered by Tenant
under this Section shall be delivered as follows:

 

c/o Allstate Investments,
LLC Allstate Plaza South, Suite

 G5C 3075 Sanders Road
Northbrook, Illinois 60062-7127 

Attention: Commercial
Mortgage Loan Service Manager

 

with
a copy to:

 

c/o
Allstate Investments,

LLC
Allstate Plaza

South,
Suite G5A 3075

Sanders
Road

Northbrook,
Illinois

60062-7127
Attention:

Investment
Law

Division

 

Landlord may change by written notice to Tenant the
names and addresses of the parties to whom notice shall be delivered under this
Section.

 

Section 12.3 If any Mortgagee or any
Superior Landlord (or a designee or successor thereof) succeeds to the rights
of Landlord under this Lease through a foreclosure or sale of the Property,
this Lease shall, at the sole option of such Mortgagee or Superior Landlord,
continue in full force and effect; and Tenant shall, upon the request of
Mortgagee or such Superior Landlord, attorn to and recognize Mortgagee or such
Superior Landlord (or its designee or successor) as Tenant’s landlord under
this Lease; and Tenant shall, within 10 days following Tenant’s receipt of a
request from such successor, sign, acknowledge and deliver any instrument that
Mortgagee, such Superior Landlord (or its designee or successor) reasonably
requests to evidence Tenant’s attornment. Upon such attornment, this Lease
shall continue in full force and effect as a direct lease between the
Mortgagee, Superior Landlord (or its designee or successor) and Tenant on all
of the terms of this Lease, except that Mortgagee, Superior Landlord (or its
designee or successor) shall not be (a) liable for any breach of a
covenant contained in the Lease that occurred before such party acquired its
interest in the Property or liable for any continuing breach of any such
covenant, except to the extent such breach continues to occur after such
acquisition, and Mortgagee, Superior Landlord (or its designee or successor, as
applicable), has received at least thirty (30) days’ prior written notice
thereof and the right to cure such breach, (b) bound by any obligation to
make any payment to Tenant or to grant any offset, abatement or credit to
Tenant, (c) bound by any modification of this Lease made after the date of
the Mortgage or the Superior Landlord in question, or by any prepayment of rent
allocable to the period after such foreclosure sale and paid more than 60 days
in advance of its due date, unless the modification or prepayment has been
approved in writing by the Mortgagee or the Superior Landlord in question, (d) required
to perform any work in the Premises or incur any costs to repair any damage
caused by a fire, other casualty or condemnation in excess of the insurance
proceeds or condemnation award, (e) be subordinated to any lien or charge
other than the lien of the existing Mortgage or Superior Lease, or be required
to depend in any manner upon property not subject to the lien of this
instrument; or (f) liable for the return of any Security Deposits held by
Landlord which were not actually received by Mortgagee, a Superior Landlord (or
its designee or successor).

 

Section 12.4
If any Mortgagee or Superior Landlord requires any

 

 

modifications of this Lease, or that any Mortgage or
Superior Lease be subordinate to this Lease, Tenant shall, within 10 days
following Tenant’s receipt of a request, sign, acknowledge and deliver to
Landlord instruments in form and substance reasonably requested by Landlord
providing for those modifications (provided they do not materially adversely
affect Tenant) or that subordination.

 

Section 12.5 Tenant shall, at any time and from time
to time, within 10 days following Tenant’s receipt of Landlord’s request, sign,
acknowledge and deliver to Landlord or any other person designated by Landlord
a certification (an “Estoppel Certificate”) stating: (a) that this Lease
is in full force and effect and has not been modified (or, if modified, setting
forth all modifications), (b) the date to which the Rent has been paid, (c) stating
whether or not, to the

 

130565.3 21

 

best
of Tenant’s knowledge, there is a Default or any event has occurred which, with
the serving of notice or the passage of time, or both, would give rise to a
Default, or if Landlord is in default under the Lease, and if so, setting forth
the specific nature of same, and (d) to the best of Tenant’s knowledge,
any other factual matters reasonably requested by Landlord or any person
designated by Landlord. A form of the foregoing Estoppel Certificate is
appended to this Lease as Exhibit I. Any Estoppel Certificate delivered
pursuant to this Section may be relied upon by Landlord or any other
person designated by Landlord. The failure of Tenant to execute, acknowledge
and deliver to Landlord an Estoppel Certificate in accordance with the
provisions of this Section 12.5 within said 10 day period shall constitute
an acknowledgment by Tenant, which may be relied on by any person who would be
entitled to rely upon any such Estoppel Certificate, that such Estoppel
Certificate as submitted by Landlord is true and correct; in the alternative,
Tenant hereby irrevocably constitutes and appoints Landlord as Tenant’s
attorney-in-fact, coupled with an interest, to execute, acknowledge and deliver
any such Estoppel Certificate for and on behalf of Tenant.

 

Article 13.Insurance

 

Section 13.1
Tenant will secure and maintain, at Tenant’s expense:

 

(a) All risk property insurance (including extra expense
insurance) on all of Tenant’s fixtures and personal property in the Premises,
and on any alterations, additions or improvements which Landlord requires
Tenant to insure in accordance with Article 5, all for the full
replacement cost thereof. Tenant will use the proceeds from such insurance for
the replacement of fixtures and personal property and for the restoration of
any such alterations, additions or improvements as set forth in Articles 16 and
17. Landlord will be named as loss payee as respects its interest in any such
alterations, additions, or other improvements.

(b) Business income insurance with limits not less than
Tenant’s 100% gross revenue for a period of 12 months.

(c) Workers compensation and employers liability
insurance.  Workers compensation
insurance in statutory limits will be provided for all employees. The employers
liability

 

 

insurance will afford limits not less than $500,000 per
accident, $500,000 per employee for bodily injury by disease, and $500,000
policy limit for bodily injury by disease.

(d) Commercial general liability insurance which insures
against claims for bodily injury, personal injury, advertising injury, and
property damage based upon, involving, or arising out of the use, occupancy, or
maintenance of the Premises and the Building Such insurance will afford, at a
minimum, the following limits:

 

Each
Occurrence $1,000,000 General Aggregate $2,000,000 Products/Completed
Operations $2,000,000 Aggregate Personal and Advertising Injury $1,000,000
Liability Fire Damage Legal Liability $50,000 Medical Payments $5,000 Any
general aggregate limit will apply on a per-location basis to the extent of the
minimum coverages hereinabove set forth.

 

Such insurance will name Landlord, its trustees and
beneficiaries, Landlord’s mortgagees, Landlord’s managing agent, Landlord’s
advisor, and their respective officers, directors, agents and employees, as
additional insureds (the “Required Additional Insureds”).

 

(e) This coverage must include blanket contractual
liability, broad form property damage liability, and must contain an exception
to any pollution exclusion (other than mold) that insures damage or injury
arising out of heat, smoke, or fumes from a ho stile fire.  Such insurance must be written on an
occurrence basis and contain a standard separation of insureds provision.

(f) Business auto liability that insures against bodily
injury and property damage claims arising out of the ownership, maintenance, or
use of “any auto.”  A minimum of a
$1,000,000.00 combined single limit per accident will apply.

(g) Umbrella excess liability insurance, on an
occurrence basis, that applies excess of required commercial general liability,
business auto liability, and employers liability policies, which insures
against bodily injury, property damage, personal injury and advertising injury
claims with the following minimum limits:

 

Each
Occurrence $5,000,000

Annual Aggregate $5,000,000

 

These limits must be in addition to and not
including those stated for underlying commercial general liability, business
auto liability, and employers liability insurance. Such policy must name the
Required Additional Insureds as additional insureds.

 

Section 13.2
All policies required to be carried by Tenant hereunder must be issued
by and binding upon an insurance company licensed to do business in the state
in which the property is located with a rating of at least “A” “XII” or better
as set forth in the most current issue of Best’s Key Rating Guide, unless
otherwise approved by Landlord.  Tenant
will not do or permit anything to be done that would invalidate the insurance
policies required.

 

 

(a) Liability insurance maintained by Tenant will be
primary coverage without right of contribution by any similar insurance that
may be maintained by Landlord.

(b) Certificates of insurance, acceptable to
Landlord, evidencing the existence and amount of each liability insurance
policy required hereunder and Evidence of Property Insurance Form, Acord 27,
evidencing property insurance as required will be delivered to Landlord prior
to delivery or possession of the Premises and ten days prior to each renewal
date. Certificates of insurance will include an endorsement for each policy
showing that the Required Additional Insureds are included as additional
insureds on liability policies (except employer’s liability). The Evidence of
Property Insurance Form will name Landlord as loss payee for property
insurance as respects Landlord’s interest in improvements and betterments.
Further, the certificates must include an endorsement for each policy whereby
the insurer agrees not to cancel

or non-renew the policy, or reduce the coverage below
the limits required in this Lease, without at least 30 days’ prior notice to
Landlord and Landlord’s managing agent.

(c) If Tenant fails to provide evidence of insurance
required to be provided by Tenant hereunder, prior to commencement of the term
and thereafter during the term, within 10 days following Landlord’s request
thereof, and 10 days prior to the expiration date of any such coverage,
Landlord will be authorized (but not required) to procure such coverage in the
amount stated with all costs thereof to be chargeable to Tenant and payable
upon written invoice thereof.

(d) The limits of insurance required by this Lease, or
as carried by Tenant, will not limit the liability of Tenant or relieve Tenant
of any obligation thereunder, except to the extent provided for under Article 14
below. Any deductibles selected by Tenant will be the sole responsibility of
Tenant.

(e) Landlord may, at its sole discretion, change the
insurance policy limits and forms that are required to be provided by Tenant;
such changes will be made to conform to common insurance requirements for
similar properties in similar geographic locations.  Landlord will not change required insurance
limits or forms more often than once per calendar year.

 

Section 13.3
Landlord agrees to maintain during the Lease Term “all-risk” insurance
on the Building at replacement cost, excluding foundations and excluding the
items that Tenant is required to insure under Section 13.1(a).

 

Article 14. Waiver of Claims; Waiver of Subrogation

 

Section 14.1
To the extent permitted by law, Tenant waives all claims it may have
against Landlord, its agents or employees for damage to property sustained by
Tenant or any occupant or other person resulting from the Premises or the
Building or any part of said Premises or Building becoming out of repair or
resulting from any accident within or adjacent to the Premises or Building or
resulting directly or indirectly from any act or omission of Landlord or any
occupant of the Premises or Building or any other person while on the Premises
or the Building, or resulting from any peril required to be insured against
under this Lease, regardless of cause of origin. Particularly, but not in
limitation of the foregoing sentence, all property belonging to Tenant or any
occupant of the Premises that is in the Building or the Premises will be there
at the risk of Tenant or other person only, and Landlord or its agents or
employees

 

 

will not be liable for damage to or theft of or
misappropriation of such property, nor for any damage to property resulting
from fire, explosion, flooding of basements or other subsurface areas, falling
plaster, steam, gas, electricity, snow, water or rain which may leak from any
part of the Building or from the pipes, appliances or plumbing works therein or
from the roof, street or subsurface or from any other place or resulting from
dampness or any other cause whatsoever, nor for any latent defect in the
Premises or in the Building.  Tenant will
give prompt notice to Landlord in case of fire or accidents in the Premises or
in the Building or of defects therein or in the fixtures or equipment.

 

Section 14.2 Tenant agrees to include in
the insurance policies which Tenant is required by this Lease to carry in
accordance with Sections 13(a) and 13(b), to the fullest extent permitted
by law, a waiver of subrogation against Landlord and Landlord’s Managing Agent.

 

Section 14.3
To the extent permitted by law, Landlord waives all claims it may have
against Tenant, its agents or employees for damage to the Building resulting
directly or indirectly from any act or omission of Tenant or any occupant of
the Premises or any other person while on the Premises, to the extent that such
claim is covered by any property insurance which Landlord is required under Article 13
to carry on the Building. Landlord will include in any property insurance
policy that Landlord may carry on the Building, to the extent permitted by law,
a waiver of subrogation against Tenant.

 

Section 14.4
Landlord will not be required to maintain insurance against thefts
within the Premises, the Building or any complex within which the Building is
located.

 

Article 15. Indemnity

 

Section 15.1
Tenant shall not do or permit any act of thing to be done upon the
Premises or the Building that may subject Landlord, its trustees, partners,
shareholders, officers, directors, employees, agents and contractors and the
managing agent for the Building (and the partners, shareholders, officers,
directors and employees of Landlord’s agents and contractors and of the
managing agent for the Building) (each an “Indemnitee” and all, collectively,
as the “Indemnitees”) to any liability or responsibility for injury, damage to
persons or property or to any liability by reason of the existence or
application of, compliance with or violation of any applicable Law, but shall
exercise such control over the Premises as to protect each Indemnitee fully
against any such liability and responsibility. Subject to the provisions of
Articles 14 and 16 of this Lease, Tenant shall indemnify and save harmless the
Indemnitees from and against (a) all claims of whatever nature against the
Indemnitees arising from any act, omission or negligence of Tenant, (b) all
claims against the Indemnitees arising from any accident, injury or damage
whatsoever caused to any person or to the property of any person and occurring
in or about the Premises during the Term or during Tenant’s occupancy of the
Premises, (c) all claims against the Indemnitees arising from any
accident, injury or damage occurring outside of the Premises but anywhere within
or about the Building, where such accident, injury or damage results or is
claimed to have resulted from an act, omission or negligence of Tenant, and (d) any
breach, violation or non-performance of

 

 

any covenant, condition or agreement contained in
this Lease to be fulfilled, kept, observed and performed by Tenant. 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, attorneys’ fees and disbursements)
incurred in or in connection with any such claim or proceeding brought thereon,
and the defense thereof.

 

Section 15.2 If any claim, action or
proceeding is made or brought against any Indemnitee, against which claim,
action or proceeding Tenant is obligated to indemnify such Indemnitee pursuant
to the terms of this Lease, then, upon demand by the Indemnitee, Tenant, at its
sole cost and expense, shall resist or defend such claim, action or proceeding
in the Indemnitee’s name, if necessary, by such attorneys as the Indemnitee may
select, including, without limitation, attorneys for the Indemnitee’s insurer.
Notwithstanding the foregoing, if such attorneys shall be defending both Tenant
and an Indemnitee, such Indemnitee may retain its own attorneys to defend or
assist in defending any claim, action or proceeding, and Tenant shall pay the
reasonable fees and disbursements of such attorneys. The provisions of this Article 14
shall survive the expiration or earlier termination of this Lease.

 

Article 16. Casualty

 

Section 16.1
If (a) the Premises are damaged by fire or other casualty, or (b) the
Building or any Building system is damaged by fire or other casualty so that
Tenant is deprived of reasonable access to the Premises or the Premises are
unusable by Tenant for the reasonable conduct of Tenant’s normal business in
the Premises, Tenant shall give prompt notice to Landlord. Subject to the
provisions of this Article, the damage shall be repaired by Landlord, at
Landlord’s expense, excluding damage to Tenant’s Work or Tenant’s Property.
Until the repairs to be performed by Landlord are substantially completed, the
Rent shall be reduced in proportion to the area of the Premises to which Tenant
shall not have reasonable access or which is unusable by Tenant for the
reasonable conduct of Tenant’s normal business in the Premises.

 

Section 16.2
If the cost of repairing any damage to the Building by fire or other
casualty (whether or not the Premises are damaged, exceeds 25 percent of the
replacement cost of the Building as reasonably estimated by a reputable
contractor, architect or engineer selected by Landlord, Landlord may, not later
than 60 days following the date of the damage, give Tenant a notice terminating
this Lease. If this Lease is terminated under this Section, the Term shall
expire on the 10th day after the notice is given as if that date were the
Expiration Date (and any Rent paid by Tenant to Landlord for any period after
that date shall be promptly refunded by Landlord to Tenant).

 

Section 16.3
If a fire or other casualty results in the reduction of Rent pursuant
to Section 16.1 with respect to 50 percent or more of the Premises,
Landlord shall, within 60 days following the fire or other casualty, deliver to
Tenant an estimate by a reputable contractor, architect or engineer selected by
Landlord of the time required to substantially complete the repair of the
Premises. If (a) the estimate exceeds the lesser of 180 days following the
fire or other casualty or the remaining Term, and (b) there is no

 

 

Default and Tenant did not cause the fire or other
casualty, Tenant shall have the right, by notice to Landlord within 10 days
following the date Tenant receives the estimate, to terminate this Lease
effective the date which is 60 days following the date of its notice, in which
event Tenant shall pay the Rent to the date of termination (or the date of the
fire or other casualty for that part of the Premises with respect to which the
Rent is reduced pursuant to Section 16.1), and the Term shall expire on
that date as if that date were the Expiration Date.

 

Section 16.4 If this Lease is not
terminated as provided in this Article (a) Tenant shall, at Tenant’s
expense, promptly remove Tenant’s Property from the Premises to the extent
required by Landlord in connection with Landlord’s repair of the damage and (b) if
for any reason the repair is not substantially complete (i) if Section 16.3
shall not apply, 270 days following the fire or other casualty or (ii) if Section 16.3
shall apply, the later of 270 days following the fire or other casualty and the
period set forth in the estimate, if there is no Default and Tenant did not
cause the fire or other casualty, Tenant shall have the right, by notice to the
Landlord within 10 days following the end of that period, to terminate this
Lease effective the date which is 60 days following the date of its notice, in
which event Tenant shall pay the Rent to the date of termination (or the date
of the fire or other casualty for that part of the Premises with respect to
which the Rent is reduced pursuant to Section 16.1), and the Term shall
expire on that date as if that date were the Expiration Date.

 

Section 16.5
This Article constitutes an express agreement governing any 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, and any other similar Law
shall have no application to a fire or other casualty.

 

Article 17.Condemnation

 

Section 17.1
If as the result of a taking by condemnation or similar legal action of
an Authority (a) all of the Premises, or so much thereof as renders the
Premises wholly unusable by Tenant, is taken, (b) a portion of the
Building or the Land is taken, resulting in Tenant no longer having reasonable
access to or use of the Premises, (c) all or substantially all of the
Building or the Land is taken or (d) a portion of the Building is taken
resulting in Landlord’s determination to demolish the Building, this Lease
shall end as of the date of the vesting of title with the same effect as if
that date were the Expiration Date. In that event, the Rent shall be
apportioned as of the date of termination and any Rent paid by Tenant to
Landlord for any period after that date shall be promptly refunded by Landlord
to Tenant.

 

Section 17.2
In the event of any such taking of all or any part of the Premises, the
Building or the Land, Landlord shall be entitled to receive the entire award.
Tenant shall have no claim against Landlord or any Authority for the value of
the unexpired portion of the Term or Tenant’s Work, and Tenant hereby assigns
to Landlord all of its right in and to any such award. Tenant may, however, at
Tenant’s expense, make a separate claim to the acquiring Authority for the
value of Tenant’s Property and for moving expenses, provided such claim and
award, if any, does not result in a

 

 

reduction of the award which would otherwise be made
to Landlord.

 

Section 17.3
If a taking does not result in the termination of this Lease (a) Landlord,
at Landlord’s expense, shall as soon as practicable restore that part of the
Premises or the Building (or the Land) not taken, so that the Premises are
usable, and (b) from and after the date of the vesting of title, the Rent
shall be reduced in the same proportion as the area of the Premises, if any,
which was taken.

 

Article 18.Assignment and Subletting

 

Section 18.1
Except as provided in this Article, Tenant shall not, without Landlord’s
consent (a) assign (by operation of law or otherwise), encumber or
otherwise transfer all or any interest in this Lease, (b) sublet or permit
others to occupy all or any part of the Premises (whether for desk space,
mailing privileges or otherwise) or (c) unless Tenant’s ownership
interests are publicly traded on a stock exchange or on the over the counter
market, transfer, redeem or issue (by one or more transactions) any ownership
interests of Tenant which results in 50 percent or more of the ownership
interests of Tenant being held by persons who did not hold 50 percent or more
of those ownership interests on the date of this Lease (any such transfer,
redemption or issuance to be considered an assignment of this Lease requiring
Landlord’s consent). Unless such ownership interests use publicly trade on a
stock exchange or on the over the counter market, a transfer, redemption or
issuance (by one or more transactions) of any ownership interests of Guarantor,
or any direct or indirect parent of Guarantor or of Tenant, which results in 50
percent or more of the ownership interests being held by persons who did not
hold 50 percent or more or those ownership interests on the date of this Lease,
shall be considered an assignment of this Lease requiring Landlord’s consent.
Landlord’s consent to an assignment, transfer, subletting or occupancy shall
not relieve Tenant from any liability under this Lease or from obtaining
Landlord’s consent to any further assignment, transfer, subletting or
occupancy.

 

Section 18.2
If Tenant desires to assign this Lease or sublet all or a portion of
the Premises for all or substantially all of the balance of the remaining Term,
Tenant shall give Landlord notice of Tenant’s desire and the desired effective
date accompanied by (i) a copy of the letter of intent, “term sheet” or
summary of proposed business terms exchanged between Tenant and Tenant’s
proposed subtenant or assignee, the proposed effective or commencement date of
which must be at least 30 days after the giving of Tenant’s notice, (ii) a
reasonably detailed description of the proposed assignee or subtenant and its
principals, the nature of its business and its proposed use of the Premises,
and (iii) current financial information with respect to the proposed
assignee or subtenant, including, without limitation, its most recent financial
statements (and Tenant shall promptly deliver to Landlord such additional
information as Landlord reasonably requests). Tenant’s notice shall be an offer
from Tenant to Landlord whereby Landlord may, at Landlord’s option exercise the
following rights, any of which Landlord may exercise by notice to Tenant given
within 15 days after Landlord receives Tenant’s notice:

 

 

(a) with respect to a proposed assignment of this Lease
or a sublease of seventy-five percent (75%) or more of the Premises, the right
to terminate this Lease on the proposed effective date of such assignment or
sublease as if it were the Expiration Date; and

(b) with respect to a proposed subletting of less
than seventy-five percent (75%) of the Premises, the right to terminate this
Lease as to the portion of the Premises affected by such subletting on the
proposed effective date of such sublease as if it were the Expiration Date; in
which case Tenant shall promptly execute and deliver to Landlord an appropriate
modification of this Lease which shall provide for Fixed Rent and Additional
Rent attributable to the portion of the Premises with respect to which Landlord
has terminated this Lease to be prorated and paid through such proposed
Effective Date and, thereafter, to reduce Tenant’s Fixed Rent, Tenant’s Share
in the proportion that the rentable area of the Premises covered by the
sublease bears to the entire Premises.

If Landlord exercises any of its options under this Section 18.2,
Landlord may then lease the Premises or any portion thereof to any Person
without any liability whatsoever to Tenant. If Landlord terminates this Lease
with respect to a portion of the Premises pursuant to Section 18.2(b),
Landlord shall perform the Work necessary to separately demise such portion in
accordance with applicable Laws at Tenant’s sole cost and expense. This Section shall
not apply to (i) any assignment of this Lease in connection with the
merger or consolidation of any person,

(ii) the transfer by any person of all or substantially
all of its assets or (iii) any assignment of this Lease by the transfer,
redemption or issuance (by one or more transactions) of ownership interests,
unless the primary asset of the person in question is this Lease.

 

Section 18.3 If Landlord does not timely
exercise Landlord’s option pursuant to Section 18.2, Landlord shall not
unreasonably withhold or delay its consent to the proposed assignment or
sublease, if:

(1) There is no Default.

 

(2) The proposed assignee or subtenant (a) shall
use the Premises for the Permitted Use and for no other purpose (but the
proposed assignee or subtenant need not be in the same business as Tenant), and
otherwise in accordance with this Lease, and (b) in Landlord’s reasonable
judgment, is engaged in a business which is in keeping with the then standards
of the Building, shall not violate any negative covenant contained in any other
lease in the Building, is reputable, and has sufficient financial worth
considering the responsibility involved;

(3) The proposed assignee or subtenant, and any person
which, directly or indirectly, controls, is controlled by, or is under common
control with, the proposed assignee or subtenant, is not (a) then an
occupant of any part of the Building (other than the Premises), or (b) a
person with whom Landlord is then negotiating (or with whom Landlord has within
the prior six-month period negotiated) a lease in the Building provided
Landlord then has, or reasonably anticipates having within 180 days of Tenant’s
request, available space in the Building which is substantially the same size
as the Premises (or the space to be sublet, if Tenant proposes to sublet less
than substantially all of the Premises);

(4) The proposed assignment or sublease complies with
the applicable provisions of this Article;

(5) Tenant reimburses Landlord for any reasonable costs
that Landlord incurs in

 

 

connection with the assignment or sublease (including,
without limitation, reasonable attorney’s fees and disbursements incurred by
Landlord in connection with the review of the proposed sublease or assignment;
as well as the preparation and revision of a written consent to such sublease
or assignment or a written disapproval of such sublease or assignment; and the
negotiation of the foregoing);

(6) Tenant has not advertised the availability of the
Premises without prior notice to Landlord, (which advertisement shall not state
the proposed rental or other financial terms of the proposed assignment or
sublease);

(7) The proposed sublease is for a term ending not later
than one day prior to the Expiration Date, and provides as follows: (a) the
sublease is subject and subordinate to this Lease and to the matters to which
this Lease is or shall be subject and subordinate; (b) the sublease may
not be changed or extended (but may be terminated or reduced in term), assigned
or encumbered, or the subleased space further sublet or occupied by others,
except as provided in this Lease; (c) the subtenant shall not, without
Landlord’s consent, take any action, which, if to be taken by Tenant, would
require Landlord’s consent; (d) the subtenant shall, upon notice by
Landlord that Tenant is in Default, pay the rent under the sublease directly to
Landlord to be applied to the Rent under this Lease (and Tenant hereby consents
to that payment); (e) the subtenant shall carry the insurance and furnish
to Landlord the evidence thereof required by this Lease to be carried and
furnished by Tenant, name Landlord and any other party designated by Landlord
as additional insureds, and the provisions of Article 14 shall apply
between Landlord and the subtenant; and (f) in the event of any
termination, re-entry or dispossess by Landlord under this Lease, the subtenant
shall vacate the sublet premises, unless Landlord, at Landlord’s option, elects
to take over all right, title and interest of Tenant, as sublandlord, under the
sublease, in which event the subtenant shall, at Landlord’s option, attorn to
Landlord pursuant to the then executory provisions of the sublease, except that
Landlord shall not be (i) liable for any previous act or omission of
Tenant under the sublease, (ii) subject to any offset not expressly
provided in the sublease, or (iii) bound by any change (other than a
termination or a reduction in term) or extension of the sublease or prepayment
of more than one month’s rent to which Landlord did not consent;

(8) No more than 2 occupants (including Tenant) shall
occupy the Premises at any one time (but if the Premises consist of space on
more than one floor, this restriction shall apply with respect to each such
space).

 

Section 18.4
Tenant shall be responsible for any act or omission of any assignee or
subtenant (or anyone claiming through any assignee or subtenant) which violates
this Lease, and that violation shall be considered a violation by Tenant. If
Landlord denies consent to a proposed assignment or sublease, or if Landlord
exercises Landlord’s option under Section 18.2, Tenant shall indemnify,
defend and hold harmless Landlord and Landlord’s managing agent, if any,
against and from any and all loss, liability, damages, costs and expenses
(including, without limitation, reasonable counsel fees) resulting from any
claims that may be made against Landlord or Landlord’s managing agent, if any,
by any proposed assignee or subtenant or by any brokers or other person
claiming a commission or similar compensation in connection with the proposed
assignment or sublease.

 

Section 18.5
If Landlord consents to any assignment or sublease,

 

 

Tenant shall pay Landlord, as Additional Rent:

 

(a) in the case of each and every assignment, an amount
equal to 50% of all sums and other consideration whatsoever paid Tenant by the
assignee for (or by reason of) such assignment (including sums paid for the
sale of Tenant’s fixtures, leasehold improvements, equipment, furniture,
furnishings or other personal property in excess of the fair market sale or
rental value thereof) after first deducting Tenant’s Expenses (as defined
below); and

(b) in the case of each and every sublease 50% of all
rents, additional charges or other consideration whatsoever paid to Tenant by
the subtenant which exceed all Rents under this Lease accruing during the term
of the sublease in respect of the subleased space (i.e. allocated in proportion
to the space demised, as reasonably computed by the Managing Agent) pursuant to
the terms hereof (including, but not limited to, sums paid for the sale or
rental of Tenant’s fixtures, leasehold improvements, equipment, furniture or
furnishings or other personal property in excess of the fair market sale or
rental value thereof) after first deducting Tenant’s Expenses (as defined
below) ratably over the Term of the sublease.

 

Tenant shall pay Landlord all amounts due under this
Section 18.5 if, as and when paid by the assignee or subtenant to Tenant.
In this Section 18.5, the term “Tenant’s Expenses” shall mean in
connection with an assignment or sublease: all reasonable and customary
advertising expenses; not more than 150% of a standard brokerage commission;
reasonable legal fees; costs incurred in connection with a takeover of a
subtenant’s or assignee’s lease obligations; construction allowances or cost of
a work letter; and other reasonable and customary tenant concessions incurred
or to be incurred by Tenant.  This Section shall
not apply to an assignment excluded from Section 18.2 or any assignment or
sublease described in Section 18.6.

 

Section 18.6
Tenant may, without Landlord’s consent and without complying with Section 18.2,
assign this Lease or sublet all or any part of the Premises to any person
which, directly or indirectly, controls, is controlled by, or is under common
control with Tenant (which means the ownership, directly or indirectly, of more
than 50 percent of all ownership interests and the possession, directly or
indirectly, of the power to direct management), or allow any such person to
occupy all or any part of the Premises, provided that (a) there is no
Default, (b) Landlord is given not less than 10 days prior notice of the
assignment, sublet or occupancy, enclosing with the notice an executed original
of all related documents, including, without limitation, an original assignment
or sublease (with an assumption signed by the assignee), a reasonably detailed
description of the assignee, subtenant or occupant and its principals,
reasonably detailed financial information covering the assignee, subtenant or
occupant (and Tenant shall promptly deliver such additional information as
Landlord reasonably requests), and proof reasonably satisfactory to Landlord of
the requisite control and (iii) the Premises are not further demised, and
no demising walls, barriers, separate entrances, public corridors or like
installations are constructed in the Premises.

 

 

Article 19.Access

 

Section 19.1 Landlord shall have the right, without
the same constituting an eviction or constructive eviction of Tenant in whole
or in part and without any abatement of the Rent or liability to Tenant, to (a) place
(and have access to) concealed ducts, pipes and conduits through the Premises, (b) enter
the Premises at reasonable times on reasonable prior notice, which may be oral
(but prior notice shall not be required in an emergency), to inspect the
Premises, to show the Premises to others or to perform any work Landlord deems
necessary or desirable to the Premises, the Building, or the Building systems
or for the purpose of complying with Laws, (c) alter or repair the
Building, the Land or the Building systems, and change the arrangement or
location of entrances, corridors, doorways, elevators, stairs, toilets, or
other public portions of the Building or the Land (provided that Tenant shall
have reasonable access to the Premises and the toilets and, as a result
thereof, there shall be no material reduction in the services provided by
Landlord to Tenant), (d) change the name, number or designation by which

 

130565.3 31 

 

the
Building is known and (e) take all material into the Premises that may be
required in connection with any of the matters described in this Section. If
Tenant is not present when Landlord desires to enter the Premises, Landlord or
Landlord’s contractors may enter the Premises (by force, in the event of an
emergency) without liability to Tenant.

 

Section 19.2
If there is to be any excavation or construction adjacent to the
Building, Tenant shall permit Landlord or any other person to enter the
Premises to perform such work as Landlord or that person deems necessary to
protect the Building, without any abatement of the Rent or liability to Tenant.

 

Section 19.3
Except as may be provided in this Lease, all walls, windows and doors
bounding the Premises (including, without limitation, exterior walls of the
Building, core corridor walls, and exterior doors and entrances), other than
surfaces facing the interior of the Premises and doors and entrances servicing
only the Premises, balconies, terraces, vaults, Building systems, Building
facilities and all other portions of the Building are reserved to Landlord for
Landlord’s use, are not part of the Premises, and Landlord may have access
thereto through the Premises.

 

Section 19.4
Landlord shall exercise Landlord’s rights under this Article in a
manner which minimizes interference with the conduct of Tenant’s business in
the Premises and damage to the Premises, Tenant’s Work and Tenant’s Property
(all of which shall be repaired by Landlord), but Landlord is not required to
employ overtime labor or incur additional expenses.

 

Article 20.Default

 

Section 20.1
Each of the following is a “Default” by Tenant under this Lease:

 

(a) Tenant fails to pay when due any Rent and the
failure continues for five days

 

 

following Tenant’s receipt of Landlord’s notice.  If, however, Tenant receives such a notice
twice in any 12- month period, any additional failure to pay any Rent when due
within that 12month period (even if cured within the applicable cure period)
shall be considered a Default (without the requirement of a notice by
Landlord).

(b) Tenant fails to comply with the provisions of
Article 18.

(c) Tenant fails to comply with any other term of this
Lease and the failure continues for 30 days following Tenant’s receipt of
Landlord’s notice. If, however, compliance cannot, with diligence, reasonably
be fully accomplished within that 30-day period (and Tenant’s failure to comply
is not primarily the result of Tenant’s financial condition), Tenant shall have
as long as is reasonably necessary to fully comply, provided Tenant commences
compliance within that 30-day period and thereafter pursues compliance to
completion with diligence.

(d) Tenant or Guarantor, if any, institutes, or has
instituted against it (which is not dismissed within 60 days), any legal action
seeking any relief from its debts under any Law or a receiver, trustee,
custodian or other similar official is appointed for it or for all or a
substantial portion of its assets, or commits any other act indicating
insolvency.

(e) Tenant fails to comply with any term of any other
Lease in the Building (following any applicable cure period) or Guarantor, if
any, fails to comply with any term of its Guaranty (following any applicable
cure period).

 

Section 20.2
If a Default occurs, Landlord may at any time during the continuance of
the Default give notice to Tenant that this Lease shall terminate on the date
specified in that notice, which date shall not be less than five days after the
giving of the notice. If Landlord gives that notice, this Lease shall terminate
on the date set forth in that notice as if that date were the Expiration Date
(but Tenant shall remain liable as provided in this Lease).

 

Section 20.3
If Tenant is in arrears in the payment of the Rent, Tenant waives
Tenant’s right, if any, to designate the items against which any payments made
by Tenant are to be credited, and Landlord may apply any payments made by
Tenant to any items Landlord sees fit.

 

Article 21.Remedies

 

Section 21.1
If this Lease is terminated pursuant to Article 20 or Landlord
reenters or obtains possession of the Premises by summary proceedings or any
other legal action permitted by any Law (which Landlord may do upon or at any
time during a Default without further notice and without liability or
obligation to Tenant or any occupant of the Premises), all of the provisions of
this Section shall apply (in addition to any other applicable provisions
of this Lease).

 

(a) Tenant (and all other occupants) shall vacate and
surrender to Landlord the Premises in accordance with this Lease.

(b) Landlord, at Landlord’s option, may (i) relet
the Premises, or any portion of the Premises, from time to time, in the name of
Landlord or otherwise, to any person and on any terms, but Landlord shall have
no obligation to relet the Premises, or any portion of

 

 

the Premises, or to collect any rent (and the failure to
relet the Premises, or any portion of the Premises, or to collect any rent
shall not impose any liability or obligation on Landlord or relieve Tenant of
any obligation or liability under this Lease), and (ii) make any changes
in the Premises as Landlord, in Landlord’s judgment, considers advisable or
necessary in connection with a reletting, without imposing any liability or
obligation on Landlord or relieving Tenant of any obligation or liability under
this Lease.

(c) Tenant shall pay Landlord all Rent payable to the
date on which this Lease is terminated or Landlord reenters or obtains possession
of the Premises.

(d) Tenant shall also pay to Landlord, as damages, any
deficiency between (i) the aggregate Rent for the period which otherwise
would have constituted the unexpired portion of the Term (conclusively
presuming the additional rent for each year thereof to be the same as was
payable for the year immediately preceding the termination or re-entry) and any
expenses incurred by Landlord in connection with the termination of this Lease,
Landlord’s reentering or obtaining possession of the Premises, and the
reletting of the Premises, including, without limitation, all repossession
costs, brokerage commissions, attorneys’ fees and disbursements, alteration
costs and other expenses of preparing the Premises for reletting and (ii) the
rents, if any, applicable to that period collected under any reletting of any
portion of the Premises.

 

130565.3
33

 

Tenant shall pay any deficiency in monthly
installments on the days specified in this Lease for payment of installments of
the Fixed Rent, and Landlord shall be entitled to recover from Tenant each
monthly deficiency as the same arises. No suit to collect the deficiency for
any month shall prejudice Landlord’s right to collect the deficiency for any
subsequent month.

 

(e) Landlord may recover from Tenant, and Tenant shall
pay Landlord, on request, in lieu of any further deficiency (as liquidated
damages) the amount by which (i) the Rent for the period which otherwise
would have constituted the unexpired portion of the Term (conclusively
presuming the additional rent for each year thereof to be the same as was
payable for the year immediately preceding the termination or re-entry) exceeds
(ii) the then fair and reasonable rental value of the Premises, including
the additional rent for the same period, both discounted to present value at
the annual rate of interest (the “Base Rate”) publicly announced by Citibank,
N.A., New York, New York (or any successor thereto) as its “base rate” on the
date of the Default in question, or such other term as may be used by Citibank,
N.A. from time to time for that rate (and if no longer publicly announced, then
a similar rate selected by Landlord). If, before presentation of proof of
liquidated damages, Landlord relets the Premises or any portion of the Premises
for any period, the net rents payable in connection with the reletting shall be
considered to be the fair and reasonable rental value for the Premises or the
portion of the Premises relet during the term of the reletting.  If Landlord relets the Premises, or any portion
of the Premises, together with other space in the Building, the rents collected
under the reletting and the expenses of the reletting shall be equitably
apportioned for the purposes of this Article. 
Tenant shall not be entitled to any rents payable (whether or not
collected) under any reletting, whether or not those rents exceed the Rent.

(f) Nothing contained in this Lease shall be
considered to limit or preclude the recovery by Landlord from Tenant of the
maximum amount allowed to be obtained as

 

 

damages or otherwise by any Law, in addition to the damages
and other amounts set forth in this Lease.

 

Section 21.2 Tenant hereby waives (a) the service of any notice of
intention to re-enter or obtain possession of the Premises or to institute any
legal action in connection therewith, except as provided in this Lease and (b) on
its own behalf and on behalf of all persons claiming under Tenant, including
all creditors, any rights Tenant and all such persons might otherwise have
under any Law to redeem the Premises, to re-enter or repossess the Premises, or
to restore this Lease, after (i) Tenant is dispossessed pursuant to any
Law or by any Authority, (ii) Landlord reenters or obtains possession of
the Premises, or (iii) any expiration or termination of this Lease,
whether by operation of law or pursuant to this Lease. The words “re-enter,” “reentry”
and “re-entered” as used in this Lease shall not be considered to be restricted
to their technical legal meanings. Landlord shall have the right to enjoin any
Default and the right to invoke any remedy allowed by any Law in addition to
any remedies provided in this Lease. Landlord’s right to invoke, or the
invocation of, any remedy is cumulative and shall not preclude Landlord from
invoking any other remedy.

 

Section 21.3
If there is a Default, or if Tenant fails to comply with any obligation
under this Lease which, in Landlord’s reasonable opinion creates an emergency,
Landlord may, but is not obligated to, cure the Default or, without notice, the
failure to comply, for the account of Tenant. All amounts incurred by Landlord
in that connection, and any amounts (including, without limitation, reasonable
attorneys’ fees and disbursements) in

 

130565.3
34

 

instituting, prosecuting or defending any legal
action, or in connection with any dispute under this Lease, in which Landlord
prevails, with interest thereon at the Default Rate, shall be paid by Tenant to
Landlord within 10 days following Tenant’s receipt of Landlord’s request.  Landlord shall promptly reimburse Tenant for
any reasonable attorneys’ fees and disbursements incurred by Tenant in
connection with any legal action or other dispute with Landlord under this
Lease, in which Tenant prevails.

 

Section 21.4
If Tenant fails to pay any installment of the Fixed Rent on the first
day of the month or any additional rent when due, in addition to any other
right or remedy of Landlord, Tenant shall pay to Landlord within 10 days
following Tenant’s receipt of Landlord’s request (a) a late charge equal
to 4% of the amount unpaid and (b) interest at the lesser of (the “Default
Rate”) the rate of 4% per annum above the Base Rate or the maximum legal
interest rate permitted under the circumstances, on the amount unpaid, from the
date the payment was first due to and including the date paid.

 

Section 21.5
(a) All legal actions relating to this Lease shall be adjudicated
in the state courts of the State of New York, or the federal courts, in either
case having jurisdiction in the county in which the Building is located.  Tenant irrevocably consents to the personal
and subject matter jurisdiction of those courts in any legal action relating to
this Lease. This consent to jurisdiction is self-operative and no further
instrument or legal action, other than service of process in any manner
permitted by law or this Section, is necessary in order to confer jurisdiction
upon the person of

 

 

Tenant and the subject matter in question in any
such court.

 

(b) Tenant irrevocably waives and shall not assert, by
way of motion, as a defense or otherwise (i) any objection to any such
court being the venue of any legal action relating to this Lease, (ii) any
claim that any legal action relating to this Lease brought in any such court
has been brought in an inconvenient forum, or (iii) any claim that Tenant
is not personally subject to the jurisdiction of that court.

(c) Service in any legal action relating to this Lease
may be made by delivery of the summons and complaint, or the petition and
notice of petition, by certified or registered mail, return receipt requested,
sent to Tenant at Tenant’s Notice Address.

(d) Tenant, for itself and all of its agencies and
instrumentalities, hereby waives any sovereign immunity from jurisdiction that
Tenant or any such agency or instrumentality might otherwise possess with
respect to any legal action relating to this Lease, and waives any sovereign
immunity from attachment prior to entry of judgment and from attachment in aid
of execution that any of Tenant’s property, or the property of any such agency
or instrumentality, might otherwise have, irrespective of the use or intended
use of the Premises.

 

Article 22.Security Deposit

 

Section 22.1
Tenant has deposited with Landlord the Security Deposit, as security
for Tenant’s compliance with this Lease. If there is a Default, Landlord may
use all or any portion of the Security Deposit to cure the Default or for the
payment of any other amount due and payable from Tenant to Landlord in
accordance with this Lease. Tenant shall, within 10 days following Tenant’s receipt
of Landlord’s request, deposit with Landlord cash in an amount sufficient to
restore the full amount of the Security Deposit (without giving consideration
to any

 

130565.3
35

 

interest accrued on the Security Deposit). Landlord
shall not, unless required by any Law, pay interest to Tenant on the Security
Deposit, and if Landlord is required to maintain the Security Deposit in an
interest bearing account or pay any interest to Tenant, Landlord shall retain
the maximum amount of interest permitted under any Law (which Landlord may
withdraw and retain annually or at any other times) as an administrative charge
or otherwise. Tenant shall not assign (other than to a permitted assignee of
this Lease) or encumber the Security Deposit, and no prohibited assignment or
encumbrance by Tenant of the Security Deposit shall bind Landlord.  Landlord shall not be required to exhaust its
remedies against Tenant or Security Deposit before having recourse to Tenant,
Guarantor, if any, the Security Deposit or any other security held by Land
lord, or before exercising any right or remedy, and recourse by Landlord to any
one of them, or the exercise of any right or remedy, shall not affect Landlord’s
right to pursue any other right or remedy or Landlord’s right to proceed against
the others. If Tenant complies with this Lease, the Security Deposit and the
accrued and unpaid interest thereon, if any, or any balance, shall be paid to
Tenant promptly after the expiration or sooner termination of the Term and
Tenant’s vacating of the Premises in accordance with this Lease.  If the Building is sold or leased, Landlord
shall transfer the Security Deposit and the accrued

 

 

and unpaid interest thereon, if any, or any balance,
to the new Landlord and the assignor shall thereupon be automatically released
by Tenant from all liability for the return of the Security Deposit or any
interest (and Tenant agrees to look solely to the assignee for the return of
the Security Deposit or any interest).

 

Section 22.2
Pursuant to New York General Obligations Law Section 7-103, Tenant
acknowledges that (i) the amount of the Security Deposit is set forth in Article 1
above and (ii) the name and address of the banking organization in which
the Security Deposit shall be held by Landlord is as follows: JP Morgan Chase
Manhattan Bank, 1166 Avenue of the Americas, New York, New York 10036. Tenant
shall submit to Landlord a United States Internal Revenue W-9 (Tax Withholding)
Form upon the execution of this Lease.

 

Section 22.3
(a) In lieu of a cash Security Deposit, on the execution and
delivery of this Lease by Tenant, Landlord may require Tenant to deposit, and
Tenant may require Landlord to accept, as the Security Deposit, a standby
letter of credit (the “Letter of Credit”) on the terms, and substantially in
the form, attached to this Lease as Exhibit F issued by a bank that is a
member of the New York Clearing House Association, L.L.C. having its principal
office in the City of New York and otherwise acceptable to Landlord, in the
amount of the Security Deposit, which Letter of Credit shall be held and drawn
by Landlord in accordance with this Article.

 

(b) If the issuing bank shall notify Landlord that the
term of the Letter of Credit shall not be renewed, Tenant shall, at least 50
days prior to the expiration date of the Letter of Credit (or any replacement
Letter of Credit, as the case may be), replace the Letter of Credit with a new
Letter of Credit issued in accordance with this Article having an initial
expiration date at least one year from the date of the new Letter of Credit.

(c) If, for any reason whatsoever other than
Landlord’s failure to comply with the requirements of the Letter of Credit, the
issuing bank shall fail or refuse to honor any demand, then Tenant shall within
five days following notice by Landlord to Tenant of such failure or refusal
either, at Landlord’s option (i) deposit with Landlord as the Security
Deposit a sum equal to the amount of the Letter of Credit, or (ii) replace
the Letter of Credit with a new Letter of Credit issued in accordance with this
Article (having an initial expiration date at least one year from the date
of the new Letter of Credit.

(d) If Landlord shall transfer its interest in the
Building, Tenant shall, at the request of the transferor or transferee, replace
or amend the Letter of Credit within 10 days following such request, so that
the transferee is named as the beneficiary. Any transfer fee or charge imposed
by the issuing bank shall be reimbursed to Landlord (or, at Landlord’s option,
paid) by Tenant within 10 days following Land lord’s request.

(e) If there shall be a Default, in addition to any
other right or remedy of Landlord, Landlord shall have the right to immediately
draw the full amount of the Letter of Credit (to be held as the Security
Deposit and used in accordance with this Lease).

 

Article 23.Broker

 

Section 23.1
Tenant represents to Landlord that Tenant dealt with no broker in
connection with this Lease other than the Broker. Tenant shall each indemnify,
defend and hold harmless Landlord from and against any claims for any brokerage
commissions or other compensation which are made by any broker other than the
Broker alleging to have dealt with Tenant in connection with this Lease, and
all costs, expenses, liabilities and damages in connection therewith,
including, without limitation, reasonable attorneys’ fees.  Landlord shall pay any commission due the
Broker pursuant to a separate agreement between Landlord and the Broker.

 

Article 24.Notices

 

Section 24.1
Except as may be provided in this Lease, all notices and other
communications under this Lease must be in writing and sent by messenger,
nationally recognized overnight courier service or registered or certified mail
(return receipt requested), addressed to Landlord or Tenant at its Notice
Address.

 

Section 24.2
Any notice or other communication sent as provided in this Article shall
be effective (a) on the date received (or rejected) if sent by messenger,
or overnight courier service, or (b) two Business Days after mailing by
registered or certified mail.

 

Section 24.3
Any notice or other communication given by Landlord to Tenant in
accordance with this Article may be signed and given by Landlord’s
managing agent, if any, with the same force and effect as if signed and given
by Landlord.

 

Article 25.Representations, Waivers (including jury trial waiver)
and Liability 

 

Section 25.1
Neither Landlord nor Landlord’s managing agent, if any, has made any
warranties, representations, statements or promises with respect to the
Premises, the Building the Land, the Building systems or services, any
additional rent, any Law or any other matter, unless set forth in this
Lease.  This Lease contains the entire
agreement between Landlord and Tenant with respect to the subject matter of
this Lease, and any previous agreements between Landlord and Tenant are merged
in this Lease, which alone expresses their agreement. Tenant is entering into
this Lease after full investigation, and is not relying on any warranties,
representations, statements or promises made by Landlord or any other person
not set forth in this Lease, and is not acquiring any rights of any nature, by
implication or otherwise, except as set forth in this Lease.

 

Section 25.2
No act or omission of Landlord or Tenant, or their respective
employees, agents or contractors, including, without limitation, the delivery
or acceptance of keys, shall be deemed an acceptance of a surrender of the
Premises, and no agreement to accept such surrender shall be valid unless it is
in a writing signed by Landlord. Any employee of Landlord, Landlord’s managing
agent, if any, or the

 

 

Building to whom any property is entrusted by or on
behalf of Tenant shall be deemed to be acting as Tenant’s agent with respect to
that property and neither Landlord nor Landlord’s managing agent, if any, shall
be liable for any damages to or loss of property of Tenant or others entrusted
to employees, agents or contractors of Landlord, Landlord’s managing agent, if
any, or the Building.

 

Section 25.3
The failure of Landlord to seek redress for a Default, or of Landlord
or Tenant to insist upon the strict performance of any term of this Lease,
shall not prevent Landlord from redressing a subsequent Default or Landlord or
Tenant from thereafter insisting on strict performance. The receipt by Landlord
of the Rent with knowledge of a Default or Tenant’s failure to strictly perform
under this Lease shall not be deemed a waiver of the Default or failure. No
term of this Lease shall be considered waived by Landlord or Tenant unless the
waiver is in a writing signed by the waiving party. No payment by Tenant or
receipt by Landlord of a lesser amount than the Rent provided in this Lease
shall be considered other than on account of the next installment of the Rent,
or as Landlord may elect to apply same. No endorsement or statement on any
check or letter accompanying any check or payment shall prevent Landlord from
cashing the check or otherwise accepting the payment, without prejudice to
Landlord’s right to recover the balance of the Rent or pursue any other remedy.

 

Section 25.4
Neither Landlord nor Landlord’s managing agent, if any, shall be liable
for any injury, damage or loss to Tenant, Tenant’s Property, Tenant’s Work,
Tenant’s business or to any other person or property resulting from any cause,
except to the extent caused by the negligence or willful misconduct of
Landlord, Landlord’s managing agent, if any, or their respective employees,
agents or contractors subject to Section 13.4.

 

Section 25.5
If, at any time or from time to time, any windows of the Premises are
temporarily closed, blocked or darkened for any reason, or permanently closed,
blocked or darkened if required by any Law or due to any construction on
property adjacent to the Building by any person, including, without limitation,
Landlord or any person in which Landlord has an interest (a) Landlord
shall not be liable for any loss or damage Tenant may sustain thereby, (b) Tenant
shall not be entitled to any compensation therefor nor abatement of the Rent, (c) Tenant
shall not be relieved from its obligations under this Lease and (d) it
shall not constitute an eviction or constructive eviction of Tenant from the
Premises.

 

Section 25.6
The obligations of the Landlord under this Lease shall not bind the
landlord named herein or any subsequent landlord after the transfer or Lease of
that landlord’s interest in the Building. In the event of a transfer or Lease (a) that
landlord shall be and hereby is entirely relieved of all obligations and
liabilities of the landlord under this Lease, and (b) the transferee or
lessee shall be deemed to have assumed all of Landlord’s obligations and
liabilities under this Lease effective from and after the effective date of the
transfer or Lease.

 

Section 25.7
Landlord, its partners, members, shareholders, officers, directors and
principals, disclosed or undisclosed, have no personal liability under or in

 

 

connection with this Lease. Tenant shall look only
to Landlord’s interest in the Building and the Land (or the proceeds of a sale
thereof) for the satisfaction of Tenant’s remedies for the collection of a
judgment (or other judicial process) requiring the payment of money by Landlord
under or in connection with this Lease, and no other property or assets of
Landlord or such persons shall be subject to lien, levy, execution or other
enforcement procedure for the satisfaction of Tenant’s remedies under or in
connection with this Lease, the relationship of Landlord and Tenant under this
Lease or Tenant’s use or occupancy of the Premises.  If Tenant acquires a lien on such other
property or assets by judgment or otherwise, Tenant shall promptly release that
lien by signing, acknowledging and delivering to Landlord any instrument,
prepared by Landlord, required for the lien to be released.

 

Section 25.8
(a) If Tenant requests Landlord’s consent or approval under this
Lease and Landlord denies, delays or conditions Landlord’s consent or approval,
Landlord shall have no liability therefor and Tenant shall not be entitled to
any damages.  Tenant’s sole remedy shall
be as provided in paragraph (b) of this Section, and that remedy shall be
available only if Landlord has in this Lease, with respect to the subject of
the request, agreed not to unreasonably withhold, delay or condition Landlord’s
consent or approval.  Landlord’s consent
or approval, to be effective, must be in a writing signed by Landlord.

 

(b) If (i) Tenant requests Landlord’s
consent or approval, (ii) Landlord denies, delays or conditions its
consent or approval, (iii) this Lease provides that such consent or
approval shall not be unreasonably withheld, delayed or conditioned and (iv) within
30 days following Landlord’s denial, delay or conditioning of its consent
Tenant gives notice to Landlord that Tenant considers same unreasonable, the
dispute shall be settled in the county in which the Building is located by
arbitration administered by the American Arbitration Association (“AAA”) under
the AAA’s Commercial Arbitration Rules, Expedited Procedures (to the extent
then in effect). A judgment on the award rendered by the arbitrator may be entered
in any court having Jurisdiction.  If the
arbitrator determines that Landlord’s consent or approval was unreasonably
withheld, delayed or conditioned, Landlord shall be considered to have given
its consent or approval (without the unreasonable condition, if applicable) but
Landlord shall not be liable for, and the arbitrator shall not award, any
costs, expenses, damages or losses whatsoever in connection with or arising out
of Landlord’s denial, delay or condition. 
The determination of the arbitrator shall be binding and conclusive on
Landlord and Tenant. Landlord and Tenant shall each pay their own expenses of
this procedure, except the fees and expenses of the AAA and the arbitrator
shall be paid 50 percent by Landlord and 50 percent by Tenant.

 

Section 25.9
Landlord and Tenant shall and they hereby do waive trial by jury in any
action, proceeding or counterclaim brought by either of them against the other
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, whether during or after the Term, or for the enforcement of any
remedy under any statute, emergency or otherwise.  If Landlord shall commence any summary
proceeding against Tenant, Tenant will not interpose any counterclaim of
whatever

 

 

nature or description in any such proceeding (unless
failure to interpose 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 or Landlord.

 

Section 25.10
Tenant hereby waives any rights Tenant may have in connection with any
zoning lot merger or subdivision or transfer of development rights with respect
to the Building or any Land, including, without limitation, any rights Tenant
may have to be a party to or to execute or contest any instrument providing for
such merger, subdivision or transfer.

 

Section 25.11
This Lease and the obligations of Tenant to pay the Rent and perform
Tenant’s other obligations under this Lease shall not be waived, delayed or
otherwise affected in any manner, and Landlord shall have no liability, if
Landlord is unable to comply with, or is delayed in complying with, any of
Landlord’s obligations under this Lease by reason of any strike, labor trouble,
accident, Law or other cause beyond Landlord’s control (“Unavoidable Events”).

 

Section 25.12
Tenant shall not perform or permit to be performed any act which may
subject Landlord or Landlord’s managing agent, if any, to any liability. Tenant
shall, to the extent not caused by the negligence or willful misconduct of
Landlord or its contractors or agents, indemnify, defend and hold harmless
Landlord and Landlord’s managing agent, if any, from and against (a) all
claims arising from any act or omission of Tenant, its contractors, agents,
employees, invites or visitors, (b) all claims arising from any accident,
injury or damage to any person or property in the Premises during the Term or
when Tenant is in possession of the Premises, and (c) Tenant’s failure to
comply with Tenant’s obligations under this Lease, and all liabilities,
damages, losses, fines, costs and expenses (including, without limitation,
reasonable attorneys’ fees and disbursements) incurred in connection with any
such claim or failure.

 

Article 26.End of Term

 

Section 26.1
On the Expiration Date (a) Tenant (and all other occupants) shall
vacate and surrender the Premises, broom clean and in good order and condition,
ordinary wear and tear and damage for which Tenant is not responsible under
this Lease excepted, and otherwise as may be required by this Lease, and (b) Tenant
shall remove all of Tenant’s Property and (subject to the provisions of this
Lease including, without limitation, Section 5.4 of this Lease) Tenant’s
Work. If the last day of the Term is not a Business Day, this Lease shall
expire on the immediately preceding Business Day. Tenant waives, for itself and
for any person claiming under Tenant, any right which Tenant or any such person
may have under Section 2201 of the New York Civil Practice Law and Rules or
under any similar Law.

 

Section 26.2
If the Premises are not vacated and surrendered in accordance with this
Lease, on the date required by this Lease, Tenant shall be liable to

 

 

Landlord for (a) all losses, costs, liabilities
and damages which Landlord incurs by reason thereof, including, without
limitation, reasonable attorneys’ fees, and Tenant shall indemnify, defend and
hold harmless Landlord against all claims made by any succeeding tenants
against Landlord or otherwise resulting from the failure of Tenant (and all
other occupants) timely to vacate and surrender the Premises in accordance with
this Lease, and (b) per diem use and occupancy in respect of the Premises
equal to twice the Rent payable under this Lease for the last year of the Term
(which Landlord and Tenant presently agree is the Rent to which Landlord would
be entitled, is presently contemplated by them as being fair and reasonable
under such circumstances and is not a penalty). In no event, however, shall
this Section be construed as permitting Tenant (and all other occupants)
to remain in possession of the Premises after the Expiration Date or earlier
termination of this Lease.

 

Section 26.3
If during the last 30 days of the Term, Tenant removes substantially
all of Tenant’s Property from the Premises, Landlord or any person designated
by Landlord may immediately enter and alter, renovate and redecorate the
Premises, without (a) abatement of the Rent, (b) releasing Tenant
from any obligation or liability under this Lease, (c) incurring any
liability or obligation to Tenant or (d) causing any actual or
constructive eviction.

 

Section 26.4
Any obligation of Landlord or Tenant under this Lease which by its
nature or under the circumstances can only be, or by the terms of this Lease
may be, performed after the Term, and any liability for a payment which has
accrued to or with respect to any period ending on or before the Expiration
Date, unless otherwise set forth in the this Lease, shall survive the
Expiration Date or earlier termination of this Lease.

 

Article 27. Substitute Space.

 

Section 27.1
At any time and from time to time whether before or after the
Commencement Date, Landlord shall have the right to substitute other space in
the Building (“Substitute Space”) for the Premises by notice (a “Substitution
Notice”) given to Tenant designating the space so substituted for the Premises.
The Substitute Space shall have a rentable area substantially similar to the
Premises.  Notwithstanding such
substitution of space, this Lease and all the terms, provisions, covenants and
conditions contained in this Lease shall remain and continue in full force and
effect, except that the Premises shall be and be deemed to be the Substitute
Space, with the same force and effect as if the Substitute Space were
originally specified in this Lease as the Premises demised hereunder.

 

Section 27.2 In the event of the
substitution of space as provided in Section 27.1 the following provisions
(A) through (D) shall apply: (A) If the Substitute Space has a
rentable area less than the rentable area of the Premises, the Fixed Rent and
Tenant’s Share of Taxes and the Wage Escalation payable under this Lease,
effective on the date that Tenant takes possession of the Substitute Space (the
“Substitution Date”), shall be decreased to reflect the lesser number of
rentable square feet in the Substitute Space, provided, however, that in no
event shall the Substitute Space contain less than

 

 

ninety-five
(95%) percent of the rentable area of the Premises.

(B) Landlord shall, at Landlord’s expense,
prepare the Substitute Space in substantially the same manner as Tenant has
prepared the Premises and shall have the right to remove any floor covering,
cabinet work, and any other decoration to the Substitute Space, as well as
telephone lines and any other communication line to the Substitute Space. (C) As
soon as Landlord has completed preparing the Substitute Space as set forth in Section 27.2(B),
Tenant, upon15 days’ prior written notice, shall move to the Substitute Space
at Landlord’s sole cost and expense, and upon failure of Tenant so to move to
the Substitute Space, Landlord, as Tenant’s agent, may remove Tenant from the
Premises to the Substitute Space.  The
failure of Tenant to move to the Substitute Space pursuant to this Article 27
shall be deemed a default under this Lease. (D) Promptly after Tenant
shall enter into occupancy of the Substitute Space, Landlord shall reimburse
Tenant, if Land lord shall have given the Substitution Notice after Tenant has
moved into the Premises, for Tenant’s reasonable moving expenses. Upon request
from Landlord, Tenant shall supply Landlord with satisfactory evidence of
out-of-pocket expenses incurred by Tenant in moving from the Premises to the
Substitute Space.

 

Section 27.3
Following any substitution of space pursuant to this Article, Landlord
and Tenant, promptly at the request of either party, shall execute and deliver
a supplementary agreement setting forth such substitution of space, the
Substitution Date and the change (if any) in the Fixed Rent and Additional
Rent.

 

Article 28. Miscellaneous

 

Section 28.1
If prior to the Commencement Date, Tenant shall occupy any portion of
the Premises for the performance of Tenant’s Work or any other work or changes
in the Premises or otherwise, Tenant shall, commencing as of the date of such
occupancy, pay Landlord’s charges for: (i) electricity at the rate of
$3.00 per rentable square foot per year (with respect to the portion of the
Premises so occupied), and (ii) such items for which Tenant is separately
billed hereunder, including, without limitation, overtime use of freight
elevator and HVAC service and extra cleaning services. Such charges and items
shall be payable to Landlord on demand.

 

Section 28.2 If Tenant is a partnership,
or is comprised of two (2) or more persons, individually or as co-partners
of a partnership (any such partnership and such persons are referred to in this
Section as “Partnership Tenant “), or if Tenant’s interest in this Lease
shall be assigned to a Partnership Tenant, the following provisions shall apply
to such Partnership Tenant: (a) the liability of each of the parties
comprising Partnership Tenant shall be joint and several; (b) each of the
parties comprising Partnership Tenant hereby consents in advance to, and agrees
to be bound by (i) any written agreement that may hereafter be executed by
Partnership Tenant or any successor entity, changing, extending or discharging
this Lease, in whole or in part, or surrendering all or any part of the
Premises to Landlord, and (ii) any Notices that may hereafter be given by
Partnership Tenant or by any of the parties comprising Partnership Tenant; (c) any
Notices given or rendered to Partnership Tenant or to any of such parties shall
be binding upon Partnership Tenant and all such parties; (d) if
Partnership Tenant admits new partners, all of such new partners shall, by
their admission to Partnership Tenant, be

 

 

deemed to have assumed joint and several liability
for the performance of all of the terms, covenants and conditions of this Lease
on Tenant’s part to be observed and performed; (e) Partnership Tenant
shall give prompt notice to Landlord of the admission of any such new partners,
and upon demand of Landlord, shall cause each such new partner to execute and
deliver to Landlord an agreement in form satisfactory to Landlord, wherein each
such new partner assumes joint and several liability for the performance of all
the terms, covenants and conditions of this Lease on Tenant’s part to be
observed and performed (but neither Landlord’s failure to request any such
agreement nor the failure of any such new partner to execute or deliver any
such agreement to Landlord shall vitiate the provisions of clause (d) of
this Section); and (f) any present or future partner of Partnership Tenant
who is no longer a partner of Partnership Tenant at the time of any default
under this Lease shall, nevertheless, remain liable for the obligations of
Tenant under this Lease, as if any such partner had been a partner of
Partnership Tenant on the date of such default.

 

Section 28.3
The location, size, materials, quality, design, color and lettering of
any signs desired by Tenant shall be subject to the prior approval of Landlord
and shall be in compliance with the standards promulgated by Landlord.  At Landlord’s option, Landlord may install
any such signs, and Tenant shall pay all costs associated with such
installation, as Additional Rent, within ten (10) days after demand
therefor.

 

Section 28.4
(a) This Lease shall be governed by the law of the State of New
York. Tenant shall not record this Lease or any memorandum of this Lease.

 

(b) If Tenant is a corporation or a limited liability
company, each person executing this Lease on behalf of Tenant hereby covenants,
represents and warrants that Tenant is duly incorporated, duly formed or duly
qualified (if foreign), is in good standing and is authorized to do business in
the State of New York (a copy of evidence thereof to be supplied to Landlord
upon request); and that each person executing this Lease on behalf of Tenant is
an officer or member of Tenant and that he or she is duly authorized to
execute, acknowledge and deliver this Lease to Landlord (a copy of a resolution
or other evidence to that effect to be supplied to Landlord upon request).
Subject to the provisions of this Lease, this Lease shall bind and inure to the
benefit of Landlord and Tenant and their respective legal representatives,
successors and assigns.

(c) This Lease contains the entire agreement between the
parties and all prior negotiations and agreements are merged into this
Lease.  This Lease may not be changed,
abandoned or discharged, in whole or in part, nor may any of its provisions be
waived except by a written agreement that (i) expressly refers to this
Lease and (ii) is executed by the party against whom enforcement of the
change, abandonment, discharge or waiver is sought.

(d) Notwithstanding any provision of this Lease, or any
Law, to the contrary, or the execution of this Lease by Tenant, this Lease
shall not bind or benefit Landlord or Tenant, unless and until this Lease is
signed and delivered by both Landlord and Tenant.

(e) Tenant shall hold in confidence and shall not
disclose to third parties other than its officers, directors, partners,
members, employees, representatives, brokers, lenders, attorneys, accountants
and advisors, and shall cause its officers, directors, partners, members,
employees, representatives, brokers, lenders, attorneys, accountants and

 

 

advisers to hold in confidence and not disclose to third
parties, the terms of this Lease, except to the extent any such terms (i) must
be disclosed pursuant to any Law, (ii) are publicly known or becomes
publicly known other than through the acts of Tenant, or any of its officers,
directors, partners, members, employees, representatives, brokers, lenders,
attorneys , accountants or advisers, or

 

(iii) are disclosed by Tenant in connection
with any proposed financing, sale, subletting or assignment.

 

(f) The Exhibits to this Lease, if any, are a part of
this Lease, but, in the event of an inconsistency between this Lease and the
Exhibits, this Lease shall control.

(g) Each obligation of Tenant under this Lease is a
separate and independent covenant of Tenant, not dependent on any other
provision of this Lease.  There shall be
no presumption against Landlord because Landlord drafted this Lease or for any
other reason.

(h) Wherever appropriate in this Lease, personal
pronouns shall be considered to include the other gender and the singular to
include the plural.  The captions in this

 

130565.3
43

 

Lease are for reference
only and do not define the scope of this Lease or the intent of any term. All Article and
Section references in this Lease shall, unless the context otherwise
specifically requires, be deemed references to the Articles and Sections of
this Lease.

 

(i) If any provision of this Lease, or the application
thereof to any person or circumstance, is invalid or unenforceable, then in
each such event the remainder of this Lease or the application of such
provision to any other person or any other circumstance (other than those as to
which it is invalid or unenforceable) shall not be affected, and each provision
hereof shall remain valid and enforceable to the fullest extent permitted by
Law.

(j) If there is no Default, Tenant may peaceably and quietly
enjoy the Premises without hindrance by Landlord or any person lawfully
claiming under Landlord, subject however, to the terms of this Lease.

(k) If (i) Tenant is comprised of two or more persons,
or (ii) Tenant’s interest in this Lease is assigned to any person as
permitted by this Lease, “Tenant,” as used in this Lease, shall mean each of
those persons, and the liability of those persons under this Lease shall be
joint and several.

(l) If required in order to comply with the “rule against
perpetuities”, if the Commencement Date shall not occur within 21 years
following the date of this Lease, this Lease shall be deemed terminated.

 

 

 

In Witness Whereof, Landlord and Tenant have
executed this Lease on the date of this
Lease.

 

Landlord

 

	
   

  	
  I & G LEXINGTON, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: Income and Growth Fund III, its sole Member

  
	
   

  	
   

  
	
   

  	
  By: Jones Lang LaSalle, Inc., as agent for
  Income and Growth Fund III

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Nick Hayden

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   Name: Nick Hayden,

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Title:
  Vice President

  	
   

  
						

 

Tenant 

 

	
  FASTCLICK, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Kurt A. Johnson

  	
   

  	
   

  
	
  Name:
  Kurt A. Johnson

  	
   

  
	
  Title:
  CEO

  	
   

  
				

 

 

Exhibit A The Premises 

 

CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT

 

	
  State of California

  	
  }

  	
  ss.

  
	
   

  
	
  County of 

  	
  Santa Barbara

  
				

 

	
  On

  	
   May 16, 2005

  	
  , before me,

  	
    Cherise Beard, Notary Public

  	
   ,

  
	
   

  	
  Date

  	
   

  	
  Name and Title of Officer (e.g., “[ILLEGIBLE],
  Notary Public”)

  
	
  personally appeared

  	
   Kurt Johnson

  	
   ,

  
	
   

  	
  Name(s) of Signer(s)

  
	
   

  	
   

  
	
   

  	
  o personally known to
  me

  
	
   

  	
  ý proved to me on the
  basis of satisfactory evidence

  
	
   

  	
   

  
	
   

  	
  [SEAL]

  	
  C. CHERISE BEARD

  Commission # 1329311

  Notary Public - California

  Santa Barbara County

  My Comm. Expires Nov 10, 2005

  	
  to be the person whose name is subscribed to the within instrument
  and acknowledged to me that he executed the same in his authorized capacity,
  and that by his signature on the instrument the person, or the entity upon
  behalf of which the person acted, executed the instrument.

  
	
   

  	
   

  
	
   

  	
  WITNESS my hand and official seal.

  
	
   

  	
   

  
	
   

  	
  /s/ C. Cherise Beard

  
	
  Place Notary Seal Above

  	
  Signature of Notary Public

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  OPTIONAL

  	
   

  
	
  Though the information below is not
  required by law, it may prove valuable to persons relying on the document

  and could prevent fraudulent removal and reattachment of this form to another
  document.

  
	
   

  	
   

  
	
  Description of Attached Document

  	
   

  
	
  Title or Type of Document:

  	
   

  
	
   

  	
   

  
	
  Document Date:

  	
   

  	
   

  	
  Number of Pages:

  	
   

  
	
   

  	
   

  
	
  Signer(s) Other Than Named Above:

  	
   

  
	
   

  	
   

  
	
  Capacity(ies) Claimed by Signer

  	
   

  
	
  Signer’s Name:

  	
   

  	
   

  	
  RIGHT THUMBPRINT

  OF SIGNER

  
	
  o Individual

  	
   

  	
  Top of thumb here

  
	
  o Corporate Officer —
  Title(s):

  	
   

  	
   

  
	
  o Partner — o
  Limited o General

  	
   

  
	
  o Attorney in Fact

  	
   

  
	
  o Trustee

  	
   

  
	
  o Guardian or
  Conservator

  	
   

  
	
  o Other:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signer Is Representing:

  	
   

  	
   

  
																							

 

© 1999 National Notary
Association •
9350 De Soto Ave. P.O. Box 2402 •
Chatsworth, CA 91313-2402 •
www.nationalnotary.com  Prod No. 6907  [ILLEGIBLE]: Call Toll-Free 1-800-876-6827

 

 

 

Exhibit B INTENTIONALLY OMITTED 

 

 

47
NY-1222787v1 130565.3

 

Exhibit C  

 

Commencement Date Agreement 

 

AGREEMENT made as of the                
day of                  2005,
between I & G LEXINGTON, L.L.C., a New York limited liability company,
having an address in care of LaSalle Investment Management, 153 East 534d
Street, New York, NY 10002, as Landlord, and FASTCLICK, INC., a                        
corporation, having an address at                                  ,
as Tenant.

 

W I T N E S E T H:

 

WHEREAS, Landlord and Tenant have entered
into a Lease, dated as of                    ,
2005 (the “Lease”), pursuant to which Landlord leased to Tenant certain space
in the Building known as 370 Lexington Avenue, New York, New York  10017 (the “Building”) as more fully
described in the Lease; and

 

WHEREAS, pursuant to the provisions of the
Lease, the parties agreed to execute a written agreement confirming the
Commencement Date and the Fixed Expiration Date of the Lease.

 

NOW, THEREFORE, Landlord and Tenant confirm
that (i) the “Term” of the Lease has commenced on                   ,
2005, and that such date shall constitute the “Commencement Date” of the Lease
and (ii) the Term of the Lease will expire on                      ,
              ,
and that such date shall constitute the “Fixed Expiration Date” under the
Lease, as such quoted terms are defined in the Lease.

 

IN WITNESS WHEREOF, Landlord and Tenant have
respectively executed this Commencement Date Agreement as of the day and year
first above written.

 

I &
G LEXINGTON LLC,

Landlord,
a New York limited

liability
company

 

 

	
   

  	
  By: Income and Growth Fund III, its sole Member

  
	
   

  	
   

  
	
   

  	
   

  	
  By: Jones Lang LaSalle, Inc., as agent for

  
	
   

  	
   

  	
  Income and Growth Fund III

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   Name: Nick

  
	
   

  	
  Hayden, Title: Vice President

  
					

 

 

48

FASTCLICK, INC., Tenant, a                           
Corporation

 

	
  By:

  	
   

  	
   Name:
  Title:

  	
   

  

 

 

49
NY-1222787v1 130565.3

 

Exhibit D Cleaning

 

Specifications Daily

 

1.                                       1.                                       Empty all wastebaskets and damp wipe ashtrays. Remove trash
from wastebaskets and replace plastic lining. 
Plastic liners are to fit waste receptacles in such a manner as to not
overhang the top by more than two inches (2”). Replace old plastic liners no
less than one time per week and as necessary due to tears, odors or spillage.

2.                                       2.                                       Sweep all V.C.T. rubber and similar types of flooring using
an approved chemically treated cloth or dust mop (wet mop if spillage has
occurred). No stains, dirt, streaks or dust should be present at the start of
the Business Day.

3.                                       3.                                       Vacuum clean all carpeted areas one night per week

4.                                       4.                                       Hand dust and wipe clean all horizontal surfaces with
chemically treated cloth, including all furniture, files, cabinet fixtures,
windowsills, and convector enclosure tops, up to 84” high.

5.                                       5.                                       Dust all telephones

6.                                       6.                                       Dust all chairs, rail and trim.

7.                                       7.                                       Clean all water fountains and water coolers

8.                                       8.                                       Push tenant employees’ chairs to desks.

 

Weekly

 

1.                                       1.                                       Damp wipe all wastebaskets

2.                                       2.                                       Dust all baseboards

3.                                       3.                                       Hand dust all door louvers and other ventilating louvers
within reach.

4.                                       4.                                       Wipe clean all bright work.

 

50

 

Exhibit E Landlord’s Regulations 

 

1.                                       1. The sidewalks, and public portions of the Building, such
as entrances, passages, courts, elevators, vestibules, stairways, corridors or
halls shall not be obstructed or encumbered by any tenant or used for any
purpose other than ingress and egress to and from any premises.

2.                                       2. No awnings or other projections shall be attached to the
outside walls of the Building. No curtains, blinds, shades, louvered openings
or screens shall be attached to or hung in, or used in connection with, any
window or door of any premises, without the prior written consent of Landlord,
unless installed by Landlord.

3.                                       3. No sign, advertisement, object, notice or other lettering
shall be exhibited,

 

 

inscribed, painted or affixed by any tenant on any part of
the outside of any premises or Building or on windows or corridor walls, or be
readily visible from the street or any public atrium. Signs on entrance door or
doors shall conform to building standard signs, samples of which are on display
in Landlord’s rental office. Signs on doors shall, at the tenant’s expense, be
inscribed, painted or affixed for each tenant by sign makers approved by
Landlord. In the event of the violation of the foregoing by any tenant,
Landlord may remove same without any notice or liability, and may charge the
expense incurred by such removal to the tenant or tenants violating this rule.

4.                                       4. The sashes, sash doors, skylights, windows, heating,
ventilating and air conditioning vents and doors that reflect or admit light
and air into the halls, passageways or other public places in the Building
shall not be covered or obstructed by any tenant, nor shall any bottles,
parcels, or other articles be placed outside of any premises.

5.                                       5. No show cases or other articles shall be put in front of
or affixed to any part of the exterior of the Building, nor placed in the
public halls, corridors or vestibules, or be readily visible from the street or
any public atrium, without the prior written consent of Landlord.

6.                                       6. Whenever Tenant shall submit to Landlord any plan,
agreement or other document for Landlord’s consent or approval, Tenant agrees
to pay Landlord, on demand, a processing fee in a sum equal to the reasonable
fee for review of same including the services of any architect, engineer and/or
attorney employed by Landlord to review said plan, agreement or document.

7.                                       7. The water and wash closets and other plumbing fixtures
shall not be used for any purposes other than those for which they were
constructed, and no sweepings, rubbish, rags, or other substances shall be
thrown therein. All damages resulting from any misuse of the fixtures shall be
borne by the tenant who, or whose servants, employees, agents, visitors or
licensee, shall have caused the same.

8.                                       8. No tenant or occupancy shall mark, paint, drill into, or
in any way deface any part of the Building or the premises demised to such
tenant or occupant. No boring, cutting or stringing of wires shall be
permitted, except with the prior consent of Landlord, and as Landlord

 

51

may direct. No tenant or occupant shall
install any resilient tile or similar floor covering in the premises demised to
such tenant or occupant except in a manner approved by Landlord.

 

9. No bicycles, vehicles or animals of any kind
(except seeing eye dogs) shall be brought into or kept in or about the
premises. No cooking shall be done or permitted by Tenant on said premises. No
tenant shall cause or permit any unusual or objectionable odors to be produced
upon or emanate from any premises.

10. No space in the Building shall be used for the
manufacturing of merchandise.

2.                                       11. No tenant shall make, or permit to be made, any unseemly
or disturbing noises or disturb or interfere with occupants of the Building or
neighboring buildings or premises or those having business with them, whether
by the use of any musical instrument, radio, talking machine, unmusical noise,
whistling, singing, or in any other way. No tenant shall throw anything out of
the doors, or windows or down the passage ways.

 

 

3.                                       12. No tenant, nor any of the tenant’s servants, employees,
agents, visitors or licensees, shall at any time bring or keep upon any
premises any flammable, combustible or explosive fluid, material, chemical or
substances or aerosol containers, other than reasonable amounts of cleaning
fluids and solvents (stored in proper containers) required in the normal
operation of tenant’s business offices.

4.                                       13. No additional locks or bolts of any kind shall be placed
upon any of the doors or windows by any tenant, nor shall any changes be made
in existing locks or the mechanism thereof, without the prior written approval
of the Landlord and unless and until a duplicate key is delivered to Landlord.
Each tenant must, upon the termination of this tenancy, restore to the Landlord
all keys of stores, offices and toilet rooms, either furnished to, or otherwise
procured by, such tenant, and in the event of the loss of any keys, so
furnished, such tenant shall pay to Landlord the cost of replacement thereof.

5.                                       14. All removals, or the carrying in or out of any safes,
freight, furniture or bulky matter of any description must take place during
the hours which Landlord or its agent may determine from time to time. Landlord
reserves the right to inspect all freight and other material to be brought into
or out of the Building and to exclude from the Building all freight or other
material which violates any of these Regulations or the Lease of which these Regulations
are a part.

6.                                       15. No office tenant shall occupy or permit any portion of
the premises demised to it to be occupied as, by or for a public stenographer
or typist, barber shop, bootblacking, beauty shop or manicuring, beauty parlor,
telephone or telegraph agency, telephone or secretarial service, messenger
service, travel or tourist agency, employment agency, public restaurant or bar,
commercial document reproduction or offset printing services, public vending
machines, retail, wholesale or discount shop for display or sale of
merchandise, retail service shop, labor union, school or classroom,
governmental or quasi-governmental bureau, department or agency, including an
autonomous governmental corporation, a firm, the principal business of which is
real estate brokerage, or a company engaged in the business of renting office
or desk space; or for a public finance (personal loan) business, or for
manufacturing. No tenant shall engage or

 

52

pay any employees on any premises, except those
actually working for such tenant on said premises, nor advertise for laborers
giving an address at said premises.

 

1.                                       16. Landlord shall have the right to prohibit any advertising
by any tenant mentioning the Building which, in Landlord’s reasonable opinion,
tends to impair the reputation of the Building or its desirability as a
building for offices, and upon written notice from Landlord, tenants shall
refrain from or discontinue such advertising.

2.                                       17. In order that the Building can and will maintain a
uniform appearance to those outside of same, each Tenant in building perimeter
areas shall (a) use only building standard lighting in areas where
lighting is visible from the outside of the Building unless Landlord
specifically approves other lighting in writing and (b) use only building
standard venetian or vertical blinds in window areas which are visible from the
outside of the Building.

 

18. Landlord reserves the right to exclude from the Building between
the hours of 6:00 p.m. and 8:00 a.m. and at all hours on non-business
days all persons who do not

 

 

present a pass to the Building signed by a
tenant.  Each tenant shall be responsible
for all persons for whom such pass is issued and shall be liable to Landlord
for all acts of such persons.

 

1.                                       19. The premises shall not be used for lodging or sleeping or
for any immoral or illegal purpose.

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

3.                                       21. Tenants shall purchase from Landlord or its designee all
lighting tubes, lamps, bulbs and ballasts used in any premises and tenants
shall pay Landlord’s reasonable charges for providing and installing same, on
demand.

4.                                       22. Each tenant, before closing and leaving the premises
demised to such tenant at any time, shall see that all entrance doors are
locked and all windows closed.

5.                                       23. Each tenant shall, at its expense, provide artificial
light and electricity in the premises demised to such tenant for landlord’s
agents, contractors and employees while performing janitorial or other cleaning
services and making repairs or alterations on said premises.

6.                                       24. There shall be no canvassing, soliciting and peddling in
the Building are prohibited and each tenant shall cooperate to prevent the
same.

7.                                       25. There shall not be used in any space, or in the public
halls of the Building, either by any tenant or by jobbers or others, in the
delivery or receipt of merchandise, any hand trucks, except those equipped with
rubber tires and side guards.  No hand
trucks shall be used in passenger elevators.

8.                                       26. If the premises demised to any tenant become infested
with vermin such tenant, at its sole cost and expense, shall cause its premises
to be exterminated, from time to time, to the

 

53

satisfaction of Landlord, and shall employ such
exterminators therefor as shall be approved by Landlord.

 

1.                                       27. Replacement of ceiling tiles after they are removed for
Tenant by telephone or other similar installers, in both the premises and the
public corridors, will be charged to Tenant on a per tile basis.

2.                                       28. All movers used by any tenant shall be appropriately
licensed and shall maintain appropriate and adequate insurance coverage (proof
of such coverage shall be delivered to Landlord prior to movers performing
services in or about the Building.)  No
tenant shall move, or permit to be moved into or out of the Building or the
premises demised to such tenant, any heavy or bulky matter, without the
specific approval of Landlord, and if any such matter requires special
handling, only a person holding a Master Rigger’s license shall be employed to
perform such special handling. No tenant shall place, or permit to be placed,
on any part of the floor or floors of the premises demised to such tenant, a
load exceeding the floor load per square foot which such floor was designed to
carry and which is allowed by law. Landlord reserves the right to prescribe the
weight, position and method of weight distribution of safes and other heavy

 

 

matter, which must be placed so as to distribute the
weight.  All freight elevator charges and
other charges incurred by Tenant in connection with a move from the Building
shall be paid by Tenant not less than 5 days in advance.

3.                                       29. All paneling, decoration or other wood products not
considered furniture and draperies, carpeting and other furnishings shall be of
fire retardant materials. Before installation of any such materials,
certification of the materials, fire retardant characteristics shall be
submitted to Landlord, or its agents, in a manner satisfactory to the Landlord.

 

54

 

Exhibit F Standby Letter of
Credit 

 

	
   

  	
   

  	
  [Date]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Standby Letter of Credit No.              

  
	
  Beneficiary:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Applicant:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

Ladies and Gentlemen:

 

We hereby agree to pay the Beneficiary or the last
transferee Beneficiary the sum of $                       
in the currency of the United States of America, at sight, upon the
presentation of a copy of this Standby Letter of Credit and a written demand on
us containing the date of the demand, the amount of the demand and the number
of this Standby Letter of Credit.

 

This Standby Letter of Credit may be
transferred by the Beneficiary and any transferee Beneficiary.

 

If this Standby Letter of Credit is lost,
stolen, mutilated or destroyed we shall replace it.

 

This Standby Letter of Credit shall be
automatically extended for periods of one (1) year from the then relevant
expiry date through [three months following the Fixed Expiration Date], unless
you are notified by us in writing at least sixty (60) days prior to each annual
expiry date that this Standby Letter of Credit shall not be extended.

 

 

We hereby agree that demands made in
accordance with this Standby Letter of Credit shall be duly honored if
presented at our office at [must be in the City of New York], no later than the
then relevant expiry date, unless this date is automatically extended pursuant
to this Standby Letter of Credit, in which event such date shall be the then
relevant expiry date.

 

This Letter of Credit is subject to the
International Standby Practices 1998.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Authorized Signature

  

 

55

 

Exhibit G Approved Contractors 

 

 

56
NY-1222787v1 130565.3

 

Exhibit H  

 

Intentionally Omitted

 

 

57 NY-1222787v1 130565.3

 

Exhibit I  

 

Estoppel Certificate 

 

	
  To:

  	
   

  	
  I & G Lexington

  
	
   

  	
   

  	
  L.L.C. (“Landlord”)

  
	
   

  	
   

  	
   

  
	
  Re:

  	
   

  	
  370 Lexington Avenue, New York, NY 10017 (the “Property”)

  

 

The undersigned                             ,
a                             
(“Tenant”) is the tenant under that certain lease dated                                 
(the “Lease”), which Lease shall include the amendments, if any, referred to
below, by and between Tenant and Landlord, covering premises commonly known as Suite              
in the Property (the “Premises”). Tenant hereby certifies to the following as
of the date hereof:

 

1. Tenant is the tenant under the Lease
demising the Premises. The term of the Lease commenced on                                     
and will expire on                             .

 

2.                                       Tenant
certifies to Buyer that:

 

a. the Lease is in full force and effect and
has not been cancelled, modified, assigned, extended or amended except as
follows:

 

                                                      ;

 

•.b. Tenant is not aware of any renewal, extension or
expansion option, right of first offer or right of first refusal or other
similar right to renew or extend the term of the Lease or expand the property
demised thereunder except as may be expressly set forth herein or in the Lease;

•.c. the current monthly rent for the Premises as of                       
is $                  
and has been paid through                         ;

•.d. the total current additional/escalation rent for wage
rates, real estate taxes and the like (all charges other than fixed rent) as of
                              
is $                    
and is payable monthly;

•.e. Tenant is not in arrears on any rent or other material
charges payable by Tenant under the Lease;

•.f. Tenant has accepted and is occupying the Premises, and
the Premises have been completed by Landlord as required by the Lease without
defect;

•.g. the Lease has been neither assigned nor any portion of
the Premises subleased by Tenant except as follows:

 

58

 

 

                                                      ;

 

•.h. (i) Landlord has performed all of Landlord’s
obligations under the Lease to be performed by Landlord as of the date hereof, (ii) Landlord
is not in default under the Lease; and (iii) no event has occurred which,
with the giving of notice or the passage of time, or both, could result in a
default by Landlord;

•.i. Tenant has no existing defenses, offsets, deductions,
liens, claims or credits against the rentals under the Lease or against the
enforcement of the Lease by Landlord:

•.j. There exists no default on the part of Tenant nor state
of facts which, with the giving of notice or the passage of time, or both,
could result in a default by Tenant:

•.k. All contributions, if any, required to be paid by
Landlord under the Lease to date for improvements to the Premises have been
paid;

•.l. Tenant has paid a security deposit in the amount of $                       ,
on which no interest is payable; and

•.n. Tenant has no option or right to purchase all or any part
of the Premises or the Property.

 

1.                                       3. Tenant acknowledges and agrees that the addressees hereof
and their respective successors and assigns and the holder of any mortgage at
any time encumbering the Property from and after the date of this Estoppel
Certificate shall have the right to rely on this Estoppel Certificate.

2.                                       5. The undersigned is duly authorized to execute this
Estoppel Certificate on behalf of Tenant.

 

Dated this             
day of                        ,
               .

 

	
   

  	
  COMPANY NAME

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
   

  
	
   

  	
  Title:

  

 

 

59

Schedule 1 to Exhibit I

 

SCHEDULE OF AMENDMENTS
OR MODIFICATIONS

 

 

60
NY-1222787v1 130565.3

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