Document:

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                                                                  Exhibit 10.17

                               JV OPTION AGREEMENT

                              ROCK-FORTY-NINTH LLC

                                    Landlord

                                     -with-

                                 MSDW 745, LLC

                                     Tenant

                            Dated: November 19, 1998

                                   Premises:

              Land known as 745 Seventh Avenue, New York, New York

                THIS JV OPTION AGREEMENT MAY NOT BE MODIFIED OR
            AMENDED EXCEPT IN ACCORDANCE WITH SECTION 12 (b) HEREOF.

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                                TABLE OF CONTENTS

Agreement                                                                   Page
---------                                                                   ----

1.       Certain Definitions.  ................................................1

2.       Exercise of Option....................................................2

3.       Assignment............................................................5

4.       Arbitration; Disputes.................................................6

5.       Notices; Jurisdiction.................................................7

6.       Costs and Expenses....................................................8

7.       Name of Joint Venture.................................................9

8.       Continuing Leases.....................................................9

9.       Default...............................................................9

10.      Lease Options........................................................10

11.      Shared Capital Improvements.  .......................................13

12.      Miscellaneous Provisions.............................................18

13.      Bankruptcy Remote Entity.............................................19

1.       Defined Terms; Section References.  ................................A-1

2.       Co-Venturers........................................................A-1

3.       Purpose.............................................................A-2

4.       Principal Office....................................................A-2

5.       Initial Capital Contributions; Percentage Interests;
         Apportionments......................................................A-2

6.       Additional Capital Contributions; Advances to the Joint Venture.....A-9

7.       Distributions; Profits and Losses.  ...............................A-10

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8.       Control and Management.............................................A-11

9.       Duration...........................................................A-17

10.      Transfer of Interests..............................................A-17

11.      Disputes; Buy-Sell.  ..............................................A-25

12.      Withdrawal or Bankruptcy...........................................A-29

13.      Tax Matters........................................................A-29

14.      Borrowing..........................................................A-30

15.      Outside Transactions...............................................A-30

16.      Fair Market Value..................................................A-30

17.      Limit of Liability.................................................A-32

18.      Leasing Agent......................................................A-32

19.      Affiliate Contracts................................................A-34

20.      Events of Default; Remedies........................................A-34

21.      Estoppel Certificates.  ...........................................A-37

22.      Cooperation by Venturers...........................................A-37

23.      Other Terms........................................................A-37

                                       ii

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                               JV OPTION AGREEMENT

                  THIS JV OPTION AGREEMENT (this "AGREEMENT") made as of the
19th day of November, 1998 between ROCK-FORTY-NINTH LLC, a Delaware limited
liability company, having an office c/o Rockefeller Group, Inc., 1221 Avenue of
the Americas, New York, New York 10022 (and its permitted successors and
assigns, "LAND OWNER"), and MSDW 745, LLC, a Delaware limited liability company
(and its permitted successors and assigns, "BUILDING OWNER"), having an office
at 1585 Broadway, New York, New York 10036.

                              W I T N E S S E T H :
                              - - - - - - - - - -

                  WHEREAS, Land Owner and Building Owner have, on the date
hereof, entered into a Ground Lease (as amended, restated, supplemented or
otherwise modified from time to time, the "GROUND LEASE") for the lease of
certain land known as 745 Seventh Avenue, New York, New York (the "LAND") upon
the terms and conditions more particularly set forth in the Ground Lease;

                  WHEREAS, subject to the terms of the Ground Lease, Building
Owner shall construct, maintain and operate the Building (as defined in the
Ground Lease) on the Land;

                  WHEREAS, Land Owner and Building Owner have agreed that each
party shall have an option, exercisable in the manner set forth below, to cause
Land Owner to contribute and convey the Land and all of Land Owner's interest in
the Ground Lease to Building Owner on January 1, 2032 (the "OPTION EFFECTIVE
DATE") in exchange for Land Owner being admitted as a fifty percent (50%) owner
in Building Owner;

                  WHEREAS, if Land Owner or Building Owner exercises such
option, from and after the Option Effective Date, Land Owner and Building Owner
Member (as defined in Exhibit A hereto) shall be equal co-venturers in the Joint
Venture (hereinafter defined), all upon the terms more particularly set forth
herein.

                  NOW, THEREFORE, for good and valuable consideration, the
sufficiency of which the parties hereby acknowledge, the parties agree as
follows:

1.       CERTAIN DEFINITIONS.

         1.       Certain capitalized terms used herein and in EXHIBIT A annexed
                  hereto shall be defined on the pages indicated on Annex I
                  hereto, which is hereby incorporated by reference.

         2.       All other capitalized terms used herein without definition
                  shall have the respective meanings ascribed to them in the
                  Ground Lease.

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         3.       For all purposes in this Agreement (including EXHIBIT A
                  hereto), the term "BUILDING OWNER" shall mean MSDW 745, LLC
                  (and its successors and assigns permitted hereunder) as of any
                  date prior to the Option Effective Date and the formation of
                  the Joint Venture and the term "JOINT VENTURE" shall refer to
                  MSDW 745, LLC (and its successors and assigns permitted
                  hereunder) as such name may be modified in accordance with the
                  terms hereof or the JVA as of any date on and after the Option
                  Effective Date.

         4.       The term "PROJECT" shall mean all of the Land Owner's and
                  Building Owner's respective interests in the Land, the
                  Building and the Ground Lease.

2.       EXERCISE OF OPTION. The options set forth herein shall be exercised as
         follows:

         1.       On or after December 1, 2027, but prior to June 1, 2028, time
                  being of the essence with respect thereto, Land Owner shall
                  have the option, upon written notice to Building Owner, to
                  require Building Owner to admit Land Owner as a fifty percent
                  (50%) owner in Building Owner in exchange for the conveyance
                  by Land Owner of the Land and all of Land Owner's interest in
                  the Ground Lease to Building Owner, subject to and in
                  accordance with the terms of this Agreement. Failure to so
                  timely elect shall be deemed a waiver of Land Owner's option
                  to so elect.

         2.       If Land Owner has not exercised its option as set forth in
                  SECTION 2(A), on or after September 1, 2028, but prior to
                  March 1, 2029, time being of the essence with respect thereto,
                  Building Owner shall have the option, upon written notice to
                  Land Owner to require Land Owner to convey the Land and all of
                  Land Owner's interest in the Ground Lease to Building Owner in
                  exchange for the admission of Land Owner as a fifty (50%)
                  owner in Building Owner, subject to and in accordance with the
                  terms of this Agreement. Failure to so timely elect shall be
                  deemed a waiver of Building Owner's option to so elect.

         3.       Within ninety (90) days after the exercise of either of the
                  options set forth in SECTIONS 2(A) or 2(B), above, unless the
                  parties agree otherwise, Building Owner shall deliver to Land
                  Owner a form of amended and restated Operating Agreement for
                  Building Owner (the "JVA") setting forth the terms upon which
                  the Joint Venture shall be operated from and after the Option
                  Effective Date. The JVA shall incorporate the terms and
                  conditions set forth on EXHIBIT A annexed hereto, and such
                  other terms which are mutually agreeable to the parties or
                  which are determined by arbitration as provided herein. Within
                  such ninety (90) day period, Building Owner shall also deliver
                  to Land Owner, to the extent not previously provided to Land
                  Owner or its Affiliates, copies of the documents described in
                  clauses (i) and (ii) below together with schedules or
                  statements containing the information described in clauses
                  (iii), (iv) and (v) below (collectively, the "DUE DILIGENCE
                  DOCUMENTS"):

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         1.       Unaudited copies of the most recent financial statements of
                  Building Owner, certified by Building Owner, or, if previously
                  prepared by or for Building Owner, audited copies of such
                  financial statements (it being understood that Building Owner
                  shall be under no obligation to cause audited financial
                  statements to be prepared), together with statements of cash
                  flow as well as such other information about the operations
                  and financial condition of Building Owner as Land Owner shall
                  reasonably request and as shall be in Building Owner's
                  possession or control (collectively, the "FINANCIAL
                  STATEMENTS"). Each of the Financial Statements shall be dated
                  as of a date which is not more than twelve (12) months prior
                  to the date the same are delivered to Land Owner.

         2.       All material contracts, abstracts of insurance policies
                  (abstracting all terms and conditions relating to the Project)
                  and other material documents and agreements to which Building
                  Owner is a party, or which benefit or burden Building Owner or
                  the Building and are in Building Owner's possession or
                  control, and which will not be terminated as of the Option
                  Effective Date.

         3.       A description of all litigation and arbitration, pending or
                  threatened in writing, to Building Owner's knowledge, against
                  Building Owner or the Building.

         4.       A list of employees of Building Owner and their positions and
                  salaries.

         5.       A statement as to the organizational structure of the Building
                  Owner.

         The Due Diligence Documents shall be accompanied by a certificate of
         Building Owner, dated as of the date on which the Due Diligence
         Documents are delivered (a "DUE DILIGENCE CERTIFICATE") stating that
         (x) the Financial Statements required to be delivered to Land Owner
         pursuant to clause (i) above are, to Building Owner's best knowledge,
         true, accurate and complete in all material respects as of the date
         made (which date shall not be more than twelve (12) months prior to the
         date the same are delivered to Land Owner) and that, to Building
         Owner's best knowledge, there have been no material adverse changes to
         the matters set forth therein since the date thereof (or alternatively,
         setting forth any such material adverse change in reasonable detail),
         (y) that the schedules and other information required to be delivered
         to Land Owner pursuant to clauses (iii), (iv) and (v) above are true,
         accurate and complete in all material respects, and (z) Building Owner
         has delivered to Land Owner true and complete copies of all documents
         required to be delivered to Land Owner pursuant to clause (ii) above.

4.       Building Owner shall deliver to Land Owner annually, within ten (10)
         Business Days after the anniversary of the date on which either of the
         options in Section 2(a) or Section 2(b) was exercised but not after the
         Option Effective Date, updated Financial Statements, dated not more
         than twelve (12) months prior to the date of delivery, and other Due
         Diligence Documents to the extent not previously

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         delivered or necessary to reflect changes to prior Due Diligence
         Documents previously delivered, and an updated Due Diligence
         Certificate with respect to the items so delivered. In addition to the
         annual updates referred to in the previous sentence, on the Option
         Effective Date, Building Owner shall deliver updated Financial
         Statements, dated not more than twelve (12) months prior to the date of
         delivery, and other Due Diligence Documents to the extent not
         previously delivered or necessary to reflect changes to prior Due
         Diligence Documents previously delivered and an updated Due Diligence
         Certificate, and thereafter, within ninety (90) days after the Option
         Effective Date, Building Owner shall deliver Financial Statements as of
         the Option Effective Date accompanied by a Due Diligence Certificate
         with respect to such Financial Statements dated as of the date that
         such Financial Statements are delivered. Notwithstanding anything
         contained herein to the contrary, Land Owner shall be under no
         obligation to transfer its interest in the Land to Building Owner as
         provided herein until Building Owner has delivered to Land Owner all
         material Due Diligence Documents and Due Diligence Certificates
         required pursuant to Section 2(c) above and this Section 2(d) to the
         extent required to be delivered on or before the Option Effective Date
         (it being understood and agreed that Building Owner shall not be in
         default hereunder and Land Owner shall be not be entitled to refuse to
         transfer its interest in the Land by reason of any previous failure of
         Building Owner to timely deliver such Due Diligence Documents and Due
         Diligence Certificates as required hereunder unless Land Owner notified
         Building Owner of such failure and such failure has not been remedied
         on or prior to the Option Effective Date).

5.       Land Owner and Building Owner shall, in the ninety (90) day period
         succeeding the date of delivery of the JVA pursuant to SECTION 2(C),
         negotiate in good faith the terms of the JVA, subject to the terms of
         this Agreement and EXHIBIT A hereto. Any dispute relating to the terms
         and provisions of the JVA which is not resolved by the end of such
         ninety (90) day period shall be submitted to arbitration for resolution
         pursuant to SECTION 4, below.

6.       On the Option Effective Date, the following shall simultaneously occur

         1.       Land Owner shall convey the Land and all of Land Owner's
                  interest in the Ground Lease to Building Owner by Bargain and
                  Sale Deed with Covenant against Grantor's Acts;

         2.       The JVA shall be executed and delivered by Land Owner and
                  Building Owner Member and Land Owner shall be admitted
                  pursuant thereto as a 50% owner in the Joint Venture in
                  accordance with the terms of this Agreement and the JVA;

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         3.       Land Owner and Building Owner shall prepare, execute and
                  deliver such transfer tax and other forms and documents which
                  are reasonably required to effect the transaction contemplated
                  hereby; and

         4.       Land Owner and Building Owner shall each pay their respective
                  costs and expenses pursuant to SECTION 6 below.

3.       ASSIGNMENT.

         1.       This Agreement shall not be assigned by either party hereto,
                  except that this Agreement shall be assigned by the respective
                  party hereto (and shall be assumed by the party accepting such
                  assignment) in connection with an assignment made in
                  accordance with the terms of the Ground Lease of all of Land
                  Owner's or Building Owner's respective interest in the Land,
                  the Building and the Ground Lease, it being understood that
                  this Agreement and the terms, conditions, covenants,
                  provisions and undertakings herein contained shall at all
                  times be binding solely upon and inure solely to the benefit
                  of Land Owner and Building Owner, and any subsequent Landlord
                  and Tenant under the Ground Lease, except as provided in
                  clause (b) below.

         2.       Notwithstanding anything contained in SECTION 3(A), above, in
                  the event that the interest of Land Owner in the Land or the
                  interest of Building Owner in the Building is, at any time,
                  acquired by the holder of a lien on such interest, whether
                  through foreclosure, deed-in-lieu of foreclosure, power of
                  sale or other such proceedings, or is acquired by any other
                  purchaser at or in connection with such foreclosure or other
                  proceedings, the option set forth in SECTION 2 hereof of the
                  party whose interest is so acquired shall automatically and
                  without notice terminate, and such holder or other purchaser,
                  and its successors or assigns, shall not succeed to the right
                  to exercise such option upon acquiring such interest, it being
                  understood that the party whose interest is not so acquired
                  shall continue to have the right to exercise its option under
                  SECTION 2 hereof, and such holder or other purchaser, and its
                  successors and assigns, shall be bound by the terms,
                  conditions, covenants provisions and undertakings herein
                  contained to be performed or observed by the party whose
                  interest is so acquired.

4.       ARBITRATION; DISPUTES. Any dispute relating to the terms and provisions
         of the JVA shall be resolved by arbitration in the Borough of
         Manhattan, City and State of New York, pursuant to the Commercial
         Arbitration Rules then prevailing for the American Arbitration
         Association, or any successor organization ("AAA") and pursuant to the
         procedure below:

         1.       Within ten (10) Business Days following the giving of a demand
                  for arbitration, Land Owner and Building Owner shall each give
                  notice to the other setting forth the name and address of an
                  arbitrator designated by the party giving such notice.

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                  The two arbitrators shall conduct a hearing and then issue a
                  joint determination within thirty (30) days after the
                  appointment of both arbitrators. If either party fails to give
                  notice of its designation within said ten (10) Business Days,
                  and such failure continues beyond five (5) Business Days after
                  notice from the non-failing party stating in boldface
                  capitalized letters that such failure to designate an
                  arbitrator within such five (5) Business Day period will
                  result in the non-failing party's right to seek the
                  appointment by AAA or a court of a single arbitrator who will
                  resolve the dispute, then the non-failing party may apply to
                  AAA for the designation of a single arbitrator and if AAA
                  fails to designate such single arbitrator within ten (10)
                  Business Days after a request therefor, such non-failing party
                  may apply to the Supreme Court in New York County or to any
                  other court having jurisdiction for the designation of such
                  arbitrator and the determination of such single appointed
                  arbitrator shall control.

         2.       If the two designated arbitrators are unable to agree upon
                  resolution of the dispute within such thirty (30) day period,
                  then the two arbitrators shall designate a third impartial
                  arbitrator. If the two arbitrators shall fail to agree upon
                  the designation of a third arbitrator within five (5) days
                  after the expiration of such thirty (30) day period, then
                  either party may apply to the AAA for the designation of the
                  third arbitrator and if the AAA is unable or refuses to
                  designate such third arbitrator within ten (10) Business Days
                  after application to the AAA for such designation, then either
                  party may apply to the Supreme Court in New York County or to
                  any other court having jurisdiction for the designation of
                  such arbitrator.

         3.       The parties shall then conduct a hearing before all three
                  arbitrators, not to exceed ten (10) days. The dispute shall be
                  resolved by a majority of the three (3) arbitrators within
                  thirty (30) days after termination of the hearing, but if two
                  (2) arbitrators cannot agree, then the third impartial
                  arbitrator's determination shall prevail.

         4.       The determination as specified herein shall be binding upon
                  the parties, and a judgment thereon may be entered in and
                  enforced by any court of competent jurisdiction, provided that
                  any decision rendered in any arbitration held pursuant to this
                  SECTION shall be final and binding upon Land Owner and
                  Building Owner, whether or not a judgment shall be entered in
                  any court.

         5.       All of the arbitrators selected pursuant to this SECTION shall
                  be lawyers having at least ten (10) years current experience
                  in negotiating operating agreements, partnership agreements or
                  joint venture agreements for the ownership, of first-class
                  office space in New York County.

         6.       Each party shall pay the fees and expenses of its own legal
                  counsel, witnesses, experts and consultants, and the costs
                  relating to the submission of its evidence, if any, in
                  connection with any arbitration under this SECTION, including
                  the expenses and fees of any arbitrator selected by it in
                  accordance with the provisions of this

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                  SECTION, and the parties shall share equally all other
                  expenses and fees of any third arbitrator.

         7.       The arbitrators shall be instructed that their determination
                  of any dispute relating to additional JVA terms and provisions
                  not set forth in EXHIBIT A annexed hereto shall be based
                  solely on what is then customarily included in a joint venture
                  agreement for a joint venture owning a first-class office
                  building in Manhattan which is comparable to the Building,
                  between joint venturers with equal interests therein and
                  consistent with the intent of this Agreement. The arbitrators
                  shall be bound by the provisions of this Agreement and shall
                  not add to, subtract from, or otherwise modify this Agreement.

5.       NOTICES; JURISDICTION.

         1.       All notices (collectively, "NOTICES" and individually, a
                  "NOTICE") which are required or desired to be given by either
                  party to the other shall be in writing. All notices by either
                  party to the other shall be sent by nationally recognized
                  overnight carrier to the other party at its address set forth
                  below or personally delivered (with receipt acknowledged) to
                  such address or at such other or additional address as it may
                  from time to time designate in a notice to the other party,
                  but in no event shall a party be required to deliver notices
                  to more than two (2) addressees.

         If to Building Owner:

                  MSDW 745, LLC
                  c/o Morgan Stanley & Co. Incorporated
                  1633 Broadway
                  New York, New York 10019
                  Attention: Principal, Corporate Real Estate and Facilities
                             Management

                  With a copy to:

                  Morgan Stanley & Co. Incorporated
                  1633 Broadway
                  New York, New York 10019
                  Attention: Vice President, Corporate Real Estate and
                             Facilities Management

         If to Land Owner:

                  Rock-Forty-Ninth LLC
                  c/o The Rockefeller Group
                  1221 Avenue of the Americas
                  New York, New York 10020
                  Attention: President

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                  With a copy to:

                  Rock-Forty-Ninth LLC
                  c/o The Rockefeller Group
                  1221 Avenue of the Americas
                  New York, New York 10020
                  Attention: Secretary

         2.       Notices which are served upon Land Owner, Building Owner in
                  the manner aforesaid shall be deemed to have been given or
                  served for all purposes hereunder on the date of actual
                  receipt as evidenced by a receipt therefor, and in the event
                  of a failure to deliver by reason of changed address of which
                  no notice was given or refusal to accept delivery, as of the
                  date of such failure. All notices to Guarantor must be given
                  in accordance with the Guaranty.

         3.       The parties hereby confer exclusive jurisdiction upon the
                  Supreme Court of New York, New York County (or any successor
                  court of similar jurisdiction) with respect to any judicial
                  action or proceeding arising out of this Agreement.

6.       COSTS AND EXPENSES. If Land Owner or Building Owner exercises its
         option provided in SECTION 2 above, the parties shall share equally the
         cost of any transfer and similar taxes, title insurance and a then
         current "ALTA" survey for the Project in connection with the exercise
         of such option, the transfer of the fifty percent (50%) interest in
         Building Owner to Land Owner and the transfer of the Land and all of
         Land Owner's interest in the Ground Lease to Building Owner. Each party
         shall individually bear all of its other costs incurred in connection
         with the consummation of the transactions contemplated by the exercise
         of such option, including, without limitation, any costs expended by
         the respective parties in complying with the terms of SECTION 5(A) and
         (5)(B) of EXHIBIT A. Moreover, each party shall bear the cost of its
         own counsel in connection with the preparation and execution of the
         JVA.

7.       NAME OF JOINT VENTURE. If Land Owner or Building Owner exercises its
         option provided in SECTION 2 above, upon the Option Effective Date the
         Joint Venture shall change its name to a name mutually acceptable to
         Land Owner and Building Owner, which name shall reflect that Land Owner
         and Building Owner Member are equal co-venturers in the Joint Venture,
         provided, however, that at the election of either Land Owner or
         Building Owner Member the name of the Joint Venture shall not reflect
         the name of either of Land Owner or Building Owner Member, or in any
         way be more favorable to one Venturer than to the other Venturer.

8.       CONTINUING LEASES. Any Sublease of space in the Building, or any
         modification or extension thereof, which has a term, including any
         renewal options, which extends beyond the Option Effective Date shall
         be subject to the prior consent of Land Owner, which consent shall not
         be unreasonably withheld provided said Sublease is on market terms,
         demises at least one full floor of the Building and the proposed
         subtenant has

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         financial strength reasonably adequate to perform its obligations under
         said Sublease (or reasonable security or guaranties are provided)
         consistent with current practices in the marketplace for Comparable
         Buildings. Notwithstanding the foregoing, Land Owner's rejection of a
         Sublease to a Governmental Authority shall be deemed reasonable. Land
         Owner's consent shall be given or denied within fifteen (15) Business
         Days of its receipt of a term sheet describing the material economic
         terms in reasonable detail and reasonably acceptable evidence of the
         Subtenant's or a guarantor's financial strength (unless reasonable
         security is provided). Provided Land Owner fails to respond in such
         fifteen (15) Business Day period, Building Owner shall have the right
         to deliver a Deemed Approval Notice, and if Land Owner shall fail to
         respond within five (5) Business Days thereafter, such Sublease shall
         be deemed approved. (Any such Sublease approved, or deemed approved, by
         Land Owner pursuant to this SECTION 8 is hereby referred to
         individually, as a "CONTINUING LEASE," and collectively, the
         "CONTINUING LEASES").

9.       DEFAULT. If either party shall default in the performance of its
         obligations under this Agreement, it shall be liable to the other party
         for all damages, losses, liabilities, costs and expenses suffered or
         incurred by the other party by reason of such default, including,
         without limitation, reasonable attorney's fees and disbursements. In
         addition to seeking damages, either party may pursue any other remedy
         that may be available to such party at law or in equity, including
         without limitation the remedy of specific performance.

10.      LEASE OPTIONS.

         1.       Land Owner, Building Owner and Morgan Stanley & Co.
                  Incorporated ("MS") have, simultaneously herewith, entered
                  into an Option to Lease Space (the "MS LEASE OPTION"), whereby
                  MS or its Affiliate has the option to lease space in all or a
                  portion of the Building from the Joint Venture upon the
                  formation thereof, all as more particularly described in the
                  MS Lease Option (any such lease entered into by MS or an
                  Affiliate of MS pursuant to the MS Lease Option being referred
                  to as the "MS LEASE").

         2.       Land Owner, or, at Land Owner's election, an Affiliate of Land
                  Owner, is hereby granted an option ("LAND OWNER'S LEASE
                  OPTION"), which may be exercised only if MS has affirmatively
                  exercised its right to lease space in the Building pursuant to
                  the MS Lease Option, to lease one (1) full floor or two (2)
                  full floors of space available in the Building, all on the
                  terms set forth below:

                  1.       Land Owner's Lease Option may be exercised within
                           ninety (90) days after the Election Withdrawal Date
                           (I.E. June 30, 2029, as such date is defined in, and
                           may be extended pursuant to, the MS Lease Option),
                           time being of the essence with respect thereto.
                           During such period Land Owner may elect to exercise
                           Land Owner's Lease Option by written notice to the
                           Building Owner identifying the space (subject to
                           CLAUSES (ii)(1) and (2) below) and the proposed term
                           of such lease (subject to CLAUSE (ii)(3)

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                           below). Land Owner shall not be deemed to have
                           permanently waived its right to exercise the option
                           contemplated by this SECTION 10(B) unless and until
                           (A) Land Owner fails to timely exercise Land Owner's
                           Lease Option as set forth above and (B) either (x)
                           the Initial Election Notice (as such term is defined
                           in the MS Lease Option) contains in boldface
                           capitalized letters a reminder that "LAND OWNER'S
                           FAILURE TO TIMELY EXERCISE ITS OPTION TO LEASE SPACE
                           PURSUANT TO SECTION 10(B) OF THE JV OPTION AGREEMENT
                           WITHIN NINETY (90) DAYS FOLLOWING THE ELECTION
                           WITHDRAWAL DATE WILL RESULT IN THE WAIVER OF LAND
                           OWNER'S RIGHTS UNDER THAT SECTION" or (y) Building
                           Owner delivers a separate reminder notice to Land
                           Owner at any time after the giving of the Initial
                           Election Notice which contains the language set forth
                           in clause (x) above and Land Owner fails to
                           affirmatively exercise its option under this SECTION
                           10(B) on or before the later of (I) ninety (90) days
                           after the Election Withdrawal Date and (II) if
                           Building Owner delivers the reminder notice pursuant
                           to clause (y) above (as opposed to clause (x)), five
                           (5) Business Days after delivery of that reminder
                           notice.

                  2.       The Land Owner's Lease Option shall be:

                           (1)      for one (1) or two (2) full floors of space
                                    in the Building which floors (if Land Owner
                                    exercises its option with respect to two (2)
                                    floors) shall be contiguous to the extent
                                    available, except as otherwise reasonably
                                    required by Building Owner, subject to
                                    Building Owner's reasonable approval of the
                                    location of such space, it being understood
                                    that if such space consists of two (2)
                                    floors, to the extent available and
                                    practicable, Building Owner Member shall
                                    endeavor to locate such two (2) floors in
                                    the same elevator bank;

                           (2)      subject to the availability of space in the
                                    Building at the time Land Owner exercises
                                    Land Owner's Lease Option (provided that
                                    Building Owner shall be entitled to deem
                                    space to be unavailable if it is vacant or
                                    is reasonably anticipated by Building Owner
                                    to become vacant more than six (6) months
                                    prior to the Option Effective Date); and

                           (3)      for a lease term of between five (5) and
                                    fifteen (15) years, commencing on the Option
                                    Effective Date (but in no event shall such
                                    term extend beyond the term of the MS
                                    Lease), subject to any then existing future
                                    possessory or expansion right of MS, an
                                    Affiliate of MS or any third party.

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                  3.       Building Owner shall send Land Owner a notice within
                           thirty (30) days after the exercise by Land Owner of
                           Land Owner's Lease Option either confirming that the
                           floor(s) selected by Land Owner pursuant to clause
                           (i) above are available for lease by Land Owner and
                           approved by Building Owner or stating that one or
                           both of such floors are not available for lease by
                           Land Owner or not reasonably approved by Building
                           Owner and indicating which floor(s), if any, are
                           available for lease by Land Owner and approved by
                           Building Owner. If Building Owner fails to send such
                           notice within said thirty (30) day period, Land Owner
                           shall be entitled to send a reminder notice to
                           Building Owner containing the same information as is
                           required to be contained in Landlord's notice
                           exercising its Land Owner's Lease Option, with a
                           statement, in bold capitalized letters, that the
                           floor(s) selected by Land Owner shall be deemed
                           approved by Building Owner unless Building Owner
                           notifies Land Owner of its objections within five (5)
                           Business Days. If Building Owner fails to so notify
                           Land Owner of its objections within said five (5)
                           Business Day period, the floor(s) selected by Land
                           Owner shall be deemed to have been approved by
                           Building Owner. In the event that Building Owner
                           notifies Land Owner that one or both of the floor(s)
                           selected by Land Owner are not available or not
                           reasonably approved by Building Owner, Land Owner
                           shall, within ten (10) Business Days after Building
                           Owner so notifies Land Owner of the location of the
                           available floor(s), give a notice to Building Owner
                           stating that it either (x) accepts the floor(s)
                           offered by Building Owner (or if Land Owner exercised
                           its option for two (2) floors and Building Owner
                           identified two (2) floors which were available and
                           approved, Land Owner shall indicate that it accepts
                           both, or if the floors indicated by Building Owner
                           are not contiguous, either of such floors, or if
                           Building Owner has given Land Owner more than one
                           alternative, Land Owner shall indicate which floor(s)
                           it has elected to take), (y) rejects the floor(s)
                           offered by Building Owner and withdraws the exercise
                           of its Land Owner's Lease Option (in which event Land
                           Owner shall have no more rights pursuant to this
                           SECTION 10(B)), or (z) disputes Building Owner's
                           position that one or both of the floors selected by
                           Land Owner is unavailable or that Building Owner has
                           acted reasonably in disapproving Land Owner's
                           indicated floor(s), in which case such dispute shall
                           be resolved in accordance with the provisions of
                           SECTION 10(B)(V) above. If the dispute is arbitrated
                           and Building Owner prevails, Land Owner shall not be
                           entitled to withdraw its exercise of Land Owner's
                           Lease Option and shall be required to lease the space
                           designated by Building Owner.

                  4.       Any lease entered into by Land Owner (or its
                           Affiliate) pursuant to Land Owner's Lease Option
                           shall have a rental equal to 95% of the then fair
                           market rent for the space and shall be upon such
                           other terms and conditions as set forth in the MS
                           Lease Option, except that (x) Land Owner (or its
                           Affiliate) shall only be entitled to those additional
                           services

                                       11
<Page>

                           and rights which, under the MS Lease Option, would
                           have been provided to a tenant which is leasing
                           and/or occupying the amount of space which Land Owner
                           (or its Affiliate) will lease and/or occupy, (y) the
                           level of services and rights granted to Land Owner
                           (or its Affiliate), as tenant, shall at Land Owner's
                           election be less than that required by MS under the
                           MS Lease, and (z) the provisions set forth in SECTION
                           2(A) of the MS Lease Option and the provisions of
                           SECTION 17, SECTION 26 and the last sentence of
                           SECTION 27 of Exhibit A of the MS Lease Option shall
                           not apply to Land Owner (or its Affiliate).

                  5.       Any dispute concerning the terms of the lease with
                           Land Owner (or its Affiliate) which has not been
                           resolved within thirty (30) days after the delivery
                           of Land Owner's notice set forth in SECTION 10(b)(i),
                           above shall be resolved by arbitration pursuant to
                           the terms of SECTION 6 of the MS Lease Option.

                  6.       Though the Land Owner's Lease Option set forth herein
                           shall be self-operative, upon either party's request,
                           Land Owner and Building Owner shall execute and
                           deliver, with respect thereto, an instrument
                           confirming the terms thereof, a recordable memorandum
                           of the same, and any further documents reasonably in
                           furtherance of the terms of this SECTION 10(B).

                  7.       In no event shall the Leasing Agent be entitled to
                           any commission or other fee in connection with space
                           leased by Land Owner or its Affiliate in the Building
                           pursuant to this SECTION 10(B) or otherwise.

                  8.       Fair market rent shall be determined in the same
                           manner as provided in the MS Lease Option. Pending
                           any determination of fair market rent, Land Owner
                           shall pay, as rent, an amount based upon the rent per
                           square foot of rentable area payable under the MS
                           Lease, subject to adjustment in the same manner as
                           provided in the MS Lease Option.

11.      SHARED CAPITAL IMPROVEMENTS.

         1.       Building Owner Member shall be entitled to reimbursement for a
                  portion of certain capital improvements made to the Building
                  by Building Owner in accordance with the provisions of this
                  SECTION 11.

         2.       Subject to the terms of this SECTION 11, Land Owner shall
                  reimburse Building Owner Member for fifty percent (50%) of the
                  Reimbursable Amount (as hereinafter defined) for Shared
                  Capital Improvements to the extent paid for by Building Owner
                  prior to the Option Effective Date. Subject to the terms of
                  this SECTION 11, in the case of any Shared Capital
                  Improvements which are commenced prior to the Option Effective
                  Date and not completed prior thereto ("INCOMPLETE SHARED
                  CAPITAL IMPROVEMENTS"), the Reimbursable Amount for

                                       12
<Page>

                  such Incomplete Shared Capital Improvements shall mean the
                  amount of costs actually paid by Building Owner to perform the
                  same on or prior to the Option Effective Date and the Joint
                  Venture shall be responsible for the completion of such
                  Incomplete Shared Capital Improvements and the costs incurred
                  by the Joint Venture to do so shall constitute Joint Venture
                  expenses.

3.       The following terms shall have the meanings set forth below:

         1.       "DEPRECIABLE LIFE" shall mean the period (which is not in
                  violation of any Legal Requirements) which is the greater of
                  (i) the period over which said Shared Capital Improvement was
                  or will actually be depreciated on Building Owner's annual tax
                  returns or (ii) the period over which said Shared Capital
                  Improvement was or will actually be depreciated on Building
                  Owner's financial books.

         2.       "SHARED CAPITAL IMPROVEMENT" shall mean any capital
                  improvement, repair or replacement to the Project (i) which
                  has an individual cost exceeding an amount equal to $1,000,000
                  (such amount, as increased pursuant to the further provisions
                  hereof, is the "THRESHOLD AMOUNT"), increased by a fraction,
                  the numerator of which is the CPI on the date of the
                  installation of such Shared Capital Improvement and the
                  denominator of which is the CPI on the date of this Agreement,
                  but in no event shall such Threshold Amount exceed $5,000,000;
                  (ii) the installation of which is commenced within the seven
                  (7) Lease Years prior to the Option Effective Date; and (iii)
                  which is reasonably required to comply with Building Owner's
                  obligations, as Tenant, under SECTION 8.2 and SECTION 11.1 of
                  the Ground Lease.

4.       The cost of any Shared Capital Improvement (other than any Incomplete
         Shared Capital Improvement), subject to Land Owner's right to dispute
         the reasonableness thereof as set forth below, shall be amortized over
         its Depreciable Life from the date of completion of such Shared Capital
         Improvement with interest at the Prime Rate. The portion, if any, of
         the cost of such Shared Capital Improvement (with interest as provided
         above) which has not been amortized pursuant to the preceding sentence
         as of the Option Effective Date as agreed to (or deemed agreed to)
         between Land Owner and Building Owner or as determined by arbitration
         pursuant to SECTION 11(D)(II) below shall be herein referred to as the
         "REIMBURSABLE AMOUNT":

         1.       Building Owner shall provide Land Owner written notice of the
                  proposed Shared Capital Improvement, which notice (the
                  "REIMBURSEMENT NOTICE") may be given before or after the
                  commencement of any Shared Capital Improvement, but no later
                  than the Option Effective Date, and shall include (a) a
                  description of the improvement, (b) preliminary specifications
                  for such improvement, (c) the reason for such improvement,

                                       13
<Page>

                  (d) for informational purposes only, the estimated cost of
                  undertaking the improvement and (e) for informational purposes
                  only, an estimate of the improvement's Depreciable Life.

         2.       Land Owner shall have the right to give a notice to Building
                  Owner within thirty (30) days after its receipt of any
                  Reimbursement Notice objecting to the same only if Land Owner
                  believes in good faith that the improvement described therein
                  does not satisfy the definition of Shared Capital Improvement.
                  Any such notice from Land Owner shall specify in reasonable
                  detail the reasons for Land Owner's objection. If Land Owner
                  fails to give such objection notice within such thirty (30)
                  day period, Building Owner shall have the right to deliver to
                  Land Owner a Deemed Approval Notice, and if Land Owner shall
                  fail to respond within five (5) Business Days thereafter, the
                  improvement described in such Reimbursement Notice and Deemed
                  Approval Notice shall be deemed to be a Shared Capital
                  Improvement. If Land Owner timely gives such objection notice,
                  and the dispute is not resolved within thirty (30) days after
                  the giving of such objection notice, the dispute shall be
                  submitted to arbitration in accordance with the provisions set
                  forth in ARTICLE 33 of the Ground Lease, and the resulting
                  determination shall be binding on the Land Owner and Building
                  Owner.

         3.       Following the completion of the Shared Capital Improvement,
                  other than any Incomplete Shared Capital Improvement, Building
                  Owner shall provide Land Owner with notice (the "COST
                  NOTICE"), which Cost Notice shall include (a) the cost of the
                  improvement, (b) the actual Depreciable Life over which the
                  Shared Capital Improvement is being or will be depreciated on
                  the Building Owner's annual tax returns or on the Building
                  Owner's financial books, and (c) Building Owner's proposed
                  Reimbursable Amount for such Shared Capital Improvement (it
                  being understood that Land Owner cannot object to the
                  Depreciable Life). On the Option Effective Date, Building
                  Owner shall also notify Land Owner in a Cost Notice of the
                  actual cost paid by Building Owner to date for any Incomplete
                  Shared Capital Improvements.

         4.       Land Owner shall have the right to give a notice (the "COST
                  OBJECTION") to Building Owner within thirty (30) days after
                  its receipt of any Cost Notice objecting to the same only if
                  Land Owner believes in good faith that the cost of such
                  improvement as specified in the Cost Notice is more than five
                  percent (5%) in excess of the reasonable cost which should
                  have been reasonably incurred to complete such improvement (or
                  in the case of any Incomplete Shared Capital Improvement, if
                  Land Owner believes in good faith that the costs set forth in
                  the applicable Cost Notice were not actually paid by Building
                  Owner, or that the contracted costs for the Incomplete Shared
                  Capital Improvement (i.e. contracted costs paid to date plus

                                       14
<Page>

                  contracted cost to complete) is more than 5% in excess of the
                  reasonable cost which should have been reasonably contracted
                  therefor) or that Building Owner has made a mathematical
                  mistake in calculating the Reimbursable Amount. Any Cost
                  Objection shall specify in reasonable detail the reasons for
                  Land Owner's objection (including, without limitation, (x)
                  with respect to Shared Capital Improvements other than
                  Incomplete Shared Capital Improvements the amount that Land
                  Owner believes in good faith is the reasonable cost which
                  should have been reasonably incurred to complete such
                  improvement, and (y) with respect to any Incomplete Shared
                  Capital Improvement, the amount that Land Owner believes in
                  good faith was actually paid by Building Owner for such
                  Incomplete Shared Capital Improvement on or prior to the
                  Option Effective Date or, if applicable, the cost that should
                  have been reasonably contracted for such Incomplete Shared
                  Capital Improvement).

         5.       (A) In the case of any Shared Capital Improvement other than
                  any Incomplete Shared Capital Improvements, the difference
                  between the cost of the improvement as specified in the Cost
                  Notice and Land Owner's good faith determination of the
                  reasonable cost of the improvement as set forth in the Cost
                  Objection or (B) in the case of any Incomplete Shared Capital
                  Improvement, the difference between the actual costs paid by
                  Building Owner as specified in the Cost Notice and the amount
                  that Land Owner believes in good faith was actually paid, in
                  either case shall be referred to herein as the "DISPUTED
                  AMOUNT" and any dispute concerning the Disputed Amount which
                  is not resolved within thirty (30) days after the delivery of
                  the Cost Objection shall be submitted to arbitration for
                  resolution pursuant to the provisions of Article 33 of the
                  Ground Lease.

         6.       If Land Owner fails to deliver a Cost Objection within such
                  thirty (30) day period, Building Owner shall have the right to
                  deliver to Land Owner a Deemed Approval Notice, and if Land
                  Owner shall fail to respond within five (5) Business Days
                  thereafter, the Cost Notice shall be deemed approved by Land
                  Owner.

         7.       (A) If Land Owner fails to timely deliver a Cost Objection in
                  accordance with clauses (iv) and (vi) above with respect to a
                  Shared Capital Improvement, then Land Owner shall reimburse
                  Building Owner Member for 50 % of the Reimbursable Amount for
                  such Shared Capital Improvement on the later of (x) the Option
                  Effective Date and (y) ten (10) Business Days after the
                  expiration of the five (5) Business Day Period after a Deemed
                  Approval Notice has been delivered by Building Owner in
                  accordance with clause (vi) above.

                  (B) If Land Owner timely delivers a Cost Objection in
                  accordance with clause (iv) or (vi) above with respect to any
                  Shared Capital Improvement,

                                       15
<Page>

                  then Land Owner shall reimburse Building Owner Member for 50%
                  of the Reimbursable Amounts, less any Disputed Amounts, in
                  respect of such Shared Capital Improvement on the later of (x)
                  the Option Effective Date and (y) ten (10) Business Days after
                  the date the applicable Cost Objection is timely given. If
                  Land Owner timely delivers a Cost Objection with respect to
                  any Shared Capital Improvement and the dispute is not resolved
                  within ten (10) Business Days after the giving of such Cost
                  Objection, either party may submit the dispute to arbitration
                  in accordance with the provisions set forth in ARTICLE 33 of
                  the Ground Lease and the resulting determination shall be
                  binding on Land Owner and Building Owner. Any amounts
                  determined to be payable by the resolved arbitration shall be
                  payable to Building Owner Member on the later of (1) the
                  Option Effective Date or (2) the date which is ten (10)
                  Business Days after the resolution of the arbitration,
                  together with interest thereon at the Prime Rate from the date
                  on which such amount would otherwise have been paid.

                  (C) If Land Owner timely delivers a Cost Objection with
                  respect to any Incomplete Shared Capital Improvement objecting
                  that Land Owner believes in good faith that the contracted
                  costs for such Incomplete Shared Capital Improvement are more
                  than 5% in excess of the reasonable cost which should have
                  been reasonably contracted therefor (which Cost Objection
                  includes the cost that Land Owner believes in good faith
                  should have been reasonably contracted therefor) and such
                  dispute is not resolved within thirty (30) days after the
                  delivery of such Cost Objection, such dispute shall be
                  submitted to arbitration for resolution pursuant to the
                  provisions of ARTICLE 33 of the Ground Lease. If pursuant to
                  such arbitration it is determined that the amount that should
                  have been reasonably contracted for such Incomplete Shared
                  Capital Improvement exceeds the actual contracted costs for
                  such Incomplete Shared Capital Improvement pursuant to
                  Building Owner's contracts therefor entered into prior to the
                  Option Effective Date (the amount of such excess with respect
                  to any such Incomplete Shared Capital Improvement is called a
                  "CONTRACT EXCESS"), upon the completion of such Incomplete
                  Shared Capital Improvement and the payment by the Joint
                  Venture of all costs for such completion, the Land Owner shall
                  be entitled to a credit in an amount equal to 50% of the
                  Contract Excess for such Incomplete Shared Capital
                  Improvement, which credit shall be paid in accordance with
                  SECTION 7 of EXHIBIT A attached hereto.

         5.       Nothing in this SECTION shall be deemed to affect Building
                  Owner's right to perform any improvement, repair or
                  replacement it may desire to perform (subject to the terms of
                  the Ground Lease) without giving any Reimbursement Notice or
                  Cost Notice to Land Owner. Further, if Building Owner does
                  elect to give a Reimbursement Notice or Cost Notice to Land
                  Owner with respect to any such

                                       16
<Page>

                  improvement, repair or replacement and Land Owner timely
                  objects to the same in accordance with this SECTION, nothing
                  in this SECTION shall be deemed to affect Building Owner's
                  right to perform the same without waiting for the resolution
                  of such dispute.

         6.       For informational purposes only, Building Owner shall deliver
                  to Land Owner true copies of the Building's capital budget for
                  each Lease Year in which neither RCMC nor any other Affiliate
                  of Land Owner was the property manager of the Project
                  commencing with the thirty-second (32nd) Lease Year.

12.      MISCELLANEOUS PROVISIONS.

         1.       The failure of either party to insist in any one or more cases
                  upon the strict performance of any of the terms, covenants,
                  conditions, provisions or agreements of this Agreement, or to
                  exercise any option herein contained, shall not be construed
                  as a waiver or a relinquishment for the future of any such
                  term, covenant, condition, provision, agreement or option.

         2.       This Agreement may not be changed or terminated orally but
                  only by an agreement in writing signed by the party against
                  whom enforcement of the change or termination is sought. THE
                  GUARANTY PROVIDES IN PART THAT GUARANTOR IS NOT BOUND BY ANY
                  MODIFICATION OR AMENDMENT TO THIS AGREEMENT OR THE JVA WHICH
                  INCREASE THE OBLIGATIONS OR DECREASE THE RIGHTS OF BUILDING
                  OWNER OR BUILDING OWNER MEMBER HEREUNDER UNLESS GUARANTOR
                  SHALL HAVE CONSENTED TO SUCH MODIFICATION OR AMENDMENT IN
                  WRITING.

         3.       This Agreement shall be governed by, and construed and
                  enforced in accordance with, the laws of the State of New York
                  and without aid of any canon or rule of law requiring
                  construction against the party drawing or causing this
                  Agreement or any provision thereof to be drawn.

         4.       All terms and words used in this Agreement, regardless of the
                  number or gender in which they are used, shall be deemed to
                  include any other number, or any other gender, as the context
                  may require.

         5.       The terms "herein," "hereby," "hereof," "hereunder," and words
                  of similar import, shall be construed to refer to this
                  Agreement as a whole, and not to any particular Article or
                  SECTION, unless expressly so stated.

         6.       The provisions of this Agreement shall not be construed for
                  the benefit of any third party, except as otherwise provided
                  herein.

                                       17
<Page>

         7.       THE PARTIES HERETO HEREBY KNOWINGLY WAIVE ANY RIGHT TO A TRIAL
                  BY JURY FOR ANY DISPUTE ARISING IN CONNECTION WITH THIS
                  AGREEMENT.

         8.       The section headings of this Agreement (including EXHIBIT A
                  annexed hereto) are for convenience and reference only, and in
                  no way define, limit or describe the scope or intent of this
                  Agreement, nor in any way affect this Agreement.

         9.       Each of the options provided in SECTIONS 2(A) and 2(B) hereof
                  are being granted in connection with the Ground Lease and
                  therefore the parties believe such options are not subject to
                  the Rule Against Perpetuities (the "RULE"). Nonetheless, the
                  parties agree that to avoid any violation of such Rule, to the
                  extent either option is deemed subject thereto, each such
                  option must be exercised, if at all, on or before the date
                  which is 21 years following the death of the last to die of
                  Governor Hugh Carey and the descendants of John D.
                  Rockefeller, Jr. and any of their respective descendants who
                  are lives in being as of the date of this Agreement.

13.      BANKRUPTCY REMOTE ENTITY. Each of the covenants and agreements
         contained in Sections 1.4, 3.1, 3.2, 3.5, 3.6 and 7.1 of the Limited
         Liability Company Agreement of Land Owner, Paragraphs 3, 4, 5 and 6 of
         the Amended and Restated Certificate of Formation of Land Owner,
         Articles 2, 6, 7 and 8 of the Certificate of Incorporation of
         Rock-Forty-Ninth, Inc., as amended by the Certificate of Amendment of
         the Certificate of Incorporation of Rock-Forty-Ninth Inc., and Articles
         2, 6, 7 and 8 of the Certificate of Incorporation of Rock-Plaza, Inc.
         (collectively, the "SPE Covenants") are hereby incorporated herein by
         reference as if fully set forth herein for the benefit of Building
         Owner. Each of Land Owner, Rock-Forty-Ninth, Inc. and Rock-Plaza, Inc.
         hereby covenant and agree to comply, at all times, with the SPE
         Covenants contained in their respective organizational documents and
         Rock-Forty-Ninth, Inc. and Rock-Plaza, Inc. further covenant and agree
         to cause Land Owner to comply, at all times, with the SPE Covenants
         contained in the Limited Liability Company Agreement and Amended and
         Restated Certificate of Formation of Land Owner. Land Owner shall not,
         at any time prior to the termination of the Landlord Pledge, without
         Building Owner's prior consent, amend or modify or permit the amendment
         or modification of any of the so-called "separateness covenants"
         contained in the organizational documents of Land Owner and Land
         Owner's respective members or any other provisions contained therein
         which would impair the ability of Building Owner to enforce its rights
         as pledgee under the Landlord Pledge.

                                       18
<Page>

                  IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement as of the day and year first above written.

                                       LAND OWNER:

                                       ROCK-FORTY-NINTH LLC
                                       By:  Rock-Forty-Ninth, Inc., its Member

                                       By: /s/ Gwen A. Rowden
                                          --------------------------------------
                                          Name:  Gwen A. Rowden
                                          Title: Vice President

                                       BUILDING OWNER:

                                       MSDW 745, LLC
                                       By: MS Financing Inc., Member

                                       By: /s/ Owen D. Thomas
                                          --------------------------------------
                                          Name:  Owen D. Thomas
                                          Title: Vice President

IF BUILDING OWNER OR LAND OWNER EXERCISES ITS OPTION IN ACCORDANCE WITH SECTION
2 OF THIS AGREEMENT, BUILDING OWNER MEMBER AGREES TO CAUSE LAND OWNER TO BE
ADMITTED AS A 50% OWNER IN BUILDING OWNER IN ACCORDANCE WITH THE TERMS OF THIS
AGREEMENT, INCLUDING THE EXECUTION AND DELIVERY OF THE JVA BY BUILDING OWNER
MEMBER.

BUILDING OWNER MEMBER:

MS FINANCING INC.

By: /s/ Owen D. Thomas
   -----------------------
Name:  Owen D. Thomas
Title: Vice President

THE UNDERSIGNED ENTITIES AGREE TO BE BOUND BY THE PROVISIONS OF SECTION 13
HEREOF:

ROCK-FORTY-NINTH, INC.                             ROCK-PLAZA, INC.

By: /s/ Gwen A. Rowden                             By: /s/ Gwen A. Rowden
   ------------------------                           --------------------------

                                       19
<Page>

                                    EXHIBIT A

                              MATERIAL TERMS OF JVA

14.      DEFINED TERMS; SECTION REFERENCES.

         1.       Terms used in this EXHIBIT A without definition shall have the
                  respective meanings ascribed to them in the Agreement to which
                  this EXHIBIT A is annexed (the "AGREEMENT"), or if not so
                  defined, as such terms are defined in the Ground Lease.

         2.       Any section references contained in this Exhibit A shall refer
                  to other sections in this EXHIBIT A, unless specifically
                  stated otherwise.

15.      CO-VENTURERS. The sole initial parties (individually, a "VENTURER," and
         collectively, the "VENTURERS") of the Joint Venture shall be Land Owner
         and the owner(s) of all of the interests in Building Owner immediately
         prior to the Option Effective Date (the "BUILDING OWNER MEMBER") (or
         their successors and assigns permitted hereunder). No Venturer nor the
         Joint Venture shall be responsible or liable for any indebtedness or
         obligation of the other Venturer incurred either before or after the
         execution of the JVA, except that the Joint Venture shall be bound by
         and be responsible for the following matters (collectively, the
         "CONTINUING PROJECT OBLIGATIONS"):

         1.       any joint responsibilities, liabilities, indebtedness or
                  obligations incurred pursuant to and as limited by the terms
                  of the JVA; and

         2.       obligations arising on or after the Option Effective Date
                  under all of the following: (a) Continuing Leases, brokerage
                  agreements and construction and other contracts relating
                  thereto; (b) the MS Lease, if any; (c) the Ground Lease; (d)
                  any contracts entered into by Building Owner prior to the
                  Option Effective Date so long as the same are terminable upon
                  not more than thirty (30) days' notice without payment of any
                  penalty or otherwise approved in writing by Land Owner; (e)
                  any customary union contracts affecting the Project; (f) any
                  lease entered into by Land Owner or an Affiliate of Land Owner
                  pursuant to the Land Owner's Lease Option; (g) the Permitted
                  Exceptions and other easements, permits, approvals, covenants
                  and restrictions entered into by Building Owner in accordance
                  with the terms of the Ground Lease; (h) construction and other
                  contracts and other obligations relating to Incomplete Shared
                  Capital Improvements; and (i) any other obligation or
                  agreement approved by Land Owner in writing as being a
                  Continuing Project Obligation.

                                      A-1
<Page>

16.      PURPOSE. The purpose of the Joint Venture will be to own, manage,
         lease, mortgage, operate, alter and dispose of the Project and to
         engage in such other activities, and to enter into such agreements, as
         may be necessary or advisable in connection with the promotion or
         conduct of the business of the Joint Venture or the Project. The Joint
         Venture shall not engage in any other business without the consent of
         all of the Venturers.

17.      PRINCIPAL OFFICE. The principal place of business of the Joint Venture
         shall be located at the principal office of the Operating Venturer in
         New York City.

18.      INITIAL CAPITAL CONTRIBUTIONS; PERCENTAGE INTERESTS; APPORTIONMENTS.

         1.       On the Option Effective Date, Land Owner shall contribute to
                  the Joint Venture its fee interest in the Land and all of its
                  right, title and interest in, to and under the Ground Lease
                  and all rights relating to the Land and the Ground Lease, free
                  and clear of all liens, claims and encumbrances, subject only
                  to the Permitted Exceptions, the Ground Lease and any matters
                  created or otherwise consented to in writing by Building
                  Owner.

         2.       On the Option Effective Date, Building Owner shall cause the
                  Building, the Building Equipment and all rights relating
                  thereto to be free and clear of all liens, claims and
                  encumbrances, subject only to the Continuing Project
                  Obligations and such other matters created or otherwise
                  consented to in writing by Land Owner. The following
                  additional provisions shall apply to the Building:

                  1.       On the Option Effective Date, Building Owner shall
                           cause the Building to be in compliance in all
                           material respects with all Requirements (other than
                           any Requirements then being contested in accordance
                           with the Ground Lease) and otherwise in working
                           order, condition and repair in accordance with the
                           standard set forth in Section 11.1 of the Ground
                           Lease, subject only to reasonable wear and tear. With
                           respect to any non-compliance with the Requirements
                           which is not material as of the Option Effective Date
                           (other than any Requirements then being contested in
                           accordance with the Ground Lease), Building Owner
                           Member shall, promptly after the Option Effective
                           Date, at its sole cost and expense, take whatever
                           action may be reasonably necessary to cure such
                           non-compliance; provided, however, that if such
                           non-compliance would not exist but for the existence
                           of an Incomplete Shared Capital Improvement, the
                           completion of such Incomplete Shared Capital
                           Improvement shall be the responsibility of the Joint
                           Venture and the costs incurred in connection
                           therewith shall be expenses of the Joint Venture
                           other than any fines and penalties arising as a
                           result of the late commencement or delayed
                           prosecution thereof prior to the Option Effective
                           Date which shall be paid by Building Owner Member
                           (unless such fines and penalties resulted from delays
                           caused by force majeure, in which case they shall be
                           borne by the Joint Venture). Building Owner Member
                           shall have the right to continue contesting any such

                                      A-2
<Page>

                           contested Requirements and, if it is determined that
                           the Joint Venture must comply with the same, Building
                           Owner Member shall, at its sole cost and expense,
                           take whatever action may be reasonably necessary to
                           comply therewith. The Joint Venture and Land Owner
                           shall, at Building Owner Member's sole cost and
                           expense, reasonably cooperate with Building Owner
                           Member in connection with this clause. Any tenant
                           improvements constructed by or on behalf of Building
                           Owner, any machinery, apparatus and equipment
                           excluded from "Building Equipment" pursuant to clause
                           (i) of the definition of "Building Equipment" in the
                           Ground Lease, all personal property of Building Owner
                           and all licenses, permits, guaranties, warranties,
                           plans, specifications, and other intangible property
                           of Building Owner which are not required for the
                           operation of the Building or the Building Equipment
                           and all cash on hand and any other claims, awards,
                           proceeds and accounts receivable which are not
                           apportioned in accordance with SECTION 5(B)(II)
                           hereof, any rights or claims of Building Owner
                           against Land Owner or its Affiliates under the
                           Affiliate Contracts or the Ground Lease and any other
                           obligations of Building Owner which do not constitute
                           Continuing Project Obligations shall be transferred
                           and assigned by Building Owner to, and assumed by,
                           Building Owner Member or its Affiliates without any
                           liability to Land Owner or the Joint Venture. The
                           Joint Venture and Land Owner shall execute such
                           instruments as may be reasonably necessary to effect
                           any such transfer.

                  2.       All rents under the Continuing Leases and all
                           expenses of the Land and the Building shall be
                           apportioned between Building Owner Member and the
                           Joint Venture as of 11:59 p.m. of the day immediately
                           preceding the Option Effective Date. Such prorated
                           expenses shall include without limitation the
                           following:

                  (1)      taxes and assessments levied against the Land or the
                           Building;

                  (2)      utility charges, such charges to be apportioned on
                           the Option Effective Date on the basis of the most
                           recent meter reading occurring prior to the Option
                           Effective Date (dated not more than thirty (30) days
                           prior to the Option Effective Date) or, if unmetered,
                           on the basis of a current bill for each such utility;

                  (3)      inventory and supplies;

                  (4)      fees and expenses payable or receivable under any
                           Continuing Project Obligation; and

                  (5)      leasing commissions, costs of tenant improvements,
                           work allowances and base building work performed for
                           a tenant relating to the initial term or renewal term
                           in effect on the Option Effective

                                      A-3
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                           Date of any Continuing Lease, which have been paid by
                           Building Owner before the Option Effective Date (the
                           "Apportioned Continuing Lease Costs"), each of which
                           shall be amortized over such term on a straight-line
                           basis and apportioned accordingly; provided however,
                           any credit resulting to the Building Owner Member
                           hereunder shall not be paid on the Option Effective
                           Date, but shall be paid in accordance with SECTION 7
                           hereof. With respect to similar items payable after
                           the Option Effective Date, the same shall be paid by
                           the Joint Venture, and amortized and apportioned in
                           the same manner as provided above, and 50% of any
                           resulting credit to the Joint Venture shall be paid
                           to Land Owner in accordance with SECTION 7 hereof.
                           Notwithstanding the foregoing, any leasing
                           commissions, costs of tenant improvements, work
                           allowances and base building work relating to
                           Continuing Leases and payable with respect to a
                           renewal term commencing after the Option Effective
                           Date or with respect to any expansion space added to
                           the premises after the Option Effective Date or
                           arising out of any amendments, modifications or
                           separate agreements entered into after the Option
                           Effective Date shall be expenses of the Joint Venture
                           and not be part of any credit owed to the Joint
                           Venture.

         3.       Notwithstanding anything to the contrary contained above:

                  (1)      On the Option Effective Date, any security deposits
                           actually held by Building Owner pursuant to any
                           Continuing Leases (to the extent such security
                           deposits have not been applied against delinquent
                           rents or otherwise as provided in the Continuing
                           Leases) shall be transferred to a new bank account
                           established by the Joint Venture for the purpose of
                           holding tenant security deposits.

                  (2)      Any taxes paid at or prior to the Option Effective
                           Date shall be prorated based upon the amounts
                           actually paid. If taxes due and payable during the
                           year in which the Option Effective Date occurs have
                           not been paid before the Option Effective Date,
                           Building Owner Member shall be responsible for that
                           portion of such taxes which relates to the period
                           before the Option Effective Date and the Joint
                           Venture shall be responsible for the portion of such
                           taxes which relates to the period from and after the
                           Option Effective Date. Any such apportionment made
                           with respect to a tax year for which the tax rate or
                           assessed valuation, or both, have not yet been fixed
                           shall be based upon the tax rate and/or assessed
                           valuation last fixed. To the extent that the actual
                           taxes for the year of the Option Effective Date
                           differ from the amount apportioned as of the Option
                           Effective Date, the parties shall make all necessary
                           adjustments by

                                      A-4
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                           appropriate payments between themselves within thirty
                           (30) days after such amounts are determined following
                           the Option Effective Date. Assessments shall be
                           equitably apportioned between Building Owner Member
                           and the Joint Venture.

                  (3)      The following provisions shall apply to any unpaid or
                           delinquent rent under any Continuing Leases:

                           (1)      Unpaid and delinquent rent under any
                                    Continuing Leases collected by Building
                                    Owner Member or the Joint Venture after the
                                    Option Effective Date shall be applied as
                                    follows: all rent received by Building Owner
                                    Member or the Joint Venture after the Option
                                    Effective Date shall be applied (A) first,
                                    to the month in which the Option Effective
                                    Date occurs, which rent shall be apportioned
                                    between Building Owner Member and the Joint
                                    Venture as provided above; (B) second, to
                                    Building Owner Member, all rent accruing
                                    within the first thirty (30) days preceding
                                    the Option Effective Date; (C) third, to the
                                    Joint Venture, any delinquent rents for any
                                    period after the month in which the Option
                                    Effective Date occurs; and (D) fourth, to
                                    Building Owner Member, any delinquent rents
                                    for any period prior to the first (30) days
                                    preceding the Option Effective Date.
                                    Building Owner Member shall be entitled to
                                    receive all rents collected by Building
                                    Owner Member or the Joint Venture after the
                                    Option Effective Date which relate to any
                                    leases which expired or were terminated
                                    prior to the Option Effective Date.

                           (2)      The Joint Venture will make a good faith
                                    effort after the Option Effective Date to
                                    collect all rents in the usual course of the
                                    Joint Venture's operation of the Building.
                                    Building Owner may attempt to collect any
                                    delinquent rents owed Building Owner and may
                                    institute any lawsuit or collection
                                    procedures, but may not evict any tenant. In
                                    the event that there shall be any rents or
                                    other charges under any leases which,
                                    although relating to a period prior to the
                                    Option Effective Date, do not become due and
                                    payable until after the Option Effective
                                    Date or are paid prior to the Option
                                    Effective Date but are subject to adjustment
                                    after the Option Effective Date (such as
                                    year end common area expense reimbursements
                                    and the like), then any rents or charges of
                                    such type received by the Joint Venture or
                                    its agents or Building Owner Member or its
                                    agents subsequent to the Option Effective
                                    Date shall, to the extent applicable

                                      A-5
<Page>

                                    to a period extending through the Option
                                    Effective Date, be prorated between Building
                                    Owner Member and the Joint Venture as of the
                                    Option Effective Date and Building Owner
                                    Member's portion thereof shall be remitted
                                    promptly to Building Owner Member by the
                                    Joint Venture and the Joint Venture's
                                    portion thereof, if received by the Building
                                    Owner Member, shall be remitted promptly to
                                    the Joint Venture by the Building Owner
                                    Member.

                           (3)      If Building Owner Member collects any unpaid
                                    or delinquent rent for the Building,
                                    Building Owner Member shall, within fifteen
                                    (15) days after the receipt thereof, deliver
                                    to the Joint Venture any such rent which the
                                    Joint Venture is entitled to hereunder and
                                    if the Joint Venture collects any unpaid or
                                    delinquent rent for the Building, the Joint
                                    Venture shall, within fifteen (15) days
                                    after the receipt thereof, deliver to
                                    Building Owner Member any such rent which
                                    Building Owner Member is entitled to
                                    hereunder.

                           (4)      Building Owner Member may file an appeal of
                                    the real property tax assessment in respect
                                    of the Project, and may take related action
                                    which Building Owner Member deems
                                    appropriate in connection therewith for any
                                    tax year through and including the tax year
                                    in which the Option Effective Date occurs;
                                    provided, however, (x) from and after the
                                    Option Effective Date, the Joint Venture
                                    shall have the right and obligation to
                                    continue diligently to prosecute any contest
                                    commenced by Building Owner for the
                                    reduction of real property taxes or
                                    assessments relating to the Project for the
                                    tax year in which the Option Effective Date
                                    occurs (the "PRESENT TAX CONTEST"), and (y)
                                    subject to Building Owner Member's approval,
                                    not to be unreasonably withheld or delayed
                                    (and which approval shall be deemed given if
                                    Building Owner Member shall not object
                                    thereto within fifteen (15) Business Days
                                    after request therefor by the Joint Venture
                                    and the Joint Venture gives a Deemed
                                    Approval Notice to Building Owner Member
                                    after said fifteen (15) Business Day period,
                                    and Building Owner Member shall not object
                                    thereto within five (5) Business Days after
                                    the giving of said Deemed Approval Notice),
                                    the Joint Venture shall have the right to
                                    settle or discontinue the Present Tax
                                    Contest. If there shall be any refund of the
                                    taxes which are the subject of such pending
                                    Present Tax Contest, such refund, together
                                    with any interest thereon paid by the taxing
                                    authority, shall be paid first, to Building
                                    Owner Member and the Joint Venture in
                                    respect of the expenses incurred by the
                                    Building Owner prior to the Option Effective
                                    Date and by the Joint Venture after the
                                    Option Effective

                                      A-6
<Page>

                                    Date in obtaining such refund, second to
                                    tenants in respect of refunds payable to
                                    tenants of the Building pursuant to their
                                    leases and third, the balance of such refund
                                    shall be apportioned between the Joint
                                    Venture and Building Owner Member. Subject
                                    to the terms set forth below, Building Owner
                                    Member shall own and hold all right, title
                                    and interest in and to any appeal and refund
                                    of real property taxes paid with respect to
                                    any tax year prior to the tax year in which
                                    the Option Effective Date occurs and the
                                    Joint Venture and Land Owner shall execute
                                    such instruments as may be necessary or
                                    reasonably desirable to transfer such right,
                                    title and interest to Building Owner Member.
                                    After the Option Effective Date, Building
                                    Owner Member shall not settle any contest
                                    for the reduction of real property taxes or
                                    assessments relating to the Project for any
                                    tax year prior to the tax year in which the
                                    Option Effective Date occurs without the
                                    Land Owner's prior consent, which consent
                                    shall not be unreasonably withheld or
                                    delayed and shall be deemed granted if,
                                    within fifteen (15) business days after
                                    Building Owner Member's delivery of a notice
                                    requesting such approval, the Land Owner
                                    shall fail to object by notice to Building
                                    Owner Member and such failure shall continue
                                    for an additional five (5) Business Days
                                    after a Deemed Approval Notice is given to
                                    the Land Owner. Any refund attributable to
                                    tax years prior to the tax year in which the
                                    Option Effective Date occurs shall be the
                                    sole property of the Building Owner Member.
                                    Any dispute under this clause (4) shall be
                                    settled by arbitration.

                           (5)      Except as otherwise provided herein, any
                                    revenue or expense amount which cannot be
                                    ascertained with certainty as of the Option
                                    Effective Date shall be prorated on the
                                    basis of the parties' reasonable estimates
                                    of such amount, and shall be the subject of
                                    a final proration within one hundred eighty
                                    (180) days after the Option Effective Date,
                                    or as soon thereafter as the precise amounts
                                    can be ascertained. The Joint Venture shall
                                    promptly notify Building Owner Member when
                                    it becomes aware that any such estimated
                                    amount has been ascertained. Once all
                                    revenue and expense amounts have been
                                    ascertained, the Joint Venture shall
                                    prepare, and certify as correct, a final
                                    proration statement which shall be subject
                                    to Building Owner Member's approval, such
                                    approval not to be unreasonably withheld or
                                    delayed. Upon Building Owner Member's
                                    acceptance and approval of any final
                                    proration statement submitted by the Joint
                                    Venture, such statement shall be
                                    conclusively deemed to be accurate and
                                    final.

                           (6)      If pursuant to the apportionments provided
                                    herein, a net amount is owed by Building
                                    Owner Member, then Building Owner Member

                                      A-7
<Page>

                                    shall pay such amount to the Joint Venture
                                    on the Option Effective Date, or if a net
                                    amount is owed by the Joint Venture, then
                                    Land Owner shall pay to Building Owner
                                    Member 50% of such net amount on the Option
                                    Effective Date. This CLAUSE (6) shall not
                                    apply to credits derived under SECTION
                                    5(B)(II)(5), which shall be paid in
                                    accordance with SECTION 7(A) below.

                           (7)      The JVA shall contain provisions whereby
                                    Building Owner Member shall indemnify the
                                    Joint Venture (and its officers, directors,
                                    members, shareholders, partners, trustees,
                                    beneficiaries, agents and employees) from
                                    and against any and all claims, demands,
                                    causes of action, liabilities, losses,
                                    deficiencies and damages, as well as costs
                                    and expenses (including reasonable
                                    attorneys' fees and court costs), interest
                                    and penalties related thereto, asserted
                                    against, or incurred by any such indemnified
                                    party by reason of or resulting or arising
                                    from (A) the ownership, leasing, maintenance
                                    and/or operation of the Building during
                                    Building Owner's ownership thereof (other
                                    than expenses to be apportioned pursuant to
                                    Section 5(b) above and payment of Land
                                    Owner's share of Shared Capital Improvements
                                    under SECTION 11 of the Agreement and
                                    Continuing Project Obligations), and (B) the
                                    ownership, leasing, maintenance and/or
                                    operation of other properties and any other
                                    activities, operations, businesses, concerns
                                    or other matters engaged in or performed by
                                    Building Owner or for which Building Owner
                                    is or may be deemed to be liable or
                                    responsible, including without limitation
                                    any pledges, security agreements, mortgages
                                    and other obligations and liabilities
                                    arising therefrom. The foregoing is not
                                    intended to affect the rights of Building
                                    Owner or Land Owner or their respective
                                    Affiliates under the Affiliate Contracts. In
                                    no event shall Building Owner Member be
                                    liable to Land Owner for consequential
                                    damages.

                           (8)      The JVA shall contain provisions whereby the
                                    Joint Venture shall indemnify Building Owner
                                    Member (and its respective officers,
                                    directors, members, shareholders, partners,
                                    trustees, beneficiaries, agents and
                                    employees) from and against any and all
                                    claims, demands, causes of action,
                                    liabilities, losses, deficiencies and
                                    damages, as well as costs and expenses
                                    (including reasonable attorneys' fees and
                                    court costs), interest and penalties related
                                    thereto, asserted against, or incurred by
                                    any such indemnified party by reason of or
                                    resulting or arising from the ownership,
                                    leasing, maintenance and/or operation of the
                                    Building during the Joint Venture's period
                                    of ownership thereof, including for
                                    Continuing Project Obligations. The
                                    foregoing is not intended to affect the
                                    rights of Building Owner or Land Owner or
                                    their respective Affiliates under the

                                      A-8
<Page>

                                    Affiliate Contracts. In no event shall the
                                    Joint Venture be liable to Building Owner
                                    Member for consequential damages.

                  4.       The capital account of each Venturer shall be
                           credited with one-half of the Fair Market Value of
                           the Project as of the Option Effective Date.

                  5.       Each Venturer shall, additionally, contribute fifty
                           (50%) percent of the working capital requirements of
                           the Joint Venture as set forth in the First Budget.

         3.       The initial respective interests of the Venturers in and to
                  all real and personal property, moneys and profits of the
                  Joint Venture, and their respective shares of all losses,
                  expenses, obligations and liabilities of the Joint Venture
                  (the "PERCENTAGE INTERESTS") shall be as follows:

                           Land Owner              50%
                           Building Owner Member   50%

19.      ADDITIONAL CAPITAL CONTRIBUTIONS; ADVANCES TO THE JOINT VENTURE.

         1.       The JVA shall contain provisions for either Venturer to call
                  upon each Venturer to provide funds (the "REQUESTED AMOUNT")
                  within thirty (30) days (unless a shorter time period is
                  reasonably required under the circumstances), if such Venturer
                  reasonably determines that funds are required (i) for the
                  operation of the business of the Joint Venture in accordance
                  with the Budget, (ii) to cure any default under any debt of
                  the Joint Venture or (iii) to pay the costs of improvements in
                  order to comply with any Requirements if the failure to pay
                  the same would have an immediate material adverse affect on
                  the Project. Such advances shall be made as capital
                  contributions to the Joint Venture by both Venturers unless
                  otherwise agreed upon in writing by both Venturers. Each
                  Venturer shall contribute its Percentage Interest of the
                  Requested Amount.

         2.       If a Venturer ( the "WITHHOLDING VENTURER") fails to advance
                  its Percentage Interest of the Requested Amount within the
                  time period provided in SECTION 6(A) above, and such failure
                  continues for five (5) Business Days after a reminder notice
                  is delivered to such Venturer from the other Venturer, the
                  other Venturer (the "NON-WITHHOLDING VENTURER") shall have the
                  right to (i) contribute to the Joint Venture for its own
                  capital account the Percentage Interest of the Requested
                  Amount due from the Withholding Venturer (the "DEFICIENCY"),
                  in which event the respective Percentage Interests shall be
                  recalculated as set forth in SECTION 6(C) below, or (ii) make
                  a loan to the Withholding Venturer (a "DEFICIT LOAN").

         3.       If the Non-Withholding Venturer advances the Deficiency as a
                  capital contribution pursuant to SECTION 6(B)(I) above or
                  converts a Deficit Loan to a

                                      A-9
<Page>

                  capital contribution pursuant to SECTION 6(D) below, then the
                  Percentage Interests of the Venturers shall be recalculated so
                  that (i) the Percentage Interest of the Withholding Venturer
                  shall be reduced by subtracting therefrom the product of (A)
                  the Withholding Venturer's then Percentage Interest in the
                  Joint Venture, multiplied by (B) a fraction, the numerator of
                  which shall be 1.25 times the Deficiency and the denominator
                  of which shall be the sum of all capital contributions
                  theretofore made by such Withholding Venturer plus the
                  Withholding Venturer's Percentage Interest of such Requested
                  Amount, and (ii) the Percentage Interest of the
                  Non-Withholding Venturer shall be increased by the same
                  amount.

         4.       Deficit Loans shall bear interest at the Prime Rate plus four
                  percent (4%) per annum and, at the option of the
                  Non-Withholding Venturer, shall be converted to a capital
                  contribution with the subsequent recalculation of Percentage
                  Interest of the Venturers as provided in SECTION 6(C) above.
                  Any interest due in any fiscal year on any Deficit Loan which
                  is not paid shall be added to the principal amount of said
                  Loan at the end of such fiscal year. All Deficit Loans shall
                  automatically become due and payable upon the transfer by the
                  Withholding Venturer or the Non-Withholding Venturer of its
                  interest in the Joint Venture. All distributions to any
                  Withholding Venturer shall be paid to the Non-Withholding
                  Venturer first towards payment of interest, then principal
                  under any Deficit Loan, until the same is paid in full.

20.      DISTRIBUTIONS; PROFITS AND LOSSES.

         1.       The Joint Venture shall distribute to the Venturers quarterly
                  within thirty (30) days after the close of each fiscal
                  quarter, an amount equal to the Joint Venture's net cash flow
                  (I.E., cash receipts less cash expenses) as of the end of such
                  fiscal quarter, subject to reserves set forth in the Budget.
                  Net cash flow distributions shall be distributed to the
                  Venturers in accordance with their respective Percentage
                  Interests except that (i) to the extent there is a Building
                  Owner Member credit pursuant to SECTION 5(B)(II)(5) above,
                  prior to either Venturer receiving any distributions which it
                  would otherwise be entitled to receive under this SECTION 7,
                  such distributions shall first be paid to Building Owner
                  Member until such time as 100% of such credit has been paid in
                  full to Building Owner Member, (ii) to the extent there is a
                  Joint Venture credit pursuant to SECTION 5(b)(ii)(5) as a
                  result of payments with respect to Continuing Leases made
                  after the Option Effective Date, prior to Building Owner
                  Member receiving any distributions which it would otherwise be
                  entitled to receive under this SECTION 7, such distributions
                  otherwise payable to Building Owner Member hereunder shall
                  first be paid to Land Owner until such time as 50% of such
                  credit has been paid in full to Land Owner and (iii) to the
                  extent Land Owner is entitled to a credit pursuant to Section
                  11(d)(vii)(C) of the Agreement as a result of any Contract
                  Excess with respect to any Incomplete Shared Capital
                  Improvement, prior to Building Owner Member receiving any
                  distributions which it would otherwise be

                                      A-10
<Page>

                  entitled to receive under this SECTION 7, such distributions
                  shall first be paid to Land Owner until such time as such
                  credit has been paid in full. Net proceeds resulting from
                  sales, financings, Joint Venture liquidation and other
                  extraordinary events shall be distributed to the Venturers in
                  accordance with their respective Percentage Interests, except
                  that (i) to the extent there is a Building Owner Member credit
                  pursuant to SECTION 5(B)(II)(5), prior to either Venturer
                  receiving any distributions which it would otherwise be
                  entitled to receive under this SECTION 7, such distributions
                  shall first be paid to Building Owner Member until such time
                  as 100% of such credit has been paid in full to Building Owner
                  Member, (ii) to the extent there is a Joint Venture credit
                  pursuant to SECTION 5(B)(II)(5) hereof as a result of payments
                  with respect to Continuing Leases made after the Option
                  Effective Date, prior to Building Owner Member receiving any
                  distributions which it would otherwise be entitled to receive
                  under this SECTION 7, such distributions otherwise payable to
                  Building Owner Member hereunder shall first be paid to Land
                  Owner until such time as such 50% of such credit has been paid
                  in full to Land Owner and (iii) to the extent Land Owner is
                  entitled to a credit pursuant to SECTION 11(D)(VII)(C) of the
                  Agreement as a result of any Contract Excess with respect to
                  any Incomplete Shared Capital Improvement, prior to Building
                  Owner Member receiving any distributions which it would
                  otherwise be entitled to receive under this SECTION 7, such
                  distributions shall first be paid to Land Owner until such
                  time as such credit has been paid in full.

         2.       Profits and losses shall be allocated to the Venturers in
                  accordance with their respective Percentage Interests.

21.      CONTROL AND MANAGEMENT.

         1.       The Joint Venture shall be operated and governed collectively
                  by the Venturers, as set forth in this SECTION 8. Actions by
                  the Joint Venture which constitute Major Decisions shall
                  require the affirmative votes of the Venturer or Venturers
                  holding at least fifty-five (55%) percent of the Percentage
                  Interests in the Joint Venture (the "CONTROLLING BLOCK").

         2.       Land Owner shall be responsible for the day to day operation
                  and ordinary and usual business and affairs of the Joint
                  Venture which do not constitute Major Decisions; provided
                  however, if either (x) Land Owner shall become a Defaulting
                  Venturer pursuant to SECTION 20(B) below and Building Owner
                  Member is not then also a Defaulting Venturer or (y) the RCMC
                  Management Agreement shall have been terminated by reason of
                  the manager's default thereunder, then in either of those
                  cases, Building Owner Member shall have the right to elect to
                  have such responsibility (the actual Venturer having such day
                  to day responsibilities being referred to as the "OPERATING
                  VENTURER"). Subject to the approval by the Controlling Block
                  and subject to the following sentence, the Operating Venturer

                                      A-11
<Page>

                  shall have the right to hire a manager to perform property
                  management services with respect to the Project. Provided the
                  conditions set forth below have been satisfied, RCMC or its
                  Affiliate shall be the managing agent for the Joint Venture
                  pursuant to a management agreement on fair market financial
                  terms and substantially incorporating the non-monetary terms
                  set forth in the Management Agreement dated as of the date of
                  this Agreement between Building Owner and RCMC (the "RCMC
                  MANAGEMENT AGREEMENT") and otherwise reasonably acceptable to
                  Building Owner Member (and such Management Agreement may be
                  terminated if, at any time, such conditions do not continue to
                  be satisfied):

                  1.       Rock-Forty-Ninth LLC or its Wholly-Owned Affiliate
                           maintains at least a twenty-five percent (25%)
                           interest in the Joint Venture;

                  2.       RCMC (or such managing Affiliate) is a Wholly-Owned
                           Affiliate of RGI and (A) 25% or more of the
                           beneficial ownership in RGI is not directly or
                           indirectly owned by a single Competitor of Building
                           Owner Member and (B) 37.5% or more of the beneficial
                           ownership in RGI is not directly or indirectly owned
                           by one or more Competitors of Building Owner Member
                           who, directly or through their Affiliates, are in the
                           same primary line of business (and that line of
                           business is in competition with a primary line of
                           business of Building Owner Member or an Affiliate of
                           Building Owner Member), whether or not such
                           Competitors are Affiliated with each other and (C)
                           RGI is not directly or indirectly controlled by any
                           single Competitor of Building Owner Member or two or
                           more Competitors of the Building Owner Member acting
                           in concert with each other. In the event the
                           conditions set forth in this clause (ii) are
                           satisfied, but a Competitor of Building Owner Member
                           owns a direct or indirect interest in RGI (which does
                           not rise to the levels specified in CLAUSES (A)
                           through (C), above), RGI and RCMC (or such managing
                           Affiliate) shall provide an agreement reasonably
                           satisfactory to Building Owner Member in which RGI
                           and RCMC (or such managing Affiliate) agree in
                           writing not to disclose any information regarding the
                           business of the Building Owner Member or any of its
                           Affiliates (as opposed to the financial or physical
                           operation of the Project) to such Competitor or
                           Affiliates of such Competitor; and

                  3.       the RCMC Management Agreement has not been previously
                           terminated by reason of RCMC's default thereunder.

                           The direct or indirect beneficial ownership interests
                           in RGI owned or controlled by any Competitor of
                           Building Owner Member shall be aggregated for all
                           purposes of clause (ii) above (including any
                           "control" test).

         3.       The following Joint Venture Decisions ("MAJOR DECISIONS")
                  shall be made only upon the approval by the Controlling Block:

                                      A-12
<Page>

         1.       The sale or lease of all or substantially all of the Project.

         2.       The financing or refinancing of the Project, or any portion
                  thereof, provided that Morgan Stanley Dean Witter ("MSDW") and
                  its Affiliates shall have a right of first offer with respect
                  to the same and, in such event, so long as MSDW and any
                  Affiliate of MSDW who is generally in the financing business
                  have at least a 25% interest in the Joint Venture and the
                  Joint Venture elects to retain an agent to obtain such
                  financing, MSDW or its Affiliate will be retained by the Joint
                  Venture at market rates as the exclusive agent to obtain any
                  such financing.

         3.       The acquisition of real property or development rights.

         4.       Office leases of at least one (1) full floor of rentable
                  square feet in the Project and any modification or termination
                  thereof.

         5.       All other leases, licenses and other use and occupancy
                  agreements for a term, including extensions, exceeding five
                  (5) years.

         6.       All retail and signage leases.

         7.       Annual leasing guidelines.

         8.       Any lease, license or other use and occupancy agreement which
                  is inconsistent with leasing guidelines approved by all
                  Venturers on an annual basis or other than substantially in
                  the form of the approved lease form.

         9.       The Budget.

         10.      Changes in tax treatment of the Joint Venture.

         11.      The entering into of any agreement between the Joint Venture
                  and a Venturer or an Affiliate of a Venturer, other than the
                  agreements entered into pursuant to SECTION 8(B), SECTION
                  8(C)(II), and SECTION 18 hereof.

         12.      The entering into any agreement by the Joint Venture which has
                  a term exceeding one year (other than leases which do not
                  require the approval of the Controlling Block as set forth
                  herein) unless such agreement is terminable without penalty
                  upon not more than thirty (30) days' notice.

         13.      Expenditure of any amounts exceeding (a) 3% for any line items
                  in the Budget or (b) 1% of the total Budget in the aggregate
                  with respect to expenditures for any line items in the Budget
                  and any expenditures for any items not included in the Budget.

                                      A-13
<Page>

         14.      The dissolution or voluntary bankruptcy of the Joint Venture.

         15.      The initiation or settlement of litigation (other than actions
                  relating to leases for which approval of the Controlling Block
                  is not required) which involve individual claims exceeding
                  $100,000 (or such higher minimum amount which is then
                  customary).

         16.      Redesign, alteration, improvement or reconstruction of the
                  Building to the extent not approved in the Budget or permitted
                  under clause (xiii) above.

         17.      The demolition or abandonment of any portion of the Project
                  (unless set forth in the Budget or in connection with approved
                  tenant improvements under leases permitted hereunder).

         18.      Except as provided in SECTION 10 below, the admission of new
                  Venturers.

         19.      The appointment of a manager, the services to be performed by
                  such manager and the terms of the management agreement other
                  than pursuant to the RCMC Management Agreement pursuant to
                  SECTION 8(B) above and other than the replacement of RCMC by
                  reason of default by RCMC and resulting termination of the
                  RCMC Management Agreement.

         20.      Granting of any easement or encumbrance affecting the Project.

         21.      Casualty settlements in excess of $100,000.

         22.      Condemnation settlements.

         23.      Determination of reserves during the term of the Joint Venture
                  or upon dissolution.

         24.      All, except de minimis, environmental matters.

         25.      Form of lease.

         26.      The appointment of a leasing agent, the services to be
                  performed by such leasing agent and the terms of the leasing
                  agency agreement, other than pursuant to the RCMC Leasing
                  Agreement and other than by reason of the default and
                  resulting termination of the RCMC Leasing Agreement.

         27.      The amounts and types of insurance.

         Any Venturer (the "PROPOSING VENTURER") shall have the right to propose
         that action be taken regarding a Major Decision. The other Venturer
         (the

                                      A-14
<Page>

         "RESPONDING VENTURER") shall approve or deny any Major Decision within
         thirty (30) days after request in writing for approval from the
         Proposing Venturer. If approval is not granted by the Responding
         Venturer within such thirty (30) day period, the Responding Venturer
         shall be deemed to have denied its approval of such Major Decision. If
         the Venturers do not jointly approve any Major Decision, then neither
         the Joint Venture nor any Venturer individually shall have the right to
         take any action with respect to such Major Decision and, provided that
         the Proposing Venturer first delivers to the Responding Venturer a
         Deemed Approval Notice and the Responding Venturer fails to deliver a
         notice to the Proposing Venturer that it consents to the action
         proposed by the Proposing Venturer set forth in the Proposing
         Venturer's initial notice within five (5) Business Days following the
         delivery of the foregoing Deemed Approval Notice, each Venturer shall
         have the right to exercise the buy-sell option described below. In the
         event either Venturer so elects, the buy-sell mechanism shall be the
         sole remedy of such Venturer with respect to such Major Decision.
         Notwithstanding anything to the contrary contained herein, if the
         Responding Venturer exercises its buy-sell option as provided below,
         the Proposing Venturer shall be entitled to withdraw its proposal
         regarding the Major Decision that gave rise to the Responding
         Venturer's right to exercise the buy-sell option by giving written
         notice to the Responding Venturer of such withdrawal within five (5)
         Business Days after the Proposing Venturer's receipt of the Buy-Sell
         Offering Notice (as hereinafter defined), time of the essence. If the
         Proposing Venturer exercises its buy-sell option as provided below, the
         Responding Venturer shall be entitled to thereafter approve the Major
         Decision that gave rise to the Proposing Venturer's right to exercise
         the buy-sell option by giving written notice to the Proposing Venturer
         of such approval within five (5) Business Days after the Responding
         Venturer's receipt of the Buy-Sell Offering Notice, time of the
         essence. If the Proposing Venturer withdraws its proposal or the
         Responding Venturer approves the Major Decision, each in the manner
         provided above, the Responding Venturer's or the Proposing Venturer's,
         as the case may be, exercise of the buy-sell option relating thereto
         shall be void and of no force and effect, and the Venturers shall be
         restored to their respective positions prior to the making of the
         proposal by the Proposing Venturer with respect to the Major Decision.
         Notwithstanding anything contained to the contrary above, if a single
         Venturer constitutes the Controlling Block such Controlling Block
         Venturer shall have the sole right to make all Major Decisions and no
         other Venturer shall have the right to be a Proposing Venturer.

4.       The Joint Venture shall insure the Project through a reputable insurer
         or insurers licensed to do business in the State of New York and having
         a credit rating of not less than A-/X (or the then equivalent by Best's
         or its successor).

5.       Each Venturer shall have the right to reject the other Venturer's
         customarily retained outside accountants or attorneys as serving as the
         accountants or attorneys for the Joint Venture.

                                      A-15
<Page>

6.       So long as an Affiliate of MSDW is a Venturer having at least a 50%
         Percentage Interest in the Joint Venture and is not a Defaulting
         Venturer, Building Owner Member (or such Affiliate) shall have the
         right to designate a bank or banks which shall maintain the Joint
         Venture accounts, provided in any event said bank or banks shall (i)
         not be an Affiliate of Building Owner Member (or such Affiliate), (ii)
         be based in New York City and (iii) have reasonably appropriate
         capital.

7.       The management agreement shall contain provisions whereby RCMC (or any
         other property manager for the Joint Venture) shall, at least three (3)
         months prior to each calendar year (including the calendar year in
         which the Option Effective Date occurs), establish operating and
         capital budgets for the Project for the Joint Venture's approval. Each
         of the budgets approved by the Joint Venture in accordance with the
         terms hereof shall be referred to as a "BUDGET." The first such budgets
         for the calendar year 2032 shall be referred to as the "FIRST BUDGET".
         The following provisions shall apply to the Budgets:

         1.       If the First Budget is not timely established, until such time
                  as the First Budget is established, the Project shall be
                  operated in accordance with a budget consisting of (i) all
                  amounts for non-discretionary items such as real estate taxes,
                  Building employees and any indebtedness of the Joint Venture
                  and (ii) 102% of all other amounts included in Building
                  Owner's budget for the prior year, except that there shall be
                  no capital items other than continuing capital projects
                  approved or deemed approved by both Venturers, any capital
                  projects constituting Continuing Project Obligations and any
                  Incomplete Shared Capital Improvements.

         2.       If any year's Budget (subsequent to the First Budget) is not
                  timely established, until such time as the new Budget is
                  established, the Project shall be operated in accordance with
                  a budget consisting of (i) all amounts for non-discretionary
                  items and (ii) 102% of all other amounts included in the prior
                  year's Budget, except that there shall be no capital items
                  other than continuing capital projects approved in a prior
                  Budget.

         3.       Each operating budget shall include a detailed breakdown of
                  all operating costs and each capital budget shall include a
                  detailed breakdown of capital improvements, required reserves,
                  projected requirements for additional capital contributions
                  and tenant improvements.

         4.       Each Venturer shall approve or disapprove a proposed budget
                  within thirty (30) days after submission of the same to such
                  Venturer by the managing agent. If any Venturer shall not
                  respond within such thirty (30) day period, its approval shall
                  be deemed denied.

                                      A-16
<Page>

         5.       The Operating Venturer shall use reasonable efforts to cause
                  the Project to be operated in accordance with the Budget. The
                  Operating Venturer shall receive no compensation for the
                  performance of its duties under the JVA.

         8.       All Venturers shall receive copies of all notices, reports and
                  other items delivered under any management and leasing
                  agreements, as well as copies of all tax returns.

22.      DURATION.The Joint Venture shall continue until the earliest to occur
         of (i) December 31, 2100, (ii) the agreement of the Venturers to
         terminate, or (iii) the date when termination is otherwise provided by
         law or by the JVA.

23.      TRANSFER OF INTERESTS.

         1.       Except as set forth in this SECTION 10, no Venturer (nor any
                  direct or indirect parent of any Venturer) shall Transfer any
                  interest in the Joint Venture, directly or indirectly,
                  voluntarily or involuntarily without the consent of the other
                  Venturer which may be withheld in each Venturer's respective
                  absolute discretion.

         2.       No Venturer shall have the right to Transfer less than all of
                  its direct interest in the Joint Venture, nor shall any of its
                  Single-Asset Holding Companies (as hereinafter defined) have
                  the right to transfer less than all of its indirect interest
                  in the Joint Venture (a "Prohibited Transfer"). If either
                  Venturer wishes to Transfer all of its direct interest in the
                  Joint Venture or in any of its Single Asset Holding Companies
                  other than in connection with a Permitted Transfer (a "Direct
                  Transfer"), the following right of first offer provisions
                  shall apply:

                  1.       The offering Venturer (the "OFFEROR") shall give
                           notice (a "SALE NOTICE") to the other Venturer (the
                           "OFFEREE") of its desire so to do, which Sale Notice
                           shall state the price, measured in dollars and
                           payable solely in cash, for which it intends to sell
                           its direct interest in the Joint Venture (the "OFFER
                           PRICE"). The Offer Price shall not include the
                           amounts required to be paid pursuant to SECTION
                           10(B)(II)(2) below. The Offeree shall, within thirty
                           (30) days after receipt of such Sale Notice, notify
                           the Offeror by written notice (the "PURCHASE NOTICE")
                           whether or not the Offeree will purchase the interest
                           at the Offer Price, payable in cash, on a closing
                           date not less than sixty (60) days after the date of
                           the Purchase Notice. If the Offeree does not respond
                           within said thirty (30) day period, time being of the
                           essence with respect thereto, the Offeree shall be
                           deemed to have declined to purchase the interest.

                  2.       If the Offeree elects to purchase the interest, the
                           notices given by the Offeror and the Offeree pursuant
                           to paragraph (i) above shall constitute a binding
                           agreement of purchase and sale between the Offeror
                           and the Offeree. Concurrently with the delivery of
                           the Purchase Notice, the

                                      A-17
<Page>

                           Offeree shall deposit into an escrow account with the
                           Offeror's attorney, a sum equal to ten percent (10%)
                           of the Offer Price (the "DEPOSIT") as security for
                           the purchase, which deposit shall be paid to the
                           Offeror at the closing of such purchase as part of
                           the purchase price. Any interest on the Deposit shall
                           be credited to the Offeree unless the Offeree
                           defaults, in which event the interest shall go to the
                           Offeror. Whichever entity receives the interest shall
                           pay all income taxes thereon. On a date and at a
                           place in New York, New York specified by the Offeror,
                           within the time parameters specified above:

                           (1)      the Offeror shall deliver to the Offeree a
                                    duly executed and acknowledged instrument of
                                    assignment conveying the interest of Offeror
                                    to the Offeree or its designee, free and
                                    clear of all liens and encumbrances, which
                                    instrument shall contain surviving
                                    representations concerning the absence of
                                    such liens and encumbrances and that the
                                    Offeror has not taken any action on behalf
                                    of the Joint Venture in violation of the JVA
                                    and shall contain a provision indemnifying
                                    and holding the Offeree harmless from any
                                    loss, cost or expense (including reasonable
                                    attorneys' fees) it may incur by reason of
                                    any breach of any such representations.
                                    Notwithstanding anything to the contrary
                                    contained in SECTION 17 hereof, Offeree
                                    shall have the right to look to Offeror and
                                    the direct and indirect owners of Offeror
                                    for any breach of such representations, but
                                    only to the extent of the proceeds of such
                                    sale;

                           (2)      the Offeror shall pay all transfer, stamp,
                                    gains or similar taxes due in connection
                                    with the conveyance of its interest;

                           (3)      the Offeree shall pay the Offer Price (less
                                    the Deposit and as adjusted by the credits
                                    and apportionments herein set forth) in
                                    cash;

                           (4)      net cash flow to the date of closing shall
                                    be distributed in accordance with the
                                    provisions of the JVA, the benefit of which
                                    provisions shall survive any closing
                                    pursuant hereto for purposes of making or
                                    correcting any customary closing
                                    adjustments; and

                           (5)      the Venturers shall execute all amendments
                                    to fictitious name or similar certificates
                                    necessary to reflect the withdrawal of the
                                    Offeror from the Joint Venture, the
                                    admission of any new Venturer to the Joint
                                    Venture and, if applicable, the termination
                                    of the Joint Venture.

                                      A-18
<Page>

                  3.       If the Offeree fails to close the purchase and sale
                           contemplated hereby by reason of its default after a
                           binding agreement of purchase and sale has been
                           formed under paragraph (i) above, then the Offeror
                           may (A) retain the Deposit and all interest accrued
                           thereon as liquidated damages and/or (B) exercise the
                           buy-sell option pursuant to SECTION 11 below.
                           Notwithstanding the remedies afforded the Offeror in
                           the immediately preceding clauses (A) and (B) above,
                           if the Offeree fails to close the purchase and sale
                           by reason of its default after a binding agreement of
                           purchase and sale has been formed under paragraph (i)
                           above, Offeror shall have the right to effect a
                           Transfer to any Qualified Third Party (including a
                           Competitor of the Offeree) within the twenty-four
                           (24) month period following the date of Offeree's
                           default without complying with, or being bound by any
                           of the terms, conditions or restrictions of this
                           SECTION 10.

                  4.       If the Offeror fails to close the purchase and sale
                           contemplated hereby by reason of its default after a
                           binding agreement of purchase and sale has been
                           formed under paragraph (i) above, then the Offeree
                           (A) shall be entitled to a return of the Deposit,
                           together with all interest accrued thereon and (B)
                           may (I) seek specific performance or otherwise pursue
                           its remedies at law or in equity with respect to the
                           binding agreement of purchase and sale formed
                           pursuant to such paragraph (i) and/or (II) exercise
                           the buy-sell option pursuant to SECTION 11 below.

                  5.       In the event that the Offeree does not timely deliver
                           a Purchase Notice, then, subject to the terms of
                           SECTION 10(C) below, the Offeror may effect the
                           proposed transfer to a "Qualified Third Party" within
                           twelve (12) months after the expiration of the thirty
                           (30) day period following the delivery of the Sale
                           Notice, for consideration in cash or cash equivalent
                           and on other economic terms having a present cash
                           value of not less than ninety-five (95%) of the Offer
                           Price.

                  6.       A "QUALIFIED THIRD PARTY" shall mean a Person not an
                           Affiliate of either Venturer which is a reputable
                           person of good character and business dealings.
                           Within thirty (30) days after any Venturer notifies
                           the other Venturer of the name and other reasonable
                           information concerning the nature of the business and
                           ownership of any proposed transferee (or, if such
                           other Venturer reasonably requests additional
                           information regarding such proposed transferee within
                           such thirty (30) day period, thirty (30) days after
                           such additional information is delivered to such
                           other Venturer), such other Venturer shall confirm
                           whether or not such proposed transferee constitutes a
                           Qualified Third Party. If such other Venturer fails
                           to respond within such thirty (30) day period, such
                           proposed transferee shall be deemed to constitute a
                           Qualified Third Party. Any dispute regarding any
                           Qualified Third Party will be subject to arbitration
                           and, if

                                      A-19
<Page>

                           any party elects at any time after a proposed
                           Qualified Third Party has been identified, the
                           arbitration procedure set forth in SECTION 13.18 of
                           the Ground Lease will be put in place to resolve any
                           such dispute.

                  7.       If a Qualified Third Party transfer pursuant to this
                           SECTION 10(B) is not consummated within such twelve
                           (12) month period or if the Offeror desires to effect
                           such a transfer for consideration in cash or cash
                           equivalent and on other economic terms having a
                           present cash value of less than ninety-five (95%) of
                           the Offer Price, the Offeror must once again comply
                           with these right of first offer provisions.

         3.       Notwithstanding anything contained herein to the contrary, if
                  Offeree has waived or deemed to have waived its rights to
                  purchase Offeror's interest in the Joint Venture in accordance
                  with the terms of SECTION 10(B) set forth above, Offeror shall
                  still have no right to effect a Direct Transfer to a
                  Competitor of Offeree unless and until it has complied with
                  the provisions set forth below:

                  1.       Offeror shall provide written notice to Offeree that
                           it is in serious good faith negotiations to effect
                           the Transfer of its direct interest in the Joint
                           Venture to a Competitor of Offeree, and such written
                           notice (the "COMPETITOR SALE NOTICE") shall include a
                           certification by Offeror as to (a) the name of the
                           proposed transferee and (b) the basic terms of the
                           transaction, and that such basic terms are
                           substantially agreed upon in principle by Offeror and
                           such Competitor. All information contained in the
                           Competitor Sale Notice, to the extent such
                           information is not generally available in the
                           marketplace, shall be kept in strict confidence by
                           Offeree.

                  2.       Offeree shall have ten (10) Business Days after its
                           receipt of the Competitor Sale Notice to elect by
                           notice to Offeror (the "COMPETITOR SALE RESPONSE")
                           whether or not it elects to purchase Offeror's
                           interest upon the terms set forth in the Competitor
                           Sale Notice. Concurrently with the delivery of a
                           Competitor Sale Response in which Offeree elects to
                           purchase Offeror's interest upon the terms set forth
                           in the Competitor Sale Notice, Offeree shall deposit
                           into an escrow account with the Offeror's attorney, a
                           sum equal to ten percent (10%) of the purchase price
                           set forth in the Competitor Sale Notice as security
                           for the purchase, which deposit shall be paid to the
                           Offeror at the closing of such purchase as part of
                           the purchase price. Any interest on the deposit shall
                           be credited to the Offeree unless the Offeree
                           defaults, in which event interest shall go to the
                           Offeror. Whichever entity receives the interest shall
                           pay all income taxes thereon. If Offeree does not
                           deliver the Competitor Sale Response within such ten
                           (10) Business Day period electing to so purchase
                           Offeror's interest and upon the expiration of such
                           ten (10) Business Day period, Offeror delivers a
                           Deemed Approval Notice to Offeree and Offeree fails
                           to deliver such Competitor Sale Response within three
                           (3) Business Days after receipt of

                                      A-20
<Page>

                           such Deemed Approval Notice, Offeree shall be deemed
                           to have waived its rights hereunder with respect to a
                           sale of the Offeror's interest on the terms and to
                           the Competitor set forth in the Competitor Sale
                           Notice, and Offeror may consummate a sale to the
                           third party Competitor of Offeree set forth in the
                           Competitor Sale Notice in accordance with SECTION
                           10(B)(V) within twelve (12) months of the giving of
                           the Competitor Sale Notice (but in any event the
                           ultimate cash or cash equivalent consideration shall
                           be not less than ninety-five (95%) of that stated in
                           the Competitor Sale Notice ).

                  3.       If Offeree affirmatively elects to purchase Offeror's
                           interest in the Competitor Sale Response, the
                           Competitor Sale Notice and the Competitor Sale
                           Response shall, taken together, constitute a binding
                           agreement for the purchase and sale of Offeror's
                           interest, and the terms of SECTION 10(B)(II), (III)
                           AND (IV) shall apply, except that for purposes of
                           this SECTION 10(C), (1) the term Competitor Sale
                           Notice shall be substituted for the term Sale Notice;
                           (2) the term Competitor Sale Response shall be
                           substituted for the term Purchase Notice and (3) the
                           Offer Price shall be deemed to be the price which the
                           Competitor offered to pay for Offeror's interest in
                           the Joint Venture as set forth in the Competitor Sale
                           Notice.

         4.       Each Venturer and its Affiliates shall have the right to
                  effect any Transfer which does not constitute (x) a Prohibited
                  Transfer or (y) a Restricted Transfer (as defined below) the
                  following Transfers without the consent of the other Venturer,
                  including the following Transfers: (a) a Transfer to a
                  Wholly-Owned Affiliate of either Venturer; (b) a Transfer of
                  any shares or interests in any person (other than in such
                  Venturer or in any person whose assets consist entirely or
                  almost entirely of a direct or indirect ownership interest in
                  such Venturer (a "SINGLE ASSET HOLDING COMPANY")) owning a
                  direct or indirect interest in the Joint Venture; (c) a
                  Transfer by reason of an initial public offering of a person
                  (but not such Venturer or any of its Single Asset Holding
                  Companies) owning a direct or indirect interest in the Joint
                  Venture; (d) a Transfer effected by the merger, reorganization
                  or recapitalization of or with MSDW or an Affiliate of MSDW or
                  RGI or an Affiliate of RGI (but not in any Venturer or any of
                  its Single Asset Holding Companies) or by the purchase of all
                  or substantially all of the assets or ownership interests of
                  RGI or an Affiliate of RGI or MSDW or an Affiliate of MSDW
                  (but not of any Venturer or any of its Single Asset Holding
                  Companies) or otherwise in connection with another corporate
                  transaction involving RGI or an Affiliate of RGI or MSDW or an
                  Affiliate of MSDW (but not of any Venturer or any of its
                  Single Asset Holding Companies) or (e) an Upstream Competitor
                  Transfer (defined below) which does not constitute a
                  Prohibited Transfer or a Restricted Transfer, provided that
                  any such Transfer (including the cases (a) through (e) above)
                  is for a legitimate business purpose and is not solely
                  intended to Transfer such Venturer's interest in the Joint
                  Venture, and provided further that any Transfer referred to
                  above does not constitute a Prohibited

                                      A-21
<Page>

                  Transfer or a Restricted Transfer. The Transfers identified in
                  the foregoing clauses (a) through (d) above are hereinafter
                  referred to individually as a "PERMITTED TRANSFER", and
                  collectively as "PERMITTED TRANSFERS". The following
                  additional provisions shall apply to Upstream Competitor
                  Transfers:

                  1.       An "UPSTREAM COMPETITOR TRANSFER" shall mean a
                           Transfer with respect to a transferring Venturer
                           (excluding Transfers of shares or interests in Public
                           Companies) which results in any direct or indirect
                           beneficial ownership in such transferring Venturer
                           being owned or controlled by any Competitor of the
                           non-transferring Venturer.

                  2.       In the case of any Upstream Competitor Transfer which
                           does not constitute a Restricted Upstream Competitor
                           Transfer, prior to or contemporaneously with such
                           Transfer (but in no event later than five (5)
                           Business Days after the earlier of the occurrence of
                           such Transfer or the issuance of any press release or
                           other public statement made by the Venturer seeking
                           to effect such Transfer or the Competitor in question
                           or their respective Affiliates concerning the
                           Upstream Competitor Transfer and the parties
                           involved), such Venturer shall provide written notice
                           thereof to the non-transferring Venturer, which
                           written notice shall include (a) a certification by
                           the transferring Venturer (i) of the name of the
                           Competitor in question and (ii) that the Transfer
                           does not constitute a Restricted Upstream Competitor
                           Transfer and (b) a confidentiality agreement in
                           customary form whereby the transferring Venturer and
                           such Competitor agree that any information regarding
                           the business of the non-transferring Venturer or any
                           of its Affiliates (as opposed to the financial or
                           physical operation of the Premises and the Joint
                           Venture) shall be kept in strict confidence by the
                           transferring Venturer and shall not be disclosed in
                           any manner to such Competitor or its Affiliates.

                  3.       "RESTRICTED TRANSFER" shall mean any Direct Transfer
                           or Restricted Upstream Competitor Transfer.

         5.       Notwithstanding the foregoing, the following provisions shall
                  apply to Upstream Competitor Transfers and Restricted Upstream
                  Competitor Transfers, as defined below:

                  1.       "RESTRICTED UPSTREAM COMPETITOR TRANSFER" shall mean
                           a Transfer with respect to a Venturer, excluding
                           Transfers of shares or interests in Public Companies,
                           which, together with and aggregating the effect of
                           any prior Transfers (A) would result in 25% or more
                           of the beneficial ownership in the direct or indirect
                           parent of such Venturer being directly or indirectly
                           owned by a single Competitor of the other Venturer or
                           (B) would result in 37.5% or more of the beneficial
                           ownership in the direct or indirect parent of such
                           transferring Venturer being directly or indirectly
                           owned by one or

                                      A-22
<Page>

                           more Competitors of the non-transferring Venturer
                           who, directly or through their Affiliates, are in the
                           same primary line of business (and that line of
                           business is in competition with a primary line of
                           business of the non-transferring Venturer or an
                           Affiliate of the non-transferring Venturer), whether
                           or not such Competitors are Affiliated or (C)
                           actually results in either Venturer being directly or
                           indirectly controlled by any single Competitor of the
                           non-transferring Venturer or two or more Competitors
                           of the non-transferring Venturer acting in concert
                           with each other. The direct or indirect beneficial
                           ownership interest in any Venturer owned or
                           controlled by a Competitor of the other Venturer and
                           Affiliates of such Competitor shall be aggregated for
                           all purposes of this Section (including any "control"
                           test).

                  2.       A Venturer seeking to effect a Restricted Upstream
                           Competitor Transfer (an "UPSTREAM OFFEROR") shall
                           provide written notice (the "UPSTREAM NOTICE") to the
                           other Venturer (an "UPSTREAM OFFEREE") prior to or
                           contemporaneously with the effectiveness of a
                           Upstream Competitor Transfer (but in no event later
                           than five (5) Business Days after the earlier of the
                           occurrence of such Restricted Upstream Competitor
                           Transfer and the issuance of any press release or
                           other public statement made by the transferring
                           Venturer or the Competitor in question or their
                           respective Affiliates concerning the Restricted
                           Upstream Competitor Transfer and the parties
                           involved), and such written notice shall include a
                           certification by Upstream Offeror of (a) the name of
                           the proposed transferee, (b) the aggregate percentage
                           direct or indirect beneficial ownership in the
                           transferring Venturer owned or controlled by such
                           Competitor (and such Competitor's Affiliates) and (c)
                           the existence or non-existence of any agreement by
                           such Competitor (or any of its Affiliates) to act in
                           concert with any other Competitor of the
                           non-transferring Venturer (or such Competitor's
                           Affiliates). All information contained in the
                           Upstream Notice, to the extent such information is
                           not generally available in the marketplace, shall be
                           kept in strict confidence by the Upstream Offeree.
                           Prior to or contemporaneously with the effective date
                           of any Restricted Upstream Competitor Transfer
                           (provided the Upstream Offeree has not theretofore
                           acquired the Upstream Offeror's interest in the Joint
                           Venture in accordance with the provisions set forth
                           below), the Upstream Offeror shall deliver to the
                           Upstream Offeree a customary confidentiality
                           agreement whereby the Upstream Offeror and the
                           Competitor referred to in the Upstream Notice agree
                           that any information regarding the business of the
                           Upstream Offeree or any of its Affiliates (as opposed
                           to the financial or physical operation of the Joint
                           Venture or the Project) shall be kept in strict
                           confidence by the Upstream Offeror and shall not be
                           disclosed in any manner to the Competitor or its
                           Affiliates.

                                      A-23
<Page>

                  3.       The Upstream Offeree shall have thirty (30) days
                           after its receipt of the Upstream Notice to elect by
                           notice to the Upstream Offeror (the "UPSTREAM
                           RESPONSE") whether or not it elects to purchase
                           Upstream Offeror's entire interest in the Joint
                           Venturer (such interest being the "UPSTREAM OFFEROR'S
                           INTEREST"), upon the terms set forth below. If the
                           Upstream Offeree does not timely so affirmatively
                           elect in the Upstream Response or, upon the
                           expiration of such thirty (30) day period, does not
                           timely deliver an Upstream Sale Response within three
                           (3) Business Days after Upstream Offeror delivers an
                           additional Deemed Approval Notice to Upstream Offeree
                           , it shall be deemed to have waived its rights
                           hereunder to purchase the Upstream Offeror's interest
                           in the Joint Venture with respect to that Upstream
                           Notice and the Competitor referred to therein. The
                           Upstream Offeree shall, within ten (10) days after
                           request by the Upstream Offeror, deliver a
                           certification to the Upstream Offeror confirming that
                           the Upstream Offeree has no further right to purchase
                           the Upstream Offeror's interest in the Joint Venture
                           and the Restricted Upstream Competitor Transfer
                           referred to in the Upstream Notice shall be free of
                           all rights of the Upstream Offeree under this SECTION
                           10, but no such certification shall be necessary to
                           make the terms hereof effective.

                  4.       If the Upstream Offeree shall have timely and
                           affirmatively elected, in the Upstream Response, to
                           purchase the Upstream Offeror's Interest, the
                           Upstream Offeror shall then have ten (10) Business
                           Days from the delivery of the Upstream Response by
                           notice to the Upstream Offeree (the "UPSTREAM
                           RESCISSION NOTICE") to rescind the Upstream Offer, in
                           which event, the Upstream Offeror shall have no right
                           to effect the Restricted Upstream Competitor Transfer
                           and the Upstream Offeree shall have not right to
                           acquire the Upstream Offeror's Interest in accordance
                           with this SECTION 10(D).

                  5.       If the Upstream Offeree affirmatively elects in the
                           Upstream Response to purchase the Upstream Offeror's
                           Interest, in the Upstream Response, and the Upstream
                           Offeror has not timely delivered the Upstream
                           Rescission Notice then the Upstream Notice and the
                           Upstream Response shall, taken together, constitute a
                           binding agreement for the purchase and sale of the
                           Upstream Offeror's interest. In that event, the terms
                           of this SECTION 10(B)(II), (III) AND (IV) shall
                           apply, except that for purposes of this SECTION
                           10(E)(V), (1) the term Upstream Notice shall be
                           substituted for the term Sale Notice; (2) the term
                           Upstream Response shall be substituted for the term
                           Purchase Notice, (3) the Offer Price shall be the
                           Fair Market Value of the Upstream Offeror's interest
                           in the Joint Venture, as determined pursuant to
                           SECTION 16 hereof and (4) the Deposit shall be
                           $10,000,000.

                                      A-24
<Page>

         6.       Except as set forth in this SECTION 10, no party shall be
                  admitted as an additional Venturer to the Joint Venture
                  without the consent of both Venturers.

         7.       No Venturer shall have the right to pledge, encumber or grant
                  any security interest in its interest in the Joint Venture,
                  except for the security interest granted to the other Venturer
                  in accordance with SECTION 20(C) below.

24.      DISPUTES; BUY-SELL.

         1.       If (I) any Venturer denies consent (or is deemed to have
                  denied its consent) to any Major Decision and the Venturers do
                  not resolve the dispute within thirty (30) days after such
                  denial or deemed denial, or (II) any Venturer becomes a
                  Defaulting Venturer, or (III) at any time on or prior to the
                  Option Effective Date, Land Owner's interest in the Land or
                  the Ground Lease, or Building Owner's interest in the Building
                  or the Ground Lease, is transferred by operation of law or
                  otherwise, other than in accordance with ARTICLES 22, 38 AND
                  46 of the Ground Lease, then in the case of clause (I) above,
                  each Venturer, subject to the last paragraph of SECTION 8(C)
                  above, shall have the right, to be exercised within sixty (60)
                  days after the expiration of the foregoing thirty (30) day
                  period, or, in the case of clause (II) above, the Venturer
                  that is not the Defaulting Venturer shall have the right at
                  any time, or, in the case of clause (III) above, the other
                  party shall have the right, to be exercised within sixty (60)
                  days after the Option Effective Date, to purchase from or sell
                  to the other Venturer its interest in the Joint Venture in the
                  manner set forth below. It is expressly understood that in no
                  event shall a Defaulting Venturer be entitled to initiate its
                  buy-sell right under this SECTION 11:

                  1.       The Venturer (the "BUY-SELL OFFEROR") may serve upon
                           the other Venturer (the "BUY-SELL OFFEREE") a notice
                           (the "BUY-SELL OFFERING NOTICE") stating its intent
                           to exercise the buy-sell and the dollar amount (the
                           "VALUATION") which the Buy-Sell Offeror as a third
                           party would be willing to pay for the Project as of
                           the date of the Buy-Sell Offering Notice assuming the
                           Project is free of all debt.

                  2.       The Buy-Sell Offeree shall have the option to elect
                           to do one of the following, and such option may be
                           exercised by notice (the "RESPONSE NOTICE") to the
                           Buy-Sell Offeror at any time within ninety (90) days
                           after its receipt of the Buy-Sell Offering Notice to
                           either:

                           (1)      sell its full interest in the Joint Venture
                                    to the Buy-Sell Offeror for an amount,
                                    determined by the Joint Venture's
                                    accountant, equal to the amount the Buy-Sell
                                    Offeree would have been entitled to receive
                                    if the Project had been sold for the
                                    Valuation and the proceeds of such sale were
                                    distributed in accordance with the terms of
                                    the JVA regarding the liquidation of the
                                    Joint Venture

                                      A-25
<Page>

                                    (reflecting, among other things, the
                                    repayment of any Deficit Loans), net of
                                    reasonable transaction expenses which would
                                    have been incurred if the Project had been
                                    sold for the Valuation; or

                           (2)      purchase the full interest in the Joint
                                    Venture of the Offeror for an amount,
                                    determined by the Joint Venture's
                                    accountant, equal to the amount the Offeror
                                    would have been entitled to receive if the
                                    Project had been sold for the Valuation and
                                    the proceeds of such sale were distributed
                                    in accordance with the terms of the JVA
                                    regarding the liquidation of the Joint
                                    Venture (reflecting, among other things, the
                                    repayment of any Deficit Loans), net of
                                    reasonable transaction expenses which would
                                    have been incurred if the Project had been
                                    sold for the Valuation.

                           (3)      If the Buy-Sell Offeree shall not exercise
                                    either of its options within such ninety
                                    (90) day period, then it shall be deemed to
                                    have exercised its option to sell its full
                                    interest in the Joint Venture to the
                                    Buy-Sell Offeror pursuant to SECTION
                                    11(A)(II)(1) above.

                  3.       The purchasing Venturer shall deposit into an escrow
                           account with the selling Venturer's attorney, a sum
                           equal to ten percent (10%) of the purchase price (the
                           "BUY-SELL DEPOSIT") for the selling Venturer's
                           interest as determined above within five (5) days
                           following the Response Notice or deemed election
                           pursuant to SECTION 11(A)(II)(3) above as security
                           for the purchase, which Buy-Sell Deposit shall be
                           paid to the selling Venturer at the closing of such
                           purchase as part of the purchase price.
                           Notwithstanding the foregoing, if the buy-sell is
                           triggered by the non-Defaulting Venturer by reason of
                           the other Venturer becoming a Defaulting Venturer,
                           such non-Defaulting Venturer shall not be required to
                           provide the Buy-Sell Deposit if it is the purchasing
                           Venturer. Any interest on the Buy-Sell Deposit shall
                           be credited to the purchasing Venturer unless such
                           purchasing Venturer defaults in which event the
                           interest shall go to the selling Venturer. Whichever
                           entity receives the interest shall pay all income
                           taxes thereon.

                  4.       The closing shall occur on the date which is one
                           hundred fifty (150) days following the Buy-Sell
                           Offering Notice. If either Venturer (the "NON-CLOSING
                           VENTURER") fails to close the purchase and sale
                           contemplated above on the closing date described
                           herein then the other Venturer (the "CLOSING
                           VENTURER") shall be entitled, (A) if the Non-Closing
                           Venturer is the seller, to the return of the Buy-Sell
                           Deposit and any accrued interest thereon, and/or to
                           seek specific performance or otherwise pursue its
                           remedies at law or in equity with respect to the
                           purchase and sale contemplated by such Buy-Sell
                           Offering Notice and Response Notice and (B) if the
                           Non-Closing Venturer is the purchaser, to keep the
                           Buy-Sell

                                      A-26
<Page>

                           Deposit as liquidated damages, to sell its interest
                           in the Joint Venture to any Qualified Third Party
                           (including a Competitor of the Non-Closing Venturer)
                           at any time within twenty-four (24) months after the
                           default of the Non-Closing Venturer without complying
                           with the provisions of this Section 10 and without
                           the consent of such Non-Closing Venturer and/or to
                           sell the Project on behalf of the Joint Venture to be
                           sold without the consent of the Non-Closing Venturer
                           and the net proceeds of any such sale shall be
                           distributed first to the Closing Venturer in an
                           amount equal to all losses, costs, expenses and
                           damages suffered by the Closing Venturer by reason of
                           such failure of the Non-Closing Venturer or in
                           connection with such sale and the remaining proceeds
                           shall be distributed in accordance with the
                           provisions of the JVA regarding liquidation of the
                           Joint Venture; provided, however, that if the
                           Non-Closing Venturer is the non-Defaulting Venturer,
                           the Closing Venturer (I.E., the Defaulting Venturer)
                           shall have no rights or remedies under this SECTION
                           11(A)(IV).

                  5.       On the closing date described above and at the
                           selling Venturer's attorneys' office in New York,
                           New, York,

                           (1)      the selling Venturer shall deliver to the
                                    purchasing Venturer a duly executed and
                                    acknowledged instrument of assignment
                                    conveying the interest of the selling
                                    Venturer to the purchasing Venturer or their
                                    designee, free and clear of all liens and
                                    encumbrances, which instrument shall contain
                                    surviving representations concerning the
                                    absence of such liens and encumbrances and
                                    that the selling Venturer has not taken any
                                    action on behalf of the Joint Venture in
                                    violation of the JVA and shall contain a
                                    provision indemnifying and holding the
                                    purchasing Venturer harmless from any loss,
                                    cost or expense (including reasonable
                                    attorneys' fees) it may incur by reason of
                                    any breach of such representations.
                                    Notwithstanding anything to the contrary
                                    contained in SECTION 17 hereof, the
                                    purchasing Venturer shall have the right to
                                    look to the selling Venturer and the direct
                                    and indirect owners of the selling Venturer
                                    for any breach of such representations, but
                                    only to the extent of the proceeds of such
                                    sale;

                           (2)      the selling Venturer shall pay all transfer,
                                    stamp, gains or similar taxes due in
                                    connection with the conveyance of its
                                    Interest;

                           (3)      the purchasing Venturer shall pay the
                                    purchase price for the selling Venturer's
                                    interest as determined above (less the
                                    Buy-Sell Deposit and as adjusted by the
                                    credits and apportionments herein set forth)
                                    in cash;

                                      A-27
<Page>

                           (4)      net cash flow to the date of closing shall
                                    be distributed in accordance with the
                                    provisions of the JVA, the benefit of which
                                    provisions shall survive any closing
                                    pursuant hereto for purposes of making or
                                    correcting any customary closing
                                    adjustments; and

                           (5)      the Venturers shall execute all amendments
                                    to fictitious name or similar certificates
                                    necessary to reflect the withdrawal of the
                                    selling Venturer from the Joint Venture, the
                                    admission of any new Venturer to the Joint
                                    Venture and, if applicable, the termination
                                    of the Joint Venture.

         2.       Disputes arising from any Major Decisions for which neither
                  Venturer timely delivers a Buy-Sell Offering Notice shall be
                  submitted to arbitration for resolution with thirty (30) days
                  after the expiration of the sixty (60) day period referred to
                  in SECTION 11(A)(I), above.

25.      WITHDRAWAL OR BANKRUPTCY.

         1.       No Venturer shall withdraw from the Joint Venture except in
                  the case of a Permitted Transfer or termination of the Joint
                  Venture.

         2.       If any Venturer (herein called the "FAILED VENTURER") shall at
                  any time admit or be adjudicated to be insolvent, file or have
                  filed a petition in bankruptcy, make an assignment for the
                  benefit of creditors, suffer or permit the appointment of a
                  receiver or trustee, dissolve, liquidate or fail to do
                  business for any reason, then the other Venturer shall have
                  the right and option, exercisable by notice in writing to the
                  Failed Venturer, its successors or representatives, to acquire
                  the Joint Venture interest of the Failed Venturer at a price
                  equal to the amount, determined by the Joint Venture's
                  accountants, the Failed Venturer would have been entitled to
                  receive if the Project had been sold for its Distress FMV, net
                  of reasonable transaction expenses which would have been
                  incurred if the Project had been sold for such Appraised FMV
                  (reflecting among other things, the repayment of any Deficit
                  Loans). "APPRAISED FMV" means the fair market value of the
                  Project as determined by a qualified reputable appraiser
                  chosen by the non-Failed Venturer provided that any such
                  appraisal shall be approved by a bankruptcy court having
                  proper jurisdiction where such approval is required by the
                  court. The reasonable costs of such appraisal and any other
                  costs incurred in connection with such appraisal and court
                  approval shall be deducted from the price payable for the
                  Failed Venturer's interest.

26.      TAX MATTERS.

         1.       For federal, state and local income tax purposes, all items of
                  taxable income, deduction, credit and loss of the Joint
                  Venture for each fiscal year of the Joint Venture shall be
                  allocated to each Venturer in accordance with the allocation
                  of

                                      A-28
<Page>

                  the corresponding item of profits and losses, except as may
                  otherwise be required under SECTION 13(D) below. The Joint
                  Venture shall be treated as a partnership for all such tax
                  purposes.

         2.       The Joint Venture shall, if requested by either Venturer, make
                  the election under Section 754 of the Internal Revenue Code of
                  1986, as the same may be amended from time to time (the
                  "CODE").

         3.       Building Owner Member shall be the "Tax Matters" partner as
                  defined in Section 6231(a)(7) of the Code, it being understood
                  that all tax decisions and elections for the Joint Venture
                  shall be agreed upon by both of the Venturers (except as
                  provided in SECTION 13(B) above).

         4.       If any property of the Joint Venture shall be reflected in the
                  capital accounts of the Joint Venture at a value that differs
                  from its adjusted basis for federal income tax purposes, the
                  profits and losses of the Joint Venture and items of income,
                  loss, deduction and gain shall be allocated among the
                  Venturers in a manner that eliminates such difference in
                  accordance with Section 704(c) of the Code and the Treasury
                  Regulations issued thereunder (and pursuant to Reg. ss.
                  1.704-1(b)(4)(i)) using the traditional method specified in
                  Treasury Regulations issued under Section 704(c) of the Code.

27.      BORROWING. Except as may be approved as a Major Decision, neither the
         Joint Venture, nor any Venturer on behalf of the Joint Venture, shall
         directly, or indirectly, borrow money or become obligated upon or
         liable for any monies borrowed, and shall not, as a Venturer, cause the
         Joint Venture to assume, guarantee or act as surety for any obligation
         or liability (whether for borrowed money or otherwise) of any other
         person without, in each case, the prior written consent of the
         Controlling Block.

28.      OUTSIDE TRANSACTIONS. Either Venturer may engage in or possess an
         interest in other business ventures of any nature or description,
         independently or with others, whether presently existing or hereafter
         created, including, but not limited to, the commercial and residential
         real estate businesses in all of their phases, which shall include,
         without limitation, the ownership, leasing, operation, management,
         syndication, servicing and/or development of commercial and residential
         real property, including property competitive with the Project, and
         neither Venturer shall have any rights in or to such independent
         ventures or the income or profits derived therefrom. Notwithstanding
         the foregoing, the Operating Venturer shall have a fiduciary duty to
         the other Venturer for the performance of its obligations under the
         JVA.

29.      FAIR MARKET VALUE. For purposes of determining "Fair Market Value" of
         the Project pursuant to SECTIONS 5(B)(IV) OR 10(E)(V) above or SECTION
         20(B)(V) below, the same, if not otherwise agreed upon by the
         Venturers, shall be submitted to and determined by binding "baseball"
         arbitration, as follows:

                                      A-29
<Page>

         1.       Each Venturer shall, within ten (10) days after a dispute
                  arises, (a) appoint a disinterested person who is a reputable
                  MAI (or its successor organization) appraiser (an "APPRAISER")
                  with at least 10 years experience in appraising major office
                  buildings in the Borough of Manhattan and (b) give notice of
                  such appointment to the other Venturer.

         2.       Such Appraisers shall either (i) within forty-five (45) days
                  after the later of the notices referred to in clause (a) have
                  been delivered, determine and promptly report to each Venturer
                  in writing the Fair Market Value of the Project, or (ii) if
                  they cannot agree within such forty-five (45) day period,
                  deliver separate reports to each Venturer within fifteen (15)
                  days of the expiration of such forty-five (45) day period.

         3.       If the two Appraisers cannot agree within the time frame set
                  forth in CLAUSE (B)(I) above, then they shall promptly jointly
                  appoint a third Appraiser who shall determine the Fair Market
                  Value of the Project by selecting either Venturer's designated
                  Appraiser's Fair Market Value determination according to
                  whichever of the two valuations is closer to the actual Fair
                  Market Value in the opinion of such third Appraiser (I.E. the
                  third Appraiser shall not choose a third determination).

         4.       If the two Appraisers shall fail to agree upon the designation
                  of a third Appraiser within thirty (30) days from the
                  expiration of the time frame set forth in clause (b)(i), then
                  either Venturer may apply to the AAA for the designation of
                  such Appraiser and if the AAA is unable or fails to designate
                  a third Appraiser within ten (10) Business Days after a
                  request therefor, then either Venturer may apply to the
                  Supreme Court in New York County or to any other court having
                  jurisdiction for the designation of such Appraiser.

         5.       If a Venturer who shall have a right to appoint an Appraiser
                  fails or refuses to do so within the time frame specified
                  herein and such failure continues for five (5) Business Days
                  after notice from the non-failing Venturer stating in boldface
                  capitalized letters that such failure to appoint such
                  Appraiser within such five (5) Business Day period will result
                  in the non-failing Venturer's right to seek the appointment by
                  AAA or a court of a single Appraiser who will determine the
                  Fair Market Value, then the non-failing Venturer may apply to
                  AAA for the designation of a single Appraiser and if AAA is
                  unable or fails to designate such Appraiser within ten (10)
                  Business Days after a request therefor, such non-failing
                  Venturer may apply to the Supreme Court in New York County or
                  to any other court having jurisdiction for the designation of
                  such Appraiser and the determination of such single appointed
                  Appraiser alone shall control.

         6.       The appraisal shall be conducted in the City of New York.

                                      A-30
<Page>

         7.       The expense of the arbitration and the fees and disbursements
                  of the third Appraiser shall be shared equally by the
                  Venturers, but each Venturer shall be responsible for the fees
                  and disbursements of the Appraiser it appoints and its own
                  attorneys and the expenses of its own proof. The Venturers
                  shall execute, acknowledge and deliver such other and further
                  documents and instruments as may be necessary to submit such
                  dispute to arbitration.

         8.       The Appraisers shall have no power to modify any of the
                  provisions of the JVA or this Agreement and their jurisdiction
                  is limited accordingly. Each Appraiser shall be an independent
                  real estate appraiser who is a member of the American
                  Institute of Appraisers (or any successor organization) having
                  at least ten (10) years then current experience in the
                  appraisal of land and commercial buildings in the Borough of
                  Manhattan, New York City.

         9.       The Venturers promptly shall execute, acknowledge and deliver
                  an agreement confirming the Fair Market Value of the Project,
                  as so determined, but their failure to do so shall not affect
                  such determination.

30.      LIMIT OF LIABILITY. Each Venturer shall look solely to the interest of
         the other Venturer in and to the Joint Venture in the event of breach
         or default by the other Venturer pursuant to the provisions of the
         Joint Venture Agreement; PROVIDED, HOWEVER, that the foregoing
         provisions of this SECTION shall not be deemed or construed to limit
         (i) any of the rights or options granted to a Non-Withholding Venturer
         pursuant to SECTION 6 hereof, (ii) the liability of either Venturer to
         the other for any negligent act or omission or any wrongful act, (iii)
         any claims asserted by any third party or third parties against the
         Joint Venture or either Venturer and the right of the Venturers to
         contribution from each other in respect of any such claims, (vi) the
         liability of Building Owner Member for its indemnification obligations
         pursuant to SECTION 5(B)(III)(7) hereof; (vii) the liability of the
         Offeror for the breach of the representations pursuant to SECTION
         10(B)(II)(1) hereof; (viii) the liability of the selling Venturer for
         the breach of the representations pursuant to SECTION 11(A)(V)(1)
         hereof; (ix) the liability of the Offeror for the breach of the
         representations provided in SECTION 10(B)(II)(1) hereof as such
         representations relate to a Transfer to a Competitor pursuant to
         SECTION 10(C)(III) hereof or the liability of the Upstream Offeror for
         the breach of the representations provided in SECTION 10(B)(II)(1)
         hereof as such representations relate to Upstream Competitor Transfer
         pursuant to SECTION 10(E) hereof; (x) the rights of either Venturer to
         the Deposit pursuant to SECTION 10(b) hereof, the deposit with respect
         to Transfers to Competitors pursuant to SECTION 10(C) hereof, the
         deposit with respect to Restricted Upstream Competitor Transfers
         pursuant to SECTION 10(E) hereof or the Buy-Sell Deposit pursuant to
         SECTION 11(A) hereof; and (xi) rights under the Guaranty or the Pledge.

31.      LEASING AGENT.

         1.       Provided the conditions set forth in SECTION 18(B) below have
                  been satisfied, then RCMC, or its Affiliate shall be the
                  leasing agent (the "LEASING AGENT") for the

                                      A-31
<Page>

                  Joint Venture other than with respect to signage pursuant to a
                  leasing agreement on fair market financial terms taking into
                  account, among other things, RCMC's (or such Affiliate's) then
                  market share and expertise in the leasing of commercial space
                  in Manhattan and otherwise substantially incorporating the
                  non-monetary terms of any leasing agreement with RCMC (or such
                  Affiliate) entered into by Building Owner in accordance with
                  the Ground Lease, or if such leasing agreement shall not have
                  been entered into, otherwise on commercially reasonable terms
                  and in all cases in form and substance satisfactory to the
                  Building Owner Member (the "RCMC LEASING AGREEMENT").

         2.       The Joint Venture shall have no obligation to enter into the
                  RCMC Leasing Agreement unless the following conditions are
                  satisfied (and the RCMC Leasing Agent may be terminated if, at
                  any time, such conditions do not continue to be satisfied):

                  1.       Rock-Forty-Ninth LLC or another Wholly Owned
                           Affiliate of RGI shall maintain at least a
                           twenty-five percent (25%) interest in the Joint
                           Venture;

                  2.       no prior leasing agreement or management agreement
                           with respect to the Project shall have been
                           terminated due to a default by RCMC (or any Affiliate
                           of RGI);

                  3.       RCMC (or such managing Affiliate) is a Wholly-Owned
                           Affiliate of RGI and (A) 25% or more of the
                           beneficial ownership in RGI is not directly or
                           indirectly owned by a single Competitor of Building
                           Owner Member and (B) 37.5% or more of the beneficial
                           ownership in RGI is not directly or indirectly owned
                           by one or more Competitors of Building Owner Member
                           who, directly or through their Affiliates, are in the
                           same primary line of business (and that line of
                           business is in competition with a primary line of
                           business of Building Owner Member or an Affiliate of
                           Building Owner Member), whether or not such
                           Competitors are Affiliated with each other and (C)
                           RGI is not directly or indirectly controlled by any
                           single Competitor of Building Owner Member or two or
                           more Competitors of the Building Owner Member acting
                           in concert with each other. In the event the
                           conditions set forth in this clause (iii) are
                           satisfied, but a Competitor of Building Owner Member
                           owns a direct or indirect interest in RGI (which does
                           not rise to the levels specified in clauses (A)
                           through (C), above), RGI and RCMC (or such leasing
                           agent Affiliate) shall provide an agreement
                           reasonably satisfactory to Building Owner Member in
                           which RGI and RCMC (or such leasing agent Affiliate)
                           agree in writing not to disclose any information
                           regarding the business of the Building Owner Member
                           or any of its Affiliates (as opposed to the financial
                           or physical operation of the Project) to such
                           Competitor or Competitors of Building Owner Member;

                                      A-32
<Page>

                  4.       RCMC (or such leasing agent Affiliate) is the leasing
                           agent of at least 4 million square feet of commercial
                           space in Manhattan (exclusive of the Building); and

                  5.       the Joint Venture owns the Project.

         3.       The direct or indirect of beneficial ownership interest in RGI
                  owned or controlled by a Competitor of Building Owner Member
                  and Affiliates of such Competitor shall be aggregated for all
                  purposes of clause (iii) above (including any "control" test).
                  Any dispute over the terms of the RCMC Leasing Agreement which
                  has not been resolved within sixty (60) days after Building
                  Owner Member on behalf of the Joint Venture has delivered to
                  Land Owner a form of such agreement, shall be resolved by
                  arbitration in accordance with SECTION 4 of the Agreement.

32.      AFFILIATECONTRACTS. In the event the Joint Venture enters into any
         agreement with a Venturer or an Affiliate of a Venturer (subject to the
         consent of the Controlling Block to any such agreement) except for
         those agreements specifically provided for and consented to in this
         Agreement, including, without limitation, the RCMC Management
         Agreement, the RCMC Leasing Agreement, the MS Lease Option, or any
         space lease executed in connection therewith and the Land Owner's Lease
         Option, or any space lease executed in connection therewith (any such
         agreement being referred to as an "AFFILIATE CONTRACT"), then the
         following provisions shall apply with respect to such Affiliate
         Contract:

         1.       In case of any default under an Affiliate Contract or any
                  dispute or matter requiring an interpretation on behalf of the
                  Joint Venture under an Affiliate Contract:

                  1.       the other Venturer shall have the sole right to
                           enforce such Affiliate Contract and to exercise all
                           remedies under such Affiliate Contract without the
                           consent of the Affiliated Venturer and to make any
                           such interpretation and resolve any such dispute; and

                  2.       in the case of the RCMC Management Agreement or RCMC
                           Leasing Agreement, or any other management agreement,
                           leasing agreement or other service or material supply
                           contract, the Venturer not Affiliated with such party
                           shall have the right, upon the termination thereof,
                           to enter into a replacement agreement with third
                           party not an Affiliate of either Venturer and on such
                           fair market terms and conditions as such
                           non-Affiliate Venturer may determine in its sole good
                           faith discretion, without the consent of such
                           Affiliated Venturer.

         2.       The terms and conditions of each Affiliate Contract, any
                  modification thereof, and the negotiation of such Affiliate
                  Contracts and any arbitration arising out of the terms
                  thereof, or waiver of any obligation of a party to such
                  agreement, and any

                                      A-33
<Page>

                  direction, consent and approval required thereunder, shall be
                  subject to the reasonable approval of the non-Affiliated
                  Venturer.

33.      EVENTS OF DEFAULT; REMEDIES.

         1.       Each of the following events, and with respect to CLAUSES (I)
                  and (II) below only, if the same shall continue for three (3)
                  Business Days after an additional notice is delivered from the
                  Venturer not committing the act set forth below to the
                  Venturer which committed said act, shall constitute an "Event
                  of Default" hereunder:

                  1.       if any Venturer fails to make any contribution or
                           payment which it is required to make under this
                           Agreement within ten (10) Business Days after notice
                           from the other Venturer that such Venturer failed to
                           make such contribution or payment on the due date
                           therefor; provided however that (a) any such failure
                           to make a payment or contribution shall not
                           constitute a default or Event of Default, if, in
                           accordance with SECTION 6(B)(I) hereof, the
                           Non-Withholding Venturer contributes for its own
                           capital account the amount of any such Deficiency
                           with respect to such payment or contribution not so
                           made by the Withholding Venturer or (b) if the
                           Non-Withholding Venturer makes a Deficit Loan in
                           accordance with SECTION 6(B)(II) hereof with respect
                           to such payment or contribution not so made by the
                           Withholding Venturer, and provided the non-Defaulting
                           Venturer has not delivered a Buy-Sell Offering Notice
                           in accordance with SECTION 11(A) hereof, then any
                           such default or Event of Default shall be deemed
                           cured from and after the date upon which any such
                           Deficit Loan (and all interest accrued thereon) is
                           paid in full by the Withholding Venturer;

                  2.       if any Venturer defaults in the observance or
                           performance of any term, covenant or condition of
                           this Agreement, other than a default in making a
                           contribution or payment and such default continues
                           for thirty (30) days after such Venturer receives
                           notice thereof from another Venturer (or, if such
                           default cannot reasonably be cured within such thirty
                           (30) day period by virtue of the nature of such
                           default, such Venturer does not commence to cure such
                           default within such period and thereafter diligently
                           prosecute such cure to completion); or

                  3.       if any act or omission of a Venturer causes an event
                           of default (beyond applicable notice and grace
                           periods) to occur under any indebtedness of the Joint
                           Venture; or

                  4.       any default by a Venturer under the right of first
                           offer or buy-sell option contained herein; or

                  5.       if any Venturer withdraws from the Joint Venture or
                           becomes a Failed Venturer.

                                      A-34
<Page>

         2.       If a Venturer (the "DEFAULTING VENTURER") has caused an Event
                  of Default hereunder, then the other Venturer (the
                  "NON-DEFAULTING VENTURER") may exercise any one or more of the
                  remedies described below:

                  1.       institute suit in any court of competent jurisdiction
                           to obtain (i) specific performance of the obligations
                           of the Defaulting Venturer under this Agreement, (ii)
                           reimbursement for all costs of court and reasonable
                           attorneys' fees thereby incurred and (iii) damages,
                           if any, resulting to the Joint Venture or the
                           Non-Defaulting Venturer from such Event of Default by
                           the Defaulting Venturer plus interest thereon at the
                           Lease Interest Rate from the date incurred until the
                           date paid;

                  2.       cure the Event of Default, in which case the
                           Defaulting Venturer shall pay to the Non-Defaulting
                           Venturer, on demand, the cost of such cure (including
                           any interest on funds borrowed for the purpose)
                           together with interest thereon at the Lease Interest
                           Rate from the date incurred until the date paid;

                  3.       elect to terminate the Joint Venture;

                  4.       exercise the buy-sell option pursuant to SECTION 11
                           hereof; and/or

                  5.       exercise the right to purchase the Defaulting
                           Venturer's interest for an amount equal to the
                           amount, determined by the Joint Venture's
                           accountants, the Defaulting Venturer would have been
                           entitled to receive if the Project had been sold for
                           its Fair Market Value determined in accordance with
                           SECTION 16 hereof (reflecting, among other things,
                           the repayment of Deficit Loans), less the costs of
                           the appraisal and any other costs incurred by the
                           Non-Defaulting Venturer in connection with the
                           appraisal and less all losses, costs, expenses and
                           damages suffered by the Non-Defaulting Venturer by
                           reason of such default of the Defaulting Venturer.

         3.       Each of the Venturers hereby assigns and grants to the other
                  Venturer a first priority lien upon, and a security interest
                  in, the interest of such Venturer in the Joint Venture and all
                  amounts, payments and proceeds becoming distributable or
                  payable to such Venturer by the Joint Venture, as collateral
                  security for the payment and performance of such Venturer's
                  obligations under the JVA (including, without limitation, all
                  of such Venturer's obligations with respect to the right of
                  first offer and buy-sell provision herein). Each Venturer
                  shall execute such financing statements as the other Venturer
                  shall reasonably request in order to perfect and maintain the
                  perfection of the lien and security interest herein granted.
                  Any transfer of the Joint Venture interest of a Venturer shall
                  be subject to such lien and security interest. Each Venturer
                  shall notify each other Venturer

                                      A-35
<Page>

                  within thirty (30) days of any change in its chief executive
                  offices from that set forth in the JVA.

         4.       If (and only if) a Venturer becomes a Defaulting Venturer, all
                  amounts, payments and proceeds which may become distributable
                  or payable by the Joint Venture to such Defaulting Venturer
                  which are secured by a security interest created pursuant to
                  the above paragraph, shall be paid to the Non-Defaulting
                  Venturer until all amounts due to the Non-Defaulting Venturer
                  have been paid in full, but shall nevertheless be deemed to
                  have been distributed to the Defaulting Venturer.

34.      ESTOPPEL CERTIFICATES.

         1.       Each Venturer agrees at any time and from to time, upon not
                  less than ten (10) days' prior request by the other Venturer
                  to execute, acknowledge and deliver to such Venturer a
                  statement in writing certifying (a) that the JVA is unmodified
                  and in full force and effect (or if there have been
                  modifications, that the same is in full force and effect as
                  modified and stating the modifications), (b) the Percentage
                  Interests of the Venturers and (c) whether or not, to the best
                  knowledge of the Venturer giving such certificate, there is
                  any existing default or Event of Default under the JVA on the
                  part of the other Venturer and, if so, specifying each such
                  default or Event of Default, it being intended that any such
                  statement delivered pursuant to this SECTION 21 may be relied
                  upon the Venturer requesting such statement and by any
                  prospective purchaser of such Venturer's interest in the Joint
                  Venture.

         2.       If a Venturer shall fail or refuse to execute, acknowledge and
                  deliver the statement required under this SECTION 21 within
                  twenty (20) days after request from the other Venturer, the
                  requesting Venturer shall have the right to send a Deemed
                  Approval Notice with the certifications set forth below, and
                  if such failure or refusal continues for five (5) Business
                  Days after such Deemed Approval Notice, it shall be deemed
                  that such Venturer has certified that (i) the JVA is
                  unmodified and in full force and effect and (ii) to the best
                  of its knowledge there are no existing defaults or Events of
                  Default on the part of the other Venturer to the JVA.

35.      COOPERATION BY VENTURERS. Each Venturer shall reasonably cooperate with
         the other Venturer in connection with any transfer of such Venturer's
         interest in accordance with SECTION 10 hereof (including the right of
         first offer provisions thereof), SECTION 20(B)(V) hereof, the exercise
         of the buy-sell right in accordance with SECTION 11 hereof or the
         exercise of the right to purchase any Failed Venturer's interest in
         accordance with SECTION 12 hereof and shall cause the Joint Venture's
         accountants to provide the determinations of net cash flow, buy-sell
         prices and the purchase price under said SECTION 12 to be determined
         within the time frames contemplated under said SECTIONS 10, 11 and 12.

                                      A-36
<Page>

36.      OTHER TERMS. The JVA shall contain such other reasonable additional
         terms, conditions and provisions agreed to by the parties which are not
         inconsistent with the terms of this EXHIBIT A, including, without
         limitation, the incorporation of additional provisions, mechanisms and
         procedures in furtherance of the terms hereof.

                                      A-37
<Page>

                                     ANNEX I

                              CERTAIN DEFINED TERMS

Term                                                                        Page
----                                                                        ----

AAA ..........................................................................6
Affiliate Contract.........................................................A-34
Agreement ....................................................................1
Apportioned Continuing Lease Costs..........................................A-4
Appraiser .................................................................A-30
Budget ....................................................................A-16
Building Owner ...............................................................1
Building Owner Member.......................................................A-1
Buy-Sell Deposit ..........................................................A-27
Buy-Sell Offeree ..........................................................A-26
Buy-Sell Offering Notice...................................................A-26
Buy-Sell Offeror ..........................................................A-26
Closing Venturer ..........................................................A-27
Code ......................................................................A-29
Competitor Sale Notice.....................................................A-20
Competitor Sale Response...................................................A-21
Continuing Lease .............................................................9
Continuing Leases ............................................................9
Continuing Project Obligations..............................................A-1
Contract Excess .............................................................17
Controlling Block .........................................................A-11
Cost Notice .................................................................15
Cost Objection ..............................................................15
Defaulting Venturer........................................................A-35
Deficiency ................................................................A-10
Deficit Loan ..............................................................A-10
Deposit ...................................................................A-18
Depreciable Life ............................................................13
Direct Transfer ...........................................................A-17
Disputed Amount .............................................................16
Distress FMV ..............................................................A-29
Due Diligence Certificate.....................................................3
Due Diligence Documents.......................................................3
Failed Venturer ...........................................................A-29
Fair Market Value .........................................................A-30
Financial Statements..........................................................3
First Budget ..............................................................A-16
Ground Lease .................................................................1
Incomplete Shared Capital Improvements.......................................13

                                       i
<Page>

Joint Venture ................................................................2
JV Option Agreement.........................................................A-1
JVA ..........................................................................2
Land .........................................................................1
Land Owner ...................................................................1
Land Owner's Lease Option....................................................10
Leasing Agent .............................................................A-32
Major Decisions ...........................................................A-13
MS ..........................................................................10
MS Lease ....................................................................10
MS Lease Option .............................................................10
MSDW ......................................................................A-13
Non-Closing Venturer.......................................................A-27
Non-Defaulting Venturer....................................................A-35
Non-Withholding Venturer...................................................A-10
notice .......................................................................7
Offer Price ...............................................................A-18
Offeree ...................................................................A-18
Offeror ...................................................................A-18
Operating Venturer.........................................................A-12
Option Effective Date.........................................................1
Percentage Interests........................................................A-9
Present Tax Contest.........................................................A-6
Prohibited Transfer........................................................A-17
Project ......................................................................2
Proposing Venturer.........................................................A-15
Purchase Notice ...........................................................A-18
Qualified Third Party......................................................A-20
RCMC Leasing Agreement.....................................................A-32
RCMC Management Agreement..................................................A-12
Reimbursable Amount..........................................................14
Reimbursement Notice.........................................................14
Requested Amount ...........................................................A-9
Responding Venturer........................................................A-15
Response Notice ...........................................................A-26
Rule ........................................................................19
Sale Notice ...............................................................A-18
Shared Capital Improvement...................................................13
Threshold Amount ............................................................14
Upstream Notice ...........................................................A-23
Upstream Offeree ..........................................................A-23
Upstream Offeror ..........................................................A-23
Upstream Offeror's Interest................................................A-24

                                       ii
<Page>

Upstream Recission Notice..................................................A-25
Upstream Response .........................................................A-24
Valuation .................................................................A-26
Venturer ...................................................................A-1
Venturers ..................................................................A-1
Withholding Venturer........................................................A-9

                                      iii<PAGE>

                                                                  Exhibit 4.1

================================================================================

                                 AMENDMENT NO. 1

                          Dated as of February 28, 2002

                                     TO THE
                                RIGHTS AGREEMENT

                         Dated as of September 29, 2000

                                     Between

                                   AVAYA INC.

                                       and

                              THE BANK OF NEW YORK

                                  Rights Agent

================================================================================

<PAGE>

                  AMENDMENT NO. 1 (this "Amendment"), dated as of February 28,
2002, to the Rights Agreement(the "Agreement"), dated as of September 29, 2000,
between AVAYA INC., a Delaware corporation (the "Company"), and THE BANK OF NEW
YORK, as Rights Agent (the "Rights Agent").

                  The board of directors of the Company (the "Board of
Directors") has authorized and declared a dividend of one preferred share
purchase right (a "Right") for each Common Share (as hereinafter defined) of the
Company outstanding on September 29, 2000 (the "Record Date"), each Right
representing the right to purchase one one-thousandth of a Preferred Share (as
hereinafter defined), upon the terms and subject to the conditions herein set
forth, and has further authorized and directed the issuance of one Right
(subject to adjustment as provided herein) with respect to each Common Share
that shall become outstanding between the Record Date and the earlier of the
Distribution Date and the Expiration Date (as such terms are hereinafter
defined); PROVIDED, however, that Rights may be issued with respect to Common
Shares that shall become outstanding after the Distribution Date and prior to
the Expiration Date in accordance with Section 22 of the Agreement. Capitalized
terms not otherwise defined herein shall have the meaning ascribed to them in
the Agreement.

                  Accordingly, in consideration of the premises and the mutual
agreements herein set forth, the parties hereby agree as follows:

                  SECTION 1.  AMENDMENTS TO THE AGREEMENT.  The Agreement is
hereby amended as follows:

                  (a) Section 1(a) of the Agreement is hereby amended in its
entirety to read as follows:

                  "(a) "Acquiring Person" shall mean any Person who or which,
together with all Affiliates and Associates of such Person, shall be the
Beneficial Owner of 15% or more of the Common Shares of the Company then
outstanding, but shall not include (i) the Company, any Subsidiary of the
Company, any employee benefit or compensation plan of the Company or of any
Subsidiary of the Company, or any Person holding Common Shares for or pursuant
to the terms of any such plan, or prior to the Spinoff Date, any Lucent Entity
(each, an "Exempt Person") or (ii) any such Person who has become and is the
Beneficial Owner of 15% or more of the Common Shares of the Company then
outstanding solely as a result of (A) the acquisition by such Person or one or
more of its Affiliates or Associates of Beneficial Ownership of additional
Common Shares if such acquisition was made in the good faith belief that such
acquisition would not (x) cause

<PAGE>

the Beneficial Ownership by such Person, together with its Affiliates and
Associates, to be 15% or more of the Common Shares of the Company outstanding at
the time of such acquisition and such good faith belief was based on the good
faith reliance on information contained in publicly filed reports or documents
of the Company that are inaccurate or out-of-date or (y) otherwise cause a
Distribution Date or the adjustment provided for in Section 11(a) to occur or
(B) the acquisition by such Person or one or more of its Affiliates or
Associates of Beneficial Ownership of additional Common Shares of the Company if
the Board of Directors determines that such acquisition was made in good faith
without the knowledge by such Person or Affiliates or Associates that such
Person would thereby become an Acquiring Person, which determination of the
Board of Directors shall be conclusive and binding on such Person, the Rights
Agent, the holders of the Rights and all other Persons. Notwithstanding the
foregoing, if any Person that is not an Acquiring Person due to (ii)(A) or
(ii)(B) of the prior sentence does not reduce its percentage of Beneficial
Ownership of Common Shares of the Company to less than 15% by the Close of
Business on the tenth calendar day after notice from the Company (the date of
notice being the first day) that such Person's Beneficial Ownership of Common
Shares would make it an Acquiring Person, such Person shall, at the end of such
ten calendar day period, become an Acquiring Person (and such clause (ii)(A) or
(ii)(B) shall no longer apply to such Person). For purposes of this definition,
the determination whether any Person acted in "good faith" shall be conclusively
determined by the Board of Directors. Notwithstanding anything in this
definition of Acquiring Person to the contrary, no Person shall become an
"Acquiring Person" as the result of an acquisition of Common Shares by the
Company which, by reducing the number of shares outstanding, increases the
proportionate number of shares beneficially owned by such Person to 15% or more
of the Common Shares of the Company then outstanding; PROVIDED, HOWEVER, that if
a Person shall become the Beneficial Owner of 15% or more of the Common Shares
of the Company then outstanding by reason of share acquisitions by the Company
and shall, after such share acquisitions by the Company, become the Beneficial
owner of any additional Common Shares of the Company (other than pursuant to a
dividend or distribution paid or made by the Company on the outstanding Common
Shares or pursuant to a split or subdivision of the outstanding Common Shares),
then such Person shall be deemed to be an "Acquiring Person" unless upon
becoming the Beneficial Owner of such additional Common Shares such Person does
not beneficially own 15% or more of the Common Shares then outstanding."

                  (b)      Section 3(a) of the Agreement is amended in its
entirety to read as follows:

<PAGE>

                  "(a) Until the Close of Business on the earlier of (i) the
tenth day after the Shares Acquisition Date or (ii) such date, if any, as may be
designated by the Board of Directors following the commencement of, or first
public disclosure of an intent to commence, a tender or exchange offer by any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit or compensation plan of the Company or of any Subsidiary of the Company,
any Person holding Common Shares for or pursuant to the terms of any such plan,
or prior to the Spinoff Date, any Lucent Entity) for outstanding Common Shares,
if upon consummation of such tender or exchange offer such Person would be the
Beneficial Owner of 15% or more of the outstanding Common Shares (the earlier of
such dates being herein referred to as the "Distribution Date"), (x) the Rights
will be evidenced by the Book-Entries, or certificates for, Common Stock
registered in the name of the holders of Common Stock (together with, in the
case of Book-Entries representing, or the certificates for, Common Stock
outstanding as of the Record Date, the Summary of Rights) and not by separate
Book-Entries or Rights Certificates and the record holders of the Common Stock
represented by such Book-Entries or certificates shall be the record holders of
the Rights represented thereby, and (y) the Rights will be transferable only in
connection with the transfer of Common Shares. Until the Distribution Date (or,
if earlier, the Expiration Date), transfer on the Company's stock ownership
records of any Common Stock represented by a Book-Entry or the surrender for
transfer of any certificate for Common Stock shall constitute the surrender for
transfer of the Right or Rights associated with the Company Stock evidenced
thereby, whether or not accompanied by a copy of the Summary of Rights."

                  SECTION 2. GOVERNING LAW. This Amendment shall be deemed to be
a contract made under the laws of the State of Delaware and for all purposes
shall be governed by and construed in accordance with the laws of such State
applicable to contracts to be made and performed entirely within such State.

                  SECTION 3. COUNTERPARTS. This Amendment may be executed in any
number of counterparts and each of such counterparts shall for all purposes be
deemed to be an original, and all such counterparts shall together constitute
but one and the same instrument.

                  SECTION 4.  DESCRIPTIVE HEADINGS.  Descriptive headings of the
several Sections of this Amendment are inserted for convenience only and shall
not control or affect the meaning or construction of any of the provisions
hereof.

<PAGE>

                  IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be duly executed and attested, all as of the day and year first
above written.

                                            AVAYA INC.,

                                              By /s/ Pamela F. Craven
                                                 ------------------------------
                                                 Name:  Pamela F. Craven
                                                 Title: Senior Vice President

Attest:

  By  /s/ Eric Sherbet
      ----------------------------
    Name:  Eric Sherbet
    Title: Assistant Secretary

                                            THE BANK OF NEW YORK,

                                              by  /s/ JAMES KISZKA
                                                 ------------------------------
                                                 Name:  James Kiszka
                                                 Title: Vice President

Attest:

  by /s/ MICHAEL BLANKMAN
     ------------------------------
     Name:  Michael Blankman
     Title: Vice President

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