Document:

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                                                               Exhibit 10(i)F(3)

                             KINGS PLAZA MANAGEMENT
                                    AGREEMENT

            THIS KINGS PLAZA MANAGEMENT AGREEMENT dated as of the 31 day of May,
2001 (the "Management Agreement" between ALEXANDER'S KINGS PLAZA LLC, a Delaware
limited liability company having an office at 210 Route 4 East, Paramus, New
Jersey 07652 ("Owner") and VORNADO MANAGEMENT CORP., a New Jersey corporation
having an office at 210 Route 4 East, Paramus, New Jersey 07652 ("Manager").

            IN CONSIDERATION of the mutual promises and covenants herein
contained. Owner and Manager agree as follows:

                                   ARTICLE I

                             Appointment of Manager

            A. Owner hereby appoints Manager, on the conditions and for the term
hereinafter provided, to act for it in the operation, maintenance and management
of the Kings Plaza Property identified on Exhibit A attached hereto and made a
part hereof (the "Property"), which management duties are more particularly
described in Article IV. Manager hereby accepts said appointment to the extent
of, and subject to, the conditions set forth below.

            B. Owner and Manager hereby acknowledge that affiliates of Owner and
Manager have heretofore entered into that certain Real Estate Retention
Agreement, dated as of July 20, 1992 (the "Retention Agreement"), whereby
Vornado Realty Trust, as successor in interest to Vornado, Inc., has agreed to
act as leasing agent with respect to, among other things, the space at the
Property currently leased to Sears, Roebuck & Co.

                                   ARTICLE II

                                      Term

            A. The term of this Agreement shall commence on the date hereof and
shall continue until midnight on the date immediately following the first
anniversary of the date hereof (the "Initial Expiration Date") unless this
Agreement shall be terminated and the obligations of the parties hereunder shall
sooner cease and terminate, as hereinafter provided; provided, however, that the
term of this Management Agreement shall automatically extend for consecutive
one-year periods following the Initial Expiration Date unless Manager or Owner
provides the other with written notice, at least six months prior to the
beginning of any such additional one-year period, of its election to terminate
this Management Agreement. The amount of the Management Fee (as hereinafter
defined) shall be subject to review by the parties at the end of the initial
term and at the end of each one-year term thereafter.
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                                  ARTICLE III

                                 Management Fee

            A. Owner shall pay Manager, as Manager's entire compensation for the
services rendered hereunder in connection with the management of the Property, a
management fee (the "Management Fee") equal to (i) $300,000, per annum, payable
in equal monthly installments, in arrears, in the amount of $25,000, each on the
tenth day of each calendar month beginning with the first calendar month after
the date hereof and (ii) 3% of the gross income derived from the Property,
payable quarterly in arrears. As used in the preceding sentence, "gross income"
means all revenues of any kind and nature (including without limitation, all
minimum and percentage rents actually received), whether ordinary or
extraordinary, foreseen or unforeseen, received or accrued form the use and/or
occupancy of the improvements constituting the Property or any part thereof,
exclusive of parking revenues and exclusive of monies received or accrued from
any occupants or users of any part of such improvements for reimbursement for
expenses of the Property, including but not limited to real estate taxes, common
area maintenance charges, insurance or utilities as provided in the space leases
for tenants. "Gross income" shall not include proceeds of any sale, refinancing,
condemnation or insured casualty in respect of the Property." In the event that
this Agreement shall commence on a date other than the first day of a calendar
month or shall terminate on a date other than the last day of a calendar month,
the installment of the Management Fee payable for that month shall be prorated
for the actual number of days that this Agreement is effective in that calendar
month.

            B. Manager shall receive no commissions, fees or other compensation
(other than the Management Fee) in connection with any leasing or sale of any
part of or the entire Property or the procuring of any financing or refinancing
with respect thereto; provided, however, that nothing contained herein shall in
any way restrict the commissions, fees and other compensation otherwise payable
to any affiliate of Manager by Owner or its affiliates pursuant to the Retention
Agreement.

            C. In the event that Manager desires to provide services not
required to be performed hereunder ("Additional Services") for the benefit of a
tenant of the Property, Manager shall notify Owner in advance of its intention
to provide Additional Services to a tenant or tenants where those services are
substantial in nature. Owner shall have the right to prohibit Manager from
undertaking such services, if, in its judgment, the performance by Manager of
the Additional Services would adversely affect the professional relationship and
duties of Manager created by this Agreement.

                                   ARTICLE IV

                               Management Services

            A. Manager agrees to operate and manage the Property and to perform.
or cause to be performed by outside contractors and under Manager's supervision,
the following functions on behalf of Owner in an efficient and diligent manner
using the same standard of care, including bidding and selection processes,
segregation of funds. internal controls and internal

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auditing, used by Vornado Realty Trust in connection with its business and in
connection with properties owned and managed by Vornado Realty Trust:

                  1. Preparing, or causing to be prepared at Owner's expense,
            and filing all income, franchise and other tax returns relating to
            the Property required to be filed by Owner.

                  2. Keeping true and complete books of account in which shall
            be entered fully and accurately each transaction of Owner's business
            relating to the Property. The books shall be kept in accordance with
            the accrual method of accounting, and shall reflect all transactions
            of Owner's business relating to the Property.

                  3. Except as otherwise provided hereunder, procuring, at
            Owner's expense and at the direction of Owner or the Owner's
            insurance brokers or insurance advisors, any insurance required or
            desirable in connection with Owner's business relating to the
            Property or the employees required to operate Owner's business
            relating to the Property and errors and omissions insurance for
            Manager, under which Owner shall be the sole beneficiary. Manager
            shall not settle any claim for a settlement amount in excess of
            $100,000 without the approval of Owner.

                  4. Providing all general bookkeeping and accounting services
            required by the provisions of this Agreement at the expense of
            Manager. Any independent certified public accountant engaged by
            Manager shall be subject to the approval of Owner and all fees and
            expenses payable to such accountant shall be at Owner's expense.
            Manager shall maintain separate books and records in connection with
            its management of the Property under this Management Agreement,
            which books and records shall be kept in accordance with generally
            accepted accounting principles. Owner shall have the right to
            examine or audit the books and records at reasonable times and
            Manager will cooperate with Owner in connection with any such audit.

                  5. Investing funds not otherwise required to pay the costs of
            day-to-day maintenance and operation of the Property or in the
            operation of Owner's business pursuant to guidelines set by Owner.

                  6. Repairing, making replacements and maintaining the Property
            and all common areas at the Property and purchasing all materials
            and supplies that Manager deems necessary to repair and operate and
            maintain the Property, in order that the Property shall remain in
            good, sound and clean condition, and making such improvements,
            construction, changes and additions to the Property (including
            capital improvements), as Manager deems advisable, provided that
            Manager shall receive approval of Owner prior to undertaking any
            improvements, construction, changes or additions to the Property.
            Owner shall pay all fees, costs and expenses incurred by Manager in
            connection with the retention of outside contractors and suppliers
            for the Performance of all repairs, replacements and

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            maintenance of the Property. In the event that Owner decides to
            remodel or extensively refurbish the Property, or any part thereof.
            Manager shall be entitled to receive additional compensation for
            services required to be rendered by it for services such as
            supervision of construction and allocation of overhead expense (i)
            to the extent that tenants at the Property reimburse Owner for such
            costs and (ii) if such costs are not reimbursable by the tenants and
            such remodeling or refurbishment shall be on a significant scale and
            shall require significant work by the Manager, the amount of such
            additional compensation payable to Manager shall be equal to
            Manager's costs in connection with such work, plus twenty percent
            (20%) of Manager's costs.

                  7. Negotiating and executing contracts for the furnishing to
            the Property of all services and utilities, including electricity,
            gas, water, steam, telephone, cleaning, security, vermin
            extermination, elevator, escalator and boiler maintenance and any
            other utilities or services, including repairs and maintenance of
            the buildings, other improvements and common areas at the Property,
            or such of them as Manager deems advisable to assure that the
            Property shall be caused to be and remain in a good, sound and clean
            condition and properly operating. All fees, costs and expenses under
            the contracts shall be paid by Owner.

                  8. Sending rent bills to tenants of the Property and, subject
            to the terms of any loan or credit agreement entered into by Owner
            with a lender and affecting the Property, disbursing and paying from
            the rents, income and revenues of the Property, such amounts
            required to be disbursed or paid in connection with the repair,
            maintenance and operation of the Property and in the carrying out of
            Manager's duties. In the event that Manager shall determine that
            funds in the accounts are insufficient to make necessary
            disbursements or payments, Manager shall notify Owner promptly of
            the amount of such insufficiency. Promptly after (i) Owner receives
            such notice, or (ii) Owner independently determines that such funds
            are insufficient, Owner shall determine and notify Manager as to the
            order of priority in which disbursements and payments shall be made.
            Disbursements or payments shall include, but not be limited to, the
            following items:

                        a. all assessments and charges of every kind imposed by
                  any governmental authority having jurisdiction (including real
                  estate taxes, assessments, sewer rents and/or water charges)
                  and, interest and penalties thereon; provided, however, that
                  the interest or penalty payments shall be reimbursed by
                  Manager to Owner if imposed by reason of delay in payment
                  caused by Manager's gross negligence, willful misconduct, bad
                  faith or material misapplication of funds (to the extent such
                  material misapplication of funds is not covered by insurance)
                  (collectively, "Malfeasance");

                        b. debt service on any loans secured by the Property;

                        c. license fees, permit fees, insurance appraisal fees,
                  fines, penalties, legal fees, accounting fees incurred in the
                  auditing of tenants'

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                  books and records to establish and collect overage or
                  percentage rents, and all similar fees reasonably incurred in
                  connection with the ownership, management or operation of the
                  Property, provided, however, that any fines or penalties shall
                  be reimbursed to Owner by Manager if imposed by reason of
                  delay in payment caused by Manager's Malfeasance;

                        d. premiums on all policies of insurance;

                        e. salaries, wages and other related expenses, bonuses
                  and fringe benefits for on-site personnel, service contracts,
                  utilities, repairs, replacements, on-site administration
                  expenses and Manager's compensation;

                        f. the Management Fee and any other sums payable
                  hereunder to Manager;

                        g. contributions to merchants associations, if and as
                  required by any outstanding agreements; and advertisement and
                  public relations costs for promotional activities; and

                        h. any and all other expenses or costs that are
                  customarily disbursed by managing agents of properties
                  comparable to the Property or that are required in order for
                  Manager to perform its duties.

In no event shall Manager be required to pay any bills or charges from its own
funds, except as otherwise specifically provided herein.

                  9. [Intentionally Omitted]

                  10. Rendering such statements at such times and in such
            formats as Owner shall reasonably request and as shall be customary
            for properties comparable to the Property, including, without
            limitation, monthly cash flows, quarterly reports and operating
            statements and annual budgets as provided below.

                  11. Maintaining, at Manager's expense, insurance with
            reasonable deductibles, if any, for any and all claims or causes of
            action arising from bodily injury, disease or death of any of
            Manager's employees, agents, or representatives and for any and all
            claims or causes of action arising from Manager's negligence,
            infidelity or wrongful acts in connection with the performance of
            this Agreement, as well as employer's liability and worker's
            compensation for Managers employees and fidelity bonds for employees
            of Manager that handle funds and proceeds from the Property, in each
            case at customary levels of coverage.

                  12. Causing. at Owner's expense, all such acts and things to
            be done in or about the Property as shall be necessary to comply
            with all statutes, ordinances, laws, rules, regulations, orders and
            determinations, ordinary or extraordinary, foreseen or unforeseen of
            every kind or nature affecting or issued in connection with the
            Property by any governmental authority having jurisdiction thereof,
            as

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            well as with all such orders and requirements of the Board of Fire
            Underwriters, Fire Insurance Exchange, or any other body that may
            hereafter exercise similar functions (collectively, "Applicable
            Laws"). In the event that Manager's good faith estimate of the cost
            of complying with any Applicable Laws shall exceed $100,000 in
            connection with the Property, Manager shall not take any action to
            comply with Applicable Laws without first obtaining the consent of
            Owner. Notwithstanding the foregoing, however, Owner shall have no
            obligation to pay for the expenses incurred in connection with
            compliance with Applicable Laws to the extent such costs are
            incurred due to Managers Malfeasance or material breach of this
            Agreement. Manager shall have the right to contest such Applicable
            Laws, and pending the final determination of the contest, Manager
            may withhold compliance, provided that Manager shall receive Owner's
            prior consent to so withhold compliance. Manager agrees to contest
            any Applicable Law Owner shall request Manager to contest.

                  13. Filing applications, in Manager's name (but only if
            Manager so elects) or in the name of Owner, but in any event at
            Owner's expense. for the reduction of real estate tax assessments
            and/or water charges and sewer rents, and/or for the cancellation or
            reduction of any other taxes, assessments, duties. imposts or other
            obligations of any nature imposed by law; and instituting any and
            all legal actions or proceedings in connection therewith; filing,
            settling, trying or appealing of all such applications and/or
            proceedings, upon such terms and conditions as Manager deems
            appropriate, provided, however, that Manager shall receive the
            consent of Owner prior to the institution or setting of any legal
            action or proceeding.

                  14. Taking, at Owner's expense and with the prior consent of
            Owner, any appropriate steps to protest and/or litigate to final
            decision in any appropriate court or forum any violation, order,
            rule or regulation affecting the Property.

                  15. Engaging, at Owner's expense, counsel, approved by Owner,
            and paying counsel fees and court costs and disbursements in
            connection with any proceedings involving the Property.

                  16. Assisting Owner in obtaining financing for the Property
            and complying with all terms, conditions and obligations of any
            lease, mortgage or other agreement, on behalf of Owner and at
            Owner's expense, that shall relate to any matters in connection with
            the rental, operation or management of the Property, unless
            prevented or delayed by strikes, riot, civil commotion, war,
            inability to obtain materials because of governmental restrictions
            or acts of God or public enemy, or any other cause beyond Manager's
            control.

                  17. Performing administrative services required in connection
            with managing the Property, including, without limitation, the
            following:

                        a. administration of tenants' insurance and enforcement
                  of continuing coverage in accordance with the teens of the
                  leases.

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                        b. confirmation of lease commencement dates and
                  termination dates.

                        c. liaison with the tenants as Owner's representative.

                        d. supervision of tenant litigation in conjunction with
                  Owner's legal counsel.

                        e. obtaining sales volume reports from tenants and
                  calculating and collecting percentage rents as a result of
                  those reports.

                        f. providing necessary information to Owner for tax
                  reporting, in a format reasonably approved by Owner and upon
                  Owner's request, initiating together with Owner's counsel,
                  property tax appeals.

                        g. providing quarterly financial statements, in a format
                  reasonably approved by Owner, reflecting in reasonable detail
                  the operating income and expense of the Property.

                        h. alerting Owner if tenant sales volume reports appear
                  inaccurate and recommend audits.

                        i. reporting and making recommendations regarding
                  unusual tenant problems requiring Owner's approval.

                        j. obtaining contractors to maintain, operate and
                  provide security for the Property.

                        k. coordinating with any consultants retained by Owner
                  in connection with the Property.

                  18. Preventing the use of the Property for any purpose that
            would void any insurance policy covering the Property, or that would
            render any loss thereunder uncollectible, or that would be in
            violation of any governmental restriction, any tenant lease or any
            reciprocal easement agreement.

            B. Owner shall be responsible for, and shall indemnify Manager
against, all costs incurred in connection with the operation and management of
the Property, except to the extent such costs are incurred in connection with
Managers Malfeasance or material breach of this Agreement, and all past, present
and future liabilities of Owner, including, without limitation:

                  1. all outside professional fees, including attorneys,
            accountants and architects;

                  2. taxes;

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                  3. insurance (other than workers' compensation insurance for
            Manager's employees and as otherwise provided herein), including
            retiree health liability insurance and directors' and officers'
            liability insurance;

                  4. fees and expenses applicable to Owner;

                  5. costs that are, at the discretion of Owner, for services
            not included in this Management Agreement, including, without
            limitation, salaries and other expenses of employees (other than
            employees of Manager) performing services for Owner in connection
            with the operation and management of the Property.

                                   ARTICLE V

                                  Annual Budget

            A. On or before the beginning of each fiscal year of Alexander's
Inc., Manager shall prepare and submit to Owner a proposed budget (hereinafter
referred to as the "Proposed Budget") of the estimated operating and capital
expenses of the Property for the next fiscal year or such other operating period
as may be agreed to by the parties.

            B. Owner shall have the right to approve or disapprove the Proposed
Budget. The final budget for the fiscal year is referred to as the "Approved
Budget" in this Agreement. The Approved Budget shall be subject to quarterly
comparisons and revisions, which revisions the Manager and Owner mutually shall
agree to be appropriate. all such revisions as approved by Owner shall be
considered part of the "Approved Budget". Manager shall make expenditures
without the specific approval of Owner if:

                  1. The expenditure (or group of related expenditures) has been
            generally identified in an Approved Budget line item and exceeds the
            amount shown in respect thereof in such budget line item by no more
            than ten percent (10%).

                  2. The expenditure (or group of related expenditures) has not
            been generally identified in the Approved Budget but does not exceed
            $100,000.

                  3. The expenditure (or group of related expenditures) exceeds
            $100,000 and was either not anticipated or exceeded the Approved
            Budget by more than ten percent, but is not discretionary.

                  4. The expenditure is required by a condition or situation
            that in Manager's professional judgment constitutes an emergency. In
            any case where an emergency situation exists that is of serious
            financial or physical consequence, Manager may act in the best
            interest of Owner, but Manager shall attempt to notify Owner prior
            to making the expenditure, but in any event, Manager shall report
            verbally the making of the expenditure to Owner no later than 24
            hours after the occurrence of the emergency.

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                                   ARTICLE VI

                           Owner to Execute Documents

            Owner covenants and agrees that wherever in this Agreement it is
provided that Manager may take any action in the name of or on Owner's behalf,
Owner will promptly execute any documents that may be required by Manager for
the purposes of carrying out any of Manager's functions as same are set forth.

                                  ARTICLE VII

                            Assignment; Cancellation

            A. Neither Owner nor Manager shall assign this Agreement or any of
its rights hereunder without the consent of the other party; provided, however,
that Manager shall have the right to assign its rights and delegate its duties
under this Agreement to any Specified Vornado Affiliate (as defined herein)
without the consent of Owner, provided that, (a) in connection with any such
assignment, Vornado Realty Trust provides to Owner a guarantee, in form and
substance reasonably satisfactory to Owner, of the duties and obligations of the
Specified Vornado Affiliate under this Agreement and agrees, to the extent
necessary, to make available to the Specified Vornado Affiliate the resources of
Vornado Realty Trust for the purposes of carrying out such duties and
obligations, (b) notwithstanding any such assignment to a Specified Vornado
Affiliate, the indemnification of Owner by Manager set forth in Article X hereof
shall remain the obligation of Vornado Realty Trust, and (c) references to the
standard of care, customarily provided services and reporting standards
applicable to Manager in performing its duties under this Management Agreement
shall be of the same standard of care and reporting standards applicable to
Vornado Realty Trust in connection with property owned by Vornado Realty Trust.
For purposes of this Article VII, "Specified Vornado Affiliate" shall mean
Vornado Realty L.P. or Vornado Realty Trust or any entity which directly or
indirectly controls either of them, is directly or indirectly controlled by
either of them or is under direct or indirect common control with either of
them.

            B. In the event that there is a change of control of Vornado Realty
Trust or Manager after the date of this Agreement, Owner shall have the right to
terminate this Agreement if Owner shall determine that such change of control is
reasonably likely to have a material adverse effect on the ability of Manager to
perform its obligations under this Agreement.

            C. This Agreement shall be non-cancelable, except as permitted by
the terms of this Agreement.

                                  ARTICLE VIII

                               Breach; Termination

            A. If either party shall commit a material breach of this Agreement,
the other party shall serve written notice upon the allegedly breaching party,
and the notice shall set forth

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the details of such alleged breach. Owner covenants and agrees that Manager
shall not be deemed to have committed a material breach of this Agreement unless
Manager wilfully violates any provision hereof, is grossly negligent in the
observance or performance of any of its obligations hereunder, acts in bad faith
in connection with its duties under this Agreement, or materially misapplies any
funds received from the Property (to the extent not covered by insurance).

            B. Owner shall, within ten (10) days after its receipt of said
notice, cure such breach unless it disputes the claim as set forth in Paragraph
D of this Article VIII. If Owner does not cure within such ten-day period,
Manager shall have the right, but not the obligation, to cease providing
services hereunder until the breach shall be cured. In the event that Manager
shall cease providing services hereunder pursuant to this Paragraph, Owner shall
have the right to terminate this Agreement and replace Manager in which event
Manager promptly shall deliver to Owner all books and records with respect to
the Property of Owner that are in Manager's possession and otherwise comply with
paragraph H below, and upon its receipt of any outstanding payments due to it,
shall cooperate with the successor Manager to effect a smooth transition in the
management and operation of the Property.

            C. Manager shall, within thirty (30) days after its receipt of a
notice under Paragraph A of this Article VIII, cure such breach unless it
disputes the claim as set forth in Paragraph D of this Article VIII; or if said
breach cannot be cured within said thirty (30) day period, Manager shall within
said time period commence and thereafter diligently and continuously proceed
with all necessary acts to cure such breach, subject to the terms of any loan
documents and other material agreements affecting the Property. If Manager shall
fail within said time period to cure the said breach, Owner shall have the
right, by sending a second written notice to Manager, to terminate this
Agreement effective immediately or as of a particular date which shall be
specified in said second notice.

            D. If the party who receives the notice of breach shall, within five
(5) days after receipt of such notice, send the notifying party a written notice
disputing the claim of material breach and demanding arbitration thereof, then
the parties hereto hereby agree that the dispute shall be submitted promptly by
them to the American Arbitration Association for the City of New York for
determination in accordance with its rules, and such determination shall be
binding upon both parties. During the pendency of said arbitration, Manager
shall continue to perform all of its obligations as Manager under this
Agreement. If it is determined that the party did commit a breach, then the
breach shall be cured within ten (10) days after service of a copy of the award
or determination on the breaching party; and if not so cured, this Agreement
shall be terminated.

            E. If, at any time during the term of this Agreement, there shall be
filed against either of the parties hereto in any court, pursuant to any statute
either of the United States or any state, a petition in bankruptcy or insolvency
or for reorganization of or for the appointment of a receiver or trustee of all
or a portion of the property of either party, and such petition is not
discharged within thirty (30) days after the filing thereof, or if either party
makes an assignment for the benefit of creditors, or petitions for or enters
into an arrangement, or permits this Agreement to be taken under any writ of
execution or attachment, then in any of

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such events, the other party hereto shall have the right to terminate this
Agreement by giving written notice, by certified mail, effective as of a
particular date specified in said notice.

            F. Manager and Owner shall each have the further right to terminate
this Agreement or any portion or provision thereof or activity thereunder on not
less than thirty (30) days' prior written notice to the other party if Manager
or Owner shall determine in good faith that this Agreement shall or may deprive
Manager or Alexander's, Inc. of any benefits appurtenant to that Party's future
qualification as a REIT under all applicable laws, including, without
limitation, the Internal Revenue Code of 1986, as amended from time to time (the
"Code"), or continued benefits if that party is a REIT.

            G. Upon full or partial termination, or expiration of this
Agreement, all of the obligations of either party to the other shall terminate
immediately except (i) Manager shall comply with the applicable provisions of
Subsection H below, (ii) Owner shall pay to Manager all .Management Fees and
expenses earned and/or due hereunder to the date of termination or expiration
and (iii) as otherwise expressly stated herein. Upon any termination of any
portion, provision or activity of or under this Agreement, the provisions of the
preceding sentence shall apply in respect of the terminated portion, provision
or activity. Owner shall pay Manager any amount owed to Manager under this
Agreement within 30 days after any termination of this Agreement.

            H. Notwithstanding anything to the contrary contained elsewhere
herein, in the event that the Management and Development Agreement dated
February 6. 1995 between Alexander's Inc. and Vornado Realty Trust is terminated
for any reason, Owner shall have the option to terminate this Management
Agreement upon written notice to Manager given at least three months prior to
such termination.

            I. Upon the expiration or earlier termination or partial termination
of this Agreement with respect to any part of or the entire Property, Manager
shall:

                  1. Deliver to Owner, or such other person or persons
            designated by Owner, all books and records of the Property and all
            funds in its possession belonging to Owner or received by Manager
            pursuant to this .Agreement with respect to the Property, together
            with all leases and all other contracts related to the Property;
            provided, however, that Manager shall have the right to keep a copy
            of all such records: and

                  2. Assign, transfer or convey to Owner, or such other person
            or persons designated by Owner, all service contracts and personal
            property of Owner relating to or used in the operation or
            maintenance of the Property. Upon the expiration or termination of
            this Agreement. Manager shall render a full account to Owner and
            shall deliver to Owner a statement outlining in detail all
            management fees due to Manager hereunder with respect to the
            Property, shall cause the net amount of any funds held by Manager in
            connection with the Property to be delivered to Owner and shall
            cooperate with Owner in the transition by Owner to a replacement
            property manager, if applicable.

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Owner shall compensate Manager for all costs and expenses incurred by Manager in
good faith in connection with the transition of the management of the Property
from Manager to any new manager.

                                   ARTICLE IX

                                No Joint Venture

            It is the intent of this Agreement to constitute Manager as an
independent contractor and as agent of Owner under any contract entered into by
Manager on behalf of Owner in accordance with the terms of this Agreement, and
this Agreement shall be so construed and Manager agrees at all times to act in
conformity therewith. Nothing herein contained shall be deemed to have created,
or be construed as having created any joint venture or partnership relationship
between Owner and Manager. At all times during the performance of its duties and
obligations arising hereunder, Manager shall be acting as an independent
contractor.

                                   ARTICLE X

                                    Indemnity

            A. Owner shall, to the fullest extent permitted by applicable law,
indemnify, defend and hold harmless Manager, its officers, directors, trustees.
partners, agents, employees and representatives against any losses, claims,
damages or liabilities to which such person may become subject in connection
with any matter arising out of or in connection with this Agreement, except for
any loss, claim, damage or liability caused by Manager's Malfeasance. If Manager
becomes involved in any capacity in any action, proceeding or investigation in
connection with any matter arising out of or in connection with this Agreement,
Owner shall reimburse Manager for Manager's legal and other expenses (including
the cost of any investigation and preparation) as they are incurred in
connection therewith; provided, however, that Manager shall promptly repay to
Owner the amount of any such reimbursed expenses paid to it to the extent that
it shall ultimately be determined that Manager, its officers, directors,
trustees or agents were not entitled to be indemnified by Owner in connector
with such action. proceeding or investigation.

            B. Manager shall indemnify, defend and hold harmless Owner and each
of their respective officers, directors, trustees, partners, representatives,
employees and agents from and against any and all claims, losses, damages or
liabilities, to which such person may become subject and arising out of
Manager's Malfeasance or the Malfeasance of any of its employees,
representatives or agents in performing its or their duties under this
Agreement, except to the extent caused by the Malfeasance of Owner or any of
their respective officers, directors, trustees, shareholders, partners,
representatives, employees or agents. If Owner becomes involved in any capacity
in any action, proceeding or investigation in connection with any matter arising
out of or in connection with this indemnity, Manager shall reimburse Owner for
Owner's legal and other expenses (including the cost of any investigation and
preparation) as they are incurred in connection therewith; Provided, however,
that Owner shall promptly repay to Manager the amount of any such reimbursed
expenses paid to it to the extent that it shall ultimately be determined that
Owner, its officers, directors, trustees or agents were not entitled to be

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indemnified by Manager in connection with such action, proceeding or
investigation. Notwithstanding anything contained herein, Manager's liability
hereunder shall be limited (except to the extent covered by insurance) to the
aggregate amount of the Management Fee received by Manager as of the date such
liability is determined.

            C. The terms of this Article X shall survive the expiration or
termination of this Agreement.

                                   ARTICLE XI

                                     Notices

            Any and all notices, consents or directives by either party intended
for the other shall be in writing sent by hand delivery or reputable overnight
courier service to the respective addresses first herein set forth in this
Agreement, unless either party shall have designated different addresses. by
serving written notices of change of addresses on the other party by registered
or certified mail, return receipt requested.

                                  ARTICLE XII

                                  Miscellaneous

            A. This Agreement cannot be changed or modified, varied or altered
except by an agreement, in writing, executed by each of the parties hereto. This
Agreement constitutes all of the understandings and agreements of whatsoever
kind or nature existing between the parties in connection with the relationship
created herein.

            B. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York.

            C. Neither Owner nor Manager shall make (and each hereby waives) any
claim against the other party's directors personally or against the other
party's trustees, beneficiaries or shareholders personally. Manager shall (and
is hereby authorized to) insert in all leases, documents and agreements executed
by it on behalf of Owner, a provision that Manager's directors, trustees,
beneficiaries or shareholders shall not be personally liable thereunder.

            D. Owner shall have the right to collaterally assign this Agreement
to a lender providing financing to Owner, and Manager agrees to execute and
deliver a recognition agreement, in a commercially reasonable form, providing
that (a) such lender may assume Owner's interest in this Agreement without
obligation for payment of any fees accrued and payable to Manager for a time
prior to such assumption or with respect to performance of any obligation
relating to a time prior to such assumption, (b) Manager will perform the
services set forth herein for so long as such lender continues to perform the
obligations of Owner hereunder unless Manager elects, at any time, to give such
lender a fifteen (15) day termination notice, in which event Manager's
obligations shall terminate as of the date stated in such termination notice,
and (c) any termination hereof by the lender other than in accordance with the
terms of this Agreement (as opposed to in accordance with the recognition
agreement) shall not relieve Owner of its obligations hereunder. In no event
shall an assumption by the lender under such a

                                       13
<PAGE>
recognition agreement release Owner from its obligation hereunder with respect
to accrued fees or otherwise.

            E. Any approval or consent required by or requested of Owner
pursuant to the terms of this Agreement may be withheld in the sole and absolute
discretion of Owner, unless otherwise expressly provided.

            F. Manager and Owner hereby expressly acknowledge and agree that any
third party engaged in accordance with the terms of this Agreement to perform
any of the services contemplated hereunder shall be at Owner's expense.

            G. Owner and Manager acknowledge that nothing contained in this
agreement shall restrict or otherwise affect the rights of Vornado Realty Trust
or any affiliate thereto in connection with any loan facility provided by
Vornado Realty Trust or such affiliate to .Alexander's, Inc. and/or its
subsidiary.

            H. Anything contained in this Agreement to the contrary
notwithstanding, Manager's agreement to undertake the obligations set forth in
this Agreement shall not constitute or be deemed to constitute an express or
implied warranty concerning the general affairs, financial position,
stockholders' equity, financial results of operations or prospects of Owner.

                                  ARTICLE XIII

                              Declaration of Trust

            A. Manager shall use every reasonable means to assure that all
persons having dealings with Manager shall be informed that no trustee,
shareholder, officer or agent of Manager shall be held to any personal
liability, nor shall resort be had to their private property for the
satisfaction of any obligation or claim or otherwise in connection with the
affairs of Owner, but the trust estate only shall be liable. Manager recognizes
and agrees that every agreement or other written instrument entered into by
Manager on behalf of Owner shall contain a provision stating the above
limitation.

            B. Manager represents, warrants and agrees that neither it nor any
affiliated or related person or entity (including any person or entity owning
any interest in Manager) is now, or shall become during the term of this
Agreement, a borrower of any funds advanced by Alexander's, and Manager shall
advise Alexander's promptly, in writing, should such representation and warranty
become untrue. Manager shall, from time to time, furnish such information as may
reasonably be requested by Owner in order to facilitate Alexander's
qualification as a REIT under the Code.

                                  ARTICLE XIV

                        Continued Qualification as a REIT

            A. Manager shall make reasonable efforts not to enter into any
agreement (including, without being limited to, any agreement for the furnishing
of non-customary services), without the consent of Alexander's, with any tenant
or other occupant of the Property,

                                       14
<PAGE>
that would result in (A) the disqualification of Alexander's as a REIT entitled
to the benefits of Section 856 et seq., of the Code, (B) the imposition of any
penalty or similar tax on Alexander's (including, without being limited to, the
tax imposed on the failure to meet certain income requirements under Section
857(b)(5) of the Code and the tax imposed on income from prohibited transactions
under Section 857(b)(6) of the Code) or (C) any part of the rental or other
consideration paid thereunder by such tenant or occupant to Alexander's, or to
Manager on behalf of Alexander's, being held not to constitute either "rents
from real property" or "interest on obligations secured by mortgages on real
property or on interests in real property" or "interest on obligations secured
by mortgages on real property or on interest in real property" or other income
described in Sections 856(c)(2) and (c)(3) of the Code.

            B. Manager shall cause Alexander's Inc. to make reasonable efforts
to assure, by prior review of agreements to be entered into by Manager, that no
such agreement contains provisions that would result in the disqualification of
Alexander's as a REIT entitled to the benefits of Section 856 et seq. of the
Code, receipt by the Owner of non-qualifying income, or imposition of a penalty
or similar tax (including, without being limited to, the tax imposed on the
failure to meet certain income requirements under Section 857(b)(5) of the Code
and tax imposed on income from prohibited transactions under Section 857(b)(6)
of the Code), and specifically agrees that Manager shall be entitled to rely
upon the advice of Alexander's designated counsel as to any such matter;
provided, however, that, without regard to whether such review has been
performed or advice rendered, if any document or other written undertaking
entered into or made by or on behalf of Owner or any constituent entity of Owner
shall, in the reasonable opinion of counsel to Alexander's, contain any
provision that would result in a significant risk of the disqualification of
Alexander's as a REIT, receipt by Alexander's of non-qualifying income,
imposition on .Alexander's of any penalty or similar tax (including, without
being limited to, the tax imposed on the failure to meet certain requirements
under Section 857(b)(5) of the Code and the tax imposed on income from
prohibited transactions under Section 857(b)(6) of the Code), all as provided
for in said Section 856 et seq., then:

            (i) such provision shall promptly be amended or modified, to the
      reasonable satisfaction of counsel to Alexander's so as to remove the risk
      of such result, such amendment or modification to be retroactive to the
      date of such document or other undertaking, or to a date approved by
      counsel to Alexander's; or

            (ii) if a satisfactory amendment or modification cannot be agreed
      upon as set forth in clause (i) above, any such document or other
      undertaking shall be terminated by Alexander's, such termination to be
      retroactive to the date of such document or other undertaking, or to a
      date approved by counsel to Alexander's, and effective as to all terms and
      provisions of such document or other undertaking, except such provisions
      thereof as call for the making of any distribution or the payment of any
      compensation to any third party, for the purpose of which provisions, the
      termination date shall be deemed to be without retroactive effect.

                                       15
<PAGE>
            C. Manager agrees that it shall cooperate with Owner in
accomplishing a satisfactory amendment or modification of any such document or
other undertaking, or the termination thereof, and shall, on request, execute
and deliver any and all agreements and other documents reasonably required to
effect such amendment or modification, or such termination. Manager shall submit
any agreement proposed to be entered into by or on behalf of Owner to Owner's
designated counsel for review a reasonable period of time prior to the proposed
execution of such agreement.

                                       16
<PAGE>
            IN WITNESS WHEREOF, the parties hereto have hereunto executed this
Agreement as of the 31 day of May, 2001.

                                     OWNER:

                                     ALEXANDER'S KINGS PLAZA, LLC

                                     By:   /s/ Joseph Macnow
                                        ----------------------------------------
                                        Name:  Joseph Macnow
                                        Title: Executive Vice President

                                     MANAGER:

                                     VORNADO MANAGEMENT CORP.

                                     By:   /s/ Joseph Macnow
                                        ----------------------------------------
                                        Name:  Joseph Macnow
                                        Title: Executive Vice President

                                       17
<PAGE>
                                    EXHIBIT A

                             "KINGS PLAZA PROPERTY"

Address:
               2567/2569 Flatbush Avenue, Brooklyn, New York

               (includes store and parking garage)
               Tax Map Designation:
               Block: 8470  Lot: p/o lot 1, 50 and 55
               County: New York
               County: Kings
               State:  New York

                                       A-1<PAGE>
                                                               Exhibit 10(v)B(2)

                            FIRST AMENDMENT OF LEASE

         THIS FIRST AMENDMENT OF LEASE, dated as of the 19 day of April, 2002,
by and between SEVEN THIRTY ONE LIMITED PARTNERSHIP ("731"), a New York limited
partnership, having an address c/o Vornado Realty Trust, 210 Route 4 East,
Paramus, New Jersey 07652, and BLOOMBERG L.P. ("BLP"), a Delaware limited
partnership, having an address at 499 Park Avenue, New York, New York 10022.

                                  WITNESSETH :

         WHEREAS, pursuant to an Agreement of Lease (the "Original Lease"),
dated as of April 30, 2001, between 731, as landlord, and BLP, as tenant, 731
leased and demised to BLP, and BLP did hire and take from 731, certain premises
in a new building that 731 intends to construct at the real property bounded by
Lexington Avenue, East 58th Street, East 59th Street and Third Avenue, New York,
New York, on the terms and subject to the conditions set forth therein; and

         WHEREAS, pursuant to a letter agreement, dated December 20, 2001,
between 731 and BLP, the parties agreed to amend Section 22.4(B)(2) of the
Original Lease, on the terms set forth therein; and

         WHEREAS, pursuant to a letter agreement, dated January 30, 2002,
between 731 and BLP, the parties agreed to further amend Section 22.4(B)(2) of
the Original Lease, on the terms set forth therein (the Original Lease, as so
amended by the aforesaid letter agreements, being referred to herein as the
"Lease"); and

         WHEREAS, 731 and BLP desire to amend the Lease to (i) delete from the
premises initially demised thereby the entire rentable area on the twentieth
(20th) and the twenty- first (21st) floors of the Lexington Avenue Building,
(ii) add to the premises initially demised thereby the entire rentable area on
the third (3rd) floor of the Third Avenue Building, and (iii) otherwise modify
the Lease, in each case on the terms and subject to the conditions set forth
herein.

         NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the mutual receipt and legal sufficiency of which the
parties hereto hereby acknowledge, 731 and BLP hereby agree as follows:

         1. Defined Terms. Capitalized terms used and not otherwise defined
herein shall have the respective meanings ascribed thereto in the Lease.

         2. Lease Modifications. Landlord and Tenant hereby amend the Lease as
follows:

         (1)      The Base Premises shall include (in addition to the portions
                  of the Building that are included therein as set forth in the
                  Lease) the third (3rd) floor of the Third Avenue Building,
                  other than the portion thereof that is

                                        1
<PAGE>
                  used for Remote Building Systems or for Shared Building
                  Systems (such area on the third (3rd) floor of the Third
                  Avenue Building that is included in the Base Premises being
                  referred to herein as the "New Space").

         (2)      The New Space shall constitute a Deliverable Unit for purposes
                  of the Lease.

         (3)      The First Delivery Component shall include (in addition to the
                  portions of the Building that are included therein as set
                  forth in the Lease) the New Space.

         (4)      The reference to "the twenty-first (21st) floor of the
                  Lexington Avenue Building" as set forth in definition of the
                  term "Highest Basic Floor" is hereby deleted, and the clause
                  "the nineteenth (19th) floor of the Lexington Avenue Building"
                  is hereby substituted therefor.

         (5)      The New Space shall constitute a Major Sublease Unit for
                  purposes of the Lease.

         (6)      Clauses (xviii) and (xix) are hereby deleted from the
                  definition of the term "Major Sublease Unit" as set forth in
                  the Lease.

         (7)      The clause "twenty-second (22nd) floor of the Building" in
                  clause (xxi) of the definition of the term "Major Sublease
                  Unit" is hereby deleted, and the clause "twentieth (20th)
                  floor of the Lexington Avenue Building" is hereby substituted
                  therefor.

         (8)      The definition for the term "Post-Delivery Work" is hereby
                  deleted, and the following clause is hereby substituted
                  therefor:

                  "Post- Delivery Work" shall mean, collectively, (a) the Timed
                  Post- Delivery Work Components, and (b) any other Work
                  Component that this Lease (including, without limitation, the
                  Work Exhibit) (I) requires Landlord to perform after the
                  Commencement Date for the applicable Deliverable Unit, or (II)
                  does not require Landlord to perform on or prior to the
                  Commencement Date for the applicable Deliverable Unit.

         (9)      The following clause is hereby added to the list of defined
                  terms in the Lease:

                  "Fourth Price Space" shall mean the portion of the Initial
                  Premises that is located on the third (3rd) floor of the Third
                  Avenue Building.

                                        2
<PAGE>
         (10)     The reference in the definition of the term "Third Price
                  Space" to the twentieth (20th) floor and the twenty-first
                  (21st) floor of the Lexington Avenue Building is hereby
                  deleted.

         (11)     The Fixed Rent for the 1st Rental Period shall include (in
                  addition to the items set forth in the Lease) an amount equal
                  to the product obtained by multiplying (I) Fifty-Four Dollars
                  ($54.0000), by (II) the number of square feet of Rentable Area
                  in the Fourth Price Space.

         (12)     The Fixed Rent for the 2nd Rental Period shall include (in
                  addition to the items set forth in the Lease) an amount equal
                  to the product obtained by multiplying (I) Fifty-Nine and
                  9,400/10,000 Dollars ($59.9400), by (II) the number of square
                  feet of Rentable Area in the Fourth Price Space.

         (13)     The Fixed Rent for the 3rd Rental Period shall include (in
                  addition to the items set forth in the Lease) an amount equal
                  to the product obtained by multiplying (I) Sixty-Six and
                  5,334/10,000 Dollars ($66.5334), by (II) the number of square
                  feet of Rentable Area in the Fourth Price Space.

         (14)     The Fixed Rent for the 4th Rental Period shall include (in
                  addition to the items set forth in the Lease) an amount equal
                  to the product obtained by multiplying (I) Seventy-Three and
                  8,521/10,000 Dollars ($73.8521), by (II) the number of square
                  feet of Rentable Area in the Fourth Price Space.

         (15)     The Fixed Rent for the 5th Rental Period shall include (in
                  addition to the items set forth in the Lease) an amount equal
                  to the product obtained by multiplying (I) Eighty-One and
                  9,758/10,000 Dollars ($81.9758), by (II) the number of square
                  feet of Rentable Area in the Fourth Price Space.

         (16)     The Fixed Rent for the 6th Rental Period shall include (in
                  addition to the items set forth in the Lease) an amount equal
                  to the product obtained by multiplying (I) Ninety and
                  9,931/10,000 Dollars ($90.9931), by (II) the number of square
                  feet of Rentable Area in the Fourth Price Space.

         (17)     The Fixed Rent for the 7th Rental Period shall include (in
                  addition to the items set forth in the Lease) an amount equal
                  to the product obtained by multiplying (I) One Hundred One and
                  24/10,000 Dollars ($101.0024), by (II) the number of square
                  feet of Rentable Area in the Fourth Price Space.

         (18)     The definition of the term "Base Rental Amount" as set forth
                  in Section 38.1(E) of the Lease is hereby amended by adding
                  the following clause (5) thereto:

                  (5)      in connection with the determination of the Rental
                           Value of any portion of the Renewal Premises that
                           constitutes Fourth Price

                                        3
<PAGE>
                           Space for the Renewal Term, the product obtained by
                           multiplying (x) the number of square feet of Rentable
                           Area in such portion of the Renewal Premises, by (y)
                           (a) One Hundred One and 24/10,000 Dollars ($101.0024)
                           for the period from the first day of the Renewal Term
                           to the day immediately preceding the twenty-eighth
                           (28th) anniversary of the Last Commencement Date, (b)
                           One Hundred Twelve and 1,126/10,000 Dollars
                           ($112.1126) for the period from the twenty-eighth
                           (28th) anniversary of the Last Commencement Date to
                           the day immediately preceding the thirty- second
                           (32nd) anniversary of the Last Commencement Date, and
                           (c) One Hundred Twenty-Four and 4,450/10,000 Dollars
                           ($124.4450) for the period from the thirty-second
                           (32nd) anniversary of the Last Commencement Date to
                           the last day of the Renewal Term.

         (19)     Clause (i) of the definition of the term "Rent Per Square
                  Foot" in Section 12.7(B)(2) of the Lease is hereby deleted,
                  and the following clause is hereby substituted therefor:

                  (i)      with respect to the First Price Space, the Second
                           Price Space, the Third Price Space or the Fourth
                           Price Space, the sum of (I) the amount applicable at
                           such time, as set forth on Exhibit Definitions-A
                           attached hereto, and (II) the Escalation Rent Per
                           Square Foot.

         (20)     Exhibit Definitions-A to the Lease is hereby deleted, and the
                  schedule set forth in Exhibit "A" attached hereto and made a
                  part hereof is hereby substituted therefor.

         (21)     Section 2.1 of the Lease is hereby modified by deleting the
                  last sentence thereof. Landlord shall not have the right to
                  claim that the use of the Premises by a Permitted Occupant at
                  an occupancy density that conforms with the parameters set
                  forth on Exhibit "B" attached hereto and made a part hereof
                  is, in and of itself, not in conformity with the Building
                  Standard.

         (22)     The clause in the first sentence of Section 2.3(C) of the
                  Lease "the twenty- second (22nd) floor of the Building" is
                  hereby deleted, and the clause "the twentieth (20th) floor of
                  the Building" is hereby substituted therefor.

         (23)     Section 2.5(A)(e) of the Lease is hereby modified to delete
                  therefrom the phrase "Post-Delivery Date" and to substitute
                  therefor the phrase "Post- Delivery Work Date."

                                        4
<PAGE>
         (24)     The references in the definition of the term "Tower Premises"
                  to the twentieth (20th) floor and the twenty-first (21st)
                  floor of the Lexington Avenue Building are hereby deleted.

         (25)     The Third Floor Deck shall include the slab and decking
                  constituting the floor of the portion of the Premises located
                  on the third (3rd) floor of the Lexington Avenue Building and
                  the third (3rd) floor of the Third Avenue Building.

         (26)     Section 3.10 of the Lease is hereby modified by deleting the
                  last sentence thereof and substituting the following sentence
                  therefor:

                  This Section 3.10 shall not apply during any period after the
                  Last Commencement Date that (i) the Rentable Area on the third
                  (3rd) floor of the Lexington Avenue Building is not demised
                  hereby (with respect to the portion of the Third Floor Deck in
                  the Lexington Avenue Building), and (ii) the Rentable Area on
                  the third (3rd) floor of the Third Avenue Building is not
                  demised hereby (with respect to the portion of the Third Floor
                  Deck in the Third Avenue Building).

         (27)     Notwithstanding Section 22.1(E)(1) of the Lease, Landlord
                  shall have the right to cause the Commencement Date for the
                  New Space to occur later than the Commencement Date for the
                  Deliverable Unit constituting the fourth (4th) floor in the
                  Third Avenue Building (with the understanding, however, that
                  the Commencement Date for the New Space shall not occur later
                  than the Commencement Date for the Deliverable Unit
                  constituting the fifth (5th) floor of the Third Avenue
                  Building).

         (28)     Section 22.1(E)(11) of the Lease is hereby modified by
                  deleting the reference therein to "the Lexington Avenue
                  Building" and substituting therefor a reference to "the
                  Lexington Avenue Building or the Third Avenue Building".

         (29)     Section 22.3(F)(4) of the Lease is hereby modified to delete
                  therefrom the phrase "during the calendar month of September,
                  2004" and to substitute therefor the phrase "on or after
                  September 1, 2004."

         (30)     Section 22.7(A) of the Lease is hereby modified to delete
                  therefrom the definition of the term "Timed Post-Delivery Work
                  Components", and to substitute therefor the following clause:

                  As used herein, the term "Timed Post-Delivery Work Components"
                  shall mean, collectively, (I) the Work Components listed in
                  the Technical Requirements that comprise part of the Work
                  Exhibit that, according to the corresponding entry in the
                  column entitled "Delivery of Landlord's

                                        5
<PAGE>
                  Work," are contemplated to be performed within a particular
                  period of time after the First Commencement Date or the
                  Commencement Date for a particular Deliverable Unit, and (II)
                  those Work Components described in the Lease that are
                  contemplated to be performed within a particular period of
                  time after the First Commencement Date or the Commencement
                  Date for a particular Deliverable Unit.

         (31)     The clause in the second sentence of Section 22.14(D) of the
                  Lease "space on the ground level or the second (2nd) floor of
                  the Third Avenue Building" is hereby deleted, and the clause
                  "space on the ground level of the Third Avenue Building" is
                  hereby substituted therefor.

         (32)     Section 25.2 of the Lease is hereby modified by adding the
                  following sentence:

                  A Construction Notice shall be deemed to be given properly by
                  Tenant if such notice is given, in the manner set forth in
                  this Section 25.2, by Keith Barr, Stephen Karafiol, or Thomas
                  Philip, or such other Person that Tenant designates from time
                  to time.

         (33)     If Landlord exercises Landlord's right to consummate (x) a
                  Sublease Recapture pursuant to Section 12.16(A) of the Lease,
                  or (y) a Subleasehold Assignment Recapture pursuant to Section
                  12.16(B) of the Lease, then Landlord shall have the right to
                  exercise Landlord's rights to use the Recovered Elevators
                  under Section 27.1(B) of the Lease only for the term of the
                  applicable sublease (rather than for the portion of the Term
                  that remains from and after the date that Landlord consummates
                  such Sublease Recapture of such Subleasehold Assignment
                  Recapture).

         (34)     The reference to "the twenty-second (22nd) floor of the
                  Lexington Avenue Building" in clause (i) of the definition of
                  the term "Upper Option Space" in Section 36.1 of the Lease is
                  hereby deleted, and a reference to "the twentieth (20th) floor
                  of the Lexington Avenue Building" is hereby substituted
                  therefor.

         (35)     Each reference to "the second (2nd) floor of the Building" in
                  the definition of the term "Lower Option Space" in Section
                  36.1 of the Lease is hereby deleted, and a reference to "the
                  second (2nd) floor of the Lexington Avenue Building" is hereby
                  substituted therefor.

         (36)     The reference in the definition of the term "Shortage Floor"
                  in Section 36.11(A) of the Lease to "the twenty-second (22nd)
                  floor of the Lexington Avenue Building" is hereby deleted, and
                  a reference to "the twentieth (20th) floor of the Lexington
                  Avenue Building" is hereby substituted therefor.

                                        6
<PAGE>
         (37)     The reference in Section 36.11(A) of the Lease to Exhibit
                  Definitions-E is hereby deleted, and a reference to Exhibit
                  Definitions-A is hereby substituted therefor.

         (38)     The first sentence of Section 36.11(B) of the Lease is hereby
                  deleted, and the following sentence is hereby substituted
                  therefor:

                  Subject to the terms of this Section 36.11(B), Tenant shall
                  have the right to include in the Tower Premises either (x) the
                  entire Rentable Area on the twentieth (20th) floor of the
                  Lexington Avenue Building, (y) the entire Rentable Area on the
                  twentieth (20th) floor of the Lexington Avenue Building and on
                  the twenty-first (21st) floor of the Lexington Avenue
                  Building, or (z) the entire Rentable Area on the twentieth
                  (20th) floor of the Lexington Avenue Building, the
                  twenty-first (21st) floor of the Lexington Avenue Building,
                  and the twenty-second (22nd) floor of the Lexington Avenue
                  Building, by giving notice thereof (the "Early Option Notice")
                  to Landlord on or prior to June 30, 2002 (Tenant's aforesaid
                  option to lease such space in the Lexington Avenue Building as
                  provided in this Section 36.11(B) being referred to herein as
                  the "Early Option").

         (39)     The fourth sentence of Section 36.11(B) of the Lease is hereby
                  deleted, and the following sentence is hereby substituted
                  therefor:

                  If Tenant exercises the Shortage Option prior to the date that
                  Tenant exercises the Early Option, then the aforesaid space
                  with respect to which Tenant has the right to exercise the
                  Early Option shall be either (x) the entire Rentable Area on
                  the twenty-first (21st) floor of the Lexington Avenue
                  Building, (y) the entire Rentable Area on the twenty-first
                  (21st) floor of the Lexington Avenue Building and on the
                  twenty-second (22nd) floor of the Lexington Avenue Building,
                  or (z) the entire Rentable Area on the twenty-first (21st)
                  floor of the Lexington Avenue Building, on the twenty-second
                  (22nd) floor of the Lexington Avenue Building, and on the
                  twenty-third (23rd) floor of the Lexington Avenue Building.

         (40)     The reference to Exhibit Definitions-E in Section 36.11(B) of
                  the Lease is hereby deleted, and a reference to Exhibit
                  Definitions-A is hereby substituted therefor.

         (41)     The definition of the term "High Rise Portion" as set forth in
                  Section 36.11(C) of the Lease shall be the portion of the
                  Building at and above the twentieth (20th) floor of the
                  Building that is served by the High Rise Office Elevators.

         (42)     Clause (y) in the first sentence of Section 37.1(B) of the
                  Lease is hereby deleted, and the following clause is hereby
                  substituted therefor:

                                        7
<PAGE>
                  (y) (I) the entire portion of the Lower Level Space that is
                  located on Lower Level 2 of the Building, (II) the entire
                  portion of the Basic Premises that is then located on the
                  third (3rd) floor of the Lexington Avenue Building (if any),
                  (III) the entire portion of the Basic Premises that is then
                  located on the third (3rd) floor of the Third Avenue Building
                  (if any), and (IV) additional portions of the Basic Premises
                  above the third (3rd) floor of the Building that (X)
                  constitute all of the Rentable Area on particular floors of
                  the Building, and (Y) are vertically contiguous to portions of
                  the Basic Premises for which Tenant exercises the Renewal
                  Option, so that the portion of the Premises with respect to
                  which Tenant exercises the Renewal Option comprises at least
                  Three Hundred Fifty Thousand (350,000) square feet of Rentable
                  Area.

         (43)     Landlord and Tenant acknowledge that for purposes of
                  determining the Fair Market Rent of the New Space, Landlord
                  and Tenant shall assume that such space is being valued as
                  office space (it being understood that the Fair Market Rent
                  for the New Space shall be otherwise determined in accordance
                  with the terms of Section 38.2 of the Lease).

         (44)     The references to the twentieth (20th) floor of the Building
                  and the twenty-first (21st) floor of the Building in Item 8
                  of the Architectural Requirements that comprise part of the
                  Work Exhibit are hereby deleted.

         (45)     Item 9 of the Architectural Requirements that comprise part of
                  the Work Exhibit is hereby amended to provide that the High
                  Rise Office Elevators shall serve (in addition to the floors
                  set forth therein) the nineteenth (19th) and the twentieth
                  (20th) floors of the Building.

         (46)     The reference in Item 24 of the Architectural Requirements
                  that comprise part of the Work Exhibit to "the 22nd floor of
                  the Building" is hereby deleted, and a reference to "the 20th
                  floor of the Building" is hereby substituted therefor.

         (47)     Item 25 of such Architectural Requirements is hereby deleted.
                  Landlord and Tenant acknowledge that (i) the emergency egress
                  capacity of the portion of the Initial Premises that is
                  located at and below the nineteenth (19th) floor of the
                  Building (and the twentieth (20th) floor of the Building, if
                  Tenant exercises the Shortage Option) shall be sufficient to
                  support the occupancy density described in Exhibit "B"
                  attached hereto, (ii) the additional work that is necessary to
                  achieve such emergency egress capacity (over the work that is
                  necessary to achieve emergency egress capacity of one (1)
                  person for each eighty (80) square feet of Usable Area) shall
                  be a Tenant Work Component (such additional work being
                  collectively referred to herein as the "Egress Capacity
                  Work"), (iii) the Fixed Rent shall be increased to reflect the
                  additional space used by the

                                        8
<PAGE>
                  emergency egress staircase on the second (2nd) floor of the
                  Lexington Avenue Building (at the rate of One Hundred
                  Twenty-Five Dollars ($125) per square foot of Usable Area,
                  increasing by eleven percent (11%) on each fourth (4th)
                  anniversary of the Last Commencement Date), and (iv) the Fixed
                  Rent shall be increased to reflect the additional space used
                  by the emergency egress staircase on the ground floor of the
                  Building (at the rate of Three Hundred Dollars ($300) per
                  square foot of Usable Area, increasing by eleven percent (11%)
                  on each fourth (4th) anniversary of the Last Commencement
                  Date). Landlord shall have the right to require Tenant to pay
                  the cost of the Egress Capacity Work (as otherwise provided in
                  Section 22.2 of the Lease) only if (i) Landlord gives Tenant a
                  notice (or notices) describing in reasonable detail the
                  components of the Work that constitute the Egress Capacity
                  Work, and (ii) Tenant fails to give to Landlord, within ten
                  (10) days after the date that Landlord gives to Tenant the
                  aforesaid notice (or each of the aforesaid notices, as the
                  case may be), a notice to the effect that Tenant revokes
                  Tenant's election to require Landlord to perform the Egress
                  Capacity Work (or the applicable element thereof). If Tenant
                  gives such notice revoking Tenant's election to require
                  Landlord to perform the Egress Capacity Work (or the
                  applicable element thereof), then (x) Landlord shall have no
                  obligation to perform the Egress Capacity Work (or the
                  applicable element thereof), and (y) Tenant shall pay to
                  Landlord an amount equal to the reasonable out-of- pocket
                  design costs that Landlord incurs in redesigning the Work to
                  delete the Egress Capacity Work (or the applicable portion
                  thereof), within thirty (30) days after Landlord's request
                  therefor and Landlord's submission to Tenant of reasonable
                  supporting documentation therefor. Landlord shall use
                  Landlord's reasonable efforts to minimize the scope and the
                  cost to Tenant of the Egress Capacity Work (to the extent that
                  Tenant does not revoke Tenant's election to require Landlord
                  to perform the Egress Capacity Work (or the applicable
                  elements thereof) as provided in this clause (47)). Landlord
                  and Tenant shall each have the right to submit to an Expedited
                  Arbitration Proceeding any dispute between the parties
                  regarding the scope of the Egress Capacity Work or the costs
                  thereof to be paid by Tenant to Landlord under the Lease, as
                  amended hereby.

         (48)     The reference in Item 26 of such Architectural Requirements to
                  "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (49)     The reference in Item 29 of such Architectural Requirements to
                  "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

                                        9
<PAGE>
         (50)     Each reference in Item 30 of such Architectural Requirements
                  to "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (51)     The reference in Item 35 of such Architectural Requirements to
                  "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (52)     The reference in Item 36 of such Architectural Requirements to
                  "the twenty-first (21st) floor of the Building" is hereby
                  deleted, and a reference to "the nineteenth (19th) floor of
                  the Building" is hereby substituted therefor.

         (53)     The reference in Item 36 of such Architectural Requirements to
                  "the twenty-second (22nd) floor of the Building" is hereby
                  deleted, and a reference to "the twentieth (20th) floor of the
                  Building" is hereby substituted therefor.

         (54)     Each reference in Item 40 of such Architectural Requirements
                  to "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (55)     The reference in Item 41 of such Architectural Requirements to
                  "the twenty-first (21st) floor of the Building" is hereby
                  deleted, and a reference to "the nineteenth (19th) floor of
                  the Building" is hereby substituted therefor.

         (56)     The reference in Item 41 of such Architectural Requirements to
                  "the twenty-second (22nd) floor of the Building" is hereby
                  deleted, and a reference to "the twentieth (20th) floor of the
                  Building" is hereby substituted therefor.

         (57)     Each reference in Item 42 of such Architectural Requirements
                  to "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (58)     Each reference in Item 43 of such Architectural Requirements
                  to "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (59)     The reference in Item 44 of such Architectural Requirements to
                  "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

                                       10
<PAGE>
         (60)     The reference in Item 45 of such Architectural Requirements to
                  "the twenty-first (21st) floor of the Building" is hereby
                  deleted, and a reference to "the nineteenth (19th) floor of
                  the Building" is hereby substituted therefor.

         (61)     The reference in Item 45 of such Architectural Requirements to
                  "the twenty-second (22nd) floor of the Building" is hereby
                  deleted, and a reference to "the twentieth (20th) floor of the
                  Building" is hereby substituted therefor.

         (62)     The reference in Item 50 of such Architectural Requirements to
                  "the twenty-first (21st) floor of the Building" is hereby
                  deleted, and a reference to "the nineteenth (19th) floor of
                  the Building" is hereby substituted therefor.

         (63)     The reference in Item 50 of such Architectural Requirements to
                  "the twenty-second (22nd) floor of the Building" is hereby
                  deleted, and a reference to "the twentieth (20th) floor of the
                  Building" is hereby substituted therefor.

         (64)     The reference in Item 51 of such Architectural Requirements to
                  "the twenty-first (21st) floor of the Building" is hereby
                  deleted, and a reference to "the nineteenth (19th) floor of
                  the Building" is hereby substituted therefor.

         (65)     The reference in Item 51 of such Architectural Requirements to
                  "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (66)     The reference in Item 52 of such Architectural Requirements to
                  "the twenty-first (21st) floor of the Building" is hereby
                  deleted, and a reference to "the nineteenth (19th) floor of
                  the Building" is hereby substituted therefor.

         (67)     The reference in Item 52 of such Architectural Requirements to
                  "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (68)     The first paragraph of Item 53 of such Architectural
                  Requirements shall (i) not apply to the twentieth (20th) floor
                  and the twenty-first (21st) floor of the Lexington Avenue
                  Building, (ii) apply to the twentieth (20th) floor of the
                  Lexington Avenue Building (if Tenant exercises the Shortage
                  Option), and (iii) apply to the New Space.

                                       11
<PAGE>
         (69)     The reference in the last paragraph of Item 53 of such
                  Architectural Requirements to "the 22nd floor of the Building"
                  is hereby deleted, and a reference to "the 20th floor of the
                  Building" is hereby substituted therefor.

         (70)     The reference in Item 54 of such Architectural Requirements to
                  "the 21st floor of the Building" is hereby deleted, and a
                  reference to "the 19th floor of the Building" is hereby
                  substituted therefor.

         (71)     Each reference in Item 54 of such Architectural Requirements
                  to "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (72)     The reference in Item 55 of such Architectural Requirements to
                  "the 22nd floor of the Building" is hereby deleted, and a
                  reference to "the 20th floor of the Building" is hereby
                  substituted therefor.

         (73)     Each reference in Item 56 of such Architectural Requirements
                  to "the twenty-second (22nd) floor of the Building" is hereby
                  deleted, and a reference to "the twentieth (20th) floor of the
                  Building" is hereby substituted therefor.

         (74)     Each reference in Item 57 of such Architectural Requirements
                  to "the twenty-second (22nd) floor of the Building" is hereby
                  deleted, and a reference to "the twentieth (20th) floor of the
                  Building" is hereby substituted therefor.

         (75)     The references in Schedule 1 to such Architectural
                  Requirements to the twentieth (20th) floor in the Lexington
                  Avenue Building and the twenty- first (21st) floor of the
                  Lexington Avenue Building are hereby deleted.

         (76)     The Schematic Drawings listed as Schedule 1 to Exhibit 22.1 of
                  the Lease are hereby modified as described on Exhibit "C"
                  attached hereto and made a part hereof.

         (77)     Item 6 on Exhibit 22.1 of the Lease is hereby modified to
                  delete the introductory clause "13-21st Floors" and the clause
                  "13-19th Floors" is hereby substituted therefor.

         (78)     Item 7 on Exhibit 22.1 of the Lease is hereby modified to
                  delete the introductory clause "22nd Floor" and the clause
                  "20th Floor" is hereby substituted therefor.

         (79)     Item 7 on Exhibit 22.1 of the Lease is hereby modified to
                  delete the clause "22nd floor" and the clause "20th floor" is
                  hereby substituted therefor.

                                       12
<PAGE>
         (80)     The reference to the "twenty-first (21st) floor" in the
                  description of the Second Construction Milestone Stage as set
                  forth in Exhibit 22.6 of the Lease is hereby deleted, and a
                  reference to the "nineteenth (19th) floor" is hereby
                  substituted therefor.

         (81)     Exhibit 39.1 of the Lease is hereby modified by deleting the
                  first sentence under the heading "58th Street and 59th Street
                  & Lexington Avenue Corners (B)" and substituting therefor the
                  following sentence:

                  Tenant high technology signage display located within the
                  windows of the Lexington Avenue Building on floors 3-5 and
                  within the windows of the Third Avenue Building on floors 3-5.

         3. Usable Area Statement. Landlord and Tenant acknowledge that (i)
Landlord shall be deemed to have given to Tenant in accordance with Section
22.4(B)(1) of the Lease a Usable Area Statement that sets forth the Usable Area
for each Deliverable Unit as provided in Exhibit "D" attached hereto and made a
part hereof, (ii) the Usable Area for each Deliverable Unit as set forth in
Exhibit "D" attached hereto shall be deemed to have satisfied the parameters set
forth in Item 3 of the Architectural Requirements that are attached to the Lease
as part of the Work Exhibit, and (iii) the Usable Area that constitutes Bracing
Area (hereinafter defined) or Special East Core Areas (hereinafter defined)
shall not be taken into account for purposes of determining whether (x) Landlord
satisfies the parameters set forth in Items 1 and 2 of the Architectural
Requirements that are attached to the Lease as part of the Work Exhibit, or (y)
Tenant has the right to exercise the Shortage Option. Nothing contained in this
Section 3 limits the rights or obligations of the parties regarding the
measurement of the Usable Area of each Deliverable Unit as contemplated by
Section 22.4 of the Lease.

         4. Special Rules for the Structural Bracing in the Western Core.

         (1) Subject to the terms of this Section 4, Landlord and Tenant
acknowledge that for purposes of the Lease (as amended hereby), the Usable Area
of the Premises shall include, without limitation, the floor area that lies
immediately underneath the structural bracing that is adjacent to the core of
the Lexington Avenue Building (the floor area that lies immediately underneath
such structural bracing in the Lexington Avenue Building being referred to
herein as the "Bracing Area"). Nothing contained in this Section 4 limits
Landlord's obligation to construct the Premises in accordance with the
Architectural Requirements that constitute part of the Work Exhibit (except that
the parties' respective rights and obligations in respect of the Bracing Area,
the Limited Bracing Area and the Dead Space shall be governed by this Section
4). Landlord shall not have the right to include in the Premises more than a
cumulative total of approximately five thousand (5,000) square feet of Rentable
Area that constitutes the Bracing Area. Landlord, as part of the Work, shall
install the sheetrock encasement as close as reasonably practicable to the
structural bracing in the Bracing Area (it being understood that the
construction of such sheetrock encasements for such structural bracing shall not
constitute a Tenant Work Component).

                                       13
<PAGE>
         (2) Subject to the terms of this Section 4(2), the Usable Area of the
Premises shall not include any particular portion of the Bracing Area to the
extent that (x) the distance from the top of the six (6)-inch raised floor to
the underside of the fireproofed structural bracing and the Building Systems
running adjacent thereto in such portion of the Bracing Area is less than eight
(8) feet, six (6) inches, (y) Tenant does not use such portion of the Bracing
Area for any purpose, and (z) Tenant encloses such portion of the Bracing Area
with permanent partitioning (such as sheetrock partitioning) (any portion of the
Bracing Area that meets the requirements set forth in clauses (x), (y) and (z)
above being referred to herein as "Dead Space"; any portion of the Bracing Area
that meets the requirement described in clause (x) above (regardless of whether
such portion of the Bracing Area also satisfies the requirements described in
clauses (y) and (z) above) being referred to herein as "Limited Bracing Area").
Tenant shall have the right to declare that a portion of the Bracing Area
constitutes Dead Space by giving notice thereof to Landlord on or prior to the
sixtieth (60th) day after the Rent Commencement Date for the applicable
Deliverable Unit. If Tenant so declares that a portion of the Bracing Area
constitutes Dead Space, then Landlord shall have the right to inspect the
applicable portion of the Premises to the extent reasonably necessary to confirm
Tenant's aforesaid declaration. Either party shall have the right to submit to
an Expedited Arbitration Proceeding a dispute between the parties regarding the
designation of the Dead Space as contemplated by this Section 4(2). If any
Bracing Area constitutes Dead Space as provided in this Section 4(2), then such
Bracing Area shall constitute Usable Area during the period that such Bracing
Area no longer qualifies as Dead Space as provided in this Section 4(2).

         (3) Landlord and Tenant acknowledge that the Fixed Rent for the Bracing
Area shall be calculated in accordance with the terms of the Lease (as modified
hereby), except that the Fixed Rent for any Limited Bracing Area (other than the
Dead Space) shall be calculated at the rate of (i) Thirty Dollars ($30) per
square foot of Rentable Area for the 1st Rental Period, (ii) Thirty-Three and
3,000/10,000 Dollars ($33.3000) per square foot of Rentable Area for the 2nd
Rental Period, (iii) Thirty-Six and 9,630/10,000 Dollars ($36.9630) per square
foot of Rentable Area for the 3rd Rental Period, (iv) Forty-One and 289/10,000
Dollars ($41.0289) per square foot of Rentable Area for the 4th Rental Period,
(v) Forty-Five and 5,421/10,000 Dollars ($45.5421) per square foot of Rentable
Area for the 5th Rental Period, (vi) Fifty and 5,517/10,000 Dollars ($50.5517)
per square foot of Rentable Area for the 6th Rental Period, and (vii) Fifty-Six
and 1,124/10,000 Dollars ($56.1124) per square foot of Rentable Area for the 7th
Rental Period. Landlord and Tenant acknowledge that Tenant shall not be required
to pay Fixed Rent for any Dead Space by virtue of such Dead Space not being
included in Usable Area as provided in this Section 4. If a portion of the
Bracing Area constitutes Dead Space as determined in accordance with Section
4(2) hereof, then Tenant shall have the right to credit against the Rental
otherwise coming due hereunder an amount equal to the Fixed Rent that Tenant has
theretofore paid to Landlord for such Dead Space, until such credit is
exhausted.

         (4) In connection with the determination of the Rental Value of any
portion of the Renewal Premises that constitutes Limited Bracing Area for the
Renewal Term, the Base Rental Amount shall be the product obtained by
multiplying (x) the number of square feet of Rentable Area in such portion of
the Renewal Premises, by (y) (a) Fifty-Six and 1,124/10,000 Dollars ($56.1124)
for the period from the first day of the Renewal Term to the day immediately

                                       14
<PAGE>
preceding the twenty-eighth (28th) anniversary of the Last Commencement Date,
(b) Sixty-Two and 2,848/10,000 Dollars ($62.2848) for the period from the
twenty-eighth (28th) anniversary of the Last Commencement Date to the day
immediately preceding the thirty-second (32nd) anniversary of the Last
Commencement Date, and (c) Sixty-Nine and 1,361/10,000 Dollars ($69.1361) for
the period from the thirty-second (32nd) anniversary of the Last Commencement
Date to the last day of the Renewal Term.

         (5) The Comparison Amount for any portion of the Premises that
constitutes Limited Bracing Area shall be as indicated for "Limited Areas" on
Exhibit "A" attached hereto.

         (6) Subject to the terms of this Section 4(6), Landlord acknowledges
that Landlord has heretofore advised Tenant that Landlord currently expects that
(i) the portion of the Bracing Area in respect of which the distance from the
top of the six (6)-inch raised floor to the underside of the fireproofed
structural bracing and the Building Systems running adjacent thereto in such
portion of the Bracing Area is eight (8) feet or more will consist of
approximately 1,451 square feet of Rentable Area, and (ii) the portion of the
Bracing Area in respect of which the distance from the top of the six (6)-inch
raised floor to the underside of the fireproofed structural bracing and the
Building Systems running adjacent thereto in such portion of the Bracing Area is
less than eight (8) feet will consist of approximately 2,880 square feet of
Rentable Area. Subject to Section 4(1) hereof, Landlord shall not have any
liability to Tenant to the extent that the Bracing Areas do not conform to
Landlord's expectations as set forth in this Section 4(6).

         5. Special Rules for Ceiling Heights in the Eastern Core.

         (1) Notwithstanding Item 54 of the Architectural Requirements that
constitute part of the Work Exhibit, the Clear Height (hereinafter defined) in
the portions of the Premises that are located in the core of the Third Avenue
Building as shown on Exhibit "E" attached hereto and made a part hereof shall
not be less than eight (8) feet (such portions of the Premises that are located
in the core of the Third Avenue Building as shown on Exhibit "E" attached hereto
being referred to herein as the "Special East Core Areas"). As used herein, the
term "Clear Height" shall mean the height from the top of the six (6)-inch
raised floor to the underside of the fireproofed structure and the obstructions
that are required for the Building Systems (it being understood that such
obstructions for the Building Systems shall include, without limitation, the
chilled water supply and return piping, the general exhaust duct work, and the
toilet exhaust duct work, and any other items shown on Exhibit "F" attached
hereto and made a part hereof). Landlord shall not have the right to include in
the Premises (x) more than a cumulative total of approximately two thousand two
hundred ninety-two (2,292) square feet of Rentable Area that constitutes the
Special East Core Areas, or (y) any portion of the Special East Core Areas to
the extent that Tenant does not have access thereto through a passage having a
clear plan dimension of at least three (3) feet, six (6) inches and a Clear
Height of at least the height of the adjacent Special East Core Area.

         (2) The Fixed Rent for any Special East Core Area in respect of which
the Clear Height (x) is less than eight (8) feet and nine (9) inches, and (y)
complies with the requirements set forth in Section 5(1) hereof shall be (i)
Thirty Dollars ($30) per square foot of Rentable Area

                                       15
<PAGE>
for the 1st Rental Period, (ii) Thirty-Three and 3,000/10,000 Dollars ($33.3000)
per square foot of Rentable Area for the 2nd Rental Period, (iii) Thirty-Six and
9,630/10,000 Dollars ($36.9630) per square foot of Rentable Area for the 3rd
Rental Period, (iv) Forty-One and 289/10,000 Dollars ($41.0289) per square foot
of Rentable Area for the 4th Rental Period, (v) Forty-Five and 5,421/10,000
Dollars ($45.5421) per square foot of Rentable Area for the 5th Rental Period,
(vi) Fifty and 5,517/10,000 Dollars ($50.5517) per square foot of Rentable Area
for the 6th Rental Period, and (vii) Fifty-Six and 1,124/10,000 Dollars
($56.1124) per square foot of Rentable Area for the 7th Rental Period (any such
portion of the Premises within the core of the Third Avenue Building for which
the Clear Height is less than eight (8) feet and nine (9) inches being referred
to herein as "Limited East Core Space"). Nothing contained in this Section 5(2)
permits Landlord to require Tenant to accept Special East Core Areas that do not
comply with the height requirements set forth in Section 5(1) hereof (and,
accordingly, any portion of the Special East Core Areas in which the Clear
Height is less than eight (8) feet shall not constitute Usable Area for purposes
of the Lease).

         (3) In connection with the determination of the Rental Value of any
portion of the Renewal Premises that constitutes Limited East Core Space for the
Renewal Term, the Base Rental Amount shall be the product obtained by
multiplying (x) the number of square feet of Rentable Area in such portion of
the Renewal Premises, by (y) (a) Fifty-Six and 1,124/10,000 Dollars ($56.1124)
for the period from the first day of the Renewal Term to the day immediately
preceding the twenty-eighth (28th) anniversary of the Last Commencement Date,
(b) Sixty-Two and 2,848/10,000 Dollars ($62.2848) for the period from the
twenty-eighth (28th) anniversary of the Last Commencement Date to the day
immediately preceding the thirty-second (32nd) anniversary of the Last
Commencement Date, and (c) Sixty-Nine and 1,361/10,000 Dollars ($69.1361) for
the period from the thirty-second (32nd) anniversary of the Last Commencement
Date to the last day of the Renewal Term.

         (4) The Comparison Amount for any portion of the Premises that
constitutes Limited East Core Space shall be as indicated for "Limited Areas" on
Exhibit "A" attached hereto.

         6. Amendment to Memorandum of Lease. Landlord and Tenant shall execute,
acknowledge and deliver, simultaneously with the execution and delivery hereof,
(i) an Amendment to Memorandum of Lease, in the form of Exhibit "G" attached
hereto and made a part hereof, and (ii) any transfer tax returns that are
required to accompany such memorandum for recording purposes. Tenant shall
submit such Amendment to Memorandum of Lease for recording in the appropriate
government office promptly after the date hereof. Tenant shall pay the recording
charges associated therewith, except that Landlord shall pay any transfer taxes
associated therewith.

         7. Broker. Landlord and Tenant hereby represent and warrant to the
other party that such party has not dealt with any broker in connection with the
execution and delivery hereof, except Broker. Tenant shall indemnify Landlord,
and hold Landlord harmless, from and against, any claim for commission or other
similar compensation that is made by any broker with whom Tenant has dealt
(including, without limitation, Broker). Landlord shall indemnify

                                       16
<PAGE>
Tenant, and hold Tenant harmless, from and against, any claim for commission or
other similar compensation that is made by any broker with whom Landlord has
dealt, other than Broker.

         8. Landlord's Notices.

         (1) Landlord hereby advises Tenant that for purposes of Section 25.1 of
the Lease, Landlord's address is as follows:

         c/o Vornado Office Management LLC
         888 Seventh Avenue
         New York, New York   10019
         Attn: Mr. David R. Greenbaum

                  with copies to:

                  Vornado Realty Trust
                  210 Route 4 East
                  Paramus, New Jersey   07652
                  Attn: Joseph Macnow

                  and to:

                  Proskauer Rose LLP
                  1585 Broadway
                  New York, New York   10036
                  Attn: Lawrence J. Lipson, Esq.

         (2) Landlord hereby advises Tenant that for purposes of Section 25.2 of
the Lease, Landlord's address is as follows:

         c/o Vornado Office Management LLC
         888 Seventh Avenue
         New York, New York   10019
         Attn: Mr. David R. Greenbaum

                  with copies to:

                  Vornado Realty Trust
                  210 Route 4 East
                  Paramus, New Jersey   07652
                  Attn: Joseph Macnow

                  and to:

                  Proskauer Rose LLP

                                       17
<PAGE>
                  1585 Broadway
                  New York, New York   10036
                  Attn: Lawrence J. Lipson, Esq.

                  and to:

                  Vornado Realty Trust
                  888 Seventh Avenue
                  New York, New York 10019
                  Attn: Melvyn Blum

         9. Reaffirmation. Landlord and Tenant hereby acknowledge that (x) the
Lease, as amended hereby, remains in full force and effect, (y) accordingly,
nothing contained herein shall be deemed to limit or expand the parties'
respective rights and obligations regarding the preparation or review of the
Building Plans, as provided in Section 22.3 of the Lease, and (z) except as
expressly provided herein, Item 54 of the Architectural Requirements that
constitutes part of the Work Exhibit remains unmodified.

         IN WITNESS WHEREOF, 731 and BLP have duly executed and delivered this
First Amendment of Lease as of the date first above written.

                               SEVEN THIRTY ONE LIMITED PARTNERSHIP

                               By:      Alexander's Department Stores of
                                        Lexington Avenue, Inc., general partner

                                        By:      ______________________________
                                                 Name:
                                                 Title:

                               BLOOMBERG L.P.

                               By:      Bloomberg, Inc., general partner

                                        By:      _______________________________
                                                 Name: Paul F. Darrah, Jr.
                                                 Title: Director of Real Estate

                                       18
<PAGE>
                                   Exhibit "A"

                               Comparison Amounts

<TABLE>
<CAPTION>
Period                                         First Price        Second       Third Price       Fourth         Limited
------                                         -----------        ------       -----------       ------         -------
                                                  Space           Price           Space          Price           Areas
                                                  -----           -----           -----          -----           -----
                                                                  Space                          Space
                                                                  -----                          -----

<S>                                              <C>             <C>           <C>              <C>            <C>
1st Rental Period                                $50.4373        $54.4373        $53.5732       $54.0000       $30.0000

2nd Rental Period                                $55.9854        $60.4254        $59.4663       $59.9400       $33.3000

3rd Rental Period                                $62.1438        $67.0722        $66.0075       $66.5334       $36.9630

4th Rental Period                                $68.9796        $74.4501        $73.2684       $73.8521       $41.0289

5th Rental Period                                $76.5674        $82.6396        $81.3279       $81.9758       $45.5421

6th Rental Period                                $84.9898        $91.7300        $90.2740       $90.9931       $50.5517

7th Rental Period                                $94.3387       $101.8203       $100.2041      $101.0024       $56.1124

25th anniversary of the Last                     $94.3387       $101.8203       $100.2041      $101.0024       $56.1124
Commencement Date to the day
immediately preceding the 28th
anniversary of the Last Commencement
Date

28th anniversary of the Last                    $104.7159       $113.0206       $111.2265      $112.1126       $62.2848
Commencement Date to the day
immediately preceding the 32nd
anniversary of the Last Commencement
Date

32nd anniversary of the Last                    $116.2347       $125.4528       $123.4614      $124.4450       $69.1361
Commencement Date to the day
immediately preceding the 35th
anniversary of the Last Commencement
Date
</TABLE>
<PAGE>
                                   Exhibit "B"

                                Occupancy Density

<TABLE>
Description                                                        Maximum Allowable Occupancy per Egress
-----------                                                        --------------------------------------
                                                                   Stairs
                                                                   ------

<S>                                                                <C>
Lexington Avenue Building - Floors
20, 19, 18, 17, 16, 15 , 14, 13, 10, 9, and 8.                     240 persons per floor.

7th Floor - East                                                   480 persons

7th Floor - West                                                   360 persons

6th Floor - East                                                   480 persons

6th Floor - West                                                   480 persons

5th Floor - East                                                   480 persons

5th Floor - West                                                   480 persons

4th Floor - East                                                   480 persons

4th Floor - West                                                   480 persons

3rd Floor - East                                                   480 persons

3rd Floor - West                                                   480 persons

Lower Level 2                                                      780 persons
</TABLE>
<PAGE>
                                   Exhibit "C"

                               Schematic Drawings

Schedule 1 to Exhibit 22.1 is hereby modified to:

(I) add thereto the following Schematic Drawing (for the New Space):

                      A-111, last dated April 15, 2002; and

(II) delete the reference therein to Drawing A-2 for Lower Level 2, dated April
20, 2001, and substitute therefor a reference to Drawing A-101 for Lower Level
2, last dated February 15, 2002 and marked "Issued for Construction."
<PAGE>
                                  Exhibit "D"

                             Usable Area Statement

<TABLE>
<CAPTION>
Deliverable Unit                                                      Square Feet of Usable Area
----------------                                                      --------------------------
<S>                                                                   <C>
Lower Level 3                                                               2,047
Lower Level 2                                                              64,768
Third Floor - Lexington Building                                           37,434
Third Floor - Third Avenue Building                                        29,614
Fourth Floor                                                               69,111
Fifth Floor                                                                69,401
Sixth Floor                                                                47,913
Seventh Floor                                                              39,924
Eighth Floor - Lexington Avenue Building                                   18,340
Ninth Floor - Lexington Avenue Building                                    18,340
Tenth Floor - Lexington Avenue Building                                    18,340
Thirteenth Floor - Lexington Avenue
Building                                                                   15,527
Fourteenth Floor - Lexington Avenue
Building                                                                   15,570
Fifteenth Floor - Lexington Avenue
Building                                                                   15,570
Sixteenth Floor - Lexington Avenue
Building                                                                   15,570
Seventeenth Floor - Lexington Avenue
Building                                                                   15,570
Eighteenth Floor - Lexington Avenue
Building                                                                   15,570
Nineteenth Floor - Lexington Avenue
Building                                                                   15,570
</TABLE>
<PAGE>
                                   Exhibit "E"

                             Special East Core Areas

                                  See Attached

The attached plans shall apply only for purposes of depicting the Special East
Core Areas (as the hatched areas) and not for any other purpose.
<PAGE>
                                   Exhibit "F"

                                  Clear Height

See Typical East Core Floor Plan, F&K SKM-10-15-01.2, Latest Revision 10/15/01,
a copy of the relevant portion of which is attached hereto (it being understood
that the aforesaid plan shall apply for purposes of the definition of Clear
Height only to the extent that the aforesaid plan depicts space in the Special
East Core Areas).
<PAGE>
                                  Exhibit "G"

                        Memorandum of Amendment of Lease

SEVEN THIRTY ONE LIMITED PARTNERSHIP,

                                                              Landlord,

                           -and-

BLOOMBERG L.P.,

                                                              Tenant.

                        MEMORANDUM OF AMENDMENT OF LEASE

Dated as of April ___, 2002

The Premises affected by the within instrument lies in the City of New York,
County of New York, State of New York

Address of Property:            The Site Bounded by Lexington Avenue, East 58th
                                Street, East 59th Street and Third Avenue
Section:          5
Block:            1313
Lot:              40

                                              Record and Return to:

                                              WILLKIE FARR & GALLAGHER
                                              787 Seventh Avenue
                                              New York, New York  10019

                                              Attention:  Steven D. Klein, Esq.
<PAGE>
                        Memorandum of Amendment of Lease
                          Pursuant to Section 291-cc of
                         The New York Real Property Law

Reference to the Original Lease:    The Amendment of Lease described herein
                                    amends the Agreement of Lease, dated as of
                                    April 30, 2001, between Landlord and Tenant
                                    (said Agreement of Lease being referred to
                                    herein as the "Original Lease"; the Original
                                    Lease, as amended by such Amendment of
                                    Lease, being referred to herein as the
                                    "Lease"). A Memorandum of Lease for the
                                    Original Lease was recorded on May 14, 2001
                                    in the Office of the Register of The City of
                                    New York (New York County) in Reel 3281,
                                    page 1624.

Date of Execution of the            As of April ___, 2002
Amendment of Lease:

Name and Address of                 SEVEN THIRTY ONE LIMITED PARTNERSHIP
Landlord:                           c/o      Vornado Realty Trust
                                             210 Route 4 East
                                             Paramus, New Jersey  07652
                                             Attention:  Joseph Macnow

Name and Address of Tenant:         Until Tenant takes occupancy of the premises
                                    for the conduct of its business:

                                    BLOOMBERG L.P.
                                    499 Park Avenue
                                    New York, New York  10022
                                    Attention:  Paul F. Darrah, Jr.

                                      and

                                    From and after the date Tenant takes
                                    occupancy of the premises for the conduct
                                    of its business:

                                    BLOOMBERG L.P.
                                    731 Lexington Avenue
                                    New York, New York 10022
                                    Attention:  Paul F. Darrah, Jr.

Nature of the Amendment             The Amendment of Lease (i) deletes from the
                                    premises demised
<PAGE>
of Lease:                           by the Lease the entire rentable area on the
                                    twentieth (20th) and twenty-first (21st)
                                    floors of the Building, and (ii) adds to the
                                    premises demised by the Lease the entire
                                    rentable area on the third (3rd) floor of
                                    the Third Avenue Building. The Fixed
                                    Expiration Date for the premises demised by
                                    the Lease is the day immediately preceding
                                    the twenty-fifth (25th) anniversary of the
                                    last to occur of each of the Commencement
                                    Dates applicable to the Initial Premises
                                    (except that in no event shall the term of
                                    the Lease expire later than the twenty-sixth
                                    (26th) anniversary of the First Commencement
                                    Date). Tenant's renewal rights as set forth
                                    in the Original Lease remain in effect.

Description of the                  The entire third (3rd), fourth (4th), fifth
Premises demised by the             (5th), sixth (6th), seventh (7th), eighth
Original Lease, as                  (8th), ninth (9th), tenth (10th), thirteenth
amended by the                      (13th), fourteenth (14th), fifteenth (15th),
Amendment of Lease:                 sixteenth (16th), seventeenth (17th),
                                    eighteenth (18th), and nineteenth (19th),
                                    floors of the Lexington Avenue Building; the
                                    entire third (3rd), fourth (4th), fifth
                                    (5th), sixth (6th), and seventh (7th) floors
                                    of the Third Avenue Building; the entire
                                    Bridge Building; and portions of Lower Level
                                    2 and Lower Level 3 of the Building. Such
                                    buildings are to be constructed on the site
                                    bounded by Lexington Avenue, East 58th
                                    Street, East 59th Street and Third Avenue in
                                    the Borough of Manhattan, City, County and
                                    State of New York as such site is more
                                    particularly described on Schedule A
                                    attached hereto.

Memorandum of Lease:                This instrument, executed in connection with
                                    the Amendment of Lease, is intended to be
                                    and is entered into as a memorandum thereof
                                    solely for the purpose of recordation and
                                    the giving of notice of the tenancy created
                                    by the Lease and of the rights and
                                    obligations of Landlord and Tenant
                                    thereunder and shall not, in any event, be
                                    construed to change, vary, modify or
                                    interpret the Lease or any of the terms,
                                    covenants or conditions thereof, or any part
                                    thereof, which are set forth, described or
                                    summarized herein and reference is hereby
                                    made to the Lease for any and all purposes.
                                    All capitalized terms used in this
                                    Memorandum of Amendment of Lease shall have,
                                    unless otherwise defined herein, the
                                    meanings ascribed to them in the Amendment
                                    of Lease.

         IN WITNESS WHEREOF, Landlord and Tenant have respectively executed and
delivered this Memorandum of Amendment of Lease as of the date first above
written.

                                       1
<PAGE>
                                    SEVEN THIRTY ONE LIMITED PARTNERSHIP

                                    By:  Alexander's Department Stores of
                                         Lexington Avenue, Inc., general partner

                                         By:  /s/ Joseph Macnow
                                              -----------------------
                                       Name: Joseph Macnow
                                     Title: Executive Vice President

                                    BLOOMBERG L.P.

                                    By:  Bloomberg Inc., general partner

                                         By:  /s/ Paul F. Darrah, Jr.
                                              -----------------------
                                              Name: Paul F. Darrah, Jr.
                                              Title: Director of Real Estate
<PAGE>
STATE OF NEW YORK                   )
                                    )        ss.:
COUNTY OF NEW YORK                  )

         On the ___ day of April, 2002, before me, the undesigned, a Notary
Public in and for said State, personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and who acknowledged to me that such individual executed
such instrument in such individual's capacity, and that by such individual's
signature on such instrument, such individual, or the person upon behalf of
which such individual acted, executed the instrument.

                                  ---------------------------------
                                  Notary Public

STATE OF NEW YORK                   )
                                    )        ss.:
COUNTY OF NEW YORK                  )

         On the ____ day of April, 2002, before me, the undesigned, a Notary
Public in and for said State, personally appeared
______________________________, personally known to me or proved to me on the
basis of satisfactory evidence to be the individual whose name is subscribed to
the within instrument and who acknowledged to me that such individual executed
such instrument in such individual's capacity, and that by such individual's
signature on such instrument, such individual, or the person upon behalf of
which such individual acted, executed the instrument.

                                  ---------------------------------
                                  Notary Public
<PAGE>
                                  SCHEDULE "A"

                                LEGAL DESCRIPTION

PARCEL I - FORMER LOTS 40 AND 42, NOW KNOWN AS PART OF LOT 40

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

BEGINNING: at the corner formed by the intersection of the southerly side of
59th Street with the westerly side of Third Avenue;

RUNNING THENCE southerly along the westerly side of Third Avenue, 150 feet 5
inches;

THENCE westerly parallel with the southerly side of 59th Street, 100 feet;

THENCE northerly parallel with the westerly side of Third Avenue, 150 feet 5
inches to the southerly side of 59th Street;

THENCE easterly along said southerly side of 59th Street, 100 feet to the point
or place of BEGINNING.

PARCEL II - FORMER LOT 43, NOW KNOWN AS PART OF LOT 40

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

BEGINNING at a point on the easterly side of Lexington Avenue distant 80 feet 5
inches southerly from the corner formed by the intersection of the easterly side
of Lexington Avenue with the southerly side of 59th Street;

THENCE southerly along the easterly side of Lexington Avenue 120 feet 5 inches
to the corner formed by the intersection of the northerly side of East 58th
Street and the said easterly side of Lexington Avenue;

THENCE easterly along the northerly side of East 58th Street 420 feet to the
corner formed by the intersection of the northerly side of East 58th Street and
the westerly side of Third Avenue;

THENCE northerly along the said westerly side of Third Avenue 50 feet 5 inches;

THENCE westerly parallel with the northerly side of 58th Street 100 feet;
<PAGE>
THENCE northerly parallel with the easterly side of Lexington Avenue and part of
the distance through a party wall at right angles to 59th Street 150 feet 5
inches to the southerly side of 59th Street;

THENCE westerly along the southerly side of 59th Street 225 feet;

THENCE southerly parallel with the easterly side of Lexington Avenue 80 feet 5
inches;

THENCE westerly parallel with the southerly side of 59th Street and part of the
distance through a party wall 95 feet to the point or place of BEGINNING.

PARCEL III - FORMER LOT 50, NOW KNOWN AS PART OF LOT 40

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

BEGINNING at the corner formed by the intersection of the easterly side of
Lexington Avenue with the southerly side of 59th Street;

RUNNING THENCE southerly along the easterly side of Lexington Avenue 80 feet 5
inches;

THENCE easterly parallel with the southerly side of 59th Street and part of the
distance through a party wall 95 feet;

THENCE northerly parallel with the easterly side of Lexington Avenue 80 feet 5
inches to the southerly side of 59th Street;

THENCE westerly along the southerly side of 59th Street 95 feet to the point or
place of BEGINNING.

                                  Schedule A-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]