Document:

EXHIBIT 10.6

AMENDED AND RESTATED EMPLOYMENT
AGREEMENT (this “Agreement”), dated as of November 9,
2006, between ACA CAPITAL HOLDINGS, INC., a Delaware corporation (“Holdings”),
ACA FINANCIAL GUARANTY CORPORATION, a Maryland corporation (“Financial,”
and, together with Holdings the “Company”) and EDWARD U. GILPIN (the “Executive”).

The Company and the Executive are parties to that
certain Amended and Restated Employment Agreement, dated as of September 30,
2004 (the “Effective Date”), as amended by amendment number one thereto
dated January 2, 2005 (the “Former Employment Agreement”).

Financial desires to continue to employ the Executive
and the Executive desires to continue such employment, but under modified terms
as described herein.

Accordingly, in consideration of the premises and
mutual covenants contained herein and for other good and valuable
consideration, the receipt and adequacy of which are mutually acknowledged, the
Company and the Executive agree as follows:

1.                                       Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

(a)                                  “Affiliate”
of a Person means a Person that directly or indirectly through one or more
intermediaries controls, is controlled by or is under common control with, the
Person specified.  Unless the context
otherwise requires, the term “control” (including the terms “controlling,” “controlled
by” and “under common control with”) means the possession, direct or indirect,
of the power to direct or cause the direction of the management and policies of
a Person, whether through the ownership of voting securities, by contract, or
otherwise.

(b)                                 “Base
Salary” means the salary provided for in Section 4 or any increased
salary granted to the Executive pursuant to Section 4.

(c)                                  “Board”
means the Board of Directors of Holdings, as constituted from time to time.

(d)                                 “Cause”
means the Executive:

(i)                                     is
convicted of, or pleads nolo contendere (or similar plea) to, a felony or a
crime involving moral turpitude;

(ii)                                  performs
an action or fails to take an action that, in the reasonable judgment of a
majority of the members of the Board, constitutes willful dishonesty, larceny,
fraud or gross negligence by the Executive in the performance of the Executive’s
duties to the Company, or makes a knowing or reckless misrepresentation
(including by omission of any material adverse information) to shareholders,
directors or officers of the Company, which in the case of gross negligence
only, is material and adverse to the Company or its business or its reputation;

 

(iii)                               engages
in independently verified (determined by a qualified medical or mental health
professional), continuing and unremedied for a period of at least six (6)
months, substance abuse involving drugs or alcohol;

(iv)                              willfully
and repeatedly fails, after thirty (30) business days notice, to materially
follow the material written policies of the Company or lawful instructions of
the Board; or

(v)                                 materially
breaches this Agreement or any written policy, rule or regulation adopted by
the Company or any of its Subsidiaries relating to compliance with securities
laws or other laws, rules or regulations and such breach is not cured by the
Executive or waived in writing by the Company within thirty (30) days after
written notice of such breach to the Executive.

No act, or failure to act, on Executive’s part shall
be considered “willful” unless done, or omitted to be done, without good faith
and without reasonable belief that the action or omission was in the best
interest of the Company.

(e)                                  “Change
of Control” means the occurrence of any of the following events after the
Effective Date:

(i)                                     any
Person (other than any Person that is a stockholder of Holdings as of the
Effective Date, or other than a trustee or other fiduciary holding securities
under an employee benefit plan of Holdings, or a corporation owned directly or
indirectly by the stockholders of Holdings in substantially the same
proportions as their ownerships of stock of Holdings) becomes the beneficial
owner, directly or indirectly, of securities of Holdings representing more than
fifty percent (50%) of the combined voting power of Holdings’ then outstanding
voting securities; or

(ii)                                  during
any period of two (2) consecutive years (not including any period prior to the
Effective Date), individuals who at the beginning of such period constitute the
Board (and any new director, whose election by Holdings’ stockholders was
approved by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors at the beginning of the period or whose
election or nomination for election was so approved), cease for any reason to
constitute a majority thereof; or

(iii)                               any
Person (other than any Person that is a stockholder of Holdings as of the
Effective Date, or other than a trustee or other fiduciary holding securities
under an employee benefit plan of Holdings, or a corporation owned directly or
indirectly by the stockholders of Holdings in substantially the same
proportions as their ownerships of stock of Holdings) is or becomes able to
elect a majority of the members of the Board; or

(iv)                              a
closing or completion, as applicable, of (i) the sale or disposition of all or
substantially all of Holdings’ assets or (ii) a merger, consolidation, or
reorganization of Holdings with or involving any other corporation, other than
a merger, consolidation, or reorganization that would result in the voting
securities of Holdings outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting
securities of the surviving entity) at least fifty percent (50%) of the
combined voting

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power of the
voting securities of Holdings (or such surviving entity) outstanding
immediately after such merger, consolidation, or reorganization.

However, in no event shall a “Change of Control” be
deemed to have occurred, with respect to the Executive, if Executive is part of
a purchasing group that consummates the Change of Control transaction.  Executive shall be deemed “part of a
purchasing group” for purposes of the preceding sentence if the Executive is an
equity participant in the purchasing Person (except for: (i) passive ownership
of less than three percent (3%) of the stock of the purchasing company; or (ii)
ownership of an equity interest in the purchasing company or group that is
otherwise not significant, as determined prior to the Change of Control by a
majority of the non-employee continuing directors of Holdings).

(f)                                    “Claim”
means any claim, demand, request, investigation, dispute, controversy, threat,
discovery request, or request for testimony or information.

(g)                                 “Common
Stock” means Common Stock, par value $0.10 per share, of Holdings.

(h)                                 “Constructive
Termination” means a termination by the Executive of his employment with
the Company on written notice given to the Company within thirty (30) days
following the date on which he learns of the occurrence, without his prior
written consent, of any of the following events, if the Company shall have
failed to cure such event within thirty (30) days following receipt of written
notice from the Executive of a request to cure such event:

(i)                                     a
reduction in his then current Base Salary or in his current bonus level
pursuant to the Company’s bonus plan;

(ii)                                  a
material breach of the Company’s obligations under this Agreement;

(iii)                               the
termination of, or a reduction in, any material employee benefit or perquisite
enjoyed by him (other than as part of an across-the-board reduction applying to
all executive officers of the Company which has been approved by the Board or
the Compensation Committee thereof (the “Compensation Committee”));

(iv)                              a
material change in the Executive’s positions, titles or responsibilities with
the Company (other than as a result of a promotion) as set forth in Section
3 of this Agreement, or any action by the Company which results in a
material diminution in the authority of Executive, excluding for this purpose,
changes to the individuals, groups, positions, or divisions which report to the
Executive or, if applicable, the Executive’s removal as a member of the Board
or as a member of any board of directors of any Subsidiary of the Company.  For the avoidance of doubt, a change in the
Person to whom the Executive reports shall not be deemed a Constructive
Termination hereunder;

(v)                                 the
relocation of the Executive’s principal office to a location outside of
Manhattan, New York without his consent;

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(vi)                              the
failure of the Company to obtain the assumption in writing of its obligation to
fully perform this Agreement by any successor to all or substantially all of
the assets of the Company within 15 days after a merger, consolidation, sale,
or similar transaction; or

(vii)                           a
material breach by the Company of any or all of the representations made by the
Company in Section 12(a).

(i)                                     “Disability”
means the Executive’s inability, due to physical or mental incapacity, to
substantially perform his duties and responsibilities under this Agreement for
a period of 90 consecutive days or any 180 days out of 365 consecutive days as
determined by an approved medical doctor. 
For this purpose, an “approved medical doctor” means a medical doctor
mutually selected by the Executive and the Company.  If the Executive and the Company cannot agree
on a medical doctor, each Party shall select a medical doctor and the two
doctors shall select a third who shall be the approved medical doctor for this
purpose.

(j)                                     “Parties”
means the Company and the Executive.

(k)                                  “Person”
means any individual, corporation, partnership, limited liability company,
joint venture, trust, estate, board, committee, agency, body, employee benefit
plan, association, joint stock company, unincorporated organization or
governmental entity or any department, agency or political subdivision thereof
or other person or entity.

(l)                                     “Proceeding”
means any threatened or actual action, suit, or proceeding, at law or in
equity, whether civil, criminal, administrative, investigative, appellate, or
other.

(m)                               “Pro-Rata
Annual Incentive Award” means an amount equal to the product obtained by
multiplying (i) the Executive’s target annual incentive award set forth in Section
5 for the year during which his employment hereunder terminates (with such
award deemed to be no less than the greater of (x) the target annual incentive
award for such year pursuant to Section 5 or (y) the actual annual
incentive award of the Executive in the prior year of employment hereunder)
times (ii) a fraction, the numerator of which is the number of days on which
the Executive was employed by the Company during such year and the denominator
of which is 365.

(n)                                 “Subsidiary”
means, with respect to any Person, any corporation, limited liability company,
partnership, association or other business entity of which (i) if a
corporation, a majority of the total voting power of shares of stock entitled
(without regard to the occurrence of any contingency) to vote in the election
of directors, managers or trustees thereof is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries
of that Person or a combination thereof, or (ii) if a limited liability
company, partnership, association or other business entity, a majority of the
limited liability company, partnership or other similar ownership interest
thereof is at the time owned or controlled, directly or indirectly, by any
Person or one or more Subsidiaries of that Person or a combination
thereof.  For purposes hereof, a Person
or Persons shall be deemed to have a majority ownership interest in a limited
liability company, partnership, association or other business entity if such
Person or Persons shall be allocated a majority of limited liability company,
partnership, association or

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other business
entity gains or losses or shall be or control any managing director or general
partner of such limited liability company, partnership, association or other
business entity.

(o)                                 “Termination
Date” means the date on which the Executive’s employment hereunder
terminates for any reason.

(p)                                 “Voting
Stock” means issued and outstanding capital stock or other securities of
any class or classes having general voting power, under ordinary circumstances
in the absence of contingencies, to elect, in the case of a corporation, the
directors of such corporation and, in the case of any other entity, the
corresponding governing Person(s).

2.                                       Term
of Employment.  The Company agrees to
employ the Executive under this Agreement, and the Executive accepts such
employment, for the Term of Employment. 
The Term of Employment shall commence on the Effective Date and shall
end on the third anniversary thereof.  On the third anniversary of the Effective
Date, and on every successive one year anniversary thereafter, the Term of
Employment shall automatically be renewed on the same terms and conditions set
forth herein as modified from time to time by the Parties for additional
one-year periods, unless either Party gives the other Party written notice of
the election not to renew the Term of Employment at least 60 days’ prior to any
such renewal date, whereupon the Executive’s employment shall terminate on the
anniversary date under the terms of this Agreement.  For the avoidance of doubt, in no event shall
such non-renewal by the Company of the Term of Employment be deemed a
termination by the Company of the Executive’s employment hereunder.  Notwithstanding the foregoing, the Term of
Employment may be earlier terminated in accordance with the provisions set
forth in Section 8.

3.                                       Positions,
Duties, and Responsibilities.

(a)                                  During
the Term of Employment, the Executive shall be employed as the Chief Financial
Officer and Executive Vice President of each of Holdings and Financial, and
shall perform such normal duties, responsibilities, functions and authority and
exercise such powers as are incident to such offices.  The Executive, in carrying out his executive
duties under this Agreement, shall report to the Chief Executive Officer of
such companies and shall devote his best efforts and his full business time and
attention (except for permitted vacation periods and reasonable periods of
illness or other incapacity) to the business and affairs of the Company.  The Executive shall perform his duties and
responsibilities to the Company hereunder to the best of his abilities in a diligent,
trustworthy, professional and efficient manner and shall comply with the
Company’s policies and procedures in all material respects.

(b)                                 Notwithstanding
anything herein to the contrary, nothing shall preclude the Executive from (i)
serving on the boards of directors of a reasonable number of other corporations
or the boards of a reasonable number of trade associations and/or charitable
organizations (provided that in each such case the Executive shall give the
Board at least 10 business days’ advance written notice of the Executive’s
intention to serve on any such board and, if the Board reasonably objects
thereto, the Executive agrees not to serve on such board), (ii) engaging in
charitable activities and community affairs, including political activities,
and (iii) managing his personal investments and affairs, provided that such
activities do not materially

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interfere with
the proper performance of his duties and responsibilities as the Chief
Financial Officer and Executive Vice President of each of Holdings and
Financial.

4.                                       Base
Salary.  The Executive shall be paid
an annual Base Salary of $400,000
per annum, or such higher rate as the Compensation Committee may determine from
time to time (as adjusted from time to time, the “Base Salary”).  The Base Salary shall be payable at intervals
in accordance with the regular payroll practices of the Company applicable to
senior executives but no less frequently than monthly.  The Base Salary shall be reviewed no less
frequently than annually during the Term of Employment for increases.  Without the Executive’s written consent, the
Base Salary shall not be decreased at any time, or for any purpose, during the
Term of Employment (including, without limitation, for the purpose of
determining benefits due under Section 9).

5.                                       Annual
Incentive Awards.  The Executive
shall be eligible for an annual incentive bonus award from the Company in
respect of each fiscal year ending during the Term of Employment.  The Executive’s target annual incentive bonus
amount for each such year shall be an amount equal to one hundred percent
(100%) of his annualized Base Salary for such year, and his actual bonus amount
for each such year shall be determined based on criteria determined by the
Chief Executive Officer of the Company and approved by the Compensation
Committee in its sole discretion.  The
Executive shall receive his annual incentive award payment in respect of any
fiscal year no later than the 60th day following the end of the preceding fiscal
year.

6.                                       Other
Benefits.

(a)                                  Employee
Benefits.  During the Term of Employment,
the Executive shall be entitled to participate in all employee benefit plans,
programs and arrangements made available generally to the Company’s senior
executives or to its employees, including, without limitation or guarantee,
profit-sharing, savings (qualified and non-qualified) and other defined
contribution retirement plans or programs, medical, dental, hospitalization,
vision, short-term and long-term disability and life insurance plans or
programs, accidental death and dismemberment protection, travel accident
insurance, and any other employee welfare benefit plans or programs that may be
made available by the Company from time to time, including any plans or
programs that supplement the above-listed types of plans or programs, whether
funded or unfunded; provided, however, that nothing in this
Agreement shall be construed to require the Company to establish, maintain or
retain any such plans, programs, or arrangements, except for family medical,
dental, and hospitalization insurance providing coverage, at no cost to the
Executive, which shall be required benefit plans for the Executive.

(b)                                 Perquisites.  During the Term of Employment, the Executive
shall be entitled to participate in all fringe benefits and perquisites made
generally available to senior executives of the Company, in each case, at
levels, and on terms and conditions, that are commensurate with his positions
and responsibilities at the Company; provided that the Company shall
provide the Executive with an expense account in an amount not to exceed
$10,000 per annum which shall be used by the Executive for certain executive
benefits and the promotion the business of the Company and its
Subsidiaries.  The Executive shall also
receive such additional fringe benefits and perquisites as the Compensation
Committee may, in its discretion, from time to time provide.

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(c)                                  Vacation.  During the Term of Employment, the Executive
shall be entitled to vacation in accordance with the Company’s vacation
policies in effect from time to time.

(d)                                 Existing
Indebtedness.  Beginning on February
28, 2005 (the “Waiver Date”) and on each of the following two
anniversaries of the Waiver Date thereafter during the initial Term of Employment hereunder, and only for so long as
the Executive shall continue to be employed by the Company hereunder on such
Waiver Date, the Company shall release, cancel, forgive and forever discharge
an amount equal to one third (1/3) of the outstanding principal amount (and any
accrued but unpaid interest thereon) under that certain Promissory Note, dated
September 20, 2001, made by the Executive in favor of the Company in the
original principal amount of $500,000. 
In the event that the Executive’s employment hereunder is terminated by
the Company, other than due to Disability in accordance with Section 8(b)
or for Cause in accordance with Section 8(c)(i), or in the event of the
Executive’s termination of his employment as a result of a Constructive
Termination, the Company shall release, cancel, forgive and forever discharge
the entire outstanding principal amount of such Promissory Note as of the date
of such termination.

7.                                       Reimbursement
of Business and Other Expenses.

(a)                                  The
Executive shall be authorized to incur reasonable business expenses in carrying
out his duties and responsibilities under this Agreement which are consistent
with the Company’s policies in effect from time to time with respect to travel,
entertainment and other business expenses, and the Company shall promptly
reimburse him for all such expenses, subject to his satisfaction of Company
requirements with respect to reporting and documentation of such expenses.

(b)                                 All
amounts payable to the Executive as compensation hereunder shall be subject to
all required and customary withholding by the Company.

8.                                       Termination
of Employment.

(a)                                  Termination
Due to Death.  In the event that the
Executive’s employment hereunder is terminated due to his death, his estate or
his beneficiaries (as the case may be) shall be entitled to the following:

(i)                                     payment
of the Base Salary through the date of his death and for an additional 90 days
thereafter;

(ii)                                  a
Pro-Rata Annual Incentive Award for the year in which his death occurs, payable
in a lump sum promptly after the date of his death in due course with such
payments made to other executives of the Company following the end of the
Company’s fiscal year;

(iii)                               a
lump-sum payment promptly after his death in respect of all accrued but unused
vacation days at his Base Salary rate in effect on the Termination Date,
payment of any other amounts earned, accrued and owing to the Executive but not
yet paid and

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receipt of
other vested benefits in accordance with applicable plans and programs of the
Company (the “Standard Benefit”); and

(iv)                              payment
of COBRA premiums for the entire period of eligibility for the Executive’s
eligible dependents and continued participation for one year for each of the
Executive’s dependents in all other employee welfare benefit plans, programs,
and arrangements in which such dependent was participating as of the date of
the Executive’s death, on terms and conditions no less favorable than those
applying on such date.

(b)                                 Termination
Due to Disability.  In the event that
the Executive’s employment hereunder is terminated due to Disability, he shall
be entitled to the following:

(i)                                     continuation
of Base Salary until commencement of long-term disability payments;

(ii)                                  a
Pro-Rata Annual Incentive Award for the year in which his employment
terminates, payable in a lump sum in due course with such payments made to other
executives of the Company following the end of the Company’s fiscal year;

(iii)                               the
Standard Benefit; and

(iv)                              payment
of COBRA premiums for the entire period of eligibility for the Executive and
eligible dependents and participation for one year for the Executive and each
of his dependents in all Company life insurance coverage and in all other
Company employee welfare benefit plans, programs, and arrangements.

No termination of the Executive’s employment for
Disability shall be effective unless the Company first gives 15 days’ written
notice of such termination to the Executive.

(c)                                  Termination
by the Company for Cause.

(i)                                     No
termination of the Executive’s employment hereunder by the Company for Cause
shall be effective unless the provisions of this Section 8(c)(i) shall
have been fully complied with.  Prior to
any termination by the Company for Cause, the Executive shall be given written
notice by the Board of the intention to terminate him, such notice (A) to state
in reasonable detail the circumstances that constitute the grounds on which the
proposed termination for Cause is based and (B) to be given no later than 180
days after the Board first learns of such circumstances.  The Executive shall have 15 days after
receiving such notice in which to cure such grounds, to the extent such cure is
possible.

(ii)                                  In
the event that the Executive’s employment hereunder is terminated by the
Company for Cause in accordance with Section 8(c)(i), he shall be
entitled to the following:

(A)                              payment
of the Base Salary through the Termination Date; and

(B)                                the
Standard Benefit.

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(d)                                 Termination
Without Cause; Constructive Termination of the Executive.  In the event that the Executive’s employment
hereunder is terminated by the Company, other than due to Disability in accordance
with Section 8(b) or for Cause in accordance with Section 8(c)(i),
or in the event of the Executive’s termination of his employment as a result of
a Constructive Termination, the Executive shall be entitled to:

(i)                                     payment
of the Base Salary through the Termination Date;

(ii)                                  the
Standard Benefit; and

(iii)                               upon
execution and delivery of the General Release substantially in the form and
substance as set forth in Exhibit A attached hereto (the “General
Release”) and such General Release having become effective:

(1)                                  a
Pro-Rata Annual Incentive Award for the year in which the Executive was
terminated, which shall be calculated based on the last full year Annual
Incentive Award paid by the Company to the Executive, payable in a lump sum
promptly following the Termination Date;

(2)                                  a
prompt lump-sum severance payment equal to two times the Executive’s annual
Base Salary as of the Termination Date; and

(3)                                  payment
of COBRA premiums for the entire period of eligibility for the Executive and
eligible dependents and continued participation for the Executive and each of
his dependents in all Company life insurance coverage and all other Company
welfare benefit plans, programs, and arrangements until the earlier of (x) one
year from the Termination Date or (y) the date the Executive receives
equivalent coverage and benefits from a subsequent employer.

(e)                                  Voluntary
Termination.  In the event that the
Executive terminates his employment with the Company on his own initiative,
other than by death, for Disability or by a Constructive Termination, he shall
have the same entitlements hereunder as provided in Section 8(c)(ii) in
the case of a termination by the Company for Cause.  A voluntary termination under this Section
8(e) shall be effective upon written notice to the Company and shall not be
deemed a breach of this Agreement.

(f)                                    Benefit
Plans.  In the event that the
Executive, or any of his dependents, is precluded from continuing full
participation in any employee benefit plan, program, or arrangement as provided
in Sections 8(a)(iv), 8(b)(iv), or 8(d)(iii)(3), the
Executive shall be provided with the after-tax economic equivalent of any
benefit or coverage foregone.  For this
purpose, the economic equivalent of any benefit or coverage foregone shall be
deemed to be the total cost to the Executive or any of his dependents of
obtaining such benefit or coverage by himself on an individual basis.  Payment of such after-tax economic equivalent
shall be made quarterly in advance, without discount.

(g)                                 No
Mitigation/Offset.  In the event of
any termination of the Executive’s employment with the Company, the Executive
shall be under no obligation to seek other employment or otherwise mitigate the
obligations of the Company under this Agreement.  The

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Company may
offset against amounts due the Executive under this Agreement on account of
(A) any claim that the Company or any of its shareholders or Affiliates
may have against him or (B) any remuneration or other benefit earned or
received by the Executive after such termination except as specifically
provided in Section 8(d)(iii)(3).

9.                                       Change
of Control.  In the event that a
Change of Control occurs during the Term of Employment, then (i) all Company
stock options and shares of restricted stock issued to the Executive shall thereupon
become fully vested and nonforfeitable; and (ii) the Executive shall have the
continued right to exercise each outstanding vested stock option, including,
without limitation, any portion of the Executive’s stock options vesting prior
to or upon such Change of Control, to the extent permitted by the applicable
plan or, if more favorable to the Executive, grant document.  In the event that holders of Common Stock
receive cash, securities, or other property in respect of their Common Stock in
connection with a Change of Control transaction, the Company shall enable the
Executive (if he so elects) to exercise any stock option at a time and in a
fashion that will entitle him to receive in exchange for any shares thus
acquired, the same consideration as is received in such Change of Control
transaction by other holders of Common Stock.

10.                                 Indemnification.

(a)                                  The
Company agrees that (i) if the Executive is made a party, or is threatened to
be made a party, to any Proceeding by reason of the fact that he is or was a
director, officer, employee, agent, manager, consultant, or representative of
the Company or is or was serving at the request of the Company or any of its
Affiliates as a director, officer, member, employee, agent, manager,
consultant, or representative of another Person or (ii) if any Claim is made,
or threatened to be made, that arises out of or relates to the Executive’s
service in any of the foregoing capacities, then the Executive shall promptly
be indemnified and held harmless by the Company to the fullest extent legally
permitted or authorized by Holdings’ Certificate of Incorporation, Bylaws or
Board resolutions, against any and all costs, expenses, liabilities, and losses
(including, without limitation, attorney’s fees, judgments, interest, expenses
of investigation, penalties, fines, ERISA excise taxes or penalties, and
amounts paid or to be paid in settlement) incurred or suffered by the Executive
in connection therewith, and such indemnification shall continue as to the
Executive even if he has ceased to be a director, member, employee, agent,
manager, consultant or representative of the Company or other Person and shall
inure to the benefit of the Executive’s heirs, executors, and
administrators.  The Company shall
advance to the Executive all costs and expenses incurred by him in connection
with any such Proceeding or Claim within 15 days after receiving written notice
requesting such an advance.  Such notice
shall include an undertaking by the Executive to repay the amount advanced if
he is ultimately determined not to be entitled to indemnification against such
costs and expenses.  For the avoidance of
doubt, notwithstanding anything to the contrary contained herein, the Executive
shall not be entitled to indemnification hereunder if any Proceeding or Claim
is initiated by the Executive without the prior written consent of the Company,
or if the Executive fails timely to notify the Company of his being made (or
being threatened to be made) a party to any such Proceeding contemplated by
this Section 10(a) and the Company is materially prejudiced by the
Executive’s failure to so notify it.

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(b)                                 Neither
the failure of the Company (including the Board, independent legal counsel, or
stockholders) to have made a determination in connection with any request for
indemnification or advancement under Section 10(a) that the Executive
has satisfied any applicable standard of conduct nor a determination by the
Company (including the Board, independent legal counsel, or stockholders) that
the Executive has not met any applicable standard of conduct, shall create a
presumption that the Executive has not met an applicable standard of conduct.

(c)                                  During
the Term of Employment and for a period of six years thereafter, the Company
shall keep in place a directors and officers’ liability insurance policy (or
policies) providing comprehensive coverage to the Executive equal to at least
the greater of (i) $5,000,000 per year and (ii) the coverage that the Company
provides for any other present or former senior executive or director of the
Company.

(d)                                 The
Company shall be entitled to deduct or withhold from any amounts owing from the
Company to the Executive any federal, state, local or foreign withholding
taxes, excise tax, or employment taxes (“Taxes”) imposed with respect to
the Executive’s compensation or other payments from the Company or the
Executive’s ownership interest in the Company (including, without limitation,
wages, bonuses, dividends, the receipt or exercise of equity options and/or the
receipt or vesting of restricted equity). 
In the event the Company elects, at the Executive’s request, to not make
such deductions or withholdings, the Executive shall indemnify the Company for
any amounts paid with respect to any such Taxes, together with any interest,
penalties and related expenses thereto.

11.                                 Assignability;
Binding Nature.

(a)                                  This
Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors, heirs (in the case of the Executive), and assigns.

(b)                                 No
rights or obligations of the Company under this Agreement may be assigned or
transferred by the Company except that such rights or obligations may be
assigned or transferred pursuant to a merger or consolidation in which the
Company is not the continuing entity, or a sale or liquidation of all or
substantially all of the assets and business of the Company; provided,
that the assignee or transferee is the successor to all or substantially all of
the assets and business of the Company and such assignee or transferee assumes
the liabilities, obligations, and duties of the Company, as contained in this
Agreement, either contractually or as a matter of law.  In the event of any sale of assets and
business or liquidation as described in the preceding sentence, the Company
shall use its commercially reasonable efforts to cause such assignee or
transferee to expressly assume the liabilities, obligations and duties of the
Company hereunder.

(c)                                  No
rights or obligations of the Executive under this Agreement may be assigned or
transferred by the Executive other than his rights to compensation and
benefits, which may be transferred only by will or operation of applicable law,
except as provided in Section 18(f).

 11
 

 

12.                                 Representations.

(a)                                  Holdings
and Financial, jointly and severally, represent and warrant that:

(i)                                     Holdings
and Financial are duly authorized to enter into this Agreement and to perform
their respective obligations hereunder and, upon the execution and delivery of
this Agreement by the Parties, this Agreement shall be the valid and binding
obligation of Holdings and Financial, enforceable against Holdings and Financial
in accordance with its terms;

(ii)                                  Holdings
and Financial are corporations, each duly organized, validly existing and in
good standing under the laws of the States of Delaware and Maryland, as
applicable, and each having full corporate power and authority to conduct its
business as such businesses are presently conducted; and

(iii)                               The
execution and delivery by each of Holdings and Financial of this Agreement and
the consummation of the transactions contemplated hereby will not result in the
violation of any law, statute, rule, regulation, order, writ, injunction,
judgment, or decree of any court or governmental authority to or by which
Holdings or Financial is bound, or of any provision of the Certificate of
Incorporation or Bylaws of Holdings or Financial, and will not conflict with,
or result in a breach or violation of, any of the terms or provisions of, or
constitute (with due notice or lapse of time or both) a default under, any
agreement, instrument, or document to which Holdings or Financial is a party or
by which it is bound or to which any of its properties or assets is subject,
nor result in the creation or imposition of any lien upon any of the properties
or assets of Holdings or Financial.

(b)                                 The
Executive hereby acknowledges, represents and warrants to the Company that:

(i)                                     the
execution, delivery and performance of this Agreement by the Executive do not
and shall not conflict with, breach, violate or cause a default under any
contract, agreement, instrument, order, judgment or decree to which the
Executive is a party or by which he is bound;

(ii)                                  the
Executive is not a party to or bound by any undisclosed employment agreement,
non-compete agreement or confidentiality agreement with any other Person;

(iii)                               upon
the execution and delivery of this Agreement by the Company, this Agreement
shall be the valid and binding obligation of the Executive, enforceable in
accordance with its terms; and

(iv)                              the
Executive has had ample opportunity to consult with independent legal counsel
regarding his rights and obligations under this Agreement, has so consulted to
the extent desired by the Executive in his sole discretion, and fully
understands the terns and conditions contained herein.

 12
 

 

13.                                 Covenant
Not to Compete; Confidentiality; Intellectual Property, Inventions and Patents.

(a)                                  Covenant
Not to Compete.

(i)                                     In
further consideration of the compensation to be paid to the Executive
hereunder, the Executive acknowledges that during the course of his employment
with the Company he has and shall become familiar with the Company’s and its
Subsidiaries’ trade secrets and with other Confidential Information concerning
the Company and its Subsidiaries and that his services shall be of special,
unique and extraordinary value to the Company, and therefore, the Executive
agrees that during the Term of Employment and for a period of (1) in the case
of a termination by the Company without Cause or by Executive as a result of a
Constructive Termination, 12 months or (2) in the case of a termination of
employment for any other reason, 18 months thereafter (the “Noncompete
Period”), the Executive shall not directly or indirectly (whether as an
employee, consultant, investor, independent contractor, or director):

(A)                              engage,
enter into or attempt to enter into, or manage, control, participate in,
consult with, render services for, or be employed by, a Restricted Business (as
defined below) that directly or indirectly competes with the Company or any of
its Subsidiaries in the United States or other jurisdictions in which the Company
or any of its Subsidiaries conducts or is developing business or has
demonstrable plans to conduct business; provided, however, that
this clause (A) shall not apply following the expiration of the Term of
Employment as a result of a notice from the Company or the Executive pursuant
to Section 2; provided, further, that nothing herein shall
prohibit the Executive from being a passive owner of not more than five percent
(5%) of the outstanding stock of any class of a corporation that is publicly
traded, so long as the Executive has no active participation in the business of
such corporation; or

(B)                                (i)
induce or attempt to persuade any former or then current employee, agent,
manager, consultant, director, customer, counterparty or other business relationship
of the Company or any of its Subsidiaries to terminate such employment or other
relationship (including, without limitation, by making any negative or
disparaging statements or communications regarding the Company or any of its
Subsidiaries) or (ii) hire any Person who was an employee of the Company or any
of its Subsidiaries within the 12 month period prior to the Termination Date.

(ii)                                  For
the purposes of this Section 13, a “Restricted Business” shall
mean a financial guaranty insurance, specialized surety, credit derivative
and/or structured finance business, whether existing or to be formed and
without regard to its claims-paying ability, or any other business which the
Company or any of its Subsidiaries conducts or is developing or considering for
development during the Term of Employment or on the Termination Date.

(iii)                               The
covenants of the Executive set forth in this Section 13 shall be null
and void and without any force or effect upon the effective date of any
liquidation or dissolution of the Company, it being understood that a merger or
consolidation of the Company shall not be deemed to constitute a liquidation or
dissolution of the Company.

(iv)                              The
covenants set forth above in this Section 13 shall be construed as a
series of separate covenants, one for each county in each of the states of the
United States or

 13
 

 

country
outside the United States to which such restriction applies, subject, however,
to the applicable laws of such jurisdictions.

(v)                                 If,
at the time of enforcement of this Section 13, any arbitrator or court
of competent jurisdiction shall hold that the duration, scope or area
restrictions stated herein are unreasonable under circumstances then existing,
the Parties agree that the maximum duration, scope or area reasonable under such
circumstances shall be substituted for the stated duration, scope or area and
that such arbitrator or court shall be authorized to revise the restrictions
contained herein to cover the maximum period, scope and area permitted by
applicable law.  The Executive
acknowledges that the restrictions contained in this Section 13 are
reasonable and necessary to the protection of legitimate Company interests.

(vi)                              In
the event of the breach or a threatened breach by the Executive of any of the
provisions of this Section 13, the Executive acknowledges and agrees
that the Company would suffer irreparable harm, and thus, in addition and
supplementary to other rights and remedies existing in its favor, the Company
shall be entitled to seek and obtain specific performance and/or injunctive or
other equitable relief in order to enforce or prevent any violations of the
provisions hereof (without posting a bond or other security).  In addition, in the event of a breach or
violation by Executive of this Section 13, the Noncompete Period shall
be automatically extended by the amount of time between the initial occurrence
of the breach or violation and when such breach or violation has been duly
cured.

(b)                                 Confidentiality.

(i)                                     The
Executive acknowledges that he has and will develop and be exposed to
non-public information that is or will be proprietary to the Company and its
Subsidiaries, including, but not limited to, customer lists, marketing plans,
pricing data, product development plans, and other intangible information, and
that the non-public information and data (including trade secrets) obtained by
him while employed by the Company concerning the business or affairs of the
Company and its Subsidiaries (“Confidential Information”) are the
property of the Company and/or one or more of its Subsidiaries.  The Executive agrees to use such information
only in connection with the performances of his duties hereunder, to forever
maintain such information in confidence and not to disclose to any Person or
use for his own purposes any Confidential Information or any confidential or
proprietary information of other Persons in the possession of the Company (“Third
Party Information”) without the prior written consent of the Board, unless
and to the extent that the Confidential Information or Third Party Information
becomes generally known to and available for use by the public or in the
Company’s industry other than, in each case, as a result of the Executive’s
acts or omissions; provided, however that the Executive may
disclose such information when required to by law or subpoena from a court,
government agency or legislative body; provided  further, however,
that the Executive shall immediately notify the Company of his receipt of any
request or demand (whether through legal process or otherwise) that he provide
such disclosure, and thereafter the Executive shall cooperate fully with any
Company efforts to resist, restrict or modify any such request or demand.  The Executive shall deliver to the Company at
the Termination Date, or at any other time the Company may request, all
memoranda, notes, plans, records, reports, computer files, disks and tapes,
printouts and software and other documents and data (and all copies thereof)
embodying or relating to Third Party Information, Confidential Information,

 14
 

 

Work Product
(as defined below) or the business of the Company or any of its Subsidiaries
which he may then possess or have under his control.

(ii)                                  The
Executive shall be prohibited in the course of performing his duties for the
Company from using or disclosing any confidential information or trade secrets
that the Executive may have learned through any prior employment.

(c)                                  Intellectual
Property, Inventions and Patents. 
The Executive acknowledges that all discoveries, concepts, ideas, inventions,
innovations, improvements, developments, methods, designs, analyses, drawings,
reports, patent applications, copyrightable work and mask work (whether or not
including any confidential information) and all registrations or applications
related thereto, all other proprietary information and all similar or related
information (whether or not patentable) which relate to the Company’s or any of
its Subsidiaries’ actual or anticipated business, research and development or
existing or future products or services and which are conceived, developed or
made by the Executive (whether alone or jointly with others) while employed by
the Company, whether before or after the date of this Agreement (“Work
Product”), belong to the Company and/or one or more of its Subsidiaries.  The Executive shall promptly disclose such
Work Product to the Board and, at the Company’s expense, perform all actions
reasonably requested by the Board (whether during or after the Term of
Employment) to establish and confirm such ownership (including, without
limitation, assignments, consents, powers of attorney and other
instruments).  The Executive acknowledges
that all Work Product shall be deemed to constitute “works made for hire” under
the U.S. Copyright Act of 1976, as amended.

14.                                 Executive’s
Cooperation.  During the Term of
Employment and thereafter, the Executive shall cooperate with the Company in
any internal investigation, any administrative, regulatory or judicial
proceeding or any dispute with a third party as reasonably requested by the
Company (including, without limitation, the Executive being available to the
Company upon reasonable notice for interviews and factual investigations,
appearing at the Company’s request to give testimony without requiring service
of a subpoena or other legal process, volunteering to the Company all pertinent
information and turning over to the Company all relevant documents which are or
may come into the Executive’s possession, all at times and on schedules that
are reasonably consistent with Executive’s other permitted activities and
commitments).  In the event the Company
requires the Executive’s cooperation in accordance with this Section 14,
the Company shall reimburse the Executive solely for reasonable travel expenses
(including lodging and meals) upon submission of receipts.  Notwithstanding anything to the contrary
contained herein, upon termination of the Term of Employment hereunder, the
Executive shall, if applicable, automatically be deemed to have resigned as a
director of the Board and of any board of directors (or similar governing body)
of any Subsidiary of the Company.

15.                                 Resolution
of Disputes.  Except as specifically
contemplated in this Agreement, any Claim arising out of or relating to this
Agreement, the Executive’s employment with the Company, or the termination of
such employment shall be resolved by binding confidential arbitration, to be
held in New York, New York, in accordance with the Commercial Arbitration Rules
of the American Arbitration Association. 
Judgment upon the award rendered by the arbitrator may be entered by any
Party in any court having jurisdiction thereof. 
During the resolution of any dispute under this Section 15, each
Party shall bear the cost of its own

 15
 

 

attorneys’ fees and expenses.  If the Executive prevails in the arbitration,
then the Company shall promptly pay all reasonable costs and expenses,
including, without limitation, reasonable attorneys’ fees, incurred by the
Executive or his beneficiaries in resolving any such Claim.  If the Company prevails in the arbitration,
then the arbitrator shall determine the allocation of the costs and expenses of
the arbitration, including the arbitrator’s fee and both Parties’ attorneys’
fees and expenses, based upon the extent to which each Party prevailed in the
arbitration.  In the event that any
relief which is awarded is non-monetary, then such costs and expenses shall be
allocated in any manner as may be determined by the arbitrator.

16.                                 Notices.  Any notice, consent, demand, request, or
other communication given to a Person in connection with this Agreement shall
be in writing and shall be deemed to have been given to such Person (a) when
delivered personally to such Person, or (b) provided that a written
acknowledgment of receipt is obtained, two days after being sent by prepaid
certified or registered mail, or by a nationally recognized overnight courier,
to the address specified below for such Person (or to such other address as
such Person shall have specified by 10 days’ advance notice given in accordance
with this Section 16), or (c) in the case of the Company only, on the
first business day after it is sent by facsimile to the facsimile number set
forth for the Company (or to such other facsimile number as the Company shall
have specified by 10 days’ advance notice given in accordance with this Section
16), with a confirmatory copy sent by certified or registered mail or by
overnight courier to the Company in accordance with this Section 16.

If to the Company, to:

ACA Financial Guaranty Corporation

140 Broadway

New York, NY 10005

Attention: General Counsel

Telephone: (212) 375-2000

Facsimile: (212) 375-2100

If to the Executive, to:

The Executive’s principal residence as shown in the
records of the Company,

with a copy to:

the Executive at the Company’s address.

If to a beneficiary of the Executive, to:

The address most recently specified by the Executive
or beneficiary through notice given in accordance with this Section 16.

17.                                 Guarantee
of Obligations.  Holdings is a
beneficiary of the services provided by Executive and hereby irrevocably and
unconditionally guarantee the performance of all obligations of Financial
hereunder.

 16
 

 

18.                                 Insurance.  The Company may, at its discretion, apply for
and procure in its own name and for its own benefit life and/or disability
insurance on the Executive in any amount or amounts considered advisable.  The Executive agrees to cooperate in any
medical or other examination, supply any information and execute and deliver
any applications or other instruments in writing as may be reasonably necessary
to obtain and constitute such insurance.

19.                                 Miscellaneous.

(a)                                  Entire
Agreement.  This Agreement, including
Exhibit A hereto, represents the entire understanding and agreement
between the Parties concerning the subject matter hereof and, as of the
Effective Date, supersedes and terminates all prior agreements, understandings,
discussions, negotiations, and undertakings, whether written or oral, between
the Parties with respect thereto, including, but not limited to, the Former Employment
Agreement and all predecessor agreements.

(b)                                 Severability.  In the event that any provision or portion of
this Agreement shall be determined to be invalid or unenforceable for any
reason, in whole or in part, the remaining provisions of this Agreement shall
be unaffected thereby and shall remain in full force and effect to the fullest
extent permitted by law so as to achieve the purposes of this Agreement.

(c)                                  Amendment
or Waiver.  No provision in this
Agreement may be amended unless such amendment is set forth in a writing signed
by the Parties.  No waiver by either
Party of any breach of any condition or provision contained in this Agreement
shall be deemed a waiver of any similar or dissimilar condition or provision at
the same or any prior or subsequent time. 
To be effective, any waiver must be set forth in a writing signed by the
waiving Party.

(d)                                 Headings.  The headings of the Sections contained in
this Agreement are for convenience only and shall not be deemed to control or
affect the meaning or construction of any provision of this Agreement.

(e)                                  Beneficiaries/References.  The Executive shall be entitled, to the
extent permitted under any applicable law, to select and change a beneficiary
or beneficiaries to receive any compensation or benefit hereunder following the
Executive’s death by giving the Company written notice thereof.  In the event of the Executive’s death or a
judicial determination of his incompetence, reference in this Agreement to the
Executive shall be deemed, where appropriate, to refer to his beneficiary,
estate, or other legal representative.

(f)                                    Survivorship.  Except as otherwise set forth in this
Agreement, the respective rights and obligations of the Parties hereunder shall
survive the Termination Date.

(g)                                 Governing
Law/Jurisdiction.  This Agreement
shall be governed, construed, performed, and enforced in accordance with the
laws of the State of New York, without giving effect to any choice of law or
conflict of law rules or provisions (whether of the State of New York or any
other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of New York. 
In furtherance of the foregoing, the internal law of the State of New
York shall control the interpretation and construction of this Agreement (and
all exhibits hereto), even though under that jurisdiction’s choice of law or
conflict of law analysis, the substantive law of some other jurisdiction would
ordinarily apply.

 17
 

 

(h)                                 Counterparts.  This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which, when
taken together, shall constitute one and the same instrument.

(i)                                     No
Strict Construction.  The language
used in this Agreement shall be deemed to be the language chosen by the Parties
to express their mutual intent, and no rule of strict construction shall be
applied against any Party.

(j)                                     Consent
to Jurisdiction.  EACH OF THE PARTIES
IRREVOCABLY SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES
DISTRICT COURT LOCATED IN NEW YORK CITY, NEW YORK, FOR THE PURPOSES OF ANY
SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY OR THEREBY.  EACH OF THE PARTIES FURTHER AGREES THAT
SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY U.S.  REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE
ADDRESS SET FORTH ABOVE SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY ACTION,
SUIT OR PROCEEDING IN THE STATE OF NEW YORK WITH RESPECT TO ANY MATTERS TO
WHICH IT HAS SUBMITTED TO JURISDICTION IN THIS PARAGRAPH l8(L).  EACH OF THE PARTIES IRREVOCABLY AND
UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF ANY ACTION, SUIT
OR PROCEEDING ARISING OUT OF THIS AGREEMENT, ANY RELATED DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY IN ANY UNITED STATES DISTRICT
COURT LOCATED IN NEW YORK CITY, NEW YORK, AND HEREBY AND THEREBY FURTHER
IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY
SUCH COURT THAT ANY SUCH ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

(k)                                  Waiver
of Jury Trial.  AS A SPECIFICALLY
BARGAINED FOR INDUCEMENT FOR EACH OF THE PARTIES TO ENTER INTO THIS AGREEMENT,
EACH PARTY EXPRESSLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY LAWSUIT OR
PROCEEDING RELATING TO OR ARISING IN ANY WAY FROM THIS AGREEMENT OR THE MATTERS
CONTEMPLATED HEREBY.

 18
 

 

SIGNATURE
PAGE TO

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

IN WITNESS WHEREOF, the undersigned have executed this
Agreement as of the date first set forth above.

	
  

  	
  By:

  	
   /s/ Nora J.
  Dahlman

  	
   

  
	
   

  	
   

  	
  Name: Nora J.
  Dahlman

  
	
   

  	
   

  	
  Title: General Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
  ACA FINANCIAL
  GUARANTY

  
	
   

  	
  CORPORATION

  
	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Nora J.
  Dahlman

  	
   

  
	
   

  	
   

  	
  Name: Nora J.
  Dahlman

  
	
   

  	
   

  	
  Title: General Counsel and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
    /s/
  Edward U. Gilpin

  	
   

  
	
   

  	
   

  	
  EDWARD U. GILPIN

  
							

 

 19
 

 

Exhibit A

GENERAL RELEASE

I, EDWARD U. GILPIN, in consideration of and
subject  to the performance by ACA CAPITAL HOLDINGS, INC., a Delaware
corporation (“Holdings”), ACA FINANCIAL GUARANTY CORPORATION, a Maryland
corporation (“Financial,” and, together with Holdings and each of their
respective subsidiaries, the “Company”), of their respective obligations
under the Amended and Restated Employment Agreement, dated as of September 30,
2004 (the “Agreement”), do hereby release and forever discharge as of
the date hereof the Company and its affiliates and all present and former
directors, officers, employees, agents, representatives, attorneys, successors
and assigns of the Company and its affiliates and the Company’s direct or
indirect owners (collectively, the “Released Parties”) to the extent
provided below.

1.                                       I
understand that any payments or benefits paid or granted to me under Section
8(d)(iii) of the Agreement represent, in part, consideration for signing this
General Release and are not salary, wages or benefits to which I was already
entitled.  I understand and agree that I
will not receive the payments and benefits specified in Section 8(d)(iii) of
the Agreement unless I execute and effectuate this General Release.  Such payments and benefits will not be
considered compensation for purposes of any employee benefit plan, program,
policy or arrangement maintained or hereafter established by the Company or its
affiliates.  I also acknowledge and
represent that I have received all payments and benefits that I am entitled to
receive (as of the date hereof) by virtue of any employment by the Company.

2.                                       Except
with respect to obligations to me under my Employment Agreement that expressly
survive the termination of my employment with the Company, I knowingly and
voluntarily (for myself, my heirs, executors, administrators and assigns)
release and forever discharge the Company and the other Released Parties from
any and all claims, suits, controversies, actions, causes of action,
cross-claims, counter-claims, demands, debts, compensatory damages, liquidated
damages, punitive or exemplary damages, other damages, claims for costs and
attorneys’ fees, or liabilities of any nature whatsoever, in law and in equity,
both past and present (through the date this General Release becomes effective
and enforceable) and whether known or unknown, suspected, or claimed, against
the Company or any of the Released Parties which I, my spouse, or any of my heirs,
executors, administrators or assigns, may have, which arise out of or are
connected with my employment with, or my separation or termination from, the
Company (including, but not limited to, any allegation, claim or violation
arising under: Title VII of the Civil Rights Act of 1964, as amended; the Civil
Rights Act of 1991; the Age Discrimination in Employment Act of 1967, as
amended (including the Older Workers Benefit Protection Act); the Equal Pay Act
of 1963, as amended; the Americans with Disabilities Act of 1990; the Family
and Medical Leave Act of 1993; the Worker Adjustment Retraining and
Notification Act; the Employee Retirement Income Security Act of 1974; any
applicable Executive Order Programs; the Fair Labor Standards Act; or their
state or local counterparts; or under any other federal, state or local civil
or human rights law, or under any other local, state, or federal law,
regulation or ordinance; or

 20
 

 

under any public policy,
contract or tort, or under common law; or arising under any policies, practices
or procedures of the Company; or any claim for wrongful discharge, breach of
contract, infliction of emotional distress, defamation; or any claim for costs,
fees, or other expenses, including attorneys’ fees incurred in these matters) (collectively,
the “Claims”).

3.                                       I
represent that I have made no assignment or transfer of any right, claim,
demand, cause of action, or other matter covered by Section 2 above.

4.                                       In
signing this General Release, I acknowledge and intend that it shall be effective
as a bar to each and every one of the Claims hereinabove mentioned or
implied.  I expressly consent that this
General Release shall be given full force and effect according to each and all
of its express terms and provisions, including those relating to unknown and
unsuspected Claims (notwithstanding any state statute that expressly limits the
effectiveness of a general release of unknown, unsuspected and unanticipated
Claims), if any, as well as those relating to any other Claims hereinabove mentioned
or implied.  I acknowledge and agree that
this waiver is an essential and material term of this General Release and that
without such waiver the Company would not have agreed to the terms of the
Agreement.  I further agree that in the
event I should bring a Claim seeking damages against the Company, or in the
event I should seek to recover against the Company in any Claim brought by a
governmental agency on my behalf, this General Release shall serve as a
complete defense to such Claims as to my rights and entitlements.  I further agree that I am not aware of any
pending charge or complaint of the type described in Section 2 as of the
execution of this General Release.

5.                                       I
agree that neither this General Release, nor the furnishing of the
consideration for this General Release, shall be deemed or construed at any
time to be an admission by the Company, any Released Party or myself of any
improper or unlawful conduct.

6.                                       I
agree that I will (i) forfeit all amounts payable by the Company pursuant to
the Agreement and (ii) to the maximum extent permitted by applicable law,
immediately return to the Company all amounts paid by the Company pursuant to
Section 8(d)(iii), in each case, if I challenge the validity of this General
Release.  I also agree that if I violate
this General Release by suing the Company or the other Released Parties, I will
pay all costs and expenses of defending against the suit incurred by the
Released Parties, including reasonable attorneys’ fees, and return all payments
received by me pursuant to the Agreement.

7.                                       I
agree that this General Release is confidential and agree not to disclose any
information regarding the terms of this General Release, except to my immediate
family and any tax, legal or other counsel I have consulted regarding the
meaning or effect hereof or as required by law, and I will instruct each of the
foregoing not to disclose the same to anyone.

8.                                       Any
non-disclosure provision in this General Release does not prohibit or restrict
me (or my attorney) from responding to any inquiry about this General Release
or its underlying facts and circumstances by the Securities and Exchange
Commission (SEC), the National

 21
 

 

Association of Securities
Dealers, Inc.  (NASD), any other
self-regulatory organization or governmental entity.

9.                                       I
agree to reasonably cooperate with the Company in any internal investigation,
any administrative, regulatory, or judicial proceeding or any dispute with a
third party.  I understand and agree that
my cooperation may include, but not be limited to, making myself available to
the Company upon reasonable notice for interviews and factual investigations;
appearing at the Company’s request to give testimony without requiring service
of a subpoena or other legal process; volunteering to the Company pertinent
information; and turning over to the Company all relevant documents which are
or may come into my possession all at times and on schedules that are
reasonably consistent with my other permitted activities and commitments.  I understand that in the event the Company
asks for my cooperation in accordance with this provision, the Company will
reimburse me solely for reasonable travel expenses, (including lodging and
meals), upon my submission of receipts.

10.                                 I
agree not to disparage the Company, its past and present investors, officers,
directors or employees or its affiliates and to keep all confidential and
proprietary information about the past or present business affairs of the
Company and its affiliates confidential unless a prior written release from the
Company is obtained.  I further represent
that as of the date hereof, I have returned to the Company any and all
property, tangible or intangible, relating to its business, which I possessed
or had control over at any time (including, but not limited to,
company-provided credit cards, building or office access cards, keys, computer
equipment, manuals, files, documents, records, software, customer data base and
other data) and that I have not retained any copies, compilations, extracts,
excerpts, summaries or other notes of any such manuals, files, documents,
records, software, customer data base or other data.

11.                                 Notwithstanding
anything in this General Release to the contrary, this General Release shall
not relinquish, diminish, or in any way affect any rights or claims arising out
of any breach by the Company or by any Released Party of the Agreement after
the date hereof.

12.                                 Whenever
possible, each provision of this General Release shall be interpreted in, such
manner as to be effective and valid under applicable law, but if any provision
of this General Release is held to be invalid, illegal or unenforceable in any
respect under any applicable law or rule in any jurisdiction, such invalidity,
illegality or unenforceability shall not affect any other provision or any
other jurisdiction, but this General Release shall be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provision had never been contained herein.

BY SIGNING THIS GENERAL RELEASE, I REPRESENT AND AGREE THAT:

1.                                       I
HAVE READ IT CAREFULLY;

2.                                       I
UNDERSTAND ALL OF ITS TERMS AND KNOW THAT I AM GIVING UP IMPORTANT RIGHTS,
INCLUDING BUT NOT LIMITED TO, RIGHTS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT
ACT OF 1967, AS AMENDED;

 22
 

 

3.                                       I
VOLUNTARILY CONSENT TO EVERYTHING IN IT;

4.                                       I
HAVE BEEN ADVISED TO CONSULT WITH AN ATTORNEY BEFORE EXECUTING IT, I HAVE HAD
THE OPPORTUNITY TO SO CONSULT, AND HAVE AVAILED MYSELF OF SUCH ADVICE TO THE
EXTENT I HAVE DEEMED NECESSARY TO MAKE A VOLUNTARY AND INFORMED CHOICE TO
EXECUTE THIS AGREEMENT;

5.                                       I
HAVE HAD AT LEAST [21][/][45] DAYS FROM THE DATE OF MY RECEIPT OF THIS RELEASE
SUBSTANTIALLY IN ITS FINAL FORM ON           
          , 20    ,
TO CONSIDER IT AND THE CHANGES MADE SINCE THE           
          , 20    
VERSION OF THIS RELEASE ARE NOT MATERIAL AND WILL NOT RESTART ANY REQUIRED
CONSIDERATION PERIOD; [This section is only
required if the Executive is over the age of 40.  The 45 day period is required if at least one
other person is being terminated at the same time for the same reason, i.e., a
reduction in force.]

6.                                       I
UNDERSTAND THAT I HAVE SEVEN DAYS AFTER THE EXECUTION OF THIS RELEASE TO REVOKE
IT, SUCH REVOCATION TO BE RECEIVED IN WRITING BY THE COMPANY BY THE END OF THE
SEVENTH DAY AFTER THE DATE HEREOF, AND THAT THIS RELEASE SHALL NOT BECOME
EFFECTIVE OR ENFORCEABLE UNTIL THE REVOCATION PERIOD HAS EXPIRED; [This section is only required if the Executive is over the age of 40.]

7.                                       I
HAVE SIGNED THIS GENERAL RELEASE KNOWINGLY AND VOLUNTARILY AND WITH THE ADVICE
OF ANY COUNSEL RETAINED TO ADVISE ME WITH RESPECT TO IT; AND

8.                                       I
AGREE THAT THE PROVISIONS OF THIS GENERAL RELEASE MAY NOT BE AMENDED, WAIVED,
CHANGED OR MODIFIED EXCEPT BY AN INSTRUMENT IN WRITING SIGNED BY AN AUTHORIZED
REPRESENTATIVE OF THE COMPANY AND BY ME.

	
  NAME:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  

 

 23Exhibit 10.7

 

 

OFFICE BUILDING LEASE

Between

140 BW LLC, Landlord

And

ACA FINANCIAL GUARANTY
CORPORATION, Tenant

Premises:

The Entire 47th Floor and the
Entire 48th Floor

140 Broadway 

New York, New York

 

 

 

	
  Index of Defined Terms

  	
   

  	
  iv

  

 

	
  ARTICLE 1

  
	
   

  
	
  DEFINITIONS,
  DEMISE, PREMISES, TERM, RENT

  
	
   

  
	
  Section 1.01

  	
   

  	
  Definitions

  	
   

  	
  1

  
	
  Section 1.02

  	
   

  	
  Demise

  	
   

  	
  3

  
	
  Section 1.03

  	
   

  	
  Commencement Date; Certain Obligations Effective Prior
  to the Commencement Date

  	
   

  	
  3

  
	
  Section 1.04

  	
   

  	
  Base Rent

  	
   

  	
  3

  
	
  Section 1.05

  	
   

  	
  Additional Rent

  	
   

  	
  3

  
	
  Section 1.06

  	
   

  	
  Use

  	
   

  	
  4

  
	
  Section 1.07

  	
   

  	
  Abatement of Base Rent

  	
   

  	
  4

  
	
  Section 1.08

  	
   

  	
  Existing Lease

  	
   

  	
  4

  
	
  Section 1.09

  	
   

  	
  Recognition of ACA Sublease

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  2

  
	
   

  
	
  CONDITION
  OF THE PREMISES; ALTERATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 2.01

  	
   

  	
  Condition of the Premises; Tenant’s Initial
  Alteration

  	
   

  	
  6

  
	
  Section 2.02

  	
   

  	
  Alterations

  	
   

  	
  7

  
	
  Section 2.03

  	
   

  	
  Tenant’s Property and Landlord’s Property

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  3

  
	
   

  
	
  ESCALATIONS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 3.01

  	
   

  	
  Escalation Definitions

  	
   

  	
  11

  
	
  Section 3.02

  	
   

  	
  Tenant’s Tax Payment

  	
   

  	
  15

  
	
  Section 3.03

  	
   

  	
  Tenant’s Operating Expense Payment

  	
   

  	
  16

  
	
  Section 3.04

  	
   

  	
  Refunds, Credits, Adjustments

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  4

  
	
   

  
	
  TENANT’S
  COVENANTS AND RIGHTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 4.01

  	
   

  	
  Assignment and Subletting

  	
   

  	
  18

  
	
  Section 4.02

  	
   

  	
  Care of Premises; Repairs

  	
   

  	
  24

  
	
  Section 4.03

  	
   

  	
  Compliance with Law

  	
   

  	
  25

  
	
  Section 4.04

  	
   

  	
  Tenant’s Insurance

  	
   

  	
  25

  
	
  Section 4.05

  	
   

  	
  Tenant’s Indemnification

  	
   

  	
  26

  
	
  Section 4.06

  	
   

  	
  Electricity

  	
   

  	
  27

  
	
  Section 4.07

  	
   

  	
  Personal Property Taxes

  	
   

  	
  28

  
	
  Section 4.08

  	
   

  	
  Signs

  	
   

  	
  28

  
	
  Section 4.09

  	
   

  	
  Surrender

  	
   

  	
  29

  
	
  Section 4.10

  	
   

  	
  Telephone Service

  	
   

  	
  29

  

 i
 

 

 

	
  Section 4.11

  	
   

  	
  Partnership or Limited Liability Company Tenant

  	
   

  	
  29

  
	
  Section 4.12

  	
   

  	
  Sprinklers

  	
   

  	
  30

  
	
  Section 4.13

  	
   

  	
  Window Cleaning

  	
   

  	
  30

  
	
  Section 4.14

  	
   

  	
  Tenant’s Option to Extend

  	
   

  	
  30

  
	
  Section 4.15

  	
   

  	
  Tenant’s Right of First Offer

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  5

  
	
   

  
	
  LANDLORD’S
  COVENANTS AND RIGHTS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 5.01

  	
   

  	
  Quiet Enjoyment and Subordination

  	
   

  	
  33

  
	
  Section 5.02

  	
   

  	
  Landlord’s Services and Repair Obligations

  	
   

  	
  34

  
	
  Section 5.03

  	
   

  	
  Alterations by Landlord

  	
   

  	
  37

  
	
  Section 5.04

  	
   

  	
  Entry by Landlord

  	
   

  	
  37

  
	
  Section 5.05

  	
   

  	
  Minimize Interference

  	
   

  	
  37

  
	
  Section 5.06

  	
   

  	
  Landlord’s Right to Cure

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  6

  
	
   

  
	
  EMINENT
  DOMAIN, CASUALTY, HAZARDOUS MATERIALS

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 6.01

  	
   

  	
  Eminent Domain

  	
   

  	
  38

  
	
  Section 6.02

  	
   

  	
  Damage by Fire or Other Casualty

  	
   

  	
  39

  
	
  Section 6.03

  	
   

  	
  Subrogation

  	
   

  	
  40

  
	
  Section 6.04

  	
   

  	
  Hazardous Materials

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  7

  
	
   

  
	
  EVENTS
  OF DEFAULT, REMEDIES

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 7.01

  	
   

  	
  Events of Default

  	
   

  	
  41

  
	
  Section 7.02

  	
   

  	
  Remedies upon Default

  	
   

  	
  42

  
	
  Section 7.03

  	
   

  	
  Bankruptcy

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  8

  
	
   

  
	
  SECURITY
  DEPOSIT

  
	
   

  
	
  Section 8.01

  	
   

  	
  Security Deposit

  	
   

  	
  44

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  9

  
	
   

  
	
  MISCELLANEOUS
  PROVISIONS

  
	
   

  
	
  Section 9.01

  	
   

  	
  Administrative Service Charges

  	
   

  	
  46

  
	
  Section 9.02

  	
   

  	
  Late Charges

  	
   

  	
  46

  
	
  Section 9.03

  	
   

  	
  Holding Over

  	
   

  	
  46

  
	
  Section 9.04

  	
   

  	
  Notices

  	
   

  	
  47

  
	
  Section 9.05

  	
   

  	
  Authority of Tenant

  	
   

  	
  47

  

 ii
 

 

 

	
  Section 9.06

  	
   

  	
  Financial Statements

  	
   

  	
  47

  
	
  Section 9.07

  	
   

  	
  Authorities for Action

  	
   

  	
  47

  
	
  Section 9.08

  	
   

  	
  Brokerage

  	
   

  	
  47

  
	
  Section 9.09

  	
   

  	
  Definition of Landlord

  	
   

  	
  48

  
	
  Section 9.10

  	
   

  	
  Entire Agreement

  	
   

  	
  48

  
	
  Section 9.11

  	
   

  	
  Force Majeure

  	
   

  	
  48

  
	
  Section 9.12

  	
   

  	
  Severability

  	
   

  	
  48

  
	
  Section 9.13

  	
   

  	
  No Setoff

  	
   

  	
  48

  
	
  Section 9.14

  	
   

  	
  Relationship of Parties

  	
   

  	
  48

  
	
  Section 9.15

  	
   

  	
  Name of Building

  	
   

  	
  49

  
	
  Section 9.16

  	
   

  	
  Successors Bound

  	
   

  	
  49

  
	
  Section 9.17

  	
   

  	
  Interpretation

  	
   

  	
  49

  
	
  Section 9.18

  	
   

  	
  Joint and Several Obligation

  	
   

  	
  49

  
	
  Section 9.19

  	
   

  	
  Limitation of Landlord Liability

  	
   

  	
  49

  
	
  Section 9.20

  	
   

  	
  Short Form Lease

  	
   

  	
  50

  
	
  Section 9.21

  	
   

  	
  Assignment of Rents, Leases

  	
   

  	
  50

  
	
  Section 9.22

  	
   

  	
  Rules and Regulations

  	
   

  	
  50

  
	
  Section 9.23

  	
   

  	
  Estoppel Certificate

  	
   

  	
  51

  
	
  Section 9.24

  	
   

  	
  Obstruction of Light or View

  	
   

  	
  51

  
	
  Section 9.25

  	
   

  	
  Attorneys’ Fees

  	
   

  	
  51

  
	
  Section 9.26

  	
   

  	
  Landlord’s Failure to Consent

  	
   

  	
  51

  
	
  Section 9.27

  	
   

  	
  No Waiver

  	
   

  	
  51

  
	
  Section 9.28

  	
   

  	
  Vault Space

  	
   

  	
  52

  
	
  Section 9.29

  	
   

  	
  Adjacent Excavation; Shoring

  	
   

  	
  52

  
	
  Section 9.30

  	
   

  	
  Directory Listings

  	
   

  	
  52

  
	
  Section 9.31

  	
   

  	
  Government Rent Restrictions

  	
   

  	
  52

  
	
  Section 9.32

  	
   

  	
  [Intentionally Deleted]

  	
   

  	
  53

  
	
  Section 9.33

  	
   

  	
  Zoning; Development Rights

  	
   

  	
  53

  
	
  Section 9.34

  	
   

  	
  Jury Trial and Counterclaim Waiver

  	
   

  	
  53

  

 

EXHIBITS

	
  Exhibit A-l:

  	
   

  	
  Floor Plan of Existing Premises

  
	
  Exhibit A-2:

  	
   

  	
  Floor Plans of Additional Premises

  
	
  Exhibit B:

  	
   

  	
  [Intentionally Deleted]

  
	
  Exhibit C:

  	
   

  	
  Form of Letter of Credit

  
	
  Exhibit D:

  	
   

  	
  [Intentionally Deleted]

  
	
  Exhibit E:

  	
   

  	
  Rules and Regulations

  
	
  Exhibit F:

  	
   

  	
  Requirements for Certificates of Final Approval

  
	
  Exhibit G:

  	
   

  	
  Tenant Alteration Work and New Construction
  Conditions and Requirements

  
	
  Exhibit H:

  	
   

  	
  List of Approved Contractors and Sub-Contractors

  
	
  Exhibit I:

  	
   

  	
  Form of Subordination Non-disturbance and Attornment
  Agreement

  
	
  Exhibit J:

  	
   

  	
  Building HVAC Specifications

  
	
  Exhibit K:

  	
   

  	
  Building Cleaning Specifications

  

 

 iii
 

 

INDEX OF DEFINED TERMS

	
  TERM

  	
   

  	
  SECTION

  
	
   

  	
   

  	
   

  
	
  ADA

  	
   

  	
  4.04

  
	
   

  	
   

  	
   

  
	
  Additional Rent

  	
   

  	
  1.05

  
	
   

  	
   

  	
   

  
	
  Aggregate Gross Rent

  	
   

  	
  7.02(C)(l)

  
	
   

  	
   

  	
   

  
	
  Alteration

  	
   

  	
  2.02(A)

  
	
   

  	
   

  	
   

  
	
  Base Operating Amount

  	
   

  	
  3.01(A)

  
	
   

  	
   

  	
   

  
	
  Base Operating Year

  	
   

  	
  1.01(A)

  
	
   

  	
   

  	
   

  
	
  Base Rent

  	
   

  	
  1.01(B)

  
	
   

  	
   

  	
   

  
	
  Base Tax Amount

  	
   

  	
  3.01(C)

  
	
   

  	
   

  	
   

  
	
  Base Tax Year

  	
   

  	
  1.01(C)

  
	
   

  	
   

  	
   

  
	
  Broker

  	
   

  	
  1.01(D)

  
	
   

  	
   

  	
   

  
	
  Building

  	
   

  	
  1.01(E)

  
	
   

  	
   

  	
   

  
	
  Code

  	
   

  	
  7.01(A)(3)

  
	
   

  	
   

  	
   

  
	
  Commencement Date

  	
   

  	
  1.01(F)

  
	
   

  	
   

  	
   

  
	
  Date of Such Taking

  	
   

  	
  6.01(A)

  
	
   

  	
   

  	
   

  
	
  Easement

  	
   

  	
  5.01(B)

  
	
   

  	
   

  	
   

  
	
  Environmental Claims

  	
   

  	
  6.04(D)

  
	
   

  	
   

  	
   

  
	
  Environmental Law

  	
   

  	
  6.04(D)

  
	
   

  	
   

  	
   

  
	
  Environmental Permits

  	
   

  	
  6.04(D)

  
	
   

  	
   

  	
   

  
	
  Event of Default

  	
   

  	
  7.01(A)

  
	
   

  	
   

  	
   

  
	
  Expiration Date

  	
   

  	
  1.01(H)

  
	
   

  	
   

  	
   

  
	
  Guarantor

  	
   

  	
  7.01(A)(3)

  
	
   

  	
   

  	
   

  
	
  Hazardous Materials

  	
   

  	
  6.04(D)

  
	
   

  	
   

  	
   

  
	
  Indemnitees

  	
   

  	
  4.05(A)

  
	
   

  	
   

  	
   

  
	
  Interest

  	
   

  	
  3.01(I)

  
	
   

  	
   

  	
   

  
	
  Interim Electric Charge

  	
   

  	
  4.06(G)

  
	
   

  	
   

  	
   

  
	
  Landlord

  	
   

  	
  Preface, 9.09

  
	
   

  	
   

  	
   

  
	
  Landlord’s Consultant

  	
   

  	
  2.02(B)

  
	
   

  	
   

  	
   

  
	
  Landlord’s Contribution

  	
   

  	
  2.01

  
	
   

  	
   

  	
   

  
	
  Landlord’s Notice Address

  	
   

  	
  1.01(J)

  
	
   

  	
   

  	
   

  

 

 iv
 

 

 

	
  TERM

  	
   

  	
  SECTION

  
	
   

  	
   

  	
   

  
	
  Landlord’s Operating Statement

  	
   

  	
  3.01(E)

  
	
   

  	
   

  	
   

  
	
  Landlord’s Tax Statement

  	
   

  	
  3.01(F)

  
	
   

  	
   

  	
   

  
	
  Lease

  	
   

  	
  Preface

  
	
   

  	
   

  	
   

  
	
  Letter of Credit

  	
   

  	
  8.01(B)

  
	
   

  	
   

  	
   

  
	
  Mortgage

  	
   

  	
  5.01(B)

  
	
   

  	
   

  	
   

  
	
  Notice

  	
   

  	
  9.04(A)

  
	
   

  	
   

  	
   

  
	
  Office Building

  	
   

  	
  1.01(K)

  
	
   

  	
   

  	
   

  
	
  Operating Expenses

  	
   

  	
  3.01(G)

  
	
   

  	
   

  	
   

  
	
  Operating Expense Payment

  	
   

  	
  3.03(A)

  
	
   

  	
   

  	
   

  
	
  Operating Year

  	
   

  	
  3.01(H)

  
	
   

  	
   

  	
   

  
	
  Partnership Tenant

  	
   

  	
  4.13

  
	
   

  	
   

  	
   

  
	
  Permitted Uses

  	
   

  	
  1.01(L)

  
	
   

  	
   

  	
   

  
	
  Premises

  	
   

  	
  1.01(M)

  
	
   

  	
   

  	
   

  
	
  Property

  	
   

  	
  1.01(N)

  
	
   

  	
   

  	
   

  
	
  Reletting Costs

  	
   

  	
  7.02(C)(l)

  
	
   

  	
   

  	
   

  
	
  Rent Payment Address

  	
   

  	
  1.01(O)

  
	
   

  	
   

  	
   

  
	
  Required Capital Improvement Amount

  	
   

  	
  3.01(I)

  
	
   

  	
   

  	
   

  
	
  Rules and Regulations

  	
   

  	
  9.22, Exhibit E

  
	
   

  	
   

  	
   

  
	
  Security Deposit

  	
   

  	
  1.01(P)

  
	
   

  	
   

  	
   

  
	
  Superior Lease

  	
   

  	
  5.01(B)

  
	
   

  	
   

  	
   

  
	
  Tax Payment

  	
   

  	
  3.02(A)

  
	
   

  	
   

  	
   

  
	
  Tax Year

  	
   

  	
  3.01(K)

  
	
   

  	
   

  	
   

  
	
  Taxes

  	
   

  	
  3.01(J)

  
	
   

  	
   

  	
   

  
	
  Tenant

  	
   

  	
  Preface

  
	
   

  	
   

  	
   

  
	
  Tenant’s Notice Address

  	
   

  	
  1.01(R)

  
	
   

  	
   

  	
   

  
	
  Tenant’s Property

  	
   

  	
  2.03(A)

  
	
   

  	
   

  	
   

  
	
  Tenant’s Proportionate Share

  	
   

  	
  1.01(S)

  
	
   

  	
   

  	
   

  
	
  Term

  	
   

  	
  1.01(T)

  

 

 v

 

OFFICE BUILDING
LEASE

140 Broadway

New York, New York

THIS OFFICE BUILDING LEASE (this “Lease”) is made as
of this 7th day of December, 2006 by and between 140 BW
LLC (“Landlord”), a Delaware limited liability company, having an office c/o
Hines, 140 Broadway, 21st Floor, New York, New York 10005 and ACA
FINANCIAL GUARANTY CORPORATION (“Tenant”), a Maryland corporation having an
office at 140 Broadway, New York, New York 10005.

W I T N E S S E T H:

The parties hereto, for themselves, their heirs,
distributees, executors, administrators, legal representatives, successors and
assigns, hereby covenant and agree as follows:

ARTICLE 1

Definitions, Demise,
Premises, Term, Rent

Section 1.01 Definitions.
The following terms shall have the meanings hereinafter set forth throughout
this Lease.

(A)          “Base Operating Year”
shall mean the calendar year 2009.

(B)           “Base Rent” shall
mean the base rent payable by Tenant during the Term, as follows:

EXISTING PREMISES

	
  

  	
   

  	
  PAYMENTS

  	
   

  
	
  DATES

  	
   

  	
  ANNUAL

  	
   

  	
  MONTHLY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Existing Premises 

  Commencement Date 

  through January 31, 2015

  	
   

  	
  $

  	
  2,219,568.00

  	
   

  	
  $

  	
  184,964.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  February 1, 2015

  through the Expiration Date

  	
   

  	
  $

  	
  2,432,988.00

  	
   

  	
  $

  	
  202,749.00

  	
   

  

 

ADDITIONAL PREMISES

	
  

  	
   

  	
  PAYMENTS

  	
   

  
	
  DATES

  	
   

  	
  ANNUAL

  	
   

  	
  MONTHLY

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional Premises

  Commencement Date

  through January 31, 2015

  	
   

  	
  $

  	
  435,604.00

  	
   

  	
  $

  	
  36,300.34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  February 1, 2015

  through the Expiration Date

  	
   

  	
  $

  	
  477,489.00

  	
   

  	
  $

  	
  39,790.00

  	
   

  

 

(C)                   “Base
Tax Year” shall mean the Tax Year (as defined in subsection 3.01(K)) hereof)
2009/10.

 1
 

 

(D)                  “Broker”
shall mean, collectively, Cushman & Wakefield, Inc. and Studley, Inc.

(E)                    “Building”
shall mean collectively, the Office Building (as defined in subsection 1.01(K)
hereof) and the Property (as defined in subsection 1.01(N) hereof).

(F)                    “Commencement
Date” shall mean (i) September 1, 2009 (the “Existing Premises Commencement
Date”) with respect to the Existing Premises and (ii) November 1, 2009 (the “Additional
Premises Commencement Date”) with respect to the Additional Premises (as the
foregoing capitalized terms are defined in Section 1.08 hereof.)

(G)                   [Intentionally
Deleted]

(H)                  “Expiration
Date” shall mean April 30, 2020.

(I)                       [Intentionally
Deleted]

(J)                      “Landlord’s
Notice Address” shall mean Hines, 140 Broadway, 21st Floor, New York, New York 10005, Attn:
Property Management with a copy of each Notice (as defined in subsection
9.04(A) hereof) to Landlord to be sent to (i) Deutsche Immobilien Fonds AG,
Asset Management 1, Caffamacherreihe 8, 20355 Hamburg, Germany, Attn: Berit
Winkler, and (ii) Rottenberg Lipman Rich, P.C., 369 Lexington Avenue, 15th Floor, New York, New York 10017, Attention:
Charles S. Rich, Esq.

(K)                  “Office
Building” shall mean that certain building and other improvements having a
street address of 140 Broadway, New York, New York.

(L)                    “Permitted
Uses” shall mean general, executive and administrative offices in connection
with Tenant’s business and ancillary uses thereto.

(M)               “Premises”
shall mean individually, or collectively, the Existing Premises and following
the Additional Premises Commencement Date, the Additional Premises as shown on
the floor plans annexed hereto as Exhibit A-1
and Exhibit A-2, respectively.

(N)                  “Property”
shall mean that certain real property on which the Office Building is situated,
located in the City of New York, County of New York and State of New York.

(O)                  “Rent Payment
Address”: Hines 140 BW LLC

P.O. Box 27688 

New York, New York 10087-7688

(P)                    “Security
Deposit” shall mean $2,655,172.00 subject to the provisions of Section 8.01
hereof.

(Q)                  “Tenant’s Notice
Address” shall mean 140 Broadway, New York, New York 10005

Attention: General Counsel, with a copy of each notice
to Tenant to be sent to Fried, Frank, Harris, Schriver & Jacobson LLP, One
New York Plaza, New York, New York 10004, Attn: Robert J. Sorin, Esq.

(R)                   “Tenant’s
Proportionate Share” shall mean 4.618%.

(S)                    “Term”
shall mean the period commencing on the Commencement Date and ending on the
Expiration Date, being approximately ten (10) years and eight (8) months with
respect to the Existing Premises and approximately ten (10) years and six (6)
months with respect to the Additional Premises.

(T)                   “Rent
Commencement Date” shall mean (i) October 1, 2009 with respect to the Existing
Premises and (ii) May 1, 2010 with respect to the Additional Premises.

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Section
1.02 Demise. Subject to and upon the terms and
conditions set forth herein, Landlord hereby leases to Tenant and Tenant hereby
hires from Landlord the Premises located in the Office Building for the period
commencing on the Commencement Date and ending on the Expiration Date.

Section 1.03 Commencement Date;
Certain Obligations Effective Prior to the Commencement Date.

(A)          If
the Commencement Date occurs on a date other than the first day of a calendar
month, or if the Term expires or is terminated on a day other than the last day
of a calendar month, Base Rent and any Additional Rent (as defined in Section
1.05 hereof) payable hereunder shall be prorated for such partial month on the
basis of the number of days contained therein. Tenant shall pay Landlord any
prorated amount payable for the month in which the Commencement Date occurs on
the first day of the following month, along with all charges and payments due
for such following month which were not paid by Tenant upon the execution of
this Lease.

(B)           In
the event Landlord shall not deliver possession of all or any portion of the
Premises to Tenant on or before the Commencement Date for any reason
whatsoever, Landlord shall not be deemed in default or otherwise liable to
Tenant for any claims, damages, or liabilities in connection therewith or by
reason thereof, and the Term of this Lease shall commence on the date Landlord
delivers possession of the Premises to Tenant in accordance with the provisions
of this Lease; provided, however, in the event any delay in delivery of
possession of the Premises is caused by or attributable to Tenant, its
servants, employees, agents or independent contractors, Tenant’s obligations
under this Lease to pay Base Rent, the Operating Expense Payment (as defined in
subsection 3.03(A) hereof), the Tax Payment (as defined in subsection 3.02(A)
hereof) and, unless otherwise specified to the contrary herein, any other
Additional Rent, shall commence on the date Landlord would have delivered
possession of the Premises to Tenant, but for the delay caused by or
attributable to Tenant. Tenant hereby expressly waives any right to rescind or
terminate this Lease under Section 223-a of the New York Real Property Law or
any successors statute of similar import then in force and further waives the
right to recover any damages which may result from Landlord’s failure to
deliver possession of all or any portion of the Premises to Tenant on or before
the Commencement Date.

(C)           If
the Commencement Date is a date certain and/or if Tenant takes possession or
enters into occupancy of the Premises for any reason, including for the purpose
of preparing the Premises for occupancy, prior to the Commencement Date, such
possession or occupancy shall be pursuant to all of the terms, covenants and
conditions of this Lease, including the obligation to pay Base Rent, the
Operating Expense Payment, the Tax Payment and, unless otherwise specified to
the contrary herein, any other Additional Rent. Notwithstanding anything to the
contrary, the terms and conditions of the Existing Lease shall apply with
respect to the period of Tenant’s occupancy of the Existing Premises prior to
the Existing Premises Commencement Date and if Tenant shall occupy the
Additional Premises pursuant to the terms of an approved sublease prior to the
Additional Premises Commencement Date, the terms of such sublease shall apply
as between the parties thereto.

Section 1.04 Base Rent. Tenant
shall pay Landlord at the Rent Payment Address set forth in subsection 1.01(O)
hereof or at such other address as may be designated by Landlord from time to
time, monthly, in advance, on the first day of each calendar month during the
Term, monthly installments of Base Rent, without notice or demand and without
any setoff, offset, abatement or deduction whatsoever. Notwithstanding the
foregoing, upon the execution of this Lease, Tenant shall pay Landlord
$94,297.17 towards the first installment of Base Rent due for the first full
calendar month after the Commencement Date and Landlord hereby acknowledges
receipt of such payment, subject to collection with the balance due on or
before September 1, 2009.

Section 1.05 Additional Rent. All
sums other than Base Rent payable by Tenant under this Lease shall be deemed
additional rent (“Additional Rent”), regardless of whether any such sum is
expressly characterized as, or stated to be, additional rent in any other
Section of this Lease, and shall be payable within ten (10) days after demand
unless other payment dates are set forth herein. Landlord shall have the same
rights and remedies with respect to the failure by Tenant to pay Additional
Rent as Landlord has with respect to the failure by Tenant to pay Base Rent.

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Section 1.06 Use.

(A)          The
Premises shall be used and occupied by Tenant solely for the Permitted Uses,
and for no other purpose without the prior written consent of Landlord, which
consent may be withheld for any or for no reason.

(B)           Tenant
shall not use or occupy or allow the Premises to be used or occupied or do or
permit anything to be done or kept in or about the Premises, or the Building
that: (i) violates any certificate of occupancy for the Premises or the
Building (it being agreed that use for executive, administrative and general
offices shall not be deemed to violate the Certificate of Occupancy); (ii)
causes or is likely to cause damage to the Building, the Premises or any
equipment, facilities or other systems therein; (iii) impairs the character,
reputation, image or appearance of the Building as a first-class office
building; (iv) interferes with the proper and economic maintenance, operation
and repair of the Building or its equipment, facilities or systems; (v)
constitutes a nuisance, annoyance or inconvenience to other lessees or
occupants of the Building or interferes with or disrupts the use or occupancy
of any area of the Building (other than the Premises) by other tenants or
occupants; or (vi) interferes with the transmission or reception of microwave,
television, radio or other communication signals by antennae located on the
roof of, or elsewhere in the Building. Tenant shall not use or allow any part
of the Premises to be used for (i) a restaurant or bar; (ii) the preparation,
consumption, storage, manufacture or sale of food or beverages (except for
cafeteria or food service operations approved by Landlord in advance which are
incidental to general office use; pantries; and items to be consumed by
employees or at meetings or other functions for business invitees), liquor,
tobacco, or drugs; (iii) the business of photocopying, multilith or offset
printing (but Tenant may use part of the Premises for the same in connection
with its own business); (iv) a typing or stenography business; (v) a school or
classroom; (vi) lodging or sleeping; (vii) medical or dental offices or
laboratories; (viii) a barber, beauty or manicure shop; (ix) an employment
agency, executive search firm or similar enterprise; (x) the manufacture,
retail sale or storage of merchandise; (xi) a dry cleaning establishment; or
(xii) the auction of merchandise, goods or property of any kind. Tenant
acknowledges that all food service activities in the Premises shall be
performed in a sanitary and orderly manner in accordance with the Rules and
Regulations and all applicable provisions of this Lease. Tenant shall take all
preventive measures necessary to avoid any odors emanating from the Premises.
The foregoing shall not be construed to permit the operation of a food service
facility in the Premises.

Section 1.07 Abatement of Base
Rent. Provided this Lease shall be in full force and
effect and Tenant shall not be in default hereunder after expiration of any
applicable notice and grace periods, then, notwithstanding the provisions of
Section 1.04 hereof, the Base Rent shall be abated for the period commencing on
Commencement Date and ending on the Rent Commencement Date applicable to the
Existing Premises and the Additional Premises, as the case may be (each, a “Free
Rent Period”). Tenant shall be obligated to pay for its consumption of
submetered electricity in the Premises subject to and as provided in Section
4.06 from the Commencement Date through the Rent Commencement Date.
Notwithstanding anything to the contrary contained herein, if an Event of
Default shall occur hereunder, Tenant shall not be entitled to any further
abatement of Base Rent. If any abatement pursuant to this Lease shall arise
during a Free Rent Period (e.g., fire or casualty), such Free Rent Period shall
be extended day for day in connection with said abatement.

Section 1.08 Existing Lease.

(A)          Landlord
and Tenant hereby acknowledge that American Capital Access Service Corporation,
Tenant’s subsidiary, is presently in possession of the entire 47th floor of the Building and a portion of the 48th floor of the Building (collectively, the “Existing
Premises”) as more particularly shown in Exhibit
A-1 annexed hereto pursuant to the terms of (i) that certain Lease
dated August 7, 1998 (the “1998 Lease”) by and between MSDW 140 Broadway
Property, L.L.C., as predecessor-in-interest to Landlord, as landlord, and
American Capital Access Service Corporation, as predecessor-in-interest to
Tenant, as tenant, together with and as modified by (i) First Amendment of
Lease dated May 21, 1999 (the “First Amendment”; the 1998 Lease and the First
Amendment are, collectively, the “Existing Lease”). The Existing Lease shall
expire by its terms on August 31, 2009. Landlord agrees to credit the security
deposit held under the Existing Lease towards the Security Deposit due under
this Lease. Prior to the Existing Premises Commencement Date, the terms and
conditions of the Existing

 4
 

 

Lease shall govern the occupancy of the Existing
Premises; provided, however that (i) the provisions of Article Seventh and
Article Eighth of the Existing Lease (Refusal Space and Option Space) are
hereby deleted and of no further force or effect and (ii) Tenant may elect to
perform Tenant’s Initial Alteration prior to Commencement Date, subject to the
provisions of Article 2 hereof.

(B)           Effective
as of the Additional Premises Commencement Date, the Premises shall be deemed
to consist of (i) the Existing Premises and (ii) an additional portion of the
48th floor of the Building (the “Additional
Premises”) as more particularly shown on Exhibit
A-2 annexed hereto, and the term “Premises” shall mean the Existing
Premises and the Additional Premises. Tenant acknowledges the Additional
Premises are occupied by Platinum Technology International, Inc. (“Platinum”),
another tenant of the Building under the terms of a lease which shall expire as
of October 31, 2009 (the “Platinum Lease”). Landlord acknowledges that
Platinum, as sublandlord and Tenant, as subtenant, have entered into a sublease
dated October 19, 2006 (the “ACA Sublease”). The parties hereby acknowledge
that the premises demised under the ACA Sublease (the “Sublease Premises”) are
the same space as the Additional Premises demised under this Lease.

(C)           Landlord
and Tenant hereby acknowledge that any default by Tenant under the Existing
Lease beyond the expiration of applicable notice and cure periods (or under the
sublease affecting the Additional Premises) shall, at Landlord’s option, be
deemed a default under the terms of this Lease. Notwithstanding anything to the
contrary, in the event the Existing Lease (and/or the sublease affecting the
Additional Premises) is terminated or expires pursuant to its terms prior to
the Commencement Date of this Lease, or Landlord or Tenant exercise a right of
termination pursuant to the terms of the Existing Lease, this Lease shall be
deemed void  ab  initio. Upon such termination Landlord
shall have the right to retain a portion of the Security Deposit as provided in
Section 8.01 (D) hereof. Any security deposit held under the Existing Lease may
be applied towards payment of Tenant’s obligations under this Lease

Section 1.09 Recognition of ACA
Sublease.

(A)          Subject
to the provisions of Section 1.08 (C) above, Landlord agrees that so long as
the Existing Lease and the ACA Sublease shall be in full force and effect and
Tenant shall not be in default under the Existing Lease and the ACA Sublease,
in either instance, beyond any applicable notice and cure periods:

(i)     Landlord shall not, in the exercise of any
right or remedy arising or which may arise under the Platinum Lease, disturb or
deprive Tenant, as subtenant of possession or its right to possession of the
Sublease Premises or of any rights, privileges or easements to Tenant, as
subtenant under the ACA Sublease so long as the Tenant is not in default under
any of its obligations under the ACA Sublease beyond any applicable notice and
cure periods; and

(ii)    In the event that the Platinum Lease shall
terminate for any reason whatsoever prior to the expiration (or sooner
termination) of the term of the ACA Sublease, the ACA Sublease shall continue
as a direct lease between Landlord as “landlord” and Tenant as “tenant” for a
term equal to the then unexpired term of the ACA Sublease, as of the date of
the termination of the Platinum Lease, containing the same terms, covenants and
provisions as those contained in the ACA Sublease, except as otherwise
provided, as if Landlord as “landlord” and Tenant as “tenant” had originally
entered into the ACA Sublease.

(B)           Upon termination of the Platinum Lease and the creation of
a direct lease between Landlord and Tenant:

(i)     Tenant will promptly attorn as “tenant” to
Landlord and Landlord will promptly accept such attornment as “landlord”;

 5
 

 

(ii)    Landlord will have the same rights, remedies
and options as against Tenant and Landlord agrees to be bound to Tenant for the
same obligations as are contained in the ACA Sublease which Platinum Technology
International, Inc. (as landlord thereunder) had or would have had under the
ACA Sublease if the Platinum Lease had not been terminated, provided, however, that
the Landlord shall not be liable for any act or omission of Platinum as prior
landlord; or subject to any offsets or defenses which Tenant might have against
Platinum. The foregoing shall not be deemed to negate any of Landlord’s
obligations as overlandlord under the Platinum Lease.

(C)           Tenant agrees to be bound to Landlord for the same
obligations as are contained in the ACA Sublease, which Tenant had or would
have had under the ACA Sublease if the Platinum Lease had not been terminated,
except that:

(i)     Tenant will not be discharged with respect
to any fixed annual rent which Tenant may have paid in advance to Platinum in
excess of one month’s fixed annual rent,

(ii)    Tenant shall not be discharged in respect of
the portion of any additional rent as shall be allocated to one month, unless
at or before the termination of the Platinum Lease such additional rent shall
either have been paid and/or applied by Platinum in satisfaction of the
obligation for which such additional rent was paid, or shall have been paid or
transferred by Platinum to Landlord; and

(iii)   Landlord and Tenant will enter into an
appropriate supplemental agreement confirming such “direct lease” between said
parties upon the same terms and conditions as those contained in the ACA
Sublease, except as otherwise provided herein, but with such reasonable changes
as may be necessary under the circumstances.

ARTICLE 2

Condition Of The
Premises; Alterations

Section 2.01 Condition of the Premises; Tenant’s
Initial Alteration.

(A)          Tenant
acknowledges that it is in possession of the Existing Premises under the
Existing Lease and agrees that Landlord shall have no obligation to perform
work to prepare Existing Premises for Tenant’s continued occupancy. Tenant
agrees further to accept possession of the Additional Premises in the condition
which shall exist on the Additional Premises Commencement Date “as is” and
further agrees that Landlord shall have no obligation to perform any work or
make any installations in order to prepare the Additional Premises for Tenant’s
occupancy. The taking of possession of the Premises by Tenant shall be
conclusive evidence as against Tenant that at the time such possession was so
taken, the Premises and the Building were in good and satisfactory condition,
subject to latent defects in the Additional Premises, notice of which shall be
delivered to Landlord within 90 days after Tenant taking possession thereof.
The provisions of this Section 2.01 (A) are subject to the terms of the
Existing Lease governing Landlord’s restoration obligations following a fire or
casualty or condemnation which occurs prior to the Commencement Date.

(B)           Tenant
shall perform or cause the performance of alterations in and to the Existing
Premises and/or the Additional Premises (“Tenant’s Initial Alteration”) in a
good and workmanlike manner. Tenant shall have the right to perform Tenant’s
Initial Alteration prior to the Commencement Date of this Lease, subject to the
terms of this Lease. All alterations to be performed by Tenant shall be of a
quality and standard equivalent to the standards for a first-class office
building in Downtown Manhattan. Tenant shall submit to Landlord complete and
detailed plans and specifications including layout, architectural, mechanical,
electrical, plumbing, fire protection and structural plans and specifications,
showing Tenant’s Initial Alteration, which plans and specifications shall be

 6
 

 

prepared by Tenant, at Tenant’s own cost and expense.
Tenant’s submission shall include not less than five (5) sets of sepias, five (5)
sets of black and white prints and plans and specifications in CAD format. The
plans and specifications, as approved by Landlord, are hereinafter referred to
as the “Final Plans” and shall be deemed an authorization by Landlord for
Tenant to proceed with Tenant’s Initial Alteration, which shall be performed by
contractors approved by Landlord and otherwise in accordance with the
provisions of this Lease; provided, however, that Landlord reserves the right
to designate the contractor for life safety systems. The approval of the Final
Plans by Landlord shall not be deemed to create any liability on the part of
Landlord with respect to the design or specifications set forth in the Final
Plans or be deemed an acknowledgment by Landlord that the Final Plans are in
compliance with all applicable laws, rules and regulations relating thereto.

(C)                                                                                (Intentionally
Deleted)

(D)          Landlord
shall reimburse Tenant for the cost of Tenant’s Initial Alteration as approved
by Landlord and made by Tenant, to the extent of the lesser of (i) $640,260.00
with respect to the Existing Premises and $293,195.00 with respect to the
Additional Premises and (ii) the actual cost to Tenant for Tenant’s Initial
Alteration applicable to the Existing Premises or the Additional Premises, as
the case may be, as depicted on the Final Plans (“Landlord’s Contribution”).
Landlord acknowledges up to 10% of the applicable portion of Landlord’s
Contribution allocable to the Existing Premises and the Additional Premises may
be utilized by Tenant for architectural fees, engineering fees, design fees,
permitting and filing fees and other “soft costs” approved by Landlord.
Provided this Lease is then in full force and effect and Tenant is not in
default hereunder beyond any applicable notice and grace period, Landlord’s
Contribution shall be paid by progress payments as follows: on or before the
first (1st) day of each calendar month, Tenant may submit to each of Landlord
and its consultants an application and certificate for payment (standard AIA
Form G702) for that portion of Tenant’s Initial Alteration previously
completed, which application and certificate for payment must be accompanied by
(a) all information and documents required thereunder and (b) a partial lien
waiver executed by the general contractor (the “General Contractor”) and its
subcontractors employed in connection with Tenant’s Initial Alteration covering
work previously paid for out of prior progress payments. Provided Landlord’s
architect verifies in writing that the work described in any such application
and certificate for payment has been completed substantially in accordance with
the Final Plans, Landlord, shall within 45 days thereafter remit to Tenant
ninety (90%) percent of the amount so requisitioned by Tenant or such other
amount as is approved by Landlord, based on the portion of Tenant’s Initial
Alteration which has been completed, with ten (10%) percent to be retained
until final payment of Landlord’s Contribution is due pursuant to the terms of
this Section 2.01. Landlord shall pay the balance of Landlord’s Contribution to
Tenant within thirty (30) days after satisfactory completion of Tenant’s
Initial Alteration and submission by Tenant of (a) final drawings showing
Tenant’s Initial Alteration, (b) a detailed breakdown of Tenant’s final and
total construction costs, together with receipted invoices (or such other proof
of payment as Landlord shall reasonably require) showing payment thereof, (c) a
written statement from Tenant’s architect or engineer that the work described
on any such invoices has been completed substantially in accordance with the
Final Plans, (d) all required AIA forms, supporting lien waivers and releases
executed by the general contractor and all major subcontractors employed by
Tenant in connection with Tenant’s Initial Alteration, (e) the Acceptance
Letter, (f) a copy of all permits and other government authorizations necessary
in connection with Tenant’s Initial Alteration and the operation of Tenant’s
business from the Premises and (g) proof reasonably satisfactory to Landlord
that Tenant has complied with all of the conditions set forth in this Section
2.01 and has satisfactorily completed Tenant’s Initial Alteration, including,
at Landlord’s option, a certificate from Landlord’s architect after inspection
of Tenant’s Initial Alteration.

Section 2.02 Alterations.

(A)          Tenant
shall not make or perform, or permit the making or performance of, any
alterations, installations, improvements, additions or other physical changes
in or about the Premises or any part thereof (each, an “Alteration”) without
Landlord’s prior consent. Landlord shall not unreasonably withhold or delay its
consent to any Alteration proposed to be made by Tenant to adapt the Premises
for the Permitted Uses which (i) are nonstructural, (ii) do not adversely
affect the Building’s HVAC, plumbing, electrical, life safety or mechanical
systems or services, (iii) do not adversely affect any part of the Building
other than the Premises, (iv) do not

 7
 

 

adversely affect any service required to be furnished
by Landlord to Tenant or to any other tenant or occupant of the Building or (v)
do not reduce the value or utility of the Building. Any other Alteration may be
approved or disapproved by Landlord for any reason or for no reason.
Notwithstanding anything to the contrary contained in this Article 2, Tenant
shall not be required to obtain Landlord’s prior approval for any cosmetic
changes to the Premises consisting solely of painting and recarpeting, subject
to compliance with all of the applicable terms and conditions of this Lease.

(B)           Prior
to making any Alteration, Tenant shall (i) submit to Landlord or to a
consultant appointed by Landlord (“Landlord’s Consultant”) detailed plans and
specifications (including layout, architectural, electrical, plumbing,
mechanical, fire protection and structural drawings) for each proposed
Alteration in hard copy and CAD format and shall not commence any such
Alteration without first obtaining Landlord’s approval of such plans and
specifications (and Landlord shall approve or disapprove such plans and
specifications within 30 days after Landlord’s receipt of a complete set
thereof), (ii) reimburse Landlord for all out-of-pocket costs and expenses
incurred by Landlord (including the cost of Landlord’s Consultant) in connection
with Landlord’s review of Tenant’s plans and specifications, (iii) obtain and
furnish to Landlord, at Tenant’s expense, copies of all permits, approvals and
certificates required by any governmental or quasi-governmental bodies, and
(iv) furnish to Landlord duplicate original policies of worker’s compensation
insurance in statutory limits (covering all persons to be employed by Tenant,
and Tenant’s contractors and subcontractors in connection with such Alteration)
and comprehensive public liability insurance (including property damage
coverage) in such form, with such companies, for such periods and in such
amounts as Landlord may reasonably require, naming Landlord and its agents as
additional insureds in accordance with the requirements set forth in Exhibit
G annexed hereto. Tenant agrees that the review or approval by Landlord of
plans and/or specifications for any proposed Alteration is solely for Landlord’s
benefit and shall not be deemed to be a representation or warranty to Tenant
with respect to the adequacy, correctness or compliance with applicable law of
such plans and specifications or the work depicted thereon.

(C)           If
any proposed Alteration will cost more than Two-Hundred Fifty Thousand
($250,000) Dollars exclusive of the costs of decorating work and items
constituting Tenant’s Property (as defined in subsection 2.03(B)), as estimated
by a reputable contractor designated by Landlord, Tenant shall furnish to
Landlord with a cash security deposit or letter of credit in an amount equal to
one hundred twenty-five percent (125%) of the estimated cost of the Alteration,
and otherwise in form and substance reasonably satisfactory to Landlord, as
additional security for Tenant’s objections with respect to such proposed
Alterations. The provisions of this subsection 2.02(C) shall not be applicable
with respect to Tenant’s Initial Alteration.

(D)          Tenant
shall cause each Alteration to be performed in compliance with (i) all
governmental permits and certificates necessary for the commencement and
prosecution of such Alteration, (ii) applicable laws and requirements of public
authorities, (iii) all applicable requirements of insurance bodies and (iv)
substantially in accordance with the plans and specifications approved by
Landlord. All materials and equipment used in connection with any Alteration
shall be at least equal in quality and class to the then standards for the
Building reasonably established by Landlord. Every Alteration shall be
performed by contractors licensed in the state in which the Building is located
and approved by Landlord in its reasonable discretion; provided, however, that
any Alteration in or to the life safety systems of the Building shall be
performed by contractor(s) designated by Landlord. Further, each Alteration
shall be performed in such manner as not to delay, unreasonably interfere with,
or impose any additional expense upon Landlord in the maintenance, repair or
operation of the Building. Tenant shall pay all of Landlord’s actual
out-of-pocket costs incurred in connection with such Alteration, including,
without limitation, all management, engineering, outside consulting and
construction fees incurred by or on behalf of Landlord for the review and
approval of the plans and specifications, and for monitoring construction of such
Alteration, and an administrative fee equal to 5% of the cost of the
Alterations within ten (10) days after rendition of a bill therefor. Landlord
hereby waives its right to charge the 5% administrative fee in connection with
the performance of Tenant’s Initial Alteration. No Alteration shall involve the
removal of any fixtures, equipment or other property in the Premises which are
not Tenant’s Property unless such fixtures, equipment or other property shall
be promptly replaced at Tenant’s expense with new fixtures, equipment or other
property of like utility and at least equal value. Attached hereto as Exhibit
H is a list of approved contractors and

 8
 

 

sub-contractors for the Building, as some may be
amended by Landlord from time to time. Landlord hereby approves MKDA as Tenant’s
proposed architect for Tenant’s Initial Alteration.

(E)           Tenant
agrees that the exercise of its rights pursuant to the provisions of this
Section 2.02 or of any other provisions of this Lease or the Exhibits hereto
shall not be done in a manner which would violate Landlord’s union contracts
affecting the Building, or create any conflict with other contractors, work
stoppage, picketing, labor disruption or dispute or any interference with the
business of Landlord or any tenant or occupant of the Building. Tenant shall
immediately stop work if Landlord notifies Tenant that continuing such work
would violate Landlord’s union contracts affecting the Building, conflict with
other contractors, or create any work stoppage, picketing, labor disruption or
dispute or any interference with the business of Landlord or any tenant or
occupant of the Building as reasonably determined by Landlord, and Tenant shall
take all steps necessary to resolve same within 10 days after notice from
Landlord.

(F)           Tenant,
at its expense, shall promptly procure the cancellation or discharge of all
notices of violation arising from or otherwise connected with any Alterations,
or any other work or labor performed, or services or materials furnished to
Tenant, or any person claiming through or under Tenant, which shall be issued
by any public authority having or asserting jurisdiction and shall be
responsible for obtaining all “close-outs” of open building permits and full
compliance with all building code requirements provided that Tenant shall not
be obligated to cure any notices of violation issued with respect to work
performed by other tenants of the Building. Tenant shall keep the Premises and
the Building free from any liens arising out of any work or labor performed, or
services or materials furnished, or obligations incurred by or on behalf of
Tenant. Should any mechanic’s or other lien be filed against the Premises or
the Building by reason of Tenant’s or its agents’ or contractors’ acts or
omissions or because of a claim against Tenant, Tenant shall cause the same to
be canceled and discharged of record by bond or otherwise within thirty (30)
days after the filing thereof. Should Tenant fail to discharge such lien within
such thirty (30) day period, Landlord may discharge such lien, in which event
Tenant shall reimburse Landlord, on demand, as Additional Rent, for the amount
of the lien or the amount of the bond, if greater, plus all out-of-pocket costs
incurred by Landlord in connection therewith. The remedies provided herein
shall be in addition to all other remedies available to Landlord. Nothing
contained in this Lease shall be construed as constituting the consent or
request of Landlord, express or implied, to, or for the performance by, any
contractor, laborer, materialman or vendor of any labor or services or for the
furnishing of any materials for any construction, alteration, addition, repair
or demolition of or to the Premises or any part thereof. Tenant and any
subtenants shall have no power to do any act or make any contract which may
create or be the foundation of any lien, mortgage or other encumbrance upon the
reversionary or other estate of Landlord, or any interest of Landlord in the
Premises. NOTICE IS HEREBY GIVEN THAT LANDLORD IS NOT AND SHALL NOT BE LIABLE
FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED TO TENANT OR
TO ANYONE HOLDING THE PREMISES OR ANY PART THEREOF, AND THAT NO MECHANICS’ OR
OTHER LIENS FOR ANY SUCH LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT
THE INTEREST OF LANDLORD IN AND TO THE PREMISES OR THE BUILDING.

(G)           Within
sixty (60) days after the completion of any Alteration, Tenant will promptly
deliver to Landlord (i) “as-built” drawings of such Alteration in both paper
and digital formats as specified by Landlord from time to time, (ii) a detailed
breakdown of Tenant’s final and total construction costs, together with
receipted invoices (or such other proof of payment as Landlord shall reasonably
require) showing payment thereof, (iii) a written statement from Tenant’s
architect or engineer that the work described on any such invoices has been
completed in accordance with the final plans and specifications, (iv) all
required AIA forms, supporting lien waivers and releases executed by the
general contractor and all major subcontractors employed by Tenant in
connection with Tenant’s Initial Alteration, (v) a copy of all final approvals
and licenses, certificates, permits and other government authorizations
necessary in connection with the Alteration and (vi) proof reasonably
satisfactory to Landlord that Tenant has complied with all of the conditions
set forth in this Article 2 and the provisions of Exhibit F annexed
hereto.

(H)          All
fixtures and equipment installed or used by Tenant in the Premises shall be fully
paid for by Tenant.

 9
 

 

(I)            As
a condition to Landlord’s consent to any Alterations which include the
installation of telecommunication cabling and equipment (collectively, “Communications
Equipment”) located in space outside of the Premises, such as, but not limited
to, basement space, corridor space and riser space (collectively, “Building
Space”), Tenant agrees that upon the expiration or other termination of this
Lease, Tenant shall, at Tenant’s expense remove the Communications Equipment
located within the Premises and repair the affected area of the Premises to the
condition existing prior to the installation thereof. Nothing herein contained
shall be deemed to permit the installation of Communications Equipment in the
demised premises or any Building Space, unless Landlord shall have consented
thereto.

(J)            Landlord
has applied for real property tax benefits under the Industrial and Commercial
Incentive Program pursuant to Title 11, Chapter 2, Subchapter 2, Part 4(§11-256
et  seq.) of the Administrative Code of the City of New York and
accordingly, this Lease is subject to the provisions of Executive Order Nos. 50
(1980) and 108 (1986) and the Rules and Regulations promulgated thereunder, as
same may from time to time be amended and the New York city Industrial and
Commercial Incentive Program and the Rules and Regulations promulgated
thereunder (the “ICIP”). To the extent required, all Alterations must be done
in strict compliance with the ICIP laws for as long as the Building continues
to qualify for ICIP benefits and, to the extent required, Tenant acknowledges
that Landlord may be required to condition its approval for any work to be done
within the Premises on the approval of a governmental agency in connection with
the foregoing. In furtherance of the foregoing, Tenant and Tenant’s contractor
must reasonably cooperate in filing documents required by the Department of
Finance and the Department of Business Services of the City of New York in the
procurement of an ICIP exemption, the Lower Manhattan Energy Program Abatement,
and the Lower Manhattan Real Property Tax Abatement Program.

Section 2.03 Tenant’s
Property and Landlord’s Property.

(A)          All
furniture, furnishings and other articles of movable personal property and
business and trade fixtures owned by Tenant and located in the Premises
(collectively, “Tenant’s Property”) whether or not attached to the Premises
which are installed by Tenant without expense to Landlord and which can be
removed without structural damage to the Building shall be and remain the
property of Tenant and may be removed by Tenant at any time during the Term. If
Tenant shall remove any of Tenant’s Property from the Premises, Tenant shall
repair in a good and workmanlike manner any damage to the Premises or to the
Building resulting from the removal thereof. If Landlord shall have reimbursed
Tenant or allowed Tenant a credit against any installments of Base Rent or
Additional Rent in respect of any portion of Tenant’s Property, then such
portion of Tenant’s Property shall not be deemed to have been installed by
Tenant without expense to Landlord and shall be deemed the property of
Landlord.

(B)           Except
as otherwise provided in this subsection or in subsection (A) hereof, all
fixtures, equipment, improvements and appurtenances attached to or built into
the Premises at the commencement of or during the Term, whether or not by or at
the expense of Tenant, shall be and remain a part of the Premises, and shall,
upon the expiration or sooner termination of this Lease, be deemed the property
of Landlord and shall not be removed by Tenant. Further, any personal property
in the Premises on the Commencement Date, unless paid for by Tenant, shall be
and shall remain the property of Landlord and shall not be removed by Tenant.
Notwithstanding the foregoing provisions, upon notice to Tenant no later than
thirty (30) days prior to the Expiration Date or such earlier date upon which
the Term shall expire, Landlord may require Tenant to remove all or part of the
fixtures, equipment, and appurtenances attached to or built into the Premises
during the Term, in which event Tenant, at its expense, shall remove same from
the Premises prior to expiration of this Lease and shall repair any damage
caused by such removal and restore the Premises, all in a good and workmanlike
manner to the condition existing prior to installation. In the event Landlord
shall elect to have Tenant remove any mechanical or other equipment within the
Premises containing Hazardous Materials (as defined in Section 6.04), the removal
of such equipment shall conform with all requirements of law and industry
practices and shall be performed by contractors and in accordance with
procedures approved by Landlord.

 10
 

 

(C)           On
or before the Expiration Date or any sooner termination of this Lease, Tenant,
at its expense, shall remove all of Tenant’s Property from the Premises, unless
and to the extent that Landlord shall have granted its consent to Tenant to
allow specific items of Tenant’s Property to remain in the Premises. If Tenant
shall fail to remove any items of Tenant’s Property from the Premises as
required pursuant to the provisions of this Section, then, at Landlord’s
option, such items of Tenant’s Property may be deemed to have been abandoned,
and may be retained by Landlord as its property or disposed of, without
accountability, in such manner as Landlord shall determine, at Tenant’s
expense. Notwithstanding anything to the contrary contained in this Section
2.03 or elsewhere in this Lease, Landlord agrees that it shall not require the
removal of any Alterations performed as part of Tenant’s Initial Alteration,
unless such Alterations are “specialty installations” which are not typical for
general office use. At the time Tenant shall request Landlord’s consent to
Tenant’s Initial Alteration, Tenant shall also request in writing which items
shall be deemed “specialty installations” by Landlord. The foregoing provisions
shall not apply with respect to the existing Staircase Installation, the
obligations of which are set forth in subsection (D) below.

(D)          Landlord
and Tenant acknowledge that there is an existing connecting stairwell between
the 47th and 48th floors of the Premises. Not later then 8 months prior to the
Expiration Date and not earlier than 11 months prior to the Expiration Date,
Tenant shall deliver a notice to Landlord (the “Stairwell Removal Notice”)
requesting that Landlord determine whether Tenant shall be required to remove
the stairwell and repair and restore the Premises to its pre-existing
condition, including the replacement of the floor structure, slab and any other
areas affected thereby, (e.g., concrete, steel, pipes, duct work, wires and
such other similar Building structural and mechanical components) and repair
any damage caused by such removal, repair, and restoration. In the event
Landlord notifies Tenant to remove the stairwell, or if Tenant fails to deliver
the Stairwell Removal Notice, Tenant shall be required to perform the foregoing
removal work within 90 days after the Expiration Date or earlier termination of
the Lease. Landlord’s failure to notify Tenant to remove the stairwell within
30 days after receipt of the Stairwell Removal Notice shall be deemed a waiver
of Landlord’s right to require such removal. A portion of the Security Deposit
held by Landlord under the Lease, not to exceed the estimated cost of
performing Tenant’s obligation under this subsection 2.03 (D) as reasonably
determined by the Landlord, may be retained by Landlord until such time as
Tenant’s obligations have been performed and observed. Landlord shall have the
option, but not the obligation, to perform the stairwell removal work, at
Tenant’s sole cost and expense. The foregoing provisions shall survive the
Commencement Date, the Expiration Date or earlier termination of the Lease. The
provisions of this subsection 2.03(D) shall not be deemed to release the tenant
under the Existing Lease from its obligations concerning removal of the
stairwell pursuant to the terms therein.

ARTICLE 3

Escalations

Section 3.01 Escalation
Definitions. In determining any Additional Rent payable
under the provisions of this Article 3, Landlord and Tenant agree as follows:

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

(B)               “Base
Operating Year” shall have the meaning set forth in subsection 1.01(A).

(C)               “Base
Tax Amount” shall mean the Taxes for the Base Tax Year.

(D)               “Base
Tax Year” shall have the meaning set forth in subsection 1.01(C).

(E)               “Landlord’s Operating Statement”
shall mean an instrument or instruments setting forth the Operating Expense
Payment (as defined in subsection 3.03(A)) payable by Tenant pursuant to this
Article 3 for a specified Operating Year.

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(F)               “Landlord’s Tax Statement” shall
mean an instrument or instruments or invoice setting forth the Tax Payment (as
defined in subsection 3.02(A)) or any installment thereof payable by Tenant
pursuant to this Article 3 for a specific Tax Year (as defined in subsection
3.01(K)).

(G)               “Operating Expenses” shall mean
the aggregate of those costs and expenses (and taxes, if any, thereon) paid or
incurred by or on behalf of Landlord (whether directly or through agents or
independent contractors) in respect of the operation, maintenance and
management of the Property and/or the Building and the sidewalks and areas
adjacent thereto. Without limiting the generality of the foregoing, Operating
Expenses shall include the following:

(i)            legal,
accounting and professional fees and disbursements (exclusive of any such fees
and disbursements incurred in applying for any reduction in Taxes); (ii) the
cost of all insurance maintained by or on behalf of Landlord, its affiliates,
agents and employees, including, without limitation, property, liability and
fidelity insurance (or an equitable allocation of the costs thereof if obtained
under blanket policies affecting the Building and other properties owned by
Landlord or its affiliates) and the fees and charges of insurance consultants;
(iii) management fees; (iv) salaries, wages, fringe benefits of every kind and
nature, bonuses and the cost of any hospitalization, medical, surgical, Worker’s
Compensation, union and general welfare, pension, retirement or life insurance
plans, disability or other benefits imposed by law or otherwise with respect to
employees and social security, unemployment and other payroll taxes (including
any other benefit or expense that is customary for workers in first-class
office buildings) paid or incurred by Landlord (directly or by way of
reimbursement by Landlord to its agents or contractors) relating to the
employees of Landlord, or its agents or contractors engaged in the operation,
repair, cleaning, maintenance, management or security of the Building;
provided, that if any such employees of Landlord or its agents provide services
for more than one building of Landlord or its affiliates, only a prorated
portion of their wages, benefits and taxes shall be included in Operating
Expenses, based on the portion of their working time devoted to the Building;
(v) the cost of electricity, gas, steam or other fuel; operation of elevators
and security systems; heating, cooling, air conditioning and ventilating;
chilled water; hot and cold water, sewer and other utilities; utility taxes,
water rates and charges and sewer rental (except to the extent included in Taxes);
(vi) the cost for any building management office, including furniture, if any;
(vii) the cost of cleaning (including windows), painting, janitorial, trash
removal, security (including uniforms) and other services and replacement of
tubes, bulbs, lamps and ballasts required for building standard lighting
located in the non-tenanted areas of the Building; (viii) the cost of repairs
to, and maintenance of, the Building and its respective systems; (ix) the cost
of landscaping; (x) the cost of cleaning goods and supplies; (xi) the cost of,
or rental charges for (including interest charges paid by Landlord for),
machinery, equipment, tools, maintenance facilities or systems used in the
operation, repair, cleaning, maintenance, management or security of the
Building; (xii) the cost of uniforms and dry cleaning; (xiii) fees and charges
payable under service agreements on equipment; (xiv) telecommunication costs
incurred by Landlord or its agents; (xv) depreciation on personal property,
tools and moveable equipment used in the operation, repair, cleaning,
maintenance, management or security of the Building calculated on a
straight-line basis over the useful life of same; (xvi) costs of contesting the
validity or applicability of any law (exclusive of contesting Taxes); (xvii)
fees for and costs of licenses, permits and inspections; (xviii) sales, use and
utility taxes that are expended as a part of the Building’s operation, repair,
cleaning, maintenance, management or security; (xix) all expenses and costs
incurred by Landlord as a result of or in order to comply with applicable laws,
including laws pertaining to energy or natural resource conservation or
environmental protection (such as the costs of securing alternative sources of
utilities, energy or other products or services and the costs of making the
Building compatible with the use of such alternative sources); and (xx) all
charges, taxes, surcharges, assessments or penalties imposed by any government
agency or public utility as a means of conserving or controlling the
consumption of water, gas, electricity, energy sources or products, natural
resources, or other products or services.

 12
 

 

The following costs and expenses shall be excluded
from Operating Expenses:

(i)              expenses directly relating to the
leasing of space in the Building (including tenant improvements, leasing
commissions, advertising expenses and other fees incurred in connection with
the listing of available space in the Building); (ii) legal fees and
disbursements incurred for negotiation of leases or in connection with disputes
with tenants of the building; (iii) the cost of electricity for any space
occupied by tenants in the Building; (iv) expenditures for refinancing and for
mortgage debt service; (v) Taxes; (vi) depreciation of the Building and
amortization; (vii) franchise, income or other taxes imposed upon Landlord
(other than Taxes); (viii) salaries or fringe benefits of personnel above the
grade of building manager; (ix) capital improvements; except as otherwise
provided in subsection 3.01(I) hereof; and (x) costs and expenses otherwise
includable in Operating Expenses, to the extent that Landlord is reimbursed
from other sources for such costs and expenses.

The following costs and expenses shall also be
excluded from Operating Expenses:

1.                         interest,
points and fees on and amortization of any Superior Mortgage or other debt and
the cost of consummating any financing or refinancing;

2.                         rents
under any Superior Lease or other lease and the cost of consummating any
Superior Lease or other lease;

3.                         any
cost at any time of any installation and decoration incurred in connection with
preparing space for any tenant (including Tenant) of the Building;

4.                         cost
of repairs or replacements incurred by reason of fire or other casualty to the
extent to which Landlord is compensated therefor through proceeds of insurance,
or caused by the exercise of the right of eminent domain;

5.                         the
overhead and profit increments paid to Landlord, or to any subsidiary or
affiliate of Landlord, for goods and/or services in the Building, to the extent
such overhead and profit increments exceed the costs of comparable goods and/or
services delivered or rendered by unaffiliated third parties or comparable
reputation, stature, experience and quality to Landlord, on a competitive
basis;

6.                         interest,
fines, penalties, or other late payment charges paid by Landlord;

7.                         the
cost of installing, operating and maintaining any commercial concessions
operated by Landlord in the Building or of installing, operating and
maintaining any specialty services, such as a Building cafeteria or dining
facility, or an athletic, luncheon or recreational club;

8.                         Landlord’s
general corporate overhead and general administrative expenses not related to
the operation of the real property (such as fees and costs in connection with
the sale or refinancing of the real property);

9.                         to
the extent any costs includable in Operating Expenses are incurred with respect
to both the Building and other properties (including, without limitation,
salaries, fringe benefits and other compensation of Landlord’s personnel who
provide such services to both the Building and other properties), there shall
be excluded from operating expenses a fair and reasonable percentage thereof
which is properly allocable to such other properties;

10.                   costs
relating to withdrawal liability or unfunded pension liability under the
Multi-Employer Pension Plan act or similar law;

11.                   costs
incurred in connection with making any additions to, or building additional
stories on, the Building or its plazas, or adding buildings or other structures
adjoining the Building (which increase

 13
 

 

the square footage of the Building), or connecting the
Building to other structures adjoining the Building;

12.                   costs
incurred in connection with the acquisition or sale of air rights or
transferable development rights; and

13.                   costs
of any sewer or water connection fees for the benefit of any particular tenant
in the Building;

In determining the amount of Operating Expenses for
the Base Operating Year or any other Operating Year (as defined in subsection
3.01(H) below), if less than ninety-five percent (95%) of the rentable area of
the Building shall have been occupied by tenant(s) at any time during the Base
Operating Year or any other Operating Year, Operating Expenses shall be
determined for the Base Operating Year or such other Operating Year to be an
amount equal to the expenses which would normally be expected to be incurred
had such occupancy been ninety-five percent (95%) throughout the Base Operating
Year or such other Operating Year. If Landlord is not furnishing any particular
work or service (the cost of which if furnished by Landlord would constitute an
Operating Expense) to a tenant who, pursuant to its lease, has undertaken to
perform such work or service in lieu of the furnishing thereof by Landlord,
Operating Expenses shall be determined to be increased by an amount equal to
the additional Operating Expense which reasonably would have been incurred by
Landlord during such Operating Year (including the Base Operating Year, if
applicable), if Landlord had at its own expense furnished such work or services
to such tenant during such Operating Year.

(H)               “Operating Year” shall mean each
calendar year in which any part of the Term occurs.

(I)                “Required Capital Improvement
Amount” shall mean the amount of the annual amortization, together with “Interest”
thereon, of the cost incurred after the Commencement Date for capital
improvement items which result in, or are intended to result in, a reduction of
Operating Expenses or which are required to be installed under any governmental
law, regulation or authority adopted after the date of this Lease. The term “Interest”
shall mean an interest rate equal to the lesser of (i) the rate of interest
published from time to time in The Wall
Street Journal or any successor publication as the “prime rate” in
the schedule of money rates plus two percent (2%) per annum or (ii) the maximum
legal interest rate allowed by law. All such costs shall be amortized over the
reasonable life of the capital improvement items or at Landlord’s option,
pursuant to applicable IRS depreciation or amortization schedules, but in no
event to extend beyond the reasonable life of the Building.

(J)                “Taxes” shall mean all real
estate taxes, assessments, sewer and water rents, governmental levies,
municipal taxes, county taxes or any other governmental charge, general or
special, ordinary or extraordinary, unforeseen as well as foreseen, or any kind
or nature whatsoever, which are or may be assessed, levied or imposed upon all
or any part of the land, the building and the sidewalks, plazas or streets in
front of or adjacent thereto, including any tax, excise or fee measured by or
payable with respect to any rent, and levied against Landlord and/or the land and
building, under the laws of the United States, the State of New York, or any
political subdivision thereof, or by the City of New York, or any political
subdivision thereof, and shall disregard any tax abatement, reduction, credit
or exemption permitted or granted specifically to any tenant or other occupant
of the building by any governmental authority, including, without limitation,
under the ICIP (as hereinafter defined) and/or under the Lower Manhattan Real
Property Tax Abatement Program under Title 4 of Article 4 of the Real Property
Tax Law of the State of New York. Taxes shall not include income, excess
profit, revenue, excise, franchise, transfer, inheritance or capital stock tax,
unless due to a future change in the method of taxation or in the taxing
authority, a new or additional real estate tax or other tax or governmental
imposition, however designated, shall be levied against Landlord and imposed on
owners of real property as a class, and/or the land and building, in addition
to, or in substitution in whole or in part for any tax which would constitute “Taxes”,
or in lieu of additional Taxes, such tax or imposition shall be deemed for the
purposes hereof to be included within the term “Taxes” and shall be computed as
if the land and building were the sole asset of Landlord.

 14

 

(K)               “Tax Year” shall mean the annual
period(s) duly adopted from time to time by any applicable governmental
agencies, authorities or subdivisions for the purpose of imposition of Taxes in
which all or any part of the Term occurs (currently July 1 – June 30).

Section 3.02 Tenant’s
Tax Payment.

(A)          If
Taxes payable for any Tax Year shall exceed the Base Tax Amount, Tenant shall
pay Landlord, as Additional Rent, for such Tax Year an amount (the “Tax Payment”)
equal to Tenant’s Proportionate Share of the amount by which the Taxes for such
Tax Year exceed the Base Tax Amount.

(B)           Tenant’s
Tax Payment for each Tax Year shall be due and payable in two equal semi-annual
installments, on the first day of each June and December during each Tax Year,
based upon the written comparative statement furnished by Landlord prior to the
commencement of such Tax Year, until such time as a new written statement for a
subsequent Tax year shall become effective. If any such statement is furnished
to Tenant after the commencement of a Tax Year in respect of which such
statement is rendered, Tenant shall, within 30 days thereafter, pay to Landlord
an amount equal to the amount of any underpayment of Tenant’s Tax Payment with
respect to such Tax Year and, in the event of an overpayment, Landlord will
credit Tenant the amount of Tenant’s overpayment against subsequent payments of
the Base Rent under this Lease, provided that to the extent that at the
termination of this Lease no further amounts are owed by Tenant to Landlord
under this Lease, Landlord shall refund the amount of any such overpayment to
Tenant within thirty (30) days following the date of termination of this Lease.
If there shall be any increase in Taxes for any Tax Year, whether during or
after such Tax Year, Landlord shall furnish a revised statement for such Tax
Year, and Tenant’s Tax Payment for such Tax Year shall be adjusted and paid
substantially in the same manner as provided in the preceding sentence. If
during the term of this Lease, Taxes are required to be paid (either to the
appropriate taxing authorities or as tax escrow payments to a superior
mortgagee) in full or in monthly, quarterly, or other installments, on any
other date or dates than as presently required, then at Landlord’s option,
Tenant’s Tax Payments shall be correspondingly accelerated or revised so that
said Tenant’s Tax Payments are due at least thirty (30) days prior to the date
payments are due to the taxing authorities or the superior mortgagee.

(C)           Landlord
shall endeavor to furnish to Tenant a Landlord’s Tax Statement for each Tax
Year as soon as reasonably practicable after the end of each Tax Year. If the
Landlord’s Tax Statement shall show that the sums paid by Tenant, if any,
pursuant to subsection (B) hereof exceeded the Tax Payment due from Tenant for
the Tax Year for which Landlord’s Tax Statement is furnished, Landlord shall
credit the amount of such excess against the immediately succeeding
installments of Base Rent due under this Lease; and if the Landlord’s Tax
Statement for such Tax Year shall indicate that the sums so paid by Tenant were
less than the Tax Payment due from Tenant for such Tax Year, Tenant shall pay
the amount of such deficiency within ten (10) days after rendition of a bill
therefor.

(D)          If
Landlord shall receive a refund of Taxes for any Tax Year, Landlord shall
credit against subsequent installments of Base Rent due under this Lease, the
amount of Tenant’s Proportionate Share of the refund (after deducting from the
total refund the costs and expenses of obtaining same, including, but not
limited to, appraisal, accounting and legal fees and disbursements, to the
extent that such costs and expenses were not included in Taxes for the
applicable Tax Year), provided that the amount of any such credit shall not
exceed the amount of Tenant’s Tax Payment actually paid for such Tax Year.

(E)           Nothing
contained in this Lease shall obligate Landlord to bring any application or
proceeding seeking a reduction in Taxes. Tenant, for itself and its immediate
and remote subtenants and successors in interest hereunder, hereby waives, to
the extent permitted by law, any right Tenant may now or in the future have to
protest or contest any Taxes or to bring any application or proceeding seeking
a reduction in Taxes.

(F)           The
benefit of any discount for the early payment or prepayment of Taxes shall
accrue solely to the benefit of Landlord and such discount shall not be
subtracted from Taxes.

 15
 

 

(G)           Any
Tax Payment or tax refund pursuant to subsection 3.02(D) in respect of any Tax
Year which begins prior to the Commencement Date or terminates after the
Expiration Date, shall be prorated to correspond to that portion of such Tax
Year occurring within the Term.

(H)          The
Base Tax Amount shall be reduced if and to the extent Taxes comprising the Base
Tax Amount are reduced as a result of an appropriate proceeding or otherwise.
Landlord shall give notice to Tenant of the amount by which the Tax Payments
previously made were less than the Tax Payments required to be made under this
Section 3.02, and Tenant shall pay the amount of the deficiency within 10 days
after rendition of a bill therefor.

Section 3.03 Tenant’s
Operating Expense Payment.

(A)          For
each Operating Year or portion thereof occurring during the Term (including the
Operating Year in which the Commencement Date occurs), Tenant shall pay an
amount (the “Operating Expense Payment”) equal to the sum of (i) Tenant’s
Proportionate Share of the amount by which the Operating Expenses for such
Operating Year exceed the Base Operating Amount, and (ii) Tenant’s
Proportionate Share of the Required Capital Improvement Amount for such
Operating Year.

(B)           Landlord
may furnish to Tenant, prior to the commencement of each Operating Year, a
written statement setting forth Landlord’s reasonable estimate of the Operating
Expense Payment for such Operating Year. Tenant shall pay Landlord on the first
day of each month during the Operating Year in which the Operating Expense
Payment will be due, an amount equal to one-twelfth (1/12) of Landlord’s
estimate of the Operating Expense Payment for such Operating Year. If, however,
Landlord shall not furnish an estimate for an Operating Year or if Landlord
shall furnish an estimate for an Operating Year subsequent to the commencement
of the applicable Operating Year, then until the first day of the month
following the month in which an estimate is furnished to Tenant, Tenant shall
pay Landlord on the first day of each month an amount equal to one-twelfth
(1/12) of the annual Operating Expense Payment payable by Tenant for the
preceding Operating Year. If Landlord shall furnish its estimate of the
Operating Expense Payment for a given Operating Year subsequent to the
commencement of such Operating Year, then after such estimate is furnished to
Tenant, Tenant shall pay Landlord, within ten (10) days after receipt of such
estimate, an amount equal to the product of (i) one-twelfth (1/12) of the
estimated Operating Expense Payment for such Operating Year and (ii) the number
of months (and any fractions thereof) to and including the then current month
that have elapsed or commenced since the commencement of such Operating Year less
the aggregate of any payments previously made on account of Operating Expense
Payments in respect of such Operating Year pursuant to the provisions of this
subsection (B). On the first day of the month following the month in which such
estimate is furnished to Tenant and continuing monthly thereafter until the
furnishing of a new estimate, Tenant shall pay Landlord an amount equal to one-twelfth
(1/12) of the Operating Expense Payment shown on such estimate. Landlord may
furnish Tenant with a revised statement of Landlord’s estimate of the Operating
Expense Payment for an Operating Year at any time during such Operating Year,
in which event the Operating Expense Payment for such Operating Year shall be
adjusted and shall be paid by Tenant to Landlord or credited by Landlord
against subsequent installments of Base Rent, as the case may be.

(C)           Landlord
shall endeavor to furnish to Tenant a Landlord’s Operating Statement for each
Operating Year as soon as reasonably practicable after the end of each
Operating Year. If the Landlord’s Operating Statement shall show that the sums
paid by Tenant, if any, pursuant to subsection (B) hereof exceeded the
Operating Expense Payment due from Tenant for the Operating Year for which
Landlord’s Operating Statement is furnished, Landlord shall credit the amount
of such excess against the immediately succeeding installments of Base Rent due
under this Lease; and if the Landlord’s Operating Statement for such Operating
Year shall indicate that the sums so paid by Tenant were less than the
Operating Expense Payment due from Tenant for such Operating Year, Tenant shall
pay the amount of such deficiency within thirty (30) days after rendition of a
bill therefor.

(D)          Any
Landlord’s Operating Statement sent to Tenant shall be conclusively binding
upon Tenant unless, within one hundred twenty (120) days after such statement
is sent, Tenant shall (i) pay Landlord the amount set forth in such statement,
without prejudice to Tenant’s right to dispute same, and (ii) send a written
notice to

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Landlord objecting to the statement and specifying the
respects in which the statement is claimed to be incorrect. Tenant recognizes
and agrees that Landlord’s books and records, and those of Landlord’s agents
with respect to the operation of the Building are confidential and that, except
as herein specifically provided, Tenant shall have no right to inspect the
same, and that any disclosure of dissemination of such confidential information
shall be a material default under this Lease. Upon delivery of such notice by
Tenant, Landlord shall make available to Tenant’s accountants for inspection
Landlord’s books and records, with respect to Operating Expenses, solely to the
extent necessary to verify the computations set forth in such Landlord’s
Operating Statement. Such books and records shall be made available for
inspection by such accountants upon reasonable prior notice, during business
hours at a location in the Borough of Manhattan designated by Landlord. At
Landlord’s option, Landlord shall have the right to deliver for inspection, in
lieu of Landlord’s books and records, photocopies of relevant sections thereof.
If Tenant shall dispute the correctness of Landlord’s Operating Statement as
aforesaid, and the parties shall not be able to resolve such dispute within
ninety (90) days after the delivery of Tenant’s notice, then either party may
refer the matter or matters in dispute to independent reputable certified
public accountants (then having no other business relationship with Landlord or
Tenant) selected by Landlord and reasonably approved by Tenant, and the
decision of such accountants shall be conclusive and binding upon the parties.
The fees and expenses of said independent accountants in determining such
matter or matters shall be borne by the unsuccessful party (and if both parties
are partially unsuccessful, the independent accountant shall apportion the fees
and disbursements between the parties based upon the degree of success of each
party).

(E)           The
Operating Expense Payment in respect of any Operating Year which begins prior
to the Commencement Date or terminates after the Expiration Date shall be
prorated to correspond to that portion of such Operating Year occurring during
the Term.

Section 3.04 Refunds,
Credits, Adjustments.

(A)          If
Tenant is entitled to a credit against subsequent installments of Base Rent in
accordance with the provisions of Section 3.03 and if this Lease shall expire
before any such credit shall have been fully applied, then, provided Tenant is
not in default hereunder, Landlord shall promptly refund to Tenant the
unapplied balance of such credit.

(B)           The
expiration or termination of this Lease during any Tax Year or Operating Year
shall not affect the rights or obligations of the parties hereto with respect
to any Tax Payment or Operating Expense Payment that may be due in respect
thereto, and any Landlord’s Tax Statement or Landlord’s Operating Statement, as
the case may be, relating to such Tax Payment or Operating Expense Payment may
be sent to Tenant subsequent to, and all such rights and obligations shall
survive, any such expiration or termination of this Lease. Any payments due as
set forth in such Landlord’s Tax Statement or Landlord’s Operating Statement,
as the case may be, shall be payable within twenty (20) days after such
statement is sent to Tenant.

(C)           Any
failure or delay on the part of Landlord in rendering (i) Landlord’s Operating
Statement with respect to any Operating Year (or any component of the Operating
Payment), or (ii) Landlord’s Tax Statement with respect to any Tax Year shall
not prejudice Landlord’s right to thereafter render a Landlord’s Operating
Statement or a Landlord’s Tax Statement with respect to any such Operating Year
(or any such component), or any such Tax Year, provided such statements are
rendered 24 months after the expiration of the applicable Tax Year or Operating
Year, respectively, and provided further that Tenant shall not be entitled to
any refund or credit as indicated on such statement if Tenant is in default
under this Lease after the expiration of any applicable notice or cure periods.
In addition, the rendering of a Landlord’s Operating Statement for any
Operating Year or a Landlord’s Tax Statement for any Tax Year shall not
prejudice Landlord’s right to thereafter render a corrected statement for such
Operating Year or Tax Year, provided such corrected statement is issued within
24 months after the expiration of the applicable Tax Year or Operating Year.

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ARTICLE 4

Tenant’s Covenants And
Rights

Section 4.01 Assignment
and Subletting.

(A)          Tenant
covenants that it shall not, by operation of law or otherwise, assign, sublet,
encumber or mortgage this Lease, or any part thereof, or permit the Premises to
be used by others without the prior written consent of Landlord in each
instance. Any attempt by Tenant to assign, sublet, encumber or mortgage this
Lease except in accordance with the provisions of this Section 4.01 shall be
voidable at Landlord’s election. The consent by Landlord to any assignment,
mortgage, encumbrance, subletting or use of the Premises by others shall not
constitute a waiver of Landlord’s right to withhold its consent to any other
assignment, subletting, mortgage, encumbrance or use by others of the Premises.
Whether or not Landlord’s consent shall be granted to any proposed assignment
or subletting, Tenant shall reimburse Landlord for the reasonable out-of-pocket
expenses, including attorneys’ fees and disbursements, incurred by Landlord in
connection with Tenant’s request for such consent. The absolute and
unconditional prohibitions set forth in this subsection (A) and Tenant’s
agreement thereto are material inducements to Landlord to enter into this Lease
with Tenant, and any breach or attempted breach thereof shall constitute an
Event of Default (as defined in subsection 7.01(A) hereof). For the purposes of
this subsection (A), except as otherwise expressly permitted under this Section
4.01(i) the transfer or issuance of stock ultimately resulting in ownership of
a majority of the issued and outstanding capital stock of any corporate tenant,
or of a corporate subtenant (unless Tenant terminates such sublease), or the
transfer of a majority of the total interest in any partnership tenant or
subtenant, however accomplished, whether in a single transaction or in a series
of related or unrelated transactions, shall be deemed an assignment of this
Lease, or of such sublease, as the case may be, except that the transfer of the
outstanding capital stock of any corporate tenant, or subtenant, shall not be
deemed to include the sale of such stock by persons or parties through the “over-the-counter
market” or through any recognized stock exchange, other than by those deemed to
be a “control person” within the meaning of the Securities Exchange Act of
1934, as amended, (ii) a takeover agreement or similar agreement whereby the
obligations of Tenant under this Lease are assumed by another party shall be
deemed a transfer of this Lease, (iii) any person or legal representative of
Tenant, to whom Tenant’s interest under this Lease passes by operation of law,
or otherwise, shall be bound by the provisions of this subsection (A), (iv) a
modification, amendment or extension of a sublease shall be deemed a sublease
(unless consented to by Landlord), and (v) if Tenant consists of more than one
person, a purported assignment (whether voluntary, involuntary or by operation
of law) by any of the persons executing this Lease shall be deemed a voluntary
assignment of this Lease. Notwithstanding anything to the contrary contained
herein, any rights and/or options of first offer, refusal or extension granted
to Tenant shall be personal to Tenant named herein and, except in connection
with a permitted transfer pursuant to the provisions of subsection 4.01(M) and
subsection 4.01(N) of this Lease, shall be deemed null and void in the event of
any assignment of this Lease or sublease of all or substantially all of the
Premises.

(B)           In
the event that Tenant shall desire to sublease all or a part of the Premises or
enter into an assignment of this Lease, Tenant shall deliver a notice of intent
to sublease or assign to Landlord setting forth (i) the effective date of a
proposed assignment or proposed sublease, (ii) the proposed base annual rent
and additional rent to be paid by a subtenant and the Term, (iii) the number of
rentable square feet proposed to be sublet and location thereof, and (iv) such
other information as Landlord may reasonably require.

(C)           The
notice containing all of the information set forth in Subsection B of this
Section 4.01 above shall be deemed an offer from Tenant to Landlord whereby
Landlord (or Landlord’s designee) may, at its option, (a) sublease such space
(hereinafter called the “Leaseback Space”) from Tenant upon the terms and
conditions hereinafter set forth (if the proposed transaction is a sublease of
all or part of the Premises), (b) terminate this Lease (if the proposed
transaction is an assignment or a sublease of all or substantially all of the
Premises for all or substantially all of the Term), or (c) terminate this Lease
with respect to the Leaseback Space (if the proposed transaction is a sublease
of part of the Premises for all or substantially all of the balance of the
term). Said options may be exercised by Landlord by notice to Tenant at any
time within thirty(30) days after the aforesaid notice has been given by Tenant
to Landlord.

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(D)          If
Landlord exercises its option to terminate this Lease in the case where Tenant
desires either to assign this Lease or sublet all or substantially all of the
Premises, then this Lease shall end and expire on the date that such assignment
or sublet was to be effective or commence, as the case may be, and the Rent and
additional rent due hereunder shall be paid and apportioned to such date.
Furthermore, if Landlord exercises its option to terminate this Lease in part
in any case where Tenant desires to sublet part of the Premises, then (i) this
Lease shall end and expire with respect to such part of the Premises on the
date that the proposed sublease was to commence; (ii) from and after such date
the Rent and additional rent due hereunder shall be adjusted, based upon the
proportion that the rentable area of the Premises remaining bears to the total
rentable area of the Premises; (iii) from and after such date Tenant shall
afford Landlord and its agents, tenants, undertenants, or licensees reasonable
appropriate means of ingress and egress to and from such surrendered space; and
(iv) Tenant shall pay to Landlord, upon demand, the costs incurred by Landlord
in physically separating such part of the Premises from the balance of the
Premises and in complying with any legal or insurance requirements relating to
such separation, and the repairing and restoration to tenantable condition of
any part of the remainder of the Premises which is physically affected by such
separation.

(E)           If
Landlord exercises its option to sublet the Leaseback Space, such sublease to
Landlord or its designee (as subtenant) shall be at the lower of (i) the rental
rate per rentable square foot of Rent and additional rent then payable pursuant
to this Lease, or (ii) the rentals set forth in the proposed sublease, and
shall be for the same term as that of the proposed subletting, and such
sublease:

(i)     shall be expressly subject to all of the
covenants, agreements, terms, provisions and conditions of this Lease except
such as are irrelevant or inapplicable, and except as otherwise expressly set
forth to the contrary in this Article 4;

(ii)    shall be upon the same terms and conditions
as those contained in the proposed sublease, except such as are irrelevant or
inapplicable and except as otherwise expressly set forth to the contrary in
this Article 4;

(iii)   shall give the subtenant the unqualified and
unrestricted right, without Tenant’s permission, to assign such sublease or any
interest therein and/or to sublet the space covered by such sublease or any
part or parts of such space and to make any and all changes, alterations and
improvements in the space covered by such sublease, and if the proposed
sublease will result in all or substantially all of the Premises being sublet,
grant Landlord or its designee the option to extend the term of such sublease
for the balance of the term of this Lease less one (1) day;

(iv)   shall provide that any assignee or further
subtenant of Landlord or its designee, may, at the election of Landlord, be
permitted to make alterations, decorations and installations in such space or
any part thereof and shall also provide in substance that any such alterations,
decorations and installations in such space therein made by any assignee or
subtenant of Landlord or its designee may be removed, in whole or in part, by
such assignee or subtenant, at its option, prior to or upon the expiration or
other termination of such sublease provided that such assignee or subtenant, at
its expense, shall repair any damage and injury to such space so sublet caused
by such removal. Notwithstanding anything to the contrary, Tenant shall have no
obligation to remove any alterations, decorations or installations to such
space made by or on behalf of such assignee or subtenant; and

(v)    shall also provide that (a) the parties to
such sublease expressly negate any intention that any estate created under such
sublease be merged with any other estate held by either of said parties, (b)
any assignment or subletting by Landlord or its designee (as the subtenant) may
be for any purpose or purposes that Landlord, in Landlord’s uncontrolled
discretion, shall deem suitable or appropriate, (c) Tenant, at Tenant’s
expense, shall and will at all times provide and permit reasonably appropriate
means of ingress to and egress from such space so sublet by Tenant to Landlord
or its designee, (d) Landlord, at Tenant’s expense, may make such alterations
as may be required or deemed necessary by Landlord to physically separate the
subleased space from the balance of the Premises and to comply with any legal
or insurance requirements relating to such separation, and (e) that at the
expiration of the term of such sublease, Tenant will accept the space covered
by such sublease

 19
 

 

in its then existing condition, subject to the
obligations of the subtenant to make such repairs thereto as may be necessary to
preserve the premises demised by such sublease in good order and condition.

(F)           If
Landlord exercises its option to sublet the Leaseback Space, (i) Landlord shall
indemnify and save Tenant harmless from all obligations under this Lease as to
the Leaseback Space during the period of time it is so sublet to Landlord; (ii)
performance by Landlord, or its designee, under a sublease of the Leaseback
Space shall be deemed performance by Tenant of any similar obligation under
this Lease and any default under any such sublease shall not give rise to a
default under a similar obligation contained in this Lease nor shall Tenant be
liable for any default under this Lease or deemed to be in default hereunder if
such default is occasioned by or arises from any act or omission of the tenant
under such sublease or is occasioned by or arises from any act or omission of
any occupant holding under or pursuant to any such sublease; and (iii) Tenant
shall have no obligation, at the expiration or earlier termination of the Term,
to remove any alteration, installation or improvement made in the Leaseback
Space by Landlord (or its designee); In addition, if required by applicable law
in connection with any termination of this Lease, or subletting of all or any
portion of the Leaseback Space to Landlord or its designee, Tenant shall
complete, swear to and file any questionnaires, tax returns, affidavits or
other documentation which may be required to be filed with the appropriate
governmental agency in connection with any other tax which may now or hereafter
be in effect. Tenant further agrees to pay any amounts which may be assessed in
connection with any of such taxes and to indemnify Landlord against and to hold
Landlord harmless from any claims for payment of such taxes as a result of such
transactions.

(G)           In
the event Landlord does not exercise any of the options provided pursuant to the
provisions of subsection 4.01(C) within 30 days of the date of Landlord’s
receipt of Tenant’s notice of intent to sublease or assign, Landlord shall be
deemed to have waived the right to exercise such options. If, after such
waiver, Tenant desires Landlord’s consent to the subletting of all or part of
the Premises or the assignment of this Lease, Tenant shall give Landlord prior
written notice thereof, which notice shall include (i) the name and address of
the proposed assignee or subtenant, (ii) a reasonably detailed description of
such person or entity’s business, (iii) detailed financial references for such
person or entity (including its most recent audited or “reviewed” balance sheet
and income statement), (iv) a written authorization by such proposed subtenant
or assignee for Landlord or its designee to cause a credit check to be
performed with respect to it, (v) a signed conditional assignment or sublease
which shall set forth, inter alia (1) the effective date of the proposed
assignment or the commencement date of the proposed sublease, (2) the base
annual rent and additional rent to be paid by the proposed subtenant in (which
shall be within a variance of plus/minus 5% from the base rental rate(s) set
forth in the notice of intent to sublet or assign), and (3) the number of
rentable square feet proposed to be sublet (which shall be the same space as
set forth in the notice of intent to sublet or assign), and (vi) such other
information as Landlord may reasonably require. Provided that Tenant is not
then in default of any of Tenant’s obligations under this Lease (after notice
and the expiration of any applicable grace period) as of the time of Landlord’s
consent, and as of the effective date of the proposed assignment or the
commencement date of the proposed sublease, Landlord’s consent (which must be
in form and substance reasonably satisfactory to Landlord) to the proposed
assignment or sublease shall not be unreasonably withheld or delayed, provided
and upon the condition that:

(i)     In
Landlord’s judgment the proposed assignee or subtenant is engaged in a business
or activity, and the Premises, or the relevant part thereof, will be used in a manner,
which (1) is in keeping with the then standards of the Building, (2) is limited
to the use of the Premises as general and executive offices of the type
generally found in first-class office buildings, and (3) will not violate any
negative covenant as to use contained in any other lease of office space in the
Building of which Tenant has been provided notice;

(ii)    The
proposed assignee or subtenant is a reputable person with sufficient financial
worth considering the responsibility involved, and Landlord has been furnished
with audited financial statements and with other reasonable proof thereof;

(iii)   Neither
(1) the proposed assignee or sublessee nor (2) any person which, directly or
indirectly, controls, is controlled by, or is under common control with, the
proposed assignee or

 20
 

 

sublessee, is then an occupant of any part of the
Building if there is other comparable space then available for lease in the
Building;

(iv)   The
proposed assignee or sublessee is not a person with whom Landlord is then negotiating
to lease space in the Building;

(v)    The
proposed sublease or instrument of assignment shall be in form and substance
reasonably satisfactory to Landlord, and the terms and conditions of the
sublease shall not differ in any material respect from the terms contained in
the proposed term sheet furnished to Landlord pursuant to subsection 4.01(G);

(vi)   The
Premises shall not have been publicly advertised for assignment or sublease at
a rental rate less than the then current market rent per rentable square foot
for the Premises as though the Premises were vacant;

(vii)  The
proposed subtenant or assignee shall not be entitled, directly or indirectly,
to diplomatic or sovereign immunity and shall be subject to the service of
process in, and the jurisdiction of the courts of, the State of New York; and

(viii) Tenant
shall pay to Landlord, all reasonable direct and indirect expenses incurred by
Landlord prior to any such assignee or sublessee taking possession of all or
any portion of the Premises, including, but not limited to, those expenses
incurred for freight elevator, security service, janitorial service and rubbish
service.

(H)          If
Landlord shall decline to give its consent to any proposed assignment or
sublease, or if Landlord shall exercise any of its options afforded pursuant to
subsection 4.01(C), Tenant shall defend, indemnify and hold harmless Landlord
against and from any and all loss, liability, damages, costs, and expenses
(including reasonable attorneys’ fees and disbursements) resulting from any
claims that may be made against Landlord by the proposed assignee or sublessee
or by any brokers or other persons claiming a commission or similar
compensation in connection with the proposed assignment or sublease.

(I)            If
(i) Landlord fails to exercise either of its options under subsection 4.01(C)
and consents to a proposed assignment or sublease, and (ii) Tenant fails to
execute and deliver the fully executed assignment or sublease to which Landlord
consented within ninety (90) days after submission of the documents provided in
subsection 4.01(G) hereof, then, Tenant shall again comply with all of the
provisions and conditions of subsection 4.01(B) and (C) before assigning this
Lease or subletting all or part of the Premises.

(J)            (1)           If Landlord shall consent to any
assignment of this Lease, Tenant shall, in consideration therefor, pay to
Landlord, as Additional Rent, an amount equal to one-half (1⁄2) of (i) all sums
and other consideration paid to Tenant by an assignee for or in connection with
such assignment including sums paid for the purchase or rental of Tenant’s
Property and all or any part of the leasehold improvements, less (ii) the
expenses incurred by Tenant in connection with such assignment for brokerage
commissions, improvements to the Premises to the extent paid for by Tenant and
not reimbursed by the assignee, and reasonable legal fees. (2) If Landlord
shall consent to any sublease, each rental or other payment received by Tenant
under such sublease (including each sum received by Tenant for the sale or
rental of Tenant’s Property and/or all of any part of the leasehold
improvements) shall be applied as follows:

(1)           first,
such sublease rent payment shall be retained by Tenant until Tenant shall have
retained under this clause (i) an amount equal to all Base Rent and Additional
Rent payable under this Lease with respect to the subleased space during or in
respect of the period to which such sublease rent payment relates;

(ii)           second,
the balance of such sublease rent payment shall be retained by Tenant until
Tenant shall have retained under this clause (ii) an amount equal to the
expenses incurred by

 21
 

 

Tenant in connection with such sublease for brokerage
commissions, improvements to the subleased space to the extent paid for by
Tenant and not reimbursed by subtenant, and reasonable legal fees; and

(iii)          third,
one-half (1/2) the balance of such sublease rent payment shall be paid by
Tenant to Landlord.

The Base Rent and Additional Rent allocable to the
subleased space for any period shall equal the total Base Rent and Additional
Rent accruing during such period in respect of the Premises multiplied by a
fraction, the numerator of which is the number of rentable square feet of the
subleased space and the denominator of which is the number of rentable square
feet of the Premises. Tenant shall make payment to Landlord with respect to
each sublease rent payment within thirty (30) days of Tenant’s receipt thereof.
Such payment shall be accompanied by a detailed computation of the amount paid.

(K)          Each
sublease shall provide that it is subject and subordinate to this Lease and to
the matters to which this Lease is or shall be subordinate, and that in the
event of termination, re-entry or dispossession by Landlord under this Lease,
Landlord may, at its option, take over all of the right, title and interest of
Tenant, as sublessor, under such sublease, and such subtenant shall, at
Landlord’s option, attorn to Landlord pursuant to the then executory provisions
of such sublease, except that Landlord shall not (i) be liable for any previous
act or omission of Tenant under such sublease, (ii) be subject to any
counterclaim, offset or defense, not expressly provided in such sublease, which
theretofore accrued to such subtenant against Tenant, or (iii) be bound by any
previous modification of such sublease or by any previous prepayment of more
than one (1) month’s Base Rent and Additional Rent without Landlord’s prior
express written consent. The provisions of this subsection shall be
self-operative and no further instrument shall be required to give effect to
this provision.

(L)           The
consent by Landlord to any assignment or subletting shall not constitute a
waiver of the necessity for Landlord’s consent to any subsequent assignment or
subletting. If this Lease is assigned or if the Premises or any part thereof is
occupied by anybody other than Tenant, Landlord may collect rent from the
assignee or occupant and apply the net amount collected to the rent herein
reserved, but no such assignment, subletting, occupancy or collection shall be
deemed a waiver of this provision or the acceptance of the assignee,
undertenant or occupant as tenant, or as a release of Tenant from the further
performance by Tenant of the provisions on its part to be observed or performed
herein. Notwithstanding any assignment or sublease, Tenant shall remain fully
liable and shall not be released from performing any of the terms of this
Lease, and, in the event of an assignment, the Tenant named herein and any
assignee of such Tenant who assumes the obligations of the named Tenant under
this Lease shall be jointly and severally liable for the performance of all
obligations of Tenant under this Lease from and after such assignment. In no
event shall any permitted subtenant deal directly with Landlord with respect to
the provision of services or the performance of Landlord’s other obligations it
being understood that Landlord shall continue to deal solely with Tenant unless
Landlord has otherwise agreed in writing. Nothing contained herein shall
release Tenant from the obligations for the payment of any services provided to
subtenant.

(M)         Notwithstanding anything to the contrary contained herein,
Tenant may assign this Lease to or permit any corporation or other business
entity which is and continues at all times to control, be controlled by, or be
under common control with Tenant (each a “related corporation”) to sublet the
Premises for any of the purposes permitted to Tenant under this Lease (subject
however to compliance with Tenant’s obligations under this Lease) provided that
(i) Tenant shall not then be in default (after any applicable grace and/or cure
periods set forth in subsection 7.01(A) in the performance of any of its
obligations under this Lease), (ii) prior to such assignment or subletting, Tenant
furnishes Landlord with the name of any such related corporation, together with
evidence reasonably satisfactory to Landlord that the proposed assignee or
subtenant, as the case may be, is a related corporation of Tenant, (iii) in the
reasonable judgment of Landlord, the proposed assignee or subtenant is in
keeping with the standards of Landlord for the Building and (iv) in the event
of an assignment or a sublease of all or substantially all of the Premises, the
assignee or sublessee shall have a net worth computed in accordance with
generally accepted accounting principles at least equal to the then current
credit standards utilized by Landlord in its reasonable discretion for
comparable space, taking into account the financial obligations under this
Lease, and

 22
 

 

proof satisfactory to
Landlord of such net worth shall have been delivered to Landlord at least ten
(10) days prior to the effective date of any such transaction. Any subletting
to a related corporation shall not be deemed to vest in such related
corporation any right or interest in this Lease or the Premises nor shall it
relieve, release, impair or discharge any of Tenant’s obligations hereunder.
For the purposes hereof, “control” shall be deemed to mean ownership of not
less than fifty-one percent (51%) of all of the voting stock of such
corporation or not less than fifty-one percent (51%) of all of the legal and
equitable interest in any other business entities. The provisions of
subsections 4.01(B), 4.01(C), 4.01(D) and 4.01(J) shall be inapplicable with respect to the transfer under
this subsection 4.01 (M).

(N)          The provisions of this Section shall not apply to
transactions with a corporation into or with which Tenant is merged or
consolidated or to which substantially all of Tenant’s equity interests or
assets are transferred, provided that in any of such events (i) the successor
to Tenant has a net worth computed in accordance with generally accepted
accounting principles at least equal to the net worth of Tenant named herein on
the date of this Lease
and (ii) proof satisfactory to Landlord of such net worth shall have been
delivered to Landlord at least ten (10) days prior to the effective date of any
such transaction. The provisions of subsections 4.01(B), 4.01(C), 4.01(D) and
4.01(J) shall be inapplicable with respect to the transfers under this
subsection 4.01(N).

(O)          No assignment or sublease made pursuant to this Section and
no assignment or sublease otherwise consented to by Landlord shall be valid
unless, at least fifteen (15) days prior to the effective date thereof, Tenant
shall deliver to Landlord a fully executed counterpart of the proposed (i)
sublease in the form previously approved by Landlord or (ii) assignment and assumption, in form
and substance reasonably satisfactory to Landlord, pursuant to which assignee
assumes all of the obligations and liabilities of Tenant under this Lease.

(P)           The joint and several liability of Tenant and any
immediate or remote successor in interest of Tenant and the due performance of
the obligations of this Lease on Tenant’s part to be performed or observed
shall not be discharged, released or impaired in any respect by any agreement
or stipulation made by Landlord extending the time or modifying any of the obligations of this
Lease, or by any waiver or failure of Landlord to enforce any of the
obligations of this Lease. Notwithstanding the foregoing, if this Lease shall
be assigned by Tenant and thereafter Landlord and the assignee shall modify
this Lease, no predecessor Tenant hereunder shall be bound by such modification
unless it has consented to in writing.

(Q)          If the Landlord shall recover or come into possession of
the Premises before the date herein fixed for the termination of this Lease,
Landlord shall have the right, at its option, to take over any and all
subleases or sublettings of the Premises or any part thereof made by Tenant and
to succeed to all the rights of sublandlord under such subleases and
sublettings or such of them as it may elect to take over. Tenant hereby
expressly assigns and
transfers to Landlord those subleases and sublettings as Landlord may elect to
take over at the time of such recovery of possession. Such assignment and
transfer shall not be effective until the date of the termination of this Lease
or re-entry by Landlord hereunder or the date that Landlord shall otherwise
succeed to Tenant’s estate in the Premises, at which time Tenant shall, upon
request of Landlord, execute, acknowledge and deliver to Landlord such further
instruments of assignment and transfer as may be necessary to vest in Landlord
the then existing subleases and sublettings. Every subletting hereunder is
subject to the condition and by its acceptance of and entry into a sublease,
each subtenant thereunder shall be deemed conclusively to have agreed that from
and after the date of termination of this Lease or re-entry by Landlord
hereunder or the date that Landlord shall otherwise succeed to Tenant’s estate
in the Premises, that such subtenant shall waive any right to surrender
possession or to terminate the sublease and, at Landlord’s election, such
subtenant shall be bound to Landlord for the balance of the term of such
sublease and shall attorn to and recognize Landlord, as its landlord, under all
of the then executory terms of such sublease, except that Landlord shall not
(i) be liable for any previous act, omission or negligence of Tenant under such
sublease, (ii) be subject to any counterclaim, defense or offset which
theretofore accrued to such subtenant against Tenant, (iii) be bound by any previous
modification or amendment of such sublease not approved in writing by Landlord
or by any previous prepayment of more than one (1) month’s rent and additional
rent which shall be payable as provided in the sublease, or (iv) be
obligated to perform any work in the subleased space or to prepare it for
occupancy beyond Landlord’s obligations under this Lease, and the subtenant
shall execute and deliver to Landlord any instruments Landlord may reasonably
request

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to evidence and confirm such attornment. Each subtenant or licensee
of Tenant shall be deemed automatically upon and as a condition of occupying or
using the Premises or any part thereof, to have given a waiver of the type
described in and to the extent and upon the conditions set forth in this subsection
(Q).

(R)           Tenant named herein (or any related corporation to which
this Lease is assigned pursuant to subsection M above may permit portions of
the Premises to be occupied, at any time and from time to time, by persons or
entities who have an existing business relationship with Tenant named herein,
but who are not members, officers or employees of Tenant (each such person or
entity who is permitted to occupy portions of the Premises pursuant to this section being referred to herein as
a “Special Occupant”) without (x) Landlord’s prior approval and (y) Landlord
having the right to recapture the Premises or part thereof or terminate the
Term in respect thereof, provided that, in each case (i) Tenant is not then in
default of any of its obligations under this Lease, (ii) no demising walls are
erected in the Premises separating the space used by a Special Occupant from
the remainder of the Premises, (iii) the Special Occupant uses the Premises in
conformity with all applicable provisions of this Lease, (iv) the use of any
portion of the Premises by any Special Occupant shall not create any real
property interest of the Special Occupant in or to the Premises other than a
license, shall not result or be deemed to result in any privity between the
Landlord and the Special Occupant, shall be subject and subordinate to this
Lease and to all matters to which this Lease is subject and subordinate and, in
the event this Lease is terminated, all of Special Occupants rights to use or
occupy any portion of the Premises shall terminate automatically, (v) the
portion of the Premises exclusively used by all Special Occupants shall not
exceed five percent (5%) in the aggregate of the rentable area of the Premises,
and (vi) at least ten (10) days prior to a Special Occupant taking occupancy of
a portion of the Premises and thereafter from time to time, Tenant gives notice
to Landlord advising Landlord of (1) the name and address of such Special
Occupant, (2) the character and nature of the business to be conducted by such
Special Occupant, (3) the portion of the Premises to be occupied by such
Special Occupant, (4) the duration of such occupancy, and (5) the fee, if any,
to be paid by such Special Occupant for its use of the applicable portion of
the Premises.

Section 4.02 Care
of Premises; Repairs.

(A)          Tenant shall, throughout the Term, take good care of the
Premises and the fixtures and appurtenances therein and at Tenant’s sole cost and
expense, make all nonstructural repairs thereto as and when needed to preserve
them in good working order and condition, reasonable wear and tear and damage
for which Tenant is not responsible under the terms of this Lease excepted. In
addition, all damage or injury to the Premises or to any other part of the
Building, or to its fixtures, equipment and appurtenances, whether requiring
structural or nonstructural repairs, caused by or resulting from carelessness,
omission, neglect or improper conduct of or any Alteration made by Tenant,
Tenant’s servants, employees, invitees or licensees, shall, to the extent
affecting the Premises, be repaired promptly by Tenant, at its sole cost and
expense, to the satisfaction of Landlord and, to the extent affecting the
Building (other than the Premises), be repaired by Landlord, at Tenant’s sole
expense. All repairs to be performed by Tenant shall be of quality or class
equal to the original work or construction in the Premises and shall be made in
accordance with the provisions of Section 2.02 hereof. If Tenant fails within
ten (10) days after receipt of notice to commence and to proceed thereafter
with due diligence to make repairs required to be made by Tenant, such repairs
may be performed by Landlord, at the expense of Tenant.

(B)           Tenant shall not place a load upon any floor of the
Premises exceeding the floor load of 50 lbs. per square foot live load and
which is allowed by law. Landlord reserves the right to prescribe the weight
and position of all safes, files, paper and book storage facilities, business machines and heavy equipment and
installations. Business machines and mechanical equipment shall be placed and
maintained by Tenant at Tenant’s expense in settings sufficient in Landlord’s
judgment to absorb and prevent vibration, noise and annoyance. Tenant shall not
move any safe, heavy machinery, heavy equipment, freight, bulky matter or
fixtures into or out of the Building without Landlord’s prior consent and
payment to Landlord of Landlord’s costs in connection therewith. If such safe,
machinery, equipment, freight, bulky matter or fixtures requires special
handling, Tenant agrees to employ only persons holding a Master Rigger’s
License to do said work, and that all work in connection therewith shall comply
with the Administrative Code of the City of New York and all other laws and
regulations applicable thereto, and shall be done during such hours as Landlord
may designate.

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Section 4.03 Compliance with Law.
Tenant at its sole expense shall comply with all laws, orders
and regulations of federal, state, county and municipal authorities and with
any directive of any public officer or officers, and with all rules, orders,
regulations or requirements of the New York Board of Fire Underwriters, or any
other similar body which shall impose any violation, order or duty upon
Landlord or Tenant with respect to the Premises as a result of the use or
occupation thereof by Tenant for any purpose other than the Permitted Uses or
the conduct by Tenant of its business in the Premises in a manner different
from the ordinary and proper conduct of such business; provided, however, that
Tenant shall not be obligated to make any structural alterations or repairs to
the Premises to comply with the foregoing requirements except structural
alterations or repairs arising from Tenant’s particular use or manner of use of
the Premises. Tenant shall not do or permit to be done any act upon the
Premises which will invalidate or be in conflict with any insurance policies
covering the Building and fixtures
and property therein; and shall not do, or permit anything to be done in or upon
the Premises, or bring or keep anything therein, except as now or hereafter
permitted by the New York City Fire Department, the New York Board of Fire
Underwriters, the New York Fire Insurance Rating Organization or other
authority having jurisdiction and then only in such quantity and manner of
storage as not to increase the rate for fire insurance applicable to the
Building, or use the Premises in a manner which shall increase the rate of fire
insurance on the Building or on property located therein over that in similar
type buildings or in effect prior to this Lease. Any work or installations made
or performed by or on behalf of Tenant or any person claiming through or under
Tenant pursuant to this Article shall be made in conformity with, and subject
to the provisions of, Section 2.02 hereof. If by reason of the failure of
Tenant to comply with the provisions of this Article, the fire insurance rate
shall at the beginning of this Lease or at any time thereafter be higher than
it otherwise would be, then Tenant shall reimburse Landlord, as Additional
Rent, for that part of all fire insurance premiums thereafter paid by Landlord
which shall have been charged because of such failure by Tenant, and Tenant
shall make such reimbursement upon the first day of the month following such
outlay by Landlord. In any action or proceeding wherein Landlord and Tenant are
parties, a schedule or “make up” of rates for the Building or the Premises
issued by the New York Fire Insurance Rating Organization, or other body fixing
such fire insurance rates, shall be conclusive evidence of the facts therein
stated and of the several items and charges in the fire insurance rates then
applicable to the Premises. Tenant shall maintain the Premises in compliance
with Title III of the Americans with Disabilities Act of 1990 and all
regulations promulgated thereunder (“ADA”) at its cost and expense. Tenant, at
its sole cost and expense and after notice to Landlord, may contest by
appropriate proceedings prosecuted diligently and in good faith, the legality
or applicability of any legal requirement affecting the Premises, provided that
Landlord shall not be subject to any imprisonment or to prosecution for a
crime, nor shall the Building or any part thereof be subject to being condemned
or vacated, nor shall the certificate of occupancy for the Premises or the
Building be suspended or threatened to be suspended by reason of noncompliance
or by reason of such contest, and Tenant shall indemnify Landlord against the
cost of such compliance and the liability resulting from or incurred in
connection with such contest or noncompliance and, if requested by Landlord,
Tenant shall post such security or bond as Landlord may reasonably require.

Section 4.04 Tenant’s Insurance.

(A)                              Tenant
shall procure and maintain throughout the Term of this Lease, at its sole cost
and expense, the following insurance:

(1)           Commercial General Liability
Insurance providing coverage for bodily injury (including death), property
damage, automobile liability and products liability insurance (where such
exposure exists). This policy shall contain a broad form contractual liability
endorsement under which the insurer agrees to insure Tenant’s obligations under
subsection 4.05(A) hereof. Such insurance shall have a combined single limit of
not less than Three Million Dollars ($3,000,000) per occurrence and Five
Million Dollars ($5,000,000) in the aggregate for all occurrences within each
policy year, or such greater amounts as Landlord may from time to time require;

(2)           Fire
and extended coverage insurance covering Tenant’s personal property, fixtures,
improvements, wall coverings, floor coverings, window coverings, alterations,
furniture, equipment, lighting, ceilings, heating, ventilation and air
conditioning equipment, interior plumbing and plate glass

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against loss or damage by fire, windstorms, hail,
earthquakes, explosion, riot, flood, damage from aircraft and vehicles, smoke
damage, vandalism and malicious mischief and such other risks as are from time
to time covered under “extended coverage” endorsements and special extended
coverage endorsements commonly known as “all risks” endorsements, in an amount
equal to the greater of the full replacement value or the amount required by
the holder of any Mortgage or the lessor under a Superior Lease (each as
defined in subsection 5.01(B) hereof) from time to time and containing the
waiver of subrogation required in Section 6.03 of this Lease;

(3)           State
Worker’s Compensation Insurance in the statutorily mandated limits and Employers
Liability Insurance with limits of not less than Five Hundred Thousand Dollars
($500,000), or such greater amount as Landlord may from time to time require;

(4)           Business
interruption insurance with coverage for at least one (1) year; and

(5)           Such
other insurance as Landlord may reasonably require from time to time, if such
insurance is generally required by landlords of first-class office buildings in
Lower Manhattan similar to the Building or is required by the holder of any
Mortgage.

(B)           It
is expressly understood and agreed that the foregoing minimum limits of
insurance coverage shall not limit the liability of Tenant for its acts or
omissions as provided in this Lease. All of the foregoing insurance policies
(with the exception of Worker’s Compensation Insurance to the extent not
available under statutory law) shall name Landlord, the holder of any Mortgage
any lessor under a Superior Lease or any managing agent for the Building and
such other parties as Landlord shall from time to time designate as an additional
insured as their respective interests may appear, and shall provide that any
loss shall be payable to Landlord and any other additional insured parties as
their respective interests may appear. All insurance required hereunder shall
be placed with companies which are rated A:XI or better by Best’s Insurance
Guide and which are licensed to do business in the State of New York. All such
policies shall be written as primary policies with annual deductibles not to
exceed Ten Thousand Dollars ($10,000). Any other policies, including Landlord’s
coverage, will serve as excess coverage. Tenant shall deliver certificates
evidencing such coverage prior to the Commencement Date, or, in the case of
renewals thereto, fifteen (15) days prior to the expiration of the prior
insurance policy, together with evidence that such policies are fully paid for,
and Tenant shall use all commercially reasonable efforts to cause its insurer
to provide that no cancellation, material change or non-renewal thereof shall
be effective except upon thirty (30) days prior written notice from the insurer
to Landlord. If Tenant shall fail at any time to procure and/or maintain the
insurance required herein, Landlord may, at its option, procure such insurance
on Tenant’s behalf and the cost thereof shall be payable upon demand, as
Additional Rent. Payment by Landlord of any insurance premium or the carrying
by Landlord of any such insurance policy shall not be deemed to waive or
release the default of Tenant with respect thereto.

(C)           Landlord,
at Landlord’s sole cost and expense (but subject to recoupment pursuant to
Section 3.03 hereof), shall obtain and keep in full force and effect insurance
against loss or damage by fire and other casualty to the Building, as may be
insurable under the then available standard forms “all-risk” insurance
policies, in an amount equal to 80% of the replacement value thereof or in such
lesser amount as will avoid coinsurance (including an “agreed amount”
endorsement).

Section 4.05 Tenant’s
Indemnification.

(A)          Tenant
shall indemnify, defend and hold harmless Landlord and its officers, directors,
employees, attorneys and agents (collectively, the “Indemnitees”) from and
against any and all claims, demands, causes of action, judgments, costs and
expenses, and all losses and damages arising from Tenant’s use of the Premises
or from the conduct of its business or from any activity, work, or other acts
or things done, permitted or suffered by Tenant in or about the Premises, and
shall further indemnify, defend and hold harmless the Indemnitees from and
against any and all claims arising from any breach or default in the
performance of any obligation on Tenant’s part to be performed under the terms
of this Lease, or arising from any act, omission or negligence or willful or
criminal misconduct of Tenant, or any officer, agent, employee, independent
contractor, guest, or invitee thereof,

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and from all costs, reasonable attorneys’ fees and
disbursements, and liabilities incurred in the defense of any such claim or any
action or proceeding which may be brought against, out of or in any way related
to this Lease. Upon notice from Landlord, Tenant shall defend any such claim,
demand, cause of action or suit at Tenant’s expense by counsel reasonably
satisfactory to Landlord, it being acknowledged that counsel designated by
Tenant’s insurance carrier shall be deemed satisfactory to Landlord. As a
material part of the consideration to Landlord for this Lease, Tenant hereby
assumes all risk of damage to property or injury to persons in, upon or about
the Premises from any cause, and Tenant hereby waives all claims with respect
thereto against Landlord except to the extent caused by the gross negligence or
willful misconduct of Landlord. Tenant shall give immediate notice to Landlord
in case of casualty or accidents in the Premises. The provisions of this
subsection (A) shall survive the expiration or sooner termination of this
Lease.

(B)           Landlord
or its agents shall not be liable for any loss or damage to persons or property
resulting from fire, explosion, falling plaster, steam, gas, electricity, water
or rain which may leak from any part of the Building or from the pipes,
appliances or plumbing works therein or from the roof, street or subsurface or
from any other places resulting from dampness or any other cause whatsoever, or
from the act or negligence of any other tenant or any officer, agent, employee,
contractor or guest of any such tenant, except personal injury caused by or due
to the gross negligence or willful or criminal misconduct of Landlord. In
addition, Landlord or its agents shall not be liable for (i) interference with
the electrical service, ventilation, or for any latent defect in the Premises,
(ii) any loss or damage for which Tenant is required to insure, or (iii) any
loss or damage resulting from any construction, Alteration or repair required
or permitted to be performed by Tenant under this Lease, except to the extent
caused by or due to the gross negligence or willful misconduct of Landlord.

Section 4.06 Electricity.

(A)          Landlord
shall redistribute or furnish electrical energy to or for the use of Tenant in
the Premises for the operation of
the lighting fixtures and the electrical receptacles installed in the Premises
and for the operation of any other electrical equipment within the Premises
approved by Landlord. Landlord shall install a submeter, at its cost, to
measure Tenant’s consumption of electrical energy in the Premises as part of
Landlord’s Initial Construction unless previously installed in the Premises.
The cost of electricity utilized by Tenant shall be paid for by Tenant as
Additional Rent and shall be calculated by applying “Landlord’s Cost” of
electricity to the kilowatt hours, by time of day, if applicable, and kilowatts
of demand as recorded on Tenant’s electric submeter or submeters, plus any
taxes or other charges in connection therewith and, to the extent permitted by
law, five percent (5%) of the foregoing as Landlord’s charge for overhead and
supervision. “Landlord’s Cost” shall mean the average cost per kilowatt hour
(energy) and average cost per kilowatt (demand), by time of day, if applicable,
pursuant to which Landlord purchases electricity for the Building, including,
without limitation, fuel adjustment changes, rate adjustment charges, ESCO
charges, sales tax, and/or any other factors utilized by the public utility
and/or other energy supply company in calculating its charges to the Building
for a given period of time. Landlord shall bill Tenant, monthly, for the costs
of its consumption of electricity in the Premises and Tenant shall pay the
amount thereof at the time of payment of each installment of Base Rent. If
either the supply or character of electrical service is changed by the public
utility or other company supplying electrical service to the Building for any
reason whatsoever or is no longer suitable for Tenant’s requirements, no such
change or unsuitability shall constitute an actual or constructive eviction, in
whole or in part, or entitle Tenant to any abatement or diminution of Base Rent
or Additional Rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Landlord, or its agents, by reason of
inconvenience or annoyance to Tenant, or injury to or interruption of Tenant’s
business, or otherwise. Landlord shall maintain and repair the electrical
submeters at Landlord’s cost and expense.

(B)           Any
additional feeders or risers which are required to supply any additional
electrical requirements which Tenant may have, and all other equipment proper
and necessary in connection with such feeders or risers, shall be installed by
Landlord upon Tenant’s request, at the sole cost and expense of Tenant,
provided that, in Landlord’s reasonable judgment, such additional feeders or
risers are necessary and are permissible under applicable laws and insurance
regulations and the installation of such feeders or risers will not cause
permanent damage or injury to the Office Building or the Premises or cause or
create a dangerous or hazardous condition or entail excessive or unreasonable
alterations or interfere with or disturb other tenants or occupants of the
Office Building. At no time

 27
 

 

shall the use of electrical energy in the Premises
exceed the capacity of the existing feeders or wiring installations then
serving the Premises. Tenant shall not make or perform, or permit the making or
performance of, any alterations to wiring installations or other electrical
facilities in or serving the Premises without the prior consent of Landlord in
each instance. Any such alterations, additions or consent by Landlord shall be
subject to the provisions of this Lease. If Landlord shall grant its consent,
all additional feeders, risers or other equipment required therefor shall be
installed by Landlord and the cost thereof shall be paid by Tenant, as
Additional Rent, within ten (10) days after the rendition of a bill therefor.
Landlord shall provide up to six (6) watts of electricity per usable square
foot connected load to the Premises, including lighting, but exclusive of the
operation of the Building HVAC system.

(C)           Landlord
reserves the right to discontinue furnishing electricity to Tenant in the
Premises on not less than sixty (60) days notice to Tenant. If Landlord is
compelled to discontinue furnishing electricity to Tenant due to prohibitions
against providing submetered electricity, this Lease shall continue in full
force and effect and shall be unaffected thereby, except only that from and
after the effective date of such discontinuance, Landlord shall not be obligated
to furnish electricity to Tenant. If Landlord so discontinues furnishing
electricity to Tenant, Tenant shall arrange to obtain electricity directly from
the public utility or other company servicing the Building. Such electricity
may be furnished to Tenant by means of the then existing electrical facilities
serving the Premises to the extent that the same are available, suitable and
safe for such purposes. All meters and all additional panel boards, feeders,
risers, wiring and other conductors and equipment which may be required to
obtain electricity, of substantially the same quantity, quality and character,
shall be installed by Landlord at Tenant’s sole cost and expense. Landlord
shall not voluntarily discontinue furnishing electricity to Tenant until Tenant
is able to receive electricity directly from the public utility or other
company servicing the Building.

(D)          Landlord
shall not be liable to Tenant in any way for any interruption, curtailment or
failure or defect in the supply or character of electricity furnished to the
Premises by reason of any requirement, act or omission of Landlord or of any
public utility or other company servicing the Building with electricity or for
any other reason except Landlord’s gross negligence or willful conduct.

Section 4.07 Personal Property
Taxes. Tenant shall pay or cause to be paid before
delinquency, any and all taxes levied or assessed and payable during the Term
upon all of Tenant’s leasehold improvements, equipment, furniture, fixtures,
and other personal property located in the Premises.

Section 4.08 Signs.

(A)          Tenant
shall not exhibit, inscribe, paint or affix any sign, advertisement, notice or
other lettering on any portion of the Building or the outside of the Premises
without the prior written consent of Landlord which consent shall not be
unreasonably withheld, conditioned or delayed. A plan of all signage or other
lettering proposed to be exhibited, inscribed, painted or affixed shall be
prepared by Tenant in conformity with building standard signage requirements
and all applicable laws and submitted to Landlord for Landlord’s consent. If
the proposed signage is acceptable to Landlord, Landlord shall approve such
signage or other lettering by written notice to Tenant. All signage or other
lettering which has been approved by Landlord shall thereafter be installed by
Landlord at Tenant’s sole cost and expense. In the event Landlord requires
payment in advance for the installation of any such signage or other lettering,
no installation shall be commenced by Landlord until Landlord has received
payment in full. Notwithstanding the foregoing, Landlord’s consent shall not be
required with respect to signage located in the elevator lobby as to any full
floor space, or within the interior of the Premises.

(B)           After
the installation of any such signage or other lettering in accordance with the
provisions of this Section 4.08, such signage or lettering shall not be
removed, changed or otherwise modified in any way without Landlord’s prior
written approval. The removal, change or modification of any signage or other
lettering theretofore installed shall be performed solely by Landlord at Tenant’s
sole cost and expense.

(C)           Any
signage, advertisement, notice or other lettering which shall be exhibited,
inscribed, painted or affixed by or on behalf of Tenant in violation of the
provisions of this Section may be removed by Landlord at Tenant’s sole cost.

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(D)          Prior
to vacating the Premises, Tenant shall, at its sole cost and expense, promptly
remove its sign(s) and placards, and upon the removal or alteration of any of
its sign(s) and placards for any reason, Tenant shall repair, paint, restore or
replace the surface beneath such signs or placards damaged by such removal. If
Tenant fails to comply with any of the provisions set forth in this Section,
Landlord may, without liability, enter upon the Premises and remove same at
Tenant’s expense.

Section 4.09 Surrender. Upon
the expiration of the Term or other termination of this Lease, and without
further notice, Tenant shall peaceably and quietly quit and surrender to
Landlord the Premises, broom clean, in the same condition as existed on the
Commencement Date, excepting only ordinary wear and tear and loss by fire or
other casualty which Tenant is not obligated to repair pursuant to the terms
hereof. Tenant’s obligation to observe or perform this covenant shall survive
the Expiration Date or prior termination of this Lease. The voluntary or other
surrender of possession of the Premises by Tenant or a mutual cancellation of this
Lease shall not result in a merger of Landlord’s and Tenant’s estates.

Section 4.10 Telephone Service.
Tenant shall separately arrange with, and pay directly to,
the applicable local public authorities or utilities, as the case may be, for
the furnishing, installation and maintenance of all telephone services and
equipment as may be required by Tenant in the use of the Premises. Landlord
shall not be liable for any damage resulting from Tenant’s inability to receive
such service, and any such inability shall not relieve Tenant of any of its
obligations under this Lease.

Section 4.11 Partnership or
Limited Liability Company Tenant.

(A)          Partnership
Tenant. If Tenant is a partnership (or is comprised of two (2) or more
persons) or if Tenant’s interest in this Lease shall be assigned to a
partnership (or to two (2) or more persons) pursuant to Section 4.01 (any such
partnership and such persons are referred to in this Section 4.11 as a “Partnership
Tenant”), the following provisions of this Section 4.11 shall apply to such
Partnership Tenant: (i) the liability of each of the parties comprising a
Partnership Tenant shall be joint and several, and (ii) each of the parties
comprising a Partnership Tenant
hereby consents in advance to, and agrees to be bound by, any written
instrument which may hereafter be executed, changing, modifying or discharging
this Lease, in whole or in part, or surrendering all or any part of the
Premises to Landlord, and by any notices, demands, requests or other
communications which may hereafter be given by a Partnership Tenant or by any
of the parties comprising a Partnership Tenant, and (iii) any bills,
statements, notices, demands, requests or other communications given or
rendered to a Partnership Tenant and to all such parties shall be binding upon
a Partnership Tenant and all such parties, and (iv) if a Partnership Tenant
shall admit new partners, all of such new partners shall, by their admission to
a Partnership Tenant, be deemed to have assumed performance of all of the
terms, covenants and conditions of this Lease on Tenant’s part to be observed
and performed, and (v) a Partnership Tenant shall give prompt notice to
Landlord of the admission of any such new partners, and upon demand of
Landlord, shall cause each such new partner to execute and deliver to Landlord
an agreement in form reasonably satisfactory to Landlord, wherein each such new
partner shall assume performance of all the terms, covenants and conditions of
this Lease on Tenant’s part to be observed and performed (but neither Landlord’s
failure to request any such agreement nor the failure of any such new partner
to execute or deliver any such agreement to Landlord shall vitiate the
provisions of clause (iv) of this Section 4.11).

(B)           Limited
Liability Entity. Notwithstanding anything to the contrary contained
herein, if Tenant is a limited or general partnership (or is comprised of two
(2) or more persons, individually or as co-partners), the change or conversion
of Tenant to (i) a limited liability company, (ii) a limited liability
partnership, or (iii) any other entity which possesses the characteristics of
limited liability (any such limited liability company, limited liability
partnership or entity is collectively referred to as a “Limited Liability
Successor Entity”), shall be prohibited unless the prior written consent of
Landlord is obtained, which consent may be withheld in Landlord’s sole
discretion. Notwithstanding the foregoing, Landlord agrees not to unreasonably
withhold or delay such consent provided that:

(i)     The Limited Liability Successor Entity
succeeds to all or substantially all of Tenant’s business and assets;

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(ii)    The Limited Liability Successor Entity shall
have a net worth, determined in accordance with generally accepted accounting
principles, consistently applied, of not less than the greater of the net worth
of Tenant on (1) the date of execution of this Lease, or (2) the day
immediately preceding the proposed effective date of such conversion;

(iii)   Tenant is not in default of any of the terms,
covenants or conditions of this Lease on the proposed effective date of such
conversion;

(iv)   Tenant shall cause each partner of Tenant to
execute and deliver to Landlord an agreement, in form and substance
satisfactory to Landlord, wherein each such partner agrees to remain personally
liable for all of the terms, covenants and conditions of this Lease that are to
be observed and performed by the Limited Liability Successor Entity; and

(v)    Tenant shall reimburse Landlord within ten
(10) business days following demand by Landlord for any and all reasonable
costs and expenses that may be incurred by Landlord in connection with said
conversion of Tenant to a Limited Liability Successor Entity, including,
without limitation, any attorney’s fees and disbursements.

Section 4.12 Sprinklers. If
there now is or shall be installed in the Building a “sprinkler system,” or
other life safety system and such system or any of its appliances shall be
damaged or injured or not in proper working order by reason of any act or
omission of Tenant, Tenant’s agents, servants, employees, licensees or
visitors, Tenant shall forthwith restore the same to good working condition at
its own expense. If the New York Board of Fire Underwriters or the New York
Fire Insurance Rating Organization or any bureau, department or official of the
state or city government shall require or recommend that any changes,
modifications, alterations or additional sprinkler heads or other equipment be
made or supplied by reason of Tenant’s business, or the location of the
partitions, trade fixtures, or other contents of the Premises, Tenant shall, at
its expense, promptly make and supply such changes, modifications, alterations,
additional sprinkler heads or other equipment.

Section 4.13 Window Cleaning. Tenant
shall not (a) require, permit, suffer or allow the cleaning of any window in
the Premises from the outside (within the meaning of Section 202 of the New
York Labor Law or any successor statute thereto) unless the equipment and
safety devices required by Section 202 of the New York Labor Law or any
successor statute thereto, are provided and used, or (b) permit, suffer or
allow the cleaning of the outside of any window from within the Premises except
by persons employed by Landlord. Tenant hereby indemnifies Landlord against
liability as a result of Tenant’s (i) requiring, permitting, suffering or
allowing any window in the Premises to be cleaned from the outside in violation
of any requirement of Section 202 of the New York Labor Law or any successor
statute thereto, or (ii) permitting, suffering or allowing the outside of any
window to be cleaned from within the Premises other than by persons employed by
Landlord. The covenants and agreements set forth in this Section 4.13 shall
survive the expiration or earlier termination of this Lease.

Section 4.14 Tenant’s Option to
Extend

(A)          Tenant
shall have the one-time right, at its option, to extend the Term for a single
five (5) year period (the “Extension Term”). The Extension Term shall commence
on the day after the Expiration Date and shall expire on the fifth anniversary
of the Expiration Date unless the Extension Term shall sooner end pursuant to
any of the terms, covenants or conditions of this Lease or pursuant to law.
Provided this Lease shall then be in full force and effect and Tenant shall not
be in default hereunder and the expiration of any applicable notice and grace
period and Landlord shall not have previously delivered more than two (2)
written notices of any monetary default hereunder within the preceding
forty-eight (48) months, Tenant may exercise its option to extend the Term by
giving Landlord written notice of such election no later than one (1) year
prior to the Expiration Date, the TIME OF EXERCISE BEING OF THE ESSENCE, and
upon the giving of such notice, this Lease and the Term shall be extended
without execution or delivery of any other or further documents, with the same
force and effect as if the Extension Term had originally been included in the
Term and the Expiration Date shall thereupon be deemed to

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be the last day of the Extension Term. Notwithstanding
Tenant’s exercise of its option under this Subsection (A), at Landlord’s option
the Extension Term shall not commence if Tenant shall be in monetary default
hereunder as of the Expiration Date and Landlord has delivered a written notice
of default, in which event the Term shall expire on the Expiration Date and the
provisions of this Section shall be deemed null and void and of no further
force or effect. All of the terms, covenants and conditions of this Lease shall
continue in full force and effect during the Extension Term, except that (i) the
Base Rent shall be as determined in accordance with Subsection (B) of this
Section 4.14, and (ii) Tenant shall have no further right to extend the Term of
this Lease pursuant to this Section 4.14.

(B)           The
annual Base Rent payable by Tenant for the Premises during the Extension Term
shall be the fair market rental value of the Premises determined as of the day
immediately preceding the Extension Term. Immediately after the exercise by
Tenant of its option under Subsection (A) above, Landlord and Tenant shall use
their best efforts to agree upon the fair market rental value of the Premises
(exclusive of electricity charges). For the purposes of this Lease, the “fair
market rental value” of the Premises shall mean the annual rental value for
comparable office space renewals for a comparable class of office buildings in
Downtown Manhattan, taking all relevant factors into consideration. In the
event Landlord and Tenant cannot reach agreement within forty-five (45) days
after the date of Tenant’s notice of exercise of its option. Landlord and
Tenant shall confer and appoint a reputable, qualified, licensed real estate
broker who shall have an office in the county in which the Building is located,
who is familiar with the rentals then being charged in the Building and in
comparable buildings and who has at least 10 years’ experience (the “Independent
Broker”). If Landlord and Tenant shall fail to agree upon the designation of
the Independent Broker, then upon ten (10) days’ notice, either party may apply
to the Supreme Court of the county in which the Building is located to appoint
the Independent Broker. Concurrently with such appointment, Landlord and Tenant
shall each submit a letter to the Independent Broker, with a copy to the other,
setting forth their respective estimates of the fair market rental value of the
Premises, taking into consideration the duration of the Extension Term and all
other terms and conditions of this Lease which are applicable to the Extension
Term (respectively, “Landlord’s Letter” and “Tenant’s Letter”). The Independent
Broker shall determine the fair market rental value of the Premises during the
Extension Term and shall choose the fair market rental value set forth in
either Landlord’s Letter or Tenant’s Letter to be the Base Rent during the
Extension Term. The fees and expenses of the Independent Broker and all costs
incurred in connection with the appointment of the Independent Broker shall be
shared equally by Landlord and Tenant.

In the event the Extension Term shall commence prior
to a determination of the Base Rent during the Extension Term having been made
in accordance with Subsection (B) of this Section 4.14, then the Base Rent to
be paid by Tenant to Landlord until such determination has been made shall be
the greater of (i) the fair market rental value as set forth in Landlord’s
Letter plus all sums payable pursuant to any other Additional Rent, or (ii) the
Base Rent for the twelve (12) month period immediately preceding the
commencement of the Extension Term, including any other Additional Rent payable
pursuant to Article 3 hereof or as otherwise provided herein. After such
determination has been made for the Base Rent during the Extension Term, any
excess rental for the Extension Term theretofore paid by Tenant to Landlord shall
be credited by Landlord against the next ensuing monthly Base Rent payable by
Tenant to Landlord and any deficiency in Base Rent due from Tenant to Landlord
during the Extension Term shall be paid within ten (10) business days.
Notwithstanding anything to the contrary, Tenant’s rights under this Section
4.14 are personal to the Tenant named herein and may not be exercised by any
permitted successor, assign or subtenant of the Premises.

Section 4.15 Tenant’s
Right of First Offer

(A)          If,
at any time Landlord shall desire to lease the entire balance of the
forty-sixth (46th)
floor of the Building (the “Expansion Space”) to a third party other than the
existing tenant in any such space, or any other party having any pre-existing
rights to the Expansion Space, Landlord shall first give Tenant notice (“Landlord’s
Notice”) of the availability of the Expansion Space and the length of the Term.
Tenant shall have the one-time right, exercisable by notice to Landlord within
20 days after the date of Landlord’s Notice, the time of giving of such notice
to be of the essence of this agreement, to notify Landlord that Tenant agrees
to lease the Expansion Space for the Term specified in Landlord’s Notice,
provided that, at the time of Tenant’s exercise, this Lease shall

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be in full force and effect and Tenant shall not then
be in monetary default hereunder. The Base Rent payable in respect of the
Expansion Space shall be determined pursuant to subsection 4.15(B) below. In
the event that Tenant fails to deliver notice of exercise its right to lease
the Expansion Space within 20 days after the date of Landlord’s Notice, Tenant
shall be deemed to have waived its rights under this Section 4.15 with respect
to the Expansion Space, Landlord shall have the absolute right to lease the
Expansion Space to any other person or entity and Tenant shall have no further
rights with respect to the Expansion Space. Notwithstanding anything to the
contrary contained in this subsection (A), if the existing tenant which
occupies the balance of the 46th Floor executes an early termination agreement
with Landlord to surrender a portion of its 46th floor premises, Landlord agrees to provide a
right of first offer as to the 46th floor space surrendered to Landlord, and a
subsequent right of first offer as to the remaining 46th floor space occupied by such tenant, as and
when such space becomes available, but in either instance, subject to the
applicable terms and provisions hereof.

(B)           The
annual Base Rent payable by Tenant for the Expansion Space shall be the fair
market rental value of the Expansion Space. Immediately after the exercise by
Tenant of its right of first offer under Subsection (A) above, Landlord and
Tenant shall use their best efforts to agree upon the fair market rental value
of the Expansion Space (exclusive of electricity charges). For the purposes of
this Lease, the “fair market rental value” of the Expansion Space shall mean
the annual rental value for comparable office space for comparable office
buildings in Downtown Manhattan, taking all relevant factors into
consideration. In the event Landlord and Tenant cannot reach agreement within
thirty (30) days after the date of Tenant’s exercise of its option, Landlord
and Tenant shall confer and appoint a reputable, qualified, licensed real
estate broker having an office in the county in which the Building is located
and is familiar with the rentals then being charged in the Building and in
comparable buildings and who has at least 10 years’ experience (the “Independent
Broker”). Upon the failure of Landlord and Tenant to agree upon the designation
of the Independent Broker, then upon ten (10) days’ notice, either party may
apply to the Supreme Court in the county in which the Building is located to
appoint the Independent Broker. Concurrently with such appointment, Landlord
and Tenant shall each submit a letter to the Independent Broker, with a copy to
the other, setting forth their respective estimates of the fair market rental
value of the Expansion Space, taking into consideration the duration of the
Term and all other terms and conditions of this Lease which are applicable to
the Expansion Space (respectively, “Landlord’s Letter” and “Tenant’s Letter”).
The Independent Broker shall determine the fair market rental value of the
Expansion Space and shall choose the fair market rental value set forth in
either Landlord’s Letter or Tenant’s Letter to be the Base Rent for the
Expansion Space during the applicable Term. The fees and expenses of the
Independent Broker and all costs incurred in connection with the appointment of
the Independent Broker shall be shared equally by Landlord and Tenant.

(C)           Within
ten (10) business days after the determination of the Base Rent for the
Expansion Space, Landlord and Tenant shall enter into an amendment of this
Lease reasonably satisfactory to Landlord and Tenant to provide for (i) the
inclusion of the Expansion Space in the Premises, (ii) an increase in the Base
Rent by the fair market rental value of the Expansion Space, (iii) an increase
in Tenant’s Proportionate Share to reflect the inclusion of the Expansion Space
in the Premises. In all other respects, the terms and conditions contained in
this Lease (including escalations and base years) shall remain unmodified. In
the event Tenant shall have exercised its right of first offer on the Expansion
Space and Tenant shall not have executed an amendment of this Lease within
twenty (20) days after Landlord’s delivery of execution counterparts thereof,
Tenant shall be deemed to have waived its rights with respect to the Expansion
Space, Landlord shall have the absolute right to lease the Expansion Space to
any other person or entity and Tenant shall have no further rights with respect
to the Expansion Space. Notwithstanding Tenant’s exercise of its right to lease
the Expansion Space pursuant to the terms of this Section 4.15, Landlord shall
not be obligated to deliver possession of the Expansion Space to Tenant if,
prior to delivery of possession of the Expansion Space, Tenant shall be in
default hereunder beyond any applicable notice and grace period, in which event
the rights of Tenant hereunder shall terminate and be of no further force or
effect. Notwithstanding anything to the contrary, Tenant’s rights under this
Section 4.15 are personal to the Tenant named herein and may not be exercised
by any permitted successor, assign or subtenant of the Premises, except for
permitted successors under the provisions of subsections 4.01(M) and 4.01(N)
hereof.

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ARTICLE 5

Landlord’s Covenants And
Rights

Section 5.01 Quiet Enjoyment
and Subordination.

(A)          Landlord
covenants and agrees that, upon performance by Tenant of all of the terms,
covenants, obligations, conditions and provisions hereof on Tenant’s part to be
kept and performed, Tenant shall have, hold and enjoy the Premises, subject and
subordinate to the terms and conditions of this Lease.

(B)           This
Lease is subject and subordinate to any reciprocal easement agreements or any
other easements (each, an “Easement”); all ground or underlying leases (each, a
“Superior Lease”); any mortgage, deed of trust or deed to secure debt (each, a “Mortgage”);
and to any renewals, modifications, increases, extensions, replacements, and
substitutions and advances made thereunder of any thereof now or hereafter
affecting the Premises and/or the Building. This provision shall be
self-operative and no further instrument of subordination shall be required;
provided, however, that Tenant agrees to execute and deliver, upon request,
such further instrument(s) in recordable form confirming this subordination as
may be reasonably requested by Landlord, or the holder of any Mortgage or the
lessor under any Superior Lease. Notwithstanding anything to the contrary
contained herein, at the option of the holder of any Mortgage, this Lease shall
be made superior to such Mortgage by the insertion therein of a declaration
that this Lease is superior. If, in connection with the financing of the
Property, the Office Building or the interest of the lessee under any Superior
Lease, any lending institution shall request reasonable modifications of this
Lease that do not materially increase the obligations or materially and
adversely affect the rights of Tenant under this Lease, Tenant covenants to
make such modifications. If at any time prior to the expiration of the Term,
any Mortgage shall be foreclosed or any Superior Lease shall terminate or be
terminated for any reason, Tenant agrees, at the election and upon demand of
any owner of the Building, or the lessor under any such Superior Lease, or of
any mortgagee in possession of the Building, to attorn, from time to time, to
any such owner, lessor or mortgagee, upon the then executory terms and
conditions of this Lease, for the remainder of the term originally demised in
this Lease, provided that such owner, lessor or mortgagee, as the case may be,
or receiver caused to be appointed by any of the foregoing, shall not then be
entitled to possession of the Premises. The provisions herein shall inure to
the benefit of any such owner, lessor or mortgagee, shall apply notwithstanding
that, as a matter of law, this Lease may terminate upon the termination of any
such Superior Lease, and shall be self-operative upon any such demand, and no
further instrument shall be required to give effect to said provisions. Tenant,
however, upon demand of any such owner, lessor or mortgagee, agrees to execute,
from time to time, instruments in confirmation of the foregoing provisions,
satisfactory to any such owner, lessor or mortgagee, acknowledging such
attornment and setting forth the terms and conditions of its tenancy. Nothing
contained herein shall be construed to impair any right otherwise exercisable
by any such owner, lessor or mortgagee.

(C)           Landlord
shall obtain a non-disturbance agreement from the holder of any Mortgage now or
hereafter encumbering the Building or from the lessor under any Superior Lease
now or hereafter affecting the Building in the form annexed hereto as Exhibit
I or in the standard form of any such holder or lessor which shall provide
in substance that so long as Tenant is not in default under this Lease beyond
any applicable notice and grace period (a) Tenant shall not be joined as a
party defendant (unless required by applicable law) (i) in any action or
proceeding which may be instituted or taken by any lessor under a Superior
Lease for the purpose of terminating the Superior Lease by reason of any
default thereunder or (ii) in any foreclosure action or proceeding which may be
instituted by the holder of a Mortgage, and (b) Tenant shall not be evicted from
the Premises, nor shall Tenant’s leasehold estate or right to possession of the
Premises be terminated or disturbed by reason of any default under any Superior
Lease or Mortgage. Landlord shall obtain the non-disturbance agreement from the
holder of the existing Mortgage promptly after the mutual execution and
delivery of this Lease. Any non-disturbance agreement may also provide that
Tenant will, at the option of the holder of any Mortgage or the lessor under
any Superior Lease, either (i) attorn to such holder or lessor and perform for
its benefit all the terms, covenants and conditions to be performed by Tenant
under this Lease with the same force and effect as if the lessor or holder were
the Landlord originally named in this Lease or (ii) enter into a new lease with
the lessor

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under the Superior Lease or the holder of any Mortgage
or their respective successors or assigns for the balance of the Term on the
same terms and conditions as contained in this Lease. Landlord’s failure to
obtain a non-disturbance agreement from the holder of any future Mortgage or
lessor under a Superior Lease encumbering the Building shall not relieve or
release Tenant from any of its obligations under this Lease; provided, however
that the subordination of this Lease to the interest of a lessor under a
Superior Lease or the holder of a Mortgage is conditioned upon Tenant’s and
such holder entering into a non-disturbance agreement in form and substance
substantially similar to Exhibit I annexed hereto.

Section 5.02 Landlord’s
Services and Repair Obligations.

(A)          During
the Term, Landlord shall operate and maintain the Building in accordance with
all applicable laws and regulations and the standards for a first-class office
building in Downtown Manhattan including building lobby security services
customarily provided in such buildings. Tenant shall have access to the
Premises on a 24/7 basis, subject to the terms and conditions of this Lease and
the Rules and Regulations in effect from time to time. Landlord shall provide
the following services:

(1)                     Services
To Premises: Landlord shall provide to the Premises:

Heating/Air Conditioning. Heating
and air conditioning in accordance with the specifications set forth on Exhibit
J, during the usual and customary business hours of 8:00 a.m. to 6:00 p.m.,
Monday through Friday. Saturday, Sunday, legal holidays, union holidays and any
hours other than those set forth herein shall not be deemed usual and customary
business hours, and such service will be provided at these times only if Tenant
shall request same not later than twenty-four (24) hours preceding the end of
the last business day prior to the need for such services, provided Landlord
shall use reasonable efforts to accommodate Tenant’s request for after hours
HVAC up to 12 noon on any business day. Tenant shall pay for such services, as
Additional Rent, within ten (10) days after rendition of a bill therefor, at
the standard rate for such services at the Building as determined by Landlord
from time to time. Any such charge shall be subject to a minimum usage fee
based upon the minimum overtime labor which must be employed by Landlord
pursuant to any labor agreements affecting the provision of services to the
Building. In the event Tenant installs a new supplemental air cooling system in
the Premises as part of Tenant’s Initial Alteration not to exceed a capacity of
9.5 tons, Tenant shall pay Landlord’s usual and customary charges including a
one-time tap-in fee of $5,000 and condenser water charges which are presently
$650 per ton per annum. Landlord’s standard rates for after-hours HVAC are
$693/hour subject to 4 hour minimum usage on Saturdays, Sundays and holidays
which rates and terms are subject to change by Landlord from time to time. The
furnishing of such additional heating and air conditioning services are
conveniences and are not and shall not be deemed to be appurtenances to the
Premises, and the failure of Landlord to furnish any or all of such services
shall not constitute or give rise to any claim of an actual or constructive
eviction, in whole or in part, or entitle Tenant to any abatement or diminution
of Base Rent, or relieve Tenant from any of its obligations under this Lease,
or impose any liability upon Landlord or its agents by reason of inconvenience
or annoyance to Tenant, or injury to or interruption of Tenant’s business or
otherwise. If one or more tenants utilizing the same system as Tenant requests
the same additional services as Tenant, the charge to Tenant shall be adjusted
pro rata. Tenant agrees to keep and cause to be kept closed all of the windows
in the Premises whenever the air conditioning system is in operation and agrees
to lower and close the blinds when necessary because of the sun’s position
whenever the air conditioning system is in operation. Tenant at all times
agrees to cooperate fully with Landlord and to abide by the regulations and
requirements which Landlord may prescribe for the proper functioning and
protection of the air conditioning system. Landlord, throughout the Term, shall
have free access to any and all mechanical installations of Landlord, including
but not limited to air conditioning, fan, ventilating, machine rooms and
electrical closets. Landlord and Tenant hereby acknowledge that the Premises
located on the 48th floor of the Building shall have a total of 28
tons of supplemental air cooling capacity

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available (i.e. 13 tons of supplemental air cooling
capacity presently serving the Existing Premises located on the 48th floor and 15 tons of supplemental air cooling
capacity in the Additional Premises which is comprised of the existing 5.5 ton
supplemental air cooling unit in the Additional Premises plus an additional 9.5
tons of supplemental of air cooling capacity specified above). Furthermore,
Landlord acknowledges that Tenant shall be permitted to maintain the current
tonnage of supplemental air cooling capacity presently serving the Existing
Premises located on the 47th floor of the Building.

Electricity. Electrical energy to
the Premises pursuant to the provisions of Section 4.06.

Cleaning. Office cleaning services
in accordance with the cleaning specifications attached hereto as Exhibit K,
as same shall be amended from time to time. Tenant shall permit Landlord, its
cleaning contractor and their employees access to the Premises after 5:00 P.M.
and before 8:00 A.M. to perform such cleaning services and shall provide,
without charge, all light, electricity and water in the Premises reasonably
required to perform such cleaning services. Tenant shall pay to Landlord the
cost of removal of any of Tenant’s refuse and rubbish from the Premises and the
Building to the extent such refuse and rubbish is in excess of that resulting
from general office use. Bills for the removal of such refuse and rubbish shall
be due and payable within ten (10) days after rendition by Landlord.

(2)                     Services
To Office Building: Landlord shall provide in the Office Building:

Hot and cold water for core lavatory, pantry and
cleaning purposes only, at those points of supply provided for the general use
of tenants in the Office Building. If Tenant requires, uses or consumes water
for any purpose in addition to ordinary drinking, cleaning or lavatory
purposes, Landlord may install a water meter and thereby measure Tenant’s water
consumption for all purposes. In such event (i) Tenant shall pay Landlord for
the cost of the meter and the installation thereof; (ii) Tenant shall keep such
meter and related equipment in good working order and repair, at Tenant’s cost
and expense, in default of which Landlord may cause such meter and related
equipment to be replaced or repaired as required and may collect the cost
thereof from Tenant; (iii) Tenant agrees to pay for water consumed, as shown on
such meter as and when bills are rendered, and upon default in making such
payment Landlord may pay such charges and collect the same from Tenant; and
(iv) Tenant covenants and agrees to pay the sewer rent or charge or any other
tax, rent or levy which may now or hereafter be assessed or imposed or become a
lien upon the Premises or the Building or the Property pursuant to law, order
or regulation made or issued in connection with any such metered use,
consumption, maintenance or supply of water, water system, or sewage or sewage
connection or system. The bill rendered by Landlord shall be based upon Tenant’s
consumption and shall be payable by Tenant within ten (10) days after
rendition.

Elevators. Passenger elevator
facilities during the usual and customary business hours of 8:00 a.m. to 6:00
p.m., Monday through Friday. Landlord shall have one passenger elevator
servicing the Premises available at all other times. Landlord shall provide
freight elevator services on an “as available” basis for use by Tenant upon
arrangement with the building manager and Tenant shall pay all building standard
charges therefor. Notwithstanding the foregoing, Tenant shall be permitted to
utilize the designated freight elevator during Tenant’s Initial Alteration
during regular business hours at no additional charge. In addition, Tenant
shall not be charged for overtime freight elevator during regular business
hours during its initial move-in to the Premises after completion of Tenant’s
Initial Alteration. Landlord shall also provide Tenant with up to 5 hours of
overtime freight elevator usage for Tenant’s move into the Premises free of
charge.

(B)           Landlord
shall maintain and repair the foundations, structure and roof of the Office
Building and shall operate, maintain, repair and replace the systems,
facilities and equipment directly necessary for the provision by

 35
 

 

Landlord of the services described in this Section
5.02 and Section 4.07 hereof (unless same are installed by or are the property
of Tenant); provided, that:

(i)          Landlord shall only be required to
maintain such services as are reasonably possible under the circumstances in
the event all or any part of such systems, facilities and equipment are
destroyed, damaged or impaired until completion of the necessary repair or
replacement;

(ii)         Subject to the provisions of Section
5.05 hereof, Landlord may temporarily discontinue any services at such times as
may be necessary or advisable due to causes beyond the reasonable control of
Landlord or for purposes of maintenance, repair, replacement, testing or
examination;

(iii)        Landlord shall use reasonable diligence in
carrying out its obligations under this Section 5.02, but shall not be liable
under any circumstances for any damages (including consequential damages) to
any person or property for any failure to do so;

(iv)       Except as otherwise provided in Section
5.02(C) and Section 6.02 hereof, no reduction or discontinuance of the services
described in this Section 5.02 shall be construed as an eviction of Tenant or
release Tenant from any of its obligations under this Lease and there shall be
no allowance to Tenant for a diminution of rental value and no liability on the
part of Landlord by reason of inconvenience, annoyance or injury to business
arising from Landlord, Tenant or others making, or failing to make, any
repairs, alterations, additions or improvements in or to any portion of the
Building, or the Premises, or in or to fixtures, appurtenances, or equipment
thereof;

(v)        Landlord shall have no liability to
Tenant, its employees, agents, invitees or licensees for damages or
consequential damages or in any other way for losses due to any criminal act or
for damages done by unauthorized persons on the Premises or in the Building,
and Landlord shall not be required to insure against any such losses. Tenant
shall cooperate fully in Landlord’s efforts to maintain security in the
Building and shall follow all regulations promulgated by Landlord with respect
thereto; and

(vi)       Tenant shall reimburse Landlord, upon
demand, for the entire cost of any repairs or maintenance performed by Landlord
in accordance with the terms hereof if the need for same arose as a result of
the negligence or criminal or willful misconduct of Tenant or its agents,
employees, contractors, invitees and licensees.

Notwithstanding anything to the contrary contained in
this Section 5.02 or elsewhere in this Lease, in the event there is an
interruption of the Essential Services (as hereinafter defined) to the
Premises, which continues for a period of five (5) consecutive days or more,
and such interruption of Essential Services results in the denial to Tenant of
reasonable means of access to the Premises or renders impossible or impractical
the intended use of substantially all of the Premises and Tenant ceases to
conduct its business from the Premises, Tenant shall be entitled to an
abatement of Base Rent for the period of such interruption until such Essential
Services are restored. The foregoing provisions shall not apply in the event
the Premises are damaged (or access to the Premises is prohibited) as a result
of a fire or other casualty or condemnation, in which event Section 6.01 and
Section 6.02, respectively, shall govern. In addition, the foregoing abatement
provisions shall not apply if the interruption of Essential Services is the
result of a force majeure event as described in Section 9.11 hereof. For the
purposes hereof, the term “Essential Services” shall mean the heating and air
conditioning systems, passenger elevators, access to and use of restroom
facilities in the Building (it being understood that such restroom facilities
need not be located on the 47th or 48th floor of the Building) and electricity
supplied to the Premises

Tenant shall give Landlord prompt notice of any
defective condition in any plumbing, electrical, air-cooling or heating system
located in, servicing or passing through the Premises.

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Section 5.03 Alterations
by Landlord.

(A)          Landlord may from time to time:

(i)          Make repairs, replacements, changes or
additions to the structure, systems, facilities and equipment in the Premises
where necessary to service the Premises or other parts of the Building;

(ii)         Make changes in or additions to any
part of the Building not in or forming part of the Premises; and

(iii)        Change or alter the location of any
areas of the Building which may, from time to time, be designated by Landlord
for use during normal business hours by Tenant in common with other tenants and
persons in the Office Building but under the exclusive control of Landlord; and

(iv)       Reduce the size of the Premises to a de
minimus extent in order to comply with applicable laws so long as Tenant’s
use of the Premises is not materially or adversely affected.

(B)                  In
connection therewith, Landlord and/or its representatives may enter the
Premises upon reasonable prior notice (which may be telephonic) and
other areas of the Building with such materials as Landlord may deem necessary, and may erect scaffolding and all other
necessary structures in or about the Building. Tenant waives and releases any claims for damage including loss
of business resulting therefrom.

Section 5.04 Entry
by Landlord.

(A)          Landlord and Landlord’s agents and representatives
shall have the right to enter the Premises at any time in case of an emergency,
and at all reasonable times upon reasonable prior notice (which may be
telephonic) for any purpose permitted
pursuant to the terms of this Lease, including, but not limited to, examining
the Premises; making such repairs or alterations therein as may be necessary or
appropriate in Landlord’s sole judgment for the safety and preservation thereof; erecting, installing, maintaining,
repairing or replacing wires, cables, conduits, vents, ducts, risers, pipes, HVAC equipment or plumbing equipment
running in, to, or through the Premises;
showing the Premises to prospective purchasers or mortgagees and, during the last
twelve (12) months of the Term,
prospective tenants.

(B)           Tenant shall give Landlord a key for all of the doors for
the Premises, excluding Tenant’s vaults, safes and files which keys shall be
coordinated with any building keying system and requirements adopted by
Landlord from time to time. Landlord shall have the right to use any and all
means to open the doors to the Premises in an emergency in order to obtain
entry thereto without liability to Tenant therefor. Any entry to the Premises
by Landlord by any of the foregoing means, or otherwise, shall not be construed
or deemed to be a forcible or unlawful entry into or a detainer of the
Premises, or an eviction, partial eviction or constructive eviction of Tenant
from the Premises or any portion thereof, and shall not relieve Tenant of its
obligations hereunder.

Section 5.05 Minimize
Interference. In
performing its covenants or exercising its rights of entry under this Article
5, Landlord shall use reasonable efforts to minimize interference with the conduct
of Tenant’s business in connection with the performance by Landlord of any work
or the provision of any services required or permitted pursuant to the terms of
this Lease, but Landlord shall not be required to use overtime or premium time
labor.

Section 5.06 Landlord’s
Right to Cure. All
agreements and provisions to be performed by Tenant under any of the
terms of this Lease shall be at Tenant’s sole cost and expense and without any
abatement of Base Rent or Additional Rent.
If Tenant shall fail to perform any act or to pay any sum of money (other than
Base Rent) required to be performed
or paid by it hereunder, or shall fail to cure any default and such failure
shall continue beyond any applicable notice and grace period set forth
herein, then Landlord may, at its option, and without waiving or releasing Tenant from any of its obligations hereunder, make
such payment or perform such act on

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behalf of Tenant. All sums paid and all costs incurred
by Landlord in taking such action shall be deemed Additional Rent and shall be paid to Landlord on demand.

ARTICLE 6

Eminent Domain, Casualty,
Hazardous Materials

Section 6.01 Eminent
Domain.

(A)          If,
during the Term, all of the Premises shall be taken (or temporarily taken for a
period of one (1) year or more) by a public authority under any statute or by
right of eminent domain, or purchased under threat of such taking, this Lease
shall automatically terminate on the date on which the condemning authority
takes possession of the Premises (“Date of Such Taking”).

(B)           If,
during the Term, part of the Building is so taken or purchased, and if, in the
reasonable opinion of Landlord, substantial alteration or reconstruction of the
Building is necessary or desirable as a result thereof, whether or not the
Premises are or may be affected, Landlord shall have the right to terminate
this Lease by giving Tenant at least thirty (30) days written notice of such
termination, and thereupon this Lease shall terminate on the date set forth in
such notice.

(C)           Notwithstanding
the foregoing, if more than one-third (1/3) of the number of rentable square
feet in the Premises is so taken or purchased, Tenant shall have the right to
terminate this Lease by giving Landlord notice no later than thirty (30) days
after the Date of Such Taking, and thereupon this Lease shall terminate on the
last day of the month following the month in which notice is given.

(D)          Tenant
shall immediately surrender to Landlord the Premises and all interests therein
under this Lease on any such date of termination under this Section 6.01.
Landlord may re-enter and take possession of the Premises and remove Tenant
therefrom if necessary, and in the event of a termination under this Section
6.01 the Base Rent and Additional Rent shall abate on the later of the date of
termination or the Date of Such Taking. After such termination, and on notice
from Landlord stating the Base Rent and Additional Rent then owing, Tenant
shall forthwith pay Landlord such amounts.

(E)           If
a portion of the Premises is so taken, and no rights of termination herein
conferred are timely exercised, the Term of this Lease shall expire with
respect to the portion so taken on the Date of Such Taking. In such event the
Base Rent and Additional Rent with respect to such portion so taken shall abate
on such date or on such later date as Tenant shall deliver possession thereof,
and the Base Rent and Additional Rent thereafter payable with respect to the
remainder of the Premises shall be adjusted pro rata by Landlord in order to
account for the reduction in the number of rentable square feet in the
Premises. Landlord shall restore and redemise the Premises to the extent
required to exclude from the Premises that portion thereof so taken; provided,
however, that Landlord’s obligation to restore and redemise shall be limited to
the funds available to Landlord from the condemnation award or other
consideration paid for the affected portion of the Premises. Landlord’s
obligation in connection with such restoration shall be limited to the basic
building area and in no event shall Landlord be obligated to replace, repair or
restore any improvements to the Premises or alterations thereof installed
therein by or on behalf of Tenant, nor shall Landlord be obligated, in any
event whatsoever, to replace, repair or restore Tenant’s leasehold
improvements, personal property, furniture, fixtures, equipment or the like.

(F)           Upon
any such taking or purchase, Landlord shall be entitled to receive and retain
the entire award or consideration for the affected portion of the Building, and
Tenant shall not have or advance any claim against Landlord for the value of
its property or its leasehold estate or the unexpired Term of the Lease, or for
costs of removal or relocation, or business interruption expense or any other
damages arising out of such taking or purchase. Nothing herein shall give
Landlord any interest in or preclude Tenant from seeking and recovering for its
own account from the condemning authority any award or compensation
attributable to the taking or purchase of Tenant’s improvements, chattels or
trade fixtures, or the removal or relocation of its business and effects, or
the

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interruption of its business; provided that any such
award or compensation shall not reduce the amount of the award otherwise
payable to Landlord. If any such award made or compensation paid to either
party specifically includes an award or
amount for the other, the party first receiving the same shall promptly account
therefor to the other.

(G)           If
all or any portion of the Premises shall be condemned or taken for governmental
occupancy for a period of less than one year, this Lease shall continue in full
force and effect and Tenant shall continue to pay in full all Base Rent and
Additional Rent herein reserved, without reduction or abatement, and Tenant
shall be entitled to receive, for itself, so much of any award or payment made
for such use as is equal to the payments that are actually made by Tenant to
Landlord during such temporary taking, and Landlord shall receive the balance
thereof.

Section 6.02 Damage
by Fire or Other Casualty.

(A)          If
the Premises shall be damaged by fire or other casualty, then the damage shall
be repaired, except as otherwise provided in this Section 6.02, by and at the
expense of Landlord with reasonable promptness; provided, however, that
Landlord’s obligation to restore (i) shall be limited to the amount of funds
available to Landlord from any casualty insurance policy proceeds actually paid
to Landlord for such repair work and (ii) shall at all times be subject to
obtaining all necessary approvals from all applicable governmental entities,
the lessor under any Superior Lease and the holder of any Mortgage and the
willingness of such lessor or such holder to make the proceeds of casualty
insurance policies available to Landlord for such purposes. Landlord shall not
be liable for any delay (whether or not within the reasonable control of
Landlord) in the completion of the repair and restoration of the Premises. Base
Rent shall be abated from the date the Premises are damaged through the date
the damage shall be repaired.

(B)           If the Premises are totally damaged
or rendered wholly untenantable by fire or other casualty, or if Landlord’s
architect certifies that it cannot be repaired within one hundred eighty (180)
days after the casualty, or if all or any portion of the proceeds of any
insurance policy are retained by the lessor under any Superior Lease or the
holder of any Mortgage, or if Landlord shall decide not to repair the Building,
or shall decide to demolish the Building or not to rebuild it (whether or not
the Premises are affected) and provided leases comprising not less than
one-third of the rentable space in the Building are similarly terminated, then
Landlord may, within ninety (90) days after such fire or other casualty, give
Tenant notice of termination of this Lease, and thereupon the Term shall expire
thirty (30) days after such notice is given, and Tenant shall vacate the
Premises and surrender same to Landlord.

(C)           If
Landlord does not substantially complete the repair and restoration of the
Premises within twelve (12) months from the date of such fire or other
casualty, Tenant shall have the right to cancel and terminate this Lease upon
delivery of notice to Landlord delivered not more than twenty (20) days after
the expiration of such twelve (12) month period.

(D)          The
parties agree that this Section 6.02 constitutes an express agreement governing
any case of damage or destruction of the Premises or the Building by fire or
other casualty, and that Section 227 of the Real Property Law of the State of
New York, which provides for such contingency in the absence of an express
agreement, and any other law of like import now or hereafter in force shall
have no application in any such case.

(E) Landlord’s obligations in connection with such
repair and/or restoration work shall and are hereby strictly limited to the
replacement of the basic building area as demised by Landlord to Tenant as of
the Commencement Date, and in no event shall Landlord be obligated to replace,
repair or restore any improvements to the Premises or any alterations thereof
which were installed therein by or on behalf of Tenant, nor shall Landlord be
obligated to replace, repair, or restore Tenant’s leasehold improvements,
personal property, furniture, fixtures, equipment or the like. Tenant shall
repair or replace, at its sole cost and expense, Tenant’s own improvements,
furniture, furnishings, trade fixtures and equipment.

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(F)           Tenant
shall give prompt written notice to Landlord of any damage caused to the
Premises by fire or other casualty.

Section 6.03 Subrogation. Notwithstanding
anything to the contrary contained herein, Landlord and Tenant hereby mutually
waive and release their respective rights of recovery against one another and
their officers, agents and employees for any damage to real or personal
property, including resulting loss of use, interruption of business, and other
expenses occurring as a result of the use or occupancy of the Premises or the
Building to the extent of insurance coverage which would be included in a
standard “all-risk” or special form policy of property insurance. Landlord and
Tenant agree that all policies of insurance obtained by them pursuant to the
terms of this Lease shall contain provisions or endorsements thereto waiving
the insurer’s rights of subrogation with respect to claims against the other,
and, unless the policies permit waiver of subrogation without notice to the
insurer, each shall notify its insurance companies of the existence of the
waiver and indemnity provisions set forth in this Lease.

Section 6.04 Hazardous Materials.

(A)          During
the term of this Lease, Tenant shall comply with all Environmental Laws and
Environmental Permits (each as defined in subsection 6.04 (D) hereof)
applicable to the operation or use of the Premises, shall cause all other
persons occupying or using the Premises to comply with all such Environmental
Laws and Environmental Permits, shall immediately pay all costs and expenses
incurred by reason of such compliance, and shall obtain and renew all
Environmental Permits required for operation or use of the Premises. Tenant
will not generate, use, treat, store, handle, release or dispose of, or permit
the generation, use, treatment, storage, handling, release or disposal, of Hazardous
Materials (as defined in subsection 6.04 (D) hereof) on the Premises, the
Building or the Property or transport or permit the transportation of Hazardous
Materials to or from the Premises, the Building or the Property except for
limited quantities used or stored at the Premises and required in connection
with the routine operation and maintenance of the Premises, and then only in
compliance with all applicable Environmental Laws and Environmental Permits.

(B)           Tenant
will immediately advise Landlord in writing of any of the following: (i) any
pending or threatened Environmental Claim (as defined in subsection (D) below)
against Tenant relating to the Premises, the Building or the Property; (ii) any
condition or occurrence on the Premises, the Building or the Property that (a)
results in noncompliance by Tenant with any applicable Environmental Law, or
(b) could reasonably be anticipated to form the basis of an Environmental Claim
against Tenant and/or Landlord or the Premises and (iii) the actual or anticipated
taking of any removal or remedial action in response to the actual or alleged
presence of any Hazardous Material on the Premises, in the Building or on the
Property. All such notices shall describe in reasonable detail the nature of
the claim, investigation, condition, occurrence or removal or remedial action
and Tenant’s response thereto. In addition, Tenant will provide Landlord with
copies of all communications regarding the Premises with any government or
governmental agency relating to Environmental Laws, all such communications
with any person relating to Environmental Claims, and such detailed reports of
any such Environmental Claim as may reasonably be requested by Landlord. At any
time and from time to time during the term of this Lease, and at Landlord’s
sole cost and expense, Landlord or its agents may perform an environmental
inspection of the Premises, and Tenant hereby grants to Landlord and its agents
access to the Premises to undertake such an inspection.

(C)           Tenant
agrees to defend, indemnify and hold harmless the Indemnitees from and against
all obligations (including removal and remedial actions), losses, claims,
suits, judgments, liabilities, penalties (including, by way of illustration and
not by way of limitation, civil fines), damages (including consequential and
punitive damages), costs and expenses (including attorneys’ and consultants’
fees and expenses) of any kind or nature whatsoever that may at any time be
incurred by, imposed on or asserted against such Indemnitees directly or
indirectly based on, or arising or resulting from (i) the presence of Hazardous
Materials on the Premises, in the Building or on the Property which is caused
or permitted by Tenant and/or (ii) any Environmental Claim relating in any way
to Tenant’s operation or use of the Premises, the Building or the Property. The
provisions of this Section shall survive the termination of this Lease.

 40
 

 

(D)          (1)           “Hazardous Materials” means
(a) petroleum or petroleum products, natural or synthetic gas, asbestos in any
form, urea formaldehyde foam insulation, and radon gas; (b) any substances
defined as or included in the definition of “hazardous substances,” “hazardous
wastes,” “hazardous materials,” “extremely hazardous wastes,” “restricted
hazardous wastes,” “toxic substances,” “toxic pollutants,” “contaminants” or “pollutants,”
or words of similar import, under any applicable Environmental Law; and (c) any
other substance exposure which is regulated by any governmental authority; (2) “Environmental
Law” means any federal, state or local statute, law, rule, regulation,
ordinance, code, policy or rule of common law now or hereafter in effect and in
each case as amended, and any judicial or administrative interpretation
thereof, including any judicial or administrative order, consent decree or
judgment, relating to the environment, health, safety or Hazardous Materials;
(3) “Environmental Claims” means any and all administrative, regulatory
or judicial actions, suits, demands, demand letters, claims, liens, notices of
non-compliance or violation, investigations, proceedings, consent orders or
consent agreements relating in any way to any Environmental Law or any
Environmental Permit, including without limitation (a) any and all
Environmental Claims by governmental or regulatory authorities for enforcement,
cleanup, removal, response, remedial or other actions or damages pursuant to
any applicable Environmental Law and/or (b) any and all Environmental Claims by
any third party seeking damages, contribution, indemnification, cost recovery,
compensation or injunctive relief resulting from Hazardous Materials or arising
from alleged injury or threat of injury to health, safety or the environment;
and (4) “Environmental Permits” means all permits, approvals,
identification numbers, licenses and other authorizations required under any
applicable Environmental Law.

ARTICLE 7

Events Of Default,
Remedies

Section 7.01 Events
of Default.

(A)          The
occurrence of any one or more of the following events during the Term (each,
individually, an “Event of Default” and collectively, “Events of Default”)
shall constitute a breach of this Lease by Tenant and Landlord may exercise the
rights set forth in Section 7.02 of this Lease or otherwise provided at law or
in equity:

(1)           Tenant
shall fail to pay any Base Rent or Additional Rent (or cure any other default
which is curable by the payment of money) by the date when the same shall
become due and payable and such failure continues for five (5) business days
following notice thereof; or (2) Tenant shall default in the performance of or
compliance with any of the other covenants, agreements, terms or conditions of
this Lease to be performed by Tenant (other than any default curable by the
payment of money), and, unless expressly provided elsewhere in this Lease that
no notice and/or opportunity to cure such default is to be afforded Tenant,
such default shall continue for a period of twenty (20) days after written
notice thereof from Landlord to Tenant, or, in the case of a default which
cannot with due diligence be cured within fifteen (15) days, Tenant fails to
commence such cure promptly within such twenty (20) day period and thereafter
diligently prosecute such cure to completion; or (3) Tenant shall become
insolvent within the meaning of the United States Bankruptcy Code, as amended
from time to time (the “Code”), or shall have ceased to pay its debts in the
ordinary course of business, or shall be unable to pay its debts as they become
due, or Tenant shall notify Landlord that it anticipates the occurrence of any
of the foregoing conditions; or (4) Tenant shall file, take any action to file,
or notify Landlord that Tenant intends to file, a petition, case or proceeding
under any section or chapter of the Code, or under any similar law or statute of
the United States or any state thereof relating to bankruptcy, insolvency,
reorganization, winding up or composition or adjustment of debts; or (5) Tenant
shall be adjudicated as a bankrupt or insolvent or consent to or file an answer
admitting or failing reasonably to contest the material allegations of a
petition filed against it in any such case or proceeding of the type described
in the preceding clause (4); or (6) Tenant shall seek to or consent to or
acquiesce in the appointment of any receiver, trustee, liquidator or other
custodian of Tenant or any material part of its properties, whether or not the
same shall relate to their interests in this Lease; or (7) Tenant shall make a
general assignment for the benefit of creditors; or

 41
 

 

take any other action for the purpose of effecting any
of the filings, actions, conditions or results described in clauses (3) through
(7) hereof; or (8) if, within ninety (90) days after the filing of an
involuntary petition in bankruptcy against Tenant or any Guarantor or the
commencement of any case or proceeding against Tenant seeking any
reorganization, composition, arrangement, liquidation, dissolution,
readjustment or similar relief under any law, such proceeding shall not have
been dismissed; or if, within ninety (90) days after the appointment, without
consent or acquiescence of Tenant, of any trustee, receiver or liquidator of
Tenant of all or any substantial part of the properties of Tenant, or of all or
any part of the Premises, such appointment shall not have been vacated or
stayed on appeal or otherwise; or if, within thirty (30) days after the
expiration of any such stay, such appointment shall not have been vacated; or
if, within thirty (30) days after the taking of possession without the consent
or acquiescence of Tenant, by any governmental office or agency pursuant to
statutory authority for the dissolution or liquidation of Tenant, such taking
shall not have been vacated or stayed on appeal or otherwise; or (9)
[Intentionally Deleted]; or (10) any execution or attachment is issued against
Tenant or any of its property whereupon the Premises shall be taken or occupied
or attached, or attempted to be taken or occupied or attached by someone other
than Tenant; or (11) a tax lien or a mechanic’s and/or materialmen’s lien is
filed against any property of Tenant, or Tenant does or permits to be done
anything which creates a lien upon the Premises or the Building and such lien
is not discharged by Tenant within thirty (30) days of the filing thereof.

(B)           If
any monetary Event of Default occurs more than two (2) times within any period
of twelve (12) months, then, notwithstanding that each such monetary Event of
Default shall have been cured, any further monetary default within the
succeeding eighteen (18) months shall be deemed an Event of Default for which
no notice or cure period shall apply.

Section 7.02 Remedies
upon Default.

(A)          Upon
the occurrence of any Event of Default, Landlord shall have the option to
pursue any one or more of the following remedies without notice or demand
whatsoever, in addition to, or in lieu of, any and all remedies available to
Landlord under the laws of the state in which the Building is located:

(1)           Landlord
may give Tenant written notice of its election to terminate this Lease,
effective on the date specified therein, whereupon Tenant’s right to possession
of the Premises shall cease and this Lease, except as to Tenant’s liability
determined in accordance with subsection 7.02(C) below, shall be terminated.

(2)           Landlord
and its agents may immediately re-enter and take possession of the Premises, or
any part thereof, either by summary proceedings, or by any other applicable
action or proceeding, or by force or otherwise (without being liable for
indictment, prosecution or damages therefor) and may repossess same as Landlord’s
former estate and expel Tenant and those claiming through or under Tenant, and
remove the effects of both or either, without being deemed guilty in any manner
of trespass, and without prejudice to any remedies for arrears of rent or
Tenant’s breach of covenants or conditions.

(3)           Should
Landlord elect to re-enter as provided hereinabove, or should Landlord take
possession pursuant to legal proceedings or pursuant to any notice provided by
law, Landlord may, from time to time, without terminating this Lease, relet the
Premises or any part thereof in Landlord’s or Tenant’s name, but for the
account of Tenant (subject to the provisions of subsection 7.02(B)), for such
term or terms (which may be greater or less than the period which would
otherwise have constituted the balance of the Term) and on such terms and
conditions (which may include concessions of free rent and alteration, repair
and improvement of the Premises) as Landlord, in its sole discretion, may
determine, and Landlord may collect and receive the rents therefor without
relieving Tenant of any liability under this Lease or otherwise affecting any
such liability. Landlord shall have no obligation to relet the Premises or any
part thereof and shall in no event be liable for refusal or failure to relet
the Premises or any part thereof, or, in the event of any such reletting, for
refusal or failure to collect any rent due upon such reletting, and no such
refusal or failure shall operate to relieve Tenant of any liability under this
Lease or otherwise to

 42
 

 

affect any such liability. No such re-entry or taking
possession of the Premises by Landlord shall be construed as an election on
Landlord’s part to terminate this Lease unless a written notice of such
intention be given to Tenant. No notice from Landlord hereunder or under a
forcible entry and detainer statute or similar law shall constitute an election
by Landlord to terminate this Lease unless such notice specifically so states.
Landlord reserves the right following any such re-entry and/or reletting to
exercise its right to terminate this Lease by giving Tenant written notice
thereof, in which event this Lease will terminate as specified in said notice.

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

(C)           (1)           In the event this Lease is terminated
in accordance with the provisions of subsection 7.02(A)(l), Tenant shall remain
liable to Landlord for damages in an amount equal to the Base Rent and
Additional Rent due hereunder as of the date of termination of this Lease plus
the Base Rent and Additional Rent which would have been owing by Tenant
hereunder for the balance of the Term (collectively, the “Aggregate Gross Rent”)
had this Lease not been terminated, less the net proceeds, if any, received as
a result of any reletting of the Premises by Landlord subsequent to such
termination, after deducting all of Landlord’s expenses including, without
limitation, all repossession costs, brokerage commissions, legal expenses,
attorneys’ fees, expenses of employees, alteration and repair costs and
expenses of preparation for such reletting (collectively, the “Reletting Costs”).
Landlord shall be entitled to collect Base Rent, Additional Rent and all other
damages from Tenant monthly on the days on which Base Rent and Additional Rent
would have been payable hereunder if this Lease had not been terminated.
Alternatively, at the option of Landlord, in the event this Lease is so
terminated, Landlord shall be entitled to recover forthwith against Tenant, as
liquidated damages and not as a penalty, the then value of the Aggregate Gross
Rent and Reletting Costs less the aggregate rental value of the Premises for
what otherwise would have been the unexpired balance of the Term. In the event
Landlord shall relet the Premises for the period which otherwise would have
constituted the unexpired portion of the Term (or any part thereof), the amount
of rent and other sums payable by the tenant thereunder shall be deemed prima
facie to be the rental value for the Premises (or the portion thereof so
relet) for the term of such reletting. Tenant shall in no event be entitled to
any rents collected or payable in respect of any reletting whether or not such
rents shall exceed the Base Rent and Additional Rent reserved in this Lease.

(2)           In
the event Landlord does not elect to terminate this Lease, but takes possession
as provided in subsection 7.02(A)(2), Tenant shall pay to Landlord the Base
Rent and Additional Rent as herein provided which would be payable hereunder if
such repossession had not occurred, less the net proceeds received by Landlord,
if any, of any reletting of the Premises by Landlord after deducting the
Reletting Costs to the extent not paid to Landlord pursuant to the following
sentence. Tenant shall pay rent and all other sums due to Landlord, monthly, on
the days on which Base Rent would have been payable hereunder if possession had
not been retaken.

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(D)          (1)           This Lease shall continue in effect
for so long as Landlord does not terminate Tenant’s right to possession, and
Landlord may enforce all its rights and remedies under this Lease, including
the right to recover the Base Rent and Additional Rent, as the same become due
under this Lease. Acts of maintenance or preservation or efforts to relet the
Premises or the appointment of a receiver upon the initiative of Landlord to
protect Landlord’s interest under this Lease shall not constitute a termination
of Tenant’s rights to possession unless Landlord shall have specifically
elected to terminate this Lease as provided in subsection 7.02(A).

(2)           No
payments of money by Tenant to Landlord after the expiration or other
termination of this Lease after the giving of any notice by Landlord to Tenant
shall reinstate or extend the Term, or make ineffective any notice given to
Tenant prior to the payment of such money. After the service of notice or the
commencement of a suit, or after final judgment granting Landlord possession of
the Premises, Landlord may receive and collect any sums due under this Lease,
and the payment thereof shall not make ineffective any notice, or in any manner
affect any pending suit or any judgment theretofore obtained.

Section 7.03 Bankruptcy.

(A)          Landlord
and Tenant understand that, notwithstanding certain provisions to the contrary
contained herein, a trustee or debtor in possession under the Code may have
certain rights to assume or assign this Lease. Landlord and Tenant further
understand that, in any event, Landlord is entitled under the Code to adequate
assurances of future performance of the terms and provisions of this Lease. The
parties hereto agree that, with respect to any such assumption or assignment,
the term “adequate assurance” shall include at least the following:

(1)           In
order to assure Landlord that the proposed assignee will have the resources
with which to pay all Base Rent and Additional Rent payable pursuant to the
terms hereof, any proposed assignee must have, as demonstrated to Landlord’s
satisfaction, a net worth (as defined in accordance with generally accepted
accounting principles consistently applied) of not less than the net worth of
Tenant on the date this Lease became effective, increased by seven percent
(7%), compounded annually, for each year from the Commencement Date through the
date of the proposed assignment. The financial condition and resources of
Tenant were a material inducement to Landlord in entering into this Lease.

(2)           Any
proposed assignee must have been engaged in the conduct of business for the
five (5) years prior to any such proposed assignment, which business does not
violate the Permitted Uses, and such proposed assignee shall continue to engage
in the Permitted Uses. Landlord’s asset will be substantially impaired if the
trustee in bankruptcy or any assignee of this Lease makes any use of the
Premises other than the Permitted Uses.

(3)           Any
proposed assignee of this Lease must assume and agree to be personally bound by
the terms, covenants and provisions of this Lease.

ARTICLE 8

Security Deposit

Section 8.01 Security
Deposit.

(A)          Concurrently
with the execution of this Lease, Tenant shall deposit the Letter of Credit (as
defined in Section 8.01(B) hereof) with Landlord as the Security Deposit, as
security for the payment by Tenant of all Base Rent and Additional Rent and for
the faithful performance of all the terms, covenants and conditions hereof.
Landlord shall not be required to segregate the Security Deposit from other
deposits or from other funds of Landlord or pay interest thereon, unless
required by applicable law. If, at any time during the Term, Tenant does not
fulfill any of its obligations under this Lease, Landlord shall have the right
to use the Security Deposit, or so much thereof as necessary, on account of
such obligations including, without limitation, any damages to which Landlord
is entitled pursuant to Section 7.02 hereof. If any portion of the Security
Deposit is used, applied, or

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retained by Landlord as herein permitted, then within
five (5) days after written demand therefor, Tenant shall deposit with Landlord
an amount sufficient to restore the Security Deposit to its original or
adjusted amount, and Tenant’s failure to do so shall be a breach of this Lease.
If Tenant fully and faithfully performs every term, covenant, condition and
obligation of this Lease during the Term, the Security Deposit (or any balance
thereof), without interest, shall be returned to Tenant after the expiration of
the Term. Landlord may deliver the Security Deposit to any purchaser of
Landlord’s interest in the Premises if such interest is sold, in which event
Landlord shall be discharged from any further liability with respect to the
Security Deposit. The Security Deposit shall not be construed as liquidated
damages, and if Landlord’s claims hereunder exceed the Security Deposit, Tenant
shall remain liable for the balance of such claims. Tenant further covenants
that it will not assign or encumber or attempt to assign or encumber the
Security Deposit and that Landlord shall not be bound by any such assignment,
encumbrance, attempted assignment or attempted encumbrance.

(B)           Upon
the execution of this Lease, Tenant shall deposit with Landlord a clean,
irrevocable letter of credit issued by a bank which is a member of the New York
Clearinghouse Association and which is acceptable to Landlord in its reasonable
judgment in the amount of $2,655,172.00 in the form annexed hereto as Exhibit C (the “Letter of Credit”). At any
time that Tenant is in default under this Lease beyond any applicable notice
and grace period, Landlord shall have the right to draw down the entire Letter
of Credit and apply the proceeds or any part thereof in accordance with the
provisions of this Section 8.01. Landlord shall also have the right to draw
down the entire Letter of Credit in the event Landlord receives notice that the
date of expiry of the Letter of Credit will not be extended by the issuing
bank, or, if the Letter of Credit does not provide for automatic one-year
extensions of the term of such Letter of Credit, and in either case, in the
event a replacement letter of credit, issued in accordance with this Lease in
form satisfactory to Landlord, is not delivered at least thirty (30) days
before the expiration of the Letter of Credit which is then held by Landlord.
If Landlord shall have drawn down the Letter of Credit and applied all or a
portion thereof in accordance with the terms of this Section 8.01, then Tenant
shall deposit with Landlord, within five (5) business days after notice from
Landlord, an amount of cash sufficient to bring the balance of the cash then
being held by Landlord under this Section 8.01 to the amount of the Security
Deposit. The failure by Tenant to deposit such additional amount within the
foregoing time period shall be deemed a default pursuant to Section 7.01 of
this Lease.

(C)           The
Security Deposit shall be reduced from the amount set forth in Section 1.01(P)
hereof to the Reduction Amount (as defined below) on the first day of the month
following the month in which the first (1st), fifth (5th) and eighth (8th) anniversaries of the Rent Commencement
Date applicable to the Additional Premises shall occur, respectively (each, a “Reduction
Date”) provided and upon the condition that (i) this Lease shall be in full
force and effect and Tenant shall not then be in monetary default hereunder,
(ii) Landlord shall not have delivered more than one written notice of monetary
default hereunder, and (iii) Landlord has not previously drawn on the Security
Deposit by reason of an Event of Default by Tenant. For the purposes hereof,
the “Reduction Amount” for the Security Deposit shall mean (i) $1,991,379 in
respect of the Reduction Date occurring on the first (1st) anniversary of the Rent Commencement
Date applicable to the Additional Premises, (ii) $1,455,239.00 in respect of
the Reduction Date occurring on the fifth (5th) anniversary of the Rent Commencement
Date applicable to the Additional Premises and (iii) $970,156.00 in respect of
the Reduction Date occurring on the eight (8th) anniversary of the Rent Commencement
Date applicable to the Additional Premises. In the event Tenant shall have
deposited with Landlord a Letter of Credit, Landlord shall consent to a
modification of the Letter of Credit to reduce the amount thereof to the
Reduction Amount (the form and substance of such modification to be satisfactory
to Landlord in its reasonable discretion) or shall accept a replacement Letter
of Credit in the reduced amount of the Security Deposit on the applicable
Reduction Date which is in form and substance reasonably satisfactory to
Landlord and which otherwise satisfies the requirements hereof and shall
thereupon return to Tenant the original Letter of Credit then being held by
Landlord.

(D)          In
the event Tenant defaults under the terms of the Existing Lease (or the
sublease with respect to the Additional Premises) prior to the Commencement
Date or if the Existing Lease is terminated by Landlord or Tenant pursuant to
the terms thereof and this Lease is void pursuant to the provisions of Section
1.08(C) hereof, in addition to Tenant’s liability thereunder, Landlord shall be
entitled to draw down the Letter of Credit to recover all costs funded by
Landlord for Landlord’s Contribution, plus any brokerage commissions paid by
Landlord in

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connection with this Lease. Landlord’s right to draw
down the Letter of Credit as aforesaid is a material inducement to Landlord’s
agreement to fund Landlord’s Contribution prior to the Commencement Date of
this Lease.

ARTICLE 9

Miscellaneous Provisions

Section 9.01 Administrative
Service Charges. Tenant acknowledges that any failure by
it to timely pay any of its obligations hereunder will result in and cause
monetary loss to Landlord beyond the amount unpaid by Tenant, the exact amount
of such costs being extremely difficult and impracticable to fix. Such costs
include, without limitation, processing and accounting charges and late charges
that may be imposed on Landlord by the terms of any encumbrance covering the
Premises. Therefore, in addition to any other rights and remedies provided
Landlord, any and all payments, whether for rentals due or other charges,
adjustments or assessments, which remain unpaid for five (5) days after the
respective due date, will be subject to an administrative service charge of ten
percent (10%) of the total overdue amount. The parties agree that this charge
represents a fair and reasonable estimate of the costs Landlord will incur by
reason of such late payment by Tenant. Acceptance of any such administrative
service charge shall not constitute a waiver of Tenant’s default with respect
to the overdue amount, or prevent Landlord from exercising any of the other
rights and remedies available to Landlord.

Section 9.02 Late Charges. In
addition to the administrative service charge described in Section 9.01 and all
other rights and remedies provided Landlord, all amounts payable hereunder
which remain unpaid for five (5) days after their respective due dates shall
bear interest from the date that the same became due and payable to and
including the date of payment, whether or not demand is made therefor, at the
lesser of (i) the rate of eighteen percent (18%) per annum or (ii) the maximum
legal interest rate allowed by the state in which the Building is located.

Section 9.03 Holding Over.

(A)          If
Tenant shall hold-over or remain in possession of the Premises after the
Expiration Date or sooner termination of the Term, then, at Landlord’s option,
Tenant shall be deemed to be occupying the Premises as a month-to-month tenant
only, at a monthly rental equal to the greater of (i) two (2) times the monthly
Base Rent that Landlord is then charging new tenants for space in the Building
or (ii) two (2) times the Base Rent payable hereunder during the last month of
the Term provided that the holdover charges shall be limited to the one and
one-half (11⁄2) times the foregoing
amount during the first 30 days of such holdover period. Tenant shall also pay
all Additional Rent payable under this Lease, prorated for each month during
which Tenant remains in possession. Such month-to-month tenancy may be
terminated by Landlord or Tenant effective as of the last day of any calendar
month by delivery to the other of notice of such termination prior to the first
day of such calendar month.

(B)           If
Tenant shall hold-over or remain in possession of any portion of the Premises
for a period exceeding 60 days after the Expiration Date or sooner termination
of the Term, Tenant shall be subject not only to summary proceeding and all
damages related thereto, but also to any damages arising out of lost
opportunities (and/or new leases) by Landlord to re-let the Premises (or any
part thereof). All damages to Landlord by reason of such holding over by Tenant
may be the subject of a separate action and need not be asserted by Landlord in
any summary proceedings against Tenant. Tenant shall defend, indemnify and hold
Landlord harmless from and against any and all claims, losses and liabilities
for damages resulting from failure to surrender possession upon the Expiration
Date or sooner termination of the Term, including, without limitation, any claims
made by any succeeding tenant, and such obligations shall survive the
expiration or sooner termination of this Lease. Tenant expressly waives, for
itself and for any person claiming through or under Tenant, any rights which
Tenant or such person may have under applicable law (including, without
limitation, any rights that Tenant or any such person may have under the
provisions of Section 2201 of the New York Civil Practice Law and Rules and of
any similar or successor law of like import then in effect) to obtain an
equitable stay in connection with any holdover summary proceedings instituted
by Landlord.

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Section 9.04 Notices.

(A)          Any
and all notices required or which either party herein may desire to give to the
other (each, a “Notice”) shall be made in writing and shall be given by
certified or registered mail, postage prepaid, return receipt requested, or by
a nationally recognized overnight courier, such as Federal Express or Airborne
Express, and shall be deemed to be given on the third (3rd) business day after
the date of posting in a United States Post Office or branch post office or one
day after delivery to the overnight courier, and shall be delivered to Landlord’s
Notice Address or Tenant’s Notice Address, as appropriate. The parties agree
that copies of all Notices to be delivered to Landlord and Tenant hereunder
shall be simultaneously delivered to the specified addresses for copies set
forth in subsection 1.01 (J) and subsection 1.01(R), respectively, if any.
Either party may, by notice as aforesaid actually received, designate a
different address or addresses for communications intended for it. Anything
contained herein to the contrary notwithstanding, any bills or invoices for
Base Rent or Additional Rent or any Landlord’s Operating Statement or Landlord’s
Tax Statement may be given by hand or by mail (which need not be registered or
certified) and, if so given, shall be deemed given on the date of delivery or
refusal, if by hand, or on the third (3rd) business day following the date of
posting, if mailed.

(B)           Notices
given hereunder by any party may be given by counsel for such party. The foregoing
notice provisions shall in no way prohibit notice from being given as provided
in the rules of civil procedure of the state in which the Building is located,
as the same may be amended from time to time and any notice so given shall
constitute notice herein.

Section 9.05 Authority
of Tenant.

(A)          If
Tenant is a corporation, Tenant represents that each individual executing this
Lease on behalf of said corporation represents and warrants that he is duly
authorized to execute and deliver this Lease on behalf of said corporation in
accordance with a duly adopted resolution of the Board of Directors or the
By-Laws of said corporation, and that this Lease is binding upon said
corporation in accordance with its terms.

(B)           If
Tenant is a partnership, joint venture, or other unincorporated association,
Tenant represents that each individual executing this Lease on behalf of said
partnership, joint venture or unincorporated association represents and
warrants that he is duly authorized to execute and deliver this Lease on behalf
of said partnership, joint venture or unincorporated association, and that this
Lease is binding upon said partnership, joint venture or unincorporated
association in accordance with its terms.

Section 9.06 Financial Statements.
Tenant shall, when requested by Landlord from time to time in
connection with a proposed sale or finance or after an Event of Default,
furnish a true and accurate audited statement of its financial condition
prepared in conformity with recognized accounting principles and in a form
reasonably satisfactory to Landlord.

Section 9.07 Authorities for
Action. Landlord may act through its managing agent for
the Building or through any other person who may from time to time be
designated by Landlord in writing. All references in this Lease to the consent
or approval of Landlord shall be deemed to mean the written consent or approval
of Landlord, or its managing agent and no consent or approval shall be
effective for any purpose unless such consent or approval is set forth in a written
instrument executed by Landlord or its managing agent. Tenant shall designate
in writing one or more persons to act on its behalf and may from time to time
change such designation by written notice to Landlord. In the absence of any
such designation, the person or persons executing this Lease on behalf of
Tenant shall be deemed to be authorized to act on behalf of Tenant in any
matter provided for herein.

Section 9.08 Brokerage. Each
party represents and warrants to the other party that it has dealt only with
Broker and/or with Landlord and its direct employees, and no other broker or
agent, in connection with the negotiation or execution of this Lease. Each
party agrees to indemnify and hold the other party harmless from and against
any and all damage, loss, cost or expense including, without limitation, all
attorneys’ fees and disbursements incurred by reason of any claim of or
liability to any other broker or other person for commissions or other
compensation

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or charges by reason of a breach of the foregoing
representation and warranty. The obligations under this Section 9.08 shall
survive the expiration or sooner termination of this Lease.

Section 9.09 Definition of
Landlord. The term “Landlord” as used in this Lease shall
mean only the owner of the Building, or the tenant under a Superior Lease, at
the time in question. In the event of any transfer of title to or lease of the
Building, the transferor shall be entirely freed and relieved of all covenants
and obligations of Landlord hereunder (whether express or implied) without
further agreement between the parties or their successors in interest provided
such transferee assumes the obligations of Landlord in writing or by operation
of law and Tenant shall look solely to the successor in interest of the
transferor as Landlord under this Lease. This Lease shall not be affected by
such transfer or lease, and Tenant agrees to attorn to the transferee or
assignee, such attornment to be effective and self-operative without the
execution of any further instrument by the parties to this Lease.

Section 9.10 Entire Agreement.

(A)          Tenant
acknowledges and agrees that it has not relied upon any statements,
representations, agreements or warranties except those expressed in this Lease,
and that this Lease contains the entire agreement of the parties. No amendment
or modification of this Lease shall be binding or valid unless expressed in
writing and executed and delivered by Landlord and Tenant in the same manner as
the execution of this Lease.

(B)           The
submission of this document for examination and review does not constitute an
option, an offer to lease space, or an agreement to lease space. This document
shall have no binding effect on the parties hereto unless and until executed
and delivered by both Landlord and Tenant and will be effective only upon
Landlord’s execution and delivery of same.

Section 9.11 Force Majeure. Any
obligation of Landlord or Tenant which is delayed or not performed due to Acts
of God, strike, riot, shortages of labor or materials, terrorism, acts of war
(whether declared or undeclared), governmental laws, regulations or
restrictions, governmental action, or lack thereof, or any other causes of any
kind whatsoever which are beyond Landlord’s or Tenant’s reasonable control, as
the case may be, shall not constitute a default hereunder and shall be
performed within a reasonable time after the end of such cause for delay or
nonperformance. The foregoing provisions shall not excuse or delay Tenant’s
obligations for the timely payment of Rent and Additional Rent or any other
monetary obligations of Tenant.

Section 9.12 Severability.
If any term or provision of this Lease or the application thereof to any person
or circumstances shall, to any extent, be illegal, invalid or unenforceable,
the remainder of this Lease, or the application of such term or provision to
persons or circumstances other than those to which it is held invalid or
unenforceable, shall not be affected thereby, and all other terms and
provisions of this Lease shall be valid and enforced to the fullest extent
permitted by law.

Section 9.13 No Setoff. This
Lease shall be construed as though the covenants herein between Landlord and
Tenant are independent, and except as expressly provided herein, Tenant shall
not be entitled to any setoff, offset, abatement or deduction of rent or other
amounts due Landlord hereunder if Landlord fails to perform its obligations
hereunder; provided, however, the foregoing shall in no way impair the right of
Tenant to commence a separate action against Landlord for any violation by
Landlord of the provisions hereof or to which Tenant has not waived any claim
pursuant to the provisions of this Lease so long as notice is first given to
Landlord and any holder of a Mortgage and/or lessor under a Superior Lease and
a reasonable opportunity is granted to Landlord and such holder to correct such
violation. In no event shall Tenant, Landlord or any holder of a Mortgage
and/or lessor under a Superior Lease be responsible for any punitive or
consequential damages.

Section 9.14 Relationship of
Parties. Nothing contained in this Lease shall create any
relationship between the parties hereto other than that of Landlord and Tenant,
and it is acknowledged and agreed that Landlord shall not be deemed to be a
partner of Tenant in the conduct of its business, or a joint venturer or a
member of a joint or common enterprise with Tenant.

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Section 9.15 Name of Building.
Upon notice to Tenant, Landlord shall have the right to designate, or to
change, the name or numbers of the Building
without liability to Tenant.

Section 9.16 Successors
Bound. Except as
otherwise specifically provided herein, the terms, covenants and conditions contained in this Lease shall bind and
inure to the benefit of the respective heirs, successors, executors, administrators and assigns of each of the parties
hereto.

Section 9.17 Interpretation.

(A)                 Whenever
in this Lease any words of obligation or duty are used, such words or
expressions shall have the same force
and effect as though made in the form of a covenant.

(B)                  Words of
any gender used in this Lease shall be deemed to include any other gender, and
words in the singular shall be deemed
to include the plural, when the context requires.

(C)                  All
pronouns and any variances thereof shall be deemed to refer to the neuter,
masculine, feminine, singular or
plural when the context requires.

(D)                 No remedy
or election given pursuant to any provision in this Lease shall be deemed
exclusive unless so indicated, but
each shall, wherever possible, be cumulative with all other remedies at law or
in equity as otherwise specifically
provided herein.

(E)           If and to the extent that, any of the provisions of
any amendment, modification or rider to this Lease conflict or are otherwise
inconsistent with any of the preceding provisions of this Lease, or of the
Rules and Regulations appended to this
Lease, whether or not such inconsistency is expressly noted in such amendment, modification or rider, the provisions of such
amendment, modification or rider shall prevail, or in case of any inconsistency
with the Rules and Regulations, such Rules and Regulations shall be deemed to
be waived with respect to Tenant to
the extent of such inconsistency.

(F)                  The
parties mutually agree that the headings and captions contained in this Lease are
inserted for convenience of reference
only, and are not to be deemed part of or to be used in construing this Lease.

(G)                  This Lease shall be construed in accordance
with the laws of the State of New York. Unless herein waived, Landlord and Tenant acknowledge that all of the applicable
statutes of such state are superimposed on the rights, duties and obligations of Landlord and Tenant hereunder.

(H)          Except as expressly contained herein neither Landlord nor
Landlord’s agent or attorneys have made representations, warranties or promises with respect to the Premises,
the Building or this Lease.

(I)            Landlord and Tenant each acknowledge and warrant that
each has been represented by independent counsel and has executed this Lease after being fully advised by said
counsel as to its effect and significance. This Lease is the result of negotiations between the parties and their
respective attorneys and shall be construed in an even and fair manner,
regardless of the party who drafted this Lease, or any provision thereof.

(J)            In all instances where Tenant is required by the terms
and provisions of this Lease to pay any sum of money or to do any act at a particular indicated time or within an
indicated period, it is understood and agreed that time is of the essence.

Section 9.18 Joint
and Several Obligation.
If this Lease is executed by more than one tenant, Tenant’s obligations hereunder shall be the joint and
several obligations of each tenant executing this Lease.

Section 9.19 Limitation
of Landlord Liability.
In no event shall Landlord be liable to Tenant for any failure of other tenants in the Building to operate their
businesses, or for any loss or damage that may be occasioned by or through
the acts or omissions of other tenants. Notwithstanding anything to the contrary
provided in this Lease,

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neither Landlord, nor any general
or limited partner in or of Landlord, whether direct or indirect, nor any
direct or indirect partners in such partners, nor any disclosed or
undisclosed officers, shareholders, principals, directors, employees, partners, servants or agents of
Landlord, nor any of the foregoing, nor any investment adviser or other holder
of any equity interest in Landlord, their successors, assigns, agents, or any
mortgagee in possession shall have any
personal liability with respect to any provisions of this Lease and, if
Landlord is in breach or default with respect to its obligations or
otherwise, Tenant shall look solely to Landlord’s interest in the Building for
the satisfaction of Tenant’s remedies.

Section 9.20 Short
Form Lease. Tenant
shall not record this Lease or a memorandum hereof without the prior written
consent of Landlord. Upon Landlord’s request, Tenant agrees to execute and
acknowledge a short form lease in recordable form, indicating the names and
addresses of Landlord and Tenant, a description of the Premises, the Term, the Commencement and Expiration Dates, and options
for renewal, if any, but omitting rent and other terms of this Lease.
Further, upon Landlord’s request, Tenant agrees to execute and acknowledge a termination of lease in recordable form to be held
by Landlord until the Expiration Date or sooner termination of the Term.

Section 9.21 Assignment of Rents,
Leases.

(A)          Tenant agrees that
Landlord may assign the rents and its interest in this Lease to the holder of
any Mortgage.

(B)           [Intentionally
Deleted]

Section 9.22 Rules
and Regulations.

(A)          The rules and
regulations set forth in Exhibit E annexed
hereto (the “Rules and Regulations”) have been adopted by Landlord for
the safety and convenience of all tenants and other persons in the Building.
Tenant shall at all times comply with, and
shall cause its employees, agents, contractors, licensees and invitees to
comply with, the Rules and Regulations from time to time in effect.
Landlord may, from time to time, amend, delete or add to the Rules and Regulations, provided that any such
modification:

(1)           shall not be inconsistent with any other provision
of this Lease;

(2)                   shall be reasonable and have general application
to all tenants in the Building; and

(3)           shall
be effective only upon delivery of a copy thereof to Tenant at the Premises or
posting same in a conspicuous place within
the Building.

(B)                  Landlord
shall use reasonable efforts to secure compliance by all tenants and other persons
with the Rules and Regulations from time to time in effect, but shall
not be liable to Tenant for failure of any person to comply with such Rules and Regulations. Any failure by
Landlord to enforce any of the Rules and Regulations will not constitute a waiver of same with respect to
Tenant provided that Landlord shall not promulgate or enforce the Rules and Regulations against Tenant in a
discriminatory manner.  Landlord reserves
the right, in its sole discretion, to
waive, either temporarily or permanently, application of any of the Rules and
Regulations to any particular tenant
in the Building. In case Tenant disputes the reasonableness of any additional
Rule or Regulation hereafter made or adopted by Landlord or Landlord’s agents,
the parties hereto agree to submit the question of the reasonableness of such Rule or Regulation for
decision to the Chairman of the Board of Directors of the Management
Division of The Real Estate Board of New York, Inc., or to such impartial
person or persons as he may designate, whose
determination shall be final and conclusive upon the parties hereto. The right
to dispute the reasonableness of any additional Rule or Regulation upon
Tenant’s part shall be deemed waived unless the same shall be asserted by
delivery of a notice in writing upon Landlord within ten (10) days after
receipt by Tenant of written notice of the
adoption of any such additional Rule or Regulation.

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Section 9.23 Estoppel
Certificate. At any
time and from time to time upon written request by Landlord, Tenant hereby agrees to deliver within fifteen (15) days
after request, a certificate to Landlord or to any present or proposed (a) mortgagee, (b) lessor under a
Superior Lease, or (c) purchaser designated by Landlord, in the form supplied,
certifying: (1) that Tenant has accepted the Premises (or, if Tenant has not
done so, that Tenant has not accepted the Premises, and specifying the
reasons therefor); (2) that this Lease is in full force and effect and has not
been modified (or if modified, setting forth all modifications), or, if this
Lease is not in full force and effect, the
certificate shall so specify the reasons therefor; (3) the Commencement Date,
the Expiration Date and the terms of
any extension options of Tenant; (4) the date to which the Base Rent and
Additional Rent have been paid under
this Lease and the amount thereof then payable; (5) the amount of the Security
Deposit and prepaid rent, if any, being held by Landlord; (6) whether
there are then any existing defaults by Landlord in the performance of its
obligations under this Lease, and, if there are any such defaults, specifying
the nature and extent thereof; (7) that no
notice has been received by Tenant of any default under this Lease which has
not been cured, except as to
defaults specified in the certificate; (8) the capacity of the person executing
such certificate, and that such person is duly authorized to execute the
same on behalf of Tenant; and (9) any other information reasonably requested by
Landlord or its present or proposed purchaser, the holder of any Mortgage, or
lessor under a Superior Lease. Landlord
agrees to provide an estoppel certificate if requested by the purchaser or
acquiring entity of Tenant in
connection with a corporate merger or consolidation transaction.

Section 9.24 Obstruction
of Light or View. If
at any time any windows of the Premises are temporarily closed, darkened or bricked-up for any reason whatsoever
including, but not limited to, Landlord’s own acts, or any of such
windows are permanently closed, darkened or bricked-up if required by law or
related to any construction upon property
adjacent to the Property by Landlord or others, Landlord shall not be liable
for any damage Tenant may sustain thereby and Tenant shall not be entitled to
any compensation therefor nor abatement of Base Rent or Additional Rent nor
shall the same release Tenant from its obligations hereunder nor constitute an
eviction.

Section 9.25 Attorneys’ Fees. In
the event of any action or proceeding brought by either party against the other
party under this Lease, the prevailing party
shall be entitled to recover court costs and the fees and disbursements of its attorneys in such action or proceeding
(whether at the administrative, trial or appellate levels) in such amount as the court or administrative body may
judge reasonable. Landlord shall also be entitled to recover attorneys’ fees and disbursements incurred in
connection with a Tenant default hereunder which does not result in the
commencement of any action or proceeding.

Section 9.26 Landlord’s
Failure to Consent. If
Tenant shall request Landlord’s consent hereunder and Landlord shall fail or refuse to give such
consent, Tenant shall not be entitled to any damages for the withholding of its consent, it being intended that Tenant’s
sole remedy shall be an action for specific performance or injunction
and that such remedy shall be available only in those cases where Landlord has
expressly agreed in writing not to
unreasonably withhold its consent or where, as a matter of law, Landlord may
not unreasonably withhold its consent.

Section 9.27 No
Waiver.

(A)          The failure of either party to exercise its rights in
connection with this Lease or any breach or violation of any term, covenant or condition herein contained
shall not be deemed to be a waiver of such term, covenant or condition or any
subsequent breach of the same or any other term, covenant or condition herein
contained. The subsequent acceptance
of Base Rent and Additional Rent hereunder by Landlord shall not be deemed to
be a waiver of any preceding breach by Tenant of any term, covenant or
condition of this Lease other than the failure of Tenant to pay the particular
amount of Base Rent or Additional Rent so accepted, regardless of Landlord’s
knowledge of such preceding breach at the time of acceptance of such monies. No
payment by Tenant or receipt by Landlord of
a lesser amount than the monthly Base Rent herein stipulated shall be deemed to
be other than on account of the
earliest stipulated Base Rent, or as Landlord may elect to apply same, nor
shall any endorsement or statement on
any check or any letter accompanying any check or payment as Base Rent be
deemed an accord and satisfaction, and Landlord may accept such check or
payment without prejudice to Landlord’s right to recover the balance of such
Rent or pursue any other remedy in this Lease provided.

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(B)           If there be any agreement between Landlord and
Tenant providing for the cancellation of this Lease upon certain provisions or contingencies and/or an
agreement for the renewal hereof at the expiration of the Term, the right to such renewal or the execution of a renewal
agreement between Landlord and Tenant prior to the expiration of the Term shall not be considered an
extension thereof or a vested right in Tenant to such further term, so
as to prevent Landlord from canceling this Lease and any such extension thereof
during the remainder of the original Term;
such privilege, if and when so exercised by Landlord, shall cancel and
terminate this Lease and any such renewal or extension previously
entered into between Landlord and Tenant or the right of Tenant to any such renewal or extension; any right herein
contained on the part of Landlord to cancel this Lease shall continue during any extension or renewal hereof; any
option on the part of Tenant herein contained for an extension or renewal hereof shall not be deemed to give Tenant
any option for a further extension beyond the first renewal or extended term.

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

Section 9.28 Vault
Space. Notwithstanding
anything contained in this Lease or indicated on any sketch, blueprint
or plan, any vaults, vault space or other space outside the boundaries of the
Property, are not included in the Premises.
Landlord makes no representation as to the location of the boundaries of the
Property. All vaults and vault space
and all other space outside the boundaries of the Property which Tenant may be
permitted to use or occupy is to be used or occupied under a revocable license,
and if any such license shall be revoked, or if the amount of such space shall be diminished or
required by any Federal, State or Municipal authority or by any public utility company, such revocation,
diminution or requisition shall not constitute an actual or constructive
eviction, in whole or in part, or entitle Tenant to any abatement or diminution
of rent, or relieve Tenant from any of its obligations under this Lease,
or impose any liability upon Landlord. Any fee, tax or charge imposed by any
governmental authority for any such vaults, vault space or other space shall be
paid by Tenant.

Section 9.29 Adjacent
Excavation; Shoring.
If an excavation shall be made upon land adjacent to the Office Building,
or shall be authorized to be made, Tenant shall afford to the person causing or
authorized to cause such excavation,
license to enter upon the Premises for the purpose of doing such work as said
person shall deem necessary to preserve the exterior surface of the Office
Building from injury or damage and to support the same by proper
foundations without any claim for damages or indemnity against Landlord, or
diminution or abatement of Base Rent or Additional Rent.

Section 9.30 Directory
Listings. Landlord agrees to provide Tenant, at
Landlord’s sole cost and expense, with listings of Tenant’s name and personnel
and approved subtenants and occupants on the directory in the lobby of the
Building. Upon written request by Tenant, Landlord agrees to provide Tenant
with additional listings on such directory,
at Tenant’s sole cost and expense, provided that, unless there is a
computerized directory, Tenant shall be limited to the number of listings
determined by multiplying Tenant’s Proportionate Share by the total number of
spaces available for listings on such directory. Computerized listings, if any,
shall be unlimited, and shall be made available to Tenant and Tenant’s
approved subtenants, occupants as well as personnel designated by Tenant.

Section 9.31 Government
Rent Restrictions. If the amount of the Base Rent and
Additional Rent exceeds the amount
allowed by the terms of any valid government restriction which limits the
amount of rent or other charges that a commercial lessor may charge or
collect, the amount of Base Rent and Additional Rent payable under this Lease
shall be reduced to the maximum permitted by such governmental restriction for
the period of time during which such
restriction remains in effect. All increases in Base Rent and Additional Rent
provided for in this

 52
 

 

Lease shall, however, to the extent permitted by
applicable law, be calculated upon the amount of the Base Rent and Additional
Rent that would have been payable in the absence of the government restriction,
and, effective as of the expiration of the
government restriction, the Base Rent and Additional Rent payable hereunder
shall be increased to the amount
that would have been payable had the government restriction never been in
effect. To the fullest extent
permitted by applicable law, on the first due date for an installment of Base
Rent following the expiration of the
government restriction, Tenant shall pay Landlord an amount equal to the
difference between the amount of Base Rent and Additional Rent that
Tenant would have paid if the government restriction had not been in force and
the amount of Base Rent and Additional Rent actually paid by Tenant during the
period in which the government restriction
remained in effect.

Section 9.32 Relocation. [Intentionally
Deleted]

Section 9.33 Zoning; Development Rights. Tenant
hereby irrevocably waives any and all rights it may have in connection with any
zoning lot merger or transfer of development rights with respect to the
Building, including, without
limitation, any rights it may have to be a party to, to contest, or to execute,
any Declaration of Restrictions (as
such term is defined in Section 12-10 of the Zoning Resolution of The City of
New York effective December 15, 1961, as amended) with respect to the
Building, which would cause the Premises to be merged with or unmerged from any other zoning lot pursuant to
such Zoning Resolution or to any document of a similar nature and
purpose, and Tenant agrees that this Lease shall be subject and subordinate to
any Declaration of Restrictions or any other documents of similar nature and
purpose now or hereafter affecting the Building. In confirmation of such subordination and waiver, Tenant shall
execute and deliver promptly any certificate or instrument that Landlord may reasonably request.

Section 9.34 JURY
TRIAL AND COUNTERCLAIM WAIVER. LANDLORD AND TENANT
HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER OR THEIR SUCCESSORS IN
RESPECT OF ANY MATTER ARISING OUT OF
OR IN CONNECTION WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT’S USE OR OCCUPANCY OF
THE PREMISES, AND/OR ANY CLAIM FOR INJURY OR DAMAGE, OR ANY EMERGENCY OR
STATUTORY REMEDY. IN THE EVENT
LANDLORD COMMENCES ANY SUMMARY PROCEEDINGS OR ACTION FOR NON-PAYMENT OF BASE
RENT OR ADDITIONAL RENT, TENANT SHALL NOT INTERPOSE ANY COUNTERCLAIM OF ANY NATURE OR DESCRIPTION (UNLESS
SUCH COUNTERCLAIM SHALL BE MANDATORY)
IN ANY SUCH PROCEEDING OR ACTION BUT SHALL BE RELEGATED TO AN INDEPENDENT ACTION AT LAW.

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

LANDLORD:

	
  140 BW LLC

  
	
   

  
	
  By:

  	
    /s/ Michael Montebaur

  	
   

  	
  By:

  	
    /s/ Rolf Zarnekous

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
    Michael Montebaur

  	
   

  	
  Name:

  	
    Rolf Zarnekous

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
    Director

  	
   

  	
  Title:

  	
    Director

  	
   

  
												

 

 53
 

 

TENANT:

	
  ACA FINANCIAL GUARANTY CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
    /s/ Edward U. Gilpin

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
    Edward U. Gilpin

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
  EVP/CFO

  	
   

  
	
   

  	
   

  	
   

  
	
  Federal Tax I.D. Number or

  	
   

  
	
  Social Security Number:

  	
   

  
	
  52-1474358

  	
   

  	
   

  
					

 

 54

 

Exhibit A-1

FLOOR PLAN OF

EXISTING PREMISES

 

EXHIBIT A-1

EXISTING PREMISES (47TH FLOOR)

[GRAPHIC]

 1
 

 

EXHIBIT A-1

EXISTING PREMISES (48TH FLOOR)

[GRAPHIC]

 2

 

Exhibit A-2

FLOOR PLAN OF

ADDITIONAL PREMISES

 

EXHIBIT A-2

ADDITIONAL PREMISES (48TH FLOOR)

[GRAPHIC]

 

Exhibit B 

[Intentionally Deleted]

 

Exhibit C

FORM OF LETTER OF CREDIT

[BANK LETTERHEAD]

[Insert Name and

Address of Landlord]

Re:      Irrevocable
Clean Letter of Credit

By order of our client,
ACA FINANCIAL GUARANTY CORPORATION, we hereby open our clean irrevocable Letter
of Credit No.                       
in your favor for an amount not to exceed in the aggregate
$                       
effective immediately.

Funds under this credit
are available to you against your sight draft on us mentioning thereon our
Credit No.                         .

This Letter of Credit
shall expire twelve (12) months from the date hereof; provided, however, that
it is a condition of this Letter of Credit that it shall be deemed
automatically extended, from time to time, without amendment, for one year from
the expiry date hereof and from each and every future expiry date, unless at
least thirty (30) days prior to any expiry date we shall notify you by
registered mail that we elect not to consider this Letter of Credit renewed for
any such additional period. In no event, however, shall this Letter of Credit
be extended beyond [insert date which is not
less than sixty (60) days beyond the final expiration date of the Lease].

This Letter of Credit is
transferable and assignable in its entirety or in one or more portions to any
transferee or transferees who shall be identified in your written transfer
request. Upon presentation of your written transfer request and this Letter of
Credit, we shall forthwith issue our Irrevocable Letter of Credit to the
designated transferee or transferees for the unused portion hereof. Each Letter
of Credit issued upon such transfer and assignment may be successively
transferred and assigned in the same manner.

We hereby agree with you
that all drafts drawn with the terms of this Letter of Credit will be duly
honored upon presentment and delivery to our office at                        
on or prior to the expiry date, or as the same may from time to time be
extended.

Except as otherwise
specified herein, this Letter of Credit is subject to the Uniform Customs and
Practice for Documentary Credits (1993 Revision), International Chamber of
Commerce Publication No. 500.

	
  

  	
   

  	
  Very truly yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [Name of Bank]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  

op

 

Exhibit D

[Intentionally
Deleted]

 1

 

Exhibit E

RULES AND REGULATIONS

I.                                         The
rights of each tenant in the Building to the entrances, corridors and elevators
of the Building are limited to ingress to and egress from such tenant’s
premises and no tenant shall use, or permit the use of the entrances,
corridors, or elevators for any other purpose. No tenant shall invite to its
premises, or permit the visit of persons in such numbers or under such
conditions as to interfere with the use and enjoyment of any of the plazas,
entrances, corridors, elevators and other facilities of the Building by other
tenants. No tenant shall encumber or obstruct, or permit the encumbrances or
obstruction of any of the sidewalks, plazas, entrances, corridors, elevators,
fire exits or stairways of the Building. Landlord reserves the right to control
and operate the public portions of the Building, the public facilities, as well
as facilities furnished for the common use of the tenants, in such manner as
Landlord deems best for the benefit of the tenants generally. The premises
shall not be used for lodging or sleeping or for any immoral or illegal
purposes.

II.                                  Landlord may refuse admission to the Building outside of
ordinary business hours to any person not known to the watchman, if any, in
charge or not having a pass issued by the Landlord or not properly identified,
and may require all persons admitted to or leaving the Building outside of
ordinary business hours to register. Tenant’s employees, agent and visitors
shall be permitted to enter and leave the Building whenever appropriate
arrangements have been previously made between Landlord and the tenant with
respect thereto. Each tenant shall be responsible for all persons for whom it
requests such permission and shall be liable to Landlord for all acts of such
persons. Any person whose presence in the Building at any time shall, in the
judgment of Landlord, be prejudicial to the safety, character, reputation or
interests of the Building or its tenants may be denied access to the Building
or may be ejected therefrom. In case of invasion, riot, public excitement or
other commotion Landlord may prevent all access to the Building during the
continuance of the same, by closing the doors or otherwise, for the safety of
the tenants and protection of property in the Building. Landlord may require
any person leaving the Building with any package or other object to exhibit a
pass from the tenant from whose premises the package or object is being
removed, but the establishment and enforcement of such requirement shall not
impose any responsibility on Landlord for the protection of any tenant against
the removal of property from the premises of tenant. Landlord shall, in no way,
be liable to any tenant for damages or loss arising from the admission,
exclusion or ejection of any person to or from a tenant’s premises or the
Building under the provisions of this rule.

III.                              No awnings, air-conditioning units, fans or other projections
shall be attached to or project through the outside walls or windows of the
Building. No curtains, blinds, shades or screens, other than those which
conform to Building standards as established by Landlord from time to time,
shall be attached to or hung in, or used in connection with, any window or door
of the Premises, without the prior written consent of Landlord. Such awnings,
projections, curtains, blinds, shades, screens or other fixtures must be of a
quality, type, design and color, and attached in the manner approved by
Landlord.

IV.                              No sign, advertisement, notice or other lettering shall be
exhibited, inscribed, painted or affixed by Tenant on any part of the outside
of the Premises or Building or on the inside of the Premises if the same can be
seen from the outside of the Premises without the prior written consent of
Landlord except that the name of Tenant may appear on the entrance door of the
Premises, subject to Landlord’s reasonable approval of the size, style, color
and manner in which such name is displayed. In the event of the violation of
the foregoing by Tenant, if Tenant has refused to remove same after reasonable
notice from Landlord, Landlord may remove same without any liability, and may
charge the expense incurred by such removal to Tenant.

 1
 

 

V.                              All
electrical fixtures hung in offices or spaces along the perimeter of any tenant’s
Premises must be fluorescent, of a quality, type, design and bulb color
approved by Landlord unless the prior consent of Landlord has been obtained for
other lamping.

VI.                                 No
tenant shall obtain or accept for use in its premises towels, barbering, boot
blacking, floor polishing, lighting maintenance, cleaning or other similar
services from any persons not authorized by Landlord in writing to furnish such
services. Such services shall be furnished only at such hours, in such places
within the tenant’s premises and under such regulation as may be fixed by
Landlord.

VII.                             No
showcases or other articles shall be put in front of or affixed to any part of
the exterior of the Building, nor placed in the halls, corridors or vestibules,
nor shall any article obstruct any air-conditioning supply or exhaust without
the prior written consent of Landlord.

VIII.                         The water
and wash closets and other plumbing fixtures shall not be used for any purposes
other than those for which they were constructed, and no sweepings, rubbish,
rags, acids or other substances shall be deposited therein. All damages
resulting from any misuse of such fixtures shall be borne by Tenant.

IX.                                Tenant
shall not mark, paint, drill into, or in any way deface any part of the
Premises or the Building. No boring, cutting or stringing of wires shall be
permitted, except with the prior written consent of Landlord, which consent
shall not be unreasonably withheld or delayed, and as Landlord may direct.
Tenant shall not lay floor tile, or other similar floor covering, so that the
same shall come in direct contact with the floor of the Premises, and, if such
floor covering is desired to be used, an interlining of builder’s deadening
felt shall be first affixed to the floor, by a paste or other material, soluble
in water, the use of cement or other similar adhesive material being expressly
prohibited.

X.                                    There
shall not be used in any space, nor in public halls of the Building, either by
any tenant or by jobbers, or others in the delivery or receipt of merchandise,
any hand trucks, except those equipped with rubber tires and side guards. Hand
trucks shall not be permitted in the passenger elevators of the building at any
times.

XI.                                All
entrance doors in each tenant’s premises shall be left locked when the tenant’s
premises are not in use. Entrance doors shall not be left open at any time. All
windows in each tenant’s premises shall be kept closed at all times and all
blinds therein above the ground floor shall be lowered when and as reasonably
required because of the position of the sun, during the operation of the
Building air-conditioning system to cool or ventilate the tenant’s premises.

XII.                          No noise,
including but not limited to the playing of any musical instruments, radio or
television, which, in the judgment of Landlord, might disturb other tenants in
the Building, shall be made or permitted by any tenant. Tenant, its servants,
employees, agents, visitors or licensees shall not at any time bring or keep
upon its premises any explosive fluid, chemical or substance, nor any inflammable
or combustible object or materials.

XIII.                        All
damages resulting from any misuse of the plumbing fixtures shall be borne by
the tenant who, or whose servants, employees, agent, visitors or licensees,
shall have caused the same.

XIV.                        Except in
those areas designated by Tenant as “security areas,” additional locks or bolts
of any kind which shall not be operable by the Grand Master Key for the
building shall not be placed upon any of the doors or windows by any tenant,
nor shall any changes be made in the locks or

 2
 

 

the mechanism thereof which shall make such locks
inoperable by said Grand Master Key. Each tenant shall, upon the termination of
its tenancy, turn over to Landlord all keys of stores, offices and toilet
rooms, either furnished to, or otherwise procured by, such Tenant and in the
event of the loss of any keys furnished by the Landlord, such tenant shall pay
to Landlord the reasonable cost thereof. No additional locks or bolts of any
kind shall be placed upon any of the doors or windows in any tenant’s premises
and no lock on any door therein shall be changed or altered in any respect.
Duplicate keys for a tenant’s premises and toilet rooms shall be procured only
from Landlord, which may make a reasonable charge therefore. Upon the termination
of a tenant’s lease, all keys of the tenant’s premises and toilet rooms shall
be delivered to Landlord.

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

XVI.                        No tenant
shall install or permit to be installed any vending machines without Landlord’s
approval. No animals or birds, bicycles, mopeds or vehicles of any kind shall
be kept in or about the Building or permitted therein.

XVII.                    No furniture,
office equipment, packages or merchandise will be received in the Building or
carried up or down in the elevator, except between such hours as shall be
designated by Landlord. Landlord shall prescribe the charge for freight
elevator use and the method and manner in which any merchandise, heavy
furniture, equipment or safes shall be brought in or taken out the Building,
and also the hours at which such moving shall be done. No furniture, office
equipment, merchandise, large packages or parcels shall be moved or transported
in the passenger elevators at any time.

XVIII.                The sashes, sash
doors, skylights, exterior windows and doors that reflect or admit light and
air into any premises or the halls, passageways or other public places in the
Building, shall not be covered or obstructed by any tenant, nor shall any
articles be placed on the windowsills. Canvassing, soliciting and peddling in
the Building is prohibited and each tenant shall cooperate to prevent same.

XIX.                       No tenant
shall do any cooking, conduct any restaurant, luncheonette or cafeteria for the
sale or service of food or beverages to its employees or to others, except as
expressly approved in writing by Landlord in the Lease or as otherwise approved
in writing by Landlord. In addition, no tenant shall cause or permit any odors
of cooking or other processes or any unusual or objectionable odors to emanate
from the premises. The foregoing shall not preclude tenant from having food or
beverages delivered to the premises, provided that no cooking or food
preparations shall be carried out at the premises.

XX.                           Unless
Landlord shall furnish electrical energy hereunder as a service included in the
rent, Tenant shall, at Tenant’s expense, provide artificial light and
electrical energy for the employees of Landlord and/or Landlord’s contractors
while doing janitor services or other cleaning in the premises and while making
repairs in the Premises.

XXIII.               Landlord reserves the
right to rescind, alter or waive any rule or regulation at any time prescribed
for the building when, in its judgment, it deems it necessary or desirable for
the reputation, safety, care of appearance of the building, or the preservation
of good order therein, or the operation or maintenance of the building or the
equipment thereof, or the comfort of tenants or others in the building. No
rescission, alteration or waiver of any rule or regulation in favor of one
tenant shall operate as a rescission, alteration or waiver in favor of any
other tenant.

 3

 

Exhibit F

REQUIREMENTS
FOR

“CERTIFICATES OF FINAL APPROVAL”

1.                          All
required Building Department Forms must be properly filled out and completed by
the approved architect/engineer of record or Building Department expediter, as
required.

2.                          All
forms are to be submitted to Landlord for Landlord’s review and signature prior
to submission of final plans and forms to the New York City Building
Department, as required.

3.                          All
pertinent forms and filed plans are to be stamped and sealed by a licensed
architect and/or professional engineer, as required. All controlled inspections
are to be performed by the architect/engineer of record unless approved
otherwise by the Landlord.

4.                          A copy
of all approved forms, permits and approved NYC Building Department plans
(stamped and signed by the New York City Building Department) are to be
submitted to the building office prior to start of work.

5.                          Copies
of all completed inspection reports and NYC Building Department sign-offs are
to be submitted to the building office immediately following completion of
construction, as required.

6.                          All
claims, violations or discrepancies with improperly filed plans, applications,
or improperly completed work shall become the sole responsibility of the
applicant to resolve, as required.

7.                          All
changes to previously approved plans and applications must be filed under an
amended application, as required. Landlord reserves the right to withhold
approvals to proceed with changes until associated plans are properly filed
with the New York City Building Department, as required.

8.                          The
architect/engineer of record accepts full responsibility for any and all
discrepancies or violations which arise out of non-compliance with all local
laws and building codes having jurisdiction over the work.

9.                          The Landlord
reserves the right to reject any and all work requests and new work
applications that are not properly filed or accompanied by approved plans and
building permits.

10.                    All ACP’s and
asbestos inspections must be conducted by a licensed and fully qualified
asbestos inspection agency approved by Landlord.

 1
 

 

Checklist of “Certificates of Final Approval” required
to be furnished by Tenant pursuant to Article 2 (Alterations) of Lease.

These forms must be furnished by the Architect/ Engineer
of record or Building Department
expediter (filing agency) and approved by Landlord prior to submitting all
plans and forms to the New York City Building Department for final approval.

	
  

  	
   

  	
  Form

  	
   

  	
  Description

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o
  *

  	
   

  	
  PW-1

  	
   

  	
  Building Notice Application (Plan work approval application)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o
  *

  	
   

  	
  PW-1B

  	
   

  	
  Plumbing/Mechanical Equipment Application and
  Inspection Report

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o
  *

  	
   

  	
  PW-1

  	
   

  	
  Statement Form B

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o
  *

  	
   

  	
  TR-1

  	
   

  	
  Amendment Controlled Inspection Report

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  PW-2

  	
   

  	
  Building Permit Form (All Disciplines)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  B Form 708

  	
   

  	
  Building Permit “Card”

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o
  *

  	
   

  	
  TR-1

  	
   

  	
  Certification of Completed Inspection and Certified Completion Letter by Architect/Engineer of record
  or Building Department expediter

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  PW-3

  	
   

  	
  Cost Affidavit Form

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  PW-4

  	
   

  	
  Equipment Use Application Form

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o
  *

  	
   

  	
  PW-6

  	
   

  	
  Revised Certificate of Occupancy for change in use
  (if applicable)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  o

  	
   

  	
  Form ACP-7 

  or

  	
   

  	
  New York City Department of Environmental Protection Asbestos 

  
	
   

  	
   

  	
  Form ACP-5

  	
   

  	
  Inspection Report as prepared by a licensed and
  approved asbestos inspection agency

  
	
   

  	
   

  	
   

  	
   

  	
  Building Department Equipment Use Permits for all
  new HVAC equipment installed under this
  application

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Revised Certificate of Occupancy for change in use
  (if applicable)

  

 

*                            These items must be perforated (with the
date and New York City Building Department Stamp) to signify New York
City Building Department Approval. All forms must bear proper approvals and
sign-offs prior to authorization given by Landlord to proceed with the work.

 2

 

Exhibit G

TENANT
ALTERATION WORK AND NEW CONSTRUCTION 

CONDITIONS AND REQUIREMENTS

1.              No Alterations are
permitted to commence until original Certificates of Insurance required
from Tenant’s general contractor (the “General
Contractor”) and all subcontractors complying with the attached requirements
are on file with the Building office.

2.              All New York City Building Department applications
with assigned BN# and permits must be on file with the Building office prior to starting work. A copy of
the building permit must also be posted
on the job site by the General Contractor. The General Contractor shall make
all arrangements with Landlord’s
expediter for final inspections and sign-offs prior to substantial completion.

3.              The General Contractor shall comply with all
Federal, State and local laws, building codes, OSHA requirements, and all laws having jurisdiction over the performance
and handling of the Alterations.

4.              The existing “Class E” fire alarm system
(including all wiring and controls), if any, must be maintained at all times. Any additions or
alterations to the existing system shall be coordinated with the Building
office as required. All final tie-in work is to be performed by Landlord’s fire
alarm vendor and coordinated by the
General Contractor. All costs for the tie-ins are reimbursable to Landlord by Tenant.

5.              All wood used,
whether temporary or not, such as blocking, form work, doors, frames, etc.
shall be fire rated in accordance with the
New York City Building and Fire Code requirements governing this work.

6.              Building standby
personnel (i.e. Building
operating engineer and/or elevator operator), required for all construction will be at Landlord’s discretion. Freight elevators
used for overtime deliveries must be
scheduled in writing with Landlord at least 24 hours in advance, as required.
All costs associated are reimbursable
to Landlord by Tenant.

7.              The General Contractor shall comply with the Rules
and Regulations of the Building elevators and the manner of handling materials, equipment and debris to avoid
conflict and interference with Building operations. All bulk deliveries or
removals will be made prior to 8:00 a.m. and after 6:00 p.m. or on weekends, as required.

8.              All construction personnel must use the freight
elevator at all times. Any and all tradesman found riding the passenger elevators without prior
approval from Landlord will be escorted out of the Building and not be allowed re-entry without
written approval from the Building office.

9.              During the performance of Alterations, Tenant’s
construction supervisor or job superintendent must be present on the job site at all times.

10.            During the performance of Alterations, all
demolition work shall be performed after 6:00 p.m. during the week or on weekends. This would include
carting or rubbish removal as well as performing
any operations that would disturb other Building tenants or other occupants
(drilling, chopping, grinding, recircuiting, etc.).

 1
 

 

11.            No conduits or cutouts
are permitted to be installed in the floor slab without prior written approval from Landlord. Landlord reserves the
right to restrict locations of such items to areas that will not interfere with the Building’s
framing system or components. No conduits or cutouts are permitted outside of Tenant’s Premises.

12.            Plumbing connections to Building supply, waste
and vent lines are to be performed after normal working hours, and coordinated with the Building manager, and are to
include the following minimum
requirements:

A.        Separate
shutoff valves for all new hot and/or cold water supply lines (including associated access doors).

B.        Patch and
repair of existing construction on floor below, immediately following completion of plumbing work (to be performed
after normal working hours, as required).

13.            The General Contractor must coordinate all work
to occur in public spaces, core areas and other tenant occupied spaces with Landlord, and perform all such work after
normal working hours (to include
associated patch and repair work). The General Contractor shall provide all
required protection of existing
finishes within the affected area(s).

14.            The General Contractor must perform all floor
coring, drilling or trenching after normal business hours, and obtain Landlord’s
permission and approval of same prior to performing such work.

15.            Convector mounted outlets and associated conduits,
wiring, boxes, etc., shall be located and installed in areas where they
will not hinder the operation or maintenance of existing fan coil units or prevent removal or replacement of access
panels or removable covers.

16.            The General Contractor shall be responsible for
all final tests, inspections and approvals associated with all modifications, deletions or additions to Building
Class “E” systems and equipment.

17.            Recircuiting of existing power/lighting panels and
circuits affecting Building and/or tenant operations are to be performed after normal business hours and
coordinated with the Building office
in advance, as required.

18.            All burning and welding to be performed in
occupied or finished areas shall be performed after normal business hours and
coordinated with the Building office in advance, as required. Proper ventilation of the work area will be required in
order to perform this work.

19.            The General Contractor
shall provide Landlord and the Building office with all approved submittal and
closeout documents as well as all required final inspections and Building Department sign-offs just prior to or immediately
following completion of construction.

20.            Any and all Alterations to the Building sprinkler
system (including draining of system) are to be performed after normal business hours and coordinated with the Building
office, as required. All costs
associated with the shut down, drain and refill of the sprinkler system are
reimbursable to Landlord.

21.            The General Contractor shall be responsible for
any and all daily cleanup required to keep the job site clean throughout
the entire course of the Alterations. No debris shall be allowed to accumulate in any public spaces.

 2
 

 

22.       All walls,
floors and doors in public areas, which are subject to construction traffic,
shall be protected to the satisfaction of the Building Manager. Shoe wiping
mats shall be installed at all openings between public and construction areas.
The General Contractor shall be responsible for proper protection of all
existing finishes and construction for Alterations to be performed in common
Building areas. All diffusers, return grilles, and perimeter induction units
will be sealed before construction and demolition is started. All Alterations
to be performed in occupied areas outside of the Premises shall be performed
after normal business hours and coordinated with the Building office, as
required.

23.       The General
Contractor shall perform any and all hoisting associated with the Alterations
after normal business hours. The General Contractor will obtain all required
permits and insurance to perform work of this nature. The General Contractor
shall specify hoisting methods and provide all required permits and insurance
to Landlord and the Building office prior to commencement of Alterations.

24.       Union labor
shall be used by all contractors and subcontractors performing any and all
Alterations within the Building. All contractors and subcontractors shall
perform all work in a professional manner, and shall work in close harmony with
one another as well as with the Building management and maintenance personnel.
If, in Landlord’s judgment, interference with the close harmony occurs, Tenant
will cause such labor to be removed from the building.

25.       The General
Contractor shall forward complete copies of all approved contractor submittal,
and Building and Fire Department sign-offs and Statement of Responsibility
forms, to the Building office immediately following completion of construction.

26.       Two (2)
complete sets of “as built” Final Plans and an additional set in an acceptable
electronic format must be delivered to Landlord upon final completion of the
Alterations.

 3
 

 

INSURANCE REQUIREMENTS

LIABILITY LIMITATIONS

No contractors shall be permitted access to the Building until Landlord
is in receipt of certificates of insurance evidencing the following insurance,
which certificates contain provisions that obligate the insurer to notify
Landlord, ten (10) days in advance, in the event of cancellation, non-renewal
or material change of the coverage:

A.       Comprehensive
or Commercial General Liability Insurance written on an occurrence basis, to
afford protection of $5,000,000 combined single limit per location for personal
injury, bodily injury and/or death and Broad Form property damage arising out
of any one occurrence; and which insurance shall include coverage for
premises-operations (including explosion, collapse and underground coverage),
elevators, products, contractual liability, owner’s and contractor’s protective
liability, and completed operations liability.

B.        Comprehensive
Auto Liability Insurance covering the use of all owned, non-owned and hired
vehicles providing bodily injury and property damage coverage, all on a per
occurrence basis, at a combined single limit of $1,000,000.

C.        Worker’s
Compensation Insurance providing statutory benefits for contractor’s employees
and Employer’s Liability Coverage in an amount not less than
$100,000/$500,000/$100,000.

D.       Property
coverage damage to or loss of use of contractor’s equipment.

CERTIFICATE HOLDER

140 BW LLC

140 Broadway, 21st

New York, New York 10005

ADDITIONAL INSUREDS

Hines Interests Limited Partnership

Deutsche Immobilien Fonds AG (DIFA)

In addition to listing each of the Additional Insured parties, as noted
above, the Certificate of Insurance, general liability form, shall state that “The
General Aggregate limit applies separately to each project.”

The name and address of the Additional Insureds shall appear on the
Certificate of Insurance. The insurance agent’s address and telephone number is
also required.

 4

 

Exhibit H

APPROVED CONTRACTORS AND
SUB-CONTRACTORS

 1

 

140
Broadway - Vendor List

Architects

	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Dolores John Architect, PC 

  Architects 

  Ms. Dolores John 

  908-459-5820

  	
   

  	
  Address: 

  

  

  Fax

  	
   

  	
  185 State Park Road 

  Blairstown, NJ

  

  908-459-9207

  	
   

  	
  

  07825

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Environetics
  Group 

  Architects

  Stephen Paul Ackerman 

  212-679-8100

  	
   

  	
  Address:

  

  
 Fax:

  	
   

  	
  116 East 27th
  Street

  New York, New York

  

  212-685-9044

  	
   

  	
  

  10016

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Gensler 

  Architects 

  
212-484-2440

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  48 Wall Street,
  Suite 900

  New York, New York

  

  212-468-4440

  	
   

  	
  

  10005

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Contact: 

  Phone:

  	
   

  	
  James Gaddis
  Architect & Interior 

  Architects

  Mr. James Gaddis 

  516-254-6040

  	
   

  	
  Address:

  	
   

  	
  94 Penney Lane 

  West Islip, New York

  	
   

  	
  

  11795

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Contact: 

  Phone:

  	
   

  	
  lu+Bibiliawicx

  Architects

  

  212-982-3633

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  57 East 11th
  Street, 7th fl

  New York, New York

  

  212-962-8006

  	
   

  	
  

  10003

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Mancini
  Duffy/Llewelyn-Davies

  Architects 

  Mr. Jeff Tobin /Mr. Ralph Mancini

  212-393-0100

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  Mancini
  Duffy/Llewelyn-Davies

  Unknown

  

  212-938-1267

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:

  Attention:

  Phone:

  	
   

  	
  Peter Poon
  Architects

  Architects 

  Mr. Peter Poon 

  212-941-6800

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  16 Mercer Street

  New York, New York

  

  212-941-4803

  	
   

  	
  

  10013

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Swanke Hayden
  Connell Ltd

  Architects 

  Mr. Joseph Allotta 

  212-481-9696

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  295 Lafayette
  Street 

  New York, New York

  

  212-219-0059

  	
   

  	
  

  10012

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   Construction /
  General Contractor

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Ambassador Construction

  Construction 

  Jeff Young 

  212.922.1020

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  317 Madison
  Avenue

  New York, NY 

  

  212.949.9762

  	
   

  	
  

  10017

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Barney Skanska
  Construction

  General Contractors

  Ms. Marta J. Glickman 

  212-972-0720

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  136 Madison
  Avenue 

  New York, New York

  

  212-697-7438

  	
   

  	
  

  10016

  

 

 

 1
 

 

 

	
  Name: 

  Phone:

  	
   

  	
  CLK Construction Co, Inc.

  	
   

  	
  Address:

  City/State/Zip:

  	
  317 Madison Avenue, 12th Floor

  New York, New York

  	
   

  	
  

  10017

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  CKR Construction
  

  Concrete 

  Mr. Richard Barbadilo 

  718-384-9191

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  247 Diggs Avenue

  Brooklyn, NY

  

  718-384-5832

  	
   

  	
  

  11222

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Ferran
  Enterprises, Inc.

  Concrete 

  Frank Ferrante 

  718-384-9191

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  44-D5 55th Avenue
  

  

  

  718-784-2109

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Galin
  Construction 

  General Contractor 

  Mr. John Galin 

  212-267-8624

  	
   

  	
  Alias: 

  Address:

  

  Fax:

  	
   

  	
  

  40 Gold Street 

  New York, New York 

  212-962-7201

  	
   

  	
  

  

  10038

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Menegan
  Construction 

  General Contractor 

  Barney Palmieri 

  212-947-6441

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  250 West 30th
  Street

  

  New York, NY 

  212-643-1053

  	
   

  	
  

  10001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Lehrer McGovern
  Bovis, Inc.

  General Contractors 

  Mr. Tony Mannion 

  212-972-0720

  	
   

  	
  

  

  

  Fax:

  	
   

  	
  200 Park Avenue
  (9th Floor)

  New York, NY

  

  212-592-6988

  	
   

  	
  

  10166

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  LIC Construction
  

  Concrete 

  Mr. John Perno 

  718-786-2793

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  44-30A Purvis
  Street 

  Long Island City, New York

  

  718-784-4624

  	
   

  	
  

  11101

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Turner
  Construction Company

  Construction 

  Sophonia Wetch 

  212-229-6000

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  375 Hudson
  Street, 6th floor

  New York, New York

  

  646-252-1130

  	
   

  	
  

  10014

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Artic Electric
  Corporation

  Electrical 

  Mr. Ken Ashendorf 

  212-581-8849

  	
   

  	
  Address:

  	
   

  	
  601 West 50th
  Street 

  New York, New York

  	
   

  	
  

  10019

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  Category: 

  Phone:

  	
   

  	
  Barth-Gross
  Electric Co., Inc.

  Electrical

  	
   

  	
  Address: 

  

  Fax:

  	
   

  	
  110 West 26th
  Street 

  New York, New York

  	
   

  	
  

  10001

  

 

 2
 

 

 

	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  FOREST ELECTRIC CORP 

  Electrician 

  	
   

  	
  Address: 

  City/State/Zip:

  

  Fax:

  	
  TWO PENN PLAZA, 4TH
  FLOOR

  NEW YORK, NY

  	
   

  	
  

  10121

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  RB Samuels 

  Electrical 

  Mr. Al Fishbone

  212-686-6700

  	
   

  	
  Address: 

  

  

  Fax: 

  	
   

  	
  48 West 25th
  Street 

  New York, NY

  

  212-213-4089

  	
   

  	
  

  10010

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Zwicker Electric
  Company, Inc. 

  Electrical 

  Neil DeVincenzo 

  212-477-8400

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  200 Park Avenue
  South 

  New York, New York

  	
   

  	
  

  10003

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Nead Electric

  Electrician

  Ciaco Munzo 

  201.460.5210

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  175 Broad Street

  Carlstadt, NJ 

  

  201.460.9553

  	
   

  	
  

  7072

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  NY Electric

  Electrician

  Sean Burke

  212.962.5515

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  55 John Street 14th
  Floor

  New York, NY

  

  212-962-5505

  	
   

  	
  

  10038

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Knight
  Electrical Services 

  Electrician /Lighting 

  	
   

  	
  Address:

  

  City/State/Zip:

  Fax:

  	
  111 Eighth
  Avenue 

  

  New York, New York

  	
   

  	
  

  

  10011

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:

  Phone:

  	
   

  	
  Genergy Electric
  Company 

  Electrician 

  212-974-5199

  	
   

  	
  Address:

  

  Fax:

  	
   

  	
  353 West 48th
  Street 

  New York, New York 

  212-307-0391

  	
   

  	
  

  10036

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Attention:
  

  Phone:

  	
   

  	
  Conserve
  Electric Supply

  Larry Sullivan 

  718-937-6671

  	
   

  	
  Address:

  

  Fax:

  	
   

  	
  39-05 Crescent
  Street 

  Long Island City, NY

  718-937-4057

  	
   

  	
  

  11101

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Exterior
  Façade

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  Gordon H. Smith
  Corporation 

  Exterior Façade Consultants 

  Mr. Gordon Smith

  212-696-0600

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  200 Madison
  Avenue 

  New York, New York

  

  212-532-8272

  	
   

  	
  

  10016

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Peter Corsell Associates, Inc. 

  Exterior Façade Consultants

  Mr. Peter Corsell/ 

  212-868-2999

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  575 Eighth
  Avenue 

  New York, New York

  

  212-868-4801

  	
   

  	
  

  10018

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fire
  Alarm System

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  QSCS OF NY, INC. 

  Fire Alarm System 

  Bob Gilmore 

  212-244-1771

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  212 West 35th
  Street 

  New York, New York

  

  212-268-5659

  	
   

  	
  

  10001

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVAC

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  AAF
  International

  HVAC (Filter Supplier) 

  

  888.AAF.2003

  	
   

  	
  Address:

  

  City/State/Zip: Fax:

  	
  10300 ORMSBY PARK PLACE

  

  LOUISVILLE, KY

  888.AAF.600

  	
   

  	
  

  

  40223-6169

  	
   

  

 

 3
 

 

 

	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  J &
  Precision 

  HVAC

  JENNIFER DALY

  631-589-1333

  	
   

  	
  

  City/State/Zip: 

  

  Fax:

  	
  

  Bohemia, NY 

  

  631-589-5325

  	
   

  	
  

  11716

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  KABACK 

  HVAC 

  Jim Justice 

  212-645-5100

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  45 West 25th
  Street 

  New York

  

  212-645-8962

  	
   

  	
  

  10010

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  	
   

  	
  Castellano
  motors 

  HVAC 

  

  212.254.7040

  	
   

  	
  Address:
  

  City/State/Zip: 

  

  Fax:

  	
  147 Ridge street 

  New York, New York

  

  212.677.8207

  	
   

  	
  10002

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Electronic
  Drives and Controls 

  HVAC 

  Debbie Deluca 

  973.428.0500

  	
   

  	
  Address:

  City/State/Zip:

  

  Fax:

  	
  17 Eastman Road 

  Parsippany, New Jersey

  

  973.428.0135

  	
   

  	
  07054

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Fresh Meadows
  Mechanical Corp. 

  HVAC

  Michael Russo 

  718.961.6634

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  65-01 Fresh
  Meadow Lane

  Fresh Meadows, NY

  

  718.358.4378

  	
   

  	
  

  11365

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Frank Presti.
  inc

  HVAC

  Frank Presti 

  516.221.5548

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  2260 Henry
  Street

  North Bellmore, NY

  
 516.221.1338

  	
   

  	
  

  11710

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  	
   

  	
  Gilbar
  Industries 

  HVAC Supplier 

  Kathleen Cruz 

  	
   

  	
  Address:

  	
   

  	
  5 West 19 Street

  New York, NY 

  	
   

  	
  

  10011

  	
   

  
	
  Phone:

  	
   

  	
  212.331.8272

  	
   

  	
  Fax:

  	
   

  	
  212.331.8273

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Goodway
  Technologies 

  HVAC 

  Mark Roth 

  203-359-4708

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  420 West Avenue

  Stamford, CT

  

  203.359.9601

  	
   

  	
  

  6902

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Hudson Technologies
  Company HVAC 

  Kevin Mertz

  800.277.3490

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  PO Box 33132 

  Hartford, CT

  

  603.895.2882

  	
   

  	
  

  06150-3132

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  K & S
  Industrial Corp.

  HVAC Supplier

  Kevin Smith

  (718) 981-4655

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  432 Castleton
  Avenue

  Staten Island, NY

  

  (718) 981-4318

  	
   

  	
  

  10301

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  LIMCT

  HVAC

  Denton Taylor 

  516-933-7900

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  100 D-TEC Street

  Hicksville, NY 

  

  516-933-8802

  	
   

  	
  

  11801

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  	
  National Energy Control
  Corporation 

  	
  Address:

  	
   

  	
  312 Darby Road

  	
   

  	
   

  	
   

  
	
  Category: 

  Attention:
  

  Phone:

  	
   

  	
  HVAC supplies

  Chet 

  610.449.9800

  	
   

  	
  

  

  Fax:

  	
   

  	
  Havertown, PA

  

  610.789.7300

  	
   

  	
  19083-4679

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  RC INDUSTRIAL 

  HVAC supplies

  

  201-333-1484

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  P.O.Box A-25 

  Jersey City, NJ

  

  201-333-9248

  	
   

  	
  

  07304

  	
   

  

 

 4
 

 

 

	
  Name: 

  Category; 

  Attention: 

  Phone:

  	
   

  	
  International
  Testing & Balancing 

  Air Balancer 

  Benny Lau 

  518.781.8400

  	
   

  	
  Address:
  

  

  

  Fax:

  	
   

  	
  3941
  Merrick Road 

  Seaford, NY

  

  516.781.8744

  	
   

  	
  

  11783

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Interior Decorating

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:
  

  	
   

  	
  All City Interiors/SMC Decorationg Inc.

  	
  Address:

  	
   

  	
  347 West 36th Street, #1000
  

  New York, New York

  	
   

  	
   

  
	
  Category: 

  	
   

  	
  Floor
  Covering 

  	
   

  	
   

  	
   

  
	
  Phone:

  	
   

  	
  212-695-6593

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   Lighting Contractors

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Lighting
  & Supply of NY, INC. 

  Light Contractor 

  Sam Fuchsman 

  516-375-8485

  	
   

  	
  Address:
  

  

  

  Fax:

  	
   

  	
  East
  Islip, New York 

  

  

  516-632-3422

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:
  

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Petrocelli 

  Light/Electrical 

  Paul Dembinski 

  718-752-2200

  	
   

  	
  Address:
  

  

  

  Fax:

  	
   

  	
  22-09
  Queens Plaza North

  Long Island City, NY

  

  718-786-0695

  	
   

  	
  

  11101-4003

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Locksmith

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  Category:

  Attention:

  Phone:

  	
   

  	
  Calderon

  Locksmith

  I. Calderon
212-233-4585

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  125 Fulton Street
New York, NY

  

  212-964-9732

  	
   

  	
  

  10038

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mechanical

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Edwards
  & Zuck 

  Mechanical / Electrical Engineer 

  Mr. Jack Nedlin 

  212-735-3400

  	
   

  	
  Address: 

  City/State/Zip:

  

  Fax:

  	
  330
  West 42nd Street 

  New York, New York

  

  212-695-1898

  	
   

  	
  

  10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:
  

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Engineered
  Solutions, PC 

  Mechanical / Electrical Engineers 

  Mr. Paul Mattingly 

  201-947-6007

  	
   

  	
  Address:
  

  

  

  Fax:

  	
   

  	
  1
  Bridge Plaza - Suite 340 

  Fort Lee, New Jersey

  

  201-947-7816

  	
   

  	
  

  7024

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:
  

  Category: 

  Attention: 

  Phone:

  	
   

  	
  GC Eng & Associates 

  Mechanical / Electrical 

  Mr. Gene Eng 

  212-695-5313

  	
   

  	
  Address:
  

  

  

  Fax:

  	
   

  	
  141
  West 28th Street 

  New York

  

  212-695-5170

  	
   

  	
  

  10001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:
  

  Category: 

  Attention: 

  Phone:

  	
   

  	
  GPA
  Mechanical Piping of NY 

  SteamFitter 

  Keith Gropper 

  631.789.9711

  	
   

  	
  Address:
  

  

  

  Fax:

  	
   

  	
  60 Ralph Avenue 

  Copiague, New York

  

  631.189.9733

  	
   

  	
  

  11726

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Laszio
  Bodak Engineer, PC 

  Mechanical / Electrical Engineers 

  Mr. Laszio Bodak 

  212-764-0300

  	
   

  	
  Address:
  

  

  

  Fax:

  	
   

  	
  21
  Wst 38th Street 

  New York, New York

  

  212-764-1591

  	
   

  	
  

  10018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  	
   

  	
  P.J. Mechanical Service & Maintenance

  	
  Address:
  

  	
   

  	
  135
  West 18th Street, 2nd floor New York, New York

  	
   

  	
  

  10011

  
	
  Category:
  

  	
   

  	
  Mechanical Contractor 

  	
   

  
	
  Attention:
  

  	
   

  	
  Mr. Peter Pappas 

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Phone:

  	
   

  	
  212-243-2555 

  	
   

  	
  Fax:

  	
   

  	
  212-924-7148
  

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 5
 

 

 

 

	
  Name: 

  Category: 

  Attention:

  Phone:

  	
   

  	
  Penguin Air Conditioning 

  Mechanical Vendor 

  Mr. Paul Shields 

  718-706-2558

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  26 West Street 

  Brooklyn, New York

  

  718-706-2565

  	
   

  	
  

  11222

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Power Cooling Inc. 

  Mechanical Contractor 

  Paul Mclellan 

  718-784-1300

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  43-43 Vernon Blvd. 

  Long Island City, NY

  

  718-937-8418

  	
   

  	
  

  11101

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Syska &
  Hennessy 

  Mechanical Electrical Engineers 

  Mr. Jesse Bhatia 

  212-921-2300

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  11 West 42nd
  Street 

  New York, New York

  

  212-556-3333

  	
   

  	
  

  10036

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Kaback Enterprises, Inc. 

  Mechanical Contractor 

  Jim Justice

  	
   

  	
  Address: 

  

  	
   

  	
  45 West 25th
  Street 7th floor 

  

  New York, NY

  	
   

  	
  

  10010

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  	
   

  	
  Larsen &
  Ruggiero 

  Mechanical Contractor 

  Peter Larsen 

  	
   

  	
  Address:

  	
   

  	
  PO Box 41255

  Staten Island, NY

  	
   

  	
  

  10304

  
	
  Phone:

  	
   

  	
  212.925.7501

  	
   

  	
  Fax:

  	
   

  	
  212.925.7534

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Henrich Lane 

  Mechanical Contractor 

  Mr. Ernie Hennrick 

  718-786-7277

  	
   

  	
  Alias: 

  Address:

  

  Fax:

  	
   

  	
  

  49-22 49th Street 

  Long Island City, New York 

  718-482-1625

  	
   

  	
  

  

  11101

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  American Power Technology 

  Mechanical / Electrical Engineers 

  Mr. Michael Burklewitz 

  516-627-6500

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  3333 New Hyde
  Park Road North Hills, New York

  

  516-627-7212

  	
   

  	
  

  11042

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:
  

  Category: 

  Attention:

  	
   

  	
  Carrier Corporation 

  Mechanical Subcontractors 

  John Schmid

  	
   

  	
  Address:

  	
   

  	
  521 Fifth Avenue 

  New York, New York

  	
   

  	
  

  10176

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metal Maintenance

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Remco 

  Metal 

  Brian Marlowe 

  212-695-4000

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  500 Tenth Avenue 

  New York, New York

  

  212-967-7342

  	
   

  	
  

  10018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Stuart Dean 

  Metal 

  Mr. Larry Moshan 

  212-695-3180

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  366 Tenth Avenue
  

  New York. New York

  

  212-967-0988

  	
   

  	
  

  10001

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Painters

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Albert Perlman,
  Inc. 

  Painters 

  Rob Lustica 

  212.687.5055

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  60 East 42nd
  Street 

  New York, New York

  

  687.6228

  	
   

  	
  

  10165

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Antovel Painting
  Company 

  Painting 

  Mr. Angelo Lopes 

  718-937-3520

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  21-12 44th
  Street 

  Long Island City, New York

  

  718-392-4793

  	
   

  	
  

  11101

  

 

 6
 

 

 

	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  Bond Painting Company, Inc.

  Painting
  

  Mr.
  Stewart Feld 

  212-944-0070

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  42 W. 38th Street, Ste. 902

  New York, New York

  

  212-944-8499

  	
   

  	
  

  10018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Joval Painting Corp.

  320 Belvedere Avenue 

  	
   

  	
  Address: 

  

  City/State/Zip:

  Fax:

  	
  Sol Rubin Painting 

  

  Farmingdale, NY

  	
   

  	
  

  

  11735

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  The White Bear Company

  Painters
  

  John
  LoBianco 

  212-691-3811

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  505 Eighth Avenue

  New
  York, New York

  

  212-265-0216

  	
   

  	
  

  10018

  

 

Plumbers

	
  Name: 

  	
   

  	
  American Contracting Company Inc.

  	
  Address: 

  	
   

  	
  538 West 35th Street 

  New
  York, New York

  	
   

  	
  

  10001

  
	
  Category: 

  	
   

  	
  Plumbers 

  	
   

  
	
  Attention: 

  Phone:

  	
   

  	
  Mr. Richard Silver 

  212-736-6618

  	
   

  	
  

  Fax:

  	
   

  	
  

  212-465-7134

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  Category: 

  Attention:

  Phone:

  	
   

  	
  Joe Delerno

  Plumbers 

  Joe Delerno

  631-226-7330

  	
   

  	
  Address:

  

  

  Fax:

  	
   

  	
  402 Kensington Court

  Copiague, NY

  

  631-225-7205

  	
   

  	
  

  11726

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Manhattan Plumbing

  Plumbing 

  Mr.
  Henry Piemper 

  212-807-1717

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  200 Fifth Avenue 

  New York, New York

  

  212-807-8965

  	
   

  	
  

  10010

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  M Wilson Mechanical, Inc. Plumbing 

  Mark
  Wilson 

  516.922.0288

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  37 Triangle Place 

  Freeport, NY

  	
   

  	
  

  11520

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  Contact:

  	
   

  	
  MJM Plumbing 

  Plumbing
  

  John
  Carbone 

  212-966-2444 

  John Carbone

  	
   

  	
  Address: 

  

  	
   

  	
  268 West Street 

  New
  York, NY

  	
   

  	
  

  10013

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Par Plumbing 

  Plumbing
  

  Mr. Henry
  Piemper 

  212-926-1088

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  60 North Prospect Avenue Lynnbrook, NY

  

  516-593-9089

  	
   

  	
  

  10010

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  S.B.A. 

  Plumbers
  

  Mr. Steven
  Verderame 

  718-786-1100

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  23-30 50th Avenue

  Long Island City, NY

  	
   

  	
  

  11101

  

 

Sprinkler
System

	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  Island Fire Sprinkler

  Sprinkler System

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  81 Keyland Court

  Bohemia, NY

  	
   

  	
  

  11716

  

 7
 

 

 

	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  Rail Sprinkler 

  Sprinkler
  System 

  David
  Israel 

  516-593-2000

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  601 Merrick Road

  LynnBrook,
  New York

  

  516-593-9634

  	
   

  	
  

  11563

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Sirina Fire Protection 

  Sprinkler
  System 

  John Silver 

  516-942-0400

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  151 Herricks Road 

  Garden
  City, New York

  

  516-942-0415

  	
   

  	
  

  11040

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Security

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Phone:

  	
   

  	
  Guardian Service Industries, Inc. Security 

  212-645-9500

  	
   

  	
  Address: 

  

  Fax:

  	
   

  	
  170 Varick Street 

  New
  York, New York 

  212-645-4163

  	
   

  	
  

  10013

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Henry Brothers Electronics Security System 

  Barbara Campoliato 

  201-794-6500

  	
   

  	
  Address: 

  

  City/State/Zip:

  Fax:

  	
  280 Midland Avenue

  

  Saddle
  Brook, NJ 

  201-794-8341

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signage

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Phone:

  	
   

  	
  Forrest Signs 

  New
  York Ny 10022-7744 

  212.319.0100

  	
   

  	
  Address: 

  

  Fax:

  	
   

  	
  949 Second Avenue

  New York, New York 

  212.888.3415

  	
   

  	
  

  10022

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Phone:

  	
   

  	
  The Sign Company 

  Sign
  Vendor 

  212.967.2113

  	
   

  	
  Address: 

  

  Fax:

  	
   

  	
  575 Madison Avenue 

  New York, New York 

  212.967.4119

  	
   

  	
  

  10022

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Structural
  Engineers

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  	
   

  	
  DeSimone & Chaplin & Associates

  Structural
  Engineers 

  	
   

  	
  Address: 

  	
   

  	
  20 Waterside Plaza 

  New
  York, New York

  	
   

  	
  

  10010

  
	
  Attention: 

  	
   

  	
  Mr. Vincent Desimone/Mr. Jim Chapling 

  	
   

  	
   

  	
   

  	
   

  
	
  Phone:

  	
   

  	
  212-532-2211

  	
   

  	
  Fax:

  	
   

  	
  212-481-6108

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Contact: 

  Phone:

  	
   

  	
  James Ruderman, Office of Structural Engineers 

  Mr. Howard Zweig 

  212-643-1414

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  15 West 38th Street 

  New
  York, New York

  

  212-543-1425

  	
   

  	
  10022

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Submetering

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention:
  

  Phone:

  	
   

  	
  Technical Systems 

  Submetering
  

  Mr. Thomas Osborne 

  212-695-3507

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  150 Broadway -15th Floor

  New
  York, New York

  

  212-695-4654

  	
   

  	
  

  10018

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  

  Phone:

  	
   

  	
  Utilities Research Associates, Inc.
  

  Submetering 

  Mr.
  Richard Simon 

  212-765-2025

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  225 West 57th Street

  New
  York, New York

  

  212-265-0216

  	
   

  	
  

  10019

  

 

 

 8
 

 

Water Proofing

	
  Water Proofing

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category:
  

  Attention:
  

  Phone:

  	
   

  	
  Benjamin Maintenance 

  Waterproofers

  Tony Marke

  212-535-8500

  	
   

  	
  Address: 

  

  Brooklyn

  Fax:

  	
   

  	
  5718 2nd Avenue

  

  NY

  718-492-0194

  	
  

  11220-3313

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Henshell & Buccellato

  Waterproofing Consultant

  Mr. Paul Buccellato

  908-530-4734

  	
   

  	
  Address: 

  

  

  Fax:

  	
   

  	
  2 Harding Road

  Red Bank, New Jersey

  

  908-747-8099

  	
  

  07701

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water
  Treatment

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  Category: 

  	
   

  	
  Ambient Water Treatment Consulting, Inc.

  WATER TRMT

  	
  Address:

  	
   

  	
  10 Morris Avenue

  Glen Cove, NY

  	
  

  11542

  
	
  Attention: 

  	
   

  	
  John
  Leitner

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Phone:

  	
   

  	
  516-609-0009

  	
   

  	
  Fax:

  	
   

  	
  212.9444618

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name: 

  Category: 

  Attention: 

  Phone:

  	
   

  	
  Ashland Drew
  Chemical

  Water Treatment

  AL BARBA

  201-246-2510

  	
   

  	
  Address:

  City/State/Zip:

  

  Fax:

  	
  1000 Harrison Avenue

  Kearny, NJ

  

  201.246.1784

  	
  

  7302

  

 

 9

 

Exhibit I

FORM OF SUBORDINATION NON-DISTURBANCE AND ATTORNMENT AGREEMENT

 

EXHIBIT I

SUBORDINATION,
NONDISTURBANCE

AND ATTORNMENT AGREEMENT

Dated:                                                

Among

                                                                                                                 ,

Tenant

and

140 BW LLC,

 

Landlord

and

LANDESBANK
HESSEN-THURINGEN GIROZENTRALE

Lender

LOCATION OF REAL
PROPERTY:

	
  Street Address:

  	
   

  	
  140 Broadway, New York, New York (New York County)

  
	
  Block:

  	
   

  	
  48

  
	
  Lot:

  	
   

  	
  1

  

 

 

Recording requested by, and after recording, please return to:

 

SUBORDINATION,
NON-DISTURBANCE AND ATTORNMENT AGREEMENT

THIS AGREEMENT, made as of this      day
of                , 200     
among                                    a,
                                        
having its principal place of business at                                                                               (“Tenant”),
140 BW LLC, a Delaware limited liability company having an office at                                           (“Landlord”),
and LANDESBANK HESSEN-THURINGEN GIROZENTRALE, a German banking corporation
having an address at Landesbank Hessen-Thüringen Girozentrale, Main Tower, Neue
Mainzer Strasse 52 - 58, 60311 Frankfurt am Main, Germany (“Lender”).

RECITALS:

A.                      Landlord and Tenant entered into that certain Lease (the “Lease”) dated
             as
of               ,
200    with respect to a portion of the property
located at 140 Broadway, New York, New York. The leased premises are described
in the Lease and are referred to herein as the “Premises”, The term “Property,”
as used herein, shall mean the land, buildings and improvements located at 140
Broadway, New York, New York, which are covered by the Mortgages (as
hereinafter defined).

B.                        Lender is the holder of the
mortgages listed in Schedule A annexed hereto (collectively, the “Mortgages”)
and the notes secured thereby.

C.                        Tenant
and Landlord have requested that Lender enter into an agreement on the terms
and conditions herein set forth, and Lender has agreed to enter into this
Agreement.

AGREEMENTS:

NOW, THEREFORE, in consideration of the mutual
covenants hereinafter contained, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto mutually covenant and agree as follows:

1.         Subordination.

(a)       Tenant
hereby consents to the assignment of the Lease by Landlord to Lender as
security for the indebtedness secured by the Mortgage. The parties hereto agree
that the Lease and any extensions, renewals, replacements or modifications
thereof, and all of the right, title and interest of Tenant in and to the
Premises and the Property are and shall be subject and subordinate to the lien
of the Mortgage, to all of the terms thereof, to all renewals, modifications,
extensions, replacements and consolidations thereof, and to all advances
secured thereby.

(b)       Notwithstanding
anything to the contrary set forth above, Lender may at any time subordinate
the Mortgage to the Lease in whole or in part, without any need to obtain
Tenant’s consent, by execution of a written document subordinating the Mortgage
to the Lease to the extent set forth in such document and thereupon the Lease
shall be deemed prior to the Mortgage to the extent set forth in such document
without regard to this Agreement or their

 

respective dates of
execution, delivery and/or recording. In that event, to the extent set forth in
such document, the holder of the Mortgage shall have the same rights with
respect to the Lease as would have existed if the Lease had been executed, and
a memorandum thereof recorded, prior to the execution, delivery and recording
of the Mortgage.

2.         Nondisturbance.
In the event of foreclosure of the Mortgage, or in the event Lender comes into
possession or acquires title to the Property as a result of the enforcement or
foreclosure of the Mortgage, or as a result of the delivery to Lender of a deed
in lieu of foreclosure, Lender agrees that Tenant shall not be disturbed in its
possession of the Premises (and, subject to Paragraph 4 below, Tenant’s rights
under the Lease shall not be affected) unless the Lease has been terminated or
Tenant is in default under the Lease beyond the expiration of any applicable
grace period.

3.         Attornment.
Tenant agrees with Lender that if the interests of Landlord in the Premises
shall be transferred to Lender by reason of foreclosure sale (judicial or
nonjudicial) or other legal proceedings brought by Lender, or by any other
manner, Tenant shall be bound to Lender, upon Tenant’s receipt of notice of
such transfer, under all of the terms, covenants and conditions of the Lease
for the balance of the term thereof remaining and any extensions or renewals
thereof which may be effected in accordance with any option therefor in the
Lease, with the same force and effect as if Lender were the landlord under the
Lease. Tenant does hereby attorn to Lender as its landlord, said attornment to
be effective and self-operative without the execution of any further instrument
on the part of any of the parties hereto immediately upon Lender succeeding to
the interest of Landlord in the Premises. Tenant agrees, however, upon the
election of and written demand by Lender, within ten (10) days after demand of
Lender to execute an instrument in confirmation of the foregoing provisions,
reasonably satisfactory to Lender and Tenant, in which Tenant shall acknowledge
such attornment and shall ratify the terms and condition of its tenancy.

4.         Limit
on Lender’s Obligations. Tenant agrees with Lender that if Lender shall
succeed to the interest of Landlord under the Lease, Lender shall not be (a)
liable for any previous act or omission of any prior landlord (including
Landlord) under the Lease, (b) subject to any offset which had accrued to Tenant
against any prior landlord (including Landlord) (c) obligated to complete any
construction of the Premises, (d) obligated to make any payment to or on behalf
of Tenant (other than refunds or credits of overpayments on account of real
estate tax or operating expense escalations, estimated payments on account of
utilities services or similar items, but only to the extent the funds
representing such overpayments actually were received by Lender) (e) required
to account for any security deposit other than any actually delivered to
Lender, or (f) bound by any previous modification of the Lease or by any
prepayment of more than one month’s Base Rent or Additional Rent (as such terms
are defined in the Lease) unless such modification or prepayment was expressly
approved in writing by Lender.

5.         Default
by Landlord. If Landlord shall default in the performance or observance of
any of the terms, covenants, conditions or agreements in the Lease to be
performed on the part of Landlord, Tenant shall give written notice thereof to
Lender (which shall be delivered simultaneously with a notice thereof to
Landlord), and Lender shall have the right (but not the obligation) to cure
such default. Tenant shall not take any action to terminate, rescind or avoid
the Lease or to withhold any rental thereunder, for a period of sixty (60) days

 

after receipt by Lender of Tenant’s written notice with respect to such
default; provided, however, that in the case of any default which cannot
with reasonable diligence be cured by Landlord or Lender within such 60-day
period, if Landlord or Lender shall proceed promptly to commence to cure such
default and, thereafter, shall prosecute the curing of same with reasonable
diligence, then the time within which such default may be cured shall be
extended for such period as may be necessary to complete the curing of same
(including, without limitation, such time as shall be necessary for Lender to
obtain possession of the Property, if such possession is required for the cure
of the applicable default).

6.         Compliance
with Lease Nondisturbance Provisions. This Agreement constitutes full
compliance with any provisions of the Lease that provide for subordination of
the Lease or commencement of the term of the Lease only upon delivery of a
non-disturbance agreement to Tenant.

7.         Rent
Payments.

(a)       From
and after Tenant’s receipt of written notice from Lender (a “Rent Payment
Notice”), Tenant shall pay all rent and additional rent under the Lease to
Lender or as Lender shall direct in writing. Tenant shall comply with any Rent
Payment Notice notwithstanding any contrary instruction, direction or assertion
from Landlord. Lender’s delivery to Tenant of a Rent Payment Notice, or Tenant’s
compliance therewith, shall not be deemed to: (i) cause Lender to succeed to or
to assume any obligations or responsibilities of Landlord under the Lease, all
of which shall continue to be performed and discharged solely by Landlord
unless and until an attornment bas occurred pursuant to this Agreement or (ii)
relieve Landlord of any obligations under the Lease.

Landlord irrevocably directs Tenant to comply with any
Rent Payment Notice, notwithstanding any contrary direction, instruction, or
assertion by Landlord. Tenant shall be entitled to rely on any Rent Payment
Notice. Payments made in accordance therewith shall satisfy Tenant’s obligation
under the Lease as to such payments, as if paid to Landlord. Landlord hereby
releases Tenant from, and shall indemnify and hold Tenant harmless from and
against, any and all loss, claim, damage, liability, cost or expense (including
payment of reasonable attorneys’ fees and disbursements) arising from any claim
based upon Tenant’s compliance with any Rent Payment Notice. Landlord shall
look solely to Lender with respect” to any claims Landlord may have on account
of an incorrect or wrongful Rent Payment Notice.

8.         Successors
and Assigns. This Agreement shall bind and inure to the benefit of the
parties hereto and their respective successors and assigns.

9.         Definitions.
As used herein: (a) the term “Tenant” shall include any successors and/or
assigns of Tenant named herein; (b) the words “foreclosure” and “foreclosure
sale” shall be deemed to include the acquisition of Landlord’s estate in the
Premises by voluntary deed (or assignment) in lieu of foreclosure; and (c) the
word “Lender” shall include the Lender herein specifically named and any of its
successors and assigns, including anyone who shall have succeeded to Landlord’s
interest in the Property by, through or under foreclosure of the Mortgage or
the delivery of a deed in lieu of foreclosure (including a nominee or designee
of Lender or a purchaser at a foreclosure sale).

 

10.       Governing
Law, Interpretation. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to similar
agreements made and to be performed entirely within said State. This Agreement
shall be construed without regard to any presumption or rule requiring
construction against the party causing this Agreement to be drafted.

11.       No
Modification or Waiver. This Agreement shall not be modified, amended or
terminated, nor may any provision hereof be waived, except by a written
agreement signed by the party against whom enforcement of any such
modification, amendment, termination or waiver is sought.

12.       Number
and Gender. Any number or gender, as used herein, shall include any other
number or gender, as the context may require.

13.       Notices.
Notices given hereunder shall be sent to the parties at their addresses set
forth above by prepaid registered or certified mail, return receipt requested,
or by hand delivery or overnight delivery service which provides proof of
receipt.

14.       Counterparts.
This Agreement may be executed in counterparts, each of which shall constitute
an original and all of which shall be one and the same instrument.

 

15.       Consent.
Lender hereby consents to the Lease.

	
  TENANT:

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  LANDES BANK HESSEN-THURINGEN GIROZENTRALE

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  LANDLORD:

  
	
   

  
	
  140 BW LLC

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  

  
	
   

  	
  Title:

  

 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  ) ss.:

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On the           day
of                    ,
200     before me, the undersigned, 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(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), that by his/her/their signature on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted;
executed the instrument.

	
  (Notary stamp/Seal)

  	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  	
   

  

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  ) ss.:

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On the           day
of                    ,
200     before me, the undersigned, 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(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), that by his/her/their signature on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted;
executed the instrument.

	
  (Notary stamp/Seal)

  	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  	
   

  

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  ) ss.:

  	
   

  
	
  COUNTY OF

  	
  )

  	
   

  

 

On the           day
of                    ,
200     before me, the undersigned, 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(s) whose name(s) is (are) subscribed to the within instrument
and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), that by his/her/their signature on the instrument, the
individual(s), or the person upon behalf of which the individual(s) acted;
executed the instrument.

	
  (Notary stamp/Seal)

  	
   

  	
   

  	
   

  
	
   

  	
  Notary Public

  	
   

  	
   

  

 

 

Exhibit J

HVAC SPECIFICATIONS

The Building has a central heating,
ventilation and air conditioning system. Based on occupancy not to exceed one
(1) person per 100 usable square feet of floor area and an electrical load not
to exceed 6 watts per useable square foot, the system is capable of meeting the
following performance criteria:

HEATING:

Interior Space Conditions / Outdoor Air
Condition

68 degrees Fahrenheit
dry bulb (+/- 2 degrees dry bulb) / Greater than 5 degrees Fahrenheit

COOLING:

76 degrees Fahrenheit dry
bulb (+/- 2 degrees dry bulb) / Less than 95 degrees Fahrenheit dry bulb, 50%
relative humidity, or 75 degrees Fahrenheit wet bulb

 

Exhibit K

BUILDING CLEANING
SPECIFICATIONS

 

140 Broadway

Cleaning Specifications

*Note: Items in bold reflect
tenant extras per tenants’ request.

 

140 Broadway

Cleaning Specifications

	
  Office Areas

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Constant surveillance
  of all common areas to insure cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Empty and clean (when
  necessary) all waste receptacles and remove collected waste and place into freight elevator lobbies. Replace plastic
  receptacle liners.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Dininfect waste
  receptacles.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Vacuum all high traffic
  area rugs and carpets. Sweep or vacuum all carpet edging. High traffic area
  shall be defined as all carpeted area excluding cubicle area and office area
  rugs and carpeting.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Vacuum all rugs and
  carpets.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Dust or wipe clean all
  furniture, files, desk lamps, fixtures, paneling, frames, convector tops,
  window sills, and other horizontal surfaces with a treated cloth. Materials
  on furniture will not be rearranged

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Damp wipe and polish
  all glass furniture trays.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Remove all marks and
  smudges from vertical surfaces (to 70”), including doors, door frames, around
  light switches, entrance glass, partitions, pictures and wall decorations.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Spot clean vinyl
  wallpaper

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Remove all marks and
  smudges from base boards, molding, convector covers, etc.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Push all chairs up into
  desk

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Leave all office doors
  as found (i.e. open doors open, closed doors closed, locked doors locked,
  etc.)

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Wash all base boards,
  molding, convector covers, etc.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Vacuum all fabric
  covered walls

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Sweep and/or dust mop
  all uncarpeted floors (including all stone, composition tile, and wood flooring)
  employing dust control techniques.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Damp dust and sanitize
  all telephones; dust under telephones.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Wash waste receptacles
  if liquids have leaked through plastic liners (as necessary).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  18

  	
   

  	
  Damp mop floors where
  spillage occurred (as necessary).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  19

  	
   

  	
  Dress and spray-buff all
  composition tile floors to maintain scuff-free gloss once per week.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  20

  	
   

  	
  Dress and spray-buff stone and
  wood flooring

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  21

  	
   

  	
  Dust lights, slot
  diffusers, and convector covers (as necessary).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  22

  	
   

  	
  Vacuum/dust all blinds
  (as necessary).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  23

  	
   

  	
  Strip and reseal all
  composition tile floors.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  24

  	
   

  	
  Damp dust diffusers,
  wall grills, registers and other ventilating louvers.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  25

  	
   

  	
  Damp dust all areas not
  reached in daily, weekly or monthly cleaning.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  26

  	
   

  	
  Damp dust exterior
  surfaces of lighting fixtures, including glass and plastic enclosures (once
  per year).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  

 

 

	
  Office Areas

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
  27

  	
   

  	
  Dust and wipe clean all
  closet shelving when empty and carpet sweep or dry mop all floors in empty
  closets.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28

  	
   

  	
  Dust clean all surfaces
  such as walls, partitions, door backs, and other surfaces less than 80 inches
  in height.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  29

  	
   

  	
  Wipe sills, interior
  metal window frames, mullions, convector covers, and/or other interior metal
  surfaces of the perimeter walls of the building.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  30

  	
   

  	
  Spot clean small spots
  requiring immediate removal (tenant request).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  31

  	
   

  	
  Clean and dust Fire
  Extinguishers and Cabinet

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  32

  	
   

  	
  Damp wipe wooden doors.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  33

  	
   

  	
  All glass and ceramic
  walls shall be damp wiped and free of dust and lint at all times.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  34

  	
   

  	
  Wash, disinfect and dry
  polish water cooler & drinking fountains

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  35

  	
   

  	
  Clean entrance doors
  and adjacent glass panels. Clean glass vision panels.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  36

  	
   

  	
  Dust and damp wipe all
  louvers, light fixtures, and life safety equipment.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  37

  	
   

  	
  Vacuum all peripheral
  air conditioning units semi-annually

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  38

  	
   

  	
  Vacuum all louvers,
  light fixture lenses, and ventilating grills; dust light fixtures.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  39

  	
   

  	
  Maintain thresholds and
  door saddles clean of scuff marks and debris

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  40

  	
   

  	
  Maintain compliance
  with recycling program

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41

  	
   

  	
  Whisk broom upholstered furniture and under sofa
  cusions.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42

  	
   

  	
  Venetian blinds shall be lowered and tilted to keep
  out the sun, where applicable.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43

  	
   

  	
  Dust all pictures, frames, charts, graphs, similar
  wall hangings, and all other items not
  reached in nightly cleaning.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  

 

 

	
  Restrooms

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Check restrooms for
  toilet tissue, paper towels, and soap replacement. Wipe down and clean all
  lavatory tops and fixtures. Police restrooms for trash. Remove trash. Mop
  floor as required. Test all fixtures and report malfunctions in writing.

  	
   

  	
  2X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Supply toilet tissue,
  soap and towels to restrooms and sanitary napkins to ladies’ room. Rolls of
  paper less than 1/4 full are to be replaced.

  	
   

  	
  2X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Constant surveillance
  of areas to insure cleanliness. Report unusual conditions to Management.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Sweep, wet mop,
  disinfect, and rinse floor with germicidal solution. Clean all edges to
  prevent build-up. No standing water should be left on the floor.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Clean and polish all
  mirrors, bright work, and enameled surfaces.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Wash and disinfect all
  basins, urinals, and bowls using non-abrasive cleaners to remove stains and
  clean under-sides of rim on urinals and bowls.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Scrub all fixtures to
  remove all stains and scaling.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Wash and disinfect both
  sides of all toilet seats.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Spot clean all
  partitions, tile walls, and outside surfaces of all dispensers and
  receptacles. Damp wipe all lavatory tops and remove all water spots from wall
  finish materials next to dispensers and receptacles.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  All glass and ceramic
  walls shall be damp wiped and free of dust and lint at all times.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Empty and sanitize all
  trash receptacles and sanitary disposals.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Fill toilet tissue,
  soap, towel, and sanitary napkin dispensers. Rolls of paper less than half
  full are to be replaced.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Clean flushometers,
  piping, toilet seat hinges, and other metal.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Machine scrub all
  floors with germicidal solution

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Dump at least one
  gallon of water down each restroom floor drain and wipe clean each drain
  grill.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  16

  	
   

  	
  Thoroughly wash and
  polish all partitions, tile walls, dispensers, and receptacles. Stabilizing
  bars, hardware, interconnecting and wall mounting brackets shall be kept free
  of dust and lint at all times.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Dust all louvers, light
  fixture lenses, and ventilating grills; dust light fixtures.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  18

  	
   

  	
  Test all fixtures and
  hardware and report all malfunctions in writing.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  19

  	
   

  	
  It is the intention to
  keep the restrooms thoroughly cleaned and not to use a disinfectant or
  deodorant to kill odor. If a disinfectant is necessary, an odorless product
  must be used.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Lobby

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  l

  	
   

  	
  Constant surveillance
  of areas to insure cleanliness. Maintain lobby floors in clean condition.
  Police front desk to ensure a clean, professional appearance.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  During inclement
  weather, place out rain mats. Sweep as necessary. Remove mats accordingly.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Sweep and heavy wash
  non-polished and stone floors with approved, non hazing, pH neutral, soap
  free, detergent based cleaner. Thoroughly rinse and remove excess water
  immediately.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Dust clean all vertical
  surfaces. Remove all graffiti matter on metal, wood, glass, or stone surfaces
  immediately, interior and exterior.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Vacuum all elevator
  door saddles. Wash and/or scrub clean, as required. Clean all metal doors,
  handrails and all revolving doors and drums of revolving doors, interior and
  exterior.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Clean and polish all
  metal doors, door frames, transoms, etc.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Damp wipe and dry
  elevator panels, call buttons and Fire Command Panel.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Clean all furniture and
  security areas. Clean tops and sides of Security Desk, front and rear.
  Maintain security desk following offices area specification.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Dust all walls, wash,
  dust and polish, as necessary, including all wood, metal, glass, and stone
  surfaces less than 80 inches in height

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Dust all walls, wash,
  dust and polish, as necessary, including all wood, metal, glass, and stone
  surfaces greater than 80 inches in height - SEMIANNUALLY

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  11

  	
   

  	
  Spot clean all glass

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Scrub with an approved,
  non scratching, stiff bristle brush, all non-polished stone flooring, as
  necessary, but not less than 2X weekly, using an approved non-hazing, pH
  neutral, soap free, detergent based cleaner. Rinse thoroughly and removes
  excess water immediately.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  13

  	
   

  	
  Wash all ceiling lights
  and all air diffusers/grills, as required.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  14

  	
   

  	
  Wash all vertical
  surfaces and clean niches, as needed.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  15

  	
   

  	
  Clean/wash/shampoo rain
  mats, as required, to maintain top quality appearance levels. Remove gums and
  spots from mats nightly.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Elevator Lobbies

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  l

  	
   

  	
  Constant surveillance
  of elevator lobby areas to insure cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Remove fingerprints and
  smudges from glass entrance doors.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Dust wooden walls, (oil
  as necessary to cover scratches, wipe excess oil — semi-annual or as
  necessary).

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Dust and wipe clean
  Fabric Wall Covering

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Dust and wipe clean all
  common area furniture

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Sweep and/or dust mop
  lobby flooring. Heavy wash and dress (as necessary, depending upon floor
  materials).

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Vacuum all rugs and
  carpets. Sweep or vacuum all carpet edging.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Buff lobby flooring (as
  necessary, depending upon floor materials).

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Spot remove carpet stains.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  10

  	
   

  	
  All glass and ceramic
  walls shall be damp wiped and free of dust and lint at all times.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  11

  	
   

  	
  Shampoo or other methods of
  soil removal from carpet (as necessary per tenant Request)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  12

  	
   

  	
  Dust walls (as
  necessary).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  13

  	
   

  	
  Spot wash walls (as
  necessary).

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Thoroughly wash walls
  (as necessary).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  15

  	
   

  	
  Vacuum all louvers,
  light fixture lenses, and ventilating grills; dust light fixtures.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  16

  	
   

  	
  Dust and wipe clean all
  signage.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  17

  	
   

  	
  Clean glass entrance
  doors and adjacent glass panels.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Elevators

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Constant surveillance
  of elevator lobby areas to insure cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Vacuum all rugs and
  carpets. Sweep or vacuum all carpet edging.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Dust light lenses and
  damp wipe if necessary. Remove foreign matter from top of light fixtures in
  elevator cabs.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Wipe down & polish
  panels of elevator cabs and remove any graffiti.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Wipe down all surfaces
  in cab, indicators, and elevator doors using an approved cleaner and polish.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Dust or damp wipe
  finished metal and floor buttons.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Clean and polish all
  lobby thresholds. (shall extend 6 inches beyond threshold).

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Vacuum & scrub
  clean elevator saddles and thresholds on all floors of the bldg.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Vacuum all rugs and
  carpets. Sweep or vacuum all carpet edging. Shampoo carpet as necessary.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Freight Operator to be
  provided from 7:30am until 12:00 midnight

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Mechanical
  Rooms

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Constant surveillance
  of areas to insure cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Empty and clean (when
  necessary) all waste receptacles and remove collected waste from areas. Replace plastic receptacle liners.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Wash waste receptacles
  if liquids have leaked through liners (as necessary).

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
  4

  	
   

  	
  Sweep and/or dust mop
  all uncarpeted floors employing dust control techniques.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Dress and spray-buff
  all composition tile floors to maintain scuff-free gloss

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Strip and reseal all
  composition tile floors.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Machinery and
  equipment, overhead pipes, ledges, door frames and other horizontal and
  vertical surfaces shall be dusted quarterly. The manager shall be totally
  responsible for determining equipment that should not be dusted.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  8

  	
   

  	
  Walls, doors and other
  horizontal surfaces in high traffic areas shall be spot cleaned weekly.
  Spillage and other adherents shall be removed immediately.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Roof shall be policed,
  and cleaned as required.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Common
  Building Stairways and Landings

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Constant surveillance
  of areas to insure cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Police for trash,
  remove gum daily.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Sweep/spot mop no less
  than daily, damp mop weekly.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Dust handrails, fire
  hoses, and other vertical members. All handrails, side panels and risers
  shall be damp wiped.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  5

  	
   

  	
  Dust light fixtures.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  6

  	
   

  	
  Dust/wash all vents and
  painted piping.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  7

  	
   

  	
  Remove all fingerprints
  and smudges, both sides of fire doors on each floor and spills and other
  adherents from all steps and landings.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  
	
  8

  	
   

  	
  Clean/wash transoms
  high and low.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  

 

 

	
  Property
  Management Office, Engineering Office

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Constant surveillance
  of areas to insure cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Maintain Engineering
  and Property Management offices in accordance with a class “A” office
  building and to this specification hereon.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Vacuum and dust
  completely nightly.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Clean and sanitize all
  telephones nightly.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Clean pantry stations
  nightly, including cups and coffee pots. Defrost and clean refrigerators
  monthly.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Clean lavatories,
  lunchrooms, locker rooms and showers.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Sweep then mop VCT tile
  nightly.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Spray buff VCT tile not
  less than weekly.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Strip & refinish
  VCT tile, as necessary, but not less than monthly. Spot clean carpet nightly.
  Shampoo quarterly using an approved, low moisture, manufacturer accepted
  method.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Exterior

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (8AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Constant surveillance
  of areas to insure cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Continually police for
  debris and clean out all ash urns.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Clean entrance glass
  doors and revolving doors 3X/day.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  Keep all curb areas
  clean including sidewalk and street junctions. Clean around trees and pick up
  debris.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  In addition to glass
  doors and revolving doors, spot clean all lobby glass inside and out.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Water all exterior
  planters on Broadway not less than 1 time per week for at least 10 minutes
  per planter.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  Immediately upon
  accumulation remove all ice and snow from all entrances, surrounding
  sidewalks (6 to 10 foot pathway) and street to allow pedestrian access. Apply
  sand or sand and snow melt mixture as conditions require.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  8AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Sweep all ramps and
  stairs.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8

  	
   

  	
  Hose down sidewalks
  daily when weather permits prior to 8:00am.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  9

  	
   

  	
  Steam and/or power wash
  sidewalks/docks.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  10

  	
   

  	
  Scrub clean all stone
  areas.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11

  	
   

  	
  Lightly wash all
  vertical walls as required.

  	
   

  	
   

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  12

  	
   

  	
  Police for trash - all areas
  including planting beds and along curb.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13

  	
   

  	
  Empty all trash and ash
  trays

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  14

  	
   

  	
  Remove gum.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  Trash and
  Shredding Removal & Recycling

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Constant surveillance of areas to insure
  cleanliness.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  All waste shall be collected from each floor and
  removed through the service elevator. The only authorized collection point is
  the service elevator landing on each floor. Accumulation of waste shall not
  occur in any other areas.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3

  	
   

  	
  The contractor shall separate all recyclable trash
  according to recycling program adopted and approved by the manager and Local
  Law #87.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4

  	
   

  	
  Waste and/or rubbish bags shall be furnished by
  Contractor and shall be adequate to hold contents without breaking.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5

  	
   

  	
  Collect and remove waste paper, cardboard boxes
  (contractor to flatten) and waste material to trash retention area for
  collection. The service elevator shall be the only authorized conveyance for
  this transfer of waste from the floors to the waste recycling and collection
  points specified by the manager.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6

  	
   

  	
  The Contractor shall be familiar with, and adhere
  to, Building procedures and policies, regulations in Local Law #87 and any
  other relevant ordinances which may exist at this time or come into existence
  during the term of this agreement.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7

  	
   

  	
  Refuse when placed out for collection, must at all
  times be maintained in a neat, clean, and closed condition, and the area
  around them must also remain neat and clean.
  After collection, receptacles must be cleaned and stored within 2 hours of beginning.

  	
   

  	
  X

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

	
  General

  	
   

  	
  D

  	
   

  	
  W

  	
   

  	
  M

  	
   

  	
  Q

  	
   

  	
  O

  
	
   

  	
   

  	
  Services to be provided during the day (6AM -
  6PM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1

  	
   

  	
  Miscellaneous General Porter Services as required
  throughout the day - clean spills, move
  boxes, and other special requests. (As required)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  X

  
	
   

  	
   

  	
  Services to be provided during the night (6PM -
  6AM)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2

  	
   

  	
  Keep slop-sink rooms in clean, neat and orderly
  condition.

  	
   

  	
  X

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]