Document:

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                                                                    EXHIBIT 10.1

                             DATED 10th October 1988

                              UNIQUE JEANS LIMITED

                                     - to -

                         HULTON PICTURE COMPANY LIMITED
                                      -and-
                                 MR. B. DEUTSCH

                                   ----------

                                      LEASE

                           re: 21/31 Woodfield Place,
                                  London, W.9.

                                   ----------

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                           21/31 Woodfield Place W.9.
                                  Ground Floor
                                  Not To Scale
                        For Identification Purposes Only

                                  [FLOOR PLAN]

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THIS LEASE is made the Tenth day of October One thousand nine hundred and
eighty-eight, BETWEEN UNIQUE JEANS LIMITED whose registered office is situate at
21/31 Woodfield Place London W.9. (hereinafter called "the Landlord of the first
part HULTON PICTURE COMPANY LIMITED whose registered office is situate at 87/89
Baker Street London W1M 1AJ (hereinafter called "the Tenant") of the second part
and BRIAN DEUTSCH of Flat ( ) Eaton Square London S.W.1. (hereinafter called
"the Guarantor") of the third part

NOW THIS DEED WITNESSETH as follows:

1.       IN these presents where the context so admits the following definitions
shall apply:

(A)      "the Landlord" includes the person for the time being entitled to the
         reversion immediately expectant on the term hereby granted

(B)      "the Tenant" includes the successors and assigns of the Tenant

(C)      Any reference to any Act of Parliament includes any modification or
         re-enactment thereof for the time being in force and every instrument
         order direction regulations bye-law permission licence consent
         condition scheme and other such matter made in pursuance of any such
         Act

(D)      If the Tenant or any guarantor for the Tenant shall at any time be more
         than one person any reference to the Tenant or such guarantor shall
         include a reference to each such person and any obligation on the part
         of the Tenant or such guarantor shall take effect as a joint and
         several obligation

(E)      Words importing the singular shall include the plural and vice versa
         and words importing persons shall include Corporations and vice versa
         and words importing the masculine gender shall include the feminine
         gender and vice versa

                                       (1)

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(F)      "the Term" means the term of years hereby created and any statutory
         continuation thereof

(G)      "these presents" means this Lease and any document which is
         supplemental hereto or which is expressed to be collateral herewith or
         which is entered into pursuant to or in accordance with the terms
         hereof

2.       IN consideration of the rents and covenants on the part of the Tenant
hereinafter reserved and contained the Landlord HEREBY DEMISES unto the Tenant
ALL THAT the premises more particularly described in the First Schedule hereto
(hereinafter referred to as "the demised premises") EXCEPT AND RESERVING as
mentioned in the Second Schedule hereto TO HOLD the same subject to all rights
easements quasi-easements and privileges to which the demised premises are or
may be subject including but without prejudice to the generality of the
foregoing all matters contained or referred to in the Entries on the Register of
the Landlord's Title Number NGL 220299 at H.M. Land Registry and subject to and
with the benefit of an Agreement dated the 20th day of August 1986 between the
Inner London Education Authority (1) and Legal and General Assurance Society
Limited (2) (hereinafter called "the Agreement") unto the Tenant for a term of
TWENTY-EIGHT YEARS (determinable as hereinafter provided) commencing on the
Twenty-ninth day of September One thousand nine hundred and eighty-eight
YIELDING AND PAYING THEREFOR during the term and proportionately for any less
time than a year FIRST the clear yearly rent of ONE HUNDRED AND SIXTY THOUSAND
POUNDS ((pound)160,000.00.) per annum (subject to variation as hereinafter
mentioned) to be paid in advance by equal quarterly payments on the usual
Quarter Days in every year clear of all deductions whatsoever the first of such
payments in respect of the period from the Twenty-ninth day of September One
thousand nine hundred and eighty-eight until the Twenty-fifth day of December
One

                                       (2)

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                                   [SITE PLAN]

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thousand nine hundred and eighty-eight to be made on the Twenty-ninth day of
September One thousand nine hundred and eighty-eight AND SECONDLY by way of
additional rent on demand all sums which the Landlord may from time to time pay
for insuring and keeping insured the demised premises and effecting such other
insurance as the Landlord may consider to be appropriate in accordance with the
terms of these presents and in respect of insurance against loss of rent
effected by the Landlord pursuant to the terms of these presents

3.       THE Tenant HEREBY COVENANTS with the Landlord in manner following that
is to say:

(1)      To pay the yearly rents hereinbefore reserved on the days and in manner
         aforesaid

(2)      To pay and discharge all rates taxes assessments outgoings and
         impositions whatsoever (whether imposed by statute or otherwise and
         whether of a national or local character and whether or not of a
         capital or non-recurring nature and even though of a wholly novel
         character) now or at any time hereafter assessed or charged on the
         demised premises or part thereof or payable by the owner or occupier in
         respect thereof (except any tax payable by the Landlord as a direct
         result of a dealing by the Landlord with its reversionary interest in
         the demised premises or the receipt by the Landlord of the said yearly
         rent) and in the event of such outgoings being assessed on the demised
         premises or the common parts or service areas or other property used
         jointly by the Tenant and others to pay a fair proportion thereof to be
         decided by the Landlord or its Agent in their absolute discretion (save
         in case of manifest error) and to keep the Landlord indemnified in
         respect of any outgoings which are the responsibility of the Tenant
         hereunder

                                       (3)

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(3)(A)   To pay for all gas water electricity and other services consumed or
         used on the demised premises

   (B)   To observe and perform all covenants and restrictions affecting the
         demised premises as the same are contained or referred to in the
         Landlord's Title at H.M. Land Registry and to indemnify the Landlord
         against any breach or non-performance thereof

   (C)   To observe and perform the obligations on the part of the Licensee as
         defined by and contained in the Agreement and to indemnify the Landlord
         against any breach or non-performance thereof and not to do anything
         which may result in the Agreement being terminated and without
         prejudice to the generality of the foregoing to pay the licence fee
         referred to therein on the due date specified for payment in the
         Agreement

(4)      To pay to the Landlord on demand by way of additional rent a fair
         proportion of the costs and expenses in respect of repairing decorating
         cleansing and lighting and providing services to all ways roads
         pavements yards sewers drains pipes cables party boundary and other
         walls or fences or other structures or services or the appurtenances
         thereto or any other matters of any kind used or capable of being used
         by the demised premises whether exclusively or in common with other
         persons or premises and the cost of complying with all Acts of
         Parliament and other statutory requirements relating to the demised
         premises and other premises and common parts and services as aforesaid
         and the cost of employing necessary staff and/or managing agents to
         carry out or supervise the carrying out of such works as aforesaid and
         in the event of any dispute in respect of such matters such proportion
         shall be conclusively determined by the Landlord's Surveyor who shall
         act as an expert and not as an arbitrator and whose decision as to all
         matters of fact (save as to manifest error) shall be final and binding
         on the Tenant

                                       (4)

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(5)(A)   In every fifth year of the term and in the last six months thereof but
         not more than twice in any period of two consecutive years howsoever
         determined to decorate the inside of the demised premises including all
         the inside wall and iron or other metalwork and all walls and ceilings
         forming part thereof with three coats of good quality paint or polish
         and with paper for those parts normally papered or other suitable and
         appropriate materials of good quality in a proper and workmanlike
         manner and to the reasonable satisfaction of the Landlord or its Agents
         such decorations in the last six months of the said term to be executed
         in such colours patterns and materials as the Landlord may reasonably
         and properly require and the Tenant shall at the same time as every
         interior decoration as aforesaid wash down all tiles faiences glazed
         bricks and similar washable surfaces of the demised premises

   (B)   In every third year of the term and in the last six months thereof (but
         not more than twice in any period of two consecutive years howsoever
         determined in a proper and workmanlike manner to prepare and paint all
         the outside woodwork metal stone stucco cement and other work at the
         demised premises usually or required to be painted with three coats of
         good quality paint and as often as may be reasonably necessary to clean
         repoint and repaint and treat in a suitable manner for its maintenance
         in good condition all the outside hardwood metal brickwork and polished
         stonework and to wash all tiles glazed bricks and similar washable
         surfaces Provided that the painting and redecorating hereinbefore
         referred to in the last six months of the term shall be in the colour
         and/or colours previously approved by the Landlord in writing (such
         approval not to be unreasonably withheld)

                                       (5)

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(6)(A)   From time to time and at all times during the term well and
         substantially to repair replace (but so that this obligation shall not
         extend to the rebuilding of the whole of the demised premises) cleanse
         put and keep in good and substantial and decorative repair and
         condition (whatever their present condition) the demised premises and
         all appurtenances thereto including (but without prejudice to the
         generality of the foregoing) all shop fronts all doors and door frames
         and windows and window frames and skylights and locks latches and
         fasteners and all wires pipes cables cisterns sewers sanitary apparatus
         electric gas drainage or water systems and other services situate
         within the boundaries of the demised premises and whether or not
         serving the same and all plant and machinery forming part of the
         demised premises and all such other services as aforesaid exclusively
         used by or serving the demised premises and the Landlord's fixtures and
         fittings belonging to the demised premises of whatsoever nature and to
         put and keep in good and substantial repair and condition and to keep
         properly cultivated (as the case may be) all roads parking areas and
         other land and facilities forming part of the demised premises (damage
         by fire or other risks insured against by the Landlord excepted save to
         the extent that the policy or policies of insurance effected by the
         Landlord shall be rendered void or payment of the insurance monies
         thereunder be refused in whole or in part by reason of or arising out
         of any act omission neglect or default by or on the part of the Tenant
         or any of its agents licensees or invitees) and to replace all missing
         keys and renew all washers to taps and ball valves (if any) as and when
         necessary and to keep all water pipes and water fittings to the demised
         premises protected from frost leakage or other occurrences and as and
         when necessary to

                                       (6)

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         clean and treat in an appropriate manner to the reasonable satisfaction
         of the Landlord's Surveyors all materials surfaces and finishes of the
         demised premises and all doors and windows and window frames therein
         which ought normally to be so cleaned and treated

   (B)   To clean the windows of the demised premises at least once in every
         month during the term

(7)      During the continuance of the term to keep the glass in the windows of
         the demised premises clean and the plate glass (if any) insured against
         damage in a responsible office approved by the Landlord in the joint
         names of the Landlord and the Tenant and whenever required to produce
         to the Landlord the policy and the receipt for the last premium in
         respect of such insurance and in case of destruction of or damage to
         the plate glass windows to lay out the monies received in respect of
         such insurance in reinstating the same with glass of a quality and
         thickness which is in no way inferior to that used at present and in
         case such monies shall be insufficient for that purpose to make good
         the deficiency Provided that if such reinstatement shall be prevented
         or frustrated (whether as to the whole or as to part) all such
         insurance monies relating to the reinstating so prevented or frustrated
         shall belong to and shall be paid by the Tenant to the Landlord
         together with the amount of such deficiency in default of agreement
         between the Landlord and the Tenant as to the amount of such deficiency
         the matter shall be referred to arbitration in accordance with the
         provisions of Clause 5(7) below

                                       (7)

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(8)      At the end or sooner determination of the term hereby granted to yield
         up the demised premises (Tenant's fixtures and fittings belonging to
         the Tenant only excepted and subject to the Tenant making good all
         damage to the demised premises resulting from the removal thereof)
         repaired and kept in conformity with the Tenant's covenants in that
         respect herein contained

(9)      To permit the Landlord and its servants or agents at all reasonable
         times during normal business hours and by prior appointment with (save
         in case of emergency) the Tenant to view the demised premises with
         others and to enter into and examine the condition thereof and take a
         schedule of fixtures therein and in case any defects disrepair removal
         of fixtures or unauthorised alterations or additions or other breach of
         covenant shall then be found for which the Tenant is liable under the
         terms of these presents the Tenant will upon written notice thereof
         commence and diligently proceed to execute all repairs works
         replacements or removals required within two months after any such
         notice to the reasonable satisfaction of the Landlord or its Surveyor
         and in case of default it shall be lawful for workmen or agents of the
         Landlord to enter into the demised premises and execute such works
         replacements or removals and all expenses incurred thereby together
         with interest thereon as hereinafter provided from the date of
         expenditure shall on demand be paid by the Tenant to the Landlord and
         shall be recoverable as if the same were rent in arrear

(10)     Not to damage or use the demised premises in any manner so as to cause
         any nuisance damage or annoyance to any neighbouring or adjoining
         property of the Landlord and to keep the demised premises in a clean
         and tidy condition and not to cause or permit any obstruction or damage
         to any gutters drains sewers or pipes

                                       (8)

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         in or serving the demised premises and in the event of such obstruction
         or damage forthwith clear or to make good the same to the reasonable
         satisfaction of the Landlord

(11)     Not to effect any insurance of the demised premises or the Landlord's
         fixtures and fittings therein and without prejudice to the generality
         of the foregoing to pay forthwith to the Landlord or if the Landlord so
         requires to apply in making good the loss or damage in respect of which
         the same shall have been received all monies becoming payable to the
         Tenant under any insurance of the demised premises or any part thereof

(12)     That nothing shall be done on the demised premises which may increase
         the premium payable for the insurance of the demised premises or which
         may make void or voidable any policy for such insurance and forthwith
         upon the happening of any event or thing against which insurance has
         been effected as herein provided to give notice thereof to the Landlord

(13)     If the payment of any monies due under any insurance policy effected by
         the Landlord pursuant to the terms of these presents shall be withheld
         in whole or in part as a result of any act neglect or omission on the
         part of the Tenant or any agent servant licensee or invitee of the
         Tenant or any person holding through or under the Tenant or if the
         insurance monies received under any such policy shall as a result of
         any act statement default or omission of the Tenant or any agent
         servant licensee or invitee of the Tenant or any person holding through
         or under the Tenant be insufficient to make good any damage to or
         destruction of the demised premises or any part thereof the Tenant
         shall make up such deficiency out of its own money

                                       (9)

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(14)     At the Tenant's cost to comply in all respects with and do anything
         required under all Acts of Parliament both present and future so far as
         they may in any respect affect the demised premises or the use thereof
         or the employment or residence therein of any person or the use of any
         plant machinery fixtures or chattels therein and to execute any works
         and do anything required to be executed or done (whether by the
         Landlord or the Tenant) thereunder by any competent person and to
         indemnify the Landlord against all liability and expense whatsoever
         arising out of or in connection with such enactment or of or incidental
         to the execution of such works or things

(15)     Not at any time during the said term to do or permit to be done on or
         about the demised premises or any land or premises of the Landlord
         which is not comprised in the demised premises any act or thing by
         reason of which the Landlord may under any enactment incur or have
         imposed upon him or become liable to pay any penalty damages
         compensation fees costs charges or expenses

(16)     In connection with the Defective Premises Act 1972 or any legislation
         modifying amending or replacing the same to:-

         (A)    Notify the Landlord immediately in writing of any defect in the
                demised premises

         (B)    Indemnify the Landlord against any claims proceedings demands
                and the costs and expenses incurred thereby by reason of the
                Tenant's failure to give such notice

(17)     Upon receipt of any notice order direction or other thing from a
         competent Authority affecting or likely to affect the demised premises
         whether the same shall be served directly upon the Tenant or whether
         the original or a copy thereof shall be received from any underlessee
         or other person whatsoever as soon as possible to deliver a copy
         thereof to the Landlord and at the

                                      (10)

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         cost of the Tenant to join with the Landlord in taking such steps in
         relation thereto and complying therewith or raising such objections
         thereto at the joint cost of the parties as the Landlord shall from
         time to time reasonably think fit

(18)(A)  In this subclause the following expressions bear the following meanings
         namely:

         "the Planning Acts" mean the Town & Country Planning Acts 1962 to 1972
         or any statutory modification or re-enactment thereof for the time
         being in force and any regulations or orders made or having effect
         thereunder

         "Planning Permissions" mean any permission consent or approval given or
         deemed to be given under the Planning Acts and "development" bears the
         same meaning as in the Planning Acts

   (B)   At all times during the said term to comply in all respects with the
         provisions and requirements of the Planning Acts and of all Planning
         Permissions so far as the same respectively relate to or affect the
         demised premises or any part thereof or any operations works acts or
         things already or hereafter to be carried out executed done or
         committed thereon or the use thereof for any purpose

   (C)   During the said term so often as the occasion shall require at the
         expense in all respects of the Tenant to obtain all such Planning
         Permissions and serve all such notices as may be required for the
         carrying out of any operations on the demised premises or in the
         institution or continuance thereof of any use thereof which may
         constitute development but so that:

         (i)    No application for Planning Permission shall be made without the
                previous written consent of the Landlord (such consent not to be
                unreasonably withheld)

                                      (11)

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         (ii)   The Tenant shall within seven days after the service by the
                Tenant of any Notice under the Planning Acts deliver a copy
                thereof to the Landlord

   (D)   Subject only to any statutory direction to the contrary to pay and
         satisfy any charge or levy that may hereafter be imposed under the
         Planning Acts in respect of the carrying out or maintenance of any such
         operation or the institution or continuance of any such use as
         aforesaid

   (E)   Notwithstanding any consents which may be granted by the Landlord under
         these presents not to carry out or make any alteration or addition to
         the demised premises or any change of use thereof (being an alteration
         or addition or change of use which is prohibited by or for which the
         consent of the Landlord is required to be obtained under these presents
         and for which a Planning Permission needs to be obtained) before all
         necessary notices under the Planning Acts in respect thereof have been
         served or before all such notices and all such necessary Planning
         Permissions have been produced to the Landlord and in the case of a
         Planning Permission acknowledged by it in writing as satisfactory to it
         but so that the Landlord may refuse so to express its satisfaction with
         any such Planning Permission on the grounds that any condition
         contained therein or anything omitted therefrom or the period thereof
         might in the reasonable opinion of the Landlord or its Surveyor be
         prejudicial to its interest in the demised premises whether during the
         said term or following the determination or expiration thereof

   (F)   Unless the Landlord shall otherwise direct to carry out and complete
         before the expiration or sooner determination of the said term:

                                      (12)

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         (i)    Any works stipulated to be carried out to the demised premises
                by a date subsequent to such expiration or sooner determination
                as a condition of any Planning Permission granted for any
                development begun before such expiration or sooner determination
                and

         (ii)   Any development begun upon the demised premises in respect of
                which the Landlord shall or may be or become liable for any
                charge or levy under the Planning Acts

   (G)   If and when called upon so to do to produce to the Landlord or its
         Surveyor all such plans and documents and other evidence as the
         Landlord may reasonably require in order to satisfy itself that the
         provisions of this covenant have been complied with in all respects

(19)(A)  To comply with all requirements of the appropriate Authority in
         relation to means of escape from the demised premises in case of fire
         and to indemnify the Landlord against all actions proceedings costs
         claims expenses damages losses and demands howsoever occasioned to the
         Landlord in respect of such matters and to comply with the requirements
         of the Landlord's Insurers

    (B)  To keep installed in compliance with legal requirements fire fighting
         and extinguishing apparatus open to the inspection of the Landlord and
         not to obstruct or permit or suffer to be obstructed the access to or
         means of working the same

(20)     Not to give any acknowledgement that the Tenant enjoys the access of
         light or air to any windows or openings of the demised premises by the
         consent of any third party nor to pay any money or give any other
         consideration to any third party nor to enter into any agreement with
         any third party for the purpose of inducing or binding any third party
         to abstain from obstructing the access of light or air to any windows
         or openings and that no

                                      (13)

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         window or light belonging to the demised premises shall be stopped-up
         darkened or obstructed and that no new window light opening doorway
         path passage drain or other encroachment or easement shall be made or
         acquired on or against or affecting the demised premises and if any
         such matters as aforesaid shall be made or acquired or attempted to be
         made or acquired to give immediate notice thereof to the Landlord and
         at the Landlord's reasonable request at the joint cost of the Landlord
         and the Tenant to adopt such means and take such proceedings as may
         reasonably be required for preventing any such encroachment or the
         acquisition of any such easement

(21)(A)  To permit the Landlord and its Agent and all others authorised by it
         (including any mortgagee or prospective mortgagee or purchaser of any
         reversionary interest during the term) with or without workmen and
         others at all reasonable times during normal business hours during the
         term by prior appointment with the Tenant (save in emergency) to enter
         upon the demised premises for any lawful purpose and in particular in
         order to inspect and measure the same and ascertain how the same is
         being used and occupied and to estimate the value thereof for insurance
         and mortgage or other purposes and to view the state and condition
         thereof and to take inventories of the Landlord's fixtures and fittings
         therein and to prepare schedules of any dilapidations

    (B)  To permit the Landlord and its Agent and all others authorised by it
         with or without workmen and others and appliances at all reasonable
         times during normal business hours during the term by prior appointment
         with the Tenant (except in case of emergency) to enter the demised
         premises for the purpose of repairing and maintaining cleansing or
         executing alterations to or upon such neighbouring or adjoining
         premises of the Landlord or any part

                                      (14)

<PAGE>

         thereof or the services therein or for the purpose of erecting new
         buildings or structures of any kind thereon or for the purpose of
         executing and doing any such repairs and other works in or about the
         demised premises the person exercising such right making good as soon
         as possible all damage thereby occasioned to the demised premises

    (C)  To permit the Landlord and its Agents and all others authorised by it
         with or without workmen and appliances to enter during normal business
         hours by prior appointment with the Tenant (save in case of emergency)
         on the demised premises and to carry out such works thereon and thereat
         in order to prevent a forfeiture of any Superior Lease for the time
         being affecting the demised premises or any part thereof and to
         exercise any rights hereby excepted and reserved and in the event of
         any of the works carried out by the Landlord pursuant to this clause
         being the responsibility of the Tenant hereunder the Tenant will on
         demand repay to the Landlord any monies expended in the carrying out of
         such works together with interest thereon at the rate hereinafter
         specified

    (D)  To permit the Landlord and its Agent and all those authorised by it by
         prior appointment with the Tenant at any time within six months before
         the expiration or sooner determination of the term and at any time
         during the term by prior appointment with the Tenant in the event of
         the Landlord wishing to dispose of its interest in the demised premises
         to enter the demised premises and affix to any suitable part thereof
         noticeboards or bills for re-letting or disposing of the same PROVIDED
         the said noticeboards or bills also indicate that the Tenant's business
         is not affected thereby and PROVIDED FURTHER that they do not
         materially adversely affect the Tenant's enjoyment of light and

                                      (15)

<PAGE>

         air and not to remove or obscure the same and to permit all persons by
         order in writing of the Landlord or its Agent to view the demised
         premises by prior appointment with the Tenant

(22)     That no alteration or addition shall be made to the electrical
         installation of the demised premises save in accordance with the terms
         and conditions laid down by the Institution of Electrical Engineers and
         the regulations of the Electricity Supply Authorities

(23)     That no additional building or erection shall be placed or erected on
         any part of the demised premises. That no alteration improvement or
         addition structural or otherwise shall be made in or to the demised
         premises and not to cut maim divide or remove any part of the demised
         premises and not to merge the demised premises with any adjoining
         premises and forthwith on notice being given by the Landlord in that
         behalf to remove any alterations or additions or other such things
         and/or to reinstate the demised premises to their former state and
         condition PROVIDED THAT if the Tenant shall first enter into such
         covenants with the Landlord as the Landlord may reasonably require with
         regard to the execution of any such works being only internal works of
         a non-structural nature or the erection and removal of internal
         demountable partitions and the reinstatement of the demised premises at
         the end or sooner determination of the term (however the same may be
         determined) then subject to the previous consent in writing of the
         Landlord such consent not to be unreasonably withheld in accordance
         with drawings and specifications previously submitted to and approved
         in writing by the Landlord or its Surveyor such approvals not to be
         unreasonably withheld the Tenant may carry out such works as aforesaid

                                      (16)

<PAGE>

(24)     That no aerial pole mast sign fascia placard bill notice or other
         notification whatsoever shall be placed or affixed on or to the outside
         of the demised premises or on the inside so as to be visible from the
         outside unless the prior written consent of the Landlord such consent
         not to be unreasonably withheld shall first have been obtained and on
         the expiration or sooner determination of the term on being requested
         by the Landlord to remove such matters as aforesaid and to make good
         any damage caused thereby to the reasonable satisfaction of the
         Landlord's Surveyor

(25)     Nothing shall be done brought permitted or kept on the demised premises
         of a dangerous inflammable noxious or offensive nature or the keeping
         or allowing of which may at Law constitute a nuisance or require the
         licence or consent of any local or other competent Authority or which
         may be or become a nuisance damage annoyance or inconvenience to any
         person or which may in the Landlord's reasonable opinion be injurious
         to the value tone amenity or character of the demised premises and that
         no dust fumes smell vibration or noise will be created which would be a
         nuisance or annoyance to or injurious to local amenity or to any
         adjoining or adjacent premises or buildings and not to keep any bird
         animal or reptile on the demised premises and not to allow any clothing
         washing or other like articles to be displayed exposed or placed in on
         or outside the doors windows or other parts of the demised premises or
         on any flat roof and that no drugs shall at any time unlawfully be on
         the demised premises and not to allow trade empties or litter or
         rubbish of any description to accumulate on or outside the demised
         premises but to place all refuse and rubbish in proper receptacles
         therefor and not to obstruct the common areas

                                      (17)

<PAGE>

(26)     Not to suspend any excessive weight from the roofs or ceilings of the
         demised premises and the floors of the demised premises shall not be
         overloaded and that nothing shall be done or brought upon the demised
         premises which may in the Landlord's opinion cause or be likely to
         cause damage or strain to the floors ceilings or structure of the
         demised premises and (without prejudice to the generality of the
         foregoing) that no machinery shall be installed or kept on the demised
         premises save that relating to the Tenant's business

(27)     That the demised premises shall not be used for any illegal or immoral
         purpose or for any noisy noisome or offensive trade or business nor to
         hold any sale by auction or public meetings or public entertainments
         (save for public exhibitions) at the demised premises nor to do
         anything which may become a nuisance annoyance disturbance
         inconvenience or damage to the Landlord or the owners tenants and
         occupiers of adjoining and neighbouring properties nor to allow anyone
         to sleep at the demised premises but to use the demised premises as a
         commercial picture library to incorporate the storage collation
         preservation restoration and reproduction of photographs together with
         ancillary offices in relation thereto or for any purpose within Class
         B.8. of the Town and Country Planning (Use Classes) Order 1987 together
         with ancillary offices in relation thereto or for such other purpose
         for which the Landlord's prior written consent shall first have been
         obtained such consent not to be unreasonably withheld PROVIDED ALWAYS
         and it is hereby agreed and declared that there is not and shall not be
         implied herein any representation or any warranty or other obligation
         on the part of the Landlord that such is the permitted use for the
         purpose of the Planning Acts or otherwise and that no consent which the
         Landlord may hereafter give to any change of use shall be or be taken
         to imply any such

                                      (18)

<PAGE>

         representation or warranty or other obligation and notwithstanding that
         any use operation or thing which may be carried on from or situate upon
         the demised premises may now or at any time hereafter not be permitted
         under the Planning Acts or otherwise the Tenant shall remain fully
         bound and liable to the Landlord under these presents without
         compensation or relief of any kind

(28)     Without prejudice to the generality of the foregoing the Tenant will
         contribute on demand a fair proportion of the costs incurred by the
         Landlord (such proportion to be conclusively determined in all matters
         of fact by the Landlord's Surveyor) of the cost of supplying the
         demised premises with lighting heating gas electricity and other
         services where the same are not supplied direct to the Tenant by the
         various statutory or other suppliers at the sole cost of the Tenant

(29)(A)  Not to assign part only of the demised premises

    (B)  Not to assign the whole or underlet or agree to underlet share or part
         with the possession or occupation or grant any licence of the whole or
         part of the demised premises PROVIDED THAT while the Lease is vested in
         the Hulton Picture Company Limited or in the event of a permitted
         assignment to Hulton Pictures Limited the said Hulton Picture Company
         Limited or Hulton Pictures Limited (as the case may be) may share
         occupation of the demised premises with City Centre Cable Limited or
         Hulton Picture Company Limited or Hulton Pictures Limited and/or with
         any associated company of City Centre Cable Limited or Hulton Picture
         Company Limited or Hulton Pictures Limited within the meaning of
         Section 416 of the Income and Corporation Taxes Act 1988 and/or any
         holding or subsidiary companies of the said Companies within the
         meaning of Section 736 of the Companies Act 1985 PROVIDED THAT no
         Landlord and Tenant relationship is thereby created and so that the
         said City Centre Cable Limited or Hulton Picture Company

                                      (19)

<PAGE>

         Limited or Hulton Pictures Limited or the said associated holding or
         subsidiary companies shall not acquire security of tenure whether under
         the Landlord and Tenant Act 1954 (as amended) or otherwise and PROVIDED
         FURTHER that such sharing of occupation shall cease on the said Hulton
         Picture Company Limited ceasing to be the Tenant hereunder or in the
         event of a permitted assignment to Hulton Pictures Limited of the said
         Hulton Pictures Limited ceasing to be the tenant hereunder PROVIDED
         FURTHER that if the Tenant shall at any time during the term desire to
         assign the whole or underlet the whole of the demised premises or
         underlet either that part of the demised premises which is edged in
         orange on the plan annexed hereto as a whole or that part of the
         demised premises which is edged in blue on the said plan as a whole
         ("the Permitted Part") (but so that at no time shall there be more than
         one Underlease of the demised premises) and shall on each occasion
         procure:

         (i)    that any intended assignee shall covenant direct with the
                Landlord to pay the rent reserved by and to observe and perform
                the covenants and conditions contained in these presents and if
                the intended assignee shall be a limited liability company then
                not less than two (but not more than four) of the Directors of
                the same shall if the Landlord reasonably so requires act as
                sureties for such company and shall (inter alia) JOINTLY AND
                SEVERALLY enter into covenants with the Landlord which are
                substantially in the form of the covenants on the part of the
                Guarantor hereinafter contained

         (ii)   that any intended underlessee shall covenant direct with the
                Landlord as from the date of the underlease to observe and
                perform the covenants and conditions herein contained (excluding
                only the covenant to pay the rents hereinbefore reserved)

         (iii)  that any intended underlease of a Permitted Part shall be for a
                term not exceeding five years and shall be the subject of an
                Order under Section 38(4) of the Landlord and Tenant Act 1954
                that the provisions of Sections 24 to

                                      (20)

<PAGE>

                28 (inclusive) of the Landlord and Tenant Act 1954 are thereby
                excluded

         (iv)   that any intended assignee shall covenant direct with the
                Landlord not to assign part only of the demised premises or to
                assign the whole or underlet or agree to underlet share or part
                with the possession or occupation or grant any licence of the
                demised premises or any part thereof except in accordance with
                the provisions of these presents nor without the previous
                consent in writing of the Landlord as well as of the Tenant and
                to pay all reasonable Solicitors' and Surveyors' fees and other
                costs properly incurred by the Landlord as well as by the Tenant
                in connection with any application for such consent and

         (v)    that no interest (howsoever remote) derived out of the term
                hereby granted shall be created in respect of the whole or any
                part of the demised premises upon payment of a fine or premium
                or at a rent of less than the full market value which in any
                event in the case of a subletting of the whole of the demised
                premises shall not be less than the rent for the time being
                payable under these presents and in the case of a subletting of
                the Permitted Part shall be an appropriate proportion thereof
                related to floor area

         (vi)   that the rent under any permitted underlease shall be reviewed
                on such dates as may accord with current market practice and in
                any event upon such dates and upon such terms and upon the basis
                of such assumptions as those upon which the rent payable under
                these presents falls to be reviewed as provided herein and to
                the intent that the rent payable on and after any review date
                until any

                                      (21)

<PAGE>

                subsequent review date shall not be less than the highest open
                market rent obtainable without taking a fine or premium and
                shall in no case be less than the rent payable immediately prior
                to such review or in the case of an underlease of the whole of
                the demised premises less than the rent payable for the time
                being hereunder or in the case of an underlease of the Permitted
                Part less than the appropriate proportion of the rent payable
                for the time being hereunder which shall be calculated in
                accordance with the proportion which the floor area of the
                Permitted Part bears to the floor area of the whole of the
                demised premises

         (vii)  that any permitted underlease contains covenants rights and
                conditions substantially in accordance to those contained in
                these presents

         (viii) that in any such assignment or underlease the assignee or
                underlessee (as the case may be) shall covenant to produce for
                registration at the office of the Landlord or as the Landlord
                may from time to time direct every assignment or underlease as
                hereinafter mentioned and to pay the registration fees in
                respect thereof as hereinafter provided

         Then the Tenant shall be permitted to assign the whole of the demised
         premises or underlet the whole or the Permitted Part of the demised
         premises as hereinbefore specified with the prior written consent of
         the Landlord which will not be unreasonably withheld

(30)     Upon making application for any written consent or approval which is
         required under the terms of these presents to disclose to the Landlord
         such information as the Landlord may reasonably and properly require in
         relation thereto

                                      (22)

<PAGE>

(31)     Not to permit any breach by any permitted underlessee of the terms and
         conditions contained in any permitted underlease and at all times
         strictly to enforce the same

(32)     Within one month after any assignment mortgage charge underlease
         assignment of underlease surrender or other disposition or devolution
         of any interest in the demised premises to give notice thereof and
         produce the relevant document or a certified copy thereof to the
         Solicitors for the Landlord and to pay them a fee of Ten Pounds
         ((pound)10.00) or such other sum as may be reasonable at the time of
         such registration for the registration thereof

(33)     To pay to the Landlord on demand all reasonable costs charges and
         expenses (including Solicitors' costs and Surveyors' fees) properly
         incurred by the Landlord incidental to the preparation and service of a
         notice and the taking of proceedings under Section 146 and Section 147
         of the Law of Property Act 1925 and the Leasehold Property (Repairs)
         Act 1938 (notwithstanding that forfeiture is avoided otherwise than by
         relief granted by the Court) and in connection with every consent
         applied for under these presents and in connection with the preparation
         and service of a Schedule of Dilapidations whether during or after the
         determination or the term and in connection with any proceedings
         instituted against the Tenant by the Landlord consequent upon the
         breach by the Tenant of any covenant or condition contained in these
         presents

(34)     To pay any Value Added Tax lawfully imposed upon any rent fee charge
         cost or expense for which the Tenant may be liable under these presents

(35)     To pay interest to be calculated from day to day at the rate of Four
         per cent per annum above National Westminster Bank P.L.C. Base Rate
         then prevailing upon all rent or other payments due to

                                      (23)

<PAGE>

         the Landlord under the provisions of these presents which are unpaid
         and in arrear for fourteen days with effect from the due date for
         payment until the date of actual payment

(36)     To indemnify the Landlord against any claims proceedings or demands and
         costs and expenses incurred thereby which may be brought against the
         Landlord by any servants work-people agents or visitors or licensees of
         the Tenant in respect of any accident loss or damage whatsoever to
         person or property howsoever caused or occurring in or upon the demised
         premises

(37)     To pay the Landlord's Solicitors' proper legal costs and disbursements
         and Value Added Tax thereon in connection with the grant of these
         presents together with the Stamp Duty on the Lease and Counterpart

(38)     To indemnify the Landlord in respect of any liability incurred by the
         Landlord arising out of any alterations or works carried out to the
         demised premises or in respect of any interference with any rights
         easements privileges or services enjoyed by any neighbouring or
         adjoining premises

(39)     Not to discharge or permit the discharge of any corrosive effluent or
         other substances into the drains serving the demised premises and other
         premises which are in any way harmful thereto

(40)     In the event of the Tenant vacating the demised premises at the
         expiration of the term whether by effluxion of time or otherwise then
         if the Tenant shall fail to remove any property belonging to it or its
         servants or licensees at such expiration then the Tenant hereby
         irrevocably appoints the Landlord as its agent for the purpose of
         removing and selling such property and after deducting all costs and
         expenses thereby incurred the Landlord shall hold the residue of such
         proceeds to the order of the Tenant but so that the Tenant shall
         indemnify the Landlord

                                      (24)

<PAGE>

         against any claim by a third party whose property shall have been sold
         or removed by the Landlord in good faith

(41)     If neither the Tenant nor any person claiming through or under the
         Tenant shall have been in occupation of the demised premises during the
         whole of the period immediately preceding the expiration or sooner
         determination of the term to indemnify the Landlord against any rates
         payable by the Landlord after the expiration or sooner determination of
         the term through the Landlord's inability to claim void rate relief for
         the maximum period which would have been allowed had the demised
         premises been occupied up to the date of expiration or sooner
         determination of the term

4.       THE Landlord HEREBY COVENANTS with the Tenant:

(1)      That the Tenant paying the rent hereby reserved and performing and
         observing the covenants on the part of the Tenant hereinbefore
         contained shall and may peaceably and quietly hold and enjoy the
         demised premises for the term or until its determination as hereinafter
         provided without any interruption by the Landlord or any person
         lawfully claiming under or in trust for the Landlord

(2)(A)   (Save to the extent that such insurance shall become void or payment of
         the insurance monies shall be refused in whole or in part as a result
         of any statement act or default or omission by or on behalf of the
         Tenant or any sub-tenant or their respective servants agents or
         licensees or any person under the control of the Tenant or any
         sub-tenant) to keep the demised premises (including if the Landlord
         shall deem it expedient boilers and hot water central heating apparatus
         lifts and other plant and machinery therein and also the plate glass if
         the Tenant shall

                                      (25)

<PAGE>

         fail to comply with its obligations in relation to the insurance
         thereof as hereinbefore specified) insured in such office in such name
         against fire explosion aircraft riot civil commotion and malicious
         persons and such other risks as the Landlord shall in its sole
         discretion deem expedient so far as the demised premises are concerned
         upon a full reinstatement basis to include the costs of demolition and
         site clearance consequent upon rebuilding or reinstatement and of
         Architects' Surveyors' and other professional fees at the usual scales
         current for the time being and any Value Added Tax which may be payable
         in such sum as the Landlord shall reasonably consider to be appropriate
         (the Tenant to be at liberty at any time to express in writing to the
         Landlord his opinion as to the amount of such sum which the Landlord
         shall be bound to consider) and in respect of loss of rent for three
         years and (if applicable) Value Added Tax on such loss of rent (and so
         that any insurance in respect of loss of rent shall if the Landlord so
         requires be calculated in respect of the period after any date upon
         which the rent payable hereunder falls to be reviewed on the basis of
         the rent which in the reasonable opinion of the Landlord will be likely
         to be payable hereunder after such review) but so that all and any
         insurance effected by the Landlord hereunder shall be subject to the
         conditions and limitations imposed by the insurance company with whom
         such insurance is effected

   (B)   Save as aforesaid to lay out any monies received under such insurance
         in rebuilding and reinstating the demised premises or such part thereof
         as shall be destroyed or damaged (save any monies in respect of loss of
         rent or liability to third parties or loss or damage to adjoining or
         neighbouring premises which shall be paid to the Landlord for its own
         use and benefit) (and

                                      (26)

<PAGE>

         subject always to the Landlord being able to obtain all such approvals
         consents licences permissions and permits and all such materials and
         labour as may be necessary for such rebuilding and reinstatement as to
         the obtaining of which the Landlord shall use all reasonable
         endeavours)

   (C)   If required by the Tenant (but not more often than once in any year) to
         produce to the Tenant a copy of the policy of such insurance and of the
         last premium receipt

5.       PROVIDED ALWAYS and it is hereby agreed and declared and where
appropriate the Tenant COVENANTS with the Landlord:

(1)      That if the rents or any part thereof shall be unpaid for fourteen days
         after becoming due (whether lawfully demanded or not) or if there shall
         be any breach non-observance or non-performance of any of the Tenant's
         covenants herein contained or if the Tenant (not being a company) shall
         become insolvent or bankrupt or have a Receiving Order made against him
         or enter into any arrangement or composition for the benefit of
         creditors or permit any execution to be levied on the demised premises
         or (being a company) shall enter into liquidation (whether compulsory
         or voluntary save for the purposes of amalgamation or reconstruction
         without insolvency) or if a Receiver shall be appointed then and in
         each and every such case it shall be lawful for the Landlord at any
         time thereafter to enter upon the demised premises or any part thereof
         in the name of the whole and thereupon this demise shall absolutely
         determine but without prejudice to any right or right of action or
         remedy of the Landlord in respect of any antecedent breach of any of
         the covenants by the Tenant in these presents contained and the
         Landlord may thenceforth peaceably hold and enjoy the same

                                      (27)

<PAGE>

(2)      Nothing herein contained shall by implication of Law or otherwise
         confer on the Tenant any easement right privilege licence or advantage
         save as herein expressly provided over the demised premises or any
         adjoining or other property now or hereafter belonging to the Landlord
         and further the Landlord and any person through whom the Landlord
         derives title shall be entitled to alter build rebuild or redevelop use
         or otherwise deal with any such property notwithstanding that light or
         air or any rights of the demised premises be thereby diminished or
         otherwise prejudicially affected and notwithstanding any interference
         or inconvenience thereby caused to the Tenant PROVIDED THAT the minimum
         of inconvenience shall be caused to the Tenant and so that any damage
         thereby caused to the demised premises will be made good as quickly as
         possible to the Tenant's reasonable satisfaction

(3)      The Landlord shall not be liable to the Tenant or any other person for
         any accident loss or damage suffered by the Tenant or any other person
         or to the demised premises or to any goods or property of the Tenant or
         any other person by reason of any act or omission whether negligent or
         otherwise of any servant contractor agent or lessee of the Landlord or
         any other person or by reason of any breakdown bursting stoppage
         leakage breakage defect of or damage to any boiler pipe appliance wires
         apparatus lift plant or machinery situate in the demised premises
         whether or not used for the purpose of the demised premises

(4)      If the demised premises shall be so destroyed or damaged by any of the
         insured risks so as to be unfit for occupation and use and provided
         that the insurance of the demised premises shall not have become void
         or voidable in whole or in part and shall not have been reduced as a
         result of any act or omission of the

                                      (28)

<PAGE>

         Tenant or any servant agent or licensee of the Tenant the first rent
         payable hereunder or a due proportion according to the nature and
         extent of the damage sustained shall forthwith cease to be payable
         either until the demised premises shall be rebuilt or reinstated so as
         to be fit for occupation and use or until the expiry of the period of
         three years from the date of damage or destruction whichever shall be
         the earlier and any dispute regarding the said cesser of rent shall be
         referred to the award of a single Arbitrator to be appointed in manner
         set out in sub-clause (6) below

(5)      If the rebuilding repairing and reinstating of the demised premises in
         the event of its damage or destruction by reason of the occurrence of
         an insured risk shall be prevented or frustrated (whether as to the
         whole or as to part) (or whether because any competent Authority shall
         lawfully refuse permission for or otherwise prevent such rebuilding or
         reinstatement or for any other reason) all such insurance monies
         relating to the rebuilding repairing or reinstatement which is so
         prevented or frustrated or which otherwise does not take place
         (including insurance monies relating to loss of rent in respect of any
         portion of the demised premises to which such reinstatement or
         rebuilding relates) shall belong to and shall be retained by the
         Landlord for its sole use and benefit and in the event of any such
         monies being received by the Tenant the same shall forthwith be paid by
         the Tenant to the Landlord

(6)      Any reference to arbitration made pursuant to the provisions of these
         presents (save as may otherwise appear) shall be to the award of a
         single Arbitrator to be agreed between the Landlord and the Tenant or
         failing such agreement within twenty-eight days of arbitration being
         first demanded to an Arbitrator to be

                                      (29)

<PAGE>

         appointed by the President of the Royal Institution of Chartered
         Surveyors and in either case in accordance with the provisions of the
         Arbitration Acts 1950 to 1979 or any statutory modification or
         re-enactment thereof for the time being in force

(7)      Upon quitting the demised premises the Tenant shall not be entitled to
         any compensation whatsoever whether under the provisions of any
         legislation enacted before or after the date hereof or otherwise
         PROVIDED THAT this Clause shall apply only if and insofar as it is
         lawful to make such agreement and shall not extend to any claim against
         the Landlord under any covenant on the part of the Landlord herein
         contained

(8)      Any notice served under or in connection with these presents shall be
         properly served if it complies with the provisions either of Section
         196 of the Law of Property Act 1925 or of Section 23 of the Landlord &
         Tenant Act 1927 as amended by the Recorded Delivery (Service) Act 1962

(9)      Nothing herein contained shall confer on the Tenant any right to the
         benefit of or to enforce any covenant or agreement contained in any
         Lease or other instrument relating to any other premises belonging to
         the Landlord or limit or affect the right of the Landlord to deal with
         the same now or at any time hereafter in any manner which may be
         thought fit

(10)     No demand for or acceptance of rent by the Landlord or its Agents with
         knowledge of a breach of any of the covenants on the part of the Tenant
         contained in these presents shall be or be deemed to be a waiver wholly
         or partially of any such breach but such breach shall be deemed to be a
         continuing breach of covenant and the Tenant and any person taking
         estate or interest under or through the Tenant shall not be entitled to
         set up any such demand for or acceptance of rent by the Landlord or its
         Agent as a defence in any action for forfeiture or otherwise

                                      (30)

<PAGE>

(11)     If any insurance policy maintained by the Landlord in respect of the
         demised premises provides for any part of a claim made thereunder (such
         part being herein called "the excess") to be borne by the insured
         notwithstanding that the policy has not been invalidated in whole or
         part and if the Landlord makes any claim under such policy as aforesaid
         in respect of any occurrence or loss relating to the demised premises
         then the Tenant shall reimburse to the Landlord on demand all or any
         payments made by the Landlord by way of the excess attributable to such
         claim

(12)     Without prejudice to any other remedy of the Landlord with regard
         thereto all rents and other sums which shall or may become due from the
         Tenant under the terms of these presents shall in default of payment be
         recoverable either as rent in arrear or by action as the Landlord may
         decide

6.       PROVIDED ALWAYS and it is hereby further agreed that:

(A)      At the expiration of the fourth year and each period of four years
         thereafter of the term (the time being computed from the date of the
         commencement of the term) (the date of expiration of such period as
         aforesaid being hereinafter referred to as "the date of review") the
         yearly rent first hereinbefore reserved shall be increased to an amount
         (hereinafter called "the revised rent") which shall represent the open
         market rental value of the demised premises at the date of review and
         the revised rent shall (subject to sub-clause (E) below) be the rent
         that is due and payable as from the date of review whenever the same
         shall be agreed or determined

(B)      The open market rental value of the demised premises at the date of
         review shall be that sum which may be agreed between the Landlord and
         the Tenant or determined in accordance with

                                      (31)

<PAGE>

         sub-clause (C) of this Clause as being the highest rent at which the
         demised premises might be let in the open market with vacant possession
         without payment of a fine or premium by a willing Lessor to a willing
         Lessee for a tenancy of the residue unexpired of the term of these
         presents or a period of twelve years (whichever is the longer) upon the
         supposition (if not a fact) that the Landlord and the Tenant have
         severally complied with all their obligations under these presents and
         that the demised premises are fit for immediate use and occupation and
         that the demised premises can lawfully be used for the purposes
         permitted by these presents and that no reduction is to be made to take
         account of any rental concession which on a new letting with vacant
         possession might be granted to the incoming tenant either for a period
         within which its fitting out works would take place or for any other
         reason whatsoever and taking no account of:

         (i)    any goodwill attributable to the demised premises by reason of
                any trade or business carried on therein by the Tenant or any
                undertenant and

         (ii)   any effect of any improvements to the demised premises (to which
                the Landlord shall have given written consent) carried out by
                the Tenant or any undertenant during the term wholly at their
                expense and otherwise than in pursuance of an obligation to the
                Landlord

         (iii)  any effect on the rent of the fact that the Tenant or any
                undertenant are or have been in occupation of the demised
                premises and

                                      (32)

<PAGE>

         (iv)   any condition or restriction contained in or referred to in a
                planning permission granted to the Tenant or any permitted
                subtenant or imposed by any local or statutory Authorities
                relating to the demised premises and

         (v)    any effect on the rent of the fact that the whole or any part of
                the demised premises or the access thereto may have been
                destroyed or damaged and

         (vi)   any work that has been carried out which has diminished the
                rental value of the demised premises

         (vii)  Any restraint or restriction on the right to recover or increase
                rent imposed by or by virtue of any Act of Parliament

         and in all other respects on the terms and conditions of these presents
         excepting the amount of rent firstly reserved but including these
         provisions for review of the rent firstly reserved

(C)      If the Landlord and the Tenant shall be unable to agree on the amount
         of the open market rental value as aforesaid then the same shall be
         decided by a Surveyor who shall act and be deemed to act as an
         arbitrator in accordance with the Arbitration Acts 1950 to 1979 to be
         agreed upon by the parties hereto or in the event of failure so to
         agree then the same shall be decided by a Surveyor specialising or
         experienced in dealing with commercial rents in Central London to be
         nominated at the request of the Landlord or the Tenant by the President
         for the time being of the Royal Institution of Chartered Surveyors and
         the decision of such Surveyor shall be binding on both the Landlord and
         the Tenant and the fees payable to the President and any such Surveyor
         shall be borne and be paid by the parties hereto in such shares and in
         such manner as such Surveyor shall determine and failing any such
         decision and subject thereto in equal shares

                                      (33)

<PAGE>

(D)      If the surveyor who shall be appointed pursuant to sub-clause (C)
         hereof shall die delay or become unwilling unfit or incapable of acting
         or if for any reason the President for the time being of the Royal
         Institution of Chartered Surveyors or the person acting on his behalf
         shall in his absolute discretion think fit he may on the application of
         either the Landlord or the Tenant by writing discharge the surveyor and
         appoint another in his place

(E)      Notwithstanding the decision of the surveyor hereinbefore referred to
         in no event shall the rent payable by the Tenant after the date of
         review be less than the highest rent payable by the Tenant during the
         period since the last date of review or in the event of the first date
         of review since the date of the commencment of the term (whichever
         shall be appropriate) excluding any abatement or reduction in the said
         rent or any restriction on the amount payable whether by statute or
         otherwise

(F)      In the event that by the date of review the amount of the revised rent
         has not been agreed between the parties hereto or determined as
         aforesaid then in respect of the period of time (hereinafter called
         "the said interval") beginning with the date of review and ending on
         the Quarter Day immediately following the date upon which the amount of
         the revised rent is agreed or determined as aforesaid the Tenant shall
         pay to the Landlord in manner hereinbefore provided rent at the yearly
         rate payable immediately before the date of review and at the
         expiration of the said interval there shall be due as a debt payable by
         the Tenant to the Landlord on demand as arrears of rent an amount equal
         to the difference between the revised rent and the rent actually paid
         during the said interval and apportioned on a daily basis in respect of
         the said interval with interest thereon calculated at the rate of
         National Westminster Bank P.L.C. Base Rate in force at the commencement
         of the said interval

                                      (34)

<PAGE>

(G)      If at the date of review the Landlord shall be obliged legally or
         otherwise to comply with any Act of Parliament dealing with the control
         of rent and which shall restrict or modify the Landlord's right to
         revise the rent in accordance with the terms of these presents or which
         shall restrict the right of the Landlord to demand or accept payment of
         the full amount of the rent for the time being payable under these
         presents then the Landlord (insofar as it is lawfully able so to do)
         shall nevertheless be entitled to require the rent to be reviewed in
         accordance with the terms of these presents and shall on each occasion
         that any such enactment is removed relaxed or modified be entitled
         (insofar as it is lawfully able so to do) to recover the whole of the
         increased rent or any part thereof with effect from the last date of
         review and without prejudice to the generality of the foregoing if the
         Landlord is prevented by Law from recovering the whole or any part of
         any such rent or if it shall otherwise so require it shall be entitled
         on giving not less than three months' notice in writing to the Tenant
         expiring after the date of each such removal relaxation or modification
         to introduce an intermediate review date (hereinafter called "the
         intermediate review date") which shall be the date of expiration of
         such notice and the rent payable hereunder from an intermediate review
         date to the next succeeding date of review or intermediate review date
         (whichever shall first occur) shall be determined in like manner as the
         rent payable from the date of review as hereinbefore provided

(H)      As soon as the amount of rent payable after a date of review has been
         agreed or ascertained in accordance with the terms hereof and if
         required by the Landlord so to do) the parties hereto will (each party
         bearing their own costs) forthwith endorse a

                                      (35)

<PAGE>

         memorandum thereof on the Lease and the Counterpart thereof specifying
         the amount of the revised rent

7.       IN the event of the Base Rate of National Westminster Bank Plc (in this
Clause called "Base Rate") being abolished then any references in these presents
to Base Rate shall have effect as if there had been substituted from time to
time for Base Rate such rate of interest as is most closely comparable with Base
Rate such rate of interest to be agreed between the Landlord and the Tenant (or
in case of failure to agree) determined by arbitration in accordance with Clause
5(6) but for the purpose of this Clause Clause 5(6) shall be read as though for
"The Royal Institution of Chartered Surveyors" there were substituted "The
Institute of Chartered Accountants for England and Wales"

8(1)     THE Guarantor HEREBY COVENANTS with the Landlord that the Tenant will
         at all times during the term granted by these presents pay the rent
         hereby reserved on the day and in the manner aforesaid and will observe
         and perform the covenants and conditions contained in these presents
         and on the part of the Tenant to be observed and performed and that if
         the Tenant shall make any default in the payment of the said rent in
         the manner aforesaid or in observing and performing the said covenants
         and conditions or any of them then and in every such case the Guarantor
         will pay and make good to the Landlord on demand all losses damages
         costs and expenses sustained by the Landlord through the default of the
         Tenant in respect of any of the before-mentioned matters PROVIDED
         ALWAYS that notwithstanding the neglect or forbearance by the Landlord
         to enforce against the Tenant the payment of the said rent or the
         observance or performance of the Tenant's covenants and conditions or
         the

                                      (36)

<PAGE>

         giving of time by the Landlord to the Tenant in relation thereto the
         Guarantor shall not thereby be discharged from liability under this
         covenant nor shall such liability be in any way lessened or affected
         thereby

 (2)     The Guarantor HEREBY FURTHER COVENANTS with the Landlord that if the
         Tenant shall go into liquidation and the Liquidator shall disclaim
         these presents or if the Tenant shall be dissolved or cease to exist
         (or if the Tenant for the time being shall be an individual and shall
         become bankrupt and the Trustee in Bankruptcy shall disclaim these
         presents) and if the Landlord shall within three months after such
         disclaimer or other such event as aforesaid by notice in writing
         require the Guarantor to accept a Lease of the demised premises for a
         term commensurate with the residue which but for such disclaimer or
         other event would have remained of the term granted by these presents
         at the same rent and subject to the like covenants and conditions as
         are reserved by and contained in these presents (with the exception of
         this sub-clause and the immediately preceding subclause) the said new
         Lease and the rights and liabilities thereunder to take effect as from
         the date of the said disclaimer or of such event as aforesaid then and
         in such case the Guarantor shall pay the costs of and accept such new
         Lease accordingly and will execute and deliver to the Landlord a
         Counterpart thereof

 (3)     It is hereby agreed and declared that as between the Landlord and the
         Guarantor the Guarantor shall be deemed to be a principal debtor

         IN WITNESS whereof the Landlord and the Tenant have hereunto caused
their respective Common Seals to be hereunto affixed and the Guarantor has
hereunto set his hand and seal the day and year first before written

                                      (37)

<PAGE>

                      THE FIRST SCHEDULE before referred to

         ALL THAT premises being land in the East side of Woodfield Place and
North side of Woodfield Road Paddington situate now known as 21/31 Woodfield
Place London W.9. in respect of which the Landlord is or is entitled to be
registered at H.M. Land Registry as Registered Proprietor under Title Number NGL
220299 and more particularly shown for purposes of identification only and not
by way of admeasurement or delineation on the plan annexed hereto and thereon
edged in red but not the airspace above or to the side of the demised premises
TOGETHER WITH the appurtenances thereto belonging Together with all Landlord's
fixtures and fittings plant and machinery and all wires pipes flues drains and
cables and other services situate within the demised premises and exclusively
serving the same and Together with all additions alterations and improvements
thereto which may be carried out during the term

                     THE SECOND SCHEDULE before referred to
                 (Exceptions and Reservations out of the Demise)

(1)      Unto the Landlord the right to erect or to consent hereafter to any
         person erecting a new building or to alter any building for the time
         being on any land or other property adjoining adjacent neighbouring or
         opposite the demised premises notwithstanding that such alteration or
         erection may diminish the access of light and air enjoyed by the
         demised premises and the right to deal with any property adjoining
         opposite or near to the demised premises as it may think fit
         notwithstanding that the light or air to the demised premises is
         thereby diminished

                                      (38)

<PAGE>

(2)      Unto the Landlord and the owners and occupiers of the adjoining or
         neighbouring property and others so authorised the right of passage and
         running of water soil gas and electricity or other services or supplies
         from and to such adjoining or neighbouring property through such of the
         sewers drains conduits gutters watercourses pipes cables wires and
         mains serving such adjoining and neighbouring property which now are or
         may before the expiration of a period of twenty-one years after the
         death of the last survivor of the descendants now living of his late
         Majesty King George VI hereafter be in on or under the demised premises
         and the right to enter upon the demised premises (making good forthwith
         all damage caused to the demised premises to the reasonable
         satisfaction of the Tenant) for the purposes of inspecting repairing
         renewing laying relaying cleansing maintaining and connecting up to any
         such existing or future sewers drains conduits gutters watercourses
         pipes cables wires and mains

THE COMMON SEAL of UNIQUE JEANS      )
LIMITED was hereunto affixed in the  )
presence of:-                        )

                        /s/ [ILLEGIBLE]
                        ---------------
                            Director

                        /s/ [ILLEGIBLE]
                        ---------------
                            Secretary

                                                                          [SEAL]

                                      (39)<PAGE>

                                                                    EXHIBIT 10.2

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

                                LEASE DATED AS OF
                                  APRIL 1, 2000
                                 BY AND BETWEEN
                    THE RECTOR, CHURCH-WARDENS AND VESTRYMEN
             OF TRINITY CHURCH IN THE CITY OF NEW YORK, AS LANDLORD

                                       AND

                           PHOTODISC, INC., AS TENANT

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

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

                                Entire 2nd Floor

                               12-16 Vestry Street

                               New York, New York

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

                Parish of Trinity Church in the City of New York
                             Real Estate Department
                                74 Trinity Place
                          New York, New York 10006-2088

<PAGE>

                                TABLE OF CONTENTS

 ARTICLE ONE
         TERM; RENT; FREE RENT............................................  (1)

 ARTICLE TWO
         USE .............................................................  (2)

 ARTICLE THREE
         REPAIRS; NOISE AND VIBRATION.....................................  (3)

 ARTICLE FOUR
         ALTERATIONS AND FIXTURES.........................................  (4)

 ARTICLE FIVE
         COMPLIANCE WITH GOVERNMENTAL RULES AND REGULATIONS...............  (6)

 ARTICLE SIX
         RULES AND REGULATIONS............................................  (7)

 ARTICLE SEVEN
         PLATE GLASS......................................................  (7)

 ARTICLE EIGHT
         CARE OF SIDEWALKS................................................  (8)

 ARTICLE NINE
         LANDLORD'S ACCESS TO THE PREMISES................................  (8)

 ARTICLE TEN
         ELECTRIC CURRENT; LIVE STEAM.....................................  (8)

 ARTICLE ELEVEN
         CONDEMNATION AND DEMOLITION...................................... (10)

 ARTICLE TWELVE
         MECHANIC'S LIENS................................................. (11)

 ARTICLE THIRTEEN
         SUBORDINATION.................................................... (11)

 ARTICLE FOURTEEN
         CERTIFICATE OF OCCUPANCY......................................... (13)

 ARTICLE FIFTEEN
         VAULTS........................................................... (13)

 ARTICLE SIXTEEN
         FIRE AND OTHER CASUALTY.......................................... (13)

 ARTICLE SEVENTEEN
         CHANGE IN USE OF PREMISES, SUBLETTING AND ASSIGNMENT............. (15)

 ARTICLE EIGHTEEN
         WAIVER AND SURRENDER; REMEDIES CUMULATIVE........................ (21)

                                      -ii-

<PAGE>

THIS LEASE made as of the 1st day of April, 2000 between THE RECTOR,
CHURCHWARDENS AND VESTRYMEN OF TRINITY CHURCH IN THE CITY OF NEW YORK, a
religious corporation (hereafter referred to as "the Landlord"), having its
offices at 74 Trinity Place, Borough of Manhattan, City, County and State of New
York, and PHOTODISC, INC. (hereafter referred to as "the Tenant"), a corporation
organized under the laws of the state of Washington, having an address at 701
North 34th Street, Suite 400, Seattle, Washington 98103. '

                              W I T N E S S E T H:

        That the Landlord hereby lets and leases to the Tenant, and the Tenant
hereby takes and hires from the Landlord, the following described space: the
entire 2nd floor (such space is hereafter referred to as the "Premises" and
shown as the cross-hatched area on Exhibit A annexed hereto) in the building
known as 12-16 Vestry Street in the Borough of Manhattan, City, County and State
of New York (hereafter referred to as "the building"), with the privilege to the
Tenant of using (subject to such reasonable rules and regulations as the
Landlord shall from time to time prescribe) the necessary entrances and
appurtenances to the premises, reserving to the Landlord all other portions of
the building not herein specifically demised. This letting is upon the following
covenants and conditions, each and every one of which the Tenant covenants and
agrees with the Landlord to keep and perform, and the Tenant agrees that the
covenants herein contained on the part of the Tenant to be performed, shall be
deemed conditional limitations, as well as covenants and conditions.

                                   ARTICLE ONE
                              TERM; RENT; FREE RENT

        (a) The term shall commence on April 1, 2000 (the "Commencement Date"),
and shall expire on March 31, 2015 (or until such term shall sooner cease and
expire or be terminated as hereinafter provided) (the "Expiration Date"), at an
annual rent (the "fixed rent") of

        (i) during the period April 1, 2000 to March 31, 2007, 12-16 Vestry -
        One Hundred Twenty-eight Thousand, Three Hundred Four and no/100 Dollars
        ($128,304.00), payable in equal monthly installments of Ten Thousand,
        Six Hundred Ninety-two and no/100 Dollars ($10,692.00); and

        (ii) during the period April 1, 2007 to March 31, 2015, One Hundred
        Forty-two Thousand, Five Hundred Sixty and no/100 Dollars ($142,560.00),
        payable in equal monthly installments of Eleven Thousand, Eight Hundred
        Eighty and no/100 Dollars ($11,880.00).

        (b) Fixed rent shall be payable in advance on the first day of each
month during the term of this lease at the offices of the Landlord or at such
other place as the Landlord may designate. The Tenant shall pay the fixed rent
without demand therefor and without any set-off, deduction, abatement or offset
whatsoever, except that the Tenant shall pay the first monthly installment of
fixed rent upon the execution of this lease. If the Commencement Date applicable
to any portion of the Premises occurs on a day other than the first day of a
calendar month, the fixed rent for such calendar month shall be pro-rated based
on the number of days in the month. All rent payments shall be paid in lawful
money of the United States of America, which shall be legal tender in payment of
any debts and dues, public and private, at the time of payment by good and
sufficient check subject to collection and drawn on a New York City bank or
trust company which is a member of the New York Clearinghouse Association.

        (c) All sums and charges other than fixed rent due and payable by the
Tenant pursuant to this lease, including, without limitation, charges for
electricity (as defined in Article TEN), escalation charges (as defined in
Article THIRTY) and late charges assessed pursuant to this lease are called
"additional rent". All regularly recurring items of additional rent, including,
without limitation, escalation charges which are payable on a monthly basis
pursuant to the provisions of Article THIRTY, shall be due and payable together
with the fixed rent on the first day of each month during the term of this
lease. All other items of additional rent shall be paid to the Landlord within

<PAGE>

fifteen days after delivery of a notice or demand therefor, unless otherwise set
forth herein. Fixed rent and additional rent are collectively referred to herein
as "rent". The failure of the Tenant to make any payment of additional rent
shall entitle the Landlord to exercise all of the rights and remedies provided
herein for the non-payment of fixed rent.

        (d) Intentionally omitted.

        (e) If any installment of rent shall not be paid within ten (10) days
following the date on which the same shall be due and payable pursuant to this
lease then, in addition to, and without waiving or releasing any other rights
and remedies of the Landlord, the Tenant shall pay to the Landlord a late charge
of one and one-half (1 1/2%) percent per month computed (on the basis of a
30-day month) from the date on which each such installment became due and
payable to the date of payment of the installment on the amount of each such
installment or installments, as liquidated damages for the Tenant's failure to
make prompt payment, and the same may be collected on demand.

        (f) In the event any check issued by the Tenant is dishonored for any
reason, the Tenant shall submit a replacement check within three (3 ) business
days following notice from the Landlord that the check was dishonored. Tenant's
failure to submit a replacement check within such time period shall constitute
an Event of Default under this lease.

        (g) Notwithstanding the foregoing, provided no Event of Default shall
have occurred which shall remain uncured, the Tenant shall not be required to
pay fixed rent with respect to a particular portion of the Premises for the
period beginning on the Commencement Date for that portion of the Premises and
ending four months after the completion of the Landlord's Initial Work (as
described in the Work Sheet attached hereto and made a part hereof); provided,
however, that the Tenant shall during such abatement period pay all other
amounts due under this lease including, but not limited to, any additional rent
payable pursuant to Article THIRTY of this lease and any service charges for
electric current, and overtime elevator, air-conditioning or heat services. Upon
the occurrence of an Event of Default, the fixed rent at the monthly rate set
forth in this lease shall be payable during the period in which the Tenant would
otherwise be entitled to the use of the Premises free of fixed rent. Any such
rent payment shall be paid within five days after demand therefore and shall
constitute additional rent under this lease.

                                   ARTICLE TWO
                                       USE

        (a) The Tenant shall use the Premises only for a distribution center in
connection with Tenant's business of providing high-quality photography, moving
images, art prints and related products, and for general office purposes in
connection therewith, except that if all or a portion of the Premises shall be
sublet in accordance with the terms of this lease, or if this lease shall be
assigned in accordance with the terms of this lease, then the use shall be
consistent with the certificate of occupancy for the building

        (b) If any portion of the Premises consists of basement space, such
portion shall be used only for storage purposes.

        (c) No auction sale and no other sale of all or substantially all of the
Tenant's property, stock, fixtures and machinery, except a sale made in
connection with an assignment of this lease to another tenant for which the
Landlord's consent shall have been obtained, shall be held at the Premises
unless the provisions of Article THIRTY-ONE (g) of this lease shall have been
complied with.

                                       (2)

<PAGE>

                                  ARTICLE THREE
                          REPAIRS; NOISE AND VIBRATION

        (a) The Tenant shall take good care of the Premises and the fixtures,
appurtenances, equipment and facilities therein and shall make, as and when
needed, all repairs in and about the Premises required to keep them in good
order and condition; such repairs to be equal in quality to the original work
provided that the Tenant shall not be obligated for structural or exterior
repairs to the building or for repairs to the systems and facilities of the
building for the use or service of tenants generally, except where structural or
exterior repairs or repairs to such systems and facilities are made necessary by
reason of one or more of the occurrences described below in clauses (i) through
(iv) of this Article THREE (a). All repairs for which the Tenant is responsible
pursuant to this Article shall be made by a contractor reasonably approved by
the Landlord. Should the Tenant fail to repair any condition in or about the
Premises or the fixtures, appurtenances, equipment and facilities therein which
is of such a nature that its neglect would result in damage or danger to the
building, its fixtures, appurtenances, facilities and equipment, or to its
occupants (of which Landlord's judgment, reasonably exercised, shall be
conclusive) or, in the case of repairs of any other nature, should the Tenant
have failed to make the required repairs or to have begun in good faith, the
work necessary to make them within five business days after notice from the
Landlord of the condition requiring repair, the Landlord may, in either such
case, immediately enter the Premises and make the required repairs at the
expense of the Tenant. The Landlord may make, at the expense of the Tenant, any
repairs to the building or to its fixtures, appurtenances, facilities or
equipment, whether of a structural or any other nature, which are required by
reason of damage or injury due (i) to the negligence or willful misconduct of
the Tenant or its employees, agents, licensees or visitors; (ii) to the moving
into or out of the building, of property being delivered to the Tenant or taken
from the Premises by or on behalf of the Tenant; (iii) to the installation,
repair or removal, use or operation of the property of the Tenant in the
Premises; or (iv) to the faulty operation of any machinery, equipment, or
facility installed in the Premises by or for the Tenant. The Tenant will pay the
cost of any repairs made by the Landlord pursuant to this paragraph within
fifteen days after presentation of bills therefor, or the Landlord may, at its
option, add such amounts to any installment or installments of rent due under
this lease and collect the same as additional rent. The liability of the Tenant
under this Article THREE shall survive the expiration or other termination of
this lease for a period of one year.

        (b) Except to the extent hereinabove set forth, and subject to the
provisions of Article SIXTEEN, the Landlord shall maintain in working order and
repair the exterior and the structural portions of the building, including the
structural portions of the Premises, and the public portions of the building
interior and the building plumbing, electrical, heating, fire protection, life
safety, sprinkler and ventilating systems, (excluding all ductwork, diffusers,
thermostat controls and any other part of the ventilating system located outside
of the machine room, if any, on the floor) serving the Premises. The Tenant
shall give prompt notice of any defective condition in the Premises for which
the Landlord may be responsible hereunder. There shall be no allowance to the
Tenant for diminution in rental value and no liability on the part of the
Landlord by reason of inconvenience, annoyance or injury to business arising
from the Landlord or others making repairs, alterations, additions or
improvements in or to any portion of the building or the Premises or in and to
the fixtures, appurtenances or equipment thereof. It is specifically agreed that
the Tenant shall not be entitled to any set off or reduction of rent by reason
of any failure of the Landlord to comply with the provisions of this or any
other Article of the lease. Landlord shall use reasonable commercial efforts to
minimize any interference with the conduct of Tenant's business on account of
the work undertaken by Landlord in accordance with this Article Three, but
Landlord shall not be required to perform any such work on an overtime basis.

        (c) Tenant shall not install or maintain equipment, machinery or
manufacturing equipment of any description in the Premises, the operation of
which produces noise or vibration which is transmitted beyond the Premises. If
the Tenant does install such equipment or machinery and the Landlord deems it
necessary that the noise or vibration of such machinery or equipment be
diminished, eliminated, prevented or confined to the Premises, the Landlord may,
at its election, give written notice to the Tenant, requiring that the Tenant
provide and install rubber or other approved settings for absorbing, preventing
or decreasing the noise or vibration of such machinery or equipment within
fifteen days and if such measures are unsuccessful that the Tenant immediately

                                       (3)

<PAGE>

remove said equipment from the Premises within fifteen days. The judgment of the
Landlord of the necessity of such installation shall be conclusive, and the
installation shall be made in such manner and of such material as the Landlord
may direct. Should the Tenant fail to comply with such request within fifteen
days, the Landlord may do the work necessary to absorb, prevent or decrease the
noise or vibration of such machinery or equipment and the Tenant will pay to the
Landlord the cost of such work within fifteen days after demand or such cost
may, at the option of the Landlord, be added to any installment or installments
of rent under this lease and shall be payable by the Tenant as additional rent.

                                  ARTICLE FOUR
                            ALTERATIONS AND FIXTURES

        (a) The Tenant shall not make any alteration, addition or improvement in
or upon the Premises, nor incur any expense therefor, without having first
obtained the written consent of the Landlord therefor. The Tenant shall not be
required to obtain the Landlord's consent for alterations, additions or
improvements which are decorative in nature, such as painting or carpeting
(although the Tenant shall give the Landlord prior written notice of the
performance of such work). If the Tenant shall desire to make alterations,
additions or improvements to fit out the Premises for the Tenant's use which
will not affect the exterior of the building or adversely affect the structure
of the building or the operation of any of the systems or facilities of the
building for the use of any tenant or violate the requirements of government
hereafter referred to, the Landlord's approval will not be unreasonably withheld
or delayed. In no event shall the Tenant make any alteration at any time when an
Event of Default is outstanding. Any and all alterations may be made only
subject to and in compliance with the following, as well as all other reasonable
rules and regulations promulgated by the Landlord with respect to the
performance of alterations:

        (i) Prior to the commencement of any alteration, the Tenant shall,
        except in an emergency, give at least 30 days' notice to Landlord for
        all alterations and shall obtain the Landlord's prior approval of the
        licensed architect and/or licensed professional engineer and the
        contractors and/or mechanics selected by the Tenant, as well as the
        Landlord's prior written approval of detailed plans and specifications
        prepared by the approved architect and/or engineer and shall reimburse
        the Landlord for its out-of-pocket expenses for outside consultants to
        review such plans and specifications; and no alterations shall be made
        except as are in all material respects in accordance with such plans and
        specifications or any approved changes thereto. If requested by the
        Landlord, the Tenant shall submit a copy of the general contractor's
        contract or other contract for the alterations which shall show the cost
        thereof.

        (ii) No alteration shall be commenced until the Tenant shall have
        obtained and paid for all required permits and authorizations of any
        City, State or Federal governmental agency or any board, bureau,
        department or body thereof, having or asserting jurisdiction, copies of
        which shall be supplied to the Landlord. Landlord shall reasonably and
        diligently cooperate with Tenant in connection with the performance of
        its alterations, additions or improvements, and with respect to
        alterations approved by Landlord, shall cooperate (but at no expense to
        Landlord) with Tenant and execute such documents as may be reasonably
        required by Tenant to obtain such permits and authorizations, including,
        without limitation, alteration applications.

        (iii) Prior to the commencement of any alteration, the Tenant shall
        submit to the Landlord duplicate original policies or certificates
        thereof of worker's compensation insurance covering all persons employed
        in connection with the work, and builder's all risk and comprehensive
        general public liability insurance in such reasonable and customary
        amounts and with such companies as may be reasonably approved by the
        Landlord and such coverage shall be maintained until all such
        alterations have been completed. Such policies shall name the Landlord
        and any mortgagee or holder of any ground or underlying lease as
        additional named insureds.

                                       (4)

<PAGE>

        (iv) Upon completion of the alterations, the Tenant, at the Tenant's
        expense shall obtain certificates of final approval as may be required
        by any governmental agency, board, bureau, department or body thereof,
        and shall deliver such approvals to the Landlord, together with
        "as-built" plans and specifications for such alterations. In addition,
        one copy of final drawings shall be delivered to the Landlord in
        AutoCad, Release 14 format, either on a 3 1/2" disk or CD Rom, or such
        other format as shall from time to time be reasonably designated by the
        Landlord.

        (v) The cost of all alterations shall be paid when due so that the
        Premises shall at all times be free of liens for labor and materials
        supplied or claimed to have been supplied to the Premises and free from
        any encumbrances, or security interests.

        (vi) All alterations, additions or improvements shall be made and
        installed in a good and workmanlike manner and shall comply with all
        requirements, by law, regulation or rule, of the Federal, State and City
        Governments and all subdivisions and agencies thereof, and with the
        requirements of the New York Fire Insurance Exchange, New York Board of
        Fire Underwriters and all other bodies exercising similar functions, and
        shall conform to any particular reasonable requirements of the Landlord
        expressed in its consent for the making of any such alterations,
        additions, and improvements. The Landlord's review and approval of the
        Tenant's plans shall not constitute, nor be deemed to constitute a
        representation or agreement by the Landlord that such plans and
        specifications comply with such requirements. Such compliance shall be
        the sole responsibility of the Tenant.

        Any such work once begun shall be completed with all reasonable
dispatch, but shall be done at such time and in such manner as not to interfere
unreasonably with the occupancy of any other tenant or the progress of any work
being performed by or on account of the Landlord. If requested to do so by the
Tenant in connection with the Landlord's approval of any alteration, addition or
improvement, the Landlord will advise the Tenant whether the alteration,
addition or improvement will be required to be removed by the Tenant at the
expiration or earlier termination of this lease or may remain upon the Premises
to become the property of the Landlord. If no such advice is given by the
Landlord, the provision of subdivision (b) of this Article shall apply.

        (b) All alterations, additions or improvements, which may be made or
installed in or upon the Premises (whether made during or prior to the term of
this lease or during the term of any prior lease of the Premises by the
Landlord, the Tenant or any previous tenant), except the furniture, trade
fixtures, stock in trade, and like personal property of the Tenant, shall be
conclusively deemed to be part of the freehold and the property of the Landlord,
and shall remain upon the Premises, and, upon the expiration or any termination
of the term of this lease, shall be surrendered therewith as a part thereof,
except for any Specialty Alterations which shall, unless the Landlord advises
the Tenant to the contrary, be removed by the Tenant, at the Tenant's expense,
upon the expiration or earlier termination of this lease, provided, however,
that alterations, additions and improvements installed by the Tenant at Tenant's
expense shall remain the property of Tenant until the expiration or earlier
termination of this lease, but Tenant shall not remove, destroy or alter such
alterations, additions and improvement without Landlord's consent and, in any
event, shall replace such alterations, additions and improvements with
alterations, additions or improvements of equal or greater value. A "Specialty
Alteration" shall mean an alteration which is in excess of standard office
installations such as kitchens, cafeterias, vaults, sloping, terraced or raised
floors, internal staircases, and other slab penetrations, data centers, fire
suppression or uninterrupted power supply systems, generators, fuel tanks,
dumbwaiters, and other improvements of a similar nature. The Tenant, at or prior
to the expiration or any termination of the term of this lease shall, at its own
expense, remove all its furniture, trade fixtures, stock in trade and like
personal property. The Tenant shall restore and repair, at its own cost and
expense, any damage or disfigurement of the Premises occasioned by any such
removals or remaining after such removals, so as to leave the Premises in good
order and condition or, the Landlord, at its option, may do such restoration and
repair and the Tenant will pay the reasonable cost thereof upon demand. If any
furniture, trade fixtures, stock in trade or other personal property of the
Tenant shall not be removed at the expiration or any termination of this lease,
the Landlord, at the Landlord's option, may treat the same as having been
irrevocably abandoned, in which the Tenant shall have no further right, title or
interest therein and the Landlord may remove the same from the Premises,
disposing of them in any way which the Landlord sees fit

                                       (5)

<PAGE>

to do, and the Tenant shall, on demand, pay to the Landlord the expense incurred
by the Landlord for the removal thereof, as well as the cost of any restoration
of the Premises above provided. The Tenant's obligations under this subdivision
(b) of this Article FOUR shall survive the expiration of this lease for a period
of one year.

        (c) The Landlord may at any time during the term of this lease, change
the arrangement or location of the entrance or passageways, doors and doorways,
and the corridors, elevators, stairs, toilets or other parts of the building
used by the public or in common by the Tenant and other tenants (including,
without limitation, the conversion of elevators from a manually-operated to an
automatic self-service basis) and may alter staffing of the building and the
scale and manner of the operation thereof, provided that the services to which
the Tenant is entitled as specified in this lease are not diminished and may
alter the facilities, fixtures, appurtenances and equipment of the building as
it may deem the same advisable, or as it may be required so to do by any
governmental authority, law, rule or regulation, and provided further that
Landlord shall use commercially reasonable efforts to minimize interference with
the conduct of Tenant's business in making such changes and provided that such
changes do not materially reduce the accessibility of the Premises. The Landlord
may change the name, street number or designation by which the building is
commonly known.

        (d) The Tenant shall not at any time prior to or during the term of this
lease, directly or indirectly, employ or permit the employment of any
contractor, mechanic or laborer in or about the Premises, whether in connection
with any alteration or improvement or the providing of any services or
otherwise, if such employment would, in the reasonable judgment of the Landlord,
disrupt, or interfere or cause any conflict with, any other contractors,
mechanics, or laborers engaged by the Landlord or any other tenant in the
building. In the event of any such disruption, interference or conflict, the
Tenant, upon demand of the Landlord, shall immediately cause all contractors,
mechanics or laborers causing such disruption, interference or conflict to leave
the building.

        (e) The Tenant, at its own sole cost and expense, shall defend the
Premises and the Landlord against all suits for the enforcement of any mechanics
lien or any bond in lieu of such lien, and the Tenant hereby indemnifies the
Landlord and the Premises against any and all damages, expenses, or liabilities
resulting from any such lien or suit. Should the Tenant fail to commence or
diligently proceed to timely discharge any such lien, the Landlord may do so by
payment, bond, or otherwise on thirty days' prior written notice to the Tenant
and the amount paid or incurred therefor by the Landlord shall be payable by the
Tenant as additional rent. Tenant represents and warrants that it has not
performed any alterations in the Premises prior to the Initial Premises
Commencement Date.

        (f) If, in connection with the performance of any alterations, additions
or improvements to the Premises, there is any violation against the building,
the curing of which shall be the responsibility of Landlord, which shall result
in actual delay to Tenant or prevent Tenant from obtaining any governmental
permits, consents, approvals or other documentation to commence or complete
Tenant's alterations, additions or improvements, or prevent the physical (as
opposed to legal) occupancy of the Premises, or if any governmental agency with
jurisdiction orders Tenant not to occupy the Premises, then Landlord shall
promptly and diligently proceed to cure and remove of record such violations and
Tenant shall be entitled to an abatement of rent equal to the fixed rent and
additional rent allocable to the portion of the Premises in which such
alterations, additions or improvements are prevented from being performed or
completed, or with respect to which Tenant has been ordered not to occupy, for
the period during which Tenant shall be so prevented from performing such
alterations, additions or improvements. Such abatement period shall not commence
any earlier than the date which is ten business days following notice from
Tenant to Landlord of a violation which prevents Tenant from proceeding with its
alterations, additions or improvements, and such abatement period shall only
commence if Landlord has not cured such violation within the ten-business-day
period following Tenant's notice.

                                  ARTICLE FIVE
               COMPLIANCE WITH GOVERNMENTAL RULES AND REGULATIONS

        The Tenant shall promptly comply, at the Tenant's own expense, with all
laws, ordinances, regulations and requirements now or hereinafter enacted, of
the City, State and Federal Government,

                                       (6)

<PAGE>

and all subdivisions and agencies thereof, and the New York Fire Insurance
Exchange, the New York Board of Fire Underwriters, and of any fire insurance
rating organization, and of all other departments, bureaus, officials, boards
and commissions with regard to the Premises or the use thereof by the Tenant,
and (if the Premises are situated on the ground floor) the sidewalks adjoining
the same in so far as such compliance is made necessary by the Tenant's use of
the sidewalks, provided that the Tenant shall not be required to make structural
alterations or additions to the Premises, alterations to any building systems
servicing the Premises, or alterations to any common areas in the building
utilized by Tenant and other tenants, except where the same are required by
reason of the nature of the Tenant's use of the Premises, the alterations
performed in the Premises by the Tenant, the manner in which its business is
carried on in the Premises, or a failure on the part of the Tenant to conform to
the provisions of this lease. Tenant shall not be required to comply with any
such laws, ordinances, regulations and requirements for so long as Tenant shall
be contesting, diligently and in good faith, Tenant's obligation to comply
therewith through appropriate proceedings brought in accordance with applicable
law, provided that Tenant's failure to comply shall have no adverse effect on
Landlord or on other tenants in the building. The Tenant will not permit the
maintenance of any nuisance upon the Premises or permit its employees, licensees
or visitors to do any illegal act therein, or in and about the building after
notice thereof from the Landlord. If any such law, ordinance, regulation or
requirement shall not be promptly complied with by the Tenant, then the Landlord
may, at its option, enter upon the Premises to comply therewith, and should any
fine or penalty be imposed for failure to comply therewith or by reason of any
such illegal act, the Tenant agrees that the Landlord may, at its option, pay
such fine or penalty, which the Tenant agrees to repay to the Landlord, with
interest (as set forth in Article Twenty-Four) from the date of payment, as
additional rent.

                                   ARTICLE SIX
                              RULES AND REGULATIONS

        The Tenant and the Tenant's employees, and any other persons subject to
the control of the Tenant, shall well and faithfully observe all the rules and
regulations annexed hereto as Schedule A, and also any and all reasonable rules
and regulations affecting the Premises, the building or the equipment,
appurtenances, facilities and services thereof, hereafter promulgated by the
Landlord. The Landlord may at any time, and from time to time, prescribe and
regulate the placing of safes, machinery and other things, and regulate which
elevator and entrance shall be used by the Tenant's employees, and for the
Tenant's shipping; and may make such other and further rules and regulations as
in its reasonable judgment may, from time to time, be needed or desirable for
the safety, care or cleanliness of the building and for the preservation of good
order therein. The Landlord shall not be liable to the Tenant for violations of
any rules and regulations by any other tenant, its servants, employees, agents,
visitors or licensees. Notwithstanding the foregoing, the Landlord agrees that
it shall not discriminate against the Tenant in the enforcement of the rules and
regulations promulgated by the Landlord for the building.

                                  ARTICLE SEVEN
                                  PLATE GLASS

        The Landlord may, at its option, either (i) at the Tenant's expense,
keep the plate glass, if any, in the Premises insured in the name of the
Landlord against loss or damage, the premium for which, whether by separate
policy or as a part of a schedule of another policy, shall be paid by the Tenant
to the Landlord, upon demand, or (ii) require the Tenant, at the Tenant's
expense, to keep the plate glass, if any, in the Premises insured in the name of
the Landlord against loss or damage, in which event, the Tenant shall deliver
such policy and evidence of due payment of the premium therefor to the Landlord.
The Tenant shall promptly replace, at its own expense, any and all plate and
other glass damaged or broken from any cause whatsoever in and about the
Premises. If the Tenant fails to do so, the Landlord shall have the right to
replace such glass at the Tenant's expense.

                                       (7)

<PAGE>

                                  ARTICLE EIGHT
                               CARE OF SIDEWALKS

        If the Premises, or any part thereof, consist of a first floor or any
part thereof, the Tenant shall, at the Tenant's own expense, keep the sidewalk,
gutter and curb in front thereof in a clean condition, but Tenant shall not be
responsible for removal of snow and ice from the sidewalk.

                                  ARTICLE NINE
                       LANDLORD'S ACCESS TO THE PREMISES

        (a) The Tenant shall, without in any way affecting the Tenant's
obligations hereunder, and without constituting any eviction, permit the
Landlord and its agents and designees: (i) at all reasonable hours, upon
reasonable notice, to enter the Premises and have access thereto, for the
purpose of inspecting or examining them and to show them to other persons; or
(ii) to enter the Premises (including, specifically, all mechanical and air
conditioning rooms located therein) to make repairs and alterations, and to do
any work on the Premises or any adjoining premises and any work in connection
with excavation or construction on any adjoining premises or property
(including, but not limited to, the shoring up of the building) and to take in
any of the foregoing instances, any space needed therefor, provided that any
space so taken shall not be material to the conduct of Tenant's business in the
Premises. The Tenant shall permit the Landlord to erect and maintain ducts,
pipes and conduits in and through the Premises. In the exercise of the rights of
the Landlord reserved under this Article NINE, the Landlord will do so in a
manner which minimizes, so far as is practicable, the interference with the
Tenant's use of the Premises or Tenant's wiring or improvements to the Premises
and where ducts, pipes or conduits are to be erected through the Premises will
locate them along walls or ceilings wherever practicable.

        (b) In the event that the Premises shall, in the Landlord's reasonable
judgment, become substantially vacated before the expiration of this lease, or
in the event the Tenant shall be removed by summary proceedings or in the event
that, during the last month of the term, the Tenant shall have removed all or
substantially all of the Tenant's property therefrom, the Landlord may
immediately enter into and upon said Premises for the purpose of decorating,
renovating or otherwise preparing same for a new tenant, without thereby causing
any abatement of rent or liability on the Landlord's part for other
compensation, and such acts shall have no effect upon this lease.

        (c) If the Tenant or an officer or authorized employee of the Tenant
shall not be personally present to open and permit an entry into said Premises,
at any time, when for any reason an entry therein shall be necessary or
permissible hereunder, the Landlord or the Landlord's agents, may enter the same
by a master key, or may forcibly enter the same without rendering the Landlord
or such agents liable therefor (if during such entry the Landlord shall accord
reasonable care to the Tenant's property) and without in any manner affecting
the obligations and covenants of this lease and in no event shall any such entry
by the Landlord or its agents be deemed an acceptance of a surrender of this
lease, either expressed or implied, nor a waiver by the Landlord of any covenant
of this lease on the part of the Tenant to be performed.

                                   ARTICLE TEN
                          ELECTRIC CURRENT; LIVE STEAM

        (a) So long as electric current is to be supplied by the Landlord, the
Tenant covenants and agrees to purchase the Tenant's requirements therefor at
the Premises from the Landlord or the Landlord's designated agent at a price
equal to 108% of the Rates (as hereinafter defined) set forth in the rate
schedule of Consolidated Edison Company of New York, Inc. applicable to the
building (or the conjunctional group in which the building is included), plus an
amount equal to all sales, use and gross receipt taxes and other governmental
charges or levies, generally applicable to the purchase and sale of electricity
in New York City (and without regard to whether the Landlord is exempt from
paying or collecting any such tax, charge or levy); including any adjustment for
time-of-day for either demand or consumption. As used herein, the term "Rates"
shall mean the rates for

                                       (8)

<PAGE>

all components of the aggregate cost of purchasing electricity for the building,
including, without limitation, all charges related to the generation,
transmission, distribution and service and all charges for consumption and
demand (including, without limitation, all seasonal and time-of-day adjustments
and fuel escalation charges relating to such consumption and demand charges).
All amounts payable under this Article TEN shall constitute additional rent for
the purpose of the enforcement of the Landlord's rights.

        (b) Where more than one meter measures the service of the Tenant in the
building, the service rendered through each meter may be computed and billed
separately in accord with the rates herein provided for. No current shall be
furnished until the equipment of the Tenant has been approved by the proper
authorities, and after such approval, no changes shall be made in such equipment
without the written consent of the Landlord. The Tenant shall pay, upon demand,
the bills for electric current furnished and the use of meters or the Landlord
may, at its option, add such amounts to any installment or installments of fixed
rent due under this lease and collect the same as additional rent. The Tenant
shall comply with such rules, regulations and contract provisions as are
customarily prescribed by public service corporations supplying such services,
for consumption similar to that of the Tenant.

        (c) The Landlord may discontinue the supply of electric current under
subdivision (a) at any time on sixty (60) days' notice to the Tenant without
being liable to the Tenant therefor or without in any way affecting this lease
or the liability of the Tenant hereunder or causing the diminution of rent, and
the same shall not be deemed to be a lessening or diminution of services within
the meaning of any law, rule, or regulation now or hereafter enacted,
promulgated, or issued. Should the Landlord give such notice of discontinuance,
the Tenant shall make the Tenant's own arrangements to receive such service
direct from such public utility corporation serving the building and the
Landlord shall permit the Landlord's wires, conduits and meters, to the extent
to which they are safely available for such use and to the extent to which they
may be used under any applicable governmental regulations or the regulations of
such public utility, to be used for the purpose. Should any additional or other
wiring, conduits, meters or any other or different distribution equipment be
required in order to permit the Tenant to receive such service directly from the
public utility, the same will be installed, as the Landlord shall elect, either
by the Landlord or by the Tenant, the cost of which shall be shared equally by
Landlord and Tenant. In the case of central distribution equipment which is used
in connection with the distribution or metering of current supplied to the
Tenant and other tenants of the building, and which is required to be installed
under governmental regulations or the regulations of such utility, the cost of
installation thereof will be prorated among the several tenants, serviced
through the distribution facility in the proportion which their average
consumption of electric current over the next preceding period of not less than
six month's duration bears to the total consumption of electric current by all
tenants during such period, and the Tenant shall pay to the Landlord the fifty
percent (50%) of Tenant's share of such cost of installation, apportioned as
above, within five (5) days following receipt of a statement showing the cost of
the distribution equipment and the manner in which the cost has been allocated
to the Tenant. All such facilities installed by the Tenant shall be installed in
a workmanlike manner which complies with applicable governmental regulations and
the regulations of the public utility. The Landlord will in any such case permit
any pipe-chases or channels available in the building to be used by the Tenant
for the Tenant's cables and conduits, to the extent that the same may be
available and may be safely used for the purpose.

        (d) The Landlord shall not in any way be liable or responsible to the
Tenant for any loss or damage or expense which the Tenant may sustain or incur
if either the quantity or character or electric service is changed or is no
longer available or suitable for the Tenant's requirements, nor shall the
Landlord be in any way responsible for any interruption of service due to
breakdowns, repairs, malfunction of electrical equipment or any other cause
relating to electrical service which is beyond the Landlord's reasonable
control. The Tenant covenants and agrees that at all times its use of electric
current shall never exceed the capacity of existing feeders to the Tenant's
floor(s) or space (if less than an entire floor) or the capacity of the risers
or wiring installation in the building. The Tenant agrees not to connect any
additional electrical equipment to the building electrical distribution system,
other than lamps, typewriters, computers, scanners, printers, servers, copiers,
and other small office machines which consume comparable amounts of electricity,
without the Landlord's prior written consent. If, in the Landlord's sole
judgment, reasonably exercised, the

                                       (9)

<PAGE>

Tenant's electrical requirements necessitate installation of an additional
riser, risers or other necessary equipment, the same may be installed by the
Landlord at the sole cost and expense of the Tenant (together with Tenant's
Proportionate Share of any electrical panels which are required to be installed
as a result of the installation of such additional risers), which shall be
chargeable and collectible as additional rent. If the Tenant makes written
request to install a riser or risers to supply the Tenant's electrical
requirements, such request shall be subject to the prior written consent of the
Landlord in each instance, and such riser, risers or other equipment shall be
installed by the Landlord at the sole cost and expense of the Tenant, if in the
Landlord's sole judgment, reasonably exercised, the same are necessary and will
not cause or create a dangerous or hazardous condition or entail excessive or
unreasonable alterations, repairs or expense or interfere with or disturb other
tenants or occupants. If the Tenant is not utilizing the full electrical
capacity available to the Premises, the Landlord shall have the right to make
such excess capacity available to other occupants of the building. Prior to
taking such excess capacity, Landlord shall notify Tenant of its intention to do
so, and Tenant shall have two weeks in which to demonstrate that Tenant has an
impending need for such electrical capacity. If in Landlord's reasonable
judgment, Tenant fails to demonstrate an impending need for such electrical
capacity, Landlord shall be entitled to proceed to make such excess capacity
available to other occupants of the building.

        (e) If there be any facilities for the supply of live steam in the
building, such steam shall be supplied to the Tenant only if separate agreements
are made therefor and pursuant to such arrangements. In the event that such
separate agreements shall be made, the appropriate provisions of this Article
TEN shall be applicable thereto.

                                 ARTICLE ELEVEN
                           CONDEMNATION AND DEMOLITION

        (a) If the Premises or any part thereof, shall be taken or condemned for
any public or quasi public use (other than for temporary use or occupancy), this
lease and the term hereby granted shall terminate as of the date of vesting of
title by reason of such taking. If any other part of the building shall be so
taken and such taking shall, in the reasonable judgment of the Landlord, make
the operation of the building impractical, unprofitable or uneconomical or would
make substantial structural alterations or reconstruction of the building
necessary (even though no part of the Premises be taken), the Landlord may, at
its option, give to the Tenant, at any time after the vesting of title and prior
to the actual taking of possession, thirty (30) days' notice of intention to
terminate this lease, and upon the date designated in such notice, this lease
and the term hereby granted shall terminate. Anything herein to the contrary
notwithstanding, if ten (10%) percent or less of the Premises shall be so
acquired or condemned, the Landlord, at its option, may elect not to terminate
this lease and, in such case, the Landlord shall, at its expense, restore that
part of the Premises not so acquired or condemned to a self-contained rental
unit exclusive of the Tenant's alterations. In no event shall any condemnation
award be apportioned, and the Tenant hereby assigns to the Landlord all right
and claim to any part of such award, but the rent, and all other sums payable by
the Tenant, shall be apportioned as of the date of any such termination of this
lease with respect to all or part of the Premises, as the case may be, and in
the case of a partial taking, prospective rent obligations which are based on
square footage shall be adjusted accordingly. Nothing contained in the foregoing
portion of this Article ELEVEN shall be deemed to prevent the Tenant's making
claim for and retaining an award for the damage to or loss of value of its trade
fixtures and such of the installations made by the Tenant as remain the Tenant's
property or from making claim for and retaining any award which may be made to
the Tenant for the Tenant's moving expenses if, and to the extent that, the
award to be claimed and retained by the Tenant is independent of and does not
result in a diminution of the award, and is not payable out of the award to the
Landlord for the taking of the land, building and the Landlord's other property.

        (b) If the Landlord shall desire to demolish or substantially alter the
building wherein the premises are located, the Landlord shall have the right and
option to terminate the term of this lease at any time during the term thereof
upon giving to the Tenant not less than six months' notice of the Landlord's
election to terminate this lease and of the date, which shall be the last day of
a calendar month, not less than 180 days following the date of the Landlord's
notice of election to terminate, on which Landlord elects that this lease shall
terminate and come to an end, together with an

                                      (10)

<PAGE>

affidavit, sworn to by an officer of the Landlord, if the Landlord at such time
is a corporation, or by a general partner of the Landlord, if the Landlord at
such time is a partnership, or by the Landlord, if the Landlord at such time is
an individual, to the effect that the Landlord, its successor in interest or a
lessee intends to demolish or substantially alter the building containing the
premises. If such notice and affidavit are given to the Tenant, then this lease
shall terminate and come to an end on the date of termination specified in the
Landlord's notice, as if that date were the date originally fixed for the
termination of the term of this lease, and on such date the Tenant shall quit,
vacate and surrender up the premises in accord with the provisions of this lease
relating to surrender at the expiration of the term.

                                 ARTICLE TWELVE
                                MECHANIC'S LIENS

        The Tenant will not permit, during the term hereby granted, any
mechanic's or other lien or order for payment of work, labor, services, or
materials furnished or to be furnished to attach to or affect the Premises or
any portion thereof, and agrees that no such lien or order shall under any
circumstances attach to or affect the fee, leasehold or other estate of the
Landlord herein, or the building. The Tenant's obligation to keep the Premises
in repair, and its right to make alterations therein, if any, shall not be
construed as the consent of the Landlord to the furnishing of any such work,
labor or materials within the meaning of any present or future lien law. Notice
is hereby given that the Tenant has no power, authority or right to do any act
or to make any contract which may create, or be the foundation for, any lien
upon the fee or leasehold estate of the Landlord in the Premises or upon the
land or building of which they are a part or the improvements now erected or
hereafter to be erected upon the Premises or the land, or building of which the
Premises are a part; and if any such mechanic's or other lien or order shall be
filed against the Premises or the land or building of which the Premises are a
part, the Tenant shall, within sixty (60) days thereafter, discharge said lien
or order by payment, deposit or by bond fixed in a proper proceeding according
to law. If the Tenant shall fail to take such action, or shall not cause such
lien or order to be discharged within sixty (60) days after the filing thereof,
the Landlord may, after five (5) days' notice to Tenant, pay the amount of such
lien or discharge the same by deposit or by bond or in any other manner
according to law, and pay any judgment recovered in any action to establish or
foreclose such lien or order, and any amount so paid, together with the expenses
incurred by the Landlord, including all reasonable attorneys' fees and
disbursements incurred in any defense of any such action, bonding or other
proceeding, shall be deemed additional rent. Any reasonable expenses incurred by
the Landlord in connection with the examination of title to the Premises in
order to ascertain the existence of any lien or encumbrance and the discharge of
record thereof, shall be payable by the Tenant to the Landlord on demand,
together with interest as aforesaid as additional rent.

                                ARTICLE THIRTEEN
                                 SUBORDINATION

        (a) Subject to the Tenant obtaining a non-disturbance agreement as
provided in paragraph (d) of this Article THIRTEEN from any existing or future
mortgagee(s) or underlying lessors, this lease, and all the rights of the Tenant
hereunder, are and shall be subject and subordinate to any and all mortgages now
or hereafter liens either in whole or in part on the building, or the land on
which it stands, and also to any and all other mortgages covering other lands or
lands and buildings, which may now or hereafter be consolidated with any
mortgage or mortgages upon the building and the land on which it stands or which
may be consolidated and spread to cover the building and such land and any such
other lands or lands and buildings, and any extension, renewal or modification
of any such mortgages, and to any and all ground or underlying leases which may
now or hereafter affect the buildings or the land on which it stands, and any
extensions, renewals or modifications thereof. This clause shall be
self-operative and no further instrument of subordination (other than the
non-disturbance agreement referred to above and in paragraph (d) below) shall be
required by any ground or underlying lessor or by any mortgagee, affecting any
lease or the building or the land on which it stands. In confirmation of such
subordination, the Tenant shall execute promptly any certificate, in recordable
form, that the Landlord may reasonably request.

                                      (11)

<PAGE>

        (b) The Tenant hereby agrees that, in the event that any mortgagee shall
succeed to the rights of the Landlord, or if any Landlord of any underlying
lease shall succeed to the position of the Landlord under this lease, then the
Tenant will recognize such successor Landlord as the Landlord of this lease and
pay the rent and attorn to and perform the provisions of this lease for the
benefit of any such successor Landlord. No documentation other than this lease
shall be necessary to evidence such attornment but the Tenant agrees to execute
any documents, in recordable form, reasonably requested by the successor
Landlord to confirm such attornment or to otherwise carry out the intent and
purposes of this Article THIRTEEN.

        (c) If, in connection with obtaining financing or refinancing for the
building of which the Premises form a part, a lender shall request modifications
to this lease as a condition to such financing or refinancing, the Tenant will
not unreasonably withhold, delay or defer its consent thereto, provided that
such modifications do not increase the obligations of the Tenant hereunder or
adversely affect the Tenant's leasehold interest. A provision requiring the
Tenant to give notices of any defaults by the Landlord to such lender and/or
permit the curing of such defaults by such lender together with the granting of
such additional time for such curing as may be reasonably required for such
lender to get possession of the building shall not be deemed to increase the
Tenant's obligations or adversely affect the Tenant's leasehold interest. In no
event shall a requirement that the consent (not to be unreasonably withheld) of
any such lender be given for any modification, termination or surrender of this
lease be deemed to materially adversely affect the leasehold interest hereby
created.

        (d) Anything herein to the contrary notwithstanding, the Landlord
represents and warrants to the Tenant that as of the date of this lease there is
no mortgage or superior lease encumbering the Premises. The Landlord, at no cost
to Tenant, shall obtain from any future mortgagee or from any future lessor of
any underlying lease, an agreement to the effect that, so long as no Event of
Default shall at the time have occurred and be continuing hereunder, the Tenant
shall not be made party to any proceeding to foreclose the mortgage or to
terminate the underlying lease; that the Tenant's possession of the Premises
under the term of this lease, shall not be terminated or disturbed as a result
of the foreclosure of any mortgage or termination of any underlying lease; that
such mortgagee or underlying lessor, as the case may be, will recognize the
Tenant as the direct tenant of such mortgagee or lessor on all of the terms and
conditions of this lease subject to the provisions hereinafter set forth;
together with such other terms as are customarily contained in a subordination,
non-disturbance and attornment agreement (any such agreement from a mortgagee or
lessor is called a "Nondisturbance Agreement"). The Tenant agrees it will
execute any agreement consistent with the foregoing provisions which may be
required to confirm the subordination of this lease subject to the
non-disturbance provisions above outlined. In any such agreement the Tenant
shall agree that, in the event that the mortgagee shall succeed to the rights of
the Landlord herein named, or if any landlord of any underlying lease shall
succeed to the position of the Landlord under this lease, then the Tenant will
recognize such successor landlord as the Landlord of this lease and pay the rent
and attorn to and perform the provisions of this lease for the benefit of any
such successor Landlord.

        (e) Any Nondisturbance Agreement may be made on the condition that, and
the Tenant hereby agrees that, neither the mortgagee nor the lessor, as the case
may be, nor anyone claiming by, through or under such mortgagee or lessor, as
the case may be, including a purchaser at a foreclosure sale, shall be:

        (i) liable for any previous act or omission of the Landlord under this
lease, except to the extent that a default continues after the date of
foreclosure or purchase of the Premises (in which case such default shall be
deemed to have occurred on the date of transfer of title to the Premises); or

        (ii) subject to any credit, claim, counterclaim, demand, defense or
offset that previously accrued to the Tenant against the Landlord under the
lease; or

        (iii) bound by any previous modification of this lease (after notice to
Tenant of the existence of such mortgage or underlying lease), or by any
previous prepayment of rent for a period greater than one month, unless such
modification or prepayment shall have been expressly

                                      (12)

<PAGE>

approved in writing by any lessor or any mortgagee who shall have succeeded to
the rights of the Landlord under this lease; or

        (iv) obligated to perform any alteration or improvements of the Premises
not expressly required under this lease; or

        (v) be responsible for (1) the performance or completion of any
construction work to be performed by the Landlord under the lease, or (2) any
reimbursement or payment required by the Landlord to the Tenant or its designees
pursuant to the Lease on account of work performed by, or for the account of,
the Tenant; or

        (vi) be liable for the repayment of any monies owed by the Landlord to
the Tenant; or

        (vii) have any obligation with respect to any security deposited under
the lease unless and to the extent such security shall have been transferred to
the mortgagee or lessor, as the case may be, or anyone claiming by, through or
under such party.

        (f) The provisions of paragraph (e) shall not be deemed to vitiate the
obligations of any mortgagee or lender succeeding to the Landlord's obligations
hereunder from and after the date such party succeeds to the Landlord's interest
under this lease.

                                ARTICLE FOURTEEN
                            CERTIFICATE OF OCCUPANCY

        (a) A true copy of the Certificate of Occupancy of the building is
annexed hereto as Exhibit B.

        (b) The Tenant shall immediately discontinue any use of the Premises,
which may, at any time, be claimed or declared by the City or State of New York
or other governmental authority to be in violation of or contrary to the
Certificate of Occupancy of the building, or by reason of which any attempt may
be made to penalize the Landlord or require the Landlord to secure any
Certificate of Occupancy other than the one, if any, now issued for the
building.

                                 ARTICLE FIFTEEN
                                     VAULTS

        Notwithstanding anything herein contained, or shown on any sketch, plan
or schedule hereto attached, to the contrary, if any vault space forms a part of
the Premises, or adjoins the same, or any part or portion of the Premises is not
within the property line of the building or Premises, and if the use of the said
space shall hereafter be prevented or curtailed by exercise of any governmental
authority, the Tenant shall have no claim whatever upon the Landlord for the
loss of such space, by any abatement of the rent, or otherwise, nor shall the
Tenant be relieved from any obligations under this lease, and the Landlord's
covenant of quiet enjoyment hereinafter contained, shall not be deemed to apply
to any such space. The Landlord makes no representation as to the location of
the property line of the building. The Tenant shall reimburse the Landlord for
the vault charge or tax, if any, imposed by the City of New York in respect of
any such vault space.

                                 ARTICLE SIXTEEN
                            FIRE AND OTHER CASUALTY

        (a) If the Premises shall be damaged by fire, action of the elements or
other casualty or cause which is within the risks covered by standard fire and
extended coverage insurance, the Tenant shall give immediate notice thereof to
the Landlord, and said damage shall be repaired by the Landlord, at the
Landlord's expense, with all reasonable speed, making due allowance for delay
due to labor troubles, settlement of loss and other causes beyond the control of
the Landlord, and the

                                      (13)

<PAGE>

Tenant shall, in every reasonable way, facilitate the making of such repairs,
and the rent shall be suspended during such period as the Premises shall have
been rendered wholly untenantable until five (5) days after the Landlord
notifies the Tenant that the Premises are substantially ready for the Tenant's
occupancy (or the Premises are sooner occupied by the Tenant) and, in the event
that the Premises are rendered partially untenantable, the rent shall be abated
during such period, in the proportion which the area of the Premises which is
rendered untenantable bears to the area of the whole Premises. In addition to
the foregoing rental abatement, provided that (i) Tenant promptly commences and
diligently prosecutes such alterations to the Premises as are necessary for
Tenant to recommence operations within the Premises, and (ii) Landlord continues
to be reimbursed by Landlord's insurance company for its rental loss, then
Tenant shall be entitled to a further abatement of rent during Tenant's
refixturing of the Premises, which abatement shall be coextensive with the
rental loss reimbursement received by Landlord from Landlord's insurance
company. The decision of Landlord's insurance company shall be conclusive and
Landlord shall have no obligation to contest the same, by litigation or
otherwise. No damage to the Premises or the building by fire, or other cause,
however extensive, shall terminate this lease, or give the Tenant the right to
quit and surrender the Premises, or impair any obligations of the Tenant
hereunder, except with respect to the payment of rent (and with respect thereto
to the extent above provided) and except that (i) if the damage shall be so
extensive that the Landlord shall determine to demolish or substantially alter
the building, whether or not the Premises are affected, the Landlord may at any
time within one hundred twenty (120) days following the occurrence of the damage
give to the Tenant thirty (30) days' notice of intention to terminate this
lease; (ii) if the damage to the Premises is substantial so that the whole or
substantially the whole of the Premises is rendered untenantable by the Tenant
or if 50% or more of the common areas of the building are destroyed or
substantially damaged and the Landlord does not within 60 days following the
occurrence of the damage notify the Tenant of the Landlord's intention to repair
the damage to the Premises so that the Premises are again useable by the Tenant
within a period of not more than 180 days following the occurrence of the damage
subject to delays due to settlement of loss or causes of the kinds described in
Article THIRTY-FOUR of this lease, the Tenant may cancel this lease by notice
given within 10 days following the expiration of the said 60-day period for the
Landlord's notice of election to repair, time being of the essence; (iii) if the
Landlord has given notice of its intention to restore the Premises, but fails to
substantially complete such restoration within 180 days following the occurrence
of the damage, subject to delays due to settlement of loss or delays of the kind
described in Article THIRTY-FOUR of this lease, the Tenant may cancel this lease
by notice given within 10 days following the expiration of the said 180-day
period, time being of the essence; and (iv) in the event of the occurrence of
damage to the Premises of the degree described above in clause (ii) of this
paragraph (a), the Landlord may also elect to terminate this lease by notice of
election to do so given within 60 days following the occurrence of the damage.
If notice of election to terminate this lease shall be given as above provided,
then, upon the date for termination designated in any such notice, this lease
and the term hereby granted shall terminate and the rent shall be apportioned as
of the date of the damage or as of such later date as the Tenant may actually
surrender possession. Nothing herein contained shall be deemed to obligate the
Landlord to restore the Tenant's trade fixtures, equipment, stocks, furnishings,
improvements or other property remaining the property of the Tenant. The Tenant
acknowledges that the Landlord will not carry insurance on the Tenant's
furniture or any fixtures or equipment, improvements or appurtenances removable
by Tenant and agrees that the Landlord will not be obligated to repair any
damage thereto or replace the same. The Tenant hereby waives the provisions of
Section 227 of the Real Property Law and agrees that the provisions of this
Article SIXTEEN shall govern and control in lieu thereof.

        (b) The Tenant shall conduct its business and use the Premises in such a
manner and so as not to increase the rate of fire insurance applicable to the
building or any property located therein over the rates in effect prior to the
commencement of the Tenant's occupancy, and the Tenant shall install and
maintain all its furniture, fixtures, equipment, stocks and materials in such a
manner as to accomplish the foregoing purposes. The Tenant further agrees not to
permit any act to be done or anything brought into or kept upon the Premises
which will void or avoid the insurer's liability under any contract of fire
insurance on the building or its contents. Should the fire insurance rate on the
building be increased beyond the present rate, by reason of the Tenant's
occupancy or character of its business, or the Tenant's failure to comply with
the terms hereof, the Tenant agrees to pay to the Landlord, on demand, the
additional cost of such insurance, or, at the option of the Landlord, the same
may be added to any installment of rent and be payable as additional rent. The

                                      (14)

<PAGE>

schedule of the makeup of a rate issued by an authorized rating organization
shall be conclusive evidence of the facts therein stated and of the items in the
rate applicable to the Premises.

        (c) The Landlord, as to the Premises, and the Tenant, as to the
improvements made therein at the Tenant's expense and all of the Tenant's stock,
trade fixtures and other property in the Premises shall each look first to any
insurance in its favor before making any claim against the other party for
recovery for loss or damage resulting from fire or other casualty, and to the
extent that such insurance is in force and collectible and to the extent
permitted by law, the Landlord and the Tenant each hereby release one another or
any one claiming through or under each of them by way of subrogation or
otherwise from all liability for any loss or damage caused by fire or any of the
risks enumerated in standard extended coverage insurance. This foregoing release
and waiver shall be in force only if both releasors' insurance policies contain
a clause providing that such a release or waiver shall not invalidate the
insurance, and also provided that such a policy can be obtained without
additional premiums. The Landlord and Tenant agree that their respective
insurance policies will include the aforesaid clause so long as the same is
obtainable without extra cost or if extra cost be charged, so long as the party
for whose benefit the clause is obtained shall pay such extra cost. If extra
cost shall be chargeable therefor the party so affected shall advise the other
thereof, of the amount of the extra cost and the other party at its election may
pay the same or decline to so pay, in which event the release from liability
given to said party by this Article SIXTEEN shall be deemed to be withdrawn and
of no force and effect.

        (d) The Landlord shall keep in full force and effect a policy of
insurance against loss or damage by fire and such other risks and hazards as are
insurable under standard forms of "all risk" insurance policies, with extended
coverage, covering the building, in an amount sufficient to avoid the effects of
co-insurance, in such amounts as the Landlord, acting reasonably, may deem
appropriate.

        (e) If notwithstanding the recovery of insurance proceeds by the Tenant
for loss, damage or destruction to its property, the Landlord is liable to the
Tenant with respect thereto or is obligated under this lease to repair or
restore such damage to Tenant's property, the amount of the net proceeds paid to
the Tenant shall either be offset against the Landlord's liability to the
Tenant, or shall be made available to the Landlord to pay for the cost of such
repair or restoration.

                                ARTICLE SEVENTEEN
              CHANGE IN USE OF PREMISES, SUBLETTING AND ASSIGNMENT

        (a) The use to be made of the Premises by the Tenant and the identity of
the Tenant being among the inducements to the making of this lease by the
Landlord, the Tenant shall not (except as otherwise permitted herein), without
first having obtained the Landlord's prior written consent thereto, and
otherwise in accordance with the terms of this lease, (i) sublet or underlet, or
permit the subletting or underletting of the Premises or any part thereof; (ii)
assign or transfer, by operation of law or transfer of stock or otherwise, this
lease or any interest therein; (iii) use or permit the Premises or any part
thereof to be used for any purposes other than those specified in the lease;
(iv) permit the Premises or any part thereof to be occupied by anyone other than
the Tenant or its officers or employees; or (v) mortgage or encumber this lease
or any interest therein.

        (b) If the Tenant shall desire to assign this lease or to sublet the
Premises, in whole or in part, the Tenant shall send to the Landlord a written
notice (the "Tenant's Notice") stating (i) the action which the Tenant proposes;
(ii) the portion of the Premises with respect to which the Tenant proposes to
take such action (the "Affected Premises"); (iii) the principal terms and
conditions of the desired assignment or subletting, including without
limitation, the rent payable, the proposed commencement and expiration dates of
the terms of the desired subletting, or the effective date of the desired
assignment; and (iv) such other information as the Landlord shall reasonably
request. The Tenant's Notice shall also contain a statement directing the
Landlord's attention to the provisions of Article SEVENTEEN (c) of the lease.

        (c) Within sixty (60) days after receipt of Tenant's Notice which
contains all the information required in paragraph (b) above, the Landlord shall
notify the Tenant (the "Landlord's Notice")

                                      (15)

<PAGE>

whether it elects to (i) terminate the lease in its entirety, if the desired
transaction is an assignment of lease or a subletting of all or substantially
all of the Premises or (ii) terminate the lease as to the Affected Premises only
if the desired transaction is a subletting of less than substantially all of the
Premises. For purposes of this Article SEVENTEEN, a Tenant shall be deemed to be
subletting "substantially all of the Premises" if the Affected Premises
constitutes seventy five (75%) percent or more of the rentable square footage of
the Premises. Landlord's recapture rights specified above shall not apply (y) to
any subletting of five years or less (unless such term exceeds 75% of the
remaining term of this lease), or (z) to any subletting where the subtenant's
space is not separately demised (this does not include sublettings of all or
substantially all of Tenant's space on a given floor), provided in either case
that Tenant is subletting not more than one third of the total rentable area of
the Premises.

        (d) If the Landlord exercises the option set forth in paragraph (c)(i)
above to terminate this lease in its entirety, then (i) the term of this lease
shall end and expire with respect to the entire Premises on the ninetieth (90th)
day following the date of Landlord's Notice and (ii) the Tenant shall surrender
the entire Premises to the Landlord on such date, in the same manner and
condition as is required by this lease, as if such date were the Expiration Date
set forth in this lease, and (iii) fixed rent and additional rent shall be
apportioned as of such expiration date. Instead of terminating the lease, the
Landlord may, at its option, elect to have the Tenant assign all of its right,
title and interest in and to this lease to the Landlord, such assignment to be
effective as of the date such lease termination would be effective and otherwise
on the terms and conditions set forth in this paragraph (d). Upon such
assignment, the Tenant shall be relieved of all liability accruing under this
lease after the effective date of such assignment, and the Landlord may
thereafter further assign this lease or sublet all or part of the Premises to
any party and the Tenant shall have no right to any proceeds derived from such
assignment or subletting. In no event shall the provisions of this paragraph (d)
relieve the Tenant of any obligations which accrued prior to the termination of
this lease or the assignment to the Landlord, as the case may be.

        (e) If the Landlord exercises the option set forth in paragraph (c)(ii)
above to terminate the lease with respect to the Affected Premises, then (i) the
term of this lease shall end and expire with respect to the Affected Premises on
the ninetieth (90th) day following the date of the Landlord's Notice and (ii)
the Tenant shall surrender the Affected Premises to the Landlord on such date,
in the same manner and condition as is required by this lease, as if such date
were the Expiration Date set forth in this lease and (iii) fixed rent and
additional rent with respect to the Affected Premises shall be apportioned as of
such Expiration Date and the Tenant's prospective rent obligations which are
based on square footage (including, without limitation, fixed rent and
additional rent payable pursuant to Article THIRTY of this lease) shall be
reduced accordingly, and (iv) at the Landlord's election, either the Landlord,
at the Tenant's expense, or the Tenant, at its own expense, shall erect the
partitioning required to separate the Affected Premises from the remainder of
the Premises, create any doors required to provide an independent means of
access to the Affected Premises from elevators and lavatories and segregate the
wiring and meters and electric current facilities, so that the Affected Premises
may be used as a unit for commercial purposes, separate from the remainder of
the Premises. If the remaining Premises contain the core lavatories, the
occupant of the Affected Premises shall have the right to use such lavatories in
common with the Tenant. If the Tenant performs such work, it shall commence such
work promptly upon receipt of Landlord's Notice and shall proceed to complete
such work in a diligent and workmanlike manner. Instead of terminating the lease
with respect to the Affected Premises, the Landlord may, at its option, elect to
have the Tenant assign all of its right, title and interest with respect to the
Affected Premises to the Landlord, such assignment to be effective as of the
date such lease termination would be effective and otherwise on the terms and
conditions set forth in this paragraph (e). Upon the assignment of the lease to
the Landlord with respect to the Affected Premises, the Landlord may further
assign the lease or sublet all or part of the Affected Premises to any party and
the Tenant shall have no right to any proceeds derived from such assignment or
subletting. In no event shall the provisions of this paragraph (e) relieve the
Tenant of any obligations with respect to the Affected Premises which accrued
with respect to the Affected Premises prior to the termination of the lease or
the assignment to the Landlord, as the case may be.

        (f) In the event the Landlord does not elect either of the alternatives
set forth in paragraph (c)(i) or (ii) above, or in the event the Landlord fails
to timely deliver the Landlord's Notice, the

                                      (16)

<PAGE>

Landlord agrees not to unreasonably withhold or delay its consent to any
proposed assignment or subletting, provided, however, that (i) the Landlord may
withhold its consent to a subletting of the Ground Floor Space for any or no
reason, and (ii) the Landlord shall have the right to condition its consent to
any proposed assignment or sublease on the following:

        (1)     No Event of Default shall have theretofore occurred and be
        continuing under this lease beyond any applicable notice or cure period.

        (2)     The Tenant shall have delivered to the Landlord the Tenant's
        Notice as required by paragraph (b) above.

        (3)     With respect to a sublease, the Tenant shall collaterally assign
        to the Landlord, and grant the Landlord a security interest in, the
        sublease and the rents payable thereunder and shall take all necessary
        steps required to perfect such assignment and security interest.

        (4)     The sublease shall include provisions to the effect that (i) if
        the Landlord shall notify the sublessee that the Tenant is in default in
        the payment of rent or in the performance of its other obligations under
        this lease, the subtenant shall, if so requested by the Landlord, pay
        all rent and other amounts due under the sublease directly to the
        Landlord, (ii) notwithstanding any such payment by the subtenant
        directly to the Landlord, the term of the sublease shall terminate
        simultaneously with the termination of the term of this lease and the
        subtenant shall surrender the subleased premises upon such termination,
        (iii) the sublease shall be subject and subordinate to this lease and to
        all matters to which this lease is or shall be subordinate, and (iv) any
        act or omission by the subtenant which, if performed by the Tenant would
        constitute an Event of Default under the lease, shall also constitute an
        Event of Default under the sublease provided notice thereof shall have
        been provided to the Tenant named herein.

        (5)     The proposed subtenant or assignee shall have a financial
        standing, be of a character, be engaged in a business, and propose to
        use the Premises in a manner, which in the Landlord's reasonable
        judgment, is in keeping with the Landlord's standards in such respect of
        the other office tenancies in the building. The parties acknowledge that
        the Landlord, as a religious institution, may have special
        considerations in determining if the business or proposed use of a
        proposed subtenant or assignee is objectionable, and the parties agree
        that the Landlord's judgment in such matters shall be conclusive.

        (6)     The proposed assignee or subtenant shall not then be a tenant,
        subtenant or assignee of any space in the building or any other building
        then owned, directly or indirectly, by the Landlord, provided that
        Landlord then has comparable space available in any of its buildings,
        nor shall the proposed subtenant or assignee be a person or entity with
        whom the Landlord is then negotiating to lease space in the building or
        any other building then owned, directly or indirectly, by the Landlord.

        (7)     The Premises shall not, without the Landlord's prior consent,
        have been publicly advertised (but may be listed with brokers) for
        subletting at a rental rate less than the prevailing asking rental rate
        then set by the Landlord for comparable space in the building, and if no
        comparable space is then available, at the prevailing rental rate set by
        the Landlord.

        (8)     The character of the business to be conducted or the proposed
        use of the Premises by the proposed assignee or subtenant shall not (i)
        be likely to increase the Landlord's operating expenses beyond that
        which would be incurred for use by the Tenant or for use in accordance
        with the standards of use of other tenancies in the building, (ii)
        materially increase the burden on elevators over the burden prior to
        such proposed assignment or subletting, (iii) unreasonably interfere
        with the use and enjoyment by other tenants in the building of their
        premises, or (iv) violate or be

                                      (17)

<PAGE>

        likely to violate any provisions or restrictions contained herein
        relating to the use or occupancy of the Premises.

        (9)     Any proposed sublease shall provide that in the event of the
        termination of this lease, or the re-entry or dispossession of the
        Tenant by the Landlord under this lease, such subtenant shall, at the
        Landlord's option, attorn to the Landlord as its sublessor pursuant to
        the then applicable terms of such sublease for the remaining term
        thereof, except that the Landlord shall not be (i) liable for any
        previous act or omission of Tenant as sublessor under such sublease,
        (ii) subject to any offset which theretofore accrued to such subtenant
        against the Tenant, (iii) bound by any modification of such sublease not
        consented to in writing by the Landlord or by any prepayment of rent
        more than one month in advance, (iv) bound to return such subtenant's
        security deposit until it has come into its actual possession and the
        subtenant would be entitled to its return pursuant to the terms of the
        sublease, and (v) bound by any obligation to make any payment to any
        subtenant or perform any work in the Premises.

        (10)    The proposed assignee or subtenant is not entitled, directly or
        indirectly, to diplomatic or sovereign immunity, and/or is subject to
        the service or process in, and the jurisdiction of the courts of New
        York.

        (11)    At any time during the term of the lease, there shall be no more
        than three (3) occupants in the Premises on any floor where Tenant has
        leased half or more than half of the rentable area of such floor, or two
        (2) occupants in the Premises on any floor where Tenant has leased less
        than half the rentable area of such floor, in both such cases,
        "occupants" includes Tenant if Tenant is actually occupying any portion
        of such floor.

        (12)    The subletting shall end no later than one (1) day before the
        Expiration Date and shall be for a term of no less than two (2) years,
        unless it commences less than two (2) years before the Expiration Date
        of the term.

        (13)    Intentionally omitted.

        (14)    The assignee shall assume, in writing, all obligations of the
        Tenant under this lease from and after the date of such assignment.

        (15)    A fully executed counterpart of the assignment or sublease shall
        be delivered to the Landlord within five (5) days after execution
        thereof.

        (g) In the event the Landlord waives its rights set forth in paragraph
(c) (i) and (ii) above, or consents to any assignment or subletting pursuant to
this Article SEVENTEEN, and the Tenant fails to execute and deliver an
assignment or sublease document, as approved by the Landlord, within six (6)
months after the date of Landlord's Notice, then the Tenant shall again comply
with all of the requirements of this Article SEVENTEEN before assigning its
interest in this lease, or subletting all or part of the Premises, respectively.

        (h) The Tenant shall pay all of the reasonable Landlord's costs
(including, without limitation, attorneys' fees and expenses) related to the
Landlord's review of a proposed sublease or assignment and the preparation,
review and approval of any assignment of rents, financing statement and other
documents related to such sublease or assignment, irrespective of whether
consent is granted or the transaction is ultimately consummated. The Tenant
shall also pay the cost of recording or filing any assignment of rents and
financing statements.

        (i) Provided no Event of Default shall have theretofore occurred and be
continuing under this lease beyond any applicable notice or cure period, the
Tenant named herein is authorized to (1) assign the lease to any entity
succeeding to the business and assets of the Tenant, whether by way of merger or
consolidation or by way of acquisition of all or substantially all of the assets
of the Tenant, provided that the acquiring entity shall have assumed in writing
the Tenant's obligations

                                      (18)

<PAGE>

under this lease; or (2) to sublease all or a portion of the Premises or assign
the lease to an entity which shall (x) control, (y) be under the control of, or
(z) be under common control with the Tenant (an entity described in (x), (y) or
(z) being a "Related Entity"). "Control" shall mean direct or indirect ownership
of more than fifty percent (50%) of each class of stock which is authorized to
vote of a corporation or other majority equity and control interest if not a
corporation, or the possession, directly or indirectly, of power to direct or
cause the direction of the management and policy of such corporation or other
entity, whether through the ownership of voting securities, by statute or
according to the provisions of a contract. Upon making a sublease or assignment
to any Related Entity, the Tenant shall notify the Landlord and certify to the
Landlord the manner in which such Related Entity is related to the Tenant and
the purposes for which the Premises will be used. Any subletting or assignment
described in this paragraph (i) shall be on notice to Landlord but shall not
require the prior written consent of the Landlord and may only be made on the
condition that (a) the subtenant or assignee shall continue to use the Premises
for the uses permitted herein, and (ii) the principal purpose of such sublease
or assignment is not the acquisition of the Tenant's interest in this lease, or
to circumvent the provisions of paragraph (a) of this Article SEVENTEEN. In the
event of an assignment pursuant to the provisions of clause (1) of this
paragraph (i), the successor entity, after giving effect to such merger,
consolidation or acquisition, shall have a tangible net worth, exclusive of good
will, computed in accordance with generally accepted accounting principles ("Net
Worth") at least equal to the Net Worth of the Tenant as of the date of this
lease. The provisions of paragraph (c) of this Article and the provisions of
paragraph (k) of this Article shall not apply to a subleasing or assignment made
pursuant to the provisions of this paragraph (i).

        (j) For purposes of this Article SEVENTEEN, an "assignment" shall be
deemed to include, whether occurring at one time or over a period of time
through a series of transfers, a sale or transfer of fifty (50%) percent or more
of beneficial interest in the Tenant (whether stock, partnership or otherwise),
or of any guarantor of the Tenant's obligations under this lease, or the
issuance of additional stock where the issuance of such additional stock will
result in a change of "control" (as defined in paragraph (i)) in the Tenant or
guarantor, if applicable. The transfer of shares or issuance of additional stock
of the Tenant or any guarantor for purposes of this Article SEVENTEEN shall not
include the sale of shares by persons other than those deemed "insiders" within
the meaning of the Securities and Exchange Act of 1934, as amended, which sale
is effected through the "over-the-counter market" or through any nationally
recognized exchange.

        (k) In the event the Landlord, in its sole discretion, authorizes the
Tenant to assign the lease or to sublet all or a portion of the Premises (other
than an assignment or subleasing authorized by paragraph (i) above), the Tenant
named herein shall pay to the Landlord, monthly, as additional rent, 50% of all
Tenant's Profit. "Tenant's Profit" shall mean all consideration received by the
Tenant (other than rental or consideration received by the Tenant under a
sublease or assignment entered into pursuant to paragraph (i) of this Article),
less (i) the rent, payable by the Tenant under this lease for the period in
question (exclusive of any amount payable by the Tenant under this subparagraph
(k)), such rent to be pro-rated if less than all of the Premises are sublet,
(ii) any brokerage commissions (not exceeding 110% of those set forth in
Landlord's brokerage commission schedule as published from time to time) and
reasonable legal fees paid by the Tenant in connection with such subletting or
assignment, (iii) any sums payable by the Tenant to the Landlord pursuant to the
provisions of paragraph (h) of this Article, (iv) any payments made by the
Tenant in connection with the assignment of its interest in this lease pursuant
to Article 31-B of the Tax Law of the State of New York or any real property
transfer tax of the United States or the City or State of New York (other than
income taxes), (v) free rent granted to the assignee or subtenant, and (vi) the
cost of work or alterations or payment therefor to separate the subleased space
from the balance of the Premises or to prepare the Affected Premises for the
assignee's or subtenant's occupancy. In the case of a sublease, the expenses set
forth in (ii) and (iii) shall be amortized on a straight-line basis over the
term of the sublease. In the case of an assignment, if the consideration to be
paid to the Tenant shall be paid in installments, the expenses set forth in (ii)
through (iv) shall be amortized over the period during which the installments
are to be paid.

        (1) No consent given by the Landlord shall be deemed to permit any act
except the act to which it specifically refers, or to render unnecessary any
subsequent consent, and any assignment or subletting of the Premises shall not
relieve the Tenant or any mesne assignee from any obligations, duty or covenant
under this lease. No assignment, transfer, mortgage, encumbrance,

                                      (19)

<PAGE>

subletting or arrangement in respect of the occupancy of the Premises shall
create any right in the assignee, transferee, mortgagee, subtenant or occupant,
unless the consent of the Landlord shall first have been obtained, in accordance
with the provisions of this Article SEVENTEEN (except as provided in paragraph
(i) above). Any assignee by accepting an assignment shall nevertheless be
conclusively deemed to have assumed this lease and all obligations already
accrued or to accrue thereunder and further to have agreed to fully and duly
perform all the Tenant's covenants herein contained. If the Tenant shall, at any
time, be in default in the payment of rent, the Landlord shall have the right to
collect rent from any assignee or subtenant, and credit the same to the account
of the Tenant, and no such collection shall constitute a waiver of the foregoing
covenant or the acceptance of anyone other than the Tenant, as tenant, or shall
otherwise release, impair or otherwise affect any obligation of the Tenant under
this lease.

        (m) The Tenant shall remain fully liable for the performance of all of
the Tenant's obligations hereunder notwithstanding anything provided for herein,
and without limiting the generality of the foregoing, shall remain fully
responsible and liable to the Landlord for all acts and omissions of any
subtenant or assignee or anyone claiming under or through any such person which
shall be in violation of any of the obligations of this lease and any such
violation shall be deemed to be a violation by the Tenant. Provided that the
Tenant named herein shall have provided Landlord with an address for notices, if
such address is different from the Premises, Landlord shall send copies of any
default notices given to an assignee or subtenant to the Tenant named herein,
and the Tenant named herein shall have the same cure period with respect to such
default as provided herein with respect to Tenant's own defaults. Landlord may
not terminate this lease for a default of an assignee or subtenant until the
Tenant named herein is given copies of such default notices and the cure period
to cure such default shall have expired. Upon any termination of this lease, it
is expressly agreed that the Tenant shall deliver to the Landlord all subleases,
security deposits (including interest), contracts, documents, rent rolls and
other records used in the operation of the Premises and, unless the sublease
shall have previously terminated and the security deposit returned to subtenant
or applied as provided by the sublease, all security deposits held by the
Tenant.

        (n) With respect to any present or future subleases, the Tenant shall
not accept prepayment of rent prior to its due date in excess of one month (but
the provisions of the foregoing shall not prohibit the Tenant from collecting
from any subtenant a security deposit provided such security deposit is
delineated in the sublease as being not advance rent, but security, returnable
to the subtenant after the termination of the term of the sublease). The Tenant
agrees to indemnify and save the Landlord harmless from and against any claim or
lien against the Landlord or the Premises for the return of any security under
any subleases with a subtenant which was not previously delivered to the
Landlord and agrees further that all subleases hereafter made with subtenants
shall provide that the lease security deposited by the subtenant shall not be a
lien or claim against the interest of the Landlord.

        (o) (i) If the Tenant assumes this lease and proposes to assign the same
pursuant to the provisions of 11 U.S.C. Section 101 et. seq (the "Bankruptcy
Code") to any person or entity who shall have made a bona fide offer to accept
an assignment of this lease on terms acceptable to the Tenant, then notice of
such proposed assignment shall be given to the Landlord by the Tenant no later
than twenty (20) days after receipt by the Tenant of such bona fide offer, but
in any event no later than ten (10) days prior to the date that the Tenant shall
make application to a court of competent jurisdiction for authority and approval
to enter into such assignment and assumption. Such notice shall set forth (x)
the name and address of such person, (y) all of the terms and conditions of such
offer, and (z) adequate assurance of future performance by such person under
this lease, including, without limitation, the assurance referred to in Section
365 (b)(3) of the Bankruptcy Code. The Landlord shall have the prior right and
option, to be exercised by notice to the Tenant given at any time prior to the
effective date of such proposed assignment, to accept an assignment of this
lease upon the same terms and conditions and for the same consideration, if any,
as the bona fide offer made by such person, less any brokerage commission which
would be payable in connection with such assignment.

        (ii) The term "adequate assurance of future performance" as used in this
lease shall mean that any proposed assignee shall, among other things: (a)
deposit with the Landlord on the assumption of this lease an amount equal to the
then-fixed rent and additional rent as security for

                                      (20)

<PAGE>

the faithful performance and observance by such assignee of the terms and
obligations of this lease, which sum shall be held in accordance with the
provisions of Article TWENTY-NINE hereof; (b) furnish the Landlord with
financial statements of such assignee for the prior three (3) fiscal years, as
finally determined after an audit and certified as correct by a certified public
accountant, which financial statements shall show a Net Worth of at least two
(2) times the Net Worth of the Tenant named herein as of the date of this lease
for each of such three (3) years; (c) grant to the Landlord a security interest
in such property of the proposed assignee as the Landlord shall deem necessary
to secure such assignee's future performance under this lease; and (d) provide
such other information or take such action as the Landlord, in its reasonable
judgment, shall determine is necessary to provide adequate assurance of the
performance by such assignee of its obligations under this lease.

        (p) Notwithstanding anything to the contrary contained herein, no
assignment or subletting by the Tenant, nor any other transfer or vesting of the
Tenant's interest hereunder (whether by merger, operation of law or otherwise),
shall be permitted if the proposed assignment or sublease (i) provides for a
rental or other payment for the leasing, use, occupancy or utilization of all or
any part of the Premises based, in whole or in part, on the income or profits
derived by any person from the property so leased, used, occupied or utilized
other than an amount based on a fixed percentage or percentages of gross
receipts or sales or (ii) does not provide that such assignee or subtenant shall
not enter into any lease, sublease, license, concession or other agreement for
the use, occupancy or utilization of all or any portion of the Premises which
provides for a rental or other payment for such use, occupancy or utilization
based, in whole or in part, on the income or profits derived by any person from
the property so leased, used, occupied or utilized other than an amount based on
a fixed percentage or percentages of gross receipts or sales.

                                ARTICLE EIGHTEEN
                   WAIVER AND SURRENDER; REMEDIES CUMULATIVE

        No consent or waiver of any provision hereof or acceptance of any
surrender shall be implied from any act or forbearance by the Landlord. No
agreement purporting to accept a surrender of this lease, or to modify, alter,
amend or waive any term or provision thereof, shall have any effect or validity
whatever, unless the same shall be in writing, and executed by the Landlord and
by the Tenant (or, in the case of a waiver, by the party waiving such term or
provision), and be duly delivered, nor shall the delivery of any keys to anyone
have any legal effect, any rule or provision of law to the contrary
notwithstanding. Any consent, waiver or acceptance of surrender, in writing, and
properly executed and delivered as aforesaid, shall be limited to the special
instance for which it is given, and no superintendent or employee, other than an
officer of the Landlord or of its managing agent, and no renting representative
shall have any authority to accept a surrender of the Premises, or to make any
agreement or modification of this lease, or any of the terms and provisions
hereof. No provision of any lease made by the Landlord to any other tenant of
the building shall be taken into consideration in any manner whatever in
determining the rights of the Tenant herein. No payment by the Tenant or receipt
by the Landlord of a lesser amount than the monthly rent herein stipulated shall
be deemed to be other than on account of the stipulated rent, nor shall any
endorsement on any check, nor any letter accompanying any such payment of rent
be deemed an accord and satisfaction (unless an agreement to accept a lesser
amount be signed by the Landlord), but the Landlord may accept such payment
without prejudice to the Landlord's full right to recover the balance of such
rent and to institute summary proceedings therefor. If the Tenant is in arrears
in the payment of fixed rent or additional rent or any other sum which may
become payable under this lease, the Tenant waives its right, if any, to
designate the items in arrears against which any payments made by Tenant are to
be credited and Landlord may apply any of such payments to any such items in
arrears as the Landlord, in its sole discretion, shall determine, irrespective
of any such designation or request by the Tenant as to the items against which
any such payments shall be credited. The receipt by the Landlord of any fixed
rent, or additional rent or of any other sum of money which may be payable under
this lease, or of any portion thereof, shall not be deemed a waiver of the right
of the Landlord to enforce the payment of any sum of any kind previously due or
which may thereafter become due under this lease, or of the right to forfeit
this lease by such remedies as may be appropriate, or to terminate this lease or
to exercise any of the rights and remedies reserved to the Landlord hereunder,
and the failure of the Landlord to enforce any covenant or condition (although
the Tenant shall have repeatedly or continuously broken the same

                                      (21)

<PAGE>

without objection from the Landlord) shall not estop the Landlord at any time
from taking any action with respect to such breach which may be authorized by
this lease, or by law, or from enforcing said covenant or any other covenant or
condition on the occasion of any subsequent breach or default. The various
rights, remedies, powers and elections of the Landlord, as provided in this
lease or created by law, are cumulative, and none of them shall be deemed to be
exclusive of the others, or of such other rights, remedies, powers or elections
as are now or may hereafter be conferred upon the Landlord by law or equity.

                                ARTICLE NINETEEN
                       NO REPRESENTATIONS AS TO PREMISES,
                        CERTIFICATE OF OCCUPANCY AND USE

        The Tenant represents to the Landlord that the Tenant has made, or
caused to be made, a careful inspection of the Premises and that the Tenant has
made an examination of the certificate of occupancy of the building and that the
area and present condition of the Premises are in all respects satisfactory to
the Tenant, except (if at all) as may herein otherwise be expressly stated in
the Work Sheet (Exhibit C) annexed hereto, and that the Tenant has determined
that the use of the Premises, as set forth in this lease, is consistent with the
uses permitted under the Certificate of Occupancy, if any. The Tenant
acknowledges that no representations or promises have been made by the Landlord
or the Landlord's agents with respect to the Premises or the building or the
Certificate of Occupancy thereof, except as in this lease set forth, and no
rights, easements or licenses are acquired by the Tenant except as expressly set
forth herein. The statements contained in this lease regarding the use of the
Premises by the Tenant shall not be deemed a representation or warranty by the
Landlord that such use is lawful or permitted by the Certificate of Occupancy of
the building.

                                 ARTICLE TWENTY
                       LIMITATION OF LANDLORD'S LIABILITY

        (a) The Tenant shall make no claim upon the Landlord for abatement of
rent, constructive eviction, rescission, or otherwise, and the Landlord shall be
exempt from all liability, except for injuries to the Tenant's person or
property which are due to the negligence of the Landlord, its agents, servants
or employees in the management of the Premises or the real property of which the
Premises are a part, for or on account of any annoyance, inconvenience,
interference with business, or other damage, caused by: (i) any interruption,
malfunction or curtailment of the operation of the elevator service, heating
plant, sprinkler system, gas, water, sewer or steam supply, plumbing, machinery,
electric equipment or other appurtenances, facilities, equipment and
conveniences in the building, whether such interruption, malfunction or
curtailment be due to breakdowns, or repairs, or strikes or inability to obtain
electricity, fuel or water due to any such cause or any other cause beyond the
Landlord's control; (ii) any work of repair, alteration, renovation or
replacement done by or on behalf of the Landlord or any other tenant; (iii) any
water, rain, snow, steam, gas, electricity or other element, which may enter,
flow from or into the Premises or any part of the building, or any noise or
vibration audible in, or transmitted to the Premises; (iv) any vermin; (v) any
falling paint, plaster or cement; (vi) any interference with light or with other
easements or incorporeal hereditaments; (vii) any latent defect or deterioration
in the building or the appurtenances thereof, whether or not the Landlord shall
have been notified of any condition allegedly causing same; (viii) any zoning
ordinance or other acts of governmental or public authority now or hereafter in
force; and (ix) any act or omission of any other occupant of the building or
other person temporarily therein. The Tenant will not hold the Landlord liable
for any loss or theft of, or damage to, any property in the Premises done or
caused by any employee, servant, or agent of the Landlord who is invited into
the Premises by the Tenant for purposes outside the normal scope of such
employee's, servant's or agent's duties, nor for the loss, damage or theft of
any property stored or left in the basement or in any other part of the
building, which is not enclosed within the Premises or of any property, left
with any employee of the Landlord, notwithstanding such theft, loss or damage
may occur through carelessness or negligence of the Landlord's employees; and
the Tenant agrees that any employee in entering the Premises at the invitation
of the Tenant for purposes outside the normal scope of such employee's,
servant's or agent's duties or accepting custody of property shall be then
deemed agent of the Tenant or other person at whose instance he may be acting,
and not

                                      (22)

<PAGE>

agent of the Landlord. Employees are not permitted to receive or accept packages
or property for account of Tenants. The use of storerooms or storage space for
personal property (if provided) shall be at the Tenant's risk and the Tenant
will not hold the Landlord liable for any loss of or damage to person or
property therein or thereby. Nothing in this lease contained shall impose any
obligation upon the Landlord with respect to any real property other than the
building, whether said other real property be owned by the Landlord or
otherwise, or shall in any way limit the Landlord's right to build upon or
otherwise use said other real property in such manner as the Landlord may see
fit. The Tenant shall make no claim upon the Landlord for abatement of rent,
constructive eviction or rescission, and the Landlord shall have no liability by
reason of the Landlord's failure to enforce the provisions of the lease to any
other tenant against such other tenant.

        (b) Any right and authority reserved by and granted to the Landlord
under this lease, to enter upon and make repairs in the Premises shall not be
taken as obligating the Landlord to inspect and to repair the Premises and the
Landlord hereby assumes no responsibility or liability for the care, inspection,
maintenance, supervision, alteration or repair of the Premises except as herein
specifically provided. The Tenant assumes possession and control of the Premises
and exclusively the whole duty of care and repair thereof, except as herein
specifically provided, and the duty of care, if any, owed by the Tenant to the
persons on the sidewalks or in the corridors of the building.

        (c) The officers, directors, employees, partners, shareholders, and
principals, direct or indirect, comprising the Landlord (collectively, the
"Parties") shall not be liable for the performance of the Landlord's obligations
under this lease. The Tenant shall look solely to the Landlord to enforce the
Landlord's obligations under this lease and shall not seek any damages against
any of the Parties. The liability of the Landlord for the Landlord's obligations
under this lease shall be limited to Landlord's Equity in the building.
"Landlord's Equity" as used herein means the lesser of (i) the interest of the
Landlord in and to the building and (ii) the interest the Landlord would have in
the building if it were encumbered by an indebtedness held by a person not a
party to this lease in an amount equal to 75% of the then-current fair market
value of the building (as such value of such interest is determined in good
faith by the Landlord). The Tenant shall not look to any other property or
assets of the Landlord, other than Landlord's Equity, or the property or assets
of any of the Parties in seeking either to enforce the Landlord's obligations
under this lease or to satisfy a judgment for the Landlord's failure to perform
such obligations.

        (d) The term "Landlord" as used in this lease, means only the owner for
the time being of the Premises. If the Landlord shall hereafter sell, exchange
or lease the entire building or the land and building wherein the Premises are
located, or, being the lessee thereof, shall assign its lease, the grantee,
lessee, or assignee thereof, as the case may be, shall, without further
agreement by any party, be conclusively deemed to be the Landlord of this lease
and to have assumed and undertaken to carry out all of the obligations hereof on
the part of the Landlord to be performed, and the Tenant does hereby release the
above-named Landlord from any claim or liability arising or accruing hereunder
subsequent to such transfer of ownership or possession, for breach of the
covenant of quiet enjoyment, or otherwise.

        (e) If the lease provides that the Landlord's consent is not to be
unreasonably withheld or delayed, and it is the final order of any court having
jurisdiction thereof that the Landlord has been unreasonable, the only effect
shall be that the Landlord shall be deemed to have given such consent; but in no
event shall the Landlord be liable to the Tenant for any monetary damages by
reason of the withholding or delaying of its consent.

                               ARTICLE TWENTY-ONE
                              INDEMNITY BY TENANT

        The Tenant hereby indemnifies and agrees forever to save harmless the
Landlord against any and all liabilities, penalties, claims, damages, expenses
(including, without limitation, attorneys' fees whether in a proceeding between
the Landlord and the Tenant or between the Landlord and any third party) or
judgments, arising from injury to person or property of any kind, occasioned
wholly or in part by the Tenant's failure to perform or abide by any of the
covenants of this lease or occasioned wholly or in part by any act or acts,
omission or omissions of the Tenant, or of the employees, customers, agents,
assigns, invitees or licensees or under-tenants of the Tenant, or based on any

                                      (23)

<PAGE>

matter or thing growing out of the Tenant's use or occupation of the Premises or
any part of the building. The Tenant shall not do or permit any act or thing to
be done upon the Premises which may subject the Landlord to any liability or
responsibility for injury, damages to persons or property or to any liability by
reason of any violations of any requirements of law with which the Tenant is
obligated to comply under this lease, and the Tenant shall exercise such control
over the Premises as to protect the Landlord against any such liability. In case
any claim, action or proceeding is made or brought against the Landlord by
reason of any such claim, the Tenant, upon written notice from the Landlord,
shall, at the Tenant's sole cost and expense, resist or defend such action or
proceeding by counsel approved by the Landlord in writing. The Landlord agrees
that counsel for the Tenant's insurance carrier shall be deemed satisfactory. If
the damages sought by the party asserting such claim exceed the limits of the
Tenant's insurance coverage, the Landlord shall be entitled to have its own
counsel participate with the Tenant's counsel in resisting or defending such
action and the Tenant shall reimburse the Landlord for any reasonable cost it
incurs in connection therewith. The provisions of this Article TWENTY-ONE shall
survive the expiration or sooner termination of this Lease.

                               ARTICLE TWENTY-TWO
                                     NOTICES

        Any notice which is to be given by either party to the other pursuant to
this lease shall be in writing and shall be given as follows: (a) if such notice
is to be given by the Landlord to the Tenant, such notice may be given
personally by delivering the same to the Tenant, or if the Tenant be a
corporation or partnership, to any officer, partner or other employee of the
Tenant, at the Premises or at any other place, or by registered or certified
mail, postage prepaid, return receipt requested, or by nationally recognized
overnight service providing evidence of delivery, addressed to the Tenant at its
address given in this lease or at the Premises, or such other address as the
Tenant shall hereafter designate in writing, provided, however, that notices of
default may not be given solely by personal delivery, but shall be given by mail
or overnight service as set forth above, with a copy of such default notice sent
to Marshall J. Cohen, Esq., Stadtmauer Bailkin LLP, 850 Third Avenue, New York,
NY 10022; (b) if such notice is to be given by the Tenant to the Landlord, such
notice shall be given by registered or certified mail, postage prepaid, return
receipt requested, or by nationally recognized overnight service providing
evidence of delivery, addressed to the Landlord at 74 Trinity Place, New York,
New York, 10006, Attention: Director of Commercial Real Estate Leasing, or at
such other address as the Landlord shall hereafter designate in writing. Notices
given by overnight service shall be specified for next business day delivery.
Any notice shall be deemed to have been given on the date when same shall have
been delivered, in the case of personal delivery, or two days after the same
shall have been properly mailed in the case of certified or registered mail, or
on the first following business day if sent by overnight mail service. The
attorneys for either party shall have the right, but not the obligation, to send
notices on behalf of their respective clients. Notwithstanding the foregoing,
all bills may be sent directly to the Tenant by regular mail.

                              ARTICLE TWENTY-THREE
                                   INSOLVENCY

        (a) Each of the following shall be a "Bankruptcy Event" hereunder:

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

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

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

                                      (24)

<PAGE>

        (4) if any case, proceeding or other action shall be commenced against
        or instituted against the Tenant (i) seeking an order for relief entered
        against the debtor or to adjudicate it a bankrupt or insolvent, or
        seeking reorganization, arrangement, adjustment, winding-up,
        liquidation, dissolution, composition or other relief with respect to
        its debts under any existing or future law of any jurisdiction, domestic
        or foreign, relating to bankruptcy, insolvency, reorganization or relief
        of debtors, or (ii) seeking appointment of a receiver, trustee,
        custodian or other similar official for it or for all or any substantial
        part of its property, which in either case (x) results in the entry of
        any order for relief, adjudication of bankruptcy or insolvency, or such
        an appointment or the issuance or entry of any other order having a
        similar effect or (y) remains undismissed for a period of sixty (60)
        days; or

        (5) if any case, proceeding or other action shall be commenced or
        instituted against the Tenant seeking issuance of a warrant of
        attachment, execution, distraint or similar process against all or any
        substantial part of the Tenant's property which results in the entry of
        an order for such relief which is not vacated, discharged, or stayed or
        bonded pending appeal within sixty (60) days from the entry thereof; or

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

        (7) if a trustee, receiver or other custodian is appointed for any
        substantial part of the assets of the Tenant and such appointment is not
        vacated or stayed within seven days.

        (b) If at any time (i) the Tenant shall be comprised of two or more
people; or (ii) the Tenant's obligations under this lease have been guaranteed
by any party other than the Tenant, or (iii) the Tenant's interest in this lease
has been assigned, the word "Tenant" as used in this Article TWENTY-THREE shall
be deemed to mean any one or more of the persons primarily or secondarily liable
for the Tenant's obligations under this lease. Any moneys received by the
Landlord from or on behalf of the Tenant during the pendency of any Bankruptcy
Event shall be deemed paid as compensation for the use and occupation of the
Premises and the acceptance of any such compensation by the Landlord shall not
be deemed an acceptance of rent or a waiver by the Landlord of any rights under
Articles TWENTY-THREE or TWENTY-FIVE.

        (c) If a Bankruptcy Event occurs at any time after the execution and
delivery of this lease, whether such event occurs prior or subsequent to the
Commencement Date or the Tenant's entry into possession, such an event shall be
deemed an Event of Default and the Landlord shall have the right to terminate
this lease in the manner hereinafter provided. In the event of such termination,
the Tenant or any person claiming under, by or through the Tenant, by virtue of
any statute or of an order of any court, shall not be entitled to possession or
to remain in possession of the Premises but shall forthwith quit and surrender
same. Exclusive of and in addition to any other rights or remedies the Landlord
may have through any other portion or provision of this lease or by virtue of
any rule of law or statute, said Landlord may keep and retain, as damages, any
rent, security, deposit or other moneys or consideration received by the
Landlord from the Tenant, or others on behalf of the Tenant. Also, in the event
of termination of this lease as aforesaid, the Landlord shall be entitled, as
and for liquidated damages, and not as a penalty, from the Tenant for breach of
the unexpired term of this lease, to a sum equal to the amount by which the rent
for the period of the unexpired portion of the lease term exceeds the then fair
and reasonable rental value for the same period, both discounted to present
value at six percent (6%). If at any time within a reasonable period following
the date of the termination of the lease, as aforesaid, the Premises should be
re-rented by the Landlord, the rent realized by any re-letting shall be deemed
prima facie to be the rental value. In the event of the occurrence of any
Bankruptcy Event occasioned solely through the invocation by the Tenant or by
third parties of the laws of the State of New York, judicial or statutory, as
distinguished from the invocation of Federal laws relating to bankruptcy,
reorganization, or otherwise, the Landlord, in addition to the foregoing, may
accelerate the full amount of rent reserved for the remainder of the lease,
discounted to present value at 6%, and the same shall forthwith become due and
payable to the Landlord. Nothing herein provided shall be deemed to prevent or
restrict the Landlord from proving and receiving as damages herein the maximum
permitted by any

                                      (25)

<PAGE>

rule of law or statute prevailing when such damages are to be proved, whether
they be greater or less than those referred to above.

                               ARTICLE TWENTY-FOUR
                            REMEDIES OF THE LANDLORD
                     ON DEFAULT IN PERFORMANCE BY THE TENANT

        (a) If the Tenant shall default in the full and due performance of any
covenant of this lease, the Landlord shall have the right, upon ten (10) days'
notice to the Tenant (except in an emergency or unless a shorter period of
notice or provision for the performance of such work without notice is elsewhere
established), to perform the same for the account of the Tenant, and in such
event all workman employed by the Landlord shall be deemed the agents of the
Tenant, and any reasonable payment made, and expense incurred, by the Landlord
in this connection, shall become due and payable by the Tenant to the Landlord
within fifteen (15) days after receipt of invoices for same. If the Landlord is
compelled to incur any expenses or incur any obligation for the payment of
money, including, without limitation, reasonable attorneys' fees in instituting,
prosecuting or defending any action or proceeding instituted by the Tenant or
any third party by reason of any Event of Default hereunder, the sum or sums so
paid by the Landlord with all interest, costs and damages, shall be deemed
immediately due to the Landlord upon demand as additional rent. Any and all sums
payable by the Tenant to the Landlord shall bear interest at the lesser of (x)
one and one-half per cent (l 1/2%) per month or (y) the maximum rate permitted
by applicable law from the due date to the date of actual payment, and any and
all such sums (except the fixed rent hereinabove expressly reserved) shall be
deemed to be additional rent for the period prior to such due date, and the
Landlord shall have the same remedies for default in the payment of such
additional rent as for default in the payment of the rent expressly reserved. If
the Tenant's term shall have expired at the time of the making of such
expenditures or incurring such obligations, such sums shall be recoverable by
the Landlord as damages.

        (b) In the event that under the provisions of this lease the Landlord
shall have the privilege of performing any covenant in respect of which the
Tenant may be in default and of recovering the expenses so involved from the
Tenant as additional rent or otherwise, such remedy shall not be the exclusive
remedy of the Landlord but the Landlord may, at its option, treat such default
as a breach of substantial obligation of this lease and shall have all the other
remedies in respect thereof provided in this or any other Article of this lease.

                               ARTICLE TWENTY-FIVE
                                    DEFAULT

        (a) Each of the following events shall be an "Event of Default"
hereunder:

        (1) if the Tenant shall default in the payment when due of any
        installment of fixed rent or any item of additional rent when same shall
        be due and such default shall continue for a period of five business
        days after notice to Tenant; provided, however, that if Landlord shall
        give such notice two or more times in any twelve-month period, Tenant
        shall not thereafter be entitled to any such notice; or

        (2) if the Tenant shall default in the observance or performance of any
        term, covenant or condition of any other lease with the Landlord or the
        Landlord's predecessor in interest beyond the expiration of any grace
        period set forth in such other lease; or

        (3) if the Premises shall be abandoned or deserted; or

        (4) if a Bankruptcy Event shall occur; or

        (5) if the conduct of the Tenant or any of its employees, agents or
        visitors or any occupant of the Premises shall reasonably be deemed
        objectionable by the Landlord or the Landlord's managing agent; or

                                      (26)

<PAGE>

        (6) if the Tenant's interest or any portion thereof in this lease shall
        devolve upon or pass to any person, whether by operation of law or
        otherwise, except as expressly permitted by Article SEVENTEEN hereof; or

        (7) if the lease is assigned, or all or part of the Premises are sublet
        to a Related Entity and such Related Entity shall no longer (x) control,
        (y) be under the control of, or (z) be under common control with the
        Tenant (except for a permitted successor by merger, consolidation or
        purchase as may be permitted by Article SEVENTEEN) and such Related
        Entity has not vacated or been approved by Landlord within six months
        following the date on which it ceases to be a Related Entity; or

        (8) if the Tenant's obligations under this lease have been guaranteed by
        any party and if the guarantor shall default in the observance or
        performance of any of the terms of the guaranty or if the guarantor
        shall repudiate the guaranty, or if the guaranty shall terminate or be
        terminated for any reason without the prior written consent of the
        Landlord or in accordance with the terms thereof; or

        (9) if the Tenant shall default in the observance or performance of any
        other term, covenant or condition of this lease and the Tenant shall
        fail to remedy such default within thirty (30) days after notice from
        the Landlord to the Tenant of such default, except that if the default
        is of such a nature that it cannot with due diligence by remedied within
        such thirty-day period, the Tenant shall not be in default if the Tenant
        shall commence within said thirty-day period and thereafter diligently
        proceed to complete all steps necessary to remedy such default, and
        further, so long as the extension of such cure period shall not (i)
        subject the Landlord or any superior lessor or mortgagee to prosecution
        for a crime or any other fine or charge, (ii) subject the Premises, the
        building or the land upon which the building is located to being
        condemned or vacated, (iii) subject the land or the building to any lien
        or encumbrance, or (iv) result in the termination of any superior lease
        or mortgage.

        (b) If an Event of Default shall occur, the Landlord may, at any time
thereafter and at its option, give the Tenant ten (10) days written notice of
its intention to terminate this lease, and in such event, on the tenth day
following the giving of such notice, this lease and the term and all rights of
the Tenant under this lease shall expire and terminate as if that were the
Expiration Date and the Tenant shall immediately quit and surrender the
Premises, but the Tenant shall nonetheless be liable for all of its obligations
hereunder, as provided for in Article TWENTY-SIX.

        (c) Notwithstanding the foregoing, if such termination is stayed by
order of any court having jurisdiction over any proceeding which constitutes a
Bankruptcy Event, or by federal or state statute, then, following the expiration
of any such stay, or if the trustee appointed in any such proceeding, the Tenant
or the Tenant as debtor-in-possession shall fail to assume the Tenant's
obligations under this lease within the period provided therefor by law or
within one hundred twenty (120) days after entry of the order for relief or as
may be allowed by the court, or if the trustee, the Tenant or the Tenant as
debtor-in-possession shall fail to provide adequate assurance of the complete
and continuous future performance of the Tenant's obligations under this lease
as provided in Article SEVENTEEN (o), the Landlord, to the extent permitted by
law or by leave of the court having jurisdiction over the proceeding
constituting the Bankruptcy Event, shall have the right, as its election, to
terminate this lease on five (5) days' notice to the Tenant, the Tenant as
debtor-in-possession or said trustee and upon the expiration of said five (5)
day period this lease shall cease and expire as aforesaid the Tenant, the Tenant
as debtor-in-possession or said trustee shall immediately quit and surrender the
Premises as aforesaid.

        (d) If an Event of Default described in clause (a)(1) shall occur, or if
this lease shall be terminated in accordance with the provisions of clauses (b)
and (c) above, the Landlord, without notice, may reenter and repossess the
Premises using such force for that purpose as may be necessary without being
liable to indictment, prosecution or damages therefor and may dispossess the
Tenant by summary proceedings or otherwise.

                                      (27)

<PAGE>

        (e) If an Event of Default shall occur prior to the date fixed as the
commencement of any renewal or extension of this lease, and shall remain uncured
as of such date, the Landlord may cancel and terminate such right of renewal or
extension by written notice to the Tenant.

                               ARTICLE TWENTY-SIX
                              REMEDIES AND DAMAGES

        (a) If an Event of Default shall occur and if this lease shall be
terminated as provided in Article TWENTY-FIVE:

        (i) The Landlord and its agents may immediately, or at any time
        thereafter, re-enter the Premises and remove all persons and property
        therefrom, either by summary dispossess proceedings, or by any suitable
        action or proceeding at law, or by force or otherwise, without being
        liable to indictment, prosecution or damages therefor, and repossess and
        enjoy the Premises, together with all additions, alterations,
        installations and improvements, and no entry by the Landlord shall be
        deemed an acceptance of surrender.

        (ii) The Landlord may, at its option, re-let the Premises in whole or in
        part, for such term or terms and for such rentals and upon such other
        conditions, which may include concessions and free rent periods as the
        Landlord, in its sole discretion, determine, even though the same may
        extend beyond the Expiration Date. The Landlord shall have no liability
        to the Tenant to re-let the Premises and the failure or refusal of the
        Landlord to re-let the Premises or any part thereof, or if the Premises
        are re-let, the failure of the Landlord to collect the rent under such
        re-letting, shall not relieve the Tenant of any liability under this
        lease. The Landlord may, at its option, make such repairs, replacements,
        alterations, additions, improvements and other physical changes in and
        to the Premises as the Landlord, in its sole discretion, considers
        advisable or necessary in connection with any such re-letting. Any such
        re-letting shall, as the Landlord's option, be either for the Landlord's
        own account, or as the agent for the Tenant.

        (b) The Tenant, on its behalf and on behalf of all persons claiming
through or under the Tenant, including all creditors, hereby expressly waives
(i) any and all right to regain possession of the Premises or to reinstate or
redeem this lease under any present or future law; (ii) the service of any
notice demanding rent or stating an 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; and (iii) any and all rights of redemption and all other
rights to regain possession or to reinstate this lease, after (x) the Tenant
shall have been dispossessed by a judgment or by warrant of any court or judge,
or (y) any re-entry by the Landlord, or (z) any expiration or termination of
this lease, whether such dispossess, re-entry, expiration or termination shall
be by operation of law or pursuant to the provisions of this lease. Except as
otherwise provided by law, the Tenant and Landlord waive and will waive all
right to trial by jury in any summary proceedings and in any other proceeding or
action at law hereafter instituted by the Landlord against the Tenant in respect
of this lease, and also in any action or proceeding between the parties hereto
for any cause; and it is hereby agreed, that in any of such events, the matter
in dispute shall be tried before a judge without a jury. In the event the
Landlord shall commence any action or summary proceeding for non-payment of
rent, or other breach of any of the terms, covenants or conditions of this
lease, the Tenant agrees not to interpose any counterclaim of whatever nature or
description in any such action or proceeding, other than compulsory
counterclaims which would be deemed waived if not asserted by the Tenant. The
words "re-enter" and "re-entry" as used in this lease are not restricted to
their technical legal meaning. In the event of a breach or threatened breach by
the Tenant, or anyone claiming by, through or under the Tenant, of any of the
covenants or provisions hereof, the Landlord shall have the right to obtain an
injunction and the right to invoke any remedy allowed at law or in equity as if
re-entry, summary proceedings and other remedies were not herein provided for.
The remedies set forth herein are cumulative and the mention in this lease of
any remedy shall not preclude the Landlord from exercising any other remedy
allowed at law or in equity.

        (c) If this lease and the term shall expire as provided in Article
TWENTY-FIVE, or by or under any summary proceeding or any other action or
proceeding by the Landlord against the Tenant or any person claiming by, through
or under the Tenant, or if the Landlord shall re-enter the

                                      (28)

<PAGE>

Premises as provided in paragraph (a) above, or by or under any summary
proceeding or any other action or proceeding, then, in any of said events:

        (i) The Tenant shall pay to the Landlord all fixed rent and additional
        rent and other charges payable under this lease by the Tenant to the
        Landlord to the date upon which this lease and the term shall have
        expired or has been terminated by the Landlord;

        (ii) The Tenant shall also be liable for and shall pay to the Landlord,
        as liquidated damages, any deficiency (the "Deficiency") between the
        fixed rent and additional rent reserved in this lease for the period
        which would have constituted the unexpired portion of the term
        (including any renewal term exercised by the Tenant prior to the
        termination of this lease or re-entry by the Landlord, and in such case
        the additional rent for the renewal term shall be assumed to be the same
        as was payable for the year immediately preceding such termination or
        re-entry) and the net amount, if any, actually received by the Landlord
        from any re-letting of the Premises pursuant to paragraph (a)(ii) above.
        The Landlord shall be entitled to deduct from the rentals actually
        collected under any re-letting all of the expenses which Landlord
        incurred by reason of the Tenant's default and in connection with such
        re-entry and re-letting, including, but not limited to, all repossession
        costs, legal expenses, brokerage commissions, attorneys' fees, court
        costs and disbursements, the cost of repairs, re-decoration and
        alterations in preparing the Premises for re-letting, and the amount of
        rent concessions and work allowances and the like granted in connection
        with such re-letting. The Deficiency shall be paid in monthly
        installments by the Tenant on the days specified in this lease for
        payment of installments of fixed rent, and the Tenant shall not be
        entitled to withhold any such payment until the Expiration Date set
        forth in this Lease. The Landlord shall be entitled to recover from the
        Tenant each monthly Deficiency as the same arises, and no suit to
        collect the amount of the Deficiency for any month shall prejudice the
        Landlord's right to collect the Deficiency for any subsequent month by a
        similar proceeding.

        (iii) Whether or not the Landlord shall have collected any monthly
        Deficiency, the Landlord shall be entitled to recover from the Tenant,
        and the Tenant shall pay to the Landlord on demand, in lieu of any
        further Deficiency as and for liquidated and agreed final damages, and
        not as a penalty, a sum equal to the amount by which the rent for the
        period of the unexpired portion of the lease term (commencing on the
        date immediately succeeding the last day with respect to which a
        Deficiency payment, if any, was collected) exceeds the then fair and
        reasonable rental value of the Premises for the same period, both
        discounted to present value at six percent (6%). If, before presentation
        of proof of such liquidated damages to any court, the Premises, or any
        part thereof, shall have been relet by the Landlord for the period which
        would have constituted the unexpired portion of the term, or any part
        thereof, the amount of rent reserved upon such reletting shall be
        deemed, prima facie, to be the fair and reasonable rental value for the
        part or the whole of the Premises so relet.

        (d) The liability of the Tenant shall survive the issuance of a final
order and warrant of dispossess, and re-entry by the Landlord, and any other
termination of this lease as a result of an Event of Default, and the granting
by the Landlord of a new lease upon the Premises to another tenant, and the
Tenant hereby waives any defense which might be predicated upon any of said acts
or events. If the Premises are re-let together with any other space in the
building, the rental collected and the expenses incurred in connection with such
re-letting shall be apportioned as reasonably determined by the Landlord. In no
event shall the Tenant be entitled to receive any rents collected or payable
under any re-letting, whether or not such rents exceed the fixed rent reserved
under this lease. Nothing contained in Articles TWENTY-FIVE or TWENTY-SIX shall
be deemed to limit or preclude the recovery by the Landlord from the Tenant of
the maximum amount allowed to be obtained as damages by any statute or rule of
law, or of any sums or damages to which the Landlord may be entitled in addition
to the damages set forth in paragraph (c) above.

                              ARTICLE TWENTY-SEVEN
                            SURRENDER AT EXPIRATION

        Upon the expiration or any termination of the term of this lease, the
Tenant shall quit and surrender the Premises, together with any fixtures,
equipment or appurtenances installed in the

                                      (29)

<PAGE>

Premises at the commencement of this lease, and any alterations, decorations,
additions and improvements which are not to be removed in compliance with the
provisions of Article FOUR hereof, to the Landlord, in good order and condition,
ordinary wear excepted. The Tenant shall remove all its furnishings, trade
fixtures, stock in trade and like personal property in accord with the
requirements of Article FOUR, so as to leave the Premises broom-clean and in an
orderly condition. If the last day of the term of this lease falls on Saturday
or Sunday, this lease shall expire on the business day immediately preceding.
The Tenant's obligation to observe and perform this covenant shall survive the
expiration or other termination of the term of this lease. The Tenant expressly
waives, for itself and for any person claiming by, through or under the Tenant,
any rights which the Tenant or any such person may have under the provisions of
Section 2201 of the New York Civil Practice Law and Rules or any law of like
import then in force in connection with any holdover summary proceedings when
the Landlord may institute to enforce the provisions of this Article. The Tenant
acknowledges that possession of the Premises must be surrendered to the Landlord
on the Expiration Date. The parties recognize that the damage to the Landlord
resulting from any failure by the Tenant to timely surrender possession of the
Premises will be substantial, will exceed the amount of the monthly installments
of the fixed rent and additional rent payable hereunder and will be impossible
to accurately measure. The Tenant agrees that if possession of the Premises is
not delivered to the Landlord on the Expiration Date (or any sooner termination
date), in addition to any other rights or remedies the Landlord may have
hereunder or in equity or at law, and without in any manner limiting the
Landlord's right to demonstrate and collect any damages suffered by the
Landlord, the Tenant shall pay to the Landlord on account of use and occupancy
of the Premises for each month and for each portion of any month during which
the Tenant holds over in the Premises after the Expiration Date, (a) for the
first month following the Expiration Date, a sum equal to 125% of the aggregate
of the fixed rent and additional rent which was payable under this lease during
the last month of the term, (b) for the second month following the Expiration
Date, a sum equal to 150% of the aggregate of the fixed rent and additional rent
which was payable under this lease during the last month of the term, and (c)
for any month thereafter, a sum equal to 200% of the aggregate of the fixed rent
and additional rent which was payable under this lease during the last month of
the term, provided, however, that in no event shall the amount payable in any
month be less than the fair market value of the Premises. In addition, and
without in any manner limiting the Landlord's right to demonstrate and collect
any damages suffered by the Landlord and arising from the Tenant's failure to
surrender the Premises as provided herein, the Tenant shall indemnify and hold
the Landlord harmless from and against all cost, liability, damages and expenses
(including, without limitation, reasonable attorneys' fees and disbursements)
resulting from a delay of three months or more by the Tenant in so surrendering
the Premises, including, without limitation, any claims made by any succeeding
or prospective tenant as a result of such delay. Nothing herein contained shall
be deemed to permit the Tenant to retain possession of the Premises after the
Expiration Date (or sooner termination) of this lease or to limit in any manner
the Landlord's right to regain possession of the Premises through summary
proceedings, or otherwise, and no acceptance by the Landlord of payments from
the Tenant after the Expiration Date shall be deemed to be other than on account
of the amount to be paid by the Tenant in accordance with the provisions of this
Article. The provisions of this Article shall survive the expiration of the term
of this lease.

                              ARTICLE TWENTY-EIGHT
                                QUIET ENJOYMENT

        The Landlord covenants that, if the Tenant shall duly keep and perform
all the terms and conditions hereof, the Tenant shall peaceably and quietly
have, hold and enjoy the Premises for the term aforesaid, free from interference
from the Landlord or anyone claiming by, through or under the Landlord, subject
however to ground leases, underlying leases and mortgages as hereinbefore
described, and to the lien, rights and estate by virtue of unpaid taxes of any
government having jurisdiction of the Premises of which the herein Premises are
a part.

                               ARTICLE TWENTY-NINE
                                SECURITY DEPOSIT

        (a) Tenant is simultaneously entering into three separate leases with
Landlord, one at 75 Varick Street (the "One Hudson Square Lease"), one at 200
Hudson Street (the "Hudson Street Lease") and one at 12-16 Vestry Street (the
"Vestry Street Lease"). Pursuant to the One Hudson

                                      (30)

<PAGE>

Square Lease, Tenant has deposited with Landlord a certain sum, with scheduled
reductions over time. It is the intention of the parties that the sum so
deposited by Tenant shall constitute security for all three leases and that
there shall be no allocation of the security deposit among the several leases.
The provisions of Article Twenty-nine of the One Hudson Square Lease are
incorporated herein by reference as if set forth at length. Unless otherwise
agreed to in writing by Landlord, the surrender or early termination of any one
of the three lease shall not entitle Tenant to a return of the security deposit
until all three of the leases have expired or other terminated and all of
Tenant's obligations have been satisfied.

                                 ARTICLE THIRTY
                REAL ESTATE TAX AND OPERATING EXPENSE ESCALATION

        (a) Real Estate Taxes Escalation. In order to adjust, during the term of
this lease, for increases in the expenses of the Landlord for Real Estate Taxes,
the Tenant, commencing on April 1, 2001 and in each year thereafter, shall pay
to the Landlord, as additional rent, the Tenant's Proportionate Share of any
Increase in such Real Estate Taxes, all in accordance with paragraphs (c)
through (g) below.

        (b) Operating Expense Escalation. In order to adjust, during the term of
this lease, for increases in the expenses of the Landlord in operating the
building, the Tenant shall pay to the Landlord, as additional rent, commencing
on April 1, 2001 and on each April 1 thereafter, the amount indicated in
Schedule 1 as the Operating Expense Payment, such amount to be paid (in addition
to the annual fixed rent) in twelve equal monthly installments.

        (c) Definitions. As used in this Article the following capitalized words
or expressions shall have the meaning ascribed to them below:

        1.      "Real Estate Taxes" shall mean and include all expenditures of
        the Landlord for taxes or assessments payable by the Landlord, as
        finally determined, upon or with respect to the building and the land
        upon which it is located, imposed by Federal, State or local government
        (plus all reasonable expenditures for fees and expenses incurred in the
        course of obtaining a reduction in any tentative assessed valuation),
        but shall not include income, franchise, inheritance or capital stock or
        like taxes.

        2.      "Increase in Real Estate Taxes" shall mean the amount by which
        Real Estate Taxes in any Subsequent Year, exceed the real estate taxes
        in the Base Year (the "Base Real Estate Taxes").

        3.      "Projected Real Estate Taxes" shall mean the Landlord's
        reasonable estimate of Real Estate Taxes for the particular Subsequent
        Year.

        4.      "Comparative Statement" shall mean a statement, in writing
        signed by the Landlord, or on its behalf by an officer of any
        corporation acting as its managing agent, showing (i) a comparison of
        (a) Real Estate Taxes for the Base Year with (b) Projected Real Estate
        Taxes for the upcoming Subsequent Year, (ii) if the Tenant paid
        additional rent pursuant to this Article with respect to the immediately
        preceding Subsequent Year as a result of Increase in Real Estate Taxes,
        any adjustment necessitated by a variance between Projected Real Estate
        Taxes for such immediately preceding Subsequent Year (as shown in the
        current Comparative Statement) and the actual Real Estate Taxes for such
        immediately preceding Subsequent Year (as shown in the last Comparative
        Statement) and (iii) the Operating Expense Payment for the then current
        Subsequent Year. At the request of the Tenant, the Comparative Statement
        shall be accompanied by a copy of the most recent statement for real
        estate taxes for the Premises received by Landlord from the City of New
        York.

        5.      "Tenant's Proportionate Share" shall mean 14.71%.

                                      (31)

<PAGE>

        6.      "Base Year" shall mean the calendar year 2000. The Base Real
        Estate Taxes shall be computed as the average of the Real Estate Taxes
        for the 1999/2000 and 2000/2001 fiscal years.

        7.      "Subsequent Year" shall mean each twelve-month period commencing
        April 1, starting with the period commencing April 1, 2001.

        (d) Statements for the Tenant. Prior to April 1, 2001, and on or before
that day in each Subsequent Year, the Landlord will furnish a Comparative
Statement to the Tenant. The failure of the Landlord to furnish a Comparative
Statement shall be without prejudice to the right of the Landlord to furnish a
Comparative Statement at any time in the future.

        Every Comparative Statement furnished by the Landlord pursuant to this
Article shall be conclusive and binding upon Tenant unless within the later of
(i) ninety (90) days after the receipt of such Comparative Statement, or (ii)
ninety (90) days after the Tenant has received a copy of the tax bill if the
Tenant has requested a copy of the tax bill within ninety days after receipt of
the Comparative Statement, Tenant shall notify Landlord that it disputes the
correctness thereof, specifying the particular respects in which such
Comparative Statement is claimed to be incorrect. Pending the determination of
such dispute, Tenant shall pay additional rent in accordance with such
Comparative Statement and such payment shall be without prejudice to Tenant's
position and to the Tenant's rights to a refund of any overpayment. If the
dispute shall be determined in Tenant's favor, Landlord shall within five
business days after Landlord's receipt of the notice of such determination, pay
Tenant the amount of Tenant's overpayment of additional rent resulting from
compliance with such Comparative Statement. This provision shall survive the
expiration or termination of the lease and shall be binding on the successors of
each party.

        (e) Computation of Increases in Rent Payable by Tenant. When the
Landlord shall furnish the Tenant with any Comparative Statement in accordance
with this Article which shall show an Increase in Projected Real Estate Taxes,
then commencing April 1, 2001, and on April 1 of each Subsequent Year in
question, in addition to the increase in rent attributable to the Operating
Expense Payment for such Subsequent Year, the rent payable under the lease shall
be increased by the Tenant's Proportionate Share of the increase in the
Projected Real Estate Taxes. Such increases shall be payable (with payment on
account of such increases) as follows: on the first day for the payment of rent
under this lease following the receipt of the Comparative Statement, the Tenant
shall pay to the Landlord the sum equal to (1) the aggregate of one-twelfth of
the Tenant's Proportionate Share of the increase in Projected Real Estate Taxes,
plus or minus, as the case may be, (2) any adjustment necessitated by a variance
between (x) the Projected Real Estate Taxes for such immediately preceding
Subsequent Year and (y) the actual Real Estate Taxes for such immediately
preceding Subsequent Year, plus (3) one-twelfth of the Tenant's Operating
Expenses' payment. Until a different Comparative Statement shall be submitted as
above provided, the monthly installments or rent payable under this lease due to
an Increase in Projected Real Estate Taxes shall continue to be increased by
such amount; however, notwithstanding any other provision herein, the failure of
the Landlord to submit a Comparative Statement in any Subsequent Year shall not
affect the amounts payable by Tenant as Operating Expense Payment in such
Subsequent Year.

        With respect to the Comparative Statement furnished to the Tenant in the
Subsequent Year following the year in which the term of this lease terminates,
if such Comparative Statement shall indicate an adjustment necessitated by a
variance of the type referred to in clauses (x) and (y) in the immediately
preceding paragraph, then the Tenant shall promptly pay to the Landlord, or the
Landlord promptly shall pay to the Tenant, as the case may be, the amount of any
such adjustment as indicated in such Comparative Statement.

        (f) Inspection of Books. The Tenant or its authorized representative
shall have a right to examine the books of the Landlord showing the Real Estate
Taxes with respect to the building during regular business hours for the purpose
of verifying the information set forth in any Comparative Statement relating to
any Increase in Real Estate Taxes shown in such Comparative Statement; provided
that a written request for such inspection is made by the Tenant within 120 days
of the receipt of any such Comparative Statement.

                                      (32)

<PAGE>

        (g) Decreases in Real Estate Taxes. In no event shall any decrease in
the Real Estate Taxes in any way reduce the fixed rent or additional rent
payable by the Tenant under this lease, except to the extent to which a decrease
in Real Estate Taxes shall result in a decrease in the additional rent payable
pursuant to paragraph (a) of this Article; provided, however, that no decrease
in Real Estate taxes shall in any way reduce any additional rent payable on
account of any Operating Expense Payment.

                               ARTICLE THIRTY-ONE
                                    SERVICES

        (a) For purposes of this lease, "Business Hours" shall mean normal
building operation hours of eight a.m. to six p.m. and "Business Days" shall
mean Monday through Friday, except for those days designated as legal holidays
by the Federal or State government or by the unions now or hereafter
representing the Landlord's building personnel.

        (b) During the term of this lease, the Landlord shall furnish during
Business Hours on Business Days passenger elevator service with the elevator now
or hereafter in the building sufficient heat during the cold season to heat the
Premises, and, if applicable, condenser water from the Landlord's cooling tower
equipment located on the roof of the building from April 15th through October
15th. The Landlord shall maintain in service and available for the non-exclusive
use of the Tenant at least one passenger elevator at all times, which passenger
elevator may, when the elevator in the building is out of service, be in
Landlord's building at 200 Hudson Street. Freight elevator service shall be
solely through the 200 Hudson Street building. If the Tenant requires freight
elevator service, heat, or, if applicable, condenser water, on non-Business Days
or during non-Business Hours on Business Days, the Landlord will furnish the
additional requested service upon notice of the Tenant's need therefor. Such
notice may be written or oral and shall be given prior to 2 p.m. on the day upon
which such service is requested or by 2 p.m. of the last preceding Business Day
if service is requested on other than a Business Day. The Tenant will pay for
any overtime freight elevator service, heat, and, if applicable, condenser
water, at the respective prevailing rates per hour as established from time to
time by the Landlord for such services at the building or in the buildings of
the Landlord, generally, for each hour during which the additional service is
supplied. All charges for such overtime service shall constitute additional rent
and shall be payable within fifteen (15) days after presentation of a bill, and
in the event of default of payment therefor, the Landlord may refuse further
service and the Landlord shall have all remedies available to it for collection
herein specified with respect to rent. The failure on the part of the Landlord
to furnish elevator service, heat, or, if applicable, condenser water, if due to
breakdowns, repairs, maintenance, strikes or other causes beyond the control of
the Landlord, shall involve no liability on the part of the Landlord and shall
not constitute an actual or constructive eviction, nor relieve the Tenant from
any of its obligations under this lease nor entitle the Tenant to an abatement
of rent.

        (c) The Tenant shall maintain, at its own cost and expense, all
air-conditioning equipment now or hereafter serving the premises, using a
contractor approved by the Landlord. If the Tenant fails to make any necessary
repairs, the Landlord may perform the same for the account of the Tenant in
accordance with the provisions of this lease.

        (d) Provided the Tenant shall keep the Premises in order, the Landlord,
at the Landlord's expense, shall cause the Premises, excluding any portions
thereof used for the storage, preparation, service or consumption of food or
beverages, to be cleaned on Business Days substantially in accordance with the
Specifications set forth as Schedule B annexed hereto. The Tenant, at the
Tenant's sole cost and expense, shall cause all portions of the Premises used
for the storage, preparation, service or consumption of food or beverages to be
cleaned daily in a manner reasonably satisfactory to the Landlord, and to be
exterminated against infestation by vermin, rodents or roaches regularly and, in
addition, whenever there shall be evidence of any infestation. Any such
extermination shall be done at the Tenant's sole cost and expense and by
contractors reasonably approved by the Landlord. If the Tenant shall perform any
additional cleaning services in addition to the services provided by the
Landlord, the Tenant shall employ such cleaning contractor providing services to
the building on behalf of the Landlord or such other cleaning contractor as
shall be approved by the Landlord. The Tenant shall, at its sole cost and
expense, comply with all

                                      (33)

<PAGE>

present and future laws, ordinances, regulations and requirements of the City,
State or Federal Government or any agency having jurisdiction over the building,
or any rules which the Landlord may reasonably impose, with respect to the
recycling or sorting of refuse and rubbish. The Landlord reserves the right to
refuse to collect or accept from the Tenant any refuse or rubbish which is not
separated and sorted as required and to require the Tenant to arrange for such
collection, at the Tenant's sole cost and expense, using a contractor reasonably
satisfactory to the Landlord. The Tenant shall indemnify the Landlord from all
liability arising from the Tenant's failure to comply with the provisions of
this Article. The Tenant shall pay to the Landlord the cost of removal of any of
the Tenant's refuse and rubbish from the building which exceeds normal office
requirements.

        (e) The Landlord shall provide to the Premises hot and cold water for
ordinary drinking, cleaning and lavatory purposes. If the Tenant uses or
consumes water for any other purposes or in unusual quantities (of which fact
the Landlord shall be the sole judge), the Landlord may, at the Tenant's
expense, install a water meter or require the Tenant to install a meter. The
Tenant shall thereafter maintain the meter in good working order at the Tenant's
expense and the Tenant shall pay for water consumed as shown on said meter as
additional rent as and when bills are rendered at 110% of the Landlord's cost
therefor. In default in making such payment, the Landlord may pay such charges
and collect the same from the Tenant. The Tenant shall pay the New York City
sewer rents, charges or any other tax apportioned to the Tenant's metered
consumption of water at the Premises. The apportionment of the sewer rent to the
Premises shall be made in accord with the measurement or apportionment of water
consumed at the Premises as provided herein. The sewer rents shall be billed
with the water charges and shall constitute additional rent.

        (f) The Landlord may suspend any service which it is required to provide
hereunder, if it should become necessary or proper so to do, at any time. The
Landlord shall restore such service within a reasonable time, making due
allowance for labor troubles, acts of God, or any cause beyond the Landlord's
control. Should the Tenant be in default in the payment of any rent hereunder,
the Landlord may, upon not less than three days' notice, and without diminution
of the liability of the Tenant hereunder, and without constituting an eviction,
constructive or otherwise, suspend or refuse the Tenant freight elevator service
and should the Tenant, after notice, violate the provisions of Rule 11, the
Landlord may, without any diminution of such liability or constituting such
eviction, suspend or refuse the Tenant freight elevator service until the
conditions in violation of Rule 11 have been fully remedied.

        (g) The Landlord shall be entitled to refuse to furnish passenger or
freight elevator service in connection with any sale at auction of the Tenant's
fixtures, machinery, stock in trade and other property or a sale in any other
manner of all or substantially all of such property unless the Landlord shall
have been given not less than two days' notice of the intention to hold the
auction or other sale and unless the Landlord shall be given an undertaking by a
person, firm or corporation of satisfactory financial resources wherein the
Landlord shall be indemnified against (i) all expense incurred by the Landlord
in connection with the removal by purchasers of any property sold to them at the
auction or other sale, (ii) all expense for removal or storage of any property
sold at the auction or other sale which is not removed by the purchaser within
two days following the sale, and (iii) all expenses which the Landlord may incur
for the removal of property not sold and waste and rubbish from the Premises.

        (h) The Tenant shall have access to the building (24) hours a day, seven
(7) days a week. During Business Hours on Business Days, messengers shall have
access to the Premises (through 200 Hudson Street only) through the passenger
elevators, or, if bulky packages are being delivered, through the freight
elevator. During non-Business Hours or on non-Business Days, messengers shall
have access to the Premises. The Landlord reserves the right, during the term of
this lease, to designate an area in the building for packages to be delivered,
either for transmittal to the Tenant, or notification to the Tenant of the
delivery of same.

                                      (34)

<PAGE>

                               ARTICLE THIRTY-TWO
                                    INSURANCE

        (a) The Tenant shall obtain and keep in full force and effect during the
term of this lease, at the Tenant's sole cost and expense, (i) a policy of
comprehensive general public liability and property damage insurance on an
occurrence basis, with a broad form contractual liability endorsement and a
completed operations endorsement with minimum limits with a combined single
limit with respect to each occurrence in an amount of not less than $5,000,000
for injury (or death) to persons and damage to property; (ii) an "all risk"
insurance policy, with extended coverage, covering all of Tenant's personal
property and alterations for 100% of the replacement cost thereof, as well as
business interruption insurance adequate to cover the Tenant's loss of income as
a result of a loss sustained by a peril covered under the policy; (iii) Worker's
Compensation Insurance, as required by law; and (iv) such other insurance in
such amounts as Landlord may reasonably require from time to time. Such policies
shall provide that the Tenant is named as the insured. Landlord and any managing
agent, lessors and mortgagees (whose names have been furnished to the Tenant)
shall be named as additional insureds, as their respective interests may appear.
The Tenant shall have the right to insure and maintain the insurance coverages
required under this Article under blanket insurance policies covering other
premises occupied by the Tenant so long as such blanket policies comply as to
terms and amounts with the requirements set forth in this Article; provided
that, upon request, the Tenant shall deliver to the Landlord a certificate from
the Tenant's insurer evidencing the portion of such blanket insurance allocable
to the Premises.

        (b) All insurance required to be carried by Tenant hereunder shall be
written in form and substance reasonably satisfactory to the Landlord and issued
by a reputable and independent insurer permitted to do business in the State of
New York, and rated in Best's Insurance Guide (or any successor thereto) as
having a general policyholder rating of not less than "A" and a financial rating
of at least "XIII". The policy required to be carried pursuant to paragraph (a)
(i) above shall contain a provision that (1) the policy shall be non-cancelable
with respect to the Landlord and such managing agents, lessors and mortgagees
(whose names and addresses have been furnished to the Tenant) unless thirty (30)
days' prior written notice shall be given to the Landlord by certified mail,
return receipt requested, which notice shall contain the policy number and the
name of the insured and additional insureds, and (2) no act or omission of the
Tenant shall affect or limit the obligation of the insurer to pay the amount of
any loss sustained. Certificates of insurance (including endorsements and
evidence of the waivers of subrogation required pursuant to Article SIXTEEN
hereof), or evidence of renewal of such coverage, shall be delivered to the
Landlord prior to the Commencement Date (or any earlier entry upon the Premises
by the Tenant or any of the Tenant's employees, agents or contractors prior to
the Commencement Date), and at least thirty (30) days prior to the expiration of
such policy. If the Tenant fails to obtain or keep in force the insurance
required by this Article, or to pay the premiums thereof, provided the Tenant is
afforded written notice of the Landlord's intention to pay such premium ten (10)
days prior thereto, in addition to all other rights the Landlord may have under
this lease, the Landlord may, from time to time, and as often as such failure
shall occur, pay the premiums therefor, and any and all sums so paid for
insurance by the Landlord shall be and become, and are hereby declared to be,
additional rent under this lease and shall be due and payable within fifteen
(15) days after rendition of a bill therefor.

                              ARTICLE THIRTY-THREE
                           DEFAULT UNDER OTHER LEASES

        Intentionally omitted.

                               ARTICLE THIRTY-FOUR
                          WORK TO BE DONE BY LANDLORD

        If work of any nature is agreed herein to be done by the Landlord, the
Tenant agrees that it may be done after the Commencement Date and that no rebate
of rent or allowance will be granted therefor, except as set forth in paragraph
(g) of Article One hereof. The Landlord shall not be required to furnish any
work or materials to the Premises, except as expressly provided in the Work

                                      (35)

<PAGE>

Letter attached to this lease Exhibit C. In case the Landlord is prevented from
making any repairs, improvements, decorations or alterations, installing any
fixtures or articles of equipment, furnishing any services or performing any
other covenant herein contained to be performed on the Landlord's part, due to
the Landlord's inability to obtain, or difficulty in obtaining, labor or
materials necessary therefor, or due to any governmental rules and regulations
relating to the priority of national defense requirements or strikes, or due to
labor troubles, accident or due to any other cause beyond the Landlord's
control, the Landlord shall not be liable to the Tenant for damages resulting
therefrom, nor (except as expressly otherwise provided in Article SIXTEEN hereof
in respect of damage to the Premises due to fire), shall the Tenant be entitled
to any abatement or reduction of rent by reason thereof, nor shall the same give
rise to a claim in the Tenant's favor that such failure constitutes actual or
constructive, total or partial, eviction from the Premises.

                               ARTICLE THIRTY-FIVE
                             CONSENT TO JURISDICTION

        This lease shall be governed in all respects by the laws of the State of
New York. The Tenant irrevocably consents and submits to the jurisdiction of any
Federal, State, or county court sitting in the State of New York in any action
or proceeding arising out of this lease and/or the use and occupation of the
Premises. The Tenant agrees that any action or proceeding brought by the Tenant
against the Landlord in respect of any matters arising out of or relating to
this lease may only be brought in the State of New York, County of New York. The
Tenant hereby irrevocably designates Colby Attorneys Service Co., Inc., 41 State
Street, Suite 106, Albany, New York 12207 to accept service of process on the
Tenant's behalf and agrees that such service shall be deemed sufficient. If the
Tenant is not a New York partnership or corporation or a foreign corporation
qualified to do business in the State of New York, it shall designate in
writing, an agent in New York County for service under the laws of the State of
New York.

                               ARTICLE THIRTY-SIX
                                TENANT LIABILITY

        (a) If more than one tenant is named as the tenant under this lease,
each of the named tenants shall be jointly and severally liable for the
performance of all of the terms, covenants and agreements on the Tenant's part
to be performed under this lease.

        (b) If the Tenant (or any permitted assignee of Tenant) is a partnership
(or is comprised of two or more persons, individually or as co-partners of a
partnership or shareholders of a professional corporation) the following
provisions shall apply to each tenant: (i) the liability of each of the partners
comprising the Tenant shall be joint and several; (ii) each of the parties
comprising the Tenant hereby consents in advance to, and agrees to be bound by,
any modification, termination, discharge or surrender of this lease which may
hereafter be made and by any notices, or other communications which may
hereafter be given by the Tenant or any of the parties comprising the Tenant;
(iii) all statements, notices or other communications given to the Tenant or to
any of the parties comprising the Tenant shall be deemed given to the Tenant and
all parties; (iv) if the Tenant shall admit new partners, all such new partners
shall, by their admission to the 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) the Tenant shall give to the Landlord notice
of the admission of any new partners, and upon demand of the Landlord, such new
partners shall execute and deliver to the Landlord an agreement in form
satisfactory to the Landlord, wherein each new partner shall assume performance
of all of the terms, covenants and conditions of this lease on Tenant's part to
be performed (but the Landlord's failure to request such an agreement nor the
partners failure to deliver such an agreement shall relieve the partner of its
liability hereunder).

        (c) If the Tenant is a partnership, it shall not convert to or become a
corporation, limited liability company, registered limited liability partnership
or any other form of business organization (such entity being referred to as a
"Successor Entity"), without the Landlord's prior written consent. The Landlord
shall not unreasonably withhold its consent to the Tenant's conversion to a
Successor Entity provided that (i) the Tenant shall cause each partner of the
Tenant to execute and deliver to the Landlord an agreement, in a form reasonably
satisfactory to the Landlord, pursuant to which

                                      (36)

<PAGE>

each partner of the Tenant agrees to remain personally liable jointly and
severally for all of the terms, covenants and conditions of the lease that are
to be performed by the Successor Entity; (ii) the Successor Entity shall have a
Net Worth (as hereinbefore defined) of not less than the Net Worth of the Tenant
on the date of execution of the lease; (iii) no Event of Default has occurred
and is continuing hereunder; (iv) the Successor Entity succeeds to all of the
business and assets of the Tenant; (v) the Tenant shall deliver to the Landlord
such documentation as may be reasonably required by the Landlord to evidence
compliance with the requirements set forth above; and (vi) the Tenant shall
reimburse the Landlord for all reasonable costs and expenses, including, without
limitation, attorneys' fees, that may be incurred by the Landlord in connection
with the conversion of the Tenant to a Successor Entity.

                              ARTICLE THIRTY-SEVEN
                          ADJACENT EXCAVATION-SHORING

        If an excavation shall be made upon land adjacent to the Premises, or
shall be authorized to be made, the 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
wall or the building from injury or damage and to support the same by proper
foundations without any claim for damages or indemnity against the Landlord, or
diminution or abatement of rent.

                              ARTICLE THIRTY-EIGHT
                           FAILURE TO GIVE POSSESSION

        In the event the Landlord, for any reason, shall be unable to give
possession of the Premises by the date set forth in this lease for the
commencement of the term, this lease shall nevertheless continue in full force
and effect and the Landlord shall tender and the Tenant shall take possession
of said Premises under the terms of this lease as soon as the Landlord shall
have tendered possession thereof to the Tenant; the rent, however, to begin on
the date upon which such possession is tendered to the Tenant, subject to the
free rent provisions of paragraph (g) of Article One. This is intended to
constitute an "express provision to the contrary" within the meaning of Section
223-a of the New York Real Property Law. No such failure to give possession on
the date set forth in this lease for the commencement of this term shall affect
the validity of this lease or give rise to any claim for damages by the Tenant
or claim for rescission of this lease, nor shall the same be construed in any
way to extend the term of this lease. In the event that any tenant holds over in
Premises demised to the Tenant hereunder, Landlord shall use reasonably
commercial efforts, including the institution of summary proceedings, to obtain
possession of such Premises.

                               ARTICLE THIRTY-NINE
                                     BROKER

        The Tenant represents and warrants to the Landlord that all of the
Tenant's negotiations respecting this lease which were conducted with or through
any person, firm or corporation, other than the officers of the Landlord, were
conducted through Plymouth Partners, Ltd. (the "Broker"). The Landlord agrees to
pay the commission due to the Broker pursuant to the terms of a separate
agreement. Landlord and Tenant agree to indemnify and hold one another harmless
from and against all demands, liabilities, losses, causes of action, damages,
costs and expenses (including, without limitation, attorneys' fees and
disbursements) suffered or incurred in connection with any claims for a
brokerage commission, finder's fee, consultation fees or other compensation
arising out of any conversations or negotiations had by the party against whom
indemnification is claimed with any broker or other party except for the Broker.

                                  ARTICLE FORTY
                                RENT RESTRICTIONS

        If at the commencement of, or at any time or times during the term of
this lease, the fixed rent or additional rent reserved in this lease shall be or
become uncollectible by virtue of any law, governmental order or regulation, the
Tenant shall enter into such agreements and take such other

                                      (37)

<PAGE>

steps (without additional expense to the Tenant) as the Landlord may reasonably
request and as may be legally permissible to permit the Landlord to collect the
maximum amounts which may from time to time be legally collectible while such
restrictions are in effect (and not in excess of the amounts reserved for under
this lease). Upon the termination of such rent restrictions (a) the fixed rent
and additional rent shall become and thereafter be payable in accordance with
the terms of this lease, and (b) the Tenant shall pay to the Landlord, if
legally permissible, an amount equal to (i) the rent which would have been paid
during the period had such restrictions not been in effect, less (ii) the rents
which were paid by the Tenant to the Landlord during the period such
restrictions were in effect.

                                ARTICLE FORTY-ONE
                             CERTIFICATES BY TENANT

        At any time and from time to time, the Tenant, for the benefit of the
Landlord or any other entity specified by the Landlord, within fifteen business
days after request, shall deliver to the Landlord a duly executed and
acknowledged certificate, certifying that this lease is not modified and is in
full force and effect (or if there shall have been modifications that the same
is in full force and effect as modified and stating the modifications); the
commencement and expiration dates of the lease; the dates to which rent and
additional rent have been paid; whether or not, to the best knowledge of the
Tenant, there are any existing defaults on the part of either the Landlord or
the Tenant in the performance of the terms, covenants and conditions of the
lease to be performed by such party, and if so, specifying the default; and such
other information as the Landlord may reasonably request with respect to this
lease.

                                ARTICLE FORTY-TWO
                          RESTRICTIONS ON TENANT'S USE

        (a) The Tenant agrees that the value of the Premises and the building of
which the Premises form a part and the reputation of the Landlord will be
seriously injured if the Premises are used for any obscene or pornographic
purposes or any sort of commercial sex establishment. The Tenant covenants and
agrees not to sell, display or post, or knowingly allow to be sold, displayed or
posted any obscene or pornographic material on the Premises. The Tenant agrees
that if at any time the Tenant violates any of the provisions of this Article,
such violation shall be deemed a breach of a substantial obligation of the terms
of this lease.

        (b) The Tenant covenants and agrees that during the term of this lease,
it will not use the Premises or any part thereof, or permit the Premises or any
part thereof to be used (1) for banking, trust company or safe deposit business;
(2) as or by a commercial or savings bank, a trust company, a savings and loan
association, a loan company, or a credit union; (3) for the sale or travelers
checks, money orders and/or foreign exchange; (4) as a restaurant and/or bar
and/or for the sale of soda and/or beverage and/or sandwiches and/or ice cream
and/or baked goods; (5) by the United States Government, the City or State of
New York, any foreign government, the United Nations or any agency or department
of any of the foregoing, or any other person or entity having sovereign or
diplomatic immunity; (6) as an employment agency, search firm or similar
enterprise, school or vocational training center (except for the training of
employees of the Tenant intended to be employed at the Premises); (7) as a
barber shop or beauty salon; or (8) as a diagnostic medical center and/or for
the practice of medicine.

                               ARTICLE FORTY-THREE
                              HAZARDOUS MATERIALS

        The Tenant shall not cause or permit any Hazardous Materials to be used,
stored, transported, released, handled, produced or installed in, on or from the
Premises or the building. "Hazardous Materials" shall mean any flammable,
explosives, radioactive materials, hazardous wastes, hazardous and toxic
substances, asbestos or any material containing asbestos, or any other substance
or material which would be defined as a hazardous or toxic substance,
contaminant, or pollutant, or otherwise regulated by any Federal, state or local
environmental law, rule or regulation, including without limitation, the
Comprehensive Environmental Response Compensation and Liability Act of 1980, as
amended. In the event of a violation of the foregoing provisions of this
Article, the

                                      (38)

<PAGE>

Landlord may, without notice and without regard to any grace period contained in
this lease, take all remedial action deemed necessary by the Landlord to correct
such condition and the Tenant shall reimburse the Landlord for the cost thereof,
upon demand, as additional rent. Nothing contained herein shall prevent the
Tenant from maintaining customary and normal cleaning supplies and office
equipment and supplies, provided such items are used and stored in compliance
with the requirements of all applicable laws.

                               ARTICLE FORTY-FOUR
                                 MISCELLANEOUS

        (a) This lease contains the entire agreement between the parties and all
prior negotiations and agreements are merged into this lease.

        (b) This lease may not be recorded.

        (c) The covenants, conditions and agreements contained in this lease
shall bind and inure to the benefit of the Landlord and the Tenant and their
respective heirs, executors, administrators, successors and permitted assigns.

        (d) If any term, covenant or provision of this lease, or the application
thereof, shall be held invalid or unenforceable, the remainder of this lease, or
the application thereof to situations other than that as to which it is invalid
or unenforceable, shall not be affected thereby, and each term, covenant and
provision shall be valid and enforceable to the fullest extent permitted by law.

        (e) The submission of this lease for execution by the Tenant shall not
be binding upon the Landlord or the Tenant unless and until both the Landlord
and the Tenant have executed and unconditionally delivered a fully executed copy
of this lease to each other.

        (f) The captions in this lease are inserted for convenience only and
shall not define, limit or describe the scope of the provisions to which any of
them apply. The use of any pronoun referring to either of the parties to this
lease shall be construed to include any or no gender and any number.

        (g) If the Tenant is a corporation, the person executing this lease on
behalf of the Tenant represents and warrants that the Tenant is duly
incorporated and, if applicable, is duly qualified and authorized to conduct
business in the State of New York, and the person executing this lease on behalf
of the Tenant has been duly authorized to do so. The Tenant shall provide the
Landlord with a copy of a resolution to this effect, and evidence of its due
incorporation and qualification, if applicable, upon request of the Landlord.

                                      (39)

<PAGE>

        IN WITNESS WHEREOF, this agreement has been signed and sealed by the
parties hereto as of the date set forth above.

                                    THE RECTOR, CHURCH-WARDENS AND
                                    VESTRYMEN OF TRINITY CHURCH IN THE
                                    CITY OF NEW YORK

                                    By: /s/  Daniel Paul Matthews
                                       ----------------------------------
                                           Daniel Paul Matthews, Rector

                                    By: /s/ [ILLEGIBLE]
                                       ----------------------------------
                                              Director of Leasing

                                    By: /s/ [ILLEGIBLE]
                                       ----------------------------------
                                           Executive Vice President of
                                           Real Estate

                                    By: /s/ [ILLEGIBLE]
                                       ----------------------------------
                                           Finance Department

Attest:                             PHOTODISC, INC.
As to the Tenant:

/s/ [ILLEGIBLE]                     By: /s/ [ILLEGIBLE]                  (L.S)
--------------------                   ----------------------------------
                                          An Authorized Officer

                                      (40)

<PAGE>

                                   SCHEDULE A
                             RULES AND REGULATIONS

1. The Tenant shall not clean, nor require, permit or allow any window in the
Premises to be cleaned from the outside in violation of Section 202 of the New
York State Labor Law or of the Rules of the Board of Standards and Appeals, or
of any other board or body having or asserting jurisdiction.

2. All machinery shall be kept in approved settings sufficient, in the
Landlord's judgment, to absorb any shock and prevent any noise, vibration or
annoyance in the building of which the Premises are a part and, if necessary,
shall be provided with oil pans between such machinery and the floor beneath it,
sufficient to prevent the seepage of oil on or into the floors.

3. During the cold season, the windows shall be kept closed to maintain the
temperature of the Premises and to prevent any freezing thereof, or of any
equipment or appliance therein. If the building contains central
air-conditioning and ventilation, the Tenant agrees to keep all windows closed
at all times and to abide by all rules and regulations issued by the Landlord
with respect to such services. The Tenant shall draw and close the draperies or
blinds for the windows of the Premises whenever the air-conditioning system is
in operation and the position of the sun so requires.

4. All trucks, vehicles or conveyances used by the Tenant or others in the
delivery or receipt of material in the Premises or any other area in the
building shall have rubber tires and sideguards. The Tenant shall be responsible
for removing any oil deposited on the Premises from such trucks, vehicles or
conveyances.

5. The Tenant shall not alter any lock or install a new or additional lock or
bolt on any doors or windows. On termination or expiration of this lease, all
keys must be surrendered to the Landlord and in the event of the loss of any
keys furnished at the Landlord's expense, the Tenant shall pay to the Landlord
the cost thereof. If the building has a central security system, the Tenant
shall provide the Landlord with all access codes to the Premises. If the Tenant
fails to provide the Landlord with a means of access to the Premises, the
Landlord shall be relieved of all obligation, if any, to provide cleaning
services to the Premises.

6. The Landlord may exclude any persons visiting or attempting to visit the
Premises between 7 P.M. and 7 A.M. on Business Days or on non-Business Days
unless such person shall be equipped with a pass signed or approved by the
Landlord and unless such person shall sign his name and the Premises which he is
to visit on the night report. Each Tenant shall be responsible for all persons
for whom a pass shall be issued at the request of the Tenant and shall be liable
to the Landlord for all acts of such persons. The Tenant shall not have a claim
against the Landlord by reason of the Landlord excluding from the building any
person who does not present a pass. At all times, the Landlord retains the right
to prevent access to the building to all persons whose presence, in the judgment
of the Landlord, would be prejudicial to the safety, character or reputation of
the building.

7. All sanitary facilities, wash closets and plumbing fixtures shall be used
only for the purposes for which they were constructed, and no sweepings,
rubbish, rags, acids or other substances shall be deposited therein, and the
expense of any stoppage or damage resulting from the violation of this rule
shall be borne by the Tenant whose employees, agents or visitors caused it.

8. No sign or lettering shall be exhibited, inscribed, painted or affixed
outside of the Premises or on the inside of the Premises if the same can be seen
from the outside of the Premises except as may be approved in writing by the
Landlord, except that the name of the Tenant may appear on the entrance door of
the Premises. If the Tenant violates this rule, the Landlord may remove the same
without liability and the expenses so incurred by the Landlord shall be paid by
the Tenant as additional rent. The Tenant shall not allow noise to emanate from
the Premises to the street or other portions of the building. Any sign or
display which may be installed by the Tenant shall be

                                       (i)

<PAGE>

kept in good order and repair and in a neat and attractive condition. The
Landlord reserves the right to use the roof and outside walls surrounding the
Premises for sign purposes. The Landlord may remove any sign or signs or
displays in order to paint the Premises or any part of the building, or make any
repairs, alterations or improvements in or upon the Premises or building, or any
part thereof, provided it causes the same to be removed and replaced at the
Landlord's expense, whenever the painting, repairs, alterations or improvement
shall have been completed. Interior signs on doors shall be of a size, color and
style reasonably acceptable to the Landlord. The Landlord reserves the right,
acting reasonably, to approve the appearance and design of the elevator lobby on
each floor of the building.

9. The Landlord shall have the right to prohibit any advertising by the Tenant
which, in its reasonable judgment, tends to impair the reputation of the
building or its desirability as an office building, and upon written notice from
the Landlord, the Tenant shall refrain from or discontinue such advertising.

10. No awnings, antennae, aerials, ventilating and air-conditioning apparatus or
other projections shall be attached to the outside walls of the building. No
air-conditioning apparatus may be installed in windows of the Premises.

11. The lights, skylights, entrances, passages, courts, elevators, vestibules,
stairways, loading platforms, corridors, halls or any part of the building
intended for use in common by the Tenant with other occupants of the building
shall not be obstructed or encumbered by the Tenant or used for any other
purpose than for ingress or egress from the Premises and for delivery of
equipment in a prompt and efficient manner using elevators and passageways
designated for such delivery by the Landlord. In the event of any encumbrance or
obstruction, the Landlord may remove the material causing such encumbrance or
obstruction and cause it to be stored and charge the cost of doing so to the
Tenant. No courtyard or yard appurtenant to the Premises or the building shall
be used for parking vehicles of any kind. If the Premises are on the ground
floor of the building, the Tenant shall, at its expense, keep the sidewalk and
curb in front of the Premises clean and free from rubbish.

12. Subject to the provisions of Article FOUR of this lease, no part of the
Premises or the building shall be marked, painted, bored, drilled into, or in
any way defaced. Any drilling which is permitted by the Landlord shall be done
in accordance with the provisions of Article FOUR and shall be done during
non-Business Hours unless otherwise authorized by the Landlord in writing. No
boring, cutting or stringing of wires shall be permitted, except with the prior
written consent of the Landlord. No linoleum or other similar floor covering
shall be laid so that the same shall come in direct contact with the floor of
the Premises; and if such flooring is used, an interlining of builder's
deadening felt or other sound-attenuating materials shall be first affixed to
the floor, by a paste or other material, soluble in water. Cements and other
similar adhesive material shall not be used. Removal of any alterations,
decorations or improvements in compliance with Article FOUR of this lease shall
include the removal of all linoleum, lining and adhesive material.

13. No part of the Premises shall be used in a manner or for a purpose that is
substantially objectionable to the Landlord or to another tenant, by reason of
noise, odors, vibrations or otherwise, or which in the reasonable judgment of
the Landlord might cause structural injury to the building or interfere in any
way with other tenants or those having business in the building or create a
nuisance. Tenant shall not make, or permit to be made, any unseemly or
disturbing noises or disturb or interfere with occupants of this or neighboring
buildings or Premises or those having business with them whether by the use of
any musical instrument, radio, television set, unmusical noise, singing or in
any other way.

14. The Tenant's employees, guests and visitors shall not stand or loiter around
the lobby, hallways, stairways, elevators, front, roof or any other part of the
building used in common by the occupants thereof.

15. No load shall be placed upon any floor of the building exceeding the floor
load per square foot area which such floor was designed to carry, and all loads
shall be evenly distributed. The

                                      (ii)

<PAGE>

Landlord reserves the right to prescribe the weight and placement of all safes,
machinery and other personal property in the Premises so as to distribute their
weight.

16. Nothing shall be hung, shaken, thrown out of any window or doors, or down
any passages, stairways, elevators, or skylights of the building, nor shall any
of them be covered, obstructed or encumbered. The Tenant shall not use, keep or
permit to be used any foul or noxious gas or substance in the Premises. No
bicycles, vehicles or animals (other than seeing-eye dogs), fish or birds shall
be kept in the building. Smoking or carrying lighted cigars or cigarettes in the
elevators of the building is prohibited.

17. Building employees shall not perform any work or do anything outside of
their regular duties, unless under special instructions from the office of the
Landlord.

18. No peddling, soliciting or canvassing shall be permitted in the Premises or
by the Tenant's employees elsewhere in the building.

19. All deliveries to or from the Premises shall be made by means of the freight
elevators. The Landlord may prescribe, and from time to time vary, the time for
any removals or deliveries from or to the Premises. Removals or deliveries of
safes, machinery, business equipment, furniture, freight, and any other heavy or
bulky matter shall be done only on the freight elevators and through the service
entrances and corridors and shall only be done upon written authorization of the
Landlord and only in such manner and by such persons as may be acceptable to the
Landlord, and the Landlord may require any further assurances or agreements or
indemnity from the Tenant to the movers to that effect. If any safe, machinery,
equipment, bulky matter or fixtures requires special handling, 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. The Landlord
reserves the right to inspect all freight to be brought into the building and to
exclude from the building all freight which violates any of these Rules and
Regulations or the lease of which these Rules and Regulations are a part.

20. The Tenant shall not permit its servants, employees, agents, visitors or
licensees, at any time to bring or keep upon the Premises any inflammable,
combustible, explosive or hazardous fluid, material, chemical or substance or
cause or permit any unusual or objectionable odors (from cooking or otherwise)
to be produced upon or emanate from the Premises.

21. No Tenant shall operate any elevator in the building, except for automatic
self-service elevators.

22. The Tenant shall not use any method of heating or air-conditioning other
than that supplied or approved by the Landlord.

23. If the Premises consist of basement space, or if any property of the Tenant
is stored in the basement portion of the building, all such property shall, at
the Tenant's own cost and expense, be placed entirely on skids or platforms,
which will raise such property at least six inches from the floor. The Landlord
shall have no liability for any materials stored in the basement.

24. No vending machine shall be installed or permitted to remain in the Premises
unless the Landlord shall first have given its specific written authorization
for the installation of each such machine. If any vending machine dispenses any
beverages or other liquids or refrigerates, it shall have a waterproof pan
located thereunder, connected to a drain.

25. The Tenant shall not attach or install curtains, draperies, blinds, shades
or screens on any window in the Premises without the Landlord's prior written
consent, not to be unreasonably withheld or delayed.

26. The Tenant shall keep the entrance door to the Premises closed at all times.

27. No space in the building shall be used for manufacturing, for the storage of
merchandise, or for the sale or merchandise, goods or property of any kind at
auction or otherwise.

                                      (iii)

<PAGE>

                                    EXHIBIT B
                            CERTIFICATE OF OCCUPANCY

                                      (vii)

<PAGE>

                            DEPARTMENT OF BUILDINGS

                     BOROUGH OF MANHATTAN, CITY OF NEW YORK

HVC     CERTIFICATE OF OCCUPANCY No.         10185                    193     25

Supersedes Certificate of Occupancy No.
To the owner or owners of the building:      New York   Nov. 4, 1925

        THIS CERTIFIES that the building located on Block 221, Lot part of 30
        known as 12-16 Vestry Street-440444 Canal Street
                 74'11 3/4" front
under a permit, Application No. 23 Alt of 1925 conforms to the approved plans
and specifications accompanying said permit and any approved amendments thereto,
and to the requirements of the building code and all other laws and ordinances
and to the rules and regulations of the board of standards and appeals,
applicable to a building of its class and kind, except that in the case of a
building heretofore existing and for which no previous certificate of occupancy
has been issued and which has not been altered or converted since March 14,
1916, to a use that changed its classification as defined in the building code,
this certificate confirms and continues the existing uses to which the building
has been put; and

        CERTIFIES FURTHER that the building is of non-fireproof construction
within the meaning of the building code and may be used and occupied as a
business building as hereinafter qualified, in an unrestricted district under
the building zone resolution, subject to all the privileges, requirements,
limitations and conditions prescribed by law or as hereinafter specified.

<TABLE>
<CAPTION>
                                            PERSONS ACCOMMODATED
                  LIVE LOADS        ------------------------------------
    STORY         Lbs. per Sq. Ft.  MALE        FEMALE             TOTAL              USE
---------------------------------------------------------------------------------------------
<S>                  <C>             <C>          <C>                <C>             <C>
1st Story            240             15           15                 30              Factory

2nd   "              230             55           35                 90                 "

3rd   "              200             55           35                 90                 "

4th   "              160             55           35                 90                 "

5th   "              160             55           35                 90                 "

6th   "              140             55           35                 90                 "

7th   "              140             55           35                 90                 "
</TABLE>

      This certificate is issued to Renwick, Aspinwall & Tucker, architects
                8 West 40th Street, City, for the owner or owners.

                                                                         [SEAL]

                                    (Page 1)

<PAGE>

                                    EXHIBIT C
                                   WORK LETTER

        It is agreed that, except as otherwise indicated, the following work is
to be done to the Premises by the Landlord at the Landlord's expense:

        The Landlord shall provide a total connected load of up to 6 watts per
(rentable) square foot (exclusive of electricity required for base building
systems), of 3 phase 4 wire electric power with full neutrals. The disconnect
switch, submeter, and distribution of electricity within the Premises shall be
at the Tenant's expense.

LANDLORD'S INITIAL WORK

Tenant shall take the entire Premises "as-is," except that Landlord shall
substantially complete the following work on or before thirty (30) days
following the Commencement Date:

        1. Landlord shall deliver the space demolished, demised and broom clean.
Landlord shall strip all floors of existing carpeting (if any) and shall patch
all major holes or cracks (if any).

        2. Landlord shall provide ACP-5 certificates relative to asbestos
compliance.

        3. Tenant shall install all speakers, strobes, alarms and panels as
required by Local Law #58 and connect same to a central station. Upon
installation of a Class "E" fire alarm and communication system by the Landlord,
Tenant shall connect its speakers, strobes, alarms and panels, along with any
necessary interfacing devices, thereto.

        4. Landlord shall deliver the existing sprinkler system in good working
order.

LANDLORD'S ADDITIONAL WORK

Landlord shall perform the following additional work contemporaneously with
Tenant's construction at the Premises:

        1. Landlord shall renovate and recaulk existing window frames as
necessary and shall replace any cracked, broken or non-transparent window panes
throughout the entire premises.

        It is stipulated and agreed that the foregoing constitutes the work to
be done by the Landlord referred to in the lease to which this Work Letter is
attached and all the work to be done by the Landlord in the Premises, except as
otherwise expressly provided in such lease.

        It is further stipulated and agreed that the aforesaid work shall be
commenced by the Landlord as soon as possible after full execution of the lease
and the payment by the Tenant of the first installment of rent and the
performance by the Tenant of any other obligations to be performed by the Tenant
at the time of the signing of the lease and shall be completed with reasonable
diligence, subject to delays of the sort in Article THIRTY-FOUR, provided that
the Landlord shall not be required to do the work on days or hours other than
usual working days and hours in the trades in question.

        Subject to the foregoing provisions the Landlord reserves the right,
after according reasonable consideration to the Tenant's wishes in the matter,
to make all decisions as to the time or times when, the order and style in
which, said work is to be done, and the labor or materials to be employed
therefor. The work shall be done, unless the Landlord otherwise directs, during
the usual working hours observed by the trades in question. It is stipulated and
agreed that in case the Landlord is prevented from commencing, prosecuting or
completing said work, due to the Landlord's inability to obtain or difficulty in
obtaining the labor or materials necessary therefor, or due to any governmental
requirements or regulations relating to the priority or national

                                     (viii)

<PAGE>

                                   SCHEDULE 1

                            OPERATING EXPENSE PAYMENT

 Twelve-Month Period                        Operating Expense
 Commencing April 1                               Payment
 -------------------                        -----------------

       2000                                 $             0
       2001                                 $      3,849.00
       2002                                 $      7,814.00
       2003                                 $     11,897.00
       2004                                 $     16,103.00
       2005                                 $     20,436.00
       2006                                 $     24,898.00
       2007                                 $     29,494.00
       2008                                 $     34,655.00
       2009                                 $     39,972.00
       2010                                 $     45,448.00
       2011                                 $     51,088.00
       2012                                 $     56,897.00
       2013                                 $     62,881.00
       2014                                 $     69,044.00

                                       (x)

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