Document:

EXHIBIT 10.1
                                                                    ------------

                                 LEASE AGREEMENT

         THIS LEASE AGREEMENT (this "Lease") is made and entered into this 5th
day of May, 2005, by and between Sixth Road Woburn LLC, a duly organized
Massachusetts limited liability company (hereinafter referred to as "Landlord")
and Bridgeline Software, Inc., a duly organized Delaware corporation
(hereinafter referred to as "Tenant").

                                   WITNESSETH:

                               ARTICLE I: PREMISES

         Landlord hereby leases to Tenant and Tenant hereby takes from Landlord
approximately 5,360 square feet of rentable area (the "Premises"), outlined in
Exhibit A attached hereto and made a part hereof, within a portion of that
certain building (the "Building") at 10 Sixth Road in Woburn, Massachusetts (the
"Property") on the second floor together with all the improvements located
thereon.

         The Premises are leased subject to any and all existing encumbrances,
conditions, rights, covenants, easements, restrictions and rights of way of
record, and other matters of record, if any, applicable zoning and building
laws, regulations and codes, and such matters as may be disclosed by inspection
or survey.

                                ARTICLE II: TERM

2.1      Commencement Date.

         The term of this Lease shall be for six (6) years and three (3) months
(the "Term") and shall commence (the "Commencement Date") on the later of (i)
eight (8) weeks from full execution of this Lease or (ii) the date Landlord
shall have substantially completed the tenant improvements as provided in
Exhibit B attached hereto (that is, has completed the tenant improvements,
except for normal "punch list" items) in a good and workmanlike manner, in
compliance with all laws, and has delivered the Premises to Tenant in broom,
clean condition, free of all tenants, occupants and their property, and shall
have obtained reasonably satisfactory evidence confirming the substantial
completion of construction in accordance with the plans which include the tenant
improvements as provided in Exhibit B ("Landlord's Work"). In the event the
Premises are not completed on or before June 30, 2005, Tenant shall have the
right to terminate its obligations under this Lease; provided, however, that (i)
such date shall be extended for a period equal to the duration of any delays in
construction caused by strikes, shortages or materials, acts of God or other
matters not reasonably within the control of Landlord, and any delays in
completing the Premises as a result of change orders or other delays caused by
Tenant. Landlord shall be deemed to have satisfactorily completed the
construction of by Tenant. Landlord shall be deemed to have satisfactorily
completed the construction of the tenant improvements, and Tenant shall be
deemed to have waived all rights and remedies with respect to deficiencies in
such construction, except for deficiencies of which Tenant has informed
Landlord, in writing, not

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later than ninety (90) days  following the  Commencement  Date.  Landlord  shall
perform  Landlord's  Work at its sole cost and  expense  and shall use  diligent
efforts to complete such work on or before the date that is eight weeks from the
full execution of the Lease.

2.2      Early Possession.

         In the event that Landlord shall permit Tenant to enter the Premises
prior to the contemplated Commencement Date, such entry shall be deemed to be
pursuant to a license from Landlord to Tenant and shall be at the risk of
Tenant, and any early occupancy of the Premises shall be subject to all of the
provisions of this Lease, except for the obligation to pay Base Rent. If Tenant
occupies the Premises without the express written permission of Landlord, for
purposes of establishing the Commencement Date, Landlord shall be deemed to have
substantially completed the tenant improvements as provided in Exhibit B.

                                ARTICLE III: RENT

3.1      Base Rent.

         A. Tenant agrees to pay Landlord, at the address provided for notices
herein, or such other place or to such other person as Landlord may designate,
rent for the Premises ("Base Rent") in accordance with the following schedule:

         Commencing on the Commencement Date and continuing for three (3) months
thereafter ("Free Rent Period"), base rent shall be free, and thereafter until
the scheduled lease expiration, Tenant shall pay Base Rent, adjusted as herein
provided, in the amount of Eighty-Eight Thousand Four Hundred Forty and 00/100
Dollars ($88,440.00) per annum, payable in equal monthly installments of
$7,370.00 each.

         All payments of Base Rent made hereunder shall be made in advance on
the first day of each month during the Term of this Lease without deduction,
set-off, prior notice or demand in lawful money of the placecountry-regionUnited
States of America. The Base Rent payment for any fractional month at the
commencement, termination or expiration of the Term will be prorated. Tenant's
first payment of Base Rent and Additional Rent (as hereinafter defined) shall be
due and owing upon the date of execution of this Lease.

3.2      Additional Rent.

         All amounts which Tenant is required to pay pursuant to this Lease
except Base Rent, including Tenant's payments under Sections 3.3, 3.4 and 3.5
hereof and every fine, penalty, interest and cost which may be added for
nonpayment or late payment, will constitute "Additional Rent" hereunder, and if
Tenant fails to pay such Additional Rent when due, Landlord will have the right
to pay the same and will have all the right, powers and remedies with respect
thereto as are provided herein or by law in the case of nonpayment of Base Rent.

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3.3      Common Area Maintenance and Operating Expense Charge (Included in the
         Base Rent).

         Intentionally omitted.

3.4      Taxes.

         A. Payment of Taxes. Commencing on July 1, 2007 and continuing
throughout the Term hereof, Tenant will pay to Landlord, as Additional Rent
hereunder, Tenant's Pro Rata Share (as hereinafter defined) of taxes of any kind
and nature whatsoever, levied or assessed on the Building and the property on
which the Building is located, including taxes levied against the rents,
occupancy or use of the Premises (hereinafter collectively referred to as
"Taxes"), over the actual real estate taxes levied or assessed on the Building
and the property on which the Building is located for fiscal year 2006 (the "Tax
Payment"). Tenant shall pay the Tax Payment to Landlord monthly based on
Landlord's reasonable estimates of the Taxes, subject to adjustment from time to
time upon determination of the actual amount of the Taxes. For the purposes of
this Lease, "Tenant's Pro Rata Share" shall be 10.92%.

         B. Change in Method of Taxation. If at any time during the Term of this
Lease, the present method of taxation is changed so that in lieu of the whole or
any part of any taxes, assessments or charges levied, assessed or imposed upon
real estate and the improvements thereon, there is levied, assessed or imposed
on Landlord a capital levy or other tax directly on the rents received therefrom
and/or a franchise tax assessment, levy or charge measured by or based, in whole
or in part, upon such rents for the present or any future building or buildings
on the property on which the Building is located or any other tax or assessment,
levied or assessed in lieu of any present taxes, then all such taxes,
assessments, levies, or charges will be deemed to be included within the term
"Taxes" for the purposes hereof. In the event any such tax cannot legally be
reimbursable by the Tenant, Landlord will have the option to terminate this
Lease.

         C. Personal Property Taxes. Tenant shall pay prior to delinquency all
taxes assessed against and levied upon leasehold improvements, trade fixtures,
furnishings, equipment and all other personal property of Tenant contained in
the Premises or elsewhere. Tenant shall cause said leasehold improvements, trade
fixtures, furnishings, equipment and all other personal property to be assessed
and billed separately from the real property of Landlord. If any of Tenant's
said personal property shall be assessed with Landlord's real property, Tenant
shall pay Landlord the taxes so attributable to Tenant within ten (10) days
after receipt of a written statement setting forth the taxes applicable to
Tenant's property.

3.5      Tenant's Payment of Landlord's Insurance (included in the Base Rent).

         Intentionally omitted.

3.6      Late Charges and Interest.

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         A. Tenant hereby acknowledges that late payment by Tenant to Landlord
of Base Rent, Additional Rent or any other sums due hereunder shall cause
Landlord to incur costs not contemplated by this Lease, the exact amount of
which will be extremely difficult to ascertain. Such costs include, but are not
limited to, processing and accounting charges, and late charges which may be
imposed on Landlord by the terms of any mortgage or trust deed covering the
Premises. Accordingly, if any installment of Base Rent, Additional Rent or any
other sum due from Tenant, shall not be received by Landlord or Landlord's
designee within ten (10) days after the date any such payment becomes due, then
Tenant shall pay to Landlord a late charge equal to five percent (5%) of such
overdue amount. The parties hereby agree that such late charge represents a fair
and reasonable estimate of the cost Landlord will incur by reason of late
payment by Tenant. Acceptance of such late charge by Landlord shall in no event
constitute a waiver of Tenant's default with respect to such overdue amount, nor
prevent Landlord from exercising any of the other rights and remedies granted
hereunder.

         B. Tenant shall be obligated to pay to Landlord interest at the rate of
twelve percent (12%) per annum or the maximum legal rate which Tenant may
contract for in Massachusetts, whichever is less, on all sums above specified
and on all sums and charges Tenant is obligated to pay under the terms of this
Lease from the date said sums and charges become due and remain unpaid until the
date said sums and charges are paid in full.

3.7      Consumer Price Index Increase to Base Rent.

         The Base Rent is based upon the current Revised Consumer Index for
Urban Wage Earners and Clerical Workers: all items index (1982-4-100)("Consumer
Price Index") published by the Bureau of Labor Statistics, United States
Department of Labor (the "Bureau") for the Lowell, Massachusetts/Manchester, New
Hampshire statistical region. The basic index ("Basic Index") is the Consumer
Price Index published for the last month before the commencement of each Lease
Year. The "Current Index" shall mean the published Consumer Price Index for the
same month in the then most recently ended Lease Year (defined below). If the
Current Index for any Lease Year is greater than the Basic Index, than the
annual Base Rent for the for the succeeding Lease Year shall be adjusted on the
first day of the succeeding Lease Year so that it equals the sum of (1) product
of (A) the annual Base Rent scheduled for such Lease Year, multiplied by (B) a
fraction, the numerator of which is the Current Index and the denominator of
which is Basic Index and Landlord shall provide notice thereof to Tenant on or
before the date of such increased obligation; however the Base Rent for any
Lease Year shall never be less than the greater of the Base Rent for the
previous Lease Year or the scheduled Base Rent for such Lease Year. In addition,
the Base Rent for any Lease Year shall never exceed a cap of 2.5% of the Base
Rent for the previous Lease Year or the scheduled Base Rent for the previous
Lease Year. The term "Lease Year" shall mean any period of 12 months commencing
on the first day of the first full month of the Term or any anniversary of such
date, or if fewer than 12 months remain in the Term after such anniversary, the
period commencing on such anniversary date through the last day of the Term. If
the Consumer Price Index is converted to a different standard reference base or
otherwise revised, the determination of the Consumer Index shall be made with
the use of such conversion factor, formula, or table for converting the Consumer
Price Index as may be published by the Bureau, or, if the Bureau does not
publish same, then with the use of such

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conversion  factor,  formula,  or  table  as  is  published  by  any  nationally
recognized publisher of similar statistical  information.  If the Consumer Price
Index ceases to be  published,  then  Landlord may  substitute  for the Consumer
Price Index any independently published index of similar type.

                              ARTICLE IV: UTILITIES

Tenant will pay all charges incurred or billed for all water, sewer, gas,
heating fuel, electricity, telephone and all other utility services used on or
from the Premises and any maintenance charges for utilities, and will furnish
all electrical light bulbs and tubes. If any such utility services are not
separately metered to Tenant, the cost thereof shall be separately billed to
Tenant by Landlord, such bills payable by Tenant on each rental payment date. In
addition, Tenant will pay, as Additional Rent, Tenant's Pro Rata Share of all
such utility bills and services used on or from all common areas constituting
portions of the Property. Landlord will in no event be liable for any injury,
loss or damage caused by interruption or failure of utility services to the
Premises nor shall such interruption or failure terminate, cancel, affect or
modify this Lease. Notwithstanding anything in the foregoing to the contrary,
Tenant's obligation to pay for utility bills and services used on or from the
common areas shall not exceed the sum of $5,360.00 for the first Lease Year,
compounded at five per cent (5%) for each succeeding Lease Year.

                           ARTICLE V: SECURITY DEPOSIT

         Tenant will deposit with Landlord upon execution of this Lease the sum
of $7,370.00 as security for Tenant's faithful performance of Tenant's
obligations hereunder (the "Security Deposit"). If Tenant fails to pay Base
Rent, Additional Rent or any other charges due hereunder, or otherwise defaults
with respect to any provisions of this Lease, after notice and the expiration of
applicable cure periods, Landlord may use, apply or retain all or any portion of
the Security Deposit for the payment of any Base Rent, Additional Rent or other
charge in default or for the payment of any other sum to which Landlord may
become obligated to pay by reason of Tenant's default, or to compensate Landlord
for any loss or damage which Landlord may suffer thereby. If Landlord so uses or
applies all or any portion of the Security Deposit, Tenant will, within thirty
(30) days after written demand therefor, deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to the full amount hereinabove stated
and Tenant's failure to do so will be a material breach of this Lease and shall
entitle Landlord to exercise any and all remedies set forth herein. Landlord
will not be required to retain the Security Deposit in a separate escrow account
nor will Tenant be entitled to interest on the Security Deposit. If Tenant
performs all of Tenant's obligations hereunder, the Security Deposit, or so much
as has not been applied by Landlord, will be returned to Tenant within fifteen
(15) days after the expiration or earlier termination of the Lease. In the event
of a sale of the Premises, the Landlord may transfer the balance of the Security
Deposit, if any, to the purchaser and shall thereupon be released from all
liability for the return of the Security Deposit and the Tenant will look solely
to said purchaser for the return thereof. Landlord agrees to notify the Tenant
in writing of any transfer of the Security Deposit identifying the person or
entity subsequently responsible for the Security Deposit.

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Tenant hereby agrees not to look to the  mortgagee,  as mortgagee,  mortgagee in
possession,  or successor in title to the property,  for  accountability for the
Security  Deposit unless the Security Deposit has actually been received by said
mortgagee as security for Tenant's performance under this Lease.

                                 ARTICLE VI: USE

6.1      Use.

         The Premises shall be used and occupied only for general office
purposes and for no other use or purpose.

6.2      Compliance with Law.

         Tenant shall, at Tenant's expense, comply promptly with all applicable
statutes, ordinances, rules, regulations, orders and requirements in effect
during the Term or any part of the Term hereof regulating the use by Tenant of
the Premises and will, at Tenant's expense, obtain any and all licenses and
permits necessary for any such use. Tenant shall not use or permit the use of
the Premises in any manner that will tend to create waste or a nuisance, or that
will be unlawful, improper, noisy or offensive or which shall tend to
unreasonably disturb other tenants of the Building.

6.3      Hazardous Use.

         Tenant shall not receive, store or otherwise handle any product,
material or merchandise which is explosive or highly flammable or permit the
Premises to be used for any purpose which would render the insurance thereon
void or cause an increase in the premiums for such insurance or make the
insurance risk more hazardous. Tenant shall on demand reimburse Landlord, and
all other tenants, any and all extra insurance premiums caused in any way by
Tenant's use of the Premises.

6.4      Landlord's Rules and Regulations.

         Tenant shall faithfully observe and comply with, and cause its
employees, agents and invitees to observe and comply with, the rules and
regulations that Landlord shall from time to time promulgate. A copy of
Landlord's rules and regulations in effect as of the date hereof is attached
here to as Exhibit "C". Landlord reserves the right from time to time to make
all reasonable modifications to said rules and regulations. The additions and
modifications to Landlord's rules and regulations shall be binding upon Tenant
upon delivery of a copy of them to Tenant. Landlord shall not be responsible to
Tenant for the nonperformance of any of said rules and regulations by any other
tenants or occupants of the Building. In the event of a conflict between the
rules and regulations and the Lease, the terms of the Lease shall control.

6.5      Common Areas.

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         Landlord grants to Tenant, during the Term of this Lease, a license to
use all areas and facilities outside the Premises that are provided and
designated for the general use and convenience of Tenant and the other tenants
of the Building including sidewalks, landscaped areas, roadways and parking
areas (the "Common Areas"); provided, however, that Tenant may only use up to 20
parking spaces, which shall be designated for use by tenants only, all on a
non-exclusive basis.

                             ARTICLE VII: INSURANCE

7.1      Tenant's Insurance.

         Tenant, at its own expense, shall provide and keep in force with
companies reasonably acceptable to Landlord public liability insurance for the
benefit of Landlord and Tenant jointly against liability for bodily injury and
property damage in the amount at the beginning of the Term of not less than
$2,000,000.00 combined single limit (which may be by virtue of an umbrella
policy). Landlord hereby consents to the Hartford Company as Tenant's insurer,
and shall not withhold consent to any insurer with a rating at least as good as
The placeCityHartford as of the date of this Lease. Tenant shall keep all of
Tenant's fixtures, furniture, furnishings, and equipment insured against loss or
damage by fire or other hazards included within the usual "all risk" insurance
in an amount not less than 100% of the full insurable replacement value thereof.
Tenant shall furnish Landlord with certificates of such policies within thirty
(30) days after the Commencement Date of this Lease and whenever required shall
satisfy Landlord that such policies are in full force and effect. All such
policies shall be obtained from responsible companies qualified to do business
in the placePlaceTypeCommonwealth of PlaceNameMassachusetts and in good standing
therein and shall be in a form reasonably approved by Landlord. Such policies
shall name Landlord and Landlord's first mortgagee as additional insureds and
shall be primary and non-contributing with any insurance carried by Landlord.
All such policies shall further provide that such policies shall not be
cancelled or altered without at least thirty (30) days prior written notice to
Landlord.

7.2      Waiver of Subrogation.

         Insofar as, and to the extent that, the following provision may be
effective without invalidating or making it impossible to secure insurance
coverage obtainable from responsible insurance companies doing business in the
locality in which the Property is located (even though an extra premium may
result therefrom), Landlord and Tenant mutually agree that, with respect to any
hazard or casualty, the loss from which is covered by insurance then being
carried by them, respectively, the party carrying such insurance and suffering
such loss releases the other of and from any and all claims with respect to such
loss to the extent of the insurance proceeds paid with respect thereto; and they
further mutually agree that their respective insurance companies shall have no
right of subrogation against the other on account thereof.

7.3      Landlord's Insurance

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         Landlord agrees to maintain in full force, from the date upon which
Tenant first enters the Premises for any reason, throughout the Term of this
Lease, and thereafter so long as Tenant is in occupancy of any part of the
Premises; (a) commercial general liability and property damage insurance
applicable to the Property and its common areas with broad form endorsement
(including contractual liability, independent contractor's hazard and completed
operations coverage) in the amount of $1,000,000 per occurrence/$2,000,000
aggregate (combined single limit); and (c) a policy of insurance covering the
Building, including the improvements thereto, for direct risk of physical loss,
with full extended coverage, in an amount and value not less than the full
replacement value of the Property. Upon request, Landlord shall promptly deliver
to Tenant certificates evidencing such policies.

                      ARTICLE VIII: MAINTENANCE AND REPAIRS

8.1      Landlord's Obligations.

         Within a reasonable time following the earlier of receipt of written
notice from Tenant of the necessity therefore or actual notice, Landlord shall
make necessary repairs and replacements to maintain the common areas, parking
lots, roof, foundations, exterior walls, beams, girders, load-bearing walls, and
other structural components of the Premises and the Building ("Building
Structure"), and except to the extent it is the obligation of the Tenant as
hereafter set forth, the plumbing, electrical, elevator, emergency, heating,
ventilating, air conditioning and other mechanical systems and equipment of the
Building, ("Building Systems"), in good condition and repair. "Structure" for
purposes of this Lease shall mean and include only the following: roof framing
and roof (specifically excluding without limitation the ceiling) and bearing
columns and bearing walls (specifically excluding without limitation the
interior surfaces thereof).

         Provided, Landlord uses diligent efforts not to interfere with Tenant's
use and enjoyment of the Premises, Landlord shall not be liable to Tenant for
any compensation, nor shall Tenant be entitled to any reduction of Base Rent or
Additional Rent, by reason of inconvenience or annoyance or for loss of business
arising from the necessity of Landlord's entering the Premises for any of the
purposes in this Lease authorized, or for repairing the Premises or any portion
of the Building, however the necessity may occur, except to the extent due to
the negligence or willful misconduct of Landlord. In case Landlord is prevented
or delayed from making any repairs, alterations or improvements, or furnishing
any services or performing any other covenant or duty to be performed on
Landlord's part, by reason of any cause reasonably beyond Landlord's control,
Landlord shall not be liable to Tenant therefore, nor shall Tenant be entitled
to any abatement or reduction of Base Rent or Additional Rent by reason thereof,
nor shall the same give rise to a claim in Tenant's favor that such failure
constitutes actual or constructive, total or partial, eviction from the
Premises. In no event shall either party be liable for indirect or consequential
damages.

         Landlord reserves the right to stop any service or utility system, when
necessary by reason of accident or emergency, or until necessary repairs have
been completed, provided, however, that in each instance of stoppage, Landlord
shall exercise reasonable diligence to

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eliminate the cause thereof. Except in case of emergency repairs,  Landlord will
give Tenant reasonable advance notice of any contemplated  stoppage and will use
reasonable  efforts  to avoid  unnecessary  inconvenience  to  Tenant  by reason
thereof.

8.2      Tenant's Obligations.

         A. Tenant shall, at its sole cost and expense and without any cost to
Landlord, keep in good order, condition and repair the Premises, and all utility
equipment used exclusively for the Premises (including all portions of
electrical and mechanical systems located within the Premises or servicing the
Premises exclusively) and all utility lines to the point of connection for
Tenant, at all times during the Term of this Lease, unless specifically made
Landlord's responsibility under Section 8.1 above Tenant's responsibility
hereunder shall include, without limitation and at its sole cost, maintenance,
repair and replacement of the Building Systems exclusively serving the Premises
(except for the heating, ventilating and air conditioning equipment), fixtures,
glass (with glass of the same size and quality), floor covering and ceiling
materials, doors and door hardware and the decoration of the interior of the
Premises. If Tenant refuses or neglects to make or perform such replacements,
repairs, or maintenance, in a manner reasonably satisfactory to Landlord,
Landlord shall have the right, upon giving Tenant reasonable written notice of
its election to do so except in situations deemed to be emergency situations by
Landlord, to make such replacement or repairs or perform such maintenance on
behalf of and for the account of Tenant, and Tenant shall pay Landlord's
reasonable cost of such work, as Additional Rent, promptly upon receipt of a
bill therefore.

         B. Tenant shall be responsible for the maintenance, at its sole cost
and expense, of the so-called VAV boxes that serve the Premises.

8.3      Snow Removal and Grounds Care.

         At Landlord's sole cost and expense, the removal of snow and ice from
the parking areas and access drives bordering upon the Premises shall be the
Landlord's responsibility. The removal of snow and ice from the sidewalks,
loading docks and/or walkways bordering upon the Premises shall be the
Landlord's responsibility. The care and maintenance of the grounds, including
all parking areas, sidewalks, lawns, trees, shrubs and painted areas bordering
upon the Premises shall be the Landlord's responsibility.

8.4      Cleaning Services and Trash Removal.

         The Tenant shall be responsible, at its sole cost, for providing
cleaning services to the Premises and trash removal from the Property. Landlord
at its sole cost and expense shall be responsible for cleaning the common areas.

                        ARTICLE IX: ALTERATIONS AND SIGNS

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         Tenant will not make any alterations, additions or improvements to the
Premises or install any signs upon the exterior of the Premises without on each
occasion the prior written consent of the Landlord, which shall not be
unreasonably withheld or delayed. All permitted alterations and signs shall be
at Tenant's sole cost and expense. All alterations or additions made by Tenant
shall be performed in a good and workmanlike manner using materials of equal or
better quality than original construction, and shall be in compliance with all
the applicable laws, ordinances, orders, rules, regulations and requirements
applicable thereto and shall be performed only by contractors or mechanics
approved by Landlord, which shall not be unreasonably withheld or delayed. All
such contractors and mechanics shall carry adequate liability insurance,
builder's risk insurance and workmen's compensation insurance in amounts and
companies approved by Landlord. Landlord shall be presented with certificates of
same prior to the commencement of any work. Furthermore, as a condition to such
consent, in the event that the cost of such alterations shall exceed
$100,000.00, Landlord may require Tenant to provide to Landlord, at Tenant's
expense, a completion bond in form and substance satisfactory to Landlord.

                              ARTICLE X: INSPECTION

         Landlord and Landlord's agents and representatives will have the right
to enter and inspect the Premises at any reasonable time during business hours
(and all other times in case of emergency) for the purpose of ascertaining the
condition of the Premises, curing any default on the part of the Tenant or
making repairs to the Premises. During the one year period prior to the end of
the Term hereof, Landlord and Landlord's agents and representatives will have
the right to enter the Premises at any reasonable time during business hours for
the purpose of showing the Premises and will have the right to erect on the
Premises a suitable sign indicating that the Premises are available. Any right
of entry hereunder shall be exercised using diligent efforts not to interfere
with Tenant's use and occupancy of the Premises. Due to confidentiality concerns
of Tenant, any such entry shall be with an escort provided by Tenant.

                      ARTICLE XI: ASSIGNMENT AND SUBLETTING

         Tenant shall not assign, transfer, mortgage or pledge this Lease or
sublet the whole or any part of the Premises without the prior written consent
of Landlord, which shall not be unreasonably withheld or delayed for more than
ten (10) days. Without limiting the generality of the foregoing, Landlord may
specifically withhold consent if. (i) Tenant is then in default beyond notice
and cure periods hereunder; (ii) any notice of termination of this Lease or
termination of Tenant's possession shall have been given under Section XX
hereof; (iii) the portion of the Premises which Tenant proposes to sublease,
including the means of ingress and egress thereto and the proposed use thereof,
and the remaining portion of the Premises will violate any city, state or
federal law, ordinance or regulation, including, without limitation, any
applicable building code or zoning ordinances; (iv) the proposed use of the
Premises by the subtenant or assignee does not conform with the permitted use
set forth in Section 6.1 hereof; (v) in the reasonable judgment of Landlord the
proposed subtenant or assignee is engaged in a business which would be
deleterious to the reputation of the Building, or the subtenant or assignee is
not sufficiently financially responsible to

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perform its  obligations  under the proposed  sublease or  assignment;  (vi) the
proposed assignee or subtenant is a governmental or  quasi-governmental  agency;
(vii)  the  stature,  reputation  or  financial  capability  of the  prospective
assignee or subtenant is not at least  equivalent to the stature,  reputation or
financial  capacity  of Tenant as of the date  hereof;  or (viii)  the  proposed
assignee or subtenant's projected use of the Premises involves the use, storage,
generation  or disposal of Hazardous  Material as defined in Article XII of this
Lease.  Notwithstanding any permitted  assignment or subletting,  Tenant will at
all times remain liable for the payment of all Base Rent,  Additional  Rent, and
any other  charges due  hereunder  and for the  compliance  with all of Tenant's
other  obligations  under the terms,  provisions and covenants of this Lease. In
the  event of a  default  under the terms of this  Lease  after  notice  and the
expiration of applicable  cure periods,  if the Premises or any part thereof are
then  assigned or sublet,  Landlord,  in addition to any other  remedies  herein
provided,  or provided by law, may at its option collect  directly from assignee
or subtenant all rents becoming due to Tenant under such  assignment or sublease
and apply such rent  against  any sums due it by Tenant  hereunder,  and no such
collection  shall be construed  to  constitute a novation or a release of Tenant
from the further  performance of its obligations  hereunder.  Landlord will have
the right to assign any of its rights and  obligations  under this Lease. If the
rent and other sums and all considerations  received by Tenant on account of any
such  sublease or  assignment  shall exceed the Base Rent,  Additional  Rent and
other charges allocable to the Premises or to the space subject to the sublease,
as the case may be, Tenant shall pay to Landlord,  as Additional Rent hereunder,
fifty percent (50%) of such excess, monthly as received by Tenant, less Tenant's
reasonable  expenses  incurred  in  respect  of  such  sublease  or  assignment,
including  brokerage  commissions  to a licensed third party real estate broker,
advertising  and  reasonable  attorney's  fees,  and all of repairs or fit-up or
alterations to the Premises for such subtenant or assignee.  Notwithstanding the
foregoing,  Tenant may assign  this  Lease.  or sublet all or any portion of the
Premises, without the consent of Landlord, but only following fifteen days prior
written  notice  to  Landlord,   and  provided  the  assignee  or  subtenant  is
sufficiently financially responsible to perform its obligations under this Lease
or the proposed  sublease,  (i) to any  corporation or other entity into or with
which Tenant may be merged or  consolidated,  (ii) to any  corporation  or other
entity  to which all or  substantially  all of  Tenant's  assets or stock may be
transferred,  and (iii) to any  corporation  or other entity that  controls,  is
controlled by, or is under common control with Tenant.

                        ARTICLE XII: HAZARDOUS MATERIALS.

12.1 Tenant shall not cause or permit any Hazardous Material to be brought upon,
kept, used, stored, generated or disposed of on, in or about the Premises by
Tenant, its agents, employees, contractors, or invitees, without first obtaining
Landlord's written consent.

12.2 Any Hazardous Material permitted on the Premises as provided in Section
12.1, and all containers therefore, shall be used, kept, stored, and disposed of
in a manner that complies with all federal, state, and local laws or regulations
applicable to this Hazardous Material.

12.3 Tenant shall not discharge, leak, or emit, or permit to' be discharged,
leaked, or emitted, any material into the atmosphere, ground, sewer system, or
any body of water, if that material (as is reasonably determined by the
Landlord, or any governmental authority) does

                                       11
<PAGE>

or may pollute or contaminate the same, or may adversely  affect (a) the health,
welfare, or safety of persons,  whether located on the Premises or elsewhere, or
(b) the  condition,  use,  or  enjoyment  of the  Building  or any other real or
personal property.

12.4 At the commencement of each year of the Term, Tenant shall disclose to
Landlord the names and approximate amounts of all Hazardous Material that Tenant
intends to store, use, or dispose of on the Premises in the coming year. In
addition, at the commencement of each year of the Lease Term, beginning with the
second year of the Lease Term, Tenant shall disclose to Landlord the names and
amounts of all Hazardous Materials that were actually used, stored, or disposed
of on the Premises if those materials were not previously identified to Landlord
at the commencement of the previous year.

12.5 As used herein, the term "Hazardous Material" means (a) any "hazardous
waste" as defined by the Resource Conservation and Recovery Act of 1976, as
amended from time to time, and regulations promulgated thereunder; (b) any
"hazardous substance" as defined by the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended from time to time, and
regulations promulgated thereunder; (c) any oil, petroleum products, and their
by-products; (d) any substance that is toxic, ignitable, reactive or corrosive;
and (e) any substance that is or becomes regulated by any federal, state, or
local governmental authority.

12.6 Tenant hereby agrees that it shall be fully liable for all costs and
expenses related to the use, storage and disposal of Hazardous Material kept on
the Premises by the Tenant, and the Tenant shall give immediate notice to the
Landlord of any violation or potential violation of the provisions of this
Article XII. Tenant shall defend, indemnify, and hold harmless Landlord and its
agents, from and against any and all claims, demands, penalties, fines,
liabilities, settlements, damages, costs, or expenses (including, without
limitation, attorneys' and consultants' fees, court costs, and litigation
expenses) of whatever kind or nature, known or unknown, contingent or otherwise,
allegedly or actually arising out of or in any way related to (a) the presence,
disposal, release, or threatened release of any such Hazardous Material in the
Premises (to the extent not preexisting the Commencement Date) that is on, from,
or affecting the soil, water, vegetation, buildings, personal property, persons,
animals, or otherwise; (b) any personal injury (including wrongful death) or
property damage (real or personal) arising out of or related to that Hazardous
Material referenced above; (c) any lawsuit brought or threatened, settlement
reached, or government order relating to that Hazardous Material referenced
above; or (d) any violation of any laws applicable thereto. This indemnification
includes, without limitation, any and all costs incurred because of any
investigation of the site or any cleanup, removal, or restoration mandated by a
federal, state, or local agency or political subdivision related to the
condition described above. Without limitation of the foregoing, if Tenant causes
or permits the presence of any Hazardous Material on the Premises and that
results in contamination, Tenant shall promptly, at its sole expense, take any
and all necessary actions to return the Premises to the condition existing prior
to the presence of any such Hazardous Material on the Premises. Tenant shall
first obtain Landlord's approval for any such remedial action. The provisions of
this Section 12.6 shall be in addition to any other obligations and liabilities
Tenant may have to Landlord at

                                       12
<PAGE>

law or equity and shall survive the transactions  contemplated  herein and shall
survive the expiration or earlier termination of this Lease.

                             ARTICLE XIII: INDEMNITY

13.1 Except to the extent caused by Landlord's negligence or willful misconduct
and subject to Article 7.2, Tenant will defend, indemnify and save harmless
Landlord from and against any and all liabilities, obligations, claims, damages,
penalties, causes of action, costs and expenses (including, without limitation,
reasonable attorneys' fees and expenses) imposed upon, incurred by or asserted
against Landlord arising from Tenant's use or occupancy of the Premises or any
breach or default by Tenant of its obligations hereunder or arising from the
negligence or willful omission of Tenant, its agents, contractors, employees or
invitees. Tenant shall save Landlord harmless from (i) all loss and damage to
personal property, fixtures, equipment and inventory located within the Premises
occasioned by the escape of water or by the bursting of pipes, and (ii) any
nuisance made or suffered on the Premises.

13.2 Subject to Article 7.2, Tenant shall also save Landlord harmless and
indemnified, to the extent permitted by law, from and against any and all
claims, actions, loss, damage, liability and expense in connection with loss of
life, personal injury and/or damage to property arising out of or resulting from
any occurrence in, upon or at the Premises or the occupancy or use of the
Premises or any part thereof, or anywhere if caused wholly or in part by any
act, neglect or failure to perform the obligations imposed by this Lease or any
breach thereof, or omission of Tenant, its officers, agents, employees,
subtenants, licensees, concessionaires, or others occupying space in the
Premises. If Landlord shall be threatened with or made a party to any litigation
commenced by or against Tenant, or with respect to any matter described above,
then Tenant shall protect and hold Landlord harmless and indemnified and shall
defend Landlord with counsel reasonably acceptable to Landlord, or, at
Landlord's option, shall advance all costs, expenses and reasonable attorney's
fees incurred or paid by Landlord in connection with such litigation.

13.3 Except to the extent that such liability is caused by the negligence or
tortuous act or omission of Tenant, its agents, contractors or employees, and
subject to Articles 7.2 and XIV, Landlord shall defend, indemnify and hold
Tenant harmless from all costs, expenses, or claims arising from the following:
(i) any willful, negligent or tortuous act or omission on the part of Landlord,
its agents, contractors, or employees; or (ii) any failure on the part of
Landlord to perform in accordance with its obligations under this Lease.

                ARTICLE XIV: EXEMPTION OF LANDLORD FROM LIABILITY

         The term "Landlord" as used in this Lease, so far as the covenants or
obligations on the part of Landlord are concerned, shall be limited to mean and
include only the owner or owners at the time in question of the Premises, and in
the event of any transfer or transfers of

                                       13
<PAGE>

title thereto,  Landlord named herein (and in case of any subsequent transfer or
conveyance, the then grantor) shall be automatically relieved from and after the
date of such transfer or conveyance of all liability as respects the performance
of any covenants or obligations on the part of Landlord  contained in this Lease
except for the return of the Security Deposit) thereafter to be performed. It is
expressly  understood  and  agreed  that in the  case of  default  hereunder  by
Landlord,  Tenant  shall look solely to the interest of Landlord in the Premises
and all  available  insurance  proceeds for  satisfaction  of any  obligation of
Landlord to Tenant, and that except for such interest and proceeds,  neither the
Landlord nor anyone claiming under the Landlord shall ever be personally  liable
for  satisfaction  of any such  obligation.  Tenant  hereby agrees that Landlord
shall  not be  liable  for  injury to  Tenant's  business  or any loss of income
therefrom, or for damage to the personal property of Tenant, Tenant's employees,
invitees,  customers,  or any other person in or about the Premises, nor, unless
through  its  negligence  or willful  misconduct,  shall  Landlord be liable for
injury to the person of Tenant,  Tenant's  employees,  agents or contractors and
invitees,  whether  such  damage or injury is caused by or  results  from  fire,
steam,  electricity,  gas,  water  or  rain,  or  from  the  breakage,  leakage,
obstruction or other defects of pipes, sprinklers, wires, appliances,  plumbing,
air  conditioning  or  lighting  fixtures,  or from any cause,  whether the said
damage or injury results from conditions arising upon the Premises or upon other
portions of the  Building,  or from other sources or places,  and  regardless of
whether the cause of such damage or injury or the means of repairing the same is
inaccessible to Landlord or Tenant. Landlord shall not be liable for any damages
arising from any act or neglect of any other tenant, if any, of the Building.

                       ARTICLE XV: LIENS AND ENCUMBRANCES

15.1 Tenant will not do any act which will in any way encumber the title of
Landlord in and to the Premises nor will the interest or estate of Landlord in
the Premises be in any way subject to any claim by way of lien or encumbrance,
whether by operation of law or by virtue of any express or implied contract by
Tenant. Any claim to, or lien upon, the Premises arising from any act or
omission of Tenant will accrue only against the leasehold estate of Tenant and
will be subject and subordinate to the paramount title and rights of Landlord in
and to the Premises.

15.2 Tenant will not suffer or permit any liens to stand against the Premises,
the Building or any part thereof, by reason of any work, labor, services, or
materials done for, or supplied, or claimed to have been done for, or supplied
to Tenant, or anyone holding the Premises, or any part thereof through or under
Tenant. If any such lien is at any time filed against the Premises, or the
Building, Tenant will cause the same to be discharged of record within thirty
(30) days after the date of fling the same, by either payment, deposit or bond.
If Tenant fails to discharge any such lien within such period, then, in addition
to any other right or remedy of Landlord, Landlord may, but will not be
obligated to, procure the discharge of the same by paying the amount outstanding
under said lien, and Tenant shall immediately reimburse Landlord for the amount
paid by Landlord for any of the aforesaid purposes, together with all legal and
other expenses incurred Landlord, including reasonable attorneys' fees, in
defending any such action or in procuring the discharge of such lien, which
reimbursement

                                       14
<PAGE>

from Tenant will become due and payable,  as  Additional  Rent  hereunder on the
date of payment of any such sums by Landlord.

15.3 Nothing in this Lease will be deemed to be, or construed in any way as
constituting the consent or request of Landlord, express or implied, by
inference or otherwise, to any person, firm or corporation for the performance
of any labor or the furnishing of any materials for any construction,
rebuilding, alteration or repair of or to the Premises or any part thereof, nor
as giving Tenant any right, power or authority to contract for or permit the
rendering of any services or the furnishing of any materials which might in-any
way give rise to the right to file any lien against Landlord's interest in the
Premises.

               ARTICLE XVI: DAMAGE OR DESTRUCTION AND CONDEMNATION

16.1     Damage or Destruction of Premises.

         A. If all or a substantial part of the leased Premises is destroyed or
damaged by fire or other unavoidable casualty (a substantial part of the
Premises for the purposes of this Article shall be deemed to be fifty percent
(50%) or more of its insurable value), then Landlord shall within thirty (30)
days after such casualty elect in writing to Tenant to either terminate this
Lease or restore damaged areas. For purposes of this Article, the term Premises
shall be deemed to include all appurtenant parking rights and access to the
Premises.

         B. If Landlord elects to terminate this Lease as aforesaid, the
termination shall be effective as of the time of such casualty; if Landlord
elects to restore damaged areas, it shall commence the restoration of the
Premises within ninety (90) days after such casualty and use its best efforts to
coordinate the activities of contractors and material suppliers to accomplish
the restoration within a period of time commensurate with the degree of damage
sustained. In no event, however, shall Landlord be obligated to use any of its
funds for such restoration other than from applicable fire insurance proceeds.
Notwithstanding the foregoing, Landlord shall not be obliged to repair or
replace Tenant's furniture, furnishings, personal property or equipment and
shall not be obligated to bear the costs of repairing any damage caused by any
act, omission or negligence of Tenant or of Tenant's employees, contractees,
invitees, or licensees, and Landlord may make such repairs at the expense of
Tenant, and the cost thereof shall be collectable as additional rent due
hereunder,

         C. If any such restoration is delayed for causes beyond the control of
Landlord, such as acts of God, war, civil insurrection or public disorder,
strikes, unavailability of construction materials, shortages within the labor
market, or acts of governmental authorities, then in such event, the completion
of such restoration shall be postponed for the period of time equal to the
period of delay caused by such events.

         D. If this Lease is not terminated, a just portion of the rent,
according to the nature and extent of the damage, shall be abated until the
Premises shall have been restored.

         E. Notwithstanding the foregoing, Landlord may, in Landlord's sole
discretion, repair and/or rebuild the Building in the event of either total or
partial destruction. Landlord

                                       15
<PAGE>

will not be obligated to rebuild until the insurance proceeds have been received
and in the event such insurance  proceeds are insufficient to completely rebuild
or restore the Premises,  Landlord,  at Landlord's option, may provide the funds
required to completely rebuild or restore.  If Landlord's  mortgagee applies the
insurance  proceeds to the mortgage  debt,  Landlord shall have no obligation to
rebuild.

         F. In the event that (a) Landlord fails to give written notice within
thirty (30) days of its intention to restore the Premises, or (b) Landlord fails
to restore (or in Landlord's estimate, the time for restoration is expected to
exceed one hundred twenty (120) days the Premises to a condition substantially
suitable for their intended use within One Hundred Twenty (120) days of said
damage or destruction (or within such other period of time as Landlord and
Tenant may agree in writing), unless such damage was due to the willful or
intentional acts of Tenant or Tenant's employees, contractors, invitees, or
licensees, Tenant may elect to terminate this Lease by written notice to
Landlord to be given not later than thirty (30) days after the date last
mentioned.

16.2     Condemnation.

         A. If the Premises shall be completely taken by exercise of eminent
domain, then this Lease shall terminate. If any substantial part of the Premises
shall be taken by exercise of eminent domain or by action of any public or other
authority, then this Lease shall terminate at the election of Landlord, notice
of which election shall be given to Tenant within sixty (60) days of such
taking. If Landlord shall not so elect, then in case of such taking, and in case
of any taking of less than a substantial part of the Premises, a just proportion
of said rent according to the nature and extent of the taking shall be abated,
unless the Landlord shall supply to Tenant equivalent substitute space in the
Building at no additional rent. Landlord reserves and accepts all rights to any
awards of damages in connection with the Premises and the Building and the
leasehold hereby created, accrued or subsequently accruing by reason of anything
lawfully done in pursuance of any public or other authority. Tenant hereby
releases and assigns to Landlord all of Tenant's rights to such awards, and
covenants to deliver such further assignments and assurances thereof as Landlord
may from time to time request. it is agreed and understood, however, that
Landlord does not reserve to itself and Tenant does not assign to Landlord, any
damages payable for (i) moveable equipment installed by Tenant or anybody
claiming under Tenant at its own expense, or (ii) relocation expenses, but in
each case only if and to the extent that such damages are recoverable by Tenant
from such authority in a separate action and without reducing Landlord's award
of damages, or (iii) business interruption or similar damages awarded to Tenant.

         B. Notwithstanding the above, Landlord may, in Landlord's sole
discretion, repair and/or rebuild the Building in the event of either total or
partial taking. Landlord will not be obligated to rebuild until the eminent
domain proceeds have been received and in the event such eminent domain proceeds
are insufficient to completely rebuild or restore the Premises, Landlord, at
Landlord's option, may provide the funds required to completely rebuild or
restore. If Landlord's mortgagee applies the eminent domain proceeds to the
mortgage debt, Landlord shall have no obligation to rebuild.

                                       16
<PAGE>

         C. In the event that a taking of any portion of the Premises by the
exercise of eminent domain (a) materially adversely affects the ability of
Tenant to continue to conduct its business in the portion of the Premises not
taken; or (b) Landlord fails to give written notice within sixty (60) days of
its intention to restore the Premises; or (c) Landlord fails to restore the
Premises to a condition substantially suitable for their intended uses within
One Hundred Twenty (120) days of such taking or fails to supply to Tenant
equivalent substitute space in the Building, Tenant may elect to terminate this
Lease by written notice to Landlord to be given no later than thirty (30) days
after the date last mentioned.

                             ARTICLE XVII: SURRENDER

         Upon the expiration or earlier termination of this Lease for any
reason, Tenant will at once surrender and deliver the Premises, together with
all improvements thereon, to Landlord in good condition and repair, reasonable
wear and tear excepted. Reasonable wear and tear excludes: tears and cuts in
floor coverings; excessive wear of floor coverings because of Tenant's
negligence or failure to use desk and chair pads or otherwise; holes in walls
and doors; and damaged ceiling tiles because of installation of phone lines,
computer lines, or otherwise. All alterations, additions, improvements and
partitions (except Tenant's moveable trade fixtures and signs belonging to
Tenant) erected or installed by Tenant shall remain upon the Premises and will
become the property of Landlord as of the date of such expiration or earlier
termination, unless Landlord gives Tenant notice at the time Landlord consents
thereto that such improvements must be removed, in which case Tenant, at its
expense, shall forthwith remove such improvements and restore the Premises to
their original condition by the date of expiration or earlier termination of
this Lease. Tenant shall remove its moveable fixtures and signs and shall repair
all damage to the Premises caused by such removal. Tenant's failure to remove
all or part of Tenant's trade fixtures and signs upon expiration or earlier
termination shall be deemed an abandonment to Landlord of such trade fixtures
and signs and, if Landlord elects to remove all or any part of said fixtures and
signs, the cost of such removal, including repairing any damage to the Premises
caused by such removal, shall be paid by Tenant. Whether installed by Landlord
or Tenant, all fire alarm systems, burglar alarm systems and any other security
systems affixed to, imbedded in, permanently resting upon, or permanently
attached to any part of the Premises, by means of cement, glue, plaster, nails,
bolts, screws, or any other fastening devices shall, upon the termination of
this Lease, become the property of the Landlord, and shall neither be removed,
altered, damaged nor destroyed by Tenant, but shall remain upon the Premises;
all keys, manuals, and other accessories necessary for the proper operation of
such systems shall likewise become and remain the property of the Landlord and
shall be delivered to the Landlord immediately upon the termination of this
Lease.

                           ARTICLE XVIII: HOLDING OVER

18.1 Any holding over by Tenant of the Premises after the expiration or earlier
termination of this Lease will operate and be construed to be a tenancy from
month to month only at a monthly rental of One Hundred Fifty Percent (150%) of
the last monthly base rental plus all

                                       17
<PAGE>

other Additional Rent payable hereunder, and upon the terms hereof applicable to
month-to-month tenancy.

18.2 Nothing contained in this section is to be construed to give Tenant the
right to hold over at any time and Landlord may exercise any and all remedies at
law or in equity to recover possession of the Premises and damages resulting
from any such holding over.

                              ARTICLE XIX: DEFAULT

         The occurrence of any one or more of the following events ("Events of
Default") will constitute a default hereunder:

A. Tenant abandons the Premises.

B. Tenant defaults in any payment due hereunder and such default continues for
ten (10) days after notice from Landlord that such amount is past due.

         C. Tenant fails to observe or perform any of the covenants, conditions
or provisions of this Lease to be observed or performed by Tenant other than
non-payment of sums due hereunder, and Tenant fails to cure such default within
thirty (30) days after notice from Landlord as to existence of such default, but
if such failure is of such character that Tenant cannot reasonably effect a
remedy within such 30-day period, Tenant shall fail to commence such remedy
promptly and prosecute such remedy to completion with diligence and continuity.

         D. Tenant petitions to be, or is declared bankrupt, or insolvent
according to law, or if a receiver be appointed for Tenant, or for all or a
substantial portion of its property, or if an assignment for the benefit of
creditors is made by Tenant.

                              ARTICLE XX: REMEDIES

20.1     Right to Terminate.

         If an Event of Default shall have occurred, Landlord shall have the
right at its election, then or at any time thereafter, to give Tenant written
notice of Landlord's election to terminate this Lease on a date specified in
such notice. Upon the giving of such notice, this Lease and the estate hereby
granted shall expire and terminate on such date as fully and completely and with
the same effect as if such date were the date hereinbefore fixed for the
expiration of the Term, and all rights of Tenant hereunder shall expire and
terminate, but Tenant shall remain liable as hereinafter provided.

20.2     Right of Re-Entry.

         If any Event of Default shall have occurred, Landlord shall have the
immediate right, whether or not this Lease shall have been terminated pursuant
to Section 20.1, to re-enter and repossess the Premises or any part thereof in
the name of the whole and repossess the same

                                       18
<PAGE>

as of its former  estate by  summary  proceedings,  ejectment  or  otherwise  in
compliance with laws and the right to remove all persons and property therefrom.
Landlord  shall  be under  no  liability  for or by  reason  of any such  entry,
repossession  or  removal.  No such  re-entry  or  taking of  possession  of the
Premises by Landlord shall be deemed to waive or prejudice any remedies provided
to Landlord  hereunder,  nor be construed as an election on  Landlord's  part to
terminate this Lease unless a written notice of such election be given to Tenant
pursuant to Section 20.1 or unless the termination of this Lease be decreed by a
court of competent jurisdiction.

20.3     Right to Relet.

         At any time or from time to time after the repossession of the Premises
or any part thereof pursuant to Section 20.2, whether or not this Lease shall
have been terminated pursuant to Section 20.2, Landlord may (but shall be under
no obligation to) relet the Premises or any part thereof for the account of
Tenant, in the name of Tenant or Landlord or otherwise, without notice to
Tenant, for such term or terms (which may be greater or less than. the period
which would otherwise have constituted the balance of the Term) and on such
conditions (which may include concessions or free rent) and for such uses as
Landlord, in its absolute discretion, may determine, and Landlord may collect
and receive any rents payable by reason of such reletting. Landlord shall not be
responsible or liable for any failure to relet or to collect any rent due upon
such reletting.

20.4     Tenant to Remain Liable.

         No expiration or termination of this Lease pursuant to Section 20.1, by
operation of law or otherwise, and no repossession of the Premises or any part
thereof pursuant to Section 20.2 or otherwise, and no reletting of the Premises
or any part thereof pursuant to Section 20.3, shall relieve Tenant of its
liabilities and obligations hereunder, all of which shall survive such
expiration, termination, repossession or reletting.

20.5     Current Damages.

         In the event of any expiration or termination of this Lease or
repossession of the Premises or any part thereof by reason of the occurrence of
an Event of Default, Tenant will pay to Landlord the Base Rent, Additional Rent
and other sums required to be paid by Tenant for the period to and including the
date of such expiration, termination or repossession; and thereafter, until the
end of what would have been the Term in the absence of such expiration,
termination or repossession, and whether or not the Premises or any part thereof
shall have been relet, Tenant shall be liable to Landlord for, and shall pay to
Landlord, as liquidated and agreed current damages, the Base Rent, Additional
Rent and other sums which would be payable under this Lease by Tenant in the
absence of such expiration, termination or repossession, less the net proceeds,
if any, of any reletting effected for the account of Tenant pursuant to Section
20.3, after deducting from such proceeds all of Landlord's expenses reasonably
incurred in connection with such reletting (including, without limitation, all
repossession costs, brokerage and management commissions, legal expenses,
attorney's fees, employee expenses, and the costs of any decorating, repairs,
changes, alterations or additions

                                       19
<PAGE>

in or to the Premises that may be necessary or convenient). Tenant will pay such
current  damages on the days on which Base Rent  would have been  payable  under
this Lease in the absence of such expiration,  termination or repossession,  and
Landlord shall be entitled to recover the same from Tenant on each such day.

20.6     Final Damages.

         At any time after any such expiration or termination of this Lease or
repossession of the Premises or any part thereof by reason of the occurrence of
an event of default, whether or not Landlord shall have collected any current
damages pursuant to Section 20.5, Landlord shall be entitled to recover from
Tenant, and Tenant will pay to Landlord on demand, as and for liquidated and
agreed final damages for Tenant's default after notice and the expiration of
applicable cure periods, and in lieu of all current damages beyond the date of
such demand (it being agreed that it would be impracticable or extremely
difficult to fix the actual damages), an amount equal to the excess, if any, of
(a) the Base Rent, Additional Rent and other sums which would be payable under
this Lease from the date of such demand (or, if it be earlier, the date to which
Tenant shall have satisfied in full its obligations under Section 20.5 to pay
current damages) for what would be the then unexpired Term in the absence of
such expiration, termination or repossession (assuming for purposes hereof that
Tenant's Proportionate Share of Taxes and Insurance are increasing at a
consistent rate, and the CPI shall increase by 2.5 percent (2.5%) each calendar
year remaining in the Term), over (b) the then net rental value of the Premises
for the same period. Rental value shall be established by reference to the terms
and conditions upon which Landlord relets the Premises if such reletting is
accomplished within a reasonable period of time after such expiration,
termination or repossession, and otherwise established on the basis of
Landlord's estimates and assumptions of fact regarding market and other relevant
circumstances, which shall govern unless shown to be clearly erroneous. If any
statute or rule of law shall validly limit the amount of such liquidated final
damages to less than the amount above agreed upon, Landlord shall be entitled to
the maximum amount allowable under such statute or rule of law.

20.7     Damages and Proceedings.

         Nothing herein contained shall limit or prejudice the right of Landlord
to prove for and obtain in proceedings under any federal or state law relating
to bankruptcy, insolvency, reorganization, or arrangement, in an amount equal to
the maximum allowed by any statute or rule of law in effect at the time when,
and governing the proceedings in which, the damages are to be proved, whether or
not the amount be greater than the amount of loss or damage referred to above.

20.8     Landlord's Right to Cure.

         Landlord may, but shall not be obligated to, cure any default (after
notice and cure periods) by Tenant at any time, and whenever Landlord so elects,
all costs and expenses paid or incurred by Landlord in curing such default,
including without limitation reasonable attorney's fees, shall be deemed
Additional Rent due on demand with interest as provided in

                                       20
<PAGE>

Section  3.6.  Any such  cure  shall  not be deemed  to waive  such  default  or
otherwise affect any of the Landlord's rights due to such default.

                          ARTICLE XXI: ATTORNEYS' FEES

         If, on account of any breach or default (beyond notice and cure
periods) by Landlord or Tenant in their obligations under the terms and
conditions of this Lease, it becomes necessary or appropriate for the
non-defaulting party to employ or consult with an attorney or attorneys
concerning, or to enforce or defend, any of its rights or remedies hereunder,
the defaulting party agrees to pay all reasonable attorneys' fees so incurred.

                             ARTICLE XXII: NO WAIVER

         The waiver by Landlord or Tenant of any breach of any term, covenant or
condition herein contained will not be deemed to be a waiver of such term,
covenant or condition for any subsequent breach of the same or any other term,
covenant or condition herein contained. The acceptance by Landlord of any
payment of rent or other charges hereunder after the termination of this Lease
by Landlord shall not be deemed to restore this Lease or Tenant's right to
possession hereunder, but will be construed as a payment on account of damages
due from Tenant to Landlord. No remedy hereunder shall be deemed exclusive, but
shall be cumulative with all other remedies at law or equity.

                              ARTICLE XXIII: BROKER

         Landlord and Tenant warrant to one another that each has had no
dealings with any broker or agent in connection with this Lease other than Grubb
& Ellis, whose commission Landlord covenants and agrees to pay. Landlord and
Tenant covenant to pay, hold harmless and indemnify the other arising out of the
breach of their warranty made herein.

                          ARTICLE XXIV: LANDLORD'S LIEN

Intentionally omitted.

                             ARTICLE XXV: MORTGAGES

25.1     Subordination.

         Tenant accepts this Lease subject and subordinate to any mortgage(s)
and/or deed(s) of trust now or at any time hereafter constituting a lien or
charge upon the Premises provided however that if the mortgagee, trustee or
holder of any such mortgage or deed of trust elects to have Tenant's interest in
this Lease be superior to any such instrument, then by notice to Tenant from
such mortgagee, trustee or holder, this Lease will be deemed superior to such

                                       21
<PAGE>

lien, whether this Lease is executed before or after such mortgage or deed of
trust. Tenant will at any time hereafter on demand execute any commercially
reasonable instruments, which may be required by any mortgagee for the purposes
of subjecting and subordinating this Lease to the lien of any such mortgage. In
the event any proceedings are brought for foreclosure or in the event of the
exercise of the power of sale under any mortgage or deed of trust made by
Landlord covering the Premises, or in the event any mortgagee obtains possession
of the Premises by deed in lieu of foreclosure, or in any other similar matter,
the Tenant, at the request of any such mortgagee or purchaser upon any such
foreclosure or sale, will attorn to the mortgagee or the purchaser of the
Premises, and recognize said mortgagee or purchaser as the Landlord under this
Lease. Tenant will, at the request of the Landlord, execute a document, in form
proper for recording such agreement to attorn, which document shall provide that
the mortgagee will not interfere with or disturb Tenant's possession of the
premises demised under the Lease, so long as Tenant pays the rent stipulated in
the Lease and performs all other terms and conditions thereof.  (See Exhibit D -
"Example of Typical Subordination and Attornment Agreement")

25.2     Notice to Mortgagee.

         In the event of any default on the part of Landlord, Tenant will give
notice by registered or certified mail to any beneficiary of a deed of trust or
mortgagee of a mortgage covering the Premises whose address shall have been
furnished it, and shall offer such beneficiary or mortgagee a reasonable
opportunity to cure the default, including a reasonable time to obtain
possession of the Premises by power of sale or a judicial foreclosure, if such
should prove necessary to effect a cure.

25.3     Request by Mortgagee.

         In the event that the holder of any mortgage or prospective mortgage on
the Premises shall request any modification of any of the provisions of this
Lease not having a material adverse effect on Tenant's rights, Tenant agrees
that Tenant will enter into a written agreement in recordable form with such
holder or prospective holder, which shall effect such modification and shall
provide that such modification shall become effective and binding upon Tenant
and shall have the same force as an amendment to this Lease in the event of a
foreclosure or other similar action taken by such holder or prospective holder.
A provision directly relating to the rents payable hereunder, the duration of
time hereof, the size, use, or location of the Premises shall be deemed a
provision having a material adverse effect on Tenant's rights.

25.4     Assignment of Rights.

         With respect to any assignment by Landlord of Landlord's interest in
this Lease, or the rents payable hereunder, conditional in nature or otherwise,
which assignment is made to the holder of any mortgage on the Premises, the
Building or the Property, Tenant agrees that the execution thereof by Landlord,
and the acceptance thereof by the holder of such mortgage, shall never be deemed
an assumption by such holder of any of the obligations of Landlord hereunder,
unless such holder shall, by written notice sent to Tenant, specifically

                                       22
<PAGE>

elect,  or unless such holder shall  foreclose the mortgage,  take possession of
the Premises, and agree in writing to so assume Landlord's obligations.

                              ARTICLE XXVI: NOTICES

         Any and all notices, demands, consents or approvals required hereunder
shall be given in writing in accordance with this Section. Any notice from
Landlord to Tenant shall be deemed duly served, if mailed to Tenant (after the
Commencement Date) at the address listed herein by reputable overnight courier,
or by registered or certified mail, return receipt requested, postage prepaid.
Any notice from Tenant to Landlord shall be deemed duly served, if mailed to
Landlord by reputable overnight courier, or by registered or certified mail,
return receipt requested, postage prepaid, addressed to Landlord at the address
listed herein or at such address as Landlord may from time to time designate.
All notices shall be deemed sufficiently served or given for all purposes
hereunder the earlier of (i) receipt of such notice or (ii) two (2) business
days after such notice shall be deposited in any post office or branch post
office regularly maintained by the United States Government.

         LANDLORD:            Sixth Road Woburn LLC
                              c/o Robert W. Murray
                              27 Cambridge Street
                              Burlington, MA 01803-4616

         TENANT:              Bridgeline Software, Inc.
                              10 Sixth Road
                              Woburn, MA 01801

         With a simultaneous copy to:

                              Torpy & Gamer, LLC
                              One Washington Mall, 15th Floor
                              Boston,  MA 02108
                              Attn: Elizabeth Garner

                          ARTICLE XXVII: MISCELLANEOUS

27.1 The terms, provisions, covenants and conditions contained in this Lease
contain all agreements of the parties with respect to any matter mentioned
herein and will apply to, inure to the benefit of and be binding upon, the
parties hereto and upon their respective heirs, legal representatives,
successors and permitted assigns except as otherwise herein expressly provided.
This Lease may be modified in writing only, signed by Landlord and Tenant.

27.2 Landlord and Tenant agree, from time to time, within ten (10) days after
request by the other, to deliver an estoppel certificate stating that this Lease
is unmodified and in full force and effect (or if there have been modifications,
that the Lease is in full force and effect as modified and stating the
modifications) the date to which rent and other charges have been

                                       23
<PAGE>

paid, the unexpired  term of this Lease,  whether there are any defaults or rent
abatements  or offsets  claimed  by  Landlord  or Tenant and such other  factual
matters  pertaining  to this  Lease  as may be  reasonably  requested,  it being
intended that any such statement  delivered pursuant to this subparagraph may be
relied upon by any prospective  purchaser of the fee or mortgagee or assignee of
any  mortgage  upon  the fee of the  Premises  or any  other  party,  and  their
respective successors and assigns.

27.3 Time is of the essence  with respect to the due  performance  of the terms,
provisions and obligations set forth in this Lease.

27.4 If Landlord or Tenant is a corporation or limited liability company,
Landlord and Tenant represent and warrant that each individual executing this
Lease on behalf of said corporation or limited liability company is duly
authorized to execute and deliver this Lease on behalf of said corporation or
said limited liability company in accordance with a duly adopted resolution of
the Board of Directors of said corporation or limited liability company or in
accordance with the Bylaws of said corporation or operating agreement of said
limited liability company, and that this Lease is binding upon said corporation
or limited liability company in accordance with its terms.

27.5 This Lease will be construed and enforceable in accordance with the laws of
the state where the Premises are located.

27.6 Nothing in this Lease is to be deemed to limit or affect the right of
Landlord to sell, assign, encumber, transfer, lease or otherwise dispose of any
or all of Landlord's interest in any or all of the Premises or in any or all of
the Building.

27.7 Except as set forth in this Lease or any addendum or exhibit, all tenant
improvements to the Premises shall be the sole responsibility of Tenant and made
at Tenant's sole cost.

27.8 The initialed  Riders,  Addenda and Exhibits,  if any,  annexed  hereto are
incorporated herein by reference.

                                       24
<PAGE>

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day
and year first above written at the place and on the dates specified adjacent to
their respective signatures, as a sealed instrument.

                                               LANDLORD:

                                               Sixth Road Woburn LLC

Executed at BURLINGTON, MA

On MAY 6, 2005                                 By: /S/ ROBERT W. MURRAY
   ---------------------------------               --------------------
                                                   Robert W. Murray, Manager
                                                   and not individually

                                               TENANT:

                                               Bridgeline Software, Inc.

Executed at WOBURN, MA

on MAY 4, 2005                                 By: /S/ GARY M. CEBULA
   ---------------------------------               ------------------
                                                   Its: CFO
                                                   duly authorized

                                       25
<PAGE>

                                    EXHIBIT A

                [Omitted: Picture drawn to scale of leased space]

<PAGE>

                                    EXHIBIT B

                        BRIDGELINE OUTLINE SPECIFICATIONS

1.       Doors: 3' x 7' mahogany doors with a clear poly finish and painted
         metal trim.

2.       Office side lights: 2' x 7' side lights with painted metal trim on all
         offices and as shown on Exhibit A.

3.       Ceilings: 2' x 2' acoustical drop ceilings in all areas.

4.       Lighting: lighting to be consistent with the hallway lighting on the
         second floor BRIDGELINE's existing Premises at addressStreet130 New
         Boston Street. Lighting is Lightolier Fluorescent Coffaire 2x2
         Direct/Indirect Recessed. Catalogue # CFH2GPW2FT120SB.

5.       Flooring: Key Carpet Assurance, Level Loop 26 ounce pile throughout.
         12" x 12" Vinyl Composition Tile (VCT) by Mannington Commercial may be
         substitution in areas where appropriate, e.g., the Kitchen. Vinyl base
         throughout. Tenant may substitute alternative flooring, and Landlord
         will provide a credit toward the alternative flooring of $1.50 psf,
         installed.

6.       Walls: Taped drywall with white Benjamin Moore paint throughout.

7.       Kitchen: There will be a stainless steel sink recessed in a laminate
         counter with 6'-0" of building standard cabinets above and below
         counter. Additional cabinets/shelving may be provided in Kitchen as
         mutually agreed upon by Landlord and Tenant. Landlord will furnish and
         install a dishwasher. Refrigerator by Tenant.

8.       Door Systems: An all glass system will be provided for the front doors
         and for the large conference room door and wall as shown on Exhibit A.

9.       Window Treatments: Motor operated vertical blinds for the exterior
         windows are not included in this proposal. Vertical blinds for the
         interior windows also are not included.

10.      Accent Lighting: An allowance of $2,000 to install accent/specialty
         lighting is included. Lighting to be furnished by the Tenant. Tenant to
         furnish "spot" lights for its logo at the reception area. Landlord to
         provide recessed "spot" lights in the large conference room above the
         custom cabinetry. Installation of these lights by Landlord.

11.      Built-Ins/Cabinetry/Furniture: Except for the Kitchen and the binding
         room, built-ins, cabinets, and furniture are not included.

12.      Landlord will provide a 12' x 12' storage area in the basement with
         plywood shelving on two sides.

<PAGE>

13.      Tenant is responsible for all data and phone distribution from the
         Electrical Room. Landlord will provide data and phone connections to
         the main Electrical Room.

<PAGE>

                                    EXHIBIT C

                        RULES AND REGULATIONS ATTACHED TO

                          AND MADE A PART OF THIS LEASE

1. No sign, placard, picture, advertisement, name or notice shall be inscribed,
displayed or printed or affixed on or to any part of the outside of the Building
without the written consent of Landlord first had and obtained and Landlord
shall have the right to remove any such sign, placard, advertisement, name or
notice without notice to and at the expense of Tenant.

         All approved signs or lettering on doors shall be printed, painted,
affixed or inscribed at the expense of Tenant by a person approved by Landlord.

         Tenant shall not place anything or allow anything to be placed near the
glass of any window, door, partition or wall which may appear unsightly from
outside the Premises.

2. No Tenant shall have any property stored outside, except with the prior
consent of Landlord.

3. All sidewalks, halls, passages, exits, entrances, elevators and stairways of
the Building, if any, shall not be obstructed by Tenant or used for any purpose
other than for ingress to and egress from its respective Premises. No Tenant and
no employees or invitees of Tenant shall go up on the roof of the Building.

4. Tenant shall not alter any lock nor install any new or additional locks or
any bolts on any door of the Premises.

5. Tenant shall not overload the floor of the Premises or mark, drive nails,
screw or drill into the partitions, woodwork or plaster or in any way deface the
Premises or any part thereof.

6. Tenant shall not use, keep or permit to be used or kept any foul or noxious
gas or substance in the Premises, or permit or suffer the Premises to be
occupied or used in a manner offensive or objectionable to Landlord or other
occupants of the Building by reason of noise, odors and/or vibrations, or
interfere in any way with other tenants or those having business therein, nor
shall any animals or birds be brought in or kept in or about the Premises or the
Building.

7. No cooking shall be done or permitted by Tenant on the Premises, nor shall
the Premises be used for washing clothes, for lodging, or for any improper,
objectional or immoral purposes.

8. Tenant shall not use or keep in the Premises or the Building any kerosene,
gasoline or inflammable or combustible fluid or material, or use any method of
heating or air conditioning other than that supplied by Landlord.

<PAGE>

9. Landlord will direct electricians as to where and how telephone and telegraph
wires are to be introduced. No boring or cutting for wires will be allowed
without the consent of Landlord. The location of telephones, call boxes and
other office equipment affixed to the Premises shall be subject to the approval
of Landlord.

10. Tenant, upon the termination of its tenancy, shall deliver to the Landlord
the keys of offices, rooms and toilet rooms which shall have been furnished the
Tenant or which the Tenant shall have had made, and in the event of loss of any
keys so furnished, shall pay the Landlord therefore.

11. Landlord reserves the right to exclude or expel from the Building any person
who, in the judgment of Landlord, is intoxicated or under the influence of
liquor or drugs, or who shall in any manner do any act in violation of any of
the rules and regulations of the Building.

12. No vending machine or machines of any description shall be installed,
maintained or operated upon the Premises without the written consent of the
Landlord.

13. Tenant shall not disturb, solicit or canvass any occupant of the Building
and shall cooperate to prevent same.

14. Any permitted corrosive, flammable or other special wastes shall be handled
for disposal as directed by Landlord.

15. Tenant's use of the Common Areas shall be limited to access and parking
purposes and under no circumstances shall Tenant be permitted to store any goods
or equipment; conduct any operations or construct or place any improvements,
barriers or obstructions in the Common Areas, or otherwise adversely affect the
appearance of same.

16. In order to prevent damage or unreasonable wear and tear to carpeting and
other floor covering that is or may become the property of the Landlord under
the terms of the Lease, Tenant shall, at Tenant's expense, provide chair mats
for all desk chairs used in the Premises and furniture cushions or other
suitable protection under all desks, tables and other furniture and equipment
kept in the Premises. Damage caused to carpeting or floor covering because of
Tenant's failure to comply with this rule shall not be considered "reasonable"
or "ordinary" wear and tear .under the Lease in determining Tenant's liability
for damage to the Premises or Tenant's duty to repair, restore or maintain the
Premises.

17. The moving of equipment, furniture, and freight into or out of the Premises
shall occur only on previous notice to Landlord and at such times as Landlord
shall designate. The persons employed to move such equipment, furniture, or
freight in and out of the Building must be acceptable to Landlord. No equipment,
furniture, or freight of any description shall be received into the Building
except during the hours designated by Landlord.

         Landlord shall in all cases have and retain the power to prescribe the
weight, proper position, and manner of support under all heavy furniture,
equipment and freight, and all

<PAGE>

damage done to the Building by moving in or moving out any equipment,  furniture
or freight, or during the time it is in or on the Premises, shall be repaired at
the expense of Tenant, but by contractors or mechanics named by Landlord.

18. Tenant shall refrain from "excessive operation" (as hereinafter defied) of
the heating, ventilating and air conditioning ("HVAC") equipment servicing the
Premises. Operation of the HVAC equipment servicing the Premises is defined as
"excessive operation" in any of the following cases:

         a.) Operation during more than twelve (12) hours each day; or

         b.) Operation during more than six (6) days each week; or

         c.) Operation during any period other than the normal cooling and
heating seasons of the year.

         Tenant shall give prior written notice to the Landlord of any
anticipated requirement for excessive operation of the HVAC equipment servicing
the Premises in order to give the Landlord the opportunity to make any
modifications or changes to such equipment then existing as Landlord in its sole
discretion may deem necessary or desirable in order to assure that the equipment
will be able to satisfy the demand imposed by such excessive operation; however,
Landlord shall not be obliged to make any such modification or changes to the
equipment.

         Notwithstanding anything to the contrary contained in any other term or
provision of the Lease or the Exhibits, Addenda, or Riders thereto, if Tenant
requires the excessive operation of the HVAC equipment servicing the Premises,
Tenant shall, at its sole cost and expense and without any cost to Landlord,
keep in good order and repair and replace as necessary, all such HVAC equipment.
If Tenant refuses or neglects to make or perform such maintenance, repairs, or
replacement, in a manner satisfactory to Landlord, Landlord shall have the
right, upon giving Tenant reasonable written notice (except in situations deemed
to be emergency situations by Landlord), to perform such maintenance, or to make
such repairs or replacements on behalf of and for the account of Tenant and
Tenant shall pay Landlord's reasonable costs of such work, as additional rent,
promptly upon receipt of a bill therefore.

19. Overnight parking of vehicles is prohibited.

20. Landlord reserves the right to make such other and further nondiscriminatory
Rules and Regulations as in its judgment may be necessary or desirable for the
safety, care and cleanliness of the Premises and the Building and for the
preservation of good order therein. Tenant agrees to abide by all such Rules and
Regulations which are adopted.

                                              LANDLORD:

                                              Sixth Road Woburn LLC

<PAGE>

Executed at BURLINGTON, MA

on MAY 6, 2005                                By: /S/ ROBERT W. MURRAY
   ----------------------------                   ------------------------------
                                                  Robert W. Murray, Manager
                                                  and not individually

                                              TENANT:

                                              Bridgeline Software, Inc.

Executed at WOBURN, MA

on MAY 4, 2005                                By: /S/ GARY M. CEBULA
   ----------------------------                   ------------------------------
                                                  Its: CFO
                                                  duly authorized

<PAGE>

                                    EXHIBIT D

                     SUBORDINATION AND ATTORNMENT AGREEMENT

         THIS SUBORDINATION AND ATTORNMENT AGREEMENT (this "Agreement") made as
of this _____ day of _____, 20__, by and between (hereinafter referred to as
"Landlord"),______________________, (hereinafter referred to as "Tenant")
and_________________________(hereinafter referred to as "Mortgagee").

                                   WITNESSETH:

         WHEREAS, Mortgagee is committed to lend certain sums to Landlord which
sums shall be secured by a Security Agreement and Mortgage Deed (hereinafter
referred to as the "Mortgage") on certain property (hereinafter referred to as
the "Property") in [LOCATION OF PROPERTY], more particularly described therein
and which shall be recorded in the [NAME OF REGISTRY] concurrently with the
recording of this Agreement; and

         WHEREAS, Tenant has entered into a Lease (hereinafter referred to as
"said Lease" which term shall mean and include all amendments and modifications
thereto which have been approved by Mortgagee) with Landlord, executed the
[DATE] day of [MONTH], 20_, as amended, covering the premises and improvements
subject to said Mortgage as therein more particularly described; and

         WHEREAS, in order to induce the Mortgagee to make the loan as evidenced
by the Mortgage, Landlord and Tenant have offered to enter into this Agreement
in order to, inter alia, establish the prior right, claim and lien of the
Mortgage with respect to all matters concerning condemnation and casualty as set
forth in said Lease.

         NOW, THEREFORE, for and in consideration of One Dollar ($1.00) and
other good and valuable consideration, the receipt whereof the parties hereto
hereby acknowledge, and to induce the Mortgagee to make the loan evidenced by
said Mortgage, the parties hereto covenant and agree as follows:

         1. The said Mortgage and the lien thereof, shall be, and the same is
hereby made, SUBJECT AND SUBORDINATE to the said Lease with the same force and
effect as if said Lease had been executed, delivered and recorded prior to the
execution, delivery and recording of the said Mortgage, EXCEPT, HOWEVER, that
the Lease and the rights of Landlord and Tenant thereunder shall be, and is
hereby made, expressly subject and subordinate in all respects to:

         (a)      The right, claim and lien of said Mortgage in, to and upon any
                  award or other compensation heretofore or hereafter to be made
                  for any taking by eminent domain of any part of the said
                  Property, and to the right of disposition thereof in
                  accordance with the provisions of said Mortgage;

<PAGE>

         (b)      The right, claim and lien of said Mortgage in,. to and upon
                  any proceeds payable under all policies of fire, casualty and
                  rent insurance upon the said Property and as to the right of
                  disposition thereof in accordance with, the terms of said
                  Mortgage;

         (c)      Any right, power or interest, if any, which may have arisen or
                  intervened between the date of execution of said Lease, the
                  date of recording of the Mortgage, or any lien or judgment
                  which may arise at any time, under the terms of such Lease;

it being expressly further understood and agreed that with respect to the
matters referred to in subsections 1(a) through 1(c), the Mortgage and the lien
thereof shall be, and the same is hereby made, prior in right to the said Lease
and the rights of Landlord and Tenant thereunder with the same force and effect
as if said Mortgage had been executed, delivered and recorded prior to the
execution, delivery and recording of the Lease.

         2. Tenant agrees that it shall not alter, modify, amend, change,
surrender or cancel the Lease nor pay the rent due thereunder in advance for
more than thirty (30) days except as may be required by said Lease, without the
prior written consent of the Mortgagee, and will not seek to be made an adverse
or defendant party in any action or proceeding brought to enforce or foreclose
the Mortgage. Tenant further agrees that it shall not subordinate its interest
in the Lease to the lien of any mortgage, security agreement or lease affecting
the premises demised under the Lease.

         3. In the event of a default by Landlord under the terms of the Lease
which is of such a nature as to give Tenant the right to terminate the Lease or
reduce the rent payable thereunder by credit, offset or otherwise, then, and in
any such event, Tenant agrees that concurrently with giving notice of default to
Landlord, Tenant shall deliver a copy thereof to Mortgagee. Tenant further
agrees that if Landlord does not cure the default specified in such notice of
default within thirty (30) calendar days after notice thereof, then Tenant shall
give further notice of that fact to Mortgagee and Mortgagee shall thereupon, if
it shall so elect, have the right, but not the obligation, to cure the default
of Landlord within twenty (20) calendar days after the giving of such further
notice by Tenant, and in case of a default which cannot, with due diligence, be
cured with said twenty (20) days, then the twenty (20) days shall be extended
for such period as may be necessary to complete the curing of the same with all
due diligence and continuity.

         4. In the event of entry to foreclose the Mortgage and/or foreclosure
thereof, or a conveyance in lieu of, or subsequent to, foreclosure and if the
Lease shall not have been terminated under the provisions hereof or of the
Lease:

         (a)      The Mortgagee will not interfere with or disturb Tenant's
                  possession of the premises demised under the Lease, so long as
                  Tenant pays the rent stipulated in. the Lease and performs all
                  other terms and conditions thereof;

<PAGE>

         (b)      The Lease will remain in full force and effect, as modified
                  hereby, and the Tenant will attorn to and be bound under the
                  Lease to the Mortgagee and its successors and assigns
                  including any purchaser of the Property in foreclosure or any
                  grantee under a conveyance in lieu of or subsequent to
                  foreclosure, and Tenant will perform and observe all of its
                  obligations thereunder to the same effect as though the Lease
                  had been executed prior to the execution and delivery of the
                  Mortgage, and Tenant agrees to execute and deliver, upon the
                  request of the Mortgagee or other owner of the demised
                  premises, any instrument which may be necessary or appropriate
                  to evidence such attornment.

PROVIDED, HOWEVER, that the Mortgagee shall not be:

                  (i)      liable for any act or omission of the Landlord; or

                  (ii)     subject to any of-sets or defenses which the Tenant
                           might have against Landlord; or

                  (iii)    bound by any rent or additional rent which Tenant
                           might have paid for more than the current rental
                           period of the Lease; or

                  (iv)     bound by any amendment or modification of the Lease
                           made without its written consent.

         5. All notices, demands or other communications which any party hereto
is required or may desire to give to another party hereto may be delivered in
person or shall be sent by reputable overnight courier or by certified or
registered mail, postage prepaid, return receipt requested, addressed to the
other party at the address first set forth hereinabove or at such other
addresses as any party hereto may hereafter specify by notice in writing to the
others. Any such notice or demand shall be deemed given and received upon the
earlier to occur of receipt thereof or seventy-two (72) hours after deposit in
the placecountry-regionUnited States mail as aforesaid.

         6. Landlord hereby authorizes Tenant to rely on any written notice or
demand received from Mortgagee to make rent and other payments, to which
Landlord may be entitled, to Mortgagee instead of Landlord whenever so demanded
by Mortgagee, whether or not the Mortgage shall have been foreclosed.

         7. Tenant agrees that in the event Mortgagee shall succeed to the
rights of Landlord as landlord under the Lease, then Tenant shall look solely to
Mortgagee's interest in the Property in the enforcement of any claims against
Mortgagee. The provisions hereof shall expressly inure to the benefit of any
successors and assigns of Mortgagee.

         8. The provisions of this Agreement shall be deemed to be covenants
running with the land, shall be binding upon and shall inure to the benefit of
the parties hereto, their respective successors and assigns and shall
specifically be binding upon any purchaser of

<PAGE>

said Property at a sale foreclosing the said Mortgage. Mortgagee may assign and
transfer its interest in the Mortgage to [NAME OF ASSIGNEE], (hereinafter
referred to as "Assignee"). It is understood and agreed by all parties hereto
that upon making such assignment, Mortgagee shall be automatically released of
all obligations under this Agreement and that by acceptance of such assignment,
Assignee shall thereby assume all obligations of Mortgagee hereunder.

         9. This Agreement may be executed in three (3) or more counterparts by
one or more of the parties hereto and each such counterpart shall be deemed to
be an original and shall have the same force and effect as an original, and all
such counterparts in the aggregate shall constitute but one and the same
instrument.

IN WITNESS WHEREOF, each of the parties hereto have hereunto set their hands and
seals, as of the day and year first above written.

                                             LANDLORD

                                             TENANT

                                             MORTGAGEE

                                (ACKNOWLEDGMENTS)EXHIBIT 10.2
                                                                    ------------

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

                               AGREEMENT OF LEASE

                                     Between

                       104 WEST 40TH STREET PARTNERS, LLC,

                                    Landlord,

                                       and

                           BRIDGELINE SOFTWARE, INC.,

                                     Tenant.

                                    Premises:

                                   Suite 1010
                              104 West 40th Street
                               New York, New York

================================================================================
<PAGE>
                            LEASE INFORMATION SUMMARY

I.    LEASE DATE:                      November 26, 2003

II.   PARTIES AND ADDRESSES:

      A.  LANDLORD:                    104 West 40th Street Partners, LLC

      B.  LANDLORD'S ADDRESS
          FOR NOTICES:                 c/o RFR Realty, LLC
                                       400 Park Avenue - 15th floor
                                       New York, New York 10022

                                       with a copy to:

                                       Esanu Katsky Korins & Siger, LLP
                                       605 Third Avenue
                                       New York, New York 10158
                                       Attn: Randolph Amengual, Esq.

      C.  TENANT:                      Bridgeline Software, Inc.

      D.  TENANT'S ADDRESS
          FOR NOTICES:                 Prior to the Commencement Date:
                                       130 New Boston Street
                                       Woburn, Massachusetts 01801

                                       After the Commencement Date:

                                       104 West 40th Street
                                       New York, New York 10018

III.  PROPERTY INFORMATION:

      A.  PREMISES:                    A portion of the tenth (10th) floor
                                       of the Building, known as Suite 1010,
                                       as shown cross-hatched on Exhibit I
                                       annexed hereto and made a part hereof.

      B.  BUILDING:                    104 West 40th Street, New York, New York

      C.  REAL PROPERTY:               The real property on which the Building
                                       is located:

IV.   TERM:

      A.  TERM OF LEASE:               Seven (7) years and five (5) months

      B.  COMMENCEMENT DATE:           The date of substantial completion of
                                       Landlord's Work.

<PAGE>
      C.  EXPIRATION DATE:             The date immediately preceding seven (7)
                                       years and five (5) months after the
                                       Commencement Date, provided that if such
                                       date is not the last day of the calendar
                                       month, then the Expiration Date shall be
                                       extended to the last day of the calendar
                                       month in which the Term expires.

V.    RENT:

      A.  MINIMUM RENT
          (INCLUDING ELECTRICITY
          FACTOR):                     (i) One Hundred Thirty Two thousand and
                                       00/100 ($132,000.00) Dollars per annum
                                       ($11,000.00 per month) for the period
                                       commencing on the Commencement Date and
                                       ending on the day immediately preceding
                                       the third (3rd) anniversary of the
                                       Commencement Date; and

                                       (ii) One Hundred Forty Thousand Eight
                                       Hundred and 00/100 ($140,800.00) Dollars
                                       per annum ($11,733.33 per month) for the
                                       period commencing on the third (3rd)
                                       anniversary of the Commencement Date and
                                       ending on the Expiration Date.
      B.  MINIMUM RENT
          ABATEMENT PERIOD:            The second (2nd), third (3rd), fourth
                                       (4th), thirteenth (13th) and fourteenth
                                       (14th) full calendar months of the Term.

      C.  LANDLORD'S ADDRESS FOR
          PAYMENT OF RENT:             c/o RFR Realty, LLC
                                       400 Park Avenue - 15th floor
                                       New York, New York 10022

      D.  ELECTRICITY FACTOR:          $13,200.00 per annum

      E.  TENANT'S PROPORTIONATE
          SHARE:                       2.93%

      F.  BASE TAX AMOUNT:             The Taxes (as defined in Article 28) for
                                       the New York City fiscal tax year
                                       commencing on July 1, 2003 through June
                                       30, 2004.

      G.  BASE SECURITY YEAR:          The calendar year 2004.

      H.  BASE INSURANCE YEAR:         The calendar year 2004.

      I.  OPERATING ESCALATION:        Fixed 2.5% per annum increase in Minimum
                                       Rent.

      J.  SECURITY DEPOSIT:            $33,000.00

                                       ii
<PAGE>
      K.  LANDLORD'S WORK:             As described on Schedule B annexed hereto
                                       and made a part hereof.

      L.  TENANT UPGRADES:             $7,194.00 payable by Tenant upon
                                       execution of this Lease.

VI.   PERMITTED USES:
                                       General and executive offices.

VII.  BROKERS:

      A.  LANDLORD'S BROKER:           RFR Realty, LLC

      B.  TENANT'S BROKER:             Paul Rhodes-Williamson Picket Gross, Inc.

The summary of lease information set forth above and any addendum and/or
exhibits) and/or schedule(s) ("Riders") attached to this Lease are incorporated
into and made a part of the following Lease. Notwithstanding anything to the
contrary contained in this Lease, Articles 1 through 39 shall control the rights
and obligations of the parties hereto except that the provisions of any Riders
shall supersede any inconsistent provisions in Articles 1 through 39, as the
case may be.

                                       iii
<PAGE>
                                TABLE OF CONTENTS

1.    BASIC LEASE TERMS......................................................  1
      A.  Premises; Rent ....................................................  1
      B.  Commencement Notice................................................  1
      C.  Rent Credit .......................................................  2
2.    USE AND OCCUPANCY......................................................  2
      A.  Permitted Uses ....................................................  2
      B.  Use Prohibitions ..................................................  2
3.    ALTERATIONS............................................................  2
      A.  Defined Terms .....................................................  2
      B.  Alterations Within Premises .......................................  3
      C.  Landlord's Supervisory Fee ........................................  4
      D.  Required Submissions; Permits......................................  4
      E.  Completion of Alterations..........................................  6
      F.  Liens..............................................................  6
      G.  Miscellaneous Conditions...........................................  7
      H.  Removal of Alterations.............................................  8
4.    REPAIRS - FLOOR LOAD ..................................................  9
5.    WINDOW CLEANING .......................................................  9
6.    REQUIREMENTS OF LAW ................................................... 10
7.    SUBORDINATION ......................................................... 10
      A.  Subordination ..................................................... 10
      B.  Attornment ........................................................ 11
8.    RULES AND REGULATIONS ................................................. 11
9.    INSURANCE.............................................................. 11
      A.  Tenant's Insurance ................................................ 11
      B.  Tenant's Other Insurance .......................................... 12
      C.  Waiver of Subrogation ............................................. 12
10.   DESTRUCTION OF THE PREMISES; PROPERTY LOSS OR DAMAGE................... 13
      A.  Repair of Damage .................................................. 13
      B.  Landlord's Termination Option ..................................... 13
      C.  Repair Delays ..................................................... 13
      D.  Provision Controlling ............................................. 13
      E.  Property Loss or Damage ........................................... 13
11.   CONDEMNATION........................................................... 14
      A.  Condemnation ...................................................... 14
      B.  Award ............................................................. 15
12.   ASSIGNMENT AND SUBLETTING.............................................. 15
      A.  Prohibition Without Consent ....................................... 15
      B.  Notice of Proposed Transfer ....................................... 15
      C.  Landlord's Takeback Options ....................................... 15
      D.  Effect of Termination by Landlord ................................. 16
      E.  Takeback by Landlord .............................................. 16
      F.  Effect of Takeback or Termination ................................. 17
      G.  Conditions for Landlord's Approval ................................ 17
      H.  Future Requests ................................................... 19
      I.  Sublease Provisions ............................................... 19
      J.  Profits From Assignment or Subletting ............................. 19

                                       iv
<PAGE>
      K.  Other Transfers ................................................... 20
      L.  Related Corporation ............................................... 20
      M.  Assumption by Assignee ............................................ 20
      N.  Liability of Tenant ............................................... 21
      O.  Listings .......................................................... 21
      P.  Exclusive Broker .................................................. 21
      Q.  Re-entry by Landlord .............................................. 21
13.   CONDITION OF PREMISES ................................................. 22
14.   ACCESS TO PREMISES .................................................... 22
15.   CERTIFICATE OF OCCUPANCY .............................................. 23
16.   LANDLORD'S LIABILITY .................................................. 23
17.   DEFAULT ............................................................... 24
      A.  Events of Default ................................................. 24
      B.  Effect of Bankruptcy............................................... 25
      C.  Conditional Limitation ............................................ 25
      D.  Repeated Defaults ................................................. 25
      E.  Landlord's Rights ................................................. 25
18.   REMEDIES AND DAMAGES .................................................. 25
      A.  Landlord's Remedies ............................................... 25
      B.  Damages............................................................ 26
      C.  Legal Fees......................................................... 27
19.   FEES AND EXPENSES...................................................... 28
      A.  Curing Tenant's Defaults .......................................... 28
      B.  Late Charges ...................................................... 28
20.   NO REPRESENTATIONS BY LANDLORD ........................................ 29
21.   END OF TERM............................................................ 29
      A.  Surrender of Premises ............................................. 29
      B.  Holdover By Tenant ................................................ 29
22.   QUIET ENJOYMENT ....................................................... 30
23.   FAILURE TO GIVE POSSESSION............................................. 30
24.   NO WAIVER ............................................................. 30
25.   WAIVER OF TRIAL BY JURY ............................................... 31
26.   INABILITY TO PERFORM .................................................. 31
27.   BILLS AND NOTICES ..................................................... 31
28.   ESCALATIONS ........................................................... 32
      A.  Defined Terms ..................................................... 32
      B.  Escalation......................................................... 33
      C.  Payment of Escalations............................................. 33
      D.  Adjustments ....................................................... 35
      E.  Operating Cost Increase ........................................... 36
      F.  Capital Improvements .............................................. 36
29.   SERVICES............................................................... 36
      A.  Elevator .......................................................... 36
      B.  HVAC .............................................................. 36
      C.  After Hours and Additional Services ............................... 37
      D.  Cleaning .......................................................... 38
      E.  Trash Removal...................................................... 38
      F.  Sprinkler System .................................................. 39
      G.  Water ............................................................. 39
      H.  Electricity Service................................................ 39

                                        v
<PAGE>

      I.  Energy Conservation................................................ 42
      J.  Interruption of Services .......................................... 43
30.   PARTNERSHIP TENANT..................................................... 43
      A.  Partnership Tenants ............................................... 43
      B.  Limited Liability Entities ........................................ 43
31.   VAULT SPACE ........................................................... 44
32.   SECURITY DEPOSIT....................................................... 44
      A.  Deposit of Security ............................................... 44
      B.  Letter of Credit .................................................. 44
      C.  Application of Security Deposit ................................... 45
33.   CAPTIONS............................................................... 45
34.   ADDITIONAL DEFINITIONS................................................. 45
35.   PARTIES BOUND ......................................................... 46
36.   BROKER ................................................................ 46
37.   INDEMNITY ............................................................. 47
38.   ADJACENT EXCAVATION; SHORING .......................................... 47
39.   MISCELLANEOUS ......................................................... 47
      A.  No Offer .......................................................... 47
      B.  Signatories ....................................................... 47
      C.  Certificates ...................................................... 48
      D.  Directory Listings ................................................ 48
      E.  Authority ......................................................... 48
      F.  Signage............................................................ 48
      G.  Consents and Approvals ............................................ 49
      H.  Rent Control ...................................................... 49
      I.  Right to Relocate.................................................. 49
      J.  Access to Premises................................................. 50
      K.  Confidentiality ................................................... 50

                                       vi
<PAGE>
      AGREEMENT OF LEASE, made between 104 WEST 40th STREET PARTNERS, LLC, as
landlord, and BRIDGELINE SOFTWARE, INC., a Delaware corporation, as tenant.

                                   WITNESSETH:

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

1.    BASIC LEASE TERMS.

      A.  Premises: Rent. Landlord hereby leases to Tenant and Tenant hereby
hires from Landlord the Premises in the Building for the Term, to commence on
the Commencement Date and to end on the Expiration Date, both dates inclusive,
unless the Term shall sooner end pursuant to any of the terms, covenants or
conditions of this Lease or pursuant to law at the Minimum Rent, which Tenant
agrees to pay in lawful money of the United States which shall be legal tender
in payment of all debts and dues, public and private, at the time of payment, in
equal monthly installments, in advance, commencing on the Commencement Date and
on the first (1st) day of each calendar month thereafter during the Term (except
as hereinafter otherwise provided), at Landlord's Address for Payment of Rent or
such other place as Landlord may designate, without any set-off, offset,
abatement or deduction whatsoever, except that Tenant shall pay the first
monthly installment on the execution hereof. If the Commencement Date shall
occur on a date other than the first (1st) day of any calendar month, Tenant
shall pay to Landlord, on the first (1st) day of the month next succeeding the
month during which the Commencement Date shall occur, an amount equal to such
proportion of an equal monthly installment of Minimum Rent as the number of days
from and including the Commencement Date bears to the total number of days in.
said calendar month. Such payment, together with the sum paid by Tenant upon the
execution of this Lease, shall constitute payment of the Minimum Rent for. the
period from the Commencement Date to and including the last day of the next
succeeding calendar month. In the event that, on the Commencement Date, or
thereafter, Tenant shall be in default in the payment of Rent to Landlord
pursuant to the terms of another lease of space in the Building with Landlord or
with Landlord's predecessor-in-interest, Landlord may, at Landlord's option and
without notice to Tenant, add the amount of such arrearages to any monthly
installment of the Rent and the same shall be payable to Landlord as additional
rent hereunder.

      B.  Commencement Notice.

          (i) Landlord shall fix the Commencement Date in a notice to Tenant
given not sooner than five (5) days next following the date of the giving of
such notice, which notice shall state that Landlord has, or on or prior to the
commencement date fixed in said notice shall have, substantially completed
Landlord's Work. After the determination of the Commencement Date, and at
Landlord's request, prior to delivery of possession of the Premises to Tenant,
Tenant agrees, upon demand of Landlord, to execute, acknowledge and deliver to
Landlord an instrument, in form satisfactory to Landlord, setting forth the
Commencement Date and the Expiration Date.

          (ii) Notwithstanding anything contained herein to the contrary, and
provided that this Lease shall have been executed by Tenant and delivered to
Landlord together the first month's rent and the Security Deposit on or before
December 1, 2003, in the event that the Commencement Date has not occurred by
April 1, 2004, Tenant shall have the option to terminate this Lease upon thirty
(30) days' written notice to Landlord; provided, however, that in the event
Landlord delivers possession of the Premises to Tenant and the Commencement Date
occurs within such thirty (30) day period, Tenant's termination of this Lease
shall be null and void.

                                        1
<PAGE>
      C.  Rent Credit. Notwithstanding anything to the contrary hereinabove set
forth, provided Tenant is not in default under this Lease, Tenant shall be
entitled to a credit against the Minimum Rent exclusive of the Electrici Factor
(the "MINIMUM RENT ABATEMENT") for the second (2nd), third (3rd), fourth (4th),
thirteenth (13th) and fourteenth (14th) full calendar months of the Term. It is
understood and agreed that the Minimum Rent Abatement is given by Landlord in
consideration of Tenant's paying when due all rents under this Lease, and
otherwise complying with the terms hereof, and that in the event of any default
by Tenant under this Lease which results in the early termination hereof, (i)
the entire Minimum Rent Abatement given pursuant to this Subsection C, (ii) any
fee, commission or other compensation paid by Landlord to any broker or finder
in connection with this Lease, and (iii) the costs incurred by Landlord in
performing Landlord's Work shall, in addition to any other claims which Landlord
may have hereunder by reason of such default, become immediately due and payable
to Landlord as additional rent under this Lease.

2.    USE AND OCCUPANCY.

      A.  Permitted Uses. Tenant shall use and occupy the Premises for the
Permitted Uses, and for no other purpose.

      B.  Use Prohibitions. Tenant hereby represents, warrants and agrees that
Tenant's business is not and shall not be photographic, multilith or multigraph
reproductions or offset printing. Anything contained herein to the contrary
notwithstanding, Tenant shall not use the Premises or. any part thereof, or
permit the Premises or any part thereof to be used, (i) for the business of
photographic, multilith or multigraph reproductions or offset printing, (ii) for
a banking, trust company, depository, guarantee or safe deposit business, (iii)
as a savings bank, a savings and loan association or a loan company, (iv) for
the sale of travelers checks, money orders, drafts, foreign exchange or letters
of credit or for the receipt of money for transmission, (v) as a "retail" stock
broker's or dealer's office which shall be open to the general public (except
pursuant to prior appointment), (vi) as a restaurant or bar or for the sale of
confectionery, soda, beverages, sandwiches, ice cream or baked goods or for the
preparation, dispensing or consumption of food or beverages in any manner
whatsoever, (vii) as a news or cigar stand, (viii) as an employment agency,
labor union office, physician's or dentist's office or for the rendition of any
other diagnostic or therapeutic services, dance or music studio, school (except
for, the training of employees of Tenant), (ix) as a barber shop, beauty salon
or manicure shop, (x) for the retail sale of any goods or products, (xi) for a
public stenographer or typist, (xii) for a telephone or telegraph agency,
telephone or secretarial service for the public at large, (xiii) for a messenger
service for the public at large, (xiv) gambling or gaming activities, obscene or
pornographic purposes or any sort of commercial sex establishment, (xv) for the
possession, storage, manufacture or sale of alcohol, drugs or narcotics, (xvi)
for the conduct of a public auction, (xvii) for the offices or business of any
federal, state or municipal agency or any agency of any foreign government, or
(xviii) for any use that would cause the Premises to be deemed a place of public
accommodation under the Americans with Disabilities Act of 1990. Nothing in this
Subsection B shall preclude Tenant from using any part of the Premises for
photographic, multilith or multigraph reproductions in connection with, either
directly or indirectly, its own business and/or activities.

3.    ALTERATIONS.

      A.  Defined Terms. The following terms shall have the meanings
hereinafter set forth used throughout this Lease, Exhibits, Schedules and Riders
(if any).

                                        2
<PAGE>
          (i) "ALTERATIONS" shall mean and include all installations, changes,
alterations, restorations, renovations, decorations, replacements, additions,
improvements and betterments made in or to the Premises or the Building.

          (ii) "BUILDING SYSTEMS" shall mean the mechanical, gas, electrical,
sanitary, heating, air-conditioning, ventilating, elevator, plumbing,
life-safety and other service systems of the Building.

          (iii) "DECORATIVE ALTERATIONS" shall mean Alterations which do not
require the issuance of a building permit or any other governmental
authorization and which are purely decorative in nature (i.e., painting, the
installation or removal of carpeting or wall coverings and the installation or
relocation of modular office partitions).

          (iv) "LEGAL REQUIREMENTS" shall mean and include all laws orders,
ordinances, directions, notices, rules and regulations of the federal government
and of any state, county, city, borough and municipality, and of any division,
agency, subdivision, bureau, office, commission, board, authority and department
thereof, and of any public officer or official and of any quasi-governmental
officials and authorities, and of any insurance boards, having jurisdiction over
the Real Property, the Building and/or the Premises.

          (v) "NON-STRUCTURAL ALTERATIONS" shall mean non-structural,
non-mechanical and non-electrical Alterations.

          (vi) "Permits" shall mean all governmental permits, approvals,
licenses, authorizations, waivers, consents and certificates which may be
required in connection with the performance of any Alterations.

      B.  Alterations Within Premises.

          (i) Except as expressly provided to the contrary herein, Tenant shall
make no Alterations in or to the Premises, including removal of partitions,
doors, electrical installations, plumbing installations, water coolers, heating,
ventilating and air conditioning or cooling systems, units or parts thereof or
other apparatus of like or other nature, whether structural or non-structural,
without landlord's prior written consent, which consent Landlord agrees not to
unreasonably withhold or unduly delay with respect to Non-Structural Alterations
that are made entirely within the Premises and which do not (i) affect the
structure of the Building or any Building Systems outside (or serving parts of
the Building outside) the Premises, or (ii) violate, create a condition which
violates, or require Landlord to perform any work or incur any expense to ensure
compliance with, any Legal Requirements (it being agreed that, in all other
instances, Landlord may withhold its consent in Landlord's sole and absolute
discretion), and then only by contractors or mechanics approved in writing by
Landlord (which approval Landlord agrees not to unreasonably withhold or unduly
delay with respect to contractors or mechanics performing Non Structural
Alterations). Notwithstanding anything to the contrary contained in this
Subsection B, Tenant shall have the right, on not less than ten (10) days' prior
written notice to Landlord, but without being required to obtain Landlord's
consent, to perform Decorative Alterations in or to the Premises, provided that:
(y) Tenant shall comply with all applicable Legal Requirements and all of the
other applicable requirements governing Alterations set forth in this Lease, and
(z) such Decorative Alterations shall be performed only by contractors or
mechanics approved in writing by Landlord (which approval Landlord agrees not to
unreasonably withhold or unduly delay with respect to contractors or mechanics
performing such Decorative' Alterations). Landlord expressly reserves the right
to exclude from the Building any person, firm or corporation attempting to
perform any Alterations or act as construction contractor or manager without
Landlord's prior written consent, which consent shall not be unreasonably
withheld or

                                        3
<PAGE>
delayed, except with respect to contractors performing structural, mechanical or
electrical work with respect to which Landlord may withhold its consent in its
sole discretion.

          (ii) It shall be Tenant's responsibility and obligation to ensure that
all Alterations: (1) shall be made at Tenant's own cost and expense and at such
times and in such manner as Landlord may from time to time designate (including
reasonable rules governing Alterations as Landlord may from time to time make),
(2) shall comply with all Legal Requirements (including New York City Local Laws
No. 5 of 1973, No. 16 of 1984 and No. 58 of 1988, each as amended from time to
time, and all Legal Requirements then in effect relating to asbestos and to
access for the handicapped or disabled), (3) shall be made promptly and in a
good and workmanlike manner using materials substantially similar in quality to
the standard generally used in the Building or higher quality materials, and (4)
shall not affect the appearance of the Building outside of the Premises or be
visible from the exterior of the Building, it being landlord's intention to keep
the exterior appearance of the Building reasonably uniform (and, in pursuance
thereof, Landlord shall have the right to approve the appearance of all such
Alterations, including ceiling heights, blinds, lighting, signs and other
decorations which are visible from the exterior of the Building or the Premises,
which approval shall not be unreasonably withheld, provided that the exterior
appearance of such Alterations shall comply with all Legal Requirements and be
consistent with Landlord's intention to maintain a uniform exterior appearance
of the Building).

      C.  Landlord's Supervisory Fee. Tenant agrees to pay to Landlord as a
supervisory fee an amount equal to seven (7%) percent of the cost of any
Alterations to be performed by Tenant (other than Decorative Alterations) in
each instance. Such supervisory fee shall be paid by Tenant to Landlord prior to
the commencement of any such Alterations, based on the estimated cost of such
Alterations, and upon the completion of such Alterations, Tenant shall pay to
Landlord the difference, if any, between (i) seven (7%) percent of the actual
cost of such Alterations, and (ii) the amount previously paid as the estimated
supervisory fee prior to the commencement of such Alterations. In addition,
within ten (10) days after being billed therefor, Tenant shall reimburse
Landlord, as additional rent, for any reasonable out-of-pocket expenses to third
parties reasonably incurred by Landlord in connection with any Alterations
performed by Tenant.

      D.  Required Submissions; Permits.

          (i) Prior to commencing the performance of any Alterations (other than
Decorative Alterations), Tenant shall furnish to Landlord:

              (1) Plans and specifications prepared by a licensed architect or
engineer engaged by Tenant, at the sole cost and expense of Tenant, in
sufficient detail to be accepted for filing by the New York City Building
Department (or any successor or other governmental agency serving a similar
function) of such proposed Alterations (the "PLANS AND SPECIFICATIONS"), and in
accordance with the requirements set forth on Schedule C-1 annexed hereto and
made a part hereof. Tenant shall not commence the performance thereof unless and
until Landlord has given written consent to the Plans and Specifications (which
consent, subject to the provisions of Subparagraph B(i) above, shall not be
unreasonably withheld with respect to Plans and Specifications for
Non-Structural Alterations). Landlord's approval of the Plans and Specifications
shall be evidenced by written endorsement by an authorized representative of
Landlord to that effect on two (2) sets of the Plans and Specifications, one (1)
set to be retained by Landlord and the other to be returned to Tenant. If
Landlord shall disapprove the Plans and Specifications, then Tenant shall in
good faith promptly proceed to amend the Plans and Specifications to satisfy
Landlord's objections and shall resubmit such amended Plans and Specifications
to Landlord for approval.

                                        4
<PAGE>
              (2) A certificate evidencing that Tenant (or Tenant's contractors)
has (have) procured and paid for worker's compensation insurance covering all
persons employed in connection with the work, who might assert claims for death
or bodily injury against Landlord, Tenant, the Real Property and/or the Building
as set forth in Schedule D, and such additional personal injury and property
damage insurance (over and above the insurance required to be carried by Tenant
pursuant to the provisions of Article 9), builder's risk, fire and other
casualty insurance as Landlord may reasonably require in connection with the
Alterations.

              (3) If the work to be undertaken is of such, a nature that it
requires the approval of any Mortgagee (as defined in Article 7) or Lessor (as
defined in Article 7), such approval shall be obtained at Tenant's cost and
expense and Landlord hereby agrees, at Tenant's request but at no cost or
expense to Landlord, to use reasonable efforts to cooperate with Tenant with
respect to Tenant's obtaining such approval; if the work requires expenditures
by Tenant in excess of $50,000.00 (exclusive of the cost of Decorative
Alterations), a surety company performance bond in form and substance
satisfactory to Landlord (procured at Tenant's cost and expense), issued by a
surety company reasonably acceptable to Landlord, or other security reasonably
satisfactory to Landlord, in an amount equal to at least 125% of the estimated
cost of such Alterations, guaranteeing to Landlord and any Mortgagee and/or
Lessor the completion thereof and payment therefor within a reasonable time,
free and clear of all liens, encumbrances, chattel mortgages, security
interests, conditional bills of sale and other charges, and in accordance with
the plans and specifications approved by Landlord, and such other security as
may be satisfactory to Landlord in its sole judgment.

              (4) Such permits, authorizations or consents as may be required by
any applicable Legal Requirements, all of which shall be obtained at Tenant's
cost and expense, provided, however, that no plans, specifications or
applications shall be filed by Tenant with any governmental authority without
Tenant first obtaining Landlord's written consent thereto.

              (5) A written letter of authorization, in form reasonably
satisfactory to Landlord, signed by all architects, engineers, surveyors and
designers to become involved in such Alterations, which shall confirm that, if
Tenant shall abandon performance of any such Alterations, any of their
respective drawings or plans are to be removed from any filing with governmental
authorities on the request of Landlord.

          (ii) Landlord's engineer, at Tenant's expense, will design, in
accordance with the Plans and Specifications, all engineering work required for
air-conditioning, duct, distribution, electric, sprinklers and ventilation. In
the event Tenant shall require engineering services for any structural work
(which work has been previously approved by Landlord) or as a result of changes
in the Plans and Specifications, layout or Tenant's requirements for occupancy,
or for any other purposes which require additional engineering services, such
engineering services shall be performed by Landlord's engineer only, and Tenant
shall reimburse Landlord within ten (10) days of receipt of a statement for the
reasonable cost of such engineering services.

          (iii) Upon Landlord's approval of the Plans and Specifications, Tenant
shall cause the Plans and Specifications (including mechanical plans and
specifications) to be filed with the governmental agencies having jurisdiction
thereof, in order to obtain, and shall obtain all Permits which may be required
in connection with the, performance of such Alterations. All of the Plans and
Specifications shall be filed by, and all Permits which are required shall be
obtained by, Landlord's expediter, at Tenant's sole cost and expense. Landlord
shall with reasonable promptness sign the applications for such Permits prepared
by Tenant which require Landlord's signature and Tenant shall

                                        5
<PAGE>
indemnify and hold Landlord harmless against any claim, cost, liability or
expense resulting from any error, omission or other impropriety or deficiency in
any such application.

          (iv) Tenant hereby agrees that it shall afford Landlord and/or any
affiliate of Landlord the opportunity to submit a bid as general contractor or
subcontractor, as the case may be, for any Alterations.

      E.  Completion of Alterations.

          (i) Tenant, at Tenant's sole cost and expense, shall complete all
Alterations in accordance with the provisions of this Article 3 and this Lease.
Alterations shall be deemed completed at such time as (a) all certifications,
approvals, licenses and permits with respect to such Alterations that may be
required to evidence compliance with all Legal Requirements have been obtained
and delivered to Landlord, and (b) Tenant shall (1) furnish evidence
satisfactory to Landlord that all Alterations have been completed and paid for
in full and that any and all liens therefor that have been, or might be filed
have been discharged of record or waived and that no security interests relating
thereto are outstanding, (2) pay Landlord for the cost of any work performed by
Landlord on Tenant's behalf in connection with such Alterations, (3) except as
to Decorative Alterations, furnish Landlord with one (1) set of sepia mylar
transparent reproducible "as built" drawings of the Premises together with four
(4) sets of prints of the same, and the same in CADD format, (4) except as to
Decorative Alterations, furnish an affidavit in the form recommended by the
American Institute of Architects from Tenant's registered architect certifying
that the Alterations have been performed in accordance with the Plans and
Specifications as approved by Landlord. Tenant shall indemnify and save harmless
Landlord and its agents from and against any and all claims, actions,
liabilities and obligations arising from any work in connection with, or other
matters related to, the Alterations.

          (ii) Tenant shall keep accurate and complete cost records of all
Alterations performed by Tenant, and shall furnish to Landlord true copies
thereof and/or of all contracts entered into and work orders issued by Tenant in
connection therewith within thirty (30) days following completion of the
Alterations. Landlord's review of, and/or any failure by Landlord to object to,
any such contract or work order shall not: (a) be construed as an approval by
landlord of such contract or work order or the contents thereof, (b) impose any
liability on Landlord in connection therewith, or (c) relieve Tenant of any
obligation of Tenant with respect to such Alterations or the Premises as
otherwise set forth in this Lease.

      F.  Liens.

          (i) In no event shall any material or equipment be incorporated in or
affixed to the Premises in connection with any Alterations which is subject to
any lien, encumbrances, chattel mortgage, security interest, charge of any kind
whatsoever, or is subject to any conditional sale or other similar or dissimilar
title retention agreement.

          (ii) Tenant shall not create or permit to be created any lien,
encumbrance or charge (levied on account of any taxes or any mechanic's,
laborer's or materialman's lien, conditional sale, title retention agreement or
otherwise) which might be or become a lien, encumbrance or charge upon the Real
Property or Building or any part thereof or the income therefrom, and Tenant
shall not suffer any other matter or thing whereby the estate, rights and
interest of Landlord in the Real Property or Building or any part thereof might
be impaired. Tenant shall take all steps necessary under local laws to prevent
the imposition of such a lien, encumbrance or charge on the Real Property or
Building.

                                        6
<PAGE>
          (iii) If any lien, encumbrance or charge referred to in this
Subsection F shall at any time be filed against the Real Property or Building or
any part thereof, then Tenant, within twenty (20) days after Tenant shall have
received notice of the filing thereof and at Tenant's cost and expense, shall
cause the same to be discharged of record by bonding or otherwise, and Tenant
shall indemnify Landlord against and defend and hold Landlord harmless from all
costs, expenses, liabilities, losses, fines and penalties, including reasonable
attorneys' fees and disbursements, resulting therefrom. If Tenant shall fail to
cause such lien to be discharged within the aforesaid period, then, in addition
to any other right or remedy, Landlord may discharge the same either by paying
the amount claimed to be due or by procuring the discharge of such lien by
deposit or by bonding proceedings, and in any such event Landlord shall be
entitled, if Landlord so elects, to compel the prosecution of an action for the
foreclosure of such lien by the lienor and to pay the amount of the judgment in
favor of the lienor with interest, costs and allowances. Any amount so paid by
Landlord and all costs and expenses incurred by Landlord in connection
therewith, together with interest thereon at, the Interest Rate (as defined in
Article 19), shall constitute additional rent payable by Tenant under this
Lease, which additional rent shall be paid by Tenant to Landlord within ten (10)
days following delivery of a bill therefor to Tenant.

      G.  Miscellaneous Conditions.

          (i) Tenant shall not at any time, either directly or indirectly, use
any contractors or labor or materials in the Premises if the use of such
contractors or labor or materials would create any work stoppage, picketing,
labor disruption or any other difficulty with other contractors or labor engaged
by Tenant or Landlord or others in the construction, maintenance or operation of
the Building or any part thereof. Tenant shall immediately stop any work or
other activity if Landlord shall notify Tenant that continuing such work or
activity would violate the provisions of the immediately preceding sentence.

          (ii) Landlord shall not be liable for any failure or diminution of any
Building Systems or services, or for any damage to Tenant's property or the
property of any other person, caused by Alterations made by Tenant,
notwithstanding Landlord's consent thereto or to the plans and specifications
therefor. Tenant shall promptly correct any faulty or improper Alteration made
by Tenant and shall repair any and all damage caused thereby. Upon Tenant's
failure to promptly make such corrections and repairs, Landlord may make such
corrections and repairs and charge Tenant for the cost thereof and any such
charge shall be deemed additional rent, and shall be paid by Tenant to Landlord
within ten (10) days following delivery of a bill therefor to Tenant. The review
and/or approval by Landlord, its agents, consultants and/or contractors, of any
Alterations or of Plans and Specifications therefor and the coordination of the
performance of such Alterations with the Building, are solely for the benefit of
Landlord, and neither Landlord nor any of its agents, consultants or contractors
shall have any duty toward Tenant; nor shall Landlord or any of its agents,
consultants and/or contractors be deemed to have made any representation or
warranty to Tenant, or have any liability, with respect to the safety, adequacy,
correctness, efficiency or compliance with Legal Requirements of my plans and
specifications, Alterations or any other matter relating thereto.

          (iii) All Alterations to be performed by Tenant shall be done in a
manner which will not interfere with or disturb other tenants and occupants, of
the Building nor delay or impose any additional expense on Landlord in the
maintenance, cleaning, repair, safety, management and security of the Building
or the Building Systems or in the performance of any improvements in the
Building. Landlord shall have the right to inspect the performance of the
Alterations at any time to verify compliance by Tenant with the provisions of
this Lease.

          (iv) Landlord shall permit Tenant's contractors and suppliers to move
construction materials, supplies and equipment for the Alterations to the
Premises and to remove construction waste

                                        7
<PAGE>
and debris therefrom, by an elevator to be designated by Landlord at times
appointed by Landlord after normal business hours or on other than business
days, giving effect to other previously made appointments. Tenant's contractors
and suppliers shall pay Landlord's then established charges for the use of such
elevator as additional rent. Such elevator use shall be subject to reasonable
scheduling and supervision by Landlord. Tenant shall, and shall cause its
contractors and suppliers to, comply with Landlord's rules and regulations, and
Landlord's directions for the coordination and control of construction
activities in the Building and the protection and security of the Building and
its systems and occupants.

          (v) If Tenant shall fail to comply with any provision of this Article
3 (beyond notice and the expiration of any applicable cure period), Landlord, in
addition to any other remedy herein provided, may require Tenant to immediately
cease all work being performed in the Building by or on behalf of Tenant, and
Landlord may deny access to the Premises to any person performing work or
supplying materials in the Premises.

          (vi) Tenant shall make any and all modifications and additions and
replacements to the existing sprinkler and alarm systems within or serving the
Premises as may be necessitated by any Alterations.

          (vii) All Alterations shall be subject to the provisions of Schedule
C-2 annexed hereto and made a part hereof, as well as such other reasonable
rules and regulations as Landlord may promulgate.

          H.  Removal of Alterations.

          (i) All movable property, furniture, furnishings and trade fixtures
furnished by or at the expense of Tenant, other than those affixed to the
Premises so that they cannot be removed without damage and other than those
replacing an item theretofore furnished and paid for by Landlord or for which
Tenant has received a credit or allowance, shall remain the property of Tenant,
and may be removed by Tenant from time to time prior to the expiration of the
Term. All Alterations made by Tenant, including all paneling, decorations,
partitions, railings, mezzanine floors, galleries and the like, which are
affixed to the Premises, shall become the property of Landlord and shall be
surrendered with the Premises at the end of the Term, provided, however, that
Landlord may elect to require Tenant to remove, prior to the expiration or
earlier termination of the Term, at Tenant's expense, any Alterations.
Notwithstanding the foregoing, Tenant shall not be required to remove any
Alterations which are approved by Landlord in accordance with this Article 3,
except that Tenant acknowledges that Tenant shall be obligated to remove, prior
to the expiration or earlier termination of the Term, at Tenant's expense, any
Alterations made by Tenant consisting of raised floors, vaults, internal
staircases, pneumatic tubes, vertical and horizontal transportation systems, and
any other installations which would cost more to remove than ordinary office
installations.

          (ii) In any case where Tenant removes any property or Alterations in
accordance with Subsection H(i) or otherwise, Tenant shall immediately repair
all damage caused by said removal and shall restore the Premises to good order
and condition at Tenant's expense, and if Tenant fails to do so, Landlord may do
so at Tenant's cost and Tenant shall reimburse Landlord therefor within ten (10)
days of rendition of a bill therefor. Upon failure of Tenant to remove any such
property or Alterations, Landlord may, at Tenant's expense: (a) remove all such
property and Alterations which Landlord may require Tenant to remove pursuant to
Subsection H(i), (b) cause the same to be placed in storage, and (c) repair any
damage caused by said removal and restore the Premises to good order and
condition. Tenant

                                        8
<PAGE>
shall reimburse Landlord for all of the aforesaid expenses within ten (10) days
of rendition of a bill therefor.

          (iii) Notwithstanding anything to the contrary contained in, this
Subsection H, any items of property or Alterations not removed by Tenant may, at
the election of Landlord, be deemed to have been abandoned by Tenant, and
Landlord may retain and dispose of said items without any liability to Tenant
and without accounting to Tenant for the proceeds thereof.

          (iv) The provisions of this Subsection H shall survive the expiration
or sooner termination of the Term, whereupon any and all monetary obligations of
Tenant pursuant thereto shall be deemed damages recoverable by Landlord.

4.    REPAIRS - FLOOR LOAD. Landlord shall maintain and repair the public
portions of the Building, both exterior and interior. Tenant shall, throughout
the Term, take good care of the Premises and the fixtures and appurtenances
therein and at Tenant's sole cost and expense, make all nonstructural repairs
thereto as and when needed to preserve them in good working order and condition,
reasonable wear and tear and damage for which Tenant is not responsible under
the terms of this Lease excepted. Tenant shall pay Landlord for all replacements
to the lamps, tubes, ballasts and starters in the lighting fixtures installed in
the Premises within ten (10) days after rendition of a bill therefor.
Notwithstanding the foregoing, all damage or injury to the Premises or to any
other part of the Building, or to its fixtures, equipment and appurtenances,
whether requiring structural or nonstructural repairs, caused by or resulting
from carelessness, omission, neglect or improper conduct of or Alterations made
by Tenant or any of Tenant's servants, employees, invitees or licensees, shall
be repaired promptly by Tenant, at its sole cost and expense, to the
satisfaction of Landlord. Tenant also shall repair all damage to the Building
and the Premises caused by the moving of Tenant's fixtures, furniture or
equipment. All the aforesaid repairs shall be of quality and class equal to the
original work or construction and shall be made in accordance with the
provisions of Article 3 hereof. If Tenant fails after ten (10) days' notice to
proceed with due diligence to make repairs required to be made by Tenant
hereunder, the same may be made by Landlord, at the expense of Tenant, and the
expenses thereof incurred by Landlord shall be collectible by Landlord as
additional rent within ten (10) days after rendition of a bill or statement
therefor. Tenant shall give Landlord prompt notice of any defective condition in
any plumbing, electrical, air-cooling or heating system located in, servicing or
passing through the Premises. Tenant shall not place a load upon any floor of
the Premises exceeding the floor load per square foot area which such floor was
designed to carry and which is allowed by law. Landlord reserves the right to
prescribe the weight and position of all safes, business machines and heavy
equipment and installations. Business machines and mechanical equipment shall
be, placed and maintained by Tenant at Tenant's expense in settings sufficient
in Landlord's judgment to absorb and prevent vibration, noise and annoyance.
Except as expressly provided in Article 10 hereof, there shall be no allowance
to Tenant for a diminution of rental value and no liability on the part of
Landlord by reason of inconvenience, annoyance or injury to business arising
from Landlord, Tenant or others making, or failing to make, any repairs,
alterations, additions or improvements in or to any portion of the Building, or
the Premises, or in or to fixtures, appurtenances, or equipment thereof. If the
Premises be or become infested with vermin, Tenant, at Tenant's expense, shall
cause the same to be exterminated from time to time to the satisfaction of
Landlord and shall employ such exterminators and such exterminating company or
companies as shall be approved by Landlord. The water and wash closets and other
plumbing fixtures shall not be used for any purposes other than those for which
they were designed or constructed, and no sweepings, rubbish, rags, acids or
other substances shall be deposited therein.

5.    WINDOW CLEANING. Tenant shall not clean, nor require, permit, suffer or
allow any window in the Premises to be cleaned, from the outside in violation of
Section 202 of the Labor Law, or

                                        9
<PAGE>
any other applicable law, or of the rules of the Board of Standards and Appeals,
or of any other board or body having or asserting jurisdiction.

6.    REQUIREMENTS OF LAW. Tenant, at its sole expense, shall comply with all
Legal Requirements which shall now or hereafter impose any violation, order or
duty upon Landlord or Tenant with respect to the Premises as a result of the
use, occupation or alteration thereof by Tenant. Tenant shall not do or permit
to be done any act or thing upon the Premises which will invalidate or be in
conflict with any insurance policies covering the Building and fixtures and
property therein; and shall not do, or permit anything to be done in or upon the
Premises, or bring or keep anything therein, except as now or hereafter
permitted by the New York City Fire Department, New York Board of Fire
Underwriters, New York Fire Insurance Rating Organization or other authority
having jurisdiction and then only in such quantity and manner of storage as not
to increase the rate for fire insurance applicable to the Building, or use the
Premises in a manner which shall increase the We of fire insurance on the
Building or on property located therein, over that in similar type buildings or
in effect prior to this Lease. Any work or installations made or performed by or
on behalf of Tenant or any person claiming through or under Tenant pursuant to
this Article shall be made in, conformity with, and subject to the provisions
of, Article 3 hereof. If by reason of Tenant's failure to comply with the
provisions of this Article, the fire insurance rate shall at the beginning of
this Lease or at any time thereafter be higher than it otherwise would be, then
Tenant shall reimburse Landlord, as additional rent hereunder, for that part of
all fire insurance premiums thereafter paid by Landlord which shall have been
charged because of such failure of use by Tenant, and shall make such
reimbursement upon the first day of the month following such outlay by Landlord.
In any action or proceeding wherein Landlord and Tenant are parties, a schedule
or "make up" of rates for the Building or the Premises issued by the New York
Fire Insurance Rating Organization, or other body fixing such fire insurance
rates, shall be conclusive evidence of the facts therein stated and of the
several items and charges in the fire insurance rates then applicable to the
Premises.

7.    SUBORDINATION.

      A.  Subordination. This Lease is subject and subordinate to each and every
ground or underlying lease of the Real Property or the Building heretofore or
hereafter made by Landlord (collectively the "SUPERIOR LEASES") and to each and
every trust indenture and mortgage (collectively the "MORTGAGES") which may now
or hereafter affect the Real Property, the Building or any such Superior Lease
and the leasehold interest created thereby, and to all renewals, extensions,
supplements, amendments, modifications, consolidations, and replacements thereof
or thereto, substitutions therefor and advances made thereunder. This clause
shall be self-operative and no further instrument of subordination shall be
required to make the interest of any lessor under a Superior Lease (a "Lessor"),
or trustee or mortgagee of a Mortgage (a "MORTGAGEE") superior to the interest
of Tenant hereunder. In confirmation of such subordination, however, Tenant
shall execute promptly any certificate that Landlord may request and Tenant
hereby irrevocably constitutes and appoints Landlord as Tenant's
attorney-in-fact to execute any such certificate or certificates for and on
behalf of Tenant. If the date of expiration of any Superior Lease shall be the
same day as the Expiration Date, the Term shall end and expire twelve (12) hours
prior to the expiration of the Superior Lease. Tenant covenants and agrees that,
except as expressly provided herein, Tenant shall not do anything that would
constitute a default under any Superior Lease or Mortgage, or omit to do
anything that Tenant is obligated to do under the terms of this Lease so as to
cause Landlord to be in default under any of the foregoing. If, in connection
with the financing of the Real Property, the Building or the interest of the
lessee under any Superior Lease, any lending institution shall request
reasonable modifications of this Lease that do not materially increase the
obligations or materially and adversely affect the rights of Tenant under this
Lease, Tenant covenants to make such modifications.

                                       10
<PAGE>
          B.  Attornment. If at any time prior to the expiration of the Term,
any Mortgage shall be foreclosed or any Superior Lease shall terminate or be
terminated for any reason, Tenant agrees, at the election and upon demand of any
owner of the Real Property or the Building, or the lessor under any such
Superior Lease, or of any mortgagee in possession of the Real Property or the
Building, to attorn, from time to time, to any such owner, lessor or mortgagee,
upon the then executory terms and conditions of this Lease, for the remainder of
the term originally demised in this Lease, provided that such owner, lessor or
mortgagee, as the case may be, or receiver caused to be appointed by any of the
foregoing, shall not then be entitled to possession of the Premises. The
provisions of this Subsection B shall inure to the benefit of any such owner,
lessor or mortgagee, shall apply notwithstanding that, as a matter of law, this
Lease may terminate upon the termination of any such Superior Lease, and shall
be self-operative upon any such demand, and no further instrument shall be
required to give effect to said provisions. Tenant, however, upon demand of any
such owner, lessor or mortgagee, agrees to execute, from time to time,
instruments in confirmation of the foregoing provisions of this Subsection B,
satisfactory to any such owner, lessor or mortgagee, acknowledging such
attornment and setting forth the terns and conditions of its tenancy. Nothing
contained in this Subsection B shall be construed to impair any right otherwise
exercisable by any such owner, lessor or mortgagee.

8.    RULES AND REGULATIONS.  Tenant and Tenant's servants, employees, agents,
visitors, and licensees shall observe faithfully, and comply strictly with, the
Rules and Regulations annexed hereto and made a part hereof as Schedule A and
such other and further reasonable Rules and Regulations as Landlord or
Landlord's agents may from time to time adopt (collectively, the "RULES AND
REGULATIONS") on such notice to be given as Landlord may elect. In case Tenant
disputes the reasonableness of any additional Rule or Regulation hereafter made
or adopted by Landlord or Landlord's agents, the parties hereto agree to submit
the question of the reasonableness of such Rule or Regulation for decision to
the Chairman of the Board of Directors of the Management Division of The Real
Estate Board of New York, Inc., or to such impartial person or persons as he may
designate, whose determination shall be final and conclusive upon the parties
hereto. The right to dispute the reasonableness of any additional Rule or
Regulation upon Tenant's part shall be deemed waived unless the same shall be
asserted by service of a notice in writing upon Landlord within ten (10) days
after receipt by Tenant of written notice of the adoption of any such additional
Rule or Regulation. Nothing in this Lease contained shall be construed to impose
upon Landlord any duty or obligation to enforce the Rules and Regulations or
terms, covenants or conditions in any other lease, against any other tenant and
Landlord shall not be liable to Tenant for violation of the same by any other
tenant, its servants, employees, agents, visitors or licensees; provided,
however, that Landlord agrees that it shall not enforce the Rules and
Regulations against Tenant in a discriminatory manner.

9.    INSURANCE.

      A.  Tenant's Insurance. Tenant shall obtain at its own expense and keep in
fu11 force and effect from the date of full execution and delivery of this Lease
tough the Expiration Date, a policy of commercial general liability and property
damage insurance including broad form contractual liability coverage under which
Tenant is named as the insured, and Landlord (and each member thereof in the
event Landlord is a partnership or joint venture), RFR Realty LLC (and any other
mortgagee or interested parties from time to time designated by RFR Realty LLC),
are named as additional insureds, as their interests may appear. Such policy
shall contain (i) a provision that no act or omission of Tenant shall affect or
limit the obligation of the insurance company to pay the amount of any loss
sustained, (ii) a waiver of subrogation against Landlord or a consent to a
waiver of right of recovery against Landlord, and (iii) an agreement by the
insurer that it will not make any claim against or seek to recover from Landlord
for any loss, damage or claim whether or not covered under such policy. Such
policy shall also contain a provision that the insurance company will not cancel
or refuse to renew the policy, or change in any

                                       11
<PAGE>
material way the nature or extent of the coverage provided by such policy,
without first giving Landlord at least thirty (30) days' written notice by
certified mail, return receipt requested, which notice shall contain the policy
number and the names of the insureds and policy holder. The minimum limits of
liability shall be a combined single limit with respect to each occurrence in an
amount of not less than $2,000,000 for injury (or death) and damage to property
or such greater amount as Landlord may, from time to time, reasonably require.
Tenant shall provide to Landlord upon execution of this Lease and at least
thirty (30) days prior to the termination of any existing policy, a certificate
evidencing the effectiveness of the insurance policies required to be maintained
hereunder, and Tenant shall provide Landlord with a complete copy of any such
policy upon written request of Landlord. Tenant shall have no right to obtain
any of the insurance required hereunder pursuant to a blanket policy covering
other properties unless the blanket policy contains an endorsement that names
Landlord, Landlord's managing agent and/or designees specified by Landlord from
time to time, as additional insureds, references the Premises, and guarantees a
minimum limit available for the Premises equal to the amount of insurance
required to be maintained hereunder. Each policy required hereunder shall
contain a clause that the policy and the coverage evidenced thereby shall be
primary with respect to any policies carried by Landlord, and that any coverage
carried by Landlord shall be excess insurance. The limits of the insurance
required under this Article 9 shall not limit the liability of Tenant under this
Lease. All insurance required to be carried by Tenant pursuant to the terms of
this Lease shall be effected under valid and enforceable policies issued by
reputable and independent insurers permitted to do business in the State of New
York, and rated in Best's Insurance Guide, or any successor thereto (or if there
be, none, an organization having a national reputation) as having a general
policyholder rating of "A" and a financial rating of at least "13". In the event
that Tenant fails to continuously maintain insurance as required by this Article
9, Landlord may, at its option and without relieving Tenant of any obligation
hereunder, order such insurance and pay for the same at the expense of Tenant.
In such event, Tenant shall repay the amount expended by Landlord, with interest
thereon, immediately upon Landlord's written demand therefor.

      B.  Tenant's Other Insurance.  Tenant shall also maintain at its own
expense during the Term a policy against fire and other casualty on Tenant's
construction within the Premises and Tenant property and improvements, including
without limitation, all furniture, fixtures, personal property and inventory
located in the Premises on an "all-risk" form sufficient to provide 100%
replacement value of such personal property, which policy shall otherwise comply
with the provisions of Subsections A and C of this Article 9. Tenant shall also
maintain at its own expense during the Term a policy of workers' compensation
insurance providing statutory benefits for Tenant's employees and employer's
liability.

      C.  Waiver of Subrogation. The parties hereto shall procure an appropriate
clause in, or endorsement on, any fire or extended coverage property insurance
covering the Premises and the Building, as well as personal property, fixtures
and equipment located thereon or therein, pursuant to which the insurance
companies waive subrogation or consent to a waiver of right of recovery, and
having obtained such clauses or endorsements of waiver of subrogation or consent
to a waiver of right of recovery, will not make any claim against or seek to
recover from the other for any loss or damage to its property or the property of
others resulting from fire or other hazards covered by such fire and extended
coverage insurance, provided, however that the release, discharge, exoneration
and covenant not to sue herein contained shall be limited by and be coextensive
with the terms and provisions of the waiver of subrogation clause or
endorsements or clauses or endorsements consenting to a waiver of right of
recovery. If the payment of an additional premium is required for the inclusion
of such waiver of subrogation provision, each party shall advise the other of
the amount of any such additional premiums and the other party at its own
election may, but shall not be obligated to, pay the same. If such other party
shall not elect to pay such additional premium, the first party shall not be
required to obtain such waiver of subrogation provision. Tenant acknowledges
that Landlord will not carry insurance on and shall not be

                                       12
<PAGE>
responsible for damage to, Tenant's fixtures, furnishings, equipment or other
property or effects, and that Landlord shall not carry insurance against, or be
responsible for any loss suffered by Tenant due to, interruption of Tenant's
business.

10.   DESTRUCTION OF THE PREMISES; PROPERTY LOSS OR DAMAGE.

      A.  Repair of Damage. If the Premises shall be damaged by fire or other
casualty, the damages shall be repaired by and at the expense of Landlord
promptly following notice thereof by Tenant and the Rent until such repairs
shall be made shall be reduced in the proportion which the area of the part of
the Premises which is not usable by Tenant bears to the total area of the
Premises; provided, however, should Tenant reoccupy a portion of the Premises
for the conduct of its business prior to the date such repairs are made, the
Rent shall be reinstated with respect to such reoccupied portion of the Premises
and shall be payable by Tenant from the date of such occupancy. Landlord shall
have no obligation to repair any damage to, or to replace, any fixtures,
furniture, furnishings, equipment or other property or effects of Tenant.

      B.  Landlord's Termination Option. Anything in Subsection A of this
Article 10 to the contrary notwithstanding, if the Premises are totally damaged
or are rendered wholly untenantable, and if Landlord shall decide not to restore
the Premises, or if the Building shall be so damaged by fire, or other casualty
that, in Landlord's opinion, either substantial alteration, demolition or
reconstruction of the Building shall be required (whether or not the Premises
shall have been damaged or rendered untenantable) or the Building, after its
repair, alteration or restoration shall not be economically viable as an office
building, then in any of such events, Landlord, at Landlord's option, may, not
later than ninety (90) days following the damage, give Tenant a notice in
writing terminating this Lease. If Landlord elects to terminate this Lease, the
Term shall expire upon the tenth (10th) day after such notice is given, and
Tenant shall vacate the Premises and surrender the same to Landlord. If Tenant
shall not be in default under this Lease, then upon the termination of this
Lease under the conditions provided for in the next preceding sentence, Tenant's
liability for Rent shall cease as of the day following such damage.

      C.  Repair Delays. Landlord shall not be liable for reasonable delays
which may arise by reason of adjustment of fire insurance on the part of
Landlord and/or Tenant, and for reasonable delays on account of labor troubles
or any other cause beyond Landlord's control.

      D.  Provision Controlling. The parties agree that this Article 10
constitutes an express agreement governing any case of damage or destruction of
the Premises or the Building by fire or other casualty, and that Section 227 of
the Real Property Law of the State of New York, which, provides for such
contingency in, the absence of an express agreement, and any other law of like
import now or hereafter in force shall have no application in any such case.

      E.  Property Loss or Damage. Any Building employee to whom any property
shall be entrusted by or on behalf of Tenant shall be deemed to be acting as
Tenant's agent with respect to such property and neither Landlord nor its agents
shall be liable for any damage to property of Tenant or of others entrusted to
employees of the Building, nor for the loss of or damage to any property of
Tenant by theft or otherwise. Neither Landlord nor its agents shall be liable
for any injury or damage to persons or property or interruption of Tenant's
business resulting from fire, explosion, falling plaster, steam, gas,
electricity, water, rain or snow or leaks from any part of the Building or from
the pipes, appliances or plumbing works or from the roof, street or subsurface
or from any other place or by dampness or by any other cause of whatsoever
nature; nor shall Landlord or its agents be liable for any such damage caused by
other tenants or persons in the Building or caused by construction of any
private, public or quasi-public work; nor shall Landlord be liable for any
latent defect in the Premises or in the Building.

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<PAGE>
Anything in this Article 10 to the contrary notwithstanding, nothing in this
Lease shall be construed to relieve Landlord from responsibility directly to
Tenant for any loss or damage caused directly to Tenant wholly or in part by the
gross negligence or willful misconduct of Landlord. Nothing in the foregoing
sentence shall affect any right of Landlord to the indemnity from Tenant to
which Landlord may be entitled under Article 37 hereof in order to recoup for
payments made to compensate for losses of third parties. If at any time any
windows of the Premises arc temporarily closed, darkened or bricked-up for any
reason whatsoever including, but not limited to, Landlord's own acts, or any of
such windows are permanently closed, darkened or bricked-up if required by law
or related to any construction upon property adjacent to the Real Property by
Landlord or others, Landlord shall not be liable for any damage Tenant may
sustain thereby and Tenant shall not be entitled to any compensation therefor
nor abatement of Rent nor shall the same release Tenant from its obligations
hereunder nor constitute an eviction. Tenant shall give immediate notice to
Landlord in case of fire or accident in the Premises or in the Building. Tenant
shall not move any safe, heavy machinery, heavy equipment, freight, bulky matter
or fixtures into or out of the Building without Landlord's prior consent and
payment to Landlord of Landlord's costs in connection therewith. If such safe,
machinery, equipment, freight, bulky matter or fixtures requires special
handling, Tenant agrees to employ only persons holding a Master Rigger's License
to do said work, and that all work in connection therewith shall comply with the
Administrative Code of the City of New York and all other laws and regulations
applicable thereto, and shall be done during such hours as Landlord may
designate and, notwithstanding said consent of Landlord, Tenant shall indemnify
Landlord for, and hold Landlord harmless and free from, damages sustained by
persons or property and for any damages or monies paid out by Landlord in
settlement of any claims or judgments, as well as for all expenses and
attorneys' fees incurred in connection therewith and all costs incurred in
repairing any damage to the Building or appurtenances.

11.   CONDEMNATION.

      A. Condemnation. If the whole of the Real Property, the Building or the
Premises shall be acquired or condemned for any public or quasi-public use or
purpose, this Lease and the Term shall end as of the date of the vesting of
title with the same effect as if said date were the Expiration Date. If only a
part of the Real Property shall be so acquired or condemned then, (i) except as
hereinafter provided in this Subsection A, this Lease and the Term shall
continue in force and effect but, if a part of the Premises is included in the
part of the Real Property so acquired or condemned, from and after the date of
the vesting of title, the Rent shall be reduced in the proportion which the area
of the part of the Premises so acquired or condemned bears to the total area of
the Premises immediately prior to such acquisition or condemnation; (ii) whether
or not the Premises shall be affected thereby, Landlord, at Landlord's option,
may give to Tenant, within sixty (60) days next following the date upon which
Landlord shall have received notice of vesting of title, a five (5) days' notice
of termination of this Lease; and (iii) if the part of the Real Property so
acquired or condemned shall contain more than thirty (30%) percent of the total
area of the Premises immediately prior to such acquisition or condemnation, or
if, by reason of such acquisition or condemnation, Tenant no longer has
reasonable means of access to the Premises, Tenant, at Tenant's option, may give
to Landlord, within sixty (60) days next following the date upon which Tenant
shall have received notice of vesting of title, a five (5) days' notice of
termination of this Lease. If any such five (5) days' notice of termination is
given by Landlord or Tenant this Lease and the Term shall come to an end and
expire upon the expiration of said five (5) days with the same effect as if the
date of expiration of said five (5) days were the Expiration Date. If a part of
the Premises shall be so acquired or condemned and this Lease and the Term shall
not be terminated pursuant to the foregoing provisions of this Subsection,
Landlord, at Landlord's expense, shall restore that part of the Premises not so
acquired or condemned to a self-contained rental unit. In the event of any
termination of this Lease and the Term pursuant to the provisions of this
Subsection A, the Rent shall be apportioned as of the date of sooner

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<PAGE>
termination and any prepaid portion of Rent for any period after such date shall
be refunded by Landlord to Tenant.

      B.  Award. In the event of any such acquisition or condemnation of all or
any part of the Real Property, Landlord shall be entitled to receive the entire
award for any such acquisition or condemnation, Tenant shall have no claim
against Landlord or the condemning authority for the value of any unexpired
portion of the Term and Tenant hereby expressly assigns to Landlord all of its
right in and to any such award. Nothing contained in this Subsection B shall be
deemed to prevent Tenant from making a claim in any condemnation proceedings for
the then value of any furniture, furnishings and fixtures installed by and at
the sole expense of Tenant and included in such taking, provided that such
award shall not reduce the amount of the award otherwise payable to Landlord.

12.   ASSIGNMENT AND SUBLETTING.

      A.  Prohibition Without Consent. Tenant, for itself, its heirs,
distributees, executors, administrators, legal representatives, successors and
assigns, expressly covenants that it shall not assign, mortgage, pledge,
encumber or otherwise transfer this Lease, nor underlet, nor suffer, nor permit
the Premises or any part thereof to be used or occupied by others (whether for
desk space, mailing privileges or otherwise), without the prior written consent
of Landlord in each instance. If this Lease be assigned, or if the Premises or
any part thereof be underlet or occupied by anybody other than Tenant, Landlord
may, after default by Tenant, collect rent from the assignee, undertenant or
occupant, and apply the net amount collected to the Rent herein reserved, but no
assignment, underletting, occupancy or collection shall be deemed a waiver of
the provisions hereof, the acceptance of the assignee, undertenant or occupant
as tenant; or a release of Tenant from the further performance by Tenant of
covenants on the part of Tenant herein contained. The consent by Landlord to an
assignment or underletting shall not in any way be construed to relieve Tenant
from obtaining the express consent in writing of Landlord to any further
assignment or underletting. In no event shall any permitted sublessee assign or
encumber its sublease or further sublet all or any portion of its sublet space,
or otherwise suffer or permit the sublet space or any part thereof to be used or
occupied by others, without Landlord's prior written consent in each instance.
Any assignment, sublease, mortgage, pledge, encumbrance or transfer in
contravention of the provisions of this Article 12 shall be void.

      B.  Notice of Proposed Transfer. If Tenant shall at any time or times
during the Term desire to assign this Lease or sublet all or part of the
Premises, Tenant shall give notice thereof to Landlord, which notice shall be
accompanied by (i) a conformed or photostatic, copy of the proposed assignment
or sublease, the effective or commencement date of which shall be not less than
sixty, (60) nor more than one hundred and eighty (180) days after the giving of
such notice, (ii) a statement setting forth in reasonable detail the identity of
the proposed assignee or subtenant, the nature of its business and its proposed
use of the Premises, (iii) current financial information with respect to the
proposed assignee or subtenant, including, without limitation, its most recent
financial report, (iv) an agreement by Tenant to indemnify Landlord against
liability resulting from any claims that may be made against Landlord by the
proposed assignee or sublessee or by any brokers or other persons claiming a
commission or similar compensation in connection with the proposed assignment or
sublease, and (v) in the case of a sublease, such additional information related
to the proposed subtenant as Landlord shall reasonably request, if any.

      C.  Landlord's Takeback Options. The notice containing all of the
information set forth in Subsection B of this Article 12 shall be deemed an
offer from Tenant to Landlord whereby Landlord (or Landlord's designee) may, at
its option, (a) sublease such space (hereinafter called the "Leaseback Space")
from Tenant upon the terms and conditions hereinafter set forth (if the
proposed transaction is a sublease of all or part of the Premises), or (b)
terminate this Lease (if the proposed transaction is an

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<PAGE>
assignment or a sublease of all or substantially all of the Premises). Said
options may be exercised by Landlord by notice to Tenant at any time within
sixty (60) days after the aforesaid notice has been given by Tenant to Landlord;
and during such sixty (60) day period Tenant shall not assign this Lease nor
sublet such space to any person or entity.

      D.  Effect of Termination by Landlord. If Landlord exercises its option to
terminate this Lease in the case where Tenant desires either to assign this
Lease or sublet all or substantially all of the Premises, then this Lease shall
end and expire on the date that such assignment or sublet was to be effective or
commence, as the case may be, and the Minimum Rent and additional rent due
hereunder shall be paid and apportioned to such date. Furthermore, if Landlord
exercises its option to terminate this Lease pursuant to Subsection C of this
Article 12, Landlord shall be free to and shall have no liability to Tenant if
Landlord should lease the Premises (or any part thereof) to Tenant's prospective
assignee or subtenant.

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

          (i) shall be expressly subject to all of the covenants, agreements,
terms, provisions and conditions of this Lease except such as are irrelevant or
inapplicable, and except as otherwise expressly set forth to the contrary in
this Article 12;

          (ii) shall be upon the same terms and conditions as those contained in
the proposed sublease, except such as are irrelevant or inapplicable and except
as otherwise expressly set forth to the contrary in this Article 12;

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

          (iv) shall provide that any assignee or further subtenant of Landlord
or its designee, may, at the election of Landlord, be permitted to make
alterations, decorations and installations in such space or any part thereof and
shall also provide in substance that any such alterations, decorations and
installations in such space therein made by any assignee or subtenant of
Landlord or its designee may be removed, in whole or in part, by such assignee
or subtenant, at its option, prior to or upon the expiration or other
termination of such sublease provided that such assignee or subtenant, at its
expense, shall repair any damage and injury to such space so sublet caused by
such removal; and

          (v) shall also provide that (a) the parties to such sublease expressly
negate any intention that any estate created under such sublease be merged with
any other estate held by either of said parties, (b) any assignment or
subletting by Landlord or its designee (as the subtenant) may be for any purpose
or purposes that Landlord, in Landlord's uncontrolled discretion, shall deem
suitable or appropriate, (c) Tenant, at Tenant's expense, shall and will at all
times provide and permit reasonably appropriate means of ingress to and egress
from such space so sublet by Tenant to Landlord or its designee, (d) Landlord,
at Tenant's expense, may make such alterations as may be required or deemed

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<PAGE>
necessary by Landlord to physically separate the subleased space from the
balance of the Premises and to comply with any legal or insurance requirements
relating to such separation, and (e) that at the expiration of the term of such
sublease, Tenant will accept the space covered by such sublease in its then
existing condition, subject to the obligations of the sublessee to make such
repairs thereto as may be necessary to preserve the premises demised by such
sublease in good order and condition.

      F.  Effect of Takeback or Termination. If Landlord exercises its option to
sublet the Leaseback Space, (i) Landlord shall indemnify and save Tenant
harmless from all obligations under this Lease as to the Leaseback Space during
the period of time it is so sublet to Landlord; (ii) performance by Landlord, or
its designee, under a sublease of the Leaseback Space shall be deemed
performance by Tenant of any similar obligation. under this Lease and any
default under any such sublease shall not give rise to a default under a similar
obligation contained in this Lease nor shall Tenant be liable for any default
under this Lease or deemed to. be in default hereunder if such default is
occasioned by or arises from any act or omission of the tenant under such
sublease or is occasioned by or arises from any act or omission of any occupant
holding under or pursuant to any such sublease; and (iii) Tenant shall have no
obligation, at the expiration or earlier termination of the Term, to remove any
alteration, installation or improvement made in the Leaseback Space by Landlord
(or its designee).

      G.  Conditions for Landlord's Approval. In the event Landlord does not
exercise either option provided to it pursuant to Subsection C of this Article
12 and provided that Tenant is not in default of any of Tenant's obligations
under this Lease (after notice and the expiration of any applicable grace
period) as of the time of Landlord's consent, and as of the effective date of
the proposed assignment or commencement date of the proposed sublease,
Landlord's consent (which must be in writing and form reasonably satisfactory to
Landlord) to the proposed assignment or sublease shall not be unreasonably
withheld or delayed, provided and upon condition that:

          (i) Tenant shall have complied with the provisions of Subsection B of
this Article 12 and Landlord shall not have exercised any of its options under
Subsection C of this Article 12 within the time permitted therefor;

          (ii) In Landlord's reasonable judgment the proposed assignee or
subtenant is engaged in a business or activity, and the Premises, or the
relevant part thereof, will be used in a manner, which (a) is in keeping with
the then standards of the Building, (b) is limited to the use of the Premises as
general and executive offices, and (c) will not violate any negative covenant as
to use contained in any other lease of office space in the Building;

          (iii) The proposed assignee or subtenant is a reputable person of good
character and with sufficient financial worth considering the responsibility
involved, and Landlord has been furnished with reasonable proof thereof;

          (iv) Neither (a) the proposed assignee or sublessee nor (b) any person
which, directly or indirectly, controls, is controlled by or is under common
control with, the proposed assignee or sublessee, is then an occupant of any
part of the Building;

          (v) The proposed assignee or sublessee is not a person with whom
Landlord is or has been, within the preceding six (6) month period, negotiating
to lease space in the Building;

          (vi) The form of the proposed sublease or instrument of assignment (a)
shall be in form reasonably satisfactory to Landlord, and, without limitation,
(I) shall not provide for a rental or other payment for the use, occupancy or
utilization of the space demised thereby based in whole or in part on

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<PAGE>
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, and (II) shall provide that no person
having an interest in the possession, use, occupancy or utilization of the space
demised thereby shall enter into any lease, sublease, license, concession or
other agreement for use, occupancy or utilization of such space 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, and that any such.
purported lease, sublease, concession or other agreement shall be absolutely
void and ineffective AB INITIO, and (b) shall comply with the applicable
provisions of this Article 12;

          (vii) There shall not be more than two (2) subtenants (including
Landlord or its designee) of the Premises;

          (viii) The amount of the aggregate rent to be paid by the proposed
subtenant is not less than the then current market rent per rentable square foot
for the Premises as though the Premises were vacant, and the rental and other
terms and conditions of the sublease are the same as those contained in the
proposed sublease furnished to landlord pursuant to Subsection B of this Article
12;

          (ix) Within five (5) days after receipt of a bill therefor, Tenant
shall reimburse Landlord for the reasonable costs that may be incurred by
Landlord in connection with said assignment or sublease, including without
limitation, the costs of making investigations as to the acceptability of the
proposed assignee or subtenant, and reasonable legal costs incurred by Landlord
in connection with the granting of any requested consent;

          (x) Tenant shall not have (a) advertised or publicized in any way the
availability of the Premises without prior notice to and approval by Landlord,
nor shall any advertisement state the name (as distinguished from the address)
of the Building or the proposed rental, (b) listed the Premises for subletting
or assignment, with a broker, agent or representative other than the then
managing agent of the Building or other agent designated by Landlord;

          (xi) The proposed occupancy shall not, in Landlord's opinion, increase
the office cleaning requirements or the Building's operating or other expenses
or impose an extra burden upon services to be supplied by Landlord to Tenant;

          (xii) The proposed assignee or subtenant or its business shall not be
subject to compliance with Legal Requirements beyond those which are applicable
to the named Tenant herein; and

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

      Except for any subletting by Tenant to Landlord or its designee pursuant
to the provisions of this Article 12, each subletting pursuant to this
Subsection shall be subject to all of the covenants, agreements, terms,
provisions and conditions contained in this Lease. Notwithstanding any such
subletting to Landlord or any such subletting to any other subtenant and/or
acceptance of Rent or additional rent by Landlord from any subtenant, Tenant
shall and will remain fully liable for the payment of the Rent and additional
rent due and to become due hereunder and for the performance of all the
covenants, agreements, terms, provisions and conditions contained in this Lease
on the part of Tenant to be performed and all acts and omissions of my licensee
or subtenant or anyone claiming under or through

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<PAGE>
any subtenant which shall be in violation of any of the obligations of this
Lease shall be deemed to be a violation by Tenant. Tenant further agrees that
notwithstanding any such subletting, no or and further subletting of the
Premises by Tenant or any person claiming through or under Tenant shall or will
be made except upon compliance with and subject to the provisions of this
Article 12. If Landlord shall decline to give its consent to any proposed
assignment or sublease, or if Landlord shall exercise either of its options
under Subsection C of this Article 12, Tenant shall indemnify, defend and hold
harmless Landlord against and from any and all loss, liability, damages, costs,
and expenses (including reasonable counsel fees) resulting from any claims that
may be made against Landlord by the proposed assignee or sublessee or by any
brokers or other persons claiming a commission or similar compensation in
connection with the proposed assignment or sublease.

      H.  Future Requests. In the event that (i) Landlord fails to exercise
either of its options under Subsection C of this Article 12 and consents to a
proposed assignment or sublease, and (ii) Tenant fails to execute and deliver
the assignment or sublease to which Landlord consented within ninety (90) days
after the giving of such consent, then, Tenant shall again comply with all of
the provisions and conditions of Subsection B of this Article 12 before
assigning this Lease or subletting all or part of the Premises.

      I.  Sublease Provisions. With respect to each and every sublease or
subletting authorized by Landlord under the provisions of this Lease, it is
further agreed that:

          (i) No subletting shall be for a term ending later than one (1) day
prior to the Expiration Date of this Lease;

          (ii) No sublease shall be delivered, and no subtenant shall take
possession of the Premises or any part thereof, until an executed counterpart of
such sublease has been delivered to Landlord;

          (iii) Each sublease shall provide that it is subject and subordinate
to this Lease and to the matters to which this Lease is or shall be subordinate,
and that in the event of termination, re-entry or dispossession by Landlord
under this Lease Landlord may, at its option, take over all of the right, title
and interest of Tenant, as sublessor, under such sublease, and such subtenant
shall, at Landlord's option, attorn to Landlord pursuant to the then executory
provisions of such sublease, except that Landlord shall not (a) be liable for
any previous act or omission of Tenant under such sublease, (b) be subject to
any counterclaim, offset or defense, not expressly provided in such sublease,
which theretofore accrued to such subtenant against Tenant, or (c) be bound by
any previous modification of such sublease or by any previous prepayment of more
than one (1) month's Rent. The provisions of this Article 12 shall be
self-operative and no further instrument shall be required to give effect to
this provision.

      J.  Profits From Assignment or Subletting. If Landlord shall give its
consent to any assignment of this Lease or to any sublease or if Tenant shall
enter into any other assignment or sublease permitted hereunder, Tenant shall in
consideration therefor, pay to Landlord, as additional rent:

          (i) in the case of an assignment, an amount equal to all sums and
other considerations paid to Tenant by the assignee for or by reason of such
assignment (including, but not limited to, sums paid for the sale of Tenant's
fixtures, leasehold improvements, equipment, furniture, furnishings or other
personal property, less, in the case of a sale thereof, the then net unamortized
or undepreciated cost thereof determined on the basis of Tenant's federal income
tax returns) less all expenses reasonably and actually incurred by Tenant on
account of brokerage commissions and advertising costs in connection with such
assignment; and

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<PAGE>
          (ii) in the case of a sublease, any rents, additional charges or other
consideration payable under the sublease to Tenant by the subtenant which is in
excess of the Rent and additional rent accruing during the term of the sublease
in respect of the subleased space (at the rate per square foot payable by Tenant
hereunder) pursuant to the terms hereof (including, but not limited to, sums
paid for the sale or rental of Tenant's fixtures, leasehold improvements,
equipment, furniture or other personal property, less, in the case of the sale
thereof, the then net unamortized or undepreciated cost thereof determined on
the basis of Tenant's federal income tax returns), less all expenses reasonably
and actually incurred by Tenant on account of brokerage commissions, advertising
costs and the cost of demising the premises so sublet in connection with such
sublease. The sums payable under this Subsection shall be paid to Landlord as
and when payable by the subtenant to Tenant.

      K.  Other Transfers.

          (i) If Tenant is a corporation other than a corporation whose stock is
listed and traded on a nationally recognized stock exchange (hereinafter
refereed to as a "public corporation") unless such stock shall be sold,
transferred or otherwise conveyed by persons deemed "insiders" within the
meaning of the Securities Exchange Act of 1934, as amended, the provisions of
Subsection A of this Article 12 shall apply to a transfer (by one or more
transfers) of a majority of the stock of Tenant as if such transfer of a
majority of the stock of Tenant were an assignment of this Lease. The provisions
of this paragraph shall apply equally to any corporation which directly or
indirectly controls Tenant; but said provisions shall not apply to transactions
with a corporation into or with which Tenant is merged or consolidated or to
which substantially all of Tenant's assets or stock are sold, transferred or
otherwise conveyed provided that in any of such events (a) the successor to
Tenant has a net worth computed in accordance with generally accepted accounting
principles at least equal to the greater of (1) the net worth of Tenant
immediately prior to such sale, merger, consolidation or transfer, or (2) the
net worth of Tenant herein named on the date of this Lease, and (b) proof
satisfactory to Landlord of such net worth shall have been delivered to Landlord
at least ten (10) days prior to the effective date of any such transaction.

          (ii) If Tenant is a limited liability company, partnership, limited
liability partnership or other business entity, the provisions of Subsection A
of this Article 12 shall apply to a transfer (by one or more transfers) of a
majority interest in the limited liability company, partnership, limited
liability partnership or other business entity or in any entity which directly
or indirectly controls such limited liability company, partnership, limited
liability partnership or other business entity, as if such transfer were an
assignment of this Lease.

      L.  Related Corporation. Tenant may, with Landlord's consent which shall
not be unreasonably withheld, permit any corporations or other business entities
which control, are controlled by, or are under common control with Tenant
(herein referred to as "related corporation") to sublet all or part of the
Premises for the Permitted Use, subject however to compliance with Tenant's
obligations under this Lease. Such subletting shall not be deemed to vest in any
such related corporation any right or interest in this Lease or the Premises nor
shall it relieve, release, impair or discharge any of Tenant's obligations
hereunder. For the purposes hereof, "control" shall be deemed to mean ownership
of not less than fifty (50%) percent of all of the voting stock of such
corporation or not less than fifty (50%) percent of all of the legal and
equitable interests in any other business entities.

      M.  Assumption By Assignee. Any assignment or transfer, whether made with
Landlord's consent pursuant to Subsection A of this Article 12 or without
Landlord's consent pursuant to Subsection K of this Article 12, shall be made
only if, and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord an agreement in form and substance
satisfactory to Landlord whereby the assignee shall assume the obligations of
this Lease on the part of Tenant to be performed or

                                       20
<PAGE>
observed and whereby the assignee shall agree that the provisions in Subsection
A of this Article 12 shall, notwithstanding such assignment or transfer,
continue to be binding upon it in respect of all future assignments and
transfers. The original named Tenant covenants that, notwithstanding any
assignment or transfer, whether or not in violation of the provisions of this
Lease, and notwithstanding the acceptance of Rent and/or additional rent by
Landlord from an assignee, transferee or any other party, the original named
Tenant shall remain fully liable for the payment of the Rent and additional rent
and for the other obligations of this Lease on the part of Tenant to be
performed or observed.

      N.  Liability of Tenant. The joint and several liability of Tenant and any
immediate or remote successor in interest of Tenant and the due performance of
the obligations of this Lease on Tenant's part to be performed or observed shall
not be discharged, released or impaired in any respect by any agreement or
stipulation made by Landlord extending the time, or modifying any of the
obligations, of this Lease, or by any waiver or failure of Landlord to enforce
any of the obligations of this Lease.

      O.  Listings. The listing of any name other than that of Tenant, whether
on the doors of the Premises or the Building directory, or otherwise, shall not
operate to vest any right or interest in this Lease or in the Premises, nor
shall it be deemed to be the consent of Landlord to any assignment or transfer
of this Lease or to any sublease of the Premises or to the use or occupancy
thereof by others. Any such listing shall constitute a privilege extended by
Landlord, revocable at Landlord's will by notice to Tenant.

      P.  Exclusive Broker. In the event Tenant desires to sublet all or any
portion of the Premises or assign this Lease, it shall designate Landlord or the
then managing agent of the Building, at Landlord's option, as Tenant's exclusive
agent to effect such sublease or assignment and shall pay Landlord or such
managing agent, as the case may be, a reasonable brokerage commission computed
in accordance with the usual rates charged by Landlord or such managing agent.

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

                                       21
<PAGE>

net proceeds of insurance actually made available to Landlord, (v) be obligated
to repair the subleased space or the Building or any part thereof, in the event
of partial condemnation beyond such repair as can reasonably be accomplished
from the net proceeds of any award actually made available to Landlord as
consequential damages allocable to the part of the subleased space or the
Building not taken, or (vi) be obligated to perform any work in the subleased
space of the Building or to prepare them for occupancy beyond Landlord's
obligations under this Lease, and the subtenant shall execute and deliver to
Landlord any instruments Landlord may reasonably request to evidence and confirm
such attornment. Each subtenant or licensee of Tenant shall be deemed
automatically upon and as a condition of occupying or using the Premises or any
part thereof, to have given a waiver of the type described in and to the extent
and upon the conditions set forth in this Article 12.

13.   CONDITION OF PREMISES. Tenant agrees to accept possession of the Premises
in the condition which shall exist on the Commencement Date "as is", except for
Landlord's Work and further agrees that Landlord shall have no other obligation,
to perform any work or make any installations in order to prepare the Premises
for Tenant's occupancy. The taking of possession of the Premises by Tenant shall
be conclusive evidence as against Tenant that, at the time such possession was
so taken, the Premises and the Building were in good and satisfactory condition
and that Landlord's Work was substantially completed. Tenant acknowledges
receipt of advice from Landlord to the effect that the Premises and other
portions of the Building may contain asbestos. Tenant expressly agrees that (i)
Landlord shall have no liability whatsoever to Tenant, or to any person or
entity claiming by, through or under Tenant, on account of or in connection with
the presence of asbestos in the Premises or the Building, and (ii) Tenant's
obligation to keep, observe and perform all of the terms, provisions, covenants
and conditions on the part of Tenant to be kept, observed and performed pursuant
to this Lease shall not be affected on account of the presence of any such
asbestos.

14.   ACCESS TO PREMISES. Tenant shall permit Landlord, Landlord's agents and
public utilities servicing the Building to erect, use and maintain, concealed
ducts, pipes and conduits in and through the Premises. Landlord or Landlord's
agents shall have the right to enter the Premises at all reasonable times to
examine the same, to show them to prospective purchasers, mortgagees or lessees
of the Building or space therein, and to make such decorations, repairs,
alterations, improvements or additions as Landlord may deem necessary or
desirable to the Premises or to any other portion of the Building or which
Landlord may elect to perform following Tenant's failure to make repairs or
perform any work which Tenant is obligated to perform under this Lease, or for
the purpose of complying with laws, regulations or other requirements of
government authorities and Landlord shall be allowed to take all material into
and upon the Premises that may be required therefor without the same
constituting an eviction or constructive eviction of Tenant in whole or in part
and the Rent shall in nowise abate while said decorations, repairs, alterations,
improvements or additions are being made, by reason of loss or interruption of
business of Tenant, or otherwise. During the one (1) year prior to the
Expiration Date or the expiration of any renewal or extended term, Landlord may
exhibit the Premises to prospective tenants thereof, upon reasonable prior
notice (which notice may be oral), during regular business hours. If, during the
last twelve (12) months of the Term, Tenant shall have removed all or
substantially all of Tenant's property therefrom, Landlord may immediately enter
and alter, renovate and redecorate the Premises, without elimination or
abatement of Rent, or incurring liability to Tenant for any compensation, and
such acts shall not be deemed an actual or constructive eviction and shall have
no effect upon this Lease. If Tenant shall not be personally present to open and
permit an entry into the Premises, at any time, when for any reason an entry
therein shall be necessary or permissible, Landlord or Landlord's agents may
enter the same by a master key, or may forcibly enter the same, without
rendering Landlord or such agents liable therefor (if during such entry Landlord
or Landlord's agents shall accord reasonable care to Tenant's property), and
without in any manner affecting the obligations and covenants of this Lease.
Nothing herein contained, however, shall be deemed or construed to impose upon
Landlord any obligation,

                                       22
<PAGE>
responsibility or liability whatsoever, for the care, supervision or repair of
the Building or any part thereof, other than as herein provided. Landlord also
shall have the right at any time, without the same constituting an actual or
constructive eviction and without incurring any liability to Tenant therefor, to
change the arrangement and/or location of entrances or passageways, doors and
doorways, and corridors, elevators, stairs, toilets or other public parts of the
Building and to change the name, number or designation by which the Building is
commonly known. In addition, Tenant understands and agrees that Landlord may
perform substantial renovation work in and to the public parts of the Building
and the mechanical and other systems serving the Building (which work may
include the replacement of the building exterior facade and window glass,
requiring access to the same from within the Premises), and that Landlord shall
incur no liability to Tenant, nor shall Tenant be entitled to any abatement of
Rent on account of any noise, vibration or other disturbance to Tenant's
business at the Premises (provided that Tenant is not denied access to said
Premises) which shall arise out of the performance by Landlord of the aforesaid
renovations of the Building. Tenant understands and agrees that all parts
(except surfaces facing the interior. of the Premises) of all walls, windows and
doors bounding the Premises (including exterior Building walls, core corridor
walls, doors and entrances), all balconies, terraces and roofs adjacent to the
Premises, all space in or adjacent to the Premises used for shafts, stacks,
stairways, chutes, pipes, conduits, ducts, fan rooms, heating, air cooling,
plumbing and other mechanical facilities, service closets and other Building
facilities are not part of the Premises, and Landlord shall have the use
thereof, as well as access thereto through the Premises for the purposes of
operation, maintenance, alteration and repair.

15.   CERTIFICATE OF OCCUPANCY. Tenant shall not at any time use or occupy the
Premises in violation of the certificate of occupancy issued for the Premises or
for the Building and in the event that any department of the City or State of
New York shall hereafter at any time contend and/or declare by notice,
violation, order or in any other manner whatsoever that the Premises are used
for a purpose which is a violation of such certificate of occupancy whether or
not such use shall be a Permitted Use, Tenant shall, upon five (5) days' written
notice from Landlord, immediately discontinue such use of the Premises. Failure
by Tenant to discontinue such use after such notice shall be considered a
default in the fulfillment of a covenant of this Lease and Landlord shall have
the right to terminate this Lease immediately, and in addition thereto shall
have the right to exercise any and all rights and privilages and remedies given
to. Landlord by and pursuant to the provisions of Articles 17 and 18 hereof.

16.   LANDLORD'S LIABILITY. The obligations of Landlord under this Lease shall
not be binding upon Landlord named herein after the sale, conveyance, assignment
or transfer by such Landlord (or upon any subsequent landlord after the sale,
conveyance, assignment or transfer by such subsequent landlord) of its interest
in the Building or the Real Property, as the case may be, and in the event of
any such sale, conveyance, assignment or transfer, Landlord shall be and hereby
is entirely freed and relieved of all covenants and obligations of Landlord
hereunder, and it shall be deemed and construed without further agreement
between the parties or their successors in interest, or between the parties and
the purchaser, grantee, assignee or other transferee that such purchaser,
grantee, assignee or other transferee has assumed and agreed to carry out any
and all covenants and obligations of Landlord hereunder. Neither the
shareholders, directors or officers of Landlord, if Landlord is a corporation,
nor the partners comprising Landlord (nor any of the shareholders, directors or
officers of such partners), if Landlord is a partnership, nor any member of
Landlord, if Landlord is a limited liability company (collectively, the
"Parties"), shall be liable for the performance of Landlord's obligations under
this Lease. Tenant shall look solely to Landlord to enforce Landlord's
obligations hereunder and shall not seek any damages against any of the Parties.
The liability of Landlord for Landlord's obligations under this Lease shall not
exceed and shall be limited to Landlord's interest in the Building and the Real
Property and Tenant shall not look to any other property or assets of Landlord
or the property or assets of any of the Parties in

                                       23
<PAGE>

seeking either to enforce Landlord's obligations under this Lease or to satisfy
a judgment for Landlord's failure to perform such obligations.

17.   DEFAULT.

      A.  Events of Default. This Lease and the term and estate hereby granted
are subject to the limitations that upon the occurrence, at any time prior to or
during the Term, of any one or more of the following events (referred to as
"EVENTS OF DEFAULT"):

      (1) if Tenant shall default in the payment when due of any installment of
Rent or in the payment when due of any additional rent, and such default shall
continue for a period of five (5) days; or

      (2) if Tenant shall default in the observance or performance of any term,
covenant or condition of this Lease on Tenant's part to be observed, or
performed (other than the covenants for the payment of Rent and additional rent)
and Tenant shall fail to remedy such default within ten (10) days after notice
by Landlord to Tenant of such default, or if such default is of such a nature
that it cannot be completely remedied within said period of ten (10) days and
Tenant shall not commence within said period of ten (10) days, or shall not
thereafter diligently prosecute to completion all steps necessary to remedy such
default; or

      (3) if Tenant shall default in the observance or performance of any term,
covenantor condition on Tenant's part to be-observed or performed-under any
other lease with Landlord or Landlord's predecessor in interest of space in the
Building and such default shall continue beyond any grace period set forth in
such other lease for the remedying of such default; or

      (4) if the Premises shall become vacant, deserted or abandoned; or

      (5) if Tenant's interest in this Lease shall devolve upon or pass to any
person, whether by operation of law or otherwise, except as may be expressly
permitted under Article 12 hereof; or

      (6) if Tenant shall file a voluntary petition in bankruptcy or insolvency,
or shall be adjudicated a bankrupt or insolvent, or shall file any petition . or
answer seeking any reorganization, arrangement, composition, readjustment,
liquidation, dissolution or similar relief under the present or any future
federal bankruptcy act or any other present or future applicable federal; state
or other statute or law, or shall make an assignment for the benefit of
creditors or shall seek or consent to or acquiesce in the appointment of any
trustee, receiver or liquidator of Tenant or of all or any: part of Tenant's
property; or

      (7) if, within thirty (30) days after the commencement of any proceeding
against Tenant, whether by the filing of a petition or otherwise, seeking any
reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under the presenter any future federal bankruptcy act or any
other present or future applicable federal, state or other statute or law, such
proceeding shall not have been dismissed, or if, within thirty (30) days after
the appointment of any trustee, receiver or liquidator of Tenant, or of all or
any part of Tenant's property, without the consent or acquiescence of Tenant,
such appointment shall not have been vacated or otherwise discharged, or if any
execution or attachment shall be issued against Tenant or any of Tenant's
property pursuant to which the Premises shall be taken or occupied or attempted
to be taken or occupied;

                                       24
<PAGE>

then, in any of said cases, at any time prior to or during the Term, of any one
or more of such Events of Default, Landlord, at any time thereafter, at
Landlord's option, may give to Tenant a five (5) days' notice of termination of
this Lease and, in the event such notice is given, this Lease and the Term shall
come to an end and expire (whether or not the Term shall have commenced) upon
the expiration of said five (5) days with the same effect as if the date of
expiration of said five (5) days were the Expiration Date, but Tenant shall
remain liable for damages as provided in Article 18 hereof.

      B.  Effect of Bankruptcy. If, at any time, (i) Tenant shall be comprised
of two (2) or more persons, or (ii) Tenant's obligations under this Lease shall
have been guaranteed by any person other than Tenant, or (iii) Tenant's interest
in this Lease shall have been assigned, the word "Tenant", as used in clauses
(6) and (7) of Subsection A of this Article 17, shall be deemed to mean any
one or more of the persons primarily or secondarily liable for Tenant's
obligations under this Lease. Any monies received by Landlord from or on
behalf of Tenant during the pendency of any proceeding of the types referred to
in said clauses (6) and (7) shall be deemed paid as compensation for the use and
occupation of the Premises and the acceptance of any such compensation by
Landlord shall not be deemed an acceptance of rent or a waiver on the part of
Landlord of any rights under said Subsection A.

      C.  Conditional Limitation. Nothing contained in this Article 17 shall be
deemed to require Landlord to give the notices herein provided for prior to the
commencement of a summary proceeding for non-payment of rent or a plenary action
for recovery of rent on account of any default in the payment of the same, it
being intended that such notices are for the sole purpose of creating a
conditional limitation hereunder pursuant to which this Lease shall. terminate
and if Tenant thereafter remains in possession after such termination Tenant
shall do so as a holdover tenant.

      D.  Repeated Defaults. Tenant expressly recognizes that Tenant's due and
punctual performance of all its obligations under this Lease throughout the term
hereof is of paramount importance to Landlord, and, without limiting any of the
provisions of this Lease, Tenant agrees that, if Tenant (i) shall fail to pay
for five (5) days after it becomes due an installment of Minimum Rent or any
additional rent for two (2) consecutive months or for a total of three (3)
months any period of twenty four (24) months, or (ii) shall default in the
timely performance of any other obligation of Tenant under this Lease with
respect to which Landlord shall have given Tenant notice of default; and such
default shall occur more than three (3) times in my period of twelve (12)
months, then notwithstanding that such failure or other default shall have been
cured within the applicable grace period provided in this Lease, any further
similar default shall be deemed to be deliberate and Landlord thereafter may,
without further notice of default, serve a five (5) day notice of cancellation
of this Lease as and with the effects provided in Subsection A of this Article
17.

      E.  Landlord's Rights. Tenant acknowledges and agrees that Landlord, as a
matter of Building policy, will actively pursue its legal rights under this
Article 17 and all other provisions of this Lease, irrespective of my ongoing
discussions or negotiations with Tenant as to Tenant's defaults.

18. REMEDIES AND DAMAGES.

      A.  Landlord's Remedies.

          (1) If an Event of Default shall occur and be continuing, or if this
Lease and the Term shall expire and come to an end as provided in Article 17:

              (a) Landlord and its agents and servants may immediately, or at
any time after such default or after the date upon which this Lease and the Term
shall expire and come to an end,

                                       25
<PAGE>

re-enter the Premises or any part thereof, either by summary proceedings, or by
any other applicable action or proceeding, (without being liable to indictment,
prosecution or damages therefor), and may repossess the Premises and dispossess
Tenant and any other persons from the Premises and remove any and all of their
property and effects from the Premises; and

              (b) Landlord, at Landlord's option, may relet the whole or
any part or parts of the Premises from time to time, either in the name of
Landlord or otherwise, to such tenant or tenants, for such term or terms ending
before, on or after the Expiration Date, at such rental or rentals and upon such
other conditions, which may include concessions and free rent periods, as
landlord, in its sole discretion, may determine. Landlord shall have no
obligation to relet the Premises or any part thereof and shall in no event be
liable for refusal or failure to relet the Premises or any part thereof, or, in
the event of any such reletting, for refusal or failure to collect any rent due
upon any such reletting, and no such refusal or failure shall operate to relieve
Tenant of any liability under this Lease or otherwise to affect any such
liability; Landlord, at Landlord's option, may make such repairs, replacements,
alterations, additions, improvements, decorations and other physical changes in
and to the Premises as Landlord, in its sole discretion, considers advisable or
necessary in connection with any such reletting or proposed reletting, without
relieving Tenant of any liability under this Lease or otherwise affecting any
such liability.

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

      B.  Damages.

          (1) If this Lease and the Term shall expire and come to an end as
provided in Article 17, or by or under any summary proceeding or any other
action or proceeding, or if Landlord shall re-enter the Premises as provided in
Subsection A of this Article 18, or by or under any summary proceeding or any
other action or proceeding, then, in any of said events:

              (a) Tenant shall pay to Landlord all Rent, additional rent and
other charges payable under this Lease by Tenant to Landlord to the date upon
which this Lease and the Term shall have expired and come to an end or to the
date of re-entry upon the Premises by Landlord, as the case may be;

              (b) Tenant also shall be liable for and shall pay to Landlord, as
damages, any deficiency (referred to as "Deficiency") between the Rent reserved
in this Lease for the period which otherwise would have constituted the
unexpired portion of the Term and the net amount, if any, of rents

                                       26
<PAGE>

collected under any reletting effected pursuant to the provisions of Subsection
A(1) of this Article 18 for any part of such period (first deducting from the
rents collected under any such reletting all of Landlord's expenses in
connection with the termination of this Lease, or Landlord's reentry upon the
Premises and with such reletting including, but not limited to, all repossession
costs, brokerage commissions, legal expenses, attorneys fees and disbursements,
alteration costs and other expenses of preparing the Premises for such
reletting); any such Deficiency shall be paid in monthly installments by Tenant
on the days specified in this Lease for payment of installments of Rent,
Landlord shall be entitled to recover from Tenant each. monthly Deficiency as
the same shall arise, and no suit to collect the amount of the Deficiency for
any month shall prejudice Landlord's right to collect the Deficiency for any
subsequent month by a similar proceeding; and

              (c) whether or not Landlord shall have collected any monthly
Deficiencies as aforesaid, Landlord shall be entitled. to recover from Tenant,
and Tenant shall pay to landlord, on demand, in lieu of any further Deficiencies
as and for liquidated and agreed final damages, a sum equal to the amount by
which the Rent reserved in this Lease for the period which otherwise would have
constituted the unexpired portion of the Term exceeds the then "fair and
reasonable rental value of the Premises for the same period, less the aggregate
amount of Deficiencies theretofore collected by Landlord pursuant to the
provisions of Subsection B(1)(b) of this Article 18 for the same period; if,
before presentation of proof of such liquidated damages to any court, commission
or tribunal, the Premises, or any part thereof, shall have been relet by
Landlord for the period which otherwise 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 during the term of the
reletting.

      (2) If the Premises, or any part thereof, shall be relet together with
other space in the Building, the rents collected or reserved under any such
reletting and the expenses of any such reletting shall be equitably apportioned
for the. purposes of this Subsection B. Tenant shall in no event be entitled to
any rents collected or payable under any reletting, whether, or not. such rents
shall exceed the Rent reserved in this Lease Solely for the purposes of this
Article, the term "Rent" as used in Subsection B(1) of this Article 18 shall
mean the Rent in effect immediately prior to the date upon which this Lease and
the Term shall have expired and come to an end, or the date of re-entry upon the
Premises by Landlord, as the case may be, adjusted to reflect any increase or
decrease pursuant to the provisions of Article 28 hereof for the Comparison Year
(as defined in said Article 28) immediately preceding such event. Nothing
contained in Article 17 or this Article 18 shall be deemed to limit or preclude
the recovery by Landlord from 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 Landlord may be entitled in addition to the damages set forth in
Subsection B(1) of this Article 18.

      C.  Legal Fees.

          (i) Tenant hereby agrees to pay, as additional rent, all reasonable
attorneys' fees and disbursements (and all other court costs or expenses of
legal proceedings) which Landlord may incur or pay out by reason of, or in
connection with:

              (a) any action or proceeding by Landlord to terminate this Lease;

              (b) any other action or proceeding by Landlord against Tenant
(including, but not limited to, any arbitration proceeding);

                                       27
<PAGE>

              (c) any default by Tenant in the observance or performance of any,
obligation under this lease (including, but not limited to, matters involving
payment of rent and additional rent, computation of escalations, alterations or
other Tenant's work and subletting or assignment), whether or not landlord
commences any action or proceeding against Tenant;

              (d) any action or proceeding brought by Tenant against landlord
(or any officer, partner or employee of landlord) in which Tenant fails to
secure a final unappealable judgment against Landlord; and

              (e) any other appearance by Landlord (or any officer, partner or
employee of landlord) as a witness or otherwise in any action or proceeding
whatsoever involving or affecting Landlord, Tenant or this Lease.

      (ii) Tenant's obligations under this Subsection C shall survive the
expiration of the Term hereof or any earlier termination of this Lease. This
provision is intended to supplement (and not to limit) other provisions of this
Lease pertaining to indemnities and/or attorneys' fees.

19.   FEES AND EXPENSES.

      A.  Curing Tenant's Defaults. If Tenant shall default in the observance or
performance of any term or covenant on Tenant's part to be observed or performed
under or by virtue of any of the terms or provisions in any Article of this
Lease, Landlord may immediately or at any time thereafter on five (5) days'
notice perform the same for the account of Tenant, and if Landlord makes any
expenditures or incurs any obligations for the payment of money in connection
therewith including, but not limited to reasonable attorneys' fees and
disbursements in instituting, prosecuting or defending any action or proceeding,
such sums paid or obligations incurred with interest and costs shall be deemed
to be additional rent hereunder and shall be paid by Tenant to Landlord within
five (5) days of rendition of any bill or statement to Tenant therefor.

      B.  Late Charges.

      (i) If any installment of Minimum Rent or any additional rent shall not be
paid within five (5) days after such installment of Minimum Rent or additional
rent shall have first become due, Tenant shall also pay to Landlord (a) an
administrative late charge in the amount of $400.00, and (b) interest thereon
from the due date until such installment of Minimum Rent or additional rent is
fully paid at the rate of one and one-half (1 1/2%) percent per month, or the
applicable maximum legal rate of interest, whichever is lower (the "Interest
Rate"). Such administrative late charge and interest charge shall be due and
payable as additional rent with the next monthly installment of Minimum Rent.

      (ii) All Rent payments, if paid more than ten (10) days after the same
shall have first become due, shall be paid by certified or bank check only.
Furthermore, in addition to all other rights and remedies available to Landlord,
in the event that Tenant makes any Rent payments more than ten (10) days after
the same shall have first become due twice during any consecutive twelve (12)
month period, Tenant shall make all further Rent payments, whether timely or
late, by certified or bank check, until such time as Landlord determines that a
regular check will be acceptable.

      (iii) If any check delivered to Landlord in full or partial payment of any
amounts due to Landlord pursuant to the terms of this Lease shall not be honored
by reason of insufficient or uncollected funds or for any other reason, then (x)
Tenant shall pay to Landlord a service charge on account thereof in the amount
of $400.00, which service charge shall be due and payable as additional

                                       28
<PAGE>

rent with the next monthly installment of Minimum Rent, and (y) all subsequent
payments of any amounts due to Landlord pursuant to the terms of this Lease for
the next twelve (12) months shall, if Landlord so requests, be made by certified
or bank check.

20.   NO REPRESENTATIONS BY LANDLORD. Landlord or Landlord's agents have made no
representations or promises with respect to the Building, the Real Property,
the Premises or Taxes (as defined in Article 28 hereof) except as herein
expressly set forth and no rights, easements or licenses are acquired by Tenant
by implication or otherwise except as expressly set forth herein. All references
in this Lease to the consent or approval of Landlord shall be deemed to mean
the written consent of Landlord or the written approval of Landlord and no
consent or approval of Landlord shall be effective for any purpose unless such
consent or approval is set forth in a written instrument executed by Landlord.

21.   END OF TERM.

      A. Surrender of Premises. Upon the, expiration or other termination of the
Term, Tenant shall quit and surrender to Landlord the Premises, broom clean, in
good order and condition, ordinary wear and tear and damage for which Tenant is
not responsible under the terms of this Lease excepted, and Tenant may remove
all of its property pursuant to Article 3 hereof. Tenant's obligation to observe
or perform this covenant shall survive the expiration or sooner termination of
the Term. If the last day of the Term or any renewal thereof falls on Saturday
or Sunday this Lease shall expire' on the business day immediately preceding.
Tenant expressly waives, for itself and for any person claiming through or under
Tenant, any rights which Tenant or any such person may have under the provisions
of Section 2201 of the New York Civil Practice Law and of any successor law of
like import then in force in connection with any holdover summary proceedings
which Landlord may institute to enforce the provisions of this Article 21. In
addition, the parties recognize and agree that the damage to Landlord resulting
from any failure by Tenant to timely surrender possession of the Premises as
aforesaid will be substantial, will exceed the amount of the monthly
installments of the Rent theretofore payable hereunder, and will be impossible
to accurately measure. Tenant therefore agrees that if possession of the
Premises is not surrendered to Landlord within twenty-four (24) hours after the
Expiration Date or sooner termination of the Term, in addition to any other
rights or remedy Landlord may have hereunder or at law, Tenant shall pay to
Landlord for each month and for each portion of any month during which Tenant
holds over in the Premises after the Expiration Date or sooner termination of
this Lease, a sum equal to the greater of (i) the then fair market rental value
for the Premises as determined by Landlord, and (ii) two (2) times the aggregate
of that portion of the Rent and the additional rent which was payable under this
Lease during the last month of the Term. Nothing herein contained shall be
deemed to permit Tenant to retain possession of the Premises after the
Expiration Date or sooner termination of this Lease and no acceptance by
Landlord of payments from Tenant after the Expiration Date or sooner termination
of the Term shall be deemed to be other than on account of the amount to be paid
by Tenant in accordance with the provisions of this Article 21, which provisions
shall survive the Expiration Date or sooner termination of this Lease.

      B. Holdover by Tenant. If Tenant shall hold-over or remain in possession
of any portion of the Premises beyond the Expiration Date of this Lease,
notwithstanding the acceptance of any Rent and additional rent paid by Tenant
pursuant to Subsection A of this Article 21, Tenant shall be subject not only to
summary proceeding and all damages related thereto, but also to any damages
arising out of lost opportunities (and/or new leases) by Landlord to re-let the
Premises (or any part thereof). All damages to Landlord by reason of such
holding over by Tenant may be the subject of a separate action and need not be
asserted by Landlord in any summary proceedings against Tenant.

                                       29
<PAGE>

22.  QUIET ENJOYMENT. Landlord covenants and agrees with Tenant that upon Tenant
paying the Rent and additional rent and observing and performing all the terms,
covenants and conditions, on Tenant's part to be observed and performed, tenant
may peaceably and quietly enjoy the Premises subject, nevertheless, to the terms
and conditions of this Lease including, but not limited to, Article 16 hereof
and to all Superior Leases and Mortgages.

23.  FAILURE TO GIVE POSSESSION. Except as otherwise expressly set forth herein,
Tenant waives any right to rescind this Lease under Section 223-a of the New
York Real Property Law or any successor statute of similar import then in force
and further waives the right to recover any damages which may result from
Landlord's failure to deliver possession of the Premises on the date set forth
herein for the commencement of the Term. If Landlord shall be unable to give
possession of the Premises on such date, and provided Tenant is not responsible
for such inability to give possession, the Rent reserved and covenanted to be
paid herein shall not commence until the possession of the Premises is given or
the Premises are available for occupancy by Tenant, and no such failure to give
possession on such date shall in anyway affect the validity of this Lease or
the obligations of Tenant hereunder or give rise to any claim for damages by
Tenant or claim for rescission of this Lease, nor shall same be construed in
anyway to extend the Term. If permission is given to Tenant to enter into the
possession of the Premises or to occupy premises other than the Premises prior
to the Commencement Date, Tenant covenants and agrees that such occupancy shall
be deemed to be under all the terms, covenants, conditions and provisions of
this Lease, including the covenant to pay Rent.

24.   NO WAIVER. If there be any agreement between Landlord and Tenant providing
for the cancellation of this Lease upon certain provisions or contingencies
and/or an agreement for the renewal hereof at the expiration of the Term, the
right to such renewal or the execution of a renewal agreement between Landlord
and Tenant prior to the expiration of the Term shall. not be considered an
extension thereof or a vested right in Tenant to such further term, so as to
prevent Landlord from canceling this Lease and any such extension thereof during
the remainder of the original Term; such privilege, if and when so exercised by
landlord, shall cancel and terminate this Lease and any such renewal or
extension previously entered into between Landlord and Tenant or the right of
Tenant to any such renewal or extension; any right herein contained on the part
of Landlord to cancel this Lease shall continue during any extension or renewal
hereof; any option on the part of Tenant herein contained for an extension or
renewal hereof shall not be deemed to give Tenant any option for a further
extension beyond the first renewal or extended term. No act or thing done by
Landlord or Landlord's agents during the Term shall be deemed an acceptance of a
surrender of the Premises, and no agreement to accept such surrender shall be
valid unless in writing signed by Landlord. No employee of Landlord or of
Landlord's agents shall have any power to accept the keys of the Premises prior
to the termination of this Lease. The delivery of keys to any employee of
landlord or of landlord's agents shall not operate as a termination of this
Lease or a surrender of the Premises. In the event Tenant at any time desires to
have Landlord sublet the Premises for Tenant's account, Landlord or Landlord's
agents are authorized to receive said keys for such purpose without releasing
Tenant from any of the obligations under this Lease, and Tenant hereby relieves
Landlord of any liability for loss of or damage to any of Tenant's effects in
connection with such subletting. The failure of Landlord to seek redress for
violation of, or to insist upon the strict performance of, any covenant or
condition of this Lease, or any of the Rules and Regulations set forth or
hereafter adopted by Landlord, shall not prevent a subsequent act, which would
have originally constituted a violation, from having all force and effect of an
original violation. The receipt by Landlord of Rent with knowledge of the breach
of any covenant of this Lease shall not be deemed a waiver of such breach. The
failure of Landlord to enforce any of the Rules and Regulations set forth, or
hereafter adopted, against Tenant and/or any other: tenant in the Building shall
not be deemed a waiver of any such Rules and Regulations. No provision of this
Lease shall be deemed to have been waived by Landlord unless such waiver be in
writing signed by Landlord. No payment by Tenant or receipt by Landlord, of a
lesser

                                       30
<PAGE>

amount than the monthly Rent herein stipulated shall be deemed to be other than
on account of the earliest stipulated Rent, or as Landlord may elect to apply
same, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as Rent be deemed an accord and satisfaction,
and Landlord may accept such check or payment without prejudice to Landlord's
right to recover the balance of such Rent or pursue any other remedy in this
Lease provided. This Lease contains the entire agreement between the parties and
all prior negotiations and agreements are merged in this Lease. Any executory
agreement hereafter made shall be ineffective to change, modify, discharge or
effect an abandonment of it in whole or in part unless such executory agreement
is in writing and signed by the party against whom enforcement of the change,
modification, discharge or abandonment is sought.

25.   WAIVER OF TRIAL BY JURY. It is mutually agreed by and between Landlord and
Tenant that the respective parties hereto shall and they hereby do waive trial
by jury in any action, proceeding or counterclaim brought by either of the
parties hereto against the other on any matters whatsoever arising out of or in
any way connected with this Lease, the relationship of Landlord and Tenant,
Tenant's use or occupancy of the Premises, and/or any claim of injury or damage,
or for the enforcement of any remedy under any statute, emergency or otherwise.
It is further mutually agreed that in the event Landlord commences any
summary proceeding (whether for nonpayment of rent or because Tenant continues
in possession of the Premises after the expiration or termnination of the Term),
Tenant will not interpose any counterclaim (except for mandatory or compulsory
counterclaims) of whatever nature or description in any such proceeding.

26.   INABILITY TO PERFORM. This lease and the obligation of Tenant to pay Rent
and additional rent hereunder and perform all of the other covenants and
agreements hereunder on the part of Tenant to be performed shall in nowise be
affected, impaired or excused because Landlord is unable to fulfill any of its
obligations under this Lease expressly or impliedly to be performed by Landlord
or because Landlord is unable to make, or is delayed in making, any repairs,
additions, alterations, improvements or decorations or is unable to supply or is
delayed in supplying any equipment or fixtures if Landlord is prevented or
delayed from so doing by reason of strikes or labor troubles or by accident or
by any cause whatsoever reasonably beyond Landlord's control, including but not
limited to, laws, governmental preemption in connection with a national
emergency or by reason of any rule, order or regulation of any federal, state,
county or municipal authority or any department or subdivision thereof or any
government agency or by reason of the conditions of supply and demand which have
been or are affected by war or other emergency.

27.   BILLS AND NOTICES. Except as otherwise expressly provided in this Lease,
any bills, statements, notices, demands, requests or other communications given
or required to be given under this Lease shall be deemed sufficiently given
or rendered if in writing, sent postage prepaid, by registered or certified mail
(return receipt requested), or via overnight courier addressed (a) to Tenant
(i) at Tenant's address set forth in this Lease if mailed prior to Tenant's
taking possession of the Premises, or (ii) at the Building if mailed subsequent
to Tenant's taking possession of the Premises, or (iii) at any place where
Tenant or any agent or employee of Tenant may be found if mailed subsequent to
Tenant's vacating, deserting, abandoning or surrendering the Premises, or (b)
to Landlord at Landlord's address set forth in this Lease, or (c) to such other
address as either Landlord or Tenant may designate as its new address for such
purpose by notice given to the others in accordance with the provisions of this
Article 27. Tenant hereby acknowledges and agrees that any such bill, statement,
demand, notice, request or other communication may be given by Landlord's agent
on behalf of Landlord. Any Landlord's Statement, bill, notice or other
communication by Landlord with respect to Rent may be given by regular mail and
need not be sent to any party other than Tenant. Any such bill, statement,
demand, notice, request or other communication shall be deemed to have been
rendered or given on the date when it shall have been mailed as provided in this
Article 27.

                                       31
<PAGE>

28.   ESCALATIONS.

      A.  Defined Terms. In a determination of any increase in the Rent under
the provisions of this Article 28, Landlord and Tenant agree as follows:

          (i) "TAXES" shall mean the aggregate amount of real estate taxes and
any special or other assessments (exclusive of penalties and interest thereon)
imposed upon the Real Property and real estate taxes or assessments imposed in
connection with the receipt of income or rents from the Building to the extent
that same shall be in lieu of all or a portion of the aforesaid taxes or
assessments, or additions or increases thereof, including, without limitation,
(a) assessments made upon or with respect to any air rights, and (b) any
assessments levied after the date of this Lease for public benefits to the Real
Property or the building (excluding an amount equal to the assessments payable
in whole or in part during or for the Base Tax Year) which assessments, if
payable in installments, shall be deemed payable in the maximum number of
permissible installments and there shall be included in real estate taxes for
each Comparison Year (hereinafter defined) in which such installments may be
paid, the installments of such assessment so becoming payable during such
Comparison Year (in the manner in which such taxes and assessments are imposed
as of the date hereof); provided, that if because of any change in the taxation
of real estate, any other tax or assessment (including, without limitation, any
occupancy, gross receipts, rental, income, franchise, transit or other tax) is
imposed upon Landlord or the owner of the Real Property or the Building, or the
occupancy, rents or income therefrom, in substitution for or in addition to, any
of the foregoing Taxes, such other tax or assessment shall be deemed part of the
Taxes. With respect to any Comparison Year all expenses, including attorneys'
fees and disbursements, experts' and other witnesses' fees, incurred in
contesting the validity or amount of any Taxes or in obtaining a refund of Taxes
shall be considered as part of the Taxes for such year.

          (ii) "ASSESSED VALUATION" shall mean the amount for which the Real
Property is assessed pursuant to applicable provisions of the New York City
Charter and of the Administrative Code of the City of New York for the purpose
of imposition of Taxes.

          (iii) "TAX YEAR" shall mean the period July 1 through June 30 (or such
other period as hereinafter may be duly adopted by the City of New York as its
fiscal year for real estate tax purposes).

          (iv) "BID CHARGES" shall mean business improvement district taxes and
similar charges imposed on the Building and/or the Real Property and any
expenses incurred by Landlord in contesting the same.

          (v) "BID PAYMENT" shall mean Tenant's Proportionate Share of BID
Charges.

          (vi) "INSURANCE EXPENSE" shall mean all premiums and deductibles paid
or incurred by Landlord or on Landlord's behalf in respect of insurance for the
Building and the fixtures, machinery and equipment in the Building, including
(i) commercial general liability insurance, (ii) boiler and machinery insurance,
(iii) "all-risk" casualty insurance, (iv) insurance for protection against acts
of terrorism, including bioterrorism, and (v) workers' compensation, disability
and such other insurance covering all persons employed at the Building.

          (vii) "BASE INSURANCE EXPENSE" shall mean the Insurance Expense for
the Base Insurance Year.

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<PAGE>

          (viii) "SECURITY EXPENSE" shall mean all costs and expenses paid or
incurred by Landlord or on Landlord's behalf in respect of security for the Real
Property, the Building, the building Systems, sidewalks, curbs, plazas and other
areas adjacent to the Building.

          (ix) "BASE SECURITY EXPENSE" shall mean the Security Expense for the
Base Security Year.

          (x) "COMPARISON YEAR" shall mean (a) with respect to Taxes, any
calendar year during the Term (or such other fiscal or accounting period as
Landlord may reasonably elect), (b) with respect to BID Charges, any calendar
year during the Term, (c) with respect to Insurance Expense, any calendar year
during the Term subsequent to the Base Insurance Year, and (d) with respect to
Security Expense, any calendar year during the Term subsequent to the Base
Security Year, for any part or all of which there is an increase in the Rent
pursuant to Subsection B of this Article 28.

          (xi) "LANDLORD'S STATEMENT" shall mean an instrument or instruments
containing a comparison of any increase or decrease in the Rent for the
preceding Comparison Year pursuant to the provisions of this Article 28.

      B.  Escalation.

          (1) If the Taxes payable for any Comparison Year (any part or all of
which falls within the Term) shall represent an increase above the Base Tax
Amount, then the Rent for such Comparison Year and continuing thereafter until a
new Landlord's Statement is rendered. to Tenant, shall be increased by Tenant's
Proportionate Share of such increase (a "Tax payment"). The Taxes shall be
initially computed on the basis of the Assessed Valuation in effect at the time
Landlord's Statement is rendered (as the Taxes may have been settled or finally
adjudicated prior to such time) regardless of any then pending application,
proceeding or appeal respecting the reduction of any such Assessed valuation,
but shall be subject to subsequent adjustment as provided in Subsection
D(1)(a) of this Article 28. Tenant shall also pay for each Comparison Year the
BID Payment.

          (2) If there are BID Charges payable during any Comparison Year (any
part or all of which falls within the Term), then the Rent for such Comparison
Year and continuing thereafter until a new Landlord's Statement is rendered to
Tenant, shall be increased by the amount of the BID Payment.

          (3) If the Insurance Expense payable for any Comparison Year (any
part or all of which falls within the Term) shall represent an increase above
the Base Insurance. Expense; then the Rent for such Comparison Year and
continuing thereafter until a new Landlord's Statement is rendered to Tenant,
shall be increased by Tenant's Proportionate Share of such increase (an
"INSURANCE PAYMENT").

          (4) If the Security Expense payable for any Comparison Year (any part
or all of which falls within the Term) shall represent an increase above the
Base Security Expense, then the Rent for such Comparison Year and continuing
thereafter until a new Landlord's Statement is rendered to Tenant, shall be
increased by Tenant's Proportionate Share of such increase (a "Security
Payment").

      C.  Payment of Escalations.

          (1) At any time prior to, during or after any Comparison Year Landlord
shall render to Tenant a Landlord's Statement or Statements showing separately
or together (i) a comparison of the Taxes payable for the Comparison Year with
the Base Tax Amount, (ii) the BID Charges, (iii) a comparison of the Insurance
Expense payable for the Comparison Year with the Base Insurance Expense,

                                       33
<PAGE>

          (iv) a comparison of the Security Expense Payable for the Comparison
Year with the Base Security Expense, and (v) the amount of the increase in the
Rent resulting therefrom. Landlord's failure to render a Landlord's Statement
and/or receive payments with respect thereto during or with respect to any
Comparison Year shall not prejudice Landlord's right to render a Landlord's
Statement and/or receive payments with respect thereto during or with respect to
any subsequent Comparison Year, and shall not eliminate or reduce Tenant's
obligation to pay increases in the Rent pursuant to this Article 28 for such
Comparison Year. Landlord may also at any time and from time to time, furnish
to Tenant a revised Landlord's Statement or Statements showing separately or
together (a) a comparison of the Taxes payable for the Comparison Year with the
Base. Tax Amount, (b) the BID Charges, (c) a comparison of the Insurance Expense
for the Comparison Year with the Base Insurance Expense, and (d) a comparison of
the Security Expense with the Base Security Expense.

          (2) (i) With respect to an increase in the Rent resulting from (a) an
increase in the Taxes for any Comparison Year above the Base Tax Amount, and/or
(b) the imposition of BID Charges, Tenant shall pay to Landlord a sum equal to
one-half (%) of such amount on the first day of June and a sum equal to one-half
(%) of such amount on the first day of December of each calendar year. If
Landlord's Statement shall be furnished to Tenant after the commencement of the
Comparison Year to which it relates, then (1) until Landlord's Statement is
rendered for such' Comparison Year, Tenant shall pay (1) Tenant's Proportionate
Share of Taxes for such Comparison Year, and (2) the BID Payment, in semi-annual
installments, as described above, based upon the last prior Landlord's Statement
rendered to Tenant with respect to Taxes and/or BID Charges, and (II) Tenant
shall, within ten (10) days after Landlord's Statement is furnished to Tenant,
pay to Landlord an amount equal to any underpayment of the Tax Payment and/or
the BID Payment theretofore paid by Tenant. for such Comparison Year and, in the
event of an overpayment by Tenant, Landlord shall permit Tenant to credit
against subsequent payments under this Subsection the amount of such
overpayment. At Landlord's option, Landlord may deliver to Tenant a statement
setting forth Landlord's estimate of the Tax Payment and/or BID Charges for the
next succeeding Tax Year (the "ESTIMATED AMOUNT"). In such event, Tenant shall
pay the Estimated Amount in advance in equal monthly installments together with
that month's installment of Minimum Rent. In the event of an overpayment or
underpayment by Tenant, the difference shall be adjusted in accordance with the
terms of this Article 28. The benefit of any discount for any early payment or
prepayment of Taxes and Bid Charges shall accrue solely to the benefit of
Landlord, and such discount shall not be subtracted from the Tax Payment or the
BID Payment, respectively. Tenant shall be obliged to pay the Tax Payment and/or
the BID Payment regardless of whether Tenant is exempt, in whole or in part,
from the payment of any Taxes by reason of Tenant's diplomatic status or
otherwise.

          (ii) Tenant's obligations with respect to increases in the Insurance
Expense and/or in the Security Expense shall be payable by Tenant on the first
day of the month following the furnishing to Tenant of a Landlord's Statement
with respect to the Insurance Expense and/or the Security Expense in an amount
equal to one-twelfth (1/12th) of such increase in the Rent multiplied by the
number of months (and any fraction thereof) of the Term then elapsed since the
commencement of the Comparison Year for which the increase is applicable,
together with a sum equal to one-twelfth (1/12th) of such increase with respect
to the month following the furnishing to Tenant of a Landlord's Statement; and
thereafter, commencing with the next succeeding monthly installment of Rent and
continuing monthly thereafter until rendition of the next succeeding Landlord's
Statement, the monthly installments of Rent shall be increased by an amount
equal to one-twelfth (1/12th) of such increase. Any increase in the Rent shall
be collectible by Landlord in the same manner as Rent. At Landlord's option,
Landlord may deliver to Tenant a statement setting forth Landlord's estimate of
the Insurance Expense and/or the Security Expense for the next succeeding
Comparison Year (the "ESTIMATED AMOUNT"). In such event, Tenant shall pay the
Estimated Amount in advance in equal monthly installments together with that
month's

                                       34
<PAGE>

installment of Minimum Rent. In the event of an overpayment or underpayment by
Tenant, the difference shall be adjusted in accordance with the terms of this
Article 28.

          (3) Following each Landlord's Statement, a reconciliation shall be
made as follows: Tenant shall be debited with any increase in the Rent shown on
such Landlord's Statement and credited with the aggregate, if any, paid by
Tenant on account in accordance with the provisions of Subsection C for the
Comparison Year in question; Tenant shall pay any net debit balance to Landlord
within fifteen (15) days next following rendition by Landlord of an invoice for
such net debit balance; any net credit balance shall, be applied against the
next accruing monthly installment of Rent.

      D.  Adjustments.

          (i) (a) In the event that, after a Landlord's Statement has been sent
to Tenant, an Assessed Valuation which had been utilized in computing the Taxes
or the BID Charges for a Comparison Year is reduced (as a result of settlement,
final determination of legal proceedings or otherwise), and as a result thereof
a refund of Taxes or BID Charges is actually received by or on behalf of
Landlord, then, promptly after receipt of such refund, Landlord shall send
Tenant a statement adjusting the Tax Payment or the BID Payment for such
Comparison Year (taking into account the. expenses mentioned in the last
sentence of Subsection A(i) of this Article 28) and setting forth Tenant's
Proportionate Share of such red and Tenant shall be entitled to receive such
share by way of a credit against the Rent next becoming due after the sending of
such Landlord's Statement; provided, however, that (A) Tenant's Share of such
refund shall be limited to the amount, if any, which Tenant had theretofore paid
to Landlord as increased Rent for such Comparison Year on the basis of the
Assessed Valuation before it had been reduced, and (B) if Tenant is in default
hereunder at such time, Tenant shall not receive such credit until such time as
such default has been cured by Tenant.

          (b) In the event that, after a Landlord's Statement has been sent to
Tenant, the Assessed Valuation which had been utilized in computing the Base Tax
Amount is reduced (as a result of settlement, final determination of legal
proceedings or otherwise) then, and in such event: (A) the Base Tax Amount shall
be retroactively adjusted to reflect such reduction, (B) the monthly installment
of Rent shall be increased accordingly, and (C) all retroactive additional rent
resulting from such retroactive adjustment shall be forthwith payable when
billed by Landlord. Landlord promptly shall send to Tenant a statement setting
forth the basis for such retroactive adjustment and additional rent payments.

          (ii) Any Landlord's Statement sent to Tenant shall be conclusively
binding upon Tenant unless, within thirty (30) days after such statement is
sent, Tenant shall (a) pay to Landlord the amount set forth in such statement,
without prejudice to Tenant's right to dispute the same, and (b) send a written
notice to Landlord objecting to such statement and specifying the particular
respects in which such statement is claimed to be incorrect. The parties
recognize the unavailability of Landlord's books and records because of the
confidential nature thereof.

          (iii) Anything in this Article 28 to the contrary notwithstanding,
under no circumstances shall the rent payable under this Lease be less than the
Minimum Rent set forth herein.

          (iv) The expiration or termination of this Lease during any Comparison
Year for any part or all of which there is an increase in the Rent under this
Article shall not affect the rights or obligations of the parties hereto
respecting such increase and any Landlord's Statement relating to such increase
may, on a pro rata basis, be sent to Tenant subsequent to, and all such rights
and obligations shall survive, any such expiration or termination. Any payments
due under such Landlord's Statement shall be payable within ten (10) days after
such statement is sent to Tenant.

                                       35
<PAGE>

          E. Operating Cost Increase. In order to reflect Tenant's agreed upon
portion of the cost to Landlord (and increases thereto) for the operation,
cleaning, repair, safety, replacement, management, security and maintenance of
the Real Property, the Building and the Building Systems, sidewalks, curbs,
plazas and other areas adjacent to the Building with respect to the services
provided to tenants of the Building, commencing on the first (1st) anniversary
of the Commencement Date, and to occur on each subsequent anniversary of the
Commencement Date throughout the Term, the Minimum Rent payable by Tenant shall
be increased by two and one half (2 1/2%) percent on a compounded basis, which
shall be calculated by multiplying the Minimum Rent then payable by Tenant (as
previously escalated pursuant to this Subsection E, and including any fixed
increases) by two and one half (2 1/2%) percent, the product of which shall be
added to the Minimum Rent then payable by Tenant (as previously escalated
pursuant to this Subsection E, and including any fixed increases), and the
resulting sum of which shall be the Minimum Rent payable by Tenant under this
Lease until the next anniversary of the Commencement Date. As used in this
Subsection E, the term "Minimum Rent" shall exclude the Electricity Factor.

          F. Capital Improvements. If any alteration or capital improvement is
made to the Real Property or the Building during any calendar year during the
Term in compliance with Legal Requirement which becomes effective after the date
hereof, then Tenant shall, within ten (10) days following receipt of Landlord's
statement therefor, pay to landlord as additional rent commencing with the year
in which such costs are incurred, Tenant's Proportionate Share of such costs,
amortized on a straight-line basis over the life of such alteration or
improvement but not in excess of fifteen (15) years), as computed in accordance
with generally accepted accounting principles, consistently applied, with
interest thereon. For the purposes of this Subsection F, the cost of any such
alteration or improvement shall be deemed, to include the cost of preparing any
necessary plans and the fees for filing such plans.

29.   SERVICES.

          A. Elevator. Landlord shall provide non-exclusive passenger elevator
facilities on business days from 8:30 a.m. to 6:00 p.m. and shall have one
passenger elevator in the bank of elevators servicing the Premises available at
all other times. Landlord shall provide non-exclusive freight elevator services
on an "as available" basis for incidental use by Tenant during such times as
shall be designated by Landlord, in its discretion, from time to time. Tenant
shall pay Landlord for usage of the freight elevator at Landlord's standard
rates, which rates may change from time to time without notice. Use of the
freight elevator shall in all events be arranged by Tenant on not less than
twenty-four (24) hours prior notice and shall be provided by Landlord to the
extent that no conflict exists with other tenants or other parties requesting
such usage (all such conflicts to be resolved by Landlord, in Landlord's sole
discretion).

          B. HVAC.

          (i) Landlord shall cause air conditioning to be furnished to Tenant
from the central building HVAC system (the "HVAC System") from May 15th through
September 30th, on business days from 8:30 a.m. to 6:00 p.m., in accordance
with the HVAC specifications set forth subparagraph (ii) below.

          (ii) Based on an average electric load of five (5) watts demand load
per usable square foot and one person per 100 square feet of net usable area of
the Premises, Landlord represents that the HVAC System is capable of supplying
heating and air-conditioning to the Premises in accordance with the following
specifications:

                                Summer Conditions

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<PAGE>

      Inside Temperature                              Outside Temperature
      ------------------                              -------------------
      78(degree) F dry bulb                           when outside temperature
      50% relative humidity                           is 95(degree) F

                                Winter Conditions

      Inside Temperature                              Outside Temperature
      ------------------                              -------------------
      68(degree) F dry bulb                           when outside temperature
                                                      is 0(degree) F

Notwithstanding the foregoing, Landlord makes no representation and Landlord
shall have no obligation or liability with respect to the performance of the
HVAC System by reason of (a) the use of the Premises, or any part thereof, in a
manner exceeding the design conditions specified in this subparagraph, (b) the
arrangement or rearrangement of partitioning or of the ceiling distribution
system which interferes with normal operation of the heating and
air-conditioning in the Premises, (c) the use of computer or data processing
machines or other machines or equipment, except for normal desk-top machines and
business equipment, (d) the failure of Tenant to comply with the provisions of
this Lease, which failure shall affect the performance of the HVAC System, (e)
the performance of or any defects in any work or alterations done or caused to
be done by Tenant, (f) any other matter relating to the distribution of HEATING
and air-conditioning within the Premises or (g) the requirements of any law,
order or regulation of any governmental subdivision or agency (or any officer
thereof) or the requirements of any insurance bodies. Tenant shall not be
released or excused from the performance of any of its obligations under this
Lease for any failure or for interruption or curtailment of any air
conditioning, for any reason whatsoever, and no such failure, interruption or
curtailment shall constitute a constructive or partial eviction.

          (iii) Tenant agrees to keep all windows closed when the HVAC System is
in operation and to comply with all reasonable requirements which Landlord
prescribes for the proper functioning and protection of the HVAC System.

          (iv) Only Landlord shall have access to the HVAC System equipment.
Landlord may suspend air conditioning because of accidents, repairs,
alterations, or improvements which Landlord determines are desirable or
necessary, or to comply with governmental restrictions, or other causes beyond
the reasonable control of the Landlord, or because of shortage of or difficulty
in obtaining energy. No diminution or abatement of rent or other charges shall
be claimed by Tenant, nor shall this Lease or any of the obligations of the
Tenant be affected by reason of such suspension of air conditioning.

          (v) Repairs and maintenance of supplemental air conditioning units,
whether currently existing in the Premises or added in the future will be the
sole responsibility of Tenant.

          (vi) Landlord shall furnish heat (when and as required by law) to the
Premises, on business days from 8:30 a.m. to 6:00 p.m. Landlord shall be
responsible for the maintenance, repair and replacement of the radiators and
connecting pipes contained within the Premises, except where the need for repair
or replacement is caused by Tenant, or by any of Tenant's agents, employees,
contractors, invitees, sublessees, servants, licensees or assignees.

      C.  After Hours and Additional Services. The Rent does not include any
charge to Tenant for the furnishing of any additional passenger elevator
facilities, any freight elevator facilities or for the service of heat or air
conditioning to the Premises during periods other than the hours and days, set
forth in

                                       37
<PAGE>

Subsections A and B of this Article 29 for the furnishing and distributing of
such facilities or services (referred to as "OVERTIME PERIODS"). Accordingly, if
Landlord shall furnish any (i) passenger elevator facilities to Tenant during
Overtime Periods or freight elevator facilities, or (ii) heat or air
conditioning to the Premises during Overtime Periods, then Tenant shall pay
Landlord additional rent for such facilities or services at the standard rates
then fixed by the Landlord for the Building or, if no such rates are then fixed,
at reasonable rates. Neither the facilities nor the services referred to in this
Subsection shall be furnished to Tenant or the Premises if Landlord has not
received advance notice from tenant specifying the particular facilities or
services requested by Tenant at least twenty four (24) hours prior to the date
on which the facilities or services are to be furnished; or if Tenant is in
default under or in breach of any of the terms, covenants or conditions of this
Lease; or if Landlord shall determine, in its sole and exclusive discretion,
that such facilities or services are requested in connection with, or the use
thereof shall create or aid in a default under or a breach of any term, covenant
or condition of this Lease. All of the facilities and services referred to in
this Subsection are conveniences and are not and shall not be deemed to be
appurtenances to the Premises, and the failure of Landlord to furnish any or all
of such facilities or services shall not constitute or give rise to any claim of
an actual or constructive eviction, in whole or in part, or entitle Tenant to
any abatement or diminution of Rent, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Landlord or its
agents by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant's business or otherwise. Landlord may limit the
furnishing during Overtime Periods of any of the facilities or services referred
to in this Article 29 to a total of twenty (20) hours in any one week. If more
than one tenant utilizing the same system as Tenant requests the same Overtime
Periods for the same services as Tenant, the charge to Tenant shall be adjusted
pro rata.

      D.  Cleaning. Landlord, at its expense, shall cause the Premises and
Building common areas to be cleaned in accordance with the cleaning
specifications set forth on Exhibit 2 annexed hereto and made a part hereof.
Tenant shall pay to Landlord, on demand and as additional rent, any costs
incurred by Landlord for (i) extra cleaning work in the Premises required
because of misuse use or neglect on the part of Tenant or its employees or
visitors, (ii) use of portions of the Premises for the preparation, serving or
consumption of food or beverages, data processing or reproducing operations,
other than normal internal office use, private lavatories or toilets, or other
special purposes requiring greater or more difficult cleaning work than office
areas, (iii) any unusual quantity of interior glass surfaces, and (iv) any
non-building standard materials or finishes installed by Tenant or at its
request. Landlord, its cleaning contractor and their employees shall have access
to the Premises either during regular business hours or after hours, and the
free use of light, power and water therein, as is reasonably required for the
purpose of cleaning the. Premises in accordance with Landlord's obligations
hereunder.

      E.  Trash Removal.

          (i) Tenant covenants and agrees, at its sole cost and expense, to
comply with all present and future Legal Requirements regarding the collection,
sorting, separation and recycling of waste products, garbage, refuse and trash
(collectively "RUBBISH"). Tenant shall sort and separate the Rubbish into such
categories as provided by law. Each separately sorted category of Rubbish shall
be placed in separate receptacles reasonably approved by Landlord. Such separate
receptacles may, at Landlord's option, be removed from the Premises in
accordance with a collection schedule prescribed by law.

          (ii) Tenant shall pay all costs, expenses, fines penalties or damages
that may be imposed on Landlord or Tenant by reason of tenant's failure to
comply with the provisions of trash or recycling laws and, at Tenant's sole cost
and expense, shall indemnify, defend and hold Landlord harmless (including legal
fees and expenses) from and against any actions, claims and suits arising from
such noncompliance, utilizing counsel reasonably satisfactory to Landlord.

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          (iii) Tenant shall pay Landlord for the cost of removal from the
Premises and the Building of so much of Tenant's Rubbish (a) as shall exceed
that ordinarily accumulated daily in the routine of business office occupancy,
or (b) resulting from any use of the Premises during hours other than usual
business hours (collectively, "EXTRA RUBBISH REMOVAL"). The reimbursement for
Extra Rubbish Removal shall be made by Tenant to Landlord, as additional rent,
within ten (10) days after bills are rendered therefor.

      F.  Sprinkler System. Anything elsewhere in this Lease to the contrary
notwithstanding, if the New York Board of Fire Underwriters or the New York
Insurance Rating Organization or any bureau, department or official of the state
or city government requires or recommends that any changes, modifications,
alterations or additional sprinkler heads or other equipment be made or supplied
to the sprinkler system by reason of Tenant's business, or the location of the
partitions, trade fixtures, or other contents of the Premises, then Tenant
shall, at Tenant's expense, or, at Landlord's election, Landlord shall, at
Tenant's expense, promptly make and supply such changes, modifications,
alterations, additional sprinkler heads or other equipment (pursuant to
submission of necessary engineering plans and specifications for Landlord's
reasonable approval), whether the work involved shall be structural or non-
structural in nature.

      G.  Water. Landlord shall furnish water to the Premises for drinking and
lavatory purposes to the extent piping and fixtures presently exist therein. If
Tenant uses water for any purpose other than ordinary drinking and lavatory
uses, Landlord may install water meter to measure Tenant's water consumption
for all purposes and Tenant agrees to pay for the installation and maintenance
thereof and for water consumed as shown on said meter and any sewer rent or tax
based thereon.

      H.  Electricity Service.

          (1) Landlord, at Landlord's expense, shall furnish electrical energy
to or for the use of Tenant in the Premises for the operation or servicing of
the lighting fixtures and the electrical receptacles installed in the Premises
on the Commencement Date. There shall be no specific charge by way of measuring
such electrical energy on any meter or otherwise, as the charge for the service
of redistributing or furnishing such electrical energy has been included in the
Rent on a so-called "rent inclusion" basis. The parties agree that although the
charge for the service of redistributing or furnishing electrical energy is
included in the Rent on a rent inclusion basis, the value to Tenant of such
service may not be fully reflected in the Rent. Accordingly, Tenant agrees that
Landlord may cause an independent electrical engineer or electrical consulting
firm, selected by Landlord, to make a final determination, following the
commencement of Tenant's normal business activities in the Premises, of the full
value to Tenant of such services supplied by Landlord, to wit: the estimated
consumption and demand of electrical energy supplied to Tenant annually based
upon the connected load and utilization of electricity by Tenant and the then
current on-peak rates of the public utility company serving the Premises. Such
engineer or consulting firm shall certify such determination in writing to
Landlord and Tenant, which shall be conclusive and binding upon Tenant. If it
shall be determined by such engineer or consulting firm that the full value to
Tenant of such service is in excess of the then Electricity Factor, the Rent and
the Electricity Factor shall be automatically and unconditionally increased,
without further act or instrument, retroactive to the date of the survey for the
balance of the Term (or until any subsequent determinations are made), by an
annual amount equal to such excess. However, if it shall be so determined that
the full value to Tenant of such service does not exceed the Electricity Factor,
there shall be no increase or decrease in the Rent or the Electricity Factor by
reason of such determination. Any such determination made by an engineer or
consulting firm shall be conclusive and binding upon Tenant. Therefore, Landlord
may, from time to time thereafter during the Term of this Lease, and at its sole
option, cause an engineer or consulting firm to make subsequent determinations
of the then full value of such services

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<PAGE>

supplied to Tenant on the basis hereinabove set forth, and if such value is in
excess of the then Electricity Factor, the Rent and the Electricity Factor shall
be adjusted accordingly.

          (2) If Tenant requires additional electrical energy beyond that
supplied by Landlord for any reason whatsoever, including without limitation,
the use of additional business machines, office equipment or other appliances in
the Premises which utilize electrical energy, Tenant shall request such
additional electrical energy from Landlord in each instance. If Landlord agrees
to provide the same, the Rent and the Electricity Factor will be increased
following a determination of the full value of such electrical service supplied
to Tenant pursuant to the procedure set forth in subparagraph (1) of this
Subsection H, plus a connection fee equal to landlord's then standard charge per
kilovolt ampere. In addition, any additional feeders or risers to be installed
to supply Tenant's additional electrical requirements, and all other equipment
proper and necessary in connection with such feeders or risers, shall be
installed by Landlord upon Tenant's request, at the sole cost and expense of
Tenant, provided that, in Landlord's judgment, such additional feeders or risers
are necessary and are permissible under applicable laws and insurance
regulations and the installation of such feeders or risers will not cause
permanent damage or injury to the Building or the Premises or cause or create a
dangerous or hazardous condition or entail excessive or unreasonable alterations
or interfere with or disturb other tenants or occupants of the Building. Tenant
covenants that at no time shall the use of electrical energy servicing the
Premises exceed the capacity of the existing feeders or wiring installations
then serving the Premises. Tenant shall not make or perform, or permit the
making. or performance of, any Alterations to wiring installations or other
electrical facilities in or serving the Premises without the prior consent of
Landlord in each instance and without paying Landlord's customary charges
therefor. Any such Alterations, additions or consent by Landlord shall be
subject to the provisions of subparagraph (3) of this Subsection H, as well as
to other provisions of this Lease including, but not limited to, the provisions
of Article 3 hereof.

          (3) If, at any time or times during the Term, electrical feeders,
risers, wiring or other electrical facilities serving the Premises shall be
installed by Landlord, Tenant or others, on behalf of Tenant or any person
claiming through or under Tenant in addition to the feeders, risers, wiring or
other electrical facilities necessary to serve the lighting fixtures and
electrical receptacles installed in the Premises on the Commencement Date, the
Rent, and Electricity Factor each shall be increased in an annual amount which
shall reflect the full value to Tenant of the additional service to be furnished
by Landlord, to wit: the estimated consumption of additional electrical energy
made available to Tenant annually based upon the connected load and utilization
of electricity by Tenant through such additional electrical feeders, risers,
wiring or other electrical facilities. The amount of any such increase in the
Rent and the Electricity Factor shall be finally determined by an independent
electrical engineer or electrical consulting firm selected by Landlord who
shall certify such determination in writing to Landlord and Tenant. Following
any such determination, the Rent and the Electricity Factor for the remainder of
the Term shall be increased in an annual amount equal to the value of such
additional service as so determined. Any such increase shall be effective as of
the date of the first availability to Tenant of such additional service and
shall be retroactive to such date if necessary.

          (4) If, at any time or times after the date of execution of this
Lease, the rates at which Landlord purchases electrical energy from the public
utility corporation supplying electrical service to the Building or any charges
incurred or taxes payable by Landlord in connection therewith shall be
increased, the Rent and the Electricity Factor shall be increased upon demand of
Landlord in an annual amount which shall fairly represent the estimated increase
in the annual value to Tenant of the electrical service provided by Landlord to
Tenant under the provisions of this Subsection H. If, within ten (10) days after
any such demand, Landlord and Tenant shall fail to agree upon the amount of such
increase in the Rent and the Electricity Factor then, in lieu of such agreement,
the estimated increase in the annual value to

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<PAGE>

Tenant of the electrical service provided by Landlord to Tenant under the
provisions of this Subsection H shall be finally determined by an independent
electrical engineer or electrical consulting firm selected by Landlord who shall
certify such determination in writing to Landlord and Tenant. Any such
determination made by an engineer or consulting firm shall be conclusive and
binding upon Tenant. Following any such agreement or determination of an
increase in such annual value, the Rent and the Electricity Factor for the
remainder of the Term shall be increased in an annual amount equal to such
estimated increase in the annual value to Tenant of the electrical service
provided by Landlord to Tenant under the provisions of this Subsection, as so
agreed or determined. Any such increase in the Rent and the Electricity Factor
shall be automatically and unconditionally effective without further act or
instrument, as of the date of such increase in rates, charges or taxes, and
shall be retroactive to such date if necessary. Anything in this subparagraph
(4) to the contrary notwithstanding, under no circumstances shall the
Electricity Factor be an amount less than the amount set forth herein, as
escalated.

          (5) Any increase in the Rent pursuant to the provisions of
Subparagraphs (1), (3) or (4) of this Subsection H with respect to the period
from the effective date of such increase to the last day of the month in which
such increase shall be fixed by agreement or determination shall be payable by
Tenant within ten (10) days of demand of Landlord. The monthly installments of
the Rent payable after the date upon which any such increase is so fixed shall
be proportionately adjusted to reflect such increase in the Rent.

          (6) Landlord shall have the option of installing sub-meters at
Tenant's expense to measure Tenant's consumption of electrical energy. If
Landlord exercises such option, Tenant shall pay to Landlord, as additional
rent, within ten (10) days of demand, from time to time, but no more frequently
than monthly, for its consumption of electrical energy at the then applicable
rate prescribed by the public utility company serving the Premises for
sub-metered electrical energy, plus Landlord's charge for overhead and
supervision in the amount of eight (8%) percent of the total electric bill. In
such event, the Rent shall be reduced by an amount equal to the then Electricity
Factor as of, commencement of the operation of such sub-meters. For the purpose
of this subparagraph (6) the rate to be paid by Tenant in the event of
sub-metering shall include any taxes or other charges in connection therewith.
If any tax shall be imposed upon Landlord's receipts from the sale or resale of
electrical energy to Tenant, the pro rata share allocable to the electrical
energy service received by Tenant shall be passed on to, included in the bill
of, and paid by Tenant if and to the extent permitted by law. Where more than
one meter measures the electricity supplied to Tenant, the electricity rendered
through each meter may be computed and billed separately in accordance with the
provisions hereinabove set forth. Tenant expressly acknowledges that, in
connection with the installation of the submeters, the electricity being
furnished to the Premises may be temporarily interrupted. Landlord shall use
reasonable efforts to minimize interference with the conduct of Tenant's
business in connection with such installation, but the foregoing shall not
require Landlord to utilize premium or overtime labor in connection therewith.

          (7) Landlord reserves the right to discontinue furnishing electricity
to Tenant in the Premises on not less than thirty (30) days' notice to Tenant.
If Landlord exercises such right to discontinue, or is compelled to discontinue
furnishing electricity to Tenant, this Lease shall continue in full force and
effect and shall be unaffected thereby, except only that from and after the
effective date of such discontinuance, Landlord shall not be obligated to
furnish electricity to Tenant and the Rent shall be reduced by an amount equal
to the then Electricity Factor. If Landlord so discontinues furnishing
electricity to Tenant, Tenant shall arrange to obtain electricity directly from
the public utility or other company servicing the Building. Such electricity may
be furnished to Tenant by means of the then existing electrical facilities
serving the Premises to the extent that the same are available, suitable and
safe for such purposes. All meters and all additional panel boards, feeders,
risers, wiring and other conductors and equipment which may be required to
obtain electricity, of substantially the same quantity, quality and

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<PAGE>

character, shall be installed by Landlord, at Tenant's sole cost and expense.
Landlord shall not voluntarily discontinue furnishing electricity to Tenant
until Tenant is able to receive electricity directly from the public utility or
other company servicing the Building.

          (8) Landlord shall not be liable to Tenant in any way for any
interruption, curtailment or failure, or defect in the supply or character of
electricity furnished to the Premises by reason of any requirement, act or
omission of Landlord or of any public utility or other company servicing the
Building with electricity or for any other reason except Landlord's gross
negligence or willful misconduct. If either the quantity or character of
electrical service is changed by the public utility or other company supplying
electrical service to the Building or is no longer available or suitable for
Tenant's requirements, no such change, unavailability or unsuitability shall
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of rent, or relieve Tenant fmm any of its
obligations under this Lease, or impose any liability upon Landlord, or its
agents, by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant's business, or otherwise.

          (9) In the event Tenant shall occupy the Premises prior to the
Commencement Date, Tenant shall pay to Landlord a sum equivalent to one-twelfth
(1/12th) of the electricity Factor (the "INTERIM ELECTRIC CHARGE") on the fast
day of its occupancy of the Premises and on the fast day of each calendar month
thereafter until the Commencement Date, as additional rent representing the cost
of electricity consumed within the Premises for such period. If the first day of
Tenant's occupancy occurs on a date other than the first day of a calendar
month, the Interim Electric Charge for such month shall be an amount equal to
such proportion of the Interim Electric Charge as the number of days from and
including the first day of such occupancy through the last day in such calendar
month bears to the total number of days in such calendar month.

      I.  Energy Conservation.

          (i) Tenant agrees to cooperate fully with Landlord to ensure the most
effective and energy-efficient operation of the Building. Accordingly, Tenant
agrees as follows:

          (a) Tenant shall not waste electricity, water, heat, air conditioning
and other utilities and services at the Building.

          (b) Tenant shall not obstruct, alter or in any way impair the
efficient operation of the Building's heat, air conditioning and ventilation
systems. To this end, Tenant shall (1) not place furniture, equipment or other
objects where they would interfere with air flow, (2) not tamper with or change
the setting of any thermostats or temperature control valves, (3) keep corridor
doors closed and not open any windows (except that if the air circulation shall
not be in operation, and if the Premises contain operable windows, such windows
may be opened with Landlord's consent), and (4) during hot weather months, lower
and partially close window blinds or drapes when the sun's rays fall directly on
windows of the Premises.

          (ii) From time to time, Landlord may institute for the Building
certain programs (including energy conservation programs) that Landlord believes
will be in the best interests of the Building and its tenants. Similar programs
may be established by a local utility company. Tenant shall promptly comply
with and carry out, in good faith, any and all obligations issued by Landlord or
the utility company, as the case may be, under such programs, as the same may
exist from time to time.

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<PAGE>

      J.  Interruption of Services. Landlord reserves the right to stop service
of the HVAC system and all other Building Systems during any period of a
violation or breach by Tenant of the provisions of this Lease and to stop the
service of the HVAC system or the elevator, electrical, plumbing or other
mechanical systems or facilities in the Building when necessary, by reason of
accident or emergency, or for repairs, additions, alterations, replacements,
decorations or improvements in the judgment of Landlord desirable or necessary
to be made, until said repairs, alterations, replacements or improvements shall
have been completed. Landlord shall have no responsibility or liability for
interruption, curtailment or failure to supply cooled or outside air, heat,
elevator, plumbing or electricity when prevented by exercising its right to stop
service or by strikes, labor troubles or accidents or by any cause whatsoever
reasonably beyond landlord's control, or by failure of independent contractors
to perform or by laws, orders, rules or regulations of any federal, state,
county or municipal authority, or failure of suitable fuel supply, or inability
by exercise of reasonable diligence to obtain suitable fuel or by reason of
governmental preemption in connection with a National Emergency or by reason of
the conditions of supply and demand which have been or are affected by war or
other emergency.

30. PARTNERSHIP TENANT.

          A. Partnership Tenants. If Tenant is a partnership (or is comprised of
two (2) or more persons, individually and as co-partners of a partnership) or if
Tenant's interest in this Lease shall be assigned to a partnership (or to two
(2) or more persons, individually and as copartners of A partnership) pursuant
to Article 12 (any such partnership and such persons are referred to in this
Article 30 as a "Partnership Tenant"), the following provisions of this Article
30 shall apply to such Partnership Tenant: (i) the liability of each of the
parties comprising a Partnership Tenant shall be joint and several, and (ii)
each of the parties comprising a Partnership Tenant hereby consents in advance
to, and agrees to be bound by, any written instrument which may hereafter, be
executed, changing, modifying or discharging this Lease, in whole or in part, or
surrendering all or any part of the Premises to Landlord, and by any notices,
demands, requests or other communications which may hereafter be given by a
Partnership Tenant or by any of the parties comprising a Partnership Tenant, and
(iii) any bills, statements, notices, demands, requests or other communications
given or rendered to a Partnership Tenant and to all such parties shall be
binding upon a Partnership Tenant and all such parties, and (iv) if a
Partnership Tenant shall admit new partners, all of such new partners shall, by
their admission to a Partnership Tenant, be deemed to have assumed performance
of all OF the terms, covenants and conditions of this Lease on Tenant's part to
be observed and performed, and (v) a Partnership Tenant shall give prompt notice
to Landlord of the admission of any such new partners, and upon demand of
Landlord, shall cause each such new partner to execute and deliver to Landlord
an agreement in form satisfactory to Landlord, wherein each such new partner
shall assume performance of all the terms, covenants and conditions of this
Lease on Tenant's part to be observed and performed (but neither Landlord's
failure to request any such agreement nor the failure of any such new partner to
execute or deliver any such agreement to Landlord' shall vitiate the provisions
of subdivision (iv) of this Subsection A of this Article 30).

          B. Limited Liability Entities. If Tenant is a limited or general
partnership (or is comprised of two (2) or more persons, individually or as
co-partners), the change or conversion of Tenant to (a) a limited liability
partnership, (b) a limited liability company, or (c) any other entity which
possesses the characteristics of limited liability (any such limited liability
partnership, limited liability company or entity is referred to as a "Limited
Liability Successor Entity"), shall be prohibited unless the prior written
consent of Landlord is obtained, which consent may be withheld in Landlord's
sole discretion. Notwithstanding the foregoing, Landlord agrees not to
unreasonably withhold of delay such consent provided that: (i) The Limited
Liability Successor Entity succeeds to all or substantially all of Tenant's
business and assets; (ii) The Limited Liability Successor Entity shall have a
net worth, determined in accordance with generally accepted accounting
principles, consistently applied, of not less than the

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<PAGE>

greater of the net worth of Tenant on (1) the date of execution of this Lease,
and (2) the day immediately preceding the proposed effective date of such
conversion; (iii) Tenant is not in default of any of the terms, covenants or
conditions of this Lease on the proposed effective date of such conversion; (iv)
Tenant shall cause each partner of tenant to execute and deliver to Landlord an
agreement, in form and substance satisfactory to Landlord, wherein each such
partner agrees to remain personally liable for all of the terms, covenants and
conditions of this Lease that are to be observed and performed by the Limited
Liability Successor Entity; and (v) Tenant shall reimburse Landlord on demand
for any and all reasonable costs and expenses that may be incurred by landlord
in connection with said conversion of Tenant to a Limited Liability Successor
Entity, including any attorneys' fees and disbursements.

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

32.   SECURITY DEPOSIT.

          A. Deposit of Security. Landlord and Tenant acknowledge that Tenant
has deposited with Landlord the Security Deposit as security for the faithful
performance and observance by Tenant of the terms, provisions and conditions of
the Lease, including but not limited to the payment of Minimum Rent and
additional rent. The parties agree that the Security Deposit shall remain on
deposit with the Landlord and that Landlord may use, apply or retain the whole
or any part of the Security Deposit to the extent required for the payment of
any Minimum Rent and additional rent or any other sum as to which Tenant is in
default or for any sum which Landlord may expend or may be required to expend by
reason of Tenant's default in respect of any of the terms, covenants and
conditions of the Lease, including but not limited to, any damages or deficiency
in the reletting of the Premises, whether such damages or deficiency accrued
before or after summary proceedings or other re-entry by Landlord. If any
portion of the Security Deposit is applied by Landlord to any default by Tenant
under this Lease, Tenant shall restore the sum so applied within five (5) days
after written notice from Landlord demanding such restoration and the amount to
be restored shall be deemed additional rent. In the event that the Security
Deposit is placed in an interest bearing account, Landlord shall be entitled to
and shall be paid from the interest accrued and credited on the Security
Deposit one (1%) percent (of the Security Deposit) per annum for administration
of the security account. Notwithstanding the foregoing, Landlord shall have no
obligation to deposit the Security Deposit into an interest-bearing account.
Landlord shall have no liability or obligation to Tenant for any loss suffered
by Tenant by reason of the placement by Landlord of the Security Deposit into
any commercial or savings bank account.

          B. Letter of Credit. In lieu of the cash deposit required pursuant to
Subsection A of this Article 32, Tenant may deliver to Landlord a clean,
irrevocable, non-documentary and unconditional letter of credit (the "LETTER OF
CREDIT") issued by and drawn upon any commercial bank (the "Issuing Bank") with
offices for banking purposes in the City of New York and having a net worth of
not less than One Hundred Million and 00/100 ($100,000,000.00) Dollars, which
Letter of Credit shall (a) have a term

                                       44
<PAGE>

of not less than one year, (b) be substantially in the form of Exhibit 3
attached hereto and otherwise in form and content satisfactory to Landlord, (c)
be for the account of Landlord, (d) be in the amount of the Security Deposit,
(e) be fully transferable by Landlord without any fees or charges therefor; (f)
have an expiration date that is not earlier than the date which is thirty (30)
days after the Expiration Date, and (g) provide that it shall be deemed
automatically renewed, without amendment, for consecutive periods of one (1)
year each thereafter during the term of this Lease, unless the Issuing Bank
sends notice (the "Non-Renewal Notice") to Landlord by certified mail, return
receipt requested, not less than thirty (30) days next preceding the then
expiration date of the Letter of Credit that it elects not to have such Utter of
Credit renewed. The Letter of Credit shall provide that Landlord shall have the
right, exercisable within twenty (20) days of its receipt of the Non-Renewal
Notice, by sight draft on the Issuing Bank, to receive the monies represented by
the existing Letter of Credit and to hold such proceeds pursuant to the terms of
this Article 32 as a cash security pending the replacement of such Letter of
Credit.

          C. Application of Security Deposit. In the event that Tenant defaults
beyond the giving of notice and the expiration of applicable grace periods in
respect of any of the terms, provisions and conditions of this Lease, including,
but not limited to, the payment of Minimum Rent and additional rent, Landlord
may apply or retain the, whole or any part of any cash security held by Landlord
or may notify the Issuing Bank and thereupon receive all the monies represented
by the Letter of Credit and use, apply or retain the whole or any part of such
proceeds, as the case may be, to the extent required for the payment of any Rent
and additional rent or any other sum as to which Tenant is in default or for any
sum which Landlord may expend or may be required to expend by reason of Tenant's
default in respect of my of the terms, covenants and conditions of this Lease,
including but not limited to, any damages or deficiency in the reletting of the
Premises, whether such damages or deficiency accrue or accrues before or after
summary proceedings or other reentry by Landlord. If Landlord applies or retains
any part of any cash security or proceeds of the Letter of Credit, as the case
may be, Tenant, within five (5) days after notice from Landlord and at
Landlord's option, shall deposit with Landlord the amount so applied or retained
or increase the amount of the Letter of Credit or provide an additional or
replacement Letter of Credit, so that Landlord shall have the full Security
Deposit on hand at all times during the Term. The failure by Tenant to deposit
such additional amount or provide an additional or replacement Letter of Credit
within the foregoing time period shall be deemed a material default pursuant to
Article 17 of this Lease. If Tenant shall fully and faithfully comply with all
of the terms, provisions, covenants and conditions of this Lease, any cash
security or the Letter of Credit, as the case may be, shall be promptly returned
to Tenant after the Expiration Date and after delivery of the entire possession
of the Premises to Landlord. In the event of a sale of the Real Property or the
Building or leasing of the Building, Landlord shall transfer any cash security
or so much thereof as remains following a default by Tenant to the vendee or
lessee and with respect to the Letter of Credit, within thirty (30) days of
notice of such sale or leasing, Tenant, at Tenant's sole cost and expense, shall
arrange for the transfer of the Letter of Credit to the new landlord, as
designated by Landlord in the foregoing notice or have the Letter of Credit
reissued in the name of the new landlord and Landlord shall thereupon be
released by Tenant from all liability for the return of such security. Tenant
agrees to look solely to the new landlord for the return of such cash security
or Letter of Credit and it is agreed that the provisions hereof shall apply to
every transfer or assignment made of the Security Deposit to a new landlord.
Tenant further covenants that it will not assign or encumber or attempt to
assign or encumber any monies or Letter of Credit deposited herein as security
and that neither Landlord nor its successors or assigns shall be bound by any
such assignment, encumbrance, attempted assignment or attempted encumbrance.

33.   CAPTIONS. The Captions are inserted only as a matter of convenience and
for reference and in no way define, limit or describe the scope of this Lease
nor the intent of any provision thereof.

34.   ADDITIONAL DEFINITIONS.

                                       45
<PAGE>

          A. The term "office" or "offices", wherever used in this Lease, shall
not be construed to mean premises used as a store or stores, for the sale or
display, at any time, of goods, wares or merchandise, of any kind, or as a
restaurant, shop, booth, bootblack or other stand, barber shop, or for other
similar purposes or for manufacturing.

          B. The words "reenter" and "reentry" as used in this Lease are not
restricted to their technical legal meaning.

          C. The term "rent" or "Rent" as used in this Lease shall mean and be
deemed to include Minimum Rent, any increases in Minimum Rent, all additional
rent and any other sums payable hereunder.

          D. The term "BUSINESS DAYS" as used in this Lease shall exclude
Saturdays, Sundays and all days observed by the State or Federal Government as
legal holidays and union holidays for those unions that materially affect the
delivery of services in the Building.

          E. The words "INCLUDE", "INCLUDING" AND "SUCH AS" shall each be
construed as if followed by the phrase "without being limited to" The words
"HEREIN", "HEREOF", "HEREBY", "HEREUNDER" and words of similar import shall be
construed to refer to this Lease as a whole and not to any particular Article or
subdivision hereof unless expressly so stated.

          F. The terms "SUBSTANTIAL COMPLETION" OR "SUBSTANTIALLY COMPLETED" or
words of similar import shall mean that any construction work (including
Alterations and Landlord's Work) has been substantially completed, it being
agreed that any such work all be deemed substantially complete notwithstanding
the fact that minor or insubstantial details of construction or demolition
and/or mechanical adjustment and/or decorative items remain to be performed,
provided that any such unperformed work shall not materially interfere with
Tenant's use and occupancy of the Premises for the Permitted Uses.

35.   PARTIES BOUND. The covenants, conditions and agreements contained in this
Lease shall bind and inure to the benefit of Landlord and Tenant and their
respective heirs, distributees, executors, administrators, successors, and,
except as otherwise provided in this Lease, their assigns.

36.   BROKER.

          A. Tenant represents and warrants that Tenant has dealt directly with
(and only with), the Landlord's Broker and the Tenant's Broker as broker in
connection with this Lease, and that insofar as Tenant knows no other broker
negotiated this Lease or is entitled to any commission in connection therewith,
and the execution and delivery of this Lease by Landlord shall be conclusive
evidence that Landlord has relied upon the foregoing representation and
warranty. Tenant shall indemnify and hold Landlord harmless from and against any
and all claims for commission, fee or other compensation by any other person who
shall claim to have dealt with Tenant in connection with this Lease and for any
and all costs incurred by Landlord in connection with such claims, including,
without limitation, reasonable attorneys' fees and disbursements.

          B. Tenant agrees that in the event it shall, during the Term, seek to
hire from Landlord any additional premises in the Building, it shall seek to do
so directly from the Landlord without the intervention of any broker or brokers
and if Landlord and Tenant shall enter into any lease with respect to any such
additional premises, Tenant shall be required to indemnify and hold harmless
Landlord from and against any and all claims or demand for brokerage commissions
in connection therewith (excluding any

                                       46

<PAGE>

commissions payable by Landlord as a result of any exclusive leasing agreements
entered into by Landlord which may give rise to the obligation to pay such
commissions). Tenant shall have the right, notwithstanding the foregoing, to
engage the services of a broker in connection with any leasing referred to in
this Subsection B, provided, however, that in such event Tenant shall be solely
responsible for the payment of any and all brokerage commissions in connection
therewith and shall pay the same.

37.   INDEMNITY. Tenant shall not do or permit any act or thing to be done upon
the Premises which may subject Landlord to any liability or responsibility for
injury, damages to persons or property or to any liability by reason of any
violation of law or of any legal requirement of public authority, but shall
exercise such control over the Premises as to fully protect Landlord against any
such liability. Tenant agrees to indemnify and save harmless Landlord from and
against (a) all claims of, whatever nature against Landlord arising from any
act, omission or negligence of Tenant, its contractors, licensees, agents,
servants, employees, invitees or visitors, including any claims arising from
any act, omission or negligence of Landlord or Landlord and Tenant, (b) all
claims against Landlord arising from any accident, injury or damage whatsoever
caused to any person or to the property of any person and occurring in or about
the Premises from the date access to the Premises is given to Tenant (including
during the, performance of Landlord's Work, if any), (c) all claims against
Landlord arising from any accident, injury or damage to any person, entity or
property, occurring outside of the Premises but anywhere within or about the
Real Property, where such accident, injury or damage results or is claimed to
have resulted from an act or omission of Tenant or Tenant's agents, employees,
invitees or visitors, including any claims arising from any act, omission or
negligence of Landlord or Landlord and Tenant, (d) any breach, violation or
nonperformance of any covenant, condition or agreement in this Lease set forth
and contained on the part of Tenant to be fulfilled, kept, observed and
performed, and (e) any claim, loss or liability arising or claimed to arise
from Tenant, or any of Tenant's contractors, licensees, agents, servants,
employees, invitees or visitors causing or permitting any Hazardous Substances
(hereinafter defined) to be brought upon, kept or used in or about the Premises
or the Real Property or any seepage, escape or release of such Hazardous
Substances. This indemnity and hold harmless agreement shall include indemnity
from and against any and all liability, fines, suits, demands, costs and
expenses of any kind or nature incurred in or in connection with any such claim
or proceeding brought thereon, and the defense thereof, including all reasonable
legal fees and expenses incurred in enforcing the provisions of this indemnity.
As used herein, "HAZARDOUS SUBSTANCES" shall mean, collectively, (a) asbestos
and polychlorinated biphenyls and (b) hazardous or toxic materials, wastes and
substances which are defined, determined and identified as such pursuant to any
law.

38.   ADJACENT EXCAVATION; SHORING. If an excavation shall be made upon
land adjacent to the Premises, or shall be authorized to be made, Tenant shall
afford to the person causing or authorized to cause such excavation, license to
enter upon the Premises for the purpose of doing such work as said person shall
deem necessary to preserve the wall or the Building from injury or damage and to
support the same by proper foundations without any claim for damages or
indemnity against Landlord, or diminution or abatement of Rent.

39.   MISCELLANEOUS.

          A. No Offer. This Lease is offered for signature by Tenant and it is
understood that this Lease shall not be binding upon Landlord unless and until
Landlord shall have executed and delivered a fully executed copy of this Lease
to Tenant.

          B. Signatories. If more than one person executes this Lease as Tenant,
each of them understands and hereby agrees that the obligations of each of them
under this Lease are and shall be joint and several, that the term "Tenant" as
used in this Lease shall mean and include each of them jointly and

                                       47
<PAGE>

severally and that the act of or notice from, or notice or refund to, or the
signature of, any one or more of them, with respect to the tenancy and/or this
Lease, including, but not limited to, any renewal, extension, expiration,
termination or modification of this Lease, shall be binding upon each and all of
the persons executing this Lease as Tenant with the same force and effect as if
each and all of them had so acted or so given or received such notice or refund
or so signed.

          C. Certificates. From time to time, within seven (7) days next
following request by Landlord or any Mortgagee, Tenant shall deliver to Landlord
or such Mortgagee, as the case may be, a written statement executed and
acknowledged by Tenant, in form satisfactory to Landlord or such Mortgagee, (i)
stating that this Lease is then in full force and effect and has not been
modified (or if modified, setting forth all modifications), (ii) setting forth
the date to which the Minimum Rent, additional rent and other charges hereunder
have been paid, together with the amount of fixed base monthly Minimum Rent then
payable, (iii) stating whether or not, to the best knowledge of Tenant, Landlord
is in default under this Lease, and, if Landlord is in default, setting forth
the specific nature of all such defaults, (iv) stating the amount of the
security deposit under this Lease, (v) stating whether there are any subleases
affecting the Premises, (vi) stating the address of Tenant to which all
notices and communications under the Lease shall be sent, the Commencement Date
and the Expiration Date, and (vii) as to any other matters requested by Landlord
or such Mortgagee. Tenant acknowledges that any statement delivered pursuant to
this Subsection may be relied upon by any purchaser or owner of the Real
Property or the Building, or Landlord's interest in the Real Property or the
Building or any Superior Lease, or by any Mortgagee, or by any assignee of any
Mortgagee, or by any Lessor.

          D. Directory Listings. Landlord agrees to provide Tenant, at
Landlord's sole cost and expense, with a single listing of Tenant's name on the
directory in the lobby of the Building. Upon written request by Tenant, Landlord
agrees to provide Tenant with a reasonable number of additional listings on such
directory, at Tenant's sole cost and expense, provided that in all events,
Tenant shall be limited to a number of listings determined by multiplying
Tenant's Proportionate Share by the total number of spaces for listings on such
directory.

          E. Authority. If Tenant is a corporation, partnership, limited
liability company or other business entity, each individual executing this Lease
on behalf of Tenant hereby represents and warrants that Tenant is a duly formed
and validly existing entity qualified to do business in the State of New York
and that Tenant has full right and authority to execute and deliver this Lease
and that each person signing on behalf of Tenant is authorized to do so.

          F. Signage.

          (i) Tenant shall not exhibit, inscribe, paint or affix any sign,
advertisement, notice or other lettering on any portion of the Building or the
outside of the Premises without the prior written consent of Landlord in each
instance. A plan of all signage or other lettering proposed to be exhibited,
inscribed, painted or affixed shall be prepared by Tenant in conformity with
building standard signage requirements and submitted to Landlord for Landlord's
consent. If the proposed signage is acceptable to Landlord, Landlord shall
approve such signage or other lettering by written notice to Tenant. All signage
or other lettering which has been approved by Landlord shall thereafter be
installed by Landlord at Tenant's  sole cost and expense. Payment of all
charges therefor shall be deemed additional rent hereunder and shall be payable
within ten (10) days of rendition of a bill therefor. In the event Landlord
requires payment in advance for the installation of any such signage or other
lettering, no installation shall be commenced by Landlord until Landlord has
received payment in full.

                                       48
<PAGE>

          (ii) Upon installation of any such signage or other lettering, such
signage or lettering shall not be removed, changed or otherwise modified in any
way without Landlord's prior written approval. The removal, change or
modification of any signage or other lettering theretofore installed shall be
performed solely by Landlord at  Tenant's sole cost and expense. Tenant shall
not exhibit, inscribe, paint or affix on any part of the Premises or the
Building visible to the general public any signage or lettering including the
words "temporary" or "personnel".

          (iii) Any signage, advertisement, notice or other lettering which
shall be exhibited, inscribed, painted or affixed by or on behalf of Tenant in
violation of the provisions of this subsection may be removed by Landlord and
the cost of any such removal shall be paid by Tenant as additional rent within
ten (10) days of rendition of a bill therefor.

          (iv) Tenant shall not permit any machinery, equipment, sign, banner or
any other thing to protrude from the Premises to the exterior of the Building
beyond any plane of the exterior windows of the Premises or beyond the Premises
within the interior of the Building.

          G. Consents and Approvals. Wherever in this Lease Landlord's consent
or approval is required, if Landlord shall delay or refuse such consent or
approval, Tenant in no event shall be entitled to make, nor shall Tenant make,
any claim, and Tenant hereby waives any claim for money damages (nor shall
Tenant claim any money damages by way of set-off, counterclaim or defense) based
upon any claim or assertion by Tenant that Landlord unreasonably withheld or
unreasonably delayed its consent or approval. Tenant's sole remedy shall be an
action or proceeding to enforce any such provision, for specific performance,
injunction or declaratory judgment.

          H. Rent Control. In the event the Minimum Rent or additional rent or
any part thereof provided to be paid by Tenant under the provisions of this
Lease during the demised term shall become uncollectible or shall be reduced or
required to be reduced or refunded by virtue of any Legal Requirements, Tenant
shall enter into such agreements) and take such other steps as Landlord may
reasonably request and as may be legally permissible to permit Landlord to
collect the maximum rents which from time to time during the continuance of such
legal rent restriction (but not in excess of the amounts reserved under this
Lease). Upon the termination of such legal rent restriction (a) the Minimum Rent
and/or additional rent shall become and thereafter be payable in accordance with
the amounts reserved herein for the periods following such termination, and (b)
Tenant shall pay to Landlord promptly upon being billed, to the maximum extent
legally permissible, and amount equal to (i) the Minimum Rent and/or additional
rent which would have been paid pursuant to this Lease but for such legal rent
restriction, less (ii) the amounts paid by Tenant during the period such legal
rent restriction was in effect.

          I. Right to Relocate.

          (i) Notwithstanding anything contained in this Lease to the contrary,
Landlord shall have the right to substitute in lieu of the Premises alternative
space in the Building designated by Landlord (the "RELOCATION SPACE") effective
as of the date (the "RELOCATION EFFECTIVE DATE") set forth in a notice given to
Tenant (the "RELOCATION NOTICE"). The Relocation Space shall be reasonably
comparable to the Premises with respect to internal configuration, quality of
finish and rentable square foot area (i.e., plus or minus ten (10%) percent).
The Relocation Effective Date shall not be less than thirty (30) days following
the date upon which the Relocation Notice is given to Tenant. In the event that
Landlord exercises its rights hereunder, (a) Tenant shall deliver to Landlord
possession of the Premises on or before the Relocation Effective Date vacant and
broom clean, free of all occupancies and encumbrances and otherwise in
accordance with the terns, covenants and conditions of the Lease as if the
Relocation Effective Date were the Expiration Date, (b) effective as of the
Relocation Effective Date, the

                                       49
<PAGE>

term and estate hereby granted with respect to the Premises originally demised
hereunder shall terminate, the Relocation Space shall be deemed to be the
Premises and the Minimum Rent and additional rent payable under this Lease shall
be adjusted, if necessary, so as to reflect any difference between the deemed
rentable square foot area of the original Premises and said Relocation Space.

          (ii) Provided that Tenant is not in default under this Lease, Landlord
shall at Landlord's cost and expense, remove and reinstall Tenants' personal
property, trade fixtures and equipment in the Relocation Space ("LANDLORD'S
RELOCATION WORK"). Landlord shall complete Landlord's Relocation Work on or
before the Relocation Effective Date provided that Tenant cooperates with
Landlord and gives Landlord full access to the Premises to facilitate the
performance thereof.

          (iii) Following any relocation undertaken pursuant to this subsection,
Tenant shall promptly execute and deliver an agreement confirming such
relocation and fixing any corresponding adjustments in Minimum Rent and
additional rent payable under this Lease, but any failure to execute such an
agreement by Tenant shall not affect such relocation and adjustments as
determined by Landlord.

          J. Access to Premises. Subject to its reasonable security regulations,
Landlord agrees that the Building shall be accessible to Tenant and Tenant shall
have the use of at least one (1) elevator subject to call, twenty four (24)
hours a day,  seven, (7) days a week.

          K. Confidentiality. Tenant acknowledges that the terms and conditions
of this Lease are to remain confidential for Landlord's benefit, and may not be
disclosed by Tenant to anyone, by any manner or means, directly or indirectly,
without Landlord's prior written consent. In addition, the parties recognize and
agree that the damage to Landlord resulting from any breach by Tenant of the
foregoing confidentiality covenant will be substantial and will be impossible to
accurately measure. Tenant therefore agrees that if Tenant breaches such
confidentiality covenant, Tenant shall pay to Landlord as liquidated damages the
sum of $25,000.00. The consent by Landlord to any disclosures shall not be
deemed to be a waiver on the part of Landlord of any prohibition against any
future disclosure.

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

                                    104 West 40th Street Partners, LLC, Landlord

                                    By: /s/ Aby Rosen
                                        -----------------------------
                                        Name: Aby Rosen
                                        Title: Member

                                    Bridgeline Software, Inc. Tenant

                                    By: /s/ Gary M. Cebula
                                        -----------------------------
                                        Name: Gary M. Cebula
                                        Title: CFO

                                    52-2263942
                                    ------------------------
                                    Tenant's Tax ID Number

                                       50
<PAGE>

                                    EXHIBIT 1

                             FLOOR PLAN OF PREMISES

THIS IS A SCHEMATIC PLAN AND IS INTENDED ONLY TO SHOW THE PROPOSED GENERAL
LAYOUT OF THE PREMISES. ALL MEASURES, DISTANCES AND DIMENSIONS ARE APPROXIMATE
AND NOT TO SCALE. THE DEPICTIONS HEREON DO NOT CONSTITUTE A WARRANTY OR
REPRESENTATION OF ANY KIND.

                          [SCHEMATIC PLAN APPEARS HERE]

<PAGE>

                                    EXHIBIT 2

                             CLEANING SPECIFICATIONS

      A. The following general cleaning will be performed nightly, Monday
through Friday, excluding union and legal holidays:

          (1) All carpeting will be vacuumed once per week and carpets swept, as
needed, the remaining four (4) nights.

          (2) All composition floor tiling will be swept and dust mopped with a
chemically treated mop for dust control one (1) time per week.

          (3) ALL desks will be dusted. Tenant personalty and work
product will not be moved:

          (4) Wastepaper baskets will be emptied and trash removed to a
designated location in the Premises. Plastic liners will be installed weekly
into all trash receptacles at Tenant's expense.

          (5) Wipe clean all water fountains and coolers; empty waste water.

      B. The following lavatory service will be performed Monday through
Friday, excluding union and legal holidays:

          (1) Porcelain fixtures will be scoured clean.

          (2) Both sides of toilet seats will be washed with a mild germicidal
              solution.

          (3) Bright work will be dry polished.

          (4) Trash receptacles will be emptied and cleaned, as needed.

          (5) Mirrors will be wiped clean.

          (6) Partitions will be wiped down, as necessary.

          (7) Shelves and counters will be wiped clean.

          (8) Floors will be mopped with a mild disinfectant.

          (9) Lavatory supplies will be furnished and installed at the
              Tenant's expense:

      C. The following shall be performed weekly:

          (1) All chairs, tables, cabinets and attachments will be dusted
              weekly. Tenant personalty and work product will not be moved.

          (2) Window sills will be dusted weekly. Tenant personalty and
              work product will not be moved.

<PAGE>

          (3) Moldings and ledges within hands' reach will be dusted weekly.

      D. The following shall be performed quarterly:

          (1) Dust in place all picture, frame, charts, graphs and similar wall
              hangings not reached in nightly cleaning.

          (2) Dust all vertical surfaces and walls, partition doors, door bucks
              and other surfaces not reached in nightly cleaning. Tenant
              personalty and work product will not be moved.

      E. Window Cleaning:

          (1) All windows are to be cleaned inside and outside two (2) times per
              year.

<PAGE>

                                    EXHIBIT 3

                            FORM OF LETTER OF CREDIT

ISSUE DATE:________________
L/C NO.:___________________

APPLICANT:
************DIRECT**************                           [Tenant]
                                                           AMOUNT: USD $________

[LANDLORD]
c/o RFR Realty, LLC
400 PARK AVENUE
NEW YORK, NEW YORK 10022

GENTLEMEN:

We hereby establish our irrevocable standby letter of credit no.________________
in your favor for an aggregate amount not to exceed the amount indicated above,
expiring at our counters in New York with our close of business on ___________.

This letter of credit is available with the __________________ Bank, New York
against presentation of your draft at sight drawn on the ____________________
Bank, New York.

It is a condition of this irrevocable letter of credit that it shall be
automatically extended without amendment for additional one year periods from
the present or each future expiration date, unless at least 45 days prior to
such date we send you notice in writing by registered mail at the above address,
that we elect not to renew this letter of credit for such additional period.
However in no event shall this letter of credit be extended beyond the final
expiration date of _______________. Upon such notice to you, you may draw drafts
on us at sight for an amount not to exceed the balance remaining in this letter
of credit within the then applicable expiration date, accompanied by your dated
statement purportedly signed by one of your officials reading: "the amount of
this drawing USD _____________ under the Bank letter of credit number __________
represents funds due us as we have received notice from the _____________ - Bank
of its decision not to extend letter of credit number for an additional year,
and the obligation remains outstanding." We will not notify Applicant or any
other third party with respect to communications, or inquiries of Beneficiary,
including the presentation of the Letter of Credit for payment or any attempt to
draw against the Letter of Credit, until after the Letter of Credit has been
paid in accordance with the terms hereof.

This letter of credit is transferable in its entirety (but not in part) and
the ___________________ Bank only is authorized to act as the transferring bank.

We shall not recognize any transfer of this letter of credit until this original
letter of credit together with any amendments and a signed and completed
transfer form satisfactory to us is received by us.

Transfer charges are for the applicant's account. Forms are attached.. [Please
obtain forms from the Bank].

<PAGE>

The correctness of the signature and title of the person signing the transfer
forms must be verified by your bank.

In case of any transfer under this letter of credit, the draft and any required
statement must be executed by the transferee.

This letter of credit may not be transferred to any person with which U.S.
persons are prohibited from doing business under U.S. foreign assets control
regulations or other applicable U.S. laws and regulations.

All drafts must indicate: "Drawn under the Bank, New York letter of credit no.
dated ____________________."

The original letter of credit and all sight drafts must be presented for
drawing.

Except as otherwise expressly stated herein, this letter of credit is subject to
the Uniform Customs and Practice for documentary credits, 1993 Revision, ICC
Publication No. 500.

<PAGE>

                                   SCHEDULE A

                              RULES AND REGULATIONS

          (1) The rights of each tenant in the Building to the entrances,
corridors and elevators of the Building are limited to ingress to and egress
from such tenant's premises and no tenant shall use, or permit the use of the
entrances, corridors, or elevators for any other purpose. No tenant shall invite
to its premises, or permit the visit of persons in such numbers or under such
conditions as to interfere with the use and enjoyment of any of the plazas,
entrances, corridors, elevators and other facilities of the Building by other
tenants. No tenant shall encumber or obstruct, or permit the encumbrances or
obstruction of any of the sidewalks, plazas, entrances, corridors, elevators,
fire exits or stairways of the Building. Landlord reserves the right to control
and operate the public portions of the Building, the public facilities, as well
as facilities furnished for the common use of the tenants, in such manner as
Landlord deems best for the benefit of the tenants generally.

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

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

          (4) No window or other air-conditioning units shall be installed by
any tenant, and only such window coverings as are supplied or permitted by
Landlord shall be used in a tenant's premises.

          (5) There shall not be used in any space, nor in the public halls of
the Building, either by any tenant or by jobbers, or other in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and side guards.

<PAGE>

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

          (7) No noise, including the playing of any musical instruments, radio
or television, which, in the judgment of Landlord, might disturb other tenants
in the Building, shall be made or permitted by any tenant. No dangerous,
inflammable, combustible or explosive object, material or fluid shall be brought
into the Building by any tenant or with the permission of any tenant.

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

          (9) No additional locks or bolts of any kind shall be placed upon any
of the doors or windows in any tenant's premises and no lock on any door therein
shall be changed or altered in any respect. Duplicate keys for a tenant's
premises and toilet rooms shall be procured only from Landlord, which may make a
reasonable charge therefore: Upon the termination of a tenant's lease, all keys
of the tenant's premises and toilet rooms shall be delivered to Landlord.

          (10) Each tenant, shall, at its expense, provide artificial light in
the premises for Landlord's agents, contractors and employees while performing
janitorial or other cleaning services and making repairs or alterations in said
premises.

          (11) No tenant shall install or permit to be installed any vending
machines.

          (12) No animals or birds, bicycles, mopeds or vehicles of any kind
shall be kept in or about the Building or permitted therein.

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

          (14) All lighting fixtures hung in offices or spaces along the
perimeter of any tenant's Premises must be fluorescent, of a quality, type,
design and bulb color approved by Landlord unless the prior consent of Landlord
has been obtained for other limping.

          (15) The exterior windows and doors that reflect or admit light and
air into any premises or the halls, passageways or other public places in the
Building, shall not be covered or obstructed by any tenant, nor shall any
articles be placed on the windowsills.

          (16) Canvassing, soliciting and peddling in the Building is
prohibited' and each tenant shall cooperate to prevent same.

          (17) No tenant shall do any cooking, conduct any restaurant,
luncheonette or cafeteria for the sale or service of food or beverages to its
employees or to others, except as expressly approved in

<PAGE>

writing by Landlord In addition, no tenant shall cause or permit any odors of
cooking or other processes or any unusual or objectionable odors to emanate from
the premises. The foregoing shall not preclude tenant from having food or
beverages delivered to the premises, provided that no cooking or food
preparation shall be carried out at the premises.

          (18) No tenant shall generate, store, handle, discharge or otherwise
deal with any hazardous or toxic waste, substance or material or oil or
pesticide on or about the Real Property.

<PAGE>

                                   SCHEDULE B

                                 LANDLORD'S WORK

        Landlord shall, at its expense, perform the following work and
installations ("Landlord's Work") all of which shall be of material, design,
capacity, finish and color (if applicable) to the standard adopted by Landlord
for the Building (but in no event more than the type and quantity of work set
forth below).

          Landlord shall build out the Premises in Building standard manner,
          substantially accordance with Schedule B-1 annexed hereto and made a
          part hereof.

          Landlord shall provide wood trim around two (2) glass side lights
          as described on Schedule B-1.

          Landlord shall provide wood trim on the conference room wall as
          described on Schedule B-1.

          Landlord shall provide the Tenant Upgrades as set forth on Schedule
          B-2. Simultaneously with the execution and delivery of this Lease,
          Tenant shall pay to Landlord the sum of $7,194.00, representing
          payment for the Tenant Upgrades.

<PAGE>

                                  SCHEDULE B-1

                       SPECIFICATIONS FOR LANDLORD'S WORK

THIS IS A SCHEMATIC PLAN AND IS INTENDED ONLY TO SHOW THE PROPOSED GENERAL
LAYOUT OF THE PREMISES. ALL MEASURES, DISTANCES AND DIMENSIONS ARE APPROXIMATE
AND NOT TO SCALE. THE DEPICTIONS HEREON DO NOT CONSTITUTE A WARRANTY OR
REPRESENTATION OF ANY KIND.

                     [SCHEMATIC PREMISES PLAN APPEARS HERE]
<PAGE>

                                                               November 25, 2003

Re: Bridgeline
    104 West 10th Dtreet - 10th Floor
    New York, NY 10018
    Proposal No. 03-2575R4

                           PRELIMINARY SCOPE OF WORK
                           -------------------------
<TABLE>
<CAPTION>
<S>     <C>
Item #                        Description       Toaal Quantity          Unit

1       Hollow Metal & Hardware
        -----------------------
        Furnish & deliver Schalge D-Series Athens Lever handle          1       ea.
        D50PD\US26D, four (4) pairs Stanley #CB 1960xUSD32D hinge,
        Ives #438 stop, three (3) #20 Ives gray rubber - closer
        Furnish & deliver Schalge D-Series Athens Lever handle          1       ea.
        D50PD\US26D, four (4) pairs Stanley #CB 1960xUSD32D hinge,
        Ives #438 stop, three (3) #20 Ives gray rubber - closer
        Furnish & deliver Schalge D-Series Athens Lever handle          8       ea.
        D50PD\US26D, two (2) pairs Stanley #CB 1960xUSD32D hinge,
        Ives #438 stop, three (3) #20 Ives gray rubber
        Furnish & deliuver pocket door hardware                         1       ea.
        Furnish & deliver sliding door hardware                         1       ea.
        Furnish & deliver 3'0" x 8'0" KD hollow metal frame             7       ea.
        Furnish & deliver 4'0" x 8'0" KD hollow metal frame             2       ea.
        Furnish & deliver 6'0" x 8'0" KD welded hollow metal frame      1       ea.
2       DRYWALL, CARPENTRY & CEILINGS
        -----------------------------
        Furnish & install 1'6" x 8'0" trimmed sheetroxk opening to      2       ea.
        receive sidelight glass
        Furnish & install 24" x 24" regular lay-in exposed spline   2,656       sq. ft.
        suspended acousticval ceiling, Armstrong beveled edge
        #1912 "Ultima", color white, in 9/16" Superfine white
        exposed tee grid
        Furnish & install 4'0" x 8'0" x 3/4" plywood panel in           1       ea
        telephone room
        Furnish & install bulding standard window pockets              60       lin. ft.
        Furnish and install drywall partitions using two and          228       lin. ft.
        one-half (2 1/2") metal studs, twenty-four (24) inches
        on center, six (6") inches above hung ceiling and (1)
        layer of five-eight (5/8") gypsum board. Tape and spackle
        to receive building standard paint.

        Handle and install 2'6"/3'0"x8'0" hollow metal frames - KD     10       ea.
        Handle and install 3'0"x8'0" hollow metal frame - welded        1       ea.
        Patch floor below true to MEP work                              1       lot
        Provide hip pocket door condition                               1       ea.
        Close door opening                                              1       ea.
</TABLE>

                                  Page 6 of 8

Tri-Star Construction Corporation - 770 Lexington Avenue - New York, N.Y. 10021
<PAGE>

                                                               November 25, 2003

Re: Bridgeline
    104 West 10th Dtreet - 10th Floor
    New York, NY 10018
    Proposal No. 03-2575R4

                           PRELIMINARY SCOPE OF WORK
                           -------------------------
<TABLE>
<CAPTION>
<S>     <C>
Item #                        Description       Toaal Quantity          Unit

3       ARCHITECTURAL WOODWORK
        ----------------------
        Furnish and install 2'6"/3'0" x 8'0" solid core wood door      11       ea.
        with cherry finish
        Furnish & install plastic laminated upper and lower             6       lin. ft.
        cabinets at pantry
        Furnish and install 3'0" x 8'0" solid core wood door with       1       pair
        cherry finish [illegible]
        Furnish and install 3'0" x 8'0" solid core wood door with       1       ea.
        cherry finish - pocket door
        Furnish & install coat closet interior                          5       lin. ft.
        Furnish & install wood frame at Conference Room                 5       ea.
        Furnish & install wood frame at Private Offices                 2       ea.
4       Glass & Glazing
        ---------------
        Furnish & install 18" x 96" x 3/8" clear tempered glass         2       ea.
        set in top and bottom surface mounted channels
        Furnish & install 96" x 3/8" clear tempered glass set          14       lin. ft.
        in top and bottom surface mounted channels - Conference
        Room wall
5       PAINTING
        --------
        Paint wall with two (2) finish coats of Benjamin Moore      4,248       sq. ft.
        Latex paint in satin finish
        Paint hollow metal frame with two (2) coats of semi-gloss      11       ea.
        enamal
        Allow for painting of metal convectors with two (2) coats      66       lin. ft.
        of semi-gloss enamal
        Allow for painting core walls, interior and exterior1       2,520       sq. ft.
        columns, etc.
6       CARPET & RESILIENT FLOORING
        ---------------------------
        Furnish & install building standard carpet via direct glue    310       sq. yd.
        down -  based upon labor and material allowance of $25.00
        per square yard

        Furnish & install 1" vinly base                               760       lin. ft.
        Prepare flooe slab to receive new finish                    2,656       sq. ft.
7       HVAC
        ----
        Furnish & install constant air distribution system for      3,532       sq. ft.
        demised space including new diffusers and returns
</TABLE>

                                  Page 7 of 8

Tri-Star Construction Corporation - 770 Lexington Avenue - New York, N.Y. 10021
<PAGE>

                                                               November 25, 2003

Re: Bridgeline
    104 West 10th Dtreet - 10th Floor
    New York, NY 10018
    Proposal No. 03-2575R4

                           PRELIMINARY SCOPE OF WORK
                           -------------------------
<TABLE>
<CAPTION>
<S>     <C>
Item #                        Description       Toaal Quantity          Unit

9       PLUMBING
        --------
        Furnish & install pantry sink consisting of Elkay               1       ea.
        "Celebrity" #ADAI - 2521 stainless steel & Delta #462
        chrome pull out spray with lever handle
        Allow to furnish & install thirty (30) feet of roughing        30       lin. ft.
9       ELECTRIC
        --------
        Allow to furnish & install exit lights (Lightolier SE-EGLID     3       ea.
        Series Edge Lite)
        Allow to furnish & install single pole light switch            11       ea.
        (Leviton Decora Rocker White)
        Furnish & install 20-amp separate circuit duplex receptacle     3       ea.
        Furnish & install buliding standard 2'0" x 2'0"/4'0" light     47       ea.
        fixture (Mark Lighting Aurora Series) with side mounted
        perforated shields

        Furnish & install one (1) duplex receptacle (Leviton White)    13       ea.
        Furnish & install one (1) quad receptacle (Leviton White)       7       ea.
        Furnish & install one (1) telephone/data stub-up                9       ea.
        Furnish and install homeruns                                    9       ea.
10      FIRE ALARM - ALLOWANCE
        ----------------------
        Provide for fire alarm work                                 3,532       sq. ft.
11      STONEWORK
        ---------
        Furnish & install stone flooring in Reception Area based      192       sq. ft.
        upon $25.00 per square feet labor and material allowance
</TABLE>

                                  Page 8 of 8

Tri-Star Construction Corporation - 770 Lexington Avenue - New York, N.Y. 10021
<PAGE>

                                  SCHEDULE B-2

                                TENANT UPGRADES

                                                               November 25, 2003

    RFR
---------------
RFR Realth, LLC

                        Re: Bridgeline
                            104 West 10th Dtreet - 10th Floor
                            New York, NY 10018
                            Proposal No. 03-2575R4

                        Please initial below to accept tenant upgrade.

                        LIST OF TENANT UPGRADES
                        -----------------------

                        Tenant Upgrade #1                               Approved
                        -----------------                               --------

                        Furnish & install three (3) separate
                        circuit outlet for L.T. room

                                            Add the sum of $1,770.00      jmc

521 FIFTH AVENUE

NEW YORK, NY 10175      Tenant Upgrade #2
                        -----------------
PHONE (212) 883-0526
                        Furnish & install six (6) wall-mounted
FAX (212) 883-0529      electric whips for furniture system

                                            Add the sum of $5,424.00      jmc

<PAGE>

                                  SCHEDULE C- l
                    REQUIREMENTS FOR PLANS AND SPECIFICATIONS

     Tenant shall submit two (2) sepias and four (4) prints each (as well as the
mylars specified in subparagraph (xx) below, and one (1) additional sepia if
structural engineering is anticipated) of final and completed dimensioned and
detailed Plans and Specifications. Plans and Specifications shall also be
submitted in CADD format on disk. The Plans and Specifications must comply with
all Legal Requirements. The Plans and Specifications shall be stamped and sealed
by Tenant's architect and shall include the following:

          (i)       Reflected ceiling layouts and locations, including exit
lights and special area lighting specification for inclusion in engineer's
contract documents.

          (ii)      Equipment loads (Btu/hr., voltage, amperage, phase, waits,
etc.) and requirements for general work stations, as well as special areas, such
as telephone equipment rooms, copy rooms, edit rooms, etc.

          (iii)     Areas requiring 24-hour air conditioning or areas requiring
air conditioning after normal operating hours for the Building.

          (iv)      Power and telephone layouts and locations.

          (v)       Emergency power requirements, including specific electric
equipment and air conditioning equipment.

          (vi)      Temperature and humidity requirements for all special areas
other than office spaces.

          (vii)     Rooms to have individual zone control (VAV boxes, etc.).

          (viii)    Population (i.e., number of people per area).

          (ix)      Noise criteria and acoustical design criteria for special
areas.

          (x)       Requirements for redundant air conditioning systems
(communications rooms, computer rooms, etc.).

          (xi)      Compressed air requirements, including SCFM, pressure,
valving, etc. In addition, provide division of responsibility for specific
equipment (i.e., Landlord or contractor supplied).

          (xii)     Equipment requiring special exhaust.

          (viii)    General conditions and special supplemental conditions for
specifications.

          (xiv)     Fire protection for special areas (preaction sprinkler,
sprinkler, smoke and heat detectors, etc.).

          (xv)      Raised floor areas, including heights of raised floors, etc.
<PAGE>

          (xvi)     Plumbing requirements (types of fixtures, etc.), including
division of responsibility for specifying fixtures.

          (xvii)    Paging requirements.

          (xviii)   A full set of architectural drawings (including fire-rated
wall sections, elevations, etc.).

          (xix)     Security, data and audio/visual requirements (sizes).

          (xx)      Wash-off, reverse reading, half-tone mylars, without
dimensions, of the following drawings:

                   (a) Three (3) per floor - reflected ceiling plan)
                   (b) One (1) per floor - power and telephone plan.
                   (c) One (1) per floor - construction plan (to be used for
                       plumbing layout, if applicable).

          (xxi)     Location and details of common corridor, if applicable.

          (xxii)    Color and finish specifications.

          (xxiii)   Any and all information as may be reasonably necessary to
complete the Alterations in the Premises.
<PAGE>

                                  SCHEDULE C-2

                             CONSTRUCTION PROCEDURES

          (1)       The Plans and Specifications as required by Schedule C-1 are
to be delivered to Landlord's Vice President of Construction (the
"VP/Construction"), and shall be distributed as follows:

          One (1) set to be retained by the VP/Construction
          One (1) set to Landlord's Consulting Engineer
          One (1) set to Landlord's Consulting Architect
          One (1) set to the Building Manager

          (2)       The VP/Construction shall set the date for the meeting with
the engineer, architect and building manger to discuss the Plans and
Specifications, submit comments and incorporate any response.

          (3)       No construction shall be permitted unless the building
manager has a copy of the approved Plans and Specifications as well as
Landlord's approval letter.

          (4)       If any Alterations require Permits, all applications
therefor must be submitted to:

                    Vice President of Construction
                    RFR Realty LLC
                    757 Third Avenue - 7th floor
                    New York, New York 10017

          (5)       The President of RFR Realty, LLC is the only individual
authorized to sign any Permit applications.

          (6)       All submissions must use the Building Department Filings
Approval Form, the Plans and Specifications Approval Form and the Comments to
Plans and Specifications Form, copies of which are annexed hereto.
<PAGE>

                                 RFR Realty LLC
                                 400 Park Avenue
                            New York, New York 10022

                    BUILDING DEPARTMENT FILINGS APPROVAL FORM

            DATE:        _______________________________________________
            LESSEE:      _______________________________________________
            PREMISES:    _______________________________________________
            OWNER:       _______________________________________________
            LEASE DATE:  _______________________________________________
            FORMS:       _______________________________________________

                       (IDENTIFY FORMS WHICH WERE SIGNED)

     YOU HAVE REQUESTED THAT WE SIGN THE ABOVE-REFERENCED NEW YORK CITY BUILDING
DEPARTMENT FORMS (THE "FORMS") IN CONNECTION WITH YOUR PROPOSED ALTERATIONS IN
THE PREMISES IN ORDER TO EXPEDITE YOUR APPLICATION PROCESS WE HAVE AGREED TO
SIGN THE FORMS ON YOUR BEHALF THE SIGNING OF THE FORMS DOES NOT CONSTITUTE AN
APPROVAL OF YOUR PLANS AND SPECIFICATIONS, YOUR PROPOSED WORK OR ANY OTHER
ASPECTS OF THE PROPOSED ALTERATIONS, NOR SHALL IT BE DEEMED TO BE AN APPROVAL OR
AN ACKNOWLEDGEMENT OF THE LAYOUT, FUNCTIONALITY OR ANY OTHER ASPECT OF YOUR
PROPOSED WORK, IT BEING UNDERSTOOD AND AGREED THAT THE SIGNING OF THESE FORMS IS
SIMPLY AN ACCOMMODATION TO YOU AND IS MADE WITHOUT ANY RECOURSE OR LIABILITY ON
THE PART OF THE OWNER OR ITS MANAGER AND IS NOT INTENDED TO IMPLY ANY AGREEMENT,
UNDERSTANDING OR OBLIGATION ON THE PART OF OWNER OR MANAGER THE SIGNING OF THE
FORMS CANNOT BE RELIED UPON OR USED BY YOU OR OTHERS IN ANY DISPUTE WITH OWNER
OR MANAGER EXCEPT FOR THE SOLE PURPOSE OF PROVING THAT OWNER SIGNED THE FORMS .

                                       Very truly YOURS,

                                       RFR REALTY LLC

                                       By: ______________________________
                                           Name: Frank Spadatora
                                           Title: Vice President, Construction
AGREED:

LESSEE:
By:__________________________
   Authorized Representative/Title:_____________

<PAGE>

                                 RFR Realty LLC
                                 400 Park Avenue
                            New York, New York 10022

                     PLANS AND SPECIFICATIONS APPROVAL FORM

            DATE:        _______________________________________________
            LESSEE:      _______________________________________________
            PREMISES:    _______________________________________________
            OWNER:       _______________________________________________
            LEASE DATE:  _______________________________________________
            FORMS:       _______________________________________________
                       (Include Dates, Architect's Name And Sheet Numbers)

YOU HAVE REQUESTED THAT WE APPROVE THE PLANS AND SPECIFICATIONS REFERRED. TO
ABOVE (THE "PLANS") IN CONNECTION WITH YOUR PROPOSED ALTERATIONS TO THE
PREMISES. OUR APPROVAL OF THE PLANS, YOUR PROPOSED WORK OR ANY OTHER ASPECT OF
THE ALTERATIONS, IS SOLELY FOR THE BENEFIT OF THE OWNER AND SHALL NOT BE DEEMED
TO BE AN APPROVAL OR ACKNOWLEDGMENT WITH RESPECT TO THE LAYOUT OR THE
FUNCTIONALITY OF YOUR DESIGN OR ANY OTHER ASPECT OF YOUR WORK, IT BEING
UNDERSTOOD AND AGREED THAT THE APPROVAL OF THE PLANS IS WITHOUT ANY RECOURSE OR
LIABILITY ON THE PART OF THE OWNER OR ITS MANAGER AND IS NOT INTENDED TO IMPLY
ANY AGREEMENT, UNDERSTANDING OR OBLIGATION ON THE PART OF OWNER OR MANAGER. THE
APPROVAL CANNOT BE USED BY YOU OR OTHERS IN ANY DISPUTE WITH OWNER OR MANAGER
EXCEPT FOR THE SOLE PURPOSE OF PROVING THAT YOU HAVE COMPLIED WITH THE
PROVISIONS OF THE LEASE REQUIRING YOU TO OBTAIN OWNER'S APPROVAL OF THE PLANS
OUR COMMENTS TO THE PLANS, IF ANY, ARE SET FORTH ON THE ATTACHED COMMENT FORM.

                                       Very truly YOURS,

                                       RFR REALTY LLC

                                       By: ______________________________
                                           Name:
                                           Title:
AGREED:

LESSEE:
By:__________________________
   Authorized Representative/Title:_____________
<PAGE>

                                 RFR REALTY LLC
                                 400 Park Avenue
                            New York, New York 10022

                      COMMENTS TO PLANS AND SPECIFICATIONS

            DATE:        _______________________________________________
            LESSEE:      _______________________________________________
            PREMISES:    _______________________________________________
            OWNER:       _______________________________________________
            LEASE DATE:  _______________________________________________
            FORMS:       _______________________________________________
                       (Include Dates, Architect's Name And Sheet Numbers)

[_]    NOT APPROVED                    Comments need to be addressed in writing
                                       and shown on plans, which need to be
                                       re-submitted.

[_]    PRELIMINARY APPROVAL            You may  proceed with only the work that
                                       has been approved on the drawings that
                                       require no additional comments or
                                       changes.

[_]    FINAL APPROVAL

COMMENTS:

______________________________________________________

______________________________________________________

______________________________________________________

                                       Very truly YOURS,

                                       RFR REALTY LLC

                                       By: ______________________________
                                           Name: Frank Spadatora
                                           Title: Vice President, Construction
<PAGE>

                                   SCHEDULE D

                   Current Construction Insurance Requirements

LIABILITY LIMITATIONS

Comprehensive or Commercial General Liability Insurance written on an occurrence
basis, to afford protection of $3,000,000 combined single limit for personal
injury, bodily injury and/or death and Broad Form property damage arising out of
any one occurrence; and which insurance shall include coverage for
premises-operations (including explosion, collapse and underground coverage),
elevators, contractual liability, owner's and contractor's protective liability,
and completed operations liability.

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

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

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

CERTIFICATE HOLDER

[LANDLORD]
c/o RFR Realty LLC
400 PARK AVENUE
New York, New York 10022

ADDITIONAL INSUREDS

[LANDLORD]

RFR Realty LLC

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

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

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