Document:

Exhibit 10.2

 

 

AIR COMMERCIAL REAL ESTATE ASSOCIATION

GUARANTY OF LEASE

Paragraph 50

 

WHEREAS, CC & E,  LLC, hereinafter “Lessor”, and  ISI Detention Contracting Group, Inc., a
California corporation, hereinafter 
“Lessee”, are about to execute a document entitled “Lease” dated  July 21, 2008 
concerning the premises commonly known as 577 and 583 N. Batavia Street,
Orange, CA 92868 wherein Lessor will lease the premises to Lessee, and

 

WHEREAS, Argyle Security, Inc. hereinafter “Guarantors” have a financial
interest in Lessee, and

 

WHEREAS,
Lessor would not execute the Lease if Guarantors did not execute and deliver to
Lessor this Guaranty of Lease.

 

NOW
THEREFORE, in consideration of the execution of said Lease by Lessor and as a
material inducement to Lessor to
execute said Lease, Guarantors hereby jointly, severally, unconditionally and irrevocably
guarantee the prompt payment by Lessee of all rents and all other sums payable
by Lessee under said Lease and the faithful and prompt performance by  Lessee
of each and every one of the terms, conditions and covenants of said Lease to
be kept and performed by Lessee.

 

It
is specifically agreed by Lessor and Guarantors that: (i) the terms of the
foregoing Lease may be modified by agreement between Lessor and Lessee, or by a
course of conduct, and (ii) said Lease may be assigned by Lessor or any
assignee of Lessor without consent or notice to Guarantors and that this
Guaranty shall guarantee the performance of said Lease as so modified.

 

This Guaranty shall not be released, modified or affected by the
failure or delay on the part of Lessor to enforce any of the rights or remedies
of the Lessor under said Lease.

 

No
notice of default by Lessee under the Lease need be given by Lessor to
Guarantors, it being specifically agreed that the guarantee of the undersigned is
a continuing guarantee under which Lessor may proceed immediately against
Lessee and/or against Guarantors following any breach or default by Lessee or
for the enforcement of any rights which Lessor may have as against Lessee under
the terms of the Lease or at law or in equity.

 

Lessor
shall have the right to proceed against Guarantors following any breach or
default by Lessee under the Lease without first proceeding against Lessee and
without previous notice to or demand upon either Lessee or Guarantors.

 

Guarantors
hereby waive (a) notice of acceptance of this Guaranty. (b) demand of
payment, presentation and protest, (c) all right to assert or plead any
statute of limitations relating to this Guaranty or the Lease, (d) any
right to require the Lessor to proceed against the Lessee or any other
Guarantor or any other person or entity liable to Lessor, (e) any right to
require Lessor to apply to any default any security deposit or other security it
may hold under the Lease, (f) any right to require Lessor to proceed under
any other remedy Lessor may have before proceeding against Guarantors,
(g) any right of subrogation that Guarantors may have against Lessee.

 

Guarantors
do hereby subordinate all existing or future indebtedness of Lessee to
Guarantors to the obligations owed to Lessor under the Lease and this Guaranty.

 

If
a Guarantor is married, such Guarantor expressly agrees that recourse may be
had against his or her separate property for all of the obligations hereunder.

 

The
obligations of Lessee under the Lease to execute and deliver estoppel
statements and financial statements, as therein provided, shall be deemed to
also require the  Guarantors to do and provide the
same to Lessor. The failure of the Guarantors to provide the same to Lessor
shall constitute a default under the Lease.

 

The
term “Lessor” refers to and means the Lessor named in  the Lease and also Lessor’s successors and
assigns. So long as Lessor’s Interest in the Lease, the leased premises or the
rents, issues and profits therefrom, are subject to any mortgage or deed of
trust or assignment for security, no acquisition by Guarantors of the Lessor’s
interest shall affect the continuing obligation of Guarantors under this
Guaranty which shall nevertheless continue in full force and effect for the benefit of the mortgagee,
beneficiary, trustee or assignee under such mortgage, deed of trust or
assignment and their successors and assigns.

 

The
term “Lessee” refers to and means the Lessee named in the Lease and also
Lessee’s successors and assigns.  Any
recovery by Lessor from any other guarantor or insurer shall first be credited
to the portion of Lessee’s indebtedness to Lessor which exceeds the maximum
liability of Guarantors under this Guaranty.

 

Any
recovery by Lessor from any other guarantor or insurer shall first be credited
to the portion of Lessee’s indebtedness to Lessor which exceeds the maximum liability of Guarantors under this Guaranty.

 

No
provision of this Guaranty or right of the Lessor can be waived, nor can the
Guarantors be released from
their obligations except in writing signed by the Lessor.

 

Any
litigation concerning this Guaranty shall be initiated in a state court of
competent jurisdiction in the county in which the leased premises are located
and the Guarantors consent to the jurisdiction of such court. This Guaranty
shall be governed by the laws of the State in which the leased premises are
located and for the purposes of any rules regarding conflicts of law the
parties shall be treated as if they were all residents or domiciles of such
State.

 

                In the event any action be
brought by said Lessor against Guarantors  hereunder to enforce the
obligation of Guarantors hereunder, the
unsuccessful party in such action shall pay to the prevailing party therein a reasonable attorney’s fee. The
attorney’s fee award shall not
be computed in accordance with any court fee schedule, but shall be such as to
full reimburse as attorney’s fees reasonably incurred.

 

If any Guarantor is a corporation, partnership, or limited liability
company, such individual executing this Guaranty on said entity’s behalf
represents and warrants that he or she is duty authorized to execute this
Guaranty on behalf of such entity.

 

If
this Form has been filled in, it has been prepared for submission to your
attorney for his approval. No representation or recommendation is made by the
AIR Commercial Real Estate Associates, the real estate broker or its agents or
employees as to this legal sufficiency, legal effect, or tax consequences of
this Form or this transportation retating thereto.

 

	
  Executed
  at:

  	
  Argyle Security Inc.

  	
   

  	
  /s/ Donald Neville

  
	
  On:

  	
  Sept
  5, 2008

  	
   

  	
  Argyle Security Inc.

  
	
  Address:

  	
  200
  Concord Plaza, Suite 700

  	
   

  	
   

  
	
   

  	
  San
  Antonio, TX 78239

  	
   

  	
  “GUARANTORS”

  
	
  MARTIN/ISI-GUARANTY#2

  	
   

  	
   

  
						

 

	
  ©1998
  - AIR COMMERCIAL REAL ESTATE ASSOCIATION

  	
   

  	
  FORM GR-2-09/06E

  

 

1Exhibit 10.1

 

************************************************************************************************************

 

AGREEMENT OF LEASE

 

Between

 

CRP/CAPSTONE 14W PROPERTY
OWNER, L.L.C.

 

                               Landlord,

 

and

 

ENERNOC, INC.,

 

                               Tenant,

 

Dated: September 9,
2008

 

PREMISES:

 

Unit 6A

 

14 Wall Street

 

New York, New York

 

************************************************************************************************************

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1 RENT

  	
  4

  
	
   

  	
   

  
	
  ARTICLE 2 PREPARATION OF THE DEMISED PREMISES

  	
  5

  
	
   

  	
   

  
	
  ARTICLE 3 ADJUSTMENTS OF RENT

  	
  6

  
	
   

  	
   

  
	
  ARTICLE 4 ELECTRICITY

  	
  9

  
	
   

  	
   

  
	
  ARTICLE 5 USE

  	
  11

  
	
   

  	
   

  
	
  ARTICLE 6 ALTERATIONS AND INSTALLATIONS

  	
  11

  
	
   

  	
   

  
	
  ARTICLE 7 REPAIRS

  	
  15

  
	
   

  	
   

  
	
  ARTICLE 8 REQUIREMENTS OF LAW

  	
  16

  
	
   

  	
   

  
	
  ARTICLE 9 INSURANCE, LOSS, REIMBURSEMENT, LIABILITY

  	
  17

  
	
   

  	
   

  
	
  ARTICLE 10 DAMAGE BY FIRE OR OTHER CAUSE

  	
  20

  
	
   

  	
   

  
	
  ARTICLE 11 ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.

  	
  21

  
	
   

  	
   

  
	
  ARTICLE 12 CERTIFICATE OF OCCUPANCY

  	
  26

  
	
   

  	
   

  
	
  ARTICLE 13 ADJACENT EXCAVATION; SHORING

  	
  26

  
	
   

  	
   

  
	
  ARTICLE 14 CONDEMNATION

  	
  27

  
	
   

  	
   

  
	
  ARTICLE 15 ACCESS TO DEMISED PREMISES; CHANGES

  	
  28

  
	
   

  	
   

  
	
  ARTICLE 16 CONDITIONS OF LIMITATION

  	
  29

  
	
   

  	
   

  
	
  ARTICLE 17 RE-ENTRY BY LANDLORD; INJUNCTION

  	
  31

  
	
   

  	
   

  
	
  ARTICLE 18 DAMAGES

  	
  32

  
	
   

  	
   

  
	
  ARTICLE 19 LANDLORD’S RIGHT TO PERFORM TENANT’S
  OBLIGATIONS

  	
  33

  
	
   

  	
   

  
	
  ARTICLE 20 QUIET ENJOYMENT

  	
  33

  
	
   

  	
   

  
	
  ARTICLE 21 SERVICES AND EQUIPMENT

  	
  34

  
	
   

  	
   

  
	
  ARTICLE 22 DEFINITIONS

  	
  36

  
	
   

  	
   

  
	
  ARTICLE 23 INVALIDITY OF ANY PROVISION

  	
  37

  

 

 

	
  ARTICLE 24 BROKERAGE

  	
  37

  
	
   

  	
   

  
	
  ARTICLE 25 SUBORDINATION

  	
  37

  
	
   

  	
   

  
	
  ARTICLE 26 CERTIFICATE OF TENANT

  	
  39

  
	
   

  	
   

  
	
  ARTICLE 27 LEGAL PROCEEDINGS; WAIVER OF JURY TRIAL; WAIVER
  OF DAMAGES

  	
  40

  
	
   

  	
   

  
	
  ARTICLE 28 SURRENDER OF PREMISES

  	
  40

  
	
   

  	
   

  
	
  ARTICLE 29 RULES AND REGULATIONS

  	
  40

  
	
   

  	
   

  
	
  ARTICLE 30 CONSENTS AND APPROVALS

  	
  41

  
	
   

  	
   

  
	
  ARTICLE 31 NOTICES

  	
  41

  
	
   

  	
   

  
	
  ARTICLE 32 NO WAIVER

  	
  42

  
	
   

  	
   

  
	
  ARTICLE 33 CAPTIONS

  	
  42

  
	
   

  	
   

  
	
  ARTICLE 34 INABILITY TO PERFORM

  	
  43

  
	
   

  	
   

  
	
  ARTICLE 35 NO REPRESENTATIONS BY LANDLORD

  	
  43

  
	
   

  	
   

  
	
  ARTICLE 36 NAME OF BUILDING

  	
  43

  
	
   

  	
   

  
	
  ARTICLE 37 RESTRICTIONS UPON USE

  	
  43

  
	
   

  	
   

  
	
  ARTICLE 38 ARBITRATION

  	
  44

  
	
   

  	
   

  
	
  ARTICLE 39 INDEMNITY

  	
  44

  
	
   

  	
   

  
	
  ARTICLE 40 MEMORANDUM OF LEASE

  	
  44

  
	
   

  	
   

  
	
  ARTICLE 41 SECURITY

  	
  44

  
	
   

  	
   

  
	
  ARTICLE 42 MISCELLANEOUS

  	
  45

  
	
   

  	
   

  
	
  ARTICLE 43 INTENTIONALLY OMITTED.

  	
  48

  
	
   

  	
   

  
	
  ARTICLE 44 ICIP

  	
  48

  

 

SCHEDULES

A                                                Floor
Plan

B                                                  Rules and
Regulations

C                                                  Landlord’s
Rules and Regulations for Alterations

D                                                 Landlord
Work and Tenant Work

 

3

 

AGREEMENT OF
LEASE, made as of this 9th day of September, 2008, CRP/CAPSTONE 14W
PROPERTY OWNER, L.L.C., a Delaware limited liability company, having an office
c/o CB Richard Ellis, Inc., 14 Wall Street, 5th Floor, New York, New York
10005 (hereinafter referred to as “Landlord”) and ENERNOC, INC., a Delaware
corporation having an office at 75 Federal Street, Suite 300, Boston,
Massachusetts 02110 (hereinafter referred to as “Tenant”).

 

W I T N E S S E T H:

 

Landlord hereby
leases and Tenant hereby hires from Landlord, in the building (hereinafter
referred to as the “Building”) known as 14 Wall Street, New York, New York, the
following space:  Unit 6A, being a
portion of the rentable space on the sixth (6th) floor, shown as the
cross-hatched area identified as the “Demised Premises” on the plan annexed
hereto as Schedule A (which space is hereinafter referred to as “the demised
premises”), which shall commence upon the execution of this Lease by Landlord
and Tenant (“Lease Execution”) subject to postponement as provided in Section 42.07
(such date on which the term of the Lease commences is hereinafter referred to
as the “Commencement Date”), and which shall end on December 31, 2011
(such date on which the term of the Lease expires is hereinafter referred to as
the “Expiration Date”) or until such term shall sooner cease and terminate as
hereinafter provided. Landlord acknowledges and agrees that Tenant shall have
the right and option to occupy the demised premises upon the Lease Execution. During
the term Tenant shall have use of, and access to, the Premises, 24 hours per
day, seven days per week, 365 days per year, subject to the terms of this
Lease.

 

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

 

ARTICLE 1

 

RENT

 

1.01                           Tenant shall pay to Landlord
fixed annual rent (hereinafter referred to as “fixed annual rent”) at the rate
in listed in the schedule below (subject to adjustment as provided in Section 42.07
below):

 

	
   

  	
   

  	
  Per Annum:

  	
   

  	
  Per Month:

  	
   

  
	
  Lease Execution
  - August 31, 2009

  	
   

  	
  $

  	
  283,929.00

  	
   

  	
  $

  	
  23,660.75

  	
   

  
	
  September 1,
  2009 - August 31, 2010

  	
   

  	
  $

  	
  299,049.87

  	
   

  	
  $

  	
  24,920.82

  	
   

  
	
  September 1,
  2010 - December 31, 2011

  	
   

  	
  $

  	
  314,426.28

  	
   

  	
  $

  	
  26,202.19

  	
   

  

 

Tenant agrees to pay
the fixed annual rent in lawful money of the United States of America, in equal
monthly installments in advance on the first day of each calendar month during
said term, at the office of Landlord or such other place in the United States
of America as Landlord may designate, without any setoff or deduction
whatsoever, except such deduction as may be occasioned by the occurrence of any
event permitting or requiring a deduction from or abatement of rent as
specifically set forth in Articles 10 and 14 hereof. Should the obligation to

 

4

 

pay fixed annual rent commence on any day other than on the first day
of a month, then the fixed annual rent for such month shall be prorated on a
per diem basis.

 

The first month’s
installment of fixed annual rent due under this Lease shall be paid by Tenant
upon the execution of this Lease.

 

The first three
months of fixed annual rent shall be fully abated. If Lease Execution occurs
mid-month, Tenant shall pay a pro-rated payment of fixed annual rent due when
the then next month’s payment of fixed annual rent is due.

 

1.02                           Tenant shall pay the fixed annual
rent and additional rent as above and as hereinafter provided, by good and
sufficient check (subject to collection). All sums other than fixed annual rent
payable by Tenant hereunder shall be deemed additional rent (for default in the
payment of which Landlord shall have the same remedies as for a default in the
payment of fixed annual rent), and shall be payable on demand, unless other
payment dates are hereinafter provided.

 

1.03                           If Tenant shall fail to pay when
due any installment of fixed annual rent or any payment of additional rent for
a period of 5 days after such installment or payment shall have become due, (i) Tenant
shall pay to Landlord a late payment charge of four (4%) percent of the amount
and (ii) Tenant shall pay interest thereon at the Interest Rate (as such
term is defined in Article 22 hereof), from the date when such installment
or payment shall have become due to the date of the payment thereof. Such late
payment charges and interest shall be deemed additional rent.

 

1.04                           If any of the fixed annual rent
or additional rent payable under the terms and provisions of this Lease shall
be or become uncollectible, reduced or required to be refunded because of any
Legal Requirement (as such term is defined in Article 22 hereof), Tenant
shall enter into such agreement(s) and take such other steps (without
additional expense to Tenant) as Landlord may 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 may be legally
permissible (and not in excess of the amounts reserved therefor under this
Lease). Upon the termination of such legal rent restriction, (a) the rents
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, to the maximum extent legally permissible, an amount equal to (i) the
rents which would have been paid pursuant to this Lease but for such legal rent
restriction less (ii) the rents paid by Tenant during the period such
legal rent restriction was in effect.

 

ARTICLE 2

 

PREPARATION OF THE DEMISED PREMISES

 

Tenant
acknowledges that Tenant has inspected the demised premises and is fully
acquainted with the demised premises and the condition thereof and agrees to
accept the demised premises absolutely “as is” in their condition and state of
repair existing as of the date hereof, subject to removal by the existing
tenant or occupant, if any, of its property and the performance

 

5

 

of the Landlord Work (as defined below), and further agrees that
Landlord shall not be required to perform any work, supply any materials or
incur any expense to prepare the demised premises for Tenant’s occupancy. Landlord
shall deliver possession of the demised premises to Tenant on the Commencement
Date in “broom clean” condition, with all systems serving the same in good and
operational condition. Landlord agrees to complete the items referred to as “Landlords’
Work” in Schedule D (attached hereto) in the referenced timelines specific to
each item. If said specific items are not completed by such referenced time,
then Tenant shall be entitled to a credit of $250 per day for each day beyond
such date through the date such work is completed, such credit to be applied
against fixed rent due hereunder when such obligation commences after the
abatement period.

 

ARTICLE 3

 

ADJUSTMENTS OF RENT

 

3.01                           For the purposes of this Article 3,
the following definitions shall apply:

 

(a)     The
term “Base Tax” shall be deemed to mean the amount of Taxes (as hereinafter
defined) for the New York City real estate tax fiscal year commencing on July 1,
2008 and ending June 30, 2009 (the “Base Year”). Landlord represents and
warrants that the Building and the Land are fully assessed and that neither the
Building nor the Land are currently subject to any agreement which reduces the
amount of Taxes which would otherwise be payable by Landlord with respect to
the Building and/or Land had such agreement not existed.

 

(b)     The
term “Tenant’s Tax Proportionate Share” shall be deemed to mean .7354%.

 

(c)     The
term “Taxes” shall mean all real estate taxes, assessments, governmental
levies, business improvement district charges and assessments, municipal taxes,
county taxes or any other governmental charge, general or special, ordinary or
extraordinary, unforeseen as well as foreseen, of any kind or nature
whatsoever, which are or may be assessed, levied or imposed upon all or any
part of the Building, the parcel of Land upon which it is erected (herein
called, the “Land”) and the sidewalks, plazas or streets in front of or
adjacent thereto, including any tax, excise or fee measured by or payable with
respect to any rent, and levied against Landlord and/or the Land and/or
Building, under the laws of the United States, the State of New York, or any
political subdivision thereof. If, due to a future change in the method of
taxation or in the taxing authority, a new or additional real estate tax, or a
franchise, income, transit, profit or other tax or governmental imposition,
however designated, shall be levied against Landlord, and/or the Land and/or
Building, in addition to, or in substitution in whole or in part for any tax
which would constitute “Taxes”, or in lieu of additional Taxes, such tax or
imposition shall be deemed for the purposes hereof to be included within the
term “Taxes”.

 

(d)     The
term “Tax Year” shall mean each period of twelve months, commencing on the
first day of July of each such period, in which occurs any part of the
term of this Lease or such other period of twelve months occurring during the
term of this Lease as hereafter may be duly adopted as the fiscal year for real
estate tax purposes of the City of New York.

 

6

 

(e)     The
term “Escalation Statement” shall mean a statement setting forth the amount
payable by Tenant for a specified Tax Year (as the case may be) pursuant to
this Article 3, which shall be delivered with a copy of the applicable tax
bill on which the Escalation Statement is based upon the written request from
Tenant.

 

3.02       A.     After
the Base Year, Tenant shall pay as additional rent for each Tax Year a sum
(hereinafter referred to as “Tenant’s Tax Payment”) equal to Tenant’s Tax
Proportionate Share of the amount by which the Taxes for such Tax Year exceed
the Base Tax. Tenant’s Tax Payment for each Tax Year shall be due and payable
in monthly installments, in advance, on the first day of each month beginning
at least six months prior to the commencement of each Tax Year, based upon an
Escalation Statement furnished by Landlord. If an Escalation Statement is
issued before Taxes for the Tax Year involved have been finally established
Landlord may base Tenant’s Tax Payment set forth therein upon its reasonable
estimates or, after receipt of tax bills for any Tax Year, upon payments
required by such tax bills. If an Escalation Statement is furnished to Tenant
after the commencement of the period over which payments are to be made for the
Tax Year in respect of which such Escalation Statement is rendered, Tenant
shall, within fifteen (15) days thereafter, pay to Landlord an amount equal to
the amount of any underpayment of Tenant’s Tax Payment with respect to such Tax
Year and, in the event of an overpayment, Landlord shall permit Tenant to
credit against subsequent payments under this Lease the amount of Tenant’s
overpayment. If there shall be any increase in Taxes for any Tax Year, whether
prior to, during or after such Tax Year, Landlord shall furnish a revised
Escalation Statement for such Tax Year, and Tenant’s Tax Payment for such Tax
Year shall be adjusted and paid substantially in the same manner as provided in
the preceding sentence. If during the term of this Lease, taxes are required to
be paid (either to the appropriate taxing authorities or as tax escrow payments
to a superior mortgagee) in full or in monthly, quarterly, or other
installments, on any other date or dates than as presently required, then at
Landlord’s option, Tenant’s Tax Payments shall be correspondingly accelerated
or revised so that said Tenant’s Tax Payments are due at least thirty (30) days
prior to the date payments are due to the taxing authorities or the superior
mortgagee. The benefit of any discount for any early payment or prepayment of
Taxes shall accrue solely to the benefit of Landlord and such discount shall
not be subtracted from Taxes.

 

B.     If
the real estate tax fiscal year of The City of New York shall be changed during
the term of this Lease, any Taxes for such fiscal year, a part of which is
included within a particular Tax Year and a part of which is not so included,
shall be apportioned on the basis of the number of days in such fiscal year
included in the particular Tax Year for the purpose of making the computations
under this Section 3.02.

 

C.     If
Landlord shall receive a refund of Taxes for any Tax Year, Landlord shall
permit Tenant to credit against subsequent payments under this Lease, Tenant’s
Tax Proportionate Share of the refund (after deducting all costs incurred by
Landlord to obtain such refund which have not been previously recovered); but
not to exceed Tenant’s Tax Payment paid for such Tax Year.

 

D.     If
the Base Tax is reduced as a result of a certiorari proceeding or otherwise
Landlord shall adjust the amounts previously paid by Tenant pursuant to the

 

7

 

provisions of Section 3.03 hereof, and Tenant shall pay the amount
of said adjustment within thirty (30) days after demand setting forth the
amount of said adjustment.

 

3.03                           Tenant shall pay to the
appropriate taxing authority occupancy tax on all rental subject thereto
(including occupancy tax on prepaid rent paid pursuant to Section 1.01
hereof). Tenant shall pay to Landlord upon demand, as additional rent, any
occupancy tax or rent tax now in effect or hereafter enacted, if payable by
Landlord in the first instance or hereafter required to be paid by Landlord.

 

3.04                           In the event that the
Commencement Date shall be other than the first day of a Tax Year or the date
of the expiration or other termination of this Lease shall be a day other than
the last day of a Tax Year, then in such event in applying the provisions of
this Article 3 with respect to any Tax Year in which such event shall have
occurred, appropriate adjustments shall be made to reflect the occurrence of
such event on a basis consistent with the principles underlying the provisions
of this Article 3 taking into consideration the portion of such Tax Year
which shall have elapsed after the term hereof commences in the case of the
Commencement Date, and prior to the date of such expiration or termination in
the case of the Expiration Date or other termination.

 

3.05                           Payments shall be made pursuant
to this Article 3 notwithstanding the fact that an Escalation Statement is
furnished to Tenant after the expiration of the term of this Lease.

 

3.06                           In no event shall the fixed
annual rent ever be reduced by operation of this Article 3 and the rights
and obligations of Landlord and Tenant under the provisions of this Article 3
with respect to any additional rent shall survive the termination of this
Lease.

 

3.07                           Landlord’s failure to render an
Escalation Statement with respect to any Tax Year shall not prejudice Landlord’s
right to thereafter render an Escalation Statement with respect thereto or with
respect to any subsequent Tax Year.

 

3.08                           Each Escalation Statement shall
be conclusive and binding upon Tenant unless within forty five (45) days after
receipt of such Escalation Statement Tenant shall notify Landlord that it
disputes the correctness of such Escalation Statement, specifying the
particular respects in which such Escalation Statement is claimed to be incorrect.
Any dispute relating to any Escalation Statement, not resolved within ninety
(90) days after the giving of such Escalation Statement, may be submitted to
arbitration by either party pursuant to Article 38 hereof. Pending the
determination of such dispute, Tenant shall pay additional rent in accordance
with the Escalation Statement that Tenant is disputing, without prejudice to
Tenant’s position.

 

3.09                           If Landlord shall pay or incur
any reasonable costs or expenses (including without limitation the fees and
disbursements of attorneys, third party consultants, experts and others) in
contesting any Taxes for any Tax Year (other than any such year for which such
Taxes comprise all or part of the Base Tax) or in connection with any challenge
to the assessed valuation of all or part of the Building or the parcel of land
on which the Building is constructed (the “Land”) or otherwise in connection
with any endeavor to lower the Taxes for any Tax Year (other than any such year
for which such Taxes comprise all or part of the Base Tax) then, within

 

8

 

twenty (20) days after request by Landlord, Tenant shall pay to
Landlord Tenant’s Tax Proportionate Share of the aggregate amounts of such
costs and expenses so paid or incurred by Landlord.

 

ARTICLE 4

 

ELECTRICITY

 

4.01                           Landlord agrees that prior to
the Commencement Date risers, feeders and wiring will be installed in the
Building by Landlord, and during the term Landlord shall furnish electrical
service to the demised premises except as provided below. After the
Commencement Date any additional risers, feeders or other equipment or service
proper or necessary to supply Tenant’s electrical requirements, upon written
request of Tenant, will be installed by Landlord at the sole cost and expense
of Tenant, if in Landlord’s sole judgment the same are necessary and will not
cause permanent damage or injury to the Building or the demised premises or
cause or create a dangerous or hazardous condition or entail excessive or unreasonable
alterations, repairs or expense or interfere with or disturb other tenants or
occupants.

 

4.02                           INTENTIONALLY OMITTED.

 

4.03                           Tenant shall pay as its
electricity charge hereunder (exclusive of HVAC Electricity (as hereinafter
defined) the sum of $3.25 per square foot per annum multiplied by the rentable
square footage of the demised premises (the “Base Charge”) which shall be
payable in equal monthly installments together with the Tenant’s payments of
fixed annual rent hereunder on the first day of each calendar month. In the
event Landlord’s consultant in good faith and based on sound engineering
principles shall determine that Tenant’s electricity charge should exceed the
Base Charge, Tenant’s Base Charge shall be adjusted retroactively at such time as
Landlord’s electrical consultant’s determination is made. Any deficiency for
such prior period shall be payable upon demand. In no event shall the Base
Charge be reduced pursuant to the terms hereof. Tenant shall permit Landlord’s
electrical consultant to make surveys in the demised premises from time to time
during normal business hours regarding the electrical equipment and fixtures
and the use of electric current therein.

 

4.04                           INTENTIONALLY OMITTED.

 

4.05                           If Tenant pays for electric
current consumed pursuant to Section 4.04 above, Landlord reserves the
right to discontinue furnishing electric energy to Tenant at any time that
electric service may be obtained by Tenant directly from the public utility
company servicing the Building upon thirty (30) days’ prior written notice to
Tenant, and from and after the effective date of such termination, Landlord
shall no longer be obligated to furnish Tenant with electric energy, provided,
however that such termination date may be extended for such time as is reasonably
necessary for Tenant to make arrangements to obtain electric service directly
from the public utility company servicing the Building. If Landlord exercises
such right of termination, this Lease shall remain unaffected thereby and shall
continue in full force and effect; and thereafter Tenant shall diligently
arrange to obtain electric service directly from the public utility company
servicing the Building, and thereafter Tenant shall have no obligation to make
further payments under Section 4.03 above. Tenant shall have the right to
use the risers,

 

9

 

feeders and other electric equipment serving the Building and in no
event shall Tenant be responsible for any additional installations.

 

4.06                           Tenant’s use of electric current
in the demised premises shall not at any time exceed the capacity of any of the
electrical conductors and equipment in or otherwise serving the demised
premises.

 

4.07                           To the extent permitted by
applicable law, Landlord shall not be liable in any way to Tenant for any
failure or defect in the supply or character of electric energy furnished to
the demised premises by reason of any requirement, act or omission of the
public utility providing the Building with electricity or for any other reason
whatsoever, unless the result of gross negligence or willful misconduct
Landlord, or Landlord’s agents, contractors or employees, in which event if
Tenant is unable to use all or a portion of the Premises for its business
purposes for a period of fifteen (15) days, the fixed rent and additional rent
due hereunder shall abate until Tenant is again able to use the demised
premises for its business purposes.

 

4.08                           Tenant shall purchase from
Landlord or Landlord’s agent all lighting tubes, lamps, bulbs and ballasts used
in the demised premises and Tenant shall pay Landlord’s usual charges for
providing and installing same on demand as additional rent, except Landlord
shall replace, at its expense, any broken and non-operating lighting tubes,
lamps, bulbs and ballasts existing as of the Commencement Date.

 

4.09                           Any determinations with respect
to charges for electricity on floors occupied by more than one tenant or
otherwise which must be made pursuant to the terms of this Lease shall be made
by a reputable, independent electrical consultant selected by Landlord (“Landlord’s
electrical consultant”). Any determination made by Landlord’s electrical
consultant pursuant to or in connection with this Lease shall be binding and
conclusive on Landlord and on Tenant unless Tenant disputes such determination
as hereinafter provided. Tenant shall have the right to give a notice (the “Dispute
Notice”) to Landlord, within thirty (30) days after the date it is notified of
any determination by Landlord’s electrical consultant, that (i) Tenant has
engaged its own electrical consultant (“Tenant’s electrical consultant”) to
verify the determination of Landlord’s electrical consultant. If Tenant’s
electrical consultant and Landlord’s electrical consultant cannot agree within
ten (10) days after the Dispute Notice, if any, is given on what an
appropriate resolution of their dispute should be, then either party, upon
notice to the other, may submit the issue to arbitration in accordance with the
provisions of Article 38 of this Lease, the reasonable cost of any such
arbitration (but not the fees and expenses of Landlord’s attorneys) to be borne
solely by Tenant in the event such dispute relates to a determination with
respect to electricity provided to a portion of the Building other than the
demised premises. While such dispute is being resolved, Tenant shall pay such
charges and payments as would be due hereunder if Landlord’s electrical
consultant’s determination were correct without prejudice to Tenant’s position.
In the event it is finally determined that there has been an overpayment by
Tenant, such overpayment shall be credited against future rent payments due
from Tenant under the Lease and in the event of an underpayment, the amount of
such underpayment by Tenant shall be paid by Tenant to Landlord within twenty
(20) days after such determination is made.

 

10

 

4.10                           In the event the Tenant occupies
a portion of a floor, with respect to the electric current used (i) to run
the air conditioning system on Tenant’s floor during usual operating hours,
including without limitation, for purposes of “early morning warm-up” and (ii) for
the lighting of the common areas on Tenant’s floor, Landlord shall charge
Tenant its proportionate share of such charge plus sales tax and the
administrative fees referred to above based upon the proportion which the
rentable area of the demised premises bears to the rentable area of that
portion of the floor which is subject to leases whose terms have commenced. If
Tenant or any other occupant of the floor on which the demised premises is
located utilizes the air-conditioning system disproportionately (i.e., at times
other than during usual operating times), Landlord shall equitably adjust the
charge hereunder in such a manner that the other tenant(s) (or Tenant, as
the case may be) are not charged for such usage.

 

ARTICLE 5

 

USE

 

5.01                           The demised premises shall be
used solely as and for executive and general offices, and for no other purpose.
Landlord represents and warrants that the existing certificate of occupancy for
the demised premises permits the use of the demised premises for executive and
general offices.

 

5.02                           Tenant shall not use or permit
the use of the demised premises or any part thereof in any way which would
violate any of the covenants, agreements, terms, provisions and conditions of
this Lease or for any unlawful purposes or in any unlawful manner or in
violation of the Certificate of Occupancy for the demised premises or the
Building, and Tenant shall not suffer or permit the demised premises or any
part thereof to be used in any manner or anything to be done therein or
anything to be brought into or kept therein which, in the reasonable judgment
of Landlord, shall in any way impair or tend to impair the character,
reputation or appearance of the Building as a high quality office building,
impair or interfere with or tend to impair or interfere with any of the
Building services or the proper and economic heating, cleaning,
air-conditioning or other servicing of the Building or the demised premises, or
materially impair or interfere with or tend to materially impair or interfere
with the use of any of the other areas of the Building by, or occasion
discomfort, inconvenience or annoyance to, any of the other tenants or
occupants of the Building. Tenant shall not install any electrical or other
equipment of any kind which, in the reasonable judgment of Landlord, might
cause any such impairment, interference, discomfort, inconvenience or annoyance
(it being agreed that the normal operation of a localized wireless network by
Tenant shall not be deemed to violate the foregoing).

 

ARTICLE 6

 

ALTERATIONS AND INSTALLATIONS

 

6.01                           Tenant shall make no
alterations, installations, additions or improvements in or to the demised
premises without Landlord’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed and then only by contractors or
mechanics first approved by Landlord, which consent shall not be unreasonably withheld,
conditioned or delayed   All such work,
alterations, installations, additions and improvements shall be done at Tenant’s

 

11

 

sole expense and at such times and in such manner as Landlord may from
time to time reasonably designate (it being agreed that such work may be
performed during regular business hours of the Building unless the same is
expected to materially interfere with the operation of the Building or other
tenants). Prior to commencement of such work and/or during the progress thereof
and as Tenant makes payment therefor, Tenant shall obtain and deliver to
Landlord written, unconditional waivers of mechanic’s or other liens on the
real property in which the demised premises are located, signed by all
architects, engineers, contractors, mechanics and designers to become involved
in such work. Tenant shall also provide at Landlord’s request such financial
security as Landlord shall require to guarantee completion of Tenant’s work and
payment of all contractors and suppliers utilized in connection therewith. Notwithstanding
the foregoing, Landlord hereby consents to the installation of the alterations
described on Schedule D as (the “Tenant Work” and together with Landlord’s Work
the “Initial Work”) and Landlord further agrees that (i) Tenant shall not
be required to provide any financial security with respect to the same, (ii) Landlord
shall not charge Tenant any oversight, management or approval fees in
connection with the same, (iii) Tenant shall have no obligation to remove
such alterations at the end of the term, and (iv) Tenant shall not be
required to provide “as built” plans with respect to such alterations.

 

Any Tenant’s work
in the demised premises (other than work which is cosmetic in nature) shall be
effected solely in accordance with plans and specifications first approved in
writing by Landlord, which consent shall not be unreasonably withheld. Tenant
shall reimburse Landlord promptly upon demand for any reasonable costs and
expenses incurred by Landlord in connection with its review of such Tenant’s
plans and specifications by architects, engineers and/or consultants engaged by
it for that purpose. Landlord may, at Landlord’s election, assume
responsibility at Tenant’s expense for filing of plans and obtaining permits,
and may utilize Landlord’s consultants for such purpose but subject to delays
caused by the City of New York.

 

Any such approved
alterations and improvements shall be performed in accordance with the
foregoing and the following provisions of this Article 6:

 

1.           All
work shall be done in a good and workmanlike manner.

 

2.           (a)     In
the event Tenant shall employ any contractor to do in the demised premises any
work permitted by this Lease, such contractor and any subcontractor shall agree
to employ only such labor as will not result in jurisdictional disputes or
strikes or result in causing disharmony with other workers employed at the
Building. Tenant will inform Landlord in writing of the names of any contractor
or subcontractor Tenant proposes to use in the demised premises at least ten (10) days
prior to the beginning of work by such contractor or subcontractor.

 

(b)     Tenant
covenants and agrees to pay to contractor, as the work progresses, the entire
cost of supplying the materials and performing the work shown on Tenant’s
approved plans and specifications.

 

3.           All
such alterations shall be effected in compliance with all applicable laws,
ordinances, rules and regulations of governmental bodies having or
asserting jurisdiction in

 

12

 

the demised premises and in accordance with Landlord’s Rules and
Regulations for Alterations as the same may be in effect from time to time.

 

4.           Tenant
shall keep the Building and the demised premises free and clear of all liens
for any work or material claimed to have been furnished to Tenant or to the
demised premises on Tenant’s behalf, and all work to be performed by Tenant
shall be done in a manner which will not unreasonably interfere with or disturb
other tenants or occupants of the Building.

 

Tenant covenants
and agrees that no security agreement, lien, lease, conditional sales
agreement, chattel mortgage or other title retention or instrument of similar
import (a “Security Agreement”) shall be placed upon any improvement made by
Tenant which is affixed to the demised premises. In the event that any of
Tenant’s property are purchased or acquired by Tenant subject to a Security
Agreement, Tenant agrees (i) that no Security Agreement or Uniform
Commercial Code filing statement shall be permitted to be filed against the
demised premises or the buildings of which they are a part, and (ii) to
cause to be inserted in any Security Agreement the following provision:  “Notwithstanding anything to the contrary
contained herein, this lease, chattel mortgage, conditional sales agreement,
title retention agreement or security agreement shall not create or be filed as
a lien against the land, building and improvements comprising the real property
in which the goods, machinery, equipment, appliances or other personal property
covered hereby are to be located or installed.”

 

5.           During
the progress of the work to be done by Tenant, said work shall be subject to
inspection by representatives of Landlord which shall be permitted access and
the opportunity to inspect, at all reasonable times, but this provision shall
not in any way whatsoever create any obligation on Landlord to conduct such an
inspection.

 

6.           With
respect to alteration or improvement work costing more than $15,000 (other than
the Initial Work), Tenant agrees to pay to Landlord or its managing agent, as
additional rent, promptly upon being billed therefor, a sum equal to ten (10%)
percent of the cost of such work or alteration, for Landlord’s indirect costs,
field supervision and coordination in connection with such work.

 

7.           Prior
to commencement of any work, Tenant shall furnish to Landlord certificates
evidencing the existence of:

 

(i)     workmen’s
compensation insurance covering all persons employed for such work;

 

(ii)    reasonable
comprehensive general liability and property damage insurance naming Landlord,
its designees, its mortgagees, and Tenant as insureds, with coverage of at
least $3,000,000 single limit; and

 

(iii)   such
other insurance as Landlord regularly and reasonably requires in connection
with alterations performed by tenants at the Building.

 

Notice is hereby
given that Landlord shall not be liable for any labor or materials furnished or
to be furnished to Tenant upon credit, and that no mechanic’s or other lien for
any

 

13

 

such labor or materials shall attach to or affect the reversion or
other estate or interest of Landlord in and to the demised premises.

 

8.           Tenant
shall, upon completion of any non-cosmetic alterations performed hereunder,
deliver to Landlord complete “as built” plans with respect thereto.

 

6.02                           Any mechanic’s lien, filed
against the demised premises or the Building for work claimed to have been done
for or materials claimed to have been furnished to Tenant shall be discharged
by Tenant at its expense within thirty (30) days after such filing, by payment,
filing of the bond required by law or otherwise.

 

6.03                           All alterations, installations,
additions and improvements made and installed by Landlord, if any, shall be the
property of Landlord and shall (subject to Section 6.04 hereof) remain
upon and be surrendered with the demised premises as a part thereof at the end
of the term of this Lease.

 

6.04                           All alterations, installations,
additions and improvements made and installed by Landlord to prepare the
demised premises for Tenant’s occupancy or by Tenant, or at Tenant’s expense,
upon or in the demised premises which are of a permanent nature and which
cannot be removed without damage to the demised premises or Building shall
become and be the property of Landlord, and shall remain upon and be
surrendered with the demised premises as a part thereof at the end of the term
of this Lease, except that Landlord shall have the right and privilege at any
time up to six (6) months prior to the expiration of the term of the Lease
to serve notice upon Tenant that any of such alterations, installations,
additions and improvements after the Initial Work shall be removed and, in the
event of service of such notice, Tenant will, at Tenant’s own cost and expense,
remove the same in accordance with such request, and restore the demised
premises to its original condition, ordinary wear and tear and casualty
excepted.

 

6.05                           Where furnished by or at the
expense of Tenant all furniture, furnishings and trade fixtures, including
without limitation, murals, business machines and equipment, counters, screens,
grille work, special panelled doors, cages, movable partitions, metal railings,
closets, panelling, lighting fixtures and equipment, drinking fountains,
refrigeration and air-handling equipment, and any other movable property shall
remain the property of Tenant which may at its option remove all or any part
thereof at any time prior to the expiration of the term of this Lease. In case
Tenant shall decide not to remove any part of such property, Tenant shall
notify Landlord in writing not less than three (3) months prior to the
expiration of the term of this Lease, specifying the items of property which it
has decided not to remove. If, within thirty (30) days after the service of
such notice, Landlord shall request Tenant to remove any of the said property, Tenant
shall at its expense remove the same in accordance with such request. As to
such property which Landlord does not request Tenant to remove, the same shall
be, if left by Tenant, deemed abandoned by Tenant and thereupon the same shall
become the property of Landlord.

 

6.06                           If any alterations,
installations, additions, improvements or other property which Tenant shall
have the right to remove or be requested by Landlord to remove as provided in
Sections 6.04 and 6.05 hereof (herein in this Section 6.06 called the “property”)
are not removed on or prior to the expiration of the term of this Lease,
Landlord shall have the right to remove the property and to dispose of the same
without accountability to Tenant and at the sole

 

14

 

cost and expense of Tenant. In case of any damage to the demised
premises or the Building resulting from the removal of the property Tenant
shall repair such damage or, in default thereof, shall reimburse Landlord for
Landlord’s cost in repairing such damage. This obligation shall survive any
termination of this Lease.

 

6.07                           Tenant shall keep records of
Tenant’s alterations, installations, additions and improvements costing in
excess of $20,000 and of the cost thereof. Tenant shall, within forty-five (45)
days after demand by Landlord, furnish to Landlord copies of such records and
cost if Landlord shall require same in connection with any proceeding to reduce
the assessed valuation of the Building, or in connection with any proceeding
instituted pursuant to Article 14 hereof or for any other reason or
purpose.

 

ARTICLE 7

 

REPAIRS

 

7.01                           Tenant shall take good care of
the demised premises and the fixtures and appurtenances therein and exclusively
serving the same and at its sole cost and expense make all repairs thereto as
and when needed to preserve the same in substantially the same order and
condition as existed on the Commencement Date, reasonable wear and tear, damage
by fire or other casualty excepted. With respect to the Building systems
exclusively serving the demised premises and provided the same are delivered in
good condition, Tenant shall be responsible for the cost to (i) repair and
maintenance of the Unit (as defined in Section 21.01 hereof) and Tenant’s
internal air-distribution system to the point at which the same connects to the
Building condenser water system, (ii) repair and maintenance of the
internal electrical system to the panel box serving the demised premises, and (iii) repair
and maintenance of all plumbing fixtures and lines in and serving the demised
premises to the point at which the same join the main vertical risers of the
Building. All such repairs and maintenance with respect to such Building system
shall be performed by Landlord or by a contractor selected and approved by
Landlord and the commercially reasonable cost shall be payable by Tenant as
additional rent within fifteen (15) days after rendition by Landlord of any
bill(s) pertaining thereto. Except as otherwise provided in Section 9.08
hereof, all damage or injury to the demised premises and to its fixtures,
appurtenances and equipment or to the Building or to its fixtures,
appurtenances and equipment caused by or resulting from the negligence or
willful misconduct of, or alterations made by, Tenant, Tenant’s servants,
employees, invitees or licensees, or caused by Tenant moving property in or out
of the Building or by installation or removal of furniture, fixtures or other
property, shall be repaired, restored or replaced promptly by Tenant at its sole
cost and expense, which repairs, restorations and replacements shall be in
quality and class equal to the original work or installations. If Tenant fails
to make such repairs, restoration or replacements, same may be made by Landlord
at the expense of Tenant and such expense shall be collectible as additional
rent and shall be paid by Tenant within fifteen (15) days after rendition of a
bill therefor.

 

The
exterior walls of the Building, the portions of any window sills outside the
windows, and the windows are not part of the premises demised by this Lease and
Landlord reserves all rights to such parts of the Building.

 

15

 

7.02                           Tenant shall not place a load
upon any floor of the demised premises exceeding the floor load per square foot
area which such floor was designed to carry and which is allowed by law.

 

7.03                           Business machines and mechanical
equipment used by Tenant which cause vibration, noise, cold or heat that may be
transmitted to the Building structure or to any leased space to such a degree
as to be reasonably objectionable to Landlord or to any other tenant in the
Building shall be placed and maintained by Tenant at its expense in settings of
cork, rubber or spring type vibration eliminators sufficient to absorb and
prevent such vibration or noise, or prevent transmission of such cold or heat. The
parties hereto recognize that the operation of elevators, air-conditioning and
heating equipment will cause some vibration, noise, heat or cold which may be
transmitted to other parts of the Building and demised premises. Landlord shall
be under no obligation to endeavor to reduce such vibration, noise, heat or
cold.

 

7.04                           Except as otherwise specifically
provided in this Lease, 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 the making of any
repairs, alterations, additions or improvements in or to any portion of the
Building or the demised premises or in or to fixtures, appurtenances or
equipment thereof.

 

ARTICLE 8

 

REQUIREMENTS OF LAW

 

8.01                           Landlord represents and warrants
that the Premises and the Building comply with all laws, orders and regulations
of federal, state, county and municipal authorities (“Laws”), and with any
direction of any public officer or officers, pursuant to law, which shall
impose any violation, order or duty upon Landlord or Tenant with respect to the
demised premises, or the use or occupation thereof, and that Landlord, at
Landlord’s expense, shall comply with all such Laws throughout the terms of
this Lease, except that Tenant, at Tenant’s expense, shall comply with all Laws
applicable to the Premises to the extent the same are applicable thereto due to
the specific use made thereof by Tenant.

 

8.02                           Notwithstanding the provisions
of Section 8.01 hereof, Tenant, at its own cost and expense, may contest,
in any manner permitted by law (including appeals to a court, or governmental
department or authority having jurisdiction in the matter), the validity or the
enforcement of any governmental act, regulation or directive with which Tenant
is required to comply pursuant to this Lease, and may defer compliance
therewith provided that:

 

(a)          such noncompliance shall not
subject Landlord to criminal prosecution or subject the Land and/or Building to
lien or sale;

 

(b)          such noncompliance shall not be
in violation of any fee mortgage, or of any ground or underlying lease or any
mortgage thereon;

 

16

 

(c)           Tenant
shall first deliver to Landlord a surety bond issued by a surety company of
recognized responsibility, or other security satisfactory to Landlord,
indemnifying and protecting Landlord against any loss or injury by reason of
such noncompliance; and

 

(d)           Tenant
shall promptly and diligently prosecute such contest.

 

Landlord,
without expense or liability to it, shall cooperate with Tenant and execute any
documents or pleadings required for such purpose, provided that Landlord shall
reasonably be satisfied that the facts set forth in any such documents or
pleadings are accurate.

 

ARTICLE 9

 

INSURANCE, LOSS, REIMBURSEMENT,
LIABILITY

 

9.01         Tenant
shall not do or permit to be done any act or thing upon the demised premises,
which will invalidate or be in conflict with New York standard fire insurance
policies covering the Building, and fixtures and property therein, or which
would increase the rate of fire insurance applicable to the Building to an
amount higher than it otherwise would be; and Tenant shall neither do nor
permit to be done any act or thing upon the demised premises which shall or
might subject Landlord to any liability or responsibility for injury to any
person or persons or to property by reason of any business or operation being
carried on within the demised premises; but nothing in this Section 9.01
shall prevent Tenant’s use of the demised premises for the purposes stated in Article 5
hereof.

 

9.02         If,
as a result of any violation of this Lease by Tenant, the rate of fire
insurance applicable to the Building shall be increased to an amount higher
that it otherwise would be, then in addition to any other remedies which
Landlord has hereunder for any such violations of the terms of this Lease,
Tenant shall reimburse Landlord for all increases of Landlord’s fire insurance
premiums so caused; such reimbursement to be additional rent payable upon the
first day of the month following any outlay by Landlord for such increased fire
insurance premiums.  In any action or proceeding
wherein Landlord and Tenant are parties, a schedule or “makeup” of rates for
the Building or demised premises issued by the body making fire insurance rates
for the demised premises, shall be presumptive evidence of the facts therein
stated and of the several items and charges in the fire insurance rate then
applicable to the demised premises.

 

9.03         Landlord
or its agents shall not be liable for any injury or damage to persons or
property 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, unless any of the foregoing shall be caused by or due to the
negligence of Landlord, its agents, servants or employees.

 

9.04         Landlord
or its agents shall not be liable for any damage which Tenant may sustain, if
at any time any window of the demised premises is broken or temporarily or
permanently (restricted to windows on a lot line, if permanently) closed,
darkened or bricked up for any reason whatsoever, except only Landlord’s
arbitrary acts if the result is permanent, and 

 

17

 

Tenant shall not be entitled to any
compensation therefor or abatement of rent or to any release from any of Tenant’s
obligations under this Lease, nor shall the same constitute an eviction.

 

9.05         Subject
to the terms of Section 9.08 of this Lease, Tenant shall reimburse
Landlord for all expenses, damages or fines incurred or suffered by Landlord,
by reason of any breach, violation or nonperformance by Tenant, or its agents,
servants or employees, of any covenant or provision of this Lease, or by reason
of damage to persons or property caused by moving property of or for Tenant in
or out of the Building, or by the installation or removal of furniture or other
property of or for Tenant or by reason of or arising out of the negligence or
willful misconduct of Tenant, or its agents, servants or employees, in the use
or occupancy of the demised premises. 
Subject to the provisions of Section 8.02 hereof, where applicable,
Tenant shall have the right, at Tenant’s own cost and expense, to participate
in the defense of any action or proceeding brought against Landlord, and in
negotiations for settlement thereof if, pursuant to this Section 9.05,
Tenant would be obligated to reimburse Landlord for expenses, damages or fines
incurred or suffered by Landlord.

 

9.06         Tenant
shall give Landlord notice in case of fire or accidents in the demised premises
promptly after Tenant is aware of such event.

 

9.07         Tenant
agrees to look solely to Landlord’s estate and interest in the Land and
Building, or the lease of the Building, or of the Land and Building, and the
demised premises, for the satisfaction of any right or remedy of Tenant for the
collection of a judgment (or other judicial process) requiring the payment of
money by Landlord, in the event of any liability by Landlord, and no other
property or assets of Landlord (other than proceeds of any policies of
insurance) and no property of any partner, shareholder or principal of Landlord
shall be subject to levy, execution, attachment, or other enforcement procedure
for the satisfaction of Tenant’s remedies under or with respect to this Lease,
the relationship of Landlord and Tenant hereunder, or Tenant’s use and
occupancy of the demised premises, or any other liability of Landlord to
Tenant.

 

9.08         (a)           Landlord agrees that, if obtainable, it will include in its
fire insurance policies appropriate clauses pursuant to which the insurance
companies (i) waive all right of subrogation against Tenant with respect
to losses payable under such policies and (ii) agree that such policies
shall not be invalidated should the insured waive in writing prior to a loss
any or all right of recovery against any party for losses covered by such
policies.

 

(b)           Tenant
agrees to include in its property insurance policy or policies on its
furniture, furnishings, fixtures and other property removable by Tenant under
the provisions of this Lease appropriate clauses pursuant to which the
insurance company or companies (i) waive the right of subrogation against
Landlord with respect to losses payable under such policy or policies and (ii) agree
that such policy or policies shall not be invalidated should the insured waive
in writing prior to a loss any or all right of recovery against any party for
losses covered by such policy or policies.

 

(c)           Provided
that Landlord’s right of full recovery under its policy or policies aforesaid
is not adversely affected or prejudiced thereby, Landlord hereby waives any and
all right of recovery which it might otherwise have against Tenant, its
servants, agents and 

 

18

 

employees, for loss or damage occurring
to the Building and the fixtures, appurtenances and equipment therein, to the
extent the same is covered by Landlord’s insurance, notwithstanding that such
loss or damage may result from the negligence or fault of Tenant, its servants,
agents or employees.  Provided that
Tenant’s right of full recovery under its aforesaid policy or policies is not
adversely affected or prejudiced thereby, Tenant hereby waives any and all
right of full recovery which it might otherwise have against Landlord, its
servants, agents and employees for loss or damage to, Tenant’s furniture,
furnishings, fixtures and other property removable by Tenant under the
provisions hereof to the extent that the same is covered by Tenant’s insurance,
notwithstanding that such loss or damage may result from the negligence or
fault of Landlord, its servants, agents or employees, or such other tenant and
the servants, agents or employees thereof.

 

(d)           Landlord
and Tenant hereby agree to advise the other promptly if the clauses to be
included in their respective insurance policies pursuant to subdivisions 9.08(a) and
(b) hereof cannot be obtained. 
Landlord and Tenant hereby also agree to notify the other promptly of
any cancellation or change of the terms of any such policy which would affect
such clauses.

 

9.09         Tenant
covenants and agrees to provide on or before the Commencement Date and to keep
in force during the term hereof (i) comprehensive general liability
insurance policy including products, completed operations covering bodily
injury and property damage liability, personal injury and advertising
liability, fire legal liability all in connection with the use, occupancy or
condition of the demised premises and the Building and contractual liability
coverage (covering the liability of Tenant to Landlord by virtue of the
indemnities contained in Section 39.01(i) and (ii) hereof ) in
amounts not less than:

 

$5,000,000, general
aggregate per location

 

$5,000,000, per occurrence
for bodily injury and property damage

 

$5,000,000, personal and
advertising injury

 

$1,000,000, fire legal
liability

 

The above limits
can be provided by the combination of general liability coverage and umbrella
liability coverage.  Such insurance is to
be primary insurance, notwithstanding any insurance maintained by the
indemnified parties.  Landlord reserves
the right to require from time to time, that the above limits be increased by
reasonable amounts.  With respect to the
above insurance, Landlord shall receive, at least ten (10) days prior to
the Commencement Date and at least fifteen (15) days prior to the expiration of
any such policy(ies), a certificate indicating the aforesaid coverage and
including the Landlord, its designees and its mortgagees as additional
insureds.  Such certificate is to contain
provisions that obligate the insurer to notify Landlord, fifteen (15) days in
advance, in the event of cancellation, non-renewal or material change of the coverage.  Such insurance is to be written by an
insurance company or companies satisfactory to Landlord and with a Best’s
rating of at least A-, X and (ii) “All Risk” property insurance, including
the perils of sprinkler leakage, water damage, flood, burglary and collapse, 

 

19

 

covering
the property of Tenant, in an amount equivalent to the insurable value of said
property, defined as the “cost to replace or reconstruct new without deduction
for physical depreciation.”

 

9.10         During the entire term of this Lease, Landlord shall
secure and carry (a) a policy of commercial general liability insurance
covering Landlord on an occurrence basis in an amount not less than $5,000,000
and (b) a causes of loss-special form (formerly “all-risk”) policy of
insurance covering the Building, in an amount and value not less than the full
replacement value of the Building and the improvements thereto.

 

ARTICLE 10

 

DAMAGE BY FIRE OR OTHER CAUSE

 

10.01       If
the Building or the demised premises shall be partially or totally damaged or
destroyed by fire or other cause, then whether or not the damage or destruction
shall have resulted from the fault or neglect of Tenant, or its employees,
agents, or visitors (and if this Lease shall not have been terminated as in
this Article 10 hereinafter provided), Landlord shall repair the damage
and restore and rebuild the Building and/or the demised premises, at its
expense (without limiting the rights of Landlord under any other provisions of
this Lease), with reasonable dispatch after notice to it of the damage or
destruction; provided, however, that Landlord shall not be required to repair
or replace any of Tenant’s property.

 

10.02       If
the Building or the demised premises shall be partially damaged or partially
destroyed by fire or other cause, then unless such fire or damage shall have
resulted from the negligence of Tenant, the rents payable hereunder shall be
abated to the extent that the demised premises shall have been rendered
untenantable or inaccessible for the period from the date of such damage or
destruction to the date the damage shall be repaired or restored.

 

If
the demised premises or a major part thereof shall be totally (which shall be
deemed to include substantially totally) damaged or destroyed or rendered
completely (which shall be deemed to include substantially completely)
untenantable or inaccessible on account of fire or other cause, the rents shall
abate as of the date of the damage or destruction and until Landlord shall
repair, restore and rebuild the Building and the demised premises, provided,
however, that should Tenant reoccupy a portion of the demised premises during
the period the restoration work is taking place and prior to the date that the
same are made completely tenantable, rents allocable to such portion shall be
payable by Tenant from the date of such occupancy.

 

10.03       If
the Building or the demised premises shall be totally damaged or destroyed by
fire or other cause, or if the Building shall be so damaged or destroyed by
fire or other cause (whether or not the demised premises are damaged or
destroyed) as to require a reasonably estimated expenditure of more than forty
(40%) per cent of the full insurable value of the Building immediately prior to
the casualty, then in either such case Landlord may terminate this Lease by
giving Tenant notice to such effect within one hundred twenty (120) days after
the date of the casualty.  In case of any
damage or destruction mentioned in this Article 10, Tenant may terminate
this Lease by notice to Landlord, if Landlord has not completed the making of
the required repairs and restored and rebuilt the Building and the demised
premises within eight (8) 

 

20

 

months from the date of such damage or
destruction (such period may be extended after such date (not exceeding three (3) months)
by a period equal to the aggregate period Landlord may have been delayed in
doing so by adjustment of insurance, labor trouble, governmental controls, act
of God, or any other cause beyond Landlord’s reasonable control).

 

10.04       No
damages, compensation or claim shall be payable by Landlord for inconvenience,
loss of business or annoyance arising from any repair or restoration of any
portion of the demised premises or of the Building pursuant to this Article 10.

 

10.05       Notwithstanding
any of the foregoing provisions of this Article 10, if Landlord or the
lessor of any superior lease or the holder of any superior mortgage shall be
unable to collect all of the insurance proceeds (including rent insurance
proceeds) applicable to damage or destruction of the demised premises or the
Building by fire or other cause, by reason of some action or inaction on the
part of Tenant or any of its employees, agents or contractors, then, without
prejudice to any other remedies which may be available against Tenant, there
shall be no abatement of Tenant’s rents, but the total amount of such rents not
abated (which would otherwise have been abated) shall not exceed the amount of
uncollected insurance proceeds.

 

10.06       Landlord
will not carry separate insurance of any kind on Tenant’s property, and, except
as provided by law or by reason of its breach of any of its obligations
hereunder, shall not be obligated to repair any damage thereto or replace the
same.  Tenant shall maintain insurance on
Tenant’s property, and Landlord shall not be obligated to repair any damage
thereto or replace the same.

 

10.07       The
provisions of this Article 10 shall be considered an express agreement
governing any cause of damage or destruction of the demised premises by fire or
other casualty, and Section 227 of the Real Property Law of the State of
New York, providing for such a 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 such case.

 

ARTICLE 11

 

ASSIGNMENT, MORTGAGING, SUBLETTING,
ETC.

 

11.01       Tenant
shall not (a) assign or otherwise transfer this Lease or the term and
estate hereby granted, (b) sublet the demised premises or any part thereof
or allow the same to be used or occupied by others or in violation of Article 5,
(c) mortgage, pledge or encumber this Lease or the demised premises or any
part thereof in any manner by reason of any act or omission on the part of
Tenant, or (d) advertise, or authorize a broker to advertise, for a
subtenant or an assignee, without, in each instance, obtaining the prior
consent of Landlord, except as otherwise expressly provided in this Article 11,
which consent shall not be unreasonably withheld, conditioned or delayed.  A modification, amendment or extension of a
sublease shall be deemed a sublease.  In
no event shall any subtenant further sublet the space demised to it or assign
its sublease without Landlord’s prior consent.

 

11.02       The
provisions of Section 11.01 hereof shall not apply to transactions with a
corporation into or with which Tenant is merged or consolidated or with an
entity to which 

 

21

 

substantially all of Tenant’s assets
are transferred (provided such merger or transfer of assets is for a good
business purpose and not principally for the purpose of transferring the
leasehold estate created hereby, and provided further, that the assignee after
giving effect to such merger or sale of assets has a net worth at least equal
to or in excess of the greater of (i) the net worth of Tenant immediately
prior to such merger or transfer or (ii) the net worth of Tenant as of the
date hereof) or, if Tenant is a partnership, with a successor partnership.

 

11.03       Any
assignment or transfer, whether made with Landlord’s consent as required by Section 11.01
or without Landlord’s consent pursuant to Section 11.02, shall be made
only if, and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord a recordable agreement, in form and
substance reasonably satisfactory to Landlord, whereby the assignee shall
assume the obligations and performance of this Lease and agree to be bound by
and upon all of the covenants, agreements, terms, provisions and conditions
hereof on the part of Tenant to be performed or observed and whereby the
assignee shall agree that the provisions of Section 11.01 hereof shall,
notwithstanding such an assignment or transfer, continue to be binding upon it
in the future.  Tenant covenants that,
notwithstanding any assignment or transfer, whether or not in violation of the
provisions of this Lease, and notwithstanding the acceptance of fixed annual
rent by Landlord from an assignee or transferee or any other party, Tenant
shall remain fully and primarily liable for the payment of the fixed annual
rent due and to become due under this Lease and for the performance of all of
the covenants, agreements, terms, provisions and conditions of this Lease on
the part of Tenant to be performed or observed.

 

11.04       The
liability of Tenant for the due performance by Tenant of the obligations on its
part to be performed under this Lease, shall not be discharged, released or
impaired in any respect by an agreement or stipulation made by Landlord or any
grantee or assignee of Landlord, by way of mortgage, or otherwise, extending
the time of or modifying any of the obligations contained in this Lease, or by
any waiver or failure of Landlord to enforce any of the obligations on Tenant’s
part to be performed under this Lease, and Tenant shall continue liable
hereunder.  If any such agreement or
modification operates to increase the obligations of a tenant under this Lease,
the liability under this Section 11.04 of the tenant named in the Lease or
any of its successors in interest (unless such party shall have expressly
consented in writing to such agreement or modification), shall continue to be
no greater than if such agreement or modification had not been made.  To charge Tenant named in this Lease and its
successors in interest, no demand or notice of any default shall be required;
Tenant and each of its successors in interest hereby expressly waives any such
demand or notice.

 

11.05       Landlord
shall not unreasonably withhold or delay its consent to an assignment of this
Lease or a subletting of the whole or a part of the demised premises for
substantially the remainder of the term of this Lease, provided:

 

(a)           Tenant
shall furnish Landlord with the name and business address of the proposed subtenant
or assignee, information with respect to the nature and character of the
proposed subtenant’s or assignee’s business, or activities, and current
financial information with respect to net worth, credit and financial
responsibility as are reasonably satisfactory to Landlord, and an executed
counterpart of the sublease or assignment agreement;

 

22

 

(b)           The
proposed subtenant or assignee is a party whose financial net worth, credit and
financial responsibility is, considering the responsibilities involved,
reasonably satisfactory to Landlord;

 

(c)           The
nature and character of the proposed subtenant or assignee, its business or
activities and intended use of the demised premises is, in Landlord’s
reasonable judgment, in keeping with the standards of the Building and the
floor or floors on which the demised premises are located and do not violate
any negative covenant as to use contained in this Lease and will not violate
any negative covenant as to use contained in any other lease of space in the
Building about which Tenant has been informed following its request to Landlord
for such information;

 

(d)           The
proposed subtenant or assignee is not then an occupant of any part of the
Building or a party who dealt with Landlord or Landlord’s agent (directly or
through a broker) with respect to space in the Building during the 12 months
immediately preceding Tenant’s request for Landlord’s consent;

 

(e)           All
costs incurred with respect to providing reasonably appropriate means of
ingress and egress from the sublet space or to separate the sublet space from
the remainder of the demised premises shall, subject to the provisions of Article 6
with respect to alterations, installations, additions or improvements, be borne
by Tenant;

 

(f)            Each
sublease shall specifically state that (i) it is subject to all the terms,
covenants, agreements, provisions, and conditions of this Lease, (ii) the
subtenant or assignee, as the case may be, will not have the right to a further
assignment thereof or sublease or assignment thereunder, or to allow the
demised premises to be used by others, without the consent of Landlord in each
instance;

 

(g)           Tenant
shall together with requesting Landlord’s consent hereunder, have paid Landlord
any reasonable costs incurred by Landlord to review the proposed assignment or
subletting including reasonable attorneys fees incurred by Landlord which sum
shall be payable irregardless whether Landlord grants or withholds its approval
or exercises its rights pursuant to Section 11.06 hereof;

 

(h)           Tenant
shall have complied with the provisions in Section 11.06 and Landlord
shall not have made any of the elections provided for in Section 11.06;

 

(i)            The
proposed subtenant or assignee is not (i) a bank trust company, safe
deposit business, savings and loan association or loan company; (ii) an
employment or recruitment agency; (iii) a school, college, university or
educational institution whether or not for profit; (iv) a government or
any subdivision or agency thereof; (v) an entity engaged in the business
of providing office space within the demised premises for occupancy by others;

 

(j)            Tenant
shall have granted to Landlord or its leasing agent, at Landlord’s election,
the exclusive right to sublease the demised premises or such portion thereof as
Tenant proposes to sublet, or to assign this Lease as the case may be;

 

(k)           In
no event shall Tenant advertise or list with brokers at a rental rate less than
that at which Landlord is offering to lease comparable space in the Building;
In the case of a 

 

23

 

subletting of a portion of the demised
premises, the portion of so sublet shall be regular in shape and suitable for
normal renting purposes and provided that at no time shall the demised premises
be occupied by more than two (2) entities (including Tenant).

 

11.06      (a)            Should
Tenant agree to assign this Lease, other than by an assignment contemplated by Section 11.02,
Tenant shall as soon as that agreement is consummated, but no less than forty
five (45) days prior to the effective date of the contemplated assignment,
deliver to Landlord an executed counterpart of such agreement, and all
ancillary agreements with the proposed assignee, and Landlord shall than have
the right to elect, by notifying Tenant within twenty (20) days of such
delivery, to (i) terminate this Lease, as of such effective date as if it
were the Expiration Date set forth in this Lease or (ii) accept an
assignment of this Lease from Tenant, and Tenant shall then promptly execute
and deliver to Landlord, or Landlord’s designee if so elected by Landlord, in
form reasonably satisfactory to Landlord’s counsel, an assignment which shall
be effective as of such effective date.

 

(b)           In
the event that this Lease shall be assigned to Landlord or Landlord’s designee
or if the demised premises shall be sublet to Landlord or Landlord’s designee
pursuant to this Section 11.06 the provisions of any such sublease or
assignment and the obligations of Landlord and the rights of Tenant with
respect thereto shall not be binding upon or otherwise affect the rights of any
holder of a superior mortgage or of a superior lease unless such holder shall
elect by written notice to Tenant to succeed to the position of Landlord or its
designee, as the case may be, thereunder.

 

(c)           Should
Tenant agree to sublet the demised premises or any portion thereof, other than
by a sublease contemplated by Section 11.02, Tenant shall, as soon as that
agreement is consummated, but no less than forty five (45) days prior to the
effective date of the contemplated sublease, deliver to Landlord, an executed
counterpart of the proposed sublease and all ancillary agreements with the
proposed sublessee, and Landlord shall then have the right to elect, by notifying
Tenant within twenty (20) days of such delivery, to (i) terminate this
Lease as to the portion of the demised premises affected by such subletting or
as to the entire demised premises in the case of a subletting thereof, as of
such effective date, (ii) in the case of a proposed subletting of the
entire demised premises accept an assignment of this Lease from Tenant, and
Tenant shall then promptly execute and deliver to Landlord, or Landlord’s
designee if so elected by Landlord, in form reasonably satisfactory to Landlord’s
counsel, an assignment which shall be effective as of such effective date, (iii) accept
a sublease from Tenant of the portion of the demised premises affected by such
proposed subletting or the entire demised premises in the case of a proposed
subletting thereof, and Tenant shall then promptly execute and deliver a
sublease to Landlord, or Landlord’s designee if so elected by Landlord, for the
remainder of the demised term less one day, commencing with such effective
date, at (x) the rental terms reflected in the proposed sublease or (y) the
rental terms contained in this Lease on a per rentable square foot basis, as
elected by Landlord in such notice.

 

(d)           If
Landlord should elect to have Tenant execute and deliver a sublease to Landlord
pursuant to any of the provisions of this Section 11.06, said sublease
shall be in a form reasonably satisfactory to Landlord’s counsel and on all the
terms contained in this Lease, except that:

 

24

 

(i)            The rental terms, if elected
by Landlord, may be either as provided in item (x) or item (y) of
subsection 11.06(c) hereof;

 

(ii)           The sublease shall not
provide for any work to be done for the subtenant or for any initial rent
concessions or contain provisions inapplicable to a sublease, except that in
the case of a subletting of a portion of the demised premises Tenant shall
reimburse subtenant for the cost of erecting such demising walls as are
necessary to separate the subleased premises from the remainder of the demised
premises and to provide access thereto and to core bathrooms,

 

(iii)          The subtenant thereunder
shall have the right to underlet the subleased premises, in whole or in part,
without Tenant’s consent,

 

(iv)          The subtenant thereunder
shall have the right to make, or cause to be made, any changes, alterations,
decorations, additions and improvements that subtenant may desire or authorize,

 

(v)           Such sublease shall
expressly negate any intention that any estate created by or under such
sublease be merged with any other estate held by either of the parties thereto,

 

(vi)          Any consent required of
Tenant, as lessor under that sublease, shall be deemed granted if consent with
respect thereto is granted by Landlord,

 

(vii)         There shall be no limitation
as to the use of the sublet premises by the subtenant thereunder,

 

(viii)        Any failure of the subtenant
thereunder to comply with the provisions of said sublease, other than with
respect to the payment of rent to Tenant, shall not constitute a default
thereunder or hereunder if Landlord has consented to such noncompliance, and

 

(ix)           Such sublease shall provide
that Tenant’s obligations with respect to vacating the demised premises and
removing any changes, alterations, decorations, additions or improvements made in
the subleased premises shall be limited to those which accrued and related to
such as were made prior to the effective date of the sublease.

 

(e)           If
pursuant to the exercise of any of Landlord’s options pursuant to Section 11.06
hereof this Lease is terminated as to only a portion of the demised premises,
then the fixed annual rent payable hereunder and the additional rent payable
pursuant to Article 3 hereof shall be adjusted in proportion to the
portion of the demised premises affected by such termination.

 

(f)            If
Landlord shall give its consent to any assignment of this Lease or to any
sublease, Tenant shall in consideration therefor, pay to Landlord, as
additional rent:

 

(i)            in the case of an
assignment, an amount equal to one-half (1⁄2) of 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 which are located in 

 

25

 

the demised premises, less,
in the case of a sale of any of the foregoing other than leasehold
improvements, the then net unamortized or undepreciated cost thereof determined
on the basis of Tenant’s federal income tax returns) after deduction of Tenant’s
expenses incurred in connection with such assignment; and

 

(ii)           in the case of a sublease,
one-half (1⁄2) of any rents, additional charge or other consideration payable
under the sublease to Tenant by the subtenant which is in excess of the fixed
annual 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 which are located in the
demised premises, less, in the case of the sale of any of foregoing other than
leasehold improvements, the then net unamortized or undepreciated cost thereof
determined on the basis of Tenant’s federal income tax returns).

 

The sums payable
under this Section 11.06(f) shall be paid to Landlord as and when
paid by the subtenant or assignee to Tenant.

 

11.07       Landlord’s
consent to any sublease or assignment shall not be deemed or construed to
modify, amend or affect the terms and provisions of this Lease, or Tenant’s
obligations hereunder, which shall continue to apply, as if the sublease or
assignment had not been made. 
Notwithstanding any assignment or sublease, Tenant shall remain fully
liable for the payment of fixed annual rent and additional rents and for the
other obligations of this Lease on the part of Tenant to be performed or
observed.  In the event that Tenant
defaults in the payment of any rent, Landlord is authorized to collect any
rents due or accruing from any assignee, subtenant or other occupant of the
demised premises and to apply the net amounts collected to the fixed annual
rent and additional rent reserved herein, and the receipt of any such amounts
by Landlord from an assignee or subtenant, or other occupant of any part of the
demised premises, shall not be deemed or construed as releasing Tenant from
Tenant’s obligations hereunder or the acceptance of that party as a direct
tenant.

 

ARTICLE 12

 

CERTIFICATE OF OCCUPANCY

 

12.01       Tenant
will not at any time use or occupy the demised premises in violation of the
Certificate of Occupancy issued for the Building.  Landlord represents and warrants that the
existing Certificate of Occupancy for the demised premises permits the use of
the demised premises for executive and general offices.

 

ARTICLE 13

 

ADJACENT EXCAVATION; SHORING

 

13.01       If
an excavation or other substructure work shall be made upon land adjacent to
the demised 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 demised premises for the purposes of doing such work as shall be
necessary to preserve the wall of or the Building of 

 

26

 

which the demised premises form a part
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.

 

ARTICLE 14

 

CONDEMNATION

 

14.01       In
the event that the whole of the demised premises shall be lawfully condemned or
taken in any manner for any public or quasi-public use, this Lease and the term
and estate hereby granted shall forthwith cease and terminate as of the date of
vesting of title.  In the event that only
a part of the demised premises shall be so condemned or taken, then, effective
as of the date of vesting of title, the fixed annual rent under Article 1
hereunder and additional rents under Article 3 hereunder shall be abated
in an amount thereof apportioned according to the area of the demised premises
so condemned or taken.  In the event that
only a part of the Building shall be so condemned or taken, then (a) Landlord
(whether or not the demised premises be affected) may, at Landlord’s option,
terminate this Lease and the term and estate hereby granted as of the date of
such vesting of title by notifying Tenant in writing of such termination within
sixty (60) days following the date on which Landlord shall have received notice
of vesting of title, or (b) if such condemnation or taking shall be of a
substantial part of the demised premises or of a substantial part of the means
of access thereto, Tenant may, at Tenant’s option, by delivery of notice in
writing to Landlord within thirty (30) days following the date on which Tenant
shall have received notice of vesting of title, terminate this Lease and the
term and estate hereby granted as of the date of vesting of title, or (c) if
neither Landlord nor Tenant elects to terminate this Lease, as aforesaid, this
Lease shall be and remain unaffected by such condemnation or taking, except
that the fixed annual rent payable under Article 1 and additional rents
payable under Article 3 shall be abated to the extent hereinbefore
provided in this Article 14.  In the
event that only a part of the demised premises shall be so condemned or taken
and this Lease and the term and estate hereby granted with respect to the
remaining portion of the demised premises are not terminated as hereinbefore
provided, Landlord will, with reasonable diligence and at its expense, restore
the remaining portion of the demised premises as nearly as practicable to the
same condition as it was in prior to such condemnation or taking.

 

14.02       In
the event of its termination in any of the cases hereinbefore provided, this
Lease and the term and estate hereby granted shall expire as of the date of
such termination with the same effect as if that were the Expiration Date, and
the fixed annual rent and additional rents payable hereunder shall be
apportioned as of such date.

 

14.03       In
the event of any condemnation or taking hereinbefore mentioned of all or a part
of the Building, Landlord shall be entitled to receive the entire award in the
condemnation proceeding, including any award made for the value of the estate
vested by this Lease in Tenant, and Tenant hereby expressly assigns to Landlord
any and all right, title and interest of Tenant now or hereafter arising in or
to any such award or any part thereof, and Tenant shall be entitled to receive
no part of such award.

 

27

 

14.04       It
is expressly understood and agreed that the provisions of this Article 14
shall not be applicable to any condemnation or taking for governmental
occupancy for a limited period.

 

14.05       In
the event of any taking of less than the whole of the Building which does not
result in a termination of this Lease, or in the event of a taking for a
temporary use or occupancy of all or any part of the demised premises which
does not result in a termination of this Lease, Landlord, at its expense, and
whether or not any award or awards shall be sufficient for the purpose, shall
proceed with reasonable diligence to repair, alter and restore the remaining
parts of the Building and the demised premises to substantially their former
condition to the extent that the same may be feasible and so as to constitute a
complete and tenantable Building and demised premises.

 

14.06       In
the event any part of the demised premises be taken to effect compliance with
any law or requirement of public authority other than in the manner hereinabove
provided in this Article 14, then, (i) if such compliance is the
obligation of Tenant under this Lease, Tenant shall not be entitled to any
diminution or abatement of rent or other compensation from Landlord therefor,
but (ii) if such compliance is the obligation of Landlord under this
Lease, the fixed annual rent hereunder shall be reduced and additional rents
under Article 3 shall be adjusted in the same manner as is provided in Section 14.01
according to the reduction in rentable area of the demised premises resulting
from such taking.

 

ARTICLE 15

 

ACCESS TO DEMISED PREMISES; CHANGES

 

15.01       Tenant
shall permit Landlord to erect, use and maintain pipes, ducts and conduits in
and through the demised premises, provided the same are installed adjacent to
or concealed behind walls and ceilings of the demised premises.  Landlord shall to the extent reasonably
practicable install such pipes, ducts and conduits by such methods and at such
locations as will not materially interfere with or impair Tenant’s layout or
use of the demised premises.  Landlord or
its agents or designees shall have the right, upon notice (except in the case
of emergency) to Tenant or any authorized employee of Tenant at the demised
premises, to enter the demised premises, at reasonable times during business
hours, for the making of such repairs or alterations as Landlord may deem
necessary for the Building or which Landlord shall be required to or shall have
the right to make by the provisions of this Lease or any other lease in the
Building and, subject to the foregoing, shall also have the right to enter the
demised premises for the purpose of inspecting them or exhibiting them to
prospective purchasers or lessees of the entire Building or to prospective
mortgagees of the fee or of the Landlord’s interest in the property of which
the demised premises are a part or to prospective assignees of any such
mortgages or to the holder of any mortgage on the Landlord’s interest in the
property, its agents or designees. 
Landlord shall be allowed to take all material into and upon the demised
premises that may be required for the repairs or alterations above mentioned as
the same is required for such purpose, without the same constituting an
eviction of Tenant in whole or in part, and the rent reserved shall in no wise
abate while said repairs or alterations are being made by reason of loss or
interruption of the business of Tenant because of the prosecution of any such
work.  Landlord shall exercise reasonable
diligence so as to minimize the disturbance but nothing 

 

28

 

contained herein shall be deemed to
require Landlord to perform the same on an overtime or premium pay basis.  Tenant agrees that Landlord shall have the
right at any time to install in the Building on the insides of the windows
thereof, a film to reduce the usage of energy in the Building.  Tenant agrees that the foregoing provisions
of this Section shall apply to the installation, maintenance or
replacement of such film.  Any notice to
Tenant required pursuant to this Article 15 may be given orally.

 

15.02       Landlord
reserves the right, without the same constituting an eviction and without
incurring liability to Tenant therefor, to change the arrangement and/or
location of public entrances, passageways, doors, doorways, corridors,
elevators, stairways, toilets or other public parts of the Building; provided,
however, that access to the Building shall not be cut off and that there shall
be no unreasonable obstruction of access to the demised premises or
unreasonable interference with the use or enjoyment thereof.

 

15.03       Landlord
reserves the right to light from time to time all or any portion of the demised
premises at night for display purposes without paying Tenant therefor.

 

15.04       Landlord
may, during the (12) months prior to expiration of the term of this Lease,
exhibit the demised premises to prospective tenants.

 

15.05       If
Tenant shall not be personally present to open and permit an entry into the
demised premises at any time when for any reason an entry therein shall be
urgently necessary by reason of fire or other emergency, Landlord or Landlord’s
agents 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, provided Landlord
promptly repairs any damage caused by Landlord in its exercise of the foregoing
rights.

 

ARTICLE 16

 

CONDITIONS OF LIMITATION

 

16.01       This
Lease and the term and estate hereby granted are subject to the limitation that
whenever Tenant shall make an assignment of the property of Tenant for the
benefit of creditors, or shall file a voluntary petition under any bankruptcy
or insolvency law or any involuntary petition alleging an act of bankruptcy or
insolvency shall be filed against Tenant under any bankruptcy or insolvency
law, or whenever a petition shall be filed by or against Tenant under the
reorganization provisions of the United States Bankruptcy Act or under the
provisions of any law of like import, or whenever a petition shall be filed by
Tenant under the arrangement provisions of the United States Bankruptcy Act or
under the provisions of any law of like import, or whenever a permanent receiver
of Tenant or of or for the property of Tenant shall be appointed, then,
Landlord may, (a) at any time after receipt of such notice of the
occurrence of any such event, or (b) if such event occurs without the
acquiescence of Tenant, at any time after the event continues for thirty (30)
days, give Tenant a notice of intention to end the term of this Lease at the
expiration of five (5) days from the date of service of such notice of
intention, and upon the expiration of said five (5) day period, this Lease
and the term and estate hereby granted, whether or not the term shall
theretofore have commenced, shall terminate with 

 

29

 

the same effect as if that day were the
Expiration Date, but Tenant shall remain liable for damages as provided in Article 18.

 

16.02       This
Lease and the term and estate hereby granted are subject to further limitation
as follows:

 

(a)           whenever
Tenant shall default in the payment of any installment of fixed annual rent, or
in the payment of any additional rent or any other charge payable by Tenant to
Landlord, on any day upon which same ought to be paid, and such default shall
continue for seven (7) days after Landlord shall have given Tenant a
notice specifying such default, or

 

(b)           whenever
Tenant shall do or permit anything to be done, whether by action or inaction,
contrary to any of Tenant’s obligations hereunder, and if such situation shall
continue and shall not be remedied by Tenant within twenty2fifteen (15) days
after Landlord shall have given to Tenant a notice specifying the same, or, in
the case of a happening or default which cannot with due diligence be cured
within a period of fifteen (15) days and the continuation of which for the
period required for cure will not subject Landlord to the risk of criminal
liability (as more particularly described in Article 8 hereof) or
termination of any superior lease or foreclosure of any superior mortgage, if
Tenant shall not, (i) within said fifteen (15) day period advise Landlord
of Tenant’s intention to duly institute all steps necessary to remedy such
situation, (ii) duly institute within said fifteen (15) day period, and
thereafter diligently and continuously prosecute to completion all steps
necessary to remedy the same and (iii) complete such remedy within such
time after the date of the giving of said notice of Landlord as shall
reasonably be necessary, or

 

(c)           whenever
any event shall occur or any contingency shall arise whereby this Lease or the
estate hereby granted or the unexpired balance of the term hereof would, by
operation of law or otherwise, devolve upon or pass to any person, firm or
corporation other than Tenant, except as expressly permitted by Article 11,
or

 

(d)           whenever
Tenant shall abandon the demised premises (unless as a result of a casualty)
(for purposes of the foregoing “abandon” shall mean Tenant vacates the demised
premises for more than thirty (30) days and fails to perform its obligations
under this Lease), or

 

(e)           whenever
in case any other lease held by Tenant from Landlord shall expire and terminate
(whether or not the term thereof shall then have commenced) as a result of the
default of Tenant thereunder or of the occurrence of an event as therein
provided (other than by expiration of the fixed term thereof or pursuant to a
cancellation or termination option therein contained), or

 

(f)            whenever
a default of the kind set forth in Subsection 16.02(a), (b), or (c) hereof
shall occur and if either (i) Tenant shall cure, after notice, such
default within any applicable grace period or (ii) Landlord shall, in its
sole discretion, permit Tenant to cure such default after the applicable grace
period has expired, and if a similar default shall occur more than twice within
the next three hundred sixty-five (365) days, whether or not such similar
default or defaults is or are cured within the applicable grace period

 

30

 

then in any of said cases
set forth in the foregoing Subsections (a), (b), (c), (d), (e), and (f) 
Landlord may give to Tenant a notice of intention to end the term of this Lease
at the expiration of three (3) days from the date of the service of such
notice of intention and upon the expiration of said three (3) days this
Lease and the term and estate hereby granted, whether or not the term shall
theretofore have commenced, shall terminate with the same effect as if that day
were the Expiration Date, but Tenant shall remain liable for damages as
provided in Article 18.

 

ARTICLE 17

 

RE-ENTRY BY
LANDLORD; INJUNCTION

 

17.01              If
Tenant shall default in the payment of any installment of fixed annual rent, or
of any additional rent, on any date upon which the same ought to be paid, and
if such default shall continue for seven (7) days after Landlord shall
have given to Tenant a notice specifying such default, or if this Lease shall
expire as in Article 16 provided, Landlord or Landlord’s agents and
employees may immediately or at any time thereafter re-enter the demised
premises, or any part thereof, either by summary dispossess proceedings or by
any suitable action or proceeding at law, or by force or otherwise, without
being liable to indictment, prosecution or damages therefrom, to the end that
Landlord may have, hold and enjoy the demised premises again as and of its
first estate and interest therein.  The
word re-enter, as herein used, is not restricted to its technical legal
meaning.  In the event of any termination
of this Lease under the provisions of Article 16 or if Landlord shall
re-enter the demised premises under the provisions of this Article 17 or
in the event of the termination of this Lease, or of re-entry, by or under any
summary dispossess or other proceedings or action or any provision of law by
reason of default hereunder on the part of Tenant, Tenant shall thereupon pay
to Landlord the fixed annual rent and additional rent payable by Tenant to
Landlord up to the time of such termination of this Lease, or of such recovery
of possession of the demised premises by Landlord, as the case may be, and
shall also pay to Landlord damages as provided in Article 18.

 

17.02              In
the event of a breach or threatened breach of Tenant of any of its obligations
under this Lease, Landlord shall also have the right of injunction.  The special remedies to which Landlord may
resort hereunder are cumulative and are not intended to be exclusive of any
other remedies or means of redress to which Landlord may lawfully be entitled
at any time and Landlord may invoke any remedy allowed at law or in equity as
if specific remedies were not provided for herein.

 

17.03              If
this Lease shall terminate under the provisions of Article 16, or if
Landlord shall re-enter the demised premises under the provisions of this Article 17,
or in the event of the termination of this Lease, or of re-entry, by or under
any summary dispossess or other proceeding or action or any provision of law by
reason of default hereunder on the part of Tenant, Landlord shall be entitled
to retain all moneys, if any, paid by Tenant to Landlord, whether as advance
rent, security or otherwise, but such moneys shall be credited by Landlord
against any fixed annual rent or additional rent due from Tenant at the time of
such termination or re-entry or, at Landlord’s option against any damages
payable by Tenant under Articles 16 and 18 or pursuant to law.

 

31

 

17.04              Tenant
hereby expressly waives any and all rights of redemption granted by or under
any present or future laws in the event of Tenant being evicted or dispossessed
for any cause, or in the event of Landlord obtaining possession of the demised
premises, by reason of the violation by Tenant of any of the covenants and
conditions of this Lease or otherwise.

 

ARTICLE 18

 

DAMAGES

 

18.01              If
this Lease is terminated under the provisions of Article 16, or if
Landlord shall re-enter the demised premises under the provisions of Article 17,
or in the event of the termination of this Lease, or of re-entry, by or under
any summary dispossess or other proceeding or action or any provision of law by
reason of default hereunder on the part of Tenant, Tenant shall pay to Landlord
as damages, at the election of Landlord, either:

 

(a)                  a
sum which at the time of such termination of this Lease or at the time of any
such re-entry by Landlord, as the case may be, represents the then net present
value of the excess (discounted at an annual rate of 8%), if any, of

 

(1)                the aggregate of the fixed
annual rent and the additional rent payable hereunder which would have been
payable by Tenant (conclusively presuming that additional rent on account of
increases in Taxes shall increase at the average of the rates of increase
thereof previously experienced by Landlord during the period (not to exceed
three (3) years) prior to such termination) for the period commencing with
such earlier termination of this Lease or the date of any such re-entry, as the
case may be, and ending with the Expiration Date, had this Lease not so
terminated or had Landlord not so re-entered the demised premises, over

 

(2)                the aggregate fair rental value
of the demised premises for the same period, or

 

(b)                 sums
equal to the fixed annual rent and the additional rent payable hereunder which
would have been payable by Tenant had this Lease not so terminated, or had
Landlord not so re-entered the demised premises, payable upon the due dates
therefor specified herein following such termination or such re-entry and until
the Expiration Date; provided, however, that if Landlord shall re-let the
demised premises during said period, Landlord shall credit Tenant with the net
rents received by Landlord from such re-letting, such net rents to be
determined by first deducting from the gross rents as and when received by
Landlord from such re-letting the expenses incurred or paid by Landlord in
terminating this Lease or in re-entering the demised premises and in securing
possession thereof, as well as the commercially reasonable expenses of re-letting,
including altering and preparing the demised premises for new tenants, brokers’
commissions, and all other expenses properly chargeable against the demised
premises and the rental thereof; it being understood that any such re-letting
may be for a period shorter or longer than the remaining term of this Lease;
but in no event shall Tenant be entitled to receive any excess of such net
rents over the sums payable by Tenant to Landlord hereunder, or shall Tenant be
entitled in any suit for the collection of damages pursuant to this subsection
to a credit in respect of any net rents from a re-letting, except to the extent
that such net rents are actually received by Landlord.  If the demised premises or any part thereof
should be re-let in 

 

32

 

combination with other space, then proper
apportionment on a square foot basis shall be made of the rent received from
such re-letting and of the expenses of re-letting.

 

If the demised
premises or any part thereof be re-let by Landlord in any arms-length
transaction for the unexpired portion of the term of this Lease, or any part
thereof, before presentation of proof of such damages to any court, commission
or tribunal, the amount of rent reserved upon such re-letting shall, prima
facie, be the fair and reasonable rental value for the demised premises, or
part thereof, so re-let during the term of the re-letting.

 

18.02             Suit
or suits for the recovery of such damages, or any installments thereof, may be
brought by Landlord from time to time at its election, and nothing contained
herein shall be deemed to require Landlord to postpone suit until the date when
the term of this Lease would have expired if it had not been so terminated
under the provisions of Article 16, or under any provision of law, or had
Landlord not re-entered the demised premises. 
Nothing herein contained shall be construed to limit or preclude
recovery by Landlord against Tenant of any sums or damages to which, in
addition to the damages particularly provided above, Landlord may lawfully be
entitled by reason of any default hereunder on the part of Tenant.  Nothing herein contained shall be construed
to limit or prejudice the right of Landlord to prove for and obtain as
liquidated damages by reason of the termination of this Lease or re-entry of
the demised premises for the default of Tenant under this Lease, 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 such damages are to be
proved whether or not such amount be greater, equal to, or less than any of the
sums referred to in Section 18.01.

 

ARTICLE 19

 

LANDLORD’S RIGHT TO
PERFORM TENANT’S OBLIGATIONS

 

19.01              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, (a) Landlord may
remedy such default for the account of Tenant, immediately and without notice
in case of emergency which poses a threat of damage to person or property, or
in any other case only provided that Tenant shall fail to remedy such default
with all reasonable dispatch after Landlord shall have notified Tenant in
writing of such default and the applicable grace period for curing such default
shall have expired; and (b) if Landlord makes any reasonable expenditures
or incurs any obligations for the payment of money in connection with such
default including, but not limited to, reasonable attorneys’ fees in
instituting, prosecuting or defending any action or proceeding, such sums or
obligations incurred, with interest at the Interest Rate, shall be deemed to be
additional rent hereunder and shall be paid by Tenant to Landlord upon
rendition of a bill to Tenant therefor.

 

ARTICLE 20

 

QUIET ENJOYMENT

 

20.01              Landlord
covenants and agrees that subject to the terms and provisions of this Lease,
if, and so long as, Tenant keeps and performs each and every covenant,
agreement, term, 

 

33

 

provision and condition herein contained on
the part or on behalf of Tenant to be kept or performed, then Tenant’s right
under this Lease shall not be cut off or ended before the expiration of the
term of this Lease and Landlord shall defend Tenant against any claim of
superior title arising by, from or under Landlord, subject however, to:  (i) the obligations of this Lease, and (ii) as
provided in Article 25 hereof with respect to ground and underlying leases
and mortgages which affect this Lease.

 

ARTICLE 21

 

SERVICES AND
EQUIPMENT

 

21.01              Landlord
shall, at its cost and expense:

 

(a)                   Provide operating elevator
facilities on Business Days (as hereinafter defined in Article 22) during “regular
hours” (that is between the hours of 8:00 A.M. and 6:00 P.M.) and
shall have at least one elevator subject to call at all other times.  At Landlord’s option, the elevators shall be
operated by automatic control or manual control, or by a combination of both of
such methods.

 

(b)                   Heat shall be provided, as
may be required for comfortable occupancy of the demised premises during
regular hours on Business Days and from 8:00 A.M. through 1:00 P.M.
on Saturdays during the heating season. 
If Tenant shall require Heat service during hours other than regular
hours or on days other than Business Days (hereinafter called “After Hours”),
Landlord shall furnish such After Hours Heat service upon reasonable advance
notice from Tenant, and Tenant shall pay, within 15 days of demand, Landlord’s
established charges therefore.

 

(c)                   Landlord shall furnish to the
Demised Premises year-round air conditioning (heated or cooled as may be
required seasonally for comfortable occupancy during regular hours on Business
Days and from 8:00 A.M. through 1:00 P.M. on Saturdays during the
cooling season. Tenant shall abide by all reasonable regulations which Landlord
promulgates for the proper functioning and protection of the HVAC system and
for compliance with applicable governmental energy regulations and guidelines.
Any modification of the HVAC system necessitated by any arrangement of
partitioning in the Demised Premises which interferes with the normal operation
of such system shall be made by Landlord at Tenant’s expense.

 

(d)                   INTENTIONALLY OMITTED.

 

(e)                   Provide cleaning and
janitorial services on Business Days. 
Tenant shall pay to Landlord on demand the costs incurred by Landlord
for (a) extra cleaning work in the demised premises required because of (i) misuse
or neglect on the part of Tenant or its employees or visitors, (ii) use of
portions of the demised premises for preparation, serving or consumption of
food or beverages, data processing, or reproducing operations, private
lavatories or toilets or other special purposes requiring greater or more
difficult cleaning work than office areas, (iii) unusual quantity of
interior glass surfaces, (iv) non-building standard materials or finishes
installed by Tenant or at its request and (b) removal from the demised
premises and the Building of so much of any refuse and rubbish of Tenant as
shall exceed that ordinarily 

 

34

 

accumulated daily in the routine of business
office occupancy.  Landlord, its cleaning
contractor and their employees shall have After Hours access to the demised
premises and the free use of light, power and water in the demised premises as
reasonably required for the purpose of cleaning the demised premises in
accordance with Landlord’s obligations hereunder.

 

(f)                    Furnish warm and cold water
for lavatory and drinking and office cleaning purposes.  If Tenant requires, uses or consumes water
for any other purposes, Tenant agrees to Landlord installing a meter or meters
or other means to measure Tenant’s water consumption, and Tenant further agrees
to reimburse Landlord for the cost of the meter or meters and the installation
thereof, and to pay for the maintenance of said meter equipment and/or to pay
Landlord’s cost of other means of measuring such water consumption by
Tenant.  Tenant shall reimburse Landlord
for the cost of all water consumed, as measured by said meter or meters or as
otherwise measured, including sewer rents.

 

21.02              Any
use of the demised premises for a purpose other than a permitted hereunder, or
any part thereof, or rearrangement of partitioning by Tenant in a manner that
interferes with normal operation of the heat and air-conditioning systems
(hereinafter called the systems) servicing the same, may require changes in
such systems.  Such changes, so occasioned,
shall be made by Tenant, at its expense, subject to Landlord’s prior written
approval of such changes, which approval may be withheld for any reason.  Tenant shall not make any change, alteration,
addition or substitution to the air-conditioning system without Landlord’s
prior written approval, which may be withheld for any reason.

 

21.03              INTENTIONALLY
OMITTED.

 

21.04              Landlord
reserves the right without any liability whatsoever, or abatement of fixed
annual rent or additional rent (except as provided below), to stop the heating,
air-conditioning, elevator, plumbing, electric and other systems when necessary
by reason of accident or emergency or for repairs, alterations, replacements or
improvements.  Except in case of
emergency, Landlord shall provide at least 24-hours advance written notice of
any such systems and Landlord shall use reasonable efforts to exercise the
rights under this Section at such times and in such manner as to minimize
interference with Tenant’s operations. 
Notwithstanding anything in this Lease to the contrary, if such stoppage arises
as a result of gross negligence, willful misconduct or breach of this Lease on
the part of Landlord or any of Landlord’s agents, contractors or employees and
Tenant is unable to use all or a portion of the demised premises for its business
purposes for a period of fifteen (15) days, the fixed rent and additional rent
due hereunder shall abate until Tenant is again able to use the demised
premises for its business purposes.

 

21.05              INTENTIONALLY
OMITTED.

 

21.06              Tenant
agrees to employ such office maintenance contractors as Landlord may from time
to time designate, for all waxing, polishing, lamp replacement, cleaning and
maintenance work in the demised premises, provided that the quality thereof and
the charges therefor are reasonably comparable to that of other
contractors.  Tenant shall not employ any
other contractor without Landlord’s prior written consent.

 

35

 

21.07              Landlord
will (i) maintain listings on the Building directory of the name of
Tenant, and the name of any employees of Tenant provided the total number of
such listings shall not exceed Tenant’s Proportionate Share of the available
spaces, and (ii) provide building standard entry signage identifying
Tenant at the entry to the demised premises. 
The listing of any name other than that of Tenant on the Building
directory shall not operate to vest any right or interest in this Lease or in
the demised premises or be deemed to be the written consent of Landlord to the
occupancy of any portion of the demised premises by such person, it being
expressly understood that any such listing is a privilege extended by Landlord
revocable at will by written notice to Tenant.

 

21.08              Landlord
shall be responsible for the maintenance, repair and replacement of the
structure of the Building, including, without limitation, the foundation,
exterior walls, floor slabs, roof, drainage system, and other structural
elements of the Building, any lobbies, common corridors and other areas of the
Building, the Building facilities, mechanical systems and equipment, and any
other improvements, facilities or equipment within the Building which are not
exclusively the responsibility of tenants of the Building, such that the same
are kept in good and operational condition and in compliance with Legal
Requirements;

 

21.09              Landlord
shall provide standard security guard service for the Building with 24-hour
on-site lobby attendant stationed in the main lobby.

 

21.10              Landlord
will not be required to furnish any other services, except as otherwise
provided in this Lease.

 

ARTICLE 22

 

DEFINITIONS

 

22.01              The
term “Landlord” as used in this Lease means only the owner, or the mortgagee in
possession, for the time being of the Land and Building (or the owner of a
lease of the Building or of the Land and Building), so that in the event of any
transfer of title to said Land and Building or said lease, or in the event of a
lease of the Building, or of the Land and Building, upon notification to Tenant
of such transfer or lease the said transferor Landlord shall be and hereby is
entirely freed and relieved of all future covenants, obligations and
liabilities of Landlord hereunder, and it shall be deemed and construed as a
covenant running with the land without further agreement between the parties or
their successors in interest, or between the parties and the transferee of
title to said Land and Building or said lease, or the said lessee of the
Building, or of the Land and Building, that the transferee or the lessee has
assumed and agreed to carry out any and all such covenants, obligations and
liabilities of Landlord hereunder.

 

22.02              The
term “Business Days” as used in this Lease shall exclude Saturdays, Sundays and
all days observed by the Federal, State or local government as legal holidays
as well as all other days recognized as holidays under applicable union
contracts.

 

22.03              “Interest
Rate” shall mean a rate per annum equal to the lesser of (a) 2% above the
commercial lending rate announced from time to time by JP Morgan Chase Bank
(New York, 

 

36

 

New York), as its prime rate for ninety (90)
day unsecured loans, or (b) the maximum applicable legal rate, if any.

 

22.04              “Legal
Requirements” shall mean laws, statutes and ordinances (including building
codes and zoning regulations, and ordinances) and the orders, rules, and
regulations, directives and requirements of all federal, state, county, city
and borough departments, bureaus, boards, agencies, offices, commissions and
other subdivisions thereof, or of any official thereof, or of any other
governmental public or quasi-public authority, whether now or hereafter in
force, which may be applicable to the Land or Building or the demised premises
or any part thereof, or the sidewalks, curbs or areas adjacent thereto and all
requirements, obligations and conditions of all instruments of record on the
date of this Lease.

 

ARTICLE 23

 

INVALIDITY OF ANY
PROVISION

 

23.01              If
any term, covenant, condition or provision of this Lease or the application
thereof to any circumstance or to any person, firm or corporation shall be
invalid or unenforceable to any extent, the remaining terms, covenants,
conditions and provisions of this Lease or the application thereof to any
circumstances or to any person, firm or corporation other than those as to
which any term, covenant, condition or provision is held invalid or
unenforceable, shall not be affected thereby and each remaining term, covenant,
condition and provision of this Lease shall be valid and shall be enforceable
to the fullest extent permitted by law.

 

ARTICLE 24

 

BROKERAGE

 

24.01              Tenant
covenants, represents and warrants that Tenant has had no dealings or
communications with any broker, or agent other than CB Richard Ellis, Inc.
(which is representing Landlord) and Republic Realty Services, Inc. in
connection with the consummation of this Lease, and Tenant covenants and agrees
to pay, hold harmless and indemnify Landlord from and against any and all cost,
expense (including reasonable attorneys’ fees) or liability for any
compensation, commissions or charges claimed by any broker or agent, other than
the broker(s) set forth in this Section 24.01, with respect to this
Lease or the negotiation thereof. 
Landlord agrees it shall be responsible for any compensation, commission
or charges due to the brokers identified above.

 

ARTICLE 25

 

SUBORDINATION

 

25.01              This
Lease is and shall be subject and subordinate to all ground or underlying
leases which may now or hereafter affect the real property of which the demised
premises forms a part and to all mortgages which may now or hereafter affect
such leases or such real property, and to all renewals, modifications,
replacements and extensions thereof.  The
provisions of this 

 

37

 

Section 25.01 shall be self operative
and no further instrument of subordination shall be required.  In confirmation of such subordination, Tenant
shall promptly execute and deliver at its own cost and expense any instrument,
in recordable form if required, that Landlord, the lessor of the ground or
underlying lease or the holder of any such mortgage or any of their respective
successors in interest may request to evidence such subordination provided the
same is in form and substance reasonably acceptable to Tenant.

 

25.02              In
the event of a termination of any ground or underlying lease, or if the
interests of Landlord under this Lease are transferred by reason of, or
assigned in lieu of, foreclosure or other proceedings for enforcement of any
mortgage, or if the holder of any mortgage acquires a lease in substitution
therefor, then Tenant under this Lease will, at the option to be exercised in
writing by the lessor under such ground or underlying lease or such mortgagee
or purchaser, assignee or lessee, as the case may be, either (i) attorn to
it and will perform for its benefit all the terms, covenants and conditions of
this Lease on Tenant’s part to be performed with the same force and effect as
if said lessor, such mortgagee or purchaser, assignee or lessee, were the
landlord originally named in this Lease, or (ii) enter into a new lease
with said lessor or such mortgagee or purchaser, assignee or lessee, as
landlord, for the remaining term of this Lease and otherwise on the same terms
and conditions and with the same options, if any, then remaining.  The foregoing provisions of clause (i) of
this Section 25.02 shall enure to the benefit of such lessor, mortgagee,
purchaser, assignee or lessee, shall be self operative upon the exercise of such
option, and no further instrument shall be required to give effect to said
provisions.  Tenant, however, upon demand
of any such lessor, mortgagee, purchaser, assignee or lessee agrees to execute,
from time to time, instruments in confirmation of the foregoing provisions of
this Section 25.02, satisfactory to any such lessor, mortgagee, purchaser,
assignee or lessee, acknowledging such attornment and setting forth the terms
and conditions of its tenancy provided the same is in form and substance
acceptable to Tenant.  Tenant hereby
constitutes and appoints Landlord or its successors in interest to be the
Tenant’s attorney in fact, irrevocably and coupled with an interest, to execute
and deliver such instrument of attornment, or such new lease, if the Tenant
refuses or fails to do so promptly upon request.

 

25.03              Anything
herein contained to the contrary notwithstanding, under no circumstances shall
the aforedescribed lessor under the ground lease or mortgagee or purchaser,
assignee or lessee, as the case may be, whether or not it shall have succeeded
to the interests of the landlord under this Lease, be:

 

(a)                   liable for any act, omission
or default of any prior landlord (including, without limitation, the then
defaulting landlord) unless of a continuing nature; or

 

(b)                   subject to any offsets,
claims or defenses which Tenant might have against any prior
landlord(including, without limitation, the then defaulting landlord) other
than any abatement provided for under the express terms of this Lease to the
extent such abatement is applicable to periods after the date of such
succession as landlord; or

 

(c)                   bound by any rent or
additional rent which Tenant might have paid to any prior landlord for more
than one month in advance; or

 

38

 

(d)                   bound by any modification,
amendment or abridgment of the Lease, or any cancellation or surrender or
termination of the same, made without its prior written approval to the extent
made after such party’s interest in the Building was identified in writing to
Tenant; or

 

(e)                   bound by any obligation to
make any payment to or on behalf of Tenant or to perform any improvements to
the demised premises; or

 

(f)                    bound to return Tenant’s
security deposit, if any, until such deposit has come into its actual
possession and Tenant would be entitled to such security deposit pursuant to
the terms of this Lease.

 

25.04              INTENTIONALLY
OMITTED.

 

25.05              Tenant
has notice that the Lease and the rents and all other sums due thereunder have
been or may be assigned to any mortgagee as security for a mortgage loan.  In the event any such mortgagee notifies
Tenant of the occurrence of an event of default under its mortgage and demands
that Tenant pay its rents and all other sums due or to become due under the Lease
directly to the mortgagee, Tenant shall honor such demand and pay its rent and
all other sums due under the Lease directly to such mortgagee or as otherwise
authorized in writing by such mortgagee. 
Landlord hereby irrevocably authorizes Tenant to make the foregoing
payments to such mortgagee upon such notice and demand.

 

ARTICLE 26

 

CERTIFICATE OF
TENANT

 

26.01              Tenant
agrees, at any time and from time to time, as requested by Landlord or any
mortgagee, upon not less than ten (10) days’ prior notice, to execute and
deliver to Landlord a statement certifying that this Lease is unmodified and in
full force and effect (or if there have been modifications, that the same is in
full force and effect as modified and stating the modifications), certifying the
dates to which the fixed annual rent and additional rent have been paid, and
stating whether or not, to the best knowledge of Tenant, Landlord is in default
in performance of any of its obligations under this Lease, and, if so,
specifying each such default of which Tenant may have knowledge and containing
such other information as Landlord may request, it being intended that any such
statement delivered pursuant hereto may be relied upon by others with whom
Landlord may be dealing.

 

26.02              In
the event of any act or omission by Landlord, Tenant will not exercise any
right to terminate this Lease (other than in connection with casualty or
eminent domain) or to remedy the default and deduct the cost thereof from rent
due hereunder until Tenant shall have given written notice of such act or
omission to the ground lessor and to the holder of any mortgage on the fee or
the ground lease to the extent such parties have been previously identified to
Tenant by written notice, and until a reasonable period for remedying such act
or omission shall have elapsed following the giving of such notices, and
following the time when such lessor or holder shall have the right pursuant to
such superior instrument to cure the same, during which time such lessor or
holder shall have the right, but shall not be obligated, to remedy or cause to 

 

39

 

be remedied such act or omission.  Tenant shall not exercise any right pursuant
to this Section 26.02 if the holder of any mortgage or such aforesaid
lessor commences to cure such aforesaid act or omission within a reasonable
time and diligently prosecutes such cure thereafter.  Tenant shall send a copy of any notices given
to Landlord under the Lease alleging nonperformance by Landlord of any term or
covenant under the Lease to such lessor, mortgagee, purchaser, assignee or
lessee, as the case may be, at the same time and in the same manner as such
notice is sent to Landlord provided the identity and mailing address for such
party or parties have been previously delivered to Tenant.

 

ARTICLE 27

 

LEGAL PROCEEDINGS;
WAIVER OF JURY TRIAL; WAIVER OF DAMAGES

 

27.01              Landlord
and Tenant do hereby 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 demised
premises, and/or any other claims (except claims for bodily injury or damage to
physical property), and any emergency statutory or any other statutory
remedy.  It is further mutually agreed
that in the event Landlord commences any summary proceeding, Tenant will not
interpose and does hereby waive the right to interpose any counterclaim of
whatever nature or description in any such proceeding.

 

27.02              Landlord
and Tenant each hereby waive all claims for consequential, punitive or special
damages against the other in connection with this Lease and any matters arising
therefrom except as Section 42.12 below.

 

ARTICLE 28

 

SURRENDER OF
PREMISES

 

28.01              Upon
the expiration or other termination of the term of this Lease, Tenant shall
quit and surrender to Landlord the demised premises, broom clean, in
substantially the same order and condition as existed on the Commencement Date,
ordinary wear and tear and damage by fire, the elements or other casualty
excepted, and Tenant shall remove all of its property as herein provided.  Tenant’s obligation to observe or perform
this covenant shall survive the expiration or other termination of the term of
this Lease.

 

ARTICLE 29

 

RULES AND
REGULATIONS

 

29.01              Tenant
and Tenant’s servants, employees and agents shall observe faithfully and comply
strictly with the Rules and Regulations set forth in Schedule B attached
hereto and made part hereof entitled “Rules and Regulations” and such
other and further reasonable Rules and Regulations as Landlord or Landlord’s
agents may from time to time adopt; provided, however, that in case of any
conflict or inconsistency between the provisions of this Lease and of any of
the Rules and Regulations as originally or as hereafter adopted, the
provisions of this 

 

40

 

Lease shall control.  Reasonable written notice of any additional Rules and
Regulations shall be given to Tenant.

 

Nothing in this
Lease contained shall be construed to impose upon Landlord any duty or
obligation to enforce the Rules and Regulations or the terms, covenants or
conditions in any other lease, against any other tenant of the Building, and
Landlord shall not be liable to Tenant for violation of the same by any other
tenant, its servants, employees, agents, visitors or licensees.

 

ARTICLE 30

 

CONSENTS AND
APPROVALS

 

30.01              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 setoff,
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, or at Tenant’s election,
Tenant may submit the same to expedited arbitration pursuant to Article 38
of this Lease.

 

ARTICLE 31

 

NOTICES

 

31.01              Any
notice or demand, consent, approval or disapproval, or statement required to be
given by the terms and provisions of this Lease, or by any law or governmental
regulation, either by Landlord to Tenant or by Tenant to Landlord, shall be in
writing.  Unless otherwise required by
such law or regulation, such notice or demand shall be given, and shall be
deemed to have been served and given three (3) business days after when
such notice or demand is mailed by registered or certified mail deposited
enclosed in a securely closed postpaid wrapper, in a United States Government
general or branch post office, or official depository within the exclusive care
and custody thereof, addressed to either party, at its address set forth on page 1
of this Lease.  After Tenant shall occupy
the demised premises, the address of Tenant for notices, demands, consents,
approvals or disapprovals shall be the Building.  Either party may, by notice as aforesaid,
designate a different address or addresses for notices, demands, consents,
approvals or disapprovals.

 

31.02              In
addition to the foregoing, either Landlord or Tenant may, from time to time,
request in writing that the other party serve a copy of any notice or demand,
consent, approval or disapproval, or statement, on one other person or entity
designated in such request, such service to be effected as provided in Section
31.01 hereof.  Landlord hereby requests
that a copy of all notices or demands from Tenant to Landlord be sent to
Capstone Equities, LLC,  14 Wall Street,
5th Floor, New York, New York 10005.  Tenant
hereby requests that a copy of all notices or 

 

41

 

demand from Landlord to Tenant be sent to
EnerNoc, Inc., 75 Federal Street, Suite 300, Boston, Massachusetts
02110, Attention: Mr. Neal Isaacson.

 

ARTICLE 32

 

NO WAIVER

 

32.01              No
agreement to accept a surrender of this Lease 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
demised premises prior to the termination of this Lease.  The delivery of keys to any employee of
Landlord or of Landlord’s agent shall not operate as a termination of this
Lease or a surrender of the demised premises. 
In the event of Tenant at any time desiring to have Landlord sublet the
demised 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. 
The failure of either party 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 herein, or hereafter adopted
by Landlord, shall not prevent a subsequent act, which would have originally
constituted a violation from having all the 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
herein, 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 amount than the monthly rent
herein stipulated shall be deemed to be other than on the account of the earliest
stipulated rent, nor shall any endorsement or payment of 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.

 

32.02              This
Lease contains the entire agreement between the parties, and 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.

 

ARTICLE 33

 

CAPTIONS

 

33.01              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.

 

42

 

ARTICLE 34

 

INABILITY TO PERFORM

 

34.01              If,
by reason of (1) strike, (2) labor troubles, (3) governmental
preemption in connection with a national emergency, (4) any rule, order or
regulation of any governmental agency, (5) conditions of supply or demand
which are affected by war or other national, state or municipal emergency, or
any other cause or (6) any cause beyond such party’s reasonable control, such
party shall be unable to fulfill its obligations under this Lease, such party
shall have no liability in connection therewith and this Lease, but in no event
shall the foregoing excuse or permit the delay of payment of any sum due
hereunder.

 

ARTICLE 35

 

NO REPRESENTATIONS
BY LANDLORD

 

35.01              Landlord
or Landlord’s agents have made no representations or promises with respect to
the Building or demised premises except as herein expressly set forth.

 

ARTICLE 36

 

NAME OF BUILDING

 

36.01              Landlord
shall have the full right at any time to name and change the name of the
Building and to change the designated address of the Building.  The Building may be named after any person,
firm, or otherwise, whether or not such name is, or resembles, the name of a
tenant of the Building.

 

ARTICLE 37

 

RESTRICTIONS UPON
USE

 

37.01              It
is expressly understood that no portion of the demised premises shall be used
as, or for (i) a bank, trust company, savings bank, industrial bank,
savings and loan association or personal loan bank (or any branch office or
public accommodation office of any of the foregoing), or (ii) a public
stenographer or typist, barber shop, beauty shop, beauty parlor or shop,
telephone or telegraph agency, telephone or secretarial service, messenger
service, travel or tourist agency, employment agency, public restaurant or bar,
commercial document reproduction or offset printing service, public vending
machines, retail, wholesale or discount shop for sale of merchandise, retail
service shop, labor union, school or classroom, governmental or
quasi-governmental bureau, department or agency, including an autonomous
governmental corporation, an advertising agency, a firm whose principal
business is real estate brokerage, or a company engaged in the business of renting
office or desk space.

 

43

 

ARTICLE 38

 

ARBITRATION

 

38.01              In
each case specified in this Lease in which resort to arbitration shall be
required, such arbitration (unless otherwise specifically provided in other
Sections of this Lease) shall be in New York City in accordance with the
Commercial Arbitration Rules of the American Arbitration Association and
the provisions of this Lease.  The
decision and award of the arbitrators shall be in writing, shall be final and
conclusive on the parties, and counterpart copies thereof shall be delivered to
each of the parties.  In rendering such
decision and awards, the arbitrators shall not add to, subtract from or
otherwise modify the provisions of this Lease. 
Judgment may be had on the decision and award of the arbitrators so
rendered in any court of competent jurisdiction.

 

ARTICLE 39

 

INDEMNITY

 

39.01              Tenant
shall indemnify, defend and save Landlord its agents, and employees and any
mortgagee of Landlord’s interest in the Land and/or the Building and any lessor
under any superior lease harmless from and against any liability or expense
arising from (i) the negligence or willful misconduct of Tenant, its
agents, and employees (ii) anything occurring within the demised premises
(except to the extent caused by or arising out of the negligence or willful
misconduct of Landlord, its agents, employees or contractors, or (iii) from
any breach of this Lease by Tenant. 
Landlord shall indemnify, defend and save Tenant its agents, and
employees and officers harmless from and against any liability or expense
arising from (i) the negligence or willful misconduct of Landlord, its
agents, and employees, and (ii) from any breach of this Lease by Landlord.

 

ARTICLE 40

 

MEMORANDUM OF LEASE

 

40.01              Tenant
shall, at the request of Landlord execute and deliver a statutory form of
memorandum of this Lease for the purpose of recording, but said memorandum of
this Lease shall not in any circumstances be deemed to modify or to change any
of the provisions of this Lease.  In no
event shall Tenant record this Lease.

 

ARTICLE 41

 

SECURITY

 

41.01              Tenant
has deposited with Landlord the sum of 70,000.00 as security for the faithful
performance and observance by Tenant of the terms, provisions, covenants and
conditions of this Lease; it is agreed that in the event Tenant defaults in
respect of any of the terms, provisions, covenants and conditions of this Lease
beyond applicable notice and cure periods, including, but not limited to, the
payment of fixed annual rent and additional rent, 

 

44

 

Landlord may use, apply or retain the whole
or any part of the security so deposited to the extent required for the payment
of any fixed annual 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, provisions, covenants and conditions of this Lease, including but not limited
to, any damages or deficiency accrued before or after summary proceedings or
other re-entry by Landlord.  The security
(or any remaining balance thereof after application by Landlord as permitted
above) shall be returned to Tenant within sixty (60) days after the date fixed
as the end of the Lease and after delivery of entire possession of the demised
premises to Landlord.  In the event of a
sale of the Land and Building or leasing of the Building, of which the demised
premises form a part, Landlord shall transfer the security to the vendee or
lessee and Landlord shall thereupon be released by Tenant from all liability
for the return of such security; and Tenant agrees to look solely to the new
landlord for the return of said security; and it is agreed that the provisions
hereof shall apply to every transfer or assignment made of the security to a
new landlord.  Tenant further covenants
that it will not assign or encumber or attempt to assign or encumber the monies
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.  In
the event Landlord applies or retains any portion or all of the security
deposited, Tenant shall forthwith restore the amount so applied or retained.
Said shall “burn-down” so that on the twenty fifth (25th) month
anniversary of the Commencement Date, the required security shall be reduced to
$50,000.00 and maintained at that level until the expiration of this Lease, and
within thirty (30) days of such 25th month anniversary, Landlord
shall return $20,000 to Tenant.

 

ARTICLE 42

 

MISCELLANEOUS

 

42.01              Irrespective
of the place of execution or performance, this Lease shall be governed by and
construed in accordance with the laws of the State of New York.

 

42.02              This
Lease shall be construed without regard to any presumption or other rule requiring
construction against the party causing this Lease to be drafted.

 

42.03              Except
as otherwise expressly provided in this Lease, each covenant, agreement,
obligation or other provision of this Lease on Tenant’s part to be performed
shall be deemed and construed as a separate and independent covenant of Tenant,
not dependent on any other provision of this Lease.

 

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

 

42.05              Time
shall be of the essence with respect to the exercise of any option granted
under this Lease.

 

42.06              Except
as otherwise provided herein, whenever payment of interest is required by the
terms hereof it shall be at the Interest Rate.

 

45

 

42.07              If
the demised premises or any additional space to be included within the demised
premises shall not be available for occupancy by Tenant in the condition
required hereunder on September 1, 2008 for any reason whatsoever, then
this Lease shall not be affected thereby but, in such case, (i) said date
shall be deemed to be postponed until the date when possession of the demised
premises or such additional space shall be delivered to Tenant for occupancy by
Tenant in the condition required hereunder and such date shall be the Commencement
Date, (ii) the schedule set forth in Section 1.01 shall be adjusted
based on such date and Tenant shall have no obligation to pay any fixed rent or
additional rent until such date, and (iii) Tenant shall not be entitled to
possession of the demised premises or such additional space until the same are
available for occupancy by Tenant except as provided in the “Witnesseth” clause
above; provided, however, that Tenant shall have no claim against Landlord, and
Landlord shall have no liability to Tenant by reason of any such postponement
of said specific date, and the parties hereto further agree that any failure to
have the demised premises or such additional space available for occupancy by
Tenant on said date shall in no wise affect the obligations of Tenant hereunder
(except as provided herein) nor shall the same be construed in any wise to
extend the term of this Lease and furthermore, this Section 42.07 shall be
deemed to be an express provision to the contrary of Section 223a of the
Real Property Law of the State of New York and any other law of like import now
or hereafter in force.

 

42.08              In
the event that Tenant is in arrears in payment of fixed annual rent or
additional rent hereunder, Tenant waives Tenant’s right, if any, to designate
the items against which any payments made by Tenant are to be credited, and
Tenant agrees that Landlord may apply any payments made by Tenant to any items
it sees fit, irrespective of and notwithstanding any designation or request by
Tenant as to the items against which any such payments shall be credited.

 

42.09              This
Lease shall not be binding upon either party unless and until it is signed by
Landlord and a signed copy thereof is delivered by Landlord to Tenant.

 

42.10              Tenant
shall not occupy any space in the Building (by assignment, sublease or
otherwise) other than the demised premises, except with the prior written
consent of Landlord in each instance.

 

42.11              Within
30 days after request by Landlord, Tenant shall deliver to Landlord Tenant’s
most recent publicly available financial statement of Tenant for such fiscal
year.

 

42.12              (a)               In the event this Lease is not
renewed or extended or a new lease is not entered into between the parties, and
if Tenant shall then hold over after the expiration of the term of this Lease,
and if Landlord shall then not proceed to remove Tenant from the demised
premises in the manner permitted by law (or shall not have given written notice
to Tenant that Tenant must vacate the demised premises) irrespective of whether
or not Landlord accepts rent from Tenant for a period beyond the Expiration
Date, the parties hereby agree that Tenant’s occupancy of the demised premises
after the expiration of the term shall be under a month-to-month tenancy
commencing on the first day after the expiration of the term, which tenancy
shall be upon all of the terms set forth in this Lease except Tenant shall pay
on the first day of each month of the holdover period as fixed annual rent, an
amount equal to the higher of (i) an amount equal to 1.75 times one-twelfth
of the sum of the fixed annual rent and additional rent payable by

 

46

 

Tenant during the last
year of the term of this lease (i.e., the year immediately prior to the
holdover period) or (ii) an amount equal to the then market rental value
for the demised premises as shall be established by Landlord giving notice to
Tenant of Landlord’s good faith estimate of such market rental value.  Tenant may dispute such market rental value
for the demised premises as estimated by Landlord by giving notice to Landlord
within but in no event after ten days after the giving of Landlord’s notice to
Tenant (as to the giving of which notice to Landlord, time shall be deemed of
the essence).  Enclosed with such notice,
Tenant shall be required to furnish to Landlord a certified opinion of a
reputable New York licensed real estate broker having leasing experience in the
Borough of Manhattan, for a period of not less than ten (10) years setting
forth said broker’s good faith opinion of the market rental value of the
demised premises.  If Tenant and Landlord
are unable to resolve any such dispute as to the market rental value for the
demised premises then an independent arbitrator who shall be a real estate
broker of similar qualifications and shall be selected from a listing of not
less than three (3) brokers furnished by the Real Estate Board of New York, Inc.
to Tenant and Landlord (at the request of either Landlord or Tenant).  If Landlord and Tenant are unable to agree
upon the selection of the individual arbitrator from such listing, then the
first arbitrator so listed by the Real Estate Board of New York, Inc.
shall be conclusively presumed to have been selected by both Landlord and
Tenant and the decision of such arbitrator shall be conclusive and binding upon
the parties as to the market rental value for the demised premises.  Pending the determination of the market
rental value of the demised premises upon the expiration of the term of this
lease, Tenant shall pay to Landlord as fixed annual rent an amount computed in
accordance with clauses (i) or (ii) of this subsection 42.12(a) (as
Landlord shall then elect), and upon determination of the market rental value
of the demised premises in accordance with the preceding provisions hereof
appropriate adjustments and payments shall be effected.  Further, Landlord shall not be required to
perform any work, furnish any materials or make any repairs within the demised
premises during the holdover period.  It
is further stipulated and agreed that if Landlord shall, at any time after the
expiration of the original term or after the expiration of any term created
thereafter, proceed to remove Tenant from the demised premises as a holdover,
the fixed annual rent for the use and occupancy of the demised premises during
any holdover period shall be calculated in the same manner as set forth above
in this Section 42.12.  In addition
to the foregoing, Landlord shall be entitled to recover from Tenant any losses
or damages arising from such holdover.

 

(b)                   Notwithstanding anything to
the contrary contained in this lease, the acceptance of any rent paid by Tenant
pursuant to subsection 42.12(a) hereof shall not preclude Landlord from
commencing and prosecuting a holdover or summary eviction proceeding, and the
preceding sentence shall be deemed to be an “agreement expressly providing
otherwise” within the meaning of Section 232-c of the Real Property Law of
the State of New York.

 

(c)                   If Tenant shall hold-over or
remain in possession of any portion of the Premises beyond the Expiration Date,
Tenant shall be subject not only to summary proceeding and all damages related
thereto, but also to any damages arising out of any 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.

 

42.13              Tenant
shall have four (4) hours of free usage of the service elevator in it is
initial move after normal Business Hours in.

 

47

 

ARTICLE 43  INTENTIONALLY OMITTED.

 

ARTICLE 44

 

ICIP

 

44.01              For
purposes of this Article 44, the term “Project” shall mean, collectively, (x) the
performance by Landlord of certain improvements in and to the common areas and
facilities of the Building, as determined by Landlord in it sole discretion,
and (y) the performance by Tenant of any alterations, additions,
installations or improvements, including Tenant’s Work.  All other terms used herein, unless otherwise
defined in this Lease, shall have the meanings ascribed to them in Sections
11-256 through 11-267 of the Administrative Code of the City of New York,
authorized by Title 2-D of Article 4 of the New York Real Property Tax Law
and all rules and regulations promulgated thereunder including without
limitation the rules and regulations of the New York City Department of
Finance (“DOF”), the New York City Department of Business Services (“DBS”) and
the New York City Department of Business Services, Division of Labor Services (“DOBS/DLS”)
(herein collectively called the “Industrial and Commercial Incentive Program”
or the “ICIP Program”).

 

44.02              Tenant
acknowledges that Landlord has advised Tenant that Landlord may  (but shall not be obligated to) apply for the
benefits and entitlements provided by Section 489-bbbb, Subdivision 5 of
the ICIP Program.  Tenant will cooperate
in all reasonable respects with Landlord in applying for, and in obtaining from
the appropriate governmental authorities, certificates of eligibility
determining that Landlord is eligible for a partial exemption from real estate
tax payments pursuant to the ICIP Program. Tenant shall comply (and, with
respect to any contractors and subcontractors performing work on the Project,
shall include or require, as the case may be, provisions in their contracts and
subcontracts requiring such contractors and subcontractors to comply, and
promptly following receipt of notice of any failure of such contractors or
subcontractors to comply, shall use reasonable efforts to enforce such contractual
obligations to comply, including, without limitation, by way of the termination
of such contracts and/or subcontracts) with all applicable provisions,
regulations and requirements of the ICIP Program so that the Building will
receive the benefits and entitlements provided by the ICIP Program (the “ICIP
Benefits”), which compliance shall include without limitation, the filing and
obtaining of  all required applications,
permits, licenses and certificates and, if required by the DOBS/DLS, the hiring
of apprentice laborers.  Landlord makes
no representation or warranty to Tenant that the ICIP Benefits shall be
received in whole or in part.

 

44.03              Tenant
shall, prior to the performance of any alterations, additions or improvements
in or to the demised premises or the Building, or the issuance of any building
permits or award of any construction contracts in connection therewith, notify
Landlord of its intent to perform such alterations, additions, improvements or
installations and the estimated cost thereof in order to enable Landlord to
include such alterations, installations, additions and improvements in the
Building’s applications for ICIP Benefits.

 

48

 

44.04             (i)                In order to ensure that no
actions taken by any construction managers, contractors or subcontractors
engaged by Tenant in connection with the Project (“Tenant’s Contractors”) will
cause the Building to fail to qualify for or to lose the ICIP Benefits, Tenant
shall use only such Tenant’s Contractors that qualify under and otherwise
satisfy the requirements of the ICIP Program for performance of work comprising
part of the Project.

 

(ii)             All of Tenant’s Contractors
employed in connection with the Project shall be contractually required by
Tenant to comply with the provisions of the ICIP Program.  Tenant hereby agrees that it shall indemnify
and hold harmless Landlord and its partners, directors, officers, agents and
employees from and against any and all claims, loss, damage, liability, cost or
expense arising from or in connection with any failure by Tenant or Tenant’s
Contractors to comply with the provisions of the ICIP Program.  If Landlord is notified of any violation of
the ICIP Program by Tenant’s Contractors, Landlord shall promptly advise Tenant
thereof and send a copy of such notice to Tenant, and Tenant will take all
appropriate diligent steps to cause Tenant’s Contractors to cure such
violations.

 

44.05              At
Landlord’s request, to the extent required to enable Landlord to file annual
certificates of continuing use as required by the ICIP Program and/or to
continue to receive the ICIP Benefits, Tenant shall (i) report to Landlord
the use of the demised premises, the number of workers permanently engaged in
employment in the demised premises, the nature of each worker’s employment, the
number of such workers who reside in New York City and the New York City
residency of each worker, (ii) provide access to the demised premises by
employees and agents of any governmental agency enforcing the ICIP Program
(including, without limitation, DOF) at all reasonable times, upon reasonable
notice when requested by Landlord and (iii) enforce the contractual
obligations of Tenant’s Contractors to comply with the DOBS/DLS requirements.

 

44.06              Without
limiting Tenant’s rights under this Article 44, Tenant shall not be
required to pay any real estate taxes or charges which may become due because
of the willful neglect or fraud by Landlord in connection with the ICIP
Program, or otherwise relieve or indemnify Landlord from any personal liability
which may arise under Section 11-265 of the Administrative Code of the
City of New York, unless the imposition of such real estate taxes or charges,
or liability, resulted from any actions of Tenant in violation of this Lease or
Tenant’s failure to comply with the ICIP Regulations.

 

44.07              Tenant
represents to Landlord that, within seven (7) years immediately preceding
the date of this Lease, Tenant has not been adjudged by a court of competent
jurisdiction to have been guilty of (x) an act, with respect to a
building, which is made a crime under the provisions of Article 150 of the
Penal Law of the State of New York or any similar law of another state, or (y) any
act made a crime or violations by the provisions of Section 235 of the
Real Property Law of the State of New York, nor is any charge for violation of
such laws presently pending against Tenant. Upon request of Landlord, from time
to time, Tenant agrees to update said representation when required because of
the ICIP Program.  Tenant further agrees
to cooperate with Landlord in compliance with the ICIP Program  to aid Landlord in obtaining and maintaining
the ICIP Benefits and, if requested by Landlord, to post a notice in a
conspicuous place in the demised premises and to publish a notice in a
newspaper of general circulation in the City of New York, in such form as shall
be prescribed by DOF, stating that persons having 

 

49

 

information concerning any violation by Tenant
of Section 235 of the Real Property Law or any Section of Article 150
of the Penal Law or any similar law of another jurisdiction may submit such
information to DOF to be considered in determining Landlord’s eligibility for
tax exemption benefits.

 

44.08.             Tenant hereby agrees that it shall
indemnify and hold harmless Landlord and its partners, directors, officers,
agents and employees from and against any and all claims, loss, damage,
liability, cost or expense arising from the Building’s failure to qualify for
or the loss of the ICIP Benefits as a result of Tenant’s failure to comply with
its obligations set forth in this Article 48 or any requirement of the
ICIP Program, or as a result of Tenant’s Contractors failure to comply with any
requirement of the ICIP Program.

 

44.08              Tenant
shall pay to Landlord on demand as additional rent hereunder, Tenant’s Tax
Proportionate Share of any and all reasonable costs incurred by Landlord in
connection with the ICIP Program.

 

50

 

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

 

 

	
   

  	
  CRP/CAPSTONE 14W
  PROPERTY OWNER, L.L.C.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Daniel
  Ghadamian

  
	
   

  	
   

  	
   

  	
  Name: Daniel
  Ghadamian

  
	
   

  	
   

  	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  ENERNOC, INC.,
  Tenant

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Neal C.
  Isaacson

  
	
   

  	
   

  	
   

  	
  Name: Neal C.
  Isaacson

  
	
   

  	
   

  	
   

  	
  Title: CFO

  

 

 

Tenant’s Federal Tax
Identification Number is: 87-0698303.

 

51

 

TENANT ACKNOWLEDGMENT

 

COMMONMWEALTH OF
MASSACHUSETTS       )

: ss.:

COUNTY OF SUFFOLK)

 

On the 8th day of September in
the year 2008, before me, the undersigned, a Notary Public in and for said
State, personally appeared Neal C. Isaacson, personally known to me or proved
to me on the basis of satisfactory evidence to be the individual(s) whose
name(s) is (are) subscribed to the within instrument and acknowledged to
me that he/she/they executed the same in his/her/their capacity(ies), and that
by his/her/their signature(s) on the instrument, the person(s), or the
entity upon behalf of which the individual(s) acted, executed the
instrument.

 

 

	
   

  	
    /s/
  Sarah Greene

  
	
   

  	
   

  
	
   

  	
  Notary Public

  

 

52

 

SCHEDULE A

 

Floor Plan

 

 

SCHEDULE B

 

RULES AND REGULATIONS

 

I.  Tenant shall not:

 

1.             Obstruct, encumber or use, or allow
or permit any of its employees, agents, licensees or invitees to congregate in
or on, the sidewalks, driveways, entrances, passages, courts, arcades,
esplanade areas, plazas, elevators, vestibules, stairways, corridors or halls
of the Building, outside of the demised premises, or use any of them for any
purposes other than for ingress and egress to and from the demised premises.

 

2.             Attach awnings or other projections
to the outside walls of the Building or place bottles, parcels or other
articles, or lettering visible from the exterior, on the windows, window sills
or peripheral air-conditioning enclosures.

 

3.             Attach to, hang on, or use in
connection with, any exterior window or entrance door of the demised premises,
any blinds, shades or screens which are not of a quality, type, design and
color, or which are not attached in a manner, approved by Landlord.

 

4.             Place or leave any door mat or
other floor covering in any area outside of the demised premises.

 

5.             Exhibit, inscribe, paint or affix
any sign, insignia, advertisement, object or other lettering in or on any
windows, doors, walls or part of the outside or inside of the Building
(exclusive of the inside of the demised premises), or in the demised premises
if visible from the outside, without Landlord’s approval, except that the name(s) of
Tenant and any permitted sublessee may be displayed on the entrance doors of
the premises occupied by each, subject to Landlord’s reasonable approval of the
size, color and design of such display and, if Landlord elects to perform such
work, Tenant shall pay Landlord for the performance of such work.

 

6.             Cover or obstruct the sashes, sash
doors, skylights, windows and doors that reflect or admit light and air into
the halls, passageways or other public areas of the Building.

 

7.             Place in, attach to, put in front
of, or affix to any part of the exterior of the Building, or any of its halls,
doors, corridors or vestibules, outside of the demised premises, any lettering,
signs, decorations, showcases, displays, display windows, packages, boxes or
other articles.

 

8.             Except in the normal decoration of
the interior of the demised premises, mark, paint, drill into, or in any way
deface, any part of the Building or the demised premises or cut, bore or string
wires therein.

 

 

9.             Permit or allow bicycles, vehicles,
animals, fish or birds of any kind to be brought into or kept on or about the
Building or the demised premises.

 

10.           Make, or permit or allow to be made,
any unseemly or disturbing noises, whether by musical instruments, recordings,
radio, talking machines, television, whistling, singing or in any other way,
which might disturb other occupants in the Building or those having business
with them or impair or interfere with the use or enjoyment by others of
neighboring buildings or premises.

 

11.           Bring into or keep on any part of the
demised premises or the Building any inflammable, combustible, radioactive or
explosive fluid, chemical or substance.

 

12.           Place upon any of the doors (other
than closet or vault doors) or windows in the Building any locks or bolts which
shall not be operable by the Grand Master Key for the Building, or make any
changes in locks or the mechanisms thereof which shall make such locks
inoperable by said Grand Master Key unless such change is approved by Landlord
in which event Tenant shall give Landlord duplicate keys for such locks or
bolts.

 

13.           Remove, or carry into or out of the
demised premises or the Building, any safes, freight, furniture, packages,
boxes, crates or any bulky or heavy objects except during such hours and in
such elevators as Landlord may reasonably determine from time to time.

 

14.           Use any lighting in perimeter areas
of the Building, other than that which is standard for the Building or approved
by Landlord, so as to permit uniformity of appearance to those viewing the
Building from the outside.

 

15.           Engage or pay any employees on the
demised premises except those actually working for Tenant in the demised premises,
or advertise for laborers giving the demised premises as an address.

 

16.           Obtain, permit or allow in the
Building the purchase, or acceptance for use in the demised premises, by means
of a service cart, vending machine or otherwise, of any ice, drinking water,
food, tobacco in any form, beverage, towel, barbering, boot blackening,
cleaning, floor polishing or other similar items or services from any persons,
except such persons, during such hours, except as may be approved by Landlord,
and in no event shall Tenant be required to use any preferred vendor of
Landlord for such services.

 

17.           Use, permit or allow any advertising
or identifying sign which Landlord shall have notified Tenant tends, in
Landlord’s judgment, to impair the reputation of the Building or its
desirability as a building for offices.

 

18.           Close and leave the demised premises
at any time without closing all operable windows and, if requested by Landlord,
turning out all lights.

 

19.           Permit entrance doors to the demised
premises to be left open at any time or unlocked when the demised premises are
not in use.

 

55

 

20.           Encourage canvassing, soliciting or
peddling in any part of the Building or permit or allow the same in the demised
premises.

 

21.           Use, or permit or allow any of its
employees, contractors, suppliers or invitees to use, any space or part of the
Building, including the passenger elevators or public halls thereof, in the
moving, delivery or receipt of safes, freight, furniture, packages, boxes,
crates, paper, office material or any other matter or thing, any hand trucks,
wagons or similar items which are not equipped with such rubber tires, side
guards and other safeguards which shall have been approved by Landlord or use any
such hand trucks, wagons or similar items in any of the passenger elevators.

 

22.           Cause or permit any food odors or any
other unusual or objectionable odors to exist in or emanate from the demised
premises or permit any cooking or preparation of food except in areas approved
by Landlord and in compliance with local ordinances.

 

23.           Create or permit a public or private
nuisance.

 

24.           Throw or allow or permit to be thrown
anything out of the doors, windows or skylights or down the passageways of the
Building.

 

25.           Lay vinyl asbestos tile or other
similar floor covering so that the same shall come in direct contact with the
floor or in a manner or by means of such pastes or other adhesives which shall
not have been approved by Landlord, it being understood that if linoleum or
other similar floor covering is desired to be used, an interlining of builder’s
deadening felt shall be first affixed to the floor, by a paste or other
material which is soluble in water, the use of cement or other similar adhesive
material being expressly prohibited.

 

26.           Use, allow or permit the passenger
elevators to be used by Tenant’s working hands (persons in rough clothing
handling packages, cartons and shipments of material or mail) or persons
carrying bulky packages or by persons calling for or delivering mail or goods
to or from the demised premises, and Tenant shall cooperate with Landlord in
enforcing this Rule on those making deliveries to Tenant.

 

27.           Request any of Landlord’s agents,
employees or contractors to perform any work, or do anything, outside of their
regular duties, unless previously approved by the Building manager.

 

28.           Invite to the demised premises or the
Building, or permit the visit of, persons in such numbers or under such
conditions as to unreasonably interfere with the use and enjoyment of any of
the plazas, entrances, corridors, arcades, escalators, elevators or other
facilities of the Building by other occupants thereof.

 

29.           Use, permit or allow the use of any
fire exits or stairways for any purpose other than emergency use.

 

30.           Employ any firm, person or persons to
move safes, machines or other heavy objects into or out of the Building,
without prior approval of Landlord of such persons and 

 

56

 

the manner in which such
items will be moved, which approval shall not be unreasonably withheld.

 

31.           Install or use any machines or
machinery of any kind whatsoever which may disturb any persons outside of the
demised premises.

 

32.           Use the water and wash closets or
other plumbing fixtures for any purpose other than those for which they were
constructed, or allow or permit sweepings, rubbish, rags, or other solid
substances to be thrown therein.

 

33.           Install any carpeting or drapes, or
paneling, grounds or other decorative wood products, in the demised premises,
other than those wood products considered furniture, which are not treated with
fire retardant materials and, in such event, shall submit, to Landlord’s
reasonable satisfaction, proof or other reasonable certification of the
materials reasonably satisfactory fire retardant characteristics.

 

II.  Tenant shall:

 

1.             Pay Landlord for any damages, costs
or expenses incurred by Landlord with respect to the breach of any of the Rules and
Regulations contained in or provided by this Lease by Tenant, or any of its
servants, agents, employees, licensees or invitees, or the misuse by Tenant, or
any of the aforesaid, of any fixture or part of the demised premises or the
Building and shall cause its servants, agents, employees, licensees and
invitees to comply with the Rules and Regulations contained in or provided
for by this Lease.

 

2.             Upon the termination of this Lease,
turn over to Landlord all keys. either furnished to, or otherwise procured by,
Tenant with respect to any locks used by Tenant in the demised premises or the
Building and, in the event of the loss of such keys, pay to Landlord the cost
of procuring same.

 

3.             Subject to the provisions of Article 29
hereof, refrain from, and immediately upon receipt of notice thereof,
discontinue any violation or breach of the Rules and Regulations contained
in or provided for by this Lease.

 

4.             Request Landlord to furnish passes
to persons whom Tenant desires to have access to the demised premises during
After Hours and be responsible and liable to Landlord for all persons and acts
of such persons for whom Tenant requests such passes.

 

5.             Furnish artificial light and
electrical energy (unless Landlord shall furnish electrical energy as a service
included in the rent) at Tenant’s expense for the employees of Landlord or
Landlord’s contractors while doing janitorial or other cleaning services or
while making repairs or alterations in the demised premises.

 

6.             Apply at the office of the Building’s
manager with respect to all matters and requirements of Tenant which require
the attention of Landlord, its agents or any of its employees.

 

57

 

7.             Pay Landlord’s reasonable charges
for the installation and replacement of ceiling tiles removed for Tenant by
telephone installers or others in the demised premises and public corridors, if
any.

 

8.             Purchase from Landlord or Landlord’s
designee, at Landlord’s option, all lighting tubes, lamps, bulbs and ballasts
used in the demised premises and pay Landlord, or Landlord’s designee, as the
case may be, its reasonable charges for the purchase and installation thereof.

 

9.             Pay Landlord’s reasonable charges
for the hiring or providing of security guards during times when Tenant, or any
subtenant of Tenant, is moving into or out of portions of the demised premises
or when significant quantities of furniture or other materials are being
brought into or removed from the demised premises.

 

III.  Landlord shall:

 

1.             Have the right to inspect all
freight objects or bulky matter (except printed matter) brought into the
Building and to exclude from the Building all objects and matter which violate
any of the Rules and Regulations contained in or provided by this Lease.

 

2.             Have the right to require any
person leaving the demised premises with any package, or other object or
matter, to submit a pass, listing such package or object or matter, from
Tenant.

 

3.             In no way be liable to Tenant or
any other party for damages or loss arising from the admission, exclusion or
rejection of any person or any property to or from the demised premises or the
Building under the provisions of the Rules and Regulations contained in or
provided for by this Lease.

 

4.             Have no liability or responsibility
for the protection of any of Tenant’s property as a result of damage or the
unauthorized removal of any such property resulting wholly or in part from
Landlord’s failure to enforce, in any particular instance, or generally, any of
Landlord’s rights.

 

5.             Have the right to require all persons
entering or leaving the Building, during After Hours, to sign a register and
may also exclude from the Building, during such After Hours, all persons who do
not present a pass to the Building signed by Landlord.

 

6.             Furnish passes to persons for whom Tenant
requests same.

 

7.             Have the right to control and
operate the public portions of the Building and the public facilities, as well
as facilities furnished for the common use of other occupants, of the Building.

 

8.             Have the right to remove any
violation of Paragraph I items 2, 3, 4, 5, 6 or 7 of these Rules and
Regulations without any right of Tenant to claim any liability against
Landlord, and have the right to impose a reasonable charge against Tenant for
removing any such violation or repairing any damages resulting therefrom.

 

58

 

SCHEDULE C

 

LANDLORD’S RULES AND REGULATIONS FOR ALTERATIONS

 

 

SCHEDULE D

 

SPECIFICATION AND PLAN OF LANDLORD WORK AND TENANT
WORK

 

Landlord shall perform
the following work (“Landlord Work”) at its cost:

 

1) Coordinate and install
electrical wiring and cable conduit to the four locations shown on
the Floor Plan dated 8/27/2008 (attached hereto as Schedule A) to serve the
furniture cluster in the middle of the open space and to the two floating cubes
in customer operations) (Shall be completed within five business days after the
day of Lease Execution);

 

2) Install an electrical
receptacle in the new multipurpose room as shown on the Plan (Shall be
completed within five business days after the day of Lease Execution);

 

3) Relocate a plywood
mount from the portion of the room designated as multipurpose room on the Floor
Plan to the server room to accommodate tenant telephone/data
equipment circuit, and to provide one (1) 208V 30A circuit for Tenant
(Shall be completed within two business days after the day of Lease Execution);

 

4) Landlord to relocate
the “sales office” door (the “Door”), and provide mill work and side light (due
to the narrow side, the sidelight will be 8-12” wide instead of the wider
lights in the other offices).  The Landlord shall have the opening
relocated (to be completed within five (5) business days after the day of
Lease Execution, the Door, hardware and sidelight (due to lead time
requirements) shall be delivered and installed after business hours (to be
installed within fifteen (15) business days 
after the completion of the opening relocation); and

 

5) The twist lock
receptacle shall be furnished and installed by Tenant at its sole cost and
expense.

 

Tenant shall have the
right to perform the following work (“Tenant Work”) at its sole cost and
expense:

 

1) Tenant shall have the
right to construction a partition between server room and multi-purpose
conference room as shown on the Floor Plan.

 

2 )  Install (1) 3x8
building standard wood door w/ wood frame and all
required hardware at the new server room.

 

 3 ) Tennant
shall have the option to add floor mounted receptacle for electrical and data
service to conference room (the large conference room on the Floor Plan) and
Landlord shall coordinate the same and provide and install conduit.

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