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        EXHIBIT 10.10

         

        
          		
                  MANAGEMENT
      AGREEMENT

                	 

        

         

      

    

     

    This
Management Agreement (“Agreement”) is made as of June 21, 2010 between ARC NYRR
61st Street
LLC, a Delaware limited liability company ("Owner") and CB Richard Ellis, Inc.,
a Delaware corporation ("Manager") with reference to the following
facts:

     

     

    
      	
              A.

            	
              Owner
      is the owner of, or is contemplating the acquisition of, the land and
      improvements commonly known as  the Interior Design Building,
      and located at 306 East 61st
      Street, New York, New York (the
“Property”).

            

    

     

    
      	
              B.

            	
              Manager
      represents that it is in the business of managing properties similar to
      the Property and possesses the skills and experience necessary for the
      efficient, professional management of the
  Property.

            

    

     

    
      	
              C.

            	
              Owner
      desires to engage the services of Manager in connection with managing the
      Property and Manager desires to provide such services to
      Owner.

            

    

     

    Now,
therefore, in consideration of the following promises, obligations and
agreements, Owner and Manager agree as follows:

     

     

    ARTICLE
I - BASIC TERMS

     

    
      	
              1.1

            	
              Effective
      Date:  Manager's appointment under Article II shall
      become effective as of the date hereof (the "Effective Date"), except that
      if this Agreement is executed by Owner in anticipation of acquiring the
      Property, the Effective Date shall be the date of such acquisition
      (“Acquisition Date”) and Owner shall be under no obligation to Manager
      unless Owner acquires the
Property.

            

    

     

    
      	
              1.2

            	
              Term:  The
      term of this Agreement shall commence on the Effective Date and shall
      continue for a period of Twelve (12) months, and thereafter the term shall
      be automatically renewed for additional periods of twelve months each,
      subject at all times to the rights of termination set forth in Section
      11.1.

            

    

     

    
      	
              1.3

            	
              Limit
      on Amount Authorized For Non-Emergency Purchase and Repairs and Contact
      Amount Requiring Owner Approval.  The limit on the amount
      Manager may incur for non-emergency purchases or repairs under Section 4.4
      is $5,000.  Owner’s prior written approval is required under
      Section 4.5(b) of any contract for more than
  $5,000.

            

    

     

    
      	
              1.4

            	
              Bank
      and Bank Account:  Owner and/or Owner’s lender shall
      designate a bank (the “Bank”) in which the rents and other revenues from
      the Property shall be deposited pursuant to Section 4.10 (the “Lockbox
      Account”).  Funds in the Lockbox Account shall be swept into the
      Owner’s operating account on
      a weekly basis (or more or less frequently as determined by Owner and
      subject to the requirements of Owner’s lender) (the “Owner’s Operating
      Account”).  Owner shall periodically transfer funds from the
      Owner’s Operating Account into a client trust account maintained by the
      Manager and named as follows:  “ARC NYRR E61ST Building
      Operating Account” (the “Bank Account”).  The Bank Account will
      also be used to pay all approved and authorized expenses for the
      Property, as set forth herein.  Manager is authorized as “Agent
      for Owner” to draw on the Bank Account in accordance with the provisions
      of this Agreement, provided, however, Owner shall have the right to revoke
      such authorization at any time during the Term of this
      Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

      
        
          
             

            
              		
                      MANAGEMENT
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              1.5

            	
              Address
      of Owner.  Unless changed by written notice to Manager,
      the address of Owner for notices under Section 12.2 shall
      be:  c/o American Realty Capital
      II, LLC, attention William M. Kahane, 405 Park Avenue, 15th
      Floor, New York, NY
10022.

            

    

    
      	
               
      

            	
               

            

    

     

    
      	
              1.6

            	
              Address
      of Manager.  Unless changed by written notice to Owner,
      the address of Manager for notices under Section 12.2 shall
      be:

            

    

     

    CB
Richard Ellis, Inc.

    200 Park
Avenue

    17th
Floor

    New York,
NY 10166

     

    Attention:
Senior Vice President Legal

     

    
      	
              1.7

            	
              Management
      Fee.  Subject to Article X, the management fee payable to
      Manager for its services under this Agreement shall be an amount per month
      equal to $38,600 per year ($3,216.67 per month).  The management
      fee shall be due and payable in the month in which it is
      earned.  In the event, this Agreement is for a term of more than
      one (1) year, or is extended for an additional year(s), the management fee
      will be increased by three (3%) percent for each year.  In the
      event, this Agreement is extended on a month-to-month basis, the
      management fee will be increased three (3%) percent for each successive
      twelve (12) month period.

            

    

     

     

    ARTICLE
II - APPOINTMENT

     

    
      	
              2.1

            	
              Owner
      hereby appoints Manager as the manager for the Property as of the
      Effective Date, and for the term stated in Section 1.2. Owner hereby
      authorizes Manager to exercise such powers and to take such actions with
      respect to the Property as may be necessary for the performance of
      Manager's obligations under this Agreement.  Manager hereby
      accepts such appoint­ment on the terms and conditions hereinafter set
      forth.

            

    

     

     

    ARTICLE
III - LEASING

     

    
      	
              3.1

            	
              Intentionally
      Deleted.

            

    

     

    
      	
              3.2

            	
              Intentionally
      Deleted.

            

    

     

    
      	
              3.3

            	
              Intentionally
      Deleted.

            

    

     

     

    ARTICLE
IV - DUTIES OF MANAGER

     

    
      	
              4.1

            	
              General
      Duties.  Manager, on behalf of Owner, shall use diligent
      efforts to manage and operate the Property consistent with the
      Approved Budget (as defined herein) and shall comply with Owner's
      in­structions as set forth herein or as may from time to time be
      provided in writing by Owner to Manager.  Manager shall perform
      its services in a professional and diligent manner and shall manage,
      operate, repair, maintain and service the Property consistent with
      industry standards in the locale where the Property is
      located.  In connection therewith, Manager shall conduct the
      ordinary and usual business affairs of Owner relating to the Property as
      provided in this Agreement and shall implement, or cause to be
      implemented, the Owner’s decisions.  In particular, Manager
      shall have the duties and obligations set forth hereafter in this Article
      IV.

            

    

     

    
      
        
        

      

      
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              4.2

            	
              Utility
      and Service Contracts.  Manager shall negotiate contracts
      on behalf of Owner for gas, electricity, water, telephone, trash
      collection, sewer, elevator service, landscaping, janitorial service,
      security service and such other services as are, or will be, furnished to
      the Property for terms of not greater than one year, unless otherwise
      approved by Owner.  All such service contracts shall be entered
      into by Manager for the account of and in the name of Owner and shall be
      terminable on 30 days notice or less, unless otherwise approved by
      Owner.  The funds necessary to pay for such services shall be
      paid from the Bank Account.

            

    

     

    
      	
              4.3

            	
              Employment
      of Personnel.  All persons employed in connection with
      the operation and maintenance of the Property shall either be employees of
      Manager or such vendors, consultants or independent contractors (including
      any designated subsidiary or affiliate of Manager) as may be retained by
      Manager and shall not be employees of Owner.  Subject to
      reimbursement pursuant to Section 9.1, Manager shall select, employ, pay,
      supervise, direct and discharge all employees necessary for the operation
      and maintenance of the Property, and shall use reasonable care in the
      selection and supervision of such employees.  Manager shall be
      responsible for complying with all laws, regulations and collective
      bargaining agreements affecting such employment, subject to limitations
      imposed by Owner.  Owner also agrees to become a member of the
      Realty Advisory Board on Labor Relations (“RAB”) within thirty (30) days
      from the date of this Agreement and remain a member for the term of this
      agreement for the purpose of having the RAB represent Owner in any
      collective bargaining contract negotiations or labor disputes with union
      employees at the Property.  Manager is and will continue
      throughout the term of this Agreement to be an Equal Opportunity
      Employer.

            

    

     

    
      	
              4.4

            	
              Maintenance
      and Repairs.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to the Budget or Owner constraints, Manager shall perform or cause to be
      performed under contract or agreement with contractors, subcontractors or
      consultants, entered into in the name and on behalf of Owner, all ordinary
      maintenance, repairs, alterations, replacements and installations, do all
      decorating and landscaping, and purchase all supplies necessary for (i)
      the proper operation of the Property, (ii) the fulfillment of Owner's
      obligations under any lease of space in the Property, (iii) the
      fulfillment of Owner’s obligations under any mortgage encumbering the
      Property, provided Owner gives Manager written notice of such mortgage
      obligations, and  (iv) compliance with covenants, conditions and
      restrictions affecting the Property, provided Owner gives Manager written
      notice of such covenants, conditions and restrictions, and further
      provided Manager shall not make any purchase or order any work costing
      more than the limit on the amount authorized for non-emergency purchases
      and repairs set forth in Section 1.3 without Owner's prior written
      approval, except in circumstances reasonably deemed by Manager to be an
      emergency requiring immediate action for the protection of the Property or
      tenants or other persons or to avoid the suspension of necessary
      services.  Manager shall promptly notify Owner of the necessity
      for, the nature of, and the cost of such emergency repairs or
      compliance.  Manager shall submit to Owner and maintain a list
      of all contractors and subcontractors that perform any work, repairs,
      alterations, replacements or services on the Property under Manager's
      di­rection.  All repairs, alterations and replacements shall
      be of at least equal quality and workmanship to the original work, subject
      to the requirements of the Approved Budget and Owner’s
      authorization.

            

    

     

    
      
        
        

      

      
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              (b)

            	
              Subject
      to the Budget or Owner constraints, Manager shall obtain all necessary
      receipts, releases, waivers, discharges and assurances necessary to keep
      the Property free of any mechanics', laborers', materials suppliers' or
      vendors' liens in connection with work, materials or supplies for which
      Manager contracts.  All such documentation shall be in such form
      as specified and required by Owner.

            

    

     

    4.5           Contracts
with Third Parties.

     

    
      	
               
      

            	
              (a)

            	
              Manager
      shall monitor all independent contractors, consultants, suppliers and
      entities retained in Owner’s name by Manager for the operation, repair,
      maintenance and servicing of the Property or for any other activity within
      the scope of this Agreement.  All of such contractors and the
      contracts of their engagement shall be subject to Owner's specification
      and prior written approval.  Manager shall require that any
      contractor performing work on the Property maintain insurance satisfactory
      to Owner, as specified in Article 7.1. (e), including, but not limited to,
      Workers' Compensation Insurance (and, when required by law, compulsory
      Non-Occupational Disability Insurance) and insurance against liability for
      injury to persons and property arising out of all such contractor's
      presence upon the Property, operations and completed operations naming
      Manager, Owner and Owner's Representative (if applicable) as additional
      insureds.  Manager shall obtain certificates of insurance for
      all such insurance before the work begins. Manager shall furnish copies of
      the certificates to Owner.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Manager
      shall not execute, or otherwise enter into or bind Owner with respect to
      any contract or agreement for equipment, supplies, services or any other
      item where the aggregate amount of such contract is in excess of Five
      Thousand Dollars ($5,000) without obtaining competitive written
      bids.  Manager shall not engage Owner in any contract or
      agreement for more than the amount specified in Section 1.3 without
      Owner’s prior written approval.  All contracts, agreements or
      other ar­rangements made pursuant to this Agreement shall be in the
      name of Owner and, unless otherwise approved by Owner, shall be terminable
      on 30 days' notice or less.

            

    

     

    
      	
              4.6

            	
              Purchase
      of Supplies and Materials.  Manager shall, in behalf of
      Owner, purchase all equipment, tools, appliances, materials and supplies
      reasonably necessary or desirable for the maintenance and operation of the
      Property.  All such purchases shall be subject to the prior
      review and written approval of Owner if such purchases are not included in
      the current Approved Budget.  Contracts for all such purchases,
      which are included in the Approved Budget or are otherwise approved by
      Owner, shall be on purchase forms approved by Owner and shall be in the
      name of the Owner.  Such purchases shall be used solely in
      connection with the operation and maintenance of the
      Property.  In connection with the performance of its duties
      pursuant to this Section 4.6, Manager shall use its best efforts to
      qualify for any cash and trade discounts, refunds, or credits and which,
      if they are in the form of cash, shall be deposited in the Bank
      Account.  If Owner is entitled to discounts from contractors and
      suppliers under any national or regional agreements, Manager shall avail
      itself of such national or regional agreements whenever
      possible.  Notwithstanding the foregoing, Manager shall be
      entitled to retain any transaction fees received from, and/or the benefit
      of any equity interest held in, such suppliers provided that such fees or
      equity interests do not result in any increased cost to Owner for such
      supplies or materials.

            

    

     

    
      
        
        

      

      
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              4.7

            	
              Contracts
      with Affiliated Entities.  Manager may, upon prior
      written notice to Owner, purchase materials, tools or supplies or contract
      for repair, construction or any other service for the Property pursuant to
      Sections 4.2, 4.3, 4.4 or 4.6 with a party in which Manager (or any
      subsidiary, affiliate or related entity) holds a beneficial interest
      provided that the pricing for such materials or services does not exceed
      the cost of such materials or services commonly charged in the area where
      the Property is located.

            

    

     

    
      	
              4.8

            	
              Complaints
      and Notices.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Manager
      shall promptly handle complaints and requests from tenants,
      concessionaires and licensees and notify Owner of any major complaint made
      by a tenant, concessionaire or licensee.  Manager shall notify
      Owner promptly of: (i) any notice received by Manager or known to Manager
      of violation of any governmental requirements (and make recommendations
      regarding compliance therewith); (ii) any notice received by Manager or
      known to Manager of violation of covenants, conditions and restrictions
      affecting the Property or noncompliance with loan documents affecting the
      Property, if any; (iii) any fire, accident or other casualty or damage to
      the Property;  (iv) any condemnation proceedings, rezoning or
      other govern­mental order, lawsuit or threat thereof involving the
      Property known to Manager; (v) any violations relative to the leasing,
      use, repair and maintenance of the Property under governmental laws,
      rules, regulations, ordinances or like provisions known to
      Manager;  (vi) defaults under any leases or other agreements
      affect­ing the Property; or (vii) any violation of any insurance
      requirement.  Manager shall promptly deliver to Owner copies of
      any documentation in its possession relating to such
      matters.  Manager shall keep Owner reasonably informed of the
      status of the particular matter through the final resolution
      thereof.  In the event Manager becomes aware of any fire or
      other damage to the Property or violation or alleged violation of laws
      respecting Hazardous Materials, Manager shall immediately give telephonic
      notice thereof to Owner.  Manager shall complete all necessary
      and customary loss reports in connection with any fire or other damage to
      the Property.  Manager shall retain in the records it maintains
      for the Property copies of all supporting docu­mentation with
      reference to such notices.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Manager
      shall promptly notify Owner and any insurance agent Owner may designate of
      any personal injury or property damage occurring to or claimed by any
      tenant or third party on or with respect to the
      Property.  Manager shall promptly forward to Owner with copies
      to any insurance agent Owner may designate any summons, subpoena or other
      legal document served upon Manager relating to the actual or alleged
      potential liability of Owner, of Manager or of the
    Property.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Should
      any claim, demand, suit or other legal proceeding be made or instituted by
      any third party against Owner which arises out of any matters relating to
      the Property, this Agreement or Manager's performance hereunder, Manager
      shall give Owner all pertinent information, and reasonable assistance
      subject to Section 6.2(g) below, in the defense or other disposition
      thereof.

            

    

     

    
      	
              4.9

            	
              Tenant
      Insurance Certificates.  Manager shall use its best
      efforts to obtain from all tenants certificates of insurance and renewals
      thereof required to be furnished by the terms of their
      leases.  Manager shall forward copies of the certificates to
      Owner for all renewals.  Manager shall establish systems and
      procedures to enforce lease requirements with regard to insurance
      certificates.

            

    

     

    
      
        
        

      

      
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              4.10 

            	
              Enforcement
      of Leases and Deposit of
Revenue.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Manager
      shall use reasonable and diligent efforts to enforce the terms of all
      leases, concessions and licenses and to receive and collect all rents,
      including percentage rents, and all other revenues payable to Owner from
      the Property as the same become due and payable.  Manager shall
      deposit the rents and other revenues promptly into the Lockbox Account
      (the Lockbox Account shall be controlled by Owner).  Without in
      any way limiting the foregoing if Manager receives any gross revenue from
      the Property, then (i) such amounts shall not be commingled with any other
      funds or property of Manager, and (ii) Manager shall deposit such amounts
      in the Lockbox Account within one (1) Business Day of
    receipt.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Funds
      deposited into the Lockbox Account shall be applied and disbursed in
      accordance with this Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Lockbox Account shall be used exclusively for such funds.  Owner
      may supply Manager with written instructions to notify promptly third
      parties of such deposits, to enable transfer of Owner's monies to other
      bank accounts.  A Bank Account shall be opened by Owner and
      shall name as signatories employees of Manager approved in writing by
      Owner and such other persons as Owner may designate in
      writing.  All withdrawals from the Bank Account shall require
      one signatures. Manager shall obtain Owner’s approval, via Manager’s
      on-line document tracking and approval system, for any expenditures by
      Manager in excess of $25,000.  At Owner's option, and cost, the
      Bank Account may be comprised of two accounts, a checking account in which
      the funds on deposit shall be kept to the minimum practicable to pay
      day-to-day expenses and a money market account or other interest bearing
      account. Manager shall receive and collect all tenant security deposits
      payable to Owner by tenants of the Property and deposit the same promptly
      in the Bank Account.  To the extent tenants are en­titled to
      interest on such security deposits or a refund of such deposits upon
      vacating the Property, Manager shall pay such interest or refund such
      deposits from the Bank Account to the tenants entitled
      thereto.  In the event state law requires that tenant security
      deposits be held in a separate account, such separate account shall be
      established by Owner.  Checks drawn to refund security deposits
      to tenants shall be drawn only upon the signatures of authorized employees
      of the Manager and Owner.  Manager shall cooperate with Owner to
      satisfy such conditions as Owner may place on the release of a security
      deposit from the Bank Account.  Manager shall maintain detailed
      records of all security deposits and allow Owner and its designee’s access
      to such records.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Manager
      shall, at Owner’s request and expense, engage counsel and cause legal
      proceedings to be instituted as may be necessary to enforce payment of
      rent and compliance with provisions of tenant leases, to dispossess
      tenants, or to enforce the terms of vendor or subcontractor
      contracts.  Manager shall use Owner’s choice of legal counsel to
      assist as deemed necessary by Owner in lease and/or contract preparation
      and negotiation, to provide legal advice in connection with management
      issues at the Property, and to institute legal proceedings.  All
      compromises, settlements, or legal proceedings shall be subject to the
      prior approval of Owner.  Attorneys’ fees and costs incurred in
      any of the foregoing shall be expenses of the Property, and ultimately an
      obligation of Owner.  Owner and Manager shall agree upon a
      reasonable projection for attorney's fees and costs in the Approved
      Budget.

            

    

     

    
      
        
        

      

      
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              4.11 

            	
              Special
      Billings.

            

    

     

    
      	
               
      

            	
              (a)

            	
              For
      purposes of this Agreement, the term “Special Billing” is defined as any
      periodic billing requirement or change in a billing rate charged to a
      tenant under such tenant’s lease as a result of the Property’s operating
      expenses, a tenant’s volume of business, or a CPI or other index,
      including, but not limited to, such items as commonly are described as
      expense pass throughs, recoveries, escalations, CAM or CPI adjustments,
      and percentage sales or rent.  Within ninety (90) days after the
      commencement of this Agreement, subject to receiving the necessary
      information from Owner, Manager shall deliver a statement to Owner
      describing all of the information, data and documents received from Owner
      or the prior property manager, which Manager has used to establish a basis
      for calculation of Special Billings for each tenant at the Property. Owner
      shall certify in writing that such information is accurate and complete or
      provide written corrections or additions within thirty (30) days after
      delivery of the statement to Owner; Owner’s failure to notify Manager in
      writing of any corrections or additions within such thirty (30) day period
      shall be deemed certification by Owner of the accuracy and completeness of
      such information.  During the term of this Agreement, Manager
      shall be responsible for sending Special Billings to each tenant in
      accordance with the terms of such tenant’s
  lease.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Manager
      may rely upon, and shall not be responsible for the completeness and
      accuracy of, any information, data and documents received from the Owner
      or the prior property manager, or generated prior to the commencement of
      this Agreement, in connection with the performance of its duties and
      obligations hereunder including, but not limited to, the preparation and
      calculation of Special Billings.  Manager shall not be
      responsible for Special Billings, which either are due, or are based upon
      expense activity, for (i) periods ending prior to the commencement of
      Manager’s management of the Property, or (ii) periods ending subsequent to
      the termination of Manager’s management of the Property under this
      Agreement.  Owner agrees to defend, indemnify and hold Manager
      harmless from and against any and all claims, liabilities, demands,
      damages, losses, attorneys’ fees, costs or expenses of any nature arising
      out of, based upon, or related to such information, data and documents
      received from Owner or the prior manager, or generated prior to the
      commencement of this Agreement.

            

    

     

    
      
        
        

      

      
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              4.12.

            	
              Compliance
      with Laws.  Subject to the other provisions of this
      Agreement, at Owner’s expense, Manager shall use reasonable efforts to
      cause the Property to comply with federal, state and municipal laws, all
      known ordinances, regulations and orders relative to the leasing, use,
      operation, repair and maintenance of the Property and with the rules,
      regulations or orders of the local Board of Fire Underwriters or other
      similar body.  Manager shall use reasonable efforts to remedy
      the violation of any such law, ordinance, rule, regulation or order of
      which it has actual knowledge and which violation occurs after the date
      hereof, at Owner’s expense.  Expenses incurred in so complying
      and in correcting any such violation shall be included in the Approved
      budget or otherwise approved in advance by Owner.  At Owner’s
      expense, and if requested in writing by Owner, Manager shall use
      reasonable efforts to comply with all terms and conditions contained in
      any ground lease, mortgage, deed of trust or other security instruments
      affecting the Property of which Manager has actual knowledge, and for
      remedying any breach thereof.  Notwithstanding the foregoing,
      however, Manager’s responsibilities under this Section shall not extend to
      matters as to which the expenditure of Owner’s funds is required but
      disapproved by Owner or such funds are not made available by
      Owner.

            

    

     

    
      	
              4.13 

            	
              Property
      Review, Tax Review and Other
  Programs.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Manager
      shall cooperate with appraisers and consultants retained by Owner to
      evaluate the Property or to appeal assessed values as part of Owner's tax
      review program, but Manager shall not be responsible for such
      undertakings.  Manager, upon request from Owner, shall promptly
      furnish Owner with copies of all assessment notices and receipted tax
      bills.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Manager
      shall comply with Owner's energy conservation and Hazardous Materials
      policies and submit energy consumption and Hazardous Materials reports for
      the Property in accordance with Owner's program for energy and Hazardous
      Materials audits and reviews.

            

    

     

    
      	
              4.14 

            	
              Licenses
      and Authorizations.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Manager
      shall obtain and keep in full force and effect all licenses, permits,
      consents and authorizations as may be necessary for the maintenance,
      operation, management, repair, servicing or occupancy of the
      Property.  All of such licenses, permits, consents and
      authorizations shall be in the name of Owner, if required in writing by
      Owner.

            

    

     

    
      	 	
              (b) 

            	
              Manager
      shall obtain and keep in full force and effect all real estate and
      business licenses and governmental authorizations, at Owner’s expense,
      (including qualifications to do business) as may be necessary for the
      proper performance by Manager of its duties and obligations under this
      Agreement.  All such licenses and authorizations shall be in the
      name of Manager.

            

    

     

    
      	
              4.15

            	
              Other
      Duties.  Subject to Budget and Owner constraints, Manager
      shall, at Owner's expense, perform all other services, which are necessary
      and appropriate to manage, operate and maintain the
      Property.

            

    

     

    
      	
              4.16

            	
              Confidentiality.  Manager
      shall hold in confidence and not use or disclose to others any
      confidential or proprietary information of Owner which is disclosed to
      Manager, including but not limited to any data, information, plans,
      programs, processes, costs, or operations of Owner, provided, however,
      that Manager’s obligations hereunder shall not apply if such information
      (a) is available to the general public or known within the real estate
      industry, or (b) is required to be disclosed pursuant to law, court order
      or subpoena.

            

    

     

    
      
        
        

      

      
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              4.17

            	
              Environmental
      Risk Management.  Owner acknowledges and understands that
      Manager is not qualified to evaluate the presence or absence of hazardous
      or toxic substances, mold, waste, materials, electromagnetic field, radon,
      or radioactive materials upon, within, above, or beneath the Property;
      compliance with environmental, hazardous or solid materials or waste laws,
      rules and regulations; or the clean-up or remediation of hazardous
      materials spills or contamination.  Accordingly, notwithstanding
      the provisions of Section 4.12 above, Manager’s obligations to Owner with
      respect to the presence of hazardous or toxic substances, mold, waste
      (including solid waste) gas, liquid or materials; electromagnetic field
      and radon; lead; asbestos; or radioactive materials upon, within, above,
      or beneath the Property (hereinafter collectively “Hazardous Materials”),
      and/or with the compliance and enforcement of federal, state, and local
      laws, rules, regulations, directives, ordinances, and requirements
      relating to Hazardous Materials (hereinafter collectively “Hazardous
      Materials Laws”) shall be subject to, conditioned upon, and limited by the
      following:

            

    

     

    
      	
               
      

            	
              (a)

            	
              To
      the extent desired by Owner, Owner shall, at Owner’s sole discretion and
      expense, obtain from an independent environmental consultant retained by
      Owner, and acceptable to Manager, an environmental assessment report on
      the Property, and shall have such assessment report periodically updated
      by such environmental consultant based upon the consultant’s inspections
      of the Property, including tenant spaces and tenants’ proposed and actual
      uses of such spaces.  The environmental assessment report and
      all updates thereto shall be delivered to the Owner and the Manager, and
      shall include evaluations by the consultant as to whether the Property or
      any tenant’s space is in violation of any Hazardous Materials Laws or
      whether the Property or any tenant’s space is one in which a specific
      disclosure regarding Hazardous Materials must be
  made.

            

    

     

    
      	
               
      

            	
              (b)

            	
              In
      no event will the Manager make an independent determination as to the
      presence or absence of Hazardous Materials, or whether the Property or any
      particular tenant space is in violation or compliance with any Hazardous
      Materials Laws.  The Manager’s sole responsibility shall be to
      act, at the direction of the Owner’s environmental consultant, if any, and
      the Owner, to (i) undertake, on the Owner’s behalf and at the Owner’s
      expense, necessary actions for the Owner to comply with Hazardous
      Materials Laws in accordance with the environmental recommendations
      contained in the environmental assessment report, and/or (ii) seek, on the
      Owner’s behalf and at the Owner’s expense, to enforce a tenant’s
      compliance with any Hazardous Materials Laws in accordance with the
      environmental consultant’s recommendations contained in the environmental
      assessment report.

            

    

     

    
      	
               
      

            	
              (c)

            	
              After
      any action on behalf of the Owner has been taken by the Manager in
      accordance with the recommendations contained in any environmental
      assessment report, if any, and the directions of the Owner’s environmental
      consultant and the Owner, the Owner’s environmental consultant shall
      re-inspect to ensure that there has been full compliance with all
      Hazardous Materials Laws.  The Manager shall not, and shall have
      no obligation to, determine whether or not the Owner, any tenants, the
      Property, or any portion thereof is in compliance with Hazardous Materials
      Laws.

            

    

     

    
      
        
        

      

      
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              (d)

            	
              The
      Manager shall have absolutely no responsibility or obligation with respect
      to the abatement, clean-up or remediation of any spill of or contamination
      from any Hazardous Materials upon, beneath, or within all, or any portion,
      of the Property, and the entire responsibility for such clean-up,
      abatement, or remediation shall lie with the Owner and the Owner’s
      environmental consultant.  The Owner agrees that, with respect
      to any abatement, clean-up or remedial action, the Owner shall employ a
      qualified and licensed environmental clean-up company to undertake such
      clean-up and remediation, and the Owner’s environmental consultant shall
      oversee the entire abatement, clean-up and remediation process and the
      obtaining of any required governmental approvals.  If the
      clean-up or remediation is the responsibility of any tenant of the
      Property and/or the Owner’s environmental consultant, the Manager shall,
      on the Owner’s behalf, require the tenant to utilize qualified and
      licensed environmental clean-up companies and that the clean-up and
      remediation is conducted to the Owner’s satisfaction and in accordance
      with all Hazardous Materials Laws, governmental laws and approvals of
      which Manager is aware.

            

    

     

    In
connection with the foregoing, Owner hereby agrees to and shall indemnify,
protect, defend, save, and hold harmless the Manager, its affiliates and each of
their respective officers, directors, representatives, agents, principals,
insurers and employees from any claim, cause of action, liability, loss, demand,
damages (including damages associated with any environmental law), fine,
penalty, injury, cost, or expense (including attorney’s fees and expenses)
arising out of or relating in any way to (i) the actions, or failure to act, by
the Manager in following Owner’s and the Owner’s environmental consultant’s
directions; (ii) the Owner’s failure or refusal to employ an environmental
consultant with respect to the Property (and in such event, Manager shall have
absolutely no responsibility or liability for enforcing compliance with
Hazardous Materials Laws at the Property, and Owner specifically releases
Manager therefrom); (iii) the failure of Owner to authorize and fully fund
expenses for the fulfillment of the recommendations contained in any
environmental assessment reports  and any updates; (iv) the acts,
omissions, or negligence of the Owner, Owner’s environmental consultant, or the
failure of such environmental consultant, to fulfill its obligations with
respect to the Property; (v) any violation, or alleged violation, of all, or any
portion, of the Property with any Hazardous Materials Laws and/or Manager’s
efforts to enforce the Property’s compliance with such laws; and (vi) any
attempt by any person, group, entity, or governmental agency to designate
Manager as “operator” or “regulated facility” under the Resource
Conservation and Recovery Act (RCRA), or a Potentially Responsible Party
(PRP) under the Comprehensive
Environmental Response, Compensation, and Liability Act (CERCLA), or
otherwise liable as a party under any other environmental law, or as a party in
any claim for contribution, cost recovery  or indemnity against
Manager, or its insurer arising out of the foregoing.

     

    
      	
               
      

            	
              (e)

            	
              The
      indemnities in Section 4.17(d) shall be immediately vested and shall
      survive the expiration or termination of this
  Agreement.

            

    

     

    
      	
              4.18

            	
              Asbestos
      and Similar Compliance Matters.  If the Property are
      subject to the Occupational Safety and Health Administration’s regulations
      relating to asbestos, or to any state law or regulation relating to
      asbestos, or to any state law or regulation relating to carcinogenic or
      toxic chemicals.  Manager shall, at Owner’s expense, comply with
      such laws and regulations as they relate to the
      Property.

            

    

     

    
      	
              4.19

            	
              Force
      Majeure; Cure Rights.  The obligations of Owner and of
      Manager under this Agreement  (except the obligation of Owner to
      provide funds to Manager for the timely payment of fees and expenses of
      Manager and expenses of the Property to be paid by Manager on behalf of
      Owner pursuant to this Agreement) shall be excused for that period of time
      that Owner or Manager, as applicable, cannot fulfill such obligations by
      reason of delays beyond its control, including without limitation acts of
      God, inclement weather, war, insurrection, terrorists acts, labor strikes,
      inability to obtain necessary materials or supplies, inability to obtain
      necessary permits, licenses or approvals, or any other event commonly
      included within the definition of force
  majeure.

            

    

     

    
      
        
        

      

      
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              ARTICLE
      V - BUDGETS, REPORTS, AND OTHER FINANCIAL
  MATTERS

            

    

     

    
      	
              5.1

            	
              Budgets
      and Business Plans.  Manager shall prepare and submit to
      Owner a proposed operating and capital budget (the "Budget") for the
      operation, repair and maintenance of the Property annually and prior to
      the Acquisition Date.  Thereafter, on or before the date
      specified each year by Owner (but not later than November 1st), Manager
      shall prepare and submit to Owner an updated Budget for the remainder of
      the current calendar year and a preliminary Budget for the next calendar
      year followed by a final Budget for the next calendar year, incorporating
      any changes requested by Owner.  Such Budgets shall: (i) be
      prepared on an accrual basis, as directed by Owner, and (ii) show a month
      by month projection of income, expenses, capital expenditures, reserves,
      and other non-recurring items.  Owner shall notify Manager
      within thirty (30) days after Owner’s receipt of the proposed Budget as to
      whether Owner approves or disapproves the proposed Budget; if Owner fails
      to notify Manager within thirty (30) days, then Manager shall notify Owner
      in writing that Manager will operate off the prior year’s Budget unless
      Owner approves or disapproves the proposed Budget within five (5) business
      days of Manager’s delivery of such second notice.  If Owner
      fails to notify Manager within such five (5) business days, the prior
      year’s Budget will be deemed approved by Owner (an expressly approved or
      “deemed approved” Budget is referred to herein as the “Approved
      Budget”).  Manager shall implement the Approved Budget and use
      its best efforts to ensure that the actual cost of operating the Property
      shall not exceed the Approved Budget.  The Approved Budget shall
      constitute an authorization for Manager to expend necessary monies to
      manage and operate the Property in accordance with the Approved Budget and
      subject to the provisions of this Agreement until a subsequent Budget is
      approved; the approval of non-recurring costs and capital improvements in
      the Approved Budget shall constitute an authorization for Manager to
      collect bids for the expenditure and present a final recommendation to
      Owner for expenditure of monies to implement such items called for in the
      Approved Budget.  The Budget shall be subject to the reasonable
      requirements of Owner’s lender(s) holding a lien on the
      Property.

            

    

     

    
      	
              5.2 

            	
              Reports.    (We
      need to see the reports and attach a
  list)

            

    

     

    
      	
               
      

            	
              (a)

            	
              Manager
      shall, during the term of this Agreement, deliver monthly reports to Owner
      relating to the management and operation of the Property for the preceding
      calendar month, not later than five (5) business days after the end of the
      preceding month.  Manager will utilize an accounting software
      application provided to Manager at Owner’s expense as directed by
      Owner.

            

    

     

    
      	
               
      

            	
              (b)

            	
              Manager’s
      accounting records and reports will be provided in Owner’s standard report
      format as it may be revised from time to
time.

            

    

     

    
      	
              5.3

            	
              Remittance
      of Funds to Owner.  No later than the 15th day of each
      calendar month Manager shall remit to Owner all funds collected as part of
      Manager's obligations hereunder in excess of (i) anticipated expenditures
      for the calendar month that Manager is authorized to make pursuant to the
      Approved Budget, (ii) any reserves approved by Owner and (iii) the
      Management Fee payable pursuant to Section 9.1.  Owner shall
      have the right to require the transfer to Owner at any time of funds in
      the Bank Account considered by Owner to be in excess of an amount
      reasonably required by Manager for disbursement and compensation purposes
      in connection with the operation and management of the
      Property.

            

    

     

    
      
        
        

      

      
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              5.4

            	
              Records.  Manager
      agrees to keep separate records, either paper or electronic, with respect
      to the management and operation of the Property, and to retain those
      records for periods specified by Owner.  The accounting method
      shall be on an accrual basis, unless Owner directs Manager to use a
      different basis.  Such books, records and accounts shall
      include, without limitation, vouchers, statements, receipted bills and
      invoices, employment records, documents, notices, agreements, contracts,
      correspondence, leases, permits, licenses, authorizations, all collections
      and disbursements related to the Property, the deposits to the Bank
      Account and other business and affairs of the Property within the
      responsibility of Manager pursuant to this Agreement.  Owner
      shall have the right, during the term of this Agreement, to inspect such
      records and audit the reports required by Section 5.2 during normal
      business hours without advance notice.  All such records, data,
      information and documents shall at all times be the property of Owner and
      shall be delivered to Owner without demand upon termination of this
      Agreement upon Manager’s receipt of a waiver and release of liability
      signed by Owner.

            

    

     

    
      	
              5.5

            	
              Duty
      of Care.  Manager shall exercise such control over
      accounting and financial transactions as is reasonably required to protect
      Owner's assets from loss or diminution due to error, negligence,
      recklessness, willful misconduct, fraud or criminal acts on the part of
      Manager or its agents, contractors, subcontractors, associates or
      employees.

            

    

     

    
      	
              5.6

            	
              Accounting
      Services.  Without limiting the generality of the
      foregoing provisions of this Article V, Manager shall provide the standard
      accounting services described in Exhibit “B”
    attached.

            

    

     

    
      	
              5.7.

            	
              Transaction
      Fee:  Owner shall pay an additional transactional
      accounting fee of $1,500 in both the first and last months of the term of
      this Agreement to cover supplemental accounting
      services.

            

    

     

    ARTICLE
VI - RESPONSIBILITIES OF OWNER

     

    
      	
              6.1

            	
              Documents
      Provided by Owner.  In order for Manager to set-up and
      establish operations, Owner shall provide to Manager such information,
      documents and certificates regarding the Property as Manager shall
      reasonably request and as Owner has in its possession, including, but not
      limited to, the following to the extent available and not already in
      Manager’s possession:

            

    

     

    
      	 	
              (a) 

            	
              A
      current and complete rent roll.

            

    

     

    
      	 	
              (b) 

            	
              An
      operating budget and capital budget for the past and current calendar
      year.

            

    

     

    
      	 	
              (c) 

            	
              Income
      cash flow report and variances from the budgets for the prior and current
      calendar year.

            

    

     

    
      	 	
              (d) 

            	
              A
      current list of brokers actively engaged in leasing the
      Property.

            

    

     

    
      	 	
              (e) 

            	
              Copies
      of lease documents and correspondence related thereto for all leases
      currently in force.

            

    

     

    
      	 	
              (f) 

            	
              All
      leases currently in dispute or
litigation.

            

    

     

    
      
        
        

      

      
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              (g)

            	
              All
      files on any litigation and/or disputes regarding any and all matters,
      including, but not limited to: equipment, furnishings, real property,
      easements, taxes, third party contracts, employer-employee relations, and
      the like.

            

    

     

    
      	 	
              (h) 

            	
              Legal
      descriptions of the Property and any
  improvements.

            

    

     

    
      	 	
              (i) 

            	
              Mortgagees’
      names and addresses, lien holders, loan payment information and the
      like.

            

    

     

    
      	 	
              (j) 

            	
              Site
      plans and specifications.

            

    

     

    
      	
               
      

            	
              (k)

            	
              An
      inventory of Owner’s personal property at the Property, including all
      tools, equipment and supplies.

            

    

     

    
      	 	
              (l) 

            	
              A
      list of all vendors.

            

    

     

    
      	
               
      

            	
              (m)

            	
              All
      pertinent books and records relating to the management, operation and
      leasing of the Property.

            

    

     

    
      	 	
              (n) 

            	
              All
      third party contracts in force.

            

    

     

    
      	
               
      

            	
              (o)

            	
              All
      insurance policies on the Property and schedules of Owner’s current and
      past insurance policies.

            

    

     

    
      	 	
              (p) 

            	
              All
      tenant and vendor insurance
certificates.

            

    

     

    
      	
               
      

            	
              (q)

            	
              Procedures
      for reporting claims and evaluating safety and loss prevention
      conditions.

            

    

     

    
      	
               
      

            	
              (r)

            	
              A
      list of the historical common area maintenance charges and operating
      expenses for the Property.

            

    

     

    The above
and any and all books and records are and shall remain the property of Owner but
shall be made available to Manager for its use and knowledge in assuming the
duties and responsibilities of Manager under this Agreement.

     

    
      	
              6.2 

            	
              Owner’s
      Obligations.  Throughout the term of this Agreement,
      Owner agrees to perform the
following:

            

    

     

    
      	
               
      

            	
              (a)

            	
              To
      pay Manager for its services in the amounts and in the manner and at the
      times described in Article X.

            

    

     

    
      	
               
      

            	
              (b)

            	
              To
      promptly reimburse Manager, upon written demand, to the full extent of all
      funds advanced by Manager for Owner’s account in carrying out the terms
      and conditions of this Agreement.

            

    

     

    
      	
               
      

            	
              (c)

            	
              To
      reimburse Manager for the cost for part-time manager (at a rate of $35,000
      per year; $2,916.67 per month).

            

    

     

    
      	
               
      

            	
              (d)

            	
              To
      communicate with Manager through Manager’s assigned manager for the
      Property at the property management
level.

            

    

     

    
      
        
        

      

      
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              (e)

            	
              To
      maintain adequate funds in the Bank Account to fund all expenditures to be
      made by Manager pursuant to the terms of this
  Agreement.

            

    

     

    
      	
               
      

            	
              (f)

            	
              To
      pay Manager for Manager’s time, excluding the time of Manager’s on-site
      personnel whose costs are reimbursed under this Agreement, expended in
      connection with any casualty, injury, lawsuit, claim, emergency service,
      hearing, or any other proceeding relating to the Property at a reasonable
      hourly rate. Furthermore, Owner shall pay Manager (excluding with respect
      to services of this type performed by Manager’s on-site staff) the above
      hourly fee in connection with any oversight services for insurance
      administration or any special audit, accounting, reporting, or consulting
      services, including coordinating or assisting in any sale, due diligence,
      or exchange process relating to the Property, or any other special
      services relating to the Property which Owner requests Manager to
      perform.

            

    

     

    
      	 	
              (g)

            	
              To
      disclose promptly to Manager, upon Manager’s request, the property and
      liability loss history of the Property as set forth in the records of the
      Owner and Owner’s insurance
carriers.

            

    

     

    
      	
               
      

            	
              (h)

            	
              To
      disclose promptly to Manager, in writing, any unresolved past or present
      claims, conditions, or occurrences which may become future claims,
      conditions, or occurrences which would not be covered by insurance
      policies maintained by Owner, including those policies required to be
      maintained by Owner under this
Agreement.

            

    

     

    
      	
               
      

            	
              (i)

            	
              To
      promptly inform Manager in writing of the existence on the Property of any
      structural defect which causes or threatens to cause a nuisance upon the
      Property or adjacent properties or poses or threatens to pose any hazard
      to the health or safety of any persons on or about the
      Property.  Owner further agrees to correct or otherwise repair,
      at Owner’s sole expense, any such structural defect within a reasonable
      time after informing Manager or being informed of the existence of any
      such defect.

            

    

     

    
      	
               
      

            	
              (j)

            	
              To
      promptly inform Manager in writing of the existence on the Property of any
      Hazardous Material, the presence of which
  either:

            

    

     

    
      	
               
      

            	
              (i)

            	
              requires
      investigation or remediation under any federal, state, or local laws,
      rules, codes, statutes, regulations, orders, notices, determinations,
      ordinances, or other requirements;
or

            

    

     

    
      	
               
      

            	
              (ii)

            	
              causes
      or threatens to cause a nuisance upon the Property or adjacent properties
      or poses or threatens to pose any hazard to the health and safety of any
      persons on or about the Property.

            

    

     

    
      	
               
      

            	
              (k)

            	
              To
      promptly take, at Owner’s sole expense, all measures, including without
      limitation, the commission of inspections, tests, studies, and remediation
      activities to insure that the Property complies with all federal, state,
      or local laws, rules, codes, statutes, regulations, orders, notices,
      determinations, ordinances, or any other requirements relating to any such
      Hazardous Materials.  Furthermore, Owner, at Owner’s sole
      expense, shall obtain and maintain and require all contractors and
      consultants to obtain and maintain liability insurance in an amount
      sufficient to adequately insure against any identified or suspected
      environmental hazard at the Property or any other hazards relating to any
      such inspections, test, studies, and remediation
      activities.  All such liability policies shall name Manager as
      an additional insured.  Manager shall be entitled to receive
      certified copies of all such policies upon
  request.

            

    

     

    
      
        
        

      

      
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                    MANAGEMENT
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              (l)

            	
              To
      promptly comply with and abide by, at Owner’s sole expense, all laws,
      rules, codes, statutes, regulations, orders, notices, determinations,
      ordinances, and any other requirements of any federal, state, municipal or
      other governmental authority, now in force or which may hereafter be in
      force, relating to the Property.

            

    

     

    
      	
               
      

            	
              (m)

            	
              To
      not make any payments, whether for commissions, bonuses or other reasons,
      directly to employees.

            

    

     

     

    ARTICLE
VII - INSURANCE

     

    
      	
              7.1 

            	
              Insurance
      Covering the Property and Its
Management.

            

    

     

    
      	
               
      

            	
              (a)

            	
              It
      is the intention of the parties hereunder to secure the broadest and most
      cost-effective insurance available to cover, defend and protect the Owner
      and Manager in the operation, improvement and enhancement of the
      Property.  This has traditionally and customarily been
      accomplished by insuring both principal parties under the same Owner’s
      liability policies.  Thus, Owner shall, at its sole expense,
      maintain in full force and effect during the term of this Agreement (i)
      “all risk” direct damage property insurance on replacement cost terms for
      the full value of the structure and improvements, including builder’s risk
      insurance and demolition, debris removal and increased cost coverage where
      applicable, to cover physical loss or damage to the Property from fire and
      extended coverage perils, including but not limited to vandalism and
      malicious mischief; and (ii) comprehensive or commercial general liability
      insurance, on an occurrence (not claims – made) form, in an amount not
      less than $35,000,000
      if in Manhattan each
      occurrence with respect to the Property and covering third-party personal
      injury, property damage, and bodily injury (including death). All primary
      and excess policies providing the coverage of items (i) and (ii), above,
      shall waive all the insurer’s right of subrogation against the Manager,
      its employees, insurers, shareholders and authorized
      agents.  All primary and excess policies providing the coverage
      of item (ii) above shall include Manager as insured by definition. Owner
      shall furnish Manager original certificates of insurance, or if requested,
      duplicate copies of policies evidencing that such insurance is in force as
      of the date of this Agreement or such date as services are performed by
      Manager, whichever is earlier.  All such insurance shall be
      placed with insurers authorized to do business in the state where the
      property is located, having a rating of A-VIII or better as reported by
      Best’s
      Property
      & Casualty Reports Key Rating Guide for the most current
      reporting period.  Such insurance shall in all respects be the
      primary insurance for claims arising at or on the Property and any policy
      of Manager shall be excess and non-contributing in all
      respects.  To the extent Owner’s property or liability policies
      contain deductibles or self-insured retentions (SIR), same shall be the
      sole responsibility of Owner for all claims arising at the property and
      Owner will cover Manager as if the policies were written as first-dollar
      insurance.  To the extent that Owner or the Property has
      insurance covering any actual or potential environmental liability at the
      property, Owner shall undertake to have Manager added as an additional
      insured to such policy(ies).  All policies will provide Manager
      with an unconditional right of 30 days’ prior written notice of the
      insurer’s decision to cancel 10 days’ notice, if cancellation is for
      non-payment of premium).  All insurance obtained by Owner or
      Manager shall be subject to the reasonable requirements of Owner’s
      lender(s) holding a lien on the
Property.

            

    

     

    
      
        
        

      

      
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              (b)

            	
              If
      it appears that Owner’s interests are better served by Manager’s
      procurement of the insurance, and if requested in writing by Owner,
      Manager shall procure such property and liability insurance for Owner, at
      Owner’s sole expense, subject to Owner’s express approval thereof, with
      both Owner and Manager covered as insureds under the insurance procured by
      Manager.

            

    

     

    
      	
               
      

            	
              (c)

            	
              Manager
      shall use reasonable efforts at all times to comply with all warranties,
      terms, and conditions of Owner’s insurance.  Manager shall
      notify Owner and Independent Insurance Advisors, Inc., c/o Trisha Brown,
      44 W. Lancaster Avenue, Suite 210, Ardmore, PA  19003,
      email:  tbrown@iiapa.com, facsimile:  610-645-0857 (
      Owner’s designated Insurance advisor) within forty-eight (48) hours after
      the Manager receives actual notice of any loss, damage, or injury, which
      in Manager’s opinion may result in a claim under such insurance and shall
      not take any action which knowingly might prejudice Owner in its defense
      to any claim based on such loss, damage, or
  injury.

            

    

     

    
      	
               
      

            	
              (d)

            	
              During
      the term of this Agreement, Manager shall maintain the following insurance
      for its business operations:

            

    

     

     

    
      	
              INSURANCE

            	
              LIMITS

            
	 	 
	
              Workers’
      Compensation

              
                And
      Employers’ Liability

              

            	
              Coverage
      A:

            
	 	
              Limits
      required by statute in the state where the property is located and where
      any operations relating to this agreement are
performed.

            
	 	 
	 	
              Coverage
      B:

              
                $500,000
      Bodily Injury by Accident (Each Accident)

                
                  $500,000
      Bodily Injury by Disease (Policy Limit)

                  
                    $500,000
      Bodily Injury by Disease (Each
  Employee)

                  

                

              

            
	 	 
	
              Commercial

              
                General
      Liability Insurance*

              

            	
              $1,000,000
      per occurrence/ $2,000,000 aggregate

            
	 	 
	
              Automobile
      (Single Limit

              
                Bodily
      Injury and Property Damage)

              

            	
              $1,000,000
      Any Auto/Accident (hired/owned and non-owned)

            
	 	 
	
              Professional
      Liability Insurance

            	
              $1,000,000
      each loss and annually in the aggregate (claims made
  form).

            
	 	 
	
              Fidelity
      /Crime

            	
              The
      total sum of two (2) months’ gross income from the
  Property

            

    

     

    
      
        
        

      

      
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                  MANAGEMENT
      AGREEMENT

                	 

        

         

         

      

    
      	
               
      

            	
              *
      If Manager is requested by Owner to procure Commercial General Liability
      Insurance for Owner as noted in 7.1 (b), above, Manager shall cause that
      policy to be endorsed to be primary and non-contributing with any other
      insurance maintained by Manager in connection with this schedule of
      “Manager’s Insurance.”

            

    

     

    
      	
               
      

            	
              Upon
      written request, Manager shall furnish Owner, at the time of execution of
      this Agreement, certificates of insurance evidencing the insurance
      coverage required under this Section (d). Such certificates shall be
      issued by the insurer(s) or its authorized agent(s) and shall provide that
      Owner will be given thirty (30) days prior written notice of cancellation
      in Manager’s coverage by underwriters or 10 days’ notice if cancelled for
      non-payment of premium.  All such policies of Manager, except
      for workers’ compensation for Manager’s employees directly involved with
      the operation of the Property (as listed in Exhibit A) shall be at
      Manager’s sole cost.  Manager may maintain such coverage through
      the use of “blanket coverage.” In cases where Owner and Manager maintain
      insurance policies that duplicate coverage for the Property, then Owner’s
      policies shall provide in all respects primary coverage, without regard to
      any “other insurance” clauses, and Manager’s insurance shall be excess and
      noncontributing insurance. The addition of Owner as an additional insured
      under any of Manager’s insurance policies shall not obligate Manager to
      provide Owner a defense or indemnity for claims not covered under any such
      policy or covered under a policy required to be maintained by
      Owner.

            

    

     

    
      	
               
      

            	
              (e)

            	
              Contractors’
      and Subcontractors’ Insurance.  Manager shall require
      that each contractor and subcontractor hired to perform work at the
      Property maintain liability insurance against risk of bodily injury,
      personal injury, and damage to property of others, and direct damage
      insurance covering physical damage to personal property belonging or
      leased or rented to it with terms and in amounts sufficient to pay all
      incurred liabilities and claim expenses and to replace such personal
      property in the event of loss, at such contractor’s and subcontractor’s
      sole cost and expense.  It is understood and agreed by Owner and
      Manager that, during periods and under circumstances of limited
      availability and/or competition in the insurance industry, (sometimes
      known as a “hard insurance market”) some of the desirable terms will not
      be available to otherwise acceptable vendors and
      contractors.  It is Manager’s practice to require these terms
      within the contracts, subcontracts, work orders and purchase orders, and
      not to alter the terms of such documents, but to grant de facto waivers
      when the terms cannot be obtained.  Manager’s objective is to
      retain the requirements for these coverage extensions within the contract
      in order to trigger their benefit when such terms again become
      available.  Manager will continue this practice for the benefit
      of Owner, provided Owner agrees that it will not hold Manager liable for
      any shortfall in the coverage terms of such contractors, subcontractors or
      vendors.  With that understanding, Manager shall require from
      contractors, subcontractors and vendors the following insurance, in the
      following minimum amounts:

            

    

     

    
      
        
        

      

      
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                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

      
        	INSURANCE	MINIMUM
      LIMITS
	 	 
	
                Workers’
      Compensation

              	
                As
      required by law in the state where property is located and where any
      operations relating to the contract are located, with waiver of
      subrogation against Owner and Manager.

              
	 	 
	Employer’s
      Liability	$1,000,000 each
      accident and as to aggregate limits.
	 	 
	Commercial General
      Liability*	$1,000,000 per
      occurrence/$2,000,000 aggregate
	 	 
	Comprehensive Auto
      Liability*	$1,000,000 (any
      auto/owned/non-owned/hired)

      

    

     

    
      	
               
      

            	
              *These
      coverages shall be primary as to Owner and Manager and will cover Owner
      and Manager as insureds for any allegation, claim, loss, damage, demand,
      or judgment, or other causes of action arising out of their presence or
      out of the contractors’ or subcontractor’s presence upon or out of
      operations or operations or work done at the Property by the contractor or
      subcontractor for or on behalf of Owner and Manager.  Owner and
      Manager shall be named as additional insureds on such all general
      liability policies both for operations and, to the extent available in the
      insurance market, for completed operations of the named insured for as
      long as Owner or Manager may be exposed to loss arising out of such
      operations.  The policies shall be written on an “occurrence”
      and not “claims-made” form basis. If contractor’s work involves hazardous
      materials or environmental abatement work, contractor will be required to
      provide evidence of Contractor’s Pollution Liability, with Owner and
      Manager as additional insureds.  If the contractor’s work
      involves professional design or engineering, special evidence of design
      professional liability (also known as E&O) coverage will also be
      required.

            

    

     

    
      	
               
      

            	
              Owner
      or Manager may require additional coverage if the work to be performed is,
      in their judgment, sufficiently large or hazardous and may waive certain
      limits or requirements on a case-by-case basis for incidental or personal
      service contracts or jobs. Before any work can begin, each contractor or
      subcontractor will submit Certificates of Insurance and endorsements in
      form and substance satisfactory to Owner or Manager as evidence of the
      coverages required.  Each liability policy certificate will
      provide for (i) cross-liability or severability of interests, covering the
      named insured for any claim brought against it by any of the Additional
      Insureds; (ii)  waiver of subrogation as against Owner and
      Manager and waiver of any right of contribution from their respective
      insurers; and (iii) if Contractor’s insurance is provided by means of a
      so-called “blanket policy,” the aggregate must apply per project, or per
      location.  Each certificate will bear an endorsement requiring
      thirty (30) days’ prior written notice of cancellation, material
      alteration, or non-renewal.  All such policies shall be issued
      by insurers with a Best’s
      rating of A-VIII or higher as reported in the most recent Property
      & Casualty Reports Key Rating Guide
  edition.

            

    

     

    
      
        
        

      

      
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                  MANAGEMENT
      AGREEMENT

                	 

        

         

         

      

    ARTICLE
VIII  -  INDEMNIFICATION AND SUBROGATION

     

    
      	
              8.1

            	
              Indemnification.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Subject
      to Section 8.2, Owner shall indemnify, defend (using counsel acceptable to
      Manager) and hold harmless Manager and its affiliates and each of their
      respective officers, directors, employees, stockholders, partners, agents,
      lenders, representatives, and contractors, and each of their respective
      successors and assigns, from and against any and all liabilities,
      obligations, claims, losses, causes of action, suits, proceedings, awards,
      judgments, settlements, demands, damages, costs, expenses, fines,
      penalties, deficiencies, taxes and fees, (including without limitation the
      fees, expenses, disbursements and investigation costs of attorneys and
      consultants) arising directly or indirectly out of or resulting in any way
      from or in connection with the Property, the management of the Property by
      the Manager, or the performance or exercise by the Manager of the duties,
      obligations, powers, or authorities herein, or hereafter granted to the
      Manager, except for those actions and omissions of Manager in relation to
      which the Manager agrees to indemnify Owner pursuant to Section
      8.1(b).

            

    

     

    
      	
               
      

            	
              (b)

            	
              Subject
      to Section 8.2, Manager agrees to indemnify and hold the Owner and its
      affiliates and each of their respective employees, officers, directors,
      and agents harmless from and against any and all costs, expenses,
      attorneys’ fees, suits, liabilities, damages, or claim for damages, in any
      way arising out of (i) any acts or omissions of Manager, its agents or
      employees which have been held to be grossly negligent and are not
      otherwise insured under property or liability policies, including
      deductibles and retentions, required to be maintained by Owner under this
      agreement; (ii) any failure of Manager to promptly perform in any material
      respect any of its obligations under this Agreement, to the extent the
      loss is not otherwise insured under property or liability policies,
      including deductibles and retentions, requires to be maintained by Owner
      under this agreement or provided such failure was not caused by Owner or
      by events beyond the reasonable control of Manager, and Owner has
      furnished to Manager sufficient funds to perform such obligations; or
      (iii) any acts of Manager beyond the scope of Manager’s authority
      hereunder.  However, it is agreed that, under no circumstances
      shall Manager be held liable to the Owner or to any other party for loss
      or damage arising out of alleged or actual terrorists
  acts.

            

    

     

    
      	
               
      

            	
              (c)

            	
              “Indemnified
      Party” and “Indemnitor” shall mean the Manager and Owner, respectively, as
      to Section 8.1(a) and shall mean the Owner and Manager, respectively, as
      to Section 8.1(b).  If any action or proceeding is brought
      against the Indemnified Party with respect to which indemnity may be
      sought under this Section 8.1, the Indemnitor, upon written notice from
      the Indemnified Party, shall assume the investigation and defense thereof,
      including the employment of counsel and payment of all reasonable
      expenses.  The Indemnified Party shall have the right to employ
      separate counsel in any such action or proceeding and to participate in
      the defense thereof, but the Indemnitor shall not be required to pay the
      fees and expenses of such separate counsel, unless such separate counsel
      is employed with the written approval and consent of the
      Indemnitor.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      indemnities in this Section 8.1 shall survive the expiration or
      termination of this Agreement.

            

    

     

    
      
        
        

      

      
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                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

    

    
      	
              8.2 

            	
              Waiver
      of Claims.

            

    

     

    
      	
               
      

            	
              (a)

            	
              Anything
      in this Agreement to the contrary notwithstanding, Owner and Manager
      hereby waive and release each other of, and from, any and all right of
      recovery, claim, action, or cause of action against each other, their
      agents, officers, and employees, for any loss or damage that may occur to
      the property, improvements to the Property, or personal property within
      the Property, by reason of fire or the elements, or other casualty or
      insured peril, regardless of cause or origin, including negligence of
      Owner or Manager and their agents, officers, and employees, to the extent
      the same is to be insured against under insurance policies carried by
      Owner or Manager (or required to be carried by Owner or Manager
      hereunder), including any deductibles or self-insured
      retentions.  Owner and Manager agree to obtain a waiver of
      subrogation from the respective insurance companies which have issued
      policies of insurance covering all risk of direct physical loss and to
      have the insurance policies endorsed, if necessary, to prevent the
      invalidation of the insurance coverages by reason of the mutual
      waivers.

            

    

     

    
      	
               
      

            	
              (b)

            	
              For
      the purposes of Section 8.1(b), 8.1(c), and 8.2, the term “Owner” shall be
      construed as meaning Owner, Owner's Representative, Asset Manager, and
      their respective affiliates, directors, officers, employees, agents, and
      representatives.

            

    

     

     

    
      ARTICLE
IX - COSTS AND EXPENSES

    

     

    
      	
              9.1

            	
              Costs
      and Expenses of Manager.  Except as otherwise expressly
      provided herein, all costs and expenses incurred by or on behalf of
      Manager in performing its obli­gations hereunder shall be borne solely
      by Manager, includ­ing, without limitation, the following expenses or
      costs in connection with the operation and management of the
      Property:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Cost
      of gross salary and wages, payroll taxes, insurance, worker's
      compensation, pension benefits and any other benefits of Manager's
      supervisory and home and regional office
  personnel;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Standard
      accounting and reporting services, as described under Exhibit B, as such
      services are considered to be within the reasonable scope of Manager's
      responsibilities to Owner, and except for such services as are provided by
      persons for whom Manager is reimbursed pursuant to Section
      9.2(a);

            

    

     

    
      	
               
      

            	
              (c)

            	
              Cost
      of forms, stationery, ledgers and other supplies and equipment used in
      Manager's home office or regional home office, except for such items as
      are specifically required for, or proprietary to, the
      Property;

            

    

     

    
      	
               
      

            	
              (d)

            	
              Cost
      or pro rata cost of telephone and general office expenses incurred on the
      Property by Manager for the operation and management of properties other
      than the Property;

            

    

     

    
      	
               
      

            	
              (e)

            	
              Cost
      or pro rata cost of data-processing equipment, whether located at the
      Manager's home or regional office;

            

    

     

    
      	
               
      

            	
              (f)

            	
              Cost
      or pro rata cost of data processing provided by computer service companies
      not performed for the property;

            

    

     

    
      
        
        

      

      
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                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

    

    
      	
               
      

            	
              (g)

            	
              Cost
      of all bonuses, incentive compensa­tion, profit sharing or any pay
      advances to employees em­ployed by Manager in connection with the
      operation and management of the Property, except for payments to
      individuals specifically approved in writing by Owner in advance; or in
      the annual budget.

            

    

     

    
      	
               
      

            	
              (h)

            	
              Cost
      of automobile purchases and/or rentals, unless the automobile is being
      provided by Owner;

            

    

     

    
      	
               
      

            	
              (i)

            	
              Costs
      attributable to claims, losses and liabilities arising from (i) any breach
      of this Agreement by Manager or (ii) the negligence, recklessness, willful
      misconduct, fraud or criminal acts of Manager's employees, agents,
      contractors, subcontractors or
associates;

            

    

     

    
      	
               
      

            	
              (j)

            	
              Cost
      of comprehensive crime insurance purchased by Manager for its own
      account;

            

    

     

    
      	
               
      

            	
              (k)

            	
              Costs
      for meals, travel and hotel accommodations for Manager's home or regional
      office personnel who travel to and from the Property, unless expressly
      authorized by Owner.

            

    

     

    
      	
              9.2

            	
              Reimbursement
      by Owner.  The following expenses or costs incurred by or
      on behalf of Manager in connection with the operation and management of
      the Property shall be reimbursable either bi-weekly (for payroll and
      personnel expenditures) or monthly (for all other property expenditures)
      by Owner by disbursement from the Bank Account to the extent they are
      within the Approved Budget or approved in writing by Owner and are
      supported by proper documentation from
  Manager:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Intentionally
      Omitted;

            

    

     

    
      	
               
      

            	
              (b)

            	
              Cost
      of Worker’s Compensation Insurance (and, when required by law, compulsory
      Non-Occupational Disability Insurance) incurred pursuant to Section
      4.3;

            

    

     

    
      	
               
      

            	
              (c)

            	
              Cost
      of telecommunications, including network or Internet connectivity and
      maintenance, computer hardware, software and maintenance; or other
      financial support services related to the preparation and performance of
      Property related financial or service requirements; and office supplies,
      postage, copier, facsimile machine, courier services, lock box and other
      banking services and local business and license
  fees.

            

    

     

    
      	
              9.3

            	
              Payment
      of Other Costs.  Manager may make the expenditures set
      forth in the Approved Budget from the Bank Account, provided that Manager
      shall not issue a check for any purchase or work in excess of the limit on
      the amount authorized for non-emergency purchases and repairs in Section
      1.4 without Owner's approval except in emergencies as authorized in
      Section 4.4.

            

    

     

    
      	
              9.4

            	
              Payment
      of Certain Charges Affecting the Property.  Manager shall
      pay all taxes and special assessments affecting the Property as they
      become due and before any delinquency date.  Owner shall pay all
      insurance premiums and mortgage payments affecting the Property, except
      that Owner reserves the right, at its option, to give written instructions
      to Manager to make any such payments from the Bank
      Account.

            

    

     

    
      	
              9.5

            	
              Insufficient
      Funds in Bank Account.  Manager shall not be required to
      expend any of its own funds for disbursements chargeable to
      Owner.  If there are insufficient funds in the Bank Account for
      a disbursement, Manager may, after notifying Owner of such insufficiency
      in writing, defer making any disbursement until Owner has furnished the
      funds necessary for such
disbursement.

            

    

     

    
      
        
        

      

      
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                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

    

    
      	
              9.6

            	
              Nonpayment.  If
      Manager fails to make any payment when required or fails to perform any
      act required under this Agreement, then Owner, after 10 days' written
      notice to Manager (or, in the case of any emergency, without notice) and
      without waiving or releasing Manager from any of its obligations
      hereunder, may (but shall not be required to) make such payment or perform
      such act.  Owner shall have (in addition to any other right or
      remedy) the right to offset all costs and expenses incurred in exercising
      its rights under this Section 9.5 against any sums due or to become due to
      Manager, including, without limitation, the Management Fee and any costs
      and expenses reimbursable by Owner pursuant to Section
      9.1.

            

    

     

    ARTICLE
X - COMPENSATION

     

    
      	
              10.1

            	
              Management
      Fee.  Owner shall pay Manager as compensation for the
      management services rendered hereunder a management fee (the "Management
      Fee") at the rate specified in Section 1.7.  Such Management Fee
      shall be payable during the month earned.  Manager shall
      withdraw such Management Fee from the Bank Account and shall account for
      it as required by Section 5.3.  In the event the Owner fails to
      pay Manager (or fails to make fund available to Manager in the Bank
      Account to pay Manager) the Management Fee or any reimbursement provided
      for in this Agreement within forty (40) days of the date due, Manager
      shall give Owner written notice of the expiration of such forty (40) day
      period and if Owner has not paid Manager or made funds available in the
      Bank Account to pay Manager within five (5) days of delivery of such
      written notice to Owner, the Owner will be charged a one (1%) percent late
      processing fee.

            

    

     

    
      	
              10.2

            	
              Construction
      Management Services.  Owner shall pay Manager as
      compensation for any construction management or capital improvement
      services requested by Owner a fee as set forth in the attached
      Construction Management Addendum (Exhibit C).  If Manager is not
      paid for construction management services, Manager shall have no
      obligation to supervise, bid Capital or Tenant Improvement work, collect
      lien releases, or to obtain certificates of insurance from General and/or
      Subcontractors.

            

    

     

     

    ARTICLE
XI - TERMINATION

     

    
      	
              11.1

            	
              Termination
      of Agreement.  This Agreement may be terminated prior to
      the expiration of the initial term or of any renewal term, as the case may
      be, on the following terms and conditions, it being understood and agreed,
      however, that termination shall relieve neither Owner nor Manager from
      liabilities or claims accruing and arising up to and including the date of
      termination:

            

    

     

    
      	
               
      

            	
              (a)

            	
              Owner
      shall have the right to terminate this Agreement in the event that Manager
      fails in any material respect to keep, observe or perform any covenant,
      agreement, term or provision of this Agreement, to be kept, observed, or
      performed by Manager, and such default continues for a period of fifteen
      (15) days after written notice thereof by Owner to
  Manager.

            

    

     

    
      	
               
      

            	
              (b)

            	
              In
      the event that the Property is sold to a party which is not affiliated
      with Owner, Owner shall have the right to terminate this Agreement with
      thirty (30) days’ prior written notice to
  Manager.

            

    

     

    
      
        
        

      

      
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                    MANAGEMENT
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              (c)

            	
              Owner
      shall have the right to terminate this Agreement if a petition for
      bankruptcy, reorganization or rearrangement is filed under any federal or
      state bankruptcy or insolvency laws by Manager, or if any such petition is
      filed against Manager and not removed or discharged within sixty (60) days
      thereafter.

            

    

     

    
      	
               
      

            	
              (d)

            	
              Manager
      shall have the right to terminate this Agreement in the event Owner fails
      in any material respect to keep observe or perform any covenant,
      agreement, term or provision of this Agreement to be kept observed, or
      performed by Owner and such default continues for a period of fifteen (15)
      days after written notice thereof by Manager to Owner, or if Owner
      materially fails to comply with any law, regulation or ordinance relating
      to or affecting Owner’s ownership of the
  Property.

            

    

     

    
      	
               
      

            	
              (e)

            	
              If
      any building on the Property is destroyed and Owner, for any reason,
      elects not to rebuild the building, then this Agreement shall terminate as
      of the date of notice to Manager that Owner has elected not to rebuild the
      building after such destruction.

            

    

     

    
      	
               
      

            	
              (f)

            	
              In
      the event there is a condemnation of all or any substantial part of the
      Property, then this Agreement shall automatically terminate as of the date
      of such taking.

            

    

     

    
      	
               
      

            	
              (g)

            	
              Owner
      or Manager may terminate this Agreement without cause at any time by
      providing the other with 60 days’ prior written
  notice.

            

    

     

    
      	
              11.2

            	
              Non-Solicitation.  If
      this Agreement is terminated pursuant to Sections 11.1(b), 11.1(d) or
      11.1(g), then Owner and, with respect to Section 11.1(b), any purchaser of
      the Property, may not, directly or indirectly, for a period of one year
      following the date of termination, employ or solicit for employment any of
      Manager’s employees with whom Owner had contact in connection with this
      Agreement prior to the date of termination. Owner acknowledges and agrees
      that a breach of the provisions of this Section 11.2 could not adequately
      be compensated by money damages, and, therefore, Manager shall be
      entitled, in addition to any other right and remedy available to it, to an
      injunction restraining any breach or threatened breach, and Manager shall
      not be required to post a bond in any proceeding brought for such
      purpose.  Owner further acknowledges and agrees that the
      provisions of this Section 11.2 are necessary and reasonable to protect
      Manager in the conduct of its business.  Nothing herein shall be
      construed as prohibiting Manager from pursuing any other remedies, at law
      or in equity, for any such breach or threatened
    breach.

            

    

     

     

    ARTICLE
XII - MISCELLANEOUS

     

    
      	
              12.1

            	
              Status
      of Manager.  It is the intention of the parties to create
      a relationship wherein Manager is an agent in the management, operation
      and maintenance of the Property.  Nothing herein contained shall
      be construed as creating the relationship of employer-employee or
      establishing any partnership or joint venture arrangement between Owner
      and Manager.

            

    

     

    
      	
              12.2

            	
              Notices.  Any
      statement, notice, recommendation, request, demand, consent or approval
      under this Agreement must be in writing and personally delivered or sent
      by overnight courier service, or sent by United States registered or
      certified mail, postage prepaid, return receipt requested, and shall be
      deemed to have been given upon the date of personal delivery or the next
      business day following deposit with an overnight courier or five days
      after deposit in the United States mail, provided that in the case of
      communications sent by overnight courier service or United States
      registered or certified mail, the communication is addressed as set forth
      in Section 1.5 if sent to the Owner and as set forth in Section 1.6 if
      sent to Manager.  Either party may, by written notice, designate
      a different address.

            

    

     

    
      
        
        

      

      
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                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

    

    
      	
              12.3

            	
              Ownership
      of Fixtures and Personal Property.  Manager acknowledges
      that Owner owns all fixtures and personal property situated on or about
      the Property and used in or necessary for the operation, maintenance and
      occupancy of the Property (including, without limitation, any personal
      property purchased by Manager pursuant to Section 4.6), except for such
      items as are purchased by Manager out of its own funds and for which it is
      not reimbursed by Owner.

            

    

     

    
      	
              12.4

            	
              Assignment.  This
      Agreement shall not be assignable by Manager without the express prior
      written consent of Owner, except that Manager may assign this Agreement
      without such consent to an affiliate of Manager pursuant to a merger or
      reorganization of its parent company, or any subsidiary of the parent or
      Manager.  This Agreement shall be for the benefit of and shall
      be binding upon the heirs, successors and assigns of the parties
      hereto.

            

    

     

    
      	
              12.5

            	
              Severability.  Each
      provision of this Agreement is intended to be severable.  If any
      term or provision hereof or the application thereof to any entity or
      circumstance shall be determined by a court of competent jurisdiction to
      be illegal or unenforceable for any reason whatsoever, such term,
      provision or application thereof shall be severed from this Agreement and
      shall not affect the validity of the remainder of this Agreement or the
      application of such term or provision to any other entity or
      circumstance.

            

    

     

    
      	
              12.6

            	
              Costs
      of Suit.  If Owner or Manager shall institute any action
      or proceeding against the other relating to this Agreement, the
      unsuccessful party shall reimburse the successful party for its
      disbursements incurred in connection therewith and for its reasonable
      attorneys' fees, as fixed by the
court.

            

    

     

    
      	
              12.7

            	
              Waiver.  No
      consent or waiver, express or implied, by either party to or of any breach
      or default by the other party in the performance of its obligations
      here­under, shall be valid unless in writing.  No such
      consent or waiver shall be deemed or construed to be a consent or waiver
      to or of any other breach or default in the performance by such other
      party of any other obligations of such party hereunder.  The
      failure of any party to declare the other party in default shall not
      constitute a waiver by such party of its rights hereunder, irrespective of
      how long such failure continues.  The granting of any consent or
      approval in any one instance by or on behalf of Owner shall not be
      construed to waive or limit the need for such consent in any other or
      subsequent instance.

            

    

     

    
      	
              12.8

            	
              Remedies
      Cumulative.  No remedy herein con­tained or otherwise
      conferred upon or reserved to Owner shall be considered exclusive of any
      other remedy, but such remedy shall be cumulative and in addition to every
      other remedy given hereunder or now or hereafter existing at law, in
      equity or by statute.  Every power and remedy given by this
      Agreement to Owner may be exercised from time to time and as often as
      occasion may arise or as may be deemed
  expedient.

            

    

     

    
      	
              12.9

            	
              Entire
      Agreement.  This Agreement contains the entire agreement
      between the parties and supersedes all prior oral or written agreements,
      understandings, representations and covenants, to the extent that they are
      inconsistent with this
Agreement.

            

    

     

    
      
        
        

      

      
        Page
24

        
          

        

      

      
        
        

      

      
        
           

          
            		
                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

    

    
      	
              12.10

            	
              Amendment.  This
      Agreement may not be amended or modified except by an agreement in writing
      signed by the party against whom enforcement of such change or
      modification is sought.

            

    

     

    
      	
              12.11

            	
              Governing
      Law.  This Agreement and the obligations of Owner and
      Manager shall be governed by, and construed and enforced in accordance
      with, the laws of the state where the Property is
      located.

            

    

     

    IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.

     

    
      	
              Owner:     ARC NYRR
      61st Street
      LLC

               
      a Delaware limited liability company

               

                By:                                                  
                       

                Print
      Name:                                                  

                Its                                                            
           

            	
              Manager:    
      CB
      RICHARD ELLIS, INC.,

               
      a Delaware corporation

               

              
                  By:                                      
                                   

                  Print
      Name:                                                  

                  Its                                                            
           

              

            

    

     

    
      
        
        

      

      
        Page
25

        
          

        

      

      
        
        

      

    

    
      
         

        
          		
                  MANAGEMENT
      AGREEMENT

                	 

        

         

         

      

    

    EXHIBIT
A

     

    SCHEDULE
OF EMPLOYEES

     

     

    This
Exhibit A is attached to and made a part of that certain Real Estate Property
Management Agreement (the "Agreement") dated as of                    
 
executed between                                               
("Owner"), and CB Richard Ellis, Inc. ("Manager").

     

    This
schedule is to be updated and submitted for Owner's approval pursuant to Section
4.3 of the Management Agreement prior to employment of personnel for
Property.

     

     

    (By
Job Category and Wages)

     

     

    Indicate by
underlining all employees previously approved.

     

     

    
      	
              Job

              Title

            	
              No.
      of

              Employees

            	
              Maximum

              Wage/Wk.1

            	
              Fringe

              Benefits

            	
              No.
      of

              Hrs. Wk.

            	
              Total
      $

              Amt.
  Wk

            

    

     

     

    
      	 	
              Total
      $ Per Month

               

              Total $ Per Annum

            	
              $ TBD as
      per Budget

               

              $ TBD as per
    Budget

            

    

     

     

    
      
        

      

      
        
          
          

        

        
          -26-

          
            

          

        

        
          
          

        

        
          
             

            
              		
                      MANAGEMENT
      AGREEMENT

                    	 

            

             

             

          

        

      

    

    EXHIBIT
B

     

    ACCOUNTING
SERVICES

     

     

    Standard
Reporting

     

    Manager
shall keep and maintain, or shall cause to be kept and maintained on a
Fiscal/Calendar Year (as previously defined) proper and accurate books, records
and accounts reflecting all of the financial affairs of the property transacted
by Manager within an accounting system directed by Owner.  Owner shall
have the right at all times during normal business hours to examine such books
and accounts at the office of the Manager’s accounting department and to make
such copies or extracts thereof as Owner shall desire.

     

    Manager’s
accounting records and reports will be provided in Owner’s standard report
format.  Manager shall prepare and submit the following reports and
statements, which reports shall (i) be on an accrual basis unless Owner directs
Manager to use a different basis and, (ii) be prepared on the Owner’s MRI
Platform, or other system used by Owner.

     

    On a
monthly basis, the Manager will furnish a report summarizing the financial
operations of the Property (“Financial Report”).  This report will be
due to the owner on the 5th
Business Day of the month and will include operations for the previous month
end.  The Financial Report will include the following:

     

    
      	 	
              (a)

            	
              Balance
      Sheet and Reconcilliation of Assets and
  Liabilities

            

    

    
      	 	
              (b)

            	
              Actual
      vs. Prior Month Operating Statement

            

    

    
      	 	
              (c)

            	
              Actual
      vs. Budget Operating Statement

            

    

    
      	 	
              (d)

            	
              Accounts
      Receivable Aging Report and report of follow-up with tenants and action
      items for all past due receivables

            

    

    
      	 	
              (e)

            	
              Rent
      Roll

            

    

    
      
        	 	
                (f)

              	
                Cash
      Receipts Detail

              

      

    

    
      	 	
              (g)

            	
              Cash
      Disbursement Detail

            

    

    
      	 	
              (h)

            	
              Security
      Deposit Ledger

            

    

    
      
        	 	
                (i)

              	
                Current
      Month General Ledger

              

      

    

    
      
        	 	
                (j)

              	
                Current
      Month Bank Reconciliation

              

      

    

    
      	 	
              (k)

            	
              Lock
      box and other banking services

            

    

    
      
        	 	
                (l)

              	
                Monthly
      Closing Process and Procedures provided by
Owner

              

      

    

    
      	 	
              (m)

            	
              Year
      end and/or periodic Tenant CAM
  Reconciliation/True-Ups

            

    

    
      	 	
              (n)

            	
              SAS-70
      Report Annually

            

    

     

    Non-standard
Accounting Services

     

    If Owner
requests Manager to perform accounting services in addition to the standard
services provided by the Manager, there shall be an additional
charge.  The cost shall be mutually agreed upon in writing prior to
the delivery of these additional services.  The following are examples
of additional services/reporting information that would necessitate an
additional charge to the Owner:

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

      
        
           

          
            		
                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

    

    
      	 	
              (a)

            	
              Issuance
      of specially formatted or non-standard reports in place of or in addition
      to standard reporting.

            

    

    
      	 	
              (b)

            	
              Management
      of negative cash flow for the
property.

            

    

    
      	 	
              (c)

            	
              Management
      of manual check signing process or owner co-signature requirements instead
      of our standard facsimile signature cartridge.  Checks will be
      signed on facsimile signature, but will be signed manually if this feature
      is not in place at the commencement of this
  Agreement.

            

    

    
      	 	
              (d)

            	
              Accounting
      for acquisition or disposition related activity in addition to standard
      monthly operating activity.  This might include accounting for
      prior Owner’s receivables, or post closing
  pro-rations.

            

    

    
      	 	
              (e)

            	
              Management
      of loan funding process with Owner and
lender.

            

    

    
      
        	 	
                (f)

              	
                Maintenance
      of detailed fixed asset sub-ledgers and corresponding depreciation and
      amortization schedules.

              

      

    

    
      	 	
              (g)

            	
              Maintenance
      of “Ownership level” or Joint Venture transactions of the property books
      and records.

            

    

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    
      
         

        
          		
                  MANAGEMENT
      AGREEMENT

                	 

        

         

         

      

    

    EXHIBIT
C

     

    CONSTRUCTION
MANAGEMENT ADDENDUM

     

    THIS
ADDENDUM APPLIES ONLY IF IT IS SEPARATELY SIGNED BY OWNER AND
MANAGER

     

     

    THIS
ADDENDUM is attached to and is a part of a Real Estate Property Management
Agreement dated as of                       between                                               
("Owner"), and CB Richard Ellis, Inc. ("Manager").

     

    
      	
              1.

            	
              Construction
      Management Fee:  In addition to the Management Fee,
      Manager shall be entitled to a construction management fee for the
      construction management services described in Section 3 of this
      Addendum.  The fee shall be a percentage of the cost of
      construction as outlined in Section 2 of this Addendum, payable 100% upon
      completion, or periodically based upon percentage of completion, as the
      parties may agree.  As used herein, “cost of construction” shall
      include:  all labor and supervision costs; costs of materials
      and supplies; contract price for all construction work performed by
      general contractors and subcontractors; fees, taxes or other charges
      levied by governmental or quasi-governmental agencies in connection with
      the issuance of all authorizations, approvals, licenses and per­mits
      necessary to undertake construction of the project; cost of all equipment
      and fixtures provided for in drawings and specifications; concrete,
      welding and other testing expenses; and, all architectural and engineering
      fees or costs.

            

    

     

    
      	
              2. 

            	
              Construction
      Management Fee Schedule:

            

    

     

    
      	Construction
      Cost	Fee
      - % of Construction Cost
	$0 –
    $25,0000	
              No
    Cost

            
	$50,001 –
      $200,000	
              5%

            
	$200,001 -
      $400,000	
              4%

            
	$400,001 -
      $600,000	
              3%

            
	Greater than
      $600,000	
              By
      Negotiation

            

    

     

     

    
      	
              3.

            	
              Description
      of Construction Management Services.  Construction
      management shall consist of coordinating, overseeing and expediting the
      completion of tenant improvements and other capital construction, and
      shall include, but not be limited to, the
  following:

            

    

     

     

    Project
Team Composition & Pre-Construction Activities

     

    
      	
               
      

            	
              a.

            	
              Discuss
      Strategy for Team Composition with Client and Leasing
  Team

            

    

    
      	
               
      

            	
              b.

            	
              Assist
      Leasing Team in conceptual budgets for
Prospects

            

    

    
      	
               
      

            	
              c.

            	
              Research
      existing vendors and perform pre-qualifications, (RFQ’s), for
      recommendation to Client

            

    

    
      	
               
      

            	
              d.

            	
              Recommend
      specialized team members in required
disciplines

            

    

    
      	
               
      

            	
              e.

            	
              Issue
      Requests for Proposals (RFP’s) to Architects, Engineers, and other
      Specialty Contractors as required by
  project/Client

            

    

    
      	
               
      

            	
              f.

            	
              Receive
      and analyze RFP responses and submit recommendation for Client review,
      approval and signature of
contract(s)

            

    

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

      
        
           

          
            		
                    MANAGEMENT
      AGREEMENT

                  	 

          

           

           

        

      

    

    
      	
               
      

            	
              g.

            	
              Prepare
      and Manage General Contractor bid and contract
  process

            

    

    
      	
               
      

            	
              h.

            	
              Receive
      and analyze construction proposals and submit recommendation for Client
      review, approval and signature of
contract

            

    

    
      	
               
      

            	
              i.

            	
              Prepare
      analysis of Conceptual Plans to confirm project requirements and
      opportunities for Value
Engineering.

            

    

    
      	
               
      

            	
              j.

            	
              Direct
      assistance with requesting release of Vendor
  reserves.

            

    

     

     

    Design
and Construction Management

     

    
      	
               
      

            	
              a.

            	
              Prepare
      analysis of Design Plans and subsequent Construction Documentation to
      confirm project requirements and opportunities for Value
      Engineering

            

    

    
      	
               
      

            	
              b.

            	
              Develop
      Landlord/Building Management coordination plan for project
      requirements

            

    

    
      	
               
      

            	
              c.

            	
              Establish
      and attend periodic site meetings with Project
  Team

            

    

    
      	
               
      

            	
              d.

            	
              Monitor
      Project Schedule and progress of work and report to
  Client

            

    

    
      	
               
      

            	
              e.

            	
              Monitor
      Budget and report to Client

            

    

    
      	
               
      

            	
              f.

            	
              Accountability
      on Project Over-runs

            

    

    
      	
               
      

            	
              g.

            	
              Monitor
      field activities and report to
Client

            

    

    
      	
               
      

            	
              h.

            	
              Review
      monthly requests for payment from Project
  Vendors

            

    

    
      	
               
      

            	
              i.

            	
              Monitor
      completion of field inspections

            

    

    
      	
               
      

            	
              j.

            	
              Advise
      Client as to expected award of TCO

            

    

    
      	
               
      

            	
              k.

            	
              Conduct
      Punch List inspection with Architect and Client, (Architect to issue
      written documentation)

            

    

    
      	
               
      

            	
              l.

            	
              Monitor
      final sign-off of Improvements

            

    

    
      	 	
              m.

            	
              Manage
      Close-Out of Project Vendor
contracts

            

    

     

     

    THIS
CONSTRUCTION MANAGEMENT ADDENDUM is executed by the parties concurrently with
the Real Estate Property Management Agreement referred to above.

    
       

      
        	
                Owner:

                 

                                                                                                            

                 

                 

                By:

                 

                Print Name:                                                  
                           

                Its:                                                                       
                     

              	
                Manager:

                 

                CB RICHARD
      ELLIS, INC.,

                a Delaware corporation

                 

                
                  By:

                   

                  Print Name:                                                  
                           

                  Its:                                                                       
                     

                

              

      

       

      
        
          
          

        

        
          -30-Unassociated Document

    
      EXHIBIT
10.11

       

      *
                                     
*
                                     
*

       

      
        	
                STATE
      OF NEW YORK

              	
                )

              	 
      
	 
      	
                )

              	
                ss.:

              
	
                COUNTY
      OF NEW YORK

              	
                )

              	 
      

      

      
      

      On the
24th
day of July in the year 2008 before me, the undersigned, a Notary Public in and
for said State, personally appeared Bunny Williams a/k/a Bruce B. Williams,
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
individual(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

       

      
        
          	
                  By:  

                	
                  /s/ Michael S. Insel

                
	 
      	
                  Notary

                

        

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      
 

      AGREEMENT
OF LEASE

       

      This
Agreement of Lease (the “Agreement”) dated July 24, 2001 made by and between
Urban Development Partners (61), LLC (“Landlord”), having an address c/o Urban
Management Partners, LLC, The Urban Center, 457 Madison Avenue, New York, New
York 10022, and Bunny Williams Incorporated (“Tenant”), having an address of 306
East 61st Street,
New York, New York 10021.

       

      WITNESETH:

       

      WHEREAS,
306 East 61 Corp. (the “Original Landlord”), predecessor in interest to
Landlord, and Tenant entered into that certain lease dated as of October 20,
1995, as stated on the first page of the printed portion thereof and dated
September 1, 1995, as stated on the first page of the Rider thereto, which lease
was modified by a letter agreement dated January 6, 1997 between Original
Landlord and Tenant.  The lease, as modified as aforesaid, is
hereinafter collectively referred to as the “Original Lease”; and

       

      WHEREAS,
pursuant to the Original Lease, Landlord leased to Tenant and Tenant leased from
Landlord certain premises more particularly described in the Original Lease
(hereinafter referred to as the “Demised Premises”) in the building located at
and known as 306 East 61st Street,
New York, New York (“Building”); and

       

      WHEREAS,
by written notice heretofore given by the Original Landlord to Tenant, the
Original Lease is cancelled as of August 31, 2001, which cancellation the
parties acknowledge and agree shall constitute a valid, binding and irrevocable
termination of the Original Lease as of August 31, 2001; and

       

      WHEREAS,
the parties hereto desire to enter into a new Lease on the same terms and
conditions as were set forth in the Original Lease, except as hereinafter
provided.

       

      Now,
therefore, in consideration of the premises and for other good and valuable
consideration, the receipt and legal sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

       

      1.           All
capitalized terms used but not defined in this Agreement shall be deemed to have
the same meanings as are ascribed to them in the Original Lease.

       

      2.           Landlord
hereby leases to Tenant, and Tenant hereby leases from Landlord, the Demised
Premises for a term (the “New Term”) beginning on September 1, 2001 through and
including August 31, 2011, upon all of the same terms and conditions as are set
forth in the Original Lease, which are incorporated herein by reference, except
that:

       

      (a)           Paragraph
41(a) of the Original Lease is hereby deleted;

       

      (b)           Beginning
on September 1, 2001 through and including August 31, 2002, the base rent shall
be $356,250 per annum.  Beginning on September 1, 2002 and on each
subsequent September 1 thereafter during the New Term (the “Rent Change Date”),
the annual base rent shall increase to an amount equal to the product obtained
by multiplying the base rent for the 12-month period immediately preceding the
Rent Change Date by 102.5%.  Paragraph 41(b) of the Original Lease is
hereby modified accordingly and Paragraphs 41(c) and 41(d) of the Original Lease
are hereby deleted.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (c)           Paragraphs
56, 58, 68, 83, 106, and 109 of the Original Lease are hereby
deleted.

       

      (d)           The
last sentence of paragraph 59(2) of the Original Lease is hereby
deleted.

       

      (e)           Paragraph
55(a) of the Original Lease is hereby modified by (i) deleting the words “July
1, 1995 to June 30, 1996” and substituting therefor the words “January 1, 2001
to December 31, 2001” and (ii) providing that the percentage of any increases in
taxes over the base year payable by Tenant shall be fifteen and one-half percent
(15.5%).

       

      (f)           Paragraph
52 of the Original Lease is modified as follows:

       

      Subparagraph
(a) is hereby deleted and the following is substituted therefor:

       

      (a)
Supplementing Paragraph 11 of the Original Lease, Landlord hereby consents to
occupancy of a portion of the Demised Premises by Nasser Nakib Architect,
subject to, and in accordance with, the terms of that certain Memorandum of
Sublease, dated July 17, 2001 (the “Nasser Nakib Sublease”), between Tenant and
said Nasser Nakib Architect, a fully executed copy of which Nasser Nakib
Sublease is attached hereto.  Tenant shall not extend the term of the
Nasser Nakib Sublease or sublease additional space thereunder or enter into a
new sublease with said Nasser Nakib Architect or any other party(ies) for all or
any portion of the Demised Premises or assign its interest in this Agreement
without Landlord’s prior consent, such consent not to be unreasonably withheld,
delayed or conditioned.  Upon Tenant’s request for Landlord’s consent,
Tenant shall submit to Landlord, in writing, a counterpart of the proposed
assignment or sublease, as the case may be, and the name of the proposed
assignee or subtenant, the name and character of its business (which business
must be in related interior design area and/or the sale of furniture,
furnishings and/or decorative merchandise), the terms of the proposed assignment
or sublease and such information as to the proposed assignee’s or subtenant’s
financial responsibility and standing and any other information Landlord may
reasonably request, including, without limitation, prior 2 years’ tax returns,
prior 2 years’ financial statements, a bank reference, and a copy of the
previous month’s bank statement.  Upon receipt of such requested
information from Tenant, Landlord shall have the option, to be exercised by
written notice within 20 days after Tenant’s request for consent, to either (i)
terminate this Lease as of the day immediately preceding the proposed
commencement date of the assignment or sublease, as the case may be, or (ii)
grant or withhold its consent (provided that there is a reasonable basis
therefor) to such proposed assignment or sublease, as the case may
be.  Notwithstanding anything to the contrary set forth above in this
paragraph (a), Landlord shall only have the right to terminate this Lease in
connection with a proposed sublease of a portion of the Demised Premises if, and
only if, the rent to be paid by the proposed sublessee to Tenant pursuant to the
proposed sublease shall exceed, on a dollar per square foot basis, the rent then
payable by Tenant to Landlord for the same space.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      (ii)
Subparagraph (c) is modified by (A) deleting in the first sentence thereof after
the word “provided” the words “that in Landlord’s sole discretion”; and (B)
inserting in Sub-subparagraph (i) thereof after the word “judgment” the words
“reasonably exercised”.

       

      (iii)
Subparagraph (g) is hereby deleted in its entirety and the following is
substituted therefor:

       

      If
Landlord fails to consent to Tenant’s proposed sublease or sublease amendment
with respect to the Demised Premises or to a proposed assignment of Tenant’s
interest in this Lease and either Landlord or Tenant is found by a court of
competent jurisdiction to have acted in bad faith, then the party found to have
so acted in bad faith shall reimburse the other party for all of the successful
party’s legal fees (including, without limitation, reasonable attorneys’ fees
and disbursements and court filing fees) incurred by the successful
party.  Except as set forth in the immediately preceding sentence, the
provisions of Paragraph 74 of the Lease remain in full force and
effect.

       

      (g)          Paragraph
44(a) of the Original Lease is hereby modified by deleting the fourth (4th)
sentence thereof and substituting in its place and stead the
following:

       

      “Commencing
on September 1, 2001, Tenant shall pay to Landlord, as additional rent, the sum
of $50.00 per month, which sum represents Tenant’s agreed-upon share of the cost
of Landlord’s air conditioning maintenance contract in respect of the air
conditioning unit servicing the demised premises.  Notwithstanding the
foregoing, Tenant acknowledges and agrees that the air conditioning unit
servicing the showroom area of the Demised Premises located in the northwest
portion of the Demised Premises was installed by Tenant and Tenant, at Tenant’s
sole cost and expense, shall be responsible for the maintenance of
same.”

       

      (h)          Paragraph
32 of the Original Lease is hereby modified by changing the amount of the
security to be held by Landlord from $17,901.67 to $59,375.00.  Upon
Tenant’s execution of this Agreement, Tenant shall deliver to Landlord the sum
of $41,473.33, to increase the amount of security currently being held by Owner
to the amount required by this Agreement to be maintained by Tenant as security
under this Agreement (i.e. $59,375.00).

       

      (i)           Paragraph
57 of the Original Lease is hereby deleted in its entirety and the following new
Paragraph 57 is substituted therefor:

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      In the
event that the cost to Landlord for fuel oil and/or gas for heating and/or hot
water in the Building during any calendar year during the New Term shall exceed
the cost incurred by Landlord for the fuel oil and/or gas for heating and/or hot
water in the Building during the calendar year 2001, then Tenant shall pay to
Landlord, as additional rent, 7.75% of each and every such
increase.  Landlord shall provide to Tenant, no later than three
months following the end of each calendar year during the New Term (including
the calendar year 2001), copies of all bills and other reasonable evidence
setting forth Landlord’s costs for fuel oil and/or gas for heating and/or hot
water during such year and the year 2001, together with Landlord’s statement of
the amount due from Tenant, and Tenant shall, within twenty (20) days after the
receipt of such evidence and statement, pay to Landlord such
amount.  Paragraph 108 of the Original Lease is modified to the extent
of deleting the words “at no expense to Tenant” in the second
sentence.  Because the additional rent for fuel oil and/or gas for
heating and/or hot water for the first eight months of 2011 cannot be calculated
until September 2011, commencing January 1, 2011 and each month thereafter until
the expiration date of this Agreement, Tenant shall pay to Landlord an estimated
amount as additional rent for fuel oil and/or gas for heating and/ or hot water
for calendar year 2011 equal to one-twelfth of the payment calculated on the
prior calendar year.  In September of 2011 the payments for calendar
year 2011 shall be adjusted by comparing the actual costs for fuel oil and/or
gas for heating and/or hot water for the first eight months for calendar year
2011 to the actual costs for fuel oil and/or gas for the first eight months of
calendar year 2001.

       

      (j)           Paragraph
110 of the Original Lease is modified as follows:

       

      The
introductory clause is revised to read:

      “Notwithstanding
anything to the contrary set forth in paragraphs 11 or 52 of the Original Lease,
as amended by this Agreement, Tenant shall have the unrestricted right at any
time and times through the term of this Lease to sublease or license the Demised
Premises or assign Tenant’s interest in this lease without having to obtain
Landlord’s consent or giving rise to Landlord’s right to recapture all or a part
of the Demised Premises as provided in Paragraph 110 of the Original Lease,
subject to the following paragraphs being added to Subparagraphs a and b of
Paragraph 110:”

       

      a.:           “Such
sublease, license or assignment shall not be effective until Tenant complies
with the following:

      (1)           no
subletting shall be for a term ending later than one day prior to the expiration
date of this New Lease;

      (2)           no
sublease, license or assignment shall be valid, and no subtenant, assignee or
licensee shall take possession of the Demised Premises or any part thereof,
until an executed counterpart of such sublease, assignment or license has been
delivered to Landlord;

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      (3)           each
sublease or license shall provide that it is subject and subordinate to this
Agreement and to the matters to which this Agreement is or shall be
subordinate;

      (4)           in
the case of an assignment the assignee shall assume all of the obligations of
this Agreement on the part of Tenant to be performed or observed;

      (5)           the
proposed sublessee, assignee, or licensee is not a party who dealt with Landlord
or Landlord’s agent (directly or through a broker) with respect to space in the
Building during the six (6) months immediately preceding the effective date of
such sublease, assignment or licensee;

      (6)           the
rent, additional rent or other charges collectible by Tenant under the sublease
or license shall not be less than the rent to be paid by the Tenant pursuant to
this Agreement on a dollar per square foot basis for the space occupied or used
by the sublessee or license; (d) and any amount in excess of the rent to be paid
by the Tenant pursuant to this agreement on a dollar per square foot basis,
which is payable by such sublessee or licensee, may be collectible by Landlord
as additional rent; and

      (7)           Tenant
shall not advertise or list with a broker space to be sublet, assigned or
licensed, either directly or indirectly through a broker or other agent, or list
with a broker, at a rental or fee amount that is less than the then current
market price for comparable space in the Building that is then currently vacant
or will become available for leasing as a result of a lease or leases in the
Building expiring within six months from the date Tenant seeks to assign,
sublease or license space in the Demised Premises.

       

      b.:           “Such
sublease, license or assignment shall not be effective until Tenant complies
with the following:

      (8)           In
the case of a sublease or license of 75% or more of the useable floor area of
the Demised Premises or an assignment of the Lease, the sublessee, assignee or
licensee, as the case may be, shall maintain a first class quality business in
the manner as presently being maintained by Tenant on the date of execution of
this Agreement.”

       

      3.           Landlord
and Tenant hereby warrant to each other that they have had no dealings with any
real estate broker or agent in connection with the negotiation of this Agreement
and that they know of no real estate broker or agent who is entitled to a
commission in connection herewith.  Each party agrees to indemnify and
defend the other party against and hold the other party harmless from any and
all claims, demands, losses, liabilities, lawsuits, judgments, costs and
expenses (including, without limitation, reasonable attorneys’ fees and
disbursements) with respect to any leasing commission or equivalent compensation
alleged to be owing on account of any dealings with any real estate broker or
agent occurring by, through or under the indemnifying party.

       

      4.           The
covenants, agreements, terms, provisions and conditions contained in this
Agreement shall bind and inure to the benefit of the parties hereto and their
respective heirs, successors, legal representatives and permitted assigns, if
any.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      5.           This
Agreement may not be modified orally, but only by an agreement in writing signed
by both parties.

       

      6.           In
the event of any inconsistency between the terms and provisions of this
Agreement and the terms and provisions of the Original Lease, the terms and
provisions of this Agreement shall govern and be binding.

       

      7.           This
Agreement contains the entire understanding of the parties with respect to the
subject matter contained herein.  The parties hereto acknowledge and
agree that the certain notice heretofore delivered by the Original Landlord to
Tenant shall terminate the Original Lease effective as of August 31, 2001, which
termination shall be valid and binding on the parties hereto, and that the
certain action captioned “Kraft Hardware, Inc., et al. v. 306 East 61
Corporation, et al.” (Supreme Court, NY Co., Index No. 106806/01) shall be
discontinued with prejudice and without costs to any party and Landlord and
Tenant hereby release and relieve one another from and against any and all
claims and liabilities of every nature whatsoever relating to the subject matter
of such action.

       

      8.           This
Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which
together shall constitute but one and the same instrument.

       

      In
witness whereof, the undersigned have entered into this Agreement as of the day
and year first above written.

       

      
        
          	
                   

                	
                  URBAN
      DEVELOPMENT PARTNERS (61),
LLC

                

        

      

       

      
        
          	
                  By:

                	
                  /s/ Philip R. Carter

                
	 
      	
                  Name:  Philip
      R. Carter

                
	 
      	
                  Title:  Managing
      Member

                

        

      

      

      
        
          	
                   
      

                	
                  BUNNY
      WILLIAMS INCORPORATED

                

        

      

       

      
        
          	
                  By:

                	
                  /s/ Bunny Williams

                
	 
      	
                  Bunny
      Williams aka Bruce B. Williams

                
	 
      	
                  President

                

        

      

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      
        	
                STATE
      OF NEW YORK

              	
                )

              	 
      
	 
      	
                )

              	
                ss.:

              
	
                COUNTY
      OF NEW YORK

              	
                )

              	 
      

      

       

      On the
24th
day of July in the year 2001 before me, the undersigned, a Notary Public in and
for said State, personally appeared Bunny Williams, a/k/a Bruce B. Williams,
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
individua(s), or the person upon behalf of which the individual(s) acted,
executed the instrument.

       

      
        
          
            	
                    By:

                  	
                    /s/ Burton R.
  Ross

                  

          

        

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

      
        
          
            
              
                	
                        STANDARD
      FORM OF LOFT LEASE

                        The
      Real Estate Board of New York, Inc.

                        Copyright
      1982.  All Rights Reserved.

                        Reproduction
      in whole or in part
prohibited

                      

              

            

          

        

      

       

      Agreement
of Lease, made as of this 20TH day of OCTOBER 1995, between 306 East 61
Corporation, a New York Corporation having its place of business at 306 East
61st Street, New York, NY 10021 party of the first part, hereinafter referred to
as OWNER, and Bunny Williams, Inc., a New York Corporation having its place of
business at 4 East 77th Street, New York, NY 10021 party of the second part,
hereinafter referred to as TENANT,

       

      Witnesseth:        Owner
hereby leases to Tenant and Tenant hereby hires from Owner part 5th floor -
See Exhibit “A” in the building known as 306 East 61st Street in the Borough of
Manhattan, City of New York, for the term of 7 years (or until such term shall
sooner cease and expire as hereinafter provided) to commence on the – See
paragraph “41(A)” day of __________________ nineteen hundred and
__________________, and to end on the day of __________________ nineteen hundred
and __________________ both dates inclusive, at an annual rental rate of see
Paragraph 41(b).

       

      which
Tenant agrees to pay in lawful money of the United States which shall be legal
tender in payment of all debts and dues, public and private, at the time of
payment, in equal monthly installments in advance on the first day of each month
during said term, at the office of Owner or such other place as Owner may
designate, without any set off or deduction whatsoever, except that Tenant shall
pay the first monthly installment(s) on the execution hereof (unless this lease
be a renewal).

       

      In the
event that, at the commencement of the term of this lease, or thereafter, Tenant
shall be in default in the payment of rent to Owner pursuant to the terms of
another lease with Owner or with Owner’s predecessor in interest, Owner may at
Owner’s option and without notice to Tenant add the amount of such arrears to
any monthly installment of rent payable hereunder and the same shall be payable
to Owner as additional rent.

       

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

       

      
        
          	
                  Occupancy:

                	
                  1.      Tenant
      shall pay the rent as above and as herein-after
  provided.

                
	 	 
	
                  Use:

                	
                  2.      Tenant
      shall use and occupy demised premises for office for practice of interior
      design and offices for other related design services and showroom for the
      sale of decorative merchandise provided such use is in accordance with the
      Certification of Occupancy for the building, if any, and for no other
      purpose.

                

        

      

       

      Alterations:

       

      3.      Tennant
shall make no structural changes in or to the demised premises of any nature
without Owners’ prior written consent.  Subject to the prior written
consent of Owner, and to the provisions of this article, Tenant at Tenant’s
expense, may make alteration, installations, additions or improvements which are
non-structural and which do not affect utility services or plumbing and
electrical lines, in or to the interior of the demised premises using
contractors or mechanics first approved by Owner.  Tenant shall, at
its expense, before making any alternations, additions, installations or
improvements obtain all permits, approval and certificates required by any
governmental or quasi- governmental bodies and (upon completion) certificates or
final approval thereof and shall deliver promptly duplicates of all such
permits, approvals and certificates to Owner.  Tenant agrees to carry
and will cause Tenant’s contractors and sub-contractors to carry such workman’s
compensation, general liability, personal and property damage insurance as Owner
may reasonably require.  If any mechanic’s lien is filed against the
demised premises, of the building of which the same forms a part, for work
claimed to have been done for, or materials furnished to, Tennant, whether or
not done pursuant to this article, the same shall be discharged by Tenant within
20 days after notice, at Tenant’s expense, by filing the bond required by law or
otherwise.  All fixtures and all paneling, partitions, railings and
like installations, installed in the premise at any time, either by Tenant or by
Owner on Tenant’s behalf, shall upon installation, become the property of Owner
and shall remain upon and be surrendered with the demised
premises.  Nothing in this Article shall be construed to give Owner
title to or to prevent Tenant’s removal of trade fixtures, moveable office
furniture and equipment, but upon removal of any such from the premises or upon
removal of other installations as may be required by Owner.  Tenant
shall immediately and at its expense, repair and restore the premise to the
condition existing prior to installation and repair any damage to the demised
premises or the building, due to such removal.  All property permitted
to be removed by Tenant at the end of the term remaining in the premises after
Tenant’s removal shall be deemed abandoned and may, at the election of Owner,
either be retained as Owner’s properly or removed from the premise by owner, at
Tenant’s expense.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Repairs:

       

      4.      Owner
shall maintain and repair the exterior of and the public portions of the
building.  Tenant shall, throughout the term of this lease, lake good
care of the demised premises including the bathrooms and lavatory facilities (if
the demised premises encompass the entire floor of the building) and the windows
and window frames and, the fixture and appurtenances therein and at Tenant’s
sole cost and expense promptly make all repairs thereto and to the building,
whether structural or non-structural in nature, cased by or resulting form the
carelessness, omission, neglect or improper conduct of Tenant, Tenant’s servant,
employees, invitees, or licensees, and whether or not arising from such Tenant
conduct or omission, when required by other provisions of this lease, including
Article 6. Tenant shall also repair all damage to the building and the demised
premises caused by the moving of Tenant’s fixtures, furniture or
equipment.  All the aforesaid repairs shall be of quality or class
equal to the original work or construction.  If Tenant fails, after
ten days notice, to proceed with due diligence to make repairs required to be
made by Tenant, the same may be made by the Owner at the expense of Tenant, and
the expense thereof incurred by Owner shall be collectible, as additional rent,
after rendition of a bill or statement therefor.  If the demised
premises be or become infested with vermin, Tenant shall, at its expense, cause
the same to be exterminated.  Tenant shall give Owner prompt notice of
any defective condition in any plumbing, heating system or electrical lines
located in the demised premises and following such notice, Owner shall remedy
the condition with due diligence, but at the expense of Tenant, if repairs are
necessitated by damage or injury attributable to Tenant, Tenant’s servants,
agents, employees. invitees or licensees as aforesaid.  Except as
specifically provided in Article 9 or elsewhere in this lease, there shall be no
allowance to the Tenant for a diminution of rental value and no liability on the
part of Owner by reason of inconvenience, annoyance or injury to business
arising from Owner, Tenant or others making or failing to make any repairs,
alternations, additions or improvements in or to any portion of the building or
the demised premises or in and to the fixtures, appurtenances or equipment
thereof.  The provisions of this Article 4 with respect to the making
of repairs shall not apply in the case of fire or other casualty with regard to
which Article 9 hereof shall apply.

       

      Window
Cleaning:

       

      5.      Tenant
will not clean nor require, permit, suffer or allow any window in the demised
premises to be cleaned from the outside in violation of Section 202 of the New
York State Labor Law or any other applicable law or of the Rules of the Board of
Standards and Appeals, or of any other Board or body having or asserting
jurisdiction.

       

      Requirements
of
Law, Fire
Insurance,
Floor
Loads:

      
 

      6.      Prior
to the commencement of the lease term, if Tenant is then in possession, and at
all times thereafter, Tenant shall, at Tenant’s sole cost and expense, promptly
comply with all present and future laws, orders and regulations of all sate,
federal municipal and local governments, departments, commissions and board and
any direction of any public officer pursuant to law, and all orders, rules and
regulations of the New York Board of Fire Underwriters, or the Insurances
Services Office, or any similar body which shall impose any violation, order or
duty upon Owner or Tenant with respect to the demised premises arising out of
Tenant’s manner of use thereof, or, with respect to the building, if arising out
of Tenant’s manner of use of the demised premises or the building (including the
use permitted under the lease).  Except as provided in Article 30
hereof, nothing herein shall require Tenant to make structural repairs or
alternations unless Tenant has, by its manner of use of the demised premises or
method of operation therein, violated any such laws, ordinances, orders, rules,
regulations or requirements with respect thereto.  Tenant shall not do
or permit any act or thing to be done in or to the demised premises which is
contrary to law, or which will invalidate or be in conflict with public
liability, fire or other polices of insurance at any time carried by or for the
benefit of Owner.  Tenant shall not keep anything in the demised
premises except as now or hereafter permitted by the Fire Department, Board of
Fire Underwriters, Fire Insurance Rating Organization and other authority having
jurisdiction, and then only in such manner and such quantity so as not to
increase the rate for fire insurance applicable to the building, nor use the
premises in a manner which will increase the insurance rate for the building or
any property located therein over that in effect prior to the commencement of
Tenant’s occupancy. If by reason of failure to comply with the foregoing the
fire insurance rate shall at the beginning of this lease or at any time
thereafter, be higher than if otherwise would be, then Tenant shall reimburse
Owner, as additional rent hereunder, for that portion of all fire insurance
premiums thereafter paid by Owner which shall have been charged because of such
failure by Tenant.  In any action or proceeding wherein Owner and
Tenant are parties, a schedule or “make-up” or rate for the building or demised
premises issued by a body making fire insurance rates applicable to said
premises shall be conclusive evidence of the facts therein stated and of the
several items and charges in the fire insurance rates then applicable to said
premises.  Tenant shall not place a load upon any floor of the demised
premises exceeding the floor load per square foot area which it was designed to
carry and which is allowed by law.  Owner reserves the right to
prescribe the weight and position of all safes, business machines and mechanical
equipment. Such installations shall be placed and maintained by Tenant, at
Tenant’s expense, in settings sufficient, in Owners’ judgement, to absorb and
prevent vibration, noise and annoyance.

       

      Subordination:

       

      7.      This
lease is subject and subordinate to all ground or underlying leases and to all
mortgages which may now or hereafter affect such leases or the real property of
which demised premises are a part and to all renewals, modifications,
consolidations, replacements and extensions of any such underlying leases and
mortgages.  This clause shall be self-operative and no further
instrument or subordination shall be required by any ground or underlying lessor
or by any mortgagee, affecting any lease or the real property of which the
demised premises are a part.  In confirmation of such subordination,
Tenant shall execute promptly any certificate that Owner may
request.

       

      Property
– Loss,
Damage, Reimbursement,
Indemnity:

      

      8.      Owner
or its agents shall not be liable for any damage to property of Tenant or of
others entrusted to employees of the building, nor for loss of or damage to any
property of Tenant by theft or otherwise, nor for any injury damage to persons
or property resulting from any cause of whatsoever nature, unless caused by or
due to the negligence of Owner, its agents, servants or
employees:  Owner or its agents shall not be liable for any damage
caused by other tenants or persons, in, upon or about said building or caused by
operations in connection of any private, public or quasi public
work.  If at any time any windows of the demised premises are
temporarily closed, darkened or bricked up (or permanently closed, darkened or
bricked up, if required by law) for any reason whatsoever including, but not
limited to Owners’ own act.  Owner shall not be liable for any damage
Tenant may sustain thereby and Tenant shall not be entitled to any compensation
therefor nor abatement or diminution of rent nor shall the same release Tenant
from its obligations hereunder nor constitute an eviction.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      Destruction
Fire
and Other Casualty:

       

      9.      (a)
If the demised premises or any part thereof shall be damaged by fire other
casualty, Tenant shall give immediate notice thereof to Owner and this lease
shall continue in full force and effect except as hereinafter set
forth.  (b) If the demised premises are partially damaged or rendered
partially unusable by fire or other casualty, the damages thereof shall be
repaired by and at the expenses of Owner and the rent, until such repair shall
be substantially completed, shall be apportioned from the day following the
casualty according to the part of the premises which is usable. (c) If the
demised premises are totally damaged or rendered wholly unusable by fire or
other casualty, then the rent shall be proportionately paid up to the time of
the casualty and thenceforth shall cease until the date when the premises shall
have been repaired and restored by Owner, subject to Owners’ right to elect not
to restore the same as hereinafter provided.  (d) If the demised
premises are rendered wholly unusable or (whether or not the demised premises
are damaged in whole or in part) if the building shall be so damaged that Owner
shall decide to demolish it or to rebuild it, then, in any of such events, Owner
may elect to to terminate this lease by written notice to Tenant, given within
90 days after such fire or casualty, specifying a date for the expiration of the
lease, which date shall not be more than 60 days after the giving of such
notice, and upon the date specified in such notice the term of this lease shall
expire as fully and completely as if such date were the date set forth above for
the termination of this lease and Tenant shall forthwith quit, surrender and
vacate the premises without prejudice however, to Owners’ rights and remedies
against Tenant under the lease provisions in effect prior to such termination,
and any rent owing shall be paid up to such date and any payments of rent made
by Tenant which were on account of any period subsequent to such date shall be
returned to Tenant.  Unless Owner shall serve a termination notice as
provided for herein, Owner shall make the repairs and restorations under the
conditions of (b) and (c) hereof, with all reasonable expedition, subject to
delays due to adjustment of insurance claims, labor troubles and causes beyond
Owner’s control.  After any such casualty, Tenant shall cooperate with
Owner’s restoration by removing form the premises as promptly as reasonably
possible, all of Tenant’s salvageable inventory and movable equipment,
furniture, and, other property.  Tenant’s liability for rent shall
resume five (5) days after written notice from Owner, that the premises are
substantially ready for Tenant’s occupancy.  (c) Nothing contained
hereinabove shall relieve Tenant from liability that may exist as a result of
damage from fire or other casualty.  Notwithstanding the foregoing,
each party shall look first to any insurance in its favor before making any
claim against the other party for recovery for loss or damage resulting from
fire or other casualty and to the event that such insurance is in force and
collectible and to the extent permitted by law, Owner and Tenant each hereby
releases and waives all right of recovery against the other or any one claiming
through or under each of them by way of subrogation or otherwise.  The
foregoing release and waiver shall be in force only if both releasers’ insurance
polices contain a clause providing that such a release or waiver shall not
invalidate the insurance.  If, and to the extent, that such waiver can
be obtained only by the payment of additional premiums, then the party
benefitting from the waiver shall pay such premium within ten days after written
demand or shall be deemed to have agreed that the party obtaining insurance
coverage shall be free of any further obligation under the provisions hereof
with respect to waiver of subrogation.  Tenant acknowledges that Owner
will not carry insurance on Tenant’s furniture and or furnishings or any
fixtures or equipment, improvements, or appurtenances removable by Tenant and
agrees that Owner will not be obligated to repair any damage thereto or replace
the same.  (f) Tenant hereby waives the provisions of Section 227 of
the real Property Law and agrees that the provisions of this article shall
govern and control in lieu thereof.

       

      Eminent
Domain:

      

      10.      If
the whole or any part of the demised premises shall be acquired or condemned by
Eminent Domain for any public or quasi public use or purpose, then and in that
event, the term of this lease shall cease and terminate from the date of title
vesting in such proceeding and Tenant shall have no claim for the value of any
unexpired term of said lease.

       

      Assignment
Mortgage,
Etc.:

      
      

      11.      Tenant,
for itself, its heirs, distributees, executors, administrators, legal
representatives, successors and assigns, expressly covenants that it shall not
assign, mortgage or encumber this agreement, nor underlet or suffer or permit
the demised premises or any part thereof to be used by others, without the prior
written consent of Owner in each instance.  Transfer of the majority
of the stock of a corporate Tenant shall be deemed an assignment.  If
this lease be assigned, or if the demised premises or any part thereof be
underlet or occupied by any body other than Tenant, Owner may, after default by
Tenant, collect rent from the assignee, under-tenant or occupant, and apply the
net amount collected to the rent herein reserved, but no such assignment
underletting, occupancy or collection shall be deemed a waiver of this covenant,
or the acceptance of the assignee, under-tenant or occupant as tenant. or a
release of Tenant from the further performance by Tenant of covenants on the
part of Tenant herein contained.  The consent by Owner to an
assignment or underletting shall not in any wise be construed to relieve Tenant
from obtaining the express consent in writing of Owner to any further assignment
or underletting.

       

      Electric
Current

      F

       12.      Rates
and conditions in respect to submetering or rent inclusion, as the case may be,
to be added in RIDER attached hereto.  Tenant covenants and agrees
that at all times its use of electric current shall not exceed the capacity of
existing teeters to the building or the risers or wiring installation and tenant
may not use any electrical equipment which, in Owner’s opinion, reasonably
exercised, will overload such installations or interfere with the use thereof by
other tenants of the building.  The change at any time of the
character of electric service shall in no wise make Owner liable or responsible
to Tenant, for any loss, damages or expenses which Tenant may
sustain.

      _______________________________
FRider to be added if
necessary

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      Access
to Premises:

       

      13.      Owner
or Owner’s agents shall have the right (but shall not be obligated) to enter the
demised premises in any emergency at any time, and, at other reasonable times,
to examine the same and to make such repairs, replacements and improvements as
Owner may deem necessary and reasonably desirable to any portion of the building
or which Owner may elect to perform in the premises after Tenant’s failure to
make repairs or perform any work which Tenant is obligated to perform under this
lease, or for the purpose of complying with laws, regulations and other
directions of governmental authorities. Tenant shall permit Owner to use and
maintain and replace pipes and conduits in and through the demised premises and
to erect new pipes and conduits therein provided, wherever possible, they are
within walls or otherwise concealed.  Owner may, during the progress
of any work in the demised premises, take all necessary materials and equipment
into said premises without the same constituting an eviction nor shall the
Tenant be entitled to any abatement of rent while such work is in progress nor
to any damages by reason of loss or interruption of business or
otherwise.  Throughout the term hereof Owner shall have the right to
enter the demised premises at reasonable hours for the purpose of showing the
same to prospective purchasers or mortgagees of the building, and during the
last six months of the term for the purpose of showing the same to prospective
tenants and may, during said six months period, place upon the premises the
usual notices “To Let” and “For Sale” which notices Tenant shall permit to
remain thereon without molestation.  If Tenant is not present to open
and permit an entry into the premises, Owner or Owner’s agents may enter the
same whenever such entry may be necessary or permissible by master key or
forcibly and provided reasonable care is exercised to safeguard Tenant’s
property, such entry shall not render Owner or its agents liable therefor, nor
in any event shall the obligations of Tenant hereunder be
affected.  If during the last month of the term Tenant shall have
removed all or substantially all of Tenant’s properly therefrom, Owner may
immediately enter, alter, renovate or redecorate the demised premises without
limitation or abatement of rent, or incurring liability to Tenant for any
compensation and such act shall have no effect on this lease or Tenant’s
obligations hereunder.

       

      Vault,
Vault
Space, Area:

       

      14.      No
Vaults, vault space or area, whether or not enclosed or covered, nor within the
property line of the building is leased hereunder, anything contained in or
indicated on any sketch, blue print or plan or anything contained elsewhere in
this lease to the contrary notwithstanding.  Owner makes no
representation as to the location of the property line of the
building.  All vaults and vault space and all such areas not within
the property line of the building, which Tenant may be permitted to use and / or
occupy, is to be used and / or occupied under a revocable license, and if any
such license be revoked, or if the amount of such space or area be diminished or
required by any federal, state or municipal authority or public utility, Owner
shall not be subject to any liability nor shall Tenant be entitled to any
compensation or diminution or abatement of rent, nor shall such revocation,
diminution or requisition be deemed constructive or actual
eviction.  Any tax, fee or charge of municipal authorities for such
vault or area shall be paid by Tenant, if used by Tenant, whether or not
specifically leased hereunder.

       

      Occupancy:

       

      15.      Tenant
will not at any time use or occupy the demised premises in violation of the
certificate of occupancy issued for the building of which the demised premises
are a part.  Tenant has inspected the premises and accepts them as is,
subject to the riders annexed hereto with respect to Owner’s work, if any. In
any event, Owner makes no representation as to the condition of the premises and
Tenant agrees to accept the same subject to violations, whether or not of
record.  If any governmental license or permit shall be required for
the proper and lawful conduct of Tenant’s business, Tenant shall be responsible
for and shall procure and maintain such license or permit.

       

      Bankruptcy:

       

      16.      (a)
Anything elsewhere in this lease to the contrary notwithstanding, this lease may
be cancelled by Owner by sending of a written notice to Tenant within a
reasonable time after the happening of any one or more of the following events:
(1) the commencement of a case in bankruptcy or under the laws of any state
naming Tenant as the debtor; or (2) the making by Tenant of an assignment or any
other arrangement for the benefit of creditors under any state statute. Neither
Tenant nor any person claiming through or under Tenant, or by reason of any
statute or order of court, shall thereafter be entitled to possession of the
premises demised but shall forthwith quit and surrender the premises. If this
lease shall be assigned in accordance with its terms, the provisions of this
Article 16 shall be applicable only to the party then owning Tenant’s interest
in this lease.

       

      (b) Its
is stipulated and agreed that in the event of the termination of this lease
pursuant to (a) hereof, Owner shall forthwith, notwithstanding any other
provisions of this lease to the contrary, be entitled to recover from Tenant as
and for liquidated damages an amount equal to the difference between the rental
reserved hereunder for the unexpired portion of the term demised and the fair
and reasonable rental value of the demised premises for the same
period.  In the computation of such damages the difference between any
installment of rent becoming due hereunder after the date of termination and the
fair and reasonable rental value of the demised premises for the period for
which such installment was payable shall be discounted to the date of
termination at the rate of four percent (4%) per annum. If such premises or any
part thereof be relet by the Owner for the unexpired term of said lease, or any
part thereof, before presentation of proof of such liquidated damages to any
court, commission or tribunal, the amount of rent reserved upon such reletting
shall be deemed to be the fair and reasonable rental value for the part or the
whole of the premises so re-let during the term of the re-letting. Nothing
herein contained shall limit or prejudice the right of the Owner to prove for
and obtain as liquidated damages by reason of such termination, 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 the amount of the
difference referred to above.

       

      Default:

       

      17.      (1)
If Tenant defaults in fulfilling any of the covenants of this lease other than
the covenants for the payment of rent or additional rent; or if the demised
premises becomes vacant or deserted “or if this lease be rejected under § 235 of
title 11 of the U.S. Code (bankruptcy code);” or if any execution or attachment
shall be issued against Tenant or any of Tenant’s property whereupon the demised
premises shall be taken or occupied by some other than Tenant; or if Tenant
shall make default with respect to any other lease between Owner and Tenant; or
if Tenant shall have failed, after five (5) days written notice, to redeposit
with Owner any portion of the security deposited hereunder which Owner has
applied to the payment of any rent and additional rent due and payable hereunder
then in any one or more of such events, upon Owner serving a written five (5)
days notice upon Tenant specifying the nature of said default and upon the
expiration of said five (5) days, if Tenant shall have failed to comply with or
remedy such default, or if the said default or omission complained of shall be
of a nature that the same cannot be completely cured or remedied within said
five (5) day period, and if Tenant shall not have diligently commenced during
such default within such five (5) day period, and shall not thereafter with
reasonable diligence and in good faith, proceed to remedy or cure such default,
then Owner may serve a written three (3) days’ notice of cancellation of this
lease upon Tenant, and upon the expiration of said three (3) days this lease and
the term thereunder shall end and expire as fully and completely as if the
expiration of such three (3) day period were the day herein definitely fixed for
the end and expiration of this lease and the term thereof and Tenant shall then
quit and surrender the demised premises to Owner but Tenant shall remain liable
as hereinafter provided.

       

      (2) If
the notice provided for in (1) hereof shall have been given, and the term shall
expire as aforesaid: or if Tenant shall make default in the payment of the rent
reserved herein or any item of additional rent herein mentioned or any part of
either or in making any other payment herein required: then and in any of such
events Owner may dispossess Tenant by summary proceedings or otherwise, and the
legal representative of Tenant or other occupant of demised premises and remove
their effects and hold the premises as if this lease had not been made, and
Tenant hereby waives the service of notice of intention to re-enter or to
institute legal proceedings to that end. If Tenant shall make default hereunder
prior to the date fixed as the commencement of any renewal or extension of this
lease, Owner may cancel and terminate such renewal or extension agreement by
written notice.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      Remedies
of Owner
and Waiver
of Redemption:

       

      18.      In
case of any such default, re-entry, expiration and/or dispossess by summary
proceedings or otherwise, (a) the rent, and additional rent, shall become due
thereupon and be paid up to the time of such re-entry, dispossess and/or
expiration, (b) Owner may re-let the premises or any part or parts thereof,
either in the name of Owner or otherwise, for a term or terms, which may at
Owner’s option be less than or exceed the period which would otherwise have
constituted the balance of the term of this lease and may grant concessions or
free rent or charge a higher rental than that in this lease, (c) Tenant or the
legal representatives of Tenant shall also pay Owner as liquidated damages for
the failure of Tenant to observe and perform said Tenant’s covenants herein
contained, any deficiency between the rent hereby reserved and or covenanted to
be paid and the net amount, if any, of the rents collected on account of the
subsequent lease or leases of the demised premises for each month of the period
which would otherwise have constituted the balance of the term of this lease.
The failure of Owner to re-let the premises or any part or parts thereof shall
not release or affect Tenant’s liability for damages. In computing such
liquidated damages there shall added to the said deficiency such expenses as
Owner may incur in connection with re-letting, such as legal expenses,
attorney’s fees brokerage, advertising and for keeping the demised premises in
good order or for preparing the same for re-letting. Any such liquidated damages
shall be paid in monthly installments by Tenant on the rent day specified in
this lease and any suit brought to collect the amount of the deficiency for the
any month shall not prejudice in any way the rights of Owner to collect the
deficiency for any subsequent month by a similar proceeding. Owner, in putting
the demised premises in good order or preparing the same for re-rental may, at
Owner’s option, make such alterations, repairs, replacements, and/or decorations
in the demised premises as Owner, in Owner’s sole judgment, considers advisable
and necessary for the purpose of re-letting the demised premises, and the making
of such alterations, repairs, replacements, and/or decorations shall not operate
or be construed to release Tenant from liability hereunder as aforesaid. Owner
shall in no event be liable in any way whatsoever for failure to re-let the
demised premises, or in the event that the demised premises are re-let, for
failure to collect the rent thereof under such re-letting, and in no event shall
Tenant be entitled to receive any excess, if any, of such net rents collected
over the sums payable by Tenant to Owner hereunder. In the event of a breach or
threatened breach by Tenant of any of the covenants or provisions hereof, Owner
shall have the right of injunction and the right to invoke and remedy allowed at
law or in equity as if re-entry, summary proceedings and other remedies were not
herein provided for. Mention in this lease of any particular remedy, shall not
prelude Owner from any other remedy, in law or in equity. Tenant hereby
expressly waives any and all rights of redemption granted by or under any
present or future laws.

       

      Fees
and Expenses:

       

      19.      If
Tenant shall default beyond the applicable grace period in the observance or
performance of any term or covenant or 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, then, unless otherwise provided elsewhere in this lease, Owner may
immediately* perform the obligation of Tenant thereunder. If Owner, in
connection with the foregoing or in connection with any default by Tenant in the
covenant to pay rent hereunder, makes any expenditures or incurs any obligations
for the payment of money, including but not limited to attorney’s fees, in
instituing, prosecuting of defending any action or proceedings, then Tenant will
reimburse Owner for such sums so paid or obligations incurred with interest and
costs. The foregoing expenses incurred by reason of Tenant’s default shall be
deemed to be additional rent hereunder and shall be paid by Tenant to Owner
within five (5) days of rendition of any bill or statement to Tenant therefore.
If Tenant’s lease term shall have expired at the time of making of such
expenditures or incurring of such obligations such sums shall be recoverable by
Owner as damages.

       

      Building
Alterations
and
Management:

       

      20.      Owner
shall have the right at any time 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, stairs, toilets or other public parts of the building and to change
the name, number or designation by which the building may be known. There shall
be no allowance to Tenant for diminution of rental value and no liability on the
part of Owner by reason in inconvenience, annoyance or injury to business
arising from Owner or other Tenant making any repairs in the building or any
such alterations, additions and improvements. Furthermore, Tenant shall not have
any claim against Owner by reason of Owner’s imposition of any controls of the
manner of access to the building by Tenant’s social or business visitors as the
Owner may deem necessary for the security of the building and its
occupants.

       

      No
Representations
by Owner:

       

      21.      Neither
Owner nor Owner’s agents have made any representations or promises with respect
to the physical condition of the building, the land upon which it is erected or
the demised premises, the rents, leases, expenses of operation or any other
matter or thing affecting or related to the demised premises or the building
except as herein expressly set forth and no rights, easements or licenses are
acquired by Tenant by implication or otherwise except as expressly set forth in
the provisions of this lease.  Tenant has inspected the building and
the demised premises and is thoroughly acquainted with their condition and
agrees to take the same “as is” on the date possession is tendered and
acknowledges that the taking of possession of the demised premises by Tenant
shall be conclusive evidence that the said premises and the building of which
the same form a part were in good and said satisfactory condition at the time
such possession was so taken, except as to latent defects. All understandings
and agreements heretofore made between the parties hereto are merged in this
contract, which alone fully and completely expresses the agreement between Owner
and Tenant 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.

       

      End
of Term:

       

      22.      Upon
the expiration or other termination of the term of this lease. Tenant shall quit
and surrender to Owner the demised premises, broom clean, in good order and
condition, ordinary wear and damages which Tenant is not required to repair as
provided elsewhere in this lease excepted, and Tenant shall remove all its
property from the demised premises. Tenant’s obligation to observe or perform
this covenant shall survive the expiration or other termination of this lease.
If the last day of the term of this Lease or any renewal thereof, falls on
Sunday, this lease shall expire at noon on the preceding Saturday unless it be a
legal holiday in which case it shall expire at noon on the preceding business
day.

      ___________________________

      
        *   
in the event of an emergency and at other times upon reasonable
advance notice

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      Quiet
Enjoyment:

       

      23.      Owner
covenants and agrees with Tenant that upon Tenant paying the rent and additional
rent and observing and performing all the terms, covenants and conditions, on
Tenant’s part to be observed and performed, Tenant may peaceably and quietly
enjoy the premises hereby demised, subject, nevertheless, to the terms and
conditions of this lease including, but not limited to, Article 34 hereof and to
the ground leases, underlying leases and mortgages hereinbefore
mentioned.

       

      Failure
to
Give Possession:

       

      24.      If
Owner is unable to give possession of the demised premises on the date of the
commencement of the term hereof, because of the holding-over or retention of
possession of any tenant, undertenant or occupants or if the demised premises
are located in a building being constructed, because such building has not been
sufficiently completed to make the premises ready for occupancy or because of
the fact that a certificate of occupancy has not been procured or if Owner has
not completed any work required to be performed by Owner, or for any other
reason, Owner shall not be subject to any liability for failure to give
possession on said date and the validity of the lease shall not be impaired
under such circumstances, nor shall the same be construed in any wise to extend
the term of this lease, but the rent payable hereunder shall be abated (provided
Tenant is not responsible for Owner’s inability to obtain possession or complete
any work required) until after Owner shall have given Tenant notice that the
premises are substantially ready for Tenant’s occupancy. If permission is given
to Tenant to enter into the possession of the demised premises or to occupy
premises other than the demised premises prior to the date specified as the
commencement of the term of this lease, Tenant covenants and agrees that such
occupancy shall be deemed to be under all the terms, covenants, conditions and
provisions of this lease, except as to the covenant to pay rent. The provisions
of this article are intended to constitute “an express provision to the
contrary” within the meaning of Section 223-a of the New York Real Property
Law.

       

      No
Waiver:

       

      25.      The
failure of Owner or Tenant to seek redress for violation of, or to insist upon
the strict performance of any covenant or condition of this lease or of any of
the Rules or Regulations, set forth or hereafter adopted by Owner, 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
Owner of rent with knowledge of the breach of any covenant of this lease shall
not be deemed a waiver of such breach and no provision of this lease shall be
deemed to have been waived by Owner unless such waiver be in writing signed by
Owner. No payment by Tenant or receipt by Owner of a lesser amount than the
monthly rent herein stipulated shall be deemed to be other than on account of
the earliest stipulated rent, nor shall any endorsement or statement of any
check or any letter accompanying any check or payment as rent be deemed an
accord and satisfaction, and Owner may accept such check or payment without
prejudice to Owner’s right to recover the balance of such rent or pursue any
other remedy in this lease provided. All checks tendered to Owner as and for the
rent of the demised premises shall be deemed payments for the account of Tenant.
Acceptance by Owner of rent from anyone other than Tenant shall not be deemed to
operate as an attornment to Owner by the payor of such rent or as a consent by
Owner to an assignment or subletting by Tenant of the demised premises to such
payor, or as a modification of the provisions of this lease. No act or thing
done by Owner or Owner’s agents during the term hereby demised shall be deemed
an acceptance of a surrender of said premises and no agreement to accept such
surrender shall be valid unless in writing signed by Owner. No employee of Owner
or Owner’s agent shall have any power to accept the keys of said premises prior
to the termination of the lease and the delivery of keys to any such agent or
employee shall not operate as a termination of the lease or a surrender of the
premises.

       

      Waiver
of Trial
by Jury:

       

      26.      It
is mutually agreed by and between Owner and Tenant that the respective parties
hereto shall and they hereby do waive trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the other (except
for personal injury or property damage) on any matters whatsoever arising out of
or in any way connected with this lease, the relationship of Owner and Tenant,
Tenant’s use of or occupancy of said premises, and any emergency statutory or
any other statutory remedy. It is further mutually agreed that in the event
Owner commences any summary proceeding for possession of the premises, Tenant
will not interpose any counterclaim of whatever nature or description in any
such proceeding.

       

      Inability
to Perform:

       

      27.      This
Lease and the obligation of Tenant to pay rent hereunder and perform all of the
other covenants and agreements hereunder on part of Tenant to be performed shall
in no wise be affected, impaired or excused because Owner is unable to fulfill
any of its obligations under this lease or to supply or is delayed in supplying
any service expressly or impliedly to be supplied or is unable to make, or is
delayed in making any repair, additions, alternations or decorations or is
unable to supply or is delayed in supplying any equipment or fixtures if Owner
is prevented or delayed from so doing by reason of strike or labor troubles or
any cause whatsoever beyond Owner’s sole control including, but not limited to,
government preemption in connection with a National Emergency or by reason of
any rule, order or regulation of any department of subdivision thereof of any
government agency or by reason of the conditions of supply and demand which have
been or are affected by war or other emergency.

       

      Bills
and Notices:

       

      28.      Except
as otherwise in this lease provided, a bill, statement, notice or communication
which Owner may desire or be required to give to Tenant, shall be deemed
sufficiently given or rendered it, in writing, sent by registered or certified
mail addressed to Tenant at the building of which the demised premises form a
part and the time of the rendition of such bill or statement and of the giving
of such notice or communication shall be deemed to be the time when the same is
mailed. Any notice by Tenant to Owner must be served by registered or certified
mail addressed to Owner at the address first hereinabove given or at such other
address as Owner shall designate by written notice.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Water
Charges:

       

      29.      If
Tenant requires, uses or consumes water for any purpose in addition to ordinary
drinking and lavatory purposes Owner may install a water meter and thereby
measure Tenant’s water consumption for all purposes. Tenant shall pay Owner for
the cost of the meter and the cost of the installation, thereof and throughout
the duration of Tenant’s occupancy Tenant shall keep said meter and installation
equipment in good working order and repair at Tenant’s own cost and expense in
default of which Owner may cause such meter and equipment to be replaced or
repaired and collect the cost thereof from Tenant, as additional rent. Tenant
agrees to pay for water consumed, as shown on said meter as and when bills are
rendered, and on default in making such payment Owner may pay such charges and
collect the same from Tenant, as additional rent. Tenant covenants and agrees to
pay, as additional rent, the sewer rent, charge or any other tax, rent, levy or
charge which now or hereafter is assessed, imposed or a lien upon the demised
premises or the realty of which they are part pursuant to law, order or
regulation made or issued in connection with the use, consumption, maintenance
or supply of water, water system or sewage or sewage connection or system. If
the building or the demised premises or any part thereof is supplied with water
through a meter through which water is also supplied to other premises Tenant
shall pay to Owner, as additional rent, on the first day of each month,
                    
% ($
                     )
of the total meter E
charges as Tenant’s portion. Independently of and in addition to any of the
remedies reserved to Owner hereinabove or elsewhere in this lease, Owner may sue
for and collect any monies to be paid by Tenant or paid by Owner for any of the
reasons or purposes hereinabove set forth.

       

      
        30.      Intentionally
Omitted.

      

       

      Elevators,
Heat,
Cleaning:

       

      31.      Owner
shall: (a) provide necessary passenger elevator facilities on business days from
8 a.m. to 6 p.m. and on Saturday from 8 a.m. to 1 p.m.; (b) if freight elevator
service is provided, same shall be provided only on regular business days Monday
through Friday inclusive, and on those days only between the hours of 9 a.m. and
12 noon and between 1 p.m. and 5 p.m.; (c) furnish heat, water and other
services supplied by Owner to the demised premises, when and as required by law,
on business days from 8 a.m. to 6 p.m. and on Saturdays from 8 a.m. to 1 p.m.;
(d) clean the public halls and public portions of the building which are used in
common by all tenants. Tenant shall, at Tenant’s expense, keep the demised
premises, including the windows, clean and in order, to the satisfaction of
Owner, and for that purpose shall employ the person or persons, or corporation
approved by Owner. Tenant shall pay to Owner the cost of removal of any of
Tenant’s refuse and rubbish from the building. Bills for the same shall be
rendered by Owner to Tenant at such time as owner may elect and shall be due and
payable hereunder, and the amount of such bills shall be deemed to be, and be
paid as, additional rent. Tenant shall, however, have the option of
independently contracting for the removal of such rubbish and refuse in the
event that Tenant does not wish to have same done by employees of Owner. Under
such circumstances, however, the removal of such refuse and rubbish by others
shall be subject to such rules and regulations as, in the judgment of Owner, are
necessary for the proper operation of the building. Owner reserves the right to
stop service of the heating, elevator, plumbing and electric systems, when
necessary, by reason of accident, or emergency, or for repairs, alterations,
replacement or improvements, in the judgment of Owner desirable or necessary to
be made, until said repairs, alterations, replacements or improvements shall
have been completed. If the building of which the demised premises are a part
supplies manually operated elevator service, Owner may proceed with alterations
necessary to substitute automatic control elevator service upon ten (10) day
written notice to Tenant without in any way affecting the obligations of Tenant
hereunder, provided that the same shall be done with the minimum amount of
inconvenience to Tenant, and Owner pursues with due diligence the completion of
the alternations.

       

      Security:

      32.      Tenant
has deposited with Owner the sum of F$13,291.67
as security for the faithful performance and observance by Tenant of the terms,
provisions and conditions of this lease; it is agreed that in the event Tenant
defaults in respect of any of the terms, provisions and conditions of this
lease, including, but not limited to, the payment of rent and additional rent,
Owner may use, apply or retain the whole or any part of the security so
deposited to the extent required for the payment of any rent and additional rent
or any other sum as to which tenant is in default or for any sum which Owner may
expend or may be required to expend by reason of Tenant’s default in respect of
any of the terms, covenants and conditions of this lease, including but not
limited to, any damages or deficiency in the re-letting of the premises, whether
such damages or deficiency accrued before or after summary proceedings or other
re-entry by Owner. In the event that Tenant shall fully and faithfully comply
with all of the terms, provisions, covenants and conditions of this lease, the
security shall be returned to Tenant after the date fixed as the end of the
Lease and after delivery of entire possession of the demised premises to Owner.
In the event of a sale of the land and building or leasing of the building, of
which the demised premises form a part, Owner shall have the right to transfer
the security to the vendee or lessee and owner shall thereupon be released by
Tenant from all liability for the return of such security; and Tenant agrees to
look to the new Owner solely 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 Owner. Tenant further convenants that it will not assign
or encumber or attempt to assign or encumber the monies deposited herein as
security and that neither Owner nor its successors or assigns shall be bound by
any such assignment, encumbrance, attempted assignment or attempted
encumbrances.

       

      Captions:

       

      33.      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.

      ______________________________

      
        F Space to be filled in or
deleted.

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      Definitions:

       

      34.      The
term “Owner” as used in this lease means only the owner of the fee or of the
leasehold of the building 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) of which the demised premises form a part, so that in the event of
any sale or sales of said land and building or of said lease, or in the event of
a tense of said building, or of the land and building, the said Owner shall be
and hereby is entirely freed and relieved of all covenants and obligations of
Owner hereunder, and it shall be deemed and construed without further agreement
between the parties or their successors in interest, or between the parties and
the purchaser, at any such sale, or the said lessee of the building, or of the
land and building, that the purchaser or the lessee of the building has assumed
and agreed to carry out any and all covenants and obligations of Owner
hereunder. The Words “re-enter” and “re-entry” as used in this lease are not
restricted to their technical legal meaning. The term “rent” includes the annual
rental rate whether so-expressed or expressed in monthly installments, and
“additional rent.” “Additional rent” means all sums which shall be due to new
Owner from Tenant under this lease, in addition to the annual rental rate. The
term “business days” as used in this lease, shall exclude Saturdays (except such
portion thereof as is covered by specific hours in Article 31 hereof), Sundays
and all days observed by the State or Federal Government as legal holidays and
those designated as holidays by the applicable building service union employees
service contract or by the applicable Operating Engineers contract with respect
to HVAC service.

       

      Adjacent
Excavation-Shoring:

       

      35.      If
an excavation 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 purpose of doing such work as said person shall deem necessary to
preserve the wall or the building of which demised premises form a part form
injury or damage and to support the same by proper foundations without any claim
for damages or indemnity against Owner, or diminution or abatement of
rent.

       

      Rules
and Regulations:

       

      36.      Tenant
and Tenant’s servants, employees, agents, visitors, and licensees shall observe
faithfully, and comply strictly with, the Rules and Regulations annexed hereto
and such other and further reasonable Rules and Regulations as Owner or Owner’s
agents may from time to time adopt. Notice of any additional rules or
regulations shall be given in such manner as Owner may elect. In case Tenant
disputes the reasonableness of any additional Rule or Regulation hereafter made
or adopted by Owner or Owner’s agents, the parties hereto agree to submit the
question of the reasonableness of such Rule or Regulation for decision to the
New York office of the American Arbitration Association, whose determination
shall be final and conclusive upon the parties hereto. The right to dispute the
reasonableness of any additional Rule or Regulation upon Tenant’s part shall be
deemed waived unless the same shall be asserted by service of a notice, in
writing upon Owner within ten (10) days after the giving of notice thereof.
Nothing in this lease contained shall be construed to impose upon Owner any duty
or obligation to enforce the Rules and Regulations or terms, covenants or
conditions in any other lease, as against any other tenant and Owner shall not
be liable to Tenant for Violation of the same by any other tenant, its servants,
employees, agents, visitors or licensees.

       

      Glass:

       

      37.      Owner
shall replace, at the expense of the Tenant, any and all plate and other glass
damaged or broken from any cause whatsoever in and about the demised premises.
Owner may insure, and keep insured, at Tenant’s expense, all plate and other
glass in the demised premises for and in the name of Owner. Bills for the
premiums therefor shall be rendered by Owner to Tenant at such times as Owner
may elect, and shall be due from, and payable by, Tenant when rendered, and the
amount thereof shall be deemed to be, and be paid, as additional
rent.

       

      Estoppel
Certificate:

       

      38.      Tenant,
at any time, and from time to time, upon at least 10 days’ prior notice by
Owner, shall execute, acknowledge and deliver to Owner, and/or to any other
person, firm or corporation specified by Owner, a statement certifying that this
Lease is unmodified 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), stating the dates to which the rent and additional rent have
been paid, and stating whether or not there exists any default by Owner under
this Lease, and, if so, specifying each such default.

       

      Directory
Board
Listing

       

      39.      If,
at the request of and as accommodation to Tenant, Owner shall place upon the
directory board in the lobby of the building, one or more names of persons other
than Tenant, such directory board listing shall not be construed as the consent
by Owner to an assignment or subletting by Tenant to such person or
persons.

       

      Successors
and
Assigns:

       

      40.      The
covenants, conditions and agreements contained in this lease shall bind and
inure to the benefit of Owner and Tenant and their respective heirs,
distributees, executors, administrators, successors, and except as otherwise
provided in this lease, their assigns.

       ________________________________

      
        F Space to be filled in or
deleted.

      

       

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      SEE RIDER
ANNEXED HERETO AND MADE A PART HEREOF.

       

      
        
          
            
              
                
                  
                    
                      	
                              Witness
      for Owner:

                            	
                               

                            	
                              Date:

                            	
                              10/17/95

                            
	 
      	 
      	 
      	
                              306
      East 61 Corporation

                            
	 
      	 
      	 
      	 
      	 
      
	  
      	 
      	
                              By:

                            	
                              /s/ Peter M. Bernholz

                            	
                              [L.S.]

                            
	 
      	 
      	 
      	
                              PETER
      M. BERNHOLZ, PRESIDENT

                            	 
      
	 
      	 
      	 
      	 
      	 
      
	
                              Witness
      for Tenant

                            	 
      	BUNNY
      WILLIAMS,INC.	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	
                              By:

                            	
                              /s/ Bunny Willaims

                            	
                              [L.S.]

                            
	 	 	 	 	 
	 
      	 
      	
                              Date:

                            	
                              October 2, 1995

                            	 
      

                    

                  

                

              

            

          

        

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      ACKNOWLEDGEMENTS

       

      CORPORATE
TENANT

      STATE
OF NEW
YORK,          ss.:

      County
of

       

      On this
day of            , 19
         before me personally came to me
known, who being by me duly sworn, did depose and say that he resides in
                                                    that
he is
the                                 
of
                            the
corporation described in and which executed the foregoing instrument, as TENANT:
that he knows the seal of said corporation; that the seal affixed to said
instrument is such corporate seal; that it was so affixed by order of the Board
of Directors of said corporation, and that he signed his name thereto by like
order.

       

      INDIVIDUAL
TENANT

      STATE
OF NEW
YORK,          ss.:

      County
of

       

      On this
day of
             ,
19 before me personally came to be known and known to me to be the individual
described in and who, as TENANT, executed the foregoing instrument and
acknowledged to me that he executed the same.

       

      F      IMPORTANT
- PLEASE READ      E

       

      RULES
AND REGULATIONS ATTACHED TO

      AND
MADE A PART OF THIS LEASE IN

      ACCORDANCE
WITH ARTICLE 36.

       

      1.      The
sidewalks, entrances, driveways, passages, courts, elevators, vestibules,
stairways, corridors or halls shall not be obstructed or encumbered by any
Tenant or used for any purpose other than for ingress or egress from the demised
premises and for delivery of merchandise and equipment in a prompt and efficient
manner using elevators and passageways designated for such delivery by
Owner.  There shall not be used in any space, or in the public hall of
the building, either by any Tenant or by jobbers or others in the delivery or
receipt of merchandise, any hand trucks, except those equipped with rubber tires
and sideguards.  If said premises are situated on the ground floor of
the building, Tenant thereof shall further, at Tenant’s expense, keep the
sidewalk and curb in front of said premises clean and free from ice, snow, dirt
and rubbish.

       

      2.      The
water and wash closets and plumbing fixtures shall not be used for any purposes
other than those for which they were designed or constructed and no sweepings,
rubbish, rags, acids or other substances shall be deposited therein, and the
expense of any breakage, stoppage, or damage resulting from the violation of
this rule shall be borne by the Tenant who, or whose clerks, agents, employees
or visitors, shall have caused it.

       

      3.      No
carpet, rug or other article shall be hung or shaken out of any window of the
building; and no Tenant shall sweep or throw or permit to be swept or thrown
from the demised premises any dirt or other substances into any of the corridors
of halls, elevators, or out of the doors or windows or stairways of the building
and Tenant shall not use, keep or permit to be used or kept any foul or noxious
gas or substance in the demised premises, or permit or suffer the demised
premises to be occupied or used in a manner offensive or objectionable to Owner
or other occupants of the buildings by reason of noise, odors, and or
vibrations, or interfere in any way, with other Tenants or those having business
therein, nor shall any bicycles, vehicles, animals, fish, or birds be kept in or
about the building.  Smoking or carrying lighted cigars or cigarettes
in the elevators of the building is prohibited.

       

      4.      No
awnings or other projections shall be attached to the outside walls of the
building without the prior written consent of Owner.

       

      5.      No
sign, advertisement, notice or other lettering shall be exhibited, inscribed,
painted or affixed by any Tenant on any part of the outside of the demised
premises or the building or on the inside of the demised premises if the same is
visible from the outside of the premises without the prior written consent of
Owner, except that the name of Tenant may appear on the entrance door of the
premises.  In the event of the violation of the foregoing by any
Tenant, Owner may remove same without any liability and may charge the expense
incurred by such removal to Tenant or Tenants violating this
rule.  Interior signs on doors and directory tablet shall be
inscribed, painted or affixed for each Tenant by Owner at the expense of such
Tenant, and shall be of a size, color and style acceptable to
Owner.

       

      6.      No
Tenant shall mark, paint, drill into, or in any way deface any part of the
demised premises or the building of which they form a part.  No
boring, cutting or stringing of wires shall be permitted, except with the prior
written consent of Owner, and as Owner may direct.  No Tenant shall
lay linoleum, or other similar floor covering, so that the same shall come in
direct contact with the floor of the demised premises, and, 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, soluble in water, the use of cement or other similar adhesive material
being expressly prohibited.

       

      7.      No
additional locks or bolts of any kind shall be placed upon any of the doors or
windows by any Tenant, nor shall any changes be made in existing locks or
mechanism thereof.  Each Tenant must, upon the termination of his
Tenancy, restore to Owner all keys of stores, offices and toilet rooms, either
furnished to, or otherwise procured by, such Tenant, and in the event of the
loss of any keys, so furnished, such Tenant shall pay to Owner the cost
thereof.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      8.      Freight,
furniture, business equipment, merchandise and bulky matter of any description
shall be delivered to and removed from the premises only on the freight
elevators and through the service entrances and corridors, and only during hours
and in a manner approved by Owner.  Owner reserves the right to
inspect all freight to be brought into the building and to exclude from the
building ail freight which violates any of these Rules and Regulations of the
lease of which these Rules and Regulations are a part.

       

      9.      No
Tenant shall obtain for use upon the demised premises ice, drinking water, towel
and other similar services, or accept barbering or bootblacking services in the
demised premises, except from persons authorized by Owner, and at hours and
under regulations fixed by Owner.  Canvassing, soliciting and peddling
in the building is prohibited and each Tenant shall cooperate to prevent the
same.

       

      10.    Owner
reserves the right to exclude from the building all persons who do not present a
pass to the building signed by Owner.  Owner will furnish passes to
persons for whom any Tenant requests same in writing.  Each Tenant
shall be responsible for all persons for whom he requests such pass and shall be
liable to Owner for all acts of such persons.  Notwithstanding the
foregoing, Owner shall not be required to allow Tenant or any person to enter or
remain in the building, except on business days from 8:00 a.m. to 6:00 p.m. and
on Saturdays from 8:00 a.m. to 1:00 p.m. Tenant shall not have a claim against
Owner by reason of Owner excluding from the building any person who does not
present such pass.

       

      11.  
Owner
shall have the right to prohibit any advertising by any Tenant which in Owner’s
opinion, tends to impair the reputation of the building or its desirability as a
loft building, and upon written notice from Owner, Tenant shall refrain from or
discontinue such advertising.

       

      12.    Tenant
shall not bring or permit to be brought or kept in or on the demised premises,
any inflammable, combustible, or explosive, or hazardous fluid, material,
chemical or substance, or cause or permit any odors of cooking or other
processes, or any unusual or other objectionable odors to permeate in or emanate
from the demised premises.

       

      13.    Tenant
shall not use the demised premises in a manner which disturbs or interferes with
other Tenants in the beneficial use of their premises.

      
      

      
        
          
             

          

          
             

            
              

            

          

          
             

          

        

      

      

      RIDER TO
LEASE DATED SEPTEMBER 1, 1995

      BETWEEN
306 EAST 61ST STREET CORP., AS LANDLORD

      BUNNY
WILLIAMS, INC., AS TENANT

       

      41.           (a)        The
term of this Lease shall be for seven (7) years and shall commence within seven
(7) days of Landlord’s notification to tenant, in writing, that the work called
for in paragraph 51 of this rider has been completed and the demised premises
are available for Tenant’s occupancy.  This date shall, for the
purposes of this Lease, be the “Commencement Date”.  This Lease shall
expire seven (7) years from said Commencement Date which date shall be
determined as follows:  Commencement Date is Nov. 1,
1995.

       

      
        	
                 
      

              	
                (i)

              	
                Landlord
      shall have vacant possession of the premises no later than forty-five (45)
      days from the signing of the Lease;
and

              

      

       

      
        	
                 
      

              	
                (ii)

              	
                Landlord
      shall complete the demolition being undertaken pursuant to paragraph 51 of
      this Lease within an additional fifteen (15) days, except that in the
      event of acts of God or events beyond the reasonable control of Landlord
      (e.g., strikes, failure of building services), Landlord shall have an
      additional thirty (30) days to complete the
  demolition.

              

      

       

      In the
event Landlord is not able to obtain and deliver possession as set forth herein,
Tenant shall have the right to terminate this Lease in its entirety upon written
notice to Landlord, whereupon neither party shall have any further obligations
to the other, except Landlord shall return to Tenant all monies theretofore paid
by Tenant under this Lease.

       

      (b)        Base
rent schedule:

       

      
        
          	
                  Years
      1 & 2

                	
                  $123,250.00
      Per Annum

                	
                  $10,270.84
      Per Month

                
	
                  Years
      3, 4 & 5

                	
                  $137,750.00
      Per Annum

                	
                  $11,479.17
      Per Month

                
	
                  Years
      6 & 7

                	
                  $159,500.00
      Per Annum

                	
                  $13,291.67
      Per month

                

        

      

       

      (c)        Notwithstanding
the commencement date of this Lease, Tenant’s obligation to pay rent shall be
modified as follows:

       

      
        
          
            	
                    Yr.
      1:

                  	
                    Rent
      to commence 4 months from commencement date of Lease.

                  
	
                    Yr.
      2:

                  	
                    No
      rent obligation for last month of 2nd year (24th Mo. after Commencement
      Date)

                  
	
                    Yr.
      3:

                  	
                    No
      rent obligation for last month of 3rd year (36th Mo. after Commencement
      Date)

                  
	
                    Yr.
      4:

                  	
                    No
      rent obligation for last month of 4th year (48th Mo. After Commencement
      Date)

                  

          

        

      

       

      (d)        At
Tenant’s option, by written notice to 306 East 61 Corporation, no later than one
(1) year prior to end of the 7th year,
Tenant may extend the term of this Lease for an additional period of either
three (3) years or five (5) years, at the following rental
schedule:  (Rental is based on 7250 square feet):

       

      
        
          	
                  Years
      8, 9 & 10

                	
                  $166,750.00
      Per Annum

                	
                  $13,895.84
      Per Month

                
	
                  Year
      11 & 12

                	
                  $174,000.00
      Per Annum

                	
                  $14,500.00
      Per Month

                

        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      42.          (a)         Intentionally
omitted.

       

      (b)          Tenant
shall, during the term of this Lease and at all times that Tenant is in
possession of the demised premises, at its sole cost and expense, maintain
comprehensive general liability insurance with respect to the demised premises
and its use and occupancy thereof as herein provided with an insurance company
or companies satisfactory to Landlord providing coverage in limits of no less
than Two Million C$2,000,000) Dollars for bodily injury, and no less than One
Million ($1,000,000.00) Dollars for property damage.  Tenant shall
keep all such insurance naming Landlord, Landlord’s managing agent, any superior
lessor, any mortgagees designated by Landlord and Tenant, as
insureds.  Said insurance shall provide that the insurer will give
Landlord ten (10) days’ notice in advance of any cancellation or reduction of
coverage and that copies of all endorsements issued after the date of each
policy will be forwarded to Landlord.  Tenant shall deliver to
Landlord, prior to the commencement of the Lease term and upon request while
this paragraph 42 (b) applies, a certificate of endorsement of the aforesaid
policies.  If, at any time, Tenant shall neglect or fail to provide
and keep in force such coverage as required hereunder, Landlord may, but is not
obligated to, obtain such insurance as the agent of Tenant, the premiums
therefore to be deemed Additional Rent hereunder, and the Tenant shall, upon
demand, reimburse Landlord therefore, as Additional Rent.  Tenant’s
failure to maintain the aforesaid policies shall be a material default
hereunder.

       

      (c)          Tenant
shall also obtain, as its own cost and expense, naming both Landlord, Landlord’s
managing agent, any superior lessor, any mortgagees designated by Landlord, and
Tenant as named insured, fire insurance for all personal property which may be
affixed to the realty now located in the leased premises and including any
future installations.

       

      (d)          Notwithstanding
anything herein to the contrary, nothing herein shall prevent Landlord from
recovering in the event of fire or other loss under Landlord’s fire or other
insurance coverage for all betterments and improvements by Tenant so affixed to
the demised premises that are considered part of the realty under
law.

       

      (e)           Tenant
hereby releases Landlord, Landlord’s partners and principals, disclosed or
undisclosed, and its agents and their respective employees in respect of any
claim (including a claim for negligence) which it might otherwise have against
Landlord, Landlord’s partners, and principals, disclosed or undisclosed, and its
agents and their respective employees, for loss, damage or destruction with
respect to Tenant’s property by fire or other casualty (including rental value
or business interest as the case may be) occurring during the term of this Lease
and covered under a fire insurance policy with extended coverage endorsement in
the form normally used in respect of similar property in New York
County.

       

      43.          Each
party to this Lease hereby waives all claims for recovery from the other party
for any loss or damage to any of its property to the extent that such property
may be insured under valid and collectible insurance policies to the extent such
waiver will not invalidate any such insurance policy or policies and to the
extent policy is adequate in coverage and amount.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      44.         (a)           Landlord
will not furnish any electricity or gas for Tenant at the demised premises and
Tenant shall pay for all electricity or gas consumed, as billed by the public
utility or, if a meter is shared with an adjacent Tenant, shall pay applicable
and agreed upon apportioned charges to the Tenant as billed.  Landlord
will furnish heat to the demised premises at the same time Landlord furnishes
heat to the building of which the demised premises forms a
part.  Landlord will provide and maintain air-cooling machinery to the
demised premises.  Tenant shall pay for all refrigerant gas and
filters with reference to said air-cooling machinery.  Tenant shall,
at Tenant’s sole cost and expense, maintain, and promptly make all repairs to
all components of the electrical system within the demised premises from the
meters out.  Except as is provided for elsewhere in this
lease.  Tenant shall not be released or excused from the performance
of any of its obligations under this Lease for any failure or for interruption
or curtailment of electrical or gas service, for any reason whatsoever, and no
such failure, interruption or curtailment shall constitute a constructive or
partial eviction.

       

      (b)           Landlord
shall furnish freight elevator facilities on weekdays on Monday through Friday
from 9:00 a.m. to 5:00 p.m. except on legal holidays, and self-service passenger
elevator facilities at all times.

       

      (c)           Landlord
at its expense shall remove Tenant’s ordinary waste generated solely by office
functions from the demised premises at such regular times as Landlord shall from
time to time establish.

       

      45.         All
signs and lettering except those wholly within and not visible from outside the
demised premises will be of a type and manner approved by Landlord to conform
with the nature and character of the building.

       

      46.         Tenant
agrees (a) the business to be conducted at, through and from the demised
premises, the kind and quality of merchandise and services offered in the
conduct of such business, the sales methods in such business, as well as other
elements of merchandising, display and advertising and the appearance of the
demised premises and the furniture, fixtures, and decoration therein, and of any
signs, lettering, announcements, price schedules, tags or any other kind of
forms of inscriptions displayed in or about demised premises, will be dignified
and in conformity with the highest standards of practice at the time in question
among first-class establishments dealing in the same or similar merchandise, and
(b) not affix any signs on windows or doors of the premises with
tape.

       

      47.         Tenant
shall use and occupy the demised premises only for the purposes stated in
Article 2 of the Lease and for no other purposes.  Without limiting
the generality of the foregoing, it is an express condition of this Lease and
Tenant expressly warrants and agrees that at no time and in no event may the
demised premises, or any part thereof, be used for residential
purposes.

       

      48.         Tenant
may make alterations, additions or improvements in or to the demised premises
with the written consent of the Landlord, which consent shall not be
unreasonably withheld.  All such work, at any time undertaken by
Tenant, shall be in compliance with all rules, orders, regulations or
requirements of governmental authorities, having jurisdiction thereover and in a
good and workmanlike manner.  Workers’ compensation insurance covering
all persons employed by Tenant in this connection and general liability
insurance, in such limits as may be reasonably requested by Landlord from time
to time, shall be maintained by Tenant at Tenant’s sole cost and expense at all
times while such work is in progress and Landlord shall be named as an insured
thereunder.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

         

      

      49.        
Except as is otherwise provided in this Agreement, any alterations, additions,
or improvements to the envelope or structure of the building, in whole or in
part, undertaken by Tenant shall at the completion of the term of this Lease (or
any extension or renewal thereof) become the property of the
Landlord.  All items and installation which are not affixed
permanently to wall, floor, or ceiling, are to remain property of
Tenant.  Such items include free standing cabinets, signage, window
shades, etc.

       

      50.      
  Provided that Tenant’s use and enjoyment is not materially
interfered with, Landlord shall have the right at any time, without the same
constituting an actual or constructive eviction, and without incurring any
liability to Tenant, to change the arrangement and/or location of entrances of
passageways, corridors, elevators, stairs, toilets, or other public parts of the
building, and to change the name or number by which the building is
known.

       

      51.        
Premises are being let to Tenant “As Is”.  Notwithstanding the
foregoing, Landlord will provide the following:

       

      
        
          	
                	
                  I.

                	
                  Construct
      Demising Partitions.

                

        

      

       

      
        
          	
                	
                  II.

                	
                  Demolish
      Partitions, Ceilings and Floors, and Air-Conditioning Duct
      Work.  Premises Broom
Clean.

                

        

      

       

      52.       
 (a)           Supplementing
Article 11 of this Lease, Tenant, if it requests Landlord’s consent to an
assignment of this Lease or a subletting of all of the demised premises, shall
submit to Landlord in writing a counterpart of the proposed assignment or
subleasing agreement and the name of the proposed assignee or subtenant, the
name and character of its business, the terms of the proposed assignment or
sublease, such information as to its financial responsibility and standing and
any other information as Landlord may reasonably require.  Upon the
receipt of such request and information from Tenant, Landlord shall have an
option, to be exercised in writing with thirty (30 days) after such receipt, to
cancel and terminate this Lease, of if the request is to sublet of the demised
premises only, to cancel and terminate this Lease with respect to such portion,
in each case as of the date set forth in Landlord’s notice of exercise of such
option, which shall be not less than thirty (30) days nor more than sixty (60)
days following the service of such notice.

       

      (b)           If
Landlord shall exercise such option, Tenant shall surrender possession of the
entire demised premises, on the date set forth in such notice in accordance with
the provisions of this Lease relating to surrender of the demised premises at
the expiration of the term.

       

      (c)           If
Landlord shall not exercise the option to cancel the Lease as above required,
and Tenant is not in default of any material obligation of this Lease, then
Landlord’s consent to such request shall not be unreasonably withheld or
delayed, provided that assignee or subtenant conforms to the use permitted by
the Certificate of Occupancy of the building.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      (i)          The
proposed assignee or subtenant shall use the demised premises, or the relevant
part thereof, solely for business dealing directly with interior design,
architects, builders and the like and any otherwise permitted hereunder and in
conformity with the general tenancy of the building in which the demised
premises form a part and, in the Landlord ‘ s reasonable judgment, the proposed
assignee or subtenant is engaged in a business and the premises to be sublet or
assigned will be used in a manner which,

       

      (a)         is
in keeping with the then standard of the building; and

       

      (b)         will
not violate any negative covenant concerning “use” contained in any other Lease
in the building; however, such “use” restrictions are to be construed solely
against the Tenant and shall not affect the Landlord’s right to demise the
premises, or any relevant part thereof, for such purposes as are permitted by
law.

       

      (ii)           The
proposed assignee or subtenant is a reputable person or entity of good
character, with sufficient financial worth to meet the continuing obligation of
this Lease; and

       

      (iii)          The
proposed assignee or subtenant is not a person with whom the Landlord is then
negotiating a Lease for space in the building; and

       

      (iv)          The
form and substance of the proposed sublease or assignment shall be in the form
reasonably satisfactory to Landlord and shall comply with the applicable
provisions of this paragraph; and

       

      (v)           Tenant
shall reimburse Landlord for any reasonable costs incurred by Landlord in
connection with such assignment or subletting, including, without limitation,
any credit check or other investigation performed by Landlord, as to the
acceptability of the proposed assignee or subtenant, and any legal fees incurred
in connection therewith, which costs shall be deemed Additional Rent
hereunder.

       

      (d)           In
no event shall any assignment or subletting to which Landlord may have or may
not have consented, release Tenant from its obligations under this
Lease.  The Tenant’s right to sublet under this paragraph is personal
solely to the within named Tenant and confers no such right on any sublessee of
the named Tenant.

       

      (e)         Intentionally
omitted.

       

      (f)          In
the event that (i) Landlord fails to exercise its option under subparagraph (a)
of this paragraph and consents to a proposed assignment or sublease, and (ii)
Tenant fails to execute and deliver the assignment or sublease to which Landlord
consented within sixty (60) days after the giving of such consent, then Tenant
shall again comply with all of the provisions and conditions of subparagraph (a)
of this paragraph before assigning this Lease or subletting all or part of the
demised premises.  In no event shall any sublessee or assignee take
possession of the demised premises until Landlord’s approval has been granted
and a fully
executed original sublease or assignment, approved by Landlord, has been
delivered to Landlord.

       

      (g)           Intentionally
omitted.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

         

      

      53.         Intentionally
omitted, but see Additional Rider.

       

      54.         Landlord
shall at Tenant’s request place upon such directory board, as Landlord may from
time to time maintain in the lobby of the building, one or more names of
persons, firms or corporations other than Tenant, this shall not be deemed to
operate as an attornment to Landlord or as a consent by Landlord to an
assignment or subletting by Tenant of all or any portion of the demised premises
to such persons, firms or corporations.

       

      55.         (a)           In
the event that the amount of real estate taxes, assessments, sewer rents, rates
and charges, county taxes, transit taxes or any other governmental charge,
general or ordinary (hereinafter collectively called “taxes”), which may now or
hereafter be levied or assessed upon the land and building of which the demised
premises form a part, {hereinafter called the “real property”) attributable to
any tax year (July 1 to June 30) shall be greater than the amount of taxes on
the real property for the year July 1, 1995 to June 30, 1996 (hereinafter
referred to as the “base year”) , then the Tenant shall pay to the Landlord, as
Additional Rent, ten and eight tenths (10.8%) percent of the increase in
taxes for each such year.

       

      (b)           The
Landlord shall take the benefit of the provisions of any statute or ordinance
permitting any assessment to be paid over a period of time, and the Tenant shall
be obliged to pay only its proportionate share, determined as aforesaid, of the
installments of any such assessment as shall become due and payable during the
term of this Lease or any renewal hereof.

       

      (c)           Any
amount due the Landlord under the provisions of this paragraph shall be deemed
to be Additional Rent payable by Tenant and collectible by the Landlord as such
and shall be paid within ten (10) days after the Landlord shall have submitted a
bill to the Tenant showing in detail the computation of the amounts due the
Landlord.  Such bill shall be submitted prior to the payment by the
Landlord of each installment of real estate taxes imposed on the real
property.  Any delay or failure of Landlord in billing any amount
payable under this paragraph shall not constitute a waiver or in any way impair
the continuing obligation of Tenant to make all payments hereunder.

       

      (d)           If
the Landlord shall receive any tax refund in respect of any tax year following
the base years, the Landlord may retain out of such tax refund any reasonable
expense incurred by it in obtaining such tax refund.  Out of the
remaining balance of such tax refund, the Landlord may retain the amount of its
proportionate share of the total tax paid for such tax year.  The
Landlord shall pay to the Tenant, or apply against Fixed Annual Rent or
Additional Rent due Landlord hereunder, its proportionate share of such
remaining balance of such tax refund, such share to be determined as the
proportionate share of total tax paid (before giving effect to the refund) by
the Tenant for the year affected by such tax refund.  Any reasonable
and proper expense incurred by the Landlord in contesting the validity or the
amount of the assessed valuation, which shall not be offset by a tax refund,
shall be added to the taxes due Landlord for the tax year in which such contest
shall finally be determined.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

         

      

      (e)           The
term “real estate taxes” shall mean all taxes and assessments levied, assessed
or imposed at any time by the City of New York or any other governmental
authority upon or against the land and/or building of which the demised premises
form a part, and also any tax or assessment levied, assessed or imposed at any
time by any governmental authority in connection with the receipt of income or
rents from said land and/or building to the extent that same shall be in lieu of
all or a portion of any of the aforesaid taxes or assessments upon or against
said land and/or building.  If, due to a future change in the method
of taxation or in the taxing authority, a franchise, license, income, transit,
profit or other tax, fee or governmental imposition, however designated, shall
be levied, assessed or imposed against Landlord in substitution, in whole or in
part, for said real estate taxes, or in lieu of additional real estate taxes,
then such franchise, license, income, transit, profit, or other tax fee, or
governmental imposition shall be deemed to be included within the definition of
“real estate taxes” for the purposes hereof.

       

      (f)           In
no event shall any rent adjustment hereunder result in a decrease in the Fixed
Annual Rent.

       

      (g)           Only
Landlord shall be eligible to institute tax reduction or other proceedings to
reduce the assessed valuation of the Land or the Building.  Should
Landlord be successful in any such reduction proceedings and obtain a rebate for
any Tax Year for which Tenant has paid installments of the Tax Payment,
Landlord, after deducting the expenses shall credit Tenant’s Percentage of such
rebate against the next monthly installments of the Fixed Annual Rent payable
under this Lease.  In the event that the assessed valuation which had
been utilized in computing the Real Estate Taxes payable for the Base Tax Year
is reduced (as a result of settlement, final determination of legal proceedings
or otherwise) then (i) the Real Estate Taxes for the Base Tax Year shall be
retroactively adjusted to reflect such reduction, (ii) the monthly installments
of Additional Rent shall be increased accordingly, and (iii) all retroactive
Additional Rent resulting from such adjustment shall be payable by Tenant within
ten (10) days after the rendition of a bill therefor.

       

      56.          In
the event that both (i) the employees of Landlord become members of a union with
which Landlord is required to collectively bargain, and (ii) the amount of wages
paid by Landlord to its building employees during any year of the term of this
Lease shall be greater than the amount of wages paid by Landlord to its building
employees during the base calendar year 1995, the Tenant shall pay to the
Landlord, as Additional Rent fifteen and one-half (15.5%) percent of the
increase for each year.  This provision shall also apply in the event
Landlord, at its sole discretion, adds one additional employee to the existing
staff of four employees.

       

      57.          (a)           In
the event that the cost of fuel oil for the heating period October 1, 1994 to
September 30, 1995 (base period) shall increase during any succeeding base
period, then Tenant shall pay to the Landlord as Additional Rent fifteen and one
half (15.5%) percent of such increase.

       

      58.          For
purposes of this paragraph only, the following words and terms shall have the
following meaning:

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

         

      

      (a)           “WAGE
RATE” shall mean the minimum hourly rate of wages in effect from time to time
without fringe benefits (whether paid by Landlord or any contractor employed by
Landlord) computed as paid over a forty hour week to porters in Loft buildings
pursuant to an Agreement between Realty Advisory Board on Labor Relations,
Incorporated, or any successor thereto, and Local 32-B of the Building Service
Employees International Union, AFL-CIO, or any successor thereto or if such
agreement is not applicable to the building, then pursuant to the wage agreement
in force covering porters and elevator operators,- and provided, however, that
if there is no such agreement in effect prescribing a wage rate for porters,
computations and payments shall thereupon be made upon the basis of the regular
hourly wage rate actually payable to porters by Landlord or by Landlord’ s
service contractors over a forty hour week.

       

      (b)           “BASE
WAGE RATE” shall mean the Mage Rate in effect as of January 1,
1995.  To the best of Landlord’s knowledge, the Base Wage Rate for
such period is $548.24 per Week/$13.70 per hour.

       

      (c)           “GROSS
AREA OF THE DEMISED PREMISES” shall mean 7250 square feet.

       

      (d)           The
term “PORTERS” shall mean that classification of non-supervisory employees who
devote a major portion of their time to general cleaning, maintenance and
miscellaneous services and are the type of employees who are now included in the
classification of “Class A-Others” in the Office Building Agreement between the
Realty Advisory Board and the aforesaid Union.

       

      (e)           “OPERATION
YEAR” shall mean each calendar year in which occurs any part of the term of this
Lease.

       

      (f)           “BUILDING
EMPLOYEES” shall be defined as full time superintendents, porters, maintenance
men and the like.

       

      If the
Wage Rate (in dollars per hour) in any Operation Year shall be increased above
the Base Wage Rate, then Tenant shall pay, as Additional Rent for such Operation
Year, an amount equal to the product obtained by multiplying the Gross Area of
the Demised Premises by one ($.01) cent for each cent by which the Wage Rate is
greater than the Base Wage Rate.  Such amounts will be prorated for
any partial calendar years during the term.  Landlord shall give
Tenant written notice of each change in the Wage Rate which will be effective to
create or change Tenant’s obligation to pay Additional Rent pursuant to the
provisions of the Article and such notice shall contain Landlord’s calculation
of the annual rate of Additional Rent payable resulting from such increase in
Wage Rate.

       

      Every
notice given by Landlord shall be conclusive and binding upon Tenant unless
within thirty (30) days after the receipt of such notice Tenant shall notify
Landlord that Tenant disputes the correctness of the notice, specifying the
particular respects in which the notice is claimed to be incorrect and pending
the determination of such dispute, Tenant shall pay Additional Rent in
accordance with Landlord’s notice and such payment or acceptance shall be
without prejudice to Tenant’s position.

       

      The
amounts hereunder shall be collected as Additional Rent and shall be paid in the
following manner:

       

      Landlord,
after the effective date of any change in the “Wage Rate”, shall furnish Tenant
with a statement thereof, and all monthly installments of fixed rent thereafter
due shall reflect one-twelfth (l/12th) of the annual amount of such adjustment
until a new adjustment becomes effective, pursuant to the provisions of this
paragraph 58.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

         

      

      If any
such Wage Rate statement is furnished to Tenant after the commencement of the
effective date of any such adjustment, there shall be promptly paid by Tenant to
Landlord an amount equal to the portion of such adjustment allocable to that
part of the operation which shall have elapsed prior to the first day of the
calendar month next succeeding the calendar month in which said statement was
furnished to Tenant.

       

      59.           All
Additional Rent Payments.  (1)  Subject to Tenant’s rights
as set forth herein to dispute the mathematical correctness of any statement,
bill or demand furnished by Landlord with respect to any item of Additional Rent
provided for in this Lease, Tenant’s obligation to make any Additional Rent
payments provided for in this Lease shall be absolute and not conditioned on the
happening of any act, thing, or occurrence, including without limitation the
time or timeliness at or with which such statement, bill or demand is furnished
to or made upon Tenant, other than the occurrence of cost increases giving rise
to the obligation to make such payments.  Landlord’s failure during
the term of this Lease to prepare and deliver any statements or bills, required
to be delivered to Tenant hereunder, or Landlord’s failure to make a demand
under any other provision of this Lease shall not in any way be deemed to be a
waiver of, or cause Landlord to forfeit or surrender its rights to collect any
Additional Rent which may have become due pursuant to any provisions herein
during the term of this Lease.  Tenant’s liability for the Additional
Rent due under any provisions of this Lease shall survive the expiration or
sooner termination of this Lease.

       

      (2)           In
no event shall any adjustment of any payments payable by Tenant in accordance
with the provisions of this Lease result in a decrease in Fixed Annual Rent, nor
shall any adjustment of any Additional Rent payable by Tenant pursuant to any
provision of this Lease result in a decrease in any other Additional Rent
payable by Tenant pursuant to any provisions of this Lease, it being agreed and
understood that the payment of Additional Rent under this Lease is an obligation
supplemental to Tenant’s obligations to pay Fixed Annual Rent and any Additional
Rent pursuant to any other provision of this Lease.  However, Landlord
and the Tenant agree that with respect to Porter’s wage formula, only that
Tenant shall not pay in excess of the following amounts per square foot for the
years described below:

       

      
        
          	
                  (a)

                	
                  For
      years 1 & 2 of the lease

                	
                  $.85
      per square foot;

                
	
                  (b)

                	
                  For
      years 3, 4 & 5 of the lease

                	
                  $.95
      per square foot;

                
	
                  (c)

                	
                  For
      years 6 & 7 of the lease

                	
                  $1.10
      per square foot;

                
	
                  (d)

                	
                  For
      years 8, 9 & 10 of the lease

                	
                  $1.15
      per square foot;

                
	
                  (e)

                	
                  For
      years 11 & 12 of the lease

                	
                  $1.20
      per square foot.

                

        

      

       

      (3)           If
a lease year shall end after the expiration or termination of this
Lease.  The Additional Rent payable by Tenant in respect thereof shall
be prorated to correspond to that portion of such Year occurring within the term
of this Lease.

       

      60.          If
there now is, or shall be installed in the building a “sprinkler system” and
said system or any of its appliances shall be damaged or injured or not in
proper working order solely by reason of any act or omission of Tenant, Tenant’s
agents, servants, employees, licensees, or visitors, Tenant shall forthwith
restore the same to working condition at its own expense.  Further,
Tenant shall be permitted to install sprinkler heads within the demised premises
at Tenant’s expense.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

         

      

      61.         (a)           If
the demised premises, or any part thereof, are partially damaged by fire or
other casualty, rent, until such damage is repaired, shall be apportioned as
described in Article 9 of this Lease only to the extent that the demised
premises are rendered untenable.

       

      (b)           If
the repair of any damage to the building caused by any of the events described
in Article 9(d) of the Lease would, in Landlord’s judgment, require an
expenditure of more than forty (40%) percent of the full insurable value of the
building immediately prior to the fire or other casualty, Landlord will have the
options given to it pursuant to paragraph 9, subsection (d) of the
Lease.

       

      62.          (a)           If
Tenant is in arrears in payment of rent or Additional Rent, 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 Landlord sees fit, irrespective of and
notwithstanding any designation or request by Tenant as to the items against
which any such payments shall be credited.

       

      (b)           In
case Tenant shall default in payment of any fixed rent, percentage rent,
Additional Rent or any other charge payable hereunder by Tenant to Landlord on
any date upon which the same becomes due, and such default shall continue for
five (5) days after Landlord shall have given to Tenant a written notice
specifying such default, then, in that event, 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 giving of such notice, and, in the event such notice
is given, this Lease and the term stated hereby granted (whether or not the term
shall have commenced) shall expire and terminate upon the expiration of said
three (3) days with the same effect as if that day were the date hereinbefore
set for the expiration of the term of this Lease, but Tenant shall remain liable
for damages as provided in paragraph 18 of this Lease.

       

      63.         In
the event any payment under this Lease shall be made in the form of a check from
any other person, firm or corporation other than the person, firm or corporation
named in this Lease, the acceptance of same by Landlord shall not, under any
circumstances, be deemed recognition of a subletting or any assignment of this
Lease, regardless of the number of times that such payment shall be made by such
other person, firm or corporation.

       

      64.         (a)           If
Tenant shall fail to pay all or any part of any monthly installment of Fixed
Annual Rent for more than ten (10) days after the same shall become due and
payable, Tenant shall pay as Additional Rent hereunder to Landlord a late charge
of six (6) cents for each dollar of such monthly amount of such Fixed Annual
Rent or Additional Rent which shall not have been paid to Landlord within ten
(10) days after becoming due and payable.

       

      (b)           Intentionally
omitted.

       

      (c)           The
late charge payable pursuant to sub-paragraph (a) above and the interest payable
pursuant to sub-paragraph (b) above shall be (i) payable on demand and (ii)
without prejudice to any of Landlord’s rights and remedies hereunder, at law or
in equity for nonpayment or late payment of rent or other sum and in addition to
any such rights and remedies.  No failure by Landlord to insist upon
the strict performance by Tenant or Tenant’s obligations to pay late charges as
provided in this paragraph shall constitute a waiver by Landlord of its right to
enforce the provisions of this paragraph in any instance thereafter
occurring.  The provisions of this paragraph shall not be construed in
any way to extend the grace periods or notice periods provided for in paragraph
17 of this Lease.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

         

      

      65.           Notwithstanding
anything to the contrary contained in this Lease, any monies due Landlord other
than the annual rent are deemed to be Additional Rent, and any default in the
payment of Additional Rent shall give to Landlord the same remedies as it has
with respect to a default in the payment of rent.

       

      66.           Intentionally
omitted but see Additional Rider.

       

      67.           If,
in connection with obtaining financing for the building, a bank, insurance
company or other lending; institution shall request reasonable modifications in
this Lease as a condition to such financing, Tenant will not unreasonably
withhold, delay, or defer its consent thereto, provided that such modifications
do not increase the obligations of Tenant hereunder or materially adversely
affect the leasehold interest hereby created.

       

      68.           (a)         In
the event Landlord decides, for any reason, to demolish or sell the entire
building of which the demised premises form a part, and such demolition or sale
requires in Landlord’s reasonable business judgment, the recapture of the
demised premises, Landlord shall have the right at any time to terminate and
cancel this Lease upon not less than three hundred sixty-five (365) days’ prior
written notice to Tenant, provided that Landlord makes the following payments in
escrow with Landlord’s attorneys prior to the date of recapture, which sums will
be paid over to Tenant upon Tenant vacating the demised premises:

       

      (i)          One
hundred (100%) percent of Tenant’s estimated moving expenses, subject to
adjustment for actual moving expenses incurred and verified by receipts and
cancelled checks.  Moving expenses is defined as the reasonable cost
for actual movers and moving truck obtained by competitive bidding, and shall
not include costs for new stationary, reinstallation of telephone systems,
security deposits for new space and the like; and

       

      (ii)         (1)           If
the recapture date is prior to or on the date of the end of the seventh year of
the Lease term, one hundred (100%) percent of Tenant’s Capital Costs up to a
maximum of Three Hundred Thousand Dollars ($300,000.00) as verified by receipts
and cancelled checks;

       

      (2)           If
the three year option is exercised in paragraph “41(d)” of this Lease, and the
recapture date is after the end of the seventh year of the Lease term, Tenant
shall be paid the following percentage of Tenant’s Capital Costs depending on
the month of the recapture date:

       

      Three
Year Option

       

      
        
          
            	 
      	 	
                    Month 1

                  	 	 	
                    2

                  	 	 	
                    3

                  	 	 	
                    4

                  	 	 	
                    5

                  	 	 	
                    6

                  	 	 	
                    7

                  	 	 	
                    8

                  	 	 	
                    9

                  	 	 	
                    10

                  	 	 	
                    11

                  	 	 	
                    12

                  	 
	
                    Year
      8

                  	 	 	97.2	%	 	 	94.4	%	 	 	91.7	%	 	 	88.9	%	 	 	86.1	%	 	 	83.3	%	 	 	80.6	%	 	 	77.8	%	 	 	75	%	 	 	72.2	%	 	 	69.4	%	 	 	66.7	%
	
                    Year
      9

                  	 	 	63.9	%	 	 	61.1	%	 	 	58.3	%	 	 	55.6	%	 	 	52.8	%	 	 	50	%	 	 	47.2	%	 	 	44.4	%	 	 	41.7	%	 	 	38..9	%	 	 	36.1	%	 	 	33.3	%
	
                    Year
      10

                  	 	 	30.6	%	 	 	27.8	%	 	 	25	%	 	 	22.2	%	 	 	19.4	%	 	 	16.7	%	 	 	13..9	%	 	 	11.1	%	 	 	8.3	%	 	 	5.6	%	 	 	2.8	%	 	 	0	 

          

        

      

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

         

      

      (3)           If
the five (5) year option is exercised in paragraph “41(d)” of this Lease, and
the recapture date is after the end of the seventh year of the Lease term, then
Tenant shall be paid the following percentage of Tenant’s Capital Costs based on
the month of the recapture date :

       

      Five Year
Option

       

      
        
          
            	 
      	 	
                    Month 1

                  	 	 	
                    2

                  	 	 	
                    3.

                  	 	 	
                    4

                  	 	 	
                    5

                  	 	 	
                    6

                  	 	 	
                    7

                  	 	 	
                    8

                  	 	 	
                    9

                  	 	 	
                    10

                  	 	 	
                    11

                  	 	 	
                    12

                  	 
	
                    Year
      8

                  	 	 	98.3	%	 	 	96.7	%	 	 	95	%	 	 	93.3	%	 	 	91.7	%	 	 	90	%	 	 	88.3	%	 	 	86.7	%	 	 	85	%	 	 	83.3	%	 	 	81.7	%	 	 	80	%
	
                    Year
      9

                  	 	 	78.3	%	 	 	76.7	%	 	 	75	%	 	 	73.3	%	 	 	71.7	%	 	 	70	%	 	 	68.3	%	 	 	66.7	%	 	 	65	%	 	 	63.3	%	 	 	61.7	%	 	 	60	%
	
                    Year
      10

                  	 	 	58.3	%	 	 	56.7	%	 	 	55	%	 	 	53.3	%	 	 	51.7	%	 	 	50	%	 	 	48.3	%	 	 	46.7	%	 	 	45	%	 	 	43.3	%	 	 	41.7	%	 	 	40	%
	
                    Year
      11

                  	 	 	38.3	%	 	 	36.7	%	 	 	35	%	 	 	33.3	%	 	 	31.7	%	 	 	30	%	 	 	28.3	%	 	 	26.7	%	 	 	25	%	 	 	23.3	%	 	 	21.7	%	 	 	20	%
	
                    Year
      12

                  	 	 	18.3	%	 	 	16.7	%	 	 	15	%	 	 	13.3	%	 	 	11.7	%	 	 	10	%	 	 	8.3	%	 	 	6.7	%	 	 	5	%	 	 	3.3	%	 	 	1.7	%	 	 	0	 

          

        

      

       

      (b)           Tenant’s
Capital Costs shall be those costs incurred by Tenant in building out the
demised premises as verified by receipts and cancelled checks, and which remain
as leasehold improvements and fixtures and as a permanent part of the premises,
in a total amount not to exceed $300,000 as set forth above.

       

      (c)           Upon
date of termination set forth in Landlord’s notice to Tenant, and provided
Landlord has made the payments set forth above, the demised term shall cease and
expire and Tenant’s rights hereunder shall cease with the same effect as though
such date were the date originally set forth for the expiration of the demised
term, and Tenant shall vacate and deliver the demised premises vacant and broom
clean on or before such termination date.  In the event Tenant does
not vacate as required hereunder, Tenant loses all rights to the payments
described above.

       

      69.         (a)           Intentionally
omitted.

       

      (b)           The
parties recognize and agree that the damage to Landlord resulting from any
failure by Tenant’s timely surrender of the demised premises will be
substantial, will exceed the amount of monthly rent theretofore payable
hereunder, and will be impossible of accurate measurement.  Tenant
therefore agrees that if possession of the demised premises is not surrendered
to Landlord within ten (10) days after the date of the expiration or earlier
termination of the terms of this Lease, then Tenant will pay Landlord, as
liquidated damages, for each month and for each portion of any month during
which Tenant holds over in the demised premises after expiration or termination
of the term of this Lease, a sum equal to one and one-half (1.5) times the
average rent and Additional Rent which was payable per month under this Lease
during the last six (6) months prior to termination date.  Such
remedies shall be in addition to and not in lieu of eviction.

       

      (c)           The
payments required to be made by Tenant pursuant to sub-paragraph (b) above shall
be (i) payable on demand, and (ii) without prejudice to any of Landlord’s rights
and remedies hereunder at law or in equity for Tenant’s delay in surrendering
the demised premises in accordance with the terms of this Lease upon the
expiration or earlier termination of this Lease.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

         

      

      70.           Notwithstanding
paragraph 28 of the printed portion of this Lease, all notices by either party
to the other shall be given by registered or certified mail, return receipt
requested.  A refusal to accept delivery shall be deemed
notification.

       

      71.           Tenant
shall give notice to Landlord, in writing, promptly after Tenant learns of any
accident in or about the demised premises.  This notification shall
not be deemed to imply or impose any liability upon Landlord relating to such
accident.

       

      72.           Tenant
agrees, at any time and from time to time, as requested by Landlord, upon not
less than ten (10) days’ prior notice, to execute and deliver 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 as modified and
stating the modifications), certifying the dates to which the 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 stating whether or not, to the best knowledge of
Tenant, any event has occurred which the giving of notice or passage of time, or
both, would constitute such a default, and if so, specifying each such
event.

       

      73.           Tenant
shall look only to Landlord’s estate and property in the building for the
satisfaction of Tenant’s remedies for the collection of a judgment (or other
judicial process) requiring the payment of money by Landlord in the event of any
default or breach of Landlord hereunder, and no other property or assets of
Landlord or its partners or principals, disclosed or undisclosed, shall be
subject to lien, levy, execution 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 or occupancy of
the demised premises; and if Tenant shall acquire a lien on such other property
or assets by judgment or otherwise, Tenant shall promptly release such lien by
executing and delivering to Landlord an instrument to that effect prepared by
Landlord.

       

      74.           If
Tenant shall request Landlord’s approval or consent and Landlord shall fail or
refuse to give such approval or consent, Tenant shall not be entitled to any
damages for any withholding or delay of such approval or consent by Landlord, it
being intended that Tenant’s sole remedy shall be an action for injunction or
specific performance (the rights to money damages or other injunction being
hereby specifically waived), and that such remedy shall be available only in
those cases where Landlord shall have expressly agreed in writing not to
unreasonably withhold its consent or approval or where as a matter of law
Landlord may not unreasonably withhold its consent or approval.

       

      75.           Tenant
shall and hereby does waive its right and agrees not to interpose any
counterclaim of whatever nature and description, in any proceeding or action
which may be instituted by Landlord against Tenant to recover rent, Additional
Rent, other charges, or for damages, or in connection with any matters or claims
whatsoever arising out of or in any way connected with this Lease, or any
renewal, extension, holdover, or modification thereof, the relationship of
Landlord and Tenant, or Tenant’s use or occupancy of said
premises.  This clause, as well as the “waiver of jury trial”
provision of this Lease, shall survive the expiration, early termination, or
cancellation of this Lease or the terms thereof.  Nothing herein
contained, however, shall be construed as a waiver of Tenant’s right to commence
a separate action on a bona fide claim against Landlord.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

         

      

      76.           Tenant
expressly acknowledges and agrees that Landlord has not made and is not making,
and Tenant, in executing and delivering this Lease, is not relying upon any
warranties, representations, promises, or statements, except to the extent that
the same are expressly set forth in this Lease.

       

      77.           If
any conflict shall arise between any of the provisions of this Rider and any of
the terms, printed or typewritten, of the printed portion of the Lease to which
this Rider is attached, all such conflicts shall be resolved in favor of the
provisions of this Rider.

       

      78.           This
Lease shall be governed by and construed in accordance with the laws of the
State of New York.  If any provisions of this Lease or the application
thereto to any person or circumstances for any reason and to any extent, be
invalid or unenforceable, the remainder of this Lease and the application of the
provisions to other persons or circumstances shall not be affected but rather
shall be enforced to the extent permitted by law.  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 provisions of this Lease.  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 content may require.

       

      79.           Definitions
and captions.  The captions, numbers and definitions herein are
inserted only as a matter of convenience and are not intended to define, limit,
construe or describe the scope or intent of any paragraph nor in any way affect
this Lease.  In conjunction therewith, the defined term “Landlord” as
used in this Rider shall be deemed to be one and the same as the defined term
“Owner” as used in the printed portion of this Lease.

       

      80.           This
Lease shall not be binding upon Landlord unless and until it has been duly
executed by Landlord and delivered by Landlord to Tenant.

       

      81.           Intentionally
omitted.

       

      82.           If
Landlord shall incur any expense (whether paid or not) arising from either (a)
its performance of any act which Tenant is required to perform hereunder; or (b)
enforcement of any of its legal rights or remedies against Tenant, whether
related to a default by Tenant hereunder or otherwise, and whether or not formal
legal action or proceedings be commenced; or (c) its successful-defense of any
action or proceeding brought by Tenant whether such action be related to a
provision of this Lease or otherwise; or (d) its successful prosecution of any
counterclaim or third party claim in the context of an action or third party
action brought against it by Tenant, such expense, including attorney’s fees and
disbursements, shall be paid by the Tenant to the Landlord on demand as
additional rent and is collectable by Landlord as additional
rent.  The terms “successful defense” and “successful prosecution” as
used herein shall mean any determination on the merits by a Court of competent
jurisdiction in favor of the Landlord or, in the event of default by Tenant, the
entry of default judgement against him, her or it.

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

         

      

      83.           If
at any time, after the second (2nd) year of this Lease (determined from the
Commencement Date of the Lease) and so long as Tenant is in substantial
compliance with this Lease, Landlord desires to lease the balance of the space
on the fifth (5th) floor, which is not occupied by Bunny Williams, Inc.,
(Tenant), as shown on Exhibit “A” (Option Space) Landlord shall give written
notice to Williams of its intention to lease the space and setting forth the
specific terms under which the option space is to be leased.  Tenant
(Williams) will have ten (10) business days after receipt of Landlord’s notice
to elect to lease the option space pursuant to the terms set forth
therein.

       

      In the
event Tenant (Williams) exercises its Right of First Refusal, Lease shall be
entered into between Owner and Tenant within twenty (20) business days after
receipt by Owner of Tenant’s notice exercising the Right of First Refusal with
the terms and conditions as mutually agreed upon, and if Tenant does not execute
within ten {10) business days, or, if Tenant notifies Landlord that it will not
lease space, Landlord may lease said space to any party with any terms Landlord
deems appropriate.

       

      84.           Tenant
represents that it dealt with no broker in connection with this matter, other
than Collins Tuttle and Company, Inc. and Landlord agrees to pay said broker
pursuant to separate agreement.  For any breach by Tenant of this
representation, Tenant agrees to hold Landlord harmless and indemnify Landlord
from any claim made by any other broker, which indemnification shall include
Landlord’s reasonable legal fees.

       

      85.           Tenant
has not, as of signing this lease, delivered detailed drawings, plans or
specifications for its work.  Therefore, whenever herein Landlord’s
approval is deemed given for Tenants work, such approval shall not be given
until receipt and review of the requisite plans, drawings and
specifications.  Further, such approval from Landlord shall not be
unreasonably withheld or delayed.

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

      SEE
ANNEXED ADDITIONAL RIDER FOR ADDITIONAL TERMS AND CONDITIONS.

       

      
        
          
            
              
                	 
      	
                        306
      EAST 61ST STREET CORP.

                      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	
                        By:

                      	
                        /s/ Peter M. Bernholz

                      	 
      	
                        Date:

                      	
                        10/17/95

                      	 
	 
      	
                        PETER
      M. BERNHOLZ, PRESIDENT

                      	 
      	 
      	 
      	 
	 
      	 
      	 
      	 
      	 
      	 
	 
      	
                        BUNNY
      WILLIAMS, INC.

                      	 
      	
                        Date:

                      	
                        October 2, 1995

                      	 
	 
      	 
      	 
      	 
      	 
      	 
	
                        By:

                      	
                        /s/ Bunny Williams

                      	 
      	 
      	 
      	 
	 
      	
                        BUNNY
      WILLIAMS, PRESIDENT

                      	 
      	 
      	 
      	 

              

            

          

        

      

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

      ADDITIONAL
RIDER TO LEASE

      BETWEEN
BUNNY WILLIAMS, INC. (TENANT)

      AND 306 EAST 61 CORPORATION
(LANDLORD)

       

      85.           Notwithstanding
anything else contained in this Lease to the contrary, Tenant shall only be
obligated to make such repairs to the Demised Premises as shall be necessitated
solely by the negligence of Tenant (except fire or other casualty caused by
Tenant’s negligence, if the fire or other casualty insurance policies insuring
Landlord are not invalidated by this provision, in which event, Landlord will
look solely to its own insurance to pay for such repairs) or by the use of the
Demised Premises in a manner contrary to the purposes for which same are leased
to Tenant, as and when needed to preserve them in good working order and
condition less ordinary wear.

       

      86.           Reference
is made to paragraph 73 of this Lease.  The provisions of that
paragraph shall not apply to any sum which shall be paid or payable to or on
behalf of Landlord or any party claiming through Landlord if such payment shall
be based on an event (which had previously occurred) which shall give rise to a
duty on Landlord’s part to repair, restore, or replace any part of the Demised
Premises, including any structures thereon.  The provisions of that
paragraph 73 shall apply to Landlord.  They shall not be for the
benefit of any insurance company nor any other third party.

       

      87.           Landlord
shall, at Landlord’s expense, upon Tenant’s request, list on the Building’s
directory, as well as on nameplates in all elevator cabs servicing the Demised
Premises, Tenant’s name, and, if any, its principal and any other party
occupying any part of the Demised Premises pursuant to this Lease; more than
four (4) listings in the directory and two (2) in each elevator cab shall be at
Tenant’s expense.

       

      88.           In
the event that Landlord fails to effect or commence effecting repairs for which
Landlord is responsible under this Lease, within twenty (20) days after written
notice to Landlord by Tenant, Tenant may, without further notice, but shall not
be obligated to, effect such repairs and all costs incurred by Tenant by reason
thereof, shall be deducted from all installments or rent (and additional rent,
if any) next becoming due.

       

      89.           Notwithstanding
anything contained elsewhere in this Lease to the contrary, if the curtailment
of any service materially interferes with Tenant’s normal business operations,
and such service is not restored or provided within ten (10) days after Tenant
so notifies Landlord in writing, the rent, and additional rent, if any, shall
abate for the period Tenant is deprived of such services and only if Tenant is
unable to perform its normal business operations until the services are restored
or provided.  The Tenant’s rights hereunder are in addition to all
other rights and remedies available to Tenant under this Lease or as may
otherwise be provided by law.

       

      90.           Landlord
represents that the Certificate of Occupancy issued for the building permits use
of the Demised Premises for the purposes stated in Article 2 of this
Lease.

       

      91.           Notwithstanding
anything contained in this Lease to the contrary, Landlord shall, at all times,
and at its sole cost and expense, be solely responsible for effecting compliance
with all laws, ordinances and governmental regulations, including the Americans
with Disabilities Act, applicable to the Building within which the Demised
Premises are a part.  Tenant’s work (and if Tenant renovates the
bathrooms) will, at Tenant’s expense, comply with applicable laws, ordinances
and governmental regulations.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      92.           Landlord
shall request from the holder of any future mortgage to which this Lease is
subordinate, a non-disturbance agreement in favor of Tenant to the effect that,
provided Tenant is not in material default under this Lease, Tenant’s rights
hereunder shall not be disturbed in the event of the foreclosure of any such
mortgage or the termination of any such lease.  Notwithstanding
anything in this Lease to the contrary, in no event shall this Lease or Tenant’s
occupancy be subordinate to the mortgage of a present or future private
Mortgagee (i.e., not a
bank or commercial lending institution).

       

      93.           Landlord
warrants that there is no asbestos in Tenant’s Demised Premises and that if any
asbestos is discovered, it will be removed or encapsulate, as appropriate, by
Landlord at Landlord’s sole cost and expense.

       

      94.           The
Tenant shall not be responsible for any charges associated with its use of the
freight elevator during normal business hours throughout the construction of the
Demised Premises for its initial occupancy nor its move-in period.

       

      95.           Anything
contained in this Lease to the contrary notwithstanding, (i) any sale of the
stock of Tenant or of its assets to one or more family member (such term to
include spouses, siblings, parents or children having attained majority or
persons who own stock in Tenant), or (ii) any sale of all or substantially all
of the stock of Tenant, or all or substantially all of its assets or any merger
or consolidation in or with another entity, pursuant to any of which transaction
all of Tenant is transferred as a going business shall not require Landlord’s
approval provided, however, Landlord receives at least thirty (30) days’ prior
written notice of any such transactions, together with a copy of any executed
instruments of sublease or assignment relating to the Demised
Premises.  If as a result of such transfers, Bunny Williams is not at
least a ten (10%) percent owner of Tenant, then Landlord may request two (2)
months additional security from Tenant.

       

      96.           Wherever
in this Lease Landlord is required to give Tenant notice of default and, as a
result thereof, Landlord is permitted to take certain actions by reasons of the
default after a stated period of time expires, it is intended that Tenant shall
always have the right to cure, or to commence to cure, the default within such
period of time.

       

      97.           Landlord
shall deliver the Demised Premises in compliance with all local laws and codes
and free of all violations.

       

      98.           Landlord
represents that as of the Commencement Date and throughout the Lease Term, the
Building Systems will be in good working order.  For the purposes of
this paragraph, the term “Building Systems” shall include, but not be limited
to, the electrical, plumbing, heating and ventilation systems.

       

      99.           In
addition to all remedies Tenant may otherwise have against Landlord by way of
law or under this Lease Agreement, should Tenant obtain a judgment against
Landlord, Tenant may, at Tenant’s discretion, seek to satisfy the judgment by
setting-off against any monies due or thereafter due to be paid by Tenant to
Landlord, including Base Rent and Additional Rent, until such time as the
judgment is fully satisfied.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

         

      

      100.         Except
with respect to the provisions concerning payment of rent wherever in this Lease
the words “three (3) days” appear it shall be deemed to be “five (5) days”;
“five (5) days” shall deemed “ten (10) days”; “ten (10) days” shall be deemed
“twenty (20); and “fifteen (15) days” shall be deemed “thirty (30)
days.”

       

      101.         Reference
is made to paragraph 69 of this Lease.  The provisions contained
therein shall not apply however for so long as Tenant holds over after
expiration or sooner termination of this Lease due to acts of God or
circumstances beyond the reasonable control of Tenant (building strikes, failure
of building services) and only for the period Tenant cannot move out because of
such circumstances.

       

      102.         The
security deposit shall be placed in an interest bearing account with interest
accrued thereon.

       

      103.         [Intentionally
omitted.]

       

      104.         Where
Landlord’s consent or approval is required under this Lease, such consent or
approval shall not be unreasonably withheld or delayed.  Landlord’s
failure to respond within thirty (30) days to any Tenant’s request for its
consent shall be deemed to be a consent to Tenant’s request.  The
failure or refusal of Landlord to grant such consent or approval, or Landlord’s
delay in granting same, shall not in any way subject Landlord to any claims for
monetary damages, it being understood that Tenant’s sole remedy in the event
Landlord shall withhold or delay its consent or approval shall be to seek either
a declaratory judgment or injunctive relief.  In the event Tenant
successfully obtains such declaratory judgment or injunctive relief, Tenant
shall be entitled to receive from Landlord its reasonable attorney’s fees and
disbursements incurred by Tenant in connection therewith.  In the
event Landlord is successful in such proceeding, then Landlord shall be entitled
to receive its reasonable attorney’s fees and disbursements incurred by Landlord
in connection therewith.

       

      105.         Annexed
hereto is a copy of Tenant’s preliminary plans for alterations to the Demised
Premises.  Landlord hereby consents to all of the work described
therein (and to all work which may be reasonably contemplated by the preliminary
plans.) Tenant may utilize contractors of its sole choice in regard to all of
Tenant’s work.

       

      106.         Reference
is made to paragraph 56 of this Lease for the purposes of the provisions
contained therein, the term “employee” shall mean only the following
individual:

       

      Porter

      Elevator
Operator

      Building
Superintendent

      Security
Guard

       

      107.         Tenant
shall be permitted at all times to make all decorative and cosmetic changes to
the Demised Premises without obtaining Owner’s prior consent, provided that such
change does not impact upon the building systems or the other tenants and such
changes will be in compliance with all applicable laws.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      108.       Reference
is made to paragraph 44.  Landlord will furnish heat at no expense to
Tenant in accordance with the provisions of paragraph 31 of the
Lease.

       

      109.       For
the purposes of paragraph 52 of the Lease, Landlord’s right to recapture and
terminate the Lease shall be applicable only to Tenant’s request to consent to
an assignment of either (i) all of the premises leased hereunder or (ii) the
separate spaces designated on Exhibit A, it being intended that Landlord shall
not have the right to recapture any portion or portions of the separate spaces
indicated in Exhibit A.

       

      110.       Tenant
shall have the unrestricted right at any time and times throughout the term of
this Lease without having to obtain Landlord’s consent to:

       

      a.           Sublease,
license or assign portions of the Demised Premises (not to exceed fifty (50%)
percent of the Demised Premises) to a separate business entity or persons in
which neither Tenant nor its principal, Bunny Williams, has an ownership
interest which provides drafting and/or architectural services to the benefit of
Tenant and other unrelated parties; and

       

      b.           Sublease,
license or assign the Demised Premises, in whole or in part, to any entity in
which Bunny Williams individually is a principal, owning at least twenty-five
(25%) percent of such entity, provided such use is consistent with the permitted
uses hereunder.

       

      111.       If
at the commencement of, or at any time, or times during the term of this Lease,
the rents reserved in this Lease shall not be fully collectible for reason of
any Federal, State, county or City law, proclamation, order or regulation or
direction of a public officer or body pursuant to law, Tenant shall enter into
such agreements 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 may from time to time during the continuance of
such legal rent restriction be legally permissible (and not in excess of the
amounts reserved therefor under this Lease).  Upon the termination of
such legal rent restriction prior to the expiration of the term of this Lease,
(a) the rents shall become and thereafter be payable hereunder in accordance
with the amounts reserved in this Lease for the periods following such
termination and (b) Tenant shall pay to Landlord, if legally permissible, (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 to Landlord during the
period or periods such legal rent restriction was in effect.

       

      112.       Notwithstanding
anything contained in the Lease to the contrary, Tenant shall have the right to
remove at expiration or sooner termination of the Lease, all of Tenant’s
decorative installations notwithstanding the fact that such decorative
installations may be affixed to the Demised Premises provided that Tenant
repairs any damage caused by such removal.  Standard lighting fixtures
(i.e., highhats) will
not be removed.  Tenant’s plans will indicate which work is Tenant’s
decorative installation.

       

      113.       Landlord
hereby consents to the work to be performed by Tenant as is described in the
annexed plans and Landlord further agrees that Tenant may perform all such work
by contractors of Tenant’s choice.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      114.       Notwithstanding
anything contained in the Lease to the contrary, Landlord shall, at Landlord’s
sole cost and expense, maintain the air conditioning unit servicing the Demised
Premises.  Landlord represents that the air conditioning unit
servicing the Demised Premises shall service only the Tenant’s premises and no
other tenant’s premises.

       

      115.       Landlord
agrees at Landlord’s expense to have one electric meter installed to service
only Tenant’s Demised Premises and no other tenant’s premises.

       

      116.       Landlord
represents that there is no ground lease affecting the Demised
Premises.

       

      117.       Notwithstanding
anything contained in the Lease to the contrary or otherwise, a sale or transfer
of fifty (50%) percent or less of Tenant stock to any party shall not be deemed
to constitute an assignment of or sublease under this Lease.

       

      118.       This
Lease shall not be construed either as against Landlord or Tenant solely because
of the identity of the drafter, in recognition of the arm’s length negotiation
and drafting of its terms.

       

      119.       Reference
is a made to paragraph 44.  Tenant’s obligation to maintain and repair
the components of the electrical system within the demised premises from the
meter out is limited solely to maintenance or repairs necessitated by reason of
defects or deficiencies in Tenant’s initial installation of these components or
Tenant’s use of the system.  In all other respects, it shall be the
obligation of the Landlord to maintain and repair the electrical
system.

       

      120.       Reference
is made to paragraph 51 concerning Landlord’s work.  By way of
clarification, Landlord will, among other things unless requested otherwise by
Tenant, remove inactive (not servicing other parts of the building) all
electrical, mechanical, plumbing and other systems (other than the sprinkler
systems) up to the floor joists and sub-floor decking between the joists, remove
all existing ceiling tile and framing which supports it, lighting and wiring
from existing panel throughout demised premises, insulation, cap flush to the
wall, floors and ceiling protruding parts of such systems.

       

      
        
           

        

        
          5

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