Document:

Exhibit 10.18

SECOND
AMENDMENT TO

AECOM TECHNOLOGY CORPORATION

SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN

THIS
AMENDMENT,by
AECOM Technology Corporation, hereinafter sometimes referred to as the “Company”,
is made with reference to the following facts:

Effective January 1,
1996, AECOM Technology Corporation adopted the AECOM Technology Corporation Supplemental Executive Retirement Plan,which reserves to the Board of Directors
of AECOM Technology Corporation the right to amend said Plan (Section 4.1
thereof). The Company has executed this Second Amendment for the purpose of
amending said Plan in the manner hereinafter provided.

NOW,
THERFORE,the
AECOM Technology Corporation Supplemental Executive Retirement Plan is hereby
amended, effective April 1, 2004, by amending Section 2.20 to read as follows:

“2.20                    Unlimited
AECOM Pension Plan Benefit means the annual benefit the Participant would
have received under the AECOM Pension Plan if:

a.                         Code
Section 401(a)(17) and 415 did not apply;

b.                        the
benefit was paid as a single life annuity commencing on the Participant’s
Retirement Date;

c.                         there
was no actuarial reduction in the AECOM Pension Plan for commencement of
benefits at age 62 or later;

d.                        the
AECOM Pension Plan permitted retirement at any age;

e.                         the
$200,000 limitation on compensation in Section 2.11 (a) of the AECOM Pension
Plan did not apply; and

f.                           Section
3.1 (a)(2) of the AECOM Pension Plan, which excludes from participation certain
individuals who are eligible for the AECOM Technology Corporation Incentive
Compensation Plan, did not apply.”

IN WITNESS WHEREOF, the
Company has caused this Second Amendment to be executed as of April 1, 2004.

	
  

  	
  AECOM Technology
  Corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephanie A. Hunter

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Corporate Secretary

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
  March 4, 2004Exhibit 10.19

 

 

 

SECOND
SUPPLEMENTAL AGREEMENT OF LEASE

 

between

 

605 THIRD AVENUE FEE LLC,
Landlord

 

and

 

DMJM
+ HARRIS, INC., Tenant

 

 

 

 

Dated as of  November 15, 2005

SECOND SUPPLEMENTAL AGREEMENT OF LEASE (this “Agreement”) made as of the 15th day of November, 2005, between 605 THIRD
AVENUE FEE LLC, a Delaware limited liability company, having an office c/o
Fisher Brothers, 299 Park Avenue, New York, New York 10171 (“Landlord”) and DMJM + HARRIS, INC.,
formerly known as Frederic R. Harris, Inc., a New York corporation, having an
office at 605 Third Avenue, New York, New York 10158 (“Tenants”).

W I T N E S S
E T H:

WHEREAS, Landlord’s predecessor-in-interest, 605 Third
Avenue LLC, and Tenant entered into that certain Agreement of Lease dated as of
March 17, 1999 (the “Original Lease”),
pursuant to which Landlord leased to Tenant and Tenant leased from Landlord the
entire 30th Floor and 31st Floor in the building located at 605 Third Avenue,
New York, New York (the “Building”);

WHEREAS, AECOM Technology Corporation (“Guarantor”) executed a Guaranty of
Lease in favor of Landlord, dated as of March 17, 1999 (the “Guaranty”). guarantying the performance
of Tenant’s obligations under the Lease;

WHEREAS, Landlord and Tenant entered into that certain
First Supplemental Agreement of Lease dated as of August 31, 2004 (the “First Supplement”; the Original Lease
as modified by the First Supplement being herein the “Lease”) pursuant to which Landlord
leased to Tenant and Tenant leased from Landlord the entire 27th Floor and 29th
Floor in the Building (together with the 30th Floor and the 31st Floor,
collectively, the “Existing Premises”)

WHEREAS, Landlord and Tenant desire to modify and
amend the Lease to provide for the inclusion in the premises demised thereunder
(the “demised
premises”) of certain
additional space in the Building and to modify and amend the Lease in certain
other respects, all as more particularly set forth herein;

NOW, THEREFORE, in consideration of the agreements
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:

ARTICLE 1

TERMS

Section 1.1. Except as otherwise defined herein, all
terms used in this Agreement shall have the meanings provided in the Lease. The
term “this
Lease” or “the Lease” as used in the Lease shall mean the
Original Lease as extended and modified pursuant to the First Supplement and
this Agreement.

ARTICLE 2

EFFECTIVE DATE OF
AGREEMENT

Section 2.1. This Agreement and all of the terms,
provisions and conditions hereof shall be effective as of the date hereof (the “Effective Date”).

ARTICLE 3

ADDITIONAL PREMISES

Section 3.1. Commencing on December 1, 2005 (the “Additional Premises
Adjustment Date”), and
for the entire term of the Lease, there shall be added to and included in the
demised premises the entire rentable portion of the twenty-eighth (28th) floor
of

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the Building (the “Additional Premises”), as more particularly shown as hatched on Exhibit Aannexed hereto. As of the Additional Premises Adjustment Date, Landlord
does hereby lease to Tenant and Tenant does hereby hire from Landlord the
Additional Premises, and all references in the Lease to the “demised premises”
shall be deemed to include the 28th Floor, subject and subordinate to all
superior leases and superior mortgages as provided in the Lease and upon and
subject to all the covenants, agreements, terms and conditions of the Lease, except
as modified by this Agreement.

Section 3.2. The Additional Premises shall be used
solely for the purposes permitted under the Lease.

Section 3.3. Except as provided herein, Tenant waives
any right to rescind this Agreement under Section 223-a of the New York Real
Property Law or any successor statute of similar nature and purpose then in
force and further waives the right to recover any damages which may result from
Landlord’s failure for any reason to deliver possession of the Additional
Premises pursuant to the terms and conditions contained herein on the date set
forth herein as the Additional Premises Adjustment Date. If Landlord shall be
unable to give possession to Tenant of the Additional Premises on the
Additional Premises Adjustment Date pursuant to the terms and conditions
contained herein, and provided that Tenant is not responsible for such
inability to give possession, the Additional Premises Adjustment Date shall be
postponed to the date upon which Landlord shall have delivered possession of
the Additional Premises to Tenant pursuant to the terms and conditions
contained herein. No such failure to give possession on the Additional Premises
Adjustment Date shall in any way affect the validity of this Agreement or the
Lease or the obligations of Tenant hereunder or under the Lease or give rise to
any claim for damages by Tenant or claim for rescission of this Agreement

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or the Lease, nor shall the same be construed in any way to extend the
term of the Lease as it relates to the Additional Premises. In the event that
Landlord is unable to deliver possession of the Additional Premises to Tenant
pursuant to the terms and conditions contained herein on the date set forth
herein as the Additional Premises Adjustment Date due to the holding over by the
current tenants or other occupants in the Additional Premises beyond the term
of such tenants’ leases, Landlord agrees to use best efforts to obtain
possession of the Additional Premises as soon as possible, including the
commencement by Landlord of summary dispossess, holdover or other applicable
proceedings against such tenants or other occupants. In the event that Landlord
is unable to deliver possession of the Additional Premises to Tenant within
nine (9) months after the Effective Date due to such holding over, Tenant, as
its sole remedy, may elect to terminate this Agreement by notice to Landlord
within 15 days thereafter, and Landlord shall in no event be liable to Tenant
for damages for its failure to obtain such possession.

ARTICLE 4

TENANT’S ADDITIONAL
PREMISES WORK

Section 4.1. (a)   Any alterations to be performed
by Tenant in the Additional Premises to prepare same for Tenant’s initial
occupancy thereof (“Tenant’s Additional Premises Work”) shall be performed in accordance
with Article 8 of the Lease (other than Section 8.8 thereof) and the applicable
provisions of Article 19 hereof. To the extent that any such costs and expenses
are not covered by the Additional Premises Work Credit provided by Landlord to
Tenant, as subsequently described herein, Tenant shall reimburse Landlord
within thirty (30) days after Landlord’s demand for any actual out-of-pocket
costs and reasonable expenses incurred by Landlord in connection with Landlord’s
review of Tenant’s plans and specifications for Tenant’s Additional Premises
Work (collectively, “Landlord’s

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Review Costs”); provided, however, that Tenant
shall not be required to pay to Landlord any supervisory fees or surcharges in
connection with obtaining Landlord’s approval of Tenant’s Additional Premises
Work (nor shall Tenant be obligated to pay any such supervisory fees or
surcharges in connection with obtaining Landlord’s approval of any subsequent
alterations to be performed by Tenant in the demised premises).

(b)       The Approved List set forth on Exhibit B
of the Lease is hereby replaced with the list attached hereto as Exhibit B.
Subject to the foregoing, the provisions of Section 3.2(b) of the Lease
(including the requirement that Tenant engage Plaza Construction Corp. as its
general contractor) will apply in connection with the performance of Tenant’s
Additional Premises Work.

(c)       Landlord shall allow Tenant
a credit in the amount of up to THREE HUNDRED EIGHTY-THREE THOUSAND SEVEN
HUNDRED SIXTY AND 00/100 ($383,760.00) DOLLARS (the “Additional Premises Work Credit”;which amount includes $21,300.00
calculated as $20.00 per usable square foot for 1,065 square feet of common
corridor), which credit shall be applied solely against the cost and expense
incurred by Tenant for (i) the actual construction performed in connection with
Tenant’s Additional Premises Work, (ii) moving, architectural, consulting,
engineering, legal fees and other similar fees in connection with Tenant’s
Additional Premises Work performed after the date hereof in accordance with the
terms and provisions of the Lease, including Article 8 of the Lease (other than
Section 8.8 thereof) and (iii) Landlord’s Review Costs, and for no other
purposes. In the event that the cost and expense of Tenant’s Additional
Premises Work shall exceed the amount of the Additional Premises Work Credit,
Tenant shall be entirely responsible for such excess. Any portion of the
Additional Premises Work Credit not applied by Tenant to the costs set forth in
the first sentence

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of this Section 4.1(c) shall be applied as a credit against the next
installments of fixed annual rent coming due under the Lease following Tenant’s
written notice therefor, which notice shall specify the installments of fixed
annual rent to which such credit will be applied.

(d)       Landlord shall allow Tenant
a credit in the amount of up to FORTY THOUSAND AND 00/100 ($40,000.00) DOLLARS
(the “Bathroom
Work Credits”), which
credit shall be applied solely against the cost and expense incurred by Tenant
for the actual construction performed to refurbish the bathrooms on the 28th
Floor and to make them compliant with the Americans with Disabilities Act (the “Bathroom Work”) and for no other purposes. In the
event that the cost and expense of the Bathroom Work shall exceed the amount of
the Bathroom Work Credit, Tenant shall be entirely responsible for such excess.
Any portion of the Bathroom Work Credit not applied by Tenant to the costs of
the Bathroom Work shall be applied as a credit against the next installments of
fixed annual rent coming due under the Lease following Tenant’s written notice
therefore, which notice shall specify the installments of fixed annual rent to
which such credit will be applied.

(e)       Landlord shall pay to
Tenant installments of the Additional Premises Work Credit and Bathroom Work
Credit within thirty (30) days after Landlord’s receipt of a written request
for disbursement. The Additional Premises Work Credit and the Bathroom Work
Credit shall be payable to Tenant, or, at Tenant’s request, to its contractors,
vendors, architect, engineer, movers, or other consultants, in installments as
Tenant’s Additional Premises Work and the Bathroom Work progresses, but in no
event more frequently than monthly.

(f)        At any and all times
during the progress of Tenant’s Additional Premises Work and the Bathroom Work,
representatives of Landlord shall have the right of access to the

 6
 

demised premises and inspection thereof; provided, however, that
Landlord shall incur no liability, obligation or responsibility to Tenant or
any third party by reason of such access and inspection (except, subject to the
provisions of Section 12.6 of the Lease and the waiver of claims and waiver of
subrogation set forth therein, to the extent of any damage caused by Landlord’s
negligence or willful misconduct).

(g)       The Additional Premises
Work Credit and the Bathroom Work Credit are being given for the benefit of
Tenant or Guarantor, and/or their affiliates Consoer Townsend Envirodyne
Engineers of New York, Inc., and Metcalf & Eddy of New York, Inc. (which
the parties acknowledge will be occupying portions of the demised premises) and
their respective parent companies, only. No third party shall be permitted to
make any claims against Landlord or Tenant with respect to any portion of the
Additional Premises Work Credit or the Bathroom Work Credit.

(h)       In the event that Landlord
fails to pay any portion of the Additional Premises Work Credit or the Bathroom
Work Credit within thirty (30) days after the submission of Tenant’s request
therefor in accordance with the foregoing provisions of this Section 4.1
(hereinafter called the “Unpaid Amount”), and such failure shall continue for ten (10) business days
after Landlord’s receipt of written notice thereof from Tenant specifically
referring to Tenant’s set-off right contained in this Section 4.1(g) (such
tenth (10th) business day being herein called the “Dispute Deadline Date”), then, unless under the terms of
this Section 4.1, such Unpaid Amount (or portion thereof) was not required to
be paid by Landlord for the reasons specifically set forth in this Agreement,
Tenant shall be entitled to set off the Unpaid Amount (or portion thereof),
plus interest at the Prime Rate (which shall accrue from the date such amount
was due and payable until the date of such set-off) against the fixed annual
rent thereafter

 7
 

coming due under the Lease; provided, however, that, if on or before
the Dispute Deadline Date with respect to such Unpaid Amount (or portion
thereof) Landlord, acting in good faith, shall have given Tenant a “Dispute
Notice” (as such term is hereinafter defined) with respect to such Unpaid
Amount (or portion thereof), then Tenant shall not have the right to make such
set-off except to the extent that the dispute shall have been resolved in
Tenant’s favor by arbitration pursuant to Section 4.1(i) hereof. For purposes
hereof, the term “Dispute Notice” shall mean a written notice from
Landlord to Tenant setting forth that Landlord disputes Tenant’s right to
receive all or a portion of any installment of the Additional Premises Work
Credit or the Bathroom Work Credit and specifying in reasonable detail Landlord’s
reasons therefor.

(i)        If either Landlord or
Tenant shall dispute Tenant’s right to receive all or any portion of the
Additional Premises Work Credit or the Bathroom Work Credit, such dispute may
be submitted by either party to arbitration for expedited proceedings under the
Expedited Procedures provisions (currently, Rules 56 through 60) of the
Arbitration Rules of the Real Estate Industry of the American Arbitration
Association (the “AAA”). In
any case where the parties utilize such expedited arbitration: (a) the parties
will have no right to object if the arbitrator so appointed was on the list
submitted by the AAA and was not objected to in accordance with Rule 54 (except
that any objection shall be made within four (4) days from the date of
mailing), (b) the Notice of Hearing shall be given four (4) days in advance of
the hearing, (c) the first hearing shall be held within five (5) business days
after the appointment of the arbitrator, and (d) the losing party in such
arbitration shall pay the costs of such arbitration costs charged by the AAA
and/or the arbitrator, together with the reasonable legal fees and
disbursements incurred by the prevailing party in connection with such
arbitration. Judgment upon any award rendered in any arbitration held pursuant
to this Section 4.1 (i) may be entered in

 8
 

any court having jurisdiction, and in connection therewith, the
arbitrators shall be bound by the provisions of the Lease, and shall not add
to, subtract from or otherwise modify such provisions, and the sole remedy
which may be awarded by the arbitrators in any proceeding pursuant to this
Section 4.1 (i) is an order compelling Landlord to pay any portion of the
Additional Premises Work Credit or the Bathroom Work Credit, plus interest at
the Prime Rate, which Landlord was withholding pursuant to the foregoing
provisions of this Section, and, except for the costs and fees described in
this clause, the arbitrators may not award damages or grant any monetary award
or other form of relief.

ARTICLE 5

FIXED ANNUAL RENT FOR THE
ADDITIONAL PREMISES

Section 5.1. Effective as of the Additional Premises
Adjustment Date, the fixed annual rent payable by Tenant pursuant to Section
1.1 of the Lease shall be increased on account of the Additional Premises as
follows:

(i)        by the sum of FOUR HUNDRED
SEVENTY-SIX THOUSAND THREE HUNDRED SEVENTY-SIX AND 00/100 ($476,376.00) DOLLARS
per annum for the period commencing on the Additional Premises Adjustment Date
and ending on May 31, 2011.

(ii)       by the sum of FIVE HUNDRED
SEVENTEEN THOUSAND EIGHT HUNDRED AND 00/100 ($517,800.00) DOLLARS per annum for
the period commencing on June 1, 2011 and ending on May 31, 2016, and

(iii)      by the sum of FIVE HUNDRED
FIFTY-NINE THOUSAND TWO HUNDRED TWENTY-FOUR AND 00/100 ($559,224.00) DOLLARS
per annum for the period commencing on June 1, 2016 and ending on the
Expiration Date.

 9
 

Section 5.2. Notwithstanding anything to the contrary
contained in Section 7.1 hereof, if the Additional Premises Adjustment Date is
delayed beyond December 1, 2005 the provisions of Section 5.1 shall be deemed
to be modified to replace the dates May 31, 2011 and May 31, 2016 set forth
therein with the dates occurring on the last day of the month in which occurs
the day preceding the fifth (5th) anniversary and the (10th) anniversary,
respectively, of the Additional Premises Rent Commencement Date, and to replace
the dates June 1, 2011 and June 1, 2016 set forth therein with the
dates occurring on the first day of the month following the month in which
occurs the day preceding the fifth (5th) anniversary and the (10th)
anniversary, respectively, of the Additional Premises Rent Commencement Date.

Section 5.3. Notwithstanding anything to the contrary
contained in this Article 7, the adjustment of fixed annual rent for the
Additional Premises as set forth in Section 7.1 above and the “escalation rent”
due under Articles 4 and 5 of the Lease for the Additional Premises shall be
abated during the six (6) month period commencing on the Additional Premises
Adjustment Date, and Tenant shall be entitled to an additional abatement of
fixed annual rent for the Additional Premises equal to SEVENTY-FIVE THOUSAND
and 00/100 DOLLARS ($75,000.00) credited against the first fixed annual rent
coming due under this Agreement. The date immediately following the expiration
of the aforesaid six (6) month period is referred to herein as the “Additional Premises Rent Commencement Date”.

ARTICLE 6

TAX ESCALATIONS

Section 6.1. Section 4.1(a)(i) of the Lease shall be
modified and amended, (a) effective as of the Additional Premises Adjustment
Date, as such Section relates to the Additional Premises, only, to read as
follows:

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“The term “base tax year”
as hereinafter set forth for the determination of real estate tax escalation
shall mean the New York City real estate tax year commencing July 1, 2005 and
ending June 30, 2006.”

Section 6.2. Effective as of the Additional Premises
Adjustment Date, Section 4.1(a)(ii) of the Lease, as it relates to the
Additional Premises only, shall be modified and amended to read as follows:

“The term “The Percentage”,
for purposes of computing tax escalation, shall mean one and eight
one-hundredths of a percent (1.08%).”

ARTICLE 7

EXPENSE ESCALATIONS

Section 7.1. Section 5.1(a)(i) of the Lease shall be
modified and amended, effective as of the Additional Premises Adjustment Date,
as such Section relates to the Additional Premises only, to read as follows:

“The term “Expense Base Factor”
shall mean the amount of the Expenses for Landlord’s fiscal year commencing May
1, 2005 and ending April 30, 2006.”

Section 7.2. Effective as of the Additional Premises
Adjustment Date, Section 5.1(a)(iv) of the Lease, as it relates to the
Additional Premises only, shall be modified and amended to read as follows:

“The term “The Percentage”,
for purposes of computing expense escalation, shall mean one and eight
one-hundredths of a percent (1.08%).”

Section 7.3. Effective as of the Additional Premises
Adjustment Date, Section 5.1(a)(v) and Section 5.1(b) of the Lease, as they
relate to the Additional Premises only,

 11
 

shall be modified and amended such that the year “2000” set forth
therein shall be deemed to read “2006.”

ARTICLE 8

ADDITIONAL PREMISES ELECTRICITY

Section 8.1. Landlord shall provide electric energy to
the Additional Premises and Tenant shall pay for same in the same manner as set
forth in Article 7 of the Lease with respect to the Existing Premises,
including without limitation the provisions of Section 7.5(a) of the Lease
relating to the electrical capacity of the demised premises (i.e., six (6)
watts (volt-amperes) of demand electrical load per useable square foot,
excluding the Building HVAC systems).

ARTICLE 9

PREPARATION OF THE ADDITIONAL PREMISES

Section 9.1. Subject to Section 9.2 below, Tenant
agrees that it shall accept the Additional Premises in the condition in which
they exist on the date hereof, ordinary wear and tear excepted, and that,
except as specifically set forth in Section 9.2, no work is to be performed or
materials supplied by Landlord to prepare the Additional Premises for Tenant’s
occupancy or to prepare the Existing Premises for Tenant’s continued occupancy.

Section 9.2. Landlord agrees that Landlord, at its
sole cost and expense, shall (i) on the Additional Premises Adjustment Date
deliver the Additional Premises in vacant, demolished and broom clean
condition, (ii) before or promptly following the Additional Premises Adjustment
Date, supply Tenant with an ACP-5 certificate with respect to the Additional
Premises, (iii) on or before the date that Tenant is prepared to connect the
Additional

 12
 

Premises to the Building Class “E” system, provide a reasonable number
of access points at a Class “E” (ALM) panel for such connection, (iv) on or
before the Additional Premises Adjustment Date provide sprinkler capability to
the Additional Premises (it being Tenant’s responsibility to perform sprinkler
installation in the Additional Premises, and (v) on or before the Additional
Premises Adjustment Date, install a sufficient number of Check Meters in the
Additional Premises for the purposes described in Section 7.2(a) of the Lease.
If Landlord fails to complete items (i) through (v) of the preceding sentence
on or before the Additional Premises Adjustment Date, save for Force Majeure
Causes, the six (6) month period in Section 5.3 above shall be increased by one
day for each day until completion. If Landlord fails to complete items (i)
through (v) above within four months after the later of the Additional Premises
Adjustment Date or the date Landlord obtains actual, legal possession of the
entire Additional Premises from any holdover tenants or occupants, Tenant, as
its sole remedy, may elect to terminate this Agreement by notice to Landlord
within 15 days thereafter, and, unless Landlord shall have completed such items
within said period of time, this Agreement shall be cancelled, null and void,
and Landlord shall in no event be liable to Tenant for damages for its failure
to complete such items. Tenant agrees that Tenant, at its sole cost and
expense, shall have the Building’s Class “E” system contractor connect Tenant’s
life safety and Class “E” hook-ups to the base building system. Tenant shall be
solely responsible for compliance with Class “E” requirements within the
Additional Premises.

Section 9.3. Landlord represents that, as of the
Effective Date, local subpanels exist for connection of and power to all fire
detection and annunciation devices in the Additional Premises, including
speaker/strobes, smoke detectors, pull stations and duct detectors, and that
all of the above are in good working order as of the Effective Date.

 13
 

ARTICLE 10

 

BROKERAGE

Section 10.1. Tenant represents and warrants that it
neither consulted nor negotiated with any broker or finder with regard to the
Additional Premises, the extension of the Lease or this Agreement other than
Cushman & Wakefield, Inc. (“Broker”).
Tenant agrees to indemnify, defend and save Landlord harmless from and against
any claims for fees or commissions by any one other than Broker with whom
Tenant has dealt in connection with the Additional Premises or this Agreement.
Landlord represents and warrants that it neither consulted nor negotiated with
any broker or finder with regard to the Additional Premises or this Agreement
other than Broker. Landlord agrees to indemnify, defend and save Tenant
harmless from and against any claims for fees or commissions by any one other
than Broker with whom Landlord has dealt in connection with the Additional
Premises, the extension of the Lease or this Agreement. Landlord shall pay
Broker a commission pursuant to a separate agreement.

ARTICLE 11

NON-DISTURBANCE AGREEMENT

Section 11.1. Section 11.5 of the Lease is hereby
deleted in its entirety. Landlord shall obtain for the benefit of Tenant an
amendment, in form and substance reasonably satisfactory to Tenant, to the
currently existing subordination, non-disturbance and attornment agreement
between Tenant and UBS Warburg Real Estate Investments Inc. dated September 4,
2002, which amendment will incorporate this Agreement into said subordination,
non-disturbance and attornment agreement. In addition, Landlord shall use
commercially reasonable efforts to obtain for the benefit of Tenant a
commercially reasonable subordination, non-disturbance and attornment agreement
from any future mortgagee or holders of other superior

 14
 

interests affecting the Land and/or the Building, with such reasonable
changes as Tenant may request.

ARTICLE 12

SERVICES

Section 12.1. Landlord shall furnish air conditioning,
ventilation and heating to the Additional Premises in accordance with Section
32.2 and Exhibit I of the Lease.

Section 12.2. (a) Landlord shall provide Tenant with,
and Tenant agrees to purchase from Landlord, up to ten (10) tons of condenser
water for the supplemental air conditioning needs of Tenant in the Additional
Premises, at the rate of $800 per ton per annum (which charge for condenser
water shall be increased annually based upon the percentage increases in
Expenses over and above the Expenses for the immediately preceding calendar
year). No later than December 1, 2005 Tenant shall notify Landlord in writing
of the amount of tons of condenser water, up to ten (10) tons, Tenant desires
to reserve for the Additional Premises for the balance of the term of the
Lease. Should Tenant fail to timely deliver the applicable notice set forth in
the immediately preceding sentence, then Tenant shall be deemed to have
reserved ten (10) tons of condenser water for the balance of the term of the
Lease. Notwithstanding the foregoing, Tenant shall have the right at any time
during the term of the Lease, upon written notice to Landlord, to reduce the
amount of condenser water it has reserved hereunder for the Additional
Premises; provided, that should Tenant require additional condenser water after
any such reduction, Landlord shall only be required to fulfill such needs on an
“as available” basis. Tenant shall commence payment for the condenser water for
the Additional Premises from and after the Additional Premises Adjustment Date.

 15

(b)       Tenant shall not be
responsible for the cost and expense of “tap-in” charges for the installation
of a new or existing riser-connected water valve required in order to operate a
supplemental air conditioning system in the Additional Premises, provided Tenant
shall be responsible for the cost and expense of the connection to such valve,
whether new or existing, of such supplemental air conditioning system.

Section 12.3. Landlord shall provide cleaning services
to the Additional Premises in accordance with Section 32.8 and Exhibit J of the
Lease.

Section 12.4. Landlord will, at the request of Tenant,
maintain listings on the Building directory of the names of Tenant, its
subsidiaries and officers occupying space in the Additional Premises in
accordance with Section 32.11 of the Lease. The initial installation of
additional directory listings for the Additional Premises shall be at Landlord’s
sole cost and expense.

Section 12.5. Notwithstanding anything to the contrary
contained in Article 32 of the Lease, provided that Tenant retains Plaza
Construction Corporation to perform Tenant’s Additional Premises Work, Tenant
shall have the use, after reasonable prior notice to Landlord, of the freight
elevators, loading docks and required security at times other than during
business hours, seven (7) days per week, at no cost to Tenant, in connection
with the performance of Tenant’s Additional Premises Work and during Tenant’s
initial move into the Additional Premises. Notwithstanding the foregoing, but
subject to the other provisions of this Section 17.5, (a) in no event shall
such free usage exceed twelve (12) consecutive hours of usage on business days
(eight (8) of such twelve (12) hours occurring between the hours of 8:00 a.m.
and 6:00 p.m.) or eight (8) consecutive hours on a Saturday, and (b) Tenant
shall be entitled to

 16
 

such free usage in order to meet Tenant’s reasonable needs for usage of
the freight elevators, loading docks and required security on Sundays in
connection with Tenant’s Additional Premises Work, and Tenant shall be entitled
to unlimited free usage of the freight elevators, loading docks and required
security on Sundays in connection with Tenant’s initial move into the
Additional Premises. Such elevators, loading docks and security shall be
available for Tenant’s use on a priority (but not exclusive) basis taking into
account the reasonable needs of Landlord and other tenants and occupants of the
Building on a day-to-day basis. Tenant or Tenant’s contractor shall coordinate
Tenant’s use of such elevators, loading docks and security with Landlord and
any other tenant or occupant or other tenant’s or occupant’s contractors then
using, or intending to use, same.

ARTICLE 13

SPRINKLER WORK

Section 13.1. Landlord and Tenant hereby acknowledge
that Local Law 26 of 2004 (“Local Law 26”), which is currently in
effect, requires the installation of sprinklers throughout the Building by not
later than July 1, 2019. Notwithstanding the foregoing, Landlord and Tenant
hereby agree that Tenant shall cause the Additional Premises to comply with
Local Law 26 by not later than June 30, 2015 (failing which Landlord will be
entitled to perform the work necessary to cause such compliance and assess the
cost thereof to Tenant as provided in the Lease, including without limitation
in Section 21.1 thereof). The provisions of this Article 13 shall not be deemed
to modify or limit any obligations of Tenant pursuant to Articles 8 and 10 of
the Lease or any other applicable provisions of the Lease.

 17
 

ARTICLE 14

MISCELLANEOUS

Section 14.1. Article 20 of the First Supplement shall
apply to the Additional Premises, and the Termination Payment with respect to
the Additional Premises shall be THREE HUNDRED EIGHTEEN THOUSAND SEVEN HUNDRED
FIFTY-THREE and 00/100 DOLLARS ($318,753.00).

Section 14.2. Notwithstanding anything in this
Agreement to the contrary, during the period (the “Contract
Period”) commencing
on the Effective Date and ending upon the day preceding the earlier to occur of
(x) the Additional Premises Rent Commencement Date and (y) the date Tenant
takes occupancy of the Additional Premises for the conduct of Tenant’s
business, this Agreement shall be deemed a contract between the parties hereto
and not a lease. During the Contract Period the parties shall comply with the
provisions of this Agreement and the Lease as it applies to the Additional
Premises. Following the Contract Period, this Agreement shall be deemed a part
of the Lease. Any breach of this Agreement by Tenant during the Contract Period
shall be deemed a default under Section 19.1 of the Lease.

Section 14.3. Except as modified, amended and
supplemented by this Agreement, the terms and provisions of the Lease
(including without limitation Section 46.2 thereof) shall continue in full
force and effect in accordance with their terms and are hereby ratified and
confirmed.

Section 14.4. This Agreement shall not be binding upon
Landlord and Tenant unless and until this Agreement is signed by both parties
hereto and a signed copy thereof is delivered by Landlord to Tenant.

 18
 

Section 14.5. This Agreement constitutes the entire
agreement among the parties hereto with respect to the matters stated herein
and may not be amended or modified unless such amendment or modification shall
be in writing and signed by the party against whom enforcement is sought.

Section 14.6. The terms, covenants and conditions
contained in this Agreement shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns.

Section 14.7. This Agreement shall be governed in all
respects by the laws of the State of New York.

Section 14.8. This Agreement may be executed in one or
more counterparts each of which, when taken together, shall constitute one and
the same instrument.

[The balance of this page
is intentionally left blank.]

 19
 

IN WITNESS WHEREOF, the parties hereto have executed
this Agreement as of the day and year first above written.

 

	
  

  	
   

  	
   

  	
  605 THIRD AVENUE FEE LLC, Landlord

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Richard L. Fisher

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Richard L. Fisher 

  
	
   

  	
   

  	
   

  	
   

  	
  Co-President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ David L. Fey

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  David L. Fey 

  
	
   

  	
   

  	
   

  	
   

  	
  Co-President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  DMJM+HARRIS, INC., Tenant

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Frederick Werner

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Frederick Werner

  
	
   

  	
   

  	
   

  	
   

  	
  Title: CEO

  

 

 

The undersigned hereby reaffirms that certain Guaranty of Lease, dated
as of March 17, 1999, made by the undersigned in favor of Landlord, and
acknowledges that the references therein to the Lease shall be deemed to be
references to the Lease as amended by the First Supplement and as amended
hereby.

	
  

  	
   

  	
   

  	
  AECOM TECHNOLOGY CORPORATION, Guarantor

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Paul Schwartz

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Paul Schwartz

  
	
   

  	
   

  	
   

  	
   

  	
  Title: VP

  

 

 20
 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

 

On the 4th day of November in the year 2005 before me,
the undersigned, personally appeared Frederick Werner personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his capacity and that by his signature on the instrument,
the individual or the person upon behalf of which the individual acted,
executed the instrument.

 

	
  

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
   

  	
   

  
	
  My commission
  expires:

  	
   

  	
   

  
	
  [Seal]

  	
  ROBERT K. ORLIN
Notary Public, State of New York

  No. 020R5087994

  Qualified in Suffolk County

  Commission Expires November 10, 2009

  

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

 

On the 12th day of November
in the year 2005 before me, the undersigned, personally appeared Paul E.
Schwartz personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity and that by
his signature on the instrument, the individual or the person upon behalf of
which the individual acted, executed the instrument.

	
  

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
   

  	
   

  
	
  My commission
  expires:

  	
   

  	
   

  
	
  [Seal]

  	
  ROBERT K. ORLIN

  Notary Public, State of New York
No. 020R5087994 

  Qualified in Suffolk County 

  Commission Expires November 10, 2009

  

 

 21
 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

 

On the 15th day of November in the year 2005 before me,
the undersigned, personally appeared Richard L. Fisher personally known to me
or proved to me on the basis of satisfactory evidence to be the individual
whose name is subscribed to the within instrument and acknowledged to me that
he executed the same in his capacity and that by his signature on the
instrument, the individual or the person upon behalf of which the individual
acted, executed the instrument.

 

	
  

  	
  /s/ Nancy J. deBrito

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
   

  	
   

  
	
  My commission
  expires:

  [Seal]

  	
  Nancy J. DeBrito

  Notary Public, State of New York

  No. [ILLEGIBLE]

  Qualified in New York County

  Commission Expires March 4, 2000

  

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

 

On the 15th day of November in the year 2005 before me,
the undersigned, personally appeared David L. Fey personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity and that by his signature on the instrument, the
individual or the person upon behalf of which the individual acted, executed
the instrument.

 

	
  

  	
  /s/ JULIETTE S. ALLY

  	
   

  
	
   

  	
  Notary Public

  	
   

  
	
   

  	
   

  	
   

  
	
  My commission
  expires:

  [Seal]

  	
  JULIETTE S. ALLY

  Notary Public, State of New York

  No. 01AL6059789

  Qualified in New York County

  Commission Expires June 4, 2007

  

 

 22

EXHIBIT A

 

Additional Premises

 

[annexed hereto]

[GRAPHIC]

EXHIBIT B

 

Approved List

 

[annexed hereto]

 

	
  APPROVED BUILDING CONTRACTORS

  	
   

  	
  Revised

  
	
  FOR THE USE OF FISHER BROTHERS’ TENANTS

  	
   

  	
  8/4/05

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONTRACTOR

  	
   

  	
  CONTACT

  	
   

  	
  TELEPHONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GENERAL CONTRACTORS

  	
   

  	
   

  	
   

  	
   

  
	
  American
  Construction, Inc.

  	
   

  	
  Richard
  Cucci/Thomas Prince

  	
   

  	
  212-274-0180

  
	
  James E.
  Fitzgerald

  	
   

  	
  Hugh O’Connell

  	
   

  	
  212-921-8700

  
	
  Plaza
  Construction Corporation

  	
   

  	
  Richard Wood

  	
   

  	
  212-849-4800

  
	
  Quadrant
  Construction

  	
   

  	
  Bob Jacobsen

  	
   

  	
  212-697-4007

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVAC

  	
   

  	
   

  	
   

  	
   

  
	
  B.P. Air
  Conditioning Corp.

  	
   

  	
  Robert Barbera

  	
   

  	
  718-383-2100

  
	
  Arista Air
  Conditioning

  	
   

  	
  Kenneth N. Mayo

  	
   

  	
  718-729-7111

  
	
  Donnelly
  Mechanical Corporation

  	
   

  	
  Daniel T.
  Donnelly

  	
   

  	
  718-886-1500

  
	
  Harbour
  Mechanical

  	
   

  	
  Joe Bryceland

  	
   

  	
  212-924-1010

  
	
  J.D.P.
  Mechanical Corp.

  	
   

  	
  Peter Manos, Jr.

  	
   

  	
  718-267-6767

  
	
  P.J. Mechanical

  	
   

  	
  Peter or Chris
  Pappas

  	
   

  	
  212-243-2555

  
	
  Penguin Air
  Conditioning Corp.

  	
   

  	
  Dan Dubin

  	
   

  	
  718-706-6500

  
	
  Sound
  Refrigeration & Air Conditioning, Inc.

  	
   

  	
  Robert Gulmi

  	
   

  	
  516-747-5878

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AIR & WATER BALANCING

  	
   

  	
   

  	
   

  	
   

  
	
  Merendino
  Associates Inc.

  	
   

  	
  Michael Merendino

  	
   

  	
  718-599-1300

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL “A”

  	
   

  	
   

  	
   

  	
   

  
	
  (All Base Building Switches & Risers)

  	
   

  	
   

  	
   

  	
   

  
	
  ADCO - Electric

  	
   

  	
  Edward Welsh

  	
   

  	
  718-494-4400

  
	
  Arc Electrical
  Construction Co., Inc.

  	
   

  	
  Vincent Lolacono

  	
   

  	
  212-573-9600

  
	
  Consolidated
  Electric Company, Inc.

  	
   

  	
  Ken Michael

  	
   

  	
  212-661-9555

  
	
  Forest Electric
  Corp.

  	
   

  	
  Phil Altheim /
  Paul Rizzo

  	
   

  	
  212-318-1500

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL “B”

  	
   

  	
   

  	
   

  	
   

  
	
  (Tenant Work)

  	
   

  	
   

  	
   

  	
   

  
	
  ADCO - Electric

  	
   

  	
  Edward Welsh

  	
   

  	
  718-494-4400

  
	
  Arc Electrical
  Construction Co., Inc.

  	
   

  	
  Vincent Lolacono

  	
   

  	
  212-573-9600

  
	
  Campbell &
  Dawes Ltd.

  	
   

  	
  Gary Dawes

  	
   

  	
  718-441-6300

  
	
  E-J Electric
  Installation Co.

  	
   

  	
  J. Robert Mann,
  Jr.

  	
   

  	
  718-786-9400

  
	
  Forest Electric
  Corp.

  	
   

  	
  Phil Altheim /
  Paul Rizzo

  	
   

  	
  212-318-1500

  
	
  Kleinknecht
  Electric Co., Inc.

  	
   

  	
  Mike Malherb

  	
   

  	
  212-728-1800

  
	
  Nead Electric

  	
   

  	
  Robert Mishlen

  	
   

  	
  201-460-5200

  
	
  Petrocelli
  Electric Co., Inc.

  	
   

  	
  Santo
  Petrocelli, Jr.

  	
   

  	
  718-937-1200

  
	
  Robert B.
  Samuels, Inc.

  	
   

  	
  David l. Samuels

  	
   

  	
  212-645-5150

  
	
  * Star Delta

  	
   

  	
  Bob Katz

  	
   

  	
  212-203-8100

  
	
  Zwicker Electric
  Co., Inc.

  	
   

  	
  Robert Lepore /
  Neil DeVincenzo

  	
   

  	
  212-477-8400

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FIRE ALARM / CLASS “E” INSTALLATIONS

  	
   

  	
   

  	
   

  	
   

  
	
  Fire Service
  Inc.

  	
   

  	
  Jeff Coven

  	
   

  	
  718-899-6100

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAINTING

  	
   

  	
   

  	
   

  	
   

  
	
  Albert Pearlman
  Inc.

  	
   

  	
  Joseph Vitiello

  	
   

  	
  212-687-5055

  
	
  Antovel Gelberg
  Painting Inc.

  	
   

  	
  Suresh Babari /
  Grant Albert

  	
   

  	
  718-937-3520

  
	
  Bond Painting
  Co. Inc.

  	
   

  	
  Kenny Sprecher /
  Stuart Feld

  	
   

  	
  212-944-0070

  
	
  Cosmopolitan
  Decorating

  	
   

  	
  Dave Ansbacher

  	
   

  	
  212-586-6438

  
	
  L & L
  Painting

  	
   

  	
  Brad Zorfas

  	
   

  	
  516-349-1900

  
	
  Morestar
  Painting

  	
   

  	
  Roy Katzman

  	
   

  	
  212-982-4255

  
	
  Newport Painting
  & Decorating Co., Inc.

  	
   

  	
  Ralph Lanza

  	
   

  	
  212-465-9080

  
	
  Prestige
  Painting Inc.

  	
   

  	
  Mendel Klein

  	
   

  	
  212-943-6777

  
	
  Spectrum
  Painting Contractors

  	
   

  	
  Rino Montefore

  	
   

  	
  718-892-0700

  
	
  Werner Krebs,
  Inc.

  	
   

  	
  Joseph Tamweber

  	
   

  	
  914-376-8900

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PLUMBING

  	
   

  	
   

  	
   

  	
   

  
	
  Ashland Plumbing
  and Heating Corp.

  	
   

  	
  Herb Arnold

  	
   

  	
  212-989-1320

  
	
  George Breslaw
  & Sons, Inc.

  	
   

  	
  Michael Breslaw

  	
   

  	
  212-265-4023

  
	
  Pace Plumbing
  Corporation

  	
   

  	
  Andru Coren

  	
   

  	
  718-389-6100

  
	
  Par Plumbing Co.
  Inc.

  	
   

  	
  Marty Levine /
  Larry Levine

  	
   

  	
  516-887-4000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECURITY INSTALLATIONS

  	
   

  	
   

  	
   

  	
   

  
	
  Technical Edge
  Security Systems, Inc.

  	
   

  	
  Joe Gee

  	
   

  	
  718-224-9348

  

 

 

	
  CONTRACTOR

  	
   

  	
  CONTACT

  	
   

  	
  TELEPHONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPRINKLER

  	
   

  	
   

  	
   

  	
   

  
	
  Abco - Peerless
  Corp. Inc.

  	
   

  	
  Peter Bowe

  	
   

  	
  516-294-6850

  
	
  Active Fire
  Sprinkler Corp.

  	
   

  	
  Morty Hirach /
  Diana Blanda / Michael Nelson

  	
   

  	
  718-834-8300

  
	
  Belrose Fire
  Suppression Inc.

  	
   

  	
  Mike Hartigan

  	
   

  	
  516-378-9590

  
	
  Rael Automatic
  Sprinkler Co. Inc.

  	
   

  	
  David Israel /
  Norman Israel

  	
   

  	
  516-593-2000

  
	
  Slrina Fire
  Protection Corp.

  	
   

  	
  Rocco Abbate

  	
   

  	
  516-942-0400

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STRUCTURAL STEEL & MISC. IRON

  	
   

  	
   

  	
   

  	
   

  
	
  Burgess Steel
  Products Corp.

  	
   

  	
  Matthew Guerin

  	
   

  	
  201-871-3500

  
	
  Hallen Steel
  Corp.

  	
   

  	
  Stephen
  DeGregory

  	
   

  	
  718-784-1730

  
	
  Kraman
  Ironworks, Inc.

  	
   

  	
  James Fassler

  	
   

  	
  212-480-8400

  
	
  Northeastern
  Fabricators Inc.

  	
   

  	
  Anthony DiDonato

  	
   

  	
  718-542-0450

  
	
  Piermont Iron
  Works

  	
   

  	
  David Finucane

  	
   

  	
  973-837-1750

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HARDWARE

  	
   

  	
   

  	
   

  	
   

  
	
  AAA Hardware

  	
   

  	
  William Brown

  	
   

  	
  212-840-3939

  
	
  Acme
  Architectural Products

  	
   

  	
  Joseph Licari

  	
   

  	
  718-384-7800

  
	
  DCI Metro
  (formerly Vision Hardware)

  	
   

  	
  William Mihatov

  	
   

  	
  973-424-0186

  
	
  Weinstein &
  Holtzman

  	
   

  	
  Ira Hymowitz

  	
   

  	
  212-233-4651

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEMOLITION

  	
   

  	
   

  	
   

  	
   

  
	
  Castle Demolition
  Corp.

  	
   

  	
  Carlo Casalino

  	
   

  	
  718-424-0300

  
	
  Liberty
  Contracting Corp.

  	
   

  	
  Frank Call

  	
   

  	
  201-868-7500

  
	
  Patriot
  Contracting Corp.

  	
   

  	
  Charles Becker

  	
   

  	
  201-413-9800

  
	
  Phoenix
  Interiors, Inc.

  	
   

  	
  William
  Palmedessa

  	
   

  	
  201-402-9200

  
	
  Riteway Internal
  Removal

  	
   

  	
  Leroy Barrocca

  	
   

  	
  718-458-8900

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDUSTRIAL HYGIENISTS

  	
   

  	
   

  	
   

  	
   

  
	
  Ambient Group
  Inc.

  	
   

  	
  John Leitner

  	
   

  	
  212-944-4615

  
	
  G.C.I.
  Environmental

  	
   

  	
  James Grand

  	
   

  	
  212-986-9460

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABATEMENT CONTRACTORS

  	
   

  	
   

  	
   

  	
   

  
	
  P.A.L.
  Environmental Safety Corp.

  	
   

  	
  Salvatore
  DiLorenzo

  	
   

  	
  718-349-0900

  
	
  Safeway
  Environmental Corp.

  	
   

  	
  Donald Adler

  	
   

  	
  718-746-4300

  
	
  Seasons
  Contracting Corp.

  	
   

  	
  Dan Margiotta

  	
   

  	
  201-804-8787

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RECOMMENDED CONSULTING ENGINEERS

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical/Mechanical

  	
   

  	
   

  	
   

  	
   

  
	
  Cosentini
  Associates

  	
   

  	
  Mechanical: Ed
  Barbieri

  	
   

  	
  212-615-3600

  
	
   

  	
   

  	
  Electrical: Charles
  Buscarino

  	
   

  	
  212-615-3600

  
	
  Structural

  	
   

  	
   

  	
   

  	
   

  
	
  Office of James
  Ruderman

  	
   

  	
  Howard Zwieg

  	
   

  	
  212-643-1414

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fireproofing & Concrete Inspections

  	
   

  	
   

  	
   

  	
   

  
	
  Teswell
  Laboratories Inc.

  	
   

  	
  Paul Morettl

  	
   

  	
  914-762-9000

  
	
  John H. Brooks
  & Associates

  	
   

  	
  John H. Brooks,
  Jr.

  	
   

  	
  732-495-3142

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Welding Inspection - Engineer

  	
   

  	
   

  	
   

  	
   

  
	
  John H. Brooks
  & Associates

  	
   

  	
  John H. Brooks,
  Jr.

  	
   

  	
  732-495-3142

  

 

* Blue print denotes changes and/or additions to listing

 

	
   

  	
  Original

  
	
   

  	
  1 of 5

  

 

 

FIRST SUPPLEMENTAL AGREEMENT OF LEASE

between

605 THIRD
AVENUE FEE LLC, Landlord

and

DMJM +
HARRIS, INC., Tenant

 

Dated as
of August 31, 2004

FIRST SUPPLEMENTAL
AGREEMENT OF LEASE (this “Agreement”)
made as of the     day of August, 2004, between 605
THIRD AVENUE FEE LLC, a Delaware limited liability company, having an office
c/o Fisher Brothers, 299 Park Avenue, New York, New York 10171 (“Landlord”) and DMJM + HARRIS, INC.,
formerly known as Frederic R. Harris, Inc., a New York corporation, having an
office at 605 Third Avenue, New York, New York 10158 (“Tenant”).

W
I T N E S S E T H:

WHEREAS, Landlord’s predecessor-in-interest, 605 Third
Avenue LLC, and Tenant entered into that certain Agreement of Lease dated as of
March 17, 1999 (the “Lease”),
pursuant to which Landlord leased to Tenant and Tenant leased from Landlord the
entire 30th Floor (the “30th Floor”)
and 31st floor (the “31st Floor”; together with the 30th Floor,
collectively, the “Existing Premises”)
in the building located at 605 Third Avenue, New York, New York (the “Building”) for a term expiring on
February 28, 2010, or on such earlier date upon which said term may expire or
be canceled or terminated pursuant to any of the conditions or covenants of the
Lease or pursuant to law;

WHEREAS, AECOM Technology Corporation (“Guarantor”) executed a Guaranty of
Lease in favor of Landlord, dated as of March 17, 1999 (the “Guaranty”). guarantying the performance
of Tenant’s obligations under the Lease; and

WHEREAS, Landlord and Tenant desire to modify and
amend the Lease to provide for the inclusion in the premises demised thereunder
(the “demised premises”) of
certain additional space in the Building, to extend the term of the Lease and
to modify and amend the Lease in certain other respects, all as more
particularly set forth herein;

NOW, THEREFORE, in
consideration of the agreements herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows:

ARTICLE 1

TERMS

Section 1.1.              Except as otherwise
defined herein, all terms used in this Agreement shall have the meanings
provided in the Lease.  The term “this Lease” or “the Lease” as used in the Lease shall
mean the Lease as extended and modified pursuant to this Agreement.  The phrases “the term of this Lease” or “the term hereof” as used in the Lease shall be construed
to include the extension of the term of the Lease as provided in this
Agreement.

ARTICLE 2

EFFECTIVE DATE OF
AGREEMENT

Section 2.1.              This Agreement and
all of the terms, provisions and conditions hereof shall be effective as of the
date hereof (the “Effective Date”).

ARTICLE 3

ADDITIONAL PREMISES

Section 3.1.              Commencing on
December 1, 2004 (the “Additional Premises
Adjustment Date”), and for the entire term of the Lease (as
extended in accordance with the terms hereof), there shall be added to and
included in the demised premises the entire rentable portions of the
twenty-ninth (29th) floor (the “29th Floor”)
of the Building and the twenty-seventh (27th) floor (the “27th Floor”) of the Building
(collectively, the “Additional

 2
 

Premises”),
each as more particularly shown as hatched on Exhibit A
and Exhibit A-1annexed hereto.  As of the
Additional Premises Adjustment Date, Landlord does hereby lease to Tenant and
Tenant does hereby hire from Landlord the Additional Premises, and all
references in the Lease to the “demised premises” shall be deemed to include
the 27th Floor and the 29th Floor, respectively, subject and subordinate to all
superior leases and superior mortgages as provided in the Lease and upon and
subject to all the covenants, agreements, terms and conditions of the Lease,
except as modified by this Agreement.

Section 3.2.              [Intentionally
Omitted].

Section 3.3.              The Additional
Premises shall be used solely for the purposes permitted under the Lease.

Section 3.4.              Except as provided
herein, Tenant waives any right to rescind this Agreement under Section 223-a
of the New York Real Property Law or any successor statute of similar nature
and purpose then in force and further waives the right to recover any damages
which may result from Landlord’s failure for any reason to deliver possession of
the Additional Premises pursuant to the terms and conditions contained herein
on the date set forth herein as the Additional Premises Adjustment Date.  If Landlord shall be unable to give possession
to Tenant of either floor of the Additional Premises on the Additional Premises
Adjustment Date pursuant to the terms and conditions contained herein, and
provided that Tenant is not responsible for such inability to give possession,
the Additional Premises Adjustment Date applicable to the floor in question shall
be postponed to the date upon which Landlord shall have delivered possession of
the 29th Floor or the 27th Floor, as applicable, to Tenant pursuant to the
terms and conditions contained herein.  No
such failure to give possession on the Additional Premises Adjustment

 3
 

Date shall in any way affect the validity of this
Agreement or the Lease or the obligations of Tenant hereunder or under the
Lease or give rise to any claim for damages by Tenant or claim for rescission
of this Agreement or the Lease, nor shall the same be construed in any way to
extend the term of the Lease as it relates to the Additional Premises or to
either the 29th Floor or the 27th Floor.  In the event that Landlord is unable to
deliver possession of the 29th Floor to Tenant pursuant to the terms and
conditions contained herein on the date set forth herein as the Additional
Premises Adjustment Date due to the holding over by the current tenant or other
occupant in the 29th Floor beyond the term of such tenant’s lease, Landlord
agrees to use best efforts to obtain possession of the 29th Floor as soon as
possible, including the commencement by Landlord of summary dispossess,
holdover or other applicable proceedings against such tenant or other occupant.

ARTICLE 4

TENANT’S
ADDITIONAL PREMISES WORK

Section 4.1.              (a)          Any alterations to be performed by Tenant in
the Additional Premises to prepare same for Tenant’s initial occupancy thereof
(“Tenant’s Additional Premises Work”)
shall be performed in accordance with Article 8 of the Lease (other than
Section 8.8 thereof) and the applicable provisions of Article 19 hereof.  To the extent that any such costs and expenses
are not covered by the Additional Premises Work Credit provided by Landlord to
Tenant, as subsequently described herein, Tenant shall reimburse Landlord
within thirty (30) days after Landlord’s demand for any actual out-of-pocket
costs and reasonable expenses incurred by Landlord in connection with Landlord’s
review of Tenant’s plans and specifications for Tenant’s Additional Premises
Work (collectively, “Landlord’s Review
Costs”); provided, however, that Tenant shall not be required to
pay to Landlord any

 4
 

supervisory fees or surcharges in connection with
obtaining Landlord’s approval of Tenant’s Additional Premises Work (nor shall
Tenant be obligated to pay any such supervisory fees or surcharges in
connection with obtaining Landlord’s approval of any subsequent alterations to
be performed by Tenant in the demised premises).

(b).         The Approved List set
forth on Exhibit B of the Lease is hereby replaced with the list attached
hereto as Exhibit B.  Subject to the
foregoing, the provisions of Section 3.2(b) of the Lease (including the
requirement that Tenant engage Plaza Construction Corp. as its general
contractor) will apply in connection with the performance of Tenant’s
Additional Premises Work.

(c)             Landlord shall allow
Tenant a credit in the amount of up to ONE MILLION SEVEN HUNDRED TWENTY-SEVEN
THOUSAND SEVEN HUNDRED THIRTY AND 00/100 ($1,727,730.00) DOLLARS (the “Additional Premises Work Credit”),
which credit shall be applied solely against the cost and expense incurred by
Tenant for (i) the actual construction performed in connection with Tenant’s
Additional Premises Work, (ii) moving, architectural, consulting, engineering,
legal fees and other similar fees in connection with Tenant’s Additional
Premises Work performed after the date hereof in accordance with the terms and
provisions of the Lease, including Article 8 of the Lease (other than Section
8.8 thereof) and (iii) Landlord’s Review Costs, and for no other purposes.  In the event that the cost and expense of
Tenant’s Additional Premises Work shall exceed the amount of the Additional
Premises Work Credit, Tenant shall be entirely responsible for such excess.  Any portion of the Additional Premises Work
Credit not applied by Tenant to the costs set forth in the first sentence of
this Section 4.1(c) shall be applied as a credit against the next installments
of fixed annual rent

 5
 

coming due under the Lease following Tenant’s written
notice therefor, which notice shall specify the installments of fixed annual
rent to which such credit will be applied.

(d)            Landlord shall pay to
Tenant installments of the Additional Premises Work Credit within thirty (30)
days after Landlord’s receipt of a written request for disbursement.  The Additional Premises Work Credit shall be
payable to Tenant, or, at Tenant’s request, to its contractors, vendors,
architect, engineer, movers, or other consultants, in installments as Tenant’s
Additional Premises Work progresses, but in no event more frequently than
monthly.

(e)             At any and all times
during the progress of Tenant’s Additional Premises Work, representatives of
Landlord shall have the right of access to the demised premises and inspection
thereof; provided, however, that Landlord shall incur no liability, obligation
or responsibility to Tenant or any third party by reason of such access and
inspection (except, subject to the provisions of Section 12.6 of the Lease and
the waiver of claims and waiver of subrogation set forth therein, to the extent
of any damage caused by Landlord’s negligence or willful misconduct).

(f)               The Additional
Premises Work Credit is being given for the benefit of Tenant or Guarantor,
and/or their affiliates Consoer Townsend Envirodyne Engineers of New York,
Inc., and Metealf & Eddy of New York, Inc. (which the parties acknowledge
will be occupying portions of the demised premises) and their respective parent
companies, only.  No third party shall be
permitted to make any claims against Landlord or Tenant with respect to any
portion of the Additional Premises Work Credit.

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(g)            In the event that
Landlord fails to pay any portion of the Additional Premises Work Credit within
thirty (30) days after the submission of Tenant’s request therefor in
accordance with the foregoing provisions of this Section 4.1 (hereinafter
called the “Unpaid Amount”),
and such failure shall continue for ten (10) business days after Landlord’s
receipt of written notice thereof from Tenant specifically referring to Tenant’s
set-off right contained in this Section 4.l(g) (such tenth (10th) business day
being herein called the “Dispute Deadline
Date”), then, unless under the terms of this Section 4.1, such
Unpaid Amount (or portion thereof) was not required to be paid by Landlord for
the reasons specifically set forth in this Agreement, Tenant shall be entitled
to set off the Unpaid Amount (or portion thereof), plus interest at the Prime
Rate (which shall accrue from the date such amount was due and payable until
the date of such set-off) against the fixed annual rent thereafter coming due
under the Lease; provided, however, that, if on or before the Dispute Deadline
Date with respect to such Unpaid Amount (or portion thereof) Landlord, acting
in good faith, shall have given Tenant a “Dispute Notice” (as such term is
hereinafter defined) with respect to such Unpaid Amount (or portion thereof),
then Tenant shall not have the right to make such set-off except to the extent
that the dispute shall have been resolved in Tenant’s favor by arbitration
pursuant to Section 4.1(h) hereof.  For
purposes hereof, the term “Dispute Notice”
shall mean a written notice from Landlord to Tenant setting forth that Landlord
disputes Tenant’s right to receive all or a portion of any installment of the
Additional Premises Work Credit and specifying in reasonable detail Landlord’s
reasons therefor.

(h)            If either Landlord or
Tenant shall dispute Tenant’s right to receive all or any portion of the
Additional Premises Work Credit, such dispute may be submitted by either party
to arbitration for expedited proceedings under the Expedited Procedures
provisions

 7
 

(currently, Rules 56 through 60) of the Arbitration
Rules of the Real Estate Industry of the American Arbitration Association (the “AAA”).  In any case where the parties utilize such
expedited arbitration: (a) the parties will have no right to object if the
arbitrator so appointed was on the list submitted by the AAA and was not
objected to in accordance with Rule 54 (except that any objection shall be made
within four (4) days from the date of mailing), (b) the Notice of Hearing shall
be given four (4) days in advance of the hearing, (c) the first hearing shall
be held within five (5) business days after the appointment of the arbitrator,
and (d) the losing party in such arbitration shall pay the costs of such
arbitration costs charged by the AAA and/or the arbitrator, together with the
reasonable legal fees and disbursements incurred by the prevailing party in
connection with such arbitration.  Judgment
upon any award rendered in any arbitration held pursuant to this Section 4.1(h)
may be entered in any court having jurisdiction, and in connection therewith,
the arbitrators shall be bound by the provisions of the Lease, and shall not
add to, subtract from or otherwise modify such provisions, and the sole remedy
which may be awarded by the arbitrators in any proceeding pursuant to this
Section 4.1(h) is an order compelling Landlord to pay any portion of the
Additional Premises Work Credit, plus interest at the Prime Rate, which
Landlord was withholding pursuant to the foregoing provisions of this Section,
and, except for the costs and fees described in this clause, the arbitrators
may not award damages or grant any monetary award or other form of relief.

ARTICLE 5

EXTENSION OF TERM

Section 5.1.              The parties hereto
hereby acknowledge and agree that the “Expiration
Date” for the Lease is hereby extended from February 28, 2010 to
August 31, 2019, or such earlier date upon which said term may expire or be
canceled or terminated pursuant to

 8
 

any of the conditions or covenants of the Lease or
pursuant to law.  The parties hereto
hereby acknowledge and agree that it is the intention of the parties that the
term of the Lease be coterminous for the entire demised premises such that the
term of the Lease shall cease and expire for the entire Existing Premises and
Additional Premises on the Expiration Date as extended hereby.

ARTICLE 6

FIXED ANNUAL RENT FOR THE
EXISTING PREMISES

Section 6.1.              Tenant shall continue
to pay fixed annual rent with respect to the Existing Premises through November
30, 2004 in accordance with the provisions of Section 1.1 of the Lease.  During the period commencing on December 1,
2004 and continuing for the remainder of the term of the Lease, the fixed annul
rent payable by Tenant with respect to the Existing Premises shall be at the
following rates: (i) ONE MILLION SIX HUNDRED EIGHT THOUSAND FOUR HUNDRED
FIFTY-EIGHT AND 00/100 ($1,608,458.00) DOLLARS per annum for the period commencing
on December 1, 2004 and ending on August 31, 2009, (ii) ONE MILLION SEVEN
HUNDRED FIFTY-EIGHT THOUSAND EIGHTY-TWO AND 00/100 ($1,758,082.00) DOLLARS per
annum for the period commencing on September 1, 2009 and ending on February 28,
2010, (iii) ONE MILLION EIGHT HUNDRED FOUR THOUSAND NINE HUNDRED EIGHTY-EIGHT
AND 00/100 ($1,804,988.00) DOLLARS per annum for the period commencing on March
1, 2010 and ending on August 31, 2014, and (iv) ONE MILLION NINE HUNDRED
FIFTY-EIGHT THOUSAND SIX HUNDRED FOUR AND 00/100 ($1,958,604.00) DOLLARS per
annum for the period commencing on September 1, 2014 and ending on the
Expiration Date.

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ARTICLE 7

FIXED ANNUAL RENT FOR THE
ADDITIONAL PREMISES

Section 7.1.              Effective as of the
Additional Premises Adjustment Date, the fixed annual rent payable by Tenant
pursuant to Section 1.1 of the Lease shall be increased on account of the
Additional Premises as follows:

(i)                by the sum of: (x)
EIGHT HUNDRED TWENTY-FIVE THOUSAND SIX HUNDRED FORTY-THREE AND 00/100
($825,643.00) DOLLARS per annum allocable to the 29th Floor and (y) EIGHT
HUNDRED TWENTY-FIVE THOUSAND THREE HUNDRED EIGHTY-FIVE AND 00/100 ($825,385.00)
DOLLARS per annum allocable to the 27th Floor, respectively, for the period
commencing on the Additional Premises Adjustment Date and ending on August 31,
2009,

(ii)             by the sum of: (x)
NINE HUNDRED TWO THOUSAND FOUR HUNDRED FORTY-SEVEN AND 00/100 ($902,447.00)
DOLLARS per annum allocable to the 29th Floor and (y) NINE HUNDRED TWO THOUSAND
ONE HUNDRED SIXTY-FIVE AND 00/100 ($902,165.00) DOLLARS per annum allocable to
the 27th Floor, respectively, for the period commencing on September 1, 2009
and ending on August 31, 2014, and

(iii)          by the sum of: (x) NINE
HUNDRED SEVENTY-NINE THOUSAND TWO HUNDRED FIFTY-ONE AND 00/100 ($979,251.00)
DOLLARS per annum allocable to the 29th Floor and (y) NINE HUNDRED
SEVENTY-EIGHT THOUSAND NINE HUNDRED FORTY-FIVE AND 00/100 ($978,945.00) DOLLARS
per annum allocable to the 27th Floor, respectively, for the period commencing
on September 1, 2014 and ending on the Expiration Date.

 10
 

Section 7.2.              [Intentionally
Omitted].

Section 7.3.              Notwithstanding
anything to the contrary contained in Section 7.1 hereof, if the Additional
Premises Adjustment Date for either floor of the Additional Premises is delayed
beyond December 1, 2004, the provisions of Section 7.1 shall be deemed to be
modified (with respect only to the floor in question) to replace the dates
August 31, 2009 and August 31, 2014 set forth therein with the dates occurring
on the last day of the month in which occurs the day preceding the fifth (5th)
anniversary and the (10th) anniversary, respectively, of the Additional
Premises Adjustment Date (with respect only to the floor in question), and to
replace the dates September 1, 2009 and September 1, 2014 set forth therein
with the dates occurring on the first day of the month following the month in
which occurs the day preceding the fifth (5th) anniversary and the (10th)
anniversary, respectively, of the Additional Premises Adjustment Date (with
respect only to the floor in question).

Section 7.4.              Notwithstanding
anything to the contrary contained in this Article 7, the adjustment of fixed
annual rent for the Additional Premises as set forth in Section 7.1 above and
the “escalation rent” due under Articles 4 and 5 of the Lease for the
Additional Premises shall be abated during the fourteen (14) month period
commencing on the Additional Premises Adjustment Date.  The date immediately following the expiration
of such fourteen (14) month period is referred to herein as the “Additional Premises Rent Commencement Date”
(which the parties acknowledge and agree shall be February 1, 2006, unless the
Additional Premises Adjustment Date with respect to either the 27th Floor or
the 29th Floor is delayed beyond the date set forth in Section 3.1 hereof, as
the case the may be).

 11
 

ARTICLE 8

ADDITIONAL RENT CREDIT

Section 8.1.              Landlord agrees to
grant Tenant a credit (the “Rent Credit”) in the
amount of $65,000 per month, to be applied against the monthly installments of
fixed annual rent payable by Tenant with respect to the 27th Floor from February 1, 2006 through and including
December 1, 2006 (or if the Additional Premises Adjustment Date with respect to
the 27th Floor is delayed beyond December 1, 2004, against the monthly
installments of fixed annual rent payable by Tenant with respect to the 27th
Floor during the ten (10) month period starting on the first day of the month
following the month in which occurs the Additional Premises Rent Commencement
Date with respect to the 27th Floor (the “27th Floor Rent Commencement Date”); provided that in no event shall
the aggregate amount of the Rent Credit exceed Six Hundred Fifty Thousand and
00/100 ($650,000.00) Dollars.  Tenant
shall repay to Landlord the aggregate amount of the Rent Credit (together with
interest thereon as hereinafter provided), in equal monthly installments,
during the period (the “Repayment Period”) commencing on the 27th Floor Rent
Commencement Date and continuing thereafter until such time as the aggregate
amount of the Rent Credit granted to Tenant (together with any such interest),
shall have been repaid in full.  For
purposes of calculating the amount of such monthly payments, the amount of the
Rent Credit shall be amortized over a period of seven (7) years with an
interest factor of 6.5%.  Notwithstanding
the foregoing, Tenant shall have the right to repay the principal balance of
the Rent Credit, together with any accrued and unpaid interest, at any time
during the Repayment Period with no prepayment penalties or additional interest
charges attached.

Section 8.2.              Tenant may elect, at
Tenant’s option, to reduce or eliminate the monthly amount of the Rent Credit
by giving Landlord not less than thirty (30) days’ prior

 12
 

written notice of such election, which notice shall
specify whether Tenant elects to reduce or eliminate the monthly amount of the
Rent Credit and, if Tenant elects to reduce same, the amount of the reduction
requested by Tenant.  Commencing with the
next monthly installment of fixed annual rent coming due under the Lease after
Landlord’s receipt of such notice, the amount of the monthly Rent Credit shall
be reduced or eliminated, as the case may be, in accordance with Tenant’s
notice without penalty or the accrual of interest beyond the effective date of
such reduction or elimination, and the amount to be repaid by Tenant pursuant
to Section 8.1 hereof shall be reduced accordingly.

ARTICLE 9

TAX ESCALATIONS

Section 9.1.              Section 4.1(a)(i) of
the Lease shall be modified and amended, (a) effective as of the Additional
Premises Adjustment Date, as such Section relates to the 29th Floor and the
27th Floor, respectively, and (b) effective as of March 1, 2010, as such
Section relates to the Existing Premises only, to read as follows:

“The term “base tax
year” as hereinafter set forth for the determination of real
estate tax escalation shall mean the New York City real estate tax year
commencing July 1, 2004 and ending June 30, 2005.”

Section 9.2.              Effective as of the
Additional Premises Adjustment Date, Section 4.1(a)(ii) of the Lease, as it
relates to the Additional Premises only, shall be modified and amended to read
as follows:

“The term “The Percentage”, for purposes of computing tax
escalation, shall mean the sum of (x) two and fifty-five thousandths of a
percent (2.055%) as it relates to the 29th Floor, and (y) two and fifty-five
thousandths of a percent (2.055%) as it relates to the 27th Floor,
respectively.”

 13
 

ARTICLE 10

EXPENSE
ESCALATIONS

Section 10.1.        Section 5.1(a)(i) of the
Lease shall be modified and amended, (a) effective as of the Additional
Premises Adjustment Date, as such Section relates to the 29th Floor and the
27th Floor, respectively, and (b) effective as of March 1, 2010, as such
Section relates to the Existing Premises only, to read as follows:

“The term “Expense
Base Factor” shall mean the amount of the Expenses for Landlord’s
fiscal year commencing May 1, 2004 and ending April 30, 2005.”

Section 10.2.        Effective as of the
Additional Premises Adjustment Date, Section 5.1(a)(iv) of the Lease, as it
relates to the Additional Premises only, shall be modified and amended to read
as follows:

“The term “The Percentage”, for purposes of computing
expense escalation, shall mean the sum of (x) two and fifty-five thousandths of
a percent (2.055%) as it relates to the 29th Floor, and (y) two and fifty-five
thousandths of a percent (2.055%) as it relates to the 27th Floor,
respectively.”

Section 10.3.        Effective as of the
Additional Premises Adjustment Date, Section 5.1(a)(v) and Section 5.1(b) of
the Lease, as they relate to the Additional Premises only, shall be modified
and amended such that the year “2000” set forth therein shall be deemed to read
“2005.”

ARTICLE 11

ADDITIONAL
PREMISES ELECTRICITY

Section 11.1.        Landlord shall provide
electric energy to the Additional Premises and Tenant shall pay for same in the
same manner as set forth in Article 7 of the Lease with

 14
 

respect to the Existing Premises, including without
limitation the provisions of Section 7.5(a) of the Lease relating to the electrical
capacity of the demised premises (i.e., six (6) watts (volt-amperes) of demand
electrical load per useable square foot, excluding the Building HVAC systems).

Section 11.2.        Landlord shall, at
Landlord’s expense, at or about the date that Tenant occupies each such floor
for the conduct of its business, install a sufficient number of Check Meter(s)
in the 29th Floor or 27th Floor, as applicable, for the purposes described in
Section 7.2(a) of the Lease.

ARTICLE 12

PREPARATION OF THE
ADDITIONAL PREMISES

Section 12.1.        Subject to Section 11.2
above and Section 12.2 below, Tenant agrees that it shall accept the Additional
Premises in the condition in which they exist on the date hereof, ordinary wear
and tear excepted, and that, except as specifically set forth in Sections 11.2
and 12.2, no work is to be performed or materials supplied by Landlord to
prepare the Additional Premises for Tenant’s occupancy or to prepare the
Existing Premises for Tenant’s continued occupancy.

Section 12.2.        Landlord agrees that Landlord,
at its sole cost and expense, shall (i) before or promptly following the
Additional Premises Adjustment Date, supply Tenant with ACP-5 certificates with
respect to the 29th Floor and the 27th Floor, and (ii) on or before the dates
that Tenant is prepared to connect the 29th Floor and the 27th Floor to the
Building Class “E” system, provide a reasonable number of access points at a
Class “E” (ALM) panel for such connections.  Tenant agrees that Tenant, at its sole cost
and expense, shall have the Building’s

 15

Class “E” system contractor connect Tenant’s life
safety and Class “E” hook-ups to the base building system.  Tenant shall be solely responsible for
compliance with Class “E” requirements within the Additional Premises.

Section 12.3. Landlord
represents that, as of the Effective Date, local subpanels exist for connection
of and power to all fire detection and annunciation devices in the Additional
Premises, including speaker/strobes, smoke detectors, pull stations and duct
detectors, and that all of the above are in good working order as of the
Effective Date.

ARTICLE 13

EXTENSION OPTION

Section 13.1.        The extension option set
forth in Article 44 of the Lease shall continue in full force and effect in
accordance with its terms, except that:

(a)             The reference in
Section 44.1(i) of the Lease to “fifteen (15) months” is hereby be replaced
with a reference to “eighteen (18) months”;

(b)            Clause (ii) of Section
44.1(b) of the Lease, the phrase “the higher of immediately preceding
clause (i) of said Section 44.1(b), and Section 44.2(b) of the Lease shall
be deemed deleted; and

(c)             The term “Expiration
Date,” as used in said Article 44, shall be deemed to mean the Expiration Date
as extended by this Agreement.

 16
 

ARTICLE 14

BROKERAGE

Section 14.1.        Tenant represents and warrants
that it neither consulted nor negotiated with any broker or finder with regard
to the Additional Premises, the extension of the Lease or this Agreement other
than Cushman & Wakefield, Inc. (“Broker”).
 Tenant agrees to indemnify, defend and
save Landlord harmless from and against any claims for fees or commissions by
any one other than Broker with whom Tenant has dealt in connection with the
Additional Premises, the extension of the Lease or this Agreement.  Landlord represents and warrants that it neither
consulted nor negotiated with any broker or finder with regard to the
Additional Premises, the extension of the Lease or this Agreement other than
Broker.  Landlord agrees to indemnify,
defend and save Tenant harmless from and against any claims for fees or
commissions by any one other than Broker with whom Landlord has dealt in
connection with the Additional Premises, the extension of the Lease or this
Agreement.  Landlord shall pay Broker a
commission pursuant to a separate agreement.

ARTICLE 15

SIGNAGE

Section 15.1.        Tenant shall have the
right to install identifying signage in the elevator lobbies on the 29th Floor
and the 27th Floor, provided that such signage complies with any applicable
Rules and Regulations.  Furthermore,
Landlord shall provide signage identifying Tenant as an occupant of the 27th
Floor and the 29th Floor inside the four elevators servicing the Additional
Premises (which signage will be similar to the existing signage identifying
Tenant as an occupant of the 30th Floor and the 31st Floor) at no additional
cost to Tenant.

 17
 

Section 15.2.        (a)          Subject to the approval of Neuberger Berman,
LLC (“Neuberger”) (an
existing tenant of the Building), the tenant named herein (the “Named Tenant”) shall have the
right, at its sole cost and expense, to install one sign identifying either the
Named Tenant or Guarantor, at Tenant’s option, in the lobby of the elevator
bank serving the demised premises on the first floor of the Building in the
location shown on Exhibit C annexed hereto, provided that such sign shall be
substantially similar in size, shape, material and appearance to the existing
sign of Neuberger currently located in such elevator lobby, and provided
further that such sign shall comply with any applicable Legal Requirements and
Rules and Regulations.

(b)            The signage rights
granted to Tenant under this Section 15.2: (i) shall apply only to the Named
Tenant and shall not inure to the benefit of any assignee or sublessee of the
Named Tenant and (ii) shall apply only for so long as Tenant and its affiliates
are physically occupying not less than three (3) full floors of the Building.  If at any time during the term of the Lease,
Tenant and its affiliates shall fail to physically occupy at least three (3)
full floors of the Building, Landlord shall have the right to remove such
signage at Tenant’s sole cost and expense.

ARTICLE 16

NON-DISTURBANCE
AGREEMENT

Section 16.1.        Section 11.5 of the Lease
is hereby deleted in its entirety.  Landlord
shall obtain for the benefit of Tenant an amendment, in form and substance
reasonably satisfactory to Tenant, to the currently existing subordination,
non-disturbance and attornment agreement between Tenant and UBS Warburg Real
Estate Investments Inc. dated September 4, 2002, which amendment will incorporate
this Agreement into said subordination,

 18
 

non-disturbance and attornment agreement.  In addition, Landlord shall use commercially
reasonable efforts to obtain for the benefit of Tenant a commercially
reasonable subordination, non-disturbance and attornment agreement from any
future mortgagee or holders of other superior interests affecting the Land
and/or the Building, with such reasonable changes as Tenant may request.  If Landlord fails to satisfy its obligations
under the preceding sentence within sixty (60) days after Landlord’s execution
and delivery of the applicable mortgage or superior lease (or within sixty (60)
days after the creation of the applicable superior interest), the Lease shall
not be subordinate to any such future mortgage or other future superior
interest.

ARTICLE 17

SERVICES

Section 17.1.        Landlord shall furnish air
conditioning, ventilation and heating to the Additional Premises in accordance
with Section 32.2 and Exhibit I of the Lease.

Section 17.2.        (a)          Landlord shall provide Tenant with, and
Tenant agrees to purchase from Landlord, up to 46 tons (23 tons per floor) of
condenser water for the supplemental air conditioning needs of Tenant in the
Additional Premises, at the rate of $800 per ton per annum (which charge for
condenser water shall be increased annually based upon the percentage increases
in Expenses over and above the Expenses for the immediately preceding calendar
year).  No later than March 1, 2005 with
respect to both floors of the Additional Premises, Tenant shall notify Landlord
in writing of the amount of tons of condenser water, up to 23 tons per floor,
Tenant desires to reserve for such floor for the balance of the term of the
Lease.  Should Tenant fail to timely
deliver the applicable notice set forth in the immediately preceding sentence,
then Tenant shall be deemed to have reserved 23 tons of condenser water for the
floor in question for the balance of the term of the Lease.  Notwithstanding the foregoing,

 19
 

Tenant shall have the right at any time during the
term of the Lease, upon written notice to Landlord, to reduce the amount of
condenser water it has reserved hereunder for the Additional Premises;
provided, that should Tenant require additional condenser water after any such
reduction, Landlord shall only be required to fulfill such needs on an “as
available” basis.  Tenant shall commence
payment for the condenser water for the 29th Floor and the 27th Floor,
respectively, from and after the Additional Premises Adjustment Date.

(b)            Tenant shall not be
responsible for the cost and expense of “tap-in” charges for the installation
of a new or existing riser-connected water valve required in order to operate a
supplemental air conditioning system in the Additional Premises, provided
Tenant shall be responsible for the cost and expense of the connection to such
valve, whether new or existing, of such supplemental air conditioning system.

(c)             Notwithstanding
anything to the contrary contained herein, effective as of March 1, 2010 (the “Condenser Water Change Date”), the charges
payable by Tenant for condenser water provided to the Existing Premises
pursuant to Section 32.2(d) of the Lease shall be reduced to the same rate
which is payable by Tenant as of the Condenser Water Change Date for condenser
water provided to the Additional Premises (on a per ton per annum basis), as
such charges shall have been increased in accordance with Section 17.2[a] above
(i.e., $800 per ton per annum, subject to annual increases as set forth in
Section 17.2(a) hereof).

Section 17.3.        Landlord shall provide
cleaning services to the Additional Premises in accordance with Section 32.8
and Exhibit J of the Lease.

Section 17.4.        Landlord will, at the
request of Tenant, maintain listings on the Building directory of the names of
Tenant, its subsidiaries and officers occupying space in the

 20
 

Additional Premises in accordance with Section 32.11
of the Lease.  The initial installation
of additional directory listings for the Additional Premises shall be at
Landlord’s sole cost and expense.  In
addition, Tenant shall have a one-time right to make changes or additions to
its existing directory listings before June 1, 2006, and such changes or
additions will be at Landlord’s sole cost and expense.

Section 17.5.         Notwithstanding anything
to the contrary contained in Article 32 of the Lease, Tenant shall have the
use, after reasonable prior notice to Landlord, of the freight elevators,
loading docks and required security at times other than during business hours,
seven (7) days per week, at no cost to Tenant, in connection with the
performance of Tenant’s Additional Premises Work and during Tenant’s initial
move into the Additional Premises.  Notwithstanding
the foregoing, but subject to the other provisions of this Section 17.5, (a) in
no event shall such free usage exceed twelve (12) consecutive hours of usage on
business days (eight (8) of such twelve (12) hours occurring between the hours
of 8:00 a.m. and 6:00 p.m.) or eight (8) consecutive hours on a Saturday, and
(b) Tenant shall be entitled to such free usage in order to meet Tenant’s
reasonable needs for usage of the freight elevators, loading docks and required
security on Sundays in connection with Tenant’s Additional Premises Work, and
Tenant shall be entitled to unlimited free usage of the freight elevators,
loading docks and required security on Sundays in connection with Tenant’s
initial move into the Additional Premises.  Such elevators, loading docks and security
shall be available for Tenant’s use on a priority (but not exclusive) basis
taking into account the reasonable needs of Landlord and other tenants and
occupants of the Building on a day-to-day basis.  Tenant or Tenant’s contractor shall coordinate
Tenant’s use of such elevators, loading docks and security with Landlord and
any other tenant or occupant or other tenant’s or occupant’s contractors then
using, or intending to use, same.

 21
 

ARTICLE 18

BUILDING STAIRS

Section 18.1.        Tenant and it employees
and invitees shall have the non-exclusive right to use the core staircase of
the Building (the “Building Stairs”)
to travel between the floors of the demised premises at all times during the
term of the Lease, subject to any applicable Legal Requirements and
requirements of insurance bodies, any applicable provisions of the Lease, and
any reasonable rules and restrictions that Landlord may impose during the term
of the Lease with respect to such usage, provided that (a) such usage shall not
(i) impose any additional liability on Landlord, (ii) impose any additional
burden on Landlord in connection with the maintenance and operation of the
Building, (iii) cause any increase in Landlord’s insurance costs or Landlord’s
other costs in connection with the maintenance and operation of the Building,
(iv) cause any insurance policies maintained with respect to the Building to be
voided, or (v) cause a violation of any Legal Requirements or requirements of
insurance bodies; (b) Tenant and its employees and invitees shall use the
Building Stairs in such a manner that the entry doors to same remain securely
closed at all times when they are not in use (i.e., such doors shall not be
propped open); and (c) Tenant shall not make any alterations or modifications
to the Building Stairs or to the Building Class “E” system.  Notwithstanding the foregoing, Tenant shall
have the right, at Tenant’s sole cost and expense, and subject to the
applicable provisions of the Lease, to perform such work as may be necessary to
tie the entry doors to the Building Stairs into Tenant’s security system for
the demised premises, provided that such work conforms to the Building Class “E”
System and does not affect or interfere with the operation of such system or
prevent same from complying with applicable Legal Requirements.  Notwithstanding anything to the contrary
contained herein, Landlord shall have the right, upon written notice to Tenant,
to revoke

 22
 

Tenant’s right to use the Building Stairs pursuant to
this Article 18 at any time during the term of the Lease if deemed appropriate,
in Landlord’s reasonable discretion, for the reputation, safety, care and
appearance of the Building or the operation or maintenance thereof, or if
deemed necessary, in Landlord’s reasonable discretion, in light of any
applicable Legal Requirements or requirements of insurance bodies.

ARTICLE 19

SPRINKLER WORK

Section 19.1.        Landlord and Tenant hereby
acknowledge that Local Law 26 of 2004 (“Local Law 26”), which is currently in
effect, requires the installation of sprinklers throughout the Building by not
later than July 1, 2019.  Notwithstanding
the foregoing, Landlord and Tenant hereby agree as follows: (a) Tenant shall
not be required to cause the Existing Premises to comply with Local Law 26
unless Tenant performs any alterations therein that require a permit from the
Department of Buildings of the City of New York or any other applicable public
authority (a “Permit”); (b)
if any alterations performed by Tenant in the Existing Premises require a
Permit, Tenant shall cause the portions of the Existing Premises affected by
such alterations to comply with Local Law 26; (c) Tenant shall cause the
27th Floor to comply with Local Law 26 in the course of performing Tenant’s
Additional Premises Work therein; and (d) Tenant shall cause the 29th Floor to
comply with Local Law 26 by not later than June 30, 2015 (failing which
Landlord will be entitled to perform the work necessary to cause such
compliance and assess the cost thereof to Tenant as provided in the Lease,
including without limitation in Section 21.1 thereof).  The provisions of this Article 19 shall not be
deemed to modify or limit any obligations of Tenant pursuant to Articles 8 and
10 of the Lease or any other applicable provisions of the Lease.

 23
 

ARTICLE 20

TERMINATION RIGHT

Section 20.1.        Tenant may elect, at
Tenant’s option, to terminate the Lease, and the term and estate thereby
granted, with respect to the entire demised premises or a portion thereof
consisting of one or more full floors of the demised premises as of February 1,
2016 (such date, in either case, being hereinafter called the “Termination Date”), provided that (i)
Tenant shall give Landlord written notice (hereinafter called the “Termination Notice”) of its election to
so terminate the Lease with respect to the entire demised premises or such
portion thereof (the entire demised premises or such portion thereof with
respect to which Tenant so elects to terminate the Lease being hereinafter
called the “Terminated Space”)
not less than twenty-four (24) months prior to the Termination Date (time being
of the essence with respect to the giving of the Termination Notice), and which
notice shall set forth the Terminated Space in question, and (ii)
contemporaneously with giving the Termination Notice, Tenant shall pay to
Landlord a termination payment (the “Termination
Payment”) equal to $869,440 with respect to the 27th Floor,
$668,416 with respect to the 29th Floor, $192,637 with respect to the 30th
Floor and/or $192,637 with respect to the 31st Floor (or the sum of such
amounts which are applicable to the floors included in the Terminated Space).

Section 20.2.        In the event of the giving
of such Termination Notice and the making of the Termination Payment, the Lease
and the term and estate thereby granted (unless the same shall have expired
sooner pursuant to any of the conditions of limitation or other provisions of
the Lease or pursuant to law) shall terminate with respect to the Terminated
Space on the Termination Date with the same effect as if such date were the
date therein specified for the expiration of the term of the Lease with respect
thereto, and the fixed annual rent and other

 24
 

charges payable under the Lease (other than the
Termination Payment) shall be apportioned as of the Termination Date.

Section 20.3.        In the event that Tenant
does not send the Termination Notice to Landlord on or before the date set
forth in Section 20.1 hereof, this Article 20 shall be deemed null and void and
deleted from this Agreement.

ARTICLE 21

ASSIGNMENT AND
SUBLETTING

Section 21.1.        Section 15.2 of the Lease
is hereby modified by adding the phrase “provided that in any of such events
such transaction shall be for a good business purpose and not principally for
the purpose of transferring this Lease” at the end thereof.

ARTICLE 22

MISCELLANEOUS

Section 22.1.        Except as modified,
amended and supplemented by this Agreement, the terms and provisions of the
Lease (including without limitation Section 46.2 thereof) shall continue in
full force and effect in accordance with their terms and are hereby ratified
and confirmed.

Section 22.2.        This Agreement shall not
be binding upon Landlord and Tenant unless and until this Agreement is signed
by both parties hereto and a signed copy thereof is delivered by Landlord to
Tenant.

Section 22.3.        This Agreement constitutes
the entire agreement among the parties hereto with respect to the matters
stated herein and may not be amended or modified unless such

 25
 

amendment or modification shall be in writing and
signed by the party against whom enforcement is sought.

Section 22.4.        The terms, covenants and
conditions contained in this Agreement shall bind and inure to the benefit of
the parties hereto and their respective successors and assigns.

Section 22.5.        This Agreement shall be
governed in all respects by the laws of the State of New York.

Section 22.6.        This Agreement may be
executed in one or more counterparts each of which, when taken together, shall
constitute one and the same instrument.

IN WITNESS WHEREOF, the
parties hereto have executed this Agreement as of the day and year first above
written.

	
  

  	
  605 THIRD AVENUE
  FEE LLC, Landlord

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard L.
  Fisher

  	
   

  
	
   

  	
   

  	
  Richard L.
  Fisher

  
	
   

  	
   

  	
  Co-President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David L. Fey

  	
   

  
	
   

  	
   

  	
  David L. Fey

  
	
   

  	
   

  	
  Co-President

  

 

[SIGNATURE
PAGE CONTINUES ON NEXT PAGE]

 26
 

 

	
  

  	
   

  	
  DMJM + HARRIS,
  INC., Tenant

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Frederick W.
  Werner

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Frederick W.
  Werner

  
	
   

  	
   

  	
  Title:

  	
  President and
  COO

  

 

[Guarantor’s
signature page is next page]

 27

The undersigned hereby reaffirms that certain Guaranty
of Lease, dated as of March 17, 1999, made by the undersigned in favor of
Landlord, and acknowledges that the references therein to the Lease shall be
deemed to be references to the Lease as amended hereby.

	
  

  	
   

  	
  AECOM TECHNOLOGY CORPORATION,

  Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Paul E. Schwartz

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
  PAUL E. SCHWARTZ

  
	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  
						

 

	
  STATE OF NEW
  YORK 

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On the 20th day of  September the year 2004 before me, the
undersigned, personally appeared Paul E. Schwartz personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument and acknowledged to me that he executed
the same in his capacity and that by his signature on the instrument, the
individual or the person upon behalf of which the individual acted, executed
the instrument.

	
  

  	
   

  	
  /s/ Robert K. Orlin

  
	
   

  	
   

  	
  Notary Public

  

 

My commission expires:

	
  ROBERT K. ORLIN

  Notary Public, State of New York

  No. 020R5087994

  Qualified in Suffolk County

  Commission Expires November 10, 2005

  	
   

  	
   

  

 

 27A

 

	
  STATE OF NEW
  YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

On the 31st day of August
inthe year 2004 before me, the
undersigned, personally appeared Frederick W. Werner personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his capacity and that by his signature on the instrument,
the individual or the person upon behalf of which the individual acted, executed
the instrument.

 

	
   

  	
   

  	
  /s/ Denise Jenkins

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  DENISE JENKINS

  
	
  My commission expires: June 18, 2007

  	
   

  	
  Notary Public,
  State of New York

  
	
  [Seal]

  	
   

  	
  No. 01JE8060154

  
	
   

  	
   

  	
  Qualified in New
  York County

  
	
   

  	
   

  	
  Commission
  Expires June 18, 2007

  

 

	
  STATE OF NEW
  YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

On the 28th day of September
in the year 2004 before
me, the undersigned, personally appeared [ILLEGIBLE] personally known to me or proved
to me on the basis of satisfactory evidence to be the individual whose name is
subscribed to the within instrument and acknowledged to me that he executed the
same in his capacity and that by his signature on the instrument, the
individual or the person upon behalf of which the individual acted, executed
the instrument.

	
   

  	
   

  	
  /s Dana L Green

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
  My commission expires:

  	
   

  	
  DANA L GREEN

  
	
  [Seal]

  	
   

  	
  Notary Public,
  State of New York

  
	
   

  	
   

  	
  No. 01GR6089940

  
	
   

  	
   

  	
  Qualified in
  Kings County

  
	
   

  	
   

  	
  Commission
  Expires March 31, 2007

  

 

 28
 

 

	
  STATE OF NEW
  YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

On the 28th day of September inthe year 2004 before me, the undersigned, personally appeared David L. Fey personally known to me or
proved to me on the basis of satisfactory evidence to be the individual whose
name is subscribed to the within instrument and acknowledged to me that he
executed the same in his capacity and that by his signature on the instrument,
the individual or the person upon behalf of which the individual acted,
executed the instrument.

 

	
   

  	
   

  	
  /s/ Juliette S. Ally

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  JULIETTE S. ALLY

  
	
   

  	
   

  	
  Notary Public,
  State of New York

  
	
   

  	
   

  	
  No. 01AL6059789

  
	
  My commission expires:

  	
   

  	
  Qualified in New
  York County

  
	
  [Seal]

  	
   

  	
  Commission
  Expires June 4, 2007

  

 

 

	
  STATE OF NEW
  YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW
  YORK

  	
  )

  	
   

  

On the        day
of                  inthe year 2004 before me, the
undersigned, personally appeared                            
personally known to me or proved to me on the basis of satisfactory
evidence to be the individual whose name is subscribed to the within instrument
and acknowledged to me that he executed the same in his capacity and that by
his signature on the instrument, the individual or the person upon behalf of
which the individual acted, executed the instrument.

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  
	
  My commission expires:

  	
   

  	
   

  
	
  [Seal]

  	
   

  	
   

  

 

 29

EXHIBIT A

[GRAPHIC]

EXHIBIT A-1

[GRAPHIC]

 

	
  APPROVED BUILDING CONTRACTORS

  	
  Revised

  
	
  FOR THE USE OF FISHER BROTHERS’ TENANTS

  	
  8/26/04

  

 

	
  CONTRACTOR

  	
   

  	
  CONTACT

  	
   

  	
  TELEPHONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  GENERAL CONTRACTORS

  	
   

  	
   

  	
   

  	
   

  
	
  Americon Construction, Inc.

  	
   

  	
  Richard Cucci/Thomas Prince

  	
   

  	
  (212) 274-0190

  
	
  James E. Fitzgerald

  	
   

  	
  Hugh O’Connell

  	
   

  	
  (212) 921-8700

  
	
  Plaza Construction Corporation

  	
   

  	
  Richard Wood

  	
   

  	
  (212) 849-4800

  
	
  Quadrant Construction

  	
   

  	
  Bob Jacobsen

  	
   

  	
  (212) 697-4007

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVAC

  	
   

  	
   

  	
   

  	
   

  
	
  B.P. Air Conditioning Corp.

  	
   

  	
  Robert Barbera

  	
   

  	
  (718) 383-2100

  
	
  Arista Air Conditioning

  	
   

  	
  Kenneth N. Mayo

  	
   

  	
  (718) 729-7111

  
	
  * Donnelly Mechanical Corporation

  	
   

  	
  Daniel T. Donnelly

  	
   

  	
  (718) 886-1500

  
	
  Harbour Mechanical

  	
   

  	
  Joe Bryceland

  	
   

  	
  (212) 924-1010

  
	
  J.D.P. Mechanical Corp.

  	
   

  	
  Peter Manos, Jr.

  	
   

  	
  (718) 267-6767

  
	
  P.J. Mechanical

  	
   

  	
  Peter or Chris Pappas

  	
   

  	
  (212) 243-2555

  
	
  Penguin Air Conditioning Corp.

  	
   

  	
  Dan Dubin

  	
   

  	
  (718) 706-6500

  
	
  Sound Refrigeration & Air Conditioning, Inc.

  	
   

  	
  Robert Gulmi

  	
   

  	
  (516) 747-5678

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AIR & WATER BALANCING

  	
   

  	
   

  	
   

  	
   

  
	
  Merendino Associates Inc.

  	
   

  	
  Michael Merendino

  	
   

  	
  (718) 599-1300

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL “A”

  	
   

  	
   

  	
   

  	
   

  
	
  (All Base Building Switches & Risers)

  	
   

  	
   

  	
   

  	
   

  
	
  ADCO - Electric

  	
   

  	
  Edward Welsh

  	
   

  	
  (718) 494-4400

  
	
  Arc Electrical Construction Co., Inc.

  	
   

  	
  Vincent Lolacono

  	
   

  	
  (212) 573-9600

  
	
  * Consolidated Electric Company, Inc.

  	
   

  	
  Ken Michael

  	
   

  	
  (212) 661-9555

  
	
  Forest Electric Corp.

  	
   

  	
  Phil Althelm / Paul Rlzzo

  	
   

  	
  (212) 318-1500

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL “B”

  	
   

  	
   

  	
   

  	
   

  
	
  (Tenant Work)

  	
   

  	
   

  	
   

  	
   

  
	
  ADCO - Electric

  	
   

  	
  Edward Welsh

  	
   

  	
  (718) 494-4400

  
	
  Arc Electrical Construction Co., Inc.

  	
   

  	
  Vincent Loiacono

  	
   

  	
  (212) 573-9600

  
	
  Campbell & Dawes Ltd.

  	
   

  	
  Gary Dawes

  	
   

  	
  (718) 441-6300

  
	
  E-J Electric Installation Co.

  	
   

  	
  J. Robert Mann, Jr.

  	
   

  	
  (718) 786-9400

  
	
  Forest Electric Corp.

  	
   

  	
  Phil Althelm / Paul Rizzo

  	
   

  	
  (212) 318-1500

  
	
  Kleinknecht Electric Co., Inc.

  	
   

  	
  Mike Malherb

  	
   

  	
  (212) 728-1800

  
	
  Nead Electric

  	
   

  	
  Robert Mishlen

  	
   

  	
  (201) 460-5200

  
	
  Petrocelli Electric Co., Inc.

  	
   

  	
  Santo Petrocelli, Jr.

  	
   

  	
  (718) 937-1200

  
	
  * Robert B. Samuels, Inc.

  	
   

  	
  David 1. Samuels

  	
   

  	
  (212) 645-5150

  
	
  Zwicker Electric Co., Inc.

  	
   

  	
  Robert Leporo / Noil DeVincenzo

  	
   

  	
  (212) 477-8400

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAINTING

  	
   

  	
   

  	
   

  	
   

  
	
  Albert Pearlman Inc.

  	
   

  	
  Joseph Vltlello

  	
   

  	
  (212) 687-5055

  
	
  Antovol Gelberg Painting Inc.

  	
   

  	
  Suresh Babarl / Grant Albert

  	
   

  	
  (718) 937-3520

  
	
  Bond Painting Co, Inc.

  	
   

  	
  Kenny Sprecher /Stuart Fold

  	
   

  	
  (212) 944-0070

  
	
  Cosmopolitan Decorating

  	
   

  	
  Dave Ansbacher

  	
   

  	
  (212) 586-6438

  
	
  L & L Painting

  	
   

  	
  Brad Zorfas

  	
   

  	
  (516) 349-1900

  
	
  Morestar Painting

  	
   

  	
  Roy Katzman

  	
   

  	
  (212) 982-4255

  
	
  Newport Painting & Decorating Co., Inc.

  	
   

  	
  Ralph Lanza

  	
   

  	
  (212) 465-9080

  
	
  Prestige Painting Inc.

  	
   

  	
  Mendel Klein

  	
   

  	
  (212) 943-6777

  
	
  Spectrum Painting Contractors

  	
   

  	
  Rino Montefore

  	
   

  	
  (718) 892-0700

  
	
  Werner Krebs, Inc.

  	
   

  	
  Joseph Tamweber

  	
   

  	
  (914) 376-8900

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PLUMBING

  	
   

  	
   

  	
   

  	
   

  
	
  Ashland Plumbing and Heating Corp.

  	
   

  	
  Herb Arnold

  	
   

  	
  (212) 989-1320

  
	
  George Breslaw & Sons, Inc.

  	
   

  	
  Michael Breslaw

  	
   

  	
  (212) 265-4023

  
	
  Pace Plumbing Corporation

  	
   

  	
  Andru Coren

  	
   

  	
  (718) 389-6100

  
	
  Par Plumbing Co. Inc.

  	
   

  	
  Marty Levine / Larry Levine

  	
   

  	
  (516) 887-4000

  

 

* Blue print denotes changes and/or additions to list

EXHIBIT B

 1
 

 

	
  CONTRACTOR

  	
   

  	
  CONTACT

  	
   

  	
  TELEPHONE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECURITY INSTALLATIONS

  	
   

  	
   

  	
   

  	
   

  
	
  Technical Edge Security Systems, Inc.

  	
   

  	
  Joe Gee

  	
   

  	
  (718) 224-9348

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPRINKLER

  	
   

  	
   

  	
   

  	
   

  
	
  Abco - Peerless Corp. Inc.

  	
   

  	
  Peter Bowe

  	
   

  	
  (516) 294-6850

  
	
  Active Fire Sprinkler Corp.

  	
   

  	
  Morty Hirsch / Diana Blanda / Michael Nelson

  	
   

  	
  (718) 834-8300

  
	
  Bolrose Fire Suppression Inc.

  	
   

  	
  Mike Hartigan

  	
   

  	
  (516) 378-9590

  
	
  Rael Automatic Sprinkler Co. Inc.

  	
   

  	
  David Israel / Norman Israel

  	
   

  	
  (516) 593-2000

  
	
  Sirina Fire Protection Corp.

  	
   

  	
  Rocco Abbate

  	
   

  	
  (516) 942-0400

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STRUCTURAL STEEL & MISC.
  IRON

  	
   

  	
   

  	
   

  	
   

  
	
  Burgess Steel Products Corp.

  	
   

  	
  Matthew Guerin

  	
   

  	
  (201) 871-3500

  
	
  Hallen Steel Corp.

  	
   

  	
  Stephen DeGregory

  	
   

  	
  (718) 784-1730

  
	
  Kraman Ironworks, Inc.

  	
   

  	
  James Fassler

  	
   

  	
  (212) 460-8400

  
	
  Northeastern Fabricators Inc.

  	
   

  	
  Anthony DiDonato

  	
   

  	
  (718) 542-0450

  
	
  Piermont Iron Works

  	
   

  	
  David Finucane

  	
   

  	
  (973) 837-1750

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HARDWARE

  	
   

  	
   

  	
   

  	
   

  
	
  AAA Hardware

  	
   

  	
  William Brown

  	
   

  	
  (212) 840-3939

  
	
  Acme Architectural Products

  	
   

  	
  Joseph Licari

  	
   

  	
  (718) 384-7800

  
	
  DCI Metro (formerly Vision Hardware)

  	
   

  	
  William Mihatov

  	
   

  	
  (973) 424-0186

  
	
  Welnstein & Hottzman

  	
   

  	
  Ira Hymowitz

  	
   

  	
  (212) 233-4651

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEMOLITION

  	
   

  	
   

  	
   

  	
   

  
	
  Castle Demolition Corp.

  	
   

  	
  Carlo Casalino

  	
   

  	
  (718) 424-0300

  
	
  Liberty Contracting Corp.

  	
   

  	
  Frank Cali

  	
   

  	
  (201) 868-7500

  
	
  Patriot Contracting Corp.

  	
   

  	
  Charles Becker

  	
   

  	
  (201) 413-9800

  
	
  Phoenix Interiors, Inc.

  	
   

  	
  William Palmadessa

  	
   

  	
  (201) 402-9200

  
	
  Riteway Internal Removal

  	
   

  	
  Leroy Barrocca

  	
   

  	
  (718) 458-8900

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDUSTRIAL HYGIENISTS

  	
   

  	
   

  	
   

  	
   

  
	
  Ambient Group Inc.

  	
   

  	
  John Leltner

  	
   

  	
  (212) 944-4615

  
	
  G.C.I. Environmental

  	
   

  	
  James Grond

  	
   

  	
  (212) 986-9460

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABATEMENT CONTRACTORS

  	
   

  	
   

  	
   

  	
   

  
	
  P.A.L. Environmental Safety Corp.

  	
   

  	
  Salvatore DiLorenzo

  	
   

  	
  (718) 349-0900

  
	
  Safeway Environmental Corp.

  	
   

  	
  Donald Adler

  	
   

  	
  (718) 746-4300

  
	
  Seasons Contracting Corp.

  	
   

  	
  Dan Margiotta

  	
   

  	
  (201) 804-8787

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RECOMMENDED CONSULTING
  ENGINEERS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical/Mechanical

  	
   

  	
   

  	
   

  	
   

  
	
  Cosentini Associates

  	
   

  	
  Mechanical: Ed Barbleri

  	
   

  	
  (212) 615-3600

  
	
   

  	
   

  	
  Electrical: Charles Buscarino

  	
   

  	
  (212) 615-3600

  
	
  Structural

  	
   

  	
   

  	
   

  	
   

  
	
  Office of James Ruderman

  	
   

  	
  Howard Zwieg

  	
   

  	
  (212) 643-1414

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fireproofing & Concrete
  Inspections

  	
   

  	
   

  	
   

  	
   

  
	
  Teswell Laboratories Inc.

  	
   

  	
  Paul Moretti

  	
   

  	
  (914) 762-9000

  
	
  John H. Brooks & Associates

  	
   

  	
  John H. Brooks, Jr.

  	
   

  	
  (732) 495-3142

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Welding Inspection • Engineer

  	
   

  	
   

  	
   

  	
   

  
	
  John H. Brooks & Associates

  	
   

  	
  John H. Brooks, Jr.

  	
   

  	
  (732) 495-3142

  

 

* Blue print denotes changes and/or additions to list   * Ritoway Internal Removal formerly Ritoway Interior
Demolition, Inc.

 

EXHIBIT B-1

 2

[GRAPHIC]

EXHIBIT C

TENANT ESTOPPEL
CERTIFICATE

	
  To:

  	
  UBS Warburg Real
  Estate Investments Inc., its successors and/or assigns (“Lender”)

  
	
   

  	
   

  
	
  Re:

  	
  Property
  Address: 605 Third Avenue, New York, New York (“Property”)
Lease Date: March 17, 1999

  Between: 605 Third Avenue LLC (“Landlord”) and
  Frederic R. Harris, Inc. (“Tenant”)
Square Footage Leased: 37,406

  Suite No./Floor: 30 & 31 (“Premises”)

  

 

Tenant understands that
Lender is contemplating making a loan (the “Loan”) to Landlord. The undersigned, as the
tenant under the above-referenced lease (“Lease”),
hereby certifies to Lender the following:

1. The Lease is in full
force and effect and has not been modified, supplemented or amended in any way
except as may be set forth on Schedule 1 attached hereto, and the Lease
represents the entire agreement between the parties as to the Premises or any
portion thereof.

2. The amount of fixed
monthly rent is $134,038.17. The base year (as defined in the Lease) for
operating expenses is the fiscal year ending April 30, 2000 and the base year
(as defined in the Lease) for real estate taxes is the fiscal year ending June
30, 2000. No such rent has been or will be paid more than one (1) month in
advance of its due date.

3. The undersigned’s
security deposit is $0. The undersigned has paid rent for the Premises up to
and including August 31, 2002. The undersigned hereby waives collection of the
deposit against Lender or any purchaser at a foreclosure sale, unless Lender or
such purchaser actually received the deposit from Landlord.

4. The undersigned is
currently in occupancy.

5. The Lease will not be
altered or amended, without Lender’s prior written consent, except as may be
permitted in the Loan documents.

6. The Lease has
commenced and the Lease terminates on February 28, 2010 and we have the
following renewal/extension option(s); Pursuant to terms of Article 44 of the
Lease, Tenant shall have the right to extend the term of the Lease for an
additional term of five (5) years.

7. All work to be
performed for us under the Lease has been performed as required and has been
accepted by us; and any payments, free rent, or other payments, credits,
allowances or abatements required to be given by Landlord to us have already
been received by us.

8. The Lease is free from
default by Landlord; we have no offset, defense, deduction or claim against
Landlord.

9. The undersigned has
received no notice of any prior sale, assignment, pledge or other transfer of
the said Lease or of the rents received therein, except:                                                     .

10. The undersigned has
not assigned said Lease or sublet all or any portion of the Premises, the
undersigned does not hold the Premises under assignment or sublease, nor does
anyone except us and our employees occupy the Premises except:                                                     .

11. The undersigned has
no right or option to purchase all or any part of the Premises or the building
of which the Premises is a part. The undersigned has no right or option to
occupy any additional space at the Property, except as may be specifically set
forth in the Lease.

12. No actions, whether
voluntary or otherwise, are pending against the undersigned under the
bankruptcy laws of the United States or any state and there are no claims or
actions pending against the undersigned which if decided against us would
materially and adversely affect our financial condition or our ability to
perform the tenant’s obligations under the Lease; and

13. Tenant agrees to pay
all rents and other amounts due under the Lease directly to Lender upon receipt
of written demand by Lender, and Landlord hereby consents thereto. The
assignment of the Lease to Lender, or collection of rents by Lender pursuant to
such assignment, shall not obligate Lender to perform Landlord’s obligations
under the Lease.

14. If the undersigned is
not the party named in the Lease, describe below the chain of assignments into
the undersigned: Not applicable.

15. The statements
contained herein may be relied upon by the Lender its successors and assigns
and by third (3rd) parties who are interested in the matters covered by this
Tenant Estoppel Certificate.

16. In the event that
Lender succeeds to the interest of Landlord or any successor to Landlord, then
Tenant hereby agrees to attorn to and accept Lender and to recognize Lender as
its landlord under the Lease for the then remaining balance of the term thereof
and the Lease shall be unconditionally subject and subordinate to the mortgage
held by Lender and the lien thereof, and to all the terms, conditions and
provisions set forth in such mortgage and to all renewals, modifications,
consolidations, replacements, substitutions and extensions thereof.

 2

The undersigned is duly authorized to execute this certificate.

Dated this 22nd day of August, 2002.

	
  

  	
  DMJM + HARRIS, INC.

  
	
   

  	
  (FKA FREDERIC R. HARRIS, INC.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul E. Schwartz

  
	
   

  	
   

  	
  Name: Paul E. Schwartz

  
	
   

  	
   

  	
  Its: SENIOR VP & CFO

  

 

 

 

 

AGREEMENT OF LEASE

between

605 THIRD AVENUE LLC

Landlord,

and

FREDERIC R. HARRIS, INC.

Tenant,

Premises:

605 Third Avenue

New York, New York

Entire 30th and 31st Floors

 

 

TABLE OF CONTENTS

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1

  	
  RENT

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  OCCUPANCY

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  PREPARATION OF THE DEMISED PREMISES

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  TAX ESCALATION

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  EXPENSE ESCALATION

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  INTENTIONALLY DELETED

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7

  	
  ELECTRICITY

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  ALTERATIONS AND INSTALLATIONS

  	
  36

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  REPAIRS

  	
  41

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  REQUIREMENTS OF LAW; FIRE INSURANCE

  	
  43

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  SUBORDINATION, NOTICE TO LESSORS AND MORTGAGEES

  	
  45

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  LOSS, DAMAGE, REIMBURSEMENT, LIABILITY, ETC.

  	
  48

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  DESTRUCTION - FIRE OR OTHER CASUALTY

  	
  51

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  EMINENT DOMAIN

  	
  54

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15

  	
  ASSIGNMENT, MORTGAGING, SUBLETTING, ETC.

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  ACCESS TO DEMISED PREMISES; CHANGES

  	
  64

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17

  	
  CERTIFICATE OF OCCUPANCY

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18

  	
  BANKRUPTCY

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19

  	
  DEFAULT

  	
  69

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20

  	
  REMEDIES OF LANDLORD; WAIVER OF REDEMPTION

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21

  	
  FEES AND EXPENSES; INTEREST; TENANT’S RIGHT TO CURE

  	
  74

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22

  	
  NO REPRESENTATIONS BY LANDLORD

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23

  	
  END OF TERM

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24

  	
  QUIET ENJOYMENT

  	
  78

  

 

 i
 

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25

  	
  DEFINITIONS

  	
  79

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26

  	
  ADJACENT EXCAVATION — SHORING

  	
  80

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27

  	
  RULES AND REGULATIONS

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28

  	
  NO WAIVER

  	
  82

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29

  	
  WAIVER OF TRIAL BY JURY

  	
  83

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30

  	
  INABILITY TO PERFORM

  	
  84

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31

  	
  NOTICES

  	
  85

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32

  	
  SERVICES

  	
  86

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33

  	
  ARBITRATION

  	
  92

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34

  	
  CONSENTS AND APPROVALS

  	
  93

  
	
   

  	
   

  	
   

  
	
  ARTICLE 35

  	
  INDEMNITY

  	
  94

  
	
   

  	
   

  	
   

  
	
  ARTICLE 36

  	
  CERTIFICATE OF TENANT

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE 37

  	
  NAME OF BUILDING

  	
  97

  
	
   

  	
   

  	
   

  
	
  ARTICLE 38

  	
  MEMORANDUM OF LEASE

  	
  98

  
	
   

  	
   

  	
   

  
	
  ARTICLE 39

  	
  BROKERAGE

  	
  99

  
	
   

  	
   

  	
   

  
	
  ARTICLE 40

  	
  INVALIDITY OF ANY PROVISION

  	
  100

  
	
   

  	
   

  	
   

  
	
  ARTICLE 41

  	
  MISCELLANEOUS

  	
  101

  
	
   

  	
   

  	
   

  
	
  ARTICLE 42

  	
  RESTRICTIONS UPON USE

  	
  103

  
	
   

  	
   

  	
   

  
	
  ARTICLE 43

  	
  SUCCESSORS AND ASSIGNS

  	
  104

  
	
   

  	
   

  	
   

  
	
  ARTICLE 44

  	
  EXTENSION TERM

  	
  105

  
	
   

  	
   

  	
   

  
	
  ARTICLE 45

  	
  FAIR MARKET RENT DETERMINATION

  	
  107

  
	
   

  	
   

  	
   

  
	
  ARTICLE 46

  	
  SECURITY

  	
  110

  

 

 ii

 

	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
  Floor Plan

  	
  A-l

  
	
  EXHIBIT B

  	
  Approved List

  	
  B-1

  
	
  EXHIBIT C

  	
  Intentionally Deleted

  	
  C-l

  
	
  EXHIBIT D

  	
  Form of Operating Expense Escalation Statement

  	
  D-l

  
	
  EXHIBIT E

  	
  Example of Cleaning Cost Escalation

  	
  E-1

  
	
  EXHIBIT F

  	
  Form of Subordination, Non-Disturbance and Attornment
  Agreement

  	
  F-l

  
	
  EXHIBIT G

  	
  Certificate of Occupancy

  	
  G-1

  
	
  EXHIBIT H

  	
  Rules and Regulations

  	
  H-1

  
	
  EXHIBIT I

  	
  HVAC Specifications

  	
  I-1

  
	
  EXHIBIT J

  	
  Cleaning Specifications

  	
  J-1

  
	
  EXHIBIT K

  	
  Guaranty of Lease

  	
  K-l

  
	
  EXHIBIT L

  	
  Form of Letter of Credit

  	
  L-l

  

 

AGREEMENT OF LEASE made as of this 17th day of March,
1999 between 605 THIRD AVENUE LLC, a New York limited liability company with
its office at c/o FISHER BROTHERS, 299 Park Avenue, New York, New York 10171
(hereinafter referred to as “Landlord”) and FREDERIC R. HARRIS, INC., a New York corporation with its
office at 300 E. 42nd Street, New York, New York 10017 (hereinafter referred to
as “Tenant”).

W I T N E S S E T H:

Landlord hereby leases to Tenant, and Tenant hereby
hires from Landlord, the premises hereinafter described, in the building known
as 605 Third Avenue, New York, New York 10158 (hereinafter called the “Building”), for the term hereinafter stated, for the rents hereinafter
reserved and upon and subject to the conditions (including limitations,
restrictions and reservations) and covenants hereinafter provided. Each party
hereto hereby expressly covenants and agrees to observe and perform all of the
conditions and covenants herein contained on its part to be observed and
performed.

The premises hereby leased to Tenant are the entire
30th and 31st floors of the Building, as shown hatched on the floor plans
annexed hereto as Exhibit A. Said premises are hereinafter called
the “demisedpremises”.

The term of this Lease, for which the demised premises
are hereby leased, shall commence on the date set forth in Section 1.4 hereof,
provided, however, Tenant shall have the right to occupy the demised premises
on the date (hereinafter called the “Occupancy Date”) which shall be (i) the date on
which Landlord’s Work (as defined in Article 3) shall have been completed by
Landlord, provided Landlord gives Tenant no less than three (3) days’ prior
notice of the anticipated completion date of Landlord’s Work, and, provided
further, on such date of completion of Landlord’s Work, Landlord delivers the
demised premises to Tenant vacant, free of all occupancies and otherwise in the
condition required by this Lease, or (ii) the day Tenant, or anyone claiming by
or through Tenant, first occupies the demised premises for the normal conduct
of its business, whichever occurs earlier (the Occupancy Date being expected to
occur on or about September 1, 1999; provided, in no event shall the Occupancy
Date occur prior to September 1, 1999), and shall end on February 28, 2010 (which
ending date is hereinafter called the “Expiration Date”) or shall end on such earlier date
upon which said term may expire or be cancelled or terminated pursuant to any
of the conditions and covenants of this Lease or pursuant to law; provided,
however, if the Occupancy Date shall not occur by September 1, 1999, then the
Expiration Date shall be extended one (1) day for each day after September 1,
1999 that occurs

prior to the Occupancy Date. If the Occupancy Date shall be other than
the specific date set forth herein, then promptly following the Occupancy Date
the parties hereto (hereinafter sometimes referred to as “the parties”) shall enter into a supplementary
agreement in recordable form fixing the date of the Occupancy Date, but the
failure of Landlord and Tenant to execute such supplementary agreement shall
have no effect on Landlord’s and Tenant’s obligations hereunder. Tenant’s
occupancy of the demised premises from the Occupancy Date through the
Commencement Date shall be on all of the terms and conditions of this Lease,
except that Tenant shall have no obligation to pay Landlord fixed annual rent
or additional rent during such period of time.

If the Occupancy Date does not occur by March 1, 2000,
then Tenant shall have the right to terminate this Lease upon ten (10) days’
prior written notice to Landlord; provided, however, should Landlord deliver
possession of the demised premises to Tenant in the condition required by this
Lease during such ten (10) day period, then Tenant’s termination notice shall
be of no force and effect and such date of delivery shall be the Occupancy
Date. If Tenant should terminate this Lease as provided for in this paragraph,
then Tenant shall promptly pay to Landlord any amounts Landlord has paid to
Tenant pursuant to the immediately following paragraph; provided, however,
Tenant shall be entitled to retain any such amounts paid by Landlord to Tenant
to the extent Tenant can demonstrate to Landlord’s reasonable satisfaction that
Tenant incurred out-of-pocket costs related to this Lease or the entering into
of a lease by Tenant for substitute space due to Tenant’s termination of this
Lease (such costs to include, but not be limited to, legal, architectural and
engineering fees, the higher rent (if any) Tenant is required to pay for any
replacement space (determined on a per square foot basis) and the amount of any
hold-over rent Tenant was required to pay (on a per square foot basis) which is
greater than the amount of rent Tenant would have been required to pay (on a per
square foot basis) under this Lease after the Rent Commencement Date).

If the tenant currently occupying the demised premises
holds-over beyond the term of its lease (Landlord hereby represents to Tenant
that such lease has an expiration date of August 31, 1999), Landlord shall
promptly commence summary dispossess proceedings and diligently pursue the
eviction of such present tenant. Landlord agrees that if the rent being paid by
such holdover tenant during any such holdover period exceeds the rent to be paid
by Tenant hereunder (on a per square foot basis), then Landlord shall pay to
Tenant, with respect to each such day of delay, fifty percent (50%) of such
excess after deducting from such excess any reasonable attorneys’ fees
(including disbursements) and court costs Landlord incurs in its attempt to
evict such tenant from the demised premises and if such holdover shall continue
for more than four (4) months beyond such

 2
 

expiration date, then from and after such four (4) month date, Landlord
shall pay to Tenant for each day the greater of such fifty percent (50%) or an
amount equal to 1.5 multiplied by the amount of daily rent which would be
payable hereunder immediately following the Rent Commencement Date, until
Landlord delivers the demised premises to Tenant in the condition required
herein.

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

 3
 

ARTICLE 1

 

RENT

1.1. Tenant shall pay to Landlord a fixed annual rent
(hereinafter referred to as “fixed annual
rent”) as follows:

(a)                     ONE
MILLION SIX HUNDRED EIGHT THOUSAND FOUR HUNDRED FIFTY EIGHT and 00/100
($1,608,458) DOLLARS per annum for the period commencing on the Rent
Commencement Date and ending on the day immediately preceding the fifth (5th)
anniversary of the Rent Commencement Date; and

(b)                    ONE
MILLION SEVEN HUNDRED FIFTY EIGHT THOUSAND EIGHTY TWO and 00/100 ($1,758,082)
DOLLARS per annum for the period commencing on the fifth (5th) anniversary of
the Rent Commencement Date and ending on the Expiration Date.

Tenant agrees to pay the fixed annual rent in lawful
money of the United States of America, in equal monthly installments in advance
on the first day of each calendar month during said term, at the office of
Landlord or such other place in the United States of America as Landlord may
designate, without any setoff or deduction whatsoever, except such deduction as
may be occasioned by the occurrence of any event permitting or requiring a deduction
from or abatement of rent, as specifically set forth herein. Should the
obligation to pay fixed annual rent commence on any day other than on the first
day of a month, then the fixed annual rent for the unexpired portion of such
month shall be adjusted and prorated on a per diem basis based on a 360-day
year.

The first month’s installment of fixed annual rent due
under this Lease shall be paid by Tenant on August 1, 1999.

1.2. Tenant shall pay the fixed annual rent and
additional rent as above and as hereinafter provided, either by good and
sufficient check (subject to collection) drawn on a New York City bank which is
a member of the New York Clearing House or a successor thereto, or by wire
transfer of immediately available funds from any bank. All sums other than
fixed annual rent payable by Tenant hereunder shall be deemed additional rent
and payable on demand, unless other payment dates are hereinafter provided.

1.3. If Tenant shall not pay fixed annual rent or
additional rent within five (5) days after the same shall be due hereunder.
Tenant shall pay to Landlord a late charge at the Prime Rate (as hereinafter
defined), for the period from the date on which the fixed annual rent or
additional rent payment was due until the date of payment thereof.
Notwithstanding anything to the contrary contained in the immediately preceding
sentence, on

 4
 

the first occasion in any calendar year on which a late charge would be
due and payable hereunder, Tenant shall not be obligated to pay a late charge
unless Landlord shall have first given Tenant notice that the fixed annual rent
or additional rent in question is past due and Tenant shall have failed to pay
such sums due within five (5) days after receipt of such notice.

1.4. Notwithstanding the provisions of Section 1.1 of
this Lease, no fixed annual rent or additional rent shall be payable by Tenant
for the period (the “Abatement Period”) commencing on the Occupancy Date
and ending on February 29, 2000 (which ending date shall be extended one (1)
day for each day after September 1, 1999 that the Occupancy Date does not
occur). March 1, 2000 (or such other date immediately following the date on
which the Abatement Period ends in accordance with the immediately preceding
sentence) is herein sometimes called the “Rent Commencement Date”
and sometimes called the “Commencement Date”.

 5
 

ARTICLE 2

OCCUPANCY

2.1. The demised premises shall be used solely as and
for executive and general offices, and ancillary uses incidental thereto, and
for no other purpose.

 6
 

ARTICLE 3

PREPARATION
OF THE DEMISED PREMISES

3.1. (a) Tenant has examined the demised premises and
agrees to accept the same in their condition and state of repair existing as of
the date hereof (except for latent defects), and understands and agrees that
Landlord shall not be required to perform any work, supply any materials or
incur any expense to prepare the demised premises for Tenant’s occupancy,
except as set forth in this Article 3 and as otherwise may be specifically set
forth in this Lease.

(b) Landlord agrees that (i) Landlord will demolish
the existing tenant improvements in the demised premises in accordance with
Tenant’s plans and specifications and deliver the demised premises to Tenant
broom clean, vacant and free of all occupancies; (ii) Landlord will supply
Tenant with an ACP-5 form and remove asbestos-containing materials (“ACM”) therein, if any, at Landlord’s
cost, as required in order for Tenant to perform work therein in accordance
with Tenant’s approved final plans and specifications, in compliance with Local
Laws #76/1985 and any other applicable laws and legal requirements relating to
asbestos; and (iii) Landlord will “flash patch” all concrete floors to industry
standards (such demolition, “patching” and asbestos removal is hereinafter
called “Landlord’s Work”).

3.2. (a) Landlord shall allow Tenant a credit in the
amount of NINE HUNDRED THIRTY-FIVE THOUSAND ONE HUNDRED-FIFTY AND 00/100
($935,150) DOLLARS (hereinafter called the “Work Credit”). which credit shall be applied against the
cost and expense incurred by Tenant for the actual construction performed in
connection with Tenant’s initial alterations in the demised premises (“Tenant’s Work”) and the cost and
expense of moving, architectural, consulting, engineering, legal fees and other
similar fees in connection with Tenant’s Work and the negotiation and
preparation of this Lease performed after the date hereof in accordance with
the terms and provisions of this Lease, including Article 8 hereof. In the
event that such costs and expenses shall exceed the amount of the Work Credit,
Tenant shall be entirely responsible for such excess. Tenant agrees that the
Work Credit shall be used only for the cost of alterations to the demised
premises, the payment of moving expenses, architectural, consultant,
engineering, legal fees, fees associated with the negotiation and preparation
of this Lease and other similar fees, and for no other purposes. Any portion of
the Work Credit not used for such purposes shall be applied as a credit against
installments of fixed annual rent payable hereunder, which installments shall
be determined by Tenant. The Work Credit shall be payable to Tenant in
installments as Tenant’s Work progresses. At Tenant’s request, Landlord shall
disburse the Work Credit directly to Tenant’s contractors, vendors, architect.

 7
 

engineer, movers, attorneys or other consultants. Landlord shall pay to
Tenant installments of the Work Credit within thirty (30) days after Landlord’s
receipt of a written request for disbursement. If Tenant’s Work is performed
prior to or after the Commencement Date, then the Work Credit shall be payable
to Tenant pursuant to the provisions of this Section 3.2(a) prior to or after
the Commencement Date, respectively. If Tenant terminates this Lease prior to
the Commencement Date, Tenant shall promptly refund to Landlord any portion of
the Work Credit distributed by Landlord. If Landlord does not fund the Work
Credit as required herein, Tenant shall have the right to offset the amount of
the Work Credit not so funded by Landlord (plus interest thereon at the Prime
Rate) against payments of fixed annual rent due under this Lease.

(b) Tenant shall engage Plaza Construction Corp. (“Landlord’s Affiliated Contractor”) to
be the general contractor for Tenant’s Work; the fees of Landlord’s Affiliated
Contractor shall be commercially competitive. Such affiliated contractor shall
use a competitive bidding process, among those unaffiliated subcontractors
approved to perform work in the Building (except with regard to HVAC balancing
work for which there is only one (1) approved subcontractor, the fees of which
shall be commercially competitive) in selecting all subcontractors. Attached
hereto as Exhibit B is a
list of approved unaffiliated subcontractors as of the date hereof (the “Approved List”); Landlord acknowledges
that each of the subcontractors and mechanics set forth on such Approved List
are acceptable to Landlord in connection with performing Tenant’s Work.
Landlord hereby agrees that Landlord shall not unreasonably withhold, condition
or delay its consent to additional subcontractors and mechanics proposed by
Tenant which are not on the Approved List for the performance of Tenant’s Work.
At all times there shall be at least three (3) unaffiliated subcontractors or
mechanics listed under each category on the Approved List, except with respect
to HVAC balancing work for which there is only one (1). Other than with respect
to HVAC balancing work. Tenant shall be entitled to select at least three (3)
subcontractors or mechanics from the Approved List and from Exhibit C (or such
other subcontractors or mechanics who may be approved by Landlord as set forth
herein) from each category for the competitive bidding process and Tenant shall
be entitled to select the winning bid whether or not it is the lowest bid. All
bids submitted by subcontractors to Landlord’s Affiliated Contractor shall be
available for review, inspection, negotiation and approval by Tenant and its
representatives at any time including at the opening of all bids. Landlord
shall use its reasonable efforts to ensure that the fees and general conditions
costs of Landlord’s Affiliated Contractor shall be reasonably comparable with
the fees and general conditions costs charged by comparable general contractors
in Manhattan performing work in similar buildings. The parties hereby agree
that Tenant, in its sole

 8
 

discretion, may hereafter elect to have Landlord’s Affiliated
Contractor also perform alterations other than Tenant’s Work, in which event
Tenant and Landlord’s Affiliated Contractor shall enter into a construction
contract regarding Landlord’s Affiliated Contractor’s fees and general
conditions costs, as Landlord’s Affiliated Contractor and Tenant shall agree in
each instance. Tenant shall have the right to perform all engineering work in
connection with Tenant’s Work; provided, Tenant shall reimburse Landlord,
within thirty (30) days after Landlord’s demand, for any reasonable
out-of-pocket costs and expenses incurred by Landlord in connection with
Landlord’s review of such engineering work. Tenant shall have the right to
control and manage independently of Landlord’s Affiliated Contractor (but with
coordination by Landlord’s Affiliated Contractor) certain proprietary vendors
and subcontractors, such as technology/telecommunications equipment and cabling
(within the demised premises only), carpeting, window treatment and internal
security systems.

Tenant shall obtain Building Department sign-offs,
inspection certificates and any permits required to be issued by any governmental
entities having jurisdiction thereover promptly after Tenant’s Work has been
completed and shall promptly deliver copies thereof to Landlord. Landlord
agrees to cooperate with Tenant, without charge to Tenant, in connection with
Tenant’s efforts to obtain such sign-off inspection certificates and permits.

3.3. Landlord represents that the central air handling
units with perimeter induction units are in good working order. Landlord agrees
that on the Commencement Date, there will be a main vertical HVAC duct to the
demised premises, and Tenant shall be responsible for the distribution within
the demised premises. Landlord shall clean and bring to normal working order
all perimeter induction units as part of Landlord’s Work.

3.4. In accordance with Tenant’s timing needs for
connection to such access points. Landlord shall provide a reasonable number of
access points at a Class “E” (DGP) panel for Tenant’s hook-up located on the
30th floor of the Building. Landlord and Tenant shall cooperate with each other
so that Landlord meets such obligation to make available such access points.
Tenant, at its own cost and expense, shall have the Building’s Class “E” system
contractor connect Tenant’s life safety and Class “E” hook-ups to the base
building system, the fee for which shall be commercially competitive. Tenant
shall be solely responsible for compliance with Class “E” requirements within
the demised premises.

3.5. Landlord shall, at its cost and expense, be
responsible for complying with the existing rules under the

 9
 

Americans with Disabilities Act (“ADA”)
in the common areas of the Building.

3.6. Landlord shall be responsible for future asbestos
remediations, at Landlord’s expense, as such remediation is required by Legal
Requirements; provided, however, if such asbestos was introduced into the
demised premises by Tenant than such removal shall be at Tenant’s expense.

3.7. Landlord shall close off the stairways between
the 3lst and 32nd floors and between the 29th and 30th floors and slab over the
opening in each of the 30th and 31st floors to the same condition and strength
as the balance of such floors, at Landlord’s sole cost and expense, prior to the date
Tenant occupies the demised premises for the purposes of conducting its
business therein and Landlord shall perform such work in such a manner as will
not interfere with Tenant’s Work.

 10
 

ARTICLE 4

TAX
ESCALATION

4.1. Tenant shall pay to Landlord, as additional rent,
tax escalation in accordance with this Article 4:

(a) Definitions: For the purpose of this Article 4,
the following definitions shall apply:

(i) The term “base tax year” as hereinafter set forth for the
determination of real estate tax escalation shall mean the New York City real
estate tax year commencing July 1, 1999 and ending June 30, 2000.

(ii) The term “The Percentage,” for purposes of
computing tax escalation, shall mean 4.11 percent (4.11%). Landlord represents
to Tenant that The Percentage is the same percentage used in the “Tax
Escalation” article of the lease between Landlord and the current occupant of
the demised premises.

(iii) The term “the building project” shall mean the aggregate parcels of
land forming a single tax lot, on a portion of which are the improvements of
which the demised premises form a part, with all the improvements thereon.

(iv) The term “comparative year” shall mean the twelve (12) months
following the base tax year, and each subsequent period of twelve (12) months.

(v) The term “real estate taxes” shall mean the total of all taxes
and special or other assessments levied, assessed or imposed at any time by any
governmental authority upon or against the building project (but not any
additions thereto), 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 the building project to the extent that same shall be in
lieu of all or a portion of any of the aforesaid taxes or assessments, or
additions or increases thereof, upon or against the building project, provided,
however, the term “real estate taxes” shall not include any penalties or
other charges imposed on Landlord due to the late payment by Landlord of real
estate taxes (unless such late payment of real estate taxes is industry-wide
and due to an act of the taxing authority and not the result of Landlord’s
willful acts or omissions) other than interest or other charges payable with
respect to installments, assessments or penalties or other charges payable as a
result of Tenant’s failure to fully comply with Section 4.1(b)(i) below.

 11
 

The term “real estate taxes”
shall not include income taxes, inheritance taxes, gift taxes, real property
transfer taxes, profit taxes, excise taxes, franchise taxes, capital levies
taxes or any special assessment levied against property of Landlord other than
the building project (collectively, “Excluded
Taxes”). If, due to a future change in the method of taxation or
in the taxing authority, any Excluded Taxes (other than inheritance and gift
taxes) or other tax or governmental imposition, however designated, shall be
levied against Landlord in substitution or in lieu of, in whole or in part, for
the real estate taxes, or in lieu of additions to or increases of said real
estate taxes, then such Excluded Taxes (other than inheritance or gift taxes)
or other tax or governmental imposition shall be deemed to be included within
the definition of “real estate taxes” for the purposes hereof. As to
special assessments which are payable over a period of time extending beyond
the term of this Lease, only a pro rata portion thereof, covering the portion
of the term of this Lease unexpired at the time of the imposition of such
assessment, shall be included in “real estate taxes”.
If, by law, any assessment may be paid in installments, then, for the purposes
hereof (a) such assessment shall be deemed to have been payable in the maximum
number of installments permitted by law and (b) there shall be included in real
estate taxes, for each comparative year (and, if applicable, the base tax year)
in which such installments may be paid, the installments of such assessment so
becoming payable during such comparative year, together with interest, if any,
payable during such comparative year.

(vi) The phrase “real estate taxes payable during the
base tax year” shall
mean that amount obtained by multiplying (i) the assessed values applicable to
the building project which are in fact applied to the tax rate in determining
the amounts payable to the City of New York for the base tax year by (ii) the
tax rate applicable to the Borough of Manhattan for the base tax year.

(b) (i) In the event that the real estate taxes
payable for any comparative year shal1 exceed the amount of the real estate
taxes payable during the base tax year. Tenant shall pay to Landlord, as additional
rent for such comparative year, an amount equal to The Percentage of the
excess. Before or after the start of each comparative year, Landlord shall
furnish to Tenant a statement of the real estate taxes payable for such
comparative year, and a statement
of the real estate taxes payable during the base tax year. If the real estate
taxes payable for such comparative year exceed the real estate taxes payable
during the base tax year, additional rent for such comparative year, in an
amount equal to The Percentage of the excess, shall be due from Tenant to
Landlord, and such additional

 12
 

rent
shall be payable by Tenant to Landlord as follows: after Landlord has furnished
Tenant with the aforesaid statement, Tenant shall pay Landlord with the monthly
installments of rent due on June 1 and December 1 of each such comparative year
an amount equal to one-half (1⁄2) of the total sum of additional rent due from
Tenant to Landlord pursuant to such statement for such comparative year, until
such time as a new statement for a subsequent comparative year shall become
effective; provided, however, in no event shall Tenant be required to make the
scheduled real estate tax payments set forth herein on less than fifteen (15)
days prior notice of the amount of the payment then due. If, during the term of
this Lease, any such taxes are required to be paid, in full or in quarterly or
other installments, on any other date or dates than as presently required, then
Tenant’s tax escalation payment(s) shall be correspondingly accelerated so that
said payments are due at least thirty (30) days prior to the date proportionate
payments are due to the taxing authority. If a statement is furnished to Tenant
after the commencement of the comparative year in respect of which such
statement is rendered, Tenant shall, within fifteen  (15) days thereafter pay to Landlord an
amount equal to those installments or the total tax escalation payable as
provided in this paragraph.

(ii) Should the real estate taxes payable during the
base tax year be reduced by final determination of legal proceedings,
settlement or otherwise, then, the real estate taxes payable during the base
tax year shall be correspondingly revised, the additional rent theretofore paid
or payable hereunder for all comparative years shall be recomputed on the basis
of such reduction, and Tenant shall pay to Landlord as additional rent, within
fifteen (15) days after being billed therefore, any deficiency between the
amount of such additional  rent as
theretofore computed and the amount thereof due as the result of such
recomputations. Should the real estate taxes payable during the base tax year
be increased by such final determination of legal proceedings, settlement or
otherwise, then appropriate recomputation, adjustment and refund (pursuant to
Section 4.1(b) (iii) of this Lease) also shall be made.

(iii) If, after Tenant shall have made a payment of
additional rent under this subdivision (b), Landlord shall receive a refund of
any portion of the real estate taxes payable during any comparative year after
the base tax year on which such payment of additional rent shall have been
based, as a result of a reduction of such real estate taxes by final
determination of legal proceedings, settlement or otherwise, Landlord shall
within fifteen (15) days after receiving the refund pay to Tenant The
Percentage of the refund.

(iv) The statements of the real estate taxes to be
furnished by Landlord as provided above shall be certified by

 13
 

Landlord and shall
constitute a final determination as between Landlord and Tenant of the real
estate taxes for the periods represented thereby, unless Tenant within sixty
(60) days after they are furnished shall in writing challenge their accuracy or
their appropriateness. If Tenant shall dispute said statements, then pending
the resolution of such dispute Tenant shall pay the additional rent to Landlord
in accordance with the statements furnished by Landlord. Upon request by
Tenant, Landlord shall provide Tenant a copy of Landlord’s tax bill as supplied to
Landlord by any government authority.

(v) In no event shall the fixed annual rent under this
Lease be reduced by virtue of this Article 4.

(vi) If the Commencement Date is not the first day of
the first comparative year, then the additional rent due hereunder for such
first comparative year shall be a proportionate share of the said additional
rent for the entire comparative year, said proportionate share to be based upon
the length of time that the Lease term will be in existence during such first
comparative year. Upon the date of any expiration or termination of this Lease
(except termination because of Tenant’s default), whether the same be the date
hereinbefore set forth for the expiration of the term or any prior or
subsequent date, Tenant shall owe a proportionate share of said additional rent
for the comparative year during which such expiration or termination occurs.
The said proportionate share shall be based upon the length of time that this
Lease shall have been in existence during such comparative year. Landlord shall
promptly cause statements of said additional rent for that comparative year to
be prepared and furnished to Tenant. Landlord and Tenant shall thereupon make
appropriate adjustments (or an appropriate refund or payment if after the
Expiration Date or earlier termination of this Lease) of amounts then owing,
and any such amounts due (if to be paid and not credited) shall be paid by the
party owing such amount within thirty (30) days of said adjustment (subject to
subsections 4.1(b) (vii) and 4.1(b) (viii) below).

(vii) Tenant’s obligation to make the adjustments
referred to in subdivisions 4.1(b) (ii) and 4.1(b) (vi) above shall survive any
expiration or termination of this Lease for a period of two (2) years. Landlord’s
obligation to make the adjustments referred to in subdivisions 4.1(b) (ii) and
4.l(b) (vi) above shall survive any expiration or termination of this Lease for
the applicable statute of limitations.

(viii) Any delay or failure of Landlord in billing any
tax escalation herein above provided shall not constitute a waiver of or in any
way impair the continuing obligation of Tenant to pay such tax escalation
hereunder, provided, however, if Landlord should fail to render any statement
for real estate

 14
 

tax escalation within
three (3) years of the expiration of the comparative year relating thereto,
then, provided Tenant shall notify Landlord in writing that Landlord has failed
during such three (3) year period to render such statement to Tenant. Landlord
shall be deemed to have waived its right to collect any real estate tax
escalation for such comparative year unless Landlord shall render such
statement within sixty (60) days of receipt by Landlord of Tenant’s written
notification or unless Landlord can reasonably demonstrate to Tenant that any
such failure to render such statement within such sixty (60) day period is
attributable to the failure of the taxing authority to supply information
necessary for Landlord to prepare any such statement. From and after the
Expiration Date or earlier termination of this Lease, (x) the number “three (3)”
appearing in this subsection 4.l(b) (viii) shall be deemed to read “two (2)”,
and (y) Tenant shall not be obligated to provide any notice to Landlord of
Landlord’s failure to bill Tenant for real estate tax escalation as set forth
herein.

(ix) Tenant acknowledges that the
building project includes a garage building, an office building and the land on
which such buildings are situated and Landlord and Tenant agree that if
Landlord shall acquire any adjoining parcel(s) of land and/or if a change shall
occur in the assessed valuation of the building project as a result of a change
in the size of the parcel of land owned by Landlord, and/or by virtue of the
demolition and/or construction of substantial improvements on, or  additions to, that portion of the parcel of
land which is now occupied by a garage building or on any such parcel(s) that
are hereafter acquired by Landlord, there shall be equitable adjustments to The
Percentage, to the real estate taxes payable during the base tax year, and to
the real estate taxes payable for each comparative year subsequent to the
relevant event referred to herein, in order that Tenant shall not bear the
costs of any such improvements or additions, and so as to offset the impact of
such acquisition, changes and/or improvements.

(xi) Any dispute with respect to this Article 4 shall
be resolved by arbitration in accordance with the provisions of Article 33
hereof, which arbitration shall be by three (3) arbitrators each of whom shall
have at least ten (10) years’ experience in the management of major office
buildings in Manhattan.

 15

ARTICLE 5

EXPENSE ESCALATION

5.1.      Tenant
shall pay to Landlord, as additional rent, expense escalation in accordance
with this Article 5:

(a)       Definitions:
For the purpose of this Article 5, the following definitions shall apply:

(i)            The
term “Expense
Base Factor” shall
mean the amount of the Expenses for Landlord’s fiscal year commencing May 1,
1999 and ending April 30, 2000.

(ii)           The
term “the
building project” shall
mean the aggregate parcels of land forming a single tax lot, on a portion of
which are the improvements of which the demised premises form a part, with all
the improvements thereon.

(iii)          The
term “comparative year”
shall mean the twelve consecutive months (commencing on May 1 of each year)
which constitute the fiscal or calendar year (during which the term of this
Lease commences) utilized by Landlord for computing expense escalation
generally for other tenants of the Building and each subsequent period of
twelve months during which occurs any portion of the term of this Lease.
Notwithstanding anything to the contrary contained in the preceding sentence,
Landlord shall have the right to change the commencement date of each
comparative year, provided, in such event, there shall be an appropriate
adjustment to the calculation of amounts due under this Article 5 from Tenant
to Landlord, and, provided further, there shall be no increased economic impact
to Tenant by reason of such adjustment.

(iv)          The
term “The Percentage,” for
purposes of computing expense escalation, shall mean 4.11 percent (4.11%).
Landlord represents to Tenant that The Percentage is the same percentage used
in the “Expense Escalation” article of the lease between Landlord and the
current occupant of the demised premises.

(v)           The
term “Expenses” shall mean
the total of all the costs and expenses incurred or borne by Landlord with
respect to the operation and maintenance of the Building and the services
provided tenants therein including, but not limited to, the costs and expenses
incurred for and with respect to: steam and any other fuel; water rates and
sewer rents; air-conditioning, ventilation and heating (subject to adjustment
as hereinafter described); Building electric

 16
 

current”; metal, elevator cab, all interior and exterior cleaning and
window washing lobby and plazas maintenance and cleaning; elevators;
escalators; protection and security; lobby decoration and interior and exterior
landscape maintenance; repairs, replacements and improvements which are
appropriate for the continued operation of the Building as a first-class building;
maintenance; painting of non-tenant areas; fire, extended coverage, boiler and
machinery, sprinkler, apparatus, public liability and property damage, rental
and plate glass insurance and any insurance required by a mortgagee; supplies;
wages, salaries, disability benefits, pensions, hospitalization, retirement
plans and group insurance respecting employees of the Landlord up to and
including the building manager; uniforms and working clothes for such employees
and the cleaning thereof; expenses imposed on the Landlord pursuant to law or
to any collective bargaining agreement with respect to such employees; worker’s
compensation insurance, payroll, social security, unemployment and other
similar taxes with respect to such employees; the cost for a bookkeeper and for
an accountant; professional and consulting fees, including legal and auditing
fees; association fees or dues; the expenses, including payments to attorneys
and appraisers, incurred by Landlord in connection with any application or
proceeding wherein Landlord obtains or seeks to obtain reduction or refund of
the real estate taxes payable or paid upon or against the building project; an
annual fee, for management of the Building, equal to the amount included in
Expenses for the fiscal year ending April 30, 2000 (the “Base Management Fee”). The Base
Management Fee shall be increased for each comparative year subsequent to the
end of the first comparative year for which the Tenant pays additional rent
hereunder, by an amount equal to the percentage of the Base Management Fee that
(1) the Expenses (exclusive of such management fees) for the comparative year
involved bear to (2) the Expense Base Factor reduced by the Base Management
Fee. Landlord represents that the management fee and the manner in which it is
calculated for the fiscal year which

*                                 i.e.
The cost of Building electric current shall be deemed to mean the cost of all
electricity purchased for use in the Building other than that which is
redistributed to tenants in the Building; the parties agree that forty-five
percent (45%) of the Building’s payment to the public utility for the purchase
of electricity shall be deemed to be payment for Building electric current and
that, in the event there should be a change in the amount of tenanted areas to
which electricity is supplied, there will be adjustment to said forty-five
percent (45%) to reflect the impact of that change.

 17
 

commenced May 1, 1997 is as set forth
on the form of operating expense escalation statement for such fiscal year
which is annexed hereto as Exhibit D. The
fees for cleaning included in Expenses for each year (each, a “Determination Year”)occurring after April 30, 2000 and
including each comparative year during the term of this Lease, shall be
determined by multiplying (x) the fees for cleaning (the “Existing Cleaning Cost Amount”) for the
fiscal year immediately preceding the Determination Year (the “Prior Year”)by (y) the percentage increase in the Wage Rate (as
hereinafter defined) from the Prior Year to such Determination Year, and adding
such product to the Existing Cleaning Cost Amount. The fees for cleaning
included in Expenses for any comparative year (the “Cleaning Fee Amount”) shall be
increased from year to year in the same manner as set forth in the preceding sentence.
The fees for cleaning included in the Expense Base Factor shall be determined
using the same method as set forth herein to determine cleaning fees for each
comparative year. Annexed hereto as Exhibit E
is the method of calculation of the cleaning fee escalation for the
calendar year 1998 over and above the calendar year 1997. The term “Wage Rate”shall mean the minimum regular hourly wage rate (including
fringe benefits) for employment of porters in Class A office buildings from
time to time established by Agreement between The Realty Advisory Board on
Labor Relations, Inc. and Local 32B-32J of the Building Service Employees
International Union AFL-CIO (the “Union”)
or by the successors to either or both of them. If the Union or its successor
shall cease to exist or function, increases in fees for cleaning for purposes
of computing Expenses shall be based upon Landlord’s reasonable determination
of the then-standard practice for escalating cleaning fee charges in
first-class office buildings in the Borough of Manhattan that are comparable to
the Building, provided that if there is more than one standard practice,
Landlord shall select the standard practice that will put the parties, as
closely as possible, in the same economic position with respect to fees for
cleaning included in Expenses that the parties are in on the date of this
Lease.

Provided, however,
that the foregoing costs and expenses shall exclude or have deducted from them,
as the case may be:

(a)       leasing commissions or brokerage
commissions and the fees of any consultants in connection with the negotiation
of any space lease in the Building;

(b)       salaries and benefits for executives
above the grade of building manager;

 18
 

(c)       all expenditures for capital improvements
except (1) those which under generally applied real estate practice
(consistently applied) are expensed (i,e., it being understood that
Landlord may expense an item if Landlord can reasonably demonstrate that it
would be less expensive to replace such item in a given year than repair it in
the same year and therefore it would be less costly to Tenant in the applicable
comparative year) and (2) capital expenditures required by laws enacted after
the date of this Lease or a change enacted after the date of this Lease in a
law in effect on the date of this Lease (but then limited to such change in
law), in which case the annual amortization of the cost of the capital
expenditures permitted to be included as Expenses in accordance with this item
(2) shall be included in Expenses for the comparative year in which the costs
are incurred and subsequent comparative years, such annual amortization to be
calculated on a straight line basis over fifteen (15) years, with an interest
factor equal to the Prime Rate at the time of Landlord’s having incurred said
expenditure;

(d)       any charge for depreciation of the
Building or equipment (except to the extent depreciation is included under the
second unnumbered paragraph following this list of exclusions);

(e)       debt service on mortgages (i.e.,
interest and principal payments and other debt costs) and financing and
refinancing costs (and costs associated with such financing and refinancing) in
respect of any mortgage placed on the building project or any portion thereof;

(f)        “real estate taxes”, excess profit
taxes, franchise taxes or taxes payable by Landlord or assessed or imposed with
respect to the building project other than sales taxes or use taxes or similar
taxes imposed on items includible with Expenses (e.g., sales taxes on cleaning
service) or taxes specifically included in the definition of Expenses;

(g)       costs and expenses of owning and
operating the Building’s garage, other than real estate taxes (as defined in
Article 4 of this Lease) and, provided, however, the costs shall not be deemed
to exclude costs incurred in connection with equipment, facilities and systems
serving the Building which are located in the garage (with appropriate
allocation to the extent any of the same serve the Building and the garage);

(h)       costs incurred in performing work or
furnishing services to or for individual tenants (including Tenant) at such
tenant’s expense, to the extent that such work or service is in excess of any
work or service Landlord at its expense is obligated to furnish to or for
Tenant; costs of performing work or furnishing services for tenants other than
Tenant at Landlord’s expense, to the extent that such work or service is in

 19
 

excess of any
work or service Landlord is obligated to furnish to or for Tenant at Landlord’s
expense; if any work or service is performed or furnished by Landlord to or for
any tenant other than Tenant, at such tenant’s expense, then, but only to the
extent that Landlord is obligated to perform such work or furnish such service
to or for Tenant at Landlord’s expense, such work or service shall be deemed to
have been performed or furnished to or for such other tenant at Landlord’s
expense and shall therefore be included in Expenses; the purpose of this
paragraph is to put the cost of providing services to or performing work for
all other tenants in the building at the same level of services or work that
Tenant is receiving at Landlord’s expense during the base year and each
succeeding year;

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

(j)        any increase in insurance premiums for
the Building due to the specific acts or use of space by a tenant of the Building;

(k)       other costs and expenses otherwise
includible in Expenses, to the extent that Landlord is reimbursed from other
sources for such costs and expenses (excluding, however, any reimbursement from
Tenant pursuant to so-called escalation provisions in the nature of this
Article 5), provided that Tenant will only be credited for actual reimbursement
for actual costs incurred by Landlord, and Tenant will not be credited for any
profit above Landlord’s cost;

(l)        the cost of any addition of rentable
space to the Building after the date of this lease;

(m)      in the event any services or materials are
provided by any party related to Landlord (excluding management fees pursuant
to subsection 5.l (a) (v) and cleaning), the portion of the cost thereof which
is in excess of what the commercially competitive cost would have been absent
such relationship;

(n)       costs of designing and constructing
tenant improvements;

(o)       costs incurred by Landlord for the
benefit of any tenant or group of tenants in the Building and not provided to
tenants;

(p)       expenditures for or in connection with
ground rent or similar payments to a ground lessor;

 20
 

(q)       the cost of removing, encapsulating or
otherwise abating any asbestos or any other hazardous materials (provided such
hazardous materials are required under current law to be removed, encapsulated,
or otherwise abated) in the Building; and

(r)        the cost of the acquisition of any works
of fine art, including the cost of installing same, other than decorative
artwork customarily found in other similar first class office buildings located
in midtown Manhattan.

(s)       the cost of the design, construction,
renovation, redecorating or other preparation of tenant improvements for Tenant
or other tenants or prospective tenants of the Building (including design fees
for space planning and all third party fees and charges, permit, license and
inspection fees related thereto) and allowances therefor;

(t)        advertising and promotional expenses
incurred for the purpose of marketing space in the Building or otherwise
related to the building project;

(u)       rent value or rental for any property
manager’s offices in the Building;

(v)       legal, accounting or other professional
fees incurred in connection with negotiating, preparing or enforcing leases or
lease terms, amendments of leases, terminations of leases or extensions of
leases, proceedings against any tenant (including Tenant) relating to the
collection of rent or other sums due to Landlord from such tenant or any other
disputes with any tenant (including Tenant);

(w)      legal, auditing, accounting or other
professional fees not allocated to the operation or management of the building
project;

(x)        amounts received by Landlord through
proceeds of insurance to the extent they are compensation for sums previously
included in Expenses;

(y)       costs in connection with a sale of the
Building, including, without limitation, survey, legal fees and disbursements,
transfer taxes or stamps and appraisals, engineering and inspection reports
associated with the contemplated sale;

(z)        any costs and compensation paid to
clerks, attendants or other persons in commercial concessions operated by
Landlord for a profit;

 21
 

(aa)     the cost of installing, operating and
maintaining any specialty service such as an observatory, broadcasting facility,
luncheon club, or athletic or recreational club to the extent any such costs of
operating and maintaining such specialty facility are for services or items
which are not supplied to tenants generally in the Building as part of Expenses
and are unique to such specialty facility;

(bb)     payment of damages, attorneys’ fees and any
other amounts to any person seeking recovery for negligence or other torts
(including any tort claims relating to asbestos);

(cc)     the cost of any repairs, alterations,
additions, improvements or replacements made to rectify, remedy or correct any
structural or other defect in the original design, construction materials,
installations or workmanship of the Building;

(dd)     damages and repairs necessitated by the
negligence or willful misconduct of Landlord or Landlord’s employees,
contractors or agents;

(ee)     costs incurred due to violations of Legal
Requirements by Landlord in excess of $10,000 per fiscal year on an aggregate
basis for the Building.

(ff)       Landlord’s general corporate overhead,
including without limitation, the cost of Landlord’s general corporate
accounting and the cost of preparation of Landlord’s income tax or information
returns;

(gg)     any tenant improvement allowance given to
any tenant (including Tenant) whether given by contribution or credit against
rent or otherwise, and any abatements or credits to rent;

(hh)     any rental concessions to, or lease
buy-outs of, Tenant or any other tenant in the Building;

(ii)       the costs, expenses and fees of any asset
manager or investment advisor representing Landlord or any partner or any other
constituent member of Landlord;

(jj)       costs arising from Landlord’s charitable
or political contributions and costs of real estate association dues and
licensing fees (except those real estate association dues and licensing fees
appropriately allocated to the building project);

(kk)     any amounts payable by Landlord by way of
indemnity or for damages or which constitutes a fine, interest, or penalty,
including interest or penalties for any late payments of operating costs
(unless resulting directly from Tenant’s late payment of fixed annual rent or
additional rent);

 22
 

(ll)       the cost of overtime or other expense to
Landlord in curing Landlord’s defaults;

(mm)   the cost of common area compliance with the ADA
(as same exists onthe date
hereof).

(nn)     costs incurred due to violations by any
tenant (including Tenant) in the Building, of the terms and conditions of any
lease, and penalties or interest for late payment of any obligation of Landlord
(unless such penalties or interest result from Tenant’s late payment of fixed
annual rent or additional rent).

Expenses shall be net
only and for that purpose shall be deemed reduced by the amount of all
reimbursements, recoupments, payments, discounts, credits, reductions,
allowances or the like actually received by Landlord in connection with
Expenses and Tenant will not be credited for any profit above Landlord’s cost;
provided, however, that Landlord may include in Expenses the reasonable and
actual costs and expenses, if any, incurred by Landlord in obtaining such
reimbursements, recoupments, payments, discounts, credits, reductions,
allowances or the like.

If Landlord shall
purchase any item of capital equipment or make any capital expenditure designed
to result in savings or reductions in Expenses, then the costs for same shall
be included in Expenses. The costs of capital equipment or capital expenditures
are so to be included in Expenses for the comparative year in which the costs
are incurred and subsequent comparative years, on a straight line basis, to the
extent that such items are amortized over such period of time as reasonably can
be estimated as the time in which such savings or reductions in Expenses are
expected to equal Landlord’s costs for such capital equipment or capital
expenditure, with an interest factor equal to the Prime Rate at the time of
Landlord’s having incurred said costs. If Landlord shall lease any such item of
capital equipment designed to result in savings or reductions in Expenses, then
the rentals and other costs paid pursuant to such leasing shall be included in
Expenses for the comparative year in which they were incurred. If requested by
Tenant, Landlord shall furnish to Tenant copies of any reports prepared for
Landlord supporting Landlord’s determination that a capital expenditure will
result in a savings or reduction of Expenses.

If during all or part
of any comparative year, Landlord shall not furnish any particular item(s) of
work or service (which would constitute an expense hereunder) to portions of
the Building, due to the fact that such portions are not occupied or leased, or
because such item of work or service is not required or desired by the tenant
of such portion, or such tenant is

 23
 

itself obtaining and
providing such item of work or service, or for other reasons, then, for the
purposes of computing the additional rent payable hereunder, the amount of the
expenses for such item for such period shall be increased by an amount equal to
the additional operating and maintenance expenses which would reasonably have
been incurred during such period by Landlord if it had at its own expense
furnished such item of work or services to such portion of the Building.

(b)  (i)  If
the Expenses for any comparative year shall be greater than the Expense Base
Factor, Tenant shall pay to Landlord, as additional rent for such comparative
year, in the manner hereinafter provided, an amount equal to The Percentage of
the excess of the Expenses for such comparative year over the Expense Base Factor
(such amount being hereinafter called the “Expense
Payment”). Within a reasonable time following the end of the
year ending April 30, 2000, Landlord shall submit to Tenant a statement,
certified by Landlord, setting forth the Expense Base Factor; Tenant hereby
acknowledges that Tenant shall not have the right to dispute such statement.

Following the
expiration of each comparative year and after receipt thereof from Landlord’s
independent certified public accountant, Landlord shall submit to Tenant a statement,
certified by Landlord, setting forth the Expenses for the preceding comparative
year and the Expense Payment, if any, due to Landlord from Tenant for such
comparative year. If such statement shows an Expense Payment due from Tenant to
Landlord with respect to the preceding comparative year then (i) Tenant shall
make payment of any unpaid portion thereof within thirty (30) days after
receipt of such statement; and (ii) Tenant shall also pay to Landlord, as
additional rent, within thirty (30) days after receipt of such statement, an
amount equal to the product obtained by multiplying the total Expense Payment
for the preceding comparative year by a fraction, the denominator of which
shall be 12 and the numerator of which shall be the number of months of the
current comparative year which shall have elapsed prior to the first day of the
month immediately following the rendition of such statement; and (iii) Tenant
shall also pay to Landlord, as additional rent, commencing as of the first day
of the month immediately following the rendition of such statement and on the
first day of each month thereafter until a new statement is rendered, l/12th of
the total Expense Payment for the preceding comparative year. The aforesaid
monthly payments based on the total Expense Payment for the preceding
comparative year may be adjusted to reflect, if Landlord can reasonably so
estimate, known increases in rates, for the current comparative year,
applicable to the categories involved in computing Expenses, whenever such increases
become known prior to or during such current comparative year. The payments
required to be made under (ii) and (iii) above shall be credited (or refunded
if after the Expiration Date or earlier termination of

 24
 

this Lease) toward the Expense Payment due
from Tenant for the then current comparative year, subject to adjustment as and
when the statement for such current comparative year is rendered by Landlord.

(ii)       The statements of the Expenses to be
furnished by Landlord as provided above shall be certified by Landlord, and
shall be prepared in reasonable detail (with at least the categories set forth
in Exhibit D annexed hereto) for
the Landlord by an independent certified public accountant. Wherever the
calculation of Expenses require any credit or adjustment with respect to any
cost or expense, the independent certified public accountant who prepares the
statement (who may be the independent certified public accountant now or then
employed by Landlord for the audit of its accounts) shall determine the
additional cost or expense incurred by Landlord, or the amount saved if such is
the case, with respect to any item of work or service and, to the extent
necessary, said accountant may rely on allocations and estimates made by
Landlord’s management. The statements thus furnished to Tenant shall constitute
a final determination as between Landlord and Tenant of the Expenses for the
periods represented thereby, unless Tenant within six (6) months after they are
furnished shall give a notice to Landlord that it disputes their accuracy or
their appropriateness. Pending the resolution of such dispute, Tenant shall pay
the additional rent to Landlord in accordance with the statements furnished by
Landlord. After payment of said additional rent, Tenant shall have the right,
during reasonable business hours and upon not less than five (5) business days’
prior written notice to Landlord, to examine Landlord’s books and records with
respect to the foregoing, provided such examination is commenced within thirty
(30) days after Tenant notifies Landlord of its dispute, and concluded within a
reasonable time thereafter for the statement in question. Landlord shall pay
the reasonable out-of-pocket cost of Tenant’s audit of Landlord’s books and
records if Tenant’s inspection of Landlord’s books and records indicates that
Tenant shall have made an over payment of Expenses of at least five (5%)
percent. Landlord agrees to make its books and records available for review by
Tenant in Manhattan during Landlord’s normal business hours, on a continuous
basis, throughout the term of this Lease.

Notwithstanding
anything contained herein to the contrary, Landlord and Tenant hereby agree
that if a statement for any comparative year shows that a mathematical mistake
was made in calculating the Expense Payment for such comparative year, then,
irrespective of when the discovery of such mistake occurs, Landlord shall
correct such statement(s) to reflect the proper amount of the Expense Payment
and Landlord or Tenant (as the case may be) shall make payment to the other for
any amounts owed within fifteen (15) days of the correction of such
mathematical mistake.

 25
 

Any such dispute as
to said statement shall be resolved by arbitration in accordance with the
provisions of Article 33 hereof, which arbitration shall be by three (3)
arbitrators each of whom shall have at least ten (10) years’ experience in the
matter in dispute.

(iii)      In no event shall the fixed annual rent
under this Lease be reduced by virtue of this Article 5.

(iv)      If the Commencement Date is not the first
day of the first comparative year, then the additional rent due hereunder for
such first comparative year shall be a proportionate share of said additional
rent for the entire comparative year, said proportionate share to be based upon
the length of time that the Lease term will be in existence during such first
comparative year. Upon the date of any expiration or termination of this Lease
(except termination because of Tenant’s default) whether the same be the date
hereinabove set forth for the expiration of the term, or any prior or
subsequent date, Tenant shall owe a proportionate share of said additional rent
for the comparative year during which such expiration or termination occurs.
The said proportionate share shall be based upon the length of time that this
Lease shall have been in existence during such comparative year. Landlord
shall, as soon as reasonably practicable, cause statements of the Expenses for
that comparative year to be prepared and furnished to Tenant. Landlord and
Tenant shall thereupon make appropriate adjustments (or an appropriate refund
or payment if after the Expiration Date or earlier termination of this Lease)
of amounts then owing and any such amounts due (if to be paid and not credited)
shall be paid by the party owing such amount within thirty (30) days after said
adjustment (subject to subsections 5.1(b) (v) and 5.1(b) (vi) below).

(v)       Landlord’s and Tenant’s obligation to
make the adjustments referred to in subdivisions 5.l(b)(i), (ii) and (iv) hereof
shall survive any expiration or termination of this Lease for a period of two
(2) years.

(vi)      Any delay or failure of Landlord in
billing any operating expense escalation hereinabove provided shall not
constitute a waiver of or in any way impair the continuing obligation of Tenant
to pay such operating expense escalation hereunder, provided, however, if
Landlord should fail to render any statement for operating expense escalation
within three (3) years of the expiration of the comparative year relating
thereto then, provided Tenant shall notify Landlord in writing that Landlord
has failed during such three (3) year period to render such statement to
Tenant, Landlord shall be deemed to have waived its right to collect any
operating expense escalation for such comparative year unless Landlord shall
render such statement within sixty (60) days of receipt by Landlord of Tenant’s
written

 26
 

notification that Tenant has not received any
statement for operating expense escalation within such three (3) year period.
From and after the Expiration Date or earlier termination of this Lease, (x)
the number “three (3)” appearing in this subsection 5.l(b) (vi) shall be deemed
to read “two (2)”, and (y) Tenant shall not be obligated to provide any notice
to Landlord of Landlord’s failure to bill Tenant for operating expense
escalation as set forth herein.

 27
 

ARTICLE 6

INTENTIONALLY DELETED

 28
 

ARTICLE 7

ELECTRICITY

7.1.      Landlord shall furnish to Tenant the
electric energy which Tenant requires in the demised premises through the
presently installed electrical facilities for Tenant’s reasonable use in the
demised premises, subject to the provisions of Section 7.5(a) hereof, for
lighting, customary office equipment, computers, market data systems,
supplemental HVAC and the usual small business machines, including Xerox or
other copying machines. Subject to the provisions of Section 7.5(a) of this
Lease, Landlord shall not in any way be liable or responsible to Tenant for any
loss or damage or expense which Tenant may sustain or incur if either the
quantity or character of electric service is changed or is no longer available
or suitable for Tenant’s requirements, unless such loss or damage is due to the
negligence or willful misconduct of Landlord.

7.2.      (a) Landlord shall, at or about the date
Tenant occupies the demised premises for the conduct of its business, at
Landlord’s expense (which shall not be included as an Expense in any year),
install a sufficient number of good-quality check meters and the equipment
ancillary thereto for each floor of the demised premises (hereinafter called
the “Cheek Meters”)to (i) measure and record and provide
printouts of the measurement of the coincident demand and consumption of each
Check Meter in the demised premises of electric current during each month of
each calendar year occurring during the term of this Lease and (ii) operate
such meters to ascertain Tenant’s consumption of kilowatt hours, by time of
day, if applicable (“KWH”)
and demand in kilowatts (“KW”)
for each month. The Check Meters shall be connected so as to read the totalized
demand of the demised premises. Landlord shall maintain and keep the Check
Meters in good repair (including replacement, if necessary), working order and
condition during the term of this Lease. All costs and expenses of reading,
maintaining, calibrating and repairing the Check Meters shall be paid by
Landlord (which costs and expenses of maintaining and repairing the Check
Meters are includible by Landlord in Expenses, but which costs and expenses of
reading the Check Meters shall not be includible by Landlord in Expenses).
During any period that a Check Meter is non-operational or where such Check
Meter(s) have not yet been installed after the Commencement Date, the
Electricity Additional Rent (as hereinafter defined) attributable to such Check
Meter(s) shall be an amount reasonably estimated by Landlord’s electrical
consultant based upon the historical readings previously or thereafter received
by Landlord from such non-operational Check Meter(s); such estimated amount
shall be subject to Tenant’s right to dispute such amount pursuant to Section
7.3(b) below. During the period of construction of Tenant’s Work and prior to
installation of the Check Meters, Tenant shall pay at the rate of

 29
 

$0.50 per
square foot per annum for electricity in lieu of paying any of the other
charges set forth herein for electricity during such period.

(b)           Tenant shall pay Landlord, as
additionalrent, for the
furnishing of electricity to the demised premises as set forth herein an amount
(“Electricity Additional Rent”)equal to Landlord1s cost, as if
billed by the electric utility or other provider (as the case may be) supplying
the Building, to furnish electricity to the demised premises (herein called “Landlord’s Cost”) for each calendar
month. Landlord’s Cost shall be determined by applying the KWH and KW to the
rates pursuant to which Landlord purchases electric current for the Building
during the particular calendar month, including therein any taxes, fuel
adjustment charges, surcharges, demand charges, energy charges, time- of -day
charges, rate adjustment charges or other impositions of any nature payable by
Landlord (other than interest or penalties on late payments) and adding thereto
a five (5%) percent charge to compensate Landlord for any transmission loss in
transmitting the electric energy from its source in the Building to the demised
premises and other administrative expenses (including, but not limited to,
costs incurred for reading the Check Meters, preparing the statement described
in Section 7.3(a) below and billing Tenant) (“Administrative Fee”).If
consumption or demand is billed at different rates depending on different
subdivisions or categories of the rate schedule, then Tenant’s KWH consumption
and KW demand shall be billed at Landlord’s Cost per KW or KWH (as the case may
be) for such subdivision or category (e.g., KWH consumption is currently billed
at different rates depending on the time of day of consumption and accordingly
Tenant’s KWH’s shall be applied separately to the rates applicable to the
period in which each KWH of Tenant’s consumption was consumed). If the rates
pursuant to which Landlord purchases electricity for the Building should change
so that the application of the monthly KWH and KW to such rates (together with
any taxes, fuel adjustment charges, surcharges, demand charges, energy charges,
time-of-day charges, rate adjustment charges, or other impositions) shall not
reflect Landlord’s actual cost of furnishing such KW and KWH then the
calculation of Landlord’s Cost shall be appropriately revised so that Landlord’s
Cost shall reflect Landlord’s actual cost of furnishing electric current to the
demised premises (e.g., if KWH consumption shall be billed at different rates
depending on the volume of KWH consumed, then Tenant’s KWH consumption shall be
billed at Landlord’s Cost per KWH in order that the benefit of any volume
discount for KWH consumption shall be applied to Tenant’s KWH consumption).

7.3.      (a) Following the expiration of each
calendar month, Landlord shall submit to Tenant a statement setting forth in
reasonable detail the Electricity Additional Rent for such month together with
copies of the Check Meter printouts showing

 30
 

the KW and KWH recorded during the
applicable month and copies of the public utility rate schedule (or any other
provider’s rate schedule, as the case may be) pursuant to which Landlord is
then purchasing electricity for the Building. Tenant shall pay the amount of
Electricity Additional Rent shown on the statement (which amount shall be equal
to Landlord’s Cost for such month) within thirty (30) days after receipt of
such statement.

(b)       The determination of the Electricity
Additional Rent by Landlord shall be binding and conclusive on Landlord and on
Tenant from and after the delivery of copies of such determination (and the
back-up documentation required by Section 7.3(a) hereof) to Landlord and
Tenant, unless within one hundred eighty (180) days after the delivery of
such copies, Tenant disputes such determination. Upon Tenant’s request,
Landlord shall furnish to Tenant copies of all bills for the relevant period
from the public utility company furnishing electricity to the Building. If
Tenant disputes the determination of Landlord, Tenant shall, at Tenant’s own
expense, obtain from a reputable, independent electrical consultant its
determination of the amount of the Electricity Additional Rent, in accordance
with the provisions of this Article 7. Tenant and Landlord then shall seek to
agree on the Electricity Additional Rent. If they cannot agree, they shall
choose a reputable independent electrical consultant (who shall not be or have
been employed by or retained on any basis, within the last two (2) years by
either Landlord or Tenant, or any affiliate of Landlord or Tenant) whose cost
shall be shared equally by Landlord and Tenant, to make a similar determination
of the Electricity Additional Rent, which determination shall be limited to
verification of the relevant Check Meter readings, the rates of the public
utility (or other provider servicing the Building) for the applicable period
and the accuracy of the computation of the Electricity Additional Rent being
contested, and if so limited, the determination of the Electricity Additional
Rent change by such third electrical consultant shall be controlling. If
Landlord and Tenant cannot agree on such consultant, within ten (10) days, then
either party may apply to the Supreme Court in the County of New York for the
appointment of such consultant. However, pending such determination, Tenant,
without prejudice to Tenant’s rights, shall pay to Landlord the amount of
Electricity Additional Rent as determined by Landlord. If the resolution of any
such dispute shall include a determination that Tenant shall have overpaid any
Electricity Additional Rent, such overpayment (together with interest thereon
at the Prime Rate calculated from the date of the overpayment to the date the
overpayment is credited or refunded to Tenant) shall be credited against the
next installment of fixed annual rent due under Article 1 hereof and if the
amount of the credit exceeds the amount of the next installment of fixed annual
rent due under Article 1, Landlord shall refund the amount of any such
overpayment (together with such interest) in excess of the next installment of
fixed annual

 31
 

rent to Tenant. If the resolution of
any such dispute shall include a determination that Tenant has underpaid
Electricity Additional Rent, then Tenant shall pay to Landlord the amount of
any such underpayment together with interest thereon at the Prime Rate
calculated from the date such underpayment should have been paid by Tenant to
the date such amount is actually paid by Tenant to Landlord.

7.4.      Landlord reserves the right to discontinue
furnishing electric energy to Tenant at any time upon sixty (60) days’ written
notice to Tenant, and from and after the effective date of such termination,
Landlord shall no longer be obligated to furnish Tenant with electric energy,
provided, however, that such termination date may be extended for a time
reasonably necessary for Tenant to make arrangements to obtain electric service
directly from the public utility company or other provider servicing the
Building. Landlord shall not discontinue services on a voluntary basis, unless
Landlord discontinues services to substantially all of the other tenants in the
Building. If Landlord exercises such right of termination, this Lease shall
remain unaffected thereby and shall continue in full force and effect; and
thereafter Tenant shall diligently arrange to obtain electric service directly
from the public utility company servicing the Building, and may utilize the
then existing electric feeders, risers and wiring serving the demised premises
to the extent available and safely capable of being used for such purpose and
only to the extent of Tenant’s then authorized connected load. If Landlord
shall discontinue service on a voluntary basis, then Landlord shall reimburse
Tenant for all reasonable out-of-pocket costs incurred by Tenant in connection
with Tenant’s arrangements to obtain electric service directly from the public
utility company (or other provider) servicing the Building. If Landlord shall
discontinue such service on an involuntary basis (e.g., discontinuance required
by law), then Landlord and Tenant shall equally share such reasonable
out-of-pocket costs incurred by Tenant in connection with Tenant’s arrangements
to obtain electric service directly from the public utility company (or other
provider) servicing the Building, with Tenant being responsible for its share
on a straight line basis (amortized over a period of twenty (20) years) payable
over the remaining term of the Lease. Other than as set forth herein, Landlord
shall be obligated to pay no part of any cost required for Tenant’s direct
electric service.

7.5.      (a) Landlord agrees that, at all
times during the term of this Lease, the risers, feeders, transformers, panels
and wiring installed in the Building by Landlord will be sufficient to permit a
demand electrical load in the demised premises of six (6) watts (volt-amperes)
per useable square foot of the demised premises excluding the Building HVAC
systems; it being agreed that Landlord shall provide such six (6) watts
(volt-amperes) to the
demised premises and that Tenant may

 32
 

distribute such six (6) watts
(volt-amperes) among the demised premises as Tenant may reasonably require,
subject to Landlord’s approval, which approval shall not be unreasonably
withheld, conditioned or delayed. Tenant covenants and agrees that in no event
shall its use of electric current in the demised premises exceed six (6) watts
(volts-amperes) of demand electric load per useable square foot of the demised
premises or any increased demand load as may be available after the
installation of additional risers, feeders and other equipment, if permitted,
pursuant to the provisions of this Section 7.5, and any breach by Tenant of
this covenant shall be deemed a material breach of this Lease. Any additional
risers, feeders or other proper or necessary equipment to supply Tenant’s
electrical requirements in excess of six (6) watts (volt-amperes) of demand
electric load per useable square foot, upon written request of Tenant, will be
installed by Landlord, at the sole cost and expense of Tenant if, in Landlord’s
sole judgment, the same are necessary and will not cause permanent damage or
injury to the Building or the demised premises, or cause or create a dangerous
or hazardous condition or entail excessive or unreasonable alterations, repair
or expense or interfere with or disturb other tenants or occupants of the
Building. Landlord shall install at Tenant’s expense any additional Check
Meters which may be necessary to measure Tenant’s demand and consumption of
electric current by reason of the installation of any such additional risers,
feeders or other electrical equipment required as a result of Tenant’s
electrical usage exceeding the level of electricity Landlord is obligated to
provide hereunder.

(b)       At Landlord’s option, Tenant shall
purchase from Landlord or Landlord’s agent all lighting tubes, lamps, bulbs and
ballasts used in the demised premises and Tenant shall pay Landlord’s
reasonable charges for providing and installing same, on demand, as additional
rent; provided that the foregoing shall not apply to any of such items used or
installed in connection with Tenant’s Work.

7.6.      In no event shall the fixed annual rent
under this Lease be reduced by virtue of this Article 7, except by reason of
any credit granted pursuant to the provisions of Section 7.3(b) hereof for an
overpayment of any Electricity Additional Rent or as provided in Section 7.4 or
7.8 hereof.

7.7.      It is the intention of Landlord that
Tenant shall be required pursuant to this Article 7 to pay only the actual cost
and expense incurred by Landlord in connection with furnishing electrical power
to the demised premises plus the Administrative Fee, it being understood and
agreed that the charges to Tenant under this Article 7 are in no instance
intended to include any profit or premium payable to Landlord for providing
such electrical service other than the Administrative Fee.

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7.8.      In the
event that the installation of Check Meters and the utilization of the same to
determine the Electricity Additional Rent shall be determined by the public utility
company serving the Building, the Public Service Commission (or any successor
thereto) or in a non-appealable judicial determination obtained by John Wiley
& Sons., Inc. (or any successor thereto or assignee of its lease) to be
submetering of electricity (and Landlord agrees that it shall not voluntarily
seek such a determination) or if such number of the Check Meters shall become
non-operational such that the intended purpose of this Article 7 in respect of
the computation of the Electrical Additional Rent cannot be fulfilled by reason
of the time period required to effectuate such repair or replacement of such
Check Meter, the parties agree that for the purposes of computing the
Electricity Additional Rent, Landlord will from time to time make surveys in
the demised premises (or on such floors on which the Check Meters are not
functioning) covering the equipment and fixtures therein and the use of current
thereof, and the Tenant’s KW demand and KWH consumption of electricity in the
demised premises (or on such floors on which the Check Meters are not
functioning, as the case may be) shall be determined in accordance with such
surveys in lieu of Check Meters. Tenant shall also have the right to initiate
surveys by a reputable, electrical consultant in the demised premises covering
the equipment and fixtures therein in the use of current thereof and the Tenant’s
KW demand and KWH of consumption of electricity in the demised premises (or on
such floors on which the Check Meters are not functioning, as the case may be)
shall be determined in accordance with such survey. Landlord and Tenant agree
that any survey performed pursuant to this Section 7.8 shall be performed in a
manner designed to measure Tenant’s KW demand and KWH consumption of
electricity as accurately as could be measured by Check Meters, it being
intended that any such survey shall be a reflection of actual facts and shall
not include any assumptions. Further, the computation of the Electricity
Additional Rent shall be based on Landlord’s Cost, as computed pursuant to
Section 7.2(b) hereof, as applied to Tenant’s KWH consumption and KW demand.
Landlord and Tenant further agree that if the same is not prohibited by Legal
Requirements (as hereinafter defined) or any non-appealable judicial determination
obtained by John Wiley & Sons, Inc. (or any successor thereto or assignee
of its lease) the surveys performed pursuant to this Section 7.8 may be
verified by readings of the Check Meters. The determination of the Electricity
Additional Rent in accordance with any survey shall be binding and conclusive
on Landlord and Tenant, from and after the delivery of copies of such
determination to Landlord and Tenant, unless within one hundred eighty (180)
days after the delivery of such copies, the party not causing the survey to be
performed notifies the other that it disputes such determination. If such other
party disputes the determination, it shall, at its own expense, obtain from a
reputable electrical consultant its

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own survey in
Che demised premises (or on such floors on which the Check Meters are not
functioning) covering the equipment and fixtures therein and the use thereof,
and the Tenant’s KW demand and KWH consumption of electricity in the demised
premises (or on such floors on which the Check Meters are not functioning, as
the case may be), and a determination of the Electricity Additional Rent in
accordance with the provisions of this Article 7. Landlord and Tenant’s
consultant then shall seek to agree on finding of such determination of the Electricity
Additional Rent. If they cannot agree, they shall choose a third reputable,
independent electrical consultant who shall not be employed by or have been
retained on an independent consulting basis within the last two years by,
either Landlord or Tenant, or any affiliate of Landlord or Tenant, whose cost
shall be shared equally by Landlord and Tenant, to make a similar survey, and
the determination of such Electricity Additional Rent by such third electrical
consultant shall if performed in accordance with the provisions of this Section
7.8, be binding on Landlord and Tenant. If they cannot agree on the selection
of such third consultant, within ten (10) days from the date either electrical
consultant shall first give notice to the other of its choice of such third
consultant, then either party may apply to the Supreme Court in New York County
for the appointment of such third electrical consultant. However, pending the
determination of such third electrical consultant or the agreement of Landlord
and Tenant’s electrical consultant, Tenant shall, without prejudice to Tenant’s
rights, pay to Landlord the amount of the Electricity Additional Rent as
determined by Landlord. If the resolution of any such dispute by the third
electrical consultant or by agreement of Landlord and Tenant’s electrical
consultants shall include a determination that Tenant shall have overpaid any
Electricity Additional Rent, such overpayment {together with interest thereon
at the Prime Rate calculated from the date of the overpayment to the date the
overpayment is credited or refunded to Tenant) shall be credited against the
next installment of fixed annual rent due under Article 1 hereof and if the
amount of the credit exceeds the amount of the next installment of fixed annual
rent due under Article 1, Landlord shall refund the amount of any such
overpayment (together with such interest) to Tenant. If the resolution of any
such dispute shall include a determination that Tenant has underpaid
Electricity Additional Rent, then Tenant shall pay to Landlord the amount of
any such underpayment, together with interest thereon at the Prime Rate
calculated from the date such underpayment should have been paid by Tenant to
the date such amount is actually paid by Tenant to Landlord.

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ARTICLE 8

ALTERATIONS AND
INSTALLATIONS

8.1.           Tenant shall make no alterations,
installations, additions or improvements in or to the demised premises without
Landlord’s prior written consent. All such work shall be done only by
contractors or mechanics on the Approved List or as otherwise first approved by
Landlord in accordance with Section 3.2(b) hereof. All such work, alterations,
installations, additions and improvements shall be done at Tenant’s sole
expense and at such times and in such manner as Landlord may from time to time
designate.

Landlord
will not unreasonably withhold or delay its consent to requests for
nonstructural alterations, additions and improvements (provided they will not
affect the outside of the Building or adversely affect its structure, or the
proper functioning of its electrical, HVAC, plumbing or mechanical systems).

Landlord’s
consent shall not be required for decorations within, or decorative alterations
to, the demised premises (including carpeting or painting of the demised premises)
which do not require Building Department sign offs, inspection certificates or
permits required to be issued by any governmental entity having jurisdiction
thereover and which are not visible from outside of the demised premises
(otherwise Landlord’s consent shall be required as set forth in this Article
8), provided that Tenant shall give Landlord written notice thereof prior to
the installation of such decorations within, or the making of such decorative
alterations to, the demised premises.

Tenant
shall submit to Landlord, plans andspecifications for all alterations, installations, additions or
improvements requiring Landlord’s prior approval. Landlord agrees to respond to
Tenant’s initial request for approval of Tenant’s plans and specifications
within fifteen (15) days of receipt and of any revisions to Tenant’s plans and
specifications within ten (10) days of receipt, provided that if the initial
submission of such plans and specifications are of such a scope or complexity
that it would be unreasonable to expect Landlord to respond within the
aforementioned time period, Landlord shall respond to such request for approval
within twenty (20) days of receipt, and if any revisions thereto are similarly
complex, Landlord’s response to such revisions of the plans and specifications
shall be made within fifteen (15) days of receipt. Any denial of approval shall
specify, in reasonable detail in writing, the reasons for such denial. Landlord’s
failure to respond within the aforementioned time periods shall be deemed
approval of any such submission by Tenant.

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Tenant shall reimburse Landlord within thirty
(30) days after Landlord’s demand for any reasonable, out of pocket costs and
expenses incurred by Landlord in connection with Landlord’s review of Tenant’s
plans and specifications for any such alterations, installations, additions or
improvements.

Any such approved
alterations and improvements shall be performed in accordance with the
foregoing and the following provisions of this Article 8:

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

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

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

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

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

5.         During the progress of the work to be
done by Tenant, said work shall be subject to inspection by representatives of
Landlord which shall be permitted access and the opportunity to inspect, at all
reasonable times during business days and upon reasonable prior notice from
Landlord to Tenant (except no such notice shall be required in the event of an
emergency).

6.         Intentionally Deleted.

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

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

(ii)       reasonable
comprehensive general liability and property damage insurance naming Landlord,
its designees and Tenant as insureds, with coverage of at least $1,000,000
single limit.

Notice is hereby given that Landlord
shall not be liable for any labor or materials furnished or to be furnished to
Tenant upon credit, and that no mechanic’s or other lien for any such labor or
materials shall attach to or affect the reversion or other estate or interest
of Landlord in and to the demised premises.

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

8.3.           All alterations, installations,
additions and improvements made and installed by Landlord, or those made and
installed by Tenant using the Work Credit, shall be the property of Landlord
and shall remain upon and be surrendered with the demised premises as a part
thereof at the end of the term of this Lease.

8.4.           All
alterations, installations, additions and improvements made and installed by
Tenant, or at Tenant’s expense, upon or in the demised premises which are of a
permanent nature and which cannot be removed without damage to the demised
premises or Building shall become and be the property of Landlord, and shall
remain upon and be surrendered with the demised premises as a part thereof at
the end of the term of this Lease, except that, Landlord shall have the right
and privilege at any time up to six (6) months prior to the termination of this
Lease to serve notice upon Tenant that any of such alterations, installations,
additions and improvements which are Uncommon Alterations (as hereinafter defined)
shall be removed and, in the event of service of such notice, Tenant will, at
Tenant’s own cost and expense, remove the same in accordance with such request
and repair any damage caused by such removal, ordinary wear and tear and
casualty excluded. At the same time Tenant submits to Landlord its request for
approval of any alterations, installations, additions and improvements and/or
the plans and specifications, Tenant may request, in writing, that Landlord
specify any Uncommon Alterations which Tenant may be required to

 38
 

remove on or before the expiration of
the term of this Lease. Landlord shall notify Tenant at the time of the
approval of the alterations, installations, additions and improvements or the
plans and specifications in question of those Uncommon Alterations which Tenant
is required to remove before the expiration of the term of this Lease in
accordance with the terms of this Section 8.4, and, if Landlord so notifies
Tenant, Tenant shall, upon the expiration or earlier termination of the term of
this Lease, remove, at Tenant’s sole cost and expense, such Uncommon
Alterations specified in Landlord’s notice, repair any damage to the demised
premises in connection therewith, ordinary wear and tear, casualty and
condemnation excepted. Failure by Landlord to designate Uncommon Alterations at
the time Landlord approves such alterations, installations, additions and
improvements shall be deemed designation of such alterations, installations,
additions and improvements as other than Uncommon Alterations, provided that
Tenant has requested that Landlord so designate at the time such plans are
submitted to Landlord for Landlord’s approval. The following are the “Uncommon Alterations”which Landlord shall have the right to
require Tenant to remove in accordance with this Section 8.4: massive
structural changes, such as the creation of a double height ceiling or removal
of a portion of the existing slab or such other structural changes of a similar
nature and magnitude, structural reinforcement, raised floors, stairways
(provided, however, Tenant shall not be required to remove the stairway which
is located in the demised premises as of the date of this Lease) or any similar
structural alterations, installations, additions and improvements not typically
found in a build-out of class A space in midtown Manhattan. Any dispute as to
whether an item is an Uncommon Alteration shall not otherwise affect the
approval of Tenant’s proposed alterations, installations, additions and
improvements. Notwithstanding anything to the contrary contained in this
Section 8.4, Tenant shall have the right to construct a raised floor with an
area of up to 150 square feet in the demised premises, without being required
to remove such raised floor upon expiration or earlier termination of this
Lease.

8.5.           Where furnished by or at the expense
of Tenant all furniture, furnishings and trade fixtures, including without
limitation, murals, business machines and equipment, counters, screens, grille
work, special paneled doors, cages, partitions, metal railings, closets,
paneling, lighting fixtures and equipment, drinking fountains, refrigeration
and air handling equipment, and any other movable property shall remain the
property of Tenant which may at its option remove all or any part thereof at
any time prior to the expiration of the term of this Lease. In case Tenant
shall decide not to remove any part of such property, Tenant shall notify
Landlord in writing not less than three (3) months prior to the expiration of
the term of this Lease, specifying the items of property which it has decided
not

 39
 

to remove. If, within thirty (30) days after the service of such
notice, Landlord shall request Tenant to remove any of the said property,
Tenant shall at its expense remove the same in accordance with such request. As
to such property which Landlord does not request Tenant to remove, the same
shall be, if left by Tenant, deemed abandoned by Tenant and thereupon the same
shall become the property of Landlord.

8.6.           If
any alterations, installations, additions, improvements or other property which
Tenant shall have the right to remove or be requested by Landlord to remove as
provided in Sections 8.4 and 8.5 hereof (herein in this Section 8.6 called the “property”) are not removed on or prior to the
expiration of the term of this Lease, Landlord shall have the right to remove
the property and to dispose of the same without accountability to Tenant and at
the sole cost and expense of Tenant, provided, however, there shall be no
charge to Tenant hereunder due to the removal of any property which Tenant is
not required to remove under Section 8.4 or Section 8.5. In case of any damage
to the demised premises or the Building resulting from the removal of the
property Tenant shall repair such damage or, in default thereof, shall
reimburse Landlord for Landlord’s cost in repairing such damage. This
obligation shall survive any termination of this Lease.

8.7.           Tenant
shall keep records of Tenant’s alterations, installations, additions and
improvements costing in excess of $25,000, and of the cost thereof. Tenant
shall, within 45 days after demand by Landlord, furnish to Landlord copies of
such records and cost if Landlord shall require same in connection with any
proceeding to reduce the assessed valuation of the Building, or in connection
with any proceeding instituted pursuant to Article 14 hereof.

8.8.           Tenant
shall have the right to install two (2) executive bathrooms (including a shower
in each bathroom) in the demised premises and two (2) pantries or other similar
structures on each floor of the demised premises (Landlord hereby acknowledges
that neither the executive bathrooms nor the pantries shall be deemed Uncommon
Alterations for purposes of Section 8.4 above), provided Tenant (a) complies
with all Legal Requirements (as hereinafter defined) related thereto and (b)
has received written approval of the plans and specifications therefor from
Landlord in accordance with the provisions of this Article 8 (provided that
such approval shall only be required if the installation of same are not a part
of Tenant’s Work, in which event the provisions of Article 3 hereof would
apply).

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ARTICLE 9

REPAIRS

9.1.           Tenant
shall, at its sole cost and expense, make such repairs to the demised premises
and the fixtures and appurtenances therein as are necessitated by the act,
omission, occupancy or negligence of Tenant (except for 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) 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. All non-casualty damage or injury to the demised premises and to its
fixtures, appurtenances and equipment or to the Building or to its fixtures,
appurtenances and equipment caused by Tenant moving property in or out of the
Building or by installation or removal of furniture, fixtures or other
property, and for which Landlord has not been or will not be reimbursed by
insurance, shall be repaired, restored or replaced promptly by Tenant at its
sole cost and expense, which repairs, restorations and replacements shall be in
quality and class equal to the original work or installations. If Tenant fails
to make such repairs, restoration or replacements, same may be made by Landlord
at the expense of Tenant and such expense shall be collectible as additional
rent and shall be paid by Tenant within 15 days after rendition of a bill
therefor.

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

9.2.           Tenant
shall not place a load upon any floor of the demised premises exceeding the
floor load per square foot area which such floor was designed to carry and
which is allowed by law. Landlord certifies that the floor of the demised
premises will carry 50 pounds live load per square foot of floor space and 20
pounds for partitions per square foot of floor space. If Tenant shall desire a
floor load in excess of that set forth above, Landlord agrees (provided
Landlord’s architects, in their sole discretion, find that the work necessary
to increase such floor load does not adversely affect the structure of the
Building, and further provided that such work will not interfere with the
amount or availability of any space adjoining alongside, above or below the
demised premises, or interfere with the occupancy of other tenants in the
Building), to strengthen and reinforce the same so as to give the live load
desired, provided Tenant shall submit to Landlord the plans showing the
locations of and the desired floor live load for the areas in question and
provided further that Tenant shall agree to pay for or reimburse Landlord on
demand for the cost of such strengthening and

 41
 

reinforcement as well as any other costs to and expenses of Landlord
occasioned by or resulting from such strengthening or reinforcement.

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

9.4.           Except
as otherwise provided in this Lease, there shall be no allowance to Tenant for
a diminution of rental value and no liability on the part of Landlord by reason
of inconvenience, annoyance or injury to business arising from the making of
any repairs, alterations, additions or improvements in or to any portion of the
Building or the demised premises or in or to fixtures, appurtenances or
equipment thereof. Landlord shall exercise reasonable diligence so as to
minimize any interference with Tenant’s business operations.

9.5.           Supplementing
the provisions of this Article 9 and notwithstanding anything contained herein
to the contrary, but subject to the recoupment provisions of Article 5 of this
Lease, Landlord, at Landlord’s sole cost and expense, shall make (except that Landlord
shall undertake the following at Tenant’s sole cost and expense when such
repairs are necessitated by Tenant’s installations, alterations or improvements
or by the improper or negligent acts of any person using or occupying the
demised premises through or under Tenant or any of the servants, employees,
contractors, agents or licensees of Tenant) (i) all structural repairs to the
demised premises as and when required, (ii) all repairs (and replacements if
required in the reasonable judgment of Landlord) necessary to the base Building
systems in order to furnish to the demised premises the services required to be
furnished by Landlord to Tenant pursuant to Article 32 hereof and (iii) all
necessary repairs (and replacements if required in the reasonable judgment of
Landlord) to the public portions and Common Areas of the Building which affect
Tenant’s use and enjoyment of the demised premises including, but not limited
to, the ground floor lobby. Landlord shall maintain the Building as a first
class office building located in midtown Manhattan.

 42
 

ARTICLE 10

REQUIREMENTS OF LAW; FIRE INSURANCE

10.1.         Tenant shall comply with all laws,
orders and regulations of federal, state, county and municipal authorities, and
with any direction of any public officer or officers, pursuant to law
(collectively, “Legal Requirements”),which shall impose any violation, order or
duty upon Landlord or Tenant with respect to the demised premises or the
Building occasioned by Tenant’s specific manner of use of the demised premises
in contradistinction to mere use as set forth in Section 2.1, including,
without limitation, all Legal Requirements (a) made necessary as a result
of any of Tenant’s Alterations, and(b) relating to the ability of disabled persons to have access to or
use of all or any portion of the demised premises, or any facilities therein,
(including, without limitation, Local Law 58 and Title III of the ADA, as same
may be amended from time to time); provided, same shall exclude path of travel
to the demised premises and anything outside the demised premises, which shall
be Landlord’s responsibility. Tenant shall not be obligated to comply with any
Legal Requirements which (i) relate to asbestos or any other hazardous
material, unless such asbestos or hazardous material has been installed or
placed in the demised premises or the Building by Tenant, (ii) are of
building-wide application to general office space occupancy (provided, however,
Tenant shall be responsible for complying within the demised premises with
Legal Requirements which are of building-wide application in office buildings
in Manhattan but only to the extent such compliance applies to the demised
premises and not to the base Building systems, Building structure or common
areas of the Building, such as compliance within the demised premises with New
York City Local Law 16, Local Law 5 and similar laws, or(iii) relate to conditions existing
prior to the Commencement Date). Landlord shall comply with all Legal
Requirements with which Tenant is not required to comply hereunder, as well as
timely comply with any Legal Requirements requiring alteration to public
portions and common areas of the Building and Building systems, except to the
extent that (and excluding only such portion of) an area of any of the
foregoing that has been altered by or on behalf of Tenant (collectively, the “core areas”), if the failure to comply
would interfere with Tenant’s right to occupy or adversely affect Tenant’s use
of the demised premises. Landlord’s obligation to so comply as set forth in the
immediately preceding sentence is subject to the recoupment provisions of
Article 5 of this Lease. Without limiting Landlord’s obligations in the
penultimate sentence of this Section 10.1, Landlord shall, at its expense,
install in the Building core doors any hardware required by Legal Requirements
and move any elevator call buttons required to be moved by Legal Requirements.

 43
 

10.2.         Tenant shall not do or permit to be
done any act or thing upon the demised premises which will invalidate or be in
conflict with New York Standard fire insurance policies covering the Building,
and fixtures and property therein, or which would increase the rate of fire
insurance applicable to the Building to an amount higher than it otherwise
would be; and Tenant shall neither do nor permit to be done any act or thing
upon the demised premises which shall or might subject Landlord to any
liability or responsibility for injury to any person or persons or to property
by reason of any business or operation being carried on within the demised
premises; but nothing in this Section 10.2 shall prevent Tenant’s use of the
demised premises for the purposes stated in Article 2 hereof.

10.3.         If, as a result of any act or omission
by Tenant or violation of this Lease, the rate of fire insurance applicable to
the Building shall be increased to an amount higher than it otherwise would be,
Tenant shall reimburse Landlord for all increases of Landlord’s fire insurance
premiums so caused; such reimbursement to be additional rent payable upon the
first day of the month following any outlay by Landlord for such increased fire
insurance premiums. In any action or proceeding wherein Landlord and Tenant are
parties, a schedule or “make up”of rates for the Building or demised
premises issued by the body making fire insurance rates for the demised
premises shall be presumptive evidence of the facts therein stated and of the
several items and charges in the fire insurance rate then applicable to the
demised premises. Landlord hereby represents to Tenant that the use of the
demised premises for general and executive offices will not increase the rate
of fire insurance applicable to the Building.

10.4.         Landlord shall maintain at all times
during the term of this Lease such casualty insurance covering the Building as
Landlord may be required to maintain pursuant to any mortgage encumbering the
building project and to the extent there is, at any time, no mortgage
encumbering the building project during the term of this Lease, Landlord shall
maintain casualty insurance covering the Building similar to the insurance
covering other office buildings of a quality and character similar to the
Building, located in the vicinity of the Building. Further, Landlord’s
deductible with regard to such insurance shall be commercially reasonable
considering the quality, character and location of the Building, but, in no
event, shall such deductible exceed $150,000.

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ARTICLE 11

SUBORDINATION, NOTICE TO LESSORS AND
MORTGAGEES

11.1.         Subject to delivery of subordination,
non-disturbance and attornment agreements set forth in Section 11.5 below, this
Lease, and all rights of Tenant hereunder, are and shall be subject and
subordinate in all respects to all ground leases, overriding leases and
underlying leases of the Land and/or the Building now or hereafter existing and
to all mortgages which may now or hereafter affect the Land and/or the Building
and/or any of such leases, whether or not such mortgages shall also cover other
lands and/or buildings, to each and every advance made or hereafter to be made
under such mortgages, and to all renewals, modifications, replacements and
extensions of such leases and such mortgages and spreaders and consolidations
of such mortgages. The leases to which this Lease is, at the time referred to,
subject and subordinate pursuant to this Article are hereinafter sometimes
called “superior leases”and the mortgages to which this Lease is,
at the time referred to, subject and subordinate are hereinafter sometimes
called “superior mortgages”and the lessor of a superior lease or its
successor in interest at the time referred to is sometimes hereinafter called a
“lessor,” and the holder of
a superior mortgage or its successor in interest at the time referred to is
sometimes hereinafter called a “holder.”

11.2.         In the event of any act or omission of
Landlord which would give Tenant the right, immediately or after lapse of a
period of time, to cancel or terminate this Lease, or to claim a partial or
total eviction, Tenant shall not exercise such right (i) until it has given
written notice of such act or omission to the holder of each superior mortgage
and the lessor of each superior lease whose name and address shall previously
have been furnished to Tenant in writing, (ii) as long as Lender, in good
faith, shall have commenced to cure such default within the below-referenced
time period and shall be prosecuting the same to completion with reasonable
diligence and (iii) unless such act or omission shall be one which is not
capable of being remedied by Landlord or such holder or lessor within a reasonable
period of time, until a reasonable period for remedying such act or omission
shall have elapsed following the giving of such notice and following the time
when such holder or lessor shall have become entitled under such superior
mortgage or superior lease, as the case may be, to remedy the same (which
reasonable period shall be the period given to Landlord to remedy such default,
plus an additional thirty (30) days). If possession of the demised premises is
required in order to cure such default, or if such default is not susceptible
of being cured by Lender, as long as Lender, in good faith, shall have notified
Tenant that Lender intends to institute proceedings to so obtain possession,
and, thereafter, as long as such proceedings shall have been

 45
 

instituted and shall be prosecuted
with reasonable diligence, Lender shall have a period of time not to exceed one
hundred twenty (120) days from receipt of a default notice from Tenant to cure
any default.

11.3.         Subject to the terms and provisions of
any subordination, non-disturbance and attornment agreement, if the lessor of a
superior lease or the holder of a superior mortgage shall succeed to the rights
of Landlord under this Lease, whether through possession or foreclosure action
or delivery of a new lease or deed, then at the request of such party so
succeeding to Landlord’s rights (herein sometimes called “successor landlord”), Tenant shall
attorn to and recognize such successor landlord as Tenant’s landlord under this
Lease, and shall promptly execute and deliver any appropriate instrument that
such successor landlord may reasonably request to evidence such attornment.
Upon such attornment this Lease shall continue in full force and effect as, or
as if it were, a direct lease between the successor landlord and Tenant upon
all of the terms, covenants, conditions, agreements and provisions as are set
forth in this Lease except that the successor landlord shall not.

(a)            be liable for any previous act or
omission of Landlord under this Lease, except a successor landlord shall be
liable for any such previous act or omission of Landlord to the extent there is
an ongoing obligation on the part of Landlord to perform such act or omission
and in such event the successor landlord shall only be liable from and after
the date the successor landlord succeeds to the rights of Landlord,

(b)            be subject to any offset which shall
have theretofore accrued to Tenant against Landlord, other than those offsets
which are expressly provided for in this Lease (including, but not limited to,
the Work Credit),

(c)            be bound by any previous
modification of this Lease, not expressly provided for in this Lease, or by any
previous prepayment of more than one month’s fixed annual rent, unless such
modification or prepayment shall have been expressly approved in writing by the
lessor of the superior lease or the holder of the superior mortgage through or
by reason of which the successor landlord shall have succeeded to the rights of
Landlord under this Lease.

11.4.         If, in connection with the financing of
the Building, the holder of any mortgage shall request reasonable modifications
in this Lease as a condition of approval thereof, Tenant will not unreasonably
withhold, delay or defer making such modifications, provided that they do not
increase the obligations of Tenant hereunder, reduce the obligations of
Landlord hereunder or adversely affect the leasehold interest created by this
Lease or Tenant’s rights hereunder except to an immaterial and

 46
 

non-monetary
degree. Landlord agrees to promptly pay any reasonable attorneys’ fees incurred
by Tenant in connection with the entering into of any such amendment or
modification of this Lease.

11.5.         Landlord shall (without charge to
Tenant) (a) within sixty (60) days from the date hereof, obtain for the benefit
of Tenant a subordination, non-disturbance and attornment agreement from the
holder of the current underlying mortgage in the form of Exhibit F annexed hereto and (b) secure
a commercially reasonable subordination, non-disturbance and attornment
agreement from any future mortgagee or holders of other superior interests
affecting the Land and/or Building. If Landlord fails to satisfy its
obligations under this Section 11.5, Tenant shall have the right to terminate
this Lease upon fifteen (15) days’ written notice to Landlord; provided, however,
should Landlord deliver the required subordination, non-disturbance and
attornment agreement to Tenant during such fifteen (15) day period, then Tenant’s
termination notice shall be void ab
initio and of no force and
effect.

11.6.         Landlord represents to Tenant that, as
of the date hereof, (a) the only superior mortgage is that certain Mortgage
Assumption, Modification and Extension Agreement made by Landlord to Morgan
Stanley Capital, Inc. as of September 10, 1997 which is currently serviced by
GMAC Commercial Mortgage as Master Servicer on behalf of LaSalle National Bank
as Trustee of the Morgan Stanley Capital I Inc. Commercial Mortgage Pass
Through Certificates Series 1997-XL1, (b) there are no superior leases and (c)
there are no other interests which if foreclosed would affect Tenant’s interest
under this Lease.

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ARTICLE 12

LOSS, DAMAGE, REIMBURSEMENT, LIABILITY, ETC.

12.1.         Landlord or its agents shall not be
liable for any injury or damage to persons or property resulting from fire,
explosion, falling plaster, steam, gas, electricity, water, rain or snow or
leaks from any part of the Building, or from the pipes, appliances or plumbing
works or from the roof, street or subsurface or from any other place or by
dampness or by any other cause of whatsoever nature, unless any of the
foregoing shall be caused by or due to the negligence of Landlord, its agents,
contractors, servants or employees.

12.2.         Landlord
or its agents shall not be liable for any damage which Tenant may sustain if at
any time any window of the demised premises is broken, or temporarily closed,
darkened or bricked up for any reason whatsoever, except only the Landlord’s
arbitrary acts, and Tenant shall not be entitled to any compensation therefor
or abatement of rent or to any release from any of Tenant’s obligations under
this Lease, nor shall the same constitute an eviction.

12.3.         Tenant
shall reimburse Landlord for all expenses, damages or fines incurred or
suffered by Landlord, and for which Landlord has not been or will not be
reimbursed by insurance, by reason of any breach, violation or nonperformance
by Tenant, or its agents, servants or employees, of any covenant or provision
of this Lease, or by reason of damage to persons or property caused by moving
property of or for Tenant in or out of the Building, or by the installation or
removal of furniture or other property of or for Tenant except as provided in
Section 8.5 of this Lease, or by reason of or arising out of the careless­ness,
negligence or improper conduct of Tenant, or its agents, servants or employees,
in the use or occupancy of the demised premises. Subject to the provisions of
Section 19.4 hereof, where applicable, Tenant shall have the right, at Tenant’s
own cost and expense, to participate in the defense of any action or proceeding
brought against Landlord, and in negotiations for settlement thereof if,
pursuant to this Section 12.3, Tenant would be obligated to reimburse Landlord
for expenses, damages or fines incurred or suffered by Landlord.

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

12.5.         Tenant agrees to look solely to
Landlord’s estate and interest in the Land and Building, or the lease of the
Building, or of the Land and Building, and the demised premises, or the
proceeds from any sale thereof (“Proceeds”),
for the satisfaction of any right or remedy of Tenant for the collection

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of a judgment (or other judicial
process) requiring the payment of money by Landlord, in the event of any
liability by Landlord, and no other property or assets of Landlord (or the
partners or members thereof if Landlord is other than an individual or
corporation) shall be subject to levy, execution, attachment, or other
enforcement procedure for the satisfaction of Tenant’s remedies under or with
respect to this Lease, the relationship of Landlord and Tenant hereunder, or
Tenant’s use and occupancy of the demised premises, or any other liability of Landlord
to Tenant. Notwithstanding anything contained herein to the contrary, Tenant’s
right to look to the Proceeds shall be limited such that (a) Tenant shall have
commenced an action against Landlord no later than six (6) months from the
receipt of the Proceeds by Landlord, (b) Tenant may look to the Proceeds
actually received by Landlord (i.e., net of secured indebtedness) from
any such sale, transfer or conveyance for the collection of any such judgment,
(c) under no circumstances shall a holder of a superior mortgage be bound by
the foregoing, and (d) the foregoing may not be utilized by Tenant to enjoin
any such sale, transfer or conveyance in any manner whatsoever.

12.6.         (a) Landlord agrees that, if obtainable
at no additional cost, it will include in its fire insurance policies
appropriate clauses pursuant to which the insurance companies (i) waive all
right of subrogation against Tenant with respect to losses payable under such
policies and/or (ii) agree that such policies shall not be invalidated should
the insured waive in writing prior to a loss any or all right of recovery
against any party for losses covered by such policies. But should any
additional premises be exacted for any such clause or clauses, Landlord shall
be released from the obligation hereby imposed unless Tenant shall agree to pay
such additional premium.

(b)            Tenant agrees to include, if
obtainable at no additional cost, in its fire insurance policy or policies on
its furniture, furnishings, fixtures and other property removable by Tenant
under the provisions of this Lease, appropriate clauses pursuant to which the
insurance company or companies (i) waive the right of subrogation against
Landlord with respect to losses payable under such policy or policies and/or
(ii) agree that such policy or policies shall not be invalidated should the
insured waive in writing prior to a loss any or all right of recovery against
any party for losses covered by such policy or policies. But should any
additional premium be exacted for any such clause or clauses, Tenant shall be
released from the obligation hereby imposed unless Landlord shall agree to pay
such additional premium.

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

 49
 

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

(d)            Landlord and Tenant hereby agree to
advise the other promptly if the clauses to be included in their respective
insurance policies pursuant to subdivisions 12.6 (a) and (b) hereof cannot be
obtained. Landlord and Tenant hereby also agree to notify the other promptly of
any cancellation or change of the terms of any such policy which would affect
such clauses.

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ARTICLE 13

DESTRUCTION - FIRE OR
OTHER CASUALTY

13.1.         If the Building shall be partially
damaged or destroyed or if the demised premises shall be partially or totally
damaged or destroyed by fire, casualty or other such cause, then, whether or
not the damage or destruction shall have resulted from the fault or neglect of
Tenant, or its servants, employees, agents, visitors or licensees (and if this
Lease shall not have been canceled as in this Article 13 hereinafter provided),
Landlord will repair the damage, and restore, replace, and rebuild the Building
and the demised premises (including such of Tenant’s leasehold improvements
which are covered by Landlord’s insurance policy or policies covering
betterments and improvements) at its expense, with reasonable dispatch and
continuity after notice to it of the damage or destruction; provided, however,
that Landlord shall not be required to repair or replace any personal property
installed by or on behalf of Tenant. Landlord and Tenant agree to cooperate
with each other in repairing, restoring, replacing and rebuilding the Building and
the demised premises in order to obtain the best possible claims under Landlord’s
and Tenant’s respective insurance policies. If the demised premises shall be
partially damaged or partially destroyed, the fixed annual rent and additional
rent payable hereunder shall be abated to the extent that the demised premises
shall have been rendered untenantable, inaccessible or unfit for Tenant’s use
and Tenant does not occupy such damaged or destroyed part of the demised
premises on other than an emergency basis for the period from the date of such
damage or destruction to the date that the damage shall be repaired or
restored. If the demised premises or a major part thereof shall be totally, or
substantially totally, damaged or destroyed or rendered completely, or
substantially completely, untenantable or inaccessible on account of fire,
casualty or other such cause, the fixed annual rent and additional rent shall
completely abate as of the date of the damage or destruction and until Landlord
shall repair, restore, replace and rebuild the demised premises; provided,
however, that should Tenant reoccupy a portion of the demised premises for the
purpose of conducting business during the period the restoration work is taking
place and prior to the date that the same is made completely tenantable and/or
accessible (as the case may be), fixed annual rent and additional rent shall be
apportioned and payable by Tenant in proportion to the part of the demised
premises occupied by it. Nevertheless, in case of any substantial damage or
destruction to the demised premises, Tenant, in addition to and without waiver
of any other rights or remedies available to it, may cancel this Lease by
written notice to Landlord, if (i) within 120 days from the date of the damage
or destruction, Landlord does not file a proof of loss with its insurer; (ii)
within 180 days of the date of damage or destruction Landlord does not let a
contract or contracts

 51
 

which shall provide for the complete
restoration of the demised premises within a period of one (1) year from the
date of the damage or destruction; (iii) work under such contract or contracts
has not commenced within 180 days of the date of said damage or destruction; or
(iv) said work is not prosecuted with reasonable diligence to its completion;
provided that Tenant shall not be entitled to cancel this Lease pursuant to
this sentence more than thirty (30) days after Landlord shall have given
written notice to Tenant that the state of facts specified in clause (i), (ii)
or (iii) of this sentence, as the case may be, has occurred. The period for the
completion of the required repairs and restoration work shall be extended by
the number of days lost (not to exceed, however, one year) in the event such
loss results from strike, act of God, war, governmental action, national or
state or municipal emergency, or any cause beyond the reasonable control of
Landlord.

13.2.         In case the Building or the demised
premises shall be substantially damaged or destroyed by fire or other cause at
any time during the last two years of the term of this Lease, then either
Landlord or Tenant may cancel this Lease upon written notice to the other party
hereto given within sixty (60) days after such damage or destruction.

13.3.         If
the Building shall be so damaged that Landlord shall decide to demolish or not
to rebuild it, then in either of such events Landlord shall, within one-hundred
twenty (120) days after such fire or other casualty, give Tenant a notice in
writing of such decision, and thereupon the term of this Lease shall expire by
lapse of time upon the sixtieth (60th) day after such notice is given, and
Tenant shall vacate the demised premises and surrender the same to Landlord.
Landlord shall not deliver a termination notice pursuant to this Section 13.3
and thus terminate this Lease unless Landlord shall also terminate the leases
of all other tenants occupying office space in the Building.

13.4.         In the event of the termination of this
Lease pursuant to the provisions of this Article 13, this Lease shall expire as
fully and completely on the date fixed in such notice of termination as if that
were the date definitely fixed for the expiration of this Lease, but the fixed
annual rent and additional rent shall be apportioned and shall be paid up to
and including the date of such damage or destruction, and any excess prepaid
rent or excess prepaid additional rent shall be refunded to Tenant.

13.5.         No damages, compensation or claim shall
be payable by Landlord for inconvenience, loss of business or annoyance arising
from any repair or restoration of any portion of the demised premises or of the
Building. Landlord shall use its best efforts to effect such repair or
restoration promptly

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and in such manner as not unreasonably
to interfere with Tenant’s occupancy.

13.6.         The provisions of this Article 13 shall
be considered an express agreement governing any case of damage or destruction
of the Building or the demised premises by fire or other casualty and Section
227 of the Real Property Law of the State of New York, and any other law of
like import now or hereafter in force providing for such contingency shall have
no application.

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ARTICLE 14

EMINENT DOMAIN

14.1.                 In
the event that the whole of the demised premises shall be lawfully condemned or
taken in any manner for any public or quasi-public use or purpose, this Lease
and the term and estate hereby granted shall forthwith cease and terminate as
of the date of vesting of title (hereinafter referred to as the “date of taking”) , and Tenant shall
have no claim against Landlord for, or make any claim for the value of any
unexpired term of this Lease, and the fixed annual rent and additional rent
shall be apportioned as of such date.

14.2.                 In
the event that any part of the demised premises shall be so condemned or taken,
then this Lease shall be and remain unaffected by such condemnation or taking,
except that the fixed annual rent and additional rent allocable to the part so
taken shall be apportioned as of the date of taking, provided, however, that
Tenant may elect to cancel this Lease in the event that more than twenty-five
(25%) percent of the demised premises should be so condemned or taken, provided
such notice of election is given by Tenant to Landlord not later than sixty
(60) days after the date when title shall vest in the condemning authority.
Upon the giving of such notice, this Lease shall terminate on the sixtieth
(60th) day following the date of such notice and the fixed annual rent and
additional rent shall be apportioned as of such termination date. Upon such
partial taking and this Lease continuing in force as to any part of the demised
premises, the fixed annual rent and additional rent shall be diminished by an
amount representing the part of the fixed annual rent and additional rent
properly applicable to the portion or portions of the demised premises which
may be so condemned or taken. If as a result of the partial taking (and this
Lease continuing in force as to the part of the demised premises not so taken),
any part of the demised premises not taken is damaged, Landlord agrees with
reasonable promptness to do the work necessary to restore the damaged portion
to the condition existing immediately prior to the taking, and prosecute the
same with reasonable diligence to its completion. In the event Landlord and
Tenant are unable to agree as to the amount by which the fixed annual rent and
additional rent shall be diminished, the matter shall be determined by
arbitration in accordance with the provisions of Article 33 of this Lease.
Pending such determination. Tenant shall pay to Landlord the fixed annual rent
and additional rent as fixed by Landlord, subject to adjustment in accordance
with the arbitration.

14.3.                 Nothing
herein provided shall preclude Tenant from appearing, claiming, proving and
receiving in the condemnation proceeding Tenant’s moving expenses, and the
value of Tenant’s fixtures, or Tenant’s alterations, installments and

 54
 

improvements which do not become part
of the Building, or property of Landlord.

14.4.                 In
the event that more than twenty-five (25%) percent of the demised premises
shall be so taken and Tenant shall not have elected to cancel this Lease as
above provided, the entire award for a partial taking shall be paid to
Landlord, and Landlord, at Landlord’s own expense, shall to the extent of the
net proceeds (after deducting reasonable expenses including attorney’s and
appraisers’ fees) of the award restore the unaffected part of the demised
premises to substantially the same condition and tenantability as existed prior
to the taking.

Until said unaffected portion is restored, Tenant shall be entitled
to a proportionate abatement of fixed annual rent and additional rent for that
portion of the demised premises which is being restored and is not usable until
the completion of the restoration or until the said portion of the demised
premises is used by Tenant, whichever occurs sooner. Said unaffected portion
shall be restored within a reasonable time but not more than six (6) months
after the taking, provided, however, if Landlord is delayed by strike, lockout,
the elements, or other causes beyond Landlord’s control, the time for
completion shall be extended for a period equivalent to the delay. Should
Landlord fail to complete the restoration within the said six (6) months or the
time as extended, Tenant may elect to cancel this Lease and the term hereby
granted in the manner and with the same results as set forth in the next two
sentences of this Section 14.4. If such partial taking of the demised premises
shall occur in the last 2 years of the term hereof, either party, irrespective
of the area of the space remaining, may elect to cancel this Lease and the term
hereby granted, provided such party shall, within thirty (30) days after such
taking, give notice to that effect, and upon the giving of such notice, the
fixed annual rent and additional rent shall be apportioned and paid to the date
of expiration of the term specified and this Lease and the term hereby granted
shall cease, expire and come to an end upon the expiration of said sixty (60)
days specified in said notice. If either party shall so elect to end this Lease
and the term hereby granted. Landlord need not restore any part of the demised
premises and the entire award for partial condemnation shall be paid to
Landlord, and Tenant shall have no claim to any part thereof, except as to the
items set forth in Section 14.3 hereof where same are applicable.

14.5.                 If
the temporary use or occupancy of all or any part of the demised premises shall
be so taken (a) the demised term shall not be reduced or affected in any way
except as provided in (d) below, (b) Tenant shall continue to be responsible
for all of its obligations hereunder and shall continue to pay all fixed annual
rent and additional rent when due, (c) Tenant shall be entitled to receive that
portion of the

 55
 

award which represents reimbursement
for the cost of restoration of the demised premises, compensation for the use
and occupancy of the demised premises and for any taking of Tenant’s property,
except that, if the temporary period of taking shall extend beyond the
expiration of the term of this Lease, the portion of the award representing compensation
for the use and occupancy of the demised premises shall be apportioned between
Landlord and Tenant as of said expiration date of said term and Landlord shall
receive that portion of the award which represents reimbursement for the cost
of restoration of the demised premises, provided, however, that Tenant shall
receive an amount equal to at least the lower of the fixed annual rent and
additional rent payable by Tenant to Landlord under this Lease for the portion
of the demised premises so taken, with respect to the period of taking, or the
entire award, and (d) if the date of taking shall occur during the last three
(3) years of the term of this Lease, Tenant may elect to cancel this Lease by
notice of election given by Tenant to Landlord not later than sixty (60) days
after the date when title shall vest in the condemning authority. Upon the
giving of such notice, this Lease shall terminate on the sixtieth (60th) day
following the date of such notice and the fixed annual rent and additional rent
shall be apportioned as of such termination date, with Landlord, and not
Tenant, to receive the portion of the award which represents reimbursement for
the cost of restoration of the demised premises and the portion of the award
representing compensation for the use and occupancy of the demised premises for
the time subsequent to the cancellation date. For purposes of this Lease, any
taking having a duration of more than twelve (12) consecutive calendar months
shall be deemed to be a permanent taking of the portion of the demised premises
so taken and shall be governed by the provisions of this Article 14 applicable
to a permanent taking.

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ARTICLE
15

ASSIGNMENT, MORTGAGING,
SUBLETTING, ETC.

15.1.                 Tenant
shall not (a) assign or otherwise transfer this Lease or the term and estate
hereby granted, (b) sublet the demised premises or any part thereof or allow
the same to be used or occupied by others or in violation of Article 2, (c)
mortgage, pledge or encumber this Lease or the demised premises or any part thereof
in any manner or permit any lien to be filed against this Lease, the demised
premises or the Building by reason of any act or omission on the part of
Tenant, or (d) advertise, or authorize a broker to advertise, for a subtenant
or an assignee, without, in each instance, obtaining the prior consent of
Landlord (which consent by Landlord, for purposes of this clause (d) only, will
not be unreasonably withheld, conditioned or delayed by Landlord, and Landlord
shall respond to any such request within five (5) days of receipt of such
request by Tenant or if Landlord fails to so respond, then Landlord shall be
deemed to have given its consent thereto), except as otherwise expressly
provided in this Article 15. For purposes of this Article 15, (i) the transfer of
a majority of the issued and outstanding capital stock of any corporate tenant,
or of a corporate subtenant, or a majority of the total interest in any
partnership tenant or subtenant, however accomplished, whether in a single
transaction or in a series of related or unrelated transactions, shall be
deemed an assignment of this Lease, or of such sublease, as the case may be,
except that the transfer of the outstanding capital stock of any corporate
tenant, or subtenant, shall be deemed not to include the sale of such stock by
persons or parties, through the “over-the-counter
market” or through any recognized stock exchange, other than
those deemed “insiders”within the meaning of the Securities
Exchange Act of 1934, as amended or (ii) a takeover agreement, shall be deemed
a transfer of this Lease, (iii) any person or legal representative of Tenant,
to whom Tenant’s interest under this Lease passes by operation of law, or
otherwise, shall be bound by the provisions of this Article 15 and (iv) a
modification, amendment or extension of a sublease shall be deemed a sublease.

15.2.                 The
provisions of Section 15.1 hereof shall not apply to transactions with a
corporation into or with which Tenant is merged or consolidated or with an
entity to which substantially all of Tenant’s assets are transferred or, if
Tenant is a partnership, with a successor partnership, nor shall the provisions
of clauses (a) and (b) of Section 15.1 apply to transactions with an entity
which controls or is controlled by Tenant or is under common control with
Tenant or to an initial offering of the stock of Tenant to the public.

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15.3.                 Any
assignment or transfer, whether made with Landlord’s consent as required by
Section 15.1 or without Landlord’s consent pursuant to Section 15.2, shall be made
only if, and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord a recordable agreement, whereby the
assignee shall unconditionally assume the obligations and performance of this
Lease and, from and after the effective date of such assignment, agree to be
personally bound by and upon all of the covenants, agreements, terms,
provisions and conditions hereof on the part of Tenant to be performed or
observed and whereby the assignee shall agree that the provisions of Section
15.1 hereof shall, notwithstanding such an assignment or transfer, continue to
be binding upon it in the future. Tenant covenants that, notwithstanding any
assignment or transfer, whether or not in violation of the provisions of this
Lease, and notwithstanding the acceptance of fixed annual rent by Landlord from
an assignee or transferee or any other party, Tenant shall remain fully liable
for the payment of the fixed annual rent due and to become due under this Lease
and for the performance of all of the covenants, agreements, terms, provisions
and conditions of this Lease on the part of Tenant to be performed or observed.
Promptly after entering into any assignment or sublet, Tenant shall deliver to
Landlord copies of all agreements executed in connection therewith.

15.4.                 The liability of Tenant, and
the due performance of this Lease on Tenant’s part, shall not be discharged,
released or impaired in any respect by an agreement or stipulation made by
Landlord or any grantee or assignee, by way of mortgage, or otherwise, of
Landlord, extending the time of, or modifying any of the obligations of this
Lease, or by any waiver or failure of Landlord to enforce any of the
obligations of this Lease, which shall remain in full force and effect and
Tenant shall continue liable hereunder. If any such agreement or modification
operates to increase the obligations of a Tenant under this Lease, the
liability under this Section 15.4 of the Tenant named in this Lease or any of
its successors-in-interest (unless such party shall have expressly consented in
writing to such agreement or modification) shall continue to be no greater than
if such agreement or modification had not been made. To charge Tenant named in
this Lease and its successors in interest, no demand or notice of any default
shall be required, Tenant and each of its successors in interest hereby
expressly waives any such demand or notice.

15.5.                 Landlord shall not unreasonably
withhold or delay its consent to an assignment of this Lease or a subletting of
all or a portion of the demised premises, provided:

(a)    If available, Tenant shall furnish Landlord
with the name and business address of the proposed subtenant or assignee,
information with respect to the nature and character of

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the proposed subtenant’s or assignee’s
business, or activities, such references and current financial information with
respect to net worth, credit and financial responsibility as are reasonably
satisfactory to Landlord and a term sheet containing all of the material terms
and provisions of a proposed assignment or sublease (provided, if the operative
documents contain changes in the economic terms and provisions set forth in the
term sheet delivered to Landlord that on the whole are more favorable to the
proposed subtenant or assignee by more than twelve and one-half percent (12.5%)
Landlord shall again have the recapture right afforded Landlord in Section
15.6(a) or (b) below, as the case may be, with respect to such proposed
assignment or sublet;

(b)    The proposed subtenant or assignee is a
reputable party whose financial net worth, credit and financial responsibility
is, considering the responsibilities involved, and taking into account that
Tenant continues to be liable hereunder, reasonably satisfactory to Landlord;

(c)    The nature and character of the proposed
subtenant or assignee, its business or activities and intended use of the
demised premises is, in Landlord’s reasonable judgment, in keeping with the
standards of the Building;

(d)    The proposed subtenant or assignee is not
then an occupant of any part of the Building or a party who dealt with Landlord
or Landlord’s agent (directly or through a broker) with respect to space in the
Building during the five (5) months immediately preceding Tenant’s request for
Landlord’s consent, provided, however, if Landlord does not then have
comparable space available in the Building and no such space will be available
within the next succeeding six (6) months, then Tenant may sublease to an
occupant in the Building or to a party who has dealt with Landlord in the
immediately preceding five (5) months;

(e)    All costs incurred with respect to providing
reasonably appropriate means of ingress and egress from the sublet space shall,
subject to the provisions of Article 8 with respect to alterations,
installations, additions or improvements be borne by Tenant;

(f)     Each sublease shall specifically state that
(i) it is subject to all of the terms, covenants, agreements, provisions, and
conditions of this Lease, (ii) the subtenant or assignee, as the case may be,
will not have the right to a further assignment thereof or sublease or
assignment thereunder, or to allow the demised premises to be used by others,
without the consent of Landlord in each instance, which shall be given or
withheld as provided for in this Lease, (iii) a consent by Landlord thereto
shall not be deemed or construed to modify, amend or affect the terms and
provisions of this Lease, or Tenant’s obligations hereunder, which shall
continue to apply to

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the premises involved, and the occupants thereof, as if the sublease
or assignment had not been made, (iv) if Tenant defaults in the payment of any
rent, Landlord is authorized to collect any rents due or accruing from any
assignee, subtenant or other occupant of the demised premises and to apply the
net amounts collected to the fixed annual rent and additional rent reserved
herein, (v) the receipt by Landlord of any amounts from an assignee or
subtenant, or other occupant of any part of the demised premises shall not be
deemed or construed as releasing Tenant from Tenant’s obligations hereunder or
the acceptance of that party as a direct tenant, and (vi) such sublease shall
provide that if the subtenant shall be paying for electricity on a “rent
inclusion basis” then such subtenant or Tenant (but in no event Landlord) shall
pay any taxes, levies or assessments which any governmental authority shall
assess by reason of the existence of such “rent inclusion basis” in the
sublease;

(g)    Intentionally Deleted;

(h)    Tenant shall pay Landlord’s reasonable
out-of-pocket costs to review the requested consent;

(i)     Tenant shall have complied with the
provisions in Section 15.6 and Landlord shall not have made any of the
elections provided for in Section 15.6; and

(j)     (l)    The proposed
subtenant or assignee shall not propose to use the demised premises as (i) a
bank trust company, safe deposit business, savings and loan association or loan
company, unless for general and executive office use and not for retail off the
street business; (ii) an employment or recruitment agency (other than an
executive search company of the quality of Russell Reynolds or Spencer Stuart);
or (iii) a school, college, university or educational institution whether or
not for profit; and (2) Tenant shall not sublet or assign the demised premises
to a government or any subdivision or agency thereof.

It is the intention of Landlord and Tenant
that Tenant may, at its option, initiate its request to obtain Landlord’s
consent and trigger Landlord’s recapture option by delivering to Landlord the
terms of a proposed assignment or sublet, either by having an actual sublessee
or assignee or without having an actual sublessee or assignee.

15.6.                 (a)   If Tenant
shall desire to assign this Lease, other than by an assignment contemplated by
Section 15.2, Tenant shall notify Landlord of Tenant’s desire and offer to
terminate this Lease and Tenant shall specify in such notice the effective date
of its desired termination, which shall be on the last day of a month no less
than two (2) months from the date that Tenant so notifies Landlord, and
Landlord shall have thirty (30) days from receipt of such notice to accept
Tenant’s offer.

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Landlord’s
failure to notify Tenant within said thirty (30) days of Landlord’s acceptance
or rejection of Tenant’s offer shall be deemed a rejection of such offer by
Landlord.

If Landlord shall notify Tenant within said
thirty (30) days that it elects to accept Tenant’s offer, then, this Lease
shall terminate on the effective date specified by Tenant as if it were the
expiration date set forth in this Lease and Tenant shall then promptly execute
and deliver to Landlord, in form reasonably satisfactory to Landlord and
Tenant, a termination agreement which shall be effective as of such effective
date. If Landlord should not so accept such offer and Tenant does not
consummate an assignment within nine (9) months after such offer has been
rejected (or deemed rejected) by Landlord or if any offer accepted by Tenant is
on economic terms and provisions that on the whole are more favorable to the
proposed assignee than those previously offered to Landlord (if there was a
prior offer) by more than 12.5%, then, in each such instance, the provisions of
this Section 15.6 shall apply again as if there had been no prior offer to Landlord,
except that Landlord’s time period to elect to accept Tenant’s offer to
terminate this Lease shall be reduced to ten (10) business days for each
subsequent offer to Landlord.

If Landlord should not elect to accept an
offerpursuant to
the foregoing paragraph, and should Tenant agree to assign this Lease, other
than by an assignment contemplated by Section 15.2, Tenant shall, as soon as
that agreement is consummated, but no less than ten (10) business days’ prior
to the effective date of the contemplated assignment, deliver to Landlord an
executed counterpart of such agreement, and all ancillary agreements with the
proposed assignee.

(b)    If Tenant shall desire to sublet any full
floor of the demised premises or the entire demised premises, other than by a
sublease contemplated by Section 15.2, Tenant shall notify Landlord of Tenant’s
desire and offer to terminate this Lease with respect to the space proposed to
be sublet if such proposed sublease is for all or substantially all of the
remaining term of this Lease. Tenant shall specify in such notice the effective
date of its desired sublease, which shall be on the last day of a month no less
than two (2) months from the date that Tenant so notifies Landlord, and
Landlord shall have thirty (30) days from receipt of such notice to accept
Tenant’s offer. Landlord’s failure to notify Tenant within said thirty (30)
days of Landlord’s acceptance or rejection of Tenant’s offer shall be deemed a
rejection of such offer by Landlord.

If Landlord shall notify Tenant within said
thirty (30) days that it elects to accept Tenant’s offer, then this Lease shall
terminate with respect to the space proposed to be sublet on the effective date
specified by Tenant as if it were the

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expiration
date set forth in this Lease and Tenant shall then promptly execute and deliver
to Landlord, in form reasonably satisfactory to Landlord and Tenant, a
termination agreement which shall be effective as of such effective date. If
Landlord should not so accept such offer and Tenant does not consummate a
sublease within nine (9) months after such offer has been rejected (or deemed
rejected) by Landlord or if any offer accepted by Tenant is on economic terms
and provisions that on the whole are more favorable to the proposed subtenant
than those previously offered to Landlord (if there was a prior offer) by more
than 12.5%, then, in each such instance, the provisions of this Section 15.6
shall apply again as if there had been no prior offer to Landlord, except that
Landlord’s time period to elect to accept Tenant’s offer to terminate this
Lease shall be reduced to ten (10) business days for each subsequent offer to
Landlord.

If Landlord should not elect to accept an
offerpursuant to
the foregoing paragraph, and should Tenant agree to sublet the demised
premises, other than by a sublease contemplated by Section 15.2, Tenant shall,
as soon as that agreement is consummated, but no less than ten (10) business
days’ prior to the effective date of the contemplated lease, deliver to
Landlord an executed counterpart of such agreement, an executed counterpart of
the proposed sublease and all ancillary agreements with the proposed sublessee.

15.7.                 If Tenant shall assign its
interest in this Lease or sublet all or any portion of the demised premises, in
accordance with this Lease, other than an assignment or sublease contemplated
by Section 15.2 hereof, then (a) if an assignment is involved, Tenant shall pay
Landlord, as and when received, fifty (50%) percent of any consideration
received by Tenant in connection with such assignment, after deducting from
such consideration the amount of Tenant’s Costs and (b) if a subletting is
involved (which shall be deemed to include for purposes of this Section any and
all renewals under then existing subleases by Tenant), and the rents received
by Tenant under a sublease shall exceed the rents reserved hereunder (such
excess is hereinafter referred to as “Excess
Rent”) that are allocable to the premises sublet (calculated on
the basis of the per rentable square foot rental rates set forth herein) fifty
(50%) percent of such excess (after deducting from such excess the amount of
Tenant’s Costs) shall be paid by Tenant to Landlord as and when received. For
purposes of this Section 15.7, the term “Tenant’s
Costs”shall mean
the reasonable and customary actual costs of the following items incurred by
Tenant in connection with an assignment or subletting: broker’s fees and
commissions paid to unaffiliated brokers, and advertising and promotional
expenses; legal fees, charges and disbursements; costs of improvements to
prepare the space for occupancy by the subtenant or assignee; the value of rent
concessions to a subtenant (at Tenant’s rental cost under this Lease); Tenant’s
demising costs;

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Tenant’s
payments and expenses or assumption of obligations relating to the assignee’s
or subtenant’s existing lease obligations; and any real property transfer and
transfer gains tax or other similar taxes imposed on Tenant on account of such
assignment or sublease by the City of New York or State of New York.

15.8.                 If Landlord shall enter into a
lease for the portion of the demised premises recaptured by Landlord after the
acceptance by Landlord of an offer under Section 15.6(a) or (b) hereof, then
Landlord shall pay Tenant, as and when received, fifty (50%) percent of any
consideration or rents in excess of the amount of fixed annual rent and
additional rent due from Tenant hereunder (such excess is hereinafter referred
to as “Landlord’s Excess Rent”)received by Landlord in connection with
such lease, after deducting from such Landlord’s Excess Rent the amount of “Landlord’s Costs”.For purposes of this Section 15.8, the
term “Landlord’s Costs”shall mean the reasonable and customary
actual costs of the following items incurred by Landlord in connection with a
lease: broker’s fees and commissions paid to unaffiliated brokers, and
advertising and promotional expenses; legal fees, charges and disbursements;
costs of improvements to prepare the space for occupancy by the tenant; the
value of rent concessions to a tenant (at Tenant’s rental cost under this
Lease); Landlord’s demising costs; Landlord’s payments and expenses or
assumption of obligations relating to the tenant’s existing lease obligations;
and any real property transfer and transfer gains tax or other similar taxes
imposed on Landlord on account of such assignment or sublease by the City of
New York or State of New York.

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ARTICLE 16

ACCESS TO DEMISED PREMISES; CHANGES

16.1.                 Tenant
shall permit Landlord to erect, use and maintain pipes, ducts and conduits in
and through the demised premises, provided the same are installed adjacent to
or concealed behind walls and ceilings of the demised premises and are
installed by such methods and at such locations as will not interfere with or
impair Tenant’s layout or use of the demised premises except to a de minimis
extent, and provided Landlord repairs any damage caused thereby and restores
the demised premises to their immediately prior condition. To the extent any
such pipes, ducts and conduits are not concealed behind walls or ceilings of
the demised premises, Landlord shall decorate or “box-in” the portions thereof
which are not so concealed so as to make same visually consistent with the
remainder of the demised premises. Landlord or its agents or designees shall
have the right, but only upon at least 24 hours prior notice (excluding
emergencies) to Tenant or any authorized employee of Tenant at the demised
premises, to enter the demised premises, other than vaults or other enclosures
where money, securities or other valuables or confidential documents are kept,
at reasonable times during business hours, for the making of such repairs as
Landlord may deem reasonably necessary for the Building or which Landlord shall
be required to or shall have the right to make by the provisions of this Lease
or any other lease in the Building for the performance of the work set forth in
the first and second sentences of this Section 16.1 and, subject to the
foregoing, shall also have the right to enter the demised premises for the
purpose of inspecting them or exhibiting them to prospective purchasers or
lessees of the entire Building or to prospective mortgagees of the fee or of
the Landlord’s interest in the property of which the demised premises are a
part or to prospective assignees of any such mortgages or to the holder of any
mortgage on Landlord’s interest in the property, its agents or designees.
Landlord shall be allowed to take all material into and upon the demised
premises that may be required for the repairs or work above mentioned as the
same is required for such purpose without the same constituting an eviction of
Tenant in whole or in part, and the rent reserved shall in no wise abate,
except as otherwise provided in this Lease, while said repairs are being made,
or said work is being performed, by reason of loss or interruption of the
business of Tenant because of the prosecution of any such work, provided
Landlord diligently proceeds therewith and exercises reasonable diligence so as
to minimize the disturbance. Except in the case of an emergency, Tenant shall
have the right to require that a representative of Tenant accompany Landlord
during Landlord’s entrance upon the demised premises.

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

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

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

16.5.                 If
Tenant shall not be personally present to open and permit an entry into the
demised premises at any time when for any reason an entry therein shall be
urgently necessary by reason of fire or other emergency, Landlord or Landlord’s
agents may forcibly enter the same without rendering Landlord or such agents
liable therefor (if during such entry Landlord or Landlord’s agents shall
accord reasonable care to Tenant’s property) and without in any manner
affecting the obligations and covenants of this Lease.

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ARTICLE 17

CERTIFICATE OF OCCUPANCY

17.1.                 Tenant
will not at any time use or occupy the demised premises in violation of the
Certificate of Occupancy issued for the Building (the “Certificate of Occupancy”),a true and complete copy of which is
attached hereto as Exhibit G.

17.2.                 Landlord agrees that during the
term of this Lease, Landlord shall not change or seek to change the Certificate
of Occupancy in a manner which would (a) adversely affect Tenant’s use of the
demised premises for general and executive offices and ancillary uses incident
thereto or (b) decrease the maximum number of persons which may occupy the
demised premises.

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ARTICLE 18

BANKRUPTCY

18.1.                 Subject to the provisions of
Section 18.3 hereof, if at any time prior to the Commencement Date there shall
be filed by or against Tenant in any court pursuant to any statute either of
the United States or of any State a petition in bankruptcy or insolvency or for
reorganization or for the appointment of a receiver or a trustee of all or a
portion of Tenant’s property, or if Tenant makes an assignment for the benefit
of creditors, or petitions for or enters into an arrangement with creditors,
this Lease shall ipso facto be canceled and terminated, in which event neither
Tenant nor any person claiming through or under Tenant or by virtue of any
statute or of an order of any court shall be entitled to possession of the
demised premises and Landlord, in addition to the other rights and remedies
given by Section 18.4 hereof and by virtue of any other provision herein or
elsewhere in this Lease contained or by virtue of any statute or rule of law,
may retain as liquidated damages any rent, security deposit or monies received
by it from Tenant or others in behalf of Tenant.

18.2.                 Subject to the provisions of
Section 18.3 hereof, if at the Commencement Date or if at any time during the
term hereby demised there shall be filed by or against Tenant in any court
pursuant to any statute either of the United States or of any State a petition
in bankruptcy or insolvency or for reorganization or for the appointment of a
receiver or trustee of all or a portion of Tenant’s property, or if Tenant
makes an assignment for the benefit of creditors, or petitions for or enters
into an arrangement with creditors, Landlord may, at Landlord’s option, serve
upon Tenant or any such trustee, receiver, or assignee, a notice in writing
stating that this Lease and the term hereby granted shall cease and expire on
the date specified in said notice, which date shall be not less than ten days
after the serving of said notice, and this Lease and the term hereof shall then
expire on the date so specified as if that date had originally been fixed in
this Lease as the expiration date of the term herein granted. Thereupon, neither
Tenant nor any person claiming through or under Tenant by virtue of any statute
or of an order of any court shall be entitled to possession or to remain in
possession of the demised premises but shall forthwith quit and surrender the
demised premises, and Landlord, in addition to the other rights and remedies
given by Section 18.4 hereof and by virtue of any other provision herein or
elsewhere in this Lease contained or by virtue of any statute or rule of law,
may retain as liquidated damages any fixed annual rent, additional rent,
security deposit or monies received by it from Tenant or others in behalf of
Tenant.

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18.3.                 In
the event that during the periods set forth in Sections 18.1 and 18.2 hereof
there shall be instituted against Tenant an involuntary proceeding for
bankruptcy, insolvency, reorganization or any other relief described in Section
18.1 and/or 18.2 hereof, Tenant shall have ninety (90) days in which to vacate
or stay the same before this Lease shall terminate or before Landlord shall
have any right to terminate this Lease, provided the fixed annual rent and
additional rent then in arrears, if any, are paid within fifteen (15) days
after the institution of such proceeding, and further provided that the fixed
annual rent and additional rent which shall thereafter become due and payable
are paid when due, and Tenant shall not otherwise be in default in the
performance of the terms and covenants of this Lease.

18.4.                 In the event of the termination
of this Lease pursuant to Sections 18.1, 18.2 or 18.3 hereof, Landlord 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 rent reserved hereunder for the unexpired
portion of the term demised and the then fair and reasonable rental value of
the demised premises for the same period, if lower than the rent reserved at
the time of termination. If such demised premises or any part thereof be re-let
by Landlord 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 re-letting shall be prima facie
the fair and reasonable rental value for the part or the whole of the demised
premises so re-let during the term of the re-letting. Nothing herein contained
shall limit or prejudice the right of Landlord 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.

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ARTICLE 19

DEFAULT

19.1.                 If

(i)               Tenant
shall default in the payment when due of the fixed annual rent reserved herein
or any item of additional rent herein provided or any other payment herein
provided, then upon Landlord serving a written five (5) days’ notice upon
Tenant specifying the nature of said default and upon expiration of said five
(5) day period, if Tenant shall have failed to remedy such default within such
five (5) day period, or

(ii)              Tenant
defaults in fulfilling any of the covenants of this Lease, other than the
payment of fixed annual rent or additional rent (for default of which clause
(i) of this Section 19.1 is applicable), or if the demised premises become
abandoned, then, in any one or more of such events, upon Landlord serving a written
thirty (30) days’ notice upon Tenant specifying the nature of said default and
upon the expiration of said thirty (30) 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 such a nature that the same cannot be completely
cured or remedied within said thirty (30) day period and if Tenant shall not
have diligently commenced to take action towards curing such default within
such thirty (30) day period and shall not thereafter with reasonable diligence
and in good faith proceed to remedy or cure such default (the aforesaid thirty
(30) days’ notice and time to cure shall be five (5) days rather than thirty
(30), with respect to default by Tenant under Article 17 hereof, Certificate of
Occupancy, or Article 36 hereof, Certificate of Tenant), or

(iii)             any
execution or attachment shall be issued against Tenant or any of Tenant’s
property whereupon the demised premises shall be occupied by someone other than
Tenant and such occupancy shall continue for a period of sixty (60) days after
written notice from Landlord,

then Landlord may serve a written five (5)
days’ notice of cancellation of this Lease upon Tenant, and, upon the
expiration of said five (5) days, this Lease and the term hereunder shall end
and expire as fully and completely as if the date of expiration of such five
(5) day period were the day herein definitely fixed for the end and expiration
of this Lease and the term hereof and Tenant shall then quit and surrender the demised
premises to Landlord but Tenant shall remain liable as hereinafter provided.
Landlord hereby agrees that simultaneously with the sending of any notice of
default to Tenant, Landlord

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shall send a
copy of such notice of default to Guarantor (as hereinafter defined), provided,
however, failure of Landlord to so send any such notice to Guarantor shall in
no way void, vitiate or otherwise impair any notice of default delivered to
Tenant or extend or delay any grace or cure period set forth herein.

19.2.                 If the notices provided for in
Section 19.1 hereof shall have been given, and the term shall expire as
aforesaid, Landlord may, without notice, re-enter the demised premises either
by force or otherwise, and dispossess Tenant, the legal representatives of
Tenant or other occupant of the demised premises, by summary proceedings or
otherwise, and remove their effects and hold the demised 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.

19.3.                 Notwithstanding any expiration
or termination prior to the Lease expiration date as set forth in this Article
19, Tenant’s obligation to pay any and all fixed annual rent and additional
rent under this Lease shall continue to and cover all periods up to the date
provided in this Lease for the expiration of the term hereof.

19.4.                 Notwithstanding the provisions
of Section 19.1 hereof, Tenant, at its own cost and expense, in its name and/or
(wherever necessary) Landlord’s name, may contest, in any manner permitted by
law (including appeals to a court, or governmental department or authority
having jurisdiction in the matter), the validity or the enforcement of any
governmental act, regulation or directive with which Tenant is required to
comply pursuant to this Lease, and may defer compliance therewith provided
that:

(a)    such non-compliance shall not subject
Landlord to criminal prosecution or subject the land and/or Building of the
building project to lien or sale;

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

(c)    Tenant shall indemnify, protect and hold
harmless Landlord against any loss or injury by reason of such non-compliance
and if Tenant does not meet its requirements set forth in Article 46 hereof,
then Tenant shall first deliver to Landlord a surety bond issued by a surety
company of recognized responsibility, or other security satisfactory to
Landlord, indemnifying and protecting Landlord against any loss or injury by
reason of such non-compliance; and

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

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

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ARTICLE 20

REMEDIES OF LANDLORD; WAIVER OF REDEMPTION

20.1.                 In
case of any such re-entry, expiration and/or dispossess by summary proceedings
or otherwise as set forth in Article 19 hereof (a) the rent shall become due
thereupon and be paid up to the time of such re-entry, dispossess and/or
expiration, together with such expenses as Landlord may incur for legal
expenses, reasonable attorneys’ fees, brokerage, and/or putting the demised
premises in good order, or for preparing the same for rental; (b) Landlord may
re-let the demised premises or any part or parts thereof, either in the name of
Landlord or otherwise, for a term or terms, which may at Landlord’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; and
(c) Tenant shall also pay Landlord as liquidated damages for the failure of
Tenant to observe and perform said Tenant’s covenants herein contained the
amounts provided for in either item (1) or, at the election of Landlord, item
(2) and, in addition thereto, the amounts provided for in item (3). Said items
are as follows:

(1)    A
sum which, at the time of such expiration or re-entry, as the case may be,
represents the then value (using a discount rate of five (5%) percent per
annum) of the excess of the aggregate of the fixed annual rent and any
regularly payable additional rent hereunder which would have been payable by
Tenant for the period commencing with such expiration or re-entry, as the case
may be, and ending on the originally fixed expiration date of the term of this
Lease, over the aggregate rental value of the demised premises for the same
period (which sum is sometimes hereinafter called “the lump sum payment”).

(2)    Sums
equal to 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
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 or refusal of Landlord to re-let the demised premises or any parts
thereof shall not release or affect Tenant’s liability for damages. Any such
liquidated damages shall be paid in monthly installments by Tenant on the rent
days specified in this Lease and any suit or proceeding brought to collect the
amount of the deficiency for any month shall not prejudice in any way the
rights of Landlord to collect the deficiency for any subsequent month by a
similar suit or proceeding.

(3)    In
computing such liquidated damages there shall be added to the said deficiency,
or lump sum payment, as the case may be, such expenses as Landlord may incur in
connection with re-letting, such as legal expenses, reasonable attorneys’ fees,

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brokerage, and for keeping the demised premises in good order or for
preparing the same for re-letting.

In no event shall Tenant
be entitled to receive the excess, if any, of any rentals from re-letting over
the sums payable by Tenant to Landlord hereunder, nor shall Tenant be entitled
in any suit for the collection of damages pursuant to this Article 20 to a
credit in respect of rentals from re-letting except to the extent that such
rentals are actually received by Landlord. No such re-letting shall constitute
or be deemed to constitute a surrender or the acceptance of a
surrender.

Landlord, at Landlord’s
option, may make such alterations, repairs, replacements and/or decorations in
the demised premises as Landlord, in Landlord’s sole judgment, considers
advisable and necessary for the purpose of re-lettingthe demised premises; and the making of such alterations
and/or decorations shall not operate or be construed to release Tenant from
liability hereunder as aforesaid. Landlord shall in no event be liable in any
way whatsoever for failure or refusal to re-let the demised premises or any
parts thereof, or, in the event that the demised premises are re-let, for
failure to collect the rent thereof under such re-letting. In the event of a
breach or threatened breach by Tenant of any of the covenants or provisions
hereof, Landlord shall have the right of injunction and the right to invoke any
remedy allowed at law or in equity as if re-entry, summary proceedings and
other remedies were not herein provided for. Mention in this Lease of any
particular remedy shall not preclude Landlord from any other remedy allowed at
law or in equity.

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

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ARTICLE 21

FEES AND EXPENSES;
INTEREST; TENANT’S RIGHT TO CURE

21.1.                 If Tenant shall default in the
observance or performance of any term or covenant on Tenant’s part to be
observed or performed under or by virtue of any of the terms or provisions in
any Article of this Lease, (a) Landlord may remedy such default for the account
of Tenant, immediately and without notice in case of emergency, or in any other
case only provided that Tenant shall fail to remedy such default with all
reasonable dispatch after Landlord shall have notified Tenant in writing of
such default and the applicable grace period for curing such default shall have
expired; and (b) if Landlord makes any expenditures or incurs any obligations
for the payment of money in connection with such default including, but not
limited to, reasonable attorneys’ fees in instituting, prosecuting or defending
any action or proceeding, such sums paid or obligations incurred, with interest
at the Prime Rate, shall be deemed to be additional rent hereunder and shall be
paid by Tenant to Landlord upon rendition of a bill to Tenant therefor.

21.2.                 If Landlord shall default in the
observance or performance of any term or covenant on Landlord’s part to be
observed or performed under or by virtue of any of the terms or provisions of
this Lease, Tenant shall notify Landlord of the specific items comprising such
default (a “First Notice”). If such default (a “Material Default”) results in a
material interference with Tenant’s use, access to or occupancy of all or any
portion of the demised premises, Landlord shall commence cure of such Material
Default within three (3) business days of the First Notice and Landlord shall
diligently prosecute such cure to completion. With respect to all defaults of
Landlord not constituting a Material Default, Landlord shall commence cure of
such default within a reasonable period of time following receipt of a First
Notice (but in no event shall such period of time afforded Landlord to so
commence to cure be more than seven (7) days after receipt of a First Notice).
If Landlord shall fail to commence cure of a default as aforesaid or diligently
prosecute such cure to completion, Tenant shall (a) with respect to a Material
Default, have the right to cure such default immediately and shall be
reimbursed as set forth in the immediately following sentence, and (b) with
respect to all other defaults, notify Landlord (a “Second Notice”) of Tenant’s intent to remedy the uncured
Landlord default, and shall specifically identify the proposed course of action
to be taken by Tenant in said Second Notice. If Landlord shall not commence the
cure of the items set forth in a Second Notice within ten (10) days of receipt
thereof, and thereafter diligently prosecute such cure to completion, Tenant
shall have the right to remedy such uncured default for the account of
Landlord, and if Tenant makes any reasonable expenditures in connection with
such cure, Tenant shall submit

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invoices, showing payment thereof, to
Landlord and Landlord shall reimburse Tenant therefor, with interest at the
Prime Rate from the date of payment by Tenant, within thirty (30) days of
receipt of such invoices. In the event of an emergency, Tenant shall not be
obligated to deliver a First Notice and may, but shall not be obligated to,
cure such emergency and be reimbursed for expenditures incurred in curing such
emergency as set forth in the immediately preceding sentence. Notwithstanding
anything to the contrary contained in this Section 21.2, in no event whatsoever
shall Tenant have the right, at any time, to exercise the rights granted Tenant
in this Section 21.2 with respect to matters affecting the common or public
portions of the Building, the structural elements of the Building, or the HVAC,
mechanical, electrical, plumbing, safety, or other systems in the Building or
any areas of the Building outside of the demised premises.

21.3.                 In
the event of a breach or threatened breach by Landlord of any of the covenants
or provisions hereof, Tenant shall have the right of injunction and the right
to invoke any remedy allowed at law or in equity as if no remedies were
provided for herein. Mention in this Lease of any particular remedy shall not
preclude Tenant from any other remedy allowed at law or in equity.

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ARTICLE 22

NO REPRESENTATIONS BY LANDLORD

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

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ARTICLE 23

END OF TERM

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

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ARTICLE 24

QUIET
ENJOYMENT

24.1.                 Landlord covenants and agrees
that subject to the terms and provisions of this Lease, if, and so long as,
Tenant keeps and performs each and every covenant, agreement, term, provision
and condition herein contained on the part or on behalf of Tenant to be kept or
performed, then Tenant’s rights under this Lease shall not be cut off or ended
before the expiration of the term of this Lease.

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ARTICLE 25

DEFINITIONS

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

25.2.                 The words “re-enter”and “re-entry”as used in this Lease are not restricted
to their technical legal meaning.

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

25.4.                 Intentionally Deleted.

25.5.                 The term “Prime Rate”as used in this Lease shall be deemed to mean the prime rate
as announced from time to time by The Chase Manhattan Bank.

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ARTICLE 26

ADJACENT
EXCAVATION — SHORING

26.1.                 If
an excavation or other substructure work shall be made upon land adjacent to
the demised premises, or shall be authorized to be made, Tenant shall afford to
the person causing or authorized to cause such excavation, license to enter
upon the demised premises for the purpose of doing such work as shall be
necessary to preserve the wall of or the Building of which the demised premises
form a part from injury or damage and to support the same by proper foundations
without any claim for damages or indemnity against Landlord, or diminution or
abatement of rent.

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ARTICLE 27

RULES AND
REGULATIONS

27.1.                 Tenant
and Tenant’s servants, employees and agents shall observe faithfully and comply
strictly with the Rules and Regulations set forth in Exhibit H attached hereto and made part
hereof entitled “Rules and Regulations”
and such other and further reasonable Rules and Regulations as Landlord or
Landlord’s agents may from time to time adopt, provided, however, that in case
of any conflict or inconsistency between the provisions of this Lease and of
any of the Rules and Regulations as originally or as hereafter adopted, the
provisions of this Lease shall control. Reasonable written notice of any
additional Rules and Regulations shall be given to Tenant.

Landlord
shall not enforce or fail to enforce any Rules and Regulations so as to apply
the same to Tenant in a discriminatory manner. Landlord shall not be liable to
Tenant for violation of the same by any other tenant, its servants, employees,
agents, visitors or licensees.

Landlord
shall not unreasonably withhold from Tenant any approval provided for in the
Rules and Regulations and shall exercise its judgment in good faith.

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ARTICLE 28

NO WAIVER

28.1.                 No
agreement to accept a surrender of this Lease shall be valid unless in writing
signed by Landlord. No employee of Landlord or of Landlord’s agents shall have
any power to accept the keys of the demised premises prior to the termination
of this Lease. The delivery of keys to any employee of Landlord or of Landlord’s
agent shall not operate as a termination of this Lease or a surrender of the
demised premises. In the event of Tenant at any time desiring to have Landlord
sublet the demised premises for Tenant’s account, Landlord or Landlord’s agents
are authorized to receive said keys for such purpose without releasing Tenant
from any of the obligations under this Lease. The failure of Landlord or
Tenant, as the case may be, to seek redress for violation of, or to insist upon
the strict performance of, any covenant or condition of this Lease or any of
the Rules and Regulations set forth herein, or hereafter adopted by Landlord
shall not prevent a subsequent act, which would have originally constituted a
violation, from having all the force and effect of any original violation. The
receipt by Landlord of rent with knowledge of the breach of any covenant of
this Lease shall not be deemed a waiver of such breach. The failure of Landlord
to enforce any of the Rules and Regulations set forth herein, or hereafter
adopted, against Tenant and/or any other tenant in the Building shall not be
deemed a waiver of any such Rules and Regulations. No provision of this Lease
shall be deemed to have been waived by Landlord, unless such waiver be in
writing signed by Landlord. No provision of this Lease shall be deemed to have
been waived by Tenant, unless such waiver be in writing signed by Tenant. No
payment by Tenant or receipt by Landlord of a lesser amount than the monthly
rent herein stipulated shall be deemed to be other than on the account of the
earliest stipulated rent, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment of rent be deemed an accord and
satisfaction, and Landlord may accept such check or payment without prejudice
to Landlord’s right to recover the balance of such rent or pursue any other
remedy in this Lease provided.

28.2.                 This
Lease contains the entire agreement between the parties, and any executory
agreement hereafter made shall be ineffective to change, modify, discharge or
effect an abandonment of it in whole or in part unless such executory agreement
is in writing and signed by the party against whom enforcement of the change,
modification, discharge or abandonment is sought.

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ARTICLE 29

WAIVER OF TRIAL BY
JURY

29.1.                 Landlord
and Tenant do hereby waive trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the other on any
matters whatsoever arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, Tenant’s use or occupancy of the demised
premises, and any emergency statutory or any other statutory remedy, provided,
however, claims for personal injury or property damage shall not be covered by
this Article 29. It is further mutually agreed that in the event Landlord
commences any summary proceeding for non-payment of rent, Tenant will not
interpose and does hereby waive the right to interpose any counterclaim of
whatever nature or description in any such proceeding, except for any
counterclaims which will be permanently barred or waived if not interposed in
such proceeding. The provisions of this Article 29 shall survive any expiration
or termination of this Lease.

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ARTICLE 30

INABILITY TO PERFORM

30.1.                 If,
by reason of (1) strike, (2) labor troubles, (3) governmental pre-emption in
connection with a national emergency, (4) any rule, order or regulation of any
governmental agency, (5) conditions of supply or demand which are affected by
war or other national, state or municipal emergency, or (6) any cause beyond
Landlord’s reasonable control, Landlord shall be unable to fulfill its
obligations under this Lease or shall be unable to supply any service which
Landlord is obligated to supply, this Lease and Tenant’s obligation to pay rent
hereunder shall in no wise be affected, impaired or excused.

30.2.                 If,
by reason of: (a) strike, (b) labor troubles, (c) governmental preemption in
connection with a national emergency, (d) any rule, order or regulation of any
governmental agency, (e) conditions of supply or demand which are affected by
war or other national, state or municipal emergency, or (f) any cause beyond
Tenant’s reasonable control, Tenant shall be unable to fulfill any non-monetary
obligation (i.e., any obligation other than the obligation to pay a sum of
money) under this Lease, this Lease and Landlord’s obligations hereunder shall
in nowise be affected, impaired or excused, and Tenant’s obligation to perform
any such non-monetary obligation shall be excused only for the period during
which such event prevents such performance despite Tenant’s reasonably diligent
efforts.

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ARTICLE 31

NOTICES

31.1.                 Any
notice or demand, consent, approval or disapproval, or statement required to be
given by the terms and provisions of this Lease, or by any law or governmental
regulation, either by Landlord to Tenant or by Tenant to Landlord, shall be in
writing. Unless otherwise required by such law or regulation, such notice or
demand shall be given, and shall be deemed to have been served and given by
Landlord and received by Tenant, upon receipt thereof by Tenant or upon the
first refusal of delivery thereof by Tenant. Notice may be delivered by
registered or certified mail enclosed in a securely closed post-paid wrapper,
deposited in a United State Government general or branch post office, or
official depository with the exclusive care and custody thereof, by a
nationally recognized overnight courier with an invoice evidencing receipt, or
by personal delivery (provided written acknowledgment of receipt is given),
addressed to Tenant, at the address set forth after Tenant’s name on page 1 of
this Lease, with a copy to Tenant at such address, Attention: General Counsel.
After Tenant shall occupy the demised premises, the address of Tenant for
notices, demands, consents, approvals or disapprovals shall be the Building,
with a copy to Tenant at the Building, Attention: General Counsel. Such notice,
demand, consent, approval or disapproval shall be given, and shall be deemed to
have been served and given by Tenant and received by Landlord, upon receipt
thereof by Landlord or upon the first refusal of delivery thereof by Landlord.
Notices may be delivered by registered or certified mail enclosed in a securely
closed post-paid wrapper, deposited in a United States Government general or
branch post office or official depository with the exclusive care and custody
thereof, by a nationally recognized overnight courier with an invoice
evidencing receipt, or by personal delivery (provided written acknowledgment of
receipt is given), addressed to Landlord, c/o Fisher Brothers at 299 Park
Avenue, New York, New York with a copy to Fisher Brothers, 299 Park Avenue, New
York, New York, Attention: General Counsel. Either party may, by notice as
aforesaid, designate a different address or addresses for notices, demands,
consents, approvals or disapprovals. If any notice is received by Landlord or
Tenant after 5:00 P.M. on any day, then such notice shall be deemed delivered
on the next following business day.

31.2.                 In
addition to the foregoing, either Landlord or Tenant may, from time to time,
request in writing that the other party serve a copy of any notice or demand,
consent, approval or disapproval, or statement, on one other person or entity
designated in such request, such service to be effected, as provided in Section
31.1 hereof, by any of the methods provided therein.

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ARTICLE 32

SERVICES

32.1.                 Landlord
shall provide necessary elevator facilities including reasonable freight elevator
service, on business days from 8:00 A.M. to 6:00 P.M. and shall have sufficient
passenger elevators available at all other times; provided, in no event
(subject to Section 32.3 below) shall Landlord have available less than four
(4) passenger elevators from 8:00 A.M. to 6:00 P.M. on each business day, and
less than two (2) passenger elevators at all other times. At Landlord’s option,
the elevators shall be operated by automatic control or by manual control, or
by a combination of both of such methods. Landlord will provide Tenant with
after-hours freight elevator service at Landlord’s then established rates in
the Building for same and pursuant to Landlord’s Rules and Regulations.

Notwithstanding
anything to the contrary contained in this Article 32, Landlord shall provide
freight elevator service to Tenant at no charge to Tenant during the
performance of Tenant’s Work and during Tenant’s initial move-in even though
same may be performed after business hours.

32.2.                 (a)
Landlord shall, through the air conditioning system of the Building, furnish
air conditioning, ventilation and heating to the demised premises meeting the
specifications set forth on Exhibit I attached
hereto, on an all-year-round basis, during such hours on business days as
Landlord shall from time to time determine, by notice to Tenant, to be the
regular hours of operation of such systems. Such regular hours of operation
shall at least include the hours from 8:00 A.M. to 6:00 P.M. and shall exclude
the hours between 9:00 P.M. and 8:00 A.M.

(b)    Landlord
will maintain the air conditioning system in a manner befitting a first class
building and will use all reasonable care to keep the same in proper and
efficient operating condition.

(c)    Tenant
agrees to keep and cause to be kept closed all the windows in and the doors to
the demised premises at all times, and Tenant agrees to cooperate fully with
Landlord and to abide by all the regulations and requirements which Landlord
may reasonably prescribe for the proper functioning and protection of said air
conditioning systems.

(d)    Tenant
acknowledges it has been advised that the Building has sealed windows and that,
therefore, the air in the demised premises can become stale and even
unbreathable when the ventilating, air-conditioning, and heating system is not
operating. Tenant agrees that Landlord shall not be obligated to

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operate such ventilating, air-conditioning, and
heating system after or before its regular hours of operation as provided in
subdivision (a), except after prior written notice from and payment by Tenant
as hereinafter specified. Tenant agrees that Landlord’s failure to operate such
system in the absence of such notice and payment shall not be deemed a partial
or other eviction, or disturbance of Tenant’s use, enjoyment, or possession of
the demised premises, and shall not render Landlord liable for damages, by
abatement of rent or otherwise, and Tenant shall not be relieved from any
obligation under this Lease.

Landlord
will upon reasonable advance notice provide Tenant with ventilation, air
conditioning, or heating at times other than its regular hours of operation of
said systems as provided in subdivision (a) at the current rate (for calendar
year 1998) of $772.94 per hour per air conditioning zone in the Building (which
charges shall be increased annually based on the percentage increase in
Expenses over and above the Expenses for the prior year) payable by Tenant as
additional rent within thirty (30) days of being billed therefor. The Building
is comprised of two (2) zones; one zone services floors 2 to 12, inclusive, and
the other includes all of floors 14 through 44. If any other tenant or tenants
of the Building located in the same Building air-conditioning zone request
overtime ventilation, air conditioning or heating for any period for which
Tenant has requested such service, then the foregoing charges (as the same may
be increased hereunder) shall be pro rated among Tenant and such other tenants
in the same air conditioning zone in the Building based upon the square footage
in such zone of Tenant and such other tenants receiving such overtime
ventilation, air conditioning or heating during the same period. Provided
Tenant complies with Legal Requirements and any relevant provisions of this
Lease, Tenant shall have the right (at its own cost and expense) to install a
supplemental air conditioning system in the demised premises, which
supplemental air conditioning system shall be permitted to operate twenty-four
(24) hours per day, seven (7) days per week. Landlord shall provide Tenant
with, and Tenant agrees to purchase from Landlord, up to thirty (30) tons of
supplemental air conditioning for the supplemental air conditioning needs of
Tenant, at the current rate (for calendar year 1998) of $1,008.00 per ton per
annum connected based on 2.5 gallons of condenser water per minute per ton
(which charges for the supplemental air conditioning needs of Tenant shall be
increased annually based upon the percentage increases in Expenses over and
above the Expenses for the prior year) payable by Tenant as additional rent
within thirty (30) days of being billed therefor. Tenant agrees and
acknowledges that Landlord’s obligation to furnish all or any portion of such
thirty (30) tons of supplemental air conditioning shall be conditioned upon
Tenant notifying Landlord in writing within thirty (30) days after the
Occupancy Date of the amount of tons of supplemental air conditioning, up to
thirty (30) tons, Tenant desires to reserve

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for Tenant’s supplemental air conditioning needs.
Should Tenant fail to deliver the notice set forth in the immediately preceding
sentence, then Tenant shall be deemed to have reserved no supplemental air
conditioning, and should Tenant thereafter require supplemental air
conditioning, Landlord shall only be required to fulfill such needs on an “as
available” basis at Landlord’s then current rate (such rate subject to increase
as set forth herein). In addition, Tenant agrees and acknowledges that if, and
to the extent, Tenant elects to utilize less than such thirty (30) tons, then,
in such event, Landlord shall not be obligated to provide to Tenant the
remainder thereof, but Landlord shall only fulfill any additional needs on an “as
available” basis at Landlord’s then current rate (such rate subject to increase
as set forth herein). Tenant shall not be responsible for the cost and expense
of “tap-in” charges for the installation of a supplemental air conditioning
system, provided Tenant shall be responsible for the cost and expense of the
connection to the existing risers of such supplemental air conditioning system.
Landlord shall make available to Tenant a fresh-air source through louvres to
be located in a location designated by Landlord in the curtain wall on the east
wall of the Building.

32.3.                 Subject
to its obligations under Section 32.1 hereof, Landlord reserves the right to
stop services on the air conditioning, elevator, plumbing, electric and other
systems when necessary by reason of accident or emergency or for repairs,
alterations, replacements or improvements, provided that except in case of
emergency, Landlord will notify Tenant in advance, if possible, of any such
stoppage and, if ascertainable, its estimated duration, and will proceed
diligently with the work necessary to resume such service as promptly as
possible and in a manner so as to minimize interference with the Tenant’s use
and enjoyment of the demised premises.

32.4.                 Landlord
will supply Tenant at Landlord’s expense with an adequate quantity of hot and
cold water for ordinary lavatory, drinking, cleaning and pantry purposes (the
parties hereto agree that Tenant is permitted to install (a) two (2) pantries
on each floor of the demised premises (for purposes of this Section 32.4, each
pantry may include an ice-maker, refrigerator, microwave oven, dishwasher,
coffee maker and/or sink), and (b) two (2) executive bathrooms (including a
shower in each bathroom) in the demised premises) and with respect to which
Tenant shall have the right to tap into Landlord’s existing toilet exhaust
riser; provided, that all costs and expenses associated with said “tapping in”
(including, without limitation, the cost and expense related to balancing of
the exhaust system), shall be borne solely by Tenant. Should Tenant require or
consume water for any purpose in addition to those purposes enumerated in the
preceding sentence, Tenant shall pay Landlord a reasonable charge therefor and
for any required pumping or

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heating thereof, as well as any taxes, sewer rents or
other charges which may be imposed by any governmental authority based on the
quantity of water so used by Tenant. Should Tenant require or consume water for
any additional purpose, Landlord may elect to install a water meter, at Tenant’s
expense and thereby measure Tenant’s water consumption for all such additional
purposes, said meter to be maintained at Tenant’s expense.

32.5.                 It
is expressly agreed that only Landlord or any one or more persons, firms or
corporations authorized in writing by Landlord will be permitted to furnish:
laundry, linen, towels, drinking water, ice and other similar supplies and
services to tenants and licensees in the Building.

Landlord
may fix, in its own reasonable discretion, at any time and from time to time,
the hours during which and regulations under which such supplies and services
are to be furnished. Landlord furthermore expressly reserves the right to
exclude from the Building any person, firm or corporation attempting to furnish
any of said supplies or services not previously approved by Landlord (Landlord’s
approval not to be unreasonably withheld, conditioned or delayed).

32.6.                 It
is expressly agreed that any one or more persons, firms or corporations
approved in writing by Landlord (which approval shall not be unreasonably
withheld, conditioned or delayed), will be permitted to sell, deliver or
furnish any food or beverages whatsoever for consumption within the demised
premises or elsewhere in the Building. Landlord expressly reserves the right to
approve (which approval shall not be unreasonably withheld, conditioned or delayed)
at any time, or from time to time, any supplier or suppliers of such food and
beverages; and Landlord further expressly reserves the right to exclude from
the Building any person, firm or corporation attempting to deliver or purvey
any such food or beverages not so previously approved by Landlord. It is
understood, however, that Tenant or employees of Tenant who are not employed by
any supplier of such food or beverages or by any person, firm or corporation
engaged in the business of purveying such food or beverages, may personally
bring food or beverages into the Building for consumption within the demised
premises by Tenant or employees of Tenant, but not for resale to or for
consumption by any other tenant, or the employees or guests of any other tenant.
Landlord may fix in its reasonable discretion, at any time and from time to
time, the hours during which, and the regulations under which food and
beverages may be brought into the Building by Tenant or its regular employees.

32.7.                 Tenant
acknowledges and understands that the cleaning contractor for the Building is
an entity under common control with Landlord and Tenant agrees to employ said
contractor or such other contractor as Landlord may from time to time

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designate for any waxing, polishing, lamp replacement
(excluding the initial installation of lamps during the performance of Tenant’s
Work), rug shampooing and other special cleaning or maintenance work that
Tenant may desire in the demised premises. Landlord represents that the quality
thereof shall be comparable to that of other contractors doing comparable work
in comparable buildings in the area of the Building. Tenant shall not employ
any other such contractor or individual without Landlord’s prior written
consent.

32.8.                 Landlord
will not be required to furnish any other services, except as provided in this
Article 32, and except that Landlord agrees to provide on business days the
cleaning set forth in Exhibit J
hereof. Landlord shall have no obligation to perform cleaning services in
those portions of the demised premises which are below grade, bank space, or
which are used for the preparation, dispensing or consumption of food or
beverages, for the operation of trading equipment or as private lavatories or
toilets, all of which portions Tenant shall cause to be kept clean at Tenant’s
cost and expense (other than the core bathrooms which are to be cleaned as set
forth in Exhibit J).Tenant shall pay to Landlord, on demand, a
reasonable charge for the removal from the demised premises of any refuse and
rubbish of Tenant as shall not be contained in waste receptacles of customary
office size and for the removal of refuse and rubbish of Tenant’s machines and
of eating facilities requiring special handling (known as wet garbage).
Landlord, its cleaning contractor and their employees shall have after-hours
access to the demised premises and the use of Tenant’s light, power and water
in the demised premises as may be reasonably required for the purpose of
cleaning the demised premises.

If
Tenant is permitted hereunder to and does have a separate area for the
preparation or consumption of food (which does not include an area for the
warming or heating of food) in the demised premises, Tenant shall pay to
Landlord the cost of employing on a regular basis an exterminator to keep the
demised premises free from vermin; and in the event that the amount of garbage
in the pantries in the demised Premises rises to a level as would normally be
found in a full-size kitchen, then Tenant shall provide a refrigerated garbage
storage room (the plans and specifications thereof to be approved by Landlord)
or other means of disposing of garbage reasonably satisfactory to Landlord.

32.9.                 Landlord
shall manage and maintain the Building as a first class office building. Tenant
and its employees shall occupy and use the demised premises in a manner
befitting such building.

32.10.               Tenant’s employees shall have
access into the Building twenty-four hours a day, seven (7) days a week, 365
days a year.

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32.11.               Landlord will, at the request of
Tenant, maintain listings on the Building directory in a segregated section
thereof, of the names of Tenant, its subsidiaries and the officers of Tenant in
occupancy of the demised premises or any part thereof as permitted hereunder,
provided, however, that the number of names so listed shall not exceed the
Percentage (as defined in Section 5.1(a)(iv) hereof) of the total capacity then
included in the Building directory, except that the resident officers of Tenant
shall be included in any instance so long as the number thereof does not
unreasonably exceed the Percentage of the total capacity in the Building
directory. The listing of any name other than that of Tenant, whether on the
doors of the demised premises, or on the Building directory or otherwise, shall
not operate to vest any right or interest in this Lease or in the demised
premises or to be deemed to be the written consent of Landlord set forth in
Article 15 hereof, it being understood that any such listing is a privilege
extended by Landlord and not a license or other right of any kind or nature.
The initial installation of directory listings, shall be at Landlord’s sole
cost and expense; any additional installations and any changes in the directory
listings shall be at Tenant’s sole cost and expense.

32.12.               In
the event services in the Building are interrupted due to the act or negligence
of Landlord and as a result thereof Tenant’s use and occupancy of the demised
premises are interfered with, Landlord shall use overtime labor, if necessary,
to restore such services, provided, such overtime costs may be subject to
recoupment under Article 5 of this Lease.

32.13.               Notwithstanding anything to the
contrary contained in this Lease, including Sections 30.1 and 32.3, should
Landlord fail to supply the services or perform its obligations required under
this Lease and such failure shall cause all or part of the demised premises to
be untenantable for the normal operation of Tenant’s business for seven (7)
consecutive days, then Tenant’s rent with respect to the portion(s) of the
demised premises so rendered untenantable will be equitably abated for each day
after the seven (7) day period during which the demised premises continue to be
so untenantable such that Tenant cannot operate its business in a commercially
reasonable manner so as to render the demised premises, or such portion
thereof, as the case may be, untenantable.

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ARTICLE 33

ARBITRATION

33.1.                 In
each case specified in this Lease in which resort to arbitration shall be
required, such arbitration (unless otherwise specifically provided in other
Sections of this Lease) shall be in New York City in accordance with the
Commercial Arbitration Rules of the American Arbitration Association and the
provisions of this Lease, and judgment upon the award rendered by the
arbitrators may be entered in any court having jurisdiction thereof.

33.2.                 Notwithstanding
anything in this Lease to the contrary, all disputes arising between Landlord
and Tenant as to whether Landlord unreasonably withheld, conditioned or delayed
its consent with regard to the provisions of Article 8 or Article 15 of this
Lease, may be determined, at Tenant’s option, under the Expedited Procedures
provisions of the Commercial Arbitration Rules of the American Arbitration
Association, as amended and effective January 1, 1999 (presently rules E-l
through E-10); provided, however, that such election shall be deemed a waiver
of any claim for damages which might otherwise be obtainable by Tenant under
Section 33.1 with respect to such matter, and provided, further, that with
respect to any such arbitration, (i) the list of arbitrators referred to in
Rule E-5 shall be returned within five (5) business days from the date of
mailing, (ii) the parties shall notify the American Arbitration Association, by
telephone, within four (4) days of any objections to the arbitrator appointed
and will have no right to object if the arbitrator so appointed was on the list
submitted by the American Arbitration Association and was not objected to in
accordance with Rule E-5(c), (iii) the Notice of Hearing referred to in Rule
E-8 shall be four (4) days in advance of the hearing date, (iv) the hearing
shall be held within seven (7) days after the appointment of the arbitrator,
and (v) the arbitrator shall have no right to award damages. The fees of the
arbitrator shall be paid in equal shares by Landlord and Tenant.

33.3.                 The
award of any arbitration shall be binding upon the parties and judgment may be
entered thereon in any court of competent jurisdiction. In rendering his/her
decision and award the arbitrator shall have no power to modify any of the
provisions of this Lease, and the jurisdiction of the arbitrator is limited
accordingly.

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ARTICLE 34

CONSENTS AND
APPROVALS

34.1.                 Wherever
in this Lease Landlord’s consent or approval is required, if Landlord shall
delay or refuse such consent or approval, Tenant in no event shall be entitled
to make, nor shall Tenant make, any claim, and Tenant hereby waives any claim,
for money damages (nor shall Tenant claim any money damages by way of set-off,
counterclaim or defense) based upon any claim or assertion by Tenant that
Landlord unreasonably withheld or unreasonably delayed its consent or approval.
Tenant’s sole remedy shall be an action or proceeding to enforce any such
provision, for specific performance, injunction or declaratory judgment or
expedited arbitration in accordance with Section 33.2 hereof. Notwithstanding
the foregoing, Tenant shall be entitled to money damages only with respect to a
claim that Landlord has unreasonably withheld or delayed its consent if it is
expressly determined in an action or proceeding (as opposed to an arbitration,
which the parties agree cannot result in an award for damages) that Landlord
has wilfully or arbitrarily withheld its consent in bad faith. The provisions
of this Section 34.1 shall not apply to those instances in which Landlord’s
consent or approval is requested by Tenant pursuant to Articles 8 and 15 of
this Lease.

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ARTICLE 35

INDEMNITY

35.1.                 Tenant
shall indemnify, defend and save Landlord harmless from and against any
liability or expense arising from the use or occupation of the demised premises
by Tenant or anyone in the demised premises with Tenant’s permission, or from
any breach of this Lease by Tenant, unless and to the extent such liability or
expenses are attributable to Landlord’s negligence.

35.2.                 Notwithstanding
anything to the contrary contained in this Lease, Landlord and Tenant each
hereby expressly waive the right to any consequential or punitive damages
awarded in or as the result of any proceeding alleging the failure of Landlord
or Tenant, as the case may be, to observe and perform any of the covenants and
conditions contained in this Lease or otherwise to be performed by Landlord or
Tenant, respectively.

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ARTICLE 36

CERTIFICATE OF
TENANT

36.1.                 Either
party shall, without charge, at any time and from time to time, within ten (10)
days after request by the other party, deliver a written instrument to the
requesting party or any other person, firm or corporation specified by such
requesting party, duly executed and acknowledged, certifying:

(a)    that this
Lease is unmodified and in full force and effect or, if there has been any
modification, that the same is in full force and effect as modified and stating
any such modification;

(b)    whether
the term of this lease has commenced and rent become payable thereunder; and
whether Tenant has accepted possession of the demised premises;

(c)    whether or
not there are then existing any defenses or offsets which are not claims under
paragraph (e) of this Section 36.1 against the enforcement of any of the
agreements, terms, covenants, or conditions of this Lease and any modification
thereof upon the part of Tenant to be performed or complied with, and, if so,
specifying the same; except that with respect to the certification to be given
to the mortgagee under the original first institutional permanent mortgage on
the fee or leasehold of the Building, Tenant shall affirm that any dispute with
the Landlord is a claim under this Lease and, if the Lease is subordinate to
any superior lease or superior mortgage in accordance with Article 11 of this
Lease, subordinate to the rights of the holder of the said mortgage and that
any such claim is not an offset or defense to the enforcement of this Lease,
and Tenant shall assert no offset to or defense against the enforcement of the
Lease (unless such offset or defense is expressly provided for in this Lease)
or its validity with respect to matters in existence at the time Tenant took
possession of the demised premises and which were known to Tenant, any such
matter to be the basis of a claim only, which claim shall be enforced solely by
money judgment and/or specific performance against the Landlord named herein;

(d)    the dates
to which the fixed annual rent, and additional rent, and other charges
hereunder, have been paid; and

(e)    whether or
not Tenant has made any claim against Landlord under this Lease and if so the
nature thereof and the dollar amount, if any, of such claim.

36.2.                 Tenant
agrees that, except for the first month’s rent hereunder, it will pay no rent
under this Lease more than thirty (30) days in advance of its due date, if so

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restricted by any existing or future ground lease or
mortgage to which this Lease is subordinated or by an assignment of this Lease
to the ground lessor or the holder of such mortgage, and, in the event of any
act or omission by Landlord, Tenant will not exercise any right to terminate
this Lease or to remedy the default and deduct the cost thereof from rent due
hereunder (other than any offset which Tenant may have with respect to the Work
Credit) until Tenant shall have given written notice of such act or omission to
the ground lessor and to the holder of any mortgage on the fee or the ground lease
who shall have furnished such lessor’s or holder’s last address to Tenant, and
until a reasonable time for remedying such act or omission shall have elapsed
following the giving of such notices, during which time such lessor or holder
shall have the right, but shall not be obligated, to remedy or cause to be
remedied such act or omission (which reasonable period shall in no event be (x)
less than the period to which Landlord would be entitled under this Lease or
otherwise, after similar notice, to effect such remedy and (y) more than 120
days from the date such holder or lessor shall have received such notice from
Tenant).

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ARTICLE 37

NAME OF BUILDING

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

37.2.                 If
Landlord voluntarily changes the designated address of the Building at any time
during the term of this Lease, then Landlord shall reimburse Tenant for Tenant’s
reasonable costs and expenses associated with Tenant changing its stationery,
brochures and other similar marketing materials, to reflect such new address.
Landlord shall not be obligated to reimburse Tenant for any costs or expenses
incurred by Tenant as set forth in the immediately preceding sentence if the
address of the Building is changed in order to comply with any Legal
Requirement which is not the result of any act or omission of Landlord.

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ARTICLE 38

MEMORANDUM OF
LEASE

38.1.                 Landlord
and Tenant shall, at the option and request of either party, execute and
deliver a statutory form of memorandum of this Lease for the purpose of
recording, but said memorandum of this Lease shall not in any circumstances be
deemed to modify or to change any of the provisions of this Lease.

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ARTICLE 39

BROKERAGE

39.1.                 Landlord
and Tenant represent and warrant to each other that neither party consulted nor
negotiated with any broker or finder with regard to the demised premises except
Williams Real Estate Co. Inc. (“Broker”).
Tenant agrees to indemnify, defend and save Landlord harmless, and Landlord
agrees to indemnify, defend and save Tenant harmless, from and against any
claims for fees or commissions from anyone other than Broker with whom Landlord
or Tenant, as the case may be, has dealt in connection with the demised
premises or this Lease. Landlord agrees to pay Broker the fee or brokerage
commission with respect to this Lease pursuant to a separate agreement.

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ARTICLE 40

INVALIDITY OF ANY PROVISION

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

40.2.                 If
any term, covenant, condition or provision of this Lease is found invalid or
unenforceable to any extent, by a final judgment or award which shall not be
subject to change by any appeal, then either party to this Lease may initiate
an arbitration in accordance with the provisions of Article 33 hereof, which
arbitration shall be by three (3) arbitrators each of whom shall have at least
ten (10) years’ experience in the subject matter in dispute. Said arbitrators
shall devise a valid and enforceable substitute term, covenant, condition or
provision for this Lease which shall as nearly as possible carry out the
intention of the parties with respect to the term, covenant, condition or
provisions theretofore found invalid or unenforceable. Such substitute term,
covenant, condition or provision, as determined by the arbitrators, shall thereupon
be deemed a part of this Lease.

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ARTICLE 41

MISCELLANEOUS

41.1.                 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.

41.2.                 It
is understood and agreed that this Lease is submitted to Tenant on the
understanding that it shall not be considered an offer and shall not bind
Landlord in any way whatsoever until (i) Tenant has duly executed and delivered
duplicate originals to Landlord, and (ii) Landlord has executed and delivered
one of said fully executed originals to Tenant.

41.3.                 Except
as otherwise specifically set forth herein, if the demised premises shall not
be available and ready for occupancy by Tenant on the specific date hereinabove
designated for the commencement of the term of this Lease for any reason
whatsoever, then this Lease shall not be affected thereby but, in such case,
said specific date shall be deemed to be postponed until the date when the
demised premises shall be available for occupancy by Tenant, and Tenant shall
not be entitled to possession of the demised premises until the same are
available and ready for occupancy by Tenant, provided, however, that Tenant
shall have no claim against Landlord, and Landlord shall have no liability to
Tenant by reason of any such postponement of said specific date, and the
parties hereto further agree that any failure to have the demised premises
available and ready for occupancy by Tenant on said specific date or on the
Commencement Date shall in no wise affect the obligations of Tenant hereunder
nor shall the same be construed in any wise to extend the term of this Lease
and, furthermore, this Section 41.3 shall be deemed to be an express provision
to the contrary of Section 223-a of the Real Property Law of the State of New
York and any other law of like import now or hereafter in force.

41.4.                 As
long as Landlord (or an affiliate of Landlord) operates the garage in the
building, Landlord shall make arrangements with the operator of the garage in
the Building to make available to Tenant, at such garage operator’s regular
posted rate, and pursuant to its standard terms, parking for three (3)
automobiles by Tenant and Tenant’s employees. Tenant may, prior to each anniversary
of the date hereof, notify Landlord in writing of Tenant’s desire to reduce the
number of parking spaces set forth herein, in which case the number of parking
spaces and the total parking charges (but not the per parking space charge)
shall be appropriately reduced, and in the event Tenant thereafter again
requires up to the three (3) parking spaces set forth herein. Tenant shall have
the right to

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additional parking spaces, up to three
(3) parking spaces, on an “as available” basis. Tenant and the persons using
such parking spaces shall comply with all the rules and regulations, including
days and hours of operation, speed limits, parking allocations and any other
reasonable rules and regulations which are or may hereafter be promulgated by
Landlord or its garage concessionaire with respect to parking of motor vehicles
in said garage, provided Landlord and its garage concessionaire agree not to
enforce any such rules and regulations against Tenant in a discriminatory
manner.

41.5.                 Landlord
and Tenant agree that the prevailing party in any action or proceeding (as
opposed to an arbitration, for which the provisions of this Section 41.5 will
not apply) arising under this Lease, shall be entitled to reimbursement from
the other party for reasonable legal fees incurred in connection with such
action or proceeding.

41.6.                 Landlord
hereby agrees that it shall not remove the existing window blinds located in
the demised premises.

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ARTICLE 42

RESTRICTIONS UPON USE

42.1.                 It
is expressly understood that no portion of the demised premises shall be used
as, by or for (i) a bank, trust company, savings bank, industrial bank, savings
and loan association or personal loan bank (or any branch office or public
accommodation office of any of the foregoing), unless for general and executive
office use and not for retail off the street business, or (ii) a public
stenographer or typist, barber shop, beauty shop, beauty parlor or shop,
telephone or telegraph agency, telephone or secretarial service, messenger
service, travel or tourist agency, employment agency (other than an executive
search company of the quality of Russell Reynolds or Spencer Stuart), public
restaurant or bar, commercial document reproduction or offset printing service,
public vending machines, retail, wholesale or discount shop for sale of
merchandise, retail service shop, labor union, school or classroom,
governmental or quasi-governmental bureau, department or agency, including an
autonomous governmental corporation, an advertising agency, a firm whose principal
business is real estate brokerage, or a company engaged in the business of
renting office or desk space.

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ARTICLE 43

SUCCESSORS AND ASSIGNS

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

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ARTICLE 44

EXTENSION
TERM

44.1.                 Tenant
shall have the right to extend the term of this Lease for an additional term of
five (5) years commencing on the date immediately following the Expiration Date
of the initial term of this Lease (hereinafter referred to as the “CommencementDate of the Extension Term”) and ending
on the date immediately preceding the fifth (5th) anniversary of the
Commencement Date of the Extension Term (such additional term is hereinafter
called the “Extension Term”)
provided that:

(i)          Tenant shall give
Landlord notice (hereinafter called the “Extension
Notice”) of its election to extend the term of the Lease at
least fifteen (15) months prior to the Expiration Date (of the initial term of
this Lease);

(ii)         Tenant is not in
default (after the expiration of applicable grace periods, if any) under the
Lease as of the time of the giving of the Extension Notice;

(b)        The
fixed annual rent payable by Tenant to Landlord during the Extension Term shall
be equal to the higher of

(i)          ninety-five (95%)
percent of the fair market rent for the demised premises as of the date
occurring six (6) months prior to the Commencement Date of the Extension Term
(such date is hereinafter called the “Determination
Date”) and which determination shall be made by Landlord and
shall be set forth in a notice given by Landlord to Tenant on or shortly after
the Determination Date, subject, however, to the provisions of Section 44.2 and
Article 45 hereof; or

(ii)         the fixed annual
rent payable by Tenant hereunder as of the Expiration Date of the initial term
hereof, assuming the same base year factors are maintained under Articles 4 and
5 of this Lease.

In determining the fair market rent under clause (i) of this
subsection 44.1(b), due consideration shall be given to all relevant factors,
whether favorable to Landlord or to Tenant, including, but not limited to, the
fact that the base years for real estate tax and operating expense escalations
shall remain as set forth in Articles 4 and 5 of this Lease.

44.2.                 (a)  In
the event Tenant gives the First Extension Notice in accordance with the
provisions of Section 44.1 hereof and the parties are unable to agree as to the
fair market rent within thirty (30) days after the Determination

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Date, then
Landlord or Tenant may initiate the appraisal process provided for in Article
45 of this Lease and the fair market rent shall be determined in accordance
with the provisions of Article 45 hereof.

(b)    If Landlord notifies Tenant that the fixed
annual rent shall be equal to the amount set forth in subsection 44.1(b)(ii)
hereof, then the provisions of this Section 44.2 shall be inapplicable and have
no force or effect.

(c)    In the event Landlord or Tenant initiates
the appraisal process pursuant to this Section 44.2 hereof and as of the
commencement of the Extension Term the amount of the fair market rent has not
been determined, Tenant shall pay the amount of the fixed annual rent payable
by Tenant hereunder as of the Expiration Date of the initial term hereof and
when such determination has been made, it shall be retroactive as of the
commencement of the Extension Term and any deficiency shall be paid by Tenant
to Landlord or overpayment repaid by Landlord to Tenant within thirty (30) days
after the date of such determination with interest thereon at the Prime Rate.

44.3.                 Except as provided in Section
44.1 hereof, Tenant’s occupancy of the demised premises during the Extension
Term shall be on the same terms and conditions as are in effect immediately
prior to the expiration of the initial term of this Lease, provided, however,
Tenant shall have no further right to extend the term of this Lease pursuant to
this Article 44.

44.4.                 If Tenant does not send the
Extension Notice pursuant to provisions of Section 44.1 hereof, this Article 44
and Article 45 shall have no force or effect and shall be deemed deleted from
this Lease.

44.5.                 If this Lease is renewed for
the Extension Term, then Landlord or Tenant can request the other party hereto
to execute an instrument in form for recording setting forth the exercise of
Tenant’s right to extend the term of this Lease and the last day of the Extension
Term.

44.6.                 If Tenant exercises its right
to extend the term of this Lease for the Extension Term pursuant to this
Article 44, the phrases “the term of this
Lease” or “the term hereof”
as used in this Lease, shall be construed to include, when practicable, the
Extension Term.

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ARTICLE 45

FAIR
MARKET RENT DETERMINATION

45.1.                 In
the event that within sixty (60) days after notice from Landlord to Tenant of
Landlord’s determination of fair market rent and the fixed annual rent payable
as a result of such determination pursuant to Article 44, Tenant shall by
notice to Landlord reject Landlord’s determination (time being of the essence
with respect to such Tenant’s rejection notice), then either party (herein
called the “Initiating Party”)
may within fifteen (15) days of the giving by Tenant of Tenant’s notice, give
the other party (herein called the “Responding
Party”) a notice designating the name and address of the
arbitrator designated by the Initiating Party to act on its behalf in the
arbitration process hereinafter described (such notice is hereinafter called a “Review Notice” or a “Rent Review Notice”).

45.2.                 (a)
If the Initiating Party gives a Review Notice, then within twenty (20) days
after the giving of such Review Notice, the Responding Party shall give notice
to the Initiating Party specifying in such notice the name and address of the
arbitrator designated by the Responding Party to act on its behalf. In the
event the Responding Party shall fail to give such notice within such twenty
(20) day period, then the appointment of such arbitrator shall be made in the
same manner as hereinafter provided for the appointment of a third arbitrator
in a case where the two arbitrators are appointed hereunder and the parties are
unable to agree upon such appointment. The two arbitrators so chosen shall meet
within thirty (30) days after the second arbitrator is appointed and shall
exchange sealed envelopes each containing such arbitrator’s written
determination of the fair market rent of the space in question based on the
criteria set forth in subsection 45.2(c) hereof. The fair market rent specified
by Landlord’s arbitrator shall herein be called “Landlord’s Submitted Value” and the fair market rent
specified by Tenant’s arbitrator shall herein be called “Tenant’s Submitted Value”. Copies of
such written determinations shall promptly be sent to both Landlord and Tenant.
Any failure of either such arbitrator to meet and exchange such determinations
shall be acceptance of the other party’s arbitrator’s determination as to fair
market rent, if, and only if, such failure persists for five (5) days after
notice to the party for whom such arbitrator is acting, and, provided that such
five (5) day period shall be extended by reason of any applicable condition of
force majeure. If the higher determination of fair market rent for the space in
question is not more than one hundred five (105%) percent of the lower
determination of the fair market rent, then the fair market rent for such space
shall be deemed to be the average of the two determinations. If, however, the
higher determination is more than one hundred five (105%) percent of the lower
determination, then within ten (10) days of the date the arbitrators submitted

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their
respective fair market rent determinations, the two arbitrators shall appoint a
third arbitrator, which arbitrator shall be impartial and shall have at least
ten (10) years experience in the matter at hand. In the event of their being
unable to agree upon such appointment within ten (10) days after the exchange
of sealed envelopes, the third arbitrator shall be selected by the parties
themselves if they can agree thereon within a further period of ten (10) days.
If the parties do not so agree, then either party, on behalf of both and on
notice to the other, may request such an appointment by the American
Arbitration Association (or any successor organization) in accordance with its
rules then prevailing or if the American Arbitration Association (or such
successor organization) shall fail to appoint said third arbitrator within
fifteen (15) days after such request is made, then either party may apply for
such appointment, on notice to the other, to the President of the Bar
Association of the City of New York (who may consult with the Chairman of the
Real Property Law Committee of the Bar Association of the City of New York).
Within ten (10) days after the appointment of such third arbitrator, the
Landlord’s arbitrator shall submit Landlord’s Submitted Value to such third
arbitrator and the Tenant’s arbitrator shall submit Tenant’s Submitted Value to
such third arbitrator as described in this Section 45.2(a). Such third
arbitrator shall, within thirty (30) days after the end of such fifteen (15)
day period, make his own determination of the fair market rent of the space in
question based on the criteria set forth in Section 45.2(c) hereof, and send
copies of his determination promptly to both Landlord and Tenant specifying
whether Landlord’s Submitted Value or Tenant’s Submitted Value was closer to
the determination by such third arbitrator of the fair market rent of the space
in question. Whichever of Landlord’s Submitted Value or Tenant’s Submitted
Value shall be closer to the determination by such third arbitrator shall
conclusively be deemed to be the fair market rent for the space in question.

(b)    Each party shall pay the fees and expenses
of the one of the two original arbitrators appointed by or for such party, as
well as the attorneys’ fees, witness fees and similar expenses incurred by such
party, and the fees and expenses of the third arbitrator and all other expenses
of the arbitration shall be borne by the parties equally.

(c)    The arbitrators shall determine the annual
fair market rent with respect to the demised premises based on the rental
market as of the applicable Determination Date in accordance with the
provisions of this subsection 45.2(c). The annual fair market rent to be
determined by the arbitrators with respect to the demised premises, shall be
the fair market rent for the demised premises determined as of the applicable
Determination Date but with due consideration to all relevant factors, whether
favorable to Landlord or to Tenant. In

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rendering
such decision and award, the arbitrators shall not add to or subtract from or
otherwise modify the provisions of this Article 45 or this Lease. The decision
and award of the arbitrators (or of the third arbitrator alone, as the case may
be) shall be in writing and be final and conclusive on the parties and
counterpart copies thereof shall be delivered to each of the parties. Judgment
may be had on the decision and award of the arbitrators (or of the third
arbitrator alone, as the case may be) so rendered, in any court of competent
jurisdiction.

(d)    Intentionally Deleted.

(e)    Prior to the determination of the
arbitrators, Tenant shall pay fixed annual rent with respect to any additional
space to be included in the demised premises at the rate that was payable by
Tenant hereunder as of the expiration of the prior term (the initial term),
then in the event of an overpayment or underpayment of fixed annual rent by
Tenant, Landlord shall permit Tenant to credit against the next installment (or
installments, if the credit exceeds the amount of the next installment) of
fixed annual rent due under this Lease, the amount of Tenant’s overpayment
(together with interest thereon at the Prime Rate calculated from the date of
the overpayment to the date such overpayment is credited to Tenant) or Tenant
shall promptly pay to Landlord the deficiency together with interest thereon at
the Prime Rate from the date payment was due.

(f)     Nothing contained in this Article 45 shall
be deemed in any way to alter, modify or affect the provisions of Article 4 or
5 hereof.

45.3.                 Landlord and Tenant expressly
agree that the provisions of this Article 45 shall apply with respect to any
dispute regarding the determination of the fixed annual rent pursuant to the
provisions of this Lease and that the provisions of Article 33 shall have no
application with respect to such determination.

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ARTICLE 46

SECURITY

46.1.                 As of the date hereof, Tenant
has caused AECOM TECHNOLOGY CORPORATION (“Guarantor”)
to deliver the guaranty (the “Guaranty”) annexed hereto as Exhibit K to Landlord to secure the
full and faithful performance and observance by Tenant of the terms and
conditions of this Lease. If Guarantor has a credit rating, then within thirty
(30) days of the end of each calendar quarter, Tenant shall furnish to
Landlord, or cause Guarantor to furnish to Landlord, a statement certified by an
officer of Guarantor setting forth the credit rating of Guarantor. If Guarantor
has a credit rating, then within ten (10) days of a change in Guarantor’s
credit rating or Guarantor being put on “credit watch”, Tenant shall furnish to
Landlord, or cause Guarantor to furnish to Landlord, a copy of the credit
report setting forth such information. Throughout the term, Tenant shall cause
Guarantor to deliver audited financial statements prepared in accordance with
generally accepted accounting principles(“GAAP”) to
Landlord by January 31 of each year or within 120 days of the end of Tenant’s
fiscal year if the fiscal year of Tenant changes.

46.2.                 If at any time during the term
of this Lease, (a)(i) Guarantor has a credit rating and its credit rating fallsbelow its current rating of BBB- (the “Threshold Rating”), or(ii) Guarantor is put on “credit watch”,
then Tenant shall immediately and without the need for demand by Landlord,
deposit with Landlord a clean, unconditional and irrevocable letter of credit
in the amount of one (1) year’s fixed annual rent and one(1) year’s additional rent (in the
amount of the additional rent Tenant is then paying in accordance with Articles
4 and 5 of this Lease) due from Tenant to Landlord, in the form annexed hereto
as Exhibit L or (b) if
there is no credit rating published for Guarantor, and Guarantor’s shareholder
equity (as determined in accordance with GAAP) falls below Seventy Million and
00/100($70,000,000)
Dollars (the “Equity Threshold”)but is greater than Sixty-Five Million and
00/100 ($65,000,000) (the “Second Equity
Threshold”), then Tenant shall immediately and without the need
for demand by Landlord, deposit with Landlord a clean, unconditional and
irrevocable letter of credit in the amount of six (6) months’ fixed annual rent
and six (6) months’ additional rent (in the amount of the additional rent
Tenant is then paying in accordance with Articles 4 and 5 of this Lease) due
from Tenant to Landlord, in the form annexed hereto as Exhibit L,provided,
should Guarantor’s shareholder equity (as determined in accordance with GAAP)
fall below the Second Equity Threshold then Tenant shall be required to deliver
to Landlord a letter of credit in the amount of one (l) year’s fixed annual
rent and one(1) year’s
additional rent (in the amount of the additional rent

 110
 

that Tenant is paying in accordance
with Articles 4 and 5 of the Lease) and Landlord shall upon receipt of such
letter of credit return any previously delivered letter of credit to Tenant.
The delivery of any letter of credit shall be as security for the faithful
performance and observance by Tenant of the terms, provisions, covenants and
conditions of this Lease. Tenant shall maintain in effect at all times during
the term of this Lease (and through the period which is thirty (30) days
following the Expiration Date) following delivery thereof the letter of credit
and such letter of credit shall be issued by a banking corporation (“Bank”) reasonably satisfactory to
Landlord (Landlord hereby agreeing that, for the purposes hereof, any Bank with
assets of at least Five Hundred Million and 00/100 ($500,000,000) Dollars shall
be deemed reasonably satisfactory to Landlord) and which is a member of the New
York Clearing House Association or successor thereto. Such letter of credit
shall have an expiration date no earlier than the first anniversary of the date
of issuance thereof. Without further act or instrument required by Landlord,
the letter of credit shall be renewed by Tenant not less than thirty (30) days
prior to the then current expiration date of the letter of credit for
successive additional terms of at least one (1) years until the Expiration
Date. It is agreed that in the event Tenant defaults in respect of any of the
terms, covenants or provisions of this Lease, including, without limitation,
the payment of any fixed annual rent and additional rent, and such default
continues beyond the applicable grace or cure period, if any, or if any letter
of credit is not replaced or renewed on or before the thirtieth (30th) day
prior to its expiration that Landlord shall have the right to require the Bank
to make payment to Landlord of so much of the entire proceeds of the letter of
credit as shall be reasonably necessary to cure the default (or the entire
proceeds if the letter of credit is not replaced or renewed as aforesaid), and
Landlord may apply said sum so paid to it by the Bank to the extent required
for the payment of any fixed annual rent and additional rent or any other sum
as to which Tenant is in default beyond applicable grace and cure periods or
for any sum which Landlord may expend or may be required to expend by reason of
Tenant’s default beyond applicable grace including, without limitation, any
damages or deficiency in the reletting of the demised premises, whether such
damages or deficiency accrues before or after summary proceedings or other
re-entry by Landlord, without thereby waiving any other rights or remedies of
Landlord with respect to such default. If Landlord applies any part of the
proceeds of a letter of credit, Tenant, upon demand, shall deposit with
Landlord promptly the amount so applied or retained (or increase the amount of
the letter of credit) so that the Landlord shall have the full deposit on hand
at all times during the term of this Lease. Tenant shall be required to
promptly increase the amount of the letter of credit each time fixed annual
rent or additional rent under Articles 4 and 5 of this Lease is increased in
accordance

 111
 

with the terms of this Lease. If,
subsequent to a letter of credit being drawn upon, a new letter of credit
meeting all the requirements set forth in this Section 46.2 is delivered to
Landlord, any remaining proceeds of the former letter of credit then held by
Landlord shall be promptly returned to Tenant. If Tenant shall fully and
faithfully comply with all of the terms, covenants and provisions of this
Lease, any letter of credit, or any remaining portion of any sum collected by
Landlord hereunder from the Bank, together with any other portion or sum held
by Landlord as security shall be returned to Tenant after the Expiration Date
and not later than forty-five (45) days after delivery of the entire possession
of the demised premises to Landlord as provided hereunder. In the event of an
assignment by Landlord of its interest under this Lease, Landlord shall have
the right to transfer the security to the assignee, and, if Landlord assigns
the security to the assignee, then Tenant agrees to look to the new Landlord
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 Landlord. Tenant shall have the right to substitute one letter of credit
for another provided that at all times the letter of credit shall meet the requirements
of this Section 46.2. After Tenant has deposited a letter of credit with
Landlord, (w) if the credit rating of Guarantor shall again, or if a new credit
rating is given Guarantor which does, equal or exceed the Threshold Rating, and
(x) if Guarantor shall be removed from “credit watch” (as verified to Landlord
by means of a statement to such effect certified by an officer of Guarantor
along with a copy of the credit report reflecting such change in status), or
(y) if there is no rating published for Guarantor but Guarantor’s shareholder
equity again equals or exceeds the Equity Threshold (whichever was the reason
for Tenant being required to deposit the letter of credit with Landlord),
Landlord shall promptly return the letter of credit to Tenant, or if there is
no rating published for Guarantor but Guarantor’s shareholder equity again
equals or exceeds the Second Equity Threshold (but remains below the Equity
Threshold) then Tenant may replace the letter of credit previously delivered to
Landlord with a letter of credit in the form and amount Tenant is required to
deliver when there is no credit rating for Guarantor and its shareholder equity
has fallen below the Equity Threshold but is above the Second Equity Threshold,
provided, the provisions of this Section 46.2 shall again apply if at any time
any of the criteria set forth in clauses (a) or (b) of this Section 46.2 shall
occur.

 112
 

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

	
  

  	
   

  	
  605 THIRD AVENUE
  LLC, Lessor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  FB 605 Corp. its member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Richard L. Fisher

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Richard L. Fisher

  
	
   

  	
   

  	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Hawaiian 605 Special Corp., its member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ DAVID L. FEY

  
	
   

  	
   

  	
   

  	
   

  	
  Name: DAVID L. FEY

  
	
   

  	
   

  	
   

  	
   

  	
  Title: PRESIDENT

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FREDERIC R. HARRIS, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ FREDERICK WERNER

  
	
   

  	
   

  	
   

  	
  Name: FREDERICK WERNER

  
	
   

  	
   

  	
   

  	
  Title: EXECUTIVE VICE PRESIDENT

  

Tenant’ s Federal Identification Number is as follows: 13-5511947

 113
 

 

	
  STATE OF NEW YORK

  	
   

  	
  )

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
   

  	
  )

  

On this 1st day of April, 1999, personally came Richard L. FISHER, known
to me to be the person who executed the foregoing instrument and who, being
duly sworn by me, did depose and say he is the President of FB 605 CORP., a New
York corporation, a member of 605 THIRD AVENUE LLC, a New York limited
liability company, the Landlord described in, and which executed the foregoing
instrument; and that he signed his name thereto by order of the board of
directors of said corporation as a member of the aforesaid limited liability
company.

	
  

  	
   

  	
   

  	
   

  	
  /s/ Nancy J. deBrito

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NANCY J. DEBRITO

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public, State of New York

  
	
   

  	
   

  	
   

  	
   

  	
  No. 01DE5056317

  
	
   

  	
   

  	
   

  	
   

  	
  Qualified in New York County

  
	
   

  	
   

  	
   

  	
   

  	
  Commission Expires Mar. 4, 2000

  

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

On this 6th day of APRIL, 1999, before mepersonally came DAVID L. FEY, to me
known, who, being duly sworn by me, did depose and say that he resides at 1
HITCHCOCK RD, CT,that he is
the PRESIDENT of HAWAIIAN 605 SPECIAL CORP., a New York corporation, a member
of 605 THIRD AVENUE LLC, a New York limited liability company, the Landlord
described in, and which executed the foregoing instrument; and that he signed
his name thereto by order of the board of directors of said corporation as a
general partner of the aforesaid limited liability company.

	
  

  	
   

  	
   

  	
   

  	
  /s/ Jack Linder

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  JACK LINDER

  
	
   

  	
   

  	
   

  	
   

  	
  NOTARY PUBLIC, State of New York

  
	
   

  	
   

  	
   

  	
   

  	
  No. 01LI5085353

  
	
   

  	
   

  	
   

  	
   

  	
  Qualified in New York County

  
	
   

  	
   

  	
   

  	
   

  	
  Commission Expires Sept. 22,1999

  

 

 114

 

	
  STATE OF NEW YORK

  	
   

  	
  )

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
   

  	
  )

  

On this 7th day of MARCH, 1999, before me personally came
FREDERICK WERNER, to me known, who, being duly sworn by me, did depose and say
that he resides at MENDHAM, NJ; that he is the EXECUTIVE VICE PRESIDENT of
FREDERIC R. HARRIS, INC., a New York corporation, the corporation mentioned in,
and which executed the foregoing instrument; 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.

	
  

  	
   

  	
   

  	
   

  	
  /s/ Robert K. Orlin

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Robert K. Orlin

  
	
   

  	
   

  	
   

  	
   

  	
  Notary Public, State of New York

  
	
   

  	
   

  	
   

  	
   

  	
  No. 02OR5087994

  
	
   

  	
   

  	
   

  	
   

  	
  Qualified in Nassau County

  
	
   

  	
   

  	
   

  	
   

  	
  Commission Expires November 10, 1999

  

 

EXHIBIT A

Floor Plan

 A-1

THIRD AVENUE

[GRAPHIC]

THIRD AVENUE

[GRAPHIC]

EXHIBIT
B

Approved
List

 B-1

	
  APPROVED BUILDING CONTRACTORS

  	
   

  	
  Revised

  
	
  FOR THE USE OF FISHER BROTHERS’
  TENANTS

  	
   

  	
  4/23/98

  

 

	
  GENERAL CONTRACTORS

  	
   

  	
  CONTACT

  	
   

  	
  TELEPHONE NO.

  
	
  Americon Construction, Inc.

  	
   

  	
  Richard Cucci / Thomas Prince

  	
   

  	
  (212) 274-0190

  
	
  E. S. McCann

  	
   

  	
  Dominick LiCausi

  	
   

  	
  (212) 586-8000

  
	
  Plaza Construction Corporation

  	
   

  	
  Richard Wood

  	
   

  	
  (212) 849-4800

  
	
  Quadrant Construction

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HVAC

  	
   

  	
   

  	
   

  	
   

  
	
  B. P. Air Conditioning

  	
   

  	
  Robert Barbera

  	
   

  	
  (718) 383-2100

  
	
  [ILLEGIBLE] Air Conditioning Corp.

  	
   

  	
  Kenneth N. Mayo

  	
   

  	
  (718) 729-7111

  
	
  Delphi Mechanical, Inc.

  	
   

  	
  Peter Manos

  	
   

  	
  (718) 204-5500

  
	
  P. J. Mechanical

  	
   

  	
  Peter or Chris Pappas

  	
   

  	
  (212) 243-2555

  
	
  Penguin Air Conditioning

  	
   

  	
  Dan Dubin

  	
   

  	
  (718) 706-6500

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  AIR & WATER BALANCING

  	
   

  	
   

  	
   

  	
   

  
	
  Merendino Associates Inc.

  	
   

  	
  Michael Merendino

  	
   

  	
  (718) 599-1300

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL “A”

  	
   

  	
   

  	
   

  	
   

  
	
  (All Base Building Switches & Risers)

  	
   

  	
   

  	
   

  	
   

  
	
  ADCO - Electric

  	
   

  	
  Edward Welsh

  	
   

  	
  (718) 494-4400

  
	
  Arc Electrical Const. Corp.

  	
   

  	
  Caesar [ILLEGIBLE]

  	
   

  	
  (212) 573-9600

  
	
  Forest Electric Corp.

  	
   

  	
  Phil Altheim / Bob Henry

  	
   

  	
  (212) 318-1500

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ELECTRICAL “B”

  	
   

  	
   

  	
   

  	
   

  
	
  (Tenant Work)

  	
   

  	
   

  	
   

  	
   

  
	
  ADCO - Electric

  	
   

  	
  Edward Welsh

  	
   

  	
  (718) 494-4400

  
	
  Arc Electrical Const. Corp.

  	
   

  	
  Caesar [ILLEGIBLE]

  	
   

  	
  (212) 573-9600

  
	
  Campbell & Dawes Ltd.

  	
   

  	
  Gary [ILLEGIBLE]

  	
   

  	
  (718) 651-4433

  
	
  Forest Electric Corp.

  	
   

  	
  Phil Altheim / Bob Henry

  	
   

  	
  (212) 318-1500

  
	
  Italco Electric Co.

  	
   

  	
  Sam DeLuca

  	
   

  	
  (212) 888-6789

  
	
  Kleinknecht

  	
   

  	
  Tom Camey

  	
   

  	
  (212) 989-4500

  
	
  Petrocelli Electric Co.

  	
   

  	
  Santo Petrocelli, Jr.

  	
   

  	
  (718) 937-1200

  
	
  Phoenix

  	
   

  	
  Eugene Orlowski/William McSpedon

  	
   

  	
  (718) 361-2877

  
	
  Zwicker Electric

  	
   

  	
  Alan Norden

  	
   

  	
  (212) 477-8400

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PAINTING

  	
   

  	
   

  	
   

  	
   

  
	
  Hudson Shatz Painting Co.

  	
   

  	
  [ILLEGIBLE] Testori / Alan Henshaw

  	
   

  	
  (212) 757-6363

  
	
  Murray Hill Painting

  	
   

  	
  David Barton / George Story

  	
   

  	
  (718) 482-7575

  
	
  Prestige Painting

  	
   

  	
  [ILLEGIBLE]

  	
   

  	
  (212) 943-6777

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PLUMBING

  	
   

  	
   

  	
   

  	
   

  
	
  Ashland

  	
   

  	
  Les Korbl / John Ross

  	
   

  	
  (212) 989-1320

  
	
  George Breslaw & Sons

  	
   

  	
  Milton Breslaw

  	
   

  	
  (212) 265-4023

  
	
  Kalisch-Jarcho

  	
   

  	
  Mike Sarvas

  	
   

  	
  (718) 507-6600

  
	
  NCZ Plumbing & Heating Ltd.

  	
   

  	
  Drake Zamin

  	
   

  	
  (212) 987-4321

  
	
  Pace Plumbing

  	
   

  	
  Harold Block

  	
   

  	
  (718) 389-6100

  
	
  Par Plumbing

  	
   

  	
  Marty Levine / Larry Levine

  	
   

  	
  (516) 887-4000

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SECURITY INSTALLATIONS

  	
   

  	
   

  	
   

  	
   

  
	
  Citilights Electrical Contractors Ltd.

  	
   

  	
  Mike Martin

  	
   

  	
  (718) 492-9000

  

 

 1
 

 

	
  APPROVED CONTRACTORS

  	
   

  	
  CONTACT

  	
   

  	
  TELEPHONE NO.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SPRINKLER

  	
   

  	
   

  	
   

  	
   

  
	
  Abco - Peerless

  	
   

  	
  Jim Stanton

  	
   

  	
  (516) 294-6850

  
	
  Active Fire Sprinkler Corp.

  	
   

  	
  Morty Hirsch / Joe Hirsch

  	
   

  	
  (718) 834-8300

  
	
  Belrose Fire Suppression

  	
   

  	
  Mike Hartigan

  	
   

  	
  (516) 378-9590

  
	
  Rael Automatic Sprinkler Co.

  	
   

  	
  David Israel / Norman Israel

  	
   

  	
  (516) 593-2000

  
	
  Sirina Fire Protection Corporation

  	
   

  	
  Rocco Abbate

  	
   

  	
  (516) 942-0400

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  STRUCTURAL STEEL & MISC.
  IRON

  	
   

  	
   

  	
   

  	
   

  
	
  Atlantic Detail & Erection Corporation

  	
   

  	
  John Riggs

  	
   

  	
  (718) 945-4952

  
	
  Burgess Steel

  	
   

  	
  Matthew Guerin

  	
   

  	
  (212) 563-6000

  
	
  Hallen Steel

  	
   

  	
  Stephen DeGregory

  	
   

  	
  (718) 784-1730

  
	
  Northeastern Iron Works

  	
   

  	
  Anthony DiDonato

  	
   

  	
  (718) 542-0450

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HARDWARE

  	
   

  	
   

  	
   

  	
   

  
	
  AAA Hardware

  	
   

  	
  William Brown

  	
   

  	
  (212) 840-3939

  
	
  Atlantic Hardware & Supply

  	
   

  	
  Paul Seldon

  	
   

  	
  (212) 924-0700

  
	
  Weinstein & Holtzman

  	
   

  	
  Ira Hymowitz

  	
   

  	
  (212) 233-4651

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  DEMOLITION

  	
   

  	
   

  	
   

  	
   

  
	
  Casalino Interior Demolition

  	
   

  	
  Carlo Casalino

  	
   

  	
  (718) 478-2292

  
	
  Fortune Demolition

  	
   

  	
  William Palmadessa

  	
   

  	
  [ILLEGIBLE]

  
	
  Liberty Contracting Corp.

  	
   

  	
  Frank Cali

  	
   

  	
  (201) 488-9300

  
	
  Patriot Contracting Corp.

  	
   

  	
  Charles Becker

  	
   

  	
  (201) 413-9800

  
	
  Riteway Interior Demolition

  	
   

  	
  Nick Trimarchi

  	
   

  	
  (718) 458-8900

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INDUSTRIAL HYGIENETICS

  	
   

  	
   

  	
   

  	
   

  
	
  Ambient Labs, Inc.

  	
   

  	
  John Laitner

  	
   

  	
  (212) 463-7812

  
	
  G.C.I. Environmental

  	
   

  	
  James Grond

  	
   

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ABATEMENT CONTRACTORS

  	
   

  	
   

  	
   

  	
   

  
	
  UNESCO INC.

  	
   

  	
  Bob Katz / Frank Weidner

  	
   

  	
  (201) 939-4000

  
	
  Safeway Environmental Corp.

  	
   

  	
  Donald Adler

  	
   

  	
  (718) 746-4300

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RECOMMENDED CONSULTING
  ENGINEERS

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Electrical/Mechanical

  	
   

  	
   

  	
   

  	
   

  
	
  Cosentini Associates

  	
   

  	
  Mechanical: Robert Amato

  	
   

  	
  (212) 615-3600

  
	
   

  	
   

  	
  Electrical: Charles Buscarlno

  	
   

  	
  (212) 615-3600

  
	
  Structural

  	
   

  	
   

  	
   

  	
   

  
	
  Office of James Ruderman

  	
   

  	
  Howard Zweig

  	
   

  	
  (212) 643-1414

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Fireproofing & Concrete
  Inspections

  	
   

  	
   

  	
   

  	
   

  
	
  Testwell Craig Berger Inc.(Labs.)

  	
   

  	
  Kandy Devitto

  	
   

  	
  (914) 762-9000

  
	
  John H. Brooks & Assoc.

  	
   

  	
  John H. Brooks, Jr.

  	
   

  	
  (908) 495-3142

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Welding Inspection - Engineer

  	
   

  	
   

  	
   

  	
   

  
	
  John H. Brooks & Assoc.

  	
   

  	
  John H. Brooks, Jr.

  	
   

  	
  (908) 495-3142

  

 

 2

	
  FISHER BROTHERS

  	
   

  	
  MEMO

  

 

Date: 4/28/98

To:      All Building Managers

From:
Frank DeNicola

Re:                 Approved Building
Contractors 

Fisher Brothers’ Tenants

Attached please find
the updated list of
approved building contractors for the Fisher Brothers’ New York tenants. Listed
below are the latest additions and / or changes.

·                             X AIR - removed from the HVAC listing.

·                             Petrocelli Electric
Co. - deleted from
the “A” list of contractors.

·                             High Tech - removed from the electrical “B” list.

·                             Prestige Painting - added to painting contractors.

·                             NCZ Plumbing &
Heating Ltd. - added
under plumbing contractors.

·                             Sirina Fire
Protection Corporation - added
to sprinkler list.

·                             Patriot Contracting
Corporation - added
to the demolition contractors.

·                             Safeway
Environmental Corporation -
added under the abatement contractors.

Attachment

	
  cc:

  	
   

  	
  Steven Fisher

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Sam Kleiner

  Eric Klemperer

  Mike McNamara

  John J. Whalen

  Richard Wood (please distribute to appropriate personnel)

  

 

EXHIBIT C

Intentionally
Deleted

 C-1

EXHIBIT D

Operating
Expense Escalation Statement

 D-1

605 THIRD AVENUE

EXPENSE ESCALATION

MAY 1, 1997-APRIL 30, 1998

	
  Wages

  	
   

  	
  $

  	
  996,286

  	
   

  
	
  Payroll Taxes & Nonunion Employee Benefits

  	
   

  	
  137,230

  	
   

  
	
  Union Pension & Welfare

  	
   

  	
  185,002

  	
   

  
	
  Steam

  	
   

  	
  446,366

  	
   

  
	
  Electricity 50%

  	
   

  	
  1,271,604

  	
   

  
	
  Water and Sewer

  	
   

  	
  62,537

  	
   

  
	
  Supplies

  	
   

  	
  121,848

  	
   

  
	
  Repairs and Maintenance

  	
   

  	
  525,049

  	
   

  
	
  Painting

  	
   

  	
  60,502

  	
   

  
	
  Elevator Maintenance

  	
   

  	
  328,366

  	
   

  
	
  Protection

  	
   

  	
  308,263

  	
   

  
	
  Metal Maintenance

  	
   

  	
  164,538

  	
   

  
	
  Rubbish Removal

  	
   

  	
  80,861

  	
   

  
	
  Lobby Decorations

  	
   

  	
  30,055

  	
   

  
	
  Uniform Maintenance

  	
   

  	
  8,628

  	
   

  
	
  Water Treatment

  	
   

  	
  20,869

  	
   

  
	
  Telephone

  	
   

  	
  8,697

  	
   

  
	
  Management Fee

  	
   

  	
  227,542

  	
   

  
	
  Association Dues

  	
   

  	
  2,222

  	
   

  
	
  Professional Fees

  	
   

  	
  104,500

  	
   

  
	
  Superintendent’s Expenses

  	
   

  	
  14,040

  	
   

  
	
  Contract Cleaning

  	
   

  	
  3,894,536

  	
   

  
	
  Insurance

  	
   

  	
  412,243

  	
   

  
	
  Sundry Operating Expense

  	
   

  	
  134,256

  	
   

  
	
  Miscellaneous Expense

  	
   

  	
  11,246

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  9,557,286

  	
   

  

 

EXHIBIT E

Cleaning Cost
Escalation

 E-1

605 THIRD AVENUE

PORTER WAGE ESCALATION

FOR THE YEAR ENDING

DECEMBER 31,1998

	
  WAGES PAID

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BASE PAY

  	
   

  	
  $

  	
  15.4870

  	
   

  	
  X

  	
  2,080.0

  	
   HRS

  	
  $

  	
  32,212.96

  	
   

  	
   

  	
   

  
	
  SICK PAY

  	
   

  	
  $

  	
  15.4870

  	
   

  	
  X

  	
  80.0

  	
   HRS

  	
  $

  	
  1,238.96

  	
   

  	
   

  	
   

  
	
  RELIEF PAY

  	
   

  	
  $

  	
  15.4870

  	
   

  	
  X

  	
  202.5

  	
   HRS

  	
  $

  	
  3,136.12

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL WAGES PAID

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  36,588.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PENSION AND WELFARE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PENSION FUND

  	
   

  	
  $

  	
  29.72

  	
   

  	
  X

  	
  52

  	
   WK

  	
  $

  	
  1,545.44

  	
   

  	
   

  	
   

  
	
  WELFARE & EDUCATION FUND

  	
   

  	
  $

  	
  1,451.41

  	
   

  	
  X

  	
  4

  	
   QTR

  	
  $

  	
  5,805.64

  	
   

  	
   

  	
   

  
	
  ANNUITY FUND

  	
   

  	
  $

  	
  7.00

  	
   

  	
  X

  	
  52

  	
   WK

  	
  $

  	
  364.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL PENSION AND WELFARE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  7,715.08

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FEDERAL AND STATE TAXES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  F.I.C.A.

  	
   

  	
  7.6500

  	
  %

  	
  X

  	
  $

  	
  36,588.04

  	
   

  	
  $

  	
  2,798.99

  	
   

  	
   

  	
   

  
	
  F.U.I.& S.U.I.

  	
   

  	
  4.8000

  	
  %

  	
  X

  	
  $

  	
  7,000.00

  	
   

  	
  $

  	
  336.00

  	
   

  	
   

  	
   

  
	
  WORKMENS COMP. INSURANC

  	
   

  	
  6.2200

  	
  %

  	
  X

  	
  $

  	
  36,588.04

  	
   

  	
  $

  	
  2,275.78

  	
   

  	
   

  	
   

  
	
  N.Y. DISABILITY

  	
   

  	
  0.7700

  	
  %

  	
  X

  	
  $

  	
  17,680.00

  	
   

  	
  $

  	
  136.14

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL FEDERAL & STATE TAXES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  5,546.91

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL COST

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  49,850.03

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  HOURS OF ACTUAL WORK

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WEEKLY HOURS

  	
   

  	
  40

  	
   

  	
  X

  	
  52

  	
   

  	
  2,080.00

  	
   

  	
   

  	
   

  
	
  LESS: VACATION

  	
   

  	
  40

  	
   

  	
  X

  	
  2

  	
   

  	
  (80.00

  	
  )

  	
   

  	
   

  
	
  HOLIDAYS

  	
   

  	
  8

  	
   

  	
  X

  	
  11

  	
   

  	
  (88.00

  	
  )

  	
   

  	
   

  
	
  BIRTHDAY

  	
   

  	
  8

  	
   

  	
  X

  	
  1

  	
   

  	
  (8.00

  	
  )

  	
   

  	
   

  
	
  DISASTER DAY

  	
   

  	
  8

  	
   

  	
  X

  	
  1

  	
   

  	
  (8.00

  	
  )

  	
   

  	
   

  
	
  CLINIC DAY

  	
   

  	
  8

  	
   

  	
  X

  	
  2

  	
   

  	
  (16.00

  	
  )

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1,880.00

  	
   

  	
   

  	
   

  
	
  ADD: SAVINGS ON VACATION HELP

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  32.00

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1912.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COST OF ONE HOUR OF WORK

  	
   

  	
  1998

  49,850.03

  	
   

  	
  /

  	
  1,912

  	
   

  	
   

  	
   

  	
  $

  	
  26.07

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  COST OF ONE HOUR OF WORK

  	
   

  	
  1997

  48,874.89

  	
   

  	
  /

  	
  1,912

  	
   

  	
   

  	
   

  	
  $

  	
  25.56

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PERCENT INCREASE 1998 VS 1987

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  2.00

  	
  %

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1997 CONTRACTUAL AMOUNT BEFORE SALES TAX

  	
   

  	
   

  	
   

  	
   

  	
  3,543,196.16

  	
   

  	
   

  	
   

  
	
  PERCENT INCREASE

  	
   

  	
   

  	
   

  	
   

  	
  2.00

  	
  %

  	
   

  	
   

  	
   

  	
   

  
	
  1998 ANNUAL INCREASE

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  70,863.92

  	
   

  	
   

  	
   

  
	
  1998 CONTRACTUAL AMOUNT BEFORE SALES TAX

  	
   

  	
   

  	
   

  	
   

  	
  3,614,060.03

  	
   

  	
   

  	
   

  
	
  SALES TAX @8.25%

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  298,159.96

  	
   

  	
   

  	
   

  
	
  TOTAL ANNUAL BILLING

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3,912,220.04

  	
   

  	
   

  	
   

  
	
  TOTAL MONTHLY BILLING

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  326,018.34

  	
   

  	
   

  	
   

  

 

EXHIBIT F

Form of Nondisturbance Agreement

SUBORDINATION, NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

This Subordination, Non-Disturbance and
Attornment Agreement (this “Agreement”) is made as of the               
day of                     ,
          , between

                                                                                                                                                                                          

(“Lender”) and 

                                                                                                                                                                                          

(“Tenant”).

RECITALS

A.        Tenant
is the tenant under a certain lease (the “Lease”) dated as of                             ,
        , with                                       
(“Landlord”), of premises described in the Lease (the “Premises”)
at the real property commonly known as 605 Third Avenue, New York, New York
more particularly described in Exhibit A hereto (the “Real Property”).

B.        This
Agreement is being entered into in connection with a certain loan (the “Loan”)
which Lender made to Landlord asof September                   ,
1997, and is secured in part by a mortgage withassignment of rents, security agreement and fixture filing on the
Real Property (the “Mortgage”) dated of even date therewith and an
assignment of leases, rents and security deposits dated of even date therewith
(the “Assignment”; the Mortgage, the Assignment and the other documents
executed and delivered in connection with the Loan are hereinafter collectively
referred to as the “Security Documents”).

AGREEMENT

For mutual consideration, including the
mutual covenants and agreements set forth below, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

1.                          Tenant agrees that the Lease, with all
rights, options, liens and charges created thereby, is and shall be subject and
subordinate in all respects to the Security Documents and to any and all
advances made or to be made thereunder and to all renewals, modifications,
consolidations, replacements and extensions thereof, to the full extent of

 F-1
 

all amounts secured
by the Security Documents from time to time.

2.                          Lender agrees that, if Lender
exercises any of its rights under the Security Documents such that it becomes
the owner of the Real Property, including but not limited to an entry by Lender
pursuant to the Mortgage, a foreclosure of the Mortgage or otherwise, then so
long as Tenant is not in default beyond any applicable grace period of any
term, covenant or condition of the Lease: (a) the Lease shall continue in full
force and effect as a direct lease between Lender and Tenant, and subject to
all the terms, covenants and conditions of the Lease, (b) Lender shall not
disturb Tenant’s right of quiet possession of the Premises during the term of
the Lease, as such term may be extended pursuant to the terms of the Lease, and
(c) Lender, as successor-in- interest to the rights and obligations of Landlord
under the Lease will abide by the provisions of the Lease, notwithstanding any
other provisions of the Security Documents, but subject to the terms of this
Agreement.

3.                          Tenant agrees that, in the event of a
foreclosure of the Mortgage by Lender or the acceptance of a deed in lieu of
foreclosure by Lender or any other succession of Lender to ownership of the
Real Property, subject to Lender’s compliance with the conditions relating to
non-disturbance as set forth in Paragraph 2 above, Tenant will attorn to and
recognize Lender as its landlord under the Lease for the remainder of the term
of the Lease (including all extension periods which have been or are hereafter
exercised) upon the same terms and conditions as are set forth in the Lease,
and Tenant hereby agrees to pay and perform all of the obligations of Tenant
pursuant to the Lease.

4.                          Tenant agrees that, in the event
Lender succeeds to the interest of Landlord under the Lease, Lender shall not
be:

(a)                     liable in any way for any act,
omission, neglect or default of any prior Landlord (including, without
limitation, the then defaulting Landlord); provided, however, that Lender shall
be liable and responsible for the performance of all covenants and obligations
of landlord under the Lease from and after the date that it takes title to the
Real Property (the “Acquisition Date”) with respect to obligations
arising and accruing from and after the Acquisition Date (but subject to the
terms of this Agreement), or

(b)                    subject to any claim, defense,
counterclaim or offsets which Tenant may have against any prior

 F-2
 

Landlord (including, without limitation, the then defaulting
Landlord), other than any offset which Tenant may have with respect to the Work
Credit (as defined in Section 3.2(b) of the Lease), or

(c)                     bound by any payment of rent or
additional rent which Tenant might have paid for more than one month in advance
of the due date under the Lease to any prior Landlord (including, without
limitation, the then defaulting Landlord), or

(d)                    bound by any obligation to make any
payment to Tenant which was required to be made prior to the time Lender
succeeded to any prior Landlord’s interest, or

(e)                     accountable for any monies deposited
with any prior Landlord (including security deposits), except to the extent
such monies are actually received by Lender, or

(f)                       bound by any amendment or modification
of the Lease made without the written consent of Lender (unless such amendment
or modification does not require the consent of Lender under the terms of the
Security Documents).

Nothing contained herein shall prevent Lender from naming Tenant in
any foreclosure or other action or proceeding initiated in order for Lender to
avail itself of and complete any such foreclosure or other remedy, subject to
Paragraph 2 hereof.

5.                          Tenant hereby agrees to give to Lender
copies of all notices of Landlord defaults under the Lease in the same manner
as, and whenever, Tenant shall give any such notice of default to Landlord.
Lender shall have the right but no obligation to remedy any Landlord default
under the Lease, or to cause any default of Landlord under the Lease to be
remedied, and for such purpose Tenant hereby grants Lender, in addition to the
period given to Landlord for remedying defaults, an additional thirty (30) days
to remedy, or cause to be remedied, any such default. Tenant shall accept
performance by Lender of any term, covenant, condition or agreement to be
performed by Landlord under the Lease with the same force and effect as though
performed by Landlord. Tenant agrees not to exercise any remedies it may have
against Landlord in connection with any such Landlord default (i) as long as
Lender, in good faith, shall have commenced to cure such default within the
above-referenced time period and shall be prosecuting the same to completion
with reasonable diligence, or (ii) if possession of the Premises is required

 F-3
 

in order to cure such default, or if such default is not susceptible
of being cured by Lender, as long as Lender, in good faith, shall have notified
Tenant that Lender intends to institute proceedings under the Security
Documents, and, thereafter, as long as such proceedings shall have been
instituted and shall be prosecuted with reasonable diligence but, in no event,
shall Lender have a period of time in excess of one hundred twenty (120) days
from receipt of a default notice from Tenant to cure any default. Upon Lender’s
written request, given within such one hundred twenty (120) day period, Tenant,
within thirty (30) days after receipt of such request, shall execute and
deliver to Lender or its designee or nominee a new lease of the Premises for
the remainder of the term of the Lease upon all of the terms, covenants and
conditions of the Lease. Neither Lender nor its designee or nominee shall
become liable under the Lease unless and until Lender or its designee or
nominee becomes, and then only with respect to periods in which Lender or its
designee or nominee remains, the owner of the Real Property. Lender shall have
the right, without Tenant’s consent, to foreclose the Mortgage or to accept a
deed in lieu of foreclosure of the Mortgage or to exercise any other remedies
under the Security Documents.

6.                          Tenant has no knowledge of any other
assignment or pledge of the rents accruing under the Lease by Landlord. Tenant
hereby acknowledges the making of the Assignment from Landlord to Lender in
connection with the Loan. Tenant acknowledges that the interest of the Landlord
under the Lease is to be assigned to Lender solely as security for the purposes
specified in said assignments, and Lender shall have no duty, liability or
obligation whatsoever under the Lease or any extension or renewal thereof,
either by virtue of said assignments or by any subsequent receipt or collection
of rents thereunder, unless Lender shall specifically undertake such liability
in writing.

7.                          If Tenant is a corporation, each
individual executing this Agreement on behalf of said corporation represents
and warrants that s/he is duly authorized to execute and deliver this Agreement
on behalf of said corporation, in accordance with a duly adopted resolution of
the Board of Directors of said corporation or in accordance with the by-laws of
said corporation, and that this Agreement is binding upon said corporation in
accordance with its terms. If Tenant is a partnership, each individual
executing this Agreement on behalf of said partnership represents and warrants
that she is duly authorized to execute and deliver this Agreement on behalf of
said partnership in accordance with the partnership agreement for said
partnership.

 F-4
 

8.                          Any
notice, election, communication, request or other document or demand required
or permitted under this Agreement shall be in writing and shall be deemed
delivered on the earlier to occur of (a) receipt or (b) the date of delivery,
refusal or nondelivery indicated on the return receipt, if deposited in a
United States Postal Service Depository, postage prepaid, sent certified or
registered mail, return receipt requested, or if sent via recognized commercial
courier service providing for a receipt, addressed to Tenant or Lender, as the
case may be, at the following addresses:

	
   

  	
  If to Tenant:

  	
  Frederic R. Harris,
  Inc.

  605 Third Avenue

  New York, New York 10158

  Attention: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
  If to Lender:

  	
  GMAC Commercial
  Mortgage

  on behalf of

  LaSalle National Bank

  650 Dresher Road

  P.O. Box 1015

  Horsham, PA 19044

  Attention:

  

 

9.                          The term “Lender” as used
herein includes any successor or assign of the named Lender herein, including
without limitation, any co-lender at the time of making the Loan, any purchaser
at a foreclosure sale and any transferee pursuant to a deed in lieu of
foreclosure, and their successors and assigns, and the term “Tenant” as
used herein includes any successor and assign of the named Tenant herein.

10.                    If any provision of this Agreement is
held to be invalid or unenforceable by a court of competent jurisdiction, such
provision shall be deemed modified to the extent necessary to be enforceable,
or if such modification is not practicable such provision shall be deemed
deleted from this Agreement, and the other provisions of this Agreement shall
remain in full force and effect.

11.                    Neither this Agreement nor any of the
terms hereof may be terminated, amended, supplemented, waived or modified
orally, but only by an instrument in writing executed by the party against
which enforcement of the termination, amendment, supplement, waiver or
modification is sought.

 F-5
 

12.                    This Agreement shall be construed in
accordance with the laws of the State of New York.

 F-6
 

Witness
the execution hereof as of the date first above written.

	
  

  	
   

  	
  [LENDER]

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

	
  

  	
   

  	
  [TENANT]

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

The undersigned Landlord hereby consents to
the foregoing Agreement and confirms the facts stated in the foregoing
Agreement.

	
  

  	
   

  	
  [LANDLORD]

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
  Title:

  	
   

  
							

 

 F-7
 

EXHIBIT A

All
that certain plot, piece or parcel of land, situate, lying and being in the
Borough of Manhattan, City, County and State of New York, bounded and described
as follows:

BEGINNING
at the corner formed by the intersection of the southerly side of 40th Street
with the easterly side of Third Avenue;

RUNNING
THENCE easterly, along the southerly side of East 40th Street, 355 feet;

THENCE
southerly, parallel with Third Avenue, 135 feet 9 inches;

THENCE
easterly, parallel with 40th Street, 4 feet 7 inches to a point in a line drawn
parallel with and distant 250 feet 5 inches westerly from the westerly side of
Second Avenue;

THENCE
southerly, parallel with Second Avenue and part of the distance through a party
wall, 61 feet 9 inches to the northerly side of East 39th Street;

THENCE
westerly, along the northerly side of East 39th Street, 359 feet 7 inches to
the corner formed by the intersection of the northerly side of East 39th Street
and the easterly side of Third Avenue;

THENCE
northerly, along the easterly side of Third Avenue, 197 feet 6 inches to the
corner, the point or place of beginning.

Block
920, Lot 12

 F-8
 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  :

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On this                       
day of                                   ,
1999, before mepersonally
came                                       ,
to me known, who, being duly sworn by me, did depose and say that he resides at
                                            ;
that he is the                                           
ofFREDERIC R.
HARRIS, INC., a New York corporation, the corporation mentioned in, and which
executed the foregoing instrument; 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.

 

	
  

  	
   

  
	
   

  	
  Notary Public

  

 

 F-9
 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On the                         
day of                                   ,
199  , before mepersonally came                                 
to me known, who, being by meduly
sworn, did depose and say that (s) he resides at                                                     ; that (s) he
is the                                     
of
FB 605 CORP., a New York corporation, whichcorporation is a managing member of 605 THIRD AVENUE LLC, the limited
liability company described in and which executed the foregoing instrument; and
that (s) he signed his/her name thereto by order of the board of directors of
said corporation on behalf of said limited liability company.

 

	
  

  	
   

  
	
   

  	
  Notary Public

  

 

 F-10
 

 

	
  STATE OF NEW YORK

  	
  )

  	
   

  
	
   

  	
  )

  	
  ss.:

  
	
  COUNTY OF NEW YORK

  	
  )

  	
   

  

 

On the                     
day of                                 ,
199  , before me personally came                                 ,
to me known, who, being by me duly sworn, did depose and say that (s) he
resides at                                                                                         ;
that (s) he is the                                 
of HAWAIIAN 605 SPECIAL CORP., a New York corporation, which corporation is a
managing member of 605 THIRD AVENUE LLC, the limited liability company
described in and which executed the foregoing instrument; and that (s)he signed
his/her name thereto by order of the board of directors of said corporation on
behalf of said limited liability company.

 

	
  

  	
   

  
	
   

  	
  Notary Public

  

 

 F-11

EXHIBIT
G

Certificate
of Occupancy

 G-1

[ILLEGIBLE]

DEPARTMENT OF BUILDINGS

BOROUGH OF MANHATTAN THE CITY OF NEW YORK

	
  Date    September
  2, 1965

  	
  No : 62010

  

                                                

CERTIFICATE
OF OCCUPANCY

NO CHANGES OF USE OR
OCCUPANCY NOT CONSISTENT WITH THIS CERTIFICATE SHALL BE MADE UNLESS FIRST
APPROVED BY THE BOROUGH SUPERINTENDENT

This certificate [ILLEGIBLE] C.O. No. 58727 and 60470

THIS CERTIFIES that the XXXX [ILLEGIBLE] XXXXXXX building premises located at 601-17 -3rd
Avenue: 200-14 East 40th
Street                  [ILLEGIBLE] 920 [ILLEGIBLE].

That the [ILLEGIBLE]
and premises above referred to are situated,
[ILLEGIBLE] and described as
follows:

BEGINNING at a point on the east side of 3rd Avenue

[ILLEGIBLE] 0° -0° feet south from the
corner formed by the innersection of 3rd Avenue and East 40th Street.

	
  running thence east 355° -0° feet

  	
  :

  	
  thence south 135° -9° feet:

  
	
  thence              east 4° -7° feet

  	
  :

  	
  thence south 51° -9° feet:

  
	
  running thence west 359° -7° feet

  	
  :

  	
  thence north 197° -6° feet:

  

 

to the point or place of beginning conforms substantially to the
approved plans and specifications and to the requirements of the Building Code,
the Zoning Resolution and all
other laws and ordinances, and of [ILLEGIBLE]
of the Board of Standards and Appeals, applicable in a building if he [ILLEGIBLE] and kind at the time the permit was
issued; and 

CERTIFIES FURTHER that, any provisions of Section [ILLEGIBLE] of the New York Charter
have been complied with as
certified by a report at the Fire Commissioner to the Borough Superintendent.

	
  [ILLEGIBLE] AR. No.- 700-1964

  	
  Construction
  classification- Class I Pinproof

  
	
   

  	
   

  
	
  Company
  classification-Commercial Building,

  	
  Height 43 stories,
  519° -3° feet.

  
	
  Date of
  completion- August 30, 1965,

  	
  Located in C 5-3
  Zoning District.

  
			

on time of Issuance of permit, 4460-1965

	
  This certificate
  [is issued] subject to the limitations hereinafter specified and to
  the following [ILLEGIBLE] of
  the Board of Standards and Appeales and The City Planning Commissions

  	
  }

  	
  [ILLEGIBLE]

  

 

PERMISSIBLE
USE AND OCCUPANCY

Off-Street Parking Space 

Off-Street Loading [ILLEGIBLE]

	
  STORY

  	
   

  	
  LIVE LOADS

  [ILLEGIBLE]

  	
   

  	
  PERSONS

  ACCOMMODATED

  	
   

  	
  USE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cellar

  	
   

  	
  On ground

  	
   

  	
  120

  	
   

  	
  Stores, superintendent’s workshop, offices, back
  space, locker rooms, building offices and utilities.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1st Story

  	
   

  	
  100 & 175

  	
   

  	
  560

  	
   

  	
  Bank space, stores, storage and four (4) loading
  barthe.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2nd Story

  	
   

  	
  80

  	
   

  	
  330

  	
   

  	
  [ILLEGIBLE], storage
  and services and repair of small business machines, [ILLEGIBLE] group 9, (not more that twenty five (25) persons at
  manufacturing.)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3rd to 6th
  Stories

  	
   

  	
  50 each

  	
   

  	
  330 each

  	
   

  	
  Offices on each story.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  7th Story

  	
   

  	
  50 & 100

  	
   

  	
  330

  	
   

  	
  Offices and A.C. fan room.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  8th to 10th
  Story, Incl.

  	
   

  	
  50 each

  	
   

  	
  330 each

  	
   

  	
  Offices on each story.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  11th & 12th
  Stories

  	
   

  	
  50 each

  	
   

  	
  220 each

  	
   

  	
  Offices on each story

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  13th to 26th
  Story, Incl.

  	
   

  	
  50 each

  	
   

  	
  135 each

  	
   

  	
  Offices on each story.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  27th Story

  	
   

  	
  50 & 100

  	
   

  	
  135

  	
   

  	
  Offices and A.C. fan room.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  28th to 40th
  Story, Incl.

  	
   

  	
  50 each

  	
   

  	
  135each

  	
   

  	
  Offices on each story.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  41st Story

  	
   

  	
  50

  	
   

  	
  135

  	
   

  	
  Offices and cooling tower.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  - OYSE -

  	
   

  	
   

  

 

	
  OFFICE COPY—DEPARTMENT OF BUILDINGS

  	
   

  	
  [ILLEGIBLE]

  

 

[ILLEGIBLE]

	
  [ILLEGIBLE]

  	
  [ILLEGIBLE]

  

 

	
  STORY

  	
   

  	
  LIVE LOADS

  [ILLEGIBLE]

  	
   

  	
  PERSONS

  ACCOMMODATED

  	
   

  	
  USE

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  42nd Story

  	
   

  	
  50

  	
   

  	
  235

  	
   

  	
  Employees eating and drinking areas, offices and
  cooling tower.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  43rd Story

  	
   

  	
  50

  	
   

  	
  135

  	
   

  	
  Offices and cooling tower.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Tower

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Elevator [ILLEGIBLE], horse tank and cooling tower.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NOTE:

  	
   

  	
  Garage located at 222-228 East 40th Street is accessory
  to this building.

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  NOTE:

  	
   

  	
  This application [ILLEGIBLE] Certificate of
  Occupancy [ILLEGIBLE] to [ILLEGIBLE].

  

 

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  STATE OF NEW
  YORK         )

  	
  SS:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  COUNTY OF [ILLEGIBLE]   )

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  This is to certify that this is a

  true copy of a record in the custody of

  The Department of Buildings of the City

  of New York.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  1/6/99

  	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Date

  	
   

  	
  Certifying Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  [ILLEGIBLE]

  	
   

  
											

 

	
  [ILLEGIBLE]

  	
   

  	
  [ILLEGIBLE]

  

 

EXHIBIT H

RULES AND REGULATIONS

1.                          The sidewalks, and public portions of
the Building, such as entrances, passages, courts, elevators, vestibules,
stairways, corridors or halls shall not be obstructed or encumbered by any
tenant or used for any purpose other than ingress and egress to and from the
demised premises.

2.                          No awnings or other projections shall
be attached to the outside walls of the Building. No curtains, blinds, shades,
louvered openings or screens shall be attached to or hung in, or used in connection
with, any window or door of the demised premises, without the prior written
consent of Landlord, unless installed by Landlord.

3.                          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 Building or on corridor
walls. Signs on entrance door or doors shall conform to building standard
signs, samples of which are on display in Landlord’s rental office. Signs on
doors shall, at the tenant’s expense, be inscribed, painted or affixed for each
tenant by sign makers approved by Landlord, which approval shall not be
unreasonably withheld, conditioned or delayed. In the event of the violation of
the foregoing by any tenant, Landlord may remove same without any liability,
and may charge the expense incurred by such removal to the tenant or tenants
violating this rule.

4.                          The sashes, sash doors, skylights,
windows, heating, ventilating and air conditioning vents and doors that reflect
or admit light and air into the halls, passageways or other public places in
the Building shall not be covered or obstructed by any tenant, nor shall any
bottles, parcels, or other articles be placed outside of the demised premises.

5.                          No show cases or other articles shall
be put in front of or affixed to any part of the exterior of the Building, nor
placed in the public halls, corridors or vestibules without the prior written
consent of Landlord.

6.                          Intentionally Deleted.

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

 H-1
 

who, or whose servants, employees,
agents, visitors or licensees, shall have caused the same.

8.                          No tenant shall in any way deface any
part of the demised premises or the Building of which they are a part. 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.

9.                          No bicycles, vehicles or animals of
any kind (except seeing eye dogs) shall be brought into or kept in or about the
premises. No cooking shall be done or permitted by any Tenant on said premises
except in conformity to law and then only in the utility kitchen, if any, as
set forth in Tenant’s layout, which is to be primarily used by Tenant’s
employees for heating beverages and light snacks. No tenant shall cause or
permit any unusual or objectionable odors to be produced upon or permeate from
the demised premises.

10.                    No space in the Building shall be used
for the distribution or for the storage of merchandise or for the sale at
auction or otherwise of merchandise, goods or property of any kind.

11.                    No tenant shall make, or permit to be
made, any unseemly or disturbing noises or disturb or interfere with occupants
of the Building or neighboring buildings or premises or those having business
with them, whether by the use of any musical instrument, radio, talking
machine, unmusical noise, whistling, singing, or in any other way. No tenant
shall throw anything out of the doors or windows or down the passageways.

12.                    No tenant, nor any of the tenant’s
servants, employees, agents, visitors or licensees, shall at any time bring or
keep upon the demised premises any inflammable, combustible or explosive fluid,
or chemical substance, other than reasonable amounts of cleaning fluids and
solvents and office products required in the normal operation of tenant’s
business offices.

13.                    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 the mechanism thereof, without the
prior written approval of the Landlord and unless and until a duplicate key is
delivered to Landlord. Each tenant must, upon the termination of his

 H-2
 

tenancy, return to the Landlord all keys of stores, offices and toilet
rooms, either furnished to, or otherwise procured by, such tenant, and in the
event of the loss of any keys so furnished, such tenant shall pay to Landlord
the cost thereof.

14.                    All removals, or the carrying in or
out of any safes, freight, furniture or bulky matter of any description must
take place during the hours which Landlord or its agent may reasonably
determine from time to time.

15.                    No tenant shall occupy or permit any
portion of the premises demised to it to be occupied as, by or for a public
stenographer or typist, barber shop, bootblacking, beauty shop or manicuring,
beauty parlor, telephone or telegraph agency, telephone or secretarial service,
messenger service, travel or tourist agency, employment agency, public
restaurant or bar, commercial document reproduction or offset printing service,
public vending machines, retail, wholesale or discount shop for sale of
merchandise, retail service shop, labor union, school or classroom,
governmental or quasi-governmental bureau, department or agency, including an
autonomous governmental corporation, a firm the principal business of which is
real estate brokerage, or a company engaged in the business of renting office
or desk space; or for a public finance (personal loan) business, or for
manufacturing. No tenant shall engage or pay any employees on the demised
premises, except those actually working for such tenant on said premises, nor
advertise for laborers giving an address at said premises.

16.                    Landlord shall have the right to
prohibit that portion of any advertising by any tenant mentioning the Building
which, in Landlord’s reasonable opinion, impairs the reputation of the Building
or its desirability as a building for offices, and upon written notice from
Landlord, tenants shall refrain from or discontinue that portion of such
advertising.

17.                    In order that the Building can and
will maintain a uniform appearance to those outside of same, each Tenant in
building perimeter areas shall (a) use only building standard lighting in areas
where lighting is visible from the outside of the Building and (b) use only
building standard venetian or vertical blinds in window areas which are visible
from the outside of the Building.

18.                    Landlord reserves the right to exclude
from the Building between the hours of 6:00 P.M. and 8:00 A.M. and at all hours
on non-business days all persons who do not present a pass to the Building
signed by a tenant. Each tenant shall be responsible for all persons for whom
such pass is issued

 H-3
 

and shall be liable to Landlord for
all acts of such persons. Landlord shall issue passes without charge to Tenant
(but subject to recoupment under Article 5 of the Lease), upon Tenant’s
request, to Tenant and its designated employees.

19.                    The premises shall not be used for
lodging or sleeping or for any immoral or illegal purpose.

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

21.                    Intentionally Deleted.

22.                    Canvassing, soliciting and peddling in
the Building are prohibited and each tenant shall cooperate to prevent the
same.

23.                    There shall not be used in any space,
or in the public halls of any building, either by any tenant or by jobbers or
others, in the delivery or receipt of merchandise, any hand trucks, except
those equipped with rubber tires and side guards. No hand trucks shall be used
in passenger elevators.

24.                    Tenants, in order to obtain maximum
effectiveness of the cooling system, shall lower and/or close venetian or
vertical blinds or drapes when sun’s rays fall directly on windows of demised
premises.

25.                    Replacement of ceiling tiles after
they are removed for Tenant by telephone company installers, in both the
demised premises and the public corridors, will be charged to Tenant on a per
tile basis (to the extent they cannot be reused).

26.                    All paneling, grounds or other wood
products not considered furniture shall be of fire retardant materials. Before
installation of any such materials, certification of the materials’ fire
retardant characteristics shall be submitted to Landlord, or its agents, in a
manner satisfactory to the Landlord.

Whenever and to the
extent that the above rules conflict with any of the rights or obligations of
Tenant pursuant to the provisions of the Articles of this Lease, the provisions
of the Articles shall govern.

 H-4

EXHIBIT I

HEATING, VENTILATION AND
AIR CONDITIONING

The peripheral and interior systems will be automatically
controlled to achieve a design standard that is capable of providing (a) air
conditioning at a dry bulb temperature of 78 degrees Fahrenheit when the
outdoor dry bulb temperature is 95 degrees Fahrenheit, and the outdoor wet bulb
is 75 degrees Fahrenheit, (b) heat at 70 degrees Fahrenheit in zero degrees
Fahrenheit weather and (c) proper ventilation for the interior spaces at all
seasons of the year.

This specification is predicated on
occupancy of one person per 100 usable square feet and is subject to the
provisions of Section 32.2 of the Lease, to which this Exhibit I is attached,
which are applicable to Tenant.

 I-1

EXHIBIT J

CLEANING SPECIFICATIONS

SECTION 1.           Regular Cleaning - done nightly and as needed.

1.      Empty and dust or wipe all cigarette
ashtrays and urns nightly, and replace sand or water as needed.

2.      Empty all dry
waste in wastepaper baskets nightly.

3.      Sweep and dust mop all uncarpeted
private stairways and floors nightly.

4.      Vacuum all exposed rugs and carpeted
areas weekly.

5.      Dust and wipe all glass and table tops
nightly.

6.      Wash clean all water fountain tops
nightly.

7.      Dust and wipe desk tops, furniture
tops and window sills within normal reach, as needed.

8.      Clean all slop sinks, slop closets,
locker areas and store all cleaning equipment nightly.

9.      Lock all entrance doors nightly after
completion of cleaning.

SECTION 2.           Periodic Cleaning - done as specified.

1.      Wipe clean normal amount of interior
metal as needed.

2.      Dust door louvers and other
ventilating louvers quarterly.

3.      Dust venetian blinds quarterly.

4.      Clean all windows, inside and outside,
approximately once every 5 weeks, weather and scaffolding conditions permitting
(with respect only to the outside of the windows).

5.      Clean normal amount, but in no event
an amount in excess of 25% of interior partitions or interior partition glass
quarterly.

 J-1
 

6.      High dust pictures, frames, charts,
graphs and similar wall hangings not reached in nightly cleaning, overhead
pipes and sprinklers quarterly.

SECTION 3.           Lavatory cleaning, other than executive lavatories.

1.      Mop floors nightly; polish mirrors,
powder shelves, bright work (including flushometers, piping, and toilet seat
hinges), if not clean and bright, nightly; wash sinks, urinals and bowls,
nightly.

2.      Wash both sides of all toilet seats
with soap and water nightly.

3.      Wash tile walls with a disinfectant
monthly.

4.      Fill and clean all soap, towel, toilet
tissue and sanitary napkin dispensers as needed, supplies therefor to be
furnished by Landlord at a reasonable charge to Tenant. If the demised premises
consists of a part of a rentable floor, said charge to Tenant shall be that
portion of a reasonable charge for such supplies that is reasonably allocable
to Tenant.

5.      Empty and clean all wastepaper cans
and other receptacles nightly.

6.      Wash down tiled walls and enameled
stalls from trim to floor once a month.

7.      Scrub all floors as needed.

 J-2

  EXHIBIT K
  GUARANTY OF LEASE
  	  DEMISED PREMISES:
  	   
  	  30th and 31st
  floors

  605 Third Avenue

  New York, New York
  
	   
  	   
  	   
  
	  LANDLORD:
  	   
  	  605 Third Avenue
  LLC
  
	   
  	   
  	   
  
	  TENANT:
  	   
  	  Frederic R. Harris,
  Inc.
  
	   
  	   
  	   
  
	  DATE OF LEASE AND THIS GUARANTY:
  	   
  	  As of
  

   
  1.             In consideration of, and as an
inducement for, the granting, execution and delivery of the above-captioned
lease (the “Lease”) and in further consideration of the sum
of One ($1.00) Dollar and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the undersigned, AECOM
TECHNOLOGY CORPORATION, a corporation, having offices at 3250 Wilshire Blvd,
Los Angeles, CA 90010, hereby absolutely, unconditionally and irrevocably
guarantees to Land­lord and its successors and assigns the full and prompt
performance and observance of all of Tenant’s obligations under the Lease,
including, without limitation, the full and prompt payment of all fixed annual
rent and additional rent (as such terms are defined in the Lease) and any and
all damages payable by Tenant under or with respect to the Lease, all
irrespective of the validity, binding effect, legality or enforceability of the
Lease or whether the Lease shall have been duly authorized, executed or
delivered by Tenant, or any other circumstance which might now or hereafter or
otherwise constitute a legal or equitable discharge or defense of a guarantor.
As used herein, the term “Guarantor” shall be deemed to include the above named
Guarantor and its successors and assigns (whether by way of merger, sale of
capital stock, assets or otherwise). Without limiting Guarantor’s obligations
as otherwise set forth in this Guaranty (except to the extent otherwise
specifically provided in this paragraph), Guarantor hereby covenants and agrees
with Landlord that if a default shall at any time occur in the payment of any
fixed annual rent or additional rent, Guarantor shall and will forthwith upon
demand to Guarantor pay such fixed annual rent or additional rent and any
arrears thereof to Landlord in legal currency of the United States of America
for payment of public and private debts.

 K-1
 

    2.             This Guaranty is an absolute,
present, continuing, unconditional and irrevocable guaranty of payment and
performance (and not merely of collection). This Guaranty shall be enforceable
against Guarantor without the necessity of any suit or proceedings on
Landlord’s part of any kind or nature whatsoever against Tenant and without the
necessity of any notice of nonpayment, non-performance or non-observance, or any
notice of acceptance of this Guaranty, or any other notice or demand to which
Guarantor might otherwise be entitled, all of which Guarantor hereby expressly
waives; provided, however, that Landlord agrees that simultaneously with the
sending of any notice of default to Tenant, Landlord shall send a copy of such
notice of default to Guarantor; provided, further, that the failure of Landlord
to so send any such notice to Guarantor shall in no way void, vitiate or
otherwise impair any notice of default delivered to Tenant or release Guarantor
from any of its obligations hereunder (the parties acknowledging that the
sending of such copy to Guarantor is solely as a convenience for Guarantor).
  3.             Guarantor hereby expressly agrees
that the validity of this Guaranty and the obligations and liability of
Guarantor hereunder shall in no way be terminated, affected, diminished or
impaired by reason of (a) the assertion of or the failure by Landlord to assert
against Tenant any of the rights or remedies reserved to Landlord pursuant to
the terms, covenants and conditions of the Lease, or (b) any assignment of the
Lease or subletting of all or any portion of the Demised Premises, or (c) any
renewal or extension of the Lease or any modification thereof, whether pursuant
to the Lease or by subsequent agreement of Landlord and Tenant, or (d) any
waiver, consent, indulgence, forbearance, lack of diligence or other action,
inaction or omission under or in respect of the Lease or the Demised Premises,
or (e) any default by or limitation on the liability of Tenant under the Lease
or of Guarantor hereunder, or (f) any irregularity, invalidity or
unenforceability (whether by reason of any immunity enjoyed by Tenant or
otherwise) in whole or in part in or of the Lease or the obligations or
liabilities of Tenant thereunder, or (g) any bankruptcy, insolvency,
reorganization, arrangement, composition, liquidation, rehabilitation,
assignment for the benefit of creditors, receivership or trusteeship, or
similar or dissimilar proceeding or circumstance involving or affecting Tenant
or Tenant’s successors or assigns whether or not notice thereof is given to
Guarantor (any limitation on or discharge of the liability of Tenant in such
proceeding shall not diminish, limit, impair, abate, deter, modify or otherwise
affect the liability of the Guarantor), or (h) any claim, counterclaim, cause
of action, offset, recoupment or other right or remedy which Tenant may at any
time have against Landlord (other than a claim resulting from Landlord’s failure
to perform in accordance with the terms of the

 K-2
 

    Lease after the expiration of
applicable grace, cure and notice periods and other than a claim by Tenant with
respect to the Work Credit (as defined in Section 3.2 of the Lease)), or (i)
any conveyance, extinguishment, merger or other transfer, voluntary or
involuntary (whether by operation of law or otherwise), of all or any part of
the interest of Tenant in the Lease or the Demised Premises.
  4.             Guarantor agrees that whenever at
any time or from time to time Guarantor shall make any payment to Landlord on
account of the liability of Guarantor hereunder, Guarantor will notify Landlord
in writing that such payment is for such purpose. No such payment by Guarantor
pursuant to any provision hereof shall entitle Guarantor, by subrogation or
otherwise, to the rights of Landlord to any payment by Tenant or out of the
property of Tenant, except after full satisfaction of all of Tenant’s
obligations theretofore coming due under the Lease, including, without limitation,
payment in full of all fixed annual rent and additional rent due.
  5.             Guarantor agrees that it will, at
any time and from time to time, within ten (10) business days following written
request by Landlord, execute, acknowledge and deliver to Landlord a statement
certifying that this Guaranty is unmodified and in full force and effect (or if
there have been modifications, that the same is in full force and effect as
modified and stating such modifications). Guarantor agrees that such
certificates may be relied on by anyone holding or proposing to acquire any
interest in the Building from or through Landlord or by any mortgagee or ground
lessor.
  6.             Guarantor represents and warrants
to Landlord as follows:
  6.1           Guarantor
is a corporation duly organized and validly existing under the laws of
Delaware.
  6.2           Guarantor
has the full power, authority and legal right to execute and deliver, and to
perform its obligations under this Guaranty including the payment of all moneys
hereunder. This Guaranty constitutes the legal, valid and binding obligation of
Guarantor enforceable in accordance with its terms, except as enforcement
hereof may be limited by (a) bankruptcy, insolvency, moratorium, reorganization
or other similar laws affecting creditors’ rights generally or (b) the
non-availability of equitable remedies.
  6.3           The
execution, delivery and performance by Guarantor of this Guaranty have been
duly authorized by all necessary corporate action.

 K-3
 

    6.4           No
authorization, approval, consent, filing or permission (governmental or
otherwise) of any court, agency, commission or other authority or entity is
required for the due execution, delivery, performance or observance by
Guarantor of this Guaranty or for the payment of any sums hereunder. Guarantor
agrees that if any such authorization, approval, consent, filing or permission
shall be required in the future in order to permit or effect performance of the
obligations of Guarantor under this Guaranty, Guarantor shall promptly inform
Landlord or any of its successors or assigns and shall use its best efforts to
obtain such authorization, approval, consent, filing or permission.
  6.5           Neither
the execution or delivery of this Guaranty, nor the consummation of the
transactions herein contemplated, nor the compliance with the terms and
provisions hereof, conflict or will conflict with or result in a breach of (a)
any of the terms, conditions or provisions of the formation and operating
documents of Guarantor, (b) any law, order, writ, injunction or decree of any
court or government authority or (c) any agreement or instrument to which
Guarantor is a party or by which it is bound, in each case, which would
materially adversely affect the ability of Guarantor to perform its obligations
under this Guaranty. Guarantor is not in default under any contract, agreement
or commitment to which it is a party or by which it or any of its property is
bound or subject where the default would materially adversely affect the
ability of Guarantor to perform its obligations under this Guaranty.
  6.6           Guarantor
is in compliance with the requirements of all applicable laws, rules,
regulations, ordinances and orders applicable to Guarantor where noncompliance
would materially adversely affect the ability of Guarantor to perform its
obligations under this Guaranty.
  7.             Guarantor
covenants and agrees as follows:
  7.1           Subject
to Section 7.2 hereof, Guarantor will maintain its corporate existence so long
as this Guaranty is outstanding, and will promptly notify Landlord of any: (a)
material failure of Guarantor to comply with or satisfy any covenant, condition
or agreement to be complied with or satisfied by it hereunder, provided,
however, that such disclosure shall not be deemed to cure any breach of
a

 K-4
 

    representation, warranty, covenant or
agreement or to satisfy any condition; or (b) change in the ownership or
control of Tenant or Guarantor.
  7.2           Any
merger or combination to which Guarantor is a party shall be preconditioned
upon the surviving entity expressly assuming the obligations of Guarantor
pursuant to this Guaranty (unless same shall occur as a matter of law). In
addition, the surviving entity shall reaffirm Guarantor’s obligations under
this Guaranty by executing and delivering such resolutions, authorizations and
confirmations as Landlord shall reasonably request, all in form reasonably
acceptable to Landlord.
  8.             It
is a condition of the grant, execution and delivery of the Lease that Guarantor
execute and deliver this Guaranty. Guarantor acknowledges and agrees that the
grant, execution and delivery of the Lease by Tenant is in Guarantor’s best
interests and, as the ultimate parent company of Tenant, Guarantor expects to
derive benefit therefrom. Guarantor makes this Guaranty knowing that Landlord
will rely hereon in leasing the Demised Premises to Tenant. Guarantor
conclusively acknowledges that Landlord’s reliance hereon is in every respect
justifiable and Guarantor received adequate and fair equivalent value for this
Guaranty.
  9.             Guarantor
acknowledges and agrees that all disputes arising, directly or indirectly, out
of, or relating to, this Guaranty may be dealt with and adjudicated in the
state courts of New York or the Federal courts sitting in New York. Guarantor
hereby expressly and irrevocably submits the person of Guarantor to the
jurisdiction of such courts in any suit, action or proceeding arising, directly
or indirectly, out of, or relating to, this Guaranty. So far as is permitted
under the applicable law, this consent to personal jurisdiction shall be self
operative and no further instrument or action, other than service of process in
one of the manners specified in this Guaranty, or as otherwise permitted by
law, shall be necessary in order to confer jurisdiction upon the person of
Guarantor in any such court.
  10.           Provided
that service of process is effected upon Guarantor in the manner prescribed by
law, Guarantor irrevocably waives, to the fullest extent permitted by law, and
agrees not to assert, by way of motion, as a defense or otherwise, (a) any
objection which it may have or may hereafter have to the laying of the venue of
any such suit, action or proceeding brought in such a court as is mentioned in
the previous paragraph (except Tenant shall have the right to remove to the
Federal courts sitting in the State of New York, as referred to in Section 9 of

 K-5
 

    this Guaranty), (b) any claim that any
such suit, action or proceeding brought in such a court has been brought in an
inconvenient forum or (c) any claim that it is not personally subject to the
jurisdiction of the above-named courts. Provided that service of process is
effected upon Guarantor in one of the manners hereafter specified in this
Guaranty or as otherwise permitted by law, Guarantor agrees that final judgment
from which Guarantor has not or may not appeal or further appeal in any such
suit, action or proceeding brought in such a court of competent jurisdiction
shall be conclusive and binding upon Guarantor and may, so far as is permitted
under applicable law, be enforced in the courts of any state or any Federal
court and in any other courts to the jurisdiction of which Guarantor is
subject, including, without intending any limitation, as to the Guarantor, the
courts of New York by a suit upon such judgment and that Guarantor will not
assert any defense, counterclaim, or set off in any such suit upon such
judgment.
  11.           Guarantor hereby irrevocably
designates and appoints R. Keefe Griffith, Esq., AECOM Technology Corporation,
3250 Wilshire Blvd, Los Angeles, CA 90010 (“Agent”), as its authorized
agent to accept and acknowledge on its behalf service of any and all process
which may be served in any suit, action or proceeding of the nature referred to
in this Guaranty in any state court of New York or Federal court sitting in New
York. Agent, by executing this Guaranty, irrevocably consents to and accepts
its designation and appointment as agent for service of process upon Guarantor.
Said designation and appointment shall be irrevocable until the date upon which
the Lease term, including any extension thereof, expires. Agent covenants and agrees
that it shall not cease so to act unless and until Guarantor shall have
irrevocably designated and appointed another such agent or agents satisfactory
to Landlord and shall have delivered to Landlord or any of its successors or
assigns evidence in writing of such other agent’s acceptance of such
appointment, and any attempt by such agent to cease to so act shall be
ineffective and without force or effect unless the foregoing provisions of this
sentence shall be complied with.
  12.           Guarantor agrees to execute, deliver
and file all such further instruments as may be necessary under the laws of New
York, in order to make effective (a) the appointment of Agent as agent for
service of process, (b) the consent of Guarantor to jurisdiction of the state
courts of New York and the Federal courts sitting in New York and (c) the other
provisions of this Guaranty.
  13.           Guarantor hereby consents to process
being served in any suit, action or proceeding of the nature referred to in
this Guaranty (in the manner prescribed by law) at 605 Third Avenue,

 K-6
 

    New York, New York or to any other
address of which Guarantor shall have given written notice to Landlord.
  14.           Guarantor represents and warrants
that it is not entitled to immunity from judicial proceedings and agrees that,
in the event Landlord brings any suit, action or proceeding in New York or any
other jurisdiction to enforce any obligation or liability of Guarantor arising,
directly or indirectly, out of or relating to this Guaranty, no immunity from
such suit, action or proceeding will be claimed by or on behalf of Guarantor.
  15.           Nothing in this Guaranty shall affect
the right of Landlord to serve process in any manner permitted by law or limit
the right of Landlord or any of its successors or assigns to bring proceedings
against Guarantor in the courts of any jurisdiction or jurisdictions.
  16.           Should Landlord be obligated by any
bankruptcy or other law to repay to Tenant or Guarantor or to any trustee,
receiver or other representative of either of them, any amounts previously
paid, then this Guaranty shall be reinstated in the amount of such repayment.
Landlord shall not be required to litigate or otherwise dispute its obligation
to make such repayments if it in good faith and on the advice of counsel
believes that such obligation exists.
  17.           The prevailing party in any action
relating to the collection, enforcement and performance of this Guaranty shall
be entitled (in addition to any other recovery from such action) to recover all
costs and expenses, howsoever denominated (including reasonable attorneys’ fees
and disbursements) incurred in connection with such action. All such amounts
owing hereunder shall be paid by the party so owing such amounts upon written
demand therefor and any amounts so owed by Guarantor to Landlord shall be
deemed additional obligations of Guarantor under this Guaranty.
  18.           All remedies afforded to Landlord by
reason of this Guaranty are separate and cumulative remedies and it is agreed
that no one of such remedies, whether exercised by Landlord or not, shall be
deemed to be in exclusion of any other remedy available to Landlord and shall
not limit or prejudice any other legal or equitable remedy which Landlord may
have.
  19.           All capitalized terms used in this
Guaranty which are defined in the Lease and not otherwise defined herein shall
have the meanings ascribed to such terms in the Lease.
  20.           If any provision of this Guaranty or
the application thereof to any person or circumstance shall to any extent be
held void, unenforceable or invalid, then the remainder of this

 K-7
 

    Guaranty or
the application of such provision to persons or circumstances other than those
as to which it is held void, unenforceable or invalid shall not be affected
thereby and each provision of this Guaranty shall be valid and enforced to the
fullest extent permitted by law.
  21.           Guarantor hereby waives trial by jury
and the right thereto in any action or proceeding of any kind or nature,
arising on, under or by reason of or relating to, this Guaranty or any
agreement collateral hereto.
  22.           No right or benefit in favor of
Landlord shall be deemed waived, no obligation or liability of Guarantor
hereunder shall be deemed modified, diminished, released, compromised,
extended, discharged or otherwise affected, and no provision or term hereof may
be amended, modified or otherwise changed except by an instrument in writing,
specifying the same, duly executed by Landlord nor shall any waiver be
applicable, except in the specific instance for which it is given.
  23.           The laws of the State of New York
applicable to contracts made and to be performed wholly within the State of New
York shall govern and control the validity, interpretation, performance and
enforcement of this Guaranty.
  24.           This Guaranty shall be binding upon
Guarantor and its successors and assigns and inure to the benefit of Landlord
and its successors and assigns.
  IN WITNESS WHEREOF, Guarantor and Agent have duly executed
and hereby deliver this Guaranty as of the day and year first above written.
  	  
  	   
  	  AECOM TECHNOLOGY
  CORPORATION
  	   
  	   
  
	   
  	   
  	   
  	   
  	   
  
	   
  	   
  	   
  	   
  	   
  
	  ATTEST:
  	   
  	   
  	   
  	   
  
	   
  	   
  	   
  	   
  	   
  
	   
  	   
  	  By:
  	   
  	   
  	   
  
	   
  	   
  	  Its:
  	   
  	   
  	   
  
							

   
  The
undersigned hereby executes this Guaranty solely for the purpose of accepting
the designation in paragraph 11 above.
  	  
  	   
  	   
  	  , Agent
  	   
  
	   
  	   
  	   
  	   
  	   
  
	   
  	   
  	  By:
  	   
  	   
  	   
  
							

   

 K-8

EXHIBIT L

[FORM OF LETTER OF CREDIT]

                              ,
199    

New York, New York                      

Attention:                                         

Re:
Irrevocable Letter of Credit No.

Gentlemen:

We
hereby establish in your favor this IrrevocableLetter of Credit No.                       
(this “Letter of Credit”) in theaggregate amount of U.S. $                       and
expiring                       (the“Expiration
Date”). We hereby authorize you to draw on us byorder and for the account of                                                                     (the“Account
Party”)under the
terms and conditions set forth herein. Partial drawings are permitted under
this Letter of Credit. We are advised this Letter of Credit is issued pursuant
to the leasedated as of                       ,
1999 (the “Lease”) between
605Third Avenue
LLC (the “Landlord”)and Frederic R. Harris, Inc. (the “Tenant”). Funds under this Letter of
Credit are available upon presentation of this Letter of Credit, accompanied by
your sight draft drawn on us, referring thereon to the number of this Letter of
Credit, and a Letter from Landlord to Tenant (“Certificate”) specifying the reason for the drawing. 

Presentation
of this Letter of Credit, sight draft andcertificate must be made on a day in which we are operating inthe regular course of business (a “Business Day”)at our officesas designated below on or before the Expiration Date.

Presentation
of drafts and certificate must bepresented to our office located at [office in New York City],
or at any other office in New York, New York which may be designated by our
written notice delivered to you. Such draft(s) shall be final and conclusive
for all purposes without verification by us and shall not be subject to
refutation, denial or consent by us. All notices which we may deliver to you
shall be given at your address set forth above.

We
hereby agree to duly honor drafts drawn under and in conformity with this
Letter of Credit and accompanied by documents required by this Letter of Credit
on that Business Day,

 L-1
 

if
presentation of the aforementioned documentation occurs on or before 12:00 noon
(New York City time) of said Business Day, or the immediately following
Business Day, if presentation of the aforementioned documentation occurs after
12:00 noon (New York City time) of said Business Day.

It
is a condition of this Letter of Credit that it shall be deemed automatically
extended without amendment for one (1) year, from the Expiration Date hereof,
or any future expiration date, unless at least thirty (30) days prior to any
such expiry date, we shall notify you by registered mail, return receipt
requested or overnight courier service at the above address that we elect not
to consider this Letter of Credit renewed for any such additional period. Upon
receipt of such notice you may draw hereunder by means of presentation of this
original Letter of Credit accompanied by your sight draft for an amount not
exceeding the available amount of this Letter of Credit.

This Letter of Credit
may be transferred any number of times, but only in the amount of the full
unused balance. Transfer of this Letter of Credit is subject to our receipt of
Landlord’s instructions accompanied by the original Letter of Credit and amendment(s)
if any.

Except
as stated herein, payment of presentations made under this Letter of Credit is
not subject to any conditions or qualifications.

We
hereby irrevocably engage that presentation made in accordance with the terms
and conditions of this Letter of Credit will be duly honored.

This
Letter of Credit sets forth in full our undertaking, and such undertaking shall
not in any way be modified, amplified, amended or limited by reference to any
document or instrument referred to herein, and any such reference shall not be
deemed to incorporate by reference herein any document or instrument.

This
Letter of Credit is issued subject to the Uniform Customs and Practice for
Documentary Credits (1993 Revision), International Chamber of Commerce
Publication No. 500, and shall, as to matters not governed by said Uniform
Customs and Practice

 L-2
 

for
Documentary Credits, be governed by and construed in accordance with the laws
of the State of New York.

	
  

  	
   

  	
  Sincerely yours,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  [BANK]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 L-3

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