Document:

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                                                                    Exhibit 10.3

                          AMENDED AND RESTATED LEASE
                          --------------------------

     THIS AMENDED AND RESTATED LEASE (the "Lease") is made as of the 15th day of
December, 1997  between 35 W. Wacker Venture, L.L.C., a Delaware limited
liability company ("Landlord"), and LEO BURNETT COMPANY, INC., a Delaware
corporation ("Tenant");

                                  WITNESSETH
                                  ----------

     WHEREAS, Landlord's predecessor in interest, Harris Trust and Savings Bank,
not individually but solely as Trustee under Trust Agreement dated September 24,
1986 and known as Trust No. 43770 ("Trustee"), and Tenant entered into: (i) a
certain Lease dated as of January 22, 1987; (ii) a certain First Amendment to
Lease dated as of February 13, 1991, and (iii) a certain Second Amendment to
Lease dated as of January 8, 1993 (said Lease, as amended by the First Amendment
to Lease and Second Amendment to Lease is called the "Existing Lease"), pursuant
to which Trustee leased to Tenant and Tenant leased from Trustee certain
Premises (hereinafter defined) currently occupied by Tenant in the Land and
Building (each hereinafter defined) commonly known as 35 W. Wacker Drive,
Chicago, Illinois;

     WHEREAS, pursuant to a certain Agreement Regarding Acquisition of Limited
Liability Company Interest dated as of October 3, 1997 (the "Contribution
Agreement"), Tenant has agreed to cause Trustee to convey unto Landlord, all of
Trustee's right, title and interest in and to the Land and Building (the
"Contribution");

     WHEREAS, the Contribution Agreement provides for the termination of the
Existing Lease upon the closing of the Contribution, and the entering into by
Landlord and Tenant of this Lease pursuant to which Landlord will lease to
Tenant, and Tenant will lease from Landlord, the Premises for a term beginning
on the closing date of the Contribution and ending on the date(s) set forth
herein;

     NOW, THEREFORE, in consideration of these premises and other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

     1.   TERMINATION OF LEASE.  The Existing Lease shall terminate as of 11:59
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p.m. on December 14, 1997 (the "Existing Lease Termination Date"), which is the
day immediately preceding the Commencement Date (hereinafter defined) of this
Lease, as if such Existing Lease Termination Date were set forth in the Existing
Lease as the expiration date of the term of the Existing Lease; except that
Tenant and Landlord shall remain liable for all obligations of such party
accruing under the Existing Lease prior to such Existing Lease Termination Date.

     2.   LEASING AGREEMENT. Landlord hereby leases to Tenant, and Tenant hereby
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leases from Landlord, the premises described in Paragraph 2.A. of this Lease
(the "Premises") in the building commonly known as 35 West Wacker Drive,
Chicago, Illinois (the "Building") located on the land, legally described in
Exhibit A hereto, on the west one half of the block bounded by State Street,
Wacker Drive, Dearborn Street and Lake Street, all in the City of Chicago, Cook
County, Illinois  (together with all present and future easements and other
rights appurtenant thereto, the "Land"), subject to the covenants, terms,
provisions and conditions of this Lease.  The Building is
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comprised of a fifty (50) story office tower (the "Office Tower") and a three
(3) story retail bustle (the "Retail Space"). Tenant accepts the Premises in its
"as is" condition as of the date hereof. During the Term of this Lease, Tenant
shall have the right to use the one Building docking office (and adjoining
storage area) on lower Wacker Drive used by Tenant as of the date hereof for the
continued use of Tenant's loading dock personnel in the same manner as used by
Tenant as of the date hereof for shipping and receiving of materials. No
agreement of Landlord to alter, remodel, decorate, clean or improve the Premises
or Building (or to provide Tenant with any credit or allowance for the same),
and no representation regarding the condition of the Premises or Building, have
been made by or on behalf of Landlord or relied upon by Tenant, except as may be
expressly stated herein.

          Except as otherwise provided herein, Landlord specifically excepts and
reserves to itself the use of any roof decks, the exterior portions of the
Premises, and such areas within the Premises required for installation of
utility lines and other installations required to service other occupants of the
Building and to maintain and repair same, and no rights are conferred upon
Tenant, and Landlord specifically excepts and reserves to itself, unless
otherwise specifically provided, all rights to the land and improvements below
the lowest floor level of the Premises, to the improvements and air rights above
the Premises and to the land and improvements located outside the demising walls
of the Premises.

          A.   The "Premises" means and includes the Office Tower Premises and
the Retail Space Premises (both, as hereinafter defined). The "Office Tower
Premises" means and includes: (i) floors two through twenty-nine, inclusive, in
the Office Tower which the parties hereto acknowledge and agree contain 608,656
RSF; (ii) Suite 3401 in the Office Tower which the parties hereto acknowledge
and agree contains 25,000 RSF; and (iii) Suite 3740 in the Office Tower, which
the parties hereto acknowledge and agree contains 1,278 RSF. The "Retail Space
Premises" means and includes Suite R-9 in the Retail Space, which the parties
hereto acknowledge and agree contains 8,889 RSF.

          B.   "RSF" shall mean, as the context requires, one square foot or a
number of square feet of Rentable Area in any given space.

          C.   "Rentable Area" shall be computed by measuring to the inside
finished surface of the dominant portion (50% or more of the vertical floor-to-
ceiling dimension) of the permanent outer building wall (including windows or
glass panels; if the windows are thermal pane windows, the inside finished
surface shall be deemed to be the center line of the air space between such
thermal panes) without deduction for any columns or projections necessary to the
Building and shall include all areas within such inside finished surface other
than public stairs (stairs shall be deemed public if they constitute part of the
Building's public stair system even if used by Tenant for access between floors
of the Premises to the extent permitted by law and barred to other tenants
except in cases of emergency), interior balconies, if any, elevator shafts,
flues, stacks, pipe shafts and other major vertical penetrations of the floor.

Rentable Area shall include:

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          (1)  With respect to each single tenancy floor, toilets, air
     conditioning rooms, fan rooms, janitor closets, lobbies, elevator lobbies,
     electrical closets and telephone and other telecommunication closets within
     and serving only such floor (or only floors occupied by the same tenant);
     and

          (2)  With respect to each multiple tenancy floor, for each particular
     premises on that floor, its share of the areas described in the preceding
     clause (1), together with the particular premises' share of all public
     corridors and other public areas on such floor, as they may be adjusted
     from time to time.  The tenant spaces on a multiple tenancy floor shall
     share 100% of the Rentable Area of that full floor.  The share of each
     tenant's space shall be based upon the usable area contained in that
     tenant's space (which shall be measured to the center of partitions that
     separate such space from other tenant spaces or public areas) compared to
     the total usable area on that full floor.

          (3)  With respect to each single or multiple tenancy floor, such
     floor's proportionate share (based on such floor's Rentable Area without
     such added factor compared to the Building's Rentable Area without such
     added factor) of the public lobby area in the Building; provided, however,
     that, as of the Commencement Date, the ratio of Tenant's Rentable Area with
     such added factor to Tenant's usable area (such usable area to be measured
     on the basis of standards established by BOMA) shall not exceed 1.12 to
     1.00.

          The parties hereto acknowledge and agree that, as of the date hereof:
(i) the Rentable Area of the Building contains 1,117,978 RSF with the Office
Tower containing 1,075,876 RSF and the Retail Space containing 42,102 RSF; and
(ii) the aggregate Rentable Area of the Premises contains 643,823 RSF.  Landlord
shall not increase Tenant's Proportionate Share Taxes - Office Tower, Tenant's
Proportionate Share Taxes - Retail Space, Tenant's Proportionate Share Operating
Expenses - Office Tower or Tenant's Proportionate Share Operating Expenses -
Retail Space (all, as hereinafter defined) except for additions to the RSF of
the Premises due to expansions of the Premises by Tenant pursuant to Paragraphs
30 and 32 hereof.  If the Rentable Area of either the Premises or the Building
(or any above described  portion thereof) changes in any Calendar Year during
the Term of this Lease, or any renewal thereof, such Rentable Area shall be
recomputed as aforesaid by Architect (as hereinafter defined)  and all
applicable adjustments hereunder shall be made as of the date of each such
change.  In the event of any dispute over Rentable Areas, Tenant shall make
payments based on the Rentable Areas determined by Landlord until resolution of
such dispute at which time any necessary adjustments shall be made and any
amounts due to Landlord or Tenant as a result shall be paid within thirty (30)
days after demand together with interest on such adjusted amount at 2% over the
Prime Rate.

     3.   TERM. The term of this Lease (the "Term") shall begin on December 15,
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1997 (the "Commencement Date").  Unless sooner terminated as provided herein,
the Term shall end with the last day of the one hundred eightieth  (180th) full
calendar month subsequent to the Commencement Date (for example, December 31,
2012, if the Commencement Date were to be December 18, 1997), as such date may
be extended by the exercise of any one or more of the options conferred upon

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Tenant under this Lease (the "Termination Date"). Notwithstanding the foregoing,
the Termination Date for Suite 3401 of the Premises shall be December 31, 2004.

     4.   BASE RENT.  Tenant shall pay to Landlord or Landlord's agent at the
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office of Landlord's agent at 35 W. Wacker Drive, Suite 3860, Chicago, Illinois
60606, or at such other place as Landlord may from time to time designate in
writing, in coin or currency which, at the time of payment, is legal tender for
private or public debts in the United States of America, "Base Rent" at annual
rate which is equal to the number of RSF within the Premises (excluding,
however, the 1,278 RSF of Suite 3740, for which Base Rent shall at no time
accrue or be payable during the Term of this Lease or any Extension Term) times
$14.55, net of Operating Expenses and Taxes.  Such annual rate shall be paid in
monthly installments of one-twelfth of the then-current annual rate in advance
on or before the first day of each and every month during the Term, without any
set-off, abatement, counterclaim or deduction whatsoever, except as otherwise
provided herein.  If the Term commences other than on the first day of a month,
the Base Rent for such month shall be prorated.  The prorated Base Rent for the
portion of the month in which the Term commences shall be paid on the first day
of the Term.  The Base Rent for the Initial Space and any other space added to
the Premises pursuant to Paragraph 30 hereof, shall be increased on each
anniversary of the Commencement Date by multiplying the then applicable Base
Rent by the decimal equivalent of 2.5% (i.e. .025).  A schedule of Base Rent for
the Premises for the initial Term of this Lease is attached hereto as Exhibit B.

     5.   ADDITIONAL RENT.  In addition to paying the Base Rent specified in
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Paragraph 4 hereof, Tenant shall pay as "Additional Rent" for the Term an amount
equal to "Tenant's Expense Participation Amount" determined from time to time
during the Term pursuant to this Paragraph 5. The Base Rent and the Additional
Rent are sometimes herein collectively referred to as the "Rent." Tenant's
obligation to pay rent is an independent covenant and is a separate obligation,
except as otherwise set forth herein.  Except as otherwise provided in this
Paragraph 5, all amounts due under this Paragraph 5 as Additional Rent shall be
payable for the same periods and to the same party and at the same place as the
Base Rent.  Without limitation on other obligations of Tenant which shall
survive the expiration of the Term, the obligations of Tenant to pay the
Additional Rent provided for in this Paragraph 5 with respect to periods during
the Term shall survive the expiration of the Term.  For any partial Calendar
Year, Tenant shall be obligated to pay only a pro rata share of the Additional
Rent, based on the number of the days of the Term falling within such Calendar
Year.

          A.   Definitions.  As used in this Paragraph 5, the terms:
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          (1)  "Calendar Year" shall mean each calendar year in which any part
     of the Term falls.

          (2)  "Tenant's Proportionate Share" at any time during the Term shall
     mean the percentage calculated by dividing the number of RSF contained in
     the Premises by the number of RSF contained in the Building.

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          (3)  "Tenant's Proportionate Share Taxes - Office Tower" at any time
     during the Term shall mean the percentage calculated by dividing the number
     of RSF contained in the Office Tower Premises by the number of RSF
     contained in the Office Tower.

          (4)  "Tenant's Proportionate Share Taxes - Retail Space" at any time
     during the Term shall mean the percentage calculated by dividing the number
     of RSF contained in the Retail Space Premises by the number of RSF
     contained in the Retail Space.

          (5)  "Tenant's Proportionate Share Operating Expenses - Office Tower"
     at any time during the Term shall mean the percentage calculated by
     dividing the number of RSF contained in the Office Tower Premises by
     1,065,926 RSF.

          (6)  "Tenant's Proportionate Share Operating Expenses - Retail Space"
     at any time during the Term shall mean the percentage calculated by
     dividing the number of RSF contained in the Retail Space Premises by 26,344
     RSF.

          (7)  "Taxes" shall mean in any Calendar Year all real estate taxes and
     assessments, special or otherwise, sewer rents, rates, charges, water taxes
     or transit taxes, upon or with respect to the Land and/or Building and ad
     valorem taxes for any personal property used in connection therewith, which
     are paid or payable during such Calendar Year (but shall not include any
     such taxes or assessments which are a lien but are not payable during such
     Calendar Year).  Should the State of Illinois, or any political subdivision
     thereof, or any other governmental authority having jurisdiction over the
     Land and/or the Building, (a) impose or increase a tax, assessment, charge
     or fee which Landlord shall be required to pay, by way of substitution in
     whole or in part for such real estate taxes and ad valorem personal
     property taxes or an increase therein, or (b) impose or increase an income
     or franchise tax or a tax on rents in substitution in whole or in part for
     a tax levied against the Land and/or the Building and/or the personal
     property used in connection with the Land or Building, or an increase
     therein, all such taxes, assessments, fees or charges (hereinafter defined
     as "in lieu of taxes") shall, to the extent they do constitute such a
     substitution, be deemed to constitute Taxes hereunder if paid or payable
     during a Calendar Year.  Taxes shall also include, in the year paid, all
     fees and costs reasonably incurred by Landlord in seeking to obtain a
     reduction of, or a limit on the increase in, any Taxes (and Landlord shall
     seek to obtain such a reduction of or a limit on the increase in Taxes each
     and every year), but only to the extent of any reduction or limitation so
     obtained.  Except as hereinafter provided with regard to "in lieu of
     taxes," Taxes shall not include any inheritance, estate, succession,
     transfer, gift, franchise, net income or capital stock tax, or any
     penalties for the late payment by Landlord of any Taxes.

          "In lieu of taxes" shall also mean leasehold taxes imposed upon the
     Landlord in connection with the leasing and operation of the Building or
     the Land, except to the extent such taxes constitute income or other taxes
     imposed upon or measured by the general net income or profits of the
     Landlord.

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          In the event that Landlord is required by federal, state or local
     statute or ordinance to collect taxes imposed upon Tenant in connection
     with this Lease, Tenant shall cooperate with Landlord in the collection and
     payment of same, shall execute and deliver such forms and other documents
     as shall be reasonably required to enable Landlord to collect and pay such
     taxes and shall remit to Landlord all required payments, including interest
     and penalties prior to the date said taxes are due and payable.  In the
     event that such taxes may be paid directly by Tenant, Tenant shall
     cooperate with Landlord in making any requests or applications to enable
     Tenant, rather than Landlord, to pay such tax, and Tenant shall pay such
     tax directly to the appropriate governmental authorities after the required
     approvals are obtained.

          (8)  "Operating Expenses" shall mean all expenses, costs and
     disbursements (other than Taxes) of every kind and nature paid or accrued
     (with any appropriate accounting adjustments if the manner of accounting
     for any item is changed during the Term) by Landlord in any Calendar Year
     in connection with the management, operation, leasing and repair of the
     Land and Building and personal property used solely in connection therewith
     (specifically including the provision of any of the future services
     described in Paragraph 7A(9)), except the following:

               (a)  Costs of alterations of any tenant's premises, including,
          but not limited to, preparing tenantable space for a tenant's initial
          occupancy or lease renewal or extension;

               (b)  Principal or interest payments on loans secured by mortgages
          or trust deeds on the Building and/or the Land (including any
          refinancings of the Building and/or the Land), or lease rentals paid
          or payable on any ground or underlying lease;

               (c)  Costs of capital improvements, except that Operating
          Expenses shall include: (i) the cost of any capital improvements
          completed after the Commencement Date which are not a part of the
          initial construction of the Building and which are reasonably
          estimated by Landlord to reduce Operating Expenses, provided (v) such
          cost must be evenly amortized by Landlord over the useful life of the
          capital improvement, with interest on the unamortized amount at the
          prime or base rate of interest announced from time to time by The
          First National Bank of Chicago, or another major national bank
          selected by Landlord if The First National Bank of Chicago shall not
          at any time be in existence or be announcing a prime or base rate
          ("Prime Rate"), (w) such amortized costs (including interest as
          aforesaid) shall only be included in Operating Expenses under this
          Lease for that portion of the useful life of the capital improvement
          which falls within the Term, (x) that portion of the annual amortized
          costs (including interest as aforesaid) to be included in Operating
          Expenses shall be the lesser of such annual costs or the projected
          annual reduction in Operating Expenses for that portion of the useful
          life of the capital improvement which falls within the Term, as
          reasonably estimated by Landlord and certified by a qualified engineer
          in detail by expense category prior to making such

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          capital improvement, (y) all elements of such projection shall be
          completed in accordance with generally accepted accounting principles
          and practices in effect at the time the capital improvement is
          proposed to be made; and (z) a copy of such projection of the
          underlying calculations shall be furnished to Tenant prior to
          Landlord's including the cost of any such capital improvement in
          Operating Expenses; and (ii) provided that conditions (i)(v) and
          (i)(w) above are satisfied, the cost of any capital improvement made
          by Landlord to keep the Land or Building in compliance with all
          governmental rules and regulations enacted after the Commencement
          Date;

               (d)  All expenses for which Landlord has received any
          reimbursement to the extent of such reimbursement, other than indirect
          reimbursement by the payment by any tenant of base rent or its share
          of Operating Expenses;

               (e)  Attorneys' fees, costs and disbursements and other expenses
          incurred in connection with tenant leases, including, without
          limitation, negotiations with prospective tenants or disputes with any
          tenant but excluding any expenses incurred in the performance of any
          of Landlord's obligations under such tenant leases which are
          reimbursed by tenants' payment of Operating Expenses;

               (f)  Expenses for repairs or other work occasioned by a casualty,
          except that Operating Expenses shall include the deductible amount
          permitted in Paragraph 11.C.;

               (g)  Depreciation;

               (h)  Real estate brokers' commissions or compensation and other
          expenses (including, without limitation, architectural, space planning
          or engineering services) incurred in leasing or procuring tenants;

               (i)  The cost of any electric current furnished for lighting and
          equipment (other than for the operation of fan rooms, telephone
          closets and other elements of the Building's shared systems) located
          in the Premises or in premises occupied by any other tenant in the
          Building;

               (j)  The cost of correcting defects in the construction of the
          Building or in the Building equipment provided that this shall not
          exclude the cost of normal repair, maintenance and replacement
          expected with the construction materials and equipment installed in
          the Building in light of their specifications;

               (k)  The cost of any repair made by Landlord pursuant to or as a
          result of condemnation;

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               (l)  The cost of installing, operating and maintaining any
          specialty facility, such as an observatory, broadcasting facilities,
          luncheon club, athletic or recreational club, cafeteria or dining
          facility;

               (m)  The cost of any repairs, alterations, additions, charges,
          replacements and other items not specifically referred to in this
          Paragraph 5 and which, under generally accepted accounting principles,
          are properly classified as capital expenditures;

               (n)  Any management or other fees and expenses paid to an agent
          which is related to Landlord or its beneficiary to the extent such
          fees are in excess of the customary amounts which would be paid in the
          absence of such relationship;

               (o)  Executive salaries or fringe benefits of personnel above the
          grade of Building Manager;

               (p)  Expenses incurred in connection with services or other
          benefits of a type which are not available generally to all office
          tenants of the Building;

               (q)  Any penalty charges incurred by Landlord due to the
          violation of any law, order or regulation of any authority;

               (r)  Any compensation paid to clerks, attendants or other persons
          in commercial concessions operated by Landlord;

               (s)  Advertising and promotional expenditures;

               (t)  Costs for sculptures, paintings and other objects of art
          located within the Building, except only for the costs of maintaining
          such objects in the public areas of the Building;

               (u)  Expenses incurred by Landlord, if any, in connection with
          the operation, cleaning, repair, safety, management, security,
          maintenance or other services of any kind provided to the portions of
          the Building which are leased for retail purposes, if retail tenants
          do not participate in paying such costs and expenses as a separate
          component of their rent. If the foregoing is the case, then the
          calculation of RSF in the Building shall exclude the retail space. If
          they do participate in paying for such costs and expenses, then only
          that portion of such costs and expenses that reflects a higher cost
          and expense due to greater usage by retail tenants shall be excluded
          from Operating Expenses;

               (v)  Expenses incurred by Landlord, if any, in connection with
          the operation of the parking garage in the Building;

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               (w)  Any management fee in excess of 1.5% of the annual Gross
          Revenue (as hereinafter defined) of the Building;

               (x)  Costs of relocating tenants of the Building;

               (y)  Taxes;

               (z)  Interest or penalties for late payment for fuel, gas steam,
          electricity, water, sewer or other utilities; and

               (aa) Costs incurred in connection with a transfer or disposal of
          all or any part of the Building or Land or any interest therein or in
          Landlord or any entity comprising Landlord.

               (bb) Expenses incurred by Landlord in connection with night
          cleaning of the Retail Space, provided, however, that Tenant shall pay
          Landlord directly (as opposed to as an Operating Expense pass-thru)
          for Landlord's actual costs incurred in connection with the night
          cleaning of the Retail Space Premises.

          (9)  "Tenant's Expense Participation Amount" with respect to each
     Calendar Year, shall equal  the sum of:  (i) Tenant's Proportionate Share
     Taxes - Office Tower of the Taxes for the Office Tower for such Calendar
     Year,  (ii) Tenant's Proportionate Share Taxes -Retail Space of the Taxes
     for the Retail Space for such Calendar Year, (iii) Tenant's Proportionate
     Share Operating Expenses - Office Tower of Operating Expenses for the
     Office Tower for such Calendar Year, and (iv) Tenant's Proportionate Share
     Operating Expenses - Retail Space of Operating Expenses for the Retail
     Space for such Calendar Year, as such Proportionate Shares may be adjusted
     from time to time during such Calendar Year. Notwithstanding the foregoing,
     prior to calculating Tenant's Proportionate Share Operating Expenses -
     Office Tower for each Calendar Year, the total amount of Operating Expenses
     for the Office Tower for each Calendar Year shall be reduced by $50,000.00.

          (10) "Gross Revenue" as used herein shall mean the aggregate of all
     rents, income and receipts of every kind and description actually received
     by or for the account of Landlord in connection with or arising from the
     use, occupancy or operation of the Building, including, without limitation,
     (a) base or fixed rent, percentage and other amounts payable as rent, other
     charges, fees and payments received from tenants including, without
     limitation, operating expenses and real estate taxes payable by any tenant
     pursuant to any leases; and (b) proceeds of business interruption and rent
     loss insurance to the extent received by Landlord in lieu of the receipts
     described in (i) above; provided, however, that Gross Revenues shall not
     include: (i) any security deposits received until applied to rent; (ii) any
     income amount received which is considered an extraordinary financial item,
     or an amount not received in the ordinary course of business under any
     lease; (iii) any loan repayments by tenants for above standard tenant
     improvements (other than loan repayments, including principal and interest,
     made by Winston & Strawn pursuant to its lease for space in the

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     Building); (iv) any net income collected in connection with the provision
     of any extra services by Landlord to a tenant; and (v) interest or other
     investment income.

          (11) If the Building is not 95% or more occupied during all or any
     portion of a Calendar Year then Landlord may elect to make an appropriate
     adjustment of the Operating Expenses that vary according to the occupancy
     level of the Building for such Calendar Year to determine the amount of
     such Operating Expenses that would have been paid or incurred had the
     Building been 95% occupied and the amount so determined shall be deemed to
     have been the amount of such Operating Expenses for such Calendar Year.

          B.   Payment of Additional Rent.  Landlord shall furnish Tenant, at
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least thirty (30) days prior to the commencement of each Calendar Year and from
time to time (but not more than twice) during each such Calendar Year, written
statements setting forth Landlord's then-current reasonable estimate of Tenant's
Expense Participation Amount for such Calendar Year. Tenant shall pay to
Landlord as Additional Rent on the first day of each month during each Calendar
Year, together with the payment of Base Rent, if any, an amount equal to one-
twelfth (1/12th) of Landlord's then-current reasonable estimate of Tenant's
Proportionate Share Operating Expenses -Office Tower of Operating Expenses for
the Office Tower for such Calendar Year and one-twelfth (1/12th) of Landlord's
then-current reasonable estimate of Tenant's Proportionate Share Operating
Expenses - Retail Space of Operating Expenses for the Retail Space for such
Calendar Year, plus any amounts that would have been paid for months prior to
the current month if Landlord's current estimate had been in effect during those
months. Tenant shall pay to Landlord not later than fifteen (15) days prior to
the date on which Taxes are required to be paid by Landlord, Tenant's
Proportionate Share Taxes - Office Tower of Taxes payable for the Office Tower
and Tenant's Proportionate Share Taxes - Retail Space of Taxes payable for the
Retail Space for each Calendar Year. Landlord shall provide Tenant with a copy
of the most recent Tax bills for the Office Tower and Retail Space and a
statement indicating Tenant's Proportionate Share Taxes - Office Tower of Taxes
for the Office Tower and Tenant's Proportionate Share Taxes - Retail Space of
Taxes for the Retail Space at least forty (40) days prior to the date such Taxes
are due. In addition to the foregoing, for the first twelve (12) months of the
Term, on the first day of each such month, Tenant shall pay to Landlord an
amount equal to the sum of (i) one-twenty fourth (1/24th) of Tenant's
Proportionate Share Taxes - Office Tower of Taxes for the Office Tower which
were paid for Calendar Year 1996 and (ii) one-twenty fourth (1/24th) of Tenant's
Proportionate Share Taxes -Retail Space of Taxes for the Retail Space which were
paid for Calendar Year 1996 (said sum, the "Tax Escrow"). Landlord shall place
the Tax Escrow in a separate account, invest such payments in reasonable and
liquid securities at the direction of Tenant and at Tenant's expense. Following
the final payment of Taxes payable for the Calendar Year 1997 and each
subsequent Calendar Year, Landlord shall notify Tenant of any increases in Taxes
from the prior Calendar Year and shall apply for Tenant's benefit any interest
earned on the amount held in the Tax Escrow during the prior Calendar Year, and
shall remit any excess interest to Tenant, or request Tenant to fund any
shortfall into the Tax Escrow, so that at all times the Tax Escrow shall contain
at lease one half of the amount of Tenant's Proportionate Share Taxes - Office
Tower of Taxes for the Office Tower and Tenant's Proportionate Share Taxes -
Retail Space of Taxes for the Retail Space paid for the then most recent
Calendar Year. Tenant shall deposit into the Tax Escrow any such shortfall
amount within thirty

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(30) days of Landlord's request. If Tenant fails to pay to Landlord Tenant's
Proportionate Share Taxes - Office Tower of Taxes for the Office Tower and
Tenant's Proportionate Share Taxes - Retail Space of Taxes for the Retail Space
for the Calendar Year when due as provided herein, Landlord may apply the Tax
Escrow to the amount of Taxes owed by Tenant. If any portion of the Tax Escrow
is applied to the payment of Taxes, Tenant shall, within thirty (30) days after
the written request of Landlord, pay to Landlord an amount sufficient to
replenish the Tax Escrow to its original level. On the Termination Date, Tenant
shall pay into the Tax Escrow an amount necessary to increase the Tax Escrow to
the amount of Tenant's Proportionate Share Taxes - Office Tower of Taxes for the
Office Tower and Tenant's Proportionate Share Taxes - Retail Space of Taxes for
the Retail Space for Taxes which have accrued in the Calendar Year in which the
Termination Date occurs through the Termination Date. Landlord shall use the Tax
Escrow for the payment of Tenant's share of Taxes for the final Calendar Year of
the Term and shall pay any excess remaining in the Tax Escrow (and any interest
earned thereon) to Tenant within thirty (30) days. If Tenant's share of Taxes
for the final Calendar Year of the Term exceeds the amount held in the Tax
Escrow, Tenant shall, within thirty (30) days after the written request of
Landlord, pay such excess to Landlord. Notwithstanding anything to the contrary
contained herein, Tenant shall pay Tenant's Proportionate Share Taxes - Office
Tower of 1997 Taxes for the Office Tower and Tenant's Proportionate Share
Taxes -Retail Space of 1997 Taxes for the Retail Space for the entire Calendar
Year 1997, regardless of when the Commencement Date of this Lease actually
occurs. Tenant also agrees that it shall remain responsible for Tenant's
Proportionate Share Taxes - Office Tower and Tenant's Proportionate Share
Taxes -Retail Space for any Contraction Space with respect to which Tenant has
exercised its option under Section 31 for the Calendar Year in which such
Contraction Space is vacated by Tenant through the applicable Contraction Date,
although payable in the subsequent Calendar Year.

          Landlord agrees to keep true and accurate records of all Operating
Expenses.  Prior to May 1 of each Calendar Year, Landlord shall submit to Tenant
a detailed statement certified by a certified public accountant (the "Operating
Statement") setting forth (A) the actual amount of Operating Expenses and Taxes
for the previous Calendar Year, (B) the amount of Tenant's Expense Participation
Amount on account of such previous Calendar Year and (C) the payments made by
Tenant on account thereof.  If the installments made on account of such previous
Calendar Year exceed Tenant's Expense Participation Amount due on account of
such Calendar Year, as shown on the Operating Statement, such excess shall be
credited by Landlord against the next succeeding installment(s) of Tenant's
Expense Participation Amount; provided if Tenant is not in default under this
Lease, Landlord shall at Tenant's request refund such excess to Tenant within
thirty (30) days of such request.  If, however, said installment(s) are less
than Tenant's Expense Participant Amount due on account of such Calendar Year,
as shown on the Operating Statement, then Tenant agrees to pay to Landlord the
amount necessary to make up any deficiency within thirty (30) days after the
delivery of the Operating Statement to Tenant.

          C.   Miscellaneous re Additional Rent.  If the date the Term commences
               --------------------------------
is not the first day of a Calendar Year, or if the date of expiration or
termination of this Lease is not the last day of a Calendar Year, the Tenant's
Expense Participation Amount shall be prorated based upon the number of days of
the applicable partial Calendar Year within the Term.

                                     -11-
<PAGE>

          Every Operating Statement given by Landlord pursuant to Paragraph 5.B.
shall be conclusive and binding upon Tenant unless (i) Tenant shall notify
Landlord that it disputes the correctness of the then current Operating
Statement or Operating Statements from the previous two (2) years, specifying
the particular respects in which the Operating Statement is claimed to be
incorrect, and (ii) if such dispute shall not have been settled by agreement, it
shall be settled by submission of such dispute to a national public accounting
firm acceptable to Landlord and Tenant, at the expense of Tenant, except as
hereinafter provided, for a final and binding determination. Pending the
determination of such dispute, Tenant shall within thirty (30) days after
receipt of such Operating Statement, pay any deficiency in Tenant's Expense
Participation Amount payment if due in accordance with the Operating Statement,
and such payment shall be without prejudice to Tenant's position.  If the
dispute shall be determined in Tenant's favor, Landlord shall, on demand, pay
Tenant the amount of Tenant's overpayment of Tenant's Expense Participation
Amount, if any, resulting from compliance with the Operating Statement.  If the
discrepancy was greater than two percent (2%) of the correct Operating
Statement, Landlord shall pay to Tenant interest on such overpayment at the rate
of two percent (2%) per annum over the Prime Rate.  Landlord agrees to grant
Tenant reasonable access to Landlord's books and records, during normal business
hours, at Landlord's office, for the purpose of verifying Operating Expenses
incurred by Landlord, and to make copies of any and all bills and vouchers
relating thereto, subject to reimbursement by Tenant for the cost of such
copies.

          In the event that a review of Landlord's books and records pursuant to
this Paragraph 5 reveals that Landlord has overstated its Operating Expenses for
the applicable Calendar Year by 3% or more of the actual Operating Expenses
incurred for such Calendar Year, Landlord shall also reimburse Tenant for the
reasonable expenses incurred by Tenant in conducting  such review of Landlord's
books and records and for the amounts paid to the public accounting firm.  In
the event that there is an error of less than 3% in Landlord's statement of the
Operating Expenses, then Tenant shall pay the cost of the public accounting
firm.

          Tenant shall pay, in addition to Tenant's Expense Participation
Amount, all actual and reasonable expenses, costs and disbursements incurred by
Landlord and not included in Operating Expenses and which solely are
attributable to the operation and maintenance of equipment installed in the
Premises at Tenant's request for the exclusive use of Tenant, and which is not
generally available to other tenants of the Building.

     6.   USE OF THE PREMISES.  The Premises may be used and occupied for any
          -------------------
lawful purpose consistent with the operation of a first-class office building in
Chicago, Illinois, provided that any such use and occupancy complies with all
applicable building and zoning laws, codes and ordinances and such use is not
dangerous to person or property, does not invalidate or increase Landlord's
insurance premiums, does not create a nuisance or unreasonably disturb any other
tenant of the Building and does not injure the reputation of the Building.
Tenant may, if Tenant so elects, install and operate vending machines for the
exclusive use of Tenant's employees and invitees to dispense hot and cold
beverages, ice cream, candy, food and cigarettes, provided that such machines
shall be maintained in a neat and sanitary condition and shall comply with all
applicable laws and

                                     -12-
<PAGE>

ordinances. In addition, Tenant may, if Tenant so elects, install, equip and
operate one or more cafeterias or dining rooms in the Premises and serve
alcoholic beverages therein for the exclusive use of Tenant's employees and
invitees, subject to compliance with all applicable codes and ordinances and
provided (a) Tenant has delivered to Landlord certificates evidencing
satisfactory insurance against any liability of Landlord arising from such
serving of alcoholic beverages in the Premises; and (b) Tenant has made all
appropriate utility modifications at its expense and subject to Landlord's
reasonable approval and implemented appropriate pest control measures.

          Subject to Landlord's reasonable approval, Tenant shall have the right
from time to time to the use of the Building lobby for Tenant sponsored
presentations (a "Presentation") for up to a total of ten (10) days during each
Calendar Year.  Tenant shall provide Landlord with at least fourteen (14) days
prior notice of a Presentation (the "Presentation Notice").  Landlord shall be
deemed to have approved a Presentation if Landlord does not object in writing to
Tenant within seven (7) days after receipt of a Presentation Notice.

     7.   SERVICES.
          --------

          A.   List of Services.  Landlord shall provide the following services
               ----------------
at all times during the Term, subject to the following:

          (1)  Heating, ventilating and air-conditioning on all business days in
     accordance with the performance condition standards set forth in Exhibit C
     hereto.  The term "business day" means Monday through Friday during the
     period from 8 a.m. to 6 p.m. and on Saturday during  the period from 8 a.m.
     to 1 p.m., legal holidays excluded.  The term "legal holiday" means New
     Year's Day, Memorial Day, the 4th of July, Labor Day, Thanksgiving Day and
     Christmas Day.  If Tenant shall require heating, ventilating or air
     conditioning service at any other time ("after-hours"), Landlord shall
     furnish such after-hours service upon advance notice from Tenant given
     prior to 5:00 p.m. on any business day (noon on Saturdays) and on the
     previous business day with respect to after-hours service on Sunday or any
     legal holiday. Tenant shall pay for such after-hours service at Landlord's
     reasonable actual cost (including overhead but not profit) of furnishing
     same.  In the event the after-hours service is requested and shared by
     other tenants on the same floor, Tenant's share of such costs shall be
     appropriately reduced.

          Use of the Premises, or any part thereof, in a manner exceeding the
     performance conditions (including occupancy and connected electrical load)
     specified in Exhibit C or rearrangement of partitioning which  interferes
     with normal operation of the heating, ventilation and air-conditioning in
     the Premises, may require change in the heating, ventilation and air-
     conditioning system servicing the Premises.  Such changes, so occasioned,
     shall be made if feasible by Landlord at Tenant's expense upon Landlord's
     or Tenant's request therefor.

          (2)  Subject to the Building performance standards specified in
     Exhibit C, sufficient electrical capacity to operate typewriters,
     calculating machines, photocopying

                                     -13-
<PAGE>

     machines, data processing equipment, personal computers, laptop computers,
     and other equipment and accessories customarily used by means of standard
     floor, ceiling or wall outlets within the Premises. If any electrical
     equipment requires air-conditioning in excess of Building standard, the
     same shall be installed at Tenant's expense and Tenant shall pay all
     operating costs relating thereto.

          If Tenant's requirements for electricity are in excess of those set
     forth in this clause (2) the Landlord reserves the right to require Tenant
     to pay the cost of installation, operation and maintenance of the conduit,
     wiring and other equipment necessary to supply electricity for such excess
     use requirements at the Tenant's expense by arrangement with Commonwealth
     Edison Company or another approved local utility.

          Tenant shall bear the responsibility of replacement of all lamps and
     tubes for lighting fixtures, which Tenant may purchase from its own
     suppliers and install by its own maintenance persons.  The brand and type
     of such lamps and tubes shall be reasonably approved by Landlord, such
     approval to be based solely upon Landlord's desire to maintain a
     substantially uniform color and intensity of the interior lighting in the
     Building.

          (3)  Adequate hot and cold City water from the regular Building
     outlets for drinking, lavatory and toilet purposes. The water pressure must
     be a minimum of 35 to 40 pounds per square inch and the hot water
     temperature must be 100. Tenant shall pay the cost of installation,
     maintenance and replacement of any additional water requirements and
     equipment for any kitchen purposes in connection with the permitted dining
     rooms or cafeterias.

          (4)  Janitorial services as specified in Exhibit D attached hereto and
     identified as "Janitorial Services."  Landlord will supply all necessary
     janitorial products in its performance of Janitorial Services.  Subject to
     Landlord's reasonable approval and for so long as it does not cause any
     problems or disputes with any unions representing other workers in the
     Building, Tenant may contract with its own janitor to provide supplementary
     janitorial services to the Premises.  Landlord shall have no liability
     whatsoever for any losses or damages resulting from the acts or omissions
     of Tenant's own janitor and Tenant hereby indemnifies and holds Landlord
     harmless from any such losses or damages.  In contracting with such
     janitor, Tenant will not knowingly take any action which will directly
     result in picketing of the Building or the concerted withholding of
     services by any employees of Landlord or Landlord's beneficiary and should
     any such action occur Tenant will take any reasonable steps available to
     bring such action to an end.

          (5)  Window washing for the inside and outside of windows in the
     Building's perimeter walls as may be situated in the Premises at intervals
     to be determined by Landlord, but not less than four times per year.

          (6)  Adequate automatic passenger elevator service available 24 hours
     a day, seven days a week.

                                     -14-
<PAGE>

          (7)  Freight elevator services subject to reasonable scheduling by
     Landlord and appropriate charges for night and weekend use.

          (8)  Building Directory for Tenant with one line for Tenant for every
     400 RSF in the Premises from time to time but not to exceed 1,500 lines.
     Landlord's design and placement of all Building Directories shall be
     subject to Tenant's reasonable approval.

          (9)  Landlord agrees to furnish such other services as are customarily
     furnished by landlords of other first-class office buildings in the City of
     Chicago, to the extent such service can be provided without additional
     capital improvements and provided the cost of such services can be included
     in the Operating Expenses.  Notwithstanding the foregoing, Landlord shall
     not decrease the level of quality of services provided to Tenant as of the
     date hereof.

          B.   Billing for Electricity.  Tenant shall pay for the use of all
               ------------------------
electrical service to the Premises.  Provided that Landlord can make
satisfactory arrangements with the utility company supplying electricity to the
Premises for separate metering and billing, Tenant shall be billed directly by
such utility company.  In the event that for any reason the Premises are
metered, but Tenant cannot be billed directly, Landlord shall forward each bill
received by it with respect to the Premises to Tenant and Tenant shall pay it
promptly in accordance with its terms.

          Landlord has advised Tenant that presently Commonwealth Edison (the
"Electric Service Provider") provides electricity service to the Building.
Notwithstanding the foregoing, if permitted by law, Landlord shall have the
right at any time and from time to time during the Term of this Lease to either
contract for electricity service from a different company or companies providing
electricity service (each such company, an "Alternate Service Provider") or
continue to contract for electricity service from the Electric Service Provider;
provided, however, that all Alternate Service Providers selected by Landlord
shall provide electricity service to the Building and Premises at a level which
is identical or better than the electricity service provided by the Electric
Service Provider and such new electricity service will not increase Tenant's
electricity costs.

          C.   Interruption of Services.  Unless repairs, renewals or
               ------------------------
improvements for services can be made during business hours without material
interference with Tenant's business operations, Landlord shall make such
repairs, alterations, or replacements during nonbusiness hours except in the
event of an emergency.  Landlord further agrees, where practical, to notify
Tenant in advance prior to the cessation of such service, and to estimate the
duration of such cessation.  Tenant also agrees to notify Landlord of any
interruption of services that Tenant discovers.

          If the Landlord ceases to furnish any of the services referred to in
this Paragraph 7 and if (i) as a result of such cessation, the Premises, or any
floor within the Premises, is rendered untenantable (meaning Tenant's inability
to use any or all of the floor(s) (or any part thereof) within the Premises in
the normal course of its business) and (ii) such cessation continues for a
period of three (3) business days, then, the Rent payable hereunder shall be
equitably abated based upon the

                                     -15-
<PAGE>

percentage of the space in the Premises so rendered untenantable and not then
being used by Tenant in the ordinary course of its business operations. The
foregoing abatement shall become effective as of the first business day
following the day the affected floor(s) become(s) untenantable. Landlord agrees
to use all commercially reasonable efforts to cure the cessation of service(s)
as promptly as reasonably practicable. Tenant agrees to cooperate with Landlord
in abiding by all reasonable rules and regulations that Landlord prescribes for
proper functioning of utilities and Building services. Tenant agrees not to
tamper or adjust any utilities or associated equipment unless authorized in
writing by Landlord.

          D.   Charges for Services.  Except as otherwise provided in this
               --------------------
Paragraph 7 or in Paragraph 5, all services shall be provided by Landlord and
the cost of providing such services shall be included in Operating Expenses.
Charges for any service for which Tenant is required to pay directly, rather
than by Tenant's  Expense Participation Amount, shall be due and payable at the
same time as the installment of Rent with which they are billed, or if billed
separately, shall be due and payable within thirty (30) days after such billing.

          E.   Energy Conservation.  Notwithstanding anything to the contrary in
               -------------------
this Paragraph 7 or elsewhere in this Lease, if the federal government, the
State of Illinois or the City of Chicago requires that temperature conditions be
maintained other than as set forth in Exhibit C, then Landlord shall be deemed
to be performing its obligation to furnish heating, ventilating and cooling
pursuant to the requirements of this Lease if it furnishes such heating,
ventilating and cooling as so required.  Landlord shall give Tenant notice of
such requirements as soon as reasonably possible after Landlord's receipt of
notice of such requirements.

     8.   REPAIRS.  Except to the extent that Landlord has the obligation to
          -------
rebuild pursuant to Paragraph 12 hereof, Tenant will, subject to Paragraph
11.A., at Tenant's own expense, perform any maintenance, repairs and
replacements of the Premises that are (i) caused by the neglect or misuse of
Tenant, its employees, contractors, agents, invitees or licensees, or (ii)
required to keep the floors, ceilings, walls, partitions, and other interior
portions of the Premises which are not a part of the Building's shared systems
in good repair and tenantable condition, reasonable wear and tear excepted.  If
the Tenant does not commence any such required maintenance, repair or
replacement within ten (10) days of the request of Landlord to do so, or if
after such commencement, Tenant does not thereafter diligently pursue same to
completion, Landlord may, but need not, make such repairs and replacements, and
Tenant shall pay Landlord the cost thereof.

          Landlord, as an Operating Expense (except as otherwise provided in
Paragraph 5), shall keep and maintain the Building and its fixtures,
appurtenances, systems and facilities serving the Premises, in good working
order, condition and repair and shall make all repairs, structural and
otherwise, interior and exterior, as and when needed in or about the Building
and the Premises, except for those repairs for which Tenant is responsible
pursuant to any other provisions of this Lease.  Without limiting the generality
of the foregoing, Landlord shall repair and maintain, and if necessary, replace
(i) building structure, foundation, roof, gutters, exterior walls, window
coverings, windows, and all other exterior and structural parts of the Building,
(ii) halls, stairways and entry ways, elevators and common passageways and all
other common areas of the Building, (iii) elevator

                                     -16-
<PAGE>

lobbies and restrooms on each floor of the Premises (provided Tenant has not
hired its own janitorial contractor to perform such repair and maintenance), and
(iv) all elements of the plumbing system, the sprinkler system, the light
fixtures and electrical distribution system, the heating, ventilating and air
conditioning system and any other of the Building's shared systems located
within the Premises. Nothing contained in this Paragraph 8 shall require
Landlord to paint or decorate the Premises. If the Landlord does not commence
any required maintenance, repair or replacement within thirty (30) days of the
request of Tenant to do so (or in cases of emergency within twenty-four (24)
hours after notice), or if after such commencement, Landlord does not thereafter
diligently pursue same to completion, Tenant may, but need not, make such
repairs and replacements, and Landlord shall pay Tenant the cost thereof within
ten (10) days after notice given from Tenant to Landlord specifying such costs.

          Except as expressly otherwise provided in this Lease, Landlord shall
have no liability to Tenant by reason of any inconvenience, annoyance,
interruption or injury to business arising from Landlord's making any repairs or
changes which Landlord is required or permitted by this Lease, or required by
law, to make in or to any portion of the Building or the Premises, or in or to
the fixtures, equipment or appurtenances of the Building or the Premises,
provided that Landlord shall use due diligence with respect thereto.  In case of
repairs or changes which are made within the Premises, unless such repairs,
renewals or improvements can be made during business hours without material
interference with Tenant's business operations, Landlord shall make such
repairs, alterations, or replacements during non-business hours, except in the
event of an emergency.

     9.   ADDITIONS AND ALTERATIONS.
          -------------------------

          A.   (i)  Tenant may, at its discretion and its expense, carpet and
decorate (i.e., paint, carpet, cover walls or ceilings, change furnishings,
change or move non-demising walls provided same does not affect any building
systems) and, if and as permitted by law, install an alarm and public address
system (provided such public address system does not create excessive noise
affecting other tenants and it is in compliance with all applicable codes) in
such portion of the "public stairways" as run between the floors comprising the
Premises and a door or other device barring access to such floors from lower
floors except in emergency.  Tenant may from time to time during the Term, at
its expense, make other alterations, additions, installations, substitutions,
and improvements (herein collectively called "changes") in and to the Premises,
excluding Structural Changes (as hereinafter defined), subject to the provisions
of this Paragraph 9.  If any changes performed by Tenant pursuant to this
Paragraph 9.A(i) require that a City of Chicago Building Permit be issued and
that drawings of such changes must  be submitted to the City of Chicago for the
issuance of the Building Permit, Tenant will provide Landlord with notice of
such changes and supply Landlord with a copy of the drawings for such changes
and the Building Permit. Notwithstanding anything to the contrary contained
herein, Landlord's approval is not required for any changes pursuant to this
Paragraph 9A(i).

          (ii) If the change involves any work which: (1) involves a
penetration or other alteration of the structural components of the Building,
including, but not limited to, floor slabs (other than electrical outlets), load
bearing walls or columns or demising walls, or (2) alters a

                                     -17-
<PAGE>

primary Building system which serves other premises within the Building
(collectively, "Structural Changes"), then Tenant shall, at least thirty (30)
days prior to commencing any Structural Changes, notify Landlord of the nature
and extent of such change and shall also submit reasonably detailed plans and
specifications with such notice showing all the planned changes. Tenant shall
not make any Structural Change without Landlord's prior consent, which consent
shall not be unreasonably withheld, and Landlord may impose reasonable
conditions with respect to Structural Changes, including, without limitation,
requiring Tenant to furnish Landlord with an itemization and security for the
payment of all costs to be incurred in connection with such changes, insurance
against liabilities which may arise out of such Structural Changes, plans and
specifications plus permits necessary for such changes and Landlord may require
that all contractors and subcontractors be approved in advance by Landlord,
which approval shall not be unreasonably withheld. The work necessary to make
any Structural Changes shall be done at Tenant's expense by Tenant's
contractors. Tenant shall reimburse Landlord for Landlord's reasonable and
actual costs in reviewing and approving work done by Tenant's contractors. Upon
completion of such work Tenant shall deliver to Landlord, if payment is made
directly to contractors, evidence of payment, contractors' affidavits and full
and final waivers of all liens for labor, services or materials all in form
reasonably satisfactory to Landlord. Tenant shall defend and hold Landlord and
the Land and Building harmless from all costs, damages, liens and expenses
related to changes made by Tenant or its contractors, and relating to non-
payment by Tenant of the cost of such changes. All work done by Tenant or its
contractors pursuant to Paragraphs 8 or 9 shall be done in a first-class
workmanlike manner using only good grades of materials and shall comply with all
insurance requirements and all applicable laws and ordinances and rules and
regulations of governmental departments or agencies. In hiring such contractors,
Tenant will not knowingly take any action which will directly result in
picketing of the Building or the concerted withholding of services by any
employees of Landlord or Landlord's beneficiary and should any such action occur
Tenant will take any reasonable steps available to bring such action to an end.

          B.   All changes, whether temporary (to the extent then existing) or
permanent in character, made or paid for by Landlord or Tenant, shall without
compensation to Tenant become Landlord's property at the termination of this
Lease by lapse of time or otherwise.  Tenant shall remove any Structural Changes
and restore the Premises to their condition existing prior to such Structural
Changes on or before the termination of this Lease if Landlord notified Tenant
at the time Landlord approved the making of such Structural Changes that
Landlord required such removal. Except for the aforementioned limited obligation
of Tenant to remove certain Structural Changes, upon termination of this Lease,
Tenant shall have no obligation to remove any changes and to restore the
Premises to their condition prior to such changes.

     10.  COVENANT AGAINST LIENS.  Tenant has no authority or power to cause or
          ----------------------
permit any lien or encumbrance of any kind whatsoever, whether created by act of
Tenant, operation of law or otherwise, to attach to or be placed upon Landlord's
title or interest in the Land, Building or Premises, and any and all liens and
encumbrances created by Tenant shall attach to Tenant's interest only.  Tenant
covenants and agrees not to suffer or permit any lien of mechanics or
materialmen or others to be placed against the Land, Building or the Premises
with respect to work or services claimed to have been performed for or materials
claimed to have been furnished to

                                     -18-
<PAGE>

Tenant or to the Premises by contractors retained by Tenant, and, in case of any
such lien attaching, or claim thereof being asserted, Tenant covenants and
agrees within thirty (30) days of learning thereof to cause it to be released
and removed of record or to be bonded over by a title insurer or surety
reasonably satisfactory to Landlord. In the event that any such lien is not so
released and removed or bonded over, Landlord, at its sole option, may take all
action necessary, and to investigate the validity thereof, to release and remove
such lien, and Tenant shall promptly, upon notice, reimburse Landlord for all
reasonable sums, costs and expenses (including reasonable attorneys' fees)
incurred by Landlord in connection with the release and removal of such lien.

     11.  INSURANCE.
          ---------

          A.   Waiver of Subrogation.  Subject to the limitations set forth
               ---------------------
below in this Paragraph 11.A., Landlord and Tenant each hereby waive any and
every claim for recovery from the other for any and all loss or damage to the
Building or Premises or to the contents thereof, which loss or damage is covered
by the provisions of any insurance policy carried, or would have been covered by
the provisions of any insurance policy required to be carried, by either party
pursuant to this Lease.  Inasmuch as this mutual waiver will preclude the
assignment of any such claim by subrogation (or otherwise) to an insurance
company (or any other person), Landlord and Tenant each agree to use their best
efforts to have such insurance policies properly endorsed, if necessary, to
prevent the invalidation of such insurance coverage by reason of such waiver.
In the event that either party's insurer shall refuse to permit such waiver or
agreement even with an additional charge, then, so long as the addition of the
other party as an additional named insured is permitted and does not reduce the
amount recoverable under the terms of the policy by the insuring party or
otherwise adversely affect the insurance coverage, the insuring party shall add
the other party as an additional insured.  If either party's insurer shall
refuse both (i) to permit such waiver or agreement even with an additional
charge and (ii) to name the other party as an additional insured without
adversely affecting the insurance coverage, then, the mutual waivers contained
in the first sentence of this Paragraph 11.A. will no longer be effective.

          B.   Tenant's Coverage.  Tenant shall purchase and maintain insurance
               -----------------
during the entire Term with terms, coverages and in companies reasonably
satisfactory to Landlord, and with such increases in limits as Landlord may from
time to time reasonably request, in all cases subject to a reasonable
deductible, but initially Tenant shall maintain the following coverages in the
following amounts:

          (1)  Commercial General Liability Insurance covering the Tenant (and
     naming as additional insureds the Landlord, any trust or trusts which may
     hold title to the Land and any beneficiary or beneficiaries thereof) for
     claims of bodily injury, personal injury and property damage arising out of
     Tenant's operations, or use of the Premises, for limits of liability not
     less than:

     Bodily Injury Liability        $5,000,000 each occurrence
                                    $5,000,000 annual aggregate

                                     -19-
<PAGE>

     Personal Injury Liability      $5,000,000 annual aggregate

     Property Damage Liability      $1,000,000 each occurrence
                                    $1,000,000 annual aggregate

          (2)  Physical Damage Insurance covering all Tenant improvements within
     the Premises (not including the Base Building, all structural components of
     the Building and all Building systems except for supplementary portions of
     such systems as are owned by Tenant) and all subsequent additions,
     improvements and alterations owned or made by Tenant, and all office
     furniture, furnishings, trade fixtures, office equipment, merchandise and
     all other items of Tenant's property on the Premises.  Such insurance shall
     be written on an "all risks" of physical loss or damage basis, for the full
     replacement cost value of the covered items in amounts that meet any
     coinsurance clauses of the policies of insurance.  Tenant shall deliver to
     Landlord certificates of such insurance evidencing the coverages required
     in (B)(1) and (B)(2) hereof in form reasonably satisfactory to Landlord,
     which certificates shall in each case state that such insurance may not be
     canceled without at least thirty (30) days' prior written notice to
     Landlord.

          C.   Landlord's Coverage.  Landlord hereby agrees to insure the
               -------------------
Building and all portions of the Premises not required to be insured by Tenant
during the Term on an "all risks" of physical loss or damage basis including
boiler and machinery coverage, in an amount that meets any coinsurance clauses
of the policy and is equal to one hundred percent (100%) of the full replacement
cost of the Building (excluding the cost of foundation, excavation and footings
below the lowest basement floor) subject to a reasonable deductible.  Landlord
shall carry rent loss insurance in an amount equal to not less than twelve (12)
months of gross Building rents and earthquake/flood insurance in an amount
customary for first-class office buildings in Chicago, Illinois.  Landlord shall
also carry Commercial General Liability Insurance with at least the same
coverages and amounts as required of Tenant above.  All insurance policies shall
include cross liability and severability of interest endorsements.  Landlord
shall deliver to Tenant, certificates of such insurance in form reasonably
satisfactory to Tenant, which certificates shall in each case state that such
insurance may not be canceled or materially changed without at least thirty (30)
days' prior written notice to Tenant, and said insurance policies shall be
endorsed so that such insurance policies may not be canceled or materially
changed without at least thirty (30) days' prior written notice to Tenant.  All
insurance policies shall be with an insurance company having an A.M. Best Rating
of A- XII or better or an insurance company of equivalent financial standing.

          D.   Workmen's Compensation Coverage.  Both Landlord and Tenant shall
               -------------------------------
carry Workmen's Compensation coverage at such times and in such amounts as may
be required by applicable statutes, and at the request of the other party, shall
supply a certificate evidencing such coverage.

          E.   Avoid Action Increasing Rates.  Tenant shall comply with all
               -----------------------------
applicable laws and ordinances, all orders and decrees of court and all
requirements of other governmental authorities, and shall not, directly or
indirectly, make any use of the Premises which may thereby

                                     -20-
<PAGE>

be prohibited or be dangerous to person or property or which may jeopardize any
insurance coverage or may increase the cost of insurance or require additional
insurance coverage. If by reason of the failure of Tenant to comply with the
provisions of this Paragraph 11.E., any insurance coverage is jeopardized or
insurance premiums are increased, Landlord shall have the option, if the
insurance coverage is jeopardized, to enjoin the use which jeopardizes the
coverage, and if the insurance premium is increased, to require Tenant to make
immediate payment of the increase.

     12.  FIRE OR CASUALTY.
          ----------------

          If the Building or the Premises shall be partially or totally damaged
or destroyed or rendered untenantable by fire or other cause at any time during
the first ten (10) Calendar Years of the Term, Landlord shall be obligated and
shall proceed with reasonable diligence to repair the damage and restore and
rebuild the Building and the Premises at its expense as promptly as reasonably
practicable; provided, however, that Landlord shall not be required to repair or
replace any property required to be insured by Tenant pursuant to Paragraph
11.B.(2).

          In the event Landlord is obligated pursuant hereto to restore and
rebuild the Premises, or any portion thereof, as a result of a fire or other
cause, Landlord shall be obligated to restore or rebuild those portions of the
improvements in the Premises or the affected portion thereof, which would be
Landlord's property upon termination of the Lease to the condition they were in
immediately prior to such damage or destruction, except that the replacement
items shall be new rather than used.

          If the Premises, or any portion thereof, shall be rendered
untenantable as a result of fire or other cause, all Rents payable hereunder
shall be equitably abated to the extent that the Premises shall have been
rendered untenantable, such abatement to be for the period from the date of such
damage or destruction to the Premises to the date the Premises are no longer
untenantable.

          If, at any time after the first ten (10) years Calendar Years of the
Term, less than 50% of  the Building shall be rendered untenantable by fire or
other casualty, Landlord shall be obligated and shall proceed with reasonable
diligence to repair the damage and restore and rebuild the Building and the
Premises at its expense; provided, however, that Landlord shall not be required
to repair or replace any property required to be insured by Tenant pursuant to
Paragraph 11.B.(2).

          If, at any time after the first ten (10) Calendar Years of the Term,
50% or more of  the Premises or the Building shall be rendered untenantable or
inaccessible by fire or other casualty, Landlord shall notify Tenant within one
hundred twenty (120) days after the date of such fire or other casualty of
Landlord's reasonable estimate for the amount of time from the date of such fire
or other casualty necessary to make the required repairs and tender the Premises
to Tenant (the "Rebuild Notice").  Provided Tenant is not in default hereunder
(beyond any applicable cure period), Tenant may, upon notice to Landlord within
thirty (30) days after Tenant's receipt of the Rebuild Notice, obligate Landlord
to repair the damage and restore the Premises at Landlord's expense (the
"Obligation Notice") as promptly as reasonably practicable; provided, however,
that Tenant's

                                     -21-
<PAGE>

Obligation Notice shall be effective only if at the time of service of such
notice, the following conditions (the "Rebuild Conditions") shall be satisfied:

          A.   Tenant shall exercise its option on the first Extension Term as
provided in Paragraph 34 of this Lease; provided, however, that the term of such
first Extension Term shall be increased to the extent necessary to extend the
Term of this Lease so that there shall be a total of ten (10) years remaining in
the Term of the Lease (measured from the date Landlord delivers the restored
Premises to Tenant); and

          B.   Tenant shall waive its contraction options under Paragraph 31 of
this Lease.

Provided the Obligation Notice is effective, Landlord shall be obligated and
shall proceed with reasonable diligence to repair the damage and restore and
rebuild the Building and the Premises at Landlord's expense; provided, however,
that Landlord shall not be required to repair or replace any property required
to be insured by Tenant pursuant to Paragraph 11.B.(2).  If Tenant does not
provide Landlord with the Obligation Notice within thirty (30) days of Tenant's
receipt of the Rebuild Notice, Landlord shall have no obligation to rebuild the
Premises, and Landlord may, at its option, terminate this Lease by giving
written notice thereof to Tenant.  In the event that such notice of termination
shall be given, this Lease shall terminate as of the date provided in such
notice of termination with the same effect as if that date were the expiration
date of the Term.

          Any dispute which may arise between the parties with respect to the
meaning or application of any of the provisions of this Paragraph 12 shall be
determined by a partner at an architectural firm acceptable to Landlord and
Tenant whose fees and expenses shall be borne equally by Landlord and Tenant
("Architect").  If Landlord and Tenant cannot agree on an Architect, then each
shall select an architect and the two architects shall select a third architect
whose decision shall be binding on the parties.

     13.  WAIVER OF CLAIMS.  Neither Landlord nor Landlord's beneficiaries, nor
          ----------------
the agents, officers, directors, shareholders, partners or principals (disclosed
or undisclosed) of either of them shall be liable to Tenant or Tenant's
shareholders, agents, employees, invitees, licensees or other occupants of the
Premises, for any injury or damage to, or loss (by theft or otherwise) of any of
Tenant's property or of the property of any other person, irrespective of the
cause of such injury, damage or loss (including the acts or negligence of any
tenant or of any owners or occupants of adjacent or neighboring property or
caused by operations in construction of any private, public or quasi-public
work) unless due to the negligence of Landlord, or Landlord's beneficiaries or
the agents, officers, directors, partners, principals (disclosed or undisclosed)
or employees of either of them as to matters required to be insured by Landlord
under this Lease, or due to the negligence of Landlord, or Landlord's
beneficiaries or the agents, officers, directors, partners, principals
(disclosed or undisclosed) or employees of either of them as to all other
matters. Neither Tenant, nor Tenant's shareholders, agents, employees, invitees,
licensees or other occupants of the Premises shall be liable to Landlord,
Landlord's beneficiaries, or the agents, officers, directors, shareholders,
partners or

                                     -22-
<PAGE>

principals (disclosed or undisclosed) of either of them for injury or damage to,
or loss (by theft or otherwise) of any of the property of any other person,
irrespective of the cause of such injury, damage or loss (including the acts of
negligence of any tenant or any owners or occupants of the adjacent or
neighboring property or caused by operations in construction of any private,
public or quasi-public work) unless due to the negligence of Tenant or Tenant's
shareholders, agents or employees, as to matters required to be insured by
Tenant or due to the negligence of Tenant or Tenant's shareholders or agents, as
to all other matters. Landlord, Landlord's beneficiaries, and the agents,
officers, directors, partners or principals (disclosed or undisclosed) of either
of them shall not be liable, to the extent of Tenant's recovery under any
insurance carried by it, whether or not required to be carried by the terms of
this Lease, for any loss or damage to any person or property even if due to the
negligence of Landlord, Landlord's beneficiaries or the agents, officers,
directors, partners or principals (disclosed or undisclosed) of either of them.
Similarly, Tenant and Tenant's shareholders, agents, employees, invitees,
licensees or other occupants of the Premises shall not be liable to Landlord, or
Landlord's beneficiaries to the extent of Landlord's or Landlord's
beneficiaries' recovery under any insurance carried by it, whether or not
required to be carried by the terms of this Lease, for any loss or damage to any
person or property even if due to the negligence of Tenant or Tenant's
shareholders, agents, employees, invitees, licensees or other occupants of the
premises. Landlord and Tenant shall each make all reasonable efforts to recover
from its insurers any claim which may provide a recovery to the other.

     14.  NONWAIVER.  No waiver of any provision of this Lease shall be implied
          ---------
by any failure of Landlord or Tenant to enforce any remedy on account of the
violation of such provision, even if such violation be continued or repeated
subsequently, and no express waiver shall affect any provision other than the
one specified in such waiver and that one only for the time and in the manner
specifically stated.  No receipt of monies by Landlord from Tenant after the
termination of this Lease shall in any way alter the length of the Term or of
Tenant's right of possession hereunder or after giving of notice shall
reinstate, continue or extend the Term or affect any notice given Tenant prior
to the receipt of such monies, it being agreed that after the service of notice
or the commencement of a suit or after final judgment for possession of the
Premises, Landlord may receive and collect any Rent due, and the payment of such
Rent shall not waiver or affect such notice, suit or judgment.

     15.  CONDEMNATION.  If all or substantially all of the Land and the
          ------------
Building (herein in this Paragraph 15 sometimes collectively called the
"Project") is taken by condemnation permanently, or for a period in excess of
one (1) year, this Lease shall terminate automatically.

          If the taking is of less than substantially all of the Project or is
for a period of less than the aforesaid year, and if this Lease is for any
reason not terminated pursuant to the following grammatical paragraph, Landlord
shall as soon as possible (but in no event longer than one (1) year) restore the
Project as nearly as can practicably be done (including the Premises) using all
of the award received by Landlord (but not in excess thereof) so as to provide
to the extent reasonably possible comparable space and amenities to those
enjoyed by Tenant under this Lease prior to the taking (or Tenant's
Proportionate Share thereof in case of the application of subparagraph B below);
in such event this Lease shall continue in force at the square foot rental rates
and adjustment herein

                                     -23-
<PAGE>

provided for the Premises applied to the RSF of the Premises existing in the
Project as restored (or Tenant's Proportionate Share thereof in case of the
application of subparagraph B below), but rent shall abate as to periods when
the Premises is not available for normal use by Tenant as a result of such
taking and work of restoration.

          If the taking is of less than substantially all of the Project or is
for a period of less than the aforesaid year, then notwithstanding the foregoing
grammatical paragraph, Landlord and Tenant shall have the right to terminate
this lease in the following circumstances:

          A.   Landlord may terminate if in Landlord's reasonable business
judgment restoration of the Project to substantially the same size and quality
is not economically justified;

          B.   Tenant may terminate if (1) more than twenty-five percent (25%)
of the Premises is so taken by eminent domain and (2) within sixty (60) days
after such taking Landlord has not been able to provide other comparable space
in the Building to temporarily add to the Premises to restore the size of the
Premises to at least eighty-five percent (85%) of its Rentable Area prior to
such taking and Landlord will not, based on Landlord's estimate of the Rentable
Area of the restored Building (such estimate to be delivered to Tenant not more
than forty-five (45) days after such taking), be able to restore the Premises to
100% of their Rentable Area prior to such taking by a date not more than one
year after the date of such taking.  Landlord shall not be bound to offer Tenant
more than Tenant's Proportionate Share (based on the Premises compared to the
Building prior to such taking) of the restored Building, and if Tenant fails to
terminate this Lease as provided herein, the size of the Premises and the Rent
shall be reduced to such share of the restored Building;

          C.   Either Landlord or Tenant may terminate if the taking occurs
within twenty-four (24) months prior to the then effective termination date of
the Term, as it may have been extended.

          In any of the above termination cases, such termination notice must be
given not more than sixty (60) days after the taking (the taking for purposes of
this Paragraph shall be the date when the taking authority requires possession)
and termination must be effective for the portion not taken not less than thirty
(30) or more than ninety (90) days after such notice is given.  For the portion
taken, the termination shall be effective as of the date of the taking.  No
money or other consideration shall be payable by the Landlord to the Tenant in
the case of termination under any of the above provisions, and Tenant shall have
no right to share in the condemnation award except that Tenant shall have the
right to recover out of the award all costs and expense incurred by Tenant in
moving to other space and the amount of the unamortized cost of all improvements
and additions located in the Premises (not including the Allowance contributed
by Landlord).

     16.  ASSIGNMENT AND SUBLETTING.
          -------------------------

          A.   Except as provided below, Tenant shall not, without the prior
written approval of Landlord, which approval shall not be unreasonably withheld,
(i) assign, convey or mortgage this Lease or any interest hereunder; (ii) permit
to occur or permit to exist any assignment of this Lease

                                     -24-
<PAGE>

or (unless bonded or insured over as provided in Paragraph 10 hereof) any lien
upon Tenant's interest, voluntarily or by operation of law; (iii) sublet space
in the Premises; or (iv) except in the case of (iii) above, permit the use of
the Premises by any parties other than (a) Tenant and any Affiliate (as
hereinafter defined) of Tenant, and (b) shareholders, employees and invitees of
any of the foregoing. There shall be no partial assignment of Tenant's interest
in this Lease. Any assignment of 100% thereof shall be governed by Paragraph
16.E. Except as provided in Paragraph 16.B., the word "assignment" in this
Paragraph shall mean a 100% assignment. The term "sublease" and all words
derived therefrom, as used in this Paragraph 16, shall include any subsequent
sublease or assignment under such sublease. Notwithstanding anything to the
contrary contained herein, Landlord's approval of any sublease by Tenant
pursuant to (iii) above shall be limited to Landlord's reasonable approval of
the identity of the proposed subtenant, and the approval conditions listed in
the final sentence of the following paragraph.

          Landlord's election to accept any assignee or subtenant as the tenant
hereunder and to collect rent from such assignee or subtenant shall not release
Tenant or any subsequent tenant from any covenant or obligation under this Lease
except as may be expressly provided in Landlord's written consent.  Landlord's
consent to any assignment, subletting or transfer shall not constitute a waiver
of Landlord's right to withhold its consent to any future assignment, subletting
or transfer, including assignment, subletting or transfer by any subtenant.
Landlord may condition its consent upon execution by the subtenant or assignee
of an instrument confirming such restrictions on further subleasing or
assignment and joining in the waivers and indemnities made by Tenant hereunder.
To obtain the consent of Landlord to an assignment or subletting, Tenant shall
submit to Landlord at least thirty (30) days prior to the proposed effective
date of the assignment or sublease a written notice thereof.  Landlord shall not
be deemed to have unreasonably withheld its consent to a proposed sublease or
assignment if its consent is withheld because: (1) Tenant is then in default
hereunder (beyond any applicable cure period); (2) any notice of termination of
this Lease or termination of Tenant's possession shall have been given pursuant
hereto and the matter or occurrence giving rise to such notice has not been
cured; (3) the proposed sublease or assignment will, as proposed, violate any
city, state or federal law, ordinance or regulation; (4) the proposed use of the
Premises by the subtenant or assignee does not conform to the use set forth in
Paragraph 6 hereof; or (5) the proposed subtenant or assignee is engaged in a
business that would be deleterious to the reputation of the Building.

          B.   Landlord shall be deemed to approve of any assignment or sublease
(however Tenant shall notify Landlord of such assignment or sublease) to: (i)
any party resulting from a merger or consolidation with Tenant so long as Tenant
or any Affiliate (as hereinafter defined) is the surviving dominant party after
such merger; (ii) any party succeeding to the business and assets of Tenant; or
(iii) any Affiliate of Tenant.  For purposes of this Lease, an "Affiliate" shall
mean any firm, person, corporation or entity now or hereafter controlling,
controlled by or under common control with Tenant and such control is exercised
via the ability to direct or cause the direction of, the management and policies
of the other, whether through the ownership of voting securities, common
directors or officers, or otherwise.  At any time during the Term of this Lease,
if Tenant transfers all or a part of Tenant's United States business operations
as of October 1, 1997 (the "U.S. Business") to an Affiliate or any other firm,
person, corporation or entity (collectively, a "Successor

                                     -25-
<PAGE>

Entity"), such Successor Entity shall be made a party to this Lease and shall be
jointly responsible with Tenant for all obligations under this Lease. The
previous sentence shall apply to any transferee of any such Successor Entity,
unless Tenant or any Successor Entity provides Landlord with reasonably
acceptable credit documentation evidencing Tenant's and any Successor Entity's
financial capacity to perform their obligations under this Lease.

          C.   If at any time Tenant subleases (each sublease, a "Tenant
Sublease") up to a total of 200,000 square feet of space in the Premises,
"Sublease Profits" (as defined in Paragraph 16.D.) shall be allocated in the
following manner:

               (i)   If there is 150,000 or more RSF then available for lease in
     the Building at the time of execution of a Tenant Sublease, Landlord and
     Tenant shall divide Sublease Profits between them equally.

               (ii)  If there is less than 150,000 RSF then available for lease
     in the Building at the time of execution of a Tenant Sublease, Tenant shall
     retain 100% of all Sublease Profits.

Notwithstanding the foregoing, if Tenant subleases more than 200,000 square feet
of space in the Premises, the Sublease Profits for the portion of such space
above 200,000 square feet shall be equally divided between Landlord and Tenant,
regardless of the amount of vacant space in the Building at the time of the
sublease.  Calculations of Sublease Profits and sublease RSF percentage
limitations shall be made on a monthly basis throughout the Term.

          D.   "Sublease Profits" shall mean the entire excess, after deduction
of all reasonable costs of subletting (including, without limitation, marketing
costs, rent concessions, reasonable attorneys' fees, commissions and tenant
improvement allowances), of revenues generated by the subleasing of the Premises
or portions thereof over the Rent applicable thereto.  All such revenues shall
be applied first to reimbursement of such costs of subletting until they are
paid in full. Not more than thirty (30) days after the commencement date of a
sublease which will produce Sublease Profits and annually thereafter, Tenant
shall furnish Landlord with a sworn statement setting forth in detail the
computation of the Sublease Profits on such sublease (which computation shall be
based upon generally accepted accounting principles).

          Every such statement shall be conclusive and binding upon Landlord as
to the Sublease Profits paid prior to the date of such statement unless within
thirty (30) days after the receipt of such statement, Landlord shall notify
Tenant that it disputes the correctness of the statement, specifying the
particular respects in which the statement is claimed to be incorrect.  If such
dispute shall not have been settled by agreement within thirty (30) days after
delivery of Landlord's dispute notice, it shall be settled by submission of such
dispute to a national public accounting firm acceptable to Landlord and Tenant,
at the expense of Landlord, except as hereinafter provided, for a final and
binding determination.   Upon determination of such dispute, such Sublease
Profits shall be recalculated and any overpayment shall be returned, or
underpayment promptly made, on demand plus interest on such overpayment or
underpayment at the rate of two percent (2%)

                                     -26-
<PAGE>

per annum over the Prime Rate. Tenant agrees to grant Landlord reasonable access
to Tenant's office for the purpose of verifying Sublease Profits and to make
copies of any and all bills, vouchers and other documents relating thereto,
subject to reimbursement by Landlord for the cost of such copies. In the event
that a review of Tenant's books and records pursuant to this Paragraph reveals
that Tenant has understated Sublease Profits by in excess of five percent (5%)
of the actual Sublease Profits payable to Landlord, Tenant shall also reimburse
Landlord for the reasonable expenses incurred by Landlord in conducting such
review of Tenant's books and records and the accounting firm costs. If a part of
the consideration for any subletting shall be payable other than in cash, the
payment to Landlord shall be payable in cash based on the cash value of the
other non cash considerations. Tenant shall pay Landlord its share of the
Sublease Profits promptly upon Tenant's receipt from time to time of periodic
payments from a subtenant or at such other time as Tenant shall realize the
Sublease Profits from such sublease. Landlord shall not be responsible for any
deficiency in amounts received for a sublease in relation to the Rent due
hereunder.

          E.   In case Tenant proposes to Landlord an assignment of 100% of its
interest in this Lease by the notice described in Paragraph 16.A. hereof,
Landlord shall have the option to terminate this Lease.  If Landlord wishes to
exercise its option to terminate, Landlord shall, within fifteen (15) days after
Landlord's receipt of the notice from Tenant described in Paragraph 16.A., send
to Tenant a notice of termination.  The date on which such termination will be
effective shall be the proposed commencement date of the assignment.  Tenant
shall automatically be released from all obligations under this Lease to be
performed after the effective date of such termination. Landlord shall have no
option to terminate this Lease for assignments or sublets pursuant to Paragraph
16.B. hereof.

          If Landlord approves such assignment but does not so terminate this
Lease, Tenant may proceed with the proposed assignment.  Landlord and Tenant
shall share in the ratio of 50% to 50% the profits from said assignment
calculated and verified in the same fashion as described in Paragraph 16.D.
above.

     17.  SURRENDER OF POSSESSION.  On the last day of the Term, or upon any
          -----------------------
earlier termination of this Lease, or upon any re-entry by Landlord upon the
Premises, Tenant shall quit and surrender the Premises to Landlord.  Tenant
shall remove all of Tenant's trade fixtures, furniture and other personal
property therefrom, shall restore the Premises wherever such removal results in
damage thereto and shall otherwise generally leave the Premises in a reasonably
tenantable condition.  Any interest of Tenant in the alterations, improvements
and additions to the Premises shall, without compensation to Tenant, become
Landlord's property at the termination of this Lease by lapse of time or
otherwise and such alterations, improvements and additions shall be relinquished
to Landlord.  Tenant shall remove alterations, additions and improvements and
make such restorations to the Premises as are required pursuant to Paragraph
9.B. herein.

     If Tenant shall fail or refuse to remove any of Tenant's property from the
Premises, Tenant shall be conclusively presumed to have abandoned the same, and
title thereto shall thereupon pass to Landlord without any cost either by
setoff, credit, allowance or otherwise.

                                     -27-
<PAGE>

     18.  HOLDING OVER.  Tenant shall pay to Landlord Rent at an annual rate
          ------------
equal to the greater of (i) Current Market Rate for the Premises, determined, if
necessary, in accordance with Paragraph 30.G. hereof, or (ii) one hundred fifty
percent (150%) of then current Base Rent for the Premises, plus one hundred
fifty percent (150%) of the Additional Rent paid by Tenant during the previous
Calendar Year herein provided, payable in monthly installments on the first day
of each month or portion thereof for which Tenant shall retain possession of the
Premises or any part thereof after the expiration or termination of the Term or
of Tenant's right of possession, whether by lapse of time or otherwise.  Tenant
shall also pay all damages sustained by Landlord by reason of such retention if
such retention shall continue for thirty (30) or more days.

     19.  ESTOPPEL CERTIFICATE.  Landlord and Tenant each agree, from time to
          --------------------
time upon not less than ten (10) days' prior request by the other party, to
execute, acknowledge and deliver to the other party a statement in writing
certifying (i) that this Lease is unmodified and in full force and effect (or if
there have been modifications, a description of such modifications and that the
Lease as modified is in full force and effect); (ii) whether the Term has
commenced and the dates to which Rent and other charges have been paid; (iii)
that the other party is not in default under any provision of this Lease, to the
knowledge of the party furnishing the certificate, or if in default, the nature
thereof in detail (and in case of certificates requested of Tenant, that, to the
best knowledge of Tenant, Tenant has no existing defenses, set-offs, or claims
hereunder, or, if any, specifying same); and (iv) such further matters as
reasonably may be requested, it being intended that any such statement may be
relied upon by any prospective assignee or sublessee of any tenant (including
Tenant) of the Building, any mortgagees or prospective mortgagees thereof, any
lender to Tenant, or any prospective and/or subsequent purchaser or transferee
of all or part of Landlord's interest in the Land and/or Building or of Tenant's
interest in the Premises.

     20.  SUBORDINATION.  This Lease shall be prior to any mortgage or ground or
          -------------
underlying lease; provided, however, Tenant agrees to subordinate its rights
hereunder at all times to (i) the lien of any mortgage or mortgages designated
by Landlord and to all advances made or thereafter made upon the security
thereof, and (ii) to all future ground leases or underlying leases of the Land
and the Building designated by Landlord and to execute any such reasonable
agreements evidencing such subordination as may be reasonably required by the
mortgagee, trustee or ground or underlying lessor, as the case may be, and to
attorn to and to recognize, as Landlord, the purchaser at a foreclosure sale or
the mortgagee, trustee or its nominee in the event the mortgagee, trustee or
such nominee accepts a deed in lieu of foreclosure, or the ground or underlying
lessor in the event of the termination of such underlying or ground lease in
return for and upon delivery to Tenant by such mortgagee, trustee or ground or
underlying lessor, as the case may be (each being referred to as a "Lender"), of
an agreement in a form reasonably satisfactory to Lender and Tenant providing
that in the event of a foreclosure of such mortgage or the giving of a deed in
lieu of foreclosure or termination of such ground or underlying lease, this
Lease shall not be terminated and Tenant may remain in possession of the
Premises pursuant to the terms of this Lease and retain all of the rights,
options and privileges granted to it hereunder as long as Tenant continues to
perform its obligations hereunder and further providing that the purchaser at a
foreclosure sale or transferee in the case of a deed in lieu of foreclosure or
ground or underlying lessor, as the case may be, will assume all of the
obligations of Landlord in such case; provided, however, that the holder of any
mortgage, or

                                     -28-
<PAGE>

purchaser at any foreclosure sale, as the case may be, shall not be bound by any
prepayment of Base Rent or Additional Rent which Tenant may have paid in excess
of the amounts then due for the current month (the "SNDA"). Tenant agrees to
enter into an SNDA with any future Lender whose terms are no less favorable to
Lender than those contained in the SNDA entered into between Tenant and Citicorp
Real Estate, Inc. concurrently herewith.

          Tenant also agrees to give any holder of any first mortgage, by
registered or certified mail, a copy of any notice or claim of default served
upon the Landlord by Tenant, provided that prior to such notice Tenant has been
notified in writing (by way of service on Tenant of a copy of an assignment of
Landlord's interests in leases, or otherwise) of the address of such first
mortgage holder.

     21.  CERTAIN RIGHTS RESERVED BY LANDLORD.
          -----------------------------------

          A.   Landlord shall have the following rights without liability to
Tenant for damage or injury to property, person or business on account of the
exercise thereof, and the exercise of any such rights shall not be deemed to
constitute an eviction or disturbance of Tenant's use or possession of the
Premises and shall not give rise to any claim for set off or abatement of rent
or any other claims:

          (1)  To install, affix and maintain any and all signs on the exterior
     and on the interior of the Building; except that there shall be no signs
     for retail or commercial tenants in the lobby of the office portion of the
     Building and, other than for a tenant then having 400,000 RSF or more under
     lease ("Large Tenant"), there shall be no sign on the exterior of the
     Building indicating the occupancy of any tenant in the Building without the
     approval of Tenant which it may reasonably withhold.  If there shall be a
     sign proposed for a Large Tenant, Tenant shall have the right to approve:
     (i)  the installation of the sign and (ii) the text, location, size and
     style of such sign, such approvals not to be unreasonably withheld or
     delayed, and Tenant shall also have the right to equivalent signage.  All
     Tenant's rights to approve under this subparagraph shall exist only so long
     as Tenant (including any Affiliate or Successor Entity) is not in default
     hereunder (beyond any applicable cure period) and occupies at least 400,000
     RSF in the Building.  Landlord hereby approves all Tenant signage existing
     as of the date hereof.  Landlord shall have the right to approve (which
     approval not to be unreasonably withheld) all additional lobby or exterior
     signage proposed by Tenant and not existing as of the date hereof.

          (2)  To decorate or to make repairs, alterations, additions, or
     improvements, whether structural or otherwise, in and about the Building,
     or any part thereof, and for such purposes to enter upon the Premises, and
     during the continuance of any of such work, to temporarily close doors,
     entryways, public space and corridors in the Building and to interrupt or
     temporarily suspend services or use of facilities, all without affecting
     any of Tenant's obligations hereunder, so long as the Premises are
     accessible and usable and provided that Landlord shall use due diligence
     with respect thereto.  Unless such repairs, renewals or improvements can be
     made during business hours without material interference

                                     -29-
<PAGE>

     with Tenant's business operations and, except in the case of an emergency,
     Landlord shall make such repairs, alterations, or replacements during non-
     business hours;

          (3)  To furnish door keys or magnetic cards for the entry door(s) in
     the Premises at the commencement of the Lease and to retain at all times,
     and to use in appropriate instances, keys or magnetic cards to all doors
     within and into the Premises; provided that such system will permit the
     Landlord upon request of Tenant to cancel the effectiveness of the card
     held by any shareholder or employee or invitee of Tenant upon such person's
     departure from Tenant or for any other reason.  Tenant agrees to purchase
     only from Landlord additional duplicate keys or magnetic cards as required
     (at Landlord's actual cost for such keys or magnetic cards), to change no
     locks or magnetic card readers, and not to affix locks or magnetic card
     readers on doors without the prior written consent of the Landlord not to
     be unreasonably withheld; provided that Landlord shall respond to Tenant's
     request for such consent with reasonable promptness.  Upon the expiration
     of the Term or Tenant's right to possession, Tenant shall return all keys
     or magnetic cards to Landlord and shall disclose to Landlord the
     combination of any safes, cabinets or vaults left in the Premises;

          (4)  To designate a building standard window covering for exclusive
     use throughout the Building;

          (5)  To approve the weight, size and location of safes, vaults,
     library shelving, file storage equipment and other heavy equipment and
     articles in and about the Premises and the Building so as not to exceed the
     legal live load per square foot designated by the structural engineers for
     the Building, and to require all such items and furniture and similar items
     to be moved into or out of the Building and Premises only at such times and
     in such manner as Landlord shall reasonably direct in writing. Tenant shall
     not install or operate machinery or any mechanical devices of a nature not
     directly related to Tenant's ordinary use of the Premises without the prior
     written consent of Landlord, not to be unreasonably withheld;

          (6)  To establish reasonable controls for the purpose of regulating
     all property and packages, both personal and otherwise, to be moved into or
     out of the Building and Premises and all persons using the Building after
     normal office hours;

          (7)  To reasonably regulate delivery and service of supplies and the
     usage of the loading docks, receiving areas and freight elevators;

          (8)  To show the Premises to prospective tenants within the final
     twelve (12) months of the Term (as the same may be extended), at reasonable
     times, and in a manner not to interfere with Tenant's use and enjoyment of
     the Premises and, if vacated or abandoned, to show the Premises at any time
     and to prepare the Premises for reoccupancy;

                                     -30-
<PAGE>

          (9)  To erect, use and maintain pipes, ducts, wiring and conduits, and
     appurtenances thereto, in and through the Premises at reasonable locations
     that do not unreasonably interfere with Tenant's business;

          (10) To enter the Premises at any reasonable time upon reasonable
     prior notice (except no notice shall be required in the case of emergency)
     to inspect the Premises;

          (11) Only Landlord or one or more persons approved by Landlord will be
     permitted to furnish bootblacking and barbering.  Landlord may fix the
     hours during which, and the regulations under which, such supplies and
     services are to be furnished.  Landlord expressly reserves the right to act
     as, or to designate, at any time and from time to time, an exclusive
     supplier of all or any one or more of said supplies and services, provided
     all such supplies and services shall be furnished on a basis which is
     reasonably competitive to that which would otherwise be directly available
     to Tenant; and Landlord furthermore expressly reserves the right to exclude
     from the Building any person attempting to furnish any of said supplies or
     services but not so designated by Landlord.  Notwithstanding the foregoing,
     Tenant shall have the right to specify the vendors for other supplies and
     services for the Premises, subject to Landlord's approval, which approval
     shall not be unreasonably withheld or delayed;

          (12) To close the Building after hours and on any day which is not a
     business day, subject, however, to Tenant's right to admittance to the
     Premises at any time under such reasonable regulations as Landlord may
     prescribe from time to time, which may include but shall not be limited to,
     a requirement that persons entering or leaving the Building identify
     themselves to a watchman by registration or otherwise and establish their
     right to enter or leave the Building.

     22.  RULES AND REGULATIONS.  Tenant agrees to observe the Rules and
          ---------------------
Regulations for Tenant attached hereto as Exhibit E and made a part hereof.
Landlord shall have the right from time to time to prescribe additional rules
and regulations which, in its reasonable judgment, may be desirable for the use,
entry, operation and management of the Premises and Building, each of which
rules and regulations and any amendments thereto shall become a part of this
Lease.  Tenant shall comply with all such rules and regulations, provided such
rules and regulations are uniformly enforced against all Building tenants and
except to the extent that such rules and regulations unreasonably contradict or
abrogate any right or privilege herein expressly granted to Tenant. Landlord
will provide Tenant with a written copy of any modifications to the Rules and
Regulations.

     23.  REMEDIES.  If default shall be made in the payment of the Rent or any
          --------
installment thereof or in the payment of any other sum required to be paid by
Tenant under this Lease and such default shall continue for ten (10) days after
written notice to Tenant; or if default shall be made in the observance or
performance of any of the other covenants or conditions in this Lease which
Tenant is required to observe and perform and such default shall continue for
thirty (30) days after written notice to Tenant, unless with respect to any non-
monetary default which cannot be cured within thirty (30) days, Tenant, in good
faith, promptly after receipt of such notice, shall have

                                     -31-
<PAGE>

commenced and thereafter shall continue diligently to reasonably prosecute and
complete all action necessary to cure such default within an additional forty-
five (45) days; or if a default which involves a hazardous condition is not
cured by Tenant as promptly as reasonably possible upon written notice to
Tenant; or if any involuntary petition in bankruptcy shall be filed against
Tenant under any federal or state bankruptcy or insolvency act and shall not
have been dismissed within ninety (90) days from the filing thereof, or if a
receiver shall not have been dismissed within ninety (90) days from the date of
his appointment, or if Tenant shall make an assignment for the benefit of
creditors, or if Tenant shall admit in writing Tenant's inability to meet
Tenant's debts as they mature, the levy upon execution or the attachment by
legal process of the leasehold interest of Tenant or the filing or creation of a
lien in respect of such leasehold interest, which lien shall not be released or
discharged within thirty (30) days after the date of filing, bankruptcy,
reorganization, insolvency or liquidation proceedings, or other proceedings for
relief under any bankruptcy law are instituted by or against Tenant and not
dismissed within ninety (90) days after institution, then Landlord may treat the
occurrence of any one or more of the foregoing events as a breach of this Lease,
and thereupon at its option may, with or without any additional notice or demand
of any kind to Tenant or any other person, have any one or more of the following
described remedies in addition to all other rights and remedies provided at law
or in equity or elsewhere herein:

          (1)  Landlord may terminate this Lease and the Term created hereby, in
     which event Landlord may forthwith repossess the Premises and be entitled
     to recover forthwith, as damages a sum of money equal to all sums due and
     owing Landlord hereunder to said date, all reasonable costs and expenses
     incurred by Landlord as a result of Tenant's default, including reasonable
     attorneys' fees, the excess of the then present value of the Rent provided
     to be paid by Tenant for the balance of the Term over the fair market
     rental value (discounted to present value) of the Premises, after deduction
     of all anticipated expenses or reletting, for such period, and the
     unamortized portion of the Allowance given Tenant hereunder (assuming an
     amortization of such amount over the shortest period allowable under the
     Internal Revenue Code for the type of improvements installed in the
     Premises). In computing present value, a discount rate equal to the rate of
     interest on the most recently issued 10 Year U.S. Treasury bonds shall be
     used.  Should the fair market rental value of the Premises, after deduction
     of a reasonable estimate expenses of reletting, for the balance of the Term
     exceed the present value of the Rent provided to be paid by Tenant for the
     balance of the Term, Landlord shall have no obligation to pay to Tenant the
     excess of any part thereof; and

          (2)  Landlord may terminate Tenant's right of possession and may
     repossess the Premises by forcible entry and detainer suit, by taking
     peaceful possession or otherwise, without terminating this Lease or
     Tenant's obligation to pay Rent hereunder, in which event Landlord shall
     attempt to relet the same for the account of Tenant, for such rent and upon
     such terms as shall be reasonably satisfactory to Landlord.  For the
     purpose of such reletting, Landlord is authorized to decorate, repair,
     remodel or alter the Premises.  If Landlord shall fail to relet the
     Premises, Tenant shall pay to Landlord as damages a sum equal to the amount
     of the Rent reserved in this Lease for the balance of the Term, as and when
     payable pursuant to this Lease.  If the Premises are relet and a sufficient
     sum shall not be realized from such

                                     -32-
<PAGE>

     reletting after paying all of the reasonable costs and expenses of all
     decoration, repairs, remodeling, alterations and additions and the expenses
     of such reletting and of the collection of the rent accruing therefrom to
     satisfy the Rent provided for in this Lease, Tenant shall satisfy and pay
     the same upon demand therefor from time to time. Tenant shall not be
     entitled to any rents received by Landlord in excess of the Rent provided
     for in this Lease. Tenant agrees that Landlord may file suit to recover any
     sums falling due under the terms of this Paragraph 23 from time to time and
     that no suit for or recovery of any portion due Landlord hereunder shall be
     any defense to any subsequent action brought for any amount not theretofore
     reduced to judgment in favor of Landlord or otherwise recovered by
     Landlord.

          In the event Landlord defaults in the performance of any of its
obligations to Tenant hereunder, or breaches any representation, express or
implied, to Tenant in connection with this Lease, and such default or breach
continues for a period of thirty (30) days following written notice thereof from
Tenant to Landlord unless with respect to a default or breach which cannot be
cured within thirty (30) days, Landlord, in good faith, promptly after receipt
of such notice, shall have commenced and thereafter shall continue diligently to
reasonably prosecute and complete all action necessary to cure such default
within an additional forty-five (45) days, then Tenant may (i) take such action
as is reasonably necessary to cure Landlord's default, (ii) bring suit against
Landlord for damages, and/or (iii) bring suit to specifically enforce Landlord's
obligations under this Lease.  In the event Tenant cures such default by
Landlord as provided in item (i), Landlord will reimburse Tenant for all
reasonable costs and expenses incurred by Tenant in curing Landlord's default
within ten (10) days after notice from Tenant given from time to time as costs
are incurred. Notwithstanding the foregoing, in cases of emergency, Tenant may
cure Landlord's obligations if Landlord fails to commence the cure thereof as
soon as reasonably possible following Tenant's notice to Landlord.

     24.  EXPENSES OF ENFORCEMENT.
          -----------------------

          A.   Tenant shall pay upon demand all Landlord's reasonable costs,
charges and expenses, including the reasonable fees and out-of-pocket expenses
of counsel, agents and others retained by Landlord incurred in successfully
enforcing Tenant's obligations hereunder or incurred by Landlord in any
litigation, negotiation or transaction in which Tenant causes Landlord without
Landlord's fault to become involved or concerned.

          B.   Landlord shall pay upon demand all Tenant's reasonable costs,
charges and expenses, including the reasonable fees and out-of-pocket expenses
of counsel, agents and others retained by Tenant incurred in successfully
enforcing Landlord's obligations hereunder or incurred by Tenant in any
litigation, negotiation or transaction in which Landlord causes Tenant without
Tenant's fault to become involved or concerned.

     25.  COVENANT OF QUIET ENJOYMENT.  Landlord covenants that Tenant, on
          ---------------------------
paying the Rent, charges for services and other payments herein reserved and on
keeping, observing and performing all the other terms, covenants, conditions,
provisions and agreements herein contained

                                     -33-
<PAGE>

on the part of Tenant to be kept, observed and performed, shall, during the
Term, peaceably and quietly have, hold and enjoy the Premises subject to the
terms, covenants, conditions, provisions and agreements hereof and Landlord
shall defend, at Landlord's sole cost and expense, Tenant's right of quiet
enjoyment.

     26.  REAL ESTATE BROKER. Landlord and Tenant represent to each other that
          ------------------
neither has dealt with any real estate broker with respect to this Lease except
for LaSalle Partners Limited, which is a consultant to Tenant and is to be paid
by Tenant at its sole cost and expense, and The John Buck Company, which is a
consultant to Landlord and is to be paid by Landlord at its sole cost and
expense.  To each party's knowledge, except for the aforementioned brokers,  no
other broker initiated or participated in the negotiation of this Lease,
submitted or showed the Premises to Tenant or is entitled to any commission in
connection with this Lease, and each agrees to indemnify, defend and hold the
other harmless from all claims from any other real estate broker for commission
or fees in connection with this Lease claiming through such representing party.

     27.  MISCELLANEOUS.
          -------------

          A.   Building Name. Provided Tenant (including any Affiliate or
               -------------
Successor Entity) occupies at least 400,000 RSF in the Building and is not in
default hereunder (beyond any applicable cure period), the Building shall be
named "The Leo Burnett Building at 35 West Wacker Drive", and Tenant shall have
the sole right, from time to time, to change said name, subject to the written
approval of Landlord, which approval shall not unreasonably be  withheld or
delayed.

          B.   Approval of Tenants.   Provided Tenant is not in default
               -------------------
hereunder (beyond any applicable cure period) and so long as Tenant (including
any Affiliate or Successor Entity) shall occupy at least 400,000 RSF within the
Building, Tenant shall have the right to approve any lease first entered into
after the date hereof (excluding renewals or expansions of existing tenants) to
(i) any advertising agency (a "Restricted Tenant") and (ii) to any tenant in
which the name "Burnett" or any confusingly similar name is a part.  Such
approval may be arbitrarily withheld.  Landlord shall request such approval in
writing and if Tenant does not object in writing within ten (10) days of receipt
of Landlord's notice, then Tenant shall be deemed to have approved the proposed
lease. Notwithstanding the foregoing, Landlord may lease up to 25,000 RSF on one
(1) floor above the 34th floor of the Building to one (1) Restricted Tenant
without Tenant's approval, provided, however, that Landlord may not lease any
space in the Building to any of the following companies (including any firm,
person, corporation or entity now or hereafter controlling, controlled by or
under common control with said companies and such control is exercised via the
ability to direct or cause the direction of, the management and policies of the
other, whether through the ownership of voting securities, common directors or
officers, or otherwise) or any successor entity or any other party who succeeds
to a material portion of said companies' business which portion competes with
the business then being conducted by Tenant: (i) Interpublic Group Cos Inc.,
(ii) Omnicom Group Inc., (iii) True North Communications, (iv) Cordiant ADS, (v)
Grey Advertising, (vi) WPP Group, and (vii) Young & Rubicam.

                                     -34-
<PAGE>

          C.   Rights Cumulative.  All rights and remedies of Landlord and
               -----------------
Tenant under this Lease shall be cumulative, and none shall exclude any other
rights and remedies allowed by law.

          D.   Interest.  All payments becoming due under this Lease and
               --------
remaining unpaid when due shall bear interest until paid at the rate of two
percent per annum above the Prime Rate (but in no event at a rate which is more
than the highest rate which is at the time lawful in the State of Illinois).

          E.   Terms.  The necessary grammatical changes required to make the
               -----
provisions hereof apply either to corporations or partnerships or individuals,
men or women, as the case may require, shall in all cases be assumed as though
in each case fully expressed.

          F.   Successors and Assigns.  Any reference in this Lease to Landlord
               ----------------------
or Tenant shall extend also to its respective successors and assigns, unless
expressly provided to the contrary. Each of the provisions of this Lease shall,
as the case may require, bind or inure to the benefit not only of Landlord and
of Tenant, but also of their respective successors or assigns, provided this
Paragraph 27.F.  shall not permit any assignment by Tenant contrary to the
provisions of Paragraph 16 hereof.

          G.   Lease Contains All Terms.  All of the representations and
               ------------------------
obligations of Landlord and Tenant are contained herein and in the Exhibits
attached hereto, and no modification, waiver or amendment of this Lease or of
any of its conditions or provisions shall be binding upon the Landlord or Tenant
unless in writing signed by Landlord or Tenant, as the case may be, or by a duly
authorized agent of Landlord or Tenant, as the case may be, empowered by a
written authority signed by Landlord or Tenant, as the case may be.

          H.   Delivery for Examination.  Submission of the Lease for
               ------------------------
examination shall not bind either party in any manner, and no Lease or
obligations by either party shall arise until this instrument is signed by both
Landlord and Tenant and delivery is made to each.

          I.   Transfer of Landlord's Interest.  Tenant acknowledges that
               -------------------------------
Landlord and any of its successors and assigns may assign its interest in this
Lease to a mortgage lender as additional security on condition that such an
assignment shall not release Landlord from its obligations hereunder and that
Tenant shall continue to look to Landlord for the performance of its obligations
hereunder.  Notwithstanding aforesaid, Tenant agrees that the then Landlord
shall not be liable for any acts or omissions on the part of any successor,
assignee or transferee of Landlord after Landlord has made a bona fide
conveyance of ownership of the Land and Building.

          J.   Landlord's Title.  Landlord's title is and always shall be
               ----------------
paramount to the title of Tenant.  Nothing herein contained shall empower Tenant
to commit or engage in any act which can, shall or may encumber the title of
Landlord.

          K.   Recording.  This Lease may be recorded by Tenant, and Tenant may
               ---------
record a memorandum thereof in form and substance reasonably approved by
Landlord.

                                     -35-
<PAGE>

          L.   Captions.  The captions of Paragraphs and subparagraphs are for
               --------
convenience only and shall not be deemed to limit, construe, affect or alter the
meaning of such paragraphs or subparagraphs.

          M.   Only Landlord/Tenant Relationship.  Nothing contained in this
               ---------------------------------
Lease shall be deemed or construed by the parties hereto or by any third party
to create the relationship of principal and agent, partnership, joint venturer
or any association between Landlord and Tenant, it being expressly understood
and agreed that neither the method of computation of Rent nor any act of the
parties hereto shall be deemed to create any relationship between Landlord and
Tenant other than the relationship of landlord and tenant.

          N.   Application of Payments.  Landlord shall have the right to apply
               -----------------------
payments received from Tenant pursuant to this Lease (regardless of Tenant's
designation of such payments) to satisfy any obligations of Tenant hereunder, in
such order and amounts  as Landlord, in its reasonable discretion, may elect.

          O.   Time of Essence.  Time is of the essence of this Lease and each
               ---------------
of its provisions.

          P.   Governing Law.  Interpretation of this Lease shall be governed by
               -------------
the law of the State of Illinois.

          Q.   Partial Invalidity.  If any term, provision, or condition
               ------------------
contained in this Lease shall, to any extent, be invalid or unenforceable, the
remainder of this Lease (or the application of such term, provision or condition
to persons or circumstances other than those in respect of which it is invalid
or unenforceable) shall not be affected thereby, and each and every other term,
provision and condition of this Lease shall be valid and enforceable to the
fullest extent possible permitted by law.

          R.   Sculptures.  As long as Tenant (including any Affiliate and
               ----------
Successor Entity) occupies at least 400,000 RSF in the Building, Landlord hereby
agrees to keep all sculptures located in the Building lobby as of the date
hereof in the Building lobby.

     28.  LANDLORD'S SPECIAL COVENANTS.  Landlord covenants and agrees with
          ----------------------------
Tenant that:

          A.   Parking.  Tenant shall have the right to lease for the initial
               -------
fifteen (15) years of the Term up to 75 parking spaces in the Building's
underground garage at the rate of $250.00 per space, per month (inclusive of all
taxes), which amount shall not be subject to escalation; except that in addition
to, and concurrently with,  the payment of the foregoing $250 parking charge,
Tenant shall pay to Landlord for each of its parking spaces, the $30.00 per
month tax/fee imposed by the City of Chicago upon Landlord for each vehicle
parked in the garage.  Landlord and Tenant acknowledge and agree that Tenant
shall not be responsible for any increases to the foregoing City

                                     -36-
<PAGE>

of Chicago tax/fee or any new parking taxes or fees, but said $30.00 per month
tax/fee shall be reduced by the amount of any reduction, if any, to the
foregoing tax/fee levied by the City of Chicago. Such spaces shall be for the
exclusive use by Tenant and shall be in locations designated by Tenant, such
rights to extend through the term of this Lease and any extensions thereof, and
to include the right to sublease such spaces. In addition, Tenant shall be
entitled, at regular annual Building rates therefor, to any parking spaces which
were rented by the immediately preceding tenants in space added to the Premises
after the Commencement Date. Tenant may release such parking spaces, or any
thereof, so leased at any time(s) on not less than thirty (30) days' notice and
shall not have any rights for the number of spaces so released at any time
thereafter. Tenant may request additional parking spaces over and above the 75
space allocation which, subject to availability, shall be provided at the
monthly rate then prevailing in similar parking structures in downtown Chicago.
Landlord shall provide reduced parking rates for bikes and motorcycles
consistent with rates for bikes and motorcycles charged by similar parking
structures in downtown Chicago. Landlord shall continue to provide the amount,
type and quality of parking services which Landlord provides as of the date
hereof, including, but not limited to, car washes. If in the future Landlord
provides reserved parking spaces to other tenants in the Building, Landlord
shall also provide Tenant with the same right to have reserved parking as
provided to such other tenant.

     Landlord acknowledges that Tenant has a storage and workshop space on level
P-2 of the Building's parking garage (the "Storage and Workshop Space"), which
the parties acknowledge and agree contains approximately 1,500 RSF and occupies
six (6) parking spaces.  With respect to the Storage and Workshop Space, on or
before the Commencement Date, Tenant shall, in Tenant's sole discretion, either
(i) vacate the Storage and Workshop Space and remove all of Tenant's belongings
from the Storage and Workshop Space, (ii) elect to have the six (6) spaces of
the Storage and Workshop Space included as part of the aforementioned 75 parking
spaces allocated to Tenant or (iii) elect to lease the six (6) spaces of the
Storage and Workshop Space for the Term and to pay for such six (6) spaces at
the monthly rate for parking spaces charged by Landlord for spaces in the
Building's parking garage other than Tenant's 75 spaces.

          B.   Communication System.  Tenant shall have the right to maintain
               --------------------
any satellite, microwave, or other communication systems, if any, belonging to
Tenant and installed upon the Building's roof as of the Commencement Date
hereof.  In addition, Tenant shall have the right at any time during the Term
(or any extension thereof) to lease from Landlord up to 400 contiguous square
feet of additional space on the roof of the Building at no cost to Tenant for a
satellite, microwave or other communications system, so long as such system does
not impair the use by other tenants of their space in the Building or other
satellite, microwave or other communication systems then installed, or in
Landlord's reasonable judgment, compromise the aesthetics of the Building. Once
Tenant installs any of the foregoing systems, Landlord shall not enter into any
new agreements with any other tenants for the installation of  a satellite,
microwave or other communications system which impairs the use by Tenant of: (i)
its  space in the Building, or (ii) any satellite, microwave or other
communication systems then installed by Tenant.  Tenant shall submit plans for
such system and the names of the contractors who will be installing such system,
all of which shall be subject to Landlord's reasonable approval.  Tenant shall
pay all costs related to the installation, operation and maintenance of such
system, including without limitation, the cost of any structural modifications

                                     -37-
<PAGE>

to the Building made by Landlord and necessary, in the opinion of Landlord's
structural engineer, to accommodate the system.  Tenant shall, at Landlord's
option, remove any system(s) at the expiration of the Term, unless the Term is
extended, in which case Tenant shall, at Landlord's option, remove the system(s)
at the expiration of the Term as extended.  In each case, Tenant shall restore
the Building to the condition existing prior to the installation of any such
system(s).  Tenant shall secure all zoning and regulatory approvals necessary
for the system, at its expense.

          C.   Right of First Refusal for Roof Space. In addition to the above
               -------------------------------------
rights to rent space on the roof, Landlord hereby grants Tenant a right of first
refusal for any proposed leasing of space on the roof of the Building to any
other party.  At such time as Landlord desires to enter into a lease of any part
or portion of the space on the roof of the Building with a bona fide tenant,
Landlord shall give Tenant written notice of the terms and conditions of the
proposed lease.  Tenant shall have ten (10) business days from the receipt of
such notice to notify Landlord in writing that Tenant elects to lease said space
on the same terms and conditions as contained in Landlord's notice, and in such
case, Landlord and Tenant shall then enter into a lease of said space.  If
Tenant exercises this right, Tenant shall in fact use said roof space for
satellite, microwave or communications purposes.  In the event Tenant does not
exercise such election within said ten (10) day period, then Tenant shall be
deemed to have waived this right of first refusal for the proposed lease, but
such waiver shall be only for the lease proposed in Landlord's notice and not
for any subsequent proposed lease of space on the roof.  If the proposed lease
does not become effective within ninety (90) days after Landlord's notice, then
Tenant shall again have this right of first refusal with respect to that
proposed lease.  In no event shall Landlord allow any roof space to be used in a
manner that unreasonably interferes with Tenant's satellite, microwave or other
communications system on the roof.

          D.   Landlord's Alterations After Construction.  Other than as is
               -----------------------------------------
specifically allowed under the paragraphs of this Lease,  so long as Tenant
(including any Affiliate or Successor Entity) occupies at least 400,000 RSF of
the Building and is not in default hereunder (beyond any applicable cure
period), then the Landlord shall not, without in each case obtaining the prior
written consent of Tenant, construct, install or make any major alteration to,
or change in,  the exterior or facade of the Building, elevator lobby design or
signage, elevator cab upgrades, bathroom upgrades or corework, unless such major
alterations or changes are approved by Tenant, such approval not to be
unreasonably withheld or delayed.

     29.  NOTICES.  All notices to be given under this Lease shall be in writing
          -------
and delivered personally or deposited in the United States mail, certified or
registered mail with return receipt requested, postage prepaid, addressed as
follows:

          A.   If to Landlord, to:

               The John Buck Company
               233 South Wacker Drive
               Suite 550
               Chicago, Illinois  60606

                                      -38-
<PAGE>

               Attention:  President

               and to:

               Starwood Capital Group, L.P.
               Three Pickwick Plaza
               Suite 250
               Greenwich, Connecticut 06830
               Attention:  Madison Grose and Jonathan Eilian

or to such other person or such other address designated by notice sent by
Landlord to Tenant.

          B.   If to Tenant:

               Leo Burnett Company, Inc.
               35 West Wacker Drive
               Chicago, Illinois  60601
               Attention:  General Counsel

               with a copy (in the case of notice of default) to the attention
of:

               Kirkland & Ellis
               200 East Randolph Drive
               Chicago, Illinois 60601
               Attention: Stephen G. Tomlinson, Esq.

or to such other address as is designated by Tenant in a notice to Landlord.

          Notice by mail shall be deemed to have been given on the second
business day after deposit in the United States mail as aforesaid.

     30.  TENANT'S EXPANSION
          ------------------

          A.   Tenant shall have and is hereby granted the options to add the
 Expansion Space (hereinafter described in the following table), for the
 remaining Term of this Lease and any extensions thereof upon the same terms,
 covenants and conditions contained in this Lease, except for the payment of
 Base Rent (which shall be payable in the amounts described below) and except as
 otherwise specifically provided in this Paragraph 30. Tenant's obligation to
 pay Tenant's Expense Participation Amount, Base Rent and any other Rent or
 Additional Rent for any particular Expansion Space shall commence on the date
 such space is actually made available to Tenant to be added to

                                      -39-
<PAGE>

 the Premises. In the event that Tenant exercises its expansion option(s)
 pursuant to this Paragraph 30, the Expansion Space thereby added to the
 Premises shall become a part of the Premises for all purposes of this Lease,
 and any reference to the term "Premises" shall be deemed to refer to and
 include any such Expansion Space, except as otherwise expressly provided
 otherwise in this Lease.

<TABLE>
<CAPTION>
                                                                              (iv)
                                                      (iii)                 Base Rent
                                                 Period, based on           when such
                                                 anniversaries of             Space
                                                Commencement Date,           becomes
        (i)                 (ii)                within which Space           part of
       Space                                      becomes part                 the
       Called               Floor                of the Premises             Premises
-------------------  -------------------  ------------------------------ -------------------
<S>                  <C>                   <C>                            <C>
"First                    32nd floor        Six months before to             95% of
 Expansion              25,000 square       six months after 5th [2002]      "Market
 Space"                     feet            anniversary                      Rate"

 "Second                  38th floor        Six months before to             95% of
  Expansion             25,000 square       six months after 10th            "Market
  Space"                    feet            [2007] anniversary               Rate"
 </TABLE>

          B.   Tenant's options to expand shall be exercised as follows: On each
occasion, Landlord shall give Tenant notice of each particular Expansion Space,
the dates on which such spaces will be tendered to Tenant (the "Specification
Notice"), and the rent for such Expansion Space, not less than fifteen (15)
months prior to the earliest date stated in the Specification Notice for
delivery of any such Expansion Space (the "Availability Date"). Tenant shall
deliver a non-binding written notice to Landlord of its intent to exercise its
option to expand not less than thirteen (13) months prior to the Availability
Date of the Expansion Space (the "Option Notice"). If Tenant does not agree to
the rent specified in the Specification Notice, Tenant shall state in its Option
Notice that is desires the Market Rate to be calculated pursuant to Paragraph
30.G. Thereafter, the Market Rate for the particular Expansion Space will be so
calculated. Such calculation shall reflect the Market Rate that would be payable
per annum for a term commencing on the first day of the term for the particular
Expansion Space with respect to which the calculation is being made, provided
that such calculations shall be final and shall not be recalculated at the
actual commencement of such Expansion Space term (if any). If Tenant fails to
give its non-binding written notice of its intent to exercise its option to
expand when due as hereinabove provided, Tenant will be deemed to have waived
such option to expand.

                                      -40-
<PAGE>

          If Tenant exercises its expansion option,  Landlord shall deliver
possession of each particular Expansion Space to Tenant within a period
extending six (6) months prior to, until six (6) months after, the Availability
Date contained in the Specification Notice (the "Delivery Window").  Landlord
shall use reasonable efforts to deliver the Expansion Space to Tenant within the
Delivery Window and Landlord shall take all commercially reasonable actions to
remove holdover tenants from the Expansion Space.  Landlord acknowledges that
remedies at law will not be adequate for the damages Tenant will incur for a
failure by Landlord to deliver the Expansion Space within the Delivery Window.
Therefore, if Landlord fails to deliver the Expansion Space within the Delivery
Window, Tenant may pursue an action for specific performance.  In addition,
Landlord shall have the right, by notice to Tenant from time to time at least
six  (6) months prior to the then current Availability Date for any floor of any
Expansion Space, to change the location of such floor, provided that if the
floor or floors being replaced were to be contiguous to the Premises when added
to the Premises, the replacement floor or floors so designated must also be
contiguous to the Premises when added to the Premises.  Tenant's right to add
floors pursuant to these subparagraphs 30.A. and 30.B. shall be exercised in
full floor increments.

          C.   Each Expansion Space (or part thereof) shall become part of the
Premises and, except as provided in Paragraph 30.B., Tenant's rental obligation
for such Expansion Space (or part thereof) shall commence upon its delivery to
Tenant in accordance with Paragraphs 30.A. and 30.B.

          D.   Notwithstanding anything to the contrary contained herein, (i) if
Tenant exercises its first Contraction Option set forth in Paragraph 31 (i.e.
year 2000), Landlord may designate the Contraction Space set forth in the 2000
Contraction Option as the First Optional Expansion Space; and (ii) if Tenant
exercises its second Contraction Option set forth in Paragraph 31 (i.e. year
2005), Landlord may designate the Contraction Space set forth in such 2005
Contraction Option as the Second Optional Expansion Space. Landlord shall not
lease space of less than 3,000 RSF on any floor which is subject to any of
Tenant's expansion options without the prior written consent of Tenant, which
consent may be withheld in Tenant's sole discretion.

          E.   Tenant's notice of exercise of an option for Optional Expansion
Space or notice of exercise of any other rights or options granted pursuant to
Paragraphs 31, 32, 34 and 35 of this Lease shall be effective only if at the
time of service of such notice of exercise the following conditions (the
"Expansion Conditions") shall be satisfied:

          (1)  Landlord shall not have notified Tenant that Tenant is in default
     in the performance of any of the monetary or material non-monetary terms,
     covenants, and conditions contained in this Lease which default has not
     been cured;

          (2)  This Lease shall not have been terminated and shall be in full
     force and effect; and

          (3)  There shall not have been any assignment of Tenant's interest in
     this Lease except as provided in Paragraph 30.H.

                                      -41-
<PAGE>

          F.   The Base Rent for the First Expansion Space and Second Expansion
Space (as the case may be) shall be at a rate equal to 95% of the Market Rate
(defined hereinafter) for such space. For purposes of this Paragraph 30, "Market
                                                                          ------
Rate" shall mean the fair net rental per annum (which shall be net of all Taxes
----
and Operating Expenses) for a lease (but not a sublease) by a new tenant for
"comparable space" (hereinafter defined) for a period commencing when the fair
net rental being determined would first be payable, assuming no rent abatements
of any kind per rentable square foot, for a term equal to the number of years
remaining in the Term (including any Extension Term, with respect to which
Tenant has delivered its final binding written notice pursuant to Paragraph 34).
The calculation of Market Rate shall be calculated on a net present value basis
and shall take into account (and the fair net rental shall be decreased by the
present value of any then market brokers' commission and of any then market
tenant improvement, free rent other concession which would be available to a new
tenant, and shall also take into account (and the fair net rental shall be
increased by) the present value of the cost of any actual brokers' commission or
actual tenant improvement, free rent or other concession, if any, agreed by the
Landlord and Tenant to be payable or to be granted to Tenant in connection with
the particular expansion option with respect to which Tenant has given its non-
binding notice. The calculation of Market Rate shall also be based on the
assumption that there will be no financial escalation of Rent or stepping of
Rent or similar increases over time other than the 2.5% annual increase to Base
Rent provided for in Paragraph 4. The calculation of Market Rate shall also take
into account that Tenant pays Tenant's Proportionate Share of the Operating
Costs and Taxes in each fiscal year. As used herein, the term "comparable space"
means similar space in office buildings in the central business district of
Chicago where the Building is located, which are comparable to the Building in
reputation, quality, age, size, location, and level and quality of services
provided, and which have similar occupancy of the Building, but excluding those
leases where tenants have an equity interest in the building.

          G.   For purposes of Paragraphs 30 and 34 of this Lease "Market
Rate" shall be determined as follows:

          (1)  On or before five (5) days after the time at which Tenant must
     provide the Landlord with its non-binding written notice under this Lease
     of its intent to exercise any of its rights to: (i) expand the Premises
     under this Paragraph 30 or, (ii) extend the Term of this Lease under
     Paragraph 34, Landlord and Tenant shall commence negotiations to agree upon
     the Market Rate (to be multiplied by the RSF in the Premises) applicable
     thereto. If the Landlord and Tenant are unable to reach agreement on the
     Market Rate within twenty-one (21) days after the date negotiations
     commenced, then the Market Rate shall be determined in accordance with
     Paragraph 30.G.(2) below.

          (2)  If the Landlord and Tenant are unable to reach agreement on the
     Market Rate within said twenty-one (21) day period, then within seven (7)
     days, the Landlord and Tenant shall each simultaneously submit to each
     other in a sealed envelope its good faith estimate of the Market Rate
     (each, a "Good Faith Estimate"). If the higher of such estimates is not
     more than one hundred five percent (105%) of the lower of such estimates
     then the Market Rate shall be the average of the two estimates and shall be
     final and binding on Landlord and Tenant and Tenant's Option Notice shall
     become binding upon Tenant. Otherwise, within five (5) days after the
     expiration of such seven (7) day period Tenant may submit the question to
     arbitration in accordance with Paragraph 30.G.(3) below.

          (3)  If the Landlord and Tenant are unable to agree upon the Market
     Rate by exchange of Good Faith Estimates, then Tenant may, by written
     notice to Landlord within five (5) days after the exchange of Good Faith
     Estimates pursuant to Paragraph 30.G.(2) above, request to resolve the
     dispute by arbitration, whereupon Tenant's Option Notice shall become
     binding upon Tenant. If Tenant does not provide such notice within the

                                      -42-
<PAGE>

     aforementioned five (5) days, Tenant will be deemed to have waived its
     option to expand under this Paragraph 30 or its option to extend the Term
     of this Lease under Paragraph 34, as applicable. Within seven (7) days
     after the receipt of such request, the parties shall select, as an
     arbitrator, a mutually acceptable independent MAI appraiser with experience
     in real estate activities, including at least five (5) years experience in
     appraising office space in the central business district of the City of
     Chicago (a "Qualified Appraiser"). If the parties cannot agree on a
                 -------------------
     Qualified Appraiser, then within a second period of seven (7) days, each
     shall elect a Qualified Appraiser and within ten (10) days thereafter the
     two appointed Qualified Appraisers shall select a third Qualified Appraiser
     and the third Qualified Appraiser shall be the arbitrator and shall
     determine the Market Rate. If one party shall fail to make such appointment
     within said second seven (7) day period, then the Qualified Appraiser
     chosen by the other party shall be the sole arbitrator.

          (4)  Once the arbitrator has been selected as provided in Paragraph
     30.G.(3) above, then, as soon thereafter as practicable but in any case
     within twenty-one (21) days, the arbitrator shall select one of the two
     Good Faith Estimates of Market Rate previously submitted by the Landlord
     and Tenant in accordance with 30.G.(2) above, which shall be the one that
     is closer to the fair market net rental value as determined by the
     arbitrator. The value so selected shall be the Market Rate. The decision of
     the arbitrator as to the Market Rate shall be submitted in writing to, and
     be final and binding on, the Landlord and Tenant. If the arbitrator
     believes that expert advice would materially assist him, he may retain one
     or more qualified persons, including but not limited to, legal counsel,
     brokers, architects or engineers, to provide such expert advice. The party
     whose estimate is not chosen by the arbitrator shall pay the costs of the
     arbitrator and of any experts retained by the arbitrator. Any fees of any
     counsel or expert engaged directly by the Landlord or Tenant, however,
     shall be borne by the party obtaining such counsel or expert.

          H.   The provisions of this Paragraph 30 and Paragraphs 31, 32 and 34,
and 35 shall apply only to Tenant, and shall not inure to the benefit of any
assignee of Tenant other than (i) any party resulting from a merger or
consolidation with Tenant so long as Tenant or an Affiliate is the dominant and
controlling party after such merger, (ii) any party succeeding to the business
and assets of Tenant, or (iii) any Affiliate of Tenant.

          I.   Any space added to the Premises pursuant to this Paragraph 30
shall be delivered by Landlord to Tenant in broom clean condition, but otherwise
as is, and Landlord shall have no obligation to contribute to the cost of any
construction or remodeling by Tenant.

          J.   Promptly after Tenant's exercise of any expansion option,
Landlord shall prepare an amendment to the Lease, in a form reasonably
satisfactory to Landlord and Tenant, to reflect the increase to the size of the
Premises and Tenant's Proportionate Share and any other appropriate terms, due
to the exercise of such expansion option. Tenant shall execute and return such
an amendment to the Lease within fifteen (15) days after its submission to
Tenant.

     31.  CONTRACTION OPTION.  Tenant shall, provided that all the Expansion
          ------------------
Conditions are then satisfied, have the option (the "Contraction Option") to
                                                     ------------------
exclude from the Premises an area of one full floor of Premises designated by
Tenant as hereinafter provided, which contraction will be effective as of
February 28, 2000, 2005, and 2010 (the "Contraction Date"). Space designated by
                                        ----------------
Tenant to be excluded from the Premises (the "Contraction Space") must be at a
                                              -----------------
non-contiguous floor or the upper [or lower] end of the largest contiguous block
of space then leased by Tenant.

                                      -43-
<PAGE>

The Contraction Option shall be exercised, time being of the essence, by notice
given by Tenant to Landlord, on or before twelve (12) months prior to any such
Contraction Date identifying the Contraction Space (the "Contraction Notice").
                                                         ------------------
Each time Tenant fails to timely deliver its Contraction Notice, Tenant will be
deemed to have waived such Contraction Option for the applicable Lease year. If
Tenant timely delivers its Contraction Notice, then as of the relevant
Contraction Date: (i) Tenant shall vacate the Contraction Space and surrender
possession thereof to Landlord in accordance with the requirements of this
Lease; (ii) the Rentable Area of the Premises shall be reduced by the Rentable
Area of the Contraction Space so surrendered; and (iii) Tenant's Proportionate
Share shall be reduced by a percentage derived by dividing the Rentable Area of
the Contraction Space surrendered by the Rentable Area of the Office Portion of
the Building. If Tenant fails to completely vacate the Contraction Space and
surrender possession thereof to Landlord in accordance with Paragraph 17 of the
Lease on or before the Contraction Date, such failure shall be treated as a
holding over by Tenant, and Landlord shall be entitled to all of its remedies
thereof pursuant to Paragraph 18 of this Lease. Notwithstanding any such
vacation and surrender, Tenant shall remain liable for the payment to Landlord
of all rent and other sums due or accrued, and for the performance and keeping
of all the covenants, agreements and obligations under this Lease to be
performed, paid and kept by Tenant with respect to the Contraction Space prior
to the Contraction Date. Promptly after Tenant's exercise of its Contraction
Option, Landlord shall prepare an amendment to the Lease in a form reasonably
satisfactory to Landlord and Tenant to reflect the reduction to the size of the
Premises and Tenant's Proportionate Share and any other appropriate terms, due
to the return of the Contraction Space. Tenant shall execute and return such an
amendment to the Lease within fifteen (15) days after its submission to Tenant.

     32.  RIGHT OF FIRST REFUSAL. Provided Tenant (including any Affiliate or
          ----------------------
Successor Entity) occupies at least 400,000 RSF in the Building and is not in
default hereunder (beyond any applicable cure period), subject to Paragraph
32.B. below, and subject to any expansion, renewal, first offer, and first
refusal options of any current tenant(s) in the Building (individually, the
"Prior Tenant") during the Term of this Lease, Tenant shall, provided all
 ------------
Expansion Conditions are then satisfied, have and is hereby granted a right of
first refusal on any space in the Building of 5,000 RSF or more, that is not
originally demised to Tenant under this Lease (collectively, the "Refusal
                                                                  -------
Space"), which right shall be exercised in accordance with the procedures set
-----
forth in Paragraph 32.A. below.

          A.   If at any time during the Term of this Lease any Refusal Space
becomes available for lease to anyone other than a Prior Tenant, Landlord shall
give written notice thereof to Tenant ("Landlord's Refusal Notice"). Landlord's
                                        -------------------------
Refusal Notice must be given not less than six (6) months nor more than twelve
(12) months in advance of such availability and shall contain a summary of the
terms upon which Landlord intends to offer the Refusal Space for lease to the
market (the "Third Party Lease"). Landlord's Refusal Notice shall specifically
indicate the monthly payment stream (the "Monthly Payment"). The Monthly Payment
is a level monthly payment over the term of the Third Party Lease which, when
discounted at a monthly equivalent rate equal to a ten percent (10%) annual
rate, for the term of the Third Party Lease, equals the same net present value
as the economic terms (including, but not limited to, the net rental rate, free
rent period, tenant improvement allowances and leasing commissions) of the Third
Party Lease. Such Monthly Payment shall be the monthly rental rate for the
Refusal Space. Tenant shall notify Landlord in writing within fifteen (15) days
of receipt of Landlord's Refusal Notice whether it desires to lease the Refusal
Space on the terms set forth in Landlord's Refusal Notice; and failure to notify
Landlord within said fifteen (15) day period shall be deemed a refusal by
Tenant. After any such refusal or deemed refusal, Tenant shall have no further
rights to such Refusal Space and Landlord shall be free to lease such space to
any person or entity for any term, subject to Tenant's other options set forth
in this Lease and subject to the following conditions:

                                      -44-
<PAGE>

               (i)       The net present value as of the proposed commencement
     date of the Third Party Lease expressed as a single dollar figure,
     discounted using a rate of ten percent (10%) per annum, of all rent (other
     than such tenant's proportionate share of operating expenses and taxes) of
     whatever nature or however denominated for the term of the Third Party
     Lease less such net present value of all other proposed economic terms of
     the Third Party Lease shall not be less than ninety-five percent (95%) of
     the comparable amount determined by using the economic terms set forth in
     the Landlord's Refusal Notice for the space in question;

               (ii)      The Third Party Lease must be executed within six (6)
     months after the date of the Landlord's Refusal Notice; and

               (iii)     If a Third Party Lease does not meet the foregoing
     conditions, then Landlord shall not enter into the Third Party Lease until
     Landlord again complies with the provisions of this Paragraph 32 by
     delivering a new Landlord's Refusal Notice to Tenant and Tenant does not
     exercise its right of first refusal to lease such space on the terms and
     conditions set forth in the second Landlord's Refusal Notice within the
     applicable time periods.

Upon the expiration of the Third Party Lease, Tenant shall again have a right of
first refusal on the terms set forth in this Paragraph 32 with respect to the
space covered thereby.

          B.   If Tenant exercises its right of first refusal with respect to
such Refusal Space, such space shall be added to the Premises subject to the
following:

               (i)       If Tenant exercises its right of first refusal for a
     Refusal Space within the first ten (10) Calendar Years of the Term of the
     Lease, such Refusal Space shall be added to the Premises for the remaining
     Term of the Lease (including any exercised Extension Term(s)) on (i) all of
     the terms, covenants and conditions specified in Landlord's Refusal Notice
     (including, but not limited to, the Monthly Payment), and (ii) the terms,
     covenants and conditions of this Lease to the extent that such terms,
     covenants and conditions of this Lease do not conflict with Landlord's
     Refusal Notice;

               (ii)      If Tenant exercises its right of first refusal for a
     Refusal Space after the first ten (10) Calendar Years of the Term of the
     Lease, and such Refusal Space is less than 50,000 RSF, then such Refusal
     Space shall be added to the Premises for the remaining Term of the Lease
     (including any exercised Extension Term(s)) on (i) all of the terms,
     covenants and conditions specified in Landlord's Refusal Notice (including,
     but not limited to, the Monthly Payment), and (ii) the terms, covenants and
     conditions of this Lease to the extent that such terms, covenants and
     conditions of this Lease do not conflict with Landlord's Refusal Notice;

               (iii)     If Tenant exercises its right of first refusal for a
     Refusal Space after the first ten (10) Calendar Years of the Term of the
     Lease, and such Refusal Space is greater than 50,000 RSF, then such Refusal
     Space shall be added to the Premises for the term indicated in the
     Landlord's Refusal Notice, up to a maximum term of ten (10) years, on (i)
     all of the terms, covenants and conditions specified in Landlord's Refusal
     Notice (including, but not limited to, the Monthly Payment), and (ii) the
     terms, covenants and conditions of this Lease to the extent that such
     terms, covenants and conditions of this Lease do not conflict with
     Landlord's Refusal Notice.

                                      -45-
<PAGE>

provided, however, that notwithstanding anything contained herein to the
contrary during the Extension Terms, if any, rent and all other economic terms
applicable to any Refusal Space shall be adjusted in the manner provided in
Paragraph 34 hereof, and the rent and other economic terms described in
Landlord's Refusal Notice shall not apply in any Extension Term. Any Refusal
Space added to the Premises pursuant to this Paragraph 32.B. shall become a part
of the Premises for all purposes of this Lease, and any reference in this Lease
to the term "Premises" shall be deemed to refer to and include such portion of
the Refusal Space, except as expressly provided otherwise in this Lease.

          C.   Promptly after Tenant's exercise of its right of first refusal
pursuant to this Paragraph 32., Landlord shall prepare an amendment to the
Lease, in a form reasonably satisfactory to Landlord and Tenant, to reflect
changes in the size of the Premises, Base Rent, Tenant's Proportionate Share and
any other appropriate terms, due to the addition of the Refusal Space. Tenant
shall execute and return such an amendment to the Lease within fifteen (15) days
after its submission to Tenant.

     33.  LIMITATIONS ON LIABILITY; CONFIDENTIALITY..
          -----------------------------------------

          It is expressly understood and agreed by Tenant that none of
Landlord's covenants, undertakings or agreements are made or intended as
personal covenants, undertakings or agreements by Landlord, or its
beneficiaries, and any liability for damage or breach or nonperformance by
Landlord shall be collectible only out of Landlord's interest in the Building
and Land, if any, and no personal liability is assumed by, nor at any time may
be asserted against Landlord, its beneficiaries or any of their heirs, legal
representatives, successors and assigns, all such liabilities, if any, being
expressly waived and released by Tenant.

          Landlord further agrees, subject to the terms and provisions below,
and except as specifically set forth herein, to keep confidential any non-public
financial information of Tenant or its shareholders disclosed to Landlord under
the provisions of this Lease; provided, however, that nothing herein shall
restrict or prohibit disclosure of any such information: (a) that was or becomes
generally available to the public other than as a result of disclosure by
Landlord; (b) that was or becomes available on a non-confidential basis from a
source other than Tenant (provided that such source was not bound by a
confidentiality agreement with Tenant known to Landlord after reasonable
inquiries, if any, which a reasonable person under the circumstances would have
made); (c) to the extent required by statute, rule, regulation, law,
governmental authority or judicial process; (d) to any of the following: (i) any
entity which controls, is controlled by or is under common control with
Landlord; (ii) any successor of Landlord; and/or (iii) any actual or potential
purchaser, assignee or transferee of all or any portion of the Building; (e) in
connection with Landlord's administration of the Lease, to any of its examiners,
accountants, attorneys, consultants, appraisers, auditors or agents, to the
extent reasonably required; or (f) to any other person or entity to the extent
reasonably required in connection with any litigation, or proceeding to enforce
remedies under this Lease. Landlord shall require that those persons and
entities to whom disclosure is made pursuant to Paragraph 33(d) and (e), agree
                                                ---------------     ---
to be bound by the provisions of this Paragraph 33. In the event disclosure is
                                      ------------
required to be made pursuant to Paragraph 33(c), Landlord shall give Tenant
                                ---------------
notice thereof as promptly as practicable under the circumstances and Tenant
shall have the right to seek an appropriate protective order (the
"Confidentiality Requirements"). The provisions of this

                                      -46-
<PAGE>

Paragraph 33 shall supersede in their entirety all prior agreements and
------------
understandings concerning confidentiality or disclosure of information entered
into by Landlord and Tenant (or a parent, subsidiary of affiliate of either or
both of the foregoing) with respect to the matters set forth herein.

     34.  TENANT'S OPTIONS TO EXTEND.   Tenant shall, provided that all of the
          --------------------------
Expansion Conditions are then satisfied, have the right to extend the term of
this Lease for four additional periods of five (5) years each (each such period
is called an "Extension Term"). Each Extension Term shall be upon the same
              --------------
terms, covenants and conditions contained in this Lease, except the amount of
the annual Base Rent payable during any Extension Term, and any reference in the
Lease to the "Term" of the Lease shall be deemed to include any Extension Term
and apply thereto, unless it is expressly provided otherwise. Tenant shall have
no extension option beyond the aforesaid four consecutive five year extension
options. Any termination of this Lease during the initial Term of this Lease
shall terminate all rights under this Paragraph 34.

          A.   The Base Rent during an Extension Term for any space then
constituting a portion of the Premises (including, without limitation, any
Expansion Space) shall be at a rate equal to 95% of the "Market Rate". For
purposes of this Paragraph 34, "Market Rate" shall mean the fair net rental per
                                -----------
annum (which shall be net of all Taxes and Operating Expenses) for a period
commencing when the fair net rental being determined would first be payable,
assuming no rent abatements of any kind, per rentable square foot for an
existing tenant entering into any renewal lease for "comparable space"
(hereinafter defined), for a term equal to the Extension Term, but excluding any
renewal by an existing tenant at a rent agreed to at an earlier date pursuant to
a tenant's renewal option. The calculation of Market Rate shall be calculated
on a net present value basis and shall take into account (and the fair net
rental shall be increased by) the present value of the cost of any actual
brokers' commission or actual tenant improvement, free rent or other concession,
if any, agreed by the Landlord and Tenant to be payable or to be granted to
Tenant in connection with the particular extension option with respect to which
Tenant has given its non-binding notice). The calculation of Market Rate shall
also be based on the assumption that there will be no financial escalation of
Rent or stepping of Rent or similar increases over time. The calculation of
Market Rate shall also take into account that Tenant pays Tenant's Proportionate
Share of the Operating Costs and Taxes in each fiscal year. As used herein, the
term "comparable space" means similar size space in office buildings in the
central business district of Chicago where the Building is located, which are
comparable to the Building in reputation, quality, age, size, location, and
level and quality of services provided, and which have similar occupancy of the
Building, but excluding those leases where tenants have an equity interest in
the building.

          B.   Each option to extend shall be exercised by Tenant giving non-
binding notice to Landlord not later than eighteen (18) months prior to the end
of the initial Term (or 18 months prior to the end of the first, second, or
third extensions thereof, as the case may be), to extend the Term of this Lease
(the "Extension Notice"). Thereafter, the Market Rate for the particular
Extension Term shall be calculated pursuant to Paragraph 30.G. Such calculation
shall reflect the Market Rate that would be payable per annum for a term
commencing on the first day of the particular Extension Term with respect to
which the calculation is being made, provided that such recalculation shall be
final and shall not be recalculated at the actual commencement of such Extension
Term. If Tenant fails to timely give the Extension Notice, Tenant will be deemed
to have waived such option to extend. If Tenant fails to exercise any particular
option to extend set forth herein, then all subsequent options to extend the
Term shall expire.

     35.  RIGHT OF FIRST OFFER TO PURCHASE.
          --------------------------------

                                      -47-
<PAGE>

          A.   Right of First Offer.  Subject to and upon the terms and
               --------------------
conditions hereinafter set forth, Landlord hereby grants to Tenant the right of
first offer (herein sometimes called the "Right of First Offer") during the Term
                                          --------------------
(including any Extension Term) to purchase the Building and Land, or any portion
thereof or interest therein (herein referred to as the "Offered Property"), in
                                                        ----------------
the event Landlord elects, at any time during the Lease Term, to offer the
Offered Property for sale.  If, during the Lease Term, Landlord elects to offer
the Offered Property for Sale,  Landlord shall give written notice ("Notice of
                                                                     ---------
Offer") to Tenant setting forth the cash price at which Landlord intends to
-----
offer the Offered Property for sale, together with the other material terms and
conditions of such offer (herein called the "Offer").  Tenant shall have the
                                             -----
right, at its option, exercisable as hereinafter provided, to purchase the
Offered Property for the price and on the same terms and conditions set forth in
the Offer.

          B.   Exercise.  Provided that all the Expansion Conditions are then
               --------
satisfied, the Right of First Offer shall be exercised, if at all, by Tenant
giving written notice of exercise thereof (a "First Offer Notice") to Landlord
                                              ------------------
within 30 calendar days (the "First Offer Notice Period") after receipt by
                              -------------------------
Tenant of the Notice of Offer and pursuant to Paragraph 35.A. If Tenant provides
Landlord with a First Offer Notice, Tenant shall have three (3) months to close
under the terms of the Offer. If Tenant fails to close within such period, then
Tenant's Right of First Offer shall terminate.

          C.   Non-Exercise.  In the event Tenant does not timely exercise its
               ------------
Right of First Offer with respect to any Notice of Offer, Landlord shall have
six (6) months to market the Offered Property covered by the subject Offer to
any third party who is willing to purchase the Offered Property in accordance
with such Offer. If no contract is executed within said six (6) month period,
Tenant's Right of First Offer with respect to the Offered Property shall be
reinstated. Should Landlord materially change the economic or financial terms of
the Offer presented to Tenant, or enter into a contract or contract amendment
which materially changes the economic or financial terms of the Offer presented
to Tenant, then such modified or amended Offer or contract, as the case may be,
shall constitute a new Offer hereunder and Tenant's Right of First Offer shall
apply thereto, obligating Landlord to present such new Offer to Tenant and
entitling Tenant the right to exercise the Right of First Offer as to such new
Offer in the manner hereinbefore provided. For the purposes of this Paragraph
35.C., a "material" change in the economic terms of the Offer shall mean a
change in the total economic terms of the Offer of greater than or equal to 3%.
In the event of any sale to a third party in accordance with the requirements of
this Paragraph 35, upon the closing of such purchase this Right of First Offer
shall be deemed to automatically expire with respect to the Offered Property and
Tenant, at Landlord's request, shall promptly execute and deliver to Landlord an
instrument releasing and quitclaiming any and all interest Tenant would
otherwise have under this Paragraph 35 to the purchaser of the Offered Property.

          D.   Third Party Offers.  Any offer made by a third party to Landlord
               ------------------
for the purchase of the Offered Property, other than in lieu of condemnation,
shall give Tenant the same rights under this Paragraph 35 as if such offer were
an offer made by Landlord for the sale of the Offered Property.

          E.   Exceptions to Right of First Offer. Tenant's Right of First Offer
               ----------------------------------
shall not apply to: (a) any Offered Property acquired by a third party in a
condemnation proceeding or a conveyance in lieu of condemnation; (b) any
conveyance resulting from the foreclosure of a mortgage or other instrument
encumbering the Offered Property, or any deed (or transfer or other form of
conveyance or assignment) given or made in lieu of such foreclosure; (c) any
transfer by a partnership to any of its partners; (d) any transfer between or
among partners; (e) any transfer to an affiliate of Landlord. As used herein the
term "affiliate" means any equity holder of the transferring entity, any
corporation or entity owned or controlled, directly or indirectly, by the
transferring entity.

                                     -48-
<PAGE>

     36.  CONSENTS.  Whenever under any terms or provisions of this Lease
          --------
either party's consent or approval is required or requested or performance by
either party of any act or other matter or thing is to be to the satisfaction of
or acceptable to the other party, such consent or approval shall not be
unreasonably withheld or delayed and such party shall not be unreasonable in
withholding its satisfaction or acceptance, always excepting any instance where
it is provided that such party may act arbitrarily or at its discretion and any
instance in which specific standards for consent or approval are provided in
this Lease.

     37.  TAX CONSEQUENCE OFFSET.  Pursuant to the Contribution Agreement and
          ----------------------
the terms of that certain Amended and Restated Limited Liability Company
Agreement for 35 W. Wacker Venture L.L.C. (the "Venture Agreement"), dated of
even date hereof, Landlord has agreed to comply with the Transfer Prohibition
(as defined in the Venture Agreement) and to maintain a level of non-recourse
debt against the Building and the Land sufficient to avoid any adverse tax
consequences to Tenant throughout the Restrictive Period (as defined in the
Venture Agreement). Pursuant to Section 25 of the Venture Agreement, Landlord
has agreed to indemnify Tenant against (i) any violations of the Transfer
Prohibition and (ii) Landlord's failure to comply with the aforementioned debt
maintenance requirement.  In order to secure Landlord's  indemnity obligations
under Section 25 of the Venture Agreement, Landlord and Tenant hereby
acknowledge and agree that Tenant shall be permitted to offset against Rent
accruing under this Lease if Landlord fails to make any payments in respect of
amounts due under the indemnification provisions of Section 25 of the Venture
Agreement, an amount equal to the indemnification payments to have been made
under said Section 25.  Such offset shall be made against Rent next becoming due
under this Lease until the offset is fully exhausted.  Notwithstanding the
foregoing, such offset shall be limited to a maximum of $9,200,000.00.

     38.  FINANCIAL INFORMATION.  During each Calendar Year of the Term of this
          ---------------------
Lease, upon not less than thirty (30) nor more than sixty (60) days written
notice from Landlord to Tenant, Landlord and Landlord's lender may review
Tenant's audited financial statements for the then most recent Calendar Year (to
the extent available) at the Premises and under Tenant's supervision (the
"Financial Review"). Except as provided below, Landlord and Landlord's lender
shall not perform a Financial Review more than once per Calendar Year (the
"Annual Financial Review") during the Term hereof and Landlord and Landlord's
lender shall not be entitled to copies of such audited financial statements or
any supporting documentation. Each Annual Financial Review shall be subject to
the Confidentiality Requirements set forth in Paragraph 33 herein. In addition
to the Annual Financial Review, Landlord shall have a one time right to conduct
a Financial Review, subject to the Confidentiality Requirements, under each of
the following circumstances: (i) with the lead underwriter who is managing the
underwriting of securities to be offered in connection with the transfer of the
ownership interests in the Landlord or the Property to a real estate investment
trust or partnership controlled by a real estate investment trust pursuant to
the terms of the Venture Agreement; and (ii) following the expiration of the
Restrictive Period, with the purchaser or a representative of the purchaser in
connection with the sale of the Building after the Restrictive Period. If
Landlord foregoes its Annual Financial Review for any Calendar Year, Landlord
shall

                                     -49-
<PAGE>

also have the one time right in that Calendar Year to conduct a Financial
Review, subject to the Confidentiality Requirements, under either circumstance
(i) or circumstance (ii) above.

                                     -50-
<PAGE>

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

               LANDLORD:            35 W. WACKER VENTURE L.L.C.

                                    By:_________________________

                                    Name:_______________________

                                    Title:______________________

               TENANT:              LEO BURNETT COMPANY, INC., a
                                    Delaware corporation

                                    By:_________________________

                                    Name:_______________________

                                    Title:______________________

                                     -51-
<PAGE>

                                   EXHIBIT A

                      LEGAL DESCRIPTION OF REAL PROPERTY
                      ----------------------------------

     LOTS 1, 3 AND 4  IN THE LEO BURNETT RESUBDIVISION OF A TRACT OF LAND IN THE
EAST HALF OF THE SOUTHEAST QUARTER OF SECTION 9, TOWNSHIP 39 NORTH, RANGE 14,
EAST OF THE THIRD PRINCIPAL MERIDIAN, ACCORDING TO THE PLAT THEREOF RECORDED
MARCH 15, 1990 AS DOCUMENT NUMBER 90117214, IN COOK COUNTY, ILLINOIS.

P.I.N.:  LOT 1  17-09-426-030
                LOT 3  17-09-426-032
                LOT 4  17-09-426-033

(Common Street Address 35 W. Wacker Drive, Chicago, Illinois)
<PAGE>

                                   EXHIBIT B

                                    BR/RSF
                                      ||

 Lease Year    Effective       Lease      End Month   BR/RSF
 ----------    ---------    Anniversary   ---------   ------
                            -----------
--------------------------------------------------------------------------------
    1                            0           12     $14.55
--------------------------------------------------------------------------------
    2                            1           24     $14.91
--------------------------------------------------------------------------------
    3                            2           36     $15.29
--------------------------------------------------------------------------------
    4                            3           48     $15.67
--------------------------------------------------------------------------------
    5                            4           60     $16.06
--------------------------------------------------------------------------------
    6                            5           72     $16.46
--------------------------------------------------------------------------------
    7                            6           84     $16.87
--------------------------------------------------------------------------------
    8                            7           96     $17.30
--------------------------------------------------------------------------------
    9                            8          108     $17.73
--------------------------------------------------------------------------------
   10                            9          120     $18.17
--------------------------------------------------------------------------------
   11                           10          132     $18.63
--------------------------------------------------------------------------------
   12                           11          144     $19.09
--------------------------------------------------------------------------------
   13                           12          156     $19.57
--------------------------------------------------------------------------------
   14                           13          168     $20.06
--------------------------------------------------------------------------------
   15                           14          180     $20.56  End of Initial Term
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                                      ||
<PAGE>

                                   EXHIBIT C

                             35 WEST WACKER DRIVE
                               CHICAGO, ILLINOIS

                        BUILDING PERFORMANCE STANDARDS
<PAGE>

                                   EXHIBIT D

                             35 WEST WACKER DRIVE
                               CHICAGO, ILLINOIS

                              JANITORIAL SERVICES

I.   NIGHTLY - Monday through Friday (Holidays Excluded)

     A.   Dust mop, using a treated mop, all stone, ceramic tile, terrazzo and
          other types of unwaxed flooring.

     B.   Dust mop, using a treated mop, all vinyl, asbestos, asphalt, rubber
          and similar types of flooring. This includes removal of gum and other
          similar substances using a scraping device.

     C.   Vacuum all carpeted areas.

     D.   Dust mop all private and public stairways and vacuum if carpeted.

     E.   Hand dust and wipe clean with a chemically treated cloth all
          furniture, file cabinets, fixtures, window sills (do not disturb
          papers on desks).

     F.   Dust and sanitize, using a disinfectant solution, all telephones.

     G.   Remove finger marks from all painted surfaces near light switches,
          entrance doors, etc.

     H.   Remove all gum and foreign matter on sight.

     I.   Empty and clean all waste receptacles and remove waste paper and waste
          materials to a designated area.

     J.   Damp dust interiors of all waste disposal receptacles and wash as
          necessary.

     K.   Clean and sanitize, using a disinfectant solution, all water fountains
          and water coolers.

     L.   Spot mop floors for spillages, etc.

     M.   Empty and damp clean all ash trays and screen all sand urns.

     N.   Remove finger marks and dust doors of elevator hatchways.
<PAGE>

     O.   Clean all low ledges, shelves, bookcases, etc., that are in office
          spaces.

     P.   Upon completion of work, all slop sinks are to be thoroughly cleaned
          and cleaning equipment and supplies stored neatly in locations
          designated by Building Manager's Office.

     Q.   All cleaning operations shall be scheduled so that a minimum of lights
          are to be left on at all times.  Upon completion of cleaning, all
          lights are to be turned off.  All entrance doors are to be kept locked
          during the cleaning operation.

     R.   Sweep all steps, sidewalks and plazas.

     S.   Clean elevator cabs, including floors.

     T.   Sweep clean loading dock areas.

     U.   In building lobby, dust and wipe clean mail chutes, mail depository
          door glass, metal door knobs, kick plates, and directional signs.

II.  WEEKLY

     A.   Hand dust all door louvers and other ventilating louvers within reach.

     B.   Dust all baseboards.

     C.   Wipe clean all bright work.

     D.   Dust all chair rails.

     E.   Move and vacuum clean once a week underneath all furniture that can be
          moved.

     F.   In high traffic resilient tile areas, damp mop if necessary and apply
          spray buffing solution in a fine mist and buff with a synthetic pad.

     G.   Damp mop all non-carpeted private and public stairways.

     H.   Wipe clean all interior building metals.

     I.   Clean building directory glass.

     J.   Wash all glass entrance doors and side panels inside and out.

     K.   Hose down loading dock areas.
<PAGE>

     L.   Wash entrance lobby walls.

     M.   Sweep clean garage.

III. MONTHLY

     A.   Dust entrance fixtures and other fittings in public corridors. Replace
          bulbs with contractor supplies.

     B.   Shampoo common area and elevator carpeting. Thoroughly scrub resilient
          tile floors in all public areas.

     C.   When possible, sweep and hose down exterior walks, trucking areas and
          shipping platforms.

     D.   Scrub down loading dock area.

     E.   Dust all picture frames, charts and venetian blinds which are not
          reached in nightly cleaning.

IV.  QUARTERLY

     A.   Dust all vertical surfaces such as walls, partitions, doors and other
          surfaces not reached in nightly cleaning.

     B.   Dust exterior of lighting fixtures.

     C.   Dust all air-conditioning louvers, grills, etc.

     D.   Wash all baseboards.

     E.   Strip all resilient flooring using diluted stripping solution. Machine
          scrub floor using pad to remove all floor finish. Thoroughly rinse
          with clean water and apply two coats of floor finish.

     F.   Vacuum upholstered furniture.

V.   LAVATORIES

     A.   Nightly - Monday - Friday

          (1)  Clean, sanitize using disinfectant solution and polish all
               vitreous fixtures including toilet bowls, urinals and wash
               basins.
<PAGE>

          (2)  Clean and polish all chrome and stainless steel fittings.

          (3)  Clean and sanitize both sides of toilet seats.

          (4)  Clean and polish all glass and mirrors.

          (5)  Empty all containers and disposals and insert new liners where
               required.

          (6)  Wash and sanitize using a disinfectant solution, exteriors of all
               containers.

          (7)  Empty all sanitary containers and sanitize interiors using a
               disinfectant solution.

          (8)  Dust horizontal surfaces of all partitions.

          (9)  Spot clean all partitions and remove all graffiti.

          (10) Spot clean all walls, doors, light switches, etc.

          (11) Refill all dispensers to normal limits including napkins, soap,
               tissue, towels, etc.

          (12) Wet mop and sanitize tile floors.

          (13) Vacuum entire carpeted areas.

          (14) Remove all rubbish.

          (15) Wet mop tile floors.

     B.   BI-WEEKLY

          (1)  Wash partitions.

     C.   MONTHLY

          (1)  Wash partitions.

     D.   QUARTERLY

          (1)  Dust all HVAC grills and louvers.

          (2)  Wash ceramic tile walls.
<PAGE>

VI.  MISCELLANEOUS

     A.   Cleaning of computer rooms and kitchens will be the sole
          responsibility of the tenant.

     B.   Remove snow and ice from parking entrances, sidewalks and roadways
          servicing the property.

     C.   Sidewalk, entrances including dock and grounds to be kept clean of
          paper, leaves and debris.

     D.   Put out in lobby floor mats during inclement weather and clean floor
          mats as necessary.

     E.   Keep escalators, if any, in clean and polished condition.

     F.   Keep walls and ceiling clean.
<PAGE>

                                   EXHIBIT E

                             35 WEST WACKER DRIVE
                               CHICAGO, ILLINOIS

                             RULES AND REGULATIONS

     RULES AND REGULATIONS.  Tenant agrees to observe the rights reserved to
Landlord in the Lease and agrees, for itself, its employees, agents, clients,
costumers, invitees and guests, to comply with the following rules and
regulations with such reasonable modifications thereof and additions thereto as
Landlord may make, from time to time, for the Building.

     (a)  Except as provided in the Lease, any sign, lettering, picture, notice,
or advertisement installed within Tenant's Premises which is visible to the
public from within the Building shall be installed at Tenant's cost and in such
manner, character and style as Landlord may approve in writing such approval not
to be unreasonably withheld.

     (b)  Tenant may use the address of the Building as its business address for
any reasonable business purpose.

     (c)  Tenant, its customers, invitees, licensees, and guests shall not
obstruct sidewalks, entrances, passages, courts, corridors, vestibules, halls,
elevators and stairways in and about the Building.  Tenant shall not place
objects against glass partitions or doors or windows or adjacent to any open
common space which would be unsightly from the Building corridors or from the
exterior of the Building, and will promptly remove the same upon notice from
Landlord.

     (d)  Tenant shall not make excessive noises, cause disturbances, create
excessive vibrations, odors or noxious fumes or use or operate any electrical or
electronic devices or other devices that emit excessive sound waves or are
dangerous to other tenants and occupants of the Building or that would
materially interfere with the operation of any device or equipment or radio or
television broadcasting or reception from or within the Building or elsewhere,
and shall not place or install any projections, antennae, aerials or similar
devices outside of the Premises except as provided in the Lease.

     (e)  Tenant shall not make any room-to-room canvas to solicit business from
other tenants in the Building, and shall not exhibit, sell or offer to sell,
use, rent or exchange any item or services in or from the Premises unless
ordinarily embraced within the Tenant's use of the Premises as specified in its
value.

     (f)  Tenant shall not waste electricity or water and agrees to cooperate
fully with Landlord to assure the most effective operation of the Building's
heating and air-conditioning and shall refrain from attempting to adjust any
controls except for the thermostats within the Premises. Tenant shall keep
public corridor doors closed.
<PAGE>

     (g)  Door keys for doors in the Premises will be furnished at the
commencement of the Lease by Landlord.  Tenant shall not affix additional locks
on doors and shall purchase duplicate keys only from Landlord.  When the Lease
is terminated, Tenant shall return all keys to Landlord and will provide to
Landlord the means of opening any safes, cabinets or vaults left in the
Premises.

     (h) Tenant assumes full responsibility for protecting its space from theft,
robbery and pilferage.  Tenant's responsibility includes keeping doors locked
and other means of entry to the Premises closed and secured.

     (i)  Peddlers, solicitors and beggars shall be reported to the office of
the Building or as Landlord otherwise requests.

     (j)  Tenant shall neither install nor operate machinery or any mechanical
devices of a nature not directly related to Tenant's ordinary use of the
Premises without the written permission of the Landlord, which permission shall
not be unreasonably withheld.

     (k)  Tenant shall not:

          (1)  Use the Premises for lodging or for any immoral or illegal
               purposes;

          (2)  Use the Premises to engage in the manufacture or sale of any
               spirituous, fermented, intoxicating or alcoholic beverages;

          (3)  Use the Premises to engage in the manufacture or sale of, or
               permit the use of, any illegal drugs on the Premises.

     (l)  In no event shall any person bring into the Building inflammables such
as gasoline, kerosene, naphtha and benzene, or explosives or firearms or any
other article of intrinsically dangerous nature.  If for any reason of the
failure of Tenant to comply with the provisions of this paragraph, any insurance
premium payable by Landlord for all or any part of the Building shall at any
time be increased above normal insurance premiums for insurance not covering the
items aforesaid, Landlord shall notify Tenant and following a reasonable cure
period have the option to require Tenant to make payment for the whole of the
increased insurance premium within thirty (30) days after notice to Tenant.

     (m)  Tenant shall comply with all applicable federal, state and municipal
laws, ordinances and regulations and building rules, and shall not directly or
indirectly make any use of the Premises which may be prohibited thereby or which
shall be dangerous to person or property or shall increase the cost of insurance
or require additional insurance coverage.

     (n)  If Tenant desires signal, communication, alarm or other utility or
service connection installed or changed, the same shall be made at the expense
of Tenant, with reasonable approval and under direction of Landlord.
<PAGE>

     (o)  Bicycles shall not be permitted in the Building in other than
Landlord-designated locations.

     (p)  Tenant shall cooperate and participate in all reasonable security
programs affecting the Building.

     (q)  Tenant, its customers, invitees, licensees, and guests shall not
loiter, eat, drink, sit or lie in the lobby, plaza or other spaces in the
Building or the adjacent property owned by the landlord which are open to the
public.

     (r)  Tenant shall not, and Tenant shall not permit or suffer anyone to
allow any pets in the Premises.

     (s)  Tenants shall not use any draperies or other window coverings instead
of or in addition to the building standard window coverings designated and
approved by Landlord for exclusive use throughout the Building.

     (t)  Tenant, its customers, invitees, licensees, and guests shall not use
the freight or passenger elevators of the Building except in accordance with the
reasonable regulations for the use established by Landlord.

     (u)  In the event Landlord allows one or more tenants in the Building to do
any act prohibited herein, Landlord shall not be precluded from denying any
other tenant the right to do any such act.

     (v)  In the event of a conflict between the terms of these rules and
regulations and the terms of the Lease, the terms of the Lease shall control.<PAGE>

                                                                    Exhibit 10.4
================================================================================

                                     LEASE

                                    Between

                           BROADWAY 52ND ASSOCIATES

                                                                         Owner,

                                      and

                      D'ARCY MASIUS BENTON & BOWLES, INC.

                                                                         Tenant,

                                   Premises:

                         Portions of building known as
                    1675 Broadway and 225 West 52nd Street
                               New York, New York

                               Goldfarb & Fleece
                                345 Park Avenue
                              New York, New York

================================================================================
<PAGE>

<TABLE>
<CAPTION>
                               Table of Contents

                                                                                  Page
                                                                                  ----
<S>                                                                            <C>
Article   1 Demise, Premises, Term, Rents...................................        1
Article   2 Use and Occupancy...............................................        8
Article   3 Alterations.....................................................        8
Article   4 Ownership of Improvements.......................................       10
Article   5 Repairs.........................................................       11
Article   6 Compliance with Laws............................................       12
Article   7 Subordination, Attornment, Etc..................................       13
Article   8 Property Loss, Etc..............................................       17
Article   9 Destruction--Fire or Other Casualty.............................       17
Article  10 Eminent Domain..................................................       19
Article  11 Assignment and Subletting.......................................       20
Article  12 Owner's Initial Construction....................................       26
Article  13 Access to Demised Premises; Name of Building....................       26
Article  14 Vault Space.....................................................       28
Article  15 Certificate of Occupancy........................................       28
Article  16 Default.........................................................       29
Article  17 Remedies........................................................       30
Article  18 Damages.........................................................       31
Article  19 Fees and Expenses, Indemnity....................................       32
Article  20 Entire Agreement................................................       34
Article  21 End of Term.....................................................       34
Article  22 Quiet Enjoyment ...........,....................................       34
Article  23 Tax and Operating Payments......................................       35
Article  24 No Waiver.......................................................       41
Article  25 Mutual Waiver of Trial By Jury..................................       42
Article  26 Inability to Perform............................................       42
Article  27 Notices.........................................................       42
Article  28 Partnership Tenant..............................................       42
Article  29 Utilities and Services..........................................       43
Article  30 Captions........................................................       46
Article  31 Miscellaneous and Severability Provisions.......................       46
Article  32 Adjacent Excavation.............................................       48
Article  33 Building Rules..................................................       48
Article  34 Broker..........................................................       48
Article  35 Tenant's Access.................................................       49
Article  36 Arbitration, Etc................................................       49
Article  37 Option to Increase or Decrease Demised Premises.................       50
Article  38 Additional Space; Second Additional Space; and Third
  Additional Space..........................................................       51
Article  39 Options for Additional Space....................................       55
Article  40 Tenant's Renewal Options........................................       59
Article  41 Rights for Further Additional Spaces............................       63
Article  42 Parties Bound...................................................       66
Article  43 Memorandum of Lease.............................................       66
Article  44 Telecommunications Antenna......................................       66
Schedule A. Owner's Initial Construction....................................      A-1
</TABLE>
<PAGE>

<TABLE>
<CAPTION>
                                                                                    Page
                                                                                    ----
<S>                                                                                 <C>
Schedule B. Building Rules.....................................................     B-1
Schedule C. Cleaning Services, Etc.............................................     C-1
Schedule D.....................................................................     D-1
Schedule E. Schedule of Plans and Outline Specifications.......................     E-1
Schedule F. Land Demised in Ground and Development Rights Lease...............      F-1
Schedule G. Initial Option Spaces (Article 38).................................     G-1
</TABLE>
<PAGE>

     LEASE dated as of the 21/st/ day of October, 1987, between BROADWAY 52ND
ASSOCIATES, a New York partnership having its principal office at 345 Park
Avenue, Borough of Manhattan, City, County and State of New York 10154, as
landlord (referred to as "Owner"), and D'ARCY MASIUS BENTON & BOWLES, INC,. a
New York Corporation having its principal office at 909 Third Avenue, Borough of
Manhattan, City, County and State of New York 10022, as tenant (referred to as
"Tenant").

                             W I T N E S S E T H:

Owner and Tenant hereby covenant and agree as follows:

                                   ARTICLE 1

                         Demise, Premises, Term, Rents

     Section 1.01. Owner hereby leases to Tenant and Tenant hereby hires from
Owner the entire second (2nd), third (3rd), fourth (4th), fifth (5th), sixth
(6th), seventh (7th), eighth (8th), ninth (9th), tenth (10th), eleventh (11th),
twelfth (12th), thirteenth (13th), fourteenth (14th) and fifteenth (15th) floors
and that portion of Basement Level A which is indicated by outlining and
diagonal markings on the floor plan initialed by the parties and annexed hereto
and made a part hereof as Exhibit 1, in the building presently under
construction by Owner located on the northwest corner of Broadway and West 52nd
Street and to be known as 1675 Broadway and 225 West 52nd Street in the Borough
of Manhattan, City of New York (said building is referred to as the "Building",
and the Building, together with the plot of land upon which it stands and all
other land and development rights demised in the Ground and Development Rights
Lease referred to in Article 7 is referred to as the "Real Property"), at the
annual rental rate or rates set forth in Section 1.03, and upon and subject to
all of the terms, covenants and conditions contained in this Lease. The premises
leased to Tenant, together with all appurtenances, fixtures, improvements,
additions and other property attached thereto or installed therein at the
commencement of, or at any time during, the term of this Lease, other than
Tenant's Personal Property (as defined in Article 4), are referred to,
collectively, as the "Demised Premises" and that portion of Basement Level A
included in the Demised Premises is sometimes referred to as the "Basement
Space." The land demised in the Ground and Development Rights Lease is more
accurately described on Schedule F annexed hereto and made a part hereof. For
all purposes of this Lease the Building shall exclude the Theatre, as defined in
the Ground and Development Rights Lease.

     Section 1.02. A. The Demised Premises are leased for a term (referred to as
the "Demised Term") to commence on May 1, 1989 and to end on January 31, 2010
(subject to the provisions of subsection B of this Section 1.02). unless the
Demised Term shall sooner terminate or be extended pursuant to any of the terms,
covenants or conditions of this Lease or pursuant to law.

     B. Notwithstanding anything in subsection A of this Section 1.02 to the
contrary, if, on or prior to the date set forth in said subsection A for the
commencement of the Demised Term, a temporary or permanent Certificate (or
Certificates) of Occupancy covering the Demised Premises has not been issued by
the Department of Buildings of the City of New York, or Owner shall have failed
substantially to complete Owner's Initial Construction (as defined in Article
12), then: (a) the Demised Term shall not commence on the date set forth in said
subsection A but shall, instead, commence on a date, fixed by Owner in a notice
to Tenant, not sooner than twenty (20) days next following the date of the
giving of such notice, which notice shall state that (i) a temporary or
permanent Certificate (or Certificates) of Occupancy covering the Demised
Premises has been, or prior to the commencement date fixed in said notice is
expected to be, issued by the Department of Buildings of the City of New York
and (ii) Owner has, or prior to the commencement date fixed in said notice will
have, substantially completed Owner's Initial Construction, and (b) the Demised
Term shall end on the last day of the calendar month in which the day
immediately preceding the date which is nine (9) months next following the
twentieth (20th) anniversary date of the commencement of the Demised Term shall
occur (provided, however, in no event, shall the Demised Term end prior to
January 31, 2010) unless sooner terminated pursuant to any of the terms,
covenants or conditions of this Lease or pursuant to law; and (c) except as
aforesaid, neither the validity of this Lease nor the obligations of Tenant
under this Lease shall be affected thereby. If, by the date fixed in any such
notice, a temporary or permanent Certificate (or Certificates) of Occupancy
covering the Demised Premises has not been issued or Owner's Initial
Construction has not been substantially completed, such notice shall have no
force or effect and the Demised Term shall commence on a date fixed by Owner in
a further notice by Owner not sooner than twenty (20) days next following the
date of the giving of such further notice. In the event that Owner anticipates
that the
<PAGE>

                                       2

Commencement Date will be established pursuant to this subsection 1.02B,
then Owner agrees that, Owner shall deliver to Tenant a non-binding notice so
advising Tenant of the anticipated Commencement Date not less than sixty (60)
days prior to the date that the events set forth in subdivisions (i) and (ii)
above are to occur provided, however, there shall be no liability to Owner in
the event Owner fails to give such notice to Tenant or if the actual
Commencement Date is other than the date anticipated by Owner and set forth in
such non-binding notice. For purposes hereof, Owner's Initial Construction shall
be deemed substantially completed notwithstanding the fact that minor details of
construction, mechanical adjustment or decoration remain to be performed, which
such omissions do not materially interfere with Tenant's use of the Demised
Premises for the usual conduct of its business, provided, however, Owner's
Initial Construction shall not be deemed substantially completed unless Tenant
has reasonable means of access to the Demised Premises. The date upon which the
Demised Term shall commence pursuant to subsection A of this Section or pursuant
to this subsection B is referred to as the "Commencement Date", and the date
fixed pursuant to said subsection A or this subsection B as the date upon which
the Demised Term shall end is referred to as the "Expiration Date".

     C. Tenant waives any right to rescind this Lease under Section 223-a of the
New York Real Property Law or any successor statute of similar import then in
force and further waives the right to recover any damages which may result from
Owner's failure to deliver possession of the Demised Premises on the date set
forth in subsection A of this Section, or in any notice given pursuant to
subsection B of this Section, for the commencement of the Demised Term, except
as otherwise specifically set forth in Section 1.05.

     D. After the determination of the Commencement Date, Tenant agrees, upon
request of Owner, to execute, acknowledge and deliver to Owner an instrument,
in form reasonably satisfactory to Owner, setting forth said Commencement Date
and the Expiration Date.

     Section 1.03. A. (i) This Lease is made at the following annual rental
rates (referred to as "Fixed Rent"):

          Portion of Demised Term                      Fixed Rent
          -----------------------                      ----------

Commencement Date to last day of
 calendar month in which the day
 immediately preceding the date which is
 nine (9) months next following the 5th
 anniversary date of the Commencement
 Date shall occur (such period is referred
 to as the "1st Rent Period")................ Eight Million Three Hundred and
                                               Forty Four Thousand Nine Hundred
                                               and Fifty ($8,344,950.00) Dollars

Next Five (5) years of the Demised Term
 (such period is referred to as the "2nd
 Rent Period").............................. Ten Million Thirteen Thousand Nine
                                               Hundred and Forty
                                               ($10,013,940.00) Dollars

Next Five (5) years of the Demised Term
 (such period is referred to as the "3rd
 Rent Period").............................. Eleven Million Six Hundred Eighty
                                               Two Thousand Nine Hundred and
                                               Thirty ($11,682,930.00) Dollars

List Five (5) years of the Demised Term
 (such period is referred to as the "4th
 Rent Period").............................. Twelve Million Six Hundred Eighty
                                               Four Thousand Three Hundred and
                                               Twenty Four ($12,684,324.00)
                                               Dollars

(ii) The parties agree that the Fixed Rent is allocable to portions of the
Demised Premises as follows:

<TABLE>
<CAPTION>
                                            Allocations of Fixed Rent
                     ----------------------------------------------------------------------     Rentable       Tenant's Portionate
                     1st Rent Period    2nd Rent Period   3rd Rent Period   4th Rent Period    Square Feet             Share
                     ---------------    ---------------   ---------------   ---------------    -----------     -------------------
<S>                  <C>                <C>               <C>               <C>                <C>             <C>
Portion Basement
  Level A..............    $  38,900        $  46,680       $   54,460           $  59,128            3,112        21/100 (.21%)
                                                                                                                     percent
</TABLE>
<PAGE>

                                       3

<TABLE>
<CAPTION>
                                            Allocations of Fixed Rent
                     ----------------------------------------------------------------------     Rentable       Tenant's Portionate
                     1st Rent Period    2nd Rent Period   3rd Rent Period   4th Rent Period    Square Feet             Share
                     ---------------    ---------------   ---------------   ---------------    -----------     -------------------
<S>                  <C>                <C>               <C>               <C>                <C>             <C>
Entire Second (2nd)
  Floor................      518,600          622,320          726,040             788,272           20,744       Two and 75/100
                                                                                                                    (2.75%) percent

Entire Third (3rd)
  Floor................      528,525          634,230          739,935             803,358           21,141       Two and 80/100
                                                                                                                    (2.80%) percent

Entire Fourth (4th)
  Floor................      528,525          634,230          739,935             803,358           21,141       Two and 80/100
                                                                                                                    (2.80%) percent

Entire fifth (5th)
  Floor................      525,475          630,570          735,665             798,722           21,019       Two and 78/100
                                                                                                                    (2.78%) percent

Entire Sixth (6th)
  Floor................      525,475          630,570          735,665             798,722           21,019       Two and 78/100
                                                                                                                    (2.78%) percent

Entire Seventh (7th)
  Floor................      720,475          864,570        1,008,655           1,095,122           28,819       Three and 81/100
                                                                                                                    (3.81%) percent

Entire Eighth (8th)
  Floor................      699,275          839,130          978,985           1,062,898           27,971       Three and 70/100
                                                                                                                    (3.70%) percent

Entire Ninth (9th)
  Floor................      631,700          758,040          884,380             960,184           25,268       Three and 35/100
                                                                                                                    (3.35%) percent

Entire Tenth (10th)
  Floor................      623,875          748,650          873,425             948,290           24,955       Three and 30/100
                                                                                                                    (3.30%) percent

Entire Eleventh (11th)
  Floor................      600,825          720,990          841,155             913,254           24,033       Three and 18/100
                                                                                                                    (3.18%) percent

Entire Twelfth (12th)
  Floor................      600,825          720,990          841,155             913,254           24,033       Three and 18/100
                                                                                                                    (3.18%) percent

Entire Thirteenth (13th)
  Floor................      600,825          720,990          841,155             913,254           24,033       Three and 18/100
                                                                                                                    (3.18%) percent

Entire Fourteenth (14th)
  Floor................      600,825          720,990          841,155             913,254           24,033       Three and 18/100
                                                                                                                    (3.18%) percent

Entire Fifteen (15th)
  Floor................      600,825          720,990          841,155             913,254           24,033       Three and 18/100
                                                                                                                    (3.18%) percent
</TABLE>

     B. The Fixed Rent and any additional rent payable pursuant to the
provisions of this Lease shall be payable by Tenant to Owner at its office (or
at such other place as Owner may designate in a notice to Tenant) in lawful
money of the United States which shall be legal tender in payment of all debts
and dues, public and private, at the time of payment, or by Tenant's good check
drawn on a bank or trust company whose principal office is located in New York
City and which is a member of the New York Clearinghouse Association without
prior demand
<PAGE>

                                       4

therefor and without any offset or deduction whatsoever except as otherwise
specifically provided in this Lease. The Fixed Rent shall be payable in equal
monthly installments as follows:

          Portion of Demised Term            Monthly Installments
          -----------------------            --------------------

1st Rent Period.....................         Six Hundred Ninety-Five Thousand
                                             Four Hundred Twelve and 50/1000
                                             ($695,412.50) Dollars

2nd Rent Period.....................         Eight Hundred Thirty-Four Thousand
                                             Four Hundred Ninety-Five and 00/100
                                             ($834.495.00)Dollars

3rd Rent Period Nine................         Nine Hundred Seventy Three Thousand
                                             Five Hundred Seventy- Seven and
                                             50/100 ($973,577.50) Dollars

4th Rent Period.....................         One Million Fifty Seven Thousand
                                             Twenty-Seven and 00/100
                                             ($1,057,027) Dollars

     Each of such installments shall be payable in advance, on the first
(1st) day of each month during the Demised Term.

     C. In the even that the Commencement Date shall occur on a date other than
the first (1st) day of any calendar month. Tenant shall pay to Owner, on the
sixth (6th) month anniversary of the Commencement Date, a sum equal to Twenty
Three Thousand One Hundred Eighty and 42/100 ($23,180.42) Dollars, multiplied by
the number of calendar days in the period from the sixth (6th) month anniversary
of the Commencement Date to the last day of the month in which the sixth (6th)
month anniversary of the Commencement Date shall occur, both inclusive.

     D. Notwithstanding the foregoing provisions of this Section 1.03. Owner
agrees that Tenant shall be entitled to a rent holiday and not be required to
pay Fixed Rent for (i) any period prior to May 1, 1989 notwithstanding that any
Earlier Completion Date may occur prior to such date and (ii) the periods (a)
from the Commencement Date to including the date which is one (1) day prior to
the sixth (6th) month anniversary of the Commencement Date, (b) from the first
day of the first full calendar month of the second year of the Demised Term to
and including the middle of the next succeeding month and (c) from the first day
of the first full calendar month of the third year of the Demised Term to and
including the middle of the next succeeding month, but shall otherwise be
required to comply with all of the terms, covenants and conditions of this Lease
on Tenant's part to be observed or performed including, but not limited to, the
provisions of Article 23.

     Section 1.04. A. The parties recognize that Owner's Initial Construction
will be completed in stages, and, according1y, in the event the Commencement
Date occurs after May 1, 1989, it is the intention of the parties that Tenant
W11l take occupancy of various portions of the Demised Premises at different
times prior to the Commencement Date. Tenant agrees that, on or prior to April
1. 1988, Tenant shall give a notice to Owner advising Owner which portions of
the Demised Premises Tenant desires to occupy at or about the same time (such
portions of the Demised Premises which Tenant desires to occupy at or about the
same time are referred to, collectively, as an "Occupancy Unit") and setting
forth the sequence for completion of such Occupancy Units; in no event shall an
Occupancy Unit comprise more than three (3) floors of the Demised Premises
except one (1) Occupancy Unit may comprise not more than six (6) floors.
Notwithstanding anything to the contrary hereinbefore provided, at Owner's
option, exercisable by notice given to Tenant on or prior to January 5, 1989,
Owner shall have the right to place any Occupancy Unit comprising mote than
three (3) floors in any position of such sequence. Owner agrees that in
connection with Tenant's initial moves into the Building, Tenant shall have use
of the Building's passenger elevators through the Building lobby and Owner
agrees that no other tenant shall have the right to use such passenger elevators
to move into the Building at the same time as Tenant. Tenant agrees that its
moves into the Building shall only occur during hours other than 8 A.M, to 6
P.M. on business days, as hereinafter defined. Nothing contained in this
subsection shall be deemed to obligate Owner to complete Owner's Initial
Construction with respect to any one or more Occupancy Units by any fixed date
prior to the Commencement Date.

     B. Tenant shall have the right to use and occupy each Occupancy Unit on a
date (referred to, with respect to each such Occupancy Unit, as the Earlier
Completion Date") fixed by Owner in a notice to Tenant which date shall not be
sooner than twenty (20) days next following the date of the giving of such
notice, which notice shall
<PAGE>

                                       5

state that (i) a temporary or permanent Certificate (or Certificates) of
Occupancy covering such Occupancy Unit has been, or prior to the Earlier
Completion Date fixed in said notice is expected to be, issued by the Department
of Buildings of the City of New York and (ii) Owner has, or prior to the Earlier
Completion Date fixed in said notice will have, substantially completed Owner's
Initial Construction as it relates to such Occupancy Unit. If, by the date fixed
in any such notice, a temporary or permanent Certificate (or Certificates) of
Occupancy covering such Occupancy Unit has not been issued or Owner's Initial
Construction has not been substantially completed with respect to such Occupancy
Unit, such notice shall have no force or effect and the Earlier Completion Date
shall be the date fixed by Owner in a further notice by Owner not sooner than
twenty (20) days next following the date of the giving of such further notice.
Any such use or occupancy shall be deemed to be under all of the terms,
covenants and conditions of this Lease except as hereinafter provided in this
subsection. Whether or not Tenant occupies any such Occupancy Unit Tenant agrees
to pay Fixed Rent, and any increases therein pursuant to the provisions of
Article 23, for each such Occupancy Unit for the period from the Earlier
Completion Date with respect to such Occupancy Unit to the date immediately
preceding the Commencement Date, both dates inclusive, equitably apportioned on
the basis of the allocations of the Fixed Rent set forth in subsection
1.03.A.(ii). Fixed Rent for each such Occupancy Unit shall be payable at the end
of each month following the Earlier Completion Date with respect thereto until
the Commencement Date, and if the Commencement Date shall occur on a date other
than the first day of the month, shall be payable on the Commencement Date with
respect to the period from the first day of the month in which the Commencement
Date shall occur to the day immediately preceding the Commencement Date, both
days inclusive.

     C. In the event (i) the Commencement Date or the Earlier Completion Date
for any Occupancy Unit shall not have occurred within sixty (60) days next
following the Earlier Completion Date fixed pursuant to the provisions of
subsection B of this Section 1.04 for the Occupancy Unit prior in sequence
thereto, and (ii) the failure of the Commencement Date or such later Earlier
Completion Date, as the case may be, to occur within such sixty (60) day period
shall not be caused by Tenant or its employees, agents or contractors, then, in
those events. Tenant shall, from and after the expiration of such sixty (60) day
period have no further obligation to pay Fixed Rent with respect to any
Occupancy Unit until the sooner occurring of the Commencement Date or such later
Earlier Completion Date.

     Section 1.05. In the event the Commencement Date occurs later than May 1,
1990, as said date may be extended by the provisions of this Section 1.05 (said
date, as it may be extended, is referred to as the "Outside Date"), then Owner
shall pay to Tenant for the period commencing on the Outside Date and ending on
the day immediately preceding the Commencement Date (referred to as the "Delay
Period") a sum equal to the amount by which (a) the aggregate of (i) the fixed
rent (exclusive of the cost of electricity paid by Tenant or included as part of
such fixed rent) and any additional rents for escalations paid by Tenant, under
any extension of Tenant's existing leases for its premises at 909 Third Avenue,
New York, New York ("909 Third Avenue") (copies of which have been furnished to
Owner) during the Delay Period, (ii) any other rents (exclusive of the cost of
electricity paid by Tenant or included as part of such rent) and additional
rents paid by Tenant to the owners of 909 Third Avenue or any other building for
use and occupancy of space, during the Delay Period, and (iii) (a) any
reasonable costs and expenses incurred by Tenant in defending any possession
proceedings (referred to as "Reimbursed Proceedings") brought against Tenant by
the owners of 909 Third Avenue and/or any other tenant or tenants under an
executed lease affecting all or any portion of Tenant's existing premises at 909
Third Avenue as a direct result of Tenant's failure to vacate such premises on
or prior to the Outside Date, which failure is caused solely by the fact that
the Commencement Date occurs after the Outside Date, and (b) the amount of any
final money judgment against Tenant in any such Reimbursed Proceedings,
provided, however, that (w) Tenant shall give prompt notice to Owner of the
commencement of any such Reimbursed Proceedings against Tenant and copies of all
pleadings and other papers in connection therewith. (x) Owner shall have sole
control of the defense of any such Reimbursed Proceedings, including the
selection of counsel and the right to appeal on Tenant's behalf (y) Tenant shall
cooperate with Owner in the defense of any such Reimbursed Proceeding and (z)
Owner shall have the right to settle any such Reimbursed Proceeding on Tenant's
behalf if, in Owner's sole judgment such settlement is deemed advisable
(provided Owner may not agree in such settlement to the issuance of a warrant of
eviction against Tenant without Tenant's approval, such approval not to be
unreasonably withheld or delayed), and Tenant hereby gives Owner the power of
attorney to settle any such Proceeding on Tenant's behalf (which power shall be
deemed coupled with an interest) and agrees to execute any documents required by
Owner to effectuate the foregoing provisions exceeds (b) an amount equal to the
Fixed Rent, plus any
<PAGE>

                                       6

increases in the Fixed Rent under the provisions of this Lease, including, but
not limited to the provisions of Article 23, which would have accrued if the
Commencement Date had occurred and all rent, holidays under this Lease had
expired, for a period equal to the Delay Period. Tenant shall render to Owner
within six (6) months following the Commencement Date a statement for any sums
claimed to be due from Owner to Tenant under the provisions of this Section, in
sufficient detail and shall accompany with any such statement true copies of all
rent bills and other statements for which Tenant claims repayment. In the event
Tenant does not render such statement to Owner within such six (6) month period,
Tenant shall have no right to claim any repayment from Owner under the
provisions of this Section. Owner shall have the right to dispute the amount set
forth on such statement by giving notice to Tenant of such dispute within ninety
(90) days after Tenant shall have rendered such statement to Owner. In the event
Owner and Tenant are unable to resolve such dispute within thirty (30) days
after Owner's notice to Tenant, such dispute shall be determined by arbitration
in accordance with the provisions of Article 36. Owner shall make any payment
due Tenant under the provisions of this Section within thirty (30) days after
receipt of Tenant's statement therefor provided, however, if Owner shall dispute
any such statement, any payment ultimately found due from Owner to Tenant shall
be made within thirty (30) days after the determination that such amount is due,
together with interest on such amount at the rate equal to two (2%) percent
above the then current prime rate changed by Citibank (N.A.), or its successor,
computed from the date of such determination to and including the date of
payment. The date May 1, 1990 set forth in this Section shall be extended by a
period equal to the aggregate of (i) the number of days, if any, which may have
elapsed between any date upon which any plan is required to be submitted by
Tenant to Owner pursuant to the provisions of Schedule A and the date of
submission by Tenant to Owner of such plan which shall have met with Owner's
approval as provided in Schedule A, plus (ii) the number of days, if any, of
delay or delays in substantial completion of Owner's Initial Construction
occasioned by reason of Tenant's delays in submitting any other plans or
specifications or in supplying information or in approving plans and
specifications or estimates or in giving authorizations, or by reason of any
changes by Tenant in any designations previously made by Tenant pursuant to
Schedule A or by reason of any other similar acts or omissions of Tenant, plus
(iii) the number of days, if any, of delay or delays in substantial completion
of Owner's Initial Construction occasioned by reason of having to obtain the
approval of the Landmarks Commission or any local community board.
Notwithstanding anything contained in the foregoing provisions of this Section
to the contrary, if Tenant shall, during the Delay Period, occupy space in 909
Third Avenue or any other building for its use and occupancy, the rentable area
of which shall exceed or be less than the rentable area of the Demised Premises,
then, in that event, the foregoing provisions of this Section shall be equitably
adjusted so that any sum computed pursuant to subdivision (a) of this Section
shall be based, during such use and occupancy, on Tenant using and occupying a
rentable area no greater or less than the rentable area of the Demised Premises.

     Section 1.06. A. For all purposes of this Lease, subject to the provisions
of subsection D of this Section 1.06, the parties agree that (i) the aggregate
rentable area of the Building above the street floor, as shown on the plans
referred to in Schedule E, is 747,546 square feet, (ii) the aggregate rentable
area of the Demised Premises, exclusive of the Basement Space, as shown on such
plans is 332,242 square feet, (iii) the rentable area of each of the floors
comprising the Demised Premises, and of the Basement Space, as shown on such
plans, are as set forth in subsection 1.03.A(ii), and (iv) the rentable area of
each floor of the Building above the street floor level and exclusive of those
floors comprising the Demised Premises, as shown on such plans, are as set forth
on Schedule D.

     B.  The rentable areas referred to in Paragraph A of this Section have been
calculated in accordance with the following agreed basis of measurement:
rentable square feet shall mean the amount determined by dividing the "usable
area" by .80.

     C.  The term "usable area" shall mean usable square feet determined in
accordance with The Real Estate Board of New York Inc.'s Standard Method of
Floor Measurement effective April, 1982, provided, however, that such
measurement of usable area shall also include the core toilet rooms, air
conditioning and fan rooms, electric, telephone and janitor closets and any
vertical shafts employed in the construction and maintenance of Tenant's private
elevator or "dumb-waiter" type system.

     D.  If, within three (3) months next following the Commencement Date,
either party shall notify the other that the rentable area of either (i) the
Building above the street floor (ii) the Demised Premises, exclusive of the
Basement Space, (iii) any of the floors comprising the Demised Premises,
exclusive of the Basement Space or (iv)
<PAGE>

                                       7

any of the floors of the Building above the street floor level and exclusive of
the floors comprising the Demised Premises, as actually constructed, varies by
more than one (1%) percent from the rentable areas set forth in subsection A of
this Section, subsection 1.03A(ii) or Schedule D, as the case may be, and it
shall be determined, by agreement between the parties or by arbitration,
pursuant to the provisions of subsection E of this Section 1.06, that such
variance actually exists, then this Lease shall be deemed modified as follows:

          (i)   The Fixed Rent shall be equitably increased or decreased, as the
     case may be, retroactively, if required, on the basis of such variance and
     the allocations of Fixed Rent set forth in Subsection 1.03.A(ii), and the
     monthly instalments of the Fixed Rent shall be increased or decreased
     accordingly;

          (ii)  Tenant's Proportionate Share, as defined in Article 23 and as
     set forth for various floors in Subsection 1.03A(ii) and on Schedules D
     and G, shall be increased or decreased, as the case may be, on the basis of
     such variance;

          (iii) The rentable square feet set forth in Subsection 1.03A(ii) and
     on Schedules D and G shall be increased or decreased, as the case may be,
     to the number of rentable square feet, as actually constructed; and

          (iv)  The sums appearing in subparagraph D of paragraph III of
     Schedule A and in the fourth (4th) Column of Schedule G shall be equitably
     increased or decreased, as the case may be, retroactively, if required, on
     the basis of such variance.

     E.  If no notice is given by either party to the other pursuant to the
provisions of subsection D of this Section, within three (3) months next
following the Commencement Date, of any variance referred to in said Subsection
D, the foregoing provisions of this Section shall have no further force or
effect. If either party shall give such notice within three (3) months next
following the Commencement Date, then, within thirty (30) days of the giving of
any such notice, Owner's architect for the Building and Tenant's architect shall
meet and attempt to settle such dispute. If within sixty (60) days of the giving
of any such notice such architects are unable to agree on a mutual
determination, then both of the architects shall select a third independent
architect whose fee shall be borne equally by Owner and Tenant. In the event
that Owner's architect and Tenant's architect shall fail to agree on the
designation of a third architect within ten (10) days after they are required to
do so, then the parties agree to allow the American Arbitration Association, or
any successor organization, to designate the third architect in accordance with
the rules, regulations or procedures then obtaining of the American Arbitration
Association or any successor organization. The third architect shall conduct
such hearings and investigations as he deems appropriate and shall, no later
than sixty (60) days after the date of designation as the third architect,
arrive at a determination which shall be conclusive and binding upon Owner and
Tenant. Each party shall pay its own counsel fees and expenses, if any,
including the expenses and fees of any architect selected by it in accordance
with the provisions of this subsection. Pending the completion of any such
determination, Tenant shall pay Fixed Rent as originally set forth in this
Lease. In the event of any increase or decrease in the Fixed Rent pursuant to
the provisions of this Section 1.06, the allocations of Fixed Rent set forth in
subsection 1.03.A(ii), as modified by various provisions of this Lease, shall be
deemed appropriately modified to reflect such increase or decrease and any
overpayment or underpayment of Fixed Rent shall be refunded or made, as the case
may be, within fifteen (15) days after such determination, provided, however,
that in the event Owner shall be required to refund the amount of any
overpayment to Tenant under the provisions of this subsection. Owner shall have
the option to grant to Tenant, in lieu of such refund, rent credits against the
next accruing monthly installments of Fixed Rent equal to the amount of such
refund.

     F.  At the request of Owner or Tenant, from time to time, the parties shall
execute and deliver to the other, any instrument reasonably requested by the
other, in form reasonably satisfactory to Owner, stating whether or not this
Lease has been modified pursuant to any of the provisions of this Section and,
if modified, setting forth particular modifications; however, neither Owner's
nor Tenant's failure to execute or deliver such instrument shall not vitiate any
of the foregoing provisions of this Section.

     Section 1.07. Tenant covenants (i) to pay the Fixed Rent, any increases in
the Fixed Rent and any additional rent payable pursuant to the provisions of
this Lease, and (ii) to observe and perform, and to permit no violation of the
terms, covenants and conditions of this Lease on Tenant's part to be observed
and performed.
<PAGE>

                                       8

                                   ARTICLE 2

                               Use And Occupancy

     Section 2.01.  Tenant shall use and occupy the Demised Premises for the
following purposes: Executive, administrative and general offices. Landlord
agrees that, in connection with, and incidental to, the use of the Demised
Premises for the purposes set forth in the immediately preceding sentence
Tenant may use portions of the Demised Premises for the following purposes:

          (i)   the preparation and service of food, including an executive
     dining room and cafeteria and/or canteen operated by an outside vendor, all
     for the exclusive use of the officers, employees and business guests of
     Tenant but not for use as a public restaurant, provided that such use does
     not violate any Certificate of Occupancy covering the Demised Premises or
     any law, order or regulation of any governmental authority having
     jurisdiction or any direction pursuant to law of any public officer having
     jurisdiction, or any provision of this Lease;

          (ii)  the sale, by vending machine, to the officers, employees and
     business guests of Tenant (but not to the public) of soft drinks, candy and
     other items commonly sold in office vending machines, provided that the
     sale of any such items does not violate any Certificate of Occupancy
     covering the Demised Premises or any law, order or regulation of any
     governmental authority having jurisdiction or any direction pursuant to
     law of any public officer having jurisdiction, or any provision of this
     Lease; and

          (iii) installation, maintenance and operation of (a) electronic data
     processing equipment, computer equipment and business machines (including
     without limitation, audio-visual equipment), (b) printing and other
     reporting equipment (including without limitation, multilith, multigraph,
     reproductions, offset printing normally used in an office as opposed to
     offset printing used in a print shop, blueprint, photostating and
     duplicating equipment) and (c) a test kitchen for the preparation of the
     products of Tenant's clients, provided that any such installation,
     maintenance and operation shall be in accordance with the provisions of
     this Lease, does not violate any Certificate of Occupancy covering the
     Demised Premises, or any law, order or regulation of any governmental
     authority having jurisdiction, or any direction pursuant to law of any
     public officer having jurisdiction, or any provisions of this Lease and
     does not constitute a use for manufacturing or factory purposes pursuant to
     the New York State Labor Law or any successor statute.

          (iv)   an in-house travel agency for the use of the officers and
     employees of Tenant in connection with business related travel of such
     officers and employees (but not for the public) provided that such use does
     not violate any Certificate of Occupancy covering the Demised Premises or
     any law, order or regulation of any governmental authority having
     jurisdiction or any directions pursuant to law of any public officer having
     jurisdiction, or any provisions of this Lease.

     Section 2.02. Tenant shall not use or occupy, or permit the use or
occupancy of, the Demised Premises or any part thereof, for any purposes other
than the purposes specifically set forth in Section 2.01, or in any manner
which, in Owner's reasonable judgment, (a) shall adversely affect or interfere
with (i) any services required to be furnished by Owner to Tenant or to any
other tenant or occupant of the Building, or (ii) the proper and economical
rendition of any such service, or (iii) the use or enjoyment of any part of the
Building by any other tenant or occupant, or (b) shall impair the character or
dignity of the Building.

                                   ARTICLE 3

                                  Alterations

     Section 3.01. Tenant shall not make or perform, or permit the making or
performance of, any alterations, installations, improvements, additions or other
physical changes in or about the Demised Premises (referred to collectively, as
"Alterations") without Owner's prior consent. Owner agrees not to unreasonably
withhold its consent to any nonstructural Alterations proposed to be made by
Tenant to the Demised Premises. Notwithstanding the foregoing provisions of this
Section or Owner's consent to any Alterations, all Alterations and decorations
shall be made and performed in conformity with and subject to the following
provisions: All Alterations and decorations shall be made and performed at
Tenant's sole cost and expense and at such time and in such manner as Owner may,
from time to time, reasonably designate; no Alteration or decoration shall
<PAGE>

                                       9

adversely affect the structural integrity of the Building; Alterations shall be
made only by contractors or mechanics approved by Owner, such approval not
unreasonably to be withheld (notwithstanding the foregoing, all Alterations
requiring mechanics in trades with respect to which Owner has adopted or may
hereafter adopt a list or lists of approved contractors shall be made only by
contractors selected by Tenant from such list or lists,  which lists shall
contain not less than three (3) contractors for each trade, except that with
respect to such trades where it is not reasonably practical for such list to
contain not less than three (3) contractors, such list may contain less than
three (3)); no Alteration or decoration shall affect any part of the Building
other than the Demised Premises or adversely affect any service required to be
furnished by Owner to Tenant or to any other tenant or occupant of the Building
or reduce the value or utility of the Building; no Alteration or decoration
shall affect the outside appearance of the Building or the color or style of any
venetian blinds (except that Tenant may remove any venetian blinds provided that
they are promptly replaced by Tenant with blinds of a similar type, material and
color); all business machines and mechanical equipment shall be placed and
maintained by Tenant in settings sufficient, in Owner's reasonable judgment, to
absorb and prevent vibration, noise and annoyance to other tenants or occupants
of the Building; Tenant shall submit to Owner detailed plans and specifications
(including layout, architectural, mechanical and structural drawings) for each
proposed Alteration and shall not commence any such Alteration without first
obtaining Owner's approval of such plans and specifications which approval shall
not be unreasonably withheld; prior to the commencement of such proposed
Alteration Tenant shall have procured and paid for, and exhibited to Owner, so
far as the same may be required from time to time, all permits and
authorizations of all municipal departments and governmental subdivisions and
authorities having or claiming jurisdiction; prior to the commencement of each
proposed Alteration or decoration. Tenant shall furnish to Owner duplicate
original policies of workmen's compensation insurance covering all persons to be
employed in connection with such Alteration or decoration, including those to be
employed by all contractors and subcontractors, and of comprehensive public
liability insurance (including property damage coverage) in which Owner, its
agents and any lessor under any ground or underlying lease shall be named as
parties insured, which policies shall be issued by companies, and shall be in
form and amounts, reasonably satisfactory to Owner and shall be maintained by
Tenant until the completion of such Alteration or decoration; all fireproof
wood test reports, electrical and air conditioning certificates, and all other
permits, approvals and certificates required by all governmental authorities
shall be timely obtained by Tenant and submitted to Owner; all Alterations and
decorations, once commenced, shall be made promptly and in a good and
workmanlike manner; notwithstanding Owner's approval of plans and specifications
for any Alteration or decoration, all Alterations and decorations shall be made
and performed in full compliance with all applicable laws, orders and
regulations (including, but not limited to, the New York State Energy
Conservation Construction Code) of Federal, State, County and Municipal
authorities and with all directions, pursuant to law, of all public officers,
and with all applicable rules, orders, regulations and requirements of the
New York Board of Fire Underwriters and the New York Fire Insurance Rating
Organization or any similar body; all Alterations and decorations shall be made
and performed in accordance with the Building Rules: all materials and equipment
to be installed, incorporated or located in the Demised Premises as a result of
any Alteration or decoration shall be new and first quality; no such materials
or equipment shall be subject to any lien, encumbrance, chattel mortgage or
title retention or security agreement of any kind; Tenant, before commencement
of such Alteration, shall furnish to Owner a performance bond or other security
satisfactory to Owner in an amount at least equal to the estimated cost of such
Alteration provided, however, Tenant shall not be required to furnish a
performance bond or other security satisfactory to Owner in the event that at
the time of the making of such Alteration Tenant's gross annual capitalized
billings shall equal at least $l.5 Billion Dollars and Tenant shall present
reasonable proof thereof to Owner, in the event Owner or its agents employ any
independent architect or engineer to examine any plans or specifications
submitted by Tenant to Owner in connection with any proposed Alteration, Tenant
agrees to pay Owner a sum equal to any reasonable fees incurred by Owner in
connection therewith. Notwithstanding the foregoing provisions of this Section
3.01 to the contrary, Owner's prior consent shall not be required for any non-
structural Alteration or series of Alterations constituting a single project
proposed to be made by Tenant to the Demised Premises the cost of which shall
not exceed the sum of Fifty Thousand ($50,000.00) Dollars. For the purposes of
the immediately preceding sentence, the sum of fifty Thousand ($50,000.00)
Dollars shall be deemed increased on the fifth (5th) anniversary of the
Commencement Date and on each fifth (5th) anniversary date thereafter by the
percentage increase in the Price Index, as such term is defined in Section
40.04.A., during each such five (5) year period.

<PAGE>

                                       10

     Section 3.02. In the event of any dispute between Owner and Tenant as to
the reasonability of Owner's failure or refusal to grant any consent or
approval requested by Tenant pursuant to the provisions of Section 3.01 with
respect to which Owner has agreed to act reasonably, such dispute shall be
determined by arbitration in accordance with the provisions of Article 36.

     Section 3.03. Nothing in this Lease shall be deemed or construed in any way
as constituting the consent or request of Owner, express or implied, by
inference or otherwise, to any contractor, subcontractor, laborer or
materialman, for the performance of any labor or the furnishing of any material
for any specific Alteration to, or repair of, the Demised Premises, the
Building, or any part of either. Any mechanic's or other lien filed against the
Demised Premises or the Building or the Real Property for work claimed to have
been done for, or materials claimed to have been furnished to, Tenant or any
person claiming through or under Tenant or based upon any act or omission or
alleged act or omission of Tenant or any such person shall be discharged by
Tenant either by payment or by securing the appropriate bond, at Tenant's sole
cost and expense, within twenty (20) days after notice of the filing of such
lien.

     Section 3.04. Tenant shall not, at any time prior to or during the Demised
Term, directly or indirectly employ or permit the employment of, any contractor,
mechanic or laborer in the Demised Premises, whether in connection with any
Alteration or otherwise, if such employment will interfere or cause any
conflict with other contractors, mechanics, or laborers engaged in the
construction, maintenance or operation of the Building by Owner, Tenant or
others. In the event of any such interference or conflict, Tenant, upon demand
of Owner, shall cause all contractors, mechanics or laborers causing such
interference or conflict to leave the Building immediately.

     Section 3.05. Without in any way limiting the generality of the provisions
of Section 3.01, Alterations shall be made and performed in full compliance with
(a) New York City Local Law #5 of 1973 and #16 of 1984 and any successor law of
like import and (b) all reasonable standards and practices adopted by Owner for
fire safety in the Building. No Alteration shall affect all or any part of the
Class E Fire Alarm and Communication system installed in the Demised Premises,
except that in connection with any such Alteration Tenant may relocate certain
components of such system, provided (i) such relocation shall be performed in a
manner first approved by Owner, which approval shall not be unreasonably
withheld, (ii) the new location of any such component shall be first approved by
Owner, which approval shall not be unreasonably withheld, (iii) prior to any
such relocation Tenant shall submit to Owner detailed plans and specifications
therefor which shall be first approved by Owner, which approval shall not be
unreasonably withheld, and (iv) Owner shall have the election of relocating such
components either by itself or by its contractors, in which event Tenant, upon
request of Owner, shall reimburse Owner for all reasonable expenses incurred by
Owner in connection therewith.

                                   ARTICLE 4

                           Ownership of Improvements

     Section 4.01. All appurtenances, fixtures, improvements, additions and
other property attached to or installed in the premises demised in this Lease,
whether by Owner or Tenant or others, and whether at Owner's expense, or
Tenant's expense, or the joint expense of Owner and Tenant, shall be and remain
the property of Owner, except that any such fixtures, improvements, additions
and other property installed at the sole expense of Tenant with respect to which
Tenant has not been granted any credit or allowance by Owner, whether pursuant
to Schedule A or otherwise, and which are removable without material damage to
the said premises shall be and remain the property of Tenant and are referred to
as "Tenant's Personal Property". Any replacements of any property of Owner,
whether made at Tenant's expense or otherwise, shall be and remain the property
of Owner. The fact that Tenant is not required to pay Fixed Rent for the period
set forth in subsection D of Section 1.03 pursuant to the provisions of said
subsection D of Section 1.03 shall not be deemed a credit or allowance for
purposes of this Section 4.01.
<PAGE>

                                       11

                                   ARTICLE 5

                                    Repairs

     Section 5.01. Subject to the provisions of Section 5.02, Tenant shall take
good care of the Demised Premises (including, but not limited to, the sprinkler
system installed therein) and, at Tenant's sole cost and expense, shall make all
repairs and replacements, structural and otherwise, ordinary and extraordinary,
foreseen and unforeseen, as and when needed to preserve the Demised Premises
(including, but not limited to, the sprinkler system installed therein) in good
and safe working order and in first class repair and condition, except that
Tenant shall not be required to make any such structural repairs or structural
replacements to the Demised Premises unless necessitated or occasioned by the
acts, omissions or negligence of Tenant or any person claiming through or under
Tenant, or any of their servants, employees, contractors, agents, visitors or
licensees, or by the use or occupancy or manner of use or occupancy of the
Demised Premises by Tenant or any such person. Without affecting Tenant's
obligations set forth in the preceding sentence, Tenant, at Tenant's sole cost
and expense, shall also (i) make all replacements, as and when necessary, to the
lamps, tubes, ballasts, and starters in the lighting fixtures installed in the
Demised Premises, (ii) make all repairs and replacements, as and when necessary,
to Tenant's Personal Property and to any Alterations made or performed by or on
behalf of Tenant or any person claiming through or under Tenant, and (iii) if
the Demised Premises shall include any space on any ground, street, mezzanine
or basement floor in the Building, make all replacements, as and when necessary,
to all windows and plate and other glass in, on or about such space, and obtain
and maintain, throughout the Demised Term, plate glass insurance policies issued
by companies, and in form and amounts, satisfactory to Owner, in which Owner,
its agents and any lessor under any ground or underlying lease shall be named as
parties insured, and (iv) perform all maintenance and make all repairs and
replacements, as and when necessary, to any supplemental air conditioning
equipment, private elevators, escalators, conveyors or mechanical systems (other
than the Building's standard equipment and systems) which may be installed in
the Demised Premises by Owner, Tenant or others.  However, the provisions of the
foregoing sentence shall not be deemed to give to Tenant any right to install
air conditioning equipment, elevators, escalators, conveyors or mechanical
systems. All repairs and replacements made by or on behalf of Tenant or any
person claiming through or under Tenant shall be made and performed in
conformity with, and subject to the provisions of, the third (3rd) sentence of
Section 3.01 and shall be at least comparable in quality and class to the
original work or installation. The necessity for, and adequacy of, repairs and
replacements pursuant to this Article 5 shall be measured by the standard which
is appropriate for first class office buildings of similar construction and
class in the Borough of Manhattan, City of New York.

     Section 5.02. Owner at Owner's sole cost and expense, shall make (i) all
structural repairs and replacements to the Demised Premises as and when
required, including repairs to the sprinkler system installed therein, (ii) all
repairs necessary to furnish the utilities and services required to be furnished
by Landlord to Tenant under the provisions of Article 29, (iii) all repairs
necessary to correct any latent defects in the Demised Premises (other than
defects connected with or related to any Alterations made or performed by or on
behalf of Tenant by persons other than Owner or Owner's contractors), (iv) all
structural repairs and replacements to the exterior and foundation of the
Building necessary to Tenant's use of the Demised Premises, (v) all necessary
repairs to public portions of the Building which affect Tenant's use and
enjoyment of the Demised Premises, (vi) all repairs to the Demised Premises
occasioned by any negligence of Owner or the contractors, agents, servants or
employees of Owner occurring after the completion of Owner's Initial
Construction, and (vii) all repairs to the Class E Fire Alarm and Communication
System installed therein, except that Landlord shall not be required to make any
repairs referred to in subdivisions (i), (ii), (iii), (iv), (v), (vi) or (vii)
of this sentence if Tenant is obligated to make such repairs pursuant to the
provisions of Section 5.01. Notwithstanding the foregoing provisions of this
Section, Owner shall have no obligation to make any such repairs and
replacements unless and until specific notice of the necessity therefor shall
have been given by Tenant to Owner, or Owner shall otherwise have received
specific notice of the necessity therefor, and Owner shall have no obligation to
make any repair pursuant to subdivision (iii) of the first sentence of this
Section with respect to any Occupancy Unit unless such notice shall have been
given within one (1) year following the applicable Earlier Completion Date, or
the Commencement Date, in the Demised Term shall commence on May 1, 1989. Owner
agrees that solely in cases of an emergency to employ contractors or labor at
overtime or other premium pay rates to make repairs required to be made by Owner
pursuant to the provisions of this Section 5.02.
<PAGE>

                                       12

                                   ARTICLE 6

                             Compliance With Laws

     Section 6.01. Tenant, at Tenant's sole cost and expense, shall comply with
all present and future laws, orders and regulations (including, but not limited
to, the New York State Energy Conservation Construction Code) of Federal, State,
County and Municipal authorities, and with all directions, requirements, orders
and notices of violation thereof, issued by all public officers, which shall
impose any duty upon Owner or Tenant with respect to the Demised Premises or the
use or occupation thereof, whether ordinary or extraordinary, foreseen or
unforeseen, except that Tenant shall not be required to make any (i) structural
Alterations in order so to comply unless such Alterations shall be necessitated
or occasioned, in whole or in part, by the acts, omissions, or negligence of
Tenant or any person claiming through or under Tenant, or any of their servants,
employees, contractors, agents, visitors or licensees, or by the manner of use
or occupancy of the Demised Premises by Tenant or by any such person (in
contradistinction to the mere use or occupancy of the Demised Premises as
offices) or (ii) Alterations in order to so comply resulting from any legal
requirement in effect on the Commencement Date which Owner was required to
comply with as a condition of obtaining a Certificate of Occupancy for the
Demised Premises. Any work or installations made or performed by or on behalf of
Tenant or any person claiming through or under Tenant pursuant to the provisions
of this Article shall be made in conformity with, and subject to the provisions
of, the third (3rd) sentence of Section 3.01.

     Section 6.02. Tenant shall not do anything, or permit anything to be done,
in or about the Demised Premises which shall (i) invalidate or be in conflict
with the provisions of any fire or other insurance policies covering the
Building or any property located therein, or (ii) result in a refusal by fire
insurance companies of good standing to insure the Building or any such property
in amounts reasonably satisfactory to Owner, or (iii) subject Owner to any
liability or responsibility for injury to any person or property by reason of
any business operation being conducted in the Demised Premises, or (iv) cause
any increase in the fire insurance rates applicable to the Building or property
located therein at the beginning of the Demised Term or at any time thereafter.
Tenant, at Tenant's expense, shall comply with all present and future rules,
orders, regulations and requirements of the New York Board of Fire Underwriters
and the New York Fire Insurance Rating Organization or any similar body and the
issuer of any insurance obtained by Owner covering the Building and/or the Real
Property, whether ordinary or extraordinary, foreseen or unforeseen.

     Section 6.03. Notwithstanding anything contained in Section 6.02 to the
contrary, Tenant shall not be deemed to have caused any increase in the fire
insurance rate applicable to the Building or property located therein at any
Earlier Completion Date or the Commencement Date or any time thereafter, nor
shall Tenant be required to make any Alterations in order to comply with any
rules, orders, regulations, or requirements of the New York Board of Fire
Underwriters and the New York Fire Insurance Rating Organization or any similar
body, unless such rates are increased, or such Alterations shall be necessitated
or occasioned, in whole or in part, by the acts, omissions, or negligence of
Tenant or any person claiming through or under Tenant, or any of their servants,
employees, contractors, agents, visitors or licensees, or by the manner of use
of the Demised Premises by Tenant or any such persons (in contradistinction to
the mere use or occupancy of the Demised premises as offices).

     Section 6.04. In any action or proceeding wherein Owner and Tenant are
parties, a schedule or "make up" of rates applicable to the Building or
property located therein issued by the New York Fire Insurance Rating
Organization, or other similar body fixing such fire insurance rates, shall be
conclusive evidence of the facts therein stated and of the several items and
charges in the fire insurance rates then applicable to the Building or property
located therein.

     Section 6.05. Tenant shall have the right after prior written notice to
Owner and the lessors under all ground or underlying leases, to contest, by
appropriate legal proceedings diligently conducted in good faith, at its own
cost and expense, the validity or application of any law, order, regulation or
direction with which Tenant is required to comply under the provisions of this
Article 6 and to defer compliance during the pendency of such contest, provided
that:
<PAGE>

                                      13

          (i)    Such contest shall not subject Owner or any lessor under any
     ground or underlying lease to any criminal penalty or impose upon Owner any
     unusual obligation or liability or affect any service required to be
     furnished by Owner to any other tenant or occupant of the Building; and

          (ii)   Neither such contest nor Tenant's failure to comply pending
     such contest shall constitute a default under any ground or underlying
     lease or under any mortgage affecting any ground or underlying lease, or
     the Building, or the Real Property; and

          (iii)  Tenant shall obtain and maintain during the pendency of any
     such contest a bond in form and amount and issued by a surety company
     reasonably satisfactory to Owner and the lessors under all ground or
     underlying leases, indemnifying and protecting Owner and the lessors under
     all ground or underlying leases from and against any and all damages,
     expenses, losses, injuries, fees including, but not limited to, reasonable
     counsel fees, penalties, actions, causes of action, suits, costs, claims
     or judgments arising from such contest or Tenant's non-compliance with any
     such law, order, regulation or direction.

                                   ARTICLE 7

                        Subordination, Attornment, Etc.

     Section 7.01. This Lease and all rights of Tenant under this Lease are, and
shall remain, unconditionally subject and subordinate in all respects to the
presently existing mortgages affecting the indenture of lease dated as of March
13, 1985 between The Shubert Organization, Inc., as landlord, and Owner, as
tenant (referred to as the "Ground and Development Rights Lease") which are
presently held by Manufacturers Hanover Trust Company and to all advances made
or hereafter to be made under said mortgages, and to all renewals,
modifications, replacements and extensions of, and substitutions for, such
mortgages, as well as to any consolidations or correlations of such mortgages
with other mortgages. Owner agrees to obtain and deliver to Tenant not later
than one hundred eighty (180) days after the date of this Lease, an agreement
substantially to the effect that in the event of any foreclosure of said
mortgages such holder or holders will not make Tenant a party defendant to such
foreclosure nor disturb its possession under this Lease so long as there shall
be no default by Tenant under this lease beyond the applicable grace periods
provided for the curing of such default (any such agreement, or any agreement of
similar import, is referred to in this Lease as a "Non-Disturbance Agreement").
If Owner shall fail to make timely delivery to Tenant of such Non-Disturbance
Agreement, Tenant, as Tenant's sole remedy for such failure, shall have the
right, exercisable within one-hundred ninety (190) days after the date of this
Lease, to cancel and terminate this Lease by notice given to Owner. Upon the
giving of such notice of cancellation and termination, this Lease shall
terminate and come to an end and neither party shall have any further rights or
liabilities under this Lease. It is agreed that time is of the essence with
respect to any such notice of cancellation and termination, that Tenant shall
not have the right to give any such notice after the one-hundred ninety (190)
day period hereinabove referred to, and that any such notice given after the
expiration of such period shall have no force or effect.

     Section 7.02. This Lease and all rights of Tenant under this Lease shall be
and remain, unconditionally subject and subordinate in all respects to all other
mortgages which may, from time to time, affect the Ground and Development Rights
Lease, any future ground or underlying lease referred to in Section 7.04 or the
Real Property and to all advances to be made under such mortgages, and to all
renewals, modifications, consolidations, correlations, replacements and
extensions of, and substitutions for, any such mortgage or mortgages, provided
that (i) the holder of any such mortgage shall execute and deliver a Non-
Disturbance Agreement to Tenant, or (ii) any such mortgage shall contain
provisions substantially to the same effect as those contained in a
Non-Disturbance Agreement (any such provisions are referred to in this Lease as
"Non-Disturbance Provisions").

     Section 7.03. This Lease and all rights of Tenant under this Lease are, and
shall remain, unconditionally subject and subordinate in all respects to the
Ground and Development Rights Lease and to all renewals, modifications,
replacements and extensions of, and substitutions for, such lease. Owner agrees
that until such time as Owner has delivered to Tenant a Tenant Recognition
Agreement (as hereinafter defined), Owner will not enter into any agreement to
modify the provisions of Section 14.04 of the Ground and Development Rights
Lease. An agreement from the lessor under the Ground and Development Rights
Lease substantially to the effect that in the event of the termination of the
Ground and Development Rights Lease for any reason other than a

<PAGE>

                                      14

termination by operation of the provisions of Articles 8 (entitled "Damage to or
Destruction of the Building") and 9 (entitled "Condemnation") of such Lease such
lessor will permit Tenant to attorn to such lessor and will not disturb its
possession under this Lease, so long as there shall be no default by Tenant
under this Lease, beyond the applicable grace period provided in this Lease for
the curing of such default, or any agreement of similar import, is referred to
in this Lease as a "Tenant Recognition Agreement". Owner agrees, within thirty
(30) days next following the date of this Lease, to request from the lessor
under the Ground and Development Rights Lease a Tenant Recognition Agreement in
favor of Tenant with respect to this Lease and to take all reasonable steps to
obtain the same.

     Section 7.04. This lease and all rights of Tenant under this Lease shall be
and remain, unconditionally subject and subordinate in all respects to all
future ground or underlying leases affecting the Real Property or any portion
thereof or the Building and to all renewals, modifications, replacements and
extensions of, and substitutions for, such ground or underlying leases, provided
that (i) any such ground or underlying lease shall contain provisions
substantially to the same effect as those contained in a Tenant Recognition
Agreement, (any such provisions are referred to in this lease as "Tenant
Recognition Provisions"), or (ii) the lessor under any such ground or underlying
lease shall execute and deliver to Tenant a Tenant Recognition Agreement,

     Section 7.05.  A. At Owner's request, Tenant shall execute and deliver
promptly any certificate or other instrument which Owner may request,
subordinating this Lease and all rights of Tenant under this Lease to any
mortgages which may now or hereafter affect the Real Property and/or the real
property from which the development rights demised in the Ground and Development
Rights Lease accrue and/or any ground or underlying lease affecting such real
property, and to all advances made or hereafter to be made under such mortgages,
and to all renewals, modifications, consolidations, correlations, replacements
and extensions of, and substitutions for, any such mortgage or mortgages,
provided that (i) the holder of any such mortgage shall execute and deliver a
Non-Disturbance Agreement to Tenant, or (ii) any such mortgage shall contain
Non-Disturbance Provisions. In the event Tenant shall fail to execute or deliver
any such certificate or other instrument which may be requested pursuant to the
foregoing provisions of this subsection within a reasonable time after Owner's
request therefor, Tenant hereby irrevocably constitutes and appoints Owner as
Tenant's agent and attorney-in-fact to execute any such certificate or other
instrument for or on behalf of Tenant.

     B. The subordination provisions of this Article (with the exception of the
provisions of subsection A of this Section 7.05) shall be self-operative and no
further instrument of subordination shall be required. In confirmation of such
subordination, Tenant shall execute and deliver promptly any certificate or
other instrument which Owner, or any lessor under any ground or underlying
lease, or any holder of any such mortgage may reasonably request, and if Tenant
shall fail to execute and deliver any such certificate or other instrument
within a reasonable time after Owner's request therefor. Tenant hereby
irrevocably constitutes and appoints Owner and all such lessors and holders,
acting jointly or severally, as Tenant's agent and attorney-in-fact to execute
any such certificate or other instrument for or on behalf of Tenant. If, in
connection with obtaining financing with respect to the Building, the Real
Property, the real property from which the development rights demised in the
Ground and Development Rights Lease accrue or the interest of the lessee under
any ground or underlying lease, any recognized lending institution shall request
reasonable modifications of this Lease as a condition of such financing, Tenant
covenants not unreasonably to withhold or delay its agreement to such
modifications, provided that such modifications do not increase the obligations,
or materially and adversely affect the rights, of Tenant under this Lease. No
act or failure to act on the part of Owner which would entitle Tenant under the
terms of this Lease, or by law, to be relieved of Tenant's obligations hereunder
or to terminate this Lease shall result in a release or termination of such
obligations or a termination of this Lease unless (i) Tenant shall have first
given written notice of Owner's act or failure to act to the holder or holders
of any mortgage of whom Tenant has been given written notice specifying the act
or failure to act on the part of Owner which could or would give basis to
Tenant's rights; and (ii) the holder or holders of such mortgages, after receipt
of such notice, have failed or refused to correct or cure the condition
complained of within a reasonable time thereafter, but nothing contained in this
sentence shall be deemed to impose any obligation on any such holder to correct
or cure any such condition. "Reasonable time" as used above means and includes a
reasonable time to obtain possession of the Building if any such holder elects
to do so and a reasonable time to correct or cure the condition if such
condition is to exist.
<PAGE>

                                      15

     Section 7.06. If at any time prior to the expiration of the Demised Term,
any ground or underlying lease under which Owner then shall be the lessee shall
terminate or be terminated for any reason. Tenant agrees, at the election and
upon request of any owner of the Real Property, or of the holder of any mortgage
in possession of the Real Property or the Building, or of any lessee under any
other ground or underlying lease covering premises which include the Demised
Premises, to attorn, from time to time, to any such owner, holder, or lessee,
upon the then executory terms and conditions of this Lease, for the remainder of
the term originally demised in this Lease, provided that such owner, holder or
lessee, as the case may be, shall then be entitled to possession of the Demised
Premises. The provisions of this Section shall enure to the benefit of any such
owner, holder, or lessee, shall apply notwithstanding that, as a matter of law,
this Lease may terminate upon the termination of any such ground or underlying
lease, shall be self-operative upon any such request, and no further instrument
shall be required to give effect to said provisions. Tenant, however, upon
request of any such owner, holder, or lessee, agrees to execute, from time to
time, instruments in confirmation of the foregoing provisions of this Section,
satisfactory to any such owner, holder, or lessee, acknowledging such attornment
and setting forth the terms and conditions of its tenancy. Nothing contained in
this Section shall be construed to impair any right otherwise exercisable by any
such owner, holder, or lessee.

     Section 7.07. Nothing contained in this Article or in any Non-Disturbance
Provision, Non-Disturbance Agreement, Tenant Recognition Provision or Tenant
Recognition Agreement shall, however, affect the prior rights of the holder of
any existing or future mortgage or of the lessor under any ground or underlying
lease with respect to the proceeds of any award in condemnation or of any fire
insurance policies affecting the Building, or impose upon any such holder or
lessor any liability (i) for the erection or completion of the Building, or (ii)
in the event of damage or destruction to the Building or the Demised Premises,
for any repairs, replacements, rebuilding or restoration except as can
reasonably be accomplished from the net proceeds of insurance actually received
by, or made available to, such holder or lessor, or (iii) for any default by
Owner under this Lease occurring prior to any date upon which such holder or
lessor shall become Tenant's landlord, or (iv) for any credits, offsets or
claims against the rent under this Lease as the result of any acts of Owner
committed prior to such date, and any such Provision or Agreement may so state.
Any such Provision or Agreement may also be conditioned upon the existence of
any one or more of the following circumstances at the time of the commencement
of any foreclosure of any such mortgage or at the time of the termination of any
such ground or underlying lease, as the case may be:

     A.   The Demised Term shall have commenced or Tenant shall have taken
possession of the Demised Premises;

     B.   Tenant shall not be in default in the observance or performance of any
of the covenants of this Lease on the part of Tenant to be observed or performed
beyond the applicable grace period provided in this Lease for the curing of such
default;

     C.   Tenant shall not have paid rent in advance beyond the rent period next
following the current rent period, and there shall be no offsets then accrued
against future rent chargeable against the holder of any such mortgage after
foreclosure or against the lessor under such ground or underlying lease after
termination, as the case may be.

     D.   Any circumstance substantially similar to B or C; or

     E.   Tenant shall have furnished to the then holder of any such mortgage or
the then lessor under any such ground or underlying lease, as the case may be, a
statement, in writing, as to the status of this Lease with respect to the above
circumstances A, B and C or any circumstance substantially similar to B or C,
within ten (10) days after such holder or lessor shall have made written demand
for such statement by registered or certified mail addressed to Tenant.

     Section 7.08. A. At the request of Owner, Tenant shall promptly execute and
deliver any instrument or instruments requested by Owner for the benefit of the
holder of any mortgage to which this Lease shall then be subordinate as
hereinabove provided, or for the benefit of the lessor under any ground or
underlying lease to which this Lease shall then be subordinate as hereinabove
provided, in which Tenant shall covenant and agree with such holder or lessor
that (a) Tenant will not enter into any agreement to cancel or modify this Lease
without the written approval of such holder or lessor, and (b) Tenant will not
take any action or institute any proceeding against Owner to cancel or modify
this Lease without giving to such holder or lessor at least thirty (30) days'
prior written notice of such action or proceeding, except that the provisions of
any such instrument shall not apply to

<PAGE>
                                      16

any modifications of this Lease contemplated in any of the provisions of this
Lease, or to any right or option to cancel or modify this Lease expressly
reserved or granted to Tenant pursuant to any of the provisions of this Lease.

     B.   If required by the holder of any mortgage or by the lessor under any
ground or underlying lease, Tenant shall promptly join in any Non-Disturbance
Agreement or Tenant Recognition Agreement to indicate its concurrence with the
provisions thereof, provided such agreement shall substantially comply with the
provisions of this Article.

     Section 7.09. A. From time to time, within seven (7) days next following
Owner's request, Tenant shall deliver to Owner a written statement executed and
acknowledged by Tenant, in form reasonably satisfactory to Owner, (i) stating
that this Lease is then in full force and effect and has not been modified (or
if modified, setting forth the specific nature of all modifications), and (ii)
setting forth the date to which the Fixed Rent has been paid, and (iii) stating
whether or not, to the best knowledge of Tenant, Owner is in default under this
Lease, and, if Owner is in default, setting forth the specific nature of all
such defaults and (iv) stating that Tenant has accepted and occupied the Demised
Premises, and all improvements required to be made by Owner pursuant to the
provisions of this Lease, have been made, if such be the case. Tenant
acknowledges that any statement delivered pursuant to this subsection may be
relied upon by any purchaser or owner of the Building, or the Real Property, or
any part thereof, or Owner's interest in the Building or the Real Property or
any ground or underlying lease, or by any mortgagee, or by any assignee of any
mortgagee, or by any lessee under any ground or underlying lease.

     B.   From time to time, within seven days next following Tenant's request,
Owner shall deliver to Tenant a written statement executed by Owner, in form
reasonably satisfactory to Tenant and prepared at Tenant's expense, (i) stating
that this Lease is in full force and effect and has not been modified (and if
modified, that this Lease is then in full force and effect as so modified and
the specific nature of all modifications), and (ii) setting forth the date to
which the Fixed Rent has been paid, and (iii) stating whether or not, to the
best knowledge of Owner, Tenant is in default under this Lease and, if Tenant is
in default, setting forth the specific nature of all such defaults. Owner
acknowledges that any statement delivered pursuant to this subsection may be
relied upon by any institutional lender making loans to Tenant, or any
prospective assignee of Tenant's interest in this Lease (whether pursuant to the
provisions of Section 11.06 or otherwise) or by any prospective subtenants or by
any entity which acquires all or substantially all of the issued and outstanding
capital stock of Tenant, provided, however, the foregoing provisions of this
sentence shall not be deemed to give Tenant any rights of assignment and
subletting which are not expressly provided for in this Lease.

     Section 7.10. If Owner assigns its interest in this Lease, or the rents
payable hereunder, to the holder of any mortgage or the lessor under any ground
or underlying lease, whether the assignment shall be conditional in nature or
otherwise, Tenant agrees that (a) the execution thereof by Owner and the
acceptance by such holder or lessor shall not be deemed an assumption by such
holder or lessor of any of the obligations of the Owner under this Lease unless
such holder or lessor shall, by written notice sent to Tenant, specifically
otherwise elect; and (b) except as aforesaid, such holder or lessor shall be
treated as having assumed Owner's obligations hereunder only upon the
foreclosure of such holder's mortgage or the termination of such lessor's lease
and the taking of possession of the Demised Premises by such holder or lessor,
as the case may be.

     Section 7.11. A. Tenant agrees to cooperate with Owner in Owner's obtaining
any Non-Disturbance Agreement and Tenant Recognition Agreement and Tenant shall
provide Owner and the holder of any mortgage and lessor under any ground or
underlying lease with any information reasonably required by them in connection
with obtaining any such Non-Disturbance Agreement or Tenant Recognition
Agreement, including, without limitation, financial statements of Tenant.

     B. Owner covenants and agrees to exercise its renewal options set forth in
the Ground and Development Rights Lease, if necessary, at such time as Owner
elects, so that the term of such lease shall extend at least one (1) day beyond
the Demised Term, as the Demised Term may be extended in accordance with the
provisions of Article 40 of this Lease.

<PAGE>

                                      17

                                   ARTICLE 8

                              Property Loss, Etc.

     Section 8.01. Any Building employee to whom any property shall be entrusted
by or on behalf of Tenant shall be deemed to be acting as Tenant's agent with
respect to such property and neither Owner nor Owner's agents shall be liable
for any loss of, or damage to, any such property by theft or otherwise. Neither
(i) the performance by Owner, Tenant or others of any decorations, repairs,
alterations, additions or improvements in or to the Building or the Demised
Premises, nor (ii) the failure of Owner or others to make any such decorations,
repairs, alterations, additions or improvements, nor (iii) any damage to the
Demised Premises or to the property of Tenant, nor any injury to any persons,
caused by other tenants or persons in the Building, or by operations in the
construction of any private, public or quasi-public work, or by any other cause,
nor (iv) any latent defect in the Building or in the Demised Premises, nor (v)
any temporary closing or darkening or bricking up of any windows of the Demised
Premises for any reason whatsoever including, but not limited to, Owner's own
acts or any permanent closing, darkening or bricking up of any such windows if
required by law or related to any construction upon adjacent property by Owner
or other, nor (vi) any inconvenience or annoyance to Tenant or injury to or
interruption of Tenant's business by reason of any of the events or occurrences
referred to in the foregoing subdivisions (i) through (v), shall constitute an
actual or constructive eviction, in whole or in part, or entitle Tenant to any
abatement or diminution of rent, or relieve Tenant from any of its obligations
under this Lease, or impose any liability upon Owner, or its agents, or any
lessor under any ground or underlying lease, other than such liability as may be
imposed upon Owner by law for Owner's negligence or the negligence of Owner's
agents, servants or employees in the operation or maintenance of the Building or
for the breach by Owner of any express covenant of this Lease on Owner's part to
be performed. Tenant's taking possession of the Demised Premises or any
Occupancy Unit shall be presumptive evidence, as against Tenant, that, at the
time such possession was so taken, the Demised Premises or such Occupancy Unit
and the Building were in good and satisfactory condition and Owner's Initial
Construction with respect to the Demised Premises or such Occupancy Unit, as the
case may be, was substantially completed, except for repairs required to be made
by Owner pursuant to the provisions of subsection (iii) of Section 5.02.

                                   ARTICLE 9

                     Destruction - Fire or Other Casualty

     Section 9.01. If the Demised Premises shall be damaged by fire or other
casualty and if Tenant shall give prompt notice to Owner of such damage, Owner,
at Owner's expense, shall repair such damage. However, Owner shall have no
obligation to repair any damage to, or to replace, Tenant's Personal Property or
any other property or effects of Tenant. Except as otherwise provided in Section
9.03, if the entire Demised Premises shall be rendered untenantable by reason of
any such damage, the Fixed Rent shall abate for the period from the date of such
damage to the date when such damage shall have been repaired, and if only a part
of the Demised Premises shall be so rendered untenantable, the Fixed Rent shall
abate for such period in the proportion which the area of the part of the
Demised Premises so rendered untenantable bears to the total area of the Demised
Premises. In the event that so much of the Demised Premises shall be damaged or
destroyed that Tenant, in its opinion, reasonably exercised, determines that it
is unable to conduct business in the undamaged portion of the Demised Premises,
then it may move out of the entire Demised Premises until such time that enough
of the restoration work has been performed so as to permit Tenant to once again
conduct business in those portions of the Demised Premises which are undamaged
or restored, and solely during such time that Tenant has moved out of the entire
Demised Premises and until enough of the restoration work has been so performed,
in accordance with the foregoing provision of this sentence, the Fixed Rent
shall be fully abated. Tenant hereby expressly waives the provisions of Section
227 of the New York Real Property Law, and of any successor law of like import
then in force, and Tenant agrees that the provisions of this Article shall
govern and control in lieu thereof. Notwithstanding the foregoing provisions of
this Section, if, prior to or during the Demised Term, (i) the Demised Premises
shall be totally damaged to rendered wholly untenantable by fire or other
casualty, and if Owner shall decide not to restore the Demised Premises, or (ii)
the Building shall be so damaged by fire or other casualty that, in Owner's
opinion, substantial alteration, demolition, or reconstruction of the Building
shall be required whether or not the Demised Premises shall have been damaged or
rendered untenantable, then, in any of such
<PAGE>

                                       18

events, Owner, at Owner's option, may give to Tenant, within ninety (90) days
after such fire or other casually, a five (5) days notice of termination of
this, Lease and, in the event such notice is given, this Lease and the Demised
Term shall come to an end and expire (whether or not said term shall have
commenced) upon the expiration of said five (5) days with the same effect as if
the date of expiration of said five (5) days were the Expiration Date, the Fixed
Rent shall be apportioned as of such date and any prepaid portion of Fixed Rent
for any period after such date shall be refunded by Owner to Tenant.
Notwithstanding the foregoing, Owner may not exercise the option contained in
subdivision (ii) above unless Owner terminates, at the same time, substantially
all leases of substantially all the space in the Building.

     Section 9.02.  Owner shall attempt to obtain and maintain, throughout the
Demised Term, in Owner's fire insurance policies covering the Building,
provisions to the effect 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 loss occurring to the Building. In the event that at any time
Owner's fire insurance carriers shall exact an additional premium for the
inclusion of such or similar provisions, Owner shall give Tenant notice thereof.
In such event, if Tenant agrees, in writing, to reimburse Owner for such
additional premium for the remainder of the Demised Term, Owner shall require
the inclusion of such or similar provisions by Owner's fire insurance carriers.
As long as such or similar provisions are included in Owner's fire insurance
policies then in force, Owner hereby waives (i) any obligation on the part of
Tenant to make repairs to the Demised Premises necessitated or occasioned by
fire or other casualty that is an insured risk under such policies, and (ii) any
right of recovery against Tenant, any other permitted occupant of the Demised
Premises, and any of their servants, employees, agents or contractors, for any
loss occasioned by fire or other casualty that is an insured risk under such
policies. In the event that at any time Owner's fire insurance carriers shall
not include such or similar provisions in Owner's fire insurance policies, the
waivers set forth in the foregoing sentence shall, upon notice given by Owner to
Tenant, be deemed of no further force or effect. During any period while the
foregoing waiver of right of recovery is in effect, Owner shall look solely to
the proceeds of such policies to compensate Owner for any loss occasioned by
fire or other casualty which is an insured risk under such policies.

     Section 9.03.  Except to the extent expressly provided in Section 9.02,
nothing contained in this Lease shall relieve Tenant of any liability to Owner
or to its insurance carriers which Tenant may have under law or the provisions
of this Lease in connection with any damage to the Demised Premises or the
Building by fire or other casualty. Notwithstanding the provisions of Section
9.01, if any such damage, occurring after any date when the waivers set forth in
Section 9.02 are no longer in force and effect, is due to the fault or neglect
of Tenant, any person claiming through or under Tenant, or any of their
servants, employees, agents, contractors, visitors or licensees, then there
shall be no abatement of Fixed Rent by reason of such damage.

     Section 9.04.  Tenant acknowledges that it has been advised that Owner's
insurance policies do not cover Tenant's Personal Property or any other property
of Tenant in the Demised Premises; accordingly, it shall be Tenant's obligation
to obtain and maintain insurance covering its property in the Demised Premises
including, but not limited to, water legal liability insurance. Tenant shall
attempt to obtain and maintain, throughout the Demised Term, in Tenant's fire
and other insurance policies covering Tenant's Personal Property and other
property of Tenant in the Demised Premises, and Tenant's use and occupancy of
the Demised Premises, and/or Tenant's profits (and shall cause any other
permitted occupants of the Demised Premises to attempt to obtain and maintain,
in similar policies), provisions to the effect 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 loss occasioned by fire or other
casualty which is an insured risk under such policies. In the event that at any
time the insurance carriers issuing such policies shall exact an additional
premium for the inclusion of such or similar provisions, Tenant shall give Owner
notice thereof. In such event, if Owner agrees, in writing, to reimburse Tenant
or any person claiming through or under Tenant, as the case may be, for such
additional premium for the remainder of the Demised Term, Tenant shall require
the inclusion of such or similar provisions by such insurance carriers. As long
as such or similar provisions are included in such insurance policies then in
force, Tenant hereby waives (and agrees to cause any other permitted occupants
of the Demised Premises to execute and deliver to Owner written instruments
waiving) any right of recovery against Owner, any lessors under any ground or
underlying leases, any other tenants or occupants of the Building, and any
servants, employees, agents or contractors of Owner or of any such lessor, or of
any such other tenants or occupants, for any loss occasioned by fire or other
casualty which is an insured risk under such policies. In the event that at any
time such insurance carriers shall not include such or

<PAGE>

                                       19

similar provisions in any such insurance policy, the waiver set forth in the
foregoing sentence (or in any written instrument executed by any other permitted
occupant of the Demised Premises) shall, upon notice given by Tenant to Owner,
be deemed of no further force or effect with respect to any insured risks under
such policy from and after the giving of such notice. During any period while
any such waiver of right of recovery is in effect, Tenant, or any other
permitted occupant of the Demised Premises, as the case may be, shall look
solely to the proceeds of such policies to compensate Tenant or such other
permitted occupant for any loss occasioned by fire or other casualty which is an
insured risk under such policies.

     Section 9.06.  Owner and Tenant shall cooperate with the other's insurance
companies in the adjustment of any claims for any damage to the Building, the
Demised Premises or any of Tenant's Personal Property.

     Section 9.07.  Owner agrees, during the Demised Term, to obtain and keep in
full force and effect insurance against loss or damage by fire or other casualty
to the Building as may be insurable under then obtainable standard forms of
"risk" insurance policies in an amount equal to not less than the amount
sufficient to avoid coinsurance or eighty (80%) percent of the replacement value
of the Building exclusive of footings and foundations, whichever is greater.

                                  ARTICLE 10

                                Eminent Domain

     Section 10.01. If the whole of the Demised Premises shall be acquired for
any public or quasi-public use or purpose, whether by condemnation or by deed in
lieu of condemnation, this Lease and the Demised Term shall end as of the date
of the vesting of title with the same effect as if said date were the Expiration
Date. If only a part of the Demised Premises shall be so acquired or condemned
then, except as otherwise provided in this Section, this Lease and the Demised
Term shall continue in force and effect but, from and after the date of the
vesting of title, the Fixed Rent shall be reduced in the proportion which the
area of the part of the Demised Premises so acquired or condemned bears to the
total area of the Demised Premises immediately prior to such acquisition or
condemnation. If only a part of the Real Property shall be so acquired or
condemned, then (i) whether or not the Demised Premises shall be affected
thereby, Owner, at Owner's option, may give to Tenant, within sixty (60) days
next following the date upon which Owner shall have received notice of vesting
of title, a five (5) days' notice of termination of this Lease, and (ii) if the
part of the Real Property so acquired or condemned shall contain more than ten
(10%) per cent of the total area of the Demised Premises immediately prior to
such acquisition or condemnation, or if, by reason of such acquisition or
condemnation, Tenant no longer has reasonable means of access to the Demised
Premises, Tenant, at Tenant's option, may give to Owner, within sixty (60) days
next following the date upon which Tenant shall have received notice of vesting
of title, a five (5) days' notice of termination of this Lease. In the event any
such five (5) days' notice of termination is given, by Owner or Tenant, this
Lease and the Demised Term shall come to an end and expire upon the expiration
of said five (5) days with the same effect as if the date of expiration of said
five (5) days were the Expiration Date. If a part of the Demised Premises shall
be so acquired or condemned and this Lease and the Demised Term shall not be
terminated pursuant to the foregoing provisions of this Section, Owner, at
Owner's expense, shall restore that part of the Demised Premises not so acquired
or condemned to a self-contained rental unit. In the event of any termination of
this Lease and the Demised Term pursuant to the provisions of this Section, the
Fixed Rent shall be apportioned as of the date of such termination and any
prepaid portion of Fixed Rent for any period after such date shall be refunded
by Owner to Tenant.

     Section 10.02. In the event of any such acquisition or condemnation of all
or any part of the Real Property, Owner shall be entitled to receive the entire
award for any such acquisition or condemnation, Tenant shall have no claim
against Owner or the condemning authority for the value of any unexpired portion
of the Demised Term and Tenant hereby expressly assigns to Owner all of its
right in and to any such award. Nothing contained in this Section shall be
deemed to prevent Tenant from making a claim in any condemnation proceedings for
the value of any items of Tenant's Personal Property which are compensable, in
law, as trade fixtures, or provided that such claim is authorized by law and
will not in any way diminish the award to which Owner would be entitled if no
claim were made for Tenant's moving expenses.
<PAGE>

                                       20

                                  ARTICLE 11

                           Assignment and Subletting

     Section 11.01. Tenant, for itself, its heirs, distributees, executors,
administrators, legal representatives, successors and assigns, covenants that,
without the prior consent of Owner in each instance, it shall not (i) assign
whether by merger, consolidation or otherwise (except as otherwise herein
specifically provided) mortgage or encumber its interest in this Lease, in whole
or in part, or (ii) sublet, or permit the subletting of, the Demised Premises or
any part thereof, or (iii) permit the Demised Premises or any part thereof to be
occupied, or used for desk space, mailing privileges or otherwise, by any person
other than Tenant. The sale, pledge, transfer or other alienation of (a) any of
the issued and outstanding capital stock of any corporate Tenant (unless such
stock is publicly traded on a recognized security exchange or over-the-counter
market) if at the time of any such sale, pledge, transfer or other alienation
of any  such stock, the only major asset of Tenant shall be its interest in this
Lease, or (b) any interest in any partnership or joint venture Tenant, however
accomplished, and whether in a single transaction or in a series of related or
unrelated transactions, shall be deemed for the purposes of this Section as an
assignment of this Lease which shall require the prior consent of Owner in each
instance.

     Section 11.02. If Tenant's interest in this Lease is assigned, whether or
not in violation of the provisions of this Article, Owner may collect rent from
the assignee; if the Demised Premises or any part thereof are sublet to, or
occupied by, or used by, any person other than Tenant, whether or not in
violation of this Article, Owner, after default by Tenant under this Lease, may
collect rent from the subtenant, user or occupant. In either case, Owner shall
apply the net amount collected to the rents reserved in this Lease, but neither
any such assignment, subletting, occupancy, or use, whether with or without
Owner's prior consent, nor any such collection or application, shall be deemed a
waiver of any term, covenant or condition of this Lease or the acceptance by
Owner of such assignee, subtenant, occupant or user as tenant. The consent by
Owner to any assignment, subletting, occupancy or use shall not relieve Tenant
from its obligation to obtain the express prior consent of Owner to any further
assignment, subletting, occupancy or use. The listing of any name other than
that of Tenant on any door of the Demised Premises or on any directory or in any
elevator in the Building, or otherwise, shall not operate to vest in the person
so named any right or interest in this Lease or in the Demised Premises or the
Building, or be deemed to constitute, or serve as a substitute for, any prior
consent of Owner required under this Article, and it is understood that any such
listing shall constitute a privilege extended by Owner which shall be revocable
at Owner's will by notice to Tenant. Tenant agrees to pay to Owner reasonable
counsel fees incurred by Owner in connection with any proposed assignment of
Tenant's interest in this Lease or any proposed subletting of the Demised
Premises or any part thereof. Neither any assignment of Tenant's interest in
this Lease nor any subletting, occupancy or use of the Demised Premises or any
part thereof by any person other than Tenant, nor any collection of rent by
Owner from any person other than Tenant as provided in this Section, nor any
application of any such rent as provided in this Section shall, in any
circumstances, relieve Tenant of its obligation fully to observe and perform the
terms, covenants and conditions of this Lease on Tenant's part to be observed
and performed.

     Section 11.03. A. As long as Tenant is not in default under any of the
terms, covenants or conditions of this Lease on Tenant's part to be observed or
performed beyond any applicable grace period, Tenant shall have the right to
give notice to Owner (referred to as a "Tenant's Section 11.03 Sublet Notice")
of Tenant's intention to sublet all or any part of the Demised Premises (the
space which Tenant intends to sublet is referred to in this Section as the
"Section 11.03 Sublet Space"), which notice shall set forth the proposed
commencement and expiration dates of the term of such intended subletting (and,
if the Section 11.03 Sublet Space, or any portion thereof, shall constitute less
than an entire floor, such notice shall be accompanied by a floor plan
delineating such Section 11.03 Sublet Space or portion thereof). The Section
11.03 Sublet Space covered by any one (1) or more Tenant's Section 11.03 Sublet
Notice given in any consecutive twelve (12) month period shall not be comprised
of or aggregate more than three (3) entire floors of the Demised Premises unless
such Section 11.03 Sublet Space shall be comprised of contiguous floors.

     B.   Within a period of one hundred eighty (180) days after the giving of
Tenant's Section 11.03 Sublet Notice, if the Section 11.03 Sublet Space shall
contain all or substantially all of the Demised Premises, Owner, at Owner's
option, may give to Tenant, a notice terminating this Lease on the date
(referred to as the "Earlier Termination Date") immediately prior to the
proposed commencement date set forth in Tenant's Section 11.03 Sublet Notice,
<PAGE>

                                       21

and, in the event such notice is given, this Lease and the Demised Term shall
come to an end and expire on the Earlier Termination Date with the same effect
as if it were the Expiration Date, the Fixed Rent shall be apportioned as of the
Earlier Termination Date and any prepaid portion of Fixed Rent for any period
after such date shall be refunded by Owner to Tenant. Within a period of either
(1) thirty (30) days after the giving of Tenant's Section 11.03 Sublet Notice if
the Section 11.03 Sublet Space shall contain not more than one (1) entire floor
of the Demised Premises, or (2) ninety (90) days after the giving of Tenant's
Section 11.03 Sublet Notice if the Section 11.03 Sublet Space shall contain more
than one (1) floor up to and including the lesser of (a) 99,999 rentable square
feet or (b) seventy four and 99/100 (74.99%) percent of the space then leased to
Tenant under this Lease, or (3) one hundred eighty (180) days after the giving
of Tenant's Section 11.03 Sublet Notice, if the Section 11.03 Sublet Space shall
contain more than the lesser of (aa) 100,000 rentable square feet or (bb)
seventy five (75%) percent of the space then leased to Tenant under this Lease,
as the case may be, Owner, at Owner's option, may give to Tenant a notice
(referred to as a "Section 11.03 Elimination Notice") electing to eliminate the
Section 11.03 Sublet Space (after the giving of such notice, such Space is
referred to as the "Eliminated Space") from the Demised Premises during the
period (referred to as the "Elimination Period") commencing on the date fixed by
Owner in such Section 11.03 Elimination Notice (referred to as the "Elimination
Date") which date may be any date between the date which is one (1) month prior
to and the date which is three (3) months subsequent to the proposed
commencement date set forth in Tenant's Section 11.03 Sublet Notice, both
inclusive, which date shall, in any event, not be earlier than the date next
following the expiration of the applicable thirty (30) day, ninety (90) day or
one hundred eighty (180) day period set forth in subdivisions (l), (2) and (3)
above, and ending on the date fixed by Landlord in such Section 11.03
Elimination Notice, which date may be any date between the date which is three
(3) months prior to and the date which is three (3) months subsequent to the
proposed expiration date set forth in Tenant's Section 11.03 Sublet Notice, both
inclusive. In the event any Section 11.03 Elimination Notice shall be given, the
provisions of Section 11.04 shall apply to the Eliminated Space.

     C.   If, at the expiration of the applicable thirty (30) day, ninety (90)
day or one-hundred eighty (180) day period set forth in subsection B of this
Section 11.03, (1) Owner shall not have given a notice terminating this Lease or
a Section 11.03 Elimination Notice, and (2) Tenant is not in default under any
of the terms, covenants or conditions of this Lease on Tenant's part to be
observed or performed beyond any applicable grace period for the curing of any
such default, Owner agrees thereafter not unreasonably to withhold its prior
consent to a subletting by Tenant of the Section 11.03 Sublet Space. Without
Owner's prior consent, Tenant shall not (x) negotiate or enter into a proposed
subletting with any tenant, subtenant or occupant of any space in the Building
(other than any then subtenant of Tenant) if at such time there is vacant space
or space available for leasing in the Building unless such vacant space or space
available for leasing contains substantially fewer rentable square feet than
contained in the proposed sublet space or (xx) list or otherwise publicly
advertise the Demised Premises or any part thereof for subletting at a rental
lower than the higher of (i) the rental then in effect, under this Lease, or
(ii) the rental at which Owner is then offering to rent comparable space in the
Building. Any such subletting shall be (a) for substantially the same term set
forth in Tenant's Section 11.03 Sublet Notice, (b) for undivided occupancy by
the subtenant of that part of the Demised Premises affected thereby, and (c) for
the use permitted in this Lease, and at no time shall there be more than four
(4) occupants, including Tenant, on any one (1) floor. At least thirty (30) days
prior to any such proposed subletting, Tenant shall submit to Owner a statement
containing the name and address of the proposed subtenant and all of the
principal terms and conditions of the proposed subletting including, but not
limited to, the proposed commencement and expiration dates of the term thereof,
and unless the Section 11.03 Sublet Space shall constitute an entire floor or
floors, such statement shall be accompanied by a floor plan delineating the
proposed sublet area. Owner may, however, withhold such consent if, the Owner's
reasonable judgment, (i) the occupancy of the proposed subtenant will tend to
impair the character or dignity of the Building or impose any additional
material burden upon Owner in the operation of the Building, or (ii) Owner shall
have any other reasonable objection to the proposed subletting. In the event of
any dispute between Owner and Tenant as to the reasonableness of Owner's refusal
to consent to any such proposed subletting. such dispute shall be determined by
arbitration in accordance with the provisions of Article 36.

     D.   The covenant of Owner contained in subsection C of this Section 11.03
not unreasonably to withhold its consent to a proposed subletting by Tenant of
the Section 11.03 Sublet Space shall apply only for a period of (a) one hundred
eighty (180) days next following the expiration of the thirty (30) day period,
(b) one hundred eighty (180) days next following the expiration of the ninety
(90) day period, or (c) one (1) year next following the expiration of the one
hundred eighty (180) day period, set forth in subsection B of this Section
11.03 and shall not
<PAGE>

                                       22

apply after the expiration of such one-hundred eighty (180) day or one (l) year
period, as the case may be, subject, however, to Tenant's right to give to Owner
another Tenant's Section 11.03 Sublet Notice pursuant to the provisions of
subsection A of this Section 11.03, provided, however, that in the event Tenant
gives to Owner another Tenant's Section 11.03 Sublet Notice, for the same
Section 11.03 Sublet Space, pursuant to the provisions of subsection A of this
Section 11.03 immediately following the expiration of such one-hundred eighty
(180) day or one (1) year period, as the case may be, the time periods set forth
in subsection B of this Section 11.03 for Owner to give a notice terminating
this Lease or a Section 11.03 Elimination Notice shall be deemed reduced to
thirty (30) day s.

     Section 11.04.  A. In the event any Section 11.03 Elimination Notice shall
be given by Owner (i) the Eliminated Space shall be eliminated from the Demised
Premises during the Elimination Period; (ii) Tenant shall surrender the
Eliminated Space to Owner on or prior to the Elimination Date in the same manner
as if said Date were the Expiration Date; (iii) if the Eliminated Space shall
constitute less than an entire floor, (a) Owner, at Owner's expense, shall have
the right to make any alterations and installations in the Demised Premises
required, in Owner's judgment, reasonably exercised, to make the Eliminated
Space a self-contained rental unit with access through corridors to the
elevators and core toilets serving the Eliminated Space, and if the Demised
Premises shall contain any core toilets or any corridors (including any
corridors proposed to be constructed by Owner pursuant to this subdivision
[iii]), providing access from the Eliminated Space to the core area, (b) Owner
and any tenant or other occupant of the Eliminated Space shall have the right to
use such toilets and corridors in common with Tenant and any other permitted
occupants of the Demised Premises, and the right to install signs and
directional indicators reasonably satisfactory to Tenant in or about such
corridors indicating the name and location of such tenant or other occupant;
(iv) during the Elimination Period, the Fixed Rent and Tenant's Proportionate
Share (as defined in Article 23), shall each be reduced in the proportion which
the area of the Eliminated Space bears to the total area of the Demised Premises
immediately prior to the Elimination Date (including an equitable portion of the
area of any corridors referred to in subdivision (iii) of this sentence as part
of the area of the Eliminated Space for the purpose of computing such
reduction), and any prepaid portion of Fixed Rent for any period after the
Elimination Date allocable to the Eliminated Space shall be refunded by Owner to
Tenant and in the event that the Eliminated Space shall be the entire Demised
Premises, during the Elimination Period, Tenant shall have no rights with
respect to the Demised Premises nor any obligations with respect to the Demised
Premises, including, but not limited to, any obligations to pay Fixed Rent or
any increases therein or any additional rent, (v) there shall be an equitable
apportionment of any increase in the Fixed Rent pursuant to Articie 23 for the
Operating Year and Tax Year (as defined in Article 23) in which said
Elimination Date shall occur; (vi) if the Elimination Period shall end prior to
the Expiration Date, the Eliminated Space, in its then existing condition, shall
be deemed restored to and once again a part of the Demised Premises during the
period (referred to as the "Restoration Period") commencing on the date next
following the expiration of the Elimination Period and ending on the Expiration
Date, except in the event that Owner is unable to give Tenant possession of the
Eliminated Space at the expiration of the Elimination Period by reason of the
holding over or retention of possession of any tenant or other occupant, in
which event (x) the Restoration Period shall not commence, and the Eliminated
Space shall not be deemed restored to or a part of the Demised Premises, until
the date upon which Owner shall give Tenant possession of such Space free of
occupancies, (y) neither the Expiration Date nor the validity of this Lease
shall be affected, and (z) Tenant waives any rights under Section 223-a of the
Real Property Law of New York, or any successor statute of similar import, to
rescind this Lease and further waives the right to recover any damages from
Owner which may result from the failure of Owner to deliver possession of the
Eliminated Space at the end of the Elimination Period; (vii) during the
Restoration Period, if any, the Fixed Rent and Tenant's Proportionate Share,
shall each be increased in the proportion which the area of the Eliminated Space
bears to the total area of the Demised Premises immediateiy prior to the
commencement of the Restoration Period (including an equitable portion of the
area of any corridors referred to in subdivision (iii) of this sentence as a
part of the area of the Eliminated Space for the purpose of computing such
increase) and in the event that the Eliminated Space shall be the entire Demised
Premises, during the Restoration Period, the Demised Premises, in its then
existing condition, shall be deemed restored to Tenant and Tenant shall have all
rights with respect to the Demised Premises which are set forth in this Lease
and all obligations with respect to the Demised Premises which are set forth in
this Lease, including, but not limited to, the obligations for the payment of
Fixed Rent and any increases therein and any additional rent (as they would have
been adjusted if the payment of Fixed Rent and any increases therein and any
additional rent (as they would have been adjusted if Tenant occupied the Demised
Premises during the Elimination Period); and (viii) there shall be an equitable
<PAGE>

                                       23

apportionment of any increase in the Fixed Rent pursuant to Article 23 for the
Escalation Year and Tax Escalation Year in which the Restoration Period, if any,
shall commence; however, notwithstanding the foregoing, Owner and Tenant
acknowledge the possibility that all or any of the tenants or cccupants of the
Eliminated Space may not have vacated and surrendered all or any portions of the
Eliminated Space to Owner by the commencement of the Restoration Period;
accordingly, notwithstanding anything to the contrary contained in the foregoing
provisions of this Section, (1) the Restoration Period applicable to the
Eliminated Space shall commence on the commencement of the Restoration Period
with respect to those portions, if any, of the Eliminated Space which are vacant
on the commencement of the Restoration Period and with respect to those
portions, if any, of the Eliminated Space which are not vacant on the
commencement of the Restoration Period on the respective later date or dates
upon which such portions of the Eliminated Space become vacant and Owner gives
notice to Tenant of such vacancy and the Expiration Date shall not be affected
thereby, the increases in the Fixed Rent and Tenant's Proportionate Share shall
be equitably adjusted to reflect the fact that all or any portions of the
Eliminated Space have not been restored to Tenant on the commencement of the
Restoration Period but are restored to Tenant and included back in the Demised
Premises on a date or dates after the commencement of the Restoration Period and
(2) except as set forth in this sentence, neither the validity of this Lease nor
the obligations of Tenant under this Lease shall be affected thereby and (3)
Tenant waives any right to rescind this Lease and to recover any damages from
Owner which may result from the failure of Owner to deliver possession of all or
any portions of the Eliminated Space on the commencement of the Restoration
Period and Owner shall institute, within twenty (20) days after the commencement
of the Restoration Period, possession proceedings against any tenants and
occupants who have not so vacated and surrendered all or any portions of the
Eliminated Space, and shall prosecute such proceedings with reasonable
diligence. Upon the commencement date of the Restoration Period Owner agrees to
make any repairs required to be made by Owner pursuant to the provisions of
subdivision (ii) of Section 5.02.

     B.   At the request of Owner, Tenant shall execute and deliver an
instrument or instruments, in form reasonably satisfactory to Owner, setting
forth any modifications to this Lease contemplated in or resulting from the
operation of the provisions of this Section and Section 11.03; however, neither
Owner's failure to request any such instrument nor Tenant's failure to execute
or deliver any such instrument shall vitiate the effect of the provisions of
this Section and Section 11.03. The failure by Owner to exercise its option
under Section 11.03 with respect to any subletting shall not be deemed a waiver
of such option with respect to any extension of such subletting or any
subsequent subletting of the premises affected thereby or any other portion of
the Demised Premises.

     C.   Owner and Tenant agree that it is the intention of the parties that
(x) one-half (1/2) of any increase in the rental value of the Demised Premises
over and above the Fixed Rent payable pursuant to the provisions of this Lease,
as such Fixed Rent may be increased from time to time pursuant to the provisions
of this Lease, and (y) one-half (1/2) of any consideration paid to Tenant or any
subtenant or other person claiming through or under Tenant in connection with an
assignment of the Tenant's interest in this Lease or the interest of any
subtenant or other person claiming through or under Tenant under any sublease
whether or not such assignment shall be effected with court approval in a
proceeding of the types described in subsection 16.01(c) or (d), or in any
similar proceeding, or otherwise, except pursuant to Sections 11.06 and 11.07,
shall accrue to the benefit of Owner and not to the benefit of Tenant, or of any
subtenant or other person claiming through or under Tenant, or of the creditors
of Tenant or of any such subtenant or other person claiming through or under
Tenant. Accordingly, it is agreed that if Owner shall fail to exercise its
option to sooner terminate this Lease in connection with any proposed subletting
by Tenant of all or substantially all of the Demised Premises, or its option to
eliminate all or any portion thereof in connection with any proposed subletting
by Tenant of all or any portion of the Demised Premises, or if any subtenant or
other person claiming through or under Tenant shall sublet all or any portion of
the Demised Premises, Tenant shall pay to Owner a sum equal to one-half (1/2)
of any Subletting Profit, as such term is hereinafter defined. All rentals and
other sums paid by any subtenant to Tenant or to any subtenant or other person
claiming through or under Tenant in connection with (i) any subletting of the
entire Demised Premises in excess of the Fixed Rent then payable by Tenant to
Owner under this Lease, or (ii) any subletting of a portion of the Demised
Premises in excess of that proportion of the Fixed Rent payable by Tenant to
Owner under this Lease which the area of the portion of the Demised Premises so
sublet bears to the total area of the Demised Premises, are referred to, in the
aggregate as "Subletting Profit"; in computing any Subletting Profit with
respect to any period of time shall be deducted an amount applicable to such
period for amortization, on a
<PAGE>

                                      24

straight line basis for the term of the sublease in question, of (i) brokerage
commissions, if any such commission shall be paid by Tenant or any such
subtenant or other person claiming through or under Tenant in connection with
such subletting, (ii) attorney's fees paid by Tenant or any such subtenant or
other person claiming through or under Tenant in connection with such
subletting, (iii) advertising expenses paid by Tenant or any such subtenant or
other person claiming through or under Tenant in connection with such
subletting, (iv) rent abatements granted by Tenant to such subtenant, (v)
allowances for alterations to the premises affected by such sublease referred to
as the "Sublet Space") granted by Tenant to such subtenant, (vi) costs paid by
Tenant or any such subtenant or other person claiming through or under Tenant in
making alterations in the Sublet Space; (vii) Fixed Rent paid by Tenant
applicable to the Sublet Space during the period (referred to as the "Deduction
Period") commencing on the date next following the date on which Tenant has
listed the Sublet Space with real estate brokers, advertised or otherwise
actively marketed the Sublet Space and ending on the commencement date of such
sublease, provided, however, that the Sublet Space shall be vacant at all times
during such Deduction Period and the Fixed Rent applicable to the Sublet Space
for the first sixty (60) days that the Sublet Space shall be vacant shall not be
deducted in determining any Sublet Profit, and (viii) an annual charge for
interest upon the unamortized or undepreciated portions of the foregoing items
referred to in subdivisions (i) through (vii) at the average prime rate during
the year in question. Owner and Tenant agree that if Tenant, or any subtenant or
other person claiming through or under Tenant, shall assign or have assigned its
interest as Tenant under this Lease or its interest as subtenant under any
sublease, as the case may be, whether or not such assignment shall be effected
with court approval in a proceeding of the types described in subsections 16.01
(c) or (d), or in any similar proceeding, or otherwise, except pursuant to
Sections 11.06 or 11.07, Tenant shall pay to Owner a sum equal to one-half (1/2)
of any consideration paid to Tenant or any subtenant or other person claiming
through or under Tenant for such assignment after taking into account any of the
expenses referred to in subdivisions (i), (ii), (iii), (iv), (vi), (vii) and
(viii) above applicable to an assignment. All sums payable hereunder by Tenant
shall be paid to Owner as additional rent immediately upon such sums becoming
payable to Tenant or to any subtenant or other person claiming through or under
Tenant and, if requested by Owner, Tenant shall promptly enter into a written
agreement with Owner setting forth the amount of such sums to be paid to Owner;
however, neither Owner's failure to request the execution of such agreement nor
Tenant's failure to execute such agreement shall vitiate the provisions of this
subsection C. In the event that any subtenant or assignee fails to pay any such
consideration to Tenant, Tenant shall have no obligation to pay such sums to
Owner and Tenant's failure to pay any such sums shall not constitute an Event of
Default under this Lease. Notwithstanding the provisions of the foregoing
sentence, Tenant shall promptly commence and diligently prosecute legal
proceedings against such subtenant or assignee to collect such consideration and
promptly after collection of such consideration shall pay same to Owner in
accordance with the provisions of this subdivision C after deducting reasonable
costs and expenses of collection, including but not limited to attorney's fees,
and failure to commence and diligently prosecute such legal proceedings, or
promptly pay such consideration to Owner after collection shall constitute an
Event of Default under this Lease. Notwithstanding the foregoing provisions of
this subsection C to the contrary, in the event Tenant moves, or plans to move,
its major headquarter offices out of the City of New York, then, the words "one-
half (1/2)" wherever appearing in the foregoing provisions of this subsection C
shall be deemed deleted therefrom and the words "one-hundred (lOO%) percent"
substituted in lieu thereof effective as of the date of such move or plan to
move. For the purposes of this subsection C, a trustee, receiver or other
representative of the Tenant's or any subtenant's estate under any federal or
state bankruptcy act shall be deemed a person claiming through or under Tenant.
Neither Owner's consent to any subletting nor anything contained in this Section
and Section 11.03 shall be deemed to grant to any subtenant or other person
claiming through or under Tenant the right to sublet all or any portion of the
Demised Premises or to permit the occupancy of all or any portion of the Demised
Premises by others. Neither any subtenant referred to in this Section and
Section 11.03 nor its heirs, distributees, executors, administrators, legal
representatives, successors nor assigns, without the prior consent of Owner in
each instance, shall (i) assign, whether by merger, consolidation or otherwise,
mortgage or encumber its interest in any sublease, in whole or in part, or (ii)
sublet, or permit the subletting of, that part of the Demised Premises affected
by such subletting or any part thereof, or (iii) permit such part of the Demised
Premises affected by such subletting or any part thereof to be occupied or used
for desk space, mailing privileges or otherwise, by any person other than such
subtenant and any sublease shall provide that any violation of the foregoing
provisions of this sentence shall be an event of default thereunder. The sale,
pledge, transfer or other alienation of (a) the issued and outstanding capital
stock of any corporate subtenant (unless such stock is publicly traded on any
recognized security exchange or over-the-counter market) or (b) any interest in
any partnership or joint venture subtenant,

<PAGE>

                                      25

however accomplished, and whether in a single transaction or in a series of
related or unrelated transactions, shall be deemed for the purposes of this
Article as an assignment of such sublease which shall require the prior consent
of Owner in each instance and any sublease shall so provide.

     Section 11.05. In the event that, at any time after Tenant may have
assigned Tenant's interest in this Lease, this Lease shall be disaffirmed or
rejected in any proceeding of the types described in subsections 16.01(c) and
(d), or in any similar proceeding, or in the event of termination of this Lease
by reason of any such proceeding or by reason of lapse of time following notice
of termination given pursuant to Section 16.01 based upon any of the Events of
Default set forth in said subsections, Tenant, upon request of Owner given
within thirty (30) days next following any such disaffirmance, rejection or
termination (and actual notice thereof to Owner in the event of a disaffirmance
or rejection or in the event of termination other than by act of Owner), shall
(i) pay to Owner all Fixed Rent, additional rent and other charges due and owing
by the assignee to Owner under this Lease to and including the date of such
disaffirmance, rejection or termination, and (ii) as "tenant", enter into a new
lease with Owner of the Demised Premises for a term commencing on the effective
date of such disaffirmance, rejection or termination and ending on the
Expiration Date unless sooner terminated as in such lease provided, at the same
Fixed Rent and then executory terms, covenants and conditions as are contained
in this Lease, except that (a) Tenant's rights under the new lease shall be
subject to the possessory rights of the assignee under this Lease and the
possessory rights of any person claiming through or under such assignee or by
virtue of any statute or of any order of any court, and (b) such new lease shall
require all defaults existing under this Lease to be cured by Tenant with due
diligence, and (c) such new lease shall require Tenant to pay all increases in
the Fixed Rent reserved in this Lease which, had this Lease not been so
disaffirmed, rejected or terminated, would have accrued under the provisions
of Article 23 of this Lease after the date of such disaffirmance, rejection or
termination with respect to any period prior thereto. In the event Tenant shall
default in its obligation to enter into said new lease for a period of ten (10)
days next following Owner's request therefor, then, in addition to all other
rights and remedies by reason of such default, either at law or in equity, Owner
shall have the same rights and remedies against Tenant as if Tenant had entered
into such new lease and such new lease had thereafter been terminated as at the
commencement date thereof by reason of Tenant's default thereunder. Nothing
contained in this Section shall be deemed to grant to Tenant any right to assign
Tenant's interest in this Lease.

     Section 11.06. If Tenant is a corporation, Tenant shall have the
privilege, without the consent of Owner to assign its interest in this Lease to
any corporation which is a successor to Tenant either by merger or consolidation
or purchase of all or substantially all of the assets, business and goodwill
of Tenant, provided that such successor shall continue to operate in the Demised
Premises the business conducted by Tenant in the Demised Premises on or about
the Commencement Date. However, no such assignment shall be valid unless,
within ten (10) days after the execution thereof, Tenant shall deliver to
Owner (i) a duplicate original instrument of assignment in form and substance
satisfactory to Owner, duly executed by Tenant, and (ii) an instrument in form
and substance satisfactory to Owner, duly executed by the assignee, in which
such assignee shall assume observance and performance of, and agree to be
personally bound by, all of the terms, covenants and conditions of this Lease on
Tenant's part to be observed and performed.

     Section 11.07. A. As long as Tenant is not in default under any of the
terms, convenants or conditions of this Lease on Tenant's part to be observed
and performed beyond any applicable grace period for the curing of any such
default, Tenant shall have the right, without the prior consent of Owner, to
assign its interest in this Lease, for the use permitted in this Lease, to any
subsidiary or affiliate of Tenant named herein, which is in the same general
line of business as Tenant named herein and only for such period as it shall
remain such subsidiary or affiliate. For the purposes of this Article: (a) a
"subsidiary" of Tenant named herein shall mean any corporation not less than
fifty-one (51%) percent of whose outstanding voting stock at the time shall be
owned by Tenant named herein, and (b) an "affiliate" of Tenant named herein
shall mean any corporation, partnership or other business entity which controls
or is controlled by, or is under common control with Tenant named herein. For
the purpose of the definition of "affiliate" the word "control" (including
"controlled by" and "under common control with") as used with respect to any
corporation, partnership or other business entity, shall mean the possession of
the power to direct or cause the direction of the management and policies of
such corporation, partnership or other business entity, whether through the
ownership of voting securities or contract. No such assignment shall be valid or
effective unless, within ten (10) days after the execution thereof, Tenant shall
deliver to Landlord (I) a duplicate original instrument of assignment, in form
and substance reasonably satisfactory to Owner, duly
<PAGE>

                                      26

executed by Tenant, in which Tenant shall (a) waive all notices of default given
to the assignee, and all other notices of every kind or description now or
hereafter provided in this Lease, by statute or rule of law, and (b) acknowledge
that Tenant's obligations with respect to this Lease shall not be discharged,
released or impaired by (i) such assignment, (ii) any amendment or modification
of this Lease, whether or not the obligations of Tenant are increased thereby,
(iii) any further assignment or transfer of Tenant's interest in this Lease,
(iv) any exercise, non-exercise or waiver by Landlord of any right, remedy,
power or privilege under or with respect to this Lease, (v) any waiver, consent,
extension, indulgence or other act or omission with respect to any other
obligations of Tenant under this Lease, (vi) any act or thing which, but for the
provisions of such assignment, might be deemed a legal or equitable discharge of
a surety or assignor, to all of which Tenant shall consent in advance, and (c)
expressly waive and surrender any then existing defense to its liability
hereunder it being the purpose and intent of Owner and Tenant that the
obligations of Tenant hereunder as assignor shall be absolute and unconditional
under any and all circumstances, and (II) an instrument, in form and substance
reasonably satisfactory to Owner, duly executed by the assignee, in which such
assignee shall assume the observance and performance of, and agrees to be
personally bound by, all of the terms, covenants and conditions of this Lease on
Tenant's part to be observed and performed.

     B. As long as Tenant is not in default under any of the terms, covenants or
conditions of this Lease on Tenant's part to be observed and performed beyond
any applicable grace period for the curing of any such default, Tenant shall
have the right without the prior consent of Owner, to sublet to, or permit the
use or occupancy of, all or any part of the Demised Premises by any subsidiary
or affiliate (as said terms are defined in Section 11.07.A) of Tenant named
herein for the use permitted in this Lease provided that such subsidiary or
affiliate is in the same general line of business as the Tenant named herein and
only for such period as it shall remain such subsidiary or affiliate and in the
same general line of business as the Tenant named herein. However, no such
subletting shall be valid unless, prior to the execution thereof, Tenant shall
give notice to Owner of the proposed subletting, and within ten (10) days after
the execution thereof, Tenant shall deliver to Owner an agreement, in form and
substance reasonably satisfactory to Owner, duly executed by Tenant and said
subtenant, in which said subtenant shall assume performance of and agree to be
personally bound by, all of the terms, covenants and conditions of this Lease
which are applicable to said subtenant and such subletting. Tenant shall give
prompt notice to Owner of any such use or occupancy, and such use or occupancy
shall be subject and subordinate to all of the terms, covenants and conditions
of this Lease. No such use or occupancy shall operate to vest in the user or
occupant any right or interest in this Lease or the Demised Premises. For the
purpose of determining the number of subtenants or occupants in the Demised
Premises, the occupancy of any such permitted subsidiary or affiliate of Tenant
shall be deemed the occupancy of Tenant and such subsidiary or affiliate shall
not be counted as a subtenant or occupant for the purposes of subsection C of
Section 11.03, and the provisions of subsection B of Section 11.03 relating to
Owner's option to eliminate portions of the Demised Premises and the provisions
of subsection C of Section 11.04 relating to Subletting Profit shall not be
applicable to any proposed subletting to any such subsidiary or affiliate of
Tenant pursuant to the provisions of this Section.

                                  ARTICLE 12

                         Owner's Initial Construction

     Section 12.01. Owner agrees to perform work and make installations in the
Demised Premises (a) as set forth in Paragraph I of Schedule A and (b) as
designated on Tenant's Plan referred to in Schedule A. Such work and
installations are referred to as "Owner's Initial Construction". All of the
terms, covenants and conditions of Schedule A are incorporated in this Lease by
reference and shall be deemed a part of this Lease as though fully set forth in
the body of this Lease.

                                  ARTICLE 13

                 Access To Demised Premises; Name of Building

     Section 13.01. Owner and its agents shall have the following rights in and
about the Demised Premises: (i) to enter the Demised Premises at all times to
examine the Demised Premises or for any of the purposes set forth in this
Article or for the purpose of performing any obligation of Owner under this
Lease or exercising any right or
<PAGE>

                                      27

remedy reserved to Owner in this Lease, and if Tenant, its officers, partners,
agents or employees shall not be personally present or shall not open and permit
an entry into the Demised Premises at any time when such entry shall be
necessary, to use a master key or to forceably enter the Demised Premises; (ii)
to erect, install, use and maintain pipes, ducts and conduits in and through the
Demised Premises; (iii) to exhibit the Demised Premises to others; (iv) to make
such repairs, alterations, improvements or additions, or to perform such
maintenance, including, but not limited to, the maintenance of all heating, air
conditioning, elevator, plumbing, electrical and other mechanical facilities, as
Owner may deem necessary or desirable; (v) to take all materials into and upon
the Demised Premises that may be required in connection with any such
decorations, repairs, alterations, improvements, additions or maintenance; and
(vi) to alter, renovate and decorate the Demised Premises at any time during the
Demised Term if Tenant shall have removed all or substantially all of Tenant's
property from the Demised Premises. The lessors under any ground or underlying
lease and the holders of any mortgages affecting any such ground or underlying
leases or the Building or the Real Property shall have the right to enter the
Demised Premises from time to time through their respective employees, agents,
representatives and architects to inspect the same or to cure any default of
Owner or Tenant relating thereto. Owner shall have the right, from time to time,
to change the number or designation by which the Building is commonly known.
Owner will name the Building the "D'Arcy Masius Benton & Bowles" or "DMB&B"
Building and will place appropriate plaques on the exterior of the Building to
indicate such name employing Tenant's existing logotype. The size, type and
location of such plaque shall be in Owner's sole discretion, provided, however,
Owner agrees that such a plaque shall be located near any main entrance to the
Building lobby. Notwithstanding the foregoing, in the event D'Arcy Masius Benton
& Bowles, Inc., a subsidiary or affiliate pursuant to Section 11.07 or successor
corporation pursuant to Section 11.06. in contradistinction to subtenants or
other occupants, no longer occupies at least 250,000 rentable square feet of the
Building or the number of rentable square feet contained in the floors
originally to be leased by Tenant pursuant to the provisions of Section 1.01, as
the same may be adjusted pursuant to the provisions of Article 37, Owner shall
have the right to revoke such naming of the Building, remove any such plaque and
name the Building after any other tenant. During such time as the Building is
named after Tenant, Owner agrees that it will not permit any other tenant to
maintain a sign in the lobby of the Building if a reasonable man could interpret
such sign to mean that any such other tenant has a greater presence in the
Building than Tenant's presence in the Building. In the event Owner wishes to
rename the Building in accordance with the provisions of this Section 13.01,
Owner agrees that provided Tenant, in contradistinction to subtenants or other
occupants, at the time of such renaming, occupies at least 100,000 rentable
square feet of the Building, Owner shall not name the Building after (i) any
other tenant of the Building which occupies fewer rentable square feet than the
rentable square feet then occupied by Tenant, in contradistinction to subtenants
or other occupants, or (ii) any advertising agency.

     Section 13.02. All parts (except surfaces facing the interior of the
Demised Premises) of all walls, windows and doors bounding the Demised Premises
(including exterior Building walls, core corridor walls, doors and entrances),
all balconies, terraces and roofs adjacent to the Demised Premises, all space in
or adjacent to the Demised Premises used for shafts, stacks, stairways, chutes,
pipes, conduits, ducts, fan rooms, heating, air conditioning, plumbing.
electrical, telecommunication and other mechanical facilities, closets, service
closets and other Building facilities, and the use thereof, as well as access
thereto through the Demised Premises for the purposes of operation, maintenance,
alteration and repair, are hereby reserved to Owner. Owner also reserves the
right at any time to change the arrangement or location of entrances,
passageways, doors, doorways, corridors, elevators, stairs, toilets and other
public parts of the Building, provided any such change does not permanently and
unreasonably obstruct Tenant's access to the Demised Premises. Nothing contained
in this Article shall impose any obligation upon Owner with respect to the
operation, maintenance, alteration or repair of the Demised Premises or the
Building.

     Section 13.03. Owner and its agents shall have the right to permit access
to the Demised Premises, whether or not Tenant shall be present, to any
receiver, trustee, assignee for the benefit of creditors, sheriff, marshal or
court officer entitled to, or reasonably purporting to be entitled to, such
access for the purpose of taking possession of, or removing, any property of
Tenant or any other occupant of the Demised Premises, or for any other lawful
purpose, or by any representative of the fire, police, building, sanitation or
other department of the City, State or Federal Governments. Neither anything
contained in this Section, nor any action taken by Owner under this Section,
shall be deemed to constitute recognition by Owner that any person other
than Tenant has any right or interest in this Lease or the Demised Premises.
<PAGE>

                                      28

     Section 13.04.  The exercise by Owner or its agents or by the lessor under
any ground or underlying lease or the holder of any mortgage affecting the
Building or the Real Property of any right reserved in this Article shall not
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of rent, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Owner, or its agents,
or upon any lessor under any ground or underlying lease or upon the holder of
any such mortgage, by reason of inconvenience or annoyance to Tenant, or injury
to or interruption of Tenant's business, or otherwise. Notwithstanding the
foregoing provisions of this Section, if the exercise of any right reserved in
this Article results in all or any part of the Demised Premises being rendered
untenantable and Owner receives insurance proceeds under its rent insurance
policy in connection therewith, then the Fixed Rent shall abate in an amount
equal to the insurance proceeds collected by Owner, as aforesaid.

     Section 13.05.  Supplementing the provisions of Sections 13.01 and 13.02,
Owner agrees that except in cases of emergency, any entry upon the Demised
Premises pursuant to the provisions of said Sections shall be made at reasonable
times, and only after reasonable advance notice (which may be mailed, delivered
or left at the Demised Premises, notwithstanding any contrary provisions of
Article 27), and any work performed or installations made pursuant to said
Sections shall be made with reasonable diligence and any such entry, work or
installations shall be made in a manner designed to minimize interference with
Tenant's normal business operations (however, nothing contained in this
Sections shall be deemed to impose upon Owner any obligation to employ
contractors or labor at overtime and other premium pay rates, except in cases of
an emergency).

     Section 13.06.  Further supplementing the provisions of Section 13.01,
Owner's right to exhibit the Demised Premises to others shall be limited to
insurance carriers and representatives, prospective purchasers of the Real
Property, the Building, or Owner's interest in the Ground and Development Rights
Lease, holders or prospective holders of any mortgage affecting the Real
Property, or the Building or any ground or underlying lease, and other
legitimate business visitors, and, during the last year of the Demised Term, any
prospective tenants of the Demised Premises.

     Section 13.07.  Further supplementing the provisions of Section 13.01,
Owners agrees that any pipes, ducts or conduits installed in or through the
Demised Premises during the Demised Term pursuant to the provisions of Section
13.01, shall either be concealed behind, beneath or within partitioning,
columns, ceilings or floors, or completely furred at points immediately adjacent
to partitioning, columns or ceilings, and that when the installation of such
pipes, ducts or conduits shall be completed, such pipes, ducts or conduits shall
not materially reduce the usable area of the Demised Premises.

                                  ARTICLE 14

                                  Vault Space

     Section 14.01.  The Demised Premises do not contain any vaults, vault space
or other space outside the boundaries of the Real Property, notwithstanding
anything contained in this Lease or indicated on any sketch, blueprint or plan.
Owner makes no representation as to the location of the boundaries of the Real
Property. All vaults and vault space and all other space outside the boundaries
of the Real Property which Tenant may be permitted to use or occupy are to be
used or occupied under a revocable license, and if any such license shall be
revoked, or if the amount of such space shall be diminished or required by any
Federal, State or Municipal Authority or by any public utility company, such
revocation, diminution or requisition shall not constitute an actual or
constructive eviction, in whole or in part, or entitle Tenant to any abatement
or diminution of rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Owner. Any fee, tax or charge imposed by any
governmental authority for any such vault, vault space or other space shall be
paid by Tenant.

                                  ARTICLE 15

                           Certificate of Occupancy

     Section 15.01.  Tenant will not at any time use or occupy, or permit the
use or occupancy of, the Demised Premises in violation of any Certificate (or
Certificates) of Occupancy covering the Demised Premises. Owner

<PAGE>

                                       29

agrees that a temporary or permanent Certificate (or Certificates) of Occupancy
covering the Demised Premises will be in force on the Commencement Date
permitting the Demised Premises to be used as "offices". However, neither such
agreement, nor any other provision of this Lease, nor any act or omission of
Owner, its agents or contractors, shall be deemed to constitute a representation
or warranty that the Demised Premises, or any part thereof, may be lawfully used
or occupied for any particular purpose or in any particular manner, in
contradistinction to mere "office" use.

                                  ARTICLE 16

                                    Default

     Section 16.01.  Upon the occurrence, at any time prior to or during the
Demised Term, of any one or more of the following events (referred to as "Events
of Default"):

          (a)  if Tenant shall default in the payment when due of any
     installment of Fixed Rent or any increase in the Fixed Rent or in the
     payment when due of any additional rent and such default shall continue for
     a period of ten (10) days after notice by Owner to Tenant of such default;
     or

          (b)  if Tenant shall default in the observance or performance of any
     term, covenant or condition of this Lease on Tenant's part to be observed
     or performed (other than the covenants for the payment of Fixed Rent, any
     increase in the Fixed Rent and additional rent) and Tenant shall fail to
     remedy such default within twenty (20) days after notice by Owner to Tenant
     of such default, or if such default is of such a nature that it cannot be
     completely remedied within said period of twenty (20) days and Tenant shall
     not commence, promptly after receipt of such notice, or shall not
     thereafter diligently prosecute to completion, all steps necessary to
     remedy such default; or

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

          (d)  if, ninety (90) days after the commencement of any proceeding
     against Tenant, whether by the filing of a petition or otherwise, seeking
     any reorganization, arrangement, composition, readjustment, liquidation,
     dissolution or similar relief under the present or any future federal
     bankruptcy act or any other present or future applicable federal, state or
     other statute or law, such proceeding shall not have been dismissed, or if,
     within ninety (90) days after the appointment of any trustee, receiver or
     liquidator of Tenant, or of all or any part of Tenant's property, without
     the consent or acquiescence of Tenant, such appointment shall not have been
     vacated or otherwise discharged, or if any execution or attachment shall be
     issued against Tenant or any of Tenant's property pursuant to which the
     Demised Premises shall be taken or occupied or attempted to be taken or
     occupied; or

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

          (f)  if Tenant's interest in this Lease shall devolve upon or pass to
     any person, whether by operation of law or otherwise, except as expressly
     permitted under Article 11,

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

                                      30

     Section 16.02.  If, at any time (i) Tenant shall be comprised of two (2) or
more persons, or (ii) Tenant's obligations under this Lease shall have been
guaranteed by any person other than Tenant, or (iii) Tenant's interest in this
Lease shall have been assigned, the word "Tenant", as used in subsections (c)
and (d) of Section 16.01, shall be deemed to mean any one or more of the persons
primarily or secondarily liable for Tenant's obligations under this Lease. Any
monies received by Owner from or on behalf of Tenant during the pendency of any
proceeding of the types referred to in said subsections (c) and (d) shall be
deemed paid as compensation for the use and occupation of the Demised Premises
and the acceptance of any such compensation by Owner shall not be deemed an
acceptance of rent or a waiver on the part of Owner of any rights under Section
16.01.

                                  ARTICLE 17

                                   Remedies

     Section 17.01.  If Tenant shall default in the payment when due of any
installment of Fixed Rent or in the payment when due of any increase in the
Fixed Rent or any additional rent, and such default shall continue for a period
of ten (10) days after notice by Owner to Tenant of such default, or if this
Lease and the Demised Term shall expire and come to an end as provided in
Article 16:

          (a)  Owner and its agents and servants may immediately, or at any time
     after such default or after the date upon which this Lease and the Demised
     Term shall expire and come to an end, re-enter the Demised Premises or any
     part thereof, without notice, either by summary proceedings or by any other
     applicable action or proceeding, or by force or otherwise (without being
     liable to indictment, prosecution or damages therefor), and may repossess
     the Demised Premises and dispossess Tenant and any other persons from the
     Demised Premises and remove any and all of their property and effects from
     the Demised Premises; and

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

     Section 17.02.  Tenant hereby waives the service of any notice of intention
to re-enter or to institute legal proceedings to that end which may otherwise be
required to be given under any present or future law. Tenant, on its own behalf
and on behalf of all persons claiming through or under Tenant, including all
creditors, does further hereby waive any and all rights which Tenant and all
such persons might otherwise have under any present or future law to redeem the
Demised Premises, or to re-enter or repossess the Demised Premises, or to
restore the operation of this Lease, after (i) Tenant shall have been
dispossessed by a judgment or by warrant of any court or judge, or (ii) any re-
entry by Owner, or (iii) any expiration or termination of this Lease and the
Demised Term, whether such dispossess, re-entry, expiration or termination shall
be by operation of law or pursuant to the provisions of this Lease. The words
"re-enter", "re-entry" and "re-entered" as used in this Lease shall not be
deemed to be restricted to their technical legal meanings. In the event of a
breach or threatened breach by Tenant, or any persons claiming through or under
Tenant, of any term, covenant or condition of this Lease on Tenant's part to be
observed or performed, Owner shall have the right to enjoin such breach and the
right to invoke any other remedy allowed by law or in equity as if re-entry,
summary proceedings and other special remedies were not provided in this Lease
for such breach. The right to invoke the remedies hereinbefore set forth is
cumulative and shall not preclude Owner from invoking any other remedy allowed
by law or in equity.
<PAGE>

                                      31

                                  ARTICLE 18

                                    Damages

     Section 18.01.  If this Lease and the Demised Term shall expire and come to
an end as provided in Article 16, or by or under any summary proceeding or any
other action or proceeding, or if Owner shall re-enter the Demised Premises as
provided in Article 17, or by or under any summary proceeding or any other
action or proceeding, then, in any of said events:

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

          (b)  Tenant shall also be liable for and shall pay to Owner, as
     damages, any deficiency (referred to as "Deficiency") between the Fixed
     Rent reserved in this Lease for the period which otherwise would have
     constituted the unexpired portion of the Demised Term and the net amount,
     if any, of rents collected under any reletting effected pursuant to the
     provisions of Section 17.01 for any part of such period (first deducting
     from the rents collected under any such reletting all of Owner's expenses
     in connection with the termination of this Lease or Owner's re-entry upon
     the Demised Premises and with such reletting including, but not limited to,
     all repossession costs, brokerage commissions, legal expenses, attorney's
     fees, alteration costs and other expenses of preparing the Demised Premises
     for such reletting). Any such Deficiency shall be paid in monthly
     installments by Tenant on the days specified in this Lease for payment of
     installments of Fixed Rent. Owner shall be entitled to recover from Tenant
     each monthly Deficiency as the same shall arise, and no suit to collect the
     amount of the Deficiency for any month shall prejudice Owner's right to
     collect the Deficiency for any subsequent month by a similar proceeding.
     Solely for the purposes of this subsection (b), the term "Fixed Rent" shall
     mean the Fixed Rent in effect immediately prior to the date upon which this
     Lease and the Demised Term shall have expired and come to an end, or the
     date of re-entry upon the Demised Premises by Owner, as the case may be,
     adjusted, from time to time, to reflect any increases which would have
     been payable pursuant to any of the provisions of this Lease including, but
     not limited to, the provisions of Article 23 of this Lease if the term
     hereof had not been terminated; and

          (c)  At any time after the Demised Term shall have expired and come to
     an end or Owner shall have reentered upon the Demised Premises, as the case
     may be, whether or not Owner shall have collected any monthly Deficiencies
     as aforesaid, Owner shall be entitled to recover from Tenant, and Tenant
     shall pay to Owner, on demand, as and for liquidated and agreed final
     damages, a sum equal to the amount by which the Fixed Rent reserved in this
     Lease for the period which otherwise would have constituted the unexpired
     portion of the Demised Term exceeds the then fair and reasonable rental
     value of the Demised Premises for the same period, both discounted to
     present worth at the rate of eight (8%) per cent per annum, less the
     aggregate amount of Deficiencies theretofore collected by Owner pursuant to
     the provisions of subsection (b) of this Section for the same periods. If,
     before presentation of proof of such liquidated damages to any court,
     commission or tribunal, the Demised Premises, or any part thereof, shall
     have been relet by Owner for the period which otherwise would have
     constituted the unexpired portion of the Demised Term, or any part thereof,
     the amount of rent reserved upon such reletting shall be deemed, prima
     facie, to be the fair and reasonable rental value for the part or the whole
     of the Demised Premises so relet during the term of the reletting. Solely
     for the purposes of this subsection (c), the term "Fixed Rent" shall mean
     the Fixed Rent in effect immediately prior to the date upon which this
     Lease and the Demised Term shall have expired and come to an end, or the
     date of re-entry upon the Demised Premises by Owner, as the case may be,
     adjusted to reflect any increases in the Fixed Rent, including, but not
     limited to, any increases pursuant to the provisions of Article 23 for the
     Operating Year and Tax Year immediately preceding such event.

     Section 18.02.  If the Demised Premises, or any part thereof, shall be
relet together with other space in the Building or such reletting extends beyond
what would have been the expiration of the Demised Term, the rents collected or
reserved under any such reletting and the expenses of any such reletting shall
be equitably apportioned for the purposes of this Article 18. Tenant shall in no
event be entitled to any rents collected or payable under any reletting, whether
or not such rents shall exceed the Fixed Rent reserved in this Lease. Nothing
contained in Articles 16, 17 or this Article shall be deemed to limit or
preclude the recovery by Owner from
<PAGE>

                                      32

Tenant of the maximum amount allowed to be obtained as damages by any statute or
rule of law, or of any sums or damages to which Owner may be entitled in
addition to the damages set forth in Section 18.01.

                                  ARTICLE 19

                         Fees and Expenses, Indemnity

     Section 19.01.  If Tenant shall default in the observance or performance of
any term, covenant or condition of this Lease on Tenant's part to be observed
or performed, Owner, at any time thereafter and without notice, in case of
emergency and after the expiration of the applicable grace periods in all other
cases, may remedy such default for Tenant's account and at Tenant's expense,
without thereby waiving any other rights or remedies of Owner with respect to
such default.

     Section 19.02.  Tenant agrees to indemnify and save Owner and Owner's
agents harmless of and from all loss, cost, liability, damage and expense
including, but not limited to, reasonable counsel fees, penalties and fines,
incurred in connection with or arising from (i) any default by Tenant in the
observance or performance of any of the terms, covenants or conditions of this
Lease on Tenant's part to be observed or performed, or (ii) the breach or
failure of any representation or warranty made by Tenant in this Lease or (iii)
the use or occupancy or manner of use or occupancy of the Demised Premises by
Tenant or any person claiming through or under Tenant, or (iv) any acts,
omissions or negligence of Tenant or any such person, or the contractors,
agents, servants, employees, visitors or licensees of Tenant or any such person,
in or about the Demised Premises or the Building either prior to, during, or
after the expiration of, the Demised Term, including, but not limited to, any
acts, omissions or negligence in the making or performing of any Alterations.
Tenant further agrees to indemnify and save harmless Owner, Owner's agents, and
the lessor or lessors under all ground or underlying leases, of and from all
loss, cost, liability, damage and expense, including, but not limited to,
reasonable counsel fees, incurred in connection with or arising from any claims
by any persons by reason of injury to persons or damage to property occasioned
by any use, occupancy, act, omission or negligence referred to in the preceding
sentence. If any action or proceeding shall be brought against Owner or Owner's
agents or the lessor or lessors under any ground or underlying lease, based
upon any such claim and if Tenant, upon notice from Owner, shall cause such
action or proceeding to be defended at Tenant's expense by counsel acting for
Tenant's insurance carriers in connection with such defense or by other counsel
reasonably satisfactory to Owner, without any disclaimer of liability by Tenant
or such insurance carriers in connection with such claim, Tenant shall not be
required to indemnify Owner, Owner's agents, or any such lessor for counsel
fees in connection with such action or proceeding. Tenant shall maintain
comprehensive public liability insurance against any claims by reason of
personal injury, death and property damage occurring in or about the Demised
Premises covering, without limitation, the operation of any private air
conditioning equipment and any private elevators escalators or conveyors in or
serving the Demised Premises or any part thereof, whether installed by
Owner, Tenant or others, and shall furnish to Owner duplicate original policies
of such insurance at least ten (10) days prior to the Commencement Date and at
least ten (10) days prior to the expiration of the term of any such policy
previously furnished by Tenant, in which policies Owner, its agents and any
lessor under any ground or underlying lease shall be named as parties insured,
which policies shall be issued by companies, and shall be in form and amounts,
reasonably satisfactory to Owner.

     Section 19.03. Tenant shall pay to Owner, within five (5) days next
following rendition by Owner to Tenant of bills or statements therefor: (i) sums
equal to all expenditures made and monetary obligations incurred by Owner
including, but not limited to, expenditures made and obligations incurred for
reasonable counsel fees, in connection with the remedying by Owner, for Tenant's
account pursuant to the provisions of Section 19.01, of any default of Tenant,
and (ii) sums equal to all losses, costs, liabilities, damages and expenses
referred to in Section 19.02, and (iii) sums equal to all expenditures made and
monetary obligations incurred by Owner including, but not limited to,
expenditures made and obligations incurred for reasonable counsel fees, in
collecting or attempting to collect the Fixed Rent, any additional rent or any
other sum of money accruing under this Lease or in enforcing or attempting to
enforce any rights of Owner under this Lease or pursuant to law, whether by the
institution and prosecution of summary proceedings or otherwise; and (iv) all
other sums of money (other than Fixed Rent) accruing from Tenant to Owner under
the provisions of this Lease. Any sum of money (other than Fixed Rent) accruing
from Tenant to Owner pursuant to any provision of this Lease including, but not
limited to, the provisions of Schedule A, whether prior to or after the
Commencement Date, may, at
<PAGE>

                                      33

Owner's option, be deemed additional rent, and Owner shall have the same
remedies for Tenant's failure to pay any item of additional rent when due as for
Tenant's failure to pay any installment of Fixed Rent when due. Tenant's
obligations under this Article shall survive the expiration or sooner
termination of the Demised Term.

     Section 19.04. If Tenant shall fail to make payment of any installment of
Fixed Rent, or any increase in the Fixed Rent, or any additional rent within ten
(10) days after the date when such payment is due, Tenant shall pay to Owner, in
addition to such installment of Fixed Rent or such increase in the Fixed Rent or
such additional rent, as the case may be, as a late charge and as additional
rent, a sum equal to two (2%) percent per annum above the then current prime
rate charged by Citibank (N.A.) or its successor of the amount unpaid computed
from the date such payment was due to and including the date of payment.

     Section 19.05. Supplementing the provisions of Section 5.02 if (i) Owner
shall default in its obligation to make repairs solely in the Demised Premises,
in accordance with the provisions of said Section 5.02, and (ii) Tenant shall
notify Owner of the existence of such default, and (iii) Owner shall (x) fail to
start to cure such default within thirty (30) days (or promptly in the event of
an emergency) after said notice or shall fail thereafter to prosecute to
completion with reasonable diligence the work necessary to cure such default, or
(y) fail to notify Tenant within thirty (30) days after said notice that Owner
is unable to start to cure such default because of inability to obtain
materials, or strikes or other labor disputes, fire or other casualty (or
reasonable delays in adjustment of insurance), accidents, orders or regulations
of any Federal, State, County or Municipal authority, or by any other cause
beyond Owner's reasonable control, whether or not such cause shall be similar in
nature to those hereinbefore enumerated, then, but only in all such events and
subject to the provisions set forth in the following provisions of this Section,
Tenant may take action to cure such default. In the event Tenant takes any such
action in accordance with the foregoing provisions of this Section to cure such
default, any reasonable expenditures made by Tenant to cure such default shall
be repaid by Owner to Tenant within twenty (20) days after demand provided,
however, that Owner's failure to make such repayment shall not constitute an
actual or constructive eviction, in whole or in part, or entitle Tenant to any
abatement or diminution of rent, or any set-off or deduction whatsoever against
the rent and Tenant's sole remedy in such circumstances shall be to bring action
against Owner for the amount claimed due. If Owner shall fail to make any such
repayment when due, Owner shall pay to Tenant in addition to the amount of such
repayment, as a late charge, a sum equal to two (2%) percent per annum above the
then current prime rate charged by Citibank (N.A.) or its successor of the
amount unpaid computed from the date such repayment was due to and including the
date of payment. Owner, at Owner's election, may make such repayment in the form
of a rent credit against the next accruing monthly installment of Fixed Rent.

     Section 19.06. Owner agrees to indemnify and save Tenant harmless of and
from all loss, cost, liability, damage and expense including, but not limited
to, reasonable counsel fees, penalties and fines incurred in connection with or
arising from (i) any default by Owner in the performance or observance of any of
the terms, covenants or conditions of this Lease on Owner's part to be observed
or performed or (ii) any act, omissions or negligence of Owner or its employees,
agents, contractors or servants in or about the Demised Premises or the Building
either prior to, during, or after, the expiration of the Demised Term including,
but not limited to any acts, omissions or negligence in making any alterations,
repairs or maintenance of the Building or the Demised Premises which are Owner's
obligation under this Lease. Owner further agrees to indemnify and save harmless
Tenant of and from all loss, cost, liability, damage, and expense, including,
but not limited to, reasonable counsel fees incurred in connection with or
arising from any claims by any persons or damage to property occasioned by any
act, omission or negligence referred to in the preceding sentence. If any action
or proceeding shall be brought against Tenant based upon any such claim and if
Owner, upon notice from Tenant, shall cause such action or proceeding to be
defended at Owner's expense by counsel acting for Owner's insurance carriers in
connection with such defense or by other counsel reasonably satisfactory to
Tenant, without any disclaimer of liability by Owner in connection with such
claim, Owner shall not be required to indemnify Tenant or Tenant's agents for
counsel fees in connection with such action or proceeding.

     Section 19.07. Owner shall pay to Tenant, within five (5) days next
following rendition by Tenant to Owner of statements therefor (in reasonable
detail), or shall credit Tenant, at Owner's election, against the next accruing
monthly installments of Fixed Rent, sums equal to all loss, costs, liabilities,
damages and expenses referred to in Section 19.06.  If there are not enough
installments of Fixed Rent remaining in the Demised Term for any such credit to
be fully applied or if the Demised Term shall have expired at the time Tenant
renders any such
<PAGE>

                                      34

statement. Owners shall pay to Tenant, within five (5) days next following
rendition of any such statement, either the portion of such credit which could
not be applied to the remaining instalments of Fixed Rent or the total amount of
such credit if such statement be rendered after the expiration of the Demised
Term, as the case may be. If Owner shall fail to make any such payment when due,
Owner shall pay to Tenant in addition to the amount of such payment, as a late
charge, a sum equal to two (2%) percent per annum above the then current prime
rate charged by Citibank (N.A.) or its successor of the amount unpaid computed
from the date such payment was due to and including the date of payment. Owner's
obligations under this Article shall survive the expiration or sooner
termination of the Demised Term.

                                  ARTICLE 20

                               Entire Agreement

     Section 20.01. This Lease contains the entire agreement between the parties
and all prior negotiations and agreements are merged in this Lease. Neither
Owner nor Owner's agents have made any representations or warranties with
respect to the Demised Premises, the Building, the Real Property or this Lease
except as expressly set forth in this Lease and no rights, easements or licenses
are or shall be acquired by Tenant by implication or otherwise unless expressly
set forth in this Lease. This Lease may not be changed, modified or discharged,
in whole or in part, orally and no executory agreement shall be effective to
change, modify or discharge, in whole or in part, this Lease or any obligations
under this Lease, unless such agreement is set forth in a written instrument
executed by the party against whom enforcement of the change, modification or
discharge is sought. All references in this Lease to the consent or approval of
Owner shall be deemed to mean the written consent of Owner, or the written
approval of Owner, as the case may be, and no consent or approval of Owner shall
be effective for any purpose unless such consent or approval is set forth in a
written instrument executed by Owner.

                                  ARTICLE 21

                                  End of Term

     Section 21.01. On the date upon which the Demised Term shall expire and
come to an end, whether pursuant to any of the provisions of this Lease or by
operation of law, and whether on or prior to the Expiration Date. Tenant, at
Tenant's sole cost and expense, (i) shall quit and surrender the Demised
Premises to Owner, broom clean and in good order and condition, ordinary wear
and damage or destruction by fire, and other casualty and repairs for which
Tenant is not liable under the provisions of this Lease excepted, and (ii) shall
remove all of Tenant's Personal Property and all other property and effects of
Tenant and all persons claiming through or under Tenant required to be removed
from the Demised Premises and the Building, and (iii) shall repair all damage to
the Demised Premises occasioned by such removal. Owner shall have the right to
retain any property and effects which shall remain in the Demised Premises after
the expiration or sooner termination of the Demised Term, and any net proceeds
from the sale thereof, without waiving Owner's rights with respect to any
default by Tenant under the foregoing provisions of this Section. Tenant
expressly waives, for itself and for any person claiming through or under
Tenant, any rights which Tenant or any such person may have under the provisions
of Section 2201 of the New York Civil Practice Law and Rules and of any
successor law of like import then in force, in connection with any holdover
summary proceedings which Owner may institute to enforce the foregoing
provisions of this Article. If said date upon which the Demised Term shall
expire and come to an end shall fall on a Sunday or holiday, then Tenant's
obligations under the first sentence of this Section shall be performed on or
prior to the Saturday or business day immediately preceding such Sunday or
holiday. Tenant's obligations under this Section shall survive the expiration or
sooner termination of the Demised Term.

                                  ARTICLE 22

                                Quiet Enjoyment

     Section 22.01. Owner covenants and agrees with Tenant that upon Tenant
paying the Fixed Rent and additional rent reserved in this Lease and observing
and performing all of the terms, covenants and conditions of
<PAGE>

                                      35

this Lease on Tenant's part to be observed and performed, Tenant may peaceably
and quietly enjoy the Demised Premises during the Demised Term, subject,
however, to the terms, covenants and conditions of this Lease including, but not
limited to, the provisions of Section 42.01, and subject to the ground and
underlying leases and the mortgages referred to in Article 7.

                                  ARTICLE 23

                          Tax and Operating Payments

     Section 23.01. In the determination of any increase in the Fixed Rent under
the provisions of this Article, Owner and Tenant agree as follows:

     A. The term "Tax Year" shall mean each fiscal year commencing July 1st and
ending on the following June 30th which shall include any part of the Demised
Term.

     B. The term "Operating Year" shall mean each calendar year which shall
include any part of the Demised Term.

     C. The term "Taxes" shall be deemed to include all real estate taxes and
assessments, special or otherwise, upon or with respect to the Real Property
imposed by the City or County of New York or any other taxing authority. If, due
to any change in the method of taxation, any franchise, income, profit, sales,
rental, use and occupancy or other tax shall be substituted for or levied
against Owner or any owner or lessee of the Building or the Real Property, in
lieu of any real estate taxes or assessments upon or with respect to the Real
Property, such tax shall be included in the term "Taxes" for the purposes of
this Article.

     D. Owner has applied for a certificate of eligibility from the Department
of Finance of the City of New York determining that Owner is eligible to apply
for a deferral of tax payments for the Real Property pursuant to the provisions
of Chapter 56-A of the Administrative Code of the City of New York and the
regulations promulgated pursuant to such Chapter and Owner represents to Tenant
that Owner is so eligible. Any such tax deferral for the Real Property is
referred to as "Tax Deferral" and the period of such Tax Deferral is referred to
as the "Tax Deferral Period". Owner agrees that Tenant shall not be required to
(a) pay Taxes or charges which become due because of the willful neglect or
fraud by Owner in connection with the program under which Owner shall receive
the Tax Deferral or (b) otherwise relieve or indemnify Owner from any personal
liability arising under Section 1319 of the Administrative Code of the City of
New York, except where imposition of such Taxes, charges or liability is
occasioned by actions of Tenant in violation of this Lease. Tenant agrees to
report to Owner, as often as is necessary under such regulations, the number of
workers engaged in employment in the Demised Premises, the nature of each
worker's employment and the residency of each worker and to provide access to
the Demised Premises by employees and agents of the Department of Finance of the
City of New York at all reasonable times at the request of Owner. Tenant
represents to the Owner that, within the seven (7) years immediately preceding
the date of this Lease, Tenant has not been adjudged by a court of competent
jurisdiction to have been guilty of (x) an act, with respect to a building,
which is made a crime under the provisions of Article 150 of the Penal Law of
the State of New York or any similar law of another state, or (y) any act made a
crime or violation by the provisions of Section 235 of the Real Property Law of
the State of New York, nor is any charge for a violation of such laws presently
pending against Tenant. Tenant further agrees to cooperate with Owner in
compliance with such Chapter and regulations to aid Owner in obtaining and
maintaining the Tax Deferral. Owner agrees to attempt to obtain and maintain the
Tax Deferral for the Tax Deferral Period and agrees that in the event Owner
shall be unable to obtain or maintain the Tax Deferral during such Period that
the term "Taxes" set forth in subsection C of this Section 23.01 shall
nonetheless be deemed adjusted as if Owner had obtained and maintained the Tax
Deferral during such Period.

     E. The term "Tenant's Proportionate Share" shall mean forty-four and 19/100
(44.19%) percent.

     F. The term "Owner's Tax Statement" shall mean a statement containing a
computation of any increase in the Fixed Rent pursuant to the provisions of
Section 23.02, together with a copy of the applicable tax bills.

     G. The term "Owner's Operating Expense Statement" shall mean a statement
containing a computation of any increase in the Fixed Rent pursuant to the
provisions of Section 23.04.
<PAGE>

                                      36

     H.   The term "Operating Expenses" shall mean the aggregate cost and
expense incurred by Owner in the operation, maintenance, management and security
of the Real Property and any plazas, sidewalks and curbs adjacent thereto
including, without limitation, the cost and expense of the following: salaries,
wages, medical, surgical and general welfare and other so-called "fringe"
benefits (including group insurance and retirement benefits) for employees of
Owner or any contractor of Owner engaged in the cleaning, operation, maintenance
or management of the Real Property or engaged for security purposes and/or for
receiving or transmitting deliveries to and from the Building,and payroll taxes
and workmen's compensation insurance premiums relating thereto, gas, steam
(without giving effect to any repayment by the public utility supplying such
steam to Owner on account of a prepayment made by Owner to such public utility
for bringing steam service to the Real Property), water, sewer rental,
electricity, utility taxes, rubbish removal, fire, casualty, liability, rent and
other insurance carried by Owner, repairs, repainting of common areas,
replacement, maintenance of grounds, Building supplies, uniforms and cleaning
thereof, snow removal, window cleaning, service contracts with independent
contractors for any of the foregoing (including, but not limited to, elevator,
air conditioning and fire alarm and communication equipment maintenance),
management fees (whether or not paid to any person, firm or corporation having
an interest in or under common ownership with Owner or any of the persons, firms
or corporations comprising Owner), legal fees and disbursements and other
expenses, including, without limitation, legal fees and expenses incurred in
connection with any application or proceeding brought for reduction of the
actual and/or transitional assessed valuations of the Real Property or any part
thereof, and legal fees for summary proceedings to dispossess tenants and the
enforcement of leases, auditing fees, and all other costs and expenses incurred
in connection with the operation, maintenance, management and security of the
Real Property, and any plazas, sidewalks and curbs adjacent thereto, but
excluding, nevertheless, the cost and expense of the following: (i) leasing
commissions; (ii) management fees in excess of generally prevailing rates in the
Borough of Manhattan for buildings of like class and character; (iii)
executives' salaries above the grade of building manager and superintendent;
(iv) capital improvements and replacements which under generally accepted
accounting principles and practice would be classified as capital expenditures,
except the cost and expense of any improvement, alteration, replacement or
installation made or performed after completion of the construction of the
Building which is either (a) required by law (unless such expenditure was
required to be made in order for Owner to reasonably obtain a Certificate of
Occupancy for the Demised Premises or the Building or (b) designed, in Owner's
reasonable judgment, to result in savings or reductions in Operating Expenses or
(c) designed, in Owner's reasonable judgment, to benefit the tenants of the
Building (such improvements, alterations, replacements and installations are
referred to as "Included Improvements"); the cost and expense of Included
Improvements shall be included in Operating Expenses for any Operating Year to
the extent of (x) the annual amortization or depreciation of the cost and
expense to Owner of such Included Improvements, as amortized on a straight line
basis over ten (10) years, plus (y) an annual charge for interest upon the
unamortized or undepreciated portions of such cost and epense at the average
prime rate during the Operating Year in question; (v) any other item which under
generally accepted accounting principles and practice would not be regarded as
an operating, maintenance or management expense; (vi) any item for which Owner
is compensated through proceeds of insurance and, if Owner does not carry fire
and extended coverage insurance for the Building, any item for which Owner would
be compensated under fire and extended coverage policies generally carried by
owners of like buildings; (vii) any cost to Owner for services rendered to a
tenant by Owner above and beyond those services generally rendered by Owner to
tenants in the Building without specific compensation therefor, (viii) franchise
or income taxes of Owner, (ix) costs incurred in connection with the transfer or
disposition of Owner's interest in the Building; (x) any cost representing an
amount paid to (a) any entity which controls, is controlled by, or is under
common control with, Owner or (b) any person related by blood or marriage to any
shareholder or partner of Owner, which is in excess of the amount which would be
paid in the absence of such control or relationship; (xi) depreciation of the
Building and equipment located therein (other than Included Improvements); (xii)
all costs incurred in connection with the initial construction of the Building
including the removal of any violations therefrom and the cost of repairing any
defects in (a) the initial construction thereof or, (b) Owner's Initial
Construction, of which Owner has been given notice within one (1) year after the
Commencement Date; (xiii) costs incurred to comply with legal requirements in
effect at the time of completion of the Building if such compliance was required
in order for Owner to initially obtain a Certificate of Occupancy for the
Building; (xiv) the cost of increasing the size of the initial Building; (xv)
legal and auditing fees, other than legal and auditing fees hereinabove
enumerated in the definition of "Operating Expenses", incurred in Connection
with the operation, maintenance and management of the building; (xvi) the cost
of any electric current furnished to any tenant space in the Building; (xvii)
any cost
<PAGE>

                                      37

incurred by Owner to the extent Owner is entitled to specific reimbursement
therefor by any tenant or other occupant of the Building; (xviii) advertising
and promotion expenses; (xix) ground rent and any rent, additional rent or other
charge under any ground lease including, but not limited to, the Ground and
Development Rights Lease; (xx) all costs of constructing any space in the
Building for occupancy by a tenant; (xxi) Taxes; (xxii) debt service and other
costs of financing or refinancing; (xxiii) costs incurred in performing work on
the adjacent Broadway Theater; and (xxiv) if Tenant exercises its option set
forth in Section 29.04.A to arrange for the cleaning of the Demised Premises at
its own cost and expense, the costs attributable to cleaning (other than window
cleaning) any rentable areas of the Bui1ding.

     I.   The term "Monthly Escalation Installment" shall mean a sum equal to
one-twelfth (1/12) of the increase in the Fixed Rent payable pursuant to the
provisions of subsection 23.04 A for the Operating Year with respect to which
Owner has most recently rendered an Owner's Operating Expense Statement,
appropriately adjusted to reflect (i) in the event such Operating Year is a
partial calendar year, the increase in the Fixed Rent which would have been
payable for such Operating Year if it had been a full calendar year, and (ii)
the amount by which current Operating Expenses as reasonably estimated by Owner
exceed Operating Expenses as reflected in such Owner's Operating Expense
Statement; and (iii) any net credit balance to which Tenant may be entitled
pursuant to the provisions of subsection 23.05 C.

     J.   The term "Monthly Escalation Installment Notice" shall mean a notice
given by Owner to Tenant which sets forth the current Monthly Escalation
Installment; such Notice may be contained in a regular monthly rent bill, in an
Owner's Operating Expense Statement, or otherwise, and may be given from time
to time, but not more than monthly, at Owner's election.

     Section 23.02. A. The Fixed Rent for each Tax Year shall be increased by a
sum equal to Tenant's Proportionate Share of Taxes for such Tax Year.

     B.   Unless the Commencement Date shall occur on a July 1st, any increase
in the Fixed Rent pursuant to the provisions of subsection A of this Section
23.02 (or the Tax Year in which the Commencement Date shall occur shall be
apportioned in that percentage which the number of days in the period from the
Commencement Date to June 30th of such Tax Year, both inclusive, shall bear to
the total number of days in such Tax Year. Unless the Demised Term shall expire
on a June 30th, any increase in the Fixed Rent pursuant to the provisions of
said subsection A for the Tax Year in which the date of the expiration of the
Demised Term shall occur shall be apportioned in that percentage which the
number of days in the period from July 1st of such Tax Year to such date of
expiration, both inclusive, shall bear to the total number of days in such Tax
Year.

     Section 23.03. A. Owner shall render to Tenant, either in accordance with
the provisions of Article 27 or by personal delivery at the Demised Premises,
Attn. Chief Financial Officer, an Owner's Tax Statement or Statements with
respect to each Tax Year, either prior to or during such Tax Year. Owner's
failure to render an Owner's Tax Statement with respect to any Tax Year shall
not prejudice Owner's right to render an Owner's Tax Statement with respect to
any subsequent Tax Year nor shall it deprive Tenant of any credit to which it
otherwise might be entitled to for any Tax Year pursuant to the provisions of
subsection C of this Section 23.03. Tenant acknowledges that under present law,
Taxes are payable by Owner (i) with respect to a fiscal year commencing July 1st
and ending on the following June 30th, and (ii) in two (2) installments, in
advance, the first of which is payable on July 1st, and the second and final
payment of which is payable on the following January 1st. Within ten (10) days
next following rendition of the first Owner's Tax Statement which shows an
increase in the Fixed Rent for any Tax Year, Tenant shall pay to Owner one-half
of the amount of the increase shown upon such Owner's Tax Statement for such Tax
Year (including any apportionment pursuant to the provisions of Subsection B of
Section 23.02); and, subsequently, provided Owner shall have rendered to Tenant
an Owner's Tax Statement. Tenant shall pay to Owner not later than thirty (30)
days prior to the date on which the installment of Taxes is required to be paid
by Owner a sum equal to one half (1/2) of Tenant's Proportionate Share of Taxes
payable with respect to such Tax Year as shown on such Owner's Tax Statement.
Tenant further acknowledges that is the purpose and intent of this Section 23.03
to provide Owner with Tenant's Proportionate Share of the increases in the Fixed
Rent pursuant to the provisions of this subsection A thirty (30) days prior to
the time such installment of Taxes is required to be paid by Owner without
penalty or interest. Accordingly, Tenant agrees if the number of such
installments and or the date of payment thereof and/or the fiscal year used for
the purpose of Taxes shall change then (a) at the time that any such revised
installment is payable by Owner, Tenant shall pay to
<PAGE>

                                      38

Owner the amount which shall provide Owner with Tenant's Proportionate Share of
the increases in the Fixed Rent pursuant to the provisions of Section 23.02.A.
applicable to the revised installment of Taxes then required to be paid by
Owner, and (b) this Article shall be appropriately adjusted to reflect such
change and the time for payment to Owner of Tenant's Proportionate Share of any
increase in Taxes as provided in this Article shall be appropriately revised so
that Owner shall always be provided with Tenant's Proportionate Share of the
increase in the Fixed Rent thirty (30) days prior to the installment of Taxes
required to be paid by Owner. Notwithstanding the foregoing provisions of this
subsection A to the contrary, in the event the holder of any mortgage affecting
any ground or underlying lease, including, but not limited to the Ground and
Development Rights Lease, shall require Owner to make monthly deposits on
account of real estate taxes, then this Article shall be appropriately adjusted
to reflect the requirement that Owner make monthly deposits on account of real
estate taxes to that Owner shall always be provided with one-twelfth (1/12th) of
Tenant's Proportionate Share of such increase in the Fixed Rent with respect to
any Tax Year thirty (30) days prior to the payment by Owner of such monthly
deposits on account of real estate taxes.

     B.   Tenant acknowledges that its obligations under the provisions of
subsection 23.02.A. will be greater if Owner fails to obtain a Tax Deferral and
agrees that, subject to the provisions of the last sentence of subsection D of
Section 23.01. Owner shall have no liability to Tenant nor shall Tenant be
entitled to any abatement or diminution of rent if Owner fails to obtain a Tax
Deferral. Tenant further acknowledges that its obligations under the provisions
of subsection 23.02.A. shall increase during and at the expiration of the Tax
Deferral Period as the law and regulations pursuant to which Owner may obtain a
Tax Deferral provides for limited deferrals of tax payments for the first (1st)
seven tax years following the issuance of a certificate of eligibility (100% for
the first three years, 80% for the fourth year, 60% for the fifth year, 40% for
the sixth year and 20% for the seventh year) and the payment by Owner of the
total amount of tax payments deferred commencing in the eleventh tax year
following the issuance of a certificate of eligibility, through and including
the twentieth tax year following such issuance, by adding an amount equal to 10%
of the total amount of tax payments deferred to the amount of tax otherwise
assessed and payable in each such tax year.

     C.   If, as a result of any application or proceeding brought by or on
behalf of Owner for reduction of the assessed valuation of the Real Property
there shall be a decrease in Taxes for any Tax Year with respect to which Owner
shall have previously rendered an Owner's Tax Statement, the next monthly
instalment or instalments of Fixed Rent following such decrease shall include an
adjustment of the Fixed Rent for such Tax Year reflecting a credit to Tenant
equal to the amount by which (i) the Fixed Rent actually paid by Tenant with
respect to such Tax Year (as increased pursuant to the operation of the
provisions of subsection A of Section 23.02), shall exceed (ii) the Fixed Rent
payable with respect to such Tax Year (as increased pursuant to the operation of
the provisions of subsection A of Section 23.02) based upon such reduction of
the assessed valuation.

     Section 23.04. A. The Fixed Rent for each Operating Year shall be increased
by a sum equal to Tenant's Proportionate Share of Operating Expenses for such
Operating Year.

     B.   Unless the Commencement Date shall occur on a January 1st, any
increase in the Fixed Rent pursuant to the provisions of subsection A of this
Section 23.04 for the Operating Year in which the Commencement Date shall occur
shall be apportioned in that percentage which the number of days in the period
from the Commencement Date to December 31st of such Operating Year, both
inclusive, shall bear to the total number of days in such Operating Year. Unless
the Demised Term shall expire on a December 31st, any increase in the Fixed Rent
pursuant to the provisions of subsection A of this Section 23.04 for the
Operating Year in which the date of the expiration of the Demised Term shall
occur shall be apportioned in that percentage which the number of days in the
period from January 1st of such Operating Year to such date of expiration, both
inclusive, shall bear to the total number of days in such Operating Year.

     C.   In the determination of any increase in the Fixed Rent pursuant to the
foregoing provisions of this Section 23.04, if the Building shall not have been
fully occupied during any Operation Year, Operating Expenses for such Operating
Year shall be equitably adjusted (by including such additional expenses as Owner
would have incurred) to the extent, if any, required to reflect full occupancy.

     Section 23.05. A. Owner shall render to Tenant, either in accordance with
the provisions of Article 27 or by personal delivery at the Demised Premises,
Attn. Chief Financial Officer, an Owner's Operating Expense Statement with
respect to each Operating Year on or before the next succeeding October 1st.
Owner's failure to
<PAGE>

                                      39

render an Owner's Operating Expense Statement with respect to any Operating Year
shall not prejudice Owner's right to render an Owner's Operating Expense
Statement with respect to any subsequent Operating Year.

     B.   Within fifteen (15) days next following rendition of the first Owner's
Operating Expense Statement which shows an increase in the Fixed Rent for any
Operating Year. Tenant shall pay to Owner the entire amount of such increase. In
order to provide for current payments on account of future increases in the
Fixed Rent payable by Tenant pursuant to the provisions of subsection 23.04 A,
Tenant shall also pay to Owner at such time, provided Owner has given to Tenant
a Monthly Escalation Installment Notice, a sum equal to the product of (i) the
Monthly Escalation Installment set forth in such notice multiplied by (ii) the
number of months or partial months which shall have elapsed between January 1st
of the Operating Year in which such payment is made and the date of such payment
less any amounts theretofore paid by Tenant to Owner on account of increases in
the Fixed Rent for such Operating Year pursuant to the provisions of the
penultimate sentence of this Section 23.05B; thereafter Tenant shall make
payment of a Monthly Escalation Installment throughout each month of the Demised
Term. Monthly Escalation Installments shall be added to and payable as part of
each monthly installment of Fixed Rent. Notwithstanding anything to the contrary
contained in the foregoing provisions of this Article, prior to the rendition of
the first Owner's Operating Expense Statement which shows an increase in the
Fixed Rent for any Operating Year, Owner may render to Tenant a pro-forma
Owner's Operating Expense Statement containing a bona fide estimate of the
increase in the Fixed Rent for the Operating Year in which the Commencement Date
shall occur. Following the rendition of such pro-forma Owner's Operating Expense
Statement, Tenant shall pay to Owner a sum equal to one twelfth (1/12) of the
estimated increase in the Fixed Rent shown thereon for such Operating Year
multiplied by the number of months which may have elapsed between the
Commencement Date and the month in which such payment is made and thereafter pay
to Owner, on the first day of each month of the Demised Term (until the
rendition by Owner of the first Owner's Operating Expense Statement) a sum equal
to one-twelfth (1/12) of the increase in the Fixed Rent shown on such pro-forma
Owner's Operating Expense Statement. Any sums paid pursuant to the provisions of
the immediately preceding sentence shall be credited against the sums required
to be paid by Tenant to Owner pursuant to the Owner's Operating Expense
Statement for the first Operating Year for which there is an increase in the
Fixed Rent pursuant to the provisions of subsection A.

     C.   Following rendition of the first Owner's Operating Expense Statement
and each subsequent Owner's Operating Expense Statement a reconciliation shall
be made as follows: Tenant shall be debited with any increase in the Fixed Rent
shown on such Owner's Operating Expense Statement and credited with the
aggregate amount, if any, paid by Tenant in accordance with the provisions of
subsection B of this Section on account of future increases in the Fixed Rent
pursuant to subsection 23.04 A which has not previously been credited against
increased in the Fixed Rent shown on Owner Operating Expense Statements. Tenant
shall pay any net debit balance to Owner within fifteen (15) days next following
rendition by Owner, either in accordance with the provisions of Article 27 or by
personal delivery at the Demised Premises of an invoice for such net debit
balance, Attn. Chief Financial Officer; any net credit balance shall be applied
as an adjustment against the next accruing Monthly Escalation Installment as
provided in subsection I of Section 23.01 (unless there is no such Monthly
Escalation Installment remaining, in which event any net credit balance shall be
payable by Owner to Tenant within fifteen (15) days next following the rendition
of said Owner's Operating Expense Statement.) In the event Tenant shall be
required to pay any net debit balance to Owner, as aforesaid, or Owner shall be
required to apply any net credit balance as aforesaid, the party required to pay
such net debit balance or make such application, as the case may be, shall also
pay interest on such amount at the rate equal to two (2%) percent per annum
above the then current prime rate charged to Citibank (N.A.), or its successor,
computed from the date of each Monthly Escalation Installment Notice (with
respect to any net debit balance) or each Monthly Escalation Installment Payment
(with respect to any net credit balance), as the case may be, to and including
the date of the payment of such net credit balance or the application of such
net credit balance, as the case may be.

     Section 23.06. A. In the event of any dispute between Owner and Tenant
arising out of the application of the Operating Expenses provisions of this
Article, including, but not limited to, any increases in the Fixed Rent set
forth in any Owner's Operating Expense Statement, such dispute shall be
determined by arbitration in accordance with the provisions of Article 36. Owner
and Tenant acknowledge that with respect to the payment of Taxes and Operating
Expenses, this Lease shall be deemed a "Net Lease" and, accordingly, it is the
intention of this Article that Tenant shall pay to Owner, throughout the Demised
Term, Tenant's Proportionate Share of one-
<PAGE>

                                      40

hundred (100%) percent of Taxes and Operating Expenses payable by Owner.
Notwithstanding any dispute and submission to arbitration, and to legal
proceedings in accordance with the provisions of Article 36, any increase in the
Fixed Rent shown upon any Owner's Tax Statement. Owner's Operating Expense
Statement or any Monthly Escalation Installment Notice shall be payable by
Tenant within the time limitation set forth in this Article. If the
determination in such arbitration or legal proceedings hsal be adverse to Owner,
any amount paid by Tenant to Owner in excess of the amount determined to be
properly payable shall be credited against the next accruing installments of
Fixed Rent due under this Lease. However, if there are no such installments,
such amount shall be paid by Owner to Tenant within ten (10) days following such
determination.

     B. In the event Tenant disagrees with any computation or other matter
contained in any Owner's Tax Statement or any Owner's Operating Expense
Statement or any Monthly Escalation Installment Notice, Tenant shall have the
right to give notice to Owner within ninety (90) days next following rendition
of such Statement or Notice setting forth the particulars of such disagreement.
If the matter is not resolved within sixty (60) days next following the giving
of such Notice by Tenant, it shall be deemed a dispute which either party may
submit to arbitration pursuant to the provisions of subsection A of this
Section. If (i) Tenant does not give a timely notice to Owner in accordance with
the foregoing provisions of this subsection disagreeing with any computation or
other matter contained in any Owner's Tax Statement or any Owner's Operating
Expense Statement or any Monthly Escalation Installment Notice and setting forth
the particulars of such disagreement, or (ii) if any such timely Notice shall
have been given by Tenant, the matter shall not have been resolved and neither
party shall have submitted the dispute to arbitration within sixty (60) days
next following the giving of such Notice by Tenant, Tenant shall be deemed
conclusively to have accepted such Owner's Tax Statement or such Owner's
Operating Expense Statement or Monthly Escalation Installment Notice, as the
case may be, and shall have no further right to dispute the same.

     C. Tenant or Tenant's accountants shall have the right to examine those
portions of Owner's records which pertain to Operating Expenses and which are
required to verify the accuracy of any amounts shown on any Owner's Operating
Expense Statement, provided Tenant shall notify Owner of its desire to so
examine such records within sixty (60) days next following the rendition of such
Owner's Operating Expense Statement. Owner shall make such records available
promptly in its offices in New York City. If Tenant shall fail to (a) so notify
Owner of its desire to so examine such records within said sixty (60) day period
next following rendition of such Owner's Operating Expense Statement or (b) so
examine such records within ninety (90) days next following rendition of such
Owner's Operating Expense Statement then Tenant shall have no further right to
examine such records with respect to such Statement.

     Section 23.07. A. Owner, upon timely request of tenants in the Building
occupying at least 500,000 rentable square feet, will make appropriate protest
of any proposed real estate tax assessment for any fiscal tax year subsequent to
the fiscal tax year during which the Commencement Date shall occur or will
institute proceedings seeking to reduce any such assessment and use reasonable
efforts to effect a reduction of such proposed assessment, provided, however,
that (i) as a condition of Owner's obligation to make such protest or institute
such proceedings. Tenant shall agree, in writing, to assume the entire cost of
such protest or proceedings, including reasonable counsel fees (to the extent
that such cost is not recoverable by Owner from other tenants in the Building
pursuant to the provisions of the respective leases of such tenants, in the
event of any question as to whether any such cost is so recoverable from other
tenants in the Building, the certification of the Certified Public Accountant
employed by Owner shall be deemed conclusive with respect to such question) and
to pay such cost to Owner, upon demand, as additional rent, and (ii) the method
and manner of conducting such protest or proceeding, including the selection of
counsel, shall be solely within the judgment of Owner, and (iii) Owner may
cancel, discontinue or settle such protest or proceedings, if, in Owner's
reasonable judgment, such cancellation, discontinuance or settlement is deemed
advisable.

     B. Owner agrees that if Owner shall in any other lease in the Building
afford to a tenant thereunder greater rights than are provided in subsection A
of this Section, then such subsection A shall be deemed modified to include such
greater rights, and upon request of Tenant. Owner and Tenant shall enter into an
agreement, in form reasonably satisfactory to Owner, modifying such subsection A
of this Section to incorporate such greater rights. Owner will notify Tenant if
Owner enters in any such lease with greater rights.
<PAGE>

                                      41

     C. If any other leases in the Building contain provisions similar to those
contained in subsection A of this Section obligating the tenants thereunder to
assume the costs of any such protests or proceedings referred to therein, then
any such costs shall be equitably apportioned among Tenant and any such other
tenants making a similar request on the basis of the square footage then leased
to Tenant and such other tenants.

     Section 23.08. The obligations of Owner and Tenant under the provisions of
this Article with respect to any increase in the Fixed Rent, or any credit to
which Tenant may be entitled shall survive the expiration or any sooner
termination of the Demised Term. All sums payable by Tenant under this Article
shall be collectible by Owner in the same manner as Fixed Rent.

                                  ARTICLE 24

                                   No Waiver

     Section 24.01. Neither any option granted to Tenant in this Lease or in any
collateral instrument to renew or extend the Demised Term, nor the exercise of
any such option by Tenant, shall prevent Owner from exercising any option or
right granted or reserved to Owner in this Lease or in any collateral instrument
or which Owner may have by virtue of any law, to terminate this Lease and the
Demised Term or any renewal or extension of the Demised Term either during the
original Demised Term or during the renewed or extended term. Any termination of
this Lease and the Demised Term shall serve to terminate any such renewal or
extension of the Demised Term and any right of Tenant to any such renewal or
extension, whether or not Tenant shall have exercised any such option to renew
or extend the Demised Term. Any such option or right on the part of Owner to
terminate this Lease shall continue during any extension or renewal of the
Demised Term. No option granted to Tenant to renew or extend the Demised Term
shall be deemed to give Tenant any further option to renew or extend.

     Section 24.02. No act or thing done by Owner or Owner's agents during the
Demised Term shall constitute a valid acceptance of a surrender of the Demised
Premises or any remaining portion of the Demised Term except a written
instrument accepting such surrender, executed by Owner. No employee of Owner or
of Owner's agents shall have any authority to accept the keys of the Demised
Premises prior to the termination of this Lease and the Demised Term, and the
delivery of such keys to any such employee shall not operate as a termination of
this Lease or a surrender of the Demised Premises; however, if Tenant desires to
have Owner sublet the Demised Premises for Tenant's account. Owner or Owner's
agents are authorized to receive said keys for such purposes without releasing
Tenant from any of its obligations under this Lease, and Tenant hereby relieves
Owner of any liability for loss of, or damage to, any of Tenant's property or
other effects in connection with such subletting. The failure of Owner or Tenant
to seek redress for breach or violation of, or to insist upon the strict
performance of, any term, covenant or condition of this Lease on the other
party's part to be observed or performed, shall not prevent a subsequent act or
omission which would have originally constituted a breach or violation of any
such term, covenant or condition from having all the force and effect of an
original breach or violation. The receipt by Owner of rent or payment by Tenant
with knowledge of the breach or violation by Tenant or Owner as the case may be,
of any term, covenant or condition of this Lease on the other party's part to be
observed or performed shall not be deemed a waiver of such breach or violation.
Owner's failure to enforce any Building Rule against Tenant or against any other
tenant or occupant of the Building shall not be deemed a waiver of any such
Building Rule. No provision of this Lease shall be deemed to have been waived by
Owner or Tenant unless such waiver shall be set forth in a written instrument
executed by Owner and Tenant. No payment by Tenant or receipt by Owner of a
lesser amount than the aggregate of all Fixed Rent and additional rent then due
under this Lease shall be deemed to be other than an account of the first
accruing of all such items of Fixed Rent and additional rent then due, no
endorsement or statement on any check and no letter accompanying any check or
other rent payment in any such lessor amount and no acceptance of any such check
or other such payment by Owner shall constitute an accord and satisfaction, and
Owner may accept any such check or payment without prejudice to Owner's right to
recover the balance of such rent or to pursue any other legal remedy.
<PAGE>

                                      42

                                  ARTICLE 25

                        Mutual Waiver of Trial by Jury

     Section 25.01. Owner and Tenant hereby waive trial by jury in any action,
proceeding or counterclaim brought by Owner or Tenant against the other on any
matter whatsoever arising out of or in any way connected with this Lease, the
relationship of landlord and tenant, the use or occupancy of the Demised
Premises by Tenant or any person claiming through or under Tenant, any claim of
injury or damage, and any emergency or other statutory remedy, however, the
foregoing waiver shall not apply to any action for personal injury or property
damage. The provisions of the foregoing sentence shall survive the expiration or
any sooner termination of the Demised Term. If Owner commences any summary
proceeding for non-payment of rent, Tenant agrees not to interpose any non-
compulsory counterclaim of whatever nature or description in any such
proceeding.

                                  ARTICLE 26

                             Inability to Perform

     Section 26.01. If, by reason of strikes or other labor disputes, fire or
other casualty (or reasonable delays in adjustment of insurance), accidents,
orders or regulations of any Federal, State, County or Municipal authority, or
any other cause beyond Owner's reasonable control, whether or not such other
cause shall be similar in nature to those hereinbefore enumerated, Owner is
unable to furnish or is delayed in furnishing any utility or service required to
be furnished by Owner under the provisions of Article 29 or any other Article of
this Lease or any collateral instrument, or is unable to perform or make or is
delayed in performing or making any installations, decorations, repairs,
alterations, additions or improvements, whether or not required to be performed
or made under this Lease or under any collateral instrument, or is unable to
fulfill or is delayed in fulfilling any of Owner's other obligations under this
Lease or any collateral instrument, no such inability or delay shall constitute
an actual or constructive eviction, in whole or in part, or entitle Tenant to
any abatement or diminution of rent, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Owner or its agents
by reason of inconvenience or annoyance to Tenant, or injury to or interruption
of Tenant's business, or otherwise.

                                  ARTICLE 27

                                    Notices

     Section 27.01. Except as otherwise expressly provided in this Lease, any
bills, statements, notices, demands, requests or other communications given or
required to be given under this Lease shall be effective only if rendered or
given in writing, sent by registered or certified mail (return receipt requested
optional), addressed (a) to Tenant (i) at Tenant's address set forth in this
Lease if mailed prior to Tenant's taking possession of the Demised Premises for
the conduct of its business, or (ii) at the Building if mailed subsequent to
Tenant's taking possession of the Demised Premises for the conduct of its
business, or (iii) at any place where Tenant or any agent or employee of Tenant
may be found if mailed subsequent to Tenant's vacating, deserting, abandoning or
surrendering the Demised Premises, and, except in the case of bills and
statements, with a copy to Davis & Gilbert, 850 Third Avenue, New York, New York
10022, Attn. Real Estate Partner, or (b) to Owner at Owner's address set forth
in this Lease, with a copy to Goldfarb & Fleece, 345 Park Avenue, New York, New
York 10154 or (c) addressed to such other address as either Owner or Tenant may
designate as its new address for such purpose by notice given to the other in
accordance with the provisions of this Section. Any such bill, statement,
notice, demand, request or other communication shall be deemed to have been
rendered or given on the date when it shall have been mailed as provided in this
Section.

                                  ARTICLE 28

                              Partnership Tenant

     Section 28.01. If Tenant is a partnership (or is comprised of two (2) or
more persons, individually and as co-partners of a partnership) or if Tenant's
interest in this Lease shall be assigned to a partnership (or to two (2) or more
persons, individually and as co-partners of a partnership) pursuant to Article
11 (any such partnership and
<PAGE>

                                      43

such persons are referred to in this Section as "Partnership Tenant"), the
following provisions of this Section shall apply to such Partnership Tenant: (i)
the liability of each of the persons comprising Partnership Tenant shall be
joint and several, individually and as a partner, and (ii) each of the persons
comprising Partnership Tenant, whether or not such person shall be one of the
persons comprising Tenant at the time in question, hereby consents in advance
to, and agrees to be bound by, any written instrument which may hereafter be
executed, changing, modifying or discharging this Lease, in whole or in part, or
surrendering all or any part of the Demised Premises to Owner, and by any
notices, demands, requests or other communications which may hereafter be given
by Partnership Tenant or by any of the persons comprising Partnership Tenant,
and (iii) any bills, statements, notices, demands, requests or other
communications given or rendered to Partnership Tenant or to any of the persons
comprising Partnership Tenant shall be deemed given or rendered to Partnership
Tenant and to all such persons and shall be binding upon Partnership Tenant and
all such persons, and (iv) if Partnership Tenant shall admit new partners, all
of such new partners shall, by their admission to Partnership Tenant, be deemed
to have assumed performance of all of the terms, covenants and conditions of
this Lease on Tenant's part to be observed and performed, and shall be liable
for such performance, together with all other parties, jointly or severally,
individually and as a partner, and (v) Partnership Tenant shall give prompt
notice to Owner of the admission of any such new partners, and, upon demand of
Owner, shall cause each such new partner to execute and deliver to Owner an
agreement, in form satisfactory to Owner, wherein each such new partner shall so
assume performance of all of the terms, covenants and conditions of this Lease
on Tenant's part to be observed and performed (but neither Owner's failure to
request any such agreement nor the failure of any such new partner to execute or
deliver any such agreement to Owner shall vitiate the provisions of subdivision
(iv) of this Section).

                                  ARTICLE 29

                            Utilities and Services

     Section 29.01. Owner, at Owner's expense, shall furnish necessary passenger
elevator facilities on business days from 8:00 A.M. to 8:00 P.M. and shall have
an adequate number of passenger elevators subject to call at all other times.
Owner, at Owner's expense, shall furnish adequate freight elevator facilities on
business days from 8:00 a.m. to 6:00 p.m. subject to such reasonable rules as
Owner may adopt for the use of any freight elevator. Owner agrees to provide
such facility by designating the freight elevator shown as SE 2 on the plans
referred to in Schedule E for the exclusive use of Tenant during the days and
hours set forth above for freight elevators, provided, however, that Owner shall
have the right to use such freight elevator SE 2 for its own use or the use of
other tenants in the Building as and when necessary in Owner's reasonable
opinion and provided, further, that Owner shall not have such right in the event
that such use by Owner will result in an unreasonable diminution of the freight
elevator facilities to be provided to Tenant under the provisions of this
Section. Owner shall maintain and operate such freight elevator SE 2 at Tenant's
sole cost and expense and any such costs and expenses shall be paid by Tenant as
additional rent under this Lease. Tenant acknowledges that Tenant shall not
have the use of any other freight elevator in the Building, provided, however,
Tenant shall have the right to use the Building's other freight elevator,
together with Owner's own use and the use of other tenants in the Building,
during such periods that Owner shall be using freight elevator SE2 for its own
use or the use of other tenants in the Building or during periods when freight
elevator SE2 is not operational. At any time or times all or any of the
elevators in the Building may, at Owner's option, be automatic elevators, and
Owner shall not be required to furnish any operator service for automatic
elevators. If Owner shall, at any time, elect to furnish operator service for
any automatic elevators, Owner shall have the right to discontinue furnishing
such service with the same effect as if Owner had never elected to furnish such
service. Owner agrees that Owner shall not designate any of the passenger
elevators serving the Demised Premises for the exclusive use by any other tenant
of the Building, except for one (1) elevator serving the second (2nd) elevator
bank.

     Section 29.02. Owner, at Owner's expense (subject to the provisions of this
Section and Section 29.04), shall furnish and distribute to the Demised Premises
through the Building heating, ventilating and air conditioning (referred to as
"HVAC") systems, when required for the comfortable occupancy of the Demised
Premises, heated, cooled and outside air, at reasonable temperatures, pressures
and degrees of humidity and in reasonable volumes and velocities, on a year
round basis, from 8:00 a.m. to 8:00 p.m. on business days. Tenant understands
however that the equipment which will be employed in distributing air will be
connected to Tenant's electric meter and Tenant shall be responsible for payment
of all electricity consumed by such equipment. Notwithstanding the

<PAGE>

                                      44

foregoing provisions of this Section, Owner shall not be responsible if the
normal operation of the HVAC systems shall fail to provide conditioned air at
reasonable temperatures, pressures or degrees of humidity or in reasonable
volumes or velocities in any portions of the Demised Premises (a) which shall
have an electrical load in excess of four (4) watts per square foot of usable
area for all purposes (including lighting and power), or which shall have a
human occupancy factor in excess of one person per 100 square feet of usable
area (the average electrical load and human occupancy factors for which the HVAC
systems have been designed) or (b) because of any rearrangement of partitioning
or other Alterations made or performed by or on behalf of Tenant or any person
claiming through or under Tenant. Notwithstanding such design of the HVAC
systems, Tenant acknowledges that Owner's Initial Construction shall provide for
an electrical load in the Demised Premises which shall conform to the New York
State Energy Conservation Construction Code, and which accordingly may be less
than four (4) watts per square foot of usable area for all purposes (including
lighting and power.) Whenever said HVAC systems are in operation, Tenant agrees
to cause all the windows in the Demised Premises to be kept closed and to cause
the venetian blinds in the Demised Premises to be kept closed if necessary
because of the position of the sun. Tenant agrees to cause all the windows in
the Demised Premises to be closed whenever the Demised Premises are not
occupied. Tenant shall cooperate fully with Owner at all times and abide by all
reasonable regulations and requirements which Owner may reasonably prescribe for
the proper functioning and protection of the Building HVAC systems.

     Section 29.03. A. Provided Tenant shall keep the Demised Premises in order,
Owner, at Owner's expense, shall cause the office areas of the Demised Premises
to be cleaned substantially in accordance with the standards set forth in
Schedule C, all of the terms, covenants and conditions of which are incorporated
in this Lease by reference and shall be deemed a part of this Lease, as though
fully set forth in the body of this Lease and shall cause Tenant's ordinary
office waste paper refuse to be removed. Tenant acknowledges that Owner's
obligation to cause the office areas of the Demised Premises to be cleaned
excludes any portions of the Demised Premises not used as office areas (e.g.,
storage, mail and computer areas, private lavatories and areas used for the
storage, preparation, service or consumption of food or beverages). Tenant shall
pay Owner at Building standard rates or, if there are no such rates, at
reasonable rates, for the removal of any of the Tenant's refuse or rubbish other
than ordinary office waste paper refuse, from the Building, and Tenant, at
Tenant's expense, shall cause all portions of the Demised Premises not used as
office areas to be cleaned daily in a manner reasonably satisfactory to Owner.
Tenant also shall cause all portions of the Demised Premises used for the
storage, preparation, service or consumption of food or beverages to be
exterminated against infestation by vermin, roaches or rodents regularly and, in
addition, whenever there shall be evidence of any infestation. Tenant shall
contract independently with Owner or its cleaning services contractor for the
removal of such other refuse and rubbish and for cleaning services in addition
to those furnished by Owner and for the purpose of providing extermination
services required to be performed by Tenant. Notwithstanding the foregoing
provisions of this Subsection A, in the event the Building shall no longer be
owned or managed by a Rudin (as defined in Section 31.07) Tenant shall have the
right to receive competitive bids for such cleaning services in addition to
those furnished by Owner and to employ the lowest bidder to provide such
additional services subject, however, to the right of Owner or its cleaning
services contractor to match such lowest bid.

     B. Tenant acknowledges and is aware that the cleaning services required to
be furnished by Owner pursuant to this Section may be furnished by a contractor
or contractors employed by Owner and agrees that Owner shall not be deemed in
default of any of its obligations under this Section 29.03 unless such default
shall continued for an unreasonable period of time after notice from Tenant to
Owner setting forth the specific nature of such default.

     Section 29.04. A. Tenant shall make arrangements to supply all electricity
in the Demised Premises, including, but not limited to, electricity to serve the
air-conditioning and ventilation equipment and hot water heater to be installed
by Owner as part of Owner's Initial Construction, by contracting directly with
the public utility corporation furnishing electricity to the Building and shall
pay said utility corporation for all current consumed in or about the Demised
Premises. In connection with the purchase of electric energy by Tenant, Owner
shall install on each floor comprising the Demised Premises a meter pan for one
meter which measures both demand and consumption. Tenant shall arrange with such
public utility corporation for the installation, at Tenant's sole cost and
expense, of such meters. Owner shall supply electricity to be used for the
Building peripheral heating system, public elevators and escalators, the
lighting for public stairs and other public areas,

<PAGE>
                                      45

Building and standard exit signs initially installed by Owner and elevator
directional signs serving the Demised Premises.

     B. If either the quantity or character of electrical service is changed by
the public utility corporation supplying electrical service to the Building or
is no longer available or suitable for Tenant's requirements, no such change,
unavailability or unsuitability shall constitute an actual or constructive
eviction, in whole or in part, or entitle Tenant to any abatement or diminution
of rent, or relieve Tenant from any of its obligations under this Lease, or
impose any liability upon Owner, or its agents, by reason of inconvenience or
annoyance to Tenant, or injury to or interruption of Tenant's business or
otherwise.

     C. Owner represents that the electrical feeder or riser capacity serving
the Demised Premises on the Commencement Date shall provide for an electrical
load of six (6) watts per square foot of rentable area connected load (of which
four (4) watts shall be for power and two (2) watts shall be for lighting) other
than during any period it is prohibited from doing so by any laws, orders, rules
and/or regulations of any applicable governmental authorities (including but not
limited to the New York State Energy Conservation Construction Code), in which
event the reference to six (6) watts hereinabove set forth shall, during such
period, be decreased to the maximum number of watts per rentable square foot
which is permitted by any such laws, orders, rules and/or regulations. The
foregoing shall be exclusive of the electrical power for the Building HVAC
systems. Any additional feeders or risers to supply Tenant's additional
electrical requirements, and all other equipment proper and necessary in
connection with such feeders or risers, shall be installed by Owner upon
Tenant's request, at the sole cost and expense of Tenant, provided that, in
Owner's reasonable judgment, such additional feeders or risers are necessary and
are permissible under applicable laws and insurance regulations and the
installation of such feeders or risers will not cause permanent damage or injury
to the Building or the Demised Premises or cause or create a dangerous or
hazardous condition or entail excessive or unreasonable alterations or repairs
to, interfere with, or disturb, other tenants or occupants of the Building.
Tenant covenants that at no time shall the use of electrical energy in the
Demised Premises exceed the capacity of the existing feeders or wiring
installations then serving the Demised Premises. Tenant shall not make or
perform or permit the making or performance of, any Alterations to wiring
installations or other electrical facilities in or serving the Demised Premises
or any additions to the business machines, office equipment or other appliances
in the Demised Premises which utilize electrical energy without the prior
consent of Owner in each instance, which consent shall not be unreasonably
withheld.

     Section 29.05. Owner, at Owner's expense shall furnish water to the Demised
Premises for ordinary lavatory, dishwasher, cleaning and drinking purposes,
subject to the provisions of this Section. If Tenant requires, uses or consumes
water for any purpose in addition to ordinary lavatory, dishwasher, cleaning and
drinking purposes, Owner may install a hot water meter and a cold water meter
and thereby measure Tenant's consumption of water for such additional purposes.
Tenant shall pay to Owner the cost of any such meters and their installation,
and Tenant shall keep any such meters and any such installation equipment in
good working order and repair, at Tenant's cost and expense. Tenant agrees to
pay for water consumed as shown on said meters and sewer charges, taxes and any
other governmental charges thereon, as and when bills are rendered. Tenant
understands that the hot water heater will be connected to Tenant's electric
meter and that Tenant shall be responsible for payment of all electricity
consumed by such equipment. For the purposes of determining the amount of any
sums required to be paid by Tenant under this Section, all hot and cold water
consumed during any period when said meters are not in good working order shall
be deemed to have been consumed at the rate of consumption of such water during
the most comparable period when such meters were in good working order.

     Section 29.06. The Fixed Rent does not reflect or include any charge to
Tenant for the furnishing or distributing of any freight elevator or HVAC
services to the Demised Premises during periods (referred to as "Overtime
Periods") other than the hours and days set forth above in this Article for the
furnishing and distributing of such services. Accordingly, if Owner shall
furnish any such freight elevator or HVAC services to the Demised Premises at
the request of Tenant during Overtime Periods. Tenant shall pay Owner for such
services an amount equal to one hundred and ten (110%) percent of the cost to
Owner of providing such services. Owner shall not be required to furnish any
such services during Overtime Periods, unless Owner has received reasonable
advance notice from Tenant requesting such services. If Tenant fails to give
Owner reasonable advance notice requesting such services during any Overtime
Periods, then, whether or not the Demised Premises are habitable during such
Periods, failure by Owner to furnish or distribute any such services during such
Periods shall not constitute an actual or constructive eviction, in whole or in
part, or entitle Tenant to any abatement or

<PAGE>

                                      46

diminution of rent, or relieve Tenant from any of its obligations under this
Lease, or impose any liability upon Owner or its agents by reason of
inconvenience or annoyance to Tenant, or injury to or interruption of Tenant's
business or otherwise.

     Section 29.07. Owner reserves the right to stop the service of the HVAC,
elevator, plumbing, electrical or other mechanical systems or facilities in the
Building when necessary by reason of accident or emergency, or for repairs,
alterations, replacements or improvements, wich, in the reasonable judgment of
Owner are desirable or necessary, until said repairs, alterations, replacements
or improvements shall have been completed. The exercise of such right by Owner
shall not constitute an actual or constructive eviction, in whole or in part, or
entitle Tenant to any abatement or diminution of rent, or relieve Tenant from
any of its obligations under this Lease, or impose any liability upon Owner or
its agents by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant's business, or otherwise. Owner shall employ reasonable
diligence in attempting to restore the operation of any such system or
facilities without any obligation, however, to employ labor at overtime or other
premium pay rates, except in cases of any emergency.

     Section 29.08. Owner agrees to reserve capacity in the Building's cooling
tower for up to 100 tons of supplemental air conditioning for Tenant until
August 1st, 1988. Tenant shall give notice to Owner, on or prior to August 1,
1988, of the capacity which Tenant requires. Tenant shall pay to Owner, on or
prior to the Commencement Date, a sum equal to THREE HUNDRED SEVENTY-FIVE ($375)
DOLLARS for each ton of air conditioning connected to such cooling tower
pursuant to any such notice by Tenant to Owner. During the Demised Term, Tenant
shall pay to Owner an annual fee for providing condenser water to service such
supplemental air conditioning at the rate of FOUR HUNDRED ($400) DOLLARS per
annum per ton of such supplemental air conditioning. Such sum of FOUR HUNDRED
($400) DOLLARS, shall be increased, from time to time, to reflect any increase
in Owner's cost of providing such service and over and above Owner's cost of
providing such service during the first year of the Demised Term.

                                  ARTICLE 30

                                   Captions

     Section 30.01. The captions preceding the Articles of this Lease have been
inserted solely as a matter of convenience and such captions in no way define or
limit the scope or intent of any provisions of this Lease.

                                  ARTICLE 31

                   Miscellaneous and Severability Provisions

     Section 31.01. The term "business days" as used in this Lease shall exclude
Saturdays, Sundays and holidays, the term "Saturdays" as used in this Lease
shall exclude holidays and the term "holidays" as used in this Lease shall mean
all days observed as legal holidays by either the New York State Government or
the Federal Government.

     Section 31.02. The terms "person" and "persons" as used in this Lease shall
be deemed to include natural persons, firms, corporations, associations and any
other private or public entities, whether any of the foregoing are acting on
their own behalf or in a representative capacity.

     Section 31.03. The term "prime rate" shall mean the rate of interest
announced publicly by Citibank. N.A., or its successor, from time to time, as
Citibank, N.A.'s or such successor's base rate, or if there is no such base
rate, then the rate of interest charged by Citibank, N.A. or to its successor to
its most creditworthy customers on commercial loans having a ninety (90) day
duration.

     Section 31.04. If any term, convenient or condition of this Lease or any
application thereof shall be invalid or unenforceable, the remainder of this
Lease and any other application of such term, covenant or condition shall not be
affected thereby.

     Section 31.05. Owner agrees that without Tenant's prior consent, which
Tenant agrees not to unreasonably withhold or delay. Owner shall not waive those
rights afforded to Owner under Section 23.03 of the Ground and Development
Rights Lease which require that the landlord thereunder not in any circumstance
use or permit the

<PAGE>
                                      47

use of the Theatre (as defined therein) for the showing of motion pictures or
other entertainment, or the display of books, magazines or other publications,
featuring lurid or sex oriented subjects or the operation of a "massage" parlor
or other sex oriented activity.

     Section 31.06. Owner and Tenant agree that wherever in this Lease the other
has agreed to be reasonable with respect to their approval or consent, except
for such circumstances where this Lease has specifically set forth time periods,
the giving of such approval or consent, or the denial of the same, as the case
may be, shall not be unreasonably delayed.

     Section 31.07. Subject to the following provisions of this Section, Owner
agrees that Owner shall not permit or maintain any exhibits in the lobby of the
Building without Tenant's consent, which consent shall not be unreasonably
withheld. Notwithstanding the foregoing provisions of this Section, Tenant
agrees that so long as the Building shall be owned or managed by Broadway 52nd
Associates or Rudin Management Co., Inc. or any of the following persons: Jack
Rudin, Lewis Rudin, Eric Rudin, Beth Rudin DeWoody, Madeleine Rudin Johnson,
William Rudin or Katherine Rudin, or any lineal descendant of any of the
foregoing persons or any trust formed for the benefit of any of the foregoing
persons including any such lineal descendants, or any firm, entity or
corporation in which any of the foregoing shall have an interest, Owner shall
not be required to obtain Tenant's consent to any such lobby exhibit (any such
person, trust, firm, entity or corporation is referred to herein as "Rudin").

     Section 31.08. So long as Owner shall maintain a directory of the lobby of
the Building, Owner shall make available to Tenant, Tenant's Proportionate Share
of the space in said directory for the listing of Tenant's name and the names of
any of the officers and employees of Tenant and any permitted occupants of the
Demised Premises. Notwithstanding the foregoing provisions of this Section.
Tenant agrees that Owner shall have the right to maintain, at its option, a
separate directory in the lobby of the Building for the listing of Tenant's name
and the names of any of the officers and employees of Tenant and any permitted
occupants of the Demised Premises.

     Section 31.09. Subject to the following provisions of this Section, Owner
agrees that, without Tenant's consent, which consent shall not be unreasonably
withheld, Owner shall not rent or permit occupancy of any portion of the
Building above the street floor level of the Building, and Tenant agrees that,
without Owner's consent, it shall not have the right to sublet all or
substantially all or any portion of the Demised Premises or permit occupancy of
all or any portion of the Demised Premises to any entity, for a primary use (i)
for the business of photographic, multilith or multigraph reproductions or
offset printing, (ii) for a retail banking trust company, depository, guarantee
or safe deposit business open to the general public, or opposed to executive,
general or administrative offices of such entity, (iii) as a retail office of a
savings bank or savings and loan association open to the general public, as
opposed to executive, general or administrative offices of such entity, (iv) by
the United States government, the City or State of New York, or any foreign
government, the United Nations or any agency or department of any of the
foregoing, (v) for a fast food restaurant, (vi) as an employment agency (other
than as an executive search firm which sees clients by appointment only), school
or vocational training center (vii) barber shop or beauty salon, or (viii) video
arcade. Tenant may, at its own cost and expense, make demand upon any tenant or
occupant of the Building for the cessation of any activity or business in
violation of the use restriction set forth in this Section, and enforce the
provisions of this Section by an action or proceeding in any court of competent
jurisdiction against any such tenant or occupant by injunction or otherwise.
Owner shall in no wise be liable or obligated to Tenant for any breach of the
foregoing restrictions by any other tenant or occupant of the Building, nor
shall any such breach in any way release or relieve Tenant of any of its
obligations hereunder. Notwithstanding the foregoing provisions of this Section.
Tenant agrees that so long as the Building shall be owned or managed by a Rudin
(as defined in Section 31.07), Owner shall not be required to obtain Tenant's
consent to Owner's renting or permitting the occupancy of any portion of the
Building above the street floor level of the Building to any of the foregoing
entities or for any of the foregoing uses.

     Section 31.10. Owner agrees that the Building shall contain a so-called
"cross-over" floor connecting the two (2) elevator banks of the Building. Tenant
acknowledges that in the event such cross-over floor shall become a part of the
Demised Premises pursuant to the provisions of this Lease that such floor may
contain such access corridors as shall be required by law or as Owner shall deem
necessary. The existence of such access corridor shall not constitute an actual
or constructive eviction in whole or in part, or entitle Tenant to any abatement
or diminution of rent or relieve Tenant of any of its obligations under this
Lease or impose any liability upon Owner

<PAGE>
                                      48

or its agents by reason of inconvenience or annoyance to Tenant, or injury to or
interruption of Tenant's business; or otherwise.

                                  ARTICLE 32

                              Adjacent Excavation

     Section 32.01. If an excavation shall be made upon land adjacent to the
Real Property, or shall be authorized to be made, Tenant shall afford to the
person causing or authorized to cause such excavation license to enter upon the
Demised Premises for the purpose of doing such work as said person shall deem
necessary to preserve the walls and other portions of the Building from injury
or damage and to support the same by proper foundations and no such entry shall
constitute an actual or constructive eviction, in whole or in part, or entitle
Tenant to any abatement or diminution of rent, or relieve Tenant from any of its
obligations under this Lease, or impose any liability upon Owner or said person.

                                  ARTICLE 33

                                Building Rules

     Section 33.01. Tenant shall observe faithfully, and comply strictly with,
and shall not permit the violation of the Building Rules set forth in Schedule B
annexed to and made a part of this Lease and such additional reasonable Building
Rules as Owner may, from time to time, adopt. All of the terms, covenants and
conditions of Schedule B are incorporated in this Lease by reference and shall
be deemed part of this Lease as though fully set forth in the body of this
Lease. The term "Building Rules" as used in this Lease shall include those set
forth in Schedule B and those hereafter made or adopted as provided in this
Section. In case Tenant disputes the reasonableness of any additional Building
Rule hereafter adopted by Owner, the parties hereto agree to submit the question
of the reasonableness of such Building Rule for decision to the Chairman of the
Board of Directors of the Management Division of the Real Estate Board of New
York, Inc., or its successor, or to such impartial person or persons as he may
designate, whose determination shall be final and conclusive upon Owner and
Tenant. Tenant's right to dispute the reasonableness of any additional Building
Rule shall be deemed waived unless asserted by service of a notice upon Owner
within thirty (30) days after the date upon which Owner shall give notice to
Tenant of the adoption of any such additional Building Rule. Owner shall have no
duty or obligation to enforce any Building Rule, or any term, covenant or
condition of any other lease, against any other tenant or occupant of the
Building, and Owner's failure or refusal to enforce any Building Rule or any
term, covenant or condition of any other lease against any other tenant or
occupant of the Building shall not constitute an actual or constructive
eviction, in whole or in part, or entitle Tenant to any abatement or diminution
of rent, or relieve Tenant from any of its obligations under this Lease, or
impose any liability upon Owner or its agents by reason of inconvenience or
annoyance to Tenant, or injury to or interruption of Tenant's business, or
otherwise. Any Building Rule not enforced generally against other tenants of the
Building shall not be enforced against Tenant.

                                  ARTICLE 34

                                    Broker

     Section 34.01. Owner and Tenant represent and warrant to each other that no
broker was responsible for bringing about this Lease and this Lease was
negotiated directly between Owner and Tenant. Tenant further represents and
warrants to Owner that Peter E. Pattison and Pattison Partners (collectively
"Pattison") have acted as Tenant's consultant and Tenant agrees to compensate
Pattison for acting as such consultant. The representing party shall indemnify
the other from all loss, cost, liability, damage and expense, including, but not
limiting to, reasonable counsel fees and disbursements, arising from any breach
of the foregoing representations, warranties and agreement.
<PAGE>

                                      49

                                  ARTICLE 35

                                Tenant's Access

           Section 35.01. Owner agrees Tenant shall be entitled to access to the
Demised Premises twenty-four (24) hours per day, seven days per week, subject to
the provisions of this Lease.

                                  ARTICLE 36

                               Arbitration, Etc.

           Section 36.01. A. Any dispute with respect to the reasonability of
any failure or refusal of Owner to grant its consent or approval to any request
for such consent or approval pursuant to the provisions of Sections 3.01 or
11.03 with respect to which request Owner has agreed, in such Sections, not
unreasonably to withhold such consent or approval shall be finally determined by
arbitration in the City of New York in accordance with the following provisions
of this subsection A. Within five (5) business days next following the giving of
any notice by either party to the other stating that it wishes such dispute to
be so determined, Owner and Tenant shall each give notice to the other setting
forth the name and address of an arbitrator designated by the party giving such
notice. If either party shall fail to give notice of such designation within
said five (5) business days, the arbitrator chosen by the other side shall make
the determination alone. The two arbitrators shall designate a third arbitrator.
If the two arbitrators shall fail to agree upon the designation of a third
arbitrator within five (5) business days after the designation of the second
arbitrator, then either party may apply to the Supreme Court of the State of New
York or to any other court having jurisdiction, for the designation of such
arbitrator. All arbitrators shall be persons who shall have had at least ten
(10) years continuous experience in the business of appraising or managing real
estate or acting as real estate agents or brokers in the Borough of Manhattan,
except in the event of arbitration of a dispute under Section 3.02 such
arbitrators shall be persons who are licensed architects in the State of New
York and who shall have had at least ten (10) years continuous experience as
architects in the Borough of Manhattan. The three arbitrators shall conduct such
hearings as they deem appropriate, making their determination in writing and
giving notice to Owner and Tenant of their determination as soon as practicable,
and if possible, within five (5) business days after the designation of the
third arbitrator; the concurrence of any two of said arbitrators shall be
binding upon Owner and Tenant, or, in the event no two of the arbitrators shall
render a concurrent determination, then the determination of the third
arbitrator designated shall be binding upon Owner and Tenant.

           B.  Any dispute arising out of the application of the Operating
Expenses provisions of Article 23, which is submitted to arbitration shall be
finally determined by arbitration in the City of New York in accordance with the
rules and regulations then obtaining of the American Arbitration Association or
its successor.

           C.  Any determination in arbitration shall be final and binding upon
the parties, whether or not a judgment shall be entered in any court. In making
their determination, the arbitrators shall not subtract from, add to, or
otherwise modify any of the provisions of this Lease. Owner and Tenant may, at
their own expense, be represented by counsel and employ expert witnesses in any
such arbitration.

           D.  Any dispute with respect to the reasonability of any failure or
refusal of Owner to grant its consent or approval to any request for such
consent or approval pursuant to any of the provisions of this Lease (other than
Sections 3.01 and 11.03) with respect to which Owner has convenanted not
unreasonably to withhold such consent or approval, and any dispute arising with
respect to the application of the Tax Payment provisions of Article 23 shall be
determined by applicable legal proceedings.

           E.  If the determination of any such legal proceedings, or of any
arbitration held pursuant to the provisions of this Section with respect to
disputes arising under Sections 3.01 and 11.03, shall be adverse to Owner. Owner
shall be deemed to have granted the requested consent or approval or be bound by
any determination as to Taxes and the increases in Fixed Rent relating thereto,
but that shall be Tenant's sole remedy in such event and Owner shall not be
liable to Tenant for a breach of Owner's covenant not unreasonably to withhold
such consent or approval, or otherwise.

           F.  Each party shall pay its own counsel and expert witness fees and
expenses, if any, connection with any arbitration held pursuant to the
provisions of this Section, including the expenses and fees of any arbitrator
<PAGE>

                                       50

selected by it in accordance with the provisions of this Section, and the
parties will share all other expenses and fees of any such arbitration.

                                  ARTICLE 37

                Option to Increase or Decrease Demised Premises

          Section 37.01. Tenant shall have the option, exercisable by notice
given to Owner on or prior to April 1, 1988, to (a) lease and add to the Demised
Premises either the entire sixteenth (16th) or the entire sixteenth (16th) and
seventeenth (17th) floors of the Building or (b) eliminate from the Demised
Premises either the entire fifteenth (15th) floor or the entire fourteenth
(14th) and fifteenth (15th) floors or the entire thirteenth (13th), fourteenth
(14th) and fifteenth (15th) floors of the Building (any such full floor is
referred to individually as an "Initial Option Space"). It is understood and
agreed that time is of the essence with respect to the exercise of such option
and, if Tenant does not exercise such option on or prior to April 1, 1988, any
notice of the exercise of such option given after April 1, 1988 shall be void
and of no force or effect.

          Section 37.02. In the event that Tenant shall give timely notice to
Owner exercising such option to either lease and add to, or eliminate from, the
Demised Premises any Initial Option Space or Spaces, as the case may be, in
accordance with the foregoing provisions of this Article then, from and after
the date of the timely exercise of such option, this Lease shall be deemed
modified as follows:

          (i)   The Demised Premises shall include, or exclude, as the case may
be, the Initial Option Space in question for all purposes of, and upon and
subject to all of the terms, covenants and conditions of this Lease, except as
herein otherwise provided, and Article 1 and all other applicable provisions of
this Lease shall be deemed modified accordingly.

          (ii)  The Fixed Rents set forth in subsection 1.03 A shall be either
increased or decreased, as the case may be, with respect to each Initial Option
Space: by the appropriate amount set forth next to such Initial Option Space on
Schedule G with respect to the 1st Rent Period; by the appropriate amount set
forth next to such Initial Option Space on Schedule G with respect to the 2nd
Rent Period; by the appropriate amount set forth next to such Initial Option
Space on Schedule G with respect to the 3rd Rent Period; and by the appropriate
amount set forth next to such Initial Option Space on Schedule G with respect to
the 4th Rent Period, and the monthly installments of the Fixed Rent set forth in
subsection 1.03 B, and the sum set forth in subsection 1.03 C, shall be
increased, or decreased, as the case may be, accordingly to reflect the
foregoing;

          (iii) Tenant's Proportionate Share shall be increased, or decreased,
as the case may be, with respect to each Initial Option Space, by the
appropriate percentages set forth next to such Initial Option Space on Schedule
G.

          (iv)  The sums Eleven Million Six Hundred Eighty-Two Thousand Nine
Hundred Thirty ($11,682,930) Dollars and Six Million Six Hundred Seventy-Five
Thousand Nine Hundred Sixty ($6,675,960) Dollars set forth in subparagraph III
D, of Schedule A shall be increased, or decreased, as the case may be, with
respect to each Initial Option Space, by the appropriate amount set forth next
to such Initial Option Space on Schedule G.

          Section 37.03. Upon request of Owner or Tenant, from time to time, the
parties shall execute and deliver to the other, an instrument in form reasonably
satisfactory to Owner, stating whether or not Tenant has exercised the option
contained in the provisions of Section 37.01, and setting forth all of the
modifications to this Lease resulting from the exercise of such option; however,
neither Owner's nor Tenant's failure to request the execution of such instrument
nor Owner's nor Tenant's failure to execute and deliver such instrument shall
vitiate the foregoing provisions of this Article.
<PAGE>

                                      51

                                  ARTICLE 38

                      Additional Space; Second Additional
                       Space; and Third Additional Space

          Section 38.01. A. Owner hereby leases to Tenant and Tenant hereby
hires from Owner an entire floor of the Building, such space to be designated by
Owner as hereinafter provided (the floor so designated is referred to as the
"Additional Space"), upon all of the then executory terms, covenants and
conditions contained in this Lease (including, but not limited to, the
provisions of Article 23), except as otherwise provided in this Article, for a
term to commence in accordance with the provisions of subsection B of this
Section (subject to the provisions of subsection C of this Section), and to end
on the Expiration Date, unless sooner terminated pursuant to any of the terms,
covenants or conditions of this Lease or pursuant to law.

           B.  Owner shall give notice to Tenant designating the location of the
Additional Space which, in any event, shall be a floor of the Building which is
contiguous with the Demised Premises (for the purpose of determining contiguity
under any of the provisions of this Lease, any floor of the Demised Premises
which may have been eliminated therefrom pursuant to the provisions of Section
11.03 shall be deemed a part of the Demised Premises), and setting forth the
commencement date of the term applicable to the Additional Space (subject to the
provisions of paragraph C of this Section), which date is referred to as the
"Expected Vacancy Date", and which shall be no sooner than the date which is
four (4) years and six (6) months following the Commencement Date and no later
than the date which is six (6) years and six (6) months following the
Commencement Date. Such notice shall be given at least six (6) months prior to
the Expected Vacancy Date.

           C.  Owner agrees that all leases affecting the Additional Space with
respect to the period between the date which is four (4) years and six (6)
months following the Commencement Date and the date which is six (6) years and
six (6) months following the Commencement Date shall have the same stated
expiration date, which date shall be no later than the date which is six (6)
years and six (6) months following the Commencement Date. However,
notwithstanding the foregoing, Owner and Tenant acknowledge the possibility that
all or any of the tenants or occupants of the Additional Space may not have
vacated and surrendered all or any portions of the Additional Space to Owner by
the Expected Vacancy Date. Accordingly, notwithstanding anything to the contrary
contained in paragraph B of this Section, (a) the term of this Lease applicable
to the Additional Space shall commence (i) on the Expected Vacancy Date with
respect to those portions, if any, of the Additional Space which are vacant on
the Expected Vacancy Date, and (ii) with respect to those portions, if any, of
the Additional Space which are not vacant on the Expected Vacancy Date, on the
respective later date or dates upon which such portions of the Additional Space
become vacant and Owner gives notice to Tenant of such vacancy; (b) the
Expiration Date shall not be affected thereby; (c) the increases in the Fixed
Rent, Tenant's Proportionate Share and all other modifications of this Lease
resulting from the application of the provisions of this Section shall be
equitably adjusted to reflect the fact that all or any portions of the
Additional Space have not been leased and added to the Demised Premises on the
Expected Vacancy Date but are leased and added to the Demised Premises on a date
or dates after the Expected Vacancy Date; (d) except as set forth in this
sentence, neither the validity of this Lease nor the obligations of Tenant
under this Lease shall be affected thereby; (e) Tenant waives any rights under
Section 223-a of the Real Property Law of New York or any successor statute of
similar import to rescind this Lease and further waives the right to recover any
damages from Owner which may result from the failure of Owner to deliver
possession of all or any portions of the Additional Space on the Expected
Vacancy Date; and (f) Owner shall institute, within twenty (20) days after the
Expected Vacancy Date, possession proceedings against any tenants and occupants
who have not vacated and surrendered all or any portion of the Additional Space
and shall prosecute such proceedings to completion with reasonable diligence.

           D.  On the effective commencement date of the term applicable to the
Additional Space this Lease shall be deemed modified as follows:

               (i) The Demised Premises shall include the Additional Space
           (together with all appurtenances, fixtures, improvements, additions
           and other property attached thereto or installed therein at the
           commencement at the term applicable to the Additional Space or at any
           time during said term other than Tenant's Personal Property) for all
           purposes of this Lease;
<PAGE>

                                      52

               (ii)  The Fixed Rent shall be increased as follows: for the
        period from the effective commencement date of the term applicable to
        the Additional Space to the last day of the 1st Rent Period (in the
        event such term shall commence prior to the last day of the 1st Rent
        Period) by a sum equal to Twenty-six ($26.00) Dollars multiplied by the
        number of rentable square feet set forth on Schedule D opposite the
        floor designated by Owner as the Additional Space; commencing with the
        first day of the 2nd Rent Period (or, in the event the term applicable
        to the Additional Space shall commence during the 2nd Rent Period,
        then for the period from the commencement date of such term to the last
        day of said Period) by a sum equal to Thirty-one ($31.00) Dollars
        multiplied by the number of rentable square feet set fourth in Schedule
        D opposite the floor designated by Owner as the Additional Space; for
        the 3rd Rent Period by a sum equal to Thirty-six ($36.00) Dollars
        multiplied by the number of rentable square feet set forth in Schedule D
        opposite the floor designated by Owner as the Additional Space: and for
        the 4th Rent Period, by a sum equal to Thirty-nine ($39.00) Dollars
        multiplied by the number of rentable square feet set forth in Schedule D
        opposite the floor designated by Owner as the Additional Space; the
        amounts computed as aforesaid shall be deemed inserted in the
        appropriate columns in subsection 1.03.A.(ii) opposite the floor
        designated by Owner as the Additional Space:

               (iii) The monthly instalments of Fixed Rent set forth in
        subsection 1.03.B shall be increased

               (iv)  Tenant's Proportionate Share, as set forth in subsection E
        of Section 23.01, shall be increased by the percentage set forth in the
        column of Schedule D entitled "Tenant's Proportionate Share" opposite
        the floor designated by Owner as the Additional Space. (For example, if
        Tenant's Proportionate Share, as it may have been increased, shall then
        be 47.8% and if the percentage set forth in said column opposite the
        floor so designated by Owner shall be 3.2%, Tenant's Proportionate Share
        shall be increased to 51%).

        E.  Tenant agrees to accept the Additional Space in the condition which
shall exist at the commencement of the term applicable thereto, as is, and
agrees that Owner will not be required to make any alterations, additions,
improvements or decorations thereto in order to prepare the Additional Space for
Tenant's occupancy, except that on or about the commencement of the term
applicable to all or any portion of the Additional Space, Owner agrees to make
any repairs to such Space required to be made by Owner pursuant to the
provisions of subdivision (ii) of Section 5.02.

        F. In the event that the Additional Space has not by the effective
commencement date of the term applicable been previously prepared for use by
another occupant. Owner agrees that Tenant shall be entitled to a rent holiday
equal to a sum determined by multiplying Twenty ($20) Dollars by the number of
rentable square feet set forth on Schedule D opposite the floor designated by
Owner as the Additional Space. Said rent holiday shall be reflected by a
reduction in the monthly instalments of Fixed Rent applicable to the Additional
Space commencing with the effective commencement date applicable to the
Additional Space until such rent holiday shall be exhausted.

        Section 38.02. A. Owner hereby leases to Tenant and Tenant hereby hires
from Owner an entire floor of the Building such space to be designated by Owner
as hereinafter provided (the floor so designated is referred to as the "Second
Additional Space"), upon all the then executory terms, covenants and conditions
contained in this Lease (including, but not limited to, the provisions of
Article 23), except as otherwise provided in this Article, for a term to
commence in accordance with the provisions of subsection B of this Section
(subject to the provisions of subsection C of this Section), and to end on the
Expiration Date, unless sooner terminated pursuant to any of the terms,
covenants or conditions of this Lease or pursuant to law.

        B.  Owner shall give notice to Tenant designating the location of the
Second Additional Space which, in any event, shall be a floor of the Building
which is contiguous with the Demised Premises and setting forth the commencement
date of the term applicable to the Second Additional Space (subject to the
provisions of paragraph C of this Section), which date is referred to as the
"Second Expected Vacancy Date", and which shall be no sooner than the date
which is nine (9) years and six (6) months next following the Commencement Date
and no later than the eleventh (11th) anniversary of the Commencement Date. Such
notice shall be given at least six (6) months prior to the Second Expected
Vacancy Date.
<PAGE>

                                      53

            C.  Owner agrees that all leases affecting the Second Additional
Space with respect to the period between the date which is nine (9) years and
six (6) months next following the Commencement Date and the eleventh (11th)
anniversary of the Commencement Date shall have the same stated expiration date,
which date shall be no later than the eleventh (11th) anniversary of the
Commencement Date. However, notwithstanding the foregoing, Owner and Tenant
acknowledge the possibility that all or any of the tenants or occupants of the
Second Additional Space may not have vacated and surrendered all or any portions
of the Second Additional Space to Owner by the Second Expected Vacancy Date.
Accordingly, notwithstanding anything to the contrary contained in paragraph B
of this Section, (a) the term of this Lease applicable to the Second Additional
Space shall commence (i) on the Second Expected Vacancy Date with respect to
those portions, if any, of the Second Additional Space which are vacant on the
Second Expected Vacancy Date, and (ii) with respect to those portions, if any,
of the Second Additional Space which are not vacant on the Second Expected
Vacancy Date, on the respective later date or dates upon which such portions of
the Second Additional Space become vacant and Owner gives notice to Tenant of
such vacancy; (b) the Expiration Date shall not be affected thereby; (c) the
increases in the Fixed Rent, Tenant's Proportionate Share and all other
modifications of this Lease resulting from the application of the provisions of
this Section shall be equitably adjusted to reflect the fact that all or any
portions of the Second Additional Space have not been leased and added to the
Demised Premises on the Second Expected Vacancy Date but are leased and added to
the Demised Premises on a date or dates after the Second Expected Vacancy Date;
(d) except as set forth in this sentence, neither the validity of this Lease nor
the obligations of Tenant under this Lease shall be affected thereby; (e) Tenant
waives any rights under Section 223-a of the Real Property Law of New York or
any successor statute of similar import to rescind this Lease and further waives
the right to recover any damages from Owner which may result from the failure of
Owner to deliver possession of all or any portions of the Second Additional
Space on the Second Expected Vacancy Date; and (f) Owner shall institute, within
twenty (20) days after the Second Expected Vacancy Date, possession proceedings
against any tenants and occupants who have not vacated and surrendered all or
any portion of the Second Additional Space, and shall prosecute such proceedings
to completion with reasonable diligence.

            D.  On the effective commencement date of the term applicable to the
Second Additional Space, this Lease shall he deemed modified as follows:

                (i)   The Demised Premises shall include the Second Additional
            Space (together with all appurtenances, fixtures, improvements,
            additions and other property attached thereto or installed therein
            at the commencement of the term applicable to the Second Additional
            Space or at any time during said term, other than Tenant's Personal
            Property) for a1 purposes of this Lease;

                (ii)  The Fixed Rent shall be increased as follows: for the
            period from the effective commencement date of the term applicable
            to the Second Additional Space to the last day of the 2nd Rent
            Period (in the event such term shall commence prior to the last day
            of the 2nd Rent Period) by a sum equal to Thirty-two ($32.00)
            Dollars multiplied by the number of rentable square feet set forth
            on Schedule D opposite the floor designated by Owner as the Second
            Additional Space; commencing with the first day of the 3rd Rent
            Period (or, in the event the term applicable to the Second
            Additional Space shall commence during the 3rd Rent Period, then for
            the period from the commencement date of such term to the last day
            of said Period) by a sum equal to Thirty-Seven ($37.00) Dollars
            multiplied by the number of rentable square feet set forth in
            Schedule D opposite the floor designated by Owner as the Second
            Additional Space; and for the 4th Rent Period by a sum equal to
            Forty ($40.00) Dollars multiplied by the number of rentable square
            feet set forth in Schedule D opposite the floor designated by Owner
            as the Second Additional Space; the amounts computed as aforesaid
            shall be deemed inserted in the appropriate columns in subsection
            1.03.A.(ii) opposite the floor designated by Owner as the Second
            Additional Space;

                (iii) The monthly instalments of Fixed Rent set forth in
            subsection l.03.B. shall be increased accordingly;

                (iv)  Tenant's Proportionate Share, as set forth in subsection E
            of Section 23.01. shall be increased by the percentage set forth in
            the column of Schedule D entitled "Tenant's Proportionate Share"
            opposite the floor designated by Owner as the Second Additional
            Space.

            E.  Tenant agrees to accept the Second Additional Space in the
condition which shall exist at the commencement of the term applicable thereto,
as is, and agrees that Owner will not be required to make any
<PAGE>

                                      54

alterations, additions, improvements or decorations thereto in order to prepare
the Second Additional Space for Tenant's occupancy, except that on or about the
commencement of the term applicable to all or any portion of the Second
Additional Space Owner agrees to make any repairs to such Space required to be
made by Owner pursuant to the provisions of subdivision (ii) of Section 5.02.

          F. Owner agrees that Tenant shall not be required to pay that portion
of the Fixed Rent applicable to the Second Additional Space for the period from
the effective commencement date of the term applicable to the Second Additional
Space to and including the date one-hundred forty-three and 7/10th (143.7)
days thereafter.

          Section 38.03 A. Owner hereby leases to Tenant and Tenant hereby hires
from Owner an entire floor of the Building, such space to be designated by Owner
as hereinafter provided (the floor so designated is referred to as the "Third
Additional Space"), upon all the then executory terms, covenants and conditions
contained in this Lease (including, but not limited to, the provisions of
Article 23), except as otherwise provided in this Article, for a term to
commence in accordance with the provisions of subsection B of this Section
(subject to the provisions of subsection C of this Section), and to end on the
Expiration Date, unless sooner terminated pursuant to any of the terms,
covenants or conditions of this Lease or pursuant to law.

          B. Owner shall give notice to Tenant designating the location of the
Third Additional Space which, in any event, shall be a floor of the Building
which is contiguous with the Demised Premises and setting forth the commencement
date of the term applicable to the Third Additional Space (subject to the
provisions of paragraph C of this Section), which date is referred to as the
"Third Expected Vacancy Date", and which shall be no sooner than the date which
is fourteen (14) years and six (6) months next following the Commencement Date
and no later than the sixteenth (16th) anniversary of the Commencement Date.
Such notice shall be given at least six (6) months prior to the Third Expected
Vacancy Date.

          C. Owner agrees that all leases affecting the Third Additional Space
with respect to the period between the date which is fourteen (14) years and six
(6) months next following the Commencement Date and the sixteenth (16th)
anniversary of the Commencement Date shall have the same stated expiration date,
which date shall be no later than the sixteenth (16th) anniversary of the
Commencement Date. However, notwithstanding the foregoing, Owner and Tenant
acknowledge the possibility that all or any of the tenants or occupants of the
Third Additional Space may not have vacated and surrendered all or any portions
of the Third Additional Space to Owner by the Third Expected Vacancy Date.
Accordingly, notwithstanding anything to the contrary contained in paragraph B
of this Section, (a) the term of this Lease applicable to the Third Additional
Space shall commence (i) on the Third Expected Vacancy Date with respect to
those portions, if any, of the Third Additional Space which are vacant on the
Third Expected Vacancy Date, and (ii) with respect to those portions, if any, of
the Third Additional Space which are not vacant on the Third Expected Vacancy
Date, on the respective later date or dates upon which such portions of the
Third Additional Space become vacant and Owner gives notice to Tenant of such
vacancy; (b) the Expiration Date shall not be affected thereby; (c) the
increases in the Fixed Rent. Tenant's Proportionate Share and all other
modifications of this Lease resulting from the application of the provisions of
this Section shall be equitably adjusted to reflect the fact that all or any
portions of the Third Additional Space have not been leased and added to the
Demised Premises on the Third Expected Vacancy Date but are leased and added to
the Demised Premises on a date or dates after the Third Expected Vacancy Date;
(d) except as set forth in this sentence, neither the validity of this Lease nor
the obligations of Tenant under this Lease shall be affected thereby; (e) Tenant
waives any rights under Section 223-a of the Real Property Law of New York or
any successor statute of similar import to rescind this Lease and further waives
the right to recover any damages from Owner which may result from the failure of
Owner to deliver possession of all or any portions of the Third Additional Space
on the Third Expected Vacancy Date; and (f) Owner shall institute within twenty
(20) days after the Third Expected Vacancy Date, possession proceedings against
any tenants and occupants who have not vacated and surrendered all or any
portion of the Third Additional Space, and shall prosecute such proceedings to
completion with reasonable diligence.

          D. On the effective commencement date of the term applicable to the
Third Additional Space, this Lease shall be deemed modified as follows:

             (i) The Demised Premises shall include the Third Additional Space
          (together with all appurtenances, fixtures, improvements, additions
          and other property attached thereto or installed therein at the
<PAGE>

                                      55

         commencement of the term applicable to the Third Additional Space or at
         any time during said term, other than Tenant's Personal Property) for
         all purposes of this Lease;

             (ii)  The Fixed Rent shall be increased as follows: for the period
         from the effective commencement date of the term applicable to the
         Third Additional Space to the last day of the 3rd Rent Period (in the
         event such term shall commence prior to the last day of the 3rd Rent
         Period) by a sum equal to Thirty-eight ($38.00) Dollars multiplied by
         the number of rentable square feet set forth on Schedule D opposite the
         floor designated by Owner as the Third Additional Space; commencing
         with the first day of the 4th Rent Period (or, in the event the term
         applicable to the Third Additional Space shall commence during the 4th
         Rent Period, then for the period from the commencement date, of such
         term to the last day of said Period) by a sum equal to Forty-one
         ($41.00) Dollars multiplied by the number of rentable square feet set
         forth in Schedule D opposite the floor designated by Owner as the Third
         Additional Space; the amounts computed as aforesaid shall be deemed
         inserted in the appropriate columns in subsection 1.03.A.(ii) opposite
         the floor designated by Owner as the Third Additional Space;

             (iii) The monthly instalments of Fixed Rent set forth in subsection
         1.03.B. shall be increased accordingly;

             (iv)  Tenant's Proportionate Share, as set forth in subsection E
         of Section 23.01, shall be increased by the percentage set forth in the
         column of Schedule D entitled "Tenant's Proportionate Share" opposite
         the floor designated by Owner as the Third Additional Space.

         E. Tenant agrees to accept the Third Additional Space in the condition
which shall exist at the commencement of the term applicable thereto, as is, and
agrees that Owner will not be required to make any alterations, additions,
improvements or decorations thereto in order to prepare the Third Additional
Space for Tenant's occupancy, except that at or about the commencement of the
term applicable to all or any portion of the Third Additional Space Owner agrees
to make any repairs to such Space required to be made by Owner pursuant to the
provisions of subdivision (ii) of Section 5.02.

         F. Owner agrees that Tenant shall not be required to pay that portion
of the Fixed Rent applicable to the Third Additional Space for the period from
the effective commencement date of the term applicable to the Third Additional
Space to and including the date one-hundred thirty-four (134) days thereafter.

         Section 38.04 Upon request of Owner or Tenant, the parties shall
execute and deliver to the other, from time to time, an instrument or
instruments, in form reasonably satisfactory to Owner, setting forth all of the
modifications to this Lease resulting from the operation of the foregoing
provisions of this Article including, but not limited to, the effective
commencement date of the terms applicable to the Additional Space, Second
Additional Space and Third Additional Space; however, neither the failure of
Owner or Tenant to request the execution of any such instrument nor Owner's or
Tenants failure to execute and deliver any such instrument shall Article 38.

                                  ARTICLE 39

                         Options for Additional Space

         Section 39.01. A. Provided (a) Tenant shall not then be in default
under any of the terms, covenants or conditions of this Lease on Tenant's part
to be observed or performed beyond the applicable grace period for the curing of
any such default, and (b) Tenant (and/or any subsidiaries or affiliates of
Tenant as provided in Section 11.07) in contradistinction to subtenants or
other occupants, shall then be in occupancy of at least seventy-five (75%)
percent of the space leased to Tenant under this Lease (for the purpose of this
Article 39, any space leased to Tenant under this Lease which has been
eliminated from the Demised Premises pursuant to the provisions of Section 11.03
shall be deemed space leased to Tenant under this Lease), Tenant shall have the
option exercisable only by notice given to Owner on or prior to the date which
is eight (8) years and six (6) months next following the Commencement Date, to
lease and add to the Demised Premises an entire floor of the Building, such
space to be designated by Owner as hereinafter provided (the floor so designated
is referred to as the "First Option Additional Space"), upon all the then
executory terms, covenants and conditions contained in this Lease (including,
but not limited to, the provisions of Article 23), except as otherwise provided
in this Article, for a term to commence in
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                                      56

accordance with the provisions of subsection B of this Section (subject to the
provisions of subsection C of this Section), and to end on the Expiration Date,
unless sooner terminated pursuant to any of the terms, covenants or conditions
of this Lease or pursuant to law.

         B. In the event Tenant gives a timely notice to Owner, in accordance
with the provision of subsection A of this Section 39.01, exercising the option
set forth therein, Owner shall give notice to Tenant designating the location
of the First Option Additional Space and setting forth the commencement date
of the term applicable to the First Option Additional Space (subject to the
provisions ofparagraph C of this Section), which date is referred to as the
"Expected Possession Date", and which shall be no sooner than the date which is
nine (9) years and six (6) months next following the Commencement Date and no
later than the eleventh (11th) anniversary of the Commencement Date. Such
notice shall be given at least six (6) months prior to the Expected Possession
Date.

         C. Owner agrees that all leases affecting the First Option Additional
Space with respect to the period between the date which is nine (9) years and
six (6) months following the Commencement Date and the eleventh (11th)
anniversary of the Commencement Date shall have the same stated expiration date,
which date shall be no later than the eleventh (11th) anniversary of the
Commencement Date. However, notwithstanding the foregoing, Owner and Tenant
acknowledge the possibility that all or any of the tenants or occupants of the
First Option Additional Space may not have vacated and surrendered all or any
portions of the First Option Additional Space to Owner by the Expected
Possession Date. Accordingly, notwithstanding anything to the contrary contained
in paragraph B of this Section, (a) the term of this Lease applicable to the
First Option Additional Space shall commence (i) on the Expected Possession Date
with respect to those portions, if any, of the First Option Additional Space
which are vacant on the Expected Possession Date, and (ii) with respect to those
portions, if any, of the First Option Additional Space which are not vacant on
the Expected Possession Date, on the respective later date or dates upon which
such portions of the First Option Additional Space become vacant and Owner gives
notice to Tenant of such vacancy; (b) the Expiration Date shall not be affected
thereby; (c) the increases in the Fixed Rent, Tenant's Proportionate Share and
all other modifications of this Lease resulting from the application of the
provisions of this Section shall be equitably adjusted to reflect the fact that
all or any portions of the First Option Additional Space have not been leased
and added to the Demised Premises on the Expected Possession Date but are leased
and added to the Demised Premises on a date or dates after the Expected
Possession Date; (d) except as set forth in this sentence, neither the validity
of this Lease nor the obligations of Tenant under this Lease shall be affected
thereby; (e) Tenant waives any rights under Section 223-a of the Real Property
Law of New York or any successor statute of similar import to rescind this Lease
and further waives the right to recover any damages from Owner which may result
from the failure of Owner to deliver possession of all or any portions of the
First Option Additional Space on the Expected Possession Date; and (f) Owner
shall institute, within twenty (20) days after the Expected Possession Date,
possession proceedings against any tenants and occupants who have not vacated
and surrendered all or any portion of the First Option Additional Space, and
shall prosecute such proceedings to completion with reasonable diligence.

         D. On the effective commencement date of the term applicable to the
First Option Additional Space, this Lease shall be deemed modified as follows:

            (i)   The Demised Premises shall include the First Option Additional
         Space (together with all appurtenances, fixtures, improvements,
         additions and other property attached thereto or installed therein at
         the commencement of the term applicable to the First Option Additional
         Space or at any time during said term, other than Tenant's Personal
         Property) for all purposes of this Lease;

            (ii)  The Fixed Rent shall be increased as follows: for the period
         from the effective commencement date of the term applicable to the
         First Option Additional Space to the last day of the 2nd Rent Period
         (in the event such term shall commence prior to the expiration of the
         2nd Rent Period) by a sum equal to Thirty-three ($33.00) Dollars
         multiplied by the number of rentable square feet set forth on Schedule
         D opposite the floor designated by Owner as the First Option Additional
         Space; commencing with the first day of the 3rd Rent Period (or, in
         the event the term applicable to the First Option Additional Space
         shall commence during the 3rd Rent Period, then for the period from
         the commencement date of such term to the last day of said Period) by a
         sum equal to Thirty-eight ($38.00) Dollars multiplied by the number of
         rentable square feet set forth in Schedule D opposite the floor
         designated by Owner as the First Option Additional Space; and for the
         4th Rent Period by a sum equal to Forty-One ($41.00) Dollars
         multiplied by the number of rentable square

<PAGE>

                                      57

         feet set forth in Schedule D opposite the floor designated by Owner as
         the First Option Additional Space; the amounts computed as aforesaid
         shall be deemed inserted in the appropriate columns in subsection
         1.03.A.(ii) opposite the floor designated by Owner as the First Option
         Additional Space;

            (iii) The monthly instalments of Fixed Rent set forth in subsection
         l.03.B. shall be increased accordingly;

            (iv) Tenant's Proportionate Share, as set forth in subsection E
         of Section 23.01, shall be increased by the percentage set forth in the
         column of Schedule D entitled "Tenant's Proportionate Share" opposite
         the floor designated by Owner as the First Option Additional Space.

         E. Tenant agrees to accept the First Option Additional Space in the
condition which shall exist at the commencement of the term applicable thereto,
as is, and agrees that Owner will not be required to make any alterations,
additions, improvements or decorations thereto in order to prepare the First
Option Additional Space for Tenant's occupancy, except that on or about the
commencement of the term applicable to all or any portion of the First Option
Additional Space, Owner agrees to make any repairs to such Space required to be
made by Owner pursuant to the provisions of subdivision (ii) of Section 5.02.

         F. It is understood and agreed that time is of the essence with respect
to the exercise of the option set forth in subsection A of Section 39.01 and, if
Tenant does not exercise such option on or prior to the date which is eight (8)
years and six (6) months next following the Commencement Date any notice of the
exercise of such option given after the date which is eight (8) years and
six (6) months next following the Commencement Date shall be void and of no
further force or effect.

         G. Owner agrees that Tenant shall not be required to pay that portion
of the Fixed Rent applicable to the First Option, Additional Space for the
period from the effective commencement date of the term applicable to the First
Option Additional Space to and including the date one-hundred forty-three and
7/10th (143.7) days thereafter.

         Section 39.02 A. Provided (a) Tenant shall not then be in default under
any of the terms, covenants or conditions of this Lease on Tenant's part to be
observed or performed beyond any applicable grace period for the curing of any
such default, and (b) Tenant, (and/or any subsidiaries or affiliates of Tenant
as provided in Section 11.07) in contradistinction to subtenants or other
occupants, shall then be in occupancy of at least seventy-five (75%) percent of
the space leased to Tenant under this Lease. Tenant shall have the option
exercisable only by notice given to Owner on or prior to the date which is
thirteen (13) years and six (6) months next following the Commencement Date, to
lease and add to the Demised Premises an entire floor of the Building, such
space to be designated by Owner as hereinafter provided (the floor so designated
is referred to as the "Second Option Additional Space"), upon all the then
executory terms, covenants and conditions contained in this Lease (including,
but not limited to, the provisions of Article 23), except as otherwise provided
in this Article, for a term to commence in accordance with the provisions of
subsection B of this Section (subject to the provisions of subsection C of this
Section), and to end on the Expiration Date, unless sooner terminated pursuant
to any of the terms, covenants or conditions of this Lease or pursuant to law.

         B. In the event Tenant gives a timely notice to Owner, in accordance
with the provision of subsection A of this Section 39.02, exercising the option
set forth therein, Owner shall give notice to Tenant designating the location of
the Second Option Additional Space and setting forth the commencement date of
the term applicable to the Second Option Additional Space (subject to the
provisions of paragraph C of this Section), which date is referred to as the
"Second Expected Possession Date", and which shall be no sooner than the date
which is fourteen (14) years and six (6) months next following the Commencement
Date and no later than the sixteenth (16th) anniversary of the Commencement
Date. Such notice shall be given at least six (6) months prior to the Second
Expected Possession Date.

         C. Owner agrees that all leases affecting the Second Option Additional
Space with respect to the period between the date which is fourteen (14) years
and six (6) months following the Commencement Date and the sixteenth (16th)
anniversary of the Commencement Date shall have the same stated expiration date,
which date shall be no later than the sixteenth (16th) anniversary of the
Commencement Date. However, notwithstanding the foregoing, Owner and Tenant
acknowledge the possibility that all or any of the tenants or occupants of the
Second Option Additional Space may not have vacated and surrendered all or any
portions of the Second Option

<PAGE>

                                      58

Additional Space to Owner by the Second Expected Possession Date. Accordingly,
notwithstanding anything to the contrary contained in paragraph B of this
Section, (a) the term of this Lease applicable to the Second Option Additional
Space shall commence (i) on the Second Expected Possession Date with respect to
those portions, if any, of the Second Option Additional Space which are vacant
on the Second Expected Possession Date, and (ii) with respect to those portions,
if any, of the Second Option Additional Space which are not vacant on the Second
Expected Possession Date, on the respective later date or dates upon which such
portions of the Second Option Additional Space becomes vacant and Owner gives
notice to Tenant of such vacancy; (b) the Expiration Date shall not be affected
thereby; (c) the increases in the Fixed Rent, Tenant's Proportionate Share and
all other modifications of this Lease resulting from the application of the
provisions of this Section shall be equitably adjusted to reflect the fact that
all or any portions of the Second Option Additional Space have not been leased
and added to the Demised Premises on the Second Expected Possession Date but are
leased and added to the Demised Premises on a date or dates after the Second
Expected Possession Date; (d) except as set forth in this sentence, neither the
validity of this Lease nor the obligations of Tenant under this Lease shall be
affected thereby; (e) Tenant waives any rights under Section 223-a of the Real
Property Law of New York or any successor statute of similar import to rescind
this Lease and further waives the right to recover any damages from Owner which
may result from the failure of Owner to deliver possession of all or any
portions of the Second Option Additional Space on the Second Expected Possession
Date; and (f) Owner shall institute, within twenty (20) days after the Second
Expected Possession Date, possession proceedings against any tenants and
occupants who have not vacated and surrendered all or any portion of the Second
Option Additional Space, and shall prosecute such proceedings to completion with
reasonable diligence.

         D. On the effective commencement date of the term applicable to the
Second Option Additional Space, this Lease shall be deemed modified as follows:

            (i)   The Demised Premises shall include the Second Option
         Additional Space (together with all appurtenances, fixtures,
         improvements, additions and other property attached thereto or
         installed therein at the commencement of the term applicable to the
         Second Option Additional Space or at any time during said term, other
         than Tenant's Personal Property) for all purposes of this Lease;

            (ii)  The Fixed Rent shall be increased as follows: for the period
         from the effective commencement date of the term applicable to the
         Second Option Additional Space to the last day of the 3rd Rent Period
         (in the event such term shall commence prior to the expiration of the
         3rd Rent Period) by a sum equal to Thirty-nine ($39.00) Dollars
         multiplied by the number of rentable square feet set forth on Schedule
         D opposite the floor designated by Owner as the Second Optional
         Additional Space; commencing with the first day of the 4th Rent Period
         (or, in the event the term applicable to the Second Option Additional
         Space shall commence during the 4th Rent Period, then for the period
         from the commencement date of such term to the last day of said Period)
         by a sum equal to Forty-two ($42.00) Dollars multiplied by the number
         of rentable square feet set forth in Schedule D opposite the floor
         designated by Owner as the Second Option Additional Space; the amounts
         computed as aforesaid shall be deemed inserted in the appropriate
         columns in subsection l.03.A.(ii) opposite the floor designated by
         Owner as the Second Option Additional Space;

            (iii) The monthly instalments of Fixed Rent set forth in subsection
         1.03.B. shall be increased accordingly;

            (iv)  Tenant's Proportionate Share, as set forth in subsection E of
         Section 23.01, shall be increased by the percentage set forth in the
         column of Schedule D entitled "Tenant's Proportionate Share" opposite
         the floor designated by Owner as the Second Option Additional Space.

         E. Tenant agrees to accept the Second Option Additional Space in the
condition which shall exist at the commencement of the term applicable thereto,
as is, and agrees that Owner will not be required to make any alterations,
additions, improvements or decorations thereto in order to prepare the Second
Option Additional Space for Tenant's occupancy except that on or about the
commencement of the term applicable to all or any portion of the Second Option
Additional Space Owner agrees to make any repairs to such Space required to be
made by Owner pursuant to the provisions of subdivision (ii) of Section 5.02.

         F. It is understood and agreed that time is of the essence with respect
to the exercise of the option set forth in subsection A of Section 39.02
and, if Tenant does not exercise such option on or prior to the date which
is
<PAGE>

                                      59

thirteen (13) years and six (6) months next following the Commencement Date any
notice of the exercise of such option given after the date which is thirteen
(13) years and six (6) months next following the Commencement Date shall be void
and of no further force or effect.

         G. Owner agrees that Tenant shall not be required to pay that portion
of the Fixed Rent applicable to the Second Option Additional Space for the
period from the effective commencement date of the term applicable to the Second
Option Additional Space to and including the date one-hundred thirty-four (134)
days thereafter.

         Section 39.03. A. Upon request of Owner or Tenant, the parties from
time to time, will execute and deliver to the other, an instrument in form
satisfactory to Owner, stating whether or not Tenant has exercised the options
contained in the provisions of Section 39.01 and 39.02; as the case may be;
however, neither Owner's or Tenant's failure to request the execution of such
instrument nor Owner's or Tenant's failure to execute and deliver such
instrument shall vitiate the foregoing provisions of this Article.

        B.  Upon request of Owner or Tenant, the parties from time to time, will
execute and deliver to the other, instruments, in form satisfactory to Owner,
setting forth all of the modifications to this Lease resulting from the exercise
of any of such options including, but not limited to, the effective commencement
date of the term applicable to the First Option Additional Space and Second
Option Additional Space, as the case may be; however, neither Owner's or
Tenant's failure to request the execution of such instrument nor Owner's or
Tenant's failure to execute and deliver such instrument shall vitiate the
foregoing provisions of this Article.

        Section 39.04. Notwithstanding the foregoing provisions of this Article,
Owner recognizes and shares Tenant's preference to have the First Option
Additional Space and Second Option Additional Space contiguous to the other
floors containing the Demised Premises and serviced by the same elevator bank
provided, however, Tenant acknowledges that the foregoing provisions of this
Section is a recognition by Owner of Tenant's preference only and Owner shall
have no obligation to make any such Space so contiguous or served by the same
elevator bank.

                                  ARTICLE 40

                           Tenant's Renewal Options

        Section 40.01. A. Provided (a) Tenant is not then in default under any
of the terms, covenants or conditions of this Lease on Tenant's part to be
observed or performed beyond the applicable grace period for the curing of any
such default and (b) Tenant, (and/or any subsidiaries or affiliates of Tenant as
provided in Section 11.07) in contradistinction to subtenants or other
occupants, shall then be in occupancy of at least seventy-five (75%) percent of
the space leased to Tenant under this Lease (for the purposes of this Article 40
any space leased to Tenant under this Lease which has been eliminated from the
Demised Premises pursuant to the provisions of Section 11.03 shall be deemed to
be space leased to Tenant under this Lease) Tenant shall have the option to
renew this Lease and the Demised Term for a first renewal term (the "First
Renewal Term") of ten (10) years commencing on the date (the "First Renewal
Date") next following the Expiration Date fixed in this Lease pursuant to the
provisions of Article 1 (the "Original Expiration Date"), and ending, unless
sooner terminated pursuant to the terms, covenants or conditions of this Lease
or pursuant to law, on the date (the "First Extended Expiration Date") which is
the tenth (10th) anniversary date of the Original Expiration Date. If the Tenant
exercises such option in accordance with the provisions and limitations of this
Article, this Lease and the Demised Term shall be renewed for the First Renewal
Term at a Fixed Rent equal to (i) ninety-five (95%) percent of the fair market
annual rental value of all portions of the Demised Premises other than those, if
any, leased and added to the Demised Premises pursuant to the provisions of
Articles 38, 39 and 41 and one-hundred (100%) percent of the fair market annual
rental value of any portions of the Demised Premises so leased and added
thereto, as of the date between the First Renewal Notice Date (as defined in
subsection B of this Section) and the first (1st) anniversary of the First
Renewal Notice Date as of which such fair market annual rental value shall have
been determined by agreement between Owner and Tenant or by arbitration as
hereinafter provided in Section 40.05, plus (ii) such adjustment to such fair
market annual rental value as shall be determined pursuant to the provisions of
Section 40.04 (but in no event shall such Fixed Rent for the Demised Premises
for the First Renewal Term be less than the Fixed Rent in effect on the Original
Expiration Date [before giving effect to any abatement or apportionment of Fixed
Rent]); and upon all of the other then executory terms, covenants and

<PAGE>

conditions contained in this Lease (including, but not limited to, the
provisions of Article 23 of this Lease) and the Original Expiration Date shall
be deemed extended to the First Extended Expiration Date.

         B. The option set forth in subsection 40.0l.A. may only be exercised by
notice given by Tenant to Owner on or prior to the last day (referred to as the
"First Renewal Notice Date") of the calendar month in which the day immediate1y
preceding the date which is nine (9) months next following the seventeenth
(17th) anniversary of the Commencement Date shall occur. Time is of the essence
with respect to the exercise of such option. Tenant shall not have the right to
give any such notice after the First Renewal Notice Date, and any notice given
after the First Renewal Notice Date purporting to exercise such option shall
have no force and effect.

         C. Notwithstanding the exercise by Tenant of the option set forth in
subsection 40.0l.A., if Tenant is dissatisfied with the fair market annual
rental value of the Demised Premises as determined by arbitration as hereinabove
provided in Section 40.05, Tenant shall have the single right exercisable by
notice given by Tenant to Owner on or prior to the date thirty (30) days next
following such determination to cancel the exercise of such option and in the
event such right is exercised by Tenant, such option to renew the Demised Term
for the First Renewal Term, as well as the options set forth in Sections 40.02
and 40.03, shall thereupon be deemed deleted from this Lease and of no further
force and effect so that Tenant shall have no further option to extend or renew
the Demised Term and this Lease and the Demised Term shall end, unless sooner
terminated pursuant to any of the terms, covenants or conditions of this Lease
or pursuant to law, on the Original Expiration Date. Time is of the essence with
respect to the exercise of such right on or prior to the date thirty (30) days
next following the determination as aforesaid, any notice given by Tenant to
Owner after said date purporting to exercise such right shall be void and of no
force and effect and the Demised Term shall be renewed as hereinabove provided.

         Section 40.02. A. Provided (a) Tenant is not then in default under any
of the terms, covenants or conditions of this Lease on Tenant's part to be
observed or performed beyond the applicable grace period for the curing of any
such default, and (b) Tenant shall have unconditionally exercised the option for
the First Renewal Term, and (c) Tenant (and/or any subsidiaries or affiliates of
Tenants as provided in Section 11.07) in contradistinction to subtenants or
other occupants, shall then be in occupancy of at least seventy-five (75%)
percent of the space leased to Tenant under this Lease, Tenant shall have the
option to renew this Lease and the Demised Term for a second, renewal term (the
"Second Renewal Term") of ten (10) years commencing on the date (the "Second
Renewal Date") next following the First Extended Expiration Date, and ending,
unless sooner terminated pursuant to the terms, covenants or conditions of this
lease or pursuant to law, on the date (the "Second Extended Expiration Date")
which is the tenth (10th) anniversary date of the First Extended Expiration
Date. If Tenant exercises such option in accordance with the provisions and
limitations of this Article, this Lease and the Demised Term shall be renewed
for the Second Renewal Term at a Fixed Rent equal to (i) one-hundred (100%)
percent of the fair market annual rental value of the Demised Premises as of the
date between the seventh (7th) anniversary of the Original Expiration Date and
the eighth (8th) anniversary of the Original Expiration Date as of which such
fair market annual rental value shall have been determined by agreement between
Owner and Tenant or by arbitration as hereinafter provided in Section 40.05,
plus (ii) such adjustment to such fair market annual rental value as shall be
determined pursuant to the provisions of Section 40.04 (but in no event shall
such Fixed Rent for the Demised Premises for the Second Renewal Term be less
than the Fixed Rent in effect on the First Extended Expiration Date [before
giving effect to any abatement or apportionment of Fixed Rent]); and upon all of
the other then executory terms, covenants and conditions contained in this Lease
(including, but not limited to, the provisions of Article 23 of this Lease) and
the First Extended Expiration Date shall be deemed extended to the Second
Extended Expiration Date.

         B. The option set forth in subsection 40.02.A. may only be exercised
by notice given by Tenant to Owner on or prior to the seventh (7th) anniversary
date of the Original Expiration Date. Time is of the essence with respect to the
exercise of such option. Tenant shall not have the right to give any such notice
after the seventh (7th) anniversary date of the Original Expiration Date, and
any notice given after the seventh (7th) anniversary date of the Original
Expiration Date purporting to exercise such option shall have no force and
effect.

         C. Notwithstanding the exercise by Tenant of the option set forth in
subsection 40.02.A., if Tenant is dissatisfied with the fair market annual
rental value of the Demised Premises as determined by arbitration as hereinabove
provided in Section 40.05, Tenant: shall have the single right exercisable by
notice given by Tenant to Owner on or prior to the date thirty (30) days next
following such determination, to cancel the exercise of such
<PAGE>

                                      61

option and in the event such right is exercised by Tenant, such option to renew
the Demised Term for the Second Renewal Term, as well as the option set forth in
Section 40.03 shall thereupon be deemed deleted from this Lease and of no
further force and effect so that Tenant shall have no further option to extend
or renew the Demised Term and this Lease and the Demised Term shall end, unless
sooner terminated pursuant to any of the terms, covenants or conditions of this
Lease or pursuant to law, on the First Extended Expiration Date. Time is of the
essence with respect to the exercise of such right on or prior to the date
thirty (30) days next following the determination as aforesaid, any notice given
by Tenant to Owner after said date purporting to exercise such right shall be
void and of no force and effect and the Demised Term shall be renewed as
hereinabove provided.

         Section 40.03. A. Provided (a) Tenant is not then in default under any
of the terms, covenants or conditions of this Lease on Tenant's part to be
observed or performed, and (b) Tenant shall have unconditionally exercised the
option for the Second Renewal Term, and (c) Tenant, (and/or any subsidiaries or
affiliates of Tenant as provided in Section 11.07), in contradistinction to
subtenant or other occupants, shall then be in occupancy of at least seventy-
five (75%) percent of the space leased to Tenant under this Lease, Tenant shall
have the option to renew this Lease and the Demised Term for a third renewal
term (the "Third Renewal Term") of seven (7) years commencing on the date (the
"Third Renewal Date") next following the Second Extended Expiration Date, and
ending, unless sooner terminated pursuant to the terms, covenants or conditions
of this Lease or pursuant to law, on the date (the "Third Extended Expiration
Date") which is the seventh (7th) anniversary date of the Second Extended
Expiration Date. If Tenant exercises such option in accordance with the
provisions and limitations of this Article, this Lease and the Demised Term
shall be renewed for the Third Renewal Term at a Fixed Rent equal to (i) one-
hundred (100%) percent of the fair market annual rental value of the Demised
Premises as of the date between the seventh (7th) anniversary of the First
Extended Expiration Date and the eighth (8th) anniversary of the First Extended
Expiration Date as of which such fair market annual rental value shall have been
determined by agreement between Owner and Tenant or by arbitration as
hereinafter provided in Section 40.05, plus (ii) such adjustment to such fair
market annual rental value as shall be determined pursuant to the provisions of
Section 40.04 (but in no event shall such Fixed Rent for the Demised Premises
for the Third Renewal Term be less than the Fixed Rent in effect on the Second
Extended Expiration Date [before giving effect to any abatement or apportionment
or Fixed Rent]) and upon all of the other then executory terms, covenants and
conditions contained in this Lease (including, but not limited to, the
provisions of Article 23 of this Lease) and the Second Extended Expiration Date
shall be deemed extended to the Third Extended Expiration Date.

         B. The option set forth in subsection 40.03.A. may only be exercised by
notice given by Tenant to Owner on or prior to the seventh (7th) anniversary
date of the First Extended Expiration Date. Time is of the essence with respect
to the exercise of such option. Tenant shall not have the right to give any such
notice after the seventh (7th) anniversary date of the First Extended Expiration
Date, and any notice given after the seventh (7th) anniversay date of the First
Extended Expiration Date purporting to exercise such option shall have no force
and effect.

         C. Notwithstanding the exercise by Tenant of the option set forth in
subsection 40.03.A., if Tenant is dissatisfied with the fair market annual
rental value of the Demised Premises as determined by arbitration as herein-
above provided in Section 40.05, Tenant shall have the single right exercisable
by notice given by Tenant to Owner on or prior to the date thirty (30) days next
following such determination, to cancel the exercise of such option and in the
event such right is exercised by Tenant, such option to renew the Demised Term
for the Third Renewal Term shall thereupon be deemed deleted from this Lease and
of no further force and effect so that Tenant shall have no further option to
extend or renew the Demised Term and this Lease and the Demised Term shall end,
unless sooner terminated pursuant to any of the terms, covenants or conditions
of this Lease or pursuant to law, on the Second Extended Expiration Date. Time
is of the essence with respect to the exercise of such right on or prior to the
date thirty (30) days next following the determination as aforesaid, any notice
given by Tenant to Owner after said date purporting to exercise such right shall
be void and of no force and effect and the Demised Term shall be renewed as
hereinabove provided.

         Section 40.04. A. For the purposes of this subsection A, Owner and
Tenant agree that the term "Price Index" shall mean the Consumer Price Index for
Urban Wage Earners and Clerical Workers based on the United States Cities
National Monthly Average For All Group Commodities and Items, published by the
United States Department of Labor, Bureau of Labor Statistics, or a successor
substitute index. If in any calendar year during the Demised Term the 1967
average of 100 is no longer used as the basis of calculation of the Price Index,
then
<PAGE>

                                       62

     for the purposes of this subsection A, the Price index for such calendar
     year shall be recalculated as though such 1967 average of 100 were still
     the basis of calculation of the Price Index for such calendar year. In the
     event such Price Index (or a successor substitute index) is not available,
     a reliable governmental or other non-partisan publication evaluating the
     information theretofore used in determining a Price Index shall be used to
     reflect the increase in the national cost of living.

          B. After the fair market annual rental value for the Demised Premises
     shall have been determined by agreement between Owner and Tenant or by
     arbitration as hereinafter provided, such fair market annual rental value
     shall be increased by adding to such fair market annual rental value a sum
     determined by multiplying such fair market annual rental value by the
     percentage increase in the Price Index for the month in which the First
     Renewal Date, Second Renewal Date, and Third Renewal Date, as the case may
     be, shall occur above the Price Index for the month in which such fair
     market annual rental value for the Demised Premises shall have been so
     determined by agreement or by arbitration.

          Section 40.05. In the event Owner and Tenant are unable to agree as to
     the fair market annual rental value of the Demised Premises, such fair
     market annual rental value shall be determined by arbitration as follows:

               (a)  Owner and Tenant shall each appoint an arbitrator within
          thirty (30) days after notice by either party requesting arbitration
          of the issue. If either Owner or Tenant shall have failed to appoint
          an arbitrator within such period of time, then such arbitrator shall
          be appointed by the American Arbitration Association, or its
          successor, or if at such time such association is not in existence and
          has no successor, then by the Presiding Justice of the Appellate
          Division, First Department, of the Supreme Court of the State of New
          York, or any successor court, upon request of either Owner or Tenant,
          as the case may be.

               (b)  The two arbitrators appointed as above provided, shall
          select a third arbitrator and if they fail to do so within thirty (30)
          days after their appointment, such third arbitrator shall be appointed
          as above provided for the appointment of an arbitrator in the event
          either party fails to do so.

               (c)  All of such arbitrators shall be real estate appraisers or
          brokers having at least fifteen (15) years of experience in such field
          in the Borough of Manhattan, City of New York.

               (d)  The three arbitrators, selected as aforesaid, forthwith
          shall convene and render their decision as to the fair market annual
          rental value of the Demised Premises as promptly as practicable after
          the appointment of the third arbitrator but in any event such decision
          shall be rendered before the date which is ninety (90) days prior to
          (i) the first (1st) anniversary of the First Renewal Notice Date with
          respect to the option set forth in Section 40.01, (ii) the eighth
          (8th) anniversary date of the Original Expiration Date with respect to
          the option set forth in Section 40.02, and (iii) the eighth (8th)
          anniversary date of the First Extended Expiration Date with respect to
          the option set forth in Section 40.03, as the case may be. The
          decision of such arbitrators shall be in writing and the vote of the
          majority of them (or, if there be no majority decision, then the
          decision of the last appointed arbitrator) shall be the decision of
          all and binding upon Owner and Tenant, whether or not a judgment shall
          be entered in any court. Duplicate original counterparts of such
          decision shall be sent by the arbitrators to both Owner and Tenant.

               (e)  The arbitrators, in arriving at their decision, shall be
          entitled to consider all testimony and documentary evidence which may
          be presented at any hearing as well as facts and data which the
          arbitrators may discover by investigation and inquiry outside of such
          hearings. The arbitrators shall be bound by the provisions of this
          Lease, and shall not add to, subtract from or otherwise modify such
          provisions however, the differences, if any, between the escalation
          provisions employed in this Lease and those generally employed in
          other leases at the time shall be taken into account in the
          determination of fair market annual rental value. The cost and expense
          of such arbitration shall be borne equally by Owner and Tenant, except
          that each party shall pay its own counsel fees and expenses.

               (f)  The sole function of the arbitrators shall be the
          determination of the fair market annual rental value of the Demised
          Premises. Notwithstanding the findings of the arbitrators, the Fixed
          Rent during (i) the First Renewal Term shall not be less than the
          Fixed Rent in effect on the Original Expiration Date (before giving
          effect to any abatement or apportionment of Fixed Rent), (ii) the
          Second Renewal Term shall not be less than the Fixed Rent in effect on
          the First Extended Expiration Date (before giving effect to any
          abatement or apportionment of Fixed Rent), and (iii) the Third Renewal
          Term shall not be less than the Fixed Rent in
<PAGE>

                                       63

     effect on the Second Extended Expiration Date (before giving effect to any
     abatement or apportionment of Fixed Rent).

     Section 40.06. Owner shall not be required to make any alterations, perform
any work, give Tenant any credit towards work or rent holidays in connection
with the exercise by Tenant of the first, second or third renewal options set
forth in Sections 40.01, 40.02 or 40.03.

     Section 40.07. Notwithstanding anything contained to the contrary in
Sections 40.01, 40.02 or 40.03, in the event that, on the date of the exercise
of the options set forth in Section 40.01, and/or 40.02 and/or 40.03, more than
two (2) entire floors in the Building then comprising the Demised Premises are
occupied by subtenants or occupants other than Tenant (and/or any subsidiaries
or affiliates of Tenant as provided in Section 11.07) then, in such event, the
renewal options set forth in Section 40.01, and/or 40.02 and/or 40.03, as the
case may be, shall apply only to the space then occupied by Tenant (and/or any
subsidiaries or affiliates of Tenant as provided in Section 11.07), in
contradistinction to subtenants or other occupants, all references in this
Article to the Demised Premises shall relate only to such space for which Tenant
is permitted to renew this Lease pursuant to the foregoing provisions of this
Section 40.07, and (i) any determination of the fair market annual rental value
of the Demised Premises pursuant to the provisions of this Article (ii)
reference to the Fixed Rent in effect on the Original Expiration Date and/or the
First Extended Expiration Date and/or the Second Extended Expiration Date shall
mean a detemination of the fair market annual rental value of, or the Fixed Rent
in effect with respect to (as the case may be) such space as to which this Lease
has been renewed, and Tenant's Proportionate Share (as defined in Article 23)
shall be deemed reduced in the proportion which the area of the Demised Premises
as to which this Lease has been renewed bears to the total area of the Demised
Premises as to which this Lease would have been renewed had this Section 40.07
not applied. Notwithstanding the foregoing, in the event that Tenant desires
that all such doors remain included in the Demised Premises, Tenant may so elect
when Tenant exercises the appropriate option. However, with respect to such
floors and the First Renewal Term only, the applicable renewal option shall be
at one hundred (100%) percent of fair market annual rental value.

     Section 40.08. A. Upon request of Owner or Tenant, the parties from time to
time, will execute and deliver to the other, an instrument in form reasonably
satisfactory to Owner, stating whether or not Tenant has exercised the options
contained in the provisions of Section 40.01, 40.02 and 40.03, as the case may
be, and whether or not Tenant shall have exercised or be deemed to have
exercised the rights set forth in subsection C of the relevant one of such
Sections to cancel the exercise of any such options; however, neither Owner's or
Tenant's failure to request the execution of such instrument nor Owner's or
Tenant's failure to execute and deliver such instrument shall vitiate the
foregoing provisions of this Article.

     B. Upon request of Owner or Tenant, the parties from time to time, will
execute and deliver to the other, instruments in form reasonably satisfactory to
Owner, setting forth all of the modifications to this Lease resulting from the
exercise of any of such options or rights including, but not limited to, the
Fixed Rent during the First Renewal Term, Second Renewal Term and/or Third
Renewal Term, as the case may be; however, neither Owner's or Tenant's failure
to request the execution of such instrument nor Owner's or Tenant's failure to
execute and deliver such instrument shall vitiate the foregoing provisions of
this Article.

                                  ARTICLE 41

                     Rights For Further Additional Spaces

     Section 41.01. Provided (a) Tenant is not then in default under any of the
terms, covenants or conditions of this Lease on Tenant's part to be observed or
performed beyond the applicable grace period for the curing of any such default
(b) Tenant, (and/or any subsidiaries or affiliates of Tenant as provided in
Section 11.07) in contradistinction to subtenants or other occupants, shall then
be in occupancy of at least seventy-five (75%) percent of the space leased to
Tenant under this Lease (for the purpose of this Article 41, any space leased to
Tenant under this Lease which has been eliminated from the Demised Premises
pursuant to the provisions of Section 11.03 shall be deemed space leased to
Tenant under this Lease), Tenant shall have the option, subject to the
provisions of this Article, but only after the seventeenth (17th) anniversary of
the Commencement Date, exercisable in accordance with the provisions of Section
41.02, to lease and add to the Demised Premises any space in the Building which
becomes available for leasing during the Demised Term, as the same may be

<PAGE>

                                       64

extended pursuant to the provisions of Article 40. No such space shall be deemed
"available for leasing" if (a) the then tenant of such space, or any assignee,
subtenant or other occupant holding through or under such tenant, shall enter
into (i) any agreement with Owner extending the letting agreement affecting such
space, or (ii) any new lease with Owner affecting such space, or (b) any other
tenant in the Building or any assignee of such other tenant shall exercise any
contractual option or right which such tenant has to lease such space.
Notwithstanding the foregoing provisions of this Section 41.01, Tenant shall not
have the right to lease and add to the Demised Premises any space which becomes
available for leasing if, at the time of the exercise of such option by Tenant,
the remaining term of this Lease is less than five (5) years unless Tenant has
unconditionally exercised one of the renewal options set forth in Article 40 so
as to extend such remaining term for a period of five (5) years or more.

     Section 41.02. In the event that any such space shall become available for
leasing in accordance with the provisions of Section 41.01, Owner shall give
notice thereof to Tenant, (any such notice is referred to as an "Availability
Notice"), which Notice may be given up to eighteen (18) months prior to the date
set forth in such Notice on which such space is expected to become vacant and
available for leasing and, in such event, Tenant shall have the option,
exercisable only by notice given to Owner within thirty (30) days next following
the date of the giving of such Availability Notice to lease and add such space
to the Demised Premises; (any such space is referred to as an "Additional Option
Space"; any such date set forth in an Availability Notice is referred to as an
"Applicable Expected Vacancy Date"; and any notice given by Tenant to Owner
exercising any such option is referred to as an "Additional Option Notice"). In
the event that any Additional Option Space shall become available for leasing
sooner than the Applicable Expected Vacancy Date because of the expiration of
the term of the lease affecting such space, as opposed to the termination of
said lease prior to its original expiration date, Owner shall have the right to
accelerate the Applicable Expected Vacancy Date by not less than sixty (60) days
notice to Tenant. Any such space shall be leased and added to the Demised
Premises at an annual rental rate equal to the fair market annual rental of the
applicable Additional Option Space on the commencement date of the term
applicable thereto, as determined by agreement between Owner and Tenant or by
arbitration in accordance with the provisions of Section 41.07, except, however,
that such annual rental rate per rentable square foot shall not in any event be
less than the last annual rental rate per rentable square foot required to be
paid to Owner by the previous occupant of such space (of, if there shall be more
than one such occupant, at the last average annual rental rate per rentable
square foot required to be paid to Owner by such occupants) but such Additional
Option Space shall otherwise be leased and added to the Demised Premises upon
the same executory terms, covenants and conditions as are contained in this
Lease (including, but not limited to, the provisions of Article 23) except as
otherwise provided in this Article, adjusted to reflect (x) the number of
rentable square feet contained in the applicable Additional Option Space (as set
forth on Schedule D opposite the floor designated by Owner in the applicable
Availability Notice in the event such Space shall constitute an entire floor, or
if less than an entire floor as set forth by Owner in such Availability Notice),
and (y) that the term shall commence on the Applicable Expected Vacancy Date, as
the same may have been accelerated by Owner pursuant to the provisions of this
Section 41.02, subject however, to the provisions of Section 41.03.

     Section 41.03. Owner and Tenant acknowledge the possibility that all or any
of the tenants or occupants of any Additional Option Space may not have vacated
and surrendered all or any portions of the Additional Option Space to Owner by
the Applicable Expected Vacancy Date. Accordingly, notwithstanding anything to
the contrary contained in Sections 41.01 or 41.02 or in any Availability Notice,
(a) the term of this Lease applicable to the Additional Option Space shall
commence (i) on the Applicable Expected Vacancy Date with respect to those
portions, if any, of the Additional Option Space which are vacant on the
Applicable Expected Vacancy Date, and (ii) with respect to those portions, if
any, of the Additional Option Space which are not vacant on the Applicable
Expected Vacancy Date on the respective later date or dates upon which such
portions of the Additional Option Space become vacant and Owner gives notice to
Tenant of such vacancy; (b) the Expiration Date shall not be affected thereby;
(c) the increases in the Fixed Rent, Tenant's Proportionate Share and all other
modifications of this Lease resulting from the application of the provisions of
this Article shall be equitably adjusted to reflect the fact that all or any
portions of the Additional Option Space have not been leased and added to the
Demised Premises on the Applicable Expected Vacancy Date but are leased and
added to the Demised Premises on a date or dates after the Applicable Expected
Vacancy Date; (d) except as set forth in this sentence neither the validity of
this Lease nor the obligations of Tenant under this Lease shall be affected
thereby; (e) Tenant waives any rights under Section 233-a of the Real Property
Law of New York or any successor statute of similar import to rescind this Lease
and further waives the right to recover any damages against Owner which may
result from the failure of
<PAGE>

                                       65

Owner to deliver possession of all of any portions of the Additional Option
Space on the Applicable Expected Vacancy Date; and (f) Owner shall institute,
within twenty (20) days after the Applicable Expected Vacancy Date, possession
proceedings against any tenants or occupants who have not vacated and
surrendered all or any portion of the Additional Option Space, and shall
prosecute such proceedings to completion with reasonable diligence.

     Section 41.04. It is understood and agreed that time is of the essence with
respect to the exercise of any option pursuant to this Article and that if
Tenant does not exercise such option within the time limitation set forth in
Section 41.02, any notice purporting to exercise such option given after the
expiration of such time limitation shall be void and of no force and effect.

     Section 41.05. On the effective commencement date of the term applicable to
any Additional Option Space, this Lease shall be deemed modified as follows:

          (i)   The Demised Premises shall include, the Additional Option Space
     (together with all appurtenances, fixtures, improvements, additions and
     other property attached thereto or installed therein at the commencement of
     the term applicable to the Additional Option Space or at any time during
     said term, other than Tenant's Personal Property) for all purposes of this
     Lease;

          (ii)  The Fixed Rent shall be increased, for the period from the
     commencement date of the term applicable to the Additional Option Space to
     the last day of the then current term of this Lease by a sum equal to the
     annual rental rate determined as provided in Section 41.02 and the amount
     so determined shall be deemed inserted in the appropriate columns opposite
     the floor designated by Owner as the Additional Option Space in subsection
     1.03.A.(ii);

          (iii) The monthly instalments of Fixed Rent set forth in subsection
     1.03.B. shall be increased accordingly;

          (iv)  Tenant's Proportionate Share, as set forth in subsection E of
     Section 23.01, shall be increased by the percentage set forth in the column
     of Schedule D entitled "Tenant Proportionate Share" opposite the floor
     designated by Owner as the Additional Option Space (however, if the
     Additional Option Space constitutes less than an entire floor, Landlord
     shall designate the appropriate percentage in its Availability Notice).

          (v)   Notwithstanding the foregoing subdivision (iv), in the event
     that Owner, in the Availability Notice, shall advise Tenant that Owner
     proposes to employ different and/or additional escalation provisions in
     this Lease applicable only to the Additional Option Space, which different
     and/or additional escalation provisions are then being generally employed
     in other leases in comparable buildings in New York City at the time, such
     different and/or additional escalation provisions shall be incorporated in
     this Lease with respect to the Additional Option Space. In such event, such
     different and/or additional escalation provisions shall be taken into
     consideration when determining fair market annual rental value for such
     space.

     Section 41.06. Tenant agrees to accept each Additional Option Space in the
condition which shall exist on the commencement date of the term applicable
thereto, "as is", and agrees that Owner shall not be required to perform any
work or make any installations, additions, improvements or decorations thereto
in order to prepare such space for Tenant's occupancy except that on or about
the commencement of the term applicable to all or any portion of the Additional
Option Space Owner agrees to make any repairs to such Space required to be made
by Owner pursuant to subdivision (ii) of Section 5.02.

     Section 41.07. A. In the event Owner and Tenant are unable to agree as to
the fair market annual rental value of any Additional Option Space leased by
Tenant pursuant to the provisions of this Article, such fair market annual
rental value shall be determined by arbitration in the same manner as is set
forth in Section 40.05.

     B. Notwithstanding any findings of the arbitrators the annual rental rate
per square foot with respect to each Additional Option Space shall not be less
than the last annual rental rate per square foot required to be paid to Owner by
the previous occupant of such Space or, in the event there shall have been more
than one (1) such occupant, not less than the last average annual rental rate
required to be paid to Owner by such occupants.

     Section 41.08. A. Upon request of Owner or Tenant, the parties from time to
time, shall execute and deliver to the other instruments, in form reasonably
satisfactory to Owner, stating whether or not Tenant has exercised any right to
lease any Additional Option Space pursuant to the provisions of this Article.
<PAGE>

                                       66

     B. Upon the request of Owner or Tenant, the parties from time to time,
shall execute and deliver to the other, instruments, in form reasonably
satisfactory to Owner, setting forth all of the modifications to this Lease
resulting from the exercise of any such options, including, but not limited to,
the increases in the Fixed Rent resulting therefrom and any different and/or
additional escalation provisions, as provided in subdivision (v) of Section
41.05.

     C. Neither the failure of Owner or Tenant to request the execution of any
such instrument nor Owner's or Tenant's failure to execute and deliver such
instrument shall vitiate any of the provisions of this Article.

                                  ARTICLE 42

                                 Parties Bound

     Section 42.01. The terms, covenants and conditions contained in this Lease
shall bind and inure to the benefit of Owner and Tenant and, except as otherwise
provided in this Lease, their respective heirs, distributees, executors,
administrators, successors and assigns. However, the obligations of Owner under
this Lease shall no longer be binding upon Owner named herein after the sale,
assignment or transfer by Owner named herein (or upon any subsequent Owner after
the sale, assignment or transfer by such subsequent Owner) of its interest in
the Building as owner or lessee, and in the event of an such sale, assignment or
transfer, such obligations shall thereafter be binding upon the grantee,
assignee or other transferee of such interest, and any such grantee, assignee or
transferee, by accepting such interest, shall be deemed to have assumed such
obligations. Notwithstanding anything to the contrary contained in the foregoing
sentence, no such sale, assignment or transfer by Broadway 52nd Associates shall
release Broadway 52nd Associates from its obligations to perform Owner's Initial
Construction (as to such obligations set forth in this sentence there shall be
no limitation on its liability). A lease of the entire Building shall be deemed
a transfer within the meaning of the foregoing sentence. Tenant shall look
solely to the estate and interest of Owner, its successors and assigns, in the
Real Property and Building for the collection or satisfaction of any judgement
recovered against Owner based upon the breach by Owner of any of the terms,
conditions or covenants of this Lease on the part of Owner to be performed, with
the exception of any breach of Broadway 52nd Associates' obligation to perform
Owner's Initial Construction, and no other property or assets of Owner shall be
subject to levy, execution or other enforcement procedure for the satisfaction
of Tenant's remedies under or with respect to either this Lease, the
relationship of landlord and tenant hereunder, or Tenant's use and occupancy of
the Demised Premises.

                                  ARTICLE 43

                              Memorandum Of Lease

     Section 43.01. At the request of Tenant, Owner and Tenant shall execute and
deliver to each other a short form or memorandum of this Lease for the purpose
of recording the interest of Tenant in the Demised Premises, said short form or
memorandum of lease to be in form reasonably satisfactory to Owner. In the event
the parties shall execute and deliver such short form or memorandum of lease, it
shall under no circumstances be deemed to modify or change any of the provisions
of this Lease, which provisions shall, in all instances, prevail. Tenant agrees
that following the expiration or sooner termination of this Lease Tenant shall,
at the request of Owner, execute and deliver to Owner an agreement, in
recordable form and in substance reasonably satisfactory to Owner, terminating
such memorandum of lease. In the event Tenant shall fail to execute or deliver
any such agreement within a reasonable time after Owner's request therefor,
Tenant hereby irrevocably constitutes and appoints Owner as Tenant's agent and
attorney-in-fact to execute any such agreement for or on behalf of Tenant.

                                  ARTICLE 44

                          Telecommunications Antenna

     Section 44.01 Tenant shall have the right to install a telecommunications
transmitting and receiving antenna or "dish" on the roof of the Building, the
exact location of which shall be designated by Owner, and cables connecting such
antenna or dish to equipment in the Demised Premises running through conduits,
pipes or shafts in the Building, the exact location of which shall be designated
by Owner. The foregoing installations shall be
<PAGE>

                                       67

made at Tenant's sole cost and expense and in accordance with all the provisions
of this Lease, including, but not limited to, the provisions of Article 3 and
Article 6. All of the foregoing installations shall be subject to all rights of
any mortgagees and ground lessors. Owner shall have no responsibility for the
maintenance and repair of any such installations and Tenant, at Tenant's sole
cost and expense, shall keep all said installations in good condition and make
all necessary repairs and replacements thereto and to the Building occasioned
thereby. Upon the Expiration Date or sooner termination of the Demised Term, or
if required by any applicable governmental authorities or any mortgagee or any
ground lessor. Tenant, at Tenant's sole cost and expense, shall, upon request of
Owner, remove such installations and make all repairs to the Building occasioned
by such removal. If Owner elects, however to have such installations remain in
the Demised Premises, such installations shall remain in the Demised Premises at
no cost and expense to Owner. The foregoing installations shall be subject to
such conditions with respect to such installations and the maintenance thereof
as may reasonably be imposed by Owner. At Owner's election, such installations
shall be made on behalf of Tenant by Owner or a contractor or contractors
designated by Owner in either event, at Tenant's sole cost and expense.

     In Witness Whereof, Owner and Tenant have respectively signed and sealed
this Lease as of the day and year first above written.

                                             BROADWAY 52ND ASSOCIATES

                                             By     /s/ [ILLEGIBLE]^^
                                               ----------------------------
                                                    a general partner

Witness:

/s/ [ILLEGIBLE]^^
---------------------
                                                                      Owner

                                             D'ARCY MASIUS BENTON & BOWLES, INC.

                                             By     /s/ [ILLEGIBLE]^^
                                               ---------------------------------
                                                                         Tenant

Attest:

/s/ [ILLEGIBLE]^^                                               (Corporate Seal)
----------------------
<PAGE>

                                      A-1

                                  SCHEDULE A

                         OWNER'S INITIAL CONSTRUCTION

     I. Owner agrees, at Owner's expense to perform and make the following
Building standard core work and installations in the Demised Premises, as
designated and selected by Owner:

          A.  Supply and erect exterior walls with windows and glass and
     insulation.

          B.  Supply and install venetian blind pockets at all windows.

          C.  Supply and install peripheral fin tube convectors with convector
     enclosures.

          D.  Supply and install gypsum board core wall facing space to be
     tenanted, ready for paint or wall covering.

          E.  Supply and install ceramic tile floors and ceiling high walls in
     core toilet rooms.

          F.  Supply and install gypsum board walls with wall covering finish
     in Women's Powder Rooms and Men's Vestibules of core toilet rooms.

          G.  Supply and install acoustic tile ceilings, with light fixtures in
     core toilet rooms and Women's Powder Rooms and Men's Vestibules thereof.

          H.  Supply and install plumbing waste, water and vent pipes at
     locations on each floor to be designated by Owner.

          I.  Fireproof and frame all columns.

          J.  Supply and install electric power and panel board in electric
     closet on each floor.

          K.  Supply and install air-conditioning unit on each floor where
     designated by Owner.

          L.  Supply and install sprinkler riser on each floor where designated
     by Owner.

          M.  Supply and install janitor closet and telephone closet on each
     floor where designated by Owner.

          N.  Supply and install empty sleeves, to be located in core telephone
     closets, for tenant communication and or data processing systems.

     II. A.  Owner shall complete the construction of the Building substantially
in accordance with plans and outline specifications prepared by Owner a schedule
of which is set forth on Schedule E, and the actual specifications which shall
be substantially in accordance with such outline specifications (the "Building
Plans and Specifications"). Owner may make such changes to the Building Plans
and Specifications, as Owner, in its sole discretion, deems desirable, provided
that as to any such change which (i) materially and adversely affects the
Demised Premises or the performance specifications of the Building systems
serving the Demised Premises, (ii) increases or decreases the rentable square
feet of the Demised Premises by more than five (5%) percent, (iii) reduces the
generally available height for hung ceilings in any floor of the Demised
Premises below eight feet four inches (8'4"), (iv) substantially alters the
Building core (including the location of the fan rooms) or column space, such
changes shall be subject to the approval of Tenant, which approval shall not be
unreasonably withheld or delayed. Owner may, however, substitute any materials
or equipment for those required by the Building Plans and Specifications. Upon
reasonable notice to Owner, Tenant shall have access to the Building during the
course of construction to observe the progress of such work, which access shall
be subject to such reasonable conditions as Owner may impose.

     B.  (1) In those cases where Tenant's approval for any changes from the
Building Plans and Specifications is required as provided in subparagraph II A,
Owner shall, from time to time, deliver to Tenant notice of any such changes.

         (2) Unless Tenant shall notify Owner of Tenant's disapproval of a
change from the Building Plans and Specifications for which Tenant's approval
is required within fifteen (15) days after notice to Tenant of any such
changes, Tenant shall be deemed to approve such change.
<PAGE>

                                      A-2

     (3)  Owner agrees throughout construction of the Building to keep Tenant
advised of the progress of such construction by (i) including Tenant on a
distribution list for periodic progress bulletins and (ii) meeting with Tenant
and its representatives at reasonable intervals.

     (4)  Upon completion of the Building Plans and Specifications, as well as
any changes thereto, Owner shall promptly deliver three (3) complete sets
thereof (which shall be in one-eighth (1/8") inch scale) to Tenant. For Tenant's
information only, Owner shall attempt to make available to Tenant, at Owner's
Office where practicable, samples of materials to be used in connection with
finish work to be incorporated into the Building (including the Building skin
and lobby treatment).

  III. A. Tenant shall submit to Owner a complete set of detailed architectural
plans and specifications of the work and installations which Tenant desires
Owner to perform and make on each floor of the Demised Premises (including but
not limited to, any Initial Option Space which may be added to the Demised
Premises) in accordance with the following schedule (each such set of plans and
specifications is referred to as a "Tenant's Plan") substantially in the same
order as the sequence for completion of Occupancy Units as provided in Section
1.04:

          (1)  On or prior to July 1, 1988 Tenant shall submit to Owner a
  Tenant's Plan affecting not less than twenty-five (25%) percent of the Demised
  Premises.

          (2)  On or prior to July 11, 1988, Tenant shall submit to Owner a
  Tenant's Plan affecting the next twenty-five (25%) percent of the Demised
  Premises.

          (3)  On or prior to July 20, 1988, Tenant shall submit to Owner a
  Tenant's Plan affecting the next twenty-five (25%) percent of the Demised
  Premises.

          (4)  On or prior to August 1, 1988, Tenant shall submit to Owner a
  Tenant's Plan affecting the next twenty-five (25%) percent of the Demised
  Premises.

          (5)  Notwithstanding the foregoing subdivisions (1) through (4),
  Tenant shall have the right to submit a Tenant's Plan with respect only to
  painting and other wall covering (other than any cabinet work) selections for
  the entire Demised Premises on or prior to September 1, 1988.

  B. Each Tenant's Plan shall contain, but shall not be limited to, all
designations and selections required to be made by Tenant, as well as the heat
factor, if any, of all equipment intended to be used in, and the human load
factor proposed for, each room or other area. Tenant's Plan shall designate,
subject to compliance with all laws, orders and regulations of all governmental
authorities having jurisdiction, the location of sprinkler heads and associated
piping. Tenant's Plan shall not designate any work, materials or installations
which (i) require the use of contractors of a type other than those normally
engaged by Owner in the construction of the Building, (ii) is not practical and
consistent with the physical conditions in the Building and with the plans for
the Building to be filed with the Department of Buildings of the City of New
York, (iii) will impair Owner's ability to perform any of Owner's obligations
under the provisions of this Lease, (iv) will affect any portions of the
Building other than the Demised Premises or (v) does not comply with the
provisions of Section 29.04. Tenant's Plan shall not designate and area which
shall have an electrical load in excess of 4 watts per square foot of usable
area for all purposes (including lighting and power) or which shall have a human
occupancy factor in excess of one (1) person per one hundred (100) square feet
of usable area (the average electrical load and human occupancy factors for
which the HVAC systems have been designed): Tenant acknowledges that it has been
advised that the HVAC systems serving the Building and the Demised Premises will
be designed, in accordance with the provisions of the New York State Energy
Conservation Construction Code, to maintain temperatures in the Demised Premises
as specified below, provided that (i) outside temperature is not less than
l5(degrees)F and not more than 89(degrees)F and (ii) the sources of heat in any
room or other area do not exceed (x) one (1) person for each one hundred (100)
square feet of usable area, (y) an electrical load of two (2) watts per square
foot of usable area for lighting fixtures, and (z) an electrical load of two (2)
watts per square foot of usable area for all other purposes:
<PAGE>

                                      A-3

               Outside Conditions                      Inside Conditions
               ------------------                      -----------------
Heating......  15'F or higher                      average space temperature
                                                       72'F Dry Bulb
                                                     (no humidity control)
Cooling......  89'F or lower                       average space temperature
                                                       78'F Dry Bulb
                                      (at 50% relative humidity; 65, F wet bulb)

     C.  Tenant agrees that Tenant's Plan shall be certified by a registered
architect duly licensed in the State of New York so that such Plan may be filed
with the Department of Buildings of the City of New York (the "Buildings
Department"). All engineering drawings and specifications in connection with
Tenant's Plan shall be prepared by a licensed professional engineer selected by
Owner, at Tenant's cost and expense, including, without limitation, any
engineering drawings and specifications required for computer rooms, auditorium
or similar special uses of Tenant.

     D.  Owner agrees to supply and install in the Demised Premises all of the
items set forth on Tenant's Plan. In consideration of the performance of such
work by Owner, Tenant shall pay to Owner a sum equal to the aggregate of: (i)
the amount, if any, by which (a) the actual cost and expense to Owner (referred
to as the "Construction Cost") of supplying and installing all of the items set
forth on Tenant's Plan (including, but not limited to, the cost to Owner of a
field superintendent, operating engineer, laborers, rubbish removal and
preparation of engineering drawings and specifications but excluding the cost of
insurance and watchman services) shall exceed (b) the sum of ELEVEN MILLION SIX
HUNDRED EIGHTY TWO THOUSAND NINE HUNDRED THIRTY ($11,682,930) DOLLARS, plus (ii)
ten (10%) percent of the amount (referred to as the "Resulting Sum") by which
the Construction Cost exceeds the sum of SIX MILLION SIX HUNDRED SEVENTY FIVE
THOUSAND NINE HUNDRED SIXTY ($6,675,960) DOLLARS, for office overhead; plus
(iii) an additional Ten (10%) percent of the Resulting Sum as a construction
management fee. If the sum of ELEVEN MILLION SIX HUNDRED EIGHTY TWO THOUSAND
NINE HUNDRED THIRTY ($11,682,930) DOLLARS shall be in excess of the Construction
Cost. Tenant shall not be entitled to any such excess but Tenant shall continue
to remain liable for the sums computed under subdivisions (ii) and (iii) of this
paragraph D. Any such sums due Owner shall be payable by Tenant to Owner, from
time to time, whether or not the Demised Term shall have commenced, within ten
(10) days next following the rendition of a statement therefor by Owner to
Tenant in the following manner: with respect to each floor of the Demised
Premises Owner shall first exhaust a sum equal to (x) $35.00, or, solely with
respect to the Basement Level A portion of the Demised Premises, $17.50,
multiplied by (y) the number of rentable square feet contained in such floor of
the Demised Premises or such portion of Basement Level A, as the case may be, as
set forth in Section 1.03.A (ii) and on Schedule G, and thereafter, subject to
any credit to which Tenant may be entitled by reason of the fact that the cost
of the work and installations on any other floor is less than sum determined in
the manner hereinbefore provided. Tenant shall pay any excess to Owner within
such ten (10) day period as hereinabove set forth in this sentence. Owner agrees
not to render such statements more frequently than monthly. In addition, Owner
shall furnish to Tenant a monthly statement, in sufficient detail, in Owner's
reasonable opinion, of all contributions made by Owner toward the Construction
Cost including the unit prices of any such work. Owner agrees that in computing
any cost and expense to Owner of supplying and installing the items on Tenant's
Plan. Owner shall employ the unit prices which Owner shall have received in
connection with the construction of the Building. Owner agrees that with respect
to millwork and special cabinet work only. Owner shall invite bids from at least
three (3) subcontractors (selected in consultation with Tenant) and that Tenant
shall have the right, subject to Owner's approval, not to be unreasonably
withheld or delayed, to select the subcontractor to perform such cabinet work.
As soon as any prices for any items set forth on Tenant's Plan for which Owner
has not received unit prices (with the exception of such special cabinet work
and millwork) have been negotiated, Owner shall notify Tenant thereof. Tenant
shall have a period of three (3) business days after such notification by Owner
to review such prices, and if after such review Tenant is dissatisfied with any
particular price or prices, Owner will attempt in good faith, to negotiate a
lower price or prices with the applicable contractors. Notwithstanding anything
to the contrary set forth in the immediately preceding sentence, however, the
cost and expense to Owner of supplying and installing such items shall be
computed on the basis of the prices which Owner is able to obtain in conformity
with the foregoing, notwithstanding Owner's failure to obtain a lower price or
prices with respect to any such items. Provided Tenant's Plan has been certified
by a registered architect licensed to do business in the State of New York and
<PAGE>

                                      A-4

shall have received Owner's approval, Owner shall file Tenant's Plan with the
Buildings Department and take whatever action may be reasonably necessary to
obtain all necessary approvals and permits from such Department for the work set
forth on Tenant's Plan provided, however, Tenant shall cause its architect to
prepare all papers necessary to be filed by Tenant, including without
limitation, the execution by Tenant's architect of the Building Department
application. The fees paid by Owner for any such filing shall be included within
the Construction Cost. If required by the Buildings Department or, if Owner, at
its election, shall decide to do so, Owner shall file separately for each floor
of the Demised Premises. If the Buildings Department shall reject any part of
Tenant's Plan, Tenant shall, at its sole cost and expense, cause its registered
architect or licensed professional engineer to make any changes in such plan
which may be required to obtain the Building Department approval. If the
Buildings Department shall reject any of the revisions to the Building Plans and
Specifications, Owner shall, at its sole cost and expense, cause its registered
architect or licensed professional engineer to make any changes in the Building
Plans and Specification which may be required to obtain such approval, unless
and to the extent such changes are required because of changes in Tenant's Plan,
in which event such changes shall be made at tenant's sole cost and expense. The
Plans and Specifications for the Building provide for panel boxes and
transformers on each floor of the Building capable of providing 4 watts per
usable square foot of electrical energy. Owner has agreed, subject to any laws,
orders, rules and/or regulations of any applicable governmental authorities,
including but not limited to the New York State Energy Conservation Construction
Code, to provide 6 watts of electrical energy per rentable square foot connected
load, of which 4 watts shall be for power and 2 watts shall be for lighting.
Tenant shall pay 50%, but not more than Four Thousand ($4,000) Dollars per
floor, of the additional cost required to upgrade the panel boxes and
transformers on each floor to provide the additional electrical energy referred
to and payment therefor shall be made by Tenant in accordance with the
provisions of this Schedule A.

     E.  Tenant's Plan shall be subject to Owner's approval, which Owner agrees
not unreasonably to withhold. Owner's approval of Tenant's Plan shall not,
unless expressly set forth in such approval, be deemed to authorize Tenant to
make any Alterations in or about the Demised Premises.

     F.  In the event (i) tenant, on or prior to any of the respective dates set
forth in subparagraph III, A(1) through (4), both inclusive, shall fail to
submit to Owner that portion of Tenant's Plan required to be submitted by such
date which shall have met with Owner's approval, or (ii) substantial completion
of Owner's Initial Construction shall be delayed by reason of Tenant's delays in
submitting any other plans or specifications, or in supplying information, or in
approving plans or specifications or estimates, or in giving authorizations or
by reason of any other similar acts or omissions of Tenant, then, and in any
such event, Tenant agrees to pay to Owner, as agreed liquidated damages for
Tenant's failures aforesaid, or for such delays occasioned by Tenant's acts or
omissions, as the case may be, sums equal to one (1) day's rent, for each day
that such failure or delays shall continue provided, however, Owner shall not be
entitled to any such liquidated damages for such Tenant's failures or delays in
the event that Owner's Initial Construction shall be completed on or prior to
May 1, 1989. Tenant shall also pay to Owner a sum equal to any additional cost
to Owner in completing Owner's Initial Construction resulting from any of the
foregoing failures, acts, or omissions of Tenant. Any such sums may be collected
by Owner, from time to time, upon demand, whether or not the Demised Term shall
have commenced.

     IV. The work and installations required to be performed and made by Owner
pursuant to the provisions of this Schedule shall be equal to standards adopted
by Owner for the Building. Owner's Initial Construction shall constitute a
single non-recurring obligation on the part of Owner. In the event this Lease is
renewed or extended for a further term by agreement or operation of law, Owner's
obligation to perform Owner's Initial Construction shall not apply to any such
renewal or extension.

     V.  Owner's Initial Construction shall be substantially completed prior to
the Commencement Date. At any time after such substantial completion, Owner may
enter the Demised Premises to complete unfinished details of Owner's Initial
Construction, and entry by Owner, its agents, servants, employees or contractors
for such purpose shall not constitute an actual or constructive eviction, in
whole or in part, or entitle Tenant to any abatement or diminution of rent or
relieve Tenant from any of its obligations under this Lease, or impose any
liability upon Owner or its agents by reason of inconvenience or annoyance to
Tenant, or injury to or interruption of Tenant's business, or otherwise. The
completion of such unfinished details by Owner shall be made with reasonable
diligence and in a manner designed to minimize interference with Tenant's normal
business operations (however, Owner shall have no obligations to employ
contractors or labor at overtime or other premium pay rates).
<PAGE>

     VI.   Notwithstanding the foregoing provisions of this Schedule A, Owner
 and Tenant agree that Tenant's contractor shall perform the installation of
 Tenant's telephone and audio visual equipment. Owner shall afford access to the
 Demised Premises to Tenant's contractors, approved by Owner pursuant to the
 provisions of Article 3, at such times during the course of the work of Owner's
 Initial Construction as Owner shall reasonably determine to enable Tenant, at
 the sole risk of Tenant, to supply and install such telephone and audio visual
 equipment, provided that the same is performed in conformity with and subject
 to the provisions of Article 3. Such access shall include access to the
 construction hoists on the same terms and conditions afforded to Owner's
 contractors. Tenant shall cause its contractors to cooperate with Owner and
 Owner's contractors so that Owner's Initial Construction and any construction
 by Owner in the Building may be completed efficiently and economically. Tenant
 and Tenant's contractors will employ men and means to insure completion of any
 such Alterations by Tenant without interference with Owner's Initial
 Construction or any construction by Owner in the Building by reason of
 strikes, work stoppages or similar causes. In the event the making of any such
 Alterations by Tenant shall interfere with Owner's Initial Construction or any
 construction by Owner in the Building, Tenant, upon demand of Owner, shall
 cause its contractors and mechanics to leave the Demised Premises and the
 Building until such time as Owner, in Owner's reasonable judgment, shall
 determine that their re-entry upon the Demised Premises will not so interfere.
 The performance of such work by Tenant's contractors shall not, in and of
 itself, be deemed occupancy by Tenant of all or any part of the Demised
 Premises for the conduct of its business.

     VII.  Notwithstanding that Owner shall be performing all of the work set
forth on Tenant's Plan (except for the telephone installation referred to in
paragraph VI) if any Alterations shall be made or performed by or on
behalf of Tenant in the Demised Premises prior to the Commencement Date, Tenant
shall pay to Owner a sum equal to ten (10%) of the aggregate cost and expense to
Tenant of the installation of such Alterations (as opposed to the cost of the
equipment) as agreed reimbursement to Owner for overhead and for supervising and
coordinating the work. Any such sums shall be payable by Tenant to Owner,
whether or not the Demised Term shall have commenced, within five (5) days next
following the rendition of a statement therefor by Owner to Tenant. To assist
Owner in determining the sums so due, Tenant agrees, upon Owner's request, to
furnish Owner with copies of all contracts, statements, invoices and other
information relating to such Alterations.

     VIII. At the time that Owner shall notify Tenant of the approval of
 Tenant's Plan, such notice of approval shall state which items contained in
 Tenant's Plan, if any, will be subject to certain delays in delivery. Tenant
 may, within five (5) days after such notice from Owner, designate, subject to
 the limitations (i) through (v) set forth in subparagraph (B) of Paragraph III,
 other available items which will not be subject to delays in delivery. If
 Tenant fails to timely make such designations, Owner will have no obligation to
 supply or install the items set forth in such Owner's notice or, at Owner's
 election, Owner shall have the right to perform such items and for the purpose
 of determining whether or not Owner's Initial Construction shall have been
 substantially completed, said items set forth in such notice shall be deemed
 minor details of Owner's Initial Construction which may be performed by Owner
 after the substantial completion of, Owner's Initial Construction in accordance
 with the provisions of paragraph V of this Schedule and, accordingly, shall not
 affect the Commencement Date.
<PAGE>

                                      B-1

                                  SCHEDULE B

                                Building Rules

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

     2.   No awnings or other projections shall be attached to the outside walls
or windows of the Building without the prior consent of Landlord. Subject to the
provisions of Article 3, no curtains, blinds, shades, or screens which are
visible from outside the Demised Premises shall be attached to or hung in, or
used in connection with, any windows or door of the premises demised to any
tenant or occupant, without the prior consent of Landlord. Such awnings,
projections, curtains, blinds, shades, screens or other fixtures must be of a
quality, type, design and color, and attached in a manner, approved by landlord.

     3.   Subject to the provisions of Article 3, no sign, advertisement,
object, notice or other lettering shall be exhibited, inscribed, painted or
affixed on any part of the outside or inside of the premises demised to any
tenant or occupant or of the Building without the prior consent of Landlord,
which consent shall not be unreasonably withheld. Interior signs on doors and
directory tables, if any, shall be of a size, color and style approved by
Landlord, which approval shall not be unreasonably withheld.

     4.   The sashes, sash doors, skylights, windows, 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, nor shall any bottles, parcels, or
other articles be placed on any window sills.

     5.   No show cases or other articles shall be put in front of or affixed to
any part of the exterior ofthe Building, nor placed in the halls, corridors,
vestibules or other public parts of the Building.

     6.   The water and wash closets and other plumbing fixtures shall not be
used for any purposes other than for which they were constructed, and no
sweepings, rubbish, rags, or other substances shall be thrown therein. No tenant
shall bring or keep, or permit to be brought or kept, any inflammable,
combustible or explosive fluid, material, chemicals or substance in or about the
premises demised to such tenant (provided, however, Tenant shall have the right
to keep inflammable fluids, materials, chemicals or substances provided the same
is in compliance with the provisions of Article 6).

     7.   Subject to the provisions of Article 3, no tenant or occupant shall
mark, paint, drill into, or in any way deface any part of the Building or the
premises demised to such tenant or occupant. Subject to the provisions of
Article 3. no boring, cutting or stringing of wires shall be permitted, except
with the prior consent of Landlord, and as Landlord may reasonably direct. No
tenant or occupant shall install any resilient tile or similar floor covering in
the premises demised to such tenant or occupant except in a manner approved by
Landlord, which approval shall not be unreasonably withheld.

     8.   No bicycles, vehicles or animals of any kind shall be brought into or
kept in or about the premises demised to any tenant. Subject to the provisions
of Article 2, no cooking shall be done or permitted in the Building by any
tenant without the approval of Landlord. No tenant shall cause or permit any
unusual or objectionable odors to emanate from the premises demised to such
tenant.

     9.   No space in the Building shall be used for manufacturing, for the
storage of merchandise (other than incidental storage of samples of Tenant's
clients), or for the sale of merchandise, goods or property of any kind at
auction.

     10.  No tenant shall make, or permit to be made, any unseemly or disturbing
noises or disturb or interfere with other tenants or occupants of the Building
or neighboring buildings or premises whether by the use of any musical
instrument, radio, television set or other audio device, unmusical noise,
whistling, singing, or in any other way. Nothing shall be thrown out of any
doors or windows.

     11.  No additional locks or bolts of any kind shall be placed upon any of
the doors or windows, nor shall any changes be made in 1ocks or the mechanism
thereof unless Tenant shall furnish Landlord with a key or other device
necessary to open such locks, bolts or mechanisms. Each tenant must, upon the
termination of its tenancy,
<PAGE>

                                      B-2

restore to Landlord and keep all stores, offices and toilet rooms, either
furnished to or otherwise produced by such tenant.

     12.  All removals from the Building, of the carrying in or out of the
Building or the premises demised to any tenant, of any safes, freight, furniture
or bulky matter of any description must take place at such time and in such
manner as Landlord or its agents may reasonably determine, from time to time.
Landlord reserves the right to inspect all freight to be brought into the
Building and to exclude from the Building all freight which violates any of the
Building Rules or the provisions of such tenant's lease.

     13.  Subject to the provisions of Article 2 no tenant shall use or occupy,
or permit any portion of the premises demised to such tenant to be used or
occupied, as an office for a public stenographer or typist, or as a barber or
manicure shop, or as an employment bureau. No tenant or occupant shall engage or
pay any employees in the Building, except those actually working for such tenant
or occupant in the Building, nor advertise for laborers, giving an address at
the Building.

     14.  No tenant or occupant shall purchase spring water, ice, food,
beverage, lighting maintenance, cleaning, towels, or other like service, from
any company or persons not approved by Landlord, such approval not unreasonably
to be withheld.

     15.  Landlord shall have the right to prohibit any advertising by any
tenant or occupant which, in Landlord's reasonable opinion, tends to impair the
reputation of the Building or its desirability for offices, and upon notice from
Landlord, such tenant or occupant shall refrain from or discontinue such
advertising.

     16.  Landlord reserves the right to exclude from the Building, between the
hours of 6 P.M. and 8 A.M. on business days and at all hours on Saturdays,
Sundays and holidays, all persons who do not present a pass to the Building
signed by Landlord. Landlord will furnish passes to persons for whom any tenant
requests such passes. Each tenant shall be responsible for all persons for whom
it requests such passes and shall be liable to Landlord for all acts of such
persons.

     17.  Each tenant, before closing and leaving the premises demised to such
tenant at any time, shall see that all entrance doors are locked and all windows
closed.

     18.  Earn tenant shall, at its expense, provide artificial light in the
premises demised to such tenant for Landlord's agents, contractors and employees
while performing janitorial or other cleaning services and making repairs or
alterations in said premises.

     19.  No premises shall be used, or permitted to 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 Landlord. Building employees shall not be required to perform,
and shall not be requested by any tenant or occupant to perform, any work
outside of their regular duties, unless under special instructions from the
office of Landlord.

     21.  Canvassing, soliciting and peddling in the Building are prohibited and
each tenant and occupant shall cooperate tn seeking their prevention.

     22.  There shall not be used in the Building, either by any tenant or
occupant or by their agent or contractors, in the delivery or receipt of
merchandise, freight or other matter, any hand trucks or other means of
conveyance except those equipped with rubber tires, rubber side guards and such
other safeguards as Landlord may require.

     23.  If the premises demised to any tenant become infested with vermin,
such tenant, at its sole cost and expense, shall cause its premises to be
exterminated, from time to time, to the reasonable satisfaction of Landlord, and
shall employ such exterminators thereof as shall be approved by Landlord, which
approval shall not be unreasonably withheld

     24.  No premises shall be used, or permitted to be used, at any time, as a
store for the sale or display of goods, wares or merchandise of any kind, or as
a restaurant, shop, booth, bootblack or other stand, or for the conduct of any
business or occupation which predominantly involves direct patronage of the
general public in the premises demised to such tenant, or for manufacturing or
for other similar purposes.
<PAGE>

                                      B-3

     25.  No tenant shall clean, or permit to be cleaned, any window of the
Building from the outside in violation of Section 202 of the New York Labor Law
or any successor law or statute, or of the rules of the Board of Standards and
Appeals or of any other board or body having or asserting jurisdiction.

     26.  No tenant shall move, or permit to be moved, into or out of the
Building or the premises demised to such tenant, any heavy or bulky matter,
without the specific approval of Landlord which approval shall not be
unreasonably withheld. If any such matter requires special handling, only a
person holding a Master Rigger's license shall be employed to perform such
special handling. No tenant shall place, or permit to be placed, on any part of
the floor or floors of the premises demised to such tenant, a load exceeding the
floor load per square foot which such floor was designed to carry and which is
allowed by law. Landlord reserves the right to prescribe the weight and position
of safes and other heavy matter, which must be placed so as to distribute the
weight.
<PAGE>

                                      C-1

                                   SCHEDULE C

                       Cleaning Services To be Furnished
                      By Owner Pursuant To The Provisions
                                of Section 29.03

     A.   General Cleaning of Demised Premises: (unless otherwise indicated,
General Cleaning Services are to be performed nightly).

          1.   Damp mop all flooring; exclusive of carpeted areas.

          2.   Vacuum all carpeted areas and rugs; moving light furniture other
     than desks, file cabinets, etc.

           3.  Sweep any private stairways or vacuum if carpeted; spot wash as
     necessary.

           4.  Empty and wipe clean all wastepaper baskets, ash trays,
     receptacles, etc., and damp dust as necessary.

           5.  Remove waste paper and waste materials to a designated area or
     areas.

           6.  Dust and wipe clean all furniture, fixtures and telephones within
     hand-high reach, and window sills.

           7.  Damp wipe all glass furniture tops.

           8.  Dust all baseboards; spot clean and remove stains if possible.

           9.  Keep locker and slop sink rooms, if any, in clean and orderly
     condition.

          10.  Dust all chair rails, trim, etc.

          11.  Wash clean all water fountains and coolers.

          12.  Spot clean finger prints-door knobs, door jambs, elevator call
     buttons, etc.

     B.   Lavatories-Nightly:

           1.  Sweep and wash all flooring.

           2.  Wash and polish all mirrors, powder shelves, bright work, etc.,
     including flushometers, piping and toilet seat hinges.

           3.  Wash both sides of all toilet seats with disinfectant cleaner.

           4.  Wipe clean all toilet tissue, soap, towel, and sanitary napkin
     dispensers and disposal units.

           5.  Wash all basins, bowls and urinals, and disinfect.

           6.  Empty, clean and disinfect paper towel and sanitary napkin
     disposal receptacles.

           7.  Remove waste paper and refuse to a designated area or areas.

           8.  Fill toilet tissue holders, soap dispensers, towel dispensers and
     sanitary napkin dispensers (toilet tissue to be furnished by Owner or its
     contractor, other materials to be contracted by tenants).

           9.  Damp wipe all partitions, tile walls, enamel surfaces, dispensers
     and receptacles, using proper disinfectant.

     C.   Building Entrance Lobbies-Nightly:

           1.  Sweep and wash flooring.

           2.  Wash revolving door mats.

           3.  Clean all cigarette urns and replace sand as necessary (sand to
     be furnished by Owner's contractor).

           4.  Clean floors in elevator cabs, or vacuum clean if carpeted.

           5.  Dust and rub down walls, metal work and saddles in elevator
     cabs.

           6.  Dust and rub down all elevator doors, saddles, mail depository
     and lobby directories.
<PAGE>

                                      C-2

           7.  Dust and rub down all other ornamental metal doors (closets,
stairs, service elevator corridors, etc.).

      D.   High Dusting-Office Areas in Demised Premises (to be performed
approximately every three months):

           1.  Dust all pictures, frames, charts, graphs and similar wall
hangings not reached in nightly cleaning.

           2.  Dust all vertical surfaces such as walls, partitions, ventilating
louvres, fresh air grilles and others not reached in nightly cleaning,
approximately every three months.

           3.  Dust exterior of all lighting fixtures.

           4.  Dust all overhead pipes, sprinklers, etc.

           5.  Damp wipe all venetian blinds.

           6.  Dust all window frames.

      E.   Periodic Cleaning-Office Areas in Demised Premises (unless otherwise
indicated):

           1.  Elevator, stairway, office and utility doors to be checked for
general cleanliness as necessary, removing fingermarks.

           2.  Dust all door louvres and other ventilating louvres within hand-
high reach weekly.

           3.  On multiple tenancy floors only: wash all stone, ceramic tile,
marble and terrazzo flooring in elevator foyers and corridors weekly and wash
and/or wax all resilient flooring in elevator foyers and corridors weekly.

           4.  On multiple tenancy floors wash all elevator, stairway, office
and utility doors as necessary, using approved cleanser.

           5.  On multiple tenancy floors, dust and clean electric fixtures and
any other fittings in public corridors as necessary; wash such fixtures,
including lenses and lamps, once every year.

           6.  Wipe clean all interior metal, as necessary.

           7.  Remove all fingermarks, smudges and other marks from metal
partitions and other surfaces, as necessary.

      F.   Lavatories in the Demised Premises-Periodic Cleaning:

           1.  Machine scrub flooring as necessary, but not less than once a
month.

           2.  Wash all partitions, tile walls, granite shelves, ceilings and
enamel surfaces once a month, using proper disinfectant when necessary.

           3.  Dust all lighting fixtures (exterior and interior) once a month:
wash such fixtures, including lenses and lamps, once every year.

           4.  Do all high dusting once a month.

      G.   Entrance Lobby:

           1.  Machine scrub flooring as necessary including, but not limited
to, stone floors.

           2.  Dust lights, globes, illuminated signs and fixtures (exterior and
interior) as often as necessary; wash such lights, globes, illuminated signs and
fixtures, including lenses and lamps, twice a year.

           3.  Dust down walls once a month.

           4.  Wash walls once a month and polish or clean once a year including
but not limited to stone walls.

           5.  Rub down metal and other high level bright work daily.

           6.  Wash and clean ceilings in elevator cabs.

           7.  Wash or polish, as required, exterior metal pan ceilings at least
twice a year.

           8.  Dust exterior metal pan ceilings.
<PAGE>

                                      C-3

           9.  Clean and maintain lobby as necessary.

      H.   Day Services-Duties of Day Porters (to be performed daily):

           1.  Police entire elevator lobby areas of Building.

           2.  Police elevator cabs.

           3.  Police men's toilet rooms, including private executive toilet
rooms.

           4.  Set out mats in elevator lobby areas of Building on rainy days;
keep mats in clean condition.

           5.  Fill toilet tissue, soap and towel dispensers (toilet tissue to
be furnished by Owner, other materials to be contracted by Tenant).

           6.  Police employees' locker rooms so that they are kept in clean
condition at all times.

           7.  Sweep and hose sidewalks, weather permitting; remove snow when
necessary.

           8.  Keep frames of entrance reception doors of Building in clean
condition.

           9.  Sweep and dust all Building stairways and fire towers; dust all
handrails, newels and stair stringers.

          10.  Exterior metal work and granite of Building entrances to be kept
in clean condition at all times.

          11.  Clean all cigarette urns in elevator lobbies only.

      I.   Day Services-Duties of Day Matron (to be performed daily):

           1.  Police ladies' rest rooms and toilet rooms, keeping them in
clean condition.

           2.  Fill toilet tissue dispensers, soap dispensers and towel
dispensers (toilet tissue to be furnished by Owner; other materials to be
contracted by tenants).

           3.  Fill sanitary napkin dispensers (product to be furnished by
Owner or contractor).

           4.  Collect coins from sanitary napkin dispensers and turn proceeds
over to Owner's duly authorized representative.

      J.   Window, Glass and Exterior Cleaning:

           1.  Clean all windows inside and outside, every six weeks subject to
delays occasioned by inclement weather; wipe drip marks from exterior and
interior metal after cleaning windows.

           2.  Clean all interior glass every six weeks.

           3.  Clean Building entrance doors once each day.

           4.  Clean Building entrance lobby glass and mirrors weekly.

           5.  Wash exterior spandrels, column covers, louvres and other
portions of exterior walls as and when directed by Owner.

           6.  Wash and clean columns to second floor as and when necessary and
as directed by Owner.

      K.   All services required to be furnished "nightly" shall be furnished
only during regular cleaning hours for the Building (generally between 6:00 P.M.
and 6:00 A.M.) on Mondays through Fridays only, exclusive of holidays as defined
in Article 29. All services required to be furnished "daily" shall be furnished
only during the hours between 8:00 A.M. and 6:00 P.M. on Mondays through Fridays
only, exclusive of holidays as defined in Article 29.

      L.   Tenant agrees that Owner may substitute, for any of the methods or
devices set forth in this Schedule C, other methods or devices which will
achieve substantially the same results.
<PAGE>

                                  SCHEDULE D

<TABLE>
<CAPTION>
                                                                                       Tenant's
                                                              Number of Rentable    Proportionate
                          Floor                                  Square Feet            Share
---------------------------------------------------------     ------------------   ----------------
<S>                                                          <C>                  <C>
Entire Sixteenth (16th)..................................          24,033         Three and 18/100
                                                                                  (3.l8%) percent
Entire Seventeenth (17th)................................          23,783         Three and 15/100
                                                                                  (3.15%) percent
Entire Eighteenth (l8th).................................          23,776         Three and 5/100
                                                                                  (3.15%) percent
Entire Nineteenth (19th).................................          23,810         Three and 15/100
                                                                                  (3.15%) percent
Entire Twentieth (20th)..................................          23,138         Three and 06/100
                                                                                  (3.06%) percent
Entire Twenty-First(21st)................................          21,268         Two and 82/100
                                                                                  (2.82%) percent
Entire Twenty-Second (22nd)..............................          21,268         Two and 82/100
                                                                                  (2.82%) percent
Entire Twenty-Third (23rd)...............................          21,268         Two and 82/100
                                                                                  (2.82%) percent
Entire Twenty-Fourth (24th)..............................          21,268         Two and 82/l00
                                                                                  (2.82%) percent
Entire Twenty-Fifth (25th)...............................          21,268         Two and 82/l00
                                                                                  (2.82%) percent
Entire Twenty-Sixth (26th)...............................          21,268         Two and 82/100
                                                                                  (2.82%) percent
Entire Twenty-Seventh (27th).............................          2l,018         Two and 84/100
                                                                                  (2.84%) percent
Entire Twenty-Eighth (28th)..............................          21,018         Two and 84/100
                                                                                  (2.84%) percent
Entire Twenty-Ninth (29th)...............................          21,018         Two and 84/100
                                                                                  (2.84%) percent
Entire Thirtieth (30th)..................................          20,643         Two and 78/l00
                                                                                  (2.78%) percent
Entire Thirty-First (31st)...............................          20,643         Two and 78/l00
                                                                                  (2.78%) percent
Entire Thirty-Second (32nd)..............................          16,759         Two and 22/100
                                                                                  (2.22%) percent
Entire Thirty-Third (33rd)...............................          16,019         Two and 12/100
                                                                                  (2.12%) percent
Entire Thirty-Fourth (34th)..............................          16,019         Two and 12/100
                                                                                  (2.12%) percent
Entire Thirty-Fifth (35th)...............................          16,019         Two and 12/100
                                                                                  (2.12%) percent
</TABLE>
<PAGE>

                                  SCHEDULE E

                 Schedule of Plans and Outline Specifications

A. Plans of Fox & Fowle Architects, P.C., as follows:

                                                                  Last
         Drawing No.                 Title                    Revised Date
       --------------         ---------------------          --------------
            A-8               1st Cellar Plan;
                              1st Cellar Core Plan             Aug. 24, 1987
            A-9               Lobby Level Plan                 Aug. 24, 1987
            A-11              Mezzanine Floor Plan             Aug. 10, 1987
            A-13              Floors 2-6 Plans                 July 15, 1987
            A-14              7th Floor Plan                   July 15, 1987
            A-15              8th Floor Plan                   July 15, 1987
            A-16              Floors 9-10 Plans                Aug. 10, 1987
            A-17              Floors 11-20 Plans               June 26, 1987
            A-20              Floors 21-31 Plans               Aug. 10, 1987
            A-21              Floors 32-35 Plans               Aug. 10, 1987
            A-23              Main Roof &
                              Partial Plans                    Aug. 25, 1987
            A-7               2nd Cellar Plan;
                              Partial Core Plans               Sept. 9, 1987
            A-6               3rd Cellar Plan;
                              Partial Core Plans               Aug. 10, 1987

B.   Outline Specifications entitled "Section 1A, Outline Specifications,
     Specification, 1675 Broadway, New York, New York" dated 12 February 1987
     containing pages 1A-1 through 1 A-7.
<PAGE>

                                   SCHEDULE F

              Land Demised in Ground and Development Rights Lease

     PARCEL A

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

     Beginning at the corner formed by the intersection of the westerly line of
Broadway with the northerly line of West 52nd Street; running thence westerly,
along the northerly line of West 52nd Street, 201 feet 3 inches; thence
northerly, at right angles to the preceding course, 100 feet 5 inches to the
center line of the block; thence easterly, parallel with the northerly line of
West 52nd Street and along the center line of block 62 feet 1-1/2 inches; thence
northerly at right angles to the preceding course, 10 feet 7-3/4 inches; thence
easterly at right angles to the preceding course, 76 feet 1 inch; thence
southerly at right angles to the preceding course, 10 feet 7-3/4 inches to the
center line of the block; thence easterly, parallel with the northerly line of
West 52nd Street and along the center line of the block, 52 feet 3 1/4 inches to
the westerly side of Broadway; thence southerly, along the westerly side of
Broadway 100 feet 11-7/8 inches to the point or place of Beginning.

PARCEL B

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

     Beginning at a point in the westerly line of Broadway, distance 75 feet
9-1/4 inches southerly from the corner formed by the intersection of the
southerly line of West 53rd Street with the westerly line of Broadway; running
thence southerly, along the westerly line of Broadway 25 feet 2-5/8 inches;
thence westerly, parallel with the southerly line of West 53rd Street, and along
the center line of block 14 feet 11-3/4 inches; thence northerly, at right
angles to the preceding course, 25 feet 1 inch; thence easterly, parallel with
the southerly line of West 53rd Street, 12 feet 3-3/4 inches to the point or
place of Beginning.
<PAGE>

                                      G-1

                                  SCHEDULE G

                      INITIAL OPTION SPACES (ARTICLE 38)

<TABLE>
<CAPTION>
                                                                      Tenant's              Sums Set Forth in
                                                                  Proportionate Share     Subparagraph III D. of      Rentable
         Floor                Fixed Rent Applicable To Floor      Applicable To Floor          Schedule A            Square Feet
         ----                 ------------------------------      -------------------     ----------------------     -----------
<S>                         <C>                                   <C>                     <C>                        <C>
Thirteenth (13th),          $600,825, for 1st Rent Period;        Three and 18/100        $841,155/$480,660            24,033
Fourteenth (14th),          $720,990, for 2nd Rent Period;        (3.18%) percent
Fifteenth (15th) or         $841,155, for 3rd Rent Period;
Sixteenth (16th)            $913,254, for 4th Rent Period.

Seventeenth (17th)          $594,575, for 1st Rent Period;         Three and 15/100       $832,405/$475,660            23,783
                            $713,490, for the 2nd Rent Period;     (3.15%) percent
                            $832,405, for the 3rd Rent Period;
                            $903,754, for the 4th Rent Period.
</TABLE>

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