Exhibit

10.2




 




LEASE AND LEASE

AGREEMENT




 




 




Between




 




 




SCV Partners




 




The Landlord




 




 




And




 




 




Bio-Technology

General Corp.




 




The Tenant




 




 




For Leased

Premises In




 




 




One Tower Center




East Brunswick,

New Jersey




 




June 11, 2002




 




 




Prepared by:




 




Edward D. Penn, Esq.




Boston Properties




302 Carnegie Center




Princeton, New Jersey 08540




 





























 




TABLE OF CONTENTS




 




	

  1


  	

  Definitions


  
	

  2


  	

  Lease of the Leased

  Premises


  
	

  3


  	

  Rent


  
	

  4


  	

  Term


  
	

  5


  	

  Preparation of

  the Leased Premises


  
	

  6


  	

  Options


  
	

  7


  	

  Use and Occupancy


  
	

  8


  	

  Utilities,

  Services, Maintenance and Repairs


  
	

  9


  	

  Allocation

  of the Expense of Utilities, Services, Maintenance, Repairs and Taxes


  
	

  10

  


  	

  Computation

  and Payment of Allocated Expenses of Utilities, Services, Maintenance,

  Repairs, Taxes and Capital Expenditures


  
	

  11

  


  	

  Leasehold

  Improvements, Fixtures and Trade Fixtures


  
	

  12

  


  	

  Alterations,

  Improvements and Other Modifications by the Tenant


  
	

  13 


  	

  Landlord’s

  Rights of Entry and Access


  
	

  14 


  	

  Liabilities

  and Insurance Obligations


  
	

  15 


  	

  Casualty

  Damage to Building or Leased Premises


  
	

  16 


  	

  Condemnation


  
	

  17 


  	

  Assignment or

  Subletting by Tenant


  
	

  18 


  	

  Signs, Displays and

  Advertising


  
	

  19 


  	

  Quiet Enjoyment


  
	

  20 


  	

  Relocation


  
	

  21

  


  	

  Surrender


  
	

  22 


  	

  Events of Default


  
	

  23 


  	

  Rights and Remedies


  
	

  24 


  	

  Termination of the Term


  
	

  25 


  	

  Mortgage

  and Underlying Lease Priority


  
	

  26 


  	

  Transfer by Landlord


  
	

  27 


  	

  Indemnification


  
	

  28 


  	

  Parties’ Liability


  
	

  29 


  	

  Security Deposit


  
	

  30 


  	

  Representations


  
	

  31 


  	

  Reservation in

  Favor of Tenant


  
	

  32

  


  	

  Tenant’s

  Certificates and Mortgagee Notice Requirements


  
	

  33 


  	

  Appraisal,

  Waiver of Jury Trial and Arbitration


  
	

  34 


  	

  Severability


  
	

  35

  


  	

  Notices


  
	

  36

  


  	

  Captions


  
	

  37 


  	

  Counterparts


  
	

  38 


  	

  Applicable Law


  
	

  39 


  	

  Exclusive Benefit


  
	

  40 


  	

  Successors


  
	

  41 


  	

  Amendments


  
	

  42

  


  	

  Waiver


  
	

  43 


  	

  Course of Performance


  
	

  44 


  	

  Landlord’s Concessions


  





 




i





























 




TABLE OF EXHIBITS




 




	

   


  	

  Exhibit


  
	

  Leased

  Premises Floor Space Diagram


  	

  A


  
	

  Property Description


  	

  B


  
	

  Building Description


  	

  C


  
	

  Building Rules and

  Regulations


  	

  D


  
	

  Definitions and

  Index of Definitions


  	

  E


  
	

  Janitorial Services

  Description


  	

  F


  
	

  Tenant’s Certificate


  	

  G


  





 




ii





























 




LEASE AND LEASE AGREEMENT, dated as of June 11, 2002,

between SCV Partners, a New Jersey general partnership, with offices c/o Boston

Properties at 302 Carnegie Center, Princeton, New Jersey 08540 (the “Landlord”),

and Bio-Technology General Corp., a Delaware corporation, with its principal

office at 70 Wood Avenue South, Iselin, New Jersey 08830 (the “Tenant”).




 




Subject to all the terms and conditions set forth

below, the Landlord and the Tenant hereby agree as follows:




 




1  Definitions.  Certain terms and phrases used in this

Agreement (generally those whose first letters are capitalized) are defined in

Exhibit E attached hereto and, as used in this Agreement, they shall have the

respective meanings assigned or referred to in that exhibit.




 




2  Lease of

the Leased Premises.




 




2.1  The

Landlord shall, and hereby does, lease to the Tenant, and the Tenant shall, and

hereby does, accept and lease from the Landlord, the Initial Leased Premises

during the Term. The Initial Leased Premises consist of 53,340 square feet of

gross rentable floor space on the twelfth and fourteenth floors of One Tower

Center, as more fully described in the definition of Leased Premises set forth

in Exhibit E attached hereto.




 




2.2  The Landlord

shall lease to the Tenant, and the Tenant shall accept and lease from the

Landlord, any Additional Leased Premises from the respective commencement date

thereof for the term provided in subsection 44.3 of this Agreement.




 




2.3  The

Landlord shall, and hereby does, grant to the Tenant, and the Tenant shall, and

hereby does, accept from the Landlord, the non-exclusive right to use the

Common Facilities during the Term for itself, its employees, other agents and

Guests in common with the Landlord, any tenants of Other Leased Premises, any

of their respective employees, other agents and guests and such other persons

as the Landlord may, in the Landlord’s sole discretion, determine from time to

time.




 




3  Rent.




 




3.1  The Tenant

shall punctually pay the Rent for the Leased Premises for the Term to the

Landlord in the amounts and at the times set forth below, without bill or other

demand and without any offset, deduction or, except as may be otherwise

specifically set forth in this Agreement, abatement whatsoever.




 




3.2  The Basic

Rent for the Initial Leased Premises during




 




1





























 




the Initial Term shall be at the rate per year set forth below:




 








	

  Period


  	

   


  	

  Annual Rental Rate


  	

   


  
	

   


  	

   


  	

   


  	

   


  
	

  One Hundred

  Fifty (150) day period immediately Commencement Date


  	

   


  	

  $


  	

  48,006.00


  	

   


  
	

   


  	

   


  	

   


  	

   


  
	

  One Hundred

  Fifty First (151st) day following Commencement Date through forty first full

  calendar month following Commencement Date


  	

   


  	

  $


  	

  1,706,880.00


  	

   


  
	

   


  	

   


  	

   


  	

   


  
	

  Forty second

  full calendar month following Commencement Date through eighty ninth full

  calendar month following Commencement Date


  	

   


  	

  $


  	

  1,813,560.00


  	

   


  
	

   


  	

   


  	

   


  	

   


  
	

  Ninetieth full

  calendar month following Commencement Date through one hundred twenty fifth

  full calendar month following Commencement Date


  	

   


  	

  $


  	

  1,866,900.00


  	

   


  










 




The annual rate of Basic Rent for the Leased Premises during any

Renewal Term shall be calculated as set forth in subsection 6.3 of this

Agreement for the respective Renewal Term. The annual rate of Basic Rent

applicable to any Additional Leased Premises during the Expiring Term shall be

as set forth in subsection 44.3 of this Agreement.




 




3.3  The Tenant

shall punctually pay the applicable Basic Rent in equal monthly installments in

advance on the first day of each month during the Term, with the exception of

Basic Rent due for the first full calendar month following the end of the one

hundred fifty day (150) period immediately subsequent to the Commencement Date

and for any period of less than a full calendar month which begins on the one

hundred fifty first (151st) day following the Commencement Date and

ends on the date immediately prior to said first full calendar month. The

Tenant shall pay the Basic Rent for the first full calendar month following the

end of the one hundred fifty day (150) period immediately subsequent to the

Commencement Date upon execution and delivery of this Agreement. The Tenant

shall punctually pay the Basic Rent for any period of less than a full calendar

month which begins on the one hundred fifty first (151st) day

following the Commencement Date and ends on the date immediately prior to said

first full calendar month on the Commencement Date.




 




3.4  The Basic

Rent and the Additional Rent for any period of less than a full calendar month

shall be prorated. In the event 




 




2





























 




that any installment of Basic Rent cannot be calculated by the time

payment is due, such portion as is then known or calculable shall be then due

and payable; and the balance shall be due upon the Landlord’s giving notice to

the Tenant of the amount of the balance due.




 




3.5  The

Additional Rent for the Leased Premises during the Term shall be promptly paid

by the Tenant in the respective amounts and at the respective times set forth

in this Agreement.




 




3.6  That

portion of any amount of Rent or other amount due under this Agreement which is

not paid on the day it is first due (or by the fifth day after the day it is

first due in the case of the first payment in any period of twelve consecutive

calendar months that is not paid on the day it is first due) shall incur a late

charge equal to the sum of: (i) five (5%) percent of that portion of any amount

of Rent or other amount due under this Agreement which is not paid on the day

it is first due and (ii) interest on that portion of any amount of Rent or

other amount due under this Agreement which is not paid on the day it is first

due at the Base Rate(s) in effect from time to time plus two (2) additional

percentage points from the day such portion is first due through the day of

receipt thereof by the Landlord. Any such late charge due from the Tenant shall

be due immediately.




 




3.7  Any amount

of Rent or other amount which is due upon execution and delivery of this

Agreement shall be paid by the Tenant to the Landlord at the Landlord’s office

at 302 Carnegie Center, Princeton, New Jersey 08540. Otherwise, the Tenant

shall make all payments of Rent or other amounts due under this Agreement to

the Landlord by electronic funds (wire) transfer to FleetBoston (Boston, Massachusetts),

ABA# 011 000 390, for credit to the account of Boston Properties L.P., account

no. 522-38660, or by mail to Boston Properties Limited Partnership, P. O. Box

3557, Boston, Massachusetts 02241-3557. By notice to the Tenant from time to

time, the Landlord may change the foregoing payment instructions with regard to

amounts not previously paid.




 




4  Term.




 




4.1  The

Initial Term and the Term shall commence on the Commencement Date and shall

continue for ten (10) years and five (5) months from the beginning of the

Initial Year, unless sooner terminated in accordance with section 24 of this

Agreement.




 




4.2 Unless the condition contemplated by subsection

4.3 of this Agreement occurs, the Commencement Date shall be the Substantial

Completion Date, adjusted to an earlier date to compensate the Landlord for the

cumulative number of days of Tenant Delay.




 




4.3  In the

event the Tenant takes possession of or occupies the Initial Leased Premises

for the conduct of business earlier than the Substantial Completion Date, the

Commencement Date shall 




 




3





























 




be the first date of such earlier taking of possession or occupancy, as

adjusted to an earlier date to compensate the Landlord for the cumulative

number of days of Tenant Delay.




 




4.4  Once it is

ascertained in accordance with subsections 4.2 and 4.3 of this Agreement, the

Landlord shall give prompt notice of the Commencement Date to the Tenant; and

if the Tenant does not object thereto by notice given to the Landlord within

ten (10) days of the Landlord’s notice, the date set forth in the Landlord’s

notice shall thereafter be conclusively presumed to be the Commencement Date.




 




5  Preparation of the Leased Premises.




 




5.1  The timely

preparation of the Tenant Plan through architects and engineers, licensed in

New Jersey, selected by the Tenant shall be the Tenant’s obligation and

expense. The Tenant Plan shall be prepared consistently with the Building plans

and specifications and the Landlord’s tenant construction specifications in

effect. The Tenant shall deliver the complete Tenant Plan to the Landlord not

later than the Tenant Plan Due Date. During the fourteen (14) days immediately

succeeding the submission of the complete Tenant Plan to the Landlord, the

Tenant Plan shall be subject to the Landlord’s and its engineers’ reasonable

review, comment, consultation and objection with respect to any lack of

consistency with the Building plans and specifications or the Landlord’s tenant

construction specifications then in effect, any structural changes to, or any

changes in the exterior of, the Building or any portion thereof required

thereby, any changes to Systems required thereby, any interface or connection

with Systems or any adverse effect upon the functional utility or rental value

of the Leased Premises. If the Landlord timely and otherwise properly objects

to the Tenant Plan by notice to the Tenant setting forth therein any of the

specified reasons in reasonable detail, the Tenant shall have its architects

and engineers revise the Tenant Plan and deliver the revised complete Tenant

Plan to the Landlord within ten (10) days of the Landlord’s giving timely

notice of its objection to the Tenant.




 




5.2  In the

event that the Tenant desires to name a qualified general contractor for the

purpose of including it among those invited to bid on the work called for by

the Tenant Plan, the Tenant shall, prior to the Tenant Plan Due Date, submit in

writing to the Landlord the name, address, telephone number and telefacsimile

number of one qualified general contractor active in the Middlesex County, New

Jersey area.  As soon as practicable

after the receipt by the Landlord of the final Tenant Plan, the Landlord shall

solicit bids for the construction of the work called for by the Tenant Plan

from at least three general contractors, including the general contractor, if

any, timely nominated by the Tenant. The Landlord and the Tenant shall promptly

review the bids after receipt. Following bid review and qualification for the

Tenant’s Buildout, the Landlord and the 




 




4





























 




Tenant shall promptly select in a writing the best qualified and

quantified general contractor; but if the Landlord and the Tenant are unable to

agree upon the selection of the best qualified and quantified general

contractor by the end of the bid review and qualification period for the

Tenant’s Buildout, the selection of the best qualified and quantified general

contractor to be awarded the contract for the Tenant’s Buildout shall be made

by the Landlord acting in its sole, reasonable discretion.




 




5.3  The

Landlord shall give notice to the Tenant of the Landlord’s price to the Tenant

to perform the Tenant’s Buildout utilizing the Landlord’s general

contractor.  The Landlord’s price shall

include an amount equal to five (5%) percent of the first one million

($1,000,000.00) dollars and three (3%) percent of the amount in excess of one

million ($1,000,000.00) dollars of the Landlord’s general contractor’s

aggregate price (which shall include additional costs of any change orders) for

the Tenant’s Buildout as the Landlord’s construction supervision fee. Said fee

shall not apply to any architectural, design, telecommunications or movable

furniture installation fees or costs paid directly by the Tenant to its

contractors.  Subject to the terms of

Section 44.1 of this Agreement, the Tenant shall pay such price to the Landlord

in proportion to the progress of such work, as and when billed by the Landlord

at intervals, corresponding to the invoicing by the Landlord’s general

contractor, with payment of any remaining final balance due from the Tenant

upon substantial completion of such work.




 




5.4  The

Landlord shall cause the selected general contractor selected in accordance

with subsection 5.2 of this Agreement to construct the Tenant’s Buildout in

accordance with the Tenant Plan in a good and workmanlike manner and in

accordance with all applicable building codes. The construction of any changes

to the Tenant Plan made by the Tenant shall be an additional expense to the

Tenant.  The Landlord shall use

reasonable commercial efforts to achieve Substantial Completion of the Tenant’s

Buildout by the Target Date.




 




6  Options.




 




6.1  If, prior

to the date of exercise thereof (a)(i) no Event of Default shall have occurred

or (ii) if an Event of Default shall have occurred, the Tenant shall have

previously cured it in full or the Landlord shall have waived it and (b) there

shall not have been a History of Recurring Events of Default, the Tenant shall

have two (2) options, exercisable exclusively at the time and in the manner set

forth below in subsection 6.2 of this Agreement, to extend the Term for one

additional period of five years’ duration per each option.  The periods to which these options relate shall

respectively commence upon the end of the respective Expiring Term.  Each option shall be defined as an “Option

to Renew.”




 




6.2  In the

event the Tenant is interested in exercising the 




 




5





























 




next available Option to Renew, the Tenant shall give timely notice of

the Tenant’s interest to the Landlord no earlier than 24, and no later than 17,

months prior to the end of the Expiring Term. Within one hundred eighty (180)

days of the giving of such notice, the Landlord shall give notice to the Tenant

of the Landlord’s quotation of the Market Rental Rate for the Leased Premises

during the Renewal Term. In the event the Tenant desires to exercise the next

available Option to Renew, the Tenant shall do so exclusively by giving timely

notice thereof to the Landlord no later than 15 months prior to the end of the

Expiring Term, and indicating in that notice whether or not the Landlord’s

quotation of the Market Rental Rate for the Leased Premises during the

applicable Renewal Term, as set forth in the Landlord’s notice, is acceptable.

In the event the Tenant fails timely to notify the Landlord of its interest in

exercising the next available Option to Renew or timely to exercise the next

available Option to Renew, the Option to Renew shall thereupon expire.




 




6.3  The Basic

Rent for the Leased Premises during the applicable Renewal Term shall be the

Landlord’s quotation of the Market Rental Rate for the Leased Premises during

the Renewal Term, as set forth in the Landlord’s notice to the Tenant, unless

the Tenant, in the Tenant’s notice contemplated by the third sentence of

subsection 6.2 of this Agreement affirmatively indicates that the Landlord’s

quotation of the Market Rental Rate set forth in the Landlord’s notice is not

acceptable, in which case the Basic Rent for the Leased Premises during the

respective Renewal Term shall be the greater of:




 




6.3.1  the Market Rental Rate as determined in

accordance with the procedure described in subsection 33.1 of this Agreement;

or




 




6.3.2  the annual rate of Basic Rent in effect

during the last 12 months of the then Expiring Term.




 




6.4  The Option

to Renew may not be exercised by any person other than the Tenant.




 




7  Use and Occupancy.




 




7.1  The Tenant

shall continuously occupy and use the Leased Premises during the Term

exclusively as an office for its bio-pharmaceutical business.




 




7.2  In

connection with the Tenant’s use and occupancy of the Leased Premises and use

of the Common Facilities, the Tenant shall observe, and the Tenant shall cause

the Tenant’s employees, other agents and Guests to observe, each of the

following:




 




7.2.1  the

Tenant shall not do, or permit or suffer the doing of, anything which might

have the effect of creating not insignificantly increased risk of, or damage

from, fire, 




 




6





























 




explosion or other casualty;




 




7.2.2  the

Tenant shall not do, or permit or suffer the doing of, anything which would

have the effect of (a) increasing any premium for any liability, property,

casualty or excess coverage insurance policy otherwise payable by the Landlord

or any tenant of Other Leased Premises or (b) making any such types or amounts

of insurance coverage unavailable or less available to the Landlord or any

tenant of Other Leased Premises;




 




7.2.3  to the

extent they are not inconsistent with this Agreement, the Tenant and the

Tenant’s employees, other agents and Guests shall comply with the Building

Rules and Regulations attached hereto as Exhibit D, and with any changes made

therein by the Landlord if, with respect to any such changes, the Landlord

shall have given notice of the particular changes to the Tenant and such

changes shall not materially adversely affect the conduct of the Tenant’s

business in the Leased Premises;




 




7.2.4  the

Tenant and the Tenant’s employees, other agents and Guests shall not create,

permit or continue any Nuisance in or around the Tower Center Complex, the

Leased Premises, the Other Leased Premises, the Building, the Common Facilities

and the Property;




 




7.2.5  the

Tenant and the Tenant’s employees, other agents and Guests shall not permit the

Leased Premises to be regularly occupied by more than one individual per two

hundred (200) square feet of usable floor space of the Leased Premises;




 




7.2.6  the

Tenant and the Tenant’s employees, other agents and Guests shall comply with

all Federal, state and local statutes, ordinances, rules, regulations and

orders as they pertain to the Tenant’s use and occupancy of the Leased

Premises, to the conduct of the Tenant’s business and to the use of the Common

Facilities, except that this subsection shall not require the Tenant to make

any structural or other changes that may be required thereby that are generally

applicable to the Building as a whole;




 




7.2.7  the Tenant

and the Tenant’s employees, other agents and Guests shall comply with the

requirements of the Board of Fire Underwriters (or successor organization) and

of any insurance carriers providing liability, property, casualty or excess

insurance coverage regarding the Property, the Building, the Common Facilities

or any portions thereof, any other improvements on the Property and the Tower

Center Complex, except that this subsection shall not require the Tenant to

make any structural changes that may be required thereby that are generally

applicable to the Building as a whole;




 




7.2.8  the

Tenant and the Tenant’s employees, other agents and Guests shall not bring or

discharge any substance (solid liquid or gaseous), or conduct any activity, in

or on the 




 




7





























 




Tower Center Complex, the Property, the Building, the Common Facilities

or the Leased Premises that shall have been identified by the scientific

community or by any Federal, state or local statute (including, without

limiting the generality of the foregoing, the Spill Compensation and Control

Act (58 N.J.S.A. 23.11 et seq.) and the Industrial Site Recovery Act (13

N.J.S.A. 1 K-6 et seq.), as they may be amended), ordinance, rule,

regulation or order as toxic or hazardous to health or to the environment;




 




7.2.9  the

Tenant and the Tenant’s employees, other agents and Guests shall not draw

electricity in the Leased Premises in excess of the rated capacity of the

electrical conductors and safety devices including, without limiting the

generality of the foregoing, circuit breakers and fuses, by which electricity

is distributed to and throughout the Leased Premises and, without the prior

written consent of the Landlord in each instance, shall not connect any fixtures,

appliances or equipment to the electrical distribution system serving the

Building and the Leased Premises other than typical professional office

equipment such as minicomputers, microcomputers, typewriters, copiers,

telephone systems, coffee machines and table top microwave ovens, and a

dishwasher (provided that the Tenant installs a tankless hot water heater under

the counter space within the pantry where the dishwasher is located to provide

heated water for such dishwasher) none of which, considered individually and in

the aggregate, overall and per fused or circuit breaker protected circuit,

shall exceed the above limits;




 




7.2.10  on a

timely basis the Tenant shall pay directly and promptly to the respective

taxing authorities any taxes (other than Taxes) charged, assessed or levied

exclusively on the Leased Premises or arising exclusively from the Tenant’s use

and occupancy of the Leased Premises;




 




7.2.11  the

Tenant shall not initiate any appeal or contest of any assessment or collection

of Taxes for any period without, in each instance, the prior written consent of

the Landlord which, without being deemed unreasonable, the Landlord may

withhold if the Building was not ninety (90%) percent occupied by paying

tenants throughout that period or if the Tenant is not joined by tenants of

Other Leased Premises that leased throughout that period, and that are then

leasing, at least eighty (80%) percent of all Other Leased Premises, determined

by their gross rentable floor space; and




 




7.2.12  the

Tenant and the Tenant’s employees, other agents and Guests shall abide by the

Landlord’s allocation of spaces in the Parking Facilities among the Tenant and

tenants of Other Leased Premises on a pro rata basis, which pro rata allocation

the Landlord reserves the right to make.




 




8





























 




8  Utilities, Services, Maintenance and

Repairs.




 




8.1  The

Landlord shall provide or arrange for the provision of:




 




8.1.1  such

maintenance and repair of the Building (except the Leased Premises and Other

Leased Premises); the Common Facilities; and the building standard heating,

ventilation and air conditioning systems, any plumbing systems and the

electrical systems in the Building, the Common Facilities, the Leased Premises

and Other Leased Premises as is customarily provided for first class office

buildings in the immediate area;




 




8.1.2  such

janitorial services for the Building, the Leased Premises and Other Leased

Premises as are set forth in Exhibit F attached hereto and such garbage removal

from the Building and the Common Facilities as is customarily provided for

first class office buildings in the immediate area;




 




8.1.3  water to

the Building and, if the appropriate (consistent with section 12 of this

Agreement, the Tenant may connect domestic water piping to a location approved

by the Landlord within the common core area of the Building for the Tenant’s

use within the Leased Premises) plumbing has been installed therein, the Leased

Premises and Other Leased Premises;




 




8.1.4  sewage

disposal for the Building;




 




8.1.5  passenger elevator service for the Building;




 




8.1.6  snow

clearance from, and sweeping of, Parking Facilities and driveways which are

part of the Property or the Common Facilities; and




 




8.1.7  the

maintenance of landscaping which is part of the Property or the Common

Facilities.




 




8.2 The Landlord shall provide or arrange for the

provision of:




 




8.2.1  such

maintenance and repair of the Leased Premises as is customarily provided for

leased premises in first class office buildings in the immediate area, except

for refinishing walls and wall treatments, base, ceilings, floor treatments and

doors in general from time to time or for gouges, spots, marks, damage or

defacement caused by anyone other than the Landlord, its employees and other

agents, and except for the Tenant’s furniture, furnishings, equipment

including, without limiting the generality of the foregoing, any supplemental

air conditioning equipment installed by or at the request of the Tenant at any

time, and other property;




 




8.2.2  such

maintenance and repair of the Other Leased Premises as is customarily provided

for leased premises in first 




 




9





























 




class office buildings in the immediate area, except for refinishing

walls and wall treatments, base, ceilings, floor treatments and doors in

general from time to time or for gouges, spots, marks, damage or defacement

caused by anyone other than the Landlord, its employees and other agents, and

except for the respective tenants’ furniture, furnishings, equipment and other

property;




 




8.2.3  the

electricity required for the operation of the Building, the Property and the

Common Facilities during Regular Business Hours and, on a reduced service

basis, during other than Regular Business Hours, and, at all times, on and

after the Commencement Date, seven watts of electrical power per rentable

square foot of the Leased Premises (exclusive of electrical power required in

the Leased Premises for building standard heating, ventilation and air conditioning

purposes, but including on each floor a minimum of 130 KVA transformer capacity

at 120/208 variable alternating current and two watts per usable square foot

for lighting at 480/277 voltage) for the Leased Premises, and, at all times,

the electricity required for Other Leased Premises;




 




8.2.4  such

building standard heat, ventilation and air conditioning for the Building, the

Leased Premises and Other Leased Premises as is customarily provided for first

class office buildings in the immediate area for the comfortable use of the

Building during Regular Business Hours; and




 




8.2.5  heated

water to the Building (except the Leased Premises and Other Leased Premises,

unless the appropriate (approved by the Landlord) plumbing, fixtures and hot

water heating units have been installed therein); and




 




8.2.6  during

other than Regular Business Hours, upon request faxed by the Tenant to the

Landlord during Regular Business Hours or by request delivered to the

Landlord’s security desk during other than Regular Business Hours, at least two

hours prior to the requested service, the Landlord shall provide heat,

ventilation and air conditioning on a full service basis on such day(s) in

question at a cost to the Tenant of $65.00 per hour or partial hour of use per

floor.




 




8.3  Except as

specifically set forth in subsections 8.1 and 8.2.1 of this Agreement, the

Tenant shall maintain and repair the Leased Premises and any equipment above

building standard installed by, or at the request of, the Tenant and keep the

Leased Premises and the foregoing in as good condition and repair, reasonable

wear and use excepted, as the Leased Premises are upon the respective

completion of any improvements contemplated by sections 5 or 12 of this

Agreement.




 




9  Allocation of the Expense of Utilities,

Services, Maintenance, Repairs and Taxes.




 




9.1  All Tenant

Electric Charges shall be borne by the 




 




10





























 




Tenant.




 




9.2  Between

the Commencement Date and the end of the No Pass Through Period, the Tenant’s

Share of all Operational Expenses and Taxes incurred during such period shall

be borne by the Landlord.




 




9.3  Between

the day after the end of the No Pass Through Period and the end of the Term,

the Tenant’s Share of Operational Expenses and Taxes incurred during each

annual or shorter period ending on (a) December 31 of each year and (b) the end

of the Term shall be borne as follows:




 




9.3.1  the

Tenant’s Share of: Operational Expenses and Taxes incurred during each such

period of twelve (12) months (or shorter period), up to the amounts of Base

Year Operational Expenses and Base Year Taxes, respectively (or proportional

amount thereof for periods shorter than twelve (12) months), shall be borne by

the Landlord; and




 




9.3.2  the

Tenant’s Share of: the amounts by which Operational Expenses and Taxes incurred

during each such period of twelve (12) months (or shorter period) exceed Base

Year Operational Expenses and Base Year Taxes, respectively (or proportional

amount thereof for periods shorter than twelve (12) months) shall be allocated

to, and borne by, the Tenant as more specifically set forth in section 10 of

this Agreement.




 




10  Computation and Payment of Allocated

Expenses of Utilities, Services, Maintenance, Repairs, Taxes and Capital

Expenditures.




 




10.1  The

Tenant shall promptly pay the following additional amounts to the Landlord at

the respective times set forth below:




 




10.1.1  commencing with the first day after the end of the No Pass Through

Period, and on the first day of each month thereafter during the Term,

one-twelfth (1/12) of the Tenant’s Share of the amount by which Taxes for the

then current calendar year exceeds Base Year Taxes, computed in accordance with

subsection 10.5 of this Agreement;




 




10.1.2  within

twenty (20) days of the Landlord’s giving notice to the Tenant after the close

of each calendar year closing during the Term, commencing with the first

calendar year closing after the close of the No Pass Through Period, and after

the end of the Term, the Tenant’s Share of the difference between the

Landlord’s previously projected amount of Taxes for such period and the actual

amount of Taxes for such period, in either case in excess of Base Year Taxes,

computed in accordance with subsection 10.6 of this Agreement (unless such difference

is a negative amount, in which case the Landlord shall credit such difference

against any amounts next due from the Tenant under subsections 10.1.1 and 10.5

of this Agreement, except to the extent that this Agreement has expired and

there are no future 




 




11





























 




amounts due or payable by the Tenant, the Tenant shall be entitled to

receive a refund by check for such difference);




 




10.1.3  commencing with the first day after the end of the No Pass Through

Period, and on the first day of each month thereafter during the Term,

one-twelfth (1/12) of the Tenant’s Share of the amount by which Operational

Expenses for the then current calendar year exceed Base Year Operational

Expenses, computed in accordance with subsection 10.7 of this Agreement;




 




10.1.4  within

twenty (20) days of the Landlord’s giving notice to the Tenant after the close

of each calendar year closing during the Term, commencing with the first

calendar year closing after the close of the No Pass Through Period, and after

the end of the Term, the Tenant’s Share of the difference between the

Landlord’s previously projected amount of Operational Expenses for such period

and the actual amount of Operational Expenses for such period, in either case

in excess of Base Year Operational Expenses, computed in accordance with

subsection 10.8 of this Agreement (unless such difference is a negative amount,

in which case the Landlord shall credit such difference against any amounts

next due from the Tenant under subsections 10.1.3 and 10.7 of this Agreement);




 




10.1.5 

commencing with the first day of the first month after the end of the No

Pass Through Period, after the Landlord gives any notice contemplated by

subsection 10.11 of this Agreement to the Tenant, and continuing on the first

day of each month thereafter until the earlier of (a) the end of the Term or

(b) the last month of the useful life set forth in the respective notice,

one-twelfth (1/12) of the Tenant’s Share of any Annual Amortized Capital Expenditure,

computed in accordance with subsection 10.11 of this Agreement;




 




10.1.6  on the

first day of each month during the Term, commencing on the Commencement Date,

the monthly Tenant Electric Charges, computed in accordance with subsection

10.12 of this Agreement;




 




10.1.7  on the

first day of each month during the Term, one-twelfth (1/12) of the Tenant’s

Share of the Net Utilities  Expenses,

computed in accordance with subsection 10.9 of this Agreement;




 




10.1.8  within

twenty (20) days of the Landlord’s giving notice to the Tenant after the close

of each calendar year closing during the Term, and after the end of the Term,

the Tenant’s Share of the difference between the Landlord’s previously

projected amount of Net Utilities Expenses for such period and the actual

amount of Net Utilities Expenses for such period, computed in accordance with

subsection 10.10 of this Agreement(unless such difference is a negative amount,

in which case the Landlord shall credit such difference against any amounts

next due from the Tenant under subsections 10.1.7 and 




 




12





























 




10.9 of this Agreement); and




 




10.1.9 

promptly as and when billed therefor by the Landlord, the amount of any

expense which would otherwise fall within the definition of Operational

Expenses, but which is specifically paid or incurred by the Landlord for

operation and maintenance of the Building, the Common Facilities or the

Property outside Regular Business Hours at the specific request of the Tenant

or the amount of any expenditure incurred for maintenance or repair of damage

to the Building, the Common Facilities, the Property, the Leased Premises or

the Other Leased Premises caused directly or indirectly, in whole or in part,

by the negligence or intentional act of the Tenant or any of its employees,

other agents or Guests.




 




10.2  “Operational Expenses” means all expenses paid or incurred by the

Landlord in connection with the Property, the Building, the Common Facilities

and any other improvements on the Property and their operation and maintenance

(other than Taxes (which are separately allocated to the Tenant in accordance

with subsections 10.1.1 and 10.1.2 of this Agreement), Capital Expenditures

(which are separately allocated to the Tenant in accordance with subsection

10.1.5 of this Agreement), Net Utilities Expenses (which are separately

allocated to the Tenant in accordance with subsection 10.1.7 and 10.1.8 of this

Agreement) and those expenses contemplated by subsections 10.1.6 and 10.1.9 of

this Agreement)) including, without limiting the generality of the foregoing:




 




10.2.1  the

expense of providing the services, maintenance and repairs contemplated by

subsections 8.1, 8.2.1 and 8.2.2 of this Agreement, whether furnished by the

Landlord’s employees or by independent contractors or other agents;




 




10.2.2  wages,

salaries, fees and other compensation and payments and payroll taxes and

contributions to any social security, unemployment insurance, welfare, pension

or similar fund and payments for other fringe benefits required by law or union

agreement (or, if the employees or any of them are not represented by a union,

then payments for benefits comparable to those generally required by union

agreement in first class office buildings in the immediate area which are

unionized) made to or on behalf of any employees of the Landlord performing

services rendered in connection with the operation and maintenance of the

Building, the Common Facilities and the Property, including, without limiting

the generality of the foregoing, elevator operators, elevator starters, window

cleaners, porters, janitors, maids, miscellaneous handymen, watchmen, persons

engaged in patrolling and protecting the Building, the Common Facilities and

the Property, carpenters, engineers, firemen, mechanics, electricians,

plumbers, other tradesmen, other persons engaged in the operation and

maintenance of the Building, Common Facilities and Property, Building

superintendent and assistants, Building manager, and clerical and

administrative personnel;




 




13





























 




10.2.3  the

uniforms of all employees and the cleaning, pressing and repair thereof;




 




10.2.4 

premiums and other charges incurred by the Landlord with respect to all

insurance relating to the Building, the Common Facilities and the Property and

the operation and maintenance thereof, including, without limitation: property

and casualty, fire and extended coverage insurance, including windstorm, flood,

hail, explosion, other casualty, riot, rioting attending a strike, civil

commotion, aircraft, vehicle and smoke insurance; public liability insurance;

elevator, boiler and machinery insurance; excess liability coverage insurance;

use and occupancy insurance; workers’ compensation and health, accident, disability

and group life insurance for all employees; and casualty rent insurance;




 




10.2.5  sales

and excise taxes and the like upon any Operational Expenses and Capital

Expenditures;




 




10.2.6  management fees of any independent managing agent for the Property,

the Building or the Common Facilities; and if there shall be no independent

managing agent, or if the managing agent shall be a person affiliated with the

Landlord, the management fees that would customarily be charged for the

management of the Property, the Building and the Common Facilities by an

independent, first class managing agent in the immediate area;




 




10.2.7  the

cost of replacements for tools, supplies and equipment used in the operation,

service, maintenance, improvement, inspection, repair and alteration of the

Building, the Common Facilities and the Property;




 




10.2.8  the

cost of repainting or otherwise redecorating any part of the Building or the

Common Facilities;




 




10.2.9  decorations for the lobbies and other Common Facilities in the

Building;




 




10.2.10  the

cost of telephone service, postage, office supplies, maintenance and repair of

office equipment and similar costs related to the operation of the offices of

the Building superintendent and manager;




 




10.2.11  the

cost of licenses, permits and similar fees and charges related to operation,

repair and maintenance of the Building, the Property and the Common Facilities;




 




10.2.12  an

Allocable Share of service, replacement, repair, maintenance and other charges

assessed from time to time by the Tower Center South Condominium Association to

the Building; and




 




14





























 




10.2.13  any

and all other expenditures of the Landlord in connection with the operation,

alteration, repair or maintenance of the Property, the Common Facilities or the

Building as a first-class office building and facilities in the immediate area

which are properly treated as an expense fully deductible as incurred in

accordance with generally applied real estate accounting practice.




 




10.3  “Capital

Expenditures” means the following expenditures incurred or paid by the Landlord

in connection with the Property, the Building, the Common Facilities and any

other improvements on the Property:




 




10.3.1  all

costs and expenses incurred by the Landlord in connection with retro-fitting

the entire Building or the Common Facilities, or any portion thereof, to comply

with any change in Federal, state or local statute, rule, regulation, order or

requirement which change takes effect after the original completion of the

Building;




 




10.3.2  all

costs and expenses incurred by the Landlord for replacements (in lieu of

further maintenance) of the Property, the Building or the Common Facilities or

portions thereof for the purpose of continued operation of the Property, the

Building and the Common Facilities as a first class office complex in the

immediate area, if the Landlord shall have reasonably projected that the

Capital Expenditure to be incurred for the respective replacement item will be

less than the cost of projected continuing maintenance of the item to be

replaced over the useful life of the replacement item to be installed; and




 




10.3.3  all

costs and expenses incurred by the Landlord in connection with the installation

of any energy, labor or other cost saving device or system on the Property or

in the Building or the Common Facilities.




 




10.4 Neither 

“Operational Expenses” nor “Capital Expenditures” shall include any of

the following:




 




10.4.1 

principal or interest on any mortgage indebtedness on the Property, the

Building or any portion thereof;




 




10.4.2  any

capital expenditure, or amortized portion thereof, other than those included in

the definition of Capital Expenditures set forth in subsection 10.3 above;




 




10.4.3  expenditures for any leasehold improvement which is made in

connection with the preparation of any portion of the Building for occupancy by

a new tenant or which is not made generally to or for the benefit of the Leased

Premises and all Other Leased Premises or generally to the Building or the

Common Facilities;




 




10.4.4 

expenditures for repairs or replacements 




 




15





























 




occasioned by fire or other casualty to the Building or the Common

Facilities;




 




10.4.5 

expenditures for repairs, replacements or rebuilding occasioned by any

of the events contemplated by section 16 of this Agreement;




 




10.4.6  expenditures for costs, including advertising, promotion and

leasing commissions, incurred in connection with efforts to lease portions of

the Building and to procure new tenants for the Building;




 




10.4.7 

expenditures for the salaries and benefits of the executive officers, if

any, of the Landlord;




 




10.4.8 

depreciation (as that term is used in the accounting sense in the

context of generally applied real estate accounting practice) of the Building,

the Common Facilities and any other improvement on the Property;




 




10.4.9  leasing commissions, attorney’s fees, costs

and disbursements and other expenses incurred in connection with leasing,

renovating and improving space for tenants or other occupants or prospective

tenants of Other Leased Premises;




 




10.4.10  costs including permit, license and

inspection fees incurred in renovating or otherwise improving or decorating,

painting or redecorating vacant lease space or lease space for tenants or other

occupants of Other Leased Premises;




 




10.4.11  the Landlord’s cost of any service sold to a

tenant or other occupant of Other Leased Premises for which the Landlord is

entitled to be reimbursed entirely by such tenant or other occupant as an

additional charge or additional rent over and above the basic rent and

escalations payable under the lease with such tenant or other occupant;




 




10.4.12  expenses in connection with services or

other benefits of a type that the Landlord is not obligated to provide to the

Tenant but which the Landlord is obligated to provide to a tenant or other

occupant of Other Leased Premises;




 




10.4.13  costs incurred by the Landlord due to the

violation by the Landlord of any the terms and conditions of this Agreement or

any other lease with a tenant of Other Leased Premises; and




 




10.4.14  overhead and profit increments paid to

subsidiaries or affiliates of the Landlord for supplies or other materials, to

the extent that the cost of the supplies or materials exceed the cost that

would have been paid had the supplies or materials been provided by

unaffiliated parties on a competitive basis.




 




16





























 




10.5  As soon

as practicable after the close of the No Pass Through Period and December 31 of

each year thereafter, any portion of which is during the Term, the Landlord

shall furnish the Tenant with a notice setting forth:




 




10.5.1  Taxes

billed, or if a bill has not then been received for the entire period, the

Landlord’s projection of Taxes to be billed, for the then current calendar

year;




 




10.5.2  the

amount of Base Year Taxes;




 




10.5.3  the

amount, if any, by which item 10.5.1 above exceeds item 10.5.2 above; and




 




10.5.4  the

Tenant’s Share of item 10.5.3 above.




 




10.6  As soon

as practicable after December 31 of each year during the Term and after the end

of the Term, the Landlord shall furnish the Tenant with a notice setting forth:




 




10.6.1  the

actual amount of Taxes for the preceding calendar year in excess of Base Year

Taxes (or proportional amount thereof for shorter periods during the Term);




 




10.6.2  the

Landlord’s previously projected amount of Taxes for the preceding calendar year

in excess of Base Year Taxes (or proportional amount thereof for shorter

periods during the Term);




 




10.6.3  the

difference obtained by subtracting item 10.6.2 above from item 10.6.1 above;

and




 




10.6.4  the

Tenant’s Share of item 10.6.3 above.




 




10.7  As soon

as practicable after the close of the No Pass Through Period and December 31 of

each year thereafter, any portion of which is during the Term, the Landlord

shall furnish the Tenant with a notice setting forth:




 




10.7.1  the

Landlord’s projection of annual Operational Expenses for the current period (if

any portion thereof is during the Term);




 




10.7.2  the

amount of the Base Year Operational Expenses;




 




10.7.3 the amount, if any, by which item 10.7.1 above

exceeds item 10.7.2 above; and




 




10.7.4 the Tenant’s Share of item 10.7.3 above.




 




10.8  As soon

as practicable after December 31 of each year during the Term and after the end

of the Term, the Landlord shall furnish the Tenant with a notice setting forth:




 




17





























 




10.8.1  the

actual amount of Operational Expenses for the preceding calendar year in excess

of Base Year Operational Expenses (or proportional amount thereof for shorter

periods during the Term);




 




10.8.2  the

Landlord’s previously projected amount of Operational Expenses for the

preceding calendar year in excess of Base Year Operational Expenses (or

proportional amount thereof for shorter periods during the Term);




 




10.8.3  the

difference obtained by subtracting item 10.8.2 above from item 10.8.1 above;

and




 




10.8.4  the

Tenant’s Share of item 10.8.3 above.




 




10.9  As soon

as practicable after the date of this Agreement and December 31 of each year

thereafter, any portion of which is during the Term, the Landlord shall furnish

the Tenant with a notice setting forth:




 




10.9.1  the

Landlord’s projection of annual Net Utilities Expenses for the current period

(if any portion thereof is during the Term); and




 




10.9.2  the

Tenant’s Share of item 10.9.1 above.




 




10.10  As soon

as practicable after December 31 of each year during the Term and after the end

of the Term, the Landlord shall furnish the Tenant with a notice setting forth:




 




10.10.1  the

actual amount of Net Utilities Expenses for the preceding calendar year (or

proportional amount thereof for shorter periods during the Term);




 




10.10.2  the

Landlord’s previously projected amount of Net Utilities Expenses for the

preceding calendar year (or proportional amount thereof for shorter periods

during the Term);




 




10.10.3  the

difference obtained by subtracting item 10.10.2 above from item 10.10.1 above;

and




 




10.10.4  the

Tenant’s Share of item 10.10.3 above.




 




10.11  As soon

as practicable after incurring any Capital Expenditure, the Landlord shall

furnish the Tenant with a notice setting forth:




 




10.11.1  a

description of the Capital Expenditure and the subject thereof;




 




10.11.2  the

date the subject of the respective Capital Expenditure was first placed into

service and the period of useful life selected by the Landlord in connection

with the 




 




18





























 




determination of the Annual Amortized Capital Expenditure;




 




10.11.3  the

amount of the Annual Amortized Capital Expenditure; and




 




10.11.4  the

Tenant’s Share of item 10.11.3 above.




 




10.12  Tenant

Electric Charges shall be initially charged at the rate of $1.35 per rentable

square foot per year.  From time to

time, whenever the Landlord’s estimate of Tenant Electric Charges changes, the

Landlord shall furnish the Tenant with a notice setting forth its estimate of

Tenant Electric Charges per month. Unless the Tenant desires to question the

Landlord’s then most recent estimate of Tenant Electric Charges exclusively in

the manner set forth below, the Landlord’s then most recent estimate shall be

binding and shall continue in effect until any question raised by the Tenant is

otherwise resolved in accordance with this subsection 10.12 of this

Agreement.  If the Tenant desires to

question the Landlord’s estimate of Tenant Electric Charges, provided that the

Tenant has completed its initial build-out of the Leased Premises, has fully

staffed the Leased Premises and is utilizing such quantity of utility service

which the Tenant reasonably projects will be the average quantity of utility

service which the Tenant will use throughout the Term, the Tenant shall give

notice to the Landlord of its desire. Upon receipt of the Tenant’s notice, the

Landlord shall obtain, at the Tenant’s expense, a reputable, independent

electrical engineer’s formal written estimate and computation of the Tenant

Electric Charges. The engineer’s estimate and computation of Tenant Electric Charges

shall thereupon control for a twelve (12) month period commencing with the date

as of which it is given effect as to Tenant Electric Charges, and until the

Landlord furnishes the Tenant with a subsequent notice setting forth its

estimate of Tenant Electric Charges per month, except to the extent that the

Landlord may increase them in proportion to increases in Net Utilities Expenses

during the same period. Consistent with its obligations under section 12 of

this Agreement and at its sole cost and expense, the Tenant may install and

maintain a sub-meter to measure all the electricity consumed in the Leased

Premises for all purposes other than for heating, ventilation or air

conditioning and ceiling lighting.  The sub-meter

must be capable of providing readings of peak, intermediate peak and off-peak

levels of electrical usage.  If the

Tenant installs and maintains such a sub-meter, Tenant Electric Charges shall

thereafter cease to be based on the Landlord’s estimate of same and thereafter

be equal to the product of the Tenant’s actual usage as sub-metered and read,

at the sole cost and expense of the Tenant, by an independent monitoring

company reasonably approved by the Landlord, and the Electric Charges (at such

reasonable rates as shall be, from time to time, furnished by the Landlord) per

unit of measurement of the sub-meter. 

The Tenant shall cause such monitoring company to furnish a report of

such readings to the Landlord within ten (10) days after the end of each

monthly billing period (of the utility company) during the Term.




 




19





























 




10.13  Within

sixty (60) days after the Landlord gives any notice enumerated in subsections

10.5 through 10.12 of this Agreement, the Tenant or the Tenant’s authorized

agent, upon one week’s prior notice to the Landlord, may inspect the Landlord’s

books and records, as they pertain to the particular expense in question, at

the Landlord’s office regarding the subject of any such notice to verify the

amount(s) and calculation(s) thereof. After payment of its Tenant’s Share of

the respective item for any period in accordance with the provisions of section

10 of this Agreement, no further inspection or review shall be conducted

regarding Operational Expenses, Taxes, Capital Expenditures, Base Year

Operational Expenses or Base Year Taxes except with respect to items and

periods which may have been timely and otherwise properly questioned within the

sixty (60) day period.  No inspection or

review shall be conducted by any agent of the Tenant engaged, in whole or in

part, on a contingent fee basis; and if any inspection or review is conducted,

the Landlord shall have the right to verify that the provisions of this

prohibition have been satisfied in each instance.




 




10.14  The mere

enumeration of an item within the definitions of Operational Expenses and

Capital Expenditures in subsections 10.2 and 10.3 of this Agreement,

respectively, shall not be deemed to create an obligation on the part of the

Landlord to provide such item unless the Landlord is affirmatively required to

provide such item elsewhere in this Agreement.




 




11  Leasehold Improvements, Fixtures and Trade

Fixtures. All leasehold improvements to the Leased

Premises, fixtures installed in the Leased Premises and the blinds and floor

treatments or coverings shall be the property of the Landlord, regardless of

when, by which party or at which party’s cost the item is installed. Movable

furniture, furnishings, trade fixtures and equipment of the Tenant which are in

the Leased Premises shall be the property of the Tenant, except as may

otherwise be set forth in section 23 of this Agreement.




 




12  Alterations, Improvements and Other

Modifications by the Tenant.




 




12.1  The

Tenant shall not make any alterations, improvements or other modifications to

the Leased Premises which effect structural changes in the Building or any

portion thereof, change the functional utility or rental value of the Leased

Premises or, except as may be contemplated by section 5 of this Agreement prior

to the Commencement Date, affect the mechanical, electrical, plumbing or other

systems installed in the Building or the Leased Premises.




 




12.2  The

Tenant shall not make any alterations, improvements or modifications to the

Leased Premises, the Building or the Property or make any boring in the

ceiling, walls or floor of the Leased Premises or the Building unless the

Tenant shall have 




 




20





























 




first:




 




12.2.1  furnished to the Landlord detailed, New Jersey architect-certified

construction drawings, construction specifications and, if they pertain in any

way to the heating, ventilation and air conditioning or other systems of the

Building, related engineering design work and specifications regarding, the

proposed alterations, improvements or other modifications, and paid the

Landlord a drawings, specifications and design review fee equal to ten (10%)

percent of the reasonably estimated cost of the work and, during the course of

the work, an inspection fee equal to five (5%) percent of the reasonably

estimated cost of the work;




 




12.2.2  not

received a notice from the Landlord reasonably objecting thereto in any respect

within fifteen (15) days of the furnishing thereof (which shall not be deemed

the Landlord’s affirmative consent for any purpose);




 




12.2.3  obtained any necessary or appropriate building permits or other

approvals from the Municipality and, if such permits or other approvals are

conditional, satisfied all conditions to the satisfaction of the Municipality;

and




 




12.2.4  met,

and continued to meet, all the following conditions with regard to any

contractors selected by the Tenant and any subcontractors, including

materialmen, in turn selected by any of them:




 




12.2.4.1  the

Tenant shall have sole responsibility for payment of, and shall pay, such

contractors;




 




12.2.4.2  the

Tenant shall have sole responsibility for coordinating, and shall coordinate,

the work to be supplied or performed by such contractors, both among themselves

and with any contractors selected by the Landlord;




 




12.2.4.3  the

Tenant shall not permit or suffer the filing of any mechanic’s notice of

intention or other lien or prospective lien by any such contractor or

subcontractor with respect to the Property, the Common Facilities, the Building

or any other improvements on the Property; and if any of the foregoing should

be filed by any such contractor or subcontractor, the Tenant shall forthwith

obtain and file the complete discharge and release thereof or provide such

payment bond(s) from a reputable, financially sound institutional surety as

will, in the opinions of the Landlord, the holders of any mortgage indebtedness

on, or other interest in, the Property, the Building, the Common Facilities or

any other improvements on the Property, or any portions thereof, and their

respective title insurers, be adequate to assure the complete discharge and

release thereof;




 




12.2.4.4  prior

to any such contractor’s entering 




 




21





























 




upon the Property, the Building or the Leased Premises or commencing

work the Tenant shall have delivered to the Landlord (a) all the Tenant’s

certificates of insurance set forth in section 14 of this Agreement, conforming

in all respects to the requirements of section 14 of this Agreement, except

that the effective dates of all such insurance policies shall be prior to any

such contractor’s entering upon the Property, the Building or the Leased

Premises or commencing work (if any work is scheduled to begin before the

Commencement Date) and (b) similar certificates of insurance from each of the

Tenant’s contractors providing for coverage in equivalent amounts, together

with their respective certificates of workers’ compensation insurance,

employer’s liability insurance and products-completed operations insurance, the

latter providing coverage in at least the amount required for the Tenant’s

comprehensive general public liability and excess insurance;




 




12.2.4.5  with

respect to any such contractors which are union contractors, each such

contractor shall be a party to collective bargaining agreements with those

unions that are certified as the collective bargaining agents of all bargaining

units of such contractor, of which all such contractor’s workpersons shall be

members in good standing;




 




12.2.4.6  each

such contractor shall perform its work in a good and workpersonlike manner and

shall not interfere with or hinder the Landlord or any other contractor in any

manner;




 




12.2.4.7  there

shall be no labor dispute of any nature whatsoever involving any such

contractor or any workpersons of such contractor or the unions of which they

are members with anyone; and if such a labor dispute exists or comes into

existence the Tenant shall forthwith, at the Tenant’s sole cost and expense,

remove all such contractors and their workpersons from the Building, the Common

Facilities and the Property; and




 




12.2.4.8  the

Tenant shall have the sole responsibility for the security of the Leased

Premises and all contractors’ materials, equipment and work, regardless of whether

their work is in progress or completed.




 




12.3  After the

Commencement Date, the Tenant shall not apply any wall covering (except latex

based flat paint) or other treatment to the walls of the Leased Premises

without the prior written consent of the Landlord, which consent shall not be

unreasonably withheld. Notwithstanding the foregoing, the Landlord hereby

consents to the application by the Tenant of wallpaper to the walls located in

the following areas  in the Leased Premises: lobby areas, the

board room located on the fourteenth floor, the executive area located on the

fourteenth floor and the hallway leading to said executive area.




 




13  Landlord’s Rights of Entry and Access.  The Landlord and its 




 




22





























 




authorized agents shall have the following rights of entry and access

to the Leased Premises:




 




13.1  In case

of any emergency or threatened emergency, at any time for any purpose which the

Landlord reasonably believes under such circumstances will serve to prevent,

eliminate or reduce the emergency, or the threat thereof, or damage or

threatened damage to persons and property.




 




13.2  Upon at

least one day’s prior verbal advice to the Tenant, at any time for the purpose

of erecting or constructing improvements, modifications, alterations and other

changes to the Building or any portion thereof, including, without limiting the

generality of the foregoing, the Leased Premises, the Common Facilities or the

Property or for the purpose of repairing, maintaining or cleaning them, whether

for the benefit of the Landlord, the Building, all tenants of Other Leased

Premises in the Building, or one or more tenants of Other Leased Premises, the

Tower Center South Condominium or others. In connection with any such improvements,

modifications, alterations, other changes, repairs, maintenance or cleaning,

the Landlord may close off such portions of the Property, the Building and the

Common Facilities and interrupt such services as may be necessary to accomplish

such work, without liability to the Tenant therefor and without such closing or

interruption being deemed an eviction or constructive eviction or requiring an

abatement of Rent. However, in accomplishing any such work, the Landlord shall

endeavor not to materially interfere with the Tenant’s use and enjoyment of the

Leased Premises or the conduct of the Tenant’s business and to minimize

interference, inconvenience and annoyance to the Tenant.




 




13.3  At all

reasonable hours for the purpose of operating, inspecting or examining the

Building, including the Leased Premises, or the Property.




 




13.4  At any

time after the Tenant has vacated the Leased Premises, for the purpose of

preparing the Leased Premises for another tenant or prospective tenant.




 




13.5  If

practicable by appointment with the Tenant, at all reasonable hours for the

purpose of showing the Building to prospective purchasers, mortgagees and

prospective mortgagees and prospective ground lessees and lessors.




 




13.6  If

practicable by appointment with the Tenant, at all reasonable hours during the

last twelve (12) months of the Term for the purpose of showing the Leased

Premises to prospective tenants thereof.




 




13.7  The mere

enumeration of any right of the Landlord within this section 13 of the

Agreement shall not be deemed to create an obligation on the part of the

Landlord to exercise any such right unless the Landlord is affirmatively

required to exercise such right elsewhere in this Agreement.




 




23





























 




14 Liabilities and

Insurance Obligations.




 




14.1  The

Tenant shall, at the Tenant’s own expense, purchase before the Commencement

Date, and maintain in full force and effect throughout the Term and any other

period during which the Tenant may have possession of the Leased Premises, the

following types of insurance coverage from financially sound and reputable

insurers, licensed by the State of New Jersey to provide such insurance and

acceptable to the Landlord, in the minimum amounts set forth below, each of

which insurance policies shall be for the benefit of, and shall name the

Landlord, the Landlord’s managing agent and mortgagees and ground lessors known

to the Tenant, if any, of the Building, the Common Facilities, the Property or

any interest therein, their successors and assigns as additional persons

insured, and none of which insurance policies shall contain a “co-insurance”

clause:




 




14.1.1  commercial general liability insurance and excess (“umbrella”)

insurance which, without limiting the generality of the foregoing, considered

together shall insure against such risks as bodily injury, personal injury and

property damage, with a combined single limit of not less than $3,000,000.00

for each occurrence and in the aggregate (or such greater amounts as the

Landlord may reasonably specify from time to time by notice to the Tenant);




 




14.1.2 

contractual liability insurance which shall insure the risk of the

Tenant’s failure to perform all the Tenant’s obligations under this Agreement

by which the Tenant indemnifies the Landlord, in an amount not less than

$3,000,000.00; and




 




14.1.3  “all

risks” insurance covering the Leased Premises and leasehold improvements

thereto in an amount sufficient to cover the replacement cost of all the

Tenant’s alterations, improvements, fixtures and personal property located in

or on the Leased Premises.




 




14.2  With

respect to risks:




 




14.2.1  as to

which this Agreement requires either party to maintain insurance, or




 




14.2.2  as to

which either party is effectively insured and for which risks the other party

may be liable, the party required to maintain such insurance and the party

effectively insured shall use its best efforts to obtain a clause, if available

from the respective insurer, in each such insurance policy expressly waiving

any right of recovery, by reason of subrogation to such party’s rights or

otherwise, the respective insurer might otherwise have or obtain against the

other party, so long as such a clause can be obtained in the respective

insurance policy without additional premium cost. If




 




24





























 




such a clause can be obtained in the respective insurance policy, but

only at additional premium cost, such party shall, by notice to the other

party, promptly advise the other party of such fact and the amount of the

additional premium cost.  If the other

party desires the inclusion of such a clause in the notifying party’s

respective insurance policy, the other party shall, within ten (10) days of

receipt of the notifying party’s notice, by notice advise the notifying party

of its desire and enclose therewith its check in the full amount of the

additional premium cost; otherwise the notifying party need not obtain such a

clause in the respective insurance.




 




14.3  Each

party hereby waives any right of recovery against the other party for any and

all damages for property losses and property damages which are actually insured

by either party, but only to the extent:




 




14.3.1  that

the waiver set forth in this subsection 14.3 does not cause or result in any

cancellation of, or diminution in, the insurance coverage otherwise available

under any applicable insurance policy;




 




14.3.2  of the

proceeds of any applicable insurance policy (without adjustment for any

deductible amount set forth therein) actually received by such party for such

respective loss or damages; and




 




14.3.3  the

substance of the clause contemplated by subsection 14.2 of this Agreement is

actually and effectively set forth in the respective insurance policy.




 




The waiver set forth in this subsection 14.3 of the Agreement shall not

apply with respect to liability insurance policies (as opposed to property and

casualty insurance policies).




 




14.4  The

Tenant hereby waives any right of recovery it might otherwise have against the

Landlord for losses and damages caused in whole or in part, by any of the risks

the Tenant is required to insure against in accordance with subsections 14.1.1

or 14.1.3 of this Agreement, unless such waiver would cause or result in a

cancellation of, or diminution in, the coverage of the Tenant’s policies of

insurance against such risks.




 




14.5  The

Landlord shall have no liability whatsoever to the Tenant or the Tenant’s

employees, other agents or Guests or anyone else for any death, bodily injury,

property loss or other damages suffered by any of them or any of their property

which is not caused directly, exclusively and entirely by the negligence or

intentional misconduct of the Landlord without the intervention or contribution

of any other cause or contributing factor whatsoever.




 




14.6  Each

policy of insurance required under subsection 14.1 of this Agreement shall

include provisions to the effect that:




 




25





























 




14.6.1  no act

or omission of the Tenant, its employees, other agents or Guests shall result

in a loss of insurance coverage otherwise available under such policy to any

person required to be named as an additional insured in accordance with

subsection 14.1 of this Agreement; and




 




14.6.2  the

insurance coverage afforded by such policy shall not be diminished, cancelled,

permitted to expire or otherwise terminated for any reason except upon thirty

(30) days’ prior written notice from the insurer to every person required to be

named as an additional insured in accordance with subsection 14.1 of this

Agreement.




 




14.7  At any

time when the Tenant or its contractors may be building out the Leased Premises

or altering or improving any part of the Building at the Tenant’s instance, the

Tenant shall, at the Tenant’s own expense, purchase before commencing such

work, and maintain in full force and effect until final completion of the

respective work, builders’ risk insurance coverage from financially sound and

reputable insurers, licensed by the State of New Jersey to provide such

insurance and acceptable to the Landlord, which provides replacement cost

coverage in the event any of the work is damaged by a covered peril as defined

in the policy, which insurance policy shall be for the benefit of, and shall

name, the Landlord, the Landlord’s managing agent and mortgagees and ground

lessors known to the Tenant, if any, of the Building, the Common Facilities,

the Property or any interest therein, their successors and assigns as

additional persons insured, and none of which insurance policies shall contain

a “co-insurance” clause.




 




14.8  With

respect to each type of insurance coverage referred to in subsection 14.1 of

this Agreement, prior to the Commencement Date the Tenant shall cause its

insurer(s) to deliver to the Landlord the certificate(s) of the insurer(s)

setting forth the name and address of the insurer, the name and address of each

additional insured, the type of coverage provided, the limits of the coverage,

the effective dates of coverage and that each policy under which coverage is

provided affirmatively includes provisions to the effect set forth in

subsection 14.6 of this Agreement. In the event any of such certificates

indicates a coverage termination date earlier than the end of the Term or the

end of any other period during which the Tenant may have possession of the

Leased Premises, no later than ten (10) days before any such coverage

termination date, the Tenant shall deliver to the Landlord respective,

equivalent, new certificate(s) of the insurer(s).




 




15  Casualty Damage to Building or Leased

Premises.




 




15.1  In the

event of any damage to the Building or any portion thereof by fire or other

casualty, with the result that the Leased Premises are rendered unusable, in

whole or in part, 




 




26





























 




or not reasonably accessible to and from the Building’s Common

Facilities, within thirty (30) business days of the occurrence of the casualty

the Landlord shall determine and give notice of its determination to the Tenant

whether, due to the extent of damage and the Landlord’s analysis of the

economic feasibility of rebuilding or restoring, the Landlord intends not to

rebuild or restore the Building or, if the Landlord shall not have made that

determination, the Landlord’s reasonable opinion of the period of time required

to restore the Building and the Leased Premises to their condition immediately

prior to the occurrence of the respective casualty (exclusive of any

improvements constructed, installed or added in the Leased Premises as

contemplated by sections 5 or 12 of this Agreement).




 




15.1.1  If the

Landlord gives timely notice of its determination that it does not intend to

rebuild or restore, due to the extent of damage and the Landlord’s analysis of

the economic feasibility of rebuilding or restoring, then this Agreement and

the Term shall terminate effective as of the date of the subject casualty with

respect to those portions of the Leased Premises rendered unusable by the

subject casualty and as of the date of the Tenant’s surrender with respect to

those portions of the Leased Premises which were not rendered unusable by the

subject casualty.




 




15.1.2  Otherwise, if, in the Landlord’s reasonable opinion, the

restoration contemplated by subsection 15.1 of this Agreement will take more

than two hundred forty (240) days (inclusive of a reasonable period for

adjustment of the Landlord’s insurance claim, but exclusive of any period for

resort to a formal dispute resolution forum with the insurer), then either the

Landlord or the Tenant may elect to terminate the Term and this Agreement

(effective as of the date of the subject casualty with respect to those

portions of the Leased Premises rendered unusable by the subject casualty and

as of the date of the Tenant’s giving notice with respect to those portions of

the Leased Premises which were not rendered unusable by the subject casualty)

by timely notice of its election to the other. Notice of the Landlord’s

election to terminate, if any, shall be given to the Tenant within the thirty (30)

business day period contemplated by subsection 15.1 of this Agreement. If the

Landlord shall not timely elect to terminate the Term and this Agreement,

notice of the Tenant’s election to terminate, if any, shall be given to the

Landlord within the thirty (30) day period immediately succeeding the

Landlord’s giving notice to the Tenant of the Landlord’s estimated period to

rebuild or restore.




 




15.1.3  If (a)

in the Landlord’s reasonable opinion, the restoration contemplated by

subsection 15.1 of this Agreement will take more than two hundred forty (240)

days (inclusive of a reasonable period for adjustment of the Landlord’s

insurance claim, but exclusive of any period for resort to a formal dispute

resolution forum with the insurer) and neither the Landlord nor the Tenant

shall have timely exercised their respective rights to 




 




27





























 




terminate contemplated by subsection 15.1.2 of this Agreement or (b) in

the Landlord’s reasonable opinion, the restoration contemplated by subsection

15.1 of this Agreement will take two hundred forty (240) days or less

(inclusive of a reasonable period for adjustment of the Landlord’s insurance

claim, but exclusive of any period for resort to a formal dispute resolution

forum with the insurer), then this Agreement shall remain in effect and the

Landlord shall restore the Building and the Leased Premises as contemplated by

subsection 15.1 of this Agreement to the extent the Landlord shall have

received (and no mortgagee of the Property or the Building shall have received)

proceeds of any property, casualty or liability insurance on the damaged

portions, causing the restoration to proceed diligently and expediently. Under

the circumstances contemplated by clause (b) of this subsection 15.1.3 of the

Agreement, if the Landlord shall not have timely restored the Building and the

Leased Premises as contemplated by subsection 15.1 of this Agreement to the

extent the Landlord shall have received proceeds of any property or liability

insurance on the damaged portions, the Term shall terminate upon the expiration

of ninety (90) additional days (without the Landlord’s completion of its

restoration obligation in the interim) after the Tenant shall have given prompt

notice that the Landlord has not completed its restoration obligations on a

timely basis and that the Tenant desires termination of the Term (which

termination shall be effective as of the date of the subject casualty with

respect to those portions of the Leased Premises rendered unusable by the

subject casualty and as of the date of the Tenant’s giving notice with respect

to those portions of the Leased Premises which were not rendered unusable by

the subject casualty).




 




15.2  Under the

circumstances contemplated by subsection 15.1 of this Agreement, Rent shall

abate from the date of the casualty until such time as the Building and the

Leased Premises are again restored by the Landlord as contemplated by

subsection 15.1 of this Agreement by the amount which bears the same proportion

to the Rent otherwise payable during such period as the gross rentable floor

space of the Leased Premises which are rendered unusable or not reasonably

accessible to and from the Common Facilities of the Building bears to the gross

rentable floor space of the Leased Premises.




 




15.3  The

restoration of the improvements constructed or installed in the Leased Premises

as contemplated by sections 5 or 12 of this Agreement shall be the Tenant’s

responsibility. The Tenant shall make reasonable, good faith efforts to integrate

the restoration which is its responsibility with the restoration which is the

Landlord’s responsibility. To the extent such integration is not feasible, the

Tenant shall be allowed an additional, reasonable interval to complete its

work, not to exceed thirty (30) days after the completion of the Landlord’s

restoration work, and Rent shall continue to abate until the earlier of (i) the

expiration of such additional interval or (ii) the completion of the Tenant’s

work, to the same extent 




 




28





























 




contemplated by subsection 15.2. The Landlord shall cooperate with the

Tenant to integrate the restoration of such improvements during the

reconstruction period.




 




15.4  In the

event either the Landlord shall make any election to cancel contemplated by

subsection 15.1.1 of this Agreement or either the Landlord or the Tenant shall

make any election to cancel contemplated by subsection 15.1.2 of this

Agreement, then the Landlord may proceed with restoration (or non–restoration)

in any manner it chooses, without any liability to the Tenant.




 




15.5  The

Tenant shall promptly advise the Landlord by the quickest means of

communication of the occurrence of any casualty damage to the Building or the

Leased Premises of which the Tenant becomes aware.




 




16 Condemnation.




 




16.1  This

section 16 of the Agreement shall apply if the power of eminent domain (or

private purchase by any public or quasi-public body in lieu thereof for any

public or quasi-public purpose) shall be exercised with the result that:




 




16.1.1  all or

substantially all the Property or the Leased Premises is taken during the Term

for at least the balance of the Term;




 




16.1.2  less

than substantially all the Property, the Building or the Common Facilities (but

none of the Leased Premises) is taken during the Term for at least the balance

of the Term, but the Landlord reasonably promptly determines in good faith that

it is not economically feasible for the Landlord to make any necessary

alterations and continue to operate the portions not so taken, as they may be

altered, as a first class Building and facility in the vicinity for the balance

of the Term;




 




16.1.3  less

than substantially all the Leased Premises is taken during the Term for at

least the balance of the Term, but the Tenant reasonably promptly determines in

good faith that it can not continue to use and enjoy the portions not so taken

for the conduct of its business in the ordinary course during the balance of

the Term; or




 




16.1.4  so much

of the Property or the Common Facilities is taken during the Term for at least

the balance of the Term that the Leased Premises are not reasonably accessible

to and from the Common Facilities and reasonable alternate access is not

provided by the Landlord.




 




16.2  Under the

circumstances contemplated by subsections 16.1.1 and subsections 16.1.4 of this

Agreement, then either the Landlord or the Tenant may elect to terminate the

Term by notice 




 




29





























 




to the other given within thirty (30) days after, and effective as of,

the later of the date (i) that the condemnor acquires title to the portions

taken or (ii) that possession of the portions taken is required to be delivered

or surrendered to the condemning authority. Under the circumstances

contemplated by subsection 16.1.2 of this Agreement the Landlord, and under the

circumstances contemplated by subsection 16.1.3 of this Agreement the Tenant,

respectively, may elect to terminate the Term by notice to the other given

within thirty (30) days after, and effective as of, the later of the date (i)

that the condemnor acquires title to the portions taken or (ii) that possession

of the portions taken is required to be delivered or surrendered to the

condemning authority.




 




16.3  Under the

circumstances contemplated by subsection 16.1 of this Agreement, if no party

with any right to elect to terminate the Term under subsection 16.2 of this

Agreement shall have given timely notice to the other of exercise of its

election to terminate the Term, this Agreement shall continue in full force and

effect, but Rent shall abate, effective as of the later of the date (i) that

the condemnor acquires title to the portions taken or (ii) that possession of

the portions taken is required to be delivered or surrendered to the condemning

authority, by the amount which bears the same proportion to the Rent otherwise

payable during any period as the gross rentable floor space, if any, of the

Leased Premises which is taken bears to the gross rentable floor space of the

Leased Premises.




 




16.4  Under any

of the circumstances contemplated by this section 16 of the Agreement, the

Tenant hereby waives any claim against the Landlord, the condemning authority

for any thing of value, tangible or intangible, including, without limiting the

generality of the foregoing, the putative value of any leasehold interest or

the loss of the use of same, except for any right the Tenant might have to make

a claim, independent of, and without reference to or having any effect on, any

claim, award or settlement of the Landlord, against the condemning authority

regarding the value of the Tenant’s installed trade fixtures and other

installed equipment which are not removable from the Leased Premises or for

ordinary and necessary moving and relocation expenses occasioned by the taking.




 




17 Assignment or

Subletting by Tenant.




 




17.1  Except as

may be specifically set forth in this section 17 of the Agreement, the Tenant

shall not:




 




17.1.1  assign,

or purport to assign, this Agreement or any of the Tenant’s rights hereunder;




 




17.1.2  sublet,

or purport to sublet, the Leased Premises or any portion thereof;




 




17.1.3 

license, or purport to license, the use or 




 




30





























 




occupancy of the Leased Premises or any portion thereof;




 




17.1.4 

otherwise transfer, or attempt to transfer any interest including,

without limiting the generality of the foregoing, a mortgage, pledge or

security interest, in this Agreement, the Leased Premises or the right to the

use and occupancy of the Leased Premises; or




 




17.1.5 

indirectly accomplish, or permit or suffer the accomplishment of, any of

the foregoing by merger or consolidation with another entity, by acquisition or

disposition of assets or liabilities outside the ordinary course of the

Tenant’s business or by acquisition or disposition, by the Tenant’s equity

owners or subordinated creditors, of any of their respective interests in the

Tenant.




 




17.2  The

Tenant shall not assign this Agreement or any of the Tenant’s rights hereunder

or sublet the Leased Premises or any portion thereof without first giving

thirty (30) days’ prior notice to the Landlord of its desire to assign or

sublet and requesting the Landlord’s consent and without first receiving the

Landlord’s prior written consent, which consent shall not be unreasonably

withheld or delayed. The Tenant’s notice to the Landlord shall include:




 




17.2.1  the

full name, address and telephone number of the proposed assignee or sublessee;




 




17.2.2  a

description of the type(s) of business in which the proposed assignee or

sublessee is engaged and proposes to engage;




 




17.2.3  a

description of the precise use to which the proposed assignee or sublessee

intends to put the Leased Premises or portion thereof;




 




17.2.4  the

proposed assignee’s or subtenant’s most recent quarterly and annual financial

statements prepared in accordance with generally accepted accounting principles

and any other evidence of financial position and responsibility that the Tenant

or proposed assignee or sublessee may desire to submit;




 




17.2.5  by

diagram and measurement of the actual square feet of floor space, the precise

portion of the Leased Premises proposed to be subject to the assignment of this

Agreement or to be sublet;




 




17.2.6  a

complete, accurate and detailed description of the terms of the proposed

assignment or sublease including, without limiting the generality of the

foregoing, all consideration paid or given, or proposed to be paid or to be

given, by the proposed assignee, sublessee or other person to the Tenant and

the respective times of payment or delivery; and




 




31





























 




17.2.7  any

other information reasonably requested by the Landlord.




 




17.3  By the

expiration of the notice period contemplated by subsection 17.2 of this

Agreement, the Landlord, in its sole discretion, shall take one of the

following actions by notice to the Tenant:




 




17.3.1  grant

consent on the terms and conditions set forth in subsection 17.4 of this

Agreement and such other reasonable terms and conditions set forth in the

Landlord’s notice;




 




17.3.2  refuse

to grant consent for any of the reasons set forth in subsection 17.5 of this

Agreement or for any other reasonable reason set forth in the Landlord’s

notice; or




 




17.3.3  elect

to terminate the Term as of (a) the end of the third full month after the

Tenant has given notice of the Tenant’s desire to assign or sublet or (b) the

proposed effective date of the proposed assignment or sublease.




 




17.4  The

Landlord’s consent to the Tenant’s proposed assignment or sublease, if granted

under subsection 17.3.1 of this Agreement, shall be subject to all the

following terms and conditions (and to any other terms and conditions permitted

by that subsection):




 




17.4.1  any

proposed assignee or sublessee shall, by document executed and delivered

forthwith to the Landlord, agree to be bound by all the obligations of the

Tenant set forth in this Agreement;




 




17.4.2  the

Tenant shall remain liable under this Agreement, jointly and severally with any

proposed assignee or sublessee, for the timely performance of all obligations

of the Tenant set forth in this Agreement;




 




17.4.3  the

Tenant shall forthwith deliver to the Landlord manually executed copies of all

documents regarding the proposed assignment or sublease and a written, accurate

and complete description, manually executed both by the Tenant and the proposed

assignee or sublessee, of any other agreement, arrangement or understanding

between them regarding the same;




 




17.4.4  with

respect to any consideration or other thing of value received or to be received

by the Tenant in connection with any such assignment or sublease (other than

those payable in equal monthly installments each month during the proposed term

of any such assignment or sublease), the Tenant shall pay to the Landlord

one-half of any such amount and one-half of the fair market value of any other

thing of value (net of Transaction Costs in connection with such respective

assignment or sublet) within ten (10) days of receipt of same; and




 




32





























 




17.4.5  with

respect to any amount payable to the Tenant in equal monthly installments each

month during the proposed term of any such assignment or sublease in connection

with such assignment or sublease, which amount is in excess of the amount which

bears the same ratio to the monthly installment of Rent due from the Tenant as

the usable floor space of the Leased Premises subject to the assignment or

sublease bears to the usable floor space of the entire Leased Premises, the

Tenant shall pay one-half of such excess (net of the amount of the balance of

unrecovered Transaction Costs in connection with the respective assignment or

sublet) to the Landlord together with the Tenant’s monthly installment of Rent.




 




17.5  The

Landlord’s refusal to grant consent under subsection 17.3.2 of this Agreement

shall not be deemed an unreasonable withholding of consent if based upon any of

the following reasons (or any other reason permitted by that subsection):




 




17.5.1  the

Landlord desires to take one of the other actions enumerated in subsection 17.3

of this Agreement;




 




17.5.2  there

is already a combination of another two assignees, sublessees or licensees of

all or a portion of the Leased Premises;




 




17.5.3  the

proposed sublease is for a term of less than one year;




 




17.5.4  the

proposed sublease is for a term which would expire after the Term;




 




17.5.5  less

than one year remains in the Term as of the proposed effective date of the

proposed assignment or sublease;




 




17.5.6  the

financial position or ability or type of business of, or the anticipated use of

the Leased Premises by, the proposed assignee or proposed sublessee is

unsatisfactory to the Landlord or is inconsistent with those of tenants of

Other Leased Premises or of the Tower Center Complex or inconsistent with any

commitment made by the Landlord to any such other tenant;




 




17.5.7  the

proposed consideration to be paid to the Tenant during any period of twelve

(12) months is marketed as less than the amount of the Market Rental Rate

divided by the gross rentable floor space of the Leased Premises and multiplied

by that portion of the gross rentable floor space of the Leased Premises

proposed to be subject to the proposed assignment or sublease; or




 




17.5.8  the proposed

assignee or sublessee is a tenant of Other Leased Premises or other premises in

the Building.




 




33





























 




17.6 

Notwithstanding anything to the contrary set forth in section 17 of this

Agreement, the Landlord hereby consents to the Tenant’s assignment of this

Agreement or subletting the Leased Premises or portion thereof specified below

if:




 




17.6.1  at or

prior to the respective dates of exercise and effectiveness thereof (a)(i) no

Event of Default shall have occurred or (ii) if an Event of Default shall have

occurred, the Tenant shall have previously cured it in full or the Landlord

shall have waived it and (b) there shall not have been a History of Recurring

Events of Default; and




 




17.6.2  the

Tenant and the proposed assignee or sublessee comply with all the conditions

set forth in subsections 17.4.1 through 17.4.3 of this Agreement; and




 




17.6.3  one of the following is applicable:




 




17.6.3.1  the

proposed assignee or sublessee is, and continues to be, an Affiliate of the

Tenant, provided that the proposed assignee or sublessee shall also have and

shall continue to have a net worth at least as great as that of the Tenant on

the Commencement Date; or




 




17.6.3.2  the

proposed assignee or sublessee is a person (a) resulting from the merger or

consolidation of the Tenant with or into such person or (b) purchasing

substantially all the assets (subject to substantially all the liabilities) of

the Tenant and succeeding to the business of the Tenant, provided either the Tenant

or the proposed assignee or sublessee shall have and shall continue to have a

net worth at least as great as that of the Tenant on the Commencement Date.




 




17.7  No person other than the Tenant shall have

any assignment or sublet rights under this Agreement.




 




18  Signs, Displays and Advertising.




 




18.1  The

Tenant shall have one sign identifying itself at the principal entrance to the

Leased Premises. The Tenant may also identify itself in or on each of: the

Building directory and the directory, if any, on the floor of the Building on

which the Leased Premises is located. All such signs, and the method and

materials used in mounting and dismounting them, shall be in accordance with

the Landlord’s specifications. All such signs shall be provided and mounted by

the Landlord at the Landlord’s expense, except that the Tenant shall bear any

expense of 




 




34





























 




identifying itself on the sign at the principal entrance to the Leased

Premises.




 




18.2  So long

as the Tenant leases and occupies for the conduct of its own business  at least 53,340 square feet of gross

rentable floor space of the Leased Premises, the Tenant shall have the right to

require the Landlord, at the Tenant’s sole cost and expense, in accordance with

the Landlord’s specifications, to add and maintain the name of the Tenant on

the monument sign located at the entrance to the Property near the access road

leading to the Property.




 




18.3  No other

sign, advertisement, fixture or display shall be used by the Tenant on the

Property or in the Building or the Common Facilities. Any signs other than

those specifically permitted under subsection 18.1 of this Agreement shall be

removed promptly by the Tenant or by the Landlord at the Tenant’s expense.




 




19  Quiet Enjoyment.

The Landlord is the owner of the Building, the Property and those Common

Facilities located on the Property. The Landlord has the right and authority to

enter into and execute and deliver this Agreement with the Tenant. So long as

an Event of Default shall not have occurred, the Tenant shall and may peaceably

and quietly have, hold and enjoy the Leased Premises during the Term in

accordance with this Agreement.




 




20  Relocation. At any

time and from time to time during the Term, on at least sixty (60) days’ prior

notice to the Tenant, the Landlord shall have the right to move the Tenant out

of the Leased Premises and into premises having at least equal floor space on

contiguous floors located in the Building on floors no lower than the twelfth floor

of the Building for the duration of the Term. The executive offices of the

Tenant (consisting of no more than 26,670 square feet of gross rentable floor

space) shall be located on the upper most floor of the substitute leased

premises. In the event the Landlord exercises this right of relocation, the

Landlord shall decorate the new premises similarly to the Leased Premises and

construct and install alterations, modifications and improvements similar to

the alterations, modifications and improvements then existing in the Leased

Premises, including, but not limited to, one set of stairs between the twelfth

and the fourteenth floors of the Building within the Initial Leased Premises,

if any, and remove, relocate and reinstall the Tenant’s furniture, trade fixtures,

furnishings and equipment, all at the sole cost and expense of the Landlord.

When the substitute new premises are ready, the Tenant shall surrender the

Leased Premises. Following any such relocation, this Agreement shall continue

in full force and effect except for the description of the Leased Premises, the

Building and the Property which, upon completion of such relocation, shall be

deemed amended to describe the substitute new premises, building and property,

respectively, to which the Tenant shall have been relocated in accordance with

this section 20 of the Agreement.




 




35





























 




21  Surrender. Upon

termination of the Term, or at any other time at which the Landlord, by virtue

of any provision of this Agreement or otherwise has the right to re-enter and

re-take possession of the Leased Premises, the Tenant shall surrender

possession of the Leased Premises; remove from the Leased Premises all property

owned by the Tenant or anyone else other than the Landlord; remove from the

Leased Premises any alterations, improvements or other modifications to the

Leased Premises that the Landlord may request by notice; make any repairs

required by such removal; clean the Leased Premises; leave the Leased Premises

in as good order and condition as it was upon the completion of any

improvements contemplated by section 5 of this Agreement, ordinary wear and use

excepted; return all copies of all keys and passes to the Leased Premises, the

Common Facilities and the Building to the Landlord; and receive the Landlord’s

written acceptance of the Tenant’s surrender. The Landlord shall not be deemed

to have accepted the Tenant’s surrender of the Leased Premises unless and until

the Landlord shall have executed and delivered the Landlord’s written

acceptance of surrender to the Tenant, which shall not be unreasonably withheld

or delayed.




 




22  Events of Default.

The occurrence of any of the following events shall constitute an Event of

Default under this Agreement:




 




22.1  the

Tenant’s failure to pay any installment of Basic Rent or any amount of

Additional Rent when it is first due (or by the tenth day after the day it is

first due in the case of the first two payments in any period of twelve

consecutive calendar months that are not paid on the day each is respectively

first due);




 




22.2  the

Tenant’s failure to perform any of its obligations under this Agreement if such

failure has caused, or may cause, loss or damage that can not promptly be cured

by subsequent act of the Tenant;




 




22.3  the

Tenant’s failure to complete performance of any of the Tenant’s obligations

under this Agreement (other than those contemplated by subsections 22.1 and

22.2 of this Agreement) within twenty (20) days after the Landlord shall have

given notice to the Tenant specifying which of the Tenant’s obligations has not

been performed and in what respects, unless completion of performance within

such period of twenty (20) days is not possible using diligence and expedience,

then within a reasonable time of the Landlord’s notice so long as the Tenant

shall have commenced substantial performance within the first three (3)

business days of such period of twenty (20) days (which three (3) business day

period shall be extended provided that the Tenant is acting with reasonable

diligence) and shall have continued to provide substantial performance,

diligently and expediently, through to completion of performance;




 




22.4  the

discovery that any representation made by the 




 




36





























 




Tenant in section 30 of this Agreement or in the Tenant’s Certificate

executed and delivered to the Landlord pursuant to subsection 44.8 of this

Agreement shall have been inaccurate or incomplete in any material respect

either on the date it was made or the date as of which it was made;




 




22.5  the sale,

transfer or other disposition of any interest of the Tenant in the Leased

Premises by way of execution or other legal process;




 




22.6  with the

exception of those of the following events to which section 365 of the

Bankruptcy Code shall apply in the context of an office lease (in which case

subsection 22.7 of this Agreement shall apply):




 




22.6.1  the

Tenant’s becoming a “debtor,” as that term is defined in section 101 of the

Bankruptcy Code;




 




22.6.2  any time

when either the value of the Tenant’s liabilities exceed the value of the

Tenant’s assets or the Tenant is unable to pay its obligations as and when they

respectively become due in the ordinary course of business;




 




22.6.3  the

appointment of a receiver or trustee of the Tenant’s property or affairs; or




 




22.6.4  the

Tenant’s making an assignment for the benefit of, or an arrangement with or

among, creditors or filing a petition in insolvency or for reorganization or

for the appointment of a receiver;




 




22.7  in the

event of the occurrence of any of the events enumerated in subsection 22.6 of

this Agreement to which section 365 of the Bankruptcy Code shall apply in the

context of an office lease, the earlier of the bankruptcy trustee’s rejection

or deemed rejection (as those terms are used in section 365 of the Bankruptcy

Code) of this Agreement.




 




23  Rights and Remedies.




 




23.1  Upon the

occurrence of an Event of Default the Landlord shall have all the following

rights and remedies:




 




23.1.1  to

elect to terminate the Term by giving notice of such election, and the

effective date thereof, to the Tenant and to receive Termination Damages;




 




23.1.2  to

elect to re-enter and re-take possession of the Leased Premises, without

thereby terminating the Term, by giving notice of such election, and the

effective date thereof, to the Tenant and to receive Re-Leasing Damages;




 




23.1.3  if the

Tenant remains in possession of the Leased Premises after the Tenant’s

obligation to surrender the 




 




37





























 




Leased Premises shall have arisen, to remove the Tenant and the

Tenant’s and any others’ possessions from the Leased Premises by any of the

following means without any liability to the Tenant therefor, any such

liability to the Tenant therefor which might otherwise arise being hereby

waived by the Tenant: legal proceedings (summary or otherwise), writ of

dispossession and any other means and to receive Holdover Damages and, except

in the circumstances contemplated by section 20 of this Agreement, to receive

all expenses incurred in removing the Tenant and the Tenant’s and any others’

possessions from the Leased Premises, and of storing such possessions if the

Landlord so elects;




 




23.1.4  to be

awarded specific performance, temporary restraints and preliminary and

permanent injunctive relief regarding Events of Default where the Landlord’s

rights and remedies at law may be inadequate, without the necessity of proving

actual damages or the inadequacy of the rights and remedies at law;




 




23.1.5  to

receive all reasonable expenses incurred in securing, preserving, maintaining

and operating the Leased Premises during any period of vacancy, in making

repairs to the Leased Premises, in preparing the Leased Premises for re-leasing

and in re-leasing the Leased Premises including, without limiting the

generality of the foregoing, any brokerage commissions;




 




23.1.6  to

receive all reasonable legal expenses, including without limiting the

generality of the foregoing, reasonable attorneys’ fees incurred in connection

with pursuing any of the Landlord’s rights and remedies, including

indemnification rights and remedies;




 




23.1.7  if the

Landlord, in its sole discretion, elects to perform any obligation of the

Tenant under this Agreement (other than the obligation to pay Rent) which the

Tenant has not timely performed, to receive all expenses incurred in so doing;




 




23.1.8  to

elect to pursue any legal or equitable right and remedy available to the

Landlord under this Agreement or otherwise; and




 




23.1.9  to elect

any combination, or any sequential combination of any of the rights and

remedies set forth in subsection 23.1 of this Agreement.




 




23.2  In the

event the Landlord elects the right and remedy set forth in subsection 23.1.1

of this Agreement, Termination Damages shall be equal to the amount which, at

the time of actual payment thereof to the Landlord, is the sum of:




 




23.2.1  all

accrued but unpaid Rent;




 




23.2.2  the

present value (calculated using the most recently available (at the time of

calculation) published weekly 




 




38





























 




average yield on United States Treasury securities having maturities

comparable to the balance of the then remaining Term) of the sum of all

payments of Rent remaining due (at the time of calculation) until the date the

Term would have expired (had there been no election to terminate it earlier)

less the present value (similarly calculated) of all payments of rent to be

received through the end of the Term (had there been no election to terminate

it earlier) from a lessee, if any, of the Leased Premises at the time of

calculation (and it shall be assumed for purposes of such calculations that (i)

the amount of future Additional Rent due per year under this Agreement will be

equal to the average Additional Rent per month due during the twelve (12) full

calendar months immediately preceding the date of any such calculation,

increasing annually at a rate of seven (7%) percent compounded, (ii) if any

calculation is made before the first anniversary of the end of the No Pass

Through Period, the average Additional Rent due for any month after the end of

the No Pass Through Period will be equal to eight (8%) percent of the sum of

the Base Year Operating Expenses, Base Year Taxes, Net Utilities Expenses,

Annual Amortized Capital Expenditures and Tenant Electric Charges (considered

on an annual basis), (iii) if any calculation is made before the beginning of

the Base Year, the sum of Base Year Taxes and Base Year Operational Expenses

shall be assumed to be $5.00 per gross rentable square foot and (iv) if any

calculation is made before the end of the Base Year, Base Year Taxes and Base

Year Operational Expenses may be extrapolated based on the year to date

experience of the Landlord);




 




23.2.3  the

Landlord’s actual cost of demolishing any leasehold improvements to the Leased

Premises; and




 




23.2.4  that

amount, which as of the occurrence of the Event of Default, bears the same

ratio to the costs, if any, incurred by the Landlord (and not paid by the Tenant)

in building out the Leased Premises in accordance with section 5 of this

Agreement as the number of months remaining in the Term (immediately before the

occurrence of the Event of Default) bears to the number of months in the entire

Term (immediately before the occurrence of the Event of Default).




 




23.3  In the

event the Landlord elects the right and remedy set forth in subsection 23.1.2

of this Agreement, Re-Leasing Damages shall be equal to the Rent less any rent

actually and timely received by the Landlord from any lessee of the Leased

Premises or any portion thereof, payable at the respective times that Rent is

payable under the Agreement plus the cost, if any, to the Landlord of building

out or otherwise preparing the Leased Premises for, and leasing the Leased

Premises to, any such lessee.




 




23.4  In the

event the Landlord elects the right and remedy set forth in subsection 23.1.3

of this Agreement, Holdover Damages shall mean damages at the rate per month or

part thereof equal to the greater of: (a) one and one-half times one-twelfth 




 




39





























 




(1/12) of the then Market Rental Rate plus all Additional Rent as set

forth in this Agreement or (b) double the average amount of all payments of

Rent due under this Agreement during each of the last twelve (12) full calendar

months prior to the Landlord’s so electing or, in the event the Term shall have

terminated by expiration under subsection 24.1.1 of this Agreement, the last

full twelve (12) calendar months of the Term, in either case payable in full on

the first day of each holdover month or part thereof.




 




23.5  In

connection with any summary proceeding to dispossess and remove the Tenant from

the Leased Premises under subsection 23.1.3 of this Agreement, the Tenant

hereby waives:




 




23.5.1  any

notices for delivery of possession thereof, of termination, of demand for

removal therefrom, of the cause therefor, to cease, to quit and all other

notices that might otherwise be required pursuant to 2A N.J.S.A. 18-53 et seq.;




 




23.5.2  any

right the Tenant might otherwise have to cause a termination of the action or

proceeding by paying to the Landlord or into court or otherwise any Rent in

arrears more than twice during the Term; and




 




23.5.3  any

right the Tenant might otherwise have to redeem the Tenant’s former leasehold

interest between the entry of any judgment and the execution of any warrant

issued in connection therewith by paying to the Landlord or into Court or

otherwise any Rent in arrears more than twice during the Term.




 




23.6  The

enumeration of rights and remedies in this section 23 of the Agreement is not

intended to be exhaustive or exclusive of any rights and remedies which might

otherwise be available to the Landlord, or to force an election of one or more

rights and remedies to the exclusion of others, concurrently, consecutively or

sequentially. On the contrary, each right and remedy enumerated in this section

23 of the Agreement is intended to be cumulative with each other right and

remedy enumerated in this section 23 of the Agreement and with each other right

and remedy that might otherwise be available to the Landlord; and the selection

of one or more of such rights and remedies at any time shall not be deemed to

prevent resort to one or more others of such rights and remedies at the same

time or a subsequent time, even with regard to the same occurrence sought to be

remedied.




 




23.7  The

Landlord shall use reasonable efforts to mitigate damages.




 




24  Termination of the Term.




 




24.1  The Term

shall terminate upon the earliest of the following events to occur:




 




24.1.1  expiration of the Term;




 




40





























 




24.1.2  in

connection with a transaction contemplated by section 16 of this Agreement and

under the circumstances contemplated by subsection 16.2 of this Agreement, the

effective date of termination of the Term as set forth in subsection 16.2;




 




24.1.3  upon

the respective effective dates of termination set forth in the various

subsections (whichever may be applicable) of subsection 15.1 of this Agreement

providing for termination of the Term under various circumstances;




 




24.1.4  the

effective date of any election by the Landlord under subsection 17.3.3 of this

Agreement in response to the Tenant’s notice of the Tenant’s desire to assign

this Agreement or to sublet all or a portion of the Leased Premises; or




 




24.1.5  the

effective date of any election by the Landlord to terminate the Term under

subsection 23.1.1 of this Agreement.




 




24.2  No

termination of the Term shall have the effect of releasing the Tenant from any

obligation or liability theretofore or thereby incurred and, until the Tenant

shall have surrendered the Leased Premises in accordance with section 21 of

this Agreement, from any obligation or liability thereafter incurred.




 




25  Mortgage and Underlying Lease Priority.

This Agreement and the estate, interest and rights hereby created for the

benefit of the Tenant are, and shall always be, subordinate to any mortgage

(other than a mortgage created by the Tenant or a sale, transfer or other

disposition by the Tenant in the nature of a security interest in violation of

subsections 17.1.4 and 22.5, respectively, of this Agreement) afterwards placed

on the Property, the Common Facilities, the Building or any estate or interest

therein including, without limiting the generality of the foregoing, any new

mortgage or any mortgage extension, renewal, modification, consolidation,

replacement, supplement or substitution. This Agreement and the estate,

interest and rights hereby created for the benefit of the Tenant are, and shall

always be, subordinate to any ground lease afterwards made with regard to the

Property, the Common Facilities, the Building or any estate or interest therein

including, without limiting the generality of the foregoing, any new ground

lease or any ground lease extension, renewal, modification, consolidation,

replacement, supplement or substitution. The provisions of this section 25 of

the Agreement shall be self-effecting; and no further instrument shall be

necessary to effect any such subordination. Nevertheless, the Tenant hereby

consents that any mortgagee or mortgagee’s successor in interest may, at any

time and from time to time, by notice to the Tenant, subordinate its mortgage

to the estate and interest created by this Agreement; and upon the giving of

such notice, the subject mortgage shall be deemed subordinate to the estate and

interest created by this Agreement regardless of the respective times of

execution or delivery of either or of 




 




41





























 




recording the subject mortgage.




 




26  Transfer by Landlord.




 




26.1  The

Landlord shall have the right at any time and from time to time to sell,

transfer, lease or otherwise dispose of the Property, the Common Facilities or

the Building or any of the Landlord’s interests therein, or to assign this

Agreement or any of the Landlord’s rights thereunder.




 




26.2  Upon

giving notice of the occurrence of any transaction contemplated by subsection

26.1 of this Agreement, the Landlord shall thereby be relieved of any

obligation that might otherwise exist under this Agreement with respect to

periods subsequent to the effective date of any such transaction. If, in

connection with any transaction contemplated by subsection 26.1 of this

Agreement the Landlord transfers, or makes allowance for, any Security Deposit

of the Tenant and gives notice of that fact to the Tenant, the Landlord shall

thereby be relieved of any further obligation to the Tenant with regard to any

such Security Deposit; and the Tenant shall look solely to the transferee with

respect to any such Security Deposit.




 




26.3  In the

event of the occurrence of any transaction contemplated by subsection 26.1 of

this Agreement the Tenant, upon written request therefor from the transferee,

shall attorn to and become the tenant of such transferee upon the terms and

conditions set forth in this Agreement.




 




26.4 

Notwithstanding anything to the contrary that may be set forth in

subsections 26.1, 26.2 and 26.3 of this Agreement, in the event any mortgage

contemplated by section 25 of this Agreement is enforced by the respective

mortgagee pursuant to remedies provided in the mortgage or otherwise provided

by law or equity and any person succeeds to the interest of the Landlord as a

result of, or in connection with, any such enforcement, the Tenant shall, upon

the request of such successor in interest, automatically attorn to and become

the Tenant of such successor in interest without any change in the terms or

provisions of this Agreement, except that such successor in interest shall not

be bound by: (a) any payment of Basic Rent or Additional Rent (exclusive of

prepayments in the nature of a Security Deposit) for more than one month in

advance or (b) any amendment or other modification of this Agreement which was

made without the consent of such mortgagee; and, upon the request of such

successor in interest, the Tenant shall execute, acknowledge and deliver any

instrument(s) confirming such attornment.




 




26.5  If this

Agreement and the estate, interest and rights hereby created for the benefit of

the Tenant are ever subject and subordinate to any ground lease contemplated by

section 25 of this Agreement:




 




26.5.1  upon

the expiration or earlier termination of 




 




42





























 




the term of any such ground lease before the termination of the Term

under this Agreement, the Tenant shall attorn to, and become the Tenant of, the

lessor under any such ground lease and recognize such lessor as the Landlord

under this Agreement for the balance of the Term; and




 




26.5.2  such

expiration or earlier termination of the term of any such ground lease shall

have no effect on the Term under this Agreement.




 




26.6 

Notwithstanding anything to the contrary that may be set forth in

section 25 of this Agreement, with respect to any mortgages or ground leases

contemplated by section 25 of this Agreement, subordination, as contemplated by

section 25 of this Agreement, shall be conditional upon each such mortgagee and

ground lessor tendering to the Tenant its respective standard form of

non-disturbance, attornment and subordination agreement which includes a

provision to the effect that, in the event of enforcement of any remedies

provided in the respective mortgage or ground lease, respectively, or

otherwise, so long as no Event of Default shall not have occurred which has not

been cured in full by the Tenant, the Tenant shall not be disturbed in its

possession of the Leased Premises in accordance with this Agreement and which

does not include any provision increasing the Tenant’s obligations otherwise

due, or diminishing the Tenant’s rights otherwise available, in either case in

accordance with this Agreement. Any processing or other fee that the mortgagee

or ground lessor may charge and any reasonable legal expense that the Landlord

may incur in connection with performing its obligations under this subsection

shall be paid by the Tenant.




 




27  Indemnification.




 




27.1  The

Tenant shall, and hereby does, indemnify the Landlord against any and all

liabilities, obligations, damages, penalties, claims, costs, charges and

expenses including, without limiting the generality of the foregoing,

reasonable expenses of investigation, defense and enforcement thereof or of the

obligation set forth in this section 27 of the Agreement including, without

limiting the generality of the foregoing, reasonable attorneys’ fees, imposed

on or incurred by the Landlord in connection with any of the following matters

which occurs during the Term:




 




27.1.1  any

matter, cause or thing arising out of the use, occupancy, control or management

of the Leased Premises or any portion thereof which is not caused by the

Landlord’s negligence or intentional act;




 




27.1.2  any

negligence or intentional act on the part of the Tenant or any of its

employees, other agents or Guests;




 




27.1.3  any

accident, injury or damage to any person or property occurring in or about the

Leased Premises which is not caused by the Landlord’s negligence or intentional

act;




 




43





























 




27.1.4  any

representation made by the Tenant in this Agreement or the Tenant’s Certificate

executed and delivered to the Landlord pursuant to subsection 44.8 of this

Agreement shall have been inaccurate or incomplete in any material respect

either on the date it was made or the date as of which it was made;




 




27.1.5  the

imposition of any mechanic’s, materialman’s or other lien on the Property, the

Common Facilities, the Building, the Leased Premises or any portion of any of

the foregoing, or the filing of any notice of intention to obtain any such

lien, in connection with any alteration, improvement or other modification of

the Leased Premises made or authorized by the Tenant, except any such

alteration, improvement or other modification constructed or installed by the

Landlord’s contractor (which indemnification obligation shall be deemed to

include the Tenant’s obligations set forth in subsection 12.2.4.3 of this

Agreement); or




 




27.1.6  any

failure on the part of the Tenant to perform or comply with any obligation of

the Tenant set forth in this Agreement.




 




27.2  Payment

of indemnification claims by the Tenant to the Landlord shall be due upon the

Landlord’s giving notice thereof to the Tenant together with proof of the cost

thereof.




 




27.3  The

Landlord shall promptly give notice of any claim asserted, or action or

proceeding commenced, against it as to which it intends to claim

indemnification from the Tenant and, upon notice from the Tenant so requesting,

shall forward to the Tenant copies of all claim or litigation documents

received by it. Upon receipt of such notice the Tenant may, by notice to the

Landlord, participate therein and, to the extent it may desire, assume the

defense thereof through independent counsel selected by the Tenant and

reasonably satisfactory to the Landlord (counsel appointed by the Tenant’s

insurer shall be deemed to be acceptable to the Landlord). The Landlord shall

not be bound by any compromise or settlement of any such claim, action or proceeding

without its prior written consent.




 




28  Parties’ Liability.




 




28.1  None of

the following occurrences shall constitute a breach of this Agreement by the

Landlord, a termination of the Term, an active or constructive eviction or an

occurrence requiring an abatement of Rent:




 




28.1.1  the

inability of the Landlord to provide any utility or service to be provided by

the Landlord, as described in section 8 of this Agreement which is due to

causes beyond the Landlord’s control, or to necessary or advisable

improvements, maintenance, repairs or emergency, so long as the Landlord uses

reasonable efforts and diligence under the circumstances to 




 




44





























 




restore the interrupted service or utility;




 




28.1.2  any

improvement, modification, alteration or other change made to the Tower Center

Complex, the Property, the Building or the Common Facilities by the Landlord

consistently with the Landlord’s obligations set forth in subsection 13.2 of

this Agreement; and




 




28.1.3  any

change in any Federal, state or local law or ordinance.




 




28.2  Except

for the commencement, duration or termination of the Term (other than under the

circumstances contemplated by subsection 15.1 of this Agreement), the Tenant’s

obligation to make timely payments of Rent, the Tenant’s obligation to maintain

certain insurance coverage in effect, the Tenant’s failure to perform any of

its other obligations under this Agreement if such failure has caused loss or

damage that can not promptly be cured by subsequent act of the Tenant and the

period within which any type of option or optional right exercisable by the

Tenant must be exercised, any period of time during which the Landlord or the

Tenant is prevented from performing any of its respective obligations under

this Agreement because of fire, any other casualty or catastrophe, strikes,

lockouts, civil commotion, acts of God or the public enemy, governmental

prohibitions or preemptions, embargoes or inability to obtain labor or material

due to shortage, governmental regulation or prohibition or any other cause

beyond the Landlord’s control, shall be added to the time when such performance

is otherwise required under this Agreement.




 




28.3  In the

event the Landlord is an individual, partnership, joint venture, association or

a participant in a joint tenancy or tenancy in common, the Landlord, the

partners, venturers, members and joint owners shall not have any personal

liability or obligation under or in connection with this Agreement or the

Tenant’s use and occupancy of the Leased Premises; but recourse shall be

limited exclusively to the Landlord’s interest in the Building.




 




28.4  If, at

any time during the Term, the payment or collection of any Rent otherwise due

under this Agreement shall be limited, frozen or otherwise subjected to a

moratorium by applicable law, and such limitation, freeze or other moratorium

shall subsequently be lifted, whether before or after the termination of the

Term, such aggregate amount of Rent as shall not have been paid or collected

during the Term on account of any such limitation, freeze or other moratorium,

shall thereupon be due and payable at once as allowed by law. There shall be

added to the maximum period of any otherwise applicable statute of limitation

the entire period during which any such limitation, freeze or other moratorium

shall have been in effect.




 




28.5  If this

Agreement is executed by more than one person as the Tenant, their liability

under this Agreement and in 




 




45





























 




connection with the use and occupancy of the Leased Premises shall be

joint and several.




 




28.6  In the

event any rate of interest, or other charge in the nature of interest,

calculated as set forth in this Agreement would lead to the imposition of a

rate of interest in excess of the maximum rate permitted by applicable usury

law, only the maximum rate permitted shall be charged and collected.




 




28.7  The rule

of construction that any ambiguities that may be contained in any contract

shall be construed against the party drafting the contract shall be

inapplicable in construing this Agreement.




 




29 Security Deposit.




 




29.1  The

Tenant shall pay to the Landlord upon execution and delivery of this Agreement

the sum of $1,280,160.00  as a security deposit, in the form of a

letter of credit as described in subsection 29.2 of this Agreement, to be held

by the Landlord as security for the Tenant’s performance of all the Tenant’s

obligations under this Agreement. The Tenant shall not encumber the Security

Deposit. If there has been no Event of Default, within thirty (30) days after

termination of the Term the Landlord shall return the entire balance of the

Security Deposit to the Tenant. The Tenant will not look to any foreclosing

mortgagee of the Property, the Building, the Common Facilities or any interest

therein for such return of the balance of the Security Deposit, unless the

mortgagee has expressly assumed the Landlord’s obligations under this Agreement

or has actually received the balance of the Security Deposit.




 




29.2  The

Security Deposit contemplated by subsection 29.1 of this Agreement shall be in

the form of an irrevocable letter of credit in the amount of the Security

Deposit for the benefit of the Landlord, draws upon which are conditioned only

on the Landlord’s certification of the occurrence of an Event of Default that,

at the time of the draw, shall not have been cured in full by the Tenant.  The letter of credit shall be issued by a

reputable commercial bank operating in the United States reasonably

satisfactory to the Landlord.  The

letter of credit shall be held by the Landlord as a Security Deposit for the

Tenant’s performance of all the Tenant’s obligations under this Agreement. The

Landlord, in its sole discretion, may draw upon the Security Deposit to cure

any Event of Default under this Agreement. 

If any such application is made, upon notice by the Landlord to the

Tenant, the Tenant shall promptly replace the amount so applied in the form of

an additional letter of credit with otherwise similar terms.  The letter of credit shall be for a term

equal to the Term or, if the issuer of the letter of credit regularly and

customarily only issues letters of credit for shorter terms, for the longest of

such shorter regular and customary terms, but in no event for a term shorter

than one year.  If the letter of credit

is issued for a term shorter than the Term, the Tenant shall obtain and deliver

to the Landlord a 




 




46





























 




renewal letter of credit for a term equal to the shorter of (i) the

balance of the Term or (ii) the longest of the issuer’s regular and customary

terms, no later than 30 days prior to expiration of the term of the then

current letter of credit.  If the Tenant

shall fail to obtain and deliver to the Landlord on a timely basis any such

conforming renewal letter of credit, the Landlord shall have the right to draw

100% of the then current letter of credit and hold the proceeds as a cash

Security Deposit in accordance with subsection 29.1 of this Agreement.




 




30  Representations.

The Tenant hereby represents and warrants that:




 




30.1  no broker

or other agent has shown the Leased Premises or the Building to the Tenant, or

brought either to the Tenant’s attention, except Newmark JGT of New Jersey, LLC,

whose entire commission therefor is set forth in a separate document and which

commission the Tenant understands will be paid by the Landlord directly to the

person named;




 




30.2  the

execution and delivery of, the consummation of the transactions contemplated by

and the performance of all its obligations under, this Agreement by the Tenant

have been duly and validly authorized by its general partners, to the extent

required by their partnership agreement and applicable law, if the Tenant is a

partnership or, if the Tenant is a limited liability company, by its

representative(s) and members to the extent required by their operating

agreement and applicable law or, if the Tenant is a corporation, by its board

of directors and, if necessary, by its stockholders at meetings duly called and

held on proper notice for that purpose at which there were respective quorums

present and voting throughout; and no other approval, partnership, corporate,

governmental or otherwise, is required to authorize any of the foregoing or to

give effect to the Tenant’s execution and delivery of this Agreement; and




 




30.3  the

execution and delivery of, the consummation of the transactions contemplated by

and the performance of all its obligations under, this Agreement by the Tenant

will not result in a breach or violation of, or constitute a default under, the

provisions of any statute, charter, certificate of incorporation or bylaws or

partnership agreement of the Tenant or any affiliate of the Tenant, as

presently in effect, or any indenture, mortgage, lease, deed of trust, other

agreement, instrument, franchise, permit, license, decree, order, notice,

judgment, rule or order to or of which the Tenant or any affiliate of the

Tenant is a party, a subject or a recipient or by which the Tenant, any

affiliate of the Tenant or any of their respective properties and other assets

is bound, except the Tenant’s Current Lease.




 




31  Reservation in Favor of Tenant .  Neither the Landlord’s forwarding a copy of

this document to any prospective tenant nor any other act on the part of the

Landlord prior to execution and delivery of this Agreement by the Landlord

shall give rise to any 




 




47





























 




implication that any prospective tenant has a reservation, an option to

lease or an outstanding offer to lease any premises.




 




32  Tenant’s Certificates and Mortgagee

Notice Requirements.




 




32.1  Promptly

upon request of the Landlord at any time or from time to time, but in no event

more than fifteen (15) days after the Landlord’s respective request, the Tenant

shall execute, acknowledge and deliver to the Landlord or its designee an

estoppel or other certificate, satisfactory in form and substance to the

Landlord and any of its mortgagees, ground lessors or lessees or transferees or

prospective mortgagees, ground lessors or lessees or transferees, with respect

to any of or all the following matters:




 




32.1.1  whether

this Agreement is then in full force and effect;




 




32.1.2  whether

this Agreement has not been amended, modified, superseded, canceled, repudiated

or revoked;




 




32.1.3  whether

the Landlord has satisfactorily completed all construction work, if any,

required of the Landlord or contractors selected and retained by the Landlord

in connection with readying the Leased Premises for occupancy by the Tenant in

accordance with section 5 of this Agreement;




 




32.1.4  whether

the Tenant is then in actual possession of the Leased Premises;




 




32.1.5  whether

the Tenant then has no defenses or counterclaims under this Agreement or

otherwise against the Landlord or with respect to the Leased Premises;




 




32.1.6  whether

the Landlord is not then in breach of this Agreement in any respect;




 




32.1.7  whether

the Tenant then has no knowledge of any assignment of this Agreement, the pledging

or granting of any security interest in this Agreement or in Rent due and to

become due under this Agreement;




 




32.1.8  whether

Rent is not then accruing under this Agreement in accordance with its terms;




 




32.1.9  whether

any Rent is not then in arrears;




 




32.1.10 

whether Rent due or to become due under this Agreement has not been

prepaid by more than one month;




 




32.1.11  if the

response to any of the foregoing matters is in the negative, a specification of

all the precise reasons that necessitated the negative response in each

instance; and




 




48





























 




32.1.12  any

other matter reasonably requested by the Landlord or any of its mortgagees,

ground lessors or lessees or transferees or prospective mortgagees, ground

lessors or lessees or transferees, including, without limiting the generality

of the foregoing, such information as the Landlord may request for purposes of

assuring compliance with the Industrial Site Recovery Act (13 N.J.S.A. 1K-6 et

seq.), as it may be amended, and any other applicable Federal, state or

local statute, ordinance, rule, regulation or order concerned with

environmental matters.




 




32.2  If, in

connection with the Landlord’s or a prospective transferee’s obtaining

financing or refinancing of the Property, the Building, the Common Facilities,

any portion thereof or any interest therein, the Landlord or a prospective

lender shall so request, the Tenant shall furnish to the requesting party

within fifteen (15) days of the request:




 




32.2.1  its

written consent to any requested modifications of this Agreement provided that,

in each such instance, the requested modification does not increase the Rent

otherwise due or, in the reasonable judgment of the Tenant, otherwise

materially increase the obligations of the Tenant under this Agreement or

materially adversely affect the Tenant’s leasehold interest created hereby or

the Tenant’s use and enjoyment of the Leased Premises (except in the

circumstances contemplated by section 16 of this Agreement); and




 




32.2.2  summary

financial information regarding its financial position as of the close of its

most recently completed fiscal year and its most recently completed interim

fiscal period and regarding its results of operations for the periods then

ended and comparable year earlier periods, certified by the Tenant’s chief

financial officer to be a complete, accurate and fair presentation of the

summary financial information purporting to be set forth therein.




 




32.3  If the

Landlord or any of its mortgagees gives notice to the Tenant of any of their

respective names and addresses from time to time, the Tenant shall give notice

to each such mortgagee of any notice of breach or default previously or

afterwards given by the Tenant to the Landlord under this Agreement and provide

in such notice that if the Landlord has not cured such breach or default within

any permissible cure period then such mortgagee shall have the greater of (a)

an additional period of thirty (30) days or (b) if such default cannot practically

be cured within such period, such additional period as is reasonable under the

circumstances, within which to cure such default. Upon request of the Landlord

at any time or from time to time, the Tenant shall execute, acknowledge and

deliver to the Landlord or its designee an acknowledgment of receipt of any

such notice, an acknowledgment of receipt of any notice of assignment of this

Agreement or rights hereunder by the Landlord to any of its mortgagees and the

Tenant’s agreement to the foregoing effect on the respective forms, if any,

furnished by the Landlord or the 




 




49





























 




respective mortgagees.




 




32.4  Promptly

upon request of the Tenant at any time or from time to time, but in no event

more than fifteen (15) days after the Tenant’s respective request, the Landlord

shall execute, acknowledge and deliver to the Tenant or its designee an

estoppel or other certificate, satisfactory in form and substance to the Tenant

and any of its assignees or sublessees or prospective assignees or sublessees,

with respect to any or all of the following matters:




 




32.4.1  whether

this Agreement is then in full force and effect;




 




32.4.2  whether

this Agreement has not been amended, modified, superseded, canceled, repudiated

or revoked;




 




32.4.3  whether

the Tenant is then in actual possession of the Leased Premises;




 




32.4.4  whether

the Tenant is not then in breach of this Agreement in any respect;




 




32.4.5  whether

Rent is not then accruing under this Agreement in accordance with its terms;




 




32.4.6 whether any Rent is not then in arrears;




 




32.4.7  whether

Rent due or to become due under this Agreement has not been prepaid by more

than one month;




 




32.4.8  if the

response to any of the foregoing matters is in the negative, a specification of

all the precise reasons that necessitated the negative response in each

instance; and




 




32.4.9  any

other matter reasonably requested by the Tenant or any of its assignees or

sublessees or prospective assignees or sublessees, including, without limiting

the generality of the foregoing, such information as the Tenant may request for

purposes of assuring compliance with the Industrial Site Recovery Act (13

N.J.S.A. 1K-6 et seq.), as it may be amended, and any other applicable

Federal, state or local statute, ordinance, rule, regulation or order concerned

with environmental matters.




 




33  Appraisal, Waiver of Jury Trial and

Arbitration.




 




33.1  If the

Landlord and the Tenant are unable, at any time of reference, to agree on the

Market Rental Rate whenever a determination of the Market Rental Rate is

required under this Agreement (other than in the context of Holdover Damages),

within 15 days after this appraisal procedure is invoked by either party, each

shall appoint one qualified appraiser of its choice which two appraisers shall

then together choose a third qualified 




 




50





























 




appraiser within 10 days after their appointment. Within 20 days after

the appointment of the third appraiser, each of the three appraisers shall

submit his or her opinion of the Market Rental Rate, as defined in, and at the

time specified by, the definition of Market Rental Rate set forth in Exhibit E

attached hereto, by notice to the Landlord and the Tenant. The Market Rental

Rate shall be the arithmetic mean of the two closest appraisers’ opinions,

unless the absolute difference between the middle opinion and the highest and

lowest opinion, respectively, is equal, in which case the middle opinion shall

be the Market Rental Rate. Any determination of the Market Rental Rate in

accordance with this subsection 33.1 of the Agreement shall be final and

binding on, and not appealable by, the Landlord and the Tenant with respect to

the respective instance in which the appraisal procedure was invoked. An

appraiser shall be qualified, as that phrase is used in this subsection 33.1 of

the Agreement, if he is independent, a member in good standing of the Appraisal

Institute (successor to the American Institute of Real Estate Appraisers), has

substantial prior experience appraising the market rental values of leased

offices in office buildings located in Middlesex County, New Jersey and is not

named in subsection 30.1 of this Agreement. The expense of the third appraiser

shall be borne equally by the Landlord and the Tenant; otherwise each party

shall bear the expense of its respective appraiser.




 




33.2  The

parties hereby waive any right they might otherwise have to a trial by jury in

connection with any dispute arising out of or in connection with this Agreement

or the use and occupancy of the Leased Premises; and, except as otherwise set

forth in subsection 33.1 of this Agreement, they hereby consent to arbitration

of any such dispute in East Brunswick, New Jersey, in accordance with the rules

for commercial arbitration of the American Arbitration Association or successor

organization, except that the Landlord or the Tenant, each in its respective

sole discretion, may, with respect to any dispute involving either (i) the

Landlord’s right to re-enter and re-take possession of the Leased Premises or

(ii) the determination of money damages following the occurrence of an Event of

Default under this Agreement, elect to pursue any of or all its rights in any

court of competent jurisdiction. Judgment upon any arbitration award may be

entered in any court of competent jurisdiction.




 




34  Severability. In

the event that any provision of this Agreement, or the application of any

provision in any instance, shall be conclusively determined by a court of

competent jurisdiction to be illegal, invalid or otherwise unenforceable, such

determination shall not affect the validity or enforceability of the balance of

this Agreement.




 




35  Notices. All

notices contemplated by, permitted or required by this Agreement shall be in writing.

All notices required by this Agreement shall be personally delivered or

forwarded by certified mail—return receipt requested, addressed to the intended

party 




 




51





























 




at its address first set forth above (adding, in the case of notices to

the Landlord after the Commencement Date, “Attention: Lease Administration”)

or, in the case of notices to the Tenant during the Term or any other period

during which the Tenant shall be in possession of the Leased Premises, at the

Leased Premises. Either party may from time to time change the address

prescribed in this Agreement for notices to it by notice to the other. All

notices required under this Agreement shall be deemed given upon their deposit,

properly addressed and postage prepaid, in a postal depository or upon personal

delivery to the intended party, regardless of whether delivery shall be

refused.




 




36  Captions. Captions

have been inserted at the beginning of each section of this Agreement for

convenience of reference only and such captions shall not affect the

construction or interpretation of any such section of this Agreement.




 




37  Counterparts. This

Agreement may be executed in more than one counterpart, each of which shall

constitute an original of this Agreement but all of which, taken together,

shall constitute one and the same Agreement.




 




38  Applicable Law.

This Agreement and the obligations of the parties hereunder shall be governed

by and construed in accordance with the laws of the State of New Jersey.




 




39  Exclusive Benefit.

Except as may be otherwise specifically set forth in this Agreement, this

Agreement is made exclusively for the benefit of the parties hereto and their

permitted assignees and no one else shall be entitled to any right, remedy or

claim by reason of any provision of this Agreement.




 




40  Successors. This

Agreement shall be binding upon the parties hereto and their respective

successors and assigns.




 




41  Amendments. This

Agreement contains the entire agreement of the parties hereto, subsumes all

prior discussions and negotiations and, except as may otherwise be specifically

set forth in this Agreement, this Agreement may not be amended or otherwise

modified except by a writing signed by all the parties to this Agreement.




 




42  Waiver. Except as

may otherwise be specifically set forth in this Agreement, the failure of any

party at any time or times to require performance of any provision of this

Agreement shall in no manner affect the right at a later time to enforce the

same. No waiver by any party of any condition, or of the breach of any term,

covenant, representation or warranty set forth in this Agreement, whether by

conduct or otherwise, in any one or more instances shall be deemed to be or

construed as a further or continuing waiver of any such condition or breach, or

as a waiver of any other condition or of the breach of any other term,

covenant, representation or warranty set forth in this Agreement. The

Landlord’s acceptance of, or endorsement on, any partial 




 




52





























 




payment of Rent or any late payment of Rent from the Tenant shall not

operate as a waiver of the Landlord’s right to the balance of the Rent due on a

timely basis regardless of any writing to the contrary on, or accompanying, the

Tenant’s partial payment or the Landlord’s putative acquiescence therein.




 




43  Course of Performance.

No course of dealing or performance by the parties, or any of them, shall be

admissible for the purpose of obtaining an interpretation or construction of

this Agreement at variance with the express language of the Agreement itself.




 




44  Landlord’s Concessions.




 




44.1 

Notwithstanding anything to the contrary that may be set forth in

section 5 of this Agreement, if (a)(i) no Event of Default shall have occurred

or (ii) if an Event of Default shall have occurred, the Tenant shall have

previously cured it in full or the Landlord shall have waived it and (b) if

there shall not have been a History of Recurring Events of Default, the

Landlord shall (a) credit against any amount otherwise due to the Landlord from

the Tenant as contemplated by section 5 of this Agreement, including, but not

limited to, the Landlord’s price to perform the Tenant’s Buildout, an amount

equal to the lesser of: (i) $1,333,500.00, or (ii) such amount as is otherwise

due to the Landlord from the Tenant as contemplated by section 5 of this

Agreement, including, but not limited to, the Landlord’s price to perform the

Tenant’s Buildout, and (b) reimburse the Tenant, in accordance with this

subsection 44.1, for payments made by the Tenant to its architect for the

reasonable cost of architectural services related to the Tenant’s alterations,

improvements or other modifications to the Leased Premises in accordance with

section 5 of this Agreement in an amount equal to the lesser of: (i) the

balance of $1,333,500.00, if any, remaining after application of the credit

contemplated in (a) above, or (ii) the amount paid by the Tenant to its

architect for the reasonable cost of architectural services related to the

Tenant’s alterations, improvements or other modifications to the Leased

Premises in accordance with section 5 of this Agreement, which amount (the

total of (a) and (b) above), net of the Landlord’s fee contemplated by section

5 of this Agreement, is the “Landlord’s Contribution”.  If the total amount of the Tenant’s

architect’s reasonable contract price and the Landlord’s price to perform the

Tenant’s Buildout is less than or equal to the Landlord’s Contribution, the

Landlord shall pay one hundred percent of each of said architect’s invoices and

the Landlord’s general contractor’s invoices for the construction of the

Tenant’s Buildout. If the total amount of the Tenant’s architect’s reasonable

contract price and the Landlord’s price to perform the Tenant’s Buildout is

more than the Landlord’s Contribution, the Landlord shall promptly deliver a

complete copy of each invoice of the general contractor to the Tenant and the

Tenant shall promptly deliver a complete copy of each invoice of the Tenant’s

architect to the Landlord, as the case may be, and the Landlord shall credit

and fund payment of that amount of each 




 




53





























 




such invoice which bears the same ratio to the total amount of the

respective invoice as the Landlord’s Contribution payable to the Tenant’s

architect or the general contractor, as the case may be, bears to the total

amount of the Tenant’s architect’s contract price and the Landlord’s price to

perform the Tenant’s Buildout; and at the same time, the Tenant shall fund

payment of the balance of the respective invoice by paying such balance to the

Landlord within five (5) business days after the delivery of the copy of the

respective invoice to the Tenant.




 




44.2 

Notwithstanding anything to the contrary that may be set forth in

section 5 of this Agreement, (a) (i) if no Event of Default shall have occurred

or (ii) if any Event of Default shall have occurred, the Tenant shall have

previously cured it in full and the Landlord shall have waived it and (b) if

there shall not have been a History of Recurring Events of Default, the Tenant

may require, by delivery of written notice to the Landlord within sixty (60)

days after the Commencement Date, that the Landlord finance the reasonable cost

to the Tenant of moving its furniture, fixtures and equipment from its current

leased premises located at 70 Wood Avenue South, Iselin, New Jersey to the

Leased Premises and the reasonable cost of furniture, fixtures and equipment

purchased by the Tenant within one (1) year immediately following the

Commencement Date for the exclusive use by the Tenant in the Leased Premises,

within thirty (30) days after delivery by the Tenant to the Landlord of a

complete copy of each invoice therefor, up to the maximum amount of $266,700.00

(the “Amount Financed”) over a period equal to the Initial Term, with interest

at the rate of twelve (12%) percent per annum; and the Tenant shall repay the

Amount Financed to the Landlord by making a constant monthly payment calculated

as an annuity in arrears to the Landlord on the first day of each month during

the Initial Term, which shall be in addition to all other Rent otherwise due

under this Agreement.  Payments shall be

applied first to any collection costs that may be due, second to interest due

and lastly to reduction of the outstanding principal amount. In addition to any

other remedies that may be applicable, upon the occurrence of any Event of

Default, the Amount Financed, and the balance thereof from time to time, together

with interest thereon, shall be subject to full acceleration at the option of

the Landlord.




 




44.3  If, prior

to the respective date of exercise thereof, (a)(i) no Event of Default shall

have occurred or (ii) if any Event of Default shall have occurred, the Tenant

shall have previously cured it in full or the Landlord shall have waived it and

(b) if there shall not have been a History of Recurring Events of Default, at

any time and from time to time (but not more frequently than once in any period

of 12 months) during the Initial Term, the Tenant shall have the right,

exercisable exclusively at the time and in the manner set forth below in

subsection 44.4 of this Agreement, to require that the Landlord (subject to any

similar obligations of the Landlord to any tenants of Other Leased Premises at

the time such notice is 




 




54





























 




received and provided that the Landlord is not negotiating with another

prospective tenant or existing tenant of Other Leased Premises for such

Available Space in the Building at the time that such notice is received)

whenever the Landlord becomes aware that the entire tenth floor (subject to the

conditions stated below) or the entire eleventh floor of the Building is

Available Space, give notice to the Tenant offering to lease such space to the

Tenant at the Market Rental Rate then in effect (and specifying same for a term

commencing and expiring on the respective dates set forth in the Landlord’s

notice, and the Tenant shall have the right, exercisable exclusively at the

time and in the manner set forth below in subsection 44.5 of this Agreement, to

accept such gross rentable floor space at the Market Rental Rate so specified

for a term commencing on the date set forth in the Landlord’s notice and

continuing for the greater of (a) the balance of the Initial Term, or (b) five

(5) years. Such requirement on the Landlord shall commence on the 10th day

after the Tenant shall have timely and otherwise properly given each such

notice to the Landlord and shall continue in effect until the earlier of: (i)

the Tenant’s timely and otherwise proper acceptance of any such offer made by

the Landlord or (ii) the Tenant’s failure to timely and otherwise properly

accept any such offer made by the Landlord. This is the “Right to Lease

Additional Space.” The Right to Lease Additional Space shall apply to the tenth

floor of the Building only if the Tenant either (a) exercises the Right to

Lease Additional Space with respect to both the entire tenth and eleventh

floors, or (b) has previously entered into a lease with the Landlord for the

entire eleventh floor of the Building. The Right to Lease Additional Space may

not be exercised by any person other than the Tenant or an Affiliate of the

Tenant to whom the Tenant has assigned this Agreement in accordance with the

provisions of subsection 17.6 of this Agreement.




 




44.4  The

Tenant shall exercise its right to require the Landlord to give the notices and

make the offers contemplated by subsection 44.3 of this Agreement by giving

timely and otherwise proper notice to the Landlord of its desire to lease

additional space.




 




44.5  The

Tenant shall exercise its right to accept any Landlord’s offer of additional

space contemplated by subsection 44.3 of this Agreement, by giving notice of

acceptance to the Landlord within twelve (12) business days after the Landlord

gives notice of the offer to the Tenant. All additional space leased by the

Tenant pursuant to the exercise of any Right to Lease Additional Space shall be

taken AS IS. If the Tenant fails timely to accept any offer of the Landlord,

its Right to Lease Additional Space shall thereupon terminate. In the event

that the Tenant exercises its right to accept any Landlord’s offer of

additional space contemplated by subsection 44.3 of this Agreement, and the

expiration date of the term for the Additional Leased Premises is subsequent to

the expiration date of the Initial Term for the Initial Leased Premises, then

the Tenant 




 




55





























 




shall have the option to extend the term of the Initial Term for the

Initial Leased Premises for such an additional term (which additional term

shall commence on the date which is immediately subsequent to the end of the

Initial Term) such that the expiration date of the Initial Term for the Initial

Leased Premises shall be the same as the expiration date of the term for the

Additional Leased Premises.  The annual

rate of Basic Rent for the Initial Leased Premises during such additional term

shall be at the Market Rental Rate then in effect as specified by the

Landlord.  Said option to extend the

term of the Initial Term of the Initial Leased Premises may be exercised by the

Tenant by giving notice of the exercise of said option simultaneously with the

giving of notice by the Tenant of the exercise of its option to accept the

Landlord’s offer for such additional space as set forth in this subsection

44.5.  In the event that the Tenant

exercises the option set forth in this subsection 44.5 to extend the term of

the Initial Term for the Initial Leased Premises prior to that date which is

immediately prior to the seven (7) year anniversary of the Commencement Date,

then all time periods set forth in section 6 of this Agreement shall be moved

ahead one day for each day that the term of the Initial Term for the Initial

Leased Premises is extended pursuant to this subsection 44.5.




 




44.6  If (a)(i)

no Event of Default shall have occurred or (ii) if an Event of Default shall

have occurred, the Tenant shall have previously cured it in full or the

Landlord shall have waived it and (b) if there shall not have been a History of

Recurring Events of Default, the amount of the Security Deposit required as set

forth in section 29.1 of this Agreement shall be reduced as follows as provided

in either 44.6.1 or 44.6.2, whichever is applicable:




 




44.6.1  if the

Tenant elects to require the Landlord to finance any of the costs as described

and provided in subsection 44.2 of this Agreement, then:




 




44.6.1.1  as of

the first day of the forty second (42nd) calendar month following

the Commencement Date, the amount of the Security Deposit required as set forth

in section 29.1 of this Agreement shall be reduced to $853,440.00;




 




44.6.1.2  as of

the first day of the sixty sixth (66th) calendar month immediately

following the Commencement Date, the amount of the Security Deposit required as

set forth in section 29.1 of this Agreement shall be reduced to $568,960.00;

and




 




44.6.1.3  as of

the first day of the ninetieth (90th) calendar month immediately

following the Commencement Date, the amount of the Security Deposit required as

set forth in section 29.1 of this Agreement shall be reduced to $284,480.00.




 




44.6.2  if the

Tenant does not elect to require the 




 




56





























 




Landlord to finance any of the costs as described and provided in

subsection 44.2 of this Agreement, then:




 




44.6.2.1  as of

the first day of the thirtieth (30th) calendar month following the

Commencement Date, the amount of the Security Deposit required as set forth in

section 29.1 of this Agreement shall be reduced to $853,440.00;




 




44.6.2.2  as of

the first day of the fifty fourth (54th) calendar month immediately

following the Commencement Date, the amount of the Security Deposit required as

set forth in section 29.1 of this Agreement shall be reduced to $568,960.00;

and




 




44.6.2.3  as of

the first day of the seventy eighth (78th) calendar month

immediately following the Commencement Date, the amount of the Security Deposit

required as set forth in section 29.1 of this Agreement shall be reduced to

$284,480.00.




 




44.7  If, prior to the respective date of exercise

thereof, (a)(i) no Event of Default shall have occurred or (ii) if any Event of

Default shall have occurred, the Tenant shall have previously cured it in full

or the Landlord shall have waived it and (b) if there shall not have been a

History of Recurring Events of Default, the Landlord hereby grants to the

Tenant a non-exclusive license:




 




44.7.1  during

the term, at its sole cost and expense, to install, maintain and replace a

single satellite dish antenna and associated equipment (the “Antenna”) on the

roof of the Building at such functional working location to be approved by the

Landlord in its sole discretion (the “Licensed Area”) in accordance with a

Tenant Plan regarding the installation (or, when applicable, the replacement)

of the Antenna; and




 




44.7.1.1  during the Term to use and operate the

Antenna exclusively for the Licensed Use (as hereinafter defined);




 




44.7.1.2  upon termination of the Term, to remove the

Antenna from the Licensed Area (except as otherwise set forth in Section 21 of

this Agreement) and restore: (i) any portions of the Licensed Area, the

Building and the Property damaged in the process and (ii) the Licensed Area

substantially to its condition immediately prior to the commencement of the

Term, reasonable wear and use excepted; and




 




44.7.1.3  have such access to the Licensed Area as may

be necessary to accomplish the foregoing.




 




44.7.2  The Landlord is making the Licensed Area

available to the Tenant under the license granted hereby in the Licensed Area’s

present “AS IS” condition.  The Landlord

makes no warranty or representation that the Licensed Area is suitable for 




 




57





























 




the Licensed Use. 

The Tenant shall make whatever examination and study it deems necessary

or appropriate to ascertain whether the Licensed Area is suitable for the

Tenant’s Licensed Use.  The License

granted hereby is not exclusive; and the Landlord hereby reserves for itself

and for its rooftop manager, if any, the right to grant, renew or extend

similar or dissimilar licenses to any and all other persons.  The Tenant’s availing itself of any rights

or incurring any obligations under or in connection with the license granted

hereby shall be exclusively at the Tenant’s expense and risk.  The Tenant shall use the Antenna exclusively

for telecommunications purposes to serve the Leased Premises (the “Licensed

Use”).  During the License, the Tenant

shall: (i) maintain and repair both the Antenna and the Licensed Area; (ii) not

damage the electrical or other systems or the structure of the Building or the

Property or that of any tenant of Other Leased Premises in the course of

installation, maintenance, operation, replacement, or removal of the Antenna;

(iii) not permit or suffer the Antenna to interfere with the communications,

data or video wires or cables of any other person or the signals carried

thereby or by electromagnetic broadcast or with the computer equipment of any

other person; and (iv) comply with all applicable Federal, state and local

statutes, rules, regulations and ordinances and with rulings and orders of any

governmental authority with jurisdiction regarding the Antenna or its installation,

replacement, maintenance, removal or use. 

Prior to installation, the Tenant shall provide the Landlord with one

complete copy of each of the Antenna’s full specifications, installation

manual, operational manual and any other manual provided by the manufacturer or

installer and intended for the end user.




 




44.7.3  If the Tenant Plan shall require penetration

of the Building’s roof for the installation of the satellite dish antenna

(which shall not exceed 36-inch diameter) and related wiring, the Tenant shall

cause its general contractor to subcontract with a so-called “bonded” roofing

subcontractor (i.e. a contractor approved by the manufacturer of the Building’s

roof system) approved by the Landlord for any roof penetration and restoration

work (including any restoration required by section 21 of this Agreement in

connection with removal of same) for the purpose of preserving unimpaired any

roof warranties and service agreements in effect for the benefit of the

Landlord and its general contractor. 

The Tenant shall cause the Tenant Plan to show the installation of

rooftop walkways between the Building’s nearest roof access and the equipment

or lines installed for the purpose of obviating wear and tear on the roof by

contractors and technicians servicing the equipment or lines from time to time

and shall cause them to be installed; and, again utilizing a “bonded” roofing

contractor, the Tenant shall restore the roof in a good and workmanlike manner

to the condition it was in prior to the penetration, achieving full

weatherproofing in the area of the penetration.  Upon termination of the Term, the Tenant shall, again utilizing a

“bonded” roofing contractor, remove the satellite dish and related wiring and

restore the roof in a good and workmanlike manner to the condition it was in

prior to the penetration, achieving full weatherproofing in the area of the 




 




58





























 




penetration.




 




44.7.4  Notwithstanding anything to the contrary set

forth in this subsection 44.7, the Tenant shall:




 




44.7.4.1  be

limited to a maximum of one roof




penetration;




 




44.7.4.2  not

install any satellite dish of such a size and weight that, in the reasonable

opinion of the Landlord’s structural engineer, would require any structural

reinforcement of the building or any of its components.




 




44.7.4.3  pay

the Landlord in addition to all other Rent due under this Agreement the

following amount(s) per month of the Term: 

(i) $100.00 for a satellite dish antenna up to 18 inches in diameter or

width, (ii) $200.00 for a satellite dish antenna over 18 inches and not more

than 36 inches in diameter or width, or (iii) $500.00 for a satellite dish

antenna over 36 inches in diameter or width.




 




44.7.5  The

Tenant shall, upon request of the Landlord, work directly with the Landlord’s

rooftop manager in connection with the rights and obligations set forth in this

subsection 44.7.




 




44.8  As

further consideration for the Tenant to enter into this Agreement, if (a)(i) no

Event of Default shall have occurred or (ii) if an Event of Default shall have

occurred, the Tenant shall have previously cured it in full or the Landlord

shall have waived it and (b) if there shall not have been a History of

Recurring Events of Default, the Landlord shall, subject to the terms and

conditions set forth in this Agreement, pay such rent obligations of the Tenant

under the Tenant’s Current Lease as set forth below for the balance of the

initial term of the Tenant’s Current Lease which accrue on and after the

Commencement Date, up to the aggregate maximum amount of Five Hundred Thirty

Nine Thousand ($539,000.00) Dollars subject to adjustment as follows (“Maximum

Amount”):  (a) The Maximum Amount shall

be increased by the amount of One Thousand Four Hundred Sixty Seven ($1,467.00)

Dollars for each day by which the Commencement Date precedes November 1, 2002;

and (b) The Maximum Amount shall be decreased by the amount of One Thousand

Four Hundred Sixty Seven ($1,467.00) Dollars for each day by which the

Commencement Date occurs later than November 1, 2002.




 




44.8.1  The

Landlord shall be obligated to pay only the following monthly rental

obligations of the Tenant under the Tenant’s Current Lease after delivery by

the Tenant of a copy of the invoice or statement therefor to the Landlord:




 




44.8.1.1  Fixed

rent pursuant to paragraph (d) of subsection 1.04 of the Tenant’s Current

Lease;




 




44.8.1.2 

Additional rent pursuant to sections 5.02 and 5.03 of the Tenant’s

Current Lease, except that the Landlord 




 




59





























 




shall not be obligated to pay any reconciliations pursuant to section

5.03 of the Tenant’s Current Lease pertaining to (i) any calendar year prior to

the 2002 calendar year, and (ii) the portion of the 2002 calendar year

occurring prior to the Commencement Date;




 




44.8.1.3 

Additional rent pursuant to sections 5.05 and 5.06 of the Tenant’s

Current Lease, except that the Landlord shall not be obligated to pay any

reconciliations pursuant to section 5.06 pertaining to (i) any calendar year

prior to the 2002 calendar year, and (ii) the pro-rata portion of the 2002

calendar year occurring prior to the Commencement Date; and




 




44.8.1.4  Additional rent pursuant to section 15.01 of

the Tenant’s Current Lease.




 




44.8.2 

Notwithstanding anything contained herein to the contrary, the Landlord

shall have no obligation to pay any amounts due under the Tenant’s Current

Lease for damages as a result of a default by the Tenant under the Tenant’s

Current Lease, except any damages to which the Tenant is obligated to pay

caused by the Landlord’s failure to fulfill its obligations under subsections

44.8.1.1, 44.8.1.2, 44.8.1.3 or 44.8.1.4 of this Agreement or as a result of

the abandonment by the Tenant of the leased premises under the Tenant’s Current

Lease, subject to the following:




 




44.8.2.1  in

the event that a judgment issued by a court of competent jurisdiction provides

for the acceleration of the rent due under the Tenant’s Current Lease as such

damages, the Landlord shall pay such accelerated rent (pertaining only to rent

accruing subsequent to the Commencement Date) when due and payable, provided

that the Tenant shall have first paid to the Landlord, in accordance with

section 29.2 of this Agreement, an amount of security deposit (in addition to

the amount of security deposit as set forth in section 29.1 of this Agreement)

equal to the amount of accelerated rent to be paid by the Landlord as damages.

If (a)(i) no Event of Default shall have occurred or (ii) if an Event of

Default shall have occurred, the Tenant shall have previously cured it in full

or the Landlord shall have waived it and (b) if there shall not have been a

History of Recurring Events of Default, the amount of such additional Security

Deposit required as set forth in this subsection 44.8.2.1 shall be reduced by

the amount of Forty Four Thousand ($44,000.00) Dollars after each thirty (30)

day period following the payment of such security deposit; and




 




44.8.2.2  in no

event shall the amount paid or to be paid by the Landlord in satisfaction of

the obligations of the Tenant under the Tenant’s Current Lease exceed in the

aggregate the Maximum Amount as stated in section 44.8 of this Agreement;

except the Maximum Amount shall not apply to (i) obligations of the Tenant

under section 26.03 of the Tenant’s Current Lease or (ii) reasonable attorney’s

fees and costs incurred by the Tenant in defending a lawsuit instituted by the

landlord of the Tenant’s Current Lease, in either case based upon the

Landlord’s failure 




 




60





























 




to fulfill its obligations under subsections 44.8.1.1, 44.8.1.2,

44.8.1.3 or 44.8.1.4 of this Agreement or based upon the abandonment by the

Tenant of the leased premises under the Tenant’s Current Lease as may be

alleged by the landlord of the Tenant’s Current Lease, provided, however, that

in the event that the landlord of the Tenant’s Current Lease institutes such

lawsuit, the Landlord may, by notice to the Tenant, participate therein and, to

the extent it may desire, assume the defense thereof through counsel selected

by the Landlord.




 




44.8.3 

Notwithstanding anything contained herein to the contrary, the Landlord

shall have no obligation to pay any amounts due under the Tenant’s Current

Lease arising out of the acts or omissions of the Tenant or for any other

obligations pertaining to any period or accruing prior to the Commencement

Date.




 




44.8.4  Except

as provided in subsections 44.8.1 and 44.8.2 of this Agreement, the Tenant

shall continue to perform and comply with all of its obligations under the

Tenant’s Current Lease, including, but not limited to, the maintenance of

insurance, repairs and maintenance, indemnification and environmental

compliance.  The Tenant shall take no

action or omit to take any action which could result in a default under or

breach of the Tenant’s Current Lease or an increase in the obligations of the

Landlord under subsections 44.8.1.1, 44.8.1.2, 44.8.1.3 or 44.8.1.4 of this

Agreement.  In the event that the Tenant

defaults under or is breach of the Tenant’s Current Lease other than as a

result of the Landlord’s failure to perform its obligations under subsections

44.8.1.1, 44.8.1.2, 44.8.1.3 or 44.8.1.4 of this Agreement or as a result of

the abandonment of the leased premises under the Tenant’s Current Lease, the

Landlord shall be relieved of its obligations under this subsection 44.8.




 




44.8.5  The

Landlord shall pay the rental obligations set forth in subsection 44.8.1

directly to the landlord of the Tenant’s Current Lease in accordance with the

terms of the Tenant’s Current Lease.




 




44.8.6  The

Tenant shall, at its sole cost and expense, quit and surrender the subject

leased premises in accordance with Article 23 of the Tenant’s Current Lease

within ten (10) days after the Commencement Date.




 




44.8.7  Upon

the request by the Landlord, on such terms and conditions reasonably determined

by the Landlord, the Tenant shall, subject to the terms and conditions of the

Tenant’s Current Lease and subject to the consent of the landlord of the

Tenant’s Current Lease, if required, assign, sublease or otherwise dispose of

the Tenant’s rights under the Tenant’s Current Lease to the Landlord or a third

party or enter into a termination and release agreement with the landlord of

the Tenant’s Current Lease or negotiate terms of the Tenant’s Current Lease

which are more favorable to the Tenant. Upon the assignment of the Tenant’s

interest in the Tenant’s Current Lease, the Landlord shall have no obligations

under this subsection 44.8 to 




 




61





























 




the extent that such assignee pays obligations of the Tenant under the

Tenant’s Current Lease. The Landlord shall be entitled to receive all rents and

other consideration received or due and payable from any sublessee of the

subject leased premises of the Tenant’s Current Lease to the extent that the

Landlord has paid the rental obligations set forth in subsection 44.8.1 of this

Agreement and the Tenant shall pay over to the Landlord any such rents or other

consideration received from any such sublessee within ten (10) days after its

receipt by the Tenant.




 




44.8.8  The

Tenant shall not exercise any options to renew or expand or any other options

or rights under the Tenant’s Current Lease.




 




44.8.9  The

Tenant, within three (3) business days after its receipt thereof, shall furnish

the Landlord with a copy of all bills, statements, notices, correspondence,

claim or litigation documents and any other documentation received from the

landlord of the Tenant’s Current Lease or delivered by the Tenant to the landlord

of the Tenant’s Current Lease or served upon the Tenant.




 




44.8.10  The

Tenant shall cooperate with the Landlord with respect to the obligations of the

Landlord and the Tenant under this subsection and execute any and all

documentation reasonably required to effectuate the terms of this subsection.

The Tenant hereby appoints the Landlord as its attorney-in-fact to take any

action to effectuate the terms of this subsection without the necessity of

executing any further documentation.




 




44.8.11  As a

condition to the Landlord performing its obligations under this subsection

44.8, the Tenant shall execute and deliver to the Landlord on the Commencement

Date, the Tenant’s Certificate dated as of the Commencement Date, containing

the terms and in the form of Exhibit G attached hereto.




 




44.8.12 

Nothing herein shall be construed as an assignment by the Tenant to the

Landlord of its rights, title and interest under the Lease or an assumption by

the Landlord of the obligations of the Tenant under the Tenant’s Current Lease.




 




44.9  Subject

to the Landlord’s review and approval of the Tenant Plan therefor, the Tenant

shall have the right to cut through the floor plate of the fourteenth floor of

the Building within the Initial Leased Premises to construct and install one

set of stairs between the twelfth and the fourteenth floors of the Building

within the Initial Leased Premises, provided that upon termination of the Term,

or at any other time at which the Landlord, by virtue of any provision of this

Agreement or otherwise has the right to re-enter and re-take possession of the

Leased Premises, the Tenant shall, at its sole cost and expense, remove such

stairs and any other alterations, improvements and other modifications

constructed or installed in connection therewith as set forth in the Tenant

Plan, and restore to the same condition as existing as of the date hereof,

including, but




 




62





























 




not limited to, the heating, ventilation and air conditioning systems,

the sprinkler systems and Walker duct systems. 

Notwithstanding the foregoing, in the event that (i) the Tenant occupies

the Initial Leased Premises during the entire Initial Term and the entire

Renewal Term, (ii) the Tenant fulfills all of its obligations under this

Agreement during the Initial Term and after exercising the Option to Renew

fulfills all of its obligations under this Agreement during the Renewal Term,

and (iii) if (a)(i) no Event of Default shall have occurred or (ii) if an Event

of Default shall have occurred, the Tenant shall have previously cured it in

full or the Landlord shall have waived it and (b) there shall not have been a

History of Recurring Events of Default, the Tenant shall be relieved of its

obligation herein to remove and restore such stairs and any such other

alterations, improvements or other modifications constructed or installed in

connection therewith.




 




44.10  Subject

to the Landlord’s review and approval of the Tenant Plan therefor, the Tenant

shall have the non-exclusive right, subject to the Landlord’s review and

reasonable approval, to use the existing risers and chases located in the

Common Facilities between the Leased Premises and other portions of the

Building, subject to space availability, for the installation and maintenance

of conduits, cables and other devices for telecommunications and data

processing, supplemental heating, ventilation and air conditioning systems and

other facilities serving the Leased Premises consistent with the Tenant’s use

of the Leased Premises and other portions of the Building.  If there is no available space in such

existing risers or chases for telecommunications or data processing conduits or

cables, then Tenant, at its sole cost and expense, subject to the prior review

and reasonable approval of a Tenant Plan furnished by the Tenant, may construct

and install new risers or chases in the Common Facilities between the Leased

Premises and other portions of the Building for its non-exclusive use for the

installation and maintenance of conduits, cables and other devices for

telecommunications and data processing serving the Leased Premises.  The Tenant shall not permit or suffer any of

its installations described in this subsection to interfere with the communications,

data or video wires or cables of any other person or the signals carried

thereby or with the computer equipment of any other person.




 




44.11 

Notwithstanding anything to the contrary that may be set forth in

subsection 28.1 of this Agreement, if (a) electricity, water, or, between May 15th

and September 30th of each year during the Term, building standard

air conditioning during Regular Business Hours or, between October 15th

and May 14th, heat as needed to the Building or to the Leased

Premises or any material portion of either is interrupted for a period of more

than seven (7) consecutive business days; and (b) if, and to the extent, the

Tenant is prevented by such interruption from using the Leased Premises or any

material portion thereof; and (c) if the cause of such interruption is located

on the Property and distinctly within the control of the Landlord to cure (as 




 




63





























 




opposed to interruptions caused by a utility or vendor outage affecting

other properties in the area as well as the Property), then Rent shall abate,

to the extent the Tenant is prevented by such interruption from using the

Leased Premises or any material portion thereof, from the day after the

conclusion of such seven (7) consecutive business day period until such interruption

is so cured that the Tenant may again utilize the Leased Premises or the

material portion thereof it was prevented thereby from using as a result of

such interruption.




 




44.12 

Notwithstanding anything contained herein to the contrary, if (a)(i) no

Event of Default shall have occurred or (ii) if any Event of Default shall have

occurred, the Tenant shall have previously cured it in full and the Landlord

shall have waived it, and (b) in the event the Landlord shall have failed to

achieve Substantial Completion of the Tenant’s Buildout on or before that date

which is nine (9) months after the issuance by the Municipality of full

permitting, including, but not limited to, building, electrical, plumbing and

fire, for Tenant’s Buildout (exclusive of force majeure reasons and adjusted on

a day for day basis as a result of Tenant Delay), then Tenant shall have the

option, exercisable exclusively by written notice to the Landlord given within

fourteen (14) days after the end of said nine (9) month period and before the

Landlord shall have achieved Substantial Completion of the Tenant’s Buildout,

to cancel this Agreement effective immediately.  This is the “Option to Cancel”. 

In the event that the Tenant fails to timely and properly exercise the

Option to Cancel, then this Lease shall remain in full force and effect.




 




IN WITNESS WHEREOF, the parties hereto have caused

this




 




64





























 




Agreement to be executed as of the date first above written.




 




	

   


  	

  LANDLORD:


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  SCV

  Partners


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  By:


  	

  Boston Properties Limited Partnership, a general

  partner


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  Boston Properties, Inc., its general partner


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  /s/ Mitchell

  Landis,


  	

   


  
	

   


  	

   


  	

  Mitchell Landis,


  	

   


  
	

   


  	

   


  	

  Senior Vice President


  	

   


  
	

   


  	

   


  	

   


  	 

	

   


  	

  By:


  	

  Boston Properties, L.L.C., a general partner


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  Boston Properties Limited Partnership, its managing

  member


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  Boston Properties, Inc., its general partner


  	

   


  
	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  /s/ Mitchell

  Landis,


  	

   


  
	

   


  	

   


  	

  Mitchell Landis,


  	

   


  	 

	

   


  	

   


  	

  Senior Vice President


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  TENANT:


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  Bio-Technology

  General Corp.


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  By:


  	

  /s/

  Robert M. Shaw


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  Name:


  	

  Robert

  M. Shaw


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  Title:


  	

  Senior Vice President,

  General Counsel and Secretary


  	

   


  	 

												





 




65





























 




EXHIBIT

A




 




INITIAL LEASED

PREMISES FLOOR SPACE DIAGRAM




 




1





























 




EXHIBIT

B




 




PROPERTY DESCRIPTION




 




All that certain parcel of land situate in the Township of East

Brunswick, Middlesex County, New Jersey, more particularly described as

follows:




 




The parcel of land constituting a part of the One Tower Center

Condominium Unit as defined and created under that certain Master Deed for the

Tower Center South Condominium, dated October 2, 1987, and recorded on October

7, 1987, in Deed Book 3651 at pp. 140 ff. in the Middlesex County Clerk’s

Office, as the same may now or hereafter be lawfully amended and supplemented

from time to time (the “Master Deed”), together with: (i) an undivided 33.33%

interest in the Common Elements defined in the Master Deed; (ii) the free and

common uses, rights, privileges and easements set forth in the Master Deed; and

(iii) the free and common uses, rights, privileges and easements set forth in

the Declaration of Easement recorded in Middlesex County Deed Book 3651 at pp.

244 ff., as it may now or hereafter by amended or supplemented from time to

time.




 




1





























 




EXHIBIT

C




 




BUILDING DESCRIPTION




 




The Building’s structure is a 23-story office building

(including a 7-story parking deck) of Construction Type 1B with sprinklers, a

steel frame, a metal deck and concrete floor system, an aluminum curtain wall

and an exterior facade of granite and insulated glass. The floors will sustain

a live load of 50 pounds per square foot of usable floor space plus an

allowance of 20 pounds per square foot for partitions and will have a typical

bay size of 30 feet by 30 feet.




 




Among other Common Facilities, the Building will

contain one men’s and one women’s bathroom on each floor, one water cooler on

each floor and six gearless traction passenger elevators of which five have a

capacity of 3,500 pounds each and the sixth has a capacity of 4,000 pounds.




 




“Building standard” shall mean the type and grade of

material, equipment, device or service designated by the Landlord as standard

for leased premises in the Building.




 




The Tenant shall include the following information as

part of its Tenant Plan:




 




1.             The location and extent of floor loading, if any, in

excess of the building standard specified above.




 




2.             Special air conditioning requirements, if any, in excess

of building standard.




 




3.             Plumbing requirements, if any.




 




4.             Estimated total electrical load, including lighting

requirements, lighting switch requirements and electrical outlet requirements,

if any, in excess of building standard, setting forth the amount of the load,

locations and types.




 




5.             Necessary or appropriate engineering data and drawings

with respect to the preceding four items.




 




1





























 




EXHIBIT

D




 




BUILDING RULES AND

REGULATIONS




 




The following are the Building Rules and Regulations

adopted in accordance with subsection 7.2.3 of the Agreement of which this

exhibit is a part; and the Tenant and the Tenant’s employees, other agents and

Guests shall comply with these Building Rules and Regulations:




 




1.  The

sidewalks, driveways, entrances, passages, courts, lobby, esplanade areas,

plazas, elevators, vestibules, stairways, corridors, halls and other Common

Facilities shall not be obstructed or encumbered or used for any purpose other

than ingress and egress to and from the Leased Premises. The Tenant shall not

permit or suffer any of its employees, other agents or Guests to congregate in

any of the said areas. No door mat of any kind whatsoever shall be placed or left

in any public hall or outside any entry door of the Leased Premises.




 




2.  No awnings

or other projections shall be attached to the outside walls of the Building. No

curtains, drapes, blinds, shades or screens shall be attached to, hung in or

used in connection with any window or door of the Leased Premises without the

prior written consent of the Landlord. If such consent is given, such curtains,

drapes, blinds, shades or screens shall be of a quality, type, design and

color, and attached in the manner, approved by the Landlord.




 




3.  Except as

otherwise specifically provided in subsection 18.1 of the Agreement, no sign,

insignia, advertisement, object, notice or other lettering shall be exhibited,

inscribed, painted or affixed so as to be visible from outside the Leased

Premises or the Building. In the event of the violation of the foregoing by the

Tenant, the Landlord may remove same without any liability and may charge the

expense incurred in such removal to the Tenant.




 




4.  The sashes,

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 and no bottles, parcels or other articles shall be placed

on the window sills.




 




5.  No showcase

or other articles shall be placed in front of or affixed to any part of the

Building or the Common Facilities.




 




6.  The

lavatories, water and wash closets and 




 




1





























 




other plumbing fixtures shall not be used for any purposes other than

those for which they were designed and constructed, and no sweepings, rubbish,

rags, acids or other substances shall be thrown or deposited therein. All

damages resulting from any misuse thereof shall be repaired at the expense of

the Tenant that permitted or suffered the violation hereof by the Tenant, the

Tenant’s employees, other agents or Guests.




 




7.  The Tenant

shall not mark, paint, drill into or in any way deface any part of the Leased

Premises, the Building, the Common Facilities or the Property. No boring,

cutting or stringing of wires shall be permitted, except with the prior written

consent of the Landlord, and as the Landlord may direct. Linoleum and other

resilient floor coverings shall be laid so that the same shall not come in

direct contact with the floor of the Leased Premises; and if linoleum or other

resilient floor coverings are desired, an interlining of builder’s deadening

felt shall be first affixed to the floor by a paste or other material that is,

and will remain, soluble in water. The use of cement or other adhesive material

that either is not, or will not remain, soluble in water is prohibited.




 




8.  No

bicycles, vehicles, animals, reptiles, fish or birds of any kind shall be

brought into or kept in or about the Leased Premises.




 




9.  No noise

including, without limiting the generality of the foregoing, music or the

playing of musical instruments, recordings, radio or television which, in the

reasonable judgment of the Landlord, might disturb tenants of Other Leased

Premises shall be made or permitted by the Tenant. Nothing shall be done or

permitted in the Leased Premises by the Tenant which would impair or interfere

with the use or enjoyment of Other Leased Premises by any tenant thereof.

Nothing shall be thrown out of the doors, windows or skylights or down the

passageways of the Building.




 




10.  The Tenant

shall not manufacture any commodity, or prepare or dispense any foods or

beverages (except using a microwave oven or coffee machine), tobacco, flowers

or other commodities or articles without the prior written consent of the

Landlord.




 




11.  Duplicates

of keys and passes distributed to the Tenant by the Landlord shall not be made.

The Tenant shall provide appropriate security for keys. Nothing shall be done to

render any lock inoperable by the Building Grand Master Key. No lock shall be

installed without the Landlord’s prior written consent; and any lock so

installed shall be operable by the Building Grand Master Key. Upon termination

of the Term, all keys, passes and duplicates provided by the Landlord to the

Tenant, or otherwise procured by the Tenant, shall be returned to the Landlord.

Any failure to comply with the foregoing which requires changes in locks, new

or additional keys, passes or 




 




2





























 




duplicates or other services of a locksmith shall be paid by the

Tenant.




 




12.  All

deliveries and removals, and the carrying in or out of any safes, freight,

furniture, packages, boxes, crates or any other object or matter of any

description shall take place during such hours, in such manner and in such

elevators and passageways as the Landlord may determine from time to time. The

Landlord reserves the right to inspect all objects and matter being brought

into the Building or the Common Facilities and to exclude from the Building and

the Common Facilities all objects and matter that violates any of these

Building Rules and Regulations or that are contraband. The Landlord may (but

shall not be obligated to) require any person leaving the Building or the

Common Facilities with any package or object or matter from the Leased Premises

to establish his authority from the Tenant to do so. The establishment and

enforcement of such a requirement shall not impose any responsibility on the

Landlord for the protection of the Tenant against the removal of property from

the Leased Premises. The Landlord shall not be liable to the Tenant for damages

or loss arising from the admission, exclusion or ejection of any person to or

from the Leased Premises or the Building or the Common Facilities under this

rule.




 




13.  The Tenant

shall not place any object in any portion of the Building that is in excess of

the safe carrying or designed load capacity of the structure.




 




14.  The

Landlord shall have the right to prohibit any advertising or display of any

identifying sign by the Tenant which in the Landlord’s judgment tends to impair

the reputation of the Building or its desirability; and, on written notice from

the Landlord, the Tenant shall refrain from or discontinue such advertising or

display of such identifying sign.




 




15.  The

Landlord reserves the right to exclude from the Building and the Common

Facilities during hours other than Regular Business Hours all persons who do

not present a pass thereto signed by both the Landlord and the Tenant. All

persons entering or leaving the Building or the Common Facilities during hours

other than Regular Business may be required to sign a register. The Landlord

will furnish passes to persons for whom the Tenant requests same in writing.

The establishment and enforcement of such a requirement shall not impose any

responsibility on the Landlord for the protection of the Tenant against

unauthorized entry of persons.




 




16.  The

Tenant, before closing and leaving the Leased Premises at any time shall see

that all lights and appliances generating heat (other than the heating system)

are turned off. All entrance doors to the Leased Premises shall be left locked

by the Tenant when the Leased Premises are not in use. At any time when the

Building or the Common Facilities are locked during hours other than Regular

Business Hours, the 




 




3





























 




Building and the Common Facilities locks shall not be defeated by any

means, such as by leaving a door ajar.




 




17.  No person

shall go upon the roof of the Building without the prior written consent of the

Landlord.




 




18.  Any

requirements of the Tenant may be attended to only upon application at the

office of the Building. The Landlord and its agents shall not perform any work

or do any work or do anything outside of the Landlord’s obligations under the

Agreement except upon special instructions from the Landlord on terms

acceptable to the Landlord and the Tenant.




 




19. 

Canvassing, soliciting and peddling in the Building and the Common

Facilities are prohibited and the Tenant shall cooperate to prevent same.




 




20.  There

shall not be used in any space, or in the public halls or other Common

Facilities of the Building, in connection with the moving or delivery or

receipt of safes, freight, furniture, packages, boxes, crates, paper, office

material, or any other matter or thing, any hand trucks or dollies except those

equipped with rubber tires, side guards and such other safeguards as the Landlord

shall require. No hand trucks shall be used in passenger elevators, and no

passenger elevators shall be used for the moving, delivery or receipt of the

aforementioned articles. In connection with moving in or out any furniture,

furnishings, equipment, heavy articles and heavy packages, the Tenant shall

take such precautions as may be necessary to prevent excessive wear and tear in

the Building’s Common Facilities and the Leased Premises including, without

limiting the generality of the foregoing, floor and wall treatments.




 




21.  The Tenant

shall not cause or permit any odors of cooking or other processes or any

unusual or objectionable odors to emanate from the Leased Premises which might

constitute a Nuisance. No cooking shall be done in the Leased Premises other

than using a microwave oven or coffee machine, except as specifically permitted

in the Agreement.




 




22.  The

Landlord reserves the right not to enforce any Building Rule or Regulation

against any tenants of Other Leased Premises. The Landlord reserves the right

to rescind, amend or waive any Building Rule and Regulation when, in the

Landlord’s reasonable judgment, it appears necessary or desirable for the

reputation, safety, care or appearance of the Building or the preservation of

good order therein or the operation of the Building or the comfort of tenants

or others in the Building. No rescission, amendment or waiver of any Building

Rule and Regulation in favor of one tenant shall operate as a rescission,

amendment or waiver in favor of any other tenant.




 




4





























 




EXHIBIT

E




 




DEFINITIONS AND

INDEX OF DEFINITIONS




 




In accordance with section 1 of the Agreement of which

this exhibit is a part, throughout the Agreement the following terms and

phrases shall have the meanings set forth or referred to below:




 




1      “Additional Leased Premises” means any portion of the interior

of the Building (as viewed from the interior of the respective Additional

Leased Premises) bounded by the interior sides of the unfinished floor and the

finished ceiling on the applicable floor of the Building, the centers of all

Common Walls and the exterior sides of all walls other than Common Walls that

the Tenant may lease (other than the Initial Leased Premises) in the Building

pursuant to the Tenant’s exercise of any Right to Lease Additional Space.




 




2      “Additional Rent” means all amounts, other than Basic Rent and

any Security Deposit, required to be paid by the Tenant to the Landlord in

accordance with this Agreement.




 




3      “Affiliate” of any person means a person controlling,

controlled by, or under common control with, that person.




 




4      “Agreement” means this Lease and Lease Agreement (including

exhibits), as it may have been amended.




 




5      “Allocable Share” means, when used in the context of

maintenance and other charges and assessments of the Tower Center South

Condominium Association, 33.3% of charges and assessments for maintenance of

areas outside the Building and outside the other two buildings forming a part

of the respective condominium units within the Tower Center South Condominium

(with the exception of charges for maintenance of a utility line, if any, that

serves only the Building, in which case 100% thereof) and 100% of charges and

assessments for operation and maintenance of the garage areas in the Building;

and means, when used in the context of the Tower Center North Condominium

Association or the Upper Building Unit, none of the Tower Center North

Condominium Association’s charges and other assessments to the Upper Building Unit

(or successor condominium unit).




 




6      “Annual Amortized Capital Expenditure” means the payment amount

determined as an annuity in arrears using the cost incurred by the Landlord for

any Capital Expenditure (as said term is defined in this Agreement) as the

present value, the number of years of its useful life (not exceeding ten (10)

years) selected by the Landlord in accordance with generally applied 




 




1





























 




real estate accounting practice as the number of periods

and the Base Rate in effect when the respective improvement is first placed

into service plus two (2) additional percentage points as the annual rate of

interest. Notwithstanding the foregoing, for the purposes of calculating the

Annual Amortized Capital Expenditure related to the cost incurred by the

Landlord for any Capital Expenditure, the maximum amount of the cost of any

such Capital Expenditure made by the Landlord which may be included by the

Landlord in the calculation of the Annual Amortized Capital Expenditure for the

Tenant in each calendar year during the Term shall not exceed the amount of

Fifty ($0.50) Cents per square foot of rentable space in the Building ($0.50 x

405,006 rentable square feet = $202,503.00) for each such Capital Expenditure.

By way of example, if the amount of the cost incurred by the Landlord for a new

Capital Expenditure made by the Landlord in calendar year 2003 is $500,000.00

and such Capital Expenditure has a useful life of 10 years, the amount of such

Capital Expenditure which may be included in the calculation of the Annual

Amortized Capital Expenditure in each calendar year commencing with calendar

year 2004 shall be $50,000.00 plus interest, and based upon the initial

Tenant’s Share of 13.17%, the Tenant’s Share of such Annual Annualized Capital

Expenditure would equal $6,585.00 plus interest; if the amount of the cost

incurred by the Landlord for a new Capital Expenditure made by the Landlord in

calendar year 2005 is $2,500,000.00 and the useful life of such Capital

Expenditure is 10 years, the maximum amount of such new Capital Expenditure

which may be included in the calculation of the Annual Amortized Capital

Expenditure in each calendar year commencing with calendar year 2005 shall be

$202,503.00, and based upon the initial Tenant’s Share of 13.17%, the Tenant’s

Share of such Annual Annualized Capital Expenditure would equal $26,669.65.

Therefore, assuming that the above examples were the only Capital Expenditures

made by the Landlord in calendar years 2003 through 2005 respectively, the

Tenant’s Share of the total Annual Amortized Capital Expenditures in calendar

year 2005 would then equal the aggregate amount of $6,585.00 plus interest plus

$26,669.65.




 




7      “Available Space” means, when used in the context of the Right

to Lease Additional Space, Other Leased Premises that will become available for

lease to others, generally and without limitation or restriction, due to the

termination of the term of the lease with its then present tenant and the

tenant’s unwillingness to renew or otherwise extend the term, regardless of

whether any such renewal or other extension is pursuant to a renewal or

extension right or option set forth in the then present tenant’s lease, or not.




 




8      “Base Rate” means the prime commercial lending rate per year as

announced from time to time by The Chase Manhattan Bank (National Association)

at its principal office in New York City.




 




9      “Base Year” means the full calendar year 2003 with respect to

Operational Expenses and Taxes.




 




2





























 




10    “Base Year Operational Expenses” means actual Operational

Expenses incurred by the Landlord with respect to the Base Year.




 




11    “Base Year Taxes” means actual Taxes incurred by the Landlord

with respect to the Property and the Building with respect to the Base Year.




 




12    “Basic Rent” is defined in subsection 3.2 of this Agreement.




 




13    “Building” means the office building and garage erected

constituting a part of the One Tower Center condominium unit in the Tower

Center South Condominium, which is commonly known as One Tower Center, East

Brunswick, New Jersey 08816, as it may be increased, decreased, modified,

altered or otherwise changed from time to time before, during or after the

Term, in accordance with the master deed, as it may be amended, of the Tower

Center South Condominium. As the Building is presently constructed, it consists

of 405,006 gross rentable square feet of floor space.




 




14     “Building Description” means Exhibit C attached hereto which

generally describes the type of construction of the Building.




 




15     “Building standard” is defined in Exhibit C of this Agreement.




 




16     “Capital Expenditure” is defined in subsection 10.3 of this

Agreement.




 




17     “Commencement Date” is defined in section 4 of this Agreement.




 




18     “Common Facilities” means the areas, facilities and improvements

provided by the Landlord in the Building (except the Leased Premises and the

Other Leased Premises) and on or about the Property, including, without

limiting the generality of the foregoing, the Parking Facilities and access

roads thereto, for non-exclusive use by the Tenant in accordance with

subsection 2.3 of this Agreement, as they may, in the Landlord’s sole

discretion, be increased, decreased, modified, altered or otherwise changed from

time to time before, during or after the Term.




 




19     “Common Walls” means those walls which separate the Leased

Premises from Other Leased Premises.




 




20     “Electric Charges” means all the supplying utility’s charges

for, or in connection with, furnishing electricity including charges determined

by actual usage, any seasonal adjustments, demand charges, energy charges,

energy adjustment charges and any other charges, howsoever denominated, of the

supplying utility, including sales and excise taxes and the like.




 




21     “Event of Default” is defined in section 22 of this Agreement.




 




3





























 




22     “Expiring Term” means, at the time of reference, the Term as it

is then scheduled to expire.




 




23     The Tenant’s “Guests” shall mean the Tenant’s licensees,

invitees and all others in, on or about the Leased Premises, the Building, the

Common Facilities or the Property, either at the Tenant’s express or implied

request or invitation or for the purpose of soliciting or visiting the Tenant.




 




24     A “History of Recurring Events of Default” means the occurrence

of three or more Events of Default (whether or not cured by the Tenant) in any

period of twelve (12) months.




 




25     “Holdover Damages” is defined in subsection 23.4 of this Agreement.




 




26     The “Index” means the “all items” index figure for the New York

Northeastern New Jersey average of the Consumer Price Index for all urban wage

earners and clerical workers which uses a base period of 1982-84=100, published

by the United States Department of Labor, so long as it continues to be

published. If the Index is not published for a period of three consecutive

months, or if its base period is changed, the term “Index” shall mean that

index, as nearly equivalent in purpose, function and coverage as practicable to

the original Index, which the Landlord shall have designated by notice to the

Tenant.




 




27     “Initial Leased Premises” means that portion of the interior of

the Building (as viewed from the interior of the Leased Premises) bounded by the

interior sides of the unfinished floor and the finished ceiling on the twelfth

and fourteenth floors (as the floors have been designated by the Landlord) of

the Building, the centers of all Common Walls and the exterior sides of all

walls other than Common Walls, the outline of which floor space is designated

on the diagram set forth in Exhibit A attached hereto, which portion contains

41,031 square feet of usable floor space and 53,340 square feet of gross

rentable floor space; and references within this Agreement to the usable floor

space and the gross rentable floor space, respectively, of the Leased Premises

shall mean the respective quantities herein specified.




 




28     “Initial Year” means the first twelve (12) full calendar months

of the Term occurring on and after the Commencement Date (if the Commencement

Date occurs on the first day of a calendar month) or occurring after the

Commencement Date (if the Commencement Date occurs on other than the first day

of a calendar month.)




 




29     “Initial Term” means the period so designated in subsection 4.1

of this Agreement.




 




30     “Initial Year” means the first twelve (12) full calendar 




 




4





























 




months of the Initial Term.




 




31     “Landlord” means the person so designated at the beginning of

this Agreement and those successors to the Landlord’s interest in the Property

and/or the Landlord’s rights and obligations under this Agreement contemplated

by section 26 of this Agreement.




 




32     “Lease Year” means the Initial Year and each succeeding period

of twelve (12) consecutive calendar months that commences immediately after the

end of the immediately preceding Lease Year.




 




33     “Leased Premises” means the Initial Leased Premises and, at the

time of reference, any Additional Leased Premises.




 




34     “Legal Holidays” means New Year’s Day, Presidents’ Day, Memorial

Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.




 




35     “Market Rental Rate” means, at the time of reference, the gross

rentable floor space of the Leased Premises multiplied by the greater of: (a)

taking into account concessions and allowances then available in the

marketplace, as applicable in the particular context, that annual rate of Basic

Rent per square foot of gross rentable floor space which is then being quoted

by the Landlord for comparable Other Leased Premises (or would then be quoted

if comparable Other Leased Premises were then available) or (b) that annual

rate of Basic Rent per square foot of gross rentable floor space in effect

during the last twelve (12) months of the Expiring Term.




 




36     “Municipality” means the Township of East Brunswick in Middlesex

County, New Jersey, or any successor municipality with jurisdiction over the

Property.




 




37     “Net Utilities Expenses” mean Electric Charges (other than

Tenant Electric Charges) and all charges for any other fuel that may be used in

providing electricity and services powered by electricity that the Landlord

provides in accordance with section 8 of this Agreement to the Building, the

Leased Premises, Other Leased Premises, the Common Facilities and the Property,

including sales and excise taxes and the like, but not including any mark-up by

the Landlord of the Landlord’s charges from the provider of such electricity

and services.




 




38     “No Pass Through Period” means, in the context of Operational

Expenses and Taxes, the period beginning on the Commencement Date and ending on

December 31, 2003.




 




39     “Nuisance” means any condition or occurrence which unreasonably

or materially interferes with the authorized use and enjoyment of the Other

Leased Premises and the Common Facilities by any tenant of Other Leased

Premises or by any person authorized to use any Other Leased Premises or Common

Facilities or with the 




 




5





























 




authorized use of any other areas, buildings or other

improvements in the Tower Center Complex.




 




40     “Operational Expenses” is defined in subsection 10.2 of this

Agreement.




 




41     “Option to Renew” is defined in section 6.1 of this Agreement.




 




42     “Other Leased Premises” means all premises within the Building,

with the exception of the Leased Premises, that are, or are available to be,

leased to tenants or prospective tenants, respectively.




 




43     “Parking Facilities” means the One Tower Center garage beneath

the Building, containing approximately 1,240 parking spaces, which is provided

during Regular Business Hours as Common Facilities.




 




44     “Person” includes an individual, a corporation, a partnership, a

limited liability company, a limited liability partnership, a trust, an estate,

an unincorporated group of persons and any group of persons.




 




45     “Property” means the parcel of land constituting a part of the

One Tower Center condominium unit in the Tower Center South Condominium, as it

may be increased, decreased, modified, altered or otherwise changed from time

to time before, during or after the Term, in accordance with the master deed,

as it may be amended, of the Tower Center South Condominium. As the Property is

presently constituted, it is more particularly described in Exhibit B attached

hereto.




 




46     “Punchlist” shall mean a single written list prepared by the

Architect at or about the date of achievement of Substantial Completion of the

Tenant’s Buildout, setting forth those faults, defects and omissions in the

Tenant’s Buildout, which are in the nature of minor or cosmetic faults, defects

and omissions, contemporaneous notice of which list is given to the Landlord.




 




47     “Regular Business Hours” means 8:00 A.M. to 6:00 P.M., Monday

through Friday, except on Legal Holidays.




 




48     “Re-Leasing Damages” is defined in subsection 23.3.




 




49     “Renewal Term” means, at the time of reference, any portion of

the Term, other than the Initial Term, as to which the Tenant has properly

exercised an Option to Renew.




 




50     “Rent” means Basic Rent and Additional Rent.




 




51     “Right to Lease Additional Space” is defined in section 44 of

this Agreement.




 




6





























 




52     “Security Deposit” is designated in section 29 of this

Agreement.




 




53    “Substantial Completion” means that the Tenant’s Buildout shall

have been substantially completed in accordance with the Tenant Plan, subject

only to the completion or correction of Punchlist items.




 




54     “Substantial Completion Date” means the date that Substantial

Completion of the Tenant’s Buildout shall have been achieved, adjusted to an

earlier date to compensate the Landlord for the cumulative number of days of

delay attributable to the Tenant Delay.




 




55     “Systems” means the building standard elevator, heating,

ventilation and air conditioning, electrical, plumbing and fire alarm and

suppression systems installed in the Building.




 




56     “Target Date” means, upon execution and delivery of this

Agreement, the then estimated Commencement Date which is hereby established to

be November 1, 2002.




 




57     “Taxes” means, in any calendar year, the aggregate amount of

real property taxes, assessments and sewer rents, rates and charges, state and

local taxes, transit taxes and every other governmental charge, whether general

or special, ordinary or extraordinary (except corporate franchise taxes and

taxes imposed on, or computed as a function of, net income or net profits from

all sources and except taxes charged, assessed or levied exclusively on the

Leased Premises or arising exclusively from the Tenant’s occupancy of the

Leased Premises) charged, assessed or levied by any taxing authority with

respect to the Property, the Building, the Common Facilities and any other

improvements on the Property and an Allocable Share of Taxes with respect to

other portions of the Tower Center Complex, less any refunds or rebates (net of

expenses incurred in obtaining any such refunds or rebates) of Taxes actually

received by the Landlord during such calendar year with respect to any period

during the Term for the benefit of the Tenant, tenants of Other Leased Premises

and the Landlord. If during the Term there shall be a change in the means or

methods of taxing real property generally in effect at the beginning of the

Term and another type of tax or method of taxation should be substituted in

whole or in part for, or in lieu of, Taxes, the amounts calculated under such

other types of tax or by such other methods of taxation shall also be deemed to

be Taxes. Until such time as the actual amount of Taxes for any calendar year

becomes known, the amount thereof shall be the Landlord’s estimate of Taxes for

that calendar year.




 




58     “Tenant” means the person so designated at the beginning of this

Agreement.




 




59     “Tenant Delay” means any period of delay encountered by the

Landlord or its general contractor selected to perform the 




 




7





























 




Tenant’s Buildout in achieving Substantial Completion

of the Tenant’s Buildout or the issuance of the Municipality’s building

permits, that is attributable to the following:  (i) the failure of the Tenant to deliver the final Tenant Plan to

the Landlord by the Tenant Plan Due Date; (ii) any changes made to the Tenant

Plan after the Tenant Plan Due Date; (iii); any labor dispute or disharmonious

labor relations with the Landlord’s general contractor, any of its

subcontractors or any of their sub-subcontractors (of any tier) involving any

direct contractor or other agent of the Tenant or any of its subcontractors or

any of their sub-subcontractors (of any tier) when performing any preparation

of the Initial Leased Premises; (iv) any work performed by or for the Tenant

(other than the Tenant’s Buildout), or any delay in the commencement or

performance or completion of any such work, which impedes the orderly

coordination, sequence and progress of the Tenant’s Buildout; (v) any flaw or

other deficiency in any work performed by any direct contractor of the Tenant

or any of its subcontractors or their sub-subcontractors (of any tier); (vi)

any failure of any direct contractor of the Tenant or any of its subcontractors

or their sub-subcontractors (of any tier) to properly connect and interface

with the Tenant’s Buildout including, without limiting the generality of, the

foregoing, the installation of the Tenant’s telephone and computer cabling and

equipment, partitions, furniture and fixtures and other installations not

included in the Tenant’s Buildout; (vii) any design error or omission in the

Tenant Plan; (viii) any delay in the Tenant’s Buildout encountered as a result

of attempting to integrate work of the Tenant’s direct contractors with the

Tenant’s Buildout; (ix) any suspension or stoppage of the Tenant’s Buildout at

the request or instance of the Tenant or any of its agents; (x) the lack of

completion or the lack of satisfactory completion of any work performed by any

direct contractor of the Tenant or any of its subcontractors or their

sub-subcontractors (of any tier) at any time when the Tenant’s Buildout (or any

portion thereof) is ready for any inspection or test required by the

Municipality regarding the Tenant’s Buildout; (xi) the existence of any long

lead time items in the Tenant’s Buildout of which the Landlord or the

Landlord’s architect shall have advised the Tenant or its construction manager

in writing prior to the commencement of the construction of the Tenant’s

Buildout and which the Tenant elects to retain in the Tenant’s Buildout; (xii)

any delay in the issuance of the Municipality’s Certificate of Occupancy as a

result of any alterations, improvements or other modifications made by or on

behalf of the Tenant in the Leased Premises (which shall be limited to the

installation of voice and data cabling and wiring) other than the Tenant’s

Buildout; (xiii) the request by the Tenant for materials, finishes or

installations other than Building Standard; (xiv) the failure of the Tenant to

timely name a qualified general contractor for the purpose of including it

among those invited to bid on the work called for by the Tenant Plan in

accordance with section 5 of this Agreement; and (xv) any other delay caused by

the Tenant or its design professionals, engineers, direct contractors,

employees or other agents of which 




 




8





























 




the Landlord shall have advised the Tenant or its

construction manager which is not cured at once.




 




60     “Tenant Electric Charges” means Electric Charges attributable to

the Tenant’s use of electricity in the Leased Premises for purposes other than

heating, ventilation and air conditioning provided to the Leased Premises by

the Landlord in accordance with subsection 8.2.4 of this Agreement.




 




61     “Tenant Plan” means construction drawings and related

construction specifications regarding the build-out of the Leased Premises

(with any construction drawings in a reproducible diazo sepia mylar form)

including, without limiting the generality of the foregoing, the information

called for by the Work Letter, signed and sealed by a New Jersey-licensed

architect, and also furnished on AutoCad, complying in all respects with all

applicable building and fire codes and insurance underwriting standards in

effect and, to the extent they are not inconsistent with this Agreement, with

the Landlord’s tenant construction specifications in effect and in sufficient

detail to permit the Municipality to issue any required building permits and to

permit skilled contractors to supply and perform the work called for therein.




 




62     “Tenant Plan Due Date” means July 1, 2002.




 




63     “Tenant’s Buildout” means the work to be performed by the

Landlord pursuant to this Agreement that is both called for by the Tenant Plan

and the Landlord’s pricing notice contemplated by section 5 of this Agreement.




 




64     “Tenant’s Certificate” means Exhibit G attached hereto.




 




65     “Tenant’s Current Lease” means that certain Lease dated May 6,

1993, by and between Shav Associates, a New Jersey partnership, as Landlord,

and Bio-Technology General Corporation, as Tenant, for leased premises located

on the entire second floor of 70 Wood Avenue South, Iselin, New Jersey, as

amended by First Amendment to Lease dated October 22, 1993, by Second Amendment

to Lease dated January 3, 1995 and by Third Amendment to Lease dated February

21, 1996.




 




66     “Tenant’s Share” of any amount means 13.17% percent, until such

time as there is any Additional Leased Premises, and thereon and thereafter the

quotient, expressed as a percentage, obtained by dividing the gross rentable

floor space of the Leased Premises at the time of reference by the gross

rentable floor space of the Building.




 




67     “Term” means the Initial Term plus, at the time of reference,

any Renewal Terms.




 




68     “Termination Damages” is defined in subsection 23.2 of this

Agreement.




 




9





























 




69     “Tower Center Complex” means the Tower Center South Condominium

and the Tower Center North Condominium.




 




70     “Tower Center North Condominium” means the condominium units

erected or being erected and known as the Upper Building Unit, the Lower

Building Unit and the Public Purpose Unit, together with their respective

grounds and common elements, if any, as they may be increased, decreased,

modified, altered or otherwise changed from time to time before, during or

after the Term, as set forth in the recorded master deed, as it may be amended,

of the Tower Center North Condominium.




 




71     “Tower Center South Condominium” means the condominium units

erected or being erected and known as One Tower Center (together with the

Property), Two Tower Center (together with its grounds) and the Hilton Hotel

(together with its grounds), together with their common elements, if any, as

they may be increased, decreased, modified, altered or otherwise changed from

time to time before, during or after the Term, as set forth in the recorded

master deed, as it may be amended, of the Tower Center South Condominium.




 




72     “Transaction Costs” means, in the context of any subletting of

the Leased Premises or any portion thereof to a sublessee that is not an

Affiliate of the Tenant, or in the context of any assignment of this Agreement

to an assignee that is not an Affiliate of the Tenant, any of the

following:  (a) a reasonable brokerage

commission and advertising expenses; (b) reasonable third party legal expenses

incurred in connection with the respective transaction; and (c) (i) reasonable

amounts paid by the Tenant to or on behalf of an assignee or sublessee

exclusively as an allowance for improvements made to the Leased Premises, (ii)

rental concessions granted by the Tenant to an assignee or sublessee, or (iii)

reasonable costs incurred by the Tenant for performing alterations,

improvements and other modifications for an assignee or sublessee, for the

purpose of inducing the sublessee or assignee to enter the subject transaction.




 




73     “Upper Building Unit” means the condominium unit in the Tower

Center North Condominium parking facility which is known as the Upper Building

Unit and which is more specifically described in the master deed,  as

it may be amended, of the Tower Center North Condominium.




 




10





























 




EXHIBIT

F




 




JANITORIAL SERVICES DESCRIPTION




 




LEASED PREMISES




 




Nightly:




 




1                                          Vacuum

clean carpets and rugs.




 




2                                          Empty

all wastepaper baskets.  Cleaners will

not remove and/or clean tea or coffee cups or similar containers; also, if such

liquids are spilled in wastebaskets, the wastebaskets will be emptied but not

otherwise cleaned. Cartons or refuse in excess of that which can be placed in

wastebaskets will not be removed. 

Tenants are required to make arrangements with the building manager for

the disposal of such unusual refuse, for which the Tenant may incur additional

charges.




 




3                                          Remove

waste paper and waste material to a designated area in the building.




 




4                                          Dust

and wipe clean all desks, furniture, windowsills and chair rails.




 




5                                          Wash/clean

all water fountains.




 




Monthly:




 




1                                          Do

high dusting including all venetian blinds and pictures, frames and similar

wall hangings not reached in nightly cleaning.




 




2                                          Dust

exterior of all wall mounted lighting fixtures.




 




3                                          Dust

any door louvers.




 




4                                          Wash

and wax all resilient flooring in office area.




 




LAVATORIES:




 




Nightly:




 




1                                          Sweep

and wash all flooring.




 




2                                          Wash

and polish all mirrors, powder shelves, etc.




 




3                                          Wash

both sides of all toilet seats.




 




4                                          Dust

all partitions, tile walls, dispensers and receptacles.




 




1





























 




5                                          Remove

waste paper and refuse to designated area in the building.




 




6                                          Fill

toilet tissue holders, soap dispensers and towel dispensers.




 




Monthly:




 




1                                          Machine

scrub flooring.




 




2                                          Wash

all partitions, tile walls and enamel surfaces.




 




3                                          Dust

exterior of all wall mounted lighting fixtures.




 




4                                          Do

all high dusting.




 




MAIN LOBBY,

ELEVATORS AND CORRIDORS:




 




Nightly:




 




1                                          Vacuum

entrance lobby and corridors.




 




2                                          Spot

for stains.




 




3                                          Vacuum

elevator floor.




 




4                                          Elevator

cab to be wiped clean and polished.




 




DAY CUSTODIAN:




 




Daily:




 




1                                          Clean

and sanitize lavatories.




 




2                                          Empty

and clean paper towel and sanitary disposal receptacles and refill same.




 




3                                          Keep

public areas in neat and orderly condition at all times.




 




4                                          Wash

lobby entrance door windows in and out.




 




5                                          Keep

parking lot area free of papers and general debris.




 




6                                          Custodian

shall be available for special tasks and shall fix minor problems that arise in

the building as assigned by Boston Properties management personnel, such as

cleaning up spills, changing light tubes, etc.




 




SCHEDULE OF

CLEANING SERVICES:




 




Day Custodian:




 




1                                          Day

custodian services as listed herein, shall be performed five(5) days per week

(Monday through Friday) except on Boston Properties Management’s legal Holiday

Schedule.




 




2





























 




2                                          Daily

working hours:  7:30 a.m. –  4:00 p.m.




 




Night Cleaners:




 




1                                          All

night cleaning service, as listed herein, shall be performed five(5) nights per

week (Monday through Friday), except on Boston Properties Management’s legal

Holiday Schedule.




 




3





























 




EXHIBIT

G




 




TENANT’S CERTIFICATE




 




SCV Partners




c/o Boston Properties




302 Carnegie Center




Princeton, New Jersey 08540




 




Re:   Lease

dated May 6, 1993, by and between Shav Associates, a New Jersey partnership, as

Landlord, and Bio-Technology General Corporation, as Tenant, for leased

premises located on the entire second floor of 70 Wood Avenue South, Iselin,

New Jersey, as amended by First Amendment to Lease dated October 22, 1993, by

Second Amendment to Lease dated January 3, 1995 and by Third Amendment to Lease

dated February 21, 1996.




 




Ladies and Gentlemen:




 




The undersigned, as Tenant, under the Lease, and as

amended as set forth above hereby certifies that:




 




1.                                       the

“Commencement Date” of the Lease is November 1993; and




 




2.                                       the

current base rental payable pursuant to the terms of said Lease is $454,520.00

per annum ($37,876.66 per month); and further, the aggregate additional rental

payable under sections 5.02, 5.05 and 15.01 pursuant to said Lease is currently

equal to: 

                        per

annum  (            per

month) (estimated); and




 




3.                                       said

Lease is in full force and effect and has not been assigned, modified,

supplemented or amended in any way (except as set forth above), and neither

party thereto is in default thereunder; and




 




4.                                       the

Lease described above represents the entire agreement between the parties as to

the leasing of the premises; and




 




5.                                       the

“Expiration Date” of the Lease is October 31, 2003;




 




6.                                       Tenant

has no options to extend or renew the term of the Lease, except as follows: two

(2) five (5) year renewal terms, and the Tenant has neither requested an

extension of the Term nor exercised any option to renew the Lease; and




 




1





























 




7.                                       all

conditions under said Lease to be performed by the Landlord have been

satisfied; and




 




8.                                       on

this date there are no existing defenses or offsets, claims or counterclaims

which the undersigned has against the enforcement of said Lease by the

Landlord. No event has occurred and no condition exists, which with the giving

of notice or the passage of time, or both, will constitute a default under the

Lease; and




 




9.                                       no

rental has been paid in advance; and




 




10.                                 Tenant’s

floor area is 23,098 rentable square feet; and




 




11.                                 the

most recent payment of current basic rental was for the payment due on

                         ,

2002, and all basic rental and additional rental payable pursuant to the terms

of the Lease have been paid up to said date; and




 




12.                                 Tenant

has no option or right to expand the premises under the Lease, or terminate the

Lease, except as set forth in the Lease; and




 




13.                                 All

loans made to the Tenant by the Landlord have been paid off in full; and




 




14.                                 Attached

is a true and complete copy of the Lease and all amendments thereto; and




 




15.                                 the

undersigned represents and warrants that he or she is authorized to execute and

deliver this  Certificate on behalf of

Tenant.




 




IN WITNESS WHEREOF, this certificate has been duly executed and

delivered by the undersigned this

               day

of                            

, 2002.




 




	

   


  	

  Very truly yours,


  
	

   


  	

   


  
	

   


  	

   


  
	

   


  	

  Bio-Technology General Corp.


  
	

   


  	

   


  
	

   


  	

   


  
	

   


  	

  By:


  	

   


  	

   


  
	

   


  	

   


  
	

   


  	

  Name:


  	

   


  	

   


  
	

   


  	

   


  
	

   


  	

  Title:


  	

   


  	

   


  
						





 




2





























 




AMENDMENT NO. 1 TO LEASE

AND LEASE AGREEMENT




 




AMENDMENT NO. 1, dated as of October 18, 2002, between SCV PARTNERS, a

New Jersey general partnership, with offices at c/o Boston Properties at 302

Carnegie Center, Princeton, New Jersey 08540 (the “Landlord”), and

BIO-TECHNOLOGY GENERAL CORP., a Delaware corporation, with its principal office

at 70 Wood Avenue South, Iselin, New Jersey 08830 (“Tenant”), to the LEASE AND

LEASE AGREEMENT, dated as of June 11, 2002, between SCV Partners, a New Jersey

general partnership, and Bio-Technology General Corp., a Delaware corporation

(the “Lease”).




 




Background.  Pursuant to the Lease, the Landlord is

obligated to pay certain rental obligations of the Tenant under the Tenant’s

Current Lease. The Landlord and the Tenant desire that in lieu of said

Landlord’s obligations, the Landlord shall increase the amount of tenant

improvement allowance available to the Tenant under the Lease. The purpose of

this Amendment is to set forth the terms and conditions of the foregoing.




 




1  Certain terms and phrases (generally those

whose first letters are capitalized) that are defined in the Lease shall retain

their definitions set forth in the Lease, except to the extent they may be

deleted or modified in this Amendment.




 




2  The Landlord and the Tenant hereby amend the

Lease as follows, subject to all the terms and conditions set forth below:




 




2.1  Subsection 44.8 of the Lease is hereby

amended by deleting it in its entirety and substituting the following therefor:




 




44.8  If (a)(i)

no Event of Default shall have occurred or (ii) if an Event of Default shall

have occurred, the Tenant shall have previously cured it in full or the

Landlord shall have waived it, (b) if there shall not have been a History of

Recurring Events of Default, and (c) the Tenant no longer occupies or uses any

portion of the leased premises subject to the Tenant’s Current Lease to conduct

the Tenant’s business within ten (10) days after the Commencement Date, the

Landlord shall, subject to the terms and conditions set forth in this

Agreement, increase the amount of $1,333,500.00 as set forth in subsection 44.1

of this Agreement, by the amount of Five Hundred Thirty Nine Thousand

($539,000.00) Dollars (“Additional TIA”). 

The amount of $539,000.00 is calculated based upon the Tenant no longer

occupying or using any portion of the leased premises subject to the Tenant’s

Current Lease to conduct the Tenant’s business on or before November 11, 2002.  The Additional TIA 




 




1





























 




shall be subject to adjustment as follows:  (a) The Additional TIA shall be increased by the amount of One

Thousand Four Hundred Sixty Seven ($1,467.00) Dollars for each day by which the

date on which the Tenant no longer occupies or uses any portion of the leased

premises subject to the Tenant’s Current Lease to conduct the Tenant’s business

precedes November 1, 2002; and (b) The Additional TIA shall be decreased by the

amount of One Thousand Four Hundred Sixty Seven ($1,467.00) Dollars for each

day by which the date on which the Tenant no longer occupies or uses any

portion of the leased premises subject to the Tenant’s Current Lease to conduct

the Tenant’s business occurs later than November 11, 2002. The Additional TIA,

as adjusted herein, shall be effective (i.e., shall be added to the amount of

$1,333,500.00 as set forth in subsection 44.1 of this Agreement) upon the

Tenant notifying the Landlord as to the date on which the Tenant no longer

occupies or uses any portion of the leased premises subject to the Tenant’s

Current Lease to conduct the Tenant’s business.




 




44.8.1  As

consideration for the obligations of the Landlord under subsection 44.8 of this

Agreement, the Tenant shall pay to the Landlord, fifty (50%) percent of the

following amounts:




 




44.8.1.1  all

rents and other consideration received from any sublessee, licensee or other

occupant of the subject leased premises of the Tenant’s Current Lease, within

ten (10) days after its receipt by the Tenant;




 




44.8.1.2  all

amounts saved by the Tenant resulting from the termination of the Tenant’s

Current Lease prior to its current scheduled expiration date of October 31,

2003, within ten (10) days after the effective date of such termination. The

Tenant shall provide the Landlord with the calculations of such savings

together with said payment; and




 




44.8.1.3  all

amounts saved by the Tenant resulting from the re-negotiation of the terms of

the Tenant’s Current Lease which are more favorable to the Tenant or resulting

from the release of the Tenant by the landlord of the Tenant’s Current Lease

from any other obligations of the Tenant to said landlord, within ten (10) days

after the effective date of an amendment or other document containing such

re-negotiated terms or release. The Tenant shall provide the Landlord with the

calculations of such savings together with said payment; and




 




44.8.1.4  all

amounts saved by the Tenant resulting from the assignment by the Tenant to a

third party of 




 




2





























 




all the Tenant’s right, title and interest in and to the Tenant’s

Current Lease, within ten (10) days after the effective date of such

assignment. The Tenant shall provide the Landlord with the calculations of such

savings together with said payment.




 




44.8.2  As a

condition to the Landlord performing its obligations under this subsection

44.8, the Tenant shall execute and deliver to the Landlord, on the date on

which the Tenant no longer occupies or uses any portion of the leased premises

subject to the Tenant’s Current Lease to conduct the Tenant’s business, the

Tenant’s Certificate dated as of such date, containing the terms and in the

form of Exhibit G attached hereto. The Landlord may, at its option, confirm the

date on which the Tenant no longer occupies or uses any portion of the leased

premises subject to the Tenant’s Current Lease to conduct the Tenant’s business

by conducting an inspection of said leased premises.  Within one (1) business day after the Landlord requests, the

Tenant shall provide to the Landlord access to said leased premises for the

purpose of such inspection.




 




2.2  Paragraph 8 of Exhibit G to the Lease is

hereby amended by deleting it in its entirety and substituting the following

therefor:




 




“8.           on this date there are no existing

defenses or offsets, claims or counterclaims which the undersigned has against

the enforcement of said Lease by the Landlord. No event has occurred and no

condition exists, which with the giving of notice or the passage of time, or

both, will constitute a monetary default under the Lease; and”




 




3  As amended by this Amendment,

the Lease continues in full force and effect as the Agreement.




 




IN WITNESS WHEREOF, the parties hereto have caused

this




 




3





























 




Amendment to be executed as of the date first above written.




 




	

   


  	

  LANDLORD:


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  SCV

  Partners


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  By:


  	

  Boston Properties Limited Partnership, a general

  partner


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  Boston Properties, Inc., its general partner


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  /s/ Mitchell

  Landis,


  	

   


  
	

   


  	

   


  	

  Mitchell Landis,


  	

   


  
	

   


  	

   


  	

  Senior Vice President


  	

   


  
	

   


  	

   


  	

   


  	 

	

   


  	

  By:


  	

  Boston Properties, L.L.C., a general partner


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  Boston Properties Limited Partnership, its managing

  member


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  Boston Properties, Inc., its general partner


  	

   


  
	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

  By:


  	

  /s/ Mitchell

  Landis,


  	

   


  
	

   


  	

   


  	

  Mitchell Landis,


  	

   


  	 

	

   


  	

   


  	

  Senior Vice President


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  TENANT:


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  Bio-Technology

  General Corp.


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  By:


  	

    /s/ Robert M. Shaw


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  Name:


  	

  Robert

  M. Shaw


  	

   


  	 

	

   


  	

   


  	

   


  	 

	

   


  	

  Title:


  	

  Senior Vice President,

  General Counsel and Secretary


  	

   


  	 

																





 




4