Document:

Exhibit 10.2

 

ALLOS THERAPEUTICS, INC.

EMPLOYMENT AGREEMENT

 

JAMES V. CARUSO

 

THIS
EMPLOYMENT AGREEMENT (the “Agreement”)
is entered into effective as of June 5, 2006, (“Effective
Date”) by and between ALLOS THERAPEUTICS, INC.,
(the “Company”), and JAMES V. CARUSO (“Executive”) (collectively, the “Parties”).

 

WHEREAS, the Company wishes to employ
Executive on the terms set forth herein; and

 

WHEREAS, Executive
wishes to be so employed under the terms set forth herein.

 

NOW,
THEREFORE, in consideration of the promises, mutual
covenants, the above recitals, and the agreements herein set forth, and for
other good and valuable consideration, the sufficiency of which is hereby
acknowledged, the Parties agree to the following terms and conditions of
Executive’s employment:

 

1.                                      EMPLOYMENT.
The Company hereby agrees to employ Executive as Executive
Vice President, Chief Commercial Officer and Executive hereby accepts such employment upon the terms and
conditions set forth herein as of the date first written above. Executive shall
commence employment with the Company on June 5, 2006 (“Start Date”).

 

2.                                      AT-WILL
EMPLOYMENT. It is understood and agreed by the Company and
Executive that this Agreement does not contain any promise or representation
concerning the duration of Executive’s employment with the Company. Executive
specifically acknowledges that his employment with the Company is at-will and may be
altered or terminated by either Executive or the Company at any time, with or
without cause and/or with or without notice. The nature, terms or conditions of
Executive’s employment with the Company cannot be changed by any oral
representation, custom, habit or practice, or any other writing. In addition,
that the rate of salary, any bonuses, paid time off, other compensation, or
vesting schedules are stated in units of years or months does not alter the
at-will nature of the employment, and does not mean and should not be
interpreted to mean that Executive is guaranteed employment to the end of any
period of time or for any period of time. In
the event of conflict between this disclaimer and any other statement, oral or
written, present or future, concerning terms and conditions of employment, the
at-will relationship confirmed by this disclaimer shall control. This at-will
status cannot be altered except in writing signed by Executive and the Chairman
of the Board of Directors.

 

3.                                      DUTIES.
Executive shall render full-time services to the Company as the Executive
Vice President, Chief Commercial Officer of the Company (together with such
other position or positions consistent with Executive’s title as the Board
shall specify from time to time) and shall have such duties typically
associated with such title. Subject to the foregoing, Executive also agrees to
serve as an officer and/or director of the Company or any parent or subsidiary
of the Company, as specified by the Board, in each case without additional
compensation. Employee shall report directly and exclusively to the Chief
Executive Officer of the Company. Subject to the terms and conditions set forth
in this Agreement, Executive shall devote his full business time, attention,
and efforts to the performance of his duties under this Agreement and shall not
engage in any other business or occupation during his employment with 

 

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the
Company pursuant to this Agreement, including, without limitation, any activity
that (a) conflicts with the interests of the Company or its subsidiaries, (b) interferes
with the proper and efficient performance of his duties for the Company, or (c) interferes
with the exercise of his judgment in the Company’s best interests. Notwithstanding
the foregoing, nothing herein shall preclude Executive from (i) serving,
with the prior written consent of the Board, as a member of the board of
directors or advisory boards (or their equivalents in the case of a
non-corporate entity) of non-competing businesses and charitable organizations,
(ii) engaging in charitable activities and community affairs, and (iii) subject
to the terms and conditions set forth in the Confidentiality Agreement (as
defined below), managing his personal investments and affairs; provided,
however, that the activities set out in clauses (i), (ii) and (iii) shall
be limited by Executive so as not to materially interfere, individually or in
the aggregate, with the performance of his duties and responsibilities
hereunder.

 

4.                                      POLICIES
AND PROCEDURES. Executive agrees that he is subject to and will comply with
the policies and procedures of the Company, as such policies and procedures may be
modified, added to or eliminated from time to time at the sole discretion of
the Company, except to the extent any such policy or procedure specifically
conflicts with the express terms of this Agreement. Executive further agrees
and acknowledges that any written or oral policies and procedures of the
Company do not constitute contracts between the Company and Executive.

 

5.                                      COMPENSATION.
For all services rendered and to be rendered hereunder, the Company agrees
to pay to the Executive, and the Executive agrees to accept a base salary of $365,000
per annum (“Base Salary”). Any such salary
shall be payable in equal biweekly installments and shall be subject to such
deductions or withholdings as the Company is required to make pursuant to law,
or by further agreement with the Executive. Executive’s salary shall be subject
to annual review and adjustment by the Compensation Committee of the Board of
Directors.

 

6.                                      ANNUAL
BONUS. Executive will be eligible to participate in the Company’s Annual
Incentive Plan pursuant to which Executive will be eligible for an annual
incentive bonus, based 100% on the achievement of corporate goals, in an amount
equal to 35% of Executive’s base salary (“Annual  Bonus”). Executive’s Annual Bonus for 2006
shall be prorated based on the number of days Executive is employed by the
Company during such calendar year. Except as expressly provided otherwise
herein, Executive must remain employed with the Company throughout the
applicable fiscal year in order to be eligible for any Annual Bonus. The
Compensation Committee of the Board of Directors, in its sole discretion, shall
determine the extent to which Executive has achieved the performance targets
upon which Executive’s Annual Bonus is based, and the amount of Annual Bonus to
be paid to Executive, if any. Annual Bonuses are not earned until they are
approved in writing by the Compensation Committee of the Board of Directors. Executive’s
Annual Bonus, if any, shall be paid to Executive at the same time as annual
bonuses are generally payable to other senior executives of the Company, but in
no event later than the date which is two and one-half (2 1⁄2) months following
the end of the fiscal year to which such Annual Bonus relates.

 

7.                                      RELOCATION.
Subject to the submission of properly documented receipts, the Company shall
reimburse Executive up to a maximum of $150,000 for the following relocation
costs: (i) customary closing costs incurred by Executive in connection
with the sale of his current residence in New Jersey, including brokerage
commissions and reasonable attorneys’ fees, (ii)

 

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customary
closing costs incurred by Executive in connection with the purchase of a new
residence in the Boulder or Denver (Colorado) metropolitan area, (iii) customary
and reasonable costs of moving Executive and his family, including their
personal effects, to their new residence in Colorado; and (iv) customary
and reasonable commuting and temporary living expenses for Executive and his
family for up to six months following his commencement of employment with the
Company (collectively, the “Reimbursement Amount”).
Also, to the extent that
the Reimbursement Amount is taxable as income to Executive, upon substantiation
of the amount of income tax imposed on the Reimbursement Amount, the Company
shall pay Executive an amount equal to such tax (the “First
Iteration Tax Payment”), provided that the Company shall not “gross-up”
or otherwise pay Executive’s tax on the First Iteration Tax Amount. In order to be eligible for any relocation reimbursement, Executive must relocate his
residence and personal effects to Colorado within twelve months following his
commencement of employment with the Company. The Company makes no
representations regarding the proper tax treatment of Executive’s reimbursed
relocation costs and Executive is responsible for obtaining independent advice
from his own personal tax advisor.

 

8.                                      STOCK
OPTIONS. Subject to the approval of the Compensation Committee of the Board
of Directors, on or shortly following the Start Date, the Company shall grant Executive
a non qualified option to purchase 350,000 shares of the Company’s Common Stock
under the Company’s 2006 Inducement Award Plan (the “2006 Plan”) at an exercise price equal to the closing sale
price of the Company’s Common Stock as reported on the NASDAQ National Market
on the date of grant. The options will vest over a four (4) year period,
with 25% of such options vesting one (1) year after the date of grant, and
the remaining 75% of such options vesting in equal monthly installments
thereafter over the next three (3) years. The options will be subject to
the terms and conditions of the 2006 Plan and the Company’s standard form of
stock option agreement thereunder, copies of which have been provided to
Executive.

 

9.                                      RESTRICTED
STOCK. Subject to the approval of the Compensation Committee of the Board
of Directors, on or shortly following the Start Date, the Company shall grant Executive
110,000 shares of restricted stock of the Company (the “Restricted
Stock”) under the 2006 Plan. The Restricted Stock shall vest in four
equal installments on each of the first four anniversaries of the Effective
Date, subject to Executive’s continuous employment through such vesting dates. The
Restricted Stock shall be subject to the terms and conditions of the 2006 Plan
and the Company’s standard form of restricted stock grant agreement thereunder,
copies of which have been provided to Executive.

 

10.                               OTHER
BENEFITS. While employed by the Company as provided herein:

 

(a)                                  Executive
and Employee Benefits. The
Executive shall be entitled to all benefits to which other executive officers
of the Company are entitled, on terms comparable thereto, including, without
limitation, participation in the 401(k) plan, group insurance policies and
plans, medical, health, vision, and disability insurance policies and plans,
and the like, which may be maintained by the Company for the benefit of
its executives. The Company reserves the right to alter and amend the benefits
received by Executive from time to time at the Company’s discretion.

 

(b)                                  Out-of-Pocket
Expense Reimbursement. The Executive shall receive, against presentation of
proper receipts and vouchers, reimbursement for direct and reasonable
out-of-pocket expenses incurred by him in connection with the performance of
his duties 

 

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hereunder,
according to the policies of the Company.

 

(c)                                  Personal
Time Off. The Executive shall be entitled to the same number of holidays
and sick days as are generally allowed to executive officers of the Company and
to the maximum amount of vacation allowed to executive officers of the Company,
in accordance with Company policies in effect from time to time.

 

11.                               PROPRIETARY
AND OTHER OBLIGATIONS. Executive acknowledges that signing and complying
with the Company’s standard form of Manager, Executive Personnel or
Assistants’ Proprietary Information, Inventions, Non-Competition and
Non-Solicitation Agreement (“Confidentiality
Agreement”), in substantially the form provided to Executive, is
a condition of his employment by the Company. Executive therefore agrees to
sign and comply with the Confidentiality Agreement and acknowledges that by
beginning employment with the Company, he will be deemed to have signed and
agreed to the provisions of the Confidentiality Agreement, including,
without limitation, the non-competition and non-solicitation obligations set
forth therein. Executive further agrees that all Company-related
business procured by the Executive, and all Company-related business
opportunities and plans made known to Executive while employed by the Company,
are and shall remain the permanent and exclusive property of the Company.

 

12.                               TERMINATION.
Executive and the Company each acknowledge that either party has the right
to terminate Executive’s employment with the Company at any time for any reason
whatsoever, with or without cause or advance notice pursuant to the following:

 

(a)                                  Termination
by Death or Disability. Subject to applicable state or federal law, in the
event Executive shall die during the period of his employment hereunder or
become permanently disabled, as evidenced by notice to the Company and
Executive’s inability to carry out his job responsibilities for a continuous
period of more than three months, Executive’s employment and the Company’s
obligation to make payments hereunder shall terminate on the date of his death,
or the date upon which, in the sole determination of the Board of Directors,
Executive has failed to carry out his job responsibilities for three months,
except that the Company shall pay Executive’s estate any salary earned but
unpaid prior to termination, all accrued but unused vacation and any business
expenses that were incurred but not reimbursed as of the date of termination. Vesting
of any unvested stock options shall cease on the date of termination.

 

(b)                                  Voluntary
Resignation by Executive. In the event Executive voluntarily terminates his
employment with the Company (other than for Good Reason (as defined below)),
the Company’s obligation to make payments hereunder shall cease upon such
termination, except that the Company shall pay Executive any salary earned but
unpaid prior to termination, all accrued but unused vacation and any business
expenses that were incurred but not reimbursed as of the date of termination. Vesting
of any unvested stock options shall cease on the date of termination.

 

(c)                                  Termination
for Just Cause. In the event the Executive is terminated by the Company for
Just Cause (as defined below), the Company’s obligation to make payments
hereunder shall cease upon the date of receipt by Executive of written notice
of such termination (the “date of termination”
for purposes of this Section 12(c)), except that the Company shall pay
Executive any salary earned but unpaid prior to termination, all accrued but
unused vacation 

 

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and
any business expenses that were incurred but not reimbursed as of the date of
termination. Vesting of any unvested stock options shall cease on the date of
termination.

 

(d)                                  Termination
by the Company without Just Cause or Resignation for Good Reason (Other Than
Change in Control). The Company shall have the right to terminate Executive’s
employment with the Company at any time without Just Cause. In the event
Executive is terminated by the Company without Just Cause or Executive resigns
for Good Reason (other than in connection with a Change in Control (as defined
below)), and upon the execution of a full general release by Executive (“Release”), in the form attached hereto as Exhibit A, releasing all claims known
or unknown that Executive may have against the Company as of the date
Executive signs such release, and upon the written acknowledgment of his
continuing obligations under the Confidentiality Agreement, Executive shall be
entitled to receive the following severance benefits: (i) continuation of
Executive’s base salary, then in effect, for a period of twelve (12) months
following the date of termination, paid on the same basis and at the same time
as previously paid or as otherwise required
under Section 15 of this Agreement; (ii) payment of any
accrued but unused vacation and sick leave; and (iii) the Company shall
pay the premiums of Executive’s group health insurance COBRA continuation
coverage, including coverage for Executive’s eligible dependents, for a maximum
period of twelve (12) months following the date of termination; provided, however, that (a) the Company shall pay
premiums for Executive’s eligible dependents only for coverage for which those
eligible dependents were enrolled immediately prior to the termination without
Just Cause or resignation for Good Reason and (b) the Company’s obligation
to pay such premiums shall cease immediately upon Executive’s eligibility for
comparable group health insurance provided by a new employer of Executive.

 

(e)                                  Change
in Control Severance Benefits. In the event that the Company (or any
surviving or acquiring corporation) terminates Executive’s employment without
Just Cause or Executive resigns for Good Reason within one (1) month prior
to or thirteen (13) months following the effective date of a Change in Control
(a “Change in Control Termination”),
and upon the execution of a Release, Executive shall be entitled to receive the
following Change in Control severance benefits: (i) continuation of
Executive’s base salary, then in effect, for a period of eighteen (18) months following
the date of termination, paid on the same basis and at the same time as
previously paid or as otherwise required under Section 15
of this Agreement; (ii) payment of any accrued but unused
vacation and sick leave; (iii) a bonus in the amount equal to the Annual
Bonus amount paid to Executive in the year immediately preceding the Change in
Control or 50% of the maximum bonus eligibility if the Executive was not
employed by the Company during the prior year bonus period; and (iv) the
Company (or any surviving or acquiring corporation) shall pay the premiums of
Executive’s group health insurance COBRA continuation coverage, including
coverage for Executive’s eligible dependents, for a maximum period of eighteen
(18) months following a Change in Control Termination; provided,
however, that (a) the Company (or any surviving or acquiring
corporation) shall pay premiums for Executive’s eligible dependents only for
coverage for which those eligible dependents were enrolled immediately prior to
the Change in Control Termination and (b) the Company’s (or any surviving
or acquiring corporation’s) obligation to pay such premiums shall cease
immediately upon Executive’s eligibility for comparable group health insurance
provided by a new employer of Executive. If
Executive obtains new employment pursuant to which he is employed on an average
of 30 hours or more each week, he may request, upon written notification
to the 

 

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Company (or any surviving or acquiring
corporation), to receive any unpaid
severance benefits (subject to required deductions and tax withholdings) within
14 days after receipt by the Company of such written notice. Executive
agrees that the Company’s (or any surviving or acquiring corporation) payment
of health insurance premiums will satisfy its obligations under COBRA for the
period provided. The vesting and/or exercisability of Executive’s then
outstanding stock options and restricted stock in connection with a Change in
Control Termination shall be governed by the terms of the respective stock
option and restricted stock agreements.

 

In addition,
notwithstanding anything contained in Executive’s stock option or restricted
stock grant agreements to the contrary, in the event the Company (or any
surviving or acquiring corporation) terminates Executive’s employment without
Just Cause or Executive resigns for Good Reason within one (1) month prior
to or thirteen (13) months following the effective date of a Change in Control,
and any surviving corporation or acquiring corporation assumes Executive’s
stock options and/or restricted stock, as applicable, or substitutes similar stock
options or stock awards for Executive’s stock options and/or restricted stock,
as applicable, in accordance with the terms of the Company’s equity incentive
plans, then (i) the vesting of all of Executive’s stock options and/or
restricted stock (or substitute stock options or stock awards), as applicable, shall
be accelerated in full and (ii) the term and the period during which Executive’s
stock options may be exercised shall be extended to twelve (12) months
after the date of Executive’s termination of employment; provided, that, in no event shall such
options be exercisable after the expiration date of such options as set forth
in the stock option grant notice and/or agreement evidencing such options.

 

13.                               Definitions.

 

(a)                                  Just
Cause. As used in this Agreement, “Just
Cause” shall mean the occurrence of one or more of the following: (i) Executive’s
conviction of a felony or a crime involving moral turpitude or dishonesty; (ii) Executive’s
participation in a fraud or act of dishonesty against the Company; (iii) Executive’s
intentional and material damage to the Company’s property; (iv) material
breach of Executive’s employment agreement, the Company’s written policies, or
the Confidentiality Agreement that is not remedied by Executive within fourteen
(14) days of written notice of such breach from the Board of Directors; or (v) conduct
by Executive which demonstrates Executive’s gross unfitness to serve the
Company as Executive Vice President, Chief Commercial Officer, as determined in
the sole discretion of the Board of Directors. Executive’s physical or mental
disability or death shall not constitute cause hereunder.

 

(b)                                  Good
Reason. As used in this Agreement, “Good
Reason” shall mean any one of the following events which occurs on
or after the commencement of Executive’s employment without Executive’s
consent:  (i) any reduction of
Executive’s then existing annual salary base or annual bonus target by more
than ten percent (10%), unless the Executive accepts such reduction in
compensation opportunity or such reduction is done in conjunction with similar
reductions for similarly situated executives of the Company; (ii) any
request by the Company (or any surviving or acquiring corporation) that the
Executive relocate to a work site that would increase Executive’s one-way
commute distance by more than thirty-five (35) miles from his then principal
residence in Colorado, unless the Executive accepts such relocation
opportunity; or (iii) for purposes of Section 12(e) only, if the
Company or any surviving corporation following a 

 

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Change
in Control fails to offer the Executive a position that is equivalent in pay,
benefits and responsibilities.

 

(c)                                  Change
in Control. As used in this Agreement, a “Change
in Control” is defined as: (a) a sale, lease, exchange or other
transfer in one transaction or a series of related transactions of all or
substantially all of the assets of the Company (other than the transfer of the
Company’s assets to a majority-owned subsidiary corporation); (b) a merger
or consolidation in which the Company is not the surviving corporation (unless
the holders of the Company’s outstanding voting stock immediately prior to such
transaction own, immediately after such transaction, securities representing at
least fifty percent (50%) of the voting power of the corporation or other
entity surviving such transaction); (c) a reverse merger in which the
Company is the surviving corporation but the shares of the Company’s common
stock outstanding immediately preceding the merger are converted by virtue of
the merger into other property, whether in the form of securities, cash or
otherwise (unless the holders of the Company’s outstanding voting stock
immediately prior to such transaction own, immediately after such transaction,
securities representing at least fifty percent (50%) of the voting power of the
Company); or (d) any transaction or series of related transactions in
which in excess of 50% of the Company’s voting power is transferred.

 

14.                               TERMINATION
OF COMPANY’S OBLIGATIONS. Notwithstanding any provisions in this Agreement
to the contrary, the Company’s obligations, and Executive’s rights pursuant to
Sections 12(d) and 12(e) herein, regarding salary continuation and
the payment of COBRA premiums, shall cease and be rendered a nullity
immediately should Executive fail to comply with the provisions of the
Confidentiality Agreement or if Executive directly or indirectly competes with
the Company.

 

15.                               CODE
SECTION 409A COMPLIANCE. Because of the uncertainty of the application
of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), to payments pursuant to this Agreement, including,
without limitation, payments pursuant to Section 12 hereof, Executive
agrees that if any such payments are subject to the provisions of Section 409A
of the Code by reason of this Agreement, or any part thereof, being
considered a “nonqualified deferred compensation plan” pursuant to Section 409A
of the Code, then such payments shall be made in accordance with, and this
Agreement automatically shall be amended to comply with, Section 409A of
the Code, including, without limitation, any necessary delay of six (6) months
applicable to payment of deferred compensation to a “specified employee” (as
defined in Section 409A(2)(B)(i) of the Code) upon separation from
service. In the event that a six month delay is required, on the first
regularly scheduled pay date following the conclusion of the delay period the
Executive shall receive a lump sum payment in an amount equal to six (6) months
of Executive’s Base Salary and thereafter, any remaining severance benefits
shall be paid on the same basis and at the same time as previously paid and
subject to employment tax withholdings and deductions.

 

16.                               INDEMNIFICATION.
On the Start Date, the Company and Executive shall enter into the Company’s
standard form of indemnification agreement for executive officers, in substantially
the form provided to Executive.

 

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17.                               MISCELLANEOUS.

 

(a)                                  Taxes.
Except as specifically set forth
herein, Executive agrees to be responsible for the payment of any taxes
due on any and all compensation, stock option, restricted stock or other benefits
provided by the Company pursuant to this Agreement. Executive acknowledges and
represents that the Company has not provided any tax advice to him in
connection with this Agreement and that he has been advised by the Company to
seek tax advice from his own tax advisors regarding this Agreement and
payments that may be made to him pursuant to this Agreement,
including specifically, the application of the provisions of Section 409A
of the Code to such payments.

 

(b)                                  Legal
Fees. The Company shall pay all reasonable legal fees incurred by Executive
in connection with the negotiation of the terms of this Agreement in an amount
up to a maximum of $15,000.

 

(c)                                  Modification/Waiver.
This Agreement may not be amended, modified, superseded, canceled,
renewed or expanded, or any terms or covenants hereof waived, except by a
writing executed by each of the parties hereto or, in the case of a waiver, by
the party waiving compliance. Failure of any party at any time or times to
require performance of any provision hereof shall in no manner affect his or
its right at a later time to enforce the same. No waiver by a party of a breach
of any term or covenant contained 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 agreement contained in the Agreement.

 

(d)                                  Costs
of Enforcement. If any contest or dispute shall arise under this Agreement,
each party hereto shall bear its own legal fees and expenses.

 

(e)                                  Severability.
Whenever possible, each provision of this Agreement will be interpreted in
such manner as to be effective and valid under applicable law, but if any
provision of this Agreement is held to be invalid, illegal or unenforceable in
any respect under any applicable law or rule in any jurisdiction, such
invalidity, illegality or unenforceability will not affect any other provision
or any other jurisdiction, but this Agreement will be reformed, construed and
enforced in such jurisdiction as if such invalid, illegal or unenforceable
provisions had never been contained herein.

 

(f)                                    Successors
and Assigns. This Agreement is intended to bind and inure to the benefit of
and be enforceable by Executive and the Company, and their respective successors,
assigns, heirs, executors and administrators, except that Executive may not
assign any of his duties hereunder and he may not assign any of his rights
hereunder without the written consent of the Company, which shall not be
withheld unreasonably.

 

(g)                                 Notices.
All notices given hereunder shall be given by certified mail, addressed, or
delivered by hand, to the other party at his or its address as set forth
herein, or at any other address hereafter furnished by notice given in like
manner. Executive promptly shall notify Company of any change in Executive’s
address. Each notice shall be dated the date of its mailing or delivery and
shall be deemed given, delivered or completed on such date.

 

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(h)                                 Governing
Law; Personal Jurisdiction and Venue. This Agreement and all disputes
relating to this Agreement shall be governed in all respects by the laws of the
State of Colorado as such laws are applied to agreements between Colorado
residents entered into and performed entirely in Colorado. The Parties
acknowledge that this Agreement constitutes the minimum contacts to establish
personal jurisdiction in Colorado and agree to a Colorado court’s exercise of
personal jurisdiction. The Parties further agree that any disputes relating to
this Agreement shall be brought in courts located in the State of Colorado.

 

(i)                                    Entire
Agreement. This Agreement together with the other agreements and exhibits
specifically referenced herein, set forth the
entire agreement and understanding of the parties hereto with regard to the
employment of the Executive by the Company and supersede any and all prior
agreements, arrangements and understandings, written or oral, pertaining to the
subject matter hereof. No representation, promise or inducement relating to the
subject matter hereof has been made to a party that is not embodied in these
Agreements, and no party shall be bound by or liable for any alleged
representation, promise or inducement not so set forth herein.

 

(j)                                    Counterparts.
This Agreement may be executed in two or more counterparts, each of
which shall be deemed to be an original but all of which together shall
constitute one and the same instrument. The execution of this Agreement may be
by actual or facsimile signature.

 

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IN
WITNESS WHEREOF, the parties have each duly executed this
Employment Agreement effective as of the day and year first above written.

 

 

	
   

  	
  ALLOS
  THERAPEUTICS, INC.

  
	
   

  	
   

  
	
   

  	
  /s/ Paul L.
  Berns

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Paul L. Berns

  
	
   

  	
  Its:

  	
  President and
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
  Address:

  	
  11080
  CirclePoint Road

  
	
   

  	
   

  	
  Westminster, CO
  80020

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ James V.
  Caruso

  	
   

  
	
   

  	
  By:

  	
  James V. Caruso

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
  32 Coddington
  Court

  	
   

  
	
   

  	
   

  	
  Belle Meade, NJ
  08502

  	
   

  
	
   

  	
   

  	
   

  	
   

  
					

 

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EXHIBIT A TO EMPLOYMENT AGREEMENT

 

RELEASE AGREEMENT

 

I
understand that my position with Allos Therapeutics, Inc. (the “Company”)
terminated effective                  ,
         (the “Separation Date”). The Company has
agreed that if I choose to sign this Release, the Company will pay me certain
severance or consulting benefits pursuant to the terms of the Employment
Agreement (the “Agreement”) between myself and the Company, and any agreements
incorporated therein by reference. I understand that I am not entitled to such
benefits unless I sign this Release and it becomes fully effective. I
understand that, regardless of whether I sign this Release, the Company will
pay me all of my accrued salary and vacation through the Separation Date, to
which I am entitled by law.

 

In
consideration for the severance benefits I am receiving under the Agreement, I
hereby release the Company and its officers, directors, agents, attorneys,
employees, shareholders, parents, subsidiaries, and affiliates from any and all
claims, liabilities, demands, causes of action, attorneys’ fees, damages, or
obligations of every kind and nature, whether they are now known or unknown,
arising at any time prior to the date I sign this Release. This general release
includes, but is not limited to:  all
federal and state statutory and common law claims, claims related to my
employment or the termination of my employment or related to breach of
contract, tort, wrongful termination, discrimination, wages or benefits, or
claims for any form of equity or compensation. Notwithstanding the release in
the preceding sentence, I am not releasing any right of indemnification I may
have for any liabilities arising from my actions within the course and scope of
my employment with the Company.

 

If
I am forty (40) years of age or older as of the Separation Date, I acknowledge
that I am knowingly and voluntarily waiving and releasing any rights I may have
under the federal Age Discrimination in Employment Act of 1967, as amended (“ADEA”).
I also acknowledge that the consideration given for the waiver in the above
paragraph is in addition to anything of value to which I was already entitled. I
have been advised by this writing, as required by the ADEA that:  (a) my waiver and release do not apply to any
claims that may arise after my signing of this Release; (b) I should consult
with an attorney prior to executing this Release; (c) I have twenty-one (21)
days within which to consider this Release (although I may choose to
voluntarily execute this Release earlier); (d) I have seven (7) days following
the execution of this release to revoke the Release; and (e) this Release will
not be effective until the eighth day after this Release has been signed both
by me and by the Company (“Effective Date”).

 

Agreed:

 

	
  ALLOS
  THERAPEUTICS INC.

  	
  JAMES V. CARUSO

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
										

 

1EXHIBIT 10.1

LEASE AGREEMENT
BETWEEN THE COMPANY AND HARTZ MOUNTAIN

METROPOLITAN, DATED MAY 3, 2006.

 

TABLE OF CONTENTS

 

	
  ARTICLES 
 	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1 - DEFINITIONS

  	
   

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 - DEMISE AND
  TERM

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 - RENT

  	
   

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 - USE OF
  DEMISED PREMISES

  	
   

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 - PREPARATION
  OF DEMISED PREMISES

  	
   

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 - TAX AND
  OPERATING EXPENSE PAYMENTS

  	
   

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 - COMMON
  AREAS

  	
   

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 - SECURITY

  	
   

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 -
  SUBORDINATION

  	
   

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10 - QUIET
  ENJOYMENT

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11 -
  ASSIGNMENT, SUBLETTING AND MORTGAGING

  	
   

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12 - COMPLIANCE
  WITH LAWS

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13 - INSURANCE
  AND INDEMNITY

  	
   

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14 - RULES AND
  REGULATIONS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15 -
  ALTERATIONS AND SIGNS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16 - LANDLORD’S
  AND TENANT’S PROPERTY

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17 - REPAIRS
  AND MAINTENANCE

  	
   

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18 - UTILITY
  CHARGES

  	
   

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19 - ACCESS,
  CHANGES AND NAME

  	
   

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20 - MECHANICS’
  LIENS AND OTHER LIENS

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21 -
  NON-LIABILITY AND INDEMNIFICATION

  	
   

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22 - DAMAGE OR
  DESTRUCTION

  	
   

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23 - EMINENT
  DOMAIN

  	
   

  	
  32

  

 

 

 

	
  ARTICLE 24 - SURRENDER

  	
   

  	
  33

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25 - CONDITIONS
  OF LIMITATION

  	
   

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE 26 - RE-ENTRY
  BY LANDLORD

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27 - DAMAGES

  	
   

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28 - AFFIRMATIVE
  WAIVERS

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29 - NO WAIVERS

  	
   

  	
  38

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30 - CURING
  TENANT’S DEFAULTS

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31 - BROKER

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32 - NOTICES

  	
   

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33 - ESTOPPEL
  CERTIFICATES

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE 34 -
  INTENTIONALLY OMITTED

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE 35 - MEMORANDUM
  OF LEASE

  	
   

  	
  40

  
	
   

  	
   

  	
   

  
	
  ARTICLE 36 - MISCELLANEOUS

  	
   

  	
  40

  

 

EXHIBITS

Exhibit A - Demised Premises

Exhibit B - Description of Land

Exhibit C - Workletter

Exhibit C-1- Site Plan Depicting
Location of Parking Garage

Exhibit C-2 - Parking Garage Construction
Schedule

Exhibit C-3 - Parking Garage Construction
Payment Schedule

Exhibit D - Rules and Regulations

Exhibit E - Letter of Credit

Exhibit F - Schedule of 2 Emerson Lane Fixed Rent

Exhibit G - Schedule of Fixed Rent “Floor Amounts”

 2
 

 

Exhibit 10.1

LEASE, dated May 3, 2006, between
HARTZ MOUNTAIN METROPOLITAN, a New Jersey general partnership, having an office
at 400 Plaza Drive, P.O. Box 1515, Secaucus, New Jersey 07096-1515 (“Landlord”),
and THE CHILDREN’S PLACE SERVICES COMPANY, LLC, a Delaware limited liability
company, having an office at 2 Emerson Lane, Secaucus, New Jersey (“Tenant”).

ARTICLE 1 - DEFINITIONS

1.01. As used in this Lease (including in
all Exhibits and any Riders attached hereto, all of which shall be deemed to be
part of this Lease) the following words and phrases shall have the meanings
indicated:

A. Intentionally
omitted.

B. Additional Charges:  All amounts that become payable by Tenant to
Landlord hereunder other than the Fixed Rent.

C. Architect:  As Landlord may designate.

D. Broker: Resource Realty — Tom
Consiglio

E. Building:  The building located on the Land and known or
to be known as 2 Emerson Lane, Secaucus, New Jersey.

F. Building Fraction:  The fraction, the numerator of which is the
Floor Space of the Building (approximately 282,499 square feet) and the
denominator of which is the aggregate Floor Space of the buildings in the
Development. If the aggregate Floor Space of the buildings in the Development
shall be changed due to any construction or alteration, the denominator of the
Building Fraction shall be increased or decreased to reflect such change.

G. Calendar Year:  Any twelve-month period commencing on a
January 1.

H. Commencement Date:  March 1, 2007.

I. Common Areas:  All areas, spaces and improvements in the
Building and on the Land which Landlord makes available from time to time for
the common use and benefit of the tenants and occupants of the Building and
which are not exclusively available for use by a single tenant or occupant,
including, without limitation, parking areas, roads, walkways, sidewalks,
landscaped and planted areas, community rooms, if any, the managing agent’s
office, if any, and public rest rooms, if any.

 3
 

 

J. Demised Premises:  The space that is outlined in red on the
floor plans attached hereto as Exhibit A. The Demised Premises contains or
will contain approximately 245,200 square feet of Floor Space subject to
adjustment upon verification by the Architect.

K. Development: All land and improvements
owned by Landlord or its parents, subsidiaries, or affiliates, now existing or
hereafter constructed, located south of Route 3, east of the Hackensack River,
west of County Avenue and north of Castle Road.

L. Development Common Areas:  The roads and bridges that from time to time
service and provide access to the Development for the common use of the
tenants, invitees, and occupants of the Development, that are maintained by
Landlord or its related entities.

M. Expiration Date:  The date that is the day before the fifteenth
(15th) annual anniversary of the Commencement
Date if the Commencement Date is the first day of a month, or the fifteenth (15th) annual anniversary of the last day of the month in which
the Commencement Date occurs if the Commencement Date is not the first day of a
month. However, if the Term is extended by Tenant’s effective exercise of
Tenant’s right, if any, to extend the Term, the “Expiration Date” shall be
changed to the last day of the latest extended period as to which Tenant shall
have effectively exercised its right to extend the Term. For the purposes of
this definition, the earlier termination of this Lease shall not affect the “Expiration
Date.”

N. Fixed Rent:  An annual amount calculated as the product of
(i) the annual (per square foot) rate set forth on the Schedule of Fixed
Rent annexed hereto as Exhibit F and (ii) the Floor Space of the
Demised Premises. It is intended that the Fixed Rent shall be an absolutely net
return to Landlord throughout the Term, free of any expense, charge or other
deduction whatsoever, with respect to the Demised Premises, the Building, the
Land and/or the ownership, leasing, operation, management, maintenance, repair,
rebuilding, use or occupation thereof, or any portion thereof, with respect to
any interest of Landlord therein, except as may otherwise expressly be provided
in this Lease.

O. Floor Space:  Any reference to Floor Space of a demised
premises shall mean the floor area stated in square feet bounded by the
exterior faces of the exterior walls, or by the exterior or Common Areas face
of any wall between the premises in question and any portion of the Common
Areas, or by the center line of any wall between the premises in question and
space leased or available to be leased to a tenant or occupant, and any
reference to Floor Space of the Building shall mean the aggregate Floor Space
of the demised premises leased or which Landlord has available to be leased in
the Building.   Any reference to the
Floor Space is intended to refer to the Floor Space of the entire area in
question irrespective of the Person(s) who may be the owner(s) of all
or any part thereof.

P. Guarantor:         None.

Q. Insurance Requirements:  Rules, regulations, orders and other
requirements of the applicable board of underwriters and/or the applicable fire
insurance rating organization and/or any other similar body performing the same
or similar functions and having jurisdiction or cognizance over the Land and
Building, whether now or hereafter in force.

 4
 

 

R. Land: 
The Land upon which the Building and Common Areas are located. The Land
is described on Exhibit B.

S. Landlord’s Work:  The materials and work to be furnished,
installed and performed by Landlord in accordance with and subject to the
provisions of Exhibit C.

T. Legal Requirements:  Laws and ordinances of all federal, state,
city, town, county, borough and village governments, and rules, regulations,
orders and directives of all departments, subdivisions, bureaus, agencies or
offices thereof, and of any other governmental, public or quasi-public authorities
having jurisdiction over the Land and Building, whether now or hereafter in
force, including, but not limited to, those pertaining to environmental
matters.

U. Mortgage:  A mortgage and/or a deed of trust.

V. Mortgagee:  A holder of a mortgage or a beneficiary of a
deed of trust.

W. Operating Expenses:  The sum of the following:  (1) the cost and expense (whether or not
within the contemplation of the parties) for the repair, replacement,
maintenance, policing, insurance and operation of the Building and Land, and (2) the
Building Fraction of the sum of (a) the cost and expense for the repair,
replacement, maintenance, policing, insurance and operation of the Development
Common Areas; (b) the Real Estate Taxes, if any, attributable to the
Development Common Areas, and (3) the Parking Charges, if any. The “Operating
Expenses” shall, include, without limitation, the following:   (i) the cost for rent, casualty,
liability, boiler and fidelity insurance, (ii) if an independent managing
agent is employed by Landlord, the fees payable to such agent (provided the
same are competitive with the fees payable to independent managing agents of
comparable facilities), and (iii) costs and expenses incurred for legal,
accounting and other professional services, including, but not limited to,
costs and expenses for in-house or staff legal counsel or outside counsel at
rates not to exceed the reasonable and customary charges for any such services
as would be imposed in an arms length third party agreement for such services.
All items included in Operating Expenses shall be determined in accordance with
generally accepted accounting principles consistently applied.

X. Parking Charges:  The cost and expense for the repair,
replacement, striping, maintenance, policing, insurance, Real Estate Taxes,
utilities, and landscaping attributable to the pro-rata share of the parking
area(s) and deck(s), if any, allocated to the Building by Landlord. The
pro-rata share shall be determined based upon the number of parking spaces
allocated to the Building divided by the total number of the parking spaces in
such parking area(s) and deck(s).

Y. Permitted Uses:  General Office, showroom and ancillary uses,
including warehousing, and as the corporate headquarters for Tenant.

Z. Person:  A natural person or persons, a partnership, a
corporation, or any other form of business or legal association or entity.

AA. Intentionally Omitted.

 5
 

 

BB. Real Estate Taxes:  The real estate taxes, assessments and
special assessments imposed upon the Building and Land by any federal, state,
municipal or other governments or governmental bodies or authorities, and any
expenses incurred by Landlord in contesting such taxes or assessments and/or
the assessed value of the Building and Land, which expenses shall be allocated
to the period of time to which such expenses relate. If at any time during the
Term the methods of taxation prevailing on the date hereof shall be altered so
that in lieu of, or as an addition to or as a substitute for, the whole or any
part of such real estate taxes, assessments and special assessments now imposed
on real estate there shall be levied, assessed or imposed (a) a tax,
assessment, levy, imposition, license fee or charge wholly or partially as a
capital levy or otherwise on the rents received therefrom, or (b) any
other such additional or substitute tax, assessment, levy, imposition or
charge, then all such taxes, assessments, levies, impositions, fees or charges
or the part thereof so measured or based shall be deemed to be included within
the term “Real Estate Taxes” for the purposes hereof. Except as otherwise
provided in the second sentence of this Article 1.01 BB., Real Estate
Taxes shall not include the following: (i) gross receipts, excess profits,
revenue, payroll and stamp taxes; or (ii)  gift, estate, succession, sale,
transfer, corporate, franchise, excise, corporate levies, capital stock and
personal property taxes.

CC. Rent: 
The Fixed Rent and the Additional Charges.

DD. Rules and Regulations:  The reasonable rules and regulations
that may be promulgated by Landlord from time to time, which may be reasonably
changed by Landlord from time to time. The Rules and Regulations now in
effect are attached hereto as Exhibit D.

EE. Security Deposit:  Such amount as Tenant has deposited or hereinafter
deposits with Landlord as security under this Lease. Tenant shall deposit the
sum of $253,577.00 with Landlord as security hereunder as of the date hereof;
same to be held by Landlord in accordance with the provisions of Article 8
of this Lease.

FF. Successor
Landlord:  As defined in Section 9.03.

GG. Superior Lease:  Any lease to which this Lease is, at the time
referred to, subject and subordinate.

HH. Superior Lessor:  The lessor of a Superior Lease or its
successor in interest, at the time referred to.

II. Superior Mortgage:  Any Mortgage to which this Lease is, at the
time referred to, subject and subordinate.

JJ. Superior
Mortgagee:  The Mortgagee of a Superior
Mortgage at the time referred to.

KK. Tenant’s Fraction:  The Tenant’s Fraction shall mean the
fraction, the numerator of which shall be the Floor Space of the Demised
Premises and the denominator of which shall be the Floor Space of the Building
(predicated on Demised Premises consisting of 245,200 square feet of Floor
Space, Tenant’s Fraction is 86.8%). If the size of the Demised Premises or the
Building shall 

 6
 

 

be
changed from the initial size thereof, due to any taking, any construction or
alteration work or otherwise, the Tenant’s Fraction shall be changed to the
fraction, the numerator of which shall be the Floor Space of the Demised
Premises and the denominator of which shall be the Floor Space of the Building.
In the event Landlord determines that Tenant’s utilization of any item of
Operating Expenses exceeds the fraction referred to above, Tenant’s Fraction
with respect to such item shall, at Landlord’s option, mean the percentage of
any such item (but not less than the fraction referred to above) which Landlord
reasonably estimates as Tenant’s proportionate share thereof. Notwithstanding
anything herein contained to the contrary, to the extent Tenant is utilizing
the entirety of the parking areas and/or parking decks allocated to the
Building, Tenant’s Fraction with respect to the Parking Charges shall be 100%.

LL. Tenant’s Property:  As defined in Section 16.02.

MM. Tenant’s Work:  The facilities, materials and work which may
be undertaken by or for the account of Tenant (other than the Landlord’s Work)
to equip, decorate and furnish the Demised Premises for Tenant’s occupancy.

NN. Term: 
The period commencing on the Commencement Date and ending at 11:59 p.m.
of the Expiration Date, but in any event the Term shall end on the date when
this Lease is earlier terminated.

OO. Unavoidable Delays:  A delay arising from or as a result of a
strike, lockout, or labor difficulty, explosion, sabotage, accident, riot or
civil commotion, act of war, fire or other catastrophe, Legal Requirement or an
act of the other party and any cause beyond the reasonable control of that
party, provided that the party asserting such Unavoidable Delay has exercised
its best efforts to minimize such delay.

ARTICLE 2 - DEMISE AND
TERM

2.01. Landlord hereby leases to Tenant,
and Tenant hereby hires from Landlord, the Demised Premises, for the Term. This
Lease is subject to (a) any and all existing encumbrances, conditions,
rights, covenants, easements, restrictions and rights of way, of record, and
other matters of record, applicable zoning and building laws, regulations and
codes, and such matters as may be disclosed by an inspection or survey, and (b) easements
now or hereafter created by Landlord in, under, over, across and upon the Land
for sewer, water, electric, gas and other utility lines and services now or
hereafter installed; provided, however, Landlord represents to Tenant that the
Demised Premises may be used and occupied for the Permitted Uses contemplated
herein.

ARTICLE 3 - RENT

3.01. Tenant shall pay the Fixed Rent in
equal monthly installments in advance on the first day of each and every
calendar month during the Term. If the Commencement Date occurs on a day other
than the first day of a calendar month, the Fixed Rent for the partial calendar
month at the commencement of the Term shall be prorated.

 7
 

 

3.02. The Rent shall be paid in lawful
money of the United States to Landlord at its office, or such other place, or
Landlord’s agent, as Landlord shall designate by notice to Tenant. Tenant shall
pay the Rent promptly when due without notice or demand therefor and without
any abatement, deduction or setoff for any reason whatsoever, except as may be
expressly provided in this Lease. If Tenant makes any payment to Landlord by
check, same shall be by check of Tenant and Landlord shall not be required to
accept the check of any other Person, and any check received by Landlord shall
be deemed received subject to collection. If any check is mailed by Tenant,
Tenant shall post such check in sufficient time prior to the date when payment
is due so that such check will be received by Landlord on or before the date
when payment is due. Tenant shall assume the risk of lateness or failure of
delivery of the mails, and no lateness or failure of the mails will excuse
Tenant from its obligation to have made the payment in question when required
under this Lease.

3.03. No payment by Tenant or receipt or
acceptance by Landlord of a lesser amount than the correct Rent shall be deemed
to be other than a payment on account, nor shall any endorsement or statement
on any check or any letter accompanying any check or payment be deemed an
accord and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord’s right to recover the balance or pursue any other remedy
in this Lease or at law provided.

3.04. If Tenant is in arrears in payment
of Rent, Tenant waives Tenant’s right, if any, to designate the items to which
any payments made by Tenant are to be credited, and Landlord may apply any
payments made by Tenant to such items as Landlord sees fit, irrespective of and
notwithstanding any designation or request by Tenant as to the items to which
any such payments shall be credited.

3.05. In the event that any installment
of Rent due hereunder shall be overdue for five (5) days or more, a “Late
Charge” equal to four percent (4%) or the maximum rate permitted by law,
whichever is less for Rent so overdue may be charged by Landlord for each month
or part thereof that the same remains overdue (“Late Payment Rate”).  In the event that any check tendered by Tenant
to Landlord is returned for insufficient funds, Tenant shall pay to Landlord,
in addition to the charge imposed by the preceding sentence, a fee of $50.00. Any
such Late Charges if not previously paid shall, at the option of the Landlord,
be added to and become part of the next succeeding Rent payment to be made
hereunder. Notwithstanding anything herein contained to the contrary, as to the
original named Tenant and any Permitted Assignee(s) (as that term is
defined in Article 11.02 hereinbelow), the Late Charge shall be waived
once per Calendar Year provided payment is received by Landlord within ten (10) days
of its due date.

ARTICLE 4 - USE OF
DEMISED PREMISES

4.01. Tenant shall use and occupy the
Demised Premises for the Permitted Uses, and Tenant shall not use or permit or
suffer the use of the Demised Premises or any part thereof for any other
purpose.

4.02. If any governmental license or
permit, including a certificate of occupancy or certificate of continued
occupancy (a “Certificate of Occupancy”) shall be required for the proper and
lawful conduct of Tenant’s business in the Demised Premises or any part
thereof, Tenant shall 

 8
 

 

duly
procure and thereafter maintain such license or permit and submit the same to
Landlord for inspection. Tenant shall at all times comply with the terms and
conditions of each such license or permit. Tenant shall not at any time use or
occupy, or suffer or permit anyone to use or occupy the Demised Premises, or do
or permit anything to be done in the Demised Premises, in any manner which (a) violates
the Certificate of Occupancy for the Demised Premises or for the Building; (b) causes
or is liable to cause injury to the Building or any equipment, facilities or
systems therein; (c) constitutes a violation of the Legal Requirements or
Insurance Requirements; (d) impairs or tends to impair the character,
reputation or appearance of the Building; (e) impairs or tends to impair
the proper and economic maintenance, operation and repair of the Building
and/or its equipment, facilities or systems; or (f) annoys or
inconveniences or tends to annoy or inconvenience other tenants or occupants of
the Building.

4.03. Tenant shall not conduct any warehouse sale
at the Demised Premises without Landlord’s prior written consent. Provided
Tenant is not in default of its obligations under this Lease, Landlord agrees
not to unreasonably withhold its consent to not more than three (3) warehouse
sales in any consecutive twelve (12) month period. Tenant shall pay to Landlord
as an Additional Charge, an amount equal to five percent (5%) of Gross Receipts
(as hereinafter defined)  from any
warehouse sale conducted at the Demised Premises, payable within fifteen (15)
days after the warehouse sale. Tenant shall comply, at Tenant’s sole cost and
expense with all Legal Requirements with respect to any warehouse sale. Any
warehouse sale conducted by Tenant shall be not more than four (4) consecutive
days in duration. As used herein, Gross Receipts shall mean the dollar
aggregate of: (a) the actual sales price of all goods and merchandise
sold, leased or licensed and the charges for all services performed by Tenant
or otherwise in connection with all business conducted at such warehouse sale,
whether made for cash, by check, credit or otherwise, without reserve or
deduction for inability or failure to collect the same, including, without
limitation, sales and services (i) where the orders therefor originate at
or are accepted at or from the Demised Premises, whether delivery or
performance thereof is made at or from the Demised Premises or any other place,
it being understood that all sales made and orders received at or from the
Demised Premises shall be deemed to have been made and completed therein even
though the orders are fulfilled elsewhere or the payments of account are
transferred to some other office for collection, and (ii) where the orders
therefor result from solicitation off the Demised Premises but which are
conducted by personnel operating from or reporting to or under the control or
supervision of any person at the Demised Premises, and (b) all monies or
other things of value received by Tenant from its warehouse sale at the Demised
Premises including all finance charges, cost of gift or merchan­dise
certificates and all deposits not refunded to customers.  For purposes of this paragraph, the word “Tenant”
shall include any of Tenant’s subtenants, concessionaires and licens­ees.

ARTICLE 5 - PREPARATION
OF DEMISED PREMISES

5.01.(a)  Landlord shall be
obligated to build a parking structure adjacent to the Building as more
particularly described in, and subject to the provisions of, Exhibit C
annexed hereto.

5.01.(a)(i)  Landlord shall deliver
the Demised Premises to Tenant in “AS IS” condition. Tenant shall occupy the
Demised Premises upon the Commencement Date of the Lease. Except as 

 9
 

 

expressly
provided to the contrary in this Lease, the taking of possession by Tenant of
the Demised Premises shall be conclusive evidence as against Tenant that the
Demised Premises and the Building were in good and satisfactory condition at
the time such possession was taken.

5.01.(b)(i) Tenant shall be
responsible for all construction and work to prepare the Demised Premises for
Tenant’s occupancy at Tenant’s cost and expense. Such construction shall be in
accordance with Section 39.09 of this Lease. Prior to performing any work
in the Demised Premises, Tenant shall, within thirty (30) days of the date
thereof submit to Landlord for approval final plans and specifications for all
construction work in the Demised Premises including, but not limited to layout,
mechanical, electrical and plumbing plans and finish schedules (“Plans and
Specifications”). Tenant shall employ licensed architect(s) and/or
engineer(s) for the preparation of the Plans and Specifications. Landlord
shall notify Tenant of Landlord’s approval or disapproval of such Plans and
Specifications within fifteen (15) days after receipt thereof. If Landlord
disapproves, Landlord shall specify the reasons for disapproval and Tenant
shall, within fifteen (15) days of receipt of notice of Landlord’s disapproval,
resubmit revised Plans and Specifications that correct such items.
Notwithstanding anything herein contained to the contrary, if Landlord has not
responded to Tenant’s submission of the Plans and Specifications within twenty
(20) business days of Landlord’s receipt thereof, Tenant’s Plans and
Specifications so submitted shall be deemed approved.

(ii)           Tenant
shall obtain and provide all design and architectural services necessary to
perform Tenant’s Work and shall be responsible for complying with all building
codes and Legal Requirements in connection with Tenant’s Work, prior to
commencing any work in the Demised Premises. Tenant shall obtain a permanent
certificate of occupancy of the Demised Premises for the Permitted Uses. The
construction of the Demised Premises shall be performed in a first class
workmanlike manner. At all times when construction of the Demised Premises is
in progress and prior to the Commencement Date, Tenant shall maintain or cause
to be maintained the insurance coverage required under Section 13.02.

(iii)          Tenant
shall be solely responsible for the structural integrity of the improvements
and for the adequacy or sufficiency of the Plans and Specifications and all the
improvements depicted thereon or covered thereby, and Landlord’s consent
thereto, approval thereof, or incorporation therein of any of its
recommendations shall in no way diminish Tenant’s responsibility therefor or
reduce or mitigate Tenant’s liability in connection therewith. Landlord shall
have no obligations or liabilities by reason of this Lease in connections with
the performance of construction or of the finish, decorating or installation
work performed by Tenant, or on its behalf, or in connection with the contracts
for the performance thereof entered into by Tenant. Any warranties extended or
available to Tenant in connection with the aforesaid work shall be for the
benefit also of Landlord. Tenant further agrees that once it commences
construction, it shall diligently and continuously proceed with construction to
completion.

5.02. Intentionally omitted.

5.03. Intentionally omitted.

 

 10

 

5.04. Landlord reserves the right, at any
time and from time to time, to increase, reduce or change the number, type,
size, location, elevation, nature and use of any of the Common Areas and the
Building and any other buildings and other improvements on the Land, including,
without limitation, the right to move and/or remove same, provided same shall
not unreasonably block or interfere with Tenant’s means of ingress or egress to
and from the Demised Premises.

ARTICLE 6 - TAX AND
OPERATING EXPENSE PAYMENTS

6.01. Tenant shall pay to Landlord, as
hereinafter provided, Tenant’s Fraction of the Real Estate Taxes. Tenant’s
Fraction of the Real Estate Taxes shall be the Real Estate Taxes in respect of
the Building for the period in question, multiplied by the Tenant’s Fraction,
plus the Real Estate Taxes in respect of the Land for the period in question,
multiplied by the Tenant’s  Fraction. If
any portion of the Building shall be exempt from all or any part of the Real
Estate Taxes, then for the period of time when such exemption is in effect, the
Floor Space on such exempt portion shall be excluded when making the above
computations in respect of the part of the Real Estate Taxes for which such
portion shall be exempt. Landlord shall estimate the annual amount of Tenant’s
Fraction of the Real Estate Taxes (which estimate may be changed by Landlord at
any time and from time to time), and Tenant shall pay to Landlord 1/12th of the
amount so estimated on the first day of each month in advance. Tenant shall
also pay to Landlord on demand from time to time the amount which, together
with said monthly installments, will be sufficient in Landlord’s estimation to
pay Tenant’s Fraction of any Real Estate Taxes thirty (30) days prior to the
date when such Real Estate Taxes shall first become due. When the amount of any
item comprising Real Estate Taxes is finally determined for a real estate
fiscal tax year, Landlord shall submit to Tenant a statement in reasonable
detail of the same, and the figures used for computing Tenant’s Fraction of the
same, and if Tenant’s Fraction so stated is more or less than the amount
theretofore paid by Tenant for such item based on Landlord’s estimate, Tenant
shall pay to Landlord the deficiency within ten (10) days after submission
of such statement, or Landlord shall, at its sole election, either refund to
Tenant the excess or apply same to future installments of Real Estate Taxes due
hereunder. Any Real Estate Taxes for a real estate fiscal tax year, a part of
which is included within the Term and a part of which is not so included, shall
be apportioned on the basis of the number of days in the real estate fiscal tax
year included in the Term, and the real estate fiscal tax year for any
improvement assessment will be deemed to be the one-year period commencing on
the date when such assessment is due, except that if any improvement assessment
is payable in installments, the real estate fiscal tax year for each
installment will be deemed to be the one-year period commencing on the date
when such installment is due. The above computations shall be made by Landlord
in accordance with generally accepted accounting principles, and the Floor
Space referred to will be based upon the average of the Floor Space in
existence on the first day of each month during the period in question. In
addition to the foregoing, Tenant shall be responsible for any increase in Real
Estate Taxes attributable to assessments for improvements installed by or for
the account of Tenant at the Demised Premises. If the Demised Premises are not
separately assessed, the amount of any such increase shall be determined by
reference to the records of the tax assessor.

6.02. Real Estate Taxes, whether or not a
lien upon the Demised Premises shall be apportioned between Landlord and Tenant
at the beginning and end of the Term; it being intended 

 11
 

 

that
Tenant shall pay only that portion of the Real Estate Taxes as is allocable to
the Demised Premises for the Term.

6.03. Tenant shall pay to Landlord Tenant’s
Fraction of the Operating Expenses within ten (10) days after Landlord
submits to Tenant an invoice for same (which invoice shall be accompanied by
back-up documentation in support of such charges).

6.04. Each such statement given by
Landlord pursuant to Section 6.01 or Section 6.03 shall be conclusive
and binding upon Tenant unless within sixty (60) days after the receipt of such
statement Tenant shall notify Landlord that it disputes the correctness of the
statement, specifying the particular respects in which the statement is claimed
to be incorrect. If such dispute is not settled by agreement, either party may
submit the dispute to arbitration or other dispute resolution mechanism. Pending
the determination of such dispute by agreement or otherwise, Tenant shall,
within ten (10) days after receipt of such statement, pay the Additional
Charges in accordance with Landlord’s statement, without prejudice to Tenant’s
position. If the dispute shall be determined in Tenant’s favor, Landlord shall
forthwith pay to Tenant the amount of Tenant’s overpayment resulting from
compliance with Landlord’s statement. In the event it is determined that the
Tenant’s overpayment exceeds the amount Landlord should have properly billed
Tenant by more than ten percent (10%), then Landlord shall pay Tenant such overpayment
with interest thereon at the Late Payment Rate from the date Tenant actually
paid Landlord such overpayment.

ARTICLE 7 - COMMON AREAS

7.01. Except as may be otherwise
expressly provided in this Lease and so long as Tenant is not in default under this
Lease beyond the applicable cure period, 
Landlord will operate, manage, equip, light, repair and maintain, or
cause to be operated, managed, equipped, lighted, repaired and maintained, the
Common Areas for their intended purposes. Landlord reserves the right, at any
time and from time to time, to construct within the Common Areas kiosks,
fountains, aquariums, planters, pools and sculptures, and to install vending
machines, telephone booths, benches and the like, provided same shall not block
or interfere with Tenant’s means of ingress or egress to and from the Demised
Premises or otherwise interfere with Tenant’s use and occupancy of the Demised
Premises for the Permitted Uses.

7.02. So long as Tenant is not in default
under this Lease beyond the applicable cure period, Tenant and its subtenants
and concessionaires, and their respective officers, employees, agents,
customers and invitees, shall have the non-exclusive right, in common with
Landlord and all others to whom Landlord has granted or may hereafter grant
such right, but subject to the Rules and Regulations, to use the Common
Areas. Landlord reserves the right, at any time and from time to time, but upon
reasonable prior notice to Tenant (except in the event of an emergency), to
close temporarily all or any portions of the Common Areas when in Landlord’s
reasonable judgment any such closing is necessary or desirable (a) to make
repairs or changes or to effect construction, (b) to prevent the
acquisition of public rights in such areas, (c) to discourage unauthorized
parking, or (d) to protect or preserve natural persons or property.
Landlord may do such other acts in and to the Common Areas as in its judgment
may be desirable to improve or maintain same. Landlord agrees to exercise its
rights under this Article 7.02 in such a manner so as to minimize any
interference 

 12
 

 

with
Tenant’s means of ingress and egress to and from the Demised Premises as well
as Tenant’s use and occupancy of the Demised Premises for the Permitted Uses.

7.03. Tenant agrees that it, any
subtenant or licensee and their respective officers, employees, contractors and
agents will park their automobiles and other vehicles only where and as
permitted by Landlord.

ARTICLE 8 - SECURITY

8.01. (a) In the event Tenant
deposits with Landlord any Security Deposit, the same shall be held as security
for the full and faithful payment and performance by Tenant of Tenant’s
obligations under this Lease. If Tenant defaults in the full and prompt payment
and performance of any of its obligations under this Lease beyond any
applicable notice and cure period, including, without limitation, the payment
of Rent, Landlord may use, apply or retain the whole or any part of the
Security Deposit to the extent required for the payment of any Rent or any other
sums as to which Tenant is in default or for any sum which Landlord may expend
or may be required to expend by reason of Tenant’s default in respect of any of
Tenant’s obligations under this Lease, including, without limitation, any
damages or deficiency in the reletting of the Demised Premises, whether such
damages or deficiency accrue before or after summary proceedings or other
re-entry by Landlord. If Landlord shall so use, apply or retain the whole or
any part of the security, Tenant shall upon demand immediately deposit with
Landlord a sum equal to the amount so used, applied and retained, as security
as aforesaid. If Tenant shall fully and faithfully pay and perform all of
Tenant’s obligations under this Lease, the Security Deposit or any balance thereof
to which Tenant is entitled shall be returned or paid over to Tenant after the
date on which this Lease shall expire or sooner end or terminate, and after
delivery to Landlord of entire possession of the Demised Premises. In the event
of any sale or leasing of the Land, Landlord shall have the right to transfer
the security to which Tenant is entitled to the vendee or lessee and Landlord
shall thereupon be released by Tenant from all liability for the return or
payment thereof; and Tenant shall look solely to the new landlord for the
return or payment of the same; and the provisions hereof shall apply to every
transfer or assignment made of the same to a new landlord. Tenant shall not
assign or encumber or attempt to assign or encumber the monies deposited herein
as security, and neither Landlord nor its successors or assigns shall be bound
by any such assignment, encumbrance, attempted assignment or attempted
encumbrance.

8.01(b). In lieu of the cash security
required by this Lease, Tenant shall provide to Landlord an irrevocable
transferable Letter of Credit in the amount of the Security Deposit in form and
substance satisfactory to Landlord and issued by a financial institution
approved by Landlord. Landlord shall have the right, upon written notice to
Tenant (except that for Tenant’s non-payment of Rent or for Tenant’s failure to
comply with Article 8.03, no such notice shall be required) and regardless
of the exercise of any other remedy the Landlord may have by reason of a
default, to draw upon said Letter of Credit to cure any default of Tenant or
for any purpose authorized by section 8.01(a) of this Lease and if
Landlord does so, Tenant shall, upon demand, additionally fund the Letter of
Credit with the amount so drawn so that Landlord shall have the full deposit on
hand at all times during the Term of the Lease and for a period of thirty (30)
days’ thereafter. In the event 

 13
 

 

of
a sale of the Building or a lease of the Building subject to this Lease,
Landlord shall have the right to transfer the security to the vendee or lessee.

8.02. The Letter of Credit shall expire
not earlier than thirty (30) days after the Expiration Date of this Lease. Upon
Landlord’s prior consent, the Letter of Credit may be of the type which is
automatically renewed on an annual basis (Annual Renewal Date), provided
however, in such event Tenant shall maintain the Letter of Credit and its
renewals in full force and effect during the entire Term of this Lease
(including any renewals or extensions) and for a period of thirty (30) days
thereafter. The Letter of Credit will contain a provision requiring the issuer
thereof to give the beneficiary (Landlord) sixty (60) days’ advance written
notice of its intention not to renew the Letter of Credit on the next Annual
Renewal Date.

8.03. In the event Tenant shall fail to
deliver to Landlord a substitute irrevocable Letter of Credit, in the amount
stated above, on or before thirty (30) days prior to the next Annual Renewal
Date, said failure shall be deemed a default under this Lease. Landlord may, in
its discretion treat this the same as a default in the payment of Rent or any
other default and pursue the appropriate remedy. In addition, and not in
limitation, Landlord shall be permitted to draw upon the Letter of Credit as in
the case of any other default by Tenant under the Lease.

ARTICLE 9 - SUBORDINATION

9.01. (a)  This Lease, and all
rights of Tenant hereunder, are and shall be subject and subordinate to all
ground leases and underlying leases of the Land and/or the Building now or hereafter
existing and to all Mortgages which may now or hereafter affect the Land and/or
building and/or any of such leases, whether or not such Mortgages or leases
shall also cover other lands and/or buildings, to each and every advance made
or hereafter to be made under such Mortgages, and to all renewals,
modifications, replacements and extensions of such leases and such Mortgages
and spreaders and consolidations of such Mortgages. The provisions of this Section 9.01
shall be self-operative and no further instrument of subordination shall be
required. In confirmation of such subordination, Tenant shall promptly execute,
acknowledge and deliver any instrument that Landlord, the lessor under any such
lease or the Mortgagee of any such Mortgage or any of their respective
successors in interest may reasonably request to evidence such subordination.

(b) Notwithstanding
anything contained herein to the contrary, this Lease shall be contingent upon
Landlord obtaining for Tenant a Non-Disturbance, Subordination, and Attornment
Agreement from the holder of the existing first mortgage, Thrivent Financial
For Lutherans (which is the only existing mortgage encumbering the Demised
Premises as of the date hereof) on the Demised Premises on such mortgagee’s
standard form (the “Initial SNDA”) which Tenant shall promptly execute,
acknowledge and deliver to evidence such subordination, non-disturbance and
attornment. Landlord and Tenant shall cooperate in all respects with each other
and such mortgagee in order to obtain the Initial SNDA in an expeditious
manner, and shall provide any information reasonably required by such mortgagee.
Landlord shall not be required to use anything other than reasonable efforts
nor shall Landlord be required to institute any legal action or proceeding, in
order to obtain said agreement. If Thrivent Financial For Lutherans fails to
approve or expressly disapproves of this Lease or fails to agree or expressly
refuses or declines to deliver or 

 14
 

 

enter into such
Initial SNDA, by the date which is forty-five (45) days from the date of full
execution and delivery of this Lease, then, in such event, either Landlord or
Tenant shall have the right to terminate this Lease upon written notice to the
other given no later than the date which is fifty (50) days from the date of
full execution and deliver of this Lease. In the event that this Lease is
terminated in accordance with the foregoing, the Security Deposit shall be
promptly returned to Tenant, and the rights and obligations of each party
hereunder and this Lease shall be deemed null and void and without force and
effect. In the event Tenant fails to exercise its right to cancel this Lease in
accordance with the foregoing, Tenant’s right to cancel shall be deemed null
and void. Landlord shall not be obligated to commence any Landlord’s Work until
the contingencies set forth in this Paragraph 9.01 have been fully satisfied or
waived. This Lease shall be subordinate to future ground leases or mortgages
only on the condition that Landlord shall obtain from any such future mortgagee
and/or ground lessor a subordination, non-disturbance and attornment agreement
with respect to this Lease on such mortgagee’s standard form. In the event
Tenant exercises Tenant’s right to terminate this Lease in accordance with this
Article 9.01(b), then the Lease Termination Agreements executed by and
between Landlord’s Affiliate, Hartz Mountain Associates and Tenant with respect
to the 900 Secaucus Road Lease and the 915 Secaucus Road Lease shall be
rescinded and rendered null and void and the 900 Secaucus Lease and the 915
Secaucus Road Lease shall be deemed in full force and effect. The parties shall
execute such documentation as is reasonably necessary to memorialize the
validity of the 900 Secaucus Road Lease and the 915 Secaucus Road Lease upon
request of either party.

9.02. If any act or omission of Landlord
would give Tenant the right, immediately or after lapse of a period of time, to
cancel or terminate this Lease, or to claim a partial or total eviction, Tenant
shall not exercise such right (a) until it has given written notice of
such act or omission to Landlord and each Superior Mortgagee and each Superior
Lessor whose name and address shall previously have been furnished to Tenant,
and (b) until a reasonable period for remedying such act or omission shall
have elapsed following the giving of such notice and following the time when
such Superior Mortgagee or Superior Lessor shall have become entitled under
such Superior Mortgage or Superior Lease, as the case may be, to remedy the
same (which reasonable period shall in no event be less than the period to
which Landlord would be entitled under this Lease or otherwise, after similar
notice, to effect such remedy), provided such Superior Mortgagee or Superior
Lessor shall with due diligence give Tenant notice of intention to, and
commence and continue to, remedy such act or omission.

9.03. If any Superior Lessor or Superior
Mortgagee shall succeed to the rights of Landlord under this Lease, whether
through possession or foreclosure action or delivery of a new lease or deed,
then at the request of such party so succeeding to Landlord’s rights (“Successor
Landlord”) and upon such Successor Landlord’s written agreement to accept
Tenant’s attornment, Tenant shall attorn to and recognize such Successor
Landlord as Tenant’s landlord under this Lease and shall promptly execute and
deliver any instrument that such Successor Landlord may reasonably request to
evidence such attornment. Upon such attornment this Lease shall continue in full
force and effect as a direct lease between the Successor Landlord and Tenant
upon all of the terms, conditions and covenants as are set forth in this Lease
except that the Successor Landlord shall not (a) be liable for any
previous act or omission of Landlord under this Lease; (b) be subject to
any offset, not expressly provided for in this Lease, which theretofore shall
have accrued to Tenant against Landlord; (c) be liable for the return of
any Security Deposit, in whole or in part, to the extent that 

 15
 

 

same
is not paid over to the Successor Landlord; or (d) be bound by any
previous modification of this Lease or by any previous prepayment of more than
one month’s Fixed Rent or Additional Charges, unless such modification or
prepayment shall have been expressly approved in writing by the Superior Lessor
of the Superior Lease or the Mortgagee of the Superior Mortgage through or by
reason of which the Successor Landlord shall have succeeded to the rights of
Landlord under this Lease.

9.04. If any then present or prospective
Superior Mortgagee shall require any modification(s) of this Lease, Tenant
shall promptly execute and deliver to Landlord such instruments effecting such
modification(s) as Landlord shall request, provided that such modification(s) do
not adversely affect in any material respect any of Tenant’s rights under this
Lease.

ARTICLE 10 - QUIET
ENJOYMENT

10.01. So long as Tenant pays all of the
Rent and performs all of Tenant’s other obligations hereunder, Tenant shall
peaceably and quietly have, hold and enjoy the Demised Premises without
hindrance, ejection or molestation by Landlord or any person lawfully claiming
through or under Landlord, subject, nevertheless, to the provisions of this
Lease and to Superior Leases and Superior Mortgages.

ARTICLE 11 - ASSIGNMENT,
SUBLETTING AND MORTGAGING

11.01. Tenant shall not, whether
voluntarily, involuntarily, or by operation of law or otherwise, (a) assign
or otherwise transfer this Lease, or offer or advertise to do so, (b) sublet
the Demised Premises or any part thereof, or offer or advertise to do so, or
allow the same to be used, occupied or utilized by anyone other than Tenant, or
(c) mortgage, pledge, encumber or otherwise hypothecate this Lease in any
manner whatsoever, without in each instance obtaining the prior written consent
of Landlord.

Landlord agrees not to unreasonably
withhold its consent to the subletting of the Demised Premises or an assignment
of this Lease. In determining reasonableness, Landlord may take into
consideration all relevant factors surrounding the proposed sublease and
assignment, including, without limitation, the following: (i) The business
reputation of the proposed assignee or subtenant and its officers or directors
in relation to the other tenants or occupants of the Building or Development; (ii) the
nature of the business and the proposed use of the Demised Premises by the
proposed assignee or subtenant in relation to the other tenants or occupants of
the Building or Development; (iii) whether the proposed assignee or subtenant  is then a tenant (or subsidiary, affiliate or
parent of a tenant) of other space in the Building or Development, or any other
property owned or managed by Landlord or its affiliates; (iv) the
financial condition of the proposed assignee or subtenant; (v) restrictions,
if any, contained in leases or other agreements affecting the Building and the
Development; (vi) the effect that the proposed assignee’s or subtenant’s
occupancy or use of the Demised Premises would have upon the operation and
maintenance of the Building and the Development; (vii) the extent to which
the proposed assignee or subtenant and Tenant provide Landlord with assurances
reasonably satisfactory to Landlord as to the satisfaction of 

 16
 

 

Tenant’s
obligations hereunder. In any event, at no time shall there be more than two (2) subtenants
of the Demised Premises permitted.

11.02. If at any time (a) the
original Tenant named herein, (b) the then Tenant, (c) any Guarantor,
or (d) any Person owning a majority of the voting stock of, or directly or
indirectly controlling, the then Tenant shall be a corporation or partnership,
any transfer of voting stock or partnership interest resulting in the person(s) who
shall have owned a majority of such corporation’s shares of voting stock or the
general partners’ interest in such partnership, as the case may be, immediately
before such transfer, ceasing to own a majority of such shares of voting stock
or general partner’s interest, as the case may be, except as the result of
transfers by inheritance, shall be deemed to be an assignment of this Lease as
to which Landlord’s consent shall have been required, and in any such event
Tenant shall notify Landlord. The provisions of this Section 11.02 shall
not be applicable to any corporation all the outstanding voting stock of which
is listed on a national securities exchange (as defined in the Securities
Exchange Act of 1934, as amended) or is traded in the over-the-counter market
with quotations reported by the National Association of Securities Dealers through
its automated system for reporting quotations and shall not apply to
transactions with a corporation into or with which the then Tenant is merged or
consolidated or to which substantially all of the then Tenant’s assets are
transferred or to any corporation which controls or is controlled by the then
Tenant or is under common control with the then Tenant, provided that in any of
such events (i) the successor to Tenant has a net worth computed in
accordance with generally accepted accounting principles at least equal to the
greater of (1) the net worth of Tenant immediately prior to such merger,
consolidation or transfer, or (2) the net worth of the original Tenant on
the date of this Lease, and (ii) proof satisfactory to Landlord of such
net worth shall have been delivered to Landlord at least 10 days prior to the
effective date of any such transaction (the entities referenced in this
preceding sentence shall sometimes be referred to collectively as “Permitted
Assignees” and individually as a “Permitted Assignee”). For the purposes of
this Section, the words “voting stock” shall refer to shares of stock regularly
entitled to vote for the election of directors of the corporation. Landlord
shall have the right at any time and from time to time during the Term to
inspect the stock record books of the corporation to which the provisions of
this Section 11.02 apply, and Tenant will produce the same on request of
Landlord.

11.03. If this Lease is assigned, whether
or not in violation of this Lease, Landlord may collect rent from the assignee.
If the Demised Premises or any part thereof are sublet or used or occupied by
anybody other than Tenant, whether or not in violation of this Lease, Landlord
may, after default by Tenant, and expiration of Tenant’s time to cure such
default, collect rent from the subtenant or occupant. In either event, Landlord
may apply the net amount collected to the Rent, but no such assignment,
subletting, occupancy or collection shall be deemed a waiver of any of the
provisions of Section 11.01 or Section 11.02, or the acceptance of
the assignee, subtenant or occupant as tenant, or a release of Tenant from the
performance by Tenant of Tenant’s obligations under this Lease. The consent by
Landlord to any assignment, mortgaging, subletting or use or occupancy by
others shall not in any way be considered to relieve Tenant from obtaining the
express written consent of Landlord to any other or further assignment,
mortgaging or subletting or use or occupancy by others not expressly permitted
by this Article 11. References in this Lease to use or occupancy by others
(that is, anyone other than Tenant) shall not be construed as limited to
subtenants and those claiming under or through subtenants but shall be
construed as including also licensees and others claiming under or through
Tenant, immediately or remotely.

 17
 

 

11.04. Any permitted assignment or
transfer, whether made with Landlord’s consent pursuant to Section 11.01
or without Landlord’s consent if permitted by Section 11.02, shall be made
only if, and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord an agreement in form and substance
satisfactory to Landlord whereby the assignee shall assume Tenant’s obligations
under this Lease and whereby the assignee shall agree that all of the
provisions in this Article 11 shall, notwithstanding such assignment or
transfer, continue to be binding upon it in respect to all future assignments
and transfers. Notwithstanding any assignment or transfer, whether or not in
violation of the provisions of this Lease, and notwithstanding the acceptance
of Rent by Landlord from an assignee, transferee, or any other party, the
original Tenant and any other person(s) who at any time was or were Tenant
shall remain fully liable for the payment of the Rent and for Tenant’s other
obligations under this Lease.

11.05. The liability of the original
named Tenant and any other Person(s) (including but not limited to any
Guarantor) who at any time are or become responsible for Tenant’s obligations
under this Lease shall not be discharged, released or impaired by any agreement
or stipulation made by Landlord extending the time of, or modifying any of the
terms or obligations under this Lease, or by any waiver or failure of Landlord
to enforce, any of this Lease.

11.06. The listing of any name other than
that of Tenant, whether on the doors of the Demised Premises or the Building
directory, or otherwise, shall not operate to vest any right or interest in
this Lease or in the Demised Premises, nor shall it be deemed to be the consent
of Landlord to any assignment or transfer of this Lease or to any sublease of
the Demised Premises or to the use or occupancy thereof by others. Notwithstanding
anything contained in this Lease to the contrary, Landlord shall have the
absolute right to withhold its consent to an assignment or subletting to a
Person who is otherwise a tenant or occupant of the Building, or of a building
owned or managed by Landlord or its affiliated entities.

11.07. Without limiting any of the
provisions of Article 27, if pursuant to the Federal Bankruptcy Code (or
any similar law hereafter enacted having the same general purpose), Tenant is
permitted to assign this Lease notwithstanding the restrictions contained in
this Lease, adequate assurance of future performance by an assignee expressly
permitted under such Code shall be deemed to mean the deposit of cash security
in an amount equal to the sum of one (1) year’s Fixed Rent plus an amount
equal to the Additional Charges for the Calendar Year preceding the year in
which such assignment is intended to become effective, which deposit shall be
held by Landlord for the balance of the Term, without interest, as security for
the full performance of all of Tenant’s obligations under this Lease, to be
held and applied in the manner specified for security in Article 8.
Notwithstanding anything contained in this Lease to the contrary, Landlord
shall not be obligated to entertain or consider any request by Tenant to
consent to any proposed assignment of this Lease or sublet of all or any part
of the Demised Premises unless each request by Tenant is accompanied by a
non-refundable fee payable to Landlord in the amount of One Thousand Dollars
($1,000.00) to cover Landlord’s administrative, legal, and other costs and
expenses incurred in processing each of Tenant’s requests. Neither Tenant’s
payment nor Landlord’s acceptance of the foregoing fee shall be construed to
impose any obligation whatsoever upon Landlord to consent to Tenant’s request.

 18
 

 

 

ARTICLE 12 - COMPLIANCE
WITH LAWS

12.01. Tenant shall comply with all Legal
Requirements which shall, in respect of the Demised Premises or the use and
occupation thereof, or the abatement of any nuisance in, on or about the
Demised Premises, impose any violation, order or duty on Landlord or Tenant;
and Tenant shall pay all the costs, expenses, fines, penalties and damages
which may be imposed upon Landlord or any Superior Lessor by reason of or
arising out of Tenant’s failure to fully and promptly comply with and observe
the provisions of this Section 12.01. However, Tenant need not comply with
any such law or requirement of any public authority so long as Tenant shall be
contesting the validity thereof, or the applicability thereof to the Demised
Premises, in accordance with Section 12.02. Landlord represents that it
has received no notice of any violation of any applicable Legal Requirement
affecting the Demised Premises, and that to the best of Landlord’s knowledge
and belief, exclusive of compliance matters required as a result of Landlord’s
Work or Tenant’s Work, the Demised Premises are presently in compliance with
all applicable Legal Requirements.

12.02. Tenant may contest, by appropriate
proceedings prosecuted diligently and in good faith, the validity, or
applicability to the Demised Premises, of any Legal Requirement, provided that
(a)/ Landlord shall not be subject to criminal penalty or to prosecution for a
crime or offense, and neither the Demised Premises nor any part thereof shall
be subject to being condemned or vacated, by reason of non-compliance or
otherwise by reason of such contest; (b) before the commencement of such
contest, Tenant shall furnish to Landlord either (i) the bond of a surety
company satisfactory to Landlord, which bond shall be, as to its provisions and
form, satisfactory to Landlord, and shall be in an amount at least equal to
125% of the cost of such compliance (as estimated by a reputable contractor
designated by Landlord) and shall indemnify Landlord against the cost thereof
and against all liability for damages, interest, penalties and expenses
(including reasonable attorneys’ fees and expenses), resulting from or incurred
in connection with such contest or non-compliance, or (ii) other security
in place of such bond satisfactory to Landlord; 
(c) such non-compliance or contest shall not constitute or result
in any violation of any Superior Lease or Superior Mortgage, or if any such
Superior Lease and/or Superior Mortgage shall permit such non-compliance or
contest on condition of the taking of action or furnishing of security by
Landlord, such action shall be taken and such security shall be furnished at
the expense of Tenant; and (d) Tenant shall keep Landlord advised as to
the status of such  proceedings. Without
limiting the application of the above, Landlord shall be deemed subject to
prosecution for a crime or offense if Landlord, or its  managing agent, or any officer, director,
partner, shareholder or employee of Landlord or its managing agent, as an
individual, is charged with a crime or offense of any kind or degree
whatsoever, whether by service of a summons or otherwise, unless such charge is
withdrawn before Landlord or its managing agent, or such officer, director,
partner, shareholder or employee of Landlord or its managing agent (as the case
may be) is required to plead or answer thereto. Notwithstanding anything
contained in this Lease to the contrary, Tenant shall not file any Real Estate
Tax Appeal with respect to the Land, Building or the Demised Premises.

ARTICLE 13 - INSURANCE
AND INDEMNITY

13.01. Landlord shall maintain or cause
to be maintained All Risk insurance in respect of the Building and other
improvements on the Land normally covered by such insurance (except for 

 19
 

 

the
property Tenant is required to cover with insurance under Section 13.02
and similar property of other tenants and occupants of the Building or
buildings and other improvements which are on land neither owned by nor leased
to Landlord) for the benefit of Landlord, any Superior Lessors, any Superior
Mortgagees and any other parties Landlord may at any time and from time to time
designate, as their interests may appear, but not for the benefit of Tenant,
and shall maintain rent insurance as required by any Superior Lessor or any
Superior Mortgagee. The All Risk insurance will be in the amounts required by
any Superior Lessor or any Superior Mortgagee but not less than the amount
sufficient to avoid the effect of the co-insurance provisions of the applicable
policy or policies. Landlord may also maintain any other forms and types of
insurance which Landlord shall deem reasonable in respect of the Building and
Land. Landlord shall have the right to provide any insurance maintained or
caused to be maintained by it under blanket policies.

13.02.
Tenant shall maintain the following insurance: 
(a) commercial general liability insurance in respect of the
Demised Premises and the conduct and operation of business therein, having a
limit of liability not less than a $5,000,000. per occurrence for bodily injury
or property damage. coverage to include but not be limited to  premises/operations, completed operations,
contractual liability and product liability, 
(b) automobile liability insurance covering all owned, hired and
non-owned vehicles used by the Tenant  in
connection with the premises  and any
loading or unloading of such vehicles, with a limit of liability not less than
$2,000,000 per accident and (c) worker’s compensation and  employers liability insurance as required by
statutes, but in any event not less than $500,000. for Employers Liability; (d) All
Risk insurance in respect of loss or damage to Tenant’s stock in trade,
fixtures, furniture, furnishings, removable floor coverings, equipment, signs
and all other property of Tenant in the Demised Premises in an amount equal to
the full replacement value thereof as same might increase from time to time or
such higher amount as either may be required by the holder of any fee mortgage,
or is necessary to prevent Landlord and/or Tenant from becoming a co-insurer.  Such insurance shall include coverage for
property of others in the care, custody and control of Tenant in amounts
sufficient to cover the replacement value of such property, to the extent of
Tenant’s liability therefor; and (e)  such other insurance as Landlord may
reasonably require. Landlord may at any time and from time to time require that
the limits for the general liability insurance to be maintained by Tenant be
increased to the limits that new tenants in the Building are required by
Landlord to maintain. Tenant shall deliver to Landlord and any additional
insured(s) certificates for such fully paid-for policies upon execution
hereof. Tenant shall procure and pay for renewals of such insurance from time
to time before the expiration thereof, and Tenant shall deliver to Landlord and
any additional insured(s) certificates therefor at least thirty (30) days
before the expiration of any existing policy. All such policies shall be issued
by companies acceptable to Landlord, having a Bests Rating of not less than A, Class VII
(or an equivalent S&P rating if requested by Landlord), and licensed to do
business in New Jersey, and all such policies shall contain a provision whereby
the same cannot be canceled unless Landlord and any additional insured(s) are
given at least thirty (30) days’ prior written notice of such cancellation. The
policies and certificates of insurance (such certificates to be on Acord form
27 or its equivalent) to be delivered to Landlord by Tenant pursuant to this Section 13.02
(other than workers compensation insurance) shall name Landlord as an
additional insured and, at Landlord’s request, shall also name any Superior
Lessors or Superior Mortgagees as additional insureds, and the following phrase
must be typed on the certificate of insurance: “Hartz Mountain Industries, Inc.,
and its respective subsidiaries, affiliates, associates, joint ventures, and
partnerships, and  (if Landlord has so
requested) Superior Lessors and Superior Mortgagees are hereby named as 

 20
 

 

additional
insureds as their interests may appear. It is intended for this insurance to be
primary and non-contributing.”  Tenant
shall give Landlord at least thirty (30) days’ prior written notice that any
such policy is being canceled or replaced. Tenant’s obligation to carry the
insurance provided for herein may be brought within the coverage of a so-called
“blanket” policy of insurance carried and maintained by Tenant; provided,
however, that (i) certificates of insurance (on Acord form 27 or the
equivalent) for such insurance are delivered to Landlord and that Landlord
shall be named as an additional insured thereunder, as its interests may appear
as more particularly required above, (ii) the coverage afforded Landlord
shall not be reduced or diminished by reason of the use of such blanket policy
of insurance, (iii) the requirements set forth herein are otherwise
satisfied, (iv) such blanket policy shall reference the Demised Premises
and guarantee a minimum limit available for the Demised Premises equal to the
insurance amounts required in this Lease, and (v) Tenant agrees to make
available to Landlord, at all reasonable times, the original policies of
insurance.

13.03. Tenant shall not do, permit or
suffer to be done any act, matter, thing or failure to act in respect of the
Demised Premises or use or occupy the Demised Premises or conduct or operate
Tenant’s business in any manner objectionable to any insurance company or
companies whereby the fire insurance or any other insurance then in effect in
respect of the Land and Building or any part thereof shall become void or
suspended or whereby any premiums in respect of insurance maintained by
Landlord shall be higher than those which would normally have been in effect
for the occupancy contemplated under the Permitted Uses. In case of a breach of
the provisions of this Section 13.03, in addition to all other rights and
remedies of Landlord hereunder, Tenant shall (a) indemnify Landlord and
the Superior Lessors and hold Landlord and the Superior Lessors harmless from
and against any loss which would have been covered by insurance which shall
have become void or suspended because of such breach by Tenant and (b) pay
to Landlord any and all increases of premiums on any insurance, including,
without limitation, rent insurance, resulting from any such breach.

13.04. Tenant shall indemnify and hold
harmless Landlord and all Superior Lessors and its and their respective
partners, joint venturers, directors, officers, agents, servants and employees
from and against any and all claims arising from or in connection with
(a) the conduct or management of the Demised Premises or of any business
therein, or any work or thing whatsoever done, or any condition created (other
than by Landlord) in the Demised Premises during the Term or during the period
of time, if any, prior to the Commencement Date that Tenant may have been given
access to the Demised Premises; (b) any act, omission or negligence of
Tenant or any of its subtenants or licensees or its or their partners, joint
venturers, directors, officers, agents, employees or contractors; (c) any
accident, injury or damage whatever (unless caused solely by Landlord’s
negligence) occurring in the Demised Premises; and (d) any breach or
default by Tenant in the full and prompt payment and performance of Tenant’s
obligations under this Lease; together with all costs, expenses and liabilities
incurred in or in connection with each such claim or action or proceeding
brought thereon, including, without limitation, all attorneys’ fees and
expenses. In case any action or proceeding is brought against Landlord and/or
any Superior Lessor and/or its or their partners, joint venturers, directors,
officers, agents and/or employees in connection with conduct or management of
the Demised Premises or by reason of any claim referred to above, Tenant, upon
notice from Landlord or such Superior Lessor, shall, at Tenant’s cost and
expense, resist and defend such action or proceeding by counsel reasonably
satisfactory to Landlord.

 21

 

13.05. Neither
party shall be liable or responsible for, and each party hereby releases the
other from, all liability and responsibility to the other and any person
claiming by, through or under such party, by way of subrogation or otherwise,
for any injury, loss or damage to any person or property in or around the
Demised Premises or to the other’s business covered by insurance carried or
required to be carried hereunder irrespective of the cause of such injury, loss
or damage, and each party shall require its insurers to include in all of such
party’s insurance policies which could give rise to a right of subrogation  a clause or endorsement whereby the insurer
waives any rights of subrogation against the other or permits the insured,
prior to any loss, to agree with a third party to waive any claim it may have
against said third party without invalidating the coverage under the insurance
policy.

ARTICLE 14 - RULES AND
REGULATIONS

14.01. Tenant and its employees and
agents shall faithfully observe and comply with the Rules and Regulations
and such reasonable changes therein (whether by modification, elimination or
addition) as Landlord at any time or times hereafter may make and communicate
to Tenant, which in Landlord’s judgment, shall be necessary for the reputation,
safety, care or appearance of the Land and Building, or the preservation of
good order therein, or the operation or maintenance of the Building or its
equipment and fixtures, or the Common Areas, and which do not unreasonably
affect the conduct of Tenant’s business in the Demised Premises; provided,
however, that in case of any conflict or inconsistency between the provisions
of this Lease and any of the Rules and Regulations, the provisions of this
Lease shall control. Nothing in this Lease contained shall be construed to
impose upon Landlord any duty or obligation to enforce the Rules and
Regulations against any other tenant or any employees or agents of any other
tenant, and Landlord shall not be liable to Tenant for violation of the Rules and
Regulations by any other tenant or its employees, agents, invitees or
licensees.

ARTICLE 15 - ALTERATIONS
AND SIGNS

15.01. Tenant shall not make any
alterations or additions to the Demised Premises, or make any holes or cuts in
the walls, ceilings, roofs, or floors thereof, or change the exterior color or
architectural treatment of the Demised Premises, without on each occasion first
obtaining the consent of Landlord, which consent shall not be unreasonably
withheld or delayed. Notwithstanding anything contained in the previous
sentence to the contrary, Landlord’s consent shall not be required for any
non-structural interior alteration which does not affect (i) the structure
of the Building, or (ii) the mechanical systems serving the Building, or (iii) the
functional utility of the Building for the Permitted Uses (“Permitted
Alterations”), provided, however, Tenant agrees to provide Landlord with
written notice of any Permitted Alteration exceeding $50,000.  Tenant shall submit to Landlord plans and
specifications for such work at the time Landlord’s consent is sought. In the
event Landlord does not respond to Tenant’s submission within fifteen (15)
business days of Landlord’s receipt of said plans and specifications, the plans
and specifications, as submitted by Tenant, shall be deemed approved. Tenant
shall pay to Landlord upon demand the reasonable cost and expense of Landlord
in (a) reviewing said plans and specifications and (b) inspecting the
alterations to determine whether the same are being performed in accordance
with the approved plans and specifications and all Legal Requirements and
Insurance Requirements, including, 

 22
 

 

without
limitation, the fees of any architect or engineer employed by Landlord for such
purpose. Before proceeding with any permitted alteration which will cost more
than $100,000 (exclusive of the costs of decorating work, items constituting
Tenant’s Property, and the “initial” Tenant’s Work), as estimated by a
reputable contractor reasonably approved by Landlord, Tenant shall obtain and
deliver to Landlord either (i) a performance bond and a labor and
materials payment bond (issued by a corporate surety licensed to do business in
New Jersey), each in an amount equal to 125% of such estimated cost and in form
satisfactory to Landlord, or (ii) such other security as shall be
satisfactory to Landlord. Tenant shall fully and promptly comply with and
observe the Rules and Regulations then in force in respect of the making
of alterations. Any review or approval by Landlord of any plans and/or
specifications with respect to any alterations is solely for Landlord’s
benefit, and without any representation or warranty whatsoever to Tenant in
respect of the adequacy, correctness or efficiency thereof or otherwise.

15.02. Tenant shall obtain all necessary
governmental permits and certificates for the commencement and prosecution of
permitted alterations and for final approval thereof upon completion, and shall
cause alterations to be performed in compliance therewith and with all
applicable Legal Requirements and Insurance Requirements. Alterations shall be
diligently performed in a good and workmanlike manner, using new or like-new
materials and equipment at least equal in quality and class to the better of (a) the
original installations of the Building, or (b) the then standards for the
Building established by Landlord. Alterations, including, but not limited to
alterations in or to the mechanical, electrical, sanitary, heating,
ventilating, air conditioning or other systems of the Building, shall be
performed by contractors first reasonably approved by Landlord. Alterations
shall be made in such manner as not to unreasonably interfere with or delay and
as not to impose any additional expense upon Landlord in the construction,
maintenance, repair or operation of the Building; and if any such additional
expense shall be incurred by Landlord as a result of Tenant’s making of any
alterations, Tenant shall pay any such additional expense upon demand. Throughout
the making of alterations, Tenant shall carry, or cause to be carried, worker’s
compensation insurance in statutory limits and general liability insurance,
with completed operation endorsement, for any occurrence in or about the
Building, under which Landlord and its managing agent and any Superior Lessor
whose name and address shall previously have been furnished to Tenant shall be
named as parties insured, in such limits as Landlord may reasonably require,
with insurers reasonably satisfactory to Landlord. Tenant shall furnish
Landlord with reasonably satisfactory evidence that such insurance is in effect
at or before the commencement of alterations and, on request, at reasonable
intervals thereafter during the making of alterations.

15.03. Tenant shall not place any signs
on the roof, exterior walls or grounds of the Demised Premises without first
obtaining Landlord’s written consent thereto, which consent shall not be
unreasonably withheld, conditioned or delayed. In placing any signs on or about
the Demised Premises, Tenant shall, at its expense, comply with all applicable
Legal Requirements and obtain all required permits and/or licenses.

15.04. In connection with the making of
any alteration, Landlord shall, upon request of Tenant, advise Tenant at the
time consent to any alteration is requested, whether Landlord will require that
the subject alteration be removed from the Demised Premises and the Demised
Premises restored to their original condition.

 23
 

 

 

ARTICLE 16 - LANDLORD’S
AND TENANT’S PROPERTY

16.01. All fixtures, equipment,
improvements and appurtenances attached to or built into the Demised Premises
at the commencement of or during the Term, whether or not by or at the expense
of Tenant, shall be and remain a part of the Demised Premises, shall be deemed
to be the property of Landlord and shall not be removed by Tenant, except as
provided in Section 16.02. Further, any carpeting or other personal
property in the Demised Premises on the Commencement Date, unless installed and
paid for by Tenant, shall be and shall remain Landlord’s property and shall not
be removed by Tenant.

16.02. All movable partitions, business
and trade fixtures, machinery and equipment, communications equipment and
office equipment, whether or not attached to or built into the Demised
Premises, which are installed in the Demised Premises by or for the account of
Tenant without expense to Landlord and can be removed without structural damage
to the Building and all furniture, furnishings, and other movable personal
property owned by Tenant and located in the Demised Premises (collectively, “Tenant’s
Property”) shall be and shall remain the property of Tenant and may be removed
by Tenant at any time during the Term; provided that if any of the Tenant’s
Property is removed, Tenant shall repair or pay the cost of repairing any
damage to the Demised Premises, the Building or the Common Areas resulting from
the installation and/or removal thereof. Any equipment or other property for
which Landlord shall have granted any allowance or credit to Tenant shall not
be deemed to have been installed by or for the account of Tenant without
expense to Landlord, shall not be considered as the Tenant’s Property and shall
be deemed the property of Landlord.

16.03. At or before the Expiration Date
or the date of any earlier termination of this Lease, or within fifteen (15)
days after such an earlier termination date, Tenant shall remove from the
Demised Premises all of the Tenant’s Property (except such items thereof as
Landlord shall have expressly permitted to remain, which property shall become
the property of Landlord if not removed), and Tenant shall repair any damage to
the Demised Premises, the Building and the Common Areas resulting from any
installation and/or removal of the Tenant’s Property. Any items of the Tenant’s
Property which shall remain in the Demised Premises after the Expiration Date
or after a period of fifteen (15) days following an earlier termination date,
may, at the option of Landlord, be deemed to have been abandoned, and in such
case such items may be retained by Landlord as its property or disposed of by
Landlord, without accountability, in such manner as Landlord shall determine at
Tenant’s expense.

16.04. At or before
the Expiration Date or the date of any earlier termination of this Lease, or
within fifteen (15) days after such an earlier termination date, Tenant shall,
at Tenant’s sole cost and expense, remove from the Demised Premises such rack
system as may be installed in the Demised Premises and Tenant shall repair any
damage to the Demised Premises, the Building and the Common Areas resulting
from any installation and/or removal thereof; provided, however, that at
Landlord’s option, upon written notice from Landlord, Tenant shall not remove
such rack system, in which event such rack system shall remain on the Demised
Premises and shall not be Tenant’s Property. Such removal, if any, shall be in
accordance with the following procedures, unless Landlord shall advise Tenant
to the contrary by written notice to Tenant:

 24
 

 

Core a hole centered over
the anchor bolt with a core bit 1.5 times larger than the bolt to be removed,
but in no event smaller than 1” in diameter.

Core hole shall be
drilled to a depth equal to the bolt depth, but not less than 2” deep. Remove
the cored concrete with the anchor bolt from the hole. Clean all concrete
slurry and debris from area to be patched.

Fill the cored hole with
a polymer-modified non-shrink mortar, specifically SikaTop 122 or Master
Builders Ceilcote 648 CP, or equivalent, and finish to match surrounding
concrete surface.

ARTICLE 17 - REPAIRS AND
MAINTENANCE

17.01. Tenant shall, throughout the Term,
take good care of the Demised Premises, the fixtures and appurtenances therein,
and shall not do, suffer, or permit any waste with respect thereto. Tenant
shall keep and maintain the Demised Premises including without limitation all
building equipment, windows, doors, loading bay doors and shelters, plumbing
and electrical systems, heating, ventilating and air conditioning (“HVAC”)
systems (whether located in the interior of the Demised Premises or on the
exterior of the Building) in a clean and orderly condition. Tenant shall, at
Landlord’s option, keep and maintain in a clean and orderly condition all HVAC
systems and any other mechanical or other systems exclusively serving the
Demised Premises which are located in whole or in part outside of the Demised
Premises (it being understood and agreed that if Landlord shall elect to keep
and maintain said systems, then the cost of same shall be included in Operating
Expenses). Tenant shall keep and maintain all exterior components of any
windows, doors, loading bay doors and shelters serving the Demised Premises in
a clean and orderly condition. The phrase “keep and maintain” as used herein
includes repairs, replacement and/or restoration as appropriate. Tenant shall
not permit or suffer any over-loading of the floors of the Demised Premises. Tenant
shall be responsible for all repairs, interior and exterior, structural and
nonstructural, ordinary and extraordinary, in and to the Demised Premises, and
the Building (including the facilities and systems thereof) and the Common
Areas the need for which arises out of (a) the performance or existence of
the Tenant’s Work or alterations, (b) the installation, use or operation
of the Tenant’s Property in the Demised Premises, (c) the moving of the
Tenant’s Property in or out of the Building, or (d) the act, omission,
misuse or neglect of Tenant or any of its subtenants or its or their employees,
agents, contractors or invitees. Upon request by Landlord, Tenant shall furnish
Landlord with true and complete copies of maintenance contracts and with copies
of all invoices for work performed, confirming Tenant’s compliance with its
obligations under this Article. In the event Tenant fails to furnish such copies,
Landlord shall have the right, at Tenant’s cost and expense, to conduct such
inspections or surveys as may be required to determine whether or not Tenant is
in compliance with this Article and to have any work required of Tenant
performed at Tenant’s cost and expense. Tenant shall promptly replace all
scratched, damaged or broken doors and glass in and about the Demised Premises
and shall be responsible for all repairs, maintenance and replacement of wall
and floor coverings in the Demised Premises and for the repair and maintenance
of all sanitary and electrical fixtures and equipment therein. The Tenant shall
also arrange for its own cleaning services and rubbish removal. Tenant shall
promptly make all repairs in or to the Demised Premises for which Tenant is
responsible, and any repairs required to be made by Tenant to the mechanical,
electrical, sanitary, heating, 

 25
 

 

ventilating,
air-conditioning or other systems of the Building shall be performed only by
contractor(s) reasonably approved by Landlord. Any other repairs in or to
the Building and the facilities and systems thereof for which Tenant is
responsible shall be performed by Landlord at Tenant’s expense.

17.02. So long as Tenant is not in
default of this Lease, and provided same is not the result of the act,
omission, or negligence of the Tenant, or its agents, representatives or
contractors, Landlord shall be responsible to make all necessary structural
repairs to the Demised Premises at Landlord’s sole cost and expense. “Structural
repairs,” as that term is used in this Article 17.02, shall be expressly
limited to repairs to the Building’s pilings, foundations, structural steel,
and load bearing members as well as the structure supporting the roof membrane
(but not the roof membrane itself). In the event any structural repair is
necessitated by the acts, omissions, or negligence of Tenant, or its agents,
representatives or contractors, then Landlord shall make such repairs at Tenant’s
sole cost and expense. Landlord shall perform normal repairs and maintenance to
the roof membrane, the cost of which shall be included in Operating Expenses,
provided, however, if, in Landlord’s sole but commercially reasonable
discretion, Landlord determines that the roof membrane requires replacement at
any time during the Term of the Lease (which shall include, for the purposes of
this Article 17.02, the period of any option exercised by Tenant pursuant
to Article R2. hereinbelow), Landlord shall be responsible for the cost of
such roof replacement the first time during the Term the roof membrane is so
replaced. Thereafter, the cost of any replacement of the roof membrane shall be
included in the Operating Expenses.

17.03. Tenant shall not permit or suffer
the overloading of the floors of the Demised Premises beyond 250 pounds per
square foot as relates to the warehouse floor, or lesser amount (100 pounds per
square foot) as may be applicable to the second floor and mezzanine area.

17.04. Except as otherwise expressly
provided in this Lease, Landlord shall have no liability to Tenant, nor shall
Tenant’s covenants and obligations under this Lease be reduced or abated in any
manner whatsoever, by reason of any inconvenience, annoyance, interruption or
injury to business arising from Landlord’s doing any repairs, maintenance, or
changes which Landlord is required or permitted by this Lease, or required by
Law, to make in or to any portion of the Building.

17.05. Notwithstanding anything herein
contained to the contrary, Tenant shall be responsible, at Tenant’s cost and
expense, for the repair (including necessary replacements) and maintenance of
the Parking Garage to be constructed by Landlord (or Tenant, as the case may
be) pursuant to Exhibit C to this Lease.

17.06. Landlord agrees to provide Tenant
with the cost benefits of any applicable warranty of the roof membrane, to the
extent same are so available.

ARTICLE 18 - UTILITY
CHARGES

18.01.
Tenant shall pay all charges for gas, water, sewer, electricity, heat or other
utility or service supplied to the Demised Premises as measured by meters
relating to Tenant’s use, and any cost of repair, maintenance, replacement, and
reading of any meters measuring Tenant’s 

 26
 

 

consumption
thereof. If any utilities or services are not separately metered or assessed or
are only partially separately metered or assessed and are used in common with
other tenants or occupants of the Building, Tenant shall pay to Landlord on
demand Tenant’s proportionate share of such charges for utilities and/or
services, which shall be such charges multiplied by a fraction the numerator of
which shall be the Floor Space in the Demised Premises and the denominator of
which shall be the Floor Space of all tenants and occupants of the Building
using such utilities and/or services. In the event Landlord determines that
Tenant’s utilization of any such service exceeds the fraction referred to
above, Tenant’s proportionate share with respect to such service shall, at
Landlord’s option, mean the percentage of any such service (but not less than
the fraction referred to above) which Landlord reasonably estimates as Tenant’s
utilization thereof. Tenant expressly agrees that Landlord shall not be
responsible for the failure of supply to Tenant of any of the aforesaid, or any
other utility service. Landlord shall not be responsible for any public or
private telephone service to be installed in the space, particularly conduit,
if required. If Landlord, or its designee is permitted by law to provide
electric energy to the Demised Premises by re-registering meters or otherwise and
to collect any charges for electric energy, Landlord or its designee shall have
the exclusive right to do so, in which event Tenant shall pay to Landlord or
its designee upon receipt of bills therefor charges for electric energy
provided the rates for such electric energy shall not be more than the rates
Tenant would be charged for electric energy if furnished directly to Tenant by
the public utility which would otherwise have furnished electric energy.

18.02. Tenant’s use of electric energy in
the Demised Premises shall not at any time exceed the capacity of any of the
electrical conductors and equipment in or otherwise serving the Demised
Premises. In order to insure that such capacity is not exceeded and to avert
possible adverse effect upon the Building’s electric service, Tenant shall not,
without Landlord’s prior consent in each instance (which shall not be
unreasonably withheld), connect any fixtures, appliances or equipment to the
Building’s electric distribution system or make any alteration or addition to
the electric system of the Demised Premises existing on the Commencement Date. Should
Landlord grant such consent, all additional risers or other equipment required
therefor shall be provided by Landlord and the reasonable cost thereof shall be
paid by Tenant to Landlord on demand.

18.03.
At Landlord’s option, Landlord or Landlord’s designee shall have the exclusive
right, but not the obligation, to install or cause to be installed solar panels
or other energy generating equipment on the Building (including but not limited
to the roof thereof) for purposes of furnishing in whole or in part electric
energy to the Building (herein an “Energy System”). Tenant shall provide
Landlord or its designee with access to the Demised Premises for the installation,
maintenance and repair of such Energy System as Landlord or its designee may
require, provided, however, Landlord agrees to exercise its rights under this Article 18.03
in such a manner so as to minimize any interference with Tenant’s means of
ingress and egress to and from the Demised Premises as well as Tenant’s use and
occupancy of the Demised Premises for the Permitted Uses.  If installed, such Energy System shall (either
itself or together with such service provided by a public utility provider) meet
the minimum service provided to the Building immediately prior to the
installation of such Energy System. In the event Landlord elects to install or
cause such Energy System to be installed, Tenant shall purchase electric energy
for the Demised Premises from Landlord or its designee and Tenant shall pay the
charges established by Landlord or its designee for such service from time to
time, but not in excess of the rates payable by Tenant from a third party
public utility provider having service available to the Building. Landlord also
reserves the 

 27
 

 

right to
discontinue furnishing electric energy at any time whether or not Tenant is in
default of this Lease upon not less than thirty (30) days’ notice to Tenant.

ARTICLE 19 - ACCESS,
CHANGES AND NAME

19.01. Except for the space within the
inside surfaces of all walls, hung ceilings, floors, windows and doors bounding
the Demised Premises, all of the Building, including, without limitation,
exterior Building walls, core corridor walls and doors and any core corridor
entrance, any terraces or roofs adjacent to the Demised Premises, and any space
in or adjacent to the Demised Premises used for shafts, stacks, pipes,
conduits, fan rooms, ducts, electric or other utilities, sinks or other
Building facilities and the use thereof, as well as access thereto through the
Demised Premises for the purpose of operating, maintenance, decoration and
repair, are reserved to Landlord. Landlord also reserves the right, to install,
erect, use and maintain pipes, ducts and conduits in and through the Demised
Premises, provided such are (i) properly enclosed, (ii) do not
interfere with Tenant’s use and occupancy of the Demised Premises for the
Permitted Uses, and (iii) do not reduce the useable floor area of the
Demised Premises.

19.02. Landlord and its agents shall have
the right to enter and/or pass through the Demised Premises at any time or
times upon reasonable prior notice to Tenant (except in the event of an
emergency when the circumstances shall dictate the nature and extent of notice)
(a) to examine the Demised Premises and to show them to actual and
prospective Superior Lessors, Superior Mortgagees, or prospective purchasers of
the Building, and (b) to make such repairs, alterations, additions and
improvements in or to the Demised Premises and/or in or to the Building or its
facilities and equipment as Landlord is required or desires to make. Landlord
shall be allowed to take all materials into and upon the Demised Premises that
may be required in connection therewith, without any liability to Tenant and
without any reduction of Tenant’s obligations hereunder. During the period of
twelve (12) months prior to the Expiration Date, Landlord and its agents may
exhibit the Demised Premises to prospective tenants.

19.03. If at any time any windows of the
Demised Premises are temporarily darkened or obstructed by reason of any
repairs, improvements, maintenance and/or cleaning in or about the Building, or
if any part of the Building or the Common Areas, other than the Demised Premises,
is temporarily or permanently closed or inoperable, the same shall not be
deemed a constructive eviction and shall not result in any reduction or
diminution of Tenant’s obligations under this Lease.

19.04. Intentionally omitted.

19.05. Landlord reserves the right, at
any time and from time to time, to make such changes, alterations, additions
and improvements in or to the Building and the fixtures and equipment thereof
as Landlord shall deem necessary or desirable provided the same do not
materially interfere with Tenant’s means of ingress and egress to and from the
Demised Premises or Tenant’s use and occupancy of the Demised Premises for the
Permitted Uses.

19.06. Landlord may adopt any name for
the Building. Landlord reserves the right to change the name and/or address of
the Building at any time upon notice to Tenant.

 28
 

 

 

ARTICLE 20 - MECHANICS’
LIENS AND OTHER LIENS

20.01. Nothing contained in this Lease
shall be construed to imply any consent of Landlord to subject Landlord’s
interest or estate to any liability under any mechanic’s, construction or other
lien law. If any lien or any Notice of Intention (to file a lien), Lis Pendens,
or Notice of Unpaid Balance and Right to File Lien is filed against the Land,
the Building, or any part thereof, or the Demised Premises, or any part
thereof, for any work, labor, services or materials claimed to have been
performed or furnished for or on behalf of Tenant, or anyone holding any part
of the Demised Premises through or under Tenant, Tenant shall cause the same to
be canceled and discharged of record by payment, bond or order of a court of
competent jurisdiction within fifteen (15) days after notice by Landlord to
Tenant.

ARTICLE 21 -
NON-LIABILITY AND INDEMNIFICATION

21.01. Neither Landlord nor any partner,
joint venturer, director, officer, agent, servant or employee of Landlord shall
be liable to Tenant for any loss, injury or damage to Tenant or to any other
Person, or to its or their property, irrespective of the cause of such injury,
damage or loss, unless caused by or resulting from the negligence of Landlord,
its agents, servants or employees in the operation or maintenance of the Land
or Building without contributory negligence on the part of Tenant or any of its
subtenants or licensees or its or their employees, agents or contractors. Further,
neither Landlord nor any partner, joint venturer, director, officer, agent,
servant or employee of Landlord shall be liable (a) for any such damage
caused by other tenants or Persons in, upon or about the Land or Building, or
caused by operations in construction of any private, public or quasi-public
work; or (b) even if negligent, for consequential damages arising out of
any loss of use of the Demised Premises or any equipment or facilities therein
by Tenant or any Person claiming through or under Tenant.

21.02. Tenant shall indemnify and hold
harmless Landlord and all Superior Lessors and its and their respective
partners, joint venturers, directors, officers, agents, servants and employees
from and against any and all claims arising from or in connection with (a) the
conduct or management of the Demised Premises or of any business therein, or
any work or thing whatsoever done, or any condition created (other than by
Landlord) in the Demised Premises during the Term or during the period of time,
if any, prior to the Commencement Date that Tenant may have been given access
to the Demised Premises; (b) any act, omission or negligence of Tenant or
any of its subtenants or licensees or its or their partners, joint venturers,
directors, officers, agents, employees or contractors; (c) any accident,
injury or damage whatever (unless caused solely by Landlord’s negligence)
occurring in the Demised Premises; and (d) any breach or default by Tenant
in the full and prompt payment and performance of Tenant’s obligations under
this Lease; together with all costs, expenses and liabilities incurred in or in
connection with each such claim or action or proceeding brought thereon,
including, without limitation, all attorneys’ fees and expenses. In case of any
action or proceeding is brought against Landlord and/or any Superior Lessor
and/or its or their partners, joint venturers, directors, officers, agents
and/or employees by reason of any such claim, Tenant, upon notice from Landlord
or such Superior Lessor, shall resist and defend such action or proceeding (by
counsel reasonably satisfactory to Landlord).

 29
 

 

 

21.03. Landlord
shall indemnify and hold harmless Tenant and its partners, joint venturers,
directors, officers, agents, representatives, servants and employees from and
against any and all claims arising from or in connection with (a) the
conduct and management of the Common Areas or any work or thing whatsoever done
or any condition created in the Common Areas unless caused by Tenant’s
negligence or willful act or the negligence or willful act of Tenant’s agents,
representatives, employees, or contractors; (b) any willful act or
negligence of Landlord; and (c) any breach or default by Landlord in full
and prompt payment and performance of Landlord’s obligations under this Lease;
together with all costs, expenses and liabilities incurred in or in connection
with each such claim or action or proceeding brought thereon, including,
without limitation, all reasonable attorneys’ fees and expenses. In case any
action or proceeding is brought against Tenant by reason of any such claim,
Landlord, upon notice from Tenant, shall resist and defend such action or
proceeding by counsel reasonably satisfactory to Tenant (provided that counsel
provided by Landlord’s insurance carrier shall be deemed reasonably
satisfactory to Tenant).

21.04. Notwithstanding any provision to
the contrary, Tenant shall look solely to the estate and property of Landlord
in and to the Land and Building (or the proceeds received by Landlord on a sale
of such estate and property but not the proceeds of any financing or
refinancing thereof) in the event of any claim against Landlord arising out of
or in connection with this Lease, the relationship of Landlord and Tenant or Tenant’s
use of the Demised Premises or the Common Areas, and Tenant agrees that the
liability of Landlord arising out of or in connection with this Lease, the
relationship of Landlord and Tenant or Tenant’s use of the Demised Premises or
the Common Areas shall be limited to such estate and property of Landlord (or
sale proceeds). No other properties or assets of Landlord or any partner, joint
venturer, director, officer, agent, servant or employee of Landlord shall be
subject to levy, execution or other enforcement procedures for the satisfaction
of any judgement (or other judicial process) or for the satisfaction of any
other remedy of Tenant arising out of, or in connection with, this Lease, the
relationship of Landlord and Tenant or Tenant’s use of the Demised Premises or
the Common Areas and if Tenant shall acquire a lien on or interest in any other
properties or assets by judgment or otherwise, Tenant shall promptly release
such lien on or interest in such other properties and assets by executing,
acknowledging and delivering to Landlord an instrument to that effect prepared
by Landlord’s attorneys. Tenant hereby waives the right of specific performance
and any other remedy allowed in equity if specific performance or such other
remedy could result in any liability of Landlord for the payment of money to
Tenant, or to any court or governmental authority (by way of fines or
otherwise) for Landlord’s failure or refusal to observe a judicial decree or
determination, or to any third party.

ARTICLE 22 - DAMAGE OR
DESTRUCTION

22.01. If the Building or the Demised
Premises shall be partially or totally damaged or destroyed by fire or other
casualty (and if this Lease shall not be terminated as in this Article 22
hereinafter provided), Landlord shall repair the damage and restore and rebuild
the Building and/or the Demised Premises (except for the Tenant’s Property)
with reasonable dispatch after notice to it of the damage or destruction and
the collection of the insurance proceeds attributable to such damage.

 

 30

 

22.02. Subject to the provisions of Section 22.05,
if all or part of the Demised Premises shall be damaged or destroyed or
rendered completely or partially untenantable on account of fire or other
casualty, the Rent shall be abated or reduced, as the case may be, in the
proportion that the untenantable area of the Demised Premises bears to the
total area of the Demised Premises (to the extent of rent insurance proceeds
received by the Landlord) for the period from the date of the damage or
destruction to (a) the date the damage to the Demised Premises shall be
substantially repaired, or (b) if the Building and not the Demised
Premises is so damaged or destroyed, the date on which the Demised Premises
shall be made tenantable; provided, however, should Tenant reoccupy a portion
of the Demised Premises during the period the repair or restoration work is
taking place and prior to the date that the Demised Premises are substantially
repaired or made tenantable the Rent allocable to such reoccupied portion, based
upon the proportion which the area of the reoccupied portion of the Demised
Premises bears to the total area of the Demised Premises, shall be payable by
Tenant from the date of such occupancy.

22.03. If (a) the Building or the
Demised Premises shall be totally damaged or destroyed by fire or other
casualty, or (b) the Building shall be so damaged or destroyed by fire or
other casualty (whether or not the Demised Premises are damaged or destroyed)
that its repair or restoration requires the expenditure, as estimated by a
reputable contractor or architect designated by Landlord, of more than thirty
five percent (35%) (or fifteen percent [15%] if such casualty occurs during the
last two [2] years of the Term) of the full insurable value of the Building
immediately prior to the casualty, or (c) the Building shall be damaged or
destroyed by fire or other casualty (whether or not the Demised Premises are
damaged or destroyed) and either the loss shall not be covered by Landlord’s
insurance or the net insurance proceeds (after deducting all expenses in
connection with obtaining such proceeds) shall, in the estimation of a
reputable contractor or architect designated by Landlord be insufficient to pay
for the repair or restoration work, then in either such case Landlord may
terminate this Lease by giving Tenant notice to such effect within ninety (90)
days after the date of the fire or other casualty. Notwithstanding any of the
foregoing to the contrary, if the Building shall be so damaged or destroyed by
fire or other casualty so that it is rendered untenantable for Tenant’s use and
occupancy and its repair would take more than twelve (12) months from the date
of the fire or other casualty to accomplish (the “Restoration Period”), as
reasonably estimated by the Architect, (the “Architect’s Determination”), then
Tenant shall have the right to terminate this Lease upon written notice to
Landlord given within thirty (30) days of notice of the Architect’s
Determination. Landlord shall give Tenant written notice of the Architect’s
Determination within sixty (60) days of such damage or destruction.

22.04. Except as provided in Article 22.03
above, Tenant shall not be entitled to terminate this Lease and no damages,
compensation or claim shall be payable by Landlord for inconvenience, loss of
business or annoyance arising from any repair or restoration of any portion of
the Demised Premises or of the Building pursuant to this Article 22. Landlord
shall use its best efforts to make such repair or restoration promptly and in
such manner as not unreasonably to interfere with Tenant’s use and occupancy of
the Demised Premises, but Landlord shall not be required to do such repair or
restoration work except during Landlord’s business hours on business days.

22.05. Notwithstanding any of the
foregoing provisions of this Article 22, if by reason of some act or
omission on the part of Tenant or any of its subtenants or its or their
partners, directors, officers, servants, employees, agents or contractors,
either (a) Landlord or any Superior Lessor or 

 31
 

 

any
Superior Mortgagee shall be unable to collect all of the insurance proceeds
(including, without limitation, rent insurance proceeds) applicable to damage
or destruction of the Demised Premises or the Building by fire or other
casualty, or (b) the Demised Premises or the Building shall be damaged or
destroyed or rendered completely or partially untenantable on account of fire
or other casualty, then, without prejudice to any other remedies which may be
available against Tenant, there shall be no abatement or reduction of the Rent.
Further, nothing contained in this Article 22 shall relieve Tenant from
any liability that may exist as a result of any damage or destruction by fire
or other casualty.

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

22.07. The provisions of this Article 22
shall be deemed an express agreement governing any case of damage or
destruction of the Demised Premises and/or Building by fire or other casualty,
and any law providing for such a contingency in the absence of an express
agreement, now or hereafter in force, shall have no application in such case.

ARTICLE 23 - EMINENT
DOMAIN

23.01. If the whole of the Demised
Premises shall be taken by any public or quasi-public authority under the power
of condemnation, eminent domain or expropriation, or in the event of conveyance
of the whole of the Demised Premises in lieu thereof, this Lease shall
terminate as of the day possession shall be taken by such authority. If 25% or
less of the Floor Space of the Demised Premises shall be so taken or conveyed,
this Lease shall terminate only in respect of the part so taken or conveyed as
of the day possession shall be taken by such authority. If more than 25% of the
Floor Space of the Demised Premises shall be so taken or conveyed, this Lease
shall terminate only in respect of the part so taken or conveyed as of the day
possession shall be taken by such authority, but either party shall have the
right to terminate this Lease upon notice given to the other party within 30
days after such taking possession. If more than 25% of the Floor Space of the
Building shall be so taken or conveyed, Landlord may, by notice to Tenant,
terminate this Lease as of the day possession shall be taken. If so much of the
parking facilities shall be so taken or conveyed that the number of parking spaces
necessary, in Landlord’s judgment, for the continued operation of the Building
shall not be available, Landlord shall, by notice to Tenant, terminate this
Lease as of the day possession shall be taken. If this Lease shall continue in
effect as to any portion of the Demised Premises not so taken or conveyed, the
Rent shall be computed as of the day possession shall be taken on the basis of
the remaining Floor Space of the Demised Premises. Except as specifically
provided herein, in the event of any such taking or conveyance there shall be
no reduction in Rent. If this Lease shall continue in effect, Landlord shall,
at its expense, but shall be obligated only to the extent of the net award or
other compensation (after deducting all expenses in connection with obtaining
same) available to Landlord for the improvements taken or conveyed (excluding
any award or other compensation for land or for the unexpired portion of the
term of any Superior Lease), make all necessary alterations so as to constitute
the remaining Building a complete architectural and tenantable unit, except for
the Tenant’s Property, and Tenant shall make all alterations or replacements to
the Tenant’s Property and decorations in the Demised Premises. 

 32
 

 

All
awards and compensation for any taking or conveyance, whether for the whole or
a part of the Land or Building, the Demised Premised or otherwise, shall be the
property of Landlord, and Tenant hereby assigns to Landlord all of Tenant’s
right, title and interest in and to any and all such awards and compensation,
including, without limitation, any award or compensation for the value of the
unexpired portion of the Term. Tenant shall be entitled to claim, prove and
receive in the condemnation proceeding such award or compensation as may be allowed
for the Tenant’s Property and for loss of business, good will, and depreciation
or injury to and cost of removal of the Tenant’s Property, but only if such
award or compensation shall be made by the condemning authority in addition to,
and shall not result in a reduction of, the award or compensation made by it to
Landlord.

23.02. If the temporary use or occupancy
of all or any part of the Demised Premises shall be taken during the Term,
Tenant shall be entitled, except as hereinafter set forth, to receive that
portion of the award or payment for such taking which represents compensation
for the use and occupancy of the Demised Premises, for the taking of the Tenant’s
Property and for moving expenses, and Landlord shall be entitled to receive
that portion which represents reimbursement for the cost of restoration of the
Demised Premises. This Lease shall be and remain unaffected by such taking and
Tenant shall continue to be responsible for all of its obligations hereunder
insofar as such obligations are not affected by such taking and shall continue
to pay the Rent in full when due. If the period of temporary use or occupancy
shall extend beyond the Expiration Date, that part of the award or payment
which represents compensation for the use and occupancy of the Demised Premises
(or a part thereof) shall be divided between Landlord and Tenant so that Tenant
shall receive (except as otherwise provided below) so much thereof as
represents compensation for the period up to and including the Expiration Date and
Landlord shall receive so much thereof as represents compensation for the
period after the Expiration Date. All monies to be paid to Tenant as, or as
part of, an award or payment for temporary use and occupancy for a period
beyond the date to which the Rent has been paid shall be received, held and
applied by the first Superior Mortgagee (or if there is no Superior Mortgagee,
by Landlord as a trust fund) for payment of the Rent becoming due hereunder.

ARTICLE 24 - SURRENDER

24.01. On the Expiration Date, or upon
any earlier termination of this Lease, or upon any re-entry by Landlord upon
the Demised Premises, Tenant shall quit and surrender the Demised Premises to
Landlord “broom-clean” and in good order, condition and repair, except for
ordinary wear and tear and such damage or destruction as Landlord is required
to repair or restore under this Lease, and Tenant shall remove all of Tenant’s
Property therefrom except as otherwise expressly provided in this Lease.

24.02. If Tenant remains in possession of
the Demised Premises after the expiration of the Term, Tenant shall be deemed
to be occupying the Demised Premises at the sufferance of Landlord subject to
all of the provisions of this Lease, except that the monthly Fixed Rent shall
be twice the Fixed Rent in effect during the last month of the Term.

 33
 

 

24.03. No act or thing done by Landlord
or its agents shall be deemed an acceptance of a surrender of the Demised
Premises, and no agreement to accept such surrender shall be valid unless in
writing and signed by Landlord.

ARTICLE 25 - CONDITIONS
OF LIMITATION

25.01. This Lease is subject to the
limitation that whenever Tenant or any Guarantor (a) shall make an
assignment for the benefit of creditors, or (b) shall commence a voluntary
case or have entered against it an order for relief under any chapter of the
Federal Bankruptcy Code (Title 11 of the United States Code) or any similar
order or decree under any federal or state law, now in existence, or hereafter
enacted having the same general purpose, and such order or decree shall have
not been stayed or vacated within 30 days after entry, or (c) shall cause,
suffer, permit or consent to the appointment of a receiver, trustee,
administrator, conservator, sequestrator, liquidator or similar official in any
federal, state or foreign judicial or nonjudicial proceeding, to hold,
administer and/or liquidate all or substantially all of its assets, and such
appointment shall not have been revoked, terminated, stayed or vacated and such
official discharged of his duties within 30 days of his appointment, then
Landlord, at any time after the occurrence of any such event, may give Tenant a
notice of intention to end the Term at the expiration of five (5) days
from the date of service of such notice of intention, and upon the expiration
of said five (5) day period, whether or not the Term shall theretofore
have commenced, this Lease shall terminate with the same effect as if that day
were the expiration date of this Lease, but Tenant shall remain liable for
damages as provided in Article 27.

25.02. This Lease is subject to the
further limitations that: (a) if Tenant shall default in the payment of
any Rent, or (b) if Tenant shall, whether by action or inaction, be in
default of any of its obligations under this Lease (other than a default in the
payment of Rent) and such default shall continue and not be remedied within
fifteen (15) days after Landlord shall have given to Tenant a notice specifying
the same, or, in the case of a default which cannot with due diligence be cured
within a period of fifteen (15) days and the continuance of which for the
period required for cure will not subject Landlord or any Superior Lessor to
prosecution for a crime or offense (as more particularly described in the
penultimate sentence of Section 12.02) or termination of any Superior
Lease or foreclosure of any Superior Mortgage, if Tenant shall not, (i) within
said fifteen (15) day period advise Landlord of Tenant’s intention to take all
steps necessary to remedy such default, (ii) duly commence within said
fifteen (15) day period, and thereafter diligently prosecute to completion all
steps necessary to remedy the default, and (iii) complete such remedy
within a reasonable time after the date of said notice by Landlord, or (c) if
any event shall occur or any contingency shall arise whereby this Lease would,
by operation of law or otherwise, devolve upon or pass to any person, firm or
corporation other than Tenant, except as expressly permitted by Article 11,
or (d) if Tenant shall vacate or abandon the Demised Premises, or (e) if
there shall be any default by Tenant (or any person which, directly or
indirectly, controls, is controlled by, or is under common control with Tenant)
under any other lease with Landlord (or any person which, directly or indirectly,
controls, is controlled by, or is under common control with Landlord) which
shall not be remedied within the applicable grace period, if any, provided
therefor under such other lease, then in any of said cases Landlord may give to
Tenant a notice of intention to end the Term at the expiration of five (5) days
from the date of the service of such notice of intention, and upon 

 34
 

 

the
expiration of said five (5) days, whether or not the Term shall
theretofore have commenced, this Lease shall terminate with the same effect as
if that day were the expiration date of this Lease, but Tenant shall remain
liable for damages as provided in Article 27.

ARTICLE 26 - RE-ENTRY BY
LANDLORD

26.01. If Tenant shall default in the
payment of any Rent, or if this Lease shall terminate as provided in Article 25,
Landlord or Landlord’s agents and employees may immediately or at any time
thereafter re-enter the Demised Premises, or any part thereof, either by
summary dispossess proceedings or by any suitable action or proceeding at law
without being liable to indictment, prosecution or damages therefor, and may
repossess the same, and may remove any Person therefrom, to the end that
Landlord may have, hold and enjoy the Demised Premises. The word “re-enter,” as
used herein, is not restricted to its technical legal meaning. If this Lease is
terminated under the provisions of Article 25, or if Landlord shall
re-enter the Demised Premises under the provisions of this Article 26,  or in the event of the termination of this
Lease, or of re-entry, by or under any summary dispossess or other proceedings
or action or any provision of law by reason of default hereunder on the part of
Tenant, Tenant shall thereupon pay to Landlord the Rent payable up to the time
of such termination of this Lease, or of such recovery of possession of the
Demised Premises by Landlord, as the case may be, and shall also pay to
Landlord damages as provided in Article 27.

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

26.03. If this Lease shall terminate
under the provisions of Article 25, or if Landlord shall re-enter the
Demised Premises under the provisions of this Article 26, or in the event
of the termination of this Lease, or of re-entry, by or under any summary
dispossess or other proceeding or action or any provision of law by reason of
default hereunder on the part of Tenant, Landlord shall be entitled to retain
all monies, if any, paid by Tenant to Landlord, whether as Advance Rent,
security or otherwise, but such monies shall be credited by Landlord against
any Rent due from Tenant at the time of such termination or re-entry or, at
Landlord’s option, against any damages payable by Tenant under Article 27
or pursuant to law.

ARTICLE 27 - DAMAGES

27.01. If this Lease is terminated under
the provisions of Article 25 or if Landlord shall re-enter the Demised
Premises under the provisions of Article 26, or in the event of the
termination of this Lease, or of re-entry, by or under any summary dispossess
or other proceeding or action or any provision of law by reason of default
hereunder on the part of Tenant, Tenant shall pay as Additional Charges to Landlord,
at the election of Landlord, either or any combination of:

 35
 

 

(a) 
a sum which at the time of such termination of this Lease or at the time of any
such re-entry by Landlord, as the case may be, represents the then value of the
excess, if any, of (i) the aggregate amount of the Rent which would have
been payable by Tenant (conclusively presuming the average monthly Additional
Charges to be the same as were the average monthly Additional Charges payable
for the year, or if less than 365 days have then elapsed since the Commencement
Date, the partial year, immediately preceding such termination or re-entry) for
the period commencing with such earlier termination of this Lease or the date
of any such re-entry, as the case may be, and ending with the Expiration Date,
over (ii) the aggregate rental value of the Demised Premises for the same
period; or

(b) 
sums equal to the Fixed Rent and the Additional Charges which would have been
payable by Tenant had this Lease not so terminated, or had Landlord not so re-entered
the Demised Premises, payable upon the due dates therefor specified herein
following such termination or such re-entry and until the Expiration Date,
provided, however, that if Landlord shall relet the Demised Premises during
said period, Landlord shall credit Tenant with the net rents received by
Landlord from such reletting, such net rents to be determined by first
deducting from the gross rents as and when received by Landlord from such
reletting the expenses incurred or paid by Landlord in terminating this Lease
or in re-entering the Demised Premises and in securing possession thereof, as
well as the expenses of reletting, including, without limitation, altering and
preparing the Demised Premises for new tenants, brokers’ commissions, legal fees,
and all other expenses properly chargeable against the Demised Premises and the
rental therefrom, it being understood that any such reletting may be for a
period shorter or longer than the period ending on the Expiration Date; but in
no event shall Tenant be entitled to receive any excess of such net rents over
the sums payable by Tenant to Landlord hereunder, nor shall Tenant be entitled
in any suit for the collection of damages pursuant to this subsection (b) to
a credit in respect of any rents from a reletting, except to the extent that
such net rents are actually received by Landlord. If the Demised Premises or
any part thereof should be relet in combination with other space, then proper
apportionment on a square foot basis shall be made of the rent received from
such reletting and of the expenses of reletting; or

(c) a
sum which at the time of such termination of this Lease or at the time of any
such re-entry by Landlord, as the case may be, represents the aggregate amount
of the Rent which would have been payable by Tenant (conclusively presuming the
average monthly Additional Charges to be the same as were the average monthly
Additional Charges payable for the year, or if less than 365 days have then
elapsed since the Commencement Date, the partial year, immediately preceding
such termination or re-entry) for the period commencing with such earlier
termination of this Lease or the date of any such re-entry, as the case may be,
and ending with the Expiration Date; provided, however, that if Landlord shall
relet the Demised Premises during said period, Landlord shall credit Tenant
with the net rents received by Landlord from such reletting, such net rents to
be determined by first deducting from the gross rents as and when received by
Landlord from such reletting the 

 36
 

 

expenses
incurred or paid by Landlord in terminating this Lease or in re-entering the
Demised Premises and in securing possession thereof, as well as the expenses of
reletting, including, without limitation, altering and preparing the Demised
Premises for new tenants, brokers’ commissions, legal fees, and all other
expenses properly chargeable against the Demised Premises and the rental
therefrom, it being understood that any such reletting may be for a period
shorter or longer than the period ending on the Expiration Date; but in no
event shall Landlord have to account to Tenant for any rents in excess of the
total damages recovered by Landlord hereunder, nor shall Tenant be entitled in
any suit for the collection of damages pursuant to this subdivision (c) to
a credit in respect of any rents from a reletting, except to the extent that
such net rents are actually received by Landlord. If the Demised Premises or
any part thereof should be relet in combination with other space, then proper
apportionment on a square foot basis shall be made of the rent received from
such reletting and of the expenses of reletting.

If
the Demised Premises or any part thereof should be relet by Landlord before
presentation of proof of such damages to any court, commission or tribunal, the
amount of rent reserved upon such reletting shall, prima facie, be the fair and
reasonable rental value for the Demised Premises, or part thereof, so relet
during the term of the reletting. Landlord shall not be liable in any way whatsoever
for its failure to relet the Demised Premises or any part thereof, or if the
Demised Premises or any part thereof are relet, for its failure to collect the
rent under such reletting, and no such failure to relet or failure to collect
rent shall release or affect Tenant’s liability for damages or otherwise under
this Lease. Furthermore, Tenant, on behalf of itself and any and all persons
claiming through or under Tenant, does hereby waive and surrender all right and
privilege which it, they or any of them might have under or by reason of any
present or future law or applicable governmental or judicial authority, to
require that Landlord mitigate damages sustained or to be sustained by Landlord
hereunder as a result of a default by Tenant and/or any and all persons
claiming through or under Tenant under this Lease. In the event Tenant, on
behalf of itself or any and all persons claiming through or under Tenant,
attempts to raise a defense or assert any affirmative obligations on Landlord’s
part to mitigate such damages or relet the Demised Premises, Tenant shall
reimburse Landlord for any costs and expenses incurred by Landlord as a result
of any such defense or assertion, including but not limited to Landlord’s
attorneys’ fees incurred in connection therewith.

27.02. Suit or suits for the recovery of
such damages or, any installments thereof, may be brought by Landlord at any
time and from time to time at its election, and nothing contained herein shall
be deemed to require Landlord to postpone suit until the date when the Term
would have expired if it had not been so terminated under the provisions of Article 25,
or under any provision of law, or had Landlord not re-entered the Demised
Premises. Nothing herein contained shall be construed to limit or preclude
recovery by Landlord against Tenant of any sums or damages to which, in
addition to the damages particularly provided above, Landlord may lawfully be
entitled by reason of any default hereunder on the part of Tenant. Nothing
herein contained shall be construed to limit or prejudice the right of Landlord
to prove for and obtain as damages by reason of the termination of this Lease
or re-entry of the Demised Premises for the default of Tenant under this Lease,
an amount equal to the maximum allowed by any statute or rule of law in
effect at the 

 37
 

 

time,
whether or not such amount be greater than, equal to, or less than any of the
sums referred to in Section 27.01.

27.03. In addition, if this Lease is
terminated under the provisions of Article 25, or if Landlord shall
re-enter the Demised Premises under the provisions of Article 26, Tenant
covenants that:  (a) the Demised
Premises then shall be in the same condition as that in which Tenant has agreed
to surrender the same to Landlord at the Expiration Date; (b) Tenant shall
have performed prior to any such termination any obligation of Tenant contained
in this Lease for the making of any alteration or for restoring or rebuilding
the Demised Premises or the Building, or any part thereof; and (c) for the
breach of any covenant of Tenant set forth above in this Section 27.03,
Landlord shall be entitled immediately, without notice or other action by
Landlord, to recover, and Tenant shall pay, as and for liquidated damages
therefor, the cost of performing such covenant (as estimated by an independent
contractor selected by Landlord).

27.04. In addition to any other remedies
Landlord may have under this Lease, and without reducing or adversely affecting
any of Landlord’s rights and remedies under this Article 27, if any Rent
or damages payable hereunder by Tenant to Landlord are not paid upon demand
therefor, the same shall bear interest at the Late Payment Rate or the maximum
rate permitted by law, whichever is less, from the due date thereof until paid,
and the amounts of such interest shall be Additional Charges hereunder.

ARTICLE 28 - AFFIRMATIVE
WAIVERS

28.01. Tenant, on behalf of itself and
any and all persons claiming through or under Tenant, does hereby waive and
surrender all right and privilege which it, they or any of them might have
under or by reason of any present or future law, to redeem the Demised Premises
or to have a continuance of this Lease after being dispossessed or ejected from
the Demised Premises by process of law or under the terms of this Lease or
after the termination of this Lease as provided in this Lease.

28.02. Landlord and Tenant hereby waive
trial by jury in any action, proceeding or counterclaim brought by either
against the other on any matter whatsoever arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, and Tenant’s
use or occupancy of the Demised Premises and use of the Common Area, including,
without limitation, any claim of injury or damage, and any emergency and other
statutory remedy with respect thereto. Tenant shall not interpose any
counterclaim of any kind (except compulsory counterclaims as and if permitted
by New Jersey Court Rules) in any action or proceeding commenced by Landlord to
recover possession of the Demised Premises.

ARTICLE 29 - NO WAIVERS

29.01. The failure of either party to
insist in any one or more instances upon the strict performance of any one or
more of the obligations of this Lease, or to exercise any election herein
contained, shall not be construed as a waiver or relinquishment for the future
of the performance of such one or more obligations of this Lease or of the
right to exercise such election, but the same 

 38
 

 

shall
continue and remain in full force and effect with respect to any subsequent
breach, act or omission. The receipt by Landlord of Fixed Rent or Additional
Charges with knowledge of breach by Tenant of any obligation of this Lease
shall not be deemed a waiver of such breach.

ARTICLE 30 - CURING
TENANT’S DEFAULTS

30.01.
If Tenant shall default in the performance of any of Tenant’s obligations under
this Lease beyond the applicable notice and cure period, Landlord, without
thereby waiving such default, may (but shall not be obligated to) perform the
same for the account and at the expense of Tenant, without notice in a case of
emergency, and in any other case only if such default continues after the
expiration of fifteen (15) days from the date Landlord gives Tenant notice of
the default. Charges for any expenses incurred by Landlord in connection with
any such performance by it for the account of Tenant, and charges for all
costs, expenses and disbursements of every kind and nature whatsoever,
including reasonable attorneys’ fees and expenses, involved in collecting or
endeavoring to collect the Rent or any part thereof or enforcing or endeavoring
to enforce any rights against Tenant or Tenant’s obligations hereunder, under
or in connection with this Lease or pursuant to law, including any such cost,
expense and disbursement involved in instituting and prosecuting summary
proceedings or in recovering possession of the Demised Premises after default
by Tenant or upon the expiration of the Term or sooner termination of this
Lease, and interest on all sums advanced by Landlord under this Article at
the Late Payment Rate or the maximum rate permitted by law, whichever is less,
shall be payable by Tenant and may be invoiced by Landlord to Tenant monthly,
or immediately, or at any time, at Landlord’s option, and such amounts shall be
due and payable upon demand.

ARTICLE 31 - BROKER

31.01. Tenant represents that no broker
except the Broker was instrumental in bringing about or consummating this Lease
and that Tenant had no conversations or negotiations with any broker except the
Broker concerning the leasing of the Demised Premises. Tenant agrees to
indemnify and hold harmless Landlord against and from any claims for any
brokerage commissions and all costs, expenses and liabilities in connection
therewith, including, without limitation, attorneys’ fees and expenses, arising
out of any conversations or negotiations had by Tenant with any broker other
than the Broker. Landlord shall pay any brokerage commissions due the Broker
pursuant to a separate agreement between Landlord and the Broker.

ARTICLE 32 - NOTICES

32.01. Any notice, statement, demand,
consent, approval or other communication required or permitted to be given,
rendered or made by either party to the other, pursuant to this Lease or
pursuant to any applicable Legal Requirement, shall be in writing and shall be
deemed to have been properly given, rendered or made only if (i) hand
delivered, or (ii) sent by United States registered or certified mail,
return receipt requested, or (iii) sent by overnight courier, addressed to
the other party at the address hereinabove set forth [except that after the
Commencement Date, Tenant’s address, unless Tenant shall give notice to the
contrary, shall be the Building( Attention: Real Estate, with a copy to the
General Counsel’s Office) as to Landlord, to the attention of General Counsel
with a concurrent notice to the attention of Controller, and shall be deemed to
have been 

 39
 

 

given,
rendered or made on the second day after the day so mailed, unless mailed
outside the State of New Jersey, in which case it shall be deemed to have been
given, rendered or made on the third business day after the day so mailed. Either
party may, by notice as aforesaid, designate a different address or addresses
for notices, statements, demands, consents, approvals or other communications
intended for it. In addition, upon and to the extent requested by Landlord,
copies of notices shall be sent to the Superior Mortgagee.

ARTICLE 33 - ESTOPPEL
CERTIFICATES

33.01. Tenant shall, at any time and from
time to time, as requested by Landlord, upon not less than twenty (20) days’
prior notice, execute and deliver to the Landlord or a Superior Mortgagee or
Superior Lessor certifying that this Lease is unmodified and in full force and
effect (or if there have been modifications, that the same is in full force and
effect as modified and stating the modifications), certifying the dates to
which the Fixed Rent and Additional Charges have been paid, stating whether or
not, to the best knowledge of the party giving the statement, the requesting
party is in default in performance of any of its obligations under this Lease,
and, if so, specifying each such default of which the party giving the
statement shall have knowledge, and stating whether or not, to the best
knowledge of the party giving the statement, any event has occurred which with
the giving of notice or passage of time, or both, would constitute such a
default of the requesting party, and, if so, specifying each such event; any
such statement delivered pursuant hereto shall be deemed a representation and
warranty to be relied upon by the party requesting the certificate and by
others with whom such party may be dealing, regardless of independent
investigation. Tenant also shall include in any such statement such other
information concerning this Lease as Landlord may reasonably request. In the
event Tenant shall be requested by Landlord to execute more than one (1) estoppel
certificate in any one Calendar Year of the Term, the first Estoppel
Certificate so requested will be free of charge; thereafter Landlord shall be
obligated to pay Tenant an administrative of fee of $150 for each Estoppel
Certificate requested (after the first in any Calendar Year.)

ARTICLE 34 -
INTENTIONALLY OMITTED

ARTICLE 35 - MEMORANDUM
OF LEASE

35.01. Tenant shall not record this Lease.
However, at the request of Landlord, Tenant shall promptly execute, acknowledge
and deliver to Landlord a memorandum of lease in respect of this Lease
sufficient for recording. Such memorandum shall not be deemed to change or
otherwise affect any of the obligations or provisions of this Lease. Whichever
party records such memorandum of Lease shall pay all recording costs and
expenses, including any taxes that are due upon such recording.

ARTICLE 36 -
MISCELLANEOUS

36.01. Tenant expressly acknowledges and
agrees that Landlord has not made and is not making, and Tenant, in executing
and delivering this Lease, is not relying upon, any warranties, 

 40

 

representations,
promises or statements, except to the extent that the same are expressly set
forth in this Lease or in any other written agreement(s) which may be made
between the parties concurrently with the execution and delivery of this Lease.
All understandings and agreements heretofore had between the parties are merged
in this Lease and any other written agreement(s) made concurrently
herewith, which alone fully and completely express the agreement of the parties
and which are entered into after full investigation. Neither party has relied
upon any statement or representation not embodied in this Lease or in any other
written agreement(s) made concurrently herewith. The submission of this
Lease to Tenant does not constitute by Landlord a reservation of, or an option
to Tenant for, the Demised Premises, or an offer to lease on the terms set
forth herein and this Lease shall become effective as a lease agreement only
upon execution and delivery thereof by Landlord and Tenant.

36.02. No agreement shall be effective to
change, modify, waive, release, discharge, terminate or effect an abandonment
of this Lease, in whole or in part, unless such agreement is in writing, refers
expressly to this Lease and is signed by the party against whom enforcement of
the change, modification, waiver, release, discharge, termination or
effectuation of abandonment is sought.

36.03. If Tenant shall at any time
request Landlord to sublet or let the Demised Premises for Tenant’s account,
Landlord or its agent is authorized to receive keys for such purposes without
releasing Tenant from any of its obligations under this Lease, and Tenant
hereby releases Landlord of any liability for loss or damage to any of the
Tenant’s Property in connection with such subletting or letting.

36.04. Except as otherwise expressly
provided in this Lease, the obligations under this Lease shall bind and benefit
the successors and assigns of the parties hereto with the same effect as if
mentioned in each instance where a party is named or referred to; provided,
however, that (a) no violation of the provisions of Article 11 shall
operate to vest any rights in any successor or assignee of Tenant and (b) the
provisions of this Section 36.04 shall not be construed as modifying the
conditions of limitation contained in Article 25.

36.05. Except for Tenant’s obligations to
pay Rent, the time for Landlord or Tenant, as the case may be, to perform any
of its respective obligations hereunder shall be extended if and to the extent
that the performance thereof shall be prevented due to any Unavoidable Delay. Except
as expressly provided to the contrary, the obligations of Tenant hereunder
shall not be affected, impaired or excused, nor shall Landlord have any
liability whatsoever to Tenant, (a) because Landlord is unable to fulfill,
or is delayed in fulfilling, any of its obligations under this Lease due to any
of the matters set forth in the first sentence of this Section 36.05, or (b) because
of any failure or defect in the supply, quality or character of electricity,
water or any other utility or service furnished to the Demised Premises for any
reason beyond Landlord’s reasonable control.

36.06. Any liability for payments
hereunder (including, without limitation, Additional Charges) shall survive the
expiration of the Term or earlier termination of this Lease.

36.07. If Tenant shall request Landlord’s
consent and Landlord shall fail or refuse to give such consent, Tenant shall
not be entitled to any damages for any withholding by Landlord of its 

 41
 

 

consent;
Tenant’s sole remedy shall be an action for specific performance or injunction,
and such remedy shall be available only in those cases where Landlord has
expressly agreed in writing not to unreasonably withhold or delay its consent
or where as a matter of law Landlord may not unreasonably withhold its consent.

36.08. If an excavation shall be made
upon land adjacent to or under the Building, or shall be authorized to be made,
Tenant shall afford to the Person causing or authorized to cause such
excavation, license to enter the Demised Premises for the purpose of performing
such work as said Person shall reasonably deem necessary or desirable to
preserve and protect the Building from injury or damage and to support the same
by proper foundations, without any claim for damages or liability against
Landlord and without reducing or otherwise affecting Tenant’s obligations under
this Lease.

36.09. Tenant shall not exercise its
rights under Article 15 or any other provision of this Lease in a manner
which would violate Landlord’s union contracts or create any work stoppage,
picketing, labor disruption or dispute or any interference with the business of
Landlord or any tenant or occupant of the Building.

36.10. Tenant shall give prompt notice to
Landlord of (a) any occurrence in or about the Demised Premises for which
Landlord might be liable, (b) any fire or other casualty in the Demised
Premises, (c) any damage to or defect in the Demised Premises, including
the fixtures and equipment thereof, for the repair of which Landlord might be
responsible, and (d) any damage to or defect in any part of the Building’s
sanitary, electrical, heating, ventilating, air-conditioning, elevator or other
systems located in or passing through the Demised Premises or any part thereof.

36.11. This Lease shall be governed by
and construed in accordance with the laws of the State of New Jersey. Tenant
hereby irrevocably agrees that any legal action or proceeding arising out of or
relating to this Lease may be brought in the Courts of the State of New Jersey,
or the Federal District Court for the District of New Jersey, as Landlord may
elect. By execution and delivery of this Lease, Tenant hereby irrevocably
accepts and submits generally and unconditionally for itself and with respect
to its properties, to the jurisdiction of any such court in any such action or
proceeding, and hereby waives in the case of any such action or proceeding
brought in the courts of the State of New Jersey, or Federal District Court for
the District of New Jersey, any defenses based on jurisdiction, venue or forum
non conveniens. If any provision of this Lease shall be invalid or
unenforceable, the remainder of this Lease shall not be affected and shall be
enforced to the extent permitted by law. The table of contents, captions,
headings and titles in this Lease are solely for convenience of reference and
shall not affect its interpretation. This Lease shall be construed without
regard to any presumption or other rule requiring construction against the
party causing this Lease to be drafted. If any words or phrases in this Lease
shall have been stricken out or otherwise eliminated, whether or not any other
words or phrases have been added, this Lease shall be construed as if the words
or phrases so stricken out or otherwise eliminated were never included in this
Lease and no implication or inference shall be drawn from the fact that said
words or phrases were so stricken out or otherwise eliminated. Each covenant,
agreement, obligation or other provision of this Lease on Tenant’s part to be
performed, shall be deemed and construed as a separate and independent covenant
of Tenant, not dependent on any other provision of this Lease. All terms and
words used in this Lease, regardless of the number or gender in which 

 42
 

 

they
are used, shall be deemed to include any other number and any other gender as
the context may require. Tenant specifically agrees to pay all of Landlord’s
costs, charges and expenses, including attorneys’ fees, incurred in connection
with any document review requested by Tenant and upon submission of bills
therefor. In the event Landlord permits Tenant to examine Landlord’s books and
records with respect to any Additional Charge imposed under this Lease, such
examination shall be conducted at Tenant’s sole cost and expense and shall be
conditioned upon Tenant retaining an independent accounting firm for such
purposes which shall not be compensated on any type of contingent fee basis
with respect to such examination. Wherever in this Lease or by law Landlord is
authorized to charge or recover costs and expenses for legal services or
attorneys’ fees, same shall include, without limitation, the costs and expenses
for in-house or staff legal counsel or outside counsel at rates not to exceed
the reasonable and customary charges for any such services as would be imposed
in an arms length third party agreement for such services.

36.12. Upon request of Landlord, Tenant
shall furnish to Landlord a copy of its then current audited financial
statement (which may be in the form of Tenant’s most recent annual report)
which shall be employed by Landlord for purposes of financing the Premises and
not distributed otherwise without prior authorization of Tenant. Landlord shall
be entitled (upon request) to one (1) free copy of Tenant’s then current
audited financial statement in each and every Calendar Year of the Term; in the
event Landlord requests Tenant’s audited financial statement more than once in
any Calendar Year of the Term, Tenant shall be entitled to an administrative
fee of $150 for the second and each successive request in any Calendar Year.
Tenant represents that its most recent annual report is, under normal
circumstances, available for review on Tenant’s website.

36.13. (i) At least ninety (90) days
prior to Tenant’s termination of its lease, and any extensions thereof, Tenant
agrees to seek a determination from the New Jersey Department of Environmental
Protection (“NJDEP”) in the form of a Letter of Non-applicability (“LNA”), that
the  New Jersey Industrial Site Recovery
Act, N.J.S.A. 13:1K-6 et seq. (“ISRA”), is inapplicable to the Tenant’s
cessation of operations and termination of its lease. Tenant represents,
warrants, and covenants that any information contained in any application for
an LNA submitted pursuant to this subsection will be true and complete. Tenant
represents that the North American Industrial Classification System (NAICS)
number applicable to Tenant’s operations would not subject this transaction to
the requirements of ISRA.

(ii) In the event
that an LNA is denied by NJDEP, notice of such denial will be given to Landlord
within two (2) business days of Tenant’s receipt of NJDEP’s denial of the
LNA. Tenant shall satisfy its obligations under ISRA prior to its lease
termination date: (1) by securing an approval of the Tenant’s Negative
Declaration; or (2) by securing an approval of the Tenant’s Remedial
Action Workplan, and completing the implementation of such Plan, and obtaining
from NJDEP a “No Further Action” letter. Tenant shall bear sole responsibility
for any investigation and cleanup costs, fees, penalties, or damages associated
with ISRA compliance. In the event that Tenant is unable to complete the its
ISRA compliance obligations by the date of its lease termination, Landlord
shall continue to provide Tenant with reasonable access to the Demised
Premises, provided that any work undertaken by Tenant shall be performed in
such a manner as to minimize interference with Landlord’s or any other tenant’s
use of the Demised Premises. However, Landlord reserves its rights to deem
Tenant a holdover tenant in the event that Tenant’s ISRA compliance
unreasonably restricts the Landlord’s use of the Demised Premises.

 43
 

 

(iii) Tenant shall
provide Landlord with copies of all correspondence, documents and reports, including
sampling results submitted to or received from any governmental agency or third
party in connection with Tenant’s compliance with ISRA.

36.14.      (a) Certification. Tenant certifies
that:  (i) It is not acting,
directly or indirectly, for or on behalf of any person, group, entity, or
nation named by any Executive Order or the United States Treasury Department as
a terrorist, “Specially Designated National and Blocked Person,” or other
banned or blocked person, entity, nation, or transaction pursuant to any law,
order, rule, or regulation that is enforced or administered by the Office of
Foreign Assets Control; and (ii)  It is not engaged in this traction,
directly or indirectly on behalf of, or instigating or facilitating this
transaction, directly or indirectly on behalf of, any such person, group,
entity, or nation.

(b) Indemnification.
Tenant hereby agrees to defend, indemnify, and hold

harmless Landlord
from and against any and all claims, damages, losses, risks, liabilities, and
expenses (including attorney’s fees and costs) arising from or related to any
breach of the foregoing certification.

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

	
   

  	
   

  	
   

  	
   

  	
  HARTZ MOUNTAIN METROPOLITAN

  
	
   

  	
   

  	
   

  	
   

  	
  (“Landlord”)

  
	
   

  	
   

  	
  BY:

  	
   

  	
  HARTZ MOUNTAIN INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
  (“general
  partner”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
   

  	
  /S/ IRWIN A. HOROWTIZ

  
	
  [Corporate Seal]

  	
   

  	
   

  	
   

  	
  Irwin A. Horowitz

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  THE CHILDREN’S
  PLACE SERVICES COMPANY, LLC

  
	
   

  	
   

  	
   

  	
   

  	
  (“Tenant”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
   

  	
  /S/ NEAL GOLDBERG

  
	
   

  	
   

  	
   

  	
   

  	
  Neal Goldberg

  
	
   

  	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BY:

  	
   

  	
  /S/ STEVEN BALASIANO

  
	
  [Corporate Seal]

  	
   

  	
   

  	
   

  	
  Steven Balasiano

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice
  President-General Counsel

  

Copyright © Hartz Mountain
Industries, Inc. 2005. All Rights Reserved. No portion of this document
may be reproduced without the express written consent of Hartz Mountain
Industries, Inc.

 44
 

 

RIDER TO LEASE DATED May 3,
2006, BETWEEN HARTZ MOUNTAIN METROPOLITAN, AS LANDLORD AND THE CHILDREN’S PLACE
SERVICE COMPANY, LLC, AS TENANT.

 

R1.          If
any of the provisions of this Rider shall conflict with any of the provisions,
printed or typewritten, of this Lease, such conflict shall resolve in every
instance in favor of the provisions of this Rider.

R2.          Provided
Tenant is in compliance with all of the terms and conditions contained herein,
and provided Tenant has not assigned this Lease or sublet all or any portion of
the Demised Premises and is itself in occupation and conducting business in the
whole of the Demised Premises in accordance with the terms of this Lease,
Tenant expressly acknowledging and agreeing that the option rights contained
herein are personal to the original named Tenant, Tenant shall have two (2) options
to extend the Term of its lease of the Demised Premises, from the date upon
which this Lease would otherwise expire, for one period of ten (10) years
and a second period of five (5) years [each herein referred to as an “Extended
Period”, the first (being a ten (10) year period) of which referred to as
the “First Extended Period” and the second (being a five (5) year period)
referred to as the “Second Extended Period” respectively], upon the following
terms and conditions:

1.             If Tenant elects to exercise any
one or both of said options, it shall do so by giving notice of such election
to Landlord on or before the date which is one (1) year before the
beginning of the Extended Period for which the Term is to be extended by the
exercise of such option. Tenant agrees that it shall have forever waived its
right to exercise any such option if it shall fail for any reason whatsoever to
give such notice to Landlord by the time provided herein for the giving of such
notice, whether such failure is inadvertent or intentional, time being of the
essence as to the exercise of each such option.

2.             If Tenant elects to exercise any
one or both of said options, the Term shall be automatically extended for the
Extended Period covered by the option so exercised without execution of an
extension or renewal lease. Within ten (10) days after request of either
party following the effective exercise of any such option, however, Landlord
and Tenant shall execute, acknowledge and deliver to each other duplicate
originals of an instrument in recordable form confirming that such option was
effectively exercised.

3.             Each Extended Period shall be upon
the same terms and conditions as are in effect immediately preceding the
commencement of such Extended Period; provided, however, that Tenant shall have
no right or option to extend the Term for any period of time beyond the
expiration of the Second Extended Period and, provided further, that in the
Extended Period(s) the Fixed Rent shall be as follows:

(a) The
Fixed Rent during the first five (5) years of First Extended Period shall
be at Fair Market Value (“FMV”) but not less than Seven and 38/100 Dollars
($7.38) per square foot of Floor Space of the Demised Premises.

 45
 

 

(b) The
Fixed Rent during the second five (5) years of the First Extended Period
shall be at the then FMV but not less than the Fixed Rent (on a per square foot
basis) paid by Tenant during the first five (5) years of the First
Extended Period.

(c) The
Fixed Rent during the Second Extended Period shall be at the then FMV but not
less than the Fixed Rent paid by Tenant (on a per square foot basis) during the
second (5) years of the First Extended Period.

(d) 
FMV shall be determined by mutual agreement of the parties. If the parties are
unable to agree on the FMV within thirty (30) days of Tenant’s exercise of its
option, the parties shall choose a licensed Real Estate Appraiser who shall
determine the FMV. The cost of said Real Estate Appraiser shall be borne
equally by the parties. If the parties are unable to agree on a licensed Real
Estate Appraiser within forty-five (45) days of Tenant’s exercise of its
option, each party shall select one Appraiser to appraise the FMV. All
appraisals shall be rendered within thirty (30) days of appointment of the
respective Appraiser appointed under this paragraph. If the difference between
the two appraisals is 20% or less of the lower appraisal, then the FMV shall be
the average of the two appraisals. If the difference between the two appraisals
is greater than 20% of the lower appraisal, the two Appraisers shall select a
third licensed Real Estate Appraiser to appraise the FMV. The FMV shall in such
case be the average of the three appraisals. The cost of the third appraisal
shall be borne equally by the parties.

(e) For
purposes of this Article R2. (3), the parties agree that FMV shall be determined
as the highest and best use for the Building, consistent with the Hudson County
New Jersey Market within which it is situate, without consideration of (i) the
leasehold improvements installed in the Demised Premises by Tenant, or (ii) the
existence of the parking structure to be constructed pursuant to Exhibit C
to the Lease.

4.             Any
termination, expiration, cancellation or surrender of this Lease shall
terminate any right or option for the Extended Period(s) not yet
exercised.

5.             Landlord
shall have the right, for thirty (30) days after receipt of notice of Tenant’s
election to exercise any option to extend the Term, to reject Tenant’s election
if Tenant gave such notice while Tenant was in default beyond the applicable
notice and cure period in the performance of any of its obligations under the
Lease, and such rejection shall automatically render Tenant’s election to
exercise such option null and void and of no effect.

6.             The
options provided herein to extend the Term of the Lease may not be severed from
the Lease or separately sold, assigned or otherwise transferred.

R3. (a) It
is the agreement of the parties pursuant to this Lease that The Children’s
Place Services Company, LLC (“CP”) will lease premises at 2 Emerson Lane,
Secaucus, New Jersey from Hartz Mountain Metropolitan (the “ 2 Emerson Lane
Lease” and the “2 Emerson Lane Premises”). In conjunction with the 2 Emerson
Lane Lease, CP will vacate and surrender two (2) 

 46
 

 

premises it
currently leases from an affiliate of Hartz Mountain Metropolitan, to wit,
Hartz Mountain Associates, located at both 900 Secaucus Road, Secaucus, New
Jersey (the “900 Secaucus Road Lease” and the “900 Secaucus Road Premises”) and
915 Secaucus Road, Secaucus, New Jersey (the “915 Secaucus Road Lease” and the “915
Secaucus Road Premises”). The 2 Emerson Lane Lease shall commence on the
Commencement Date of this Lease (as that term is defined in Article 1.01H
above). The 900 Secaucus Road Lease and the 915 Secaucus Road Leases will
terminate (subject to and conditioned upon the terms and conditions of two (2) separate
Lease Termination Agreements with respect to each of the aforesaid premises
which Lease Termination Agreement are being executed contemporaneously with
this Lease) upon the later to occur of (i) the Commencement Date of this
Lease (i.e. March 1, 2007), or (ii) the date CP vacates and
surrenders the 900 Secaucus Road Premises and/or the 915 Secaucus Road
Premises, respectively (the parties acknowledging there may be different dates
of termination), by notice to Landlord to such effect. For purposes of this Article R2.,
Hartz Mountain Metropolitan and Hartz Mountain Associates shall sometimes
hereinafter be collectively referred to as the “Hartz Landlords.”

(b) In
connection with the above, the Hartz Landlords and CP have agreed to cooperate
in the marketing of both the 900 Secaucus Road Premises and the 915 Secaucus
Road Premises with an eye towards the Hartz Landlords’ re-letting each of those
Buildings. Up through and including the time period ending on August 31,
2006, each party agrees to present all offers for a potential re-letting of
either of the Buildings to the other, provided however (i) Landlord shall
have final and absolute discretion on whether to accept any such offer, and (ii) up
through and including August 31, 2006, Tenant shall have the right to
reject any offer of re-letting regardless as to whether or not Landlord would
otherwise accept such offer. Thereafter, all decisions with respect to the
re-letting of the Buildings shall be in the sole and exclusive discretion of
Landlord and Landlord shall have no obligation to share any such offers with
Tenant. Each party agrees to act reasonably and in good faith in connection
with the exercise of its rights hereunder. Tenant acknowledges that this lease is
subject to the SNDA Contingency referenced in Article 9.2 of this Lease,
and the Site Plan Contingency referenced in Exhibit C to this Lease. Tenant
acknowledges and agrees that The Hartz Landlords shall be under no obligation
to execute any lease for the 900 Secaucus Road Premises or the 915 Secaucus
Road Premises until such time as the aforesaid contingencies have been
satisfied or waived, or in the event the particular contingency has expired as
a result of Tenant’s failure to exercise any rights to terminate this Lease in
a timely manner.

(c) In
the event either (or both) the 900 Secaucus Road Premises or the 915 Secaucus
Road Premises are re-let during the period from the termination of each of the
respective leases through January 31, 2012 (the period from the
termination of the leases through January 31, 2012 sometimes hereinafter
referred to as the “Rent Credit Period”), Landlord agrees that Tenant may be
entitled to a credit as against its Fixed Rent obligation (the “Fixed Rent
Credit”) hereunder as follows:

(i)                                                                                     As
of December 31, 2007, Landlord will calculate whether the “net” Fixed Rent
(as that term is defined below) collected by Landlord relative to either (or
both) the 900 Secaucus Road Premises and the 915 Secaucus Road Premises from
the date of termination of either or both of those leases through December 31,
2007 exceeds One Million One Hundred Fifty One Thousand Two Hundred and Sixty
Six Dollars ($1,151,266.00)[calculated as 

 47
 

 

the product of the
combined square footages of the 900 Secaucus Road Premises and the 915 Secaucus
Road Premises (in total, 276,304 square feet) and Five Dollars ($5.00) per
square foot and assuming a Commencement Date of March 1, 2007 (i.e., 10
months)]. The net Fixed Rent collected from the leasing of the 900 Secaucus
Road Premises and/or the 915 Secaucus Road Premises from the termination of
either or both of said Leases through December 31, 2007 in excess of
$1,151,266.00 shall be referred to as the “Year One Excess Rent.” Tenant shall
be entitled to a credit as against the Fixed Rent to be paid by Tenant under
this Lease in Calendar Year 2008 equal to the Year One Excess Rent, same to be
amortized and applied on a monthly basis as against the monthly Fixed Rent
payable by Tenant in 2008.

(ii)                                                                                  As
of December 31, 2008, Landlord will calculate whether the “net” Fixed Rent
collected by Landlord relative to either (or both) the 900 Secaucus Road
Premises and the 915 Secaucus Road Premises from the date termination of either
or both of those leases through December 31, 2008 exceeds Two Million Five
Hundred Thirty Two Thousand Seven Hundred and Eighty Six Dollars
($2,532,786.00)[calculated as the product of the combined square footages of
the 900 Secaucus Road Premises and the 915 Secaucus Road Premises and Five
Dollars ($5.00) per square foot and assuming a Commencement Date of March 1,
2007 (i.e., 22 months)]. The net Fixed Rent collected from the leasing of the
900 Secaucus Road and/or the 915 Secaucus Road Premises from the termination of
either or both of said Leases through December 31, 2008 in excess of
$2,532,786.00 shall be referred to as the “Year Two Excess Rent.” Tenant shall
be entitled to a credit as against the Fixed Rent to be paid by Tenant in
Calendar Year 2009 equal to the Year Two Excess Rent less any Year One Excess
Rent previously credited, same to be amortized and applied on a monthly basis
as against the monthly Fixed Rent payable by Tenant in 2009. In the event the
Fixed Rent collected by Landlord relative to the 900 Secaucus Road Premises
and/or the 915 Secaucus Road Premises as of December 31, 2008 is less than
$2,532,786.00, Tenant shall pay Landlord, within twenty (20) days of Landlord’s
invoice therefore, an amount which represents the shortfall (i.e. difference)
between the net Fixed Rent collected by Landlord from 900 Secaucus Road and 915
Secaucus Road from the termination of either or both those Leases through December 31,
2008 and $2,532,786.00, up to a maximum amount of the Year One Excess Rent (the
“Shortfall Payment”).

(iii)                                                                               As
of December 31, 2009, Landlord will calculate whether the “net” Fixed Rent
collected by Landlord relative to either (or both) the 900 Secaucus Road
Premises and the 915 Secaucus Road Premises from the termination date of either
or both of those leases through December 31, 2009 exceeds Three Million
Nine Hundred Fourteen Thousand Three Hundred and Six Dollars
($3,914,306.00)[calculated as the product of the combined square footages of
the 900 Secaucus Road Premises and the 915 Secaucus Road Premises and Five
Dollars ($5.00) per square foot and assuming a Commencement Date of March 1,
2007 (i.e., 34 months)]. The net Fixed Rent collected from the leasing of the
900 Secaucus Road Premises and/or 915 Secaucus Road 

 48
 

 

Premises from the
termination of either or both of said Leases through December 31, 2009 in
excess of $3,914,306.00 shall be referred to as the “Year Three Excess Rent.”
Tenant shall be entitled to a credit as against the Fixed Rent to be paid by
Tenant under this Lease in Calendar Year 2010 equal to the Year Three Excess
Rent less any Year One Excess Rent and Year Two Excess Rent previously
credited, same to be amortized and applied on a monthly basis as against the
monthly Fixed Rent payable by Tenant in 2010. In the event the Fixed Rent
collected by Landlord relative to the 900 Secaucus Road Premises and/or the 915
Secaucus Road Premises as of December 31, 2009 is less than $3,914,306.00,
Tenant shall pay Landlord, within twenty (20) days of Landlord’s invoice
therefore,  an amount which is equal to
the shortfall (i.e. difference) between the net Fixed Rent collected by
Landlord from the 900 Secaucus Road Premises and the 915 Secaucus Road Premises
from the termination of either or both those Leases through December 31,
2009 and $3,914,306.00, up to a maximum amount equal to the sum of the Year One
Excess Rent and the Year Two Excess Rent, but less any Shortfall Payment
previously made pursuant to subparagraph (ii) above.

(iv)                                                                              As
of December 31, 2010, Landlord will calculate whether the “net” Fixed Rent
collected by Landlord relative to either (or both) the 900 Secaucus Road
Premises and the 915 Secaucus Road Premises from the termination date of either
or both of those leases through December 31, 2010 exceeds Five Million Two
Hundred Ninety Five Thousand Eight Hundred and Twenty Six Dollars
($5,295,826.00)[calculated as the product of the combined square footages of
the 900 Secaucus Road Premises and the 915 Secaucus Road Premises and Five
Dollars ($5.00) per square foot and assuming a Commencement Date of March 1,
2007(i.e., 46 months)]. The net Fixed Rent collected from the leasing of the
900 Secaucus Road Premises and/or 915 Secaucus Road Premises from the
termination of either or both of said Leases through December 31, 2010 in
excess of $5,295,826.00 shall be referred to as the “Year Four Excess Rent.”
Tenant shall be entitled to a credit as against the Fixed Rent to be paid by
Tenant under this Lease in Calendar Year 2011 equal to the Year Four Excess
Rent less any Year One Excess Rent and Year Two Excess Rent and Year Three
Excess Rent previously credited, same to be amortized and applied on a monthly
basis as against the monthly Fixed Rent payable by Tenant in 2011. In the event
the Fixed Rent collected by Landlord relative to the 900 Secaucus Road Premises
and/or the 915 Secaucus Road Premises as of December 31, 2010 is less than
$5,295,826.00, Tenant shall pay Landlord, within twenty days of Landlord’s
invoice therefore, an amount equal to the shortfall between the net Fixed Rent
collected by Landlord from the 900 Secaucus Road Premises and the 915 Secaucus
Road Premises from the 

 

 49

 

termination of either or
both those Leases through December 31, 2010 and $5,295,826, up to a
maximum amount equal to the sum of the Year One Excess Rent and the Year Two
Excess Rent and the Year Three Excess Rent, but less any Shortfall Payment previously
made pursuant to subparagraphs (ii) and (iii) above.

(v)                                                                                 As
of December 31, 2011, Landlord will calculate whether the “net” Fixed Rent
collected by Landlord relative to either (or both) the 900 Secaucus Road
Premises and the 915 Secaucus Road Premises from the termination date of either
or both of those leases through December 31, 2011 exceeds Six Million Six
Hundred Seventy Seven Thousand Three Hundred and Forty Six Dollars
($6,677,346.00)[calculated as the product of the combined square footages of
the 900 Secaucus Road Building and the 915 Secaucus Road Building and Five
Dollars ($5.00) per square foot and assuming a Commencement Date of March 1,
2007(i.e., 58 months)]. The net Fixed Rent collected from the leasing of the
900 Secaucus Road Premises and/or the 915 Secaucus Road Premises from the
termination of either or both of said Leases through December 31, 2011 in
excess of 6,677,346.00 shall be referred to as the “Year Five Excess Rent.”
Tenant shall be entitled to a credit as against the Fixed Rent to be paid by
Tenant under this Lease in Calendar Year 2012 equal to the Year Five Excess
Rent less any Year One Excess Rent and Year Two Excess Rent and Year Three
Excess Rent and Year Four Excess Rent previously credited, same to be amortized
and applied on a monthly basis as against the monthly Fixed Rent payable by
Tenant in 2012. In the event the Fixed Rent collected by Landlord relative to
the 900 Secaucus Road Premises and/or the 915 Secaucus Road Premises as of December 31,
2011 is less than $6,677,346.00, Tenant shall pay Landlord, within twenty days
of Landlord’s invoice therefore, an amount equal to the shortfall between the
net Fixed Rent collected by Landlord from the 900 Secaucus Road Premises and
the 915 Secaucus Road Premises from the termination of either or both those
Leases through December 31, 2011 and $6,677,346, up to a maximum amount of
equal to the sum of the Year One Excess Rent and the Year Two Excess Rent and
the Year Three Excess Rent and the Year Four Excess Rent less any Shortfall Payment
previously make pursuant to subparagraphs (ii), (iii) and (iv) above.

(vi)                                                                              As
of January 31, 2012, Landlord will calculate whether the “net” Fixed Rent
collected by Landlord relative to either (or both) the 900 Secaucus Road
Premises and the 915 Secaucus Road Premises from the termination of either or
both of those leases through January 31, 2012 exceeds Six Million Seven
Hundred Ninety Two Thousand Four Hundred and Seventy Three Dollars
($6,792,473.00)[calculated as the product of the combined square footages of
the 900 Secaucus Road Premises and the 915 Secaucus Road Premises and Five
Dollars ($5.00) per square foot and assuming a Commencement Date of March 1,
2007 (i.e., 59 months)]. The net Fixed Rent collected from the leasing of the
900 Secaucus Road Premises and/or 

 50
 

 

 

the 915 Secaucus Road
Premises from the termination of either or both of said Leases through December 31,
2012 in excess of $6,792,473.00 shall be referred to as the “Year Six Excess
Rent.” Tenant shall be entitled to a credit as against the Fixed Rent to be
paid by Tenant under this Lease in year 2013 equal to the Year Six Excess Rent
less any Year One Excess Rent and Year Two Excess Rent and Year Three Excess
Rent and Year Four Excess Rent and Year Five Excess Rent previously credited,
same to be amortized and applied on a monthly basis as against the monthly
Fixed Rent payable by Tenant in 2013. In the event the Fixed Rent collected by
Landlord relative to the 900 Secaucus Road Premises and/or the 915 Secaucus
Road Premises as of January 31, 2012 is less than $6,792,473.00, Tenant
shall pay Landlord, within twenty days of Landlord’s invoice therefore, an
amount equal to the shortfall between the net Fixed Rent collected by Landlord
from 900 Secaucus Road Premises and 915 Secaucus Road Premises from the
termination of either or both those Leases through January 31, 2012 and
$6,792,473.00, up to a maximum amount of the sum of the Year One Excess Rent
and the Year Two Excess Rent and the Year Three Excess Rent and the Year Four
Excess Rent and the Year Five Excess Rent less any Shortfall Payment previously
made pursuant to subparagraph (ii), (iii), (iv) and (v) above.

The “net”
Fixed Rent as that term is utilized in this Article R.3 shall mean the net
Fixed Rent received by Hartz Mountain Associates after deduction for all costs
incurred by Hartz Mountain Associates in connection with such re-letting,
including, but not limited to, reasonable legal fees and expenses, cost of work
to be performed or work allowance provided, and the value of any “free” rent
period (but not including brokerage fees). The amortization of such costs will
be calculated on a monthly basis over the Term of the Lease (not including any
options) at an annual interest rate of seven percent (7%). It is expressly agreed
that the Fixed Rent Credit shall only apply with respect to Excess Rents
received during the Rent Credit Period. Further, and notwithstanding anything
herein contained to the contrary, it is expressly agreed and understood by the
parties hereto that in no event shall the Fixed Rent Credit be such that the
Fixed Rent to be paid by Tenant under this Lease is less than the Fixed Rent(s) per
square foot of Floor Space of the Demised Premises set forth on the Schedule of
Fixed Rent “Floor Amount” detailed on Exhibit G annexed hereto (for
example, in the first year of the Term, the Rent Credit may not reduce the
Fixed Rent to be paid by Tenant below $5.00 per square foot of Floor Space. In
year two (2), the “Floor” will be $5.15 per square foot of Floor Space; in year
three (3), the “Floor” will be $5.30 per square foot of Floor Space; in year
four (4), the “Floor” will be $5.46 per square foot of Floor Space and in year
five (5), the “Floor” will be $5.63 per square foot of Floor Space.

R4.          Intentionally
Omitted.

R5. Provided (i) Tenant
is not then in default of this Lease, and (ii) Tenant has not assigned
this Lease (to other than a Permitted Assignee) or sublet the Demised Premises,
Tenant acknowledging and agreeing that the rights contained herein are personal
to the named Tenant (and any Permitted Assignee) (for purposes of this Article R3,
the term “Tenant” is intended to include any “Permitted Assignee”), Landlord
agrees that during the Term, prior to entering into any new 

 51
 

 

lease with a prospective tenant
for the remaining 37,299 square feet of Floor Space in the Building (herein the
“RFO Space”), Landlord shall first notify Tenant in writing of the availability
of such space and the terms upon which it is prepared to lease such space (“Landlord’s
RFO Notice”). It is agreed between the parties hereto that the Term of the RFO
Space shall run coterminously with the term of the Lease for the Demised
Premises and that the Fixed Rent for the RFO Space shall be at the rate which
is the greater of (i) FMV (as that term is defined in Article R2
above) (with annual escalations comparable to those set forth in Exhibit F
to this Lease), or (ii) the then Fixed Rent being paid by Tenant under
this Lease (as same is annually escalated as set forth in Exhibit F to
this Lease). Tenant will have ten (10) business days from receipt of
Landlord’s RFO Notice to exercise its right to lease such space on the terms
set forth in Landlord’s RFO Notice. To the extent that Tenant rejects Landlord’s
offer and the offered RFO Space is not leased within six (6) months, or to
the extent that any business terms of the RFO Space, as stated in Landlord’s
RFO Notice, are materially modified, the RFO Space shall be required to be
re-offered to Tenant. If Tenant shall notify Landlord in writing of its
election to enter into such lease as tenant for the RFO Space within the said
ten (10) business day period, Landlord shall deliver and Tenant shall
execute a modification of this Lease incorporating the RFO Space which was the
subject of Landlord’s RFO Notice into the Demised Premises. Time is of the
essence with respect to Tenant’s exercise of its right of first offer
hereunder.

(b)  If Tenant shall not elect to lease the RFO Premises referred to in
Landlord’s Notice within the ten (10) business day period following
Landlord’s RFO Notice then, Landlord may thereafter enter into and deliver a
lease for such RFO Space free of the restrictions herein stated, without again
being required to offer the same to Tenant.

(c)  This right of first offer so granted to Tenant shall terminate and
become null and void upon the expiration or sooner termination of this Lease.

	
   

  	
   

  	
   

  	
   

  	
  HARTZ MOUNTAIN METROPOLITAN

  
	
   

  	
   

  	
   

  	
   

  	
  (“Landlord”)

  
	
   

  	
   

  	
  By:

  	
   

  	
  HARTZ MOUNTAIN INDUSTRIES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
  (“general
  partner”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /S/ IRWIN A. HOROWTIZ

  
	
   

  	
   

  	
   

  	
   

  	
  Irwin A.
  Horowitz

  
	
   

  	
   

  	
   

  	
   

  	
  Executive Vice
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  THE CHILDREN’S
  PLACE SERVICES COMPANY, LLC (“Tenant”)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /S/ NEAL GOLDBERG

  
	
   

  	
   

  	
   

  	
   

  	
  Neal Goldberg

  
	
   

  	
   

  	
   

  	
   

  	
  President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /S/ STEVEN BALASIANO

  
	
   

  	
   

  	
   

  	
   

  	
  Steven Balasiano

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice
  President-General Counsel

  

Copyright © Hartz Mountain
Industries, Inc. 2005. All Rights Reserved. No portion of this document
may be reproduced without the express written consent of Hartz Mountain
Industries, Inc.

 52
 

 

Exhibit C 

Workletter

I.

A.             Landlord has provided to Tenant
schematic architectural drawings (the “Preliminary Architectural Drawings”)
depicting a parking garage (the “Parking Garage”) to be constructed by
Landlord, or Tenant, as the case may be, consistent with the provisions of this
Exhibit C. The Preliminary Architectural Drawings have been submitted to
Tenant in order that Tenant might evaluate the cost to construct the Parking
Garage; it is expressly agreed and understood that the Preliminary
Architectural Drawings shall at all times remain the property of Landlord and
that should Tenant elect to construct the Parking Garage in accordance with the
provisions of this Exhibit C, then Tenant shall be required to engage
licensed professionals to prepare all necessary architectural and engineering
drawings and specifications (which drawings and specifications shall be subject
to Landlord’s prior review and approval) for the construction of the Parking
Garage.

B.            Within fourteen (14) days of date of
full execution and delivery of this Lease (the date of full execution and
delivery of this Lease shall hereinafter be referred to as the “Execution Date”),
time being of the essence, Tenant shall advise Landlord if Tenant requests any
changes to the proposed façade of the Parking Garage as depicted in the
Preliminary Architectural Drawings.

C.            On or prior to the date which is six
(6) weeks from the Execution Date, Landlord will deliver to Tenant a
budget setting forth Landlord’s estimated cost to design, engineer and construct
the Parking Garage (inclusive of a 2.5 % profit, overhead and administrative
charge) as well as an estimate of the cost to be incurred by Landlord to obtain
all permits and approvals necessary to construct the Parking Garage (“Landlord’s
Budget). (The date that Landlord delivers Landlord’s Budget to Tenant shall be
hereinafter be referred to as the “Landlord’s Budget Delivery Date”). It is
expressly agreed and understood by the parties hereto that the Landlord’s
Budget represents a good faith estimate of the cost to design, engineer and
construct the Parking Garage (as well as the cost of all permits and approvals
necessary to construct the Parking Garage); it is not intended to nor should
Landlord’s Budget be construed to represent the actual cost of the design,
engineering and construction of the Parking Garage (as well as the cost of all
permits and approvals necessary to construct the Parking Garage).

D.            On or prior to the date which is the
later of (a) seven (7) days from Landlord’s Budget Delivery Date or (b) seven
(7) weeks from the Execution Date, Tenant shall be obligated to advise
Landlord, by notice to that effect, whether (i) Tenant desires that
Landlord construct the Parking Garage in accordance with the terms and
conditions of this Exhibit C, or (ii) Tenant shall construct the
Parking Garage in accordance with the terms and conditions of this Exhibit C.
Time shall be of the essence in connection with Tenant’s delivery of notice in
accordance with this paragraph; Tenant’s failure to so notify Landlord within
the seven (7) day period referenced herein shall be deemed to be an
election, by Tenant, that Landlord construct the Parking Garage.

E.             Regardless of the party that
constructs the Parking Garage, the following provisions shall apply:

 53
 

 

(i)                                     The
Parking Garage will be engineered and constructed consistent with the
Preliminary Architectural Drawings. It is intended that the Parking Garage will
be a pre-cast concrete structure and accommodate approximately 500 cars;

(ii)                                  The
Parking Garage will be constructed in the location depicted on the attached Exhibit C-1;

(iii)                               The
Parking Garage will be constructed using new materials (which materials will
not contain asbestos or other materials/substances that are considered
hazardous or toxic by applicable Legal Requirements) and in accordance with all
applicable Legal Requirements.

F.             In the event Landlord constructs
the Parking Garage, the following shall apply:

(i)                                     Landlord
shall warrant the construction of the Parking Garage for a period of one (1) year
from its completion. In the event it is determined that there is a construction
defect related to the Landlord’s construction of Parking Garage during said one
(1) year warranty period, and such construction defect is not the result
of the act, omission, or negligence of Tenant, its agents, representatives,
employees, or contractors, then, Landlord shall repair such defect at Landlord’s
sole cost and expense. In the event such defect is determined to be the result
of the act, omission or negligence of Tenant, or its agents, representatives,
employees or contractors, Tenant shall repair such defect at Tenant’s sole cost
and expense.

(ii)                                  Landlord
shall provide Tenant with a construction schedule (the “Construction Schedule”)
(a copy of which is annexed hereto as Exhibit C-2) for the
construction of the Parking Garage. During the construction of the Parking
Garage, Landlord shall advise Tenant if the overall progress of the
construction deviates significantly from the Construction Schedule, and in such
event, Landlord shall provide Tenant with updated construction schedules, as
necessary, to reflect any such change.

(iii)                               Tenant
shall pay Landlord, as an Additional Charge hereunder, all of Landlord’s hard
and soft costs to design, engineer and construct the Parking Garage (including,
but not limited to, the cost and expense incurred by Landlord to obtain all
approvals necessary to construct the Parking Garage; collectively, all said
costs shall sometimes hereinafter be referred to as the “Landlord’s Parking Garage
Costs”). Landlord shall submit invoices to Tenant for partial payments (and,
ultimately, final payment) as against the Landlord’s Parking Garage Costs based
upon Landlord’s completion of various milestone progress events set forth on
Landlord’s Construction Payment Schedule, a copy of which is annexed hereto as Exhibit C-3.
Those milestone progress events are: 
Notice to Proceed, Completion of Foundations, Completion of
Superstructures, and Completion of Construction. (For example, upon delivery of
Notice to Proceed, Tenant shall be invoiced for and shall pay Landlord 15% of
Landlord’s Parking Garage Costs; payment shall continue consistent with Exhibit C-3).
Tenant shall pay any such invoice within twenty (20) 

 54
 

 

days of receipt thereof. Tenant’s failure to make
payment of any amounts due under this Exhibit C shall be deemed a default
of this Lease. In addition to any rights and remedies to which Landlord shall
be entitled under this Lease, Tenant expressly agrees and acknowledges that
Landlord’s damages for Tenant’s breach of this provision shall include, but not
be limited to, at Landlord’s option, Landlord’s cost to either (i) complete
construction of the Parking Garage (inclusive of the 2.5% profit, overhead and
administrative charge), or (ii) remove the Parking Garage and restore the
area where the Parking Garage was being constructed to the condition that
existed prior to the commencement of the construction of the Parking Garage.

(iv)                              The
parties agree that any material changes to the design and/or scope of the
Parking Garage as is otherwise set forth in the Preliminary Architectural
Drawings (with concomitant change in price, if any) shall only be made by
Change Order or similar such written document executed by both Landlord and
Tenant.

(v)                                 Upon
execution and delivery of this Lease (or prior to such time if Landlord so
elects), Landlord shall proceed to obtain the requisite site plan approval (the
“Site Plan Approval”) for the construction of the Parking Garage. In the event
Landlord has not received Site Plan Approval by the date which is ninety (90)
days from the Execution Date, Tenant shall have the right, but not the
obligation, to terminate this Lease (“Tenant’s First Termination Option”) by
delivery of written notice to Landlord to that effect on or prior to the date
which is ninety five (95) days from the Execution Date, time being of the
essence; in such event, but subject to the following sentence, the rights and
obligation of the parties under this Lease shall be null and void and without further
force and effect. Notwithstanding anything contained in the previous sentence
to the contrary, and notwithstanding the Tenant’s exercise of Tenant’s First
Termination Option, Landlord shall have the right to void Tenant’s exercise of
Tenant’s First Termination Option if Landlord provides Tenant with
documentation on or prior to the date which is one hundred (100) days from the
Execution Date, to the effect that (i) Landlord is proceeding diligently
to obtain the Site Plan Approval, and (ii) Landlord expects to obtain Site
Plan Approval within one hundred twenty (120) days from the Execution Date. Should
Landlord not be able to obtain Site Plan Approval within one hundred twenty
(120) days from the Execution Date, Tenant shall once again have the right to
terminate this Lease (“Tenant’s Second Termination Option”) by notice to
Landlord to that effect within one hundred twenty five (125) days from the
Execution Date (with no further right of extension by Landlord), time being of
the essence in connection with Tenant’s exercise of its rights hereunder. This
provision shall sometimes hereinafter be referred to as the “Site Plan
Contingency.” In the event (i) Tenant exercises Tenant’s First Termination
Option and Landlord does not exercise its right to void the First Termination
Option, or (ii) if  Landlord
exercises its right to void Tenant’s First Termination Option, and Landlord
does not deliver Site Plan Approval to Tenant within one hundred twenty (120)
days of the Execution Date, such that Tenant exercises Tenant’s Second
Termination Option, (i.e. in either event, this Lease becomes null and void)
then the Lease Termination Agreements executed by and between Landlord’s
affiliate, Hartz Mountain Associates and Tenant with respect to 

 55
 

 

the 900 Secaucus Road Lease and the 915 Secaucus Road
Lease shall be deemed rescinded and rendered null and void, and the 900
Secaucus Road Lease and the 915 Road Lease shall be deemed in full force and
effect. The parties shall execute such documentation as is reasonably necessary
to memorialize the validity of the 900 Secaucus Road Lease and the 915 Secaucus
Road Lease upon request of either party. In the event Landlord delivers Site
Plan Approval to Tenant within ninety (90) days of the Execution Date (or 120
days from the Execution Date, as the case may be consistent with this
subparagraph v), the Site Plan Contingency shall be deemed satisfied.

G.            It is anticipated that the
construction of the Parking Garage shall be completed by March 1, 2007. If
the Parking Garage is not completed by March 1, 2007, and Landlord is
constructing the Parking Garage, Landlord agrees to provide Tenant with access
to parking spaces in the Harmon Cove Outlet Center parking lot across the
street from the Building until the Parking Garage has been completed. If the
Parking Garage is not completed by March 1, 2007, and Tenant is
constructing the Parking Garage, then, provided that Tenant is acting in a
diligent manner to construct and complete the Parking Garage, Landlord agrees
to provide Tenant with access to parking spaces in the Harmon Cove Outlet
Center parking lot across the street from the Building for the period up
through and including June 1, 2007, at which time Tenant shall no longer
have access to such spaces.

H.            In the event Tenant elects to
construct the Parking Garage, same shall be performed at Tenant’s sole cost and
expense. In such event, Landlord shall have no obligation to build the Parking
Garage and the Lease shall be deemed amended accordingly. The construction of
the Parking Garage by Tenant shall be deemed to be an element of Tenant’s Work
and as such, shall proceed in accordance with Article 5.01(b)(i)) of the
Lease, including, but not limited to, Tenant’s compliance with the requirement
that it submit plans and specifications for the Parking Garage to Landlord for
Landlord’s prior review and approval. On or prior to the commencement of
construction of the Parking Garage, Tenant shall provide Landlord with a budget
prepared by a licensed engineer and/or architect, which budget shall set forth
the Tenant’s cost to construct the Parking Garage, and at Landlord’s request,
Tenant shall provide Landlord with a Letter of Credit, or other such security
reasonably satisfactory to Landlord to cover the cost of building the Parking
Garage (the “Parking Garage Security”). In the event Tenant fails to complete
all or any portion of the Parking Garage, such conduct shall be deemed a
default of this Lease, and Landlord shall have recourse to the Parking Garage
Security (in addition to all other remedies provided by this Lease and by law)
in order that Landlord might, at its sole discretion, either a) complete the
construction of the Parking Garage, or b) to remove the Parking Garage and
restore the area where the Parking Garage was to be constructed to its original
condition. Upon satisfactory completion of the Parking Garage (or removal of
the Parking Garage and restoration of the area within which it was to be
constructed, as the case may be), Landlord shall return the remaining Parking
Garage Security, if any, to Tenant. In the event Tenant elects to construct the
Parking Garage, Tenant shall also be responsible to pay Landlord for all hard
and soft costs incurred by Landlord in connection with the preliminary design
and engineering of the Parking Garage [including, but not limited to, the costs
necessary to create the Preliminary Architectural Drawings and the Landlord’s
Budget (which shall include, but not be limited to, the cost to conduct soil
boring tests required to create Landlord’s Budget)], as well as all reasonable
costs incurred by Landlord to obtain the permits and approvals, 

 56
 

 

including but not
limited to, site plan approval, necessary to construct the Parking Garage.
Landlord shall submit an invoice for such costs and expenses, accompanied by
reasonable back-up documentation, after receiving notice that Tenant intends to
build the Parking Garage, and Tenant shall be obligated to pay such charges
within twenty (20) days of receipt of such invoice.

II.

Landlord
shall provide Tenant with an allowance (the “Workletter Allowance”) in the
amount of Eighty Thousand Dollars ($80,000) as against Tenant’s cost to ready
the Demised Premises for its occupancy. Landlord shall pay Tenant the
Workletter Allowance, in whole or in part, upon receipt of invoices from Tenant
depicting work performed by Tenant in and to the Demised Premises (with
reasonable back up documentation in support of such expenditures) as well as
lien waivers from Tenant’s general contractor as well any subcontractor(s) supplying
goods or services in excess of $5000 forming part of the subject invoice.

 

 57

 

Exhibit D
- Rules and Regulations

MULTI-WAREHOUSE

RULES AND REGULATIONS

1.             The
rights of each tenant in the entrances, corridors, elevators and escalators
servicing the Building are limited to ingress and egress from such tenant’s
premises for the tenant and its employees, licensees and invitees, and no
tenant shall use, or permit the use of, the entrances, corridors, escalators or
elevators for any other purpose. No tenant shall invite to the tenant’s
premises, or permit the visit of, persons in such numbers or under such con­ditions
as to interfere with the use and enjoyment of any of the plazas, entrances,
corridors, escalators, elevators and other facilities of the Building by any
other tenants. Fire exits and stairways are for emergency use only, and they
shall not be used for any other purpose by the tenants, their employees,
licensees or invitees. No tenant shall encumber or obstruct, or permit the
encumbrance or obstruction of, any of the sidewalks, plazas, entrances,
corridors, escalators, elevators, fire exits or stairways of the Building. Land­lord
reserves the right to control and operate the public portions of the Building
and the public facilities, as well as facilities furnished for the common use
of the tenants, in such manner as it deems best for the benefit of the tenants
generally.

2.             Landlord
may refuse admission to the Building outside of Business Hours on Business Days
to any person not known to the watchman in charge, or not having a pass issued
by Landlord or the tenant whose premises are to be entered, or not otherwise
properly identified, and Landlord may require all persons admitted to or leav­ing
the Building outside of Business Hours on Business Days to provide appropriate
identification. Tenant shall be responsible for all persons for whom it issues
any such pass and shall be liable to Landlord for all acts or omissions of such
persons. Any person whose presence in the Building at any time shall, in the
judgment of Landlord, be prejudicial to the safety, character or reputation of the
Building or of its tenants may be denied access to the Building or may be
ejected therefrom. During any invasion, riot, public excite­ment or other
commotion, Landlord may prevent all access to the Building by closing the doors
or otherwise for the safety of the tenants and protection of property in the
Building.

3.             No
tenant shall obtain or accept for use in its premises ice, drinking water,
food, beverage, towel, barbering, bootblacking, floor polishing, cleaning or
other similar services from any persons not authorized by Landlord in writing
to furnish such services, provided that the charges for such services by
persons authorized by Landlord are comparable to similar charges in other
comparable buildings in Hudson County. Such services shall be furnished only at
such hours, and under such reasonable regulations, as may be fixed by Landlord
from time to time.

4.             The
cost of repairing any damage to the public portions of the Building or the
public facilities or to any facilities used in common with other tenants,
caused by a tenant or its employees, licensees or invitees, shall be paid by
such tenant.

5.             No
awnings or other projections shall be attached to the outside walls of the
Building. No curtains, blinds, shades or screens shall be attached to or hung
in, or be used in connection with, any window or door of the premises of any
tenant, without the prior written consent of Landlord. Such curtains, blinds,
shades or screens must be of a quality, type, design and color, and attached in
the manner approved by Landlord.

6.             No
lettering, sign, advertisement, notice or object shall be displayed in or on
the windows or doors, or on the outside of any tenant’s premises, or at any
point inside any tenant’s premises where the same might be visible outside of
such premises, without the prior written consent of Landlord. In the event of
the 

 

violation
of the foregoing by any tenant, Landlord may remove the same without any
liability, and may charge the expense incurred in such removal to the tenant
violating this rule. Interior signs, elevator cab designations and lettering on
doors and the Building directory shall, if and when approved by Landlord, be
inscribed, painted or affixed for each tenant by Landlord at the expense of
such tenant, and shall be of a size, color and style acceptable to Landlord.

7.             The
sashes, sash doors, skylights, windows and doors that reflect or admit light
and air into the halls, passageways or other public places in the Building
shall not be covered or obstructed by any tenant, nor shall any bottles,
parcels or other articles be placed on the window sills or on the peripheral
air conditioning enclosures, if any.

8.             No
showcase or other articles shall be put in front of or affixed to any part of
the exterior of the Building, nor placed in the halls, corridors or vestibules.

9.             Linoleum,
tile or other floor covering shall be laid in a tenant’s premises only in a
manner first approved in writing by Landlord.

10.           No
tenant shall mark, paint, drill into, or in any way deface any part of its premises
or the Building. No boring, cutting or stringing of wires shall be permitted,
except with the prior written consent of Landlord, and as Landlord may direct.

11.           No
bicycles, vehicles, animals, fish or birds of any kind shall be brought into or
kept in or about the premises of any tenant of the Building.

12.           No
noise, including, but not limited to, music or the playing of musical
instruments, recordings, radio or television, which, in the judgment of
Landlord, might disturb other tenants in the Building, shall be made or
permitted by any tenant. Nothing shall be done or permitted in the premises of
any tenant which would impair or interfere with the use or enjoyment by any
other tenant of any other space in the Building.

13.           No
tenant, nor any tenant’s contractors, employees, agents, visitors or licensees,
shall at any time bring into or keep upon the premises or the Building any
inflammable, combustible, explosive or otherwise dangerous fluid, chemical or
substance.

14.           Additional
locks or bolts of any kind which shall not be operable by the grand master key
for the Building shall not be placed upon any of the doors or windows by any
tenant, nor shall any changes be made in locks or the mechanism thereof which
shall make such locks inoperable by said grand master key. Additional keys for
a tenant’s premises and toilet rooms shall be procured only from Landlord who
may make a reasonable charge therefor. Each tenant shall, upon the termination
of its tenancy, turn over to Landlord all keys of stores, offices and toilet
rooms, either furnished to, or otherwise procured by, such tenant, and in the
event of the loss of any keys furnished by Landlord such tenant shall pay to
Landlord the cost thereof.

15.           All
removals, or the carrying in or out of any safes, freight, furniture, packages,
boxes, crates or any other object or matter of any description must take place
during such hours and in such elevators and in such manner as Landlord or its
agent may determine from time to time. The persons employed to move safes and
other heavy objects shall be reasonably acceptable to Landlord and, if so
required by law, shall hold a master rigger’s license. Arrange­ments will be
made by Landlord with any tenant for moving large quantities of furniture and
equipment into or out of the Building. All labor and 

 

engineering
costs incurred by Landlord in connection with any moving specified in this
rule, shall be paid by Tenant to Land­lord, on demand.

16.           Landlord
reserves the right to inspect all objects and matter to be brought into the
Building and to exclude from the Build­ing all objects and matter which violate
any of these Rules and Regulations or this Lease. Landlord may require any
person leaving the Building with any package or other object or matter to
submit a pass, listing such package or object or matter, from the tenant from
whose premises the package or object or matter is being removed, but the
establishment and enlargement of such requirement shall not impose any
responsibility on Landlord for the protection of any tenant against the removal
of property from the premises of such tenant. Landlord shall in no way be
liable to any tenant for damages or loss arising from the admission, exclusion
or ejection of any person to or from the premises or the Building under the
provisions of this RULE or of RULE 2 hereof.

17.           No
tenant shall occupy or permit any portion of its premises to be occupied as an
office for a public stenographer or public typist, or for the possession,
storage, manufacture, or sale of liquor, narcotics, tobacco in any form, or as
a barber, beauty or manicure shop, or as a school. No tenant shall use its
premises or any part thereof to be used for manufacturing, or the sale at
retail or auction of merchandise, goods or property of any kind.

18.           Intentionally
omitted.

19.           Landlord
shall have the right to prescribe the weight and position of safes and other
objects of excessive weight, and no safe or other object whose weight exceeds
the lawful load for the area upon which it would stand shall be brought into or
kept upon any tenant’s premises. If, in the judgment of Landlord, it is
necessary to distribute the concentrated weight of any heavy object, the work
involved in such distribution shall be done at the expense of the tenant and in
such a manner as Landlord shall determine.

20.           No
machinery or mechanical equipment other than ordinary portable business
machines may be installed or operated in any tenant’s premises without Landlord’s
prior written consent, and in no case (even where the same are of a type so
excepted or as so consented to by Landlord) shall any machines or mechanical
equipment be so placed or operated as to disturb other tenants; but machines
and mechanical equipment which may be permitted to be installed and used in a
tenant’s premises shall be so equipped, installed and maintained by such tenant
as to prevent any disturbing noise, vibration or electrical or other
interference from being transmitted from such premises to any other area of the
Building.

21.           Landlord,
its contractors, and their respective employees, shall have the right to use,
without charge therefor all light, power and water in the premises of any
tenant while cleaning or making repairs or alterations in the premises of such
tenant.

22.           No
premises of any tenant shall be used for lodging or sleeping or for any immoral
or illegal purpose.

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

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

 

25.           No
tenant shall cause or permit any unusual or objectionable odors to emanate from
its premises which would annoy other tenants or create a public or private
nuisance. No cooking shall be done in the premises of any tenant except as is
expressly permitted in such tenant’s Lease.

26.           Nothing
shall be done or permitted in any tenant’s premises, and nothing shall be
brought into or kept in any tenant’s premises, which would impair or interfere
with any of the Building’s services or the proper and economic heating,
cleaning or other servicing of the Building or the premises, or the use or
enjoyment by any other tenant of any other premises nor shall there be
installed by any tenant any ventilating, air-conditioning, electrical or other
equip­ment of any kind which, in the judgment of Landlord, might cause any such
impairment or interference.

27.           No
acids, vapors or other materials shall be discharged or permitted to be
discharged into the waste lines, vents or flues of the Building which may
damage them. The water and wash closets and other plumbing fixtures in or
serving any tenant’s premises shall not be used for any purpose other than the
purposes for which they were designed or constructed, and no sweepings,
rubbish, rags, acids or other foreign substances shall be deposited therein. All
damages resulting from any misuse of the fixtures shall be borne by the tenants
who, or whose servants, employees, agents, visitors or licensees shall have,
caused the same. Any cuspidors or containers or receptacles used as such in the
premises of any tenant or for garbage or similar refuse, shall be emptied,
cared for and cleaned by and at the expense of such tenant.

28.           All
entrance doors in each tenant’s premises shall be left locked and all windows
shall be left closed by the tenant when the tenant’s premises are not in use. Entrance
doors shall not be left open at any time. Each tenant, before closing and
leaving its premises at any time, shall turn out all lights.

29.           Hand
trucks not equipped with rubber tires and side guards shall not be used within
the Building.

30.           All
windows in each tenant’s premises shall be kept closed, and all blinds therein
above the ground floor shall be lowered as reasonably required because of the
position of the sun, during the operation of the Building air-conditioning
system to cool or ventilate the tenant’s premises.

31.           Landlord
reserves the right to rescind, alter or waive any rule or regulation at
any time prescribed for the Building when, in its judgment, it deems it
necessary, desirable or proper for its best interest and for the best interests
of the tenants, and no alteration or waiver of any rule or regulation in
favor of one tenant shall operate as an alteration or waiver in favor of any
other tenant. Landlord shall not be responsible to any tenant for the
non-observance or violation by any other tenant of any of the rules and
regulations at any time prescribed for the Building.

 

 

 

EXHIBIT E

[NAME AND ADDRESS OF ISSUING
BANK]

[INSERT
DATE]

               IRREVOCABLE LETTER OF CREDIT NO. (insert
number)
[Landlord]
[c/o Hartz Mountain Industries, Inc.]
400 Plaza Drive
Secaucus, New Jersey  07096-1515

Ladies
and Gentlemen:

At
the request and for the account of [TENANT], located
at                                        
(hereinafter called “Applicant”), we hereby establish our Irrevocable Letter of
Credit No. [Insert number] in your favor and
authorize you and your assigns to draw on us up to the aggregate amount of US$
[TO BE INSERTED] available by your draft(s) at sight drawn on us and
accompanied by the following:

A statement signed to the effect of or
similar to the  following: “The drawer
hereunder is entitled to draw upon this letter of credit pursuant to that
certain lease agreement, dated [INSERT DATE], by and between [LANDLORD], as
Landlord, and [TENANT], as Tenant (the “Lease”).”

This
Irrevocable Letter of Credit will be duly honored by us at sight upon delivery
of the statement set forth above without inquiry as to the accuracy of such
statement and regardless of whether Applicant disputes the content of such
statement. Partial drawings against this Letter of Credit are permitted.

This
Irrevocable Letter of Credit shall automatically renew itself for successive
twelve (12) month periods from the date above, unless we notify you, by
certified mail, return receipt requested, of our intention not to renew at
least sixty (60) days prior to any annual renewal date.

This
irrevocable Letter of Credit is transferable at no charge to any transferee of
Landlord upon notice to the undersigned from you and such transferee.

Multiple
draws on this Letter of Credit are permitted.

You
shall have the right, at your option, to present a photocopy of this Letter of
Credit in lieu of the original and we shall make payment hereunder as if the
original were presented.

At
your option, draw requests may be made in person, or by mail, or by courier
service, including but not limited to FedEx, Airborne, or UPS.

At
your option draw requests may be made by fax to the following fax number (or
such other number as we may designate upon written notice to you):

Fax
number for draws hereunder: [INSERT FAX NUMBER].

 

If
the original of this Letter of Credit has been lost, stolen, mutilated or
destroyed upon receipt of (a) in the case of loss, theft or destruction of
this Letter of Credit, a certificate signed by an authorized officer of the
beneficiary (who is identified as such) to such effect or (b) in the case
of mutilation of this Letter of Credit. The mutilated Letter of Credit, we will
issue a replacement Letter of Credit in your favor, dated the same date,
bearing a new number, and in the same stated amount as, and with other
provisions identical to, this Letter of Credit.

This
undertaking is subject to The International Standby Practices 1998 (ISP98).

Upon
receipt of the documents above described, we shall pay you as requested.

	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Very truly yours,

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name of Bank

  	
   

  	
  Countersigned:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Vice President

  	
   

  	
  Vice President

  	
   

  	
   

  

 

 

EXHIBIT F

SCHEDULE OF FIXED RENT

	
  

  	
   

  	
  YEAR

  	
   

  	
  PER SQUARE FOOT*

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1

  	
   

  	
  $7.53

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  2

  	
   

  	
  $7.53

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  3

  	
   

  	
  $7.53

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  4

  	
   

  	
  $7.53

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  5

  	
   

  	
  $7.53

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  6

  	
   

  	
  $5.77

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  7

  	
   

  	
  $5.91

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  8

  	
   

  	
  $6.06

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  9

  	
   

  	
  $6.21

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  10

  	
   

  	
  $6.37

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  11

  	
   

  	
  $6.56

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  12

  	
   

  	
  $6.75

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  13

  	
   

  	
  $6.96

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  14

  	
   

  	
  $7.17

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  15

  	
   

  	
  $7.38

  	
   

  	
   

  	
   

  

 

* To determine Tenant’s
annual Fixed Rental, the Fixed Rent is multiplied by the Floor Space of the
Demised Premises (on a per square foot basis).

 

EXHIBIT G

FIXED RENT FLOOR

	
   

  	
   

  	
  YEAR

  	
   

  	
  PER SQUARE FOOT

  	
   

  	
   

  
	
   

  	
   

  	
  1

  	
   

  	
  $5.00

  	
   

  	
   

  
	
   

  	
   

  	
  2

  	
   

  	
  $5.15

  	
   

  	
   

  
	
   

  	
   

  	
  3

  	
   

  	
  $5.30

  	
   

  	
   

  
	
   

  	
   

  	
  4

  	
   

  	
  $5.46

  	
   

  	
   

  
	
   

  	
   

  	
  5

  	
   

  	
  $5.63

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