Document:

Exhibit
10.33

 

AGREEMENT OF LEASE

 

Between

 

OP & F BERNARDS – 78, L.L.C.

 

Landlord

 

And

 

RELIANT PHARMACEUTICALS, LLC

 

Tenant

 

Dated: February 5, 2001

 

110 Allen Road

Liberty Corner, New Jersey

 

 

INDEX

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  PREAMBLE

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.

  	
  Premises, Term and Purpose

  	
  2

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Rent

  	
  3

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Operating Expenses

  	
  4

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Completion of Improvements

  	
  7

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Tenant Covenants As To Condition
  of Premises, and Compliance with Laws

  	
  7

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Tenant Improvements, Alterations
  and Installations

  	
  8

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Various Negative Covenants by
  Tenant

  	
  9

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Various Affirmative Covenants of
  Tenant

  	
  9

  
	
   

  	
   

  	
   

  
	
  9

  	
  Building Directory and Signage

  	
  10

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Casualty and Insurance

  	
  10

  
	
   

  	
   

  	
   

  
	
  11.

  	
  Indemnification

  	
  12

  
	
   

  	
   

  	
   

  
	
  12.

  	
  Non-Liability of Landlord

  	
  13

  
	
   

  	
   

  	
   

  
	
  13.

  	
  Remedies and Termination upon
  Tenant Default

  	
  13

  
	
   

  	
   

  	
   

  
	
  14.

  	
  Holdover

  	
  16

  
	
   

  	
   

  	
   

  
	
  15.

  	
  Services; Electric Energy

  	
  16

  
	
   

  	
   

  	
   

  
	
  16.

  	
  Subordination

  	
  20

  
	
   

  	
   

  	
   

  
	
  17.

  	
  Landlord’s Cure of Tenant’s
  Default

  	
  23

  
	
   

  	
   

  	
   

  
	
  18.

  	
  Notices

  	
  23

  
	
   

  	
   

  	
   

  
	
  19.

  	
  Quiet Enjoyment

  	
  24

  
	
   

  	
   

  	
   

  
	
  20.

  	
  Security Deposit

  	
  24

  
	
   

  	
   

  	
   

  
	
  21.

  	
  Inspection and Entry by Landlord

  	
  26

  

 

i

 

	
  22.

  	
  Brokerage

  	
  26

  
	
   

  	
   

  	
   

  
	
  23.

  	
  Parking

  	
  26

  
	
   

  	
   

  	
   

  
	
  24.

  	
  Renewal Option

  	
  27

  
	
   

  	
   

  	
   

  
	
  25.

  	
  Landlord’s Inability to Perform

  	
  27

  
	
   

  	
   

  	
   

  
	
  26.

  	
  Condemnation

  	
  28

  
	
   

  	
   

  	
   

  
	
  27.

  	
  Assignment and Subletting

  	
  28

  
	
   

  	
   

  	
   

  
	
  28.

  	
  Environmental Laws

  	
  30

  
	
   

  	
   

  	
   

  
	
  29.

  	
  Parties Bound

  	
  32

  
	
   

  	
   

  	
   

  
	
  30.

  	
  Miscellaneous

  	
  33

  
	
   

  	
   

  	
   

  
	
  31.

  	
  Satellite/Antenna

  	
  34

  
	
   

  	
   

  	
   

  
	
  32.

  	
  Right of Second Offer

  	
  35

  

 

	
  EXHIBIT “A”
  -

  	
  FLOOR PLAN
  OF DEMISED PREMISES

  
	
   

  	
   

  
	
  EXHIBIT “B”
  -

  	
  WORK LETTER
  TO LEASE

  
	
   

  	
   

  
	
  EXHIBIT “C”
  -

  	
  RULES AND
  REGULATIONS

  
	
   

  	
   

  
	
  EXHIBIT “D”
  -

  	
  BUILDING
  HOLIDAYS

  
	
   

  	
   

  
	
  EXHIBIT E -

  	
  CLEANING
  SERVICES

  
	
   

  	
   

  
	
  EXHIBIT F -

  	
  RENT
  SCHEDULE

  
	
   

  	
   

  
	
  EXHIBIT G -

  	
  TENANT
  ESTOPPEL CERTIFICATE

  
	
   

  	
   

  
	
  EXHIBIT H -

  	
  FORM OF
  LETTER OF CREDIT

  

 

 

LEASE
AGREEMENT DATED February 5, 2001

 

BETWEEN OP & F BERNARDS – 78, L.L.C., a
limited liability company duly organized under the laws of the State of
Delaware (“Landlord”), having an office at c/o Lend Lease Real Estate
Investments, Inc., 787 Seventh Avenue, 46th Floor, New York, New York 10019,
AND RELIANT PHARMACEUTICALS, LLC, a Delaware limited liability company (“Tenant”),
having an address at 721 Route 202/206 South, Bridgewater, New Jersey 08807.

 

PREAMBLE

 

BASIC LEASE
PROVISIONS AND DEFINITIONS.

 

In addition to other terms elsewhere defined
in this Lease, the following terms whenever used in this Lease should have only
the meanings set forth in this Preamble, unless such meanings are expressly
modified, limited or expanded elsewhere herein.

 

1.             Premises or Demised Premises:  Outlined in red on the floor plan annexed
hereto and made a part hereof as Exhibit A consisting of approximately 52,417
rentable square feet located on the fourth floor in the east and west wings,
together with all fixtures, equipment, improvements and installations attached
thereto, in the building located at 110 Allen Road, Liberty Corner, Bernards
Township, New Jersey 07938 (the “Building”) located on the parcel of land more
particularly described in Exhibit A-1 annexed hereto and made a part hereof
(the “Land”). The Building and the Land are hereinafter collectively referred
to as the “Property.”

 

2.             Term:  Ten (10) years and five (5) months.

 

3.             Expiration Date:  Noon on the last day of the calendar month
occurring ten (10) years four (4) months after the Rent Commencement Date.

 

4.             Renewal Term:  Two (2) Five (5) year terms.

 

5.             Permitted Use:  General office use.

 

6.             Fixed Rent:  Thirty Dollars ($30.00) per rentable square
foot per annum from the Rent Commencement Date until the last day of the month
in which the sixtieth month anniversary of the Rent Commencement Date occurs,
and Thirty-four Dollars ($34.00) per rentable square foot per annum from the
first day of the month in which the sixty-first month anniversary of the Rent
Commencement Date occurs until the Expiration Date, the annual amount of which
is set forth in Exhibit F annexed hereto and made a part hereof.

 

7.             Monthly Fixed Rent:  One-Twelfth of the Fixed Rent, the monthly
amount of which is set forth in Exhibit F annexed hereto and made a part
hereof.

 

8.             Late Charge:  Four percent (4%) of the amount of the
payment due.

 

9.             Tenant’s Proportionate Share of
Expenses:  Twenty-six and 17/100
percent (26.17%), arrived at by dividing the square footage of the Demised
Premises (which for the

 

 

purposes of
this Lease, is agreed to be 52,417 square feet) by (ii) the Total Square
Footage of the Building (which for the purposes of this Lease is agreed to be
200,270 square feet).

 

10.           Security Deposit:  $1,956,901.20, subject to Paragraph 20
hereof.

 

11.           Tenant’s S.I.C. Code and Address for
Environmental Information (as per most recent S.I.C. Manual as published by the
United States Office of Management & Budget):                           .

 

12.           Designated Broker:  Cushman & Wakefield of New Jersey, Inc.
and GVA Williams.

 

13.           Number of Tenant Allocated Paying Spaces:  Four (4) spaces per 1,000 square feet of
rentable area (the “Non-Reserved Spaces”), including eleven (11) covered
reserved spaces (“Reserved Spaces”), which number shall be increased at the
rate of one (1) Reserved Space per 5,000 square feet of rentable area for any
Additional Space taken by Tenant pursuant to the terms of this Lease.

 

14.           Tenant’s Construction Allowance:  In accordance with Exhibit B attached hereto
and made a part hereof.

 

The parties hereby agree to the following
terms and conditions:

 

1.             Premises, Term and Purpose.

 

(a)           Landlord does hereby
lease to Tenant, and Tenant does hereby lease from Landlord, the Demised
Premises located in the Building for the Term commencing on the “Commencement
Date” as defined in Subparagraph (b) of this Paragraph 1, and ending on the
Expiration Date, or such earlier date upon which the Term may expire or be
terminated pursuant to the provisions of this Lease or pursuant to Law.

 

(b)           For purposes of this
Lease the commencement date shall be the date this Lease Agreement is fully
executed by the parties hereto (the “Commencement Date”).

 

(c)           The Demised Premises
shall be used by Tenant for the Permitted Use and for no other use or purpose.
Tenant shall not use or occupy the Demised Premises or any part thereof, for
any purpose deemed unlawful, disreputable, or extra-hazardous on account of
fire or other casualty, or for any purposes which shall impair the character of
the Building. Tenant, at its sole cost and expense shall obtain any consents,
licenses, permits or approvals required to conduct its business at the Demised
Premises.

 

(d)           The “Common Areas” of
the Property shall be those parts of the Building and other improvements
designated by Landlord from time to time for the common use of all tenants,
including among other facilities, halls, elevator and other lobbies, delivery
passages, drinking fountains, telephone closets, janitorial closets and other
similar facilities, public toilets, cafeteria and the like, and all garages, loading
docks, parking lots, service buildings or similar improvements operated, owned
or maintained, in whole or in part, by Landlord, and all parkways, drives,
green spaces, parks, fountains or other facilities owned, operated or

 

2

 

maintained, in
whole or in part, by Landlord, or otherwise made available by Landlord for use
by all tenants of the Property, whether used in conjunction with the use of
such space by the occupants of other buildings or used exclusively by tenants
of the Property, all of which facilities shall be subject to Landlord’s
reasonable management and control and shall be operated and maintained for the
benefit of all tenants in a first class manner. Tenant, and its employees and
invitees, shall have the non-exclusive right to use the Common Areas, such use
to be in common with Landlord, other tenants of the Property and other persons
entitled to use the same.

 

2.             Rent.

 

(a)           The rent reserved under
this Lease for the Term hereof shall be and consist of (a) the Fixed Rent
payable in equal monthly installments in advance, on the first day of each and
every calendar month during the Term (subject to Paragraphs (e) and (f) of this
Paragraph 2); plus (b) such additional rent (“Additional Rent”) in an amount
equal to Tenant’s Proportionate Share of Expenses (as such terms are defined in
Paragraph 3 of this Lease) as may be payable pursuant to the terms of this
Lease and all charges for services and utilities pursuant to Paragraph 15
hereof, and any other charges as shall become due and payable hereunder, which
Additional Rent shall be payable as hereinafter provided, all to be paid to
Landlord at its office stated above, or such other place as Landlord may
designate, in lawful money of the United States of America; provided, however,
that if the Rent Commencement Date shall occur on a date other than the first
calendar day of a month, the rent for the partial month commencing on the Rent
Commencement Date shall be appropriately pro-rated on the basis of the monthly
rent payable during the first year of the Term.

 

(b)           Tenant does hereby
covenant and agree promptly to pay the Fixed Rent, Additional Rent and any
other charges herein reserved as and when the same shall become due and
payable, without demand therefor, and without any set-off or deduction
whatsoever. All Additional Rent and other charges payable hereunder, which are
not due and payable on a monthly basis during the Term, unless otherwise
specified herein, shall be due and payable within fifteen (15) days of delivery
by Landlord to Tenant of notice to pay the same.

 

(c)           In the event that any
payment of Fixed Rent, Additional Rent or any other charges shall be paid after
the due date for same provided herein, Tenant shall pay, together with such
payment, the Late Charge and interest at 12% per annum for such unpaid amount
for the period thereafter that such payment shall remain unpaid.

 

(d)           Tenant may pay the
Fixed Rent, Additional Rent and any other charges herein reserved by wire
transfer of immediately available federal funds as directed by Landlord or by
check (subject to collection) drawn on a New York Clearinghouse Association
member bank.

 

(e)           Notwithstanding
anything to the contrary contained in this Paragraph 2, Tenant shall not be obligated
to pay to Landlord the monthly Fixed Rent from the Commencement Date until the
earlier of (i) the date that the Demised Premises are substantially completed
and a certificate (temporary or final) of occupancy has been issued by
appropriate governmental authority permitting occupancy of the Demised
Premises, or (ii) March 1, 2001 (the “Rent Commencement Date”).

 

3

 

(f)            Notwithstanding
anything to the contrary contained in this Paragraph 2, Tenant shall not be
obligated to pay to Landlord the portion of monthly Fixed Rent attributable to
22,417 rentable square feet of the Demised Premises, being Fifty-six Thousand
Forty-two and 50/100 Dollars ($56,042.50) per month, for the third (3rd),
fourth (4th), eighth (8th) and ninth (9th) months after the Rent Commencement
Date.

 

3.             Operating Expenses.

 

(a)           For purposes of this
Paragraph, the following definitions shall apply:

 

“Operating
Expenses Base” shall mean the calendar year 2001 (the “Operating Expense
Base Year”). In the event the Building is less than ninety-five (95%) percent
occupied during the Operating Expense Base Year, the Operating Expense Base
shall mean the amount obtained by adjusting the applicable Operating Expenses
for such period to a 95% Building occupancy level, such adjustment to be made
by adding to the actual Operating Expenses during such period such additional
amounts as would have been incurred if the Building had been 95% occupied.

 

“Initial
Year” shall mean the period of time from the Commencement Date until the
end of calendar year 2001.

 

“Lease Year”
shall mean each calendar year subsequent to the Initial Year.

 

“Real Estate
Taxes” shall mean the taxes and assessments now or hereafter imposed upon
all or any part of the Building and/or the Land, whether or not the same
constitute one or more tax lots. If, due to a change in the method of taxation
or assessment, any franchise, income, profit or other tax, however designated,
shall be substituted by the applicable taxing authority in whole or in part,
for the Real Estate Taxes now or hereafter imposed on the Building and/or the
Land, such franchise, income, profit or other tax shall be deemed to be
included in the term “Real Estate Taxes.”

 

“Real Estate
Taxes Base” shall mean the calendar year 2001 (the “Real Estate Taxes Base
Year”). “Tax Year” shall mean the twelve (12) month period commencing January 1
of each year, or such other period of twelve (12) months as may be duly adopted
as the fiscal year for real estate tax purposes in Bernards Township.

 

“Expenses”
shall mean (i) Real Estate Taxes and (ii) the total of all the normal and
customary costs and expenses for Class “A” office buildings in the Liberty
Corner/I-78 Area of Somerset County paid or incurred by Landlord with respect to
the management, operation, maintenance, and repair of the Building and the Land
and the services provided tenants therein, (excepting electrical energy
expenses paid directly by tenants (including Tenant) pursuant to Paragraph 15
of this Lease and equivalent provisions of other leases) including, but not
limited to, the cost and expenses incurred for and with respect to: all
utilities, including without limitation, water, electricity, gas, lighting,
sewer and waste disposal; air conditioning, ventilation and heating (subject to
the deduction hereinafter described); Common Area maintenance and cleaning;
elevators; escalators; protection and security; Common Area decoration and
interior and exterior landscape maintenance; snow removal, parking lot maintenance,
repairs, replacements and improvements which are appropriate for the continued

 

4

 

operation of
the Property in a first-class manner, maintenance and painting of non-tenant
areas; fire, all risk coverage, boiler and machinery, sprinkler, apparatus,
public liability and property damages, rental and plate glass insurance and any
insurance required by a mortgagee; supplies; wages, salaries, disability
benefits, pensions, hospitalization, retirement plans, group insurance,
continuing education, and other employee benefits respecting employees of the
Landlord up to and including the Property manager; uniforms and working clothes
for such employees as are required to wear uniforms on the job and the cleaning
thereof; expenses imposed on the Landlord pursuant to law or to any collective
bargaining agreement with respect to such employees; workmen’s compensation
insurance, payroll, social security, unemployment and other similar taxes with
respect to such employees; the cost for a bookkeeper and for an accountant;
professional and consulting fees; legal, auditing and environmental fees;
association fees or dues; the expenses, including payments to attorneys and
appraisers, incurred by Landlord in connection with any application or
proceeding wherein Landlord obtains or seeks to obtain reduction or refund of
the real estate taxes payable or paid upon or against the Property; management
fees of the Property and any other expenses of any other kind whatsoever
reasonably incurred in managing, operating, maintaining and repairing the
Property.

 

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

 

(i)            leasing commissions;

 

(ii)           salaries or benefits
for any employee above the grade of Property manager;

 

(iii)          start-up or opening
expenses;

 

(iv)          amounts received by
Landlord through proceeds of insurance or condemnation awards to the extent the
proceeds or awards are compensation for, or reimbursement of, expenses which
were previously included in expenses hereunder;

 

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

 

(vi)          advertising, and
promotional expenditures.

 

If during all or part of any calendar year,
Landlord shall not furnish any particular item(s) of work or service (which
would constitute an Operating Expense hereunder) to portions of the Property,
due to the fact that construction of the Property is not completed, or portions
of the Building are not occupied or leased or because such item of work or
service is not required or desired by the tenant of such portion, or such
tenant is itself obtaining and providing such item of work or service, or for
other reasons, for the purposes of computing the Additional Rent payable
hereunder, the amount of the Operating Expense for such item for such period shall
be increased by an amount equal to the additional operating and maintenance
expenses which would reasonably have been incurred during such period by
Landlord if it had at its own expense furnished such item of work or service to
such portion of the Property, provided, however, that

 

5

 

for those
operating and maintenance expenses which are influenced by occupancy levels,
such adjustment shall be made as if the Building had been ninety-five percent
(95%) occupied.

 

(b)           In the event (i) that
the Rent Commencement Date shall occur during a calendar year, (ii) that the
date of the expiration or other termination of this Lease shall be a day other
than the last day of a calendar year, or (iii) of any increase or decrease (as
herein provided) in the area of the Demised Premises or in the area of the
Building, then in each such event in applying the provisions of this Article 3
with respect to any calendar year in which such event shall have occurred,
appropriate adjustments shall be made to reflect the occurrence of such event
on a basis consistent with the principles underlying the provisions of this
Article 3, taking into consideration the portion of such calendar year which
shall have elapsed prior to the Rent Commencement Date, the date of such
expiration or other termination, or the date of such increase or decrease.

 

(c)           Tenant shall be
responsible for Tenant’s Proportionate Share of Expenses during the Term as
herein provided.

 

(i)            During the Initial
Year Tenant shall not be obligated to pay Tenant’s Proportionate Share of
Expenses.

 

(ii)           Prior to the end of the
Initial Year and thereafter for each successive Lease Year, or part thereof,
Landlord shall send to Tenant a statement of Landlord’s reasonable good faith
estimate of any anticipated increase in Operating Expenses and Real Estate
Taxes for the applicable Lease Year over the Operating Expense Base Year and
Real Estate Taxes Base Year, respectively, if any, (an “Expense Projection”),
and shall indicate what the estimated amount of Tenant’s Proportionate Share of
Expenses for such year shall be, said amount to be paid in equal monthly
installments (rounded to the nearest whole dollar) in advance on the first day
of each month by Tenant as Additional Rent commencing January 1st of the
applicable Lease Year.

 

(iii)          If during the course of
any Lease Year, Landlord shall have reason to believe that the Expenses shall
be higher than that upon which the aforesaid Expense Projections were
originally based as set forth in subparagraph (ii) above, then Landlord shall
be entitled to adjust the Expense Projection by a lump sum invoice for the
months of the Lease Year which precede the revised projections, and to advise
Tenant of an adjustment in future monthly projection amounts to the end result
that Landlord’s projected Expenses shall be on a reasonably current basis each
Lease Year. Such adjusted Expense Projections shall not be made more frequently
than semi-annually.

 

(iv)          Within forty-five (45)
days following the end of each Lease Year, Landlord shall send to Tenant a
statement of actual Expenses incurred for the prior Lease Year showing Tenant’s
Proportionate Share of Expenses due from Tenant. In the event the amount
prepaid by Tenant exceeds the amount that was actually due based upon actual
year end cost, then Landlord shall pay to Tenant, at the time such statement is
delivered to Tenant, an amount equal to the overcharge. In the event Landlord
has undercharged Tenant, then Landlord shall send Tenant an invoice with the
additional amount due which amount shall be paid in full by Tenant within
fifteen (15) days of Tenant’s receipt of such invoice.

 

6

 

(d)           Each and every of the
aforesaid Expense Projection amounts, whether requiring lump sum payment or
constituting projected monthly amounts added to the set rent, shall for all
purposes be treated and considered as Additional Rent and the failure of Tenant
to pay the same as and when due in advance and without demand shall have the
same effect as failure to pay any installment of the Fixed Rent and shall
afford Landlord all the remedies provided in this Lease therefor, including,
without limitation, the Late Charge as provided in Paragraph 2(c) of this
Lease.

 

(e)           Tenant acknowledges and
agrees that Landlord shall have the right to change the period of the Lease
Year, either before or during the Term, to any other fiscal year or twelve
month period. In the event Landlord makes such change, then the same shall be
effective upon written notice to Tenant and, in such event, Tenant shall pay
Tenant’s Proportionate Share of Expenses for the period from the end of the
then current designated Lease Year, as last billed, to the beginning of the
newly designated Lease Year, prorated for such period, within twenty (20) days
of the rendering by Landlord of the bill for such interim period. If the
Building shall have been less than ninety-five percent (95%) occupied during
the entire Lease Year, then the Expenses shall be projected for such Lease Year
as set forth in the last paragraph of the definition of Expenses contained
herein. Real Estate Taxes for the purposes of this Lease shall reflect the full
assessed value of the Property multiplied by the tax rate then in effect.

 

4.             Completion of Improvements.

 

(a)           Tenant agrees to make
the improvements and other work in and to the Demised Premises in accordance
with the terms, conditions and provisions of Exhibit B, attached hereto and
made a part hereof (“Tenant’s Work”).

 

(b)           Tenant shall occupy the
Demised Premises as soon as reasonably practicable after the same are
substantially completed and a certificate (temporary or final) has been issued
by appropriate governmental authority permitting occupancy of the Demised
Premises for the purposes set forth herein.

 

5.             Tenant Covenants As To Condition of
Premises, and Compliance with Laws.

 

(a)           In the event that the
Property, the Building or any of the equipment affixed thereto or stored
therein should be damaged as a result of any act of Tenant, its agents,
servants, employees, invitees or contractors, Tenant shall, upon demand, pay to
Landlord the cost of all required repairs, including structural repairs. Tenant
shall commit no act of waste and shall take good care of the Demised Premises and
the equipment affixed thereto and stored therein, shall maintain the Demised
Premises in good condition and state of repair, and at the end or certain
expiration of the term hereof, shall deliver up the Demised Premises in good
order and condition, wear and tear from a reasonable use thereof excepted. If
Tenant fails to so maintain and repair the Premises, Landlord shall perform, or
cause to be performed, all such maintenance and repairs and Tenant shall pay to
Landlord the costs incurred therefor immediately upon demand as Additional
Rent.

 

(b)           Except as set forth
below, to Landlord’s knowledge, the Building is currently in material
compliance with all applicable governmental laws, rules, regulations and

 

7

 

ordinances
(including, without limitation, the Board of Fire Underwriters and the
Americans with Disabilities Act of 1990, 42 U.S.C. § 12101 et seq. and any
State or municipal counterparts (collectively, the “ADA”)). Any law, rule,
regulation or ordinance (including, without limitation, the ADA) applicable to
the Premises generally and not as a result of Tenant’s specific and unique
manner of use, shall be complied with by Landlord and included as an Operating
Expense to the extent permitted under Paragraph 3. Notwithstanding anything to
the contrary contained in the foregoing, Tenant agrees to accept the Demised
Premises in its “As Is” condition and Tenant acknowledges that certain doorways
within the Demised Premises may not comply with applicable law and are the
responsibility of Tenant to remedy, if required by applicable law. In addition,
Tenant shall, at its sole cost and expense, comply with all applicable
governmental laws, rules, regulations and ordinances (including, without
limitation, the ADA), and of all insurance bodies (including, without
limitation, the Board of Fire Underwriters), at any time duly issued or in
force, including, but not limited to, making structural changes to the Premises
or being liable for the costs thereof, if such compliance is necessitated by
reason of Tenant’s Work or the specific manner of use by Tenant of the Premises
or the use by Tenant of the Premises for purposes other than normal and
customary office purposes.

 

6.             Tenant Improvements, Alterations and
Installations.

 

(a)           All fixtures (including
movable trade fixtures), equipment, improvements, alterations, installations
which are attached to the Demised Premises and the roof of the Building
(pursuant to Paragraph 31), and any additions and appurtenances made by Tenant
to the Demised Premises shall be and remain the property of Tenant. Not later
than the last day of the Term, Tenant shall, at its expense, remove from the
Demised Premises all of its personal property and such fixtures, equipment,
improvements, alterations and installations as Landlord elects to have removed.
Tenant, at its sole cost and expense, shall repair injury done by or in
connection with the installation or removal of such items. Any such items or
goods or other property of Tenant, not removed by Tenant upon the termination
of this Lease, or upon any quitting, vacating or abandonment of the Demised
Premises by Tenant, or upon Tenant’s eviction, shall be considered as abandoned
and Landlord shall have the right, without any notice to Tenant, to sell or
otherwise dispose of the same, at the expense of Tenant, and shall not be
accountable to Tenant for any part of the proceeds of such sale, if any.
Landlord may have any such property stored at Tenant’s risk and expense.

 

(b)           Tenant, without
Landlord’s prior consent, shall have the right to make non-structural
alterations, installations, additions or improvements in or to the Demised
Premises that (i) involve a total cost of not more than Ten Thousand Dollars
($10,000.00), (ii) do not require a building permit to be issued by any
governmental authority to legally make same, and (iii) do not affect any
existing building systems outside the Demised Premises and do not impair or
affect any existing building systems within the Demised Premises. No other alterations,
installations, additions or improvements (structural or non-structural) shall
be made by Tenant without Landlord’s express prior written approval, which
Landlord agrees shall not be unreasonably withheld. Tenant shall give Landlord
prior written notice of any proposed alterations, installations, additions or
improvements even if Landlord’s prior consent is not required hereunder,
(hereinafter called “Alterations”) with copies of proposed plans. All such
Alterations shall be done at Tenant’s sole expense and the making thereof shall
not interfere with the use of the Building by other tenants or disturb
harmonious labor relations with Landlord’s

 

8

 

employees,
agents, contractors or subcontractors. Tenant agrees to indemnify, defend and
hold harmless Landlord from any and all costs, expenses, claims, causes of
action, damages and liabilities of any type or nature whatsoever (including,
but not limited to reasonable attorneys’ fees and costs of litigation) arising
out of or relating to the making of the Alterations by Tenant. Nothing herein
contained shall be construed as constituting the permission of Landlord for a
mechanic or subcontractor to file a lien claim against the Demised Premises and
Tenant agrees to secure the removal of any such lien which a contractor
purports to file against said premises by payment or otherwise pursuant to law.
All such Alterations shall be effected in compliance with all applicable laws,
ordinances, rules and regulations of governmental bodies having or asserting
jurisdiction over the Demised Premises.

 

(c)           Tenant shall deliver,
within 30 days after substantial completion of any Alterations, as-built plans
and specifications of the Premises reflecting such Alterations which are
suitable for computer scanning by Landlord. In addition, if such as-built plans
and specifications are prepared for the Tenant by the Tenant’s architect or
engineer on an Autocad Computer Assisted Drafting and Design (“CADD”) System
(or other computer system(s)), Tenant shall also deliver magnetic computer
media or CD-ROM of such “as-built” drawings and specifications to Landlord.

 

7.             Various Negative Covenants by Tenant.
Tenant agrees that it shall not, without Landlord’s prior written consent:

 

(a)           Do anything in or near
the Demised Premises which will increase the rate of fire insurance on the
Property unless Tenant agrees in writing to pay for any such increase;

 

(b)           Permit the accumulation
of waste or refuse matter in or near the Demised Premises except in containers
provided therefor;

 

(c)           Mortgage, hypothecate,
pledge or encumber this Lease in whole or in part; or

 

(d)           Permit any signs,
lettering or advertising matter to be erected or attached to the Demised
Premises, except as permitted pursuant to Paragraph 9 hereof;

 

(e)           Encumber or obstruct
the Common Areas surrounding the Demised Premises nor cause same to be
encumbered or obstructed, nor encumber or obstruct any access ways to the
Demised Premises, nor cause same to be encumbered or obstructed.

 

8.             Various Affirmative Covenants of Tenant.
Tenant covenants and agrees that Tenant will:

 

(a)           At any time and from
time to time, but not more often than twice in any Lease Year, execute,
acknowledge and deliver to Landlord, or to anyone Landlord shall designate, a
tenant estoppel certificate in the form annexed hereto and made a part hereof
as Exhibit “G” or other customary and reasonable form reasonably acceptable to
financial institutions requesting the same relating to matters customarily
included in tenant estoppel certificates within ten (10) days of receipt of
Landlord’s request accompanied by such certificate.

 

9

 

(b)           Faithfully observe and
comply with the rules and regulations annexed hereto and made a part hereof as
Exhibit “C” and such reasonable additional rules and regulations as Landlord
hereafter at any time or from time to time may communicate in writing to
Tenant, and which, in the reasonable judgment of Landlord, shall be necessary
or desirable for the reputation, safety, care or appearance of the Property, or
the preservation of good order therein, or the operation or maintenance of the
Property, or the equipment thereof, or the comfort of tenants or others in the
Property; provided, however, that in the case of any conflict between the
provisions of this Lease and any such rule or regulation, the provisions of
this Lease shall control. Nothing contained in this Lease shall be construed to
impose upon Landlord any duty or obligation to enforce the rules and
regulations or the terms, covenants or conditions in any other lease as against
any other tenant, and Landlord shall not be liable to Tenant for violation of
any rule or regulation by any other tenant, its employees, agents, visitors,
invitees, subtenants or licensees.

 

9              Building Directory and Signage. Landlord
will, at the request of Tenant and at Tenant’s sole cost and expense, maintain
(i) listings on the directory located in the lobby of the building; (ii)
Building standard signage on the doorway leading to the Demised Premises; and
(iii) monument signage on the monument on Allen Road with the size and location
of Tenant’s name commensurate with Tenant’s Proportionate Share. No signs of
any kind shall be installed or maintained by Tenant without Landlord’s prior
written consent.

 

10.           Casualty and Insurance.

 

(a)           In the event of partial
or total destruction of the Building or the Demised Premises by reason of fire
or any other cause Tenant shall immediately after it becomes aware of such destruction
notify Landlord of same and Landlord shall promptly restore and rebuild the
Building or the Demised Premises at Landlord’s expense (but only to the extent
of the insurance proceeds covering such damage), unless Landlord elects by
notice to Tenant within ninety (90) days of said destruction not to restore and
rebuild the Building or the Demised Premises, and, in such case, this Lease
shall terminate. Notwithstanding the foregoing, Landlord shall not have the
right to terminate this Lease if the destruction is limited to the Common Areas
of the Building or, if in Landlord’s reasonable opinion, the Demised Premises
can be restored to its original condition within one hundred eighty (180) days.
If in Landlord’s reasonable opinion, as expressed in a notice to Tenant given
within forty-five (45) days after such destruction, the Demised Premises cannot
be restored to its original condition within one hundred eighty (180) days, or
if the Demised Premises are not restored within two hundred seventy (270) days
of the casualty (subject to Force Majeure), or if more than fifty percent (50%)
of the Demised Premises are destroyed, Tenant shall have the right to cancel
this Lease by providing written notice to Landlord of such cancellation within
ten (10) days of receipt of such notice from Landlord, time being of the
essence with respect to such notice, and such termination shall be effective
thirty (30) days after the date of such notice, provided, however, that
Landlord may nullify any such notice by completing such restoration and
rebuilding within such thirty (30) day period. In the event the Demised
Premises are totally or materially destroyed during the last twelve (12) months
of the Term or last twelve (12) months of any extensions or renewals thereof,
unless Tenant shall have exercised any further renewal options herein prior to
such fire or destruction so that this Lease, including only irrevocably
exercised renewals, has a remaining Term of more than twelve (12) months,
either Landlord or Tenant shall have the right to cancel this Lease by

 

10

 

providing
written notice to the other of such cancellation within ten (10) days of such
fire or destruction, time being of the essence with respect to such notice, and
such termination shall be effective thirty (30) days after the date of such
notice. If Landlord is obligated to restore and rebuild the Demised Premises
or, if it is not obligated, Landlord elects to restore and rebuild the Demised
Premises, then during the period of restoration of any such area, and, if any
portion of Demised Premises are rendered untenantable by said damage, Tenant
shall be relieved of the obligation to pay that portion of the rent herein
reserved which relates to said untenantable area. If the Lease is canceled by
either Landlord or Tenant pursuant to this Paragraph 10(a), and provided that
Tenant is not in default under this Lease at the time of such cancellation,
Landlord shall return the Security Deposit to Tenant subject to the terms of
Paragraph 20 of this Lease.

 

(b)           Tenant shall, at Tenant’s
sole cost and expense, but, except to the extent prohibited by law with respect
to workmen’s compensation insurance, for the mutual benefit of Landlord and
Tenant and any Additional Insured (as hereinafter defined) or any other
additional insured as Landlord may from time to time determine including the
lessors under any ground leases or underlying leases and any mortgagees,
maintain or cause to be maintained (a) comprehensive general liability insurance,
including but not limited to, premises, bodily injury, personal injury and
contractual liability, coverages for any and all or injury resulted from any
act or omission on the part of Tenant or Tenant’s contractors, licensees,
agents, visitors or employees, on or about the Demised Premises including such
claims arising out of the construction of improvements on the Demised Premises,
such insurance to afford protection to the Limit of not less than Five Million
Dollars ($5,000,000.00) in respect to injury or death to any one person or to
any number of persons or property damage arising out of a single occurrence;
(b) workmen’s compensation insurance covering all persons employed in
connection with the construction of any improvements by Tenant and the
operation of its business upon the Demised Premises and (c) “all risk” coverage
on all of Tenant’s personal property, including, but not limited to, standard
fire and extended coverage insurance with vandalism and malicious mischief
endorsements on all Tenants improvements and alterations in or about the
Demised Premises, to the extent of their full replacement value. In the event
Landlord, at any time during the term of the Lease, reasonably determines that
Tenant’s insurance coverage is inadequate, based upon the coverages being
required by landlords of comparable buildings in the general geographic area of
the Property, Landlord shall have the right to require Tenant to increase its
insurance coverage. All such insurance shall, to the extent permitted by law,
name Landlord, any mortgagees and ground lessors of the Land and the Building
and their successors and assigns as additional insureds (the “Additional
Insureds”) and shall be written by a good and solvent insurance carrier
authorized to do business in the State of New Jersey.

 

(c)           Prior to the
Commencement Date, and at least thirty (30) days prior to the expiration date
of any policy, Tenant shall furnish evidence of such insurance and payment of
premiums thereon to Landlord. Such insurance shall be in form reasonably
satisfactory to Landlord and without limitation, shall provide that no
cancellation or lapse thereof or change therein shall be effective until after
thirty (30) days’ written notice to Landlord at the address specified in
Paragraph 18 of this Lease. Tenant waives all rights of recovery against
Landlord and the Additional Insureds for any loss, damages, or injury of any
nature whatsoever to property or persons for which the Tenant is insured.

 

11

 

(d)           During the term of this
Lease, Landlord and Tenant shall each maintain in effect in each insurance
policy required under this Lease that relates to property damage a waiver of
subrogation in favor of the other and the Additional Insureds from its
then-current insurance carriers, and shall at all times furnish evidence of
such currently effective waiver to the other. Such waiver shall be in a form
reasonably satisfactory to the other and without limitation, shall provide that
no cancellation or lapse thereof or change therein shall be effective until
after thirty (30) days’ written notice to the other at the address, specified
in Paragraph 18 of this Lease.

 

(e)           Each insurance policy
required to be maintained under this Lease shall state that with respect to the
interest of Landlord and the Additional Insureds the insurance maintained
pursuant to each such policy shall not be invalidated by any action or inaction
of Tenant and shall insure Landlord and the Additional Insureds regardless of
any breach or violation of any warranties, declarations, conditions or
exclusions by Tenant.

 

(f)            Each insurance policy
required to be maintained under this Lease shall state that all provisions of
each such insurance policy, except for the limits of liability, shall operate
in the same manner as if a separate policy had been issued to each person or
entity insured thereunder.

 

(g)           Each insurance policy
required to be maintained under this Lease shall state that the insurance
provided thereunder is primary insurance without any right of contribution from
any other insurance which may be carried by or for the benefit of Landlord and
the Additional Insureds.

 

(h)           Each insurance policy
required to be maintained under this Lease shall recognize the indemnification
set forth in Paragraph 11 of this Lease.

 

(i)            Failure of Tenant to
maintain any of the insurance required under this Lease or to cause to be
provided in any insurance policy the material requirements set forth in this
Paragraph 10, shall constitute a default under this Lease without any notice
being required by Landlord.

 

(j)            Landlord shall
maintain, at Landlord’s sole cost and expense, during the Term of this Lease,
fire insurance with standard “all risk” coverage for the Building. Such
coverage shall equal one hundred percent (100%) of the full replacement cost of
the Building.

 

11.           Indemnification. Each of Landlord and
Tenant shall indemnify, defend and hold harmless the other, the Additional
Insureds, any mortgagee, and any lessor under any underlying leases or ground
leases, from and against any expense (including, without limitation, legal and
collection fees), loss or liability suffered or incurred as a result of or in
connection with (i) any breach by such party of its obligations contained in
this Lease or (ii) its acts or the acts of its agents, servants, invitees,
contractors or employees (not arising as a result of the other party’s
negligence or willful misconduct).

 

12.           Non-Liability of Landlord. Landlord
shall not be liable for (and Tenant shall make no claim for) any property
damage which may be sustained by Tenant or any other person:  (i) as a consequence of the failure,
breakage, leakage, inadequacy, defect or obstruction of the water, plumbing,
steam, sewer, waste or soil pipes, roof, drains, leaders, gutters, valleys,

 

12

 

downspouts, or
the like or of the electrical, gas, power, conveyor, refrigeration, sprinkler,
air conditioning or heating systems, elevators or hoisting equipment; or (ii)
by reason of the elements; or (iii) resulting from the carelessness, negligence
or improper conduct on the part of any other tenant of Landlord or of the
Landlord or Landlord’s or this or any other tenant’s agents, employees, guests,
licensees, invitees, subtenants, assignees or successors except for the willful
misconduct or negligence of Landlord or its agents, employees, guests,
licensees, invitees, subtenants, assignees or successors; or (iv) attributable
to any interference with, interruption of or failure, except resulting from
Landlord’s negligence, of any services or utilities to be furnished or supplied
by Landlord. Tenant shall give Landlord prompt written notice of the occurrence
of any events set forth in this Paragraph 12. Tenant shall indemnify Landlord
from any expense (including legal fees), loss, liability or damages suffered or
incurred in connection with the matters referred to in this Paragraph.

 

13.           Remedies and Termination upon Tenant
Default.

 

(a)           This Lease and the term
and estate hereby granted are subject to the limitation that:

 

(i)            if Tenant defaults in
the payment of any Rent, and such default continues for 5 business days after
Landlord gives to Tenant a notice specifying such default, or

 

(ii)           if Tenant defaults in
the keeping, observance or performance of any covenant or agreement (other than
a default of the character referred to in Paragraph (a)(i), (iii), (iv) or (v),
and if such default continues and is not cured within 15 days after Landlord
gives to Tenant a notice specifying the same, or, in the case of a default
which for causes beyond Tenant’s reasonable control cannot with due diligence
be cured within such period of 15 days, if Tenant shall not immediately upon
the receipt of such notice, (a) advise Landlord of Tenant’s intention duly to
institute all steps necessary to cure such default or (b) institute and
thereafter diligently prosecute to completion all steps necessary to cure the
same, or

 

(iii)          if this Lease or the
estate hereby granted would, by operation of law or otherwise, devolve upon or
pass to any person or entity other than Tenant except in accordance with
Paragraph 27 hereof, or

 

(iv)          if Tenant shall abandon
the Premises for longer than 45 days (and the fact that any of Tenant’s
property remains in the Premises shall not be evidence that Tenant has not
abandoned the Premises), or

 

(v)           if a default of the
kind set forth in Paragraph 13(a) (i) shall occur and have been cured, and if a
similar default shall occur more than two times within the next 365 days,
whether or not such similar defaults are cured within the applicable grace
period,

 

then, in any
of such cases, in addition to any other remedies available to Landlord at law
or in equity, Landlord shall be entitled to give to Tenant a notice of
intention to end the Term at the expiration of 5 business days from the date of
the giving of such notice, and, in the event such notice is given, this Lease
and the term and estate hereby granted shall terminate upon the expiration of
such 5 business days with the same effect as if the last of such 5 business
days were

 

13

 

the Expiration
Date, but Tenant shall remain liable for damages as provided herein or pursuant
to law.

 

(b)           If Tenant defaults in
the payment of any Rent and such default continues for 5 business days after
Landlord’s notice, or if this Lease shall terminate as in Paragraph 13(a)
provided, Landlord or Landlord’s agents and servants may immediately or at any
time thereafter re-enter into or upon the 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 persons therefrom, to the end that
Landlord may have, hold and enjoy the Premises. The words “re-enter” and “re-entering”
as used in this Lease are not restricted to their technical legal meanings.
Upon such termination or re-entry, Tenant shall pay to Landlord any Rent then
due and owing (in addition to any damages payable hereunder).

 

(c)           If this Lease is
terminated under Paragraph 13(a), or if Landlord re-enters the Premises under
Paragraph 13(b), Tenant shall pay to Landlord as damages, at the election of
Landlord, either:

 

(i)            a sum which, at the
time of such termination, represents the then value of the excess, if any, of
(1) the aggregate of the Rent which, had this Lease not terminated, would have
been payable hereunder by Tenant for the period commencing on the day following
the date of such termination or re-entry to and including the Expiration Date
over (2) the aggregate fair rental value of the Premises for the same period
(for the purposes of this clause (c)(i) the amount of Additional Rent which
would have been payable by Tenant under this Lease shall, for each calendar
year ending after such termination or re-entry, be deemed to be an amount equal
to the amount of such Additional Rent payable by Tenant for the calendar year
immediately preceding the calendar year in which such termination or re-entry
shall occur), or

 

(ii)           sums equal to the Rent
that would have been payable by Tenant through and including the Expiration
Date had this Lease not terminated or had Landlord not re-entered the Premises,
payable upon the due dates therefor specified in this Lease; provided, that if
Landlord shall relet all or any part of the Premises for all or any part of the
period commencing on the day following the date of such termination or re-entry
to and including the Expiration Date, 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 and of re-entering the Premises and of securing possession thereof, as
well as the expenses of reletting, including, without limitation, altering and
preparing the Premises for new tenants, brokers’ commissions, and all other
expenses properly chargeable against the Premises and the rental therefrom in
connection with such reletting, it being understood that any such reletting may
be for a period equal to or shorter or longer than said period; provided,
further, that (i) in no event shall Tenant be entitled to receive any excess of
such net rents over the sums payable by Tenant to Landlord under this Lease,
(ii) in no event shall Tenant be entitled, in any suit for the collection of
damages pursuant to this Paragraph 13(c), to a credit in respect of any net
rents from a reletting except to the extent that such net rents are actually
received by Landlord prior to the commencement of such suit, (iii) if the
Premises or any part thereof should be relet in combination with other space,
then proper apportionment on a square foot rentable area basis

 

14

 

shall be made
of the rent received from such reletting and of the expenses of reletting, and
(iv) Landlord shall have no obligation to so relet the Premises and Tenant
hereby waives any right Tenant may have, at law or in equity, to require
Landlord to so relet the Premises.

 

Suit or suits for the recovery of any damages
payable hereunder by Tenant, or any installments thereof, may be brought by
Landlord from time to time at its election, and nothing contained herein shall
require Landlord to postpone suit until the date when the Term would have
expired but for such termination or re-entry.

 

(d)           Nothing contained in
this Lease shall be construed as limiting or precluding the 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. Anything in this Lease
to the contrary notwithstanding, during the continuation of any default by
Tenant, Tenant shall not be entitled to exercise any rights or options, or to
receive any funds or proceeds being held, under or pursuant to this Lease.

 

(e)           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 specified remedies
to which Landlord may resort hereunder are cumulative and are not intended to
be exclusive of any other remedies or means of redress to which Landlord may
lawfully be entitled, and Landlord may invoke any remedy allowed at law or in
equity as if specific remedies were not herein provided for.

 

(f)            Tenant waives and
surrenders all right and privilege that Tenant might have under or by reason of
any present or future law to redeem the Premises or to have a continuance of
this Lease after Tenant is dispossessed or ejected therefrom by process of law
or under the terms of this Lease or after any termination of this Lease. Tenant
also waives the provisions of any law relating to notice and/or delay in levy
of execution in case of any eviction or dispossession for nonpayment of rent,
and the provisions of any successor or other law of like import. Landlord and
Tenant each waive trial by jury in any action in connection with this Lease.

 

(g)           Failure by either party
to declare any default immediately upon its occurrence or delay in taking any
action in connection with such default shall not waive such default but such
party shall have the right to declare any such default at any time thereafter.
Any amounts paid by Tenant to Landlord may be applied by Landlord, in Landlord’s
discretion, to any items then owing by Tenant to Landlord under this Lease.
Receipt by Landlord of a partial payment shall not be deemed to be an accord
and satisfaction (notwithstanding any endorsement or statement on any check or
any letter accompanying any check or payment) nor shall such receipt constitute
a waiver by Landlord of Tenant’s obligation to make full payment. No act or
thing done by Landlord or its agents shall be deemed an acceptance of a
surrender of the Premises, and no agreement to accept such surrender shall be
valid unless in writing and signed by Landlord and by each Superior Lessor and
Superior Mortgagee whose lease or mortgage provides that any such surrender may
not be accepted without its consent.

 

(h)           If Landlord places the
enforcement of this Lease or any part thereof, or the collection of any Rent
due or to become due hereunder, or recovery of the possession of the

 

15

 

Premises, in
the hands of an attorney, or files suit upon the same, or in the event any
bankruptcy, insolvency or other similar proceeding is commenced involving
Tenant, Tenant shall, upon demand, reimburse Landlord for Landlord’s attorneys’
fees and disbursements and court costs.

 

14.           Holdover. If Tenant holds over
without the consent of Landlord after expiration or termination of this Lease,
Tenant shall (a) pay as holdover rental for each month of the holdover tenancy
an amount equal to 200% of the greater of (1) the fair market rental value of
the Premises for such month (as reasonably determined by Landlord) or (ii) the
Rent which Tenant was obligated to pay for the month immediately preceding the
end of the Term; and (b) be liable to Landlord for and indemnify Landlord
against (i) any payment or rent concession which Landlord may be required to
make to any tenant obtained by Landlord for all or any part of the Premises (a “New
Tenant”) by reason of the late delivery of space to the new Tenant as a result
of Tenant’s holding over or in order to induce such New Tenant not to terminate
its lease by reason of the holding over by Tenant, (ii) the loss of the benefit
of the bargain if any New Tenant shall terminate its lease by reason of the
holding over by Tenant and (iii) any claim for damages by any New Tenant. No
holding over by Tenant after the term shall operate to extend the Term.
Notwithstanding the foregoing, the acceptance of any rent paid by Tenant
pursuant to this Paragraph 14 shall not preclude Landlord from commencing and
prosecuting a holdover or summary eviction proceeding.

 

15.           Services; Electric Energy.

 

(a)           Landlord will:  (i) supply heat for the warming of the
Demised Premises and the public portions of the Building during Business Hours
in the cold season, when and as required by law; (ii) furnish to, and
distribute in, the Demised Premises air conditioning during Business Hours when
it may be required for the comfortable occupancy of the Demised Premises by
Tenant; (iii) provide snow and ice removal for the parking area, sidewalks and
driveways in a reasonably expeditious manner; and (iv) provide refuse removal
from a dumpster to be provided on site to be used for normal waste attendant to
an office building. “Business Hours” as used in this Lease, means 8:00 a.m. to
6:00 p.m. on weekdays and 9:00 a.m. to 1:00 p.m. on Saturdays, and not
including Sundays and those legal holidays listed in Exhibit D annexed hereto
and made a part hereof. Tenant agrees at all times to cooperate fully with
Landlord and to abide by all the regulations and requirements which Landlord
may prescribe for the proper functioning and protection of such air conditioning
system. Landlord will clean the Demised Premises in accordance with the
cleaning schedule annexed hereto as Exhibit E. The cost of the services and
utilities provided pursuant to this Paragraph 15(a) (except for the cost of
electricity paid directly by Tenant pursuant to this Paragraph 15) is included
in Expenses as defined in Paragraph 3(a). Landlord shall provide access to the
Demised Premises to Tenant’s employees on a twenty-four (24) hour basis seven
(7) days per week, fifty-two (52) weeks per year, including elevator service.
Access to the Building before or after the Business Hours shall be provided
through a key card entry system. It is understood by Tenant that the key card
system is used in lieu of normal keys, and is not designed or intended to provide
security to a designated tenant. Tenant may, upon Landlord’s prior written
consent and subject to the terms of Paragraph 6 hereof, make modifications to
the key card system or install additional systems or camera surveillance
reasonably required by Tenant at Tenant’s cost and expense, provided such
installations or alterations do not interfere with access to the Building by
other tenants.

 

16

 

(b)           Provided Tenant is not
then in default of this Lease beyond applicable grace periods, Landlord will
provide to Tenant overtime HVAC services when and to the extent requested by
Tenant or when activated by Tenant’s use of an overtime thermostat and time
clock and in accordance with such reasonable conditions as shall be determined
by Landlord. Tenant shall pay to Landlord, as Additional Rent, an initial
charge equal to Seventy-five Dollars ($75.00) per hour for such HVAC service to
the Demised Premises, which charge may be increased by Landlord during the Term
of this Lease to reflect Landlord’s actual cost for such services. Such charge
shall constitute a direct charge to Tenant and not an Expense pursuant to
Paragraph 3. Notwithstanding the foregoing, the first fifty (50) hours of
overtime HVAC requested by Tenant each year shall be provided at no additional
charge.

 

(c)           Landlord reserves the
right, without liability to Tenant and without constituting any claim of
constructive eviction, to stop or interrupt any heating, lighting, ventilating,
air conditioning, gas, steam, power, electricity, water or other service and to
stop or interrupt the use of any Building facilities at such times as may be
necessary and for as long as may reasonably be required by reason of accidents,
strikes, or the making of repairs, alterations or improvements, or inability to
secure a proper supply of fuel, gas, steam, water electricity, labor or
supplies, or by reason of another similar or dissimilar cause beyond the
reasonable control of Landlord. No such stoppage or interruption shall entitle
Tenant to any diminution or abatement of rent or other compensation nor shall
this Lease or any of the obligations of Tenant be affected or reduced by reason
of any such stoppage or interruption. Landlord shall use reasonable diligence
(which shall not include incurring overtime charges) to make such repairs as
may be required to machinery or equipment in the Building to provide
restoration of any service and, where the cessation or interruption of such
service has occurred due to circumstances or conditions beyond the Property
boundaries, to cause the same to be restored by diligent application or request
to the provider. Landlord shall provide Tenant with reasonable prior written
notice of any planned interruptions of utilities, facilities and service.

 

(d)           Landlord shall furnish
to Tenant, through the transmission facilities installed in the Demised
Premises, electric energy to be used by or for the benefit of Tenant, at Tenant’s
expense as provided in this Article 15, in or in respect to the Demised
Premises in such reasonable quantity as shall be sufficient to provide for the
heating, ventilation and air conditioning of the Demised Premises and otherwise
to meet Tenant’s ordinary business needs for lighting and the operation of its
business machines, including photocopy equipment and computer and data
processing equipment, provided that Landlord shall not be obligated to provide
such electrical energy in an amount in excess of an average connected load of 4
kilowatts of electric consumption per square foot of rentable area for such
purposes.

 

(e)           In the event Tenant
exercises its Right of Second Offer to lease Additional Space in either the
east or west wing of the first floor of the Building as provided for in
Paragraph 32, and such Additional Space is not separately metered, Tenant shall
pay, upon presentation of a bill or bills from Landlord, its proportionate
share (“Tenant’s Share”) of the actual cost of electric energy used by all
tenants of either the east or west wing of the first floor, as the case may be,
as measured by the applicable electric meter. For purposes of this Paragraph,
Tenant’s Share shall be determined by dividing the rentable square feet of the
Demised Premises located in either the east or west wing of the first floor
leased by Tenant by the total rentable square feet of the east or west wing of
the first floor of the Building. Landlord shall have the

 

17

 

right to
modify Tenant’s Share of electrical expense at any time following the
Additional Space Commencement Date, as defined in Paragraph 32, by having a
survey (the “Survey”) made by a licensed independent electrical engineer
selected by Landlord (“Surveyor”) as an Expense hereunder. The amounts
determined by said Survey shall be based upon certain theoretical assumptions
incorporating approximate estimates of the probable consumption of electric
energy by the lighting fixtures and other equipment and business machines
installed in the Demised Premises, the anticipated periods of operation of such
lighting fixtures, equipment and machines and the cost of furnishing such
electric energy. The determination of the electricity charges by the Surveyor
shall be expressed as an annual dollar amount per square foot of the Demised
Premises and shall be binding and conclusive on Landlord and on Tenant unless
within fifteen (15) days after the delivery of a copy of such determination to
Tenant, Tenant disputes such determination by written notice to the Landlord.
Pending the resolution of any such dispute, however, Tenant shall pay to
Landlord in accordance with the provisions of this Paragraph 15(e), the amount
as determined by the Surveyor; provided, however, that if the electricity
charge as finally determined is different from that determined by the Surveyor,
then Landlord and Tenant shall make adjustment for any deficiency owed by
Tenant or overage paid by Tenant pursuant to the determination of the Surveyor.
Any dispute by Tenant over the determination of electricity charges by the Surveyor
shall be resolved by Tenant and Landlord selecting a different licensed
electrical engineer acceptable to both Landlord and Tenant, to prepare a new
survey (“New Survey”), which new survey shall be binding on Landlord and
Tenant. The cost of such New Survey shall be borne by Tenant unless the amount
determined by the Surveyor shall be more than 10% than that determined in the
disputed survey, in which latter event Landlord shall bear such cost.

 

(f)            Throughout the term of
this Lease, Landlord, at the Expense of Tenant may cause a new Survey to be
made by the Surveyor to determine if a further adjustment in the electricity
charges is warranted. When any such Survey (the “Subsequent Survey”) is so
completed and delivered to Tenant, the cost of electricity as set forth in the
Subsequent Survey shall become binding upon both parties as of the first day of
the month next succeeding the month in which Landlord receives a copy of the
Subsequent Survey, unless within fifteen (15) days after the delivery of such Subsequent
Survey, Tenant notifies Landlord, in writing, that it disputes the amount set
forth in said Subsequent Survey. Settlement of the dispute shall be made in the
same manner as provided in Paragraph 15(e) of this Lease.

 

(g)           The charge for
electricity determined in accordance with the provisions of this Article 15(e)
and (f) shall be paid by Tenant to Landlord as Additional Rent hereunder in the
following manner:

 

(i)            commencing on the
Additional Space Commencement Date and on the first day of each month
thereafter until Tenant receives a copy of the Survey; if any, as provided in
Paragraph 15(e), Tenant’s Share of electrical expense;

 

(ii)           commencing on the first
day of the month next succeeding the month in which Landlord and Tenant receive
a copy of the Survey (or the New Survey if one is prepared pursuant to
Paragraph 15(e) above), an amount equal to one-twelfth (1/12) of the annual
electricity charge allocable to the Additional Space as determined by the
Survey; and

 

18

 

(iii)          on the first day of each
month thereafter, throughout the term of this Lease one-twelfth (1/12) of the
annual electricity charge allocable to the Additional Space as determined by
the Survey or any Subsequent Survey (or the New Survey, if applicable).

 

Within thirty
(30) days after determination of the electricity charge in accordance with the
Survey, Landlord or Tenant, as the case may be, shall reimburse the other party
for any overpayment or underpayment of such charge calculated by comparison of
the total amount of estimated electricity charges paid with the amount which
would have been payable since the Commencement Date in accordance with the
Survey.

 

(h)           If the cost to Landlord
of electricity shall have been increased or decreased subsequently, by change
in Landlord’s electric rates, charges, fuel adjustment, or by taxes of any kind
imposed thereon, or for any other such reason, then the aforesaid electricity
charge as determined by the Survey or Subsequent Survey shall be increased or
decreased in the same percentage.

 

(i)            Landlord shall have
the right to discontinue furnishing electric energy to Tenant in the Demised
Premises at any time upon not less than thirty (30) days’ notice to Tenant. If
Landlord exercises such right of termination, this Lease shall continue in full
force and effect and shall be unaffected thereby, except only that, from and
after the effective date of such termination, Landlord shall not be obligated
to furnish electric energy to Tenant.

 

(j)            If Landlord
discontinues furnishing electric energy to Tenant, Tenant shall arrange to
obtain electric energy directly from the public utility company furnishing
electric service to the Building. Such electric energy may be furnished to
Tenant by means of the then existing Building system feeders, risers and wiring
to the extent that the same are available, suitable and safe for such purposes.
All meters and additional panel boards, feeds, risers, wiring and other
conductors and equipment which may be required to obtain electric energy
directly from such public utility company shall be installed by Landlord at
Tenant’s expense. There shall be no discontinuance of the furnishing of
electric current to the premises by Landlord until Tenant has completed its
arrangements to obtain electric current directly from the public utility
company furnishing electric current to the Building, so that there is no
interruption in the continuity of electric service.

 

(k)           In the event that
Tenant shall require electric energy for use in the Demised Premises in excess
of the quantity to be initially furnished as herein provided and if, in
Landlord’s reasonable judgment such excess requirements cannot be furnished
unless additional risers, conduits, feeders, switchboards and/or appurtenances
are installed in the Building, Landlord, upon written request of Tenant, will
proceed with reasonable diligence to install such additional risers, conduits,
feeders, switchboards and/or appurtenances provided the same and the use
thereof shall be permitted by applicable laws and insurance regulations and
shall not cause permanent damage or injury to the Building or the Premises or
cause or create a dangerous or hazardous condition or entail excessive or
unreasonable alterations or repairs or interfere with or disrupt other tenants
or occupants of the Building, and Tenant agrees to pay all costs and expenses
incurred by Landlord in connection with such installation.

 

19

 

(l)            Landlord, at Tenant’s
reasonable expense, shall purchase and install all lamps (including, but not
limited to, incandescent and fluorescent), starters and ballasts used in the
Premises, provided that the costs of such purchase and installation shall be at
costs conforming to market standards.

 

(m)          In order that Landlord
may at all times have all necessary information which it requires in order to
maintain and protect its equipment, Tenant agrees that Tenant will not make any
material alteration or material addition to the electrical equipment and/or
appliances in the Demised Premises without the prior written consent of
Landlord in each instance and will promptly advise Landlord of any other
alteration or addition to such electrical equipment and/or appliances. Tenant
agrees to advise Landlord in writing as to any material change in the periods
of use of the lighting fixtures and Tenant’s business machines and equipment.

 

(n)           Landlord shall in no
way be liable or responsible to Tenant for any loss or damage or expense which
Tenant may sustain or incur by reason of any failure, inadequacy or defect in
the character, quantity or supply of electric energy furnished to the Demised
Premises except for actual damage other than property damage suffered by Tenant
by reason of any negligence of Landlord.

 

(o)           Electric energy for the
portion of the Demised Premises located on the fourth floor of the Building is
obtained directly from the public utility furnishing electric service to the
Building and is equipped with its own electrical meter. In addition to
Paragraph 15(g), Tenant agrees to pay directly to the utility furnishing such
electric service the actual cost thereof as measured by the applicable electric
meter.

 

16.           Subordination.

 

(a)           This Lease, and all
rights of Tenant hereunder, are and shall be subject and subordinate in all
respects to all ground leases, operating leases, overriding leases and
underlying leases of the Land and/or the Building (or any portions thereof) now
or hereafter existing, and to all mortgages (and construction loan agreements)
which may now or hereafter affect the Land and/or the Building and/or any of
such leases, whether or not such mortgages shall also cover other lands and/or
buildings, to each and every advance made or hereafter to be made under such
mortgages (or construction loan agreements), and to all renewals,
modifications, replacements, substitutions and extensions of such leases and
mortgages, and to all spreaders and consolidations of such mortgages. This
Paragraph 16(a) shall be self-operative and no further instrument of
subordination shall be required. In confirmation of such subordination, Tenant
shall promptly execute and deliver at its own cost and expense any instrument,
in recordable form if requested, that Landlord, the lessor of any such lease or
the holder of any such mortgage or any of their respective successors in
interest may reasonably request to evidence such subordination. The leases to
which this Lease is, at the time referred to, subject and subordinate pursuant
to this Paragraph 16 are herein sometimes called “superior leases” and the
mortgage to which this Lease is, at the time referred to, subject and
subordinate are herein sometimes called ‘superior mortgages’. The lessor under
any superior lease is sometimes herein referred to as a “Superior Lessor”, and
the mortgagee under any superior mortgage is herein sometimes referred to as a “Superior
Mortgagee”.

 

20

 

(b)           If, in connection with
the obtaining, continuing or renewing of any financing for which the Building,
the Land or the interest of the lessee under any superior lease represents
collateral, in whole or in part, any bank, insurance company, pension fund or
other lending institution shall request reasonable modifications of this Lease
as a condition of its granting such financing, Tenant will not unreasonably
withhold its consent thereto, provided that such modifications do not (i)
increase the rental obligations or other costs and expenses payable by Tenant
under this Lease, (ii) increase or decrease the Term, (iii) decrease the
services required to be provided by Landlord hereunder, (iv) materially
increase any of Tenant’s other obligations under this Lease, or (v) materially
adversely affect any of Tenant’s other rights under this Lease or materially
diminish Landlord’s obligations hereunder.

 

(c)           In the event of any act
or omission of Landlord which would give Tenant the right, immediately or after
the lapse of a period of time, to cancel or terminate this Lease, or to claim a
partial or total eviction, Tenant agrees that Tenant shall not exercise such
right (i) until it has given written notice of such act or omission to the
holder of each superior lease and superior mortgage whose name and address
shall previously have been furnished to Tenant in writing, and (ii) 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 its superior
mortgage or superior lease, as the case my 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 written notice of its intention to, and commence
and continue to, remedy such act or omission.

 

(d)           If any Superior Lessor
or Superior Mortgagee, or such persons’ successors or assigns, shall succeed to
the rights of Landlord under this Lease, whether through possession or
foreclosure action or delivery of a new lease or deed, then at the request of
such party so succeeding to Landlord’s rights (herein sometimes called “successor
landlord”) and upon 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. From and after the date of Tenant’s attornment, the successor
landlord shall perform the obligations of Landlord to be paid or performed
pursuant to the terms of this Lease. The foregoing provisions of this Paragraph
16 shall inure to the benefit of any successor landlord, shall apply
notwithstanding that as a matter of law this Lease may terminate upon the
termination of the superior lease or superior mortgage, shall be self operative,
upon any such demand, and no further instrument shall be required to give
effect to said provisions. Upon such attornment this Lease shall continue in
full force and effect as, or as if it were, a direct lease between the
successor landlord and Tenant upon all of the executory terms, conditions and
covenants as are set forth in this Lease and shall be applicable after such
attornment, except that the successor landlord shall not:

 

(i)            be liable for any
previous act or omission or negligence of Landlord under this Lease;

 

21

 

(ii)           be subject to any
counterclaim, offset, or defense not expressly provided for in this Lease and
asserted with reasonable promptness, which shall have theretofore accrued to Tenant
against Landlord;

 

(iii)          be bound by any previous
modification of this Lease, not expressly provided for in this Lease, or by any
previous prepayment of more than one month’s Fixed Rent or Additional Rent
payable pursuant to this Lease (exclusive of any payment in the nature of a
security deposit), unless such modification or prepayment shall have been
expressly approved in writing by the Superior Lessor or the Superior Mortgagee
through or by reason of which the successor landlord shall have succeeded to
the rights of Landlord under this Lease; or

 

(iv)          be obligated to repair
the Demised Premises or the Building or any part thereof, in the event of total
or substantial total damage beyond such repair as can reasonably be
accomplished from the net proceeds of insurance actually made available to the
successor landlord, or be obligated to repair the Demised Premises or the
Building or any part thereof in the event of partial condemnation beyond such
repair as can reasonably be accomplished from the net proceeds of any award
actually made available to the successor landlord as consequential damages
allocable to the part of the Demised Premises or the Building not taken.

 

(e)           Nothing contained in
this Article 16 shall be construed to impair any right otherwise exercisable by
any Superior Mortgagee or Superior Lessor.

 

(f)            The holder of a
superior mortgage may elect that this Lease shall have priority over such
superior mortgage and upon notification to Tenant by the holder of such
superior mortgage, this Lease shall be deemed to have priority over such
superior mortgage whether this Lease is dated prior to or subsequent to the
date of such superior mortgage.

 

(g)           Tenant shall not
knowingly do or suffer or permit anything to be done which would constitute a
default under any superior mortgage or superior lease or cause any superior
lease to be terminated or forfeited by virtue of any rights of termination or
forfeiture reserved or vested in the lessor thereunder, it being understood
that the Permitted Use hereunder shall not be deemed to be a violation of such
superior mortgage or superior lease.

 

(h)           Landlord shall use
commercially reasonable efforts to obtain and provide to Tenant an agreement (a
“Non-Disturbance Agreement”) from the holder of any mortgage hereafter
encumbering the Property, in the usual form of such holder, in favor of Tenant,
providing in substance that so long as Tenant is not in default under the terms
of this Lease, the right of possession of Tenant to the Demised Premises shall
not be affected or disturbed by such holder in the exercise of any of its
rights under the mortgage or any note secured thereby, and any sale of the
Property pursuant to the exercise of any rights and remedies under the mortgage
or otherwise shall be made subject to Tenant’s right of possession under this
Lease. Such efforts shall include making a written request to each such holder
for such Non-Disturbance Agreement. Landlord shall incur no liability, nor
shall this Lease or the obligations of Tenant hereunder be affected in any
manner, in the event Landlord shall be unable to obtain a Non-Disturbance
Agreement from the holder of any mortgage in favor of Tenant. Furthermore,
Landlord shall not

 

22

 

be required to
incur any expense (other than a reasonable processing fee) or pay any
consideration in order to obtain any Non-Disturbance Agreement in favor of
Tenant.

 

17.           Landlord’s Cure of Tenant’s Default. If
Tenant shall fail or refuse to comply with and perform any conditions and
covenants of this Lease, Landlord may, if Landlord so elects, carry out and
perform such conditions and covenants, at the cost and expense of Tenant, and
the said cost and expense shall be payable on demand, or at the option of
Landlord shall be added to the installment of rent due immediately thereafter,
but in no case later than one month after such demand, whichever occurs sooner,
and shall be due and payable as such. This remedy shall be in addition to such
other remedies as Landlord may have hereunder by reason of the breach of Tenant
of any of the covenants and conditions contained in this Lease.

 

18.           Notices. Any notice, demand,
statement or other communication which under the terms of this Lease or under
any statute or law must or may be given shall be given by hand delivery to the
respective parties as follows or by registered or certified mail, return
receipt requested, or by reputable private overnight delivery service addressed
to the respective parties as follows:

 

	
  To Landlord:

  	
   

  	
  OP & F Bernards – 78, L.L.C.

  
	
   

  	
   

  	
  c/o Lend Lease Real Estate Investments, Inc.

  
	
   

  	
   

  	
  787 Seventh Avenue, 46th Floor

  
	
   

  	
   

  	
  New York, New York 10019

  
	
   

  	
   

  	
  Attention: John Carrick, Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Denise D. Pursley, Esq.

  
	
   

  	
   

  	
  Nixon Peabody LLP

  
	
   

  	
   

  	
  990 Stewart Avenue

  
	
   

  	
   

  	
  Garden City, New York 11530

  
	
   

  	
   

  	
   

  
	
  To Tenant:

  	
   

  	
  Reliant Pharmaceuticals LLC

  
	
   

  	
   

  	
  721 Route 202/206 South

  
	
   

  	
   

  	
  Bridgewater, New Jersey 08807

  
	
   

  	
   

  	
  Attention: Michael J. Lerner, Esq.

  
	
   

  	
   

  	
  Vice President and General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Latham & Watkins

  
	
   

  	
   

  	
  885 Third Avenue

  
	
   

  	
   

  	
  New York, New York 10022

  
	
   

  	
   

  	
  Attention: James Hisiger, Esq.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to the Demised Premises after the Rent

  Commencement Date.

  

 

Any such
notice, demand, statement or other communication shall be deemed to have been
given or made upon hand delivery or when deposited, postage paid, in the U.S.
Mail, or delivered, charges prepaid or charged to sender to a reputable private
overnight delivery service, as the case

 

23

 

may be. Any of
the above addresses may be changed at any time notice is given as above
provided.

 

19.           Quiet Enjoyment. Landlord covenants
that upon keeping and performing each and every covenant, agreement, term,
provision and condition herein contained on the part and on behalf of Tenant to
be kept and performed, shall quietly enjoy the Demised Premises without
hindrance or molestation by Landlord or by any other lawfully claiming by,
through or under the same subject to the covenants, agreements, terms,
provisions and conditions of this Lease and the effect of the application of
same.

 

20.           Security Deposit.

 

(a)           Tenant shall deposit
the sum of One Million Nine Hundred Fifty-six Thousand Nine Hundred One and
20/100 Dollars ($1,956,901.20) (the “Security Deposit”) with Landlord upon the
execution of this Lease in the form of a clean, irrevocable, non-documentary
and unconditional letter of credit substantially in the form attached hereto as
Exhibit H, as reduced in accordance with subparagraph (e) below (the “Letter of
Credit”) as security for the faithful performance and observance by Tenant of
the terms, covenants and conditions of this Lease, including the surrender of
possession of the Premises to Landlord as herein provided.

 

(b)           The Letter of Credit
shall be issued by and drawable upon any commercial bank, trust company,
national banking association or savings and loan association with offices for
banking and drawing purposes in the City of New York (the “Issuing Bank”), with
an Issuing Bank which Landlord shall reasonably approve. The Letter of Credit
shall (i) name Landlord as beneficiary, (ii) be in the amount of the Security
Deposit, (iii) have a term of not less than one year, (iv) permit multiple
drawings, (v) be fully transferable by Landlord to any assignee of Landlord’s
interest in the Lease in accordance with the terms hereof without the payment
of any fees or charges, and (vi) otherwise be in form and content as set forth
on Exhibit H attached hereto and made a part hereof; provided, however, that
Landlord shall in no event be obligated to accept a Letter of Credit, for any
amount less than $50,000. If upon any transfer of the Letter of Credit, any
fees or charges shall be so imposed, then such fees or charges shall be payable
solely by Tenant and the Letter of Credit shall so specify. The Letter of
Credit shall provide that it shall be deemed automatically renewed, without
amendment, for consecutive periods of one year each thereafter during the Term
through the date that is at least 60 days after the Expiration Date, unless the
Issuing Bank sends a notice (the “Non-Renewal Notice”) to Landlord by certified
mail, return receipt requested, not less than 30 days prior to the then-current
expiration date of the Letter of Credit, stating that the Issuing Bank has
elected not to renew the Letter of Credit. Unless Tenant replaces the Letter of
Credit within such 30 day period with a replacement Letter of Credit from an
Issuing Bank reasonably approved by Landlord, Landlord shall have the right,
upon receipt of a Non-Renewal Notice, to draw the full amount of the Letter of
Credit, by sight draft on the Issuing Bank, and shall thereafter hold or apply
the cash proceeds of the Letter of Credit pursuant to the terms of this
Paragraph 20. The Letter of Credit shall state that drafts drawn under and in
compliance with the terms of the Letter of Credit will be duly honored upon
presentation to the Issuing Bank at an office location in New York City. The
Letter of Credit shall be subject in all respects to the Uniform Customs and
Practice for Documentary Credits (1993 revision), International Chamber of
Commerce Publication No. 500.

 

24

 

(c)           If Tenant defaults in
the payment of performance of any of the terms, covenants or conditions of this
Lease, including the payment of rent, after any applicable notice and/or grace
periods, Landlord may notify the Issuing Bank in writing of the nature of
Tenant’s default and certify that Landlord has the right to draw upon the
Security Deposit (with a copy of such notice to be sent to Tenant) and
thereupon receive all or a portion of the Security Deposit represented by the
Letter of Credit, and use, apply, or retain the whole or any part of such
proceeds, as the case maybe, to the extent required for the payment of any Rent
or any other sum as to which Tenant is in default, including (i) any sum which
Landlord may expend or may be required to expend by reason of Tenant’s default,
and (ii) any damages to which Landlord is entitled pursuant to this Lease or
applicable legal requirements, whether such damages or deficiency accrue before
or after summary proceedings or other reentry by Landlord. If Landlord uses,
applies or retains any part of the Security Deposit, Tenant, upon demand, shall
deposit with Landlord the amount so applied or retained so that Landlord shall
have the full Security Deposit on hand at all times during the Term. If Tenant
shall fully and faithfully comply with all of the terms, covenants and
conditions of this Lease, the Security Deposit (or so much thereof as remains)
shall be returned to Tenant within 60 days after the expiration or earlier
termination of this Lease and after delivery of possession of the Premises to
Landlord in the manner required by this Lease. Tenant expressly agrees that
Tenant shall have no right to apply any portion of the Security Deposit against
any of Tenant’s obligations to pay Rent hereunder.

 

(d)           Upon a sale of the
Building or the Property or a leasing of the Building, or any financing of
Landlord’s interest therein, Landlord shall transfer the Letter of Credit to
the vendee, lessee or lender. Within 10 days after notice from Landlord of any
such anticipated sale, leasing or financing, Tenant, at its sole cost, shall
arrange for the transfer of the Letter of Credit to the new landlord or lender,
as designated by Landlord in the foregoing notice, or to have the Letter of
Credit reissued in the name of the new landlord or lender. Tenant shall look
solely to the new landlord or lender for the return of such Letter of Credit,
and the provisions of this Paragraph 20 shall apply to every transfer or
assignment made of the Security Deposit to a new landlord. Tenant will not
assign or encumber, or attempt to assign or encumber, the Letter of Credit, and
neither Landlord nor its successors or assigns shall be bound by any such
actual or attempted assignment or encumbrance.

 

(e)           Provided Tenant is not
in default beyond applicable grace periods, the Security Deposit shall be
reduced during the term hereof as follows:

 

(i)            On the second anniversary
of the Commencement Date, provided that Tenant’s total revenues for calendar
year 2002 exceed $500,000,000 and Tenant’s earnings before interest, taxes,
depreciation and amortization (“EBITDA”) exceed $100,000,000, as evidenced by
an audited financial statement and a certification from the Chief Financial
Officer of Tenant, both provided to Landlord, the Letter of Credit shall be
reduced by the sum equal to two (2) times the then current Monthly Fixed Rent;

 

(ii)           On the anniversary of
the Commencement Date for each year thereafter, provided that Tenant’s total
revenues for the immediately preceding calendar year exceed $700,000,000 and
Tenant’s EBITDA exceed $365,000,000, as evidenced by an audited financial
statement and a certification from the Chief Financial Officer of Tenant, both
provided to Landlord, the Letter of Credit shall be reduced by the sum equal to
two (2) times the then

 

25

 

current Monthly
Fixed Rent until such time as the Security Deposit equals six (6) times the
then current Monthly Fixed Rent. At no time shall the Security Deposit be
reduced below six (6) times the then current Monthly Fixed Rent.

 

21.           Inspection and Entry by Landlord.

 

(a)           At reasonable hours and
upon reasonable notice to Tenant, Tenant agrees to permit Landlord and Landlord’s
agents, employees or other representatives to show the Demised Premises to any
lessor under any underlying lease or ground lease or any mortgagee or any
persons wishing to rent or purchase the same. Tenant agrees that on and after
the ninth month next preceding the expiration of the term hereof, at reasonable
hours and upon reasonable notice to Tenant, Landlord or Landlord’s agents,
employees or other representatives shall have the right to show the Demised
Premises to any prospective tenant or to place notices on the front of the
Building or any part thereof, offering the Demised Premises for rent or for
sale; and Tenant hereby agrees to permit the same to remain thereon without
hindrance or molestation, provided that Landlord shall use its reasonable
efforts to avoid any disruption to the business of Tenant or its use and
enjoyment of the Demised Premises.

 

(b)           Tenant agrees that
Landlord and Landlord’s agents, employees or other representatives, shall have
the right to enter into and upon the said premises or any part thereof, at all
reasonable hours and upon reasonable notice (except in case of emergency), for
the purpose of examining the same or reading meters, or performing maintenance
or making such repairs or alterations therein as may be necessary for the
safety and preservation thereof, provided that Landlord shall (without
incurring overtime charges) use its reasonable efforts to avoid any disruption
to the business of Tenant or its use and enjoyment of the Demised Premises.
This clause shall not be deemed to be a covenant by Landlord nor be construed
to create an obligation on the part of Landlord to make such inspection or
repairs.

 

22.           Brokerage. Tenant and Landlord
warrant and represent to each other that neither has dealt with any broker or
brokers regarding the negotiation of the within Lease other than the Designated
Broker. Landlord shall pay the Designated Broker a commission pursuant to a
separate agreement. Tenant and Landlord agree to be responsible for and to
indemnify and save the other harmless from and against any claim for a
commission or other compensation by any broker other than the Designated Broker
claiming to have negotiated with the indemnifying party with respect to the
Demised Premises or to have called the said Demised Premises to Tenant’s
attention or to have called Tenant to Landlord’s attention. Landlord agrees to
indemnify and hold Tenant harmless from any claim made by the Designated Broker
for any commission in connection with this transaction.

 

23.           Parking. Tenant shall have the right
under this Lease to the exclusive use of the Reserved Spaces and the
non-exclusive use of the Non-Reserved Spaces in the parking lot of the Property
in compliance with such reasonable Rules and Regulations as Landlord may
promulgate from time to time. Landlord shall have the right to assign the
location of said parking spaces or may designate the location of same from time
to time. Tenant agrees not to overburden the parking lot by exceeding the
Tenant Allocated Parking Spaces as defined in Paragraph 13 of the Preamble.

 

26

 

24.           Renewal Option.

 

(a)           Tenant is hereby
granted two (2) options to renew this Lease for an additional term of five (5)
years each, subject to the terms of this Paragraph 24. In the event that Tenant
desires to renew the Lease it shall give notice in writing to Landlord of its
intention to renew the Lease at least twelve (12) months prior the Expiration
Date. All of the terms and conditions of this Lease shall remain in effect
during the Renewal Term, except that the annual Fixed Rent payable during the
Renewal Term shall be the annual fair market rental value of the Demised
Premises based on renewal lease for Class “A” office space in the Liberty
Corner/I-78 area of Somerset County (the “Fair Market Value”) as of the date
which is sixty (60) days prior to the commencement date of such Renewal Term,
but in no event shall the annual Fixed Rent be less than the annual Rent
payable during the year preceding the first year of the Renewal Term.

 

(b)           The Fair Market Value
of the Demised Premises for purposes of Subparagraph (a) of this Paragraph 24
shall take into account the provisions of this Lease and shall be set forth by
Landlord in a notice to Tenant at least sixty (60) days prior to the
commencement of the applicable renewal term. The Fair Market Value set forth in
such notice shall be binding upon both parties unless Tenant shall notify
Landlord of its objection within twenty (20) days after receipt of such notice.
In the event of such an objection which is not resolved within twenty (20) days
thereafter, Tenant, at its own expense, shall designate an MAI appraiser in the
Bernards Township/Bedminster area of Somerset County. Tenant’s designated
appraiser shall then determine and promptly report to both parties in writing
the Fair Market Value of the Demised Premises, which report shall be binding
upon both parties unless Landlord shall object to same within twenty (20) days
after receipt of said report. If Landlord shall so object, both parties shall
jointly appoint a separate MAI appraiser who shall determine the Fair Market
Value. The costs of such appraisal shall be shared equally by Landlord and
Tenant. If Landlord and Tenant cannot agree on an independent appraiser
acceptable to both, either party may request the American Arbitration
Association of Somerset, New Jersey to appoint such independent appraiser who
shall be a member of MAI familiar with office buildings in the Somerset County,
New Jersey area and in such event the judgment of a majority of the two
appraisers and Landlord shall be final and binding upon the parties.

 

(c)           It shall be a condition
of the exercise of the option set forth in this Paragraph 24, that at the time
of the exercise of said option, Tenant shall not be in default under this
Lease.

 

25.           Landlord’s Inability to Perform. This
Lease and the obligation of Tenant to pay the rent hereunder and to comply with
the covenants and conditions hereof, shall not be affected, curtailed, impaired
or excused because of the Landlord’s inability to supply any service or
material called for herein, by reason of any rule, order, regulation or
preemption by any governmental entity, authority, department, agency or
subdivision or for any delay which may arise by reason of negotiations for the
adjustment of any fire or other casualty loss or because of strikes or other
labor trouble or for any cause beyond the control of the Landlord.

 

26.           Condemnation. If (a) the Land,
Building and Demised Premises leased herein, or of which the Demised Premises
is a part, or any portion thereof, shall be taken under eminent domain or
condemnation proceedings, or (b) if suit or other action shall be instituted
for the

 

27

 

taking or
condemnation thereof, or (c) if in lieu of any formal condemnation proceedings
or actions, Landlord shall grant an option to purchase and or shall sell and
convey the Land, Building and the Demised Premises or any portion thereof, then
this Lease, at the option of Landlord shall terminate, and the term hereof
shall end as of such date as Landlord shall fix by notice in writing; and
Tenant shall have no claim or right to claim or be entitled to any portion of
any amount which may be awarded as damages or paid as the result of such
condemnation proceedings or paid as the purchase price for such option, sale or
conveyance in lieu of formal condemnation proceedings, other than moving or
relocation expenses or other damages which are the subject of an independent
claim and do not reduce Landlord’s award or an independent claim for its
furniture, fixtures and equipment (other than Tenant’s Work); and, subject to
the above, all rights of Tenant to damages, if any, are hereby assigned to
Landlord. Tenant agrees to execute and deliver any instruments, at the expense
of Landlord, as may be deemed necessary or required to expedite any
condemnation proceedings or to effectuate a proper transfer of title to such
governmental or other public authority, agency, body or public utility seeking
to take or acquire the Land, Building and Demised Premises or any portion
thereof. Tenant covenants and agrees to vacate the Demised Premises, remove all
Tenant’s personal property therefrom and deliver up peaceable possession
thereof to Landlord or to such other party designated by Landlord in the
aforementioned notice. Failure by Tenant to comply with any provision in this
clause shall subject Tenant to such costs, expenses, damages and losses as
Landlord may incur by reason of Tenant’s breach hereof.

 

27.           Assignment and Subletting.

 

(a)           In the event that
Tenant desires to assign or sublease the whole of the Demised Premises to any
other party the terms and conditions of such assignment or sublease shall be
communicated to Landlord in writing not less than thirty (30) days prior to the
effective date of any such assignment or sublease, and, prior to such effective
date, Landlord shall have the option, exercisable in writing to Tenant, to recapture
this Lease so that such prospective assignee or sublessee shall then become the
sole Tenant of Landlord hereunder or alternatively to recapture said space and
Tenant shall be fully released from any and all obligations hereunder. Within
thirty (30) days after such recapture has become effective, and provided Tenant
is not in default under this Lease, Landlord shall return to Tenant the
Security Deposit.

 

(b)           In the event that the
Landlord elects not to recapture the Lease as hereinabove provided, or in the
event that Tenant desires to assign or sublease less than the whole of the
Demised Premises, and provided that the terms and conditions of such assignment
or sublease shall be communicated to Landlord in writing no less than
forty-five (45) days prior to the effective date of such assignment or
sublease, Tenant may assign this Lease or sublet the whole or a portion of the
Demised Premises, subject to the Landlord’s prior written consent, which
consent shall not be unreasonably withheld, and subject to the consent of any
mortgagee, or ground lessor and on the basis of the following terms and
conditions:

 

(i)            Tenant
shall provide to Landlord the name and address of the assignee or sublessee.

 

28

 

(ii)           The assignee or
sublessee shall assume, by written instrument, all of the obligations of this
Lease, and a copy of such assumption agreement shall be furnished to Landlord
at least ten (10) days prior to the effective date of the assignment or sublease.

 

(iii)          Tenant and each assignee
or sublessee shall be and remain liable for the observance of all the covenants
and provisions of this Lease, including, but not limited to, the payment of
Fixed Rent, Additional Rent and other charges due hereunder through the entire
term of this Lease, as the same may be renewed, extended or otherwise modified.
In the case of a sublease for less than the entire Demised Premises, such
sublessee’s obligations hereunder shall be limited to its proportionate share.

 

(iv)          Tenant shall promptly
pay to Landlord fifty percent (50%) of any consideration other than rent
received for or in connection with any assignment or sublease, however
denominated, and fifty percent (50%) of all of the rent, as and when received,
in excess of the Fixed Rent required to be paid by Tenant for the area assigned
or sublet, after first deducting therefrom any reasonable and customary costs
or expenses paid by Tenant in connection with the assignment or sublease
(including brokerage commissions, reasonable attorney’s fees, build out
allowances (other than Tenant’s Work), free rent and other normal and customary
concessions).

 

(v)           In any event, the
acceptance by Landlord of any rent from any of the subtenants or the failure of
Landlord to insist upon a strict performance of any of the terms, conditions
and covenants herein from any assignee or subtenant shall not release Tenant
herein, from any and all of the obligations herein during and for the entire
terms of this Lease.

 

(vi)          Tenant shall only assign
or sublet the Demised Premises to an assignee or sublessee (1) whose financial
status is acceptable to Landlord, at Landlord’s reasonable discretion, which
denial shall be deemed to be unreasonable if such assignee or sublessee has a
net worth equal to or greater than that of Tenant, and (2) whose use is the
same use as Tenant’s use, the quality of tenant’s operations in the performance
of said use to be acceptable to Landlord, at Landlord’s reasonable discretion.

 

(vii)         Landlord shall require
One Thousand Five Hundred ($1,500) Dollars payment to cover its handling
charges for each request for consent to any assignment or sublet prior to its
consideration of the same. Tenant acknowledges that its sole remedy with
respect to any assertion that Landlord’s failure to consent to any assignment
or sublet is unreasonable shall be the remedy of specific performance and
Tenant shall have no other claim or cause of action against Landlord as a
result of Landlord’s actions in refusing to consent thereto.

 

(viii)        The assignment or sublease
shall provide that there shall be no further assignments and/or subletting
without Landlord’s consent.

 

(c)           Notwithstanding
anything contained in this Paragraph 27 to the contrary, Tenant shall have the
right to convert to a “C” corporation and such conversion shall not be deemed
to be an assignment or sublease under this Paragraph 27.

 

29

 

28.           Environmental Laws.

 

(a)           Tenant shall, at
Tenant’s own expense, comply with the Industrial Site Recovery Act, N.J.S.A.
13:1K-6 et  seq. and the regulations promulgated thereunder
(“ISRA”). Tenant shall, at Tenant’s own expense, make all submissions to,
provide all information to, and comply with all requirements of, the Bureau of
Industrial Site Evaluation (“the Bureau”) of the New Jersey Department of
Environmental Protection (“NJDEP”) as and when required under ISRA. Should the
Bureau or any other division of NJDEP determine that a cleanup plan be prepared
and that a cleanup be undertaken because of any spills or discharges or
hazardous substances or wastes which occur during the term of this Lease,
either:  (i) at the Property as a result
of Tenant’s actions or those of its employees, agents, licensees, invitees or
contractors, or (ii) at the Demised Premises regardless of whether resulting
from Tenant’s action or inaction or those of its employees, agents, licensees,
invitees or contractors, except to the extent that such spills or discharges
were the result of Landlord’s actions or inactions, or those of Landlord’s
employees, agents, licensees, invitees or contractors; then Tenant shall, at
Tenant’s own expense, prepare and submit the required plans and financial
assurances, and carry out the approved plans. At no expense to Landlord, Tenant
shall promptly provide all information requested by Landlord for preparation of
non-applicability affidavits and shall promptly sign such affidavits when
requested by Landlord. Tenant shall indemnify, defend and save harmless
Landlord from all fines, suits, procedures, claims and actions of any kind
arising out of or in any way connected with any spills or discharges of
hazardous substances or wastes which occur during the term of this Lease either
(i) at the Property as a result of Tenant’s actions or those of its employees,
agents, licensees, invitees or contractors, or (ii) at the Demised Premises
regardless of whether resulting from Tenant’s action or inaction or those of
its employees, agents, licensees, invitees or contractors, except to the extent
that such spills or discharges were the result of Landlord’s actions or
inactions, or those of Landlord’s employees, agents, licensees, invitees or
contractors; and Tenant shall indemnify, defend and save harmless Landlord from
all fines, suits, procedures, claims and actions of any kind arising out of
Tenant’s failure to provide all information, make all submissions and take all
actions required by the Bureau or any other division of NJDEP.

 

Landlord shall
indemnify, defend and save harmless Tenant from all fines, suits, procedures,
claims and actions of any kind arising out of or in any way connected with any
spills or discharges of hazardous substances or wastes at the Property except
those for which Tenant is responsible pursuant to this Paragraph 28; and from
all fines, suits, procedures, claims and actions of any kind except those
arising out of Tenant’s failure to provide all information, make all
submissions and take all actions required by the Bureau or any other division
of NJDEP provided, however, in no event shall Landlord be liable for any loss
of business, loss of profits, damage to business or business reputation, or any
consequential damages as a result of such spill or discharge. The obligations
and liabilities set forth in this paragraph shall survive termination of this
Lease. Tenant’s failure to abide by the terms of this paragraph shall be
restrainable or enforceable by injunction.

 

(b)           Tenant shall promptly
provide Landlord with all documentation and correspondence provided to NJDEP
with respect to the Demised Premises pursuant to the Worker and Community Right
to Know Act, N.J.S.A. 34:5A-1 et  seq. and the regulations
promulgated thereunder.

 

30

 

(c)           Tenant shall promptly
supply to Landlord, all reports and notices made by Tenant with respect to the
Property pursuant to the Hazardous Substance Discharge Reports and Notices Act,
N.J.S.A. 13:1K-15 et  seq. and the regulations promulgated
thereunder.

 

(d)           Tenant shall provide
Landlord with its Standard Industrial Classification number (including the
Major Group Number as designated in the Standard Industrial Classification
Manual prepared by the Office of Management and Budget in the Executive Office
of the President of the United States) with respect to its operations
associated with the Demised Premises. Tenant shall notify Landlord immediately
of any changes or anticipated changes in Tenant’s Standard Industrial
Classification number.

 

(e)           Tenant covenants and
agrees as follows with respect to all matters arising out of Tenant’s use of
the Demised Premises:

 

(i)            Not to use or permit
the use of the Demised Premises for the purpose of storing, refining,
producing, transferring, processing or transporting “Hazardous Substances” as
such term is defined in N.J.S.A. 58:10-23.11(b)(k) or N.J.S.A. 33:1 K-8;

 

(ii)           Not to use the Demised
Premises for the purpose of generating, manufacturing, storing, refining,
transporting, treating or disposing of “Hazardous Substances” or “Hazardous
Wastes” as such terms are defined in N.J.AC. 7:26B-l.3;

 

(iii)          Not to use the Demised
Premises in a manner that would, solely by virtue of such use by Tenant and not
due to the general nature of Tenant’s business, constitute the Demised
Premises, or the building wherein the Demised Premises are situated, or the
Tenant’s operations therein, an “Industrial Establishment” under N.J.S.A.
13:1K-6 et  seq.;

 

(iv)          To promptly cure any
violation by Tenant of any and all environmental laws or regulations upon
notification thereof;

 

(v)           Not to cause or permit
as a result of Tenant’s intentional or unintentional action or omission a
releasing, spilling, leaking, pumping, emitting, pouring, emptying or dumping
of a “Hazardous Substance”, as such term is defined in N.J.S.A. 58:10- 23.11
(b)(k) into waters or onto land of the State of New Jersey or onto lands or
into waters outside the jurisdiction of the State of New Jersey where damage
may result to the lands, waters, fish, shellfish, wildlife, biota, air or other
resources owned, managed, held in trust or otherwise controlled by the State of
New Jersey unless the release, spill, leak, pumping, emission, pouring,
emptying, or dumping is pursuant to and in compliance with the conditions of a
permit issued by the appropriate federal or state governmental authorities;

 

(vi)          Not to cause or permit
to exist, on or at the Demised Premises, as a result of an intentional or
unintentional act or omission, a “release” or “threat of release” of Hazardous
Substances as those terms are defined by the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C. §601 et  seq.

 

(vii)         Promptly clean up the
results of any use, act or omission in violation of the provisions of Paragraph
28 in compliance with all governmental laws and

 

31

 

regulations
applicable thereto and obtain such certifications or proof of cleanup as may be
required by the appropriate governmental authorities, Landlord, and Landlord’s
mortgagee;

 

(viii)        Upon the expiration or
earlier termination of this Lease, Tenant covenants and agrees to apply at its
own expense for a letter of nonapplicability with respect to the Demised
Premises from and on the form provided by NJDEP upon request by the Landlord.
In the event Tenant is unable to receive a letter of non-applicability with
respect to the Demised Premises, Tenant shall obtain from the NJDEP an approved
negative declaration or implement and complete an approved cleanup plan for the
premises, all at Tenant’s cost and expense.

 

(ix)           In the event the Lease
is terminated for any reason, and Landlord is unable to use or lease the
Demised Premises because Tenant has not obtained from the NJDEP a letter of
non-applicability, an approved negative declaration or implemented and
completed an approved cleanup plan or otherwise failed to comply with ISRA,
then at Landlord’s option, (a) Tenant shall continue to pay rent and all
additional rent until same is complied with or completed, as the case may be,
or (b) Tenant shall be deemed a holdover tenant subject to the provisions of
N.J.S.A. 2A:42-6 and pay double the monthly rent paid as of the Last month of
the term until Tenant has complied with ISRA. However, Tenant shall have no
right to possession of the Demised Premises except to facilitate the requirements
contained herein.

 

The foregoing
covenants in this Paragraph 28(e)(i), (ii) and (vi) shall not apply to, and
Tenant shall be permitted to use and store, substances customarily used in
general administrative offices in the normal course of business, such as
copying machines and other office equipment, maintenance and cleaning materials
all in accordance with applicable laws, orders and regulations.

 

(f)            Tenant shall promptly
supply Landlord with any notices, correspondence and submissions made by Tenant
with respect to the Property to NJDEP, the United States Environmental
Protection Agency (“EPA”), the United States Occupational Safety and Health
Administration (“OSHA”), or any other local, state or federal authority which
requires submission of any information concerning environmental matters or
hazardous wastes or substances.

 

(g)           Tenant shall promptly
execute and deliver to Landlord and NJDEP any submissions requested by Landlord
with respect to ISRA applicable to the Demised Premises or the Property at
least three (3) months prior to the expiration of the Term of this Lease.

 

(h)           Landlord represents
that, to its knowledge, there are no toxic or environmental conditions at the
Building or the Demised Premises which require remediation under any existing
environmental laws of any governmental instrumentalities having jurisdiction
thereof.

 

29.           Parties Bound.

 

(a)           The covenants,
agreements, terms, provisions and conditions of this Lease shall bind and
benefit the respective successors, assigns and legal representatives of the
parties hereto, with the same effect as if mentioned in each instance where a
party hereto is named or referred to except that no violation of the provisions
of Paragraph 7(c) hereof shall operate to

 

32

 

vest any
rights in any successor, assignee or legal representative of Tenant and that
the provisions of this Paragraph 29 shall not be construed as modifying the
conditions contained in Paragraph 13 hereof.

 

(b)           Tenant acknowledges and
agrees that if Landlord shall be an individual, joint venture, tenancy in
common, firm, or partnership, general or limited, there shall be no personal
liability on such individual or on the members of such joint venture, tenancy
in common, firm or partnership in respect of any other covenants or conditions
of this Lease; rather, Tenant agrees to look solely to Landlord’s estate and
property in the Property (or the proceeds thereof) for the satisfaction of
Tenant’s remedies arising out of or related to this Lease.

 

(c)           The term “Landlord” as
used in this Lease means only the owner, or the mortgagee in possession, for
the time being of the Demised Premises (or the owner of a lease of the Demised
Premises) so that in the event of any sale or sales of the Land, Building, or
the Demised Premises or of said lease, or in the event of a lease of the Land,
Building or of the Demised Premises, the said Landlord shall be and hereby is
entirely freed and relieved of all covenants and obligations of Landlord
hereunder, and it shall be deemed and construed without further agreement
between the parties or their successors in interest, or between the parties and
the purchaser, at any such sale, or the said lessee of the Land, Building or of
the Demised Premises, that the purchaser or the lessee of the same has assumed
and agreed to carry out any and all covenants and obligations of Landlord
hereunder.

 

30.           Miscellaneous.

 

(a)           This Lease contains the
entire contract between the parties. No representative, agent or employee of
Landlord has been authorized to make any representations or promises with
reference to the leasing of the Demised Premises or to vary, alter or modify
the terms hereof. No additions, changes or modifications, renewals, or
extensions hereof, shall be binding unless reduced to writing and signed by
Landlord and Tenant.

 

(b)           The terms, conditions,
covenants and provisions of this Lease shall be deemed to be severable. If any
clause or provision herein contained be adjudged to be invalid or unenforceable
by a court of competent jurisdiction or by operation of any applicable law, it
shall not affect the validity of any other clause or provision herein, but such
other clauses or provisions shall remain in full force and effect.

 

(c)           Tenant shall not be
entitled to exercise any right of termination or other option granted to it by
this Lease at any time when Tenant is in default in the performance or
observance of any of the covenants, agreement terms, provisions or conditions
on its part to be performed or observed under this Lease.

 

(d)           The paragraph headings
in this Lease are for convenience only and are not to be considered in
construing the same.

 

31.           Satellite/Antenna. As used in
Paragraph 31, the following terms shall have the respective meanings set forth
below:

 

33

 

“Approved Satellite Dish” means the type of
non-penetrating satellite dish and antenna approved by Landlord in writing,
which approved shall not be unreasonably withheld.

 

“Approved Use” means the use of the Approved
Satellite Dish by Tenant for the sole purpose of receiving communications from
other domestic and international offices of Tenant provided the receipt of such
communications is in compliance with all applicable laws, and for no other purpose.

 

(a)           Tenant shall have the
right to install, maintain and operate the Approved Satellite Dish on a portion
of the roof of the Building designated by Landlord in writing during the term
of this Lease provided that the following terms and conditions shall have been
timely satisfied:

 

(i)            Tenant shall not be in
default of any of its obligations under this Lease, and no event shall occur,
which with the passing of time or the giving of notice or both, would
constitute a default under this Lease;

 

(ii)           Tenant only shall have
the right to use the Approved Satellite Dish, and Tenant shall use the Approved
Satellite Dish for the Approved Use only;

 

(iii)          Tenant shall, at its
sole cost and expense, install, maintain and operate the Approved Satellite
Dish and any applicable equipment, materials, lines, cables and conduits in
accordance with all applicable laws, rules, regulations and requirements of any
governmental or quasi-governmental authority having or asserting jurisdiction;
provided, however, Tenant shall have no right to do any drilling into the roof
without the prior written consent of Landlord, which consent may be given or
withheld in Landlord’s sole discretion;

 

(iv)          Tenant shall comply with
all of the terms and conditions of Paragraph 6 of this Lease including, without
limitation, the procuring of all permits, licenses, approval and certificates
required by any governmental or quasi-governmental authority, and the
installation of the Approved Satellite Dish for purposes of Paragraph 6 shall
be deemed to be an alteration as set forth in Paragraph 6.

 

(v)           Tenant shall, at its
sole cost and expense, maintain any and all insurance coverage relating to the
installation, maintenance and operation of the Approved satellite dish as may
be reasonably required from time to time by Landlord;

 

(vi)          Tenant shall, at its
sole cost and expense, promptly repair any damage to the Building (including
the roof) caused by the installation, maintenance and operation of the Approved
Satellite Dish;

 

(vii)         The Approved Satellite
Dish shall not interfere with (a) the use of other antennae or communications
dishes on the roof of the Building, (b) any other installations on the roof of
the Building and/or (c) any type of communications equipment or services
(wherever located) of any tenant, occupant, licensee or invitee of the
Building; and

 

(viii)        Tenant shall have no right
to use the Approved Satellite Dish to generate any type of income without the
prior written consent of Landlord, which Consent may

 

34

 

be given or
withheld in Landlord’s sole discretion; provided, however, Tenant shall have
the right to use the Approved Satellite Dish to receive internal Tenant
channels relating to financial services and financial markets.

 

(b)           Tenant shall have
reasonable access rights to the roof of the Building as is reasonably necessary
for the installation, maintenance, operation and removal of the Approved
Satellite Dish; provided, however, the time, manner and method of such access
(a) shall be subject to the prior reasonable approval of Landlord and (b) shall
not interfere with the occupancy or business of any other tenant, occupant,
licensee or invitee of the Building.

 

(c)           Landlord shall have the
right, at any time and at Tenant’s sole cost and expense, to relocate, or
require Tenant to relocate, the Approved Satellite Dish (and any applicable
equipment, materials, lines, cables or conduits) to such other location on the
roof of the Building as may be selected by Landlord, provided that Tenant’s use
and enjoyment of such dish shall not be materially altered or diminished.

 

(d)           Landlord shall have the
right to require Tenant to temporarily cease operating the Approved Satellite
Dish and/or relocate the approved Satellite Dish on the roof of the Building in
order to allow Landlord or its designee to make any necessary or required
repairs or alterations on or to the roof of the Building as determined by
Landlord in its sole discretion.

 

(e)           In the event Tenant
fails to comply with any term, covenant, provision or condition set forth in
this Paragraph 31, such failure shall be an event of default under this Lease
and Landlord shall have, in addition to but not in limitation of, all of the
rights and remedies available to it under this Lease, the right (i) to
terminate Tenant’s right to use the Approved Satellite Dish and (ii) remove, or
require Tenant to remove, at Tenant’s sole cost and expense, the Approved
Satellite Dish and any applicable equipment, materials, lines, cables and
conduits.

 

(f)            Tenant hereby
indemnifies, defends and holds Landlord and Landlord’s officers, directors,
shareholders and employees harmless from and against any claim, loss, damage,
cost, expense, obligation, suit, lien and liability including, without
limitation, attorneys’ fees and disbursements, arising out of or incurred in
connection with the installation, maintenance, operation and removal of the
Approved Satellite Dish.

 

32.           Right of Second Offer. Subject to the
rights of any existing tenants of the Building, if 10,000 square feet or more
of contiguous space on the first floor of the Building (the “Additional Space”)
shall become available at any time during the Initial Term, Landlord shall,
prior to offering to lease the Additional Space to any person or entity other
than existing tenants of the Building that have a superior right of first
offer, offer in writing (the “Lease Offering Notice”), to lease the Additional
Space to Tenant for a rental hereafter described and upon such terms which, in
Landlord’s good faith judgment, Landlord will attempt to lease the Additional
Space to others; such rental being equal to the greater of (i) the Fair Market
Rental therefor (as provided in Paragraph 24 above) or (ii) the escalated Rent
for the Premises as determined in Paragraph 2 hereof. Tenant shall then have a
period of ten (10) business days (the “Lease Election Period”) within which to
elect to lease the Additional Space covered by the Lease Offer Notice on the
terms set forth in the Offer Notice and to enter into a lease incorporating
such terms with Landlord (the “Other Lease”), with time being of the essence.
Landlord’s obligation

 

35

 

to offer the
Additional Space to Tenant shall be strictly conditioned and Tenant shall have
no rights whatsoever with respect thereof or otherwise under this Paragraph 32
unless, no event of default exists under this Lease at the time of Tenant’s
receipt of the Lease Offering Notice and Tenant’s election to lease the Other
Premises. If Tenant does not make the aforesaid election or does not execute
and deliver the Other Lease within the Lease Election Period, Landlord shall
have the right to lease the Other Premises covered by the Lease Offer Notice to
any other person or entity, on substantially the same monetary terms offered to
Tenant or on any other terms less favorable than those offered to Tenant and
Landlord shall have no further obligation under this Lease to notify Tenant
should any other space on the first floor become available during the Term.

 

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

 

	
  ATTEST:

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  OP & F BERNARDS –
  78, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RELIANT
  PHARMACEUTICALS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  

 

36

 

EXHIBIT “A”

 

FLOOR PLAN OF DEMISED PREMISES

 

A-1

 

EXHIBIT
“A”

 

FLOOR PLAN OF DEMISED
AREA

 

 

A-2

 

EXHIBIT “A-1”

 

DESCRIPTION OF LAND

 

A-3

 

Legal Description

 

	
  The Property Commonly
  Known as:

  	
   

  	
  110 Allen Road

  
	
   

  	
   

  	
  Bernardsville, New
  Jersey

  
	
   

  	
   

  	
  Block number 177

  
	
   

  	
   

  	
  Lot number 4.01

  

 

More particularly described
as follows:

 

Beginning at a
point in the middle of the bridge over the Dead River in Allen road, thence
leaving said Allen Road the following fourteen courses running in and along
said Dead River

 

1.               South 73° 33’ 10”
East, 57.52 feet to a point, thence

 

2.               South 69° 41’ East,
200.20 feet to a point, thence,

 

3.               South 63° 09’ 41”
East, 101.29 feet to a point, thence

 

4.               South 73° 24’ 40”
East, 100.02 feet to a point, thence

 

5.               South 81° 46’ 40”
East, 77.23 feet to a point, thence

 

6.               South 45° 28’ 40”
East, 98.59 feet to a point, thence

 

7.               South 22° 07’ 10”
East, 96.69 feet to a point, thence

 

8.               South 47° 54’ 10”
East, 57.10 feet to a point, thence

 

9.               South 85° 40’ 40”
East, 130.64 feet to a point, thence

 

10.         North 68° 36’ 20” East,
16.81 feet to a point, thence

 

11.         North 37° 10’ 20” East,
65.22 feet to a point, thence

 

12.         North 31° 13’ 20” East
60.38 feet to a point, thence

 

13.         South 18° 13’ 01” West,
26.83 feet to a point, thence

 

14.         South 16° 06’ 06” West,
45.76 feet to a point, thence

 

15.         leaving said river and
running along Tax Map Lot 27, south 66° 06’ 45” East, 156.41 feet to a point,
thence

 

16.         South 6° 47’ 15” West,
1363.56 feet to a point in the northerly right of way line of New Jersey State
Highway Route 78, thence the following three courses running along northerly
right of way of Route 78

 

17.         North 82° 38’ 28” West,
264.53 feet to a point marked by a stake, thence

 

 

18.         South 82° 46’ 59” West,
200.32 feet to a point marked by a concrete monument, thence

 

19.         South 77° 21’ 28” West,
292.41 feet to a point, thence leaving said northerly right of way of Route 78
the following three courses running along Tax Map Lot 7,

 

20.         North 50° 5’ 51” West,
1200.03 feet to a point marked by a nail at the end of rock row, thence

 

21.         North 29° 34’ 09” East,
787.45 feet to a point marked by an iron pipe, thence

 

22.         North 31° 20’ West, 62.22
feet to a point in the middle of Allen Road, thence the following eleven
courses running in the centerline of said Allen Road

 

23.         North 56° 38’ 14” East,
105.55 feet to a point, thence

 

24.         North 61° 11’ 43” East,
75.29 feet to a point, thence

 

25.         North 73° 53’ 44” East,
58.48 feet to a point, thence

 

26.         North 83° 06’ 54” East,
79.55 feet to a point, thence

 

27.         North 81° 59’ 13” East,
66.96 feet to a point, thence

 

28.         North 69° 06’ 18” East,
61.86 feet to a point, thence

 

29.         North 62° 06’ 12” East,
72.41 feet to a point, thence

 

30.         North 41° 44’ 53” East,
57.70 feet to a point, thence

 

31.         North 15° 51’ 55’ East,
58.27 feet to a point, thence

 

32.         North 0° 49’ 41” East,
61.13 feet to a point, thence

 

33.         North 10° 29’ 01” East,
53.08 feet to the point and place of beginning

 

Subject to a 150-foot wide
right of way granted Public Service electric and Gas Company which was recorded
Somerset County Dee Book Y-21, Page 1.

 

Subject to a 30 foot wide right
of way granted to Transcontinental Gas Pipeline Corporation which was recorded
in Somerset County Deed Book 939, Page 314.

 

Subject to a 40 foot wide right
of way granted to New Jersey Power and Light Company which was recorded in
Somerset County Deed Book 1228, page 561.

 

Subject to the rights of the
public in and along Allen Road.

 

Subject to easements and
restrictions of record.

 

 

This description was prepared
by Apgar Associates, Engineers, Land Surveyors and Planners, Far Hills, New
Jersey and based on a survey dated June 23, 1983 by Apgar Associates.

 

 

EXHIBIT “B”

 

WORK LETTER TO LEASE

Between 

OP & F BERNARDS – 78, LLC 

and 

RELIANT PHARMACEUTICALS, LLC

 

Section 1.               The provisions of this Exhibit shall
have the same force and effect as if this Exhibit were a numbered Article of
the Lease.

 

Section 2.               Tenant shall deliver to Landlord plans
for the construction of the Demised Premises (the “Construction Plans”). Within
ten (10) business days after receipt of the Construction Plans, Landlord shall
approve or reject same and if rejecting same shall state the reasons for such
rejection.

 

Section 3.               In order to finalize the Construction
Plans or in the event that Tenant desires any change in the Construction Plans
before finalization, Tenant shall submit to Landlord, proposed final plans
setting forth the finalization of the Construction Plans including any proposed
change therein. Within ten (10) business days after receipt of any proposed
finalization (with or without changes) of the Construction Plans from Tenant,
Landlord shall approve or reject same and if rejecting same shall state the
reasons for such rejection. In the event of a rejection by Landlord of any
proposed final plans, Tenant may make changes to the proposed final plans and
resubmit them pursuant hereto. Upon receiving Landlord’s approval to any
proposed final plans, such plans shall become the Final Plans (the “Final
Plans”) hereunder and shall be delivered to Landlord within three (3) business
days of such approval. No plans submitted to Landlord shall be considered to be
Final Plans unless they are submitted to Landlord signed and sealed and in
proper and sufficient form for Tenant to obtain all necessary permits and
approvals to construct the Demised Premises in accordance with such Final
Plans.

 

Section 4.               Tenant agrees to construct the Demised
Premises substantially in accordance with Final Plans, which construction shall
be completed in a good and workmanlike manner and in compliance with all
applicable laws and regulations.

 

Section 5.               Landlord shall pay to Tenant, in
accordance with the terms hereof, a tenant improvement allowance of Fifteen
Dollars ($15.00) per rentable square foot of the Demised Premises (“Tenant
Improvement Allowance”) against which Landlord shall be entitled to a credit
equal to three and one/half percent (3.5%) of the total “Construction Cost” (as
defined in section 8 hereof), as a construction management fee (“Construction
Management Fee”). Tenant agrees that no more than Five Dollars ($5.00) per
rentable square foot of the Demised Premises of Tenant Improvement Allowance
may be applied to the cost of wiring and “soft costs” such as architect,
engineering and permitting fees. Tenant shall have a period of one (1) year
from the Commencement Date to complete Tenant’s work and submit to Landlord the
voucher (as defined in Section 6(i) below).

 

Section 6.               The Tenant Improvement Allowance shall
be disbursed by Landlord to Tenant as follows:

 

B-1

 

(i)            Tenant shall deliver to Landlord an
approved requisition certified by the contractor having performed such work and
requesting payment, and by the Tenant’s architect on standard AIA requisition
forms (collectively, the “Voucher”).

 

(ii)           Landlord shall have received a certification
of the authorized representative of Tenant that Tenant has inspected and
approved all work and has unconditionally authorized the disbursement of that
portion of the Tenant Improvement Allowance as set forth in the Voucher; that
the work done and the materials supplied to date are in accordance with the
Final Plans; that the work and materials for which payment is requested have
been physically incorporated into the Demised Premises and that its value is as
stated; that such work and materials conform with all applicable rules and
regulations of the public authorities having jurisdiction over the Building;
and that payment for the work or materials described in such Voucher has been
made or will be made with the proceeds of the advance in connection with which
the Voucher is submitted. In the event Landlord shall contest Tenant’s Voucher,
representatives of Landlord and Tenant shall meet within five (5) days of
Landlord’s notice of objection, and make payment within fifteen (15) days of
the resolution thereof.

 

(iii)          Within ten (10) business days after
submission by Tenant to Landlord of the above documentation, Landlord shall pay
to Tenant ninety percent (90%) of the amount requested in the Voucher, less a
retainage of ten percent (10%) (the “Retainage”), provided that in no event
shall the aggregate amount to be paid by Landlord exceed Tenant’s Allowance.
The Voucher may only be submitted to Landlord for payment upon substantial
completion of Tenant’s Work. Landlord shall pay Tenant the Retainage within
fifteen (15) days after receipt of a certificate of occupancy (temporary or
final) by appropriate governmental authority permitting occupancy of the
Demised Premises for the purposes set forth in this Lease and receipt of a
waiver and release of mechanics liens from each of the general contractor,
subcontractors and materialmen who provided services and materials in
connection with Tenant’s Work.

 

Section 7.               Tenant shall bid all contracts and
subcontracts in connection with Tenant’s Work (including cosmetic work) with
the Landlord. If Landlord is not the successful bidder on the contract or
subcontract work, Tenant’s Work (including cosmetic work) shall be performed by
contractors, subcontractors or mechanics reasonably approved by Landlord.

 

Section 8.               The “Construction Cost” as defined
herein shall be the actual cost, including out-of-pocket soft costs, for the
construction of the Demised Premises in accordance with the Final Plans.

 

Section 9.               Tenant shall deliver, within 30 days
after substantial completion of Tenant’s Work, as-built plans and
specifications of the Premises reflecting Tenant’s Work which are suitable for
computer scanning by Landlord. In addition, if such as-built plans and
specifications are prepared for the Tenant by the Tenant’s architect or
engineer on an Autocad Computer Assisted Drafting and Design (“CADD”) System
(or other computer system(s)), Tenant shall also deliver magnetic computer
media or CD-ROM of such “as-built” drawings and specifications to Landlord.

 

B-2

 

EXHIBIT “C”

 

RULES AND REGULATIONS

 

1.                                       No
sign, placard, picture, advertisement, name or notice shall be installed or
displayed on any part of the exterior or interior Common Areas of the Building
without the prior written consent of Landlord. Landlord shall have the right to
remove, at Tenant’s expense and without notice, any sign installed or displayed
in violation of this rule. All approved signs or Lettering on doors and walls
shall be printed, painted, affixed or inscribed at the expense of Tenant by a
person chosen by Landlord.

 

2.                                       No
awning shall be permitted on any part of the Demised Premises. Tenant shall not
place anything against or near glass partitions or doors or windows which may
appear unsightly from outside the Demised Premises.

 

3.                                       Landlord
shall retain the right to control and prevent access to the Building of all
persons whose presence in the judgment of Landlord would be prejudicial to the
safety, character, reputation and interests of the Building and its tenants;
provided that nothing herein contained shall be construed to prevent such
access to persons with whom any tenant normally deals in the ordinary course of
its business, unless such persons are engaged in illegal activities. No tenant
and no employee or invitee of any tenant shall go upon the roof of the
Building.

 

4.                                       All
cleaning and janitorial services for the Building and the Demised Premises
shall be provided exclusively through Landlord, and except with the written
consent of Landlord, no person or persons other than those approved by Landlord
shall be employed by Tenant or permitted to enter the Building for the purpose
of cleaning the same. Tenant shall not cause any unnecessary labor by carelessness
or indifference to the good order and cleanliness of the Demised Premises.
Landlord shall not in any way be responsible to any Tenant for any loss of
property on the Demised Premises, however occurring, or for any damage to any
Tenant’s property by the janitor or any other employee or any other person.

 

5.                                       Landlord
will furnish Tenant, free of charge, a reasonable number of keys to each door
lock in the Demised Premises. Landlord may charge a reasonable amount for any
additional keys requested by Tenant. Tenant shall not alter any lock or install
a new additional lock or bolt on the entrance door of its Demised Premises.
Tenant, upon the termination of its tenancy, shall deliver to Landlord the keys
of all doors which have been furnished to Tenant, and in the event of loss of
any keys so furnished, shall pay Landlord therefor.

 

6.                                       If
Tenant requires telegraphic, telephonic, burglar alarm or similar services, it
shall first obtain, and comply with, Landlord’s instructions in their
installation.

 

7.                                       Any
freight elevator shall be available for use by all tenants in the Building,
subject to such reasonable scheduling as Landlord in its discretion shall deem
appropriate. No equipment, materials, furniture, packages, supplies,
merchandise or other property will be 

 

C-1

 

received in
the Building or carried in the elevators except between such hours and in such
elevators as may be designated by Landlord.

 

8.                                       Tenant
shall not place a load upon any floor of the Demised Premises which exceeds the
load per square foot which such floor was designed to carry and which is
allowed by law. Landlord shall have the right to prescribe the weight, size and
position of all equipment, materials, furniture or other property brought into
the Building. Heavy objects shall, if considered necessary by Landlord, stand
on such platforms as determined by Landlord to be necessary to properly
distribute the weight. Business machines and mechanical equipment belonging to
Tenant, which cause noise or vibration that may be transmitted to the structure
of the Building or to any space therein to such a degree as to be objectionable
to Landlord or to any tenants in the Building, shall be placed and maintained
by Tenant, at Tenant’s expense, on vibration eliminators or other devices
sufficient to eliminate noise or vibration. The persons employed to move such
equipment in or out of the Building must be acceptable to Landlord. Landlord
will not be responsible for loss of, or damage to, any such equipment or other
property from any cause, and all damage done to the Building by maintaining or
moving such equipment or other property shall be repaired at the expense of
Tenant.

 

9.                                       Tenant
shall not use or keep in the Demised Premises any kerosene, gasoline or
inflammable or combustible fluid or material other than those limited
quantities necessary for the operation or maintenance of office equipment.
Tenant shall not use or permit to be used in the Demised Premises any foul or
noxious gas or substance, or permit or allow the Demised Premises to be
occupied or used in a manner offensive or objectionable to Landlord or other
occupants of the Building by reason of noise, odors or vibrations, nor shall
Tenant bring into or keep in or about the Demised Premises any birds or
animals.

 

10.                                 Tenant
shall not use any method of heating or air conditioning other than that
supplied by Landlord.

 

11.                                 Tenant
shall cooperate fully with Landlord to assure the most effective operation of
the Building’s heating and air-conditioning and to comply with any governmental
energy-saving rules, laws or regulations of which Tenant has actual notice, and
shall refrain from attempting to adjust controls other than room thermostats
installed for Tenant’s use. Tenant shall keep corridor doors closed, and shall
close window coverings at the end of each business day.

 

12.                                 Landlord
reserves the right, exercisable without notice and without liability to Tenant,
to change the name and street address of the Building.

 

13.                                 Landlord
reserves the right to exclude from the Building between the hours of 6 p.m. and
8 a.m. the following day, or such other hours as may be established from time
to time by Landlord, and on Sundays and legal holidays, any person unless that
person is known to the person or employee in charge of the Building and has a
pass or is properly identified. Tenant shall be responsible for all persons for
whom it requests passes and shall be liable to Landlord for all acts of such
persons. Landlord shall not be liable for damages for any

 

C-2

 

error with
regard to the admission to or exclusion from the Building of any person.
Landlord reserves the right to prevent access to the Building in case of
invasion, mob, riot, public excitement or other commotion by closing the doors
or by other appropriate action.

 

14.                                 Tenant
shall close and lock the doors of the Demised Premises and entirely shut off
all water faucets or other water apparatus, and electricity, gas or air outlets
before tenant and its employees leave the Demised Premises. Tenant shall be
responsible for any damage or injuries sustained by other tenants or occupants
of the Building or by Landlord for noncompliance with this rule.

 

15.                                 Tenant
shall not obtain for use on the Demised Premises ice, drinking water, food,
beverage, towel or other similar services or accept barbering or bootblacking
services upon the Demised Premises, except at such hours and under such
regulations as may be fixed by Landlord.

 

16.                                 The
toilet rooms, toilets, urinals, wash bowls and other apparatus shall not be
used for any purpose other than that for which they were constructed and no
foreign substance of any kind whatsoever shall be thrown thereto. The expense
of any breakage, stoppage or damage resulting from the violation of this rule
shall be borne by the tenant who, or whose employees or invitees shall have
caused it.

 

17.                                 Tenant
shall not sell, or permit the sale at retail, of newspapers, magazines,
periodicals, theater tickets or any other goods or merchandise to the general
public in or on the Demised Premises. Tenant shall not make any room-to-room
solicitation of business from other tenants in the Building.

 

18.                                 Tenant
shall not install any radio or television antenna, loudspeaker or other device
on the roof or exterior walls of the Building. Tenant shall not interfere with
radio or television broadcasting or reception from or in the Building or
elsewhere.

 

19.                                 Tenant
shall not mark, drive nails, screw or drill into the partitions, woodwork or
plaster or in any way deface the Demised Premises or any part thereof. Landlord
reserves the right to direct electricians as to where and how telephone and
telegraph wires are to be introduced to the Demised Premises. Tenant shall not
cut or bore holes for wires. Tenant shall not affix any floor covering to the
floor of the Demised Premises in any manner except as approved by Landlord.
Tenant shall repair any damage resulting from noncompliance with this rule.

 

20.                                 Tenant
shall not install, maintain or operate upon the Demised Premises any vending
machine without the written consent of Landlord.

 

21.                                 Canvassing,
soliciting and distribution of handbills or any other written material, and
peddling in the Building are prohibited, and each tenant shall cooperate to
prevent same.

 

22.                                 Landlord
reserves the right to exclude or expel from the Building any person who, in
Landlord’s judgment, is intoxicated or under the influence of liquor or drugs
or who is in violation of any of the Rules and Regulations of the Building.

 

C-3

 

23.                                 Tenant
shall store all its trash and garbage within the Demised Premises. Tenant shall
not place in any trash box or receptacle any material which cannot be disposed
of in the ordinary and customary manner of trash and garbage disposal. All
garbage and refuse disposal shall be made in accordance with directions issued
from time to time by Landlord.

 

24.                                 The
Demised Premises shall not be used for the storage of merchandise held for sale
to the general public, or for lodging or for manufacturing of any kind, nor
shall the Demised Premises be used for any improper, immoral or objectional
purpose. No cooking shall be done or permitted by any tenant on the Demised
Premises, except that use by Tenant of Underwriters’ Laboratory-approved
equipment for brewing coffee, tea, hot chocolate and similar beverages shall be
permitted, provided that such equipment and use is in accordance with all
applicable federal, state, county and city laws, codes, ordinances, rules and
regulations.

 

25.                                 Tenant
shall not use in any space or in the public halls of the Building any hand
trucks except those equipped with rubber tires and side guards or such other
material-handling equipment as Landlord may approve. Tenant shall not bring any
other vehicles of any kind into the Building.

 

26.                                 Without
the written consent of Landlord, Tenant shall not use the name of the Building
in connection with or in promoting or advertising the business of Tenant except
as Tenant’s address.

 

27.                                 Tenant
shall comply with all safety fire protection and evacuation procedures and
regulations established by Landlord or any governmental agency.

 

28.                                 Tenant
assumes any and all responsibility for protecting the Demised Premises from
theft, robbery and pilferage.

 

29.                                 The
requirements of Tenant will be attended to only upon written application to the
office of the Building Manager by an authorized individual.

 

30.                                 Tenant
shall not park its vehicles in any parking areas designated by Landlord as
areas for parking by visitors to the Building. Tenant shall not leave vehicles
in the Building parking areas overnight.

 

31.                                 Landlord
may waive any one or more of these Rules and Regulations for the benefit of
Tenant or any other tenant, but no such waiver by Landlord shall be construed
as a waiver of such Rules and Regulations in favor of Tenant or any other
tenant, nor prevent Landlord from thereafter enforcing any such Rules and
Regulations against any or all of the tenants of the Building.

 

32.                                 These
Rules and Regulations are in addition to, and shall not be construed to in any
way modify or amend, in whole or in part, the terms, covenants, agreements and
conditions of any lease of premises in the Building. In the event of conflict
between the provisions contained in this Lease and these Rules and Regulations
the provisions of this Lease shall prevail.

 

C-4

 

33.                                 Landlord
reserves the right to make such other and reasonable Rules and Regulations as,
in its judgment, may from time to time be needed for safety and security, for
care and cleanliness of the Building and for the preservation of good order
therein. Tenant agrees to abide by all such Rules and Regulations hereinabove
stated and any additional rules and regulations which are adopted.

 

34.                                 Tenant
shall be responsible for the observance of all of the foregoing rules by
Tenant’s employees, agents, clients, customers, invitees and guests.

 

C-5

 

EXHIBIT “D”

 

BUILDING HOLIDAYS

 

Building
Holidays shall be President’s Day; Good Friday; Memorial Day; Independence Day;
Labor Day; Thanksgiving Day and day after; Christmas Day; New Years Day; Monday
before or Friday after if Christmas Day, New Years Day or Independence Day fall
on Tuesday or Thursday; and Monday after or Friday before if Christmas Day, New
Years Day or Independence Day fall on Saturday or Sunday.

 

D-1

 

EXHIBIT E

 

CLEANING SERVICES

 

1.             General Cleaning:

 

Nightly

 

a.                                       Empty and clean
all waste receptacles removing waste to a designated central location for
disposal. Landlord is to provide for disposal of waste.

 

b.                                      Empty and clean
all ash trays and receptacles.

 

c.                                       Remove all
fingerprints, smudges and other marks from metal partitions, doors and other
surfaces.

 

d.                                      With respect to a
kitchen area (if applicable) rinse out coffee pots, turn off burners to coffee
pots, spot clean walls for coffee spillage, clean sink, and clean tables and
chairs in such area.

 

Weekly

 

e.                                       Hand dust and
clean all office furniture that has been cleared of papers, boxes, and/or
personal items, ledges, chair rails, baseboards, and window sills.

 

2.             Floors

 

Group
A-Granite, ceramic tile, marble, terrazzo.

 

Group B-Linotile, asphalt, koroseal, plastic
vinyl, wood, rubber, or other composition floors and base.

 

Nightly

 

a.                                       All floors in
Group A to be swept, wet mopped and rinsed.

 

b.                                      All floors in
Group B to be dry mopped.

 

Weekly

 

c.             All floors in Group B
to be damp mopped.

 

Every six (6)
months

 

d.             All floors to be
scrubbed and buffed.

 

E-1

 

3.             Vacuuming

 

Nightly

 

a.             Vacuum or carpet
sweep all rugs and carpeted areas.

 

Monthly

 

b.                                      Brush or dust by
hand carpet edges inaccessible to high pressure vacuum attachments.

 

4.             High Dusting

 

Every six (6)
months

 

a.                                       Dust all clothes
closet shelving, pictures, charts, graphs, etc.

 

b.                                      Dust clean all
vertical surfaces such as walls, partitions, door bucks and other surfaces.

 

c.                                       Dust all venetian blinds.

 

5.             Special Service

 

Records and
General Storage Area

 

Floors are to be broom cleaned weekly. Files
and exposed open shelves dusted once every three (3) months.

 

6.             Other Services

 

a.                                       Landlord shall
supply all soap, towels, and toilet tissue in both men’s and women’s rooms and
sanitary napkins in coin dispensers in the women’s rooms.

 

b.                                      Landlord will
supply all coin operated dispensers and will be responsible for the servicing
of same and for the collection of money from the machine.

 

c.                                       During the term
of this Lease the dispenser price for sanitary napkins will not exceed a price
equal to 150% of the wholesale price paid by the Landlord.

 

7.             Carpeting

 

In addition to the aforementioned nightly and
weekly vacuuming, Landlord will do the following:

 

E-2

 

Weekly

 

All carpeting is to be spot cleaned removing
all stains, smudges, and unsightly appearances.

 

8.             Glass

 

Monthly

 

a.             Clean all partitions
and furniture glass.

 

Annually

 

b.             Clean all perimeter
windows, both inside and out.

 

9.             Kitchen Areas

 

Nightly

 

a.             Clean all tables,
chairs, counters and sinks.

 

b.             Spot cleaning of
walls.

 

c.             Cleaning of coffee
pots.

 

10.           General

 

a.                                       All Lights are
to be extinguished and the doors as specified by Tenant are to be locked after
cleaning is completed.

 

b.                                      All personnel are
to be uniformed and clean in appearance during business hours.

 

c.                                       Cleaning of all
private bathrooms will be subject to additional charges which will be
determined on a case-by-case basis.

 

E-3

 

EXHIBIT F

 

RENT SCHEDULE

 

1.             For the period from the Rent Commencement
Date until the last day of the month in which the sixty month anniversary of
the Rent Commencement Date occurs, the sum of One Million Five Hundred Seventy-two
Thousand Five Hundred Ten Dollars ($1,572,510.00) per annum payable in equal
monthly installments of One Hundred Thirty-one Thousand forty-two and 50/100
Dollars ($131,042.50).

 

2.             For the period from the first day of the
month in which the sixty-first month anniversary of the Rent Commencement Date
occurs until the Expiration Date, the sum of One Million Seven Hundred
Eighty-two Thousand One Hundred Seventy-eight Dollars ($1,782,178.00) per annum
payable in equal monthly installments of One Hundred Forty-eight Thousand Five
Hundred Fourteen and 83/100 Dollars ($148,514.83).

 

F-1

 

EXHIBIT G

 

TENANT ESTOPPEL CERTIFICATE

 

Tenant shall furnish to Landlord an estoppel
certificate, duly acknowledged, certifying the veracity of and affirming any or
all of the following information as of the date of the execution of such
estoppel certificate.

 

A.            Date of Lease and Description of Space.
That Tenant executed and exchanged the lease with Landlord dated [insert date of lease] (a copy of the lease along with any
amendments and/or modifications may be required as an exhibit to the estoppel
certificate) covering the demised premises, as shown crosshatched on the plan
annexed hereto as Schedule                in
the Building located at 110 Allen Road, Liberty Corner, New Jersey.

 

B.            Lease in Full Force and Effect. That
the lease, consisting of pages, plus Exhibits A-     , is
in full force and effect and has not been modified, changed, altered, or
amended in any respect; or if it has been modified or amended, Tenant shall
certify as true the terms, dates, and number of pages of each of such
modifications or amendments.

 

C.            Commencement and Termination Dates.
That the lease term commenced on [insert date of commencement
of lease], that the rent commencement date, if different from the
lease commencement date, is [insert date of rent
commencement], and that the lease term shall expire on [insert expiration date of lease].

 

D.            Renewal or Extension Options.
Whether Tenant has any option(s) to renew or extend the lease term. If Tenant
has any such option(s), Tenant shall certify as true the terms of such
option(s) and whether any option has been exercised.

 

E.             Other Options and Rights. Whether
Tenant has any option(s), right(s) of first refusal, or right(s) of first offer
to expand the demised premises or to purchase the Building. If Tenant has such
option(s) or right(s), Tenant must certify as true the terms of such option(s)
or right(s) and whether any such option or right has been exercised.

 

F.             Tenant in Possession. Whether
Tenant has accepted and is now in full possession of the demised premises and
is paying full rent under the lease; or, if Tenant is not in full possession,
whether Tenant has assigned the lease, sublet all or a portion of the demised
premises, or otherwise transferred any interest in the lease or the demised
premises. Tenant agrees to provide a copy of such assignment, sublease, or
transfer upon request.

 

G.            Current Minimum Rent. The current [pick one: monthly or annual] base annual rent payable under
the lease, the current [pick one: monthly or
annual] additional rent, and the date to which the base annual rent
and all additional rent and other charges required to be paid under this lease
have been paid.

 

H.            No Prepaid Rent. That no base annual
rent or additional rent under the lease has been paid for more than thirty (30)
days in advance of its due date.

 

G-1

 

I.              Rent Concessions. Whether Tenant
is currently receiving any rental concessions, rebates, or abatements; and, if
so, the terms of such concession, rebate, or abatement, including, without
limitation, the date when this concession, rebate, or abatement shall expire.
Tenant will also confirm whether it is entitled to any future rent concessions,
rebates, or abatements under the lease; and if so, the terms of the future
concessions, rebates, or abatements.

 

J.             Alterations Are Complete. That all
alterations, improvements, additions, build outs, or construction required to
be performed under the lease have been completed in accordance with the plans
and specifications in the lease attached to the lease as Exhibit        .

 

K.            No Landlord Defaults. That to the
best of Tenant’s knowledge:  there are no
defaults existing under the lease by Landlord and no circumstances currently
exist that would                      default
solely upon the service of notice or the passage of time, and there is no                    for
Tenant to cancel the lease or to exercise any other remedies available to it by                     default
by Landlord.

 

L.             No Tenant Defaults. That to the
best of Tenant’s knowledge:  there are no
defaults existing under the lease by Tenant and no circumstances currently
exist that would constitute a default solely upon the service of notice or the
passage of time, and there is no existing basis for Landlord to cancel the
Lease or to exercise any other remedies available to it by virtue of a default
by Tenant.

 

M.           Tenant Has No Claims or Defenses.
That to the best of Tenant’s knowledge: 
there are currently no valid defenses, counterclaims, offsets, credits,
deductions in rent, or claims against the enforcement of any of the agreements,
terms or conditions of the Lease except as noted on said certificate.

 

N.            No Change in Tenant’s Financial
Condition. That there has been no material adverse change in Tenant’s
financial condition between the date of the execution of the Lease and the date
hereof except as noted on said certificate.

 

O.            No Pending Bankruptcy. That there
are currently no bankruptcy or reorganizations actions, whether voluntary or
involuntary, pending against the Tenant under the Bankruptcy Laws of the United
States or any state thereof.

 

P.             Purchaser or Lender Not Responsible for
Landlord Violations. That any claims pertaining to matters currently in
existence shall be enforced solely by money judgment and/or specific
performance against landlord named in the lease and may not be enforced as an
offset to or defense against enforcement of this Lease except as noted in said
certificate.

 

Q.            Tenant Acknowledges Prospective
Sale/Financing. Either or both of the following:

 

(i)            Tenant acknowledges that Landlord has
informed Tenant that Landlord has entered into a contract to sell the Land and
Building to a purchaser and that no modification, revision, or cancellation of
the written lease or amendments thereto shall be effective unless a written
consent thereto of the purchaser is first obtained.

 

G-2

 

(ii)           Tenant acknowledges that Landlord has
informed Tenant that an assignment of Landlord’s interest in the lease has been
or will be made to a mortgagee; and that no modification, revision, or
cancellation of the Lease or amendments thereto shall be effective unless a
written consent thereto of such mortgagee is first obtained.

 

R.            Other Information Requested. Any
other information reasonably requested by Landlord.

 

S.             Estoppel Certificate Inducement.
That Tenant acknowledges that the estoppel certificate is made to induce a
purchaser to consummate a purchase of the Land and the Building and/or to
induce mortgagee to make and maintain a mortgage loan secured by the Land and
the Building, as the case may be, knowing that said purchaser and/or mortgagee
as applicable, shall rely upon the truth of the estoppel certificate in making
and/or maintaining such purchase and/or mortgage as applicable.

 

T.            Authorization of Signer. That the
person signing the estoppel certificate on behalf of Tenant is a duly authorized
agent of Tenant.

 

G-3

 

EXHIBIT H

 

FORM OF LETTER OF
CREDIT

 

DRAFT

DATE OF
ISSUE:  JANUARY 30, 2001

ADVISING BANK

CHASE MANHATTAN BANK

55 WATER STREET, ROOM 1708, 17TH FL

ATTN:  STANDBY LETTER OF CREDIT

NEW YORK, NY 10041

	
  APPLICANT:

  DIVERSIFIED CAPITAL, LP ON BEHALF OF

  RELIANT PHARMACEUTICALS, LLC

  200 W. MADISON STREET, SUITE 2500

  CHICAGO, IL 60606

  	
  BENEFICIARY:

  OP&F BERNARDS – 78 L.L.C.

  C/O LEND LEASE REAL ESTATE

  INVESTMENTS, INC.

  787 SEVENTH AVENUE, 46TH FLOOR

  NEW YORK, NY 10019

  

 

AMOUNT:  US DOLLARS, 1,956,901.20 (ONE MILLION NINE
HUNDRED FIFTY SIX THOUSAND NINE HUNDRED ONE AND 20/100 US DOLLARS)

EXPIRY:  JANUARY 30, 2002 AT ISSUING BANK OR ADVISING
BANK

WE HEREBY OPEN
OUR IRREVOCABLE STANDBY LETTER OF CREDIT NUMBER 00323664 IN FAVOR OF
OP&F BERNARDS – 78 L.L.C. AVAILABLE WITH ON BANK ONE, NA BY PAYMENT OF
BENEFICIARY’S SIGHT DRAFT SUBSTANTIALLY IN THE FORM OF EXHIBIT A
ACCOMPANIED BY:

1.               THE ORIGINAL
LETTER OF CREDIT AND ALL AMENDMENTS, IF ANY, AND

2.               A COMPLETED DRAW CERTIFICATE
IN SUBSTANTIALLY THE FORM OF EXHIBIT B HERETO.

WE HEREBY
AGREE WITH THE BENEFICIARY THAT PRESENTATIONS MADE IN STRICT COMPLIANCE WITH
THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT PRIOR TO 12:00 NOON EST ON
ANY BUSINESS DAY SHALL BE DULY HONORED AND WE SHALL MAKE A PAYMENT TO THE
BENEFICIARY IN THE AMOUNT STATED IN THE APPLICABLE SIGHT DRAFT ON THE NEXT
BUSINESS DAY TO THE ACCOUNT SPECIFIED IN EXHIBIT B HERETO NOT LATER THAN 3:00
P.M. EST.  IF A SIGHT DRAFT IS PRESENTED
BY YOU AFTER THE TIME SPECIFIED ABOVE, AND PROVIDED THAT SUCH SIGHT DRAFT
CONFORMS TO THE TERMS AND CONDITIONS OF THIS LETTER OF CREDIT, PAYMENT SHALL BE
MADE TO YOU ON THE SECOND BUSINESS DAY. 
A “BUSINESS DAY” SHALL MEAN ANY DAY ON WHICH BANKS IN THE STATE OF NEW
YORK ARE NOT AUTHORIZED OR REQUIRED TO BE CLOSED.

DRAFT(S) AND
OTHER REQUIRED DOCUMENTS AS SET FORTH HEREIN MAY BE PRESENTED AT OUR OFFICE AT
BANK ONE, NA, 1 BANK ONE PLAZA, MAIL CODE IL 1-0236, CHICAGO, IL 60670-0236 OR
AT THE OFFICE OF THE ADVISING BANK AS INDICATED ABOVE.

THE AMOUNT OF
THIS LETTER OF CREDIT MAY BE REDUCED BY AMENDMENT UPON OUR RECEIPT OF A SIGNED
WRITTEN REQUEST FROM THE BENEFICIARY AUTHORIZING US TO REDUCE THE LETTER OF
CREDIT AND SPECIFYING THE AMOUNT OF THE AUTHORIZED REDUCTION.

THIS LETTER OF
CREDIT IS TRANSFERABLE.  TRANSFER REQUEST
MUST BE SUBMITTED IN ACCORDANCE WITH EXHIBIT C WHICH FORMS AN INTEGRAL
PART OF THIS LETTER OF CREDIT.  TRANSFER
CHARGES ARE FOR THE APPLICANT’S ACCOUNT.

IT IS A
CONDITION OF THIS LETTER OF CREDIT THAT IT SHALL BE AUTOMATICALLY EXTENDED
WITHOUT AMENDMENT FOR ADDITIONAL ONE YEAR PERIODS FROM THE PRESENT OR ANY
FUTURE EXPIRATION DATE UNLESS WE NOTIFY THE BENEFICIARY IN WRITING BY
REGISTERED MAIL OR OVERNIGHT COURIER AT LEAST THIRTY (30) DAYS PRIOR TO THE
CURRENT EXPIRATION DATE THAT WE ELECT NOT TO EXTEND THIS LETTER OF CREDIT FOR
AN ADDITIONAL ONE YEAR PERIOD.

EXCEPT AS SET
FORTH HEREIN COMMUNICATIONS WITH RESPECT TO THIS LETTER OF CREDIT SHALL
(I) BE IN WRITING, (II) SPECIFICALLY REFER TO THE NUMBER OF THIS
LETTER OF CREDIT, (III) IF TO US BE ADDRESSED TO US AT 1 BANK ONE PLAZA,
MAIL CODE IL 1-0236, CHICAGO, IL 60670-0236 AND (IV) IF TO THE
BENEFICIARY BE ADDRESSED TO THE BENEFICIARY C/O LEND LEASE REAL ESTATE
INVESTMENTS, INC., 787 SEVENTH AVENUE, 46TH FLOOR, NEW YORK, NEW
YORK, ATTENTION:  JOHN CARRICK, VICE
PRESIDENT.

INSTRUCTIONS
TO THE ADVISING BANK.

PLEASE
URGENTLY ADVISE THIS LETTER OF CREDIT TO THE BENEFICIARY WITHOUT ADDING YOUR
CONFIRMATION.

UPON RECEIPT
OF DOCUMENTS IN STRICT COMPLIANCE WITH THE TERMS AND CONDITIONS OF THIS LETTER
OF CREDIT, YOU MAY REIMBURSE YOURSELVES BY CLAIMING ON US BY SWIFT, QUOTING OUR
REFERENCE NUMBER.

THE CREDIT IS
SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDIT (1993
REVISION), INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION 500.

	
   

  	
  VERY
  TRULY YOURS

  
	
   

  	
  BANK
  ONE, NA

  

 

 

2

 

EXHIBIT
A

FOR OF SIGHT DRAFT

[LETTERHEAD OF BENEFICIARY]

TO

[NAME AND
ADDRESS OF ISSUING BANK

AND ADVISING BANK]

DRAFT

PAY TO THE ORDER
OF OP&F BERNARDS – 78, L.L.C. THE SUM OF [                                   ]
UNITED STATES DOLLARS                                    
AT SIGHT.  DRAWN UNDER BANK ONE, NA
LETTER OF CREDIT NUMBER 00323664 DATED JANUARY 30, 2001.

DRAWN ON:                               BANK ONE, NA

CHICAGO, ILLINOIS

[NAME AND SIGNATURE BLOCK OF
BENEFICIARY]

DATE:                                             

EXHIBIT
B

DRAWING
CERTIFICATE

TO:

[NAME AND
ADDRESS OF ISSUING BANK/ADVISING BANK]

TO WHOM IT MAY
CONCERN:

THE
UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:

1.                                       I AM A DULY AUTHORIZED OFFICER OF OP&F BERNARDS – 78, L.L.C. (“BENEFICIARY”)

2.                                       THE DRAWING IS MADE UNDER BANK ONE, NA (THE “ISSUING BANK”)
LETTER OF CREDIT NO. 00323664 (THE “LETTER OF CREDIT”).  THE LETTER OF CREDIT WAS ISSUED PURSUANT TO
THE AGREEMENT OF LEASE DATED AS OF JANUARY 30, 2001 (THE “LEASE”) BETWEEN
BENEFICIARY, AS LANDLORD, AND RELIANT PHARMACEUTICALS, L.L.C., A TENANT.

3.                                       BENEFICIARY IS ENTITLED TO MAKE THIS DRAWING UNDER THE LETTER
OF CREDIT BECAUSE (CHECK WHICHEVER STATEMENT(S) APPLY):

A.                                          THE EXPIRY DATE OF THE LETTER OF CREDIT WILL OCCUR WITHIN 30
DAYS AND THE ISSUING BANK HAS PROVIDED NOTICE TO THE BENEFICIARY THAT THE
ISSUING BANK HAS ELECTED NOT TO RENEW THE LETTER OF CREDIT.

B.                                            BENEFICIARY IS OTHERWISE ENTITLED TO DRAW UPON THE LETTER OF
CREDIT DUE TO THE FACT THAT THE FOLLOWING DEFAULT(S) HAVE OCCURRED AND ARE
CONTINUING UNDER THE LEASE (MUST SPECIFY NATURE OF DEFAULT UNDER THE LEASE)

4.                                       BENEFICIARY REPRESENTS AND WARRANTS TO THE ISSUING BANK AND
THE APPLICANT THAT IT HAS COMPLIED WITH THE PROVISION OF THE LEASE PERMITTING
IT TO DRAW UNDER THE LETTER OF CREDIT.

5.                                       BENEFICIARY DIRECTS THAT THE PROCEEDS OF THIS DRAWING BE PAID
TO BENEFICIARY BY THE FOLLOWING MEANS:

[TO BE FILLED IN BY BENEFICIARY]

THIS DRAWING CERTIFICATE IS DELIVERED EFFECT AS OF                                   

[NAME AND SIGNATURE BLOCK OF
BENEFICIARY]

 

 

EXHIBIT
C WHICH AN INTEGRAL PART OF THIS LETTER OF CREDIT NO. 

	
  To:

  	
                                             ,
  20    

  
	
   

  	
   

  
	
  Bank One, NA

  	
   

  
	
  1 Bank One Plaza, Mail Code IL 1-0236

  	
   

  
	
  Chicago, IL 60670

  	
   

  

 

Ladies/Gentlemen:

	
  RE: Credit No.

  	
   

  	
   

  	
  Issued by

  	
   

  
	
   

  	
   

  	
  Advice No.

  	
   

  

 

For value
received, the undersigned beneficiary hereby irrevocably transfers to:

	
   

  
	
  (Name of Transferee)

  
	
   

  
	
  (Address)

  

 

all rights of
the undersigned beneficiary to draw under the above Letter of Credit in its
entirety.

By this
transfer, all rights of the undersigned beneficiary in such Letter of Credit
are transferred to the transferee and the transferee shall have the sole rights
as beneficiary thereof, including sole rights relating to any amendments
whether increases or extensions or other amendments and whether now existing or
hereafter made.  All amendments are to be
advised direct to the transferee without necessity of the consent of or notice
to the undersigned beneficiary.

The advice of
such Letter of Credit is returned herein, and we ask you to endorse the
transfer on the reverse thereof, and forward direct to the transferee with your
customary notice of transfer.

We enclose our
remittance of $                                   
by                   
certified check/                      
cashier’s check/or                     
we are wiring funds or                      
we authorize you to debit our A/C No.                                       
in payment of your transfer commission and in addition thereto we agree to pay
to you on demand any expenses which may be incurred by you in connection with
this transfer.

	
  Signature
  Authenticated

  	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  	
   

  
	
  Bank

  	
   

  	
  Name of Beneficiary

  
	
   

  	
   

  	
   

  
	
  Authorized
  Signature

  	
   

  	
  Authorized
  Signature/Title

  

 

The above signature with title as stated
conforms with that on file with us and is authorized for the execution of said instruments.

	
   

  	
   

  	
   

  
	
  (Name of Bank)

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  (Authorized Signature)

  	
   

  	
   

  

 

2Exhibit 10.33(a)

 

FIRST AMENDMENT TO AGREEMENT OF LEASE

 

THIS FIRST AMENDMENT TO AGREEMENT
OF LEASE (“First Amendment”) is made this 5th
day of November, 2003, by and between THE REALTY ASSOCIATES FUND
V, L.P., a Delaware limited partnership, successor in interest to OP
& F Bernards – 78, L.L.C. (“Landlord”) and RELIANT PHARMACEUTICALS, LLC, a Delaware limited liability
company (“Tenant”).

 

W I T N E S S E T H:

 

WHEREAS, OP & F Bernards – 78, L.L.C., Landlord’s predecessor in interest,
and Tenant entered into that certain Agreement of Lease dated February 5, 2001
(the “Lease”), pursuant to which Tenant leased that certain premises in the
building located on the fourth floor of the building located at 110 Allen Road,
Liberty Corner, Bernard Township, New Jersey 07938 (the “Building”), said
premises containing approximately Fifty-Two Thousand Four Hundred Seventeen
(52,417) rentable square feet of office space (the “Original Premises”);

 

WHEREAS, Landlord and Tenant desire to amend the Lease to (i) increase the square
footage of the Original Premises, and (ii) amend certain other terms and
conditions of the Lease as herein provided.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants and agreements
herein contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree
to the following:

 

1.             Recitals. The recitals set forth above are incorporated herein by this reference
with the same force and effect as if fully set forth hereinafter.

 

2.             Capitalized Terms. Capitalized terms not otherwise defined herein shall have the meaning
ascribed to them in the Lease. From and after the date hereof, the Lease and
this First Amendment shall be known collectively as the “Lease”.

 

3.             Landlord. All references in the
Lease to OP & F Bernards – 78, L.L.C., as “Landlord”, shall now apply to
The Realty Associates Fund V, L.P., which acquired the Building.

 

4.             Premises.

 

a.             Effective November 1, 2003 (the “Effective Date”), the rentable square
footage of the Original Premises shall be increased by Twenty Thousand Two
Hundred Eighty-Three (20,283) rentable square feet of space on the first floor
of the Building as shown on the floor plan attached hereto as Exhibit A-2
(the “Additional Premises”) to Seventy-Two Thousand Seven Hundred Seven
(72,707) rentable square feet. Tenant shall, within five (5) days after
Landlord’s request, complete and execute the letter attached hereto as Exhibit
B-1 and deliver it to Landlord. Landlord shall deliver possession of the

 

1

 

Additional
Premises to Tenant broom cleaned and vacant of tenancies except as provided in
Paragraph 19 below .

 

b.             As of the Effective Date, Paragraph 1 of the Basic Lease Provisions and
Definitions contained in the Preamble of the Lease (the “Basic Lease Provisions”)
shall be deleted in its entirety and the following Paragraph 1 substituted in
lieu thereof:

 

“1.           Premises or Demised Premises: The Demised Premises
contains 72,707 rentable square feet of space in the aggregate consisting of
the following: (i) the “Original Premises” is outlined in red on the floor plan
annexed to the Lease and made a part thereof as Exhibit A consisting of
approximately 52,417 rentable square feet located on the fourth floor in the
east and west wings, and (ii) the “Additional Premises” is shown on the floor
plan annexed to this First Amendment and made a part hereof as Exhibit A-2
consisting of approximately 20,283 rentable square feet located on the first
floor, together with all fixtures, equipment, improvements and installations
attached to the Original Premises and the Additional Premises, in the building
located at 110 Allen Road, Liberty Corner, Bernards Township, New Jersey 07938
(the “Building”) located on the parcel of land more particularly described in
Exhibit A-1 attached to the Lease and made a part thereof (the “Land”). The
Building and the Land are referred to collectively in the Lease as the “Property.”  The Original Premises and the Additional
Premises are referred to collectively in the Lease as the “Demised Premises.”“

 

c.             From and after the Effective Date, except as otherwise provided herein,
all references in the Lease to the Demised Premises shall refer collectively to
the Original Premises and the Additional Premises.

 

5.             Term. The Term of the Lease with respect the Additional Premises shall be
coterminous with the Term of the Lease with respect to the Original Premises
and, accordingly, shall commence on the Effective Date and expire July 31, 2011
(inclusively, the “Additional Premises Term”), unless terminated sooner
pursuant to the provisions of the Lease or hereof.

 

6.             Fixed Rent.

 

a.             Throughout the Term of the Lease, Tenant shall continue to pay Fixed Rent
with respect to the Original Premises in the amounts set forth in Paragraph 6
of the Basic Lease Provisions and Exhibit F attached to the Lease.

 

b.             In addition to the Fixed Rent payable under the Lease with respect to the
Original Premises, as of the Effective Date, Tenant shall pay Fixed Rent with
respect to the Additional Premises, at the times and in the manner set forth in
Paragraph 2 of the Lease, according to the following schedule:

 

Additional
Premises Fixed Rent

 

	
  Lease Period

  	
   

  	
  Annual Fixed Rent

  	
   

  	
  Monthly Fixed Rent

  	
   

  
	
  11/01/03 – 05/31/06

  	
   

  	
  $

  	
  557,782.56

  	
  *

  	
  $

  	
  46,481.88

  	
   

  
	
  06/01/06 – 01/31/09

  	
   

  	
  $

  	
  578,065.56

  	
  *

  	
  $

  	
  48,172.13

  	
   

  
	
  02/01/09 – 07/31/11

  	
   

  	
  $

  	
  598,348.56

  	
  *

  	
  $

  	
  49,862.38

  	
   

  

 

2

 

*annualized amounts

 

c.             Notwithstanding anything to the contrary contained herein, no Fixed Rent
shall be paid by Tenant with respect to the Additional Premises for the first
eight (8) full consecutive calendar months of the Additional Premises Term. No
other amounts due to Landlord under this Lease other than the Fixed Rent with
respect to the Additional Premises shall be abated, except as expressly
provided herein. In the event Tenant defaults hereunder and fails to cure such
default within any applicable notice or cure period, Tenant shall not be
entitled to any further abatement of Fixed Rent with respect to the Additional
Premises and all Fixed Rent with respect to the Additional Premises previously
abated shall be immediately paid by Tenant to Landlord.

 

d.             Fixed Rent payable with respect to the Additional Premises shall be net of
electricity, which shall be a separate charge paid by Tenant in accordance with
Paragraphs 15(d) through (o) of the Lease.

 

e.             Paragraph 2(f) of the Lease is hereby deleted and shall be of no further
force and effect.

 

7.             Base Rent Paid Upon Execution. Upon Tenant’s execution of this First Amendment, Tenant shall deposit
with Landlord the sum of Forty-Six Thousand Four Hundred Eighty-One and 88/100
Dollars ($46,481.88) for the first full month’s Fixed Rent due with respect to
the Additional Premises, notwithstanding any abatement of Fixed Rent pursuant
to Paragraph 5(c) above. The Fixed Rent deposited by Tenant pursuant to this
Paragraph 7 shall be applied to the Fixed Rent due with respect to the
Additional Premises for the first full calendar month of the Additional
Premises Term for which Fixed Rent is due hereunder (i.e., the ninth full
calendar month of the Additional Premises Term).

 

8.             Security Deposit. The Security Deposit held by Landlord pursuant to the Lease shall not be
increased in connection with Tenant’s lease of the Additional Premises.

 

9.             Tenant’s Proportionate Share
of Expenses. As of the Effective
Date, Paragraph 9 of the Basic Lease Provisions shall be deleted in its
entirety and the following Paragraph 9 substituted in lieu thereof:

 

“9.           Tenant’s Proportionate Share of Expenses:  36.30% comprised of 26.17% with respect to
the Original Premises and 10.13% with respect to the Additional Premises,
arrived at by dividing the square footage of the Demised Premises (which for
purposes of the Lease, is agreed to be 72,707 rentable square feet in the
aggregate consisting of the Original Premises containing 52,417 rentable square
feet and the Additional Premises containing 20,283 rentable square feet) by
(ii) the Total Square Footage of the Building (which for purposes of this Lease
is agreed to be 200,270 square feet).”

 

10.          Parking. As of the Effective Date, Paragraph 13 of the Basic Lease Provisions
shall be deleted in its entirety and the following Paragraph 13 substituted in
lieu thereof:

 

3

 

“13.        Number of Tenant Allocated Parking Spaces:  Fifteen
(15) covered reserved spaces (“Reserved Spaces”) and Tenant shall be permitted
to use its pro rata share of unreserved space in common with other Tenants of
the Building.”

 

11.          Operating Expense Base. The “Operating
Expense Base” (as that term is defined in Paragraph 3(a) of the Lease) with
respect to the Additional Premises shall be the calendar year 2004. The “Initial
Year” (as that term is defined in Paragraph 3(a) of the Lease) with respect to
the Additional Premises shall mean the period of time from the Effective Date
until the end of the calendar year 2003. The “Real Estate Taxes Base” (as that
term is defined in Paragraph 3(a) of the Lease) with respect to the Additional
Premises shall be the calendar year 2004. The Operating Expense Base, Initial
Year and Real Estate Taxes Base with respect to the Original Premises shall
remain as stated in the Lease and shall not be modified hereby.

 

12.          Tenant Improvements.

 

a.             Tenant
acknowledges that Landlord has met its obligations to construct tenant
improvements or provide an allowance for Tenant to construct tenant
improvements with respect to the Original Premises pursuant to Exhibit B of the
Lease.

 

b.             Tenant
hereby agrees to accept the Additional Premises in its “as-is” condition
existing on the date hereof and Landlord shall have no obligation to construct
any tenant improvements to the Additional Premises on behalf of Tenant.

 

c.             Tenant shall construct tenant improvements (“Improvements”) for the
Additional Premises in accordance with the plans (the “Plans”), which shall be
prepared by Tenant and approved in final form by Landlord, which approval shall
not be unreasonably withheld. The Plans shall include items and information as
Landlord shall reasonably require to evaluate Tenant’s work. All Improvements
shall be constructed in a good and workmanlike manner using new materials and
in accordance with all applicable laws, codes and regulations, including the
Americans with Disability Act (“ADA”) and in accordance with Paragraph 6 of the
Lease (except that the first sentence of Paragraph 6(b) of the Lease shall not
apply with respect to the Improvements). It is expressly agreed that (a) Tenant
shall not commence any such work until said Plans have been approved by
Landlord, and (b) the Plans which have been so approved by Landlord have been
used by Tenant, if applicable, to obtain all permits that are necessary to
construct the Improvements. Tenant acknowledges that Landlord’s review and
approval of the Plans is not conducted for the purpose of determining the
accuracy and completeness of the Plans, their compliance with applicable codes
and governmental regulations including ADA, or their sufficiency for purposes
of obtaining a building permit, all of which shall remain the responsibility of
Tenant and Tenant’s architect. Accordingly, Landlord shall not be responsible
for any delays in obtaining the building permit due to the insufficiency of the
Plans or any delays due to changes in the Plans required by the applicable
governmental regulatory agencies reviewing the Plans. If, as a result of any
proposed Improvements made by Tenant to the Additional Premises, Landlord is
obligated to comply with the ADA or any other law or regulation and such
compliance requires Landlord to make any improvement or alteration to any
portion of the Building, as a condition to Landlord’s approval, Landlord shall
have the right to require Tenant to pay to Landlord prior to the construction
of any such Improvement by Tenant, the entire cost of any improvement or
alteration Landlord is obligated to complete by such law or regulation.

 

4

 

d.             Tenant shall provide Landlord with a breakdown of the estimated total cost
of the Improvements (“Cost Breakdown”), including, without limitation:
construction cost of the Improvements; architectural and engineering fees
relating to the preparation and review of the space plan and the Plans
(inclusive of the initial space plan and all design work above and below the
ceiling); governmental agency plan check, permit and other fees; sales and use
taxes; testing and inspection costs; and construction fees (including general
contractor’s overhead and supervision fees and the construction supervisory fee
referred to in subparagraph (i) hereof). In connection thereto, Landlord hereby
grants to Tenant an “Improvement Allowance” of up to Twenty and 75/100 Dollars
($20.75) per rentable square foot of space in the Additional Premises (i.e.,
20,283 rentable square feet multiplied by $20.75 = $420,872.25). The
Improvement Allowance shall be disbursed to Tenant not more frequently than
once per month based on disbursement requests submitted by Tenant to Landlord
and certified by Tenant’s architect. Such disbursement request shall set forth
the total amount incurred, expended and/or due for each requested item less
prior disbursements and a description of the work performed, and materials
supplied and/or costs incurred or due with respect to each item for which
disbursement is requested. Each such disbursement request shall be accompanied
by invoices, vouchers, statements, affidavits, payroll records and/or other
documents reasonably requested by Landlord, which substantiate costs incurred
to justify such a disbursement, together with lien waivers for those
contractors and materialmen providing construction services or materials. In
addition, each disbursement shall be subject to inspection and approval of
completed work by Landlord’s construction engineer. In the event the Cost
Breakdown exceeds the Improvement Allowance, Tenant shall pay from another
source of funds the amount by which the Cost Breakdown exceeds the Improvement
Allowance prior to any disbursement of the Improvement Allowance by Landlord. In
the event the actual cost of the Improvements is less than the Improvement
Allowance, the unused portion of the Improvement Allowance shall not be paid or
refunded to Tenant or be available to Tenant as a credit against any
obligations of Tenant under the Lease, except that up to thirty-three percent
(33%) of the Improvement Allowance (i.e., $420,872.25 multiplied by .33 =
$138,887.84) may be used to reimburse Tenant for its documented, third-party
out-of-pocket expenses incurred in connection with its installation of its data
and voice cabling and wiring at the Additional Premises. The Improvement
Allowance must be expended on or before the expiration of the twelve (12)
calendar month period following the Effective Date. If the Improvement
Allowance is not expended on or before such date, the Improvement Allowance
shall no longer be available to Tenant and Landlord shall have no further
obligation to provide such Improvement Allowance to Tenant.

 

e.             Tenant shall obtain Landlord’s approval of Tenant’s contractor, which
approval shall not be unreasonably withheld provided (i) such contractor’s primary business is the
construction of tenant/interior finish work in commercial office buildings;
(ii) such contractor is licensed to do business in Somerset County, New Jersey,
and (iii) such contractor is not a contractor with whom Landlord or its agent
has had unsatisfactory dealings in the past. Landlord hereby agrees that if
Tenant elects to use Gale Construction Company, LLC or DDB Interior Contracting
as Tenant’s contractor, such contractors are pre-approved and shall not require
any additional approvals by Landlord. Additionally, Tenant shall submit
a copy of the proposed construction contract to Landlord for Landlord’s
approval. Landlord’s approval, which shall not be unreasonably withheld, shall
be given or denied (as applicable) within ten (10) business days of receipt of
the necessary information from Tenant. Tenant’s contractors and subcontractors shall
be required to provide the

 

5

 

following
types of insurance, in the minimum amounts indicated, naming Landlord (and
Landlord’s mortgagee, if required by Landlord) as additional insured:

 

(i)            Workmen’s Compensation with full statutory limits for employer’s
liability.

 

(ii)           Commercial General Liability Insurance including direct and contingent
liability in the aggregate amount of One Million and No/100 Dollars
($1,000,000.00) combined single limit coverage per occurrence for personal
injury, death or property damage.

 

(iii)          The Liability Policy shall include coverage for Broad Form Hold Harmless
Agreement as is contained in the standard contract.

 

(iv)          Automobile Liability Insurance with bodily injury limits of $250,000 per
person, $500,000 per accident, and $50,000 per accident for Property Damage.

 

Certificates of insurance for
all of the foregoing insurance coverages shall be delivered to Landlord before
construction of the improvements is started and before Tenant’s contractor’s
equipment is placed upon the Additional Premises. In all other respects, the
insurance coverage above mentioned shall comply with the Lease provisions.

 

f.             It is agreed that Tenant assumes the entire responsibility and liability due
to its negligence, including statutory or common law, for any and all injuries
or death of any or all persons, including its contractor, subcontractors and
employees, and for any and all damages to property caused by or resulting from
or arising out of any act or omission on the part of Tenant, its contractor,
subcontractors or employees, in the prosecution of the work thereunder. With
respect to such work Tenant agrees to indemnify and save harmless Landlord, its
mortgagee, architect, engineers and their employees and all other tenants of
the Property from and against all losses and expense, including legal fees,
which they may suffer or pay as the result of claims or lawsuits due to,
because of or arising out of any and all such injuries, death or damage,
whether real or alleged, and Tenant, its contractor and subcontractors shall
assume and defend at their own expense all such claims or lawsuits, unless
caused by the gross negligence or willful misconduct of Landlord. Tenant agrees
to insure this assumed liability in its Comprehensive General Liability Policy
and the original or copy of the policy delivered to Landlord shall indicate
this contractual coverage.

 

g.             For and during the period of construction, Tenant shall provide and pay
for all utilities consumed upon the Additional Premises during said period and
for the removal of all temporary connections.

 

h.             Tenant shall endeavor to cause the contractor to substantially complete
construction of the Improvements in a diligent manner. It shall be the sole
responsibility of Tenant to file all drawings and specifications, pay all fees
and obtain all permits and applications from any governmental authorities
having jurisdiction, and to obtain any certificates or approvals, including a
certificate of occupancy, required to enable Tenant to occupy the Additional
Premises. Upon completion of the Improvements, Tenant’s contractors and/or
subcontractors shall provide Landlord, without cost to Landlord, with one

 

6

 

(1)
set of transparent “as built” drawings. No delay in completion of construction
of the Improvements shall delay the Effective Date beyond the date specified
herein.

 

13.          Signage. Paragraph 9 of the Lease is
hereby amended by adding the following new paragraph to the end thereof:

 

“Tenant,
at Tenant’s sole cost and expense, shall have the non-exclusive right to place
signage on the exterior of the Building on the top southeast corner of the
Building in a location to be mutually agreed upon by Landlord and Tenant,
subject to all applicable laws, codes and regulations (including any zoning
requirements), as well as any restrictions or covenants of record, Landlord’s
signage and design criteria, and otherwise subject to Landlord’s prior
approval, including but not limited to, Landlord’s approval of the size,
location and installation of such signage, provided:  (i) Tenant is leasing from Landlord a minimum
of Seventy-Two Thousand Seven Hundred Seven (72,707) rentable square feet in
the Building; (ii) Tenant is the single largest tenant in the Building; (iii)
Tenant has neither assigned the Lease nor sublet more than twenty-five percent
(25%) of the Premises in the aggregate (so long as Tenant remains the largest
Tenant in the Building after any such subletting); and (iv) Tenant has not been
in default under the Lease beyond the expiration of any applicable notice and
cure period at any time during the Term of the Lease. Landlord shall have the
right, (x) at anytime during the Term of the Lease if any of the foregoing
conditions are not met, or (y) at the expiration or earlier termination of the
Lease, to require Tenant to remove any such signage at Tenant’s sole cost and
expense and to repair any damage caused by such removal at Tenant’s sole cost
and expense, except that, in the event that Landlord requires Tenant to remove
its exterior signage because Tenant is no longer the single largest tenant in
the Building, then such signage shall be removed at Landlord’s sole cost and
expense. Tenant will be required to have an annual maintenance contract
providing for the ongoing maintenance of such sign. The signage rights granted
to Tenant in this Paragraph are personal to the original Tenant and may not be
assigned by or to any person or entity other than the original Tenant,
including in connection with any transfer permitted pursuant to Paragraph 27 of
the Lease. Landlord shall use commercially reasonable efforts to cooperate with
Tenant in obtaining any necessary authorizations and permits required in
connection with such signage. Notwithstanding anything to the contrary
contained herein, for purposes of this Paragraph 13, a “Permitted Transferee”
(as that term is defined in Paragraph 16 of this First Amendment) shall be
deemed to be the “original Tenant” or the “Tenant”. “

 

14.          Notice.
Landlord’s addresses for notice set
forth in Paragraph 18 of the Lease shall be deleted entirely and the following
shall be substituted in lieu thereof:

 

	
   

  	
  “To Landlord:

  	
   

  	
  The Realty Associates Fund V,
  L.P.

  
	
   

  	
   

  	
   

  	
  c/o Kwartler Associates, Inc.

  
	
   

  	
   

  	
   

  	
  2 North Street

  
	
   

  	
   

  	
   

  	
  Waldwick, New Jersey 07463

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  With copy to:

  	
   

  	
  TA Associates Realty

  
	
   

  	
   

  	
   

  	
  28 State Street, Tenth Floor

  
	
   

  	
   

  	
   

  	
  Boston, Massachusetts 02109

  

 

7

 

Attention: Mr. Christopher J. Good”

 

15.          Option
to Renew. The Option to Renew
contained in Paragraph 24 of the Lease shall apply with respect to the
Additional Premises, it being understood that Tenant must exercise the Option
to Renew with respect to the entire Demised Premises (i.e., the Original
Premises and the Additional Premises) and not merely a part thereof.

 

16.          Assignment
and Subletting. Paragraph 27(c)
of the Lease is hereby deleted in its entirety and the following shall be
substituted in lieu thereof:

 

“Notwithstanding
anything to the contrary contained in Section 27 of the Lease, provided Tenant
is not in default after expiration of all applicable notice and cure periods at
the time, Tenant shall have the right, without Landlord’s consent, upon thirty
(30) days advance written notice to Landlord, to assign the Lease or sublet the
whole or any part of the Premises (a) to any entity or entities which are owned
by Tenant, or which owns Tenant, (b) in connection with the sale or transfer of
substantially all of the assets of the Tenant or the sale or transfer of
substantially all of the outstanding ownership interests in Tenant, or (c) in
connection with a merger, consolidation or other corporate reorganization of
Tenant (each of the transactions referenced in the above subparagraphs (a), (b),
and (c) are hereinafter referred to as a “Permitted Transfer,” and each
surviving entity shall hereinafter be referred to as a “Permitted Transferee”);
provided, that such assignment or sublease is subject to the following
conditions:

 

(i)            Tenant
shall remain fully liable under the terms of the Lease;

 

(ii)           such Permitted Transfer shall be subject to
all of the terms, covenants and conditions of the Lease;

 

(iii)          such Permitted Transferee has a net worth at
least equal to the net worth of Tenant as of the date of this First Amendment,
and

 

(iv)          such Permitted Transferee shall expressly
assume the obligations of Tenant under the Lease by a document reasonably
satisfactory to Landlord.

 

In addition, an initial public offering shall
not be considered an assignment under the Lease.”

 

17.          Right of
Second Offer. In the event Tenant leases the Additional Space
in the Building pursuant to its right of second offer set forth in Paragraph 32
of the Lease or any other additional space in the Building within the twelve
(12) month period following the date on which this First Amendment has been
executed by both Landlord and Tenant, whichever signs later (the “Execution
Date”), then, Landlord and Tenant hereby agree that any such additional space
shall be subject to the same terms and conditions applicable to the Additional
Premises set forth herein and the parties hereto shall enter into an amendment
to the Lease confirming such terms.

 

18.          Atrium
Lighting. Landlord hereby agrees that, within a reasonable
period of time following the Effective Date but no later than six (6) months
following the Effective Date, Landlord shall remove or replace the existing
pink neon lighting in the atrium area of the Building.

 

8

 

19.          Telecommunications
Wiring and Equipment. Tenant shall have the right to operate
telecommunications equipment and to bring fiber optic cabling into the Demised
Premises, subject to all applicable laws, codes and regulations and provided,
the cost of installing and maintaining any such cabling shall be borne solely by Tenant and Tenant’s use of such telecommunications
equipment and/or cabling shall not unreasonably interfere with any other tenant’s
use and enjoyment of its premises or the Common Areas of the Building. Such
telecommunications equipment and/or cabling may only be installed, maintained,
repaired and replaced by a contractor approved by Landlord, in Landlord’s sole
but reasonable discretion. Any such installation shall be made pursuant to
Paragraph 6 of the Lease and, notwithstanding anything to the contrary
contained in Paragraph 6(b) of the Lease, shall be subject to Landlord’s
reasonable consent. The Building’s minimum point of entry (“MPOE”) for
telephone service, the Building risers and the telephone terminal rooms located
on each floor of the Building may only be accessed with Landlord’s prior
consent and by contractors approved by Landlord, in Landlord’s sole but
reasonable discretion. Tenant shall be responsible for any loss, cost, damage,
liability and expense (including attorneys’ fees) arising out of or related to
the installation, maintenance, repair and replacement of any such
telecommunications equipment and/or cabling by Tenant. Landlord shall have the
right, (i) at the expiration or earlier termination of the Lease, or (ii) in
the event such telecommunications equipment and/or cabling interferes with
another tenant’s use of its premises or the Common Areas, to require Tenant to
remove any such telecommunications equipment and/or cabling and repair and
restore any damage caused by such removal at Tenant’s sole cost and expense. Notwithstanding
anything to the contrary contained in this Paragraph 19 or elsewhere in the
Lease or herein, Tenant understands that the tenant in the space which is adjacent
to the Additional Premises (the “Adjacent Tenant”) has telecommunications
equipment in the telecommunications closet located in the Additional Premises
and Tenant hereby agrees that it shall not disturb any such equipment or
unreasonably interfere with such Adjacent Tenant’s use of its
telecommunications equipment located in such telecommunications closet until
January 31, 2004. The Adjacent Tenant’s right to enter the Additional Premises
in order to access such telecommunications closet shall be on reasonable notice
to Tenant and during Tenant’s normal business hours (except in the event of an
emergency), and shall be made without unreasonable interference to Tenant’s
business conducted from the Additional Premises or Tenant’s use and enjoyment
of the Additional Premises.

 

20.          Brokers. Tenant represents and warrants to Landlord that Tenant has not had any
dealings or entered into any agreements with any person, entity, realtor,
broker, agent or finder in connection with the negotiation of this First Amendment
other than Kwartler Associates, Inc. and GVA Williams (collectively, the “Brokers”).
Tenant shall indemnify and hold Landlord harmless from and against any loss,
claim, damage, expense (including costs of suit and reasonable attorneys’ fees)
or liability for any compensation, commission or charges claimed by any other
realtor, broker, agent or finder claiming to have dealt with Tenant in
connection with this First Amendment. Landlord shall be responsible for payment
of the brokers’ fees to the Brokers pursuant to the terms of a separate
agreement.

 

21.          Reaffirmation
of Terms. Except as modified
herein, all of the terms, covenants and provisions of the Lease are hereby
confirmed and ratified and shall remain unchanged and in full force and effect.

 

22.          Representations. Tenant hereby represents and warrants to Landlord that Tenant (i) is not
in default of any of its obligations under the Lease and that such Lease is

 

9

 

valid,
binding and enforceable in accordance with its terms, (ii) has full power and
authority to execute and perform this First Amendment, and (iii) has taken all
action necessary to authorize the execution and performance of this First
Amendment.

 

23.          Counterpart
Copies. This First Amendment
may be executed in two or more counterpart copies, each of which shall be
deemed to be an original and all of which counterparts shall have the same
force and effect as if the parties hereto had executed a single copy of this
First Amendment.

 

[SIGNATURES
APPEAR ON FOLLOWING PAGE]

 

10

 

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

 

 

	
   

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  THE REALTY ASSOCIATES FUND V, L.P.,

  
	
   

  	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty Associates Fund V LLC, a Massachusetts

  
	
   

  	
   

  	
   

  	
  limited liability company,

  
	
   

  	
   

  	
   

  	
  general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Realty Associates Advisors LLC,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware limited liability company,

  Manager

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  Realty Associates Advisors Trust, a

  Massachusetts business trust, sole

  member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Henry G. Brauer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty Associates Fund V Texas Corporation, a

  
	
   

  	
   

  	
   

  	
  Texas corporation, general partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ Henry G. Brauer

  
	
   

  	
   

  	
   

  	
  Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  RELIANT PHARMACEUTICALS, LLC,

  
	
   

  	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Joseph
  J. Krivulka

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
  President

  	
   

  
									

 

11

 

EXHIBIT
A-2

 

THE ADDITIONAL PREMISES

 

(Floor Plan)

 

EXHIBIT “A-2”

FLOOR PLAN OF ADDITIONAL PREMISES

 

 

A-2-1

 

EXHIBIT B-1

 

VERIFICATION LETTER

 

RELIANT PHARMACEUTICALS, LLC, a Delaware limited partnership, (“Tenant”) hereby certifies that it has
entered into a lease amendment with THE REALTY ASSOCIATES FUND
V, L.P., a Delaware limited partnership (“Landlord”) and verifies
the following information as of the                   day
of                         ,
20       :

 

	
  Number of Rentable Square Feet in Premises:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Additional Premises Commencement Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Lease Termination Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Tenant’s Share:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Initial Base Rent:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Federal Tax I.D. No.:

  	
   

  	
   

  	
   

  

 

Tenant acknowledges and agrees that all
tenant improvements Landlord is obligated to make to the Additional Premises,
if any, have been completed and that Tenant has accepted possession of the
Additional Premises and that as of the date hereof, there exist no offsets or
defenses to the obligations of Tenant under the Lease. Tenant acknowledges that
it has inspected the Additional Premises and found them suitable for Tenant’s
intended commercial purposes.

 

	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  RELIANT PHARMACEUTICALS, LLC,

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  

 

[SIGNATURES
CONTINUE ON NEXT PAGE]

 

B-1-1

 

	
  ACKNOWLEDGED AND
  AGREED TO:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LANDLORD:

  	
   

  
	
   

  	
   

  
	
  THE REALTY ASSOCIATES FUND V, L.P.,

  	
   

  
	
  a Delaware limited
  partnership

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Realty Associates Fund V LLC, a

  	
   

  
	
   

  	
  Massachusetts limited liability company,

  	
   

  
	
   

  	
  general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Realty Associates Advisors LLC,

  	
   

  
	
   

  	
   

  	
  a Delaware limited liability company,

  	
   

  
	
   

  	
   

  	
  Manager

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Realty Associates Advisors Trust,

  	
   

  
	
   

  	
   

  	
   

  	
  a Massachusetts business trust,

  	
   

  
	
   

  	
   

  	
   

  	
  sole member

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  Realty Associates Fund V Texas Corporation,

  	
   

  
	
   

  	
  a Texas corporation, general partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Officer

  	
   

  
								

 

B-1-2

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