Document:

ex10-4.htm

Exhibit 10.4

 

TERMINATION AGREEMENT

 

This TERMINATION AGREEMENT (this “Agreement”) is made and entered into as of the 4th day of June, 2011 (the “Effective Date”) by and among China Pharmaceutical Group Limited (“CPG”), having an address at 276 Zhongshan West Road Shijiazhuang, Hebei Province, People’s Republic of China; Unigene Biotechnology Co., Ltd. (“JV”), having an address at Economic and Technological Development Zone, Shijiazhuang,  Hebei Province, People’s Republic of China; and Unigene Laboratories, Inc. (“Unigene”), having an address at 81 Fulton Street, Boonton, NJ 07005.  CPG, JV and Unigene are each referred to herein individually as a “Party” and, collectively, as the “Parties”.  Any capitalized term used but not defined herein shall have the meaning ascribed to such term in the Technology Transfer Agreement (as defined below).

 

RECITALS

 

WHEREAS, Shijiazhuang Pharmaceutical Group Corporation (“SPGC”) and Unigene entered into that certain Joint Venture Contract, dated as of June 15, 2000 (as amended), pursuant to which SPGC and Unigene established JV;

 

WHEREAS, SPGC and Unigene entered into that certain Technology Transfer Agreement, dated April 23, 2008 (the “Technology Transfer Agreement”), pursuant to which, among other things, Unigene granted to JV certain licenses and other rights;

 

WHEREAS, SPGC assigned all of its rights, responsibilities and obligations under the Technology Transfer Agreement to its subsidiary, CPG, pursuant to that certain Agreement of Assignment, dated April 23, 2008, by and among Unigene, SPGC and CPG;

 

WHEREAS, on even date herewith, Unigene and CPG have entered into an Equity Transfer Agreement pursuant to which CPG has acquired all of Unigene’s ownership interest in JV; and

 

WHEREAS, the Parties have agreed to terminate the Technology Transfer Agreement, and wish to document such termination and the Parties’ respective rights and obligations with respect to matters related to such termination.

 

NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

ARTICLE I.

 

TERMINATION OF THE

TECHNOLOGY TRANSFER AGREEMENT

 

Section 1.1.                      Termination.  Upon the terms and conditions set forth herein, the Parties hereby irrevocably terminate, effective as of the Effective Date, the Technology Transfer Agreement.  From and after the Effective Date, the Parties shall have no obligations to, or rights from one another pursuant to, the Technology Transfer Agreement, except as expressly provided otherwise in this Agreement, and the Technology Transfer Agreement will have no further force or effect.

 

  

  

  

 

Section 1.2.                      No Licenses.  The Parties agree that, effective as of Effective Date, and notwithstanding anything to the contrary in the Technology Transfer Agreement, all licenses and other rights granted to JV and CPG under the Technology Transfer Agreement, and all sublicenses and other rights granted by JV or CPG to any person under or with respect to such licenses and other rights, are terminated.  JV and CPG shall cease all use of all Unigene Property and Improvements (each as defined in Sections 2.1 and 2.2, respectively) no later than ten (10) business days after the Effective Date.

 

Section 1.3.                      Mutual Agreement.  The Parties expressly acknowledge and agree that the termination of the Technology Transfer Agreement contained in this Article I is by mutual agreement of the Parties and that, notwithstanding anything to the contrary in the Technology Transfer Agreement, all effects and consequences of such termination are set forth in this Agreement.

 

Section 1.4.                      Mutual Release.  In consideration of the mutual representations, warranties and covenants contained herein, each Party, for itself and for each of its affiliates, effective upon the Effective Date and without limitation of Section 3.2, hereby irrevocably, unconditionally and completely releases and forever discharges the other Parties, such other Parties’ affiliates, and its and their officers, directors, stockholders, agents, employees, heirs, administrators, executors, predecessors, successors and assigns (hereinafter, the “Released Parties”) from, and hereby irrevocably, unconditionally and completely waives and relinquishes, such Party’s Released Claims (as defined below).  The Parties acknowledge they are aware that they may hereafter discover facts in addition to or different from those now known or believed to be true with respect to the subject matter of this release, but that it is their intention to hereby fully, finally and forever settle and release all such claims, disputes and differences, known or unknown, suspected or unsuspected, that now exist or heretofore have existed between the Parties and that in furtherance of such intention, this release shall remain in effect as a full and complete release notwithstanding the discovery or existence of any such additional or different facts.   The term “Released Claims,” when used herein with respect to a Party, shall mean and include each and every claim, charge, complaint, demand, action, cause of action, suit, right, debt, sum of money, cost, reckoning, covenant, contract, agreement, promise, doing, omission, damage, execution, obligation, liability and expense (including attorneys’ fees and costs), of every kind and nature (whether at law or in equity) (collectively, “Claims”) that such Party may have had in the past, may now have or may have in the future against the Released Parties, and which has arisen or arises directly or indirectly out of, or relates directly or indirectly to, any circumstance, agreement, activity, action, omission, event or matter occurring or existing on or prior to the Effective Date to the extent such claim relates to or arose out of a breach of the Technology Transfer Agreement; provided, however, that the Released Claims shall exclude: (1) any and all rights to seek and obtain indemnification for any breach of any representation, warranty, covenant or agreement under this Agreement; (2) any and all rights to seek and obtain enforcement of, or a remedy arising out of the breach of, any obligation provided for in this Agreement; (3) Claims arising directly or indirectly out of, or relating directly or indirectly to, any circumstance, agreement, activity, action, omission, event or matter occurring or existing after the Effective Date, even if any of the foregoing also existed on or prior to the Effective Date; and (4) Claims arising directly or indirectly out of, or relating directly or indirectly to, any infringement, misappropriation or unauthorized use or disclosure by a Party of any other Party’s intellectual property, confidential information or other proprietary rights.

 

  

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ARTICLE II.

 

PROPRIETARY INFORMATION AND MATERIALS

 

Section 2.1.                      Return of Unigene Property.  JV and CPG shall, no later than ten (10) business days after the Effective Date and at JV and CPG’s expense, return to Unigene, or destroy, all information, materials, data, know-how and other technologies provided or made available to JV and/or CPG by Unigene, including (i) all Technologies, Technical Data, Specifications, amydating enzymes, and other components relating to the Products, (ii) all copies and embodiments (in whatever media) of any of the foregoing, and (iii) all documents and materials derived from, based upon or otherwise relating to any of the foregoing (including any Products) (collectively, the “Unigene Property”), provided that with respect to Improvements, JV and CPG shall deliver to Unigene at least one copy and embodiment, if any, of all Improvements, and JV and CPG shall destroy all other copies and embodiments of the Improvements.  JV and CPG shall, no later than ten (10) business days after the Effective Date, deliver to Unigene a written confirmation, signed by an officer of each of JV and CPG, respectively, that such return and destruction have been fully carried out.  CPG and JV each represent and warrant to Unigene that it has not disclosed any Unigene Property to any third party.

 

Section 2.2.                      Improvements.  The Parties agree that Section 4.3 of the Technology Transfer Agreement survives the termination of the Technology Transfer Agreement.  In connection with the foregoing, CPG and JV hereby assign to Unigene all improvements and modifications to, and derivative works of, the Technologies, Specifications and/or Technical Data, or any other Unigene Property, developed by or on behalf of CPG and/or JV during the term of the Technology Transfer Agreement (collectively, “Improvements”), free and clear of any liens, encumbrances, claims and restrictions.  CPG and JV shall provide such assistance and cooperation as is reasonably requested by Unigene to document and perfect Unigene’s ownership of the Improvements, including by executing any documents reasonably requested by Unigene, and to enable Unigene to understand and make use of the Improvements.

 

Section 2.3.                      Confidentiality.  Without limiting the requirements of Section 2.1, CPG and JV agree to keep confidential at all times after the date of this Agreement, and not directly or indirectly reveal, disclose or use for its own or any other purpose, any Unigene Property and Improvements.

 

Section 2.4.                      Third Parties.  JV and CPG each represents and warrants to Unigene that it has not licensed, sublicensed, assigned, transfer, provided or otherwise made available any Unigene Property to any third party.  If, notwithstanding the foregoing, any third party (including SPGC) was provided with or had access to any Unigene Property, JV or CPG, as applicable, shall cause such third party to comply with the requirements of Section 1.2 and this Article II.

 

Section 2.5.                      Unigene Marks.  Within ten (10) business days after the Effective Date, JV shall submit to all appropriate governmental authorities all filings necessary to change its corporate name to a name that does not include the word “UNIGENE” or any confusingly similar variation thereof.  From and after the date of such approval, JV immediately shall cease use of the “UNIGENE” name, and shall destroy, or obliterate the use of “UNIGENE” on, all brochures, marketing materials, advertising, websites, signage, business cards, letterhead, stationary, invoices, products, packaging and any other documents and materials referencing “UNIGENE”, provided that the foregoing shall not apply to any business records created prior to such approval date that may be retained by JV.  If CPG or JV has obtained any trademark registrations or filed any trademark applications anywhere in the world for a trademark containing the word “UNIGENE” or any confusingly similar variation thereof, CPG and/or JV shall assign, and hereby do assign, to Unigene all rights in such registrations and applications, and all common law rights and other rights in such trademarks.

 

  

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ARTICLE III.

 

REPRESENTATIONS AND WARRANTIES;

INDEMNIFICATION

 

Section 3.1.                      Mutual Representations and Warranties.  Each Party hereby represents and warrants to the other Parties as follows as of the Effective Date:

 

(a)           Organization and Authority.  It is validly existing and in good standing under the laws of its state or country of incorporation.  It has full power and authority to execute and deliver this Agreement and to perform its obligations hereunder.

 

(b)           Corporate Authority; Validity of Agreement; No Violation.  The execution and delivery of this Agreement and the performance of its obligations hereunder have been duly and validly authorized by all necessary corporate action, and no other corporate proceedings on its part are necessary to authorize such execution, delivery and performance.  This Agreement has been duly and validly executed and delivered by it and constitutes the valid and binding obligations of such Party enforceable against it in accordance with its terms.  Execution of this Agreement and consummation of the transactions contemplated hereby will not (i) result in the violation of or conflict with any of the terms and provisions of any of its organizational or governing documents, (ii) result in a violation or breach of, or constitute (with or without due notice or lapse of time or both) a default (or give rise to any right of termination, modification, cancellation or acceleration or loss of material benefits) under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture, contract, agreement, permit, license, lease, agreement or other obligation to which it is a party or may be subject or (iii) violate any order, writ, injunction, decree, statute, treaty, rule or regulation applicable to it.

 

(c)           Government Approvals.  Except as set forth in Section 4.1, no authorization, consent, approval, license, exemption from or filing or registration with any governmental authority under any applicable legal requirements, is necessary for the execution and delivery by it of this Agreement, the consummation by it of the transactions contemplated hereby, or the performance by it of its obligations under this Agreement.

 

(d)           Mutual Disclaimer.   EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NO PARTY OR ANY OF ITS OFFICERS, DIRECTORS, EMPLOYEES OR REPRESENTATIVES MAKES ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, IN RESPECT OF THIS AGREEMENT OR OTHERWISE.

 

Section 3.2.                      Indemnification.

 

(a)           From and after the Effective Date, CPG and JV, jointly and severally, agree to indemnify and hold harmless Unigene and its affiliates and each of their respective officers, directors, employees, agents, successors and assigns (“Unigene Indemnified Parties”) from and against and in respect of any and all losses, claims, damages (including special and consequential damages, including lost profits) (“Losses”), resulting or arising from any third party claim against the Unigene Indemnified Parties based upon or otherwise relating to (i) any acts or omissions of CPG and/or JV or their respective affiliates, officers, directors, employees, agents, successors or assigns in connection with the Technology Transfer Agreement on or prior to the date hereof, (ii) any product liability, bodily injury, risk of bodily injury, death or property damage, or (iii) any breaches by CPG and/or JV or their affiliates of any representations, warranties, covenants or other agreements contained in this Agreement.

 

  

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(b)           From and after the Effective Date, subject to Section 3.2(a), Unigene agrees to indemnify and hold harmless CPG and JV and each of their respective officers, directors, employees, agents, successors and assigns (“CPG/JV Indemnified Parties”) from and against and in respect of any and all Losses resulting or arising from any third party claim against the CPG/JV Indemnified Parties based upon or otherwise relating to (i) any acts or omissions of Unigene or its affiliates, officers, directors, employees, agents, successors or assigns in connection with the Technology Transfer Agreement on or prior to the date hereof, or (ii) any breaches by Unigene or its affiliates of any representations, warranties, covenants or other agreements contained herein.

 

Section 3.3.                      Indemnification Procedures with respect to Third Party Claims.

 

(a)                      Notice of Claim.  All indemnification claims in respect of any indemnitee seeking indemnity under Section 3.2 will be made solely by the corresponding Party seeking indemnity under Section 3.2 (the “Indemnified Party”).  The Indemnified Party will give the indemnifying Party (the “Indemnifying Party”) prompt written notice (an “Indemnification Claim Notice”) of any Losses or the discovery of any fact upon which such Indemnified Party intends to base a request for indemnification under Section 3.2, as applicable.  The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure.  Each Indemnification Claim Notice must contain a description of the claim and the nature and amount of such Losses (to the extent that the nature and amount of such Losses are known at such time).  Together with the Indemnification Claim Notice, the Indemnified Party will furnish promptly to the Indemnifying Party copies of all notices and documents (including court papers) received by the Indemnified Party in connection with any third party claim.

 

(b)                      Control of Defense.  At its option, the Indemnifying Party may assume the defense of any third party claim subject to indemnification as provided for in Section 3.2 by giving written notice to the Indemnified Party within thirty (30) days after the Indemnifying Party’s receipt of an Indemnification Claim Notice, provided however that (i) the claim solely seeks monetary damages and (ii) the Indemnifying Party expressly agrees in writing that as between the Indemnifying Party and the Indemnified Party, the Indemnifying Party shall be solely obligated to satisfy and discharge the claim in full (the matters described in (i) and (ii), the “Litigation Conditions”). The Indemnified Party may, at any time, assume all such defense if the Litigation Conditions are not satisfied at any time.   Upon assuming the defense of a third party claim in accordance with this Section 3.3, the Indemnifying Party shall be entitled to appoint lead counsel in the defense of the third party claim.  Should the Indemnifying Party assume the defense of a third party claim, except as otherwise set forth in this Section 3.3, the Indemnifying Party will not be liable to the Indemnified Party for any legal expenses subsequently incurred by such Indemnified Party in connection with the analysis, defense or settlement of the third party claim.

 

  

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(c)                      Right to Participate in Defense.  Without limiting Section 3.3(b), any Indemnified Party will be entitled to participate in, but not control, the defense of a third party claim for which it has sought indemnification hereunder and to employ counsel of its choice for such purpose; provided, however, that such employment will be at the Indemnified Party’s own expense unless (i) the employment thereof has been specifically authorized by the Indemnifying Party in writing, (ii) the Indemnifying Party has failed to assume and actively further the defense and employ counsel in accordance with Section 3.3(b) (in which case the Indemnified Party will control the defense), or (iii) the Indemnifying Party no longer satisfies the Litigation Conditions.

 

(d)           Settlement.  Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not enter into settlement of any third party claim without the prior written consent of the Indemnified Party, except as provided in this Section 3.3(d), such consent not to be unreasonably withheld or delayed.

 

ARTICLE IV.

 

MISCELLANEOUS

 

Section 4.1.                      Governmental Submission.  Upon execution by the Parties of this Agreement, CPG and JV shall undertake to make all filings, registrations or submissions to or with appropriate governmental authorities if any are necessary in connection with this Agreement and/or the termination of the Technology Transfer Agreement and the license and other rights granted thereunder.  CPG and JV promptly shall notify Unigene in writing of such filing, registration or submission, if any.

 

Section 4.2.                      Whole Agreement.  This Agreement constitutes the entire agreement between the Parties concerning the subject matter hereof, and supersedes and invalidates all other commitments, representations and warranties relating to the subject matter hereof which may have been made by the Parties either orally or in writing prior to the Effective Date of this Agreement.  This Agreement shall be in English and Chinese and shall be made in four (4) copies of each language version.  Each version of the Agreement shall be equally authentic.  Each Party shall retain one copy of each language version.  The remaining copies shall be filed with the relevant government authorities, if required.  In the case of any discrepancy in the two language versions, the Chinese version shall prevail.

 

Section 4.3.                      Amendments.  No modification, alteration, addition or change of the terms hereof shall be binding on the Parties unless agreed by both Parties in writing.

 

Section 4.4.                      Waiver.  The waiver or forbearance or failure of a Party to insist in any one or more instances upon the performance of any provision of this Agreement shall not be construed as a waiver or relinquishment of that Party’s rights with respect to any other provision or to future performance of such provision and the other Party’s obligation in respect of such other provision or future performance shall continue in full force and effect.

 

Section 4.5.                      Severability.  In the event that any of the terms of this Agreement are determined invalid, unlawful or unenforceable to any extent, such term shall be construed to the maximum extent enforceable in accordance with the intent of the Parties, and the remaining terms shall continue to be valid to the fullest extent permitted by law.

 

  

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Section 4.6.                      Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the People’s Republic of China exclusively, as such laws shall be in effect from time to time, and such laws shall also be applied to all disputes, claims and other proceedings which may arise hereunder or relating hereto, in the event of arbitration, court proceedings or otherwise, without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

 

Section 4.7.                      Dispute Resolution.

 

(a)           Subject to Section 4.7(d), the Parties agree that any disputes, controversies or claims arising out of or related to this Agreement, or the breach thereof, whether based on contract, tort, statute, or other theory of liability (each, a “Dispute”) shall be resolved by binding arbitration, under the arbitration rules of the China International Economic and Trade Arbitration Commission (“CIETAC”) in force at the date of this Agreement.  The appointing authority shall be CIETAC.  Subject to Section 4.7(d), either Party may commence an arbitration by issuance of a notice to the other Party setting forth the basis of the Dispute.

 

(b)           The arbitral tribunal shall consist of three (3) arbitrators. Within twenty (20) days of the issuance of the notice commencing the arbitration, one (1) arbitrator shall be appointed by JV and CPG, deciding together, and one (1) arbitrator shall be appointed by Unigene. The third arbitrator shall be the Chairman of the arbitral tribunal and shall not be a national of either the PRC or the United States.  The third arbitrator shall be selected by agreement between the two (2) arbitrators appointed by the Parties. In the event that the two (2) arbitrators cannot agree upon the third arbitrator within a period of twenty (20) days from the date of nomination of the second arbitrator, the third arbitrator shall be selected by CIETAC. The arbitrators shall be independent of the Parties, and shall not be employees, directors or shareholders of either Party or of an affiliate.  To be qualified for appointment, a proposed arbitrator shall confirm in writing that he/she is ready, willing and able to serve as an arbitrator subject to the terms hereof, including the timing specified herein.

 

(c)           The seat of arbitration shall be Beijing, People's Republic of China.  The language used for the arbitration shall be Chinese.  Each Party shall have the right to have its own interpreters, lawyers and legal advisers present through the arbitration.  In connection with the commencement of the arbitral proceeding, the arbitral tribunal shall establish the rules for the proceeding.  During the pendency of the arbitral proceeding, costs and fees assessed by the arbitral tribunal and/or CIETAC shall be shared equally by both Parties.  Following issuance of the arbitration award, all costs of arbitration actually incurred by the Parties shall be borne by the losing Party, unless otherwise determined by the arbitration award.  The arbitration award shall be in Chinese (and translated into English) and in writing, and shall set forth the evidentiary and legal basis for all ruling(s).  The arbitration award shall be final and not subject to appeal and binding on the Parties hereto.

 

(d)           Notwithstanding anything to the contrary in this Agreement, each Party shall have the right to seek preliminary injunctive or other equitable relief from a court of competent jurisdiction that may be necessary to avoid irreparable harm, maintain the status quo or preserve the subject matter of the arbitration.

 

  

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Section 4.8.                      Assignability; Successors and Assigns.  Neither this Agreement nor any of the rights or obligations of the Parties hereunder may be assigned by any Party without the prior written consent of the other Parties to this Agreement.  Notwithstanding the foregoing, a Party, may, without such consent, assign any or all of its rights and obligations under this Agreement in connection with the transfer or sale of all or substantially all of its assets or stock, or in the event of the merger or consolidation or similar transaction or transfer or sale in connection with the transfer or sale of all or substantially all of that portion of its business relating to this Agreement.  Any attempted assignment or delegation in contravention hereof shall be null and void, ab initio.  Subject to the foregoing, this Agreement and all rights and powers granted and obligations created hereby will bind and inure to the benefit of the hereto and their respective successors and assigns.

 

Section 4.9.                      Headings; Rules of Construction.  The headings preceding the text of the Articles, Sections and subsections hereof are inserted solely for convenience of reference, and shall not constitute a part of this Agreement, nor shall they affect its meaning, construction or effect.  All words used in this Agreement will be construed to be of such gender or number as the context may require.  Except where expressly provided otherwise, when a reference is made in this Agreement to an Article or Section, such reference is to an Article or Section of this Agreement.  Whenever the words “include,” “includes” or “including” are used in this Agreement, they are deemed to be followed by the words “without limitation”.  The words “hereof,” “herein” and “hereunder” and words of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement.  The use of “or” is not intended to be exclusive unless expressly indicated otherwise.

 

Section 4.10.                      Publicity

 

.  Neither Party may issue a public announcement of this Agreement or the transactions contemplated hereby without the prior written consent of the other Party, except as may be required by applicable law, rule or regulation.  

 

Section 4.11.                      Counterparts

 

.  This Agreement and any amendments hereto may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be as effective as delivery of a manually executed counterpart of this Agreement.

 

  

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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be duly executed this on the day and year first above written.

 

 

	
CHINA PHARMACEUTICAL GROUP LIMITED

	 	 
	By:	 
	 	 
	Name:	 
	 	 
	Title:	 

 

	
UNIGENE BIOTECHNOLOGY CO., LTD.

	 	 
	By:	 
	 	 
	Name:	 
	 	 
	Title:	 

 

	
UNIGENE LABORATORIES, INC.

	 	 
	By:	 
	 	 
	Name:	 
	 	 
	Title:	 

 

 

9ex10-5.htm

Exhibit 10.5

LEASE FOR REAL PROPERTY

THIS LEASE is made and entered into as of May 24, 2011 (the "Effective Date") by and between RCP Birch-Little Falls, LLC, a New Jersey limited liability company, whose principal business office is located at c/o Marlow Park, LLC, 80 Greenwood Avenue, Midland Park, New Jersey 07432, as 70% Tenant-in-Common, and 110 Little Falls DCLA, LLC, a New Jersey limited liability company, whose principal business office is located at c/o North Jersey Development Group, Inc., 333 Route 46, Mountain Lakes, New Jersey 07046, as 30% Tenant-in-Common (collectively, "Landlord"); and UNIGENE LABORATORIES INC., a Delaware corporation, whose principal business office is located at 81 Fulton Street, Boonton, New Jersey 07005 ("Tenant").

In consideration of the mutual covenants contained herein and intending to be legally bound hereby, the parties covenant and agree as follows:

1.           Demised Premises.

Landlord hereby demises and leases to Tenant, and Tenant hires and takes from Landlord, the entire building (the "Building") located at 110 Little Falls Road, in the Township of Fairfield, Essex County, New Jersey (the "Land")(the Building and the Land shall collectively be referred to as the "Demised Premises"), upon the terms and conditions set forth herein.  The Building is located on the property known and designated as Block 2801, Lot 22 on the Tax Map of the Township of Fairfield (the "Real Property").  The Demised Premises may be used exclusively for research and development in the social sciences and humanities (NAICS #541720) (the "Permitted Use").

2.           Notices

All notices, demands, and communications hereunder shall be served or given by first-class mail and facsimile (if provided) and if intended for Landlord, shall be addressed to RCP Birch-Little Falls, LLC, c/o Marlow Park, LLC, 80 Greenwood Avenue, Midland Park, New Jersey 07432 , Attention: R. Christopher Prant (via facsimile ________________) and 110 Little Falls DCLA, LLC, c/o North Jersey Development Group, Inc., 333 Route 46, Mountain Lakes, New Jersey 07046, Attn.: Daniel Cohen (via facsimile 973-263-3122) or to such other address as may be requested by Landlord in writing with a copy to Doreen L. Dondero, Esq., Law Offices of Thomas A. Buonocore, PC, 1719 Route 10, Suite 301, Parsippany, New Jersey 07054,; and if intended for Tenant, shall be addressed to Tenant at 81 Fulton Street, Boonton, New Jersey 07005, Attention: General Counsel (via facsimile (973) 335-0972), or such other address as maybe requested by Tenant in writing.

Any notice given hereunder by mail shall be deemed delivered three (3) business days after being deposited in a United States general or branch post office, enclosed in a prepaid envelope, addressed as provided above.

 

  

  

  

 

3.           Term and Renewal Option

Tenant shall have and hold the Demised Premises with their appurtenances beginning on May 24, 2011 (the "Lease Commencement Date"), for a term of seven (7) years (the "Initial Term"), ending on May 23, 2018 (the "Initial Term Expiration Date").  Tenant shall have the option to extend the term of this Lease (the "Renewal Option") beyond the Initial Term Expiration Date for one (1) additional term of five (5) years (the "Renewal Term"), provided that (a) Tenant provides to Landlord prior written notice of its intention to exercise the Renewal Option at least six (6) months but no more than twelve (12) months prior to the Renewal Term; and (b) Tenant is not in default, beyond the expiration of any applicable grace or cure period, either when the Renewal Option is exercised or when the Renewal Term begins.  The Initial Term and, if applicable, the Renewal Term are hereinafter referred to collectively as the "Lease Term."  The term "Lease Year" means each 365-day period beginning on May 24.  All the terms and conditions of this Lease shall remain in full force and effect during the Renewal Term except that Base Rent shall be increased in accordance with Section 4 herein.  In the event Tenant fails to provide Landlord with notice of intent to exercise the Renewal Option within the time frame provided for herein, the Renewal Option shall be deemed null and void and of no force or effect.

4.           Base Rent

The Tenant shall pay the Landlord base rent ("Base Rent"), as defined below, for each year of the Initial Term and Renewal Term in equal monthly payments due and payable in advance on the first day of each and every month commencing on the Lease Commencement Date.  Tenant shall pay Base Rent to Landlord at Landlord's address set forth above, or at such other place as Landlord may designate in writing.  Base Rent shall mean rent set forth in the chart below, which does not include (i) the monthly payments toward replacement of the parking lot payable by Tenant to Landlord pursuant to Section 8, (ii) utilities paid directly by Tenant pursuant to Section 9, (iii) Real Estate Taxes payable by Tenant to Landlord pursuant to Section 10, and (iv) Property Insurance Premiums payable by Tenant to Landlord pursuant to Section 11(a), those expenses described in clauses (i), (ii), (iii) and (iv) and any other sums due from Tenant hereunder, other than Base Rent shall hereinafter be referred to as "Additional Rent" and Base Rent and Additional Rent are hereinafter referred to collectively as "Rent."  Any failure by Tenant to pay Additional Rent shall be deemed a failure to pay Base Rent.  In the event that (a) any payment of monthly Base Rent shall be paid more than five (5) business days after the due date for same, or (b) any Additional Rent is not paid within ten (10) business days after Tenant's receipt of an invoice therefor accompanied by reasonable supporting documentation, Tenant shall pay, together with such payment, a late charge equal to five percent (5%) of the amount of the payment due.  In addition, all past due payments that are not paid within thirty (30) days of the due date for same shall bear interest from the date due through the date paid at the rate of twelve percent (12%) per annum or the maximum lawful rate of interest, whichever is less.

 

  

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Initial Term

 

	
Lease Year

	
Annual Base Rent

	
Monthly Base Rent

	
May 24, 2011 to May 23, 2012

	
$135,000

	
$11,250

	
May 24, 2012 to May 23, 2013

	
$140,000

	
$11,667

	
May 24, 2013 to May 23, 2014

	
$140,000

	
$11,667

	
May 24, 2014 to May 23, 2015

	
$140,000

	
$11,667

	
May 24, 2015 to May 23, 2016

	
$145,000

	
$12,083

	
May 24, 2016 to May 23, 2017

	
$145,000

	
$12,083

	
May 24, 2017 to May 23, 2018

	
$145,000

	
$12,083

 

Renewal Term

 

	
Lease Year

	
Annual Base Rent

	
Monthly Base Rent

	
May 24, 2018 to May 23, 2019

	
$147,175

	
$12,265

	
May 24, 2019 to May 23, 2020

	
$149,387

	
$12,449

	
May 24, 2020 to May 23, 2021

	
$151,624

	
$12,635

	
May 24, 2021 to May 23, 2022

	
$153,898

	
$12,825

	
May 24, 2022 to May 23, 2023

	
$156,206

	
$13,017

5.           Hold Over Tenancy

If Tenant shall remain in possession of the Demised Premises after expiration of the Initial Term or Renewal Term, as the case may be, or otherwise in contravention of this Lease and/or without the consent of Landlord ("Holdover Occupancy"), such Holdover Occupancy shall not be deemed to extend the Term or renew this Lease.  Tenant agrees to indemnify and save Landlord harmless from and against all claims, losses, damages, liabilities, costs and expenses (including, without limitation, reasonable attorneys' fees and disbursements) resulting from delay by Tenant in surrendering the Demised Premises, including, without limitation, any claims made by any succeeding tenant founded on such delay. The parties recognize and agree that the damage to Landlord resulting from any failure by Tenant to timely surrender possession of the Demised Premises will be extremely substantial, may exceed the amount of the monthly installments of Base Rent and Additional Rent payable hereunder, and will be impossible to accurately measure. Tenant therefore agrees that if possession of the Demised Premises is not surrendered to Landlord at the expiration of the Initial Term or Renewal Term, as the case may be, then, in addition to any other rights and remedies Landlord may have hereunder or at law, and without in any manner limiting Landlord's right to demonstrate and collect any damages in excess of the following amount suffered by Landlord and arising from Tenant's failure to surrender the Demised Premises as provided herein, Tenant shall pay to Landlord on account of use and occupancy of the Demised Premises for each month and for each portion of any month during such a Holdover Occupancy, a sum equal to one and one-half (1/2) times the Rent then in effect during the last month of the Initial Term or Renewal Term, as the case may be.  Nothing herein contained shall be deemed to permit Tenant to retain possession of the Demised Premises after the Initial Term Expiration Date or the expiration of the Renewal Term, as the case may be, or to limit in any manner Landlord's right to regain possession of the Demised Premises through summary proceedings or otherwise, and no acceptance by Landlord of payments from Tenant after the Initial Term Expiration Date or the expiration of the Renewal Term, as the case may be, shall be deemed to be other than on account of the amount to be paid by Tenant in accordance with the provisions of this Section 5.  Except as specifically provided otherwise in this Section 5, all other terms and conditions of this Lease shall remain the same for the Holdover Occupancy notwithstanding Landlord's failure to consent thereto.

 

  

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6.           Mortgagee Agreement and Subordination

With respect to any mortgage on the Building, Landlord shall obtain the agreement of any mortgagee that, during the term of this Lease or any extension thereof, it shall not exercise any rights or claims it may have as mortgagee to the extinguishment, impairment or termination of this Lease and shall do or commit no act or thing which would result in termination or interfere with the Tenant's quiet enjoyment of the Demised Premises so long as the Tenant shall abide by and perform its obligations.  Tenant shall subordinate this Lease to any mortgage that may hereafter be placed on the Demised Premises, provided however, that the subordination agreement shall contain a provision that the holder of any such mortgage, its heirs, executors, successors, administrators, or assigns shall not exercise any rights or claims it may have as mortgagee to the extinguishment, impairment, or termination of this Lease so long as the Tenant shall abide by and perform its obligations.

7.           Right of Entry

Landlord, its employees and agents, shall have the right to enter the Demised Premises for the purpose of examining and inspecting same, showing to prospective purchasers, tenants or mortgagees, provided that reasonable prior notice, emergencies excepted, is provided to the Tenant.  Except in case of emergency, Landlord will use its best efforts not to disrupt Tenant's business.

8.           Maintenance, Repair, and Replacement Obligations

Tenant has examined the Demised Premises and the Building and has entered into this Lease without any representation on the part of the Landlord as to the condition thereof.  Subject to the terms of this Section 8, Tenant will throughout the Term provide and maintain, at its expense, in a constant state of repair the roof, roof membrane and the parking lot.  If, during the Lease Term, due to age or condition the roof must be replaced, then Landlord shall replace the roof at its own expense.  In no event shall Tenant penetrate or place any items on the roof of the Building without the express written consent of Landlord, it being acknowledged that Tenant shall be responsible for any damage thereto, or portion thereof, on account of such actions.  Tenant shall be responsible for replacing the parking lot one (1) time during the Lease Term.  Landlord and Tenant have agreed that the approximate cost to replace the parking lot at the Demised Premises is $40,000.00.  Tenant shall finance said cost at six percent (6%) interest per annum over the initial Term.  Tenant shall pay same in equal monthly payments of $584.35 due and payable in advance on the first day of each and every month commencing on the Lease Commencement Date.  Said payments shall be deemed Additional Rent. If, during the Lease Term, due to age or condition the parking lot must be replaced more than one (1) time, then Landlord shall effect such additional replacement(s) at its own expense.  Landlord will make such other exterior or interior repairs to the structural components of the Demised Premises, as may be required to maintain the Demised Premises in such condition so that it may be used by the Tenant for the purposes for which it was rented and for the safety and preservation of the Building and Demised Premises.  As used herein, the term "structural components" shall mean the foundation, concrete slab, exterior walls and structural beams.  It is understood and agreed that the Landlord shall maintain the Building and Demised Premises in conformance with all requirements and specifications of any public body or authority having jurisdiction over the same.  Because this Lease is intended to be a triple net lease, Landlord's repair and maintenance obligations are limited as stated herein.  In addition, throughout the Term, Tenant shall, at Tenant's sole cost and expense, keep and maintain in good order and condition, all non-structural components of the exterior and interior of the Demised Premises, including, but not limited to, the floor slab, walls, windows, offices, signs, loading docks, loading dock doors, sidewalks, warehouse fire doors, sprinkler system, the equipment, fixtures and facilities appurtenant thereto; the heating, ventilating and air conditioning therein "HVAC"); electrical (including lighting fixtures, ballasts and bulbs) and plumbing systems (collectively, the "Building Systems") which are located on the Demised Premises.  In the event any of the Building Systems are not in good working order or condition and are in need of repairs and Tenant does not so repair in a manner satisfactory to the Landlord in the reasonable exercise of its judgment, the Landlord shall make the repairs required and Tenant shall pay Landlord as Additional Rent, the cost incurred by Landlord for making repairs to the Demised Premises within ten (10) business days after being invoiced.

 

  

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9.           Utilities Services

Commencing on the Lease Commencement Date and throughout the Lease Term, Tenant shall be solely responsible for and shall pay directly to the water, electric and gas utility companies all bills for water, electric and gas usage in the Demised Premises.  Landlord shall not be responsible for the disruption of any utility service to the Demised Premises.

10.           Real Estate Taxes and Assessments

	
  

	
(a)

	
Tenant agrees to pay to Landlord, as Additional Rent, one hundred percent (100%) of all Real Estate Taxes accruing during the Lease Term assessed by the Township of Fairfield against the Real Property. "Real Estate Taxes" does not include (i) any federal, state or local taxes based on income or earnings, any gift, estate, inheritance, capital stock or franchise tax; (ii) any penalties or interest for late payment of taxes, realty transfer taxes resulting from the sale of the Building or the Real Property.  Tenant shall also pay to Landlord prior to delinquency any and all taxes and assessments levied, assessed or imposed upon Landlord by any governmental authority during the Lease Term upon or against (i) all furniture, fixtures, signs and equipment and any other personal property installed or located within the Demised Premises (other than any of the same owned by Landlord); and (ii) all alterations, additions, betterments or improvements of whatsoever kind or nature made by or on behalf of Tenant to the Demised Premises constituting the Tenant's property, as the same may be separately levied, taxed or assessed against or imposed directly upon Tenant by the taxing authorities.

	
  

	
(b)

	
Tenant shall likewise reimburse Landlord, as Additional Rent, for one hundred percent (100%) of any governmental assessments accruing during the Lease Term that may be levied upon the Demised Premises for local improvements.  If the payment of such assessments may be made in installments, then Tenant shall pay to Landlord only an amount equal to the portion of the assessment that will be paid for periods covered under the Lease Term.  Such Additional Rent shall be paid quarterly and on or before the next monthly payment date for Base Rent after presentation to Tenant by Landlord of a copy of the tax and/or assessment bills.  Tenant shall accept copies of tax and assessment bills issued by the appropriate governmental authorities as evidence of the amount of real estate taxes and assessments.

 

  

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(c)

	
If taxes upon Rent shall be substituted in whole or in part for Real Estate Taxes, then Tenant shall pay the taxes upon the Rent payable hereunder, but only to the extent to which such tax shall be substituted for the Real Estate Taxes assessed against the Real Property and only in such amounts as would be payable by Landlord if the Rent payable on the Demised Premises were the only rent subject to such taxes.  If Landlord shall receive any tax refund or rebate with respect of any year that is encompassed within the Lease Term, then Landlord may deduct from such tax refund any reasonable expenses incurred in obtaining such tax refund, and out of the remaining balance of such tax refund Landlord shall pay to Tenant such refund or rebate, provided that Tenant shall have paid Landlord any portion of the taxes being refunded and the refund or rebate relates to the period of time for which Tenant has paid their portion of taxes.

	
  

	
(d)

	
Tenant shall have the right to contest the amount or validity, in whole or in part, of any Real Estate Taxes by appropriate proceedings diligently conducted in good faith, only after paying the Real Estate Tax or posting security that Landlord reasonably requires in order to protect the Real Property against loss or forfeiture.  Upon the termination of the proceedings, Tenant will pay the amount of the Real Estate Taxes or part thereof as finally determined, the payment of which may have been deferred during the prosecution of the proceedings, together with any costs, fees, interest, penalties or other related liabilities.  Landlord will not be required to join in any contest or proceedings unless the provisions of any law or regulations then in effect require that the proceedings be brought by or in the name of Landlord.  In that event, Landlord will join in the proceedings or permit them to be brought in its name; however, Landlord will not be subjected to any liability for the payment of any costs or expenses in connection with any contest or proceedings, and Tenant will indemnify Landlord against and save Landlord harmless from, any costs and expenses (including reasonable legal fees).

 

  

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11.           Insurance

	
  

	
(a)

	
Landlord shall maintain a policy of "all-risk" insurance on the Building, which shall include coverage for boiler and machinery, flood, earthquake, building ordinance, and the loss of rents, to the extent such insurance coverage is available, as well as such other insurance as Landlord requires which is reasonable for property similar to the Real Property and Building. Such insurance shall provide coverage to the extent of not less than one hundred percent (100%) of the replacement cost of the Building or an amount satisfactory to Landlord, as well as boiler and machinery insurance coverage.  Tenant agrees to pay Owner, as Additional Rent, one hundred percent (100%) of all premiums accruing during the Lease Term for such insurance ("Property Insurance Premiums").  Landlord shall have the right at any time during the Lease Term to reasonably amend the insurance coverage under this Section 11, but not more than once per calendar year.

	
  

	
(b)

	
Tenant agrees to obtain and maintain all types of insurance that are required for the operation of its business, including worker's compensation.  Tenant shall be solely responsible for purchasing and maintaining insurance on its personal property at the Demised Premises, business interruption, and any and all other insurance which Tenant deems appropriate for its business operations; Landlord having no responsibility to provide such insurance.

	
  

	
(c)

	
Tenant shall purchase, pay for, and keep in effect throughout the Lease Term, a policy of comprehensive general liability insurance covering claims for bodily injury, personal injury, death, and/or property damage occurring upon, in or about the Demised Premises, or in or about the adjoining streets, sidewalks, parking areas and driveways, or arising from the Tenant's operations, such insurance to afford protection to the limit of not less than Three Million Dollars ($3,000,000.00).  The minimum coverage limit of such insurance required in this Lease (i) shall not be considered a limitation of liability hereunder; and, (ii) shall not be determinative as to the appropriate level of insurance for Tenant's operations.  Such liability insurance shall be primary and non-contributory with any other insurance that Landlord may or may not have relating to the Demised Premises.

 

  

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(d)

	
By no later than the Lease Commencement Date, Tenant shall provide Landlord with a certificate of insurance on the applicable "ACORD" form, which documents that Tenant has obtained and maintains in full force and effect all insurance policies required to be obtained by Tenant under this Section 11.  The insurance certificate shall name Landlord and any mortgagee of Landlord as an additional insured.

	
  

	
(e)

	
All insurance policies required to be maintained, and all certificates of insurance required to be provided by Tenant under this 11 shall contain a provision that no reduction, modification or cancellation of any coverage limits and/or endorsements for any reason, will be effective without thirty (30) days prior written notice to Landlord.

	
  

	
(f)

	
Tenant will observe and comply with the requirements of all insurance policies in force and effect at any time with respect to the Demised Premises, and of the insurers issuing such policies of which it has notice.  Representatives of such insurers may inspect the Demised Premises at reasonable times, upon reasonable prior notice to Tenant from Landlord.  Such inspection shall not constitute a safety inspection of Tenant's operations.

	
  

	
(g)

	
In the event that Tenant shall fail to comply with any of the obligations contained in this Section 11, Landlord, after thirty (30) days notice to Tenant and upon Tenant's failure to cure the same within such thirty (30) days, may, but shall not be required to, secure the required policies of insurance, and any cost and expense incurred by Landlord in connection therewith shall be payable by Tenant as Additional Rent.

	
  

	
(h)

	
Landlord and Tenant each hereby releases and relieves the other, and waives its entire right of recovery against the other, for loss or damage arising out of an incident insured against under this Lease, which perils occur in, on or about the Demised Premises, whether due to the negligence of Landlord or Tenant or their respective employees, agents, contractors, invitees or licensees.  Landlord and Tenant, upon obtaining the policies of insurance required in this Lease, shall give notice to the insurers that the foregoing mutual waiver of subrogation is contained in this Lease.

 

  

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12.           Casualty

It is agreed by and between the parties hereto that in case the Demised Premises, or the Building, shall be destroyed or damaged in part or in whole by fire or other elements, or by any other cause, to an extent which shall render the Demised Premises untenantable or unfit for occupancy for the purposes intended, the Tenant shall pay the accrued Rent to the time of such destruction.  Landlord shall, at its sole option, either (a) terminate this Lease, in which case Tenant shall have no further liability for future Rent, or (b) repair the Demised Premises with all reasonable speed, not exceeding one-hundred eighty (180) days from the date of said casualty.  If Landlord cannot represent that the repairs shall be substantially completed and Tenant may re-occupy the Demised Premises within one-hundred eighty (180) days from the date of said casualty (as determined by Landlord's engineer), then Tenant may terminate this Lease without further liability by either party.  Upon completion of such repairs, Tenant shall resume paying Rent as provided herein.  If, however, the Demised Premises shall be partially damaged by fire or other causes, then the damage shall be repaired by Landlord with all reasonable speed, and the Rent for the portions not usable by the Tenant shall be apportioned and abated for the term beginning with the date of such damage and ending when such damage shall have been repaired and such portions of the Demised Premises again made usable to the Tenant; provided, however, that if the repairs are not completed within one-hundred eighty (180) days of the date of said casualty, then Tenant may terminate this Lease without further liability of either party upon sixty (60) days written notice.  In no event shall Landlord have any liability or be required to repair or replace Tenant's merchandise, trade fixtures, furnishings, equipment, leasehold improvements, personal property, or other items of Tenant and the insurance proceeds on account thereof shall be sufficient for Landlord to repair the improvements.  Except to the extent specifically provided in this Lease, no damage or destruction of the Demised Premises, or any portion thereof, by fire or other casualty, nor the untenantability of the Demised Premises, or any portion thereof as a result of fire or other casualty, shall permit Tenant to terminate this Lease or surrender the Demised Premises, or any part thereof, nor shall relieve Tenant from its obligations to pay Rent. Tenant shall not be entitled to and hereby waives any and all claims against Landlord for any compensation or damage for loss of use of the Demised Premises, or any portion thereof, and/or for any inconvenience or annoyance resulting from any damage, destruction, repair or restoration including, without limitation, any injury (or death) to persons or damage to property, or interruption of Tenant's business, resulting from fire or other casualty, unless caused by the gross negligence or willful misconduct of Landlord, its employees or agents.

 

  

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13.           Condemnation

If the Building, the Land or any material part of either shall be condemned for public use, then and in that event, upon vesting of title to the same for such public use, this Lease shall terminate and Tenant shall have no right to any part of any condemnation award or award in lieu of condemnation relating to its leasehold estate or otherwise, except that Tenant shall have the right to prove and collect the value of the trade fixtures installed by it, including moving expenses. In the event of such termination of this Lease, all rent paid in advance shall be apportioned as of the date of such termination.  Notwithstanding the foregoing, if only a part of the Demised Premises shall be so taken and the part not so taken shall be appropriate and sufficient for the operation of Tenant's business, then Tenant shall retain the part not so taken and there shall be a pro rata reduction in the rent.  If, however, Tenant reasonably deems the partially condemned premises to be unacceptable for its use, then Tenant may terminate this Lease without further liability of either party by providing written notice of said cancellation within thirty (30) days of receipt of the notice of the taking or the effective date of the taking, whichever is first to occur, time being of the essence.

14.           Codes and Policies and General Requirements to Perform Work

	
  

	
Tenant shall warrant and ensure that all construction work which is or will be undertaken by it in connection with this Lease, or which is or will be located or associated with the use of the Demised Premises, shall comply with the applicable requirements of the New Jersey Uniform Construction Code.  Tenant shall submit to Landlord in advance all plans and specifications for Tenant's work for Landlord's approval which shall not be unreasonably withheld, delayed or conditioned.  Tenant is and shall be solely responsible for obtaining permits, requesting inspections, and obtaining such certificates of occupancy or approval as might be required by the New Jersey Uniform Construction Code, except for work to be performed by Landlord.

 

  

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15.           Quiet Enjoyment

The Landlord agrees that upon the payment of Rent by Tenant and observance and performance of all terms, covenants, and conditions required of Tenant by this Lease, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises.

16.           Tenant Obligations

Tenant agrees to take good and reasonable care of the Demised Premises (other than Landlord's obligations under Section 8) and surrender same upon termination of this Lease in a condition as reasonable use and wear thereof will permit.  During the term of this Lease, should physical damage be done to the Demised Premises or Building systems either through willful act or neglect, normal wear and tear or insured casualty excepted, which can be reasonably shown to have been caused by the Tenant's employees, clients, guests or assignees, Landlord may give written notice of such damage to Tenant as provided herein.  Should Tenant fail to cure any such damage within a reasonable time after receiving written notice, but in any event within thirty (30) days of receiving said written notice, Landlord may cure the same at the cost and expense of Tenant which Tenant shall pay to Landlord upon demand as Additional Rent.

17.           Assignment and Subletting

Tenant agrees that it shall neither assign its rights hereunder nor sublet the whole or any part of the Demised Premises without the consent in writing of Landlord first having been obtained, which consent shall not be unreasonably withheld, delayed or conditioned, except for an assignment or sublease to an Affiliate of Tenant, so long as Tenant remains jointly and severally liable with the assignee or sublessee for the obligations of tenant hereunder.  "Affiliate" means and refers to any legal entity controlling, controlled by, or under common control with, Tenant.  In the event of any such assignment or sublease, Tenant shall remain responsible for all obligations under this Lease, including, but not limited to, the payment of Rent.  Additionally, Tenant shall promptly pay to Landlord, one hundred percent (100%) of any consideration other than the Rent due under this Lease for or in connection with any assignment or sublease, however denominated, and one hundred percent (100%) of all of the Rent, as and when received, in excess of the rent required to be paid by tenant for the area assigned or sublet.  If Tenant requests Landlord's consent to sell, assign or sublet this Lease ("Transfer") then Tenant shall provide Landlord with a written description of all terms and conditions of the proposed Transfer, copies of the proposed transfer and assumption documentation, and the following information about the proposed transferee: name and address; satisfactory information about its business and landlord-tenant litigation history; its proposed use of the Demised Premises; banking, financial, and other credit information including but not limited to three (3) prior years profit and loss statements as may exist certified by an independent auditor; and general references.  In connection with a request for consent to Transfer, Landlord shall consent to or reject the request within thirty (30) days of receipt of Tenant's written request therefor and Landlord's receipt of all of the information required to be provided herein.  Tenant shall reimburse Landlord upon demand for its reasonable attorney' and professionals' fees incurred in connection with considering any request for reviewing the documentation for consent to a Transfer.  If Landlord consents to a proposed Transfer, then the proposed transferee shall deliver to Landlord a written agreement whereby it expressly assumes Tenant's obligations hereunder.  Any consent by Landlord to any such Transfer shall in no event be construed to relieve Tenant from obtaining the prior written consent of Landlord to any other or further Transfer.  Landlord may assign this Lease without the consent of Tenant.  Landlord shall provide Tenant notices of any assignment by Landlord and Tenant shall attorn to the assignee. Tenant shall, upon request, execute and deliver to Landlord an "estoppel certificate," setting forth that neither Landlord nor Tenant are in default of their respective obligations under this Lease and that all amounts due and owing by Tenant under this Lease have been paid as of the date of the estoppel certificate.

 

  

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18.           Alterations During Occupancy

Tenant shall have the right, option, and privilege of renovating or modifying the Demised Premises at its own cost and expense when in the Tenant's reasonable judgment same may be deemed necessary for its purpose.  Such renovations and modifications may include, but shall not be limited to, standard office partitions, railings, doors, gates, counters, lighting fixtures, signs and such other equipment or removable fixtures necessary to the Tenant's operation, painting and wall covering.  Tenant shall be responsible for obtaining all required permits and approvals and scheduling all required inspections, and shall submit to Landlord proof that these steps have been taken.  However, Tenant shall make no structural alterations, additions, or improvements to the Demised Premises without the prior written consent of the Landlord, which consent shall not be unreasonably withheld or delayed.  Upon expiration or earlier termination of this Lease, Landlord may, at its sole option, require Tenant, at Tenant's sole expense, to remove any or all alterations, additions or improvements made by or on behalf of Tenant, including but not limited to lab sinks, lab benches, exhaust hoods, lab cabinetry, and all associated wiring, plumbing, and duct work.

19.           [Reserved]

	
  

	
20.

	
Default by Tenant and Landlord's Remedies Upon Default

If Tenant defaults in the performance of any terms, covenants, and conditions of this Lease; or remains in possession for a Holdover Occupancy; or if Tenant shall file, or any creditor or other person shall file against Tenant, any petition in bankruptcy (and in the case of an involuntary petition, the petition is not dismissed within sixty (60) days) under any law, rule or regulation of the United States of America or of any State; or if a receiver of the business or assets of Tenant shall be appointed; or if a general assignment is made by Tenant for the benefit of creditors; or any sheriff, marshal, constable or other duly constituted public official takes possession of the Demised Premises, or any part thereof, by authority of any attachment or execution proceedings, and offers same for sale publicly, then Landlord may give written notice of such default to Tenant as provided herein and Tenant shall cure any such default in respect to which it has been given notice without delay.  If Tenant fails to cure (or begin to cure and continue to make good faith efforts to cure as soon as possible) any non-monetary default within thirty (30) days after written notice has been given it, then Landlord may cure the same at the cost and expense of Tenant.  Tenant shall pay to Landlord as Additional Rent such expense at the time at which the next month's Rent is due.  If Tenant fails to cure any material monetary default within ten (10) days after written notice, then Landlord may, at its sole option, terminate this Lease, in which event Tenant shall be liable for all Rent due for the remainder of the Initial Term or Renewal Term, as applicable, accelerate all Rent due hereunder, and take possession of the Demised Premises without further notice.  In the event of any such default by Tenant, Landlord may, at any time thereafter, and without limiting Landlord in the exercise of any additional rights or remedies that may be available to Landlord:

	
  

	
A.

	
Termination.  Terminate Tenant's right to possession by written notice to Tenant.  If Landlord has exercised such election after Tenant's default, then this Lease shall terminate immediately and Tenant shall immediately surrender possession of the Demised Premises to Landlord.  Notwithstanding such surrender of possession, Landlord shall be entitled to recover from Tenant:  (i) the amount of unpaid Rent earned at the time of such termination; plus (ii) any other amount necessary to compensate Landlord for all damages caused or incurred by Tenant's failure to perform its Lease obligations, or which would likely result therefrom, including, but not limited to, collection costs, reasonable attorneys' fees, reasonable costs of re-letting and refitting, and brokerage commissions.  At all times, Landlord shall have the obligation to mitigate its damages by making a good faith, best efforts attempt to re-let the Demised Premises.

 

  

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B.

	
Removal of Contents by Landlord.  With respect to any portion of the Demised Premises which is vacant or which is physically occupied by Tenant, Landlord may remove all persons and property therefrom, and store such property in a public warehouse or elsewhere at the cost of and for the account of Tenant.

	
  

	
C.

	
No Exclusive Right.  No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy herein or by law provided, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity or by statute.

	
  

	
D.

	
Other Remedies.  Notwithstanding any other provision herein, Landlord shall have any and all other remedies available under law and/or equity.

	
21.

	
Subordination of Landlord's Lien.  If requested, Landlord shall subordinate its liens to Tenant's lenders with respect to Tenant's personal property.

22.           Cumulative Rights; No Waiver

The various rights, remedies, options, and elections herein are cumulative, and the failure of a party to enforce strict performance of the conditions and covenants of this Lease or to exercise any election or option or to resort to have recourse to any remedy herein conferred or the acceptance by Landlord of any installment of rent after any breach by Tenant, in any one or more instances, shall not be construed or deemed to be a waiver or a relinquishment for the future of any such conditions and covenants, options, elections or remedies, but the same shall continue in full force and effect.

 

  

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23.           Governing Laws

The terms of this Lease shall be governed and enforced under the laws of the State of New Jersey, without giving effect to conflicts of law principles.

24.           Security Deposit

Upon execution of this Lease, Tenant shall deposit $22,500.00 ("Security Deposit"), with Landlord to be held as security for Tenant's timely payment of Rent and performance of its other obligations under this Lease and any renewals or extensions of the Lease.  If Tenant defaults in its payment of Rent or performance of its other obligations under this Lease after applicable notice and cure periods as set forth herein, then Landlord may use all or part of the Security Deposit for the payment of Rent or any other amount in default, or for the payment of any other amount that Landlord may spend or become obligated to spend by reason of Tenant's default, or for the payment of Landlord of any other loss or damage that Landlord may suffer by reason of Tenant's default. If Landlord so uses any portion of the Security Deposit, then Tenant will restore the security deposit to its original amount within five (5) business days after written demand from Landlord.  The Security Deposit shall not be a limitation on Landlord's damages or other rights under this Lease.  If Tenant pays the Rent and performs all of its other obligations under this Lease, Landlord will return the unused portion of the Security Deposit to Tenant within thirty (30) days after the end of the term.  Landlord may deliver the Security Deposit to a purchaser of the Building of which the Demised Premises is a part and be discharged from further liability with respect to it.

25.           Brokers

Each party represents and warrants to the other that no real estate broker is entitled to a commission, or other compensation, in connection with the negotiation and consummation of this Lease.  Landlord agrees to indemnify Tenant from any claims or liabilities asserted by any real estate broker or agent alleging participation in the transaction contemplated by this Lease and claiming authority from Landlord, based upon the actions of Landlord dealing with, directly or indirectly, any such real estate broker or agent.  Tenant agrees to indemnify Landlord from any claims or liabilities asserted by any real estate broker or agent alleging participation in the transaction contemplated by this Lease and claiming authority from Tenant, based upon the actions of Tenant dealing with, directly or indirectly, any such real estate broker or agent.  The provisions of this Section 25 shall survive the termination of this Lease.

 

  

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26.           Entire Agreement

This Lease contains the entire agreement between the parties regarding the subject matter hereof and supersedes any and all prior agreements, representations and understandings. No provision of this Lease may be amended or added to except by a written agreement executed by both parties. This Lease shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.

27.           Use and Occupancy

Tenant shall use and occupy the Demised Premises for the Permitted Use and for no other use.  Tenant may use and occupy the Demised Premises twenty-four (24) hours a day, seven (7) days a week subject to municipal ordinance.  Neither the Demised Premises nor any portion thereof shall be used for any operation, activity or business that is a public or private nuisance, an environmental hazard or creates extraordinary fire, explosive or other hazard.  Tenant shall comply with all legal requirements of any governmental authority relating to the use, condition, access to, and occupancy of the Demised Premises including but not limited to the Americans With Disabilities Act (AADA@).  The Demised Premises shall not be used for any use which is disreputable.

28.           Condition of Demised Premises.

Except as provided otherwise in this Lease, Tenant shall accept the Demised Premises "AS-IS" in the condition in which it is on the Lease Commencement Date and Landlord shall not be required to perform any work to prepare the Demised Premises for Tenant's use or occupancy.

29.           Environmental Laws

	
  

	
A.

	
Tenant agrees to comply with all environmental laws and regulations, including but not limited to, the Industrial Site Recovery Act (N.J.S.A. 13:1K-6 et seq. ("ISRA")) applicable to the Demised Premises or to the Tenant's use or occupancy thereof.  Tenant represents to Landlord that Tenant's NAICS Number is 541720.

 

  

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B.

	
Tenant hereby agrees to execute such documents as Landlord reasonably deems necessary and to cooperate in making such applications as Landlord reasonably requires to assure compliance with ISRA.  Tenant shall bear all costs and expenses incurred by Landlord associated with any required ISRA compliance resulting from Tenant's use of the Demised Premises, including, but not limited to, state agency fees, engineering fees, clean-up costs, filing fees and suretyship expenses.  Tenant shall promptly provide Landlord with copies of all material written correspondence, reports, notices, orders, findings, declarations and other materials pertinent to Tenant's compliance at the Demised Premises and the New Jersey Department of Environmental Protection ("NJDEP") requirements under ISRA as they are issued or received by the Tenant.

	
  

	
C.

	
Neither party hereto shall be permitted to generate, store, manufacture, refine, transport, treat, dispose of, or otherwise allow to be present on or about the Demised Premises, any Hazardous Substances except in accordance with all applicable laws and regulations.  As used herein, "Hazardous Substances" shall be defined as any "hazardous chemical", "hazardous substance" or similar term as defined in the Comprehensive Environmental Responsibility Compensation and Liability Act, as amended (42 U.S.C. 9601 et seq.), the New Jersey Industrial Site Recovery Act, as amended, (N.J.S.A. 13:1K-6 et seq.), the New Jersey Spill Compensation and Control Act, as amended, (N.J.S.A. 58:10-23.11b et seq.), any rules or regulations promulgated thereunder, or in any other present or future applicable federal, state or local law, rule or regulation dealing with environmental protection.

	
  

	
D.

	
Tenant agrees to indemnify and hold harmless Landlord and each mortgagee of the Demised Premises from and against any and all liabilities, damages, claims, losses, judgments, causes of action, costs and expenses (including reasonable attorneys' fees) which may be incurred by Landlord or any such mortgagee or threatened against the Landlord or such mortgagee, relating or arising out of any breach by Tenant of this Section 29, which indemnification shall survive the expiration or sooner termination of this Lease.

 

  

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E.

	
Landlord agrees to indemnify and hold harmless Tenant from and against any and all liabilities, damages, claims, losses, judgments, causes of action, costs and expenses (including reasonable attorneys' fees) which may be incurred by Tenant as a result of Landlord's violation of environmental laws affecting the Demised Premises and Building.

	
30.

	
Landlord's Inability to Perform.  Except as expressly provided to the contrary herein, this Lease and the obligation of Tenant to pay 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 reasonable control of the Landlord.  Landlord shall make reasonable efforts to minimize the effect of such delays.

	
31.

	
Indemnification.  Tenant shall indemnify, defend and hold harmless Landlord and any mortgagee of Landlord from and against any expense (including, without limitation reasonable attorneys' fees), loss, liability or damages suffered or incurred as a result of the negligent acts or omissions or the willful misconduct of Tenant or Tenant's agents, servants, invitees, contractors or employees.  The liability of Tenant to indemnify Landlord, as hereinabove set forth:

(a)           shall be in proportion to Tenant's allocable share of any joint negligence or willful misconduct with Landlord; and

(b)           shall not extend to any matter against which Landlord shall be effectively protected by insurance; provided, however, that if any such liability shall exceed the amount of the effective and collectable insurance in question, the said liability of Tenant shall apply to such excess.  If the obligations or liabilities of Tenant under the provisions of this Section 31 are qualified or contradicted by the specifically expressed provisions of other paragraphs or clauses of this Lease, then this Section 31 shall be deemed and construed to be modified or controlled by such other paragraphs or clauses.

 

  

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32.           Non-Liability of Landlord

Landlord shall not be liable for (and Tenant shall make no claim for) any property damage or personal injury which may be sustained by Tenant or any other person, 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, down spouts, or the like or of the electrical, gas, power, conveyor, refrigeration, sprinkler, air conditioning or heating systems, elevators or hoisting equipment; or by reason of the elements.

33.           Attorneys' Fees

Should Landlord incur legal fees in connection with Tenant's non-compliance or with Landlord's enforcement of this Lease, Tenant agrees to reimburse Landlord upon demand as Additional Rent for reasonable attorneys' fees and expenses.

34.           Rules of Construction

Any table of contents, captions, headings and titles in this Lease are solely for convenience of reference and shall not affect its interpretations.  This Lease shall be construed without regard to any presumption or other rule requiring construction against the party causing this Lease to be drafted.  If any words or phrases in this Lease shall have been stricken out or otherwise eliminated, whether or not any other words or phrases have been added, this Lease shall be construed as if the words or phrases so stricken out or otherwise eliminated were never included in this Lease and no implication or inference shall be drawn from the fact that said words or phrases were so stricken out or otherwise eliminated.  Each covenant, agreement, obligation or other provision of this Lease on Tenant's part to be performed, shall be deemed and construed as a separate and independent covenant of Tenant, and not dependent on any other provision of this Lease.  All terms and words used in this Lease, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender as the context may require.  If any of the provisions of this Lease, or the application thereof to any person or circumstances, shall to any extent be invalid or unenforceable, the remainder of this Lease, or the application of such provision or provisions to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, shall not be affected thereby, and every provision of this Lease shall be valid and enforceable to the fullest extent permitted by law.

 

  

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35.           WAIVER OF TRIAL BY JURY

LANDLORD AND TENANT WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS LEASE.  THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY LANDLORD AND TENANT AND TENANT ACKNOWLEDGES THAT NEITHER LANDLORD NOR ANY PERSON ACTING ON BEHALF OF LANDLORD HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT.  TENANT FURTHER ACKNOWLEDGES THAT IT HAS BEEN REPRESENTED IN THE SIGNING OF THIS LEASE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, AND THAT IT HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.  TENANT FURTHER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER PROVISION AND AS EVIDENCE OF SAME HAS EXECUTED THIS LEASE.

* * * * *

[End of text of Lease – the signature page follows]

 

  

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IN WITNESS WHEREOF, the parties hereto, duly authorized, have executed this Lease the day and year first above written.

	 	LANDLORD:	 
	 	 	 	 
	 	RCP BIRCH-LITTLE FALLS, LLC	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Richard Christopher Prant	 
	 	 	Richard Christopher Prant	 
	 	 	Managing Member	 
	 	 	 	 

 

 

	 	110 LITTLE FALLS DCLA, LLC	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ Daniel Cohen	 
	 	 	Daniel Cohen, Member	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Louis Antonucci	 
	 	 	Louis Antonucci, Member	 

 

 

	 	TENANT:	 
	 	 	 
	 	UNIGENE LABORATORIES INC.	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/ William Steinhauer	 
	 	 	William Steinhauer	 
	 	 	Vice President of Finance	 
	 	 	 	 

 

 

 

 

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