Document:

exv10wxjyxay

EXHIBIT 10(J)(A)

SCHEDULE OF CHANGE IN CONTROL EMPLOYMENT AGREEMENTS

          In accordance with the Instructions to Item 601 of Regulation S-K, the
Registrant has omitted filing Change in Control Employment Agreements by and
between P. H. Glatfelter Company and the following employees as exhibits to this
Form 10-K because they are identical to the Form of Change in Control Employment
Agreement by and between P. H. Glatfelter Company and certain employees, which
is filed as Exhibit 10 (j) to our Form 10-K for the year ended December 31,
2008.

David C. Elder

Thomas G. Jackson

John P. Jacunski

Debabrata Mukherjee

Dante C. Parrini

Martin Rapp

Mark A. Sullivan

William T. Yanavitch IIexv10wxqy

EXHIBIT 10(q)

COMPENSATORY ARRANGEMENTS WITH CERTAIN EXECUTIVE OFFICERS

     Set forth below are the
base salaries of the individuals for 2010 who will
be identified as named executive officers(1) of the Company in the Company’s
2010 proxy statement.

	 	 	 	 	 
	NAME AND TITLE	 	SALARY
	George H. Glatfelter II
	 	$	700,500	 
	Chairman and Chief Executive Officer
	 	 	 	 
	 
	 	 	 	 
	John P. Jacunski
	 	$	352,372	 
	Senior Vice President and Chief
Financial Officer
	 	 	 	 
	 
	 	 	 	 
	Dante C. Parrini
	 	$	535,327	 
	Executive Vice President and Chief
Operating Officer
	 	 	 	 
	 
	 	 	 	 
	Debarata
Mukherjee
	 	$	311,607	 
	Vice President and General Manager,
Specialty Papers Business Unit
	 	 	 	 
	 
	 	 	 	 
	Martin Rapp(1)
	 	$	383,954	 
	Vice President and General Manager,
Composite Fibers Business Unit
	 	 	 	 

 

			
	(1)	 	Mr. Rapp’s annual salary is 266,635 euros. The amount set forth above is
based on the currency exchange rate at December 31, 2009.

     The annual base salaries are subject to adjustment pursuant to the
Company’s employee compensation policies in effect from time to time. Each of
the above executive officers has a change in control employment agreement, which
is included as exhibits to this Form 10-K. Also, each executive officer
participates in the Company’s 2005 Long-Term Incentive Plan and in its
Management Incentive Plan, each of which are incorporated by reference as
exhibits to this Form 10-K.exv10wxry

EXHIBIT 10(r)

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

P.H. Glatfelter Company (the “Company”) pays fees to each non employee director
of the Company. Each non-employee director receives an annual retainer fee of
$35,000 (two-thirds in shares of Glatfelter common stock and one-third in cash)
and an additional $10,000 annual retainer if the non-employee director serves as
chairperson of either the Audit Committee or the Compensation Committee of the
board of directors. Each non-employee director receives an additional $5,000 if
they serve as chairperson of either the Finance Committee or the Nominating
and Corporate Governance Committee. Each non-employee director will also
receive $2,000 for attending the annual board retreat, and $1,500 for each
attended board or committee meeting. In addition, each non-employee director
will receive an annual Restricted Stock Unit award valued at $30,000 that will
vest ratably over a three-year period.exv10w1

EXHIBIT 10.1

March 13, 2010

Allianz SE

c/o Group Legal Services

Koeniginstr. 28

80802 Muenchen

Germany

Gentlemen:

     We
refer to your letter to us dated March 12, 2010 (the “Consent Letter”), a copy of which is
attached hereto, relating to certain matters under the Investment
Agreement, dated October 17, 2008 (as amended from time to time, the “Investment Agreement”), between The Hartford
Financial Services Group, Inc. and Allianz SE.

     For purposes of this letter, “Term Sheet” means the term sheet attached hereto setting forth
certain terms of the mandatory convertible preferred stock to be issued as part of the public
offering referred to in the Consent Letter (the “Public Offering”). Capitalized terms used and not
otherwise defined herein have the meanings assigned in the Consent Letter, the Term Sheet or the
Investment Agreement, as the case may be.

     As contemplated in paragraph (a) of the Consent Letter, we hereby confirm our mutual understanding
of the “Effective Price” and the “number of shares issued or deemed issued” (referred to as “I” in
the formula in Section 14(E) of the Warrants) for purposes of the anti-dilution adjustments in
Section 14(E). On the basis of the Term Sheet and for the purposes of the Warrant adjustment
according to Warrant Section 14(E), we agree with you that the “Effective Price” of the preferred
stock will be determined by reference to the “Reference Price” referred to in the Term Sheet and
that “I” shall be the number of shares for which such mandatorily convertible preferred stock may
be exchangeable at the “Minimum Conversion Rate” referred to in the Term Sheet.

     We refer to this mutual understanding as the “Antidilution Adjustment Convention.”

     Further to paragraph (a) of the Consent Letter, we hereby undertake, promptly following the pricing
of the convertible preferred stock referred to above in the Public Offering, to provide the actual
anti-dilution adjustments to the Warrants resulting from the application of the Antidilution
Adjustment Convention to the actual pricing terms of the convertible
preferred stock. Promptly
following the closing of the Public Offering, we will cause to be delivered to you documentation
evidencing the adjustment of the

Page 1 of 2

 

number of Warrant Shares and the Exercise Price in accordance with the application of the
Antidilution Adjustment Convention to the pricing terms of the convertible preferred stock.

     Please confirm your concurrence that this letter satisfies all of the conditions set forth in the
Consent Letter.

	 	 	 	 	 
	 	Very truly yours,

THE HARTFORD FINANCIAL SERVICES GROUP, INC.

 	 
	 	By:  	/s/ Robert Paiano 	 
	 	 	Name:  	ROBERT PAIANO 	 
	 	 	Title:  	SENIOR VICE PRESIDENT 	 
	 

Accepted and agreed to as of the date first above written:

	 	 	 	 
	ALLIANZ SE

 	 
	By:  	/s/ Rolf Klussman 	 
	 	Name:  	Rolf Klussman	 
	 	Title:  	Prokurist	 
	 
	By:  	/s/ Adrian Glaesner 	 
	 	Name:  	Adrian Glaesner	 
	 	Title:  	Prokurist	 
	 

Page 2 of 2

 

March 12, 2010

The Hartford Financial Services Group, Inc.

One Hartford Plaza

Hartford, CT 06155

U.S.A.

Dear Sirs:

          Reference is made to the Investment Agreement, dated October 17, 2008 (as amended from time to
time, the “Investment Agreement”), between The Hartford Financial Services Group, Inc. and
Allianz SE. Capitalized terms not otherwise defined in this letter shall have the meanings ascribed
to them in the Investment Agreement.

          You have informed us that the Company anticipates redeeming, for $3.4 billion plus accrued but
unpaid interest, all 3,400,000 shares of its Fixed Rate Cumulative Preferred Stock, Series E (the
“Series E Preferred Stock”) previously issued to the U.S. Department of the Treasury
pursuant to the Troubled Asset Relief Program Capital Purchase Program. In addition, you have
informed us that, in order to raise a portion of the capital necessary to redeem the Series E
Preferred Stock, the Company intends to launch a public offering as soon as practicable on or after
March 16, 2010, consisting of (i) shares of its Common Stock and (ii) shares of mandatorily
convertible preferred stock, together having an aggregate gross sales price between $1.7 and. $2.1
billion (such issuance of Common Stock and preferred stock, the “Public Offering”) and
(iii) senior debt securities of approximately $1.0 billion principal amount.

          We hereby confirm to you that we:

          (a) consent to the issuance of mandatorily convertible preferred stock in the Public Offering
for purposes of Section 4.8 of the Investment Agreement subject to the final terms of such
preferred stock being reasonably acceptable to us in light of the anti-dilution adjustments in the
Warrants and your prompt written confirmation of our mutual understanding of the “Effective Price’’
and the “number of shares issued or deemed issued” (referred to as “I” in the formula in Section
14(E) of the Warrants) for purposes of the anti-dilution adjustments in Section 14(E). On the basis
of the term sheet provided and for the purposes of the Warrant adjustment according to Warrant
section 14(E), we agree that the “Effective Price” of the preferred stock will be determined by
reference to the “Reference Price” referred to in the term sheet and “I” shall be the number of
shares for which such mandatorily convertible preferred stock may be exchangeable at the “Minimum
Conversion Rate”.

          (b) waive our preemptive rights under Section 4.15 of the Investment Agreement in connection
with the Public Offering, including any right to receive any further notice of, to participate in,
or to purchase from the Company an amount up to our Pro Rata Share of any class or series of
shares, rights or securities issued in connection with the Public Offering.

 

 

Allianz SE, p. 2

          This letter shall be governed by and construed in accordance with the laws of the State of New
York. For the avoidance of doubt, this letter relates solely to the proposed Public Offering, and
shall not constitute a waiver, modification or amendment of any terms of the Investment Agreement,
the Purchased Securities or the other Transaction Documents with respect to any transaction other
than the specific Public Offering referred to herein.

	 	 	 	 	 
	 	Yours very truly,

Allianz SE

 	 
	 	By:  	/s/ Paul Achleitner 	 
	 	 	Name:  	Paul Achleitner 	 
	 	 	Title:  	CFO 	 
	 
	 	 	 
	 	By:  	/s/ Stephen Theissing 	 
	 	 	Name:  	Stephen Theissing 	 
	 	 	Title:  	Group Treasurerexv10w30

Exhibit 10.30

LEASE

2981 Route 22

Patterson, New York

Lease dated February 27, 2003

ARTICLE I: REFERENCE DATA

1.1 Subjects Referred To

Each reference in this Lease to any of the following subjects shall be construed to
incorporate the data stated for that subject in this Article:

	 	 	 
	LANDLORD

	 	JRS Pharma LP
	 
	 	 
	LANDLORD’S NOTICE
ADDRESS

	 	JRS Pharma LP 

c/o John F. Koryto, Esq.
	 

	 	Miller, Johnson, Snell and Cumsikey, P.L.C.
	 

	 	303 N. Rose Street, Ste. 600
	 

	 	Kalamazoo, MI 49007-3850
	TENANT:

	 	Penwest Pharmaceuticals Co.
	 
	 	 
	TENANT’S NOTICE
ADDRESS:

	 	2981 Route 22 

Patterson, NY 12563
	 
	 	 
	COMMENCEMENT DATE:

	 	February 27, 2003
	 
	 	 
	BUILDING:

	 	2981 Route 22
	 

	 	Patterson, NY
	 
	 	 
	TENANT’S SPACE

	 	14,382 rentable square feet of rentable space in the Building, as shown on the floor plan attached as
Exhibit A hereto
	 
	 	 
	RENTABLE AREA OF
TENANT’S SPACE:

	 	14,382 rentable square feet
	 
	 	 
	INITIAL TERM:

	 	Two (2) years
	 
	 	 
	EXTENSION TERMS:

	 	As set forth in Section 2.4

 

 

	 	 	 
	TERM:

	 	Initial Term plus any Extension Terms, if exercised
	 
	 	 
	ANNUAL RENT:

	 	$12.00 per rentable square foot (i.e., $172,584.00 per annum and
$14,382.00 monthly), subject to the two-year abatement described in
Section 2.5
	 
	 	 
	OPERATING EXPENSES:

	 	Paid by Tenant pursuant to Section 2.5
	 
	 	 
	RENTABLE AREA OF THE 

BUILDING:

	 	49,623 rentable square feet
	 
	 	 
	PERMITTED USES:

	 	Laboratory, research and development, and general office
	 
	 	 
	COMMERCIAL GENERAL 

LIABILITY INSURANCE:

	 	Personal Injury and Property Damage Limits — $1,000,000 each

1.2 Exhibits. There are incorporated as a part of this
Lease:

EXHIBIT A — Floor Plan of the Premises

EXHIBIT B — Landlord’s Services

1.3 Table of Articles and Sections

	 	 	 	 	 
	ARTICLE I:  REFERENCE DATA
	 	 	1	 
	 
	 	 	 	 
	1.1 Subjects Referred To
	 	 	1	 
	1.2 Exhibits. There are incorporated as a part of this Lease:
	 	 	2	 
	1.3 Table of Articles and Sections
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II: PREMISES, TERM AND RENT
	 	 	4	 
	 
	 	 	 	 
	2.1 The Premises
	 	 	4	 
	2.2 Rights to Use Common Facilities
	 	 	4	 
	2.3 Landlord’s Reservations
	 	 	5	 
	2.4 Habendum; Tenant’s Space; Term; Extensions
	 	 	5	 
	2.5 Monthly Rent Payments
	 	 	5	 
	2.6 Additional Rent for Operating Expenses
	 	 	5	 
	 
	 	 	 	 
	ARTICLE III: DELIVERY AND ALTERATIONS
	 	 	9	 
	 
	 	 	 	 
	3.1 Delivery
	 	 	9	 
	3.2 Alterations and Additions
	 	 	9	 
	3.3 General Provisions Applicable to Construction
	 	 	9	 

- 2 -

 

	 	 	 	 	 
	ARTICLE IV: LANDLORD’S COVENANTS; INTERRUPTIONS AND DELAYS
	 	 	10	 
	 
	 	 	 	 
	4.1 Services Furnished by Landlord
	 	 	10	 
	4.2 Additional Services Available to Tenant
	 	 	10	 
	4.3 Roof, Wall, Floor Slab, and Facility Repair
	 	 	10	 
	4.4 Access
	 	 	10	 
	4.5 Heat and Air Conditioning 
	 	 	10	 
	4.6 Quiet Enjoyment
	 	 	11	 
	4.7 Interruptions and Delays in Service and Repairs, etc.
	 	 	11	 
	 
	 	 	 	 
	ARTICLE V: TENANT’S COVENANTS
	 	 	12	 
	 
	 	 	 	 
	5.1 Payments
	 	 	12	 
	5.2 Repair and Yield Up
	 	 	12	 
	5.3 Use 
	 	 	12	 
	5.4 Obstructions, Items Visible from Exterior; Rules and
Regulations
	 	 	13	 
	5.5 Safety Appliances
	 	 	13	 
	5.6 Assignment; Sublease
	 	 	13	 
	5.7 Indemnity; Insurance
	 	 	13	 
	5.8 Personal Property at Tenant’s Risk
	 	 	14	 
	5.9 Right of Entry
	 	 	14	 
	5.10 Personal Property Taxes
	 	 	14	 
	5.11 Signs
	 	 	14	 
	5.12 Compliance with Insurance Regulations
	 	 	14	 
	 
	 	 	 	 
	ARTICLE VI: CASUALTY AND TAKING
	 	 	15	 
	 
	 	 	 	 
	6.1 Termination or Restoration; Rent Adjustment
	 	 	15	 
	6.2 Eminent Domain
	 	 	15	 
	 
	 	 	 	 
	ARTICLE VII: DEFAULT
	 	 	16	 
	 
	 	 	 	 
	7.1 Events of Default
	 	 	16	 
	7.2 Damages 
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VIII: MISCELLANEOUS
	 	 	18	 
	 
	 	 	 	 
	8.1 Computation of Rental Floor Areas
	 	 	18	 
	8.2 Notice of Lease; Consent and Approval; Notices;
Bind and Inure
	 	 	18	 
	8.3 Failure to Enforce
	 	 	18	 
	8.4 Acceptance of Partial Payments of Rent; Delivery of Keys
	 	 	18	 
	8.5 Cumulative Remedies
	 	 	19	 
	8.6 Partial Invalidity
	 	 	19	 
	8.7 Self-Help
	 	 	19	 
	8.8 Estoppel Certificate
	 	 	19	 
	8.9 Waiver of Subrogation
	 	 	19	 
	8.10 All Agreements Contained
	 	 	20	 
	8.11 Brokerage
	 	 	20	 
	8.12 Submission Not an Option
	 	 	20	 
	8.13 Applicable Law
	 	 	20	 

- 3 -

 

	 	 	 	 	 
	8.14 Waiver of Jury Trial
	 	 	20	 
	8.15 Holdover
	 	 	20	 
	8.16 Force Majeure
	 	 	20	 
	8.17 Compliance with Laws and Insurance Policies
	 	 	21	 
	 
	 	 	 	 
	ARTICLE IX: RIGHTS OF PARTIES HOLDING PRIOR INTERESTS
	 	 	22	 
	 
	 	 	 	 
	9.1 Lease Subordinate 
	 	 	22	 
	9.2 Assignment of Rents
	 	 	22	 
	9.3 Implementation of Article IX
	 	 	23	 

ARTICLE II: PREMISES, TERM AND RENT

2.1 The Premises

Landlord hereby leases to Tenant and Tenant hereby hires from Landlord Tenant’s Space in the
Building, excluding exterior faces of exterior walls, the common stairways and stairwells,
elevators and elevator shafts, fan rooms, electric and telephone closets, janitor closets,
freight elevator vestibules, and pipes, ducts, conduits, wires and appurtenant fixtures serving
exclusively or in common other parts of the Building, but including all tenant special
installations, stairs, special flues, dumbwaiter shafts and special air conditioning
facilities, specially installed or leased telephone or electric switchboard, and if Tenant’s
Space includes less than the entire rentable area of any floor, excluding the common corridors,
elevator lobbies and any toilets located on such floor. Tenant’s Space with such exclusions is
hereinafter referred to as the “Premises.” In addition, Tenant shall have the right to use,
maintain and replace the modular structure currently adjacent to the Premises and to add, use,
maintain and replace a second, similar modular structure in the general vicinity of the
existing modular structure during the Term of this Lease. Tenant’s right to replace the modular
structures is subject to Landlord’s consent, which consent is not to be unreasonably withheld.
“Property” means the Building and the land on which the Building is located (the “Lot”).
Without limiting the foregoing, it is expressly agreed that the Premises include all personal
property and equipment owned by or for the benefit of Landlord and located in Tenant’s Space on
the date hereof, if any.

Tenant shall build a demising wall reasonably acceptable to Landlord and Tenant at
Tenant’s expense as shown on the floor plan attached as Exhibit A. Tenant shall
have no obligation to remove the demising wall at the expiration of the Term.

2.2 Rights to Use Common Facilities

Tenant shall have, as appurtenant to the Premises, rights to use in common, subject to
reasonable rules of general applicability to all occupants of the Building from time to time
made by Landlord of which Tenant is given notice, the lobbies, corridors, stairways, elevators
and loading platform of the Building, and the pipes, ducts, conduits, wires and appurtenant
meters and equipment serving the Premises in common with others.

- 4 -

 

2.3 Landlord’s Reservations

Landlord reserves the right from time to time, without unreasonable interference to Tenant’s use:
(a) to install, use, maintain, repair, replace and relocate for service to the Premises and other
parts of the Building, or either, pipes, ducts, conduits, wires and appurtenant fixtures, wherever
located in the Premises or Building, and (b) to alter or relocate any other common facility,
provided that substitutions are substantially equivalent or better. Installations, replacements and
relocations referred to in clause (a) above shall be located in the central core area of the
Building, above ceiling surfaces, below floor surfaces or within perimeter walls of the Premises,
to the extent the same can be accomplished without material additional cost to Landlord.

2.4 Habendum; Tenant’s Space; Term; Extensions

Tenant shall have and hold the Premises for a period commencing on the Commencement Date and
continuing for the Term unless sooner terminated as provided in Section 6.1 or Article VII.

Tenant shall have the right to extend the Term with respect to Tenant’s Space for three (3)
additional one (1) year periods, on all of the same terms and conditions (including Annual Rent
rate) as are in force at the expiration of the Initial Term, by providing Landlord with prior
written notice at least three (3) months before the end of the Initial Term. Upon the expiration of
the Extension Terms, the Term shall not be further extended or deemed extended, but shall expire
and terminate.

2.5 Monthly Rent Payments

Tenant shall pay, without notice, demand, offset or deduction, monthly installments of 1/12 of the
Annual Rent in advance on the first day of each month during the Term. Notwithstanding the
foregoing, Annual Rent for the first two (2) years of the Term shall be abated in its entirety, and
Tenant shall have no obligation to commence payments of Annual Rent until March 1, 2005. During
this two (2) year period, Tenant will nevertheless be responsible for its proportionate share of
Operating Expenses, pursuant to Section 2.6.

2.6 Additional Rent for Operating Expenses

This Lease is intended by the parties hereto to be a so-called “net” lease and, to the end that the
Annual Rent shall be received by the Landlord net of all costs and expenses related to the
Property, the Building and the Premises, except as expressly set forth herein, the Tenant agrees to
pay, in addition to the Tenant’s obligations with respect to real estate taxes, insurance premiums,
utilities costs, costs of repairs and maintenance and other costs which are specifically set forth
herein, to the Landlord within thirty (30) days after demand therefor, as Additional Rent, (a) any
and all charges, costs, expenses, and obligations of every kind and nature whatever as the Landlord
may from time to time actually incur in good faith with regard to the Premises or the operation or
maintenance thereof, except as otherwise expressly agreed in this Lease, including, without
limiting the generality of the foregoing, reasonable attorneys’ fees incurred by the Landlord in
connection with any amendments to, consents under and subleases and assignments of this Lease
requested by the Tenant and in connection with the enforcement of rights and pursuit of the
remedies of the Landlord under this Lease (whether during or after the expiration or termination of
the Term of this Lease), and (b) 28.98%, or such other percentage as

- 5 -

 

the rentable square footage of the Tenant’s Space bears to the rentable square footage of the
Building from time to time (“Tenant’s Proportionate Share”) of Operating Expenses (as hereinafter
defined). Operating Expenses shall be paid monthly in advance on the basis of Landlord’s reasonable
estimate of Operating Expense projections for the calendar year in question. On or before April 1
of the year following the calendar year in question, Landlord shall deliver to Tenant its annual
statement prepared in accordance with generally accepted accounting principles setting forth, in
reasonable detail, the Operating Expenses paid or incurred by Landlord during the preceding
calendar year. Within thirty (30) days after Tenant’s receipt of such statement, there shall be an
adjustment between Landlord and Tenant, with payment to or credit given by Landlord (as the case
may be) in order that Landlord shall receive the entire amount of Tenant’s share of such costs and
expenses for such period.

“Operating Expenses” shall mean any and all reasonable charges, costs and expenses which the
Landlord may from time to time actually incur with respect to the operation and maintenance of the
Building and the Property, including, without limitation, (i) making general repairs to and
undertaking maintenance of the Building and the Property; (ii) providing utilities, including heat,
water, sewer, electricity, air conditioning and ventilation to common areas of the Building used by
Tenant; (iii) providing daily cleaning and rubbish removal; (iv) providing watering, landscaping
and lawn care for the Property; (v) sanding, plowing and removal of snow and ice from driveways,
walkways and parking areas; and (vi) maintaining casualty and liability insurance with respect to
the Premises, the Building and the Property. Notwithstanding the foregoing, Operating Expenses
shall not include the following:

     (i) Any ground or underlying lease rental;

     (ii) Bad debt expenses and interest, principal, points and fees on debts or amortization
on any mortgage or other debt instrument encumbering the Building or the Lot;

     (iii) Costs which may be considered capital improvements, capital repairs, capital
changes or any other capital costs as determined under generally accepted accounting principles;
except that capital improvements made to effect cost savings or to comply with applicable law shall
be included, but shall be amortized over their useful life determined in accordance with generally
accepted accounting practices, with only the annual amortized portion being included in Operating
Expenses for any particular year;

     (iv) Rentals for items which if purchased, rather than rented, would constitute a capital
cost;

     (v) Costs incurred by Landlord to the extent that Landlord is reimbursed by insurance
proceeds or is otherwise reimbursed;

     (vi) Depreciation, amortization and interest payments, except on equipment, materials,
tools, supplies and vendor-type equipment purchased by Landlord to enable Landlord to supply
services Landlord might otherwise contract for with a third party where such depreciation,
amortization and interest payments would otherwise have been included in the charge for such third
party’s services, all as determined in accordance with generally accepted accounting

- 6 -

 

principles,
consistently applied, and when depreciation or  amortization is permitted or required,
the item shall be amortized over its reasonably anticipated useful life;

     (vii) Advertising and promotional expenditures, and costs of acquisition and maintenance of
signs in or on the Building identifying the owner of the Building or other tenants;

     (viii) Marketing costs, including leasing commissions, attorneys’ fees (in connection with
the negotiation and preparation of letters, deal memos, letters of intent, leases, subleases and/or
assignments), space planning costs, and other costs and expenses incurred in connection with lease,
sublease and/or assignment negotiations and transactions with present or prospective tenants or
other occupants of the Building;

     (ix) Costs, including permit, license and inspection costs, incurred with respect to the
installation of tenants’ or other occupants’ improvements or incurred in renovating or otherwise
improving, decorating, painting or redecorating vacant space for tenants or other occupants of the
Building;

     (x) Expenses in connection with services or other benefits which are not offered to
Tenant or for which Tenant is charged for directly;

     (xi) Costs incurred by Landlord due to the violation by Landlord or any tenant of the
terms and conditions of any lease of space in the Building;

     (xii) Management or administrative fees or overhead charges;

     (xiii) Salaries and other benefits paid to the employees of Landlord, except as allocated
reasonably for employees below the level of building manager whose duties relate solely or
primarily to Building maintenance;

     (xiv) Rent for any office space occupied by Building management personnel;

     (xv) Amounts paid to Landlord or to subsidiaries or affiliates of Landlord for goods
and/or services in the Building to the extent the same exceeds the costs of such goods and/or
services rendered by unaffiliated third parties on a competitive basis;

     (xvi) Landlord’s general corporate overhead and general and administrative expenses;

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

     (xviii) Services provided, taxes, attributable to, and costs incurred in connection with the
operation of any retail, restaurant and garage operations for the Building, and any replacement
garages or parking facilities and any shuttle services;

     (xix) All assessments and premiums which can be paid by Landlord in installments shall
be paid by Landlord in the maximum number of installments permitted by law and not

- 7 -

 

included as Operating Expenses except in the year in which the assessment or premium
installment is actually paid;

     (xx) Costs arising from the negligence or willful misconduct of Landlord or other tenants
or occupants of the Building or their respective agents, employees, licensees, vendors, contractors
or providers of materials or services;

     (xxi) Costs arising from Landlord’s charitable or political contributions;

     (xxii) Costs for sculpture, paintings or other objects of art; and

     (xxiii) Costs associated with the operation of the business of the entity which constitutes
Landlord as the same are distinguished from the costs of operation of the Building, including
accounting and legal matters, costs of defending any lawsuits with any mortgagee (except as the
actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or
hypothecating any of Landlord’s interest in the Building, costs incurred in connection with any
disputes between Landlord and its employees, between Landlord and Building management, or between
Landlord and other tenants or occupants.

In the event Landlord incurs costs or expenses associated with or relating to separate items or
categories or subcategories of Operating Expenses which were not part of Operating Expenses during
the entire calendar year 2002, Operating Expenses for calendar year 2002 shall be deemed increased
by the amount Landlord would have incurred during the calendar year 2002 with respect to such costs
and expenses had such separate items or categories or subcategories of Operating Expenses been
included in Operating Expenses during the entire calendar year 2002. As an illustration of the
foregoing, any additional annual premium resulting from any new forms of insurance, any increase in
insurance limits or coverage, or any decrease in deductibles in any year after calendar year 2002,
shall be deemed to be included in Operating Expenses for calendar year 2002.

Landlord shall keep, in the Building manager’s office, complete books and records regarding
Operating Expenses. All records shall be retained for at least three (3) years. Tenant shall have
the right to audit such records at any time upon reasonable written notice to Landlord. If such
audit reveals that Tenant’s pro rata share of any Operating Expenses has been overstated, then
Landlord shall immediately refund the overpayment plus interest at an annual rate equal to the then
average prime commercial rate from time to time established by the two largest national banks in
New York, New York, plus four percent (4%) (but not in excess of the maximum rate allowed by law)
(the “Interest Rate”) and if overstated by more than three percent (3%), Landlord shall promptly
upon demand reimburse Tenant for the costs of such audit.

[END OF ARTICLE II]

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ARTICLE III: DELIVERY AND ALTERATIONS

3.1 Delivery

The Premises shall be delivered to Tenant on the Commencement Date in their “As-Is”
condition.

3.2 Alterations and Additions

Tenant shall not make any alterations and additions to the Premises, except in accordance with
plans and specifications prepared by an architect, and constructed by a contractor, first approved
by Landlord, in writing, which approval shall not be unreasonably withheld, provided that Tenant
may make non-structural alterations to the Premises not visible from the exterior of the Premises,
the removal of which shall not damage the Premises, without Landlord’s approval thereof. Landlord
shall not be deemed unreasonable for withholding approval of any alterations or additions which (a)
involve or might affect any structural or exterior element of the Building or any area or element
or any facility serving any area of the Building, or (b) will require unusual expense to readapt
the Premises to normal laboratory, research and development or office use on Lease termination or
increase the cost of insurance or taxes on the Building or of the services called for by Section
4.1 and Landlord shall not be deemed unreasonable for withholding its approval of any contractor
who will not work in harmony with other contractors in the Building. All alterations and additions
shall become a part of the Building (excluding Tenant’s movable trade fixtures, equipment and other
personal property). All of Tenant’s alterations and additions and installations, furnishings and
equipment shall be coordinated with any work being performed by Landlord and shall be performed in
such manner and by such persons as shall maintain harmonious labor relations and not cause any
damage to the Building or Lot or interfere with Building operation. Tenant agrees to pay promptly
when due the entire cost of any work done on the Premises by Tenant, its agents, employees, or
independent contractors, and not to cause or permit any liens for labor or materials performed or
furnished in connection therewith to attach to the Premises or the Property and immediately to
discharge any such liens which may so attach.

3.3 General Provisions Applicable to Construction

All construction work required or permitted by this Lease by Landlord and Tenant shall be done in a
good and workmanlike manner and in compliance with all applicable laws and all lawful ordinances,
regulations and orders of governmental authority and insurers of the Building. Each party may
inspect the work of the other at reasonable times and shall promptly give notice of observed
defects. Each party authorizes the other to rely in connection with design and construction upon
approval and other actions on the party’s behalf by any person hereafter designated by notice to
the party relying.

[END OF ARTICLE III]

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ARTICLE IV: LANDLORD’S COVENANTS;

INTERRUPTIONS AND DELAYS

Landlord covenants during the Term:

4.1 Services Furnished by Landlord

To furnish a water supply (including all potable water supplies for Tenant’s employees) consistent
with Tenant’s customary volumetric requirements and in accordance with all applicable laws, and
wastewater treatment consistent with Tenant’s customary requirements and in accordance with all
applicable laws. To furnish services, utilities, facilities and supplies set forth in Exhibit
B equal in quality to those customarily provided by landlords in comparable buildings in the
Patterson, New York area (but at least to the standard currently in effect at the Building), or as
otherwise contemplated in the Transitional Services Agreement entered into by Landlord and Tenant
on or about the date hereof.

4.2 Additional Services Available to Tenant

To furnish, at Tenant’s expense, reasonable additional Building operation services which are usual
and customary in similar laboratory, research and development, and office buildings in the
Patterson, New York area upon reasonable advance request of Tenant at rates equal to the cost to
Landlord to provide the same.

4.3 Roof, Wall, Floor Slab, and Facility Repair

Except as otherwise provided in Article VI, to make such repairs to the roof, walls, floor slabs,
and common areas, and all electrical, plumbing, mechanical and other facilities and systems serving
the Building or any part thereof (including the Premises), whether located within the Premises or
not, as may be necessary to keep them in serviceable condition.

4.4 Access

Except in case of emergency and necessary Building shutdowns, to provide Tenant access to the
Premises twenty-four hours per day, 365 days per year.

4.5 Heat and Air Conditioning

To provide heat and air conditioning to the Premises to keep the Premises at customary temperatures
for comparable laboratory, research and development and office buildings in the Patterson, New York
area during business days (Monday through Friday between the hours of 8:00 a.m. and 6:00 p.m.) and
on Saturdays between the hours of 8 a.m. and 12 p.m., except legal holidays. In the event that
Tenant requests that Landlord provide heating or air conditioning at any time other than as
specifically stated herein, Tenant shall pay as additional rent to Landlord the cost to Landlord to
provide the same, and such payment shall be made within thirty days following invoice therefor.

- 10 -

 

4.6 Quiet Enjoyment

That Tenant on paying the rent and performing the tenant obligations in this Lease
shall peacefully and quietly have, hold and enjoy the Premises, subject to all of the
terms and provisions hereof.

4.7 Interruptions and Delays in Service and Repairs, etc.

Landlord shall not be liable to Tenant for any compensation or reduction of rent by reason of
inconvenience or annoyance or for loss of business arising from the necessity of Landlord or its
agents entering the Premises for any of the purposes in this Lease authorized, or for repairing the
Premises or any portion of the Building however the necessity may occur, unless, in each case the
same continues for longer than three business days and is due to Landlord’s negligence or willful
misconduct. In case Landlord is prevented or delayed, for not more than three business days, from
making any repairs, alterations or improvements, or furnishing any services or performing any other
covenant or duty to be performed on Landlord’s part, by reason of any cause reasonably beyond
Landlord’s control including without limitation, the causes set forth in Section 8.16 hereof as
being reasonably beyond Landlord’s control, Landlord shall not liable to Tenant therefor, nor
except as expressly otherwise provided in Section 6.1 shall Tenant be entitled to any abatement or
reduction of rent by reason thereof, nor shall the same give rise to a claim in Tenant’s favor that
such failure constitutes actual or constructive, total or partial, eviction from the Premises.

Landlord reserves the right to stop any service or utility system, when necessary by reason of
accident or emergency, or until necessary repairs have been completed; provided, however, that in
each instance of stoppage Landlord shall exercise diligence to eliminate the cause thereof. Except
in case of emergency repairs Landlord will give Tenant reasonable advance notice of any stoppage
and will use diligent efforts to avoid unnecessary inconvenience to Tenant by reason thereof.
Landlord also reserves the right to institute such policies, programs and measures as may be
necessary, required or expedient for the conservation or preservation of energy services or as may
be required to comply with applicable laws, codes, rules, regulations or standards.

[END OF ARTICLE IV]

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ARTICLE V: TENANT’S COVENANTS

Tenant covenants during the Term and such further time as Tenant occupies any part of the
Premises:

5.1 Payments

To pay when due all Annual Rent and all charges for Operating Expenses and all charges for
additional services rendered pursuant to Section 4.2. If any installment of Annual Rent or other
charge hereunder is paid more than five (5) days after the due date thereof, it shall bear interest
from such due date at an annual rate equal to the Interest Rate, which interest shall be
immediately due and payable as additional rent.

5.2 Repair and Yield Up

Except as otherwise provided in Article VI and Section 4.3, to keep the Premises in good order,
repair and condition, reasonable wear and tear only excepted, and all glass in windows and doors
(except glass in exterior walls of the Building unless the damage thereto is attributable to
Tenant’s negligence or misuse) of the Premises whole and in good condition with glass of the same
quality as that injured or broken. At the expiration or termination of the Term, Tenant shall yield
up Tenant’s Space, and in each case along with all alterations and additions (other than
alterations and additions which Landlord, at the time it granted consent to the alteration or
addition in question, required be removed at the expiration of the Term, which alterations or
additions Tenant shall remove, repairing any damage caused by such removal), in good order, repair
and condition, reasonable wear and tear excepted, first removing all goods and effects of Tenant
which Tenant elects to remove.

All articles of personal property and all trade fixtures, office machines and equipment (including
without limitation all those items listed in Section 1.1(b) of that certain Purchase Agreement
between Landlord and Tenant dated as of the date hereof (the “Purchase Agreement”)), furniture and
movable partitions owned by Tenant or installed by Tenant at its expense in Tenant’s Space shall be
and remain the property of Tenant and may be removed by Tenant at any time during the Initial Term
or applicable Extension Terms, or may be left by Tenant upon the expiration thereof.

Tenant currently has a wastewater discharge permit for the Building which it will transfer to
Landlord. Landlord shall maintain the wastewater discharge permit with its current terms and
conditions for the duration of the Term.

5.3 Use

Not to use the Premises for any purpose other than the Permitted Uses; not to permit in the
Premises any auction, fire, “going out of business” or bankruptcy sales; not to use the Premises
for any purpose which is disorderly, improper, offensive, or is liable to create a nuisance or is
contrary to law or ordinance, or which is liable to render necessary any alteration or addition to
the Building; not to injure or deface the Premises, Building or Lot; and not to make or permit any
waste; not to dump, flush, or in any way introduce any hazardous or toxic substances into the
sewage or other waste disposal system serving the Premises or the Building unless in compliance

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with law. Notwithstanding anything to the contrary, Landlord makes no representation that the
Premises are fit for a particular use or purpose including, without limitation, the Permitted Uses
specified herein, except as otherwise required by law.

5.4 Obstructions, Items Visible from Exterior; Rules and Regulations

Not to obstruct in any manner any portion of the Building not hereby leased or any portion thereof
or of the Lot used by Tenant in common with others; not without prior consent of Landlord to permit
the painting or placing of any signs, curtains, blinds, shades, awnings, aerials or flagpoles, or
the like, visible from outside the Premises; and to comply with all reasonable Rules and
Regulations now or hereafter made by Landlord, of which Tenant has been given notice, for the care
and use of the Building and Lot and their facilities and approaches.

5.5 Safety Appliances

To keep the Premises equipped with all safety appliances required by law or ordinance or any other
regulation of any public authority because of any use made by Tenant other than normal laboratory,
research and development and office uses, and to procure all licenses and permits so required
because of such use; provided the foregoing shall not require Tenant to incur any capital expense.

5.6 Assignment; Sublease

Tenant shall not assign or mortgage the Lease or make any sublease of the Premises without first
obtaining Landlord’s consent, which Landlord may withhold in its sole discretion. Notwithstanding
the foregoing, Tenant may, without Landlord’s prior written consent, but upon notice to Landlord,
sublet all or a portion of the Premises or assign Tenant’s interest in this Lease to: (i) a
subsidiary, affiliate, parent or other entity to Tenant which controls, is controlled by or is
under common control with Tenant, (ii) a successor entity to Tenant resulting from merger,
consolidation, non-bankruptcy reorganization or any governmental action, or (iii) a purchaser of
all or any significant portion of Tenant’s stock or assets.

5.7 Indemnity; Insurance

To indemnify, defend and hold harmless the Landlord from and against any and all liability, loss,
damage, cost, expense and claims (including, without limitation, reasonable attorneys’ fees), which
the Landlord may suffer, incur or be required to pay and which arises out of or relates in any
manner to: any breach or default on the part of Tenant in the payment, performance or observance of
any of the rents, covenants, agreements, or conditions on the part of Tenant to be paid, performed
or observed pursuant to the terms and provisions of this Lease; any act, omission or negligence of
Tenant or any of its respective agents, contractors, servants, employees, licensees or
undertenants; and any accident, injury, death or damage of whatever nature to any person, firm or
corporation occurring during the term of this Lease, in, on or about the Premises or any portion
thereof, or upon or under the sidewalks, driveways, roads or areas adjoining same except if due to
the negligence or willful misconduct of Landlord or its agents.

- 13 -

 

5.8 Personal Property at Tenant’s Risk

That all of the furnishings, fixtures, equipment, inventory, effects and property of every kind,
nature and description owned by Tenant which during the continuance of this Lease or any occupancy
of the Premises by Tenant may be on the Premises or elsewhere in the Building or on the Lot, shall
be at the sole risk and hazard of Tenant, and if the whole or any part thereof shall be destroyed
or damaged by fire, water or otherwise, or by the leakage or bursting of water pipes, steam pipes,
or other pipes, by theft or from any other cause, no part of said loss or damage is to be charged
to or be borne by Landlord (unless due to Landlord’s gross negligence or willful misconduct),
except that Landlord shall in no event be indemnified or held harmless or exonerated from any
liability to Tenant or to any person, for any injury, loss, damage or liability to the extent such
indemnity, hold harmless or exoneration is prohibited by law.

5.9 Right of Entry

To permit Landlord and its agents upon reasonable advance notice: to examine the Premises at
reasonable times and, if Landlord shall so elect, to make any repairs or replacements Landlord may
deem necessary; to remove, at Tenant’s expense, any alterations, additions, curtains, blinds,
shades, awnings, aerials, flagpoles, or the like not consented to in writing (if such consent was
required); and to show the Premises to prospective mortgagees at all reasonable times. In case of
emergency, Landlord or its representatives may enter the Premises at any time.

5.10 Personal Property Taxes

To pay promptly when due all taxes which may be imposed upon personal property owned by Tenant
(including without limitation, fixtures and equipment) and located in the Premises to whomever
assessed.

5.11 Signs

Not to erect any signs or lettering visible from the exterior of the Premises or attach any awnings
or canopies to the exterior of the Premises without obtaining Lessor’s prior written consent, which
shall not be unreasonably withheld. Notwithstanding the foregoing, Tenant may maintain the signs
currently at the Building to identify Tenant and Tenant’s Space. Tenant shall have no obligation to
remove any signs at the expiration or earlier termination of the Term.

5.12 Compliance with Insurance Regulations

Not to do or permit to be done any act or thing upon the Premises which will invalidate or be in
conflict with the terms of the Landlord’s current fire, boiler, sprinkler, water damage or other
insurance policies covering the Building and the fixtures and property therein; Tenant shall, at
its own expense, comply with all rules, regulations, and requirements of the National Board of Fire
Underwriters or any state or other similar body having jurisdiction.

[END OF ARTICLE V]

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ARTICLE
VI: CASUALTY AND TAKING

6.1 Termination or Restoration; Rent Adjustment

In case during the Term all or any substantial part of the Premises or the Building or the Lot are
damaged materially by fire or other casualty or are taken by eminent domain (and, in the event the
Premises are not substantially damaged or taken, Landlord elects to cease business operations at
the Building or to substantially demolish and reconstruct the Building), this Lease shall terminate
at either Tenant’s or Landlord’s election, which may be made notwithstanding that Landlord’s entire
interest may have been divested, by notice given to the other party within fifteen (15) days after
the election to terminate arises specifying the effective date of termination. The effective date
of termination specified shall not be less than thirty (30) nor more than sixty (60) days after the
date of notice of such termination. Unless terminated pursuant to the foregoing provisions, this
Lease shall remain in full force and effect following any such damage or taking, subject, however,
to the following provisions. If in any such case the Premises are damaged and this Lease is not so
terminated, Landlord shall use due diligence to put the Premises, or in case of taking what may
remain thereof (excluding in case of both casualty and taking any items installed or paid for by
Tenant) into proper condition for use and occupation subject to zoning and building codes and other
laws, rules and regulations then in effect. A just proportion of the Annual Rent and additional
rent according to the nature and extent of the injury shall be abated from the date of such
casualty or taking until the Premises or such remainder shall have been put by Landlord in such
condition; and in case of a taking which permanently reduces the area of the Premises, a just
proportion of the Annual Rent and additional rent shall be abated for the remainder of the Term.

6.2 Eminent Domain

Landlord reserves to itself any and all rights to receive awards made for damages to the Building
and Lot accruing by reason of exercise of eminent domain or by reason of anything lawfully done in
pursuance of public or other authority. Tenant hereby releases and assigns to Landlord all Tenant’s
rights to such awards, and covenants to deliver such further assignments and assurances thereof as
Landlord may from time to time request. Nothing contained herein shall be deemed to preclude Tenant
from obtaining, or to give Landlord any interest in, any separate award to Tenant for loss or
damage to Tenant’s equipment and other personal property or Tenant’s relocation costs.

[END OF ARTICLE VI]

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ARTICLE VII: DEFAULT

7.1 Events of Default

If any default by Tenant continues after notice, in case of Annual Rent or other sums due hereunder
for more than five (5) days, or in any other case for more than thirty (30) days and such
additional time not to exceed ninety (90) days, as is reasonably necessary to cure the default if
the default is of such a nature that it cannot reasonably be cured in thirty (30) days; or if
Tenant becomes insolvent or fails to pay its debts as they fall due; or if Tenant makes any trust
mortgage or assignment for the benefit of creditors; or if Tenant proposes any composition,
arrangement, reorganization or recapitalization with creditors; or if Tenant’s leasehold hereunder
or any substantial part of the property of Tenant is taken on execution or other process of law; or
if a receiver, trustee, custodian, guardian, liquidator or similar agent is appointed with respect
to Tenant, or if any such person or a mortgagee, secured party or other creditor takes possession
of the Premises or of any substantial part of the property of Tenant, and, in either case, if such
appointment or taking of possession is not terminated within ninety (90) days after it first
occurs; or if a petition is filed by or with the consent of Tenant under any federal or state law
concerning bankruptcy, insolvency, reorganization, arrangement, or relief from creditors; or if a
petition is filed against Tenant under any federal or state law concerning bankruptcy, insolvency,
reorganization, arrangement, or relief from creditors, and such petition is not dismissed within
ninety (90) days thereafter, or if Tenant dissolves or is dissolved or liquidated or adopts any
plan or commences any proceeding, the result of which is intended to include dissolution or
liquidation; then in any such case, Landlord may immediately, or at any time while such default
exists, terminate this Lease by notice to Tenant, in which event this Lease shall terminate and
come to an end on the date specified therein as fully and completely as if such date were the date
herein originally fixed for the expiration of the Term, and Tenant shall then quit and surrender
the Premises to Landlord, but Tenant shall remain liable as hereinafter provided.

7.2 Damages

In the event that this Lease is terminated under any of the provisions contained in Section 7.1,
Tenant covenants to pay forthwith to Landlord, as compensation, all sums which were due prior to
the date of such termination and Tenant shall pay on the days originally fixed herein for the
payment thereof amounts equal to the installments of rent and any and all other charges, if any, as
they would have become due if this Lease had not been terminated.

As a second alternative, at the election of Landlord, Tenant will, at the time of such termination,
pay to Landlord, as liquidated damages, the amount of the excess, if any, of the present value at
the time of termination of the total rent and other benefits which would have accrued to Landlord
under this Lease over and above the fair market value (in advance) of the Premises for the balance
of the Term.

Tenant agrees that Landlord may re-let the Premises or any part or parts thereof, either in the
name of Landlord or otherwise for a term or terms which may, at Landlord’s option, be less than or
exceed the period which would otherwise have constituted the balance of the Term and may grant
concessions or free rent for a reasonable time. The failure of Landlord to re-let the Premises or
any part thereof shall not release or affect Tenant’s liability. Any suit brought to

- 16 -

 

collect the amount of deficiency for any month shall not prejudice the right of Landlord to collect
the deficiency for any subsequent month by a similar proceeding. In the event the Premises are
re-let by Landlord, Tenant shall be entitled to a credit in the net amount of rent received by
Landlord, after deduction of all expenses incurred in connection with Tenant’s default, re-letting
the Premises and in collecting the rent.

Nothing contained in this Lease shall limit or prejudice the right of Landlord to prove for and
obtain in proceedings for bankruptcy or insolvency by reason of the termination of this Lease, an
amount equal to the maximum allowed by any statute or rule of law in effect at the time when, and
governing the proceedings in which, the damages are to be proved, whether or not the amount be
greater, equal to, or less than the amount of the loss or damages referred to above.

[END OF ARTICLE VII]

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ARTICLE VIII: MISCELLANEOUS

8.1 Computation of Rental Floor Areas

All calculations of floor areas in this Lease are deemed to be conclusive.

8.2 Notice of Lease; Consent and Approval; Notices; Bind and Inure

The titles of the Articles are for convenience only and are not to be considered in construing this
Lease. Tenant agrees not to record this Lease. Whenever any notice, approval, consent, request or
election is given or made pursuant to this Lease it shall be in writing. Communications shall be
addressed if to Landlord at Landlord’s Notice Address, Attention: John F. Koryto, Esq., or at such
other address as may have been specified by prior notice to Tenant, and if to Tenant, at Tenant’s
Notice Address, Attention: Chief Financial Officer, or at such other place as may have been
specified by prior notice to Landlord. Any communication so addressed shall be deemed duly served
if hand delivered by a recognized courier or overnight delivery service or if mailed by registered
or certified mail, return receipt requested and shall be deemed given when so delivered or 5 days
after deposited with the U.S. Postal Service. The obligations of this Lease shall run with the
land, and this Lease shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns, except that the original Landlord named herein and each
successive owner of the Premises shall be liable only for obligations accruing during its period of
ownership.

8.3 Failure to Enforce

The failure of Landlord or Tenant to seek redress for violation of, or to insist upon strict
performance of, any covenant or condition of this Lease, shall not be deemed a waiver of such
violation nor prevent a subsequent act which would have originally constituted a violation, from
having all the force and effect of an original violation. The receipt by Landlord of Annual Rent or
additional rent with knowledge of the breach of any covenant of this Lease shall not be deemed a
waiver of such breach. No provision of this Lease shall be deemed to have been waived by Landlord,
or by Tenant, unless such waiver be in writing signed by the party to be charged. No consent or
waiver, express or implied, by Landlord or Tenant, to or of any breach of any agreement or duty
shall be construed as a waiver or consent to or of any other breach of the same or any other
agreement or duty.

8.4 Acceptance of Partial Payments of Rent; Delivery of Keys

No acceptance by Landlord of a lesser sum than the Annual Rent then due shall be deemed to be other
than on account of the earliest installment of such rent due, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment as rent be deemed an accord
and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s
right to recover the balance of such installment or pursue any other remedy in this Lease provided.
The delivery of keys to any employee of Landlord or to Landlord’s agent or any employee thereof
shall not operate as a termination of this Lease or surrender of the Premises.

- 18 -

 

8.5 Cumulative Remedies

The specific remedies to which Landlord may resort under the terms of this Lease are cumulative. In
addition to other remedies provided in this Lease, Landlord shall be entitled to the restraint by
injunction of the violation or attempted or threatened violation of any of the covenants,
conditions or provisions of this Lease or to a decree compelling specific performance of any such
covenants, conditions or provisions.

8.6 Partial Invalidity

If any term 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 term to
persons or circumstances other than those as to which it is invalid or unenforceable shall not be
affected thereby, and each term of this Lease shall be valid and enforceable to the fullest extent
permitted by law.

8.7 Self-Help

If Tenant shall at any time default in the performance of any of its obligations under this Lease,
Landlord shall have the right (but shall not be obligated), following 30 days’ advance notice to
Tenant specifying that Landlord elects to exercise self help, and unless Tenant has commenced cure
during such 30 day period and pursues the cure to completion thereafter, to enter upon the Premises
and to perform such obligation notwithstanding the fact that no specific provision for such
substituted performance by Landlord is made in this Lease with respect to such default. In
performing such obligation, Landlord may make any payment of money or perform any other act. All
sums so paid by Landlord (together with interest at an annual rate equal to the Interest Rate) and
all necessary incidental costs and expenses in connection with the performance of any such act by
Landlord, shall be deemed to be additional rent under this Lease and shall be payable to Landlord
immediately on demand.

8.8 Estoppel Certificate

Landlord and Tenant agree from time to time, upon not less than fifteen (15) days’ prior written
request by the other, to execute, acknowledge and deliver to the requesting party a statement in
writing certifying that this Lease is unmodified and in full force and effect and that such party
is not aware of any uncured defaults of the other party under this Lease (or, if there have been
any modifications that the same is in full force and effect as modified and stating the
modifications and, if there are any known defaults, setting them forth in reasonable detail), and
the dates to which the Annual Rent and other charges have been paid. Any such statement delivered
pursuant to this Section 8.8 may be relied upon by a prospective purchaser or mortgagee of the
Premises or any prospective assignee of any mortgagee of the Premises. Failure of Landlord or
Tenant to respond to such request within such time shall be deemed an acknowledgment by such party
that the facts recited in the request are correct.

8.9 Waiver of Subrogation

Any insurance carried by either party with respect to the Premises or property therein or
occurrences thereon shall include a clause or endorsement denying to the insurer rights of

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subrogation against the other party to the extent rights have been waived by the insured prior to
occurrence of injury or loss. Each party, notwithstanding any provisions of this Lease to the
contrary, hereby waives any rights of recovery against the other for injury or loss due to hazards
covered by such insurance to the extent of the recovery received thereunder.

8.10 All Agreements Contained

This Lease contains all of the agreements of the parties with respect to the subject matter hereof
and supersedes all prior dealings between them with respect to such subject matter.

8.11 Brokerage

Each of Landlord and Tenant warrants that it has had no dealings with any broker or agent in
connection with the Lease, and covenants to defend, hold harmless and indemnify the other from and
against any and all cost, expense or liability for any compensation, commissions and charges
claimed by any broker or agent claiming by or through the indemnifying party with respect to
dealings in connection with this Lease or the negotiation thereof.

8.12 Submission Not an Option

The submission of this Lease or a summary of some or all of its provisions for examination does not
constitute a reservation of or option for the Premises or an offer to lease, and it is not
effective as a lease or otherwise until the execution by and delivery to both Landlord and Tenant.

8.13 Applicable Law

This Lease, and the rights and obligations of the parties hereto, shall be construed and enforced
in accordance with the laws of the State of New York.

8.14 Waiver of Jury Trial

Landlord and Tenant hereby waive trial by jury in any action, proceeding or counterclaim brought by
either of the parties hereto against the other, on or in respect to any matter whatsoever arising
out of or in any way connected with this Lease or the relationship of Landlord and Tenant
hereunder.

8.15 Holdover

Should Tenant holdover in occupancy of the Premises or any applicable part thereof after the
expiration of the Initial Term or the Extension Terms, as applicable, it shall be liable to
Landlord for each day of such holding over for rent equal to one and one-half times the Annual Rent
rate in effect at the end of the Initial Term or the Extension Terms for the space being held over,
as applicable, prorated on a daily basis, as Landlord’s sole remedy.

8.16 Force Majeure

Except as otherwise expressly set forth in this Lease, in any case where either party hereto is
required to do any act, delays caused by or resulting from Acts of God, war, civil commotion,

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fire, flood or other casualty, labor difficulties, shortages of labor, materials or
equipment, government regulations, unusually severe weather, or other causes beyond such party’s
reasonable control shall not be counted in determining the time during which such act shall be
completed, whether such time be designated by a fixed date, a fixed time or a “reasonable time,”
and such time shall be deemed to be extended by the period of such delay.

8.17 Compliance with Laws and Insurance Policies

Tenant, at its own expense, shall comply with all laws, orders and regulations of Federal, State,
County and City Authorities relating to its use of the Premises and its operations therein
(including without limitation those related to hazardous materials), provided, however, that the
foregoing shall not be interpreted to require Tenant to make any changes or modifications to the
Premises or Building, including without limitation, the structural components or mechanical systems
of the Building or Premises.

[END OF ARTICLE VIII]

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ARTICLE IX: RIGHTS OF PARTIES HOLDING PRIOR INTERESTS

9.1 Lease Subordinate

This Lease shall be subject and subordinate to any mortgage now or hereinafter placed on the Lot or
Building, or both, or any portion or portions thereof which are separately and together hereinafter
in this Article IX referred to as “the mortgaged premises”, and to each advance made or hereafter
to be made under any mortgage, and to all renewals, modifications, increases, consolidations,
replacements and extensions thereof and all substitutions therefor; provided any such mortgagee
recognizes this Lease and all of Tenant’s rights hereunder as though this Lease were prior to any
such mortgage. The foregoing provision shall be self-operative and no further instrument of
subordination or recognition shall be required. In confirmation of such subordination, Tenant shall
execute and deliver upon request a subordination, non-disturbance and attornment agreement in form
reasonably acceptable to Tenant and the applicable mortgagee.

Notwithstanding the foregoing, no mortgagee, or any purchaser at a foreclosure sale or
otherwise, shall be:

	 	(a)	 	liable for any act or omission of a prior Landlord (including the Landlord),
except to the extent the same is continuing; or
	 
	 	(b)	 	subject to any offset or defenses which the Tenant might have against any prior
landlord (including the Landlord), except to the extent the cause thereof
continues; or
	 
	 	(c)	 	bound by any agreement or modification of the Lease made without the consent
of the mortgagee; or
	 
	 	(d)	 	personally liable under this Lease and the mortgagee’s liability under the
Lease
shall be limited to the ownership interest of the mortgagee in the Premises.

Any claim by Tenant under the Lease against the mortgagee or such successor shall be satisfied
solely out of the mortgagee’s or such successor’s interest in the Premises or the proceeds from the
sale thereof and Tenant shall not seek recovery against or out of any other assets of mortgagee or
such successor.

9.2 Assignment of Rents

With reference to any assignment by Landlord of Landlord’s interest in this Lease, or the rents
payable hereunder, conditional in nature or otherwise, which assignment is made to the holder of a
mortgage on property which includes the Premises, Tenant agrees

	 	(a)	 	that the execution thereof by Landlord, and the acceptance thereof by the
holder of such mortgage, shall never be treated as an assumption by such holder of any
of the obligations of Landlord hereunder, unless such holder shall, by notice sent to
Tenant, specifically otherwise elect; and

- 22 -

 

	 	(b)	 	that, except as aforesaid, such holder shall be treated as having
assumed Landlord’s obligations hereunder only upon foreclosure of such holder’s
mortgage (or the acceptance of a deed in lieu of foreclosure) or the taking of
possession of the Premises.

9.3 Implementation of Article IX

Tenant agrees on request of Landlord to execute and deliver from time to time any agreement which
may reasonably be deemed necessary to implement the provisions of this Article IX.

[END OF ARTICLE IX]

- 23 -

 

     EXECUTED as a sealed instrument in two or more counterparts on the day and year first above
written.

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 	 	JRS Pharma LP	 	 
	 

	 	By:
	 	J. Rettenmaier America, Inc., General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Josef O. Rettenmaier
 

Name: Josef O. Rettenmaier
	 	 
	 

	 	 	 	Title:   President	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 	 	PENWEST PHARMACEUTICALS CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jennifer L. Good	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name: Jennifer L. Good	 	 
	 

	 	 	 	Title:   Sr. VP Finance & CFO	 	 

- 24 -

 

	ASSEMBLY
COM MAFG SHIPPING & RECEVING
WAREHOUSE
REST ROOMS
CAFÉ ASSEMBLY AREA A LOBBY
DemisingWall, including doorway

 

 

EXHIBIT B

LANDLORD’S SERVICES

	 	 	 
	AREAS OF RESPONSIBILITY:

	 	Landlord shall maintain the entire building including:
	 

	 	lobby, hallways, laboratories and all office areas
	 
	 	 
	GENERAL CLEANING:

	 	The following services shall be performed:

	 	 	OFFICE AREAS — THREE TIMES A WEEK:
	 
	 	 	Empty all wastebaskets and containers and remove to a designated area.

	 
	 	 	Replace basket liners if agreed.
	 
	 	 	Dust all desk tops, files, office equipment, picture frames, etc. within normal reach,
weekly.
	 
	 	 	Dry mop all resilient tile surfaces using chemically treated dry mops.
	 
	 	 	Vacuum all non-obstructed carpeted areas.
	 
	 	 	Vacuum all floor mats.
	 
	 	 	Clean entrance door glass.
	 
	 	 	Clean and sanitize drinking fountains.
	 
	 	 	LAVATORIES — THREE TIMES A WEEK:
	 
	 	 	Sweep and damp mop the floor using the proper disinfectants.
	 
	 	 	Wash and polish all mirrors, powder shelves and bright work.
	 
	 	 	Wash and disinfect all toilet bowls and urinals.
	 
	 	 	Wash and wipe dry both sides of the toilet seats with an approved germicidal detergent
leaving the seats in an upright position.
	 
	 	 	Thoroughly dust all dispensers and partitions within normal reach. Wash and disinfect
monthly.
	 
	 	 	Refill all dispensers with bathroom supplies.
	 
	 	 	Empty all trash receptacles and remove contents to a designated area.
	 
	 	 	MISCELLANEOUS:
	 
	 	 	Maintain grounds and walkways.

- 26 -

 

	 	 	Replace light bulbs in parking lots.
	 
	 	 	Snow and ice removal as needed.

- 27 -

 

November 5, 2004

JRS Pharma LP

c/o John F. Koryto, Esq.

Miller, Johnson, Snell and Cumsikey, P.L.C.

303 N. Rose Street, Ste. 600

Kalamazoo, MI 49007-3850

Re: Lease Agreement dated February 27, 2003

Dear Sir:

As per Article 2.4 of the above referenced lease agreement, Penwest Pharmaceuticals Co. is
exercising its right to extend the term of our Lease Agreement for another year, through February
26, 2006. This represents the first of three one-year Extension Terms provided for in the Lease
Agreement.

Please sign below (in duplicate, one copy for each party) acknowledging timely receipt of this
notification.

Sincerely,

Jennifer L. Good

Sr. Vice President, Finance and CFO

	 	 	 	 
	Notification by / Date

	 	Receipt Acknowledged by / Date	 
	 
	 	 	 
	/s/ Jennifer L. Good 11/5/04

	 	/s/ Stephen J. Berté, Jr.	 
	 

	 	 	 
	Jennifer L. Good

	 	Stephen J. Berté	 
	Sr. Vice President, Finance and CFO

	 	Sr. Vice President, General Manager	 
	Penwest Pharmaceuticals Co.

	 	JRS Pharma LP	 

			
	cc:	 	Heinz Petersen

Steve Berte’

 

 

Lease Amendment

2981 Route 22

Patterson, NY

Modification of Lease dated February 27, 2003

Effective February 27, 2005

This document is intended to augment and revise certain provisions in the original lease between
JRS Pharma LP (JRS) and Penwest Pharmaceuticals Co. (Penwest) dated February 27, 2003. During the
course of the initial lease term a few modifications were derived to deal with changing situations
and more closely match the Penwest utilization of the space. Areas of change include:

	1.	 	Tenant Space: Warehouse space is added to the tenant space to allow Penwest to store
material and establish a lab area Penwest Warehouse Space. The total square footage of this
area is 760 sq ft (38’ x 20’) and is to be billed at the $12.00 per rentable square foot rate
as set forth in the original lease.
	 
	2.	 	Operating Expenses: Paid by tenant pursuant to Section 2.6 to be modified to incorporate
the new square footage in the above mentioned Penwest Warehouse Space. Adding the 760 sq ft
changes the allocation from 28.98% to 30.51%.

	 	a.	 	Energy Costs- Electric: Per the Lease, total energy costs, comprised of two
NYSEG billings, were allocated based on the square foot allocation. In reviewing the
actual mapping of the two electrical bills with the building’s electrician (Losito),
it was determined that the NYSEG billed addressed to “Timerx Technologies” captures
all current electrical usage of Penwest, with the exception of the newly allotted
Penwest Warehouse Space. It is agreed that the electricity costs will not be subject
to the allocated operating expense calculation. Instead, Penwest will pay the total
electric cost of the “Timerx Technologies” bill and will not be responsible for the
allocated percentage on the other NYSEG bill. For the portion of the electric costs
related to the Penwest Warehouse Space, a meter has been attached to the Penwest
machinery to measure actual electricity usage. A log will be maintained of monthly
meter readings. The monthly usage times the blended demand rate will be used to
calculate an added electric charge for the Penwest Warehouse Space.
	 
	 	b.	 	Energy Costs – Gas: The NYSEG “Timerx Technologies” bill also includes the
total gas charges for the building. This portion of the bill is to be allocated to
Penwest based on the allocation percentage.

	3.	 	Asset replacement: An Atlas Copco air compressor, used to power Penwest HPLC units, HVAC
systems and dust collector systems was purchased by JRS in November, 2004. Penwest agreed to
pay for the usage of this piece of equipment as long as they occupy the space as per this
lease (up to the point the full purchase price has been

 

 

	 	 	recovered by JRS). The monthly equipment cost is to be $382.01, beginning December 2004, based
on an asset cost of $36,673 and an 8 year estimated life. Once Penwest vacates the space, they
will no longer be liable for this monthly charge.

	 	 	 	 
	JRS PHARMA L.P.

	 	PENWEST PHARMACEUTICALS CO.
	 
	 	 
	By/Date: March 4, 2005

	 	By/Date: March 7, 2005
	 
	 	 
	Name: /s/ Stephen J. Berté, Jr.
 

	 	Name: /s/ Jennifer L. Good
 

	 
	 	 
	Title: Sr. Vice President, General Manager

	 	Title Sr. Vice President Finance & CFO

 

 

November 14, 2005

JRS Pharma LP

c/o John F. Koryto, Esq.

Miller, Johnson, Snell and Cumsikey, P.L.C.

303 N. Rose Street, Ste. 600

Kalamazoo, MI 49007-3850

Re: Lease Agreement dated February 27, 2003

Dear Sir:

As per Article 2.4 of the above referenced lease agreement, Penwest Pharmaceuticals Co. is
exercising its right to extend the term of our Lease Agreement for another year, through February
26, 2007. This represents the second of three one-year Extension Terms provided for in the Lease
Agreement.

Please sign below (in duplicate, one copy for each party) acknowledging timely receipt of this
notification.

Sincerely,

Jennifer L. Good

Sr. Vice President, Finance and CFO

	 	 	 	 
	Notification by / Date

	 	Receipt Acknowledged by / Date	 
	 
	 	 	 
	/s/ Jennifer L. Good 11/14/05

	 	/s/ Stephen J. Berté, Jr.	 
	 

	 	 	 
	Jennifer L. Good

	 	Stephen J. Berté, Jr.	 
	Sr. Vice President, Finance and CFO

	 	Sr. Vice President, General Manager	 
	Penwest Pharmaceuticals Co.

	 	JRS Pharma LP	 

			
	cc:	 	Heinz Petersen

Steve Berte’

 

 

Lease Amendment

2981 Route 22

Patterson, NY

Modification of Lease dated February 27, 2003 (as amended on 2/27/05)

Effective September 1, 2006

This document is intended to amend certain provisions in the original lease between JRS Pharma LP
(JRS) and Penwest Pharmaceuticals Co. (Penwest) dated February 27, 2003, as amended on February 27,
2005. Areas of amendment include:

	4.	 	Tenant Space: Warehouse space is added to the tenant space to allow Penwest to store
material in an area adjacent to existing Penwest Warehouse Space. The total square footage of
this additional area is 400 sq ft (approximately 20’ x 20’) and is to be billed at the $12.00
per rentable square foot rate as set forth in the original lease.
	 
	5.	 	Operating Expenses: Paid by tenant pursuant to Section 2.6 to be modified to incorporate
the additional square footage noted in sec. 1 above. Adding the 400 sq ft changes the
allocation from 30.51% to 31.32%.

	 	 	 	 
	JRS PHARMA L.P.

	 	PENWEST PHARMACEUTICALS CO.
	 
	 	 
	By/Date: /s/ Stephen J. Berté, Jr.
 

	 	By/Date: /s/ Jennifer L. Good
 

	 
	 	 
	Name: Stephen J. Berté, Jr.

	 	Name: Jennifer L. Good
	 
	 	 
	Title: Sr. Vice President, General Manager

	 	Title: President & CEO

 

 

November 22, 2006

JRS Pharma LP

c/o John F. Koryto, Esq.

Miller, Johnson, Snell and Cumsikey, P.L.C.

303 N. Rose Street, Ste. 600

Kalamazoo, MI 49007-3850

Re: Lease Agreement dated February 27, 2003

Dear Sir:

As per Article 2.4 of the above referenced lease agreement, Penwest Pharmaceuticals Co. is
exercising its right to extend the term of our Lease Agreement for another year, through February
26, 2008. This represents the third of three one-year Extension Terms provided for in the Lease
Agreement.

Please sign below (in duplicate, one copy for each party) acknowledging timely receipt of this
notification.

Sincerely,

Jennifer L. Good

President and CEO

	 	 	 	 
	Notification by / Date

	 	Receipt Acknowledged by / Date	 
	 
	 	 	 
	/s/ Jennifer L. Good 11/22/06

	 	/s/ Heinz Petersen 11/27/06	 
	 

	 	 	 
	Jennifer L. Good

	 	H. Petersen	 
	President and CEO

	 	CFO	 
	Penwest Pharmaceuticals Co.

	 	JRS Pharma LP	 

			
	cc:	 	Heinz Petersen

Steve Berte’

 

 

AMENDMENT TO LEASE

     THIS AMENDMENT TO LEASE (this “Amendment”), is dated as of June 2, 2007 (the “Effective
Date”), and is by and between JRS PHARMA LP, a limited partnership, as landlord (“Landlord”), and
PENWEST PHARMACEUTICALS CO., a Washington corporation, as tenant (“Tenant”).

WITNESSETH:

     WHEREAS, Landlord and Tenant are parties to that certain lease, bearing a Commencement Date
as of February 27, 2003 for the lease of approximately 14,382 square feet in a building situated
at 2981 Route 22, Patterson, New York, as more particularly described in the lease (the “Original
Lease”). The Original Lease was amended by that certain Lease Amendment with an effective date of
February 27, 2005 thereby adding 760 square feet of space known as the Penwest Warehouse Space
(“Lease Amendment of February 2005”), and that certain Lease Amendment with an effective
date of September 1, 2006 thereby adding 400 square feet of space adjacent to the Penwest
Warehouse Space (“Lease Amendment September 2006”). The Original Lease, Lease Amendment of
February 2005 and Lease Amendment of September 2006 are hereinafter collectively referred to as
the “Lease,” and the total rentable square feet of the Lease is 15,542 square feet.

     WHEREAS, Landlord and Tenant desire to further amend the Lease pursuant to the terms,
conditions and provisions of this Amendment.

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

     1. Recitals Incorporated. The foregoing recitals are hereby incorporated as if fully set
forth hereunder.

     2. Amendments. Landlord and Tenant hereby agree to amend and restate the Lease
as follows:

          A. Effective March 1, 2008, the definition of “Annual Rent” set forth in Article 1.1 of the Lease shall be amended and restated in its entirety as follows:

               “ANNUAL RENT: $16.00 per rentable square foot per annum (i.e.
$248,672.00 per annum, and $20,722.67 monthly).”

          B. Article 2.4 of the Lease is amended and restated in its entirety as
follows:

               “Tenant shall have and hold the Premises for a period commencing on the Commencement Date
and continuing to February 28, 2009 (“Extended Term”), unless sooner terminated as provided in
Section 6.1 or Article VII.

 

 

               Tenant shall have the right to further extend the Extended Term with respect to Tenant’s
Space for an additional ten (10) month period until December 31, 2009, on all the same terms and
conditions, as hereby amended, as are in force at the expiration of the Extended Term, by providing
Landlord with prior written notice at least one (1) month before the end of the Extended Term. Upon
the expiration of the Extended Term, the Term shall not be further extended or deemed extended, but
shall expire and terminate.”

     3. No Other Amendment. Except as expressly set forth herein, there are no amendments or other
modifications to the Lease, and the Lease, as amended by this Amendment, shall remain in full
force and effect in accordance with its terms.

IN WITNESS WHEREOF, this Amendment has been executed by Landlord and Tenant as of the Effective
Date.

	 	 	 	 	 
	 	JRS PHARMA LP

 	 
	 	By:  	/s/ Stephen J. Berté, Jr.
 	 
	 	 	Name:  	STEPHEN J. BERTÉ, JR. 	 
	 	 	Title:  	Sr. Vice President, General
Manager 	 
	 	 	 	5/31/07	 
	 
	 	PENWEST PHARMACEUTICALS CO.

 	 
	 	By:  	/s/ Jennifer Good
 	 
	 	 	Name:  	Jennifer Good 	 
	 	 	Title:  	President & CEO 	 
	 	 	 	6/1/07	 
	 

2

 

January 9, 2009

JRS Pharma LP

c/o John F. Koryto, Esq.

Miller, Johnson, Snell and Cumsikey, P.L.C.

303 N. Rose Street, Ste. 600

Kalamazoo, MI 49007-3850

Re: Lease Agreement dated February 27, 2003, as amended June 2, 2007

Dear Sir:

As per Article 2.4 of the above referenced lease agreement, Penwest Pharmaceuticals Co. is
exercising its right to extend the term of our Lease Agreement for an additional ten month period,
through December 31, 2009.

Please sign below (in duplicate, one copy for each party) acknowledging timely receipt of this
notification.

Sincerely,

Jennifer L. Good

President and CEO

	 	 	 	 
	Notification by / Date

	 	Receipt Acknowledged by / Date	
	 
	 	 	
	/s/ Jennifer L. Good 1/9/09

	 	/s/ John F. Koryto 1/16/09	
	 

	 	 	
	Jennifer L. Good

	 	John F. Koryto	
	President and CEO

	 	Attorney & Secretary for	
	Penwest Pharmaceuticals Co.

	 	Rettenmairer America, Inc.	
	 

	 	General Partner of JRS Pharma LP	

			
	cc:	 	Steve Berte’

Beth Murray

Ben Palleiko

Ling Zeng

 

 

FOURTH AMENDMENT TO LEASE

     THIS FOURTH AMENDMENT TO LEASE (this “Amendment”), is dated as of November 3, 2009 (the
“Effective Date”), and is by and between JRS PHARMA LP, a Delaware limited partnership, as landlord
(“Landlord”), and PENWEST PHARMACEUTICALS CO., a Washington corporation, as tenant (“Tenant”).

WITNESSETH:

     WHEREAS, Landlord and Tenant are parties to that certain lease, bearing a Commencement Date as
of February 27, 2003 for the lease of approximately 14,382 square feet in a building situated at
2981 Route 22, Patterson, New York, as more particularly described in the lease (the “Original
Lease”). The Original Lease was amended by that certain Lease Amendment with an effective date
of February 27, 2005 thereby adding 760 square feet of space known as the Penwest Warehouse Space
(the “Lease Amendment of February 2005”), that certain Lease Amendment with an effective
date of September 1, 2006 thereby adding 400 square feet of space adjacent to the Penwest Warehouse
Space (the “Lease Amendment September 2006”) and that certain Amendment to Lease with an
effective date of June 2, 2007 thereby amending the annual rent due and extending the term of the
Original Lease (the “Lease Amendment June 2007”). The Original Lease, Lease Amendment of
February 2005, Lease Amendment of September 2006 and Lease Amendment of June 2007 are hereinafter
collectively referred to as the “Lease,” and the total rentable square feet of the Lease is
15,542 square feet (“Premises”).

     WHEREAS, Landlord and Tenant desire to further amend the Lease pursuant to the terms,
conditions and provisions of this Amendment.

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

     1. Recitals Incorporated. The foregoing recitals are hereby incorporated as if fully set
forth hereunder.

     2. Operating Expenses. Based on the 15,542 square feet comprising the Premises, Tenant’s
Proportionate Share of Operating Expenses, as defined in Section 2.6, is 31.32%.

     3. Amendments. Landlord and Tenant hereby agree to amend and restate the Lease as follows:

          A. Article 2.4 of the Lease is amended and restated in its entirety as follows:

               “Tenant shall have and hold the Premises for a period commencing on the Commencement Date and
continuing to December 31, 2010 (“Extended Term”), unless sooner terminated as provided in
Section 6.1 or Article VII.”

 

 

          B. Effective January 1, 2010, the definition of “Annual Rent” set forth in Article 1.1
of the Lease shall be amended and restated in its entirety as follows:

               “ANNUAL RENT: $13.50 per square foot per annum (i.e. $209,817.00 per annum, and $17,484.75 per
month).”

          C. Tenant shall have the right to further extend the Extended Term with respect to the
Premises for one (1) additional term of twelve (12) months (the “Renewal Term”) by
providing Landlord with written notice of Tenant’s intent to exercise this option to renew at least
one (1) month before the expiration of the Extended Term.

          D. The Renewal Term shall be on all the same terms and conditions, including Annual Rent as
are in force at the expiration of the Extended Term.

          E. Upon execution of this Amendment, Tenant shall pay to Landlord, as security for the
faithful performance of all terms, covenants and conditions of the Lease, as amended, a sum in the
amount of $17,484.75 (“Security Deposit”). Subject to Tenant’s satisfactory compliance with the
terms, covenants and conditions of the Lease, as amended, Landlord shall return the Security
Deposit to Tenant within thirty (30) days after the expiration or sooner termination of the
Extended Term or Renewal Term, as the case may be.

     4. No Other Amendment. Except as expressly set forth herein, there are no amendments or other
modifications to the Lease, and the Lease, as amended by this Amendment, shall remain in full force
and effect in accordance with its terms.

[Signatures on following page]

 

 

This Amendment has been executed by Landlord and Tenant as of the Effective Date.

	 	 	 	 	 
	 	LANDLORD

JRS PHARMA LP

 	 
	 	By:  	/s/ Stephen J. Berté, Jr.  11/3/09
 	 
	 	 	Name:  	Stephen J. Berté, Jr. 	 
	 	 	Title:  	Sr. Vice President, General
Manager 	 
	 
	 	TENANT

PENWEST PHARMACEUTICALS CO.

 	 
	 	By:  	/s/ Frank Muscolo  11/3/09
 	 
	 	 	Name:  	Frank Muscolo 	 
	 	 	Title:  	Controller & CAO

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