Document:

Exhibit 10.4

 

1/17/2012

 

Tenant:                             OMTHERA PHARMACEUTICALS, INC.

Premises:                     7,841 rentable square feet on second floor

 

AMENDED AND RESTATED LEASE

 

THIS LEASE (“Lease”) is entered into as of the 17th day of January, 2012, between McCARTHY ASSOCIATES LIMITED, a New Jersey limited partnership (“Landlord”) and OMTHERA PHARMACEUTICALS, INC., a corporation of the State of Delaware (“Tenant”).

 

In consideration of the mutual covenants stated below, and amending a lease dated November 29, 2011,and intending to be legally bound, the parties covenant and agree as follows:

 

PREMISES. Landlord leases to Tenant and Tenant leases from Landlord premises which the parties stipulate and agree is 7,841 rentable square feet as shown on the space plan attached hereto as Exhibit “A”  (“Premises”) located at Princeton Gateway, 707 State Road, Princeton, New Jersey 08540 (“Building”). Prior to delivery of the Premises, Landlord shall thoroughly clean the Premises, including cleaning the carpets and full dusting. Landlord shall provide a sufficient number of access key cards for Tenant’s employees for access to the Building and the Premises prior to the Commencement Date.

 

1.1 PERSONAL PROPERTY AND FIXTURES. During the term of this Lease Tenant shall have the use of the personal property and fixtures that the current tenant of the Premises, Bristol-Myers Squibb Company (“BMS”), elects to leave in the Premises. In addition Tenant shall have use of certain personal property from the BMS leased portion of first floor of the Building. Within one (1) business day of BMS vacating the Premises and removing certain personal property from the Premises, Landlord and Tenant shall prepare a list of the personal property and fixtures that Tenant shall have use of during the term of the Lease. This list shall be attached to this Lease as Exhibit “B.” Tenant accepts such personal property in “as is” and “where is” condition. Landlord makes no representations or warranties regarding the condition or suitability of such personal property and fixtures, provided that Landlord represents it has good and marketable title to the personal property free of liens or other encumbrances. Tenant shall pay Landlord a one-time payment in the amount of $10,000.00 for the use of such personal property and fixtures during the term of this Lease and during the term, if any, of any lease amendments. No further payments shall be made by Tenant for the use of such personal property and fixtures for as long as Tenant is leasing space in the Building. Tenant shall maintain the personal property and fixtures in good order and repair. At the termination of this Lease (or any amendment to this Lease) Tenant shall return this personal property and fixtures to Landlord in the same condition as it was at the beginning of the term of this Lease, normal wear and tear excepted.

 

1.2 BMS CONTINGENCY. The Premises are currently being leased to BMS. This Lease is contingent upon and subject to the execution and delivery by BMS to Landlord of a Termination of Lease and Surrender of Space Agreement.

 

2.                                      TERM. The Term of this Lease shall commence (“Commencement Date”) on the date which is the earlier of (a) Tenant’s occupancy thereof; or (b) one (1) business day after Landlord delivers the Premises to Tenant free of other tenants and occupants (including, without limitation, BMS) and in the condition required under Section 1 above. The target date for the Commencement Date is December 1, 2011. Both Landlord and Tenant shall use its best efforts to meet this targeted Commencement Date. If the Commencement Date does not occur prior to January 1, 2012, (other than due to the act or negligence of Tenant), Tenant may, at Tenant’s option, terminate this Lease.

 

The Term shall be for a period of thirty-six (36) months (“Term”) ending on the last day of the calendar month. The Commencement Date shall be confirmed by Landlord and Tenant by the execution of a Confirmation of Lease Term (“COLT”) in the form attached hereto as Exhibit “C.” If Tenant fails to execute or

 

 

objects to the COLT within ten (10) business days of its delivery, Landlord’s determination of such date shall be deemed accepted by Tenant.

 

3.                              BASE RENT; SECURITY DEPOSIT.

 

3.1 Commencing on the Commencement Date and on the first day of each month thereafter during the Term, Tenant shall pay to Landlord, without notice or demand and without set-off, deduction or counterclaim, the monthly installment of annual Base Rent as set forth below by (i) check sent to Landlord; or (ii) wire transfer of immediately available funds to the account at: Bank of America, Account No. 000 4050 0020, ABA # 026009593 such transfer to be confirmed by Landlord’s accounting department upon written request by Tenant. Base Rent, Additional Rent and all other sums due from Tenant under this Lease shall collectively be defined as “Rent.”

 

	
 
    	
 
    	
 
    	
 
    	
MONTHLY
    	
 
    	
ANNUAL
    	
 
    
	
LEASE YEAR
    	
 
    	
PER R.S.F.
    	
 
    	
INSTALLMENTS
    	
 
    	
BASE RENT
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
1
    	
 
    	
$
    	
17.00
    	
 
    	
$
    	
11,108.08
    	
 
    	
$
    	
133,297.00
    	
 
    
	
2
    	
 
    	
$
    	
17.00
    	
 
    	
$
    	
11,108.08
    	
 
    	
$
    	
133,297.00
    	
 
    
	
3
    	
 
    	
$
    	
17.00
    	
 
    	
$
    	
11,108.08
    	
 
    	
$
    	
133,297.00
    	
 
    

 

plus any charges set forth in Articles 4 and 5 below

 

3.2 Tenant shall pay (a)the first full month’s installment of Base Rent in the amount of $11,108.08 and Additional Rent in the amount of $1,143.48(or such initial partial month); (b) the Security Deposit (as defined below); and (c) as required by Section 1.1 above, $10,000.00 for the lease of the furniture and fixtures by three separate checks upon the Tenant’s execution and delivery of this Lease to Landlord. If any amount due from Tenant is not received by Landlord when due more than once in any twelve month period during the Term, Tenant shall also pay as Additional Rent (as defined in Article 4 hereof) a late fee of five percent (5%) of the total payment then past due (“Late Fee”). The Late Fee shall accrue on the initial date of a payment’s due date irrespective of any grace period granted hereunder. The waiver of the Late Fee for the first time during any twelve month period during the term shall be referred to as the “Late Fee Waiver”. Notwithstanding the Late Fee Waiver, Tenant shall pay as Additional Rent the Late Fee is any amount due from Tenant is not received by Landlord within ten (10) calendar days of the due date. For example, if once during any twelve month period during the Term, Landlord receives rent from Tenant on the third day of the month, no Late Fee will be assessed. But if Landlord receives such rent from Tenant on the fifteenth day of the month, Tenant will pay such Late Fee. In addition to the Late Fee, any payment not received by Landlord when due shall bear interest at a rate of 1% per month. There shall be no waiver of the interest due.

 

3.3 Tenant shall be required to pay a Security Deposit of $22,040.50 under this Lease (“Security Deposit”) as security for the prompt and complete performance by Tenant of every provision of this Lease. No interest shall be paid to Tenant on the Security Deposit. If Tenant fails to perform any of its obligations hereunder, beyond applicable notice and cure periods Landlord may use, apply or retain the whole or any part of the Security Deposit for the payment of (i) any Rent or other sums of money which Tenant may not have paid when due; (ii) any sum expended by Landlord in accordance with the provisions of this Lease; and/or (iii) any sum which Landlord may expend or be required to expend by reason of Tenant’s default. The use of the Security Deposit by Landlord shall not prevent Landlord from exercising any other remedy provided by this Lease or by law and shall not operate as either liquidated damages or as a limitation on any recovery to which Landlord may otherwise be entitled. If any portion of the Security Deposit is used, applied or retained by Landlord, Tenant agrees, within ten (10) days after the written demand therefor is made by Landlord, to deposit cash with the Landlord in an amount sufficient to restore the Security Deposit to its original amount. If Tenant shall fully comply with all of the provisions of this Lease, the Security Deposit, or any balance thereof, shall be returned to Tenant within thirty (30) days of Tenant’s surrender of the Premises to Landlord in accordance with paragraph 19 of this Lease. Upon the return of the Security Deposit to the original Tenant hereunder, or the remaining balance thereof, Landlord shall be completely relieved of liability with respect to the Security Deposit. In the event of a transfer of the Building, Landlord shall have the right to transfer the Security Deposit; and Landlord shall thereupon be released by Tenant from all liability for the return of

 

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such Security Deposit. Upon the assumption of such Security Deposit by the transferee, Tenant agrees to look solely to the new landlord for the return of said Security Deposit.

 

4.                                      ADDITIONAL RENT. Commencing on the Commencement Date, and in each calendar year thereafter during the Term, Tenant shall pay in advance on a monthly basis to Landlord Tenant’s Share of the “Recognized Expenses”, without deduction, counterclaim or set-off, to the extent (a) Operating Expenses exceed the Operating Expenses in calendar year 2012 (“Base Year”); and (b) Taxes to the extent Taxes exceed the Calendar Year 2012 Taxes (“Tax Stop”); and (c) snow and ice removal expenses to the extent the same exceed $0.21 per square foot which is the average snow and ice removal expense the Building 2008-2010 (“Snow Stop”). Tenant’s Share is 20.6%, which is (7,841)/(37,966). Recognized Expenses are (i) Operating Expenses which include: all reasonable operating costs and expenses related to the maintenance, operation and repair of the Building incurred by Landlord, including but not limited to management fee, not to exceed five percent (5%) of Rent; common area electric and Building electric for the HVAC units; and capital expenditures and capital repairs and replacements shall be included as operating expenses solely to the extent of the amortized costs of same over the useful life of the improvement in accordance with generally accepted accounting principles; and all insurance premiums payable by Landlord for insurance with respect to the Building and (ii) Taxes payable on the Building and (iii) costs relating to the removal of snow and ice.

 

Recognized Expenses shall in no event include: (i) depreciation or debt service, (ii) any fees paid to affiliates of Landlord in excess of market rates, (iii) any expenses for which Landlord has been reimbursed directly by a Tenant of the Building, (iv) brokerage expenses and expenses incurred to prepare space for a prospective tenant of the Building, (v) any expenses incurred by Landlord to prepare leasable space for occupancy by any person, (vi) capital expenses, except as expressly included above, (vii) payments of principal, interest and other charges on mortgages; (viii) costs for categories of services provided to other tenants but not to Tenant; (ix) salaries of executives or principals of Landlord; (x) interest or penalties for any failed payments by Landlord under any contract or agreement; (xi) costs incurred in connection with any judgment, settlement or arbitration award resulting from any negligence or willful misconduct of Landlord or its agents; (xii) costs of repairs, restoration or replacements occasioned by fire or other casualty in excess of reasonable insurance deductible amounts, or caused by the exercise of the right of eminent domain; (xiii) the cost to make improvements, alterations and additions to the common areas which are required in order to render the same in compliance with laws, rules, orders, regulations and/or directives as in effect and generally enforced as of the date of this Lease; (xiv) depreciation; (xi) investigation, remediation, abatement or cleanup of Hazardous Materials.

 

Each of the Recognized Expenses shall for all purposes be treated and considered as Additional Rent. Tenant shall pay, in monthly installments in advance, on account of Tenant’s Share of Recognized Expenses, the estimated amount of the increase of such Recognized Expenses for such year in excess of the Base Year, Tax Stop or Snow Stop, as the case may be, as determined by Landlord in its reasonable discretion. Prior to the end of the calendar year in which the Lease commences and thereafter for such successive calendar year (each, a “Lease Year”) or part thereof, Landlord shall send to Tenant a statement of projected increases in Recognized Expenses in excess of the Base Year, Tax Stop or Snow Stop and shall indicate what Tenant’s Share of Recognized Expenses shall be. As soon as administratively available, Landlord shall send to Tenant a statement of actual Recognized Expenses for the prior Lease Year showing the Tenant’s Share due from Tenant. In the event the amount prepaid by Tenant exceeds the amount that was actually due then Landlord shall issue a credit to Tenant in an amount equal to the overcharge, which credit Tenant may apply to future payments on account of Recognized Expenses until Tenant has been fully credited with the overcharge. If the credit due to Tenant is more than the aggregate total of future rental payments, Landlord shall pay to Tenant the difference between the credit and such aggregate total. In the event Landlord has undercharged Tenant, then Landlord shall send Tenant an invoice with the additional amount due, which amount shall be paid in full by Tenant within thirty (30) days of receipt.

 

In calculating the Recognized Expenses as hereinbefore described, if for thirty (30) or more days during the preceding Lease Year (including the Base Year) less than ninety-five percent (95%) of the rentable area of the Building shall have been occupied by tenants, then the Recognized Expenses attributable to the Property shall be deemed for such Lease Year to be amounts equal to the Recognized Expenses which would normally be expected to be incurred had such occupancy of the Building been at least ninety-five percent (95%) occupied throughout such year, as reasonably determined by Landlord (i.e. taking into account that certain expenses depend on occupancy, e.g. janitorial, and certain expenses do not , e.g. landscaping). Furthermore, if Landlord shall not furnish any item or

 

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items of Recognized Expenses to any portions of the Building because such portions are not occupied or because such item is not required by the tenant of such portion of the Building, for the purposes of computing Recognized Expenses, an equitable adjustment shall be made so that the item of Recognized Expenses in question shall be shared only by tenants actually receiving the benefits thereof.

 

Tenant or its representative shall have the right to examine Landlord’s books and records with respect to the items in the foregoing Landlord’s Statement during normal business at any time within sixty (60) days following the delivery by Landlord to Tenant of such Landlord’s Statement. Unless Tenant shall take written exception to any item contained therein within sixty (60) days after the delivery of same, such Landlord’s Statement shall be considered as final and accepted by Tenant. If Tenant disputes such Landlord’s Statement, Tenant shall pay the monies set forth thereon as a condition precedent to contesting said obligation.

 

As Additional Rent Tenant shall pay $198.55/month during the term of this Lease for reasonable access to and use of a reasonable portion of the server room as shown on Exhibit “F” attached hereto (“Server Room”). Tenant may use this Server Room for its computer and communications equipment (“Equipment”). Landlord reserves the right to relocate Tenant’s Equipment to space within the Premises at any time during the term of the Lease in the event a prospective tenant of the space containing the Server Room will not or cannot allow access to this Server Room. Landlord shall, at its sole cost and expense, pay for or reimburse Tenant for, all reasonable costs and expenses incurred in moving the Equipment to the Premises. Landlord shall reimburse Tenant within ten (10) business days of Landlord’s receipt of evidence reasonable satisfactory to it setting forth in reasonable detail the costs and expenses incurred by Tenant and a description of the services performed. After such relocation, the payment of the Additional Rent in the amound of $198.55/month shall terminate.

 

5.                                      ELECTRICITY CHARGES. Landlord shall not be liable for any interruption of any utility service for any reason unless caused by the gross negligence or willful misconduct of Landlord. Tenant shall pay to Landlord, as Additional Rent, all charges incurred by Landlord for electricity consumed with the Premises.

 

Landlord, during the hours of 8:00 a.m. and 6:00 p.m. on weekdays and 8:00 a.m. and 1:00 p.m. on Saturdays (“Working Hours”), excluding legal holidays, shall furnish the Premises with heat and air-conditioning in the respective seasons, and provide the Premises with electricity for lighting and usual office equipment. At any hours other than the aforementioned, such services will be provided at Tenant’s expense at $65.00 per hour.

 

An independent electrical engineering consultant selected by Landlord shall from time to time make a survey of the electric power demanded of the electric lighting fixtures and the electric equipment of Tenant used in the Premises to determine the average monthly electric consumption thereof. Until such survey is made, Tenant shall pay to Landlord as Additional Rent an established amount equal to $1,143.48 per month on the first day of each calendar month commencing on the Commencement Date. The estimate is based on $1.75 per square foot of the rentable area of the Premises. Absent manifest error, the findings of said consultant as to the average monthly electric consumption of Tenant shall be conclusive and binding on the parties, and Landlord may use such findings to adjust the electricity charges back to the Commencement Date. Tenant shall be responsible for replacing all light bulbs and all ballasts used by Tenant in the Premises.

 

Notwithstanding the foregoing, if (i) an interruption, curtailment, suspension or stoppage of an Essential Service (as said term is hereinafter defined) shall occur as a result of Landlord’s failure to perform its obligations under this Lease, excluding (A) a casualty, which shall be covered under Section 14 below, (B) any interruption, curtailment, suspension or stoppage occurring outside of the Property and beyond Landlord’s reasonable control (any such interruption of an Essential Service being hereinafter referred to as a “Service Interruption”), (ii) such Service Interruption continues for more than five (5) consecutive business days, and (iii) as a result of such Service Interruption, Tenant cannot conduct its business operations in the Premises, then all Base Rent and Additional Rent due hereunder with respect to the materially adversely affected portion of the Premises shall be abated for the period beginning on the expiration of such five (5) business day period and shall continue until the applicable Essential Service is restored such that Tenant can operate its business in the Premises. For purposes hereof, “Essential Services” shall mean the provision of (A) water and sanitary sewer, (B) HVAC service, (C) electricity required under this Lease, and (D) access to the Premises. In no event shall Tenant be permitted to make a claim against Landlord for indirect or consequential damages, including, without limitation, loss of earnings, as a result of a

 

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Service Interruption. If the Service Interruption is beyond the control of Landlord (whatever the cause of the Service Interruption), there shall not be any abatement of rent. Landlord shall maintain loss of income (loss of rent) insurance coverage for certain covered and insured perils. Tenant shall also maintain business interruption insurance for certain perils not covered by Landlord’s insurance.

 

6.                                      SIGNS; USE OF PREMISES AND COMMON AREAS. Landlord shall provide the original Tenant hereinabove named with standard identification signage on all Building directories and at the entrance to the Premises. No other signs shall be placed, erected or maintained by Tenant at any place upon the exterior of the Premises or Building. Tenant’s use of the Premises shall be limited to general office use and storage incidental thereto (“Permitted Use”). The Permitted Use shall be subject to all applicable laws and governmental rules and regulations and to all reasonable requirements of the insurers of the Building. Tenant shall not install in or for the Premises any equipment which requires more electric current than is standard. Tenant shall have the right, non-exclusive and in common with others, to use (i) the exterior paved driveways and walkways of the Building for vehicular and pedestrian access to the Building; (ii) the internal common area, including elevators; and (iii) the designated parking areas of the Premises for the parking of automobiles of Tenant and its employees and business visitors; provided Landlord shall have the right in its sole discretion and from time to time, to construct, maintain, operate, repair, close, limit, take out of service, alter, change and modify all or any part of the common areas of the Premises including, without limitation, reasonably restrict or limit Tenant’s utilization of the parking areas in the event the same become overburdened and in such case to equitably allocate on a proportionate basis or assign parking spaces among Tenant and other tenants in the Building; provided that in no event shall Tenant be allocated less than four (4) spaces per each 1,000 square feet of the Premises.

 

7.                                      ENVIRONMENTAL MATTERS.

 

(A) Hazardous Substances. Tenant shall not, except as provided in subparagraph (ii) below, bring or otherwise cause to be brought or permit any of its agents, employees, contractors or invitees to bring in, on or about any part of the Premises or Building any hazardous substance or hazardous waste in violation of law, as such terms are or may be defined in (x) the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. 9601 et seq., as the same may from time to time be amended, and the regulations promulgated pursuant thereto (“CERCLA”); the United States Department of Transportation Hazardous Materials Table (49 CFR 172.102); by the Environmental Protection Agency as hazardous substances (40 CFR Part 302); the Clean Air Act; and the Clean Water Act, and all amendments, modifications or supplements thereto; (y) the Industrial Site Recovery Act, formerly known as the Environmental Cleanup Responsibility Act, N.J.S.A. 13:1K-6 et seq., as the same may from time to time be amended, and the regulations promulgated pursuant thereto (“ISRA”); and/or (z) any other rule, regulation, ordinance, statue or requirement of any governmental or administrative agency regarding the environment (collectively, (x) (y) and (z) shall be referred to as an “Applicable Environmental Law”).

 

(B) NAICS Numbers.

 

(a) Tenant represents and warrants that Tenant’s NAICS number as designated by the Executive Office of the President, Office of Management and Budget, and as set forth herein as 424210, is correct. Tenant represents that the specific activities intended to be carried on in the Premises are in accordance with Article 6.

 

(b) Tenant shall not engage in operations at the Premises which involve the generation, manufacture, refining, transportation, treatment, storage, handling or disposal of “hazardous substances” or “hazardous waste” as such terms are defined under any Applicable Environmental Law. Tenant further covenants that it will not cause or permit to exist any “discharge” (as such term is defined under Applicable Environmental Laws) on or about the Premises.

 

(i) If Tenant’s operations at the Premises now or hereafter constitute an “Industrial Establishment” subject to the requirements of ISRA, then prior to: (1) closing operations or transferring ownership or operations of Tenant at the Premises (as defined under ISRA); (2) the expiration or sooner termination of this Lease; or (3) any assignment of this Lease or any subletting of any portion of the Premises, Tenant shall, at its expense, comply with all requirements of ISRA pertaining thereto. Without limitation of the foregoing, Tenant’s obligations shall include (i) the proper filing of an initial notice under N.J.S.A. 13:1K-9(a) to the NJDEP and (ii) the

 

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performance of all remediation and other requirements of ISRA, including without limitation all requirements of N.J.S.A. 13:1K-9(b) through and including (1).

 

(ii) In addition, if Tenant’s operations at the Premise now or hereafter constitute an “Industrial Establishment” subject to the requirements of ISRA, upon written request of Landlord, Tenants shall cooperate with Landlord in obtaining Applicable Environmental Laws approval of any transfer of the Building. Specifically in that regard, Tenant agrees that it shall (1) execute and deliver all affidavits, reports, response to questions, applications or other filing required by Landlord and related to Tenant’s activities at the Premises; (2) allow inspections and testing of the Premises during normal business hours; and (3) as respects the Premises, perform any requirement reasonably requested by Landlord necessary for the receipt of approvals under Applicable Environmental Law, provided the foregoing shall be at no out-of-pocket cost or expense to Tenant except for cleanup and remediation costs arising form Tenant’s violation of this Article 7.

 

(C)

 

(D) In the event that Tenant is not obligated to comply with Article 7(b)(ii) for any reason, including without limitation the inapplicability of ISRA to Tenant, then prior to the expiration or sooner termination of this Lease or any subletting of any portion of the Premises, Tenant shall, at Tenant’s expenses, and at Landlord’s option: obtain from the NJDEP a “non-applicability letter” confirming that the proposed termination, assignment or subletting shall not be subject to the requirements of ISRA. Any representation or certification made by Tenant in connection with the non-applicability letter request shall constitute a representation and warranty by Tenant in favor of Landlord and any misrepresentation or breach of warranty contained in Tenant’s request shall constitute a default under this Lease; provided, however, if a non-applicability letter is not issued due to factors relating solely to the Building or parties other than Tenant, then Tenant shall be deemed to have complied with this provision.

 

If reasonably indicated by a reputable environmental consultant engaged by Landlord, at Landlord’s expense, Tenant shall remove “hazardous waste” or “hazardous substances” attributable to Tenant’s occupancy at the Premises in a manner which complies with NJDEP requirements under ISRA, at Tenant’s expense, as if ISRA applied to Tenant and/or the Premises.

 

(E) Additional Terms. In the event of Tenant’s failure to comply in full with this Article, Landlord may, after written notice to Tenant and Tenant’s failure to cure within thirty (30) days of its receipt of such notice, at Landlord’s option, perform any and all Tenant’s obligations as aforesaid and all costs and expenses incurred by Landlord in the exercise of this right shall be deemed to be Additional Rent payable on demand and with interest at the Default Rate. The parties acknowledge and agree that Tenant shall not be held responsible for any environmental issue at the Premises unless such issue was caused by an action or omission of Tenant or its agents, employees, consultants or invitees. This Article 7 shall survive the expiration or sooner termination of this Lease.

 

8.                                      TENANT’S ALTERATIONS. Tenant will not cut or drill into or secure any fixture, apparatus or equipment or make alterations, improvements or physical additions (collectively “Alterations”) of any kind to any part of the Premises without first obtaining the written consent of Landlord, such consent not to be unreasonably withheld, conditioned or delayed. Notwithstanding anything in this Lease to the contrary, all furniture, moveable trade fixtures and equipment (including telephone, security and communication equipment; and provided the writing and cabling for such systems are also required to be removed by any applicable governing authority, then such system wiring and cabling for the telephone, security and communications equipment must also be removed) installed by or for Tenant, its assignees or sublessees shall be removed by Tenant at the termination of this Lease.

 

9.                                      ASSIGNMENT AND SUBLETTING. Tenant shall not, without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed, assign this Lease or any interest herein or sublet the Premises or any part thereof. Any of the foregoing acts without such consent shall be void. If at any time during the Term, Tenant desires to assign this Lease or sublet all or any part of the Premises, Tenant shall give notice to Landlord of such desire, including the name, address and contact party for the proposed assignee or subtenant, the effective date of the proposed assignment or sublease (including the proposed occupancy date by the proposed assignee or sublessee) and in the instance of a proposed sublease, the square footage to be

 

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subleased, a floor plan professionally drawn to scale depicting the proposed sublease area, and a statement of the duration of the proposed sublease (which shall in any and all events expire by its terms prior to the scheduled expiration of this Lease, and immediately upon the sooner termination hereof). Landlord may, at its option, exercisable by notice given to Tenant within twenty (20) days next following Landlord’s receipt of Tenant’s notice, elect to recapture the Premises if Tenant is proposing to sublet the entire Premises for the remainder of the current Term or terminate this Lease in the event of an assignment. Regardless of Landlord’s consent, no subletting or assignment shall relieve Tenant of Tenant’s obligation or alter the primary liability of Tenant to pay the Rent and to perform all other obligations to be performed by Tenant hereunder for the remainder of the then current Lease Term. Landlord shall be entitled to a $250.00 fee for consenting to any sublet or assignment.

 

The parties agree that it shall not be unreasonable for Landlord to withhold its consent to any assignment or sublease if: (i) the proposed assignee or sublessee shall have a net worth which is not comparable to Tenant’s; (ii) the proposed assignee or sublessee shall have no reliable credit history or an unfavorable credit history, or other reasonable evidence exists that the proposed assignee or sublessee will experience difficulty in satisfying its financial or other obligations under this Lease; (iii) the proposed assignee or sublessee, in Landlord’s reasonable opinion, is not reputable and of good character; (iv) the portion of the Premises requested to be subleased renders the balance of the Premises unleaseable as a separate area; (v) Tenant is proposing a sublease at a rental or subrental rate which is less than the then fair market rate for the portion of the Premises being subleased or assigned, or Tenant is proposing to assign or sublease to an existing tenant of the Building or another property owned by Landlord or by its partners, or to another prospect with whom Landlord or its partners, or their affiliates are then negotiating; (vi) the proposed assignee or sublessee will cause Landlord’s existing parking facilities to be reasonably inadequate, or in violation of code requirements, or require Landlord to increase the parking area or the number of parking spaces to meet code requirements, or the nature of such party’s business shall reasonable require more than four (4) parking spaces per 1,000 rentable square feet of floor space; or (vii) the nature of such party’s proposed business operation would or might reasonably permit or require the use of the Premises in a manner inconsistent with the “Permitted Use” specified herein, would or might reasonably otherwise be in conflict with express provisions of this Lease, would or might reasonably violate the terms of any other lease for the Building, or would, in Landlord’s reasonable judgment, otherwise be incompatible with other tenancies in the Building.

 

Notwithstanding the foregoing, Landlord’s consent shall not be required and the provisions of this Section 9 shall not apply with respect to either (i) transactions with an entity into or with which Tenant is merged or consolidated, or to which all or substantially all of Tenant’s assets are transferred, or (ii) transactions with any entity which controls or is controlled by Tenant or is under common control with Tenant. No transfer or assignment of any underlying ownership interest in Tenant shall be deemed an assignment or subletting requiring Landlord’s consent

 

10.                               LANDLORD’S RIGHT OF ENTRY. Landlord and persons authorized by Landlord may enter the Premises at all reasonable times upon reasonable advance notice (or any time without notice in the case of an emergency). Landlord shall not be liable for inconvenience to or disturbance of Tenant by reason of any such entry; provided, however, that in the case of repairs or work, such shall be done, so far as practicable, so as to not unreasonably interfere with Tenant’s use of the Premises.

 

11.                               REPAIRS AND MAINTENANCE. Tenant, at its sole cost and expense, shall keep and maintain the Premises in good order and condition, free of rubbish, and shall promptly make all non-structural repairs necessary to keep and maintain such good order and condition. Tenant shall have the option of replacing lights, ballasts, tubes, ceiling tiles, outlets and similar equipment itself or it shall have the ability to advise Landlord of Tenant’s desire to have Landlord make such repairs. If requested by Tenant, Landlord shall make such repairs to the Premise within a reasonable time of notice to Landlord and shall charge Tenant for such services at Landlord’s standard rate (such rate to be competitive with the market rate for such services). When used in this Article 11, the term “repairs” shall include replacements and renewals when necessary. All repairs made by Tenant or Landlord shall utilize materials and equipment which are at least equal in quality and usefulness to those originally used in constructing the Building and the Premises. Landlord shall maintain and repair the roof, structural elements, building systems and the common areas and exterior of the Building in good operating order and repair. Landlord shall provide the janitorial services for the Premises set forth on Exhibit “D.” Tenant will be responsible for all costs associated with the repair, maintenance and operation of any supplemental HVAC equipment installed within Tenant’s Premises.

 

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12.                               INSURANCE; SUBROGATION RIGHTS. Tenant shall obtain and keep in force at all times during the term hereof, at its own expense, commercial general liability insurance including contractual liability and personal injury liability and all similar coverage, with combined single limits of $3,000,000.00 on account of bodily injury to or death of one or more persons as the result of any one accident or disaster and on account of damage to property, or in such other amounts as Landlord may from time to time require. Tenant shall also require its movers to procure and deliver to Landlord a certificate of insurance naming Landlord as an additional insured. Tenant shall, at its sole cost and expense, maintain in full force and effect on all Tenant’s trade fixtures, equipment and personal property on the Premises, a policy of “special form” property insurance covering the full replacement value of such property. All liability insurance required hereunder shall not be subject to cancellation without at least thirty (30) days prior notice to all insureds, and shall name Tenant as insured and Landlord as additional insureds, and, if requested by Landlord, shall also name as an additional insured any mortgagee or holder of any mortgage which may be or become a lien upon any part of the Premises. Prior to the commencement of the Term, Tenant shall provide Landlord with certificates which evidence that the coverage required has been obtained for the policy periods. Tenant shall also furnish to Landlord throughout the Term replacement certificates at least thirty (30) days prior to the expiration dates of the then current policy or policies. All the insurance required under this Lease shall be issued by insurance companies authorized to do business in the State of New Jersey with a financial rating of at least an A plus as rated in the most recent edition of Best’s Insurance Reports and in business for the past five years. The limit of any such insurance shall not limit the liability of Tenant hereunder. If Tenant fails to maintain such insurance, Landlord may, but is not required to, procure and maintain the same, at Tenant’s expense to be reimbursed by Tenant as Additional Rent within ten (10) days of written demand. Any deductible under such insurance policy in excess of twenty-five thousand dollars ($25,000.00) must be approved by Landlord in writing prior to issuance of such policy. Tenant shall not self-insure without Landlord’s prior written consent. Each party hereto, and anyone claiming through or under them by way of subrogation, waives and releases any cause of action it might have against the other party and their respective employees, officers, members, partners, trustees and agents, on account of any loss or damage that is insured against under any insurance policy required to be obtained hereunder. Each party agrees that it shall cause its insurance carrier to endorse all applicable policies waiving the carrier’s right of recovery under subrogation or otherwise against the other party.

 

13.                       INDEMNIFICATION.

 

(a) Tenant shall defend, indemnify and hold harmless Landlord and its employees and agents from and against any and all third-party claims, actions, damages, liability and expense (including all reasonable attorney’s fees, expenses and liabilities incurred in defense of any such claim or any action or proceeding brought thereon) arising from any activity, work or things done, permitted or suffered by Tenant or its agents, licensees or invitees in or about the Premises or the Building contrary to the requirements of this Lease, and any negligence or willful act of Tenant or any of Tenant’s agents, contractors, employees or invitees. Without limiting the generality of the foregoing, Tenant’s obligations shall include any case in which Landlord shall be made a party to any litigation commenced by or against Tenant, its agents, subtenants, licensees, concessionaires, contractors, customers or employees, in which case Tenant shall defend, indemnify and hold harmless Landlord and shall pay all costs, expenses and reasonable attorney’s fees incurred or paid by Landlord in connection with such litigation, after notice to Tenant and Tenant’s refusal to defend such litigation, and upon notice from Landlord shall defend the same at Tenant’s expense by counsel satisfactory to Landlord.

 

(b) Landlord shall defend, indemnify and hold harmless Tenant and its respective employees and agents from and against any and all third-party claims, actions, damages, liability and expense (including all reasonable attorney’s fees, expenses and liabilities incurred in defense of any such acclaim or any action or proceeding brought thereon) arising from any activity, work or things done, permitted or suffered by Landlord in or about the Building contrary to the requirements of this Lease, any breach or default in the performance of any obligations of Landlord’s part to be performed under the terms of this Lease, and any negligence or willful act of Landlord or any of Landlord’s agents, contractors, employees or invitees. Without limiting the generality of the foregoing, Landlord’s obligations shall include any case in which Tenant shall be made a party to any litigation commenced by or against Landlord, its agents, subtenants, licensees, concessionaires, contractors, customers or employees, then Landlord shall defend, indemnify and hold harmless Tenant and shall pay all costs, expenses and reasonable attorney’s fees incurred or paid by Tenant in connection with such litigation, after notice to Landlord and

 

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Landlord’s refusal to defend such litigation, and upon notice from Tenant shall defend the same at Landlord’s expense by counsel satisfactory to Tenant.

 

14.                               FIRE DAMAGE. If (i) the casualty damage is of a nature or extent that, in Landlord’s reasonable judgment, the repair and restoration work would require more than two hundred ten (210) consecutive days to complete after the casualty (assuming normal work crews not engaged in overtime); or (ii) more than thirty percent (30%) of the total area of the Building is extensively damaged; or (iii) the casualty occurs in the last Lease Year of the Term and Tenant has not exercised a renewal right; or (iv) insurance proceeds are unavailable or insufficient, either party shall have the right to terminate this Lease and all unaccrued obligations of the parties hereto, by sending written notice of such termination to the other within thirty (30) days of the date of casualty. Such notice is to specify a termination date no less then fifteen (15) days after its transmission. In the event of damage or destruction to the Premises or any part thereof as set forth in subsections (i), (ii) or (iii) above neither party has terminated this Lease, Tenant’s obligation to pay Base Rent and Additional Rent shall be equitably adjusted or abated for such time as the Premises is not capable of being used by Tenant for its Permitted Use.

 

15.                               SUBORDINATION; RIGHTS OF MORTGAGEE. This Lease shall be subordinate at all times to the lien of any mortgages now or hereafter placed upon the Premises or Building and land of which they are a part without the necessity of any further instrument or act on the part of Tenant to effectuate such subordination. Tenant further agrees to execute and deliver within ten (10) days of demand such further instrument evidencing such subordination and attornment as shall be reasonably required by any mortgagee. If Landlord shall be or is alleged to be in default of any of its obligations owing to Tenant under this Lease, Tenant shall give to the holder of any mortgagee (“Mortgagee”) now or hereafter placed upon the Premises or Building notice by overnight mail of any such default which Tenant shall have served upon Landlord. Tenant shall not be entitled to exercise any right or remedy as there may be because of any default by Landlord without having given such notice to the Mortgagee. If Landlord shall fail to cure such default, the Mortgagee shall have forty-five (45) additional days within which to cure such default. Landlord shall use it best efforts to obtain a non-disturbance agreement from any Mortgagee.

 

16.                               CONDEMNATION. If in Landlord’s reasonable judgment a taking renders the Building unsuitable at Landlord’s option, this Lease shall, at either party’s option, terminate as of the date title to the condemned real estate vests in the condemnor, and the Rent herein reserved shall be apportioned and paid in full by Tenant to Landlord to that date and all rent prepaid for period beyond that date shall forthwith be repaid by Landlord to Tenant and neither party shall thereafter have any liability hereunder. If this Lease is not terminated after any such taking or condemnation, the Base Rent and the Additional Rent shall be equitably reduced in proportion to the area of the Premises which has been taken for the balance of the Term. Tenant shall have the right to make a claim against the condemnor for moving expenses and business dislocation damages to the extent that such claim does not reduce the sums otherwise payable by the condemnor to Landlord.

 

17.                               ESTOPPEL CERTIFICATE. Each party agrees at any time and from time to time, within ten (10) days after the other party’s written request, to execute and deliver to the other party a written instrument in recordable form certifying all information reasonably requested.

 

18.                               DEFAULT. If Tenant fails to pay any installment of Rent when due; provided, however, Landlord shall provide written notice of the failure to pay such Rent and Tenant shall have a five (5) business day grace period from its receipt of such Landlord’s notice within which to pay such Rent without creating a default hereunder. The late fee set forth in Article 3 hereof shall be due on the first day after such payment is due irrespective of the foregoing notice and grace period. If Tenant fails to bond over a construction or mechanics lien within twenty (20) days of demand; Tenant fails to observe or perform any of Tenant’s other non-monetary agreements or obligations herein contained within thirty (30) days after written notice specifying the default, or the expiration of such additional time period as is reasonably necessary to cure such default, provided Tenant immediately commences and thereafter proceeds with all due diligence and in good faith to cure such default; then, in any such event, an “Event of Default” shall be deemed to exist and Tenant shall be in default hereunder.

 

If an Event of Default shall occur, the following provisions shall apply and Landlord shall have, in addition to all other rights and remedies available at law or in equity, including the right to terminate the Lease, the rights and remedies set forth herein, which may be exercised upon or at any time following the occurrence of an Event of Default.

 

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1. Acceleration of Rent. By notice to Tenant, Landlord shall have the right to accelerate all Rent and all expense due hereunder and otherwise payable in installments over the remainder of the Term less (A) the amount of all rents received by Landlord through the date of judgment from a third party resulting from a re-letting of the Premises, and less (B) the present value of the future rents that Landlord reasonably expects it will receive through the end of the Term of this Lease from any third party resulting from a re-letting of the Premises; and the amount of accelerated rent to the termination date, without further notice or demand for payment, shall be due and payable by Tenant within five (5) days after Landlord has so notified Tenant, such amount collected from Tenant shall be discounted to present value using the Prime Interest Rate in affect on the date of the Event of Default. Additional Rent which has not been included, in whole or in part, in accelerated rent, shall be due and payable by Tenant during the remainder of the Term, in the amounts and at the times otherwise provided for in this Lease. 2. Landlord’s Damages. The damages which Landlord shall be entitled to recover from Tenant shall be the sum of: (i) all Base Rent and Additional Rent accrued and unpaid as of the termination date; and (ii)(a) all reasonable costs and expenses incurred by Landlord in recovering possession of the Premises, including legal fees and removal and storage of Tenant’s property, (ii) (b) the reasonable costs and expenses of restoring the Premises to the condition in which the same were to have been surrendered by Tenant as of the expiration of the Term, and (ii)(c) the costs of reletting commissions; and (iii) all Base Rent and Additional Rent otherwise payable by Tenant over the remainder of the Term as reduced to present value and all consequential damages relating to Tenant’s breach of this Lease. Less deducting from the total determined under subsections (i), (ii) and (iii) above, all Rent which Landlord receives from other tenant(s) by reason of the leasing of the Premises during any period falling within the otherwise remainder of the Term. 3 Landlord’s Right to Cure. Without limiting the generality of the foregoing, if Tenant shall fail to perform any of its obligations hereunder, Landlord may, in addition to any other rights it may have in law or in equity cure such default on behalf of Tenant and Tenant shall reimburse Landlord upon demand for any sums paid or costs incurred by Landlord in curing such default, including reasonable attorney’s fees and other legal expenses, together with interest at a rate of twelve percent (12%) (“Default Rate”) from the dates of Landlord’s incurring of costs and expenses. 4. Interest on Damage Amounts. Any sums payable by Tenant hereunder, which are not paid after the same shall be due, shall bear interest at the Default Rate. 5. No Waiver by Landlord. No delay or forbearance by Landlord in exercising any right or remedy hereunder, or Landlord’s undertaking or performing any act or matter which is not expressly required to be undertaken by Landlord shall be construed, respectively, to be a waiver of Landlord’s rights or to represent any agreement by Landlord to undertake or perform such act or manner thereafter. Waiver by Landlord of any breach by Tenant of any covenant or condition herein contained (which waiver shall be effective only if so expressed in writing by Landlord) or failure by Landlord to exercise any right or remedy in respect of any such breach shall not constitute a waiver or relinquishment for the future of Landlord’s right to have any such covenant or condition duly performed or observed by Tenant, or of Landlord’s rights arising because of any subsequent breach of any such covenant or condition nor bar any right or remedy of Landlord in respect of such breach or any subsequent breach.

 

19.                               SURRENDER. Tenant shall, at the expiration of the Term, promptly quit and surrender the Premises in good order and condition and in conformity with the applicable provisions of this Lease. Tenant shall have no right to hold over beyond the expiration of the Term and in the event Tenant fails to deliver possession of the Premises as herein provided, Tenant’s occupancy shall not be construed to effect or constitute anything other than a tenancy at sufferance. During the first thirty (30) days of occupancy beyond the expiration of the Term the amount of rent owed to Landlord by Tenant shall automatically become one hundred fifty percent (150%) the sum of the Rent as those sums are at that time calculated under the provisions of the Lease. If Tenant fails to surrender the space within thirty (30) days of the termination date, Landlord may elect to automatically extend the Term for an additional month with a Rent of two hundred percent (200%) the sum of the Rent as those sums are at that time calculated under the provisions of the Lease. The acceptance of rent by Landlord or the failure or delay of Landlord in notifying or evicting Tenant following the expiration or sooner termination of the Term shall not create any tenancy rights in Tenant and any such payments by Tenant may be applied by Landlord against its costs and expenses, including attorney’s fees, incurred by Landlord as a result of such holder.

 

20.                               RULES AND REGULATIONS. At all times during the Term, Tenant, its employees, agents, invitees and licensees shall comply with all rules and regulations specified on Exhibit “E” attached hereto and made a part hereof, together with all reasonable rules and regulations as Landlord may from time to time promulgate provided they do not materially increase the financial burdens of Tenant or take away any rights specifically

 

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provided to Tenant in this Lease. In the event of an inconsistency between the rules and regulations and this Lease, the provisions of this Lease shall control.

 

21.          GOVERNMENTAL REGULATIONS. Tenant shall, in the use and occupancy of the Premises and the conduct of Tenant’s business or profession therein, at all times comply with all applicable laws, ordinances, orders, notices, rules and regulations of the federal, state and municipal governments. Landlord shall be responsible for the compliance with Title III of the Americans with Disabilities Act of 1990, 42 U.S.C. chapter 126 section 12181 et seq and its regulations (collectively “ADA”) (i) as to the design and construction of exterior and interior common areas (e.g. sidewalks and parking areas); and (ii) with respect to the initial design and construction by Landlord. Except as set forth above in the initial sentence hereto, Tenant shall be responsible for compliance with the ADA in all other respects concerning the use and occupancy of the Premises which compliance shall include, without limitation (i) provision for full and equal enjoyment of the goods, services, facilities, privileges, advantages or accommodations of the Premises as contemplated by and to the extent required by the ADA; (ii) compliance relating to requirements under the ADA or amendments thereto arising after the date of this Lease; and (iii) compliance relating to the design, layout, renovation, redecorating, refurbishment, alteration, or improvement to the Premises made or requested by Tenant at any time following completion of the Landlord’s Work, if any. Tenant shall pay to the Princeton Township Bureau of Fire Safety all inspection fees for the Premises and shall correct, at Tenant’s cost and expense, any violations of the Uniform Fire Code, N.J.A.C. 5:70-1 et seq. due to Tenant’s act or negligence.

 

22.          NOTICES. Wherever a notice is required, notice shall be deemed to have been duly given if in writing and either: (i) personally served; (ii) delivered by prepaid nationally recognized overnight courier service; (iii) delivered by USPS registered or certified mail/return receipt requested, postage prepaid; (iv) facsimile with a copy mailed by first class USPS mail; or (v) email with evidence of receipt and delivery of a copy of the notice by USPS first class mail; in all such cases addressed to the parties at the following addresses:

 

	
Tenant:
    	
 
    	
Christian   S. Schade
    
	
 
    	
 
    	
Executive   Vice President and Chief Financial Officer
    
	
 
    	
 
    	
Omthera   Pharmaceuticals, Inc.
    
	
 
    	
 
    	
90   Washington Valley Road
    
	
 
    	
 
    	
Bedminster,   NJ 07921
    
	
 
    	
 
    	
cschade@Omthera.com
    
	
 
    	
 
    	
 
    
	
Landlord:
    	
 
    	
John   F. McCarthy, III, Esq.
    
	
 
    	
 
    	
McCarthy   Associates Limited
    
	
 
    	
 
    	
353   Nassau Street
    
	
 
    	
 
    	
Princeton,   New Jersey 08540
    
	
 
    	
 
    	
jack@mcccarthyllc.com
    
	
 
    	
 
    	
Phone:   609-924-2884
    
	
 
    	
 
    	
Fax:   609-924-2885
    

 

Each such notice shall be deemed to have been given to or served upon the party to which addressed on the date the same is delivered or delivery is refused.

 

23.          BROKERS. Landlord and Tenant each represents and warrants to the other that such party has had no dealings, negotiations or consultations with respect to the Premises or this transaction with any broker or finder. Each party shall indemnify and hold the other harmless from and against all liability, cost and expense, including attorney’s fees and court costs, arising out of any misrepresentation or breach of warranty under this Article.

 

24.          LANDLORD’S LIABILITY. Landlord’s obligations hereunder shall be binding upon Landlord only for the period of time that Landlord is in ownership of the Building; and, upon termination of that ownership, Tenant, except as to any obligations which are then due and owing, shall look solely to Landlord’s successor in interest in the Building for the satisfaction of each and every obligation of Landlord thereafter arising hereunder. Landlord shall have no personal liability under any of the term, conditions or covenants of this Lease and Tenant

 

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shall look solely to the equity of Landlord in the building for satisfaction of any claim, remedy or cause of action accruing to Tenant as a result of the breach of any section of this Lease by Landlord. In addition to the foregoing, no recourse shall be had for an obligation of Landlord hereunder, or for any claim based thereon or otherwise in respect thereof, against any past, present or future trustee, member, partner, shareholder, officer, director, partner, agent or employee of Landlord, whether by virtue of any statute or rule of law, or by the enforcement of any assessment or penalty or otherwise, all such other liability being expressly waived and released by Tenant with respect to the above-named individuals and entities.

 

25.          MISCELLANEOUS PROVISIONS. (a) Successors. The respective rights and obligations provided in this Lease shall bind and inure to the benefit of the parties hereto, their successors and assigns; provided, however, that no rights shall inure to the benefit of any successors or assigns of Tenant unless Landlord’s written consent for the transfer to such successor and/or assignee has first been obtained as provided in Article 9 hereof; (b) Governing Law. This Lease shall be construed, governed and enforced in accordance with the laws of the State of New Jersey, without regard to principles relating to conflicts of law; (c) Entire Agreement. This Lease, including the Exhibits and any Riders hereto, supersedes any prior discussions, proposals, negotiations and discussions between the parties and the Lease contains all agreements, conditions, understandings, representations and warranties made between the parties hereto with respect to the subject matter hereof, and may not be modified orally or in any manner other than by an agreement in writing signed by both parties hereto or their respective successors in interest. Without in any way limiting the generality of the foregoing, this Lease can only be extended pursuant to the terms hereof, with the due exercise of an option (if any) contained herein pursuant to a written agreement signed by both Landlord and Tenant specifically extending the term. No negotiations, correspondence by Landlord or offers to extend the term shall be deemed an extension of the termination date for any period whatsoever; (d) Time of the Essence. TIME IS OF THE ESSENCE IN ALL PROVISIONS OF THIS LEASE, INCLUDING ALL NOTICE PROVISIONS TO BE PERFORMED BY OR ON BEHALF OF TENANT; (e) Accord and Satisfaction. No payment by Tenant or receipt by Landlord of a lesser amount than any payment of Base Rent or Additional Rent herein stipulated shall be deemed to be other than on account of the earliest stipulated Base Rent or Additional Rent due and payable hereunder, nor shall any endorsement or statement or any check or any letter accompanying any check or payment as Rent be deemed an accord and satisfaction. Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other right or remedy provided for in this Lease, at law or in equity; (f) Guaranty. Intentionally Omitted; (g) Force Majeure. If by reason of strikes or other labor disputes, fire or other casualty (or reasonable delays in adjustment of insurance), accidents, orders or regulations of any Federal, State, County or Municipal authority, or any other cause beyond Landlord’s reasonable control, Landlord is unable to furnish or is delayed in furnishing any utility or service required to be furnished by Landlord under the provisions of this Lease or is unable to perform or make or is delayed in performing or making any installations, decorations, repairs, alterations, additions or improvements, or is unable to fulfill or is delayed in fulfilling any of Landlord’s other obligations under this Lease, no such inability or delay shall constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement or diminution of Base Rent, or relieve Tenant from any of its obligations under this Lease, or impose any liability upon Landlord or its agents, by reason of inconvenience or annoyance to Tenant, or injury to or interruption of Tenant’s business, or otherwise; (h) Financial Statements. Tenant shall furnish to Landlord, Landlord’s Mortgagee, prospective Mortgagee or purchaser reasonably requested financial statements, subject to Tenant’s confidentiality requirements; (i) Authority. Tenant represents and warrants that (a) Tenant is duly organized, validly existing and legally authorized to do business in the State of New Jersey; and (b) the persons executing this Lease are duly authorized to execute and deliver this Lease on behalf of Tenant; (j) Attorneys’ Fees. In connection with any litigation arising out of this Lease, the prevailing party, Landlord or Tenant, shall be entitled to recover all reasonable costs incurred, including reasonable attorneys’ fees.

 

26.          CONSENT TO JURISDICTION. Tenant hereby consents to the exclusive jurisdiction of the state courts located in Mercer County and to the federal courts located in the District of New Jersey.

 

27.          OFAC/PATRIOT ACT COMPLIANCE. Tenant represents, warrants and covenants that Tenant is not (i) listed on the Specially Designated Nationals and Blocked Persons List maintained by the Office of Foreign Asset Control, Department of the Treasury (“OFAC”) pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001) (“Order”) and all applicable provisions of Title III of the USA Patriot Act (Public Law No. 107-56) (October 26, 2001); (ii) listed on the Denied Persons List and Entity List maintained by the United States Department of Commerce; (iii) listed on the List of Terrorists and List of Disbarred Parties maintained by the United

 

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States Department of State; (iv) listed on any list or qualification of “Designated Nationals” as defined in the Cuban Assets Control Regulations 31 C.F.R. Part 515; (v) listed on any other publicly available list of terrorists, terrorist organizations or narcotics traffickers maintained by the United States Department of State, the United States Department of Commerce or any other governmental authority or pursuant to the Order, the rules and regulations of OFAC (including without limitation the Trading with the Enemy Act, 50 U.S.C. App. 1-44; the International Emergency Economic Powers Act, 50 U.S.C.          1701-06; the unrepealed provision of the Iraq Sanctions Act, Publ. L. No. 101-513; the United Nations Participation Act, 22 U.S.C.           2349 as-9; The Cuban Democracy Act, 22 U.S.C.          6001-10; The Cuban Liberty and Democratic Solidarity Act, 18 U.S.C.          2332d and 233; and The Foreign Narcotic Kingpin Designation Act, Publ. L. No. 106-120 and 107-108, all as may be amended from time to time); or any other applicable requirements contained in any enabling legislation or other Executive Orders in respect of the Order (the Order and such other rules, regulations, legislation or orders are collectively called “Orders”); (vi) engaged in activities prohibited in the Orders; or (vii) (and has not been) convicted, pleaded nolo contendere, indicted, arraigned or custodially detained on charges involving money laundering predicate crimes or in connection with the Bank Secrecy Act (31 U.S.C.          5311 et. seq.). Tenant further represents, warrants and covenants that Tenant shall conduct its business operations in compliance with the foregoing laws, rules, orders and regulations. Tenant hereby agrees to defend, indemnify, and hold harmless Landlord from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney’s fees and costs) arising from or related to any breach of the foregoing representations, warranties and covenants. The breach of either of the above representations, warranties and covenants by Tenant shall be an Event of Default under this Lease.

 

28.          RENEWAL. Provided Tenant is not in default beyond applicable notice and cure period at the time of exercise and Tenant is fully occupying the Premises and the Lease is in full force and effect, Tenant shall have the right to renew this Least for two (2) terms of three (3) years beyond the end of the initial Term (“Renewal Term”). Tenant shall furnish written notice of intent to renew nine (9) months prior to the expiration of the applicable Term, failing which, such renewal right shall be deemed waived; time being of the essence. The terms and conditions of this Lease during each Renewal Term shall remain unchanged except that the annual Base Rent for each Renewal Term shall be ninety-five percent (95%) of Fair Market Rent (as such term is hereinafter defined). All factors regarding Additional Rent shall remain unchanged, and no allowance shall be included in the absence of further agreement by the parties. Anything herein contained to the contrary notwithstanding, Tenant shall have no right to renew the term hereof other than or beyond the two (2) consecutive three (3) year terms hereinabove described.

 

For purposes of this Lease, “Fair Market Rent” shall mean the base rent, for comparable space. In determining the Fair Market Rent, Landlord, Tenant and any appraiser shall take into account applicable measurement and the loss factors, applicable lengths of lease term, differences in size of the space demised, the location of the Building and comparable buildings, amenities in the Building and comparable buildings, the ages of the Building and comparable buildings, differences in base years or stop amounts for operating expenses and tax escalations and other factors normally taken into account in determining Fair Market Rent. The Fair Market Rent shall reflect the level of improvement made or to be made by Landlord to the space the Recognized Expenses and Taxes under this Lease. If Landlord and Tenant cannot agree on the Fair Market Rent, the Fair Market Rent shall be established by the following procedure: (1) Tenant and Landlord shall agree on a single MAI certified appraiser who shall have a minimum of ten (10) years experience in real estate leasing in the market in which the Premises is located; (2) Landlord and Tenant shall each notify the other (but not the appraiser) of its determination of such Fair Market Rent and the reasons thereof; (3) during the next seven (7) days both Landlord and Tenant shall prepare a written critique of the other’s determination and shall deliver it to the other party; (4) on the tenth (10th ) day following delivery of the critiques to each other, Landlord’s and Tenant’s determinations and critiques (as originally submitted to the other party, with no modifications whatsoever) shall be submitted to the appraiser, who shall decide whether Landlord’s or Tenant’s determination of Fair Market Rent is more correct. The determinations so chosen shall be the Fair Market Rent. The appraiser shall not be empowered to choose any number other than the Landlord’s or Tenant’s. The fees of the appraiser shall be paid by the non-prevailing party.

 

29.          RIGHT OF EXPANSION. Subject to (a) Tenant not being in default at the time of exercise beyond applicable notice and cure period; (b) Tenant occupying the entire Premises originally demised hereunder and having at least nine (9) months remaining in its lease term; Tenant shall have the right to lease the balance of the contiguous second floor of the Building (“Contiguous Space”) on the same terms and conditions as the Premises under this Lease, which Contiguous Space is currently available for lease as of the date of this Lease. Tenant shall notify Landlord of it intent to lease such Contiguous Space, and Tenant shall have fifteen (15) days after receipt

 

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from Landlord of an initial draft, to execute an amendment to this Lease leasing such Contiguous Space. In addition, if Landlord receives a bona fides offer to lease such Contiguous Space to a third party, Landlord shall first notify Tenant of its notice of intent to rent this Contiguous Space in the Building to such third party. Within fifteen (15) days of Tenant’s receipt of such notice, Tenant shall have the option to notify Landlord of its intent to lease such Contiguous Space, and Tenant shall have fifteen (15) days after receipt from Landlord of an initial draft, to execute an amendment to this Lease leasing such Contiguous Space. Such amendment to this Lease would add such Contiguous Space to the description of the “Premises” upon all of the terms of this Lease. The term would be coterminous with the term of this Lease. Such Contiguous Space shall be delivered in “AS IS” condition, and Rent for such Contiguous Space shall commence on that date which is the earlier of: (x) Tenant’s occupancy thereof, and (y) three (3) business days after Landlord delivers such additional space to Tenant free of other tenants and occupants. If Tenant shall not accept Landlord’s terms within such fifteen (15) day period, then Tenant’s rights to lease such Contiguous Space shall lapse and terminate, and Landlord may, at its discretion, lease such Contiguous Space on such terms and conditions as Landlord shall determine. Tenant’s rights hereunder shall not include the right to lease less than all of the space identified in Landlord’s notice.

 

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

 

 

	
Attest
    	
McCARTHY ASSOCIATES LIMITED
    
	
 
    	
 
    	
Landlord
    
	
 
    	
 
    	
By: Princeton Gateway Corporation, Inc.
    
	
 
    	
 
    	
Its General Partner
    
	
 
    	
 
    	
 
    
	
/s/ Linda A. Luther
    	
 
    	
 
    	
/s/ John F. McCarthy, III
    
	
Assistant Secretary
    	
 
    	
By:  John F.   McCarthy, III, its President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Attest:
    	
OMTHERA PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
Tenant
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
/s/ Christian S. Schade
    
	
 
    	
 
    	
By: Christian S. Schade
    

 

14

 

EXHIBIT “A”

 

SPACE PLAN

 

15

 

Exhibit “A”

 

 

 

Exhibit A (cont)

 

 

 

Exhibit B

 

 

 

Exhibit B (cont.)

 

 

 

Exhibit B (cont.)

 

FIRST FLOOR FURNITURE

 

Training / Conference Room

1 Video projector

 

Room 4

1 Desk unit with wall cabinet

3 Office chairs

1 Two-drawer filing cabinet

1 White board

1 Two-drawer filing cabinet (wooden)

 

Room 8

1 Two-drawer filing cabinet (wooden)

 

Room 9

1 Desk unit

 

Room 10

1 Desk unit

 

Room 23

1 Oval table

 

SECOND FLOOR FURNITURE

 

Room 1 (Reception Area)

2 Two-drawer filing cabinet

 

Room 2

1 Desk unit with wall cabinet

1 Round table

1 Credenza

1 Diamond patterned Chair

1 Bookcase

 

Room 3

1 Desk unit with wall cabinet

1 Square table

3 Diamond patterned Chairs

1 Bookcase

1 Two-drawer filing cabinet

1 Reception table

 

 

Exhibit B (cont.)

 

Room 4

1 Oval desk/table

1 Four-drawer filing cabinet (credenza)

5 Diamond patterned Chairs

1 Two-drawer filing cabinet

1 Sofa and chair (matching)

 

Kitchen

1 GE Refrigerator

1 Sharp Microwave

 

Room 5

1 Desk unit with wall cabinet

1 Bookcase

2 Two-drawer filing cabinets

 

Room 6

1 Desk unit

1 Square table

1 White board

6 Diamond patterned Chairs

3 Bookcases

1 Four-drawer filing cabinet

 

Room 7

1 Desk unit with wall cabinet

1 Square table

4 Diamond patterned Chairs

1 Bookcase

1 Four-drawer filing cabinet

 

Cubicle 1

2 Desk units

2 Bookcases

 

Room 8

1 Desk unit with wall cabinet

1 Square table

1 White board

4 Diamond patterned Chairs

2 Bookcases

2 Two-drawer filing cabinet

 

 

Exhibit B (cont.)

 

Mailroom

1 Storage units

1 Floor cabinet

1 Typewriter stand

 

Cubicle 2

1 Desk unit

 

Cubicle 3

1 Desk unit

 

Room 9

1 Desk unit with wall cabinet

2 Diamond patterned Chairs

1 Bookcase

 

Room 10

1 Desk unit with wall cabinet

1 Two-drawer filing cabinet

1 Diamond patterned Chair

1 Bookcase

 

Cubicle 4

1 Desk unit

 

Cubicle 5

1 Desk unit

 

Room 11

1 Desk unit with wall cabinet

2 Diamond patterned Chairs

1 Bookcase

1 Five-drawer filing cabinet

 

Room 12

1 Desk unit with wall cabinet

2 Diamond patterned Chairs

1 Bookcase

 

 

Exhibit B (cont.)

 

Room 13

1 Desk unit with wall cabinet

1 Bookcase

 

Room 14

1 Desk unit with wall cabinet

1 Wooden storage unit

1 Bookcase

1 Two-drawer filing cabinet

 

Cubicle 6

1 Desk unit

 

Room 15

1 Wall cabinet

7 Bookcases

1 Five-drawer filing cabinet

1 Storage units

 

Room 16

1 Desk unit with wall cabinet

1 Five-drawer filing cabinet

 

Room 17

1 Desk unit with wall cabinet

1 White board w/ doors

1 Four-drawer filing cabinet

 

Room 18

1 Desk unit with wall cabinet

1 Bookcase

1 Four-drawer filing cabinet

 

Room 19

3 Bookcases

1 Four-drawer filing cabinet

 

Room 20

1 Desk unit with wall cabinet

2 Bookcases

 

Room 21

2 Five-drawer filing cabinets

 

Cubicle 7

1 Desk unit

 

 

Exhibit B (cont.)

 

2 Two-drawer filing cabinets

 

Room 22

1 Desk unit with wall cabinet

1 Bookcase

 

Room 23

1 Desk unit

 

File Room

10 Five-drawer filing cabinets

03 Four-drawer filing cabinets

 

Storage Room

6 Metal shelving units

3 Five-drawer filing cabinets

1 Three-drawer filing cabinet

2 Bookcases

2 Oval tables

1 Small conference table

4 Leather chairs

 

 

Exhibit “C”

 

	
 
    	
Date
    

 

Name

Address

City, State Zip

 

Re: Commencement of Lease

 

Dear Madam/Sir:

 

This is to confirm that your lease commencement date is                 . Please acknowledge by signing this letter and returning a copy to me.

 

Thank you.

 

	
 
    	
 
    	
Very truly yours,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
John F. McCarthy, III
    
	
 
    	
 
    	
President, Princeton
    
	
 
    	
 
    	
Gateway Corporation, Inc.
    
	
 
    	
 
    	
Corporate General Partner
    
	
 
    	
 
    	
McCarthy Associates Limited
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Commencement Date: dd/mm/yy
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name:
    	
 
    	
 
    
	
Title:
    	
 
    	
 
    
	
Date:
    	
 
    	
 
    

 

 

EXHIBIT “D”

 

JANITORIAL SERVICES

 

DAILY

Empty trash and recycle

Remove spots/spills from carpet

Remove visible debris/litter from carpet

Spot clean desks and tables

Straighten chair/furniture

Turn off lights

 

WEEKLY

Dust desks and computer monitors

Vacuum carpet

Clean wastebaskets

Clean light fixtures and vents

Clean telephones

Clean walls, switch plates and baseboards

Dust file cabinets, partitions and bookshelves

Clean chairs

Clean doors

Clean tables

Dust pictures and surfaces over five feet

Dust window sills, ledges and radiators

Spot clean side light glass

 

16

 

RESTROOM CLEANING SPECIFICATIONS

 

DAILY

Sinks

Floors

Counters

Trash receptacle

Toilet/urinals

Dispensers

Door

Spot clean walls

Spot clean partitions

 

WEEKLY

Dust lights

Dust surfaces over five feet

Ceiling vents

Clean walls

Clean partitions

 

FLOOR CARE SPECIFICATIONS

 

DAILY

Spot clean carpets

Sweep VCT covered floors

 

WEEKLY

Burnish polished surfaces

 

MONTHLY

Machine scrub restroom floors

 

YEARLY

Strip and refinish all vinyl tile

 

17

 

THESE SPECIFICATIONS ARE SUBJECT TO CHANGE WITHOUT NOTICE

THE COST FOR ANY CLEANING OVER AND ABOVE THE STANDARD CLEANING

SPECIFICATIONS IS TO BE BORNE BY THE TENANT.

 

18

 

EXHIBIT “E”

 

BUILDING RULES AND REGULATIONS

LAST REVISION:

 

Landlord reserves the right to rescind any of these rules and make such other and further rules and regulations as in the judgment of Landlord shall from time to time be needed for the safety, protection, care and cleanliness of the Building, the operations thereof, the preservation of good order therein and the protection and comfort of its tenants, their agents, employees and invitees, which rules when made and notice thereof given to Tenant shall be binding upon him, her or it in a like manner as if originally prescribed.

 

1.              Sidewalks, entrances, passages, elevators, vestibules, stairways, corridors, halls, lobby and any other part of the Building shall not be obstructed or encumbered by any Tenant or used for any purposes other than ingress or egress to and from each tenant’s premises. Landlord shall have the right to control and operate the common portions of the Building and exterior facilities furnished for common use of the tenants (such as the eating, smoking and parking areas) in such a manner as Landlord deems appropriate.

 

2.              No awnings or other projections shall be attached to the outside walls of the Building without the prior written consent of Landlord. All drapes or window blinds must be of a quality, type and design, color and attached in a manner approved by Landlord.

 

3.              No showcases or other articles shall be put in front of or affixed to any part of the exterior of the Building, or placed in hallways or vestibules without prior written consent of Landlord.

 

4.              Restrooms and other plumbing fixtures shall not be used for any purposes other than those for which they were constructed; and no debris, rubbish, rags or other substances shall be thrown therein. Only standard toilet tissue may be flushed in commodes. All damage resulting from any misuse of these fixtures shall be the responsibility of the tenant who, or whose employees, agents, visitors, clients, or licensees shall have caused same.

 

5.              No tenant, without the prior consent of Landlord, shall mark, paint, drill into, bore, cut or string wires or in any way deface any part of the Premises or the Building of which they form a part except for the reasonable hanging of decorative or instruction materials on the walls of the Premises.

 

6.              Tenants shall not construct or maintain, use or operate in any part of the Building any electrical device, wiring or other apparatus in connection with a loud speaker system or other sound/communication system which may be heard outside the Premises. Any such communication system to be installed within the Premises shall require prior written approval of Landlord.

 

7.              No mopeds, skateboards, scooters or other vehicles and no animals, birds or other pets of any kind shall be brought into or kept in or about the Building other than a service animal performing a specified task.

 

8.              No tenant shall cause or permit any unusual or objectionable odors to be produced upon or permeate from its premises.

 

9.              No space in the Building shall be used for the manufacture of goods for sale in the ordinary course of business, or for sale at auction of merchandise, goods or property of any kind.

 

10.       No tenant, or employees of tenant, shall make any unseemly or disturbing noises or disturb or interfere with the occupants of this or neighboring buildings or residences by voice, musical instrument, radio, talking machines, or in any way. All passage through the Building’s hallways, elevators, and main lobby shall be conducted in a quiet, business-like manner. Skateboarding, rollerblading and rollerskating shall not be permitted in the Building or in the common areas of the Building or property.

 

11.       No tenant shall throw anything out of the doors, windows, or down corridors or stairs of the Building.

 

19

 

12.       Tenant shall not place, install or operate on the Premises or in any part of the Building or property, any engine, stove or machinery or conduct mechanical operations or cook thereon or therein (except for coffee machine, microwave oven, toasters and/or vending machine) or place or use in or about the Premises, Building or property any explosives, gasoline, kerosene oil, acids, caustics or any other flammable, explosive, or hazardous material without prior written consent of Landlord.

 

13.       No smoking is permitted in the Building, including but not limited to the Premises, rest rooms, hallways, elevators, stairs, lobby, exit and entrance vestibules, sidewalks, parking lot area except for the designated exterior smoking area. All cigarette ashes and butts are to be deposited in the containers provided for same, and not disposed of on sidewalks, parking lots areas, or toilets within the Building rest rooms.

 

14.       Tenants are not to install any additional locks or bolts of any kind upon any door or window of the Building without the prior written consent of Landlord. Each tenant must, upon the termination of tenancy, return to the Landlord all keys for the Premises, either furnished to or otherwise procured by such tenant, and all security access cards to the Building.

 

15.       All doors to hallways and corridors shall be kept closed during business hours except as they may be used for ingress or egress.

 

16.       Tenant shall not use the name of the Building or Landlord in any way in connection with its business except as the address thereof. Landlord shall also have the right to prohibit any advertising by tenant, which, in its sole opinion, tends to impair the reputation of the Building or its desirability as a building for offices, and upon written notice from Landlord, tenant shall refrain from or discontinue such advertising.

 

17.       Tenants must be responsible for all security access cards issued to them, and to secure the return of same from any employee terminating employment with them. Lost cards shall cost $35.00 per card to replace. No person/company other than Building tenants and/or their employees may have security access cards unless Landlord grants prior written approval.

 

18.       All deliveries by vendors, couriers, clients, employees or visitors to the Building which involve the use of a hand cart, hand truck, or other heavy equipment or device must be made via the Freight Elevator, if such Freight Elevator exists in the Building. Tenant shall be responsible to Landlord for any loss or damage resulting from any deliveries made by or for tenant to the Building. Tenant shall procure and deliver a certificate of insurance from tenant’s movers which certificate shall name Landlord as an additional insured.

 

19.       Landlord reserves the right to inspect all freight to be brought into the Building, and to exclude from the Building all freight or other material which violates any of these rules and regulations.

 

20.       Tenant will refer all contractors, contractor’s representatives and installation technicians, rendering any service on or to the premises for tenant, to Landlord for Landlord’s approval and supervision before performance of any contractual service or access to Building. This provision shall apply to all work performed in the Building including installation of telephones, telegraph equipment, electrical devices and attachments and installations of any nature affecting floors, walls, woodwork, trim, windows, ceilings, equipment or any other physical portion of the Building. Landlord reserves the right to require that all agents of contractors/vendors sign in and out of the Building.

 

21.       Landlord reserves the right to exclude from the Building at all times any person who is not known or does not properly identify himself to Landlord’s management or security personnel.

 

22.       Landlord may require, at its sole option, all persons entering the Building after 6:00 p.m. or before 7:00 a.m. Monday through Friday and at any time on holidays, Saturdays and Sundays, to register at the time they enter and at the time they leave the Building.

 

20

 

23.       No space within the Building, or in the common areas such as the parking lot, may be used at any time for the purposes of lodging, sleeping, or for any immoral or illegal purposes.

 

24.       No employees or invitees of tenant shall use the hallways, stairs, lobby or other common areas of the Building as lounging areas during “breaks” or during lunch periods.

 

25.       No canvassing, soliciting or peddling is permitted in the Building or its common areas by tenants, their employees or other persons.

 

26.       No mats, trash or other objects shall be placed in the public corridors, hallways, stairs or other common areas of the Building.

 

27.       Tenant must place all recyclable items of cans, bottles, plastic and office recyclable paper in appropriate containers provided by Landlord in each tenant’s space. Removal of these recyclable items will be by Landlord’s janitorial personnel.

 

28.       Landlord does not maintain suite finishes which are non-standard, such as kitchens, bathrooms, wallpaper, special lights, etc. However, should the need arise for repair of items not maintained by Landlord, Landlord at its sole option may arrange for the work to be done at tenant’s expense.

 

29.       Drapes installed by tenant, which are visible from the exterior of the Building, must be cleaned by Tenant, at its own expense, at least once a year.

 

30.       No pictures, signage, advertising, decals, banners, etc. are permitted to be placed in or on windows in such a manner as they are visible from the exterior, without the prior written consent of Landlord.

 

31.       Tenant or tenant’s employees are prohibited at any time from eating or drinking in hallways, elevators, rest rooms, lobby or lobby vestibules.

 

32.       Tenant shall be responsible to Landlord for any acts of vandalism performed in the Building by its employees, agents, invites or visitors.

 

33.       No tenant shall permit the visit to its Premises of persons in such numbers or under such conditions as to interfere with the use and enjoyment of the entrances, hallways, elevators, lobby or other public portions or facilities of the Building and exterior common areas by other tenants.

 

34.       Landlord’s employees shall not perform any work or do anything outside of their regular duties unless under special instructions from Landlord. Requests for such requirements must be submitted in writing to Landlord.

 

35.       Tenant agrees that neither tenant nor its agents, employees, licensees or invitees will interfere in any manner with the installation and/or maintenance of the heating, air conditioning and ventilation facilities and equipment.

 

36.       Landlord will be not responsible for lost or stolen personal property, equipment, money or jewelry from tenant’s area or common areas of the Building or property regardless of whether such loss occurs when area is locked against entry or not.

 

37.       Landlord will not permit entrance to tenant’s Premises by use of pass key controlled by Landlord, to any person at any time without written permission of tenant, except employees, contractors or service personnel supervised or employed by Landlord.

 

38.       Tenant and its agents, employees and invitees shall observe and comply with the driving and parking signs and markers on the Building, grounds and surrounding areas.

 

21

 

39.       Tenant and its employees, invitees, agents, etc. shall not enter other separate tenants’ hallways, restrooms or premises unless they have received prior approval from Landlord’s management.

 

40.       Tenant shall not use or permit the use of any portion of the Premise for outdoor storage.

 

22

 

Exhibit F

 

 

 

McCARTHY ASSOCIATES LIMITED

 

AGREEMENT OF LEASE

 

	
LANDLORD:
    	
 
    	
McCARTHY   ASSOCIATES LIMITED
    
	
 
    	
 
    	
 
    
	
TENANT:
    	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    	
 
    
	
PREMISES:
    	
 
    	
7,841   rentable square feet on second floor as shown on Exhibit “A”
    
	
 
    	
 
    	
 
    
	
BUILDING:
    	
 
    	
Princeton   Gateway Corporate Campus
    
	
 
    	
 
    	
707   State Road
    
	
 
    	
 
    	
Princeton,   New Jersey 08540
    
	
 
    	
 
    	
 
    
	
DATED:
    	
 
    	
January    ,   2012
    

 

23

 

BASIC LEASE INFORMATION

 

	
Landlord:
    	
 
    	
McCarthy   Associates Limited
    
	
 
    	
 
    	
a   New Jersey limited partnership
    
	
 
    	
 
    	
353   Nassau Street
    
	
 
    	
 
    	
Princeton,   NJ 08540
    
	
 
    	
 
    	
 
    
	
Tenant:
    	
 
    	
Omthera   Pharmaceuticals, Inc.
    
	
 
    	
 
    	
a   New Jersey corporation
    
	
 
    	
 
    	
P.   O. Box 7237
    
	
 
    	
 
    	
Bedminster,   NJ 07921
    
	
 
    	
 
    	
 
    
	
Commencement   Date:
    	
 
    	
December 1,   2011
    
	
 
    	
 
    	
 
    
	
Rentable   Area of Building:
    	
 
    	
37,966   rentable square feet
    
	
 
    	
 
    	
 
    
	
Rentable   Area of Premises:
    	
 
    	
7,841   rentable square feet
    
	
 
    	
 
    	
 
    
	
Tenant’s   Proportionate Share:
    	
 
    	
20.6%
    
	
 
    	
 
    	
 
    
	
Termination   Date:
    	
 
    	
Third   anniversary of the Commencement Date
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Base   Rent Per Year:
    	
 
    	
First   Year:
    	
 
    	
$133,297.00   ($17.00/sq. ft.)
    
	
 
    	
 
    	
Second   Year:
    	
 
    	
$133,297.00   ($17.00/sq. ft.)
    
	
 
    	
 
    	
Third   Year:
    	
 
    	
$133,297.00   ($17.00/sq. ft.)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Base   Rent Per Month:
    	
 
    	
First   Year:
    	
 
    	
$11,108.08
    
	
 
    	
 
    	
Second   Year:
    	
 
    	
$11,108.08
    
	
 
    	
 
    	
Third   Year:
    	
 
    	
$11,108.08
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
Security   Deposit:
    	
 
    	
$22,040.5
    	
 
    	
 
    

 

	
 
    	
 
    
	
INITIALS:
    	
/s/ TM III
    	
 
    	
/s/ CS
    	
 
    
	
 
    	
Landlord
    	
 
    	
Tenant
    	
 
    

 

24Exhibit 10.8

 

EMPLOYMENT AGREEMENT

 

This EMPLOYMENT AGREEMENT (this “Agreement”) is dated as of the 13th day of November, 2009, by and between Omthera Pharmaceuticals, Inc., a Delaware corporation (the “Company”), and Gerald Wisler (the “Executive”).

 

WITNESSETH:

 

The Company desires to employ the Executive, and the Executive wishes to accept such employment with the Company, upon the terms and conditions set forth in this Agreement.

 

In consideration of the mutual promises and agreements set forth herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

 

1.             Employment.  The Company hereby employs the Executive as President and Chief Executive Officer and the Executive hereby accepts such employment by the Company upon the terms and conditions hereinafter set forth.

 

2.             Employment Period.  Subject to the provisions of Section 8 hereof, this Agreement shall be terminable for any reason by either party on six (6) months written notice.  The term of the Executive’s employment hereunder shall continue until this Agreement is terminated as provided below, and is hereinafter referred to as the “Employment Period.”

 

3.             Compensation.  For performance of all services rendered under this Agreement, the Company shall pay the Executive a base salary at an annual rate of $350,000 (the “Base Salary”) in installments payable in accordance with the Company’s customary payroll practices but no less frequently than once each month.  The Executive shall also be eligible for a merit bonus in such amount and payable at such time or times as the Board of Directors of the Company (the “Board”) may in its sole discretion determine.  The Executive has a target bonus opportunity of forty percent (40%) of the Base Salary, assuming achievement of a series of mutually agreed upon performance milestones set each fiscal year.  The actual amount, if any, shall be determined by the Board in its sole discretion.  The Executive shall receive a performance review on an annual basis, which will include a determination of potential adjustment of the Executive’s Base Salary, along with an assessment of the afore-mentioned merit bonus.  Nothing herein should be interpreted as a guarantee of a salary increase or merit bonus.  The Company shall pay any cash bonuses that the Executive receives by March 1 5th of the following year.

 

4.             Duties.  The Executive shall be employed as an executive of the Company, and shall have such duties as are assigned or delegated to him by the Board or its designee.  The Executive shall devote his entire working time, attention and energy exclusively to the business of the Company and shall cooperate fully with the Board in the advancement of the best interests of the Company.  The Executive agrees not to engage in any activities outside of the scope of the Executive’s employment that would detract from, or interfere with, the fulfillment of his responsibilities or duties under this Agreement.  The Executive agrees that the Executive will not serve as a director or the equivalent position of any company or entity, and will not render services of a business, professional or commercial nature to any other person or firm, except for not-for-profit entities, without the prior written consent of the Board, which consent shall not be unreasonably withheld, provided that the Executive may continue to serve as a director of Ampla Pharmaceuticals.  If elected as a director of the Company, the Executive agrees to fulfill the duties of such offices without additional compensation.

 

 

5.             Expenses.  Subject to compliance by the Executive with such policies regarding expenses and expense reimbursement as may be adopted from time to time by the Company, the Executive is authorized to incur reasonable expenses in the performance of his duties hereunder in furtherance of the business and affairs of the Company, and the Company will reimburse the Executive for all such reasonable expenses, upon the presentation by the Executive of an itemized account satisfactory to the Company in substantiation of such expenses when claiming reimbursement.

 

6.             Employee Benefits; Vacations.  The Executive shall be eligible to participate in such life insurance, medical and other employee benefit plans of the Company that may be in effect from time to time, to the extent he is eligible under the terms of those plans, on the same basis as other similarly situated executive officers of the Company.  The Company may from time to time modify or eliminate any or all benefits extended or provided in its sole discretion.  The Executive shall be entitled to paid vacations of twenty-five (25) days per year in accordance with the policies of the Company in effect from time to time, as determined by the Board.

 

7.             Taxation of Payments and Benefits.  The Company shall make deductions, withholdings and tax reports with respect to payments and benefits under this Agreement to the extent that it reasonably and in good faith believes that it is required to make such deductions, withholdings and tax reports.  Payments under this Agreement shall be in amounts net of any such deductions or withholdings.  Nothing in this Agreement shall be construed to require the Company to make any payments to compensate the Executive for any adverse tax effect associated with any payments or benefits or for any deduction or withholding from any payment or benefit.

 

8.             Termination.  The Executive’s employment relationship with the Company is at-will.  Either the Executive or the Company may terminate the employment relationship at any time, with or without Cause (as such term is defined in Section 14 below) on advance notice as provided herein or with immediate effect if the termination is for Cause.  Upon termination of the Executive’s employment, the Executive will be entitled to any earned but unpaid Base Salary as well as the following additional benefits:

 

(a)           Subject to compliance with Section 8(f), before a Change of Control, in the event that the Executive’s employment is terminated by the Company for reasons other than Cause (as such term is defined in Section 14 below) or in the event the Executive resigns his employment for Good Reason (as defined in Section 14 below), the Executive will be provided a severance package with continuation of salary and benefits.  The salary continuation will be paid out in substantially equal installments in accordance with the Company’s payroll practice over a period of twelve (12) months from the date of notice of termination, beginning on the first payroll date that occurs 55 days from the date of termination.  Solely for purposes of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each installment payment is considered a separate payment.  Any bonus that has been previously granted but not paid to Executive will be paid in a lump sum within 30 days after the 55th day after the date of termination.

 

(b)           In the event that the Executive’s employment is terminated for Cause or the Executive resigns without Good Reason, the Executive will not be entitled to a severance package.

 

(c)           Subject to compliance with Section 8(f), in the event that the Executive’s employment is terminated by reason of his death or Disability (as such term is defined in Section 14 below) the Executive will be provided a severance package with continuation of salary and benefits.  The salary continuation will be paid in substantially equal installments in accordance with the Company’s payroll practice over a period of six (6) months, beginning on the date of death or Disability, beginning on the first payroll date that occurs 55 days from the date of termination.  Solely for purposes of Section 409A of the Code, each installment payment is considered a separate payment.  Any bonus that has been previously granted but not paid to Executive will be paid in a lump sum within 30 days after the 55th day after the date of termination.

 

(d)           Subject to compliance with Section 8(f), concurrently with or after a Change of Control, in the event that the Executive’s employment is terminated by the Company for reasons other than Cause (as such term is defined in Section 14 below) or in the event the Executive resigns his employment for Good Reason (as defined in Section 14 below), the Executive will be (i) provided a severance package with continuation of salary

 

2

 

and benefits for the longer of (A) a period of two years from the consummation of a Change of Control and (B) twelve (12) months from the date of termination and (ii) entitled to continuing health care benefits until the later of his death or the death of his spouse.  The salary continuation will be paid out in substantially equal installments in accordance with the Company’s payroll practice over the time period in clause (A) or (B) as applicable stated above, beginning on the first payroll date that occurs 55 days from the date of termination.  Solely for purposes of Section 409A of the Code, each installment payment is considered a separate payment.  Any bonus that has been previously granted but not paid to Executive will be paid in a lump sum within 30 days after the 55th day after the date of termination.

 

(e)           Notwithstanding any termination of the Executive’s employment for any reason (with or without Cause or Good Reason), the Executive will continue to be bound by the provisions of the Confidentiality Agreement (as defined below).

 

(f)            All payments and benefits provided pursuant to Sections 8(a), (c) (for Disability but not death) and (d) shall be conditioned upon the Executive’s execution and non-revocation of a general release substantially in the form attached hereto as Exhibit A at the time of termination.  The Executive’s refusal to execute a general release shall constitute a waiver by the Executive of any and all benefits referenced in Sections 8(a), (c) and (d).  The Company will not be obligated to commence or continue any such payments to the Executive under Sections 8(a), (c) and (d) in the event the Executive materially breaches the terms of this Agreement or the Confidentiality Agreement (as defined below).

 

9.             Confidentiality, Non-Competition and Invention Assignment Agreement.  The Company considers the protection of its confidential information and proprietary materials to be very important.  Therefore, as a condition of the Executive’s employment, the Executive will be required to execute a standard confidentiality, non-competition and invention assignment agreement substantially in the form attached hereto as Exhibit B (the “Confidentiality Agreement”) on the date hereof.

 

10.          Documents, Records, etc.  All documents, records, data, apparatus, equipment and other physical property, whether or not pertaining to Proprietary Information (as defined in the Confidentiality Agreement), which are furnished to the Executive by the Company or are produced by the Executive in connection with the Executive’s employment will be and remain the sole property of the Employer.  The Executive will return to the Company all such materials and property as and when requested by the Employer.  In any event, the Executive will return all such materials and property immediately upon termination of the Executive’s employment for any reason.

 

11.          Litigation and Regulatory Cooperation.  During and after the Executive’s employment, the Executive shall cooperate fully with the Company in the defense or prosecution of any claims or actions now in existence or which may be brought in the future against or on behalf of the Company which relate to events or occurrences that transpired while the Executive was employed by the Company.  The Executive’s full cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with counsel to prepare for discovery or trial and to act as a witness on behalf of the Company at mutually convenient times.  During and after the Executive’s employment, the Executive also shall cooperate fully with the Company in connection with any investigation or review of any federal, state or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while the Executive was employed by the Company.  Notwithstanding the foregoing, the Executive’s obligations under this Section 11 shall not apply in the event of any dispute, claim or action between the Executive and the Company.

 

12.          Cooperation with the Company after Termination.  Following termination of this Agreement for any reason (with or without Cause), the Executive shall fully cooperate with the Company in all matters relating to the winding up of the Executive’s services under this Agreement and the orderly transfer of such matters to any person designated by the Company and shall promptly return to the Company all of the property of the Company and any other materials or information related to the Company, including all work product, whether finished or unfinished, prepared or produced by the Executive for the benefit of the Company under this Agreement.  The Executive agrees not attend the premises of the Company during any period following any notice of termination should the Board of Directors so request.

 

3

 

13.          No Conflict.  The Executive hereby represents and warrants to the Company that (a) this Agreement constitutes the Executive’s legal and binding obligation, enforceable against him in accordance with its terms, (b) his execution and performance of this Agreement does not and will not breach any other agreement, arrangements, understanding, obligation of confidentiality or employment relationship to which he is a party or by which he is bound, and (c) during the Employment Period, he will not enter into any agreement, either written or oral, in conflict with this Agreement or his obligations hereunder.

 

14.          Definitions.

 

(a)           The term “Cause” shall mean (i) the Executive’s intentional, willful or knowing failure or refusal to perform the Executive’s duties (other than as a result of physical or mental illness, accident or injury) or any other material breach of this Agreement by the Executive; (ii) dishonesty, willful or gross misconduct, or illegal conduct by the Executive in connection with the Executive’s employment with the Company; (iii) the Executive’s conviction of, or plea of guilty or nolo contendere to, a charge of commission of a felony (exclusive of any felony relating to negligent operation of a motor vehicle); and (iv) a material breach by the Executive of the Confidentiality Agreement; provided, however, in the case of clauses (i) and (iv) above, the Company shall be required to give the Executive fifteen (15) calendar days prior written notice of its intention to terminate the Executive for Cause and the Executive shall have the opportunity during such fifteen (15) day period to cure such event if such event is capable of being cured; provided, further, that in the event that the Executive terminates his employment with the Company during such fifteen (15) day period for any reason, such termination shall be considered a termination for Cause.

 

(b)           The term “Change of Control” shall mean, in one or a series of related transactions, (1) the sale or other disposition of all or substantially all of the assets of the Company, (2) the sale or other disposition of all of the issued and outstanding stock of the Company, or (3) the merger or consolidation of the Company with or into another entity in which all of the issued and outstanding stock of the Company is converted into or exchanged for cash, securities of another entity, or other property; provided, in each case, that the stockholders of the Company immediately before such transaction do not, immediately thereafter, beneficially own (as such term is used in Rule 13d-3 under the Securities Exchange Act of 1934, as amended) a majority of the outstanding equity of the entity that acquires the Company’s assets or stock or of the surviving or resulting entity in such a merger or consolidation.

 

(c)           The term “Disability” shall mean if the Executive is incapacitated or disabled by accident or sickness or otherwise so as to render him mentally or physically incapable of performing the services required to be performed by him under this Agreement for a period of 90 consecutive days or longer, or for an aggregate of 90 days during any twelve-month period.

 

(d)           The term “Good Reason” shall mean (i) any material adverse change in the Executive’s title or any material diminution in the Executive’s authority or responsibilities taken as a whole, (ii) any material reduction of the Executive’s base salary, other than pursuant to an across-the-board reduction in the compensation of all senior management of the Company; provided that such reduction is proportionately equal among all such members of senior management, (iii) any material breach by the Company of its obligations under this Agreement, and (iv) a change without the Executive’s consent in the principal location of the Executive’s office to an office that outside of the state of New Jersey, Pennsylvania or the New York City metropolitan area, such consent not to be unreasonably withheld; provided that in any case the Executive provides the Company with written notice of the Executive’s intention to terminate the Executive’s employment for Good Reason within thirty (30) days after the occurrence of the event that the Executive believes would constitute Good Reason, give the Company an opportunity to cure for thirty (30) days following receipt of such notice from the Executive, if the event is capable of being cured or, if not capable of being cured, to have the Company’s representatives meet with the Executive and the Executive’s counsel to be heard regarding whether Good Reason exists for the Executive to terminate the Executive’s employment with the Company.

 

(e)           The term “person” shall mean any individual, corporation, firm, association, partnership, other legal entity or other form of business organization.

 

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15.          Section 409A.

 

(a)           Anything in this Agreement to the contrary notwithstanding, if at the time of the Executive’s separation from service within the meaning of Section 409A of the Code, the Company determines that the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code, then to the extent any payment or benefit that the Executive becomes entitled to under this Agreement on account of the Executive’s separation from service would be considered deferred compensation subject to the 20 percent additional tax imposed pursuant to Section 409A(a) of the Code as a result of the application of Section 409A(a)(2)(B)(i) of the Code, such payment shall not be payable and such benefit shall not be provided until the date that is the earlier of (A) six months and one day after the Executive’s separation from service, or (B) the Executive’s death.  If any such delayed cash payment is otherwise payable on an installment basis, the first payment shall include a catch-up payment covering amounts that would otherwise have been paid during the six-month period but for the application of this provision, and the balance of the installments shall be payable in accordance with their original schedule.

 

(b)           The parties intend that this Agreement will be administered in accordance with Section 409A of the Code.  To the extent that any provision of this Agreement is ambiguous as to its compliance with Section 409A of the Code, the provision shall be read in such a manner so that all payments hereunder comply with Section 409A of the Code.  The parties agree that this Agreement may be amended, as reasonably requested by either party, and as may be necessary to fully comply with Section 409A of the Code and all related rules and regulations in order to preserve the payments and benefits provided hereunder without additional cost to either party.

 

(c)           The determination of whether and when a separation from service has occurred shall be made by the Company in accordance with the presumptions set forth in Treasury Regulation Section 1.409A-1(h).

 

(d)           The Company makes no representation or warranty and shall have no liability to the Executive or any other person if any provisions of this Agreement are determined to constitute deferred compensation subject to Section 409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.

 

16.          Successors and Assigns; Entire Agreement; No Assignment.  This Agreement shall bind and inure to the benefit of the parties hereto and their respective successors or heirs, distributes and personal representatives.  This Agreement and the Confidentiality Agreement contain the entire agreement between the parties with respect to the subject matter hereof and supersede other prior and contemporaneous arrangements or understandings with respect thereto.  The Executive may not assign this Agreement without the prior written consent of the Company.

 

17.          Notices.  All notices and other communications required or permitted hereunder or necessary or convenient in connection herewith shall be in writing and shall be deemed to have been given when hand-delivered, mailed by registered or certified mail (three days after deposited), faxed (with confirmation received) or sent by a nationally recognized courier service, as follows (provided that notice of change of address shall be deemed given only when received):

 

	
If   to the Company:
    	
5   Forest View Drive
    
	
 
    	
Gladstone,   New Jersey 07934
    
	
 
    	
Attn:    CEO
    
	
 
    	
 
    
	
If   to the Executive:
    	
Gerald   Wisler
    
	
 
    	
 
    
	
With   a copy to:
    	
The   Law Office of Peter J. Weidman
    
	
 
    	
600   W. Germantown Pike, Suite 400
    

 

5

 

	
 
    	
Plymouth   Meeting, Pennsylvania 19462
    
	
 
    	
Attn:    Peter J. Weidman
    

 

or to such other names and addresses as the Company or the Executive, as the case may be, shall designate by notice to each other person entitled to receive notices in the manner specified in this Section.

 

18.          Changes; No Waiver; Remedies Cumulative.  The terms and provisions of this Agreement may not be modified or amended, or any of the provisions hereof waived, temporarily or permanently, without the prior written consent of each of the parties hereto.  Either party’s waiver or failure to enforce the terms of this Agreement or any similar agreement in one instance shall not constitute a waiver of its or his rights hereunder with respect to other violations of this or any other agreement.  No remedy conferred upon the Company or the Executive by this Agreement is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to any other remedy given hereunder or now or hereafter existing at law or in equity.

 

19.          Governing Law; Jurisdiction.  This Agreement and (unless otherwise provided) all amendments hereof and waivers and consents hereunder shall be governed by the law of the State of New Jersey, without regard to the conflicts of law principles.  Each party hereby submits himself and itself, for the sole purpose of this Agreement, the Confidentiality Agreement, and any controversy arising hereunder and thereunder, to the exclusive jurisdiction of the state and Federal courts located in the State of New Jersey, and waives any objection (on the grounds of lack of jurisdiction, forum non conveniens or otherwise) to the exercise of such jurisdiction over it by any such court in the State of New Jersey.  Each party hereby agrees that service of process may be served on him or it by certified mail, return receipt requested, or overnight courier, sent to address of such entity listed in Section 17 above (or such other address as any such party notifies the others thereof by written notice).  THE PARTIES HEREBY EXPRESSLY WAIVE THEIR RIGHTS TO HAVE A JURY TRIAL.

 

20.          Severability.  The Executive and the Company agree that should any provision of this Agreement be judicially determined invalid or unenforceable, that portion of this Agreement may be modified to comply with the law.  The Executive and the Company further agree that the invalidity or unenforceability of any provision of this Agreement will not affect the validity or enforceability of its remaining provisions.

 

21.          Execution of Other Agreements.  The Confidentiality Agreement is hereby incorporated into this Agreement in its entirety and is made an integral part of this Agreement.

 

22.          Headings; Counterparts.  All section headings are for convenience only.  This Agreement may be executed in several counterparts, each of which is an original.

 

23.          Due Diligence.  This Agreement shall be subject to and contingent upon the satisfactory results of the Company’s due diligence, such as a medical examination, satisfactory reference, background and education verification.

 

IN WITNESS WHEREOF, the parties have executed this Employment Agreement as of the date first above written.

 

	
 
    	
OMTHERA   PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Michael Davidson
    
	
 
    	
 
    	
Chief   Medical Officer
    

 

6

 

	
 
    	
EXECUTIVE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/   Gerald Wisler
    
	
 
    	
Gerald   Wisler
    

 

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EXHIBIT A

 

GENERAL RELEASE OF CLAIMS

 

For and in consideration of the payments and other benefits described in the Employment Agreement dated as of                         , 2008 (the “Agreement”) by and among Omthera Pharmaceuticals, Inc. (the “Company”), and Gerald Wisler (the “Employee”) and for other good and valuable consideration, the Employee hereby releases the Company and its respective divisions, operating companies, affiliates, subsidiaries, parents, branches, predecessors, successors, assigns, officers, directors, trustees, employees, agents, shareholders, administrators, representatives, attorneys, insurers and fiduciaries, past, present and future (the “Released Parties”) from any and all claims of any kind arising out of or related to the Employee’s employment with the Company, the Employee’s separation from employment with the Company or derivative of the Employee’s employment, which the Employee now has or may have against the Released Parties, whether known or unknown to the Employee, by reason of facts which have occurred on or prior to the date that the Employee has signed this General Release of claims.  Such released claims include, without limitation, any alleged violation of the Age Discrimination in Employment Act, as amended, the Older Worker Benefits Protection Act; Title VII of the civil Rights of 1964, as amended; Sections 1981 through 1988 of Title 42 of the United States Code; the Civil Rights Act of 1991; the Equal Pay Act; the Americans with Disabilities Act; the Rehabilitation Act; the Family and Medical Leave Act; the Fair Labor Standards Act; the Employee Retirement Income Security Act of 1974 as amended; the Worker Adjustment and Retraining Notification Act; the National Labor Relations Act; the Fair Credit Reporting Act; the Occupational Safety and Health Act; the Uniformed Services Employment and Reemployment Act; the Employee Polygraph Protection Act; the Immigration Reform control Act; the retaliation provisions of the Sarbanes-Oxley Act of 2002; the Federal False claims Act; the New Jersey Law Against Discrimination; the New Jersey Domestic Partnership Act; the New Jersey Conscientious Employee Protection Act; the New Jersey Family Leave Act; the New Jersey Wage and Hour Law; the New Jersey Equal Pay Law; the New Jersey Occupational Safety and Health Law; the New Jersey Smokers’ Rights Law; the New Jersey Workers’ Compensation Law (and including any and all amendments to the above) and/or any-other alleged violation of any federal, state or local law, regulation or ordinance, and/or contract or any other alleged violation of any federal, state or local law, regulation or ordinance, and/or contract or implied contract or tort law or public policy or whistleblower claim, having any bearing whatsoever on the Employee’s employment by and the termination of the Employee’s employment with the Company, including, but not limited to, any claim for wrongful discharge, back pay, vacation pay, sick pay, wage, commission or bonus payment, money or equitable relief or damages of any kind, attorneys’ fees, costs, and/or future wage loss.

 

It is understood that this General Release of Claims is not intended to and does not affect or release any future rights or any claims arising after the date hereof.

 

The Employee understands that the consideration provided to him under the terms of the Agreement or otherwise does not constitute any admission by the Company that it has violated any law or legal obligation.

 

 

The Employee agrees, to the fullest extent permitted by law, that he will not commence, maintain, prosecute or participate in any action or proceeding of any kind against the Company based on any of the claims waived herein occurring up to and including the date of his signature.  The Employee represents and warrants that he has not done so as of the effective date of this General Release of Claims.  Notwithstanding the foregoing agreement, representation and warranty, if the Employee violates any of the provisions of this paragraph, the Employee agrees to indemnify and hold harmless the Company from and against any and all costs, attorneys’ fees and other expenses authorized by law which result from, or are incident to, such violation.  This paragraph is not intended to preclude the Employee from (1) enforcing the terms of the Agreement; (2) challenging the knowing and voluntary nature of this General Release of Claims; or (3) filing a charge or participating in any investigation or proceeding conducted by the Equal Employment Opportunity Commission.

 

The Employee further agrees to waive his right to any monetary or equitable recovery should any federal, state or local administrative agency pursue any claims on his behalf arising out of or related to his employment with and/or separation from employment with the company and promises not to seek or accept any award, settlement or other monetary or equitable relief from any source or proceeding brought by any person or governmental entity or agency on his behalf or on behalf of any class of which he is a member with respect to any of the claims he has waived.

 

The Employee acknowledges and agrees that the Employee has read this General Release of Claims carefully, and acknowledges that he has been given at least twenty one (21) days from the date of receipt of this General Release of Claims to consider all of its terms and has been advised to consult with any attorney and any other advisors of the Employee’s choice prior to executing this General Release of Claims.  The Employee fully understands that, by signing below, the Employee is voluntarily giving up any right which the Employee may have to sue or bring any other claims against the Released Parties, including any rights and claims under the Age Discrimination in Employment Act.  The terms of this General Release of Claims shall not become effective or enforceable until eight (8) days following the date of its execution by the Employee, during which time the Employee may revoke the Agreement.  The Employee may revoke the Agreement by notifying the Company in writing (to the attention of the President and Chief Executive Officer).  For the Employee’s revocation to be effective, written notice must be received by the Company no later than the close of business on the eighth (8th) day after the Employee signs this General Release of Claims.  The terms of this offer to provide the payments and other benefits described in Section 8(a) of the Agreement will expire if not accepted during the twenty one (21) day review period.

 

The Employee agrees to keep confidential all information contained in this General Release of Claims and relating to this General Release of Claims, except (1) to the extent the Company consents in writing to such disclosure; (2) if the Employee is required by process of law to make such disclosure and the Employee promptly notifies the Company of his receipt of such process; or (3) because the Employee must disclose certain terms on a confidential basis to his financial consultant, attorney or spouse.

 

This General Release of Claims shall be construed and enforced in accordance with, and governed by, the laws of the State of New Jersey, without regard to principles of conflict of laws.

 

 

If any clause of this General Release of Claims should ever be determined to be unenforceable, it is agreed that this will not affect the enforceability of any other clause or the remainder of this General Release of Claims.

 

This General Release of Claims is final and binding and may not be changed or modified except as set forth herein or in a writing signed by both parties.  The parties have executed this General Release of Claims with full knowledge of any and all rights they may have, and they hereby assume the risk of any mistake in fact in connection with the true facts involved, or with regard to any facts which are now unknown to them.

 

By signing this General Release of claims, the Employee acknowledges that: (1) he has read this General Release of Claims completely; (2) he has had an opportunity to consider the terms of this General Release of Claims; (3) he has had the opportunity to consult with an attorney of his choosing prior to executing this General Release of Claims to explain this General Release of Claims and its consequences; (4) he knows that he is giving up important legal rights by signing this General Release of Claims; (5) he has not relied on any representation or statement not set forth in this General Release of Claims; (6) he understands and means everything that he has said in this General Release of Claims, and he agrees to all its terms; and (7) he has signed this General Release of Claims voluntarily and entirely of his own free will.

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Gerald Wisler
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date
    	
 
    	
Omthera Pharmaceuticals, Inc.
    

 

 

EXHIBIT B

 

CONFIDENTIALITY AGREEMENT

 

OMTHERA PHARMACEUTICALS, INC.

 

Employee Confidentiality, Non-Competition, Non-Solicitation and Assignment Agreement

 

In consideration and as a condition of my employment or continued employment by Omthera Pharmaceuticals, Inc. (the “Company”), I agree as follows:

 

1.                                      Proprietary Information.  I agree that all information, whether or not in writing, and whether or not disclosed before or after I was first employed by the Company, concerning the Company’s business, technology, business relationships or financial affairs which the Company has not released to the general public (collectively, “Proprietary Information”), and all tangible embodiments thereof, are and will be the exclusive property of the Company.  By way of illustration, Proprietary Information may include information or material which has not been made generally available to the public, such as:  (a) corporate information, including plans, strategies, methods, policies, resolutions, notes, email correspondence, negotiations or litigation; (b) marketing information, including strategies, methods, customer identities or other information about customers, prospect identities or other information about prospects, or market analyses or projections; (c) financial information, including cost and performance data, debt arrangements, equity structure, investors and holdings, purchasing and sales data and price lists; and (d) operational and technological information, including plans, specifications, manuals, forms, templates, software, designs, methods, procedures, formulas, discoveries, inventions, improvements, biological or chemical materials, concepts and ideas; and (e) personnel information, including personnel lists, reporting or organizational structure, resumes, personnel data, compensation structure, performance evaluations and termination arrangements or documents.  Proprietary Information also includes, without limitation, (i) information received in confidence by the Company from its customers or suppliers or other third parties and (ii) all biological or chemical materials and other tangible embodiments of the Proprietary Information.

 

2.                                      Recognition of Company’s Rights.  I will not, at any time, without the Company’s prior written permission, either during or after my employment, disclose or transfer any Proprietary Information to anyone outside of the Company, or use or permit to be used any Proprietary Information for any purpose other than the performance of my duties as an employee of the Company.  I will cooperate with the Company and use my best efforts to prevent the unauthorized disclosure of all Proprietary Information.  I will deliver to the Company all copies and other tangible embodiments of Proprietary Information in my possession or control upon the earlier of a request by the Company or termination of my employment.

 

3.                                      Rights of Others.  I understand that the  Company is now and may hereafter be subject to non-disclosure or confidentiality agreements with third persons which require the Company to protect or refrain from use of Proprietary Information.  I agree to be bound by the terms of such agreements in the event I have access to such Proprietary Information.

 

4.                                      Commitment to Company; Avoidance of Conflict of Interest.  While an employee of the  Company, I will devote my full-time efforts to the Company’s business and I will not engage in any other business activity that conflicts with my duties to the Company.  I will advise the president of the Company or his or her nominee at such time as any activity of either the Company or another business presents me with a conflict of interest or the appearance of a conflict of interest as an employee of the Company.  I will take whatever action is requested of me by the Company to resolve any conflict or appearance of conflict which it finds to exist.

 

5.                                      Developments.  I will make full and prompt disclosure to the Company of all inventions, discoveries, designs, developments, methods, modifications, improvements, processes, biological or chemical materials, algorithms, databases, computer programs, formulae, techniques, trade secrets, graphics or images, audio or visual works, and other works of authorship (collectively “Developments”), whether or not patentable or copyrightable, that are created, made, conceived or reduced to practice by me (alone or jointly with others) or under my direction during the period of my employment.  I acknowledge that all work performed by me is on a “work for hire” basis, and I hereby do assign and transfer and, to the extent any such assignment cannot be made at present, will assign and transfer, to the  Company and its successors and assigns all my right, title and interest in and to all Developments that (a) relate to therapies targeted at disorders caused by dyslipidemia; or (b) result from tasks assigned to me by the Company; or (c) result from the use of premises or personal property (whether tangible or intangible) owned, leased or

 

 

contracted for by the Company (“Company-Related Developments”), and all related patents, patent applications, trademarks and trademark applications, copyrights and copyright applications, and other intellectual property rights in all countries and territories worldwide and under any international conventions (“Intellectual Property Rights”).

 

To preclude any possible uncertainty, I have set forth on Exhibit A attached hereto a complete list of Developments that I have, alone or jointly with others, conceived, developed or reduced to practice prior to the commencement of my employment with the Company that I consider to be my property or the property of third parties and that I wish to have excluded from the scope of this Agreement (“Prior Inventions”).  If disclosure of any such Prior Invention would cause me to violate any prior confidentiality agreement, I understand that I am not to list such Prior Inventions in Exhibit A but am only to disclose a cursory name for each such invention, a listing of the party(ies) to whom it belongs and the fact that full disclosure as to such inventions has not been made for that reason.  I have also listed on Exhibit A all patents and patent applications in which I am named as an inventor, other than those which have been assigned to the Company (“Other Patent Rights”).  If no such disclosure is attached, I represent that there are no Prior Inventions or Other Patent Rights.  If, in the course of my employment with the Company, I incorporate a Prior Invention into a Company product, process, machine or research or development program or other work done for the Company, I hereby grant to the Company a nonexclusive, royalty-free, fully paid-up, irrevocable, worldwide license (with the full right to sublicense through multiple tiers) to make, have made, modify, use, sell, offer for sale and import such Prior Invention.  Notwithstanding the foregoing, I will not incorporate, or permit to be incorporated, Prior Inventions in any Company-Related Development without the Company’s prior written consent.

 

This Agreement does not obligate me to assign to the Company any Development which, in the sole judgment of the Company, reasonably exercised, is developed entirely on my own time and does not relate to the business efforts or research and development efforts in which, during the period of my employment, the Company actually is engaged or reasonably would be engaged, and does not result from the use of premises or equipment owned or leased by the Company.  However, I will also promptly disclose to the Company any such Developments for the purpose of determining whether they qualify for such exclusion.  I understand that to the extent this Agreement is required to be construed in accordance with the laws of any state which precludes a requirement in an employee agreement to assign certain classes of inventions made by an employee, this paragraph 5 will be interpreted not to apply to any invention which a court rules and/or the Company agrees falls within such classes.  I also hereby waive all claims to any moral rights or other special rights which I may have or accrue in any Company-Related Developments.

 

6.                                      Documents and Other Materials.  I will keep and maintain adequate and current records of all Proprietary Information and Company-Related Developments conceived by me during my employment, which records will be available to and remain the sole property of the Company at all times.

 

All files, letters, notes, memoranda, reports, records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, program listings, blueprints, models, prototypes, or other written, photographic or other tangible material containing Proprietary Information, whether created by me or others, which come into my custody or possession, are the exclusive property of the Company to be used by me only in the performance of my duties for the Company.  Any property situated on the Company’s premises and owned by the Company, including without limitation computers, disks and other storage media, filing cabinets or other work areas, is subject to inspection by the Company at any time with or without notice.  In the event of the termination of my employment for any reason, I will deliver to the Company all files, letters, notes, memoranda, reports, records, data, sketches, drawings, notebooks, layouts, charts, quotations and proposals, specification sheets, program listings, blueprints, models, prototypes, materials or other written, photographic or other tangible material containing or embodying Proprietary Information, and other materials of any nature pertaining to the Proprietary Information of the Company and to my work, and will not take or keep in my possession any of the foregoing or any copies.

 

7.                                      Enforcement of Intellectual Property Rights.  I will cooperate fully with the Company, both during and after my employment with the Company, with respect to the procurement, maintenance and enforcement of Intellectual Property Rights in Company-Related Developments, as well as all other patent rights, trademarks, copyrights and other Intellectual Property Rights in all countries and territories worldwide owned by or licensed to the Company.  I will sign, both during and after the term of this Agreement,  all papers, including without limitation copyright applications, patent applications,

 

2

 

declarations, oaths, assignments of priority rights, and powers of attorney, which the Company may deem necessary or desirable in order to protect its rights and interests in any Company-Related Development or Intellectual Property Rights.  If the Company is unable, after reasonable effort, to secure my signature on any such papers, I hereby irrevocably designate and appoint each officer of the Company as my agent and attorney-in-fact to execute any such papers on my behalf, and to take any and all actions as the Company may deem necessary or desirable in order to protect its rights and interests in the same.

 

8.                                      Non-Competition and Non-Solicitation.  In order to protect the Company’s Proprietary Information and good will, during my employment and for a period of twelve months following the termination of my employment for any reason (the “Restricted Period”), I will not directly or indirectly, whether as owner, partner, shareholder, director, consultant, agent, employee, co-venturer or otherwise, engage, participate or invest in any business activity anywhere in the world that develops, manufactures or markets any products, or performs any services, that are otherwise competitive with or similar to the products or services of the Company, or products or services that the Company has under development or that are the subject of active planning at any time during my employment; provided that this will not prohibit any possible investment in publicly traded stock of a company representing less than one percent of the stock of such company.  In addition, during the Restricted Period, I will not, directly or indirectly, in any manner, other than for the benefit of the Company, (a) call upon, solicit, divert or take away any of the customers, business or prospective customers of the Company or any of its suppliers, and/or (b) solicit, entice or attempt to persuade any other employee or consultant of the Company to leave the services of the Company for any reason.  I acknowledge and agree that if I violate any of the provisions of this paragraph 8, the running of the Restricted Period will be extended by the time during which I engage in such violation(s).

 

9.                                      Government Contracts.  I acknowledge that the Company may have from time to time agreements with other persons or with the United States Government or its agencies which impose obligations or restrictions on the Company regarding inventions made during the course of work under such agreements or regarding the confidential nature of such work.  I agree to comply with any such obligations or restrictions upon the direction of the Company. In addition to the rights assigned under paragraph 5, I also assign to the Company (or any of its nominees) all rights which I have or acquired in any Developments, full title to which is required to be in the United States under any contract between the Company and the United States or any of its agencies.

 

10.                               Prior Agreements.  I hereby represent that, except as I have fully disclosed previously in writing to the Company, I am not bound by the terms of any agreement with any previous employer or other party to refrain from using or disclosing any trade secret or confidential or proprietary information in the course of my employment with the Company or to refrain from competing, directly or indirectly, with the business of such previous employer or any other party.  I further represent that my performance of all the terms of this Agreement as an employee of the Company does not and will not breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me in confidence or in trust prior to my employment with the Company. I will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others.

 

11.                               Remedies Upon Breach.  I understand that the restrictions contained in this Agreement are necessary for the protection of the business and goodwill of the Company and I consider them to be reasonable for such purpose.  Any breach of this Agreement is likely to cause the Company substantial and irrevocable damage and therefore, in the event of such breach, the  Company, in addition to such other remedies which may be available, will be entitled to specific performance and other injunctive relief.

 

12.                               Use of Voice, Image and Likeness.  I give the Company permission to use any and all of my voice, image and likeness, with or without using my name, in connection with the products and/or services of the Company, for the purposes of advertising and promoting such products and/or services and/or the Company, and/or for other purposes deemed appropriate by the Company in its reasonable discretion, except to the extent expressly prohibited by law.

 

13.                               Publications and Public Statements.  I will obtain the Company’s written approval before publishing or submitting for publication any material that relates to my work at the Company and/or incorporates any Proprietary Information.  To ensure that the Company delivers a consistent message about its products, services and operations to the public, and further in recognition that even positive

 

3

 

statements may have a detrimental effect on the Company in certain securities transactions and other contexts, any statement about the Company which I create, publish or post during my period of employment and for six (6) months thereafter, on any media accessible by the public, including but not limited to electronic bulletin boards and Internet-based chat rooms, must first be reviewed and approved by an officer of the Company before it is released in the public domain.

 

14.                               No Employment Obligation.  I understand that this Agreement does not create an obligation on the  Company or any other person to continue my employment.  I acknowledge that, unless otherwise agreed in a formal written employment agreement signed on behalf of the Company by an authorized officer, my employment with the Company is at will and therefore may be terminated by the Company or me at any time and for any reason.

 

15.                               Survival and Assignment by the Company.  I understand that my obligations under this Agreement will continue in accordance with its express terms regardless of any changes in my title, position, duties, salary, compensation or benefits or other terms and conditions of employment. I further understand that my obligations under this Agreement will continue following the termination of my employment regardless of the manner of such termination and will be binding upon my heirs, executors and administrators.  The Company will have the right to assign this Agreement to its affiliates, successors and assigns.  I expressly consent to be bound by the provisions of this Agreement for the benefit of the Company or any parent, subsidiary or affiliate to whose employ I may be transferred without the necessity that this Agreement be resigned at the time of such transfer.

 

16.                               Exit Interview.  If and when I depart from the Company, I may be required to attend an exit interview and sign an “Employee Exit Acknowledgement” to reaffirm my acceptance and acknowledgement of the obligations set forth in this Agreement.  For twelve (12) months following termination of my employment, I will notify the Company of any change in my address and of each subsequent employment or business activity, including the name and address of my employer or other post-Company employment plans and the nature of my activities.

 

17.                               Disclosure to Future Employers. I will provide a copy of this Agreement to any prospective employer, partner or coventurer prior to entering into an employment, partnership or other business relationship with such person or entity.

 

18.                               Severability.  In case any provisions (or portions thereof) contained in this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect the other provisions of this Agreement, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.  If, moreover, any one or more of the provisions contained in this Agreement shall for any reason be held to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed by limiting and reducing it, so as to be enforceable to the extent compatible with the applicable law as it shall then appear.

 

19.                               Entire Agreement.  This Agreement constitutes the entire and only agreement between the Company and me respecting the subject matter hereof, and supersedes all prior agreements and understandings, oral or written, between us concerning such subject matter.  No modification, amendment, waiver or termination of this Agreement or of any provision hereof will be binding unless made in writing and signed by an authorized officer of the Company.  Failure of the Company to insist upon strict compliance with any of the terms, covenants or conditions hereof will not be deemed a waiver of such terms, covenants or conditions.  In the event of any inconsistency between this Agreement and any other contract between the Company and me, the provisions of this Agreement will prevail.

 

20.                               Interpretation.  This Agreement will be deemed to be made and entered into in the State of New Jersey, and will in all respects be interpreted, enforced and governed under the laws of the State of New Jersey.  I hereby agree to consent to personal jurisdiction of the state and federal courts situated within New Jersey for purposes of enforcing this Agreement, and waive any objection that I might have to personal jurisdiction or venue in those courts.

 

[End of Text]

 

4

 

I UNDERSTAND THAT THIS AGREEMENT AFFECTS IMPORTANT RIGHTS.  BY SIGNING BELOW, I CERTIFY THAT I HAVE READ IT CAREFULLY AND AM SATISFIED THAT I UNDERSTAND IT COMPLETELY.

 

IN WITNESS WHEREOF,  the undersigned has executed this agreement as a sealed instrument as of the date set forth below.

 

 

	
Signed:
    	
 
    	
 
    
	
(Employee’s   full name)
    	
 
    
	
 
    	
 
    	
 
    
	
Type or print name:
    	
 
    	
 
    	
 
    
	
Social   Security Number:
    	
 
    	
 
    	
Date:
    	
 
    
							

 

 

EXHIBIT A

 

To:                                                                         Omthera Pharmaceuticals, Inc.

 

From:

 

Date:

 

SUBJECT:                                 Prior Inventions

 

The following is a complete list of all inventions or improvements relevant to the subject matter of my employment by the Company that have been made or conceived or first reduced to practice by me alone or jointly with others prior to my engagement by the Company:

 

No inventions or improvements

 

See below:

 

 

Additional sheets attached

 

The following is a list of all patents and patent applications in which I have been named as an inventor:

 

None

 

See below:

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