Document:

<PAGE>
                                                                    Exhibit 10.8

                    AMENDMENT NO. 2 TO TERMINATION AGREEMENT

     THIS AMENDMENT NO. 2 TO TERMINATION AGREEMENT (this "SECOND AMENDMENT") is
made and effective on this 31st day of August 2004 by and between Valera
Pharmaceuticals, Inc., a Delaware corporation ("VALERA"), and The Population
Council, Inc., a not-for-profit New York corporation ("THE COUNCIL").

                                   BACKGROUND

     GP Strategies Corporation, the successor to National Patent Development
Corporation (collectively "GP STRATEGIES"), and The Council are parties to an
agreement entitled "Termination of Agreement dated September 12, 1990" that was
signed on October 1, 1997 by GP Strategies and September 26, 1997 by The Council
and was subsequently amended by an Amendment dated as of November 29, 2001
(collectively, the "TERMINATION AGREEMENT"). GP Strategies assigned the
Termination Agreement to Valera and Valera accepted all of the rights and
responsibilities of GP Strategies thereunder. Valera and The Council desire to
amend the Termination Agreement as set forth in this Second Amendment.

                                      TERMS

     NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Valera and The Council agree as
follows:

1. AMENDMENT TO PARAGRAPH 5 OF THE TERMINATION AGREEMENT.  Paragraph 5 of the
Termination Agreement is deleted in its entirety and replaced with the
following:

     5. Allocation of Royalties and Net Sales.

          (a) NPDC shall pay to The Council, within thirty (30) days following
NPDC's receipt of Royalties (as defined in Paragraph 5(d)(vii)), an amount equal
to the following percentages of Royalties:

               (i) one hundred percent (100%) of the first thirty five thousand
dollars ($35,000) of Royalties, as a fee for the transfer of the IND sponsorship
to NPDC from The Council;

               (ii) after payment in accordance with Paragraph 5(a)(i), thirty
percent (30%) of Royalties from grants of licenses to the LHRH Implant to
Licensees to the extent involving the use or sale of a LHRH Implant in the NPDC
Territory (as defined in Paragraph 5(d)(vi)); and

               (iii) after payment in accordance with Paragraph 5(a)(i), five
percent (5%) of Royalties from grants of licenses to the Non-LHRH Implant to
Licensees to the extent involving the use or sale of a Non-LHRH Implant in the
NPDC Territory.

          (b) NPDC shall also pay to The Council, on or before the 30th day
following the end of each calendar quarter, the following amounts:
<PAGE>
               (i) three percent (3%) of NPDC Net Sales received during the just
completed calendar quarter from Commercial Sales (as defined in Paragraph
5(d)(i)) of LHRH Implants; and

               (ii) one-half of one percent (0.5%) of NPDC Net Sales received
during the just completed calendar quarter from Commercial Sales of Non-LHRH
Implants.

          (c) NPDC shall also cause each Non-NPDC Territory Licensee (as defined
in Paragraph 5(d)(iv)) to pay The Council, on or before sixty (60) days
following the end of each calendar quarter, the following amounts:

               (i) four percent (4%) of Non-NPDC Net Sales (as defined in
Paragraph 5(d)(ii)) received during the just completed calendar quarter from
Commercial Sales of LHRH Implants by such Non-NPDC Territory Licensee; and

               (ii) two thirds of one percent (0.667%) of Non-NPDC Net Sales
received during the just completed calendar quarter from Commercial Sales of
Non-LHRH Implants by such Non-NPDC Territory Licensee.

               (iii) Notwithstanding anything herein to the contrary, NPDC shall
be liable to The Council for payments due to the Council pursuant to Paragraph
5(c) and shall be discharged from the obligation to make any such payment at the
time that such payment is received in full by The Council from the Non-NPDC
Territory Licensee.

          (d) For purposes of this Paragraph 5, the following terms shall have
the following meanings:

               (i) "Commercial Sale" means, as the context requires (1) a sale
of an Implant by NPDC for commercial use (or resale which will ultimately result
in commercial use) in the NPDC Territory or a sale to a Non-NPDC Territory
Licensee for use or sale in the NPDC Territory but specifically excluding sales
of Implants by NPDC that are used for research, development, investigation,
clinical trials or as samples or that are sold to a Non-NPDC Territory licensee
for use or sale in the Non-NPDC Territory or (2) a sale of an Implant by a
Non-NPDC Territory Licensee to a third party for commercial use (or resale which
will ultimately result in commercial use) in the Non-NPDC Territory but
specifically excluding sales of Implants by a Non-NPDC Territory Licensee that
are used for research, development, investigation, clinical trials or as
samples.

               (ii) "Non-NPDC Net Sales" means gross revenues received by
Non-NPDC Territory Licensees with respect to the Commercial Sales of Implants by
Non-NPDC Territory Licensees described in clause (2) of Paragraph 5(d)(i) less
the aggregate of (1) returns and/or credits for returns, (2) sales tax, value
added tax, goods and services tax or any other tax that may be imposed on the
sale of Implants, (3) promotional, cash, trade or volume discounts including
those resulting from governmental or managed care contracts and (4) freight,
transport and delivery (including insurance).

               (iii) "Non-NPDC Territory" means the nations and countries within
the European Union, all nations and countries that accede to the European Union
subsequent to the

                                       -2-
<PAGE>
date hereof, Australia, Brunei, Cambodia, China, India, Indonesia, Laos,
Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and
Vietnam.

               (iv) "Non-NPDC Territory Licensee" means a Licensee who is
authorized by NPDC to make Commercial Sales in the Non-NPDC Territory.

               (v) "NPDC Net Sales" means gross revenues received by NPDC with
respect to the Commercial Sales of Implants by NPDC described in clause (1) of
Paragraph 5(d)(i) less the aggregate of (1) returns and/or credits for returns,
(2) sales tax, value added tax, goods and services tax or any other tax that may
be imposed on the sale of Implants, (3) promotional, cash, trade or volume
discounts including those resulting from governmental or managed care contracts
and (4) freight, transport and delivery (including insurance).

               (vi) "NPDC Territory" means all nations and countries of the
world other than the nations or countries comprising the Non-NPDC Territory.

               (vii) "Royalties" means revenues (or the fair market value of
non-monetary consideration) received by NPDC from Licensees, whether or not in
the form of royalties, prepaid royalties, advances on royalties, licensing fees,
technology transfer payments or other similar payments, in respect of licenses
for the Implants. Notwithstanding the foregoing, Royalties shall not include
moneys received by NPDC from Licensees and applied to usual and customary
Implant product development costs, including, without limitation, feasibility
studies, pre-clinical studies, animal studies, clinical trials, production
scale-up, and regulatory compliance, research fees, the manufacturing cost of
Implants or moneys that are included in the calculation of NPDC Net Sales.

          (e) NPDC shall maintain and shall cause Non-NPDC Territory Licensees
to maintain, in accordance with generally accepted accounting principles
consistently applied, accurate records of all sales or other disposition of any
Implants upon which amounts shall be payable pursuant to this Paragraph 5.
Within one hundred and twenty (120) days after the conclusion of each calendar
year (1) NPDC shall furnish to The Council a certification by its internal
accountants showing the quantity, sales prices, product development costs and
amounts due with respect to sales of any Implants for the preceding year and (2)
NPDC shall cause each Non-NPDC Territory Licensee to furnish to The Council a
certification by its internal accountants showing the quantity, sales prices,
product development costs and amounts due with respect to sales of any Implants
for the preceding year. Should The Council wish to audit such records, it may
engage, at its own expense, independent public accountants reasonably acceptable
to NPDC or the Non-NPDC Territory Licensee, as the case may be, to conduct such
an audit during normal business hours and on reasonable notice to NPDC or the
Non-NPDC Territory Licensee, as the case may be. The Council's right to audit
and bring any action with respect to a particular payment period shall be
limited to the two (2) year period following the issuance of the certification.
The Council agrees to keep confidential all information relating to the business
affairs of NPDC and the Non-NPDC Territory Licensees and to impose on its
accountants a similar obligation.

                                       -3-
<PAGE>
          (f) Notwithstanding the foregoing, in no event shall amounts paid to
The Council hereunder exceed the aggregate amount of forty million thirty five
thousand dollars ($40,035,000).

2. PATIENT ASSISTANCE PROGRAM.  The following provision is added to the
Termination Agreement as Paragraph 10:

     10. Patient Assistance Program.  NPDC shall establish within one year (1)
after the first commercial sale of the LHRH Implant in the United States for the
treatment of prostate cancer, and maintain for a period ending on the earlier of
(a) ten (10) years after establishment or (b) the cessation of marketing of the
LHRH Implant in the United States for the treatment of prostate cancer (the
"Patient Assistance Program Period"), a patient assistance program substantially
similar to the program described in Exhibit C hereto. During the Patient
Assistance Program Period, within one hundred and twenty (120) days after the
conclusion of each calendar year, NPDC shall furnish to The Council a report
showing the total number of LHRH Implants that were sold in the United States in
the preceding year and the total number of LHRH Implants that were distributed
to patients through the Patient Assistant Program in such preceding year.

3. NO CHANGES.  Except as expressly modified or amended by this Second
Amendment, the terms and provisions of the Termination Agreement shall remain in
full force and effect in accordance with the terms thereof; provided, however,
from and after the date of this Second Amendment any reference to the
Termination Agreement shall be deemed and construed as meaning the Termination
Agreement as modified by this Second Amendment.

                            (SIGNATURE PAGE FOLLOWS)

                                      -4-
<PAGE>
     IN WITNESS WHEREOF, the parties have caused this Second Amendment to be
executed by their duly authorized representative.

VALERA PHARMACEUTICALS, INC.            THE POPULATION COUNCIL, INC.

By: /s/ David Tierney                   By: /s/ Sandra P. Arnold
    --------------------------------        ------------------------------------
Name: David Tierney                     Name: Sandra P. Arnold

Title: Chief Executive Officer          Title: Vice President
<PAGE>
                                    EXHIBIT C

                  VANTAS PATIENT ASSISTANCE PROGRAM INFORMATION

The Vantas Patient Assistance Program (the "PAP") is intended to assist patients
with prostate cancer who are prescribed the LHRH Implant but who do not have
health benefits through private insurance or a government-funded program (such
as Medicare or Medicaid) that cover the purchase price for the LHRH Implant and
do not have sufficient income to afford the LHRH Implant. Because the LHRH
Implant is expected to be covered by Medicare, it is expected that the PAP will
be directed to patients younger than 65 years old who are not blind or disabled.
The assistance will involve identifying programs that would cover the purchase
price of the LHRH Implant for the patient and if no such program can be
identified, making the LHRH Implant available to the patient at no cost.

The PAP will be administered by Valera or a third party administrator with
experience with these types of programs such as PAREXEL (the "Administrator").
Valera sales professionals will provide the toll free phone number for the PAP
to physicians and their staff on "leave behind" promotional materials. Sales
representatives will also be trained to make physicians aware of the PAP.

The eligibility requirements for the PAP are as follows:

     1.   The patient must have been prescribed the LHRH Implant for treatment
          of prostate cancer;

     2.   The patient must be a citizen of or lawfully resident in the United
          States;

     3.   The patient must either have no health benefits from any private or
          government program or have been informed that such health benefits do
          not cover the purchase price of the LHRH Implant;

     4.   The patient must have an annual income equal to or less than 200% of
          the then- current Federal Poverty Level; and

     5.   Such other reasonable eligibility requirements that Valera determines
          are necessary to limit the PAP to indigent patients in light of
          then-current conditions, laws, rules and regulations.

The Administrator will work with any patient referred to the PAP to determine
their eligibility, and the patient will be required to supply documentation
necessary to establish their eligibility for the PAP. For patients that have
health benefits but have been informed that such health benefits do not cover
the purchase price of the LHRH Implant, the Administrator will attempt to verify
coverage from the patient's current plan. The Administrator will also refer
patients to Medicaid, if the patient has no insurance and meets the Medicaid
income guidelines. If, ultimately, no health benefits can be identified to pay
for the LHRH Implant and the patient is otherwise eligible for the PAP, the
Administrator will provide the LHRH Implant at no cost to the patient's
physician for him or her to administer.
<PAGE>
The above process for any given patient is expected to take at least 72 hours
but may take several weeks in certain instances. The PAP donation is contingent
on the patient providing all necessary documentation to establish eligibility.
The PAP does not cover any professional fees (such as fees for implantation or
explantation of the LHRH Implant) or supplies not included with the then-current
LHRH Implant kit.<PAGE>
                                                                    Exhibit 10.9

                                 LEASE AGREEMENT

BY AND BETWEEN:

                       Cedar Brook Corporate Center, L.P.

                                                                      "Landlord"

          - and -

                     National Patent Development Corporation

                                                                        "Tenant"

PREMISES: 8 Cedar Brook Drive
          Cranbury, New Jersey 08512

DATED: _________, 199__
<PAGE>
                                TABLE OF CONTENTS

<TABLE>
<S>                                                                          <C>
1.    LEASED PREMISES.....................................................    1

2.    TERM OF LEASE.......................................................    1

3.    CONSTRUCTION........................................................    1

4.    RENT................................................................    2

5.    PARKING AND USE OF EXTERIOR AREA....................................    3

6.    USE.................................................................    3

7.    REPAIRS AND MAINTENANCE.............................................    3

8.    COMMON AREA EXPENSES & MANAGEMENT FEE...............................    4

9.    SIGNS...............................................................    6

10.   ASSIGNMENT AND SUBLETTING...........................................    7

11.   FIRE AND CASUALTY...................................................    7

12.   COMPLIANCE WITH LAWS, RULES AND REGULATIONS.........................    9

13.   INSPECTION BY LANDLORD..............................................   11

14.   DEFAULT BY TENANT...................................................   11

15.   LIABILITY OF TENANT FOR DEFICIENCY..................................   13

16.   NOTICES.............................................................   14

17.   NON-WAIVER BY LANDLORD..............................................   14

18.   RIGHT OF TENANT TO MAKE ALTERATIONS AND IMPROVEMENTS................   14

19.   NON-LIABILITY OF LANDLORD...........................................   14

20.   RESERVATION OF EASEMENT.............................................   15

21.   STATEMENT OF ACCEPTANCE.............................................   15

22.   FORCE MAJEURE.......................................................   15

23.   STATEMENTS BY LANDLORD AND TENANT...................................   15

24.   CONDEMNATION........................................................   16

25.   LANDLORD'S REMEDIES.................................................   16

26.   QUIET ENJOYMENT.....................................................   17

27.   SURRENDER OF PREMISES...............................................   17

28.   INDEMNITY...........................................................   17

29.   LEASE CONSTRUCTION..................................................   18
</TABLE>
<PAGE>
<TABLE>
<S>                                                                          <C>
30.   BIND AND INURE CLAUSE...............................................   18

31.   INCLUSIONS..........................................................   18

32.   DEFINITION OF TERM "LANDLORD".......................................   18

33.   COVENANTS OF FURTHER ASSURANCES.....................................   19

34.   COVENANT AGAINST LIENS..............................................   19

35.   SUBORDINATION.......................................................   19

36.   EXCULPATION OF LANDLORD.............................................   19

37.   NET RENT............................................................   20

38.   SECURITY............................................................   20

39.   BROKERAGE...........................................................   20

40.   LATE CHARGES........................................................   20

41.   RESERVED SPACE......................................................   20

42.   OPTION TO RENEW.....................................................   21
</TABLE>
<PAGE>
          AGREEMENT, made ___________, 1997, between Cedar Brook Corporate
Center, L.P., 1000 Eastpark Blvd., Cranbury, New Jersey 08512, "Landlord"; and
National Patent Development Corporation, Suite 4170, 9 West 57th St., New York,
NY 10019, "Tenant".

                                   WITNESSETH:

          WHEREAS, the Landlord intends to lease to the Tenant 8 Cedar Brook
Dr., Cranbury, New Jersey 08512, ("Leased Premises") constituting a portion of
the office/industrial park known as Cedar Brook Corporate Center; and

          WHEREAS, the parties hereto wish to mutually define their rights,
duties and obligations in connection with the said lease;

          NOW THEREFORE, in consideration of the promises set forth herein, the
Landlord leases unto the Tenant and the Tenant rents from the Landlord the
Leased Premises described in Paragraph 1, and the Landlord and Tenant do hereby
mutually covenant and agree as follows:

     1.   LEASED PREMISES

          The Leased Premises shall consist of 7672 square feet of office space
and 4800 square feet of Laboratory/Production space, outside dimensions to
center line of common wall, identified on the plot plan attached hereto and made
a part hereof as Schedule "A", together with all improvements to be constructed
thereon by the Landlord for the use of the Tenant, and all easements,
improvements, tenements, appurtenances, hereditaments, fixtures and rights and
privileges appurtenant thereto, and any and all fixtures and equipment which are
to be installed in said building by the Landlord for the use of the Tenant in
its occupancy of the Leased Premises.

     2.   TERM OF LEASE

          The term of the Lease shall be 5 years, to commence on or about
February 1, 1998 and to end January 31, 2003, which dates are subject to the
construction provisions set forth below.

     3.   CONSTRUCTION

          3.1 The Landlord shall substantially complete the Leased Premises in
accordance with the plans, specification and work letter ("Plans") to be agreed
to between the Landlord and
<PAGE>
          AGREEMENT, made ___________, 1997, between Cedar Brook Corporate
Center, L.P., 1000 Eastpark Blvd., Cranbury, New Jersey 08512, "Landlord"; and
National Patent Development Corporation, Suite 4170, 9 West 57th St., New York,
NY 10019, "Tenant".

                                   WITNESSETH:

          WHEREAS, the Landlord intends to lease to the Tenant 8 Cedar Brook
Dr., Cranbury, New Jersey 08512, ("Leased Premises") constituting a portion of
the office/industrial park known as Cedar Brook Corporate Center; and

          WHEREAS, the parties hereto wish to mutually define their rights,
duties and obligations in connection with the said lease;

          NOW THEREFORE, in consideration of the promises set forth herein, the
Landlord leases unto the Tenant and the Tenant rents from the Landlord the
Leased Premises described in Paragraph 1, and the Landlord and Tenant do hereby
mutually covenant and agree as follows:

     1.   LEASED PREMISES

          The Leased Premises shall consist of 7672 square feet of office space
and 4800 square feet of Laboratory/Production space, outside dimensions to
center line of common wall, identified on the plot plan attached hereto and made
a part hereof as Schedule "A", together with all improvements to be constructed
thereon by the Landlord for the use of the Tenant, and all easements,
improvements, tenements, appurtenances, hereditaments, fixtures and rights and
privileges appurtenant thereto, and any and all fixtures and equipment which are
to be installed in said building by the Landlord for the use of the Tenant in
its occupancy of the Leased Premises.

     2.   TERM OF LEASE

          The term of the Lease shall be 5 years, to commence on or about
February 1, 1998 and to end January 31, 2003, which dates are subject to the
construction provisions set forth below.

     3.   CONSTRUCTION

          3.1 The Landlord shall substantially complete the Leased Premises in
accordance with the plans, specification and work letter ("Plans") to be agreed
to between the Landlord and
<PAGE>
Tenant, in writing. The Plans shall be prepared by the Landlord after
consultation with the Tenant and shall incorporate the tenant improvements set
forth in the letter of Cedar Brook Corporate Center, L.P. dated July 14, 1997.
The Plans shall be approved by both parties at least 90 days prior to the
Commencement Date, or such date shall be extended by mutual agreement. The cost
of such work shall be borne by the Landlord, with completion evidenced by either
a Permanent or Temporary Certificate of Occupancy, or a Permanent or Temporary
Certificate of Acceptance ("CO/CA") issued by the governmental instrumentality
having jurisdiction thereof. It is agreed that for the purpose of this Lease,
wherever and whenever the term "substantial completion" is used, it shall not
include items of maintenance, service, punch list or guarantee. The Leased
Premises shall be considered substantially completed upon the issuance of a
CO/CA. In the event this Lease is executed on or before September 30, 1997, and
Landlord has not obtained the CO/CA by May 11, 1998, Tenant may terminate this
Lease. However, if the Lease is executed after September 30, 1997, one day shall
be added to the May 11, 1998 termination date for each day that the execution of
the Lease is delayed beyond September 30, 1997.

          3.2 After consultation with the Tenant, the Landlord shall have the
right to substitute for the materials and equipment required by the Plans,
materials and equipment of equal quality and standard, provided said
substitutions conform with applicable building codes. In the event the premises
are substantially completed prior to or after February 1, 1998, the lease term
shall commence on the first day of the next succeeding month (hereinafter called
the "Commencement Date") and shall continue for a term of 5 years thereafter.
The Tenant shall, however, pay to the Landlord a sum equal to the pro rata share
of one (1) month's rent for that portion of the month prior to the Commencement
Date. During said period of partial monthly occupancy, all other terms and
conditions of this Lease shall apply.

     4.   RENT

          4.1 The Tenant covenants and agrees to pay the annual rent of
$311,800, ("Original Base Rent") in equal monthly installments in the sum of
$25,983.33, which monthly payments shall be made promptly in advance on the
first day of each and every month during the term of the Lease without demand
and without off-set or deduction, together with such additional rent and other
charges required to be paid by Tenant as are hereinafter set forth, all of which
charges shall be considered additional rent.

                                        2
<PAGE>
          4.2 Tenant shall pay as additional rent its proportionate share of the
repairs, maintenance, taxes, insurance and any other charges allocated amongst
the Tenants as set forth in Paragraph 8. Tenants Proportionate Share shall be
based on the relationship between the gross square footage leased to Tenant and
the gross square footage of building construction completed in the
office/industrial park to date. Tenant's Proportionate Share shall adjust over
time as additional space is constructed in the office/industrial park. Tenant
shall also pay additional rent for the Reserved Space set forth in Paragraph 41
hereof. Notwithstanding this Paragraph 4.2, the amount set forth in Paragraph
8.1 shall constitute the non-tax portion of the Common Area Expenses.

     5.   PARKING AND USE OF EXTERIOR AREA

          Landlord shall allocate 4 parking spaces in the front of Tenant's
space, for the exclusive use of Tenant and the Tenant shall have the right to
use all other parking spaces in common with other tenants of the
office/industrial park. Landlord reserves the right to allocate any other
parking spaces as it chooses. The Landlord and Tenant mutually agree that they
will not block, hinder or otherwise obstruct the access driveways and parking
areas so as to impede the free flow of vehicular traffic on the property. In
connection with the use of the loading platforms, if any, Tenant agrees that it
will not use the same so as to unreasonably interfere with the use of the access
driveways and parking areas. Tenant shall not store trailers or other vehicles
on any portion of the access driveways or parking areas, and may not utilize any
portion of the land outside of the Leased Premises for any purpose unless
consented to in advance by Landlord.

     6.   USE

          The Tenant covenants and agrees to use and occupy the Leased Premises
only as laboratory, production and office use, as set forth in the letter from
Hydro Med Sciences attached hereto as Schedule "B", which use is expressly
subject to all applicable zoning ordinances, rules and regulations of any
governmental instrumentalities, boards or bureaus having jurisdiction thereof.
Landlord shall provide the municipal zoning officer with a copy of Schedule "B"
and obtain a confirmation from him that all such uses are permitted in the
Leased Premises.

     7.   REPAIRS AND MAINTENANCE

          7.1 Tenant shall generally maintain and repair the Leased Premises,
and shall, at the expiration of the term, deliver the Leased Premises in good
order and condition, damages by fire or casualty, the elements and ordinary wear
and tear excepted. The Tenant covenants and agrees that it shall not cause or
permit any waste, damage or disfigurement to the Leased Premises, or any

                                        3
<PAGE>
overloading of the floors. The Tenant shall make all repairs to the floor
surface, the electrical and plumbing systems located within the Leased Premises,
including all ballasts and fluorescent fixtures. Landlord shall be responsible
for repairs necessary to the roof, exterior and load-bearing walls, and electric
and plumbing systems to the point where they enter the Leased Premises, unless
repair is necessitated by any act of Tenant or its agents. Landlord shall also
be responsible for the repair, replacement and maintenance of the HVAC system,
except for emergency situations in the laboratory area where Landlord shall only
be responsible for the cost of parts and materials. In such emergency
situations, Tenant shall arrange for the repair and replacement of the HVAC
system and shall separately bill the Landlord for the cost of parts and
materials.

          7.2 The Tenant shall, at its own cost and expense, pay all utility
meter and service charges, including gas and electric. The Tenant agrees to
maintain the warehouse area at a minimum temperature of 45 degrees to prevent
the freezing of domestic water and sprinkler pipes. Tenant shall not store any
garbage or recyclables outside the Leased Premises, and shall deliver its
garbage and recyclables to the central receiving area.

     8.   COMMON AREA EXPENSES & MANAGEMENT FEE

          8.1 The Tenant shall be responsible for its Proportionate Share of the
following items all of which shall be known as Common Area Expenses:

          (a) The costs incurred by the Landlord for the expense, maintenance or
repair of the following:

               (1)  lawns and shrubbery:

               (2)  water and standby sprinkler charges;

               (3)  exterior lighting;

               (4)  exterior sewer lines;

               (5)  exterior utility lines;

               (6)  repair and maintenance of any signs serving the
                    office/industrial park;

               (7)  snow removal;

               (8)  garbage disposal;

               (9)  general ground maintenance;

               (10) parking lot, driveways and walkways;

               (11) maintenance contract for the roof, HVAC and building site;

                                        4
<PAGE>
               (12) pest control;

               (13) central station monitoring; and

               (14) other maintenance expenses normally incurred by Landlord.

          (b) The annual insurance premiums charged to the Landlord for
insurance coverage which insures the building of which the Leased Premises is a
part. The insurance shall be for the full replacement value of all insurable
improvements with any customary extensions of coverage including, but not
limited to, vandalism, malicious mischief, sprinkler damage and comprehensive
liability, and insurance for one year's rent. Any increase in the insurance
premiums due to a change in rating of the building which is solely attributable
to Tenant's use, or due to special Tenant equipment, shall be paid entirely by
the Tenant. Tenant shall pay the cost of the items set forth in Paragraphs 8.1
(a) and (b) to the Landlord, monthly, as additional rent, based on the following
schedule:

<TABLE>
<CAPTION>
Year   $ amount/sq.ft. of leased space
----   -------------------------------
<S>                  <C>
1998                 1.57
1999                 1.65
2000                 1.73
2001                 1.82
2002                 1.91
</TABLE>

          8.2 Tenant shall also pay, as additional rent, its proportionate share
of the real estate and personal property taxes assessed against the Leased
Premises for land, building and improvements, along with any levy for the
installation of local improvements affecting the Leased Premises assessed by any
governmental body having jurisdiction thereof. Landlord shall provide Tenant
with an annual statement indicating the amount of its monthly tax payment, along
with a copy of the municipal tax bill. The real estate tax obligation of the
Tenant shall include any tax or imposition for parking lot usage which may be
levied by any governmental body having jurisdiction thereof. In addition to its
Proportionate Share of the above items, Tenant shall pay directly all real
estate taxes assessed by the municipality on its Tenant improvements. In the
event the building has not been assessed or Landlord has not received a tax bill
by the Commencement Date, Tenant shall still be responsible for its
proportionate share of taxes, and shall pay same, retroactive to the
Commencement Date, within 10 days of receiving an invoice from Landlord.

          8.3 In addition to Common Area Expenses, Landlord shall charge a
management fee of $.45 per square foot for the Leased Premises, not to include
the Reserved Space.

                                        5
<PAGE>
          8.4 If at any time during the term of this lease the method or scope
of taxation prevailing at the commencement of the lease term shall be altered,
such substituted tax or imposition shall be payable and discharged by the Tenant
in the manner required pursuant to the law which shall authorize such change.

          8.5 The Tenant covenants and agrees that it will, at its sole cost and
expense, carry liability insurance covering the Leased Premises in the minimum
amount of $1,000,000.00 per accident for 1 person, $3,000,000.00 per accident
for 2 or more persons, and a minimum amount of $300,000.00 for property damage.
The Tenant shall add the Landlord as a party insured on such policy and will
furnish Landlord with a certificate of said liability insurance prior to the
Commencement Date. The certificate shall contain a clause that the policy will
not be cancelled except on 10 days written notice to the Landlord.

          8.6 The parties covenant and agree that the insurance policies
required to be furnished in accordance with the terms and conditions of this
Lease, or in connection with insurance policies which they obtain insuring such
insurable interest as Landlord or Tenant may have in its own properties, whether
personal or real, shall expressly waive any right of subrogation on the part of
the insurer against the Landlord or Tenant. Landlord and Tenant each mutually
waive all right of recovery against each other, their agents, or employees for
any loss, damage or injury of any nature whatsoever to property or person for
which either party is required by this lease to carry insurance.

     9.   SIGNS

          At its sole expense the Tenant shall have the right to install at the
Leased Premises, at a location to be approved by the Landlord, only such signs
as are required by Tenant for the purpose of identifying the Tenant, which signs
are compatible with the design plan for the complex of buildings known as Cedar
Brook Corporate Center and are approved by the Landlord. The signs shall comply
with the rules and regulations of the applicable governmental boards and bureaus
having jurisdiction thereof. The installation of such signs shall not cause any
structural damage to the building and shall not be permitted on the roof.
Landlord shall not unreasonably withhold any approval of signs requested by
Tenant.

                                        6
<PAGE>
     10.  ASSIGNMENT AND SUBLETTING

          10.1 The Tenant may not assign or sublet the Leased Premises or any
part thereof, unless it shall first advise the Landlord in writing, by certified
mail, return receipt requested. In such event, the Landlord shall have 60 days
from receipt of such notice to elect to re-capture the Leased Premises and
terminate the Lease or to consent to the assignment of the Lease or the sublease
of the Leased Premises.

          10.2 If Landlord elects to recapture the Leased Premises, Tenant shall
surrender the Leased Premises no later than 90 days after Landlord's written
notice of its election to recapture.

          10.3 In connection with any permitted assignment or subletting, (i)
the Tenant shall pay monthly to the Landlord one-half of any increment in rent
received by Tenant per square foot over the rent then in effect during the year
of the assignment or subletting, which payment shall be made monthly together
with the required rent hereunder; and (ii) if Tenant receives any consideration
or value for such assignment or subletting, Landlord shall be paid one-half of
any such consideration or value within 10 days after receipt of the same by
Tenant. As a condition hereunder, Tenant warrants and represents to Landlord
that it will furnish to Landlord a copy of all pertinent documents with respect
to any such assignment or subletting so as to establish Tenant's obligation to
Landlord hereunder.

          10.4 In the event of any assignment or subletting permitted by the
Landlord, the Tenant shall remain and be directly and primarily responsible for
payment and performance of the within Lease obligations, and the Landlord
reserves the right, at all times, to require and demand that the Tenant pay and
perform the terms and conditions of this Lease. No such assignment or subletting
shall be made to any Tenant who shall occupy the Leased Premises for any use
other than that which is permitted to the Tenant, or for any use which may be
deemed disreputable or extra hazardous, or which would in any way violate
applicable laws, ordinances or rules and regulations of governmental boards and
bodies having jurisdiction.

     11.  FIRE AND CASUALTY

          11.1 In case of any damage to or destruction of any portion of the
building of which the Leased Premises is a part by fire or other casualty
occurring during the term of this lease (or previous thereto), which shall
render at least 1/3 of the floor area of the Leased Premises or the building
untenantable or unfit for occupancy, which damage cannot be repaired within 180
days from

                                        7
<PAGE>
the happening of such casualty, using reasonable diligence ("Total Destruction")
then the term hereby created shall, at the option of the Landlord, upon written
notice to the Tenant within 15 days of such fire or casualty, cease and become
null and void from the date of such Total Destruction. In such event the Tenant
shall immediately surrender the Leased Premises to the Landlord and this Lease
shall terminate. The Tenant shall only pay rent to the time of such Total
Destruction. However, in the event of Total Destruction if the Landlord shall
elect not to cancel this lease within the 15 day period the Landlord shall
repair and restore the same to substantially the same condition as it was prior
to the damage or destruction, with reasonable speed and dispatch. Tenant shall
not be responsible for the payment of rent while the repairs and restorations
are being made, but shall recommence immediately after the premises are restored
as evidenced by the issuance of a CO/CA by municipal authorities. In any case
where Landlord must restore, consideration shall be given for delays which would
justify non-performance under the Force Majeure paragraph in this Lease.

          11.2 In the event of any other casualty which shall not be tantamount
to Total Destruction the Landlord shall repair and restore the Building and the
Leased Premises to substantially the same condition as they were prior to the
damage or destruction, with reasonable speed and dispatch. The rent shall abate
or be equitably apportioned as to any portion of the Leased Premises which shall
be unfit for occupancy by the Tenant, or which cannot be used by the Tenant to
conduct its business. The rent shall recommence immediately upon restoration of
the Leased Premises as evidenced by the issuance of a CO/CA by municipal
authorities.

          11.3 In the event of any uninsured casualty, the Landlord may elect to
treat the casualty as though it had insurance or it may terminate the lease. If
it treats the casualty as though it had insurance then the provisions of this
paragraph shall apply. The Landlord shall serve a written notice upon the Tenant
within 15 days of the casualty specifying the election which it chooses to make.

          11.4 In the event the Landlord rebuilds, the Tenant agrees, at its
cost and expense, to forthwith remove any and all of its equipment, fixtures,
stock and personal property in order to permit Landlord to expedite the
construction. The Tenant shall assume at its sole risk the responsibility for
damage to or security of such fixtures and equipment in the event that any
portion of the building area has been damaged and is not secure.

                                        8
<PAGE>
     12.  COMPLIANCE WITH LAWS, RULES AND REGULATIONS

          12.1 (a) The Tenant agrees that upon acceptance and occupancy of the
Leased Premises, it will, at its own cost and expense, comply with all statutes,
ordinances, rules, orders, regulations and requirements of the Federal, State
and Municipal governments arising from the operations of Tenant at the Leased
Premises. The Tenant also agrees that it will not commit any nuisance, and will
dispose of all garbage and waste in connection with its operations so as to
avoid unreasonable emissions of dirt, fumes, odors or debris.

               (b) The Tenant agrees, at its own cost and expense, to comply
with such regulations or requests as may be required by the fire or liability
insurance carriers providing insurance for the Leased Premises, and the Board of
Fire Underwriters, in connection with Tenant's use and occupancy of the Leased
Premises.

          12.2 In case the Tenant shall fail to comply with all material
provisions of the aforesaid statutes, ordinances, rules, orders, regulations and
requirements then the Landlord may, after 10 days' notice (except for emergency
repairs, which may be made immediately), enter the Leased Premises and take any
reasonable actions to comply with them, at the cost and expense of the Tenant.
The cost thereof shall be added to the next month's rent and shall be due and
payable as such, or the Landlord may deduct the same from the balance of any sum
remaining in the Landlord's hands. This provision is in addition to the right of
the Landlord to terminate this Lease by reason of any default on the part of the
Tenant. However, in the event that all necessary repairs are made by Tenant,
the initial failure to comply with the aforesaid laws and regulations shall not
constitute an event of default.

          12.3 Tenant expressly covenants and agrees to indemnify, defend and
save the Landlord harmless against any claim, damage, liability, cost,
penalties, or fines which the Landlord may suffer as a result of air, ground or
water pollution caused by the Tenant in its use of the Leased Premises. The
Tenant covenants and agrees to notify the Landlord immediately of any claim or
notice served upon it with respect to any claim that the Tenant is causing air,
ground or water pollution; and the Tenant shall take immediate steps to halt,
remedy or cure any pollution of air, ground or water caused by the Tenant by its
use of the Leased premises. The indemnitor shall promptly assume full control of
the defense against any such claim, suit or demand with the assistance of
counsel reasonably satisfactory to the indemnitee, and the indemnitee shall
cooperate

                                        9
<PAGE>
with indemnitor and such counsel in the evaluation and defense thereof, provided
that the indemnitor shall reimburse the indemnitee for its out-of-pocket
expenses (including without limitation reasonable attorneys' fees and
disbursements) in connection therewith, which expenses shall not include the
time value of the indemnitee's employees or management. The indemnitee will not
make any admission of liability or responsibility, enter into any settlement,
take any other action or incur any expense (except reasonable attorneys' fees)
with respect to any such claim, suit or demand without the indemnitor's prior
written consent, which shall not be unreasonably withheld or delayed.

          12.4 Tenant expressly covenants and agrees to fully comply with the
provisions of the New Jersey Industrial Site Recovery Act (N.J.S.A. 13:lK-6, et
seq.) "ISRA", and its regulations, prior to the termination of the Lease or at
any time that any action of the Tenant triggers the applicability of ISRA. In
particular, the Tenant agrees that it shall comply with the provisions of ISRA
in the event of any "closing, terminating or transferring" of Tenant's
operations, as defined by and in accordance with the regulations. Tenant shall
file all initial applications for ISRA approval, and provide Landlord with
copies thereof, at least one year before the termination date. Tenant will also
diligently pursue its application and shall comply with all New Jersey
Department of Environmental Protection ("NJDEP") requests within the time frame
imposed by the NJDEP, but no later than 30 days after receiving the request. In
the event the Tenant pursues its obligation diligently, and is unable to provide
Landlord with evidence of compliance with ISRA, then it shall not be obligated
to pay any further rent following the termination date of the Lease. Evidence of
compliance, as used herein, shall mean a "letter of non-applicability" issued by
the New Jersey Department of Environmental Protection ("NJDEP"), an approved
"negative declaration" or a "remediation action plan" which has been fully
implemented and approved by NJDEP. Evidence of compliance shall be delivered to
the Landlord, together with copies of all submissions made to the NJDEP,
including all environmental reports, test results and other supporting
documentation. However, if Tenant is required by the NJDEP to clean-up any
hazardous substances at the property, and such clean-up extends beyond the
termination date, then Tenant shall be liable to continue paying rent and
additional rent to the Landlord until the clean-up has been fully implemented
and approved by NJDEP. Tenant shall be given credit for rent received if
Landlord is able to rent the Lease Premises, or any portion, while Tenant is
conducting any clean-up which extends beyond the termination date.

               In addition to the above, Tenant agrees that it shall cooperate
with Landlord in the event ISRA is applicable to any portion of the property of
which the Leased Premises are a

                                       10
<PAGE>
part. In such case, Tenant agrees that it shall fully cooperate with Landlord in
connection with any information or documentation which may be requested by the
NJDEP. In the event that any remediation of the Property is required in
connection with the conduct by Tenant of its business at the Leased Premises,
Tenant expressly covenants and agrees that it shall be responsible for that
portion of the remediation which is attributable to the Tenant's operation.
Tenant hereby represents and warrants that its Standard Industrial
Classification No. 2821, and that Tenant shall not generate, manufacture,
refine, transport, treat, store, handle or dispose of "hazardous substances" as
the same are defined under ISRA and the regulations promulgated pursuant
thereto, except in strict compliance with all governmental rules, regulations
and procedures. Tenant hereby agrees that it shall promptly inform Landlord of
any change in its SIC number and obtain Landlord's consent for any change in the
nature of the business to be conducted in the Leased Premises. The within
covenants shall survive the expiration or earlier termination of the lease term.

     13.  INSPECTION BY LANDLORD

          The Tenant agrees that the Landlord shall have the right to enter into
the Leased Premises at all reasonable hours for the purpose of examining the
same upon reasonable advance notice of not less than 24 hours (except in the
event of emergency), or to make such repairs as are necessary. Any repair shall
not unduly interfere with Tenant's use of the Leased Premises.

     14.  DEFAULT BY TENANT

          14.1 Each of the following shall be deemed a default by Tenant and a
breach of this lease:

          (a)  (1)  filing of a petition by the Tenant for adjudication as a
                    bankrupt, or for reorganization, or for an arrangement under
                    any federal or state statute, except in a Chapter 11
                    Bankruptcy where the rent and additional rent stipulated
                    herein is being paid and the terms of the lease are being
                    complied with;

               (2)  dissolution or liquidation of the Tenant;

               (3)  appointment of a permanent receiver or a permanent trustee
                    of all or substantially all of the property of the Tenant,
                    if such appointment shall not be vacated within 60 days,
                    provided the rent and additional rent stipulated herein is
                    being paid and the terms of the lease are being complied
                    with, during said 60 day period;

               (4)  taking possession of the property of the Tenant by a
                    governmental officer or agency pursuant to statutory
                    authority for dissolution, rehabilitation, reorganization or
                    liquidation of the Tenant if such taking of possession shall
                    not be vacated

                                       11
<PAGE>
                    within 60 days, provided the rent and additional rent
                    stipulated herein is being paid and the terms of the lease
                    are being complied with, during said 60 day period;

               (5)  making by the Tenant of an assignment for the benefit of
                    creditors;

               (6)  abandonment, desertion or vacation of the Leased Premises by
                    the Tenant;

          (b) Default in the payment of the rent or additional rent herein
reserved or any part thereof, which continues for 10 business days.

          (c) A default in the performance of any other covenant or condition of
this Lease on the part of the Tenant to be performed for a period of 10 days
after notice. However, no default on the part of Tenant shall be deemed to exist
if it diligently commences efforts to rectify same and Landlord is indemnified
against loss or liability arising from the default.

          14.2 In the event of any default set forth above, Landlord may serve
written notice upon the Tenant electing to terminate this lease upon a specified
date not less than 10 days after the date of serving such notice and this Lease
shall then expire on the date so specified as if that date had been originally
fixed as the expiration date of the term herein granted.

          14.3 In case this Lease shall be terminated Landlord or its agents
may, immediately or any time thereafter, re-enter and resume possession of the
Leased Premises or such part thereof, and remove all persons and property
therefrom, either by summary proceedings or by a suitable action or proceeding
at law, without being liable for any damages therefor. No re-entry by Landlord
shall be deemed an acceptance of a surrender of this lease. However, if the
Tenant is in default and moves out, or is dispossessed, and fails to remove any
property, machinery, equipment and fixtures or other property within 10 days
after such default, dispossession or removal, then and in that event, the said
property, machinery, equipment and fixtures or other property shall at the
option of the Landlord, be deemed to be abandoned, or the Landlord may remove
such property and charge the reasonable cost and expense of removal and storage
to the Tenant. The Tenant shall be liable for any damage which it causes in the
removal of said property from the Leased Premises.

          14.4 In case this Lease shall be terminated, Landlord shall make
reasonable efforts to relet the whole or any portion of the Leased Premises for
any period equal to or greater or less than the remainder of the then current
term, for any sum which it may deem reasonable, to any tenant which it may deem
suitable and satisfactory, and for any use and purpose which it may deem

                                       12
<PAGE>
appropriate. In connection with any such lease Landlord may make such changes in
the character of the improvements on the Leased Premises as Landlord may
determine to be appropriate or helpful in effecting such lease and may grant
reasonable concessions. Landlord shall not in any event be required to pay
Tenant any sums received by Landlord on a reletting of the Leased Premises.

          14.5 In the event this Lease is terminated and whether or not the
Leased Premises be relet, Landlord shall be entitled to recover from the Tenant
all rent due and all expenses, including reasonable counsel fees, incurred by
Landlord in recovering possession of the Leased Premises, and all reasonable
costs and charges for the care of the Leased Premises while vacant, which
damages shall be due at such time as they are incurred by Landlord; and a sum
equal to all damages set forth in this Paragraph 14 and in Paragraph 15. Without
any previous notice or demand, separate actions may be maintained by Landlord
against Tenant from time to time to recover any damages which have become due
and payable to the Landlord without waiting until the end of the term.

          14.6 In the event Landlord fails to perform any of its obligations set
forth in this Lease, then Tenant shall provide Landlord within 10 days notice of
such failure. If Landlord does not perform its obligations within the 10 day
period, or is not diligently pursuing such performance, then Tenant may cure
problem and submit an invoice to Landlord for the cost thereof.

     15.  LIABILITY OF TENANT FOR DEFICIENCY

          In the event that the relation of the Landlord and Tenant terminates
by reason of

               (a) a default by the Tenant and the re-entry of the Landlord as
permitted herein;

               (b) by the ejectment of the Tenant by summary proceedings or
other judicial proceedings;

               (c) after the abandonment of the Leased Premises by the Tenant,
it is hereby agreed that the Tenant shall remain liable to pay in monthly
payments the rent and any other charges which shall accrue. The Tenant expressly
agrees to pay as damages for such breach of this Lease the difference between
the rent reserved and the rent received, if any, by the Landlord, during the
remainder of the unexpired term.

                                       13
<PAGE>
     16.  NOTICES

          All notices required by this Lease shall be given by certified mail,
return receipt requested, overnight courier or personal delivery with receipt,
at the address set forth on the first page of this lease, and/or such other
place as the parties may designate in writing.

     17.  NON-WAIVER BY LANDLORD

          The failure of Landlord to insist upon the strict performance of any
of the terms of this Lease, or to exercise any option contained herein, shall
not be construed as a waiver of any such term. Acceptance by Landlord of
performance of anything required by this Lease to be performed, with the
knowledge of the breach of any term of this Lease, shall not be deemed a waiver
of such breach, nor shall acceptance of rent in a lesser amount than is due
(regardless of any endorsement on any check, or any statement in any letter
accompanying any payment of rent) be construed either as an accord and
satisfaction or in any manner other than as payment on account of the earliest
rent then unpaid by Tenant. No waiver by Landlord of any term of this Lease
shall be deemed to have been made unless expressed in writing and signed by
Landlord.

     18.  RIGHT OF TENANT TO MAKE ALTERATIONS AND IMPROVEMENTS

          The Tenant may not make alterations, additions or improvements to the
Leased Premises, or change the door locks or window coverings, or in any way
alter access to the Leased Premises without the consent of the Landlord, which
consent Landlord shall not unreasonably withhold. Tenant shall furnish to
Landlord as-built drawings of any alterations, additions or improvements which
are made, with an adjustment of rent applicable to any change in the character
of the space, such as from warehouse to office. Landlord agrees to review any
alteration, addition, or improvements proposed by Tenant within 10 days of
receipt of plans and specifications, and advise Tenant of its decision. Any
approval given is not intended to subject the Landlord's property to liability
under any lien law.

     19.  NON-LIABILITY OF LANDLORD

          Tenant agrees to assume all risk of damage to its property, equipment
and fixtures occurring in or about the Leased Premises, whatever the cause of
such damage or casualty. Landlord shall not be liable for any damage or injury
to property or person caused by or resulting from steam, electricity, gas,
water, rain, ice or snow, or any leak or flow from or into any part of the
building, or

                                       14
<PAGE>
from any damage or injury resulting or arising from any other cause or happening
whatsoever, unless arising from the negligence of Landlord, its agents, servants
or employees.

     20.  RESERVATION OF EASEMENT

          Landlord reserves the right, easement and privilege to enter on the
Leased Premises in order to install, at its own cost and expense, any storm
drains and sewers and/or utility lines in connection therewith as may be
required by the Landlord. It is understood and agreed that if such work as may
be required by Landlord requires an installation which may displace any paving,
lawn, seeded area or shrubs the Landlord, shall, at its own cost and expense,
restore or redesign said paving, lawn, seeded area or shrubs. The Landlord
covenants that the foregoing work shall not unreasonably interfere with the
normal operation of Tenant's business.

     21.  STATEMENT OF ACCEPTANCE

          Upon the delivery of the Leased Premises to the Tenant the Tenant
covenants and agrees that it will furnish to Landlord a statement which shall
set forth the Date of Commencement and the Date of Expiration of the lease term.

     22.  FORCE MAJEURE

          The period of time during which the Landlord or Tenant is prevented
from performing any act required to be performed under this Lease by reason of
fire, catastrophe, strikes, lockouts, civil commotion, acts of God, government
prohibitions or preemptions or embargoes, inability to obtain material or labor
by reason of governmental regulations, the act or default of the other party, or
other events beyond the reasonable control of Landlord or Tenant, as the case
may be, shall be added to the time for performance of such act. Notwithstanding
the above, Tenant's obligation to pay rent shall be excused if a force majeure
prevents it from occupying the demised premises for a period exceeding 30 days
and rent payment shall recommence at such time as the Tenant may once again
occupy the demised premises.

     23.  STATEMENTS BY LANDLORD AND TENANT

          Landlord and Tenant agree at any time and from time to time upon not
less than 10 days' prior notice from the other to execute, acknowledge and
deliver to the party requesting same, a statement in writing, certifying that
this lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and stating
the modifications), that it is not in default (or if claimed to be in default,
stating the amount and nature

                                       15
<PAGE>
of the default) and specifying the dates to which the basic rent and other
charges have been paid in advance.

     24.  CONDEMNATION

          24.1 If due to condemnation, (I) more than 15% of the Leased Premises
is taken or rendered untenantable, or (ii) more than 25% of the ground is taken
(including parking areas, but excluding front, side and rear set back areas)
and, in the opinion of both Landlord and Tenant, said taking unreasonably or
unduly interferes with the use of the Leased Premises, the lease term created
shall terminate from the date when the authority exercising the power of eminent
domain takes or interferes with the use of the Property. The Tenant shall be
responsible for the payment of rent until the time of surrender. In any event,
no part of the Landlord's condemnation award shall be claimed by the Tenant.
Without diminishing Landlord's award, the Tenant shall have the right to make a
claim against the condemning authority for such independent claim which it may
have.

          24.2 In the event of any partial taking which would not be cause for
termination of the Lease, or in the event of any partial taking in excess of the
percentages provided above and Tenant retains the balance of the Leased Premises
remaining after such taking, then the rent shall abate in an amount to be
mutually agreed upon between the Landlord and Tenant based on the relationship
that the character of the property prior to the taking bears to the property
which shall remain after the condemnation. The Landlord shall, to the extent
permitted by applicable law and as the same may be practicable promptly make
such repairs and alterations in order to restore the building and/or
improvements to usable condition to the extent of any condemnation award
received by Landlord.

     25.  LANDLORD'S REMEDIES

          25.1 The rights and remedies given to the Landlord in this lease are
distinct, separate and cumulative remedies, and no one of them, whether or not
exercised by the Landlord, shall be deemed to be in exclusion of any of the
others.

          25.2 In addition to any other legal remedies for violation or breach
of this lease by the Tenant or by anyone holding or claiming under the Tenant
such violation or breach shall be restrainable by injunction at the suit of the
Landlord.

          25.3 No receipt of money by the Landlord from any receiver, trustee or
custodian or debtors in possession shall reinstate, continue or extend the term
of this lease or affect any notice

                                       16
<PAGE>
theretofore given to the Tenant, or to any such receiver, trustee, custodian or
debtor in possession, or operate as a waiver or estoppel of the right of the
Landlord to recover possession of the Leased Premises for any of the causes
therein enumerated by any lawful remedy; and the failure of the Landlord to
enforce any covenant or condition by reason of its breach by the Tenant shall
not be deemed to void or affect the right of the Landlord to enforce the same
covenant or condition on the occasion of any subsequent default or breach.

     26.  QUIET ENJOYMENT

          The Landlord covenants that the Tenant, on paying the rental and
performing the covenants and conditions contained in this Lease, may peaceably
and quietly have, hold and enjoy the Leased Premises for the Lease term.

     27.  SURRENDER OF PREMISES

          On the last day, or earlier permitted termination of the Lease term,
Tenant shall quit and surrender the Leased Premises in good and orderly
condition and repair (reasonable wear and tear, and damage by fire or other
casualty excepted) and shall deliver and surrender the Leased Premises to the
Landlord peaceably, together with all alterations and improvements to the Leased
Premises. The Landlord reserves the right, however, to require the Tenant at
its cost and expense to remove any alterations or improvements installed by the
Tenant, and restore the Leased Premises to its original state, normal wear and
tear excepted. Prior to the expiration of the Lease term the Tenant shall remove
all of its property, fixtures, equipment and trade fixtures from the Leased
Premises. All property not removed by Tenant shall be deemed abandoned by
Tenant, and Landlord reserves the right to charge the reasonable cost of such
removal to the Tenant. If the Leased Premises are not surrendered at the end of
the Lease term, the Tenant shall be liable for double rent under NJSA 2A:42-6,
and Tenant shall indemnify Landlord against loss or liability resulting from
delay by Tenant in surrendering the Leased Premises, including, without
limitation any claims made by any succeeding tenant founded on the delay, and
any loss of income suffered by Landlord. These covenants shall survive the
termination of the Lease.

     28.  INDEMNITY

          Anything in this Lease to the contrary notwithstanding, and without
limiting the Tenant's obligation to provide insurance hereunder the Tenant
covenants and agrees that it will indemnify, defend and save harmless the
Landlord against and from all liabilities, obligations,

                                       17
<PAGE>
damages, penalties, claims, costs, charges and expenses, including without
limitation reasonable attorneys' fees, which may be imposed upon or incurred by
Landlord by reason of any of the following occurring during the term of this
Lease:

          (a) Any matter, cause or thing arising out of Tenant's use, occupancy,
control or management of the Leased Premises and any part thereof unless arising
from the negligence of Landlord, its agents, servants and employees;

          (b) Any negligence on the part of the Tenant or any of its agents,
contractors, servants, employees, licensees or invitees;

          (c) Any accident, injury, damage to any person or property occurring
in, or about the Leased Premises, unless arising from the negligence of
Landlord, its agents, servants and employees;

          (d) Any failure on the part of Tenant to perform or comply with any of
its covenants, agreements, terms or conditions contained in this Lease.

          Landlord shall promptly notify Tenant of any such claim asserted
against it and shall promptly send to Tenant copies of all papers or legal
process served upon it in connection with any action or proceeding brought
against Landlord.

     29.  LEASE CONSTRUCTION

          This Lease shall be construed pursuant to the laws of the State of New
Jersey.

     30.  BIND AND INURE CLAUSE

          The terms, covenants and conditions of this Lease shall be binding
upon, and inure to the benefit of, each of the parties hereto and their
respective heirs, successors and assigns.

     31.  INCLUSIONS

          The neuter gender when used herein, shall include all persons and
corporations, and words used in the singular shall include words in the plural
where the text of the instrument so requires.

     32.  DEFINITION OF TERM "LANDLORD"

          When the term "Landlord" is used in this Lease it shall be construed
to mean and include only the owner of title to the building. Upon the transfer
by the Landlord of the title, the Landlord shall advise the Tenant in writing by
certified mail, return receipt requested, of the name of the Landlord's
transferee. In such event, the Landlord shall be automatically freed and
relieved

                                       18
<PAGE>
from and after the date of such transfer of title of all personal liability with
respect to the performance of any of the covenants and obligations on the part
of the Landlord herein contained to be performed, provided any such transfer and
conveyance by the Landlord is expressly subject to the assumption by the
transferee of the obligations of the Landlord hereunder.

     33.  COVENANTS OF FURTHER ASSURANCES

          If, in connection with obtaining financing for the improvements on the
Leased Premises, the mortgage lender shall request reasonable modifications in
this lease as a condition to such financing, Tenant will not unreasonably
withhold, delay or refuse its consent thereto, provided that such modifications
do not in Tenant's reasonable judgment increase the obligations of Tenant
hereunder or materially adversely affect the leasehold interest hereby created
or Tenant's use and enjoyment of the Leased Premises.

     34.  COVENANT AGAINST LIENS

          Tenant agrees that it shall not encumber, or permit to be encumbered,
the Leased Premises or the fee thereof by any lien, charge or encumbrance, and
Tenant shall have no authority to mortgage or hypothecate this Lease in any way
whatsoever. Any violation of this Paragraph shall be considered a breach of this
Lease.

     35.  SUBORDINATION

          This Lease shall be subject and subordinate at all times to the lien
of any mortgages or ground leases or other encumbrances now or hereafter placed
on the land and building and Leased Premises without the necessity of any
further instrument or act on the part of Tenant to effectuate such
subordination. However, Tenant agrees to execute such further documents
evidencing the subordination of the Lease to the lien of any mortgage or ground
lease as shall be desired by Landlord. Tenant appoints Landlord the attorney in
fact of the Tenant irrevocably, to execute and deliver any such instrument or
instruments for and in the name of Tenant.

     36.  EXCULPATION OF LANDLORD

          The Landlord's principals shall have no personal obligation for
payment of any indebtedness or for the performance of any obligation under this
Lease. The performance of Landlord's obligations expressed herein may be
enforced only against the Landlord and the Leased Premises, the rents, issues
and profits thereof. The Tenant agrees that no deficiency judgment or

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<PAGE>
other judgment for money damages shall be entered by it against the Landlord's
principals personally in any action.

     37.  NET RENT

          It is the intent of the Landlord and Tenant that this Lease shall
yield, net to Landlord, the rent specified and all additional rent and charges
in each month during the term of the Lease, and that all costs, expenses and
obligations of every kind relating to the Lease Premises shall be paid by the
Tenant, unless expressly assumed by the Landlord.

     38.  SECURITY

          Upon execution of this Lease, the Tenant shall deposit with the
Landlord the sum of $24,700 as security for the full and faithful performance of
its obligations under this Lease. Upon termination of this Lease, and providing
the Tenant is not in default hereunder and has performed all of the conditions
of this Lease, the Landlord shall return the security deposit to the Tenant.
Tenant covenants and agrees that it will not assign, pledge, hypothecate,
mortgage or otherwise encumber the security during the term of this Lease. It is
expressly understood and agreed that the Landlord shall not be required to
segregate the security.

     39.  BROKERAGE

          The parties mutually represent to each other that no broker is
entitled to a commission and that neither party dealt with any broker in
connection with the within Lease. In the event either party violates this
representation, it shall indemnify and defend the other party harmless from all
claims and damages.

     40.  LATE CHARGES

          In addition to any other remedy, a late charge of 1-1/2% per month,
retroactive to the date rent was due, shall be due and payable, without notice
from Landlord, on any portion of rent or other charges not paid within 10 days
of the due date. However, if Tenant is late more than two times in any calendar
year, then the 10 day period is reduced to 5 days for the balance of the lease
term.

     41.  RESERVED SPACE

          In addition to the Leased Premises set forth in Paragraph 1, Landlord
shall reserve 3,000/sq. ft. of space contiguous to the Leased Premises
("Reserved Space"), as more particularly delineated on Schedule A. Tenant shall
pay rental of $6.00/sq. ft. for the Reserved Space inclusive

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of all charges set forth in Paragraph 8 hereof, except for utilities required to
serve the Reserved Space, which shall be Tenant's responsibility. While such
space is in a reserved status it shall not be included in determining Tenant's
Proportionate Share. Tenant shall have the option at any time during the
original Lease term to advise Landlord, in writing, that it desires Landlord to
finish the Reserved Space and include it as part of the Leased Premises. All
improvements to the Reserved Space shall be made within a timetable and a cost
schedule to be agreed between the parties.

     42.  OPTION TO RENEW

          Provided the Tenant is not in default hereunder, it has the right to
renew the lease, for a 5 year period, to commence at the end of the initial term
of this Lease. The renewal shall be upon the same terms and conditions as
contained in this Lease, except the Original Base Rent will increase by 15%. The
option of the Tenant to renew this Lease is expressly conditioned upon the
Tenant delivering to the Landlord a notice, in writing, by certified mail,
return receipt requested one year prior to the date fixed for termination of the
original Lease term.

          IN WITNESS WHEREOF, the parties hereto have executed this document on
the date first above written.

                                        Cedar Brook Corporate Center, L.P.

Date: 10/6/97                           By: /s/ Illegible
                                            ------------------------------------
                                                                        Landlord

                                        National Patent Development Corporation

Date:                                   By: /s/ Jerome I. Feldman
      --------------                        ------------------------------------

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