Document:

Unassociated Document

Exhibit
10.45

DOV
PHARMACEUTICAL, INC. 

AUDIT
COMMITTEE CHARTER

I.
General Statement of Purpose

The audit
committee is created and its members appointed by the board of directors to
assist in the oversight of the integrity of the company’s systems of internal
control,
financial statements and the qualifications, independence and performance of the
company’s independent auditors. To this end, the audit committee’s primary
function is to The
primary function of the audit committee is to assist the board of directors in
fulfilling its oversight responsibilities by reviewing the qualifications and
performance of the company’s independent accountants and the financial reports
and other financial information provided by the company to governmental bodies
or the public, and to review
and monitor the company’s system of internal controls and review
the
company’s auditing, accounting and financial reporting processes.   In
carrying out its primary function the audit committee shall also
provide
an open avenue of communication among the independent auditors, financial and
senior management and the board of directors. The audit committee shall fulfill
these responsibilities by carrying out the activities enumerated in section V of
this charter. 

II.
Composition

The audit
committee shall consist of at least three members of the board, each of whom
must be independent according to both NASD rules for
listed companies and the
Sarbanes-Oxley Act of 2002, or SOX,
and
moreover not own or control 20% or more of the company's voting securities, or
such lesser amount as may be established by the SEC. 

As an
exception to the above independence criteria, a director who is not an employee
or family member and meets all the above qualifications except those of the NASD
can be an audit committee member. For this to occur, the board, under
exceptional and limited circumstances, must determine that the director's
membership is required in the best interests of the company and its
stockholders. The company must then disclose, in the next following annual proxy
statement, its reasons for that determination. A member appointed and whose
appointment continues under this exception may not serve on the audit committee
for more than two years and may not chair the committee. 

Each
member of the audit committee must be able to understand financial
statements and at
least one member must be financially sophisticated as contemplated by NASD
rules.
Moreover, it is
contemplated but not required that at least
one member of the audit committee must
be
an “audit
committee "financial
expert”" under
SEC rules. Those rules require among other things that, in addition to
understanding financial statements, the financial expert have an understanding
of generally accepted accounting principles and their application as well as
experience with internal controls for financial reporting. 

Members
of the audit committee shall be appointed annually by the board and may be
replaced or removed by the board with or without cause. Resignation or removal
of a director, for whatever reason, shall if a member mean automatic resignation
or removal from the audit committee. Any vacancy on the audit committee may be
filled only by the board. The board shall designate one member of the audit
committee to be the chair. 

 

 

III.
Compensation

A member
may not, other than in his or her capacity as a member of the audit committee,
the board or any other board committee, receive any compensation from the
company. A member may receive additional director fees to compensate for the
significant time and effort required to serve on the audit committee.

IV.
Meetings

The audit
committee shall meet not less frequently than quarterly to review each quarterly
earnings release and quarterly report, and at least
on
one
further
occasions as
required to
review internal controls, audit progress and the annual report. Apart from these
required meetings, the committee may have additional meetings as often as it
determines. A majority of the members of the audit committee shall constitute a
quorum for purposes of holding a meeting and the committee may act by a vote of
a majority of the members present at the meeting. In lieu of a meeting, where
warranted in special circumstances the audit committee may act by unanimous
written consent. 

V.
Responsibilities and Authority

Matters
Relating to Selection, Performance and Independence of
Auditors

	·  	
      Sole
      authority to appoint (subject to stockholder ratification), terminate and
      determine funding
      compensation
      for
      auditors 

	·  	
      Instruct
      auditors to report directly to audit committee

	·  	
      Exercise
      oversight of auditors' work including resolution of disagreements between
      management and auditors 

	·  	
      Pre-approval
      of all audit, audit-related, tax and other services not prohibited by
      SOX,
      SEC
      or Public Company Accounting Oversight Board

	·  	
      Pre-approval
      of audit-related and non-audit services may be delegated to one or more
      members of audit committee,
      who shall promptly report such approved services at a full committee
      meeting  

	·  	
      Review
      and approve scope and staffing of auditors' overall audit plan
      

	·  	
      Require
      auditors to provide audit committee with written disclosures and letter
      required by Independence Standards Board Standard No. 1, and to
      submit to audit committee on a periodic basis a formal written statement
      delineating all relationships between auditors and company
  

 

 

-2-

 

	·  	
      Discuss
      with auditors any disclosed relationships or services that may impact
      objectivity and independence, and take appropriate action to satisfy audit
      committee of auditors' independence 

 

	·  	
      Discuss
      with company and auditors whether
      services of auditors
      required to be
      reported in annual report or proxy statement are compatible with
      maintaining auditors' independence 

 

Audited
Financial Statements

	·  	
      Review
      overall audit plan with auditors and management responsible for preparing
      company's financial statements 

	·  	
      Review
      and discuss with management and auditors as appropriate:
  

	·  	
      Company's
      annual audited financial statements including all critical accounting
      policies and practices used or to be used by company and any significant
      financial reporting issues that have arisen in connection with preparation
      of audited financial statements, prior to filing company's annual report
      

	·  	
      Any
      analysis prepared by management or auditors setting forth significant
      financial reporting issues and judgments made in connection with
      preparation of financial statements including analyses of effect of
      alternative GAAP methods on financial statements

	·  	
      Ramifications
      of use of such alternative disclosures and treatments on financial
      statements and treatment preferred by auditors, and consider other
      material written communications between auditors and management including
      any management letter or schedule of unadjusted differences
    

 

	·  	
      Major
      issues relating to adequacy
      of company's internal controls and procedures for financial reporting and
      risk management policies 

 

	·  	
      Major
      changes in and other issues regarding accounting and auditing principles
      and procedures including any significant changes in company's selection or
      application of accounting principles and

	·  	
      Effect
      on financial statements of regulatory and accounting initiatives as well
      as off-balance sheet transactions and structures

	·  	
      Review
      and discuss outside presence of management any audit problems or
      difficulties and management's response thereto including any difficulties
      encountered by auditors in the course of their work, including any
      restrictions on scope of their activities or access to information,
      responsibilities, budget and staffing of company's internal audit function
      if any or financial reporting function and any significant accounting
      issues raised with management 

 

 

-3-

 

 

	·  	
      Review
      and discuss matters brought to attention of audit committee by auditors
      pursuant to Statement on Auditing Standards No. 61 and No. 90
      (SAS
      61
      and SAS 90) including any 

	·  	
      Restriction
      on scope of auditors' activities or access to requested information
      

	·  	
      Accounting
      adjustments proposed by auditors but not made by management
    

	·  	
      Communication
      between auditors and its national office regarding significant auditing or
      accounting issues presented by management 

	·  	
      Management
      or internal control letter issued, or proposed to be issued, by auditors
      and 

	·  	
      Significant
      disagreement between company and auditors 

	·  	
      Review
      and discuss with auditors their report pursuant to Securities Exchange Act
      on their non-audit services if any 

 

	·  	
      If
      brought to audit committee's attention, discuss
      with CEO, CFO and general counsel (a)
      significant
      deficiencies and material weaknesses brought
      to audit committee's attention in
      design or operation of internal controls and procedures for financial
      reporting that could adversely affect company's ability to record,
      process, summarize and report financial information or (b)
      reveal
      any
      fraud involving management or other employees who have a significant role
      in company's internal controls and procedures for financial reporting
      

	·  	
      Based
      on its
      review of its
      (a)
      reports
      from independent auditors on company’s system of internal controls and its
      review of auditing, accounting and financial reporting process
      and
      (b)
      discussions
      with management including review of matters required to be discussed by
      SAS 61 and SAS 90, recommend to board whether company's audited financial
      statements should be included in 10-K 

 

	·  	
      Prepare
      audit committee report required by Item 306 of Regulation S-K to be
      included in company's annual proxy statement

 

-4-

 

Unaudited
Quarterly Financial Statements

	·  	
      Discuss
      with management and review any financial information including press
      releases and Form 10-Q submitted to a governmental body or the public
      including any certification, report, opinion or review by the independent
      auditors. 

Procedures
for Addressing Complaints and Concerns

	·  	
      Establish
      and require company to publish or file procedures for receipt, retention
      and treatment of complaints received by company regarding accounting,
      internal accounting controls or auditing matters and confidential,
      anonymous submission to audit committee by employees of concerns regarding
      questionable accounting or auditing matters or disclosure controls
      

Regular
Reports to Board

	·  	
      Regularly
      report to board
      on and
      review with board any issues that arise with respect to quality or
      integrity of company's financial statements, compliance with legal or
      regulatory requirements, performance and independence of auditors,
      performance of internal audit function if any and any other matters that
      audit committee considers appropriate or is requested by board to review
      

Review
of Charter

	·  	
      Review
      at least annually and more often as appropriate adequacy of charter and
      recommend amendments if any to board 

Engagement
of Advisors

	·  	
      Engage
      and determine compensation for independent counsel to audit committee and
      such other advisors necessary or appropriate to carry out its
      responsibilities and powers 

Legal
and Regulatory Compliance

	·  	
      Discuss
      with management legal and regulatory requirements applicable to company
      and its subsidiaries and company's compliance, and make recommendations to
      board regarding compliance 

	·  	
      Discuss
      with CEO, CFO and general counsel legal matters (including pending or
      threatened litigation) that may have a material effect on company's
      financial statements or its legal and regulatory compliance policies and
      procedures 

-5-

 

General

	·  	
      Form
      and delegate authority to subcommittees consisting of one or more of its
      members to carry out its responsibilities and exercise its powers
      

	·  	
      Require
      that any officer or employee of company, company's outside legal counsel,
      auditors or any other professional retained by company attend a meeting of
      audit committee or meet with any member of or advisor to committee
      

* *
*

Notwithstanding
the responsibilities and powers of the audit committee set forth in this
charter, it is not intended to carry responsibility for planning or conducting
audits of the company's financial statements or determining whether the
company's financial statements are complete, accurate and prepared in accordance
with GAAP. Such responsibilities are the duty of management and, to the extent
of their audit responsibilities, the auditors. In addition, it is not the duty
of the audit committee to conduct investigations or to assure compliance with
laws and regulations. The audit committee shall be entitled to rely upon advice
and information it receives if it believes to be reliable or has reason to draft
in its discussions and communications with management, auditors and such
experts, advisors and professionals it may consult. 

 

(Adopted
by the
board
of directors on
March
14,
2005,
further amending charter adopted March 21, 2003 
and amended March 11, 2004)

 

 

-6-Exhibit
10.56

 

FIFTH
AMENDMENT TO LEASE

 

THIS
FIFTH AMENDMENT (the
“Amendment”) made
as of November 15, 2004, by and between MSNW
CONTINENTAL ASSOCIATES, LLC, a
Delaware limited liability company, with an office at 67 Park Place East, 8th
Floor, Morristown, New Jersey 07960 (“Lessor”) as
successor-in-interest to Stellar Continental LLC, and DOV
PHARMACEUTICAL, INC., a
Delaware corporation, located at 433 Hackensack Avenue, Hackensack, New Jersey
07601 (“Lessee”).

 

W
I T N E S S E T H:

 

WHEREAS,
Lessor’s
predecessor-in-interest and Lessee entered into a lease dated May 24, 1999, as
modified by a First Amendment to Lease dated July 31, 2000 (the “First
Amendment”), a
Second Amendment to Lease dated July 30, 2002 (the “Second
Amendment”), a
Third Amendment to Lease dated February 12, 2003 (the “Third
Amendment”), and a
Fourth Amendment to Lease dated March 11, 2004 (the “Fourth
Amendment”, and
the lease, as amended by the First Amendment, the Second Amendment, the Third
Amendment and the Fourth Amendment is hereinafter referred to as, the
“Lease”)
whereby Lessee is currently in possession of 4,099 gross rentable square feet on
the twelfth (12th) floor,
and two separate premises on the lobby level, each containing approximately
7,185 gross rentable square feet of space and 4,420 rentable square feet of
space respectively (collectively, the “Existing
Premises”) in the
building known as 433 Hackensack Avenue, Hackensack, New Jersey (the
“Building”); and

 

WHEREAS,
Lessee
wishes to lease and hire from Lessor, additional space composed of two separate
premises on the sixth (6th) floor
each consisting of approximately 1,951 gross rentable square feet and 1,330
gross rentable square feet respectively (together, the “Additional
Space”), as
shown on Exhibit
A annexed
hereto and made a part hereof, and Lessor is willing to lease the Additional
Space to Lessee; and

 

WHEREAS, Lessor
and Lessee further wish to extend the term of the Lease and amend the Lease in
accordance with, and subject to, the provisions of this Amendment.

 

NOW,
THEREFORE, in
consideration of the sum of Ten ($10.00) Dollars and other good and valuable
consideration exchanged by Lessor and Lessee, the receipt and sufficiency of
which hereby expressly are acknowledged, it is AGREED:

 

1.     
For the
purposes of this Amendment, words and phrases used herein with initial capital
case letters and not otherwise defined in this Amendment shall have the
respective meanings ascribed to them in the Lease.

 

2.     
As of the
date hereof, the term “Electric
Rent Inclusion Factor” or
“ERIF” as
defined in Paragraph (8) of the Reference Page and as used throughout the Lease,
shall be known instead as “Lessee’s
Electric Charge”.

 

 

 

 

3.     
Lessor
and Lessee hereby extend the term of the Lease, subject to the provisions of
Paragraphs 7, 8 and 9 below, to and including June 30, 2008, and Paragraphs (15)
and (16) of the Reference Page are hereby amended accordingly.

 

4.    
From and
after the date hereof (the “Additional
Space Commencement Date”), with
respect to the Additional
Space
only:

 

	(a)  	
      the
      Annual Fixed Basic Rent shall be $88,587.00 (exclusive of Lessee’s
      Electric Charge for the Additional Space, as described herein), and the
      Monthly Fixed Basic Rent shall be $7,382.25 commencing on the Additional
      Space Commencement Date and ending upon June 26, 2005 (at which point the
      rent for the Additional Space will be subject to the terms of the
      paragraph 8 below);

	(b)  	
      Lessee’s
      Percentage shall be 0.56%;

	(c)  	
      the
      Base Operating Costs, Base Real Estate Taxes and Base Utility and Energy
      Costs shall be those Costs incurred during “Calendar Year
      2005”;

	(d)  	
      Lessee’s
      Electric Charge shall be $4,921.50 per annum ($410.13 per month) during
      the Term, subject to the terms of Section 24 of the Lease;
    and

	(e)  	
      Lessee
      shall be entitled to thirteen (13) non-reserved parking spaces of which
      four (4) shall be in the covered garage.

5.    
The
Additional Space is being leased in its "AS IS" condition as of the Additional
Space Commencement Date.

 

6.    
Following
the Additional Space Commencement Date, and in conformance with the Rules and
Regulations of the Building, (i) Lessor will provide appropriate directory
listings in the main lobby and sixth (6th) floor
of the Building, and (ii) Lessee may, at Lessee’s sole cost and expense, place
Lessee’s name and/or logo upon Lessee’s entry doors, with Lessor’s reasonable
approval, except
that Lessee need not obtain Lessor’s approval if Lessee’s name and/or logo is
substantially the same as that which currently exists on the entry doors of the
Existing Premises. 

 

7.     
Commencing
on June 26, 2005 Paragraph (7) of the Reference Page will be deemed deleted in
its entirety and replaced with the following:

	(1)  	
      Demised
      Premises: An
      aggregate of approximately 18,985 rentable square feet of space,
      consisting of approximately (i) two separate premises on the lobby level
      each respectively containing approximately (a) 7,185 gross rentable square
      feet of space, and (b) 4,420 rentable square feet of space, (ii) two
      separate premises on the sixth (6th)
      floor each respectively containing approximately (a) 1,951 gross rentable
      square feet of space, and (b) 1,330 gross rentable square feet of space,
      and (iii) 4,099 gross rentable square feet of space on the twelfth
      (12th)
      floor of the Building as shown on Exhibit
      A
      hereto, which includes an allocable share of the Common Facilities as
      defined in Subsection 43(C).

 

 

 

8.    
From and
after June 26, 2005, with respect to Annual Fixed Basic Rent for the Demised
Premises as defined in paragraph 7 above:

	(a)  	
      Lessee
      shall pay to Lessor Annual Fixed Basic Rent in the sum of $512,595.00
      (exclusive of Lessee’s Electric Charge for the Demised Premises, and the
      Monthly Fixed Basic Rent shall be $42,716.25) from June 27, 2005 through
      the last day of June 2006 (and a prorated portion thereof for any partial
      month);

	(b)  	
      Lessee
      shall pay to Lessor Annual Fixed Basic Rent in the sum of $522,087.50
      (exclusive of Lessee’s Electric Charge for the Demised Premises, and the
      Monthly Fixed Basic Rent shall be $43,507.29) from July 1, 2006 through
      the last day of June 2007;

	(c)  	
      Lessee
      shall pay to Lessor Annual Fixed Basic Rent in the sum of $531,580.00
      (exclusive of Lessee’s Electric Charge for the Demised Premises, and the
      Monthly Fixed Basic Rent shall be $44,298.33) from July 1, 2007 through
      the last day of June 2008;

	(d)  	
      Lessee’s
      Electric Charge shall be $28,477.50 per annum ($2,373.13 per month) during
      the Term, subject to the terms of Section 24 of the Lease; 

	(e)  	
      Lessee’s
      Percentage shall be 3.23%;
      and

	 	 

	(f)  	
      With
      regard ot the portion of the Demised Premises which constitutes the
      Additional Space as defined herein only, the Base Operating Costs, Base
      Real Estate Taxes and Base Utility and Energy Costs shall remain as those
      Costs incurred during “Calendar Year 2005”, as set forth in Paragraph 4(c)
      above.

9.    
Notwithstanding
anything in this Agreement or the Lease to the contrary, Lessee has the option
to terminate this Lease at any time on or after January 1, 2006 by giving Lessor
six (6) months prior written notice setting forth the effective date of
termination (the “Early
Termination Date”), which
Early Termination Date shall only occur on the last day of a calendar month, and
provided, in consideration of such termination, Lessee pays to Lessor a sum
equal to (a) the difference between (i) the Annual Fixed Basic Rent actually
paid by Lessee for the Demised Premises from and after July 1, 2005 through and
including the Early Termination Date, and (ii) a pro rated amount equal to $28
per square foot per year times the square footage of the Demised Premises for
the period from and after July 1, 2005 through and including the Early
Termination Date, plus (b) the difference between (i) the Annual Fixed Basic
Rent actually paid by Lessee for the Additional Space from and after the
Additional Space Commencement Date through and including the June 30, 2005, and
(ii) a pro rated amount equal to $28 per square foot per year times the square
footage of the Additional Space for the period from and after the Additional
Space Commencement Date through and including June 30, 2005.

 

 

 

 

10.  Section
45 of the Lease is herby deleted in its entirety and the following is
substituted therefor:

NOTICES. Any
notice by either party to the other shall be in writing and shall be deemed to
have been duly given only if (a) delivered personally or (b) sent by registered
mail or certified mail in a postpaid envelope or by regulated carrier service
with return receipt or (c) sent by nationally recognized overnight courier
service such as Federal Express, addressed if to Lessee, at the above-described
Building, with a copy to Greenbaum, Rowe, Smith, Ravin, Davis & Himmel LLP,
99 Wood Avenue South, Iselin, New Jersey 08830-2712, Attention: Martin E.
Dollinger, Esq.; if to Lessor, at Lessor's address as set forth above, with copy
to Meister Seelig & Fein LLP, Two Grand Central Tower, 140 East
45th Street,
19th Floor,
New York, New York 10017, Attention: Stephen B. Meister, Esq.; or to either at
such other address as Lessee or Lessor, respectively, may designate in writing.
Notice shall be deemed to have been duly given upon its receipt or rejection as
evidenced by a bill of lading or return receipt or upon delivery if personally
served.

11.  Lessor
and Lessee each represent and warrant to the other that Cushman & Wakefield
of New Jersey, Inc. (“Broker”) is the
sole broker with whom Lessor and Lessee have dealt with in bringing about this
Amendment. Lessee and Lessor each agrees to hold the other harmless and
indemnify and defend the other from and against any and all loss, cost,
liability, damage and expense arising out of the inaccuracy of the
representation contained in the preceding sentence and each party represents to
the other that it has not engaged and is not responsible for the payment of a
fee, commission or other compensation to any other person in connection with the
Lease or the Amendment. Lessor shall pay Broker any fees or commissions due
Broker as a result of this Amendment pursuant to the terms of a separate
agreement with Broker.

12.  Lessee
and Lessor each represents, warrants and covenants to the
other
that, to the best of its knowledge, the other is not in default of its
obligations under the Lease, and no event has occurred nor do any circumstances
exist which, with lapse of time or notice or both, to the
best of its knowledge, would
constitute a default by the
other under
the Lease as modified by this Amendment.

13.  Except as
modified by this Amendment, the Lease and all of the covenants, agreements,
terms, provisions and conditions thereof shall remain in full force and effect
and are hereby ratified and affirmed. The covenants, agreements, terms,
provisions and conditions contained in this Amendment shall bind the parties
hereto and their respective successor and assigns and shall inure to the benefit
of the parties hereto and their respective permitted successors and assigns. In
the event of any conflict between the provisions of this Amendment and the
Lease, the provisions contained in this Amendment shall prevail and be
paramount.

 

 

14.  The
submission of this Amendment for examination does not constitute a reservation
of, or option for, the Additional Space, and this Amendment becomes binding and
effective only upon execution and delivery of this Amendment by Lessor and
Lessee to the other and upon payment by Lessee to Lessor of the sum of
$7,382.25, which sum represents the first month’s rent for the Additional
Space.

 

[SIGNATURE
PAGE TO FOLLOW]

 

 

 

 

IN
WITNESS WHEREOF, Lessor
and Lessee have executed this Amendment the day and year first above
written.

 

	 	LESSEE: 
	 	 	 
	 	DOV PHARMACEUTICAL, INC.
	 
 	 
 	 
 
		By:  	 
	 	
      

      Name:  J. R. Horton
	 	Title:   Vice President and General
      Counsel

	 	LESSOR:
	 	 	 
	 	MSNW CONTINENTAL ASSOCIATES, LLC,
	 
 	 
 	 
 
		By:  	 
	 	
      

      Name:  Frank Mancini
	 	Title:   V.P.

 

 

 

 

EXHIBIT
A

[Depiction
of Demised Premises]

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