Document:

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                                                                   Exhibit 10.89

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                         AGREEMENT OF PURCHASE AND SALE

                                 BY AND BETWEEN

                   CORUM REALTY, LIMITED PARTNERSHIP, SELLER

                       IMCLONE SYSTEMS INCORPORATED, BUYER

                         Dated: as of December 17, 2001

Property:         1181 Route 202
                  Block 68.04, Lot 2.01
                  Branchburg, New Jersey

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<PAGE>
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
<S>                                                                         <C>

1.  Conveyance of Property ................................................   1
2.  Purchase Price ........................................................   2
3.  Seller's Covenants ....................................................   3
4.  Title to Real Estate ..................................................   3
5.  Due Diligence .........................................................   4
6.  Environmental Compliance ..............................................   3
7.  Closing of Title ......................................................   7
8   Leases and Sale of the Business .......................................   8
9.  Closing Documents .....................................................   9
10. Closing Adjustments and Costs .........................................  10
11. Seller's Representations and Warranties ...............................  10
12. Buyer's Representations ...............................................  12
13. Survival of Representations and Warranties ............................  12
14. Assessments ...........................................................  12
15. Risk of Loss ..........................................................  12
16. Condemnation ..........................................................  13
17. Brokers ...............................................................  13
18. Certificate of Occupancy and Zoning ...................................  13
19. Assignment ............................................................  14
20. Notices ...............................................................  14
21. Performance ...........................................................  14
22. Remedies ..............................................................  14
23. Governing Law .........................................................  14
24. Entire Agreement ......................................................  14
25. Recordation ...........................................................  15
26. Severability ..........................................................  15
27. Counterparts ..........................................................  15
28. Construction and Interpretation .......................................  15
29. Paragraph Headings ....................................................  15
</TABLE>

                                      -i-
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                               EXHIBITS

Exhibit A      -   Description of Property

Exhibit B      -   Pre Closing Lease

Exhibit C      -   Post Closing Lease

                                      -ii-
<PAGE>
                         AGREEMENT OF PURCHASE AND SALE

         THIS AGREEMENT OF PURCHASE AND SALE (the "Agreement") is dated as of
December---, 2001 by and between CORUM REALTY, LIMITED PARTNERSHIP, a New Jersey
limited partnership, having an address c/o Highland Packaging Labs, Inc., 1181
Route 202, Somerville, New Jersey 08876 (the "Seller") and IMCLONE SYSTEMS
INCORPORATED, a Delaware corporation, having an address at 180 Varick Street,
New York, New York 10014 (the "Buyer").

                                    RECITALS

         A.  The Seller is the record owner of the Property (as
hereinafter defined).

         B.  The Seller has agreed to sell, and the Buyer has agreed to
purchase, the Property, all on the terms and conditions herein contained.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants herein contained, the parties hereto agree as follows:

         1.  Conveyance of Property:

                  (a)  The Seller, for and in consideration of the Purchase
Price (as hereinafter defined) to be paid and satisfied as hereinafter provided,
and also in consideration of the mutual covenants and agreements of the parties
hereinafter contained, shall sell and convey to the Buyer, and the Buyer shall
purchase from the Seller, the Property, all in accordance with the terms of this
Agreement.

                  (b)  As used herein, the term "Property" means and
includes (i) that certain parcel of land located in the Township of Branchburg,
Somerset County, New Jersey known and designated as Block 68.04, Lot 2.01 and
commonly known as 1181 Route 202 (the "Land") as more particularly described in
Exhibit A attached hereto and made a part hereof; (ii) all buildings, structures
and other improvements located on the Land (collectively, the "Improvements");
(iii) the appliances, fixtures, machinery, equipment and other tangible personal
property owned by the Seller and located on the Land or the Improvements,
including the personal property listed on Exhibit B attached hereto and made a
part hereof (collectively, the "Personal Property") but excluding all inventory,
movable trade equipment and moveable trade fixtures except as included on
Exhibit B; (iv) to the extent assignable and to the extent the Buyer elects to
take an assignment thereof, all agreements, if any, that relate to the
ownership, maintenance and operation of the Property, including all amendments,
modifications, consents and supplements thereto (collectively, the "Service
Contracts"); (v) any and all (A) plans, models, drawings, specifications,
surveys, architectural, engineering, soils, seismic, geological, environmental,
marketing and demographic reports, studies and certificates, and other technical
descriptions in Seller's possession (collectively, the "Plans"), (B) third-party
warranties, guaranties and indemnities (collectively, the "Warranties"), and (C)
licenses, permits, governmental approvals, utility commitments, utility rights,
development
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rights or other similar rights (collectively, the "Licenses"); (vi) all right,
title and interest, if any, of the Seller in and to any land lying in the bed of
any street, road, highway or avenue, open or proposed, in front of or adjoining
all or any part of the Land and in all strips, gores or rights-of-way, riparian
rights and easements; and (vii) all other property, real, personal or mixed,
owned or held by the Seller (or its representatives) which relates, in any way,
to the design, construction, ownership, use, leasing, advertising, maintenance
or operation of the Land, Buildings, Improvements, Personal Property, Service
Contracts, Plans, Warranties and Licenses.

         2.  Purchase Price:

                  (a)  In consideration for the conveyance of the Property
as contemplated hereby, the Buyer shall pay to the Seller the sum of Seven
Million ($7,000,000) Dollars (the "Purchase Price"). The Purchase Price shall be
payable in the following manner:

<TABLE>
<S>                                                                <C>
                           (i)  Upon execution of this
                                Agreement for which this is a
                                receipt, via wire transfer
                                into the attorney trust
                                account of the escrow agent
                                designated in paragraph 2(b)
                                (the "Deposit")                  $  250,000.00

                           (ii)  Upon Closing of title as
                                 provided herein, the balance
                                 by certified check of the
                                 Buyer, bank treasurer's check
                                 or federal funds wire
                                 (subject to adjustment as
                                 hereinafter provided)
                                                                 $6,750,000.00
                                                                 -------------

                                    TOTAL                        $7,000,000.00
                                                                 =============
</TABLE>

                  (b)  The Seller's attorneys, Hoagland, Longo, Moran, Dunst
& Doukas, shall act as escrow agent, shall hold the Deposit in escrow in an
interest bearing account and shall apply same only in accordance with
subparagraph 2(c) hereof.

                  (c)  The Deposit, and interest earned thereon, shall be
applied as follows:

                           (i)  In the event title to the Property closes
hereunder, the Deposit shall be applied against the Purchase Price, and the
Deposit, together with all interest earned thereon, shall be released to the
Seller;

                           (ii)  In the event that either party shall
terminate this Agreement pursuant to its terms, the Deposit, together with all
interest earned thereon, shall be returned to the Buyer;

                           (iii) In the event that the Buyer shall fail to
close title to the Property when it shall be obligated to do so (after
satisfaction of all contingencies contained herein for the benefit of the Buyer,
and provided the Seller is not in default hereunder), the Deposit, and all

                                      -2-
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interest earned thereon, shall be paid to the Seller as part of the liquidated
damages to be paid to Seller as the Seller's sole and exclusive remedy pursuant
to subparagraph 22(a) hereof;

                           (iv)  In the event that the Seller shall fail to
close title to the Property when it shall be obligated to do so (after
satisfaction of all contingencies contained herein for the benefit of the
Seller, and provided the Buyer is not in default hereunder), the Deposit, and
all interest earned thereon, shall be returned to the Buyer, if so elected by
the Buyer pursuant to subparagraph 22(b) hereof.

         3.  Seller's Covenants: Between the date of the execution of this
Agreement and the Closing, Seller shall:

                  (a)  Maintain the Property in its present condition, ordinary
wear and tear excepted;

                  (b)  Maintain commercially reasonable limits of casualty,
liability and hazard insurance with respect to the Property;

                  (c)  Operate and manage the Property in the same manner done
by Seller prior to the date hereof; provided, however, that Seller shall not
enter into any leases or service contracts without Buyer's prior written
consent, which Buyer may withhold in its sole and absolute discretion;

                  (d)  Refrain from transferring or encumbering any part of the
Property or permitting any changes to the zoning classification thereof; and

                  (e)  Promptly after receipt furnish Buyer copies of all
notices of violation by Seller or the Buyer of federal, state or municipal laws,
ordinances, regulations, orders, or requirements of any governmental
authorities.

         4.  Title to Real Estate:

                  (a)  Title to the Property shall be conveyed by the Seller by
Bargain and Sale Deed with Covenant As To Grantor's Acts, free and clear of all
liens and encumbrances except for (i) municipal zoning ordinances and applicable
governmental regulations, provided none of the foregoing will render title
unmarketable or materially interfere with the Buyer's intended use of the
Property, and (ii) current taxes not then due and payable ((i) and (ii) being
collectively referred to as "Permitted Encumbrances"). The title to be conveyed
shall be good and marketable, and insurable at ordinary rates by a title
insurance company authorized to do business in New Jersey.

                  (b)  Seller has delivered to the Buyer a copy of the most
recent title report for the Property (the "Back Title"). The Buyer shall have
thirty (30) days from the date hereof within which to obtain a title commitment
and survey and to submit to the Seller a list of any objections to title (other
than Permitted Encumbrances, which the Buyer agrees to take title subject to)
(the "Title Objections"). If the Buyer does not submit Title Objections within
said 30-day period, it shall have

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been deemed to have accepted the state of the title to the Property and to have
waived any claims or defects which it might otherwise have raised. The Buyer
shall have the further right to order a run-down title examination prior to
Closing, at the Buyer's cost and expense, and to submit to the Seller any Title
Objections which may have arisen since the initial title examination.

                  (c)  Should the Buyer present Title Objections to the Seller
as aforesaid, the Seller shall have five (5) days within which to advise the
Buyer whether it will cure the Title Objections. If the Seller agrees to cure
the Title Objections, it must do so to the satisfaction of the Buyer's title
company at or prior to Closing. Notwithstanding the foregoing, the Seller shall
have the obligation to cure any Title Objection that can be cured or removed by
the payment of a liquidated sum of money. If the Seller advises the Buyer within
said 5-day period that the Seller is unable or unwilling to cure the Title
Objections, the Buyer may either (i) waive its Title Objections and proceed to
Closing without abatement of the Purchase Price, or (ii) terminate this
Agreement by notice to the Seller given not later than ten (10) days after
receipt by the Buyer of notice from the Seller that the Seller is unable or
unwilling to cure Title Objections. If the Seller does not respond to the Buyer
within said 5-day period, the Seller shall be deemed to have agreed to cure or
remove all such Title Objections.

                  (d)  In the event that this Agreement is terminated by reason
of the provisions contained in this Paragraph, the Buyer shall be entitled to
receive from the Seller the return of the Deposit (together with all interest
earned thereon) and reimbursement from the Seller of all actual costs and
expenses theretofore incurred by the Buyer in connection with procuring a title
report and survey.

         5.  Due Diligence:

                  (a)  The Buyer shall have the right, during the thirty 30-day
period commencing on the date hereof ("Due Diligence Period"), to conduct such
due diligence reviews, tests, inspections and investigations with respect to the
Property as the Buyer shall deem reasonably necessary in order to determine
whether the Property is suitable for purchase by the Buyer. Such due diligence
may include, without limitation, (A) a review of existing zoning and other
ordinances applicable to the Property, (B) a review of the physical condition of
the Improvements on the Property, including a structural inspection and an
inspection of the systems serving the Property, and (C) a review of the
environmental condition of the Property, including a Phase I environmental site
assessment, a Phase II environmental site investigation and any and all other
environmental tests and inspections deemed reasonably necessary or advisable.
Buyer may, by notice to Seller's attorney prior to the expiration of such 30-day
period, extend the Due Diligence Period for an additional ten (10) days if Buyer
shall not have received all written reports and studies commissioned by Buyer
during such 30-day period. Such extended Due Diligence Period shall be referred
to herein as the "Extended Diligence Period".

                  (b)  The Buyer may terminate this Agreement upon written
notice to the Seller prior to the expiration of the Due Diligence Period or the
Extended Diligence Period, as the case may be, if Buyer determines in its sole
and absolute discretion the Property is not suitable for Buyer's intended use,
or any condition exists which may materially interfere with Buyer's intended

                                      -4-
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use of the Property or any portion thereof. In such event, this Agreement shall
terminate, the Deposit, together with any interest earned thereon, shall be
returned to the Buyer and no party shall have any further rights or obligations
hereunder except as expressly stated herein to the contrary.

                  (c)  During the term of this Agreement, the Seller shall
provide the Buyer and Buyer's agents, professionals and contractors reasonable
access to the Property at reasonable hours.

                  (d)  Throughout the term of this Agreement, Seller shall
promptly make available to Buyer, its employees, agents, attorneys and other
professionals, for inspection, review and copying, all information and
documentation with respect to the Property in Seller's possession or control,
either actual or constructive, as Buyer shall reasonably request. Without
limiting the generality of the foregoing, Seller will deliver to Buyer
contemporaneously with the execution and delivery of this Agreement copies of
all agreements affecting the Property; all surveys, plans, and all engineering,
environmental reports, copies of all leases, service agreements, insurance
policies and copies of all permits. Seller represents that such materials and
documents previously delivered to Buyer, together with those materials and
documents which are being delivered to Buyer contemporaneously herewith, are all
of the materials, documents and information relating to the Property that Seller
has in its actual or constructive possession or control as of the date of this
Agreement. Seller shall have the continuing obligation during the term of this
Agreement to promptly deliver all such materials and documents as shall come
into Seller's possession from time to time, whether in response to a current or
previous request by Buyer, and as necessary to make Seller's foregoing
representation continue to be true and current until Closing.

                  (e)  The Buyer shall repair and restore any damage to the
Property resulting from the Buyer's entry onto the Property during the Due
Diligence Period pursuant to the provisions of this Paragraph.

         6.  Environmental Compliance:

                  (a)  The Seller acknowledges and agrees that the Seller shall
be responsible to take all necessary and required action in connection with,
arising from or relating to compliance with the provisions of any Environmental
Laws (as hereinafter defined) in connection with the sale and conveyance of the
Property to the Buyer. Without limiting the generality of the foregoing, the
Seller shall be responsible, at the Seller's cost, for complying with the
provisions of the Industrial Site Recovery Act, N.J.S.A. 13:1K-6 et seq., and
the regulations promulgated thereunder ("ISRA"). In that regard, the Seller
shall, prompt& after the date hereof, submit an Application/Affidavit to the New
Jersey Department of Environmental Protection ("NJDEP") requesting a letter of
nonapplicability from NJDEP (the "LNA") stating that the transaction
contemplated hereby is not subject to the provisions of ISRA. The Seller shall
deliver a copy of the LNA, together with a copy of the Application/Affidavit in
request therefor, to the Buyer at or prior to Closing.

                  (b)  In the event that the Seller is unable to obtain an LNA
because the Property and/or the transaction is subject to ISRA, the Seller shall
have the obligation to comply fully with the terms of ISRA (including without
limitation to perform any remediation or other work necessary) and to deliver to
the Buyer at or prior to Closing a "no further action" letter from

                                      -5-
<PAGE>
NJDEP. If Seller has not received a "no further action" letter from NJDEP
pursuant to this subparagraph by the Closing Date, and if Seller has completed
the remediation work described herein and shall have fulfilled all other
obligations and conditions precedent to Closing as set forth in this Agreement,
Seller may adjourn the Closing Date for sixty (60) days in order to obtain the
above-referenced "no further action" letter from NJDEP. Notwithstanding the
foregoing, if, in the Buyer's reasonable judgment, the Seller will be unable to
complete such remediation work by the Closing Date, the Buyer shall have the
right to terminate this Agreement upon written notice to the Seller.

                  (c)  The Seller hereby represents that it has caused three (3)
fuel oil underground storage tanks (the "USTs") located on the Property to be
removed in accordance with all applicable Environmental Laws, and a UST Closure
Report has been submitted to NJDEP, as more fully described in the "Phase I
Environmental Site Assessment conducted of Highland Packaging Labs, Inc. for
Corum Realty, L.P." dated October 30, 2001, prepared by TTI Environmental, Inc.
At Closing, Seller shall provide Buyer with a "no further action" letter with
respect to the removal of the USTs, provided, however, that if Seller has not
received a "no further action" letter from NJDEP pursuant to this subparagraph
by the Closing Date, and if Seller has fulfilled all other obligations and
conditions precedent to Closing as set forth in this Agreement, Seller may
adjourn the Closing Date for sixty (60) days in order to obtain the
above-referenced "no further action" letter from NJDEP. The sixty (60) day
adjournment set forth in subparagraph 6(b) and this subparagraph 6(c) shall run
concurrently, such that Seller shall be entitled to no more than sixty (60) days
of adjournment in the aggregate.

                  (d)  The Seller hereby agrees to and shall indemnify and hold
the Buyer harmless from and against any and all claims, liabilities, losses,
damages, and costs, including without limitation, reasonable counsel,
engineering and other professional or expert fees, which the Buyer may incur by
reason of (i) the Seller's compliance with, or failure to comply with, the
provisions of ISRA or any other Environmental Law or (ii) the environmental
condition of the Property, including without limitation the existence of any
hazardous substance or hazardous material (as defined in any Environmental Law)
at the Property, prior to the Closing Date.

                  (e)  As used herein, the term "Environmental Laws" means
federal, state and local laws, ordinances, rules, regulations, court orders and
common law related in any way to the protection of the environment, health or
safety, including without limitation, the Comprehensive Environmental Response,
Compensation and Liability Act, 42 U.S.C. (Section)9601 et seq.; the Resource
Conservation and Recovery Act, 42 U.S.C. (Section)6901 et seq.; the Industrial
Site Recovery Act, N.J.S.A. 13:lK-6 et seq.; the Spill Compensation and Control
Act, N.J.S.A. 58:10-23.11 et seq.; the Underground Storage of Hazardous
Substances Act, N.J.S.A. 58:l0A-21 et seq.; and the Solid Waste Management Act,
N.J.S.A. 13:lE-1 et seq.; and such laws, ordinances, rules, regulations, court
orders, judgments and common law which govern (A) the existence, cleanup and/or
remedy of contamination on the Property; (B) the protection of the environment
from spilled, deposited or otherwise emplaced contamination; (C) the control of
hazardous substances or hazardous wastes; or (D) the use, generation, transport,
treatment, removal, storage, discharge or recovery of hazardous substances or
hazardous wastes, including building materials.

                                      -6-
<PAGE>
                  (f)   The provisions of this Paragraph shall survive the
Closing.

         7.       Closing of Title:

                  (a)  The closing with respect to the transfer of title to
the Property the ("Closing" or "Closing Date") shall take place at the offices
of Wolff & Samson, P.A., 5 Becker Farm Road, Roseland, New Jersey, or at such
place as the Buyer and the Seller may agree, at 10:00 a.m. in accordance with
the following, as Buyer shall elect:

                  (i)  a mutually convenient date within fifteen (15) days after
the latest to occur of the expiration of the Due Diligence Period, the Extended
Diligence Period or the period under paragraph 4(b) for delivery of Title
Objections (but not earlier than January 2, 2002 without the Seller's consent,
which consent shall not be unreasonably withheld or delayed), or

                  (ii)  such earlier date (not prior to January 2, 2002 without
the Seller's consent, which consent shall not be unreasonably withheld or
delayed) as shall be set forth in a written notice from the Buyer to the Seller,
such earlier date to be no earlier than five (5) days after the date of such
written notice;

provided, however, that, notwithstanding the foregoing, the Buyer shall have no
obligation to close title, and the Closing Date shall not occur, unless and
until all conditions and contingencies set forth herein have been satisfied or
waived in writing by the Buyer.

                  (b)  On the Closing Date, Seller shall (i) deliver the
Property to Buyer (1) in broom-clean condition, (2) free of all debris and other
personal property not included in this sale other than Seller's personal
property, which is to remain during the term of the Post Closing Lease (as
defined below) and (3) in its current condition, ordinary wear and tear
excepted; provided, however, that at Closing all building systems shall be in
working order and the roof and foundation shall be free of leaks, and (ii)
deliver possession to the Property to Buyer, free and clear of all rights of
tenants, occupants and any other persons or entities, other than the rights of
Seller, as tenant under the Post Closing Lease.

                  (c)  Buyer's obligation to consummate the purchase of the
Property is subject to the satisfaction, as of the Closing Date of each and
every one of the following conditions precedent:

                   (i)  As of the date of this Agreement and the
Closing Date, each of Seller's representations and warranties contained herein
shall be true and correct in all material respects.

                   (ii) As of the Closing Date, Seller shall have
performed all of the obligations required to be performed by Seller under this
Agreement, and shall have delivered all documents and other items required to be
delivered by Seller under this Agreement.

                  (iii) As of the Closing Date, there shall exist no
pending or threatened action, suit or proceeding with respect to Seller or the
Property before or by any court,

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<PAGE>
administrative agency or other governmental entity which seeks to restrain or
prohibit, or to obtain damages or a discovery order with respect to, the
Property, this Agreement or the consummation of the sale and purchase of the
Property.

                           (iv)  As of the Closing Date, the Property (1)
shall in all respects be in the same condition as it is on the date hereof,
reasonable wear and tear excepted and (2) shall not be in violation of
applicable laws, ordinances, codes or regulations (including without limitation
any building, zoning, health or safety law, ordinance, code or regulation or any
Environmental Law).

                           (v)   As of the Closing Date, (1) Seller is ready,
willing and able to deliver the quality of title to the Property required by
this Agreement, and there shall not have arisen any new title matters which
Buyer deems to be title objections and (2) there shall have been no change to
the physical status of the Property from that shown on the survey (if any) of
the Property obtained by Buyer.

         8.       Leases and Sale of the Business:

                  (a)  Pre Closing Lease. Contemporaneously with the
execution and delivery of this Agreement, the Seller, as landlord, and the
Buyer, as tenant, are entering into a lease for a portion of the Property, which
lease (the "Pre Closing Lease") is in the form annexed hereto as Exhibit C. In
accordance with the Pre Closing Lease, the Buyer, as tenant, shall be entitled
to use the portion of the Property specified therein for the uses permitted
thereunder. The entering into of the Pre Closing Lease is a material inducement
to the Buyer entering into this Agreement.

                  (b)  Sale of the Business. The parties acknowledge that
Highland Packaging Labs, Inc. ("Highland") operates a packaging operation (the
"Business") at the Property. The Seller represents that Highland is under common
control with Seller and is wholly owned by Seller's general partners. Seller
further represents that Highland is currently marketing the Business for sale.
In connection with the sale of the Business as a going concern, Highland will
cause the buyer of the Business to remove all of Highland's inventory, trade
equipment, trade fixtures, furniture and furnishings from the Property and
Highland will thereupon surrender the Property in the condition required by, and
in accordance with the provisions of, the Post Closing Lease (as defined below).
If Highland shall not be successful in selling the Business as a going concern
by March 31, 2002, the Seller will cause its general partners to cause Highland
to arrange to sell by private sale and/or at auction all of Highland's
inventory, trade equipment, trade fixtures, furniture and furnishings, or
otherwise cause Highland to remove such items from the Property, and Highland
shall, in such event, surrender the Property in the condition required by the
Post Closing Lease by no later than April 30,2002.

                  (c)  Post Closing Lease. At the Closing, the Buyer, as
landlord, and Highland, as tenant, will enter into a lease for a portion of the
Property, which lease (the "Post Closing Lease") is in the form annexed hereto
as Exhibit D, and Highland will post a security deposit in the amount of
$400,000 to be held in accordance with the terms of the Post Closing Lease. In
accordance with the Post Closing Lease, Highland, as tenant, shall be entitled
to use the portion of the Property specified therein for the uses permitted
thereunder. The term of the

                                      -8-
<PAGE>
Post Closing Lease shall expire on April 30, 2002; provided, however, that the
term of the Post Closing Lease may be extended through June 30, 2002 in
accordance with the provisions of the Post Closing Lease if by March 3 1, 2002
Highland shall have given notice to the Buyer, as landlord, that Highland shall
have entered into a contract to sell the Business as a going concern and
Highland requires the extension of the Post Closing Lease to effectuate an
orderly transfer of the assets of Highland to the buyer of the Business. The
tenant's interest in the Post Closing Lease may be assigned by Highland to the
buyer of the Business at (but not prior to) the closing of the sale of the
Business; provided, that the Buyer shall have received no less than ten (10)
days prior notice of such assignment, and further provided, that Highland shall
not be relieved of any of its obligations under the Post Closing Lease and shall
remain fully liable thereunder. The agreement of the Buyer to enter into of the
Post Closing Lease with Highland is a material inducement to the Seller entering
into this Agreement.

         9.       Closing Documents:

                  (a)      At the Closing, the Seller will furnish the Buyer
with the following documents:

                           (i)      Bargain and Sale Deed with Covenant As To
Grantor's Acts.

                           (ii)     Affidavit of Title in standard form.

                           (iii)    General Assignment and Bill of Sale selling,
transferring, conveying and assigning to the Buyer all of the Seller's right,
title and interest in and to the personal property which is part of this sale,
together with all permits, approvals, warranties, guaranties and other
intangibles relating to or affecting the Property.

                           (iv)     A certificate, dated the Closing Date,
certifying that all of the representations and warranties of the Seller set
forth in the Agreement are true, correct and complete on and as of the Closing
Date as if made on the Closing Date.

                           (v)      A "non-foreign person" affidavit as required
by the Internal Revenue Code.

                           (vi)     A Form 1099 Information Statement as
required by the Internal Revenue Code.

                           (vii)    The most recent tax bills for the Property.

                           (viii)   Payoff letters or releases with respect to
any mortgages or liens encumbering the Property.

                           (ix)     A copy of any other documents required to
be delivered by the Seller under this Agreement if not theretofore delivered.

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<PAGE>
                           (x)  Any documents reasonably required by the Buyer's
title company in order to insure title.

                           (xi)  The LNA from NJDEP, or other evidence of
compliance with ISRA reasonably acceptable to the Buyer.

                           (xii)  The "no further action" letter from NJDEP with
respect to the removal of the underground storage tanks as required by
subparagraph 6(c) hereof.

                           (xiii)  Evidence of due organization, incumbency and
authority as the title company and Buyer's attorneys shall reasonably require.

                           (xiv)  The Post Closing Lease.

                  (b)  At the Closing, the Buyer shall furnish the Seller with
the following:

                           (i)  The balance of the Purchase Price as provided
herein.

                           (ii)  A copy of any other documents required to be
delivered by the Buyer hereunder if not theretofore delivered.

                           (iii)  The Post Closing Lease.

         10.  Closing Adjustments and Costs:

                  (a)  Real estate taxes, municipal water and sewer charges, if
any, fuel oil, if any, and any other matter normally adjusted shall be
apportioned and allowed as of the Closing Date.

                  (b)  All recording or filing fees with respect to the removal
of any liens or encumbrances on the Property, and all realty transfer fees,
shall be paid by the Seller. All recording fees for the deed and all title
insurance search fees and premiums shall be paid by the Buyer. Each party shall
pay the fees of its respective counsel.

         11.  Seller's Representations and Warranties: The Seller makes the
following representations and warranties to the Buyer. As a condition to the
Buyer's obligation to close title hereunder, all of the following
representations and warranties by the Seller shall be true, correct and complete
on and as of the Closing Date as if made on the Closing Date:

                  (a)  Seller is a New Jersey limited partnership, duly
organized and validly existing. H. Stuart and Mildred Campbell are the only
general partners in Seller. Seller has full power and authority to execute and
deliver this Agreement and to consummate the transactions contemplated hereby.

                                      -10-
<PAGE>
                  (b)      This Agreement has been duly executed and delivered
by Seller and is the legal, valid and binding obligation of Seller, enforceable
against Seller in accordance with its terms.

                  (c)      Seller is not in the hands of a receiver, and Seller
has not committed any act of bankruptcy or insolvency.

                  (d)      No special assessments have been levied or are
threatened or pending against all or any part of the Property.

                  (e)      Seller has no knowledge of any pending or threatened
condemnation or similar proceedings affecting all or any part of the Property.

                  (f)      There are no claims, causes of action, suits or other
litigation or proceeding of any nature pending or, to the Seller's knowledge,
threatened against Seller or the Property.

                  (g)      There are no leases, occupancy agreements or similar
agreements giving any person or entity any rights to use, occupy or operate on
the Property or any portion thereof or otherwise affecting or relating to the
Property other than the Pre Closing Lease.

                  (h)      Other than this Agreement, there are no options or
other written agreements with respect to the sale of all or any part of the
Property, and no person or entity has any option, right of first refusal or
right of first offer to purchase all or any part of the Property.

                  (i)      There are no service contracts, maintenance
contracts, management agreements or other contracts or agreements affecting or
relating to the Property.

                  (j)      Seller has not received any notice from any
governmental authority having jurisdiction over the Property advising that the
Property or any use or occupancy thereof is in violation of any applicable law,
ordinance or regulation, including without limitation any environmental law or
regulation or any zoning or other municipal ordinance.

                  (k)      Seller has no actual knowledge of any material latent
defects affecting the Property.

                  (l)      There are no underground storage tanks at or under
the Property, other than one (1) waste storage tank that was properly and
legally decommissioned by a predecessor in title to the Seller, which
decommissioned storage tank was filled with concrete by the Seller.

                  (m)      To the best of Seller's knowledge, there does not
exist on the Property any environmental condition or matter which would require
remediation or other corrective action pursuant to any Environmental Law.

                                      -11-
<PAGE>
                  (n)      Seller has not used, treated, stored or disposed of
any hazardous materials, hazardous substances, hazardous wastes or toxic
substances (as such terms are defined in any Environmental Law) at the Property
in violation of any Environmental Law and, to the best of Seller's knowledge, no
hazardous materials, hazardous substances, hazardous wastes or toxic substances
have been used, treated, stored or disposed of at the Property in violation of
any Environmental Law.

                  (o)      The copies of all documents and other information
relating to the Property which have been or will be provided by Seller to Buyer,
are in all material respects, true, correct and complete.

         12.      Buyer's Representations: The Buyer makes the following
representations and warranties to the Seller. As a condition to the Seller's
obligation to close title hereunder, all of the following representations and
warranties by the Buyer shall be true, correct and complete on and as of the
Closing Date as if made on the Closing Date:

                  (a)      The Buyer is a corporation duly formed, validly
existing and in good standing under the laws of the State of Delaware.

                  (b)      The execution and delivery of this Agreement and the
consummation of the transaction contemplated hereby have been duly authorized by
the Buyer, this Agreement has been duly executed and delivered by the Buyer and
this Agreement constitutes a valid and binding agreement of the Buyer,
enforceable in accordance with its terms.

         13.      Survival of Representations and Warranties: Except as
specifically provided for herein, the representations or warranties contained in
this Agreement, the Exhibits to this Agreement and in any statement, instrument
or certificate furnished pursuant to this Agreement shall survive the Closing
for a period of two (2) years.

         14.      Assessments: Assessments, if any, shall be paid and allowed by
the Seller on account of the Purchase Price, if the improvement or work has been
completed on or before the date of this Agreement. If the Property or any part
thereof is subject to an assessment or assessments which are payable in annual
installments, all unpaid installments of any such assessment which are to become
due and payable after the Closing shall be deemed to be liens on the Property
and shall be paid and discharged by the Seller at or prior to Closing.
Unconfirmed assessments, if any, shall be paid by the Seller at or prior to
Closing. Any assessments for work commenced after the Closing Date shall be the
sole responsibility of the Buyer. The Seller does not know of any confirmed or
unconfirmed assessments as of the date of this Agreement.

         15.      Risk of Loss:

                  (a)      The risk of loss or damage to the Property by fire or
other casualty until the Closing shall be the responsibility of the Seller. If
prior to the Closing Date all or any part of the Property is damaged or
destroyed in whole or in part by fire or other cause, the Buyer may, by written
notice given to the Seller not more than ten (10) days after notice of such
damage or

                                      -12-
<PAGE>
destruction is received by the Buyer, terminate this Agreement. In the event the
Buyer terminates this Agreement pursuant to this Paragraph, the Deposit,
together with all interest earned thereon, shall be returned to the Buyer, this
Agreement shall cease, terminate and come to an end, no party shall have any
rights or liabilities against or to the other except as expressly set forth to
the contrary herein.

                  (b)      In the event this Agreement has not been terminated
in accordance with the provisions of subparagraph (a) above, then the parties
shall proceed to the Closing and the Seller shall credit on account of the
Purchase Price an amount equal to the aggregate amount necessary to repair or
restore the Property, as mutually determined in good faith by the Seller and the
Buyer.

         16.      Condemnation:

                  (a)      The Seller shall give the Buyer prompt notice of any
actual or threatened taking or condemnation of all or any portion of the
Property. If, prior to the Closing, there shall occur a taking or condemnation
of all or any portion of the Property, or a deed has been given in lieu thereof,
or, if there is pending any proceeding in condemnation or eminent domain for the
taking or use of all or any substantial part of the Property, then, in such
event, the Buyer may, at its option, terminate this Agreement by written notice
given to the Seller within ten (10) days after the Buyer has received the notice
referred to above or at the Closing, whichever is earlier. In the event the
Buyer terminates this Agreement pursuant to this Paragraph, the Deposit,
together with all interest earned thereon, shall be returned to the Buyer, this
Agreement shall cease, terminate and come to an end, no party shall have any
rights or liabilities against or to the other except as expressly set forth to
the contrary herein.

                  (b)      In the event this Agreement has not been terminated
in accordance with the provisions of subparagraph (a) above, then the parties
shall proceed to the Closing and the Seller shall credit on account of the
Purchase Price an amount equal to the proceeds of any condemnation award
received or to be received by the Seller. This provision shall survive the
Closing.

         17.      Brokers: The parties hereby represent to each other that there
is no real estate agent, broker, finder or salesperson who participated in
bringing about this transaction; provided, however, the parties acknowledge that
Colliers Pinkard ("Colliers") contacted the parties during the course of
negotiations at the request of the Buyer in the capacity as a consultant to the
Buyer. The Buyer agrees to be solely responsible for the payment of any
consulting fee due to Colliers in connection with this transaction pursuant to a
separate written agreement. The parties agree to indemnify each other against
any claim by any other real estate agent, broker, or salesperson for commission
where such real estate agent, broker or salesperson claims a commission through
dealings with the indemnifying party. This provision shall survive the Closing.

         18.      Certificate of Occupancy and Zoning: The Seller shall, at the
Seller's cost and expense, obtain and deliver to the Buyer at or prior to
Closing a certificate of occupancy, zoning certificate or other zoning or
building code approval or permit required by the Township of Branchburg in
connection with the sale of the Property to the Buyer.

                                      -13-
<PAGE>
         19.      Assignment: This Agreement may be assigned by the Buyer,
without the consent of the Seller, to any entity which is owned or controlled by
or under common control with the Buyer. Except as set forth in the previous
sentence, this Agreement may not be assigned by the Buyer without the prior
written consent of the Seller, which consent may not be unreasonably withheld or
delayed. In connection with any assignment of this Agreement by the Buyer, the
Buyer shall not be relieved of any of its obligations hereunder and shall remain
fully liable hereunder.

         20.      Notices: All notices required to be given hereunder shall be
in writing and shall be deemed to have been given when sent by registered or
certified mail, postage prepaid, return receipt requested, or by overnight
delivery service or by telecopy, to the parties to whom the notice is addressed,
at the addresses stated above with a copy to the Seller's attorneys, Hoagland,
Longo, Moran, Dunst & Doukas, 40 Paterson Street, P.O. Box 480, New Brunswick,
New Jersey 08903, Attn: Gary Hoagland, Esq., and to the Buyer's attorneys, Wolff
& Samson, P.A., 5 Becker Farm Road, Roseland, New Jersey 07068, Attn: Jeffrey M.
Gussoff, Esq.

         21.      Performance: This Agreement shall be binding upon and shall
inure to the benefit of the parties hereto and their respective heirs,
successors and permitted assigns.

         22.      Remedies

                  (a)      If the Buyer shall fail to close title to the
Property when the Buyer shall be obligated to do so (after satisfaction of all
contingencies contained herein for the benefit of the Buyer, and provided the
Seller is not in default hereunder), then the Seller shall be entitled to be
paid $700,000 as liquidated damages ("Liquidated Damages") as the Seller's sole
and exclusive remedy. The Escrow Agent shall pay over to the Seller the Deposit
and all interest earned thereon, on account of the Liquidated Damages and the
Seller shall be entitled to pursue the Buyer for the balance of the Liquidated
Damages. The Buyer acknowledges that this provision concerning liquidated
damages is bona fide and does not constitute a penalty, it being acknowledged
that the Seller will have sustained damages which are not capable of
determination with mathematical precision.

                  (b)      If the Seller shall fail to close title to the
Property when it shall be obligated to do so pursuant to the provisions of this
Agreement (after satisfaction of all contingencies contained herein for the
benefit of the Seller, and provided the Buyer is not in default hereunder), then
the Buyer shall be entitled either (i) to terminate this Agreement, receive a
return of the Deposit (together with all interest earned thereon) and receive
reimbursement from the Seller for all actual costs and expenses theretofore
incurred by the Buyer in connection with procuring a title report and survey, or
(ii) to pursue any and all legal or equitable remedies it may have against the
Seller, including without limitation specific performance or money damages.

         23.      Governing Law: This Agreement shall be governed by and
construed in accordance with the laws of the State of New Jersey.

         24.      Entire Agreement: This Agreement and the exhibits annexed
hereto contain the entire agreement between the parties with respect to the
subject matter hereof. This Agreement

                                      -14-
<PAGE>
may not be changed orally and may be changed only by an agreement in writing
signed by all parties. There are no oral agreements between the Buyer and the
Seller affecting this Agreement and this Agreement supersedes, and cancels any
and all previous negotiations, arrangements, agreements and understandings, if
any, between the parties hereto with respect to the subject matter hereof and
none thereof shall be used to interpret or construe this Agreement. Further, it
is understood that the parties hereto have entered into this Agreement with
full knowledge of the subject matter hereof and this Agreement is not entered
into based upon any representations with respect to value.

         25.      Recordation: This Agreement shall not be recorded by the
Buyer. The filing or recordation of this Agreement in violation of this
provision shall be deemed a default of this Agreement. Nothing herein, however,
shall be deemed to prohibit the filing of a standard Notice of Settlement in
connection with this transaction.

         26.      Severability: In the event that any one or more of the
provisions of this Agreement shall be determined to be void or unenforceable by
a court of competent jurisdiction, or by law, such determination will not render
this Agreement invalid or unenforceable and the remaining provisions hereof
shall remain in full force and effect.

         27.      Counterparts: This Agreement may be signed in counterparts,
all of which when taken together shall constitute a single agreement.

         28.      Construction and Interpretation:

                  (a)      All references made and pronouns used in this
Agreement shall be construed in the singular or plural, and in such gender, as
the sense and circumstances require.

                  (b)      The Buyer and the Seller agree that each party and
its counsel have reviewed this Agreement and that the normal rule of
construction to the effect that any ambiguities are to be resolved against the
drafting party shall not be employed in the interpretation of this Agreement or
any amendments or exhibits thereto.

         29.      Paragraph Headings: Paragraph headings contained in this
Agreement are for convenience or reference only. They shall not be deemed to
modify, limit, define or describe in any respect the provisions of this
Agreement.

                                      -15-
<PAGE>
         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed as of the date set forth on the first page hereof.

                                           SELLER:

                                           CORUM REALTY, LIMITED
                                               PARTNERSHIP

                                           By: /s/ Mildred C. Campbell
                                              ----------------------------------
                                              Name: Mildred C. Campbell
                                              Title: General Partner

                                           By: /s/ H. Stuart Campbell
                                              ----------------------------------
                                              Name: H. Stuart Campbell
                                              Title: General Partner

                                           BUYER:

                                           IMCLONE SYSTEMS INCORPORATED

                                           By: /s/ John B. Landes
                                              ----------------------------------
                                              Name: John B. Landes
                                              Title: General Counsel

ESCROW AGENT:

Hoagland, Longo, Moran, Dunst & Doukas

By: /s/ Gary J. Hoagland
   -------------------------------------
   Gary J. Hoagland, Partner

                                      -16-
<PAGE>
                                    EXHIBIT A

                             Description of Property

All that certain Lot, piece or parcel of land, with the buildings and
improvements thereon erected, situate, lying and being in the Township of
Branchburg, County of Somerset, State of New Jersey, known and designated as Lot
2.01, Block 68.04, on the Tax Map of the Township of Branchburg, County of
Somerset, State of New Jersey:

BEGINNING at a point in the southerly sideline of U.S. Route 202, said point
being located along said southerly sideline a distance of 535.00 feet from the
intersection of said southerly sideline with the projected easterly sideline of
Chubb Way and from said point running; thence

(1)  Along said southerly sideline of Route 202, North 64 degrees 59 minutes
00 seconds East, a distance of 610.95 feet to a point; thence

(2)  South 25 degrees 01 minute 00 seconds East, a distance of 300.00 feet
to a point; thence

(3)  North 64 degrees 59 minutes 00 seconds East, a distance of 25.24 feet
to a point; thence

(4)  South 25 degrees 01 minute 00 seconds East, a distance of 215.50 feet
to a point; thence

(5)  Running a new line, South 64 degrees 59 minutes West, a distance of
636.19 feet to a point; thence

(6)  North 25 degrees 01 minutes 00 seconds West, a distance of 515.50 feet
to a point, said point being the point and place of BEGINNING.
<PAGE>
                                    EXHIBIT B

                  Personal Property/Equipment Included in Sale

1.       Boiler

<TABLE>
<CAPTION>
          SYMBOL     MANUFACTURER           MODEL           MBH           SIN
          ------     ------------           -----           ---           ---
<S>                  <C>                    <C>             <C>           <C>
          B-l        American Standard      78-807-4        1282          B-D
</TABLE>

2.       Main Electrical Switch Gear

         Electrical switch gear within the mechanical room includes the
         following:

                  1. 1200 AMP "HDP" main distribution panel 480/277 volt.

                  2. 100 AMP "D" 480/277-volt panel.

                  3. 100 AMP "C" 480/277-volt panel.

                  4. 15 KVA "Transformer" #1", Transformer 480 to 208/l20 volt.

                  5. 75 KVA "Transformer" #2, Transformer 480 to 208/l20 volt.

                  6. 250 AMP "B" panel, 120/208 volt.

                  7. 100 AMP "A" panel, 120/208 volt.

         The central offices have each have separate 45 KVA 480 volt to
         120/208-volt transformers.

3.       Fire Pump

         A portion of the warehouse is equipped with an Early Suppression Fast
         Response Sprinkler System with coverage of 130 S.F. per head. This
         Early Suppression Fast Response System utilizes a 1000 GPM, 60 PSI, 55
         BHP fire pump to increase the flow of water to the heads. The pump is
         located within the mechanical room.
<PAGE>
4.      Electric Hot Water Heater, 120 Gallons, in the warehouse/packaging.

5.      HVAC

<TABLE>
<CAPTION>
         SYMBO     MANUFACTURER       MODE         CFM      TONAG      HEATING
           L                            L                     E
         -----     ------------       ----         ---      -----      -------
<S>                <C>               <C>         <C>        <C>        <C>
         AC-1         TRANE          BU250       10,000      25        130MBH
         AC-2         TRANE           BU70        3,000       7        130MBH
         AC-3         TRANE           BU70        3,000       7        130MBH
         AC-4         TRANE           BU70        3,000       7        130MBH
</TABLE>

         Two (2) circulating pumps, installed for baseboard radiation and
         heating coils.

         The nine (9) packaging rooms utilize roof top packaged units.

         Gas-Fired modular tubular radiant heat system installed under the roof
         and along the perimeter of the building.

         Two (2) wall mounted exhaust fans, combined with two (2) motorized,
         operated outside, intake louvers installed on south side (fans) and
         north side (louvers) of the warehouse area for quick purging of air.
<PAGE>
                                    EXHIBIT C

                               Pre Closing Lease
<PAGE>
                                PRE CLOSING LEASE

                                     BETWEEN

                  CORUM REALTY, LIMITED PARTNERSHIP, LANDLORD,

                                       AND

                      IMCLONE SYSTEMS INCORPORATED, TENANT,

                            AS OF DECEMBER 17, 2001
<PAGE>
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
<S>                                                                         <C>
1.  THE LEASED PROPERTY ...................................................   1
2.  TERM ..................................................................   1
3.  USE OF THE LEASED PROPERTY ............................................   2
4.  RENT AND ADDITIONAL RENT ..............................................   2
5.  INSURANCE .............................................................   4
6.  UTILITIES .............................................................   6
7   DESTRUCTION ...........................................................   6
8.  COMPLIANCE WITH LAWS ..................................................   6
9.  ALTERATIONS AND REPAIRS ...............................................   6
10. SIGNS .................................................................   8
11. ACCESS TO THE PROPERTY ................................................   8
12. ASSIGNMENT AND SUBLETTING .............................................   9
13. CONDEMNATION ..........................................................   9
14. ENVIRONMENTAL COMPLIANCE ..............................................  10
15. SURRENDER BY TENANT AT END OF TERM ....................................  12
16. EVENT OF DEFAULT BY TENANT/OTHER TENANT DEFAULTS ......................  13
17. SUBORDINATION .........................................................  14
18. QUIET ENJOYMENT .......................................................  15
19. CERTIFICATES ..........................................................  15
20. NOTICES ...............................................................  16
21. INTERPRETATION ........................................................  16
22. BROKERAGE REPRESENTATION ..............................................  17
23. ENTIRE AGREEMENT/ NO WAIVER ...........................................  17
24. NEW JERSEY LAW ........................................................  19
25. CONSENTS ..............................................................  19
26. LIMITATION OF LIABILITY AND INDEMNIFICATION ...........................  19
27. AUTHORITY .............................................................  21
</TABLE>
<PAGE>
                                PRE CLOSING LEASE

         THIS PRE CLOSING LEASE (this "Lease"), made as of the day of December,
2001, by and between CORUM REALTY, LIMITED PARTNERSHIP a New Jersey limited
partnership, having an address c/o Highland Packaging Labs, Inc., 1181 Route
202, Somerville, New Jersey 08876 (the "Landlord"), and IMCLONE SYSTEMS
INCORPORATED, a Delaware corporation, having an address at 180 Varick Street,
New York, New York 10014 (the "Tenant").

                                   WITNESSETH:

         WHEREAS, Landlord and Tenant have entered into an Agreement of Purchase
and Sale of even date herewith (the "Agreement") whereby Landlord has agreed to
sell to Tenant the Property (as defined in the Agreement), including, without
limitation, the land and improvements commonly known as 1181 Route 202,
Branchburg, Somerset County, New Jersey;

         WHEREAS, pending the Closing under, or the termination of, the
Agreement, Landlord is hereby leasing to Tenant, and Tenant is hereby leasing
from Landlord, a portion of the Property more fully described or depicted on
Exhibit A hereto (the "Leased Property"), on the terms and conditions set forth
herein, and subject to the provisions of the Agreement;

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and commitments contained therein, the parties covenant and agree as
follows:

         1.       THE LEASED PROPERTY. Landlord, for and in consideration of the
covenants and agreements hereinafter mentioned, reserved and contained, to be
kept and performed by Tenant, does hereby demise and lease unto Tenant and
Tenant does hereby lease and hire from Landlord, the Leased Property, together
with access across, through and/or over portions of the Property as is and shall
be necessary or advisable to allow Tenant to access the Leased Property for the
purposes hereinafter provided. It is understood and agreed between the parties
hereto that the Tenant has thoroughly inspected the Leased Property demised
hereunder and, is thoroughly familiar with the condition of the Leased Property
demised hereunder and agree to accept the Leased Property in its "as is, where
is, with all faults" condition. Landlord makes no representations whatsoever
with respect to the condition of Leased Property demised hereunder, except as
specifically set forth in the Agreement.

         2.       TERM. Landlord leases unto Tenant and Tenant hires from
Landlord the Leased Property for the Term to commence on the Commencement Date,
and to end on the Expiration Date. The "Commencement Date" shall be the date
hereof. The "Expiration Date" shall be the earliest to occur of (a) the
thirtieth (30th) day following the termination of the Agreement in accordance
with its terms, (b) the date, if any, mutually agreed upon by the parties, (c)
the closing date under the Agreement and (d) any other termination of this Lease
in accordance with its terms.
<PAGE>
         3.       USE OF THE LEASED PROPERTY.

         3.1      Use of the Leased Property. Tenant covenants and agrees to use
the Leased Property only for the Permitted Use and at all times subject to the
Approvals (as hereinafter defined), if any. The term "Permitted Use" means
construction lay down, construction storage and parking of vehicles and
equipment in connection with Tenant's construction being conducted on Tenant's
property.

         3.2      Approvals. Tenant, at its cost and expense, shall duly procure
and thereafter maintain all Approvals, if any, which shall be required for the
proper and lawful conduct of the Permitted Use on the Leased Property or any
part thereof, and Tenant shall furnish a photostatic copy thereof to Landlord
upon Landlord's request therefor. The term "Approvals" means all governmental
requirements and conditions relating to the Permitted Use. Tenant shall at all
times comply with the terms and conditions of each such Approval. Landlord and
Tenant agree to reasonably cooperate with each other in the obtaining of the
necessary permits and approvals in connection with each other's operations.

         3.3      Reservation of Rights. Subject to the terms of the Agreement,
Landlord reserves the right at any time, without incurring any liability to
Tenant therefor, and without affecting or reducing any of Tenant's covenants and
obligations hereunder, to make such changes, alterations, additions and
improvements in or to the street entrances, parking lots, roadways and
driveways, as Landlord, in its sole and absolute discretion, shall deem
necessary or desirable to comply with the requirements of any federal, state or
local governmental agency, commission, board or political subdivision (each a
"Regulatory Authority"). Landlord reserves the right, and Tenant shall permit
Landlord, (i) to install, erect, use and maintain pipes, ducts and conduits in
and through the Leased Property and (ii) to make such repairs, changes,
alterations, additions and improvements in or to the Leased Property as Landlord
is required to make by Regulatory Authorities. Landlord shall be allowed to take
all materials into and upon the Leased Property that may be required in
connection therewith without any liability to Tenant and without the same
constituting an eviction of Tenant, in whole or in part, and without any
abatement or reduction in Rent payable hereunder or any reduction of Tenant's
covenants and obligations hereunder.

         4.       RENT AND ADDITIONAL RENT.

         4.1      Minimum Rent.

                                       2
<PAGE>
                  (a)      The term "Rent" means all amounts payable by Tenant
to Landlord hereunder, including minimum rent, if any, and Additional Rent (as
hereinafter defined).

                  (b)      If the Buyer under the Agreement purchases the
Property pursuant to the Agreement, no minimum rent shall be payable by Tenant
to Landlord in connection with this Lease.

                  (c)      If the Agreement shall be terminated as a result of a
default by Seller thereunder, no minimum rent shall be payable by Tenant to
Landlord from the Commencement Date through thirty (30) days following the date
of termination of the Agreement. Thereafter, Tenant shall pay Holdover Rent to
Landlord pursuant to Section 15.4 below.

                  (d)      If the Agreement shall be terminated by the Buyer
pursuant to Sections 4(d), 5(b) or 6(b) thereunder, Tenant shall pay minimum
rent to the Landlord in the amount of $6,500 per month, accrued retroactively
from the Commencement Date through thirty (30) days following the date of
termination of the Agreement. Thereafter, Tenant shall pay Holdover Rent to
Landlord pursuant to Section 15.4 below.

                  (e)      If the Agreement shall be terminated by the Seller
pursuant to Section 21(b) of the Agreement as a result of a default by Buyer
under the Agreement, Tenant shall pay minimum rent to the Landlord in the amount
of $6,500 per month, accrued retroactively from the Commencement Date through
thirty (30) days following the date of termination of the Agreement. Thereafter,
Tenant shall pay Holdover Rent to Landlord pursuant to Section 15.4 below.

         4.2      Additional Rent. Any and all charges other than the minimum
rent payable by Tenant under the various sections of this Lease, whether to
Landlord or directly to other persons shall be referred to herein as "Additional
Rent". Tenant shall provide Landlord with proof of payment thereof upon
Landlord's request. In the event of non-payment of any item of Additional Rent,
Landlord shall have all the rights and remedies with respect thereto as is
herein and at law provided for in case of non-payment of Rent.

         4.3      Operating Expenses. During the Term of this Lease, Tenant
shall timely pay all costs and expenses paid relating to or allocable to the
ownership, management, repair, maintenance, replacement, restoration or
operation of the Leased Property (collectively, "Operating Expenses"), if any.

         4.4      Taxes. Landlord shall pay all Taxes. The term "Taxes" means
the sum of the real- estate taxes and assessments, special assessments,
impositions, and other governmental charges of every kind and nature whatsoever,
extraordinary, as well as ordinary, unforeseen, as well as foreseen, and each
and every installment thereof, which during the Term shall be charged, laid,
levied, assessed, imposed, become due and payable, or liens upon the Property or
any part thereof, by any federal, state or local authorities having jurisdiction
thereto, and all taxes, assessments, imposition and charges levied or imposed in
place of or in addition to any of the

                                       3
<PAGE>
foregoing, together with all interest and penalties thereof, under or by virtue
of all present or future laws, ordinances, requirements, orders, directions,
rules or regulations of any Regulatory Authority. Taxes shall not include any
federal, state or municipal income tax, or any profit, inheritance, estate,
succession, gift, franchise or transfer tax imposed directly upon Landlord. The
term "Tax Year" means each 12 month period (deemed for the purposes of this
definition to have 365 days) established as the tax year by the taxing
authorities having lawful jurisdiction over the Property.

         4.5      Security Deposit. [Intentionally omitted from the Pre Closing
Lease.]

         5.       INSURANCE.

         5.1      Tenant's Insurance. Tenant shall maintain during the term of
this Lease the following coverages.

                  (a)      Physical Damage Insurance covering (i) all of
Tenant's property on the Leased Property, and (ii) any improvements, additions
and alterations made to the Leased Property by Tenant (collectively, "Tenant
Improvements").

                  (b)      Comprehensive General Liability Insurance including
Product/Completed Operations Liability, covering the insured against claims of
bodily injury, personal injury and property damage arising out of Tenant's
operations, assumed liabilities or use of the Leased Property, including a Broad
Form Comprehensive General Liability endorsement covering the insuring
provisions of this Lease and the performance by Tenant of the indemnity
agreements set forth in this Lease, for limits of liability not less than:

<TABLE>
<S>                                                           <C>
                           Bodily Injury and                  $1,000,000 each occurrence
                           Property Damage Liability          $1,000,000 annual aggregate

                           Personal Injury Liability          $1,000,000 each occurrence
                                                              $1,000,000 annual aggregate
                                                              0% Insured's participation
</TABLE>

                  (c)      Automobile Liability Insurance for all owned,
nonowned and hired vehicles, covering the insured against claims of bodily
injury and property damage with limits of liability not less than $1,000,000
each occurrence.

                  (d)      Workers Compensation and Employer's Liability
Insurance with limits of liability not less than:

<TABLE>
<S>                                                           <C>
                           Workers Compensation               Statutory Limits

                           Employer's Liability               $1,000,000/$1,000,000/$1,000,000
</TABLE>

                                       4
<PAGE>
                  (e)      Umbrella Liability Insurance covering the insured
against claims of bodily injury, personal injury and property damage with limits
of liability of not less than $4,000,000 in excess of the limits provided in
5.1(b) and 5.1(c).

                  (f)      Tenant shall carry and maintain during the entire
term of this Lease, at Tenant's sole cost and expense, increased amounts of the
insurance required to be carried by Tenant pursuant to this Article, and such
other reasonable types of insurance coverage and in such reasonable amounts, as
may be reasonably requested by Landlord.

         5.2      Compliance With Insurance Requirements. Tenant shall neither
use the Leased Property nor permit the Leased Property to be used or acts to be
done therein which will (a) increase the premium of any insurance described in
this Article; (b) cause a cancellation of or be in conflict with any such
insurance policies; (c) result in a refusal by insurance companies of good
standing to insure the Leased Property in amounts reasonably satisfactory to
Landlord; or (d) subject Landlord to any liability or responsibility for injury
to any person or property by reason of any operation being conducted in the
Leased Property. Tenant shall, at Tenant's expense, comply as to the Leased
Property with all insurance company requirements pertaining to the use of the
Leased Property. If Tenant's conduct or use of the Leased Property causes any
increase in the premium for such insurance policies, then Tenant shall reimburse
Landlord for any such increase. Tenant, at Tenant's expense, shall comply with
all rules, orders, regulations or requirements of the American Insurance
Association (formerly the National Board of Fire Underwriters) and with any
similar body.

         5.3      Waiver of Subrogation. Landlord and Tenant agree to have their
respective insurance companies issuing property damage insurance waive any
rights of subrogation that such companies may have against Landlord or Tenant.
As long as such waivers of subrogation are contained in their respective
insurance policies, Landlord and Tenant hereby waive any right that either may
have against the other on account of any loss or damage to their respective
property to the extent such loss or damage is insurable under policies of
insurance for fire and all risk coverage, theft, public liability, or other
similar insurance.

         5.4      Standards for Insurance. The minimum limits of policies of
insurance required of Tenant under this Lease shall in no event limit the
liability of Tenant under this Lease. Such insurance shall (i) name Landlord,
and any other party it so specifies, as additional insureds; (ii) specifically
cover the liability assumed by Tenant under this Lease; (iii) be issued by an
insurance company having a rating of not less than A-X in Best's Insurance Guide
or which is otherwise acceptable to Landlord and licensed to do business in the
State of New Jersey; (iv) be primary insurance as to all claims thereunder and
provide that any insurance carried by Landlord is excess and non-contributing
with any insurance requirement of Tenant; (v) provide that said insurance shall
not be canceled or coverage changed unless thirty (30) days' prior written
notice shall have been given to Landlord and any mortgagee of Landlord; and (vi)
contain a cross-liability endorsement or severability of interest clause
acceptable to Landlord. Tenant shall deliver duplicate copies of said policy or
policies or original certificates thereof to Landlord on or before the
Commencement Date and at least thirty (30) days before the expiration dates

                                       5
<PAGE>
thereof. In the event Tenant shall fail to procure such insurance, or to deliver
such policies or certificate, Landlord may, at its option, procure such policies
for the account of Tenant, and the cost thereof shall be paid to Landlord as
Additional Rent within five (5) days after delivery to Tenant of bills therefor.

         6.       UTILITIES. If Tenant shall require utility services, Tenant
shall, at its own cost and expense, arrange for or provide utility connections
and service to the Leased Property, and shall pay all utility meter, connection
and service charges, including those for gas, sewer, electricity, water and
standby sprinkler and any deposits required by utility suppliers. Landlord shall
not be required to furnish any utilities to Tenant.

         7.       DESTRUCTION. [Intentionally omitted from the Pre Closing
Lease.]

         8.       COMPLIANCE WITH LAWS. Tenant, at its expense, shall comply
with the Approvals and with all laws, orders, ordinances, regulations and
requirements of Regulatory Authorities and directions made pursuant to law by
any public officer or officers which, in respect of the Leased Property or the
use and occupancy thereof or the abatement of any nuisance in, on or about the
Leased Property, shall impose any violation, order or duty upon Landlord or
Tenant arising from (a) Tenant's occupancy, use or manner of use of the Leased
Property, (b) any installations, equipment or other property therein, (c) any
cause or condition created by or at the instance of Tenant, or (d) any breach of
any of Tenant's obligations hereunder. Tenant shall pay to Landlord, as
Additional Rent hereunder, promptly upon being billed therefor, amounts equal to
all costs, expenses, fines, penalties and damages which may be imposed upon or
incurred by Landlord by reason of or arising out of Tenant's failure to fully
and promptly comply with and observe the provisions of this Section. Tenant
shall give prompt notice to Landlord of any notice that Tenant may receive of
the violation of any law, ordinance, order, regulation, or requirement of any
public authority or direction of any public officer or official applicable to
the Leased Property.

         9.       ALTERATIONS AND REPAIRS.

         9.1      Tenant's Obligations to Repair and Maintain.

                  (a)      Tenant, at its sole cost and expense, throughout the
term of this Lease, shall keep and maintain in good working order and condition
the Leased Property, the Tenant Improvements, the equipment, fixtures and
appurtenances therein, and shall make all repairs and replacements, interior and
exterior, structural and non-structural, ordinary and extraordinary, in and to
the Leased Property as and when needed to keep and maintain them in good working
order and condition. In addition, Tenant shall be responsible, at its sole cost
and expense, for making all repairs, wherever on or with respect to the Leased
Property occurring, the need for which is caused by or arises out of (i) the
performance or existence of any Tenant's construction work or alterations, (ii)
the moving of any property of Tenant in or out of the Property, and (iii) the
acts, omission, neglect, improper conduct or other cause of Tenant or any of its
permitted sublessees, or its or their employees, agents, contractors, visitors,
licensees or invitees.

                                       6
<PAGE>
                  (b)      All repairs, maintenance and replacements which
Tenant is responsible for pursuant to this Section shall be performed in
accordance with the requirements of this Article. If Tenant fails to make any
repairs, restorations or replacements for which Tenant is responsible under this
Lease, Landlord, after notice to Tenant and reasonable opportunity to do so,
except in an emergency when no notice shall be required, may (but shall not be
obligated to) make same and Landlord's costs of doing so shall be collectible as
Additional Rent hereunder and shall be paid by Tenant to Landlord within five
(5) days after rendition of Landlord's bill or statement therefor.

         9.2      Limitation in Liability. Except as otherwise may be expressly
provided in this Lease, Landlord shall have no liability to Tenant, nor shall
Tenant's covenants and obligations under this Lease be reduced or abated in any
manner whatsoever by reason of any inconvenience, annoyance, interruption or
injury to business arising from Landlord's making any repairs or changes which
Landlord is required or permitted by this Lease, or required by law, to make in
or to any portion of the Property.

         9.3      Tenant Changes.

                  (a)      Tenant shall make no alterations, decorations,
installations, additions or improvements in or to the Leased Property ("Tenant
Changes") or perform any other work without Landlord's prior written consent,
which consent shall not be unreasonably withheld or delayed; provided, however,
that Tenant may perform such work as shall be necessary or advisable to prepare
the Leased Property for the Permitted Use, including but not limited to, the
eight foot high construction fence shown on Exhibit A. All Tenant Changes shall
be done at Tenant's sole cost and expense at such times and in such manner as
Landlord may from time to time designate and in full compliance with all laws,
rules and regulations of all Regulatory Authorities.

                  (b)      Prior to commencing any Tenant Changes or any other
work pursuant to the provisions of this Article, and as a condition to Landlord
granting its consent, Tenant shall furnish Landlord for its approval with (i)
copies of all governmental permits and authorizations which may be required in
connection with such work; (ii) a certificate evidencing that Tenant (or
Tenant's contractors) has (have) procured Workers Compensation insurance
covering all persons employed in connection with the work who might assert
claims for death or bodily injury against Landlord or Tenant; (iii) such
additional personal injury and property damage insurance (over and above the
insurance required to be carried by Tenant pursuant to the provisions of Article
6 hereof) as Landlord may reasonably require; (iv) to the extent permitted by
law, unconditional waivers of mechanic's liens signed by contractors,
subcontractors, materialmen and laborers to become involved in such work; and
(v) plans and specifications (including architectural, engineering, mechanical,
electrical and plumbing drawings, if applicable) for the work to be done and
copies of all contracts with contractors and subcontractors selected by Tenant.

                                       7
<PAGE>
         9.4      Mechanic's Lien.

                  (a)      Tenant will not do any act or suffer any act which
will, in any way, encumber the title of Landlord (or Tenant) in and to the
Leased Property nor will the interest or estate of Landlord or Tenant in the
Leased Property be in any way subject to any claim by way of lien or
encumbrance, whether by operation of law or by virtue of any express or implied
contract by Tenant. Tenant will not suffer or permit any liens to be filed
against the Leased Property, or any part thereof, by reason of any work, labor,
services or materials done for, or supplied, or claimed to have been done for,
or supplied to Tenant, or anyone holding the Leased Property, or any part
thereof, through or under Tenant. If any such lien is at any time filed against
the Leased Property, Tenant will cause the same to be discharged of record
within ten (10) days after the date of filing the same, by either payment,
deposit or bonding and if Tenant shall fail to do so, then, in addition to any
other right or remedy of Landlord, Landlord may, but shall not be obligated to,
procure the discharge of the same either by paying the amount claimed to be due
by deposit in court or bonding, and/or Landlord will be entitled, if Landlord so
elects, to compel the prosecution of an action for the foreclosure of such lien
by the lien or and to pay the amount of the judgment, if any, in favor of the
lienor with interest, costs and allowances. Any amount paid or deposited by
Landlord for any of the aforesaid purposes, and all legal and other expenses of
Landlord, including reasonable attorneys' fees, in defending such action or in
procuring the discharge of such lien, with all necessary disbursements in
connection therewith, will become due and payable as Additional Rent on the date
of payment or deposit as the case may be.

                  (b)      Nothing in this Lease shall be deemed to be, or
construed in any way as constituting, the consent or request of Landlord,
express or implied by inference or otherwise, to any person, firm or corporation
for the performance of any labor or the furnishing of any materials for any
construction, rebuilding, alteration or repair of or to the Leased Property or
any part thereof, nor as giving Tenant any right, power or authority to contract
for or permit the rendering of any services or the furnishing of any materials
which might in any way give rise to a right to file any lien against Landlord's
interest in the Leased Property.

         10.      SIGNS. Subject to Landlord's prior written consent, which
shall not be unreasonably withheld, delayed or conditioned, Tenant may erect and
maintain signs on the Leased Property as necessary or advisable for purposes of
safety and compliance with applicable laws; provided, however, that all signs
are consistent with the Approvals and comply with all laws, ordinances and
regulations of Regulatory Authorities.

         11.      ACCESS TO THE PROPERTY. Tenant shall permit Landlord or its
agents to enter the Leased Property, at reasonable times, for the purpose of
inspecting the Leased Property; provided, however, that Landlord shall be under
no obligation to so inspect. Landlord agrees not to interfere with Tenant's
business operations in exercising its rights hereunder and to give Tenant prior
notice of its exercise of such rights. Tenant is and shall be in exclusive
control and possession of the Leased Property as provided herein, and Landlord
shall not in any event whatsoever be liable for any injury or damage to any
Leased Property or to any person

                                       8
<PAGE>
happening on or about the Leased Property, nor for any injury or damage to the
Leased Property, nor to any property of Tenant, or of any other person located
on in the Leased Property. The provisions hereof permitting Landlord to enter
and inspect the Leased Property are made for the purpose of enabling Landlord to
be informed as to whether Tenant is complying with the agreements, terms,
covenants and conditions hereof and to do such acts as Tenant shall fail to do.

         12.      ASSIGNMENT AND SUBLETTING.

         12.1     Prohibited Transfers.

                  (a)      Tenant shall not, whether voluntarily or
involuntarily, by operation of law or otherwise, without Landlord's consent,
which Landlord may withhold in its sole and absolute discretion, (i) assign or
otherwise transfer this Lease or any interest therein or offer or advertise to
do so, (ii) sublet or suffer or permit the Leased Property or any part thereof
to be used, occupied or utilized by anyone other than Tenant or offer or
advertise to do so, or (iii) mortgage, pledge, encumber or otherwise hypothecate
(any of which shall be referred to as a "Mortgaging") this Lease or the Leased
Property or any part thereof in any manner whatsoever.

                  (b)      The consent by Landlord to any assignment, subletting
or mortgaging shall not in any manner be construed to relieve Tenant, or any
assignee or sublessee from obtaining Landlord's prior express written consent to
any other or further assignment, subletting, or Mortgaging. In no event shall
any permitted sublessee assign or encumber its sublease or further sublet all or
a portion of its sublet space, or otherwise suffer or permit the sub et space or
any part thereof to be used or occupied by others.

         12.2     Transfers of Interests in Entities. For purposes of this
Article, the transfer by any means of the legal or beneficial interests in
either voting power, capital or profits in Tenant or in any corporation,
partnership or other entity directly, or indirectly comprising Tenant, of the
majority of the issued and outstanding capital stock of any corporate Tenant or
subtenant, or the transfer of a majority of the beneficial interest in any other
entity (partnership or otherwise) which is the Tenant or a subtenant, however
accomplished, whether in a single transaction or in a series of related or
unrelated transactions, shall be deemed an assignment of this Lease or a
sublease, as the case may be. Tenant agrees to furnish Landlord with such
information as Landlord may reasonably request from time to time in order to
assure Landlord that neither Tenant nor any permitted subtenant have violated
the provisions of this Article. Notwithstanding the foregoing, the trading of
Tenant's shares on a public stock market shall not be a transfer or assignment
in violation of this Article.

         13.      CONDEMNATION. Each party shall give to the other prompt notice
of any actual or threatened taking or condemnation of all or any portion of any
of the Leased Property. If, during the Term of this Leased Lease, there shall
occur a taking or condemnation of all or any

                                       9
<PAGE>
substantial portion of the Property, or a deed has been given in lieu thereof,
or, if there is pending any proceeding in condemnation or eminent domain for the
taking or use of all or any substantial part of the Leased Property, then, in
such event, this Lease shall terminate, in which event neither party shall have
any further rights or obligations hereunder except as expressly set forth to the
contrary herein. If there is a condemnation or taking of any Leased Property
which is not deemed to be substantial, this Lease shall continue in effect. In
any event, all damages awarded for such taking under the power of eminent
domain, whether for the whole or a part of the Leased Property, shall belong to
and be the property of Landlord, whether such damages shall be awarded as
compensation for diminution in value to the leasehold or to the fee; provided,
however, that Tenant shall, to the extent that same shall not reduce Landlord's
award, be entitled to any award from the condemnor for loss of business and
depreciation to, and cost of removal of, stock and fixtures. The terms
"condemnation, " "taking" or similar terms as herein used shall mean the
acquisition by a public or quasi-public authority having the right to take the
same by condemnation or by power of eminent domain or otherwise, regardless of
whether such taking is the result of actual condemnation or of voluntary
conveyance.

         14.      ENVIRONMENTAL COMPLIANCE.

         14.1     Environmental Compliance.

                  (a)      Tenant, at its expense, shall comply with all
applicable Environmental Laws with respect to its use and occupancy of the
Leased Property; provided, however, that nothing herein contained shall be
construed as limiting or waiving any of Landlord's obligations as seller under
the Agreement.

                  (b)      No Hazardous Materials, shall be handled, upon,
about, above or beneath the Leased Property or any portion thereof by or on
behalf of Tenant, or its contractors, clients, officers, directors, employees,
agents, or invitees. Any such Hazardous Materials so Handled shall be known as
Tenant's Hazardous Materials. Notwithstanding the foregoing, normal quantities
of Tenant's Hazardous Materials customarily used in connection with the
Permitted Use may be Handled at the Leased Property. Tenant's Hazardous
Materials permitted by the foregoing sentence shall be Handled at all times in
compliance with the manufacturer's instructions therefor and all applicable
Environmental Laws. Tenant agrees to execute affidavits, representations, and
the like from time to time at Landlord's request stating Tenant's best knowledge
and belief regarding the presence of Hazardous Materials on the Leased Property.

                  (c)      Landlord and Tenant shall immediately notify the
other if it receives: (i) any notices or correspondence from the NJDEP (as
defined below) alleging the presence or release of any Hazardous Material in,
on, around or under the Leased Property; or (ii) any information suggesting or
demonstrating the release or presence of any Hazardous Material in, on, around
or under the Leased Property.

                                       10
<PAGE>
         14.2     ISRA.

                  (a)      Landlord and Tenant acknowledge that the Permitted
Use may cause the Leased Property to be subject to the provisions of the
Industrial Site Recovery Act, N.J.S.A. 13: 1K-6 et seq. and the regulations
promulgated thereunder and any successor legislation and regulations ("ISRA").
Except as set forth in the Agreement to be obligations of the Landlord, as
seller, Tenant shall, at Tenant's own expense, make all submissions to, provide
all information to, and comply with all requirements of, the Industrial Site
Evaluation Element (the "Element") of the New Jersey Department of Environmental
Protection ("NJDEP") in connection with any ISRA compliance required as a result
of Tenant's use of the Leased Property. Tenant shall provide copies to Landlord
of all materials submitted to and received from NJDEP pursuant to ISRA.

                  (b)      Tenant's obligations under this Article shall arise
if there is any "closing operations" or "transferring ownership or operations"
of an "industrial establishment" as defined by ISRA, at the Leased Property if
triggered by Tenant or by a "change in ownership" of Tenant as defined by ISRA;
provided however, that as a result of the closing under the Agreement Tenant
shall not be obligated to comply with ISRA separately from Landlord's pending
application, unless required to do so by NJDEP, but Tenant shall file a General
Information Notice (GIN) under the existing ISRA case number, if necessary.
Prior to the expiration or sooner termination of this Lease, Tenant shall
deliver to Landlord evidence of compliance with ISRA, or evidence that no
compliance with ISRA is required, in the form of (i) a non-applicability
determination, (ii) a de minimis quantity exemption as set forth in Section 9 of
ISRA, (iii) an approved "No Further Action Letter" as defined by ISRA and issued
by NJDEP, or (iv) a letter from NJDEP stating that an approved "Remedial Action
Workplan" (as described in (c) below) has been completed and the Leased Property
is in full compliance with ISRA.

                  (c)      Should NJDEP determine that a "Remedial Action
Workplan" as defined under ISRA, be prepared and/or that a "remediation", as
defined under ISRA, be undertaken because of any spills or discharges of
Hazardous Materials at the Leased Property which occur during the Term of this
Lease and which spills are caused by Tenant, its agents, employees or
independent contractors, then Tenant shall, at Tenant's own expense, prepare and
submit the required information and provide the necessary "funding source" if
required, as defined by ISRA, and carry out the approved remediation.

         14.3.    Indemnification. Tenant shall indemnify, defend and hold
harmless Landlord from and against any and all claims, actions, liabilities,
losses, penalties, damages, fines, costs and expenses (including, without
limitation, the reasonable fees and expenses of counsel, engineers, other
professionals or experts, including those to enforce this indemnity) of any kind
whatsoever, foreseen or unforeseen, which Landlord may incur by reason of
Tenant's failure to fulfill Tenant's obligations under this Article.

         14.4     Defined Terms. The following terms have the meanings ascribed
thereto:

                                       11
<PAGE>
                 Environmental Laws. All now and hereafter existing statutes,
laws, ordinances, codes, regulations, rules, rulings, orders, decrees,
directives, policies and requirements by any Regulatory Authority regulating,
relating to, or imposing liability or standards of conduct concerning public
health and safety or the environment, including, without limitation, the
Industrial Site Recovery Act (N.J.S.A. 13:1K-6 et seq.) ("ISRA"), the Spill
Compensation and Control Act (N.J.S.A. 58:10-23.11 et seq.) ("Spill Act"), the
Solid Waste Management Act (N.J.S.A. 13:1E-1 et seq.), the Resource and
Conservation Recovery Act (Section 6901 et seq.) ("RCRA"), the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. Section 9601
et seq.) ("CERCLA").

                  Handle. Any installation, handling, generation, storage,
treatment, use, disposal, discharge, release, manufacture, refinement, presence,
migration, emission, abatement, removal, transportation, or any other activity
of any type in connection with or involving Hazardous Substances. The term
defined shall also include other verb forms of the verb "to handle".

                  Hazardous Materials or Hazardous Substances. Any toxic
substances, hazardous wastes, or hazardous substances, as defined in or pursuant
to any Environmental Law.

         14.5     Survival. Tenant's obligations and liabilities under this
Article shall survive the expiration or earlier termination of this Lease.

         15.      SURRENDER BY TENANT AT END OF TERM.

         15.1     Termination.

                  (a)      This Lease may be terminated upon mutual agreement of
the parties.

                  (b)      This Lease shall terminate: (i) in the event that the
Agreement is terminated in accordance with its terms as a result of a material
breach by a party thereto, in which event the Expiration Date of this Lease
shall be the thirtieth (30th) day following the termination of the Agreement, or
(ii) in the event that this Lease is otherwise terminated in accordance with its
terms, in which event the Expiration Date shall be the date on which this Lease
is so terminated.

         15.2     Surrender by Tenant at End of Term. On the Expiration Date, or
the earlier termination hereof, unless resulting from the Closing under the
Agreement, Tenant shall peaceably and quietly surrender and deliver up to
Landlord possession of the Property, vacant and broom clean, in as good
condition and repair as at the Commencement Date, ordinary wear and tear and
damage by condemnation excepted. By the Expiration Date or earlier termination
hereof, Tenant shall remove from the Leased Property all personal property and
chattels of Tenant.

         15.3     Landlord's Right to Remove. If Tenant fails to remove Tenant's
personal property at such time as Landlord may be entitled to re-enter and take
possession of the Leased

                                       12
<PAGE>
Property pursuant to any provision of this Lease, Landlord may remove Tenant's
personal property from the Leased Property and to dispose of it or place it in a
reasonably safe place of storage, such moving, disposal and storage to be at the
sole cost and expense of Tenant. Tenant covenants and agrees to pay to Landlord
all reasonable expenses which Landlord incurs for such removal, demolition,
disposal and storage. Alternatively, at the option of Landlord, Tenant shall be
deemed to have abandoned any or all of Tenant's personal property and the same
may be disposed of or shall become the property of Landlord.

         15.4     Holdover Rent. If Tenant holds over or remains in possession
of the Leased Property after the expiration of the Term or after any earlier
termination of this Lease, such holding over or continued possession shall
create only a month to month tenancy. Tenant recognizes and agrees that (i) the
damage to Landlord resulting from any failure by Tenant to surrender the Leased
Property timely will be substantial, will exceed the amount of monthly Rent
theretofore payable hereunder, and will be impossible of accurate measurement,
and (ii) the minimum rent payable hereunder have been established in conjunction
with and as part of the transactions contemplated by the Agreement, and absent
the Agreement, Landlord would not have agreed to lease the Leased Property to
Tenant at the monthly Rent payable theretofore payable hereunder. Therefore,
Tenant shall pay rent for the period from the expiration or sooner termination
of the Term of this Lease through and including the date when Tenant shall
actually vacate and surrender the Leased Property in accordance with and as
required by the provisions of this Lease, equal to the aggregate of (a) monthly
rent at the rate of $13,000 per month ("Minimum Holdover Rent"), which the
parties acknowledge is reasonable and fair compensation for the use of the
Leased Property, and (b) Additional Rent specified in this Lease. The resulting
month to month tenancy may be terminated at any time by either party as of the
last day of any calendar month on not less than thirty (30) days' written notice
given to the other party.

         16.      EVENT OF DEFAULT BY TENANT/OTHER TENANT DEFAULTS.

         16.1     Events of Default. If during the Term there shall occur any of
the following events ("Events of Default"):

                  (a)      if Tenant shall fail to pay Additional Rent within
ten (10) days after written notice from Landlord; or

                  (b)      In the event that Tenant shall fail to observe any
other requirement, obligation, agreement, covenant or condition of this Lease,
other than the Events of Default expressly set forth in Section 17.1(a), and any
such failure shall continue for thirty (30) days after written notice from
Landlord specifying the basis for such default, or if such failure cannot
reasonably be remedied within such time period, if Tenant shall not diligently
commence to remedy such failure within such thirty (30) day time period and
thereafter prosecute the same to completion with diligence; or

                                       13
<PAGE>
                  (c)      if the Agreement shall be terminated as a result of a
default by Buyer thereunder ,then at any time following any of such Event of
Default, Landlord, may give Tenant notice of termination of this Lease and take
possession of the Property, using appropriate judicial process. The giving of
such notice to Tenant shall terminate Tenant's right to possession of the Leased
Property under this Lease without discharging Tenant from any of its liabilities
hereunder.

         16.2     Conditions Precedent. This Lease shall automatically terminate
without the requirement of any notice in the event that:

                  (a)      either party shall have become insolvent, or
generally does not pay its debts as they become due, or admits in writing its
inability to pay its debts, or makes a deed of trust or assignment for the
benefit of creditors; or

                  (b)      a petition in bankruptcy, insolvency, receivership,
dissolution or similar proceeding shall have been commenced voluntarily by a
party; or

                  (c)      any such proceeding shall have been commenced
involuntarily against a party and the same shall not have been dismissed or
effectively stayed within sixty days from the commencement thereof.

         16.3     Right of Re-Entry. If Landlord elects to terminate Tenant's
right to possession of the Leased Property under Section 16.1 following an Event
of Default or under Section 16.2, Landlord shall re-enter and take possession of
the Leased Property (using appropriate judicial process), and Tenant shall be
obligated to pay to Landlord upon demand, and Landlord shall be entitled to
recover of and from Tenant, (a) all Rent payable to the date of termination of
Tenant's right to possession, plus (b) the cost to Landlord of all reasonable
legal and other expenses and costs (including attorney's fees) incurred by
Landlord in obtaining possession of the Leased Property, plus (c) any reasonable
costs and expenses incurred in enforcing any provision of this Lease.

         17.      SUBORDINATION.

         17.1     Subordination. This Lease and all rights of Tenant hereunder
are subject and subordinate to all mortgages which may now or hereafter affect
the Property (any of the foregoing being herein referred to as a "Superior
Mortgage") whether or not such Superior Mortgages shall also cover other lands
and/or buildings and/or leases, to each and every advance made or hereafter to
be made under such Superior Mortgages, and to all renewals, modifications,
consolidations, replacements and extensions of such Superior Mortgages. This
Article shall be self-operative and no further instrument of subordination shall
be required. In confirmation of such subordination, Tenant shall promptly
execute, acknowledge and deliver any certificate that Landlord, the holder of
any Superior Mortgage, or any of their respective successors in interest may
reasonably request to evidence such subordination. If Tenant fails to execute,
acknowledge or deliver any such instruments within seven (7) days after request
therefor, Tenant hereby

                                       14
<PAGE>
irrevocably constitutes and appoints Landlord as Tenant's attorney-in-fact,
coupled with an interest, to execute any such certificate or certificates for
and on behalf of Tenant.

         17.2     Attornment. At the option of Landlord or any successor
landlord, including the holder of any Superior Mortgage or the purchaser of the
mortgaged premises in foreclosure who shall succeed to the Landlord's interest
herein (collectively the "Successor Landlord"), Tenant agrees that neither the
foreclosure of a Superior Mortgage, nor the institution of any suit, action,
summary or other proceeding against the Landlord or any Successor Landlord, nor
any foreclosure proceeding brought by the holder of any such Superior Mortgage
to recover possession of the premises covered thereby, shall by operation of the
law or otherwise result in cancellation or termination of this Lease or the
obligations of the Tenant hereunder, and at the option and upon the request of
any such Successor Landlord, Tenant covenants and agrees to attorn to and
recognize such Successor Landlord as Tenant's landlord under this Lease and
shall promptly execute and deliver any instrument that such Successor Landlord
may reasonably request to evidence such attornment. Upon such attornment, this
Lease shall continue in full force and effect as a direct Lease between the
Successor Landlord and Tenant upon all of the terms, conditions and covenants as
are set forth in this Lease except that the Successor Landlord shall not:

                  (a)      be liable for any previous act or omission of
Landlord under this Lease;

                  (b)      be subject to any offset not expressly provided for
in this Lease, which theretofore shall have accrued to Tenant against Landlord;
and

                  (c)      be bound by any previous modification of this Lease
or by any previous prepayment of more than one month's Rent, unless such
modification or prepayment shall have been expressly approved in writing by the
holder of the Superior Mortgagee, through or by reason of which the Successor
Landlord shall have succeeded to the rights of Landlord under this Lease.

         18.      QUIET ENJOYMENT. Landlord covenants that Tenant, on paying the
Rent and performing the covenants and conditions contained in this Lease, shall
and may peaceably and quietly have, hold and enjoy the Leased Property for the
Term of this Lease, subject to the terms and conditions of this Lease.

         19.      CERTIFICATES. Tenant and Landlord each agree at any time and
from time to time during the Term of this Lease, within 30 days after written
request from Landlord or Tenant, as applicable, to execute, acknowledge and
deliver to the other party or to such third person as requested by such other
party, 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), and the dates
to which the Additional Rent has been paid in advance, if any, and stating
whether or not, to the best of such certifying party's knowledge, the other
party is in default in the performance of any covenant, agreement or condition
contained in this Lease, and, if so, specifying each such default of which

                                       15
<PAGE>
such certifying party may have knowledge. Such third person shall have the right
to rely upon the contents of any such written statement of Tenant or Landlord.

         20.      NOTICES. Unless otherwise notified in writing to the contrary,
any notice, election or request required or permitted by the terms hereof to be
given by any party hereto shall be effectively delivered for all purposes if
personally delivered or sent by certified or registered mail, return receipt
requested, with first class postage prepaid, or by overnight delivery service
with proof of delivery, and if directed to Landlord, properly addressed to it at
the address for the Landlord set forth in the preamble of this Lease, with a
copy of such notice to the Landlord's attorneys, Hoagland, Longo, Moran, Dunst &
Doukas, 40 Paterson Street, P.O. Box 480, New Brunswick, New Jersey 08903, Attn:
Gary Hoagland, Esq., and if directed to Tenant, properly addressed to it at the
address for the Tenant set forth in the preamble of this Lease, with a copy of
such notice to the Tenant's attorneys, Wolff & Samson, P.A., 5 Becker Farm Road,
Roseland, New Jersey 07068, Attn: Jeffrey M. Gussoff, Esq. Every notice, demand,
request or other communication hereunder shall be deemed to have been given or
served (a) at the time that the same shall be deposited with the overnight
courier or deposited in the United States mails, postage prepaid, in the manner
aforesaid, or (b) when received if delivered personally or sent by facsimile
transmission.

         21.      INTERPRETATION. Unless otherwise specified, the rules of
construction set forth in this Article shall be applicable for all purposes of
this Lease and all documents or instruments supplemental hereto:

                  (a)      All references herein to numbered Articles, Sections,
Subsections, Schedules or Exhibits are references to the Articles, Sections and
Subsections hereof, and the Schedules and Exhibits attached hereto. The terms
"include, " "including" and similar terms shall be construed as if followed by
the phrase "without being limited to". Singular words include the plural and
plural words include the singular. The term "person" shall include natural
persons, firms, trusts, partnerships, corporations and any other public and
private legal entities. The term "provisions" when used with respect hereto or
to any other document or instrument, shall be construed as if preceded by the
phrase "terms, covenants, agreements, requirements, conditions and/or." The
terms "hereto," "herein, " "hereof," "hereunder" and similar terms shall refer
to this Lease in its entirety, unless the context clearly indicates
otherwise. Article, Section, Subsection, Schedule and Exhibit captions are used
for convenience and reference only and in no way define, limit or affect the
construction of the provisions hereof. No inference in favor of any party shall
be drawn from the fact that such party has drafted any portion hereof. All
recitals set forth in, and all schedules and exhibits to, this Lease are
incorporated by reference in this Lease. The terms "lease" or "sublease" shall
mean "lease, sublease, tenancy, subtenancy, letting, subletting, license or
sublicense" and the term "tenant" shall mean "subtenant, lessee, sublessee,
licensee, sublicensee or occupant." Words importing any gender or number shall
be deemed to refer to the masculine, feminine, neuter, singular or plural as the
identity of the person or item requires. The term "the date hereof' or like term
shall mean the date when a fully executed copy of this Lease has been delivered
to both Landlord and Tenant (or their counsel).

                                       16
<PAGE>
                  (b)      If any provision of this Lease is held to be illegal,
invalid or unenforceable, and if the rights or obligations of any party hereto
under this Lease will not be materially and adversely affected thereby, such
provision will be fully severable, this Lease will be construed and enforced as
if such an illegal, invalid or unenforceable provision had never comprised a
part hereof, and the remaining provisions of this Lease will remain in full
force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance.

                  (c)      All of the terms and provisions of this Lease shall
be deemed and construed to be "covenants" and "conditions" to be performed by
the respective parties as though words specifically expressing or importing
covenants and conditions were used in each separate term and provision hereof.

                  (d)      The parties hereto agree that they have mutually
prepared and reviewed this Lease and no rules of construction shall be adversely
applied against either as the preparer of this Lease.

                  (e)      This Lease may be executed simultaneously in a number
of counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         22.      BROKERAGE REPRESENTATION. Tenant and Landlord each represents
and warrants to the other that it knows of no person who is entitled to a
commission or sum in lieu thereof in connection with the execution of this Lease
or the creation of the tenancy effected by this Lease, and each agrees to save,
defend and indemnify the other from and against any claims, costs or damages
attributable to any misrepresentation or breach of warranty by the indemnitor
hereunder.

         23.      ENTIRE AGREEMENT/ NO WAIVER.

         23.1     Entire Agreement. This Lease, and the exhibits attached
hereto, constitute the entire agreement between the parties with respect to the
subject matter hereof, and supersede any and all prior communications or
writings with respect thereto and there are no oral or written understandings,
representations or commitments of any kind, express or implied, which are not
expressly set forth herein or in the Agreement.

         23.2     Modifications Must be in Writing. No oral or written
modification of this Lease by any officer, agent or employee of Tenant or
Landlord, either before or after execution of this Lease, shall be of any force
or effect unless such modification is in writing and signed by both parties.

         23.3     No Waiver of Future Violations. The waiver of any breach or
failure to enforce any of the terms, covenants or conditions of this Lease shall
not in any way (a) affect, limit, modify or waive the future enforcement of such
terms, covenants or conditions, or (b) constitute

                                       17
<PAGE>
a waiver of any breach or failure of any other terms, covenants or conditions,
any course of dealing or custom of the trade notwithstanding, or (c) prevent a
subsequent act, which would have originally constituted a breach or violation,
from having all the force and effect of an original breach or violation.

         23.4     No Waiver Upon Receipt of Rent. The receipt by Landlord of
Rent with knowledge of the breach of any covenant of this Lease shall not be
deemed a waiver of such breach. No payment by Tenant or receipt by Landlord of a
lesser amount than the monthly Rent herein stipulated shall be deemed to be
other than on account of the earliest stipulated Rent, nor shall any endorsement
or statement on any check or any letter accompanying any check or payment of
Rent be deemed an accord and satisfaction, and Landlord may accept and deposit
such check or payment without prejudice to Landlord's right to recover the
balance of such Rent or pursue any other remedy in this Lease provided.

         23.5     Force Majeure. If Landlord or Tenant shall be delayed,
hindered in or prevented from the performance of any acts required hereunder,
other than the payment of Rent, or timely surrender of the Leased Property by
Tenant, by reason of Force Majeure, then performance of such acts shall be
excused for the period of the delay and the period for the performance of any
such act shall be extended for a period equal to the period of such delay. The
term "Force Majeure" means any cause beyond a party's reasonable control,
including Acts of God, strikes, blackouts, failure of power, labor troubles,
shortage of materials or services, governmental preemption in connection with a
national or local emergency, riots, insurrection, the act or failure to act of
the other party, or by reason of any rule, order or regulation of any
governmental agency or by reason of the conditions of supply and demand which
have been or are affected by war, hostilities or similar emergency.

         23.6     Further Assurances. From time to time, at the Landlord's or
the Tenant's reasonable request and without further consideration, the Tenant or
the Landlord, as the case may be, shall execute and deliver such other
instruments and take such other actions as the Landlord or the Tenant may
request in order to more effectively convey, lease to, invest in the Tenant and
to put the Tenant in possession and operating control of all or any part of the
Leased Property, and to otherwise consummate the transactions contemplated
hereby.

         23.7     Binding Effect. This Lease shall bind and inure to the benefit
of and be enforceable by the parties hereto, and their respective successors and
assigns.

         23.8     No Third Party Rights. This Lease shall not be construed to
create any rights under this Lease in any third party, whether as a third party
beneficiary or otherwise. Nothing contained herein may be relied upon or
enforced by any person or entity other than the Landlord and the Tenant.

         23.9     No Recording. None of the parties hereto shall have any right
to record or file this Lease or any memorandum or other document relating to
this Lease prior to the Closing, except for a Notice of Settlement.

                                       18
<PAGE>
         24.      NEW JERSEY LAW. This Lease shall be governed by and construed
in accordance with the laws of the State of New Jersey. Landlord and Tenant
hereby mutually waive their rights to trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the other on any
matters whatsoever arising out of or in any way connected with this Lease,
Tenant's use or occupancy of the Lease Property, and any claim of injury or
damage. Tenant hereby waives, to the fullest extent permitted by law, the right
to interpose any counterclaim (other than compulsory counterclaims) in any
summary proceeding instituted by Landlord against Tenant or in any action
instituted by Landlord for unpaid Rent under this Lease.

         25.      CONSENTS. In the event the Tenant claims or asserts that the
Landlord has violated or failed to perform a covenant of Landlord not to
unreasonably withhold or delay Landlord's consent or approval, or in any case
where Landlord's reasonableness in exercising its judgment is in issue, Tenant's
sole remedy shall be an action for specific performance, declaratory judgment or
injunction and in no event shall Tenant be entitled to any money damages for a
breach of such covenant and in no event shall Tenant claim or assert any claims
for money damages in any action or by way of set-off, defense or counterclaim
and Tenant hereby specifically waives the right to any money damages or other
remedies. Whenever Landlord's consent or approval is required under this Lease,
and this Lease does not specify that such consent or approval shall not be
unreasonably withheld or delayed, Landlord may determine whether to grant or
withhold such consent or approval in its sole and absolute discretion,
regardless of whether such refusal to consent or approve may be deemed
arbitrary. Whenever this Lease requires Landlord's consent or approval, Tenant
shall reimburse Landlord on demand as a condition to granting such consent or
approval any costs that may be incurred in connection with reviewing the request
for consent or approval, including, without limitation, reasonable attorneys'
fees.

         26.      LIMITATION OF LIABILITY AND INDEMNIFICATION.

         26.1     Limitation on Liability. Landlord shall not be liable to
Tenant for (a) any loss, injury or damage to property of Tenant or for any loss
of or damage to any property of Tenant or others by theft or action by a third
party, (b) any injury or damage to persons or property resulting from fire,
explosion, falling plaster, steam, gas, electricity, water, rain or snow leaks
from any part of the Leased Property or from the pipes, appliances or plumbing
works or from the roof, street or subsurface or from any other place or by
dampness or by any other cause of whatsoever nature, (c) any of the foregoing
damage, loss or injury caused by operations in construction of any private,
public or quasi-public work, or (d) any damage, loss or injury caused by or
attributable, in whole or in part, to any latent defect in. the Leased Property.

         26.2     Indemnification. Tenant shall indemnify and hold harmless
Landlord and all Superior Mortgagees and its and their respective partners,
directors, officers, agents and employees from and against any and all claims,
actions, liabilities, losses, penalties, damages, costs and expenses (including,
without limitation, the reasonable fees and expenses of counsel,

                                       19
<PAGE>
including those to enforce this indemnity) (collectively the "Damages"), arising
from or in connection with:

                  (a)      the conduct or management of the Leased Property, or
any work or thing whatsoever done, or any condition created in or about the
Leased Property during the term of this Lease or any holdover period;

                  (b)      any act, omission or negligence of Tenant or any of
its permitted subtenants or permitted licensees or its or their partners,
directors, officers, agents, employees or contractors;

                  (c)      any accident, injury or damage whatever (unless
caused solely by Landlord's negligence) occurring in, at or upon the Leased
Property; and

                  (d)      any breach or default by Tenant in the full and
prompt payment and performance of Tenant's obligations under this Lease.

In case any action or proceeding be brought against Landlord and/or any Superior
Mortgagee and/or its or their partners, directors, officers, agents and/or
employees by reason of any such claim, Tenant, at its expense, upon notice from
Landlord or such Superior Mortgagee, shall resist and defend such action or
proceeding by counsel reasonably satisfactory to Landlord and/or such Superior
Mortgagee. The provisions of this Section 26.2 shall survive the expiration or
earlier termination of this Lease.

         26.3     Landlord for the Time Being. The obligations of Landlord under
this Lease shall not be binding upon Landlord named herein after the sale,
conveyance, assignment or transfer by such Landlord (or upon any subsequent
landlord after the sale, conveyance, assignment or transfer by such subsequent
landlord) of the Leased Property, and in the event of any such sale, conveyance,
assignment or transfer, Landlord shall be and hereby is entirely freed and
relieved of all covenants and obligations of Landlord hereunder, and it shall be
deemed and construed without further agreement between the parties or their
successors in interest, or between the parties and the purchaser, grantee,
assignee or other transferee that such purchaser, grantee, assignee or other
transferee has assumed and agreed to carry out any and all covenants and
obligations of Landlord hereunder. In no event shall any guardian, trustee,
advisor, beneficiary, director, officer, partner, employee, owner or principal
or any partner or other person or entity comprising the Landlord (collectively,
the "Parties"), be liable for the performance of Landlord's obligations under
this Lease. Tenant shall look solely to Landlord to enforce Landlord's
obligations hereunder and shall not seek any damages against any of the Parties.
The liability of Landlord for Landlord's obligations under this Lease shall not
exceed and shall be limited to Landlord's interest in the Leased Property and
Tenant shall not look to any other property or assets of Landlord or the
property or assets of any of the Parties in seeking either to enforce Landlord's
obligations under this Lease or to satisfy a judgment for Landlord's failure to
perform such obligations.

                                       20
<PAGE>
         27.      AUTHORITY.

         27.1     Landlord's Authority. Landlord covenants that Landlord is a
limited partnership duly organized and validly existing under the laws of the
State of New Jersey. This Lease is, all other agreements and documents to be
delivered by the Landlord hereunder, when executed and delivered by the Landlord
in accordance with the provisions hereof and thereof, will valid and binding
obligations of the Landlord enforceable in accordance with their respective
terms, except as the same may be limited by bankruptcy, insolvency, moratorium,
reorganization or other laws of general applicability relating to or affecting
the enforcement of creditors' rights generally or by general principles of
equity.

         27.2     Tenant's Authority. Tenant covenants that Tenant is a
corporation duly organized and validly existing under the laws of the State of
Delaware, and that Tenant is duly authorized to enter into this Lease. This
Lease is, and all other agreements and documents to delivered by Tenant
hereunder are valid and binding obligations of Tenant enforceable accordance
with their respective terms, except as the same may be limited by bankruptcy,
insolvency, moratorium, reorganization or other laws of general applicability
relating to affecting the enforcement of creditors' rights generally or by
general principles of equity.

         IN WITNESS WHEREOF, the parties have caused this Lease to be executed
by their duly authorized representations and, if applicable, and attested, all
as of the day and year first above written.

                                           CORUM REALTY, LIMITED
                                               PARTNERSHIP

                                           By:
                                              ----------------------------------
                                              Name: Mildred C. Campbell
                                              Title: General Partner

                                           By:
                                              ----------------------------------
                                              Name: H. Stuart Campbell
                                              Title: General Partner

                                           IMCLONE SYSTEMS INCORPORATED

                                           By:
                                              ----------------------------------
                                              Name:
                                              Title:

                                       21
<PAGE>
                           Exhibit A - Leased Property

The Leased Property consists of the hatched area marked in the diagram below:

                          [LEASED PROPERTY BLUEPRINT]
<PAGE>
                                    EXHIBIT D

                               Post Closing Lease

<PAGE>
                               POST CLOSING LEASE

                                     between

                     IMCLONE SYSTEMS INCORPORATED, landlord,

                                       and

                     HIGHLAND PACKAGING LABS, INC., tenant,

                              As of January , 2002
<PAGE>
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            PAGE
<S>                                                                         <C>
1.  THE LEASED PROPERTY ...................................................   1
2.  TERM ..................................................................   2
3.  USE OF THE LEASED PROPERTY ............................................   2
4.  RENT AND ADDITIONAL RENT ..............................................   3
5.  INSURANCE .............................................................   4
6.  UTILITIES .............................................................   6
7   DESTRUCTION ...........................................................   6
8.  COMPLIANCE WITH LAWS ..................................................   6
9.  ALTERATIONS AND REPAIRS ...............................................   7
10. SIGNS .................................................................   8
11. ACCESS TO THE PROPERTY ................................................   8
12. ASSIGNMENT AND SUBLETTING .............................................   9
13. CONDEMNATION ..........................................................  10
14. ENVIRONMENTAL COMPLIANCE ..............................................  10
15. SURRENDER BY TENANT AT END OF TERM ....................................  12
16. EVENT OF DEFAULT BY TENANT/OTHER TENANT DEFAULTS ......................  13
17. SUBORDINATION .........................................................  14
18. QUIET ENJOYMENT .......................................................  15
19. CERTIFICATES ..........................................................  15
20. NOTICES ...............................................................  16
21. INTERPRETATION ........................................................  16
22. BROKERAGE REPRESENTATION ..............................................  17
23. ENTIRE AGREEMENT/ NO WAIVER ...........................................  17
24. NEW JERSEY LAW ........................................................  19
25. CONSENTS ..............................................................  19
26. LIMITATION OF LIABILITY AND INDEMNIFICATION ...........................  19
27. AUTHORITY .............................................................  21
</TABLE>
<PAGE>
                               POST CLOSING LEASE

         THIS POST CLOSING LEASE (this "Lease"), made as of the ____ th day of
January, 2002, by and between IMCLONE SYSTEMS INCORPORATED, a Delaware
corporation, having an address at 180 Varick Street, New York, New York 10014
(the "Landlord"), and HIGHLAND PACKAGING LABS, INC., a New Jersey corporation,
having an address at 1181 Route 202, Somerville, New Jersey 08876 (the
"Tenant").

                                   WITNESSETH:

         WHEREAS, contemporaneously with the execution and delivery hereof and
pursuant to an Agreement of Purchase and Sale dated as of December ___, 2001,
(the "Agreement"), Landlord has purchased from Corum Realty, Limited Partnership
("Corum"), the Property (as defined in the Agreement), including, without
limitation, the land and improvements commonly known as 1181 Route 202,
Branchburg, Somerset County, New Jersey; and

         WHEREAS, Tenant operates a packaging operation (the "Business") at a
portion of the Property; and

         WHEREAS, Tenant is under common control with Corum and is wholly owned
by Corum's general partners; and

         WHEREAS, Tenant is currently marketing the Business for sale as a going
concern and desires to occupy the Leased Property for the term provided herein
in order to effect such sale or to otherwise liquidate the Business; and

         WHEREAS, Landlord is hereby leasing to Tenant, and Tenant is hereby
leasing from Landlord, a portion of the Property more fully described or
depicted on Exhibit A hereto (the "Leased Property"), on the terms and
conditions set forth herein.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and commitments contained therein, the parties covenant and agree as
follows:

         1. THE LEASED PROPERTY. Landlord, for and in consideration of the
covenants and agreements hereinafter mentioned, reserved and contained, to be
kept and performed by Tenant, does hereby demise and lease unto Tenant and
Tenant does hereby lease and hire from Landlord, the Leased Property, together
with access across, through and/or over portions of the Property as is and shall
be necessary or advisable to allow Tenant to access the Leased Property for the
purposes hereinafter provided. It is understood and agreed between the parties
hereto that the Tenant has thoroughly inspected the Leased Property demised
hereunder and, is thoroughly familiar with the condition of the Leased Property
demised hereunder and agree to accept the Leased Property in its "as is, where
is, with all faults" condition. Landlord makes no representations whatsoever
with respect to the condition of Leased Property demised hereunder.
<PAGE>
          2. TERM. Landlord leases unto Tenant and Tenant hires from Landlord
 the Leased Property for the Term to commence on the Commencement Date, and to
 end on the Expiration Date. The "Commencement Date" shall be the date hereof.
 The "Expiration Date" shall be the earliest to occur of (a) April 30, 2002;
 unless the term of this Lease is extended through June 30, 2002 in accordance
 with Paragraph 15 hereof (b) the date, if any, mutually agreed upon by the
 parties and (c) any other termination of this Lease in accordance with its
 terms.

         3. USE OF THE LEASED PROPERTY.

         3.1 Use of the Leased Property. Tenant covenants and agrees to use the
Leased Property only for the Permitted Use and at all times subject to the
Approvals (as hereinafter defined), if any. The term "Permitted Use" means the
operation of the Business, and for no other use whatsoever.

         3.2 Approvals. Tenant, at its cost and expense, shall duly procure and
thereafter maintain all Approvals, if any, which shall be required for the
proper and lawful conduct of the Permitted Use on the Leased Property or any
part thereof, and Tenant shall furnish a photostatic copy thereof to Landlord
upon Landlord's request therefor. The term "Approvals" means all governmental
requirements and conditions relating to the Permitted Use. Tenant shall at all
times comply with the terms and conditions of each such Approval. Landlord and
Tenant agree to reasonably cooperate with each other in the obtaining of the
necessary permits and approvals in connection with each other's operations.

         3.3 Reservation of Rights. Landlord reserves the right at any time,
without incurring any liability to Tenant therefor, and without affecting or
reducing any of Tenant's covenants and obligations hereunder, to make such
changes, alterations, additions and improvements in or to the street entrances,
parking lots, roadways and driveways, as Landlord, in its sole and absolute
discretion, shall deem necessary or desirable to comply with the requirements of
any federal, state or local governmental agency, commission, board or political
subdivision (each a "Regulatory Authority"). Landlord reserves the right, and
Tenant shall permit Landlord, (i) to install, erect, use and maintain pipes,
ducts and conduits in and through the Leased Property and (ii) to make such
repairs, changes, alterations, additions and improvements in or to the Leased
Property as Landlord is required to make by Regulatory Authorities. Landlord
shall be allowed to take all materials into and upon the Leased Property that
may be required in connection therewith without any liability to Tenant and
without the same constituting an eviction of Tenant, in whole or in part, and
without any abatement or reduction in Rent payable hereunder or any reduction of
Tenant's covenants and obligations hereunder.

                                       2
<PAGE>
         4. RENT AND ADDITIONAL RENT.

         4.1 Minimum Rent.

            No minimum rent shall be payable by Tenant to Landlord in
connection with this Lease. The term "Rent" means all amounts payable by Tenant
to Landlord hereunder, including minimum rent, if any, and Additional Rent (as
hereinafter defined).

         4.2 Additional Rent. Any and all charges other than the minimum rent
payable by Tenant under the various sections of this Lease, whether to Landlord
or directly to other persons shall be referred to herein as "Additional Rent".
Tenant shall provide Landlord with proof of payment thereof upon Landlord's
request. In the event of non-payment of any item of Additional Rent, Landlord
shall have all the rights and remedies with respect thereto as is herein and at
law provided for in case of non-payment of Rent.

         4.3 Operating Expenses. During the Term of this Lease, Tenant shall
timely pay (a) by direct contract or by reimbursement of Landlord promptly after
demand all costs and expenses relating to or allocable to the ownership,
management, repair, maintenance, replacement, restoration or operation of the
Leased Property (collectively, "LP Operating Expenses"), if any, and (b) by
reimbursement of Landlord promptly after demand, Tenant's Proportionate Share
(as defined below) of all costs and relating to or allocable to the ownership,
management, repair, maintenance, replacement, restoration or operation of the
portion of the Property not constituting the Leased Property (collectively, the
"Property Operating Expenses").

         4.4 Tenant's Proportionate Share. Tenant's Proportionate Share shall be
equal to one hundred (100%) percent.

         4.5 Taxes. Tenant shall pay to Landlord promptly after demand Tenant's
Proportionate Share of all Taxes. The term "Taxes" means the sum of the real
estate taxes and assessments, special assessments, impositions, and other
governmental charges of every kind and nature whatsoever, extraordinary, as well
as ordinary, unforeseen, as well as foreseen, and each and every installment
thereof, which during the Term shall be charged, laid, levied, assessed,
imposed, become due and payable, or liens upon the Property or any part thereof,
by any federal, state or local authorities having jurisdiction thereto, and all
taxes, assessments, imposition and charges levied or imposed in place of or in
addition to any of the foregoing, together with all interest and penalties
thereof, under or by virtue of all present or future laws, ordinances,
requirements, orders, directions, rules or regulations of any Regulatory
Authority. Taxes shall not include any federal, state or municipal income tax,
or any profit, inheritance, estate, succession, gift, franchise or transfer tax
imposed directly upon Landlord. The term "Tax Year" means each 12 month period
(deemed for the purposes of this definition to have 365 days) established as the
tax year by the taxing authorities having lawful jurisdiction over the Property.

         4.6 Security Deposit. Contemporaneously with the execution and delivery
hereof, Tenant has deposited with Landlord a security deposit in the amount of
$400,000 for the

                                       3
<PAGE>
payment of Rent and the full and faithful performance by the Tenant of the
covenants and conditions on the part of the Tenant to be performed hereunder. In
the event Tenant defaults in respect to any of the terms, provisions and
conditions of this Lease, including, but not limited to, the payment of Rent and
Additional Rent, Landlord may use, apply or retain the whole or any part of the
security so deposited to the extent required for the payment of any Rent and
Additional Rent or any other sum as to which Tenant is in default or for any sum
which Landlord may expend or may be required to expend by reason of Tenant's
default in respect of any of the terms, covenants and conditions of this Lease,
including but not limited to, any damages resulting from Tenant's failing to
timely and properly vacate the Leased Property on the Expiration Date, whether
such damages accrued before or after summary proceedings or other re-entry by
Landlord. Subject to the provisions of this Section 4.6, said sum (or the
balance thereof) shall be returned to the Tenant, without interest, after the
expiration of the term hereof, provided that the Tenant has fully and faithfully
performed all such covenants and conditions and is not in arrears in Rent. If
Landlord applies or retains any part of the security so deposited, Tenant, upon
demand, shall deposit with Landlord the amount so applied or retained, so that
Landlord shall have the full security on hand at all times during the term of
this Lease. Tenant further covenants that it will not assign or encumber or
attempt to assign or encumber the monies deposited herein as security and that
neither Landlord nor its successors or assigns shall be bound by any assignment,
encumbrance, attempted assignment or attempted encumbrance.

         5. INSURANCE.

         5.1 Tenant's Insurance. Tenant shall maintain during the term of this
Lease the following coverages.

                  (a) Physical Damage Insurance covering (i) all of Tenant's
property on the Leased Property, and (ii) any improvements, additions and
alterations made to the Leased Property by Tenant (collectively, "Tenant
Improvements").

                  (b) Comprehensive General Liability Insurance including
Product/Completed Operations Liability, covering the insured against claims of
bodily injury, personal injury and property damage arising out of Tenant's
operations, assumed liabilities or use of the Leased Property, including a Broad
Form Comprehensive General Liability endorsement covering the insuring
provisions of this Lease and the performance by Tenant of the indemnity
agreements set forth in this Lease, for limits of liability not less than:

                      Bodily Injury and              $1,000,000 each occurrence
                      Property Damage Liability      $1,000,000 annual aggregate

                      Personal Injury Liability      $1,000,000 each occurrence
                                                     $1,000,000 annual aggregate
                                                     0% Insured's participation

                                        4
<PAGE>
         (c) Automobile Liability Insurance for all owned, nonowned and hired
vehicles, covering the insured against claims of bodily injury and property
damage with limits of liability not less than $1,000,000 each occurrence.

         (d) Workers Compensation and Employer's Liability Insurance with limits
of liability not less than:

             Workers Compensation               Statutory Limits

             Employer's Liability               $1,000,000/$1,000,000/$1,000,000

         (e) Umbrella Liability Insurance covering the insured against claims of
bodily injury, personal injury and property damage with limits of liability of
not less than $4,000,000 in excess of the limits provided in 5.1(b) and 5.1(c).

         (f) Tenant shall carry and maintain during the entire term of this
Lease, at Tenant's sole cost and expense, increased amounts of the insurance
required to be carried by Tenant pursuant to this Article, and such other
reasonable types of insurance coverage and in such reasonable amounts, as may be
reasonably requested by Landlord.

         5.2 Compliance With Insurance Requirements. Tenant shall neither use
the Leased Property nor permit the Leased Property to be used or acts to be done
therein which will (a) increase the premium of any insurance described in this
Article; (b) cause a cancellation of or be in conflict with any such insurance
policies; (c) result in a refusal by insurance companies of good standing to
insure the Leased Property in amounts reasonably satisfactory to Landlord; or
(d) subject Landlord to any liability or responsibility for injury to any person
or property by reason of any operation being conducted in the Leased Property.
Tenant shall, at Tenant's expense, comply as to the Leased Property with all
insurance company requirements pertaining to the use of the Leased Property. If
Tenant's conduct or use of the Leased Property causes any increase in the
premium for such insurance policies, then Tenant shall reimburse Landlord for
any such increase. Tenant, at Tenant's expense, shall comply with all rules,
orders, regulations or requirements of the American Insurance Association
(formerly the National Board of Fire Underwriters) AND with any similar body.

         5.3 Waiver of Subrogation. Landlord and Tenant agree to have their
respective insurance companies issuing property damage insurance waive any
rights of subrogation that such companies may have against Landlord or Tenant.
As long as such waivers of subrogation are contained in their respective
insurance policies, Landlord and Tenant hereby waive any right that either may
have against the other on account of any loss or damage to their respective
property to the extent such loss or damage is insurable under policies of
insurance for fire and all risk coverage, theft, public liability, or other
similar insurance.

         5.4 Standards for Insurance. The minimum limits of policies of
insurance required of Tenant under this Lease shall in no event limit the
liability of Tenant under this Lease. Such

                                        5
<PAGE>
insurance shall (i) name Landlord, and any other party it so specifies, as
additional insureds; (ii) specifically cover the liability assumed by Tenant
under this Lease; (iii) be issued by an insurance company having a rating of not
less than A-X in Best's Insurance Guide or which is otherwise acceptable to
Landlord and licensed to do business in the State of New Jersey; (iv) be primary
insurance as to all claims thereunder and provide that any insurance carried by
Landlord is excess and non-contributing with any insurance requirement of
Tenant; (v) provide that said insurance shall not be canceled or coverage
changed unless thirty (30) days' prior written notice shall have been given to
Landlord and any mortgagee of Landlord; and (vi) contain a cross-liability
endorsement or severability of interest clause acceptable to Landlord. Tenant
shall deliver duplicate copies of said policy or policies or original
certificates thereof to Landlord on or before the Commencement Date and at least
thirty (30) days before the expiration dates thereof. In the event Tenant shall
fail to procure such insurance, or to deliver such policies or certificate,
Landlord may, at its option, procure such policies for the account of Tenant,
and the cost thereof shall be paid to Landlord as Additional Rent within five
(5) days after delivery to Tenant of bills therefor.

         6. UTILITIES. Tenant shall pay all utility meter, connection and
service charges, including those for gas, sewer, electricity, water and standby
sprinkler and any deposits required by utility suppliers. Landlord shall not be
required to furnish any utilities to Tenant.

         7. DESTRUCTION. If at any time during the term hereof the Leased
Property shall be damaged or destroyed in whole or in part by fire or other
casualty or by the elements, Tenant shall give notice thereof to Landlord.
Landlord, at Landlord's option, may terminate this Lease upon notice to Tenant
and Tenant shall have thirty (30) days after the giving of such notice to vacate
and surrender the Leased Property to Landlord.

         8. COMPLIANCE WITH LAWS. Tenant, at its expense, shall comply with the
Approvals and with all laws, orders, ordinances, regulations and requirements of
Regulatory Authorities and directions made pursuant to law by any public officer
or officers which, in respect of the Leased Property or the use and occupancy
thereof or the abatement of any nuisance in, on or about the Leased Property,
shall impose any violation, order or duty upon Landlord or Tenant arising from
(a) Tenant's occupancy, use or manner of use of the Leased Property, (b) any
installations, equipment or other property therein, (c) any cause or condition
created by or at the instance of Tenant, or (d) any breach of any of Tenant's
obligations hereunder. Tenant shall pay to Landlord, as Additional Rent
hereunder, promptly upon being billed therefor, amounts equal to all costs,
expenses, fines, penalties and damages which may be imposed upon or incurred by
Landlord by reason of or arising out of Tenant's failure to fully and promptly
comply with and observe the provisions of this Section. Tenant shall give prompt
notice to Landlord of any notice that Tenant may receive of the violation of any
law, ordinance, order, regulation, or requirement of any public authority or
direction of any public officer or official applicable to the Leased Property.

                                        6
<PAGE>
         9. ALTERATIONS AND REPAIRS.

         9.1 Tenant's Obligations to Repair and Maintain.

                  (a) Tenant, at its sole cost and expense, throughout the term
of this Lease, shall keep and maintain in good working order and condition the
Leased Property, the Tenant Improvements, the equipment, fixtures and
appurtenances therein, and shall make all repairs and replacements, interior and
exterior, structural and non-structural, ordinary and extraordinary, in and to
the Leased Property as and when needed to keep and maintain them in good working
order and condition. In addition, Tenant shall be responsible, at its sole cost
and expense, for making all repairs, wherever on or with respect to the Leased
Property occurring, the need for which is caused by or arises out of (i) the
performance or existence of any Tenant's construction work or alterations, (ii)
the moving of any property of Tenant in or out of the Property, and (iii) the
acts, omission, neglect, improper conduct or other cause of Tenant or any of its
permitted sublessees, or its or their employees, agents, contractors, visitors,
licensees or invitees.

                  (b) All repairs, maintenance and replacements which Tenant is
responsible for pursuant to this Section shall be performed in accordance with
the requirements of this Article. If Tenant fails to make any repairs,
restorations or replacements for which Tenant is responsible under this Lease,
Landlord, after notice to Tenant and reasonable opportunity to do so, except in
an emergency when no notice shall be required, may (but shall not be obligated
to) make same and Landlord's costs of doing so shall be collectible as
Additional Rent hereunder and shall be paid by Tenant to Landlord within five
(5) days after rendition of Landlord's bill or statement therefor.

         9.2 Limitation in Liability. Except as otherwise may be expressly
provided in this Lease, Landlord shall have no liability to Tenant, nor shall
Tenant's covenants and obligations under this Lease be reduced or abated in any
manner whatsoever by reason of any inconvenience, annoyance, interruption or
injury to business arising from Landlord's making any repairs or changes which
Landlord is required or permitted by this Lease, or required by law, to make in
or to any portion of the Property.

         9.3 Tenant Changes. Tenant shall make no alterations, decorations,
installations, additions or improvements in or to the Leased Property.

         9.4 Mechanic's Lien.

                  (a) Tenant will not do any act or suffer any act which will,
in any way, encumber the title of Landlord (or Tenant) in and to the Leased
Property nor will the interest or estate of Landlord or Tenant in the Leased
Property be in any way subject to any claim by way of lien or encumbrance,
whether by operation of law or by virtue of any express or implied contract by
Tenant. Tenant will not suffer or permit any liens to be filed against the
Leased Property, or any part thereof, by reason of any work, labor, services or
materials done for, or supplied, or claimed to have been done for, or supplied
to Tenant, or anyone holding the Leased

                                       7
<PAGE>
Property, or any part thereof, through or under Tenant. If any such lien is at
any time filed against the Leased Property, Tenant will cause the same to be
discharged of record within ten (10) days after the date of filing the same, by
either payment, deposit or bonding and if Tenant shall fail to do so, then, in
addition to any other right or remedy of Landlord, Landlord may, but shall not
be obligated to, procure the discharge of the same either by paying the amount
claimed to be due by deposit in court or bonding, and/or Landlord will be
entitled, if Landlord so elects, to compel the prosecution of an action for the
foreclosure of such lien by the lien or and to pay the amount of the judgment,
if any, in favor of the lienor with interest, costs and allowances. Any amount
paid or deposited by Landlord for any of the aforesaid purposes, and all legal
and other expenses of Landlord, including reasonable attorneys' fees, in
defending such action or in procuring the discharge of such lien, with all
necessary disbursements in connection therewith, will become due and payable as
Additional Rent on the date of payment or deposit as the case may be.

                  (b) Nothing in this Lease shall be deemed to be, or construed
in any way as constituting, the consent or request of Landlord, express or
implied by inference or otherwise, to any person, firm or corporation for the
performance of any labor or the furnishing of any materials for any
construction, rebuilding, alteration or repair of or to the Leased Property or
any part thereof, nor as giving Tenant any right, power or authority to contract
for or permit the rendering of any services or the furnishing of any materials
which might in any way give rise to a right to file any lien against Landlord's
interest in the Leased Property.

         10. SIGNS. Tenant may maintain its currently existing exterior and
interior signs on the Leased Property; provided, however, that such signs are
consistent with the Approvals and comply with all laws, ordinances and
regulations of Regulatory Authorities.

         11. ACCESS TO THE PROPERTY. Tenant shall permit Landlord or its agents
to enter the Leased Property, at reasonable times, for the purpose of inspecting
the Leased Property; provided, however, that Landlord shall be under no
obligation to so inspect. Landlord agrees not to interfere with Tenant's
business operations in exercising its rights hereunder and to give Tenant prior
notice of its exercise of such rights. Tenant is and shall be in exclusive
control and possession of the Leased Property as provided herein, and Landlord
shall not in any event whatsoever be liable for any injury or damage to any
Leased Property or to any person happening on or about the Leased Property, nor
for any injury or damage to the Leased Property, nor to any property of Tenant,
or of any other person located on in the Leased Property. The provisions hereof
permitting Landlord to enter and inspect the Leased Property are made for the
purpose of enabling Landlord to be informed as to whether Tenant is complying
with the agreements, terms, covenants and conditions hereof and to do such acts
as Tenant shall fail to do.

                                       8
<PAGE>
         12. ASSIGNMENT AND SUBLETTING.

         12.1 Prohibited Transfers.

                  (a) Tenant shall not, whether voluntarily or involuntarily, by
operation of law or otherwise, without Landlord's consent, which Landlord may
withhold in its sole and absolute discretion, (i) assign or otherwise transfer
this Lease or any interest therein or offer or advertise to do so, except as set
forth in Section 12.3 below; and (ii) sublet or suffer or permit the Leased
Property or any part thereof to be used, occupied or utilized by anyone other
than Tenant or offer or advertise to do so, or (iii) mortgage, pledge, encumber
or otherwise hypothecate (any of which shall be referred to as a "Mortgaging")
this Lease or the Leased Property or any part thereof in any manner whatsoever.

                  (b) The consent by Landlord to any assignment, subletting or
mortgaging shall not in any manner be construed to relieve Tenant, or any
assignee or sublessee from obtaining Landlord's prior express written consent to
any other or further assignment, subletting, or Mortgaging. In no event shall
any permitted sublessee assign or encumber its sublease or further sublet all or
a portion of its sublet space, or otherwise suffer or permit the sublet space or
any part thereof to be used or occupied by others.

         12.2 Transfers of Interests in Entities. For purposes of this Article,
the transfer by any means of the legal or beneficial interests in either voting
power, capital or profits in Tenant or in any corporation, partnership or other
entity directly, or indirectly comprising Tenant, of the majority of the issued
and outstanding capital stock of any corporate Tenant or subtenant, or the
transfer of a majority of the beneficial interest in any other entity
(partnership or otherwise) which is the Tenant or a subtenant, however
accomplished, whether in a single transaction or in a series of related or
unrelated transactions, shall be deemed an assignment of this Lease or a
sublease, as the case may be. Tenant agrees to furnish Landlord with such
information as Landlord may reasonably request from time to time in order to
assure Landlord that neither Tenant nor any permitted subtenant have violated
the provisions of this Article. Notwithstanding the foregoing, the trading of
Tenant's shares on a public stock market shall not be a transfer or assignment
in violation of this Article.

         12.3 Limited-Right of Assignment. Tenant's interest in this lease may
be assigned to the buyer of the Business on (but not prior to) the closing date
of the sale of the Business; provided, that (x) Landlord shall have received no
less than ten (10) days prior notice of such assignment and (y) assignee
acknowledges in writing that assignee shall vacate the Property by no later than
April 30, 2002 unless this Lease is extended to June 30, 2002 pursuant to
Section 15.1(b) below, in which event assignee shall vacate the Property by no
later than June 30, 2002. Tenant shall not be relieved of any of its obligations
under this Lease by virtue of any assignment and shall remain fully liable
hereunder.

                                        9
<PAGE>
         13. CONDEMNATION. Each party shall give to the other prompt notice of
any actual or threatened taking or condemnation of all or any portion of any of
the Leased Property. If, during the Term of this Leased Lease, there shall occur
a taking or condemnation of all or any substantial portion of the Property, or a
deed has been given in lieu thereof, or, if there is pending any proceeding in
condemnation or eminent domain for the taking or use of all or any substantial
part of the Leased Property, then, in such event, this Lease shall terminate, in
which event neither party shall have any further rights or obligations hereunder
except as expressly set forth to the contrary herein. If there is a condemnation
or taking of any Leased Property which is not deemed to be substantial, this
Lease shall continue in effect. In any event, all damages awarded for such
taking under the power of eminent domain, whether for the whole or a part of the
Leased Property, shall belong to and be the property of Landlord, whether such
damages shall be awarded as compensation for diminution in value to the
leasehold or to the fee; provided, however, that Tenant shall, to the extent
that same shall not reduce Landlord's award, be entitled to any award from the
condemnor for loss of business and depreciation to, and cost of removal of,
stock and fixtures. The terms "condemnation," "taking" or similar terms as
herein used shall mean the acquisition by a public or quasi-public authority
having the right to take the same by condemnation or by power of eminent domain
or otherwise, regardless of whether such taking is the result of actual
condemnation or of voluntary conveyance.

         14. ENVIRONMENTAL COMPLIANCE.

         14.1 Environmental Compliance.

                  (a) Tenant, at its expense, shall comply with all applicable
Environmental Laws with respect to its use and occupancy of the Leased Property;
provided, however, that nothing herein contained shall be construed as limiting
or waiving any of Corum's obligations as seller under the Agreement.

                  (b) No Hazardous Materials, shall be handled, upon, about,
above or beneath the Leased Property or any portion thereof by or on behalf of
Tenant, or its contractors, clients, officers, directors, employees, agents, or
invitees. Any such Hazardous Materials so Handled shall be known as Tenant's
Hazardous Materials. Notwithstanding the foregoing, normal quantities of
Tenant's Hazardous Materials customarily used in connection with the Permitted
Use may be Handled at the Leased Property. Tenant's Hazardous Materials
permitted by the foregoing sentence shall be Handled at all times in compliance
with the manufacturer's instructions therefor and all applicable Environmental
Laws. Tenant agrees to execute affidavits, representations, and the like from
time to time at Landlord's request stating Tenant's best knowledge and belief
regarding the presence of Hazardous Materials on the Leased Property.

                  (c) Landlord and Tenant shall immediately notify the other if
it receives: (i) any notices or correspondence from the NJDEP (as defined below)
alleging the presence or release of any Hazardous Material in, on, around or
under the Leased Property; or (ii) any information suggesting or demonstrating
the release or presence of any Hazardous Material in, on, around or under the
Leased Property.

                                       10
<PAGE>
         14.2 ISRA.

                  (a) Landlord and Tenant acknowledge that the Permitted Use may
cause the Leased Property to be subject to the provisions of the Industrial Site
Recovery Act, N.J.S.A. 13:1K-6 et seq. and the regulations promulgated
thereunder and any successor legislation and regulations ("ISRA"). Except as set
forth in the Agreement to be obligations of Corum, as seller, Tenant shall, at
Tenant's own expense, make all submissions to, provide all information to, and
comply with all requirements of, the Industrial Site Evaluation Element (the
"Element") of the New Jersey Department of Environmental Protection ("NJDEP") in
connection with any ISRA compliance required as a result of Tenant's use of the
Leased Property. Tenant shall provide copies to Landlord of all materials
submitted to and received from NJDEP pursuant to ISRA.

                  (b) Tenant's obligations under this Article shall arise if
there is any "closing operations" or "transferring ownership or operations" of
an "industrial establishment" as defined by ISRA, at the Leased Property if
triggered by Tenant or by a "change in ownership" of Tenant as defined by ISRA;
provided however, that as a result of the closing under the Agreement Tenant
shall not be obligated to comply with ISRA separately from Corum's pending
application, unless required to do so by NJDEP, but Tenant shall file a General
Information Notice (GIN) under the existing ISRA case number, if necessary.
Prior to the expiration or sooner termination of this Lease, Tenant shall
deliver to Landlord evidence of compliance with ISRA, or evidence that no
compliance with ISRA is required, in the form of (i) a nonapplicability
determination, (ii) a de minimis quantity exemption as set forth in Section 9 of
ISRA, (iii) an approved a "No Further Action Letter" as defined by ISRA and
issued by NJDEP, or (iv) a letter from NJDEP stating that an approved "Remedial
Action Workplan" (as described in (c) below) has been completed and the Leased
Property is in full compliance with ISRA.

                  (c) Should NJDEP determine that a "Remedial Action Workplan"
as defined under ISRA, be prepared and/or that a "remediation", as defined under
ISRA, be undertaken because of any spills or discharges of Hazardous Materials
at the Leased Property which occur during the Term of this Lease and which
spills are caused by Tenant, its agents, employees or independent contractors,
then Tenant shall, at Tenant's own expense, prepare and submit the required
information and provide the necessary "funding source" if required, as defined
by ISRA, and carry out the approved remediation.

         14.3. Indemnification. Tenant shall indemnify, defend and hold harmless
Landlord from and against any and all claims, actions, liabilities, losses,
penalties, damages, fines, costs and expenses (including, without limitation,
the reasonable fees and expenses of counsel, engineers, other professionals or
experts, including those to enforce this indemnity) of any kind whatsoever,
foreseen or unforeseen, which Landlord may incur by reason of Tenant's failure
to fulfill Tenant's obligations under this Article.

                                       11
<PAGE>
         14.4 Defined Terms. The following terms have the meanings ascribed
thereto:

                  Environmental Laws. All now and hereafter existing statutes,
laws, ordinances, codes, regulations, rules, rulings, orders, decrees,
directives, policies and requirements by any Regulatory Authority regulating,
relating to, or imposing liability or standards of conduct concerning public
health and safety or the environment, including, without limitation, the
Industrial Site Recovery Act (N.J.S.A. 13:1K-6 et seq.) ("ISRA"), the Spill
Compensation and Control Act (N.J.S.A. 58:10-23.11 et seq.) ("Spill Act"), the
Solid Waste Management Act (N.J.S.A. 13:1E-1 et seq.), the Resource and
Conservation Recovery Act (Section 6901 et seq.) ("RCRA"), the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. Section 9601
et seq.) ("CERCLA").

                  Handle. Any installation, handling, generation, storage,
treatment, use, disposal, discharge, release, manufacture, refinement, presence,
migration, emission, abatement, removal, transportation, or any other activity
of any type in connection with or involving Hazardous Substances. The term
defined shall also include other verb forms of the verb "to handle".

                  Hazardous Materials or Hazardous Substances. Any toxic
substances, hazardous wastes, or hazardous substances, as defined in or pursuant
to any Environmental Law.

         14.5 Survival. Tenant's obligations and liabilities under this Article
shall survive the expiration or earlier termination of this Lease.

         15. SURRENDER BY TENANT AT END OF TERM.

         15.1 Termination.

                  (a) This Lease may be terminated upon mutual agreement of the
parties.

                  (b) This Lease shall terminate: (i) on April 30, 2002 unless
Tenant shall have given notice to Landlord on or before March 31, 2002, that
Tenant shall have entered into a contract to sell the Business as a going
concern and Tenant requires the extension of this Lease to effectuate an orderly
transfer of the assets of Tenant to the buyer of the Business, in which event
the Expiration Date of this Lease shall be extended to June 30, 2002, or (ii) in
the event that this Lease is otherwise terminated in accordance with its terms,
in which event the Expiration Date shall be the date on which this Lease is so
terminated.

         15.2 Surrender by Tenant at End of Term. On the Expiration Date, or the
earlier termination hereof, unless resulting from the Closing under the
Agreement, Tenant shall peaceably and quietly surrender and deliver up to
Landlord possession of the Property, vacant and broom clean, in as good
condition and repair as at the Commencement Date, ordinary wear and tear and
damage by condemnation excepted. By the Expiration Date or earlier termination
hereof, Tenant shall remove from the Leased Property all personal property and
chattels of Tenant.

                                       12
<PAGE>
         15.3 Landlord's Right to Remove. If Tenant fails to remove Tenant's
personal property at such time as Landlord may be entitled to re-enter and take
possession of the Leased Property pursuant to any provision of this Lease,
Landlord may remove Tenant's personal property from the Leased Property and to
dispose of it or place it in a reasonably safe place of storage, such moving,
disposal and storage to be at the sole cost and expense of Tenant. Tenant
covenants and agrees to pay to Landlord all reasonable expenses which Landlord
incurs for such removal, demolition, disposal and storage. Alternatively, at the
option of Landlord, Tenant shall be deemed to have abandoned any or all of
Tenant's personal property and the same may be disposed of or shall become the
property of Landlord.

         15.4 Holdover Rent. If Tenant holds over or remains in possession of
the Leased Property after the expiration of the Term or after any earlier
termination of this Lease, such holding over or continued possession shall
create only a month to month tenancy. Tenant recognizes and agrees that (i) the
damage to Landlord resulting from any failure by Tenant to surrender the Leased
Property timely will be substantial, will exceed the amount of monthly Rent
theretofore payable hereunder, and will be impossible of accurate measurement,
and (ii) the lack of minimum rent payable hereunder has been established in
conjunction with and as part of the transactions contemplated by the Agreement,
and absent the Agreement, Landlord would not have agreed to lease the Leased
Property to Tenant in consideration of payment of only Additional Rent payable
hereunder. Therefore, Tenant shall pay rent for the period from the expiration
or sooner termination of the Term of this Lease through and including the date
when Tenant shall actually vacate and surrender the Leased Property in
accordance with and as required by the provisions of this Lease, equal to the
aggregate of (a) monthly rent at the rate of $100,000 per month ("Minimum
Holdover Rent"), which the parties acknowledge is reasonable and fair
compensation for the use of the Leased Property and (b) Additional Rent
specified in this Lease. The resulting month to month tenancy may be terminated
at any time by either party as of the last day of any calendar month on not less
than thirty (30) days' written notice given to the other party.

         16. EVENT OF DEFAULT BY TENANT/OTHER TENANT DEFAULTS.

         16.1 Events of Default. If during the Term there shall occur any of the
following events ("Events of Default"):

                  (a) If Tenant shall fail to pay Additional Rent within ten
(10) days after written notice from Landlord; or

                  (b) In the event that Tenant shall fail to observe any other
requirement, obligation, agreement, covenant or condition of this Lease, other
than the Events of Default expressly set forth in Section 17.1(a), and any such
failure shall continue for thirty (30) days after written notice from Landlord
specifying the basis for such default, or if such failure cannot reasonably be
remedied within such time period, if Tenant shall not diligently commence to

                                       13
<PAGE>
remedy such failure within such thirty (30) day time period and thereafter
prosecute the same to completion with diligence;

then, at any time following any of such Event of Default, Landlord, may give
Tenant notice of termination of this Lease and take possession of the Property,
using appropriate judicial process. The giving of such notice to Tenant shall
terminate Tenant's right to possession of the Leased Property under this Lease
without discharging Tenant from any of its liabilities hereunder.

         16.2 Conditions Precedent. This Lease shall automatically terminate
without the requirement of any notice in the event that:

                  (a) either party shall have become insolvent, or generally
does not pay its debts as they become due, or admits in writing its inability to
pay its debts, or makes a deed of trust or assignment for the benefit of
creditors; or

                  (b) a petition in bankruptcy, insolvency, receivership,
dissolution or similar proceeding shall have been commenced voluntarily by a
party; or

                  (c) any such proceeding shall have been commenced
involuntarily against a party and the same shall not have been dismissed or
effectively stayed within sixty days from the commencement thereof.

         16.3 Right of Re-Entry If Landlord elects to terminate Tenant's right
to possession of the Leased Property under Section 16.1 following an Event of
Default or under Section 16.2, Landlord shall re-enter and take possession of
the Leased Property (using appropriate judicial process), and Tenant shall be
obligated to pay to Landlord upon demand, and Landlord shall be entitled to
recover of and from Tenant, (a) all Rent payable to the date of termination of
Tenant's right to possession, plus (b) the cost to Landlord of all reasonable
legal and other expenses and costs (including attorney's fees) incurred by
Landlord in obtaining possession of the Leased Property, plus (c) any reasonable
costs and expenses incurred in enforcing any provision of this Lease.

         17. SUBORDINATION.

         17.1 Subordination. This Lease and all rights of Tenant hereunder are
subject and subordinate to all mortgages which may now or hereafter affect the
Property (any of the foregoing being herein referred to as a "Superior
Mortgage") whether or not such Superior Mortgages shall also cover other lands
and/or buildings and/or leases, to each and every advance made or hereafter to
be made under such Superior Mortgages, and to all renewals, modifications,
consolidations, replacements and extensions of such Superior Mortgages. This
Article shall be self-operative and no further instrument of subordination shall
be required. In confirmation of such subordination, Tenant shall promptly
execute, acknowledge and deliver any certificate that Landlord, the holder of
any Superior Mortgage, or any of their respective successors in interest may
reasonably request to evidence such subordination. If Tenant fails to execute,
acknowledge

                                       14
<PAGE>
or deliver any such instruments within seven (7) days after request therefor,
Tenant hereby irrevocably constitutes and appoints Landlord as Tenant's
attorney-in-fact, coupled with an interest, to execute any such certificate or
certificates for and on behalf of Tenant.

         17.2 Attornment. At the option of Landlord or any successor landlord,
including the holder of any Superior Mortgage or the purchaser of the mortgaged
premises in foreclosure who shall succeed to the Landlord's interest herein
(collectively the "Successor Landlord"), Tenant agrees that neither the
foreclosure of a Superior Mortgage, nor the institution of any suit, action,
summary or other proceeding against the Landlord or any Successor Landlord, nor
any foreclosure proceeding brought by the holder of any such Superior Mortgage
to recover possession of the premises covered thereby, shall by operation of the
law or otherwise result in cancellation or termination of this Lease or the
obligations of the Tenant hereunder, and at the option and upon the request of
any such Successor Landlord, Tenant covenants and agrees to attorn to and
recognize such Successor Landlord as Tenant's landlord under this Lease and
shall promptly execute and deliver any instrument that such Successor Landlord
may reasonably request to evidence such attornment. Upon such attornment, this
Lease shall continue in full force and effect as a direct Lease between the
Successor Landlord and Tenant upon all of the terms, conditions and covenants as
are set forth in this Lease except that the Successor Landlord shall not:

                  (a) be liable for any previous act or omission of Landlord
under this Lease;

                  (b) be subject to any offset not expressly provided for in
this Lease, which theretofore shall have accrued to Tenant against Landlord; and

                  (c) be bound by any previous modification of this Lease or by
any previous prepayment of more than one month's Rent, unless such modification
or prepayment shall have been expressly approved in writing by the holder of the
Superior Mortgagee, through or by reason of which the Successor Landlord shall
have succeeded to the rights of Landlord under this Lease.

         18. QUIET ENJOYMENT. Landlord covenants that Tenant, on paying the Rent
and performing the covenants and conditions contained in this Lease, shall and
may peaceably and quietly have, hold and enjoy the Leased Property for the Term
of this Lease, subject to the terms and conditions of this Lease.

         19. CERTIFICATES. Tenant and Landlord each agree at any time and from
time to time during the Term of this Lease, within 30 days after written request
from Landlord or Tenant, as applicable, to execute, acknowledge and deliver to
the other party or to such third person as requested by such other party, 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), and the dates to which
the Additional Rent has been paid in advance, if any, and stating whether or
not, to the best of such certifying party's knowledge, the other party is in
default in the performance of any covenant,

                                       15
<PAGE>
agreement or condition contained in this Lease, and, if so, specifying each such
default of which such certifying party may have knowledge. Such third person
shall have the right to rely upon the contents of any such written statement of
Tenant or Landlord.

         20. NOTICES. Unless otherwise notified in writing to the contrary, any
notice, election or request required or permitted by the terms hereof to be
given by any party hereto shall be effectively delivered for all purposes if
personally delivered or sent by certified or registered mail, return receipt
requested, with first class postage prepaid, or by overnight delivery service
with proof of delivery, and if directed to Landlord, properly addressed to it at
the address for the Landlord set forth in the preamble of this Lease, with a
copy of such notice to the Landlord's attorneys, Wolff & Samson, P.A., 5 Becker
Farm Road, Roseland, New Jersey 07068, Attn: Jeffrey M. Gussoff, Esq., and if
directed to Tenant, properly addressed to it at the address for the Tenant set
forth in the preamble of this Lease, with a copy of such notice to the Tenant's
attorneys, Hoagland, Longo, Moran, Dunst & Doukas, 40 Paterson Street, P.O. Box
480, New Brunswick, New Jersey 08903, Attn: Gary Hoagland, Esq. Every notice,
demand, request or other communication hereunder shall be deemed to have been
given or served (a) at the time that the same shall be deposited with the
overnight courier or deposited in the United States mails, postage prepaid, in
the manner aforesaid, or (b) when received if delivered personally or sent by
facsimile transmission.

         21. INTERPRETATION. Unless otherwise specified, the rules of
construction set forth in this Article shall be applicable for all purposes of
this Lease and all documents or instruments supplemental hereto:

                  (a) All references herein to numbered Articles, Sections,
Subsections, Schedules or Exhibits are references to the Articles, Sections and
Subsections hereof, and the Schedules and Exhibits attached hereto. The terms
"include," "including" and similar terms shall be construed as if followed by
the phrase "without being limited to". Singular words include the plural and
plural words include the singular. The term "person" shall include natural
persons, firms, trusts, partnerships, corporations and any other public and
private legal entities. The term "provisions" when used with respect hereto or
to any other document or instrument, shall be construed as if preceded by the
phrase "terms, covenants, agreements, requirements, conditions and/or." The
terms "hereto," "herein," "hereof," "hereunder" and similar terms shall refer to
this Lease in its entirety, unless the context clearly indicates otherwise.
Article, Section, Subsection, Schedule and Exhibit captions are used for
convenience and reference only and in no way define, limit or affect the
construction of the provisions hereof. No inference in favor of any party shall
be drawn from the fact that such party has drafted any portion hereof. All
recitals set forth in, and all schedules and exhibits to, this Lease are
incorporated by reference in this Lease. The terms "lease" or "sublease" shall
mean "lease, sublease, tenancy, subtenancy, letting, subletting, license or
sublicense" and the term "tenant" shall mean "subtenant, lessee, sublessee,
licensee, sublicensee or occupant." Words importing any gender or number shall
be deemed to refer to the masculine, feminine, neuter, singular or plural as the
identity of the person or item requires. The term "the date hereof" or like term
shall mean the date when a fully executed copy of this Lease has been delivered
to both Landlord and Tenant (or their counsel).

                                       16
<PAGE>
                  (b) If any provision of this Lease is held to be illegal,
invalid or unenforceable, and if the rights or obligations of any party hereto
under this Lease will not be materially and adversely affected thereby, such
provision will be fully severable, this Lease will be construed and enforced as
if such an illegal, invalid or unenforceable provision had never comprised a
part hereof, and the remaining provisions of this Lease will remain in full
force and effect and will not be affected by the illegal, invalid or
unenforceable provision or by its severance.

                  (c) All of the terms and provisions of this Lease shall be
deemed and construed to be "covenants" and "conditions" to be performed by the
respective parties as though words specifically expressing or importing
covenants and conditions were used in each separate term and provision hereof.

                  (d) The parties hereto agree that they have mutually prepared
and reviewed this Lease and no rules of construction shall be adversely applied
against either as the preparer of this Lease.

                  (e) This Lease may be executed simultaneously in a number of
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

         22. BROKERAGE REPRESENTATION. Tenant and Landlord each represents and
warrants to the other that it knows of no person who is entitled to a commission
or sum in lieu thereof in connection with the execution of this Lease or the
creation of the tenancy effected by this Lease, and each agrees to save, defend
and indemnify the other from and against any claims, costs or damages
attributable to any misrepresentation or breach of warranty by the indemnitor
hereunder.

         23. ENTIRE AGREEMENT/ NO WAIVER.

         23.1 Entire Agreement. This Lease, and the exhibits attached hereto,
constitute the entire agreement between the parties with respect to the subject
matter hereof, and supersede any and all prior communications or writings with
respect thereto and there are no oral or written understandings, representations
or commitments of any kind, express or implied, which are not expressly set
forth herein or in the Agreement or on the instruments delivered in connection
with the closing under the Agreement.

         23.2 Modifications Must be in Writing. No oral or written modification
of this Lease by any officer, agent or employee of Tenant or Landlord, either
before or after execution of this Lease, shall be of any force or effect unless
such modification is in writing and signed by both parties.

                                       17
<PAGE>
         23.3 No Waiver of Future Violations. The waiver of any breach or
failure to enforce any of the terms, covenants or conditions of this Lease shall
not in any way (a) affect, limit, modify or waive the future enforcement of such
terms, covenants or conditions, or (b) constitute a waiver of any breach or
failure of any other terms, covenants or conditions, any course of dealing or
custom of the trade notwithstanding, or (c) prevent a subsequent act, which
would have originally constituted a breach or violation, from having all the
force and effect of an original breach or violation.

         23.4 No Waiver Upon Receipt of Rent. The receipt by Landlord of Rent
with knowledge of the breach of any covenant of this Lease shall not be deemed a
waiver of such breach. No payment by Tenant or receipt by Landlord of a lesser
amount than the monthly Rent herein stipulated shall be deemed to be other than
on account of the earliest stipulated Rent, nor shall any endorsement or
statement on any check or any letter accompanying any check or payment of Rent
be deemed an accord and satisfaction, and Landlord may accept and deposit such
check or payment without prejudice to Landlord's right to recover the balance of
such Rent or pursue any other remedy in this Lease provided.

         23.5 Force Majeure. If Landlord or Tenant shall be delayed, hindered in
or prevented from the performance of any acts required hereunder, other than the
payment of Rent, or timely surrender of the Leased Property by Tenant, by reason
of Force Majeure, then performance of such acts shall be excused for the period
of the delay and the period for the performance of any such act shall be
extended for a period equal to the period of such delay. The term "Force
Majeure" means any cause beyond a party's reasonable control, including Acts of
God, strikes, blackouts, failure of power, labor troubles, shortage of materials
or services, governmental preemption in connection with a national or local
emergency, riots, insurrection, the act or failure to act of the other party, or
by reason of any rule, order or regulation of any governmental agency or by
reason of the conditions of supply and demand which have been or are affected by
war, hostilities or similar emergency.

         23.6 Further Assurances. From time to time, at the Landlord's or the
Tenant's reasonable request and without further consideration, the Tenant or the
Landlord, as the case may be, shall execute and deliver such other instruments
and take such other actions as the Landlord or the Tenant may request in order
to more effectively convey, lease to, invest in the Tenant and to put the Tenant
in possession and operating control of all or any part of the Leased Property,
and to otherwise consummate the transactions contemplated hereby.

         23.7 Binding Effect. This Lease shall bind and inure to the benefit of
and be enforceable by the parties hereto, and their respective successors and
assigns.

         23.8 No Third Party Rights. This Lease shall not be construed to create
any rights under this Lease in any third party, whether as a third party
beneficiary or otherwise. Nothing contained herein may be relied upon or
enforced by any person or entity other than the Landlord and the Tenant.

                                       18
<PAGE>
         23.9 No Recording. None of the parties hereto shall have any right to
record or file this Lease or any memorandum or other document relating to this
Lease prior to the Closing, except for a Notice of Settlement.

         24. NEW JERSEY LAW. This Lease shall be governed by and construed in
accordance with the laws of the State of New Jersey. Landlord and Tenant hereby
mutually waive their rights to trial by jury in any action, proceeding or
counterclaim brought by either of the parties hereto against the other on any
matters whatsoever arising out of or in any way connected with this Lease,
Tenant's use or occupancy of the Lease Property, and any claim of injury or
damage. Tenant hereby waives, to the fullest extent permitted by law, the right
to interpose any counterclaim (other than compulsory counterclaims) in any
summary proceeding instituted by Landlord against Tenant or in any action
instituted by Landlord for unpaid Rent under this Lease.

         25. CONSENTS. In the event the Tenant claims or asserts that the
Landlord has violated or failed to perform a covenant of Landlord not to
unreasonably withhold or delay Landlord's consent or approval, or in any case
where Landlord's reasonableness in exercising its judgment is in issue, Tenant's
sole remedy shall be an action for specific performance, declaratory judgment or
injunction and in no event shall Tenant be entitled to any money damages for a
breach of such covenant and in no event shall Tenant claim or assert any claims
for money damages in any action or by way of set-off, defense or counterclaim
and Tenant hereby specifically waives the right to any money damages or other
remedies. Whenever Landlord's consent or approval is required under this Lease,
and this Lease does not specify that such consent or approval shall not be
unreasonably withheld or delayed, Landlord may determine whether to grant or
withhold such consent or approval in its sole and absolute discretion,
regardless of whether such refusal to consent or approve may be deemed
arbitrary. Whenever this Lease requires Landlord's consent or approval, Tenant
shall reimburse Landlord on demand as a condition to granting such consent or
approval any costs that may be incurred in connection with reviewing the request
for consent or approval, including, without limitation, reasonable attorneys'
fees.

         26. LIMITATION OF LIABILITY AND INDEMNIFICATION.

         26.1 Limitation on Liability. Landlord shall not be liable to Tenant
for (a) any loss, injury or damage to property of Tenant or for any loss of or
damage to any property of Tenant or others by theft or action by a third party,
(b) any injury or damage to persons or property resulting from fire, explosion,
falling plaster, steam, gas, electricity, water, rain or snow leaks from any
part of the Leased Property or from the pipes, appliances or plumbing works or
from the roof, street or subsurface or from any other place or by dampness or by
any other cause of whatsoever nature, (c) any of the foregoing damage, loss or
injury caused by operations in construction of any private, public or
quasi-public work, or (d) any damage, loss or injury caused by or attributable,
in whole or in part, to any latent defect in the Leased Property.

                                       19
<PAGE>
         26.2 Indemnification. Tenant shall indemnify and hold harmless Landlord
and all Superior Mortgagees and its and their respective partners, directors,
officers, agents and employees from and against any and all claims, actions,
liabilities, losses, penalties, damages, costs and expenses (including, without
limitation, the reasonable fees and expenses of counsel, including those to
enforce this indemnity) (collectively the "Damages"), arising from or in
connection with:

                  (a) the conduct or management of the Leased Property, or any
work or thing whatsoever done, or any condition created in or about the Leased
Property during the term of this Lease or any holdover period;

                  (b) any act, omission or negligence of Tenant or any of its
permitted subtenants or permitted licensees or its or their partners, directors,
officers, agents, employees or contractors;

                  (c) any accident, injury or damage whatever (unless caused
solely by Landlord's negligence) occurring in, at or upon the Leased Property;
and

                  (d) any breach or default by Tenant in the full and prompt
payment and performance of Tenant's obligations under this Lease.

In case any action or proceeding be brought against Landlord and/or any Superior
Mortgagee and/or its or their partners, directors, officers, agents and/or
employees by reason of any such claim, Tenant, at its expense, upon notice from
Landlord or such Superior Mortgagee, shall resist and defend such action or
proceeding by counsel reasonably satisfactory to Landlord and/or such Superior
Mortgagee. The provisions of this Section 26.2 shall survive the expiration or
earlier termination of this Lease.

         26.3 Landlord for the Time Being. The obligations of Landlord under
this Lease shall not be binding upon Landlord named herein after the sale,
conveyance, assignment or transfer by such Landlord (or upon any subsequent
landlord after the sale, conveyance, assignment or transfer by such subsequent
landlord) of the Leased Property, and in the event of any such sale, conveyance,
assignment or transfer, Landlord shall be and hereby is entirely freed and
relieved of all covenants and obligations of Landlord hereunder, and it shall be
deemed and construed without further agreement between the parties or their
successors in interest, or between the parties and the purchaser, grantee,
assignee or other transferee that such purchaser, grantee, assignee or other
transferee has assumed and agreed to carry out any and all covenants and
obligations of Landlord hereunder. In no event shall any guardian, trustee,
advisor, beneficiary, director, officer, partner, employee, owner or principal
or any partner or other person or entity comprising the Landlord (collectively,
the "Parties"), be liable for the performance of Landlord's obligations under
this Lease. Tenant shall look solely to Landlord to enforce Landlord's
obligations hereunder and shall not seek any damages against any of the Parties.
The liability of Landlord for Landlord's obligations under this Lease shall not
exceed and shall be limited to Landlord's interest in the Leased Property and
Tenant shall not look to any other property or

                                       20
<PAGE>
assets of Landlord or the property or assets of any of the Parties in seeking
either to enforce Landlord's obligations under this Lease or to satisfy a
judgment for Landlord's failure to perform such obligations.

         27. AUTHORITY.

         27.1 Landlord's Authority. Landlord covenants that Landlord is a
corporation duly organized and validly existing under the laws of the State of
Delaware. This Lease is, and all other agreements and documents to be delivered
by the Landlord hereunder, when executed and delivered by the Landlord in
accordance with the provisions hereof and thereof, will be, valid and binding
obligations of the Landlord enforceable in accordance with their respective
terms, except as the same may be limited by bankruptcy, insolvency, moratorium,
reorganization or other laws of general applicability relating to or affecting
the enforcement of creditors' rights generally or by general principles of
equity.

         27.2 Tenant's Authority. Tenant covenants that Tenant is a corporation
duly organized and validly existing under the laws of the State of New Jersey,
and that Tenant is duly authorized to enter into this Lease. This Lease is, and
all other agreements and documents to be delivered by Tenant hereunder are valid
and binding obligations of Tenant enforceable in accordance with their
respective terms, except as the same may be limited by bankruptcy, insolvency,
moratorium, reorganization or other laws of general applicability relating to or
affecting the enforcement of creditors' rights generally or by general
principles of equity.

         IN WITNESS WHEREOF, the parties have caused this Lease to be executed
by their duly authorized representations and, if applicable, and attested, all
as of the day and year first above written.

                                                HIGHLAND PACKAGING LABS, INC.

                                                By: ____________________________
                                                    Name:
                                                    Title:

                                                IMCLONE SYSTEMS INCORPORATED

                                                By: ____________________________
                                                    Name:
                                                    Title:

                                       21
<PAGE>
                          EXHIBIT A - LEASED PROPERTY

The Leased Property consists of all of the property except for the hatched area
marked on the diagram below:

                          [GRAPHIC OF LEASED PROPERTY]<PAGE>
                                                                   EXHIBIT 10(p)

                              EMPLOYMENT AGREEMENT

     EMPLOYMENT AGREEMENT ("AGREEMENT") made as of this 1ST day of January, 2002
between AMSCAN HOLDINGS, INC., a Delaware corporation, with offices at 80
Grasslands Road, Elmsford, New York 10523 (the "COMPANY"), and JAMES F. FLANAGAN
residing at 12708 Granada Lane, Leawood, Kansas 66209 (the "EXECUTIVE").

                                   WITNESSETH,

THAT, WHEREAS,

     A.   The Company is engaged in the business of designing, manufacturing and
          distributing seasonal and everyday party goods and gift items;

     B.   The Executive has heretofore been employed by the Company pursuant to
          an Employment Agreement dated as of July 1, 2001 (the "PRIOR
          EMPLOYMENT AGREEMENT");

     C.   The Company now desires to have Executive serve as its Executive Vice
          President; and

     D.   The Company and Executive desire to terminate the Prior Employment
          Agreement and enter into this agreement to set forth the terms and
          conditions of such continued employment;

     NOW, THEREFORE, in consideration of the premises and of the mutual
agreements hereinafter set forth, the parties hereto agree as follows:

1.   TERMINATION OF PRIOR EMPLOYMENT AGREEMENT.

     The Prior Employment Agreement is terminated simultaneously with the
execution of this Agreement without further obligation of the Company, by mutual
agreement of the parties, and Executive's compensation and terms of employment
shall henceforth be governed by this Agreement.

2.   TERM OF EMPLOYMENT.

     (a) TERM. The Company agrees to employ Executive during the period
commencing on January 1, 2002 and ending on December 31, 2004 (the "INITIAL
TERM") as its Executive Vice President and Executive agrees to be employed by
the Company in such capacity, subject to the termination provisions set forth
hereinafter.

     (b) Extension of Term. The Initial Term of this Agreement shall be extended
after December 31, 2004, for additional successive one year periods (the
"Additional Term") (the Initial Term and any Additional Term are hereinafter
referred to as the "Term"), at the Company's option, on not less than thirty
(30) days prior notice of renewal at the end of each Additional Term.

<PAGE>

3.   POSITION AND DUTIES.

     (a) DUTIES. The Company hereby employs Executive, and Executive accepts
such employment, to serve as Executive Vice President of the Company during the
Term, and, in such capacity, to perform any and all duties consistent with
Executive's position, to the best of Executive's abilities. The Company shall
have the power to determine the specific duties to be performed by Executive,
and the means and the manner by which those duties shall be performed. The
Company's board of directors ("BOARD"), or officers of the Company ("OFFICERS"),
shall have the power to supervise the duties to be performed, the manner of
performing such duties, and the terms for performance thereof. Executive's job
description is subject to modification in the sole discretion of the Board at
any time.

     (b) OTHER SERVICES. During the Period of Employment, Executive shall
perform such other reasonable services for the Company as shall be prescribed
from time to time by the Board; except as provided in Paragraph 4, no additional
compensation shall be payable to the Executive for any services performed by him
as an officer, director or in any other capacity for the Company. As used in
this Agreement, the term "COMPANY" shall include the subsidiaries of the
Company.

     (c) BEST EFFORTS. During the Term, Executive agrees to devote his full
business time, attention and best efforts to the faithful discharge of the
duties described herein and to use his best efforts to promote the interests and
welfare of the Company. During the Term, Executive shall not engage in any other
business activity (except on behalf of affiliates of the Company), regardless of
whether or not it is pursued for gain or profit. The parties hereto understand
and agree that Executive may participate in charitable and similar activities
which may, from time to time, require portions of his time, but which Executive
agrees shall not interfere with the performance of his duties hereunder, and
shall not adversely reflect upon the Company or its operations.

4.   COMPENSATION.

     (a) BASE SALARY. For services hereunder, the Company shall pay Executive a
base salary ("BASE SALARY") equal to $250,000.00 per annum during the Term. The
Base Salary shall be payable to Executive in regular intervals in accordance
with the Company's usual payroll practices. All compensation shall be subject to
such withholding of any federal, state or local taxes as may be required by law
with respect to such payments.

     (b) BONUS. In addition to the Base Salary, Executive will be paid an annual
bonus of $125,000 (the "BONUS"). The payment of the Bonus, shall be subject to
the Company's ability to comply with the terms and covenants of its Bank Credit
Agreements. The Bonus payable hereunder shall be paid no later than the March
30th following the end of the calendar year to which such Bonus corresponds.

5.   STOCK OPTIONS.

As additional compensation to the Executive, simultaneously with the execution
of this Agreement, the Company shall recommend to the Stock Option Committee of
the Board a grant to the Executive

                                      - 2 -
<PAGE>

of a stock option to purchase two and one-half (2.5) shares of the Company's
common stock at the option price and upon the terms and conditions set forth in
the Company's Stock Option Plan; a copy of which has been delivered to
Executive.

6.   RESTRICTED STOCK.

     (a) Upon the execution of this Agreement, Executive is hereby granted three
(3) shares of common stock of the Company (the "RESTRICTED STOCK"), which shares
are subject to vesting as set forth below, and forfeiture to the extent not
vested upon a termination of employment. The foregoing grant of stock is subject
in all respects to the terms of the Amended and Restated Stockholders Agreement
of the Company, dated as of February 20, 2002 (the "STOCKHOLDERS AGREEMENT"), to
which Executive is a party.

     (b) The Restricted Stock granted to Executive hereunder shall vest in full
on December 31, 2004, provided that Executive is employed on such date (the
"VESTING PERIOD").

     (c) Notwithstanding anything to the contrary set forth herein, the
Restricted Stock shall immediately vest upon (i) the occurrence of an IPO (as
defined in the Stockholders Agreement), (ii) the consummation of a transaction
or series of transactions, approved by the Board, pursuant to which a person,
entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the
Securities Exchange Act of 1934, as amended), other than Goldman, Sachs & Co. or
any of its affiliates, acquires a majority of the outstanding voting stock of
the Company (iii) the termination of Executive's employment with the Company (i)
because of Executive's death, (2) by the Company without Cause, (3) by the
Executive because of the Company's material breach of its obligations hereunder,
(4) by the Executive if the Company imposes on Executive duties or work
conditions materially burdensome to the Executive which are inconsistent with
such Executive's prior duties and work conditions or (5) because of the
Executive's Disability (as those terms are defined herein).]. Upon the voluntary
or involuntary termination of the Executive's employment during the Vesting
Period for any reason, other than a reason listed in clause (iii) of the
preceding sentence, any unvested Restricted Stock shall be forfeited and
returned to the Company without payment.

     (d) The Company shall promptly issue to the Executive, as vested one or
more stock certificates in respect of the Restricted Stock, which certificates
shall be registered in the name of the Executive and shall bear an appropriate
legend substantially in the following form:

               The securities represented by this certificate are subject to the
               terms and conditions set forth in (i) an Employment Agreement,
               dated as of January 1, 2002, between the issuer and the
               registered holder hereof and (ii) an Amended and Restated
               Stockholders Agreement, dated as of February 20, 2002, copies of
               each of which may be obtained from the issuer or from the holder
               of this security. No transfer of such

                                      - 3 -
<PAGE>

               securities will be made on the books of the issuer unless
               accompanied by evidence of compliance with the terms of such
               agreements.

               The securities represented by this certificate have not been
               registered under the Securities Act of 1933, as amended, or under
               the securities laws of any state, and may not be sold or
               otherwise disposed of except pursuant to an effective
               registration statement under said Act and applicable state
               securities law or an applicable exemption to the registration
               requirements of such Act or laws.

Such certificates may bear other legends to the extent the Board determines it
to be necessary or appropriate or as may be required by the Stockholders
Agreement. The Board may require that the certificates evidencing the Restricted
Stock be held in custody by the Company until the restrictions thereon shall
have lapsed and that the Executive deliver a stock power, endorsed in blank,
relating to the shares of Restricted Stock.

     (e) During the Restricted Period that Executive shall be entitled to vote
the Restricted Stock and to receive regular quarterly cash dividends and cash
distributions, if any, with respect thereto, but shall have no other rights of a
stockholder with respect thereto.

     (f) The number and kind of shares included in the Restricted Stock (and
thereby subject to the terms and conditions set forth in this Agreement with
respect thereto) shall be adjusted to reflect any merger, reorganization,
consolidation, recapitalization, spin-off, stock dividend, stock split,
extraordinary distribution with respect to the Company's common stock or other
change in corporate structure affecting such common stock, as the Board or a
committee thereof shall deem fair and appropriate.

     (g) At the end of the Vesting Period (with respect to any shares of
Restricted Stock), if the Restricted Stock has not been forfeited, certificates
for such shares shall be delivered to the Executive.

7.   FRINGE BENEFITS.

     As additional consideration for the services of Executive under this
Agreement, the Company shall provide to Executive all fringe benefits provided
by the Company to other management personnel at a comparable level, including
the following:

     (a) CAR ALLOWANCE. Executive shall receive a car allowance in the amount of
$800.00 per month, payable monthly, for costs incurred in connection with the
operation of Executive's car for the business of the Company.

                                      - 4 -
<PAGE>

     (b) VACATION AND SICK LEAVE. Executive shall be entitled to paid vacation,
holiday and sick leave, in the same manner and to the same extent as such
vacation, holiday and sick leave time shall be available to other management
personnel at a comparable level.

     (c) GROUP INSURANCE. The same coverage of group health and group life
insurance that the Company may maintain in effect from time to time for the
benefit of other management personnel at a comparable level; provided, that the
Company reserves the right to amend, modify and/or cease maintaining any or all
such insurance plans that are in effect at any time during the Term, and to
require that employees pay all or a portion of the costs of such policies.

     (d) DEFERRED COMPENSATION PLANS. Participation in any retirement plan,
401(k) plan, profit sharing and/or pension plan that may be enacted by the
Company, in the same manner and to the same extent as such plan participation is
available to the Company's other management personnel at a comparable level, and
subject to the provisions and requirements of such plans.

     Notwithstanding the foregoing, the Company reserves the right to amend,
modify and/or cease maintaining any or all such retirement, 401(k),
profit-sharing and/or pension plans that are in effect at any time during the
Term, and to require that employees pay all or a portion of the costs of such
plans, so long as Executive is treated similarly to other management personnel
at a comparable level.

8.   BUSINESS EXPENSES.

     Executive may incur, for the benefit of the Company and in furtherance of
the Company's business, various reasonable expenses in accordance with the
budget and policies of the Company, as determined by its Board from time to
time, for the purpose of promoting the business of the Company. In furtherance
of the foregoing, and not in limitation thereof, the Company agrees, upon
presentation by Executive from time to time of itemized accountings therefor, to
pay or to reimburse Executive for, all reasonably necessary expenses of travel
and entertainment undertaken by Executive for the benefit of the Company.
Executive shall support any claim for reimbursement for expenses by adequate
proof of such expenditures in the form of cancelled checks, vouchers, bills or
in other form satisfactory to the Company.

9.   TERMINATION.

     (a) TERMINATION FOR CAUSE. The Company may terminate this Agreement, and
(except as provided below) all of the Company's obligations hereunder, for
"CAUSE" (as hereinafter defined). Such termination shall be effected by notice
thereof delivered by the Company to Executive, and shall be effective as of the
date of such notice. In the event of termination for cause, Executive shall be
entitled to receive all Base Salary earned to the date of termination, but all
other rights of Executive hereunder, including the right to receive any unvested
Restricted Stock or to exercise vested Stock Options, shall terminate as of the
effective date of Executive's termination. As used herein, "CAUSE" shall mean:
(i) Executive's conviction of a felony which involves moral turpitude; or
(ii)Executive's repeated failure to discharge his assignments from the Officers
or the Board consistent with the responsibilities of his position and the
failure by Executive to correct such failure within 30 days after written notice
thereof from the Company; (iii) the commission by Executive of any crime or
intentional act of fraud against the Company; (iv) any conduct on the part of
Executive which has a

                                     - 5 -
<PAGE>

material adverse effect upon the performance by Executive of his duties
hereunder or upon the relationship of customers or employees of the Company with
the Company or (v)Executive's gross negligence or willful misconduct in the
performance of his duties which has a material adverse effect on the Company's
operations, profits or business.

     (b) TERMINATION WITHOUT CAUSE. The Company may terminate this Agreement and
(except as provided below) all of the Company's obligations hereunder without
cause by giving Executive 30 days prior written notice thereof. In the event of
termination without cause, Executive shall be entitled to receive (i) all Base
Salary earned but unpaid to the date of termination (ii) a pro rata portion of
the Bonus for the year in which such termination occurs based on the relative
period of employment during such year (the "PRO RATA BONUS"); (iii) severance
equal to twelve (12) months Base Salary ("SEVERANCE"); (iv) reimbursement of
costs associated with a job search related to the expense of a temporary office
and administrative support in an amount not to exceed $1,500.00 per month, such
amount payable until the earlier of (A) Executive terminating his job search or
(B) twelve (12) months following termination of employment hereunder; (v) the
right to exercise any vested portion of the Stock Options in accordance with the
terms of the Company's Stock Option Plan and (vi) the immediate vesting of the
Restricted Stock. All vested Restricted Stock of Executive shall continue to be
governed by the terms of the Stockholders Agreement following termination of
employment. All other rights of Executive hereunder, including the right to
receive to exercise unvested Stock Options shall terminate as of the effective
date of Executive's termination. Severance payable hereunder shall be payable in
normal payroll installments during the Severance period.

     (c) RESIGNATION OF EXECUTIVE. If Executive resigns, Executive shall be
entitled to receive all Base Salary earned to the effective date of resignation,
which shall be payable upon such resignation, but all other rights of Employee
hereunder, including the right to receive any unvested Restricted Stock or to
exercise any unvested portion of the Stock Options, shall terminate as of the
effective date of Executive's resignation.

     (d) EXECUTIVE'S TOTAL DISABILITY. If Executive is terminated by the
Company, or Executive resigns, due to Executive's "TOTAL DISABILITY" (as
hereinafter defined), Executive shall be entitled to receive (i) all Base Salary
earned to the date of termination, which shall be payable upon such termination
or resignation, (ii) the Pro Rata Bonus, (iii) the right to exercise the vested
portion of his Stock Options, if any and (iv) the immediate vesting of the
Restricted Stock. All other rights of Executive hereunder, including the right
to exercise any unvested portion of the Stock Options, shall terminate as of the
date of Executive's termination or resignation. As used herein, "TOTAL
DISABILITY" shall mean any physical or mental ailment which prevents Executive
from performing the duties incident to Executive's employment with the Company
which has continued for a period of ninety (90) consecutive days and which is
expected, based upon the results of an examination by a physician mutually
acceptable to Executive and the Company, to be of permanent duration.

     (e) DEATH. If Executive dies during the Term, Executive's estate shall be
entitled to receive (i) all Base Salary earned to the date of death, which shall
be payable upon the date of death, (ii) the Pro Rata Bonus, (iii) the right to
exercise the vested portion of his Stock Options, if any, in accordance with the
terms of the Stock Option Plan, and (iv) the immediate vesting of the Restricted

                                     - 6 -
<PAGE>

Stock. All other rights of Executive hereunder, including the right to exercise
any unvested portion of the Stock Options, shall terminate.

10.  RESTRICTIVE COVENANT.

     In consideration of Executive's special and unique services and Executive's
position, which by its nature exposes Executive to trade secrets, proprietary
information and other confidential material and assets of the Company, Executive
covenants and agrees as follows with the Company:

     (a) For the purposes of this Agreement, the term "CONFIDENTIAL INFORMATION"
shall mean any data, proprietary information, financial information, trade
secrets, and other materials and information, including, without limitation,
contracts, customer lists, supplier lists, names of representatives of customers
and suppliers, Company information as to specific customer needs, requirements,
purchasing history, pricing information, information relating to costs,
marketing, selling, servicing, technology, know-how, plans, processes,
techniques, inventions, discoveries, formulae, designs, patterns or devices in
any way concerning the operation of the Company's business. The term
Confidential Information does not include any information which (i) at the time
of disclosure is generally available to the public (other than as a result of a
disclosure directly or indirectly by Executive), or (ii) has been independently
acquired or developed by a third party not obligated to keep such information
confidential.

     (b) Executive hereby agrees that during the term of Executive's employment
by the Company and at all times thereafter that he: (i) will keep confidential
and protect all Confidential Information (as hereinabove defined) known to him
or in his possession, (ii) will not disclose any Confidential Information to any
person or entity, except as may be required in the performance by of his duties
as an employee of the Company, (iii) will not use any Confidential Information
except for the exclusive benefit of the Company and (iv) will return any
Confidential Information and/or documents containing Confidential Information at
the end of the term or at any time at the Company's request.

     (c) During the Covenant Period (as hereinafter defined) Executive shall
not:

          (i)  directly or indirectly (whether as owner, principal, agent,
               partner, officer, employee, independent contractor, consultant,
               stockholder, or otherwise), engage or participate or have any
               financial interest in or perform services for, any entity which
               offers any service in competition with the Company or engage in
               any business or activity which is substantially the same as any
               business or activity related to the business which the Company or
               any of its affiliates is now or may hereafter become engaged, in
               any location where such activity would be in competition with the
               business of the Company as conducted at the time of termination
               of Executive's employment with the Company. Executive
               acknowledges that the Company now carries on its business in many
               trading areas throughout the world and in particular in the
               United States and Canada.

          (ii) For himself or with or as an agent for any other person, firm,
               corporation or

                                     - 7 -
<PAGE>

               entity, directly or indirectly, solicit, interfere with, endeavor
               to entice away from, divert or attempt to divert or otherwise
               interfere with, or disrupt the business relationship of the
               Company with, (i) any person or entity who is a client, customer
               or business contact of the Company during the Covenant Period, or
               (ii) any potential clients, customers or business contacts with
               whom the Company is actively negotiating at the time of
               termination of Executive's employment with the Company.

          (iii) directly or indirectly, for his own benefit or for the benefit
               of any other person, firm, corporation or entity, divert, or
               attempt to divert, solicit, recruit, entice or hire away any
               employees of the Company, whether or not any such employee is a
               full-time, part-time or temporary employee and whether or not
               such person's employment is for a determined period or at will,
               unless such person shall have ceased to be an employee of the
               Company for a period of at least 12 months.

     (d) As used in this Agreement, the term "COVENANT PERIOD" shall mean the
period commencing on the date of this Agreement and ending one (1) year
following the effective date of termination.

     (e) During the Term, Executive will promptly disclose to the Company, and
that the Company will own all right, title and interest in, all inventions, and
other intellectual property (the "INTELLECTUAL PROPERTY") which he conceives or
develops during the course of his employment (excluding that which he conceives
or develops without the use of the Company's time, resources or facilities and
which does not relate to the Company's past, present or planned future
activities), will affix appropriate legends and copyright notices indicating the
Company's ownership of all Intellectual Property and all underlying
documentation, and will execute such further assignments and other documents as
the Company consider necessary to vest, perfect, maintain or defend the
Company's right, title and interest in the Intellectual Property.

     (f) Executive will deliver promptly to the Company on termination of his
employment by the Company, or at any other time the Company may so request, all
memoranda, notes, records, reports and other documents (and all copies thereof)
relating to the business of the Company which he obtained while employed by, or
otherwise serving or acting on behalf of, the Company and which he may then
possess or have under his control or relating to the Intellectual Property.

     (g) In addition to a right to accounting by the Company and/or damages
and/or any other relief to which the Company may be entitled as a result of
Executive's breach of the provisions of this Paragraph 10, the Company will be
entitled to injunctive relief restraining any such breach or threatened breach,
or the continuation of such breach, by Executive, provided, however that, if a
court of competent jurisdiction shall determine that this covenant shall be
enforceable only if limited to a shorter period of time or to a smaller
geographical area than is herein expressly provided, or otherwise limited, then
and in such event, this covenant shall be deemed to be limited to the extent so
determined to be enforceable, in the same manner and to the same extent as if
such limits were

                                     - 8 -
<PAGE>

expressly provided herein.

     (h) The Company may assign its rights and remedies against Executive to any
person or entity, and such rights and remedies may be enforced by any successors
or assigns of the Company.

11.  COMPANY'S REPRESENTATIONS.

     The Company hereby represents and warrants to Executive that: (a) it has
full power and corporate authority to execute and deliver this Agreement and to
perform its obligations hereunder, (b) such execution, delivery and performance
will not (with the giving of notice or the lapse of time or both) result in the
breach of any agreements or other obligations to which it is a party or is
otherwise bound, (c) the execution and delivery of this Agreement by the Company
is not in violation of the Company's certificate of incorporation or by-laws,
and (d) this Agreement is the legal, valid and binding obligation of the Company
which is enforceable against the Company in accordance with its terms.

12.  REPRESENTATIONS BY EXECUTIVE.

     (a) Executive warrants and represents to the Company that, to the best of
Executive's knowledge, each of the following is true, correct and complete on
the date of this Agreement:

          (i)  The execution, delivery and performance of this Agreement by
               Executive, and the consummation of the transactions contemplated
               hereunder, do not and will not conflict with, violate or result
               in the breach of any of the terms or conditions of, or constitute
               a default under, (1) any contract, agreement, commitment or other
               instrument or obligation to which Executive is a party, or (2)
               any common law duty that may be owed by Executive to any former
               employer or other person or entity or to any of their respective
               current or former affiliates, shareholders, officers, or
               directors, or (3) any law, regulation, ordinance or decree to
               which Executive is subject.

          (ii) Executive has the power, authority and capacity to enter into
               this Agreement and to perform all of his obligations hereunder.

          (iii) No permit, consent, approval, or authorization of, or
               designation, declaration or filing with, any person or entity is
               required by Executive in connection with the execution or
               delivery by her of this Agreement or the consummation of the
               transactions contemplated hereunder.

     (b) Executive shall indemnify the Company, and each of the Company's
shareholders, officers, directors, employees and agents, from and against any
and all claims, demands, damages, fines, penalties, losses, liabilities,
interests, costs and expenses (including, without limitation, reasonable
attorney fees and expenses, and expert fees and expenses) arising from or
related to any breach by Employee of any of the representations or warranties
made by Executive.

     (c) INVESTMENT INTENTION; NO RESALES. Executive represents and warrants
that

                                     - 9 -
<PAGE>

Executive is acquiring the Restricted Stock for investment purposes only, solely
for his own account and not with a view to, or for resale in connection with,
the distribution or other disposition thereof or with any present intention of
distributing or reselling any Restricted Stock, except for such distributions
and dispositions as are both explicitly permitted under this Agreement and the
Stockholders Agreement and effected in compliance with the Securities Act of
1933, as amended (the "SECURITIES ACT"), and the rules and regulations
thereunder, and all applicable state securities or "blue sky" laws. The
Executive agrees and acknowledges that such executive will not, directly or
indirectly offer, transfer, sell, assign, pledge, hypothecate or otherwise
dispose of any Restricted Stock, or solicit any offers to purchase or otherwise
acquire or take a pledge of any Restricted Stock, other than transfers, sales,
assignments, pledges, hypothecations or other dispositions explicitly permitted
by the Stockholders Agreement and provided that (x) any such transfer, sale,
assignment, pledge, hypothecation or other disposition is in accordance with the
terms and provisions of the Stockholders Agreement and (y) (i) the transfer,
sale, assignment, pledge, hypothecation or other disposition is pursuant to an
effective registration statement under the Securities Act and has been
registered under all applicable state securities or "blue sky" laws, or (ii) the
Executive shall have furnished the Company with an opinion of counsel (which
counsel and the form and substance of which opinion shall be reasonably
satisfactory to the Company), to the effect that no such registration is
required because of the availability of an exemption from registration under the
Securities Act and the rules and regulations in effect thereunder and under all
applicable state securities or "blue sky" laws.

     (d) STOCK UNREGISTERED. The Executive acknowledges and represents that
Executive has been advised that (i) the Restricted Stock, upon issuance, will
not have been registered under the Securities Act; (ii) the Restricted Stock
must be held for an indefinite period and such Executive must continue to bear
the economic risk of the investment in the Restricted Stock unless it is
subsequently registered under the Securities Act or an exemption from such
registration is available; (iii) there is no, and it is not anticipated that
there will be any, public market for the Restricted Stock; (iv) Rule 144
promulgated under the Securities Act ("RULE 144") will not be available with
respect to the sales of any securities of the Company and the Company has made
no covenant to make such Rule 144 available; (v) if and when the Restricted
Stock may be disposed of without registration in reliance on Rule 144, such
disposition can be made only in limited amounts in accordance with the
Stockholders Agreement; (vi) if the Rule 144 exemption is not available, public
offer or sale without registration will require the availability of an exemption
under the Securities Act; (vii) a restrictive legend or legends as provided for
in the Stockholders Agreement shall be placed on the certificates representing
the Restricted Stock; (viii) the Stockholders Agreement restricts the sale or
transfer of shares of Restricted Stock other than at specified times and under
specified circumstances; and (ix) a notation shall be made in the appropriate
records of the Company indicating that the Restricted Stock is subject to
restrictions on transfer and, if the Company should at some time in the future
engage the services of a securities transfer agent, appropriate stop transfer
instructions may be issued to such transfer agent with respect to the Restricted
Stock.

     (e) ADDITIONAL INVESTMENT REPRESENTATIONS. The Executive represents and
warrants that (i) the Executive's financial situation is such that the Executive
can afford to bear the economic risk of holding the Restricted Stock for an
indefinite period of time and suffer complete loss of the Executive's investment
in the Restricted Stock; (ii) the Executive's knowledge and experience in

                                     - 10 -
<PAGE>

financial and business matters (and, in particular, with respect to the Company)
are such that the Executive is capable of evaluating the merits and risks of the
Executive's investment in the Restricted Stock; (iii) the Executive understands
that the Restricted Stock is a speculative investment which involves a high
degree of risk of loss of the Executive's investment therein, that there are
substantial restrictions on the transferability of the Restricted Stock and that
on the date of this Agreement and for an indefinite period following such date
there will be no public market for the Restricted Stick and, accordingly, it may
not be possible to liquidate the Executive's investment in the Company at all,
including in case of emergency; (iv) the Executive and the Executive's
representatives, including the Executive's professional, tax and other advisors,
have carefully reviewed the financial and other information with respect to the
Company and its subsidiaries and the Executive understands and has taken
cognizance of (or has been advised by the Executive's representatives as to) all
the risks related to an investment in the Restricted Stock; (v) in making the
Executive's decision to invest in the Restricted Stock hereunder, the Executive
has relied upon independent investigations made by the Executive and, to the
extent believed by the Executive to be appropriate, the Executive's
representatives, including the Executive's own professional, tax and other
advisors; (vi) the Executive and the Executive's representatives have received
and read this Agreement, the Stockholders Agreement and all other documents
related to and executed or to be executed in connection with the transactions
contemplated hereby and thereby, and have been given the opportunity to examine
for a reasonable time prior to the date hereof all documents and to ask
questions of, and to receive answers from the Company and its representatives
concerning the terms and conditions of the investment in the Restricted Stock
and to obtain any additional information necessary to verify the accuracy of the
information supplied to it, and the Executive and the Executive's
representatives have received all additional information requested by them, and
no representations have been made to the Executive or such representatives
concerning the Restricted Stock, their respective affiliates, their businesses
or prospects or other matters, except as set forth in this Agreement; and (vii)
the Executive is an officer of the Company holding the position of Executive
Vice President of Sales and Marketing as of the date hereof, is familiar with
the operations and businesses of the Company, has access to all material
financial and other information available from the Company, and has significant
business experience in the party goods or similar business.

13.  SCOPE OF RESTRICTIONS.

     If any severable provision of this Agreement shall be held invalid or
unenforceable, such invalidity or unenforceability shall attach only to such
provision and shall not in any manner affect or render invalid or unenforceable
any other provision of this Agreement, and this Agreement shall be carried out
as if any such invalid or unenforceable provision were not contained herein;
provided, however, that if any of the restrictions contained in Paragraph 10
hereof shall be deemed to be unenforceable by reason of the extent, duration or
geographical scope thereof, or otherwise, then such restriction shall be deemed
reduced to such extent, duration, geographical scope or in such other manner as
otherwise required to make it enforceable, and, in such reduced form, Paragraph
10 hereof shall then be enforceable in the manner contemplated hereby.

14.  NOTICES.

     Any notice hereunder shall be sufficient if sent either (a) by hand, or (b)
by certified mail, return receipt requested, or (c) by commercial overnight
delivery service, in any event with postage,

                                     - 11 -
<PAGE>

fees and delivery charges prepaid. Such notice shall be deemed to have been
given on receipt, if delivered by hand or by overnight carrier, or three
business days after the date of deposit in an official depository of the United
States mail, if mailed. All notices shall be mailed or delivered, as aforesaid,
addressed to the party to be notified at such party's address set forth below or
at such other address as the party to be notified may have otherwise designated,
by notice in writing, with copies to their respective attorneys as set forth
below:

         If to the Company, at:      AMSCAN HOLDINGS, INC.
                                     80 Grasslands Road
                                     Elmsford, New York 10523

                                     Attention:  James M. Harrison, President
                                     Telephone:  (914) 784-4000
                                     Facsimile:   (914) 345-2056

         with a copy to:             KURZMAN EISENBERG CORBIN
                                     LEVER & GOODMAN, LLP
                                     One North Broadway, 10th Floor
                                     White Plains, New York  10601
                                     Attention:  Joel S. Lever, Esq.
                                     Telephone:  (914) 285-9800
                                     Facsimile:   (914) 285-9855

         If to Executive, to:        JAMES F. FLANAGAN
                                     12708 Granada Lane
                                     Leawood, KS 66209

15.  MISCELLANEOUS.

     (a) The parties severally acknowledge that they have not relied upon any
representations, warranties, negotiations, understandings, arrangements, or
other inducements not expressly set forth herein in entering into this
Agreement.

     (b) This Agreement may not be modified except by written modification
signed by all parties hereto, and its terms and conditions may not be deemed
waived except by written waiver signed by the party to be charged with such
waiver.

     (c) This Agreement contains the entire agreement and understanding by and
between the Company and Executive with respect to Executive's employment by the
Company, and supersedes all oral and written prior understandings and agreements
between the Company and Executive relating to the subject matter of this
Agreement and Executive's relationship to the Company.

     (d) This Agreement may be executed in counterparts, each of which will be
deemed an

                                     - 12 -
<PAGE>

original of this Agreement but all of which together will constitute one
Agreement.

     (e) This Agreement has been made in, and its validity and interpretation
will be determined under the internal laws of, the State of New York applicable
to contracts made and to be wholly performed therein. Any suit, action or other
proceeding in connection with this Agreement shall be brought by any party
hereto in a court of record in the State of New York, County of Westchester or
in the United States District Court for the Southern District of New York, each
of the parties hereto consenting to the jurisdiction of such courts for such
purpose.

     (f) This Agreement is binding upon and inures to the benefit of the
parties and their personal representatives, successors and assigns.

     (g) The paragraph headings used in this Agreement are included solely for
convenience and shall not affect or be used in connection with the
interpretation of this Agreement. Schedules annexed hereto are a part of this
Agreement as if set forth herein at length.

     (h) The rights and benefits of Executive under this Agreement are personal
to Executive and no such right or benefit shall be subject to voluntary or
involuntary alienation, assignment or transfer. The Company may not assign its
rights under this Agreement to any other person or entity other than a wholly
owned subsidiary or a corporation into which the Company may merge or to which
the Company may sell all or substantially all of its assets.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the day
and year first above written.

                                        AMSCAN HOLDINGS, INC.

                                        By: /s/ James M. Harrison
                                            ------------------------------------
                                            Name:  James M. Harrison
                                            Title: President

                                    EXECUTIVE:

                                            /s/ James F. Flanagan
                                            ------------------------------------
                                            JAMES F. FLANAGAN

                                     - 13 -

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