Document:

Exhibit 10.2

 

CONFORMED COPY

 

LEASE AGREEMENT, dated April 27, 2006, between THOMAS MINOR
ASSOCIATES, LLC, having an address c/o Henry Toolan, 12 Glenwood Drive, Saddle
River, New Jersey 07458 (“Landlord”) and FEDERAL MARKETING CORP d/b/a CREATIVE
HOMEOWNER (“Tenant”), having an address of 15 Wellman Avenue, North Chelmsford,
Massachusetts 01863.

 

PREAMBLE

 

BASIC LEASE PROVISIONS AND DEFINITIONS.

 

In addition to other terms
elsewhere defined in this Lease, the following terms whenever used in this
Lease should have only the meanings set forth in this Preamble, unless such
meanings are expressly modified, limited or expanded elsewhere herein.

 

1.             Premises:  The property located at 24 Park Way, Upper
Saddle River, New Jersey, 07458 which property is further described on Exhibit A attached hereto and made a part
hereof, consisting of the real property (the “Land”) and the improvements and
structures located thereon (the “Building”).

 

2.             Term:  Five (5) years with three (3) consecutive
five (5)-year options to extend.

 

3.             Commencement Date:  April 27, 2006.

 

4.             Expiration Date:  Noon on April 26, 2011.

 

5              Permitted Use:  Publishing, book and magazine
distribution and warehousing facility and general office space incidental to
such use; provided, however, in no event shall Tenant have the right to conduct
any printing operations at the Premises.

 

6              Fixed Rent:  Two Hundred Seventy Six Thousand
Ninety and 75/100 ($276,090.75) Dollars per annum (the “Annual Base Rent”)
(being Twenty Three Thousand Seven and 56/100 ($23,007.56) Dollars per month).

 

7.             Late Charge:  Five percent (5%) of the amount
of the payment due.

 

8.             Lease Year:            shall mean each calendar year (or portion thereof)
occurring during the Term.

 

9.             Security Deposit:  None.

 

10.           Tenant’s NAICS Series Identification Number for
Environmental Information (as per United States Office of Management &
Budget):  PCU323117323117

 

 

The parties hereby agree to the
following terms and conditions:

 

1.             Premises, Term and Purpose.

 

(a)           Landlord does hereby lease to Tenant, and Tenant
does hereby lease from Landlord, the Premises for the Term commencing on the
Commencement Date and ending on the Expiration Date, or such earlier date upon
which the Term may expire or be terminated pursuant to the provisions of this
Lease or pursuant to Law.

 

(b)           The Premises shall be used by Tenant for the
Permitted Use and for no other use or purpose without Landlord’s consent, which
consent shall not be unreasonably withheld, conditioned or delayed. Tenant
shall not use or occupy the Premises or any part thereof, for any purpose
deemed unlawful, disreputable, or extra-hazardous on account of fire or other
casualty, or for any purposes which shall impair the character of the Premises.
Tenant, at its sole cost and expense shall obtain any consents, licenses,
permits or approvals required to conduct its business at the Premises.

 

2.             Rent.

 

(a)           The Rent (hereinafter defined) payable by Tenant
pursuant to this Lease is intended to be absolutely and completely net to
Landlord, and all charges and expenses imposed upon the Premises incurred in
connection with its ownership, use, occupancy, care, maintenance, operation and
control, whether foreseen or unforeseen, regardless of the nature of such
expenses or the remaining period of the Term, shall be paid by Tenant, except
that Landlord shall pay its own income taxes, if any, on the Fixed Rent and
Additional Rent (hereinafter defined) payable hereunder.

 

(b)           The Rent reserved under this Lease for the Term
hereof shall be and consist of (a) the Fixed Rent payable in equal monthly
installments in advance, on the first day of each and every calendar month
during the Term (except that Tenant shall pay the first monthly installment
upon signing this Lease); plus (b) such additional rent and other charges (“Additional
Rent”) as are due and payable pursuant to this Lease, which Additional Rent
shall be payable as hereinafter provided, all to be paid directly to the applicable
party, in lawful money of the United States of America
(hereinafter Fixed Rent and Additional Rent are sometimes collectively referred
to as “Rent.”).

 

(c)           Tenant does hereby covenant and agree promptly to
pay the Fixed Rent and Additional Rent herein reserved as and when the same
shall become due and payable, without demand therefor, and without any set-off
or deduction whatsoever. All Additional Rent which is not due and payable on a
monthly basis during the Term, unless otherwise specified herein, shall be due
and payable, (i) if payable to a third party, within the time permitted for payment
without interest, penalty or default, (ii) if payable to Landlord without
specific payment terms set forth herein, within thirty (30) days of delivery by
Landlord to Tenant of notice to pay the same, and (iii) if payable to Landlord
in a specific time or manner set forth herein, in accordance therewith.

 

(d)           In the event that any payment of Fixed Rent or
Additional Rent payable to Landlord shall be paid after the due date for same
provided herein, Tenant shall pay, together with such payment, the Late Charge
and a like additional Late Charge for each thirty (30) days or portion thereof
that such payment shall remain unpaid. Notwithstanding the foregoing, Tenant
shall not be required to pay a late charge on the first or second late payment
in any period of twelve (12) consecutive months, unless such payments remain
unpaid for ten (10) days after written notice to Tenant.

 

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3.             Expenses.
(a)  Tenant shall pay, as Additional
Rent, all costs and expenses of any kind or type whatsoever, foreseen or
unforeseen, relating to the Premises or the improvements thereon (“Expenses”);
provided, however, Expenses shall not include expenses initiated by Landlord
that are unrelated to this Lease or to Tenant’s use and/or occupancy of the
Premises or the maintenance thereof. Expenses shall include, without
limitation, Real Estate Taxes (as hereinafter defined), operating expenses,
utility expenses, costs of maintenance, repair and/or replacement of any
portion of the Premises or the improvements thereon (including, without
limitation, interior, exterior and structural portions thereof but specifically
excluding Landlord’s Repair Obligations), costs of additions, alterations and
improvements to the Premises (whether made voluntarily by Tenant or whether
required pursuant to this Lease or by Law (as hereinafter defined) and whether,
without limitation, such additions alterations or improvements are interior,
exterior or structural), and all other expenses of any kind or nature relating
to the Premises or the operation thereof. Notwithstanding the foregoing, Tenant
shall have no obligation to make any structural repairs or alterations (i)
except to the extent necessitated by the negligence or acts or omissions of
Tenant, or (ii) required pursuant to Law, except to the extent necessitated by
Tenant’s particular use of the Premises as opposed to general warehouse,
distribution or office use. All of such Expenses, with the exception of Real
Estate Taxes, shall be paid directly to the person or persons providing the
goods or services giving rise to the Expenses and all such persons shall look
solely to Tenant for the payment of same.

 

(b) (i) “Real Estate Taxes”
shall mean all real estate taxes, duties or assessments (special or otherwise),
water and sewer rents whether ordinary or extraordinary, general or special,
foreseen or unforeseen, of any kind and nature whatsoever, which at any time
during the Term of this Lease shall be assessed, levied, confirmed, imposed
upon or grow out of, or become due and payable in respect of, or become a lien
on or be attributable in any manner to any part of the Premises, or of the
rents receivable therefrom, or any part thereof or any use thereon or any
facility located therein or used in connection therewith or any other charge or
other payment required to be paid to any governmental authority.
Notwithstanding the foregoing, Tenant shall not be required to pay any income
or franchise tax, net profits tax, estate tax, inheritance tax, or payroll tax
of Landlord; provided, however, that if any governmental authority imposes,
assesses or levies tax on rent or any other tax upon Landlord as a substitute
in whole or in part for real estate taxes or assessments, the substitute tax
shall be deemed to be Real Estate Taxes, whether or not any of the foregoing
shall be a so called “Real Estate Tax”

 

      (ii)  Tenant shall pay throughout the term hereof,
as additional rent (“Additional Rent”), at least ten (10) days before any fine,
penalty or interest may be added for non-payment, all Real Estate Taxes. If any
Real Estate Taxes are assessed for a period of time which begins before or ends
after the Term, then Tenant shall only be required to pay the portion of those
Real Estate Taxes that is allocable to the Term on a per diem basis. If any
Real Estate Taxes are payable in installments, Tenant shall only be obligated
to pay those Real Estate Taxes over the longest permissible period and shall
only be responsible for the payment of those installments (calculated over the
longest permissible period) allocable to the Term, which shall be determined on
a per diem basis as described in the preceding sentence. Tenant shall provide
reasonable proof to Landlord that each payment of Real Estate Taxes required
hereunder has been made. At Landlord’s option, which Landlord must exercise in
writing and may change from time to time in writing, Tenant shall either (i)
mail a copy of the check and the payment coupon (if available) to Landlord
simultaneously with Tenant mailing them to the taxing authority, together with
a letter from Tenant certifying that the original check was mailed to the
taxing authority on the same day or (ii) mail a copy of the cancelled check and
a copy of the payment coupon (if available) to Landlord within a reasonable
period after receiving the cancelled check from Tenant’s bank. Landlord
acknowledges that the cancelled check may not be available for some time due to
deposit and clearing delays and the normal timing of

 

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Tenant’s bank’s return of cancelled checks. Landlord shall
deliver all tax payment coupons for Real Estate Taxes in its possession to
Tenant within thirty (30) days after the execution of this Lease, and shall,
within that thirty (30) day period, notify the relevant taxing authorities to
issue future bills for Real Estate Taxes directly to Tenant.

 

(iii)          Tenant shall have the right to request Landlord to
bring proceedings contesting the validity or amount of any Real Estate Taxes
paid or payable by Tenant under the terms of this Lease; provided, however, if
following Tenant’s request Landlord elects not to contest the validity of any
Real Estate Taxes, Tenant shall have the right, upon written notice to
Landlord, to bring proceedings contesting the validity or amount of any Real
Estate Taxes and to prosecute, settle or discontinue same in Tenant’s name. If
Tenant elects to bring any such proceeding, Tenant shall proceed at its sole
cost and expense. Landlord agrees to cooperate with Tenant in any such
proceeding and upon Tenant’s request execute any reasonable documents required
in connection with such proceeding. The parties agree that if the contest
results in a reduction of taxes, the refund shall first be applied towards the
Tenant’s cost in bringing such proceeding and then such recovery shall be
appropriately pro-rate between the parties with respect to any recovery
applicable to the first or last year of the term. Neither party shall
discontinue any abatement proceedings begun by it without first giving the
other party notice of its intent to do so and reasonable opportunity to be
substituted in such proceedings.

 

4.             Additions, Alteration and Improvements.

 

(a)           All additions, alterations and improvements
(“Alterations”) to the Premises made during the Term shall be made by Tenant at
Tenant’s sole cost and expense. Interior nonstructural Alterations not
affecting the building systems may be made by Tenant without first obtaining
Landlord’s consent so long as such Alterations are not visible from the outside
of the Building and are for Tenant’s business purposes. All other Alterations
shall only be made after Tenant has obtained Landlord’s written consent
thereto, which consent Landlord agrees not to unreasonably withhold or delay.
In no event shall Tenant install any underground or above ground storage tanks
at the Premises, whether interior or exterior, and any such installation is
expressly prohibited hereunder and Landlord shall conclusively be deemed
reasonable in withholding its consent to any Alterations that include a storage
tank or otherwise can reasonably be expected to increase the risk of any
violation of any Environmental Law occurring at the Premises.

 

(b) 
Tenant has inspected the Premises and accepts same “as-is” without improvement
by Landlord.

 

(c)           Before commencing any Alterations to the Premises
requiring Landlord’s consent hereunder, the cost of which shall exceed One
Hundred Thousand and 00/100 ($100,000.00), Tenant shall deliver to Landlord a
payment and performance bond, letter of credit or other security acceptable to
Landlord to assure Landlord that the Alterations undertaken will be timely
completed in a good and workmanlike manner and that all contractors and vendors
will be paid in full. Such bond, letter of credit or other security shall be in
the amount of 125% of the reasonably anticipated cost of the Alterations
undertaken and shall otherwise be on customary terms satisfactory to Landlord.
In the event that the Alterations are not completed or one or more contractors
or vendors are not paid in full (or bonded for the full amount of any claim
subject to a bona fide dispute), Landlord shall have the right, in addition to
the other rights and remedies of Landlord for Tenant’s default, of completing
such Alterations and paying such contractors and vendors in full, by drawing
upon the bond, letter of credit or other security (or from any other source
Landlord elects at Landlord’s sole election) and to cause all contractors and
vendors to be paid, none of which shall cure the default by Tenant hereunder.
In no event shall Landlord be responsible for the payment of any contractor or
vendor of Tenant hereunder.

 

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(d)           Tenant shall not commence any Alterations without
first obtaining all necessary permits and approvals. Tenant shall give Landlord
prior written notice of any proposed Alterations, whether or not requiring the
consent of Landlord with copies of proposed plans and as-built plans upon
completion of any Alterations that affect the building systems or structure.
Tenant agrees to indemnify, defend and hold harmless Landlord from and against
any and all costs, expenses, claims, causes of action, damages and liabilities
of any type or nature whatsoever (including, but not limited to attorneys’ fees
and costs of litigation) arising out of or relating to the making of the
Alterations by Tenant (collectively “Losses), unless such Losses arise out of
or result from the negligence or willful misconduct of Landlord, its agents or
employees. Nothing herein contained shall be construed as constituting the
permission of Landlord for a mechanic or subcontractor to file a lien claim
against the Premises and Tenant agrees to secure the removal of any such lien
at Tenant’s sole cost and expense which a contractor or vendor purports to file
against the Premises by payment or otherwise pursuant to Laws. All Alterations
shall be effected in compliance with all applicable laws, ordinances, rules and
regulations of governmental bodies having or asserting jurisdiction over the
Premises.

 

5.             Tenant Covenants As To Condition of Premises, and
Compliance with Laws.

 

(a)           Except as provided in Paragraph 5(b) below, Tenant
shall, throughout the term of this Lease and at its sole cost and expense, maintain
the Premises in good condition and state of repair, including, but not limited
to, the sprinklers, mechanical, plumbing, electrical and HVAC systems servicing
the Premises or any part thereof (collectively, the “Building Systems”), and at
the end or certain expiration of the term hereof, shall deliver up the Premises
in the order and condition as same were in upon the Commencement Date, wear and
tear from reasonable use thereof, Landlord’s Repair Obligations (hereinafter
defined), and casualty excepted. Tenant agrees to make all repairs necessary to
maintain such condition. Tenant shall keep and maintain all exterior portions
of the Premises in a clean and orderly condition, free of accumulation of
rubbish and shall keep and maintain the parking areas, loading dock areas,
driveways and walkways free of snow and ice.

 

(b)           Landlord shall, at Landlord’s sole cost and expense
(except to the extent caused by the negligence or acts or omissions of Tenant),
throughout the term of this Lease, (i) to the extent necessary, repair and
replace the roof, and (ii) maintain and repair the structural portions of the
Premises, including, but not limited to the footings, exterior walls,
foundations and structural steel columns and girders (collectively “Landlord’s
Repair Obligations”). Tenant shall reimburse Landlord, within forty-five (45)
days after written notice of completion, for all costs and expenses incurred in
connection with any repairs to the structural portions of the Premises or roof
arising as a result of Tenant’s negligence or acts or omissions.

 

(c)           When used in any part of this Paragraph 5, the term
“repairs” shall include replacements when necessary to maintain the Premises in
the required condition. All repairs required to be made under any part of this
Paragraph 5 shall be at least equal in quality and usefulness to the Premises
as the item being repaired was on the Commencement Date.

 

(d)           Notwithstanding anything contained in this Lease to
the contrary, (i) in the event that the Premises or any of the equipment
affixed thereto or stored therein should be damaged, by any act or omission of
Tenant, or its contractor’s, licensees, agents, servants, visitors or employees
Tenant shall, upon demand, make all required repairs, including, but not
limited to interior, exterior and structural repairs and (ii) in the event that
the Premises or any of the equipment affixed thereto or stored therein should
be damaged, by any act or omission of Landlord, or its contractor’s,

 

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licensees, agents, servants, visitors or employees Landlord
shall, upon demand, make all required repairs, including, but not limited to
interior, exterior and structural repairs.

 

(e)           Tenant, at Tenant’s expense, shall promptly comply
with all laws, rules, regulations and ordinances, of all governmental
authorities or agencies having jurisdiction over the Premises (including,
without limitation, Environmental Laws), and of all insurance bodies
(including, without limitation, the Board of Fire Underwriters), at any time
duly issued or in force (collectively “Laws”), applicable to the Premises or
any part thereof or to Tenant’s use thereof. This obligation shall include the
obligation to make Alterations to the Premises, including, but not limited to interior,
exterior and structural improvements; provided, however, Tenant shall have no
obligation to a make any structural alterations to the Premises pursuant to
this Section except to the extent such structural alterations arise in
connection with Tenant’s specific use or manner or use of the Premises and not
general warehouse, distribution or office use. If such compliance requires the
making of exterior or structural alterations or repairs, Tenant shall not
commence such alterations or repairs unless and until Tenant has submitted
plans and specifications for such work to Landlord, and Tenant has obtained the
approval thereof from Landlord and, if required, from any mortgagee. Such
approval by Landlord and the mortgagee shall not be unreasonably withheld or
delayed.

 

6.             Tenant’s Property. All fixtures, equipment, improvements, alterations, installations (other
than trade fixtures and installations) which are attached to the Premises, and
any additions and appurtenances made by Tenant to the Premises shall become the
property of Landlord upon installation. Not later than the last day of the
Term, Tenant shall, at its expense, remove from the Premises all of its
personal property, trade fixtures and installations and such improvements as
Landlord elects to have removed. Tenant, at its sole cost and expense, shall
repair injury done by or in connection with the installation or removal of such
property, fixtures, installations and improvements. Any equipment, fixtures,
goods or other property of Tenant, not removed by Tenant upon the termination
of this Lease, or upon any quitting, vacating or abandonment of the Premises by
Tenant, or upon Tenant’s eviction, shall be considered as abandoned and
Landlord shall have the right, without any notice to Tenant, to sell or
otherwise dispose of the same, at the expense of Tenant, and shall not be
accountable to Tenant for any part of the proceeds of such sale, if any.
Landlord may have any such property stored at Tenant’s risk and expense.

 

7.             Various Negative Covenants by Tenant. Tenant agrees that it shall not, without
Landlord’s prior written consent which consent shall not be unreasonably
withheld, conditioned or delayed with respect to those matters set forth in
subsections (c) and (d) below:

 

(a)           Do anything in or near the Premises which will
increase the rate of fire insurance on the Premises;

 

(b)           Permit the accumulation of waste or refuse matter in
or near the Premises except in proper containers;

 

(c)           Directly or indirectly assign, sublet, mortgage,
hypothecate, pledge or encumber this Lease in whole or in part; or

 

(d)           Permit any signs, lettering or advertising matter to
be erected or attached to the Premises, except that Tenant may maintain the
signs currently located at the Premises.

 

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8.             Estoppel Certificates.

 

Tenant covenants and agrees that it will at any time and
from time to time, execute, acknowledge and deliver to Landlord, or to anyone
Landlord shall designate, an estoppel certificate in form reasonably acceptable
to the party requesting same relating to matters customarily included in
leasehold estoppel certificates within fifteen (15) days of receipt of the
Landlord’s request accompanied by such certificate. Landlord covenants and
agrees that it will at any time and from time to time, execute, acknowledge and
deliver to Tenant, or to anyone Tenant shall designate, an estoppel certificate
in form reasonably acceptable to the party requesting same relating to matters
customarily included in leasehold estoppel certificates within fifteen (15)
days of receipt of Tenant’s request accompanied by such certificate.

 

9.             Insurance.

 

(a)           Tenant shall, at Tenant’s sole cost and expense,
but, except to the extent prohibited by law with respect to workmen’s
compensation insurance, for the mutual benefit of Landlord and Tenant, maintain
or cause to be maintained (i)  “all risk”
coverage on the Premises and all improvements located thereon, together with
Tenant’s personal property, including, but not limited to, standard fire and
extended coverage insurance with vandalism and malicious mischief endorsements,
to the extent of their full replacement value without any deduction for
physical depreciation of the improvements on the Premises, with Landlord named
as loss payee, as its interest may appear, and with all proceeds to be paid to
Landlord for the restoration of the Premises in accordance with the provisions
of Paragraph 10 below. Such “full replacement cost” shall be determined at
Tenant’s sole cost and expense from time to time (but not more frequently than
once in any sixty (60) calendar months, except in the event of a remodeling of
the Premises by Tenant in which case such redetermination shall be made within
three (3) months following such remodeling) at the request of Landlord, by an
appraiser (which may be the appraisal department of Tenant’s insurance
carrier), engineer, architect or contractor designated by Tenant and approved
in writing by Landlord (such approval not to be unreasonably withheld). No
omission on the part of Landlord to request any such determination shall
relieve Tenant of any of its obligations under this Paragraph; (ii) commercial
general liability insurance, including but not limited to, premises, bodily
injury, personal injury and contractual liability, coverages for any negligent
act or omission on the part of Tenant or Tenant’s employees, contractors,
licensees, invitees, agents or visitors, on or about the Premises, including
such claims arising out of the construction of improvements on the Premises,
such insurance to afford protection to the limit of not less than Five Million
Dollars ($5,000,000.00) in respect to injury or death to any one person or to
any number of persons or property damage arising out of a single occurrence
naming Landlord and any mortgagee of Landlord of which Tenant has received
written notice, as an additional insured; provided, however, with respect to
commercial liability insurance maintained by Tenant’s contractors such
insurance shall afford protection to the limit of not less than Two Million
Dollars ($2,000,000.00) in respect to injury or death to any one person or to
any number of persons or property damage arising out of a single occurrence;
(iii) workmen’s compensation insurance covering all persons employed by Tenant
or employed in connection with the construction of any improvements by Tenant
and the operation of its business upon the Premises; and rental value insurance
in the amount of one year’s rent and estimated additional rent; Tenant shall
also carry insurance against such other hazards and in such amounts as may be
customarily carried by tenants, owners and operators of similar properties as
Landlord may reasonably require for its protection from time to time. In the
event Landlord, at any time during the term of the Lease, reasonably determines
that Tenant’s insurance coverage is inadequate, based upon the coverages being
required by landlords of comparable buildings in the general geographic area of
the Premises, Landlord shall have the right to require Tenant to increase its
insurance coverage. All such insurance shall be written

 

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by a New Jersey licensed insurance carrier rated at least A
15 as per Best’s Insurance Guide.

 

(b)           Prior to the Commencement Date, and at least ten
(10) days prior to the expiration date of any policy, Tenant shall furnish
evidence of such insurance and payment of premiums thereon to Landlord. Such
insurance shall be in form satisfactory to Landlord and without limitation, shall
provide that no cancellation or lapse thereof or change therein shall be
effective until (i) after ten (10) days’ written notice to Landlord at the
address specified in this Lease in the case of nonpayment of premium, or (b) in
all other cases, after thirty (30) days’ written notice to Landlord at the
address specified in this Lease. Tenant waives all rights of recovery against
Landlord for any insurable loss, damages, or injury to property or persons
regardless of whether or not the Tenant is insured against same.

 

(c)           During the term of this Lease, each party shall
maintain in effect in each insurance policy required under this Lease that
relates to property damage a waiver of subrogation in favor of the other party
from such party’s then-current insurance carriers, and shall at all times
furnish evidence of such currently effective waiver to the other party. Such
waiver shall be in a form reasonably satisfactory to the other party and
without limitation, shall provide that no cancellation or lapse thereof or
change therein shall be effective until after ten (10) days’ written notice to
the other party at the address, specified in this Lease.

 

(d)           Each insurance policy required to be maintained
under this Lease shall state that with respect to the interest of Landlord the
insurance maintained pursuant to each such policy shall not be invalidated by
any action or inaction of Tenant and shall insure Landlord regardless of any
breach or violation of any warranties, declarations, conditions or exclusions
by Tenant.

 

(e)           Each insurance policy required to be maintained
under this Lease shall state that all provisions of each such insurance policy,
except for the limits of liability, shall operate in the same manner as if a
separate policy had been issued to each person or entity insured thereunder.

 

(f)            Each insurance policy required to be maintained
under this Lease shall state that the insurance provided thereunder is primary
insurance without any right of contribution from any other insurance which may
be carried by or for the benefit of Landlord.

 

(g)           Each insurance policy required to be maintained
under this Lease shall recognize the indemnification set forth in Paragraph 11
of this Lease.

 

(h)           Failure of Tenant to maintain any of the insurance
required under this Lease or to cause to be provided in any insurance policy
the requirements set forth in this Paragraph 9, shall constitute a default
under this Lease without any notice being required by Landlord.

 

10.           Casualty and Insurance.

 

(a)           In the event of partial or total destruction of the
improvements to Premises by reason of fire or any other cause Tenant shall
immediately notify Landlord of same, assign all of its rights under the
insurance policies insuring the Premises to Landlord, as its interest may appear,
and pay to Landlord, as its interest may appear, following the final settlement
of all insurance claims, the amount of any deductible provided by such
insurance policy or policies and this Lease, excluding any insurance for
Tenant’s property. The provisions of this Paragraph shall survive the
expiration or sooner termination of this Lease.

 

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(b)           If the Premises is damaged or destroyed by fire,
explosion, the elements or otherwise so as to render the Premises wholly
untenantable or unfit for occupancy and same cannot be restored to
substantially the same condition they were in prior to such event of casualty
within one hundred eighty (180) days from the happening of such injury, by the
reasonable estimate of an independent architect or engineer mutually acceptable
to Landlord and Tenant, then, and in such case, the Term hereby created shall,
at the option of either the Landlord or Tenant, terminate upon the giving of
written notice to the other party. If a notice of termination is given, the
Term of this Lease shall terminate effective as of the date of such damage or
destruction, and the Tenant shall immediately surrender the Premises and all
the Tenant’s interest therein to the Landlord, and pay Rent to the time of such
damage or destruction, and the Landlord may re-enter and repossess the Premises
discharged from this Lease and may remove all parties therefrom.
Notwithstanding the foregoing, if damage to the Premises occurs during the last
two years of the Term or any Extension Term, which renders more than
twenty-five percent (25%) of the Premises untenantable, Landlord or Tenant may
elect to terminate this Lease by a thirty (30) day notice to the other party
given within ninety (90) days after the occurrence of such damage. In such case
this Lease shall terminate on the date specified in such notice.

 

(c)           Should the Premises be rendered untenantable and
unfit for occupancy, but yet be repairable within one hundred eighty (180) days
from the happening of said injury or in a longer period, but neither party
exercised its right to terminate this Lease as aforesaid, the Landlord shall
enter and repair the same in accordance with subparagraph (e) below, and the
Rent shall abate until such time as the Landlord makes such repairs so as to
render the Premises wholly tenantable.

 

(d)           If the Premises shall be so slightly injured as not
to be rendered untenantable and unfit for occupancy in whole or in part, the
Landlord shall repair the same, upon receipt of the insurance proceeds, with
reasonable promptness, so as to restore the Premises to the condition in which
they were immediately prior to such damage or destruction.

 

(e)           Notwithstanding anything contained herein to the
contrary, Landlord shall not be required to expend any funds for the
restoration of the Premises which are in excess of the insurance proceeds
recovered as a result of any such casualty.

 

(f)            This Paragraph 10 constitutes an express agreement
between the parties and shall govern in place of any statutory provisions
relating to the damage or destruction of leased improvements.

 

11.           Indemnification. (a)              Definition:  Within the meaning of this
Paragraph 11, “Claims” means any claims, suits, proceedings, actions, causes of
action, responsibility, liability, demands, judgments, and executions.

 

(b)           Except to the extent arising out of or resulting
from the negligence or willful misconduct of Landlord or its agents or
employees, Tenant hereby indemnifies and agrees to save harmless Landlord, and
any mortgagee from and against any and all Claims, which either (i) arise from
or are in connection with the Tenant’s (or any party claiming under Tenant),
possession, use, occupation, management, repair, maintenance or control of the
Premises, or any portion thereof; (ii) arise from or are in connection with any
act or omission of Tenant, or Tenant’s Agents; (iii) result from any default,
breach, violation or non-performance of this Lease or any provision therein by
Tenant; or (iv) result in injury to person or property or loss of life
sustained in or about the Premises. Tenant shall defend any actions, suits and
proceedings which may be brought against Landlord or mortgagee with respect to
the foregoing or in which they may be impleaded. Tenant shall pay, satisfy and discharge
any judgments, orders and decrees which may be recovered against Landlord or
mortgagee in connection with the foregoing.

 

9

 

12.           Non-Liability of Landlord. Landlord shall not be liable for (and Tenant shall
make no claim for) any property damage or personal injury which may be
sustained by Tenant or any other person, as a consequence of the failure,
breakage, leakage, inadequacy, defect or obstruction of the water, plumbing,
steam, sewer, waste or soil pipes, roof, drains, leaders, gutters, valleys,
downspouts, or the like or of the electrical, gas, power, conveyor,
refrigeration, sprinkler, air conditioning or heating systems, elevators or
hoisting equipment; or by reason of the elements; or resulting from the
carelessness, negligence or improper conduct on the part of Tenant or Tenant’s
agents, employees, guests, licensees, invitees, subtenants, assignees or
successors. Tenant shall give Landlord prompt written notice of the occurrence
of any events set forth in this Paragraph 12. Tenant shall indemnify and hold
harmless Landlord from any expense (including legal fees and costs), loss,
liability or damages suffered or incurred in connection with the matters
referred to in this Paragraph.

 

13.           Remedies and Termination Upon Tenant Default.

 

(a)           In the event that:

 

(1)           Tenant shall default in the payment of (i) any Fixed
Rent or (ii) any Additional Rent or other charge payable regularly hereunder by
Tenant to Landlord, on any date upon which the same becomes due, and such
default shall continue for five (5) days after receipt of written notice of
such failure to pay on the due date, provided however such notice shall not be
required more than twice in any twelve (12) month period; or

 

(2)           Tenant shall default in the payment of any
Additional Rent or any other charge payable hereunder which are not due and
payable hereunder on a regular basis, on any date upon which the same becomes
due, and such default shall continue for five (5) days after Landlord shall have
given to Tenant a written notice specifying such default; or

 

(3)           Tenant shall default in the due keeping, observing
or performing of any covenant, agreement, term, provision or condition of this
Lease on the part of Tenant to be kept, observed or performed (other than a
default of the character referred to in clauses (1) or (2) of this Paragraph
13(a)), and if such default shall continue and shall not be remedied by Tenant
within thirty (30) days after Landlord shall have given to Tenant a written notice
specifying the same; provided, however, in the case of a default which cannot
with due diligence be remedied by Tenant within a period of thirty (30) days,
if Tenant proceeds as promptly as may reasonably be possible after the giving
of such notice and with all due diligence to remedy the default and thereafter
to prosecute the remedying of such default with all due diligence, the period
of time after the giving of such notice within which to remedy the default
shall be extended for such period as may be necessary to remedy the same with
all due diligence; or

 

(4)           Should Tenant be evicted by summary proceedings or
otherwise;

 

then, Landlord may, in addition to any other remedies
herein contained, as may be permitted by Law, without being liable for prosecution
therefor, or for damages, re-enter the Premises and the same have and again
possess and enjoy; and as agent for Tenant or otherwise, re-let the Premises
and receive the rents therefor and apply the same, first to the payment of such
expenses, reasonable attorney fees and costs, as Landlord may have reasonably
incurred in re-entering and repossessing the same and in making such repairs
and alterations as may be necessary; and second to the payment of the rents and
charges due hereunder. Tenant shall remain liable for such rents as may be in
arrears and also the rents as may accrue subsequent to the re-entry by
Landlord, to the extent of the difference between the rents reserved hereunder
and the rents, if any,

 

10

 

received by Landlord during the remainder of the unexpired
term hereof, after deducting the aforementioned expenses, fees and costs; the
same to be paid as such deficiencies arise and are ascertained each month.
Landlord, at its option, at any time after such default, may require Tenant to
pay in a single lump sum payment a sum which represents the present value
(using a discount rate of 4% per annum) of the aggregate of the Fixed Rent
which would have been payable by Tenant for the period commencing at the time
Landlord demands such single lump sum payment, and ending on the originally
fixed Expiration Date of the Term.

 

(b)           Upon the occurrence of any of the contingencies set
forth in the preceding Paragraph 13(a), or should Tenant be adjudicated a
bankrupt, insolvent or placed in receivership, or should proceedings be
instituted by or against Tenant for bankruptcy, insolvency, receivership,
agreement of composition or assignment for the benefit of creditors, or if this
Lease or the estate of Tenant hereunder shall pass to another by virtue of the
death of Tenant or any court proceedings, writ of execution, levy, sale, or by
operation of law, Landlord may, if Landlord so elects, at any time thereafter,
terminate this Lease and the term hereof, upon giving to Tenant or to any
trustee, receiver, assignee or other person in charge of or acting as custodian
of the assets or property of Tenant, five (5) days notice in writing, of
Landlord’s intention so to do. Upon the giving of such notice, this Lease and
the term hereof shall end on the date fixed in such notice as if the said date
was the date originally fixed in this Lease for the expiration hereof; and
Landlord shall have the right to remove all person, goods, fixture and chattels
therefrom, by force or otherwise without liability for damages.

 

(c)           The parties expressly agree that, except to the
extent required by law, Landlord shall have no duty whatsoever to mitigate its
damages in the event of a default by Tenant.

 

14.           Remedies Cumulative; Non-Waiver By Landlord; Waiver
of Jury Trial. The various rights,
remedies, options and elections of Landlord, expressed herein, are cumulative,
and the failure of Landlord to enforce strict performance by Tenant of the
conditions and covenants of this Agreement to exercise any election or option
or to resort or have recourse to any remedy herein conferred or the acceptance
by Landlord of any installment of rent after any breach by Tenant, in any one
or more instances, shall not be construed or deemed to be a waiver or a
relinquishment for the future by Landlord of any such conditions and covenants,
options, elections or remedies, but the same shall continue in full force and
effect. Tenant waives trial by jury in any action or proceeding arising out of
this Lease.

 

15.           Services/Utilities. Landlord shall have no obligation to provide any services whatsoever to
the Premises. All such services shall be provided by Tenant at Tenant’s sole
cost and expense. Tenant shall obtain utilities and water directly from the
public utility companies supplying same to the Premises and Tenant shall pay
such providers directly, for such usage pursuant to the actual charges on bills
rendered therefore.

 

16.           Subordination. (a)                This Lease is subject and subordinate in all
respects to any underlying leases, ground leases, licenses or agreements, and
to all mortgages which may now be placed on or affect such leases, licenses or
agreements or the Land or the Premises and also to all renewals, modifications,
consolidations and extensions of such underlying leases, ground lease,
licenses, agreements, and mortgages. Although no instrument or act on the part
of Tenant shall be necessary to effectuate such subordination, Tenant shall,
nevertheless, execute and deliver such further instruments confirming such
subordination as may be desired by any holder of any such mortgage or by a
lessor, licensor or party to an agreement under any such underlying lease,
ground lease, license or agreement, respectively. If any underlying lease,
ground lease, license or agreement to which this agreement is subject and
subordinate terminates, or if any mortgage to which this lease is subordinate
is foreclosed, Tenant shall, on timely request, attorn to the holder of the
reversionary interest

 

11

 

or to the mortgagee in possession, as the case may be. Landlord represents
that as of the date of this Lease (i) Landlord holds fee simple title to the
Premises and has full authority to enter into this Lease, and (ii) there are no
mortgages or underlying leases, or ground leases affecting the Land or the
Premises.

 

(b)           This Lease and Tenant’s interest hereunder shall
also be subject and subordinate to any future “Superior Interest” (hereinafter
defined) provided Landlord shall obtain and deliver to Tenant, from any future
mortgagee, trustee, ground lessor or security deed holder (a “Superior
Interest”) a written subordination and non-disturbance agreement (provided
Tenant also executes the same) on such Superior Interest’s standard form;
provided such form is reasonably acceptable to Tenant and does not change the
terms of this Lease (other than deminimis changes), and such form provides that
so long as Tenant performs all of the terms, covenants and conditions of this
Lease within applicable notice and cure periods, and agrees to attorn to the
holder and beneficiary of the Superior Interest and the purchaser at a
foreclosure sale, Tenant’s rights under this Lease shall not be disturbed and
shall remain in full force and effect for the Term upon all of the terms and
conditions of this Lease, and Tenant shall not be joined by the holder of any
mortgage or deed of trust in any action or proceeding to foreclose thereunder.

 

17.           Landlord’s Cure of Tenant’s Default. If Tenant shall fail or refuse to comply with and
perform any conditions and covenants of this Lease and such failure continues
beyond any applicable notice and cure periods, Landlord may, if Landlord so
elects, carry out and perform such conditions and covenants, at the sole cost
and expense of Tenant, and the said cost and expense shall be payable by Tenant
to Landlord on demand, or at the option of Landlord shall be added to the
installment of rent due immediately thereafter, but in no case later than one
month after such demand, whichever occurs sooner, and shall be due and payable
as such. This remedy shall be in addition to such other remedies as Landlord
may have hereunder by reason of the breach of Tenant of any of the covenants
and conditions in this Lease.

 

18.           Notices.
Any notice, demand, statement or other communication which under the terms of
this Lease or under any statute or law must or may be given shall be given by
hand delivery to the respective parties as follows or by registered or
certified mail, return receipt requested, or by reputable private overnight
delivery service addressed to the respective parties as follows:

 

To
Landlord:                                                                                                                           At its address stated above, with a copy to:

 

Nicholas Racioppi, Jr., Esquire

Riker, Danzig, Scherer, Hyland & Perretti

One Speedwell Avenue

Headquarters Plaza

Morristown, New Jersey  07962-1981

 

To
Tenant:                                                                                                                                     At its address stated above, with a copy to:

 

Goodwin Procter LLP

Exchange Place

Boston, Massachusetts  02109

Attention:  F. Beirne Lovely, Jr., Esq.

 

Any such notice, demand, statement or other communication
shall be deemed to have been given or made upon hand delivery or when
deposited, postage paid, in the U.S. Mail, or delivered, charges prepaid or
charged to sender to a reputable private overnight delivery service, as the case
may be. Any of the above addresses may be changed by notice given as above
provided.

 

12

 

19.           Quiet Enjoyment. Landlord covenants that Tenant upon keeping and performing each and
every covenant, agreement, term, provision and condition herein contained on
the part and on behalf of Tenant to be kept and performed, shall quietly enjoy
the Premises without hindrance or molestation by Landlord or by any other
person lawfully claiming by, through or under the same subject to the
covenants, agreements, terms, provisions and conditions of this Lease and the
effect of the application of same.

 

20.           Intentionally Omitted.

 

21.           Inspection and Entry by Landlord.

 

(a)           Tenant agrees to permit Landlord and Landlord’s
agents, employees or other representatives to show the Premises to any lessor
under any underlying lease or ground lease or any mortgagee or any persons
wishing to rent or purchase the same, and Tenant agrees that during the last
year of the Term, as same may be extended, Landlord or Landlord’s agents,
employees or other representatives shall have the right to show the Premises to
any prospective tenant or to place notices on the front of the Premises or any
part thereof, offering the Premises for rent or for sale; and Tenant hereby
agrees to permit the same to remain thereon without hindrance or molestation.

 

(b)           Tenant agrees that Landlord and Landlord’s agents,
employees or other representatives, shall have the right to enter into and upon
the said premises or any part thereof, at all reasonable hours, for the purpose
of examining the same or reading meters, or performing maintenance or making
such repairs or alterations therein as may be necessary for the safety and
preservation thereof. Landlord agrees that it shall use commercially reasonable
efforts to minimize interference with the operation of Tenant’s business in the
exercise of its rights hereunder. This clause shall not be deemed to be a
covenant by Landlord nor be construed to create an obligation on the part of
Landlord to make such inspection or repairs.

 

22.           Brokerage. Tenant and Landlord warrant and represent to each other that neither has
dealt with any broker or brokers regarding the negotiation of the within Lease
Tenant and Landlord agree to be responsible for and to indemnify and save the
other harmless from and against any claim for a commission or other
compensation by any broker claiming to have negotiated with the indemnifying
party with respect to the Premises or to have called the said Premises to
Tenant’s attention or to have called Tenant to Landlord’s attention.

 

23.           Landlord’s Inability to Perform. This Lease and the obligation of Tenant to pay the
rent hereunder and to comply with the covenants and conditions hereof, shall
not be affected, curtailed, impaired or excused because of the Landlord’s
inability to supply any service or material called for herein, by reason of any
rule, order, regulation or preemption by any governmental entity, authority,
department, agency or subdivision or for any delay which may arise by reason of
negotiations for the adjustment of any fire or other casualty loss or because
of strikes or other labor trouble or for any cause beyond the control of the
Landlord.

 

24.           Condemnation. If the Premises leased herein shall be taken under eminent domain or
condemnation proceedings, or if suit or other action shall be instituted for
the taking or condemnation thereof, or if in lieu of any formal condemnation
proceedings or actions, Landlord shall grant an option to purchase and or shall
sell and convey the Premises thereof to any governmental taking authority, then
this Lease shall terminate, and the term hereof shall end as of the date of
such taking and Tenant shall have no claim or right to claim or be entitled to
any portion of any amount which may be awarded as damages or paid as the result
of such condemnation proceedings or paid as the purchase price for such option,
sale or conveyance in lieu of

 

13

 

formal condemnation proceedings; and all rights of Tenant
to damages, if any, are hereby assigned to Landlord, except that nothing herein
shall affect Tenant’s rights to make a separate claim for moving expenses or
trade fixtures provided same does not reduce Landlord’s award. In no event may
Tenant make any claim for its leasehold interest. If only a part of the
Premises shall be so taken, and if such taking shall be of a substantial part
of the Premises such that the Premises are unsuitable for the reasonable
conduct of Tenant’s business, this Lease may be terminated by either Landlord
or Tenant by its giving to the other, within 60 days after receipt of notice of
such vesting of title, and upon such election by either party this Lease shall
terminate, and the term hereof shall end as of the date of such taking. In the
event that this Lease is to be so terminated, Tenant agrees to execute and
deliver any instruments, at the expense of Landlord, as may be deemed necessary
or required to expedite any condemnation proceedings or to effectuate a proper
transfer of title to such governmental or other public authority, agency, body
or public utility seeking to take or acquire the Land, Building and Premises or
any portion thereof. Tenant covenants and agrees to vacate the Premises, remove
all Tenant’s personal property therefrom and deliver up peaceable possession
thereof to Landlord or to such other party designated by Landlord in the
aforementioned notice. Failure by Tenant to comply with any provision in this
clause shall subject Tenant to such costs, expenses, damages and losses
(including reasonable attorney’s fees and costs) as Landlord may reasonably
incur by reason of Tenant’s breach hereof. In the event that a partial taking
occurs but this Lease continues in full force and effect, then the Premises
shall be deemed to include only the portions not so taken. The Fixed Rent
hereunder shall be shall be equitably adjusted to reflect any such partial
taking. To the extent that no part of the Building on the Premises was taken, the
entire award shall be paid to Landlord and Tenant shall have no claim for any
part thereof. To the extent that a portion of the Building is taken and neither
Landlord nor Tenant have exercised its right to terminate this Lease, the
parties shall equitably apportion the award and Landlord shall make available
to Tenant that portion of the award equitably allocable to the taking of the
portion of the Building for the restoration and repair of the remainder of the
Building. To the extent such funds are not expended for such purpose, they
shall be the sole property of Landlord and Tenant shall make no claim therefor.

 

25.           Assignment and Subletting.

 

(a)           In the event that Tenant desires to (x) assign the
Lease or (y) sublease the whole or a portion of the Premises, to any other
party the terms and conditions of such assignment or sublease shall be
communicated to Landlord in writing not less than thirty (30) days prior to the
proposed effective date of any such assignment or sublease.

 

(b)           Tenant may assign this Lease or sublet the Premises,
subject to the Landlord’s prior written consent, which consent shall not be
unreasonably withheld, conditioned or delayed on the basis of the following
terms and conditions:

 

(i)            Tenant shall provide to Landlord the name and address
of the assignee or sublessee.

 

(ii)           The assignee shall assume, by written instrument,
all of the obligations of this Lease, and a copy of such assumption agreement
shall be furnished to Landlord at least ten (10) days prior to the effective
date of the assignment. The subtenant shall agree by written instrument not to
take any action that would cause a default under this Lease.

 

14

 

(iii)          (a) Tenant and each assignee shall be and remain
liable for the observance of all the covenants and provisions of this Lease,
including, but not limited to, the payment of rent and additional rent due
hereunder through the entire Term, as the same may be renewed, extended or
otherwise modified,  (b) each sublessee
shall, in accordance with the terms of the sublease, be and remain liable for
the observance of all applicable non-monetary covenants and provisions of this
Lease with respect to the subleased premises, through the entire term of this
Lease, as the same may be renewed, extended or otherwise modified and no
sublease shall permit any subtenant to violate any of the terms of this Lease.

 

(iv)          Tenant shall promptly pay to Landlord seventy-five
(75%) percent of the rent and any other consideration received for or in
connection with any assignment or sublease, however denominated, as and when
received, in excess of the rent required to be paid by Tenant hereunder after
first deducting any actual out-of-pocket expenses (including, but not limited
to brokerage fees, attorneys’ fees, and tenant fit-up costs) incurred by Tenant
in effecting such assignment or sublease.

 

(v)           In any event, the acceptance by Landlord of any rent
from any of the subtenants or the failure of Landlord to insist upon a strict
performance of any of the terms, conditions and covenants herein from any
assignee or subtenant shall not release Tenant herein, from any and all of the
obligations herein during and for the entire terms of this Lease.

 

(vi)          Tenant shall only assign or sublet the Premises to an
assignee or sublessee (1) whose financial status is acceptable to Landlord, at
Landlord’s reasonable discretion, and (2) whose use is acceptable to Landlord,
at Landlord’s sole, but commercially reasonable,  discretion.

 

(vii)         Landlord shall require Tenant to pay to Landlord the
amount of Seven Hundred Fifty and 00/100 ($750.00) Dollars as payment to cover
its handling charges for each request for consent to any assignment or sublet
prior to its consideration of the same.

 

 (viii) 
Tenant acknowledges that its sole remedy with respect to any assertion
that Landlord’s failure to consent to any assignment or sublet is unreasonable
shall be the remedy of specific performance and Tenant shall have no other
claim or cause of action against Landlord as a result of Landlord’s actions in
refusing to consent thereto.

 

(ix)           The assignment or sublease shall provide that there
shall be no further assignments and/or subletting without Landlord’s consent
which consent shall not be unreasonably withheld or delayed.

 

(c)           Notwithstanding anything contained in this Paragraph
25 to the contrary, Tenant shall have the right to assign this Lease or
sublease the whole of the Premises to an entity controlling, controlled by, or
under common control with Tenant or in connection with a merger or
consolidation of Tenant with another company or a sale of all or substantially
all of the assets of Tenant. Any assignment in connection with a transaction of
the nature permitted pursuant to the preceding sentence, shall not be subject
to the provisions of subsections, (a), b(iv) or b(vi)(1) hereof, but all other
provisions of this Paragraph shall apply.

 

26.           Environmental Laws.

 

(a)           Tenant, at its own expense and cost, shall promptly
comply with all applicable present and future environmental laws, rules,
regulations and executive orders, federal, state and local, pertaining to
environmental matters, as same may be amended or supplemented from time to
time, including, but not limited to, the Comprehensive Environmental Response,
Compensation and Liability Act,

 

15

 

(“CERCLA”), 42 USC ‘9601 et  seq.; the
Resource Conservation and Recovery Act, (“RCRA”), 42 USC ‘6901 et  seq.;
the Clean Air Act, 42 USC ‘7401 et  seq.; the Federal Water
Pollution Control Act (including but not limited to as amended by the Clean
Water Act), 33 USC ‘1251 et  seq.; the New Jersey Industrial Site
Recovery Act, N.J.S.A. 13:1K-6 et  seq. (“ISRA”); the New Jersey
Spill Compensation and Control Act, N.J.S.A. 58:10-23.11 et  seq. (“Spill
Act”); the New Jersey Water Pollution Control Act, N.J.S.A. 58:10A-1 et  seq.;
the New Jersey Air Pollution Control Act, N.J.S.A. 26:2C-1 et  seq.;
the New Jersey Solid Waste Management Act, N.J.S.A. 13:1E-1 et  seq.;
and the New Jersey Underground Storage of Hazardous Substances Act, 58:10A-21 et
seq. (collectively, “Environmental Laws”). Tenant, at its sole cost and
expense, shall obtain any permits or approvals required under any Environmental
Laws for Tenant’s operations at the Premises. Tenant represents to Landlord
that Tenant’s North American Industry Classification System Number (NAICS) as
used on Tenant’s Federal Tax Return is the NAICS Code listed in the Preamble of
this Lease. Tenant shall not conduct any operations that shall cause the Premises
to be deemed an “industrial establishment” as defined in ISRA. The terms
defined herein shall have such broader meaning as may at any time be included
in the Environmental Laws.

 

(b)           Tenant hereby agrees to execute such documents as
Landlord reasonably deems necessary and to make such applications as Landlord
reasonably requires to assure compliance with all Environmental Laws. Tenant
shall bear all costs and expenses incurred by Landlord associated with any
required compliance with Environmental Laws resulting from Tenant’s leasing,
use, operation, management, maintenance or repair of the Premises, or in any
way arising out of or connected to Tenant’s leasing, use, operation,
management, maintenance or repair of the Premises, including, but not limited to,
state agency fees, engineering fees, clean-up costs, filing fees and suretyship
expenses. As used in this Lease, compliance with Environmental Laws shall
include applications for determinations of nonapplicability by the appropriate
governmental authority. The foregoing undertaking shall survive the termination
or sooner expiration of this Lease and surrender of the Premises and shall also
survive sale, or lease or assignment of the Premises by Landlord. Tenant shall
immediately provide Landlord with copies of all correspondence, reports,
notices, orders, findings, declarations and other materials pertinent to
Tenant’s compliance with Environmental Laws and the requirements of any other
government body or agency, including the New Jersey Department of Environmental
Protection’s (“NJDEP”) under any Environmental Laws as they are issued or
received by the Tenant.

 

(c)           Tenant shall not generate, store, manufacture,
refine, transport, treat, dispose of, or otherwise permit to be present on or
about the Premises, any Hazardous Substances, except Hazardous Substances,
customarily and lawfully used in connection with the Permitted Use, provided,
however, that Tenant’s use and storage of any such Hazardous Substances is at
all times in strict compliance with all applicable laws, including, but not
limited to any Environmental Laws. As used herein, “Hazardous Substances” shall
be defined as any oil or petroleum products or derivatives thereof, PCBs,
explosive substances, asbestos, radioactive materials, and any other toxic or
contaminating materials included in the definitions of hazardous or toxic
substances contained in any Environmental Laws and any solid waste designated
as hazardous waste pursuant to N.J.A.C. 7:26-8, or as otherwise provided by
Federal or State law, and includes any “hazardous chemical,” “hazardous
substance” or similar term as defined in the Environmental Laws or in any other
present or future applicable federal, state or local law, rule or regulation
dealing with environmental protection.

 

(d)           Tenant agrees to indemnify and hold harmless the
Landlord and each mortgagee of the Premises from and against any and all
liabilities, damages, claims, losses, judgments, causes of action, costs and
expenses (including, but not limited to, the reasonable fees and expenses of
counsel, filing or review fees, environmental consultant fees and costs of any
assessment, investigation, sampling, remedial action or other cleanup) which
may be incurred by the Landlord or any such mortgagee or threatened against the
Landlord or such mortgagee, relating to or arising

 

16

 

out of any breach by Tenant, its employees, agents,
servants, licensees, invitees and representatives of this Paragraph, which
indemnification shall survive the expiration or sooner termination of this
Lease.

 

(e) 
In the event that Tenant performs or is responsible for a cleanup or
remedial action at the Premises in order to comply with Environmental Laws,
such cleanup or remedial action shall be conducted to achieve whatever soil
and/or groundwater cleanup levels may be required by the New Jersey Department
of Environmental Protection (“NJDEP”) or other governmental agency having
jurisdiction such that an unconditional No Further Action Letter or other equivalent
approval designating satisfactory completion of the cleanup will be issued by
the appropriate agency without the requirement to execute, record, implement or
maintain any engineering and/or institutional controls (as those terms are
defined by ISRA or any regulations promulgated thereunder) or seek alternative
soil remediation standards, alternate concentration limits and/or aquifer
reclassification. Institutional controls may include, without limitation,
structure, land and natural resource use restrictions, well restrictions,
declarations of environmental restriction or other forms of deed notice
regarding the presence of contamination, and establishment of groundwater
classification exception areas. Engineering controls may include, without limitation,
caps, covers, dikes, trenches, leachate collection systems, signs, fences and
access controls. Notwithstanding the foregoing, Lender may, in its sole and
absolute discretion and without any obligation to do so, agree to waive this
requirement, however such waiver must be in writing.

 

27.           Extension Option.

 

(a)           Provided that (i) an event of default is not
outstanding under this Lease, and (ii) Tenant is then the Tenant under this
Lease, and is then physically in occupancy of a portion of the Premises, then,
Tenant may elect to extend and renew the term of this Lease for three (3)
additional consecutive terms of five (5) years each by giving Landlord written
notice at least nine (9) months prior to the expiration of the initial term or
subsequent Extension Term, of this Lease, as the case may be, and as to which
time is of the essence. Upon and in the event of the giving of such notice in a
timely manner, the term of this Lease shall (unless said term shall sooner have
expired or terminated pursuant to any of the conditions of limitation or other
provisions of this Lease or pursuant to law) be deemed extended the “Extension
Term”). Such extension shall be subject to and upon all of the terms and
conditions of this Lease except that during the First Extension Term the Fixed
Rent payable hereunder shall be the CPI Increased Fixed Rent (as hereinafter
defined) and during Second and Third Extension Terms, as the case may be, the
Fixed Rent payable hereunder shall be the Fair Market Value. The Fair Market Value
shall be determined in accordance with the provisions of Exhibit B.

 

(b)           For purposes of calculating the CPI Increased Fixed
Rent, the following definitions shall apply:

 

(i)                            “Consumer Price Index” shall mean the New York -
Northeastern New Jersey Consumer Price Index for Urban Wage Earners and
Clerical Workers (1982-1984 = 100). In the event the Consumer Price Index shall
hereafter be converted to a different standard reference base or otherwise
revised, the determination of the CPI Increase shall be made with the use of
such conversion factor, formula or table for converting the Consumer Price
Index as may be published by an official source, or, if no official source
publishes such a conversion method, by any nationally recognized publisher of
statistical information selected by Landlord. In the event the Consumer Price
Index shall cease to be published, then, for the purposes hereof, there shall
be substituted for the Consumer Price Index such other index as Landlord shall
reasonably designate.

 

17

 

(ii)                           The “Base Index” shall mean the most recent Consumer
Price Index available to the public on the Commencement Date.

 

(iii)          The “Anniversary Month” shall mean the calendar
month for which the Base Index reports the Consumer Price Index. For example,
if the most recent Consumer Price Index available to the public on the
Commencement Date reports the Consumer Price Index for the month of March,
2006, then March shall be the Anniversary Month.

 

(iv)                          “Percentage Increase” shall mean the percentage
resulting from the fraction, the numerator of which shall be the Consumer Price
Index in the applicable Anniversary Month and the denominator of which shall be
the Base Index.

 

Prior to the commencement of the
First Extension Term, Landlord shall send to Tenant an index comparative
statement setting forth (i) the Consumer Price Index for the most recent
Anniversary Month; (ii) the Base Index; (iii) the Percentage Increase; and (iv)
the CPI Increased Fixed Rent found by multiplying the Percentage Increase by
the Annual Fixed Rent.

 

An example of this formula’s
application is as follows:

 

Assume the Base Index is 100.
Assume the Anniversary Month is March. Assume the Consumer Price Index for
March 2011, the Anniversary Month applicable to the calculation of the First
Extension Term Fixed Rent, is 103. In that case the Percentage Increase means
the percentage resulting from the fraction 103/100, or 103%, for a Percentage
Increase of 103%. The CPI Increased Fixed Rent is then calculated by
multiplying 103% by $276,090.75. Thus the Fixed Rent during the First Extension
Term is, in this example, the greater of the previous year’s Fixed Rent
($276,090.75) or $284,373.47.

 

(c)           Tenant shall have no further right to extend or
renew the term hereof for any period subsequent to the expiration of the
Extension Term.

 

(d)           If the annual Fixed Rent for any Extension Term
shall not be determined prior to the first day of the applicable Extension
Term, Tenant shall pay an interim Fixed Rent for the period commencing on the
first day of such Extension Term and ending on the last day of the month in
which such annual Fixed Rent is determined at the annual rate in effect
hereunder on the day preceding the first day of such Extension Term. When the
annual Fixed Rent for the Extension Term is determined, the Fixed Rent for such
period shall be recomputed upon the basis of such annual Fixed Rent so
determined and if such recomputed Fixed Rent for such period is in excess of
such interim Fixed Rent so paid for such period, Tenant shall promptly pay to
the Landlord an amount equal to such excess. If such recomputed Fixed Rent for
such period is less than such interim Fixed Rent so paid for such period,
Landlord shall promptly credit such amount against the next installment of
Fixed Rent.

 

(e)           When the annual Fixed Rent for the Extension Term
shall be established as herein provided, the Landlord and the Tenant shall
execute and deliver an amendment to this Lease specifying the Fixed Rent
payable for the Extension Term and any reference in this Lease to the term
hereof shall be deemed to include the Extension Term; provided however, that
the failure of the parties hereto to execute and deliver any such lease
amendment shall not affect the obligation of the Tenant to pay Fixed Rent at
the rental rate established hereunder.

 

18

 

28.           Parties Bound.

 

(a)           The covenants, agreements, terms, provisions and
conditions of this Lease shall bind and benefit the respective successors,
assigns and legal representatives of the parties hereto with the same effect as
if mentioned in each instance where a party hereto is named or referred to
except that no violation of the provisions of Paragraphs 7(c) or 25 hereof
shall operate to vest any rights in any successor, assignee or legal
representative of Tenant and that the provisions of this Paragraph 28 shall not
be construed as modifying the conditions contained in Paragraph 12 hereof.

 

(b)           Tenant acknowledges and agrees that if Landlord
shall be one or more individuals, or a joint venture, tenancy in common, firm,
or partnership, general or limited, or any combination of the above, there
shall be no personal liability on such individual(s) or on such joint venture,
tenancy in common, firm or partnership in respect of any of the covenants or
conditions of this Lease; rather, Tenant agrees to look solely to Landlord’s
estate and property in the Premises for the satisfaction of Tenant’s remedies
arising out of or related to this Lease.

 

(c)           The term “Landlord” as used in this Lease means only
the owner, or the mortgagee in possession, for the time being of the Premises
so that in the event of any sale or sales of the Land, Building, or the
Premises, the said 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, at any such sale of the
Land, Building or of the Premises, that the purchaser or the lessee of the same
has assumed and agreed to carry out any and all covenants and obligations of
Landlord hereunder.

 

29.           Miscellaneous.

 

(a)           This Lease contains the entire contract between the
parties. No representative, agent or employee of Landlord has been authorized
to make any representations or promises with reference to the leasing of the
Premises or to vary, alter or modify the terms hereof. No additions, changes or
modifications, renewals, or extensions hereof, shall be binding unless reduced
to writing and signed by Landlord and Tenant.

 

(b)           The terms, conditions, covenants and provisions of
this Lease shall be deemed to be severable. If any clause or provision herein
contained be adjudged to be invalid or unenforceable by a court of competent
jurisdiction or by operation of any applicable law, it shall not affect the
validity of any other clause or provision herein, but such other clauses or
provisions shall remain in full force and effect.

 

(c)           The paragraph headings in this Lease are for
convenience only and are not to be considered in construing the same.

 

(c)           If, in connection with obtaining financing with
respect to the Premises, a banking, insurance or other recognized institutional
lender shall request modifications in this Lease as a condition to such
financing, Tenant will not unreasonably withhold, condition, delay or defer its
consent thereto, provided that such modifications do not increase the
obligations of Tenant hereunder or materially adversely affect the leasehold
interest created or the conduct of Tenant’s business operations at the
Premises.

 

(d)           This Lease shall be governed by the laws of the
State where the Premises is located.

 

19

 

IN WITNESS WHEREOF, Landlord and
Tenant have duly executed this Lease as of the day and year first above
written.

 

	
  WITNESS:

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  THOMAS MINOR ASSOCIATES, LLC

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Henry G. Toolan

  	
   

  
	
   

  	
  Name: 

  	
  Henry G. Toolan

  	
   

  
	
   

  	
  Title: 

  	
  President

  	
   

  
									

 

	
  WITNESS:

  	
  TENANT:

  
	
   

  	
  FEDERAL MARKETING CORP d/b/a

  
	
   

  	
  CREATIVE HOMEOWNER

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ James F. Conway, III

  	
   

  
	
   

  	
  Name: 

  	
  James F. Conway, III

  	
   

  
	
   

  	
  Title: 

  	
  Chairman

  	
   

  
								

 

20

 

EXHIBIT A

 

PREMISES

 

BEING known and designated as Lots 1.20, 1.21 and 1.22 as
shown on a certain map entitled:  “Final
Subdivision Map, Wenko Park, Tax Map Lot 1, Block 1301, Sheet 13, Borough of
Upper Saddle River, Bergen County, New Jersey”, which map was filed in the
Bergen County Clerk’s Office on March 27, 1980, as Map No. 7846.

 

21

 

EXHIBIT B

 

DETERMINATION OF FAIR MARKET VALUE

 

The Fair Market Value of the Premises for purposes of this
Lease shall take into account the provisions of this Lease and shall be set
forth by Landlord in a notice to Tenant at least sixty (60) days prior to the
commencement of the fourth anniversary of the Commencement Date or the
applicable Extension Term, as the case may be (“Landlord’s Notice”). The Fair
Market Value set forth in such notice shall be binding upon both parties unless
Tenant shall notify Landlord of its objection within twenty (20) days after
receipt of such notice. In the event of such an objection, which is not
resolved within twenty (20) days thereafter, Tenant shall designate a licensed
real estate broker familiar with the Bergen County area to prepare an appraisal
of the Fair Market Value. Tenant’s designated broker shall then determine and
promptly report to both parties in writing the Fair Market Value of the
Premises, which report shall be binding upon both parties unless Landlord shall
object to same within twenty (20) days after receipt of said report. If
Landlord shall so object, both parties shall jointly appoint a separate licensed
real estate broker familiar with the Bergen County area who shall determine the
Fair Market Value of the Premises. Upon the receipt of such joint appraisal,
the Fair Market Value of the Premises for purposes of this Lease shall be
finally established as the determination that is neither the highest or the
lowest of the three (3) determinations, provided, however, that if two of the
determinations are equal, the Fair Market Value of the Premises established by
those two (2) determinations shall be finally established as the Fair Market
Value hereunder. Landlord and Tenant shall each pay for their own broker, and
the cost of the joint appraisal shall be shared equally by Landlord and Tenant.

 

22

 

CONFORMED
COPY

 

AGREEMENT OF LEASE

 

between

 

THOMAS MINOR ASSOCIATES, LLC

 

Landlord

 

and

 

FEDERAL MARKETING CORP d/b/a CREATIVE HOMEOWNER

 

Tenant

 

Premises:

24 Park Way

Upper Saddle River, New Jersey 07458Exhibit 10.1

 
AMENDMENT NO. 1
TO
ALLIANT TECHSYSTEMS INC.
AMENDED AND RESTATED
NON-EMPLOYEE DIRECTOR RESTRICTED STOCK PLAN
 
Amended and Restated as of December 12, 2005
 

Section 2.1(a) of the Plan is
hereby amended to include, after the last sentence of such section, the
following:

 

Notwithstanding the preceding sentence, as of
the date of the Annual Meeting held in 2006 (but only if prior to August 6,
2006), each Director elected or reelected to the Board at such Annual Meeting
shall be awarded shares of Restricted Stock with a market value of $75,000 as
determined by the closing market price of Stock on the date of such Annual
Meeting.

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