Document:

ex10-10

 

[NOVAVAX INC LETTERHEAD]

September 29, 1999

W.M. Rickman Construction Company

15215 Shady Grove Road

Rockville, MD 20850

Fax: 301 840 5992

Attention: Ross L. Englehart

Subject: One Taft Court

Dear Mr. Englehart:

This letter serves as notice that Novavax is exercising its option to extend the
term of the lease for the property at One Taft Court, Rockville, MD 20850,
pursuant to the conditions stated in Section 2 (TERMS) of the Lease Agreement
dated March 30, 1995 between W.M. Rickman Construction Co. and Dyncorp Advanced
Technology Services, Inc., which was assigned to Novavax, Inc. on August 10,
1999. If you have any questions, please do not hesitate to call.

Sincerely,

/s/ DONALD J. MACPHEE

Donald J. MacPhee

Vice President and Treasurer

cc: H. Montgomery Hougen, DynCorp

 

 

[W.M. RICKMAN CONSTRUCTION CO. LETTERHEAD]

September 1, 1999

DynCorp Advanced Technology Services, Inc.

Attention: H. Montgomery Hougen

2000 Edmund Halley Drive

Reston, Virginia 20191-3436

Dear Mr. Hougen:

W.M. Rickman Construction Company grants permission for DynCorp to assign the
Lease dated March 30, 1995, between W. M. Rickman Construction Co. and DynCorp
Advanced Technology Services, Inc., to Novavax, Inc., effective August 10, 1999.
The Premises is located on the second floor (11,743 square feet) at 1 Taft
Court, Rockville, Maryland.

Novavax, Inc., is obligated to abide by all terms, covenants and conditions of
the Lease.

DynCorp shall remain liable for the performance of all terms, covenants, and
conditions as stated in paragraph 19 “Assignment or Subletting” of the Lease.

Sincerely,

/s/ ROSS L. ENGLEHART

Ross L. Englehart

Director of Facilities

cc:  Donald J. MacPhee, CFO

       Novavax

 

 

LEASE AGREEMENT

          THIS
LEASE AGREEMENT, made this 30 day of March 1995, by and between W.M.
RICKMAN
CONSTRUCTION CO., hereinafter called “LANDLORD” and DYNCORP ADVANCED TECHNOLOGY
SERVICES, INC., a Virginia corporation, hereinafter called “TENANT”.

WITNESSETH

	1.	 	LEASED PREMISES
	 
	 	 	LANDLORD hereby demises unto tenant, and TENANT hereby leases from
LANDLORD for the terms and upon the conditions set forth in this Lease
11,743 square feet of space in the building located at 1 Taft Court,
Rockville, MD 20850, (hereinafter referred to as “BUILDING”), as
laboratory facilities, all as set forth on Exhibit A, hereto attached,
said space being referred to as “PREMISES”.
	 
	2.	 	TERM
	 
	 	 	The term of this lease shall
be for a period of five years, commencing
on the 1st day of April, 1995, and terminating on the 31st day of
March,
2000 with an option for an additional five years at the same terms and
conditions in this lease, provided that TENANT shall have given the
LANDLORD written notice of TENANT’s intention to do so six (6) months prior
to the expiration of this lease and that the Tenant is not in default
of the Lease.
	 
	3.	 	RENT
	 
	 	 	The TENANT shall pay to the LANDLORD an annual rental (herein called
“minimum rent”) in the amount of One Hundred fifty eight thousand five
hundred thirty & 50/100 DOLLARS ($158,530.50), subject to adjustment
as hereinafter set forth, payable without deduction or set off in equal
monthly installments of Thirteen thousand two hundred ten & 88/100
DOLLARS ($13,210.88) per month in advance, the first installment of which
is due and payable April 1,1995 and all subsequent installments due
and payable on the 1st day of each calendar month hereafter
until the total rent provided for herein is paid. No payment by TENANT
or receipt of LANDLORD of a lesser amount than a monthly installment of
rent herein stipulated shall be deemed to be other than on account of
such stipulated rent, nor shall any endorsement or statement on any check
or any letter accompanying any check or payment as rent be deemed an
accord and satisfaction, and LANDLORD may accept such check for payment
without prejudice to LANDLORD’s right to recover the balance of such
rent or pursue any other remedy provided for in this lease.
	 
	4.	 	ADJUSTMENT OF MINIMUM RENT
	 
	 	 	The minimum rent shall be adjusted at the end of each year during the
term hereof by a 3% increase over the rent then being paid. There also
shall be no additional pass-throughs of increases in operating expenses
except as specifically referenced herein.
	 
	5.	 	REAL ESTATE TAXES
	 
	 	 	In the event the real estate taxes levied or assessed against the land
and building of which the premises are a part in future tax years are
greater than the real estate taxes for the base tax year, the TENANT,
shall pay within thirty

PAGE 1

 

	 	 	(30) days after submission of the bill to TENANT for the increase in
real estate taxes, as additional rent a proportionate share of such
increases, which proportionate share shall be computed at 22.08% of the
increase in taxes, but shall exclude any fine, penalty, or interest
charge for late or non-payment of taxes by LANDLORD. The base tax year
shall be July 1, 1994 to June 30, 1995.
	 
	 	 	In the event that LANDLORD’s contest or appeal of the Real Estate Taxes
and/or assessment regarding the building of which the Premises form a
part shall result in a reduction or refund of Real Estate Taxes, TENANT
shall receive a proportionate share, as defined in this section of said
refund for taxes TENANT has paid, or in the case of a tax reduction
before payment by TENANT, TENANT shall be obligated only to pay its
share of the reduced amount. LANDLORD shall provide TENANT with copies
of all Real Estate tax bills and copies, in reasonable detail, of
LANDLORD’s computations showing TENANT’s proportionate share. LANDLORD
shall be under no obligation to appeal any proposed re-assessment of the
land or building.
	 
	6.	 	UTILITIES
	 
	 	 	TENANT shall be responsible for the payment of all utilities used or
consumed by the TENANT in and upon the Premises. Electric is to be
separately metered. Water is to be either separately metered or an
equitable allocation be made between the tenants based on the quantity
of water consumed. In the event any utility service to the premises
shall be interrupted for a period of more than two (2) days due to the
negligence or willful misconduct of LANDLORD, its agents or servants,
then the minimum rent shall abate from the interruption of such services
until such services are fully restored.
	 
	7.	 	EXCLUSIVE USE
	 
	 	 	TENANT shall have the right to use the demised premises for the
operation of offices and laboratories consistent with TENANT’s business
and for no other purpose, except as approved by the LANDLORD in advance
in writing, such approval not to be unreasonably withheld.
	 
	8.	 	LATE CHARGE
	 
	 	 	If any installment of rent accruing hereunder or any other sums payable
hereunder shall not be paid within Fifteen (15) days after written
notice to TENANT, such installment and other sums shall be increased
without affecting the LANDLORD’s other rights under this Lease, by a
late charge of five (5%) percent of the delinquent installment.
Anything contained herein to the contrary notwithstanding, LANDLORD
shall waive the late charge set forth herein of for the first two (2)
late payments during each lease year of the term of this Lease, provided
that such payments shall be made with 10 days of written notice to
TENANT to such lateness.
	 
	9.	 	REPAIRS AND MAINTENANCE
	 
	 	 	LANDLORD shall be responsible for all structural repairs, including
repairs to the roof and load-bearing walls of the building, and for
maintaining the parking area. The LANDLORD shall be responsible for
walkways, and all common areas within the building. The TENANT shall
be responsible for the maintenance and repair of the Premises and all
fixtures, appliances and equipment therein, including, but not limited
to, the Heating and Air Conditioning system. LANDLORD will pay for
major Heating and Air Conditioning component replacement and all repairs
to the heating and air

PAGE 2

 

	 	 	conditioning system in excess of Two Hundred Fifty Dollars ($250.00) per
occurrence.
	 
	 	 	TENANT shall also provide its own char service. LANDLORD will repair and replace
any glass breakage, provided it is not the result of the TENANT’s willful or
negligent act.
	 
	10.	 	LANDLORD’S WORK PRIOR TO COMMENCEMENT OF TERM
	 
		 	LANDLORD shall make the
following improvements to the Premises prior to the commencement of the
term of the Lease.
	 
	 	 	     None
	 
	11.	 	TENANT ALTERATIONS
	 
	 	 	The Landlord will supply the Tenant with an allowance of up to $30,000
for renovations and buildout of the Premises. The Tenant may hire the
licensed contractor of his choice, and a draw schedule will be
determined between the Tenant and the Landlord. Any unused portion of this
allowance will be returned to the Landlord. All building materials must
meet the specifications of the Landlord. The Tenant (and / or
contractor) will be responsible for obtaining building & occupancy
permits.
	 
	 	 	All alterations, improvements, or additions to the demised premises to
be made by TENANT shall be subject to the written consent of the
LANDLORD, which consent shall not be unreasonably withheld, provided
such alterations and improvements do not weaken the structural integrity
of the building or detract from its dignity and/or uniformity. All
alterations and improvements and/or additions made by TENANT shall
remain upon the premises at the expiration or earlier termination of
this Lease and shall become the property of the LANDLORD, unless
LANDLORD shall, at the time of approval of the alteration, provide
written notice to TENANT to remove the same, in which event TENANT shall
remove such alterations, improvements and/or additions, and restore the
premises to the same good order and condition in which it was at the
commencement of this Lease, reasonable wear and tear and unavoidable
casualty excepted. Should TENANT fail to do so, LANDLORD may do so,
collecting at LANDLORD’s option, the reasonable cost and expense thereof
from TENANT as additional rent.
	 
	12.	 	TRADE FIXTURES
	 
	 	 	All trade fixtures, telephone equipment, and apparatus installed by
TENANT in the leased premises shall remain the property of TENANT
and shall be removed at the expiration or earlier termination of this
lease, and provided further that in the event of such removal, TENANT
shall promptly restore the premises to their good order and condition.
Any such trade fixture not removed prior to such termination shall
become the property of the LANDLORD.
	 
	13.	 	HAZARDOUS STORAGE
	 
	 	 	TENANT shall be permitted to store hazardous materials on the premises,
however, any such storage and use of such materials shall comply with
all Federal, State, County and City regulations relative to such use and
storage of said materials. Any hazardous materials stored or used on the
premises must not, in any way, prejudice the insurance of the premises,
or increase the fire hazards to a greater extent than necessarily
incident to the business for which

PAGE 3

 

 

	 	 	the premises are leased, and all such materials must be completely
removed upon expiration of this lease.
	 
	14.	 	SIGNS
	 
	 	 	TENANT may display appropriate signs inside the building but such signs
shall be subject to the written approval of the LANDLORD, which will not
unreasonably be withheld, and said signs shall be in full conformance
with any applicable regulations or ordinances of local governmental
authorities having jurisdiction.
	 
	15.	 	QUIET ENJOYMENT
	 
	 	 	LANDLORD covenants that, upon payment of the rent herein provided and
performance by the TENANT of all other covenants herein contained,
TENANT shall and may peaceably and quietly have, hold and enjoy the
premises for the term hereof and options.
	 
	16.	 	SURRENDER OF PREMISES
	 
	 	 	Upon the expiration or termination of this Lease, TENANT shall quit and
surrender the premises to the LANDLORD broom clean and shall remove all
of its property therefrom. The obligation of this paragraph shall
survive the termination of the Lease.
	 
	17.	 	FIRE AND LIABILITY INSURANCE
	 
	 	 	TENANT covenants and agrees to maintain and carry, at all times during
the term of this Lease, in companies qualified and authorized to
transact business in the State of Maryland, extended coverage in the
amount of $500,000.00 per person, $1,000,000.00 per occurrence and
$100,000.00 for damage to property on the Premises.
	 
	 	 	TENANT shall indemnify and save harmless the LANDLORD from any and all
liability, damage, expense, cause of action, or claims arising out of
injury to persons or to property on the Premises, except for the
negligence or willful misconduct of LANDLORD, its agents, employees, or
servants. TENANT shall maintain at all times during the term of this
lease, in companies qualified and authorized to transact business in the
State of Maryland, public liability insurance with limits in same
coverage as above.
	 
	 	 	
TENANT shall furnish LANDLORD with satisfactory proof that the
insurance herein provided for is at all times in full force and
effect.
	 
	18.	 	DAMAGE BY FIRE
	 
	 	 	If the premises shall be partially damaged by fire, casualty, or the
elements, but are not rendered unrentable, in TENANT’s reasonable
business judgement, in whole or in part, the LANDLORD shall promptly, at
his expense, cause such damage to be repaired and the rent shall not be
abated. If by reason of such occurrence the premises shall be rendered
wholly or partially unfit for occupancy for the uses contemplated
hereunder, LANDLORD shall promptly, at his own expense, cause the
damage to be repaired, and the rent meanwhile shall be abated
proportionately as to the proportion of the premises rendered unfit. If
the building, or common areas appurtenant thereto, shall be rendered
wholly unfit for the occupancy or for the use contemplated hereunder, in
TENANT’s reasonable business judgement, by reason of such occurrence,
whether the premises have been damaged or not, and if such damage in the
opinion of the LANDLORD cannot be restored to tenantable occupancy
within

PAGE 4

 

 

	 	 	sixty days of the date of occurrence, either the LANDLORD or TENANT may
terminate this Lease on thirty (30) days written notice to the
other. In
the event LANDLORD determines that the damage can be repaired to
tenantable occupancy within sixty (60) days, but fails for any
reason including reasons beyond the control of LANDLORD to commence
such repairs within 30 days and complete them within 60 days, the
TENANT may terminate this lease upon 30 days notice to the
LANDLORD. In
the event the Premises are rendered wholly untenable during the last two
years of the term hereof, TENANT may terminate this lease upon thirty
(30) days notice to the LANDLORD.
	 
	19.	 	ASSIGNMENT OR SUBLETTING
	 
	 	 	TENANT agrees not to assign, mortgage, pledge or encumber this Lease, in
whole or in part, but may sublet the whole or any part of the demised
premises, and permit the use of the whole or any part of the demised
premises by a license or concessionaire, by first obtaining the written
consent of the LANDLORD, which shall not be unreasonably withheld or
delayed. TENANT agrees that, in the event of any such assignment,
subletting, licensing or granting of a concession the TENANT shall
nevertheless remain liable for the performance of all terms, covenants,
and conditions of this lease.
	 
	20.	 	SUBORDINATION
	 
	 	 	This Lease shall be subject to and subordinate at all times to the lien
of any mortgage and/or deeds of trust and all land leases now or
hereafter made on any portion of the demised Premises, and to all
advances thereunder, provided the mortgagee or trustee named in said
mortgage or deed of trust shall agree to recognize this Lease Agreement
and agrees, in the event of foreclosure, not to disturb the TENANT’s
possession hereunder, provided TENANT has not committed any event of
default as to which the applicable cure period has not expired under the
Lease Agreement. This subordination shall be self-operative and no
further intrusions of subordination shall be required.
	 
	21.	 	ATTORNMENT
	 
	 	 	If any proceedings are
commenced to foreclose any mortgage or deed of
trust encumbering the Premises, TENANT agrees to attorn the purchaser at
the foreclosure sale, if required to do so by any such purchasers, and
to recognize such purchaser as the LANDLORD under this lease, provided
purchaser shall agree that TENANT’s rights hereunder shall not be
disturbed so long as TENANT has not committed any event of default as to
which the applicable cure period has not expired.
	 
	22.	 	CONDEMNATION

	 	(a)	 	If the whole of the demised
Premises shall be taken by any
governmental or quasi-governmental authority under the power of
condemnation, eminent domain or expropriation, or in the event of
conveyance in lieu thereof, the Lease shall terminate as of
the day possession shall be taken by the governmental authority
and the entire award shall be the property of the LANDLORD,
except for the value of any improvements, alterations or
addition made to the premises at TENANT’s sole cost and expense,
including but not limited to, fixtures or equipment installed by
TENANT. TENANT shall have the right to claim and recover from
the condemning authority such compensation as may be separately
awarded or recoverable by TENANT’s business by reason of the
condemnation and for or on account of any cost or loss to which
TENANT might be

PAGE 5

 

	 	 	 	incur for moving expenses, including but not limited to
TENANT’s fixtures, equipment and furnishings.
	 
	 	(b)	 	In the event there is any taking by governmental or
quasi-governmental authority of a portion of the demised
Premises, or the building of which the premises form a part of
the common area appurtenant thereto, which does not seriously
and adversely affect the ability of the TENANT to conduct to
its business on the premises, the lease shall remain in full force
and effect and TENANT’s rent shall be abated in proportion to
the diminution in value of the premises.
	 
	 	(c)	 	In the event of any such taking or conveyance of the Premises or
the Building of which the Premises form a part or the common
areas appurtenant thereto, or any portion thereof which shall
render the Premises wholly unfit for the occupancy of TENANT or
the uses contemplated hereunder in TENANT’s reasonable business
judgement, TENANT may terminate this lease upon thirty (30) days
written notice to LANDLORD.
	 
	 	(d)	 	In the event of any such taking or conveyance of the demised
Premises, or the building of which the Premises form a part of
the common area appurtenant thereto, or any portion thereof,
TENANT shall pay rent to the day when possession thereof shall
be taken by the governmental authority with an appropriate
refund by LANDLORD of such rent as may have been paid in advance
for a period subsequent to such date. If this Lease shall
continue in effect as to any portion of the demised Premises not
so taken or conveyed, the rent shall be reduced to an amount
computed according to the floor space remaining. If this Lease
shall continue, LANDLORD, at its expense, but only to the extent
of any equitable proportion of the award or to other
compensation for the portion taken or conveyed of the improved
portion of the Premises and consequential damages to the
remainder hereof not taken (excluding any award or other
compensation for the land), shall make all necessary repair or
alterations so as to constitute the remaining demised premises a
complete architectural and tenantable unit. In the the event
that LANDLORD’s repairs and alterations to the premises, or to
the building of which the Premises form a part, or to the common
area appurtenant thereto, do not restore the Premises to a condition
fit for the occupancy of or for the uses contemplated hereunder in
TENANT’s reasonable business judgement, TENANT may terminate
this lease upon thirty (30) days written notice to LANDLORD.
	 
	 	(e)	 	TENANT shall be entitled to such award as may be given to it by
the condemning authority for the value of its fixtures and
equipment (if separate awards are given) or if only one award is
given by the condemning authority for all interests, said award
shall be apportioned between the parties as their respective
interest shall appear. In the event LANDLORD and TENANT are
unable to agree as to the amount of rental reduction which may
be required under sub-paragraphs b and c, above, or the
apportionment of any award made by the condemning authority,
such matter shall be submitted to arbitration under the rules of
the American Arbitration Association then in effect.

	25.	 	EVENTS OF DEFAULT
	 
	 	 	The occurrence of any of the following shall constitute an event of
default hereunder:

PAGE 6

 

	 	(a)	 	Failure of TENANT to pay installment of rent hereunder within
ten (10) days after receipt of written notice, or within twenty
(20) days after receipt of written notice any other sum herein
required to be paid by TENANT.
	 
	 	(b)	 	TENANT’s failure to perform any other covenant or condition of
this Lease within thirty (30) days after receipt of written
notice and demand, unless the failure is of such a character as
to require more than thirty (30) days to cure in which event
TENANT’s failure to proceed diligently to cure such failure
shall constitute an event of default.

24.     LANDLORD’S REMEDIES

		
	 	Upon the occurrence of any event of default, LANDLORD may, at LANDLORD’s
sole option, exercise any or all of the following remedies, together
with any such other remedies as may be available to LANDLORD at law or
in equity;

	 	(a)	 	LANDLORD may terminate this Lease by giving TENANT written
notice of the election to do so, as of a specified date not less
than thirty (30) days after the date of the giving of such
notice and this Lease shall then expire on the date so specified
and LANDLORD shall then be entitled to immediately regain
possession of the demised premises as if the date had been
originally fixed as the expiration date of the term of this
Lease. LANDLORD may then re-enter upon the leased premises
either with or without due process of law and remove all persons
therefrom, the statutory notice to quit or any other notice to
quit being hereby expressly waived by TENANT. TENANT expressly
agrees that the exercise by LANDLORD of the right of re-entry
shall not be a bar to or prejudice in any the other legal
remedies available to LANDLORD. In that event, LANDLORD shall be
entitled to recover from TENANT as and for liquidated damages an
amount equal to the rent and additional rent reserved in this
Lease less any and all amounts received by LANDLORD from the
rental of the premises to another tenant. Any recovery by the
LANDLORD shall be limited to the rent hereunder (plus any costs
incurred in re-letting) less any rent actually paid by the new
tenant.
	 
	 	(b)	 	No termination of this lease nor any taking or recovery of
possession of the demised premises shall deprive LANDLORD of any
of his remedies or actions against TENANT for past or future
rent, nor shall the bringing of any action for rent or breach of
covenant, or the resort to any other remedy herein provided for
the recovery of rent, be construed as a waiver of the right to
obtain possession of the premises.
	 
	 	(c)	 	In addition to any damages becoming due under subparagraph (a)
hereof, LANDLORD shall be entitled to recovery from TENANT and
TENANT shall pay to LANDLORD an amount equal to all expenses, if
any, incurred by the LANDLORD in recovering possession of the
demised premises, and all reasonable costs and charges for the
care of said premises while vacant, which damages shall be due
and payable by TENANT to LANDLORD at such time or times as such
expenses are incurred by the LANDLORD.
	 
	 	(d)	 	In the event of a default or threatened default by TENANT or any
of the terms or conditions of this Lease, LANDLORD shall have
the right of injunction and the right to invoke any remedy
allowed by law or in equity as if no specific remedies of
LANDLORD were set forth in this Lease.

PAGE 7

 

	 	(e)	 	It is further provided that if, under the provisions of this
lease, default be made and a compromise and settlement shall be
had thereupon, it shall not constitute a waiver of any covenant
herein contained, nor of the Lease itself, and it is hereby
specifically agreed that this Lease shall not merge in any
judgement had upon the same if compromise or settlement be made
upon said judgement prior to termination of TENANT’s possession,
the lease in such event to continue by the payment of rent
herein reserved, and the further performance of the covenants
herein contained on the part of TENANT.

25.     RIGHTS OF LANDLORD

		
	 	LANDLORD reserves the following rights with respect to the demised
premises:

	 	(a)	 	During normal business hours, upon 24 hours notice, by them or
their duly authorized agents, to go upon and inspect the demised
premises and every part thereof, and at LANDLORD’s option, to
make repairs, alterations and additions to the demised premises
or the building of which the demised premises are a part,
provided there is no interference with TENANT’s occupancy. An
Agent of the TENANT may be present for inspection, if required
by TENANT.
	 
	 	(b)	 	To display after notice from either party of intention to
terminate this Lease, a “For Rent” sign, and all of said signs
which shall be placed upon such part of the demised premises as
LANDLORD shall require, except on display windows or doors
leading into the demised premises. Prospective purchasers or
tenants authorized by LANDLORD may inspect the premises during
normal business hours following adequate notice to TENANT.
	 
	 	(c)	 	To install or place upon, or fix to, the roof and exterior walls
of the demised premise, equipment, signs, displays, antennae,
and any other object or structure of any kind, providing the
same shall not materially impair the structural integrity of the
building or interfere with TENANT’s occupancy.

26.     HOLDING OVER

		
	 	If TENANT holds possession of the premises after the termination of this
Lease or any renewal or extension thereof, TENANT shall become a TENANT
from month to month at 125% of the current escalated rental rate.

27.     WAIVER OF CLAIMS

		
	 	Except as may result from their negligence, LANDLORD and LANDLORD’s
agents, employees and contractors shall not be liable for, and TENANT
hereby releases all claims for damages to persons or property sustained
by TENANT or any person claiming through TENANT resulting from any fire,
accident, occurrence to condition in or upon the demised premises or
building of which they shall be part, including but not limited to such
claims for damage resulting from (1) any defect in or failure of
plumbing, heating or air-conditioning equipment, electric wiring or
installation thereof, water pipes, stairs, railings or walks; (2) any
equipment of apparatus becoming out of repair; (3) the bursting, leaking
or running of any tank, washstand, water closet, water pipe, drain or
any other pipe or tank in, upon or about such building or premises; (4)
the backing up of any sewer pipe or downspout; (5) the escape of steam
or hot water; (6) water, snow or ice being upon or coming through the
roof of any other place upon or near such building or premises or
otherwise;

PAGE 8

 

	 	 	(7) the falling of any fixtures, plaster or stucco; (8)
broken glass; and (9) any act or omission of occupants
of adjoining or contiguous property of buildings.
	 
	28.	 	NOTICE
	 
	 	 	All notices required under this Lease shall be given in
writing and shall be deemed to be properly serviced if
sent by certified or registered United States Mail,
postage prepaid, as follows:

	 	 	 
	If to the LANDLORD:	 	
W.M. RICKMAN CONSTRUCTION CO.
	 	 	
15215 SHADY GROVE ROAD
	 	 	
ROCKVILLE, MD 20850
	 
	If to the TENANT:	 	
DynCorp Advanced Technology Services, Inc.
	 	 	
1 Taft Court
	 	 	
Rockville, Maryland 20850

	 	 	or to such other address as either may have designated
from time to time by written notice to the other. The
date of service of such notices shall be the date such
notices are deposited in any United States Post Office.
	 
	29.	 	COVENANTS OF TENANT
	 
	 	 	TENANT covenants and agrees:

	 	(a)	 	To give to LANDLORD prompt written notice of any
accident, fire or damage occurring on or to the
demised premises.
	 
	 	(b)	 	To keep thermostat in the premises set at a
temperature sufficient to prevent freezing of
water pipes, fixtures and HVAC units.
	 
	 	(c)	 	To keep the demised premises clean, orderly,
sanitary, and free from all objectionable odors
and from insects, vermin and other pests.
	 
	 	(d)	 	To comply with the requirements of the State,
Federal and County statutes, ordinances, and
regulations applicable to TENANT and its use of
the demised premises, and to save LANDLORD
harmless from penalties, fines, costs, and
expenses resulting from failure to do so,
provided TENANT shall not be obligated to make
structural repairs or alterations to so comply.
	 
	 	(e)	 	TENANT shall promptly pay all contractors,
material and men it engages to perform work and
provide materials for construction work on the
premises so as to minimize the possibility of a
lien attaching to the premises, and should any
such lien be made or filed, TENANT shall cause
the same to be discharged and released of record
by bond or otherwise within 10 days of receipt
of written request from LANDLORD.

	30.	 	LANDLORD’S RIGHT TO ALTER SITE PLAN
	 
	 	 	LANDLORD shall, from time to time, have the right to
alter or modify the site plan of the building and to
rearrange the driveways and parking areas, as well as
the entrance and exits to the premises, such alteration
to be subject to TENANT approval.

PAGE 9

 

	31.	 	PARKING SPACES

	 
		 	Landlord agrees to furnish 3 1/3 unreserved parking spaces per thousand
square feet of space occupied by the TENANT.
	 
	32.	 	ENTIRE AGREEMENT
	 
		 	This Lease contains the entire agreement of the parties. There are no oral
agreements existing between them.
	 
	33.	 	SUCCESSORS AND ASSIGNS
	 
		 	This Lease, and the covenants
and conditions herein contained shall insure to the benefit of and be
binding upon the LANDLORD, his heirs and assigns, and shall insure in
the benefit of and be binding upon the TENANT, its successors and
assigns, if permitted.
	 
	34.	 	BANKRUPTCY
	 
	 	 	If TENANT shall make an assignment of its assets for the
benefit of creditors, or if TENANT shall file a
voluntary petition in bankruptcy, or if any involuntary
petition in bankruptcy or for receivership be instituted
against the TENANT and the same be not dismissed within
thirty (30) days of the filing thereof, or if TENANT
shall be adjudged bankrupt, then and in any of said
events, this Lease shall immediately cease and terminate
at the option of the LANDLORD with the same force and
effect as though the date of said event was the date
herein fixed for expiration of the term of this Lease.
	 
	35.	 	NON-DELIVERY
	 
	 	 	N/A
	 
	36.	 	PARTIAL INVALIDITY
	 
	 	 	If any term, covenant, or condition of this Lease or the
application thereof to any person or circumstance shall
be held to be invalid and unenforceable, the remainder
of this Lease, and the application of such terms,
covenants, or conditions shall be valid and enforceable
to the fullest extent permitted by law.
	 
	37.	 	FORCE MAJEURE
	 
	 	 	With the exception of those
provisions contained herein
regarding the payment of rent, the inability of either
party to perform any of the terms, covenants or
conditions of this Lease shall not be deemed a default
if the same shall be due to any cause beyond the control
of that party.
	 
	38.	 	WAIVER OF SUBROGATION
	 
	 	 	If either party hereto is paid any proceeds under any
policy of insurance naming such party as an insured on
account of any loss, damage or liability, then such
party hereby releases the other party to (and only to)
the extent of the amount of such proceeds, from any and
all liability for such loss or damage, notwithstanding
negligent or intentionally tortious act or omission of
the other party, its agents or employees; provided, such
release shall be effective only as to a loss or damage
occurring while the appropriate policy of insurance of
the releasing party provides that such release shall not
impair the effectiveness of such policy or the insured’s
ability to recover thereunder. Each party hereto shall
use reasonable efforts to have a clause to such effect
included

PAGE 10

 

	 	 	in its said policies, and shall promptly notify the
other in writing if such a clause cannot be included in
any such policy.
	 
	39.	 	ESTOPPEL CERTIFICATE
	 
	 	 	The TENANT shall from time to time, within five (5) days
after being requested to do so by the LANDLORD or any
Mortgages, execute, acknowledge and deliver to the
LANDLORD (or, at the LANDLORD’s request, to any existing
or prospective purchaser, transferee, assignee or
Mortgagee of any or all of the Premises) an instrument
in recordable form, certifying if true and correct (a)
that this Lease is unmodified and in full force and
effect (or, if there has been any modification thereof, that it is in
full force and effect as so modified stating therein the nature of such
modification); (b) as to the dates to which the minimum
Rent and other charges arising hereunder have been paid;
(c) as to the amount of any prepaid Rent or any credit
due to the Tenant hereunder; (d) that the TENANT has
accepted possession of the Premises, and the date on
which the Term commenced; (e) as to whether, to the best
knowledge, information and belief of the signer of such
certificate, the LANDLORD or the TENANT is then in default in
performing any of its obligations hereunder (and, if so,
specifying the nature of each such defaults); and (f) as
to any other fact or condition reasonably requested by
the LANDLORD or such other addresses. In the event the
TENANT fails or refuses to provide such a certificate,
TENANT shall be liable to LANDLORD for any loss or
damage (including reasonable counsel fees) arising out
of or in connection with such failure or refusal.

          
 IN WITNESS WHEREOF, the parties have caused this Lease
Agreement to be executed on the year and date first written.

	 	 	 	 	 
	WITNESS:	 	
W.M. Rickman Construction Company	 	 
	 
	/s/ SIGNATURE	 	
/s/ WILLIAM M. RICKMAN
	 	3/30/95
	
	 	
	 	

	 	 	
William M. Rickman
	 	Date
	 
	ATTEST:	 	
PRI Dyncorp	 	 
	 
	/s/ MATTHEW T. COHEN	 	
/s/ RICHARD A. ZAKOUR
	 	3/30/95
	
	 	
	 	

		 	
Richard A. Zakour
	 	Date
	MATTHEW T. COHEN
CONTRACTS MANAGER	 	 	 	 

PAGE 11ex10-11

 

LEASE AGREEMENT

               THIS LEASE is executed this first day of September, 2000, by and between
GPG ENTERPRISES, L.L.C., a Missouri limited liability company (“Landlord”), and
THE FIELDING PHARMACEUTICAL COMPANY, a Missouri corporation (“Tenant”).

WITNESSETH:

ARTICLE 1 — LEASE OF PREMISES

     Section 1.01. Basic Lease Provisions and Definitions.

	 	 	 	 	 
	A.	 	Leased Premises:	 	The office and warehouse
building (the “Building”) located at
11551 Adie Road, Maryland Heights,
Missouri, and the land on which
the Building is located, which land is
described on Exhibit A attached hereto.
	 	 	 	 	 
	B.	 	
Monthly Rental Installments: Lease Year 1 $10,687.50 per month, Lease Year 2 $10,954.69,

	 	 	        Lease Year 3 $11,228.55
	 	 	        Lease Years 4 – 6 (Extension Term); See Section 15.09(b)
	 	 	 	 	 
	C.	 	
Lease Term: Three years plus one (1) renewal option for an additional Three years.

	 	 	 	 	 
	D.	 	
Commencement Date: September 1, 2000

	 	 	 	 	 
	E.	 	
Security Deposit: $10,687.50

	 	 	 	 	 
	F.	 	
Permitted Use: Office, warehouse and light industrial purposes.

	 	 	 	 	 
	G.	 	
Address for notices:	 	 
	 	 	 	 	 
	 	 	
Landlord:
	GPG Enterprises, L.L.C.
	 	 	 	133 Bryn Wyck
	 	 	 	St. Louis, MO 63141
	 	 	 	 	 
	 	 	
Tenant:
	The Fielding Pharmaceutical Company, Inc.
	 	 	 	11551 Adie Road
	 	 	 	Maryland Heights, Missouri 63043
	 	 	 	 	 
	 	 	
Address for rental and other payments:
	 	 	 	 	 
	 	 	 	GPG Enterprises, L.L.C.
	 	 	 	133 Bryn Wyck
	 	 	 	St. Louis, MO 63141

               Section 1.02. Leased Premises. Landlord hereby leases to Tenant and
Tenant leases from Landlord, under the terms and conditions herein, the
Leased Premises. Tenant hereby accepts the Leased Premises in their “as is”
condition and subject to all restrictions, covenants, easements,
rights-of-way of record, if any, and applicable zoning regulations regulating
the use of the Leased Premises, and accepts this Lease subject thereto and to
all matters disclosed thereby. Landlord makes and has
made no representations or warranties with respect to the condition of the
Leased Premises or as to its suitability for the use or uses contemplated by
Tenant.

 

 

ARTICLE 2 — TERM AND POSSESSION

               Section 2.01. Term. The term of this Lease (“Lease Term”) shall be for
the period of time as set forth in Section 1.01(C) hereof, and shall commence
on the Commencement Date.

               Section 2.02. Surrender of the Premises. Upon the expiration or
earlier termination of this Lease, Tenant shall immediately surrender the
Leased Premises to Landlord in good condition and repair. Tenant shall also
remove its personal property, trade fixtures and any of Tenant’s alterations
designated by Landlord, promptly repair any damage caused by such removal,
and restore the Leased Premises to the condition existing upon the
Commencement Date, reasonable wear and tear excepted. If Tenant fails to do
so, Landlord may restore the Leased Premises to such condition at Tenant’s
expense, Landlord may cause all of said property to be removed at Tenant’s
expense, and Tenant hereby agrees to pay all the costs and expenses thereby
reasonably incurred. All Tenant property which is not removed within ten
(10) days following Landlord’s written demand therefor shall be conclusively
deemed to have been abandoned by Tenant, and Landlord shall be entitled to
dispose of such property at Tenant’s cost without thereby incurring any
liability to Tenant. The provisions of this section shall survive the
expiration or other termination of this Lease.

               Section 2.03. Holding Over. If Tenant retains possession of the Leased
Premises after the expiration or earlier termination of this Lease, Tenant
shall become a tenant from month to month at twice the Monthly Rental
Installment in effect at the end of the Lease Term, and otherwise upon the
terms, covenants and conditions herein specified, so far as applicable.
Acceptance by Landlord of rent in such event shall not result in a renewal of
this Lease, and Tenant shall vacate and surrender the Leased Premises to
Landlord upon Tenant being given thirty (30) days’ prior written notice from
Landlord to vacate whether or not said notice is given on the rent paying
date. This Section 2.03 shall in no way constitute a consent by Landlord to
any holding over by Tenant upon the expiration or earlier termination of this
Lease, nor limit Landlord’s remedies in such event.

ARTICLE 3 — RENT

               Section 3.01. Base Rent. Tenant shall pay to Landlord the Monthly
Rental Installments, in advance, without deduction or offset, beginning on
the Commencement Date and on or before the first day of each and every
calendar month thereafter during the Lease Term. The Monthly Rental
Installment for partial calendar months shall be prorated.

               Section 3.02. Additional Rent. In addition to the Monthly Rental
Installments, Tenant shall pay to Landlord for each calendar year during the
Lease Term, as “Additional Rent” all costs and expenses incurred by Landlord
during the Lease Term for (i) Real Estate Taxes, (ii) insurance premiums, and
(iii) Common Area Charges.

               “Real Estate Taxes” shall include any form of real estate tax or
assessment or service payments in lieu thereof, and any license fee,
commercial rental tax, improvement bond or other similar charge or tax (other
than inheritance, personal income or estate taxes) imposed upon the Leased
Premises (or against Landlord’s business of leasing the Leased Premises) by
any authority having the power to so charge or tax, together with costs and
expenses of contesting the validity or amount of Real Estate Taxes which at
Landlord’s option may be calculated as if such contesting work had been
performed on a contingent fee basis (whether charged by Landlord’s counsel or
representative;
provided, however, that said fees are reasonably comparable to the fees
charged for similar services by others not affiliated with Landlord, but in
no event shall fees exceed thirty-three percent (33%) of the good faith
estimated tax savings). Additionally, Tenant shall pay, prior to delinquency,
all taxes assessed against and levied upon trade fixtures, furnishings,
equipment and all personal property of Tenant contained in the Leased
Premises.

-2-

 

               “Common Area Charges” shall mean all of Landlord’s expenses for
management, operation, repair, replacement and maintenance to keep the Leased
Premises in good order, condition and repair, including, but not limited to:
management fees; common area utilities; stormwater discharge fees; license,
permit, inspection and other fees; fees and assessments imposed by any
covenants or owners’ association; professional fees; security services; costs
in complying with any governmental laws or ordinances; and maintenance,
repair and replacement of the driveways, parking and loading areas (including
snow removal), exterior lighting, landscaped areas, walkways, curbs, drainage
strips, sewer lines, exterior walls, foundation, structural frame, roof and
gutters. The cost of any capital improvement shall be amortized over the
useful life of such improvement (as reasonably determined by Landlord), and
only the amortized portion shall be included in Common Area Charges.
Notwithstanding the foregoing, Tenant shall not be responsible for the cost
of replacing the roof, exterior walls, foundation and/or structural frame of
the Building.

               Section 3.03. Payment of Additional Rent. Landlord shall estimate the
total amount of Additional Rent to be paid by Tenant during each calendar
year of the Lease Term, pro-rated for any partial years. Commencing on the
Commencement Date, Tenant shall pay to Landlord each month, at the same time
the Monthly Rental Installment is due, an amount equal to one-twelfth (1/12)
of the estimated Additional Rent for such year. Within a reasonable time
after the end of each calendar year, Landlord shall submit to Tenant a
statement of the actual amount of such Additional Rent, and within thirty
(30) days after receipt of such statement, Tenant shall pay any deficiency
between the actual amount owed and the estimates paid during such calendar
year. In the event of overpayment, Landlord shall credit the amount of such
overpayment toward the next Monthly Rental Installment.

               Section 3.04. Late Charges. Tenant acknowledges that Landlord shall
incur certain additional unanticipated administrative and legal costs and
expenses if Tenant fails to timely pay any payment required hereunder.
Therefore, in addition to the other remedies available to Landlord hereunder,
if any payment required to be paid by Tenant to Landlord hereunder shall
become overdue, such unpaid amount shall bear interest from the due date
thereof to the date of payment at the prime rate (as reported in the Wall
Street Journal) of interest (“Prime Rate”) plus six percent (6%) per annum.

ARTICLE 4 — SECURITY DEPOSIT

               Tenant, upon execution of this Lease, shall deposit with Landlord the
Security Deposit as security for the performance by Tenant of all of Tenant’s
obligations contained in this Lease. In the event of a default by Tenant
Landlord may apply all or any part of the Security Deposit to cure all or any
part of such default; and Tenant agrees to promptly, upon demand, deposit
such additional sum with Landlord as may be required to maintain the full
amount of the Security Deposit. All sums held by Landlord pursuant to this
section shall be without interest. At the end of the Lease Term, provided
that there is then no uncured default, Landlord shall return the Security
Deposit to Tenant.

ARTICLE 5 — USE

          
     Section 5.01. Use of Leased Premises. The Leased Premises are to be
used by Tenant solely for the Permitted Use and for no other purposes without
the prior written consent of Landlord.

               Section 5.02. Covenants of Tenant Regarding Use. Tenant shall (i) use
and maintain the Leased Premises and conduct its business thereon in a safe,
careful, reputable and lawful manner, (ii) comply with all laws, rules,
regulations, orders, ordinances, directions and requirements of any
governmental authority or agency, now in force or which may hereafter be in
force, including without limitation those which shall impose upon Landlord or
Tenant any duty with respect to or triggered by a change in the use or
occupation of, or any improvement or alteration to, the Leased Premises, and
(iii) comply with and obey all reasonable directions of the Landlord,
including any rules and regulations that may be adopted by Landlord from time
to time. Tenant shall not use the Leased Premises, or allow the

-3-

 

Leased Premises to be used, for any purpose or in any manner which would invalidate
any policy of insurance now or hereafter carried on the Building or increase
the rate of premiums payable on any such insurance policy unless Tenant
reimburses Landlord as Additional Rent for any increase in premiums charged.

               Section 5.03. Landlord’s Rights Regarding Use. In addition to the
rights specified elsewhere in this Lease, Landlord or Landlord’s agent shall
be permitted to inspect or examine the Leased Premises at any reasonable time
upon reasonable notice (except in an emergency when no notice shall be
required), and Landlord shall have the right to make any repairs to the
Leased Premises which are necessary for its preservation; provided, however,
that any repairs made by Landlord shall be at Tenant’s expense, except as
provided in Section 7.02 hereof. Landlord shall incur no liability to Tenant
for such entry, nor shall such entry constitute an eviction of Tenant or a
termination of this Lease, or entitle Tenant to any abatement of rent
therefor.

ARTICLE 6 — UTILITIES AND SERVICES

               Tenant shall obtain in its own name and pay directly to the appropriate
supplier the cost of all utilities and services serving the Leased Premises.
Landlord shall not be liable in damages or otherwise for any failure or
interruption of any utility or other building service and no such failure or
interruption shall entitle Tenant to terminate this Lease or withhold sums
due hereunder.

ARTICLE 7 — MAINTENANCE AND REPAIRS

               Section 7.01. Tenant’s Responsibility. During the Lease Term, Tenant
shall, at its own cost and expense, maintain the Building in good condition,
regularly servicing and promptly making all repairs and replacements thereto,
including but not limited to the electrical systems, heating and air
conditioning systems, plate glass, floors, windows and doors, sprinkler and
plumbing systems, and shall obtain a preventive maintenance contract on the
heating, ventilating and air-conditioning systems, and provide Landlord with
a copy thereof. The preventive maintenance contract shall meet or exceed
Landlord’s standard maintenance criteria, and shall provide for the
inspection and maintenance of the heating, ventilating and air conditioning
system on not less than a semi-annual basis.

               Section 7.02. Landlord’s Responsibility. During the Lease Term,
Landlord shall maintain in good condition and repair, and replace as
necessary, the roof, exterior walls, foundation and structural frame of the
Building and the parking and landscaped areas, the costs of which shall be
included in Common Area Charges (except as limited by Section 3.02);
provided, however, that to the extent any of the foregoing items require
repair because of the negligence, misuse, or default of Tenant, its
employees, agents, customers or invitees, Landlord shall make such repairs
solely at Tenant’s expense.

               Section 7.03. Alterations. Tenant shall not permit alterations in or
to the Leased Premises unless and until the plans have been approved by
Landlord in writing. As a condition of such approval,
Landlord may require Tenant to remove the alterations and restore the Leased
Premises upon termination of this Lease; otherwise, all such alterations
shall at Landlord’s option become a part of the realty and the property of
Landlord, and shall not be removed by Tenant. Tenant shall ensure that all
alterations shall be made in accordance with all applicable laws, regulations
and building codes, in a good and workmanlike manner and of quality equal to
or better than the original construction of the Building. No person shall be
entitled to any lien derived through or under Tenant for any labor or
material furnished to the Leased Premises, and nothing in this Lease shall be
construed to constitute a consent by Landlord to the creation of any lien.
If any lien is filed against the Leased Premises for work claimed to have
been done for or material claimed to have been furnished to Tenant, Tenant
shall cause such lien to be discharged of record within thirty (30) days
after filing. Tenant shall indemnify Landlord from all costs, losses,
expenses and attorneys’ fees in connection with any construction or
alteration and any related lien.

-4-

 

ARTICLE 8 — CASUALTY

               Section 8.01. Casualty. In the event of total or partial destruction
of the Building or the Leased Premises by fire or other casualty, Landlord
agrees to promptly restore and repair same; provided, however, Landlord’s
obligation hereunder shall be limited to the reconstruction of such of the
tenant finish improvements as were originally required to be made by
Landlord, if any. Rent shall proportionately abate during the time that the
Leased Premises or part thereof are unusable because of any such damage.
Notwithstanding the foregoing, if the Leased Premises are (i) so destroyed
that they cannot be repaired or rebuilt within one hundred eighty (180) days
from the casualty date; or (ii) destroyed by a casualty which is not covered
by the insurance required hereunder or, if covered, such insurance proceeds
are not released by any mortgagee entitled thereto or are insufficient to
rebuild the Building and the Leased Premises; then, in case of a clause (i)
casualty, either Landlord or Tenant may, or, in the case of a clause (ii)
casualty, then Landlord may, upon thirty (30) days’ written notice to the
other party, terminate this Lease with respect to matters thereafter
accruing.

               Section 8.02. All Risk Coverage Insurance. During the Lease Term,
Landlord shall maintain all risk coverage insurance on the Building, but
shall not protect Tenant’s property on the Leased Premises; and,
notwithstanding the provisions of Section 9.01, Landlord shall not be liable
for any damage to Tenant’s property, regardless of cause, including the
negligence of Landlord and its employees, agents and invitees. Tenant hereby
expressly waives any right of recovery against Landlord for damage to any
property of Tenant located in or about the Leased Premises, however caused,
including the negligence of Landlord and its employees, agents and invitees.
Notwithstanding the provisions of Section 9.01 below, Landlord hereby
expressly waives any rights of recovery against Tenant for damage to the
Leased Premises or the Building, which is insured against under Landlord’s
all risk coverage insurance. All insurance policies maintained by Landlord
or Tenant as provided in this Lease shall contain an agreement by the insurer
waiving the insurer’s right of subrogation against the other party to this
Lease.

ARTICLE 9 — LIABILITY INSURANCE

               Section 9.01. Tenant’s Responsibility. Landlord shall not be liable to
Tenant or to any other person for (i) damage to property or injury or death
to persons due to the condition of the Leased Premises or the Building, or
(ii) the occurrence of any accident in or about the Leased Premises, or (iii)
any act or neglect of Tenant or of any other person, unless such damage,
injury or death is directly and solely the result of Landlord’s negligence;
and Tenant hereby releases Landlord from any and all liability for the same.
Tenant shall be liable for, and shall indemnify and defend Landlord from, any
and all liability for (i) any act or neglect of Tenant and any person coming
on the Leased Premises by
the license of Tenant, express or implied, (ii) any damage to the Leased
Premises, and (iii) any loss of or damage or injury to any person (including
death resulting therefrom) or property occurring in, on or about the Leased
Premises, regardless of cause, except for any loss or damage covered by
Landlord’s all risk coverage insurance as provided in Section 8.02 and except
for that caused solely and directly by Landlord’s negligence. This provision
shall survive the expiration or earlier termination of this Lease.

               Section 9.02. Tenant’s Insurance. Tenant shall carry general public
liability and property damage insurance, issued by one or more insurance
companies acceptable to Landlord, with the following minimum coverages:

	 	 	 
	A.	 	
Worker’s Compensation: minimum statutory amount.
	 	 	 
	B.	 	
Commercial General Liability Insurance, including blanket, contractual
liability, broad form property damage, personal injury, completed
operations, products liability, and fire damage: Not less than
$3,000,000 Combined Single Limit for both bodily injury and property
damage.

-5-

 

	 	 	 
	C.	 	
All Risk Coverage, Vandalism and Malicious Mischief, and Sprinkler
Leakage insurance, if applicable, for the full cost of replacement of
Tenant’s property.
	 	 	 
	D.	 	
Business interruption insurance.

The insurance policies shall protect Tenant and Landlord as their interests
may appear, naming Landlord and Landlord’s managing agent and mortgagee as
additional insureds, and shall provide that they may not be canceled on less
than thirty (30) days’ prior written notice to Landlord. Tenant shall
furnish Landlord with Certificates of Insurance evidencing all required
coverages on or before the Commencement Date. If Tenant fails to carry such
insurance and furnish Landlord with such Certificates of Insurance after a
request to do so, Landlord may obtain such insurance and collect the cost
thereof from Tenant.

ARTICLE 10 — EMINENT DOMAIN

               If all or any substantial part of the Leased Premises shall be acquired
by the exercise of eminent domain, Landlord may terminate this Lease by
giving written notice to Tenant on or before the date that actual possession
thereof is so taken. If all or any part of the Leased Premises shall be
acquired by the exercise of eminent domain so that the Leased Premises shall
become unusable by Tenant for the Permitted Use, Tenant may terminate this
Lease as of the date that actual possession thereof is so taken by giving
written notice to Landlord, and all damages awarded shall belong to Landlord;
provided, however, that Tenant may claim dislocation damages if such amount
is not subtracted from Landlord’s award.

ARTICLE 11 — ASSIGNMENT AND SUBLEASE

               Tenant shall not assign this Lease or sublet the Leased Premises in
whole or in part without Landlord’s prior written consent, which consent
shall not be unreasonably withheld, delayed or denied. In the event of any
assignment or subletting, Tenant shall remain primarily liable hereunder, and
any extension, expansion, rights of first offer, rights of first refusal or
other options granted to Tenant under this Lease shall be rendered void and
of no further force or effect. The acceptance of rent from any other person
shall not be deemed to be a waiver of any of the provisions of this Lease or
to be a consent to the assignment of this Lease or the subletting of the
Leased Premises. Without in any way limiting Landlord’s right to refuse to
consent to any assignment or subletting of this Lease, Landlord reserves
the right to refuse to give such consent if in Landlord’s opinion (i) the
Leased Premises are or may be in any way adversely affected; (ii) the
business reputation of the proposed assignee or subtenant is unacceptable; or
(iii) the financial worth of the proposed assignee or subtenant is
insufficient to meet the obligations hereunder. Landlord further expressly
reserves the right to refuse to give its consent to any subletting if the
proposed rent is to be less than the then current rent for similar premises
in the Park. Tenant agrees to reimburse Landlord for reasonable accounting
and attorneys’ fees incurred in conjunction with the processing and
documentation of any such requested assignment, subletting or any other
hypothecation of this Lease or Tenant’s interest in and to the Leased
Premises.

ARTICLE 12 — TRANSFERS BY LANDLORD

               Section 12.01. Sale of the Building. Landlord shall have the right to
sell the Building at any time during the Lease Term, subject only to the
rights of Tenant hereunder; and such sale shall operate to release Landlord
from liability hereunder after the date of such conveyance.

               Section 12.02. Subordination and Estoppel Certificate. Landlord shall
have the right to subordinate this Lease to any mortgage presently existing
or hereafter placed upon the Building by so declaring in such mortgage.
Within ten (10) days following receipt of a written request from Landlord,

-6-

 

Tenant shall execute and deliver to Landlord, without cost, any instrument
which Landlord deems necessary or desirable to confirm the subordination of
this Lease and an estoppel certificate in such form as Landlord may
reasonably request certifying (i) that this Lease is in full force and effect
and unmodified or stating the nature of any modification, (ii) the date to
which rent has been paid, (iii) that there are not, to Tenant’s knowledge,
any uncured defaults or specifying such defaults if any are claimed, and (iv)
any other matters or state of facts reasonably required respecting the Lease.
Such estoppel may be relied upon by Landlord and by any purchaser or
mortgagee of the Building. Notwithstanding the foregoing, if the mortgagee
shall take title to the Leased Premises through foreclosure or deed in lieu
of foreclosure, Tenant shall be allowed to continue in possession of the
Leased Premises as provided for in this Lease so long as Tenant shall not be
in default.

ARTICLE 13 — DEFAULT AND REMEDY

               Section 13.01. Default. The occurrence of any of the following shall
be a “Default”:

               (a)  Tenant fails to pay any Monthly Rental Installment or Additional
Rent within five (5) days after the same is due, or Tenant fails to pay any
other amounts due Landlord from Tenant within ten (10) days after the same is
due.

               (b)  Tenant fails to perform or observe any other term, condition,
covenant or obligation required under this Lease for a period of thirty (30)
days after notice thereof from Landlord; provided, however, that if the
nature of Tenant’s default is such that more than thirty days are reasonably
required to cure, then such default shall be deemed to have been cured if
Tenant commences such performance within said thirty-day period and
thereafter diligently completes the required action within a reasonable time.

               (c)  Tenant shall assign or sublet all or a portion of the Leased
Premises in contravention of the provisions of Article 11 of this Lease.

               (d)  All or substantially all of Tenant’s assets in the Leased Premises
or Tenant’s interest in this Lease are attached or levied under execution
(and Tenant does not discharge the same within sixty (60) days thereafter); a
petition in bankruptcy, insolvency or for reorganization or arrangement is
filed
by or against Tenant (and Tenant fails to secure a stay or discharge thereof
within sixty (60) days thereafter); Tenant is insolvent and unable to pay its
debts as they become due; Tenant makes a general assignment for the benefit
of creditors; Tenant takes the benefit of any insolvency action or law; the
appointment of a receiver or trustee in bankruptcy for Tenant or its assets
if such receivership has not been vacated or set aside within thirty (30)
days thereafter; or, dissolution or other termination of Tenant’s corporate
charter if Tenant is a corporation.

               Section 13.02. Remedies. Upon the occurrence of any Default, Landlord
shall have the following rights and remedies, in addition to those allowed by
law or in equity, any one or more of which may be exercised without further
notice to Tenant:

               (a)  Landlord may apply the Security Deposit or re-enter the Leased
Premises and cure any default of Tenant, and Tenant shall reimburse Landlord
as Additional Rent for any costs and expenses which Landlord thereby incurs;
and Landlord shall not be liable to Tenant for any loss or damage which
Tenant may sustain by reason of Landlord’s action.

               (b)  Landlord may terminate this Lease or, without terminating this
Lease, terminate Tenant’s right to possession of the Leased Premises as of
the date of such Default, and thereafter (i) neither Tenant nor any person
claiming under or through Tenant shall be entitled to possession of the
Leased Premises, and Tenant shall immediately surrender the Leased Premises
to Landlord; and (ii) Landlord may re-enter the Leased Premises and
dispossess Tenant and any other occupants of the Leased

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Premises by any
lawful means and may remove their effects, without prejudice to any other
remedy which Landlord may have. Upon the termination of this Lease, Landlord
may declare the present value (discounted at the Prime Rate) of all rent
which would have been due under this Lease for the balance of the Lease Term
to be immediately due and payable, whereupon Tenant shall be obligated to pay
the same to Landlord, together with all loss or damage which Landlord may
sustain by reason of Tenant’s default (“Default Damages”), which shall
include without limitation expenses of preparing the Leased Premises for
re-letting, demolition, repairs, tenant finish improvements, brokers’
commissions and attorneys’ fees, it being expressly understood and agreed
that the liabilities and remedies specified in this subsection (b) shall
survive the termination of this Lease.

               (c)  Landlord may, without terminating this Lease, re-enter the Leased
Premises and re-let all or any part thereof for a term different from that
which would otherwise have constituted the balance of the Lease Term and for
rent and on terms and conditions different from those contained herein,
whereupon Tenant shall be immediately obligated to pay to Landlord as
liquidated damages the present value (discounted at the Prime Rate) of the
difference between the rent provided for herein and that provided for in any
lease covering a subsequent re-letting of the Leased Premises, for the period
which would otherwise have constituted the balance of the Lease Term,
together with all of Landlord’s Default Damages.

               (d)  Landlord may sue for injunctive relief or to recover damages for
any loss resulting from the Default.

               Section 13.03. Landlord’s Default and Tenant’s Remedies. Landlord
shall be in default if it fails to perform any term, condition, covenant or
obligation required under this Lease for a period of thirty (30) days after
written notice thereof from Tenant to Landlord; provided, however, that if
the term, condition, covenant or obligation to be performed by Landlord is
such that it cannot reasonably be performed within thirty (30) days, such
default shall be deemed to have been cured if Landlord commences such
performance within said thirty-day period and thereafter diligently
undertakes to complete the same. Upon the occurrence of any such default,
Tenant may sue for injunctive relief or to
recover damages for any loss directly resulting from the breach, but Tenant
shall not be entitled to terminate this Lease or withhold, offset or abate
any sums due hereunder.

               Section 13.04. Limitation of Landlord’s Liability. If Landlord shall
fail to perform any term, condition, covenant or obligation required to be
performed by it under this Lease and if Tenant shall, as a consequence
thereof, recover a money judgment against Landlord, Tenant agrees that it
shall look solely to Landlord’s right, title and interest in and to the
Leased Premises for the collection of such judgment; and Tenant further
agrees that no other assets of Landlord shall be subject to levy, execution
or other process for the satisfaction of Tenant’s judgment.

               Section 13.05. Nonwaiver of Defaults. Neither party’s failure or delay
in exercising any of its rights or remedies or other provisions of this Lease
shall constitute a waiver thereof or affect its right thereafter to exercise
or enforce such right or remedy or other provision. No waiver of any default
shall be deemed to be a waiver of any other default. Landlord’s receipt of
less than the full rent due shall not be construed to be other than a payment
on account of rent then due, nor shall any statement on Tenant’s check or any
letter accompanying Tenant’s check be deemed an accord and satisfaction. No
act or omission by Landlord or its employees or agents during the Lease Term
shall be deemed an acceptance of a surrender of the Leased Premises, and no
agreement to accept such a surrender shall be valid unless in writing and
signed by Landlord.

               Section 13.06. Attorneys’ Fees. If either party defaults in the
performance or observance of any of the terms, conditions, covenants or
obligations contained in this Lease and the non-defaulting party obtains a
judgment against the defaulting party, then the defaulting party agrees to
reimburse the non-defaulting party for reasonable attorneys’ fees incurred in
connection therewith.

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ARTICLE 14 — TENANT’S RESPONSIBILITY REGARDING

ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES.

               Section 14.01. Definitions.

               a.     “Environmental Laws” — All present or future federal, state and
municipal laws, ordinances, rules and regulations applicable to the
environmental and ecological condition of the Leased Premises, the rules and
regulations of the Federal Environmental Protection Agency or any other
federal, state or municipal agency or governmental board or entity having
jurisdiction over the Leased Premises.

               b.     “Hazardous Substances” — Those substances included within the
definitions of “hazardous substances,” “hazardous materials,” “toxic
substances” “solid waste” or “infectious waste” under Environmental Laws.

               Section 14.02. Compliance. Tenant, at its sole cost and expense, shall
promptly comply with the Environmental Laws including any notice from any
source issued pursuant to the Environmental Laws or issued by any insurance
company which shall impose any duty upon Tenant with respect to the use,
occupancy, maintenance or alteration of the Leased Premises whether such notice
shall be served upon Landlord or Tenant.

               Section 14.03. Restrictions on Tenant. Tenant shall operate its business
and maintain the Leased Premises in compliance with all Environmental Laws.
Tenant shall not cause or permit the use, generation, release, manufacture,
refining, production, processing, storage or disposal of any Hazardous
Substances on, under or about the Leased Premises, or the transportation to or
from the Leased Premises of any Hazardous Substances, except as necessary and
appropriate for its Permitted Use in which case the
use, storage or disposal of such Hazardous Substances shall be performed in
compliance with the Environmental Laws and the highest standards prevailing in
the industry.

               Section 14.04. Notices, Affidavits, Etc. Tenant shall immediately notify
Landlord of (i) any violation by Tenant, its employees, agents,
representatives, customers, invitees or contractors of the Environmental Laws
on, under or about the Leased Premises, or (ii) the presence or suspected
presence of any Hazardous Substances on, under or about the Leased Premises and
shall immediately deliver to Landlord any notice received by Tenant relating to
(i) and (ii) above from any source. Tenant shall execute affidavits,
representations and the like within five (5) days of Landlord’s request
therefor concerning Tenant’s best knowledge and belief regarding the presence
of any Hazardous Substances on, under or about the Leased Premises.

               Section 14.05. Landlord’s Rights. Landlord and its agents shall have the
right, but not the duty, upon advance notice (except in the case of emergency
when no notice shall be required) to inspect the Leased Premises and conduct
tests thereon to determine whether or the extent to which there has been a
violation of Environmental Laws by Tenant or whether there are Hazardous
Substances on, under or about the Leased Premises. In exercising its rights
herein, Landlord shall use reasonable efforts to minimize interference with
Tenant’s business but such entry shall not constitute an eviction of Tenant, in
whole or in part, and Landlord shall not be liable for any interference, loss,
or damage to Tenant’s property or business caused thereby.

               Section 14.06. Tenant’s Indemnification. Tenant shall indemnify Landlord
and Landlord’s managing agent from any and all claims, losses, liabilities,
costs, expenses and damages, including attorneys’ fees, costs of testing and
remediation costs, incurred by Landlord in connection with any breach by Tenant
of its obligations under this Article 14. The covenants and obligations under
this Article 14 shall survive the expiration or earlier termination of this
Lease.

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               Section 14.07. Landlord’s Representation. Notwithstanding anything
contained in this Article 14 to the contrary, Tenant shall not have any
liability to Landlord under this Article 14 resulting from any conditions
existing, or events occurring, or any Hazardous Substances existing or
generated, at, in, on, under or in connection with the Leased Premises prior
to the Commencement Date of this Lease except to the extent Tenant
exacerbates the same.

ARTICLE 15 — MISCELLANEOUS

               Section 15.01. Benefit of Landlord and Tenant. This Lease shall inure
to the benefit of and be binding upon Landlord and Tenant and their
respective successors and assigns.

               Section 15.02. Governing Law. This Lease shall be governed in
accordance with the laws of the state where the Leased Premises is located.

               Section 15.03. Force Majeure. Landlord and Tenant (except with respect
to the payment of any monetary obligation) shall be excused for the period of
any delay in the performance of any obligation hereunder when such delay is
occasioned by causes beyond its control, including but not limited to work
stoppages, boycotts, slowdowns or strikes; shortages of materials, equipment,
labor or energy; unusual weather conditions; or acts or omissions of
governmental or political bodies.

               Section 15.04. Examination of Lease. Submission of this instrument for
examination or signature to Tenant does not constitute a reservation of or
option for Lease, and it is not effective as a Lease or otherwise until
execution by and delivery to both Landlord and Tenant.

               Section 15.05. Indemnification for Leasing Commissions. The parties
hereby represent and warrant that there are no real estate brokers involved
in the negotiation and execution of this Lease. Each party shall indemnify
the other from any and all liability for the breach of this representation
and warranty on its part and shall pay any compensation to any other broker
or person who may be entitled thereto.

               Section 15.06. Notices. Any notice required or permitted to be given
under this Lease or by law shall be deemed to have been given if it is
written and delivered in person or by overnight courier or mailed by
certified mail, postage prepaid, to the party who is to receive such notice
at the address specified in Article 1. If delivered in person, notice shall
be deemed given as of the delivery date. If sent by overnight courier,
notice shall be deemed given as of the first business day after sending. If
mailed, the notice shall be deemed to have been given on the date which is
three business days after mailing. Either party may change its address by
giving written notice thereof to the other party.

               Section 15.07. Partial Invalidity; Complete Agreement. If any
provision of this Lease shall be held to be invalid, void or unenforceable,
the remaining provisions shall remain in full force and effect.. This Lease
represents the entire agreement between Landlord and Tenant covering
everything agreed upon or understood in this transaction. There are no oral
promises, conditions, representations, understandings, interpretations or
terms of any kind as conditions or inducements to the execution hereof or in
effect between the parties. No change or addition shall be made to this
Lease except by a written agreement executed by Landlord and Tenant.

               Section 15.08. Representations and Warranties. The undersigned represent
and warrant that (i) such party is duly organized, validly existing and in good
standing (if applicable) in accordance with the laws of the state under which
it was organized; and (ii) the individual executing and delivering this Lease
has been properly authorized to do so, and such execution and delivery shall
bind such party.

               Section 15.09. Option to Extend.

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                a.     Provided (i) Tenant has not been in default hereunder at any time
during the Lease Term (the “Original Term”), (ii) the creditworthiness of
Tenant is then acceptable to Landlord, (iii) Tenant originally named herein
remains in possession of and has been continuously operating in the entire
Leased Premises for the term immediately preceding the Extension Term
(defined below), and (iv) the current use of the Leased Premises is
acceptable to Landlord, Tenant shall have the option to extend the Original
Term for one (1) successive period of two (2) years (the “Extension Term”).
The Extension Term shall be upon the same terms and conditions contained in
the Lease for the Original Term except the Monthly Rental Installments shall
be adjusted as set forth below (the “Rent Adjustment”). Tenant shall
exercise such option by delivering to Landlord, no later than six (6) months
prior to the expiration of the Original Term, written notice of Tenant’s
desire to extend the Original Term. Unless Landlord otherwise agrees in
writing, Tenant’s failure to timely exercise such option shall waive it.
Landlord shall notify Tenant of the amount of the Rent Adjustment no later
than ninety (90) days prior to the commencement of the Extension Term. If
Tenant properly exercises its option to extend, Landlord and Tenant shall
execute an amendment to the Lease reflecting the amount of the Rent due under
the Extension Term.

                b.     The Monthly Rental Installments for the Extension Term shall be (I)
$11,509.27 for the first year of the Extension Term, and (ii) $11,797.00 for
the second year of the Extension Term, and (iii) $12,091.93 for the third year
of the Extension Term.

                     (c)       Notwithstanding the foregoing, in no event shall the Monthly Rental
Installments payable during the Extension Term as adjusted hereby be less than
the Monthly Rental Installments paid during the Original Term.

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

	 	 	 
	 	 	LANDLORD:
	 	 	 
	 	 	GPG ENTERPRISES, L.L.C., a

        Missouri limited liability company
	 	 	 
	 	 	By:_____________________________________________
	 	 	Printed Name:_____________________________________
	 	 	Title:____________________________________________
	 	 	 
	 	 	TENANT:
	 	 	 
	 	 	THE FIELDING PHARMACEUTICAL COMPANY, INC., a
Missouri corporation
	 	 	 
	 	 	By:_____________________________________________
	 	 	Printed Name:_____________________________________
	 	 	Title:____________________________________________

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EXHIBIT A

[INSERT: Legal Description of Leased Premises.]

-12-

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