Document:

As at

Exhibit

10.33

	

   

  	

  As at

  
	

   

  	

  Dated:  December 1, 1986

  

 

THIS AGREEMENT, BETWEEN BERNARD LEVERE and ZELDA

LEVERE of 684 Carroll Place, Teaneck, New Jersey 07666 as Landlord

and PIONEER PHARMACEUTICALS, INC.,

a Corporation of                                             having an office at 209 40th Street, Irvington,

New Jersey 07111 and ESSEX CHEMICAL CORP.,

a Corporation of                                   , having an office at 1401 Broad

Street, Clifton, N.J. 07015, as Guarantor.

WITNESSETH: 

That the said Landlord has let unto the said Tenant and the said Tenant

has hired from the said Landlord, the following premises;  the Land and building thereon known and

designated as No. 191 40th Street, in the Town of Irvington,

Essex County, New Jersey and subject to such facts as an accurate survey may

disclose, easements, rights of way and restrictions of record, none of which

restrictions, however, shall prevent the use of the land and building for the

purposes set forth in this lease;

for the term of fifteen (15) years to commence from

the 1st day of January 1987, and to end on the 31st day

of December, 2001 be used and occupied only for light manufacturing and office

space upon the conditions and covenants following;

1st:          That

the Tenant shall pay the annual/fixed rent as set forth in paragraph 68th

to be paid to Landlord at 684 Carroll Place, Teaneck, New Jersey, or such other

place as may hereafter be designated by Landlord;

said/fixed rent to be paid in equal monthly payments

in advance on the first day of each and every month during the term aforesaid,

as set forth in paragraph 68th with the exception that the first

monthly payment of fixed rent shall be paid upon execution of this lease.  In addition, Tenant shall pay as additional

rent all other sums of money on Tenant’s part to be paid.

2nd:        That

the Tenant shall take good care of the premises and shall at the Tenant’s own

cost and expense make all repairs and replacements to keep and maintain the

premises, including but not limited to the interior and exterior of the

building, structural and non-structural, foreseen and unforeseen, patent and

latent, the driveways, the parking areas, the shrubbery and lawn, in order and

good condition and at the end or other expiration of the term, shall deliver up

the deemed premises/broom clean, in good order and condition.  Damage by the elements and reasonable wear

and tear excepted.  See Pars. 40, 46 and

47.

3rd:         That

the Tenant shall promptly execute and comply with all statutes, ordinances,

rules, orders, regulations and requirements of the Federal, State and City

Government and of any and all their Departments and Bureaus applicable to said

premises, for the correction, prevention, and abatement of nuisances,

violations or other grievances, in, upon or connected with said premises during

said term; and shall also promptly comply with and execute all rules, orders,

and regulations of the Board of Fire Underwriters, or any other similar body,

for the prevention of 

 

1

 

fires, at

the Tenant’s own cost and expense* and Tenant’s use and occupancy of the

premises, and

4th:         That

in case the Tenant shall fail or neglect to comply with the aforesaid statutes,

ordinances, rules, orders, regulations and requirements or any of them, or in

case the Tenant shall fail or neglect to make any necessary repairs, then the

Landlord or the Landlord’s Agents may enter said premises and make said repairs

and comply with any and all of the said statutes, ordinances, rules, orders,

regulations or requirements, at the cost and expense of the Tenant and in case

of the Tenant’s failure to pay therefore, the said cost and expense shall be

added to the next month’s rent and be due and payable as such, or the Landlord

may deduct the same from the balance of any sum remaining in the Landlord’s

hands.  This provision is in addition to

the right of the Landlord to terminate this lease by reason of any default on

the part of the Tenant.

5th:         That

the Tenant shall not assign this agreement, or underlet or underlease the

premises or any part thereof.  That

Tenant shall not occupy, or permit or [illegible] the same to be occupied for

any business or purpose deemed disreputable or extra-hazardous on account of

fire, under penalty of damages and forfeiture. 

See paragraph 77th. 

73rd.

 

6th:         That

no alterations, additions or improvements shall be made in or to the premises

without the consent of the Landlord in writing, under penalty of damages and

forfeiture, and all additions and improvements made by the Tenant shall belong

to the Landlord.

7th:         In

case of damage, by fire or other cause, to the building in which the leased

premises are located, if the damage is so extensive as to amount practically to

the total destruction of the leased premises or of the building, and the

Landlord shall within a reasonable time decide not to rebuild, this lease shall

cease and come to an end, and the rent shall be apportioned to the time of the

damage.  In all other cases where the

leased premises are damaged by fire without the fault of the Tenant or of

Tenant’s agents or employees the Landlord shall repair the damage with

reasonable dispatch after notice of damage, and if the damage has rendered the

premises untenantable, in whole or in part, there shall be an apportionment of

the rent until the damage has been repaired. 

In determining what constitutes reasonable dispatch consideration shall

be given to delays caused by strikes, adjustment of insurance and other causes

beyond the Landlord’s control.  Tenant

shall immediately notify Landlord of damage to the premises.

8th:         That

said Tenant agrees that the said Landlord and Landlord’s Agents, and other

representatives, shall have the right to enter into and upon said premises, or

any part thereof, at all reasonable hours for the purpose of examining the

same, or making such repairs or alterations therein as may be necessary for the

safety and preservation thereof.

9th:         The

Tenant also agrees to permit the Landlord or Landlord’s Agents to show the

premises to persons wishing to hire or purchase the same: and the Tenant

further agrees that 

 

* Provided Tenant is not

in default, Landlord shall return the aforesaid security deposit:

	

  (a)

  	

  $11,922 on January 1, 1991.

  
	

  (b)

  	

  $11,922 on January 1, 1995.

  
	

  (c)

  	

  $11,922 upon expiration of the Lease.

  

 

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during the six months

next prior to the expiration of the term, the Landlord or Landlord’s Agents

shall have the right to place notices on the front of said premises, or any

part thereof, offering the premises “To Let” or “For Sale,” and the Tenant

hereby agrees to permit the same to remain thereon without hindrance or

molestation.  See par. 36th.

10th:       Paragraph

10th intentionally deleted.

11th:       The

Tenant shall replace, at the expense of Tenant, any and all broken glass in and

about the demised premises may insure, and keep insured, all plate glass in the

demised premises for and in the same of Landlord.  Bills, for the premiums therefore shall be payable by Tenant and

the amount thereof shall be deemed to be, and be paid as, additional

rental.  Damage and injury to the said

premises, caused by the carelessness, negligence or improper conduct on the

part of the said Tenant or the Tenant’s agents or employees shall be repaired

as speedily as possible by the Tenant at the Tenant’s own cost and expense.

12th:       That

the Tenant shall neither encumber, nor obstruct the sidewalk in front of,

entrance to or halls and stairs of said building, nor allow the same to be

obstructed or encumbered in any manner.

13th:       The Tenant

shall neither place, nor cause, nor allow to be placed, any sign or signs of

any kind whatsoever at, in or about the entrance to said premises nor any other

part of same except in or at such place or places as may be indicated by the

said Landlord and consented to by Landlord in writing.  And in case the Landlord or Landlord’s

representatives shall deem it necessary to remove any such sign or signs in

order to paint or to make any other repairs, alterations or improvements in or

upon said premises or the building wherein same is situated or any part

thereof, the Landlord shall have the right to do so, providing the same be

removed and replaced at the Landlord’s expense whenever the said repairs,

alterations or improvements shall have been completed.  See par. 37th.

 

14th:       It

is expressly agreed and understood by and between the parties to this

agreement, that the Landlord shall not be liable for any damage or injury to

person or property caused by or resulting from steam, electricity, gas, water,

rain, ice or snow, or any leak or flow from or into any part of said building,

or from any damage or injury resulting or arising from any other cause or

happening whatsoever, unless caused by or due to the gross negligence of

Landlord.

15th:       That

if default be made in any of the covenants herein contained, then it shall be

lawful for the said Landlord to re-enter the said premises, and the same to

have again, re-possess and enjoy.

16th:       That

this lease shall not be a lien against said premises in respect to any mortgages

that are now on or that hereafter may be placed against said premises, and that

the recording of such mortgage or mortgages shall have preference and

precedence and be superior and prior in lieu of this lease irrespective of the

date of recording and the Tenant agrees to execute any instrument without cost,

which may be deemed necessary or desirable to further affect the subordination

of this lease to any such mortgage or mortgages, and a refusal to execute such

instruments shall entitle the Landlord, or the Landlord’s assigns and legal

representatives to 

 

3

 

the option of canceling this lease without incurring

any expense or damage, and the term hereby granted is expressly limited

accordingly.**

17th:       The

Tenant has this day deposited with the Landlord the sum of $35,766 as security

for the full and faithful performance by the Tenant of all of the terms and

conditions upon the Tenant’s part to be performed, which said sum shall be

returned to the Tenant, without interest as follows: * (provided the Tenant has

fully and faithfully carried out all of the terms, covenants and conditions on

the Tenant’s part to be performed.  In

the event of a bona fide sale, subject to this lease, the Landlord shall have

the right to transfer the security to the vendee for the benefit of the Tenant

and the Landlord shall be considered released by the Tenant from all

liability  for the return of such

security; and the Tenant agrees to look to the new Landlord sole y for the

return of the said security, and it is agreed that this shall apply to every

transfer or assignment made of the security to a new Landlord.*  without interest

18th:       That

the security deposited under this lease shall not be mortgaged, assigned or

encumbered by the Tenant without the written consent of the Landlord.

19th:       It

is expressly understood and agreed that if for any reason it shall be

impossible to obtain fire insurance on the buildings and improvements on the

demised premises is an amount, and in the form, and in fire insurance companies

acceptable to the Landlord the Landlord may, if the Landlord so elects, at any

time thereafter terminate this lease and the term thereof, on giving to the

Tenant three days’ notice in writing of Landlord’s intention so to do and upon

the giving of such notice, this lease and the term thereof shall terminate and

come to an end.

20th:       It

is expressly understood and agreed that in case the demised premises shall be

deserted or vacated, or if default be made in the payment of the rent or any

part thereof as herein specified, or if, without the consent of the Landlord,

the Tenant shall sell, assign, or mortgage this lease or if default be made in

the performance of any of the covenants and agreements to this lease contained

on the part of the Tenant to be kept and performed, or if the Tenant shall fail

to comply with any of the statutes, ordinances, rules, orders, regulations and

requirements of the Federal, State and City Government or of any and all their

Departments and Bureaus, applicable to said premises, or if the Tenant shall

file or there be filed against Tenant a petition in bankruptcy or arrangement,

or Tenant be adjudicated a bankrupt, or make an assignment for the benefit of

creditors or take advantage of any insolvency act, the Landlord may, if the

Landlord so elects, at any time thereafter terminate this lease and the term

hereof, on giving to the Tenant five days’ notice in writing of the Landlord’s

intention so to do, and this lease and the term hereof shall expire and come to

an end on the date fixed in such notice as if the said date were the date

originally fixed in this lease for the expiration hereof.  Such notice may be given by mail to the

Tenant addressed to the demised premises.

** Notwithstanding the

foregoing, Tenant shall not be required to subordinate this lease to mortgages

totaling more than $1,610,000 unless the mortgages provide Tenant with a

covenant not to disturb Tenant’s occupancy provided Tenant is not in default

under the lease.  Landlord covenants to

pay all payments due in connection with mortgages currently encumbering the

property.

 

 

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21st:        The

Tenant shall pay the rent or charge, which may, during the demised term, be

assessed or imposed for the water used or consumed in or on the said premises,

whether determined by meter or otherwise, as soon as and when the same may be

assessed or imposed, and will also pay the expenses for the setting of a water

meter in the said premises should the latter be required.  See par. 39th.

 

22nd:      The

obligations of the Tenant, if there be more than one, to the performance of the

terms, conditions and covenants of this lease, shall be joint and several.

23rd:       It

after default in payment of rent or violation of any other provision of this

lease, or upon the expiration of this lease, Tenant moves out or is

dispossessed and fails to remove any trade fixtures or other property prior to

such default, removal, expiration of lease, or prior to the issuance of the

final order or execution of the warrant, then and in that event, the fixtures

and property shall be deemed abandoned by Tenant and shall become the property

of Landlord.

24th:       The

failure of Landlord to insist upon strict performance of any of the terms,

covenants or conditions of this lease or to exercise any option conferred in

this lease in any one or more instances, shall not be construed as a waiver or

relinquishment for the future of any terms, covenants, conditions or options,

but the same shall be and remain in full force and effect.

25th:       In

the event that the relation of Landlord and Tenant may cease or terminate by

reason of the re-entry of Landlord under the terms and covenants contained in

this lease or by the ejectment of Tenant by summary proceedings or otherwise,

or after the abandonment of the premises by Tenant, Tenant shall remain liable

and shall pay in monthly payments the rent which accrues subsequent to the

re-entry by Landlord, and Tenant shall pay as damages for the breach of the covenants

contained in this lease the difference between the rent reserved and the rent

collected and received, if any, by Landlord, during the remainder of the

unexpired term, such difference of deficiency between the rent reserved and the

rent collected, if any, shall became due and payable in monthly payments during

the remainder of the unexpired term, as the amounts of such difference or

deficiency shall from time to time be ascertained, but in no event shall Tenant

be entitled to any monthly excess where the monthly rent collected exceeds the

rent reserved.

26th:       At

the request of either party, the other shall execute a short statement of this

lease for purposes of recording the existence of the within lease.

27th:       This

lease and the obligation of Tenant to pay rent and perform all of the other

terms, covenants and conditions on part of Tenant to be performed shall in

nowise be affected, impaired or excused because Landlord is unable to supply or

is delayed to supplying any service expressly or impliedly to be supplied or is

unable to make, or is delayed in making any repairs, additions, alterations or

decorations or is unable to supply or is delayed in supplying any equipment or

fixtures if Landlord is prevented or delayed from so doing by reason of governmental

preemption in connection with a National Emergency declared by the President of

the United States or in connection with any rule, order or regulation of any

department or subdivision thereof of any governmental agency or by reason of

the conditions of supply and demand which have been or are affected by war or

other emergency, or any other matter beyond the control of Landlord, including

but not limited to weather conditions.

 

5

 

28th:       Landlord

covenants that said Tenant, on paying the rent and performing the terms,

covenants and conditions of this lease, shall and may peacefully and quietly

have, hold and enjoy the premises for the leased term provided however, that

this covenant shall be conditioned upon the retention of title to the premises

by Landlord.  However, this covenant

shall be binding upon each successive owner of the leased premises and shall

run with the land.

29th:       The

covenants and agreements contained in this lease are binding on the parties and

upon their respective successors, heirs, executors, administrators and assigns.

30th:       Words

used in the singular shall include words in the plural where the text of this

instrument so requires.

31st:        Landlord

reserves the right to post signs on the premises during the last six months of

the lease term, advertising the premises for sale or for lease.

32nd:      If

Tenant fails to make any payment or to perform any act requited of Tenant by

the provisions of this lease, then Landlord shall have the right at any time to

make such payment or perform such act and, in exercising this right, to incur

the necessary and incidental costs and expenses. This shall not imply any

obligation on the part of Landlord to make any payment or to perform any act

required of Tenant. The exercise of the right shall not constitute a release of

any obligation or waiver of any default. Tenant shall also pay as additional

rent all attorney’s fees and other expenses incurred by Landlord in enforcing

any of Tenant’s obligations under this lease. Any payments made and costs and

expenses incurred in connection with these rights shall be reimbursed by Tenant

within ten days after demand together with interest of 3% per annum over the

prime rate of The National State Bank, Elizabeth, N.J., computed from the date

of payment.

33rd:       Tenant

shall furnish Landlord with financial statements and such other data as may be

reasonably required by Landlord or by Landlord’s lending institution, if any,

which information shall be kept confidential.

34th:       If

Tenant is a foreign corporation, it shall, on or before the commencement date

of this lease, qualify with the Secretary of State of New Jersey to do business

as a corporation in the State of New Jersey and shall forthwith submit proof

thereof to Landlord.

35th:       If

Tenant shall file or there be filed against Tenant a petition in bankruptcy or

arrangement, or if Tenant be adjudicated a bankrupt, or make an assignment for

the benefit of creditors, or take advantage of any insolvency act, such event

shall be deemed a default by Tenant.

36th:       Tenant

shall permit Landlord or Landlord’s representatives to show the premises to

persons interested in leasing the demised premises, during the last six months

of the term of the lease.

37th:       The

consent of Landlord to the placement of any sign or signs shall not be

unreasonably withheld. Any sign or signs consented to by Landlord to be placed

in or about the demised premises shall be placed at Tenant’s own costs, expense

and risk, and such sign or signs shall be in compliance with all rules, laws,

regulations and ordinances. Any sign so placed by Tenant shall be maintained at

Tenant’s cost and expense, and Tenant shall and does hereby 

 

6

 

indemnify and save harmless Landlord against any

damage, loss or injury of any kind whatsoever caused by such sign or signs.

38th:       All

notices required in this lease shall be in writing.  All notices required to be given to Tenant shall be given by

registered or certified mail, return receipt requested, addressed to Tenant at

the demised premises. All notices required to be given to Landlord shall be

given by registered or certified mail, return receipt requested, addressed to

Landlord at the address designated to this lease or to such other parsons or

places as may be hereafter designated by Landlord. The mailing of any notice in

the manner set forth shall be construed as service of such notice.

39th:       Tenant

shall pay for all gas, fuel, electricity, sewer and all other utilities in addition

to the provisions contained in paragraph 21st. Landlord shall not be liable for

any interruption or delay in any of the foregoing services for any reason.

40th:       Tenant

shall keep the demised premises and all parts thereof in a clean and sanitary

condition and free from trash. Tenant further agrees to keep the sidewalks of

the demised premises clean and free of snow and ice.

41st:        No

receipt of money by Landlord from any receiver, trustee or custodian or debtors

in possession shall reinstate, continue or extend the term of this lease or

affect any notice given to Tenant or to any such receiver, trustee, custodian

or debtor in possession or operate as a waiver or estoppel of the right of

Landlord to recover possession of the demised premises for any of the causes

therein enumerated by any lawful remedy, and the failure of Landlord to enforce

any covenant or condition by reason of its breach by Tenant after notice shall

not be deemed to void or affect the right of Landlord to enforce the same

covenant or condition on the occasion of any subsequent default or breach.

42nd:      If,

because of any act of Tenant, any mechanic’s lien, security instrument or other

lien be filed against the demised premises, Tenant shall, at Tenant’s own cost

and expense, cause the same to be cancelled and discharged of record or bonded

within ten (10) days after the filing thereof and, further, Tenant shall

indemnity and save harmless Landlord from and against any and all costs,

expenses, claims, loss or damages, including reasonable counsel fees, resulting

therefrom or by reason thereof.

43rd:       In

addition to any other legal remedies for violation or breach by or on the part

of Tenant or by any undertenant or by anyone holding or claiming under Tenant

or any one of them, of the restrictions, agreements or covenants of this lease

on the part of Tenant to be performed or fulfilled, such violation or breach

shall be restrainable by injunction at the suit of Landlord.

44th:       The

rights and remedies given to Landlord in this lease are distinct, separate and

cumulative remedies, and no one of them, whether or not exercised by Landlord,

shall be deemed to be in exclusion of any of the others.

45th:       Tenant

releases Landlord from any liability arising out of a loss covered by any fire

insurance and extended coverage insurance policy or policies insuring the

premises, and Tenant shall promptly supply Landlord with a certificate from its

insurance carrier or carriers waiving the right of subrogation.

 

7

 

46th:       Tenant

shall, at Tenant’s own cost and expense, in addition to the requirements set

forth in paragraph 2nd, maintain the heating system, air conditioning system,

if any, and other systems, fixtures and equipment belonging to Landlord and

contained in the demised premises, and at the expiration of the term, deliver

the foregoing in good order and condition, damages by the elements and ordinary

wear and tear excepted.

47th:       If

the demised premises has a sprinkler system, Tenant shall, at Tenant’s own cost

and expense, in addition to the requirements set forth in paragraph 2nd,

maintain the sprinkler system in the demised premises. All water utility

charges and fees with regard to the sprinkler system shall be paid by Tenant.

It the Board of Fire Underwriters or any state or municipal government requires

or recommends any changes, made by reason of Tenant’s business of location or

partitions, trade fixtures or other contents, or such changes, alterations or

additional sprinkler heads or other equipment become necessary to prevent

imposition of a charge against the full allowance for a sprinkler system in the

fire insurance rate as fixed by the Board of Fire Underwriters, Tenant shall,

at Tenant’s own cost, promptly make and supply such changes, modifications,

additional sprinkler heads or other equipment. At the expiration of the term,

Tenant shall deliver the sprinkler system in good order and condition, damages

by the elements and ordinary wear and tear excepted.

48th:       (a)           Tenant shall, at its sole expense,

provide and maintain the following insurance coverages on the demised

premises.  Loss or damage by fire, as

the amount may be increased from time to time as the value of the property is

increased, in the Landlord’s sole determination; (ii) loss or damage by

other risks contemplated within extended coverage endorsements (as such

endorsements are customarily written in the State of New Jersey;

(iii) rent insurance; (iv) such other risks as shall be reasonably

required by Landlord (including but not limited to “all risks” coverage, flood

insurance liability insurance; (v) vandalism and malicious mischief

insurance.  This insurance shall

(a) name Landlord as the insured and provide that any loss shall be payable

to Landlord; (b) provide that no act of Tenant shall impair the rights of

Landlord to receive and collect the insurance proceeds; and (c) provide

that the rights of Landlord shall not be diminished because of any additional

insurance carried by Tenant for Tenant’s own account.

(b)           Tenant

shall provide and maintain, at Tenant’s own expense, general liability

insurance with responsible insurance companies authorized to do business in the

State of New Jersey and approved by Landlord, covering claims for bodily

injury, death, or property damage occurring in or about the demised premises,

including any sidewalks adjoining the demised premises.  This insurance shall not be less than

$3,000,000* for any single occurrence, and shall include Tenant as an insured.  Tenant shall promptly deliver to Landlord a

certificate of general liability insurance, together with proof of payment of

the insurance premium for the policy. 

The certificate of insurance shall provide that the insurer shall give

Landlord at least 30 days notice prior to any cancellation, modification

or amendment to the policy.*inclusive of umbrella coverage.

(c)           Tenant

shall not do anything in the premises or bring anything into the premises or

permit anything to be brought into or kept in the premises which will in any

way increase the rate of insurance for the building in which the premises is a

part, nor use all or any part of the premises for any purpose which would cause

an increase in the rate of insurance in the 

 

8

 

building in which the premises is a part.  In the event of any such increase, Tenant

shall pay Landlord promptly upon demand, as additional rent, the amount of the

increase.

49th:       (a)           Tenant shall pay Landlord as

additional rent all the real estate taxes and in lieu of real estate tax

payments (hereinafter collectively referred to as “real estate taxes”) assessed

and levied by the Township of Maplewood and the Township of Irvington against

the demised premises.

 

(b)           All

real estate taxes which shall become payable for the first and last year of the

lease term shall be apportioned pro rata between Landlord and Tenant in

accordance with the respective number of months during which each party is in

possession of the demised premises in the respective tax year.

 

(c)           Tenant

shall pay Landlord the real estate taxes on the first day of each month during

the lease term commencing on the day the first installment of rent shall be

due, a sum equal to 1/12th of the real estate taxes which shall be due and

payable during the then current calendar year. 

If at the time of payment the amount of real estate taxes for the then

calendar year is not known, Tenant shall pay Landlord 1/12th of the

real estate taxes paid during the preceding year; and promptly after

ascertaining the amount of the real estate taxes for the then calendar year,

adjustments shall be made and Tenant shall pay and difference between the sums

paid by Tenant for the real estate taxes and the actual amount of the calendar

year real estate taxes, or Landlord shall credit any excess against the next

payments becoming due.*

 

(d)           For

the purposes of creating a fund with which to meet the annual real estate

taxes, Tenant shall upon the demand of Landlord, pay Landlord an amount equal

to 4/12th of the real estate taxes.

 

50th:       Tenant

has examined the premises and accepts them in their present condition and

without any representations or guarantees, whether express, implied or

otherwise, on the part of Landlord as to the present or future condition of the

premises.

51st:        The

performance by Landlord of any obligation of Tenant under the lease shall not

be construed to be a modification of the lease, nor shall it create any

obligation on the part of Landlord with respect to any performance required of

Tenant under the lease, whether Landlord’s performance was undertaken with the

knowledge that Tenant was obligated to perform or whether Landlord’s

performance was undertaken as a result of mistake, inadvertence or

neglect.  Landlord shall not be liable

for any damage or injury to any person or any property, or for any loss of

business of Tenant, or for any other damages caused by or resulting from steam,

electricity, gas, water, rain, ice, snow, cold, heat, or any leak or flow from

or into any part of the building, or any other cause or happening arising out

of Landlord’s performance of any obligation of Tenant under the lease, whether

or not caused by the negligence of Landlord or Landlord’s agents, employees or

invitees.

* If

Tenant desires to take steps to reduce the assessed value of said demised

premises, Landlord will make available to Tenant such information as is

available concerning said property, and will execute such documents and papers

as may be necessary or convenient in connection therewith, but any such

proceedings shall be conducted at the expense of the Tenant.

 

9

 

52nd:      There

are no oral understandings, terms or conditions, and neither party has relied

upon any other representation, express or implied, not contained in this

agreement.  All prior understandings,

terms or conditions are deemed merged in this agreement.  This agreement cannot be changed or

supplemented orally.

53rd:       Tenant

expressly waives any and all rights or redemption granted by or under any

present or future laws in the event of Tenant being dispossessed or removed

from the demised premises because of Tenant’s default under this lease.

54th:       If

any provision of this lease shall be invalid or unenforceable, the remaining

provisions of this lease shall not be affected thereby, and each and every

provision of this lease shall be enforceable to the fullest extent permitted by

law.

55th:       Tenant

shall indemnify, defend and save harmless Landlord from all fines, suits,

procedures, claims and actions of any kind arising out of or in any way

connected with the wrongful or improper use or occupancy of the demised

premises other than those uses which are expressly permitted pursuant to the

terms of this lease or arising by reason of any breach of or nonconformance

with any term, condition or covenant of the lease.

56th:       Upon

the reasonable request of either party at any time or from time to time,

Landlord and Tenant agree to execute, acknowledge and deliver to the other,

within 10 days after request, a written instrument duly executed and

acknowledged, (a) certifying that this lease has not been modified and is in

full force and effect, or, if there has been a modification of this lease, that

this lease is in full force and effect as modified, stating such modification;

(b) specifying the dates to which the annual fixed rent and additional rent

have been paid; (c) stating whether or not, to the knowledge of the party

executing such instrument, the other party is in default; and (d) stating the

commencement date of this lease.  Notwithstanding

the foregoing, the 10-day period shall be extended with respect to a request

from Tenant to Landlord in the event Landlord’s response to it shall be delayed

by a mortgagee holding a mortgage on the demised premises.

57th:       If

at any time during the term of this lease a tax or charge be imposed by the

State of New Jersey or the county or municipality in which the premises are

located, pursuant to any future law, which tax or charge shall be based on the

rent paid by Tenant to Landlord, Tenant shall pay Landlord as additional rent,

upon demand of Landlord, such tax or charge. 

The foregoing shall not require payment by Tenant of any income taxes

assessed against Landlord or any capital levy, franchise, estate, succession,

inheritance or transfer taxes due from Landlord.

58th:       Landlord

shall not be liable for failure to give possession of the premises upon the

commencement date of the lease term because the premises are not ready for

occupancy, the prior tenant is wrongfully holding over, any other party is

wrongfully in possession, or for any other reason.  In such event the lease term and rent shall not commence until

possession of the premises is given to or is available for Tenant and the lease

term shall be extended accordingly.

59th:       If

Tenant fails to pay when due, any monthly installments of rent, additional rent

or other sums due from Tenant under the lease, then Tenant shall pay Landlord,

as additional rent, without demand, a late charge of 5% per month of the sums

due for the first and second months that the sums remain unpaid, and 1 1⁄2% for

each succeeding month thereafter that the 

 

10

 

sums due remain unpaid.  The late charge shall be computed from the due date to the date

of payment.

60th:       (a)           It is the intention of the parties

that this commercial lease is a “net lease” and that Landlord shall receive the

rent from Tenant undiminished from all costs, expenses, and obligations, of

every kind, relating to premises, which shall arise or become due during the

lease term, all of which shall be paid by Tenant except as otherwise

specifically provided in this lease and except as to any payment due under any

present or future mortgage placed on premises by Landlord.

(b)           Tenant

covenants to pay Landlord all rent without notice or demand and without

abatement, deduction, or setoff, and irrespective of any claim of Tenant

against Landlord, and this covenant shall be deemed independent of any other

covenants, terms, and conditions of this lease.

(c)           No

payment by Tenant or receipt by Landlord of any amount less than the full rent

provided in this lease shall be deemed anything other than a payment on account

of the earliest rent due; no endorsement or statement on any check or any

letter accompanying any check or payment of rent shall be deemed an accord and

satisfaction of Landlord; and Landlord may accept any such check or payment

from Tenant without prejudice to Landlord’s right to recover the balance of

rent or to pursue any other right or remedy provided under this lease or by

law.

61st:        This

agreement shall be governed by, construed, and enforced in accordance with the

laws of the State of New Jersey and this agreement shall be construed as a

“commercial lease.”

62nd:      Tenant

shall look solely to the equity of Landlord in the premises for the

satisfaction or assertion of any rights and remedies of Tenant, if any, against

Landlord, in the event of breach by Landlord of any of the terms, conditions

and covenants of this lease.

63rd:       This

agreement contains all the terms, conditions and covenants made between the

parties and may not be modified, changed or terminated in whole or in part,

orally or in any other manner than by an agreement in writing, signed by all

the parties.  This document contains the

entire agreement and understanding between the parties.  Neither the acceptance of the keys nor any

other act or thing done by Landlord or any agent or employee of Landlord during

the lease term shall be deemed to be an acceptance of a surrender of the

premises, excepting only an agreement in writing signed by Landlord accepting

or agreeing to accept such a surrender.

64th:       Tenant

shall not use or allow the premises to be used for any unlawful purpose, or in

violation of any Certificate of Occupancy affecting the use of all or any part

of the premises, or which may, in law, create a nuisance, public or

private.  Tenant shall not keep or allow

anyone to keep any property on the premises which shall be unlawful or in

violation of any Certificates of Occupancy affecting the use of all or any part

of the premises, or which may, in law, create a nuisance, public or

private.  Tenant shall not leave or

allow anyone else to leave any property on the premises at the expiration or

any sooner termination of this lease, which shall be unlawful or 

 

11

 

in violation of any Certificate of Occupancy affecting

the use of all or any part of the premises, or which may, in law, create a

nuisance, public or private.

65th:       With

respect to paragraph 1st of this Lease, Tenant shall pay the fixed

rent as follows:

(a)   For the portion of the term commencing

January 1, 1987 and ending December 31, 1989 the annual fixed rent of

$143,064.00 payable in twelve (12) equal monthly installments of $11,922.00 in

advance on the first day of each month.

(b)   For the portion of the term commencing on the

fourth anniversary date of commencement and ending on the eighth anniversary

date of commencement, the greater of (a) the annual fixed rent of $143,064.00; or

(b) the annual fixed rent of $143,064.00 plus an amount equal to the product of

$143,064.00 times the percentage increase in the Consumer Price Index (“CPI”)

for the period beginning in the month three months prior to the month in which

the lease commenced and the month three months prior to the month on which the

fourth anniversary date of the lease occurs. 

Notwithstanding the foregoing, the fixed rent for this period shall be

no less than 120% of the fixed rent in the prior [illegible] year period and no

greater than 132% of the fixed rent in the prior four year period.

(c)   For the portion of the term commencing on the

eighth anniversary date of commencement and ending on the twelfth anniversary

date of commencement, the greater of (a) the annual fixed rent during the prior

four year period or (b) the annual fixed rent during the prior four year period

plus an amount equal to the product of said annual fixed rent times the

percentage increase in the CPI for the period beginning in the month three months

prior to the month on which the fourth anniversary date of the lease occurs and

the month three months prior to the month on which the eighth anniversary

date  of the lease occurs.  Notwithstanding the foregoing, the fixed

rent for this period shall be no less than 120% of the fixed rent in the prior

four year period and no greater than 132% of the fixed rent in the prior four

year period.

(d)   For the portion of the term commending on the

twelfth anniversary date of commencement and ending on December 31, 2001 the

greater of (a) the annual fixed rent during the prior four year period or (b)

the annual fixed rent during the prior four year period plus an amount equal to

the product of said annual fixed rent times the percentage increase in the CPI

for the period beginning in the month three months prior to the month on which

the eighth anniversary date of the lease occurs and the month three months

prior to the month on which the twelfth anniversary date of the lease

occurs.  Notwithstanding the foregoing,

the fixed rent for this period shall be no less than 120% of the fixed rent in

the prior four year period and no greater than 132% of the fixed rent in the

prior four year period.

As used herein, CPI shall mean the “Consumer Price

Index (all items) for the Metropolitan New York City area published

periodically by the Bureau of Labor Statistics, United States Department of

Labor”, or, if not published, such substitute index as most closely

approximates said index, published by any public or private agency.  If, for any reason, said index or substitute

index does not publish information for the months designed herein, the parties

agree to use the months closest in time to those designated herein for which

there is published information.

 

12

 

66th:       Tenant

shall comply with the requirements of the New Jersey Economic Development

Authority (EDA) and the provisions of the Internal Revenue Code applicable to

the tax exempt bonds which were or may be issued with respect to the Premises,

as well as furnish such information, certifications and reports as may from

time to time be reasonably requested or required by EDA and the Internal

Revenue Service.

67th:       (a)  Tenant

shall, at Tenant’s own expense, comply with the Environmental Cleanup

Responsibility Act, N.J.S.A. 13:K-6 et seq. and the regulations

promulgated thereunder (“ECRA”).  Tenant

shall, at Tenant’s own expense, make all submissions to, provide all

information to, and comply with all requirements of, the Bureau of Industrial

Site Evaluation (“the Bureau”) of the New Jersey Department of Environmental

Protection (“NJDEP”).  Should the Bureau

or  any other division of NJDEP

determine that a cleanup plan be prepared and that a cleanup be undertaken

because of any spills or discharges of hazardous substances or wastes at the

premises which occur during the tem of this lease, then Tenant shall, at

Tenant’s own expense, prepare and submit the required plans and financial

assurances, and carry out the approved plans. 

Tenant shall not be responsible for cleanup of any discharges of

hazardous substances or wastes occurring prior to the commencement of Tenant’s

lease term.  Tenants obligations under

this paragraph shall arise if there is any closing, terminating or transferring

of operations of an industrial establishment at the premises pursuant to

ECRA.  At no expense to Landlord, Tenant

shall promptly provide all information requested by Landlord for preparation of

non-applicability affidavits and shall promptly sign such affidavits when

requested by Landlord.  Tenant shall

indemnify, defend and save harmless Landlord from all fines, suits, procedures,

claims and actions of any kind arising out of or in any way connected with any

spills or discharges of hazardous substances or wastes at the premises which

occur during the term of this lease; and from all fines, suits, procedures,

claims and actions of any kind arising out of Tenant’s failure to provide all

information, make all submissions and take all actions required by the ECRA

Bureau or any other division of NJDEP. 

Tenant’s obligations and liabilities under this paragraph shall continue

so long as Landlord remains responsible for any spills or discharges of

hazardous substances or wastes at the premises which occur during the term of

this lease.  Tenant’s failure to abide

by the term of this paragraph shall be restrainable by injunction.  Provided this lease is not previously

cancelled or terminated by either party or by operation of law, Tenant shall

commence its submission to the Bureau in anticipation of the end of the lease

term no later than 1 year prior to the expiration of the lease term.  Tenant shall promptly furnish to Landlord

true and complete copies of all documents, submissions and correspondence

provided by Tenant to the Bureau and all documents, reports, directives and

correspondence provided by the Bureau to Tenant.  Tenant shall also promptly furnish to the Landlord true and

complete copies of all sampling and test results obtained from samples and

tests taken at and around the premises.

(b)   Tenant shall promptly provide Landlord with

all documentation and correspondence provided to NJDEP pursuant to the Worker

and Community Right to Know Act, N.J.S.A. 34:5A-1 et seq. and the

regulations promulgated thereunder (“Right to Know Act”).

(c)   Tenant shall promptly supply to Landlord all

reports and notices made by Tenant pursuant to the Hazardous Substance

Discharge—Reports and Notices Act, N.J.S.A. 13:K-15 et  seq. and

the regulations promulgated thereunder (“Reports and Notices Act”).

 

13

 

(d)   Tenant shall promptly supply Landlord with

any notices, correspondence and submissions made by Tenant to NJDEP, the United

States Environmental Protection Agency (EPA), the United States Occupational

Safety and Health Administration (OSHA), or any other local, state or federal

authority which requires submission of any information concerning environmental

matters or hazardous wastes or substances.

(e)   Prior to the commencement date of Tenant’s

lease term, Tenant shall supply to Landlord an affidavit of an officer of

Tenant (“Officer’s Affidavit’), setting forth Tenant’s S.I.C. number and a

detailed description of the operation and processes Tenant will undertake at

the premises, organized in the form of a narrative report, including a

description and quantification of hazardous substances and wastes generated,

manufactured, refined, transported, treated, stored, handled or disposed of at

the premises.   Following commencement

of the lease term, Tenant shall notify Landlord by way of Officer’s Affidavit

as to any changes in Tenant’s operation, S.I.C. number or use and generation of

hazardous substances and wastes, by way of a supplemental Officer’s Affidavit.  Tenant shall also supplement and update

Officer’s Affidavit upon each anniversary of the commencement of the lease

term.

68th:       (a)  At the commencement of the lease term the

plumbing, electric, heating, air conditioning and sprinkler systems, if any,

shall be in good working order.

69th:       Tenant

shall, at Tenant’s expense, have the right to:

(a)   Install a garage door on the South face of

the building.

(b)   Install partitions and dividing walls for

offices on the second floor of the building.

70th:       (a)  If all of the demised premises are acquired

or condemned by eminent domain for public or quasi-public use or purpose, the

term of this lease shall terminate form the date of vesting of title or taking

of possession; Tenant shall have no claim against Landlord for the value of any

unexpired term of the lease; Tenant shall be liable for the payment of rent

only to the date on which Tenant surrenders possession of the demised premises;

and any advance rent paid by Tenant shall be returned by Landlord.

(b)   If 15% or more than 14% of the building on

the demised premises is acquired or condemned by eminent domain for public or

quasi-public use or purpose, then at the option of either Landlord or Tenant,

upon notice to the other party given 30 days prior to the date of vesting of

title or taking of possession, the lease may be terminated on the date of

vesting of title or taking of possession; if terminated, Tenant shall have no

claim against Landlord for the value of any unexpited term of the lease; Tenant

shall be liable for the payment of rent only to the date on which Tenant

surrenders possession of the demised premises; and any advance rent paid by

Tenant shall be retuned by Landlord.  If

neither party exercises the option to terminate the lease, then the lease shall

remain in force; but the rent shall abate in the proportion that the number of

square feet of floor space in the building taken or condemned bears to the

total under of square feet of floor space in the building prior to the taking

or condemnation, and Landlord shall, with due diligence, restore the building

on the remaining portion of the demised premises, at Landlord’s own expense.

 

14

 

(c)   If less then 15% of the building on the

demised premises is acquired or condemned by eminent domain for public or

quasi-public use or purpose, then the lease shall remain in force, but from the

date of vesting of title or taking of possession the rental shall abate in the

proportion that the number of square feet of floor space in the building taken

or condemned bears to the total under of square fee of floor space in the

building prior to the taking or condemnation, and Landlord shall, with

reasonable diligence, restore the building on the remaining portion of the

demised premises, at Landlord’s own expenses.

(d)   The entire amount awarded or received in any

condemnation proceeding or acquisition shall belong to Landlord.

71st:        Landlord

and Tenant hereby represent to each other that the only real estate broker

instrumental in effecting this lease is: 

Atlantic Real Estate and Investments Corp., Paramus, NJ.

72nd:      Tenant

understand that simultaneously with the execution and delivery of this lease

Landlord will become obligated to pay a commission to a real estate broker for

effecting this lease.  If Landlord

terminates the lease by reason of Tenant’s default in the performance of the

lease terms, then Landlord shall have the right to apply that part or all of

the proceeds of Tenant’s security deposit, referred to in paragraph 17th, to

reimburse Landlord for the full real estate commission incurred by Landlord in

this Lease transaction.

73rd:       (a)  The Tenant may not assign this lease or sub

lease all or any part of the Leased Premises without first advising the

Landlord in writing of its intention to assign or sublease the premises as

aforementioned, which notice shall be in writing by certified mail, return

receipt requested, and shall contain detailed information concerning:  the names of the proposed assignee or

subtenant (and if a privately held corporation, the names and percentage

ownership of all principal stockholders); a description identifying the space

to be sublet (which shall include appropriate means of ingress and egress); a

financial statement of said proposed assignee or subtenant; a detailed

description of the nature of the business of the proposed assignee or subtenant

and its intended use of the premises; a detailed description of all terms and

conditions of the proposed assignment or subletting; and such other information

concerning the proposed assignment or subletting as Landlord may reasonably

request.  Landlord shall then have

thirty (30) days after the later of (a) receipt of Tenant’s request for consent

or (b) receipt of all information concerning the proposed assignee or subtenant,

within which to elect to recapture the premises and terminate the lease and to

release Tenant from its obligations hereunder. 

If Landlord shall elect to terminate the lease, Landlord shall advise

Tenant of its election in writing, by certified mail, return receipt requested,

prior to the expiration of the aforesaid thirty (30) day period.  If Landlord shall elect to terminate the

lease, the lease shall terminate on the last day of the forty-fifth day

succeeding such notice of termination. 

In such event, rent and all other charges due shall be paid by Tenant to

Landlord effective up to and including the date of termination.  Tenant agrees that it will surrender

possession and deliver the premises to the Landlord on the date of termination

hereinabove provided.

(b)   In the

event Landlord does not elect to recapture the premises and terminate the lease

as hereinabove provided, then in that event the Tenant may assign this lease,

sublease all or any portion or part of the Leased Premises, provided (a) the Tenant

gives the Landlord notice of any 

 

15

 

such assignment and any assignees (but not sublessees)

undertake in writing to assume the terms and conditions of this lease; (b) that

with respect to any said assignment Landlord shall receive the full amount of

the consideration, if any, to be paid to Tenant by the assignee in connection

with the assignment including any amount in excess of fair market value paid

for furniture, furnishings, fixtures and equipment; and with respect to any

subletting, Landlord shall receive the full amount of any rent to be paid to

Tenant by its subtenant in excess of the rent due from Tenant to Landlord; (c)

the proposed assignee or sublessee shall receive the approval of the municipality

or other governmental authority to use and occupy the premises; and (d) in any

event, the Tenant shall remain directly and primarily liable for the

performance of the terms and conditions of this lease.  Landlord reserves the right, at all times, to

require and demand that the primary Tenant hereunder pay and perform the terms

and conditions of this lease. 

Notwithstanding the foregoing, no such assignment or subletting shall be

made to any tenant who shall occupy the premises for any use which would create

a greater likelihood of damage, wear or tear to the building or Leased Premises

than that of Tenant’s use; which would adversely affect the character of the

building; which would in any way violate the applicable ordinances, rules and

regulations of applicable governmental boards and bureaus having jurisdiction

thereof, or of the carrier of the fire insurance or other insurance to be

provided under this Lease; which would increase the cost of insurance to the

Leased Premises, building or contents of other tenants; all of the foregoing to

be determined in Landlord’s sole discretion.

(b)           In

the event Tenant or its assignee shall undertake any further and subsequent

assignments, Tenant’s right to assign shall be subject to the same required

prior consent of Landlord in accordance with the same terms and conditions as

provided in Paragraph 73 above.

(c)           Tenant

shall pay to Landlord the amount of reasonable legal fees incurred by Landlord

in connection with Tenant’s request to assign or sublet hereunder.

74th:       Whenever

Landlord’s consent or approval is required under this Lease, such consent shall

not be unreasonably withheld or delayed.

75th:       Tenant

shall have the right of first refusal to match any purchase offer for the

premises which Landlord intends to accept. 

Prior to acceptance, Landlord shall inform the Tenant in writing of the

terms of said offer and Tenant shall have thirty (30) days to inform Landlord

in writing whether it intends to match such offer and purchase the

premises.  If Tenant so elects, it must

close within a reasonable time of said exercise of the right of first refusal.

                In

Witness, the parties have set their hands and seals or caused these presents to

be signed by their proper corporate officers and caused their proper corporate seal

to be affixed, the day and year first above written.

 

16

 

	

  Signed, sealed and delivered

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  In the presence of:

  	

   

  	

   

  	

   

  	

   

  	

   

  	

    /s/ Bernard

  Levere

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  BERNARD LEVERE

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

    /s/

  illegible

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

    /s/ Zelda

  Levere

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  ZELDA LEVERE

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  Attest:

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  PIONEER PHARMACEUTICALS, INC.

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  a corporation, Tenant

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

    /s/

  illegible

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  By:

  	

    /s/

  illegible

  	

   

  
	

   

  	

  Secretary

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  President

  
													

 

17

 

UNCONDITIONAL

GUARANTEE

 

 

Regarding Lease dated as at December 1, 1986

between BERNARD LEVERE and ZELDA LEVERE as Landlord and PIONEER

PHARMACEUTICALS, INC. as Tenant.

The Guarantor hereby unconditionally guarantees to the

Landlord (1) the full and prompt payment of all amounts payable by the Tenant

under the Lease when and as the same shall become due, whether at the stated

time therein, by acceleration or otherwise and (2) the due and timely

performance of all obligations and observance of all covenants of the Tenant

under the Lease (such payment and performance hereinafter collectively referred

to as the “Obligations”).  In the event

any of the Obligations shall not be paid or performed according to their terms,

the Guarantor shall immediately pay, perform or cause the performance of the

same, this guarantee being a guarantee of full payment and performance and not

of collectibility and no way conditional or contingent.  This Guarantee is an absolute, unconditional

and continuing guarantee and is in no way conditioned upon any requirement that

the Landlord first attempt to collect payment or seek performance of any of the

obligations from the Tenant or any other obligor or guarantor, or resort to any

other security or other means of obtaining payment or performance of any of the

Obligations, or upon any other contingency whatsoever.

Upon any default by the Tenant in the full and

punctual payment or performance of the Obligations, the liabilities and

obligations of the Guarantor hereunder, shall, at the option of the Landlord

become forthwith due and payable without demand or notice of any nature, all of

which are expressly waived by the Guarantor. Each and every default in the

payment or performance of the Obligations shall give rise to a separate cause

of action under this Guarantee and separate suits may be brought hereunder as

each cause of action arises.

The Guarantor further agrees, as the principal obligor

and not as a guarantor only, to pay forthwith upon demand, all costs and

expenses (including reasonable attorneys’ fees and disbursements) incurred or

expended in connection with this Guarantee and the Lease and the enforcement

hereof and thereof, together with interest on amounts recoverable under this

Guarantee from the time such amount becomes due until payment thereof at the

default rate provided in the Lease.

The Landlord shall be at liberty, without giving

notice to or obtaining the consent of the Guarantor and without relieving the

Guarantor of any liability hereunder, to deal with the Tenant and with each

other person who now is or after the date hereof becomes liable in any manner

for any of the Obligations, in such manner as the Landlord, in its sole

discretion, deems fit and proper, and to this end, the Guarantor hereby gives

to the Landlord the full authority in its discretion, to do any and all of the

following things, without notice to, or obtaining the consent of, the

Guarantor:

(a)   grant

waivers, extensions, renewals or other indulgences under the Lease;

(b)   waive the

payments or performance of any of the obligations;

(c)   modify or

amend any of the terms, provisions or agreements contained in the Lease;

 

18

 

(d)   vary,

exchange, release or discharge, wholly or partially, or delay in or abstain

from perfecting or enforcing any security or guarantee of the Obligations by

any other person;

(e)   accept

partial payment or performance of any of the Obligations; or

(f)    compromise

or make any settlement or other arrangement with the Tenant or any other

guarantor of the Obligation.

The Guarantor hereby consents to all of the terms and

provision of the Lease, as the same may be from time to time amended or

modified.  The Guarantor hereby

irrevocably waives;

(a)   notice of

acceptance of this Guarantee and notice that credit has been extended by the

Landlord in reliance hereon;

(b)   notice of

any amendment or any change in the terms of the Lease, or any other present or

future agreement relating directly or indirectly thereto;

(c)   notice of

assignment;

(d)   notice of

any default or Event of Default under the Lease, or any other present or future

agreement relating directly or indirectly thereto;

(e)   demand for

performance or observance of an enforcement of any provisions of or any pursuit

or exhaustion of any rights or remedies against the Tenant, or any other

guarantor or obligor who becomes liable in any manner for any of the

Obligations; and

(f)    diligence,

presentment, protest, notice of dishonor and notice of default in the payment

of any amount at any time payable by the Tenant under or in connection with the

Lease.

	

  Attest:

  	

   

  	

  ESSEX CHEMICAL CORPORATION

  
	

   

  	

   

  	

   

  	

   

  
	

    /s/ illegible

  	

   

  	

  By:

  	

    /s/ illegible

  	

   

  
	

   

  	

  Assistant Secretary

  	

   

  	

  President

  
							

 

19EXECUTION COPY

Exhibit 10.34

OPTION TO ASSUME AND EXTEND LEASE

 

WHEREAS,

BERNARD LEVERE and ZELDA LEVERE, as Landlord, and PIONEER PHARMACEUTICALS, INC., as Tenant,

and ESSEX CHEMICAL CORP., as

Guarantor, entered into a Lease (the “Lease”) and Guaranty of Lease dated as at

December 1, 1986, relating to premises known and designated as 191 40th Street,

Irvington, New Jersey (the “Premises”); and

 

WHEREAS,

INTERNATIONAL VITAMIN CORPORATION, as Subtenant, (“IVC”) entered into a sublease (the

“Sublease”) of the Premises as of February 22, 1994; and

 

WHEREAS, IVC desires to obtain an Option to

assume the Lease and extend the term of the Lease;

 

NOW, for the mutual promises contained in

this Option, and other good and valuable consideration,

 

The parties hereby agree

as follows:

 

1.             IVC shall have the Option, provided it is not in default

under the Sublease at the time of the exercise of the Option, and provided

Tenant is not in default under the Lease at the time of the exercise of the

Option, to assume all the obligations of the Lease and become a Co-Tenant with

the Tenant under the Lease.

 

2.             IVC shall give written notice to the Landlord of the

exercise of the Option to assume the Lease by no later than June 30, 2001. Upon

giving written notice to the Landlord, IVC shall be deemed a Co-Tenant under

the Lease, except that its obligation to pay rent from the time of the notice

until December 31, 2001 shall be in the amount and in the manner as provided in

the Sublease.

 

 

1

 

3.             IVC shall have the Option, provided it is not in default

under the Lease or the Sublease at the time of the exercise of the Option, and

provided Tenant is not in default under the Lease at the time of the exercise

of the Option, to extend the Lease for an additional term of five (5) years,

from January 1, 2002 to December 31, 2006 upon the same terms and conditions as

provided in the Lease as modified by this Option except that the annual base

rent during the years of such extension shall be Two Hundred Seventeen Thousand

Three Hundred Fifty ($217,350.00) Dollars.

 

4.             IVC shall have the Option, provided it is not in default

under the Lease and this Option at the time of the exercise of the Option, to

extend the Lease for an additional term of five (5) years, from January 1, 2007

to December 31, 2011 upon the same terms and conditions as provided in the

Lease, as modified by this Option, except that the annual base rent during the

years of such extension shall be as follows:

 

	

  2007

  	

   

  	

  $223,871.00

  	

   

  
	

  2008

  	

   

  	

  $230,587.00

  	

   

  
	

  2009

  	

   

  	

  $237,504.00

  	

   

  
	

  2010

  	

   

  	

  $244,629.00

  	

   

  
	

  2011

  	

   

  	

  $251,968.00

  	

   

  

5.             IVC may not exercise the extension Option provided in

paragraph 4 above unless it shall have timely executed the prior extension

Option provided in paragraph 3 above and is in occupancy and not in default at

the time of the exercise of the subsequent extension of the term.

 

6.             IVC shall, following the extension term provided in

paragraph 4 above, have no further extension Options.

 

7.             IVC shall give written notice to Landlord not less than

six (6) months prior to the last day of the initial term, or the first

extension term, as the case may be, of its election to extend 

 

2

 

the term of the Lease, or the Option shall be deemed

waived.  Time is of the essence with

respect to said elections.  If IVC shall

exercise any such extension Option, the parties will, at the request of either,

execute a document evidencing such extension. If IVC shall exercise any such

extension Option, the references in the Lease to the term of the Lease shall be

deemed to mean the term as extended, except where expressly otherwise provided.

 

8.             (a)           IVC

acknowledges that, prior to its taking possession of the Premises, it inspected

the Premises and satisfied itself as to its environmental condition and

suitability for IVC’s intended use. Landlord represents and warrants that, to

the best of Landlord’s knowledge, there have been no spills or discharges of

Toxic or Hazardous Substances during Landlord’s ownership of the Premises, that

to the best of Landlord’s knowledge there are no underground tanks at the

Premises which were required to be registered pursuant to any environmental law

in effect at the commencement of the Sublease, and that during Landlord’s

ownership of the Premises Landlord has received no notices of violations of any

environmental laws concerning the Premises. Except for the foregoing

representations and warranties, Landlord makes no warranties or

representations, either oral or express, as to the environmental or other

condition of the Premises and as to all such matters IVC acknowledges that it

accepts the Premises AS IS as of the commencement of the Sublease.

 

(b)           IVC warrants that it will fully

comply with all applicable federal, state, and local laws, regulations,

administrative rulings, orders, ordinances, and the like, as they now exist or

may hereafter be amended or come into existence, pertaining to the protection

of the environment and natural resources, including but not limited to ECRA

(and its successor statute ISRA) and those regulating the handling and disposal

of waste materials, upon taking possession of the Premises and thereafter.

 

3

 

(c)           IVC agrees to indemnify, and hold

harmless the Landlord and their successors and assigns (the “Indemnified

Parties”) from, and if requested in writing by any Indemnified Party, IVC shall

defend (with counsel satisfactory to the Landlord) any Indemnified Party

against, any fines, claims, orders, demands, reasonable costs, causes of

action, judgments, suits, losses, reasonable expenses (including, without

limitation, reasonable technical consultant fees, court expenses, reasonable

expenses paid to other professionals and reasonable legal fees), and damages arising:

(1) out of IVC’s or any of IVC’s permitted or non-permitted assignees or

sublessee’s breach of the foregoing warranty which occurs during or after the

Sublease term and the Lease term as may be extended by this Option except to

the extent same is attributable to the acts of an Indemnified Party and/or (2)

during or after the Sublease term and the Lease term as may be extended by this

Option, out of or in any way relating to the presence, release or disposal of

Toxic or Hazardous Substances on or from the Premises during the Sublease term

and the lease term as may be extended by this Option, unless the Toxic or

Hazardous Substances are present on the Premises solely as a direct result of

the acts of an Indemnified Party. This indemnity shall include, without

limitation, Landlord’s reasonable costs incurred in connection with:

 

(i)            Toxic or Hazardous Substances

present or suspected to be present in the soil, groundwater or sail vapor on or

under the Premises subsequent to the commencement of the Sublease;

 

(ii)           Toxic or Hazardous Substances that

migrate, flaw, percolate, diffuse, or in any way move onto or under the

Premises, subsequent to the commencement of the Sublease; or

 

4

 

(iii)          Toxic or Hazardous Substances present

on or under the Premises as a result of any discharge, dumping or spilling

(accidental or otherwise) onto the Premises subsequent to the commencement of

the Sublease by any person, corporation, partnership or entity other than the

Landlord or its agents.

 

The indemnification

provided by this Subsection shall also specifically cover, without limitation,

reasonable costs incurred in connection with any investigation of site

conditions or any cleanup, remedial, removal, or restoration work required by

any federal, state or local governmental agency or political subdivision or

other third party because of the presence or suspected presence of Toxic or

Hazardous Substances in the soil, groundwater or soil vapor on or under the

Premises, unless the Toxic or Hazardous Substances are present solely as a

direct result of the actions of an Indemnified Party. Those costs may include,

but are not limited to, damages for loss or restriction on use of rentable or

usable space or of any amenity of the Premises, sums paid in settlements of

claims, reasonable attorneys’ fees, reasonable consultants’ fees and reasonable

experts’ fees. The foregoing environmental indemnity shall be governed by the

laws of the State of New Jersey, and shall survive the expiration or

termination of this Option and the Lease.

 

(d)           As used in the foregoing Subsection,

“Toxic or Hazardous Substances” shall be interpreted broadly to include, but

not be limited to, any material or substance that is defined or classified

under federal, state or local laws as: (i) a “hazardous substance” pursuant to

Section 101 of the Comprehensive Environmental Response, Compensation and

Liability Act, 42 U.S.C. ¶9601(14), Section 311 of the Federal Water Pollution

Control Act, 33 U.S.C. §1321, as or now hereafter amended; (ii) a “hazardous

waste” pursuant to Section 1004 or Section 3001 of the Resource Conservation

and Recovery Act, 42 U.S.C. §§6903, 6921, as now or hereafter 

 

5

 

amended; (iii) a toxic pollutant under Section 307(a)

(1) of the Federal Water Pollution Control Act, 33 U.S.C. §1317(a)(1); (iv) a

“hazardous air pollutant” under Section 112 of the Clean Air Act, 42 U.S.C.

§7412, as now or hereafter amended; (v) a “hazardous material” under the Hazardous

Materials Transportation Uniform Safety Act of 1990, 49 U.S.C. App. §1802(4),

as now or hereafter amended; (vi) toxic or hazardous pursuant to regulations

promulgated now or hereafter under the aforementioned laws; or (vii) presenting

a risk to human health or the environment under other applicable federal, state

or local laws, ordinances or regulations, including but not limited to the New

Jersey Environmental Cleanup Responsibility Act (ECRA, N.J.S.A. 13:1K-6, et

seq.) (and its successor statute ISRA), as now or as may be passed or

promulgated or amended in the future. “Toxic or Hazardous Substances” shall

also mean any substance that after release into the environment and upon

exposure, ingestion, inhalation or assimilation, either directly from the

environment or directly by ingestion through food chains, will or may

reasonably be anticipated to cause death, disease, behavior abnormalities,

cancer or genetic abnormalities. “Toxic or Hazardous Substances” specifically

includes, but is not limited to, asbestos, polychlorinated biphenyls (“PCBs”);

petroleum and petroleum-based derivatives, and urea formaldehyde.

 

(e)           In the event IVC receives any notice,

letter, complaint, order, demand or other communication from a governmental

entity or other third party involving an environmental matter addressed by this

paragraph 8, IVC shall provide the Landlord with written notice of same within

five (5) business days after IVC is first put on notice of same. To the extent

not being performed by IVC the Landlord shall have the right (but not the

obligation) to perform any investigation, containment, environmental sampling

and monitoring, and, to the extent same is not being performed by IVC, to

perform abatement, remedial or cleanup actions on the Premises, 

 

6

 

all upon giving written notice to IVC provided that

any such actions shall be carried out in a good and workmanlike manner and in

consultation with IVC so as to reasonably minimize interference with IVC’s business

operations. IVC agrees to provide such access to the Premises as may be

reasonably necessary to allow the Landlord and its representative to carry out

said actions.

 

(f)            This paragraph 8 shall survive the

expiration or termination of this Option and the Lease.

 

9.             At the end of the term of the Sublease or Lease or any

extension Option, or upon IVC vacating the premises before the end of such term

or being in default as to any term of the Sublease, Lease or this Option, IVC

shall, at its sole cost and expense remove all its fixtures and equipment from

the Premises and restore the Premises to the condition at the time of the

beginning of the Lease, except for ordinary wear and tear.

 

10.           Nothing in this Option shall affect,

release, or waive any obligations of PIONEER PHARMACEUTICALS, INC., as Tenant, or ESSEX CHEMICAL CORP., as Guarantor, of the Lease.

 

IN WITNESS, the parties have set their hands and

seals or caused these presents to be signed by their proper corporate officers

and caused their proper corporate seal to the affixed as of February         , 1995.

 

7

 

	

  Signed, sealed

  and delivered

  	

   

  
	

  in the presence

  of:

  	

  /s/ Bernard

  Levere

  	

   

  
	

   

  	

  BERNARD LEVERE

  
	

     /s/

  Herbert Holmes

  	

   

  	

   

  
	

   

  	

    /s/

  Zelda Levere

  	

   

  
	

   

  	

  ZELDA LEVERE

  
	

   

  	

   

  	

   

  
	

  Attest:

  	

  INTERNATIONAL

  VITAMIN

  	

   

  
	

   

  	

  CORPORATION, a corporation,

  	

   

  
	

   

  	

  Sub-Tenant

  	

   

  
	

   

  	

   

  	

   

  
	

     /s/

  Peter Olesinski

  	

   

  	

  By 

  	

  /s/ Arthur Edell

  	

   

  
	

   

  	

  Secretary

  	

   

  	

  President

  
								

 

8

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