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exv10w2

EXECUTION COPY

BIODEL INC.

EXECUTIVE EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made as of March 26, 2010 by and between
Biodel Inc., a Delaware corporation (the “Company”), and Solomon S. Steiner, Ph.D. an individual
(“you”) (and, together, “Parties”).

     NOW THEREFORE, in consideration of your acceptance of continued employment, the Parties agree
to be bound by the terms contained in this Agreement as follows:

     1. Engagement. Effective March 29, 2010 (the “Effective Date”), you are ceasing to be the
Company’s President and Chief Executive Officer and becoming the Founder and Chief Scientific
Officer of the Company. You will report directly to the Company’s Chief Executive Officer (the
“CEO”). In your capacity as Chief Scientific Officer, you will head the Company’s discovery
research functions and have such other responsibilities, duties and authorities as may be specified
and mutually agreed upon with the CEO consistent with the role of Chief Scientific Officer. These
responsibilities may include serving as an officer and director of subsidiaries of the Company.

     2. Commitment. During and throughout your employment with the Company, you must devote
substantially all of your full working time and attention to the Company and you must not engage in
any employment, occupation, consulting or other similar activity absent the prior written consent
of the Company’s Board of Directors (the “Board”); provided, however, that you may (i) serve in any
capacity with any professional, community, industry, civic (including governmental boards),
educational or charitable organization, (ii) serve on up to two for-profit entity boards of
directors and up to two advisory boards, with the Board’s prior written consent, (iii) deliver
lectures, fulfill speaking engagements, and/or teach at educational institutions, subject to your
confidentiality obligations and to the CEO’s prior approval with respect to any lectures, speeches,
or other public announcements or presentations that involve the intellectual property of the
Company or its business operations, and (iv) subject to the Company’s conflict of interest
policies, make investments in other businesses and manage your and your family’s personal
investments and legal affairs; provided that any such activities described in clauses (i)-(iv)
above do not materially interfere with the performance of your duties for the Company and do not
otherwise violate this Agreement. You will perform your services under this Agreement primarily at
the Company’s offices in Danbury, Connecticut or at such place or places as you and the Board may
agree. You understand and agree that your employment will require travel from time to time.

     3. At-Will Employment. Beginning with the Effective Date, your employment with the Company
will be at-will, meaning either you or the Company can end your employment at any time and for any
or no reason, subject to the terms of Section 6 hereof.

     4. Cash and Incentive Compensation.

          (a) Base Salary. During your employment hereunder, you will receive a base salary at a monthly
rate of $33,333.33, annualizing to $400,000 (as revised under this

 

 

Agreement, the “Base Salary”).
The Company will pay your Base Salary periodically in arrears not less frequently than monthly in
accordance with the Company’s regular payroll practices as in effect from time to time. The Board
will review your Base Salary for increase (but not for decrease) no less frequently than annually.
If increased, the increased Base Salary will become the Base Salary for all purposes of this
Agreement and will not thereafter be decreased without your written consent, which may be withheld
for any reason or no reason.

          (b) Incentive Bonus. Upon meeting the applicable performance criteria established by the
Compensation Committee of the Board (the “Compensation Committee”) in its sole discretion, you will
be eligible to receive an annual incentive bonus (the “Annual Bonus”) for a given fiscal year of
the Company targeted at an amount equal to 50% of your Base Salary in effect at the Effective Date
or, for subsequent years, at the beginning of such fiscal year (the “Target Bonus”). For
performance exceeding such applicable performance criteria in the sole judgment of the Compensation
Committee, the Annual Bonus may be increased. The Annual Bonus, if any, will be paid when other
executives receive their bonuses under comparable arrangements but, in any event, no later than
March 15 of the year following the fiscal year with respect to which it is earned. The applicable
performance criteria for each fiscal year of the Company shall be determined by the Compensation
Committee no later than 90 days after the commencement of that fiscal year.

          (c) Equity Awards. You will be eligible for grants of option or other equity compensation in
future years, all at the sole discretion of the Compensation Committee.

          (d) Parachute Provisions. Your compensation under and beyond this Agreement is subject to
Exhibit A hereto until the third anniversary of the Effective Date.

     5. Employee Benefits.

          (a) Employee Welfare and Retirement Plans. You will, to the extent eligible, be entitled to
participate at a level commensurate with your position in all employee welfare benefit and
retirement plans and programs the Company provides to its executives in accordance with the terms
thereof as in effect from time to time.

          (b) Business Expenses. Upon submission of appropriate documentation in accordance with Company
policies, the Company will promptly pay, or reimburse you for, all reasonable business expenses
that you incur in performing your duties under this Agreement, including travel, entertainment,
professional dues and subscriptions, as long as such expenses are reimbursable under the Company’s
policies. Any payments or expenses provided in this Section 5(b) will be paid in accordance with
Section 7(c).

          (c) Vacation. You will be entitled to vacation equal to four weeks per calendar year (accrued
ratably on a monthly basis or otherwise in accordance with the standard written policies of the
Company with regard to executives), to be taken at such times as you shall reasonably determine.

          (d) Attorneys Fees. The Company will pay up to $12,000 for you to obtain legal services in
connection with reviewing this Agreement for execution. The payment provided in this Section 5(d)
will be paid in accordance with Section 7(c).

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     6. Termination of Employment.

          (a) General. Subject in each case to the provisions of this Section 6 and the other
provisions of this Agreement relating to our respective rights and obligations upon termination of
your employment, nothing in this Agreement interferes with or limits in any way the Company’s right
to terminate your employment at any time, for any reason or no reason, with or without notice, and
nothing in this Agreement confers on you any right to continue in the Company’s employ. If your
employment ceases for any or no reason, you (or your estate, as applicable) will be entitled to
receive (in addition to any compensation and benefits you are entitled to receive under Section
6(b) below): (i) any earned but unpaid Base Salary and, to the extent consistent with general
Company policy, accrued but unused vacation through and including the date of termination of your
employment to be paid in accordance with the Company’s regular payroll practices and with
applicable law but no later than the next regularly scheduled pay period, (ii) any earned but
unpaid Annual Bonus for the fiscal year preceding the fiscal year in which your employment ends, to
be paid on the date such Annual Bonus otherwise would have been paid if your employment had
continued, (iii) unreimbursed business expenses in accordance with the Company’s policies for which
expenses you have provided appropriate documentation, and (iv) any amounts or benefits to which you
are then entitled under the terms of the benefit plans then sponsored by the Company in accordance
with their terms (and not accelerated to the extent acceleration does not satisfy Section 409A of
the Internal Revenue Code of 1986, as amended (“Section 409A” of the “Code”)). Notwithstanding any
other provision in this Agreement to the contrary, you will be entitled to severance, if any,
solely through the terms of this Section 6, unless another written Board-approved agreement between
you and the Company, or other Board-approved arrangement, expressly provides otherwise. You agree
that no prior arrangement providing for severance to you remains in effect after the Effective
Date.

          (b) Severance. If your employment with the Company ends for any reason other than the
Company’s termination of your employment for Cause or your death, in addition to the amounts
covered by Section 6(a), the Company will pay to you the following, subject to compliance with
Section 6(b)(iv):

          (i) Cash Severance. The Company will pay to you in cash an amount equal to the sum
of (1) twice your then-current Base Salary, plus (2) two times the amount of your
target Annual Bonus for the fiscal year of the Company in which you are terminated,
plus (3) the amount of your target Annual Bonus for the fiscal year of the Company
in which you are terminated multiplied by a fraction, the numerator of which is twelve minus
the number of whole calendar months remaining in the fiscal year of the Company in which you
are terminated, and the denominator of which is 12, paid in equal installments over a
24-month period beginning as provided under Section 6(b)(iv) or at such later date as
Section 7(a) provides.

          (ii) Benefits. Subject to compliance with Section 6(b)(iv), if you are eligible and
elect to continue receiving group medical insurance under the continuation coverage rules
known as COBRA, the Company will continue to pay the share of the premium for such coverage
that it pays for active and similarly-situated employees who receive the same type of
coverage until the earlier of (i) the end of the 24th month after your employment ends or
(ii) the date your COBRA continuation coverage expires. Subject to compliance with Section
6(b)(iv), you will also receive outplacement services,

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provided that such services may not
continue more than 12 months following the termination of your employment.

          (iii) Equity Compensation. In addition to the compensation and benefits described in
Section 6(b)(i) and (ii) above and subject to the release required under Section 6(b)(iv),
any outstanding equity compensation awards will fully and immediately vest with respect to
any amounts that would have vested if you had remained employed for an additional 24 months
and, as applicable, become exercisable, provided that the Board will have the right to
suspend exercises or sales with respect to such equity compensation pending satisfaction of
the release requirement, and provided further that the vesting will not accelerate the
distribution of shares underlying equity awards if such acceleration would trigger taxation
under Section 409A(a)(1)(B). The acceleration by 24 months will subsequently increase to
full vesting if your termination without Cause or resignation occurs within 12 months
following a Change in Control, subject to the release required under Section 6(b)(iv). The
treatment in this Section 6(b)(iii) applies notwithstanding any contrary provisions in the
applicable equity compensation plans or any award agreement, provided that you will be
entitled to any more favorable treatment provided to you under the terms of the plans or
agreements. For the purpose of this Agreement, “Change in Control” means a Change in
Control Event (as defined under Section 10(c) of the Company’s 2010 Stock Incentive Plan
(the “2010 Plan”) and taking into account the restrictions in Section 10(d) of the 2010
Plan).

          (iv) Release. To receive any severance benefits provided for under this Agreement, you
must deliver to the Company a general release of claims arising prior to the date of
termination and relating to your employment by the Company in a customary form provided by
the Company, which must become irrevocable within 60 days following the date of your
termination of employment, provided, that in no event shall the release purport to release
claims to the compensation described in Section 6(a) and (b) and, if applicable, Section
4(d) or other continuing rights under this Agreement. Subject to Section 7, any such
severance benefits that (i) are conditioned in any part on such a release of claims and (ii)
would otherwise be paid (assuming the release is given) prior to the last day on which the
release could become irrevocable assuming your latest possible execution and delivery of the
release (such last day, the “Release Effective Date”) shall be paid, if ever, only on the
Release Effective Date, even if your release becomes irrevocable before that date. The
Company may elect to make such payment up to thirty (30) days prior to the Release Effective
Date, however. You must continue to comply with the covenants under Sections 8 and 9 in all
material respects to continue to receive severance benefits.

          (c) Termination for Cause.

          (i) General. If the Company terminates your employment for Cause, you will be
entitled only to the payments described in Section 6(a) (excluding clause (ii) of Section
6(a)). You will have no further right to receive any other compensation or benefits after
such termination or resignation of employment, except as determined in accordance with the
terms of the employee benefit plans or programs of the Company or as required by law.

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          (ii) Cause. For purposes of this Agreement, “Cause” means termination of
your employment because of (i) fraud, (ii) willful and material misrepresentation not
including any exercise of business judgment in good faith relating to the performance of
your duties to the Company, which misrepresentation results in or is likely to result in a
material adverse effect on the Company; (iii) material instances of theft or embezzlement of
assets of the Company; (iv) your conviction, or plea of guilty or nolo contendere to any
felony; (v) material failure to follow the Company’s conduct and ethics policies that have
been provided or made available to you, which failure results in or is likely to result in a
material adverse effect on the Company; (vi) your material breach of this Agreement; and/or
(vii) your continued failure to attempt in good faith to materially perform your duties as
reasonably assigned by the Board. Before terminating your employment for Cause under
clauses (ii), (iii), (v), (vi), or (vii) above, the Company will specify in writing to you
the nature of the act, omission, refusal, or failure that it deems to constitute Cause and
give you 30 days after you receive such notice to correct the situation (and thus avoid
termination for Cause), unless the Board agrees to further extend the time for correction,
provided that the Board can shorten or eliminate the 30 day period for clauses other than
(vii) if it determines that the Cause is impossible to correct. In addition, you may elect
to resign in response to an assertion of Cause under clause (vii) and your resignation will
be treated instead under Section 6(b).

          (d) Further Effect of Termination on Officer Positions. If your employment ends for any
reason, you agree that you will cease immediately to hold any and all officer positions you then
have with the Company or any affiliate, absent a contrary direction from the Board (which may
include either a request to continue such service or a direction to cease serving upon notice). You
hereby irrevocably appoint the Company to be your attorney to execute any documents and do anything
in your name to effect your ceasing to serve as an officer of the Company and any affiliate, should
you fail to resign following a request from the Board to do so. A written notification signed by a
director or duly authorized officer of the Company that any instrument, document or act falls
within the authority conferred by this subsection will be conclusive evidence that it does so. The
Company will prepare any documents, pay any filing fees, and bear any other expenses related to
this section.

     7. Effect of Section 409A of the Code.

          (a) Six Month Delay. If and to the extent any portion of any payment, compensation or other
benefit provided to you in connection with your employment termination is determined to constitute
“nonqualified deferred compensation” within the meaning of Section 409A and you are a specified
employee as defined in Section 409A(a)(2)(B)(i), as determined by the Company in accordance with
its procedures, by which determination you hereby agree that you are bound, such portion of the
payment, compensation or other benefit shall not be paid before the earlier of (i) the expiration
of the six month period measured from the date of your “separation from service” (as determined
under Section 409A) or (ii) the tenth day following the date of your death following such
separation from service (the “New Payment Date”). The aggregate of any payments that otherwise
would have been paid to you during the period between the date of separation from service and the
New Payment Date shall be paid to you in a lump sum in the first payroll period beginning after
such New Payment Date, and any remaining payments will be paid on their original schedule.
Payments subject to the foregoing

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up to six month delay will bear interest for the period they are
delayed at the Wall Street Journal prime rate based on the interest rate in effect on the date of
employment termination, compounded monthly and paid in the first payroll period beginning after the
New Payment Date.

          (b) General 409A Principles. For the purposes of determining when amounts otherwise payable
on account of your termination of employment under this Agreement will be paid, which amounts
become due because of your termination of employment, “termination of employment” or words of
similar import, as used in this Agreement, shall be construed as the date that you first incur a
“separation from service” for purposes of Section 409A on or following termination of employment.
For purposes of this Agreement, each amount to be paid or benefit to be provided will be construed
as a separate identified payment for purposes of Section 409A, and any payments that are due within
the “short term deferral period” as defined in Section 409A or are paid in a manner covered by
Treas. Reg. Section 1.409A-1(b)(9)(iii) will not be treated as deferred compensation unless
applicable law requires otherwise. Neither the Company nor you will have the right to accelerate
or defer the delivery of any such payments or benefits except to the extent specifically permitted
or required by Section 409A. This Agreement is intended to comply with the provisions of Section
409A and this Agreement will, to the extent practicable, be construed in accordance therewith.
Terms defined in this Agreement will have the meanings given such terms under Section 409A if and
to the extent required to comply with Section 409A. In any event, the Company makes no
representations or warranty and will have no liability to you or any other person, other than with
respect to payments made by the Company in violation of the provisions of this Agreement, if any
provisions of or payments under this Agreement are determined to constitute deferred compensation
subject to Code Section 409A but not to satisfy the conditions of that section.

          (c) Expense Timing. Payments with respect to reimbursements of expenses will be made in the
ordinary course and, in any case, on or before the last day of the calendar year following the
calendar year in which the relevant expense is incurred. The amount of expenses eligible for
reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses
eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year, and the
right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another
benefit.

8. Confidentiality, Disclosure, and Assignment

          (a) Confidentiality. Except as may be required by law, you will not, during or after your
employment with the Company, publish, disclose, or utilize in any manner any Confidential
Information obtained while employed by the Company other than on behalf of the Company. If your
employment with the Company ends, you will not, without the Company’s prior written consent, retain
or take away any drawing, writing or other record in any form containing any Confidential
Information. For purposes of this Agreement, “Confidential Information” means information or
material of the Company that is not generally available to or used by others unaffiliated with the
Company, or the utility or value of which is not generally known, whether or not the underlying
details are in the public domain, including:

          (i) information or material relating to the Company and its business as conducted or
anticipated to be conducted; business plans; operations; past, current or anticipated
products, services, or software; customers or prospective customers; strategic

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partners
and/or collaborators, price lists and all other pricing information; licensing arrangements;
research, engineering, development, manufacturing, purchasing, accounting, or marketing
activities;

          (ii) information or material relating to the Company’s inventions, improvements,
discoveries, “know-how,” technological developments, or unpublished writings or other works
of authorship, or to the materials, apparatus, processes, formulae, plans or methods used in
the development, manufacture or marketing of the Company’s products or services;

          (iii) information on or material relating to the Company that when received is marked
as “proprietary,” “private,” or “confidential”;

          (iv) the Company’s trade secrets;

          (v) information or material relating to the Company and its databases, modules,
products, programs, product improvements, product enhancements and/or developments, designs,
specifications, processes, methods, techniques, operations, projects, plans, chemical
compounds, chemical or biological materials, engineering data, clinical or technological
data, research data, financial data, personnel data, and other confidential agreements or
documents (including, but not limited to, clinical trial protocols and unpublished patent
applications); and

          (vi) any similar information of the type described above that the Company obtained from
another party and that the Company treats as or designates as being proprietary, private or
confidential, whether or not owned or developed by the Company.

Notwithstanding the foregoing, “Confidential Information” does not include any information that is
properly published or in the public domain; provided, however, that information that is published
by or with your aid outside the scope of employment or contrary to the requirements of this
Agreement will not be considered to have been properly published, and therefore will not be in the
public domain for purposes of this Agreement.

          (b) Business Conduct and Ethics. During your employment with the Company, you will not engage
in any activity that you are or should have been aware is substantially likely to materially
conflict with the Company’s best interests, and you will comply in all material respects with the
Company’s policies and guidelines pertaining to business conduct and ethics.

          (c) Disclosure. You will disclose promptly in writing to the Company all inventions,
discoveries, software, writings and other works of authorship that you created, made, conceived,
discovered, reduced to practice or wrote jointly or singly on Company time or on your own time
during your employment with the Company (“Developments”), provided that the invention, improvement,
discovery, software, writing or other work of authorship is capable of being used by the Company in
its business, and all such inventions, improvements, discoveries, software, writings and other
works of authorship shall belong solely to the Company.

          (d) Current Assignments. You agree to assign and do hereby assign to the Company (or any
person or entity the Company designates) all your right, title and interest in

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and to all
Developments and all related patents, patent applications, copyrights and copyright applications.
However, this subsection does not apply to Developments that do not relate to the business or
research and development conducted or planned to be conducted by the Company at the time such
Development is created, made, conceived or reduced to practice and that are made and conceived by
you not during normal working hours, not on the Company’s premises and not using the Company’s
tools, devices, equipment or Confidential Information. You understand that, to the extent this
Agreement shall be construed in accordance with the laws of any state that precludes a requirement
in an employee agreement to assign certain classes of inventions made by an employee, this
subsection shall be interpreted not to apply to any invention that a court rules and/or the Company
agrees falls within such classes. You also hereby waive all claims to moral rights in any
Developments.

          (e) Instruments of Assignment. You will sign and execute all instruments of assignment and
other papers to evidence vestiture of your entire right, title and interest in such inventions,
improvements, discoveries, software, writings or other works of authorship in the Company, at the
Company’s reasonable request and expense, and you will do all acts and sign all instruments of
assignment and other papers the Company may reasonably request relating to applications for
patents, patents, copyrights, and the enforcement and protection thereof. You further agree that if
the Company is unable, after reasonable effort, to secure your signature on any such papers, any
executive officer of the Company will be entitled to execute any such papers as your agent and
attorney-in-fact, and you hereby irrevocably designate and appoint each executive officer of the
Company as your agent and attorney-in-fact to execute any such papers on your behalf, and to take
any and all actions as the Company may reasonably deem necessary or desirable in order to protect
its rights and interests in any Development, under the conditions described in this sentence. If
you are needed, at any time, to give testimony, evidence, or opinions in any litigation or
proceeding involving any patents or copyrights or applications for patents or copyrights, both
domestic and foreign, relating to inventions, improvements, discoveries, software, writings or
other works of authorship you conceived, developed or reduced to practice, you hereby agree to do
so, and if your employment ends, the Company will pay you at an hourly rate mutually agreeable to
the Company and you, plus reasonable traveling or other expenses, subject to Section 7(c).

          (f) Government Obligations. You acknowledge that the Company from time to time may have
agreements with other persons or with the United States Government, or agencies thereof, that
impose obligations or restrictions on the Company regarding inventions made during the course of
work under such agreements or regarding the confidential nature of such work. You agree to be
bound by all such obligations and restrictions that are made known to you and to take all action
reasonably necessary to discharge the obligations of the Company under such agreements.

          (g) Additional Post-Employment Provisions. When your employment ends, you must (x) cease and
not thereafter commence use of any Confidential Information or intellectual property (including any
patent, invention, copyright, trade secret, trademark, trade name, logo, domain name or other
source indicator) if such property is owned or used by the Company and not otherwise licensed to
you; (y) immediately destroy, delete, or return to the Company, at the Company’s option, all
originals and copies in any form or medium (including memoranda, books, papers, plans, computer
files, letters and other data) in your possession or control (including any of the foregoing stored
or located in your office, home, laptop or other

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computer, whether or not Company property) that
contain Confidential Information or otherwise relate to the business of the Company, except that
you may retain only those portions of any personal notes, notebooks and diaries that do not contain
Confidential Information; and (z) notify and fully cooperate with the Company regarding the
delivery or destruction of any other Confidential Information of which you are or become aware to
the extent such information is in your possession or control. Notwithstanding anything elsewhere
to the contrary, you may retain (and not destroy) (x) information showing your compensation or
relating to reimbursement of expenses that you reasonably believe are necessary for tax purposes
and (y) copies of plans, programs, policies and arrangements of, or other agreements with, the
Company addressing your compensation or employment or termination thereof.

          (h) Survival. The obligations of this Section 8 (other than Section 8(b)) will survive the
expiration or termination of this Agreement and your employment.

     9. Noncompetition and Nonsolicitation.

          (a) General. The Parties recognize and agree that (a) you have been and are remaining a
senior executive of the Company, (b) you have received, and will in the future receive, substantial
amounts of the Company’s Confidential Information, (c) the Company’s business is conducted on a
worldwide basis, and (d) provision for noncompetition and nonsolicitation obligations by you is
critical to the Company’s continued economic well-being and protection of the Company’s
Confidential Information. In light of these considerations, this Section 9 sets forth the terms and
conditions of your obligations of noncompetition and nonsolicitation during and subsequent to the
termination of this Agreement and/or the cessation of your employment for any reason.

          (b) Noncompetition.

               (i) Unless the Company waives or limits the obligation in accordance with Section
9(b)(ii), you agree that during employment and for (i) a period of 24 months following your
cessation of employment, if you are terminated by the Company without Cause or you resign
(and the Company provides the benefits to which you are entitled under Section 6(b)); or
(ii) a period of 12 months following your cessation of employment if you are terminated by
the Company for Cause (the “Noncompete Period”), you will not directly or indirectly, alone
or as a partner, equityholder, officer, director, manager, or employee of any other firm or
entity, provide the same or similar services as you provided to the Company to any business
that competes with any part of the Company’s (or any of its subsidiaries’) business as and
where conducted as of the date of such termination of employment. For purposes of this
clause (i), “equityholder” does not include the passive, beneficial ownership of less than
5% of the combined voting power of all issued and outstanding voting securities of a
publicly held corporation whose stock is traded on a major stock exchange. Also for
purposes of this clause (i), “the Company’s business” means the discovery, development and
commercialization of innovative treatments for diabetes and other endocrine disorders based
on the delivery of insulin and other peptide hormones by oral, sublingual, or injectable
routes of administration. The Noncompete Period will be further extended by any period of
time during which you are in violation of Section 9(b) or (c).

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          (ii) At its sole option the Company may, by written notice to you at any time within
the Noncompete Period, waive or limit the time and/or geographic area in which you cannot
engage in competitive activity.

          (c) Nonsolicitation of Employees and Consultants. During your employment and during the
Noncompete Period, you must not, directly or indirectly, individually or on behalf of any
individual or entity, (a) hire or offer to hire as an employee or engage or offer to engage the
services of any individual or entity who you are aware is then employed by or who provides services
to the Company, including those who ceased to be employed or provide services within six months
before the date of proposed hiring or engagement (to the extent, in the case of any consultant,
such engagement would require the consultant to materially diminish or otherwise limit his, her, or
its services to the Company), or (b) solicit, aid or induce any individual or entity who you are
aware is then employed by or who provides services to the Company, including those who ceased to be
employed or provide services within six months before the date of proposed hiring or engagement, to
reduce or terminate his, her, or its services to the Company and its subsidiaries, to accept
employment with, or render services to or with, any individual or entity unaffiliated with the
Company (provided that nothing in this Section 9(c) prohibits you from, directly or indirectly,
engaging in any general solicitations, so long as your solicitation does not specifically target
any of the individuals or entities who were employed by or who provided services to the Company
during the period prohibited above).

          (d) Survival. The obligations of this Section 9 survive the expiration or termination of this
Agreement and your employment.

     10. Enforcement. The restrictions contained in Sections 8 and 9 are necessary for the
protection of the business and goodwill of the Company and you agree that you consider them to be
reasonable for such purpose. You agree that any material breach of Sections 8 and 9 is likely to
cause the Company substantial and irrevocable damage that is difficult to measure. Therefore, in
the event of any such breach or threatened breach, you agree that the Company, in addition to such
other remedies as may be available, shall have the right to obtain an injunction from a court
restraining such a breach or threatened breach and the right to specific performance of the
provisions of this Agreement and you hereby waive the adequacy of a remedy at law as a defense to
such relief and any requirement of the Company to post a bond, and you will be deemed to have
expressly waived any rights you may have had to payments under Section 6(b).

     11. Indemnification. In addition to any indemnification provided by the Company’s
organizational documents, the Company will enter into an indemnification agreement with you as a
director in the form used for other directors, provided, that such indemnification
agreement shall also indemnify you with respect to your service as an officer of the Company. This
Section 11 will survive the termination or expiration of this Agreement and your employment.

	 	 	12. Miscellaneous.

          (a) Notices. All notices required or permitted under this Agreement shall be in writing and
shall be deemed effective upon personal delivery or three business days following deposit in a
United States Post Office, by certified mail, postage prepaid, or one business day after it is sent
for next-business day delivery via a reputable nationwide overnight courier service in the case of
notice to the Company to its address set forth in the introductory paragraph hereto and in the case
of notice to you to the current address on file with the Company. Either Party

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may change the
address to which notices are to be delivered by giving notice of such change to the other Party in
the manner set forth in this Section 12(a).

          (b) No Mitigation. You are not required to seek other employment or otherwise mitigate the
value of any severance benefits contemplated by this Agreement, nor will any such benefits be
reduced by any earnings or benefits that you may receive from any other source. Notwithstanding
any other provision of this Agreement, any sum or sums paid under this Agreement will be in lieu of
any amounts to which you may otherwise be entitled under the terms of any severance plan, policy,
program, agreement or other arrangement sponsored by the Company or an affiliate of the Company.

          (c) Waiver of Jury Trial. TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW THAT CANNOT BE
WAIVED, THE PARTIES HEREBY WAIVE, AND COVENANT THAT THEY WILL NOT ASSERT (WHETHER AS PLAINTIFF,
DEFENDANT OR OTHERWISE), ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT OR OTHER PROCEEDING ARISING
IN WHOLE OR IN PART UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE RELEASE IT CONTEMPLATES,
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, THE
PARTIES AGREE THAT ANY PARTY MAY FILE A COPY OF THIS PARAGRAPH WITH ANY COURT AS WRITTEN EVIDENCE
OF THE KNOWING, VOLUNTARY AND BARGAINED-FOR AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE THEIR
RIGHTS TO TRIAL BY JURY IN ANY PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT,
RELATING TO YOUR EMPLOYMENT, OR COVERED BY THE CONTEMPLATED RELEASE.

          (d) Severability. Each provision of this Agreement must be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Agreement is held to be
prohibited by or invalid under applicable law, such provision will be ineffective only to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or
the remaining provisions of this Agreement. Moreover, if a court of competent jurisdiction
determines any of the provisions contained in this Agreement to be unenforceable because the
provision is excessively broad in scope, whether as to duration, activity, geographic application,
subject or otherwise, it will be construed, by limiting or reducing it to the extent legally
permitted, so as to be enforceable to the extent compatible with then applicable law to achieve the
intent of the Parties.

          (e) Assignment. This Agreement will be binding upon and will inure to the benefit of (i) your
heirs, beneficiaries, executors and legal representatives upon your death and (ii) any successor of
the Company. Any such successor of the Company will be treated as substituted for the Company under
the terms of this Agreement for all purposes. You specifically agree that any assignment may
include rights under the restrictive covenants of Sections 8 and 9. As used herein, “successor”
will mean any person, firm, corporation or other business entity that at any time, whether by
purchase, merger or otherwise, directly or indirectly acquires all or substantially all of the
assets or business of the Company and its subsidiaries.

     None of your rights to receive any form of compensation payable under this Agreement will be
assignable or transferable except through a testamentary disposition or by the laws of

- 11 -

 

descent and distribution upon your death or as provided in Section 10(j). Any attempted assignment,
transfer, conveyance or other disposition (other than as aforesaid) of any interest in your rights
to receive any form of compensation hereunder will be null and void; provided, however, that
notwithstanding the foregoing, you will be allowed to transfer vested shares subject to stock
options (other than incentive stock options within the meaning of Section 422 of the Code) or the
vested portion of other equity awards consistent with the rules for transfers to “family members”
as defined in Securities Act Form S-8. Any other attempted assignment, transfer, conveyance or
other disposition of any interest in your rights to receive any form of compensation hereunder will
be null and void.

          (f) No Oral Modification, Waiver, Cancellation or Discharge. This Agreement may only be
amended, canceled or discharged or any obligations thereunder waived through a writing signed by
you and the Chair of the Compensation Committee or any executive officer of the Company (other than
you) duly authorized either by the Board or the Compensation Committee.

          (g) No Conflict of Interest. You confirm that you have fully disclosed to the Company, to the
best of your knowledge, all circumstances under which you, your immediate family and other persons
who reside in your household have or may have a conflict of interest with the Company. You further
agree to fully disclose to the Company any such circumstances that might arise during your
employment upon your becoming aware of such circumstances.

          (h) Other Agreements. You hereby represent that your performance of all the terms of this
Agreement and the performance of your duties as an employee of the Company does not and will not
breach any agreement to keep in confidence proprietary information, knowledge or data acquired by
you in confidence or in trust prior to your employment with the Company and that you will not
disclose to the Company or induce the Company to use any confidential or proprietary information,
knowledge or material belonging to any previous employer or others. You also represent that you
are not a party to or subject to any restrictive covenants, legal restrictions, policies,
commitments or other agreements in favor of any entity or person that would in any way preclude,
inhibit, impair or limit your ability to perform your obligations under this Agreement, including
noncompetition agreements or nonsolicitation agreements, and you further represent that your
performance of the duties and obligations under this Agreement does not violate the terms of any
agreement to which you are a party. You agree that you will not enter into any agreement or
commitment or agree to any policy that would prevent or hinder your performance of duties and
obligations under this Agreement.

          (i) Disclosure of this Agreement. You acknowledge that the Company may provide others,
including but not limited to customers of the Company and any of your future employers or
prospective business associates, with a copy of this Agreement (or portions thereof) to highlight
your continuing obligations to the Company hereunder.

          (j) Survivorship. The respective rights and obligations of the Company and you hereunder will
survive any termination of your employment to the extent necessary to the intended preservation of
such rights and obligations.

          (k) Beneficiaries. You will be entitled, to the extent applicable law permits, to select and
change the beneficiary or beneficiaries to receive any compensation or benefit payable hereunder
upon your death by giving the Company written notice thereof in a manner consistent

-12-

 

with the terms of any applicable plan documents. If you die, severance then due or other amounts
due hereunder will be paid to your designated beneficiary or beneficiaries or, if none are
designated or none survive you, your estate.

          (l) Withholding. The Company will be entitled to withhold, or cause to be withheld, any amount
of federal, state, city or other withholding taxes or other amounts either required by law or
authorized by you with respect to payments made to you in connection with your employment.

          (m) Company Policies. References in this Agreement to Company policies and procedures are to
those policies and procedures in effect at the Effective Date, as the Company may amend them from
time to time upon reasonable notice to you.

          (n) Governing Law; Venue; Jurisdiction and Service of Process. This Agreement must be
construed, interpreted, and governed in accordance with the laws of Connecticut without reference
to rules relating to conflicts of law. Any action, suit or other legal proceeding arising under or
relating to any provision of this Agreement must be commenced only in a court of the State of
Connecticut (or, if appropriate, a federal court located within the State of Connecticut), and the
Company and you each consent to the jurisdiction of such a court. With respect to any such court
action, the Parties hereto (a) submit to the personal jurisdiction of such courts; (b) consent to
service of process by the means specified under Section 12(a); and (c) waive any other requirement
(whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction,
inconvenient forum, or service of process.

          (o) Entire Agreement. This Agreement and any documents referred to herein represent the entire
agreement of the Parties and will supersede any and all previous contracts, arrangements or
understandings between the Company and you, specifically including but not limited to your
employment agreement with the Company entered into as of December 30, 2004 and amended thereafter,
but not including any prior equity awards as modified by this Agreement.

Signatures on Page Following

-13-

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed and you have
hereunto set your hand to be effective as of the Effective Date.

	 	 	 	 	 	 
	 	 	BIODEL INC.	
	 
	 	 	 	 	
	 

	 	By:	 	 	
	 

	 	 	 	 	
	Date	 	 	 	Brian J.G. Pereira, MD	
	 	 	 	 	Chair, Biodel Compensation Committee	
	 
	 	 	 	 	
	 	 	SOLOMON S. STEINER, Ph.D.	
	 
	 	 	 	 	
	 
	 	 	 	 	 	
	Date
	 	 	 	 	

-14-

 

Exhibit A

Parachute Provisions

CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

     (a) Anything in this Agreement to the contrary notwithstanding and except as set forth below,
if any payment or distribution by the Company or its affiliates to or for your benefit (whether
paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise, but determined without regard to any additional payments required under this Section) (a
“Payment”) would be subject to the excise tax imposed by Section 4999 of the Code or you incur any
interest or penalties with respect to such excise tax (such excise tax, together with any such
interest and penalties, are hereinafter collectively referred to as the “Excise Tax”), then you
will be entitled to receive an additional payment (a “Gross-Up Payment”) in an amount such that
after payment by you of all taxes (including any interest or penalties imposed with respect to such
taxes), including, without limitation, any income taxes (and any interest and penalties imposed
with respect thereto) and Excise Tax imposed upon the Gross-Up Payment, you retain an amount of the
Gross-Up Payment equal to the Excise Tax imposed upon the Payments. This Exhibit A will only apply
to events subject to Section 4999 that occur before the third anniversary of the Effective Date and
while you remain employed by the Company.

     (b) Subject to the provisions of Paragraph (c) below, all determinations required to be made
under this Exhibit A, including whether and when a Gross-Up Payment is required and the amount of
such Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall
be made by such national, certified public accounting firm as you may designate (the “Accounting
Firm”), which shall provide detailed supporting calculations both to the Company and you as soon as
practicable following (but in any event within 30 days after) the receipt of notice from you that
there has been a Payment, or such earlier time as is requested by the Company. If the Accounting
Firm is serving as accountant or auditor for the individual, entity or group effecting the event
triggering the Excise Tax, you must appoint another nationally recognized accounting firm to make
the determinations required hereunder (which accounting firm shall then be referred to as the
Accounting Firm hereunder). The Company shall bear all fees and expenses of the Accounting Firm.
Any determination by the Accounting Firm will be binding upon the Company and the Executive. As a
result of the uncertainty in the application of Section 4999 of the Code at the time of the initial
determination by the Accounting Firm hereunder, it is possible that Gross-Up Payments that the
Company will not have made should have been made (“Underpayment”), consistent with the calculations
required to be made hereunder. If the Company exhausts its remedies pursuant to Paragraph (c)
below and you thereafter are required to make a payment of any Excise Tax, the Accounting Firm will
determine the amount of the Underpayment that has occurred and the Company must promptly pay any
such Underpayment to or for your benefit. Any Gross-Up Payment, as specified under this Agreement,
shall be paid in any event not later than the end of your taxable year next following the taxable
year in which you remit the applicable taxes to the appropriate taxing authority.

-15-

 

     (c) You must notify the Company in writing of any claim by the Internal Revenue Service that,
if successful, would require the payment by the Company of the Gross-Up Payment. Such notification
must be given as soon as practicable but no later than ten business days after you are informed in
writing of such claim and must apprise the Company of the nature of such claim and the date on
which such claim is requested to be paid. You may not pay such claim prior to the expiration of
the 30-day period following the date on which you give such notice to the Company (or such shorter
period ending on the date that any payment of taxes with respect to such claim is due). If the
Company notifies you in writing prior to the expiration of such period that it desires to contest
such claim, you must:

     (i) give the Company any information reasonably requested by the Company relating to such
claim,

     (ii) take such action in connection with contesting such claim as the Company reasonably
requests in writing from time to time, including, without limitation, accepting legal
representation with respect to such claim by an attorney reasonably selected by the Company,

     (iii) cooperate with the Company in good faith in order effectively to contest such claim, and

     (iv) permit the Company to participate in any proceedings relating to such claim; provided,
however, that the Company shall bear and pay directly all costs and expenses (including additional
interest and penalties) incurred in connection with such contest and must indemnify and hold you
harmless, on an after-tax basis, for any Excise Tax or income tax (including interest and penalties
with respect thereto) imposed as a result of such representation and payment of costs and expenses.
Without limitation on the foregoing provisions of this Paragraph (c), the Company will control all
proceedings taken in connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals, proceedings, hearings and conferences with the taxing authority in
respect of such claim and may, at its sole option, either direct you to pay the tax claimed and sue
for a refund or contest the claim in any permissible manner, and you agree to prosecute such
contest to a determination before any administrative tribunal, in a court of initial jurisdiction
and in one or more appellate courts, as the Company determines; provided, however, that if the
Company directs you to pay such claim and sue for a refund, the Company must advance the amount of
such payment to you, on an interest-free basis and must indemnify and hold you harmless, on an
after-tax basis, from any Excise Tax or income tax (including interest or penalties with respect
thereto) imposed with respect to such advance or with respect to any imputed income with respect to
such advance; and further provided that any extension of the statute of limitations relating to
payment of taxes for your taxable year with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. Furthermore, the Company’s control of the contest
will be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
you will be entitled to settle or contest, as the case may be, any other issue raised by the
Internal Revenue Service or any other taxing authority.

If, after you receive an amount advanced by the Company pursuant to Paragraph (c),you become
entitled to receive any refund with respect to such claim, you must (subject to the Company’s

-16-

 

complying with the requirements of Paragraph (c)) promptly pay to the Company the amount of such
refund (together with any interest paid or credited thereon after taxes applicable thereto). If,
after your receipt of an amount advanced by the Company pursuant to Paragraph (c), a determination
is made that you will not be entitled to any refund with respect to such claim and the Company does
not notify you in writing of its intent to contest such denial of refund prior to the expiration of
30 days after such determination, then such advance will be forgiven and will not be required to be
repaid and the amount of such advance will offset, to the extent thereof, the amount of Gross-Up
Payment required to be paid.

-17-Exhibit 10.1

Exhibit 10.1

SECOND AMENDMENT OF LEASE

(10th Floor)

THIS SECOND AMENDMENT OF LEASE (this “Agreement” or “Second Amendment”) is
made as of ________ __, 2010 (the “Effective Date”), by and between 500-512 SEVENTH AVENUE LIMITED PARTNERSHIP, a New
York limited partnership (“Landlord”) having an address c/o Newmark Knight Frank, 125 Park Avenue,
New York, New York 10017, and G-III LEATHER FASHIONS, INC. having an address at 512 Seventh Avenue,
New York, New York, 10018 (“Tenant”).

RECITALS:

WHEREAS, 500-512 Seventh Avenue Associates, Landlord’s predecessor-in-interest, and J. Percy
for Marvin Richards, Ltd., Tenant’s predecessor-in-interest, entered into a certain agreement of
lease dated as of April 31, 1998, as amended by (i) Lease Modification Agreement dated as of
November 25, 2003 (as so amended, collectively the “Lease”) for the 10th Floor (the “Premises”) as
more particularly described in the Lease, in the office building located at and known as 512
Seventh Avenue, New York, New York (the “Building”);

WHEREAS, Tenant desires to extend the term of the Lease for a period of ten (10) years and two
(2) months, and Landlord is willing to extend the term of the Lease upon the terms and conditions
hereinafter set forth; and

WHEREAS, Tenant has requested that Landlord grant Tenant an option to surrender the Premises,
and Landlord is willing to grant such option, on the terms and conditions hereafter set forth.

 

1

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter
contained, the parties hereto by these presents do covenant and agree as follows:

1. Recitals; Definitions. The Recitals set forth above are true and correct and are
incorporated herein and form a part of this Agreement. Unless otherwise defined in this Agreement,
all terms used in this Agreement that are defined in the Lease shall have the meanings ascribed to
them in the Lease.

2. Extension of Term. The term of the Lease is hereby extended for a period of ten
(10) years and two (2) months, commencing on February 1, 2013 and ending on March 31, 2023, or
until the term shall sooner cease or expire as hereinafter provided, by law or otherwise, both
dates inclusive. From and after the date hereof, all references in the Lease to (i) “term” shall
be deemed to mean the term of the Lease as extended by this Agreement, and (ii) “Expiration Date”
shall be deemed to mean March 31, 2023.

3. Fixed Rent for Premises through January 31, 2013. From the Effective Date to
January 31, 2013, Tenant shall pay to Landlord the fixed annual rent (“Fixed Rent”) for the
Premises pursuant to the Lease.

4. Real Estate Taxes and Additional Rent for the Premises through January 31, 2013.
Tenant agrees that, for the period commencing on the Effective Date and ending on January 31, 2013,
Tenant shall continue to pay, as and when provided in the Lease, the tax escalation, and all other
additional rent for the Premises, as set forth in the Lease.

5. Real Estate Taxes and Additional Rent from and after January 31, 2013. During the
extended term, Tenant shall continue to pay the real estate tax escalation, if any, pursuant to
Article Fifty-Eighth of the Lease; however, from and after January 31, 2013 the base tax year shall
be the New York City real estate tax year commencing July 1, 2011 and ending June 30, 2012, and
that the base tax year and each of the comparative years’ taxes shall be calculated with out giving
effect to any tax abatement or exemption.

 

2

 

6. Fixed Rent for Premises — Extended Term. Commencing on February 1, 2013 and during
the balance of the term, Tenant shall pay to Landlord, in accordance with the terms and conditions
set forth in the Lease, Fixed Rent for the Premises in the amounts set forth below:

	 	 	 
	Time Period	 	Fixed Rent per Annum and per Month
	 
	 	 
	February 1, 2013 —

March 31, 2013

	 	$439,448.25 per annum

($36,620.69 per month)
	 
	 	 
	April 1, 2013 —

March 31, 2014

	 	$450,434.46 per annum

($37,536.21 per month)
	 
	 	 
	April 1, 2014 —

March 31, 2015

	 	$461,695.32 per annum

($38,474.61 per month)
	 
	 	 
	April 1, 2015 —

March 31, 2016

	 	$473,237.70 per annum

($39,436.48 per month)
	 
	 	 
	April 1, 2016 —

March 31, 2017

	 	$485,068.65 per annum

($40,422.39 per month)
	 
	 	 
	April 1, 2017 —

March 31, 2018

	 	$497,195.36 per annum

($41,432.95 per month)
	 
	 	 
	April 1, 2018 —

March 31, 2019

	 	$537,285.24 per annum

($44,773.77 per month)
	 
	 	 
	April 1, 2019 —

March 31, 2020

	 	$550,717.37 per annum

($45,893.11 per month)
	 
	 	 
	April 1, 2020 —

March 31, 2021

	 	$564,485.31 per annum

($47,040.44 per month)
	 
	 	 
	April 1, 2021 —

March 31, 2022

	 	$578,597.44 per annum

($48,216.45 per month)
	 
	 	 
	April 1, 2022 —

March 31, 2023

	 	$593,062.38 per annum

($49,421.86 per month)

 

3

 

7. Rent Credit During the Extension Term. Provided that Tenant is not in default
under the terms of this Lease beyond any applicable grace and notice periods as of the date that
the applicable portion of the credit is to be applied (or in such event, at such time as any such
default is cured), Tenant shall be entitled to a credit against the obligation to pay Fixed
Rent, in the following amounts: an aggregate amount of $220,639.66 to be applied as follows:
$18,310.35 for each month commencing February 1, 2013 through November 1, 2013; and $18,768.11 for
each of February 1, 2014 and March 1, 2014.

Notwithstanding the foregoing, the credit shall not be applied against any additional rent,
electricity charges, or other like sums from time to time payable by Tenant pursuant to the Lease,
which amounts shall be paid without abatement in accordance with the terms of the Lease (except as
otherwise set forth herein), nor against any Fixed Rent, if Tenant is in default of its Lease
obligations beyond applicable grace and notice periods on the date the credit installment is to be
applied, but shall be applied against Fixed Rent when such default has been cured.

8. Renewal Option. Tenant shall have one option to renew the term of this Lease, as
to all, but not part of the Premises on all of the terms and conditions set forth in the Lease,
except as set forth below. The renewal option shall be for a term of five (5) years (the
“Renewal Option”), commencing April 1, 2023 and ending March 31, 2028 (the “Renewal
Term”).

(a) The Tenant’s right to renew the term of this Lease shall be conditioned on (i) this Lease
being in full force and effect and no default existing hereunder beyond the expiration of any
applicable notice and cure period at the time of the delivery of the Renewal Notice (as defined
below) or on the effective date of the Renewal Term and (ii) Tenant simultaneously exercising the
Renewal Options under leases for spaces occupied by Tenant in the Building, so that Tenant has
renewed for a term of five (5) years, leases in the Building aggregating no less than eight (8)
full floors. Tenant may exercise the Renewal Option by delivering written notice to Landlord, not
less than twelve (12) calendar months prior to the Expiration Date, (a “Renewal Notice”).

 

4

 

(b) The Renewal Option is personal to the Tenant herein named and may not be severed from this
Lease nor separately sold or assigned.

(c) If Tenant timely exercises the Renewal Option, the term of this Lease shall be renewed for
the Renewal Term. The renewal of this Lease for the Renewal Term shall be on all of the same
terms, covenants and conditions as set forth herein for the extended term, except that during the
Renewal Term:

(i) Landlord shall have no obligation to perform any work in the Premises;

(ii) Tenant shall not be entitled to any Landlord work contribution or Landlord construction
allowance;

(iii) Tenant shall not be entitled to any rent credit, concession or abatement;

(d) Fixed Rent during the Renewal Term shall be as follows:

	 	 	 	 	 	 	 	 	 
	Fixed Rent in Renewal Term for Premises	 
	Time Period	 	Fixed Rent Per Annum	 	 	Fixed Rent Per Month	 
	April 1, 2023 — March 31, 2024
	 	$	652,368.62	 	 	$	54,364.05	 
	April 1, 2024 — March 31, 2025
	 	$	668,677.83	 	 	$	55,723.15	 
	April 1, 2025 — March 31, 2026
	 	$	685,394.78	 	 	$	57,116.23	 
	April 1, 2026 — March 31, 2027
	 	$	702,529.65	 	 	$	58,544.14	 
	April 1, 2027 — March 31, 2028
	 	$	720,092.89	 	 	$	60,007.74	 

plus all other additional rent, including, but not limited to, the real estate tax escalation;

(e) In the Renewal Term, the base tax year set forth in paragraph 9 above shall not be
changed.

13. Landlord’s Liability. The limitation of Landlord’s liability set forth in
Article Thirty-Third of the Lease shall be fully applicable with respect to Landlord’s liability
under this Agreement, and such provisions of the Lease are hereby fully incorporated within this
Agreement by this reference.

 

5

 

14. Brokerage. Landlord and Tenant each warrant to the other that it has not dealt
with any broker or agent in connection with the negotiation or execution of this Agreement, other
than Newmark Knight Frank, which will be compensated by Landlord per separate agreement. Tenant
and Landlord shall each indemnify the other against all costs, expenses, reasonable attorneys’
fees, and other liability for commissions or other compensation claimed by any other broker or
agent claiming the same by, through, or under the indemnifying party.

15. Landlord’s Contribution.

(a) Landlord’s Contribution. Provided that this Lease is in full force and effect and
there is no event of default in Tenant’s obligation to pay Fixed Rent or Additional Rent, and no
other material event of default shall have occurred and is then continuing hereunder (or in such
event, upon the cure of any such default), Landlord shall contribute, as hereinafter provided, an
amount (“Landlord’s Contribution”) equal to a maximum of Three Hundred Forty-Five Thousand, Seven
Hundred and Fifty Dollars ($345,750) toward Tenant’s actual cost of Tenant’s alterations to be
performed by or on behalf of Tenant in the Premises, and “soft costs” incurred in connection with
Tenant’s alterations, including architectural and engineering fees and other soft costs incurred in
connection with Tenant’s alterations. Soft Costs shall mean the cost of space planning,
engineering and design costs, third party construction management fees, permitting, furniture,
moving and other soft costs and data and voice equipment, cabling, wiring and related expenses and
the cost of Tenant’s server room. Landlord shall not be obligated to commence payment of the Work
Contribution for the Premises until February 1, 2013.

 

6

 

(b) Parameters. Any cost of Tenant’s alterations in excess of Landlord’s Contribution
shall be paid entirely by Tenant. Tenant shall be entitled to receive any portion of Landlord’s
Contribution not actually expended by Tenant in the performance of Tenant’s alterations and/or
Soft Costs and/or not paid by Landlord as required herein, as a credit against Fixed Rent for
the Premises, but not additional rent, provided that Tenant has provided to Landlord reasonable
proof that Tenant has paid in full the cost of Tenant’s alterations; and provided further that (i)
Tenant is not then in default of its obligation to pay Fixed or additional rent and that no other
material event of default shall have occurred and be continuing hereunder and (ii) the credit shall
be applied against Fixed Rent due on or before the Final Submission Date, or six (6) months
thereafter, failing which, Tenant shall no longer be entitled to any credit for unpaid portions of
Landlord’s Contribution.

(c) Payment. Landlord shall make progress payments to Tenant or as directed by Tenant
on account of Landlord’s Contribution on a monthly basis in reimbursement of or payment for the
cost of the work performed during the previous month. Each of Landlord’s progress payments will be
limited to an amount equal to (a) the aggregate amounts theretofore paid or payable by Tenant (as
certified by an authorized officer of Tenant) to Tenant’s contractors, subcontractors and material
suppliers (excluding any payments for which Tenant has previously been reimbursed out of previous
disbursements from Landlord’s Contribution), multiplied by (b) a fraction, the numerator of which
is the amount of Landlord’s Contribution, and the denominator of which is the total contract price
(or, if there is no specified or fixed contract price for Tenant’s alterations, then Landlord’s
reasonable estimate thereof) for the performance of all of Tenant’s alterations shown on all plans
and specifications approved by Landlord. Such progress payments shall be made within forty-five
(45) days next following the delivery to Landlord of requisitions therefor, signed by an officer of
Tenant, which requisitions shall set forth the names of each contractor and subcontractor to whom
payment is due, or to whom payment has been made by Tenant, and the amount thereof, and shall be
accompanied by

 

7

 

(i) copies of partial waivers of lien from all contractors, subcontractors and material
suppliers covering all work and materials which were the subject of previous progress payments by
Landlord and Tenant; and (ii) a written certification from Tenant’s architect that the work for
which the requisition is being made has been completed substantially in accordance with the plans
and specifications approved by Landlord. All requisitions shall be submitted on AIA Form G702 and
G703. All requisitions must be submitted no later than February 1, 2015 (hereafter referred to as
the “Final Submission Date”). The final requisition shall not be disbursed until all documentation
required under this Section 15(c) has been delivered to Landlord, together with (A) proof of the
satisfactory completion of all required inspections, if any, and issuance of any required
approvals, permits and sign-offs for Tenant’s alterations by all governmental authorities having
jurisdiction thereover; (B) final “as-built” plans and specifications for Tenant’s alterations as
required pursuant to the Lease; and (C) the issuance of final lien waivers by all contractors,
subcontractors and material suppliers covering all of Tenant’s alterations. Notwithstanding
anything to the contrary set forth in this Lease, (i) the Work Contribution shall be paid by
Landlord in no less than three installments; and (ii) Landlord will not be required to pay to
Tenant any undisbursed portion of the Landlord’s Contribution for any requisition not submitted
prior to the Final Submission Date. However, nothing set forth in the preceding sentence shall
limit Tenant’s right to a credit against Fixed Rent as set forth in Section 15(b) hereof.
Notwithstanding anything to the contrary set forth in this paragraph 15, if Tenant fails to pay
when due any sums due and payable to any of Tenant’s contractors or material suppliers and Tenant
shall fail to remove or bond any lien, such failure shall constitute a material event of default
under the Lease and, without limitation of Landlord’s other rights and remedies hereunder, Landlord
shall have the right, but not the obligation, to promptly pay to such
contractor or supplier all sums so due from Tenant, and sums so paid by Landlord shall be
deemed additional rent and shall be paid by Tenant within ten (10) days after Landlord delivers to
Tenant an invoice therefor.

 

8

 

16. Articles Deleted. Landlord and Tenant agree that Articles Fifty-Fifth,
Seventy-Second, and Seventy-Fourth of the Lease are hereby deleted in their entirety.

17. Notices to Landlord. Article Forty-Eighth of the Lease is hereby amended to
provide that copies of any notices sent to Landlord by Tenant shall be sent to Gerstein Strauss &
Rinaldi, LLP, 57 West 38th Street, 9th Floor, New York, New York 10018, Attention: Victor R.
Gerstein, Esq.

18. Electricity, Water and Sewer. Tenant shall pay to Landlord for electrical use in
each floor of the Premises in accordance with Article 23 below, and water and sewer charges of $102
per month, in accordance with Articles Twenty-Three and Twenty-Four of the Lease.

19. Tenant’s Surrender Option. As long as an Event of Default is not in existence,
and on the condition that Tenant and/or its subsidiaries and/or affiliates have (i) exercised their
Expansion Options contained in leases for other space in the Building, and (ii) have not exercised
a Surrender Option under any other lease for space in the Building, so that Tenant and/or its
subsidiaries and/or affiliates occupy at least twelve (12) separate floors in the Building, Tenant
shall have the one time option (the “Surrender Option”) to surrender the Premises. The surrender
will be effective as of the date set forth in Tenant’s Notice (defined below), which date shall not
be earlier than the sixth (6th) month anniversary of the transmittal of the Tenant’s Notice (the
“Surrender Date”). The Surrender Option shall be exercisable by Tenant’s giving irrevocable
written notice (“Tenant’s Notice”) to Landlord at least six (6) months prior to surrender of the
Premises. If (i) Tenant duly serves the Tenant’s Notice, (ii) Tenant shall pay to

 

9

 

Landlord Fixed Rent and all other sums owed under the Lease and all other leases for spaces occupied by
Tenant and/or its subsidiaries and/or affiliates in the Building through the Surrender Date, and
(iii) Tenant shall surrender vacant possession of the Premises to Landlord on the Surrender Date in
accordance with the provisions of this Lease, free and clear of all tenancies, sub-tenancies and
occupancy rights, then the Lease shall be terminated as to the Floor surrendered as of the
Surrender Date. For sake of clarity, with regard to all of the space occupied by Tenant in the
Building under various leases, Tenant may surrender one Floor.

20. Purpose. The Fourth Article of the Lease is hereby deleted and the following is
substituted therefor:

“Tenant shall use and occupy the demised premises for showroom,
design, general offices and sales offices for sale at wholesale and
not retail, of all apparel and accessories.”

21. Assignment. The Tenth and Seventeenth Articles of the Lease are hereby deleted
and the following is substituted therefor:

“TENTH: (i) Tenant shall not (A) assign or otherwise transfer this
Lease or the term and estate hereby granted, (B) sublet the demised
premises or any part thereof or allow the same to be used or
occupied by others or in violation of Fourth Article hereof, (C)
mortgage, pledge or encumber this Lease or the demised premises or
any part thereof in any manner or permit any lien to be filed
against this Lease, the demised premises or the Building by reason
of any act or omission on the part of Tenant or enter into any
agreement which would permit the filing of a lien by any broker
(except for a broker’s agreement in connection with a proposed
assignment by Tenant of its rights and obligations under the Lease
or a sublease of all or a portion of the demised premises), or (D)
advertise, or authorize a broker to advertise, for a subtenant or an
assignee at a specified rental rate without, in each instance,
obtaining the prior consent of Landlord, except as otherwise
expressly provided in this Article 10. For purposes of this Article
10, (w) the transfer of a majority of the issued and outstanding
capital stock of any corporate tenant, or of a corporate subtenant,
or the transfer of a majority of the total interest in any
partnership tenant or subtenant, however accomplished, whether in a
single

 

10

 

transaction or in a series of related or unrelated transactions,
shall be deemed an assignment of this Lease, or of such sublease, as
the case may be, except that the transfer of the outstanding capital
stock of any corporate tenant, or subtenant, shall be deemed not to
include the sale of such stock by persons or parties, through the
“over-the-counter market” or through any recognized stock exchange,
other than those deemed “insiders” within the meaning of the
Securities Exchange Act of 1934 as amended (provided, however, that
any transfer of stock of Tenant or any affiliate of Tenant by Morris
Goldfarb to members of his immediate family for estate planning
purposes shall not be deemed to effect an assignment of the Lease),
(x) a takeover agreement shall be deemed a transfer of this Lease,
(y) any person or legal representative of Tenant, to whom Tenant’s
interest under this Lease passes by operation of law, or otherwise,
shall be bound by the provisions of this Article 10, and (z) a
modification, amendment or extension of a sublease shall be deemed a
sublease.

(ii) The provisions of subparagraph (i) hereof shall not apply to
transactions with a corporation into or with which Tenant is merged
or consolidated or with an entity to which substantially all of
Tenant’s assets are transferred or, if Tenant is a partnership, with
a successor partnership (provided such merger or transfer of assets
is for a good business purpose and not principally for the purpose
of transferring the leasehold estate created hereby, and provided
further, that either the (x) the assignee has a net worth at least
equal to or in excess of the net worth of Tenant immediately prior
to such merger or transfer, or (y) such assignee delivers a letter
of credit, in the form annexed hereto as Exhibit A, in the amount
equal to the product of (A) one (1) and (B) the then prevailing
monthly Fixed Rent).

(iii) Any assignment or transfer, whether made with Landlord’s
consent as required by subparagraph (i) or without Landlord’s
consent pursuant to subparagraph (ii) hereof, shall be made only if,
and shall not be effective until, the assignee shall execute,
acknowledge and deliver to Landlord a recordable agreement (unless
the assignment shall be a “deemed” assignment by reason of a
transfer of a majority interest in Tenant), in form and substance
reasonably satisfactory to Landlord, whereby the assignee shall
assume the obligations and performance of this Lease and agree to be
personally bound by and upon all of the covenants, agreements,
terms, provisions and conditions hereof on the part of Tenant to be
performed or observed and whereby the assignee shall agree that the
provisions of subparagraph (i) hereof shall, notwithstanding such an
assignment or transfer, continue to

 

11

 

be binding upon it in the future. Tenant covenants that,
notwithstanding any assignment or transfer, whether or not in
violation of the provisions of this Lease, and notwithstanding the
acceptance of fixed annual rent by Landlord from an assignee or
transferee or any other party, Tenant shall remain fully and
primarily liable for the payment of the fixed annual rent and
additional rent due and to become due under this Lease and for the
performance of all of the covenants, agreements, terms, provisions
and conditions of this Lease on the part of Tenant to be performed
or observed.

(iv) The liability of Tenant, and the due performance by Tenant of
the obligations on its part to be performed under this Lease, shall
not be discharged, released or impaired in any respect by an
agreement or stipulation made by Landlord or any grantee or assignee
of Landlord, by way of mortgage, or otherwise, extending the time
of, or modifying any of the obligations contained in this Lease, or
by any waiver or failure of Landlord to enforce any of the
obligations on Tenant’s part to be performed under this Lease, and
Tenant shall continue to be liable hereunder. If any such agreement
or modification operates to increase the obligations of a tenant
under this Lease, the liability under this subparagraph (iv) of the
tenant named in the Lease or any of its successors in interest,
(unless such party shall have expressly consented in writing to such
agreement or modification) shall continue to be no greater than if
such agreement or modification had not been made. To charge Tenant
named in this Lease and its successors in interest after this Lease
shall be assigned, no demand or notice of any default to the named
Tenant shall be required. Tenant and each of its successors in
interest hereby expressly waive any such demand or notice.

(v) (A) Should tenant determine, subject to the provisions of this
Lease, to assign this Lease, other than by an assignment
contemplated by subparagraph (ii) hereof, Tenant shall not less than
forty-five (45) days prior to the effective date of the contemplated
assignment, deliver to Landlord a written notice of intent to assign
or sublet this Lease, setting forth the terms and the effective date
of the contemplated assignment transaction, the identity of the
proposed assignee and information (including, without limitation,
current financial information regarding net worth, credit and
financial responsibility) with respect to the nature and character
of the proposed assignee’s business, and Landlord shall then have
the right to elect, by notifying Tenant within thirty (30) days of
such delivery, to (x) terminate this Lease, as of such effective
date as if it were the Expiration Date set forth in this Lease or
(y) accept an assignment of this Lease from Tenant, and
Tenant shall then promptly execute and deliver to Landlord, or
Landlord’s designee if so elected by Landlord, in form reasonably
satisfactory to Landlord’s counsel, an assignment which shall be
effective as of such effective date.

 

12

 

(B) In the event that this Lease shall be assigned to Landlord
or Landlord’s designee or if the demised premises shall be sublet to
Landlord or Landlord’s designee pursuant to this subparagraph (v),
the provisions of any such sublease or assignment and the
obligations of Landlord and the rights of Tenant with respect
thereto shall not be binding upon or otherwise affect the rights of
any holder of a superior mortgage or of a lessor under a superior
lease unless such holder or lessor shall elect by written notice to
Tenant to succeed to the position of Landlord or its designee, as
the case may be, thereunder.

(C) Should Tenant determine subject to the provisions of this
Lease, to sublet the demised premises or any portion thereof, other
than by a sublease contemplated by subparagraph (ii) hereof, Tenant
shall, not less than forty-five (45) days prior to the effective
date of the contemplated sublease, deliver to Landlord a written
notice of intent to assign or sublet this Lease, setting forth the
terms of the contemplated sublease transaction, the effective date
therefor, the identity of the proposed subtenant, and information
with respect to the nature and character of the proposed subtenant’s
business, and Landlord shall then have the right to elect, by
notifying Tenant within thirty (30) days of such delivery, to (x)
terminate this Lease as to the portion of the demised premises
affected by such subletting or as to the entire demised premises, in
the case of a subletting thereof, as of such effective date, (y) in
the case of a proposed subletting of the entire demised premises,
accept an assignment of this Lease to Landlord from Tenant, and
Tenant shall then promptly execute and deliver to Landlord, or
Landlord’s designee if so elected by Landlord, in form reasonably
satisfactory to Landlord’s and Tenant’s counsel, an assignment which
shall be effective as of such effective date, (z) accept a sublease
from Tenant of the portion of the demised premises affected by such
proposed subletting or the entire demised premises in the case of a
proposed subletting thereof and Tenant shall then promptly execute
and deliver a sublease to Landlord, or Landlord’s designee if so
elected by Landlord, for the term provided in the aforementioned
written notice of intent to assign or sublet the Lease, commencing
with such effective date, at fair market rental rates.

 

13

 

(D) If Landlord should elect to have Tenant execute and deliver
a sublease to Landlord or its designee pursuant to any of the
provisions of subparagraph (v)(C)(z) above, said sublease shall be
in a form reasonably satisfactory to Landlord’s counsel and on all
the terms contained in this Lease, except that:

(1) Except as provided in subparagraph (v)(C)(z), the terms of
the sublease shall be on the same terms set forth in the term sheet
delivered to Landlord (as described in subparagraph (v)(C) hereof),

(2) The subtenant thereunder shall have the right to underlet
the subleased premises, in whole or in part, without Tenant’s
consent,

(3) The subtenant thereunder shall have the right to make, or
cause to be made, any changes, alterations, decorations, additions
and improvements that such subtenant may desire or authorize,

(4) Such sublease shall expressly negate any intention that any
estate created by or under such sublease be merged with any other
estate held by either of the, parties thereto,

(5) Any consent required of Tenant, as lessor under that
sublease, shall be deemed granted if consent with respect thereto is
granted by Landlord,

(6) There shall be no limitation as to the use of the sublet
premises by the subtenant thereunder,

(7) Any failure of the subtenant thereunder to comply with the
provisions of said sublease, other than with respect to the payment
of rent to Tenant, shall not constitute a default thereunder or
hereunder if Landlord has consented to such non-compliance,

(8) Such sublease shall provide that Tenant’s obligations with
respect to vacating the demised premises and removing any changes,
alterations, decorations, additions or improvements made in the
subleased premises shall be limited to those which accrued and
related to such as were made prior to the effective date of the
sublease, and

(9) If subtenant shall fail to pay the rent under the sublease
to Tenant within ten (10) days after such installment of rent shall
have become due, then Tenant may give subtenant notice
thereof and if subtenant shall continue to fail to make any
such payment within thirty (30) days after the giving of such
notice, then Tenant shall be entitled to offset the amount not paid
against the next rent coming due under the Lease. Notwithstanding
anything herein to the contrary, such offset right shall not be
binding upon nor inure to any mortgagee or superior lessor.

 

14

 

(E) If pursuant to the exercise of any of Landlord’s options
pursuant to this subparagraph (v) this Lease is terminated as to
only a portion of the demised premises, then the fixed annual rent
payable hereunder and the additional rent payable pursuant to the
terms of this Lease shall be adjusted in proportion to the portion
of the demised premises affected by such termination.

(vi) In the event that Landlord does not exercise any of the options
available to it pursuant to subparagraph (v) hereof, Landlord shall
not unreasonably withhold or delay its consent to an assignment of
this Lease or a subletting of the whole or any part of the demised
premises for substantially the remainder of the term of this Lease,
provided:

(A) Tenant shall furnish Landlord with the name and business
address of the proposed subtenant or assignee and information with
respect to the nature and character of the proposed subtenant’s or
assignee’s business, or activities, such references and current
financial information with respect to net worth, credit and
financial responsibility as are reasonably satisfactory to Landlord,
and an executed counterpart of the sublease or assignment agreement;

(B) The proposed subtenant or assignee is a party whose
financial net worth, credit and financial responsibility is,
considering the responsibilities involved, reasonably satisfactory
to Landlord;

(C) The nature and character of the proposed subtenant or
assignee, its business or activities and intended use of the demised
premises is, in Landlord’s reasonable judgment, in keeping with the
standards of the Building and the floor or floors on which the
demised premises are located;

(D) The proposed subtenant or assignee is not then an occupant
of any part of the Building or a party who dealt with Landlord or
Landlord’s agent (directly or through a broker) with respect to
space in the Building during the six (6) months immediately
preceding Tenant’s request for Landlord’s consent;

 

15

 

(E) All costs incurred with respect to providing reasonably
appropriate means of ingress and egress from the sublet space or to
separate the sublet space from the remainder of the demised premises
shall, subject to the provisions of this Lease with respect to
alterations, installations, additions or improvements, be borne by
Tenant;

(F) Each sublease shall specifically state that (x) it is
subject to all of the applicable terms, covenants, agreements,
provisions, and conditions of this Lease, (y) the subtenant will not
have the right to a further sublease thereunder (except the
subtenant of an entire floor of the demised premises shall have all
the rights to assign and sublease afforded to the named Tenant
herein (i.e., G-III Leather Fashions, Inc.); provided,
notwithstanding the provisions of subparagraph (vii)(B) of this
Article 10, such subtenant shall pay to Landlord any and all rents,
additional charge or other consideration payable under such
sub-sublease or otherwise to subtenant by the sub-subtenant which is
in excess of the fixed annual rent and additional rent accruing
during the term of such sub-sublease in respect of the sub-subleased
space (at the rate per square foot payable by subtenant thereunder)
pursuant to the terms of this Lease (including, but not limited to,
sums paid for the sale or rental of subtenant’s fixtures, leasehold
improvements, equipment, furniture or other personal property, less,
in the case of the sale thereof, the then net unamortized or
undepreciated cost thereof determined on the basis of subtenant’s
federal income tax returns), and less the reasonable costs of
effecting such transaction, including, without limitation, brokerage
commissions, legal fees and build out costs, or to allow the demised
premises to be used by others, without the consent of Landlord in
each instance, and (z) a consent by Landlord thereto shall not be
deemed or construed to modify, amend or affect the terms and
provisions of this Lease, or Tenant’s obligations hereunder, which
shall continue to apply to the premises involved, and the occupants
thereof, as if the sublease had not been made;

(G) Tenant shall, together with requesting Landlord’s consent
hereunder, have paid Landlord any reasonable out-of-pocket costs
incurred by Landlord to review the requested consent including any
attorneys fees incurred by Landlord;

(H) The proposed subtenant or assignee is not (w) a retail
branch of a bank trust company, safe deposit business, savings and
loan association or loan company; (x) an employment or recruitment
agency; (y) a school, college, university or educational
institution, whether or not for profit; (z) a government or any
subdivision or agency thereof;

 

16

 

(I) In the case of a subletting of a portion of the demised
premises, the layout of the portion so sublet shall be commercially
reasonable and suitable for normal renting purposes and such
subletting will not result in more than two (2) occupants (including
Tenant) occupying the demised premises; and

(J) Tenant shall not have advertised or listed with any brokers
the proposed assignment or subletting at a rental rate less than the
rental rates then being charged under leases being entered into by
Landlord for comparable space in the Building.

(vii) If Tenant shall assign this Lease or sublease all or any part
of the demised premises, Tenant shall pay to Landlord, as additional
rent:

(A) in the
case of an assignment, an amount equal to one-quarter (1/4) of all sums and other considerations paid to Tenant by
the assignee for or by reason of such assignment or otherwise
(including, but not limited to, sums paid for the sale of Tenant’s
fixtures, leasehold improvements, equipment, furniture, furnishings
or other personal property, less, in the case of a sale thereof, the
then net unamortized or undepreciated cost thereof determined on the
basis of Tenant’s federal income tax returns); and

(B) in the case of a sublease, one-quarter (1/4) of the amount
equal to any and all rents, additional charge or other consideration
payable under the sublease or otherwise to Tenant by the subtenant
which is in excess of the fixed annual rent and additional rent
accruing during the term of the sublease in respect of the subleased
space (at the rate per square foot payable by Tenant hereunder)
pursuant to the terms hereof (including, but not limited to, sums
paid for the sale or rental of Tenant’s fixtures, leasehold
improvements, equipment, furniture or other personal property, less,
in the case of the sale thereof, the then net unamortized or
undepreciated cost thereof determined on the basis of Tenant’s
federal income tax returns).

The sums payable under this subparagraph (vii) shall be paid to
Landlord as and when paid by the subtenant or assignee, as the case
may be, to Tenant.

 

17

 

(viii) If Tenant defaults in the payment of any rent, Landlord is
authorized to collect any rents due or accruing from any assignee,
subtenant or other occupant of the demised premises and to apply the
net amounts collected to the fixed annual rent and additional
rent reserved herein. The receipt by Landlord of any amounts from an
assignee or subtenant, or other occupant of any part of the demised
premises shall not be deemed or construed as releasing Tenant from
Tenant’s obligations hereunder or the acceptance of that party as a
direct tenant.”

22. Nonstandard Alterations. The Twelfth Article of the Lease is hereby amended by
adding the following Section:

“(c) Notwithstanding anything to the contrary, Landlord shall have
the right and privilege to serve at any time up to six (6) months
prior to the expiration of the term of this Lease, a notice upon
Tenant that any “nonstandard alterations” shall be removed and, in
the event of service of such notice, Tenant will, at Tenant’s cost
and expense, remove the same in accordance with such request and
repair any damage to the demised premises caused by such removal;
provided that Landlord shall have advised Tenant at the time it
consented to any such nonstandard alteration that Landlord may
require its removal at the end of the Lease term, if and to the
extent that Tenant shall have requested in writing such advice from
Landlord when it requested Landlord’s consent to such alteration.
For the purposes of this Article 12, a ‘nonstandard alteration’
shall mean auditoriums or similar type special use areas, vaults,
atriums, kitchen equipment and installations, internal stairways,
slab reinforcements, raised floors or other alterations which impede
the installation of duct work or other normal installations above
the finished ceiling or which are not suitable for normal office
occupancy or which would be unusually difficult or costly to remove
in comparison to usual alterations required for general office
purposes. Notwithstanding the foregoing, it is understood and agreed
by the parties hereto that all improvements and other alterations to
the demised premises made by or on behalf of Tenant prior to the
Effective Date shall be deemed to be standard alterations which
Landlord may not require Tenant to remove.”

23. Electricity. The Sixty-Eighth Article of the Lease is hereby deleted and the
following is substituted therefor:

 

18

 

“(i) Tenant agrees that Landlord shall furnish electricity to Tenant
on a ‘submetering’ basis. Landlord shall install any submeters
reasonably required, in Landlord’s judgment, in the demised premises
for the purposes of this Article, at Tenant’s sole cost and expense.
Electricity and electric service, as used herein, shall mean any
element affecting the generation, transmission, and/or
distribution or redistribution of electricity, including, but not
limited to, services which facilitate the distribution of service.

(ii) Tenant covenants and agrees to purchase electricity from
Landlord or Landlord’s designated agent at charges, terms and rates,
including, without limitation, fuel adjustments and taxes, equal to
those specified in the Con Edison SC#4-I rate schedule effective on
the date Landlord first provides electricity to the demised premises
on a submetering basis (the “effective” date), or any successor rate
schedule or service classification, plus five percent (5%) for
transmission line loss and other redistribution costs. Where more
than one (1) meter measures the service of Tenant in the Building,
then the service registered by each meter shall be aggregated and
billed at the applicable rate as if there were only one (1) sub-
meter measuring Tenant’s aggregate use in the entire demised
premises. Bills therefor shall be rendered at such times as
Landlord may elect and the amount, as computed from a meter, shall
be deemed to be, and be paid as, Additional Charges. If any tax is
imposed by any Federal, State or Municipal authority upon Landlord’s
receipts from the sale or resale of electrical energy to Tenant
hereunder, Tenant covenants and agrees that where permitted by law,
Tenant’s pro-rata share of such taxes shall be included in the
amount of Additional Charges to be paid by Tenant to Landlord
hereunder.

(iii) If all or part of the submetering additional rent payable in
accordance with this Article 22 becomes uncollectible or reduced or
refunded by virtue of any law, order or regulation, the parties
agree that, at Landlord’s option, in lieu of submetering Additional
Charges, and in consideration of Tenant’s use of the Building’s
electrical distribution system and receipt of redistributed
electricity and payment by Landlord of consultant’s fees and other
redistribution costs, the fixed annual rent to be paid under this
Lease shall be increased by an “alternative charge” which shall be
the average per rentable square foot rate payable by Tenant for
electricity during the prior twelve (12) month period pursuant to
this Article.

 

19

 

(iv) Landlord shall not be liable for any loss or damage or expense
which Tenant may sustain or incur if either the quantity or
character of electric service is changed or is no longer available
or suitable for Tenant’s requirements. Tenant covenants and agrees
that at all times its use of electric current shall never exceed the
capacity of existing feeders to the Building or wiring installation.
Any riser or risers to supply Tenant’s electrical requirements, upon
written request of Tenant, will be installed by Landlord, at the
sole cost and expense of Tenant, if, in Landlord’s reasonable
judgment,
the same are reasonably necessary and will not cause permanent
damage or injury to the Building or demised premises or cause or
create a dangerous or hazardous condition or entail excessive or
unreasonable alterations, repairs or expenses or otherwise interfere
with or disturb other tenants or occupants of the Building except to
a de minimis extent. In addition to the installation of such riser
or risers, Landlord will also, at the sole cost and expense of
Tenant, install all other equipment proper and necessary in
connection therewith subject to the aforesaid terms and conditions.
The parties acknowledge that they understand that it is anticipated
that electric rates, charges, etc., may be changed by virtue of
time-of-day rates or other methods of billing, electricity purchases
and the redistribution thereof, and that the references in the
foregoing paragraphs to changes in methods of or rules on billing
are intended to include any such changes. Anything hereinabove to
the contrary notwithstanding, in no event is the submetering,
additional rent or any “alternative charge” to be less than an
amount equal to the total of Landlord’s payment to public utilities
and/or other providers for the electricity consumed by Tenant (and
any taxes thereon or on redistribution of same) plus five percent
(5%) for transmission line loss and other redistribution costs.
Landlord reserves the right to terminate the furnishing of
electricity upon sixty (60) days’ prior written notice to Tenant;
provided Landlord terminates the furnishing of electricity to at
least fifty percent (50%) of the tenants of the Building (not
including those retail tenants on the ground floor of the Building)
to whom Landlord is furnishing electricity on a submetered basis, in
which event the Tenant may make application directly to the public
utility and/or other providers for the Tenant’s entire separate
supply of electric current and Landlord shall permit its wires and
conduits, to the extent available and safely capable, to be used for
such purpose, but only to the extent of Tenant’s then authorized
load. Any meters, risers, or other equipment or connections
reasonably necessary to furnish electricity on a submetering basis
or to enable Tenant to obtain electric current directly from such
utility and/or other providers shall be installed at Tenant’s sole
cost and expense. Only rigid conduit or electrical metal tubing
(EMT) will be allowed. Landlord, upon the expiration of the
aforesaid sixty (60) days’ prior written notice period may
discontinue furnishing the electric current but this Lease shall
otherwise remain in full force and effect.

 

20

 

(v) Tenant’s use of electric energy in the demised premises shall
not at any time exceed the capacity of any of the electrical
conductors and equipment in or otherwise serving the demised
premises. In order to insure that such capacity is not exceeded and
to avert possible adverse effect upon the Building’s distribution of
electricity via the Building’s electric system, Tenant shall not,
without Landlord’s prior consent in each instance (which consent
shall not be unreasonably withheld or delayed), connect any
fixtures, appliances or equipment (other than normal business
machines and personal computers, which do not materially increase
Tenant’s electrical consumption) to the Building’s electric system
or make any alterations or additions to the electric system of the
demised premises existing on the Effective Date. Landlord shall
continue to make electrical energy available to the demised premises
in accordance with current practice.

(vi) (1) Upon Tenant’s request therefor, Landlord shall provide
Tenant with utility invoices and other reasonable documentation
supporting its computation of Additional Charges hereunder.

(2) At Landlord’s option, Tenant shall purchase from Landlord
or Landlord’s agent all lighting tubes, lamps, bulbs and ballasts
used in the demised premises and Tenant shall pay Landlord’s
reasonable charges for providing and installing same, on demand, as
additional rent.

24. Default Notices. The Thirty-Ninth Article of the Lease is hereby amended as
follows:

(i) All references to “five (5) days” in subparagraph (a) thereof are hereby
deleted and “fifteen (15) days” is substituted therefor.

(ii) Subparagraph (b) thereof is hereby amended by deleting proviso (1)
therefrom and substituting the following therefor:

“(1) if Tenant shall make default in the payment of the rent
reserved herein for a period of five (5) days after receipt of
written notice from Landlord that same is past due or default in the
payment of additional rent due herein for a period of fifteen (15)
days after receipt of written notice from Landlord that same is past
due . . .”

 

21

 

25. Default. The Seventy-Fifth Article of the Lease is hereby amended by adding the
following provision:

“SEVENTY-FIFTH: (i) If Tenant shall fail to pay any installment of
fixed annual rent for more than five (5) days after the same becomes
due and payable or any amount of additional rent for more than
fifteen (15) days after the same becomes due and
payable (collectively, the “Default Periods”), Tenant shall pay
Landlord a late charge of four cents ($0.04) for each dollar of such
fixed annual rent or additional rent as shall not have been paid to
Landlord within said respective Default Periods. Such late charge
shall be without prejudice to any of Landlord’s rights and-remedies
hereunder or at law for nonpayment of rent, shall be in addition
thereto and shall be deemed to be additional rent. Notwithstanding
anything to the contrary contained herein, Tenant shall be permitted
to pay an installment of fixed annual rent late once per calendar
year without incurring a late charge, provided such payment is
received no later than the tenth (10th) day of the month in which
such payment is due. Further; notwithstanding anything to the
contrary contained herein, Landlord shall waive the late charge for
one (1) late payment of additional rent by Tenant per calendar year,
provided such payment is received no later than thirty (30) days
after the date such payment was due.

(ii) If in accordance with the Thirty-Ninth Article of the Lease,
Tenant shall be in default in the payment of (A) any installment of
fixed annual rent or any amount of additional rent or (B) any other
sum of money which shall become due and payable by Tenant to
Landlord pursuant to the terms of this Lease or by reason of
Tenant’s occupancy of the demised premises, in addition to (and not
in lieu of) the late charge provided for in subparagraph (i) above,
Tenant shall pay interest thereon at a rate equal to the lesser of
four percent (4%) above the prime rate per annum from time to time
set forth in The Wall Street Journal, calculated on the basis of the
actual days elapsed, based on a 360-day year, or the minimum rate of
interest allowed by applicable law(s), if any, then prevailing, from
the date on which such installment or payment is due to the date of
payment thereof, and such interest shall be deemed to be additional
rent.

(iii) Except as required by statute and under the laws, nothing
contained in Article 39 or in this Article 75 shall be deemed to
require Landlord to give the notices therein or herein (if any)
provided for prior to the commencement of a summary proceeding for
nonpayment of rent or a plenary action for the recovery of rent on
account of any default in the payment of the same, it being intended
that such notices are for the sole purpose of creating a conditional
limitation hereunder pursuant to which this Lease shall terminate
and if Tenant thereafter remains in possession or occupancy, it
shall become a holdover tenant.”

 

22

 

26. Miscellaneous. The following is hereby added as Article Eighty-Fifth of the
Lease:

“EIGHTY-FIFTH: (i) This Lease shall be governed in all respects by
the laws of the State of New York.

(ii) If, in connection with obtaining financing for the Building, a
bank, insurance company or other lending institution shall request
reasonable modifications to this Lease as a condition to such
financing, Tenant will not unreasonably withhold, delay or defer its
consent thereto, provided that such modifications do not increase
the obligations of Tenant hereunder, decrease the obligations of
Landlord hereunder, except to a de minimis extent, or
otherwise materially or adversely affect Tenant’s leasehold interest
hereby created.

(iii) Tenant shall not be entitled to exercise any right of
termination or other option granted to it by this Lease (if any) at
any time when Tenant is in monetary default, after applicable
notice, grace and/or cure periods, in the performance or observance
of any of the covenants, terms, provisions or conditions on its part
to be performed or observed under this Lease.

(iv) Tenant shall not occupy any space in the Building (by
assignment, sublease or otherwise) other than the demised premises
or other premises leased to Tenant directly by Landlord (except if
the named Tenant herein is subsequently purchased by a third party
which leases space. in the Building), except with the prior written
consent of Landlord in each instance.

(v) Tenant acknowledges that it has no rights to any development
rights, “air rights” or comparable rights appurtenant to the land or
building, and consents, without further consideration, to any
utilization of such rights by Landlord and agrees to promptly
execute and deliver any instruments which may be requested by
Landlord, including instruments which may be reasonably requested by
Landlord, including instruments merging zoning lots, evidencing
acknowledgment and consent. The provisions of this paragraph shall
be deemed to be and shall be construed as an express waiver by
Tenant of any interest Tenant may have as a “party in interest” (as
such quoted term is defined in Section 12 Zoning Lot of the
Zoning Resolution of the City of New York) in the building or the
land.

 

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(vi) Any and all payments and charges to be paid by Tenant hereunder
other than the annual rent payable pursuant to this Lease shall be
additional rent hereunder for non-payment of which Landlord shall
have all of the remedies provided herein or at law.

(vii) If this Lease be a renewal of an existing lease between the
parties or their predecessors in interest, then any obligation of
Tenant for the payment of rent or additional rent or the performance
of any obligation under such existing lease which accrues prior to
the expiration thereof shall constitute an obligation under this
Lease, except as modified by the Amendment (as that term is defined
in Article 38 of this Lease), for non-payment or non-performance for
which Landlord shall have all of the remedies provided herein.”

27. Common Areas. The following is hereby added as Article Eighty-Sixth of the Lease:

“EIGHTY-SIXTH: As a material inducement to Landlord for entering
into this Lease, Tenant covenants and agrees that except for the
inside surfaces of all walls, windows and doors bounding the demised
premises, all of the: remainder of the Building is exclusively
reserved to Landlord, subject to Tenant’s right to use the common
areas of the Building in accordance with the applicable provisions
of this Lease (including, without limitation, the lobby, elevators
and core bathrooms, as opposed to private bathrooms, on the tenth
(10th) floor of the Building). Notwithstanding anything
to the contrary contained herein, Tenant shall have the right to use
in accordance with the Lease, the electric and telephone closets and
so-called “slop” sinks on the tenth (10th) floor of the
Building.”

28. Landlord’s Access to the Premises. The second sentence of the Twenty-First
Article of the Lease shall be amended to read as follows:

“Landlord or Landlord’s agents shall have the right to enter the
demised premises at reasonable times after notice (which may be
oral) to Tenant to examine the same . . .”

 

24

 

29. Air Conditioning. The Twenty-Fifth Article of the Lease is hereby amended by: (i)
deleting the 4th sentence; and (ii) deleting the phrase “or Landlord’s removal thereof or
termination of the operation thereof, as provided in this paragraph” in the second to the last
sentence.

30. Article Second. Article Second of the Lease is hereby amended to delete the
following language: “expended by Landlord and/or which” in the second line of subparagraph (a).

31. Rent Control. Article Fifty-Third of the Lease is hereby deleted in its
entirety, and the following language is substituted in its place:

“In the event the Fixed Rental or Additional Rental or any part
thereof provided to be paid by Tenant under the provisions of this
Lease during the demised term shall become uncollectible or shall be
reduced or required to be reduced or refunded by virtue of any
federal, state, county or city law, order or regulation, or by any
direction of a public officer or body pursuant to law, or the
orders, rules, code or regulations of any organization or entity
formed pursuant to law, whether such organization or entity be
public or private, then Landlord, at its option, may at any time
thereafter terminate this Lease by not less than thirty (30) days’
written notice to Tenant, on a date set forth in said notice, in
which event this Lease and the term hereof shall terminate and come
to an end on the date fixed in said notice as if the said date were
the Expiration Date. Landlord shall not have the right to so
terminate this Lease if Tenant, within such period of thirty (30)
days, shall, in writing, agree that the rentals herein reserved are
a reasonable rental and agrees to continue to pay said rentals”.

32. Capital Improvements. Articles Fifth, Twenty-Fourth, and Twenty-Fifth are hereby
amended to provide that notwithstanding anything set forth to the contrary in the Lease, Tenant
shall not be responsible to pay for any capital improvements to the Building, and is not
responsible to pay for any sprinkler installations required by Local Law 26/2004, or any sprinkler
alterations unless required by Tenant’s specific use of or alteration to the Premises.

 

25

 

33. Continued Occupancy. Notwithstanding anything set forth to the contrary in
Article Fifty-Ninth of the Lease, Landlord agrees not to serve Tenant with a notice of default
based upon failure of Tenant’s continued occupancy unless the Premises have been vacant for more
than fourteen (14) months. Tenant acknowledges that the previous sentence is not meant
to limit Landlord’s rights or remedies in the event of any other default by Tenant under this
Lease, or in any way interfere with the rights of Landlord to enforce the provisions of this
Lease.

34. Ratification. This Agreement amends and forms a part of the Lease. Landlord and
Tenant hereby ratify and confirm their obligations under the Lease and represent and warrant to one
another that each has no defenses thereto. Additionally, Landlord and Tenant further confirm and
ratify that, as of the date hereof, (i) the Lease is and remains in good standing and in full force
and effect and time remains of the essence thereof, (ii) each has no claims, counterclaims,
set-offs or defenses against the other arising out of the Lease, and other leases for space
occupied by Tenant in the Building, or in any way relating thereto or arising out of any other
transaction between Landlord and Tenant, and (iii) except as otherwise herein set forth, Tenant is
not entitled to any free rent, rent abatement, Landlord’s work contribution or allowance, or
Landlord’s work. Tenant acknowledges that Landlord has performed all obligations imposed on
Landlord by the Lease, and other leases for space occupied by Tenant in the Building, prior to the
date hereof.

35. Entire Agreement; No Waiver. This Agreement, together with the Lease, constitutes
the entire agreement of the parties hereto with respect to the matters stated herein, and may not
be amended or modified unless such amendment or modification shall be in writing and shall have
been signed by the party against whom enforcement is sought. No waiver by

 

26

 

either party or any
failure or refusal by the other party to comply with its obligations hereunder shall be deemed a
waiver of any other or subsequent failure or refusal to so comply. If any provision of this
Agreement shall be invalid or unenforceable, the remainder of this Agreement or the application of
such provision other than to the extent that it is invalid or unenforceable shall not be affected,
and each provision of this Agreement shall remain in full force and effect notwithstanding the
invalidity or unenforceability of such provision, but only to the extent that application and/or
enforcement, as the case may be, would be equitable and consistent with the intent of the parties
in entering into this Agreement.

36. Submission of Amendment. The submission by Landlord to Tenant of this Agreement
shall have no binding force or effect, shall not constitute an option for the leasing of the
Premises, nor confer any rights or impose any obligations upon either party until the execution
thereof by Landlord and the delivery of an executed original copy thereof to Tenant or its
representative. This Amendment shall not be binding upon either party unless and until it is fully
executed and delivered to both parties.

37. Binding Effect; Governing Law. This Agreement shall be binding upon and inure to
the benefit of Landlord and Tenant and their respective successors and assigns. In the event of
any conflict or inconsistency between the terms of this Agreement and the remaining terms of this
Lease, the terms of this Agreement shall govern and control. This Agreement shall be governed by
the laws of the State of New York.

38. Counterparts. This Agreement may be executed in any number of counterparts, each
of which shall constitute an original, but all of which shall constitute one and the same document.
It is not necessary that all parties sign all or any one of the counterparts, but each party must
sign at least one counterpart for this Amendment to be effective.

39. No Recordation. Landlord and Tenant agree that this Agreement shall not be
recorded.

[The remainder of this page is intentionally blank. Signatures are on the next page.]

 

27

 

IN WITNESS WHEREOF, intending to be legally bound hereby, the parties hereto have duly
executed this Agreement as of the date first written above.

	 	 	 	 	 
	 	LANDLORD:

500-512 SEVENTH AVENUE LIMITED PARTNERSHIP

 	 
	 	By:  	/s/ Joseph Chetrit
 	 
	 	 	Name and Title: 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	TENANT:

G-III LEATHER FASHIONS, INC.

 	 
	 	By:  	/s/ Wayne S. Miller
 	 
	 	 	Name and Title: 	 
	 	 	 	 
	 

 

28

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