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TERM EXTENSION AGREEMENT
DATE: AUGUST, 1997
LANDLORD: CVN ASSOCIATES, INC.
A New Jersey Limited Partnership
000 Xxxxxxx Xxxxxx Xxxxxxx
P. O. Box 7815
Edison, New Jersey 08818-7815
TENANT: ABLE LABORATORIES, INC.
A Delaware Corporation
0 Xxxxxxxxx Xxxxx
Xxxxx Xxxxxxxxxx, Xxx Xxxxxx 00000
PREMISES: Approximately 42,000 square feet of gross space, plus
Approximately 3,840 square feet of gross area of
mezzanine located within Xxx 0X, Xxxxx 000
0 Xxxxxxxxx Xxxxx
Xxxxx Plainfield, New Jersey 07080
TERM EXTENSION PERIOD: Five (5) years
Beginning Date: April 1, 2000
Ending Date: March 31, 2005
BASE NET RENT FOR THE
TERM EXTENSION PERIOD: $21,965.00 per month net, subject to adjustment
beginning April 1, 2000, per Clause 3 of this
Agreement
PERCENTAGE OF
ADDITIONAL RENT FOR THE
TERM EXTENSION PERIOD: 100% of the total additional rent expenses for the
Building which contains the Premises as defined in
the Prior Agreements
PRIOR AGREEMENTS
IN EFFECT: Lease dated November 29, 1984
Space Expansion and Term Extension Agreement dated
April, 1988
Space Expansion Agreement dated June, 1993
Term Extension Agreement dated June, 1993
Term Extension Agreement dated May, 1995
The Landlord and the Tenant hereby agree to the terms of this Agreement.
1. The Tenant is presently occupying the Premises under the terms
of the Lease and the above referenced supplemental Agreements.
2. The Term of the Lease shall be extended for the Term Extension
Period set forth above.
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3. Beginning April 1, 2000, and continuing through March 31,
2005, the Tenant shall pay the Base Net Rent per the terms of this Clause.
Beginning as of April 1, 2003, and thereafter as of the first day of April of
each successive year of the Term Extension Period, the Base Net Rent shall be
adjusted by multiplying $21,965.00 by a factor, the denominator of which shall
be the "Consumers Price Index FOR All Urban Consumers" (1982-1984 = 100),
specifically for "All Items", relating to the United States published by the
Bureau of Labor Statistics for April, 2000, and the numerator of which shall be
the CPI for the month of the Term Extension Period in which the adjustments as
are required hereunder occur. In the event the compilation or publication, or
both, of the CPI is revised, discontinued, or transferred to any other
governmental department, bureau or agency, the Landlord may select a comparable,
alternative index for the purposes of the above adjustment.
4. Beginning April 1, 2000, and continuing through the end of the
Term Extension Period on March 21, 2005, the Tenant shall pay the Additional
Rent as set forth above for the Term Extension Period.
5. The Landlord grants the Tenant an option to extend the Term of
the Lease for the Premises for an additional five (5) year extension period. To
exercise this option, the Tenant must strictly comply with the following
conditions: (a) be in strict compliance with all of its obligations under the
terms of the Prior Agreements on the date of exercising this option and on the
date of the beginning of the extension period, and (b) give written notice to
the Landlord no later than twelve (12) months in advance of the beginning of the
extension period, indicating the Tenant's unequivocal and unconditional
intention to exercise this option. If the Tenant does not strictly comply with
the aforesaid conditions, then the Tenant shall not have exercised this option.
If either party rightfully terminates the Lease, or if the notice deadline
passes before the Tenant exercises this option, then this option shall
automatically and immediately be void and shall have no further effect.
If the Tenant exercises this option to extend the Term, then the extension
period shall begin on April 1, 2005, and shall end on March 31, 2010. The
monthly base rent for the extension period shall be determined per the terms of
this Clause.
Beginning as of April 1, 2005, and thereafter as of the first day of April of
each successive year of the Term Extension Period, the Base Net Rent shall be
adjusted by multiplying $21,965.00 by a factor, the denominator of which shall
be the "Consumers Price Index for All Urban Consumers" (1982-1984 = 100),
specifically for "All Items", relating to the United States published by the
Bureau of Labor Statistics for April, 2000, and the numerator of which shall be
the CPI for the month of the Term Extension Period in which the adjustments as
are required hereunder occur. In the event the compilation or publications, or
both, of the CPI is revised, discontinued, or transferred to any other
governmental department, bureau agency, the Landlord may select a comparable,
alternative index for the purposes of the above adjustment.
During the extension period, the Landlord and the Tenant shall comply with all
of the terms of the Lease and any supplemental agreements, in effect, except
that the terms related to base net rent and the Term of the Lease shall be
deemed to be amended to be consistent with the exercise of this option.
6. Landlord shall be responsible for any commission or fee due to
any broker in connection with this Term Extension Agreement.
7. Tenant shall have the exclusive right to use all of the
parking spaces located on Lot 5C. Block 390, having an address of 0 Xxxxxxxxx
Xxxxx, Xxxxx Xxxxxxxxxx, Xxx Xxxxxx.
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8. All of the other terms of the Prior Agreements shall remain in
effect, except as specifically amended herein.
9. This Agreement binds the Landlord and all parties which
rightfully succeed to its rights or take its place. This Agreement binds the
Tenant and all parties which rightfully succeed to its rights or take its place
with the Landlord's consent in accordance with the terms of the Lease.
10. This Agreement contains the entire agreement made by the
Landlord and the Tenant. The terms of this Agreement shall not be changed or
amended, except by the terms of a subsequent written agreement signed by the
Landlord and the Tenant.
WITNESS/ATTEST: LANDLORD/CVN ASSOCIATES, L. P.
By: CVN Associates, Inc.
Corporate General Partner
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By: By: Xxxxxxx X. Xxxxxx, Vice President
WITNESS/ATTEST: TENABLE LABORATORIES, INC.
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By: By: Xxxx X. Xxxx, Ph.D.
President and CEO
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