AMENDMENT NO. 3 TO
LEASE AND PARTIAL TERMINATION AGREEMENT
This Amendment
No. 3 to Lease and Partial Termination Agreement (this
“Amendment No. 3 to Lease”), dated as of
May 27, 2008, is made between THE CONNELL COMPANY, a New
Jersey corporation (“Landlord”), and GENTA
INCORPORATED, a Delaware corporation
(“Tenant”).
WHEREAS, Landlord
and Tenant entered into the Lease dated as of June 28, 2000,
which was amended by Amendment No. 1 to Lease dated as of
June 19, 2002, Amendment No. 2 to Lease dated as of
February 25, 2003 and the letter agreement dated
April 15, 2008 (as amended, the “Lease”;
capitalized terms used herein and not otherwise defined having the
meaning assigned thereto in the Lease) pursuant to which Tenant is
leasing the Demised Premises in the Building from
Landlord;
WHEREAS, Landlord
and Tenant desire to terminate the lease of a portion of the
Demised Premises (consisting of 69,201 rentable square feet located
on the fifth floor of the Building), prior to its scheduled
expiration date;
WHEREAS, in
connection with the early termination of the lease of such fifth
floor space, Tenant will pay Landlord certain amounts as a
termination fee; and
WHEREAS, Landlord
and Tenant desire to reflect such termination and amend certain
portions of the Lease to, among other things, reflect the
same;
NOW, THEREFORE, in
consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
On May 31,
2008 (the “Fifth Floor Termination Date”) the Lease
shall automatically terminate with respect to the Fifth Floor
Terminated Space (as defined below) only, with such termination
having the same force and effect as if the Fifth Floor Termination
Date were the originally scheduled expiration date of the Lease
with respect to the Fifth Floor Terminated Space; provided, however
it is understood and agreed that the Fifth Floor Terminated Space
shall be deemed surrendered and vacated by Tenant in its
“as-is” condition (but in broom clean condition and
with all furniture and personal property removed; it being agreed
that Tenant shall only be required to remove the furniture from the
Fifth Floor Terminated Space on the earlier of
(i) August 31, 2008 or (ii) fifteen (15) days
following Tenant’s receipt of notice from Landlord to have
the furniture removed) rather than in any other condition required
in the Lease on the expiration or earlier termination thereof. Upon
Tenant’s compliance with the requirement set forth above to
surrender and vacate the Fifth Floor Terminated Space in broom
clean condition and with all furniture and personal property
removed, the parties agree that Tenant’s obligations under
the Lease regarding the surrender of the Fifth Floor Terminated
Space shall be deemed satisfied; it being understood that the
foregoing shall not in any way affect any of Tenant’s
indemnification obligations under the Lease. For purposes of
clarification, it is understood and agreed that the termination
described herein on the Fifth Floor Termination Date shall not in
any way apply to or affect any portion of the Demised Premises
other than the Fifth Floor Terminated Space, and the Lease shall
continue on and after the Fifth Floor Termination Date in full
force and effect with respect to all portions of the Demised
Premises other than the Fifth Floor Terminated Space. For purposes
of this Amendment No. 3 to Lease, the “Fifth Floor
Terminated
Space”
shall mean the 69,201 rentable square feet of floor area located on
the fifth floor of the Building which is designated as the
“Fifth Floor Terminated Space” on Schedule I
attached hereto.
SECTION 2.
Amendments to Lease .
2.1. On the Fifth
Floor Termination Date the Lease shall automatically be amended as
set forth in the remaining portions of Section 2
hereof.
2.2.
Section 1.02 of the Lease is amended by inserting the
following immediately prior to the second to last sentence of such
Section 1.02 (such second to last sentence begins with the
words “The Demised Premises includes any
alterations”):
Notwithstanding
any of the foregoing provisions of this Section 1.02,
effective as of the Fifth Floor Termination Date and for all
periods of the Term thereafter, the Demised Premises shall mean
(x) the Initial Demised Premises plus (y) the
Additional Expanets Demised Premises (the total rentable square
footage of the Demised Premises being equal to 24,464 rentable
square feet). For purposes of clarification, effective as of the
Fifth Floor Termination Date, the Demised Premises shall not
include the Fifth Floor Terminated Space.
2.3.
Section 1,03 of the Lease is amended by inserting the
following at the end of such Section 1.03:
Notwithstanding
any of the foregoing provisions of this Section 1.03, for the
period from (and including) June 1, 2008 up to (and including)
February 28, 2010, “Base Rent” shall equal
$56,063.33 per month, which equals the sum of the following
amounts:
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(a)
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Initial Demised Premises
: $27.50 per rentable
square foot of the Initial Demised Premises per annum, or
$352,192.50 in the aggregate per annum (or $29,349.38 per month),
plus
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(b)
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Additional Expanets Demised
Premises: $27.50 per rentable square foot of
the Additional Expanets Demised Premises per annum, or $320,567.50
in the aggregate per annum (or $26,713.96 per month).
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In all cases
Base Rent during any renewal term shall be governed by
Section 4.01 hereof.
2.4.
Section 1.04 of the Lease is amended by deleting such
Section 1.04 in its entirety, and inserting in its place the
following:
Section 1.04 , Termination Payment for Fifth Floor
Terminated Space . As part of the consideration for
Landlord’s agreement to allow for the termination of the
Fifth Floor Terminated Space on the Fifth Floor Termination Date,
Tenant shall pay Landlord the following amounts:
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(a)
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On
or before May 31, 2008, Tenant shall pay Landlord an amount
equal to $1,351,704.04, as follows:
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(i)
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Tenant shall pay Landlord
$240,131.25 on or before May 31, 2008.
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(ii)
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Landlord and Tenant acknowledge that
as of the date of Amendment No. 3 to Lease, the Security
Deposit being held by Landlord equals $1,111,572.79, and Landlord
shall, on or before May 31, 2008, use
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and
apply the full amount of such Security Deposit to satisfy the
balance of the amount Tenant owes Landlord under this clause
(a).
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(b)
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Tenant shall pay Landlord an amount
equal to $1,978,593.98 upon the earlier to occur of
(x) Tenant’s receipt of at least $5,000,000 from a
business development deal or (y) July 1, 2009. In the
event Tenant achieves the trigger set forth in clause
(x) above, Tenant shall promptly notify Landlord in writing
thereof.
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Ail amounts
referred to above shall be paid to Landlord by wire transfer in
immediately available funds in U.S. Dollars, to the following
account: Wachovia Bank, National Association, 190 River Road,
Summit, NJ 07901, Attn: Ms. Kathy Murphy, Senior Vice
President; ABA: 031201467; S.W.I.F.T.: PNBPUS 33; For Credit to the
A/C of: The Connell Company; Account Number: 2000010817252, or to
such other account as Landlord may specify in writing to
Tenant.
2.5.
Section 1.05 of the Lease is amended by inserting the
following at the end of such Section 1.05:
For purposes of
clarification, it is understood that, with respect to the Fifth
Floor Terminated Space only, the Term of this Lease shall expire on
the Fifth Floor Termination Date.
2.6.
Section 1.06 of the Lease is amended by inserting the
following words immediately prior to the last sentence of such
Section 1.06 {such last sentence begins with
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