{"id":41690,"date":"2015-09-17T11:25:58","date_gmt":"2015-09-17T16:25:58","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-legal\/contracts\/uncategorized\/100-alexander-avenue-pompton-plains-nj-west-end-road.html"},"modified":"2015-09-17T11:25:58","modified_gmt":"2015-09-17T16:25:58","slug":"100-alexander-avenue-pompton-plains-nj-west-end-road","status":"publish","type":"corporate_contracts","link":"https:\/\/corporate.findlaw.com\/contracts\/land\/100-alexander-avenue-pompton-plains-nj-west-end-road.html","title":{"rendered":"100 Alexander Avenue (Pompton Plains, NJ) – West End Road Associates and Mohawk Industries Inc."},"content":{"rendered":"\n INTEROFFICE MEMO\n\nTO: THERAL MACKEY \n LINDA BARTENFIELD \n \nFROM: JACK SHARPE \n \nDATE: SEPTEMBER 23, 1996 \n \nSUBJECT: NEW WAREHOUSE - NORTHEAST REGION \n \n--------------------------------------------------------------------------------\n\nDuring the month of December of this year or January, 1997, we will move from\nour current New Jersey warehouse to a larger warehouse.\n\nWe are in the process of signing a new lease as follows:\n\n LOCATION: 100 Alexander Ave., Industrial Park \n Pompton Plains, NJ\n \n EFFECTIVE DATE: January 01, 1997 \n \n TERMS: 7 1\/2 years with right to cancel in 5 years. \n \n OPTIONS: One for 2 1\/2 years, one for 5 years - Total 7 1\/2 years\n \n SIZE: Total 164,437 sq. ft., initially we will only occupy \n 98,137 sq. ft.\n \n LANDLORD: Westend Road Associates \n C\/O The Opper Group \n 1460 Valley Road \n P.O. Box 559 \n Wayne, NJ 07474-0559 \n\n RENT: BASE = $28,623.29 For January, 1997\n DEPOSIT = $28,623.29 \n ---------- \n TOTAL = $57,246.58 Due 09\/23\/96 \n ========== \n ADDITIONAL DEPOSIT = 28,623.29 09\/25\/96\n\n \n LEASE\n\n\n Between\n\n\n WEST END ROAD ASSOCIATES,\n a New Jersey Partnership\n\n Landlord\n\n \n and\n\n\n MOHAWK INDUSTRIES, INC.,\n a Delaware Corporation\n\n Tenant\n\n\n\n Dated: September 23, 1996\n\n\n\n SILLS CUMMIS ZUCKERMAN RADIN \n TISCHMAN EPSTEIN & GROSS, P.A.\n The Legal Center\n One Riverfront Plaza\n Newark, New Jersey 07102-5400\n\n \n TABLE OF CONTENTS\n -----------------\n\nSection\n-------\n Premises \n 1 Term \n 2 Rent \n 3 Proportionate Share \n 4 Additional Rent \n 5 Operating Costs \n 6 Landlord's Obligations \n 7 Intentionally Omitted \n 8 Net Lease \n 9 Additional Space \n 10 Purpose \n 11 Default in Payment of Rent - \n Abandonment of Premises - \n Relating \n 12 Subletting and Assignment \n 13 Condition of Premises; Repairs - \n Clean and Sanitary and Repairs \n 14 Utilities, Services, Costs, Expenses, Taxes \n 15 Mechanics' Liens \n 16 Non-Liability of Landlord - Landlord Indemnity \n 17 Liability Insurance \n 18 Tenant's Own Insurance \n 19 Mutual Waiver of Subrogation \n 20 Failure to Obtain Insurance \n 21 Unavailability of Fire Insurance \n 22 Right to Inspect and Exhibit \n 23 Total or Partial Destruction \n 24 Laws and Ordinances \n 25 Signs \n 26 Priority of Fee Mortgages \n 27 Security Deposit - First Month's Rent \n 28 Rules and Regulations \n 29 Tenant's Violation of Terms - Re-entry by \n Landlord \n 30 Notices \n 31 Entire Agreement; No Oral Changes \n 32 Insolvency of Tenant \n 33 Eminent Domain; Condemnation \n 34 Delivery of Lease \n 35 Lease Provisions Not Exclusive \n 36 Heirs, Etc. \n 37 Date of Possession \n 38 Real Estate Taxes \n 39 Tax Appeals by Landlord \n 40 Quiet Enjoyment \n 41 Reservation of Title \n 42 Outside Storage \n 43 Certificate of Occupancy \n 44 Holding Over \n 45 Consents to Defaults \n 46 Payments in Event of Default \n 47 Financial Statements \n 48 Table of Contents and Marginal Notes \n 49 Broker \n 50 Accord and Satisfaction \n 51 Consents \n 52 Hazardous Substances \n 53 Negotiated Agreement \n 54 Processing Charge \n 55 Mortgagee Protection Clause \n 56 Interpretation \n 57 Right of First Refusal \n 58 Modifications Requested by Mortgagee \n 59 Intentionally Omitted \n\n \n 60 Renewal Options \n 61 Cancellation Option \n 62 Parties Duly Authorized \n 63 Septic System \n Signatures \n Schedule \"A\" - Description of Premises \n Schedule \"B\" - Roof Work \n Schedule \"C\" - Landlord Alteration \n Schedule \"D\" - Letter from James C. Anderson \n Associates, Inc. \n Schedule \"E\" - Letter from The Whitman \n Companies, Inc. \n\n \n LEASE\n -----\n\n THIS AGREEMENT, entered into this 23 day of September, 1996, between WEST\nEND ROAD ASSOCIATES, a New Jersey Partnership, having offices c\/o The Opper\nGroup, 1460 Valley Road, P.O. Box 559, Wayne, New Jersey 07474-0559, hereinafter\nreferred to as \"Landlord\", and MOHAWK INDUSTRIES, INC., a corporation of the\nState of Delaware, having offices at 2001 Antioch Road, Dalton, Georgia 30721,\nhereinafter referred to as \"Tenant\".\n\n\n W I T N E S S E T H:\n\n PREMISES: Landlord hereby demises and leases unto Tenant and Tenant hereby\n --------\nhires and takes from Landlord, for the term and upon the rentals, terms and\nconditions hereinafter specified, the premises described on Schedule \"A\" (the\n\"Premises\") consisting of the entire building (the \"Building\") containing\napproximately 164,437 square feet of space and the common areas appurtenant\nthereto located at 100 Alexander Avenue Industrial Park, Pompton Plains, New\nJersey (the \"Park\") ; provided, however, that until the approximately 62,000\nsquare feet of the Park presently occupied by 3B Trucking (the \"3B Space\") and\nthe approximately 4,300 square feet of the Park presently occupied by Peridot\n(the \"Peridot Space\") become part of the Premises pursuant to Section 9 below,\nTenant's rights with respect to the common areas of the Park shall be limited to\na right of access to the Premises and all common areas of the Park, including\nall trailer parking, together with thirty (30) designated parking spaces in the\nfront of the Park. The Premises are to be delivered in the \"AS IS\" condition as\nof the date hereof, subject to normal wear from the date hereof to the date of\ndelivery of the Premises (or respective part thereof), except that (a) Landlord\nshall cause the work set forth on Schedule \"B\" to be undertaken to the roof of\nthe Building, so that the roof is to be delivered free of\n\n -1-\n\n \nleaks and in good repair, (b) all mechanicals (i.e. heating, ventilating, air\nconditioning, electrical and plumbing) are to be in good working order (and the\nheating system is to be in good working order at the beginning of the heating\nseason), (c) the parking area and loading area are to be delivered in good\ncondition, with patching or paving where needed, and with adequate drainage so\nthat there are no large areas of freestanding water, and (d) broken glass is to\nbe replaced, (e) all light fixtures are to be in working order, (f) the exterior\nof the Building is to be painted, (g) the oil water separator is to be pumped,\n(h) Landlord shall complete all of the alterations set forth on Schedule \"C\"\n(the \"Landlord Alteration\") , and (i) Landlord shall spend up to an aggregate of\nTen Thousand ($10,000.00) Dollars as directed by Tenant on account of repairs,\nalterations and\/or renovations to the Premises not delineated in (a) through (h)\nabove.\n\n The Premises, the 3B Space and the Peridot Space may, at Tenant's option to\nbe exercised prior to January 1, 1997, be measured by a licensed engineer or\narchitect reasonably acceptable to Landlord, in which event the Basic Rent (as\ndefined in Section 2 below) and Tenant's Proportionate Share (as defined in\nSection 3 below) shall be adjusted to reflect the square footages as certified\nby such engineer or architect. Tenant shall be responsible for the payment of\nthe fees of the engineer or architect.\n\n SECTION 1: TERM:\n ----------------\n\n The term of this demise shall be seven (7) years and six (6) months\nbeginning on January 1, 1997 and ending at midnight on June 30, 2004 (the\n\"Term\"), subject, however, to the terms contained herein. Notwithstanding the\nforegoing, Tenant may occupy the Premises commencing on November 1, 1996, and in\nconsideration therefore, Tenant shall comply with all of the terms and\nprovisions of the Lease for the period from November 1, 1996 through December\n31, 1996. In no event, however, shall Tenant be obligated to pay Rent (as\ndefined below) with respect to the 3B Space and\/or the Peridot Space for any\nperiod of time\n\n -2-\n\n \nprior to January 1, 1997, regardless of whether Tenant occupies the 3B Space\nand\/or the Peridot Space at any time prior to January 1, 1997.\n\n SECTION 2: RENT:\n ---------------\n\n The basic rent during the Term of this Lease (\"Basic Rent\") shall be Four\nMillion Five Hundred Sixty-three Thousand One Hundred Twenty-six and 75\/100\n($4,563,126.75) Dollars. The Basic Rent from January 1, 1997 through December\n31, 2001 shall accrue at an annual rate of Five Hundred Seventy-five Thousand\nFive Hundred Twenty-nine and 50\/100 ($575,529.50) Dollars and be payable in\nequal monthly installments of Forty-seven Thousand Nine Hundred Sixty and 79\/100\n($47,960.79) Dollars; and the Basic Rent from January 1, 2002 through June 30,\n2004 shall accrue at an annual rate of Six Hundred Seventy-four Thousand One\nHundred Ninety-one and 70\/100 ($674,191.70) Dollars and be payable in equal\nmonthly installments of Fifty-six Thousand One Hundred Eighty-two and 64\/100\n($56,182.64) Dollars. Notwithstanding the foregoing, if any time during the Term\neither the 3B Space and\/or the Peridot Space is, not part of the Premises, then\nfor that period of time, Tenant shall receive a credit against the Basic Rent\nfor the square footage of such space(s) not leased at the rate of $3.50 per\nsquare foot per annum for the first 5 years of the initial Term, $4.10 per\nsquare foot per annum for the last 2 years and 6 months of the initial Term, and\nthe rates set forth in Section 60(c) below for the two renewal terms. Each\nmonthly installment of Basic Rent shall be paid and be payable in equal monthly\ninstallments on or before the first day of each month, in advance, at the office\nof Landlord or at such other place as shall be designated by Landlord, without\nany prior notice or demand therefor and without any deduction, abatement or set-\noff for any reason whatsoever.\n\n The Basic Rent and any additional rent are hereinafter referred to as\n\"Rent\".\n\n -3-\n\n \n SECTION 3: PROPORTIONATE SHARE:\n ------------------------------\n\n For the purposes of this Lease, Landlord and Tenant agree that the Premises\nconstitute 100% of the Park (\"Proportionate Share\") , except as follows:\n\n (a) So long as the Premises excludes both the 3B Space and the Peridot\nSpace, the Proportionate Share shall be 60%;\n\n (b) So long as the Premises excludes the 3B Space but includes the Peridot\nSpace, the Proportionate Share shall be 62.3%; and\n\n (c) So long as the Premises excludes the Peridot Space but includes the 3B\nSpace, the Proportionate Share shall be 97.4%.\n\n SECTION 4: ADDITIONAL RENT:\n --------------------------\n\n Tenant shall pay, as Additional Rent, its Proportionate Share of all of the\nOperating Costs as defined in Section 5 of this Lease. So long as Tenant is\npaying all of the Operating Costs and the Premises exclude the 3B Space and\/or\nthe Peridot Space, Tenant shall receive a credit against the Basic Rent and\/or\nadditional rent such that the net result is that it is only paying its\nProportionate Share of Operating Costs. However, notwithstanding anything to the\ncontrary, Landlord shall continue to pay taxes and charge Tenant for its\nProportionate Share as set forth in Section 5 below.\n\n SECTION 5: OPERATING COST:\n -------------------------\n\n Operating Costs, for the purposes of this Lease, shall mean the aggregate\nof all expenses of operating the common areas of the Park and its appurtenances\nand shall include, but shall not be limited to, the following: all expenses for\nmaintaining, operating and repairing the Park and its appurtenances, including\nthe expenses of normal replacement of worn out equipment, facilities and\ninstallations; the cost of electricity, water, and other utilities; security;\ngardening and other landscaping; snow removal (notwithstanding anything to the\ncontrary, Tenant shall undertake all snow removal in the Park at its sole cost,\nregardless of whether it occupies the entire Park, and if\n\n -4-\n\n \nTenant's Proportionate Share is less than 100% at the time it undertakes any\nsnow removal, Tenant shall receive a credit against the Basic Rent and\/or\nadditional rent which is a percentage of the cost of such snow removal equal to\nthe difference between 100% and Tenant's Proportionate Share; however, such\ncredit shall not duplicate any portion of the credit described in Section 4\nabove allocable to snow removal); maintenance and repair of the parking lot;\nfire insurance, liability insurance and rent insurance (if Tenant defaults under\nany provision of this Lease, or if Landlord's mortgagee so requires, Tenant's\nProportionate Share of such insurance costs shall be payable monthly to Landlord\nin an amount equal to one-twelfth (1\/12th) of the annual insurance costs); taxes\nas defined in Section 38 of this Lease (if Tenant defaults under any provision\nof this Lease, or if Landlord's mortgagee so requires, Tenant's Proportionate\nShare of such taxes shall be payable monthly to Landlord in an amount equal to\none-twelfth (1\/12th) of the annual taxes); painting; supplies; sales or use\ntaxes on supplies or services; the charges of any independent contractor who\nperforms or does any of the work of operating, maintaining, or repairing the\nPark and its appurtenances; and any other expenses or charges of any nature\nwhatsoever, whether or not herein mentioned, which is in accordance with sound\naccounting and management principles generally accepted with respect to the\noperation of a first-class industrial park, would be considered as Operating\nCosts.\n\n Operating Costs shall not include, however, those matters described as\nLandlord's obligations in Section 6 below, executive salaries, leasing\ncommissions, depreciation, interest on and amortization of mortgages, franchise,\nincome and other taxes based upon the income of Landlord, provided the same\nshall not have been levied as a substitute for real property taxes and shall not\ninclude any items otherwise constituting such expense\n\n -5-\n\n \nto the extent payment therefor is received from, or payable by, another tenant\nof the Park.\n\n SECTION 6: LANDLORD'S OBLIGATIONS:\n ---------------------------------\n\n Landlord shall, at its own expense, make all structural repairs, to include\nreplacement and major repairs of structural beams and columns, foundation and\nbuilding slab, and any required replacement, maintenance and repairs to the\nroof, unless such replacement, maintenance and\/or repairs are necessitated by\nnegligence, acts or omissions of Tenant, its servants, agents or employees, in\nwhich event said replacement, maintenance and\/or repairs shall be made by\nLandlord upon reasonable prior notice to Tenant at Tenant's expense.\n\n SECTION 7: INTENTIONALLY OMITTED.\n --------------------------------\n\n SECTION 8: NET LEASE:\n ---------------------\n\n This Lease is a net lease and the Basic Rent shall be absolutely net to\nLandlord so that, except as expressly provided in this Lease, this Lease shall\nyield, net, to Landlord, the Basic Rent during the Term.\n\n SECTION 9: ADDITIONAL SPACE:\n ---------------------------\n\n Once the 3B Space becomes vacant, Landlord shall notify Tenant in writing,\nand the 3B Space shall be deemed part of the Premises upon the first to occur of\n(a) the thirtieth (30th) day following such notice from Landlord to Tenant, but\nin no event earlier than the day after 3B Trucking vacates the 3B Space and same\nis available for occupancy, or (b) Tenant's occupancy of all or part of said\nspace; provided, however, that Tenant shall have the right to require that\nLandlord notify 3B Trucking to vacate said space on 30 days prior written\nnotice, in which event the 3B Space shall be deemed part of the Premises upon 3B\nTrucking surrendering and delivering possession of same to Landlord; provided,\nhowever, that except in the event of a default by 3B Trucking under its lease,\nLandlord may not, without Tenant's consent, notify 3B Trucking to vacate the 3B\nSpace. Once the Peridot Space becomes vacant (Peridot is obligated to vacate\nsaid\n\n -6-\n\n \nspace on or before April 30, 1998), Landlord shall notify Tenant in writing, and\nthe Peridot Space shall be deemed part of the Premises on the first to occur of\n(a) the thirtieth (30th) day following such notice from Landlord to Tenant, but\nin no event earlier than the day after Peridot vacates the Peridot Space and\nsame is available for occupancy, or (b) Tenant's occupancy of all or part of the\nPeridot Space. When both spaces become part of the Premises, the Premises shall\nconsist of the entire Park, and Tenant shall be responsible for, and shall\ndirectly pay for, all of the Operating Costs of the Park, except as set forth in\nthe last sentence of Section 4 above, and except as limited by Section 6 above;\nprovided, however, that Landlord shall have the right to continue to provide, at\nTenant's cost, the insurance coverage constituting a part of Operating Costs,\nunless Tenant is able to provide insurance coverage in amounts no less than that\ncarried by Landlord, insuring against the same liabilities, by a carrier duly\nauthorized in New Jersey and having a Best's (or similar) rating comparable to\nthat of Landlord's carrier, and which policies shall provide Landlord no less\nthan thirty (30) days prior written notice of cancellation, in which event\nTenant may maintain and pay for such insurance coverage as part of Operating\nCosts.\n\n SECTION 10: PURPOSE:\n --------------------\n\n Tenant covenants and agrees to use the Premises for a distribution and\ntrucking facility, which, however, shall not include the use of red-labeled\nmaterial, and further agrees not to use or permit the Premises to be used for\nany other purposes without the prior written consent of Landlord, which consent\nshall not be unreasonably withheld.\n\n SECTION 11: DEFAULT IN PAYMENT OF RENT - ABANDONMENT \n -----------------------------------------------------\n OF PREMISES - RELETTING:\n -----------------------\n\n Tenant shall, without any previous demand therefor, pay to Landlord, or its\nagent, the Rent and at the times and in the manner herein provided. In the event\nof the non-payment of the Rent, or any installment thereof, at the times and in\nthe manner\n\n -7-\n\n \nabove provided, and if the same shall remain in default for five (5) days\nfollowing written notice from Landlord to Tenant of such non-payment, or if\nTenant shall be dispossessed for non-payment of Rent, or if the Premises shall\nbe deserted or vacant, Landlord or its agents shall have the right to and may\nenter the Premises as the agent of Tenant, either by force or otherwise, without\nbeing liable for any prosecution or damages therefor, and may, but shall not be\nunder any obligation to, relet the Premises as the agent of Tenant, and receive\nthe rent therefor, upon such terms as shall be reasonably satisfactory to\nLandlord, and all rights of Tenant to repossess the Premises under this Lease\nshall be forfeited. Such re-entry by Landlord shall not operate to release\nTenant from any Rent to be paid or covenants to be performed hereunder during\nthe full term of this Lease. For the purpose of reletting, Landlord shall be\nauthorized to make such reasonable repairs or alterations in or to the Premises\nas may be reasonably necessary to place the same in the condition they were at\nthe commencement of the term. Tenant shall be liable to Landlord for the\nreasonable cost of such repairs or alterations and all reasonable expenses of\nsuch reletting. If the sum realized or to be realized from the reletting is\ninsufficient to satisfy the Rent provided in this Lease, Landlord, at its\noption, may require Tenant to pay such deficiency month by month, or may hold\nTenant in advance for the entire deficiency to be realized during the term of\nthe reletting. Tenant shall not be entitled to any surplus accruing as a result\nof the reletting. Landlord shall have the right, as agent of Tenant, to take\npossession of any furniture, fixtures or other personal property of Tenant found\nin or about the Premises after Tenant has vacated or abandoned the Premises, and\nsell the same at public or private sale and to apply the proceeds thereof to the\npayment of any monies becoming due under this Lease, Tenant hereby waiving the\nbenefit of all laws exempting property from execution, levy and sale on distress\nor judgment. Tenant agrees to pay, as\n\n -8-\n\n \nadditional rent, all reasonable attorney's fees and other expenses incurred by\nLandlord in enforcing Tenant's obligation to pay Rent or any other default of\nTenant, whether or not a trial ensues.\n\n SECTION 12: SUBLETTING AND ASSIGNMENT:\n -------------------------------------\n\n Tenant shall not, without first obtaining the written consent of Landlord,\nassign, mortgage, pledge or encumber this Lease in whole or in part, or sublease\nthe Premises or any part thereof, which consent shall not be unreasonably\nwithheld. This covenant shall be binding upon the legal representatives of\nTenant and on every person to whom Tenant's interest under this Lease passes by\noperation of law, but shall not apply to an assignment or subletting to the\nparent or another subsidiary of the parent or an affiliated corporation of the\nparent or a corporation under the same control as the parent, or a division of\nthe parent, or the sale of Tenant's business including its equipment, or its\ntransfer of its leasehold interest occasioned by a consolidation or merger\ninvolving Tenant so long as the net worth after such consolidation or merger is\nequal to or greater than the net worth of Tenant prior to such consolidation or\nmerger. At the time Tenant makes a request to Landlord to assign or sublet the\nPremises, Tenant shall disclose all documents relating to the proposed\nassignment or sublease and all documents relating to the sale of Tenant's\nassets, including without limitation the financial statements of the proposed\nassignee or sublessee, the financial statements of Tenant, and the proposed\nsublease or assignment. In the event Landlord shall consent to an assignment or\nsubletting, that fact shall not relieve Tenant from the obligations or\nliabilities of this Lease nor relieve Tenant from obtaining the consent of\nLandlord in the event of a further assignment or subletting.\n\n In the event that Tenant requests such an assignment or subletting except\nto the parent or another subsidiary of the parent or an affiliated corporation\nof the parent or a\n\n -9-\n\n \ncorporation under the same control as the parent or to a division of the parent,\nor the sale of Tenant's business including its equipment, or its transfer of its\nleasehold interest occasioned by a consolidation or merger involving Tenant so\nlong as the net worth after such consolidation or merger is equal to or greater\nthan the net worth of Tenant prior to such consolidation or merger, Landlord\nreserves the right to (a) approve said assignment or subletting without\nreleasing Tenant from any liability pursuant to this Lease, or (b) with respect\nto an assignment or a sublease of at least fifty (50%) percent of the floor\nspace of the Premises, to terminate this Lease, take back the Premises and\nrelease Tenant from the obligation to further perform under the terms and\nconditions of this Lease, or (c) withhold its consent (but not unreasonably) to\nsaid assignment or subletting. Landlord shall have twenty (20) days from receipt\nof request for such assignment or subletting all information required hereunder\nin which to notify Tenant of its decision and shall notify Tenant in writing\nwithin said period of its decision. Landlord may enter into lease negotiations\ndirectly with such proposed subtenant (but only if the proposed sublease is for\nat least fifty (50%) percent of the floor space of the Premises) or such\nproposed assignee. Notwithstanding that Tenant shall remain primarily liable\nunder this Lease, any assignment or sublease consented to by Landlord shall\nprovide that such assignee or sublessee shall assume all of the obligations of\nTenant hereunder. Tenant shall, at its expense, strictly enforce the terms and\nconditions of this Lease against such assignee or sublessee. If Tenant is in a\npayment default under this Lease, then on demand, any assignee or subtenant\nshall make payments directly to Landlord. If Landlord consents to any assignment\nor sublease where its consent is required hereunder, Tenant shall pay to\nLandlord, as Additional Rent, all consideration received by Tenant for any\nassignment, and all profit (determined on a dollar per square foot basis)\nreceived by Tenant on any sublease\n\n -10-\n\n \ntransaction, net of tenant improvements required to be made in connection\ntherewith, broker's fees reasonable legal fees, advertising and any other\nreasonable direct costs relating to the assignment or sublease.\n\n Notwithstanding anything to the contrary, except in the event of an\nassignment or subletting in connection with the sale of Tenant's business to a\nthird party, Landlord shall have the absolute right to disapprove any assignment\nor subletting where the proposed assignee or subtenant has an S.I.C. number\nsubject to the provisions of ISRA (as defined in Section 52 below) or where the\nproposed use would, in Landlord's reasonable judgment, subject the Premises to\nISRA mandated cleanup obligations.\n\n SECTION 13: CONDITION OF PREMISES: REPAIRS-CLEAN AND SANITARY AND REPAIRS:\n --------------------------------------------------------------------------\n\n Tenant shall keep the Premises in good condition, repair and appearance.\nTenant shall quit and surrender the Premises at the end of the Term in good\ncondition, reasonable wear and tear excepted, and shall not make any\nalterations, additions or improvements to the Premises without the prior written\nconsent of Landlord, which consent shall not be unreasonably withheld; provided,\nhowever, in the event Landlord does consent to Tenant's making any alterations,\nadditions or improvements, Landlord reserves the right, thirty (30) days prior\nto the end of the Term, to demand that Tenant remove said alterations or\nimprovements or leave same; provided, further, that Tenant may, without\nLandlord's consent, convert the offices so designated on Schedule \"A\" to\nwarehouse use, without the obligation to restore same to office use at or prior\nto the end of the Term. In the event that Landlord requires the removal of said\nalterations or improvements, then Tenant shall restore the Premises to their\ncondition prior to the installation of said additions or improvements. All\nerections, alterations, additions and improvements, which are permanent in\ncharacter, which may be made upon the Premises either by Landlord or Tenant,\nexcept furniture or movable fixtures, machinery and equipment installed at the\n\n -11-\n\n \nexpense of Tenant, shall be the property of Landlord and shall remain upon and\nbe surrendered with the Premises as a part thereof at the expiration or sooner\ntermination of this Lease, without compensation to Tenant, unless Landlord has\nrequired their removal as aforesaid. Tenant further agrees to keep the Premises\nand all parts thereof, including, but not limited to, the loading docks,\nelectrical wiring, plumbing and heating, ventilating and air conditioning\nequipment, platforms, windows, walkways, exits and entrances to the Premises, in\na clean and sanitary condition and free from trash, snow, ice, inflammable\nmaterials and other objectionable matter.\n\n SECTION 14: UTILITIES, SERVICES, COSTS, EXPENSES, TAXES:\n -------------------------------------------------------\n\n (a) Tenant shall furnish heat and air conditioning at its own cost and\nexpense.\n\n (b) Tenant shall repair all utility, ventilating, heating, air\nconditioning, electrical, gas and other utility lines within the Premises except\nif damage outside of the Premises is caused by the negligence, acts or omissions\nof Tenant, its agents, servants or employees, in which event Tenant shall\nlikewise repair same outside of the Premises. Tenant shall replace, at its own\nexpense, any and all glass which may be broken in and on the Premises.\n\n (c) Tenant shall pay all costs for electricity, water, standby sprinkler\ncharges, repairs to the sprinkler system, gas and other utilities and services\nconsumed by it.\n\n (d) In the event that any utility deposits are necessary, Tenant shall\npay said deposits to the utility company.\n\n SECTION 15: MECHANICS' LIENS:\n ----------------------------\n\n In the event that any mechanic's lien is filed against the Premises as a\nresult of alterations, additions or improvements made by Tenant, Tenant shall,\nwithin ten (10) days after receiving notice from Landlord, remove said lien or\npost any bond which may be required, which bond shall be with adequate surety.\nIn the event that Tenant fails to file a bond as set forth above,\n\n -12-\n\n \nthen Landlord may, at its option, terminate this Lease and may pay said lien,\nwithout inquiring into the validity thereof, and Tenant shall forthwith\nreimburse Landlord the total expense incurred by Landlord in discharging said\nlien, as additional rent.\n\n SECTION 16: NON-LIABILITY OF LANDLORD - LANDLORD INDEMNITY:\n ----------------------------------------------------------\n\n (a) Landlord shall not be liable or responsible for the loss of or damage\nto property, or injury to persons, including Tenant, occurring in or about the\nPremises or the Park by reason of any existing or future condition, defect,\nmatter or thing in the Premises or the Park or for the acts, omissions or\nnegligence of other persons or tenants in and about the Park, or for acts or\nomissions or defects in design or construction caused by the contractor or any\nsubcontractors responsible for the construction of or repairs or alterations to\nthe Park or the Premises. Tenant agrees to indemnify and save Landlord harmless\nfrom all claims and liability for loss of or damage to property, or injuries to\npersons occurring in or about the Premises or the Park due to the negligent acts\nor omissions of Tenant, its servants, agents, employees or invitees. Tenant's\nobligation pursuant to this Section 16 (a) shall be satisfied provided that it\nobtains insurance as set forth in Section 17.\n\n (b) The liability of Landlord shall in any event be limited to its\ninterest in the Park and Tenant agrees that, in the event of any claim or action\nagainst Landlord, Tenant shall not look to any assets of Landlord or any of its\npartners other than the Park.\n\n SECTION 17: LIABILITY INSURANCE:\n -------------------------------\n\n Tenant, at its cost, shall maintain public liability and property damage\ninsurance with liability limits of not less than Five Million ($5,000,000)\nDollars of Combined Single Limit insuring against all liability of Tenant, its\nagents, servants and employees arising out of and in connection with Tenant's\nuse of the Premises and the Park. All of the aforesaid insurance\n\n -13-\n\n \nshall insure both Tenant and Landlord, who shall be named as co-insureds, and\nTenant shall deliver to Landlord, ten (10) days prior to the expiration of said\npolicy, a renewal thereof.\n\n SECTION 18: TENANT'S OWN INSURANCE:\n ----------------------------------\n\n Tenant may effect, for its own account, any insurance not required under\nthe provisions of this Lease, but any insurance effected by Tenant on the\nPremises, whether or not required pursuant to this Lease, shall be for the\nmutual benefit of Landlord and Tenant and shall be subject to all provisions of\nthis Lease.\n\n SECTION 19: MUTUAL WAIVER OF SUBROGATION:\n ----------------------------------------\n\n It is covenanted and agreed by and between the parties hereto that Tenant\nshall relieve Landlord of all liability for loss or damage to Tenant's property,\nwhether real or personal, caused by fire and\/or the perils covered in a standard\nform fire insurance policy with Extended Coverage, due to any acts of commission\nor omission of Landlord; and Landlord shall relieve Tenant of all liability for\nloss or damage to Landlord's property, whether real or personal, caused by fire\nand\/or the perils covered in a standard form fire insurance policy with Extended\nCoverage, due to any acts of commission or omission of Tenant.\n\n SECTION 20: FAILURE TO OBTAIN INSURANCE:\n ---------------------------------------\n\n If any of the policies of insurance as in this Lease provided to be\nobtained and maintained by Tenant or Landlord cannot be obtained and\/or kept in\nforce through Tenant's fault, and Tenant shall fail to commence to cure, remedy\nand correct the condition which makes it impossible to obtain and keep in force\nsaid policies within fifteen (15) days after written notice given by Landlord to\nTenant, and Tenant fails, neglects or refuses to proceed diligently to cure such\ncondition, Landlord may terminate this Lease by giving at least fifteen (15)\ndays' notice of such termination to Tenant, and this Lease shall terminate at\nthe expiration of said fifteen (15) days with the same force and\n\n -14-\n\n \neffect as if that were the original expiration date thereof, and Tenant shall be\nand remain liable to Landlord for all damages and losses suffered by it in the\nsame manner as if this Lease were terminated for any other default of Tenant. In\nlieu of exercising such right of termination, Landlord may, at its option,\nobtain such policies at regular or increased rates and pay the premiums\ntherefor, and Tenant shall reimburse Landlord for the amount of such premium\nupon demand, and, if not paid, the amount thereof, together with interest at two\n(2%) per cent per month, shall be added to the amount of the next month's rent\nas Additional Rent.\n\n SECTION 21: UNAVAILABILITY OF FIRE INSURANCE:\n --------------------------------------------\n\n If, because of Tenant's occupancy, it shall be impossible to obtain fire\ninsurance on the Park in an amount and in the form and in fire insurance\ncompanies licensed in the State of New Jersey, Landlord may, if Landlord so\nelects, at any time thereafter, terminate this Lease and the Term thereof on\ngiving to Tenant thirty (30) days' notice in writing of Landlord's intention so\nto do, and, upon the giving of such notice, this Lease and the Term thereof\nshall terminate and come to an end, and the parties shall have no liability from\none to the other except for accrued obligations with respect to periods of time\nprior to the date of termination.\n\n SECTION 22: RIGHT TO INSPECT AND EXHIBIT:\n ----------------------------------------\n\n Landlord, or its agent, shall have the right to enter the Premises at\nreasonable hours in the day, and at night in the case of emergency, upon\nreasonable prior verbal notice (except in the case of emergency), to examine the\nsame, or to run telephone or other wires, or to make such repairs, additions or\nalterations as it shall deem necessary for the safety, preservation or\nrestoration of the improvements, or for the safety or convenience of the\noccupants or users thereof (there being no obligation, however, unless expressly\nset forth herein, on the part of Landlord to make any such repairs, additions or\nalterations), or\n\n -15-\n\n \nto exhibit the same to prospective purchasers and put upon the Premises a\nsuitable \"To Let\" sign during the six (6) months prior to the expiration of the\nTerm. For twelve (12) months prior to the expiration of the Term, Landlord, or\nits agents, may similarly exhibit the Premises to prospective tenants.\n\n SECTION 23: TOTAL OR PARTIAL DESTRUCTION:\n ----------------------------------------\n\n In the event of:\n\n (a) the total destruction of the Premises or the Park by fire,\nexplosion, the elements or otherwise during the Term or previous thereto, or\n\n (b) such partial destruction thereof as to render the Premises wholly\nuntenantable or unfit for occupancy, and, in the case of (a) or (b), should the\nPremises be so badly damaged that the same cannot be repaired within one hundred\ntwenty (120) days from the happening of such damage, then and in such case the\nTerm shall, at the option of Landlord or Tenant, to be exercised by notice to\nthe other party sent within thirty (30) days from the date of such damage, cease\nand become null and void from the date of such damage or destruction, and Tenant\nshall immediately surrender the Premises and all Tenant's interest therein to\nLandlord, and shall pay Rent only to the time of such damage, in which event\nLandlord may re-enter and repossess the Premises thus discharged from this Lease\nand may remove all parties therefrom. If neither party exercises its option to\ncancel, or should the Premises be rendered untenantable and unfit for occupancy,\nbut yet be repairable within one hundred twenty (120) days from the happening of\nsaid damage, Landlord shall enter and repair or rebuild the Premises as nearly\nas possible to their previous condition with reasonable speed and the Rent, to\nthe extent hereinafter provided, shall continue to be paid while repairs are\nbeing made. The Rent accrued and accruing shall cease and determine if the\nPremises are totally unusable by Tenant, If a portion is usable, the Rent shall\nbe reduced pro rata for the untenantable portion until the repairs are\n\n -16-\n\n \ncompleted. Tenant shall immediately notify Landlord in case of fire or other\ndamage to the Premises.\n\n SECTION 24: LAWS AND ORDINANCES:\n -------------------------------\n\n Tenant agrees to observe and comply with all laws, ordinances, rules and\nregulations of the Federal, state, county and municipal authorities applicable\nto the Premises, including the making of structural and non-structural\nalterations due to Tenant's occupancy. Tenant agrees not to do or permit to be\ndone at any time during the Term anything in the Premises, or keep anything\ntherein, which will increase the rate of fire insurance premiums on the\nimprovements or any part thereof, or on the property kept therein, above the\npresent rate.\n\n SECTION 25: SIGNS:\n -----------------\n\n No sign shall be affixed to or placed upon any exterior part of the\nPremises by Tenant, except in such manner, and of such size, design and color as\nshall be approved in advance by Landlord in writing, which consent shall not be\nunreasonably withheld.\n\n SECTION 26: PRIORITY OF FEE MORTGAGES:\n -------------------------------------\n\n This Lease shall be subject and subordinate to any present or future\nmortgages of the entire fee interest of the Park and any renewals,\nmodifications, replacements or extensions thereof; provided, however, that as a\ncondition to such subordination, Landlord shall obtain a standard form of\nnondisturbance agreement in favor of Tenant from the holders of all such\nmortgages. No further document shall be necessary to effect said subordination.\nTenant shall, however, on demand of Landlord, execute, acknowledge and deliver\nto any mortgagee an agreement to attorn to such mortgagee as landlord if such\nmortgagee becomes landlord hereunder. If the holder of any mortgage of the\nentire fee interest of the land and building of which the Premises are a part\nrequires that this Lease have priority over such mortgage. Tenant shall, upon\nrequest of such holder, execute, acknowledge\n\n -17-\n\n \nand deliver to such holder an agreement acknowledging such priority.\n\n SECTION 27: SECURITY DEPOSIT - FIRST MONTH'S RENT:\n -------------------------------------------------\n\n (a) To secure the covenants and promises of Tenant contained herein,\nTenant shall deposit with Landlord the sum of Fifty-seven Thousand Two Hundred\nForty-six and 58\/100 ($57,246.58) Dollars by check, subject to collection, as a\nsecurity deposit (the \"security deposit\"). At any time that the Basic Rent\nincreases hereunder, Tenant shall deposit with Landlord such additional sum so\nthat the total security deposit shall equal two (2) months' Basic Rent then\npayable hereunder. The total sum shall be returned to Tenant without interest at\nthe expiration of the Term provided Tenant has performed in accordance with the\nterms hereof. If Landlord applies any part of the security deposit to cure any\ndefault of Tenant, Tenant shall, upon demand, deposit with Landlord the amount\nso applied so that Landlord shall have the full security deposit on hand at all\ntimes during the Term of this Lease. If, at the end of the Term, repairs are\nnecessary to correct any condition beyond ordinary wear and tear, then the\nsecurity deposit, or a portion thereof, may be used by Landlord to make such\nrepairs and the balance remaining shall be returned to Tenant. The security\ndeposited under this Lease shall not be mortgaged, assigned or encumbered by\nTenant without the written consent of Landlord. Tenant hereby waives any future\nlaw or laws which may require Landlord to segregate the security deposit or to\npay interest on the security deposit.\n\n (b) Upon the execution hereof, Tenant shall pay to Landlord the first\nmonth's Basic Rent of Twenty-eight Thousand Six Hundred Twenty-three and 29\/100\n($28,623.29) Dollars, which sum assumes that neither the 3B Space nor the\nPeridot Space will be part of the Premises as of January 1, 1997.\n\n (c) In the event that Landlord shall sell the Park, it shall deliver to\nthe Purchaser the balance of the security\n\n -18-\n\n \ndeposit and notify Tenant of the balance delivered to the purchaser of the Park.\nAfter the sale, Tenant shall have no further claim against Landlord for the\nsecurity deposit.\n\n SECTION 28: RULES AND REGULATIONS:\n --------------------------------- \n\n Reasonable rules and regulations regarding the Premises, including the\nwalkways and parking areas, and the use thereof, which may hereafter be\npromulgated by Landlord, shall be observed by Tenant and Tenant's employees,\nagents and business invitees. Landlord reserves the right to rescind any rules\npromulgated hereafter, and to make such other and further rules and regulations\nas in its reasonable judgment may from time to time be desirable for the safety,\ncare and cleanliness of the Premises and for the preservation of good order\ntherein, which rules, when so made and reasonable notice given to Tenant, shall\nhave the same force and effect as if originally made a part of this Lease. Such\nother and further reasonable rules shall not, however, be inconsistent with the\nproper and rightful enjoyment by Tenant of the Premises in the conduct of its\nbusiness.\n\n SECTION 29: TENANT'S VIOLATION OF TERMS - RE-ENTRY BY LANDLORD:\n --------------------------------------------------------------\n\n In case of violation by Tenant of any of the covenants, agreements and\nconditions of this Lease (other than the nonpayment of Rent hereunder), or of\nthe rules and regulations hereafter to be reasonably established by Landlord,\nand upon failure to discontinue such violation within twenty (20) days after\nnotice thereof given to Tenant, unless a greater time is reasonably necessary to\ncure said violation, this Lease shall thenceforth, at the option of Landlord,\nbecome null and void, and Landlord may re-enter without further notice or\ndemand. The Rent for the remainder of the Term in such case shall become due and\nbe paid, and Tenant shall be liable for all loss or damage resulting from such\nviolation as aforesaid. No waiver by Landlord of any violation or breach of\ncondition by Tenant shall constitute or be construed as a waiver of any other\nviolation or breach of condition, nor shall lapse of time after breach of\n\n -19-\n\n \ncondition by Tenant before Landlord shall exercise its option under this Section\noperate to defeat the right of Landlord to declare this Lease null and void and\nto re-enter upon the Premises after the said breach or violation. Landlord shall\nhave the option of correcting said default and charging the cost thereof to\nTenant as additional rent, which shall be due and payable with the next rent\npayment.\n\n SECTION 30: NOTICES:\n -------------------\n\n All notices and demands, legal or otherwise, incidental to this Lease, or\nthe occupancy of the Premises, shall be in writing. If Landlord or its agent\ndesires to give or serve upon Tenant any notice or demand, it shall be\nsufficient to send a copy thereof by certified mail, return receipt requested,\nor by nationally recognized overnight courier, addressed to Tenant at the\nPremises, and copies thereof to Tenant at the address at the beginning of this\nLease, Attention: Jack Sharp, and to Schiffman, Berger, Abraham, Kaufman & Ritter, Attention: Robert L. Ritter, Esq., 25 Main Street, Court Plaza North,\nP.O. Box 568, Hackensack, New Jersey 07602-0568. Notices from Tenant to Landlord\nshall be sent by certified mail, return receipt requested, or by nationally\nrecognized overnight courier, at the address at the beginning of this Lease and\na copy thereof to Sills Cummis Zuckerman Radin Tischman Epstein & Gross, P.A.,\nAttention: Morris Yamner, Esq., One Riverfront Plaza, Newark, New Jersey 07102-\n5400 or to such other party or place as Landlord or Tenant may from time to time\ndesignate in writing. Notice shall be deemed given upon receipt or rejection as\nevidenced by the green certified mail receipt card or the records of the\novernight courier, as the case may be.\n\n SECTION 31: ENTIRE AGREEMENT: NO ORAL CHANGES:\n ---------------------------------------------\n\n (a) There are no oral agreements between Landlord and Tenant and this\nLease supersedes and cancels any and all previous negotiations, arrangements,\nletters of intent, lease proposals, brochures, agreements, representations,\npromises, warranties and\n\n -20-\n\n \nundertakings between Landlord and Tenant with respect to the subject matter\nhereof and none thereof shall be used to interpret or construe this Lease.\n\n (b) This Lease, including the exhibits hereto and any addenda hereto, sets\nforth all of the covenants, promises, agreements, conditions and undertakings\nbetween Landlord and Tenant concerning the Premises and the Park. No alteration,\namendment, change or addition to this Lease shall be binding upon Landlord or\nTenant unless reduced to writing, signed by them and mutually delivered between\nthem.\n\n SECTION 32: INSOLVENCY OF TENANT:\n --------------------------------\n\n It is further agreed that if at any time during the Term of this Lease\nTenant shall make any assignment for the benefit of creditors, or be decreed\ninsolvent or bankrupt according to law, or if a receiver shall be appointed for\nTenant, and the same is not dismissed within thirty (30) days, then Landlord\nmay, at its option, terminate this Lease, exercise of such option to be\nevidenced by notice to that effect served upon the assignee, receiver, trustee\nor other person in charge of the liquidation of the property of Tenant or\nTenant's estate, but such termination shall not release or discharge any payment\nof rent payable hereunder and then accrued, or any liability then accrued by\nreason of any agreement or covenant herein contained on the part of Tenant or\nTenant's legal representatives. Anything in this Section 32 to the contrary\nnotwithstanding, if in any bankruptcy or reorganization proceedings the full\nrental due and payable to Landlord shall be paid and Tenant shall continue to\nobserve all the other terms and conditions of this Lease, Landlord's right to\nterminate shall not be operative.\n\n SECTION 33: EMINENT DOMAIN; CONDEMNATION:\n ----------------------------------------\n\n If the entire Park or any substantial part thereof wherein the Premises are\nlocated, including Tenant's loading area, shall be taken by public or quasi-\npublic authority under any power of eminent domain or condemnation, this Lease\nshall terminate upon\n\n -21-\n\n \nthe taking of actual possession by the condemning authority and Tenant shall\nhave no claim or interest in or to any award or damages for such taking. If\nproceedings for such taking are instituted by such authority, a deed given by\nLandlord in lieu of condemnation shall have the same effect as a taking by\neminent domain or condemnation. Tenant shall have no claim or right to claim or\nbe entitled to any portion of money as a result of such condemnation\nproceedings, and all rights of Tenant thereto, if any, are hereby assigned to\nLandlord; provided, however, that Tenant shall be entitled to receive an award\n -------- -------\nfor any personalty or trade fixtures which are taken and, in addition, Tenant\nshall be entitled to claim its moving expenses and any separate award for loss\nof business; provided, however, that no award to Tenant shall diminish the award\nof Landlord. Tenant hereby irrevocably assigns to Landlord any award which may\nbe made for its unexpired leasehold interest.\n\n SECTION 34: DELIVERY OF LEASE:\n -----------------------------\n\n No rights are to be conferred upon Tenant until this Lease has been signed\nby Landlord and an executed copy of the Lease has been delivered to Tenant.\n\n SECTION 35: LEASE PROVISIONS NOT EXCLUSIVE:\n ------------------------------------------\n\n The rights and remedies of Landlord contained in this Lease are not\nintended to be exclusive but as additional to all other rights and remedies\nLandlord would otherwise have by law.\n\n SECTION 36: HEIRS, ETC.:\n ----------------------\n\n All of the terms, covenants and conditions of this Lease shall inure to the\nbenefit of, and be binding upon, the respective heirs, executors,\nadministrators, successors and assigns of the parties hereto, except as provided\nin Section 12 hereof.\n\n SECTION 37: DATE OF POSSESSION:\n ------------------------------\n\n Landlord shall not be liable for failure to give possession of the Premises\nupon the commencement date by reason of the fact that the Premises are not ready\nfor occupancy, or due to a prior\n\n -22-\n\n \ntenant wrongfully holding over or any other person wrongfully in possession, or\nbecause of Landlord's failure to complete the Landlord Alteration, or for any\nother reason; in such event, the Rent shall not commence until possession is\ngiven or is available. Landlord shall make reasonable efforts to remove all\npersons wrongfully in possession as soon as possible, and shall undertake the\nLandlord Alteration in a workmanlike and diligent manner.\n\n SECTION 38: REAL ESTATE TAXES:\n -----------------------------\n\n The term \"real estate taxes\" shall mean all taxes imposed on the Park,\nspecial assessments, water and sewer charges and other governmental charges not\nlevied against the land and buildings. If the system of taxation shall be\nchanged during the term of this Lease, or any extension thereof, so that in lieu\nof, or in addition to, the regular municipal real estate taxes now assessed or\nlevied against real property, a tax shall be imposed on such rental income or\nrental value, or on some other basis, and Landlord shall be burdened in part or\nin whole with such additional tax or taxes, Tenant shall pay or reimburse\nLandlord its Proportionate Share of the amount of such substitute or additional\ntax or taxes. If Landlord and Tenant cannot agree on such computation, the\nmatter shall be submitted to arbitration in Newark, New Jersey in accordance\nwith the rules of the American Arbitration Association.\n\n SECTION 39: TAX APPEALS BY LANDLORD:\n ----------------------------------- \n\n If Landlord shall institute a tax appeal, and said tax appeal shall result\nin a reduction in taxes, then Tenant shall pay to Landlord its Proportionate\nShare of Landlord's cost of said appeal, but in no event shall that amount\nexceed the reduction in taxes and Tenant shall receive or be credited with its\nProportionate Share of any refund or reduction.\n\n Tenant shall cooperate in any proceedings described herein. The recovery,\nif any, shall be divided proportionately between\n\n -23-\n\n \nLandlord and Tenant after Landlord deducts any and all costs and expenses.\n\n SECTION 4O: QUIET ENJOYMENT:\n ---------------------------\n\n Landlord has the full right and power to execute and perform this Lease\nand to grant the estate demised herein, and Tenant, on payment of the Rent\nherein reserved and performing the covenants and agreements hereof, shall\npeaceably and quietly have, hold and enjoy the Premises and all rights,\neasements, appurtenances and privileges belonging or in anywise appertaining\nthereto during the Term without molestation or hindrance of any person\nwhomsoever.\n\n SECTION 41: RESERVATION OF TITLE:\n --------------------------------\n \n Tenant may not consent to the reservation of any title to property by any\nconditional vendor to any property which may be affixed to the Premises so as to\nbecome a part thereof (excluding trade fixtures and trade machinery and\nequipment used in Tenant's business), wholly or in any portion, without material\ninjury to the Premises. Landlord hereby states that the reservation of any such\ntitle by any conditional vendor or similar party shall be null and void.\n\n SECTION 42: OUTSIDE STORAGE:\n --------------------------- \n\n Tenant shall not store any goods, other than temporarily in connection\nwith the delivery of any item, outside of the Premises any place in the Park;\nprovided, however, that subject to municipal laws, ordinances and requirements,\nTenant may store goods in the outside trailer parking on the Premises.\n\n SECTION 43: CERTIFICATE OF OCCUPANCY:\n ------------------------------------\n\n It is a condition of this Lease that Tenant be able to obtain, prior to\ncommencement of the Term, a Certificate of Occupancy allowing the Premises to be\nused for the purpose described in Section 10 above, 24 hours a day, 7 days a\nweek, failing which this Lease shall be deemed null and void, and Landlord shall\nreturn all monies paid by Tenant upon execution hereof. Landlord will cooperate\nwith Tenant in obtaining said\n\n -24-\n\n \nCertificate of Occupancy, provided such cooperation is at no cost to Landlord;\nprovided, however, that Landlord shall be responsible, at its sole costs, for\ncorrecting any building and\/or fire code violations preventing the issuance of a\nCertificate of Occupancy, but Landlord shall not be responsible for any work\nrequired in order to obtain a Certificate of Occupancy as a result of Tenant's\nproposed use of the Premises.\n\n SECTION 44: HOLDING OVER:\n ------------------------\n\n If Tenant shall hold over, with or without Landlord's consent, after the\nTerm, then such holding over shall be constituted as a tenancy from month to\nmonth, subject to all of the provisions, conditions and obligations of this\nLease, except that the Basic Rent shall be double the Basic Rent for the last\nmonth of the Term.\n\n SECTION 45: CONSENTS TO DEFAULTS:\n --------------------------------\n\n No consent or waiver, express or implied, by Landlord, to or of any\nbreach or default in the performance by Tenant of Tenant's obligations hereunder\nshall be deemed or construed to be a consent or waiver to or of any other breach\nor default in the performance by Tenant of the same or any other obligations of\nTenant hereunder. Failure on the part of Landlord to complain of any act or\nfailure to act of Tenant or to declare Tenant in default, irrespective of how\nlong such act or failure continues, shall not constitute a waiver by Landlord of\nits rights hereunder.\n\n SECTION 46: PAYMENTS IN EVENT OF DEFAULT:\n ---------------------------------------- \n\n (a) In the event that Tenant fail to pay Rent on or before the tenth\n(10th) day of the month, Tenant shall pay to Landlord a late charge equal to two\n(2%) per cent per month of the Rent due, but in no event less than One Hundred\n($100.00) Dollars.\n\n (b) In the event that Tenant fails, after notice, to take any action\nrequired of it under this Lease, which action is taken by Landlord, Tenant shall\npay to Landlord any monies reasonably expended by Landlord to cure any default\nof Tenant together with\n\n -25-\n\n \ninterest at the rate of two (2%) per cent per month until the date of payment.\n\n (c) All payments due pursuant to this Section 46 shall be deemed\nadditional rent. In the event that said payments are not allowable by law, then\nthe sum to be paid by Tenant to Landlord shall be the highest sum allowed by\nlaw.\n\n SECTION 47: FINANCIAL STATEMENTS:\n -------------------------------- \n\n Tenant shall, if required by Landlord's mortgagee or any future\nmortgagee, or prospective mortgagee or prospective purchaser, submit to\nLandlord, any prospective mortgagee or purchaser, without cost to Landlord, a\ncopy of Tenant's financial statement which shall be considered \"confidential\" by\nthe recipient. Tenant shall also, without cost to Landlord, submit to any\nprospective mortgagee or purchaser such prior statements as it may have, as and\nwhen required by Landlord or Landlord's mortgagee or prospective mortgagee or\nprospective purchaser.\n\n SECTION 48: TABLE OF CONTENTS AND CAPTIONS:\n ------------------------------------------\n\n The Table of Contents, captions or notes in the margin of this Lease are\ninserted only as a matter of convenience and in no way to define, limit or\ndescribe the scope or intent of this Lease, or the terms, conditions and\nprovisions hereof, nor as affecting the meaning of the text of any article or\nsection hereof in any way.\n\n SECTION 49: BROKER:\n ------------------\n\n Landlord agrees to pay, pursuant to a separate agreement, all brokerage\ncommissions payable in connection with the negotiations for, and execution of,\nthis Lease. Tenant and Landlord warrant that they have not dealt with any real\nestate brokers except SBWE, Inc., Charles Klatskin & Company, Inc. and Resource\nRealty in connection with this Lease. In the event of any misrepresentation by\neither Landlord or Tenant, each party agrees to hold the other harmless,\nincluding any costs, interest and legal fees.\n\n -26-\n\n \n SECTION 50: ACCORD AND SATISFACTION:\n -----------------------------------\n\n No payment by Tenant or receipt by Landlord of lesser amount than the\nRent stipulated in this Lease shall be deemed to be other than on account of the\nearliest stipulated Rent, nor shall any endorsement or statement on any check or\nany letter accompanying any check or payment as rent be deemed an accord and\nsatisfaction, and Landlord may accept such check or payment without prejudice to\nLandlord's right to recover the balance of such rent or pursue any other remedy\nprovided in this Lease by law.\n\n SECTION 51: CONSENTS:\n --------------------\n\n With respect to any provision of this Lease which requires that Landlord\nshall not unreasonably withhold or unreasonably delay any consent or approval,\nTenant shall not make or assert any claim for, and Tenant hereby waives any\nclaim for money damages. Tenant shall not claim any money damages by way of\nsetoff, counterclaim or defense, based upon any claim or assertion by Tenant\nthat Landlord has unreasonably withheld or unreasonably delayed any consent or\napproval. Tenant's sole and exclusive remedy shall be an action or proceeding\nfor specific performance, injunction or declaratory judgment.\n\n SECTION 52: HAZARDOUS SUBSTANCES:\n --------------------------------\n\n (a) In the event that Tenant causes the Premises to become an \"industrial\nestablishment\" (as such term is defined in the New Jersey Industrial Site\nRecovery Act, N.J.S.A. 13: 1K-6 et seq., and the regulations promulgated\n -- ---\nthereunder (\"ISRA\"), Tenant shall, at Tenant's sole cost and expense, comply\nwith ISRA. Tenant's obligations under this paragraph (a) shall arise if there is\nany contemplated \"closing, terminating or transferring of operations of any\nindustrial establishment,\" or shifting, buying, selling, or transferring of\ncorporate shares (as such term is currently or in the future defined in ISRA) at\nthe Premises. Tenant shall, at Tenant's sole cost and expense, make all\nsubmissions to, provide all information to, and comply with\n\n -27-\n\n \nall requirements of, the New Jersey Department of Environmental Protection, or\nany agency or subdivision thereof or any agency or subdivision responsible for\nenforcing ISRA (collectively, the \"DEP\"). Should the DEP or any other\ngovernmental agency having jurisdiction determine that a cleanup plan be\nprepared and that a cleanup be undertaken because of any spills or discharges of\nhazardous substances or wastes at the Premises which occurred during the term of\nthe Lease as a result of Tenant's use and occupancy of the Premises, then Tenant\nshall, at Tenant's sole cost and expense, prepare and submit the required plans\nand financial assurances, and carry out the approved plans. Tenant shall fully\ncomply with ISRA and the requirements of the DEP prior to the end of the Term of\nthe Lease.\n\n (b) In the event that ISRA compliance becomes necessary at the Premises\nas a result of Tenant's use and occupancy of the Premises, then, at Landlord's\nelection:\n\n (i) Tenant shall comply with the requirements of ISRA inasmuch as\n such compliance relates to the Premises and Tenant shall be responsible\n for paying the costs of such compliance within 30 days after Landlord's\n demand therefor; or\n\n (ii) Tenant shall be responsible for promptly, and within the time\n frame established by Landlord, complying with ISRA inasmuch as such\n compliance relates to the Premises and to pay the costs of such ISRA\n compliance. Tenant shall also promptly, after Landlord's request (but in\n no event later than 30 days after Landlord's request), provide all\n information requested by Landlord, sign any factually accurate affidavits\n prepared by Landlord concerning ISRA and Tenant's use and occupancy of\n the Premises and pay all costs of such ISRA compliance that are\n attributable to Tenant's use and occupancy of the Premises.\n\n (c) Tenant shall indemnify and hold Landlord harmless from and against\nany loss, cost, liability or expense including,\n\n -28-\n\n \nwithout limitation, attorney's fees, resulting from any environmental condition\ncaused or allowed to occur by Tenant, or from Tenant's failure to comply with\nISRA, including, without limitation, any claims made by any succeeding tenant.\nTenant shall vacate the Premises immediately upon fully complying with ISRA and\nthe requirements of the DEP.\n\n (d) Tenant represents, covenants and warrants that Tenant shall not use\nthe Premises to \"discharge\" (as such term is defined in the Spill Compensation\nand Control Acts, N.J.S.A. 58:10-23.11 et seq., (\"Spill Act\")) \"hazardous\n ------- -- ---\nsubstances\" (as such term is defined in the Spill Act). In the event that there\nshould be filed a lien against the Premises pursuant to and in accordance with\nthe Spill Act, arising from the intentional or unintentional action or omission\nof Tenant or Tenant's employees, agents, contractors, licensees, invitees,\nassigns or subtenants, then Tenant shall, within thirty (30) days after the date\nTenant is given notice of the lien or in such shorter a period of time in the\nevent that the State of New Jersey, or any agency or subdivision thereof, has\ncommenced steps to cause the Premises to be sold pursuant to the lien, pay the\nclaim and remove the lien from the Premises. If Tenant fails to do such by the\nsaid period, Landlord shall be entitled to resort to such remedies as are\nprovided in the Lease as in the case of any default of the Lease, in addition to\nsuch as are permitted by law, in equity, or otherwise.\n\n (e) Tenant represents, covenants, and warrants that Tenant shall not use\nthe Premises in such a manner so as to become liable under the Comprehensive\nEnvironmental Response Compensation and Liability Act, 42 U.S.C. 9601, et seq.\n -- ---\n(\"CERCLA\") . In the event that there shall be filed a lien against the Premises\npursuant to and in accordance with CERCLA arising from the intentional or\nunintentional action or omission of Tenant or Tenant's employees, agents,\ncontractors, licensees, invitees, assigns, or sub-tenants, then Tenant shall,\nwithin 30\n\n -29-\n\n \ndays from the date Tenant is given notice of the lien or in such shorter a\nperiod of time in the event that the United States, or any agency or subdivision\nthereof, has commenced steps to cause the Premises to be sold pursuant to the\nlien, pay the claim and remove the lien from the Premises. If Tenant fails to do\nso by said period, Landlord shall be entitled to resort to such remedies as such\nare provided in the Lease as in the case of any default of the Lease, in\naddition to such as are permitted by law, in equity or otherwise.\n\n (f) In amplification of these paragraphs related to environmental\nobligations, and not by way of limitation, Tenant shall indemnify, defend and\nhold harmless Landlord from and against all fines, suits, procedures, claims,\nactions, damages, liabilities, judgments, costs and expenses (including, without\nlimitation, reasonable attorney's fees) of any kind arising out of or in any way\nconnected with Tenant or Tenant's employees, agents, contractors, licensees,\ninvitees, assignees or subtenants whose actions or inactions or failure to\nmaintain the Premises results in any spills or discharges of hazardous\nsubstances, hazardous wastes, or pollutants at the Premises which occurred\nduring the Term of this Lease; and from all fines, suits, procedures, claims,\nactions, damages, liabilities, judgments, costs and expenses (including, without\nlimitation, reasonable attorney's fees) of any kind arising out of Tenant's\nfailure to provide all information, make all submissions and take all actions\nrequired by the DEP in order to comply with ISRA, the Spill Act, CERCLA or any\nother environmental law.\n\n (g) Tenant's obligations and liabilities under this Section 52 shall\ncontinue after expiration of the Term of this Lease for so long as Landlord\nremains responsible for any spills or discharges of hazardous substances or\nhazardous wastes at the Premises which occur during the Term of this Lease.\n\n (h) Landlord and any employee, representative, agent or contractor of\nLandlord, the DEP or any other federal, state, or\n\n -30-\n\n \nlocal governmental body, agency or division having applicable jurisdiction, may\nenter the Premises for the purpose of inspecting same for compliance with any\nenvironmental law, at reasonable hours, upon reasonable prior notice.\n\n (i) Landlord shall indemnify and hold Tenant harmless from and against\nany loss, cost, liability or expense including, without limitation, attorney's\nfees, resulting from any environmental condition at the Premises pre-dating\nTenant's occupancy thereof. Landlord represents that it knows of no such\nenvironmental condition at the Premises other than as disclosed in the letter\nfrom James C. Anderson Associates, Inc. dated May 22, 1995 set forth on Schedule\n\"D\", and the letter from The Whitman Companies, Inc. dated August 23, 1996 set\nforth on Schedule \"E\".\n\n SECTION 53: NEGOTIATED AGREEMENT:\n --------------------------------\n\n This is a negotiated Lease Agreement, and this Lease Agreement shall not\nbe construed against Landlord by reason of this Lease being prepared by Landlord\nand\/or its attorneys.\n\n SECTION 54: PROCESSING CHARGE:\n -----------------------------\n\n Tenant agrees to reimburse Landlord for reasonable attorneys' fees\nincurred by Landlord in connection with the processing and documentation of any\nassignment, subletting, license, concession, creation of a security interest,\ngranting of a collateral assignment, change of ownership or other transfer\nrequired by Tenant for which Landlord's consent is required or sought, it being\nagreed that Tenant's obligation to reimburse Landlord for such reasonable\nattorneys' fees shall be deemed an additional rent obligation hereunder.\n\n SECTION 55: MORTGAGEE PROTECTION CLAUSE: Tenant agrees to give all\n ---------------------------------------\nmortgagees and\/or trust deed holders, by certified mail, a copy of any notice of\ndefault served on Landlord, provided that prior to such notice Tenant has been\nnotified, in writing (by way of notice of assignment of rents and leases or\notherwise), of the name and address of such mortgagees and\/or trust deed\nholders.\n\n -31-\n\n \nThe mortgagees and\/or trust deed holders shall have the same time within which\nto cure such default as is given to Landlord under this Lease.\n\n SECTION 56: INTERPRETATION: The laws of the State of New Jersey shall\n --------------------------\ngovern the validity, performance and enforcement of this Lease. The invalidity\nor unenforceability of any provision hereof shall not affect or impair any other\nprovision.\n\n SECTION 57: RIGHT OF FIRST REFUSAL:\n ----------------------------------\n\n In the event that any or all of Tenant's interest in the Premises and\/or\nthis Lease is transferred by operation of law to any trustee or receiver, or to\nTenant as a debtor in possession, and subsequently any or all of Tenant's\ninterest in the Premises and\/or this Lease is offered or to be offered by Tenant\nor any trustee, receiver, or other representative or agent of Tenant as to its\nestate or property (such person, firm or entity being hereinafter referred to as\nthe \"Grantor\"), for assignment, conveyance, lease, or other disposition to a\nperson, firm or entity other than Landlord (each such transaction being\nhereinafter referred to as a \"Disposition\"), it is agreed that Landlord has and\nshall have a right of first refusal to purchase, take, or otherwise acquire, the\nsame upon the same terms and conditions as the Grantor thereof shall accept upon\nsuch Disposition to such other person, firm, or entity; and as to each such\nDisposition the Grantor shall give written notice to Landlord in reasonable\ndetail of all of the terms and conditions of such Disposition within twenty (20)\ndays next following its determination to accept the same but prior to accepting\nthe same, and Grantor shall not make the Disposition until and unless Landlord\nhas failed or refused to accept such right of first refusal as to the\nDisposition, as set forth herein.\n\n Landlord shall have twenty (20) days next following its receipt of the\nwritten notice as to such Disposition in which to exercise the option to acquire\nTenant's interest by such Disposition, and the exercise of the option by\nLandlord shall be\n\n -32-\n\n \neffected by written notice to that effect sent to the Grantor by certified or\nregistered mail; but nothing herein shall require Landlord to accept a\nparticular Disposition or any Disposition, nor does the rejection of any one\nsuch offer of first refusal constitute a waiver or release of the obligation of\nthe Grantor to submit other offers hereunder to Landlord. In the event Landlord\naccepts such offer of first refusal, the transaction shall be consummated\npursuant to the terms and conditions of the Disposition described in the notice\nto Landlord. In the event Landlord rejects such offer of first refusal, Grantor\nmay consummate the Disposition with such other person, firm, or entity; but any\ndecrease in price of more than two (2%) percent of the price sought from\nLandlord or any change in the terms of payment for such Disposition shall\nconstitute a new transaction requiring a further option of first refusal to be\ngiven to Landlord hereunder.\n\n The provisions of this Section 57 shall not apply to an assignment or\nsublease permitted under the terms and provisions of Section 12 above.\n\n SECTION 58: MODIFICATIONS REQUESTED BY MORTGAGEE: In the event that a\n ------------------------------------------------\nprospective mortgagee of the Park shall request a reasonable change in the\nlanguage of the terms of this Lease, or the execution of any document in\nconnection therewith, Tenant agrees to make such change or execute such document\nprovided the same shall not increase Tenant's obligations or liabilities under\nthis Lease.\n\n SECTION 59: INTENTIONALLY OMITTED.\n ---------------------------------\n\n SECTION 60: RENEWAL OPTIONS: Tenant is hereby granted two (2) options to\n ---------------------------\nrenew this Lease upon the following terms and conditions:\n\n (a) At the time of the exercise of each option to renew and at the time\nof each said renewal, Tenant shall not be in default in accordance with the\nterms and provisions of this Lease, and shall be in possession of the Premises\npursuant to this Lease.\n\n -33-\n\n \n (b) Notice of the exercise of each option shall be sent to Landlord, in\nwriting, at least nine (9) months before the expiration of the Term, as same may\nhave previously been renewed.\n\n (c) The first renewal term shall be for the term of two (2) years and six\n(6) months to commence on July 1, 2004 and end on December 31, 2006; the second\nrenewal term shall be for the term of five (5) years to commence on January 1,\n2007 and end on December 31, 2011; and all of the terms and conditions of this\nLease, other than the Basic Rent, shall apply during the renewal terms.\n\n (d) The annual Basic Rent to be paid during the first renewal term shall\nbe the square footage of the Premises multiplied by Four and 50\/100 ($4.50)\nDollars; and the annual Basic Rent to be paid during the second renewal term\nshall be the square footage of the Premises multiplied by the greater of (i)\nFour and 50\/100 ($4.50) Dollars, or (ii) Three and 50\/100 ($3.50) Dollars,\nincreased by the percentage increase, if any, in the cost of living between\nOctober 1996 and October 2006.\n\n (e) The cost of living referred to in this Section, shall be determined\nfrom the revised Consumer Price Index for Urban Wage Earners and Clerical\nWorkers - New York, N.Y. - Northeastern N.J., as published by the Bureau of\nLabor Statistics of the United States Department of Labor (1982-1984=100) and\nsuch Cost of Living Index shall be final and binding upon both Landlord and\nTenant. If, at the time required for the determination of the annual Basic Rent\nfor the renewal term, the aforesaid Index is no longer published or issued, the\nparties shall use such other index as is then generally recognized and accepted\nfor similar determinations of cost of living increases.\n\n SECTION 61: CANCELLATION OPTION:\n -------------------------------\n\n Tenant shall have the right to cancel this Lease by written notice\nprovided to Landlord no later than June 30, 2001, and which cancellation shall\nonly be effective as of December 31, 2001. In the event Tenant shall so elect to\ncancel this Lease, it shall\n\n -34-\n\n \nvacate and surrender the Premises to Landlord on or before December 31, 2001 as\nif same were the last day of the Term provided for herein, and in such event the\nparties hereto shall have no further obligations from one to the other, except\nfor past due Rent obligations from Tenant to Landlord, past due monetary\nobligations from one party to the other, and any indemnification and\/or hold\nharmless agreements by either party contained in this Lease.\n\n SECTION 62: PARTIES DULY AUTHORIZED:\n -----------------------------------\n\n Landlord and Tenant represent and warrant one to the other that the\nindividual(s) executing this Lease on their respective behalves have been duly\nauthorized to do same by appropriate partnership (for Landlord) and corporate\n(for Tenant) action.\n\n SECTION 63: SEPTIC SYSTEM:\n ------------------------- \n\n Notwithstanding anything to the contrary, the parties acknowledge and\nagree that Tenant shall be responsible at its sole cost and expense for the\npumping, maintenance and repair of the septic system serving the Premises;\nprovided, however, that if the septic system is required to be replaced, Tenant\nshall be responsible for the first Twenty-five Thousand ($25,000.00) Dollars of\nthe cost of replacement, and Landlord shall be responsible for any such cost in\nexcess of Twenty-five Thousand ($25,000.00) Dollars.\n\n IN WITNESS WHEREOF, the parties have executed these presents the day and\nyear first above written.\n\n\nWITNESS: WEST END ROAD ASSOCIATES, Landlord\n\n\n_____________________________ By________________________________\n Melvin Opper, Partner\n \n\nATTEST: MOHAWK INDUSTRIES, INC., Tenant\n \n \n\/s\/ Theral Mackey By \/s\/ Jack Sharpe\n----------------------------- --------------------------------\n Jack Sharpe, Executive Vice\n President\n\n -35-\n\n \n SCHEDULE \"A\"\n ----------- \n\n DESCRIPTION OF PREMISES\n\n \n SCHEDULE \"B\" \n -----------\n\n ROOF WORK\n\n \n MULLEN ENTERPRISES, INC.\n 4 LITTLE FALLS ROAD FAIRFIELD, NJ 07004\n (201) 227-7866 FAX (201) 227-0778\n\n\n August 12, 1996\n\nMr. Mel Opper\nWest End Road Associates\n1460 Valley Road\nP.O. Box 559\nWayne, NJ 07474-0559\n\nRE: 100 Alexander Ave., Pompton Plains, NJ \n\nDear Mel:\n\nAfter making a thorough inspection of the above mentioned roof we found the\nfollowing: the roof membrane is made out of a rubber system. The field of the\nroof itself seems to be in very good condition, although we would recommend the\nfollowing items be performed on this roof:\n\n 1. Re-flash skylights, vents, fans and any other penetrations through\nthe roof.\n\n 2. Re-seal the gutter and all brackets holding the gutter to the roof.\n\n 3. Re-roof approximately 600 square feet of roofing where low spot is\nlocated.\n\n 4. Re-flash parapit walls.\n\n 5. Complete any minor repairs throughout the roof.\n\n 6. Re-do all the seams in the field of the roof with tape.\n\n 7. Roof will be cleaned out of any and all debris, drains and gutters\nwill be functionable.\n\nIf the above mentioned items are completed for a cost of $38,860.00, in our\nprofessional opinion this roof should give you many more years of good service.\nWe will also guarantee this roof for 7 1\/2 years after the completion of the\nrepair work with the following conditions. You will agree to sign up with our\nmaintenance program to inspect this roof twice a year starting in 1997. If you\nhave any questions please call.\n\nSincerely,\n\n\n\/s\/ John R. Mullen\nJohn R. Mullen\n\n \n SCHEDULE \"C\"\n -----------\n\n LANDLORD ALTERATION\n\n \n EXHIBIT C\n\nSEPTEMBER 13, 1996\n\nALADDIN CARPET RENOVATION\n100 ALEXANDER AVE\nPEQUANNOCK TOWNSHIP, NEW JERSEY\n\n\nLandlord to provide 19 new 8' by 10' overhead door openings, 19 new 8' by 10'\noverhead doors, 6 new 9' by 9' overhead doors at existing locations, 20 new dock\nlevelers and 24 new dock seals. A detailed itemization for the cost of such work\nis as follows:\n\n<\/pre>\n
\n\n EA COST
\n — —-
\n
\nMASON LABOR FOR DOOR OPENINGS 18 51,960.00
\n PREPARE 2 NEW DOCKS 2 4,200.00
\n ADD NEW DOOR AND STEPS 1 3,266.40
\n REVISE EXISTING DOOR AND STEPS 1 1,680.00
\n ADD BOLLARDS 4 1,920.00 <\/p>\nNEW STEEL FRAMES 18 17,712.00 <\/p>\n
60,000 LB CAPACITY DOCK LEVELERS 20 93,550.20* <\/p>\n
REPAIR EXISTING DOCK LEVELERS 4 4,512.00 <\/p>\n
OVERHEAD DOORS, STEEL INSULATED 25 27,801.25 <\/p>\n
DOCK SEALS 8X10 INCLUDING LABOR 18 13,251.87 *
\n 9X9 ” ” 6 4,975.35 * <\/p>\n
ELECTRICAL FOR NEW DOCK LEVELERS 20 20,400.00
\nADD 3 NEW 400 WATT MH EXT FIXTURES 3 2,160.00 <\/p>\n
REGRADE DOCK AT WEST END 1 16,502.50
\n8’X15′ PAD 1 828.00 <\/p>\n
DOCK CANOPY 6′ DEEP 440 36,862.10 <\/p>\n
TWO DOCK OFFICES + 4 WINDOWS 6,379.20
\nDUMPSTERS 4 2,160.00 <\/p>\n
RENOVATE UPSTAIRS OFFICE (4,800 SF) 73,108.00 – See page 3 for breakdown<\/p>\n
TOTAL COST 383,228.87
\n<\/c><\/c><\/s><\/caption>\n<\/table>\n
Page 1<\/p>\n
* See per unit cost on page 2 – total line cost on page 1 includes 15% add-on
\n for Landlord’s overhead and profit.<\/p>\n
EXHIBIT C<\/p>\n
SEPTEMBER 13, 1996<\/p>\n
ALADDIN CARPET RENOVATION
\nPEQUANNOCK TOWNSHIP, NEW JERSEY<\/p>\n
PRICES ARE FOR PEQUANNOCK PER NELSON LETTER<\/p>\n
BASIC DOCK LEVELER 3,229.41
\n WEATHER SEAL -NO CHARGE 9-5 LETTER 0.00
\n AUTO RETURN 241.17
\n TELESCOPING FOOT PROTECTION 66.30
\n MODEL H41218 LAM DOCK BUMPERS 35.29
\n FLOOR PANS PER 8-14 QUOTE 265.00
\nTOTALS 3,837.17
\n TAX 230.23
\nTOTAL COST PER DOCK LEVELER 4,067.40<\/p>\n
DOOR SEALS MODEL 200P 8X10 DOOR 364.70
\nLABOR TO INSTALL 181.25
\n WEAR PLEATS 58.00
\nTOTALS 603.95
\n TAX 36.24
\nTOTAL COST PER DOCK SEAL 640.19<\/p>\n
DOOR SEALS MODEL 200P 9X9 DOOR 441.00
\nLABOR TO INSTALL 181.25
\n WEAR PLEATS 58.00
\nTOTALS 680.25
\n TAX 40.82
\nTOTAL COST PER DOCK SEAL 721.07<\/p>\n
Page 2<\/p>\n
EXHIBIT C<\/p>\n
SEPTEMBER 13,1996<\/p>\n
ALADDIN CARPET RENOVATION
\nPEQUANNOCK TOWNSHIP, NEW JERSEY<\/p>\n
TRADE COST
\nPERMITS 960.00
\nSUPERVISION 0.00
\nDEMOLITION INCLUDING 2ND FL CARPET 3,600.00
\nDRYWALL PARTITIONS + WALL INSULATION 13,200.00
\nDOORS AND FRAMES 4,320.00
\n TWO ALU DOORS 3,600.00
\nACC CEILING REPAIR + NEW IN EXEC AREA 4,560.00
\nCARPET & VAT TILE BY ALADDIN 0.00
\nOFF PAINTING BY ALADDIN 0.00
\nACCORDION DOOR BY ALADDIN 0.00
\nSHELVING BY ALADDIN 0.00
\nTOILET PART 3,240.00
\nPLUMBING 18,400.00
\n ADD SHOWER 2,880.00
\nSPRINKLER 2,880.00
\n CONCEALED HEADS IN EXEC AREA 2,760.00
\nH V A C (NEW REGISTERS IN EXEC AREA) 672.00
\nELECTRICAL + NEW LENSES IN EXEC AREA 12,036.00<\/p>\n
TOTAL COST 73,108.00<\/p>\n
Page 3<\/p>\n
SCHEDULE “D”
\n ————<\/p>\n
LETTER FROM JAMES C. ANDERSON
\n ASSOCIATES, INC.<\/p>\n
JAMES C. ANDERSON ASSOCIATES, INC.
\n CONSULTING ENGINEERS, SCIENTISTS, PLANNERS.
\n SURVETORS AND LICENSED DRILLERS<\/p>\n
181 WESTFIELD AVENUE. CLARK NEW JERSEY 07066. (906) 388-2626. FAX 906(388-
\n2115)<\/p>\n
SENT VIA FACSIMILE AND REGULAR MAIL
\n———————————–<\/p>\n
May 22, 1995<\/p>\n
Mr. Kris Bauman
\nDKM Properties Corporation
\nPrinceton Pine Corporate Center
\n1009 Lenox Drive
\nPost Office Box 6540
\nLawrenceville, New Jersey 08648<\/p>\n
Re: 100 Alexander Avenue
\n Pompton Plains, New Jersey
\n JCA Project No.: H95DKMM-319
\n JCA Proposal No.: H958MKT-582.B<\/p>\n
Dear Mr. Bauman:<\/p>\n
As we discussed on the telephone yesterday, James C. Anderson
\nAssociates, Inc. (JCA) has prepared a Scope of Services, Cost Estimate and
\nSchedule for remediate the soils at the above referenced property.<\/p>\n
On December 7,1994, a cleanup, in the form of soil excavation of
\nvisually stained soils, was conducted at the above referenced facility. six
\nsmall areas were remediated. A total of four 55-gallon drums of soil were
\nexcavated. One post-excavation sample was collected from each area and analyzed
\nfor total petroleum hydrocarbons (TPHC). Four of these samples contained over
\n1,000 milligrams per kilogram (mg\/kg) TPHC, and following New Jersey Department
\nof Environmental Protection (NJDEP) guidelines, were analyzed for volatile
\norganic compounds (VOCs); no VOCs were detected. A single sample (B-1) exceeded
\nthe NJDEP Residential Direct Contact Soil Cleanup Criteria of 10,000 mg\/kg total
\norganic compounds. As such, JCA recommended an additional cleanup in this area
\nin our letter to you dated January 19, 1995. The activities associated with this
\ncleanup are described below.<\/p>\n
As noted in our letters of January 13 and 19, 1995, the data described
\nabove suggests that a release of hazardous materials has occurred at this site.
\nSuch a release should be reported to the NJDEP by the owner or his agent under
\nthe Spill Compensation and Control Act (N.J.A.C. 58:10-23.11 et seq.). A
\nreported spill would be assigned a case number and instructions issued to
\nconduct a site investigation\/remedial action following the NJDEP’s Technical
\nRequirements for Site Remediation (N.J.A.C. 7:26E).<\/p>\n
Mr. Kris Bauman May 19 1996
\nRe: 100 Alexander Avenue, Pompton Plains, NJ Page 2 <\/p>\n
If a report has not been made, the remediation may be conducted under
\nthe Voluntary Cleanup Program. Under this program, an application would be filed
\nfor a Memorandum of Agreement (MOA). The remedial action could be conducted
\nconcurrent with the application process. Following the remediation, a Remedial
\nAction Report would be filed with the NJDEP. If this report meets with the
\nNJDEP’s approval, they will issue a letter of No Further Action.<\/p>\n
The remediation itself consists of three steps: 1) obtain and review
\ncontractor bids; 2) supervise the remediation, and collect and analyze past-
\nexcavation soil samples; and, 3) prepare a report for the NJDEP documenting
\nremedial activities.<\/p>\n
The estimated costs associated with these tasks are attached. Please
\nnote that the actual remedial costs will depend on the bids received. For your
\nplanning purposes, we have estimated these costs. Also attached is a schedule to
\ncomplete these tasks. You may indicate your acceptance of this proposal by
\nsigning in the space provided below and returning the original copy of JCA.<\/p>\n
As we discussed, I will return from vacation or Wednesday, May 31, 1995.
\nShould you have any questions or comments regarding this estimate before that
\ntime, you may contact Kristen Main in my absence or I will be happy to answer
\nany of your questions upon my return, James C. Anderson Associates, Inc.
\nappreciates the opportunity to propose our environmental consulting services to
\nyou.<\/p>\n
Sincerely,
\n James C. Anderson Associates, Inc.<\/p>\n
\/s\/ Kathleen M. Murray
\n Kathleen M. Murray
\n Associate<\/p>\n
\/s\/ Douglass G. Hill, P.G.
\n Douglass G. Hill, P.G.
\n Principal<\/p>\n
KMM\/vag
\nAttachment<\/p>\n
Authorized By: _________________________________________________________________
\n Signature<\/p>\n
Name: _________________________________ Date: __________________________________<\/p>\n
COST ESTIMATE
\n Remediation & Post Excavation Sampling
\n 100 Alexander Avenue
\n Pompton Plains, New Jersey
\n——————————————————————————–<\/p>\n
\n
\nTask 1: Coordination with NJDEP & Application for Memorandum of Agreement<\/p>\n Associate: 2 Hours @ $105\/hour $ 210.00
\n Environmental Scientist: 4 Hours @ $45\/hour 180.00
\n ———-<\/p>\n
Task 1 Total: $ 390.00<\/p>\n
Task 2: Obtain and Review Bids from Remediation Contractors<\/p>\n
Associate: 4 Hours @ $105\/hour $ 420.00
\n Engineer: 4 Hours @ $105\/hour 420.00
\n ———-<\/p>\n
Task 2 Total: $ 840.00<\/p>\n
Task 3: Soil Remediation, Oversight and Post-Excavation Sample Collection
\n and Analysis<\/p>\n
. Soil Excavation (separately contracted):<\/p>\n
Labor; 8 Hours @ $35\/hour $ 280.00
\n Truck: 8 Hours @ $30\/hour 240.00
\n Drums: 4 Drums @ $30\/drum 120.00
\n Clean Fill: 4 Drums @ $50\/drum 200.00
\n Compressor: 1 Compressor @ $150\/day 150.00
\n ———-
\n Soil Excavation Total: $ 990.00<\/p>\n
. Transportation & Disposal (separately contracted):<\/p>\n
Disposal of 4 Drums of Nonhazardous Soil @ $140\/drum $ 560.00
\n Transportation\/Approval Lump Sum 650.00
\n ———- <\/p>\n
Transportation & Disposal Total: $ 1,210.00<\/p>\n
. Sample Collection & Oversight:<\/p>\n
Geologist: 10 Hours @ $85\/hour $ 850.00
\n ———- <\/p>\n
Sample Collection & Oversight Total: $ 850.00
\n<\/c><\/c><\/s><\/table>\n
100 Alexander Avenue – JCA Coal Estimate Attachment Page 1<\/p>\n
COST ESTIMATE
\n Remediation & Post Excavation Sampling
\n 100 Alexander Avenue
\n Pompton Plains, New Jersey
\n——————————————————————————–<\/p>\n
\n
\nTask 3: Soil Remediation, Oversight and Post-Excavation Sample Collection and
\n Analysis (cont’d)<\/p>\n . Sample Analysis: <\/p>\n
5 Samples for TPHC at $50\/sample $ 250.00
\n 1 Sample for VOC+10, B\/N+15 and
\n PP Metals @ $705\/sample $ 705.00
\n 1 Field Blank for VO+10 @ $203 203.00
\n ———-
\n Sample Analysis Total: $ 1,158.00<\/p>\n
Task 3 Total: $ 4,209.00<\/p>\n
Task4: Report Preparation:<\/p>\n
Associate: 6 Hours @ $105\/hour $ 630.00
\n Environmental Scientist: 12 Hours @ $45\/hour 540.00
\n ———-<\/p>\n
Task 4 Total: $ 1,170.00
\n GRAND TOTAL: $ 6,608.00
\n ———-
\n<\/c><\/c><\/s><\/table>\n
100 ALEXANDER AVENUE – JCA COST ESTIMATE ATTACHMENT PAGE 11<\/p>\n
PROJECT SCHEDULE
\n 100 Alexander Avenue
\n Soil Remediation & Post Excavation Samples<\/p>\n
[GRAPH APPEARS HERE]<\/p>\n
SCHEDULE “E”
\n ————<\/p>\n
LETTER FROM THE
\n THE WHITMAN COMPANIES, INC.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
August 23, 1996<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\n487 Edward Ross Drive
\nElmwood Park, New Jersey 07407<\/p>\n
RE: Environmental Services
\n 100 Alexander Avenue
\n Pequannock Township, New Jersey
\n Whitman Project No. 96-07-13<\/p>\n
Dear Mr. Schneider:<\/p>\n
The Whitman Companies, Inc. is pleased to present this letter report for
\nenvironmental services performed at 100 Alexander Avenue in Pequannock Township,
\nNew Jersey. The site is identified as Block 309, Lot 1 on Sheet 23 of the
\nOfficial Tax Map for Pequannock Township.<\/p>\n
Several significant areas of environmental concern (AECs) were addressed by
\nArrow Group Industries, the former operator of the site (1969-1991), under the
\nNew Jersey Department of Environmental Protection (NJDEP) Industrial Site
\nRecovery Act (ISRA). A summary of the individual AECs investigated under ISRA is
\nprovided In Section 1.0.<\/p>\n
Additional cleanup work is being conducted at the site, subsequent to the
\nISRA investigation, under the NJDEP’s voluntary cleanup program. A description
\nof these remedial activities is provided in Section 2.0. Based on information
\nobtained by the NJDEP Northern Field Office, there is one (1) AEC at the
\nproperty that may require further investigation and\/or remediation.<\/p>\n
1.0 ISRA (FORMERLY ECRA) FILE REVIEW
\n ——————————–<\/p>\n
Arrow Group Industries, a former industrial establishment located at the
\nproperty, was subject to a previous environmental Investigation (Case #88578)
\nunder the New Jersey Environmental Cleanup Recovery Act (ECRA). A file review
\nwas conducted at NJDEP’s offices in Trenton on August 7. 1996. The file review
\nwas conducted to determine the nature and extent of the prior cleanup actions
\nconducted at the site.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 2<\/p>\n
The property was subject to ECRA for the cessation of Arrow Group
\nIndustries’ operations. The ISRA initial notice forms were submitted to the
\nNJDEP during 1988. A Negative Declaration Approval was issued by NJDEP in
\nDecember 1991.<\/p>\n
Arrow Group Industries (Arrow) operated at the site from when it was
\ndeveloped in 1968 until approximately December 1991. Arrow’s operations at the
\nproperty included corporate offices and warehousing of unassembled storage sheds
\nmanufactured at other Arrow facilities. A small print shop for printing flyers
\nand Instruction sheets was present on the east side of the building. A small
\narea on the west side of the building was used for the repair and maintenance of
\ndelivery trucks and equipment. Waste oil from the repair and maintenance
\noperations was stored in a 275 gallon aboveground storage tank.<\/p>\n
Six (6) areas of environmental concern (AECs) were identified during the
\nECRA site investigation and cleanup. The areas identified included the
\nfollowing:<\/p>\n
1. Transformers<\/p>\n
2. Main Septic System<\/p>\n
3. Side Septic System<\/p>\n
4. Old Septic System Leach Field<\/p>\n
5. 4,000 Gallon Underground Diesel Fuel Tank<\/p>\n
6. Diesel Fuel Spills<\/p>\n
The investigation of the ABCs included soil sampling, soil excavation and
\ndisposal, and ground water sampling. The ECRA activities conducted at each of
\nthe AECs are described below.<\/p>\n
1.1 Transformers<\/p>\n
A letter obtained from JCP&L indicates that absent of testing of the
\ntransformer’s dielectric fluid, the transformers are assumed to be PCB
\ncontaminated. Therefore, soil samples were collected from the perimeter of the
\ntransformer pad for Polychlorinated Biphenyls (PCBs). The samples were collected
\nto verify that the transformers had not<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 3<\/p>\n
leaked. The analytical results indicated no detected levels of PCBs. NJDEP
\napproved no further actions for this AEC.<\/p>\n
1.2 Main Septic System<\/p>\n
The main septic system is one of three (3) septic systems present on the
\nproperty. The main septic system is located in front of the building and is
\nactive. The main septic system is connected to the buildings’ bathrooms and a
\nsink in a former darkroom.<\/p>\n
The main septic system is composed of two (2) settling tanks in series.
\nOverflow from the settling tanks flows to one of four effluent discharge tanks.
\nSamples were collected of the settling tank sludge and aqueous phases, and from
\nsoils adjacent to the settling and effluent discharge tanks. Samples were
\nanalyzed for Petroleum Hydrocarbons (PHC), Volatile Organics + 15 (VO+IS),
\nPriority Pollutant Metals (Metals), and Cyanides.<\/p>\n
The contaminants detected in the soil samples above the NJDEP soil cleanup
\ncriteria in effect in 1988 included Cadmium, Beryllium, Thallium, and Lead.
\nMethylene Chloride, Toluene, and PHCs were detected in the sludge sample above
\nthe NJDEP soil cleanup criteria in effect in 1988.<\/p>\n
The contents of the septic system tanks were removed and disposed off site.
\nThe contaminated soil was left in place pending the results of a ground water
\ninvestigation. Based on the ground water investigation results, NJDEP required
\nno further actions for this AEC.<\/p>\n
Some of the NJDEP soil cleanup criteria have changed since 1988. If the
\nproperty were to become subject to ISRA, current NJDEP procedures would require
\nan order of magnitude analysis to determine if the contaminant levels remaining
\nfrom former sampling\/remedial actions exceed the current NJDEP soil cleanup
\ncriteria for unrestricted property use. If the remaining contaminant levels are
\nmore than ten (10) times the current standard, then either additional soil
\nremediation or a Declaration of Environmental Restrictions (DER) for the
\ncontaminated area would be required. A DER is similar to a deed notice, which
\nrestricts the use of the contaminated area.<\/p>\n
A comparison of the soil sample results to the current NJDEP soil cleanup
\ncriteria indicate the presence of Cadmium, Beryllium. and Thallium above the
\ncurrent NJDEP soil cleanup criteria of 39 ppm, 1 ppm, and 2 ppm, respectively.
\nHowever, these contaminants<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23. 1996
\nPage 4<\/p>\n
do not exceed the current NJDEP soil cleanup criteria for unrestricted use by an
\norder of magnitude. Therefore, additional soil remediation and\/or a DER are not
\nrequired.<\/p>\n
1.3 Side Septic System<\/p>\n
The side septic system was located on the west side of the building. This
\nseptic system received discharges from a sink located in the former repair and
\nmaintenance area. The side septic system was composed of a single settling tank.
\nSamples were collected of the settling tank sludge and aqueous phases, and from
\nsoils adjacent to the settling tank. Samples were analyzed for PHC and
\nBase\/Neutrals + 15 (BN + 15).<\/p>\n
PHCs were detected in the soil and settling tank samples in concentrations
\nabove the NJDEP soil cleanup criteria in effect in 1988. The settling tank and
\nadjacent contaminated soil were excavated on April 28, 1988. Past-excavation
\nsamples collected for PHCS verified remediation to below the NJDEP cleanup
\ncriteria in effect in 1988.<\/p>\n
The soil samples collected from this area did not include analysis for VO+
\n15 or Metals. These contaminants are a potential concern based on the use of a
\nparts washer. Based on the ground water investigation results and an affidavit
\nprovided by Arrow, NJDEP required no further actions for this AEC.<\/p>\n
A comparison of the soil sample results to the current NJDEP soil cleanup
\ncriteria indicated that the remediation meets the current NJDEP soil cleanup
\ncriteria for unrestricted property use.<\/p>\n
1.4 Old Septic System<\/p>\n
The old septic system was located in approximately the same location as the
\nmain septic system. The [each field for the aid system was just west of the main
\nsystem settling tanks. Soil samples were collected from the old septic system
\nleach field for PHC, VO + 15, Metals, and Cyanide analyses.<\/p>\n
The contaminants detected in the soil samples above the NJDEP soil cleanup
\ncriteria in effect in 1988 included Cadmium, Beryllium, and Thallium. The
\ncontaminated soil was left in place pending the results of a ground water
\ninvestigation. Based on the ground water investigation results, NJDEP required
\nno further actions for this AEC.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 5<\/p>\n
A comparison of the soil sample results to the current NJDEP soil cleanup
\ncriteria indicated the presence of Cadmium, Beryllium, and Thallium above the
\ncurrent NJDEP soil cleanup criteria of 39 ppm, 1 ppm, and 2 ppm, respectively.
\nHowever, these contaminants do not exceed the current NJDEP soil cleanup
\ncriteria for unrestricted use by an order of magnitude.<\/p>\n
1.5 4,000 GALLON UNDERGROUND DIESEL FUEL TANK<\/p>\n
A 4,000 gallon underground diesel fuel tank was located on the west side of
\nthe building. The rank was excavated on April 28, 1988. Post-excavation soil
\nsamples were collected from the tank excavation for PHC and Polycyclic Aromatic
\nHydrocarbons (PAHs) analyses. The presence of PHCs or PAHs was not detected.<\/p>\n
NJDEP approved no further actions for this AEC.<\/p>\n
1.6 DIESEL FUEL SPILLS<\/p>\n
Two diesel fuel spills occurred at the northwest corner of the building.
\nThe contaminated soil was excavated on April 28, 1988. Post-excavation soil
\nsamples were collected for PHC and PAR analyses. PHCs were detected above the
\nNJDEP soil cleanup criteria in effect in 1988. Therefore, additional soil was
\nexcavated from this area on July 27, 1988. Additional post-excavation soil
\nsamples were collected for PHC analysis. The presence of PHCs was not detected
\nin the additional post-excavation soil samples.<\/p>\n
NJDEP approved no further actions for this AEC.<\/p>\n
1.7 GROUND WATER INVESTIGATION<\/p>\n
Based on the results of sampling conducted at the main and old septic
\nsystems, a ground water investigation was required by NJDEP.<\/p>\n
On April 13 and 14, 1989, four (4) ground water monitoring wells were
\ninstalled at the property. Three (3) wells were installed near three of the
\nseptic tanks and the fourth was installed upgradient from the septic system.
\nGround water was encountered at a depth of approximately ten (10) feet below
\ngrade. Ground water flow was from southwest to northeast.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 6<\/p>\n
Three (3) rounds of ground water samples were collected during April, June
\nand August 1989. The first two (2) rounds of samples were analyzed for PHC, VO +
\n15, BN + 15, and Metals. The third round was analyzed for BN + 15 and Metals
\nonly.<\/p>\n
The first sampling round indicated the presence of BN + 15 and the metals
\nArsenic, Chromium, and Lead above the NJDEP ground water cleanup criteria in
\neffect in 1989. The highest contaminant levels were detected in the upgradient
\nwell. This indicated the source of ground water contamination was likely from an
\noff-site source.<\/p>\n
No contamination above the NJDEP ground water cleanup criteria in effect in
\n1989 was detected in the second and third round of samples. The second and third
\nround of samples for metals analysis were filtered, which removes sediment from
\nthe sample. This is likely why the level of metals detected was significantly
\nlower than in the first sampling round.<\/p>\n
Based on the results of the second and third sampling rounds and likely
\noff-site source of contamination detected, NJDEP approved no further actions
\nwith respect to ground water. The four (4) monitoring wells were subsequently
\nsealed.<\/p>\n
The NJDEP ground water cleanup criteria have changed since 1989. A
\ncomparison of the PHC, VO + 15, and BN + 15 results to the current NJDEP ground
\nwater cleanup criteria indicated that these contaminants are not a concern. One
\n(1) BN + 15, bis(2-Ethyl-hexyl)phthalate, was detected in the first sampling
\nround above the current cleanup criteria in one well, but was not detected in
\nthe subsequent sampling rounds.<\/p>\n
A comparison of the Metals results to the current NJDEP ground water
\ncleanup criteria indicated the presence of the metals Arsenic, Cadmium,
\nChromium, Lead, and Nickel above their respective current cleanup criteria in
\nthe unfiltered ground water samples. Chromium and Thallium were detected above
\ntheir respective current cleanup criteria in the third round of filtered ground
\nwater samples.<\/p>\n
The NJDEP currently does not accept the results of filtered metals samples.
\nNone of the metals detected in the unfiltered samples exceed the current cleanup
\ncriteria by an order of magnitude. Furthermore, the sample results indicated an
\noff-site source of ground water contamination.<\/p>\n
One (1) copy of the materials reproduced from the NJDEP ISRA file are
\nprovided with this letter report.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 7<\/p>\n
2.0 MOA FILE REVIEW
\n —————<\/p>\n
A copy of a letter report prepared by James C. Anderson Associates, Inc.
\n(JCA), dated May 22, 1995, was obtained by Whitman from Aladdin Mills. The
\nreport indicates that soil excavation of visually stained soils was conducted at
\nsix (6) small areas on the property on December 7, 1994. Four (4) 55 gallon
\ndrums of soil were excavated from these areas and remain on site in the rear
\nparking lot area. The specific locations where soil was removed was not
\nidentified in the letter report. A copy of the letter is provided as Attachment
\n1.<\/p>\n
One (1) post-excavation soil sample was collected from each area and
\nanalyzed for total petroleum hydrocarbons (TPH). Four (4) of these samples
\ncontained TPH concentrations above 1,000 parts per million (ppm). Following
\nNJDEP guidelines, each of these samples was analyzed for Volatile Organic
\nCompounds (VOCs). No VOCs were detected. One (1) of the samples (B-1), however,
\nexhibited a TPH concentration above the applicable Soil Cleanup Criteria of
\n10,000 ppm.<\/p>\n
3B Warehouse and Distribution, Inc., the current tenant at the property,
\nentered into a Memorandum of Agreement (MOA) with the NJDEP in April 1996 (Case
\n#96-4-9-1613-06) for remedial action of the area in the vicinity where sample
\nB-1 was collected. The MOA is a process whereby the applicant proposes to
\nperform a voluntary cleanup in response to a reported discharge. The case has
\nbeen assigned to the NJDEP Northern Field Office. Tom McClachrie, the NJDEP Case
\nManager, was contacted by telephone for information on the current status of the
\nremedial activity.<\/p>\n
According to Mr. McClachrie, JCA submitted a letter report to NJDEP on June
\n13, 1996 with the results of additional sampling conducted in the vicinity where
\nsample B-1 was originally collected. The report indicated the following items:<\/p>\n
. A volume of approximately 10 cubic yards of soil was to be remediated to
\n an approximate depth of 18 to 24 inches, above the abandoned railroad
\n siding.<\/p>\n
. The contaminated soil would be disposed off site.<\/p>\n
. Five (5) post-excavation samples would be collected.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 8<\/p>\n
As of August 22, 1996, the NJDEP Northern Field Office has not received the
\npost-excavation soil sample results. A small soil pile, estimated at two (2)
\ncubic yards, remains stockpiled on site in the rear parking lot area, in
\naddition to the four (4) drums of contaminated soil generated in December 1994.<\/p>\n
According to Mr. McClachrie, prior sampling activity conducted along the
\nrailroad siding may not have been representative of worst case conditions since
\nthe samples were collected from loose soil material located within the gravel
\npack. He indicated that the Department may require the collection of soil
\nsamples from material beneath the gravel railroad bed to establish actual site
\nconditions.<\/p>\n
The MOA case remains open at this time, pending NJDEP receipt and review of
\nthe most recent sampling data. Department approval of the remedial activity
\nconducted under the MOA program would be strictly limited to the specific area
\ninvestigated and would not make any representation regarding the environmental
\nconditions of any other areas at the property.<\/p>\n
3.0 ENVIRONMENTAL DATABASE SEARCH
\n —————————–<\/p>\n
Whitman conducted a review of Standard Environmental Record Sources
\n(Federal\/State) as determined by ASTM Standard E1527-94. This review was
\nfacilitated by obtaining a radius search report for the required environmental
\ndatabases from EcoSearch Environmental Resources (EER), Indianapolis, Indiana, a
\ncommercial database service. The purpose of obtaining such a report is to
\nidentify any history of hazardous waste activity known to have taken place at
\nthe subject property or at any site within the approximate minimum search
\ndistance specified in the ASTM Standard E1527-94.<\/p>\n
The subject property was listed as a RCRA Generator site in connection with
\nprior disposal of hazardous materials generated by Arrow Group Industries. The
\nproperty was also listed as a UST site in connection with the former underground
\ndiesel tank. The subject property was not listed in any of the other
\nenvironmental databases researched by EER.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 9<\/p>\n
Edwards Engineering Corp. located on the adjoining southern property, is
\nlisted as a RCRA Generator and Toxic Release Inventory (TRI) site. The TRI
\ndatabase contains information from facilities that manufacture, process, or
\nimport any of over 300 listed toxic chemicals which are released directly into
\nthe air, water or land, or are transported off site. The database includes facts
\non amounts of chemica1s stored and emitted from the facility. This database is
\nreleased on an infrequent basis by the USEPA.<\/p>\n
TRI data for Edwards Engineering Corp from 1989 to 1991 indicates that
\nvarious metals compounds and VOCs were released into the air or transferred off
\nsite during this period. There were no reports of a release into water or land
\nat the site.<\/p>\n
The Pequannock Township Department of Public Works facility, located just
\nto the west of the subject property, is listed as a RCRA Generator and a
\nRegistered New Jersey Underground Storage Tank (UST) site. This township site is
\nnot listed in the Leaking Underground Storage Tank (LUST) database.<\/p>\n
The nearest contaminated sites listed in the EER report are identified
\nbelow.<\/p>\n
. Franks Chevron – 0.3 miles west of the subject property.<\/p>\n
. Citgo Service Station – 0.3 miles west-southwest of the subject property<\/p>\n
. Merit Service Station – 0.35 miles east of the subject property<\/p>\n
. Getty Service Station – 0.35 miles northeast of the subject property<\/p>\n
. Rentals Unlimited, Inc. – 0.36 miles east-southeast of the subject
\n property<\/p>\n
No other contaminated sites were identified within a 0.5 mile radius of the
\nsubject property. A copy of the EER report is provided as Attachment 2.<\/p>\n
4.0 SITE INSPECTION
\n —————<\/p>\n
Whitman conducted inspections of the site on July 29, 1996 and August 16,
\n1996. No sampling or testing of air quality, soil, water or other materials
\n(e.g. asbestos) was conducted. The following site conditions were observed:<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 10<\/p>\n
Outside Areas
\n ————-<\/p>\n
. A transformer is located outside the southwest corner of the building.
\n No evidence of staining or spillage was found at the base of the
\n transformer. A blue sticker “no PCBs” was affixed to the transformer
\n indicating that its contents do not contain PCBs.<\/p>\n
. A propane storage shed is located outside the northwest corner of the
\n building.<\/p>\n
. The area being investigated under the MOA program is located above a
\n railroad siding near the northwest corner of the building. The
\n excavation measures approximately 12 feet (length) by 5 feet (width) by
\n 1 foot (depth). This area is enclosed by temporary orange fencing.<\/p>\n
. Four (4) 55 gallon steel drums of contaminated soil are staged in the
\n rear parking lot area near the northwest corner of the building.
\n Hazardous waste labels are affixed to each of the drums. The labels
\n indicate that the waste material was generated on December 7, 1994.<\/p>\n
. Spillage of a petroleum product was found adjacent to a 5 gallon pail in
\n the rear parking lot area. The spillage was confined to a small area of
\n pavement and was located approximately 20 feet from the nearest storm
\n water drain.<\/p>\n
. Approximately 2 cubic yards of soil were covered with plastic sheeting
\n and stockpiled in the rear parking lot area. It is believed that this
\n material was generated during recent excavation of contaminated soils
\n above the railroad siding.<\/p>\n
. Numerous stormwater drains are located in the rear loading dock and
\n parking lot areas. Visual observations indicate that the discharge point
\n of the drains is to Woodland Lake, located immediately to the north and
\n east of the site.<\/p>\n
Inside Areas
\n ————<\/p>\n
. The building is currently used for office and warehousing purposes,
\n primarily storage of food and beverage products.<\/p>\n
[LETTERHEAD OF THE WHITMAN COMPANIES APPEARS HERE]<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 11<\/p>\n
. Two (2) 55 gallon drums of antifreeze were located along the interior
\n north wall of the warehouse. Three (3) 15 gallon drums of multi-purpose
\n grease were also stored at this location.<\/p>\n
. Two (2) unidentified 55 gallon drums were located along the interior
\n north wall of the warehouse. Oil spillage was evident on the top of
\n these drums. One (1) 15-gallon drum of gear lubricant was also stored at
\n this location.<\/p>\n
. A vehicle service area, with one (1) electric lift, was located at the
\n northwest corner of the warehouse. A Safety-Kleen parts washer, wash
\n sink, and miscellaneous small containers of automotive fluids were
\n located in this area. A closet adjoining the vehicle service area
\n contained a 275-gallon aboveground motor oil tank, one (1) 55-gallon
\n drum of antifreeze and two (2) 15-gallon drums of gear oil. Several
\n other closets were locked and inaccessible at the time of the site
\n inspections.<\/p>\n
. Some oil staining was evident on the slab floor in the vehicle service
\n area; however, no significant spillage was found and there were no
\n floor drains visible in this area.<\/p>\n
No records of adverse environmental history were found at the Pequannock
\nTownship municipal offices. A review of building permits recorded by the
\nTownship from January 1988 to the present revealed no permits for environmental
\nwork, including, but not limited to, UST removal or asbestos abatement projects.<\/p>\n
A historical aerial photograph review for 1961, 1966, 1976, 1986 and 1990
\nwas conducted by Whitman at the Morris County Planning Department on August 12,
\n1996. The results of the aerial photograph review are presented below.<\/p>\n
The subject property was occupied by several small buildings\/sheds and
\nfacilities, which may be consistent with a sand\/gravel mining operation from
\npre-1961 through 1966. The existing warehouse facility was evident on the 1976,
\n1986, and 1990 aerial photographs. Several small sheds, formerly located on the
\nnortheast portion of the site, were removed between 1986 and 1990. The parking
\nlot area may have been unpaved prior to 1976.<\/p>\n
The adjoining northern and eastern properties have been occupied by
\nWoodland Lake from pre-1961 to the present. The existing industrial building has
\nbeen located on the adjoining southern property from pre-1961 to present. Land
\nuse on the adjoining western properties was residential and agricultural in
\nnature from pre-1961 through 1976. Farmland was abandoned and converted into
\nresidential land use between 1976 and 1986.<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 12<\/p>\n
6.0 SUMMARY AND RECOMMENDATIONS
\n —————————<\/p>\n
Several significant areas of environmental concern (AECs) were addressed by
\nArrow Group Industries, the former operator of the site (1969-1991), under the
\nNJDEP ISRA program. The ISRA initial notice forms were submitted to the NJDEP
\nduring 1988. A Negative Declaration Approval was issued by NJDEP in December
\n1991.<\/p>\n
Additional cleanup work is being conducted at the site, subsequent to the
\nISRA investigation, under the NJDEP’S voluntary cleanup program. Based on
\ninformation obtained from the NJDEP Northern Field Office, there is one (1) AEC
\nthat may require further investigation and\/or remediation. The case remains open
\nat this time, pending NJDEP receipt and review of the most recent sampling data.
\nWhitman recommends that Aladdin Mills receive some assurance from the current
\ntenant that the remedial activity specified in the MOA will be completed in a
\ntimely manner and that the cleanup will not extend to other areas of the site.<\/p>\n
The subject property was listed as a RCRA Generator site in connection with
\nprior disposal of hazardous materials generated by Arrow Group Industries. The
\nproperty was also listed as a UST site in connection with the former underground
\ndiesel tank. The subject property was not listed in any of the other
\nenvironmental databases researched by EER.<\/p>\n
Contaminated soil remains on site at two (2) locations in the rear parking
\nlot area. The drums of contaminated soil generated on December 7, 1994 are of
\nparticular concern, since RCRA regulations require that all hazardous materials
\nbe disposed within 90 days. The small pile of stockpiled soil was generated much
\nmore recently, apparently within the past several weeks.<\/p>\n
Whitman recommends that all chemical products, including known or
\nsuspected hazardous materials, be properly removed or disposed off site, prior
\nto occupancy of the building by Aladdin Mills. In addition to the drums of
\ncontaminated soil located outside the building, several drums located inside the
\nfacility may need to be identified, prior to disposal.<\/p>\n
Mr. Al Schneider
\nAladdin Mills
\nAugust 23, 1996
\nPage 13<\/p>\n
We appreciate the opportunity to assist your company with the anticipated
\nmove to the warehouse facility in Pequannock Township, New Jersey. If you have
\nany questions, please contact our office at (908) 390-5858.<\/p>\n
Very truly yours,<\/p>\n
\/s\/ Gary Rakow
\n Gary Rakow
\n Project Scientist<\/p>\n
cc: Robert Ritter, Esquire
\n Janet Hennick, SBWE
\n Mel Opper, The Opper Group<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_cloudinary_featured_overwrite":false},"corporate_contracts_companies":[8244],"corporate_contracts_industries":[9462],"corporate_contracts_types":[9601,9579],"class_list":["post-41690","corporate_contracts","type-corporate_contracts","status-publish","hentry","corporate_contracts_companies-mohawk-industries-inc","corporate_contracts_industries-manufacturing__textiles","corporate_contracts_types-land__nj","corporate_contracts_types-land"],"acf":[],"_links":{"self":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts\/41690","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts"}],"about":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/types\/corporate_contracts"}],"wp:attachment":[{"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/media?parent=41690"}],"wp:term":[{"taxonomy":"corporate_contracts_companies","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_companies?post=41690"},{"taxonomy":"corporate_contracts_industries","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_industries?post=41690"},{"taxonomy":"corporate_contracts_types","embeddable":true,"href":"https:\/\/corporate.findlaw.com\/legal-api\/wp-json\/wp\/v2\/corporate_contracts_types?post=41690"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}