<PAGE>
EXHIBIT 10.35
DATE: DECEMBER 31, 2004
OFFICE LEASE AGREEMENT
FOR
THE COURTYARD BUILDING
5301 N. FEDERAL HIGHWAY
BOCA RATON, FLORIDA 33487
CONECA
PROPERTIES, LTD.
AS LANDLORD
AND
MYDOCONLINE, INC.
AS TENANT
1
<PAGE>
THE COURTYARD BUILDING
INDEX TO OFFICE LEASE AGREEMENT
Paragraph # Topic
1. Definitions
2. Lease Grant
3. Lease Term
4. Use
5. Rental
6. Payment of Common Area
Maintenance/Operating Expenses
7. Services to be
Furnished by Landlord
8. Improvements to the
Premises
9. Maintenance and Repair
of Building by Landlord
10. Care of Premises by
Tenant
11. Repairs and Alterations by
Tenant
12. Graphics
13. Use of Electrical Services
by Tenant
14. Parking
15. Law and Regulation
16. Building Rules and
Regulations
17. Entry by Landlord
18. Assignment and
Subletting
19. Mechanics Liens
20. Property Insurance
21. Liability Insurance
22. Assumption of Risks
23. Waiver of Subrogation
Rights
24. Casualty Damage
25. Condemnation
26. Damage from Certain
Causes
27. Events of
Default/Remedies
28. Property Taxes and
Assessments
29. Peaceful Enjoyment
30. Relocation
31. Holding Over
32. Subordination to
Mortgage
33. Landlord's Lien
34. Attorney's Fees
35. No Implied Waiver
36. Limitation of Liability
2
<PAGE>
PARAGRAPH# TOPIC PAGE #
37. Security Deposit
38. Last Month Rent Deposit
39. Notices
40. Severability
41. Recordation
42. Governing
43. Time of Performance
44. Force Majeure
45. Transfers by Landlord
46. Brokers
47. Effect of Delivery of this
Lease
48. Captions
49. Relationship of Parties
50. Exhibits
51. Prior Agreements and
Amendments
52. Binding Effect pg.26
53. Americans With Disabilities
Act
54. Radon Gas
55. Compliance with
Environmental Laws
56. Option to Extend Term
57. Right of First refusal on
Contiguous Space
TOPIC EXHIBIT LETTER PAGE #
Attachments:
Legal Description Exhibit "A"
Floorplan
Exhibit "B"
Work Letter
Exhibit "C"
Rules And Regulations Exhibit "D"
3
<PAGE>
OFFICE LEASE AGREEMENT
THIS LEASE AGREEMENT (this "Lease") is made
and entered into on the 31st day of
December, 2004 by and between CONECA
PROPERTIES, LTD, a Florida limited
partnership, having an office at 210 N.
University Drive, Suite 212, Coral
Springs, Florida 33071-7339 (hereinafter
referred to as "Landlord"), and
MYDOCONLINE, INC., a Delaware Corporation
(hereinafter referred to as "Tenant"),
and wholly owned subsidiary of Zix
Corporation, a Texas corporation.
WITNESSETH:
1. DEFINITIONS. Landlord and Tenant hereby
agree that the words and phrases set
forth below shall, when used in this Lease
have the following meaning:
(a)
"Building" shall mean the office building located upon the real
property
(the "Property") described in Exhibit "A" attached hereto and
incorporated herein. Reference made to the Property in this Lease
shall be
deemed to
include the Building unless expressly provided otherwise.
(b)
"Premises" shall mean the suite of offices located within the
Building,
know as Suite #260 and outlined on the floor plan attached to
this Lease
as Exhibit "B" incorporated herein. The Premises are stipulated
for all
purposes to have a floor area of approximately 1,835 square
feet,
such size
being hereby agreed upon, which includes any portion of the
"Common
Areas" allocated to the Premises.
(c) "Lease
Rental Rate" shall mean the Base Rent as shown below (*)
RENT SCHEDULE
<TABLE>
<CAPTION>
OPER.
BASE RENT
EXP.(EST) BASE
RENT BASE RENT
OP. EXP.
SUB TOTAL
STATE
SUB TOTAL
ELECTRIC
TOTAL RENT
PERIOD
$/SF/yr.
$/SF/yr.
$/Period $/Mo.
$/Mo.
$/Mo
TAX
Incl. Tax $/Mo.
$/
Month
------
--------
--------
-------- -----
-----
----
---
--------- -----
--------
<S>
<C>
<C>
<C>
<C>
<C>
<C>
<C> <C>
<C>
<C>
January,05 17.00
7.54
2,599.58
2,599.58
1,152.99
3,752.58
243.92
3,996.49 305.83
4,302.33
Feb. 05
none
None
None
Mar.05-Jan 06 17.00 7.54
28,595.42
2,599.58
1,152.99
3,752.58
243.92
3,996.49
305.83 4,302.33
</TABLE>
(*)adjusted pursuant to Paragraph 5 hereof.
(d)
"Commencement Date" shall be January 1, 2005 or the date determined
in
accordance
with subparagraph 3(c) hereof.
4
<PAGE>
(e) "Lease
Term" shall mean a term commencing on the Commencement Date and
continuing
until thirteen (13) months after the first day of the first
full month
following the Commencement Date.
(f) A
"Security Deposit" shall mean the Sum of $8,600.00
(g)
deleted
(h) "First
Month'Rent" shall mean the sum of $4,302.33 (Jan. 2005), incl.
tax
(i)
"Common Areas" shall mean those areas devoted to corridors,
elevator
foyers and
elevator cabs, restrooms, mechanical rooms, janitorial closets,
electrical
and telephone closets, vending areas and other similar
facilities
provided for the common use or benefit of tenants generally
and/or the
public.
(j)
"Service Areas" shall mean those areas within the exterior walls
of
the
Building used for elevator mechanical rooms, building stairs,
fire
towers,
elevator shafts, flues, vents, stacks, pipe shafts and vertical
ducts (but
shall not include any such areas designated for the exclusive
use or
benefit of the Tenant).
(k)
"Exterior Common Areas" shall mean those portions of the
Property
which are
not located within the Building and which are provided and
maintained
for the common use and benefit of Landlord and tenants of the
Building
generally and the employees, invitees and licensees of Landlord
and such
tenants; including, without limitation, all parking areas,
enclosed
or otherwise, and all streets, sidewalks and landscaped areas.
(l)
"Building Standard Improvements" when used herein, shall mean
those
improvements (including the "Shell Improvements" and the
"Allowance
Items")
constructed or installed within the Premises which Landlord
shall
agree to
provide according to the "Work Letter" attached hereto as
Exhibit
"C" and
incorporated herein for all purposes. "Building Grade" shall
mean
the type,
brand and/or quality of materials Landlord designates from time
to time to
be the minimum quality to be used in the Building or the
exclusive
type, grade or quality of material to be used in providing the
Building Standard
Improvements.
(m)
Operating Expense Contribution: Tenant shall pay Operating
Expense
Contribution equal to Tenant's proportionate share of the annual
Operating
Expenses,
estimated at $7.54 per rentable square foot per annum including
utilities
(excluding electric), real estate taxes and insurance for year
2004 &
2005, subject to adjustment at the beginning of each calendar
year
for
remainder of lease. Operating Expense Contribution shall be paid
in
equal monthly
installments along with the Base Rent andf electric.
(n)
Electric: Tenant shall pay electric equal to Tenant's
proportionate
share of
the annual total electric expenses, estimated at $2.00 per
rentable
square foot per annum including air conditioning for the years
2004 &
2005, subject to adjustment at the beginning of each calendar
year
for
remainder of lease. Operating Expense Contribution shall be paid
in
equal
monthly installments along with the Base Rent and Operating
Expenses.
[See table in 1(c)]
5
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2. LEASE GRANT. Subject
to and upon the terms, provisions and conditions
herein set forth, and each in consideration of the covenants of
the
other hereunder, Landlord leases to Tenant and Tenant leases
from
Landlord the Premises.
3. LEASE TERM.
(a) This
Lease shall continue in force during a period beginning on
Commencement Date and continuing until the expiration of the Lease
Term,
unless
this Lease is sooner terminated or extended to a later date
under
any other
term or provision hereof.
(b) If by
the date specified as the Commencement Date in Paragraph 1(d),
the
Premises have not been substantially completed pursuant to the
Work
Letter due
to omission, delay or default by Tenant or anyone acting under
or for
Tenant or due to any cause other than Landlord's default,
Landlord
shall have
no liability for such failure to complete, and the obligations
of this
Lease (including without limitation the obligation to pay rent)
shall
nonetheless commence as of said Commencement Date.
(c) If
however the Premises are not substantially completed by the
date
specified
as the Commencement Date in Paragraph l(d) and such failure to
complete
is due to default on the part of Landlord, then, as Tenant's
sole
remedy for
the delay in Tenant's occupancy of the Premises, the
Commencement Date shall be delayed (and the rent herein provided
shall not
commence)
until the earlier of either (i) the date of actual occupancy by
Tenant or
(ii) the date of substantial completion of the work which
Landlord
has agreed to perform.
(d) Tenant
agrees to accept possession of the Premises when the Building
Standard
Improvements to the Premises as provided in the Work Letter
have
been
substantially completed. If there are any finishing touches
remaining
to be done
which will not materially interfere with the conduct of
Tenant's
business on the Premises, Tenant will nevertheless accept
delivery
of the Premises and allow Landlord to complete such finishing
touches.
ARTICLE 4
USE
4. USE OF
PREMISES: It is agreed and understood that Tenant shall use the
Premises for general office use only unless
otherwise agreed to in writing by
Landlord. Tenant shall abide by and not
violate any of the Rules and Regulations
set forth on Exhibit "D", annexed hereto
and made a part hereof, and such other
Rules and the Landlord may modify
Regulations as from time to time hereafter.
Landlord shall not be liable to Tenant for
violation of the Rules and
Regulations by any other tenant or such
tenant's employees, agents, invitees or
licensees.
a)
Operation of Tenant's Business: If any governmental license or
permit,
other than
a certificate of occupancy, shall be required for the proper
and lawful conduct of
Tenant's business in the Premises or any part
thereof,
Tenant, at its expense, shall duly procure and thereafter
maintain
such license or permit. Tenant shall, at all times, comply with
the terms
and conditions of each such license or permit. Tenant shall
not,
at any
time, use or
6
<PAGE>
occupy, or
suffer or permit anyone to use or occupy, the Premises, or do
or permit
anything to be done in the Premises, in any manner which may
(i)
violate
the certificate of occupancy for the Premises or for the
Building;
(ii) cause
or be liable to cause injury to the Building or any equipment,
facilities
or systems therein; (iii) constitute a violation of the laws
and
requirements of any public authority or the requirements of
insurance
bodies;
(iv) not permit occupancy of the demised premises in excess of
the
number of
persons designated or allowed by occupational licenses granted
by applicable governmental
agencies or any other regulations; (v) impair
or tend to
impair the character, reputation or appearance of the Building
as a first
class office building; (vi) impair or tend to impair the proper
and
economic maintenance, operation, and repair of the Building and/or
its
equipment,
facilities or systems; (vii) annoy or inconvenience or tend to
annoy or
inconvenience other tenants or occupants of the Building;
(viii)
cause or
violate any provisions of Landlord's fire and extended
liability
coverage,
Landlord shall give notice to Tenant of any non-standard
insurance
provisions.
(b)
Occupancy Density: Intentionally deleted.
5. RENTAL.
(a) Tenant
covenants and agrees to pay during the Lease Term to Landlord
without
any setoff or deduction whatsoever, the Base Rental and all
such
other sums
or money as shall become due hereunder as additional rent (all
of which
are sometimes herein collectively called "Rent"), for the
non-payment of which Landlord shall be entitled to exercise all
such
rights and
remedies as are herein provided in the case of the non-payment
of Base
Rental. The Base Rental payable during each calendar year or
portion
thereof during the Lease Term, as increased pursuant to
subparagraph (e) below, shall be due and payable in twelve (12)
equal
installments on the first day of each calendar month during the
initial
term of
this Lease and any extensions or renewals thereof and Tenant
hereby
agrees to pay such Base Rental and any adjustments thereto to
Landlord
at Landlord's address provided herein (or such other address as
may be
designated by Landlord in writing from time to time). Tenant
agrees
to pay all
such sums in advance, and without notice or demand. If the
Lease Term
commences on a day other than the first day of a month or
terminates
on a day other than the last day of a month, then the
installments of Bass Rental and any adjustments thereto for such
month or
months
shall be prorated, based on a Thirty (30) day month.
(b)
Landlord shall have the same rights and remedies with respect
to
additional
rent as with respect to Fixed Annual Rent. The term "Rent" is
hereby
defined to mean the Fixed Annual Rent and any additional rent
or
other sums
payable by Tenant under this Lease. In the event that any
payment
due Landlord under this Lease shall not be paid on the due date,
a
late charge of
Ten (10%) percent of the delinquent shall be charged by
Landlord.
If any installment of Rent shall remain overdue for more than
Ten (10)
days, an additional late charge in an amount equal to One and
One-half
(1-1/2%) percent per month (18% per annum) of the delinquent
amount
shall be charged by Landlord, such charge to be computed for
the
entire
period for which the amount is overdue and which is in addition
to
and not in
lieu of the Ten percent (10%) late charge or any other remedy
7
<PAGE>
available
to Landlord. In the event that any check, bank draft, order for
payment or
negotiable instrument given to Landlord for any payment under
this Lease
shall be dishonored for any reason whatsoever not attributable
to
Landlord, Landlord shall be entitled to make an administrative
charge
to Tenant
of Twenty-Five and 00/100 ($25.00) Dollars. Tenant recognizes
and agrees
that the aforesaid charges represent, at the time this Lease is
made, a
fair and reasonable estimate and liquidation of the costs of
Landlord
in the administration of the Building resulting from the events
described,
which costs are not contemplated or included in any rent or
other
charges provided to be paid by Tenant to Landlord in this Lease.
Any
charges
becoming due under this paragraph of this Lease shall be deemed
to
be
additional rent due hereunder and shall become due with the
next
ensuing
monthly payment of Fixed Annual Rent.
(c) Tenant
shall pay all sales and use taxes levied or assessed against
all rent
payments due under this Lease simultaneously with each payment
required
hereunder.
(d)
The Base Rental
due for the first full calendar month of the Lease
Term has been deposited with Landlord by Tenant as of the
execution
of this Lease.
(e)
Tenant shall pay
the monthly installments of the Base Rental as same
come due
through the end of the first Lease Year
6. PAYMENT OF COMMON AREA
MAINTENANCE/OPERATING EXPENSES.
(a) In
addition to the Base Rental as the same is Tenant adjusted,
shall
according
to the provisions of this Paragraph pay to Landlord as
additional
rents Tenant's pro rata share of the "Operating Expenses"
incurred
by Landlord in connection with the ownership, operation and
management
of the Property. The Operating Expenses shall be determined in
accordance
with generally accepted accounting principles as applied to the
ownership,
management and operation of such property and shall include the
total of
all expenses and costs of every kind and nature which Landlord
shall pay
or be obligated to pay because of or in connection with the
ownership
and operation of the Property, including but not limited to the
following:
1. Wages
and salaries and all payroll costs or benefits paid to
or on behalf of Landlord's employees engaged in the operation,
maintenance and security of the Property.
2.
Administrative costs of management of the Property, including
a management fee.
3. Costs
of all utilities furnished to the Property, including
water, sewer and electricity.
4. All
supplies and materials used in the operation and
maintenance of the Property.
8
<PAGE>
5. Cost of
any maintenance or service agreements such as alarm or
security service, janitorial service, landscape maintenance,
window cleaning and elevator or air conditioning service.
6. Cost of
all insurance, including but not limited to fire,
casualty, liability and rental abatement insurance applicable
to the Property and Landlord's personal property used in
connection herewith.
7. Cost of
repairs, replacements and general maintenance of the
Property.
8. All
real or personal property taxes (or payments in lieu of
such taxes) exercises, levies, fees, or charges, general and
special, ordinary and extraordinary, unforeseen as well as
foreseen of any kind which are assessed, levied, charged,
confirmed, or imposed by any public authority upon the
Property, its operations or the rent provided for in this
Lease. (It is agreed that Tenant will be responsible for ad
valorem taxes on its personal property and on the value of
leasehold improvements to the extent that same exceeds
Building Standard Improvements as described in Exhibit "C" of
this Lease.)
9.
Amortization of capital improvements made to the Property by
Landlord subsequent to the Commencement Date of this Lease
which will improve the operating efficiency of the Property.
(b)
Operating Expenses shall not include: (1) expenses for repairs
or
other work
occasioned by condemnation or fire or other casualty; (2)
leasing
commissions; (3) interest or amortization of mortgages secured
by
the
Property; (4) any expense fully reimbursed to Landlord by Tenant
or
any other
tenant of the Property, or any expense billed to and paid
directly
by same for their own account or on Landlord's behalf; and (5)
expenses
for repairs or replacement to the extent that same are
reimbursed
by
insurance proceeds.
(c)
Tenant's share of the Operating Expenses shall be in the same
proportionate
amount as the ratio determined by the gross leasable area of
the
Premises as stipulated in Paragraph 1(b) (which includes any
portion
of the
Common Areas allocated to the Premises) over the gross leasable
area of
the Building. [The "Gross Leasable of the Building" shall mean
the
total
floor area within the exterior walls of the Building, less any
portion(s)
of the Service Areas contained herein per Building Owners and
Managers
Association Standards (BOMA)]. Tenant's proportional share is
2.6
%
(d)
Promptly following the Commencement Date, and thereafter
promptly
following
the beginning of each calendar year occuring during the term of
this
Lease, or any extension or renewal thereof, Landlord shall deliver
to
Tenant a
statement setting forth Landlord's projection of the Operating
Expenses
for the then current calendar year and Tenant's pro-rata share
thereof
based on the portion of such calendar year during which this
Lease
is in
effect. Tenant's share of the projected Operating Expenses shall
be
9
<PAGE>
payable in
equal monthly installments due on the first day of each
calendar
month for the remaining months of such calendar year.
(e)
Commencing with Landlord's statement delivered at the beginning of
the
first full
calendar year occurring during the term of this Lease, Landlord
shall also
set forth the actual amount of Operating Expenses incurred
during the
preceeding calendar year, Tenant's pro rata share of those
actual
operating Expenses (to the extent that this Lease was in effect
during
that calendar year) and any underpayment or overpayment by
Tenant
based on
Tenant's monthly payment(s) (if any) of the projected Operating
Expenses
made during that preceeding calendar year. In the event of any
underpayment by Tenant, Tenant shall pay the full amount to
such
deficiency
to Landlord within thirty (30) days of receipt of Landlord's
statement.
Any overpayment by Tenant shall be deducted from the monthly
installments of Tenant's share of the projected Operating Expenses
for the
ensuing
calendar year as the same become due.
(f) Prior
to the expiration date of the Lease Term Landlord shall deliver
to Tenant
(i)a statement setting forth Tenant's share of the actual
Operating
Expenses incurred during the final Lease Year up to and
including
the date of expiration of the Lease Term and (ii) any
underpayment or overpayment of same based on Tenant's payment of
Tenant's
share of
the projected Operating Expenses made during the final Lease
Year. In
the event of any such underpayment Tenant shall pay the full
amount of
same to Landlord on or before the date of the expiration of the
Lease
term. If Tenant has overpaid Landlord shall reimburse Tenant
the
full
amount of such overpayment not later than the expiration date of
the
Lease
Term. The respective obligations of the parties hereto pursuant
to
this
Paragraph 6 shall survive the termination of this Lease.
(g) Each
Operating Statement given by Landlord, shall be conclusive and
binding
upon Tenant (a) unless within thirty (30) days after the
receipt
thereof,
Tenant shall notify Landlord that it disputes the accuracy of
said
Operating Statement, specifying the particular respects in which
the
Operating
Statement is claimed to be incorrect and (b) if such dispute
shall not
have been settled by agreement, either party may submit the
dispute to
arbitration in accordance with Chapter 682, Florida Statutes.
The
arbitration shall take place in Broward County, Florida and shall
be
held in
accordance with the rules of the American Arbitration
Association.
A panel of
three (3) arbitrators shall be selected by the parties to the
dispute
from a panel selected by the American Arbitration Association
and
the award
of the three (3) arbitrators shall be final and non-appealable
and
judgment may be entered in any court of competent jurisdiction. In
the
event the
parties are unable to agree on three (3) arbitrators, each
party
shall
select one (1) arbitrator from the panel and the two
arbitrators
selected
shall select the third arbitrator. The matter must be submitted
to
arbitration within sixty (60) days after receipt of each
Operating
Statement;
and pending the determination of such dispute by agreement or
arbitration as aforesaid, Tenant shall within ten (10) days after
receipt
of such
Operating Statement, pay Operating Expense Contribution in
accordance
with Landlord's statement, without prejudice to Tenant's
position.
If the dispute shall be determined in Tenant's favor, Landlord
shall
forthwith pay to Tenant the amount of Tenant's overpayment of
Operating
Expense Contribution resulting from compliance with the
Operating
Statement. However, in no case shall Tenant delay or withhold
payment of
Base
10
<PAGE>
Rent and
Operating Expense Contribution pending resolution of a dispute
with
regard to Operating Expenses.
7. SERVICES TO BE FURNISHED BY LANDLORD.
Landlord agrees to furnish Tenant the
following services:
(a) Water
at those points of supply provided for general use of Tenant
and
other
tenants in the Building;
(b)
Routine maintenance and electric lighting service for Common Areas
and
Service
Areas of the Building in the manner and to the extent deemed by
Landlord
to be standard.
(c)
Janitorial service to the Premises and all Common Areas Mondays
through
Fridays, exclusive of normal business holidays; provided,
however,
if
Tenant's floor covering or other improvements to the Premises
require
special
treatment, Tenant shall pay the additional cleaning cost
attributable thereto as additional rent upon presentation of a
statements
therefore by
Landlord.
(d)
Subject to the provisions of Paragraph 13, facilites to provide
all
electrical
current required by Tenant in its use and occupancy of the
Premises.
(e) All
Building Standard fluorescent bulb replacement in the Premises
and
fluorescent and incandescent bulb replacement in the Common Areas
and
Service
Areas.
(f)
Security in the form of limited access to the Building during
other
than
Normal Business Hours shall be provided in such form as
Landlord
deems
appropriate Landlord, however, shall have no liability to
Tenant,
its
employees, agents, invitees or licensees for losses due to theft
or
burglary,
or for damages done by unauthorized persons on the Premises and
neither
shall Landlord be required to insure against any such losses.
Tenant
shall cooperate fully in Landlord's efforts to maintain security
in
the
Building and shall follow all regulations promulgated by Landlord
with
respect
thereto.
(g)
Elevator service to each floor of the Premises provided that
Tenant
shall be
permitted to use such elevators for the purpose of moving bulky
property
in and out of the Building only during other than Normal
Business
Hours and
only after first obtaining Landlord's consent to be submitted
not less
than five (5) days in-advance of each move. Tenant shall
promptly
reimburse
Landlord for all costs associated with the after-hours
operation
of the
elevator service for moving purposes, including without
limitation
the cost
of any operator or security personnel and Tenant shall also
promptly
reimburse Landlord's cost to repair any damage to the elevator
cab(s) or
the Building resulting from Tenant's moving.
The
failure by Landlord to any extent to furnish the defined
services
noted above in whole or in parts or the
interruption or termination of same,
resulting from causes beyond the reasonable
control of Landlord shall not render
Landlord liable in any respect nor be
construed as an eviction (constructive or
otherwise) of Tenant nor cause an abatement
of rent nor relieve Tenant from the
obligation to fulfill any covenant or
agreement hereof. Should any of the
11
<PAGE>
equipment or machinery used in the
provision of such services cease for any
reason to function properly, Tenant shall
have no claim for offset or abatement
of rent or damages on account of an
interruption in service occasioned thereby,
or resulting therefrom.
8. IMPROVEMENTS TO THE PREMISES. Landlord
shall be obligated to construct or
install at Landlord's expense, only those
Building Standard Improvements as
provided in the Work Letter attached hereto
as Exhibit "C". All installations
and improvements now or hereafter
constructed in or placed on the Premises other
than the said Building Standard
Improvements shall be for Tenant's account and
at Tenant's sole cost and expense. Tenant
shall pay all ad valorem taxes
assessed separately on any improvements to
the Premises and all increased
insurance premiums thereon.
9. MAINTENANCE AND REPAIR OF BUILDING BY
LANDLORD. Landlord agrees to keep in
good repair the roof, foundations,
appurtenances, parking area, and exterior
walls and windows of the Building and
underground utility and sewer pipes
outside of the exterior walls of said
Building. Landlord shall repair and
maintain all heating, air conditioning,
lighting, electrical, ventilation,
plumbing, and storm drainage equipment.
Except as otherwise expressly provided
herein, Landlord shall not be required to
make any repairs to the Premises.
10. CARE OF PREMISES BY TENANT. Tenant
shall, at its expenses keep the Premises
in good repair and in a clean, attractive,
first-class tenantable condition
(including without limitation all
furniture, equipment, fixtures and decorations
located in the Premises). Tenant agrees not
to commit or allow any waste to be
committed on any portion of the Premises or
the Property and at the termination
of this Lease to deliver up the Premises to
Landlord in as good condition as at
the date of the Commencement Date, ordinary
wear and tear excepted.
11. REPAIRS AND ALTERATIONS BY TENANT.
Tenant covenants and agrees with Landlord
at Tenant's own cost and expense, to repair
any damage done to the Premises, the
Building or the Property or any part
thereof including replacement of damaged
portions or items where such damages are
caused by Tenant or Tenant's agents,
employees, invitees or visitors, and Tenant
covenants and agrees to make all
such repairs as may be required to restore
the Premises, the Building or the
Property to as good a condition as it was
in prior to such damage. All such work
or repairs by Tenant shall be effected in
compliance with all applicable laws;
provided, howevere if Tenant fails to make
such repairs or replacements then
Tenant shall pay the cost thereof to the
Landlord within ten (10) days of
Landlord's demand therefore as additional
rent. Tenant agrees with Landlord not
to make or allow to be made any alterations
to the Premises, install any vending
machines on the Premises, or place signs,
furnishings equipment or any window
coverings on any part of the Premises which
are visible from outside the
Premises without first obtaining the prior
written consent of Landlord in each
such instance, which consent may be given
on such conditions as Landlord may
elect. Any and all alterations or additions
to the Premises made by Tenant shall
become the property of Landlord upon
termination of this Lease (except for
movable equipment or furniture owned by
Tenant). Landlord may nonetheless
require Tenant to remove any and all
fixtures, equipment and other improvements
installed on the Premises. In the event
that Landlord so elects and Tenant fails
to remove such
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improvements, Landlord may remove such
improvements at Tenant's cost, and Tenant
shall pay Landlord on demand of restoring
the Premises to Building Standard.
12. GRAPHICS. Landlord shall provide and
install at Tenant's cost all letters or
numerals on doors entering the Premises.
All such letters and numerals shall be
in the standard graphics as approved by
Landlord for the Building, and no others
shall be permitted on the Premises without
Landlord's prior written consent.
13. USE OF ELECTRICAL SERVICES BY TENANT.
Tenant's use of electrical services
furnished by Landlord shall not exceed
either in voltage, rated capacity or
overall load that, which Landlord deems to
be standard for general business
office use in a manner comparable to other
Building tenants. In the event Tenant
shall request that it be allowed to consume
electrical services in excess of
that deemed by Landlord to be standard for
Building tenants, Landlord may refuse
to consent to such usage or may consent
upon such conditions as Landlord elects
(including the requirement that submeters
be installed at Tenant's expense).
14. PARKING.
(a) During
the term of this Lease, Landlord shall provide Tenant with
unassigned
parking spaces in the uncovered parking areas located on the
Property,
such parking spaces and all driveways and walkways located on
the
Property to be used by Tenant on a non-exclusive basis with
Landlord
and other
tenants of the Building, their guests and invitees. All
uncovered
parking shall be provided at no charge to Tenant.
(b) In
addition to the uncovered parking spaces Landlord and Tenant
hereby
agree that
Tenant shall have the use of one (1) assigned parking space in
the
parking garage located on the Property for the term of the Lease,
such
parking
space to be used only by the of principals and employees of
Tenant.
Such space shall be forfeited in the event Tenant is ever in
material
Default of Lease, including any payment default, after received
Notice of
Default and not curing samewithin the time period specified
herein.
(c)
Landlord shall have a right to designate the location of
Tenant's
parking
and alter such designation upon reasonable notice to Tenant.
Landlord
shall also have the right to establish or modify the methods
used
to control
parking on the Property, including without limitation the
installation of certain control devices or the hiring of
parking
attendants.
(d)
Landlord shall not be liable for any damage to or any theft of
any
vehicle,
or any contents Tenant will lose any reserved parking
privileges
at any
time in which Tenant is in an event of Default under the Terms
and
Conditions
of this Lease Agreement.
15. LAWS AND REGULATIONS. Tenant agrees to
comply with all applicable laws,
ordinances, rules and regulations of any
governmental entity, agency or
authority having jurisdiction of the
Premises of Tenant's use thereof.
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<PAGE>
16. BUILDING RULES AND REGULATIONS. Tenant
will comply with the reasonable rules
and regulations of the Building adopted and
altered by Landlord from time to
time and will cause all of its agents,
employees, invitees and visitors to do
so. Landlord shall give Tenant notice of
all such rules and regulations and any
changes thereto, and Tenant shall be
charged with compliance with such rules and
regulations as the same may be changed from
time to time from the date of said
notice.
17. ENTRY BY LANDLORD. Tenant agrees to
permit Landlord or its agents or
representatives to enter into and upon any
part of the Premises at all
reasonable hours upon reasonable notice
(and in emergencies at all times) to
inspect the conditions, occupancy or use
thereof or to show the Premises to
prospective purchasers, mortgagees, tenants
or insurers, or to clean or make
repairs, alterations or additions thereto;
and Tenant shall not be entitled to
any abatement or reduction of rent by
reason thereof.
18. ASSIGNMENT AND
SUBLETTING.
(a) Tenant
shall not assign, sublease, transfer, pledge or encumber this
Lease or
any interest therein without Landlord's prior written consent,
whose
consent shall not be unreasonably withheld, conditioned, delayed
or
denied,
except (1) to an affiliate of Tenant or (2) to a purchaser of
all
or
substantially all the business of Tenant or a successor-in-interest
to
the
business of Tenant so long as (A) Tenant's obligations hereunder
are
assumed by
the acquiring entity or successor in interest and (B) the
tangible
net worth of the surviving or created entity is not less than
the
tangible
net worth of Tenant as of the date of execution of this Lease:
or
Tenant
shall in no event be allowed to enter into a partial assignment
of
tenant's
leasehold interest. Any attempted assignment, sublease or other
transfer
or encumbrance by Tenant in violation of the terms and
covenants
of this
Paragraph shall be void.
(b) In the
event that Tenant shall desire Landlord's consent to either the
subletting
of the Premises in whole or in parts or the assignment of
Tenant's
entire interest under the Lease, Tenant shall give Landlord one
(1)
month's prior written notice thereof
(c)
Notwithstanding Landlord's consent to any assignment or subletting
by
Tenant,
Tenant shall remain liable for the full and faithful
performance
of the
covenants and conditions of this Lease unless expressly released
in
writing by
Landlord.
(d) Should
Landlord consent to such assignment of the Lease, or to a
sublease
of all or any part of the Leased Premises, Tenant does hereby
guarantee
payment of all rent herein reserved until the expiration of the
term
hereof and no failure of Landlord to promptly collect from any
assignee
or sublessee, or any extension of the time for payment of such
rents,
shall release or relieve Tenant from its guaranty or obligation
of
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<PAGE>
payment of
such rents. Any assignment by Landlord shall not relieve Tenant
of its
obligations hereunder.
(e) The
form of the Sublease is substantially the same form as the
current
lease. The
Sublessee shall provide first, last and security deposits.
(f)
Reasonable grounds for deciding the Tenant's request by
Landlord
include:
(i) Financial strength of the proposed sublessee/assignee must
be
at least
equal to that of the existing tenant; (ii)