5,495 square feet
0000 Xxxx Xxxx #000
Xxxxxxx, XX 00000
LEASE AGREEMENT
STATE OF TEXAS
COUNTY OF XXXXXX
This Lease Agreement, made and entered into by and between Connecticut General
Life Insurance Company, a Connecticut Corporation hereinafter referred to as
"Landlord," and TekGraf, Inc., a Texas Corporation hereinafter referred to as
"Tenant".
WITNESSETH:
1. Premises and Term: In consideration of the obligation of Tenant to pay rent
as herein provided, and in consideration of the other terms, provisions and
covenants hereof, Landlord hereby demises and leases to Tenant, and Tenant
hereby takes from Landlord certain premises situated within the County of
Xxxxxx, State of Texas, more particularly described as follows:
Approximately 5,495 square feet of office and warehouse space located in a
building containing approximately 23,795 square feet situated on 6,101 acres of
land out of Xxxxx 0, Xxxxxxx "X", Xxxxxxxx Xxxxxxxx Xxxx, recorded in Volume
294, Page 00, Xxxxxx Xxxxxx Xxx Xxxxxxx, Xxxxxxx, Xxxxx and being more
particularly described as 0000 Xxxxxxxx Xxxxx, Xxxxx 000, Xxxxxxx, Xxxxx 00000,
as shown in Exhibit "A". Further described as Westport #8 situated within a
project known as Westport Park consisting of 42.8760 acres
together with all rights, privileges, easements, appurtenances and immunities
belonging to or in any way pertaining to the said premises and together with the
buildings and other improvements erected upon said premises (the said real
property and the buildings and improvements thereon being hereinafter referred
to as the "premises").
To have and to hold the same for a term commencing on March 1, 1994 and ending
February 28, 1997, thirty-six (36) months thereafter. Tenant acknowledges that
it has inspected and accepts the premises, and specifically the buildings and
improvements comprising the same, in their present condition as suitable for the
purpose for which the premises are leased. Taking of possession by Tenant shall
be deemed conclusively to establish that said buildings and other improvements
are in good and satisfactory condition as of when possession was taken. Tenant
further acknowledges that no representations as to the repair of the premises,
nor promises to alter, remodel or improve the premises have been made by
Landlord, unless such are expressly set forth in this lease. If this lease is
executed before the premises become vacant or otherwise available and ready for
occupancy, or if any present tenant or occupant of the premises holds over, and
Landlord cannot acquire possession of the premises prior to the date above
recited as the commencement date of this lease, Landlord shall not be deemed to
be in default hereunder, and Tenant agrees to accept possession of the premises
at such time as Landlord is able to tender the same, which date shall
thenceforth be deemed the "commencement date", and Landlord hereby waives
payment of rent covering any period prior to the tendering of possession to
Tenant hereunder. After the commencement date Tenant shall, upon demand, execute
and deliver to Landlord a letter of acceptance of delivery of the premises.
2. Base Rent and Security Deposit.
a) Tenant agrees to pay to Landlord rent for the premises in advance, without
demand, deduction or set off, for the entire term hereof at the rate of Three
Thousand Two Hundred Ninety Seven and no/100------------ Dollars ($ 3,297.00)
per month. One such monthly installment shall be due and payable on the date
hereof and a like monthly installment shall be due and payable on or before the
first day of each calendar month succeeding the Commencement Date recited above
during the hereby demised term, except that the rental payment for any
fractional calendar month at the commencement or end of the lease period shall
be prorated.
b) In addition, Tenant agrees to deposit with Landlord on the date hereof the
sum of Two Thousand Eight Hundred Forty Eight and no/100-------- Dollars
($2,848.00), which sum shall be held by Landlord, without obligation for
interest, as security for the performance of Tenant's covenants and obligations
under this lease, it being expressly understood and agreed that such deposit is
not an advance rental deposit or a measure of Landlord's damages in case of
Tenant's default. Upon the occurrence of any event of default by Tenant,
Landlord may, from time to time, without prejudice to any other remedy provided
herein or provided by law, use such fund to the extent necessary to make good
any arrears of rent or other payments due Landlord hereunder, and any other
damage, injury, expense or liability caused by such event of default; and Tenant
shall pay to Landlord on demand the amount so applied in order to restore the
security deposit to its original amount. Although the security deposit shall be
deemed the property of Landlord, any remaining balance of such deposit shall be
returned by Landlord to Tenant at such time after termination of this lease that
all of Tenant's obligations under this lease have been fulfilled.
3. Use. The demised premises shall be used only for the purpose of receiving,
storing, shipping and selling (other than retail) products, materials and
merchandise made and or distributed by Tenant and for such other lawful purposes
as may be incidental thereto. Outside storage, including without limitation,
trucks and other vehicles, is prohibited without Landlord's prior written
consent. Tenant shall at its own cost and expense obtain any and all licenses
and permits necessary for any such use. Tenant shall comply with all
governmental laws, ordinances and regulations applicable to the use of the
premises, and shall promptly comply with all governmental orders and directives
for the correction, prevention and abatement of nuisances in or upon, or
connected with, the premises, all at Tenant's sole expense. Tenant shall not
permit any objectionable or unpleasant odors, smoke, dust, gas, noise or
vibrations to emanate from the premises, nor take any other action which would
constitute a nuisance or would disturb or endanger any other tenants of the
building in which the premises are situated or unreasonably interfere with their
use of their respective premises. Without Landlord's prior written consent,
Tenant shall not receive, store or otherwise handle any product, material or
merchandise which is explosive or highly inflammable. Tenant will not permit the
premises to be used for any purpose or in any manner (including without
limitation any method of storage) which would render the insurance thereon void
or the insurance risk more hazardous or cause the State Board of Insurance or
other insurance authority to disallow any sprinkler credits.
4. Operating Expense Stop
In the event the operating expenses (as defined below) of Landlord for the
project of which the leased premises are a part shall, in any calendar year
during the term of this Lease, exceed the sum of their 1994 base year level,
Tenant agrees to pay as additional rental Tenant's proportionate share of such
excess operating expenses. Tenant's proportionate share as used in this lease
shall mean a fraction, the numerator which is the space contained in the
premises and the denominator of which is the entire space contained in the
building. Landlord shall, within nine months following the close of any calendar
year for which additional rental is due under this paragraph, invoice Tenant for
the additional rental. The invoice shall include in reasonable detail all
computations of the additional rental, and Tenant agrees to pay the additional
rental within ten days following receipt of the invoice. If this Lease shall
terminate on a day other than the last day of a year, the amount of any
additional rental payable by Tenant applicable to the year in which such
termination shall occur shall be prorated on the ratio that the
number of days from the commencement of such year to and including such
termination date bears to 365. If at any time during the term of this Lease,
Landlord has reason to believe the per square foot operating expenses for the
calendar year will exceed the sum set forth above, Landlord may by invoice
direct Tenant to prepay monthly one-twelfth of an amount equal to the additional
rental paid in the previous year, or if no additional rental was paid in the
previous year, then Tenant shall prepay monthly one-twelfth of the amount
Landlord reasonably estimates for Tenant's additional rental for such calendar
year. If the invoice delivered within nine months following the close of a
calendar year in accordance with this subparagraph shows an amount owing by
Tenant that is less than the sum of the monthly payments made by Tenant in the
previous calendar year, the invoice shall be accompanied by a refund of the
excess by Landlord to Tenant. If such invoice shows an amount owing by Tenant
which is more then the sum of the monthly payments made by Tenant in the
previous calendar year. Tenant shall pay such deficiency to Landlord within ten
days after receipt of the invoice. For the year in which this Lease terminates,
Landlord shall have the option to charge Tenant for Tenant's proportionate share
of the excess operating expenses based upon the previous year's excess operating
expenses; Landlord shall invoice Tenant under this option within thirty (30)
days prior to the termination of this Lease or at any time thereafter. Tenant
shall have the right, at its own expense and at a reasonable time, but not more
than once per calendar year, to audit Landlord's books relevant to the
additional rentals due under this paragraph.
The term "operating expenses" as used above includes all expenses incurred with
respect to the maintenance and operation of the project, including but not
limited to, maintenance and repair costs, management fees, wages and fringe
benefits payable to employees of Landlord whose duties are connected with the
operation and maintenance of the project, all services, supplies, repairs,
replacements or other expenses for maintaining and operating the project. The
term "operating expenses" also includes all taxes and installments of special or
general assessments (excluding any assessments for municipal or county street
repairs, widening or replacement) upgrades, changes in, or additions to water
and sewage, including special assessments due to deed restrictions and/or
owners' associations, which accrue against the project of which the leased
premises are a part during the terms of this Lease as well as all insurance
premiums Landlord is required to pay or deems appropriate to pay, including
public liability insurance, with respect to the project. The term "operating
expenses" does not include any capital improvement to the project of which the
leased premises are a part, nor shall it include repairs, restoration or other
work occasioned by fire, windstorm or other casualty, income and franchise taxes
of Landlord, expenses incurred in leasing to or procuring of Tenants, leasing
commissions, advertising expenses, expenses for the renovating of space for new
Tenants, interest or principal payments on any mortgage or other indebtedness of
Landlord, compensation paid to any employee of Landlord above the grade of
building superintendent nor any depreciation allowance or expense.
The Landlord shall have the right to employ a tax consulting firm to attempt to
assure a fair tax burden on the building and grounds within the applicable
taxing jurisdiction. Tenant shall pay to Landlord upon demand from time to time,
as additional rent, the amount of Tenant's "proportionate share" of the cost of
such service.
Notwithstanding the foregoing, Tenant shall be responsible for and shall pay to
Landlord an initial monthly common area maintenance reimbursement of $275.00
which includes Tenant's proportionate share of landscape maintenance, parking
lot maintenance, security (if any), water, sewer and general project utilities,
and these monthly reimbursed expenses shall be excluded from the general expense
calculations for determining "base year level" expenses as discussed above. The
common area maintenance reimbursement shall not increase more than 10% per
annum.
5. Landlord's Repairs. Landlord shall at his expense maintain only the roof,
foundation and the structural soundness of the exterior walls of the building in
good repair, reasonable wear and tear excepted. Tenant shall repair and pay for
any damage caused by Tenant, or Tenant's employees, agents or invitees, or
caused by Tenant's default hereunder. The term "walls" as used herein shall not
include windows, glass or plate glass, doors, special store fronts or office
entries. Tenant shall immediately give Landlord written notice of defect or need
for repairs, after which Landlord shall have reasonable opportunity to repair
same or cure such defect. Landlord's liability with respect to any defects,
repairs or maintenance for which Landlord is responsible under any of the
provisions of this lease shall be limited to the cost of such repairs or
maintenance or the curing of each defect.
6. Tenant's Repairs
a) Tenant shall at its own cost and expense keep and maintain all parts of the
premises (except those for which Landlord is expressly responsible under the
terms of this lease) in good condition, promptly making all necessary repairs
and replacements, including but not limited to, windows, glass and plate glass,
doors, any special office entry, interior walls and finish work, floors and
floor covering, downspouts, gutters, heating and air conditioning systems, dock
boards, truck doors, dock bumpers, paving, plumbing work and fixtures, termite
and pest extermination, regular removal of trash and debris, keeping the parking
areas, driveways, alleys and the whole of the premises in a clean and sanitary
condition. Tenant shall not be obligated to repair any damage caused by fire,
tornado or other casualty covered by the insurance to be maintained by Landlord
pursuant to subparagraph 12(a) below, except that Tenant shall be obligated to
repair all wind damage to glass except with respect to tornado or hurricane
damage.
b) Tenant shall not damage any demising wall or disturb the integrity and
support provided by any demising wall and shall, at its sole cost and expense,
promptly repair any damage or injury to any demising wall caused by tenant or
its employees, agents or invitees.
c) In the event the premises constitute a portion of a multiple occupancy
building, Tenant and its employees, customers and licensees shall have the
exclusive right to use the parking areas, if any, as may be designated by
Landlord in writing, subject to such reasonable rules and regulations as
Landlord may from time to time prescribe and subject to rights of ingress and
egress of other tenants. Landlord shall not be responsible for enforcing
Tenant's exclusive parking rights against any third parties. Further, in
multiple occupancy buildings, if Tenant or any other particular tenant of the
building can be clearly identified as being responsible for obstructions or
stoppage of the common sanitary sewage line, then Tenant, if Tenant is
responsible, or such other responsible tenant, shall pay the entire cost
thereof, upon demand, as additional rent. Tenant shall pay when due its share,
determined as aforesaid, of such costs and expenses in the event Landlord elects
to perform or cause to be performed such work.
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e) Tenant shall, at its own cost and expense will maintain hot water, heating
and air conditioning systems and equipment within the premises.
7. Alterations. Tenant shall not make any alterations, additions or improvements
to the premises (including but not limited to roof and wall penetrations)
without the prior written consent of Landlord. Tenant may, without the consent
of Landlord, but at its own cost and expense and in a good workmanlike manner
erect such shelves, bins, machinery, and trade fixtures as it may deem
advisable, without altering the basic character of the building or improvements
and without overloading or damaging such building or improvements, and in each
case complying with all applicable governmental laws, ordinances, regulations
and other requirements. All alterations, additions, improvements and partitions
erected by Tenant shall be and remain the property of Tenant during the term of
this lease and Tenant shall, unless Landlord otherwise elects as hereinafter
provided, remove all alterations, additions, improvements and partitions erected
by Tenant restore the premises to their original condition by the date of
termination of this lease or upon earlier vacating of the premises; provided,
however, that if Landlord so elects prior to termination of this lease or upon
earlier vacating of the premises, such alterations, additions, improvements and
partitions shall become the property of Landlord as of the date of termination
of this lease or upon earlier vacating of the premises and shall be delivered up
to the Landlord with the premises. All shelves, bins, machinery and trade
fixtures installed by Tenant may be removed by Tenant prior to the termination
of this lease if Tenant so elects, and shall be removed by the date of
termination of this lease or upon earlier vacating of the premises if required
by Landlord; upon any such removal Tenant shall restore the premises to their
original condition. All such removals and restoration shall be accomplished in a
good workmanlike manner so as not to damage the primary structure or structural
qualities of the buildings and other improvements situated on the premises.
8. Signs. Tenant shall have the right to install signs upon the premises only
when first approved in writing by Landlord and subject to any applicable
governmental laws, ordinances, regulations, Landlord's architectural controls,
and other requirements. Tenant shall remove all such signs by the termination of
this lease. Such installations and removals shall be made in such manner as to
avoid injury or defacement of the building and other improvements, and Tenant
shall repair any injury or defacement, including without limitation
discoloration, caused by such installation and/or removal.
9. Inspection. Landlord and Landord's agents and representatives shall have the
right to enter and inspect the premises at any reasonable time during business
hours, for the purpose of ascertaining the condition of the premises or in order
to make such repairs as may be required or permitted to be made by Landlord
under the terms of this lease. During the period that is six (6) months prior to
the end of the term hereof, Landlord and Landlord's agents and representatives
shall have the right to enter the premises at any reasonable time during
business hours for the purpose of showing the premises and shall have the right
to erect on the premises a suitable sign indicating the premises are available.
Tenant shall give written notice to Landlord at least thirty (30) days prior to
vacating the premises and shall arrange to meet with Landlord for a joint
inspection of the premises prior to vacating. In the event of Tenant's failure
to give such notice or arrange such joint inspection, Landlord's inspection at
or after Tenant's vacating the premises shall be conclusively deemed correct for
purposes of determining Tenant's responsibility for repairs and restoration.
10. Utilities. Landlord agrees to provide at its cost water, electricity and
telephone service connections into the premises; but Tenant shall pay for all
water, gas, heat, light, power, telephone, sewer, sprinkler charges and other
utilities and services used on or from the premises, together with any taxes,
penalties, surcharges or the like pertaining thereto and any maintenance charges
for utilities and shall furnish all electric light bulbs and tubes. If any such
services are not separately metered to Tenant, Tenant shall pay a reasonable
portion as determined by Landlord of all charges jointly metered with other
premises. Landlord shall in no event be liable for any interruption or failure
of utility services on the premises.
11. Assignment and Subletting. Tenant will not assign this lease, or allow same
to be assigned by operation of law or otherwise, or sublet the demised premises
or any part thereof without the prior written consent of Landlord.
Notwithstanding any permitted assignment or subletting, Tenant shall at all
times remain directly, primarily and fully responsible and liable for the
payment of the rent herein specified and for compliance with all of its other
obligations under the terms, provisions and covenants of this lease. Upon the
occurrence of an "event of default" as hereinafter defined, if the premises or
any part thereof are then assigned or sublet, Landlord, in addition to any other
remedies herein provided or provided by law, may at its option collect directly
from such assignee or subtenant all rents becoming due to Tenant under such
assignment or sublease and apply such rent against any sums due to Landlord from
Tenant hereunder, and no such collection shall be construed to constitute a
novation or a release of Tenant from the further performance of Tenant's
obligations hereunder.
If Tenant shall propose to sublet or assign this Lease, it shall so notify
Landlord in writing not lease than thirty (30) days prior to the date of the
proposed assignment or subletting, such notice setting forth the name of the
proposed subtenant or assignee, the term, use, rental rate and other particulars
of the proposed subletting or assignment, including without limitation, proof
satisfactory to Landlord that the proposed subtenant or assignee is financially
responsible and will immediately occupy and thereafter use the entire premises
(or any sublet portion thereof) for the remaining term of this lease (or for
the entire term of the sublease, if shorter).
Landlord shall have the option, in the event of any proposed assignment or
subletting, to cancel this lease as of the date the subletting or assignment
described in Tenant's notice is to be effective. The option shall be exercised,
if at all, by Landlord's giving Tenant written notice thereof within twenty
(20) days following Landlord's receipt of Tenant's written request. Upon any
such cancellation Tenant shall pay to Landlord all costs or charges which are
the responsibility of Tenant hereunder, and Tenant shall, at Tenant's own cost
and expense, discharge in full any outstanding commission obligation on the part
of Landlord with respect to this lease. Further, upon any such cancellation
Landlord and Tenant shall have no further obligations or liabilities to each
other under this lease, except with respect to obligations or liabilities which
accrue hereunder, as of such cancallation date in the same manner as if such
cancellation date were the date originally fixed for the expiration of the term
hereof. Without limitation, Landlord may lease the premises to the prospective
subtenant or assignee, without liability to the Tenant. Landlord's failure to
exercise any right hereunder shall not waived Landlord's right as to any
subsequent proposed sublease or assignment, nor shall any such failure be deemed
to constitute Landlord's approval of the proposed sublease or assignment.
If Landlord does not cancel this lease, Landlord agrees to approve any
assignment by Tenant to any corporation succeeding to substantially all the
business and assets of Tenant by merger, consolidation, purchase of assets or
otherwise, or to any assignment or subletting to a corporation which is an
affiliate of Tenant. In other cases, Landlord agrees not to unreasonably
withhold approval of any proposed subletting or assingment as to which Landlord
declines its rights of cancellation hereunder provided such proposed transaction
is consummated within thirty (30) days after Landlord's refusal or failure to so
recapture, and upon the same terms and conditions disclosed to Landlord in
Tenant's notice, and with another financially responsible party whose use of the
demised premises will not depreciate the value of the premises, or the value of
the property adjacent thereto, or will not be extra hazardous with reference to
the risk of fire or other hazards. Any assignment or subletting without
Landlord's approval, where required hereunder, shall be void and of no effect.
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Landlord shall have the right to transfer and assign, in whole or in part, any
of its rights under this lease, and in the Building and property referred to
herein; and to the extent that such assignee assumes Landlord's obligations
hereunder, Landlord shall by virtue of such assignment be released from such
obligations.
12. Fire and Casualty Damage.
a) Landlord agrees to maintain standard fire and extended coverage insurance
covering the building of which the premises are a part in an amount not less
than 80% (or such greater percentage as may be necessary to comply with the
provisions of any co-insurance clauses of the policy) of the "replacement cost"
thereof as such term is defined in the Replacement Cost Endorsement to be
attached thereto, insuring against the perils of Fire, Lightning and Extended
Coverage, such coverages and endorsements to be as defined, provided and limited
in the standard bureau forms prescribed by the insurance regulatory authority
for the State in which the premises are situated for use by insurance companies
admitted in such state for the writing of such insurance on risks located within
such state. Subject to the provisions of subparagraphs 12(c), 12(d) and 12(e)
below, such insurance shall be for the sole benefit of Landlord and under its
sole control.
b) If the buildings situated upon the premises should be damaged or destroyed by
fire, tornado or other casualty, Tenant shall give immediate written notice
thereof to Landlord.
c) If the buildings situated upon the premises should be totally destroyed by
fire, tornado or other casualty, or if they should be so damaged, thereby that
rebuilding or repairs cannot in Landlord's estimation be completed within two
hundred (200) days after the date upon which Landlord is notified by Tenant of
such damage, this lease shall terminate and the rent shall be abated during the
unexpired portion of this lease, effective upon the date of the occurrence of
such damage.
d) If the buildings situated upon the premises should be damaged by any peril
covered by the insurance to be provided by Landlord under subparagraph 12(a)
above, but only to such extent that rebuilding or repairs can in Landlord's
estimation be completed within two hundred (200) days after the date upon which
Landlord is notified by Tenant of such damage, this lease shall not terminate,
and Landlord shall at its sole cost and expense thereupon proceed with
reasonable diligence to rebuild and repair such buildings to substantially the
condition in which they existed prior to such damage, except that Landlord shall
not be required to rebuild, repair or replace any part of the partitions,
fixtures, additions and other improvements which may have been placed in, on or
about the premises by Tenant. If the premises are untenantable in whole or in
part following such damage, the rent payable hereunder during the period in
which they are untenantable shall be reduced to such extent as may be fair and
reasonable under all of the circumstances. In the event that Landlord should
fail to complete such repairs and rebuilding within two hundred (200) days after
the date upon which Landlord is notified by Tenant of such damage, Tenant may at
its option terminate this lease by delivering written notice of termination to
Landlord as Tenant's exclusive remedy, whereupon all rights and obligations
hereunder shall cease and terminate.
e) Notwithstanding anything herein to the contrary, in the event the holder of
any indebtedness secured by a mortgage or deed of trust covering the premises
requires that the insurance proceeds be applied to such indebtedness, then
Landlord shall have the right to terminate this lease by delivering written
notice of termination to Tenant within fifteen (15) days after such requirement
is made by any such holder, whereupon all rights and obligations hereunder shall
cease and terminate.
f) Each of Landlord and Tenant hereby releases the other from any loss or damage
to property caused by fire or any other perils insured through or under them by
way of subrogation or otherwise for any loss or damage to property caused by
fire or any other perils insured in policies of insurance covering such
property, even if such loss or damage shall have been caused by the fault or
negligence of the other party, or anyone for whom such party may be responsible;
provided, however, that this release shall be applicable and in force and effect
only with respect to loss or damage occurring during such times as the
releasor's policies shall contain a clause or endorsement to the effect that any
such release shall not adversely affect or impair said policies or prejudice the
right of the releasor to recover thereunder and then only to the extent of the
insurance proceeds payable under such policies. Each of the Landlord and Tenant
agrees that it will request its insurance carriers to include in its policies
such a clause or endorsement. If extra cost shall be charged therefor, each
party shall advise the other thereof and of the amount of the extra cost, and
the other party, at its election, may pay the same, but shall not be obligated
to do so.
13. Liability. Landlord shall not be liable to Tenant or Tenant's employees,
agents, patrons or visitors, or to any other person whomsoever, for any injury
to person or damage to property on or about the premises, resulting from and/or
caused in part or whole by the negligence or misconduct of Tenant, its agents,
servants or employees, or of any other person entering upon the premises, or
caused by the buildings and improvements located on the premises becoming out of
repair, or caused by leakage of gas, oil, water or steam or by electricity
emanating from the premises, or due to any cause whatsoever, and Tenant hereby
covenants and agrees that it will at all times indemnify and hold safe and
harmless the property, the Landlord (including without limitation the trustee
and beneficiaries if Landlord is a trust), Landlord's agents and employees from
any loss, liability, claims, suits, costs, expenses, including without
limitation attorney's fees and damages, both real and alleged, arising out of
any such damage or injury; except injury to persons or damage to property the
sole cause of which is the negligence of Landlord or the failure of Landlord to
repair any part of the premises which Landlord is obligated to repair and
maintaining hereunder within a reasonable time after the receipt of written
notice from Tenant of needed repairs. Tenant shall procure and maintain
throughout the term of this lease a policy or policies of insurance, at its sole
cost and expense, insuring both Landlord and Tenant against all claims, demands
or actions arising out of or in connection with: (i) the premises; (ii) the
condition of the premises; (iii) Tenant's operations in and maintenance and use
of the premises; and (iv) Tenant's liability assumed under this lease, the
limits of such policy or policies to be in the amount of not less than
$1,000,000 per occurrence in respect of injury to persons (including death), and
in the amount of not less than $500,000 per occurrence in respect of property
damage or destruction, including loss of use thereof. All such policies shall be
procured by Tenant from responsible insurance companies satisfactory to
Landlord. Certified copies of such policies, together with receipt evidencing
payment of premiums therefor, shall be delivered to Landlord prior to the
commencement date of this lease. Not less than fifteen (15) days prior to the
expiration date of any such policies certified copies of the renewals thereof
(bearing notations evidencing the payment of renewal premiums) shall be
delivered to Landlord. Such policies shall further provide that not less than
thirty (30) days written notice shall be given to Landlord before such policy
may be cancelled or changed to reduce insurance provided thereby.
14. Condemnation
a) If the whole or any substantial part of the premises should be taken for any
public or quasi-public use under governmental law, ordinance or regulation, or
by right of eminent domain, or by private purchase in lieu thereof and the
taking would prevent or materially interfere with the use of the premises for
the purpose for which they are being used, this lease shall terminate and the
rent shall be abated during the unexpired portion of this lease, effective when
the physical taking of said premises shall occur.
b) If part of the premises shall be taken for any public or quasi-public use
under any governmental law, ordinance or regulation, or by right of eminent
domain, or by private purchase in lieu thereof, and this lease is not terminated
as provided in the subparagraph above, this lease shall not terminate but the
rent payable hereunder during the unexpired portion of this lease shall be
reduced to such extent as may be fair and reasonable under all of the
circumstances.
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c) In the event of any such taking or private purchase in lieu thereof, Landlord
and Tenant shall each be entitled to receive and retain such separate awards
and/or portion of Lump Sum awards as may be allocated to their respective
interests and any condemnation proceedings.
15. Holding Over. Tenant will at the termination of this lease by lapse of time
or otherwise, yield up immediate possession to Landlord. If Landlord agrees in
writing that Tenant may hold over after the expiration or termination of this
lease, unless the parties hereto otherwise agree in writing on the terms of such
holding over, the hold over tenancy shall be subject to termination by Landlord
at any time upon not less than five (5) days advance written notice, or by
Tenant at any time upon not less than thirty (30) days advance written notice,
and all of the other terms and provisions of this lease shall be applicable
during that period, except that Tenant shall pay Landlord from time to time upon
demand, as rental for the period of any hold over, an amount equal to one and
one-half (1 1/2) the rent in effect on the termination date, computed on a daily
basis for each day of the hold over period. No holding over by Tenant, whether
with or without consent of Landlord shall operate to extend this lease except as
otherwise expressly provided. The preceding provisions of this paragraph 15
shall not be construed as Landlord's consent for Tenant to hold over.
16. Quiet Enjoyment. Landlord covenants that it now has, or will acquire before
Tenant takes possession of the premises, good title to the premises, free and
clear of all liens and encumbrances, excepting only the lien for current taxes
not yet due, such mortgage or mortgages as are permitted by the terms of this
lease, zoning ordinances and other building and fire ordinances and governmental
regulations relating to the use of such property, and easements, restrictions
and other conditions of record. In the event this lease is a sublease, then
Tenant agrees to take the premises subject to the provisions of the prior
leases. Landlord represents and warrants that it has full right and authority to
enter into this lease and that Tenant, upon paying the rental herein set forth
and performing its other covenants and agreements herein set forth, shall
peaceably and quietly have, hold and enjoy the premises for the term hereof
without hindrance or molestation from Landlord, subject to the terms and
provisions of this lease.
17. Events of Default. The following events shall be deemed to be events of
default by Tenant under this lease:
a) Tenant shall fail to pay any installment of the rent herein reserved when
due, or any payment with respect to taxes hereunder when due, or any other
payment or reimbursement to Landlord required herein when, due, and such failure
shall continue for a period of five (5) days from the date such payment was due.
b) Tenant shall become insolvent, or shall make a transfer in fraud of
creditors, or shall make an assignment for the benefit of creditors.
c) Tenant shall file a petition under any section or chapter of the National
Bankruptcy Act, as amended, or under any similar law or statute of the United
States or any State thereof; or Tenant shall be adjudged bankrupt or insolvent
in proceedings filed against Tenant thereunder.
d) A receiver or trustee shall be appointed for all or substantially all of the
assets of Tenant.
e) Tenant shall desert or vacate any substantial portion of the premises.
f) Tenant shall fail to comply with any term, provision or covenant of this
lease (other than the foregoing in this Paragraph 17), and shall not cure such
failure within twenty (20) days after written notice thereof to Tenant.
18. Remedies. Upon the occurrence of any such events of default described in
Paragraph 17 hereof, Landlord shall have the option to pursue any one or more of
the following remedies without any notice or demand whatsoever:
a) Terminate this lease, in which event Tenant shall immediately surrender the
premises to Landlord, and if Tenant falls so to do, Landlord may, without
prejudice to any other remedy which it may have for possession or arrearages in
rent, enter upon and take possession of the premises and expel or remove Tenant
and any other person who may be occupying such premises or any part thereof, by
force if necessary, without being liable for prosecution or any claim of damages
therefor; and Tenant agrees to pay to Landlord on demand the amount of all loss
and damage which Landlord may suffer by reason of such termination, whether
through inability to relet the premises on satisfactory terms or otherwise.
b) Enter upon and take possession of the premises and expel or remove Tenant and
any other person who may be occupying such premises or any part thereof, by
force if necessary, without being liable for prosecution or any claim for
damages therefor, and relet the premises and receive the rent therefor; and
Tenant agrees to pay to the Landlord on demand any deficiency that may arise by
reason of such reletting. In the event Landlord is successful in reletting the
premises at a rental in excess of that agreed to be paid by Tenant pursuant to
the terms of this lease, Landlord and Tenant each mutually agree that Tenant
shall not be entitled, under any circumstances, to such excess rental, and
Tenant does hereby specifically waive any claim to such excess rental.
c) Enter upon the premises, by force if necessary, without being liable for
prosecution or any claim for damages therefor, and do whatever Tenant is
obligated to do under the terms of this lease; and Tenant agrees to reimburse
Landlord on demand for any expenses which Landlord may incur in thus effecting
compliance with Tenant's obligations under this lease, and Tenant further agrees
that Landlord shall not be liable for any damages resulting to the Tenant from
such action, whether caused by the negligence of Landlord or otherwise.
In the event Tenant fails to pay any installment of rent or any reimbursement,
additional rental, or any other payment hereunder as and when such payment is
due, to help defray the additional cost to Landlord for processing such late
payments Tenant shall pay to Landlord on demand a late charge in an amount equal
to five percent (5%) of such installment, reimbursement, additional rental or
any other payment and the failure to pay such late charge within ten (10) days
after demand therefor shall be an event of default hereunder. The provision for
such late charge shall be in addition to all of Landlord's other rights and
remedies hereunder or at law and shall not be construed as liquidated damages or
as limiting Landlord's remedies in any manner.
Pursuit of any of the foregoing remedies shall not preclude pursuit of any of
the other remedies herein provided or any other remedies provided by law, nor
shall pursuit of any remedy herein provided constitute a forfeiture or waiver of
any rent due to Landlord hereunder or of any damages accruing to Landlord by
reason of the violation of any of the terms, provisions and covenants herein
contained. No act or thing done by the Landlord or its agents during the term
hereby granted shall be deemed a termination of this lease or an acceptance of
the surrender of the premises, and no agreement to terminate this lease or
accept a surrender of said premises shall be valid unless in writing signed by
Landlord. No waiver by Landlord of any violation or breach of any of the terms,
provisions and covenants herein contained shall be deemed or construed to
constitute a waiver of any other violation or breach of any of the terms,
provisions and covenants herein contained. Landlord's acceptance of the payment
of rental or other payments hereunder after the occurrence of an event of
default shall not be construed as a waiver of such default, unless Landlord so
notifies Tenant in writing. Forbearance by Landlord to enforce one or more of
the remedies herein provided upon an event of default shall not be deemed or
construed to constitute a waiver of such default or of Landlord's right to
enforce any such remedies with respect to such default or any subsequent
default. If, on account of any breach or default by
5
Tenant in Tenant's obligations under the terms and conditions of this lease, it
shall become necessary or appropriate for Landlord to employ or consult with an
attorney concerning or to enforce or defend any of Landlord's rights or remedies
hereunder, Tenant agrees to pay any reasonable attorney's fees so incurred.
19. Landlord's Lien. In addition to any statutory lien for rent in Landlord's
favor, Landlord shall have and Tenant hereby grants to Landlord a continuing
security interest for all rentals and other sums of money becoming due hereunder
from Tenant, upon all goods, wares, equipment, fixtures, furniture, inventory,
accounts, contract rights, chattel paper and other personal property of Tenant
situated on the premises, and such property shall not be removed therefrom
without the consent of Landlord until all arrearages in rent as well as any and
all other sums of money then due to Landlord hereunder shall first have been
paid and discharged. In the event of a default under this lease, Landlord shall
have, in addition to any other remedies provided herein or by law, all rights
and remedies under the Uniform Commercial Code, including without limitation the
right to sell the property described in this Paragraph 19 at public or private
sale upon five (5) days notice to Tenant. Tenant hereby agrees to execute such
financing statements and other instruments necessary or desirable in Landlord's
discretion to perfect the security interest hereby created. Any statutory lien
for rent is not hereby waived, the express contractual lien herein granted being
in addition and supplementary thereto.
20. Subordination. This Lease and all rights of Tenant hereunder are subject and
subordinate (i) to any mortgage or deed of trust, blanket or otherwise, which
does now or may hereafter affect the building (and which may also affect other
properties) and (ii) to any and all increases, renewals, modifications,
consolidations, replacements and extensions of any such mortgage or deed of
trust. This provision is hereby declared by Landlord and Tenant to be
self-operative and no further instruments shall be required to effect such
subordination of this Lease. Tenant shall, however, upon demand at any time or
times execute, acknowledge and deliver to Landlord any and all instruments and
certificates that may be necessary or proper to more effectively subordinate
this Lease and all rights of Tenant hereunder to any such mortgage or deed of
trust or to confirm or evidence such subordination. In the event Tenant shall
fail or neglect to execute, acknowledge and deliver any such subordination
agreement or certificate, Landlord in addition to any other remedies it may
have, may, as the agent and attorney in fact of Tenant, execute, acknowledge and
deliver the same and Tenant hereby irrevocably nominates, constitutes and
appoints Landlord Tenant's proper and legal agent and attorney in fact for such
purposes. Such power of attorney shall not terminate on disability of the
principal. Tenant covenants and agrees, in the event any proceedings are brought
for the foreclosure of any such mortgage or if the Building be sold pursuant to
any such deed of trust, to attorn to the purchaser, upon any such foreclosure
sales or trustee's sale if so requested by such purchaser and to recognize such
purchaser as the Landlord under this Lease. Tenant agrees to execute and deliver
at any time and from time to time, upon the request of Landlord or of any
holder(s) of any of the indebtedness or other obligations secured by any of the
mortgages or deeds of trust referred to in this paragraph any instruments or
certificates which, in the sole judgment of the Landlord or of such holder(s),
may be necessary or appropriate in any such foreclosure proceeding or otherwise
to evidence such attornment. Tenant hereby irrevocably appoints Landlord and the
holders of the indebtedness or other obligations secured by the aforesaid
mortgages and/or deeds of trust jointly and severally the agent and attorney in
fact of Tenant to execute and deliver for and on behalf of Tenant any such
instrument or certificate. Such power of attorney shall not terminate on
disability of the principal. Tenant further waives the provisions of any statute
or rule of law, now or hereafter in effect, which may give or purport to give
Tenant any right or election to terminate or otherwise adversely affect this
Lease and the obligation of Tenant hereunder in the event any such foreclosure
proceeding is brought or trustee's sale occurs and agrees that this Lease shall
not be affected in any way whatsoever by any such foreclosure proceeding or
trustee's sale unless the holder(s) of the indebtedness or other obligations
secured by said mortgages and/or deeds of trust shall declare otherwise.
21. Landlord's Default. In the event Landlord should become in default in any
payments due on any such mortgage described in Paragraph 20 hereof or in the
payment of taxes or any other items which might become a lien upon the premises
and which Tenant is not obligated to pay under the terms and provisions of this
lease, Tenant is authorized and empowered after giving Landlord five (5) days
prior written notice of such default and Landlord's failure to cure such
default, to pay any such items for and on behalf of Landlord, and the amount of
any item so paid by Tenant for or on behalf of Landlord, together with any
interest or penalty required to be paid in connection therewith, shall be
payable on demand by Landlord to Tenant; provided, however, that Tenant shall
not be authorized and empowered to make any payment under the terms of this
Paragraph 21 unless the item paid shall be superior to Tenant's interest
hereunder. In the event Tenant pays any mortgage debt in full, in accordance
with this paragraph, it shall, at its election, be entitled to the mortgage
security by assignment or subrogation.
22. Mechanic's Liens. Tenant shall have no authority, express or implied, to
create or place any lien or encumbrance of any kind or nature whatsoever upon,
or in any manner to bind, the interest of Landlord in the premises or to charge
the rentals payable hereunder for any claim in favor of any person dealing with
Tenant, including those who may furnish materials or perform labor for any
construction or repairs, and each such claim shall affect and each such lien
shall attach to, if at all, only the leasehold interest granted to Tenant by
this instrument. Tenant covenants and agrees that it will pay or cause to be
paid all sums legally due and payable by it on account of any labor performed or
materials furnished in connection with any work performed on the premises on
which any lien is or can be validly and legally asserted against its leasehold
interest in the premises or the improvements thereon and that it will save and
hold Landlord harmless from any and all loss, cost or expense based on or
arising out of asserted claims or liens against the leasehold estate or against
the right, title and interest of the Landlord in the premises or under the terms
of this lease.
23. Notices. Each provision of this instrument or of any applicable governmental
laws, ordinances, regulations and other requirements with reference to the
sending, mailing or delivery of any notice or the making of any payment by
Landlord to Tenant or with reference to the sending, mailing or delivery of any
notice or the making of any payment by Tenant to Landlord shall be deemed to be
complied with when and if the following steps are taken:
a) All rent and other payments required to be made by Tenant to Landlord
hereunder shall be payable to Landlord at the address hereinbelow set forth or
at such other address as Landlord may specify from time to time by written
notice delivered in accordance herewith. Tenant's obligation to pay rent and any
other amounts to Landlord under the terms of this lease shall not be deemed
satisfied until such rent and other amounts have been actually received by
Landlord.
b) All payments required to he made by Landlord to Tenant hereunder shall be
payable to Tenant at the address hereinbelow set forth, or at such other address
within the continental United States as Tenant may specify from time to time by
written notice delivered in accordance herewith.
c) Any notice or document required or permitted to be delivered hereunder shall
be deemed to be delivered whether actually received and not when deposited in
the United States Mail, postage prepaid. Certified or Registered Mail, addressed
to the parties hereto at the respective addresses set out below, or at such
other address as they have heretofore specified by written notice delivered in
accordance herewith:
Landlord: Tenant:
Connecticut General Life Insurance Company
a Connecticut Corporation TekGraf, Inc., a Texas Corporation
------------------------------------------- ----------------------------------
c/o Transwestern Property Company; 6671 6721 Portwest, Suite 100
------------------------------------------- ----------------------------------
Xxxxxxxxx Xxxxxxx #000, Xxxxxxx, XX 00000 Xxxxxxx, XX 00000
------------------------------------------- ----------------------------------
6
If and when included within the term "Landlord", as used in this instrument,
there are more than one person, firm or corporation, all shall jointly arrange
among themselves for their joint execution of such a notice specifying some
individual at some specific address for the receipt of notices and payments to
Landlord; if and when included within the term "Tenant", as used in this
instrument, there are more than one person, firm or corporation, all shall
jointly arrange among themselves for their joint execution of such a notice
specifying some individual at some specific address within the continental
United States for the receipt of notices and payments to Tenant. All parties
included within the terms "Landlord" and "Tenant", respectively, shall be bound
by notices given in accordance with the provisions of this paragraph to the same
effect as if each had received such notice.
24. Miscellaneous.
a) Words of any gender used in this lease shall be held and construed to include
any other gender, and words in the singular number shall be held to include the
plural, unless the context otherwise requires.
b) The terms, provisions and covenants and conditions contained in this lease
shall apply to, inure to the benefit of, and be binding upon, the parties hereto
and upon their respective heirs, legal representatives, successors and permitted
assigns, except as otherwise herein expressly provided, Landlord shall have the
right to assign any of its rights and obligations under this lease. Each party
agrees to furnish to the other, promptly upon demand, a corporate resolution,
proof of due authorization by partners, or other appropriate documentation
evidencing the due authorization of such party to enter into this lease.
c) The captions inserted in this lease are for convenience only and in no way
define, limit or otherwise describe the scope or intent of this lease, or any
provision hereof, or in any way affect the interpretation of this lease.
d) Tenant agrees from time to time within ten (10) days after request of
Landlord, to deliver to Landlord, or Landlord's designee, an estoppel
certificate stating that this lease is in full force and effect, the date to
which rent has been paid, the unexpired term of this lease and such other
matters pertaining to this lease as may be requested by Landlord. It is
understood and agreed that Tenant's obligation to furnish such estoppel
certificates in a timely fashion is a material inducement for Landlord's
execution of this lease.
e) This lease may not be altered, changed or amended except by an instrument in
writing signed by both parties hereto.
f) All obligations of Tenant hereunder not fully performed as of the expiration
or earlier termination of the term of this lease shall survive the expiration or
earlier termination of the term hereof, including without limitation all
payments obligations with respect to taxes and insurance and all obligations
concerning the condition of the premises. Upon the expiration or earlier
termination of the term hereof, and prior to Tenant vacating the premises,
Tenant shall pay to Landlord any amount reasonably estimated by Landlord as
necessary to put the premises, including without limitation all heating and air
conditioning systems and equipment therein, in good condition and repair. Tenant
shall also, prior to vacating the premises, pay to Landlord the amount, as
estimated by Landlord, of Tenant's obligation hereunder for real estate taxes
and insurance premiums for the year in which the lease expires or terminates.
All such amounts shall be used and held by Landlord for payment of such
obligations of Tenant hereunder, with Tenant being liable for any additional
costs therefor upon demand by Landlord, or with any excess to be returned to
Tenant after all such obligations have been determined and satisfied, as the
case may be. Any security deposit held by Landlord shall be credited against the
amount payable by Tenant under this Paragraph 24(f).
g) If any clause or provision of this lease is illegal, invalid or unenforceable
under present or future laws effective during the term of this lease, then and
in that event, it is the intention of the parties hereto that the remainder of
this lease shall net be affected thereby, and it is also the intention of the
parties to this lease that in lieu of each clause or provision of this lease
that is illegal, invalid or unenforceable, there be added as a part of this
lease contract a clause or provision as similar in terms to such illegal,
invalid or unenforceable clause or provision as may be possible and be legal,
valid and enforceable.
h) Because the premises are on the open market and are presently being shown,
this lease shall be treated as an offer with the premises being subject to prior
lease and such offer subject to withdrawal or non-acceptance by Landlord or to
other use of the premises without notice, and this lease shall not be valid or
binding unless and until accepted by Landlord in writing.
i) All references in this lease to "the date hereof" or similar references shall
be deemed to refer to the last date, in point of time, on which all parties
hereto have executed this lease.
25. Exhibits and Attachment. All exhibits, attachments, riders and addenda
referred to in this Lease are incorporated in this Lease and made a part hereof
for all intents and purposes.
Executed by Landlord, this 14th day of April, 1994.
Connecticut General Life Insurance Company
Attest/Witness a Connecticut Corporation
------------------------------------------
/s/ [ILLEGIBLE] By: /s/ [ILLEGIBLE]
------------------------------- --------------------------------------
[ILLEGIBLE]
Title: Administrative Assistant Title: Vice President
------------------------ -----------------------------------
Executed by Tenant, this day of , 19 .
Attest/Witness TekGraf, Inc., a Texas Corporation
------------------------------------------
By: /s/ [ILLEGIBLE]
------------------------------- --------------------------------------
Title: Title: President
------------------------ -----------------------------------
7
ADDENDUM ONE
TO LEASE AGREEMENT BETWEEN
CONNECTICUT GENERAL LIFE INSURANCE COMPANY, A CONNECTICUT CORPORATION
AND
TEKGRAF, INC., A TEXAS CORPORATION
1. Landlord agrees to provide, at its cost, the following building standard
improvements:
1. Repaint all interior walls.
2. Recarpet all Tenant desired high traffic interior areas, with the
total amount of new carpeting installed not to exceed 1,200 square
feet.
3. Fix or replace all interior lighting and ballasts.
4. Install a "drop in" electric range in Tenant's existing kitchen.
5. Install security bars on existing shipping doors.
6. Install disposal unit in kitchen sink.
7. Restripe the parking area immediately in front of the Tenant's
demised building and identify ten (10) reserved parking spaces
within same area.
8. Tint remaining (5) windows.
Except as provided herein, Tenant agrees to accept the premises in its "as is",
"where is" condition.
2. While this Lease is in full force and effect, provided that Tenant is not in
default of any of the terms, covenants and conditions thereof, Tenant shall have
the right or option to extend the original term of this Lease for one further
term of thirty six (36) months. Such extension or renewal of the original term
shall be on the same terms, covenants and conditions as provided for in the
original term except that the rental during the extended term shall be at the
fair market rental then in effect on equivalent properties, of equivalent size,
in equivalent areas. Notice of Tenant's intention to exercise the option must be
given to Landlord in writing at least one hundred twenty (120) days prior to the
expiration of the original term of this Lease.
3. Provided Tenant is not in default of any terms and conditions of the Lease
Agreement and subject to Tenant paying to Landlord an additional payment of
$40.00 per month for a period of eighteen (18) months commencing April 1, 1994
and ending September 30, 1995, Landlord shall warrant the existing compressors
that are a part of the heating and air-conditioning systems that serve the
premises for such eighteen (18) month period outlined in this paragraph above.
4. Hazardous Waste. The term "Substances", as used in this lease shall mean
pollutants, contaminants, toxic or hazardous wastes, or any other substances,
the use, storage, handling, disposal, transportation or removal of which is
regulated, restricted, prohibited or penalized by any "Environmental Law", which
term shall mean any federal, state or local law, ordinance or other statute of a
governmental or quasi-governmental authority relating to pollution or protection
of the environment and shall specifically include, but not be limited to, any
"hazardous substance" as that term is defined under the Comprehensive
Environmental Response, Compensation and Liability Act of 1980 and any
amendments or successors in function thereto. Tenant hereby agrees that (1) no
activity will be conducted on the premises that will produce any Substance,
except for such activities that are part of the ordinary course for Tenant's
business activities (the "Permitted Activities") provided said Permitted
Activities are conducted in accordance with all Environmental Laws and have been
approved in advance in writing by Landlord, Tenant shall be responsible for
obtaining any required permits and paying any fees and providing any testing
required by any governmental agency; (2) the premises will not be used in any
manner for the storage of any Substances except for the temporary storage of
such materials that are used in the ordinary course of Tenant's business (the
"Permitted Materials") provided such Permitted Materials are properly stored in
a manner and location meeting all Environmental Laws and approved in advance, in
writing, by Landlord; Tenant shall be responsible for obtaining any required
permits and paying any fees and providing any testing required by any
governmental agency; (3) no portion of the premises will be used as a landfill
or a dump; (4) Tenant will not install any underground tanks of any type; (5)
Tenant will not allow any surface or subsurface conditions to exist or come into
existence that constitute, or with the passage of time may constitute a public
or private nuisance; (6) Tenant will not permit any Substances to be brought
onto the premises, except for the Permitted Materials described below or upon
written permission from Landlord, and if so brought or found located thereon,
the same shall be immediately removed, with proper disposal, and all required
cleanup procedures shall be diligently undertaken pursuant to all Environmental
Laws. Prior to any substance being brought upon or into the Lease premises,
whether with Landlord's written permission or not, Tenant will provide to
Landlord any applicable material safety data sheets regarding said Substance as
well as a written description of the amount of such substance to be brought upon
or into the leased premises and the common and recognized chemical name of such
Substance. Landlord or Landlord's representative shall have the right but not
the obligation to enter the premises for the purpose of inspecting the storage,
use and disposal of Permitted Materials to ensure compliance with all
Environmental Laws. Should it be determined, in Landlord's sole opinion, that
said Permitted Materials are being improperly stored, used, or disposed of, then
Tenant shall immediately take such corrective action as requested by Landlord.
Should Tenant fail to take such corrective action within twenty-four (24) hours,
Landlord shall have the right to perform such work and Tenant shall promptly
reimburse Landlord for any and all costs associated with said work. If at any
time during or after the term of the lease, the premises is found to be so
contaminated or subject to said conditions, Tenant shall diligently institute
proper and thorough cleanup procedures at Tenant's sole cost, and Tenant agrees
to indemnify and hold Landlord harmless from all claims, demands, actions,
liabilities, costs, expenses, damages, fines, reimbursement, restitution,
response costs, cleanup costs, and obligations (including investigative
responses and attorney's fees) of any nature arising from or as a result of the
use of the premises by Tenant. The foregoing indemnification of the
responsibilities of Tenant shall survive the termination or expiration of this
Lease.
Permitted Materials: None
8
February 13, 1997
Xx. Xxxxxx Xxxxxx
Tekgraf, Inc.
0000 Xxxxxxxx, Xxxxx 000
Xxxxxxx, Xxxxx 00000
Re: First Amendment to Lease
Dear Martyn:
Whereas a Lease Agreement was made and entered into by and between Connecticut
General Life Insurance Company, a Connecticut Corporation, hereinafter referred
to as "Landlord", and Tekgraf, Inc., a Texas corporation, hereinafter referred
to as "Tenant", dated and executed April 14, 1994, referring to approximately
5,495 square feet of space at 0000 Xxxxxxxx, Xxxxx 000, Xxxxxxx, Xxxxx, it is
hereby agreed that, as of March 1, 1997, the aforementioned Lease Agreement
shall be amended as follows:
1) The lease term shall be extended for an additional twelve (12) months,
resulting in a new expiration date of February 28, 1998.
2) The monthly base rent shall be as follows:
Months 1-12 $3,750.00/month
Except as provided herein, all terms, covenants and conditions of the
aforementioned Lease Agreement shall remain in full force and effect. The last
date set forth below shall be the date of this First Amendment.
ACCEPTED AND AGREED: ACCEPTED AND AGREED:
Tenant: Landlord:
Tekgraf, Inc. Connecticut General Life Insurance Company,
a Connecticut Corporation
By: CIGNA Investments, Inc.
By:/s/ Xxxxxx Xxxxxx By: /s/ Xxxxx X. Xxxxxx
---------------- ---------------------
Xxxxx X. Xxxxxx
MANAGING DIRECTOR
Date: 2-18-97 Date: 3/10/97
-------------- ---------------------
