Exhibit 10.55
LEASE TERMINATION AGREEMENT
This LEASE TERMINATION AGREEMENT ("Agreement") is entered into on this
2nd day of August, 2002, by and between 3930 BUILDING PARTNERSHIP, a Nevada
general partnership ("Landlord"), and INTEGRATED INFORMATION SYSTEMS, a Delaware
corporation ("Tenant").
RECITALS:
A. Landlord and Tenant entered into that Lease, dated November
30, 1999, (the "Lease") for space in the Building located at 0000 Xxxxxx Xxxxxx
Xxxxxxx, Xxxxx 000, Xxx Xxxxx, Xxxxxx 00000 ("Premises").
B. Tenant and Landlord have agreed to terminate the Lease
subject to the conditions contained in this Agreement.
WHEREFORE, based upon the mutual promises contained herein and other
valuable consideration, Landlord and Tenant agree as follows:
1. Condition of Termination. As a condition precedent to the
termination of the Lease, Tenant shall pay to Landlord, in immediately available
funds, the sum of Thirty-Two Thousand Nine Hundred Five and 00/100 Dollars
($32,905.00) (the "Initial Payment"). The Initial Payment shall be paid by
Tenant on or before September 15, 2002.
2. Additional Payments. In addition to the Initial Payment, Tenant
shall pay subsequent quarterly installments to Landlord of One Thousand Six
Hundred Forty-Five and 25/100 Dollars ($1,645.25) over a period of five (5)
years, equaling an additional sum of Thirty-Two Thousand Nine Hundred Five and
00/100 Dollars ($32,905.00) (the "Remaining Balance"). The first installment of
the Remaining Balance shall be paid to Landlord concurrently with Tenant's
payment of the Initial Payment, with subsequent installments due and payable on
the first (1st) day of each and every third (3rd) month thereafter until paid in
full. In the event Tenant fails to pay any quarterly installment due hereunder
within ten (10) days from the date Landlord issues a written demand, Tenant
shall be deemed to be in default under this Agreement and the entire unpaid
portion of the Remaining Balance shall be immediately due and payable.
3. Termination of Lease. Effective as of the date of Tenant's
satisfaction of the condition precedent contained in Section 1 ("Termination
Date"), the Lease shall automatically terminate without the necessity of any
written document other than this Agreement and Landlord and Tenant shall be
released from those obligations and liabilities under the Lease arising after
the Termination Date. Tenant has no knowledge of any third party causes of
action for claims, losses, damages or liabilities for which Tenant would have
been obligated to indemnify Landlord under the Lease ("Third Party Claims").
Notwithstanding the foregoing, Tenant shall indemnify Landlord from and against
any and all Third Party Claims that have accrued or are attributable to conduct
occurring on or before January 31, 2002, so long as such Third Party Claim is
asserted no more than one (1) year from the date of this Agreement.
4. Premises. Prior to the termination of the Lease due to Tenant's
satisfaction of the condition precedent contained in Section 1, Landlord shall
be permitted to lease the Premises to another interested third party without any
reduction in the amounts to be paid by Tenant to Landlord pursuant to Section 2.
Tenant waives its right to the Premises and consents to the leasing of the
Premises to another party and agrees to execute appropriate documentation, upon
request, within ten (10) days of such request, acknowledging and confirming
such waiver. Tenant and Landlord agree that Landlord's efforts to lease the
Premises are for the purposes of mitigating the damages suffered by Landlord due
to Tenant's failure to occupy the Premises pursuant to the Lease.
5. Dismissal of Cause of Action. Upon Tenant's payment of the Initial
Payment, Landlord will dismiss without prejudice the action on file and
currently pending in the Eighth Judicial District Court of the State of Nevada
in and for the County of Xxxxx, entitled "3930 Building Partnership v.
Integrated Information Systems", Case No. A449435 (the "Case"). In the event
Tenant fails to pay when due any of the amounts to be paid by Tenant under
Section 2, Landlord shall re-open the Case and continue the action against
Tenant for the remaining amounts due under the Lease.
6. Entire Agreement; Amendments. This Agreement, together with the
Lease, is intended by the parties to be the final expression of their agreement
with respect to the subject matter hereof, and is intended as the complete and
exclusive statement of the terms of the understanding between the parties. As
such, this Agreement supersedes any and all prior understandings between the
parties, whether oral or written. Any amendments to this Agreement shall be in
writing and shall be signed by both parties hereto.
7. Attorney's Fees. In the event Tenant defaults in the performance
of any of the terms of this Agreement and Landlord employs an attorney in
connection therewith, Tenant agrees to pay Landlord's reasonable attorney's
fees and costs.
LANDLORD: TENANT:
3930 BUILDING PARTNERSHIP INTEGRATED INFORMATION SYSTEMS
a Nevada general partnership a Delaware corporation
By its general partner: By: /s/ Xxxxxxx X. Xxxxx
XXXXXX XXXXXX PROPERTIES,
LIMITED PARTNERSHIP, Print Name: Xxxxxxx X. Xxxxx
a Delaware limited partnership
Print Title: Executive Vice President, Chief
Financial Officer and Treasurer
By its sole general partner:
THE XXXXXX XXXXXX CORPORATION
a Delaware corporation
By: /s/ X. X. Xxxx
Print Name: X.X. Xxxx
Print Title: Sr. VP