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EXHIBIT 10.19
TENANCY AGREEMENT
[ref. heh het - shin kaf B-6]
Drafted and signed in Jerusalem on 13 December 1999
Between: HAR HOTZVIM PROPERTIES LTD. (51-168405-2)
27 Hamered St., Tel Aviv
(hereinafter "the lessor")
And: BRT BIOPHARMACEUTICALS LTD. (51-285095-9)
216 Jaffa Road, 94383 Jerusalem
(hereinafter "THE LESSEE")
Whereas The lessor is the owner of rights in land known as parcel 110 in
block 30241, on Qiryat Hamada Street, Har Hotzvim, Jerusalem;
And whereas An existing building is located on this land and other buildings
are in the process of planning or construction and development;
And whereas The lessee is interested in leasing from the lessor a unit located
in Building B on the land, all as stipulated in this agreement;
And whereas The lessor agrees to lease to the lessee a unit in Building B on
the property, as stipulated in this Agreement;
And whereas The parties have agreed on the principles for adapting the leased
property to the requirements of the lessee and have agreed on all
other conditions of the transaction;
NOW THEREFORE BE IT AGREED, STIPULATED, AND DECLARED AS FOLLOWS:
1. INTRODUCTION
1.1 The preamble to this agreement is an integral part thereof.
1.2 DEFINITIONS
In this agreement, the following terms shall be interpreted as
indicated:
1.2.1 "THE PROPERTY" - Parcel 110 in block 3241, on Qiryat
Hamada Street, Har Hotzvim, Jerusalem, including
everything built thereon and everything that may be
built and developed thereon. The boundaries of the
property are indicated on the sketch attached to this
agreement as an integral part thereof, and marked
"Appendix A-1."
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1.2.2 "THE PROJECT" - The Ramot Meir project, under
construction on the property, which includes and will
include multipurpose structures, car parks, and open
areas.
The Project is intended to comprise three main
buildings and a tower (Building A, Building B,
Building C, and Building D). The term "project"
includes of these buildings and all other structures,
facilities, areas, lawns, paths, and everything
located on the property.
The project will be erected in stages at the
discretion of the lessor.
1.2.3 "BUILDING A" - An exiting structure in the Project
whose boundaries are marked in the sketch in Appendix
A-1, which consists of several stories.
"BUILDING B" - A building currently being planned and
erected, whose boundaries are marked in the sketch in
Appendix A-1, and which will include a multistory
parking garage and multipurpose floors.
"BUILDING C" - A building currently being planned,
whose boundaries are marked in the sketch in Appendix
A-1, and which will include a multistory parking
garage and multipurpose floors.
"BUILDING D" - a building currently being planned,
intended as a tower to be erected, if approval is
forthcoming, above a portion of Building C.
1.2.4 "THE LEASED PREMISES" - An area on the third-floor
(level 722) of Building B. The boundaries of the
leased premises are marked in blue on the sketch
attached to this agreement as an integral part
thereof and designated APPENDIX A-2. For the purposes
of this agreement the leased premises are considered
to cover 400 square meters gross. The leased premises
are designated as Unit B/3/101 in the Project. It is
stipulated that the leased premises include an area
of approximately 283 square meters intended for the
offices of the lessee, marked on the sketch with the
word "offices," and an area of approximately 117
square meters intended for the laboratories of the
lessee, marked on the sketch with a work
"laboratories." The border between the office area
and the laboratory area is marked in red on the
sketch in APPENDIX A-2. For the purposes of this
agreement the total area of the leased premises is
approximately 400 square meters gross, as stated
above. It is stipulated that the office area will
include all the work, systems, and utility supplies
in accordance with Appendix B to this agreement
(Technical Specification) that are included in the
term "the leased premises," whereas the laboratory
area will be handed over to the lessee by the lessor
as a shell only and all interior, finishing, and
infrastructure work for the laboratory area for the
needs of the lessee will be done by the latter, at
the sole expense and responsibility of the lessee.
1.2.5 "MONTH" - A month according to the Gregorian
calendar, beginning on the first day of that month
and concluding on the least day of that month, in
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accordance with the number of days in that month in
that year according to the Gregorian calendar.
1.2.6 "MANAGEMENT COMPANY" - A firm designated by the
lessor to provide management and maintenance services
for the project, whether this company is that of the
lessor or any other company selected by the lessor.
1.3 The appendices to this agreement are an integral part thereof.
The appendices are as follows:
Appendix A-1: Sketch of the property
Appendix A-2: Sketch of the leased premises
Appendix B: Technical specification and work to be performed by
the lessor in the offices of the lessee
Appendix C: Interior work in the laboratory area of the leased
premises to be implemented by the lessee (to be
added at a later date)
Appendix D: Sample promissory note
Appendix E: Insurance appendix (with two subsidiary appendices)
Appendix F: Sample bank guarantee
1.4 The headings of the sections and provisions of this agreement
and its appendices have been inserted to facilitate the
reading of the agreement and its appendices. They are not part
of the agreement and the agreement shall not be interpreted
according to them.
2. UNDERTAKING TO LEASE
The lessee hereby undertakes to lease the leased premises from the
lessor and the lessor hereby undertakes to lease the leased premises to
the lessee, all in accordance with all conditions and provisions of
this agreement.
In addition, the lessee hereby undertakes to conclude a management
contract with the management company designated in this agreement and
to comply with all provisions and conditions of the management contract
as part of this obligations vis-a-vis the lessor according to this
agreement.
3. TERM OF THE LEASE
3.1 The term of the tenancy of the leased premises is hereby set
at 8 years, beginning on 1 March 2000 (hereinafter "the
starting day of the lease") and concluding on 29 February 2008
(this period shall be designated in this agreement "the term
of the lease").
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The lessee reserves the right to shorten the term of the lease
in accordance with and subject to the provisions and
conditions of section 24 below.
3.2 It is hereby agreed and stipulated that the starting day of
the lease may be postponed by the lessor, and this in the case
stipulated in section 23 below, as well as in the case that
the lessor finds that the work on the project and/or the
building in which the leased premises are located do not
permit the start of tenancy.
Should the lessor give notice of a postponement of the
starting day of the lease, then the term of the lease shall
begin on the new date stated by the lessor and shall last for
8 years, starting on the new date set by the lessor as the
"starting day of the lease." In such case, all dates
stipulated in this agreement shall be modified
correspondingly.
4. CONVEYANCE OF THE LEASED PREMISES
4.1 The lessee undertakes to take possession of the leased
premises on the starting day of the lease.
4.2 Until the date of the handover of possession of the leased
premises to the lessee, the lessor shall complete the work in
the office area of the leased premises, all in accordance with
the Technical Specification attached to this agreement as an
integral part thereof, and designated APPENDIX B.
By way of sound practice, it is hereby clarified that both the
lessor and other lessees in the building and the project are
entitled, even after the conveyance of possession of the
leased premises to the lessee, to continue to carry out
construction and finishing work in the project (and in every
part thereof), in the building in which the leased premises
are located as well as in other leased areas of this building.
The lessor shall make every effort to ensure that work as
stated in the preceding paragraph will be conducted with
minimal disturbance to the lessee.
4.3 The lessee confirms that it has seen and carefully examined
the plans for the leased premises and the technical
specification and that subject to their implementation the
leased premises are fully satisfactory to it.
4.4 In everything that has to do with the interior work in the
laboratory area of the leased premises that will be performed
by the lessee, there shall apply the provisions of section 14
below and the provisions of the document concerning "interior
work by the lessee," attached to this agreement as part
thereof and designated APPENDIX C.
4.5 The lessor undertakes to perform the interior work in the
office area of the leased premises, enumerated in the
technical specifications (Appendix B to the agreement) within
80 days after the lessee conveys to the lessor the lessee"
final plans for the internal division of the leased premises.
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The lessee undertakes to convey to the lessor, by20 December
1999, the lessee's plans in their final form and adapted to
the internal division of the office area in the leased
premises. Should the delivery of the lessee's plans to the
lessor be delayed until after the aforesaid date the transfer
of the leased premises will be postponed correspondingly and
similarly all the dated enumerated in this agreement will be
delayed correspondingly, but in any case the starting date of
the lease shall not fall after 1 April 2000.
4.6 Should the lessor delay the date of the transfer of possession
of the leased premises beyond the lapse of 80 days from the
date of delivery of the lessee's plans, in their final and
appropriate form, the lessor shall pay the lessee as agreed
and prepossessed damages a sum equal to the monthly rental for
the period during which the conveyance of possession of the
leased premises was delayed, prorated, and shall also
reimburse the lessee for the rent paid to it at the time of
the signing of this agreement for that same period, pro rata.
5. RENT
5.1 The monthly rent for each month during the term of the lease
between 1 March 2000 and 29 February 2004 is hereby set at the
amount of NIS 20,778 (twenty-thousand seven hundred
seventy-eight New Israeli Sheqels), plus indexation
differentials (hereinafter "the monthly rent").
The amount of the monthly rent for each month of the term of
the lease from 1 March 2004 until 29 February 2008 is hereby
set at the amount of NIS 22,855 (twenty-two thousand eight
hundred fifty-five New Israel Sheqels), plus indexation
differentials (hereinafter "the monthly rent").
5.2 In addition to the monthly rent the lessee shall add and pay
to the lessor Value Added Tax at the legal rate at the time of
payment. The rent shall not be reduced below the amounts
stipulated in section 5.1 above.
5.3 The monthly rent as stipulated above shall be linked to the
index and shall be paid with the addition of indexation
differentials, using the following indexation base:
5.3.1 It is agreed that the "determining index" according
to which the monthly rental payments will be
calculated is the index published on November 15,
1999 (106.8 points).
5.3.2 It is agreed that the "known index" is the last known
index on the day on which the monthly rent payment is
actually made.
5.3.3 "The index" means the index known as the "Consumer
Price Index" (including fruits and vegetables),
published by the Central Bureau of Statistics and
Economic Research. Should the publication of this
index be discontinued, it shall be replaced by
whatever index is stipulated by the Central Bureau of
Statistics as the index that replaces it; if none is
so designated, it shall be replaced by the index
accepted by the Bank of Israel as the index that
replaces
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it, whether or not said indices are based on the same
data as the aforementioned index.
6. PAYMENT OF RENT
6.1 The lessee undertakes to pay the lessor monthly rent as
follows:
6.1.1 Monthly rental payments for the entire term of the
lease, plus Value Added Tax, shall be paid by the
lessee to the lessor in quarterly payments (each in
the amount of the monthly rent for three months, plus
indexation differentials plus Value Added Tax), paid
for every three-month period in advance, no later
than the first day of the first month in each
quarter.
The rental payments in accordance with this
subsection shall be paid in every year that the lease
is in effect on the first day of each of the
following months: April, July, October, January.
6.1.2 It is agreed that, notwithstanding the provisions of
section 5.1 and section 6.1.1 above, the lessee shall
pay the lessor by check, on the day of the signing of
this agreement, the sum of NIS 139,253 (one hundred
thirty-nine thousand two hundred fifty-three New
Israel Sheqels), plus Value Added Tax, on account of
the monthly rent and on account of the monthly
parking fees for four parking spaces as stated in
section 26 below, for the period running from1 March
2000 through 30 September 2000.
It is agreed that all other monthly rental payments,
starting with the period that begins on 1 October
2000, shall be paid in the amounts and on the dates
stipulated in section 6.1.1 above. The last rental
payment shall relate to the period between the first
day of the month of January of the last year of the
lease and the 29th day of the month of February of
the last year of the lease.
6.1.3 The monthly rental payments shall be made with in
addition of indexation linkage differentials computed
according to the ratio between the base index and the
known index.
6.1.4 The lessee shall not be entitled to prepay the
monthly rent except with the prior written consent of
the lessor, if given.
6.2 At the time of the signing of this agreement the lessee
delivers to the lessor 14 index-linked promissory notes
phrased as stipulated in APPENDIX D to this agreement. The
amounts of the promissory notes and their dates of maturity
shall correspond to the sums and dates stipulated in sections
5.1 and 6.1.1 above (for the period beginning on 1 March 2000
and concluding on 29 February 2004). Except for the first
payment, which relates to the period from 1 March 2000 through
30 September 2000, which is paid by check as stated, and
except for the last promissory note, which relates to the
period from 1 January of the last year of the lease through 29
February of the last year of the lease, as stated, the amount
of each promissory note shall be the sum of the monthly rent
and the monthly parking fees for four parking spaces, as
stated, for three months, plus Value Added Tax (base index:
106.8 points).
The lessee undertakes to present to the lessor, on the dates
stipulated in section 24 below, 16 indexed promissory notes
phrased as stipulated in APPENDIX D to this
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agreement. The amounts of the promissory notes and their dates
of maturity shall correspond to the sums and dates stipulated
in sections 5.1 and 6.1.1 above (for the period beginning on 1
March 2004 and concluding on 29 February 2008). The amount of
each promissory note shall be the sum of the monthly rent for
three months, plus Value Added Tax (base index: 106.8 points).
6.3 The aforementioned promissory notes will be payable to the
order of the lessor, with the right of endorsement to the
lessor's bank for collection only. The promissory notes shall
be signed by the lessee.
The aforesaid promissory notes shall be given to guarantee
payment of the rent and to facilitate collection thereof.
Only the actual and timely redemption of each promissory note
shall be considered to constitute appropriate payment of the
rent covered by that note.
6.4 The lessee hereby conveys to the lessor a certified copy of an
irrevocable order given to Bank Leumi Le-Israel, Ltd., Mahane
Yehuda Branch (No. 913) to pay the aforesaid promissory notes
from the lessee's account with this bank (account number
121600/19) and undertakes to cause the promissory notes to be
honored by this bank in timely and complete fashion.
6.5 Each of the above subsidiary provisions of the present section
6 constitutes a principal condition of this agreement, the
violation of which constitutes a fundamental breach of the
agreement to which are applicable also the provisions of
section 18 below.
6.6 By way of sound practice it is hereby stated that each of the
promissory notes in accordance with section 6.2 above is
deemed to be a note with a face value in the amount written
(in words and in digits) on the note, plus an amount whose
rate is the same as the rate of the Value Added Tax stipulated
by law on the date set for payment of the note. The amount of
Value Added Tax shall be computed also with regard to
indexation differentials. The lessee undertakes to pay the
amount of the note (plus indexation differentials), including
Value Added Tax as stated, on the date set for payment.
Computation of the Value Added Tax shall be based on the rate
of Value Added Tax that applies to rental transactions (should
there be a distinction among different types of transactions).
The lessee undertakes not to claim that the note is
conditional or not for the face amount.
7. OBJECTIVE OF THE TENANCY
7.1 The lessee is leasing the leased premises and every part
thereof for the purpose of offices and laboratories for
research and development in the field of medicine and
para-medicine only, and undertakes to conduct on the leased
premises a use for this objective throughout the term of the
lease.
7.2 The lessee alone and at its expense is responsible for
obtaining business permits for the use of the leased premises.
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7.3 The lessee affirms that it is considering submitting a request
to receive the status of "approved enterprise" and/or to
conduct "an approved project" (in the sense of these terms in
the Encouragement of Capital Investment Laws), and this within
18 months of the starting date of the lease in accordance with
this agreement. The lessee affirms that to the best of its
knowledge it meets the criteria stipulated and required to
receive the status of approved enterprise and/or to conduct an
approved project as stated.
7.4 The provision of section 7.1 is a principal condition of this
agreement, the violation of which constitutes a fundamental
breach of the agreement to which are applicable also the
provisions of section 18 below.
8. IDENTITY OF THE USERS OF THE LEASED PREMISES
8.1 The leased premises are leased to the lessee alone; the lessee
may not transfer the leased premises or any part thereof to
another party, nor may the lessee grant any right whatsoever
in the leased premises or in any part thereof to other parties
without the prior written consent of the lessor, when the
alternative lessee is to the full satisfaction of the lessor.
Notwithstanding what is stated above, the lessor may reject a
subtenant or substitute lessee for reasonable cause only. It
is made clear that the purpose of the tenancy of the
substitute lessee shall not be limited to the objective of the
lease in accordance with section 7.1 above. It is made clear
that the rejection of a proposed substitute lessee by the
lessor because of the objective of the tenancy of the proposed
substitute lessee is inappropriate to the nature of the entire
project is reasonable. If the lessor has approved a subtenant
as stated, the lessee shall continue to bear responsibility
for all its undertakings in accordance with this agreement.
8.2 Given that the lessee is a limited liability corporation, it
is agreed that any change in the control of the company shall
be considered to be a transfer of rights that is not allowed
under section 8.1 of above (and accordingly requires the
consent of the lessor in the conditions stated above); the
lessor shall not reject a request by the lessee other than for
reasonable cause. Should the lessor reject a request by the
lessee for other than reasonable cause, the lessee shall be
entitled to shorten the term of the lease in accordance with
the provisions and conditions of this agreement, subject to
finding a substitute lessee to the full and exclusive
satisfaction of the lessor. The lessee declares that the
stockholders as of the date of the signing of this agreement
are Lakaro Biopharmaceuticals Inc. (99%) and Morris Last (1%),
and that the lessee company is controlled by these alone.
8.3 Each of the provisions of section 8 is a principal condition
of this agreement, the violation of which constitutes a
fundamental breach of the agreement to which are applicable
also the provisions of section 18 below.
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9. TAXES AND OTHER COMPULSORY PAYMENTS ON ACCOUNT OF THE LEASED PREMISES
The parties agree that all taxes, levies, fees, and other compulsory
payments that may be imposed with relation to the leased premises and
any part thereof and that are incumbent upon the party in possession of
the property shall all and with no exception devolve on the lessee.
Without detracting from the generality of the aforesaid and from other
sections of this agreement, it is hereby made plain that the lessee
shall pay the municipal rates due on account of the leased premises.
Property tax and other taxes imposed exclusively upon the owner of the
property and on the owner alone, including sewage, road construction,
drainage, and similar levies or fees, shall be paid by the lessor.
10. EXPENDITURES FOR USE AND MAINTENANCE OF THE LEASED PREMISES AND
RESPONSIBILITY FOR DAMAGES
10.1 The expenditures and payments required for use of the leased
premises and as a result of the use of the leased premises, of
any type whatsoever, including electricity, water, telephone,
telecommunications, heating, air-conditioning, and gas, shall
devolve exclusively on the lessee.
10.2 Should no water meter be installed in the leased premises, in
accordance with a decision of the lessor, payments for water
usage shall be made by the lessee to the lessor (plus Value
Added Tax) directly or through the management company. The
lessee's share of the outlay for water usage shall be computed
by the lessor according to the relative share of the leased
premises in the building in which the leased premises are
located. The payment for water shall be made within two weeks
of the day on which the lessor submits a bill for this to the
lessee.
Should the water usage of the building in which the leased
premise are located be marginal or negligible, the lessor
shall be entitled to determine that the total water usage of
the building will be included as part of the "actual
expenditures' of the management company on account of which
the lessee pays it "contributory share" in the "expenditures
of the company," as stipulated in the management agreement.
10.3 The lessee alone is responsible for maintaining the leased
premises and its systems in working order and for repairing
any damage or malfunction that may be caused or that may arise
in the leased premises during the term of the lease. The
lessee shall not bear responsibility for repairing any damage
or malfunction that occurs beyond the outside walls of the
leased premises or in the structure of the concrete ceiling of
the leased premises or in the building systems outside the
leased premises that are not systems of the leased premises,
except for damage or malfunction that results from an act of
commission or omission on the part of the lessee. The lessee
shall bear responsibility for all damage to windows of the
leased premises. The lessor shall bear responsibility for
repairing any damage or malfunction that results from faulty
construction and/or the use of defective building materials,
unless these damages
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result from an act of commission or omission on the part of
the lessee, in which case the lessee shall bear responsibility
for these damages.
10.4 The lessee alone and at its expense shall be responsible for
any damage that may be caused to the leased premises, to
property, and to any human being therein.
In addition to the aforesaid, it is agreed that the lessee
shall bear responsibility for damages of any type whatsoever
that may be caused to the lessor and/or to the management
company and/or to any third party whatsoever by a negligent
and malicious act of commission or omission on the part of the
lessee, including, and without detracting from the stated
generality, any damage to the body or property of any person
who may be found at any time whatsoever in the area of the
project. The lessee hereby releases the lessor and/or the
management company from any liability under law with relation
to any such damage and undertakes to compensate or indemnify
them in any amount of damage that may be caused to the lessor
and/or to the management company and on account any amount
that the lessor and/or the management company may be required
to pay in relation to any damage and outlay and/or loss and/or
fine that may be caused as stated. The compensation and
indemnification shall include any legal expenses that the
lessor and/or the management company may incur in connection
with the aforesaid and shall be paid to the lessor and/or to
the management company immediately upon the first request,
provided that the lessee has been given a reasonable
opportunity to defend itself against any claim that may be
submitted in this regard.
It is hereby stated and agreed that the lessee and all those
acting on its behalf explicitly waive any right of action
against the lessor and/or against the management company and
all those acting on their behalf as well as against other
tenants of the project whose tenancy and/or management
agreements include a parallel section concerning a waiver of
the right to lodge an action against the lessee on account of
damage for which it is entitled to indemnification under the
insurance policies that it undertook to take out in the
management contract, in the tenancy agreement, or in any
appendix that is a part thereof. The waiver of the right lodge
an action shall apply also to damage for which the tenant is
not entitled to indemnification because of a deductible clause
in the insurance policy. The waiver of the entitlement to
indemnification shall not apply vis-a-vis a party that has
caused damage with malicious intent.
11. INSURANCE
The lessee undertakes to carry insurance as specified in APPENDIX E to
the agreement and undertakes to fulfill each of the obligations imposed
on the lessee in APPENDIX E to the agreement.
Each of the lessee's obligations under the present section 11 and
Appendix E to the agreement (and its subsidiary appendices) is a
principal condition of this agreement, the violation of which
constitutes a fundamental breach of the agreement to which are
applicable also the provisions of section 18 below.
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12. NONAPPLICATION OF TENANT PROTECTION
The lessee declares that it is aware of and agrees to the following:
12.1 The lessee is not and shall not be a protected tenant under
the Tenant Protection Law (consolidated version) 5732-1972.
12.2 The tenancy is an unprotected tenancy. Neither it nor the
parties to the agreement are subject to the aforesaid Tenant
Protection Law or to any other law or judgment that relates to
the protection of tenants or control of rent and that may
replace or supplement the aforesaid law.
12.3 The lessee has not paid and it is agreed that it shall not
make any payment nor grant to the lessor any right whatsoever
that may be deemed to be key money. It is agreed that any
payment, consideration, right, or benefit that the lessor may
derive from the lease, the leased premises, and the lessee
shall also be deemed to be part of the rent in every respect,
and this in addition to the rent stipulated in this agreement.
12.4 The lessee declares that it is aware that the leased premises
are part of a structure erected after 1 April 1954 (in
practice after 20 August 1968) and leased for the first time
after 31 March 1955 (and in practice after 20 August 1968) and
that the leased premises are free of any tenant on the date of
the signing of this agreement.
12.5 The lessee declares that the leased premises are free of any
lessee and of any person with the rights to occupy it (except
for the lessor).
12.6 At the time of the vacation of the leased premises by the
lessor, the lessor shall not be entitled to any payment of
right of any kind whatsoever from the lessor and/or from any
substitute tenant or from any other party, including on
account of improvements or repairs to the leased premises.
13. PLANNING AND CONSTRUCTION OF THE PROJECT
13.1 The lessee confirms that it is aware that the programming,
planning, infrastructure development, and construction work on
the project (each and all of the above, hereinafter "the
construction of the project") have not yet been completed,
except for the existing building (Building A), to which
modifications and additions will also be made. The
construction of the project (and every part thereof) includes,
in part, the erection of buildings, development and finishing
work, as well as interior work in some of the completed
structures. The work will be performed in stages and in
accordance with schedules, with no time limit and on the basis
of existing plans or plans that may be drafted in the future
or plans that may be modified in the future, all at the
discretion of the lessor.
13.2 It is agreed that the lessee shall submit no claims or actions
against the lessor and against any third party whatsoever on
account of any disturbance or damage that may be caused to it,
if such is caused, on account of construction of the project
(and any portion thereof) or on account of the completion
thereof. It is further agreed that the
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lessee shall not take any action or institute any proceeding
that may constitute any infringement whatsoever of the
lessor's freedom to plan the project or hinder construction
works on the project by or on behalf of the lessor, or any
part thereof.
14. INTERIOR WORK IN THE LEASED PREMISES BY THE LESSEE
14.1 It is agreed that the lessee will obtain possession of the
leased premises in the engineering condition as is and in
which or in relation to which are included all of the
installations and components enumerated in Appendix B to the
agreement (Technical Specifications).
14.2 It is agreed that except for what is incumbent upon lessor in
accordance with Appendix B to the agreement with regard to the
office area of the leased premises and this area alone, all
work to adapt the leased premises, including the laboratory
area in the leased premises, to the purpose of the tenancy and
the use of the lessee, including any construction, insulation,
and assembly whatsoever in the leased premises, including
various systems and utility supplies (each of these
hereinafter "interior work"), shall be performed by the lessee
alone, at its responsibility and expense.
No work or utility supply in the leased premises or to the
leased premises, except for those enumerated in Appendix B to
the agreement (Technical Specifications) is or shall be
incumbent upon the lessor.
14.3 It is hereby agreed that the lessee may not perform any
interior work on the leased premises except in accordance with
and subject to the provisions of Appendix C to the agreement,
which is an integral part thereof. It is the responsibility of
the lessee to receive any permit or license required bylaw for
the performance of interior work.
The lessee shall begin the interior work in the laboratory
area of the leased premises no later than 1 March 2002, on
condition that the lessee's plans (including plans for
systems) have been approved in advance and in writing by the
lessor. The lessee undertakes to complete the interior work in
the laboratory area of the leased premises within three months
of the start of the aforesaid work.
The lessor shall not refrain from approving the lessee's plans
for interior work in the laboratory area of the leased
premises other than on engineering grounds and/or reasonable
cause.
14.4 After the completion of the interior work in the laboratory
area of the leased premises by the lessee, the lessee shall be
forbidden to make any modification to the entire leased
premises and its systems; nor shall it be allowed to make any
addition to the leased premises (including any fixed
installation or system) except with the prior written consent
of the lessor, which will be weighed by the lessor at its
exclusive discretion.
14.5 In order to avoid any misunderstandings it is hereby stated
that if water is supplied to the leased premises directly from
the local authority, the lessee shall sign a contract
<PAGE>
with the Jerusalem municipality for the supply of water to the
leased premises by 1 March 2000 and see to it that a water meter is
installed for the leased premises by this date, at its own expense.
It is further agreed that the lessee shall sign a contract with the
Electric Company for the supply of electricity by the starting day
of the lease and see to it that an electric meter is installed for
the leased premises by this date, at its own expense.
14.6 In no case whatsoever may the lessee carry out any work or
installation or use or modification that may require a quantity of
electricity or air-conditioning that exceeds the quantities and
scope stated in Appendix B (Technical Specifications).
14.7 Each of the provisions of the present section 14 is a principal
condition of this agreement, the violation of which constitutes a
fundamental breach of the agreement to which are applicable also the
provisions of section 18 below.
15. RETURN OF THE LEASED PREMISES TO THE LESSOR
15.1 At the conclusion of the term of the lease and at any date prior to
then, should be tenancy end or expire before the end of the term,
the lessee shall be obligated to return the leased premises to the
lessor free of every human being and object, with the leased
premises in the condition stipulated in section 15.2 below.
15.2 The lessee undertakes to return the leased premises to the lessor
with the leased premises in a sound and fit condition as received,
except for reasonable wear, in addition to all the interior work,
including all improvements, renovations, work, additions,
modifications, and systems that may be carried out or erected in the
leased premises, whether by the lessor or by the lessee.
If the lessor does not ask the lessee to remove all work, additions,
installations, or systems whatsoever (including in accordance with
Appendix C to the agreement), all of these shall belong to the
lessor, and the lessee shall not be entitled to any payment,
indemnification, or consideration for them from the lessor.
15.3 Shortly before the end of the lease the lessor shall draw up a list
of the work, defects, and repairs (each of these, hereinafter "the
repairs") that the lessee shall carry out before returning the
leased premises to the lessor.
15.4 The list according to section 15.3 shall also include the prices of
the cost of the repairs; in the event that the lessee does not carry
out the repairs by the end of the term of the lease lessor shall be
entitled to perform them in its stead and the lessee shall be
obligated to pay the lessor by the end of the lease the value of the
cost of the repairs even if they have not yet been carried out or
will not be carried out by the lessor. Nothing stated here is
intended to detract from the right of the lessor vis-a-vis the
lessee to receive compensation or any remedy on account of the
nonperformance of the repairs in timely fashion by the lessee in
accordance with provisions of this agreement (including compensation
for a delay in leasing the premises to other parties).
<PAGE>
Should the lessee disagree as to the need to carry out repairs
and/or about the prices set with regard to the cost of the repairs,
the disagreement shall be resolved, no later than two weeks before
the end of the term of the lease, by an engineer agreed upon by the
two parties. Should the parties fail to reach agreement concerning
the identity of the engineer, then the identity of this engineer
shall be determined by the secretary (or chair) of the Jerusalem
district of the AAAI association (after request of either party), on
condition that his or her appointment and decision be rendered
within two weeks from the day that the lessee announces its
disagreement with the prices.
15.5 No later than two weeks before the end of the term of the lease the
lessee shall deliver to the lessor certification by the
municipality, the electric company, and Bezeq that the lessee has
made all payments incumbent upon it for the period until the end of
the lease, including those for water, electricity, municipal rates,
and telecommunications.
15.6 Each of the provisions of the present section 15 is a principal
condition of this agreement, the violation of which constitutes a
fundamental breach of the agreement to which are applicable also the
provisions of section 18 below.
16. MAINTENANCE OF THE BUILDING AND OF SERVICES AND FACILITIES IN THE BUILDING
THAT SERVE THE LEASED PREMISES AND THOSE VISITING THE LESSEE
16.1 The lessor undertakes to install a management company whose function
will be to manage and operate the project and also to maintain the
project, its access routes (including paved surfaces, open space,
and plazas that are within the area of the project) and the
passageway and stairways within it, the project systems, and the
outside portions of each building in the project.
16.2 The lessor undertakes to install a management company whose function
will be to operate the systems and facilities that service the
project and to see to the cleanliness of the project.
16.3 The services of the management company shall relate only to those
portions of the project that have been completed.
16.4 The lessor makes known that it has designated Park Meir Management
Company, Ltd., as the management company; this shall be the
management company as long as the lessor has not stipulated
otherwise.
16.5 The lessee undertakes to sign a contract with the management company
at the time of the signing of this agreement. A breach of contract
with the management company shall be deemed to be a breach of this
agreement. In addition, the failure of the lessee to conclude the
stated contract with the management company shall be considered to
be a breach of a principal condition of this agreement.
16.6 The management company shall take out various insurance policies as
enumerated in the management contract. It shall also be entitled to
add or subtract various policies.
<PAGE>
However, nothing in the maintenance of these policies by the
management company shall detract from the liability of the lessee or
detract from the insurance obligations of the lessee.
16.7 The lessee undertakes to make payments to the management company
starting with the period that begins on 1 March 2000 and until the
end of the term of the lease and the return of possession of the
leased premises to the lessor in accordance with the provisions of
this agreement.
16.8 It is agreed that notwithstanding what is stated in the management
contract, with regard to the period that begins on 1 March 2000 and
concludes on 31 December 2000, the lessee's payments to the
management company for its monthly contributory share shall be in
the amount of NIS 12.70 for each square meter of the leased premises
(that is, the sum of NIS 5080 for the entire leased premises), plus
Value Added Tax, with this sum linked to the index (base index:
106.8 points, published on 15 November 1999). These payments by the
lessee to the management company shall be made every three months in
advance, starting on 1 July 1999 and concluding on 31 December 2000.
The first payment shall be made on 1 March 2000 for the period
between 1 March 2000 and 30 June 2000. As of 1 January 2001 the
monthly contributory share and terms of payment shall be as detailed
and stipulated in the contract with the management company.
17. DELINQUENCY IN PAYMENT
Without detracting from any right that the lessor may have in accordance
with this agreement and any legal provision on account of breach of the
agreement, it is agreed that any case in which the lessee is delinquent in
payment of any sum that it owes the lessor under this agreement, the
lessee shall pay to the lessor that amount, linked to the index, as
stipulated in this agreement (and if there is no base index with regard to
the sum, the "base index" for this amount shall be the known index on the
day when the lessee was supposed to have paid the amount), plus arrears
interest at a rate that is twice the interest rate (including fees and
expenses) charged by Bank Hapoalim, Ltd., (main Tel Aviv branch) on
authorized overdraft (hahad) accounts for nonpreferred customers, with
this arrears interest being computed by the method and manner whereby Bank
Hapoalim, Ltd., computes during the period of delinquency (including
compound interest).
18. DAMAGES, REFUNDS, AND REMEDIES
18.1 It is agreed that the payments and amounts owed by the lessee and
the dates for their payment, as well as the provision of full and
timely guarantees, are a principal condition of this agreement. This
provision is in addition to any other provision in this agreement
and its appendices in which various provisions are stated to be
principal conditions of the agreement.
18.2 Should the lessee violate any principal condition of this agreement
and fail to remedy this within fourteen days from the day when it
received written warning thereof, and in the case where the lessee
violates any other condition and does not
<PAGE>
remedy it within 30 days from the day when it receives written
warning thereof, this shall be deemed to be a fundamental breach of
the agreement and the lessor shall be entitled to nullify the
agreement. The nullification shall be executed in the form of a
written notice delivered to the lessee or sent to it by registered
mail.
18.3 Should the agreement be nullified by the lessor, as stated, the
lessee shall be required to vacate the leased premises within two
weeks of the day of nullification, and the provisions of section 15
above shall apply to the vacation of the premises.
18.4 In addition to any remedy to which the lessor is entitled, in
accordance with the agreement or any legal provision, on account of
a violation of this agreement by the lessee, the lessor shall be
entitled to compensation from the lessee for all damages, losses,
and diminution of revenues that it may be caused by a breach
committed by the lessee or by virtue of recourse to any remedy to
which the lessor is entitled.
Without detracting from any other right, compensation, or remedy to
which the lessor is entitled, it is agreed that the lessee shall be
liable to pay to the lessor daily usage fees for every day of
delinquency in restoring the leased premises to the lessor in
accordance with the provisions of section 15 above, in an amount
equal to one-fifteenth of the monthly rent. The lessor's entitlement
to the usage fees and the lessee's obligation to pay them shall not
in any way constitute a grant of any entitlement whatsoever to the
lessee.
It is agreed that the lessor shall be entitled to compensation
agreed upon in advance in the event of the breach of any principal
condition by the lessee, in an amount equal to the rent due to the
lessor for six months of tenancy. The amount of this compensation
has been set by the parties after being assessed by them as
appropriate, taking account of the length of the term of the lease
and the special rent conditions set by the lessor in this agreement
and in consideration of other special conditions agreed to by the
lessor. The lessor shall be entitled to the agreed upon compensation
in addition to any compensation, usage fee, entitlement, and remedy
that may be available to the lessor under this agreement and any
legal provision.
18.5 Any sum of any type whatsoever that a party to the agreement may
have paid instead of the second party shall be refunded by the
second party to the first party within seven days of a demand by the
first party, plus linkage differentials to be computed from the day
of payment until the end of that week; it is however hereby
explicitly agreed that the lessee shall not be entitled to offset
any debt that the lessor may owe it under this section and in
general from any payment that the lessee may owe the lessor.
18.6 The lessor is entitled to cash in the securities and guarantees
provided by the lessee under section 19 below, and this in addition
to any remedy or compensation to which the lessor is entitled under
this agreement and any provision of law, on the sole condition that
it has given the lessee written warning of its intention to do so at
least 14 days in advance.
<PAGE>
19. GUARANTEES
19.1 As additional security for the fulfillment of its obligations the
lessee hereby delivers to the lessor an independent bank guarantee
in the amount of NIS 122,000 (one hundred twenty-two thousand New
Israeli Sheqels) (index lined), worded on the model of the document
that is attached to his agreement as integral part thereof and
designated Appendix F. The amount of the bank guarantee as of the
date of the signing of the agreement is equal to the monthly rent
for five months, plus Value Added Tax.
The base index for the bank guarantee shall be 106.8 points.
The bank guarantee shall be payable to the benefit of the lessor and
shall be valid for one year and three months from the date of the
signing of this agreement. The lessee undertakes to extend its
validity as long as the lease remains in force, for an additional
year; such that the lessor shall always be the beneficiary of a bank
guarantee as stated and such that the bank guarantee will be in
force until three months after the expiration of the lease.
The validity of the bank guarantee shall be extended no later than
two weeks before its expiration. Should the lessee fail to extend
its validity the lessor shall be entitled to cash it in.
19.2 It is agreed that the lessor shall be entitled to cash in the bank
guarantee in the event that the lessee fails to take possession of
the leased premises on the date specified in this agreement, or if
by that date the lessee shall not have met every financial liability
or has not covered all obligations and debts owed by the lessee
(both to the lessor and to the management company), or has not
covered any damage caused it by the lessee, as well as in any case
of a violation of a principal condition of the agreement by the
lessee (and this in addition to any remedy to which the lessor is
entitled under any legal provision and under the agreement), on the
sole condition that the lessee has received written warning of the
intention to do so at least 14 days in advance.
The cashing in of the bank guarantee shall not of itself be
tantamount to cancellation of the agreement and the lessee shall be
obligated, immediately after the cashing of the guarantee, to
deliver to the lessor a new bank guarantee phrased in accordance
with Appendix F to the agreement, in the amount stated above, and
which will be in force, all in accordance with the provisions of
section 19.2 above.
19.3 The lessor shall return to the lessee the bank guarantee (or any
balance remaining after it has been cashed) no later than three
months after the end of the term of the lease, on the sole condition
that the lessee does not owe any debt or amount whatsoever to the
lessor as of that date.
19.4 In order to collect and recover any debt owed by the lessee and to
guarantee the fulfillment of every obligation incumbent upon the
lessee (including any debt or obligation of the lessee vis-a-vis the
management company), the lessor shall be
<PAGE>
entitled to cash in any security and any guarantee, individually or
all of them or any portion thereof, and the lessee and any guarantor
shall have no right to prevent the lessor from so doing. The bank
guarantees under this agreement are autonomous and not dependent on
this agreement and in general neither the lessee nor any party that
led to the taking out of the bank guarantee shall have any right to
hinder the cashing of the bank guarantee for any cause whatsoever.
19.5 Any delay in the delivery of the securities under section 19 shall
entitle the lessor to delay the transfer of possession of the leased
premises to the lessee, but the term of the lease shall be computed
from the starting date of the lease as stipulated by the lessor and
the lessee shall owe rent (and payment to the management company)
and any liability imposed under it under this agreement as of the
starting day of the lease or the date stipulated in the agreement,
even if it has not received possession of the leased premises as
stated.
19.6 Each provision of the present section 19 is a principal condition of
this agreement, the violation of which constitutes a fundamental
breach of the agreement to which are applicable also the provisions
of section 18 above.
20. MISCELLANEOUS
20.1 The lessee shall pay to the lessor, in connection with and along
with every payment made to the lessor, Value Added Tax at the rate
that may be stipulated by law at the time of payment. The lessor
shall provide the lessee with a tax invoice within the period
stipulated by law after the payment.
20.2 The lessee shall bear all expenses of tax stamps on the promissory
notes. The lessee shall convey to the lessor the amount of the stamp
tax so that the lessor can have the notes stamped for itself as
well.
20.3 The lessee shall be permitted to mount a nameplate in the building
where the leased premises are located. The size of the nameplate,
its basic design, and location must receive prior written approval
from the lessor, and this in addition to any permit that may be
required under law, all at the responsibility and expense of the
lessee.
20.4 The lessee undertakes to abide as appropriate, throughout the term
of the lease, the provisions of any law that may be in force during
the term of the lease, with regard to the leased premises, the use
thereof, the business conducted therein, and any activities there.
The lessee shall be liable for any damage or expense that the lessor
may incur as a result of the lessee's failure to meet these
obligations and the lessee shall be required to indemnify the
lessor, immediately upon demand, on account of any damage, fine,
loss, or expense incurred by the lessor.
20.5 It is agreed that only the actual payment of any amount that the
lessee may owe the lessor or the actual redemption of a promissory
note, including rent payments, shall be considered to be an
appropriate payment. The mere delivery of promissory notes
<PAGE>
to the lessor, under the provisions of this agreement, or their
endorsement shall not constitute any form of payment whatsoever.
20.6 The lessee affirms that it has examined with the planning and
construction authorities the plans for the project and the leased
premises and its ability to use the leased premises for the purpose
of the tenancy; and it has and will make no claims of any kind
whatsoever with regard to its ability or inability to receive a
business permit under the law.
A failure to receive a permit under the law or the voiding of the
permit shall not entitle the lessee to cancel the lease. It is
hereby agreed explicitly that the lessor makes no undertaking and
bears no responsibility vis-a-vis the lessee in anything associated
with the permit required by the lessee and related to the ability of
the lessee to make use of the leased premises.
All outlays, taxes, and mandatory payments required for obtaining
and extending the permit shall devolve upon the lessee alone. Should
the lessor incur any costs whatsoever on account of the need for a
permit, obtaining the permit, or extending he permit, the lessee
shall be required to refund them to the lessor within seven days of
the day upon which it is requested to do so by the lessor.
The lessee's use of the leased premises shall be exclusively for the
purpose of the tenancy and in accordance with all legal provisions.
20.7 It is agreed by the parties that only this agreement reflects what
has been stipulated, what is binding, and what is agreed to by the
parties. There is not and shall not be any validity to any
information, document, agreement, or notification that may have been
given to the lessee by the lessor or on its behalf, if given, before
the signing of this agreement.
There shall be no validity to any obligation, condition, waiver, or
amendment to the agreement unless made in advance and in writing.
The failure to have recourse to any remedy whatsoever or any
guarantee whatsoever shall not be considered to be a waiver.
20.8 The lessor shall be entitled to transfer or pledge its rights under
the present agreement to some other party or parties, on exclusive
condition that the rights of the lessee under this agreement not be
impaired. The lessor shall notify the lessee of this.
20.9 It is agreed that any payment that the lessee may be required to
make to the lessor shall be paid by the lessee in the offices of the
lessor, unless otherwise stipulated in this agreement.
20.10 It is agreed that the lessee shall be entitled to make use of the
leased premises in the evening and night as well as on Saturday
night after the conclusion of the Sabbath, and the lessor affirms
that it is not opposed to this; however, the hours of activity shall
be in accordance with all legal provisions. In everything related to
the operation of project systems at such times or on Saturday night
the lessee shall coordinate the
<PAGE>
matter with the management company and the operation of the systems
and services of the management company (including air-conditioning)
shall be in return for payment and in accordance with the conditions
that may be set by the management company. The lessee takes note of
the fact that for operation of the leased premises and operation of
the systems and provision of services by the management company at
times that are not regular working hours and on Saturday night it
will have to make special payments to the management company
according to conditions to be set by the management company.
20.11 By way of sound practice it is hereby emphasized that the project
will not be operated on Fridays, festival eves, Saturdays,
festivals, and legal holidays. The lessee takes note of the fact the
project will be closed at such times and emergency entry to it will
be possible only through an entry to be determined by the management
company.
20.12 Given that the lessee is a limited liability company, it is agreed
that the lessor shall be entitled to cancel this agreement in the
event that a receivership order (including a temporary order) or
liquidation order (including a temporary order) is issued against
the lessee, and this if the orders have not been annulled within 60
days of their issuance.
20.13 It is agreed that judicial jurisdiction in any legal proceedings
between the parties shall be held exclusively by a sitting in the
city of Jerusalem.
21. SPECIAL PROVISIONS
21.1 The lessee undertakes that the leased premises will always have a
neat and clean appearance, both in the interior of the leased
premises and its exterior. The lessee undertakes to keep the leased
premises clean on a continual basis.
21.2 The lessee shall not place any furniture, accessories, packages,
crates, materials, equipment, trash, or objects outside the leased
premises. The lessee shall make no use of any section of the
building and project other than for the purpose of access to and
from the leased premises.
21.3 The lessee undertakes not to receive deliveries to the leased
premises other than at the times and by the routes to be determined
by the management company as stated in the contract with the
management company.
21.4 The lessee undertakes not to discard trash, waste, or packages from
the leased premises other than at the times and by the routes to be
determined by the management company.
The lessee undertakes to store all waste, trash, and packages in a
concealed area inside the leased premises until such time as it is
entitled to remove them as stated above.
<PAGE>
21.5 The lessee undertakes not to take any action or make any use of the
leased premises that may create noise, odors, vibration, smoke,
contamination, or nuisance.
22. NOTIFICATIONS
Any notice from one party to the other delivered to the addresses listed
below or sent there be registered mail shall be considered to have reached
its address within 72 hours of its conveyance for delivery by registered
mail (and in the case of hand delivery, within twelve hours of
conveyance).
The lessee shall not convey or dispatch a notice such that the time
computed for its arrival or delivery falls on Friday or the eve of a
festival or Saturday or a festival day or the intermediate days of
Passover and Tabernacles.
THE ADDRESSES OF THE PARTIES FOR THE PURPOSE OF THIS AGREEMENT ARE AS
FOLLOWS:
Lessor: 27 Hamered St., Tel Aviv (c/o Isras), or any other address in Tel
Aviv of which the lessor may provide written notification to the
lessee.
Lessee: At the leased premises or 216 Jaffa Road, 94383 Jerusalem (at one of
these two addresses and each of them). The lessee's address at the
leased premises will not change.
23. POSTPONEMENTS
It is hereby agreed that should the lessor be delayed in completing the
work and utility supplies in accordance with section 4.2 above and in the
building beyond 1 March 2000, the date of the transfer of possession to
the lessee and the starting day of the lease will be postponed until a
date on which the lessor knows [thus in original; probably should be
"provides notice"] that it has completed the work and utility supplies.
Should there occur a delay in the date of the conveyance of possession as
stated, the lessee shall be liable to pay the rent under this agreement
only from the new date set by the lessor as the starting date of the
lease.
24. EARLY TERMINATION OF THE LEASE
24.1 It is agreed that on each of the dates listed below the lessee shall
be entitled to notify the lessor in writing of the early termination
of its tenancy, in such fashion that the tenancy will conclude on
the last day of the month of February immediately following the day
on which the lessor receives written notice from the lessee.
The following are the dates on which the lessee may submit such a
notice of early termination of the lease:
24.1.1 Until 31 August 2003 (for the period after 29 February
2004)
24.1.2 Until 31 August 2006 (for the period after 29 February
2007)
<PAGE>
24.2 Should the lessee submit notice in accordance with section 24.1
above (hereinafter "early termination notice"), the term of tenancy
under this agreement shall terminate on the date stipulated in
section 24.1 above (namely, on the last day of the month of February
following the early termination notice), all this on condition that
the early termination notice was submitted in due and timely
fashion. An early termination notice will be valid only if actually
delivered to the lessor by 31 of August (on one of the dates
specified in section 24.1 above).
Should no early termination notice be delivered by the date stated
above the term of the lease shall continue automatically.
Should an early termination notice be delivered to the lessor on a
date as stipulated above, the tenancy shall be seen as if it had
been originally arranged for the term ending on the last day of the
month of February immediately following the delivery of the early
termination notice, and all provisions of this agreement that apply
to the end of the term of tenancy shall apply.
24.3 Should the lessee not submit an early termination notice as stated
above the following provisions shall also apply:
24.3.1 The lessee undertakes that no later than 1 September
2003 it will convey to the lessor seven promissory notes
in accordance with the provisions of sections 6.2, 6.3,
and 6.4 above, relating to the period between 1 March
2004 and 28 February 2006, with the first promissory
note relating to the period from 1 March 2004 until 30
June 2004 and the last promissory note relating to the
period from 1 January 2006 until 28 February 2006.
24.3.2 The lessee undertakes that no later than 1 September
2006 it will convey to the lessor seven promissory notes
in accordance with the provisions of sections 6.2, 6.3,
and 6.4 above, relating to the period between 1 March
2006 and 29 February 2008, with the first promissory
note relating to the period from 1 March 2006 until 30
June 2006, and the last promissory note relating to the
period from 1 January 2008 until 29 February 2008.
24.4 Each of the provisions of section 24.3 above is a principal
condition of this agreement, the violation of which constitutes a
fundamental breach of the agreement to which are applicable also the
provisions of section 18 above.
24.5 In order to avoid any misunderstanding it is hereby agreed, in
addition to what is stated in section 24.4 above, that should the
lessee fail to convey to the lessor promissory notes in the amount
and on the date as stated in section 24.3 above, the lessor shall be
entitled (in addition to any other right and remedy under the
agreement and according to law) to inform the lessee in writing that
the term of the lease will conclude on 19 February immediately
following the latest date on which the lessee was to have conveyed
the promissory notes to the lessor.
<PAGE>
Should the lessor make such notification the term of the lease shall
be viewed as terminating on the aforesaid date and all provisions of
the agreement that apply to the end of the term of tenancy shall
apply to this date.
24.6 Should the lessee submit an early termination notice in accordance
with section 24.1, it shall also be entitled to inform the lessor,
as a separate section in the early termination notice, that the
tenancy will be terminated not necessarily on the last day of
February following the date of delivery of the early termination
notice stated but three months later, that is, on 30 June; on
condition that along with the early termination notice the lessee
convey a promissory note (in accordance with the provisions of
sections 6.2, 6.3, and 6.4, that includes the monthly rent for this
period, plus Value Added Tax; base index 106.1 points).
Should the lessee make such notification and convey a promissory
note as stated, the tenancy shall be considered as if it had
originally arranged for the period concluding on 30 June following
the delivery of the early termination notice, and all provisions of
this agreement that apply to the end of the term of tenancy shall
apply.
25. Whereas in order to construct the project and as part of the financing
thereof by Bank Hapoalim the lessor has pledged its rights in the project
and the leased premises, it is accordingly agreed that the lessor pledges
and assigns to Bank Hapoalim, in the form of a lien, all its rights
vis-a-vis the lessee and hereby gives the lessee an irrevocable order to
pay the rent and all other payments that are due and may be due it from
the lessee, under this tenancy agreement, into the lessor's account No.
696653 at the Kikar Rabin Tel Aviv branch (No. 609) of Bank Hapoalim. The
lessee's signature on this tenancy agreement constitutes an undertaking on
its part vis-a-vis the bank to act as stated. The promissory notes
conveyed by the lessee to the lessor will be deposited by the lessor in
the aforesaid bank account.
26. PARKING PRIVILEGES IN THE PARKING FACILITIES OF THE PROJECT
The lessor confirms that 4 parking spaces (whose numbers are _____ through
____, inclusive, two parking spaces in the parking facility in Building B
and _____ through _____, inclusive, and two parking spaces in the parking
garage in Building C) will be allocated to the lessee in the parking
facilities of the project, and this for the term of tenancy, on sole
condition that the lessee concludes a separate parking agreement with the
operator of the parking facility, pay the parking fees in accordance with
the parking agreement, and meet all other conditions of the parking
agreement.
It is agreed that the monthly parking fee for each parking space shall be
NIS 317 (three hundred seventeen New Israeli Sheqels) (plus Value Added
Tax), linked to the index (base index: 106.8 points), and that this is
included in the rent stipulated in section 5.1 above.
At the time of the signing of the present agreement the lessee and lessor
are also signing a Parking Agreement, but the lessee confirms that the
"parking facility operator" in accordance with the Parking Agreement will
be designated by the lessor after the signing
<PAGE>
of the Parking Agreement, and that any right or obligation of the "parking
facility operator" shall adhere to the stated "parking facility operator"
in place of the lessor.
When the "parking facility operator" replaces the lessor, the lessor shall
have no obligation with regard to parking and the parking facility, except
for its confirmation that the lessee is entitled (in the conditions
enumerated above) to the stated parking spaces and to the usage fees as
stated.
In everything related to parking, the provisions of the Parking Agreement
only shall apply; nevertheless, to the extent that the parking facility or
any part thereof may be operated commercially, the parking facility
operator shall bear a proportional share of the maintenance expenses for
the parking facility, including taxes and municipal rates, in accordance
with the number of parking spaces commercially available as a share of all
the parking spaces in the parking facility.
IN WITNESS WHEREOF THE PARTIES HAVE AFFIXED THEIR SIGNATURES
Today, 13 December 1999, in Jerusalem
[company stamp: [company stamp:
Har Hotzvim Properties, Ltd.] BRT Biopharmaceuticals Ltd.]
[signatures: ?? & ??] [signatures: Moshe Laster & Ira Weinstein]
HAR HOTZVIM PROPERTIES, LTD. BRT BIOPHARMACEUTICALS LTD.
LESSOR LESSEE
[ref. heh het - shin kaf B-6]
