EXHIBIT 10.16
SUITE ▇▇▇ - ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
BURNABY, BC
OFFER TO SUB-SUB-LEASE
BETWEEN
PC ▇▇▇▇▇▇▇.▇▇▇ INC.
(SUB-SUB-LANDLORD)
AND
▇▇▇▇▇.▇▇▇ NETWORK HOLDINGS CORPORATION
(SUB-SUB-TENANT)
Colliers ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Inc.
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ (▇▇▇) ▇▇▇-▇▇▇▇
Office Division
("Agent")
OFFER TO SUB-SUB-LEASE
SUITE ▇▇▇ - ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
BURNABY, BC
(THE "BUILDING")
TO: PC ▇▇▇▇▇▇▇.▇▇▇ INC. ("Sub-Sub-Landlord")
▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇ ▇-▇
▇▇▇▇▇▇▇▇▇, ▇▇
▇▇▇ ▇▇▇
WE: ▇▇▇▇▇.▇▇▇ NETWORK HOLDINGS CORPORATION ("Sub-Sub-Tenant")
▇▇▇ - ▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇
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hereby offer to sub-lease from the Sub-Sub-Landlord, upon the following terms
and conditions, the premises on the second (2nd) floor of the Building, having a
Rentable Area of approximately seven thousand three hundred forty seven (7,347)
square feet (the "Leased Premises"). The floor area of the Sub-Lease Premises
is as shown outlined in heavy black on the plan forming Schedule "A" to the
Offer to Sub-Sub-Lease.
1. TERM
The Term of the Sub-Sub-Lease shall be two (2) years and twenty-nine (29)
days commencing on the 15th day of October, 2000 (the "Commencement Date")
and expiring on the 29th day of November, 2002.
2. BASIC RENT
The Basic Rent, plus any applicable Goods and Services Tax, shall be
payable monthly in advance by the Sub-Sub-Tenant on the first day of each
month during the Term to the Sub-Sub-Landlord. The Basic Rent shall be
based on the Rentable Area of the Lease Premises and measured in a manner
prescribed by the Lease calculated at $6.50 per square foot per annum.
3. OPERATING COSTS AND PROPERTY TAXES
The Sub-Sub-Tenant's Proportionate Share of Operating Costs and Property
Taxes, currently estimated at $10.08 per square foot for the 2000 fiscal
year, plus Goods and Services Tax, shall be payable as additional rent as
per the terms of the Lease during the Term in addition to the Basic Rent.
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4. DEPOSIT
A cheque for Twenty One Thousand Seven Hundred Twenty Three Dollars Thirty
Six Cents ($21,723.36) (the "Deposit") payable to the Agent, Colliers
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Inc., in trust, shall be tendered upon acceptance as the
Deposit and to be credited in payment firstly towards the last month's rent
and thereafter towards the first rent due, plus any applicable Goods and
Services Tax, and to be returned to the Sub-Sub-Tenant if this Offer is not
accepted. In the event the Sub-Sub-Tenant defaults under the terms hereof,
the Sub-Sub-Landlord may terminate this agreement and retain the Deposit on
account of damages and not as a penalty, without prejudice to any other
remedy.
5. LEASE
The Sub-Sub-Tenant covenants to abide by all the terms of the Landlord's
Lease (the "Lease") with the exception of the terms set out in this Offer
which differ from the terms of the Lease. The Sub-Sub-Tenant acknowledges
having received a copy of the Lease.
6. ACCESS
For the purposes of planning and the construction of its Leasehold
Improvements, the Sub-Sub-Tenant shall have access to the Leased Premises
upon Landlord's consent. During this period, the Sub-Sub-Tenant shall not
be obligated to pay any Basic Rent or Additional Rent but shall abide by
all other terms of the Lease.
7. WORK
PC ▇▇▇▇▇▇▇.▇▇▇ inc. will provide assistance (limited to one person day)
should need arise to identify and connect cabling for network and telephone
connection.
The Sub-Sub-Tenant accepts the Leased Premises "as is." Any other work
shall be the responsibility of the Sub-Sub-Tenant and shall require the
Landlord's approval.
8. SUB-SUB-LANDLORD TO DETERMINE FINANCIAL STRENGTH OF SUB-SUB-TENANT
Acceptance of this Offer by the Sub-Sub-Landlord is conditional upon the
Sub-Sub-Tenant providing the Sub-Sub-Landlord with information respecting
the financial status of the Sub-Sub-Tenant as the Sub-Sub-Landlord may
reasonably require for the purposes of determining the financial strength
of the Sub-Sub-Tenant. The Sub-Sub-Tenant shall furnish the Sub-Sub-
Landlord with such information forthwith upon acceptance of this Offer. The
Sub-Sub-Landlord shall have five (5) business days from the date of
provision of the financial information to determine whether or not the Sub-
Sub-Tenant is acceptable to the Sub-Sub-Landlord. The Sub-Sub-Landlord
shall notify the Sub-Sub-Tenant within five (5) business days of receipt of
the financial information that the tenancy is acceptable to it, failing
which this Offer shall become null and void and the Deposit shall be
returned to the Sub-Sub-Tenant.
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9. PARKING
The Sub-Sub-Landlord shall provide, at the Sub-Sub-Tenant's cost, up to
fourteen (14) random parking stalls in the Building at the prevailing
market rates currently $45.00 per stall per month. The Sub-Sub-Tenant
shall specify the number of parking stalls it requires prior to the
Commencement Date. The rental rate for stalls is subject to adjustment to
comparable parking rates in the area.
10. USE
The Leased Premises shall be used only for the purposes of a general
business office.
11. SOLE AGREEMENT
There are no agreements, covenants, representations, warranties or
conditions in any way relating to the subject matter of this agreement
expressed or implied, collateral or otherwise, except as expressly set
forth herein.
12. TIME OF THE ESSENCE
Time is of the essence of this agreement.
13. DEFINITIONS
Words defined in the Lease and used herein shall have the same meaning
ascribed to them by the Lease.
14. CONSENT OF LANDLORD
This Offer is subject to the consent of the Landlord in accordance with the
terms of the Lease. The parties shall execute the Landlord's consent
documentation. The Sub-Sub-Landlord shall pay any consent fees.
15. OFFER PROVISIONS
All terms of this Offer shall survive the completion of this transaction
and shall not merge. In the event of any conflict between the terms of
this Offer and the terms of the Lease, the terms of this Offer shall
prevail.
16. DISCLOSURE
The Sub-Sub-Landlord and the Sub-Sub-Tenant acknowledge and agree that:
(i) Colliers ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ Inc. (the "Agent") has disclosed that it is
representing the Sub-Sub-Landlord and the Sub-Sub-Tenant in this
transaction;
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(ii) the Agent, in order to accommodate the transaction described in this
Agreement, was and is entitled to pass any relevant information it
receives from either party or from any other source to either of the
parties as the Agent sees fit, without being in conflict of its
duties to either party; and
(iii) the Sub-Sub-Landlord shall pay the commission and compensation due to
the Agent pursuant to the transaction described in this Agreement.
17. ACCEPTANCE
This Offer shall be irrevocable and open for acceptance until 5:00 p.m. on
the 31st day of August, 2000, after which time if not accepted this Offer
shall be null and void and the Deposit shall be returned in full to the
Sub-Sub-Tenant. This Offer may be accepted by signing and returning one
duplicate copy or facsimile of this Offer.
DATED this 28 day of August, 2000.
▇▇▇▇▇.▇▇▇ NETWORK HOLDINGS CORPORATION
SUB-SUB-TENANT
Per: _____________________
ACCEPTANCE
The Sub-Sub-Landlord hereby accepts the above Offer this 31st day of August,
2000.
PC ▇▇▇▇▇▇▇.▇▇▇ INC.
SUB-SUB-LANDLORD
Per: _____________________
LANDLORD'S CONSENT
The Landlord hereby consents to the attached Offer this ______ day of September,
2000.
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ REAL ESTATE GROUP
LANDLORD
Per: _____________________
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SUB-LANDLORD'S CONSENT
The Sub-Landlord hereby consents to the attached Offer this ______ day of
September, 2000.
ELECTRONIC ARTS (CANADA), INC.
SUB-LANDLORD
Per: _____________________