EXHIBIT 10.1


 


 


 


THIRD AMENDMENT TO SUBLEASE





 


This THIRD AMENDMENT TO SUBLEASE (this
"Amendment") is entered into and made effective as of the 11th day of March, 2019 ("Amendment
Date"), by and between CSG SYSTEMS, INC., a Delaware corporation (“Sublandlord”), and ZYNEX,
INC., a Nevada corporation (“Subtenant”).





 


RECITALS:





 


		A.	Maroon Office Partners II, LLC, a Colorado limited liability
company, as predecessor-in-interest to Two Maroon Circle Investors, LLC, a Delaware limited liability company (“Prime
Landlord”), and Sublandlord, as tenant, entered into an Office Lease dated as of September 28, 1999 (as amended,
the “Prime Lease”), whereby Sublandlord leased certain premises from Prime Landlord (the “Premises”).



 


		B.	Sublandlord and Subtenant entered into that certain Agreement
of Sublease dated as of the 20th day of October, 2017 (the “Original Sublease”), as amended by that certain
First Amendment to Sublease dated November 27, 2017 (the “First Sublease Amendment”), and that certain
Second Amendment to Sublease dated March 30, 2018 (the Second Sublease Amendment”),, pursuant to which Subtenant subleases
from Sublandlord that certain premises (the “Subleased Premises”) in the Building, which is located at 9555
Maroon Circle, Englewood, Colorado 80112. The Original Sublease, as amended by the First Sublease Amendment and the Second Sublease
Amendment, is referred to herein as the “Sublease.”



 


		C.	Sublandlord and Subtenant desire to enter into this Amendment
to amend the Sublease upon the terms set forth herein.



 


AGREEMENT:





 


NOW, THEREFORE, for $10.00 and other good
and valuable consideration the receipt and adequacy of which are hereby acknowledged, Sublandlord and Subtenant agree as follows:





 


		1.	Capitalized Terms. Capitalized terms used but
not defined herein shall have the same meaning as set forth in the Sublease.



 


		2.	Subleased Premises.



 


		a.	Effective as of the later of June 1, 2019 or the date
the Sublandlord completes the Expansion Work (as defined below) (the “Expansion Date”), the area shown on Exhibit
A attached to this Amendment, consisting of 21,420 rentable square feet (the “Expansion Subleased Premises”),
shall be added to and deemed part of the Subleased Premises under the Sublease. Except as otherwise provided by this Amendment,
all terms and conditions of the Sublease applicable to the Subleased Premises, other than Sections 5.3, 5.4, 5.5, and 7.5, shall
apply to the Expansion Subleased Premises on the Expansion Date.



 






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		b.	Notwithstanding the foregoing to the contrary, Subtenant
shall have the right to access the Expansion Subleased Premises early commencing on the date that Prime Landlord consents to the
terms of this Amendment by execution and delivery to Sublandlord of a consent of Prime Landlord provided that: (a) other than
with respect to the payment of Expansion Rent (as defined below), Subtenant shall comply and abide by all terms, obligations,
and liabilities under the Sublease applicable to the Subleased Premises with respect to the Expansion Subleased Premises commencing
upon such occupancy; (b) Subtenant shall deliver certificates of insurance reasonably satisfactory to Sublandlord evidencing that
the Expansion Subleased Premises is insured pursuant to the requirements of the Sublease applicable to the Subleased Premises;
(c) the sole purpose for such occupancy shall be to store Subtenant’s inventory, including, medical units (electrotherapy),
bags, electrodes, and batteries, and similar items (“Inventory”) in the Expansion Subleased Premises; (d) Subtenant
shall provide Sublandlord with two (2) business days’ prior written notice which shall identify the times at which Subtenant
shall enter the Expansion Subleased Premises; (e) Sublandlord shall have the right to have its representative(s) escort and supervise
Subtenant’s entry into the Expansion Subleased Premises at all times; (f) Neither Prime Landlord nor Sublandlord shall have
any liability whatsoever with respect to Subtenant’s rights under this Section 2(b) it being understood and agreed that
Subtenant shall indemnify, defend, and hold harmless Prime Landlord, Sublandlord and their respective employees, agents, contractors,
officers, directors, members, and principals from and against any loss, damage, claim or liability incurred or asserted in connection
with the exercise of Subtenant’s rights under this Section 2(b); and (g) Subtenant shall ensure that the placement of Inventory
in the Expansion Subleased Premises does not exceed the maximum floor load capacity for the Expansion Subleased Premises.



 


		c.	Notwithstanding the foregoing to the contrary, Subtenant
shall have the right to access the Expansion Subleased Premises early commencing on May 1, 2019, provided that: (a) other than
with respect to the payment of Expansion Rent (as defined below), Subtenant shall comply and abide by all terms, obligations,
and liabilities under the Sublease applicable to the Subleased Premises with respect to the Expansion Subleased Premises commencing
upon such occupancy; (b) Subtenant shall deliver certificates of insurance reasonably satisfactory to Sublandlord evidencing that
the Expansion Subleased Premises is insured pursuant to the requirements of the Sublease applicable to the Subleased Premises;
(c) the sole purpose for such occupancy shall be to install Subtenant’s furniture, fixtures, and equipment in the Subleased
Premises; and (d) Neither Prime Landlord nor Sublandlord shall have any liability whatsoever with respect to Subtenant’s
rights under this Section 2(c) it being understood and agreed that Subtenant shall indemnify, defend, and hold harmless Prime
Landlord, Sublandlord and their respective employees, agents, contractors, officers, directors, members, and principals from and
against any loss, damage, claim or liability incurred or asserted in connection with the exercise of Subtenant’s rights
under this Section 2(c). If the Expansion Subleased Premises Work has not been completed by May 1, 2019, then the following terms
shall also apply with respect to such occupancy: (a) Subtenant shall provide Sublandlord with two (2) business days’ prior
written notice which shall identify the times at which Subtenant shall enter the Expansion Subleased Premises; and (b) Sublandlord
shall have the right to have its representative(s) escort and supervise Subtenant’s entry into the Expansion Subleased Premises
at all times



 


		d.	Except for the Expansion Work (as defined below), Sublandlord
shall deliver, and Subtenant shall accept the Expansion Subleased Premises and Expansion FF&E (as defined below) when delivered
to Subtenant in its “AS-IS, WHERE IS” condition and “WITH ALL FAULTS” existing on the Expansion Date.
Subtenant acknowledges that, except as set forth in Section 4 of this Amendment, neither Prime Landlord nor Sublandlord nor any
agent of Prime Landlord or Sublandlord has made any representation or warranty with respect to the Expansion Subleased Premises
or Expansion FF&E, or with respect to the suitability of any part of the same for the conduct of Subtenant’s business.



 






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		e.	Notwithstanding anything herein to the contrary, Sublandlord
shall not be responsible for any tenant improvement allowance or other modifications to the Expansion Subleased Premises other
than the Expansion Work. For the purpose of clarity, the terms of Sections 5.3 and 5.4 of the Sublease shall not apply to the
Expansion Subleased Premises.



 


		3.	Expansion Rent.



 


		a.	Gross Rent. Subtenant shall pay to Sublandlord
during the Term of the Sublease annual gross rent for the Expansion Subleased Premises (“Expansion Gross Rent”)
as follows:



 


 


	Period of the Term:	Rate/Square Foot/Annum:	Annual Gross Rent	Monthly Gross Rent
	Expansion Date – December 31, 2019	$10.00	$214,200.00	$17,850.00*
	January 1, 2020 – October 31, 2020	$20.75	$444,465.00	$37,038.75
	November 1, 2020 – October 31, 2021	$21.75	$465,885.00	$38,823.75
	November 1, 2021 – October 31, 2022	$22.75	$487,305.00	$40,608.75
	November 1, 2022 – June 30, 2023	$23.75	$508,725.00	$42,393.75
	July 1, 2023 - June 30, 2024**	$27.50	$589,050.00	$49,087.50
	July 1, 2024-June 30, 2025**	$28.25	$605,115.00	$50,426.25





 


* The Expansion Date will be June 1, 2019,
or the date the Sublandlord completes the Expansion Work, whichever is later. In the event Sublandlord fails to complete the Expansion
Work on or before June 1, 2019, Subtenant will be entitled to a credit against the Expansion Gross Rent equivalent to two (2) days
of rent for each day the Expansion Date is delayed after June 1, 2019 unless such delay is attributable to a force majeure event
or delays caused by Subtenant.


 


**Denotes optional Renewal period as described
in Section 19 of the Sublease.


 


		b.	Additional Charges.



 


		i.	The parties hereby acknowledge and agree that, with respect
to the Expansion Subleased Premises, the Sublease as amended hereby, is intended to be a Full Service Gross sublease and that
commencing after the 2019 calendar year (“Expansion Sublease Base Year”) Subtenant shall be responsible for
the payment of Subtenant’s Expansion Share (as defined below) of all Operating Expenses that exceed the total amount of
Operating Expenses payable by Sublandlord under the Prime Lease for the Expansion Sublease Base Year (which will include both
the pro-rated estimated amount on the Budget Sheet and the additional actual Operating Expenses according to the Landlord’s
Statement). Subtenant shall also be responsible for the payment of Subtenant’s Expansion Share of all Building Operating
Expenses (as defined below) that exceed the amount of Building Operating Expenses incurred by Sublandlord during the Expansion
Sublease Base Year. The amounts payable pursuant to this Section 3(b) are collectively referred to as, “Expansion Additional
Rent”, and together with Expansion Gross Rent and all other amounts payable by Subtenant with respect to the Expansion
Subleased Premises, “Expansion Rent”. A copy of the Landlord Statement for the Expansion Sublease Base Year
expenses shall be provided to Subtenant.



 






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		ii.	Payment of such amounts due hereunder shall be made by
Subtenant in the same manner as Sublandlord shall be required to pay such amounts pursuant to the Prime Lease (except as specifically
set forth below) and paid to Sublandlord for forwarding to the Prime Landlord.



 


		iii.	“Subtenant’s Expansion Share” is equal to a fraction, the numerator of
which is the rentable area of the Expansion Subleased Premises and the denominator of which is the total rentable area of the Building
excluding areas designated as common areas for the use of subtenants under the Prime Lease by Sublandlord.



 


		iv.	“Building Operating Expenses” are expenses incurred by Sublandlord in connection
with the operation, maintenance, and repair of areas of the Building designated by Sublandlord as common areas for the use of subtenants
under the Prime Lease, but only to the extent that such expenses would constitute “Operating Expenses” under the Prime
Lease if incurred by Prime Landlord in connection with the ownership, operation and maintenance of the Building Complex; provided,
however, in no event shall any Operating Expenses or Building Operating Expenses be duplicative of each other.



 


		c.	Subtenant's Covenant to Pay Rent. Subtenant's obligation to pay Expansion Rent shall commence
on the Expansion Date. Expansion Rent shall be payable in equal monthly installments in advance on the first (1st) day of each
and every calendar month during the Term, without setoff, deduction, notice or demand at the address of Sublandlord set forth in
Section 12 of the Sublease.



 


		4.	Expansion Work. Sublandlord covenants and agrees to complete the work identified on Exhibit
B (the “Expansion Work”) attached to this Amendment prior to May 1, 2019 and to use commercially reasonable
efforts to complete the Expansion Work on or before such date. Sublandlord agrees to promptly submit the plans for the Expansion
Work to the Prime Landlord for prior approval in accordance with the Prime Lease. Sublandlord shall warrant that the Expansion
Work is designed, engineered and constructed in a good and workmanlike manner, free of any latent defects, liens or other encumbrances,
and in accordance with the terms and conditions of the Prime Lease, and all applicable laws for a period of one (1) year following
completion of the Expansion Work. Sublandlord shall be responsible for any costs associated with completion of the Expansion Work.
Sublandlord’s obligations under this Amendment to deliver the Expansion Subleased Premises to Subtenant is contingent and
conditioned upon Prime Landlord approving the Expansion Work.



 


		5.	FF&E.






 


		a.	Sublandlord shall not remove that certain furniture, fixture, and equipment that was located in
the Expansion Subleased Premises when Subtenant toured the space (collectively, the “Expansion FF&E”) from
the Expansion Subleased Premises prior to the Expansion Date and the Expansion FF&E shall remain in the Expansion Subleased
Premises upon delivery thereof to Subtenant.



 


		b.	For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
and (to the extent that it constitutes Tenant’s Property under the Prime Lease) Sublandlord, does hereby transfer, bargain
and convey to Subtenant, all FF&E and Expansion FF&E with such transfer and conveyance to be effective upon the expiration
or earlier termination of the Sublease. The FF&E and Expansion FF&E shall be conveyed to Buyer on a quitclaim, “as
is,” “where is” and “with all faults” basis, without representations, warranties and/or covenants,
express or implied, of any kind or nature.



 






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		c.	Subtenant shall be responsible for the removal of all FF&E and Expansion FF&E from the
Expansion Subleased Premises at the expiration of the Term pursuant and subject to the requirements of the Prime Lease applicable
thereto.



 


		6.	Parking. Notwithstanding any provision herein to the contrary, Subtenant shall have the
parking rights and obligations of Sublandlord that are allocated or attributable to the Expansion Subleased Premises based on Subtenant’s
Expansion Share. Any right to utilize a fractional portion of a parking space allocated to the Expansion Subleased Premises shall
be retained by Sublandlord for its benefit such that the number of parking spaces allocated to the Expansion Subleased Premises
is a whole number. Commencing on the first day of the 19th calendar month following the Expansion Date , Subtenant shall pay Sublandlord
rental of $100 per month per each of the Covered Parking Spaces allocated to Subtenant pursuant to this Section 6 as Rent.



 


		7.	Security Deposit. Upon Subtenant’s execution and delivery of this Amendment to Sublandlord,
Subtenant shall deposit with Sublandlord the sum of $37,039 as additional security for the performance by Subtenant of all of the
terms, covenants, and conditions required to be performed by it under the Sublease as amended hereby (the “Expansion Security
Deposit”). The Expansion Security Deposit shall be deemed part of the Security Deposit under the Sublease and all terms
applicable to the Security Deposit under the Sublease shall apply to the Expansion Security Deposit. Accordingly, the aggregate
amount of the Security Deposit is hereby increased to $319,069.



 


		8.	Right of First Offer. Section 18 of the Sublease is hereby terminated with respect to the
Expansion Subleased Premises but will remain in effect for the remainder of the First Offer Space.



 


		9.	Sublandlord’s Notice Address. The address of Sublandlord for the purpose of notices
delivered pursuant to Section 12 of the Original Sublease is hereby amended to be:



 


 


	If to Sublandlord:	
        CSG Systems, Inc.

        

        6175 S. Willow Drive

        

        Greenwood Village, CO 8011

        

        Attn: General Counsel

        

        E-Mail: Greg.Cannon@csgi.com 

	 	 
	With a copy to:	
        CSG Systems, Inc.

        

        6175 S. Willow Drive

        

        Greenwood Village, CO 8011

        

        Attn: Ronen Hirshorn

        

        E-Mail: Ronen.Hirshorn@csgi.com 

	 	 
	With a copy to:	Brownstein Hyatt Farber Schreck,
    LLP

    410 17th Street, Suite 2200

    Denver, Colorado 80202

    Attention: Noelle Riccardella

    Phone: 303.223.1204

    Electronic Mail: NRiccardella@BHFS.com


 






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		10.	Miscellaneous.



 


		a.	Full Force and Effect. Except as amended by this
Amendment, the Sublease remains in full force and effect and is hereby ratified by Sublandlord and Subtenant. In the event of
any conflict between the Original Sublease, First Sublease Amendment, Second Sublease Amendment and this Amendment, the terms
and conditions of this Amendment shall control.



 


		b.	Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of
the parties hereto and their heirs, personal representatives, successors and assigns.



 


		c.	Entire Agreement. This Amendment contains the entire agreement of Sublandlord and Subtenant
with respect to the subject matter hereof and may not be amended or modified except by an instrument executed in writing by Sublandlord
and Subtenant.



 


		d.	Power and Authority. Except as set forth herein, Subtenant has not assigned or transferred
any interest in the Sublease and has full power and authority to execute this Amendment.



 


		e.	Counterparts. This Amendment may be executed in any number of counterparts each of which
shall be an original and all of which taken together shall constitute one and the same agreement. Executed copies hereof may be
delivered by facsimile, PDF or email, and, upon receipt, shall be deemed originals and binding upon the parties hereto.



 


		f.	Attorneys' Fees. In the event of litigation arising out of or in connection with this Amendment,
the prevailing party shall be awarded reasonable attorneys' fees, costs and expenses.



 


		g.	Partial Invalidity. If any term, covenant or condition of this Amendment or the application
thereof to any person, firm or corporation, or circumstance, shall be invalid or unenforceable, the remainder of this Amendment
or the application of such term, convent or condition to persons, firms or corporations, or circumstances, other than those as
to which it is held invalid, shall be both unaffected thereby and each term, covenant or condition of this Amendment shall be valid
and be enforced to the fullest extent permitted by law.



 


		h.	Governing Law. This Amendment shall be governed by and construed in accordance with the
laws of the State of Colorado.



 


		i.	Brokers. Sublandlord and Subtenant hereby represent and warrant that there are no brokers
or others who might be entitled to any fees or commissions as a result of this Amendment or Subtenant's occupancy of the Expansion
Subleased Premises as a result of the actions or omissions of Sublandlord or Subtenant, except for Savills Studley as Subtenant’s
exclusive agent (“Subtenant’s Broker”) and CBRE as Sublandlord’s exclusive agent (“Sublandlord’s
Broker”), whose commissions will be paid by separate written agreement. Sublandlord hereby indemnifies, defends and
holds harmless Prime Landlord and Subtenant from and against any and all loss, cost, damage or expense suffered or incurred by
Prime Landlord or Subtenant as a result of any claim made against Prime Landlord or Subtenant which is based upon a breach of the
foregoing representation and warranty by Sublandlord. Subtenant hereby indemnifies, defends and holds harmless Prime Landlord and
Sublandlord from and against any and all loss, cost, damage or expense suffered or incurred by Prime Landlord or Sublandlord as
a result of any claim made against Prime Landlord or Sublandlord which is based upon a breach of the foregoing representation and
warranty by Subtenant. This paragraph shall survive the expiration or termination of this Amendment, by lapse of time or otherwise.









 


[Signatures appear on the following
page.]


 






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IN WITNESS WHEREOF, Sublandlord and Subtenant
have caused this Amendment to be executed and made effective as of the Amendment Date.


 





 


SUBTENANT:


 





 


ZYNEX, INC.,


 


a Nevada Corporation


 


By: /s/ Daniel J. Moorhead


 


Name: Daniel Moorhead


 


Title: Chief Financial Officer


 





 


 


 


 


 


 


[INTENTIONALLY BLANK; SUBLANDLORD’S
SIGNATURE FOLLOWS]


 






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SUBLANDLORD:


 


 


 


CSG SYSTEMS, INC.,


 


a Delaware corporation


 


By:/s/ Gregory L. Cannon 


 


Name: Gregory L. Cannon


 


Title: Senior Vice President and
General Counsel


 






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EXHIBIT A EXPANSION SUBLEASED PREMISES


 


 


 





 


 






    


Exhibit A – Page 1


 







     


    




 


EXHIBIT B EXPANSION WORK


 


		1.	Sublandlord shall have the carpets in the Expansion Subleased Premises cleaned.






 


		2.	Sublandlord shall enclose the existing stairwell connecting the second (2nd) and third
(3rd) floors pursuant to plans and specifications approved by Sublandlord and Prime Landlord.