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the terms of this Agreement and to wait a reasonable time for such <br />compliance, but in any event to suspend its own performance under <br />this Agreement until Lessee complies, or (4) any combination of <br />(1) , (2) or (3) above. <br />2.05 LESSOR'S WARRANTIES. <br />(a) Quiet_ Enjoyment. Lessor covenants and warrants to Lessee <br />that, subject to the terms and conditions of this Agreement, and <br />conditioned on Lessee's strict compliance with the terms, <br />conditions and covenants of this Agreement, Lessee shall enjoy the <br />quiet and useful benefit of the Premises free from interruption by <br />Lessor or any person or entity claiming through it. <br />(b) Authority. Lessor covenants and warrants to Lessee that <br />it has the power and authority to execute this Agreement and, <br />subject to its terms and conditions, to convey to Lessee the quiet <br />enjoyment and use of the Premises warranted in paragraph 2.05(a). <br />(c) Zoning. Lessor covenants and warrants to Lessee that the <br />Premises are properly zoned under the Chapel Hill Development <br />Ordinance for uses which include the operation of a general <br />business office as provided in paragraph 2.04(a). <br />(d) Indemnity. Lessor agrees to indemnify and save Lessee <br />harmless from any claim, demands, actions, claims or proceedings <br />which may arise or be instituted by reason of Lessor's breach of <br />the warranties contained in paragraphs 2.05(a), (b) and (c). <br />2.06 PERMISSIVE SUBLETTING; ASSIGNMENT PROHIBITED. <br />(a) Subletting. Lessee shall have the right to sublease all <br />or part of the Premises to a third party or parties, but any such <br />-5- <br />