EXHIBIT 10.32
FIRST AMENDMENT TO LEASE
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April 3 ,1998
RE: PREMISES EXPANSION
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This First Amendment, dated for reference purposes only, April 3, 1998, is made
by and between FORTUNE FIFTY ASSOCIATES, a California General Partnership
("LESSOR"), and EIS, INC., a California Corporation ("LESSEE").
WITNESSETH:
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WHEREAS, Lessor and Lessee did enter into a Lease, dated for reference purposes
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only, February 23, 1998, for the Premises located at 00000 Xxx Xxxxxxxxxxx Xxxx,
Xxxxx #000, Xxxxxxxxxx, Xxxxxxxxxx, more particularly described in said lease
(hereinafter referred to as the "Agreement"), and;
WHEREAS, Lessor and Lessee desire to amend the Agreement in the manner and to
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the extent hereinafter set forth;
NOW THEREFORE, in consideration of the Premises, of the covenants, and
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agreements contained herein, and other good valuable consideration mutually
exchanged by and between the parties hereto, it is agreed as follows:
1. The "TERM", referenced in Paragraph 1.3 of the Agreement, is hereby amended
as follows:
"TERM: 5 years and three months ("Original Term") commencing June 1, 1998
("Commencement Date") and ending August 31, 2003 ("Expiration Date"). (Also
see Paragraphs 3.2 and 3.3.)"
2. The "BASE RENT", referenced in Paragraph 1.5 of the Agreement, is hereby
amended as follows:
"BASE RENT: $ (See paragraph 49) per month ("Base Rent"), payable on the
first day of each month commencing August 1, 1998 (August 1998 Base Rent
prepaid by Lessee upon Lease execution) (Also see Paragraph 4.)"
3. The "BASE RENT PAID UPON EXECUTION", referenced in Paragraph 1.6(a) of the
Agreement, is hereby amended as follows:
"BASE RENT PAID UPON EXECUTION: $6,480.00 as Base Rent for the period
August 1, 1998 to August 31, 1998."
4. The "RENT SCHEDULE", as specified in Paragraph #49 of the Agreement, is
hereby amended as follows:
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"RENT SCHEDULE: Lessee shall pay to Lessor Base Rent for the Premises in
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monthly installments on the first day of each month of the lease term as
follows:
NETBASE
MONTHS' #MONTHS PERIOD RENT/MO.
------- ------- ------ --------
01-02 2 06/01/1998 - 07/31/1998 Free Rent
03-26 24 08/01/1998 - 07/31/2000 $6,480.00
27-38 12 08/01/2000 - 07/31/2001 $7,844.00
39-50 12 08/01/2001 - 07/31/2002 $8,061.00
51-63 13 08/01/2002 - 08/31/2003 $8,285.00
In addition to Net Base Rent, Lessee shall pay its pro-rata share of all
"Common Area Operating Expenses", estimated to be $1,705.00 per month
($.13531/Sq.Ft./month) upon commencement of this lease, as defined in
paragraph #4.2, applicable to the Premises Building. Lessee's pro-rata
share is 25.97%, determined by the Premises rentable square footage (12,600
square feet) divided by the total rentable square footage of the Premises
Building (48,518 square feet). Lessee shall not be required to pay Common
Area Operating Expenses during the Free Rent period. During the initial
term of this lease, Lessee's share of Common Area Operating Expenses shall
be capped as follows:
MONTHLY
COMMON AREA
OPERATING
MONTHS' # MONTHS PERIOD EXPENSES CAP
------- -------- ------ ------------
01-02 2 06/01/1998 - 07/31/1998 $ 0.00
03-07 5 08/01/1998 - 12/31/1998 $1,705.00
08-19 12 01/01/1999 - 12/31/1999 $1,756.15
20-31 12 01/01/2000 - 12/31/2000 $1,808.83
32-43 12 01/01/2001 - 12/31/2001 $1,863.10
44-55 12 01/01/2002 - 12/31/2002 $1,918.99
56-63 8 01/01/2003 - 08/31/2003 $1,976.56
See the "1997 Triple Net Expense Reconciliation" attached to the Agreement
as Exhibit "C".
5. The "OPTION TO EXTEND", as specified in Paragraph #50 of the Agreement, is
hereby amended as follows:
"OPTION TO EXTEND: Lessor hereby grants to Lessee, subject to all of the
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provisions of this lease, the option to extend this lease for one (1)
additional term of five (5) years, subject to the following conditions:
a. This lease shall be in full force and effect at the time notice of
exercise of option is given and on the last day of the term.
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b. Lessee shall not be in default under any provision of this lease at
the time notice of exercise is given, or at any time during the term
for a consecutive period of more than sixty (60) days.
c. Lessee shall give Lessor, at least six (6) months prior to the last
day of the term, written notice exercising the option to extend.
d. The Base Monthly Rent payable by Lessee during the Option Term shall
be as follows:
NET BASE
MONTHS' #MONTHS PERIOD RENT/MO.
------- ------- ------ --------
64-75 12 09/01/2003 - 08/31/2004 $8.533.00
76-87 12 09/01/2004 - 08/31/2005 $8,789.00
88-99 12 09/01/2005 - 08/31/2006 $9,053.00
100-111 12 09101/2006 - 08/31/2007 $9,325.00
112-123 12 09/01/2007 - 08/31/2008 $9,605.00
Commencement of the extension term will immediately follow the expiration
of the original term. The option shall be exercised by Lessee by delivering
or mailing, postage prepaid, certified mail, notice to Lessor stating that
Lessee is irrevocably exercising his option to extend. In the event that
the option is not exercised as provided for herein, the option shall
expire, and Lessee shall not have the right to extend the term of this
lease. During the option term of this lease, Lessee's share of Common Area
Operating Expenses shall not be capped."
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6. `The "TENANT IMPROVEMENTS / ALLOWANCE", as specified in Paragraph #52 of
the Agreement, is hereby amended as follows:
"TENANT IMPROVEMENTS / ALLOWANCE: The Premises shall be leased by Lessee
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in its existing condition, however, Lessor shall provide an improvement
allowance, not to exceed $62,500.00, including all plans, permits and fees,
to be used to refurbish, alter and re-carpet the Premises, as necessary.
Lessor shall provide space planning services to be paid/reimbursed out of
the improvement allowance. Lessor and Lessee have, as of April 3, 1998,
seen and hereby approve of the space plan. Attached hereto as Exhibit "1"
is a contract and costs breakdown by Xxxxxx Construction, Inc. dated March
1, 1998, in the amount of $62,494.00, to be executed herewith by Lessor and
Lessee. Lessee hereby agrees to pay for any change orders requested by
Lessee and approved by both Lessee and Lessor, directly to Xxxxxx
Construction, Inc. Also, Lessee agrees to pay any additional costs
associated with exceptions #1 and #2 in Xxxxxx Construction, Inc.'s
contract. Now that the Xxxxxx Construction, Inc. contract has been
received, the lease contingency to determine that the improvement allowance
is adequate is hereby waived."
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LESSOR: FORTUNE FIFTY ASSOCIATES,
------ A CALIFORNIA CORPORATION
By: /S/ XXXXXXX X. XXXXXXXXXX
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Xxxxxxx X. Xxxxxxxxxx, General Partner
By: /S/ XXXX X. XXXXXXX
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Xxxx X. Xxxxxxx, General Partner
Dated:
LESSEE: EIS, INC.,
------ A CALIFORNIA CORPORATION
By: /S/ XXXXXX XXXXXXX
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Xxxxxx Xxxxxxx, Vice President
Dated:_____________________________________
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EXHIBIT "1"
Xxxxxx Construction
0000 Xxxx Xxxx Xx.
Xxxxxx, XX 00000
(000) 000-0000
lic. 458692
March 1, 1998
Mr. Xxxxx Xxxxxxx
Re: 00000 Xxx Xxxxxxxxxxx Xxxx, Xxx. 000
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We propose to complete the tenant improvements in above unit according to the
plans we have to date, and according to the breakdown sheet which will accompany
this proposal. The only variables I am aware of at this point are as follows:
1). We have allowed $2500 to cover the costs of the permits and the costs of
having the plans drawn and made ready for the county.
2). We have made provision for 30 new electrical circuits in the new sub panel,
but are only including in the price of the improvements 18 of those
circuits, which were given to us originally by Xxx. Because we do not know
the exact location of the remaining 5 circuits, they will be priced
directly to Xxx when they decide the exact locations.
By signing below, you are accepting this proposal in the amount of $62,494 for
the improvements to this space. A detailed list on the next page will, show you
a breakdown of the different areas and the amounts each of them as per bid.
/s/ XXXXX XXXXXXX 4/2/98 /s/ XXXXXX XXXXXXX 4/6/98
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Fortune Fifty Associates - Xxxxx Xxxxxxx EIS Inc. - Xxxxxx X. Xxxxxxx
/s/ XXXXXX XXXXXX 4/2/98
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Xxxxxx Construction Inc. - Xxxxxx Xxxxxx
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Xxxxxx Construction
0000 Xxxx Xxxx Xx.
Xxxxxx, XX 00000
(000) 000-0000
lic. 458692
March 1, 1998
BREAKDOWN STE. 130
14100 All new walls, sheetrock, tape and texturing
3350 HVAC ducting, venting
500 Demo work
750 T-bar ceiling in hallway, repair other ceilings
1375 Insulation
3650 Painting and staining
2400 Plumbing & countertop in bathroom
480 Cut out concrete for plumbing, haul away, repour
120 Marlite 2 walls in new bathroom
400 Vinyl flooring in new bathroom
200 Paper holders, mirror, signs, handicap bars
9350 Carpet, remove old carpet, new baseboard existing areas
2280 Carpet demo room (all carpet is 26 oz., will bring sample book)
2976 Doors, frames, including 1 pr 4' doors and 1-4' door from stock
1200 Door handles (levers)
510 Install doors, frames, levers
8890 Electrical including 100 amp subpanel from main, and 18 circuits
1212 Fire sprinklers
285 Dumpster
2500 Plans and permits (allowance)
285 Lift rental for ceiling work
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56,813 Sub total
5681 10% profit and overhead
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62,494 TOTALS
