ADDENDUM TO THAT LEASE
DATED MAY 21, 1998
The parties hereby amend that certain Lease, dated May 21, 0000, xxxxxxx
XXXXXXXX XXXXXXXXXX SUNBELT DEVELOPERS, INC. ("Landlord") and GEN-TEL
COMMUNICATIONS ("GTC"), A CALIFORNIA CORPORATION; XXXX XXXXXXX; AND XXXX XXXXXX,
JOINTLY AND SEVERALLY ("Tenant") for property located at 0000 Xxxxxx Xxxxxx,
XxxxxxX-0, X-0 AND X-0, Xxxxx Xxxx, Xxxxxxxxxx 00000 in the following respects:
WHEREAS, Tenant is presently the occupant of office space located at THE
XXXX XXXXX EXECUTIVE GUILD CENTER, 0000 Xxxxxx Xxxxxx, Xxxxx Xxxx, Xxxxxxxxxx
(the "Premises"), more specifically designated as SUITES L-2(MONTHLY BASE RENT:
$6,347.00), P-1 (MONTHLY BASE RENT: $6,434.12) AND P-3 (MONTHLY BASE RENT:
$5,869.27);
WHEREAS, the Term of Tenants occupancy of the Premises is scheduled to
expire on May 31, 2001; and
WHEREAS, Tenant desires to continue its occupancy of the Premises on a
month-to-month basis;
IT IS THEREFORE AGREED AND UNDERSTOOD THAT:
PRECONDITIONS
Tenant Improve-
ments: At Tenants request, Landlord has undertaken certain Tenant
Improvements, consisting of the repainting of a portion of the Premises,
installation of a wallpaper border, etc., as described in the accompanying
Tenant-approved invoice (EXHIBIT 1"), for a total cost of $3,426.58. Tenant
acknowledges that the expense of such Tenant Improvements is the sole
responsibility of Tenant, and Tenant hereby agrees to prompt payment of such
invoice as a precondition to the within Addendum to Lease (i.e., on or before
June 1, 2001), with the payment of the June, 2001 Base Rent in the sum of
$19,247.20, as set forth hereinbelow, for a June 1, 2001 total due of
$22,673.78.
Other Services Provided
by Landlord: The parties acknowledge that XXX X. XXXX, president of Landlord
corporation, SOUTHERN CALIFORNIA SUNBELT DEVELOPERS, INC., is also a
principal/officer of XXX XXXX & ASSOCIATES, a Sole Proprietorship. Tenant is
indebted to XXX XXXX & ASSOCIATES in the sum of $6,006.45 for additional
services, as more particularly described in the accompanying invoice (EXHIBIT
2"). Tenant acknowledges that such services have been provided and Tenant
hereby agrees to prompt payment of such invoice (i.e., on or before May 15,
2001) as a precondition to Landlords acceptance of this Addendum to Lease.
RECITALS
Term: The term of Tenants occupancy of the Premises is hereby extended
on a month-to-month basis, commencing June 1, 2001, and continuing on a
month-to-month basis for a maximum of one year, and subject to termination by
either party, upon a minimum of seventy-five (75) days written notice, one party
to the other.
Base
Rent: Paragraph 18.2 of the Lease Dated May 21, 1998 provides:
Payment of Operating Expenses. It is mutually agreed that the calculation of
the actual annual increase in the operating expenses, for each individual unit
of the Xxxx Xxxxx Executive Guild complex, is difficult, costly, and time
consuming. Therefore, whenever the base monthly rent provided for herein is to
be increased in response to changes in the Consumer Price Index, the Landlord
shall have the unilateral option to observe the following provisions. The
adjustment, if any, shall be calculated upon the basis of the United States
Department of Labor Statistics, Revised Consumer Price Index for SUBGROUP ALL
ITEMS - ALL URBAN CONSUMERS, Los Angeles - Anaheim - Riverside, 1982/1984 = 100
(Index). The index, published as of ninety (90) days prior to the commencement
date of the Lease shall be considered the "Base". The amounts to be adjusted
shall be increased by the percentage increase, if any, in the Index, as of
ninety (90) days prior to the adjustment date, over the "Base". Additional
adjustments will be made in the same manner, at the end of each ensuing twelve
(12) month period, including option periods, of the full lease term. The annual
adjustment in the C.P.I. shall be cumulative and will be added to each adjusted
amount on an annual basis. Said increase shall not exceed four percent (4%) per
annum nor be less than one percent (1%) per annum. For each subsequent
anniversary date of the Lease, Tenant's share of the annual increase in
operating expenses shall be calculated in like manner.
On the basis of a 3.2% increase in the CPI, as of March 1, 2001,
Tenants Monthly Base Rent shall be increased, as follows:
FROM TO INCREASE
Suite L-2: $ 6,347.00 $ 6,550.10 $ 203.10
Suite P-1: $ 6,434.12 $ 6,640.91 $ 205.89
Suite P-3: $ 5,869.27 $ 6,057.09 $ 187.82
TOTAL $ 18,650.39 $19,247.20 $ 596.81
Counter-
parts: This Addendum to Lease may be executed in counterparts, each of
which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.
EXCEPT AS MODIFIED HEREIN, ALL OTHER TERMS AND CONDITIONS OF THE LEASE BETWEEN
THE PARTIES ABOVE DESCRIBED, SHALL REMAIN UNCHANGED AND IN FULL FORCE AND
EFFECT.
EXECUTED at Orange County, California.
Landlord:
SOUTHERN CALIFORNIA SUNBELT DEVELOPERS, INC.
A CALIFORNIA CORPORATION
By: /s/ Xxx X. Xxxx
XXX X. XXXX, President Dated 5/7/01
Tenant:
GTC TELECOM
A Nevada corporation
By: /s/ S. Xxxx Xxxxxx
XXXX XXXXXX, President & CEO Dated 5/22/01
/s/ S. Xxxx Xxxxxx
XXXX XXXXXX Dated 5/22/01
/s/ Xxxx Xxxxxxx
XXXX XXXXXXX Dated 5/22/01
