Exhibit 10.39
FOURTH LEASE AMENDMENT
The Lease dated September 27th, 1992 between the XXXXXX XXXXX TRUST and PHASE
THREE, INC. for the premises at 0000 XXXXXXXX XXXX is hereby modified as
follows:
SECTION 1.04, PROPERTY: The property now includes the entire property at 2701 and
0000 XxXxxxxx Xxxx, containing two buildings of
approximately 24,300 sq. ft.
SECTION 1.05, TERM: The term of the lease is hereby extended for the period
October 1, 2001 through May 31, 2007.
SECTION 1.11, VEHICLE PARKING: All parking contained in the subject premises shall be
included with the leased premises.
SECTION 1.12 (A), RENT & OTHER Base rent shall be $22,000/mo. Rent shall increase each
CHARGES year thereafter based upon the increase in the Consumer
Price Index. In no event will the annual increase be
less than 3% or more than 6%.
SECTION 1.12 (B), OTHER Tenant shall be responsible for 100% of all other
PERIODIC PAYMENTS: periodic payments required in the Lease.
SECTION 4.05: Provision providing that
Tenant employees may not use
the parking lot without
permission of the UPS is hereby
deleted.
OPTIONS TO RENEW: Tenant shall have two 3-year options to renew its Lease
at a rate to be negotiated. Renewal terms shall commence
June 1, 2007 and June 1, 2010. Tenant must advise
Landlord of its intention to exercise its option to renew
not later than December 1, 2006 for the first option, and
December 1, 2009 for the second renewal period. Rental
rate shall be negotiated between the parties to reflect
the then prevailing market rate. In the event the
parties are unable to negotiate an agreed rental rate by
February 1, 2007 for the first renewal period, and
February 1, 2010 for the second renewal period, the MAI
appraisal firm of Schenberger, Taylor, XxXxxxxxx &
Xxxxxx, or its successor firm, shall be retained by both
parties to set the rental rate. In the event
Schenberger, Taylor, XxXxxxxxx & Xxxxxx or its successor
firm no longer exists, the appraiser shall be an MAI
appraiser appointed by the presiding judge of San Xxxx
Obispo County, and the appraiser's primary place of
business shall be in San Luis Obispo, California. The
cost of the appraisal shall be paid equally by both
parties, and the rate set by the appraiser shall be
binding on both parties. Thereafter, for the remainder
of the term, the rent shall be adjusted annually per the
Consumer Price Index as provided earlier in this
memorandum.
IMPROVEMENT CONCESSION: Tenant shall be entitled to deduct $10,000 from its
rental obligation for the month of October, 2001, as a
credit for necessary cosmetic modifications to the
premises.
EXISTING TENANT: In the event that United Parcel Service remains a tenant
after September 30th, 2000 it shall be deemed a subtenant
of Phase Three, Inc. and Phase Three, Inc. shall be
entitled to any rents received from United Parcel Service.
All other terms and conditions of the original Lease shall remain the same.
PHASE THREE, INC.
By: /s/ Xxxxxx X. Xxxxxxx DATE: 5/23/01
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XXXXXX XXXXX TRUST
By: /s/ [Signature unreadable] DATE: 6/6/01
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