Exhibit 10.4
THIRD AMENDMENT TO LEASE
This Amendment to Lease is made by and between Uenaka Family Partnership, a
California general partnership ("Lessor") and KAL Equity Group, Ltd., a Nevada
corporation ("Lessee") on the 5th day of September 2003.
WHEREAS, Lessee entered into a lease for office space dated March 19, 2001,
subsequently amended by the First Amendment to Lease and the Second Amendment to
Lease, (together known herein as the "Lease") for that certain office space
commonly known as Xxxxx 000, 00 Xxxxx Xxxxxx, Xxx Xxxxx, Xxxxxxxxxx 00000; and
WHEREAS, Lessee and Lessor wish to change Lessee's premises, extend the Lease,
and make certain tenant improvements; and
WHEREAS, Lessee and Lessor wish to amend the Lease effective as of October I,
2003; and
WHEREAS, all provisions of the Lease are hereby confirmed as stated, except as
specifically modified in the numbered paragraphs below.
NOW, THEREFORE, Lessee and Lessor agree to the following provisions of this
Third Amendment:
1) Premises Defined: Lessee shall lease from Lessor and Lessor shall lease to
Lessee the 3,121 rentable square feet on the second floor of the building
noted on Exhibit A and commonly known as suite 240 (hereinafter "Suite 240
Premises"). The 1,057 rentable square feet on the first floor of the
building and commonly known as suite 120 shall be referred to as the Suite
120 Premises. Upon the completion of Lessee's vacation from the Suite 120
Premises (see paragraph 2 below), Lessee shall lease from Lessor 5,199
rentable square feet at 00 Xxxxx Xxxxxx consisting of 3,121 rentable square
feet within the Suite 240 Premises and 2,078 rentable square feet within
suite 200 (hereinafter "Suite 200 Premises"). The Suite 200 Premises and
the Suite 240 Premises are hereinafter known as the Premises.
2) Vacation from Suite 120: Lessee shall release its lease on the Suite 120
Premises in accordance with this paragraph. Lessee shall, no later than 2
p.m. on October 2, 2003: (a) remove all its personal property from Suite
120 Premises; (b) vacate Suite 120 Premises; and (c) conduct a walk-through
move-out inspection by appointment with Lessor's agent, Portfolio Realty
Management, Inc. and remit all keys to Suite 120 Premises after (a) and (b)
above are completed (but no later than 2 p.m. on October 2, 2003). No
improvements made by Lessee within Suite 120 Premises shall be removed by
Lessee. Otherwise, the standards of normal wear and tear shall apply.
Lessee shall not owe any rent beyond September 30, 2003 for Suite 120
Premises should it comply with all of the above provisions of this
paragraph. However, should Lessee holdover within Suite 120 Premises for
any reason beyond October 2, 2003, then Lessee shall owe rent on a per diem
basis from October 1, 2003.
3) Term: The term for the Lease as amended by this Third Amendment to Lease
shall begin on October 1, 2003 and shall expire on September 30, 2009.
4) Rent: The Base Rent per month due for the Premises shall be in accordance
with the following schedule - Time Period Amount/Mo.
October 1, 2003 - December 31, 2003 $ 12,226.50
January 1, 2004 - February 29, 2004 $ 13,517.40
March 1, 2004 - March 31, 2004 $ 14,817.15
April 1, 2004 - March 31, 2005 $ 16,168.89
April /, 2005 - March 31, 2006 $ 16,815.65
April 1, 2006 - March 31, 2007 $ 17,488.27
April 1, 2007 - March 31, 2008 $ 18,187.80
April 1, 2008 - March 31, 2009 $ 18,915.31
April 1, 2009 - September 30, 2009 $ 19,671.93
PORTFOLIO REALTY MANAGEMENT, INC.
408/556-0200
Page 1 of 2
5) Tenant Improvements by Lessor: Lessor agrees to install at Lessor's sole
cost and expense only the following improvements within Suite 240 Premises,
prior to October 1, 2003 except as noted
(a) Window Blinds: Lessor shall remove the draperies as they exist in the
Suite 240 Premises and shall cover each exterior window with
mini-blinds to reasonably match those found within the Suite 200
Premises. Lessor shall have all the draperies removed by September 30,
2003, but may have until October 3, 2003 to install the mini-blinds.
(b) Interior Room: Lessor shall construct a room (walls to the ceiling)
with a door containing a lockset within Suite 240 Premises using
materials and colors that reasonably match the existing improvements
within Suite 240 Premises at the location approximately noted within
Exhibit A attached. Lessor may position the new walls so that costs of
relocating ceiling lights, fire sprinkler heads and HVAC grills are
minimized. Should Lessor need to locate the new walls more than one (1)
foot from the locations as shown within Exhibit A, Lessor shall first
obtain the permission of Lessee, which shall not be unreasonably
withheld. Lessor shall have all the framing, electrical and wallboard
installed by September 30, 2003, but may have until October 3, 2003 to
hang the door and to do finish painting. Lessor shall provide Lessee
with two (2) keys to this room. Lessor shall retain one (1) key in
Lessor's key filing system. Whenever Lessee elects to lock this room,
the janitorial service will not service this room.
(c) Keys: Lessor shall re-key Suite 240 Premises to match Lessee's keys to
Suite 200 Premises. No copies of keys shall be provided.
6) Security Deposit: Lessee's security deposit is hereby confirmed to be
$10,500.
The captions or headings of the above paragraphs are meant for convenience only
and are otherwise not part of the Lease as amended. The portions of the
paragraphs of similar names in the Lease not modified by this Third Amendment
are specifically retained by the parties.
The Lease as modified by this Third Amendment is the entire agreement between
the parties. All other discussions and negotiations are superseded by the Lease
as modified by this Third Amendment.
IN WITNESS WHEREOF, the parties to this Third Amendment have executed this Third
Amendment as of the dates indicated below.
LESSEE:
KAL Equity Group, Ltd.
/s/ Xxx Xxxx 10/18/01
------------------------------ --------
Xxx X. Xxxx, President (dated)
LESSOR:
Uenaka Family Partnership
/s/ Xxxxx Xxxxxx 10/18/01
------------------------------ --------
Its Uenaka, General Partner (dated)
PORTFOLIO REALTY MANAGEMENT, INC.
408/556-0200
Page 2 of 2
EXHIBIT X
XXXXX XXXX
Xxxxx 000, Xxxxxx Xxxxx
00 Xxxxx Xxxxxx Xxxxxxxx, Xxx Xxxxx, Xxxxxxxxxx
All dimensions approximate; scale approximately 1/8 inch = I foot.
[GRAPHIC OMITTED]
Initial ___________
