EXHIBIT 99.1
FIRST AMENDMENT DATED FEBRUARY 17, 2005
The Lease dated July 3, 2002 between Xxxxx Xxxxx Technology Center, L.P., a
California Limited Partnership and MicroIslet, Inc., a Nevada Corporation, for
Suite #112 at 0000 Xxxxx Xxxxx Xxxxx, Xxx Xxxxx, Xxxxxxxxxx 00000 is hereby
amended as follows effective March 1, 2005 ("the Effective Date"):
1. PREMISES: On the Effective Date, the Premises shall be expanded to
include the approximately 2,000 square feet of front office in Suite
#111 at 6370 Xxxxx Xxxxx Drive. With this additional space, the
Premises shall be approximately 9,074 square feet, and Lessee's Share
shall be five point one percent (5.1%).
2. TENANT IMPROVEMENTS: Lessor shall construct two offices and a
conference room in the xxxxxxxx xxxxxx xx Xxxxx #000 per the attached
floorplan (with glass windows in the walls similar to those already in
suite #112). The cost of all the aforementioned improvements and any
related soft costs (e.g. permits and space planning) shall be amortized
over the remaining term of the Lease, and the Base Rent increased, per
Paragraph 5 below. Lessee shall have the right to review and approve
the tenant improvement contracts and costs.
3. BASE RENT: Commencing on the Effective Date, the monthly Base Rent
shall be the sum of: (a) $11,672.10 ($1.65 NNN psf on 7,074 sf), (b)
$1,580.00 ($.79 NNN psf on 2,000 sf), and (c) the cost of the tenant
improvements described in Paragraph 2 above (including but not limited
to any space planning and permitting fees) amortized over the remaining
Lease Term as extended by Paragraph 5 below, at an interest rate of 8%
per annum (e.g., if the total amount of such costs were $30,000 then
the Base Rent would be increased by $1,141.14/month).
4. INCREASES IN BASE RENT: The Base Rent shall increase four percent (4%)
on March 1, 2006 and every twelve (12) months thereafter, including the
option period described below.
5. EXPIRATION: The Lease Term shall be extended 29 months and the new
Expiration Date shall be February 28, 2008.
6. EXPANSION/TAKEDOWN OF WAREHOUSE SPACE: The approximately 2,955 square
feet of warehouse in Suite #111 is currently occupied by another tenant
on a month-to-month basis. Lessor agrees to terminate this existing
month-to-month warehouse tenancy upon receipt of notice from Lessee
indicating Lessee is ready to expand into the space. Effective the date
the existing month-to-month tenant vacates the warehouse space, and
regardless of whether the month-to-month tenant vacates at its own
initiative (i.e., without Lessor having delivered a notice to vacate)
or at Lessor's request following delivery of a notice to vacate, the
warehouse area of Suite #111 shall be added to Lessee's Premises and
Lessee's (a) Premises shall be approximately 12,029 square feet (b)
Lessee's Share shall be six point seven percent (6.7%), and (c) Base
Rent shall be increased by an amount equal to the approximately 2,955
square feet of warehouse/expansion space multiplied by: (i) $.79 if the
space is taken on or before February 2006, (ii) $.82 if taken between
March 1, 2006 and February 28, 2007, or (iii) $.85 if taken between
March 1, 2007 and February 28, 2008
7. TENANT IMPROVEMENTS IN WAREHOUSE SPACE: Lessee may request that tenant
improvements be made to the warehouse in Suite #111. If Lessor and
Lessee are able to come to agreement on the nature and cost of these
tenant improvements, and Lessee's financials are acceptable to Lessor,
then Lessor shall amortize the cost of these tenant improvements over
the remaining Term of the Lease at an interest rate
of 10% per annum, and the Base Rent shall be increased accordingly.
Lessee shall have the right to review and approve the tenant
improvement contracts and costs.
8. OPTION TO EXTEND: If (a) there have been no Lessee Defaults (whether
subsequently cured or not) under any of the terms of the Lease, and (b)
the Lessee Expansion/Takedown of Warehouse described in Paragraph 6
above occurs after March 1, 2007, and (c) on or before September 1,
2007, Lessee delivers to Lessor notice that Lessee elects to extend the
Term of the Lease, then the term of the Lease shall be extended for an
additional year (i.e., the Expiration Date would be February 28, 2009),
during which year the Base Rent shall be increased as provided in
Paragraph 4 above.
9. CONFIDENTIALITY: The terms of the Lease are confidential. No party to
the Lease, nor any broker, shall disclose any of the terms of the Lease
to any other party.
10. NO DEFAULTS: Neither Lessor nor Lessee is currently in Default of any
of the terms or conditions of the Lease
11. BROKERS: Lessor and Lessee each represent to the other that they have
dealt with no real estate agents, brokers, finders, or salesmen in
connection with this transaction. Each party agrees to hold the other
party harmless from and against all claims for brokerage commissions,
finder's fees or other compensation made by any agent, broker, finder
or salesman as a consequence of said party's actions or dealings with
such agent, broker, finder or salesman.
12. AUTHORITY TO EXECUTE: Each person executing this Amendment represents
and warrants to all parties that he or she is duly authorized to
execute and deliver this Amendment on behalf of that party.
All other terms and conditions of the original Lease shall remain in full force
and effect.
In witness hereof, the parties have caused these present to be executed as of
the day and the year first above written.
LESSOR: XXXXX XXXXX TECHNOLOGY CENTER, L.P., A CALIFORNIA LIMITED PARTNERSHIP
BY: XXXXX XXXXX TECHNOLOGY CENTER, L.L.C., A CALIFORNIA LIMITED LIABILITY
COMPANY,
BY: /s/ Xxxxx Xxxxxxxxxx
XXXXX XXXXXXXXXX, ITS MANAGER
DATE: 2/17/05
LESSEE: MICROISLET, INC., A NEVADA CORPORATION
BY: /s/ Xxxx Xxxxxxxxxx
TITLE: President and Chief Operating Officer
DATE: 2/17/05
