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EXHIBIT 10.26
THIRD AMENDMENT TO LEASE
This Third Amendment to Lease is dated for reference purposes as of August 5,
1996 and is made a part of that Lease (the "Lease") dated May 28, 1991, by and
between Wells Fargo Bank, N.A., a California corporation, and Business Furniture
Solutions, Inc., a California corporation, dba Business Interiors ("Tenant"), as
amended, affecting certain real property commonly known as Suites 101, 102, 230
and 240, at 2150 North First Street, San Jose, California.
R E C I T A L S:
A. The parties hereto have previously amended the Lease by that First
Amendment to Lease dated for reference purposes as of December 21, 1993, and by
that Second Amendment to Lease dated November 15, 1995, which amendment, among
other things, added Suites 100, 102 and 240, terminated the lease of Suite 230
and extended the term of all their Leased Space to August 31, 2001.
B. The parties now desire to add certain additional space to the Premises
and to make certain additional provisions as more particularly set forth
hereinbelow. All capitalized terms in this Amendment which are not defined
herein shall have the meaning attributed to them in the Lease.
NOW, THEREFORE, in consideration of the mutual promises set forth herein,
the parties hereto agree as follows:
1. Additional Space. Suite 220 and a portion of Suite 210 (together to be
designated as Suite 220) within the Building, as shown on Exhibit "A-1",
attached hereto and incorporated herein by this reference, is hereby added to
the leased Premises, effective as of September 15, 1996:
Rentable
Suite No. Square Feet
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220 2364
As of September 15, 1996, the Tenant's total rentable square footage of
the entire Premises subject to the Lease, including the newly designated Suite
220, will be Twenty-One Thousand One Hundred Sixty-One (21,161) square feet.
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2. Base Monthly Rent. Commencing on September 15, 1996, and continuing
through January 31, 1999, Base Monthly Rent payable under the Lease by Tenant
for the Premises shall be as follows:
Monthly
Rentable Rental
Suite No. Square Feet Rate Rent
--------- ----------- ----- ----------
100 5,149 $1.60 $ 8,238.40
101 8,377 $1.60 $13,403.20
102 2,734 $1.60 $ 4,374.40
240 2,537 $1.48 $ 3,754.76
220 2,364 $1.58 $ 3735.12
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Total 21,161 $33,505.88
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On February 1, 1999, and on February 1, 2000, ( the "Adjustment Dates" )
the Tenant's Base Monthly Rent for the Premises in effect as of each Adjustment
Date shall be increased by the Consumer Price Index (as defined in Section 1.11
of the Lease) as compared with the Consumer Price Index in effect one year prior
to such Adjustment Date. In no event shall Base Monthly Rent be reduced by the
foregoing adjustments.
3. Security Deposit. On the execution hereof, Tenant's existing Security
Deposit in the amount of Twenty -Nine Thousand Seven Hundred Seventy Dollars
($29,770.00) shall be increased by Three Thousand Seven Hundred Thirty-Five
Dollars ($3735.00) to bring the total security Deposit to Thirty-Three Thousand
Five Hundred Five Dollars ($33,505.00) and held by Landlord pursuant to Section
3.5 of the Lease.
4. Adjustment of Tenant's Share. Effective September 15, 1996, Tenant's
Share of the Building shall be adjusted to Seventeen and Sixty-Three Hundredths
Percent (17.63%).
5. Tenant Improvement Allowance. Tenant is accepting the space in an "as
is" condition except that landlord will add a partition and remove a wall as
depicted in Exhibit "A-1". The cost of any other tenant improvements will be
paid for by the tenant. All requirements set forth in the Lease, including
without limitation the terms and provisions of article 5, regarding Tenant
improvements and alterations to the Building shall apply with respect to the
improvements and alterations being constructed by Tenant to any part of the
Premises. Without limiting the generality of the foregoing, Landlord and Tenant
agree that Tenant's general contractor and the plans and specifications for
Tenant's improvements and alterations (or any changes made thereto) shall have
been approved in writing by Landlord prior to commencement of any work related
thereto. additionally, prior to commencement of any such work, Tenant shall
obtain and furnish Landlord with a certificate of insurance providing contingent
liability and broad form
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builder's risk insurance in an amount of not less than Five Million Dollars
($5,000,000) and otherwise reasonably acceptable to Landlord.
6. Effectiveness. The effectiveness of this Amendment shall be conditioned
upon the execution by First Franklin Financial Corporation ("First Franklin") of
an Amendment to that certain Office Lease between Landlord and First Franklin
dated January 30, 1992, as amended, pursuant to which First Franklin shall
terminate such lease with respect to the expanded Suite 220 within the Building.
7. No Brokerage Commission. Tenant shall hold Landlord harmless form the
payment of any brokerage commissions related to this Amendment owing or claimed
to be owing to any brokers hired, consulted or otherwise involved herein.
IN WITNESS WHEREOF, Landlord and Tenant hereby agree to the foregoing
provisions and make them a part of the Lease.
LANDLORD:
2150 NORTH FIRST STREET PARTNERS,
California Limited partnership
By:
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Tito J. Bianchi
Its: General Partner
TENANT:
BUSINESS RESOURCE GROUP, INC.,
A California Corporation
By:
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