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Exhibit 10.19
FIRST AMENDMENT TO STANDARD INDUSTRIAL/COMMERCIAL
SINGLE-TENANT LEASE - NET
BY AND BETWEEN SIERRA PRECISION, INC. (LESSEE)
AND CAPELLINO/GALLEANO (LESSOR)
DATED JULY 11, 2000
The following paragraphs of the Addendum To Standard Industrial/Commercial
Single-Tenant Lease - Net By and Between Sierra Precision, Inc. (Lessee) and
Capellino/Galleano (Lessor) Dated June 7, 1999 shall be amended and revised to
read as follows:
Paragraph 50. LEASE COMMENCEMENT DATE
The Lease term "Commencement Date" shall be the date Lessor completes
the building shell and all related tenant improvements which are the
responsibility of the Lessor and upon Lessor obtaining a building completion
notice and building occupancy permit from the City of Rancho Cucamonga. Said
"Commencement Date" will be January 1, 2001. If the Commencement Date is later
than January 1, 2001, then Lessee shall have the right to be compensated after a
thirty (30) day a grace period in accordance with Paragraph 54 - Delay in
Possession which is part of this First Amendment. The lease term shall end Ten
(10) Years from the "Commencement Date".
Paragraph 51. BASE RENT
No revision or amendment made.
Paragraph 52. ADVANCE MONIES
Upon execution of the Lease Agreement, Lessee paid Lessor first
month's rent of $18,010.00 in accordance with Paragraph 1.6 of
the Lease. In accordance with the letter dated July 1, 1999
between Lessee and Lessor, it was agreed to by both Lessee and
Lessor that the Security Deposit of $22,315.00 per Paragraph 1.7
of the Lease Agreement, would be paid by Lessee to Lessor prior
to Lessee taking occupancy of the building to be constructed.
Paragraph 53. TENANT IMPROVEMENTS
Lessor shall be responsible for the cost of all permits, fees, license
costs, and insurance costs associated with the development of the subject
building. Lessor shall construct all interior and exterior improvements in
accordance with Lessee's design per "Exhibit B" which is the most current
building site plan, floor plan, and building elevations dated 5-23-00 and
initialed by Lessee and Lessor and attached hereto. Lessor shall review all
architectural drawings and plans and any subsequent modifications of the same
with Lessee and obtain Lessee's approval prior to the commencement of any
construction. The base building improvements shall include:
- Concrete tilt-up construction
- 800 amps, combination of both 120/208 and 277/480
voltage, 3 phase, 4 wire electrical power
- Steel interior columns
- 48' x 48' minimum bay spacing
- 100% of building interior drop ceiling with HVAC and 14'
ceiling clearance
- 5" sealed concrete floor
- 3 grade level roll-up doors
- .45 GPM/3,000 SF calculated fire sprinkler system
- Painted interior warehouse walls
- Steel truss roof structure
- Sealed and/or painted warehouse floors
- A 15 year 3-ply roof
- Approximately 80 parking spaces
- Fee simple lot
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Lessee is responsible for the cost of installation and
distribution of all mechanical, electrical, and air distribution
systems to service Lessee's specific equipment needs from either
the electrical sub-panels or air compressors which are to be
strategically located at certain points in the subject building
by Lessor, at Lessor's cost. An estimate of the costs of these
tenant improvements to be borne by Lessee has been provided to
Lessee by Lessor in a letter dated May 24, 2000 and is hereby
attached to this First Amendment. The coordination of these
tenant improvements required by Lessee shall be overseen and
coordinated by Lessor during the course of the building
construction and the costs of this work shall be passed on to
Lessee with no mark-up or profit to Lessor.
Paragraph 54. DELAY IN POSSESSION
Lessor agrees to use its best commercially reasonable efforts to
deliver possession of Premises to Lessee by the Commencement
Date. Lessee shall not be obligated to pay rent or perform its
other duties and obligations until possession is delivered. In
light of the fact that the original Commencement Date of this
Lease was estimated to by July 1, 2000 and Lessor was not able
to meet this date within a reasonable time period, Lessor hereby
agrees to bear the cost of Lessee's holdover rent penalty for
Lessee's current facility until such time as the conditions of
the above Paragraph 50 - Lease Commencement Date are fulfilled.
The estimated cost of the holdover rent penalty are
approximately $4,158.00 per month commencing August 1, 2000.
Lessor shall pay lessee the holdover penalty amount three (3)
business days in advance of the first day of each month
commencing August 1, 2000 to allow Lessee adequate time to
reissue a check to their existing Landlord for said holdover
rent penalty. Accordingly, if this holdover rent penalty is not
received by Lessee from Lessor when it id due, then the
provisions of Paragraph 13.4 and 13.5 which are "Late Charges"
and "Interest" respectively of the Standard
Industrial/Commercial Single-Tenant Lease-Net dated June 7, 1999
shall apply to the Lessor. Lessor shall also be responsible for
any costs Lessee shall incur, as a result of eviction
proceedings legal cost, etc., that may be incurred by Lessee due
to their holding over in their current facility beyond July 31,
2000. Any such costs incurred shall be reimbursed by Lessor to
Lessee in a timely manner upon Lessee providing Lessor written
documentation of such costs. Lessor shall have a thirty (30) day
grace period from January 1, 2001, the Commencement Date, to
complete the premises without penalty. At the end of said grace
period, Lessor shall pay Lessee $500.00 per calendar day for
each extra day of construction and non-completion past the
thirty (30) day grace period. Such penalty does not apply to
days of delay caused by the acts or omissions of the Lessee.
LESSOR: LESSEE:
Capellino/Galleano Sierra Precision, Inc.
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Richard J. Capellino Thomas J. Bell - President
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Date Date
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James B. Hawkins - Secretary
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Date
