EXHIBIT 10.25.1


 


FIRST
AMENDMENT TO LEASE


 


This First Amendment to Lease (this “Agreement”),
made as of the 12th  day of August, 1999, between
Courthouse Square, LLC (“Lessor”), and Advanced TelCom Group, Inc. (“Lessee”).


 


W  I  T  N  E  S
S  E  T  H :


 


WHEREAS, Lessor and Lessee entered into that
certain Lease dated as of January 29, 1999 (the “Lease”), whereby Lessee
leased from Lessor certain premises (the “Premises”) in the building known as
19/23 Old Courthouse Square, Santa Rosa, California (the “Building”).


 


WHEREAS, Lessor and Lessee desire that the
Premises be expanded to include Suite 200 consisting of 2,600 renatble
square feet of space and Suite 220 consisting of approximately 1,034
rentable square feet of space (collectively, the “Expansion Premises”) and to
modify the Lease in certain other respects as hereinafter set forth.  The Expansion Premises are more particularly
described on the floor plan attached hereto as Exhibit A.


 


NOW THEREFORE, in consideration of the
foregoing and of the mutual covenants set forth below, Lessor and Lessee hereby
agree as follows:


 


1.             Unless
otherwise defined herein, all capitalized terms used herein shall have the
meanings ascribed to them in the Lease.


 


2.             Upon
the Expansion Commencement Date (as hereinafter defined), the Premises shall be
deemed to include the Expansion Premises.


 


3.             Lessor
shall deliver the Expansion Premises to Lessee upon execution by the parties of
this Agreement.  The term of the Lease
with respect to the Expansion Premises (the “Expansion Term”) shall commence on
the date by which Lessor delivers the Expansion Premises to Lessee in the
manner and in the condition required under Sections 2.2 and 2.3 of the Lease
(the “Expansion Commencement Date”).  The
Expansion Term shall expire on August 31, 2004.


 


4.             Base
Rent for the Expansion Premises shall be $.95 per rentable square foot per
month triple net (NNN) for years 1-3, $1.05 per rentable square foot for
year 4 and $1.05 plus CPI increase (not to exceed 3%) for year 5 of the initial
Expansion Term.


 


5.             Lessee’s
obligation to pay its pro rata share of insurance, taxes and other maintenance
expenses in accordance with the Lease shall be appropriately adjusted to
include Lessee’s pro rata share of such costs allocable to the second floor of
the Building.  The second floor consists
of a total of 7,291 rentable square feet of space.  Accordingly, Lessee’s pro rata share of the
second floor will be forty-nine and eight-tenths percent (49.8%).


 


6.             Lessee
shall have two (2) options to extend the Expansion Term, each for an
additional five (5) years at the same Base Rent per rentable square foot
payable under the


 





















 


Lease for the balance of the
Premises.


 


7.             Lessor
shall provide Lessee with a Tenant Improvement Allowance with respect to the
Expansion Premises in the amount of $15.00 per rentable square foot of the
Expansion Premises to be applied to the cost of Lessee’s improvements, any ADA
compliance on the second floor required by governmental authorities, and any
nonstructural floor work or repairs required in the Expansion Premises.  Lessor shall be responsible for making
structural repairs as set forth in the Lease. 
With respect to Lessee’s construction of improvements in the Expansion
Premises, Lessee shall be responsible for all coordination, design, permits and
construction of all work subject, however to such Tenant Improvement
Allowance.  Such Tenant Improvement
Allowance shall be payable as follows: (1) $5.00 per rentable square foot
of the Tenant Improvement Allowance shall be due upon execution hereof, (2) $5.00
per rentable square foot of the Tenant Improvement Allowance shall be paid upon
completion of $36,340 of work and (3) the balance of the Tenant
Improvement Allowance shall be due and payable upon completion of the initial
Lessee improvements in the Expansion Premises. 
Payments (2) and (3) of this Paragraph 7 shall be due and
payable within ten (10) business days after Lessee submits a demand
therefor which shall include a copy of an invoice(s) from Lessee’s contractor
evidencing the amounts due.  Any balance
not so paid in accordance with this Paragraph 7 shall accrue interest at ten
percent (10%).


 


8.             Lessor
shall pay brokerage commissions in connection with this Agreement in the amount
of Ten Thousand Seven Hundred Sixty-Six Dollars and 25/100 ($10,766.25) which
shall be split equally between Paul Schwartz of Orion Partners Ltd. and Joan
Rudolph of Coldwell Banker.


 


9.             Lessor
agrees that Lessee shall be entitled to the exclusive use of any additional
parking spaces that may from time to time become available during the Term of
the Lease at no additional cost to Lessee.


 


10.           Except as modified hereby, the Lease shall remain in full
force and effect, and as modified hereby, the Lease is ratified and confirmed
in all respects.


 


11.           This Agreement may not be orally changed or terminated,
nor any of its provisions waived, except by an agreement in writing signed by
the party against whom enforcement of any changes, termination or waiver is
sought.


 


12.           This Agreement shall be binding upon, and inure to the
benefit of the parties hereto, their respective legal representatives,
successors and assigns.


 


13.           Lessee acknowledges that this Agreement shall not be
binding on Lessor and Lessee until both parties shall have executed this
Agreement and a counterpart thereof shall have been delivered to Lessor and
Lessee.


 


14.           Lessee and Lessor each hereby represents and warrants that
it has full right, power and authority to enter into this Agreement and that
the person executing this Agreement on behalf of Lessee and Lessor,
respectively, is duly authorized to do so.


 


IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as


 


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of the day and year first above
written.


 


 


	
  LESSEE:

  	
  LESSOR:

  
	
   

  	
   

  
	
  ADVANCED TELCOM
  GROUP, INC.

  	
  COURTHOUSE
  SQUARE, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
    /s/
  C.G. Rudolph

  	
   

  	
  By:

  	
    /s/
  Frank Garza Jr.

  	
   

  
	
   

  	
  Name: C.G.
  Rudolph

  	
   

  	
  Name: Frank
  Garza Jr.

  
	
   

  	
  Title:
  Chairman & CEO

  	
   

  	
  Title:
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
						



 


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