Item 1.01 Entry Into a Material Definitive Agreement
On
? The rentable area of the leased premises will increase from 25,847 square feet to 52,184 square feet upon Landlord's completion of certain work to the leased premises. ? The lease term was extended fromApril 30, 2022 , to that certain date that is one hundred twenty-seven (127) months after the date the Landlord completes certain work to be done at the leased premises (the "Extension Term"). ? The minimum rental rates for the Extension Term are based on annual increases of approximately three percent (3%). Upon commencement of the Extension Term, the Company's proportionality share of operating expenses will increase to 53.58%. ? The monthly minimum rent due for the first two (2) months of the Extension Term will be abated, provided the Company is not in default under the terms of the Lease. If the Landlord elects to terminate the Lease or the Company's right of possession as a result of an uncured default by the Company, the unamortized amount of the abated rent will become due and payable. The aggregate amount of the monthly minimum rent abated during these two months equals approximately$132,634 . Prior to the commencement date of the Extension Term, the Company will continue to pay the current monthly minimum rent set forth under the terms of the Lease. If the Landlord has not completed its work to the leased premises byMay 1, 2022 , the monthly minimum rent will be approximately$32,847 (until such work is completed and the leased premises is expanded). ? The Landlord will provide the Company with temporary space consisting of approximately 8,285 square feet of space during the completion of the Landlord's work to the expanded premises. The Company will not be charged monthly minimum rent for the temporary space, but will be required to pay Landlord operating expenses andFlorida state sales tax thereon with respect to such space. ? There is one, 5-year extension option exercisable by the Company. The minimum rental rates for such additional extension option will be determined at the time an option is exercised and will be based on a "fair market rental rate" as determined in accordance with the Lease Amendment. ? The Company has a one-time right of first offer to lease additional space in the building that is contiguous to the leased premises, subject to the terms and conditions set forth in the Lease Amendment. The terms of the right of first offer will be based on the "fair market rental rate." Further, any right of first offer applies only with respect to the entire offered premises and may not be exercised with respect to only a portion thereof.
The additional space is intended, in part, to replace the 12,378 square feet
currently leased at
The foregoing description of the terms of the Lease Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Lease Amendment, a copy of which is attached hereto as Exhibit 10.1.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits Exhibit No. Description 99.1 Eighth Amendment to Lease dated as ofMay 12, 2021 , betweenLightPath Technologies, Inc. andChallenger Discovery LLC
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