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| NTAP > SEC Filings for NTAP > Form 8-K on 5-Dec-2008 | All Recent SEC Filings |
5-Dec-2008
Termination of a Material Definitive Agreement, Triggering Events That Accelerate or
On December 1, 2008, NetApp Inc. (the "Company") terminated its existing financing, construction and leasing arrangement, dated as of February 1, 2008, as amended on April 9, 2008 (such arrangement, the "Synthetic Lease"), relating to a $48,950,000 financing, construction and leasing agreement with BNP Paribas Leasing Corporation ("BNPPLC") for a building located in Sunnyvale, California.
Under the terms of the transaction documents, the Company had agreed to lease its land to BNPPLC for a period of 99 years, as the construction manager for BNPPLC, to complete construction of an office building by approximately January 2010, and to lease the completed building from BNPPLC for a term expiring in February 2015.
In light of the current economic environment and the Company's focus on managing expenses, on December 1, 2008, the Company terminated the Synthetic Lease and repaid approximately $8,080,000 of the outstanding balance drawn under the construction allowance related thereto. No early termination penalties were incurred by the Company as a result of this termination.
In connection with this termination, the Company's future real estate lease payments as disclosed in the Contractual Obligations within Item 2. Management's Discussion and Analysis of the Company's Quarterly Report on Form 10-Q for the quarterly period ended October 24, 2008, as filed on December 3, 2008, will be reduced by a total of approximately $52,793,000 for the 5-year lease period beginning January 2010 through January 2015.
The foregoing description of the termination agreement does not purport to be complete and is qualified in its entirety by the terms and conditions of the Agreement Concerning Ground Lease, which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q for period ending January 23, 2009.
The disclosure provided in Item 1.02 "Termination of a Material Definitive Agreement" is incorporated by reference into this Item 2.04 as if fully set forth herein.
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