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Quotes & Info
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| QTWW > SEC Filings for QTWW > Form 8-K on 24-Sep-2009 | All Recent SEC Filings |
24-Sep-2009
Entry into a Material Definitive Agreement
On September 18, 2009, the Registrant and Braden Court Associates ("Landlord") entered into a First Lease Amendment ("First Lease Amendment"), with an effective date of April 1, 2009, for certain real property located in Lake Forest, California, which amended the Lease Agreement previously disclosed by the Registrant in a Current Report on Form 8-K filed on December 17, 2007 ("Prior Filing"). As a result of the First Lease Amendment, the premises described in the Prior Filing as the "Must Take Premises" was removed from the Lease Agreement and, concurrent with the execution of the First Lease Amendment, the Registrant and Landlord executed a separate lease agreement for the Must Take Premises ("Must Take Lease") with an effective date of April 1, 2009.
The material terms of the First Lease Amendment include:
- The Must Take Premises was removed from the Lease Agreement.
- The Base Rent per month was reduced to the following amounts to adjust for the removal of the Must Take Premises:
Calendar Year Amount Per Month 4/1/09 through 12/31/09 $82,598 2010 $85,062 2011 $87,617 2012 $90,237 2013 $92,988 2014 $95,751 1/1/2015-5/31/2015 $98,651 |
- The Lease Agreement, as amended, contains a cross default provision to the Must Take Lease.
The material terms of the Must Take Lease include:
- The Base Rent per month is as follows:
Calendar Year Amount Per Month 4/1/09 through 12/31/09 $54,307 2010 $55,936 2011 $57,615 2012 $59,343 2013 $61,123 2014 $62,957 1/1/2015-5/31/2015 $64,846 |
- Payment of a portion of the monthly Base Rent is deferred until the earlier of
(i) May 31, 2010, (ii) the date the Registrant subleases all of the Must Take
Premises if such sublease has a term that expires after May 31, 2012, or (iii)
Registrant's breach of the Must Take Lease ("Deferral Period"). During the
Deferral Period, the amount of the deferred rent ("Deferred Rent") equals the
excess of (a) the Base Rent for the month over (b) the greater of (i) $27,000
and (ii) the amount of all sublease rents paid by a subtenant of the Must Take
Premises. Upon expiration of the Defferal Period, the Registrant must pay the
total Deferred Rent plus interest thereon at 8% per year.
- The Must Take Lease Agreement contains a cross default provision to the Lease Agreement, as amended.
- Registrant has the option to extend the term of the Lease Agreement for an additional 5 years.
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