Exhibit 10.8
 | |||
| International Business Machines Corporation | |||
| Hudson Valley Research Park | |||
2070 Route 52 Hopewell Junction, NY 12533-6531 |
Mr. Gary Jones
President and Chief Executive Officer
eMagin Corporation
Hudson Valley Research Park
2070 Route 52
| Hopewell Junction, NY 12533-6531 | May 28, 2002 |
Subject : Third Amendment to the Lease executed on May 28, 1999, between International Business Machines Corporation (IBM) and eMagin Corporation
Dear Mr. Jones:
This letter, upon your signed acceptance, amends the above referenced Lease between IBM and eMagin Corporation for space located at the Hudson Valley Research Park in Hopewell Junction, New York. The Lease shall be amended as follows:
Replace "EXHIBIT Al", dated 07-02-99 in its entirety with "EXHIBIT Al," effective date 06-01-02.
Replace "EXHIBIT A2', dated 01-15-99 in its entirety with "EXHIBIT A2," effective date 06-01-02.
Replace "EXHIBIT A3", dated 01-15-99 in its entirety with "EXHIBIT A3," effective date 06-01-02.
Replace "SCHEDULE A", dated 06-01-99 in its entirety with "SCHEDULE A" effective date 06-01-02.
Replace "SCHEDULE B", dated 06-01-99 in its entirety with "SCHEDULE Et" effective date 06-02-02.
Except as amended herein, all the terms and conditions of the Lease shall remain in full force and in effect. Please indicate your acceptance by signing two (2) copies of this letter and returning them to IBM for counter signature. Thank you.
Accepted and agreed to:
| INTERNATIONAL BUSINESS | eMagin CORPORATION | |||||
| MACHINES CORPORATION | ||||||
| By: | /s/ Raymond J. Wagner | By: | /s/ Gary Jones | |||
| Raymond J. Wagner | Gary Jones | |||||
| Senior Program Manager | President and Chief Executive Officer | |||||
| Date: | 06/05/02 | Date: | June 5, 2002 | |||
SCHEDULE A
eMagin CORPORATION
BASE RENT COMPUTATION SCHEDULE
| Effective 06/01/02 | |||||
| Space Type | Net Productive Sq. Ft. | This Amendment | Rate $/NPSF | Annual Base Rent | |
| Wet | 3004 | -3004 | $22.00 | $0.00 | |
| Dry | 7691 | 0 | $18.00 | $138,438.00 | |
| Office | 11209 | -1997 | $15.00 | $138,180.00 | |
| Clean | 16316 | 0 | $30.00 | $489,480.00 | |
| Storage | 9727 | 5001 | $5.00 | $73,640.00 | |
| Net Prod. Rent | |||||
| Total Sq. Ft. | 47,947.00 | 0 | $839,738.00 | $ per Year | |
| New Total Sq. Ft | 47,947.00 | ||||
| Amortized Loan Payment | $47,231.76 | ||||
$155,000 Fit-up cost at 18.0% at a 5 yr term7 ( See Schedule-E ) | $888,969.76 | Total Rent Charge | |||
| $73,914.15 | Rent $ per Mo. | ||||
| $18.50: | per Sq. Ft. per Yr. Avg. Rent | ||||
Deriving Net Rentable Basis
Building Number | Net Productive Sq. Ft. | NP to NR Factor | Net Rentable Sq. Ft. | Net Rentable Delta (Sq.Ft.) | |
| 310 | 10352 | 1.26 | 13043.52 | 2692 | |
| 320 | 0 | 1.27 | 0 | 0 | |
| 321 | 0 | 0 | 0 | ||
| 330 | 28991 | 1.26 | 36528.66 | 7538 | |
| 334 | 8604 | 1.47 | 12647.88 | 4044 | |
| 640 | 0 | 0 | 0 | ||
| Total | 47,947.00 | 62,220 | 14,273 |
| BOMA Formula for Net Productive to Net Rentable | Date 05/24/02 | |||
| Building Rentable | = Bulding Net Rentable | Example | 475000 | = 1.55 |
Building Net Productive | 308300 | |||
SCHEDULE B
eMagin CORPORATION
BASE RENT PAYMENT SCHEDULE
Effective Date
06/01/02
| 1999 | 2000 | 2001 | 2002 | 2003 | 2004 | |||
| January | $70,589.25 | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | ||
| February | $70,589.25 | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | ||
| March | $70,589.25 | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | ||
| April | $70,589.25 | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $0.00 | ||
| May | 1 | $70,589.25 | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $0.00 | |
| June | 1 | $71,308.31 | $79,833.98 | $79,833.98 | 2 | $73,914.15 | $73,914.15 | $0.00 |
| July | $71,308.31 | $79,833.98 | $79,833.98 | $73,914.15 | $73914.15 | $0.00 | ||
| Aug | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | $0.00 | ||
| September | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | $0.00 | ||
| October | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | $0.00 | ||
| November | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | $0.00 | ||
| December | $79,833.98 | $79,833.98 | $79,833.98 | $73,914.15 | $73,914.15 | $0.00 | ||
| Total | $894,732.77 | $958,007.76 | $958,007.76 | $916,568.93 | $886,969.76 | $221,742.44 |
Notes:
1. $8,525.67 Per Mo., credit for 6,254 S/F in B/310, under consturciotn & unabavaible7
2. Reclassified office and lab (5,000 s.f.) to storage space