IBM
International Business Machines Corporation 2070 Route 52
Hopewell Junction, NY 12533
November 29, 2004
Mr. Gary W. Jones
President/CEO
eMagin Corporation
2070 Route 52
Hopewell Junction, NY 12533
Subject: Lease dated May 28, 1999, as amended by First Amendment to Lease dated
July 09, 1999, Second Amendment to Lease dated January 29, 2001, Third Amendment
to Lease dated May 28, 2002 between International Business Machines Corporation,
as Landlord, and eMagin Corporation, as Tenant, (collectively, the "Lease") for
the premises located at the Hudson Valley Research Park, 2070 Route 52, Hopewell
Junction, NY 12533, as such premises are more particularly described in the
Lease.
Fourth Amendment to Lease effective as of June 1, 2004
Dear Mr. Jones,
The letter, upon your signed acceptance, amends the above referenced Lease
between IBM and eMagin Corporation for the Premises located at the Hudson Valley
Research Park in Hopewell Junction, NY. The Lease shall be amended as follows
("Amendment 4") and shall be effective as of June 1, 2004:
Replace "Exhibit A1" dated 6-01-02 in its entirety with "Exhibit A1".
Replace "Exhibit A2" dated 6-01-02 in its entirety with "Exhibit A2".
Replace "Exhibit A3" dated 6-01-02 in its entirety with "Exhibit A3".
Replace "Exhibit B" dated 9-15-99 in its entirety with "Exhibit B".
Replace "Schedule A" dated 6-01-02 in its entirety with "Schedule A".
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Replace "Schedule B" dated 6-01-02 in its entirety with "Schedule B".
Replace "Schedule D" dated 6-01-99 in its entirety with "Schedule D".
Paragraph 4(a): Shall be amended by changing the expiration date from May 31,
2004 to May 31, 2009. The term of this Lease (herein called the "Term") shall be
for a period of five (5) years, to commence on June 1, 2004 (the "Commencement
Date"), and shall expire on May 31, 2009 unless sooner terminated as hereinafter
provided.
Paragraph 4(c): The first sentence shall be deleted in its entirety and replaced
with "After May 31, 2007 the Landlord at its sole discretion may grant the
Tenant an option to extend the Term for all or any part of the Premises for one
(1), two (2) year period subject to and upon the provisions set forth in this
subparagraph and subject to a Rent to be determined by the Landlord in its sole
discretion.
Paragraph 28 (a): The first sentence shall be deleted in it entirety and
replaced with "Commencing as of June 1, 2004 and continuing thereafter
throughout the Term the Landlord shall provide the Tenant with 3 (three)
reserved parking spaces and unreserved parking (the "Tenant's Parking Spaces")
as outlined on EXHIBIT B.
Paragraph 35, Security Deposit shall be added to the Lease as follows:
(a) The Tenant has deposited with the Landlord the sum of One Hundred Fifty
Thousand and 00/100 Dollars ($150,000.00) as security for the faithful
performance and observance by the Tenant of the provisions of this Lease on its
part to be performed. If the Tenant defaults in respect of any of these
provisions, including the payment of rent, the Landlord may use, apply or retain
the whole or any part of the security so deposited to the extent required for
the payment of any rent for which the Tenant is in default or for any sum which
the Landlord may expend or may be required to expend by reason of the Tenant's
default in respect of any of these provisions, including any damages or
deficiency in the reletting of the Premises, whether such damages or deficiency
accrued before or after summary proceedings or other reentry by the Landlord. If
the Tenant shall fully and faithfully comply with all provisions of this Lease
on the Tenant's part to be performed, the security shall be credited toward the
payment of rent as described in paragraph (b) hereof. If the Landlord sells or
leases the Building, the Landlord shall have the right to transfer the security
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to the vendee or lessee and the Landlord shall thereupon be released by the
Tenant from all liability for the return of such security. The Tenant agrees to
look solely to the new landlord for the return of said security. It is agreed
that the provisions hereof shall apply to every transfer or assignment made of
the security to a new landlord. The Tenant further covenants that it will not
assign, pledge or encumber or attempt to assign, pledge or encumber the monies
deposited herein as security and that neither the Landlord nor its successors or
assigns shall be bound by any such assignment, pledge or encumbrance, or
attempted assignment, attempted pledge or attempted encumbrance.
(b) If Tenant is not in Default on March 31, 2009 the security deposit will be
credited toward the April 1, 2009 and May 1, 2009 rent payments as shown in
Schedule A, Table 1.
Paragraph 36, Use of Rec Center shall be added to the Lease as follows:
A maximum of four (4) of Tenant's employees will be authorized access to the
Landlord's Rec Center located on Schenandoah Road, Hopewell Junction, NY, for
the sole purpose of use of the parking, locker rooms, exercise rooms, running
track, basketball, tennis courts and common areas. Tenant's employees are not
authorized to participate in any other activities or sports organized by the
Landlord or its employees, guests or invitees.
Please indicate eMagin's acceptance of this Fourth Amendment to Lease by
having an authorized representative sign four (4) copies of this letter on
behalf of eMagin and return two (2) copies to IBM, Route 100, Somers, NY 10589,
Attention: Program Manager, Real Estate Services.
Except as amended herein of this Fourth Amendment to Lease, all the terms
and conditions of the Lease shall remain in full force and effect.
Persons signing below certify that they are authorized representatives of
their company and empowered to execute this document on behalf of their company.
Very truly yours,
INTERNATIONAL BUSINESS MACHINES CORPORATION
David W. Pfirman
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Senior Program Manager, Real Estate Operations
Accepted and Agreed to:
eMagin Corporation
_______________________________ Date __________
Gary W. Jones
President/CEO
cc: Mr. Sujit Ramchand, IBM Area Counsel
Ms. Maureen Duffy, IBM General Counsel, Real Estate Services
Ms. Debra Durstewitz, Site Operations, East Fishkill
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IBM
- --------------------------------------------------------------------------------
International Business Machines Corporation 2070 Route 52
Hopewell Junction, NY 12533
December 16, 2004
Mr. Gary W. Jones
President/CEO
eMagin Corporation
2070 Route 52
Hopewell Junction, NY 12533
Subject: Lease dated May 28, 1999, as amended by First Amendment to Lease dated
July 09, 1999, Second Amendment to Lease dated January 29, 2001, Third Amendment
to Lease dated May 28, 2002 , Fourth Amendment to Lease effective June 1, 2004
between International Business Machines Corporation, as Landlord, and eMagin
Corporation, as Tenant, (collectively, the "Lease") for the premises located at
the Hudson Valley Research Park, 2070 Route 52, Hopewell Junction, NY 12533, as
such premises are more particularly described in the Lease.
Dear Mr. Jones,
Please replace "Schedule B" in Amendment 4 dated November 29, 2004 with the
attached "Schedule B" dated December 16, 2004 in which the negotiated base rent
payment schedule shown in Table 1 is correctly shown in Table 2.
Persons signing below certify that they are authorized representatives of
their company and empowered to execute this document on behalf of their company.
Very truly yours,
INTERNATIONAL BUSINESS MACHINES CORPORATION
David W. Pfirman
Senior Program Manager, Real Estate Operations
Accepted and Agreed to:
eMagin Corporation
_______________________________ Date __________
Gary W. Jones
President/CEO
cc:
Mr. Sujit Ramchand, IBM Area Counsel
Ms. Maureen Duffy, IBM General Counsel, Real Estate Services
Ms. Debra Durstewitz, Site Operations, East Fishkill
5
SCHEDULE A
eMagin CORPORATION
Effective Date
BASE RENT COMPUTATION SCHEDULE-- AMEND. 4 06/01/2004
Amend. 3 Amend. 4
Effective Date June 1, 2002 June 1, 2004
NPSF NPSF Rate/SF Annual Rent Monthly Rent
- ----------------------------------------------------------------------------------------------------------------------------------
B310 Storage 10,352 5688 $7.00 $39,816.00 $3,318.00
- ----------------------------------------------------------------------------------------------------------------------------------
B334 Office 8,604 8,604 $17.00 $146,268.00 $12,189.00
- ----------------------------------------------------------------------------------------------------------------------------------
B330C Office 608 608 $17.00 $10,336.00 $861.33
- ----------------------------------------------------------------------------------------------------------------------------------
Dry 7,691 7,691 $18.00 $138,438.00 $11,536.50
- ----------------------------------------------------------------------------------------------------------------------------------
Clean 16,316 16,316 $35.00 $571,060.00 $47,588.33
- ----------------------------------------------------------------------------------------------------------------------------------
Storage 4,376 4,376 $7.00 $30,632.00 $2,552.67
- ----------------------------------------------------------------------------------------------------------------------------------
Total 47,947 43,283 $936,550.00 $78,045.83
Average Rent/NPSF $21.64
Average Rent/NRSF $15.45
December 1, 2004
- ----------------------------------------------------------------------------------------------------------------------------------
B310 Storage 0 $7.00 $0.00 $0.00
- ----------------------------------------------------------------------------------------------------------------------------------
B334 Office 6,554 $17.00 $111,418.00 $9,284.83
- ----------------------------------------------------------------------------------------------------------------------------------
B330C Office 1,606 $17.00 $27,302.00 $2,275.17
- ----------------------------------------------------------------------------------------------------------------------------------
Dry 5,850 $18.00 $105,300.00 $8,775.00
- ----------------------------------------------------------------------------------------------------------------------------------
Clean 16,316 $35.00 $571,060.00 $47,588.33
- ----------------------------------------------------------------------------------------------------------------------------------
Storage 6,524 $7.00 $45,668.00 $3,805.67
- ----------------------------------------------------------------------------------------------------------------------------------
Total 36,850 $860,748.00 $71,729.00
Average Rent/NPSF $23.36
Average Rent/NRSF $16.30 $1.03
$0.23
Deriving Net Rentable Basis
Building Net Productive NP to NR Factor Net Rentable Net Productive Net Rentable
Number Sq. Ft. Sq. Ft. Sq. Ft. Sq. Ft.
June 1, 2004 June 1, 04 Dec. 1, 2004 Dec 1, 04
- --------------------------------------------------------------------------------------------------------------------------------
310 5,688 1.26 7,167 0
- --------------------------------------------------------------------------------------------------------------------------------
330 8,604 1.26 10,841 6,554 8,258
- --------------------------------------------------------------------------------------------------------------------------------
334 28,991 1.47 42,617 30,296 44,535
- --------------------------------------------------------------------------------------------------------------------------------
Total 43,283 60,625 36,850 52,793
- --------------------------------------------------------------------------------------------------------------------------------
BOMA Formula for Net Productive to Net Rentable
Building Rentable Example 475000
----------------------- = Building Net Rentable ------------------- = 1.55
Building Net Productive 306300
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SCHEDULE B
eMagin CORPORATION Date 12/16/04
BASE RENT COMPUTATION SCHEDULE-- AMEND. 4 Effective Date Lease End Date
Table 1 06/01/2004 May 31, 2009
- ----------------------------------------------------------------------------------------------------------------------------------
2004 2005 2006 2007 2008 2009
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
January $73,914.15 $71,729.00 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
February $73,914.15 $71,729.00 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
March $73,914.15 $71,729.00 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
April $0.00 $71,729.00 $73,880.87 $76,097.30 $78,380.21 $11,463.24
- ----------------------------------------------------------------------------------------------------------------------------------
May $0.00 $71,729.00 $73,880.87 $76,097.30 $78,380.21 $0.00
- ----------------------------------------------------------------------------------------------------------------------------------
June 4 $78,045.83 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
July $78,045.83 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
Aug $78,045.83 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
September $75,860.68 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
October $75,860.68 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
November $69,987.17 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
December $71,729.00 $73,880.87 $76,097.30 $78,380.21 $80,731.62
- ----------------------------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------------------------
Total $749,317.47 $875,811.09 $902,085.42 $929,147.99 $957,022.42 $253,658.10
- ----------------------------------------------------------------------------------------------------------------------------------
Notes: Amendments
1 May 1999 $8,525.67 Per Mo. credit for 6,254 S/F in B/310,
under construction & unavailable
2 June 2001 Reclassified office and lab (5,000 s.f.) to
storage space
3 May 2002 Space Givebacks in Bldgs. 310, 330C
4 June 2004 Space Givebacks in Bldgs. 310, 330C and B334, 5
year renewal with initial increase
3% per year thereafter effective June 1.
At IBM's sole discretion two, (2) year renewal options
will be offered after the 3rd year at the same terms.
7
2004 Payment Reconciliation
Table 2
--------------------------------------------------------------------------------------------------
2004 Loan Total Rent Delta
- -----------------------------------------------------------------------------------------------------------------------
Base Rent Amoritization Due Total Payments (due IBM) due eMagin
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
January $69,978.17 $3,935.98 $73,914.15 $73,914.15 $0.00
- -----------------------------------------------------------------------------------------------------------------------
February $69,978.17 $3,935.98 $73,914.15 $73,914.15 $0.00
- -----------------------------------------------------------------------------------------------------------------------
March $73,914.15 $0.00 $73,914.15 $73,914.15 $0.00
- -----------------------------------------------------------------------------------------------------------------------
April $0.00 $0.00 $0.00 $73,914.15 $73,914.15
- -----------------------------------------------------------------------------------------------------------------------
May $0.00 $0.00 $0.00 $73,914.15 $73,914.15
- -----------------------------------------------------------------------------------------------------------------------
June $78,045.83 $0.00 $78,045.83 $73,914.15 -$4,131.68
- -----------------------------------------------------------------------------------------------------------------------
July $78,045.83 $0.00 $78,045.83 $73,914.15 -$4,131.68
- -----------------------------------------------------------------------------------------------------------------------
Aug $78,045.83 $0.00 $78,045.83 $73,914.15 -$4,131.68
- -----------------------------------------------------------------------------------------------------------------------
September $75,860.68 $0.00 $75,860.68 $71,729.00 -$4,131.68
- -----------------------------------------------------------------------------------------------------------------------
October $75,860.68 $0.00 $75,860.68 $71,729.00 -$4,131.68
- -----------------------------------------------------------------------------------------------------------------------
November $69,987.17 $0.00 $69,987.17 $69,978.15 -$9.02
- -----------------------------------------------------------------------------------------------------------------------
Subtotal Due eMagin $127,160.85
- -----------------------------------------------------------------------------------------------------------------------
Security Deposit -$150,000.00
- -----------------------------------------------------------------------------------------------------------------------
December $71,729.00 $0.00 $71,729.00 $69,978.15 -$1,750.85
- -----------------------------------------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------------------------------------
Total $741,445.51 $7,871.96 $749,317.47 $874,727.47 -$24,590.00
SCHEDULE D
eMagin CORPORATION
Computed Utilities Schedule
Effective Date 6/1/04
Maximum Available Capacities
Utilities Peak Allowable Usage Total Annual Allowable
- ---------------------------- -------------------- ----------------------
Electricity N/A
Chilled Water 350Tons 1,401,600 Ton-Hrs
Low Temp Chilled Water 130Tons 569,400 Ton-Hrs
High Temp Hot Water 5MBH 19,25 1M MBTU
Deionized Water 30gpm 13,220 1K Gal
Compressed Air 10scfm 550,000 SCF
UHP Nitrogen scfm 6,000,000 SCF
Std. Oxygen scfm 100,000 SCF
Std. Argon scfm 100,000 SCF
Std. Forming Gas 15scfm 150,000 SCF
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BUILDING DIAGRAM OMITTED
Buliding 310
Hudson Vally Research Park eMagin Corp
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BUILDING DIAGRAM OMITTED
Buliding 334
Hudson Vally Research Park eMagin Corp
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BUILDING DIAGRAM OMITTED
Buliding 330C
Hudson Vally Research Park eMagin Corp
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SITE PARKING DIAGRAM OMITTED
HVRP Site Parking Plan
Hudson Vally Research Park Exhibit B
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