|
EXHIBIT 10.3
FIRST AMENDMENT TO BUILDING LEASE AND
SUBLEASE
This Amendment is made as of June 25, 2008 between
CAPSTONE PF LLC, a Washington limited liability company (
"Landlord" ), and KORRY ELECTRONICS CO., a Delaware
corporation ( "Tenant" ).
RECITALS:
A. Landlord and Tenant entered into a Building Lease and
Sublease dated as of March 26, 2008, pursuant to which Tenant
agreed to lease from Landlord certain premises to be constructed by
Landlord as more particularly described in the Lease. Capitalized
terms used in this Amendment and not otherwise defined shall have
the meanings given to them in the Lease.
B. The obligations of Tenant under the Lease ARE guaranteed by
Esterline Technologies Corporation, a Delaware corporation (
"Guarantor" ), pursuant to a Guaranty of Lease dated as of
March 26, 2008 (the "Guaranty" ).
C. Landlord and Tenant have agreed to modify certain provisions
of the Lease, as provided below.
AGREEMENT:
For and in consideration of the mutual covenants in this
Amendment, and the mutual covenants in the Lease, Landlord and
Tenant agree as follows:
1. Building . Section 1.1 of the Lease is amended to
read in its entirety as follows:
The Building, having a foot print of approximately 211,000
square feet and consisting of manufacturing space and accessory
office space, including 52,000 square feet of mezzanine space for
accessory office, to be built on the Land in the approximate
location shown on the Preliminary Site Plan, in accordance with the
terms of the Workletter attached to this Lease as Exhibit D
(the "Workletter" ).
2. Minimum Rent . Section 4.2(a) of the Lease is
amended to read in its entirety as follows:
Commencing on the Commencement Date, Tenant shall pay to
Landlord at the address specified in Section 1.8 above or at
such other entity or address as may be specified by Landlord from
time to time, without notice, setoff or deduction whatsoever, as
fixed monthly minimum rent ("Minimum Rent") equal to the sum
of (A) the Base Rent payable from time to time pursuant to the
Ground Lease, which shall not be increased (except as expressly
provided in the Ground Lease) without Tenant’s prior written
consent, plus (B) the "Fixed Rent" (defined below). As
used in this Lease, the term "Fixed Rent" means (1) the
"Premises Cost" (defined below), (2) multiplied by an interest
rate equal to the greater of (A) eight and three quarters
percent (8.75%) per annum and (B) three hundred
seventy
-1-
five (375) basis points in excess of the
current average yield of thirty (30)-year U.S. Treasury Constant
Maturities (as published in Federal Reserve Statistical Release
H.15 [519]) (the "Index" ), to be determined based on
the Inde
| 
