Item
1.01. Entry into a Material Definitive Agreement.
On
February 1, 2007, CombiMatrix Corporation amended the Lease Agreement,
dated
October 19, 2000 (as amended May 1, 2002), with Wiredzone Property, L.P.,
a
Delaware limited partnership, for its offices in Mukilteo, Washington.
The
material terms of the amendment are as follows:
(a) Between
February 28, 2007 and April 30, 2007, CombiMatrix will reduce its office
space
from 90,111 square feet to 30,727 square feet;
(b) The
term
of lease is extended from October 31, 2008, to October 31, 2010. CombiMatrix
may
terminate the lease as of October 31, 2008 if notice is provided to the
Landlord
by July 31, 2008 and a fee is paid equal to the broker commissions paid
by
landlord for the amendment;
(c) Annual
base rent is reduced to a blended rate of approximately $12 per square
foot
effective February 1, 2008, increasing by 3% per year beyond October 31,
2008,
assuming CombiMatrix does not exercise its right to terminate;
(d)
CombiMatrix
will reduce its letter of credit from $1.5 million to $1.0 million, which
will
decline by $40,000 on March 1, 2007, and an additional $40,000 every month
thereafter until reduced to $300,000;
(e) CombiMatrix’s
right to renew the term for two additional periods, its right to expand
the
premises, and its right of first opportunity on additional space were
terminated.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.