Marchex, Inc. (NASDAQ:MCHX) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement.
On June 27, 2017, Marchex, Inc., a Delaware corporation (the “Company” and “Marchex”) entered into Amendment No. 3 effective June 27, 2017 (the “Amendment No. 3”) to the Amended and Restated Lease with 520 Pike Street, Inc., a Delaware corporation (the “Landlord”), originally dated June 4, 2009 and as amended to date, with respect to the Company’s rental of office space in the 520 Pike Tower located at 520 Pike Street, Seattle, Washington.
Amendment No. 3 extends the terms of the lease for a period of eighty-four (84) months and provides for a new expiration date of March 31, 2025; provided, however, the Company has the option, subject to the satisfaction of certain conditions, including payment of a termination fee of approximately $671,000, to terminate the lease as of March 31, 2023. Amendment No. 3 also provides as of September 1, 2017 that the leased premises shall be reduced to 36,091 rentable square feet.
Under Amendment No. 3, the Company is obligated to pay fixed rent at the approximate annual rate as follows: (i) $1,150,000 from September 1, 2017 – March 31, 2018; (ii) $1,440,000 from April 1, 2018 – March 31, 2019 ; (iii) $1,490,000 from April 1, 2019 – March 31, 2020; (iv) $1,530,000 from April 1, 2020 to March 31, 2021; (v) $1,580,000 from April 1, 2021 – March 31, 2022; (vi) $1,620,000 from April 1, 2022 – March 31, 2023; (vii) $1,670,000 from April 1, 2023 – March 31, 2024; and (viii) $1,720,000 from April 1, 2024 – March 31, 2025.
Per the terms of Amendment No. 3, the parties agreed as follows: (i) Landlord shall pay a sum of up to approximately $902,000 toward the cost of further alterations to the leased premises, (ii) the Company previously provided a cash security deposit in the amount of approximately $144,000 which such amount shall be returned to the Company on or before the prior extension date of March 31, 2018 (the “Extension Date”), and (iii) effective on the Extension Date, the Company shall provide Landlord with a letter of credit in the amount of approximately $575,000 which will be reduced by $100,000 on each anniversary of March 31st commencing March 31, 2019.
The description of Amendment No. 3 set forth herein does not purport to be complete and is qualified in its entirety by reference to the full text thereof, a copy of which will be filed as an exhibit to the Company’s next applicable periodic report or registration statement.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.
About Marchex, Inc. (NASDAQ:MCHX)
Marchex, Inc. is an advertising analytics company. The Company offers products and services for enterprises that depend on consumer phone calls to drive sales. The Company’s media analytics products connect call data to media channels, including search and display – down to the campaign, keyword and impression. Its sales analytics products deliver actionable intelligence on the offline consumer journey to help prospects become customers. The Company’s product offerings include Marchex Call Analytics, Marchex Call Analytics for Search, Marchex Display Analytics, Marchex Call Marketplace and Local Leads. Marchex Call Analytics is an analytics platform for enterprises that depend on inbound phone calls to drive sales, appointments and reservations. Marchex Call Analytics for Search is a product for search marketers that drive phone calls from search campaigns. Marchex Display Analytics is a product for marketers that buy digital display advertising.