OPTEX SYSTEMS HOLDINGS, INC. (OTCMKTS:OPXS) Files An 8-K Entry into a Material Definitive Agreement

OPTEX SYSTEMS HOLDINGS, INC. (OTCMKTS:OPXS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01         Material Definitive Contract

 

The premises for the business unit which we acquired from L-3 Communications, Inc., the Applied Optics Center, in November 2014 consists of approximately 56,633 square feet of space. On November 17, 2016, we received a countersigned new lease from the landlord, dated October 21, 2016, which lease expires on 10/31/21 (with a lease term which commenced retroactive to October 1, 2016). There are two renewal terms which are each five years in duration. Our obligations to make payments under the lease are secured by a $250,000 standby letter of credit which we can reduce to $125,000 on October 31, 2019. Our monthly base rent (including payment for operating expenses) under the new lease is $24,340.35.

In order to meet the security requirement under the lease, we entered into a letter of credit with Avidbank on October 17, 2016 in the amount of $250,000, which expires on October 17, 2017 and is renewable by us for successive one year periods unless the bank notifies us no later than 60 days prior to the end of the initial or any extended term that it shall not renew the letter of credit. In order to accommodate this letter of credit, Avidbank, on the same date, increased our line of credit to $2.2 million from $2.0 million.

 

ITEM 9.01 Exhibit

 

99.1 Form of Lease

99.2 Form of Letter of Credit

99.3 Form of Second Amendment to Loan Agreement 

  

SIGNATURES


About OPTEX SYSTEMS HOLDINGS, INC. (OTCMKTS:OPXS)

Optex Systems Holdings, Inc. manufactures optical sighting systems and assemblies for the United States Department of Defense, foreign military applications and commercial markets. The Company has two segments: Optex Systems (OPX)-Richardson and Applied Optics Center (AOC)-Dallas. Its Optex Systems, Inc. manufactures optical sighting systems and assemblies. Its Applied Optics Center segment is engaged in the production, marketing and sales of precision optical assemblies and components, which utilize thin film coating technologies. Its product line includes Periscopes, Sighting Systems, Howitzers, Other and Applied Optics Center. Its product categories include Electronic sighting systems, Mechanical sighting systems, Laser protected plastic and glass periscopes, Non-laser protected plastic and glass periscopes, Howitzer sighting systems, M36 Thermal Day/Night Periscopes, M17 Day/Thermal Periscopes, Ship binoculars, Replacement optics and Optical assemblies and laser filters.

OPTEX SYSTEMS HOLDINGS, INC. (OTCMKTS:OPXS) Recent Trading Information

OPTEX SYSTEMS HOLDINGS, INC. (OTCMKTS:OPXS) closed its last trading session up +0.010 at 0.710 with 17,015 shares trading hands.

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