8-KMaterial AgreementsExhibits & Filings

F5, INC. 8-K Report, Material Agreement (Nov 3, 2006)

Filed November 3, 2006For Securities:FFIV

Summary

F5, Inc. (FFIV) filed an 8-K on November 3, 2006, to report a material definitive agreement: an office lease. The company entered into a 10-year lease for approximately 137,201 square feet of office space at 333 Elliott West, adjacent to its current corporate headquarters. This expansion is intended to accommodate general office space needs and is scheduled for occupancy by fiscal Q2 2008, following construction completion. The lease agreement includes significant terms such as an initial base annual rent of approximately $3.43 million, with no payments due until occupancy. Rent is subject to annual increases and the company will also be responsible for operating expenses. F5 has secured options to extend the lease term and a right of first offer to purchase the property, indicating a strategic long-term commitment to the location.

Key Highlights

  • 1F5, Inc. signed a 10-year office lease for approximately 137,201 square feet at 333 Elliott West.
  • 2The new office space is adjacent to the company's current corporate headquarters.
  • 3Occupancy is planned for fiscal Q2 2008, contingent upon construction completion.
  • 4Initial base annual rent is approximately $3.43 million, with payments deferred until occupancy.
  • 5The lease includes annual rent escalations of $1.00 per rentable square foot.
  • 6F5 has options to extend the lease for up to two additional five-year terms or one ten-year term.
  • 7The company has a right of first offer to purchase the leased premises and associated real property.

Frequently Asked Questions

F5, Inc. is leasing approximately 137,201 square feet of office space to accommodate general office needs. The new facility is located next to their existing corporate headquarters and is intended to support the company's growth.

The company intends to occupy the new building by fiscal Q2 2008, after construction is completed. Importantly, no lease payments are due until construction is finished and the company occupies the property.

The initial base annual rent is approximately $3.43 million, commencing upon occupancy. There will be annual increases to the base rent. In addition to rent, F5 will be responsible for operating expenses like utilities and real estate taxes. The company has also secured significant lease extension options and a right of first offer to purchase, suggesting a long-term strategic commitment.

Yes, F5 has secured significant flexibility. They have the option to extend the lease term for two additional five-year periods or one ten-year period. Additionally, the company has a right of first offer to purchase the leased premises and the underlying real estate, providing potential future ownership opportunities.