Item 1.01 Entry into a Material Definitive Agreement.
On April 5, 2021, and as contemplated by the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 2, 2020, nCino, Inc. (the “Company”) entered into a lease (the “Lease”) with Cloud Real Estate Holdings, LLC (the “Landlord”), pursuant to which the Company will lease a new office building (the “Building”) of approximately 90,000 square feet of space (the “Premises”), located at 6770 Parker Farm Drive, Wilmington, North Carolina 28405 (the “Property”), to be constructed by the Landlord.
The Lease will commence upon the completion of construction of the Building and tenant improvements therein. The Lease will have a fifteen-year term, subject to certain terms and conditions. The Company has the option to extend the Lease for two eight-year terms. The Company’s monthly base rent for the Premises will be equal to (A) the project costs of the Building shell (excluding tenant improvements) multiplied by 7.30% (except to the extent the sum of projects costs for the Building shell and a nearby parking deck exceeds $40 million, that excess shall instead be multiplied by 7.35%), divided by the rentable square footage of the Premises and (B) approximately half the amount of rent calculated for the parking deck, based on its project costs. This rent will increase on January 1, 2024 and each anniversary of such date by 2.25% per annum, and the Company will pay a make-whole payment to the Landlord (based on foregone monthly escalated rent) to delay rent escalation from the anniversary of Lease commencement to the following January 1. The Company will also be obligated to pay certain other expenses under the Lease pursuant to a triple net return obligation to the Landlord.
The Company is currently in possession of another building on the Property pursuant to the Office Lease dated November 29, 2020, as amended, between the Company and Landlord, which will be extended to be coterminous with this Lease.
The description of the Lease contained in the Current Report on Form 8-K (this “8-K”) does not purport to be complete and is qualified in its entirety by reference to the copy of the Lease, which is filed as Exhibit 10.1 to the 8-K and is incorporated by reference herein.
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 8-K is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
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Exhibit No.
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Description
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10.1
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104
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Cover Page Interactive Data File (embedded within the Inline XBRL document)
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