On October 21, 2016, Select Comfort Corporation (the Company) entered into a Lease Agreement with DCI 1001 Minneapolis Venture, LLC, as landlord (the Landlord), for corporate office space of approximately 211,000 square feet located at 1001 3
Avenue South, Minneapolis, MN 55404. This office space will replace two existing office space leases expiring October 2017 of similar aggregate square footage and operating costs. The Lease Agreement has a commencement date of November 1, 2017 and an initial term of 15 years.
Under the Lease Agreement, the Company is required to pay an initial base rent of $10.25 per square foot per year, increasing to $14.08 per square foot per year by the final year of the initial term, as well as paying the Companys pro rata share of all property ta xes, insurance, maintenance, and expenses as defined in the Lease Agreement. The Company also has an option to extend the term of the Lease Agreement for up to three additional five year terms at a rate equal to 95% of the then market rate for comparable buildings in the market. The Lease Agreement also contains other customary terms, conditions, events of default and covenants.
The foregoing description of the Lease Agreement is qualified in its entirety by the full text of the Lease Agreement, which the Company will file as an exhibit to the Companys Annual Report on Form 10-K for the fiscal year ending December 31, 2016.
ITEM 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The information required by this Item 2.03 is set forth under Item 1.01 of this Current Report on Form 8-K, which is incorporated herein by reference.
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.
SELECT COMFORT CORPORATION
Dated: October 25, 2016
/s/ Mark A. Kimball
Name: Mark A. Kimball
Title: Senior Vice President
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