AERG Applied Energetics Inc (QB)

Item 1.01 – Entry into a Material Definitive Agreement

On June 15, 2023, Applied Energetics, Inc. executed the First Amendment to Lease Agreement, effective June 7, 2023, which amended its existing Lease Agreement, dated as of March 15, 2021 (the “Lease”), with Campus Research Corporation, an Arizona corporation, as Landlord.

The amendment expands the Lease to add one new 8,374 usable square-foot suite of offices, conference rooms and cubicle areas directly across an atrium from the company’s current headquarters so that the company will occupy the entire first floor of the building. [This is expected to enable the company to separate its public facing facilities from its restricted access space easily.] The amendment also extends the Lease over the company’s existing headquarters through July 31, 2028 and grants the company an option over 5,520 usable square feet of manufacturing space.

The term of occupancy in the new office space and the option over the manufacturing space both begin August 1, 2023. The monthly base rent for the new office space is set as follows:

The option is effective, at a price of $2,690.83 per month, from August 1, 2023 through February 1, 2024, but may be extended to July 31, 2024 if the company provides written notice by November 30, 2023. The monthly base rent for the manufacturing space, should the company opt to occupy it is set as follows:

Under the amendment, the Lease extends through July 31, 2028 for all three spaces. The monthly rent for the company’s existing space is set at $17,825.33 and $18,270.97 for May 1, 2026 through April 30, 2027 and May 1, 2027 through July 31, 2028, respectively.