AVAV AeroVironment Inc

Item 1.01.  Entry into a Material Definitive Agreement.

On November 3, 2022, AeroVironment, Inc. (“AeroVironment”) entered into a Second Amendment to Lease (the “Second Amendment”) with an effective date of November 2, 2022, to amend its existing lease (the “Lease”) with Princeton Avenue Holdings, LLC (the “Original Landlord”) to now include Princeton Avenue Holdings II, LLC (“Princeton II, collectively with the Original Landlord, as tenants in common, “Landlord”) for certain premises located at 14501 Princeton Avenue, Moorpark, CA 93021. The Second Amendment also expands the existing premises to include an Additional Site Area as well as to extend the term of the Lease. Upon the commencement of the Second Amendment, AeroVironment will be the lessee for the Additional Site Area, as well as the currently leased entire building at 14501 Princeton Avenue which consists of an aggregate of approximately 149,973 square feet (“Existing Premises”, together with the Additional Site Area, collectively referred to as the “Premises”). The Second Amendment will commence on January 1, 2024 and continue through the term of the Lease, the end date of which is March 31, 2027. The base monthly rent during the Lease term for the Premises will be as follows:

Upon the commencement of the Second Amendment, AeroVironment will be responsible for 100% of the building’s operating expenses, including property taxes, as the sole tenant in the building. Pursuant to the optional extension terms in the Lease, AeroVironment will have the option to extend the term for one (1) period of forty-eight (48) months, followed by one (1) additional period of sixty (60) months (the “Option Term(s)”). The base rent attributable to the Premises for the Option Terms will be equal to 100% of the “Fair Market Rental Value”, to be determined in good faith by appraisers specialized in this field, but in no event less than 104% of the Base Rent attributable to the Premises immediately preceding the Expiration Date or the expiration of the first Option Term.

The foregoing description of the Second Amendment does not purport to be complete and is qualified in its entirety by reference to the complete text of such document, which will be filed as an exhibit to AeroVironment’s Quarterly Report on Form 10-Q for the quarter ending October 29, 2022.