Item 1.01. Entry into a Material Definitive Agreement. OnOctober 29, 2021 ,Traeger Pellet Grills LLC ("TPG"), a wholly owned subsidiary ofTraeger, Inc. (the "Company"), entered into a Sublease (the "Sublease") withVerkada, Inc. (the "Subtenant") for Subtenant to sublease from TPG, among other space, TPG's approximately 51,151 gross square feet of office space (the "Subleased Premises") in the building located at1215 East Wilmington Avenue inSalt Lake City, Utah . TPG leases that office space (the "Leased Premises") fromWilmington Gardens Group L.L.C. (the "Landlord") pursuant to a Lease Agreement, datedJanuary 23, 2015 , as amended on or aboutApril 1, 2015 ,February 8, 2016 ,November 22, 2016 ,December 4, 2017 , andAugust 28, 2018 (as amended, the "Lease Agreement"). OnOctober 28, 2021 , in accordance with the Lease Agreement, the Landlord provided its consent to the Sublease. OnNovember 1, 2021 , TPG delivered to the Subtenant possession of the first portion of the Subleased Premises, consisting of 11.03% of the Leased Premises (the "Phase I Subleased Premises"), at which point the Sublease became effective, and the term of the Sublease commenced. The Sublease provides that the Subleased Premises may be delivered to the Subtenant in stages, including delivery of (i) the Phase I Subleased Premises, (ii) the second portion of the Subleased Premises, which, combined with the Phase I Subleased Premises, will increase the Subtenant's portion to 19.96% of the Leased Premises (the "Phase II Subleased Premises") and (iii) the remaining portion of the Subleased Premises, which, combined with the Phase I Subleased Premises and the Phase II Subleased Premises, will increase the Subtenant's portion to 100% of the Leased Premises (the "Phase III Subleased Premises"). If TPG fails to deliver to the Subtenant the Phase II Subleased Premises byMarch 1, 2022 , the Subtenant will receive a rent abatement of one day of base rent (for the Phase II Subleased Premises only) for each day until such portion is delivered, which rent abatement, afterJune 1, 2022 , will increase to two days of base rent (for the Phase II Subleased Premises only) for each subsequent day of delayed delivery. If TPG fails to deliver to the Subtenant the Phase III Subleased Premises byFebruary 1, 2023 , the Subtenant will receive a rent abatement of one day of base rent (for the Phase III Subleased Premises only) for each day until such portion is delivered, which rent abatement, afterApril 1, 2023 , will increase to two days of base rent (for the Phase III Subleased Premises only) for each subsequent day of delayed delivery. If TPG fails to deliver the complete Subleased Premises to the Subtenant byApril 15, 2023 , the Subtenant may terminate the Sublease on 60 days' notice. The Sublease provides for initial annual base rent for the complete Subleased Premises of approximately$1.9 million , with an increase of approximately 3.0% in annual base rent for the second 12-month period following delivery of the Phase III Subleased Premises and increases of approximately 2.5% in annual base rent for each 12-month period thereafter. The Sublease will terminate onJune 30, 2026 , unless terminated earlier in accordance with its terms. The Sublease further provides that the Subtenant is obligated to pay to TPG certain additional amounts, including, among others, a security deposit and certain operating expenses attributable to the Subleased Premises. The Sublease also contains customary representations and warranties, covenants, obligations and indemnities in favor of either party. The foregoing description of the material terms of the Sublease does not purport to be complete and is subject to, and is qualified in its entirety by, reference to the Sublease, which is attached to this Current Report on Form 8-K as Exhibit 10.1 and incorporated herein by reference.
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Item 9.01 Financial Statements and Exhibits.
(d) Exhibits. Exhibit No. Description 10.1 Sublease, dated as ofOctober 29, 2021 , by and betweenTraeger Pellet Grills LLC andVerkada, Inc. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).
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