Item 1.01. Entry into a Material Definitive Agreement. A sub-lease agreement (the "Sub-Lease") by and betweenExagen Inc. (the "Company") andPlum Healthcare Group, LLC ("Plum Healthcare ") became effective onAugust 23, 2021 , pursuant to which the Company has agreed to lease additional office space located at2175 Salk Avenue , 3rd Floor,Carlsbad, California 92008. The Sub-Lease will provide the Company with approximately 28,000 square feet of additional office space. The Sub-Lease will commence onOctober 1, 2021 and expire onApril 30, 2027 . The Sub-Lease provides for monthly base rent of$66,021 beginningOctober 1, 2021 , which amount shall increase by approximately 3% annually beginning onOctober 1, 2022 . The Company is entitled to base rent abatement for a specified period beginning onNovember 1, 2021 . The Company will deliver toPlum Healthcare a security deposit in the amount of$153,073 . Subject to certain exceptions, the Sub-Lease incorporates the terms and conditions of the lease (the "Master Lease") by and betweenPlum Healthcare and Brookwood CB I, LLC andBrookwood CB II, LLC (collectively, as tenants in common, "Brookwood CB") as though the Company were the tenant andPlum Healthcare were the landlord under the Master Lease. The Master Lease contains customary representations, warranties, covenants, indemnification provisions, and default provisions for a Sub-Lease of this nature. Upon the occurrence of an event of default, as defined in the Master Lease, Brookwood CB may terminate the Master Lease and thePlum Healthcare may terminate the Sub-Lease. The Company does not have a right to terminate the Sub-Lease or the Master Lease. The foregoing description of the Sub-Lease does not purport to be complete and is qualified in its entirety by reference to the full text of the Sub-Lease, which will be filed as an exhibit to the Company's Quarterly Report on Form 10-Q to be filed for the quarter endingSeptember 30, 2021 . Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The disclosure set forth under Item 1.01 of this Current Report on Form 8-K is incorporated into this Item 2.03 by reference.
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