Item 1.01 Entry into a Material Definitive Agreement.
On September 7, 2021, Keros Therapeutics, Inc. (the "Company") entered into an
indenture of lease (the "Lease") with Revolution Labs Owner, LLC, a Delaware
limited liability company (the "Landlord"), pursuant to which the Company will
lease approximately 35,662 square feet of office and laboratory space located at
1050 Waltham Street, Lexington, Massachusetts (the "Premises") for its new
principal executive office.
The term of the Lease will commence on the date the Landlord delivers the
Premises to the Company after the substantial completion of agreed upon
improvements to be performed by the Landlord, which the parties expect to be on
or prior to October 21, 2022 (such date, the "Commencement Date"). The Company's
obligation for the payment of base rent for the Premises begins four months
after the Commencement Date (the "Rent Commencement Date") and will initially be
fixed at $202,084.66 per month, which will increase by approximately 3% per
annum. The Company will be obligated to pay the Landlord for certain costs,
taxes and operating expenses as specified in the Lease. The Lease has a term of
eight years and four months, measured from the Commencement Date. The Company
has the option to extend the term of the Lease for a period of an additional
five years. Under the terms of the Lease, the Landlord has agreed to make up to
approximately $6.8 million in certain tenant improvements to the Premises to
suit the Company's use.
In connection with its entry into the Lease and as a security deposit, the
Company has provided the Landlord a letter of credit in the amount of
approximately $1.2 million, which may be reduced to approximately $0.8 million
on the expiration of the four-year anniversary of the Rent Commencement Date so
long as there are, and have been, no defaults by the Company under the terms of
the Lease.
The Landlord has the right to terminate the Lease upon customary events of
default. The Company may also terminate the Lease if (i) the landlord work on
the Premises has not commenced on or prior to July 1, 2022 or (ii) the Premises
are not ready for occupancy within a specified time period after October 21,
2022.
The description of the Lease contained in this Current Report on Form 8-K does
not purport to be complete and is qualified in its entirety by reference to the
Lease, a copy of which will be filed as an exhibit to the Company's Quarterly
Report on Form 10-Q for the period ending September 30, 2021.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth in or incorporated by reference into Item 1.01 of this
Current Report on Form 8-K is incorporated into this Item 2.03 by reference.
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KEROS THERAPEUTICS, INC. 
