Item 1.01 Entry into a Material Definitive Agreement.
On February 11, 2021, Regulus Therapeutics Inc. (the "Company") entered into a
lease agreement (the "Lease") with ARE-SD Region No. 58, LLC ("Landlord") for
the lease of approximately 13,438 square feet of rentable area of the building
located at 4224 Campus Point Drive, Suite 210, San Diego, California 92121 (the
"New Premises"). The commencement date of the Lease is expected to be on or
before April 15, 2021 (the "Commencement Date"). The Company expects to use the
New Premises as its new principal executive offices and as a laboratory for
research and development, manufacturing, and other related uses. The term of the
Lease (the "Initial Term") is five years, ending May 1, 2026 (assuming an
April 15, 2021 Commencement Date). The aggregate base rent due over the Initial
Term under the terms of the Lease is approximately $3.9 million (without giving
effect to certain rent abatement terms). The Company will also be responsible
for the payment of additional rent to cover the Company's share of the annual
operating expenses of the building, the annual tax expenses of the building and
the annual utilities costs for the building. In the event of a default of
certain of the Company's obligations under the Lease, Landlord would have the
right to terminate the Lease and recover damages as provided by the lease
contract and by law.
On February 11, 2021, concurrently with entry into the Lease, the Company
entered into an Assignment and Assumption of Lease (the "Assignment Agreement")
with Turning Point Therapeutics, Inc. ("Turning Point") assigning its lease
agreement (the "Prior Lease") with ARE-SD Region No. 44, LLC for the premises
located at 10628 Science Center Drive, Suite 225, San Diego, California 92121
(the "Prior Premises"). Pursuant to the Assignment Agreement, Turning Point will
pay to the Company $60,000 in exchange for an assignment of all of the Company's
rights and obligations under the Prior Lease. The Company is obligated under the
Assignment Agreement to deliver the Prior Premises to Turning Point within five
days of the Landlord's delivery of the New Premises to the Company (the
"Assignment Date")
On February 11, 2021, concurrently with entry into the Lease and the Assignment
Agreement, the Company, Turning Point and ARE-SD Region 44, LLC entered into a
Consent to Assignment (the "Consent") pursuant to which the Company shall be
released from all of its obligations under the Prior Lease on the Assignment
Date.
The foregoing descriptions of the Lease and the Assignment Agreement are
qualified in their entirety by reference to the Lease and the Assignment
Agreement, copies of which will be filed as exhibits to the Company's Annual
Report on Form 10-K for the year ended December 31, 2020.
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