Item 1.01 Entry into a Material Definitive Agreement.
Effective as of November 1, 2021, Revolution Medicines, Inc. (the "Company")
entered into a Third Amendment to Lease (the "Third Amendment") with HCP LS
Redwood City, LLC (the "Landlord"), which amends that certain lease dated
January 15, 2015 with the Landlord, as twice amended (the "Lease"), to lease an
additional 41,445 square feet (the "800 Building") of office, laboratory, and
research and development space located at 800 Saginaw Drive, Redwood City,
California (together with the premises previously leased under the Lease, the
"Premises"), and to extend the lease term of the portion of the Premises located
at 700 Saginaw Drive, Redwood City, California (the "700 Building") and 300
Saginaw Drive, Redwood City, California (the "300 Building"). The Company
previously entered into a Second Amendment to the Lease on April 17, 2020 (the
"Second Amendment"), to lease an additional 19,484 square feet of office,
laboratory, and research and development space for the 300 Building.
Under the Third Amendment, the term of the lease for the portion of the Premises
located at the 800 Building is anticipated to commence on November 7, 2021 and
expire on November 30, 2033, and the lease expiration dates for the 700 Building
and 300 Building were extended from December 31, 2030 to November 30, 2033 (the
"Lease Extension Period"). The Company has an option to extend the lease term
for the entire Premises by an additional ten years beyond the end of the Lease
Extension Period (the "Option Term").
The annual base rent for the lease of the portion of the Premises located at the
800 Building is approximately $2.685 million until November 30, 2022, after
which the annual base rent will increase by approximately 3.5% in each
subsequent year of the lease term. The annual base rent for the 300 Building and
700 Building remains unchanged through the previous lease term expiration date
under the Second Amendment. As of the commencement of the Lease Extension
Period, the annual base rent of the 700 Building will be approximately
$3.565 million and will thereafter increase by 3.5% annually on each May 1
during the Lease Extension Period, and the annual base rent of the 300 Building
will be approximately $1.715 million and will thereafter increase by 3.5%
annually on each January 1 during the Lease Extension Period. The Company will
also continue to be responsible for payment of its pro-rata share of operating
expenses and taxes for the Premises.
The Third Amendment also provides for two months of abatement of the monthly
base rent for the 800 Building, from December 1, 2021 through January 30, 2022.
Under the Third Amendment, the Lease continues to provide for annual base rent
during the Option Term, if any, to be calculated based on a fair market rental
rate as determined in the Lease.
The foregoing description of the material terms of the Third Amendment does not
purport to be complete and is subject to, and is qualified in its entirety by,
reference to the Third Amendment, which will be filed as an exhibit to the
Company's Quarterly Report on Form 10-Q for the quarterly 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 disclosure included in Item 1.01 of this Current Report on Form 8-K is
incorporated into this Item 2.03 by reference.
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