Item 1.01 Entry into a Material Definitive Agreement.
75 Hayden Avenue Lease Agreement
On January 7, 2020, Frequency Therapeutics, Inc. (the "Company") entered into an
indenture of lease (the "Lease") with HCP/KING 75 HAYDEN LLC ("Landlord") for
the lease of approximately 61,307 square feet of rentable area of the building
located at 75 Hayden Avenue, Lexington, Massachusetts 02421 (the "Premises").
The commencement date of the Lease is expected to be on or about December 1,
2020 (the "Commencement Date"). The Company expects to use the Premises as its
new principal executive offices and as a laboratory for research and
development, and other related uses. The term of the Lease (the "Initial Term")
is ten years from the rent commencement date (which is five months following the
Commencement Date), and the Initial Term is expected to end on April 30, 2031
(assuming a December 1, 2020 Commencement Date). The Company has the option to
extend the Initial Term for two additional terms of five years each. The Company
also has the option to sublet the Premises on the terms and conditions set forth
in the Lease. The annual base rent due for the first year of the Initial Term
under the terms of the Lease is approximately $4.08 million, which annual base
rent will increase at a rate of three percent thereafter during the Initial
Term. 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. The Landlord is obligated to contribute to (i) a tenant improvement
allowance of up to $11.03 million and (ii) an additional tenant improvement
allowance, which would be amortized on a straight-line basis at eight percent
over the Initial Term, if so elected by us, of up to $0.9 million. The Company
is also obligated to provide a cash security deposit in the form of a letter of
credit in the amount of $1.7 million, which is required to be maintained during
the Initial Term. In the event of a default of certain of the Company's
obligations under the Lease, Landlord would have right to terminate the Lease
and recover damages as provided by the Lease and by law.
The foregoing description of the Lease is qualified in its entirety by reference
to the Lease, a copy of which will be filed as an exhibit to the Company's
Annual Report on Form 10-K for the year ended December 31, 2019.
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