NKARTA, INC. : Entry into a Material Definitive Agreement, Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant, Financial Statements and Exhibits (form 8-K)

Published: 2021-10-22 16:16:07 ET NKTX

Item 1.01 Entry into a Material Definitive Agreement.

On October 21, 2021, Nkarta, Inc. (the "Company") entered into a Fourth Amendment to Lease (the "Amendment") by and between the Company and HCP Life Science REIT Inc. (the "Landlord"), which amends that certain Lease, dated as of May 29, 2018 (as amended from time to time, the "2018 Lease"), by and between the Company and the Landlord, for office and laboratory space in South San Francisco, California (the "2018 Leased Premises"). The Amendment expands the 2018 Leased Premises to include approximately an additional 8,075 rentable square feet of space in Suite 104 (the "Fourth Expansion Premises") on the first floor of the Company's headquarters at 6000 Shoreline Court in South San Francisco, California for a total of 42,145 rentable square feet. The term for the Fourth Expansion Premises commences on a date (such date, the "Fourth Expansion Commencement Date") that is two (2) weeks following the "Delivery Date" (as defined in the Amendment), which Delivery Date is anticipated to be April 1, 2022, and expires coterminously with the lease term for the 2018 Leased Premises on January 31, 2029. The Amendment adds the Fourth Expansion Premises to the portion of the 2018 Leased Premises that is subject to the Company's option under the 2018 Lease to extend the term of the lease for seven (7) additional years. The other terms of the 2018 Lease remain unchanged.

The Company will become responsible for paying rent for the Fourth Expansion Premises on the Fourth Expansion Commencement Date. The Company's monthly installment of base rent for the Fourth Expansion Premises will start at approximately $50,469 on the Fourth Expansion Commencement Date and will increase by 3.5% on an annual basis up to a maximum monthly base rent of approximately $62,039. The Company will receive a rent abatement equal to the first two months of base rent, subject to the terms and conditions set forth in the Amendment. The Company will also receive a tenant allowance from the Landlord in an amount equal to approximately $121,125.00 (or $15.00 per rentable square foot of space of the Fourth Expansion Premises) to be applied to the Company's initial design and construction of tenant improvements to the Fourth Expansion Premises.

The foregoing summary of the Amendment does not purport to be complete and is qualified in its entirety by reference to the Amendment, which is filed as Exhibit 10.1 to this Current Report on Form 8-K and incorporated by reference herein.

The information set forth above under Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

Item 9.01Financial Statements and Exhibits.

(d) Exhibits

Exhibit

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