Item 1.01.
Entry into a Material Definitive Agreement.
On November 13, 2018, Leap Therapeutics, Inc. (the Company) entered into a Lease (the Lease) with Bulfinch Square Limited Partnership, as landlord (Landlord), pursuant to which the Company will lease a portion of the first floor of the building located at 47 Thorndike Street, Cambridge, Massachusetts designated as Suite B1-1 (the Premises). The Premises consists of approximately 7,667 rentable square feet. The Premises will serve as the Companys principal place of business.
The Lease will become effective May 1, 2019 (the Commencement Date), after the expiration of the Companys current lease. The initial term of the Lease is 3 years, commencing on the Commencement Date and expiring on April 30, 2022. The Company has an option to extend the Lease term for one additional 3-year term (the Extended Term).
Upon commencement of the Lease, the Company shall be obligated to make monthly rent payments to the Landlord. The aggregate rent payments the Company shall be responsible for over the initial term of the Lease is equal to $1,288,146, with an annual amount of $421,685 to be paid in first year of the Lease term, an annual amount of $429,352 to be paid in the second year of the Lease term and an annual amount of $437,019 to be paid in the third year of the Lease term. The rent payable by the Company during the Extended Term shall be equivalent to the Premises fair market annual rent as of the commencement of each year of the Extended Term, determined in accordance with the provisions of the Lease. In addition to rent obligations, the Company will be responsible for certain costs and charges specified in the Lease, including certain operating expenses, utility expenses, maintenance and repair costs relating to the Premises, taxes, and insurance.
Pursuant to the terms of the Lease, the Company was required to deposit with the Landlord a cash security deposit in the amount of $24,119.40 to secure the Companys performance of its obligations under the Lease.
The foregoing description of the Lease does not purport to be complete and is qualified in its entirety by reference to the full text of the Lease. A copy of the Lease is filed with this Current Report on Form 8-K as Exhibit 1.1 and is incorporated herein by reference.