Item 1.01. Entry into a Material Definitive Agreement.
On January 7, 2020, Fate Therapeutics, Inc. (the "Company") and Scripps Summit
Investments LLC (the "Landlord") entered into a lease agreement (the "Lease")
for office, laboratory, and GMP manufacturing space (the "Premises"). The
Premises consists of 198,880 square feet in San Diego, California, and the
Company intends to move its corporate headquarters to the Premises in the middle
of 2021.
The Lease shall commence, subject to certain conditions, in May 2021 (the
"Commencement Date"). The Lease has a term of 15 years from the Commencement
Date, and the Company has the option to extend the Lease for two successive
five-year terms. The Company also has a one-time option to terminate the Lease
after 10 years from the Commencement Date, subject to payment of a $30 million
early termination fee.
The initial annual base rent is $42.60 per square foot per year, payable in
monthly installments beginning on the Commencement Date, and is subject to
annual increases of 3% of the then-current base rent. The Landlord will
contribute an aggregate of $30.0 million toward tenant improvements. In
connection with the Lease, the Company will maintain a letter of credit for the
benefit of the Landlord in an initial amount of $15 million, which amount is
subject to reduction over time.
The foregoing description of the terms of the Lease does not purport to be a
complete description of the rights and obligations of the parties thereunder,
and is qualified in its entirety by reference to the Lease, which will be filed
with the Company's Annual Report on Form 10-K for the year ended December 31,
2019, with confidential portions redacted.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
The information set forth under Item 1.01 of this Current Report on Form 8-K is
incorporated herein by reference.
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FATE THERAPEUTICS, INC. 
