TREVENA,INC.Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
On June 12, 2017, Trevena, Inc. (the Company) entered into a first amendment (the 1st Amendment) to its existing office lease (the Lease) with Chesterbrook Partners, L.P. (the Landlord) dated December 9, 2016 (the Lease) for space located at 955 Chesterbrook Boulevard, Wayne, PA 19087 (the Premises). Under the 1st Amendment, the Company agreed to lease an additional 8,231 square feet of space at the Premises (the Additional Space).
The lease for the Additional Space will commence on November 1, 2017 and will terminate at the same time as the termination date for the Lease (the Addition Space Lease Term), unless terminated earlier. The 1st Amendment provides for annual base rent of approximately $218,000 in the first year of the Additional Space Lease Term, which increases on a yearly basis up to approximately $259,000 for the final year of the Additional Space Lease Term. The 1st Amendment also provides for approximately nine (9) months of rent abatement split equally in the first and second years of the Additional Space Lease Term. In addition to the annual base rent, the Company will be obligated to pay its proportional share of certain costs, taxes and operating expenses related to the Additional Space and the Premises, subject to certain exclusions. The Company also will be entitled to a one-time improvement allowance of approximately $338,000 for costs related to the design and construction of Company improvements to the Additional Space.
To partially secure its obligations under the 1st Amendment, the Company has increased the existing $1,080,714 standby letter of credit for the Lease by $219,286 (the Letter of Credit), which may be drawn down by the Landlord to be applied for certain purposes upon the Companys breach of any provisions under the Lease and the 1st Amendment. Provided that no default occurs under the terms of the Lease and the 1st Amendment, the Company will be entitled to periodically reduce the amount of the Letter of Credit to $340,000 as of the first day of the eighty-fifth full calendar month of the Lease Term.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
(a) Creation of a Direct Financial Obligation.
The information set forth under Item 1.01 of this Current Report on Form 8-K with respect to the Lease is incorporated herein by reference.