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| VPHM > SEC Filings for VPHM > Form 8-K on 31-Aug-2012 | All Recent SEC Filings |
31-Aug-2012
Entry into a Material Definitive Agreement
On August 29, 2012, ViroPharma Incorporated (the "Company") entered into an amended and restated lease with each of 730 Stockton Drive Associates, L.P. (the "Landlord") and the Hankin Group for the property located at 730 Stockton Drive in Exton, Pennsylvania (the "Lease"), to expand the Company's corporate headquarters to approximately 149,264 square feet of office and related space. Under the Lease, the Company will continue to lease the 78,264 square feet of office and related space that currently serves as the Company's corporate headquarters (the "Existing Building") and will also lease approximately 71,000 additional square feet of office and related space to expand the corporate headquarters to a building (the "New Building") to be constructed by the Landlord. The exact square footage of the New Building will be determined upon completion of the New Building.
The Lease expires fifteen years from the "commencement date", which will occur when the Landlord has substantially completed the New Building, including any tenant improvements. The Company currently expects the commencement date to occur, and occupation of the New Building to begin, during the third quarter of 2013. The Company will pay monthly lease payments for the Existing Building of $109,243.50 through October 31, 2012 and $112,830.60 from November 1, 2012 until the commencement date. Upon the commencement date, the Company will pay monthly lease payments for the Existing Building and the New Building of approximately $173,519.40 for the first year following the commencement date and escalating amounts (with yearly percentage increases based on a consumer price index) during the remainder of the lease term. The exact amount of the monthly lease payments will be determined once the exact square footage of the New Building is set.
In addition to the monthly lease payment, the Company will pay monthly payments of $38,479.80 to the Landlord for estimated operating expenses and real estate taxes. Upon the commencement date, the monthly payment for estimated operating expenses and real estate taxes will increase to $73,388.13. The monthly payments for estimated operating expenses and real estate taxes are subject to change based on the Landlord's good faith estimate, pursuant to the terms of the Lease. At the end of each calendar year, the Landlord will reconcile the actual operating costs and real estate taxes with the amounts paid by the Company and the Company shall, in the event of an underpayment, pay the Landlord the difference or, in the event of an overpayment, receive a credit from the Landlord.
The Company has the option to renew the lease for two consecutive terms for up to a total of ten years at fair market value, subject to a minimum price per square foot. The first renewal term may be for between three and seven years, at the Company's option, and the second renewal term may be for ten years less the length of the first renewal term. In addition, the Landlord has agreed to provide the Company with a right of first offer to lease or purchase additional space if the Landlord desires to lease or sell all or a portion of certain adjacent buildings.
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