How to network between two Ubuntu VM's, then bridge VM1 to local machine, without VM2 having direct access to network?

I am trying to complete a lab for one of my networking classes, and I think I need some assistance on a rather specific issue.

I have two virtual machines:

VM1

VM2

(Both ruing ubuntu 14.04

And I need to set them up as follows, please excuse the crude diagram:

local machine <==> VM1 <==> VM2

With VM1 having a bridged coection to the local machine providing inteet, and then providing that coection to VM2 over an inteal network. VM2 caot be directly coected to the virtual machine. The end goal here is to set VM1 as a sort of firewall using IPTables, and use VM2 as a "webserver" for some light security tests. The VM's must be set up in this orientation, so any other suggestions will not be helpful due to the specifics of the lab.

Anyways, I have set up VM1 with two network adapters in virtual box, the first being an Inteal coection with the network name "testlab". The second adapter is set up to be a bridged coection with my local machine. For the second VM, I have set up only one network adapter, which is set to inteal coection with the name set to "testlab" as well.

Here is as far as I have gotten - I booted up both VM's after installing ubuntu. VM1 has 2 network coections, the first I set the IPv4 settings to Link Local only, the second I set to Automatic DHCP. VM2 has only one network coection, which I set to local only.

Now, from terminal I can ping my local machine and google with VM1, and recieve a response. I can also ping VM2 from VM1, with the reverse being true as well. However, the key issue is that I caot ping google from VM2. Is this a result of IPtables not being properly setup yet on VM1? Or is this because the link from Vm2 to VM1 is local only?

I feel like I am missing something basic here. Thank you in advance for any and all suggestions.