EXHIBIT 10.1

 

THIRD AMENDMENT TO LEASE

 

THIS THIRD AMENDMENT TO LEASE (this “Third Amendment”) is dated as of March 15,
2005 (the “Effective Date”), between CARR DEVELOPMENT & CONSTRUCTION, L.P., a
Delaware limited partnership (“Lessor”), successor in interest to CRV PARTNERS,
L.P., a limited partnership (“CRV”), successor in interest to AGBRI NANCY RIDGE,
LLC, a Delaware limited liability company (“Original Lessor”), and
CARDIODYNAMICS INTERNATIONAL CORPORATION, a California corporation (“Lessee”).

 

RECITALS

 

Original Lessor and Lessee entered the Original Lease as of 20 June 1997, under
which Lessor leased the Original Premises to Lessee. The Original Lease was
subsequently amended by the First Amendment and by the Second Amendment.

 

Lessor and Lessee desire to amend the Lease to extend the term of the Lease,
among other things, subject to the terms and conditions set forth herein.

 

NOW THEREFORE, in consideration of the foregoing recitals, the mutual covenants
and agreements contained herein, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Lessor and Lessee
agree, and amend the Lease, as follows.

 

1. Definitions

 

Terms not defined in this Section but which are capitalized throughout this
Third Amendment have the meanings stated in the Original Lease, as amended by
the First Amendment and by the Second Amendment.

 

“Building” means the building at 6175 Nancy Ridge Drive, San Diego, California.

 

“First Amendment” means Amendment No.1 to the Original Lease, dated March 21,
2002, executed by and between CRV and Lessee.

 

“Lease” means the Original Lease as amended by the First Amendment, by the
Second Amendment and by this Third Amendment.

 

“Original Lease” means the “Commercial Multi-Tenant Lease – Modified Net”
effective as of 20 June 1997, under which Lessor leased the Original Premises to
Lessee.

 

“Second Lease Amendment” means Second Amendment to Lease, dated June 28, 2004,
executed by and between Lessor and Lessee.

 

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2. Term

 

Section 1.3 of the Lease is hereby amended to include the following:

 

The term of the Lease is hereby extended from its scheduled expiration date of
31 December 2007 under the Second Amendment up to and including 31 December 2009
(“Further Extended Term”).

 

3. Base Rent

 

(a) Base Rent for Original Premises Notwithstanding any other provisions of the
Lease or the First Amendment or Second Amendment, commencing on August 1, 2004,
Lessee shall pay monthly Base Rent (on a triple net basis) for the Original
Premises as follows:

 

Rental Period

--------------------------------------------------------------------------------

   Square
Footage

--------------------------------------------------------------------------------

   Monthly Base
Rent Rate

--------------------------------------------------------------------------------

   Monthly Base
Rent

--------------------------------------------------------------------------------

   Annual Base
Rent Rate

--------------------------------------------------------------------------------

   Annual Base
Rent

--------------------------------------------------------------------------------

 

8/1/04 – 7/31/07

   17,779    $ 1.11    $ 19,675.43    $ 13.22    $ 236,105.12  

8/1/07 – 7/31/08

   17,779    $ 1.22    $ 21,705.20    $ 14.64    $ 260,462.35  

8/1/08 – 7/31/09

   17,779    $ 1.26    $ 22,356.35    $ 15.12    $ 268,276.22  

8/1/09 – 12/31/09

   17,779    $ 1.30    $ 23,027.04    $ 15.60    $
 
  115,135.20
(prorated
partial year  
 
)

 

(b) Base Rent for Expansion Space Notwithstanding any other provisions of the
Lease or the First Amendment or Second Amendment, commencing on November 1,
2004, Lessee shall pay monthly Base Rent (on a triple net basis) for the
Expansion Space as follows:

 

Rental Period

--------------------------------------------------------------------------------

   Square
Footage

--------------------------------------------------------------------------------

   Monthly Base
Rent Rate

--------------------------------------------------------------------------------

   Monthly
Base Rent

--------------------------------------------------------------------------------

   Annual Base
Rent Rate

--------------------------------------------------------------------------------

   Annual Base
Rent

--------------------------------------------------------------------------------

 

11/1/04 – 10/31/05

   15,003    $ 0.47    $ 6,976.40    $ 5.64    $ 83,716.74  

11/1/05 – 10/31/06

   15,003    $ 0.92    $ 13,727.75    $ 11.04    $ 164,732.94  

11/1/06 – 10/31/07

   15,003    $ 0.94    $ 14,139.58    $ 11.28    $ 169,674.93  

11/1/07 – 10/31/08

   15,003    $ 0.97    $ 14,563.76    $ 11.64    $ 174,765.18  

11/1/08 – 10/31/09

   15,003    $ 1.00    $ 15,000.68    $ 12.00    $ 180,008.13  

11/1/09 – 12/31/09

   15,003    $ 1.00    $ 15,000.68    $ 12.00    $
 
  30,001.36
(prorated
partial year  
 
)

 

4. TI Allowance for Premises Lessor shall make available to Lessee a tenant
improvement allowance equal to $196,692 (the “Additional TI Allowance”) for the
construction of improvements (collectively, the “Additional Tenant
Improvements”) to the Original Premises and the Expansion Space desired by and
to be performed by Lessee (subject to Lessor’s supervision). Lessee acknowledges
and agrees that Lessee shall be entirely responsible for the planning and
construction process of the Additional Tenant Improvements and that Lessee shall
be required to seek Lessor’s

 

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prior written consent to the final space plan and construction drawings, which
consent shall not be unreasonably withheld. Upon the expiration of the term of
the Lease, the Additional Tenant Improvements shall become the property of
Lessor and may not be removed by Lessee. Except for the Additional TI Allowance,
Lessee shall be solely responsible for all of the costs of the Additional Tenant
Improvements. The Additional Tenant Improvements shall be treated as Alterations
and shall be undertaken pursuant to Section 7 of the Original Lease. Lessee may
engage its own architect or space planner for the new Additional Tenant
Improvements, subject to Lessor’s reasonable approval, whose cost shall be paid
for as part of the Additional TI Allowance. Lessor shall fund the Additional TI
Allowance upon completion of the Additional Tenant Improvements and upon
presentation to Lessor of a draw request containing unconditional lien waivers
and such other documents as Lessor and Lessee agree are customary for
construction projects in the San Diego area. Promptly following completion of
the Additional Tenant Improvements and prior to funding by Lessor, Lessee shall
provide to Lessor: (i) sworn statements setting forth the names of all
contractors and subcontractors who did the work on the Additional Tenant
Improvements and final lien waivers from all such contractors and
subcontractors; and (ii) a certificate of occupancy and “as built” plans for the
Additional Tenant Improvements.

 

5. Right to Extend The Original Lease’s Extension Option Rider is hereby deemed
renewed as of the Effective Date of this Third Amendment as follows:

 

  (i) Extension Option Rider

 

  (a) Rider Effective Date shall be the Effective Date of this Third Amendment
to Original Lease;

 

  (b) Exercise of Option Notice must be given not more than thirteen (13) and no
less than six (6) months prior to the end of the Further Extended Term as
defined by Section 2 of this Third Amendment;

 

  (c) All references to the “term” or “initial Term” shall be revised to read
“Further Extended Term as defined by Section 2 of the Third Amendment to
Original Lease”.

 

6. Brokers Each party warrants that it knows of no broker or agent who is or
might be entitled to a commission in connection with this Third Amendment.
Lessee shall indemnify and defend Lessor against any claims by any broker or
third party claiming through Lessee for any payment of any kind in connection
with this Third Amendment.

 

7. Governing Law This Third Amendment shall be governed by, and construed and
enforced in accordance with, the laws of the State of California.

 

8. Counterparts This Third Amendment may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed to be
an original and all of which counterparts taken together shall constitute but
one and the same instrument. Signature pages may be detached from the
counterparts and attached to a single copy of this Third Amendment to physically
form one document.

 

9. Reaffirmation of Obligations Lessor and Lessee each hereby acknowledge and
reaffirm all of their respective obligations under the Lease, as such Lease has
been amended by this Third Amendment, and agree that any reference made in any
other document to the Lease shall mean the Original Lease as amended pursuant to
the First Amendment, the Second Amendment and this Third

 

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Amendment. Except as expressly provided herein, the Lease remains unmodified and
in full force and effect. The Lease shall remain in full force and effect and
binding upon the parties hereto and the Premises except as otherwise addressed
herein. Any breach of this Third Amendment, including any exhibit hereto, shall
constitute a breach and default under the Lease.

 

10. Miscellaneous Time is of the essence in this Lease and each and all of its
provisions. The agreements, conditions and provisions herein contained shall
apply to and bind the heirs, executors, administrators, successors and assigns
of the parties hereto. If any provisions of this Lease shall be determined to be
illegal or unenforceable, such determination shall not affect any other
provision of the Lease and all such other provisions shall remain in full force
and effect. If there is any inconsistency between the provisions of this Third
Amendment and the other provisions of the Lease, the provisions of this Third
Amendment shall control with respect to the subject matter of this Third
Amendment. This Third Amendment constitutes a part of the Original ease and is
incorporated by this reference.

 

IN WITNESS WHEREOF, Lessor and Lessee have caused this Third Amendment to be
duly executed and delivered as of the date first above written.

 

“LESSOR”

CARR DEVELOPMENT & CONSTRUCTION,

L.P., a Delaware limited partnership

By:  

CDC Texas Holdings, LLC,

a Delaware limited liability company,

its general partner

By:  

CARC Properties, LLC,

a Delaware limited liability

company, its sole member

By:  

CarrAmerica Realty

Operating Partnership, L.P.,

a Delaware limited partnership, its sole member

By:  

CarrAmerica Realty Corporation, a

Maryland corporation,

its general partner

By:  

/s/ W.M. O’Donnell, JR

Name:

 

W.M. O’Donnell, JR

Title:

 

Managing Director

 

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“LESSEE”

CARDIODYNAMICS INTERNATIONAL

CORPORATION,

a California corporation

By:  

/s/ Steve P. Loomis

Name:

 

Steve P. Loomis

Title:

 

CFO