exv10w19



 





EXHIBIT 10.19




FIRST AMENDMENT TO LEASE



This First Amendment to Lease is made this 20th day of February, 2007, by and between
Industrial Equities Group LLC (“Landlord”) and Cardiovascular Systems, Inc. (“Tenant”).




RECITALS



WHEREAS, Landlord and Tenant entered into a Lease dated September 26, 2005 (the “Lease”) for
certain premises containing approximately 25,576 total square feet located at Lakeview Business
Campus III, 651 Campus Drive, New Brighton, Minnesota (“Leased Premises”); and



WHEREAS, Tenant is desirous of expanding the Leased Premises by leasing approximately 8,980 square
feet of additional space (8,937 sq. ft. of office space and
43 sq. ft. of common area) located
adjacent to the Leased Premises as shown on the attached Exhibit A (“Expansion Space”); and



WHEREAS, Landlord and Tenant are desirous of extending the lease term to expire on May 31, 2012.



NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Landlord and Tenant hereby agree to amend the Lease as follows:





	1.	 	The Lease for the Expansion Space shall commence on May 1, 2007. Landlord will make its best
efforts to complete the space by April 1, 2007 and that any occupancy prior to the May
1st commencement date will be at no additional cost other than utilities which
Tenant may use which shall be separately metered.
	 
	2.	 	The Lease term shall terminate May 31, 2012.
	 
	3.	 	For purposes of this Amendment, effective May 1, 2007, the Leased Premises shall contain
approximately 34,513 total square feet.
	 
	4.	 	Base Rent for the Leased Premises shall be amended and paid according to the following
schedule:





	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Base	 	Expansion Base	 	Total Monthly
	Period
	 	Rent/Month	 	Rent/Month	 	Base Rent
	May.1, 2007–Jul. 31, 2007
	 	$	19,560.54	 	 	$	0.00	 	 	$	19,560.54	 
	Aug.1, 2007–Jan. 31, 2008
	 	$	19,560.54	 	 	$	7,169.03	 	 	$	26,729.57	 
	Feb. 1, 2008–Jan. 31, 2009
	 	$	19,951.75	 	 	$	7,312.41	 	 	$	27,264.16	 
	Feb. 1, 2009–Jan. 31, 2010
	 	$	20,350.79	 	 	$	7,458.66	 	 	$	27,809.45	 
	Feb. 1, 2010–Jan. 31, 2011
	 	$	20,757.80	 	 	$	7,607.84	 	 	$	28,365.65	 
	Feb. 1, 2011–May 31, 2012
	 	$	21,172.96	 	 	$	7,759.99	 	 	$	28,932.95	 







	5.	 	Tenant’s Proportionate Share, as defined in the Lease,
shall be 73.48%.





 









 












	6.	 	PARKING. An additional thirty-two (32) non-exclusive parking stalls shall be provided for
a total of one-hundred twenty-two (122) non-exclusive parking stalls.
	 
	7.	 	Landlord shall provide the following Tenant Improvements to the Expansion Space:






	 	•	 	Replace carpet in front half of bay to match existing office.
	 
	 	•	 	Replace existing VCT with new VCT tile entirely in back half for lab area.
	 
	 	•	 	Replace ceiling tiles as needed throughout the entire area.
	 
	 	•	 	Ensure all lighting is in good working order, evenly and adequately spaced.
	 
	 	•	 	Demo existing cabinetry and sink in front half of office.
	 
	 	•	 	Add 3 new private offices/conference rooms in a location to
be determined.
	 
	 	•	 	Replace cabinetry and sink in break area adjacent to restrooms.
	 
	 	•	 	Repaint all walls to match current office and lab areas.
	 
	 	•	 	Electrical service shall be ample to serve the office and lab consistent with
Tenant’s current use in its existing Premises.
	 
	 	•	 	Open existing demising wall five (5) feet in an area to be determined to join
lab area to existing premises’ lab area.
	 
	 	•	 	Restrooms cleaned and all plumbing certified in good working order. Repair and
replace all damaged tile as necessary and repaint all walls.
	 
	 	•	 	Complete new demising wall and paint to match premises.
	 
	 	•	 	Service and certify that HVAC units serving the premises are in good working
order and replace the compressor units if required within one year following the
commencement date.
	 
	 	•	 	Tenant space plan shall be provided at Landlord’s expense.






	 	 	Other than the improvements outlined above, Tenant agrees to accept the Premises in its
“AS-IS” condition. Any additional improvements shall be completed at the Tenant’s sole cost
and expense and must receive the Landlord’s prior written approval.






	8.	 	OPTION TO RENEW. By written notice given to Landlord at least twelve (12) months prior to
the expiration of the term of this Lease, Tenant may elect to renew this Lease for one (1)
additional term of five (5) years. The renewal shall be upon all the terms and conditions of this Lease, except
the base rent shall be at the then prevailing market rate with annual increases for similar spaces
in the market area and provided further that Tenant shall have no further renewal options. If the parties cannot agree on the amount of
the prevailing market rate, the matter shall be submitted to binding arbitration in accordance
with the rules of the American Arbitrators Association. The arbitrator shall be a Real Estate
professional with at least (10) years experience in evaluating properties similar to this
building. The arbitrators determined market rate and annual increases shall take effect as of
the renewal date of the Lease. This Right of Renewal is not assignable to a sublessee or third
party.
	 
	9.	 	RIGHT OF FIRST REFUSAL. Tenant shall have the Right of First Refusal on any contiguous
space within the building for ten (10) days after written notice from Landlord of its
availability, provided Tenant is not in default under the terms and conditions of this Lease and provided
further that at least five (5) years remain on the Lease term or Tenant agrees to modify the Lease to
provide for not less than five (5) years on the total Leased premises. Tenant shall exercise this Right
of First




 









 






	 	 	Refusal by written notice to Landlord. In the event Tenant so notifies Landlord, then
Tenant shall commence rental payments on the date first indicated in Landlords notice and
Tenant shall accept such space in its current condition without obligation of Landlord to
make Leasehold improvements. If Tenant does not so notify Landlord within ten (10) days
thereafter, then Tenant shall be deemed to have waived its Right of First Refusal and
Landlord shall proceed to Lease the space. The Right of First Refusal is not assignable.
The base rental rate shall be at the then prevailing market rate and annual increases for
similar space in the market area. If the parties cannot then agree on the amount of the
prevailing market rate, then the matter shall be submitted to binding arbitration in
accordance with the rules of the American Arbitration Association.
	 
	10.	 	BROKERAGE. Landlord shall pay TaTonka Real Estate Advisors a commission on the expansion
premises in the amount of 5% of the base rent paid over the term. No commission shall be due
on the initial premises extended term from 1/31/12 to 5/31/12.




Except as modified herein, Landlord and Tenant hereby ratify and reconfirm each provision of
the existing Lease. The provisions of the Amendment shall supersede any inconsistent or
conflicting provisions of the original Lease.




	 	 	 	 	 	 	 	 	 	 	 
	LANDLORD	 	TENANT
	INDUSTRIAL EQUITIES GROUP LLC	 	CARDIOVASCULAR SYSTEMS, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:
	 	/s/ JAMES E. FLAHERTY	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	John N. Allen	 	 	 	 	 	 	 	 
	 
	Its:

	 	Managing Agent
	 	Its:
	 	CFO	 	 	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	Date:

	 	 	 	Date:
	 	2/26/07	 	 	 	 






 









 






EXHIBIT A

8,980 sq. ft. Total (8,937sf office, 43sf common)