(ii) Commencing on August 1, 2008, through and including July 31, 2009,Base Rent for the Premises shall be $134,482.20 per annum ($11,206.85 permonth); and     (iii) Commencing on August 1, 2009, through and including July 31, 2010, BaseRent for the Premises shall be $137,273.34 per annum ($11,439.45 per month),all of which Base Rent shall, in all cases, be paid at the time and in the mannerset forth in the Lease for the payment of Base Rent, it being understood and agreedthat, during the Expansion Term, each and every use of the term “Base Rent” in theLease shall mean Base Rent as amended in this subparagraph (b).     3. Amendments. From and after the Expansion Space Commencement Date:     (a) Tenant’s Proportionate Share as shown on the Data sheet shall be 18.19%;     (b) Exhibit A attached to the Original Lease shall be deleted and Exhibit Aattached to this Amendment substituted therefor.     4. Additional Agreements.     (a) The parties agree that, to the extent Tenant timely and properly exercises therenewal option granted by Paragraphs 5(d) and (e) of the Second Amendment, the lease of theExpansion Space shall be renewed as well, such that, during such renewal term, the Premisesshall consist of approximately 25,374 rentable square feet.     (b) Replacement of Tank; Restoration of Premises. Pursuant to Paragraph 3 ofthe Original Lease, Tenant installed an above-ground liquid nitrogen storage tank adjacentto the Premises, referred to in the Original Lease as the “Tank.” Tenant wishes to replacethe Tank with a larger tank (the “Replacement Tank”), as shown on the sketch attached tothis Amendment as Exhibit B and in accordance with plans attached to this Amendmentas Exhibit C, each made a part hereof. Landlord agrees to allow the installationand operation of the Replacement Tank, at Tenant’s sole cost and expense, subject to theterms and conditions of this Amendment and, upon installation, the Replacement Tank shall,for all purposes under the Lease, be the “Tank.” Such installation and operation shall besubject to the terms and conditions of Paragraph 3 of the Original Lease, including, withoutlimitation, the obligation, at Tenant’s sole cost and expense, of obtaining any necessarypermits from any governmental entity or agency with jurisdiction. At its sole cost andexpense, Tenant shall remove and dispose of the original Tank and its contents in accordancewith all applicable laws and regulations. Tenant shall defend, indemnify and hold Landlordharmless from and against any and all claims, actions, proceedings, damages, judgments,costs and expenses, including, without limitation, attorneys’ fees and costs arising from orrelated to, the removal and disposal of the original Tank and its contents and theinstallation, operation and removal of the Replacement Tank. Tenant’s obligations under theforegoing sentence shall be in addition to, and not instead of any indemnification and holdharmless agreement under the Lease. The provisions of this paragraph shall survive theexpiration or earlier termination of this Lease.
 

 
     (c) As partial consideration for Landlord’s agreement to allow the installation andoperation of the Replacement Tank, Tenant agrees, notwithstanding the provisions ofParagraph 7 of the Original Lease, upon the expiration or earlier termination of the Term(as the same may be extended pursuant to the Second Amendment), Tenant shall, at its solecost and expense (a) remove the Replacement Tank; and (b) return the Premises to thecondition in which they were delivered to Tenant on the Commencement Date, with Landlord’sWork (as shown on Exhibit B-1 to the Original Lease) completed, reasonable wear and tearexcepted. It is understood and agreed that the requirements of subparagraph (b) aboveinclude, without limitation, restoration of the two restrooms located in the Premises (tothe extent Tenant has removed said restrooms) in compliance with all then-applicable codesand regulations.     (d) Landlord and Tenant agree that on the Expansion Commencement Date, Tenant shallaccept the Expansion Space in its then AS-IS, WITH ALL FAULTS CONDITION. Tenantacknowledges that neither Landlord nor any agent or employee of Landlord has made anyrepresentation or warranty with respect to the Expansion Space or any other portion of theBuilding or the Project, including, without limitation, any representation or warranty withrespect to the suitability or fitness of the Expansion Space, the Premises, the Building orany other portion of the Project for the conduct of Tenant’s business in the Expansion Spaceor Premises.     (e) Each of the parties agrees that it has had no dealings with any broker other thanUnited Properties Brokerage, LLC, and each party hereby agrees to defend, indemnify and holdthe other harmless from and against all costs, expenses, attorneys’ fees or other liabilityfor commissions or other compensation or charges claimed by any broker or agent other thanthe brokers listed above claiming by or through Landlord or Tenant, respectively, withrespect to this Amendment.     (f) Landlord agrees that the plumbing and mechanical systems serving the ExpansionSpace shall be in good working order on the Expansion Space Commencement Date.     5. Reference to and Effect on the Lease.     (a) Upon the effectiveness of this Amendment, each reference in the Lease to “thisLease”, “hereunder”, “hereof”, “herein” or words of like import referring to the Lease shallmean and be a reference to the Lease as amended hereby.     (b) Except as specifically set forth above, the Lease remains in full force and effectand is hereby ratified and confirmed.
 

 
     (c) Wherever there exists a conflict between this Amendment and the Lease, theprovisions of this Amendment shall control.     6. Governing Law. This Amendment shall be governed by and construed in accordancewith the laws of the State of Minnesota.     7. Counterparts. This Amendment may be executed in counterparts, all of which, whentaken together, shall constitute one and the same original.     8. Headings. Section headings in this Amendment are included herein for convenienceof reference only and shall not constitute a part of this Amendment for any other purpose.     9. Time of Essence. Time shall be of the essence as to each and every provision ofthis amendment.SIGNATURE PAGE FOLLOWS
 

 
     IN WITNESS WHEREOF, this Amendment has been executed as of the date first written above.           TENANT:   LANDLORD:             ATS MEDICAL, INC.   ST. PAUL PROPERTIES, INC.             By:  /s/ Michael Kramer   By:  /s/ Michael D. Elnicky             Name: Michael Kramer   Name: Michael D. Elnicky  Title: CFO   Title: Asset Manager  
 

 
**EXHIBIT A****Depiction of Original Premises and Expansion Space**
 

 
**EXHIBIT B****Sketch Plan of Tank**
 

 
**EXHIBIT C****Plans for Tank**