Document:

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                                                                 EXHIBIT 10.1(b)

STATE OF COLORADO

COUNTY OF EL PASO

This Lease agreement, made and entered into by and between DUANE and DONNA
BASSE, hereinafter referred to as "Landlord", and SPECTRANETICS CORPORATION,
hereinafter referred to as "Tenant";

                                   WITNESSETH

1.    LEASED PREMISES AND TERM: In consideration of the obligation of Tenant to
pay rent as herein provided, and in consideration of the other terms and
covenants hereof, Landlord hereby demises and leases to Tenant and Tenant hereby
takes from Landlord certain premises situated within the County of El Paso,
State of Colorado, more particularly described as follows: APPROX. 24,576 SQ.
FEET CONSISTING OF THE BUILDING LOCATED AT 3305 NORTH CASCADE AVENUE, COLO.
SPRINGS, Colorado 80907, WITH A LEGAL DESCRIPTION OF: LOT 2, CASCADE INDUSTRIAL
PARK A SUB. OF LOT 1, BLOCK 1, COLO. SPRINGS, COLORADO together with all rights,
privileges, easements, appurtances and immunities belonging to or in any
pertaining to the said premises and together with the building and other
improvements erected, to have and hold the same for a term commencing on June
01, 2001, and ending 36 months thereafter.

2.    RENT AND SECURITY DEPOSIT:

   a) Tenant agrees to pay Landlord rent for said premises at the rate of
      (39,792.00) THIRTY THREE THOUSAND SEVEN HUNDRED NINETY TWO Dollars per
      quarter on a net, net, net rental basis. One such quarterly installment
      shall be due on June 01, 2001, and a like quarterly installment shall be
      due and payable on or before the first day of each succeeding calendar
      quarter during the hereby demised term. Tenant agrees at the time of
      execution of this lease, to deposit with the Landlord the cash sum of
      (1,433.60) FOURTEEN HUNDRED THIRTY THREE DOLLARS AND 60 CENTS as a
       security deposit.

   b) Other remedies for nonpayment of rent notwithstanding, if the quarterly
      rental payment is not received by Landlord on or before the tenth day of
      the month for which it is due, Tenant shall pay Landlord interest on the
      overdue amount at the rate of 1-1/2 percent per month from the day the
      amount became due until the date it actually is received by Landlord.

3.    TAXES AND INSURANCE: As additional rent, Tenant shall pay to Landlord on
the first day of each month 1/12 Tenant's pro rata share of the estimated tax on
the Leased Premises for the current year plus 1/12 Tenant's pro rata share of
the current premium for any liability or casualty insurance carried by Landlord
on the Leased Premises. If the actual real property tax is greater than that
estimated by Landlord, Tenant shall pay the excess amount within thirty days
after billing by Landlord. If the actual real property tax is less than
estimated by Landlord, Landlord shall refund the overpayment to Tenant within
thirty days after payment of the tax by Landlord. As used in this paragraph,
"real property tax" shall mean any form of assessment (both general and
special), levy, penalty, or tax (other than estate or inheritance tax) imposed
by any authority having direct or indirect power tax any legal or equitable
interest of Landlord in the Leased Premises, including any tax on rent (other
than income tax) in lieu of or in addition to normal real property taxes or
assessments. Any such billing by Landlord to Tenant that is not paid within 30
days shall bear interest at 1-1/2% per month. Tenant may, at its sole cost and
expense (in its name or in the name of Landlord, or in the name of both, as it
may deem appropriate) dispute and contest the real property tax, and is such
case, said disputed tax must be paid prior to being contested. Tenant
acknowledges the right to contest solely for a refund. Should the real property
tax contested be held valid, Tenant shall pay all items, court costs, attorney's
fees, interest and penalties relating thereto.

4.    CHARACTER OF OCCUPANCY: The demised premises shall be used only for the
purpose of receiving, storing, shipping, and selling products, materials and
merchandise made and/or sold by Tenant, and for such other lawful purposes as
may be incidental thereto. Tenant shall at its own cost and expense obtain any
and all licenses and permits necessary for such use. Tenant shall comply with
all government laws, ordinances and regulations applicable to the use of the
demised premises, and shall promptly comply with all government orders and
directives for the correction, prevention and abatement of nuisances in or
upon, or connected with the demised premises, all at Tenant's sole expense.
Tenant shall not permit the Leased premises to be used in any way which would,
in the opinion of Landlord, be extra hazardous on account of fire or otherwise
or which would an any way increase or render void the fire insurance on the
leased Premises.

5.    REPAIRS AND MAINTENANCE: Tenant shall, at its own expense, keep in good
repair and condition the interior and exterior of the Lease Premises. Tenant's
obligation shall extend to the entire Leased Premises, including but not
limited to the roof, exterior walls, gutters, glass, heating, ventilation and
air conditioning systems, plumbing, pipes, fixtures and other equipment,
except that Landlord shall correct any latent defects due to faulty
construction which may exist at the time Tenant takes possession of the Leased
Premises. Tenant also agrees to maintain at its sole expense all grounds,
landscaping and parking areas. Unless otherwise agreed by Landlord and Tenant,
all grounds, landscaping and parking area maintenance and repair shall be
performed by Landlord and Tenant shall be billed for its pro rata share of such
expense. If either Landlord or Tenant fails to perform any duty described
above, the other may give notices of such failure. If the duty is not permitted
by
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the responsible party within thirty days after notice (or within a reasonable
shorter period in the case of emergency), the other party may perform the repair
or maintenance work and charge the responsible party for any expense incurred.
The responsible party shall pay the expense incurred. Landlord and landlord's
agents and representatives shall have the right to enter and inspect the demised
premises at any time during reasonable business hours, for the purpose of
ascertaining the condition of the demised premises or in order to make such
repairs as may be required to be made by Tenant or Landlord under the terms of
this Lease. At the termination of this Lease, Tenant shall deliver up the leased
premises with all improvements located thereon in good repair and condition and
will deliver all keys therefore at the office of the Landlord.

6.   ALTERATIONS: Tenant shall not make major alterations, additions or
improvements to the demised premises without the prior written consent of
Landlord, which consent shall not be unreasonably withheld. Tenant may, without
the consent of Landlord but at its own expense and in a good workmanlike manner
make such minor alterations, additions or improvements or erect, remove or
alter such partitions, or erect such shelves, bins, machinery and trade
fixtures as it may deem advisable, without altering the basic character of the
building or improvements, and in each case complying with all applicable
government laws, ordinances, regulations and other requirements. At the
termination of this Lease, Tenant shall, if Landlord so elects, remove all
alterations, additions, improvements and partitions erected by Tenant and
restore the premises to their original condition, otherwise such improvements
shall be delivered up to Landlord with the premises. All shelves, bins,
machinery and trade fixtures installed by Tenant may be removed by Tenant at
the termination of this lease if Tenant so elects and shall be so removed if
required by Landlord. All such removals and restorations shall be accomplished
in a good workmanlike manner so as not to damage the primary structure of
structural qualities of the building and other improvements situated on the
demised premises.

7.   SIGNS: Tenant shall have the right to install signs as it may desire upon
the roof and exterior walls of said building subject to Landlord's prior
written approval and subject to any governmental laws, ordinances, regulations
and other requirements. Tenant shall remove all such signs at the termination
of this Lease. Such installations and removals shall be made in such manner as
to avoid injury, defacement, or overloading of the building and other
improvements.

8.   UTILITIES: Tenant shall pay all charges incurred for any utility services
metered to his demised premises or for Tenant's pro-rata share of the utility
services provided to the demised premises, and billed to Tenant by Landlord.

9.   LEASE ASSIGNMENT OR SUBLETTING: Tenant shall not have the right to assign
this Lease or to sublet the whole or any part of the demised premises, unless
prior approval of Landlord is obtained. Not withstanding any such assignment or
subletting Tenant shall at all times remain fully responsible and liable for the
payment of rent herein specified and for compliance with all of its provisions
and covenants of this Lease. Upon the occurrence of an "event of default" as
herein defined, if the demised premises or any part thereof are then assigned or
sublet, Landlord, in addition to any other remedies herein provided or provided
by law, may at its option collect directly from such assignee or subtenant all
rents becoming due to Tenant under such assignment, or sublease and apply such
rent against any sums due to it by Tenant hereunder, and no such collection
shall be construed to constitute a novation or a release of Tenant from the
further performance of its obligations hereunder. Landlord shall also have the
right to assign any of its rights under this Lease.

10.  INSURANCE, LIABILITY AND PROPERTY: Landlord shall not be liable to Tenant
or Tenant's employees, agents or visitors, or to any other person whomsoever,
for any injury to person or damage to property on or about the demised
premises, caused by the negligence or misconduct of Tenant, its agents,
servants or employees, or of any other person entering upon the premises under
express or implied invitation of Tenant, or caused by leakage or gas, oil,
water or steam or by electricity emanating from the premises, or due to any
other cause whatsoever, and Tenant agrees to indemnify Landlord and hold it
harmless from any loss, expense or claims arising out of any such damage or
injury. Tenant shall, throughout the demised term, at its sole cost and
expense, provide and keep in force with responsible insurance companies,
satisfactory to Landlord and to any mortgagee under a mortgage constituting a
lien upon the demised premises, public liability and property damage insurance,
the liability limits of said insurance shall be a minimum of $500,000.00 single
limit, protecting Landlord and such mortgagee as well as Tenant against
liability to any employees or servants of Tenant or to any other person
whomsoever arising out of or in connection with Tenant's use of the leased
premises or the condition of the leased premises. Tenant is to furnish Landlord
with certificate of liability. Landlord shall, at Tenants expense, procure and
maintain at all times during the term of this Lease a policy or policies of
insurance covering loss or damage to the premises (exclusive of Tenant's trade
fixtures and equipment), providing protection against all perils included
within the classification of fire, extended coverage, vandalism, malicious
mischief.
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11. DAMAGE OR DESTRUCTION: In the event improvements on the premises are damaged
by any casualty which is covered under an insurance policy required to be
maintained pursuant to Paragraph 10, then Landlord may at Landlord's option,
either (a) repair such damage as soon as reasonably possible at Landlord's
expense, in which event this Lease shall continue in full force and effect, or
(b) give written notice to Tenant within thirty (30) days after the date of
occurrence of such damage of Landlord's intention to cancel and terminate this
Lease as of the date of the occurrence of the damage. In the event Landlord
elects to terminate this lease, Tenant shall have the right within ten (10) days
after receipt of the required notice to notify Landlord in writing of Tenant's
intention to repair such damage at Tenant's expense, without reimbursement from
Landlord, in which event this Lease shall continue in full force and effect, and
Tenant shall proceed to make such repairs as soon as reasonably possible. If
Tenant does not give such notice within ten (10) day period this Lease shall be
cancelled and terminated as of the date of the occurrence of such damage. If the
premises are totally destroyed during the term of this Lease from any cause
whether or not covered by the insurance required under Paragraph 10 (including
any destruction required by any authorized public authority), this Lease shall
automatically terminate as of the date of such total destruction.

     If the premises are partially destroyed or damaged during the last six (6)
months of the term of this Lease, Landlord may at Landlord's option, cancel and
terminate this lease as of the date of the occurrence of the damage by giving
written notice to Tenant of Landlord's election to do so within thirty (30) days
after the date of such damage by fire or other cause, or to make any restoration
or replacement of any panelings, decorations, office fixtures, partitions,
railings, ceilings, floor covering, equipment, machinery or fixtures or any
other improvements or property installed in the premises by Tenant or at the
direct or indirect expense of Tenant. Tenant shall be required to restore or
replace same in the event of damage.

     If the premises are partially destroyed or damaged and Landlord or Tenant
repairs them pursuant to this Lease, the rent payable hereunder for the period
during which such damage and repair continues shall be abated in proportion to
the extent which Tenant's use of the premises is impaired. Except for abatement
of rent, if any, Tenant shall have no claim against Landlord for any damage
suffered by reason of such damage, destruction, repair or restoration. If
Landlord shall be obligated to repair or restore the premises and shall not
commence such repair or restoration within ninety (90) days after such
obligation shall accrue. Tenant may, at Tenant's option, cancel and terminate
this Lease by written notice to Landlord at any time prior to the commencement
of such repair or restoration. In such event this Lease shall terminate as of
the date of such notice.

12. EMINENT DOMAIN:
 a) If the whole or any substantial part of the demised premises should be
    taken for any public or quasi-public use under any governmental law,
    ordinance or by right of eminent domain or by private purchase in lieu
    thereof, this Lease shall terminate and the rent shall be abated during the
    unexpired portion of this Lease, effective when the physical taking of said
    premises shall occur. Separate awards for damage to the respective interests
    of Landlord and Tenant hereunder shall be made, and each shall be entitled
    to receive and retain such awards as shall be made to it, and the
    termination of this Lease shall not affect the rights of the respective
    parties to the awards.

 b) If less than a substantial part of the demised premises should be taken for
    any public or quasi-public use under any government law, ordinance or
    regulation, or by right of eminent, or by private purchase in lieu thereof,
    this Lease shall not terminate, but the rent payable hereunder during the
    unexpired portion of this Lease shall be reduced to such extent as may be
    fair and reasonable under all of the circumstances. Separate awards shall be
    made in such event for damages to the respective interests of Landlord and
    Tenant hereunder.

13. HOLDING OVER: Should Tenant, or any of its successors in interest, hold
over the leased premises, or any part thereof, after the expiration of the term
of this Lease, unless otherwise agreed in writing, such holding over shall
constitute and be construed as tenancy from month to month only, at a rental
equal to the rent paid the last month of the term of this Lease plus twenty per
cent (20%) of such amount.

14. TENANT DEFAULT: The following events shall be events of default by Tenant
under this lease:
  a) Tenant shall fail to pay any installment of the rent hereby reserved and
     such failure shall continue for a period of ten (10) days.
  b) Tenant shall fail to comply with any term, provision, or covenant
     of this Lease, other than the payment of rent, and shall not cure such
     failure within thirty (30) days.
  c) Tenant shall become insolvent, or shall make a transfer in fraud of
     creditors, or shall make an assignment for the benefit of creditors.
  d) Tenant shall file a petition under any section or chapter of the National
     Bankruptcy Act, as amended, or under any similar law or statute of the
     United States or any State thereof; or Tenant shall be adjudged bankrupt or
     insolvent in proceedings filed against Tenant thereunder.
  e) A receiver or Trustee shall be appointed for all or substantially of all
     the assets of Tenant.
  f) Tenant shall desert or vacate any substantial portion of the premises. Upon
     the occurrence of any such events of default, Landlord shall have the
     option to pursue any one or more of the following remedies without any
     notice of demand whatsoever:
     1) Terminate this Lease, in which event Tenant shall immediately surrender
        the premises to Landlord, and if Tenant fails so to do, Landlord may,
        without prejudice to any other remedy which it may have

<PAGE>
         for possession or arrearages in rent, enter upon and take possession of
         the leased premises and expel or remove Tenant and any other person who
         may be occupying said premises or any part thereof, by force if
         necessary, without being liable for prosecution or any claim of damages
         therefore; and Tenant agrees pay to Landlord on demand the amount of
         all loss and damage which Landlord may suffer by reason of such
         termination, whether through inability to relet the premises on
         satisfactory terms or otherwise, including any damages Landlord may
         incur because of special sums expended for fixing up premises for
         Tenant.

      2) Enter upon and take possession of the leased premises and expel or
         remove Tenant and any other person who may be occupying said premises
         or any part thereof, by force if necessary, without being liable for
         prosecution or any claim for damages therefore, and relet the premises
         and receive the rent therefore; and Tenant agrees to pay to Landlord on
         demand any deficiency that may arise by reason of such reletting.

      3) Enter upon the leased premises, by force if necessary, without being
         liable for prosecution or any claim for damages therefore, and do
         whatever Tenant is obligated to do under the terms of this Lease; and
         the Tenant agrees to reimburse Landlord on demand for any expenses
         which Landlord may incur in thus effecting compliance with Tenant's
         obligations under this Lease, and Tenant further agrees that Landlord
         shall not be liable for any damages, resulting to Tenant from such
         action, whether caused by negligence of Landlord or otherwise.

      Pursuit of any of the foregoing remedies shall not preclude pursuit of any
of the other remedies herein provided or any other remedies provided by law, nor
shall pursuit of any remedy herein provided constitute a forfeiture or waiver of
any waiver of any rent due to Landlord hereunder or of any damages accruing to
Landlord by reason of the violation of any of the terms, provisions and
covenants herein contained. No waiver by Landlord of any violation or breach of
any of the terms, provisions and covenants herein contained shall be deemed or
construed to constitute a waiver of any other violation or breach of any of the
terms, provisions, and covenants herein contained shall be deemed or construed
to constitute a waiver of any other violation or breach of any of the terms,
provisions, and covenants herein contained. Forbearance by Landlord to enforce
one or more of the remedies herein provided upon an event of default shall not
be deemed or construed to constitute a waiver of such default.

15.  ATTORNEY'S FEES. If on account of any breach or default by Tenant in
Tenant's obligations under the terms and conditions of this lease, it shall
become necessary for Landlord to employ an attorney to enforce or defend any of
Landlord's rights or remedies, hereunder, Tenant agrees to pay any reasonable
attorney's fees incurred by Landlord in such connection.

16. QUIET ENJOYMENT. Landlord warrants that it has full right to execute and to
perform this lease and to grant the estate leased, and, that Tenant, upon
payment of the required rents and performing the terms, conditions, covenants
and agreements contained in this Lease, shall peaceably and quietly have, hold
and enjoy the Leased Premises during the full term of this Lease as well as any
extension or renewal. However, Tenant accepts this Lease subject and subordinate
to any underlying lease, mortgage, deed or trust, or other lien presently
existing upon the Leased Premises. Landlord hereby is irrevocably vested with
full power and authority to subordinate Tenant's interest under this agreement
to any underlying lease, mortgage, deed of trust or other lien hereafter placed
on the Leased Premises, and Tenant agrees upon demand to execute additional
instruments subordinating this Lease as Landlord may require. If the interest of
the Landlord under this Lease shall be transferred by reason of foreclosure or
other proceedings for enforcement of any lien, deed of trust or mortgage on the
Leased Premises, Tenant shall be bound to the transferee (sometimes called the
"Purchaser") under the terms, covenants and conditions of the Lease for the
balance of the term remaining, and any extensions or renewals, with the same
force and effect as if the Purchaser were the Landlord under this Lease. Tenant
agrees to attorn to the Purchaser, as its Landlord, the attornment to be
effective and self-operative without the execution of any further instruments
upon the Purchaser succeeding to the interest of the Landlord under this Lease.

The respective rights and obligations of Tenant and the Purchaser upon the
attornment, to the extend of the then remaining balance of the term of this
Lease and any extensions and renewals, shall be and are the same as those set
forth in this Lease.

17. NOTICE ADDRESS: Each provision of this instrument or of any applicable
government laws, ordinances, regulations, and other requirements with reference
to the sending, mailing, or delivery of any payment by Landlord to Tenant or
with reference to the sending, mailing, or delivery of any notice or the making
of any payment by Landlord to Tenant or with reference to the sending, mailing,
or delivery of any notice of the making of any payment by Landlord to Tenant or
with reference to the sending, mailing, or delivery of any notice of the making
of any payment by Tenant shall be deemed to be complied with when and if the
following steps are taken.

     a) All rent and other payments required to be made by Tenant to Landlord
        hereunder shall be payable to Landlord in El Paso County, Colorado at
        the address hereinbelow set forth of at such other address as Landlord
        may specify from time to time by written notice delivered in accordance
        herewith.

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     b)   All payments required to be made by Landlord to Tenant hereunder shall
          be payable to Tenant at the address herein below set forth, or at such
          other address within the continental United States as Tenant may
          specify from time to time by written notice delivered in accordance
          within.

     c)   Any notice or document required or permitted to be delivered hereunder
          shall be deemed to be delivered whether actually received or not when
          deposited in the United States Mail, postage prepaid. Registered Mail,
          Return Receipt Requested, addressed to the parties hereto at the
          respective addresses set out opposite their names below, or at such
          other addresses as they have theretofore specified by written notice
          delivered in accordance herewith.

     Landlord  DUANE and DONNA BASSE         Tenant  SPECTRANETICS CORPORATION
               ---------------------------           ---------------------------
               P.O. BOX 9601                         96 TALAMINE COURT
               ---------------------------           ---------------------------
               COLO. SPRINGS, CO 80932               COLO. SPRINGS, CO 80907
               ---------------------------           ---------------------------

          If and when, included the term "landlord" as used in this instrument,
     there is more than one person, firm, or corporation, all shall jointly
     arrange among themselves for their joint execution of such a notice
     specifying some individual at some specific address in El Paso County,
     Colorado or any other location, for the receipt of notices and payments to
     Landlord; if and when, included within the term "Tenant" as used in this
     instrument, there is more than one person, firm, or corporation, all shall
     jointly arrange among themselves for their joint execution of such a notice
     specifying some individual at some specific address within the continental
     United States for receipt of notices and payments to Tenant. All parties
     included within the terms "Landlord" and Tenant", respectively, shall be
     bound by notices given in accordance with the provisions of this paragraph
     to the same effect as if each had received such notice.

18.  OTHER PROVISIONS:

     a)   See attached addendum for paragraph 20 through 23.

     b)   The terms, provisions and covenants and conditions contained in this
          Lease, shall apply to, inure to the benefit of, and be binding upon
          the parties hereto and upon their respective successors in interest
          and legal representatives except as otherwise herein expressly
          provided. Words of any gender used in this Lease shall be held and
          construed to include any other gender, and words in the singular
          number shall be held to include the plural, unless the context
          otherwise require.

19.  CORPORATE RESOLUTION: If this instrument is executed by a corporation, such
     execution has been authorized by a duly adopted resolution of the Board of
     Directors at such corporation and copy thereof furnished to Landlord.

Executed the 1st day of June 2001.

LANDLORD                                     TENANT:

BY:  /s/ DUANE H. BASSE                      BY:  /s/ LAWRENCE E. MARTEL
   ---------------------------------            --------------------------------
BY:  /s/ DONNA BASSE                         Title:   V.P. Operations
   ---------------------------------               -----------------------------

                                             BY:
                                                --------------------------------
                                             Title:
                                                   -----------------------------

<PAGE>

                               ADDENDUM TO LEASE

20. RENEWAL OPTION: Tenant shall have the right to renew this Lease for a period
of one (1) additional year at the expiration of the term hereof at a rental rate
to be hereinafter determined, subject to all conditions and agreements herein
contained; provided, however, that Tenant shall notify the Landlord of his
election to renew the Lease by giving Landlord written notice of such election
on or before six (6) months prior to the expiration of the original term
hereof.

21. All snow and ice removal shall be Tenant's responsibility and shall be at
Tenant's expense.

22. Landlord grants to Tenant first right of refusal for the purchase of the
properties located at:        3305 North Cascade Avenue
                              and
                              3337 North Cascade Avenue
                              Colo. Springs, Colorado 80907

23. This renewal Lease will need to be signed by an executive officer of the
corporation.<PAGE>
                                                                 EXHIBIT 10.2(b)

                                COMMERCIAL LEASE

     THIS LEASE AGREEMENT made this 8th day of December, 2000, by and between
John Sanders, hereinafter called "Landlord: and Spectranetics Corporation,
hereinafter called "Tenant".

1.   LEASED PREMISES: Landlord hereby leases to Tenant, and Tenant hereby
leases from Landlord, the premises known as 144 and 148 Talamine Court
containing approximately 4800 square feet.

2.   TERM: To have and to hold the leased premises unto Tenant for a term of
36 months commencing on the 1st day of January, 2001, and ending on the 31st
day of December, 2003, unless sooner terminated as hereinafter provided. The
tenant has the option to renew for one additional year with a six percent
increase in rents.

      LANDLORD shall not have any liability for loss or damage to Tenant's work
or to fixtures, equipment or other property of Tenant installed or placed by
Tenant in the leased premises. Any occupancy by Tenant prior to beginning of the
term, even though rent free, shall in all other respects be the same as that of
a Tenant under this lease and by such occupancy, Tenant shall be bound by all
terms of this lease. By occupying the leased premises, as a Tenant, or to
complete Tenant's work, install fixtures, facilities or equipment, or to perform
finishing work. Tenant shall be deemed to have accepted the same and
acknowledged that the leased premises are in the condition required by the
Landlord's covenants. Occupancy by the Tenant, before the term, will be prorated
to the number of days of occupancy, unless rent free.

3.   RENT: Tenant agrees to pay the total sum of $87,864 in U.S. dollars for a
three year lease plus $32,860 if the tenant agrees to extend the lease one
year. This is a gross lease and the Landlord is responsible for the exterior of
the building, taxes, land, water, exterior utilities and fire
insurance on the structure only. All other utilities, additional tenant finish,
garbage and other services are the responsibility of the Tenant. The rent
shall be paid in equal, monthly installments, IN ADVANCE, on or before the 1st
day of each month, as follows:

     1st Year Monthly Rental Amount: $2300   Annual: $27,600
     2nd Year Monthly Rental Amount: $2438   Annual: $29,256
     3rd Year Monthly Rental Amount: $2584   Annual: $31,008
     4th Year 1 year extension Rent: $2739   Annual: $32,868

to the Landlord at this address of: 154 Talamine Court, Colorado Springs, CO.
80907. On the anniversary date of this lease agreement and every year
thereafter until the end of this agreement, at six (6) percent increase in
rents will
<PAGE>
be added to the prior years rental amount. One monthly installment of the rent
shall be due and payable on or before the first day of the execution of this
lease by the Tenant for the first month's rent and a like monthly installment
shall be due and payable on or before the first day of each calendar month
succeeding the "commencement date" during the term.

(a).      This lease is expressly contingent upon Tenant providing the landlord
an acceptable financial statement.

(b).      All expenses incurred by the Tenant, are the sole responsibility of
the Tenant. If, however, the Tenant creates a situation whereby the Landlord
incurs expenses brought on by the Tenant's neglect or the Tenant causes the
property to be encumbered in any way, the Landlord shall have the right to call
these expenses as rents and in the event of nonpayment, Landlord shall have all
the rights and remedies as herein provided for failure to pay rent.

(c).      The Tenant is responsible for ALL Tenant finish, and cannot encumber
or cause to encumber the premise or any adjoining premises or any other
premises not rented by the Tenant.

(d).      There is a Ten (10) days "grace" period after the first of the month
to pay rents.

(e).      LATE CHARGES: In the event the rent provided for herein is not
received by Landlord on the first day of each month and extends beyond the
"grace period" for each month, a late charge equal to one quarter (1/4) percent
of the monthly rental amount shall be due and payable to Landlord for each day
of delinquency up to 25 days and one (1%) over 25 days. If rent is mailed,
Tenant is responsible for loss or mail delay. Nothing contained herein shall
obligate the Landlord to accept the rent after the "grace period", nor does the
Landlord waive any of it's legal rights which may be available for default of
Tenant by inclusion of this provision in this Commercial Lease.  In the event
Tenant pays rent by check and the check is not honored by the Landlords bank,
there will be a charge of thirty ($30) dollars for each returned check, in
addition, Tenant remains responsible for current rents and any additional
charges incurred by the Landlord for later rents.

4.        USAGE: Tenant warrants and represents to Landlord that the premises
shall be used and occupied only for the purposes of Light Manufacturing and/or
Office use. Use of toxic chemicals is not permitted. Tenant shall not create
any nuisance or otherwise interfere with, annoy or disturb any other Tenant.
Tenant shall not commit, or suffer to be committed, any waste on the premises,
nor shall Tenant permit the premises to be used in any unlawful activity or
way which would, in the opinion of the Landlord, be extra hazardous. Tenant
accepts the Premises subject to all matters of record and to all applicable
laws.

<PAGE>
5. Tenant shall arrange for and pay all charges for janitorial services
performed in or on the Premises during the Term of this Lease, and at such times
as Landlord shall require so as to maintain the quality and appearance of the
building both inside and out.

6. SERVICES: Tenant shall pay all charges for gas, water, sewer, electricity,
and other utilities used by Tenant on the Premises during the term of this
lease. If possible, all such utilities shall be separately metered and billed in
Tenant's name. In the event that a separate itemization is not available, Tenant
shall pay it's pro rata portion based on the square footage or other pro rata
method deemed equitable by the Landlord. Tenant shall be responsible for all
telephone and telecommunication charges. (a) Landlord's failure to any extent
to furnish these defined services, or any cessation thereof, shall neither
render Landlord liable in any respect for damages either person or property, be
construed as an eviction or partial eviction of Tenant, work as an abatement of
rent, nor relieve Tenant from fulfillment of any covenant in this lease.

7. REPAIRS AND MAINTENANCE: Unless otherwise expressly provided, Landlord shall
maintain only the roof, foundation, common parking area, common landscaped
areas, heating and air conditioning and soundness of the exterior walls
(excluding all exterior glass and exterior or overhead doors) of the building
in good repair and condition except for reasonable wear and tear. Tenant shall
pay for the repair of any damage caused by the negligence or default of Tenant
or Tenant's agents, invites and employees. Landlord shall not be liable to
Tenant except as expressly provided in this lease, for any damage or
inconvenience, and Tenant shall not be entitled to any abatement or reduction
of rent be reason of any repairs, alterations or additions made by Landlord
under this lease.

(a). Tenant shall forthwith at its expense replace any cracked or broken glass
used in the leased premises.

(b). Tenant, at its own expense, shall maintain all fixtures, lighting
fixtures, floor covering, interior painting and decorating in a good clean,
safe and wholesome condition at all times during the term of this lease.

(c). Tenant is to return the premises to the Landlord at the termination of this
lease in as good of condition as existed at the "commencement date" of this
lease, ordinary wear and tear excepted as defined by the landlord. The cost for
any repairs or maintenance work to bring the premises to such condition shall be
borne by the Tenant and full or partial remedy may come from the Tenants
"deposit".

8. COMMON AREAS: The term "common areas" shall mean all that portion of
building improvements, grounds, parking, and landscaping which is constructed
for lease to Tenants or

<PAGE>
hereafter leased to Tenants. Tenant shall not at any time interfere with the
rights of Landlord and other tenants, and their employees, customers and
invites, to use any part of the common areas. The Landlord has the right to
erect "for rent" or "for sale" signs on the common area as well as add any
improvements as required by the Landlord.

9. ALTERATIONS AND IMPROVEMENTS: Written approval by the Landlord for any and
all alterations and improvements is required. Landlord may at its option,
require Tenant, at the expense of the Tenant, to remove any physical additions
and/or repair any alteration in order to restore the Premises to the condition
existing at the time Tenant took possession.

10. LIENS ON PREMISES: Tenant shall not permit any lien to be placed and remain
on the Premises, building or common areas as a result of its conduct for any
reason for a period longer than thirty (30) days. Tenant shall also post notice
pursuant to Colorado Revised Statues, 1973, as amended, 38-22-101, et. seq.
negating Landlord's liability for any mechanic's liens resulting from any work,
labor or materials performed for or delivered at Tenants request for
incorporation into the premises.

11. CONDEMNATION: If, during the term of this lease, all or a substantial part
of the premises are taken for any public or quasi-public use under any
governmental law, ordinance or regulation, or by right of eminent domain or by
purchase in lieu thereof, and the taking would prevent or materially interfere
with the use of the premises by the Tenant for the purpose for which they are
then being used, this lease shall be terminated and all rents shall be abated
during the unexpired portion of the lease effective on the date physical
possession is taken by the condemning authority. Tenant agrees that it shall
have no claim to the condemnation award.

12. SECURITY DEPOSIT: Tenant, in lieu of the tenant finish work done by the
tenant, hereby has the security deposit waived.

13. INSURANCE: The Landlord shall at all times during the Term of the lease,
maintain a policy or policies of insurance as Landlord deems appropriate.
Landlord shall not be obligated in any way or manner to insure any personal
property of the Tenant. Tenant shall, at Tenant's expense, maintain such other
liability insurance as Tenant deems appropriate to protect Tenant and Landlord
from loss and the Landlord shall be named as "additional insured" on the
tenants liability policy. A current copy of the Tenant's insurance policy is to
be maintained by the Landlord.
<PAGE>
14.  WAIVER OF SUBROGATION: Anything in this lease to the contrary
notwithstanding, Landlord and Tenant hereby waive and release each other of and
from any and all rights of recovery, claim, action or cause of action against
each other, their agents, officers and employees, for any loss or damage that
may occur to the premises. Improvements to the common areas or building of
which the premises are a part, or personal property (building contents) within
the building, by reason of fire or the elements regardless of cause or origin,
where such loss or damage is insured against and subject to an insurance policy
in force at the time of such loss or damage. Because this paragraph will
preclude the assignment of any claim mentioned herein by way of subrogation or
otherwise to an insurance company or any other person, each party to this lease
agrees immediately to give to each insurance company which has issued to it
policies of insurance covering all risk of direct physical loss, written
notice of the Terms of the mutual waivers contained in this paragraph, and to
have the insurance policies properly endorsed, if necessary, to prevent the
invalidation of the insurance coverages by reason of the mutual waivers
contained in this paragraph.

15. INDEMNITY: Tenant shall indemnify and hold harmless Landlord from and
against any and all claims arising from Tenant's use of the premises, or from
the conduct of Tenant's business or from any activity, work or things done,
permitted or suffered by Tenant, in or about the premises or elsewhere. In case
any action or proceeding be brought against Landlord by reason of such claim,
Tenant shall defend the same at Tenant's expense by counsel satisfactory to
Landlord. Tenant hereby assumes all risk of damage to property or injury to
persons in, upon or about the premises arising from any cause and Tenant hereby
waives all claims in respect thereof against Landlord. Tenant hereby agrees
that Landlord shall not be liable for injury to Tenant's business or any loss
of income therefrom or damage to the goods, ware, merchandise or other property
of Tenant, Tenant's employees, invites, customers, or any other person in or
about the premises; nor shall Landlord be liable for injury to the person of
Tenant, Tenant's employees, agents, or contractors, whether such damage or
injury is cause by or results from fire, explosion, steam, electricity, gas,
water, rain, or from the breakage, leakage, obstruction, or the damage or
injury results from conditions arising upon the premises or upon other portions
of the new building of which the premises are a part, or from other sources or
places, and regardless of whether the cause of such damage or injury or the
means of repairing the same is inaccessible to Tenant.

16. FIRE OR OTHER CASUALTY: In the case the building shall be partially or
totally destroyed by fire or other casualty insurable under standard fire
insurance so as to become
<PAGE>
partially or totally untenable, the same shall be repaired as speedily as
possible at the expense of Landlord, unless Landlord shall elect not to
rebuild, as hereinafter provided, and an equitable part of the rent shall be
abated until so repaired based upon the time and to the extent the leased
premises are untenable. If the Landlord determines not to rebuild or repair
premises of the Tenant, the Landlord will notify the Tenant of those intentions
in writing within 60 days of the casualty loss. In no event in the case of any
such destruction shall Landlord be required to repair or replace Tenant's stock
in trade, lease hold improvements, fixtures, equipment furnishings, or floor
coverings. Tenant covenants to make such repairs and replacements and to
furnish Landlord, on demand, evidence of insurance assuring its ability to do
so.

17. LANDLORD'S RIGHT OF ENTRY: Landlord shall during the term thereof, have the
right, at all reasonable hours, to enter and inspect the premises, with or
without the Tenants approval.

18. ASSIGNMENT OR SUBLEASE: Tenant shall not assign or in any manner
transfer this lease or any interest therein, nor sublet said leased premises or
any part or parts hereof, nor permit occupancy by anyone without the prior
written consent of the Landlord. Consent shall not be unreasonably withheld by
Landlord. In the event of any subletting, the Tenant shall nevertheless at all
times, remain fully responsible and liable for rent payments and for compliance
of with all its other obligations under the terms, provisions and covenants of
this lease. In the event of any assignment of this lease, the Tenant shall be
liable only for the first thirty (30) days of rent of the pre-approved
assignee. Any collection directly by Landlord from the assignee or subtenant
shall not be construed to constitute a or release of Tenant from the further
performance of it's obligations under this lease.

19. DEFAULTS: REMEDIES: PAYMENTS: Time is of the essence in all matters
concerning this lease. Any delay on the part of Landlord in exercising any
right or insisting upon the performance of any obligation of Tenant, shall not
constitute a waiver of Landlord's right to exercise these rights or insist upon
these performances in the future:

     (a) Events of Default. The following events shall be events of default by
Tenant under this lease:

          (1) Tenant shall have failed to fully pay when due any installment of
rent or any other charge provided herein.

          (2) Tenant fails to comply with any other provision or provisions of
this lease.

          (3) Tenant voluntary or involuntary petitions for relief pursuant to
the bankruptcy or insolvency laws of the United States, or of any state, is
filed by the Tenant or guarantor.
<PAGE>
     (4) Tenant has the attachment, seizure, levy upon or taking possession by
any receiver custodian, or assignee for the benefit of creditors of any portion
of the property of Tenant or guarantor.

     (5) Tenant or guarantor makes an assignment for the benefit of creditors.

     (6) An action against the Tenant or guarantor which effects its financial
condition adversely or materially.

(b) Notice of Default. In the event of a default pursuant to Section (a) above,
Landlord may, by serving three (3) days written notice upon Tenant, elect either
to:

     (1) Cancel and terminate this lease, or

     (2) Terminate Tenant's right to possession only without termination of this
lease.

(c) In the event Landlord delivers to Tenant a Notice of Default, which notice
does not state that Landlord has elected to Terminate the lease, Landlord may at
its option enter the Premises and take and hold possession thereof, until Tenant
has met its obligation as stated by Colorado Statutes. All rights of a Landlord
may be exercised by the Landlord at the discretion of the Landlord.

(d) Landlord shall have the right to cancel and terminate this lease by a
service five (5) day written notice on Tenant of such further election. Landlord
shall have the right to pursue any remedy at law or in equity that may be
available to Landlord.

(e) In the event Landlord delivers to Tenant a Notice of Default which states
that Landlord has elected to Terminate the Lease, Landlord shall be entitled to
recover from Tenant liquidated damages in an amount equal to the amount of rent
which would be payable under the terms of the lease for the remainder of the
lease term if the lease had not been terminated.

(f) Tenant's property. If Tenant shall fail to remove any of Tenant's personal
property within ten (10) days of receipt of a Notice of Default, or upon the
Termination of this lease for any cause whatsoever, the Landlord at its option,
may remove the same in any manner that it shall choose, and store the said
effect without liability to the Landlord for loss thereof in any public or
private warehouse, and the Tenant agrees to pay Landlord on Demand, and all
expenses are incurred in such removal, including court costs and attorney's fees
and storage charges on such personal property for any length of time the
personal property shall be in storage; or the Landlord at its option, without
notice, may sell said personal property, or any of the same, at a private sale
and without legal process, for such prices as the Landlord may obtain, and apply
the proceeds of such sale upon any amounts due under this lease from the Tenant
to the Landlord and upon the expenses incidental to the removal, storage, and
sale of the personal property, rendering the surplus, if any, to the Tenant.

(g) Lien. Landlord is hereby given a lien that is subordinate to existing lien
positions at the "commencement
<PAGE>
date". Further, the Tenant agrees to secure this lease with equipment, fixtures
and furniture of "The Perfect Bindery" and shall personally guarantee against
loss of rents and the terms and conditions of this lease.

      (f) Landlord's Default. Should Landlord be in default under the terms of
this lease, Landlord shall have five (5) days in which to cure the same after
written notice to the Landlord by the Tenant is received.

     (g) Right of Entry. In the event of Tenant's default hereunder, Landlord
may, in addition to all other rights and remedies, re-enter the premises, change
any and all of the locks on doors and other barriers, and distrain, seize,
remove or store, all property upon the premises. Tenant hereby agrees that such
acts by Landlord shall not constitute an eviction, constructive otherwise, shall
not terminate this lease, and shall not render the Landlord liable for trespass,
forcible entry and detainer, conversion.

20. ACTS OF GOD. Landlord shall not be required to perform any covenant or
obligation in this lease, or be liable in damages to Tenant, so long as the
performance or non-performance of the covenant or obligation is delayed, caused
by or prevented by an act of God or force majeure. Act of God and Force Majeure
shall mean strikes, lockouts, sit-downs, material or labor restriction, delays
by any municipal, governmental and/or quasi-governmental authority, unusual
transportation delays, material or supply shortages or back order, riots,
floods, freezing, wash-outs, explosions, earthquakes, fire, storms, acts of the
public enemy, acts of vandals, wars, insurrections, delays by utility
suppliers, and any other cause not reasonably within the control of the
Landlord and which by the exercise of due diligence Landlord is unable, wholly
or in part, to prevent or overcome.

21. ATTORNEY'S FEES. In the event Tenant defaults in the performance of any of
the terms, covenants, agreements or conditions contained in this lease, and
Landlord places in the hands of an attorney the enforcement of all or any part
of this lease, the collection of any rent due or to become due or the recovery
of the possession of the premises, Tenant agrees to pay Landlord's attorney
fees. In the event, suit is brought against the Landlord and Landlord is found
to be "at fault", Landlord shall pay for Tenants Attorney's Fees.

22. HOLDING OVER. In the event of holding over by the Tenant after the
expiration or termination of this lease, the holdover shall be as a Tenant at
will and all of the terms and provisions of this lease shall continue in force
except that rents will be an amount equal to 1-1/2 times the rent which would
have been payable by Tenant had the hold over period been part of the original
term of this lease.
<PAGE>
23. RIGHTS OF FIRST MORTGAGEE OR SUBSEQUENT TRANSFEREES. Tenant accepts this
lease subject and subordinate to any recorded deed conveying title, first or
other mortgage deed of trust lien presently existing or hereafter created upon
the premises, building and/or common areas. Tenant agrees upon demand and in a
reasonable time period to execute additional instruments subordinating this
lease as Landlord may require.

24. ESTOPPEL CERTIFICATES AND ATTORNMENT. Tenant agrees to furnish promptly,
from time to time, upon request of Landlord or Landlord's mortgages a statement
certifying that the Tenant is in possession of the premises: the premises are
acceptable: the lease is in full force and effect: the lease is unmodified:
Tenant claims no present charge, lien, or claim of offset against rent: the
rent is paid for the current month, but is not prepaid for more than one month
and will not be prepaid for more than one month in advance: three is no
existing default by reason of some act or omission by Landlord: and such other
matters as may be reasonably required for foreclosure, or in the event of
exercised of the power of sale under any mortgage or deed of trust made by the
Landlord under this lease. No mortgagee shall be liable for any act or omission
of Landlord, be bound by any payment of rent, additional rent or any other
charge made more than thirty (30) days in advance of the due date thereof, or
be bound by any assignment, surrender, termination, cancellation, amendment or
modification of the lease without the express written consent of the mortgagee.

25. GOVERNING LAW. This lease is made and delivered in the State of Colorado
and shall be interpreted, construed, and enforced in accordance with the laws
thereof.

26. SUCCESSORS. This lease shall be binding upon and inure to the benefit of
Landlord and Tenant and their respective heirs, personal representatives,
successors and assigns.

27. TIME OF ESSENCE. Time is of the essence in this lease.

28. MISCELLANEOUS. The captions appearing in this lease are inserted only as a
matter of convenience and in no way define, limit, construe or describe the
scope or intent of such paragraph. If any provision of this lease shall ever be
held to be invalid or unenforceable, such invalidity or unenforceability shall
not affect any other provision of this lease, and all other provisions shall
continue in full force and effect.

29. NON WAIVER. The receipt by Landlord of rent with knowledge of the breach of
any covenant of this lease shall not be deemed a waiver of such breach and no
provision of this lease shall be deemed to have been waived by Landlord unless
such waiver be in writing signed by the Landlord.

<PAGE>
30. NOTICE: All rent and other payments required to be made by Tenant shall be
payable to Landlord at the address set forth below, or at such other address as
Landlord may specify from time to time by written notice.

     Landlord: American Investment Management Co.
               154 Talamine Court
               Colorado Springs, Co. 80907

Any notices will be mailed to the address set forth below, or at such other
address as Tenant may specify from time to time by written notice.

     Tenant:

31. Tenants lease, upon written request to the landlord, can be extended
another 12 months beyond the stated period of this lease agreement with a two
and one half (2.5) percent increase in rents for that period.

3.2. ENTIRE AGREEMENT AND LIMITATION OF WARRANTIES: It is expressly agreed by
Tenant, as a material consideration for the execution of this lease; that this
lease, with the specific references to written extrinsic documents, is the
entire agreement of the parties; that there are, and were, no verbal
representations, warranties, understandings, stipulations, agreements or
promises pertaining to this lease or the expressly mentioned written extrinsic
documents not incorporated in writing in this lease. Landlord and Tenant
expressly agree that there are and shall be no implied warranties which extend
beyond those expressly set forth in this lease. It is likewise agreed that this
lease may not be altered, waived, amended or extended except by an instrument
in writing signed by both Landlord and Tenant. There are a total of ten (10)
pages in this lease.

Signed in County of El Paso, City of Colorado Springs, State of Colorado on
this 8th day of December, 2000,

Landlord:                                  Tenant:

By John Sanders                            By Larry Martel
  ------------------------------             -----------------------------
                                           Title:  V.P. Operations
                                                 -------------------------

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