Document:

Ex 10.58 SVB Amendment

Exhibit 10.58

Fourth Amendment
to
Loan And Security Agreement
THIS FOURTH AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into as of June 26, 2014, by and between SILICON VALLEY BANK (“Bank”) and CARDIOVASCULAR SYSTEMS, INC., a Delaware corporation (“Borrower”), whose address is 651 Campus Drive, Saint Paul, Minnesota 55112.
Recitals
A.    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of March 29, 2010 (as the same may be amended, modified, supplemented or restated in writing from time to time, the “Loan Agreement”).  
B.    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.
C.    Borrower has requested that the Loan Agreement be amended and supplemented as more fully set forth herein.   
D.    Bank has agreed to so amend and supplement the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations, warranties and agreements set forth herein.
Agreement
Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:
		
	1.
	Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Modifications Regarding Loan Documents.  The Loan Agreement is amended as set forth below, effective on the date hereof (except as may be otherwise specifically provided below):

2.1    Revolving Line Maturity Date.  The definition of “Revolving Line Maturity Date” in Section 13.1 of the Loan Agreement, is hereby amended to read as follows:

“ ‘Revolving Line Maturity Date’ is September 30, 2014.”
2.2    Revolving Line Interest Rate.  Section 2.3(a)(i) of the Loan Agreement currently reads as follows: 
(i)    Advances.  Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to 1.25 percentage points above the Prime Rate, provided that the interest rate in effect on 

any day shall not be less than 4.50% per annum, which interest shall be payable monthly.
Said Section 2.3(a)(i) is hereby amended to read as follows:
(i)    Advances.  Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the Prime Rate, which interest shall be payable monthly.
		
	3.
	Limitation of Amendments.

3.1    The consents and amendments set forth in this Amendment are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

3.2    This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

4.Representations and Warranties.  To induce Bank to enter into this Amendment, Borrower hereby represents, warrants and agrees as follows:

4.1    Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct in all material respects as of such date), and (b) no Event of Default has occurred and is continuing;

4.2    Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

4.3    The organizational documents of Borrower previously delivered to Bank remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

4.4    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized; 

4.5    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;
 
4.6    The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption 

by any governmental or public body or authority, or subdivision thereof, binding on Borrower, except as already has been obtained or made; and

4.7    This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors' rights.

5.Expenses.  Without limitation on the terms of the Loan Documents, Borrower agrees to reimburse Bank for all its reasonable costs and expenses (including reasonable attorneys' fees) incurred in connection with this Amendment.  Bank is authorized to charge said fees, costs and expenses to Borrower's loan account or any of Borrower's deposit accounts maintained with Bank.

6.Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

 [Signatures on Next Page]
 

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

	
		
	

SILICON VALLEY BANK

By:  /s/ Nick Honigman
Name:  Nick Honigman
Title:  Vice President
	

CARDIOVASCULAR SYSTEMS, INC. 

By:  /s/ Jeffrey S. Points
Name:  Jeffrey S. Points
Title: Sr. Director and ControllerEx 10.59 Dev Services Agmt

Exhibit 10.59

DEVELOPMENT SERVICES AGREEMENT

THIS DEVELOPMENT SERVICES AGREEMENT (“Agreement”) is made this 11th day of June, 2014, between RYAN COMPANIES US, INC., a Minnesota corporation (“Ryan”), and CARDIOVASCULAR SYSTEMS, INC., a Delaware corporation (“CSI”).

RECITALS:

		
	A.
	Ryan is a general contractor and developer of commercial real estate projects. 

		
	B.
	CSI and Ryan have entered into a Design-Build Cost Plus Construction Contract dated of even date herewith (the “Construction Contract”) for the construction of an approximately 125,000 square foot office/lab/warehouse facility and associated site improvements to be located on approximately 10 acres of certain real property legally described on Exhibit A attached hereto and incorporated herein by reference (the “Land”) in the City of New Brighton, Ramsey County, Minnesota (the Land, building improvements and associated site improvements are collectively referred to herein as the “Project”).  

		
	C.
	CSI, Ryan and the City of New Brighton (the “City”) also have entered into that certain Contract for Private Redevelopment dated June 11, 2014 (the “Redevelopment Contract”) relating to the construction of the Project. 

		
	D.
	In addition to Ryan’s general contracting services to be provided under the Construction Contract, CSI wishes to engage Ryan to perform certain development services to facilitate development of the Project. 

NOW, THEREFORE, for good and valuable consideration, the parties hereto agree as follow: 

		
	1.
	Recitals.  The above recitals shall constitute an integral part of this Agreement. 

		
	2.
	Development Services.  CSI hereby engages Ryan to perform the “Development Services” as described in Exhibit B attached hereto, and Ryan hereby accepts such engagement, subject to the terms of this Agreement. 

		
	3.
	Development Fee.  Subject to the terms and conditions of this Agreement, CSI agrees to pay to Ryan for performance of the Development Services an amount equal to the sum of (i) 3.25% (the “Base Percentage Fee”) of the Adjusted Total Project Costs (as defined below), which percentage of costs is currently estimated at $593,325.00 for Development Services, (ii) five percent (5%) of the Adjusted Total Project Costs, (iii) legal fees incurred by Ryan in connection with this Agreement and Ryan’s performance of the Development Services in an amount not to exceed $30,000.00 (the “Ryan Legal Fees”), (iv) title insurance commitment fees incurred by Ryan in connection with this Agreement in an amount not to exceed $16,279.00 (the “Title Fees”), (v) permit fees required for the performance of the Development Services that are not included in the Contract Sum (the “Permit Fees”) and (vi) park dedication fees in an amount not to exceed $122,780.00 (the “Park Dedication Fee”; collectively, the “Development Fee”).  Adjusted Total Project Costs shall be equal to the sum of (a) the Contract Sum as defined under the Construction Contract, (b) the purchase price of the Land paid by CSI to the City under the Redevelopment Agreement in the amount of $500,000, (c) the Ryan Legal Fees, (d) the Title Fees, (e) the Permit Fees and (f) the Park Dedication Fee; provided, however, that the 

following items shall be excluded:  (x) brokerage commissions, and (y) any amounts paid directly by CSI to third parties, including without limitation, any legal fees or design fees paid directly by CSI to third parties (the “Adjusted Total Project Costs”).  The Development Fee shall be paid as follows: (a) fifty percent (50%) of the Base Percentage Fee, shall be due upon the closing date of CSI’s purchase of the Land from the City pursuant to the terms of the Redevelopment Agreement, (b) eight (8) installments of the balance of the Base Percentage Fee shall be paid monthly, concurrently with the monthly amounts payable by CSI to Ryan under the Construction Contract, and (c) the balance of the Development Fee and the five percent (5%) charge shall be due in full upon and subject to Substantial Completion of construction of the Project by Ryan, as defined under the Construction Contract.  

		
	4.
	Broker’s Commission.  CSI has entered into a separate written agreement with the TaTonka Real Estate Advisors, Inc. (“TaTonka”), pursuant to which CSI has agreed to pay TaTonka and Colliers International a broker’s commission subject to the terms of such agreement.  Ryan shall have no responsibility for the payment of any commissions in connection therewith.  CSI agrees to indemnify and hold Ryan harmless from all claims, damages, costs or expenses for any such commissions resulting from CSI’s actions or agreements regarding the Project.  

		
	5.
	Acquisition Termination.   In the event the closing on the Land by CSI in accordance with the terms of the Redevelopment Agreement does not occur on or before August 1, 2014 for reasons other than the failure of Ryan to perform its obligations under the Redevelopment Agreement, CSI agrees to reimburse Ryan for the amounts set forth in that certain Interim Agreement between the parties dated June 5, 2014, subject to the terms and conditions set forth therein.  Notwithstanding the foregoing, if Ryan fails to perform the Development Services or otherwise defaults under this Agreement, the Construction Contract or the Redevelopment Agreement, then CSI shall not be liable to Ryan for any amounts, sums, fees or other payments described herein and Ryan shall absorb its own losses.

		
	6.
	Entire Agreement, Modification and Agreement.  No supplement, modification or waiver to this Agreement shall be binding unless executed in writing by the parties to be bound.  No waiver of any of the provisions of this Agreement shall constitute a waiver of any other provision.  

		
	7.
	Assignment.  The rights and duties of the parties may not be assigned without the written consent of the other, which consent may be withheld at the sole discretion of the party whose consent is sought. 

		
	8.
	Counterparts.  This Agreement may be executed simultaneously in a number of counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same instrument. 

		
	9.
	Governing Law.  This Agreement shall be governed by and construed in accordance with Minnesota law. 

		
	10.
	Remedies.  In the event of breach by either party hereto, the other party shall have all remedies available at law or in equity. 

IN WITNESS WHEREOF, Ryan and CSI have executed this Agreement as of the day and year first above written. 

RYAN COMPANIES US, INC. 

By: /s/ Casey Hankinson            
Its:  Vice President                    

CARDIOVASCULAR SYSTEMS, INC.

By: /s/ Jim Flaherty                
Its: CAO                    

EXHIBIT A

LEGAL DESCRIPTION

Lot 1, Block 1, New Brighton Exchange 2nd Addition, Ramsey County, Minnesota

EXHIBIT B

DEVELOPMENT SERVICES

		
	1.
	Coordinate development strategy and organize overall development project team. 

		
	2.
	Conduct project meetings to verify overall project goals achievement, team member responsibilities, decision making authority, etc. 

		
	3.
	Manage consultants required to perform Phase I Environmental Site Assessment.  Includes cost of Phase I Environmental Site Assessment, but excludes any additional environmental testing or documentation.  

		
	4.
	Perform soils, utilities, infrastructure, roadway and access due diligence. 

		
	5.
	Obtain governmental approvals for the Project’s site plan, zoning and subdivision. 

		
	6.
	Coordinate site acquisition with CSI and the City of New Brighton. 

		
	7.
	Work with the City of New Brighton to secure entitlements for CSI.

		
	8.
	Perform those obligations of Redeveloper, as such term is defined in the Redevelopment Agreement. 

Note:  The above services are in addition to the responsibilities of Ryan as general contractor under the Construction Contract. 

50584368_1.DOCX

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