Document:

exv10w20

 

EXHIBIT 10.20

SECOND AMENDMENT TO LEASE

This
Second Amendment to Lease is made this 9th day of March, 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 and as amended and
extended on February 20, 2007 (collectively the “Lease”) for certain premises containing
approximately 34,513 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 3,343
square feet of additional office/warehouse space located adjacent to the Leased Premises as
shown on the attached Exhibit A (“Expansion Space”).

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 37,856 total square feet.
	 
	4.	 	Base Rent for the Leased Premises shall be amended and paid according
to the following schedule:

	 	 	 	 	 	 	 
	 	 	 	 	Expansion Base	 	Total Monthly
	Period	 	Base 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
	 	$26,729.57	 	$2,668.83	 	$29,398.40
	Feb. 1, 2008 – Jan. 31, 2009
	 	$27,264.16	 	$2,722.21	 	$29,986.37
	Feb. 1, 2009 – Jan. 31, 2010
	 	$27,809.45	 	$2,776.65	 	$30,586.10
	Feb. 1, 2010 – Jan. 31, 2011
	 	$28,365.65	 	$2,832.19	 	$31,197.84
	Feb. 1, 2011 – May 31, 2012
	 	$28,932.95	 	$2,888.83	 	$31,821.78

	5.	 	Tenant’s Proportionate Share, as defined in the Lease, shall be 80.60%.
	 
	6.	 	PARKING. An additional twelve (10) non-exclusive parking stalls shall
be provided for a total of one-hundred thirty-four (132)
non-exclusive parking stalls.

 

 

	7.	 	Landlord shall provide the following Tenant Improvements to the Expansion Space:

	 	•	 	Replace carpet in front half of bay (conference room and existing carpeted
areas) 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.
	 
	 	•	 	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.
	 
	 	•	 	Restrooms cleaned and all plumbing certified in good working order.
Repair and repaint all drywall 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 tent 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.

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:

	 	
 

  John N. Allen
	 	 	 	By:
	 	/s/ JAMES E. FLAHERTY
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Its:

	 	  Managing Agent
	 	 	 	Its:
	 	CFO	 	 
	 
	Date:

	 	 	 	 	 	Date:
	 	3/16/07	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 

 

 

EXHIBIT Aexv10w21

 

EXHIBIT 10.21

THIRD AMENDMENT TO LEASE

This Third
Amendment to Lease is made this
26th
day of September, 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 and as amended and
extended on February 20, 2007 and on March 9, 2007 (collectively the “Lease”) for certain
premises containing approximately 37,856 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 9,177
square feet of additional office/warehouse space located adjacent to the Leased Premises as
shown on the attached Exhibit A (“Expansion Space”).

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 January 1, 2008.
	 
	2.	 	The Lease term shall terminate November 30, 2012.
	 
	3.	 	For purposes of this Amendment, effective January 1, 2008, the Leased
Premises shall contain approximately 47,033 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
	Jan. 1, 2008 – Jan. 31, 2008
	 	$	29,398.40	 	 	$	0.00	 	 	$	29,398.40	 
	Feb. 1, 2008 – Feb. 29, 2008

	 	$	29,986.37	 	 	$	0.00	 	 	$	29,986.37	 
	Mar. 1, 2008 –  Jan. 31, 2009

	 	$	29,986.37	 	 	$	7,326.31	 	 	$	37,222.68	 
	Feb. 1, 2009 – Feb. 28, 2009

	 	$	30,586.10	 	 	$	7,326.31	 	 	$	37,912.41	 
	Mar. 1, 2009 –  Jan. 31, 2010
	 	$	30,586.10	 	 	$	7,472.84	 	 	$	38,058.94	 
	Feb. 1, 2010 –  Feb. 28, 2010
	 	$	31,197.84	 	 	$	7,472.84	 	 	$	38,670.68	 
	Mar. 1, 2010 –  Jan. 31, 2011

	 	$	31,197.84	 	 	$	7,622.30	 	 	$	38,820.14	 
	Feb. 1, 2011 – Feb. 28, 2011

	 	$	31,821.78	 	 	$	7,622.30	 	 	$	39,444.08	 
	Mar. 1, 2011 – Feb. 29, 2012
	 	$	31,821.78	 	 	$	7,774.75	 	 	$	39,596.53	 
	Mar.
1, 2012 –  May 31, 2012

	 	$	31,821.78	 	 	$	7,930.25	 	 	$	39,752.03	 
	Jun. 1, 2012 – Nov. 30, 2012

	 	$	32,458.22	 	 	$	7,930.25	 	 	$	40,388.47	 

	5.	 	Tenant’s Proportionate Share, as defined in the Lease, shall be 100.00%.

 

 

	6.	 	LANDLORD IMPROVEMENTS. Landlord agrees to the following
expansion space improvements:

	 	•	 	Re-paint all drywall walls. Tenant to choose colors.
	 
	 	•	 	Add or demo one (1) office.
	 
	 	•	 	Re-carpet existing carpeted areas.
	 
	 	•	 	Reinstall all missing doors.
	 
	 	•	 	Make any necessary drywall repairs.
	 
	 	•	 	Replace any missing or damaged ceiling tiles.
	 
	 	•	 	Create up to two openings into the existing space.
	 
	 	•	 	Service and certify HVAC system servicing the Premises is in good
working order as of the commencement date.
	 
	 	•	 	Ensure all lighting is in working order and candles are consistent
with current space.

	 	 	Other than the above listed improvements, 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.
	 
	7.	 	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.
	 
	8.	 	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.
	 
	9.	 	EARLY ACCESS. Landlord shall allow Tenant to access the expansion
space effective November 1, 2007, as long as all utilities servicing
the expansion space are paid by Tenant.

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:

	 	
 

John N. Allen
	 	 	 	By:
	 	/s/ JAMES E. FLAHERTY
 

	 	 
	 
	Its:

	 	Managing Agent
 

	 	 	 	Its:
	 	CFO
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 
	 	Date:
	 	9/26/07	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

 

 

EXHIBIT A

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