Exhibit 99.1
FIFTH AMENDMENT TO LEASE
THIS FIFTH AMENDMENT TO LEASE (“
Amendment ”) is
entered into effective as of this 12 th day of November
2007, between IRET – PLYMOUTH,
LLC , a Minnesota limited liability
company (“ Landlord
”), and VASCULAR
SOLUTIONS, INC. , a Minnesota corporation
(“ Tenant ”).
RECITALS
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A.
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Landlord (as successor in interest to First
Industrial, L.P. and to 321 Corporation) and Tenant are parties to
a certain “Standard Form Industrial Building Lease
(Multi-Tenant)” dated September 3, 2002 (the “
Original Lease ”), which Original Lease has been previously amended by
four amendments dated December 26, 2002, June 22, 2004, August 29,
2005, and January 25, 2006 (the Original Lease as amended by the
foregoing, collectively, the “ Lease ”). Pursuant to the
Lease, Landlord currently leases to Tenant approximately 32,735
square feet (the “ Premises ”) in the building
commonly known as “Northgate I,” and located at 6464
Sycamore Court, Maple Grove, Minnesota (the “
Building ”). The
Building currently has 79,297 total square feet.
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B.
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The current term of the Lease is scheduled to expire
on September 30, 2008.
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C.
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Landlord and Tenant desire to amend the Lease as set
forth below.
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THEREFORE, FOR VALUABLE CONSIDERATION, Landlord and
Tenant agree as follows:
1. Expansion of Premises . As of August
1, 2008 (the “ Expansion
Date ”), the Lease is amended to
increase the size of the Premises being leased by Tenant to include
an additional 46,562 square feet of the Building as reflected on
attached Exhibit 1 (the “ Expansion
Space ”). As of the Expansion Date,
the Premises, which thereafter shall include the Expansion Space,
shall equal the entire Building and shall contain a total of 79,297
square feet.
2. Extension of Term . The term of the
Lease is hereby extended for a period of seven (7) years,
commencing on October 1, 2008, and continuing through September 30,
2015 (hereinafter, the “ Extension
Term ”), unless sooner terminated
in accordance with the terms of the Lease.
3. Rent . Commencing on September 1,
2008, Tenant shall pay Base Rent to Landlord, in advance, without
offset or deduction, for the Premises (including the Expansion
Space) in strict accordance with the following schedule:
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Months
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Annualized
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Monthly
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9/1/2008 through 9/30/2010
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$685,919.05 ($8.65/sf)
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$57,159.92
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10/1/2010 through 9/30/2012
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$725,567.55 ($9.15/sf)
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$60,463.96
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10/1/2012 through 9/30/2015
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$765,216.05 ($9.65/sf)
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$63,768.00
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For the month of August 2008, Tenant shall be
responsible for and pay to the Landlord the Base Rent and any
Additional rent as provided for in Lease for the leased space that
excludes the Expansion Space. Notwithstanding anything to the
contrary, Tenant may occupy the Expansion Space and shall be
entitled to the full abatement of Base Rent and Additional Rent
attributable to Tenant’s Proportionate Share of Operating
Expenses and Taxes (the “ Abated
Rent ” ) for the Expansion Space only for a
period commencing August 1, 2008 and terminating on August 31,
2008. If no uncured Event of Default by Tenant occurs prior to the
expiration of the Term (including the Extension Term), Tenant shall
have no obligation to pay the Abated Rent. If at any time during
the Term an Event of Default occurs, and if said default is not
cured as provided in the Lease, then Tenant shall pay to Landlord,
in addition to all other amounts owed under the Lease, the Abated
Rent.
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4. Pro Rata Share . As of the Expansion
Date, Tenant’s Proportionate Share of the Operating Expenses
and Taxes shall be increased to 100.00%.
5. Tenant Improvements . Landlord is
providing the Premises (including the Expansion Space) to Tenant in
its current “AS IS” condition, without representation
or warranty of any kind. Landlord shall have no obligation to make
any modifications or alterations to the Premises (including the
Expansion Space) except as expressly provided herein, the Lease,
and including paragraph 8 (Roof Replacement) below. Landlord
acknowledges that Tenant intends to construct certain improvements
in the Expansion Space (the “ Tenant
Improvements ”). The costs of the
Tenant Improvements shall be paid by Tenant; provided, however,
that Landlord shall make available to Tenant an allowance of up to
Two Hundred Thousand Dollars and no/100 Dollars ($200,000.00) (the
“ Allowance ”). After the Expansion Date, upon receipt of paid
receipt invoices, lien waivers, and any other information or
documentation reasonably requested by Landlord, Landlord shall
reimburse Tenant from the Allowance for Tenant’s actual costs
relating to the construction of the Tenant Improvements. The
Allowance may not be used to offset Rent, or to reimburse Tenant
for any costs or expenses not directly related to the construction
of the Tenant Improvements. The Tenant Improvements shall be
constructed (i) in accordance with the plans and specifications
that have been approved by Landlord in writing (which approval
shall not be unreasonably withheld, conditioned or delayed), (ii)
in a good and workmanlike manner using only new and first-grade
materials, (iii) in compliance with all other applicable provisions
in the Lease, and (iv) in compliance with all applicable
governmental laws, ordinances, rules and regulations. If the cost
of the Tenant Improvements exceeds the Allowance, Tenant shall have
sole responsibility for the payment of such excess cost. If the
cost of the Tenant’
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