Item 1.01. Entry into a Material Definitive Agreement.
On September 27, 2021, Shockwave Medical, Inc. (the "Company") entered into an
office lease agreement (the "Bunker Hill Lease") with Bunker Hill Lane Property,
LLC (the "Bunker Hill Landlord"), with respect to approximately 81,000 rentable
square feet of office space in the building located at 3003 Bunker Hill Drive,
Santa Clara, CA (the "Bunker Hill Building").
The initial term of the Bunker Hill Lease begins on January 1, 2022, and is for
120 months, with options by the Company to extend the initial term for up to two
additional five-year terms at the then fair market rent for the space. The
initial base rent for the Bunker Hill Lease is $2.66 per rentable square foot
per month, with 3% annual increases thereafter. The initial base rent for the
Bunker Hill Building shall be abated for the first six months of the lease term.
In connection with the Bunker Hill Lease, the Company is required to provide the
Bunker Hill Landlord with a letter of credit in the amount of $215,135 as
security for the Company's obligations under the Bunker Hill Lease.
Concurrently with its execution of the Bunker Hill Lease, the Company and Betsy
Ross Property, LLC, an affiliate of the Bunker Hill Landlord, entered into a
First Amendment to Office Lease (Net) (the "Amendment") which amends the Office
Lease (Net), dated as of December 13, 2019, between the Company and Betsy Ross
Property, LLC, with respect to the Company's leased facilities at 5403 and 5353
Betsy Ross Drive, Santa Clara, California (the "Betsy Ross Lease"). Pursuant to
the Amendment, the Company extended the term of the Betsy Ross Lease for a
period commencing on the previously scheduled expiration of the Betsy Ross Lease
of December 13, 2027 through December 31, 2031 at an initial base rent of $2.78
per square foot with 3% annual increases from and after July 1, 2028. The
Company was granted options to extend such term of the Betsy Ross Lease for up
to two additional five-year terms at the then fair market rent for the space. In
addition, subject to specified conditions, the Company was granted a right to
expand the space leased under the Betsy Ross Lease to include approximately
35,000 additional rentable square feet in the building located at 5303 Betsy
Ross Drive, Santa Clara, California beginning on February 1, 2024.
The foregoing descriptions of the Bunker Hill Lease and the Amendment are not
complete and are qualified in their entirety by the full text of the Bunker Hill
Lease and the Amendment, copies of which are filed herewith. The full text of
the Betsy Ross Lease was filed as Exhibit 10.2 to the Company's Annual Report on
Form 10-K for the year ended December 31, 2019, filed with the Securities and
Exchange Commission on March 12, 2020, which is incorporated herein by
reference.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit
Number Description of Exhibit
10.1 Office Lease (Net), dated as of September 27, 2021, between Bunker
Hill Lane Property, LLC, a Delaware limited liability company, as
Landlord, and Shockwave Medical, Inc., a Delaware Corporation, as
Tenant, for 3003 Bunker Hill Lane, Santa Clara, California.
10.2 First Amendment to Office Lease (Net), dated as of September 27, 2021,
by and between Betsy Ross Property, LLC, a Delaware limited liability
company, and Shockwave Medical, Inc., a Delaware corporation, relating
to 5353 Betsy Ross Drive, and 5403 Betsy Ross Drive, Santa Clara,
California.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
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