Exhibit 10.1

 

SUBLEASE AGREEMENT

 

THIS SUBLEASE AGREEMENT (“Sublease”) is entered into this 26th day of January,
2017, by and between Ingredion Incorporated, a Delaware corporation
(“Sublandlord”) and Viveve Medical, Inc., a Delaware corporation (“Subtenant”).

 

RECITALS

 

A.     Sublandlord is the tenant of the premises commonly known and described as
345 Inverness Drive South, Building B, Suite 200, Englewood, Colorado 80112 (the
“Premises”), pursuant to a Lease of Space dated March 5, 2014, by and between
Hines REIT 345 Inverness Drive, LLC, a Delaware limited liability company as
landlord and Penford Corporation, a Washington corporation, as tenant, as such
Lease of Space was assumed by Sublandlord pursuant to an Assumption of Lease
With Landlord Consent dated December 3, 2015 (collectively, the “Master Lease”).
A complete copy of the Master Lease is attached hereto as Exhibit A. Capitalized
terms used herein which are not defined herein shall have the meanings ascribed
to them in the Master Lease.

 

B.     The current owner of the Premises is Inverness LL, LLC, a Delaware
limited liability company (“Master Landlord”).

 

C.     Subtenant wishes to sublease a portion of the Premises from Sublandlord,
and Sublandlord is willing to sublease said portion of the Premises to Subtenant
upon the terms and conditions contained herein.

 

COVENANTS AND AGREEMENTS

 

In consideration of the premises contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

 

1.     Sublease of Premises. Sublandlord hereby subleases to Subtenant, and
Subtenant subleases from Sublandlord, a portion of the Premises, consisting of
12,342 rentable square feet as generally depicted on Exhibit B attached hereto
and incorporated herein (the “Subleased Premises”); provided, however, such
calculation is subject to remeasurement following completion of the Subtenant
Improvements.

 

2.     Term. The term of the Sublease shall commence upon the earlier to occur
of: (a) one hundred twenty (120) days after Sublandlord delivers possession of
the Subleased Premises to Subtenant; or (b) upon substantial completion of the
Subtenant Improvements (the “Commencement Date”) and shall expire on that date
that is thirty-six (36) months from the Commencement Date (the “Expiration
Date”), unless sooner terminated as hereinafter provided or by operation of law
(the “Term”). Notwithstanding anything contained herein to the contrary, if the
Commencement Date occurs on a day other than the first day of a month, the Term
shall be measured from the first day of the month following the month in which
the Commencement Date occurs and the Expiration Date shall be extended by the
number of days between the Commencement Date and the first day of the month
following the Commencement Date. Subtenant shall execute a confirmation of the
Commencement Date, Expiration Date and other matters in such form as Sublandlord
may reasonably request within ten (10) days after requested (but nothing herein
shall require Sublandlord to so request); any failure to respond within such
time shall be deemed an acceptance of the matters as set forth in Sublandlord’s
confirmation.

 

 
 

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3.     Rent. Subtenant shall pay Sublandlord gross rent for the full Term of the
Sublease in monthly installments as follows:

 

Period

Annual Rate Per Square Foot

Monthly Gross Rent

Commencement Date – Lease Year 1

$20.50

$21,084.25

Lease Year 2

$21.12

$21,721.92

Lease Year 3

$21.75

$22,369.88

 

The Rent during the Term shall be paid on the first day of each month at
Sublandlord’s office at the following location: Ingredion Incorporated, 12981
Collections Center Drive, Chicago, Illinois 60693 or at such other location as
Sublandlord shall designate in a written notice to Subtenant. If the Term
commences on a day other than the first day of a calendar month or ends on a day
other than the last day of a calendar month, the Rent and any other amounts
payable on a monthly basis shall be prorated on a per diem basis for such
partial calendar months. “Lease Year” shall be a period of twelve (12)
consecutive full calendar months commencing on the same date as the Commencement
Date if the Commencement Date shall occur on the first day of a calendar month;
if not, then the Lease Year shall commence upon the first day of the calendar
month next following the Commencement Date. There shall be no pass through of
Basic Rent or Additional Rent as set forth in the Master Lease.

 

Notwithstanding other remedies contained herein, if any payment of Rent is made
more than five (5) business days from when due and Subtenant has received
written notice from Sublandlord, a late payment charge of five percent (5%) of
the past due amount shall immediately become due and payable in addition to the
amount otherwise owed.

 

4.     Security Deposit. Upon execution of this Sublease, Subtenant shall
deposit a security deposit in the amount of $21,717.00 with Sublandlord. If
Subtenant is in default, Sublandlord can use the security deposit or any portion
of it to cure the default or to compensate Sublandlord for any damages sustained
by Sublandlord resulting from Subtenant’s default. Upon demand, Subtenant shall
immediately pay to Sublandlord a sum equal to the portion of the security
deposit expended or applied by Sublandlord to restore the security deposit to
its full amount. In no event will Subtenant have the right to apply any part of
the security deposit to any Rent or other sums due under this Sublease or the
Master Lease. If Subtenant is not in default at the expiration or termination of
this Sublease, Sublandlord shall return the security deposit to Subtenant within
forty-five (45) days after the expiration of the Sublease. Sublandlord’s
obligations with respect to the deposit are those of a debtor and not of a
trustee, and Sublandlord can commingle the security deposit with Sublandlord’s
general funds. Sublandlord shall not be required to pay Subtenant interest on
the deposit. Sublandlord shall be entitled to immediately endorse and cash
Subtenant’s prepaid deposit; however, such endorsement and cashing shall not
constitute Sublandlord’s acceptance of this Sublease. In the event Master
Landlord or Sublandlord does not accept this Sublease, Sublandlord shall return
said prepaid deposit.

 

 
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5.     Parking. Subtenant shall be entitled, subject to all provisions contained
in Section 14.18 of the Master Lease, to 74 unassigned parking spaces (based
upon 6.0 unassigned parking spaces per 1,000 square feet of Floor Area).

 

6.     Subtenant Improvements.

 

a.     Improvement Allowance. Sublandlord shall make an allowance of $88,030.00
(“Improvement Allowance”) available to Subtenant for the purpose of performing
improvements to the Subleased Premises (“Subtenant Improvements”). The
Improvement Allowance may be used for all reasonable hard and soft costs
associated with the design, engineering, permitting and construction of the
Subleased Premises. Any Improvement Allowance not utilized as provided above
within six (6) months after the date of mutual execution of the Sublease shall
be forfeited by Subtenant.

 

b.     Payment of Improvement Allowance.

 

i.     The Improvement Allowance shall be funded to Subtenant within thirty (30)
days following completion of the Subtenant Improvements and Sublandlord’s
receipt of Subtenant’s written draw request accompanied by the following
documents: (a) final lien waivers from Subtenant’s general contractor and all
subcontractors whose work is the subject of such draw request (subject only to
the receipt of payment therefor), or unconditional final lien waivers from such
contractors with respect to any work the non-payment for which will give rise to
a statutory mechanic’s lien under applicable law, or if the waivers are
conditioned on payment of the amount so waived, proof reasonable to Sublandlord
that the proper amount has been received by the waiving party; (b) application
for payment and sworn statement of Subtenant’s general contractor substantially
in the form of AIA Document G702, or in the case of any work not performed by or
under the general contractor, such other documentation (including, without
limitation, copies of invoices, contracts and reasonable evidence of payment,
including cancelled checks) reasonably substantiating the charges of the
applicable vendors, contractors or design service providers; and (c) a
certificate of occupancy (or its equivalent) from the City of Englewood,
Colorado for the Tenant Improvements. If the Improvement Allowance is not
received within sixty (60) days of receiving the above outlined information, a
late payment charge of five percent (5%) shall immediately become due and
payable in addition to the Improvement Allowance owed. The Improvement Allowance
owed and late payment charge may be applied to monthly Rent due under this
Sublease.

 

ii.     If the total cost of the Subtenant Improvements exceeds the Improvement
Allowance, then Subtenant shall pay all such excess costs and Subtenant agrees
to keep the Subleased Premises, the Building and the Land free from any liens
arising out of the non-payment of such costs. Except as otherwise expressly
provided herein, all costs of the Subtenant Improvements in excess of the
Improvement Allowance including changes requested by Subtenant and approved by
Sublandlord to the extent such changes increase the cost of the Subtenant
Improvements in excess of the Improvement Allowance (collectively, “Cost
Overruns”) shall be paid by Subtenant directly to Subtenant’s contractors as and
when the same are due. If there are any Cost Overruns, then, with Subtenant’s
request for payment of the Improvement Allowance by Sublandlord, Subtenant shall
provide Sublandlord with reasonable proof of payment to Subtenant’s contractors
(e.g., copies of invoices and cancelled checks, but not invoices marked “paid”
or “paid invoices”) of the Cost Overruns.

 

 
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c.     Construction Process. Subject to new Building standards and Sublandlord’s
and Master Landlord’s reasonable approval, Subtenant shall control its own
construction and contractor selection with respect to the non-core areas on the
floor. Except as expressly provided to the contrary herein, Subtenant’s
construction of the Subtenant Improvements shall be subject to all applicable
provisions of the Sublease and Master Lease regarding alterations or
improvements to the Subleased Premises, including without limitation the
provisions contained in Section 8.12 of the Master Lease. Subtenant shall submit
Subtenant’s plans and specifications for the construction of the Subleased
Premises to both Sublandlord and Master Landlord for approval. Sublandlord shall
approve Subtenant’s plans and specifications for the construction of the
Subleased Premises, or provide written comments thereto, within five (5)
business days of receipt for improvements that are nonstructural in nature, and
within fifteen (15) days for improvements that involve structural work.
Sublandlord acknowledges that Subtenant has retained Kris Belter of Intergroup
Architects contracted through A&B Builders Inc. as Subtenant’s architect
(“Subtenant’s Architect”) for preparation of construction drawings.

 

d.     As-Builts. Within sixty (60) days after completion of the Subtenant
Improvements, Subtenant will provide to Sublandlord a copy of the CADD file
containing the as-builts of the Subtenant Improvements, including
Mechanical/Electrical/Plumbing (MEP) CADD files.

 

e.     Insurance. Subtenant’s general contractor shall carry the following
insurance coverage: (i) commercial liability insurance (occurrence based)
insuring against any liability occurring in or about the Subleased Premises,
including protection against death, personal injury and property damage, with a
single limit of not less than of Two Million Dollars and No/100 ($2,000,000.00);
(ii) builder’s risk insurance covering the replacement value of the Subtenant
Improvements; and (iii) worker’s compensation insurance to the applicable
statutory limit, if any. Such insurance shall expressly insure Subtenant,
Sublandlord and Master Landlord all as additional insured and shall contain an
endorsement requiring at least thirty (30) days prior written notice of
cancellation to Sublandlord before cancellation or change in coverage, scope or
amount of any policy. Prior to commencement of the Subtenant Improvements,
Subtenant shall provide Sublandlord with certificate(s) of insurance evidencing
all required insurance coverage.

 

 

7.

Option to Extend.

 

a.     Subtenant shall have an option to extend the Term of this Sublease
(“Option to Extend”) for two (2) additional periods of one (1) Lease Year
(“Extension Period”) on the same terms and conditions in effect under this
Sublease immediately prior to the Extension Period, except that Subtenant shall
have no further right to extend and the monthly Rent shall be adjusted to
$22.40/SF for the first Extension Period and $23.07/SF for the second Extension
Period. The Option to Extend may be exercised only by giving Sublandlord
irrevocable and unconditional written notice thereof no later than six (6)
months prior to the commencement of the Extension Period. Said exercise shall,
at Sublandlord’s election, be null and void if Subtenant is in an uncured
default position under the Sublease at the date of said notice or any time
thereafter and prior to commencement of the Extension Period. The term “Lease
Year” herein means each 12 month annual period, commencing with the first day of
the Extension Period, without regard to calendar years.

 

 
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b.     If Subtenant shall fail to exercise its Option to Extend, said option
shall terminate, and shall be null and void and of no further force and effect.
Subtenant’s exercise of said option shall not operate to cure any default by
Subtenant of any of the terms or provisions in the Sublease, nor to extinguish
or impair any rights or remedies of Sublandlord arising by virtue of such
default. If the Sublease or Subtenant’s right to possession of the Subleased
Premises shall terminate in any manner whatsoever before Subtenant shall
exercise its Option to Extend, or if Subtenant shall have subleased or assigned
all or any portion of the Subleased Premises, then immediately upon such
termination, sublease or assignment, the Option to Extend shall simultaneously
terminate and become null and void. Such option is personal to Subtenant. Under
no circumstances whatsoever shall the assignee under a complete or partial
assignment of the Sublease, or a subtenant under a sublease of the Subleased
Premises, have any right to exercise the Option to Extend granted herein. Time
is of the essence of this provision.

 

8.     Right of First Offer. So long as there is no default by Subtenant under
this Sublease (beyond any applicable cure period) either at the time that
Sublandlord is obligated to give notice according to this Section 8 or on the
date on which Sublandlord would otherwise deliver possession of the First Offer
Space (as that term is defined in this Section), Subtenant will have a right of
first offer (the “Right of First Offer”) to sublease any other space within the
Premises (the “First Offer Space”), if Sublandlord decides to sublease the First
Offer Space. The Right of First Offer will be exercised in accordance with, and
subject to, the following terms and conditions:

 

a.     Sublandlord shall notify Subtenant in writing if it decides to sublease
the First Offer Space. Sublandlord’s notice will include: (i) the specific
location of the First Offer Space and the rentable area comprising the First
Offer Space; (ii) the approximate date on which the First Offer Space will
become available for occupancy by Subtenant; and (iii) the improvements, if any,
as Sublandlord is willing to make to the First Offer Space.

 

b.     Within five (5) business days after Subtenant’s receipt of Sublandlord’s
notice, Subtenant will exercise the Right of First Offer, or lose it
irretrievably. If Subtenant exercises the Right of First Offer, then the
subleasing of the First Offer Space will be on the same terms and conditions as
the Sublease except:

 

i.     Subtenant’s obligation to pay Rent for the First Offer Space will
commence on the date such space is made available to Subtenant, but not sooner
than the date specified in Sublandlord’s notice unless Subtenant occupies the
First Offer Space prior to such date, and will continue through the expiration
or earlier termination of the term of the Sublease.

 

 
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ii.     Sublandlord will deliver and Subtenant will accept the First Offer Space
in its then existing condition, on an “as is” basis. Subtenant will not be
entitled to receive any contribution or allowance from Sublandlord for
improvement of the First Offer Space, except as provided in Section 8(a)(iv).

 

c.     Subtenant cannot assign its Right of First Offer to any sublessee of the
Subleased Premises, or to any assignee of the Sublease, or to any other person;
however, if the Subtenant has exercised the Right of First Offer and has
subleased a First Offer space, then Subtenant’s right to sublease the First
Offer Space, or to assign its rights under the Sublease to the First Offer
Space, will be subject to Section 13. Any Right of First Offer, which has not
both been exercised by Subtenant and under which Subtenant has subleased the
First Offer Space, will expire upon any assignment of the Sublease or sublease
of the Subleased Premises.

 

d.     Upon inclusion of the First Offer Space, all references in the Sublease
to the “Subleased Premises” shall be deemed to include the First Offer Space.

 

9.     Holding Over.     In the event that Subtenant fails to vacate the
Subleased Premises upon the expiration or termination of the Sublease, Subtenant
will be deemed to be a month-to-month subtenant on all of the terms and
conditions hereof, except for the term, and except that the Rent payable shall
be 150% of the Rent payable during the final month of the Term. Additionally,
Subtenant shall indemnify and hold Sublandlord harmless from all liability to
Master Landlord due to Subtenant’s failure to timely vacate the Subleased
Premises, including without limitation costs and attorneys’ fees.

 

10.     Use of the Subleased Premises. The Subleased Premises shall be used
solely for general office and warehouse use and in compliance with all terms and
conditions binding upon Sublandlord under the Master Lease, as well as in
compliance with all zoning, environmental, and other laws, rules, regulations,
statutes, ordinances, orders, and other requirements which are or may become
applicable to the Subleased Premises and to Subtenant’s business. Subtenant
shall keep no Hazardous Substances on the Subleased Premises, and shall operate
no machines or conduct other activities which may create undue noise or dust, or
a hazard or dangerous condition to the Subleased Premises, other tenants of the
Building, or their invitees. Subtenant is responsible for keeping the Subleased
Premises in neat and clean condition

 

11.     Signs. No signs shall be placed by Subtenant anywhere on or about the
Subleased Premises or the Building without the express written consent and
approval of such sign(s) and the placement thereof by Sublandlord and Master
Landlord, which consent shall not be unreasonably withheld or delayed.

 

12.     Insurance. Subtenant shall at all times keep in effect all insurance
required by and in accordance with Article VI of the Master Lease, and shall
name Sublandlord, as well as Master Landlord, as additional insureds or loss
payees, as applicable. Sublandlord and Subtenant shall each cause their
respective insurers to waive any right of subrogation against the other and
against the Master Landlord for losses which are covered by insurance. Subtenant
shall be bound by Article VI of the Master Lease, and in addition, the
provisions of Article VI shall be deemed to be incorporated into this Sublease,
with “Sublandlord” substituted for “Landlord” and Subtenant’ substituted for
“Tenant” in the wording thereof.

 

 
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13.     Assignment and Subletting. Subtenant may neither assign this Sublease
nor further sublet the Subleased Premises without the express written permission
of Sublandlord and the Master Landlord, which consent may be withheld in either
party’s sole and absolute discretion.

 

14.     Warranty of Possession and Quiet Enjoyment. Sublandlord warrants that it
has the right and authority to enter into this Sublease, subject to Master
Landlord’s written consent, and that Subtenant, upon paying the Rent and
observing all of Subtenant’s other covenants and agreements in this Sublease,
shall have quiet and peaceable possession of the Subleased Premises during the
Term of this Sublease and in the Master Lease. Notwithstanding the foregoing,
Sublandlord shall not be responsible for acts or omissions of any other tenants,
Master Landlord or other third parties who may interfere with Subtenant’s
possession of the Subleased Premises.

 

15.     Repairs. Subtenant shall be responsible, at its own cost and expense, to
repair any damage to the Subleased Premises or Building caused by any act or
omission of Subtenant or Subtenant’s employees, contractors, invitees, agents,
visitors, or any other persons in or about the Subleased Premises by reason of
the express or implied invitation or permission of Subtenant. Should Subtenant
fail promptly to effect any such repairs, Sublandlord may make such repairs and
charge the cost of such repairs to Subtenant, who shall pay such charge within
five (5) business days of receipt of demand.

 

16.     Alterations and Improvements, Liens. Subsequent to the completion of the
Subtenant Improvements, Subtenant shall make no improvements to the Subleased
Premises without the express written permission of the Sublandlord and Master
Landlord which Sublandlord consent shall not be unreasonably denied, conditioned
or delayed. If consent is granted, Subtenant shall allow no lien to be placed on
the Building or the Subleased Premises or Sublandlord’s interest therein arising
out of the construction of such improvements, and shall hold harmless and
indemnify Sublandlord and the Master Landlord from all costs and expenses
relating to such improvements or liens. Promptly upon demand by Sublandlord or
the Master Landlord, Subtenant shall cause any such liens to be removed, by
means of posting an appropriate bond, if necessary. At Sublandlord’s option, all
improvements shall become a part of the Subleased Premises, or Sublandlord may
require Subtenant to remove such improvements at the expiration or termination
of the Term, and to restore the Subleased Premises to its condition upon
execution of the Sublease, at Subtenant’s expense. Subtenant shall permit
Sublandlord and/or Master Landlord to place and maintain notices of
non-liability on the Subleased Premises during the period that any improvements
or alterations are being made by or for Subtenant.

 

17.     Default and Remedies

 

a.     Default by Subtenant. Subtenant shall be in default hereunder in the
event Subtenant: fails to timely pay any installment of Rent due hereunder and
such failure continues for three (3) days after Subtenant’s receipt of notice
that such payment is past due; fails to comply with any other term, condition,
covenant or agreement contained herein and such failure continues thirty (30)
days after Subtenant’s receipt or notice of such failure (provided, if the
nature of Subtenant’s default is such that more time is reasonably required in
order to cure, Subtenant shall not be in default if Subtenant commences to cure
promptly within such period and thereafter diligently pursues its completion);
abandons the Subleased Premises; becomes subject to the jurisdiction of a
Bankruptcy court or control of court-appointed receiver; makes an assignment for
the benefit of creditors; violates any provision of the Master Lease; or does or
permits any act to be done which results in a lien against the Building, the
Subleased Premises or any portion thereof or interest therein, and fails to
remove the same within ten (10) days of receipt of notice of such lien.

 

 
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b.     Remedies of Sublandlord. Upon Subtenant’s default beyond any applicable
notice and cure period, Sublandlord shall have any one or more of the remedies
provided herein, or any other remedy permitted by law. Sublandlord may re-enter
the Subleased Premises and take possession thereof and remove Subtenant and any
other person on the Subleased Premises, with or without terminating the
Sublease, and after readying the Subleased Premises at Subtenant’s expense, may
re-sublet it. If the Sublease is not terminated, Subtenant shall be responsible
for any deficiency between the Rent reserved under the Sublease and the net
proceeds of re-subletting after deducting all reasonable expenses incident
thereto, such as painting, re-carpeting, cleaning, and otherwise restoring the
Subleased Premises to a condition appropriate to make it ready for
re-subletting, advertising, broker fees, legal fees, and other reasonable
expenses of re-subletting, and Subtenant shall continue to be liable for any
other amounts owed to Sublandlord under the Sublease. If the Sublease is
terminated, Subtenant shall be liable for damages measured by the Rent reserved
under the Sublease for the balance of the Term, less the net proceeds of
re-subletting reasonably to be expected by Sublandlord, both reduced to present
value.

 

c.     Default by Sublandlord and Remedies of Subtenant. Subtenant shall notify
Sublandlord of any claimed default by Sublandlord in writing, and Sublandlord,
should it agree that a default exists, shall cure said default within thirty
(30) days, or if the default cannot reasonably be cured within thirty (30) days,
shall commence action to cure within said thirty (30) days, and pursue
completion thereof with reasonable speed. Under no circumstances shall Subtenant
have the right to withhold or deduct any amounts from Rent or other amounts due
to Sublandlord hereunder, or to terminate the Sublease, Subtenant’s sole remedy
for default by Sublandlord being an action for damages. Notwithstanding the
foregoing, if the Master Landlord shall notify the Subtenant in writing, with a
copy to Sublandlord, that Sublandlord is in default under the Master Lease by
reason of non-payment of Rent, Subtenant may thereafter pay its Rent directly to
Master Landlord for the account of Sublandlord, provided that (a) Sublandlord is
copied with the transmittal memo and check used in payment of the same; and (b)
payment is made within the time required by this Sublease.

 

18.     Surrender of Subleased Premises. Upon expiration or earlier termination
of this Sublease, Subtenant shall timely vacate the Subleased Premises, leaving
the same clean and in as good condition as it was at the date of execution of
the Sublease, ordinary wear and tear and permitted alterations excepted.
Notwithstanding the foregoing, if required by Sublandlord or Master Landlord,
Subtenant shall remove any improvements or any trade fixtures attached to the
Subleased Premises by Subtenant, repairing any damage caused by the removal.

 

 
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19.     Right to Inspect Subleased Premises. Sublandlord and Master Landlord
shall have the right to inspect the Subleased Premises at all times in
accordance with Section 8.20 of the Master Lease.

 

20.     Condition of Subleased Premises. Subtenant accepts the Subleased
Premises in its “as is” “where is” condition, and acknowledges that it is
acceptable for Subtenant’s use and occupation without any agreements,
representations, understandings or obligations on the part of Sublandlord to
perform any alterations, repairs or improvements.

 

21.     Indemnity. Subtenant shall indemnify, defend (using legal counsel
reasonably acceptable to Sublandlord or Master Landlord, as applicable) and save
Sublandlord and Master Landlord harmless from all claims, suits, losses,
damages, fines, penalties, liabilities and expenses (including Sublandlord’s and
Master Landlord’s personnel and overhead costs and reasonable attorneys’ fees
and other costs incurred in connection with claims, regardless of whether such
claims involve litigation) resulting from any actual or alleged injury
(including death) of any person or from any actual or alleged loss of or damage
to any property arising out of or in connection with (a) Subtenant’s occupation,
use or improvement of the Subleased Premises, or that of its employees, agents
or contractors; (b) Subtenant’s breach of its obligations under this Sublease or
the Master Lease; or (c) any act or omission of Subtenant or any subtenant,
licensee, assignee or concessionaire of Subtenant, or of any officer, agent,
employee, guest or invitee of Subtenant, or of any such entity in or about the
Subleased Premises. This indemnity with respect to acts or omissions during the
Term of this Sublease shall survive termination or expiration of this Sublease.
Subtenant shall promptly notify Sublandlord and Master Landlord of casualties or
accidents occurring in or about the Subleased Premises. The foregoing provisions
shall not be construed to make Subtenant responsible for loss, damage, liability
or expense resulting from the gross negligence or intentional misconduct of
Sublandlord, or its officers, contractors, licensees, agents, employees, or
invitees, or of Master Landlord or its officers, contractors, licensees, agents,
employees, invitees or other tenant of the Building.

 

22.     Sublandlord’s Obligations.

 

a.     Sublandlord represents and warrants to Subtenant that (i) a true, correct
and complete copy of the Master Lease is attached hereto as Exhibit A and that
the Master Lease is in full force and effect; (ii) Sublandlord has received no
notice of default under the Master Lease that remains uncured and to the
knowledge of Sublandlord, no event has occurred which with the passage of time
or giving of notice, or both, would result in a default under the Master Lease;
and (iii) as of the date hereof, Sublandlord has received no written notice of
any violation of law with respect to the Subleased Premises which remains
uncured.

 

b.     Sublandlord covenants and agrees not to act or suffer or permit anything
to be done which could result in a default under the Master Lease or cause the
Master Lease or the rights of Sublandlord as tenant thereunder to be terminated,
cancelled or forfeited. Sublandlord further covenants and agrees that it will
not terminate, modify or amend the Master Lease during the Term of the Sublease.
Sublandlord further covenants and agrees to pay Master Landlord all Rent and
other charges that may become due and payable by Sublandlord pursuant to the
Master Lease, as and when such amounts become due and payable thereunder.

 

 
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c.     Sublandlord agrees, at no expense of Sublandlord, to reasonably cooperate
with Subtenant in obtaining the consent of the Master Landlord where any such
consent is required by this Sublease or the Master Lease, and will act
reasonably with respect to any consent requested by Subtenant in connection with
this Sublease. Without limiting the generality of the foregoing, if Subtenant
shall submit to Sublandlord a request for Master Landlord’s consent or approval
with respect to any given matter required by this Sublease or the Master Lease,
then Sublandlord shall promptly forward such request onto Master Landlord for
its consent or approval.

 

d.     Sublandlord agrees that it shall indemnify and hold harmless Subtenant
from and against any and all liability claims, suits, demands, damages,
judgments, costs, interests and expenses (including reasonable attorneys’ fees)
which Subtenant shall suffer or incur (i) in connection with a default by
Sublandlord under the Master Lease (other than if such default is caused by a
default by Subtenant under this Sublease); or (ii) by reason of any claim for
any injury to or death of any person or damage to property arising out of,
pertaining to, or resulting from the negligent acts or omissions of Sublandlord,
its agents or employees arising from the use or occupancy of the Subleased
Premises and occurring prior to the Sublease Commencement Date; provided,
however, that Sublandlord’s indemnification obligations shall be limited to
Subtenant’s actual damages, only, and shall not apply to consequential,
incidental, punitive, or exemplary damages claimed to have been incurred by
Subtenant.

 

23.     Miscellaneous Provisions.

 

a.     Waiver. No waiver or forbearance by a party of a breach of this Sublease
shall act as a waiver of the party’s rights upon any subsequent or different
breach by the other party.

 

b.     Force Majeure. Neither party shall be required to perform any obligation
or covenant of this Sublease during the time that the performance is prevented
by war, strike, terrorism, natural disaster or other force majeure.

 

c.     Sublease binding. This Sublease shall be binding on the parties hereto,
their successors and assigns, subject to other restrictions contained herein,
including without limitation, restrictions on assignment and subletting.

 

d.     Authority of signatories. By their signatures hereon, the persons signing
this Sublease warrant that they are fully authorized to bind the party for whom
they sign, and that said party has the legal capacity to contract.
Notwithstanding the foregoing, this Sublease shall not be effective unless
Master Landlord has consented to it in writing.

 

e.     Entire agreement; amendment. This Sublease contains the entire agreement
between the parties, and any prior discussions, representations or agreements
are merged herein. No amendment shall be valid or binding unless it is written
and signed by both parties.

 

 
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f.     Sublease Subordinate to Master Lease. Subtenant acknowledges that the
Sublandlord’s rights and interests in the Subleased Premises derive solely from
the Master Lease. Unless the Master Landlord should otherwise agree, should
Sublandlord for any reason whatsoever, voluntarily or involuntarily, no longer
have the right to occupy the Subleased Premises, this Sublease shall terminate
and the parties shall have no further rights against one another, except for
rights which arose prior to the date of termination of Sublandlord’s rights in
the Subleased Premises. Subtenant specifically acknowledges the potential
termination of the Master Lease in the event of damage or destruction of the
Building under Article IX of the Master Lease, in the event of the exercise of
eminent domain rights under Article X of the Master Lease, and in the event of
Sublandlord’s default under Article XI of the Master Lease. Subtenant agrees to
abide by all terms of the Master Lease and any rules and regulations of Master
Landlord promulgated thereunder. Subtenant acknowledges that it has no rights
under the Master Lease except those specifically set forth herein. Except as
specifically excluded or modified by this Sublease, the terms, covenants and
conditions of the Master Lease are incorporated herein by reference so that each
and every such term, covenant and condition of the Master Lease binding on or
inuring to the benefit of Landlord thereunder shall in respect of this Sublease,
bind or inure to the benefit of Sublandlord and each and every such term,
covenant and condition of the Master Lease binding or incurring to the benefit
of the Tenant thereunder shall, in respect of this Sublease, bind or inure to
the benefit of Subtenant. In the event of a conflict between the terms and
conditions of the Master Lease and the terms and conditions of this Sublease,
then the terms and conditions of this Sublease shall control.

 

g.     Subtenant Honors Master Lease. Subtenant agrees to honor the terms of the
Master Lease insofar as applicable to Subtenant’s conduct, and to do nothing (or
omit to do anything) which would cause Sublandlord to be in default of the
Master Lease. Subtenant further agrees to forward to Sublandlord promptly upon
receipt any and all notices or correspondence received by Subtenant from any
third parties concerning the Master Lease, this Sublease, or the Subleased
Premises.

 

h.     Subordination, Estoppels. Subtenant agrees that this Sublease is
subordinate to the Master Lease and to any deeds of trust or mortgages which may
now or hereafter be recorded against the Subleased Premises. Subtenant shall
attorn in the same manner as Sublandlord under Section 8.15 of the Master Lease.
Upon request by the Sublandlord, Subtenant agrees promptly (and in no event
later than five (5) business days after receipt of request) to execute an
estoppel certificate stating that the Sublease is in force and effect, and all
relevant facts about its status, including such matters as the Security Deposit,
the date to which Rent has been paid, and any claimed defaults of Sublandlord,
which may be relied upon by any potential assignee or lender for the Subleased
Premises or Sublandlord. Subtenant shall also provide estoppel certificates to
Master Landlord in compliance with Section 8.19 of the Master Lease.

 

i.     Notices. Any written notice to a party shall be deemed effective (i) upon
hand delivery, (ii) three days after deposit in the United States Mail, prepaid
certified mail, return receipt requested or (iii) the next business day after
deposit with a nationally recognized overnight carrier, addressed as set forth
below or to such other address as Sublandlord or Subtenant may designate to each
other from time to time by written notice:

 

 
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If to Sublandlord:                Ingredion Incorporated

Attn: Eric Chutorash

345 Inverness Drive South

Building B, Suite 200

Englewood, CO 80122

 

With a copy to:                    Ingredion Incorporated

Attn: General Counsel

5 Westbrook Corporate Center

Westchester, IL 60154

 

If to Subtenant:                    Viveve Medical, Inc.

Attn: Dave Black

150 Commercial Street

Sunnyvale, CA 94086-5201

 

With a copy to:                    Viveve Medical, Inc.

Attn: Jim Atkinson

150 Commercial Street

Sunnyvale, CA 94086-5201

 

j.     Severability. The provisions of this Sublease shall be deemed to be
severable, and if any provision hereof is held to be invalid or unenforceable,
the remainder of the Sublease shall be enforced to the full extent possible
without said provision.

 

k.     No Recordation. Neither this Sublease nor a memorandum thereof shall be
recorded, and recordation shall be a default.

 

l.     Brokers. Subtenant represents and warrants to Sublandlord that Subtenant
was not represented by any broker or agent with respect to this Sublease except
Colliers International (“Subtenant’s Broker”). Sublandlord represents and
warrants to Subtenant that Sublandlord was not represented by any broker or
agent with respect to this Sublease other than Newmark Grubb Knight Frank
(“Sublandlord’s Broker”). Subtenant and Sublandlord each agree to indemnify and
hold harmless the other party against any loss, expense, cost or liability
incurred by such party as a result of any claims by brokers other than
Subtenant’s Broker and Sublandlord’s Broker.

 

m.     OFAC. Sublandlord and Subtenant each represents and warrants that: (i) it
is not acting, directly or indirectly, for or on behalf of any person, group,
entity, or nation named by any Executive Order, the United States Department of
Justice, or the United States Treasury department as a terrorist, “Specially
Designated National or Blocked Person,” or other banned or blocked person.
entity, nation, or transaction (“SDN”) pursuant to any law, order, rule or
regulation that is enforced or administered by the Office of Foreign Assets
Control (“OFAC”); (ii) it is not engaged in this transaction, directly or
indirectly on behalf of, any such person, group, entity or nation; and (iii) it
is not in violation of Presidential Executive order 13224, the USA Patriot Act,
the Bank Secrecy Act, the Money Laundering Control Act or an regulations
promulgated pursuant thereto.

 

 
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n.     Master Landlord Consent. Notwithstanding anything to the contrary herein,
the parties agree that this Sublease shall not be effective unless and until the
written consent of Master Landlord is obtained. Sublandlord agrees to use
commercially reasonable efforts to obtain Master Landlord’s consent within
forty-five (45) days of mutual execution of this Sublease. If not received
within forty-five (45) days Subtenant has the right but not the obligation to
terminate the Sublease at no cost or expense. Sublandlord agrees to provide
access within three (3) days of receipt of Master Landlord consent.

 

[The remainder of this page intentionally left blank]

 

 
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THIS SUBLEASE AGREEMENT is executed as of the date first set forth above:

 

SUBLANDLORD:

 

INGREDION INCORPORATED,

a Delaware corporation

 

By: /s/ Rob Ritchie                                             

Name: Rob Ritchie                                              

Title: V.P. Food & Beverage                              

 

 

SUBTENANT:

 

VIVEVE MEDICAL, INC.,

a Delaware corporation

 

By: /s/ James G. Atkinson                                 

Name: James G. Atkinson                                  

Title: President/Chief Business Officer           

   

 

 
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EXHIBIT A

Master Lease

(See attached)

 

 

 
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EXHIBIT B

Subleased Premises

 

[ex10-1img001.gif]