Document:

EX-10.2

 Exhibit 10.2 
  

 
  

FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT 

among 
 MONTREIGN OPERATING
COMPANY, LLC, 
 as Borrower 

and 
 THE LENDERS PARTY HERETO,

 as Lenders 
 and 

FIFTH THIRD BANK, 
 as
Administrative Agent 
 dated as of May 26, 2017 

************************************************* 

FIFTH THIRD BANK, 
 as Joint Lead
Arranger and Joint Book Runner 
 NOMURA SECURITIES INTERNATIONAL, INC., 

as Joint Lead Arranger and Joint Book Runner 
  

 
  

 FIRST AMENDMENT TO 

REVOLVING CREDIT AGREEMENT 

THIS FIRST AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “Amendment”), dated as of May 26, 2017 and effective as of the
Effective Date (as hereinafter defined), is made and entered into by and among MONTREIGN OPERATING COMPANY, LLC, a New York limited liability company (the “Borrower”), EMPIRE RESORTS REAL ESTATE I, LLC, a New York limited liability
company (the “Golf Sub”), EMPIRE RESORTS REAL ESTATE II, LLC, a New York limited liability company (the “EV Sub”), MONTREIGN HOLDING COMPANY, LLC, a New York limited liability company (the “Equity
Pledgor”), FIFTH THIRD BANK, as administrative agent for the Secured Parties (in such capacity, together with its successors and assigns in such capacity, the “Administrative Agent”) and each of the Lenders party hereto.

 RECITALS 
 A. The Borrower,
the Administrative Agent and the Lenders are parties to that certain Revolving Credit Agreement, dated as of January 24, 2017 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Loan
Agreement”), by and among the Borrower, the Administrative Agent, the banks, financial institutions and other entities from time to time party thereto in the capacity of lenders (the “Lenders”), and the other agents and
arrangers party thereto. 
 B. The Borrower has requested that the Lenders agree, subject to the conditions and on the terms set forth in
this Amendment, to amend certain provisions of the Loan Agreement. 
 C. The Lenders are willing to agree to such amendments, subject to the
conditions and on the terms set forth below. 
 AGREEMENT 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and each of
the Lenders party hereto agree as follows: 
 1. Definitions. Except as otherwise expressly provided herein, capitalized terms used
in this Amendment shall have the meanings given in the Loan Agreement (after giving effect to this Amendment), and the rules of interpretation set forth in the Loan Agreement shall apply to this Amendment. 

  
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 2. Amendments to Loan Agreement. 

(a) Clause (a)(vi) of the definition of “Consolidated Adjusted EBITDA” in Section 1.01 of the Loan Agreement is hereby
deleted in its entirety and replaced with the following: 
 (vi) all transaction fees, charges and other amounts related to
the Transactions occurring on or about the Closing Date and the transactions contemplated by the First Amendment occurring on or about the First Amendment Effective Date (in each case, including any financing fees, legal fees and expenses, due
diligence fees or any other fees and expenses in connection therewith), 
 (b) Section 1.01 of the Loan Agreement is hereby amended by
inserting the following definitions in alphabetical order: 
 “First Amendment” shall mean that certain
First Amendment to Revolving Credit Agreement, dated as of May 26, 2017, and effective as of the First Amendment Effective Date, by and among the Borrower, the Administrative Agent and the other parties party thereto. 

“First Amendment Effective Date” shall mean the date the First Amendment is effective in accordance with its
terms. 
 (c) Section 6.01(p) of the Loan Agreement is hereby amended by deleting the number “$485,000,000” and replacing such
number with “$520,000,000”. 
 3. Representations and Warranties. To induce the Lenders to agree to this Amendment, the
Borrower represents to the Lenders and the Administrative Agent that as of the date hereof and as of the Effective Date: 
 (a) the
Borrower, the Equity Pledgor and each of the other Loan Parties has all power and authority to enter into, execute and deliver the First Amendment Documents (as defined below) to which each is a party and to carry out the transactions contemplated
by, and to perform its obligations under or in respect of, the First Amendment Documents to which the Borrower, the Equity Pledgor and each of the other Loan Parties is a party; 

(b) the execution and delivery of the First Amendment Documents and the performance of the obligations of the Borrower, the Equity Pledgor and
each of the other Loan Parties under or in respect of the First Amendment Documents to which the Borrower, the Equity Pledgor or each such other Loan Party is a party have been duly authorized by all necessary corporate, partnership or limited
liability company action on the part of the Borrower, the Equity Pledgor and each of the other Loan Parties; 
 (c) the execution and
delivery of the First Amendment Documents and the performance of the obligations of the Borrower, the Equity Pledgor and each of the other Loan Parties under or in respect of the First Amendment Documents to which each is a party does not and will
not (i) violate (A) any provision of law, statute, rule or regulation applicable to such 

  
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Person in any material respect, (B) any Governing Document of any such Person, (C) any order of any Governmental Authority or arbitrator applicable to such Person or (D) any
Contractual Obligation of any such Person which in the case of this clause (D), could reasonably be expected to have a Material Adverse Effect, (ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time
or both) a default under, or give rise to any right to accelerate or to require the prepayment, repurchase or redemption of any obligation under any such Contractual Obligation or other instrument in which, in the case of this clause (ii) only,
could reasonably be expected to have a Material Adverse Effect, or (iii) result in the creation or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by any such Person (other than Liens
created under the Security Documents and the Term Facility Documents); 
 (d) the First Amendment Documents have been duly executed and
delivered by the Borrower, the Equity Pledgor and each of the other Loan Parties, as applicable, and constitute legal, valid and binding obligations of such Person, enforceable against such Person in accordance with their terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law; 

(e) no event has occurred and is continuing or will result from the execution and delivery of the First Amendment Documents or the performance
by the Borrower, the Equity Pledgor or any other Loan Party of their obligations hereunder, under the Loan Agreement or under the other Loan Documents that would constitute a Default or an Event of Default; and 

(f) each of the representations and warranties made by the Borrower, the Equity Pledgor or any other Loan Party in or pursuant to the Loan
Documents, as amended hereby, shall be true and correct in all material respects as if made on and as of the Effective Date, except for representations and warranties expressly stated to relate to a specific earlier date, or which by their context
relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date; provided that, if a representation and warranty is qualified as to materiality, with
respect to such representation and warranty, the applicable materiality qualifier set forth above shall be disregarded for purposes of this representation and warranty. 

4. No Waiver. Notwithstanding anything to the contrary set forth in this Amendment, this Amendment does not constitute a waiver of any
Default or Event of Default, or waiver of compliance with, or modification or amendment of, any other term or condition, under the Loan Documents. 

5. Effectiveness of this Amendment. This Amendment shall be effective only if and when: 

(a) this Amendment is signed by the Borrower, the Equity Pledgor, the other Loan Parties party hereto, the Administrative Agent and the
Required Lenders, and each such party shall have delivered their fully executed signature pages hereto to the Administrative Agent; 

  
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 (b) the Borrower shall have delivered to the Administrative Agent an amendment to the Term Loan
Agreement, executed by the Borrower, the Equity Pledgor, the other Loan Parties party thereto, the Term Loan Administrative Agent and the other parties thereto, which amendment shall (i) provide for an increase in Term B Loans (as defined in
the Building Loan Agreement) in an aggregate principal amount of not more than $35,000,000 and (ii) have been executed and delivered by the parties thereto and shall be in full force and effect; 

(c) each of the representations and warranties contained in Section 3 of this Amendment shall be true and correct in
all respects and, in furtherance thereof, the Borrower shall have received all necessary approvals and/or consents from the Governmental Authorities (including Gaming Authorities and the IDA) in form and substance reasonably satisfactory to the
Administrative Agent for the execution and delivery of this Amendment and the performance of the obligations of the Borrower and the other Loan Parties under or in respect of this Amendment; 

(d) the Administrative Agent shall have received (i) an Effective Date certificate dated as of the Effective Date and signed by a
Financial Officer or other authorized officer of the Borrower, and (ii) a Solvency Certificate dated as of the Effective Date and signed by the chief financial officer of the Borrower, in each case, in form and substance reasonably satisfactory
to the Administrative Agent (such certificates, together with this Amendment and each other document required to be executed by the Borrower, the Equity Pledgor and the other Loan Parties under this Amendment, the “First Amendment
Documents”); and 
 (f) the Lenders, the Agents and the Lead Arranger shall have received all Fees required to be paid hereunder,
under the Loan Agreement or under any engagement or fee letter entered into by such party and the Borrower, and all expenses required to be paid hereunder, under the Loan Agreement or under any engagement or fee letter entered into by such party and
the Borrower for which invoices have been presented, on or before the Effective Date, including for each Lender executing this Amendment, an amendment fee equal to 0.05% of such Lender’s Commitments and Loans immediately prior to the Effective
Date. 
 This Amendment shall be deemed to be effective on the date (the “Effective Date”) on which each of the foregoing
conditions is satisfied (such conditions to be satisfied no later than 5pm EST on May 26, 2017). 
 6. Acknowledgements. By
executing this Amendment, the Borrower, the Equity Pledgor and each of the other Loan Parties (a) acknowledges that it expects to receive substantial direct and indirect benefits as a result of this Amendment and the transactions contemplated
hereby, (b) consents to this Amendment and the performance by the Borrower, the Equity Pledgor and each of the other Loan Parties of their obligations hereunder, (c) acknowledges that notwithstanding the execution and delivery of this
Amendment, the obligations of each of the Borrower, the Equity Pledgor and each of the other Loan Parties under each of the other Loan Documents to which such Person is a party (including, without limitation, its respective guarantees, pledges,
grants of security interests and other obligations thereunder), are not 

  
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impaired or affected and each such Loan Document continues in full force and effect and (d) affirms and ratifies, to the extent it is a party thereto, each Loan Document with respect to all
of the Obligations as expanded or amended hereby. 
 7. No Novation. The amendment of the Loan Agreement as contemplated hereby shall
not be construed to (and is not intended to) novate, discharge or release the Borrower, the Equity Pledgor or any other Loan Party from any obligations owed to the Lenders or the Administrative Agent under the Loan Agreement or any other Loan
Documents, which shall remain owing under the Loan Agreement and the other Loan Documents. In furtherance of the foregoing, this Amendment shall not extinguish the Obligations outstanding under the Loan Agreement or any other Loan Documents. 

8. Consent. Upon the receipt of the signatures of each of the Lenders party to this Amendment, each of the Lenders party hereto shall
be deemed to have acknowledged receipt of, and consented to and approved the amendments and modifications to the Loan Documents set forth herein and hereby authorizes and directs the Administrative Agent to execute and deliver this Amendment and any
other First Amendment Document to which the Administrative Agent is a party. 
 9. Miscellaneous. THIS AMENDMENT, AND ANY
INSTRUMENT OR AGREEMENT REQUIRED HEREUNDER (TO THE EXTENT NOT OTHERWISE EXPRESSLY PROVIDED FOR THEREIN) AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HERETO AND THERETO, HEREUNDER AND THEREUNDER, SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED
BY, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICT OF LAWS PROVISIONS THAT WOULD RESULT IN THE APPLICATION OF LAWS OTHER THAN THE LAW OF THE STATE OF NEW YORK). This Amendment may be executed in one or more duplicate counterparts
and, subject to the other terms and conditions of this Amendment, when signed by all of the parties listed below shall constitute a single binding agreement. Delivery of an executed signature page to this Amendment by facsimile transmission or
electronic mail shall be as effective as delivery of a manually signed counterpart of this Amendment. Except as amended hereby, all of the provisions of the Loan Agreement and the other Loan Documents shall remain in full force and effect except
that each reference to the “Loan Agreement” or words of like import in any Loan Document, shall mean and be a reference to the Loan Agreement, as applicable, as amended hereby. This Amendment shall be deemed a “Loan Document” as
defined in the Loan Agreement. Sections 9.11 and 9.15 of the Loan Agreement shall apply to this Amendment and all past and future amendments to the Loan Agreement and the other Loan Documents as if expressly set forth herein. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
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 IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed by their officers
or partners thereunto duly authorized as of the day and year first above written. 
 MONTREIGN OPERATING COMPANY, LLC, 

a New York limited liability company 
  

			
	By:	 	 /s/ Ryan Eller

	Name:	 	Ryan Eller
	Title:	 	President

 [Signature Page to First Amendment to Revolving Credit Agreement] 

 MONTREIGN HOLDING COMPANY, LLC, 

a New York limited liability company 
  

			
	By:	 	 /s/ Ryan Eller

	Name:	 	Ryan Eller
	Title:	 	President

 [Signature Page to First Amendment to Revolving Credit Agreement] 

 EMPIRE RESORTS REAL ESTATE I, LLC, 

a New York limited liability company 
  

			
	By:	 	 /s/ Ryan Eller

	Name:	 	Ryan Eller
	Title:	 	President

 [Signature Page to First Amendment to Revolving Credit Agreement] 

 EMPIRE RESORTS REAL ESTATE II, LLC, 

a New York limited liability company 
  

			
	By:	 	 /s/ Ryan Eller

	Name:	 	Ryan Eller
	Title:	 	President

 [Signature Page to First Amendment to Revolving Credit Agreement] 

 FIFTH THIRD BANK, 

as Administrative Agent 
  

			
	By:	 	 /s/ Knight D. Kieffer

	Name:	 	Knight D. Kieffer
	Title:	 	Vice President

 [Signature Page to First Amendment to Revolving Credit Agreement] 

 FIFTH THIRD BANK, 

as a Lender 
  

			
	By:	 	 /s/ Knight D. Kieffer

	Name:	 	Knight D. Kieffer
	Title:	 	Vice President

 [Signature Page to First Amendment to Revolving Credit Agreement] 

 NOMURA CORPORATE FUNDING AMERICAS, LLC, 

as a Lender 
  

			
	By:	 	 /s/ G. Andrew Keith

	Name:	 	G. Andrew Keith
	Title:	 	Executive Director

  
 13ex4-1.htm

Exhibit 4.1

 

 

THESE SECURITIES AND THE UNDERLYING SHARES OF COMMON STOCK HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES, SUBJECT TO COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.

 

COMMON STOCK PURCHASE WARRANT

 

Issue Date: May 25, 2017

 

To Purchase 73,432 Shares of Common Stock of

 

VIVEVE MEDICAL, INC.

 

THIS COMMON STOCK PURCHASE WARRANT CERTIFIES that, for value received, CRG Partners III - Parallel Fund "A" L.P. (the “Holder”), is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Issue Date (the “Initial Exercise Date”) and on or prior to the close of business on the earlier of the tenth anniversary of the Issue Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Viveve Medical, Inc., a Delaware corporation (the “Company”), up to an aggregate of 73,432 shares (the “Warrant Shares”) of the Company’s common stock, par value $0.0001 per share (the “Common Stock”) in accordance with Section 2 or Section 3 herein. The purchase price of one share of Common Stock (the “Exercise Price”) under this Warrant shall be $9.50, subject to adjustment hereunder. The Exercise Price and the number of Warrant Shares for which the Warrant is exercisable shall be subject to adjustment as provided herein. 

 

1.     Authorization of Shares. The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).

 

 

 

 

 

2.     Exercise of Warrant. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date by the surrender of this Warrant and the Notice of Exercise Form attached hereto as Exhibit A duly executed, at the office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of such Holder appearing on the books of the Company). Upon payment of the Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank, the Holder shall be entitled to receive a certificate for the number of Warrant Shares so purchased. Certificates for Warrant Shares purchased hereunder shall be delivered to the Holder within five (5) business days after the date on which this Warrant shall have been exercised as aforesaid. This Warrant shall be deemed to have been exercised and such certificate or certificates shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such Warrant Shares for all purposes, as of the date the Warrant has been exercised by payment to the Company of the Exercise Price and all taxes required to be paid by the Holder, if any, prior to the issuance of such shares, have been paid. If the Company fails to deliver to the Holder a certificate or certificates representing the number of Warrant Shares exercised pursuant to this Section 2 by the third Trading Day after the date of exercise, then the Holder will have the right to rescind such exercise by written notice to the Company.

 

3.     Cashless Exercise. Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Initial Exercise Date and on or before the Termination Date, by means of a “cashless exercise” in which the Holder shall be entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where:

 

 

	
 
	
(A) =
	
 the VWAP on the Trading Day immediately preceding the date on which Holder elects to exercise this Warrant by means of a “cashless exercise,” as set forth in the applicable Notice of Exercise;

	 	 	 
	 	(B) = 	 the Exercise Price of this Warrant, as adjusted hereunder; and
	 	 	 
	 	(X) =	 the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

  

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the principal Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if any of the NASDAQ markets or exchanges is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported on the OTCQX, OTCQB or OTC Pink Marketplace maintained by the OTC Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the volume weighted average price of the Common Stock on the first such facility (or a similar organization or agency succeeding to its functions of reporting prices), or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. “Trading Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the NYSE MKT, the NASDAQ Capital Market, the NASDAQ Global Market, the NASDAQ Global Select Market, the New York Stock Exchange, the OTC Bulletin Board, the OTCQB, the OTCQX or the OTC Pink Marketplace (or any successors to any of the foregoing). “Trading Day” means a day on which the principal Trading Market is open for trading; provided that if the Common Stock is not then listed or quoted on a Trading Market, “Trading Day” shall mean business day.

 

 

2

 

 

Notwithstanding anything herein to the contrary, on the Termination Date, this Warrant shall be automatically exercised via cashless exercise pursuant to this Section 3.

 

4.     Delivery of New Warrants Upon Exercise. If this Warrant shall have been exercised in part, the Company shall, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 

 

5.     No Fractional Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

 

6.     Charges, Taxes and Expenses. Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder.

 

7.     Closing of Books. The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

 

8.     Division and Combination. 

 

(a)     This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the Holder’s and the denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney. The Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.

 

(b)     The Company shall prepare, issue and deliver at its own expense (other than transfer taxes) the new Warrant or Warrants under this Section 8.

 

(c)     The Company agrees to maintain, at its aforesaid office, books for the registration of this Warrant and any other new Warrants that may be issued upon the division or combination of this Warrant under this Section 8.

 

 

3

 

 

9.            No Rights as Shareholder until Exercise. This Warrant does not entitle the Holder to any voting rights or other rights as a shareholder of the Company prior to the exercise hereof. Upon the surrender of this Warrant and the payment of the aggregate Exercise Price, the Warrant Shares so purchased shall be and be deemed to be issued to such Holder as the record owner of such shares as of the close of business on the later of the date of such surrender or payment. 

 

10.          Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

 

11.          Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall be a Saturday, Sunday or a legal holiday, then such action may be taken or such right may be exercised on the next succeeding day not a Saturday, Sunday or legal holiday.

 

12.          Adjustments of Exercise Price and Number of Warrant Shares. The number and kind of securities purchasable upon the exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time upon the happening of any of the following. In case the Company shall (i) pay a dividend in shares of Common Stock or make a distribution in shares of Common Stock to holders of its outstanding Common Stock, (ii) subdivide its outstanding shares of Common Stock into a greater number of shares, (iii) combine its outstanding shares of Common Stock into a smaller number of shares of Common Stock, or (iv) issue any shares of its capital stock in a reclassification of the Common Stock, then in each such case the number of Warrant Shares purchasable upon exercise of this Warrant immediately prior thereto shall be adjusted so that the Holder shall be entitled to receive the kind and number of Warrant Shares or other securities of the Company which it would have owned or have been entitled to receive had such Warrant been exercised in advance thereof. Upon each such adjustment of the kind and number of Warrant Shares or other securities of the Company which are purchasable hereunder, the Holder shall thereafter be entitled to purchase the number of Warrant Shares or other securities resulting from such adjustment at an Exercise Price per Warrant Share or other security obtained by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares purchasable pursuant hereto immediately prior to such adjustment and dividing by the number of Warrant Shares or other securities of the Company resulting from such adjustment. An adjustment made pursuant to this paragraph shall become effective immediately after the effective date of such event retroactive to the record date, if any, for such event.

 

 

4

 

 

13.          Reorganization, Reclassification, Merger, Consolidation or Disposition of Assets. In case the Company shall reorganize its capital, reclassify its capital stock, consolidate or merge with or into another corporation (where the Company is not the surviving corporation or where there is a change in or distribution with respect to the Common Stock of the Company), or sell, transfer or otherwise dispose of all or substantially all its property, assets or business to another corporation and, pursuant to the terms of such reorganization, reclassification, merger, consolidation or disposition of assets, shares of common stock of the successor or acquiring corporation, or any cash, shares of stock or other securities or property of any nature whatsoever (including warrants or other subscription or purchase rights) in addition to or in lieu of common stock of the successor or acquiring corporation (“Other Property”), are to be received by or distributed to the holders of Common Stock of the Company, then the Holder shall have the right thereafter to receive, at the option of the Holder, upon exercise of this Warrant, the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and Other Property receivable upon or as a result of such reorganization, reclassification, merger, consolidation or disposition of assets by a Holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such event. In case of any such reorganization, reclassification, merger, consolidation or disposition of assets, the successor or acquiring corporation (if other than the Company) shall expressly assume the due and punctual observance and performance of each and every covenant and condition of this Warrant to be performed and observed by the Company and all the obligations and liabilities hereunder, subject to such modifications as may be deemed appropriate (as determined in good faith by resolution of the Board of Directors of the Company) in order to provide for adjustments of Warrant Shares for which this Warrant is exercisable which shall be as nearly equivalent as practicable to the adjustments provided for in this Section 13 and Section 12. For purposes of this Section 13, “common stock of the successor or acquiring corporation” shall include stock of such corporation of any class which is not preferred as to dividends or assets over any other class of stock of such corporation and which is not subject to redemption and shall also include any evidences of indebtedness, shares of stock or other securities which are convertible into or exchangeable for any such stock, either immediately or upon the arrival of a specified date or the happening of a specified event and any warrants or other rights to subscribe for or purchase any such stock. The foregoing provisions of this Section 13 shall similarly apply to successive reorganizations, reclassifications, mergers, consolidations or disposition of assets. 

 

14.          No Impairment. The Company shall not, by amendment of its Certificate of Incorporation or through a reorganization, transfer of assets, consolidation, merger, dissolution, issue, or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be observed or performed under this Warrant by Company, but shall at all times in good faith assist in carrying out of all the provisions of Sections 12 and 13 and in taking all such action as may be necessary or appropriate to protect Holder’s rights under this Section 14 against impairment. 

 

15.          Voluntary Adjustment by the Company. The Company may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

 

 

5

 

 

16.          Notice of Adjustment. Whenever the number of Warrant Shares or number or kind of securities or other property purchasable upon the exercise of this Warrant or the Exercise Price is adjusted, as herein provided, the Company shall give notice thereof to the Holder, which notice shall state the number of Warrant Shares (and other securities or property) purchasable upon the exercise of this Warrant and the Exercise Price of such Warrant Shares (and other securities or property) after such adjustment, setting forth a brief statement of the facts requiring such adjustment and setting forth the computation by which such adjustment was made.

 

17.          Certificate as to Adjustments. Upon each adjustment of the Exercise Price, Company at its expense shall promptly compute such adjustment, and furnish Holder with a certificate of its Chief Financial Officer setting forth such adjustment and the facts upon which such adjustment is based. Company shall, upon written request, furnish Holder a certificate setting forth the Exercise Price in effect upon the date thereof and the series of adjustments leading to such Exercise Price.

 

18.          Notice of Corporate Action. If at any time:

 

(a)     the Company shall take a record of the holders of its Common Stock for the purpose of entitling them to receive a dividend or other distribution, or any right to subscribe for or purchase any evidences of its indebtedness, any shares of stock of any class or any other securities or property, or to receive any other right, or

 

(b)     there shall be any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any consolidation or merger of the Company with, or any sale, transfer or other disposition of all or substantially all the property, assets or business of the Company to, another corporation or,

 

(c)     there shall be a voluntary or involuntary dissolution, liquidation or winding up of the Company;

 

then, in any one or more of such cases (but not in such cases if the rights of the holder or holders of Common Stock will not be materially affected thereby), the Company shall give to Holder (i) at least five (5) business days’ prior notice of the date on which a record date shall be selected for such dividend, distribution or right or for determining rights to vote in respect of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, liquidation or winding up, and (ii) in the case of any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up, at least five (5) business days’ prior notice of the date when the same shall take place. Such notice in accordance with the foregoing clause also shall specify (i) the date on which any such record is to be taken for the purpose of such dividend, distribution or right, the date on which the holders of Common Stock shall be entitled to any such dividend, distribution or right, and the amount and character thereof, and (ii) the date on which any such reorganization, reclassification, merger, consolidation, sale, transfer, disposition, dissolution, liquidation or winding up is to take place and the time, if any such time is to be fixed, as of which the holders of Common Stock shall be entitled to exchange their Warrant Shares for securities or other property deliverable upon such disposition, dissolution, liquidation or winding up. Each such written notice shall be sufficiently given if addressed to Holder at the last address of Holder appearing on the books of the Company and delivered in accordance with Section 20(c).

  

 

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19.         Authorized Shares. The Company covenants that during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the trading market upon which the Common Stock may be listed.      

 

20.          Miscellaneous.

 

(a)              Jurisdiction. This Warrant shall constitute a contract under the laws of California, without regard to its conflicts of laws principles or rules.

 

(b)             Restrictions. The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, will have restrictions upon resale imposed by state and federal securities laws.

 

(c)             Notices. Any notice, request or other document required or permitted to be given or delivered pursuant to this Warrant shall be deemed to have been sufficiently given and received for all purposes when delivered by hand or by facsimile or email that has been confirmed as received by 5:00 P.M. on a business day, one (1) business day after being sent by nationally recognized overnight courier after 5:00 P.M. on any day, or five (5) business days after being sent by certified or registered mail, postage and charges prepaid, return receipt requested, to the following addresses:

 

If to the Company:               Viveve Medical, Inc.

345 Inverness Drive South, Suite 250

Englewood, Colorado 80112

Attn: Scott C. Durbin

Fax: (408) 530-1919

Email: sdurbin@viveve.com

 

If to the Holder:                    At the Holder’s address in the Company’s Warrant register.

 

(d)             Limitation of Liability. No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant or purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company.

 

 

7

 

 

(e)             Successors and Assigns. Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors of the Company and the successors and permitted assigns of Holder. The provisions of this Warrant are intended to be for the benefit of all Holders from time to time of this Warrant and shall be enforceable by any such Holder or holder of Warrant Shares.

 

(f)              Amendment. This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Holder and the Company. 

 

(g)             Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

 

(h)             Headings. The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

 

(i)              Compliance with Securities Laws on Transfer. This Warrant and the Warrant Shares issuable upon exercise of this Warrant may not be transferred or assigned in whole or in part without compliance with applicable U.S. federal and state securities laws by the transferor and the transferee (including, without limitation, the delivery of investment representation letters and legal opinions reasonably satisfactory to Company, as reasonably requested by Company); provided that (1) no opinion of counsel shall be required for the transfer of the Warrant Shares in accordance with Rule 144, and (2) no opinion of counsel shall be required for the transfer of the Warrant to an affiliate of the Holder or, if the holder is an investment fund, a fund under common management with the Holder so long as, in the case of this clause (2), the transferee in writing represents and warrants to Company that (i) such transferee is an “accredited investor” (as defined under Rule 501(a) promulgated under the Securities Act and (ii) such transferee is acquiring this Warrant and the Warrant Shares for investment and not with a view to the further distribution or transfer thereof. The Warrant Shares shall not be subject to a restrictive legend if at the time of issuance, such shares are eligible for resale under Rule 144 (without volume or manner of sale restrictions) by the Holder.

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized.

 

 

Dated: May 25, 2017

	
 
	
VIVEVE MEDICAL, INC.

 

 

By:  /s/ Patricia Scheller___________________________

Name: Patricia Scheller

Title: Chief Executive Officer 

 

 

9

 

 

EXHIBIT A

 

NOTICE OF EXERCISE

 

To:     VIVEVE MEDICAL, INC.

 

(1)     The undersigned hereby elects to purchase ________ Warrant Shares of VIVEVE MEDICAL, INC. pursuant to the terms of the attached Warrant, and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.

 

(2)     Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

 Name:         _________________________________

 

 Address:                                                                               

 

                                                                                               

 

SSN/Tax ID:                                                                                         

 

The Warrant Shares shall be delivered to the following:

 

   __________________________________________

 

   __________________________________________

 

   __________________________________________

 

HOLDER NAME

 

By: ___________________________________________

Name:

Title:

 

Dated: ________________________________________

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