Document:

Exhibit
10.29

 

SUBLEASE

 

THIS SUBLEASE, dated as of the 2nd day of November,
2007, by and between MEDWAVE, INC., a Minnesota corporation (“Sublessor”) and
TRANSOMA MEDICAL, INC., a Delaware corporation (“Sublessee”).

 

W I T N E S S E T H:

 

WHEREAS, Sublessor entered into that certain
Office/Warehouse Lease dated April 10, 1997 with Round Lake LLC, as predecessor
in interest to AMB Property, L.P. (“Landlord”), as amended by Lease
Modification and Extension Agreement dated March 29, 2002 between Landlord and Sublessor,
by Second Lease Modification and Extension Agreement dated April 12, 2004
between Landlord and Sublessor, by Third Lease Modification and Extension
Agreement dated January 26, 2005 between Landlord and Sublessor, and the Lease
Termination and Surrender Agreement dated October 22, 2007 between Landlord and
Sublessor (collectively, the “Master Lease”); and

 

WHEREAS, pursuant to the Master Lease, Landlord leased
to Sublessor certain premises in the building located at 4382-84 Round Lake
Boulevard, Arden Hills, Minnesota, as more particularly described in the Master
Lease; and

 

WHEREAS, a copy of the Master Lease has been
previously delivered to Sublessee, and Sublessee hereby acknowledges receipt of
same; and

 

WHEREAS, Sublessee desires to sublease from Sublessor
approximately 13,037 rentable square feet of Sublessor’s premises (the “Subleased
Premises”), and Sublessor has agreed to sublease the Subleased Premises to
Sublessee upon the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration for Subleased
Premises, the above recitals and the covenants herein contained, the parties
hereto agree as follows:

 

I.              Term.

 

A.            Sublessor
leases to Sublessee and Sublessee hires from Sublessor the Subleased Premises
for a term (“Term”) commencing: (1) with respect to the portion of the
Subleased Premises shown as Bays 5 and 6 on
attached Exhibit “A” (the “Initial Subleased Premises”),  at 12:01 a.m. on November 12, 2007 (the “Initial Premises
Commencement Date”), and with respect to the portion of the Subleased Premises
shown as Bays 7 and 8 (the “Remaining Subleased
Premises”, and together with the Initial Subleased Premises, collectively, the “Subleased
Premises”), at 12:01 a.m. on December 5, 2007 (the “Remaining Premises
Commencement Date,” and together with the Initial Premises Commencement Date
sometimes collectively referred to as the “Commencement Dates”), and expiring
on December 31, 2007 (“Expiration Date”).

 

 

B.            Sublessor
shall grant to Sublessee the right to enter the premises as necessary at any
time after the execution of this sublease for the purposed of preparing the
Subleased Premises for occupancy.

 

II.            Provisions
Constituting Sublease.

 

A.            Except as
may be inconsistent with the terms of this Sublease, all of the terms,
covenants and conditions of the Master Lease are incorporated herein by
reference as if fully set forth herein, and such terms, covenants and
conditions shall be applicable to this Sublease with the same force and effect
as if Sublessor were Landlord under the Master Lease and Sublessee were Tenant
thereunder. Sublessee shall observe and perform for the benefit of Landlord and
Sublessor each and every term, covenant, condition and agreement of the Master
Lease which Sublessor is required to observe or perform with respect to the
Subleased Premises as Tenant under the Master Lease, except that the following
sections of the Master Lease shall not apply to this Sublease:

 

1, 2, 3, 4, 5, 9, 10 and 33 of original lease; 1 and 2
of first modification and extension agreement; 3, 4, 5 and 6 of second
modification and extension agreement; 1, 2, 3, 4 and 5 of third modification
and extension agreement; the paragraph entitled “Termination Fee” in lease
termination and surrender agreement.

 

B.            Sublessor
agrees that it will not terminate or further amend or modify the Master Lease
without Sublessee’s consent, which may be granted or withheld in Sublessee’s
sole discretion.

 

III.           Rent.      Sublessee shall pay Sublessor the sum
of $20,000.00 upon execution of this Sublease and for the furniture and
equipment described in Article VI below. No other payments shall be due to
Sublessor.

 

IV.                                Condition
of Subleased Premises. Prior to the applicable Commencement Date with
respect to each portion of the Subleased Premises, Sublessor shall remove all
telephone equipment and other personal property located within the applicable
portion of the Subleased Premises being made available to Sublessee. In
addition, as of each of the applicable Commencement Dates, Sublessor shall
leave the applicable portion of the Subleased Premises in broom clean condition
and as otherwise required to be surrendered to Landlord under the terms of the
Master Lease (other than for tenant improvements such as work stations
installed by Sublessor and that Sublessee will use in its occupancy of the
Subleased Premises). Subject to the foregoing, Sublessee accepts each portion
of the Subleased Premises in its then existing condition as of the applicable
Commencement Date.

 

V.            Notices.
All notices, consents, approvals, demands and requests (collectively “Notices”)
which are required or desired to be given by either party to the other
hereunder shall be 

 

2

 

delivered in accordance with the notice provisions of the Master Lease,
except that notices shall be delivered to the following addresses:

 

	
  To Sublessor

  	
   

  	
  Medwave, Inc.

  
	
   

  	
   

  	
  P.O. Box 65

  
	
   

  	
   

  	
  Lakeville,
  Minnesota 55044

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  To Sublessee

  	
   

  	
  Transoma
  Medical, Inc.

  
	
   

  	
   

  	
  4211 Lexington Avenue
  North

  
	
   

  	
   

  	
  Suite 2244

  
	
   

  	
   

  	
  St. Paul, MN 55126

  
	
   

  	
   

  	
  Attn: Vice President
  Manufacturing Operations

  

 

 

or at such other address as Sublessor or Sublessee may
from time to time designate by notifying the other party in accordance
herewith.

 

VI.           Furniture
and Equipment. Simultaneously with the execution of this Sublease, and the
payment of the first payment due hereunder, Sublessor shall execute a Bill of
Sale to Sublessee for the furniture and equipment described on attached Exhibit
“B”.

 

VII.         Access by
Sublessor. Prior to the Remaining Premises Commencement Date, Sublessor
shall have access to the restrooms located in the Initial Subleased Premises,
and shall also have such access through Initial Subleased Premises as is
reasonably necessary to obtain access to the Remaining Subleased Premises. Notwithstanding
the foregoing provisions to the contrary, if deemed necessary by Sublessee to
maintain security within the Initial Subleased Premises, Sublessee reserves the
right at any time to cause locks to be changed within the Subleased Premises,
or any portion thereof, and to deny Sublessor access through the Initial
Subleased Premises for purposes other than use of the restrooms.

 

VIII.        Broker’s
Fees. Sublessee and Sublessor each represents and warrants that no broker,
agent or other person has been instrumental or involved in bringing about this
transaction except for the Keewaydin Group, Inc. who will not get a fee from
either party in connection with this transaction. Sublessee agrees to indemnify
and hold Sublessor harmless from and against any claims by any other broker,
agent or other person claiming a commission or other form of compensation by
virtue of having dealt with Sublessee with regard to this transaction,
including the Keewaydin Group, Inc. Sublessor agrees to indemnify and hold
Sublessee harmless from and against any claims by any other broker, agent or
other person claiming a commission or other form of compensation by virtue of
having dealt with Sublessor with regard to this transaction.

 

IX.           Governing
Law. This Sublease shall be governed by and construed in accordance with
the laws of the State of Minnesota.

 

3

 

X.            Severability.
If the application of any provision of this Sublease, or any paragraph,
sentence, clause, phrase or word in any circumstance is held invalid, the
validity of the remainder of this Sublease shall not be affected thereby, and
the remainder shall be construed as if such invalid part were never included in
the Sublease.

 

XI.           No
Representations or Warranties. Sublessee acknowledges that neither
Sublessor nor Sublessor’s agents have made any representations or warranties as
to the suitability of the Premises for the conduct of Sublessee’s business.

 

XII.         Indemnification.
Sublessee shall defend, indemnify and hold Sublessor harmless from and against
any and all claims, including reasonable attorneys’ fees, arising or alleged to
arise as a result of the use of either portion of the Subleased Premises and
other areas appurtenant to the Subleased Premises, by Sublessee, its employees,
agents, contractors, subcontractors, or guests. Except as otherwise provided in
Article IV, Sublessor shall defend, indemnify and hold Sublessee harmless from
and against any and all claims, including reasonable attorneys’ fees, arising
or alleged to arise as a result of the use of either portion of the Subleased
Premises and other areas appurtenant to the Subleased Premises, by Sublessor,
its employees, agents, contractors, subcontractors, or guests. The
indemnification obligations hereunder shall survive the execution, termination
and/or expiration of this Sublease Agreement and the Master Lease.

 

IN WITNESS WHEREOF, Sublessor and Sublessee have
executed this Sublease as of the day and year first above written.

 

	
  SUBLESSOR:

  	
  MEDWAVE, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Donna R. Lunak

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   Donna R.
  Lunak

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
       VP,
  GM

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SUBLESSEE:

  	
  TRANSOMA
  MEDICAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
       /s/
  Charles T. Coggin

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  	
   Charles T.
  Coggin

  	
   

  
	
   

  	
   

  
	
   

  	
  Its:

  	
        Chief
  Financial Officer

  	
   

  
								

 

4

 

EXHIBIT “A”

SUBLEASED
PREMISES

 

[Premises Floor
Plan]

 

5

 

EXHIBIT “B”

FURNITURE
AND EQUIPMENT

 

1.             All
work stations (including replacement panels)

 

2.             All
office desks, chairs and work tables and conference room furniture

 

3.             All
lounge room tables, chairs, miscellaneous furniture and all appliances

 

4.             All
filing cabinets in offices

 

5.             All
chairs

 

6Exhibit 10.31

 

FOURTH AMENDMENT

TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

                THIS FOURTH AMENDMENT to Amended and Restated Loan and Security
Agreement (this “Amendment ) is entered into this 29th day of October, 2007, by
and between Silicon Valley Bank (“Bank ) and Transoma Medical, Inc., a Delaware
corporation (“Borrower ) whose address is 4211 Lexington Avenue N, Suite 2244,
St. Paul, Minnesota 55126.

 

RECITALS

 

                A.            Bank and
Borrower have entered into that certain Amended and Restated Loan and Security
Agreement dated as of June 21, 2005, as amended by that certain First Amendment
to Amended and Restated Loan and Security Agreement by and between Bank and
Borrower dated as of January 4, 2007, that certain Second Amendment to Amended
and Restated Loan and Security Agreement by and between Bank and Borrower dated
as of July 19, 2007, and that certain Third Amendment to Amended and Restated
Loan and Security Agreement by and between Bank and Borrower dated as of August
22, 2007 (as the same may from time to time be further amended, modified,
supplemented or restated, the “Loan Agreement ).

 

                B.            Bank has
extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

                C.            Borrower
has requested that Bank amend the Loan Agreement to (i) increase the aggregate
amount available to be borrowed under the Loan Agreement, and (ii) revise the
requirements related to Bank’s audit of Borrower’s Collateral in Section 6.2 of
the Loan Agreement.

 

                D.           Bank has
agreed to so amend certain provisions of the Loan Agreement, but only to the
extent, in accordance with the terms, subject to the conditions and in reliance
upon the representations and warranties set forth below.

 

AGREEMENT

 

                Now, THEREFORE, in consideration of the foregoing recitals
and other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, and intending to be legally bound, the parties hereto
agree as follows:

 

                1.             Definitions.   Capitalized
terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement.

 

                2.             Amendments to Loan Agreement.

 

                                2.1          Section 2.3 (Overadvances).   The last
sentence in Section 2.3 is amended in its entirety and replaced with the
following:

 

 

                If
the Credit Extensions ever exceed $11,750,000, Borrower must immediately pay
Bank the excess.

 

                                2.2          Section 6.2 (Financial Statements,
Reports, Certificates).   Section 6.2(d) is amended
in its entirety and replaced with the following:

 

                (d)
Allow Bank to audit Borrower’s Collateral at Borrower’s expense. Such audits
will be conducted (i) within 90 days following the initial Advance but no later
than prior to the aggregate outstanding principal balance under the Committed
Revolving Line exceeding $1,000,000, and (ii) no more often than every year thereafter,
unless an Event of Default has occurred and is continuing.

 

                                2.3          Section 13 (Definitions).   The
following term and its respective definition set forth in Section 13.1 is
amended in its entirety and replaced with the following:

 

                “Committed Revolving Line” is an aggregate of Advances at
any time outstanding of up to $6,000,000 less the amount, if any, by which the
aggregate of all Credit Extensions exceeds $11,750,000.

 

                3.             Limitation of
Amendments.

 

                                3.1          The
amendments set forth in Section 2,
above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any
amendment, waiver or modification of any other term or condition of any Loan
Document, or (b) otherwise prejudice any right or remedy which Bank may now
have or may have in the future under or in connection with any Loan Document.

 

                                3.2          This
Amendment shall be construed in connection with and as part of the Loan
Documents and all terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein amended, are
hereby ratified and confirmed and shall remain in full force and effect.

 

                4.             Representations and Warranties.   To induce
Bank to enter into this Amendment, Borrower hereby represents and warrants to
Bank as follows:

 

                                4.1   Immediately after giving effect to this
Amendment (a) the representations and warranties contained in the Loan
Documents are true, accurate and complete in all material respects as of the
date hereof (except to the extent such representations and warranties relate to
an earlier date, in which case they are true and correct as of such date), and
(b) no Event of Default has occurred and is continuing;

 

                                4.2   Borrower has the power and authority to
execute and deliver this Amendment and to perform its obligations under the
Loan Agreement, as amended by this Amendment;

 

                                4.3   The organizational documents of
Borrower delivered to Bank as of September 22, 2005 remain true, accurate and
complete and have not been amended, supplemented or restated and are and
continue to be in full force and effect;

 

 

                                4.4   The execution and delivery by Borrower
of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, have been duly authorized;

 

                                4.5   The execution and delivery by Borrower
of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not and will not contravene
(a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or
decree of any court or other governmental or public body or authority, or
subdivision thereof, binding on Borrower, or (d) the organizational documents
of Borrower;

 

                                4.6   The execution and delivery by Borrower
of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not require any order,
consent, approval, license, authorization or validation of, or filing,
recording or registration with, or exemption by any governmental or public body
or authority, or subdivision thereof, binding on either Borrower, except as
already has been obtained or made; and

 

                                4.7   This Amendment has been duly executed
and delivered by Borrower and is the binding obligation of Borrower,
enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation, moratorium or other similar laws of general application and
equitable principles relating to or affecting creditors’ rights.

 

                5.             Integration.   This
Amendment and the Loan Documents represent the entire agreement about this
subject matter and supersede prior negotiations or agreements. All prior
agreements, understandings, representations, warranties, and negotiations
between the parties about the subject matter of this Amendment and the Loan
Documents merge into this Amendment and the Loan Documents.

 

                6.             Counterparts.   This
Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same
instrument.

 

                7.             Effectiveness.   This
Amendment shall be deemed effective upon (a) the due execution and delivery to
Bank of this Amendment by each party hereto, (b) Bank’s receipt of the
Acknowledgment of Amendment and Reaffirmation of Guaranty substantially in the
form attached hereto as Schedule 1, duly executed and delivered by each
Guarantor, and (c) Bank’s receipt of the Acknowledgment of Amendment and
Reaffirmation of Pledge substantially in the form attached hereto as Schedule
2, duly executed and delivered by each Pledgor.

 

[Signature page follows.]

 

 

                IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered as of the date first written above.

 

	
  BANK

  	
   

  	
  BORROWER

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Silicon Valley Bank

  	
   

  	
  Transoma Medical, Inc.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Jay McNeil

  	
   

  	
  By:

  	
  /s/ Charles T. Coggin

  	
   

  
	
  Name:

  	
  Jay McNeil

  	
   

  	
  Name:

  	
  Charles T. Coggin

  	
   

  
	
  Title:

  	
  SRM

  	
   

  	
  Title:

  	
  VP & CFO

  	
   

  

 

 

Schedule 1

 

 

ACKNOWLEDGMENT OF AMENDMENT

AND REAFFIRMATION OF GUARANTY

 

                Section 1.              Guarantor
hereby acknowledges and confirms that it has reviewed and approved the terms
and conditions of the Fourth Amendment to Amended and Restated Loan and
Security Agreement dated as of even date herewith (the “Amendment ).

 

                Section 2.              Guarantor
hereby consents to the Amendment and agrees that the Guaranty relating to the
Obligations of Borrower under the Loan Agreement shall continue in full force
and effect, shall be valid and enforceable and shall not be impaired or
otherwise affected by the execution of the Amendment or any other document or
instrument delivered in connection herewith.

 

                Section 3.              Guarantor
represents and warrants that, after giving effect to the Amendment, all
representations and warranties contained in the Guaranty are true, accurate and
complete as if made the date hereof.

 

Dated as of October 29, 2007

 

	
  GUARANTOR

  	
  Data Sciences UK, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P. Brockway

  	
   

  
	
   

  	
  Name:

  	
  Brian P. Brockway

  	
   

  
	
   

  	
  Title:

  	
  President and CEO

  	
   

  

 

 

Schedule 2

 

ACKNOWLEDGMENT OF AMENDMENT

AND REAFFIRMATION OF PLEDGE

 

 

                Section 1.              Pledgor
hereby acknowledges and confirms that it has reviewed and approved the terms
and conditions of the Fourth Amendment to Amended and Restated Loan and
Security Agreement dated as of even date herewith (the “Amendment ).

 

                Section 2.              Pledgor
hereby consents to the Amendment and agrees that the Security Agreement
securing the Obligations of Borrower under the Loan Agreement shall continue in
full force and effect, shall be valid and enforceable and shall not be impaired
or otherwise affected by the execution of the Amendment or any other document
or instrument delivered in connection herewith.

 

                Section 3.              Pledgor
represents and warrants that, after giving effect to the Amendment, all
representations and warranties contained in the Security Agreement are true,
accurate and complete as if made the date hereof.

 

Dated as of October 29, 2007

 

 

	
  PLEDGOR

  	
  Data Sciences UK, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian P. Brockway

  	
   

  
	
   

  	
  Name:

  	
  Brian P. Brockway

  	
   

  
	
   

  	
  Title:

  	
  President and CEO

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