Document:

Exhibit

 

Strategic Operating Committee Incentive Program

Effective Date: July 1, 2019

This Program is proprietary and confidential to HomeTrust Bancshares, Inc. and its employees and should not be shared outside the organization other than as required by executive compensation reporting and disclosure requirements
Introduction

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HomeTrust Bancshares, Inc. (“HomeTrust” or the “Bank”) is committed to rewarding senior executives for their contributions to the Bank’s success. The HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Program (the “Program”) is part of a total compensation package which includes base salary, annual incentives and benefits. The Program is designed to:
		
	▪
	Focus executives on building a strong foundation for success and sustainability over the long term.

		
	▪
	Recognize and reward achievement of the Bank’s annual business goals.

		
	▪
	Focus executives’ attention on key business metrics.

		
	▪
	Motivate and reward superior performance.

		
	▪
	Attract and retain talent needed for the Bank’s success.

		
	▪
	Be competitive with the market.

		
	▪
	Encourage teamwork and collaboration.

		
	▪
	Ensure incentives are appropriately risk-balanced.

		
	▪
	Recognize the accomplishment of key business goals that are critical to long-term success of the organization that are less quantifiable and/or more subjective in nature by utilizing a discretionary component.

		
	▪
	Assure alignment of the executive’s behavior, consistent with our culture, core values, and code of conduct.

Effective Date, Program and Administrator
The Plan is effective July 1, 2018, and will remain in effect until such time that HomeTrust Bank issues a subsequent plan that by its terms expressly replaces and supersedes it (the "Subsequent Plan"). Upon HomeTrust Bank’s issuance of the Subsequent Plan, this Plan shall automatically terminate and no participant in this Plan shall thereafter be eligible to earn any compensation under this Plan, regardless of whether the participant executes or otherwise signifies his or her agreement to the Subsequent Plan. HomeTrust Bank is free to amend or modify this Plan as it deems appropriate. 
This Plan will be approved annually by the Compensation Committee (the “Committee”) of the Board of Directors. 
Participation and Eligibility
Each year, employees are selected for Program participation:
		
	▪
	CEO participation is determined by the Compensation Committee. 

		
	▪
	The CEO recommends the other executive officers for approval by the Compensation Committee.

		
	▪
	Other participants are added by CEO. 

Participants are subject to meeting the following requirements:
		
	▪
	New hires must be employed prior to April 1 of the Program year to be eligible to participate in the Program for the performance period. Employees hired after that date must wait until the next fiscal year to be eligible for an award under the Program. Eligibility begins the first full month worked. Participants receive a prorated award using full months worked during the Program year.

		
	▪
	Awards under the Program shall be limited to individuals employed on a full-time basis by HomeTrust on the date of payment, except in the case of disability, death, or retirement. 

		
	▪
	Participants on a performance improvement plan or with an unsatisfactory performance rating at the time of payment or who have given notice of resignation at the time of payment are not eligible to receive an award.

Performance Period
The Program operates on a fiscal year schedule - July 1 through June 30.
Incentive Award Opportunities 
Each participant will have a specified target annual incentive award opportunity, expressed as a percentage of the participant’s base salary. Incentive award opportunities are based on the participant’s job duties and responsibilities and competitive practices.

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Performance Goals and Award Levels 
Program goals will be established using three performance levels:
		
	▪
	Threshold - is the minimum level of performance in which the Bank would consider it reasonable to provide an award. If performance is below Threshold, the payout for that goal is zero. Performance at Threshold allows for payment equal to 50% of the participant’s targeted annual incentive award opportunity. 

		
	▪
	Target - is the level of performance that the Bank considers “good” performance. Goals at this level are challenging but considered reasonably obtainable. Performance at Target allows for payment equal to 100% of the participant’s targeted annual incentive award opportunity. 

		
	▪
	Stretch - is the level of performance the Bank considers outstanding performance. Goals at this level are challenging and considered a best case scenario. Performance at Stretch allows for payment equal to 150% of the participant’s targeted annual incentive award opportunity, which is the highest amount to be paid under the Program. 

Performance between Threshold and Target and Target and Stretch are interpolated to provide for a range of payouts between 50% to 150% of a participant’s targeted annual incentive, based on incremental results between Threshold and Stretch performance.
Incentive Program Performance Measures and Weights 
The Program uses a balanced scorecard with performance measures weighted between Corporate and Team/Individual goals. All Corporate goals, weightings and Team/Individual goals for the CEO and Executive Officers are presented to the Compensation Committee for review and approval. Team/Individual goals for other Program participants are approved by the CEO.
The following schedules are attached to this Program document. Schedules A and B are approved by the Compensation Committee prior to the beginning of each performance period:
Schedule A: Award Percentages and Performance Measures Weightings
Schedule B: Bank Goals, Weightings and Definitions
Schedule C: Example Payout Calculation
Program Discretion 
The Program provides discretion that allows the Compensation Committee to modify the final award for Corporate and Team/Individual goals based on a subjective assessment of performance and contributions to the Bank’s success.
Award Distributions 
At the end of the fiscal year, performance is measured and awards amounts are calculated. Awards are paid in cash (generally) within two and one half months following the end of the fiscal year or as soon as practical after approval of the award payout by the Committee.
Awards are paid out as a percentage of a participant’s annual base earnings as of June 30th. Base earnings are defined as the base salary in effect on June 30th and excludes referral fees, commissions and any other previously-paid performance compensation.
Payments under this Program are considered taxable income to participants in the year paid and will be subject to tax withholding. 
Risk Mitigation
HomeTrust seeks to appropriately balance risk with financial rewards in the Program design and implementation. The compensation arrangements in this Program are designed to be sufficient to incent participants to achieve approved strategic and tactical goals while at the same time not be excessive or lead to material financial loss to the Bank. 
Awards may be reduced or eliminated for credit quality and/or regulatory action. Unless the Compensation Committee deems otherwise, awards will not be paid, regardless of Corporate or Team/Individual performance, if 1) any regulatory agency issues a formal, written enforcement action, memorandum of understanding or other negative directive action where the Committee considers it imprudent to provide awards under this Program, and/or 2) after a review of the Company’s credit quality measures the Committee considers it imprudent to provide awards under this Program.

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Coordination with Other Incentives
The Program does not inhibit the Bank from approving Program participants for inclusion in other Bank plans, bonuses, commissions and/or incentive compensation arrangements. The Board of Directors or the Committee may make discretionary bonuses to participants regardless of their participation in this Program.
Please see “Terms and Conditions” for further details on the Program provisions. 

Terms and Conditions
The information represented below is subject to change and does not constitute a binding agreement. 
Definition of “Program”
“Program” refers to the HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Program.
Definition of the “Bank”
For the purposes of this Program, the “Bank” refers to HomeTrust Bancshares, Inc. and HomeTrust Bank, collectively.
Definition of “Board of Directors”
For the purposes of this Program, “Board of Directors” refers to the boards of directors of HomeTrust Bancshares, Inc. and HomeTrust Bank, collectively.
Effective Date
This Program became effective July 1, 2018. The Program may be amended from time to time with the approval of the Compensation Committee of the Board.
Performance Period/Program Year
The performance period is July 1 through June 30 and may be referred to in this document as the Program year.
Program Administration
The Program is authorized by the Board of Directors. Each of the Board and the Compensation Committee has the authority to make or nullify any rules and procedures, as necessary, for proper administration of the Program. 
The Program will be reviewed annually by the Compensation Committee to ensure proper alignment with the Bank’s business objectives. 
The Compensation Committee will approve all final award distributions paid to Program participants. Any determination by the Compensation Committee will be final and binding. 
Program Changes or Discontinuance
The Bank has developed the Program on the basis of existing business, market and economic conditions; current services; and staff assignments. If substantial changes occur that affect these conditions, services, assignments, or forecasts, the Bank may add to, amend, modify or discontinue any of the terms or conditions of the Program at any time. Examples of substantial changes may include mergers, dispositions or other corporate transactions, changes in laws or accounting principles or other events that would in the absence of some adjustment, frustrate the intended operation of this arrangement.
The Compensation Committee may, at its sole discretion, waive, change or amend any of the Program as it deems appropriate. 
Program Interpretation
If there is any ambiguity as to the meaning of any terms or provisions of this Program or any questions as to the correct interpretation of any information contained therein, the Bank's interpretation expressed by the Compensation Committee will be final and binding. 
Participation
CEO participation is determined by the Compensation Committee. Executive officers are recommended by CEO and approved by the Compensation Committee. Other employees may participate upon approval of the CEO. 

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New employees must be employed by April 1 of the performance period (July 1 - June 30) to be considered for participation in a given Program year.
Award Determinations 
Program participants are eligible for a distribution under the Program only upon attainment of certain performance objectives defined under the Program and after the approval of the award by the Compensation Committee.
Performance at Threshold, Target and Stretch are interpolated to encourage and reward incremental performance improvement. 
Award Distributions
Awards are paid in cash (generally) within two and one half months following the end of the fiscal year or as soon as practical after approval of the award payout by the Compensation Committee.
Awards are paid out as a percentage of a participant’s annual base earnings as of June 30. Base earnings are defined as base salary in effect as of June 30 and excludes referral fees, commissions and any other previously-paid performance compensation.
Incentive awards are considered taxable income to participants in the year paid and will be subject to tax withholding. 
New Hires, Reduced Work Schedules, Promotions, and Transfers
New hires that meet the eligibility criteria and are hired prior to April 1 of the Program year receive a prorated award based on the number of full months worked during the Program year. New hires employed by the Bank on or after April 1 are not eligible to receive an award for the current Program year.
Participants that are promoted or change roles where the participant becomes eligible or ineligible for an award or experience a change in incentive opportunity will receive a prorated award based on their status and the effective date of the promotion or role change. Award amounts will be calculated using the participant’s base earnings and the incentive target for the applicable period. Base earnings refers to the base salary in effect on June 30 and excludes referral fees, commissions and any other previously-paid performance compensation.
Participants that have an approved leave of absence are eligible to receive a prorated award calculated using their time in active status as permitted by the Family Medical Leave Act or other applicable state and federal laws and regulations. 
Termination of Employment
To encourage employee retention, a participant must be an active employee of the Bank on the date the incentive award is paid to receive an award (please see exceptions for death, disability and retirement below). Participants who terminate employment during the Program year will not be eligible to receive an award. Participants who have given notice of resignation during the Program year and before payout are not eligible to receive an award.
Death, Disability or Retirement
If a participant ceases to be employed by the Bank due to disability, his/her cash incentive award for the Program year will be prorated to the date of termination. 
In the event of death, the Bank will pay to the participant’s estate the pro rata portion of the cash award that had been earned by the participant during his/her period of employment. 
Individuals who retire are eligible to receive a cash incentive payout if they are actively employed through March 31 of the performance period. 
Clawback
In the event that the Bank is required to prepare an accounting restatement due to the material noncompliance of the Bank with any financial reporting requirement under the securities laws, the Participants shall, unless otherwise determined in the sole discretion of the Committee, reimburse the Bank upon receipt of written notification for any excess incentive payment amounts paid under the Program calculation(s) which were based on financial results required to be restated. In calculating the excess amount, the Committee shall compare the calculation of the incentive payment based on the relevant results reflected in the restated financials compared to the same results reflected in the original financials that were required to be restated. Participants may write a check payable to the 

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Bank for amounts equal to the written notification. In its discretion, the Compensation Committee has the right to adjust compensation and/or modify a Participant’s future incentive payments as it deems necessary. 
Ethics Statement
The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards, will subject the employee to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by this Program to which the employee would otherwise be entitled will be revoked or if paid, be obligated to repay any incentive award earned during the award period in which the wrongful conduct occurred regardless of employment status.
Miscellaneous
Any participant awards shall not be subject to assignment, pledge or other disposition, nor shall such amounts be subject to garnishment, attachment, transfer by operation of law, or any legal process.
Participation in the Program does not confer rights to participation in other Bank programs, including annual or long-term incentive programs, non-qualified retirement or deferred compensation programs or other executive perquisite programs.
The Program will not be deemed to give any participant the right to be retained in the employ of the Bank, nor will the Program interfere with the right of the Bank to discharge any participant at any time for any reason.
In the absence of an authorized, written employment contract, the relationship between employees and the Bank is one of at-will employment. The Program does not alter the relationship.
This Program and the transactions and payments hereunder shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the state in which the participant is employed.
Each provision in this Program is severable, and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby.

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	Schedule A: 2020 Award Percentages and Performance Measures Weighting

	Participant
	 
	Title
	 
	Target %
	 
	Corporate 
Weighting
	 
	Unit/Function 
Weighting

	Dana Stonestreet
	 
	CEO
	 
	55%
	 
	80%
	 
	20%

	Hunter Westbrook
	 
	COO
	 
	40%
	 
	75%
	 
	25%

	Tony VunCannon
	 
	CFO
	 
	30%
	 
	75%
	 
	25%

	Marty Caywood
	 
	CIO
	 
	30%
	 
	75%
	 
	25%

	Keith Houghton
	 
	CCO
	 
	30%
	 
	75%
	 
	25%

	Parrish Little
	 
	CRO
	 
	30%
	 
	75%
	 
	25%

	Paula Labian
	 
	CHRO
	 
	30%
	 
	75%
	 
	25%

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	Schedule B: Bank Goals, Weightings and Definitions 

	Performance 
Measure
	 
	CEO
	 
	SOC

	Net Income
	 
	50%
	 
	45%

	 
	 
	 
	 
	 

	Efficiency Ratio
	 
	10%
	 
	10%

	 
	 
	 
	 
	 

	Total Loans (Excluding Purchased HELOCs)
	 
	10%
	 
	10%

	 
	 
	 
	 
	 

	Non-brokered Deposits
	 
	10%
	 
	10%

	 
	 
	 
	 
	 

	Functional Team
	 
	20%
	 
	25%

	 
	 
	 
	 
	 

	 
	 
	100%
	 
	100%

The Compensation Committee may reduce the amount of incentive payments at their discretion based on the level of nonperforming loans and OREO.

Note: Payouts for performance between Threshold and Target and Target and Stretch will be calculated using straight line interpolation.

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	Schedule C: Example Payout Calculation

	2020 POTENTIAL BASED ON TARGET
	Performance Goals

	Performance Measures
	Incentive
	 
	Threshold
	Target
	Stretch
	Actual
	 

	 
	at Target
	Weight
	50%
	100%
	150%
	Performance
	Payout

	 
	 
	 
	 
	 
	 
	 
	 

	Corporate
	 
	 
	 
	 
	 
	 
	 

	Net Income
	$
	33,750
	

	45%
	TBD
	TBD
	TBD
	Target
	$
	33,750
	

	Efficiency Ratio
	$
	7,500
	

	10%
	TBD
	TBD
	TBD
	Target
	$
	7,500
	

	Total Loans
	$
	7,500
	

	10%
	TBD
	TBD
	TBD
	Target
	$
	7,500
	

	Non-brokered Deposits
	$
	7,500
	

	10%
	TBD
	TBD
	TBD
	Target
	$
	7,500
	

	 
	 
	 
	 
	 
	 
	 
	 

	Corporate Goal Achievement
	$
	56,250
	

	75%
	 
	 
	 
	 
	$
	56,250
	

	 
	 
	 
	 
	 
	 
	 
	 

	Unit/Function
	 
	 
	 
	 
	 
	 
	 

	Goal 1
	$
	7,500
	

	10%
	 
	Goal 1
	 
	 
	$
	7,500
	

	Goal 2
	$
	7,500
	

	10%
	 
	Goal 2
	 
	 
	$
	7,500
	

	Goal 3
	$
	3,750
	

	5%
	 
	Goal 3
	 
	 
	$
	3,750
	

	 
	 
	 
	 
	 
	 
	 
	 

	Team/Individual Achievement
	$
	18,750
	

	25%
	 
	 
	 
	Target
	$
	18,750
	

	 
	 
	 
	 
	 
	 
	 
	 

	Grand Total
	$
	75,000
	

	100%
	 
	 
	 
	 
	$
	75,000
	

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EXHIBIT 10.1

CONSENT AND SECOND AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

THIS CONSENT AND SECOND AMENDMENT to Second Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into as of August 29, 2019, by and among SILICON VALLEY BANK, a California corporation (“Bank”), as collateral agent (in such capacity, “Collateral Agent”), Bank in its capacity as a Lender, and the other Lenders party to that certain Second Amended and Restated Loan and Security Agreement dated as of May 14, 2018 (as the same may from time to time be amended, modified, supplemented or restated, including by that certain Consent and First Amendment to Second Amended and Restated Loan and Security Agreement dated as of July 3, 2019, collectively, the “Loan Agreement”) (together with Bank, each a “Lender” and collectively, the “Lenders”), and CLEARSIDE BIOMEDICAL, INC., a Delaware corporation (“Borrower”).

Recitals

A.Lenders have extended credit to Borrower for the purposes permitted in the Loan Agreement.  

B.Borrower has informed Lenders that it desires to grant an exclusive option to enter into the Commercial License (as such term is defined in the Option and License Agreement) to Regenxbio Inc., a Delaware corporation (“Regenxbio”), to develop and commercialize certain products that are administered to patients using a Clearside Device (as such term is defined in the Option and License Agreement) on a worldwide basis, pursuant to the terms of that certain Option and License Agreement by and between Regenxbio and Borrower dated as of August 29, 2019 and attached hereto as Annex I (the “Option and License Agreement”).  In connection therewith, Regenxbio has agreed, among other things, to pay to Borrower an option exercise fee in the amount of Two Million Dollars ($2,000,000) plus various conditional payments and royalties.

C.Section 7.1 of the Loan Agreement provides that Borrower shall not convey, sell, lease, transfer, assign, or otherwise dispose of all or any part of its business or property without Lenders’ prior written consent.  Section 7.5 of the Loan Agreement provides that Borrower shall not create, incur allow or suffer any Lien on its property or agree with any Person not to encumber its Intellectual Property except to the extent permitted under Section 7.1 of the Loan Agreement or in the definition of “Permitted Liens” contained therein.

D.Borrower has requested that Lenders consent to Borrower’s entry into and performance of the Option and License Agreement and agree that entry into and performance under the Option and License Agreement will not violate sections 7.1 or 7.5 of the Loan Agreement.

E.Lenders have agreed to so consent to Borrower’s entry into the Option and License 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.Consent.  Subject to the terms of Section 9 below, Lenders hereby consent to Borrower’s entry into and performance of the Option and License Agreement attached as Annex I to this Amendment (without giving effect to any subsequent amendments or changes thereto). 

3.Amendments to Loan Agreement. 

3.1Section 6.8 (Protection of Intellectual Property Rights).  Section 6.8 of the Loan Agreement hereby is amended in its entirety and replaced with the following:

“6.8Protection and Registration of Intellectual Property Rights.

(a)(i) Use commercially reasonable efforts to protect, defend and maintain the validity and enforceability of its Intellectual Property; (ii) promptly advise Collateral Agent in writing of material infringements or any other event that could reasonably be expected to materially and adversely affect the value of its Intellectual Property with any material value; and (iii) not allow any Intellectual Property material to Borrower’s business to be abandoned, forfeited or dedicated to the public without each Lender’s written consent.  

(b)To the extent not already disclosed in writing to Collateral Agent, if Borrower (i) obtains any Patent, registered Trademark, registered Copyright, registered mask work, or any pending application for any of the foregoing, whether as owner, licensee or otherwise, or (ii) applies for any Patent or the registration of any Trademark, then Borrower shall immediately provide written notice thereof to Collateral Agent and shall execute such intellectual property security agreements and other documents and take such other actions as Collateral Agent may request in its good faith business judgment to perfect and maintain a first priority perfected security interest in favor of Collateral Agent in such property.  If Borrower decides to register any Copyrights or mask works in the United States Copyright Office, Borrower shall: (x) provide Collateral Agent with at least fifteen (15) days prior written notice of Borrower’s intent to register such Copyrights or mask works together with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); (y) execute an intellectual property security agreement and such other documents and take such other actions as Collateral Agent may request in its good faith business judgment to perfect and maintain a first priority perfected security interest in favor of Collateral Agent in the Copyrights or mask works intended to be registered with the United States Copyright Office; and (z) record such intellectual property security agreement with the United States Copyright Office contemporaneously with filing the Copyright or mask work application(s) with the United States Copyright Office.  Borrower shall promptly provide to Collateral Agent copies of all applications that it files for Patents or for the registration of Trademarks, Copyrights or mask works, together with evidence of the recording of the intellectual property security agreement required for Collateral Agent to perfect and maintain a first priority perfected security interest in such property.

(c)Provide written notice to Collateral Agent and each Lender within ten (10) days of entering or becoming bound by any Restricted License (other than over-the-counter software that is commercially available to the public).  Borrower shall take such commercially reasonable steps as Collateral Agent or any Lender requests to obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral” and for Collateral Agent to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any 

2

 

such Restricted License, whether now existing or entered into in the future, and (ii) Collateral Agent to have the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance with Collateral Agent’s rights and remedies under this Agreement and the other Loan Documents, provided that the failure to obtain such consent or waiver, after talking the steps set forth above, shall not constitute an Event of Default hereunder.”

3.2Section 14.1 (Definitions).  The following defined terms and their respective definitions hereby are added or amended and restated in their entirety, as appropriate, in Section 14.1 of the Loan Agreement to read in their entirety to read as follows: 

“Aura License” means that certain License Agreement by and between Aura Biosciences, Inc., a Delaware corporation (“Aura”) and Borrower dated as of July 3, 2019 as attached as Annex I to the First Amendment (without giving effect to any subsequent amendments or changes thereto), pursuant to which Borrower has granted Aura an exclusive license to develop and commercialize certain Licensed Products (as such term is defined therein) on a worldwide basis.

“First Amendment” means that certain Consent and First Amendment to Second Amended and Restated Loan and Security Agreement by and among Collateral Agent, Lenders, and Borrower dated as of July 3, 2019.

“Intellectual Property Security Agreement” is collectively (a) that certain Intellectual Property Security Agreement between Collateral Agent and Bank dated as of the Second Amendment Effective Date, as may be amended, modified or restated from time to time and (b) any other intellectual property security agreement(s) between Collateral Agent and Bank at any time thereafter in accordance with Section 6.8(b) hereof.

“Loan Documents” are, collectively, this Agreement, the Warrants, the Intellectual Property Security Agreement, the Perfection Certificate, each Compliance Certificate, each Disbursement Letter, each Loan Payment/Advance Request Form, each Guaranty, any subordination agreements, any note, or notes or guaranties executed by Borrower or any other Person, and any other present or future agreement entered into by Borrower, any Guarantor or any other Person for the benefit of the Lenders and Collateral Agent in connection with this Agreement; all as amended, restated, or otherwise modified. 

“Permitted License” is (a) any non-exclusive license of patent rights of Borrower or its Subsidiaries so long as all such Permitted Licenses are granted to third parties in the ordinary course of business, do not result in a legal transfer of title to the licensed property, and have been granted in exchange for fair consideration, (b) any exclusive license of patent rights of Borrower or its Subsidiaries so long as such Permitted Licenses do not result in a legal transfer of title to the licensed property, are exclusive solely as to discrete geographical areas outside of the United States, and have been granted in exchange for fair consideration, (c) the Aura License, and (d) the Regenxbio License. 

“Regenxbio License” means that certain Option and License Agreement by and between Regenxbio Inc., a Delaware corporation (“Regenxbio”) and Borrower dated as of August 29, 2019 and attached as Annex I to the Second Amendment (without giving effect to any subsequent amendments or changes thereto), pursuant to which Borrower has granted Regenxbio an exclusive option to enter into the Commercial License (as such term is defined in the Regenxbio License) to develop and commercialize certain products that 

3

 

are administered to patients using a Clearside Device (as such term is defined in the Regenxbio License) on a worldwide basis.

“Second Amendment” means that certain Consent and Second Amendment to Second Amended and Restated Loan and Security Agreement by and among Collateral Agent, Lenders, and Borrower dated as of the Second Amendment Effective Date.

“Second Amendment Effective Date” is August 29, 2019.

3.3Exhibit A (Collateral Description).  Exhibit A of the Loan Agreement hereby is replaced in its entirety by Exhibit A attached hereto.

4.Grant of Lien in Intellectual Property.  Borrower understands and agrees that the effect of the amendments set forth in Section 3 above serve to create a Lien in favor of Collateral Agent in Borrower’s Intellectual Property, and, without limiting in any respect Borrower’s grant of a Lien and security interest to Collateral Agent for the ratable benefit of the Lenders in the Collateral pursuant to Section 4.1 of the Loan Agreement, to secure the payment and performance in full of all of the Obligations, Borrower hereby grants Collateral Agent, for the ratable benefit of the Lenders, a continuing security interest in, and pledges to Collateral Agent, for the ratable benefit of the Lenders, all of its Intellectual Property, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products thereof.  Borrower hereby authorizes Collateral Agent to (a) file a UCC-3 financing statement amendment reflecting the change in Collateral and (b) record the Intellectual Property Security Agreement with the United States Patent and Trademark Office.

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

5.1Immediately 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;

5.2Borrower 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;

5.3The organizational documents of Borrower delivered to Lenders on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect.

6.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.

7.Ratification of Perfection Certificate.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated on or prior to the Effective Date and acknowledges, confirms and agrees that the disclosures and information Borrower provided to Lenders in such Perfection Certificate have not changed, as of the date hereof.

8.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.

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9.Effectiveness.  This Amendment shall be deemed effective upon (a) the due execution and delivery to Lenders of (i) this Amendment by each party hereto, (ii) an Intellectual Property Security Agreement by each party thereto, and (iii) a fully-executed copy the Option and License Agreement together with all other documents entered into in connection therewith, and (b) Borrower’s payment to Lenders of all Lenders’ Expenses due and owing as of the date hereof, which may be debited from any of Borrower’s accounts at Bank.

10.Governing Law.  This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.

]Balance of Page Intentionally Left Blank]

 

5

 

In Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

 

			
	
BORROWER:
	
 
	
 

	
 
	
 
	
 

	
CLEARSIDE BIOMEDICAL, INC.
	
 
	
 

	
 
	
 
	
 

	
By /s/ George Lasezkay
	
 
	
 

	
Name: George Lasezkay
	
 
	
 

	
Title: CEO
	
 
	
 

	
 
	
 
	
 

	
 

COLLATERAL AGENT AND LENDER:
	
 
	
 

	
 
	
 
	
 

	
SILICON VALLEY BANK
	
 
	
 

	
 
	
 
	
 

	
By /s/ Scott McCarty
	
 
	
 

	
Name: Scott McCarty
	
 
	
 

	
Title: Director
	
 
	
 

	
 
	
 
	
 

	
 

LENDERS:
	
 
	
 

	
 
	
 
	
 

	
ELM 2016-1 TRUST
	
 
	
 

	
 
	
 
	
 

	
By: MidCap Financial Services Capital Management, LLC, as Servicer
	
 
	
 

	
 
	
 
	
 

	
By /s/ John O’Dea
	
 
	
 

	
Name:  John O’Dea
	
 
	
 

	
Title:    Authorized Signatory
	
 
	
 

	
 
	
 
	
 

	
ELM 2018-2 TRUST, as Assignee
	
 
	
 

	
 
	
 
	
 

	
By: MidCap Financial Services Capital Management, LLC, as Servicer
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
By /s/ John O’Dea
	
 
	
 

	
Name:  John O’Dea
	
 
	
 

	
Title:    Authorized Signatory
	
 
	
 

 

[Signature Page to Consent and Second Amendment to Second Amended and Restated Loan and Security Agreement]

 

 

EXHIBIT A

COLLATERAL DESCRIPTION

The Collateral consists of all of Borrower’s right, title and interest in and to the following personal property:

All goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, License Agreements, franchise agreements, General Intangibles, commercial tort claims, documents, instruments (including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and

all Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or all of the foregoing.

 

 

 

 

ANNEX 1

 

Option and License Agreement

 

[See attached]

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