Document:

delsitechlicenseagreemen

EXECUTION VERSION  CONFIDENTIAL  Certain identified information has been excluded from the exhibit because it is both (i) not  material and (ii) is the type of information that the registrant treats as private or confidential.  Double asterisks denote omissions.        LICENSE AGREEMENT  This License Agreement (hereinafter “Agreement”), effective as of June 30, 2022 (the  “Effective Date”), is made by and between IVERIC bio, Inc., a Delaware corporation with  corporate offices at 8 Sylvan Way, Parsippany, NJ 07054 USA (“IVERIC”) and DelSiTech Ltd,  a corporation duly organized and existing under the laws of Finland with corporate offices at  Itäinen Pitkäkatu 4C, 20520 Turku, Finland (“DelSiTech”) (each, a “Party” and collectively, the  “Parties”).  WHEREAS, IVERIC is a biopharmaceutical company specializing in the development of  novel therapeutics to treat diseases of the eye;  WHEREAS, DelSiTech owns certain intellectual property rights, proprietary materials,  know-how, and information relating to silica sol gel technology for encapsulation, embedding and  delivery of biologically active agents (as further defined below, the “DelSiTech Technology”);  and  WHEREAS, pursuant to the Service Agreement between the Parties dated October 1, 2021  (the “SA”), DelSiTech has created a version of IVERIC’s proprietary drug substance avacincaptad  pegol (as further defined below, the “IVERIC Product”) formulated using the DelSiTech  Technology, and, the Parties are entering into this Agreement to enable the Parties to perform  further activities with respect to development of formulations of the IVERIC Product using the  DelSiTech Technology and to provide IVERIC a license to further develop and commercialize  IVERIC products that use the DelSiTech Technology.  NOW, THEREFORE, in consideration of the mutual covenants and agreements provided  herein below and other consideration, the receipt and sufficiency of which are hereby  acknowledged, the Parties hereby agree as follows:  ARTICLE 1  Definitions  Unless the context otherwise requires, the terms in this Agreement, when used with initial capital  letters, will have the meanings set forth below or at their first use in this Agreement:  1.1 “Accounting Standards” means in the case of IVERIC, United States Generally  Accepted Accounting Principles (GAAP), and in the case of DelSiTech, IFRS (International  Financial Reporting Standards) starting in year [**], in each case as generally and consistently  applied throughout the applicable Party’s organization. Each Party will promptly notify the other  in the event that it changes the Accounting Standards pursuant to which its records are maintained,  it being understood that each Party may only use internationally recognized accounting principles  (e.g., IFRS, US GAAP, etc.).  

 

EXECUTION VERSION  CONFIDENTIAL      2      1.2 “Affiliate” means, with respect to a Party, any person, corporation, firm, joint  venture or other entity which, directly or indirectly, through one or more intermediaries, controls,  is controlled by or is under common control with such Party. As used in this definition, “control”  means the possession of the majority of the ownership, or the power to direct or cause the direction  of the management and policies, of an entity, whether through the ownership of the outstanding  voting securities thereof or by contract or otherwise.  1.3 “Annual Net Sales” means, with respect to a particular Licensed Product and  calendar year, all Net Sales of such Licensed Product in the Territory during such calendar year.  1.4 “Bankruptcy Laws” has the meaning set forth in Section 2.8.  1.5 “[**] Product” means any product that targets the [**].  1.6 “Change of Control” means, with respect to a Party, (a) the sale of all or  substantially all of such Party’s tangible and intangible assets or business relating to this  Agreement; or (b) the merger, consolidation, sale of substantially all of such Party’s equity  interests or similar transaction or series of transactions, as a result of which such Party’s  shareholders before such transaction or series of transactions own less than fifty percent (50%) of  the total number of voting securities of the surviving entity immediately after such transaction or  series of transactions; provided, however, that with respect to DelSiTech, it does not include: (i)  an underwritten public offering of DelSiTech’s common stock pursuant to a Registration  Statement on Form S-1 under the Securities Act of 1933, as amended, or any other foreign  equivalent thereof (including any initial public offering at any stock exchange, such as First North  or Nasdaq in Helsinki, Finland); or (ii) any sale of shares of capital stock of DelSiTech, in a single  transaction or series of related transactions, principally for bona fide equity financing purposes in  which DelSiTech issues new securities solely to institutional investors for cash or the cancellation  or conversion of indebtedness of DelSiTech or a combination thereof for the purpose of financing  the operations and business of DelSiTech.   1.7 “Claim” has the meaning set forth in Section 11.1.  1.8 “Clinical Data” means any and all data (together with all clinical trial reports and  the results of analyses thereof) derived or generated from any Clinical Trial involving a Licensed  Product conducted by or on behalf of IVERIC or from the testing of subjects or the analysis of  samples used in any such Clinical Trial.   1.9 “Clinical Supply Agreement” has the meaning set forth in Section 5.2.  1.10 “Clinical Trial” means any study of a potential Licensed Product in human  subjects.  1.11 “CMO” means a Third Party contract manufacturer.  1.12 “Commercialization” means activities directed to marketing, promoting,  distributing or selling products, including all activities directed to obtaining Pricing Approval in  

 

EXECUTION VERSION  CONFIDENTIAL      3      the Territory, pre-approval marketing activities, product launch, and interactions with Regulatory  Authorities regarding any of the foregoing; and excluding Development, Manufacturing and  supply of product. “Commercialize” and “Commercializing” will have their correlative  meanings.  1.13 “Commercially Reasonable Efforts” means, with respect to the efforts to be  expended by IVERIC with respect to any objective relating to Development, seeking Regulatory  Approval for and Commercialization of Licensed Products, such efforts as would be normally  expended by an pharmaceutical or biopharmaceutical company of similar size and resources to  accomplish a similar objective with respect to an ophthalmic product at a similar stage in its  development or product life and of similar market potential, taking into account all factors that are  relevant to the Development, manufacture, or Commercialization of the Licensed Product,  including the stage of development, cost to develop and time to complete Development of the  Licensed Product, the safety and efficacy of the Licensed Product (including in comparison to  other products available or in development), the likelihood of Regulatory Approval (including  Pricing Approval) of the Licensed Product, the nature and extent of expected and actual market  exclusivity of the Licensed Product (including Patent coverage and regulatory exclusivity), the  expected and actual competitiveness and availability of similar alternative products in the  marketplace, profit potential of the Licensed Product (taking into account payments under this  Agreement and any other financial commitments with respect to such Licensed Product), and the  nature of the ophthalmic pharmaceutical or biopharmaceutical industry; it being agreed that the  level of effort will change over time, including to reflect changes in the status of the Licensed  Product and the country (or markets) involved.  1.14 “Confidential Information” any Know-How or other confidential and proprietary  information and materials, patentable or otherwise, in any form (written, oral, photographic,  electronic, magnetic, or otherwise) that is disclosed by or on behalf of the Disclosing Party or  otherwise learned by the Receiving Party in connection with this Agreement that is confidential or  proprietary to the Disclosing Party, including trade secrets, Know-How, inventions or discoveries,  proprietary information, formulae, processes, techniques and information (including any Patent  filings prior to publication thereof) relating to the Disclosing Party’s past, present or future  Development, Manufacturing, Commercialization or other exploitation activities relating to  products or technology of the Disclosing Party or the pricing thereof. Notwithstanding the  foregoing, “Confidential Information” excludes information to the extent that it can be  established by the Receiving Party that such information: (a) was in the lawful knowledge or  possession of the Receiving Party prior to the time it was first disclosed to or learned by the  Receiving Party by the Disclosing Party, or was otherwise developed independently by the  Receiving Party without reference to any of the Disclosing Party’s Confidential Information; (b)  was generally available to the public or otherwise part of the public domain at the time it was first  disclosed to or learned by the Receiving Party; (c) became generally available to the public or  otherwise part of the public domain after the time it is first disclosed to or learned by the Receiving  Party and other than through any act or omission of the Receiving Party or its Representatives in  breach of this Agreement or the Prior CDA; (d) was disclosed to the Receiving Party, other than  under an obligation of confidentiality, by a Third Party who had no obligation to the Disclosing  Party not to disclose such information to others. Any information disclosed by a Party to the other  

 

EXECUTION VERSION  CONFIDENTIAL      4      Party prior to the Effective Date pursuant to the Prior CDA, that was considered Confidential  Information (as defined in the Prior CDA) will be Confidential Information of such Disclosing  Party hereunder, subject to the provisions of subsections (a) through (d) above. The existence and  terms of this Agreement will be considered the Confidential Information of both Parties.  1.15 “Control” means with respect to any Know-How, Patent, Invention or other  tangible or intangible intellectual property right, the possession (whether by ownership or license,  other than licenses granted pursuant to this Agreement) by a Party or its Affiliates of the ability to  grant to the other Party access to, ownership of, or a license or sublicense under, such Know-How,  Patent, Invention, or other intellectual property, in each case as provided under this Agreement,  without violating the terms of any agreement or other arrangement with any Third Party.   1.16 “Cover” means, with respect to a Patent and a given product, that a Valid Claim of  such Patent would (absent a license thereunder or ownership thereof) be infringed by the making,  using, selling, offering for sale, importation or other exploitation of such product.   1.17 “Cure Period” has the meaning set forth in Section 9.2(b).  1.18 “Created” means: (a) with respect to Patents, invented as determined in accordance  with United States patent law; or (b) with respect to Know-How, conceived, generated or  developed.  1.19 “Declaratory Judgment Action” has the meaning set forth in Section 7.4.  1.20 “DelSiTech Background IP” means all Patents and Know-How pertaining to the  DelSiTech Technology that: (a) are Controlled by DelSiTech as of the Effective Date; or (b)  become Controlled by DelSiTech after the Effective Date independent of the activities undertaken  under this Agreement.   1.21 “DelSiTech Improvement IP” means all Patents and Know-How pertaining to the  DelSiTech Background IP that are Created by or on behalf of one or both Parties (or any of their  respective Affiliates) during the Term in the course of performance of any Work Plan. DelSiTech  Improvement IP excludes IVERIC Improvement IP.  1.22 “DelSiTech Indemnitee” has the meaning set forth in Section 11.2.  1.23 “DelSiTech IP” means DelSiTech Background IP and DelSiTech Improvement IP.  The Patents comprising DelSiTech Background IP as of the Effective Date are listed in Exhibit  A1, which will be updated at least [**] from the Effective Date.  1.24 “DelSiTech Program Activities” means the activities to be performed by  DelSiTech pursuant to one or more Work Plans.   1.25 “DelSiTech Technology” means DelSiTech’s proprietary silica sol-gel or silica  matrix technology for encapsulation, embedding, delivery or controlled-release of biologically  active agents  

 

EXECUTION VERSION  CONFIDENTIAL      5      1.26 “Development” means any and all processes and activities related to the  development of products for the treatment of human diseases, disorders and conditions and  obtaining and maintaining Regulatory Approval for such products, including pre- and post- marketing approval clinical trials and activities relating to development or preparation of such  product for Commercialization. Development includes activities related to pre-clinical testing, pre- clinical toxicology, pharmacokinetics, pharmacodynamics, stability testing, toxicology,  formulation, Manufacturing process scale up (including registration batches/process validation,  engineering studies qualification and validation, process validation, characterization and stability,  scale and technology transfer to CMOs), qualification and validation activities, quality  assurance/quality control development. “Develop” and “Developing” will have their correlative  meanings.  1.27 “Disclosing Party” has the meaning set forth in Section 8.1.  1.28 “Dispute” has the meaning set forth in Section 12.1.  1.29 “Enforcement Actions” has the meaning set forth in Section 7.4.  1.30 “Euro” or “€” means the legal currency of the European Union.  1.31 “European Union” or “EU” means all countries that are officially recognized as  member states of the European Union at any particular time.  1.32 “Exclusivity Covenant” has the meaning set forth in Section 2.4.  1.33 “FDA” means the United States Food and Drug Administration, or any successor  entity thereto having substantially the same functions.  1.34 “FDC Act” means the United States Federal Food, Drug, and Cosmetic Act,  enacted in 1938 as Public Law 75-717, as such may have been amended, and which is contained  in Title 21 of the U.S. Code, Section 301 et seq., as amended, and the regulations promulgated  thereunder from time to time.  1.35 “Field” means treatment, prevention, mitigation, palliation and cure of diseases of  the eye in humans.  1.36 “First Commercial Sale” means, with respect to a Licensed Product in a country,  the first commercial sale of such Licensed Product in such country by IVERIC, its Affiliates or  Sublicensees after all required Regulatory Approvals (including any Pricing Approval required by  applicable Law in such country) for such Licensed Product in such country have been received;  provided, however, that the following will not constitute a First Commercial Sale: (a) any sale to  an Affiliate or Sublicensee; or (b) any use of such Licensed Product in Clinical Trials or non- clinical Development activities with respect to such Licensed Product by or on behalf of IVERIC  (or its Affiliates or Sublicensees), or disposal or transfer of such Licensed Product for a bona fide  charitable purpose, compassionate use or samples, in each case for which IVERIC does not receive  any financial or in-kind compensation.  

 

EXECUTION VERSION  CONFIDENTIAL      6      1.37 “Force Majeure” has the meaning set forth in Section 13.5.  1.38 “Government Authority” means any international, multi-national, national,  federal, state, local, municipal or other government authority of any nature (including any  governmental division, subdivision, department, agency, bureau, branch, office, commission,  council, court or other tribunal).  1.39 “IND” means an Investigational New Drug application as defined in the FDC Act,  and applicable regulations promulgated thereunder by the FDA, or an equivalent application  submitted to an equivalent Regulatory Authority in any other country or jurisdiction in the  Territory, the filing of which is necessary to initiate Clinical Trials in such country or jurisdiction,  including a clinical trial application.  1.40 “Indemnitee” has the meaning set forth in Section 11.3.  1.41 “Initial Exclusivity Period” has the meaning set forth in Section 2.4.  1.42 “Invention” means any and all patentable inventions as determined in accordance  with United States patent law.  1.43 “IPO” means DelSiTech’s first underwritten public offering of its common stock  under the Securities Act of 1933, as amended, or any foreign equivalent thereof (including any  initial public offering at any stock exchange, such as First North or Nasdaq in Helsinki, Finland),  and the rules and regulations promulgated thereunder.  1.44 “IVERIC Background IP” means all Patents and Know-How pertaining to the  Licensed Product that: (a) are Controlled by IVERIC as of the Effective Date; or (b) becomes  Controlled by IVERIC after the Effective Date independent of the activities undertaken under this  Agreement.   1.45 “IVERIC Improvement IP” means all: (a) Know-How pertaining to the  combination of the IVERIC Product and DelSiTech Technology and that is (i) Created by or on  behalf of one or both Parties (or any of their respective Affiliates) during the Term in the course  of performance of any Work Plan (or during the SA pursuant to services performed thereunder),  or (ii) developed by or on behalf of IVERIC or its Affiliates in the exercise of any license granted  hereunder; and (b) all Patents Covering the Know-How described in subsection (a). For the  avoidance of doubt, the Provisional Patent Application, and all Patents Covering the subject matter  contemplated by the Provisional Patent Application, constitute IVERIC Improvement IP.  1.46 “IVERIC Improvement Patent” means any Patent within the IVERIC  Improvement IP.  1.47 “IVERIC Indemnitee” has the meaning set forth in Section Article 11.  1.48 “IVERIC IP” means IVERIC Background IP and IVERIC Improvement IP. The  Patents comprising IVERIC Background IP as of the Effective Date are listed in Exhibit A2, which  

 

EXECUTION VERSION  CONFIDENTIAL      7      will be updated as reasonably requested by DelSiTech but no more than [**] from the Effective  Date.  1.49 “IVERIC Product” means avacincaptad pegol (whether PEGylated or  unPEGylated), in any form, dosage, strength or formulation.   1.50 “Know-How” means any tangible and intangible information, data, results  (including pharmacological, research and development data, reports and batch records), and  materials, discoveries, improvements, compositions of matter, cell lines, assays, sequences,  processes, methods, knowledge, protocols, formulas, utility, formulations, inventions (whether  patentable or not), strategy, know-how and trade secrets, and all other scientific, pre-clinical,  clinical, regulatory, manufacturing, marketing, financial and commercial information or data, in  each case that either Party, or a Third Party, as applicable, has treated and maintained as  confidential or proprietary information.  1.51 “Law” means the applicable laws, treaties, statutes, ordinances, rules and  regulations, including any rules, regulations, guidance, guidelines or other requirements of any  Governmental Authorities (including any Regulatory Authorities) that may be in effect from time  to time in any country or jurisdiction of the Territory.  1.52 “License Conversion Notice” has the meaning set forth in Section 9.4.  1.53 “Licensed Know-How” means all Know-How Controlled by DelSiTech as of the  Effective Date or any time during the Term that is necessary or reasonably useful for the  Development, Manufacture or Commercialization of Licensed Products.  1.54 “Licensed Patents” means all Patents Controlled by DelSiTech as of the Effective  Date or any time during the Term that: (a) Cover the Licensed Products (including any method of  Manufacturing or method of using the Licensed Products); or (b) are otherwise necessary for the  Development, Manufacture or Commercialization of Licensed Products.  1.55 “Licensed Product” means any product: (a) comprising the IVERIC Product that  is formulated for intravitreal delivery using the DelSiTech Technology; and (b) that is Covered by  a Valid Claim of the Licensed Patents or IVERIC Improvement Patents.  1.56 “Licensed Technology” means, collectively, the Licensed Know-How and  Licensed Patents.   1.57 “Losses” has the meaning set forth in Section 11.1.  1.58 “Major European Country” means France, Germany, Italy, Spain or the United  Kingdom.  1.59 “Manufacture” means activities directed to the manufacture, receipt, incoming  inspections, storage and handling of raw materials and the manufacture, processing, formulation,  packaging, labeling, warehousing, quality control testing (including in-process release and  

 

EXECUTION VERSION  CONFIDENTIAL      8      stability testing), supplying, shipping and release of any product, as the case may be and to the  extent applicable, including manufacturing process development, scale-up and validation.  “Manufacturing” has the correlative meaning.  1.60 “Manufacturing Committee” has the meaning set forth in Section 5.4(a).  1.61 “NDA” means a New Drug Application, as defined in the FDC Act, as amended,  and applicable regulations promulgated thereunder by the FDA, with respect to a Licensed  Product.  1.62 “Necessary Third Party IP” has the meaning set forth in Section 2.5(a).  1.63 “Net Sales” means the gross revenues recorded by IVERIC or any of its Affiliates  or Sublicensees (each of the foregoing Persons, excluding distributors and wholesalers, a “Selling  Party”) for any Licensed Product sold to Third Parties as determined in accordance with IVERIC’s  Accounting Standards as consistently applied, less the following deductions from such gross  revenues, in each case solely to the extent attributable to such Licensed Product and to the extent  actually incurred or reasonably accrued and to the extent not already deducted in the amount  invoiced booked on an accrual basis by IVERIC and its Affiliates under its Accounting Standards:   (a) normal, customary trade discounts (including volume discounts), credits,  chargebacks, reductions and rebates and chargebacks actually allowed and taken;   (b) allowances and adjustments for rejections, recalls, defects, outdated  products or returns (in each event whether voluntary or required);   (c) freight, shipping, insurance, sales, use, excise, value-added, consumption  and similar tariffs, taxes or duties imposed on such sale, if prepaid by the Selling Party and  included on the Selling Party’s invoice;  (d) credits actually given or allowances actually made for wastage replacement,  Medicare/Medicaid or other governmental rebates, indigent patient, compassionate use and similar  programs to provide Licensed Product on at-cost (or lower) basis, to the extent actually deducted  from the gross amount invoiced and either not required to be paid by or refunded to the customer  or other payor;   (e) compensation paid to Third Party distributors and wholesalers for  maintaining agreed inventory levels and providing information;   (f) uncollectible amounts included in Net Sales on previously sold Licensed  Products (provided, however, that if any such amounts are collected in the future, they will  constitute Net Sales when collected); and   (g) other reductions or specifically identifiable amounts deducted for reasons  similar to those listed above in accordance with IVERIC’s Accounting Standards.  

 

EXECUTION VERSION  CONFIDENTIAL      9      Notwithstanding the foregoing, Licensed Products transferred between Selling Parties for purposes  of resale will not count toward Net Sales unless the recipient is an end-user of such Licensed  Product, provided that resale by such recipient to a Third Party end-user will give rise to Net Sales.  In the event that a Licensed Product is “bundled” for sale together with one or more other products  in a country in connection with a pharmacy incentive program, hospital performance incentive  program chargeback, disease management program or similar program for discounts on such  products, the Selling Party will allocate such bundled pricing to the net sales of such products,  including the Net Sales of such Licensed Product, using a methodology that is consistent with that  used in its other comparable product bundling programs, if any.  1.64 “New Securities” means, collectively, equity securities of DelSiTech, whether or  not currently authorized, as well as rights, options, or warrants to purchase such equity securities,  or securities of any type whatsoever that are, or may become, convertible or exchangeable into or  exercisable for such equity securities.  1.65 “Offer Notice” has the meaning set forth in Section 6.2.  1.66 “Patent” means (a) any patent, re-examination, reissue, renewal, extension,  supplementary protection certificate and term restoration, any confirmation patent or registration  patent or patent of addition based on any such patent, (b) any pending application for patents,  including provisional, converted provisional, continuations, continuations-in-part, divisional and  substitute applications, and inventors’ certificates, (c) all PCT applications or foreign counterparts  of any of the foregoing, and (d) all applications claiming priority to any of the foregoing.  1.67 “Person” means any individual, incorporated or unincorporated organization or  association, Government Authority, or other entity.  1.68 “Phase I Clinical Trial” means a human clinical trial that would satisfy the  requirements of 21 C.F.R. 312.21(a), or a similar clinical study prescribed by the relevant  Regulatory Authorities or applicable Law in a country other than the United States.  1.69 “Phase II Clinical Trial” means a human clinical trial that would satisfy the  requirements of 21 C.F.R. 312.21(b), or a similar clinical study prescribed by the relevant  Regulatory Authorities or applicable Law in a country other than the United States.   1.70 “Phase III Clinical Trial” means a human clinical trial that would satisfy the  requirements of 21 C.F.R. 312.21(c), or a similar clinical study prescribed by the relevant  Regulatory Authorities or applicable Law in a country other than the United States.  1.71 “Pricing Approval” means, with respect to a country or regulatory jurisdiction in  the Territory, such approval, agreement, determination or governmental decision establishing  prices for the Licensed Products that can be charged to consumers, or the amount to be reimbursed  by Governmental Authorities or private health plans, in such countries or regulatory jurisdictions  where the Governmental Authorities or Regulatory Authorities are required by applicable law to  approve or determine pricing of pharmaceutical products for reimbursement or otherwise.  

 

EXECUTION VERSION  CONFIDENTIAL      10      1.72 “Prior CDA” means the Mutual Confidential Disclosure Agreement between the  Parties dated [**].   1.73 “Private Placement” means any financing round before IPO where DelSiTech is  issuing New Securities to be subscribed for via non-public, private offering.  1.74 “Prosecution and Maintenance” means, with respect to a Patent, the preparing,  filing, prosecuting and maintenance of such Patent, as well as re-examinations, reissues, requests  for Patent term extensions and the like (including supplementary protection certificates and other  ex-US (i.e. any jurisdiction in the Territory outside the United States) equivalents) with respect to  such Patent, together with the conduct of interferences, derivation proceedings, supplemental  examinations, the defense of oppositions, inter-partes review, post-grant review and other similar  post-grant proceedings with respect to the particular Patent; and “Prosecute and Maintain” has  the correlative meaning.  1.75 “Provisional Patent Application” means the provisional patent application jointly  prepared by the Parties titled “sustained release silica hydrogel composites for treating  ophthalmological conditions and methods of using same”.  1.76 “Quality Agreement” has the meaning set forth in Section 5.2.  1.77 “Receiving Party” has the meaning set forth in Section 8.1.  1.78 “Redacted Version” has the meaning set forth in Section 8.4(b).  1.79 “Registration Application” means any filing(s) made with the Regulatory  Authority in any country or jurisdiction in the Territory to obtain Regulatory Approval for the  Commercialization of a product in such country or jurisdiction, including an NDA in the United  States.  1.80 “Regulatory Approval” means, with respect to any country in the Territory, the  registrations, authorizations and approvals of the applicable Regulatory Authority that are required  for Commercialization of pharmaceutical products in such country (but excluding any Pricing  Approvals).   1.81 “Regulatory Authority” means, in a particular country or jurisdiction in the  Territory, any applicable Governmental Authority involved in granting approval (a) to initiate or  conduct clinical testing in humans, (b) for issuing the authorizations, approvals, licenses, permits,  consents, registrations and filings necessary for the commercialization of a product in a country in  the Territory including marketing authorizations and manufacturing licenses, or (c) to the extent  required in such country or jurisdiction, for Pricing Approval for a product in such country or  jurisdiction.  1.82 “Representatives” means, with respect to a Person, such Person’s officers,  directors, employees, consultants, agents or other representatives.  

 

EXECUTION VERSION  CONFIDENTIAL      11      1.83 “Residual Knowledge” means knowledge, techniques, experience and Know-How  that: (a) are, or are based on any Confidential Information Controlled by the Disclosing Party; and  (b) are retained in the unaided memory of any authorized Representative of the Receiving Party  after having access to such Confidential Information. An individual’s memory will be considered  to be unaided if the individual has not intentionally memorized the Confidential Information for  the purpose of retaining and subsequently using or disclosing it. In no event, however, will  Residual Knowledge include any knowledge, techniques, experience and Know-How to the extent  (at any time, for such time) within the scope of any issued, valid, and enforceable patent claim  Controlled by the Disclosing Party.   1.84 “Royalty Term” means, as to a Licensed Product and a country, the period  commencing on the First Commercial Sale of such Licensed Product in such country and ending  upon the later of: (a) expiration of the last-to-expire Licensed Patent or IVERIC Improvement  Patent that Covers the Licensed Product in such country; and (b) expiration of all regulatory  exclusivity for the Licensed Product in such country.  1.85 “Selling Party” and/or “Selling Parties” has the meaning set forth in Section 1.63.  1.86 “Sublicensee” means any Third Party to which IVERIC grants a sublicense in  accordance with Section 2.3.   1.87 “Supply Costs” has the meaning set forth in Section 5.1.  1.88 “Technology Transfer” has the meaning set forth in Section 5.3.  1.89 “Term” has the meaning set forth in Section 9.1.  1.90 “Territory” means worldwide.  1.91 “Third Party” means any Person other than DelSiTech, IVERIC or any Affiliate  of either Party.  1.92 “Third Party Challenge” has the meaning set forth in Section 7.4.  1.93 “Third Party In-License” has the meaning set forth in Section 2.5(b).  1.94 “United States” or “U.S.” means The United States of America, including its  possessions and territories.   1.95 “Valid Claim” means: (a) a claim of an issued and unexpired Patent where such  claim has not (i) lapsed or been disclaimed, cancelled, withdrawn or abandoned, (ii) been dedicated  to the public, (iii) been declared invalid, unenforceable, unpatentable or revoked by a decision of  a court, government agency or other authority of competent jurisdiction from which no appeal can  be or has been taken, or (iv) been admitted to be invalid or unenforceable through reexamination,  reissue or otherwise; or (b) a claim of a pending Patent application that has not been cancelled,  withdrawn, abandoned or finally rejected by an administrative agency action from which no appeal  

 

EXECUTION VERSION  CONFIDENTIAL      12      can be taken, provided that any claim in any Patent application pending for more than [**] from  the earliest date on which such claim claims priority will not be considered a Valid Claim for  purposes of this Agreement from and after such [**] date.  1.96 “VAT” has the meaning set forth in Section 6.10(c).  1.97 “Work Plan” means a written plan with respect to any Licensed Product pursuant  to which DelSiTech performs certain Development activities (including formulation) relating to  any Licensed Product as mutually agreed between the Parties. Each Work Plan will include the  budget, scope, deliverables and timelines for the DelSiTech Program Activities.  ARTICLE 2  Licenses  2.1 Grant to DelSiTech. Subject to the terms and conditions of this Agreement, IVERIC  hereby grants DelSiTech a royalty-free, non-exclusive, nontransferable (except as set forth in  Section 13.3), non-sublicensable (except as set forth in this Section 2.1 below), right and license,  under the IVERIC Background IP and IVERIC Improvement IP, to (a) perform the activities under  the Work Plans; and (b) Manufacture or have Manufactured the Licensed Products for supply to  IVERIC pursuant to Article 5. DelSiTech will not have any rights to grant any sublicenses except:  (x) to a CMO pursuant to Article 5; and (y) to such other subcontractors as DelSiTech engages  under this Agreement with IVERIC’s prior written approval, but solely to the extent such  subcontractor(s) require a sublicense in order to perform the approved subcontracted activities.  2.2 Grants to IVERIC. Subject to the terms and conditions of this Agreement,  DelSiTech hereby grants to IVERIC and its Affiliates an exclusive, nontransferable (except as set  forth in Section 13.3), sublicensable (as set forth in Section 2.3) right and license, under the  Licensed Technology, to use, Develop, have Developed, Manufacture and have Manufactured (to  the extent permitted under Article 5), Commercialize and have Commercialized, import, export  and otherwise exploit Licensed Products in the Field in the Territory. For purposes of the license  granted to IVERIC and its Affiliates pursuant to this Section 2.2, exclusivity means that, within  the scope of rights granted under Section 2.2, IVERIC is the exclusive licensee under the Licensed  Technology with respect to the exploitation of [**] Products in the Field in the Territory.  2.3 Sublicenses. IVERIC may grant sublicenses under the rights granted to it in Section  2.2; provided, however, that (a) each such sublicense is consistent with the terms and conditions  of this Agreement, including provisions that provide for intellectual property ownership, records  and audit rights, indemnification and confidentiality consistent with this Agreement, (b) IVERIC  will notify DelSiTech of any such sublicense agreement entered into with a Third Party within  [**] after it becomes effective, and (c) IVERIC will remain liable for any breach of any provisions  of this Agreement caused by any Sublicensee.  2.4 Exclusivity Covenant. During the Term, in furtherance of DelSiTech’s obligations  resulting from the grant of an exclusive license under Section 2.2, DelSiTech covenants that it and  its Affiliates will not: (a) work independently of this Agreement or with any Third Party to  

 

EXECUTION VERSION  CONFIDENTIAL      13      Manufacture, Develop or Commercialize a [**] Product in the Field in the Territory; or (b) grant  a license or a covenant not to assert, under any Patents or Know-How Controlled by DelSiTech,  to any Third Party to Develop or Commercialize a [**] Product in Field in the Territory except in  connection with DelSiTech’s performance of its obligations under this Agreement. During the  Term, and for a period of [**] thereafter (the “Initial Exclusivity Period”), DelSiTech covenants  that it and its Affiliates will not work independently of this Agreement or with any Third Party to  Manufacture, Develop or Commercialize a pharmaceutical product containing the IVERIC  Product (the “Exclusivity Covenant”); provided that IVERIC may elect to extend the term of the  Exclusivity Covenant for additional [**] periods (each period, a “Renewal Period”) from the  expiration of the Initial Exclusivity Period or then current Renewal Period, as applicable, by  payment to DelSiTech of a [**] Dollar ($[**]) fee per extension prior to the expiration of the Initial  Exclusivity Period or then current Renewal Period, as applicable.  2.5 Third Party Intellectual Property.   (a) If, after the Effective Date, either Party reasonably believes that any Patents  or Know-How Controlled by a Third Party are, or are reasonably likely to become, necessary to  have freedom to operate solely for the use of any DelSiTech Technology for the Development,  Manufacture or Commercialization of any Licensed Product (specifically excluding any Patents  or Know-How that solely Covers the IVERIC Product component of a Licensed Product,  “Necessary Third Party IP”), then such Party will promptly notify the other Party of such belief  and the Parties will discuss in good faith whether a license to such Necessary Third Party IP is  necessary or advisable.  (b) DelSiTech will have the first right to (but will not be required to) enter into  a license agreement for such Necessary Third Party IP (any such license agreement, a “Third  Party In-License”) for a period of [**] after the notice described in subsection (a) above.   (c) DelSiTech must inform IVERIC of is determination to seek to enter into a  Third Party In-License within [**] after the notice described in subsection (a) above, and  DelSiTech will then have another [**] from notice to IVERIC pursuant to this Section 2.5(c) to  enter into such Third Party In-License. If DelSiTech does not determine to seek to enter into a  Third Party In-License or fails to enter into such Third Party In-License in accordance with the  timelines set forth in this Section 2.5(c), then IVERIC may (but will not be required to) negotiate  and enter into a Third Party In-License with respect to the applicable Necessary Third Party IP.  (d) Each Party will be fully responsible for its own costs of diligence, analysis  and representation in connection with such Third Party issues under this Section 2.5.  2.6 No Implied Rights. Except as specifically set forth in this Agreement, neither Party  will acquire any license, intellectual property interest or other rights, by implication or otherwise,  in any Know-How disclosed to it under this Agreement or under any Patents Controlled by the  other Party or its Affiliates.  

 

EXECUTION VERSION  CONFIDENTIAL      14      2.7 Reservation of Rights. Notwithstanding anything to the contrary, DelSiTech will  not be restricted in the Field or in any indication (including with respect to DelSiTech’s right or  ability to acquire any license, intellectual property interest or other rights, by implication or  otherwise) other than (a) as set forth in Section 2.2 or (b) with respect to any exclusive rights  granted to IVERIC in accordance with Sections 2.2 or 2.4.   2.8 Rights Upon Bankruptcy. All rights and licenses granted by DelSiTech to IVERIC  under or pursuant to this Agreement are, and will otherwise be deemed to be, for purposes of  Section 365(n) of Title 11 of the United States Code and other similar laws in any jurisdiction  outside the U.S. (collectively, the “Bankruptcy Laws”), licenses of rights to “intellectual  property” as defined under the Bankruptcy Laws. If a case is commenced during the Term by or  against DelSiTech under Bankruptcy Laws then, unless and until this Agreement is rejected as  provided in such Bankruptcy Laws, DelSiTech (in any capacity, including debtor-in-possession)  and its successors and assigns (including a trustee) will perform all of the obligations provided in  this Agreement to be performed by DelSiTech. If a case is commenced during the Term by or  against DelSiTech under the Bankruptcy Laws, this Agreement is rejected as provided in the  Bankruptcy Laws and IVERIC elects to retain its rights hereunder as provided in the Bankruptcy  Laws, then DelSiTech (in any capacity, including debtor-in-possession) and its successors and  assigns (including a Title 11 trustee), will provide to IVERIC copies of all information necessary  for IVERIC to prosecute, maintain and enjoy its rights under the terms of this Agreement promptly  upon IVERIC’s written request therefor. All rights, powers and remedies of the IVERIC as  provided herein are in addition to and not in substitution for any and all other rights, powers and  remedies now or hereafter existing at law or in equity (including the Bankruptcy Laws) in the event  of the commencement of a case by or against DelSiTech under the Bankruptcy Laws.   ARTICLE 3  Development  3.1 Development. Except for any DelSiTech Program Activities, and subject to Section  3.5, IVERIC will be solely responsible for Development of each Licensed Product in the Territory  and will bear all costs and expenses relating to Development of such Licensed Product in the  Territory.   3.2 Work Plans. From time to time during the Term, IVERIC may request that  DelSiTech perform certain Development activities relating to the Licensed Products. After receipt  of any such request, the Parties will discuss and attempt to agree in good faith upon a Work Plan  (including a budget) for such activities, which will constitute DelSiTech Program Activities for  purposes of this Agreement. IVERIC will pay DelSiTech for performance of the work under any  Work Plan in accordance with the budget set forth therein.  3.3 Ownership of Data.   (a) Subject to Section 3.3(b), and to the extent permitted by applicable Law,  including any applicable Law related to data protection or privacy, IVERIC will solely own all  data related to any Licensed Product formulated with any DelSiTech Technology and all Clinical  

 

EXECUTION VERSION  CONFIDENTIAL      15      Data arising from activities undertaken with respect to any Licensed Product. To the extent that  DelSiTech creates any such data or Clinical Data, DelSiTech will provide to IVERIC a complete  copy of all such data or Clinical Data, and will assign and transfer, and hereby assigns and  transfers, to IVERIC, without further consideration, DelSiTech’s entire right, title and interest in  and to any such data and Clinical Data. DelSiTech will assist IVERIC as reasonably necessary to  ensure that title to such data and Clinical Data (and copyright in such data) is properly vested in  IVERIC pursuant to this Section 3.3(a). IVERIC will have sole discretion over what, if any,  Clinical Data it discloses to DelSiTech (including in the report provided pursuant to Section 3.2).  (b) All data relating solely to the DelSiTech Technology will be solely owned  by DelSiTech and included in DelSiTech Background Know-How comprising DelSiTech IP. It is  understood that where such data pertains to the formulation of DelSiTech Technology itself that  can be used to deliver a range of active substances, including the active substance in any Licensed  Product, only the data pertaining to the DelSiTech Technology in conjunction with the active  substance in such Licensed Product itself is owned by IVERIC pursuant to Section 3.3(a) and is  excluded from DelSiTech Background Know-How.  3.4 Regulatory Activities.  (a) Regulatory Submissions and Approvals. Subject to Section 3.5, IVERIC  will have sole discretion to, at its own cost, prepare and file all INDs and Registration Applications  and otherwise seek to obtain and maintain Regulatory Approvals and Pricing Approvals that are  necessary for Development, Manufacture and Commercialization of the Licensed Products.   (b) Safety Reporting. IVERIC will be responsible for and control reporting any  safety issues with respect to the Licensed Product in the Field in the Territory to Regulatory  Authorities or other Government Authorities in accordance with applicable Law. No later than  [**] for any Licensed Product, the Parties agree to enter into a pharmacovigilance agreement with  customary terms regarding mutual cross-reporting of relevant adverse events and safety issues  relating to such Licensed Product.  3.5 Development Diligence. The exclusive license granted to IVERIC under Section  2.2 and exclusivity covenant granted to IVERIC under the first sentence of Section 2.4 are granted  under the condition that IVERIC (directly, or through the efforts of one or more Affiliates or  Sublicensees) uses Commercially Reasonable Efforts to (i) Develop and [**] within the later of  (A) [**] after the Effective Date or (B) [**] after completion of [**], and (ii) seek Regulatory  Approval defined as submission of an appropriate regulatory file market authorization for at least  one Licensed Product in either the U.S. or the European Union. In the event IVERIC, in its sole  discretion, does not use Commercially Reasonable Efforts as set forth in this Section 3.5, such  circumstance shall not be considered a breach of this Agreement and the the sole and exclusive  consequences of such circumstance will be as set forth in Section 9.4.  

 

EXECUTION VERSION  CONFIDENTIAL      16      ARTICLE 4  Commercialization  4.1 Commercialization Diligence. The exclusive license granted to IVERIC under  Section 2.2 and the exclusivity covenant granted to IVERIC under the first sentence of Section 2.4  are granted under the condition that IVERIC (directly, or through the efforts of one or more  Affiliates or Sublicensees) uses Commercially Reasonable Efforts to Commercialize defined as  First Commercial Sale of at least one Licensed Product in the U.S. and the Major European  Countries within [**] after receipt of Regulatory Approval (and if applicable, Pricing Approval)  in such countries. In the event IVERIC, in its sole discretion, does not use Commercially  Reasonable Efforts as set forth in this Section 4.1, such circumstance shall not be considered a  breach of this Agreement and the sole and exclusive consequences of such circumstance will be  as set forth in Section 9.4.  4.2 Commercial Activities. Subject to Section 4.1, IVERIC will be solely responsible  for all Commercialization activities in IVERIC’s sole discretion at IVERIC’s sole expense.  ARTICLE 5  Manufacture  5.1 General. Until such time as the Parties complete the Technology Transfer pursuant  to Section 5.3, but after the completion of the activities described and agreed in the SA and its  Annexes, including Amendments to the Annexes, DelSiTech will Manufacture (or have  Manufactured) and supply IVERIC, at IVERIC’s expense based on DelSiTech’s actual, direct  costs (such as salaries and their side costs, material costs, rental costs, CMO costs etc. directly  allocable to supplying Licensed Product pursuant to this Section 5.1) (the “Supply Costs”) plus a  [**] percent ([**]%) premium on such Supply Costs, with quantities of such Licensed Product for  Development purposes (including for use in carrying out the activities to be conducted by IVERIC  under each Work Plan, as applicable). In the event IVERIC participates in the Private Placement  according to section 6.2 with a minimum purchase of New Securities having a value at the time of  purchase of the lesser of (i) USD [**]) and (ii) [**] percent ([**]%) of the shares of DelSiTech  outstanding on a pro forma basis following the Private Placement, the manufacturing premium set  forth in this Section 5.1 will be [**] percent ([**]%) of the Supply Costs. Notwithstanding  anything to the contrary in the foregoing, in the event that DelSiTech elects not to offer IVERIC  the right to participate in a Private Placement on substantially the same terms offered to other  purchasers in such Private Placement in accordance with Section 6.2, the manufacture premium  described in this Section 5.1 for supply of Licensed Product for Development purposes will  thereafter be reduced to [**] percent ([**]%). IVERIC will be obligated to supply to DelSiTech,  at IVERIC’s expense and no additional cost to DelSiTech, all quantities of the IVERIC Product in  a given Licensed Product required as and when needed to enable such supply of Licensed Product  and to enable DelSiTech to complete any DelSiTech Program Activities.  5.2 Clinical Supply.   

 

EXECUTION VERSION  CONFIDENTIAL      17      (a) Until such time as IVERIC has entered into an agreement for direct supply  with respect to a Licensed Product from a CMO pursuant to Section 5.2(b), DelSiTech will  Manufacture clinical supply of such Licensed Product exclusively for IVERIC pursuant to a  mutually acceptable clinical supply agreement with a cost structure consistent with that provided  for under Section 5.1 above, and which the Parties will use reasonable best efforts to enter into  within [**] after selection of the final formulation of such Licensed Product for the toxicology  studies or in accordance with such other timeline as the Parties may mutually agree through the  Manufacturing Committee to ensure timely supply, which agreement will be attached hereto as  Exhibit B upon the execution thereof (the “Clinical Supply Agreement”). Concurrently with the  Clinical Supply Agreement, the Parties will negotiate and enter into a quality agreement, which  agreement will be attached to the Clinical Supply Agreement (the “Quality Agreement”).   (b) IVERIC will have the right to negotiate and enter into an agreement for  clinical supply of the Licensed Product directly with one or more CMOs selected by IVERIC and  reasonably acceptable to DelSiTech. At IVERIC’s request and cost, DelSiTech will provide  reasonable assistance to IVERIC in the identification and assessment of any CMO to Manufacture  the Licensed Product.   5.3 Manufacturing Transfer. Promptly following IVERIC’s request, DelSiTech will,  and will cause its Affiliates and contractors to, reasonably cooperate with IVERIC to facilitate the  technology transfer to IVERIC and any CMO designated by IVERIC of all Licensed Know-How  to fully enable IVERIC, its Affiliates and Sublicensees to Manufacture Licensed Products  (including any DelSiTech Technology component thereof) independent of DelSiTech (the  “Technology Transfer”), including all processes, methods and techniques used by or on behalf  of DelSiTech in the practice of the DelSiTech Technology. The Technology Transfer will include  DelSiTech providing IVERIC and its designated CMO(s) with such assistance as may be  reasonably requested by IVERIC in order to fully enable Manufacturing of Licensed Product,  including reasonable access by teleconference or in-person at DelSiTech’s and DelSiTech’s  Affiliates’, and its and their contractors’, facilities to appropriate personnel from DelSiTech and  its Affiliates and its and their contractors, and a reasonable level of technical assistance and  consultation. IVERIC will pay DelSiTech’s [**] costs and expenses (including labor costs) of  effecting the Technology Transfer as requested by IVERIC pursuant to this Section 5.3.  5.4 Manufacturing Committee.   (a) Formation and Responsibilities. Within [**] after the Effective Date, the  Parties will establish a manufacturing committee (the “Manufacturing Committee”) to (i)  coordinate and monitor clinical supply of Licensed Product to IVERIC and any Technology  Transfer and (ii) serve as a forum for representatives of the Parties to discuss technical matters  relating to Manufacture of Licensed Product hereunder. The Manufacturing Committee will be  comprised of [**] representatives of each Party, each of whom will have the appropriate  experience and expertise to perform its responsibilities on the Manufacturing Committee. Each  Party will provide notice to the other Party of its initial representatives to the Manufacturing  Committee. Either Party may replace its representatives with similarly qualified individuals at any  time upon prior written notice to the other Party. If agreed by the Manufacturing Committee on a  

 

EXECUTION VERSION  CONFIDENTIAL      18      case-by-case basis, the Manufacturing Committee may invite other non-members to participate in  the discussions and meetings of the Manufacturing Committee, provided that such participants will  have no voting authority at the Manufacturing Committee and that any such non-employee  participants are bound by written obligations of non-use and confidentiality no less stringent than  those set forth in Article 8.   (b) Meetings and Decision Making. The Manufacturing Committee will meet  in person or by teleconference at least [**] until the completion of the Technology Transfer, or  with such other frequency as the Parties may agree. A quorum for a meeting of the Manufacturing  Committee will require the presence of at least one (1) representative from each Party. Each Party  will cause a quorum of their representatives to the Manufacturing Committee to attend all meetings  thereof. All decisions within the authority of the Manufacturing Committee will be made by  unanimous vote, with each Party’s representatives collectively having one (1) vote. If the  Manufacturing Committee is unable to reach agreement as to a particular matter within [**] (or a  later date mutually agreed to by the Parties) after such matter has been brought to the  Manufacturing Committee for resolution, then such disagreement will be referred to the Executive  Officers of the Parties for resolution in accordance with Article 12. The Manufacturing Committee  will not have any authority to: (i) amend or modify any terms of the Agreement or waive  compliance with the terms of this Agreement; (ii) increase a Party’s obligations in any respect  beyond what is set forth in this Agreement; or (iii) exercise any rights or perform any activities of  a Party unless expressly contemplated by this Agreement.  (c) Costs of Participation in the Manufacturing Committee.  Each Party shall  bear its own costs for participating in the Manufacturing Committee.  (d) Dissolution of the Manufacturing Committee. The Manufacturing  Committee will disband upon completion of the Technology Transfer, provided, however that the  disbanding of the Manufacturing Committee will not relieve DelSiTech of its obligation to provide  support to IVERIC pursuant to Section 5.3.    ARTICLE 6  Consideration and Payments  6.1 Upfront Payment. In consideration of the rights granted hereunder, IVERIC will  pay DelSiTech an upfront payment of One Million Two Hundred and Fifty Thousand Euro  (€1,250,000), which payment is due and is payable by IVERIC no later than sixty (60) days after  the Effective Date.  6.2 Participation Option in Private Placement. In association with the collaboration  between DelSiTech and IVERIC, DelSiTech may offer IVERIC an opportunity to purchase New  Securities in a Private Placement on substantially the same terms offered to other purchasers of  such New Securities. In connection with each such offer, DelSiTech will give notice (each, an  “Offer Notice”) to IVERIC, stating: (i) DelSiTech’s bona fide intention to offer such New  

 

EXECUTION VERSION  CONFIDENTIAL      19      Securities in a Private Placement; (ii) the number of such New Securities to be offered to IVERIC  in such Private Placement; and (iii) the price and terms, if any, upon which it proposes to offer  such New Securities in such Private Placement. For the avoidance of doubt, DelSiTech has no  obligation to offer any New Securities to IVERIC and IVERIC is under no obligation to purchase  any New Securities. In the event DelSiTech offers New Securities to IVERIC and IVERIC agrees  to purchase such New Securities, any milestone payments payable by IVERIC to DelSiTech  following IVERIC’s purchase of such New Securities will be discounted by an amount equal to  the aggregate purchase price of New Securities paid by IVERIC to DelSiTech in consideration for  such New Securities; provided, however, that in no event shall any such discount to a Development  Milestone Payment reduce the amount of such Development Milestone Payment by greater than  [**] percent ([**]%), and IVERIC may apply to any future Development Milestone Payment any  remaining discount in respect of the purchase price of the New Securities IVERIC would have  been entitled to take under this Section 6.2 but for the preceding proviso (subject, however, to the  limitation provided in this Section 6.2).  6.3 Development Milestone Payments. IVERIC will pay DelSiTech, within [**] after  achievement therof, a milestone payment upon achievement by IVERIC, its Affiliates or a  Sublicensee of the applicable Development milestone event for the Licensed Product as set forth  in the table below, such payments to be in the listed amounts for the applicable Development  milestone event. Each such milestone payment will be paid no more than once (for clarity, if there  are multiple Licensed Products being developed, the Development milestone will only be paid for  the first achievement by a Licensed Product that meets such milestone). All payments made by  IVERIC under this Section 6.3 will be non-refundable and non-creditable against any other  amounts owed by IVERIC under this Agreement.  Development Milestone Event  Development  Milestone  Payment  [**] [**]  [**] [**]  [**] [**]  [**] [**]  [**] [**]  [**] [**]  [**] [**]  [**] [**]  

 

EXECUTION VERSION  CONFIDENTIAL      20      6.4 Sales Milestones. IVERIC will pay to DelSiTech within [**] after the end of the  Calendar Year of the first achievement by IVERIC or its Affiliates or Sublicensees under this  Agreement of a given milestone event described below in this Section 6.4 with respect to the first  Licensed Product to achieve such milestone events:  Commercial Milestone Event Commercial Milestone Payment  First achievement of aggregate Net Sales of the  Licensed Product exceeding [**] Euro (€[**])   [**]  First achievement of aggregate Net Sales of the  Licensed Product exceeding [**] Euro (€[**])   [**]  First achievement of aggregate Net Sales of the  Licensed Product exceeding [**] Euro (€[**])   [**]    For each subsequent Licensed Product after the first Licensed Product that achieves one or more  of the foregoing milestones events in this Section 6.4, IVERIC will pay DelSiTech milestone  payments equal to [**] percent ([**]%) of the corresponding milestone payment set forth in the  table above.   6.5 Royalties. Subject to Section 6.6, IVERIC will pay to DelSiTech royalties on  Licensed Products, on a Licensed Product-by-Licensed Product and country-by-country basis, in  respect of Net Sales of such Licensed Product until the expiration of the applicable Royalty Term,  at a royalty rate equal to [**] percent ([**]%). Upon expiration of the Royalty Term for a Licensed  Product in a country, all licenses granted to IVERIC hereunder with respect to such Licensed  Product in such country will become royalty-free, fully paid-up, perpetual, irrevocable and will  survive any termination or expiration of this Agreement.  6.6 Royalty Reductions.  (a) Third Party In-Licenses. In the event that, during the Royalty Term on a  Licensed Product-by- Licensed Product basis, IVERIC, its Affiliates or Sublicensees are required  to pay royalties to a Third Party pursuant to a Third Party In-License entered into by IVERIC  pursuant to Section 2.5(c), then IVERIC may deduct up to [**] percent ([**]%) of the royalties  payable to such Third Party for such Third Party In-License(s) from royalties owed by IVERIC to  DelSiTech under Section 6.5 for Net Sales of the applicable Licensed Product with such reduction  continuing until all such amounts have been deducted. In cases where royalties under the Third  Party License are not readily attributable to a country, IVERIC may allocate such royalties to  countries using a reasonable methodology.   (b) Loss of Market Exclusivity. If (i) both of the following events occur in any  country in the Territory over any two consecutive Calendar Quarters: (A) the Net Sales of a  Licensed Product in such country, annualized for a calendar year, is less than [**] percent ([**]%)  

 

EXECUTION VERSION  CONFIDENTIAL      21      of the peak Annual Net Sales of such Product in such country in any preceding Calendar Year, and  (B) a product is being sold in such country that contains the same or substantially equivalent active  pharmaceutical ingredient as the Licensed Product and is formulated using silica sol gel technology  for encapsulation, embedding and delivery of biologically active agents for intravitreal delivery,  or such product was approved in such country using an abbreviated regulatory pathway as that for  the Licensed Product, then (ii) the royalties owed by IVERIC to DelSiTech under Section 6.5 for  Net Sales of the applicable Licensed Product in such country will be reduced by [**] percent  ([**]%) for as long as the conditions in (A) and (B) above exist.   (c) Limitation on Aggregate Milestone and Royalty Reductions. No reduction  pursuant to Section 6.6(a) and 6.6(b) will in any event reduce the royalties payable to DelSiTech  to less than [**] percent ([**]%) of the amount that would otherwise be due pursuant to Section  6.5, with a royalty rate floor of [**] percent ([**]%) of Net Sales; provided, however, that if the  foregoing limitation does not permit IVERIC to take the full reduction otherwise permitted in  Section 6.6(a), and IVERIC may carry forward to subsequent payment periods any reduction it  would have been entitled to take under Section 6.6(a) but for the preceding proviso (subject,  however, to the limitation provided in this Section 6.6(c)).   6.7 Reports and Payments.  (a) Milestones. IVERIC will promptly notify DelSiTech of the achievement of  any milestone event for the Licensed Product in the Field achieved in accordance with Sections  6.3 and 6.4. All milestone payments will be due on the applicable date provided for under Sections  6.3 and 6.4 and are non-refundable, and non-creditable against any other payments due hereunder,  except that the milestone payment under Section 6.4 will be paid pursuant to paragraph (b) below  concurrently with royalties for the quarter during which such milestone was achieved.  (b) Royalties. Within [**] after the end of each quarter, IVERIC will deliver to  DelSiTech a report setting forth for such quarter the following information: (i) the Net Sales for  the Licensed Product, and the basis for the calculation of Net Sales; (ii) the applicable royalty rate  (and any reductions thereto); and (iii) the royalty amount due hereunder for the sales of the  Licensed Product. No such reports will be due for any Licensed Product before the First  Commercial Sale of the Licensed Product in the Territory. The total royalty due for the sale of the  Licensed Product during such quarter will be remitted no later than [**] after the end of each such  quarter.  6.8 Payment Method. Payments hereunder will be paid by wire transfer, or electronic  funds transfer (EFT) in immediately available funds to a bank account designated by DelSiTech  at least [**] in advance of the due date for such payment.  6.9 Currency. Amounts payable under Sections 2.5 and 6.7(b) will be payable in United  States Dollars, all other amounts payable hereunder will be payable in Euro. Conversion of sales  recorded in local currencies to United States Dollars will be performed in a manner consistent with  IVERIC’s normal practices used to prepare its financial statements and consistent with its  

 

EXECUTION VERSION  CONFIDENTIAL      22      Accounting Standards, provided that such practices use a widely accepted source of published  exchange rates.  6.10 Taxes and Withholding.  (a) Taxes and Withholding. All payments due from IVERIC to DelSiTech  under this Agreement will be made without any deduction or withholding for or on account of any  tax unless such deduction or withholding is required by applicable Laws to be assessed against  DelSiTech (for example, any royalty withholding tax that may apply under applicable Laws, as  may be reduced under the applicable double tax treaty, such as the U.S. – Finland Double Tax  Treaty). If IVERIC is so required to deduct or withhold, IVERIC will (a) promptly notify  DelSiTech of such requirement, (b) pay to the relevant authorities the full amount required to be  deducted or withheld promptly upon the earlier of determining that such deduction or withholding  is required or receiving notice that such amount has been assessed against DelSiTech, (c) promptly  forward to DelSiTech an official receipt (or certified copy) or other documentation reasonably  acceptable to DelSiTech, to the extent available, evidencing such payment to such authorities, and  (d) otherwise reasonably cooperate with DelSiTech in connection with DelSiTech’s attempts to  obtain any reasonably available favorable tax treatment and credit therefor (where appropriate) in  accordance with applicable Laws. To the extent that amounts are so withheld by IVERIC, or any  other withholding agent, such withheld amounts shall be treated for all purposes of this Agreement  as having been paid to DelSiTech, or such DelSiTech designated person, in respect of which such  deduction and withholding was made by IVERIC, or any other withholding agent, as applicable.  (b) Tax Documentation. DelSiTech has provided a properly completed and  duly executed IRS Form W-9 or applicable Form W-8 to IVERIC. DelSiTech shall provide to  IVERIC, at the time or times reasonably requested by IVERIC or as required by applicable Law,  such properly completed and duly executed documentation (for example, IRS Forms W-8 or W- 9) as will permit payments made under this Agreement to be made without, or at a reduced rate of,  withholding for taxes, and the applicable payment shall be made without (or at a reduced rate of)  withholding to the extent permitted by such documentation, as reasonably determined by IVERIC.  (c) VAT. Notwithstanding anything to the contrary in this Agreement  (including anything to the contrary in this Section 6.10), this Section 6.10(c) shall apply with  respect to value added tax or any similar tax (“VAT”). All amounts to be paid by IVERIC to  DelSiTech under this Agreement are inclusive of VAT, to the extent applicable, unless separately  stated. Any supply of goods or services under this Agreement will be taxed, if at all, in accordance  with the prevailing VAT legislation. Each Party will reasonably cooperate to enable the use of any  VAT exemptions, suspensions or other relief to the extent reasonably practicable. If any assessed  VAT paid by IVERIC cannot legally be recovered by IVERIC, then IVERIC and its affiliate(s)  will be entitled to offset such VAT against any and all future payments to DelSiTech or where  necessary, invoice DelSiTech directly for these amounts and DelSiTech will pay such amounts to  IVERIC within [**] following DelSiTech’s receipt thereof.  6.11 Maintenance of Records. IVERIC will keep accurate books and accounts of record  in connection with the sale of Licensed Product and the calculation of payments to be made under  

 

EXECUTION VERSION  CONFIDENTIAL      23      this Agreement in accordance with its Accounting Standards, and in any event in sufficient detail  to permit accurate determination of all figures necessary for verification of royalties and other  payments to be paid from IVERIC to DelSiTech under this Agreement. IVERIC will maintain  such records for a period of at least [**] after the end of the calendar year in which they were  generated.  6.12 Audits. DelSiTech will have the right, at its own expense and no more than once  per calendar year, to have an independent, certified public accountant, selected by DelSiTech and  reasonably acceptable to IVERIC, review all records maintained in accordance with Section 6.11  upon reasonable notice and during regular business hours and under obligations of strict  confidence, for the sole purpose of verifying the basis and accuracy of payments required and  made under this Agreement within the prior [**] period. No [**] may be audited more than [**].  IVERIC will receive a copy of each audit report promptly from DelSiTech. Should the inspection  lead to the discovery of a discrepancy to DelSiTech’s detriment, IVERIC will pay the amount of  the discrepancy in DelSiTech’s favor within [**] after being notified thereof. DelSiTech will pay  the full cost of the inspection unless the discrepancy is greater than [**] percent ([**]%) of the  amount paid for the applicable year that is subject of such inspection, in which case IVERIC will  pay to DelSiTech the reasonable and documented cost charged by such accountant for such  inspection. If such audit shows a discrepancy in IVERIC’s favor, then IVERIC may credit the  amount of such discrepancy against subsequent amounts owed to DelSiTech, or if no further  amounts are owed under this Agreement, then DelSiTech will pay IVERIC the amount of the  discrepancy within [**] after being notified thereof.  ARTICLE 7  Intellectual Property  7.1 Ownership of Intellectual Property.  (a) Ownership. As between the Parties: (i) DelSiTech will solely own all  DelSiTech Background IP and all DelSiTech Improvement IP; and (ii) IVERIC will solely own  all IVERIC Background IP and all IVERIC Improvement IP.   (b) Assignment. Each Party hereby makes and agrees to make all assignments  necessary in order to effectuate the intent of Section 7.1(a). Each Party will ensure that all persons  performing activities under this Agreement are bound by written obligations to assign to such Party  all rights, title and interest in any to intellectual property rights in any Inventions Created by such  persons in order to effectuate the intent of Section 7.1(a).  (c) Power of Attorney. In the event a Party is unable for any reason to secure  the signature of the other Party or other Party’s employees or consultants to any document required  to file, prosecute, register, or memorialize the assignment, the other Party for itself or on behalf of  its employee(s) and consultants does hereby irrevocably designate and appoint such Party and such  Party’s duly authorized officers and agents as such other Party’s agents and attorneys-in-fact to act  for and on such other Party and its employees’ and consultants’ behalf and, instead of such other  Party (or its employees or consultants, as applicable), to do all lawfully permitted acts to further  

 

EXECUTION VERSION  CONFIDENTIAL      24      the Prosecution and Maintenance of DelSiTech IP or IVERIC IP, as applicable, all with the same  legal force and effect as if executed by such other Party (or its employees or consultants).  7.2 Prosecution and Maintenance of Patents.  (a) DelSiTech IP. DelSiTech will have the sole right and discretion for the  Prosecution and Maintenance of any Patents in the DelSiTech IP at its own sole cost; provided,  however, that DelSiTech will, at a minimum, Prosecute and Maintain the DelSiTech IP in the  United States and each of the Major European Countries where DelSiTech IP is valid. DelSiTech  will keep IVERIC apprised of the status of each Patent within the DelSiTech Background IP and  DelSiTech Improvement IP and will provide copies of Prosecution and Maintenance documents  at the request and cost of IVERIC. DelSiTech will consider timely comments and  recommendations of IVERIC with respect to DelSiTech’s Prosecution and Maintenance under this  Section 7.2(a); provided, however, that DelSiTech will have the ultimate responsibility and  authority with respect to Prosecution and Maintenance under this Section 7.2(a) at DelSiTech’s  own cost and expense.  (b) IVERIC Background IP and IVERIC Improvement IP. IVERIC will have  the sole right and discretion for the Prosecution and Maintenance of any Patents in the IVERIC IP  at its own sole cost. At IVERIC’s request, DelSiTech will: (i) provide IVERIC with any relevant  information regarding the DelSiTech Technology component of any Licensed Product as  reasonably necessary for IVERIC to file Patents Covering the Licensed Product (including any  IVERIC Improvement Patent); and (ii) provide IVERIC with any reasonably requested assistance  in Prosecution and Maintenance of Patents Covering the Licensed Product. IVERIC will pay for  reasonable costs and expenses incurred by DelSiTech in providing the foregoing assistance as  requested by IVERIC.  (c) Patent Term Extensions. IVERIC will have sole authority to make decisions  for a patent term extension (e.g., selection of which patents to apply for patent term extension) in  respect to any Licensed Products pursuant to rights under the Drug Price Competition and Patent  Term Restoration Act, 21 U.S.C. §355, as amended (or any successor statute or regulation) in the  U.S., and pursuant to any analogous Law in a foreign jurisdiction (each, a “PTE”); provided,  however, that IVERIC may not elect to file for such PTE on a Licensed Patent that solely covers  the DelSiTech Technology without DelSiTech’s prior written consent. In the event that DelSiTech  does not consent to IVERIC filing for PTE on a Licensed Patent that solely covers the DelSiTech  Technology, DelSiTech shall not, and shall not permit any Affiliate or Third Party to, apply a PTE  for such Licensed Patent with respect to any product that is competitive with such Licensed  Product.  7.3 Defense of Third Party Infringement Claims. Subject to the Parties’ respective  indemnification rights and obligations pursuant to Article 11, if a Licensed Product becomes the  subject of a Third Party’s claim or assertion of infringement of a Patent or misappropriation of  Know-How relating to the Development, Manufacture or Commercialization or other exploitation  of such Licensed Product in the Field in the Territory (each, an “Infringement Claim”), the Party  first having notice of the claim or assertion will promptly notify the other Party, and the Parties  

 

EXECUTION VERSION  CONFIDENTIAL      25      will promptly confer to consider the claim or assertion and the appropriate course of action. Unless  the Parties otherwise agree in writing: (a) if the Infringement Claim pertains solely to the  DelSiTech Technology alone and not in combination with any Licensed Product, DelSiTech will  have the first right to defend such Infringement Claim, and IVERIC will reasonably assist  DelSiTech at DelSiTech’s request and expense; and (b) otherwise, IVERIC will have the sole right  to defend such Infringement Claim, and DelSiTech will reasonably assist IVERIC at IVERIC’s  request and expense. If DelSiTech elects not to take action with respect to any Infringement Claim  that is the subject of subsection (a) above, IVERIC may take responsibility for the defense at  IVERIC’s sole option and at IVERIC’s expense, and DelSiTech will reasonably assist IVERIC at  IVERIC’s request and expense. The Party defending the Infringement Claim will keep the other  Party reasonably informed with respect to the progress of any such defense, and provide copies of  briefs, motions, or other litigation or dispute resolution documents on request. Neither Party will  enter into any settlement of any claim described in this Section 7.3 that adversely affects the other  Party’s rights and interests without that Party’s written consent, which consent will not be  unreasonably withheld, conditioned or delayed.   7.4 Enforcement; Patent Challenges. In the event that a Party reasonably believes that  any Licensed Technology is being infringed by a Third Party in the Field in the Territory or is  subject to a declaratory judgment action arising from such infringement (“Declaratory Judgment  Action”) or becomes aware of any actual or threatened challenge by a Third Party with respect to  the scope, validity or enforceability of any such Patent included in the Licensed Technology in the  Territory, whether through opposition, inter partes dispute or otherwise (“Third Party  Challenge”) (all of the foregoing, collectively “Enforcement Actions”), such Party will promptly  notify the other Party. Such challenges will be handled as follows:  (a) DelSiTech Control. DelSiTech will have the sole right and responsibility,  in its discretion over Enforcement Actions that pertain solely to the DelSiTech Technology alone  and not in combination with any Licensed Product, at DelSiTech’s sole expense. DelSiTech will  keep IVERIC apprised of the status of the Enforcement Actions to the extent it pertains to a  Licensed Product, including by providing filed documents upon request. DelSiTech will also have  the sole right to settle or otherwise dispose of any such Enforcement Action, and the full right to  any damages or recovery; provided, however, that DelSiTech will not agree to any settlement,  consent judgment or other voluntary final disposition of such Enforcement Action that adversely  affects IVERIC or IVERIC’s rights hereunder without IVERIC’s prior written consent, which  consent will not be unreasonably withheld, conditioned or delayed. If DelSiTech specifically  requests assistance from IVERIC during the course of any such Enforcement Action, IVERIC will  provide reasonable assistance at DelSiTech’s cost.   (b) IVERIC Control. IVERIC will have the sole right and responsibility, in its  sole discretion, over all Enforcement Actions other than the Enforcement Actions subject to  DelSiTech’s control under Section 7.4(a), at IVERIC’s sole expense. IVERIC will keep DelSiTech  apprised of the status of the Enforcement Actions to the extent it pertains to the DelSiTech  Technology, including by providing filed documents on request. At IVERIC’s request, DelSiTech  will join in any such Enforcement Action. If IVERIC specifically requests any assistance from  DelSiTech during the course of any such Enforcement Action, DelSiTech will provide reasonable  

 

EXECUTION VERSION  CONFIDENTIAL      26      assistance at IVERIC’s cost. IVERIC will not agree to any settlement, consent judgment or other  voluntary final disposition of such Enforcement Action that adversely affects DelSiTech’s rights  in the DelSiTech Technology without DelSiTech’s prior written consent, which consent will not  be unreasonably withheld, conditioned or delayed.  7.5 Recoveries. Except as specifically otherwise provide in Sections 7.3 or 7.4, as  applicable, any recovery received as a result of any Infringement Claim or Enforcement Action  pursuant to this Article 7, will be used first to reimburse the Party defending or bringing the  Infringement Claim or Enforcement Action, as applicable, for its costs and expenses (including  attorneys’ and professional fees), then to reimburse the other Party for its costs and expenses  (including attorneys’ and professional fees) and the remainder of the recovery will be retained by  the Party defending or bringing the Infringement Claim or Enforcement Action, except that, if the  Party defending or bringing the Infringement Claim or Enforcement Action is IVERIC and the  Infringement Claim or Enforcement Action relates to any Patent in the DelSiTech IP, IVERIC will  remit to DelSiTech [**] percent ([**]%) of such remaining recovery.  7.6 Cooperation. Unless as otherwise specified above: (a) each Party is entitled to the  full cooperation of the other Party in all actions taken under Article 7, including by joinder as  necessary; (b) each Party is hereby authorized to name the other Party in the suit as necessary, and  (c) the other Party will cooperate as necessary. Each Party will offer reasonable assistance to the  other Party in connection therewith at no charge to the initiating Party except for reimbursement  of reasonable out-of-pocket expenses incurred in rendering such assistance, which will be paid as  provided in Section 7.3 or 7.4, as applicable. The other Party will have the right to participate and  be represented in any such suit by its own counsel at its own expense.  7.7 Provisional Patent Application.  The Parties agree to cooperate to jointly prepare  the Provisional Patent Application to enable IVERIC to file the Provisional Patent Application  with the United States Patent and Trademark Office promptly following the Effective Date;  provided that IVERIC shall have final decision making authority with respect to the contents and  timing of filing of the Provisional Patent Application.  ARTICLE 8  Confidentiality  8.1 Confidentiality; Exceptions. Except to the extent expressly authorized by this  Agreement, each Party (in such capacity, the “Receiving Party”) agrees that it will keep  confidential and will not publish or otherwise disclose or use any of the other Party’s (in such  capacity, “Disclosing Party”) Confidential Information for any purpose other than to perform its  obligations and exercise its rights as provided for in this Agreement. Without limiting the  foregoing, the Receiving Party will treat the Disclosing Party’s Confidential Information with the  same degree of care as the Receiving Party uses for its own similar information, but in no event  less than a reasonable degree of care.  8.2 Authorized Disclosure.  

 

EXECUTION VERSION  CONFIDENTIAL      27      (a) Disclosure to a Party’s Representatives. Notwithstanding Section 8.1, the  Receiving Party may disclose Confidential Information belonging to the Disclosing Party to the  Receiving Party’s Representatives who: (a) have a need to know such Confidential Information in  connection with the performance of the Receiving Party’s obligations or the exercise of the  Receiving Party’s rights under this Agreement; and (b) have agreed in writing to non-disclosure  and non-use provisions with respect to such Confidential Information that are at least as restrictive  as those set forth in this Article 8.  (b) Disclosure to Third Parties. Notwithstanding Section 8.1, each Party may  disclose Confidential Information belonging to the other Party to the extent such disclosure is  reasonably necessary:  (i) to Governmental Authorities (A) to the extent desirable to obtain or  maintain INDs or Regulatory Approvals for any Licensed Product within the Territory and (B) in  order to respond to inquiries, requests or investigations relating to Licensed Products or this  Agreement;  (ii) to existing or prospective outside consultants, contractors, advisory  boards, collaboration partners, CMOs, professional advisors, non-clinical and clinical  investigators, in each case to the extent desirable to develop, register or market any Licensed  Product or otherwise as reasonably necessary to perform such Party’s obligations under this  Agreement; provided that the Receiving Party must obtain the same confidentiality obligations  from such Third Parties as it obtains with respect to its own similar types of confidential  information;  (iii) in connection with filing or prosecuting Patent or other intellectual  property rights;  (iv) in connection with prosecuting or defending litigation or other legal  proceedings;  (v) subject to the provisions of Section 8.5, in connection with or  included in scientific presentations and publications relating to Licensed Products, including  abstracts, posters, journal articles and the like, and posting results of and other information about  clinical trials to clincialtrials.gov or EudraCT websites;  (vi) to a court, arbitrator or mediator, to the extent reasonably necessary  in order to enforce its rights under this Agreement;  (vii) in communication with existing or prospective investors, lenders,  professional advisors, acquirers, merger partners, collaboration partners, subcontractors,  Sublicensees, or licensees on a need to know basis, in each case under appropriate confidentiality  obligations substantially equivalent to those of this Agreement; or  (viii) to the extent mutually agreed to in writing by the Parties.  

 

EXECUTION VERSION  CONFIDENTIAL      28      8.3 Residual Knowledge Exception. Notwithstanding any provision of this Agreement  to the contrary, Residual Knowledge will not be considered Confidential Information for purposes  of this Article 8.  8.4 Press Release; Disclosure of Agreement.  (a) Press Releases. On or promptly after the Effective Date, the Parties  anticipate issuing a public announcement regarding the signing of this Agreement in a form to be  agreed by the Parties; provided that the Parties agree to delay the issuance of the public  announcement regarding the signing of this Agreement to allow IVERIC a reasonable opportunity  to complete and file the Provisional Patent Application with the United States Patent and  Trademark Office prior to any public announcement of this Agreement. Except as may be  expressly permitted under Section 8.4(b), neither Party will make any public announcement  regarding this Agreement without the prior written approval of the other Party; provided that to  the extent information regarding this Agreement has already been publicly disclosed, except as a  result of a breach of this Agreement, each Party may subsequently disclose the same information  to the public without the consent of the other Party, provided that such information remains true,  accurate, and up to date. DelSiTech acknowledges and agrees that nothing in this Agreement will  prevent IVERIC from making any scientific publication or public announcement with respect to  any Licensed Product or work under this Agreement, provided that such scientific or public  announcement does not include DelSiTech’s Confidential Information.   (b) SEC Filings and other Disclosures of this Agreement. Notwithstanding  Section 8.4(a), each Party will be permitted to disclose the existence and terms of this Agreement  (including, as applicable, amendments thereof) to the extent required to comply with applicable  Laws including the rules or regulations of the U.S. Securities and Exchange Commission, or  similar agency in any country other than the United States, or of any stock exchange, including  Nasdaq, provided that: (i) prior to disclosing this Agreement or any of the terms hereof as permitted  under this Section 8.4(b), the Parties will coordinate in advance with each other in connection with  the redaction of certain provisions of this Agreement prior to such disclosure (the “Redacted  Version”); (ii) to the extent permitted by applicable Laws, the Parties will use reasonable efforts  to file redacted versions with such agencies and stock exchanges that are consistent with the  Redacted Version; and (iii) each Party will, at its own expense, use reasonable efforts to seek  confidential treatment for such terms as may be reasonably requested by the other Party.  8.5 Publications. Except for a Party’s rights as set forth in the last sentence of Section  8.4(a), neither Party may make any publication (including in any Patent filing) relating to any  Licensed Product or the work under this Agreement without the other Party’s prior written consent,  and subject to the procedures set forth in this Section 8.5. The Party desiring to make a publication  will provide the other Party with a copy of such publication at [**] with respect to disclosures in  a patent application) prior to its intended submission for publication or presentation. The other  Party will respond in writing promptly and in no event later than [**] after receipt of the proposed  publication or presentation, with one or more of the following: (a) comments on the proposed  publication or presentation, which the publishing Party will consider in good faith and use  reasonable efforts to incorporate; (b) a specific statement of concern, based upon the need to delay  

 

EXECUTION VERSION  CONFIDENTIAL      29      publication if the other Party determines that the proposed publication or presentation contains or  describes intellectual property that needs to be incorporated into a Patent application; provided  that such delay will not exceed an additional [**] unless agreed in writing by the Parties; or (c) an  identification of the other Party’s Confidential Information that needs to be removed from the  proposed publication or presentation.  8.6 Remedies. Each Party will be entitled to seek, in addition to any other right or  remedy it may have, at Law or in equity, a temporary injunction, enjoining or restraining the other  Party from any violation or threatened violation of this Article 8.  ARTICLE 9  Term and Termination  9.1 Term. This Agreement is effective as of the Effective Date and will continue in full  force and effect unless earlier terminated by a Party in accordance with Section 9.2 and will expire  on a Licensed Product-by-Licensed Product and country-by-country basis upon the expiration of  the Royalty Term for such Licensed Product in such country (the “Term”). Upon expiration of  this Agreement, the licenses set forth in Section 2.2 will become royalty-free, perpetual, fully paid  up and irrevocable.  9.2 Termination.  (a) For Convenience. IVERIC may terminate this Agreement in its entirety or  with respect to any Licensed Product, upon sixty (60) days prior written notice to DelSiTech, for  any reason or for no reason.  (b) For Cause.   (i) If either Party materially breaches this Agreement, the non- breaching Party may give written notice to the breaching Party specifying the claimed particulars  of such breach. The non-breaching Party will have up to [**] to cure the material breach (except  in the event of failure to make any payment as and when due, in which case the cure period will  be [**]) (as applicable, the “Cure Period”). If a material breach (other than payment breaches) of  any material obligation is not capable of being cured within the Cure Period, then the Cure Period  will be extended for an additional [**] so long as such material breach is capable of being cured  within such extension period and the breaching Party has used and continues to use commercially  reasonable efforts to cure such material breach during such extension period. If (A) a cure is not  provided within the applicable Cure Period, or if the breach is not curable at all, then (B), the non- breaching Party will have the right (but not the obligation) to terminate this Agreement  immediately by giving written notice to the breaching Party to such effect.   (ii) Any Disputes concerning whether any breach constitutes a material  breach will be resolved through the dispute resolution process of Section 12.3; provided, however,  that if (A) the Party accused of materially breaching this Agreement notifies the accusing Party in  writing within the applicable Cure Period that the accused Party disputes that it is in material  breach, then (B) no such termination will become effective until (1) a final, binding determination  

 

EXECUTION VERSION  CONFIDENTIAL      30      is made pursuant to Section 12.3 that the accused Party was in material breach, (2) such Party fails  to cure such breach within the Cure Period, and (3) the accused Party delivers written notice  terminating this Agreement after the expiry of such period. During the pendency of any Dispute  described in this Section 9.2(b)(ii), (x) the relevant Cure Period with respect to any alleged material  breach will be tolled from the date that notice was provided to the accusing Party in accordance  with Section 9.2(b)(ii)(A) until the date that a final, binding determination is made pursuant to  Section 12.3; and (y) all of the terms and conditions of this Agreement will remain in effect and  the Parties will continue to perform all of their respective obligations hereunder.  (c) Bankruptcy. Subject to applicable bankruptcy laws, either Party may  terminate this Agreement if the other Party makes a voluntary or involuntary general assignment  of its assets for the benefit of creditors, a petition in bankruptcy is filed by or against the other  Party and is not dismissed in [**], or a receiver or trustee is appointed for all or any part of the  other Party’s property.  9.3 Consequences of Termination.  (a) Generally. All rights and licenses under this Agreement will immediately  terminate upon termination of this Agreement except: (i) the Parties will each use commercially  reasonable efforts to wind down their activities occurring as of the effective date of termination in  accordance with Law; (ii) as set forth in Section 9.3(c); (iii) each Party in its capacity as a  Receiving Party will return to the Disclosing Party or destroy (at the Disclosing Party’s option) all  of the Disclosing Party’s Confidential Information then in the Receiving Party’s possession or  control, except for any copies located in such Receiving Party’s automatic backup files and one  copy of such Confidential Information for legal or regulatory purposes; and (iv) the effects of  termination set forth in this Section 9.3 will apply.  (b) Accrued Obligations. Expiration or termination of this Agreement in its  entirety or with respect to any Licensed Product for any or no reason will not release any Party of  any obligation or liability which, at the time of such expiration or termination, has already accrued  or which is attributable to a period prior to such expiration or termination with respect to this  Agreement in its entirety or with respect to any such Licensed Product, as applicable.  (c) Sell-Off Right. IVERIC, its Affiliates and Sublicensees will have the right  to sell any inventory of any Licensed Product effected by such termination that remains on hand  as of the effective date of the termination, so long as IVERIC pays to DelSiTech the royalties and  other amounts payable hereunder (including milestones) that are applicable to such subsequent  sales in accordance with the terms of this Agreement.  (d) License to IVERIC Improvement IP. IVERIC agrees to grant, and hereby  grants, DelSiTech a royalty-free, non-exclusive, nontransferable (except as set forth in Section  13.3), sublicensable, right and license, under the IVERIC Improvement IP, solely to Develop,  Manufacture or Commercialize products (including making improvements to DelSiTech  Technology) that do not contain the IVERIC Product.   

 

EXECUTION VERSION  CONFIDENTIAL      31      (e) Ancillary Agreements. Unless otherwise agreed in writing by the Parties,  the termination of this Agreement in its entirety will cause the automatic termination of the Clinical  Supply Agreement and the Quality Agreement, to the extent such agreement(s) are in force as of  the termination of this Agreement, subject to any terms within that expressly survive termination,  provided that if any termination of this Agreement is only with respect to a Licensed Product, then  such agreements will terminate only with respect to the terminated Licensed Product(s).  (f) Non-Exclusive Remedy. Unless otherwise expressly set forth herein,  termination of this Agreement by a Party will be without prejudice to other remedies such Party  may have at law or equity.   (g) Survival. All rights and obligations of the Parties that have accrued on or  before the effective date of any expiration or termination of this Agreement will survive any such  expiration or termination. In addition, the following provisions will survive expiration or  termination of this Agreement and continue to be enforceable: Section 2.4, Section 2.6, Section  2.7, Section 2.8, Section 3.3, Section 6.10, Section 6.11, Section 6.12, Section 7.1, Section 7.2(c),  Section 7.3, Section 7.5, Section 9.3, Section 10.3, Article 1, Article 8, Article 11 and Article 12.  Notwithstanding anything to the contrary, except as otherwise set forth in this Section 9.3, any  license granted by DelSiTech to IVERIC or its Affiliates or Sublicensees shall not remain in force  after the expiration or termination of this Agreement.  9.4 Conversion of License to Non-Exclusive. In the event IVERIC does not use, on a  Licensed Product-by-Licensed Product basis, Commercially Reasonable Efforts as set foth in  Section 3.5 or 4.1, as applicable, for a period exceeding [**], DelSiTech may give written notice  therof to IVERIC.  Upon rcceipt of such written notice, IVERIC may restart to make, in its sole  discretion, Commercially Reasonable Efforts as contemplated by Section 3.5 or 4.1, as applicable,   within a period of [**] after receipt of such notice from DelSiTech.  If IVERIC does not restart to  make Commercially Reasonable Efforts within such [**] time period, DelSiTech may give, in its  discretion, and as its sole and exclusive remedy related to a lack of Commercially Reasonable  Efforts, written notice to IVERIC (the “License Conversion Notice”) that the conditions for the  grant of exclusive licenses, as granted to IVERIC under Section 2.2, are no longer met and that  such licenses are converted, as of the date of receipt of the License Conversion Notice, from  exclusive to non-exclusive as to the relevant Licensed Product, in which event the exclusivity  covenant in the first sentence of Section 2.4 will also terminate. For the avoidance of doubt, any  failure of IVERIC to use Commercially Reasonable Efforts shall not be considered a breach of this  Agreement and shall not be a basis for any liability of IVERIC towards DelSiTech.  Any Dispute  regarding IVERIC’s use (or alleged lack of) Commercially Reasonable Efforts shall be resolved  as provided for under Article 12 and neither the conversion of the license in Section 2.2 from an  exclusive to a non-exclusive license nor the termination of the exclusivity covenant in the first  sentence of Section 2.4 shall take effect pending the resolution of any such Dispute.  

 

EXECUTION VERSION  CONFIDENTIAL      32      ARTICLE 10  Representations and Warranties  10.1 Representations, Warranties and Covenants By Both Parties. Each Party hereby  represents and warrants to the other Party, as of the Effective Date, and where expressly stated  covenants to the other Party during the Term, as follows:  (a) such Party is duly organized and validly existing under the laws of the  jurisdiction of its incorporation or continuance, as the case may be, and has full corporate power  and authority to enter into this Agreement and to carry out the provisions hereof;  (b) such Party is duly authorized to execute and deliver this Agreement and to  perform its obligations hereunder, and the individual executing this Agreement on such Party’s  behalf has been duly authorized to do so by all requisite corporate action;  (c) this Agreement is legally binding upon such Party and is enforceable against  such Party in accordance with its terms;  (d) the execution, delivery and performance of this Agreement by such Party  does not conflict with any agreement, instrument or understanding, oral or written, to which it is a  party or by which it may be bound, including such Party’s organizational documents, nor violate  any applicable Law;  (e) such Party has not granted, and hereby covenants that it will not grant during  the Term, any right to any Third Party that would conflict with the rights granted to the other Party  hereunder;  (f) such Party is not aware of any action, suit or inquiry or investigation  instituted by any Person that questions or threatens the validity of this Agreement;  (g) no consent or approval from any Third Party (including any governmental  or administrative body or court) is necessary to consummate this Agreement or, to such Party’s  knowledge, to conduct the activities contemplated hereunder, except for any required INDs or  Regulatory Approvals; and  (h) neither such Party nor any of its Affiliates, nor, to such Party’s knowledge,  any other Person that will be involved in activities under this Agreement has been debarred or is  subject to debarment, and each Party covenants that neither it nor any of its Affiliates will  knowingly use in any capacity, in connection with this Agreement, any Person who has been  debarred pursuant to Section 306 of the United States Federal Food, Drug, and Cosmetic Act, or  who is the subject of a conviction described in such section. Each Party covenants and agrees to  inform the other Party in writing immediately if it or any Person who is performing activities  hereunder is debarred or is the subject of a conviction described in Section 306, or if any action,  suit, claim, investigation or legal or administrative proceeding is pending or is threatened, relating  to the debarment or conviction of it or any Person used in any capacity by it or any of its Affiliates  in connection with this Agreement.  

 

EXECUTION VERSION  CONFIDENTIAL      33      10.2 DelSiTech Representations, Warranties and Covenants. DelSiTech hereby  represents and warrants to IVERIC, as of the Effective Date, and where expressly stated covenants  to IVERIC during the Term, as follows:  (a) DelSiTech is the sole and exclusive owner of the DelSiTech Technology  and all Licensed Technology, all of which is free and clear of any claims, liens, charges, or  encumbrances that would conflict with the rights granted to IVERIC hereunder;   (b) to DelSiTech’s knowledge, (i) it has the full right and authority to grant the  licenses and rights granted to IVERIC under this Agreement, and (ii) DelSiTech has not assigned,  transferred, conveyed or licensed its right, title and interest in the DelSiTech Background IP in  existence as of the Effective Date in any manner inconsistent with such license grant or the other  terms of this Agreement;   (c) to DelSiTech’s knowledge, the use of the DelSiTech Technology in the  performance by DelSiTech of its obligations under this Agreement in connection with any  Licensed Product does not infringe, misappropriate or otherwise violate the intellectual property  rights of any Third Party;   (d) to DelSiTech’s knowledge, Exhibit A1 hereto identifies all Patents  Controlled by DelSiTech as of the Effective Date that are necessary to use the DelSiTech  Technology to Develop, have Developed, Manufacture, have Manufactured, Commercialize or  have Commercialized Licensed Products, as contemplated as of the Effective Date;   (e) no claim, demand, suit, proceeding, arbitration, inquiry, investigation,  litigation, or other legal action of any nature, civil, criminal, regulatory or otherwise, is pending,  has been brought, or to DelSiTech’s knowledge, threatened against DelSiTech or any Affiliate of  DelSiTech, or, to DelSiTech’s knowledge, any Third Party, alleging that the Development,  Manufacture or Commercialization of the DelSiTech Technology is infringing or, if practiced or  commercialized, will infringe the rights of any Third Party, or that DelSiTech’s activities with  respect to the DelSiTech Technology have infringed or misappropriated any of the intellectual  property rights of any Third Party;  (f) there is no judgment or settlement against or owed by DelSiTech or any of  its Affiliates, in each case in connection with the DelSiTech Technology relating to the transaction  contemplated by this Agreement;  (g) to DelSiTech’s knowledge, no Third-Party has challenged or threatened to  challenge the scope, validity or enforceability of the Patents listed in Exhibit A1 (including, by  way of example, through the institution or written threat of institution of interference, nullity or  similar invalidity proceedings before the United States Patent and Trademark Office or any  analogous foreign Governmental Authority);  (h) to DelSiTech’s knowledge: (A) the Patents listed in Exhibit A,1 are, or,  upon issuance, will be, valid and enforceable patents; and (b) as of the Effective Date no Person is  

 

EXECUTION VERSION  CONFIDENTIAL      34      infringing or threatening to infringe, or misappropriating or threatening to misappropriate, the  Patents listed in Exhibit A1 in a manner that would affect IVERIC’s rights under this Agreement;  (i) all of DelSiTech’s Representatives have executed, and DelSiTech  covenants that DelSiTech will ensure that all of DelSiTech’s Representatives performing any  Development hereunder on behalf of DelSiTech will prior to such performance have executed, (i)  valid and enforceable agreements assigning or (ii) have existing obligations under applicable Laws  requiring assignment to DelSiTech of all Inventions made during the course of and as the result of  their association with DelSiTech and obligating the individual to maintain as confidential  DelSiTech’s Confidential Information as well as confidential information of other Persons  (including IVERIC and its Affiliates) which such individual may receive;  (j)  DelSiTech has taken reasonable precautions to preserve the confidentiality  of any Know-How that constitutes DelSiTech’s Background IP existing as of the Effective Date,  including requiring each Person having access to any Know-How within such DelSiTech’s  Background IP to be subject to confidentiality, non-use and non-disclosure obligations protecting  such Know-How as the confidential, proprietary materials and information of DelSiTech;  (k) to DelSiTech’s knowledge, DelSiTech has complied with all applicable  Laws, including any disclosure requirements, in connection with the filing, prosecution, and  maintenance of the Patents listed in Exhibit A1;  (l) no DelSiTech Background IP is subject to any funding agreement with any  Governmental Authority or other Third Party;  (m) neither DelSiTech nor any of its Affiliates are party to or otherwise subject  to any agreement or arrangement that would conflict with IVERIC’s rights or DelSiTech’s  obligations under this Agreement; and  (n) to DelSiTech’s knowledge, the Development, Manufacture and  Commercialization by DelSiTech or IVERIC (or their respective Affiliates or Sublicensees) of  products that use or incorporate the DelSiTech Technology does not infringe any claim of an issued  Patent of any Third Party as of the Effective Date as a result of the use or incorporation of the  DelSiTech Technology.  10.3 Disclaimer. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN  SECTIONS 10.1, 10.2 AND 10.3, NEITHER PARTY MAKES ANY REPRESENTATION NOR  EXTENDS ANY WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, AND  PARTICULARLY THAT PRODUCTS WILL BE SUCCESSFULLY DEVELOPED OR  COMMERCIALIZED HEREUNDER, AND IF PRODUCTS ARE DEVELOPED, WITH  RESPECT TO SUCH PRODUCTS, AND TO THE EXTENT PERMITTED BY LAW, THE  PARTIES EXCLUDE ALL IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT,  MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.  

 

EXECUTION VERSION  CONFIDENTIAL      35      ARTICLE 11  Indemnification, Insurance and Liability  11.1 Indemnification by DelSiTech. DelSiTech will defend, indemnify and hold  harmless IVERIC and its officers, directors, employees, agents, representatives, successor and  assigns (“IVERIC Indemnitee”) from and against any liability or expense (including reasonable  legal expenses, costs of litigation and attorneys’ fees), damages, or judgments, whether for money,  injuctive or other equitable relief (collectively, “Losses”) resulting from suits, proceedings, claims,  actions, demands, or threatened claims, actions or demands, in each case brought by a Third Party  (each, a “Claim”) against an IVERIC Indemnitee arising out of: (a) any grossly negligent act or  omission, fraud, or willful or intentional misconduct by DelSiTech or its Affiliates in the  performance of this Agreement, (b) the failure by DelSiTech to comply with any applicable Law,  or (c) any breach of any representation or warranty or covenant of DelSiTech under this  Agreement, except, in each case ((a) through (c)), to the extent any such Losses result from the  gross negligence, fraud, or willful or intentional misconduct of an IVERIC Indemnitee, as  applicable, or from the breach of any representation or warranty or obligation under this  Agreement by IVERIC.  11.2 Indemnification by IVERIC. IVERIC will defend, indemnify and hold harmless  DelSiTech and its Affiliates, and its and their officers, directors, employees, agents,  representatives, successor and assigns (“DelSiTech Indemnitee”) from and against any and all  Losses resulting from Claims, including bodily, injury, risk of bodily injury, death, property  damage and product liability, against an DelSiTech Indemnitee arising out of or relating to, directly  or indirectly: (a) any grossly negligent act or omission, fraud, or willful or intentional misconduct  by IVERIC or its Affiliates in the performance of this Agreement, (b) the failure by IVERIC to  comply with any applicable Law, (c) any alleged personal injuries or death resulting from, arising  out of or relating to any Clinical Trials or use of any of the Licensed Products, including the  Development or Commercialization of the Licensed Products by or on behalf of IVERIC, its  Affiliates or Sublicensees, or (d) any breach of any representation or warranty or covenant of  IVERIC under this Agreement; except, in each case ((a) through (d)), to the extent any such Losses  result from the gross negligence, fraud, or willful or intentional misconduct of a DelSiTech  Indemnitee, as applicable, or from the breach of any representation or warranty or obligation under  this Agreement by DelSiTech.  11.3 Limitations on Indemnification. The obligations to indemnify, defend, and hold  harmless set forth in Sections 11.1 and 11.2 will be contingent upon the Party seeking  indemnification (the “Indemnitee”): (a) notifying the indemnifying Party of a claim, demand or  suit within [**] after receipt of same; provided, however, that Indemnitee’s failure or delay in  providing such notice will not relieve the indemnifying Party of its indemnification obligation  except to the extent the indemnifying Party is prejudiced thereby; (b) allowing the indemnifying  Party or its insurers the right to assume direction and control of the defense of any such claim,  demand or suit; (c) using its reasonable best efforts to cooperate with the indemnifying Party or its  insurers, at the indemnifying Party’s expense, in the defense of such claim, demand or suit; and  (d) agreeing not to settle or compromise any claim, demand or suit without prior written  authorization of the indemnifying Party. The Indemnitee will have the right to participate in the  

 

EXECUTION VERSION  CONFIDENTIAL      36      defense of any such claim, demand or suit referred to in this Section utilizing attorneys of its  choice, at its own expense, provided, however, that the indemnifying Party will have full authority  and control to handle any such claim, demand or suit.  11.4 Limitation on Liability. TO THE MAXIMUM EXTENT PERMITTED BY  APPLICABLE LAW, in no event will EITHER Party be liable to the other Party for any indirect,  special, incidental, exemplary or consequential damages (including lost profits or lost revenues)  of any kind arising out of or in connection with this Agreement, however caused and on any theory  of liability (whether in contract, tort (including negligence), strict liability or otherwise), even if  such Party was advised or otherwise aware of the likelihood of such damages. The limitations set  forth in this Section 11.4 will not apply with respect to (a) amounts payable to Third Parties  pursuant to a Party’s indemnification obligations under Sections 11.1 and 11.2, as applicable, (b)  breach of Article 8, or (c) fraud or willful or intentional misconduct of a Party. Nothing in this  Section 11.4 will exclude a Party’s liability for death or injury caused by that Party’s negligence,  or fraud or fraudulent misrepresentation.  11.5 Insurance. During the Term and for a period of [**] after termination, each Party  will obtain or maintain, at its sole cost and expense, insurance policies, including product liability  insurance, adequate to cover its obligations hereunder and which are consistent with normal  business practices of prudent companies similarly situated.  ARTICLE 12  Dispute Resolution  12.1 General. The Parties will endeavor to resolve any controversy, claim or dispute  arising out of or relating to this Agreement (each, a “Dispute”) through good faith negotiations. If  the Parties are unable to settle any Dispute through ordinary commercial negotiations, either Party  may, by written notice to the other Party, refer the Dispute to the executive officers of each Party.  Each Party will appoint one executive officer for such negotiations. Notwithstanding anything in  this Article 12, either Party may at any time seek from any court having jurisdiction over the Parties  specific performance and injunctive and other equitable relief as a remedy for any breach or  threatened breach of Article 8.   12.2 Failure of Executive Officers to Resolve Dispute. If the executive officers are  unable to settle a Dispute referred to them under Section 12.1 within [**] of the written notice then  either Party may submit the Dispute to arbitration in accordance with the provisions of Section  12.3.  12.3 Binding Arbitration. All Disputes shall be finally settled under the Rules of  Arbitration of the International Chamber of Commerce (“ICC Rules”). The Emergency Arbitrator  Provisions shall not apply. The seat of the arbitration will be [**].  (a) Language. The language of the arbitration will be English. Any evidence  submitted in the arbitration in a language other than English will be accompanied by a translation  into English.  

 

EXECUTION VERSION  CONFIDENTIAL      37      (b) Arbitrators. There will be one (1) arbitrator; provided that if either Party  requests, the arbitration will be conducted by a panel of three (3) arbitrators. In the case of a sole  arbitrator, the Parties will attempt jointly to select such arbitrator within [**] after submission of  the Request for Arbitration. If the Parties cannot reach an agreement regarding the sole arbitrator  within that time, the ICC Court will appoint the sole arbitrator in accordance with the ICC Rules.  In the case of three (3) arbitrators, each Party will select one arbitrator and the two Party-appointed  arbitrators will select the third arbitrator. If the Party-appointed arbitrators are unable to agree upon  the third arbitrator or if either Party fails to appoint a Party-appointed arbitrator within the time  limits provided, the ICC Court will appoint the remaining arbitrators.  (c) Judgment. Judgment upon the any award rendered by the arbitrators will be  binding on the Parties and may be entered by any court having jurisdiction thereof.  (d) Provisional Measures. Either Party may apply to the arbitrators for interim  measures of protection (including a temporary restraining order or preliminary injunction) until  the arbitration award is rendered or the Dispute is otherwise resolved. Nothing in this Agreement  will prevent either Party from seeking interim measures, including a temporary restraining order  or preliminary injunction, from any court of competent jurisdiction, and any such request will not  be deemed incompatible with the agreement to arbitrate or a waiver of the right to arbitrate.  (e) Award. The arbitrator(s) will issue a reasoned award and will use their best  efforts to do so within [**] following their appointment. The Parties may agree to extend this time  limit or the arbitrator(s) may do so in their discretion. The arbitrator(s) will still have jurisdiction  after expiration of this time limit and failure ailure to adhere to this time limit will not be a basis  for challenging any award or for an objection against the enforcement of any award.   (f) Costs. Each Party will pay its own attorney’s fees, costs, and disbursements,  and will pay an equal share of the fees and costs of the arbitrators during the arbitration; provided,  however, that the arbitrator(s) are authorized (but not required) to include in their award for an  arbitration an allocation of the costs of the arbitration between the Parties, including administrative  fees and expenses, arbitrators’ fees and expenses, and the fees and expenses of legal representation  of the Parties.  (g) Confidentiality. Except to the extent necessary in proceedings to challenge,  recognize or enforce an award or as may be required by applicable Law or stock exchange  regulations, neither Party nor any arbitrator may disclose the existence, content or results of an  arbitration without the prior written consent of both Parties.  ARTICLE 13  Miscellaneous  13.1 Governing Law. This Agreement and any obligations arising out of or in connection  with it will be governed by and interpreted in accordance with the laws of the [**] without regard  to conflict of law principles thereof, and excluding the United National Convention on Contracts  for the International Sales of Goods.   

 

EXECUTION VERSION  CONFIDENTIAL      38      13.2 Compliance with Laws. Each Party will conduct its activities under this Agreement  in accordance with Law. Furthermore, each Party represents, warrants and agrees that it has been  at all times and will continue to be in compliance with all potentially applicable anti-bribery and  anti-corruption laws, including the U.S. Foreign Corrupt Practices Act of 1977. Each party  represents, warrants and agrees that, in connection with this Agreement, no bribes, payments,  kickbacks, gifts, hospitality, donations, loans, or anything of value have been or will be made or  received, offered, promised, or authorized, directly or indirectly, to improperly influence any act  or decision of any person or entity, induce any person or entity to do or omit to do any act in  violation of any person’s or entities’ lawful duties, or secure any improper advantage.   13.3 Assignment of Rights and Obligations.  (a) General Rule. Except as expressly permitted hereby, this Agreement and its  rights or obligations may not be assigned or otherwise transferred by either Party without the prior  written consent of the other Party, which consent will not be unreasonably withheld, conditioned  or delayed.  (b) Assignment in Case of a Change of Control and to Affiliates.  Notwithstanding Section 13.3(a), either Party may, even without the consent of the other Party,  assign and transfer this Agreement and the rights, obligations and interests of such Party (i) in  whole or in part, to any Affiliate, or (ii) in whole, but not in part, to an acquiring entity (or its  Affiliates) in connection with a Change of Control with respect to such Party; provided, however,  that such Party’s rights and obligations under this Agreement will be assumed in writing by its  successor in interest in any such transaction and will not be transferred separate from all or  substantially all of its business assets that are the subject of this Agreement. In any case, the Party  assigning and transferring this Agreement shall inform in writing the other Party of such  assignment and transfer within [**] after the effectiveness of such assignment.  13.4 Further Actions. Each Party agrees to execute, acknowledge and deliver such  further instruments, and to do all such other acts, as may be necessary or appropriate in order to  carry out the purposes and intent of this Agreement.  13.5 Force Majeure. Except with respect to payment of money, no Party will be liable  to the other Party for failure or delay in the performance of any of its obligations under this  Agreement for the time and to the extent such failure or delay is caused by earthquake, riot, civil  commotion, war, terrorist acts, strike, flood, pandemic (including ongoing effects of the COVID- 19 pandemic), supply chain issues or governmental acts or restriction, or other cause that is beyond  the reasonable control of the respective Party (“Force Majeure”). The Party affected by such  Force Majeure will provide the other Party with full particulars thereof as soon as it becomes aware  of the same (including its best estimate of the likely extent and duration of the interference with  its activities), and will use commercially reasonable efforts to overcome the difficulties created  thereby and to resume performance of its obligations as soon as practicable. If the performance of  any such obligation under this Agreement is delayed owing to an event of Force Majeure for any  continuous period of more than [**], the Parties will consult with respect to an equitable solution,  including the possibility of the termination of this Agreement.  

 

EXECUTION VERSION  CONFIDENTIAL      39      13.6 Representation by Legal Counsel. Each Party hereto represents that it has been  represented by legal counsel in connection with this Agreement and acknowledges that it has  participated in the drafting hereof. In interpreting and applying the terms and provisions of this  Agreement, the Parties agree that no presumption will exist or be implied against the Party which  drafted such terms and provisions.   13.7 Notices. All notices that are required or permitted hereunder will be in writing and  sufficient if delivered personally, sent by email, addressed as follows.  If to IVERIC:  IVERIC bio, Inc.  8 Sylvan Way  Parsippany, NJ 07054  Attention: General Counsel  Email: [**]     with a copy to: Wilmer Cutler Pickering Hale and Dorr LLP    60 State Street    Boston, MA 02109    Attention: Sarah Tegan Hogan  Email: sarah.hogan@wilmerhale.com    If to DelSiTech: DelSiTech Ltd.  Itäinen Pitkäkatu 4B  20520 Turku, Finland  Attention: CEO  Email: [**]       or to such other address(es) as the Party to whom notice is to be given may have furnished to the  other Party in writing in accordance herewith. Any such notice will be deemed to have been  given: (a) when delivered if personally delivered on a Business Day (or if delivered or sent on a  non-Business Day, then on the next Business Day); (b) on the Business Day after dispatch if sent  by nationally-recognized overnight courier; or (c) on the fifth (5th) Business Day following the  date of mailing, if sent by mail.    13.8 Entire Agreement. The Parties hereto acknowledge that this Agreement, together  with the Exhibits attached hereto, set forth the entire agreement and understanding of the Parties  hereto as to the subject matter hereof, and supersedes all prior and contemporaneous discussions,  agreements and writings in respect, including the Prior CDA. Notwithstanding the foregoing, the  Parties agree that this Agreement will have no effect on the SA, which will continue in and effect  in accordance with its terms until expiration or termination as set forth therein; provided that  Article 12 of this Agreement shall apply to any dispute under the SA. Except as required by statute,  no terms will be implied (whether by custom, usage or otherwise) into this Agreement.  

 

EXECUTION VERSION  CONFIDENTIAL      40      13.9 Amendment. No amendment, modification or supplement of any provision of this  Agreement, including this provision, will be valid or effective unless made in writing and signed  by a duly authorized officer of each Party.  13.10 Waiver. No provision of this Agreement will be waived by any act, omission or  knowledge of a Party or its agents or employees except by an instrument in writing expressly  waiving such provision and signed by a duly authorized officer of the waiving Party. The waiver  by any of the Parties of any breach of any provision hereof by another Party will not be construed  to be a waiver of any succeeding breach of such provision or a waiver of the provision itself.  13.11 Severability. If any clause or portion thereof in this Agreement is for any reason  held to be invalid, illegal or unenforceable, the same will not affect any other portion of this  Agreement, as it is the intent of the Parties that this Agreement will be construed in such fashion  as to maintain its existence, validity and enforceability to the greatest extent possible. In any such  event, this Agreement will be construed as if such clause of portion thereof had never been  contained in this Agreement, and there will be deemed substituted therefor such provision as will  most nearly carry out the intent of the Parties as expressed in this Agreement to the fullest extent  permitted by applicable Law.  13.12 Interpretation. The captions and headings to this Agreement are for convenience  only, and are to be of no force or effect in construing or interpreting any of the provisions of this  Agreement. Unless specified to the contrary, references to Sections or Exhibits will refer to the  particular Sections or Exhibits of or to this Agreement and references to this Agreement include  all Exhibits hereto. Unless context otherwise clearly requires, whenever used in this Agreement:  (a) the words “include” or “including” will be construed as incorporating, also,  “but not limited to” or “without limitation;”  (b) the word “day,” “quarter” or “year” (and derivatives thereof, e.g.,  “quarterly”) means a calendar day, calendar quarter or calendar year unless otherwise specified  (and “annual” or “annually” refer to a calendar year);  (c) the word “notice” means notice in writing (whether or not specifically  stated) and will include notices, consents, approvals and other written communications  contemplated under this Agreement;  (d) the word “hereof,” “herein,” “hereby” and derivative or similar word refers  to this Agreement (including any Exhibits);  (e) the word “or” has its inclusive meaning identified with the phrase “and/or;”  (f) the words “will” and “shall” have the same obligatory meaning;  (g) provisions that require that a party or the parties hereunder “agree,”  “consent” or “approve” or the like will require that such agreement, consent or approval be specific  and in writing, whether by written agreement, letter, approved minutes or otherwise;  

 

EXECUTION VERSION  CONFIDENTIAL      41      (h) words of any gender include the other gender; and  (I) words using the singular or plural number also include the plural or singular  number, respectively.  13.13 Relationship of the Parties. The Parties agree that the relationship of IVERIC and  DelSiTech established by this Agreement is that of independent contractors. Furthermore, the  Parties agree that this Agreement does not, is not intended to, and will not be construed to, establish  an employment, agency, partnership or any other relationship. Except as may be specifically  provided herein, no Party will have any right, power or authority, nor will they represent  themselves as having any authority to assume, create or incur any expense, liability or obligation,  express or implied, on behalf of any other Party, or otherwise act as an agent for any other Party  for any purpose.  13.14 Third Party Beneficiaries. All rights, benefits and remedies under this Agreement  are solely intended for the benefit of the Parties (including any successor in interest or permitted  assigns), and no Third Party will have any rights whatsoever to (a) enforce any obligation  contained in this Agreement, (b) seek a benefit or remedy for any breach of this Agreement, or (c)  take any other action relating to this Agreement under any legal theory, including actions in  contract, tort (including negligence, gross negligence and strict liability), or as a defense, setoff or  counterclaim to any action or claim brought or made by the Parties.   13.15 Counterparts. This Agreement may be executed in any number of counterparts,  each of which need not contain the signature of more than one Party but all such counterparts taken  together will constitute one and the same agreement. Any signature page delivered by facsimile or  electronic image transmission will be binding to the same extent as an original signature page.  [Signature page follows.]     

 

EXECUTION VERSION  CONFIDENTIAL      42      IN WITNESS WHEREOF, the Parties hereto have executed this Agreement by their duly  authorized representatives as of the dates set forth below.  IVERIC BIO, INC.    DELSITECH LTD    By: /s/ Glenn Sblendorio    By: /s/ Lasse Leino     Name: Glenn Sblendorio    Name: Lasse Leino      Title: CEO      Title: CEO       Date: 6/30/2022     Date: 6/29/2022        Exhibits:   Exhibit A1 – Existing Patents included in the DelSiTech Background IP  Exhibit A2 – Existing Patents included in the IVERIC Background IP  Exhibit B – Clinical Supply Agreementexhibit10

Certain identified information has been excluded from the exhibit because it is both (i) not  material and (ii) is the type of information that the registrant treats as private or confidential.  Double asterisks denote omissions.      LOAN AND SECURITY AGREEMENT   THIS LOAN AND SECURITY AGREEMENT is made and dated as of July 26, 2022, and is  entered into by and among IVERIC BIO, INC., a Delaware corporation (“IVERIC bio”), IVERIC BIO  GENE THERAPY LLC, a Delaware limited liability company, ORION OPHTHALMOLOGY LLC, a  Delaware limited liability company,  each of IVERIC bio’s other Subsidiaries from time to time party hereto  as a borrower (individually or collectively, as the context may require, “Borrower”), HERCULES  CAPITAL, INC., a Maryland corporation (“Hercules”), SILICON VALLEY BANK, a California  corporation (“SVB”), and the several banks and other financial institutions or entities from time to time  parties to this Agreement (each, a “Lender”, and collectively, the “Lenders”) and Hercules, in its capacity  as administrative agent and collateral agent for itself and the Lenders (in such capacity, “Agent”).    RECITALS  A. Borrower has requested the Lenders make available to Borrower up to five tranches of term  loans in an aggregate principal amount of up to Two Hundred Fifty Million Dollars ($250,000,000) (the  "Term Loans"); and   B. The Lenders are willing to make the Term Loans on the terms and conditions set forth in  this Agreement.  AGREEMENT  NOW, THEREFORE, Borrower, Agent and the Lenders agree as follows:  SECTION 1.  DEFINITIONS AND RULES OF CONSTRUCTION  1.1 Unless otherwise defined herein, the following capitalized terms shall have the  following meanings:  “Account Control Agreement(s)” means any agreement entered into by and among Agent,  Borrower and a third-party bank or other institution (including a Securities Intermediary) in which  Borrower maintains a Deposit Account or an account holding Investment Property and which perfects  Agent’s first priority (subject to the Permitted Liens in accordance with the Permitted Senior Revolving  Loan Intercreditor Agreement to the extent such Lien is granted under the Permitted Senior Revolving Loan  Documents and is permitted by the Permitted Senior Revolving Loan Intercreditor Agreement to have  priority over the Liens granted in favor of Agent) security interest in the subject account or accounts.  “ACH Authorization” means the ACH Debit Authorization Agreement in substantially the  form of Exhibit G, which account numbers shall be redacted for security purposes if and when filed publicly  by Borrower.  “Acquisition” means any transaction or series of related transactions (including without  limitation by way of merger or in-licensing arrangement) for the purpose of or resulting, directly or  indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of any business, line of  business or division or other unit of operation of a Person, (b) the acquisition of fifty percent (50%) or more  of the Equity Interests of any Person, whether or not involving a merger,  consolidation or similar transaction  with such other Person, or otherwise causing any Person to become a Subsidiary of Borrower, or (c) the  

 

      acquisition of, or the right to use, develop or sell (in each case, including through licensing), any product,  product line or intellectual property of or from any other Person.  “Acquisition Deferred Payments” means, with respect to an Acquisition, any “earnouts,”  holdbacks, performance based-milestones, royalties, purchase price adjustments, profit sharing  arrangements, deferred purchase money amounts, indemnifications, non-competition agreements, incentive  payments, and other similar payment obligations, and other contingent obligations and agreements consisting  of the adjustment of purchase price or similar adjustments.  “Advance(s)” means a Term Loan Advance.  “Advance Date” means the funding date of any Advance.  “Advance Request” means a request for an Advance submitted by Borrower to Agent in  substantially the form of Exhibit A, which account numbers shall be redacted for security purposes if and  when filed publicly by Borrower.  “Affiliate” means (a) any Person that directly or indirectly controls, is controlled by, or is  under common control with the Person in question, (b) any Person directly or indirectly owning, controlling  or holding with power to vote twenty percent (20%) or more of the outstanding voting securities of another  Person, or (c) any Person twenty percent (20%) or more of whose outstanding voting securities are directly  or indirectly owned, controlled or held by another Person with power to vote such securities.  As used in the  definition of “Affiliate,” the term “control” means the possession, directly or indirectly, of the power to direct  or cause the direction of the management and policies of a Person, whether through ownership of voting  securities, by contract or otherwise.   “Agreement” means this Loan and Security Agreement, as amended, restated, amended and  restated, supplemented or otherwise modified from time to time.  “Amortization Date” means March 1, 2026; provided however, if the Interest Only  Extension Conditions are satisfied, then August 1, 2027; provided, further, that if any such day is not a  Business Day, the Amortization Date shall be the immediately preceding Business Day.  “Anti-Corruption Laws” means all laws, rules, and regulations of any jurisdiction  applicable to Borrower or any of their respective Affiliates from time to time concerning or relating to  bribery or corruption, including without limitation the United States Foreign Corrupt Practices Act of 1977,  as amended, the UK Bribery Act 2010 and other similar legislation in any other jurisdictions.  “Anti-Terrorism Laws” means any laws, rules, regulations or orders relating to terrorism  or money laundering, including without limitation Executive Order No. 13224 (effective September 24,  2001), the USA PATRIOT Act, the laws comprising or implementing the Bank Secrecy Act, and the laws  administered by OFAC.  “Approved Fund” is any (a) Person, investment company, fund, securitization vehicle or  conduit that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial  loans and similar extensions of credit in the ordinary course of its business and that is administered or  managed by (i) a Lender, (ii) an Affiliate of a Lender, or (iii) a Person (other than a natural person) or an  Affiliate of a Person (other than a natural person) that administers or manages a Lender, or (b) any Person  (other than a natural person) which temporarily warehouses loans, or provides financing or securitizations,  in each case, for any Lender or any entity described in the preceding clause (a).  

 

      “Bankruptcy Code” means the federal bankruptcy law of the United States as from time to  time in effect, currently as Title 11 of the United States Code. Section references to current sections of the  Bankruptcy Code shall refer to comparable sections of any revised version thereof if section numbering is  changed.   “Bank Services” means any products, credit services, and/or financial accommodations  previously, now, or hereafter provided to Borrower or any of its Subsidiaries by SVB or any SVB Affiliate,  including, without limitation, any letters of credit, cash management services (including, without limitation,  merchant services, direct deposit of payroll, business credit cards, and check cashing services), interest rate  swap arrangements, and foreign exchange services as any such products or services may be identified in  SVB’s various agreements related thereto (each, a “Bank Services Agreement”).  “Bank Services Agreement” has the meaning specified in the definition of Bank Services.  “Bank Services Cap” means [**] Dollars ($[**]).  “Blocked Person” means any Person:  (a) listed in the annex to, or is otherwise subject to  the provisions of, Executive Order No. 13224, (b) a Person owned or controlled by, or acting for or on behalf  of, any Person that is listed in the annex to, or is otherwise subject to the provisions of, Executive Order No.  13224, (c) a Person with which any Lender is prohibited from dealing or otherwise engaging in any  transaction by any Anti-Terrorism Law, (d) a Person that commits, threatens or conspires to commit or  supports “terrorism” as defined in Executive Order No. 13224, or (e) a Person that is named a “specially  designated national” or “blocked person” on the most current list published by OFAC or other similar list.  “Board” means, with respect to any Person that is a corporation, its board of directors, with  respect to any Person that is a limited liability company, its board of managers, board of members or similar  governing body, and with respect to any other Person that is a legal entity, such Person’s governing body in  accordance with its Organizational Documents.  “Borrower Products” means all products, software, service offerings, technical data or  technology currently being designed, manufactured or sold or that are under clinical investigation or  development by Borrower or any of its Subsidiaries or which Borrower or any of its Subsidiaries intends to  sell, license, or distribute in the future including any products or service offerings under development,  collectively, together with all products, software, service offerings, technical data or technology that have  been sold, licensed or distributed by Borrower since its formation.  “Borrower’s Books” means Borrower’s or any of its Subsidiaries’ books and records  including ledgers, federal, state, local and foreign tax returns, records regarding Borrower’s or its  Subsidiaries’ assets or liabilities, the Collateral, business operations or financial condition, and all computer  programs or storage or any equipment containing such information.  “Business Day” means any day other than Saturday, Sunday and any other day on which  banking institutions in the State of California are closed for business.  “Cash” means all cash, cash equivalents and liquid funds.  “Change in Control” means any (a) reorganization, recapitalization, consolidation or  merger (or similar transaction or series of related transactions) of IVERIC bio, sale or exchange of  outstanding shares (or similar transaction or series of related transactions) of IVERIC bio in which the  holders of IVERIC bio’s outstanding shares immediately before consummation of such transaction or series  of related transactions do not, immediately after consummation of such transaction or series of related  

 

      transactions, retain shares representing more than fifty percent (50%) of the voting power of the surviving  entity of such transaction or series of related transactions (or the parent of such surviving entity if such  surviving entity is wholly owned by such parent), in each case without regard to whether IVERIC bio is the  surviving entity,  (b) IVERIC bio shall cease to own one hundred percent (100%) of the Equity Interests of  any Subsidiary except in connection with a joint venture or strategic alliance permitted by Section 7.6 or a  transaction permitted by Section 7.9, (c) “change of control”, “fundamental change”, “make-whole  fundamental change” or any comparable term under and as defined in any indenture governing any  Permitted Convertible Debt Financing has occurred, or (d) “Change of Control” (or any comparable term)  shall occur under any Permitted Senior Revolving Loan Document.    “Charter” means, with respect to any Person, such Persons incorporation, formation or  equivalent documents, as in effect from time to time.  “Closing Date” means the date of this Agreement.  “Code” means the Internal Revenue Code of 1986, as amended.  “Collateral Claim” means any and all present and future “claims” (used in its broadest  sense, as contemplated by and defined in Section 101(5) of the Bankruptcy Code, but without regard to  whether such claim would be disallowed under the Bankruptcy Code) of a Lender now or hereafter arising  or existing under or relating to this Agreement and related Loan Documents, whether joint, several, or joint  and several, whether fixed or indeterminate, due or not yet due, contingent or non-contingent, matured or  unmatured, liquidated or unliquidated, or disputed or undisputed, whether under a guaranty or a letter of  credit, and whether arising under contract, in tort, by law, or otherwise, any interest or fees thereon  (including interest or fees that accrue after the filing of a petition by or against Borrower under the  Bankruptcy Code, irrespective of whether allowable under the Bankruptcy Code), any costs of Enforcement  Actions, including reasonable attorneys’ fees and costs, and any prepayment or termination premiums.[**]  “Common Stock” means the Common Stock, $0.001 par value per share, of IVERIC bio.    “Contingent Obligation” means, as applied to any Person, any direct or indirect liability,  contingent or otherwise, of that Person with respect to (i) any Indebtedness, lease, dividend, letter of credit  or other obligation of another, including any such obligation directly or indirectly guaranteed, endorsed, co- made or discounted or sold with recourse by that Person, or in respect of which that Person is otherwise  directly or indirectly liable; (ii) any obligations with respect to undrawn letters of credit, corporate credit  cards or merchant services issued for the account of that Person; and (iii) all obligations arising under any  interest rate, currency or commodity swap agreement, interest rate cap agreement, interest rate collar  agreement, or other agreement or arrangement designated to protect a Person against fluctuation in interest  rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent  Obligation” shall not include endorsements for collection or deposit in the ordinary course of business.  The  amount of any Contingent Obligation shall be deemed, without duplication of the primary obligation, to be  an amount equal to the stated or determined amount of the primary obligation in respect of which such  Contingent Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability  in respect thereof as determined by such Person in good faith; provided, however, that such amount shall not  in any event exceed the maximum amount of the obligations under the guarantee or other support  arrangement.  For the avoidance of doubt, no Permitted Bond Hedge Transaction or Permitted Warrant  Transaction will be considered a Contingent Obligation of Borrower.  “Copyright License” means any written agreement granting any right to use any Copyright  or Copyright registration, now owned or hereafter acquired by Borrower or in which Borrower now holds or  hereafter acquires any interest.  

 

      “Copyrights” means all copyrights, whether registered or unregistered, held pursuant to the  laws of the United States of America, any State thereof, or of any other country.  “Default” means any event, circumstance or condition that has occurred or exists that would,  with the passage of time or the requirement that notice be given or both, become an Event of Default.  “Deposit Accounts” means any “deposit accounts,” as such term is defined in the UCC, and  includes any checking account, savings account, or certificate of deposit.  “Disqualified Equity Interests” means any Equity Interests that, by their terms (or by the  terms of any security or other Equity Interests into which they are convertible or for which they are  exchangeable), or upon the happening of any event or condition (a) mature or are mandatorily redeemable  (other than solely for Qualified Equity Interests) pursuant to a sinking fund obligation or otherwise (except  as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence  of a change of control or asset sale event shall be subject to the prior repayment in full of the Secured  Obligations), (b) are redeemable at the option (except as a result of a change of control or asset sale so long  as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be  subject to the prior repayment in full of the Secured Obligations) of the holder thereof (other than solely for  Qualified Equity Interests), in whole or in part, (c) provide for scheduled payments of dividends in cash or  cash equivalents, or (d) are or become convertible into or exchangeable for Indebtedness or any other Equity  Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is one hundred  eighty (180) days after the Term Loan Maturity Date.  “Domestic Subsidiary” means any Subsidiary organized under the laws of the United States  of America, any State thereof, or the District of Columbia.  “Due Diligence Fee” means [**] Dollars ($[**]), which fee has been paid to Agent prior  to the Closing Date, and shall be deemed fully earned on such date regardless of the early termination of  this Agreement.  “Enforcement Action” means, with respect to any Lender and with respect to any Collateral  Claim of such Lender or any item of Collateral in which such Lender has or claims a security interest lien  or right of offset, any action, whether judicial or nonjudicial, to repossess, collect, accelerate, offset, recoup,  give notification to third parties with respect to, sell, dispose of, foreclose upon, give notice of sale,  disposition, or foreclosure with respect to, or obtain equitable or injunctive relief with respect to, such  Collateral Claim or Collateral. The filing, or the joining in the filing, by any Lender of an involuntary  bankruptcy or insolvency proceeding against Borrower also is an Enforcement Action.  “Equity Interests” means, with respect to any Person, the capital stock, partnership or  limited liability company interest, or other equity securities or equity ownership interests of such Person.  “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and  the regulations promulgated thereunder.  “Excluded Account” means any of the following accounts which are designated as such in  writing to Agent as of the Closing Date or, with respect to any account opened after the Closing Date, in the  next Compliance Certificate delivered after such account is opened: (i) accounts used exclusively to maintain  cash collateral subject to a Permitted Lien, (ii) any payroll or benefits account, provided that the aggregate  balance of all such accounts shall not exceed the amount of all payroll or related benefit payments required  to be made in the two next payroll periods, (iii) any zero balance account, and (iv) any other deposit  

 

      accounts, so long as the aggregate amount in all such deposit accounts do not exceed $1,000,000 on any  day.   “Excluded Subsidiaries” means all Foreign Subsidiaries, Foreign Subsidiary Holding  Companies and, prior to the consummation thereof, any Subsidiary created for purposes of merging into a  Foreign Subsidiary, Borrower or an Acquisition target, or acquiring the assets of an Acquisition target (so  long as such Subsidiary becomes a Borrower upon consummation of such merger with an Acquisition target  or acquisition of the assets of an Acquisition target), in each case, in connection with a proposed Permitted  Acquisition; provided that in each of the foregoing cases, the Excluded Subsidiary Condition is satisfied  with respect to such Subsidiary at all times, and in each case as long as no Excluded Subsidiary owns any  Intellectual Property; provided further that, for the avoidance of doubt, an Excluded Subsidiary may license  Intellectual Property on a non-exclusive basis.  “Excluded Subsidiary Condition” means (a) the aggregate revenues (under GAAP) of all  Excluded Subsidiaries does not exceed five percent (5%) of the consolidated revenues (under GAAP) of  Borrower and its Subsidiaries; and (b) value of the total assets of all Excluded Subsidiaries does not exceed  five percent (5%) of the consolidated total assets of Borrower and its Subsidiaries.   “FDA” means the U.S. Food and Drug Administration or any successor thereto.  “FDA Laws” means all applicable statutes, rules, regulations, and orders and Requirements  of Law administered, implemented, enforced or issued by the FDA..  “Federal Health Care Program Laws” means collectively, federal Medicare or federal or  state Medicaid statutes, the exclusion laws (42 U.S.C. § 1320a-7), the civil monetary penalties law (42  U.S.C. § 1320a-7a), all federal and state fraud and abuse laws, including, without limitation, the federal  Anti-Kickback Statute (42 U.S.C. § 1320a-7b), the Physician Payments Sunshine Act (42 U.S.C. § 1320a- 7h), the civil False Claims Act of 1863 (31 U.S.C. § 3729 et seq.), criminal false claims statutes (e.g., 18  U.S.C. §§ 287 and 1001), the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. § 3801 et seq.),  HIPAA, or related regulations or other Requirements of Law applicable to Borrower that directly or  indirectly govern the health care industry, programs of governmental authorities related to healthcare, health  care professionals or other health care participants, or relationships among health care providers, suppliers,  distributors, manufacturers and patients.    “Foreign Subsidiary” means any Subsidiary other than a Domestic Subsidiary.  “Foreign Subsidiary Holding Company” means any Subsidiary the primary assets of which  consist of Equity Interests in (i) one or more Foreign Subsidiaries or (ii) one or more Foreign Subsidiary  Holding Companies.  “GAAP” means generally accepted accounting principles in the United States of America,  as in effect from time to time.    “Hedge Agreement” means any interest rate, currency or commodity swap agreement,  interest rate cap agreement, interest rate collar agreement, fuel or mineral or other commodity hedge or  exchange agreement or any other agreement or arrangement entered into for non-speculative purposes  designated to protect a Person against fluctuation in interest rates currency exchange rates, commodity or  mineral prices.  “Indebtedness” means indebtedness of any kind, including (a) all indebtedness for borrowed  money or the deferred purchase price of property or services (excluding trade credit entered into in the  

 

      ordinary course of business), including reimbursement and other obligations with respect to surety bonds  and letters of credit, (b) all obligations evidenced by notes, bonds, debentures or similar instruments, (c) all  capital lease obligations, (d) all equity securities of any Person subject to repurchase or redemption other  than at the sole option of such Person, (e) “earnouts”, purchase price adjustments, profit sharing  arrangements, deferred purchase money amounts and similar payment obligations or continuing obligations  of any nature arising out of purchase and sale contracts but only in each case of the foregoing as and to the  extent of the amount required to be reflected as a liability on the balance sheet of such Person in accordance  with GAAP, (f) obligations arising under bonus, deferred compensation, incentive compensation or similar  arrangements (other than those arising in the ordinary course of business), (g) non-contingent obligations  to reimburse any bank or Person in respect of amounts paid under a letter of credit, banker’s acceptance or  similar instrument, and (h) all Contingent Obligations.  For the avoidance of doubt, no Permitted Bond  Hedge Transaction or Permitted Warrant Transaction will be considered Indebtedness of Borrower.  “Initial Facility Charge” means Eight Hundred Seventy-Five Thousand Dollars  ($875,000), which is payable to the Lenders in accordance with Section 4.1(f).  “Intellectual Property” means all of Borrower’s Copyrights; Trademarks; Patents; Licenses;  trade secrets and inventions; mask works; Borrower’s applications therefor and reissues, extensions, or  renewals thereof; and Borrower’s goodwill associated with any of the foregoing, together with Borrower’s  rights to sue for past, present and future infringement of Intellectual Property and the goodwill associated  therewith.  “Intellectual Property Security Agreement” means the Intellectual Property Security  Agreement dated as of the Closing Date between Borrower and Agent, as the same may from time to time  be amended, restated, modified or otherwise supplemented.   “Interest Only Extension Conditions” shall mean satisfaction of each of the following  events:  (a) no Default or Event of Default shall have occurred; and (b) the Performance Milestone 3 Date  has occurred.   “Investment” means (a) any beneficial ownership (including stock, partnership, interests,  limited liability company interests, or other securities) of or in any Person, (b) any loan, advance or capital  contribution to any Person or (c) any Acquisition.   “IRS” means the United States Internal Revenue Service.   “Joinder Agreement” means for each Subsidiary (other than each Excluded Subsidiary), a  completed and executed Joinder Agreement in substantially the form attached hereto as Exhibit F.  “License” means any Copyright License, Patent License, Trademark License or other  license of rights or interests.  “Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security,  security interest, encumbrance, levy, lien or charge of any kind, whether voluntarily incurred or arising by  operation of law or otherwise, against any property, any conditional sale or other title retention agreement,  and any lease in the nature of a security interest.  “Loan” means the Advances made under this Agreement.  “Loan Documents” means this Agreement, the promissory notes (if any), the ACH  Authorization, the Account Control Agreements, any Joinder Agreement, all UCC Financing Statements,  

 

      the Permitted Senior Revolving Loan Intercreditor Agreement, the Pledge Agreement, the Intellectual  Property Security Agreement, and any other documents executed in connection with the Secured Obligations  or the transactions contemplated hereby, as the same may from time to time be amended, modified,  supplemented or restated.  “Market Capitalization” means, as of any date of determination,  an amount equal to (a) the  average of the daily volume weighted average price of Borrower’s common stock as reported for each of  the five (5) trading days preceding such date of determination (it being understood that a “trading day” shall  mean a day on which shares of Borrower’s common stock trade on the NASDAQ (or, if the primary listing  of such common stock is on another exchange, on such other exchange) in an ordinary trading session)  multiplied by (b) the total number of issued and outstanding shares of Borrower’s common stock that are  issued and outstanding on the date of the determination and listed on the NASDAQ (or, if the primary  listing of such common stock is on another exchange, on such other exchange), subject to appropriate  adjustment for any stock dividend, stock split, stock combination, reclassification or other similar  transaction during the applicable calculation period.  “Material Adverse Effect” means a material adverse effect upon: (i) the business,  operations, properties, assets or financial condition of Borrower and its Subsidiaries taken as a whole; or  (ii) the ability of the Loan Parties taken as a whole to perform or pay the Secured Obligations in accordance  with the terms of the Loan Documents, or the ability of Agent or the Lenders to enforce any of its rights or  remedies with respect to the Secured Obligations; or (iii) the Collateral or Agent’s Liens on the Collateral or  the priority of such Liens.  “Material Agreement” means (a) each Specified License and (b) any license, agreement or  other contractual arrangement entered into after the Closing Date, the termination of which could be  reasonably expected to result in a Material Adverse Effect, individually or in the aggregate.   “Material Regulatory Liabilities” means (i) any liabilities arising from the violation of  applicable Public Health Laws, Federal Health Care Program Laws, and other applicable comparable  Requirements of Law, or from any requirements imposed relative to any Registrations (including costs of  actions required under applicable Requirements of Law, including FDA Laws and Federal Health Care  Program Laws, or necessary to remedy any violation of any terms or conditions applicable to any  Registrations), including, but not limited to, withdrawal of approval, recall, revocation, suspension, import  detention and seizure of any Borrower Product, and (ii) any loss of recurring annual revenues as a result of  any loss, suspension or limitation of any Registrations, which, in the case of the foregoing clauses (i) and  (ii), could reasonably be expected to result in a Material Adverse Effect.  “Maximum Term Loan Amount” means Two Hundred Fifty Million and No/100 Dollars  ($250,000,000).   “New Drug Application” means an application submitted to the FDA pursuant to 21 U.S.C.  § 355 seeking authorization to market a new drug in the United States.  “Non-Core Intellectual Property” means Borrower’s Intellectual Property with respect to  Borrower’s AAV gene therapy pipeline (IC-100, IC-200 and the minigene programs), IC-500 and any other  Intellectual Property of Borrower not material to Borrower’s business upon prior consultation with Agent.  “Non-Disclosure Agreement” means, collectively, (i) that certain Confidential Disclosure  Agreement by and between Borrower and Hercules dated as of May 26, 2022, and (ii) that certain Mutual  Confidential Disclosure Agreement by and between Borrower and SVB dated as of May 24, 2022.  

 

      “OFAC” means the U.S. Department of Treasury Office of Foreign Assets Control.  “OFAC Lists” means, collectively, the Specially Designated Nationals and Blocked Persons  List maintained by OFAC pursuant to Executive Order No. 13224, 66 Fed. Reg. 49079 (Sept. 25, 2001)  and/or any other list of terrorists or other restricted Persons maintained pursuant to any of the rules and  regulations of OFAC or pursuant to any other applicable Executive Orders.  “Organizational Documents” means with respect to any Person, such Person’s Charter, and  (a) if such Person is a corporation, its bylaws, (b) if such Person is a limited liability company, its limited  liability company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership  agreement (or similar agreement), each of the foregoing with all current amendments or modifications  thereto.   “Patent License” means any written agreement granting any right with respect to any  invention on which a Patent is in existence or a Patent application is pending, in which agreement Borrower  now holds or hereafter acquires any interest.  “Patents” means all letters patent of, or rights corresponding thereto, in the United States of  America or in any other country, all registrations and recordings thereof, and all applications for letters patent  of, or rights corresponding thereto, in the United States of America or any other country.  “Perfection Certificate” means a completed certificate entitled “Perfection Certificate”  delivered by Borrower to Agent and the Lenders on the Closing Date, signed by Borrower.   “Performance Milestone 1” means satisfaction of each of the following events prior to  December 15, 2022: (a) Borrower shall have announced that the GATHER2 Phase 3 trial of Zimura in  patients with geographic atrophy (NCT04435366) has achieved its protocol-specified primary endpoint, (b)  an acceptable safety profile has been demonstrated with respect to Zimura, such that along with the results  of the GATHER1 (NCT02686658) study Borrower shall, in its reasonable business judgment, have a  sufficient clinical data package to support the filing of a New Drug Application with the FDA as the next  immediate step in development (subject to Lenders’ reasonable verification), and (c) no Default or Event of  Default shall have occurred.  “Performance Milestone 1 Date” means the date on which Borrower achieves Performance  Milestone 1.  “Performance Milestone 2” means satisfaction of each of the following events prior to  September 30, 2023: (a) Performance Milestone 1 Date has occurred, (b) Borrower has filed a New Drug  Application with the FDA for Zimura for the treatment of geographic atrophy and the FDA has accepted  such New Drug Application for review, in each case under this clause (b), subject to Lenders’ reasonable  verification and (c) no Default or Event of Default shall have occurred.   “Performance Milestone 2 Date” means the date on which Borrower achieves Performance  Milestone 2.  “Performance Milestone 3” means the satisfaction of each of the following events prior to  September 30, 2024: (a) Performance Milestone 2 Date has occurred, (b) the FDA has approved the New  Drug Application for Zimura for the treatment of geographic atrophy with a label generally consistent with  that sought in Borrower’s filing of such New Drug Application and which continues to support the planned  commercialization strategy and outlook, in each case under this clause (b), subject to Lenders’ reasonable  verification and (c) no Default or Event of Default shall have occurred.  

 

      “Performance Milestone 3 Date” means the date on which Borrower achieves Performance  Milestone 3.  “Permitted Acquisition” means any Acquisition which is conducted in accordance with the  following requirements:   (a) such Acquisition is of a business or Person engaged in a line of business  substantially related to that of Borrower or its Subsidiaries;  (b) if such Acquisition is structured as a stock acquisition, then the Person so acquired  shall either (i) become a wholly-owned (other than issuance of shares necessary under local law for  the qualification of directors) Subsidiary of Borrower or of a Subsidiary and Borrower shall  comply, or cause such Subsidiary to comply, with Section 7.13 hereof or (ii) such Person shall be  merged with and into Borrower (with Borrower being the surviving entity);  (c) if such Acquisition is structured as the acquisition of assets, such assets shall be  acquired by a Borrower, and shall be free and clear of Liens other than Permitted Liens;  (d) Borrower shall have delivered to Lenders not less than fifteen (15) (or such shorter  period as Agent may agree in its sole discretion) nor more than forty-five (45) days prior to the  closing date of such Acquisition, notice of such Acquisition together with pro forma projected  financial information, copies of all material documents relating to such Acquisition reasonably  requested by Agent, and historical financial statements for such acquired entity (to the extent  available), division or line of business (to the extent applicable), in each case in form reasonably  satisfactory to Agent and demonstrating compliance with the covenants set forth in Section 7.18  hereof on a pro forma basis as if the Acquisition occurred on the first day of the most recent  measurement period, if such covenants are then in effect;  (e) both immediately before and after such Acquisition no Default or Event of Default  shall have occurred and be continuing; and  (f) the sum of the purchase price of such proposed new Acquisition, computed on the  basis of total acquisition consideration paid in cash, or to be paid in cash, by Borrower with respect  thereto, including  any unpaid Acquisition Deferred Payments, except to the extent such  Acquisition Deferred Payment is not required to be reflected as a liability on the balance sheet of  Borrower in accordance with GAAP, and including the amount of Permitted Indebtedness assumed  or to which such assets are subject, shall not be greater than (i) with respect to the period prior to  the Performance Milestone 1 Date, $20,000,000 in the aggregate for all Acquisitions consummated  during such period, (ii) for the period prior to the Performance Milestone 3 Date, $40,000,000 in  the aggregate for all Acquisitions consummated during such period and (iii) with respect to the  period on or after the Performance Milestone 3 Date, $50,000,000 in the aggregate for all such  Acquisitions consummated after the Closing Date; provided, that the amounts set forth in clauses  (i) through (iii) above shall be increased by an amount equal to (A) ten percent (10%) of any  Qualified Equity Issuance Net Proceeds received by Borrower after the Closing Date, (B) ten  percent (10%) of unrestricted cash received by Borrower in connection with any Permitted Transfer  under clause (ii) of the definition thereof, and (C) ten percent (10%) of unrestricted cash received  by Borrower in connection with any Permitted Transfer under clause (iii) of the definition thereof.  “Permitted Bond Hedge Transaction” means any call or capped call option (or  substantively equivalent derivative transaction) relating to Borrower’s common stock (or other securities  

 

      or property following a merger event or other change of the common stock of Borrower) purchased by  Borrower in connection with the issuance of any Permitted Convertible Debt Financing.  “Permitted Convertible Debt Financing” means issuance by IVERIC bio of convertible  notes in an aggregate principal amount of not more than Four Hundred Million Dollars ($400,000,000);  provided that (a) both immediately prior to and after giving effect (including pro forma effect) thereto, no  Default or Event of Default shall exist or result therefrom, (b) such convertible notes shall (i) have no  scheduled amortization or principal payments and not require any mandatory redemptions or payments of  principal prior to the date that is one hundred eighty (180) days after the Term Loan Maturity Date, other  than customary payments upon a “change of control”, “fundamental change”, “make-whole fundamental  change” or any comparable term (it being understood that a holder’s option to convert any such convertible  notes shall not be considered a mandatory redemption or payment of principal), (ii) be unsecured, (iii) not  be guaranteed by any Subsidiary of IVERIC bio that is not a Borrower or a guarantor of the obligations of  Borrower under the Loan Documents, (iv) be on terms and conditions customary for underwritten offerings  of Indebtedness of such type, and (v) be Indebtedness of IVERIC bio and (except through guarantees  permitted by clause (iii) above) not any Subsidiary thereof. For the avoidance of doubt, Permitted  Convertible Debt Financing shall not constitute Subordinated Indebtedness.   “Permitted Indebtedness” means:  (i) Indebtedness of Borrower in favor of any Lender or Agent arising under this  Agreement or any other Loan Document;   (ii) Indebtedness existing on the Closing Date which is disclosed in Schedule 1A;   (iii) Indebtedness of up to $[**] outstanding at any time secured by a Lien described  in clause (vii) of the defined term “Permitted Liens,” provided such Indebtedness does not exceed  the cost of the Equipment and related software or other intellectual property financed with such  Indebtedness;   (iv) Indebtedness incurred in the ordinary course of business with corporate credit  cards in an amount not to exceed $[**] at any time outstanding;   (v) Indebtedness that also constitutes a Permitted Investment;   (vi) Subordinated Indebtedness;   (vii) reimbursement obligations (other than reimbursement obligations constituting  Bank Services) in connection with (A) letters of credit, (B) foreign exchange services, ACH  Services, and cash management services (including credit cards, debit cards and similar  instruments) and (C) Hedge Agreements (entered into in order to manage existing or anticipated  interest rate, exchange rate or commodity price risks and not for speculative purposes), in each case  that are unsecured or secured by Cash and issued on behalf of Borrower or a Subsidiary thereof in  an aggregate amount not to exceed $[**] at any time outstanding;   (viii) Indebtedness incurred in connection with the provision by SVB to Borrower of  Bank Services in an amount not to exceed the Bank Services Cap;  (ix) other unsecured Indebtedness in an amount not to exceed $[**] at any time  outstanding;   

 

      (x) intercompany Indebtedness as long as either (A) each of the Subsidiary obligor  and the Subsidiary obligee under such Indebtedness is a Subsidiary that has executed a Joinder  Agreement or (B) it is Indebtedness of an Excluded Subsidiary resulting from a Permitted  Investment in accordance with clause (x) of the defined term “Permitted Investments”;   (xi) Permitted Convertible Debt Financing;  (xii) after the Performance Milestone 3 Date, Indebtedness of Borrower incurred under  the Permitted Senior Revolving Loan Credit Documents (“Permitted Senior Revolving Loan  Indebtedness”) which satisfies the following requirements: (w) the incurrence of such Indebtedness  shall have been consented to by the Lenders in their sole respective discretion, (x) the aggregate  outstanding principal amount of such Indebtedness shall not exceed Fifty Million Dollars  ($50,000,000) at any time outstanding (plus all accrued interest, fees and expenses related thereto)  and shall be subject to a borrowing base backed by Receivables or any other assets of Borrower as  may be agreed by such lenders, with a formula for and definition of such borrowing base to be agreed  by the Lenders), (y) no Subsidiary that is not a Borrower shall guarantee, be a borrower with respect  to, or provide a Lien with respect to, such Indebtedness, and (z) such Indebtedness shall at all times  be subject to the Permitted Senior Revolving Loan Intercreditor Agreement in connection with  which (A) the Permitted Senior Revolving Loan Lender shall be permitted to maintain its first  priority security interest (subject to Permitted Liens) in the Collateral, (B) Agent shall be granted a  second priority security interest (subject to Permitted Liens) in the Collateral, (C); provided, that,  for the avoidance of doubt, the security interests and the relative rights and remedies therein of the  Permitted Senior Revolving Loan Lender, on the one hand, and Agent, on the other hand, shall be  as set forth in, and subject to the terms and conditions of, and any discrepancies with respect thereto  between this Agreement and the Permitted Senior Revolving Loan Intercreditor Agreement shall be  resolved in favor of, the Permitted Senior Revolving Loan Intercreditor Agreement;   (xiii) Indebtedness with respect to a Permitted Royalty Transaction that (a) is  subordinated to the Secured Obligations pursuant to a subordination or intercreditor agreement on  terms and conditions satisfactory to Agent, (b) is made available pursuant to a royalty agreement on  terms and conditions satisfactory to Agent and (c) does not have a scheduled maturity date earlier  than one hundred eighty (180) days after the Term Loan Maturity Date;   (xiv) Indebtedness in respect of Acquisition Deferred Payments incurred in  connection with Permitted Acquisitions;  (xv) Indebtedness incurred as a result of endorsing negotiable instruments received  in the ordinary course of business;  (xvi) Indebtedness in respect of surety bonds and other indemnities and similar  obligations up to an aggregate amount of $[**] at any one time outstanding;  (xvii) Indebtedness incurred to finance insurance premiums in the ordinary course of  business; and  (xviii) extensions, refinancings and renewals of any items of Permitted  Indebtedness, provided that the principal amount is not increased or the terms modified to impose  materially more burdensome terms upon Borrower or its Subsidiary, as the case may be.  “Permitted Investment” means:   

 

      (i) Investments existing on the Closing Date which are disclosed in Schedule 1B;  (ii) (a) marketable direct obligations issued or unconditionally guaranteed by the  United States of America or any agency or any State thereof maturing within one year from the date  of acquisition thereof currently having a rating of at least A-2 or P-2 from either Standard & Poor’s  Corporation or Moody’s Investors Service, (b) commercial paper maturing no more than one year  from the date of creation thereof and currently having a rating of at least A-2 or P-2 from either  Standard & Poor’s Corporation or Moody’s Investors Service, (c) certificates of deposit issued by  any bank with assets of at least $500,000,000 maturing no more than one year from the date of  investment therein, (d) money market accounts, and (e) Investments permitted by Borrower’s  investment policy as provided to Agent and Lenders, as amended from time to time; provided that  any material amendments thereto have been approved in writing by Agent and the Lenders in their  reasonable discretion;   (iii) repurchases of stock from former employees, directors, or consultants of  Borrower under the terms of applicable repurchase agreements at the original issuance price of such  securities (1) in an aggregate amount not to exceed $[**] in any fiscal year, provided that no Event  of Default has occurred, is continuing or would exist after giving effect to the repurchases or (2) in  any amount where the consideration for the repurchase is the cancellation of indebtedness owed by  such former employees, officers, directors or consultants to Borrower;   (iv) Investments accepted in connection with Permitted Transfers;   (v) Investments (including debt obligations) received in connection with the  bankruptcy or reorganization of customers or suppliers and in settlement of delinquent obligations  of, and other disputes with, customers or suppliers arising in the ordinary course of Borrower’s  business;   (vi) Investments consisting of notes receivable of, or prepaid royalties and other credit  extensions, to customers and suppliers who are not Affiliates, in the ordinary course of business,  provided that this subparagraph (vi) shall not apply to Investments of Borrower in any Subsidiary;   (vii) Investments consisting of loans not involving the net transfer on a substantially  contemporaneous basis of cash proceeds to employees, officers or directors relating to the purchase  of capital stock of Borrower pursuant to employee stock purchase plans or other similar agreements  approved by Borrower’s Board;   (viii) Investments consisting of travel advances and employee loans in the ordinary  course of business;   (ix) Investments in newly-formed Subsidiaries, provided that each such Subsidiary  enters into a Joinder Agreement after its formation in accordance with Section 7.13 and executes  such other documents as shall be reasonably requested by Agent;   (x) Investments in Excluded Subsidiaries (including newly-formed Excluded  Subsidiaries) not to exceed $[**] in the aggregate in any fiscal year, and other amounts approved  in advance in writing by Agent;   (xi) joint ventures or strategic alliances related to the development or  commercialization of technology or the providing of technical support, in each case, on terms and  

 

      conditions customary for such arrangements; provided that any cash Investments by Borrower do  not exceed $[**] in the aggregate in any fiscal year;   (xii) Investments constituting Permitted Acquisitions;  (xiii) Borrower’s entry into (including payments of premiums in connection therewith),  and the performance of obligations under, any Permitted Bond Hedge Transactions and Permitted  Warrant Transactions in accordance with their terms; and   (xiv) additional Investments that do not exceed $[**] in the aggregate.  “Permitted Liens” means:  (i) Liens in favor of Agent or the Lenders;   (ii) Liens existing on the Closing Date which are disclosed in Schedule 1C;   (iii) Liens for taxes, fees, assessments or other governmental charges or levies, either  not yet due or being contested in good faith by appropriate proceedings diligently conducted;  provided, that Borrower maintains adequate reserves therefor on Borrower’s Books in accordance  with GAAP;   (iv) Liens securing claims or demands of materialmen, artisans, mechanics, carriers,  warehousemen, landlords and other like Persons arising in the ordinary course of Borrower’s  business and imposed without action of such parties; provided, that the payment thereof is not yet  delinquent or remain payable without penalty, or that are being contested in good faith and by  appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the  property subject thereto;  (v) Liens arising from judgments, decrees or attachments in circumstances which do  not constitute an Event of Default hereunder;   (vi) the following deposits, to the extent made in the ordinary course of business:   deposits under worker’s compensation, unemployment insurance, social security and other similar  laws, or to secure the performance of bids, tenders or contracts (other than for the repayment of  borrowed money) or to secure indemnity, performance or other similar bonds for the performance  of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure statutory  obligations (other than Liens arising under ERISA or environmental Liens) or surety or appeal  bonds, or to secure indemnity, performance or other similar bonds;   (vii) Liens on Equipment or software or other intellectual property constituting  purchase money Liens and Liens in connection with capital leases securing Indebtedness permitted  in clause (iii) of “Permitted Indebtedness”;    (viii) Liens incurred in connection with Subordinated Indebtedness;  (ix) leasehold interests in leases or subleases and licenses or sublicenses granted in  the ordinary course of business and not interfering in any material respect with the business of the  licensor;   

 

      (x) Liens in favor of customs and revenue authorities arising as a matter of law to  secure payment of custom duties that are promptly paid on or before the date they become due;   (xi) Liens on insurance proceeds securing the payment of financed insurance  premiums that are promptly paid on or before the date they become due (provided that such Liens  extend only to such insurance proceeds and not to any other property or assets);   (xii) statutory and common law rights of set-off and other similar rights as to deposits  of cash and securities in favor of banks, other depository institutions and brokerage firms or  securities intermediaries;   (xiii) easements, zoning restrictions, rights-of-way and similar encumbrances on real  property imposed by law or arising in the ordinary course of business so long as they do not  materially impair the value or marketability of the related property;   (xiv) (A) Liens on Cash securing obligations permitted under clause (vii) of the  definition of Permitted Indebtedness and (B) security deposits in connection with real property  leases, the combination of (A) and (B) in an aggregate amount not to exceed $[**] at any time;  (xv) Liens pursuant to a Permitted Royalty Transaction and proceeds thereon that (a)  are subordinated to the Secured Obligations pursuant to a subordination or intercreditor agreement  on terms and conditions satisfactory to Agent and (b) do not, other than to the extent of a  subordinated lien, interfere with the Lenders’ first lien on the Collateral;   (xvi) first priority Liens (subject to Permitted Liens) of the Permitted Senior Revolving  Loan Lender in the Collateral, securing only the Permitted Senior Revolving Loan Indebtedness,  subject to compliance with the terms and provisions of clause (xi) of “Permitted Indebtedness”;  (xvii) Liens solely on any Cash earnest money deposits made by Borrower or any of its  Subsidiaries in connection with any letter of intent or purchase agreement that constitutes a Permitted  Acquisition in an aggregate amount not to exceed [**] percent ([**]%) of the aggregate purchase  consideration paid in connection thereto;  (xviii) Licenses that qualify as Permitted Transfers; and  (xix) Liens incurred in connection with the extension, renewal or refinancing of any  Indebtedness secured by Permitted Liens; provided, that any extension, renewal or replacement Lien  shall be limited to the property encumbered by the existing Lien and the principal amount of the  Indebtedness being extended, renewed or refinanced (as may have been reduced by any payment  thereon) does not increase.   “Permitted Royalty Transaction” means any royalty interest transaction related to  Borrower’s  product  candidates  pursuant  to  which  Borrower would receive upfront unrestricted cash in  exchange for a promise to pay future royalties on net sales.  “Permitted Senior Revolving Loan Credit Agreement” means any credit agreement, loan  and security agreement or similar agreement by and among Borrower and the Permitted Senior Revolving  Loan Lender, time subject to the terms and provisions of Permitted Senior Revolving Loan Intercreditor  Agreement as may be amended, restated, modified or otherwise supplemented from time to time subject to  the terms and provisions of Permitted Senior Revolving Loan Intercreditor Agreement.  

 

      “Permitted Senior Revolving Loan Documents” means the Permitted Senior Revolving  Loan Credit Agreement, and each agreement, instrument and document entered into by Borrower or any  Subsidiary in connection with the Permitted Senior Revolving Indebtedness, in each case as may be  amended, restated, modified or otherwise supplemented from time to time subject to the terms and provisions  of Permitted Senior Revolving Loan Intercreditor Agreement.   “Permitted Senior Revolving Loan Indebtedness” has the meaning set forth in clause (xii)  of the defined term “Permitted Indebtedness”.  “Permitted Senior Revolving Loan Intercreditor Agreement” means that certain  Intercreditor Agreement, by and among Agent, the Permitted Senior Revolving Loan Lender and the Loan  Parties subject to compliance with the terms and provisions of clause (xii) of “Permitted Indebtedness”.  “Permitted Senior Revolving Loan Lender” means, so long as it is the lender party to that  certain Intercreditor Agreement, SVB or its designee, together with its and their successors and assigns in  such capacity, in each case subject to compliance with the terms and provisions of clause (xii) of “Permitted  Indebtedness”.   “Permitted Transfers” means:   (i) sales of Inventory in the ordinary course of business;   (ii) licenses and similar arrangements for the use of Intellectual Property in the  ordinary course of business and  on an arms’ length basis, including in connection with business  development and commercialization transactions, co-development or co-promotion transactions,  manufacturing and distribution arrangements, collaborations, licensing, partnering or similar  transactions with third parties and that are entered into with commercially reasonable terms, that  could not result in a legal transfer of title of the licensed property that are (a) non-exclusive or (b)  exclusive in respects other than territory or (c) exclusive as to territory but only (1) as to discrete  geographical areas outside of the United States of America in the ordinary course of business or (2)  for Non-Core Intellectual Property, non-core immaterial specific indications, co-commercialization  and co-promotion transactions or manufacturing and distribution arrangements;   (iii) other Transfers of Non-Core Intellectual Property;  (iv) dispositions of worn-out, obsolete or surplus Equipment at fair market value in  the ordinary course of business;  (v) use of Cash in the ordinary course of business to the extent not prohibited  pursuant to the terms of the Loan Documents;  (vi) to the extent constituting Transfers, the making of Permitted Investments and the  granting of Permitting Liens;  (vii) Permitted Royalty Transactions;  (viii) subject to satisfaction of the Redemption Conditions, the disposition of any  Permitted Convertible Debt Financing, any Hedge Agreement or in connection with any Permitted  Bond Hedge Transaction or Permitted Warrant Transaction, in each case, as permitted hereunder;  (ix) sale of stock or other shares in the ordinary course of business;  

 

      (x) Transfers among Borrower or by a Subsidiary that is not a Borrower to a  Borrower; and  (xi) other Transfers of assets having a fair market value of not more than $[**] in the  aggregate in any fiscal year.  “Permitted Warrant Transaction” means any call option, warrant or right to purchase (or  substantively equivalent derivative transaction) relating to Common Stock (or other securities or property  following a merger event or other change of the Common Stock) and/or cash (in an amount determined by  reference to the price of such Common Stock) sold by Borrower substantially concurrently with any purchase  by Borrower of a related Permitted Bond Hedge Transaction and as may be amended in accordance with its  terms; provided that (x) that the terms, conditions and covenants of each such call option transaction are  customary for agreements of such type, as determined in good faith by the board of directors of Borrower or  a committee thereof and (y) such call option transaction would be classified as an equity instrument in  accordance with GAAP. “Person” means any individual, sole proprietorship, partnership, joint venture, trust,  unincorporated organization, association, corporation, limited liability company, institution, other entity or  government.  “Pledge Agreement” means the Pledge Agreement dated as of the Closing Date between  Borrower and Agent, as the same may from time to time be amended, restated, modified or otherwise  supplemented.  “Prepayment Charge” means, with respect to each Advance, an amount equal to the product  of (a) the outstanding principal amount of such Advance being repaid pursuant to Section 2.4 multiplied by  (b) (i) if the principal amount of such Advance amounts are prepaid on or prior to the date which is twelve  (12) months following the Closing Date, 2.00%; (ii) if the principal amount of such Advance amounts are  prepaid after the date which is twelve (12) months following the Closing Date but on or prior to the date  which is twenty-four (24) months following the Closing Date, 1.50%; (iii) if the principal amount of such  Advance amounts are prepaid after the date which is twenty-four (24) months following the Closing Date  but on or prior to the date which is thirty-six (36) months following the Closing Date, 0.75%; and (iv)  thereafter through the Term Loan Maturity Date, zero percent (0.00%).  “Prime Rate” means the lesser of (a) the prime rate as reporting in the Wall Street Journal  and (b) six and one-quarter percent (6.25%).   “Public Health Laws” means all Requirements of Law relating to the procurement,  development, clinical and non-clinical evaluation, product approval or licensure, manufacture, production,  analysis, distribution, dispensing, importation, exportation, use, handling, quality, sale, labeling, promotion,  clinical trial registration or post market requirements of any drug product (including, without limitation,  any ingredient or component of the foregoing products) subject to regulation under the Federal Food, Drug,  and Cosmetic Act (21 U.S.C. § 301 et seq.) and the Public Health Service Act (42 U.S.C. § 282(j)),  including without limitation all applicable regulations promulgated by the FDA at Title 21 of the Code of  Federal Regulations and all applicable regulations promulgated by the National Institutes of Health (“NIH”)  and codified at Title 42, Part 11 of the Code of Federal Regulations.  “Qualified Cash” means an amount equal to the amount of Borrower’s Cash held in  accounts subject to an Account Control Agreement in favor of Agent.  “Qualified Equity Interests” means any Equity Interests that are not Disqualified Equity  Interests.  

 

      “Qualified Equity Issuance Net Proceeds” means the net proceeds in Cash (excluding any  conversion of existing notes, share repurchases, or other holdbacks or discounts) received by IVERIC bio  as consideration for any (a) public or private sale or issuance of any Qualified Equity Interests of IVERIC  bio, (b) contribution to the equity capital of IVERIC bio (other than in exchange for Disqualified Equity  Interests) or (c) Permitted Convertible Debt Financing; provided that the amount of Cash received by  IVERIC bio is, in the case of clauses (a) through (c) above, measured at the time made and without  adjustment for subsequent changes in value, payable for the fair market value of sale, issuance or  contribution and any other property received in connection with such sale, issuance or contribution, and  paid by any Person that is not a Loan Party or an Affiliate thereof.  “Receivables” means (i) all of Borrower’s Accounts, Instruments, Documents, Chattel  Paper, Supporting Obligations, letters of credit, proceeds of any letter of credit, and Letter of Credit Rights,  and (ii) all customer lists, software, and business records related thereto.  “Redemption Conditions” means, with respect to any redemption, payment, dividend or  distribution by Borrower utilizing the Redemption Conditions, satisfaction of each of the following events:  (a) no default or Event of Default shall exist or result therefrom, and (b) both immediately before and at all  times after such redemption, payment, dividend or distribution, Borrower’s Qualified Cash shall be no less  than [**]% of the outstanding principal amount of the Secured Obligations.  “Register” has the meaning specified in Section 11.7.  “Regulatory Action” means an administrative or regulatory enforcement action,  proceeding or investigation, warning letter, untitled letter, Form 483 or similar inspectional observations,  other notice of violation letter, recall, seizure, Section 305 notice or other similar written communication,  or consent decree, issued or required by the FDA or under the Public Health Laws, the NIH or a comparable  governmental authority in any other regulatory jurisdiction.  “Required Lenders” means (a) for so long as all of the Persons that are Lenders on the  Closing Date (each, an “Original Lender”) have not assigned or transferred any of their interests in the Term  Loan Advances or Term Commitments, Lenders holding one hundred percent (100%) of the aggregate  unpaid principal amount of the Term Loan Advances and the Term Loan Commitments then outstanding  and (b) at any time from and after any Original Lender has assigned or transferred any interest in its Term  Loan Advances or Term Commitments, the Lenders holding more than 50% of the sum of the aggregate  unpaid principal amount of the Term Loan Advances and the Term Commitments then outstanding and, in  respect of this clause (b), (i) each Original Lender that has not assigned or transferred any portion of the  Term Loan Advances or Term Commitments, and (ii) each assignee or transferee of an Original Lender’s  interest in the Term Loan Advances or the Term Commitments, but only to the extent that such assignee is  an Affiliate or Approved Fund of such Original Lender.  “Restricted License” means any material License or other agreement with respect to which  Borrower is the licensee (a) that prohibits or otherwise restricts Borrower from granting a security interest  in Borrower’s interest in such License or agreement or any other property, or (b) for which a default under  or termination of could interfere with Agent’s right to sell any Collateral.  “Requirements of Law” means, with respect to any Person, collectively, the common law  and all federal, state, provincial, local, foreign, multinational or international laws, statutes, codes, treaties,  standards, rules and regulations,  ordinances, orders, judgments, writs, injunctions, decrees (including  administrative or judicial precedents or authorities), in each case that are applicable to and binding upon such  Person or any of its property or to which such Person or any of its property is subject.  

 

      “Sanctioned Country” means, at any time, a country or territory which is the subject or target  of any Sanctions.  “Sanctioned Person” means, at any time, (a) any Person listed in any Sanctions-related list  of designated Persons maintained by the Office of Foreign Assets Control of the U.S. Department of the  Treasury or the U.S. Department of State, or by the United Nations Security Council, the European Union  or any EU member state, (b) any Person operating, organized or resident in a Sanctioned Country or (c) any  Person controlled by any such Person.  “Sanctions” means economic or financial sanctions or trade embargoes imposed,  administered or enforced from time to time by (a) the U.S. government, including those administered by the  Office of Foreign Assets Control of the U.S. Department of the Treasury or the U.S. Department of State, or  (b) the United Nations Security Council, the European Union or Her Majesty’s Treasury of the United  Kingdom.  “Secured Obligations” means Borrower’s obligations under this Agreement and any Loan  Document, including any obligation to pay any amount now owing or later arising, but excluding any  obligations under Section 8.1 or otherwise in respect of any Subsequent Financing.  “Specified License” means that certain License Agreement, dated as of September 12,  2011, between Borrower and Archemix Corp., as amended or otherwise modified from time to time in  accordance with this Agreement.  “Subordinated Indebtedness” means Indebtedness subordinated to the Secured Obligations  in amounts and on terms and conditions satisfactory to Agent in its reasonable discretion and subject to a  subordination agreement in form and substance satisfactory to Agent in its sole discretion.  “Subsequent Financing” means the closing of any Borrower equity financing in which  Borrower receives net cash proceeds of $75,000,000 in any one financing or series of related financings from  the sale and issuance of its Equity Interest for Cash primary for capital raising purposes and that is broadly  marketed to multiple investors after the Closing Date, which shall not include any Permitted Convertible  Debt Financing (or any Permitted Bond Hedge Transaction or Permitted Warrant Transaction) or any  issuance or sale by Borrower of its Equity Interests (i) pursuant to benefit plans or arrangements, including  under Borrower’s equity incentive plans (whether currently in effect or adopted by Borrower after the  Closing Date) or otherwise as equity compensation, (ii) as dividends or distributions or upon stock splits,  recapitalizations or similar transactions, (iii) pursuant to a merger, consolidation, acquisition, strategic  alliance or similar business combination or acquisition, (iv) to banks, funds, equipment or real property  lessors or other financial institutions pursuant to a non-convertible debt financing, equipment lease, loan or  credit arrangement or commercial leasing transaction entered into for primarily non-equity financing  purposes, (v) in connection with strategic transactions, including (A) joint ventures, manufacturing,  marketing, OEM, sponsored research, collaboration or distribution arrangements or (B) technology transfer  or development arrangements, (vi) securities issued or issuable to suppliers or third party service providers  in connection with the provision of goods or services, (vii) in an at-the-market (ATM) offering, and (viii)  securities issued in connection with options, warrants, convertible securities or other arrangement in  existence on the Closing Date or issued in transactions excluded from the definition of Subsequent Financing  pursuant to clause (i) through (vii) above; provided, however, that, if Borrower or its agents attempts to  “wall-cross” the Lender or its assignee or nominee in conjunction with any Subsequent Financing and the  Lender or its assignee or nominee declines to be “wall-crossed,” then the issuance and sale of such equity  securities shall not be considered a Subsequent Financing hereunder.  

 

      “Subsidiary” means an entity, whether a corporation, partnership, limited liability company,  joint venture or otherwise, in which Borrower owns or controls, either directly or indirectly, 50% or more of  the outstanding voting securities, including each entity listed on Schedule 1 hereto.  “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings  (including backup withholding), assessments, fees or other charges imposed by any governmental authority,  including any interest, additions to tax or penalties applicable thereto.  “Term Commitment” means as to any Lender, the obligation of such Lender, if any, to  make a Term Loan Advance to Borrower in a principal amount not to exceed the amount set forth under  the heading “Term Commitment” opposite such Lender’s name on Schedule 1.1(a).    “Term Loan Advance” means each Tranche 1 Advance, Tranche 2 Advance, Tranche 3  Advance, Tranche 4 Advance, Tranche 5 and any other Term Loan funds advanced under this Agreement.  “Term Loan Interest Rate” means for any day a per annum rate of interest equal to the greater  of (i) (x) the Prime Rate plus (y) four percent (4.00%), and (ii) eight and three-quarters percent (8.75%).  “Term Loan Maturity Date” means August 1, 2027; provided that if such day is not a  Business Day, the Term Loan Maturity Date shall be the immediately preceding Business Day.   “Trademark License” means any written agreement granting any right to use any  Trademark or Trademark registration, now owned or hereafter acquired by Borrower or in which Borrower  now holds or hereafter acquires any interest.   “Trademarks” means all trademarks (registered, common law or otherwise) and any  applications in connection therewith, including registrations, recordings and applications in the United States  Patent and Trademark Office or in any similar office or agency of the United States of America, any State  thereof or any other country or any political subdivision thereof.  “Tranche 1” means the advances pursuant to Section 2.1(a)(i).  “Tranche 2” means the advances pursuant to Section 2.1(a)(ii).  “Tranche 2 Facility Charge” means three-quarters of one percent (0.75%) of the principal  amount of any Advance pursuant to Tranche 2, which is payable to Lenders in accordance with Section  4.2(d).  “Tranche 3” means the advances pursuant to Section 2.1(a)(iii).  “Tranche 3 Facility Charge” means three-quarters of one percent (0.75%) of the principal  amount of any Advance pursuant to Tranche 3, which is payable to Lenders in accordance with Section  4.2(e).  “Tranche 4” means the advances pursuant to Section 2.1(a)(iv).  “Tranche 4 Facility Charge” means three-quarters of one percent (0.75%) of the principal  amount of any Advance pursuant to Tranche 4, which is payable to Lenders in accordance with Section  4.2(f).  “Tranche 5” means the advances pursuant to Section 2.1(a)(v).  

 

      “Tranche 5 Facility Charge” means one percent (1.00%) of the principal amount of any  Advance pursuant to Tranche 5, which is payable to Lenders in accordance with Section 4.2(g).  “UCC” means the Uniform Commercial Code as the same is, from time to time, in effect in  the State of New York; provided, that in the event that, by reason of mandatory provisions of law, any or all  of the attachment, perfection or priority of, or remedies with respect to, Agent’s Lien on any Collateral is  governed by the Uniform Commercial Code as the same is, from time to time, in effect in a jurisdiction other  than the State of New York, then the term “UCC” shall mean the Uniform Commercial Code as in effect,  from time to time, in such other jurisdiction solely for purposes of the provisions thereof relating to such  attachment, perfection, priority or remedies and for purposes of definitions related to such provisions.    “U.S. Person” means any Person that is a “United States person” as defined in Section  7701(a)(30) of the Code.  1.2 The following terms are defined in the Sections or subsections referenced opposite such  terms:  Defined Term Section  Agent Preamble  Assignee 11.14  Borrower Preamble  Claims 11.11  Collateral 3.1  Confidential Information 11.13  End of Term Charge 2.5  Event of Default 9  Financial Statements 7.1  Indemnified Person 6.3  Lenders Preamble  Liabilities 6.3  Maximum Rate 2.2  Open Source License 5.10  Participant Register 11.8  Prepayment Charge 2.4  Publicity Materials 11.19  Register 11.7  Rights to Payment 3.1  Tranche 1 Advance 2.1(a)  Tranche 2 Advance 2.1(a)  Tranche 3 Advance 2.1(a)  Tranche 4 Advance 2.1(a)  Tranche 5 Advance 2.1(a)  Transfer 7.8    

 

      1.3 Unless otherwise specified, all references in this Agreement or any Annex or Schedule  hereto to a “Section,” “subsection,” “Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding  Section, subsection, Exhibit, Annex, or Schedule in or to this Agreement.  Unless otherwise specifically  provided herein, any accounting term used in this Agreement or the other Loan Documents shall have the  meaning customarily given such term in accordance with GAAP, and all financial computations hereunder  shall be computed in accordance with GAAP, consistently applied; provided that if at any time any change  in GAAP would affect the computation of any financial covenant or ratio or requirement set forth in any  Loan Document, and either Borrower or Agent shall so request, Borrower, Agent and the Lenders shall  negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of  such change in GAAP; provided, further, that, until so amended, (a) such ratio or requirement shall continue  to be computed in accordance with GAAP prior to such change therein and (b) Borrower shall provide  Agent financial statements and other documents required under this Agreement or as reasonably requested  hereunder setting forth a reconciliation between calculations of such ratio covenant or requirement made  before and after giving effect to such change in GAAP.  Notwithstanding the foregoing, any obligations of  a Person that are or would have been treated as operating leases for purposes of GAAP prior to the issuance  by the Financial Accounting Standards Board on February 25, 2016 of an Accounting Standards Update  (the “ASU”) shall continue to be accounted for as operating leases for purposes of all financial definitions,  calculations and covenants for purpose of this Agreement (whether or not such operating lease obligations  were in effect on such date) notwithstanding the fact that such obligations are required in accordance with  the ASU (on a prospective or retroactive basis or otherwise) to be treated as capitalized lease obligations in  accordance with GAAP (other than for purposes of the delivery of financial statements prepared in  accordance with GAAP). Unless otherwise defined herein or in the other Loan Documents, terms that are  used herein or in the other Loan Documents and defined in the UCC shall have the meanings given to them  in the UCC.  For all purposes under the Loan Documents, in connection with any division or plan of division  under Delaware law (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right,  obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then  it shall be deemed to have been transferred from the original Person to the subsequent Person and (b) if any  new Person comes into existence, such new Person shall be deemed to have been organized on the first date  of its existence by the holders of its Equity Interests at such time.  SECTION 2.  THE LOAN  2.1 Term Loan Advances.  (a) Advances.    (i) Tranche 1.  Subject to the terms and conditions of this Agreement, the  Lenders will severally (and not jointly) make in an amount not to exceed its respective  Term Commitment, and Borrower agrees to draw, a Term Loan Advance of Fifty Million  Dollars ($50,000,000) on the Closing Date (the “Tranche 1 Advance”).  (ii) Tranche 2.  Subject to the terms and conditions of this Agreement,  beginning on the Performance Milestone 1 Date and continuing through December 15,  2022, Borrower may request and the Lenders shall severally (and not jointly) make  additional Term Loan Advances in an aggregate principal amount of Fifty Million Dollars  ($50,000,000), in minimum increments of $5,000,000 (the “Tranche 2 Advance”).    (iii) Tranche 3.  Subject to the terms and conditions of this Agreement,  beginning on the Performance Milestone 2 Date and continuing through September 30,  2023, Borrower may request and the Lenders shall severally (and not jointly) make  

 

      additional Term Loan Advances in an aggregate principal amount of Twenty-Five Million  Dollars ($25,000,000), in minimum increments of $5,000,000 (the “Tranche 3 Advance”).    (iv) Tranche 4.  Subject to the terms and conditions of this Agreement,  beginning on the Performance Milestone 3 Date and continuing through the earlier of (x)  September 30, 2024 and (y) that date that is ninety (90) days after the Performance  Milestone 3 Date, Borrower may request and the Lenders shall severally (and not jointly)  make additional Term Loan Advances in an aggregate principal amount of Seventy-Five  Million Dollars ($75,000,000), in minimum increments of $5,000,000 (the “Tranche 4  Advance”).    (v) Tranche 5.  Subject to the terms and conditions of this Agreement, and  conditioned on approval by the Lenders’ investment committee in its sole and unfettered  discretion, on or before the Amortization Date, Borrower may request additional Term  Loan Advances in an aggregate principal amount up to Fifty Million Dollars ($50,000,000),  in minimum increments of $5,000,000 (each, a “Tranche 5 Advance”).    The aggregate outstanding Term Loan Advances may be up to the Maximum Term Loan  Amount.  (b)  Advance Request.  To obtain a Term Loan Advance, Borrower shall complete,  sign and deliver an Advance Request (at least one (1) Business Day before the Closing Date and at  least five (5) Business Days before each Advance Date other than the Closing Date) to Agent.  The  Lenders shall fund the Term Loan Advance in the manner requested by the Advance Request  provided that each of the conditions precedent to such Term Loan Advance is satisfied as of the  requested Advance Date.  (c) Interest.  The principal balance shall bear interest thereon from such Advance Date  at the Term Loan Interest Rate based on a year consisting of 360 days, with interest computed daily  based on the actual number of days elapsed.  The Term Loan Interest Rate will float and change on  the day the Prime Rate changes from time to time.  (d) Payment.  Borrower will pay interest on each Term Loan Advance on the first  Business Day of each month, beginning the month after the Advance Date.  Borrower shall repay  the aggregate principal balance of the Term Loan Advances that is outstanding on the day  immediately preceding the Amortization Date, in equal monthly installments of principal and  interest (mortgage style) beginning on the Amortization Date and continuing on the first Business  Day of each month thereafter until the Secured Obligations (other than inchoate indemnity  obligations, any obligations under Bank Services Agreements that are cash collateralized in  accordance with Section 3.4 of this Agreement and any other obligations which, by their terms, are  to survive the termination of this Agreement) are repaid; provided, that if the Term Loan Interest  Rate is adjusted in accordance with its terms, the amount of each subsequent monthly installment  shall be recalculated.  The entire principal balance of the Term Loan Advances and all accrued but  unpaid interest hereunder, shall be due and payable on the Term Loan Maturity Date.  Borrower  shall make all payments under this Agreement without setoff, recoupment or deduction and  regardless of any counterclaim or defense, other than Taxes, which shall be governed by Addendum  I.  If a payment hereunder becomes due and payable on a day that is not a Business Day, the due  date thereof shall be the immediately preceding Business Day.  The Lenders will initiate debit  entries to Borrower’s account as authorized on the ACH Authorization (i) on each payment date of  all periodic obligations payable to the Lenders under each Term Loan Advance and (ii) out-of- pocket legal fees and costs incurred by Agent or the Lenders in connection with Section 11.12 of  

 

      this Agreement; provided that, with respect to clause (i) above, in the event that the Lenders or Agent  informs Borrower that the Lenders will not initiate a debit entry to Borrower’s account for a certain  amount of the periodic obligations due on a specific payment date, Borrower shall pay to Agent, for  the ratable benefit  of the Lenders such amount of periodic obligations in full in immediately  available funds on such payment date; provided, further, that, with respect to clause (i) above, if the  Lenders or Agent informs Borrower that the Lenders will not initiate a debit entry as described above  later than the date that is three (3) Business Days prior to such payment date, Borrower shall pay to  Agent, for the ratable benefit of the Lender, the Lenders such amount of periodic obligations in full  in immediately available funds on the date that is three (3) Business Days after the date on which  the Lenders or Agent notifies Borrower thereof; provided, further, that, with respect to clause (ii)  above, in the event that the Lenders or Agent informs Borrower that the Lenders will not initiate a  debit entry to Borrower’s account for certain amount of such out-of-pocket legal fees and costs  incurred by Agent or the Lenders, Borrower shall pay to the Lenders such amount in full in  immediately available funds within three (3) Business Days.  2.2 Maximum Interest.  Notwithstanding any provision in this Agreement or any other  Loan Document, it is the parties’ intent not to contract for, charge or receive interest at a rate that is  greater than the maximum rate permissible by law that a court of competent jurisdiction shall deem  applicable hereto (which under the laws of the State of New York shall be deemed to be the laws  relating to permissible rates of interest on commercial loans) (the “Maximum Rate”).  If a court of  competent jurisdiction shall finally determine that Borrower has actually paid to the Lenders an  amount of interest in excess of the amount that would have been payable if all of the Secured  Obligations had at all times borne interest at the Maximum Rate, then such excess interest actually  paid by Borrower shall be applied as follows:  first, to the payment of the Secured Obligations  consisting of the outstanding principal; second, after all principal is repaid, to the payment of the  Lenders’ accrued interest, costs, expenses, professional fees and any other Secured Obligations; and  third, after all Secured Obligations are repaid, the excess (if any) shall be refunded to Borrower.    2.3 Default Interest.  In the event any payment is not paid on the scheduled payment  date, an amount equal to four percent (4%) of the past due amount shall be payable on demand. In  addition, upon the occurrence and during the continuation of an Event of Default hereunder, all  Secured Obligations, including principal, interest, compounded interest, and professional fees, shall  bear interest at a rate per annum equal to the rate set forth in Section 2.1(c) plus four percent (4%)  per annum.  In the event any interest is not paid when due hereunder, delinquent interest shall be  added to principal and shall bear interest on interest, compounded at the rate set forth in  Section 2.1(c), or Section 2.4, as applicable.  2.4 Prepayment.  At its option upon at least five (5) Business Days prior written notice  to Agent, Borrower may prepay all of the outstanding Advances, or a portion thereof equal to or in  excess of Five Million Dollars ($5,000,000), by paying the entire principal balance (or such portion  thereof), all accrued and unpaid interest thereon, all unpaid Lender's fees and expenses due hereunder  accrued to the date of the repayment (including, without limitation, the portion of the End of Term  Charge applicable to the aggregate original principal amount of the Term Loan Advances being  prepaid in accordance with Section 2.5(a)), together with the Prepayment Charge.  If at any time  Borrower elects to make a prepayment, and at such time, there are outstanding Advances under  multiple Tranches, the Prepayment Charge shall be determined by applying the amount of such  prepayment in the following order: first, to the outstanding principal amount (and accrued but unpaid  interest thereon) of Advances outstanding under the Tranche with the most recent initial funding date;  second, to the outstanding principal amount (and accrued but unpaid interest thereon) of Advances  outstanding under the Tranche with the next most recent initial funding date and so on until the entire  

 

      principal balance of all Advances made hereunder (and all accrued but unpaid interest thereon) is  paid in full.  Borrower agrees that the Prepayment Charge is a reasonable calculation of the Lenders’  lost profits in view of the difficulties and impracticality of determining actual damages resulting from  an early repayment of the Advances.  Borrower shall prepay the outstanding amount of all principal  and accrued interest through the prepayment date and the Prepayment Charge upon the occurrence of  a Change in Control or any other prepayment hereunder. Notwithstanding the foregoing, each Lender  hereby waives the Prepayment Charge owing thereto if such Lender or an Affiliate thereof which is  controlled by such Lender (in its sole and absolute discretion) agrees in writing to refinance the  Advances prior to the Term Loan Maturity Date.  Any amounts paid under this Section shall be  applied by Agent to the then unpaid amount of any Secured Obligations (including principal and  interest) pro rata to all scheduled amounts owed.  For the avoidance of doubt, if a payment hereunder  becomes due and payable on a day that is not a Business Day, the due date thereof shall be the  immediately preceding Business Day.  Notwithstanding anything to the contrary contained in this  Agreement, so long as Borrower provides notice to Agent no less than three (3) Business Days prior  to the proposed prepayment date, Borrower may rescind any notice of prepayment if such  prepayment was intended to be made from the proceeds of a refinancing of all or a portion of the  Term Loan Advances, and if such refinancing shall not be consummated or shall otherwise be  delayed.  2.5 End of Term Charge.    (a) On the earliest to occur of (i) the Term Loan Maturity Date, (ii) the date that  Borrower prepays the outstanding Secured Obligations (other than any inchoate indemnity  obligations, any obligations under Bank Services Agreements that are cash collateralized in  accordance with Section 3.4 of this Agreement and any other obligations which, by their terms, are  to survive the termination of this Agreement) in full, (iii) the date that the Secured Obligations  become due and payable, or (iv) as required pursuant to Section 2.4, Borrower shall pay the Lenders  a charge of 4.25%, multiplied by the aggregate original principal amount of the Term Loan  Advances funded hereunder (the “End of Term Charge”).   (b) Notwithstanding the required payment date of such End of Term Charge, the  applicable pro rata portion of the End of Term Charge calculated pursuant to Section 2.5(a) shall  be deemed earned by the Lenders as of each date that an applicable Term Loan Advance is made.   For the avoidance of doubt, if a payment hereunder becomes due and payable on a day that is not  a Business Day, the due date thereof shall be the immediately preceding Business Day.  2.6 Pro Rata Treatment.  Each payment (including prepayment) on account of any fee  and any reduction of the Term Loans shall be made pro rata according to the Term Commitments of  the relevant Lender.  Except with respect to any payment received by SVB with respect to obligations  of Borrower in connection with Bank Services and except as otherwise provided in this Agreement,  all of the rights, interests and obligations of each Lender under this Agreement and related Loan  Documents, including security interests in the Collateral under this Agreement, shall be shared by the  Lenders in the ratio of (a) the aggregate outstanding principal amount of such Lender’s Term Loan  Advances to Borrower under this Agreement to (b) the aggregate outstanding principal amount of all  Term Loan Advances to Borrower under this Agreement. Each Lender shall promptly remit to the  other Lender such sums as may be necessary to ensure the ratable repayment of each Lender’s portion  of any Term Loan Advance. Notwithstanding the foregoing, a Lender receiving a scheduled payment  shall not be responsible for determining whether the other Lender also received its scheduled payment  on such date; provided, however, if it is later determined that a Lender received more than its ratable  share of scheduled payments made on any date or dates, then such Lender shall remit to the other  Lender such sums as may be necessary to ensure the ratable payment of such scheduled payments, as  

 

      instructed by Agent.  Any reference in this Agreement to an allocation between or sharing by the  Lenders of any right, interest or obligation “ratably,” “proportionally” or in similar terms shall refer  to this ratio. The provisions hereof shall apply irrespective of the time or order of attachment or  perfection of security interests, or the time or order of filing or recording of financing statements.  2.7 Taxes; Increased Costs.  Borrower, Agent and the Lenders each hereby agree to the  terms and conditions set forth on Addendum 1 attached hereto.  2.8 Treatment of Prepayment Charge and End of Term Charge.  Borrower agrees that  any Prepayment Charge and any End of Term Charge payable shall be presumed to be the liquidated  damages sustained by each Lender as the result of the early termination, and Borrower agrees that it  is reasonable under the circumstances currently existing and existing as of the Closing Date.  The  Prepayment Charge and the End of Term Charge shall also be payable in the event the Secured  Obligations (and/or this Agreement) are satisfied or released by foreclosure (whether by power of  judicial proceeding), deed in lieu of foreclosure, or by any other means.  Borrower expressly waives  (to the fullest extent it may lawfully do so) the provisions of any present or future statute or law that  prohibits or may prohibit the collection of the foregoing Prepayment Charge and End of Term  Charge in connection with any such acceleration.  Borrower agrees (to the fullest extent that each  may lawfully do so): (a) each of the Prepayment Charge and the End of Term Charge is reasonable  and is the product of an arm’s length transaction between sophisticated business people, ably  represented by counsel; (b) each of the Prepayment Charge and the End of Term Charge shall be  payable notwithstanding the then prevailing market rates at the time payment is made; (c) there has  been a course of conduct between the Lenders and Borrower giving specific consideration in this  transaction for such agreement to pay the Prepayment Charge and the End of Term Charge as a  charge (and not interest) in the event of prepayment or acceleration; and (d) Borrower shall be  estopped from claiming differently than as agreed to in this paragraph.  Borrower expressly  acknowledges that its agreement to pay each of the Prepayment Charge and the End of Term Charge  to the Lenders as herein described was on the Closing Date and continues to be a material  inducement to the Lenders to provide the Term Loan Advances.  SECTION 3.  SECURITY INTEREST  3.1 As security for the prompt and complete payment when due (whether on the payment  dates or otherwise) of all the Secured Obligations, Borrower grants to Agent a security interest in all  of Borrower’s right, title, and interest in, to and under all of Borrower’s personal property and other  assets including without limitation the following (except as set forth herein) whether now owned or  hereafter acquired (collectively, the “Collateral”):  (a) Receivables; (b) Equipment; (c) Fixtures; (d)  General Intangibles; (e) Inventory; (f) Investment Property; (g) Deposit Accounts; (h) Cash; (i)  Goods; and all other tangible and intangible personal property of Borrower whether now or hereafter  owned or existing, leased, consigned by or to, or acquired by, Borrower and wherever located, and  any of Borrower’s property in the possession or under the control of Agent; and, to the extent not  otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and  replacements for, and rents, profits and products of each of the foregoing.  3.2 Notwithstanding the broad grant of the security interest set forth in Section 3.1,  above, the Collateral shall not include (collectively, the “Excluded Collateral”): (a) any “intent to  use” trademarks at all times prior to the first use thereof, whether by the actual use thereof in  commerce, the recording of a statement of use with the United States Patent and Trademark Office  or otherwise, provided, that upon submission and acceptance by the United States Patent and  Trademark Office of an amendment to allege use of an intent-to-use trademark application pursuant  to 15 U.S.C. Section 1060(a) (or any successor provision) such intent-to-use application shall  

 

      constitute Collateral, and (b) nonassignable licenses or contracts, which by their terms require the  consent of the licensor thereof or another party (but only to the extent such prohibition on transfer  is enforceable under applicable law, including, without limitation, Sections 9406, 9407 and 9408 of  the UCC), (c) any Excluded Accounts, (d) any assets as to which Agent in its reasonable discretion  shall determine that the costs and burdens of obtaining or perfecting a security interest therein  substantially outweigh the benefit to the Lenders of the security afforded thereby (including, without  limitation, vehicles and other assets subject to a certificate of title), (e) more than 65% of the issued  and outstanding shares of capital stock which entitle the holder thereof to vote for directors or any  other matter of (i) IVERIC bio Europe Limited or (ii) any Foreign Subsidiary formed after the  Closing Date, solely, in the case of this clause (ii), to the extent Borrower has provided Agent with  evidence satisfactory to Agent that the pledge of more than 65% of such voting stock of such  Subsidiary would reasonably be expected to result in a material adverse tax consequence to  Borrower, and solely for as long as such consequence may result, such portion of such voting stock  of such Subsidiary, if excluded from the Collateral, would avoid such material adverse tax  consequence (it being understood that in the case of any Foreign Subsidiary whose ownership does  not satisfy the holding period requirement set forth in Section 246(c)(5) of the Code, not more than  65% of such Foreign Subsidiary’s stock shall be required to be pledged until the holding period is  satisfied), (f) property for which the granting of a security interest therein is contrary to applicable  law, rule or regulation, provided that upon the cessation of any such restriction or prohibition, such  property shall automatically be included in the Collateral, (g) any cash collateral deposit subject to  a Permitted Lien hereunder, if the grant of a security interest with respect to such property pursuant  to this Agreement would be prohibited by the agreement creating such Permitted Lien or would  otherwise constitute a default thereunder or create a right of termination a party thereto (other than  Borrower), provided that upon the termination and release of such cash collateral, such property  shall automatically be included in the Collateral, (h) any lease, license or other agreement and any  property subject thereto on the Closing Date or on the date of the acquisition of such property (other  than any property acquired by a Loan Party subject to any such contract or other agreement to the  extent such contract or other agreement was incurred in contemplation of such acquisition) to the  extent that a grant of a security interest therein to secure the Secured Obligations would violate or  invalidate such lease, license, contract or agreement or create a right of termination in favor of any  other party thereto (other than Borrower, any other Loan Party or any Subsidiary) (but (A) only to  the extent such prohibition is enforceable under applicable law and (B) other than to the extent that  any such term would be rendered ineffective pursuant to Sections 9-406, 9-408 or 9-409 (or any  other Section) of Article 9 of the UCC), (i) Equipment or software or other intellectual property (and  the products and proceeds thereof) subject to Permitted Liens of the type described in clause (vii) of  the definition of Permitted Liens, but only to the extent and for so long as the agreements under  which the equipment is financed prohibit granting a security interest therein to Agent.  3.3 Upon termination of this Agreement and repayment in full of all Secured  Obligations (other than any inchoate indemnity obligations, any obligations under Bank Services  Agreements that are cash collateralized in accordance with Section 3.4 of this Agreement and any  other obligations which, by their terms, are to survive the termination of this Agreement), all security  interest in the Collateral granted under this Agreement shall terminate and all rights on the Collateral  shall revert to Borrower. Agent shall execute such documents and take such other steps as are  reasonably necessary for Borrower to accomplish the foregoing, all at Borrower’s sole cost and  expense.  3.4 The security interest granted in Section 3.1 of this Agreement shall continue until  the Secured Obligations (other than any inchoate indemnity obligations, any obligations under Bank  Services Agreements that are cash collateralized in accordance with this Section 3.4 of this  

 

      Agreement and any other obligations which, by their terms, are to survive the termination of this  Agreement) have been paid in full and Lender has no further commitment or obligation hereunder  or under the other Loan Documents to make any further Advances, and shall thereupon terminate  upon Borrower providing cash collateral acceptable to SVB in its reasonable discretion (and  executing, delivering and filing, alone or with SVB, any financing statements, security agreements,  collateral assignments, notices, control agreements or other documents to perfect SVB’s security  interest in such cash collateral) for Secured Obligations constituting Bank Services, if any, and  Lender and Agent shall, at Borrower’s expense, take all actions reasonably requested by Borrower  to evidence such termination.  In the event there are Bank Services that are Secured Obligations  consisting of outstanding Letters of Credit, Borrower shall provide to SVB cash collateral (and  execute, deliver and file, alone or with SVB, any financing statements, security agreements,  collateral assignments, notices, control agreements or other documents to perfect SVB’s security  interest in such cash collateral) in an amount equal to at least one hundred three percent (103.0%)  plus all interest, fees, and costs due or to become due in connection therewith (as estimated by SVB  in its good faith business judgment), to secure all of the Secured Obligations relating to such Letters  of Credit.    3.5 Borrower acknowledges that it previously has entered, and/or may in the future  enter, into Bank Services Agreements with SVB. Regardless of the terms of any Bank Services  Agreement, Borrower agrees that any amounts Borrower owes SVB thereunder shall be deemed to  be Secured Obligations hereunder and that it is the intent of Borrower and SVB to have all such  Secured Obligations secured by the first priority perfected security interest in the Collateral granted  herein (subject only to Addendum 4 and Permitted Liens that are permitted pursuant to the terms of  this Agreement to have superior priority to Agent’s Lien in this Agreement), and by any and all  other security agreements, mortgages, or other collateral granted to Agent by Borrower as security  for the Secured Obligations, now or in the future.  SECTION 4.  CONDITIONS PRECEDENT TO LOAN  The obligations of the Lenders to make the Loan hereunder are subject to the satisfaction by  Borrower of the following conditions:  4.1 Initial Advance.  On or prior to the Closing Date, Borrower shall have delivered to  Agent the following:  (a) executed copies of the Loan Documents, Account Control Agreements required by  Section 7.12(b), and all other documents and instruments reasonably required by Agent to  effectuate the transactions contemplated hereby or to create and perfect the Liens of Agent with  respect to all Collateral, in all cases in form and substance reasonably acceptable to Agent;  (b) a legal opinion of Borrower’s counsel in form and substance reasonably acceptable  to Agent,  (c) certified copy of resolutions of Borrower’s Board evidencing approval of the Loan  and other transactions evidenced by the Loan Documents, certified by an officer of Borrower;   (d) certified copies of the Charter of Borrower, certified by the Secretary of State of  the applicable jurisdiction of organization and the other Organizational Documents, as amended  through the Closing Date, of Borrower, certificated by an officer of Borrower;  

 

      (e) certificates of good standing for Borrower from its state of incorporation and  similar certificates from all other jurisdictions in which it does business and where the failure to be  qualified could have a Material Adverse Effect;  (f) payment of the Initial Facility Charge and reimbursement of Agent’s and the  Lenders’ current expenses reimbursable pursuant to this Agreement, which amounts may be  deducted from the initial Advance;   (g) a duly executed copy of the Perfection Certificate and each exhibit and addendum  thereto;   (h) all certificates of insurance, endorsements and copies of each insurance policy  required hereunder;   (i) [reserved]; and  (j) such other documents as Agent may reasonably request.  4.2 All Advances.  On each Advance Date:  (a) Agent shall have received (i) an Advance Request for the relevant Advance as  required by Section 2.1(b), each duly executed by Borrower’s Chief Executive Officer or Chief  Financial Officer, and (ii) any other documents Agent may reasonably request.  (b) The representations and warranties set forth in this Agreement shall be true and  correct in all material respects on and as of the applicable Advance Date with the same effect as  though made on and as of such date, except to the extent such representations and warranties  expressly relate to an earlier date.  (c) Borrower shall be in compliance with all the terms and provisions set forth herein  and in each other Loan Document on its part to be observed or performed, and at the time of and  immediately after such Advance no Event of Default shall have occurred and be continuing.  (d) With respect to any Advance pursuant to Tranche 2, the Loan Parties shall have  paid the Tranche 2 Facility Charge;   (e) With respect to any Advance pursuant to Tranche 3, the Loan Parties shall have  paid the Tranche 3 Facility Charge;  (f) With respect to any Advance pursuant to Tranche 4, the Loan Parties shall have  paid the Tranche 4 Facility Charge;  (g) With respect to any Advance pursuant to Tranche 5, the Loan Parties shall have  paid the Tranche 5 Facility Charge; and  (h) Each Advance Request shall be deemed to constitute a representation and warranty  by Borrower on the relevant Advance Date as to the matters specified in subsections (b) and (c) of  this Section 4.2 and as to the matters set forth in the Advance Request.  4.3 No Default.  As of the Closing Date and each Advance Date, (i) no fact or condition  exists that could (or could, with the passage of time, the giving of notice, or both) constitute an Event  

 

      of Default and (ii) no event that has had or could reasonably be expected to have a Material Adverse  Effect has occurred and is continuing.  4.4 Post-Close Obligations.   (a) Notwithstanding any provision herein or in any other Loan Document to the  contrary, to the extent not actually delivered on or prior to the Closing Date, Borrower shall use  commercially reasonable efforts to deliver to Agent (or its designated attorney or representative),  within ninety (90) days after the Closing Date (or such later date that Agent may agree to in its sole  discretion), a landlord consent for its (i) chief executive office or its principal place of business and  (ii) offices or business locations, including warehouses, containing in excess of $[**] of Borrower’s  assets or property (other than business locations or warehouses holding primarily (x) works-in- progress, raw materials or otherwise in the supply chain for commercial manufacturing or sale of  Borrower Product or (y) assets in connection with clinical and pre-clinical studies, including  contract manufacturing organizations, distribution service firms, contract research organizations,  clinical sites, clinical investigators and other institutions);  (b)  Within thirty (30) days after the Closing Date (or such later date that Agent may  agree to in its sole discretion), Borrower shall deliver all endorsements with respect to each  insurance policy required pursuant to Section 6.2;  (c) Within five (5) Business Days after the Closing Date (or such later date that Agent  may agree to in its sole discretion), Borrower shall deliver an Account Control Agreement in respect  of the securities account of Borrower set forth in the perfection certificate delivered by Borrower  to Agent on the Closing Date and maintained at Silicon Valley Bank, in form and substance  reasonably satisfactory to Agent; provided, however, that the proceeds of the Term Loan Advances  shall not be transferred to the aforementioned accounts prior to the delivery of the Account Control  Agreements required pursuant to this Section 4.4(c); and  (d) Within three (3) Business Days after the Closing Date (or such later date that Agent  may agree to in its sole discretion), Borrower shall deliver evidence to Lender that the Borrower is  in good standing under the laws of the commonwealth of Massachusetts.  SECTION 5.  REPRESENTATIONS AND WARRANTIES OF  BORROWER  Borrower represents and warrants that:  5.1 Organizational Status.  Borrower is a duly organized, legally existing and in good  standing under the laws its jurisdiction of formation, and is duly qualified as a foreign corporation,  limited liability company or partnership, as the case may be, in all jurisdictions in which the nature  of its business or location of its properties require such qualifications and where the failure to be  qualified could reasonably be expected to have a Material Adverse Effect.  Borrower’s present name,  former names (if any), locations, place of formation, tax identification number, organizational  identification number and other information are correctly set forth in Exhibit B, as may be updated  by Borrower in a written notice (including any Compliance Certificate) provided to Agent after the  Closing Date in accordance with this Agreement.   5.2 Collateral.  Borrower owns the Collateral free of all Liens, except for Permitted  Liens.  Borrower has the power and authority to grant to Agent a Lien in the Collateral as security for  the Secured Obligations.    

 

      5.3 Consents.  Borrower’s execution, delivery and performance of this Agreement and  all other Loan Documents to which it is a party, (i) have been duly authorized by all necessary action  in accordance with Borrower’s Organizational Documents and appliable law, (ii) will not result in  the creation or imposition of any Lien upon the Collateral, other than Permitted Liens and the Liens  created by this Agreement and the other Loan Documents, (iii) do not violate (A) any provisions of  Borrower’s Organizational Documents, or (B) any, law, regulation, order, injunction, judgment,  decree or writ to which Borrower is subject in any material respect and (iv) do not violate any  material contract or agreement or require the consent or approval of any other Person which has not  already been obtained.  The individual or individuals executing the Loan Documents on behalf of  Borrower are duly authorized to do so.  5.4 Material Adverse Effect.  No Material Adverse Effect has occurred and is  continuing. Borrower is not aware of any event likely to occur that is reasonably expected to result  in a Material Adverse Effect.  5.5 Actions Before Governmental Authorities.  There are no actions, suits or  proceedings at law or in equity or by or before any governmental authority now pending or, to the  knowledge of Borrower, threatened against or affecting Borrower or its property, that is reasonably  expected to result in a Material Adverse Effect.   5.6 Laws.  Neither Borrower nor any of its Subsidiaries is in violation of any law, rule  or regulation, or in default with respect to any judgment, writ, injunction or decree of any  governmental authority, where such violation or default would reasonably be expected to result in a  Material Adverse Effect.  Borrower is not in default under (i) any provision of any agreement or  instrument evidencing material Indebtedness in any material respect, or (ii) any other material  agreement to which it is a party or by which it is bound that would reasonably be expected to result  in a Material Adverse Effect.    Neither Borrower nor any of its Subsidiaries is an “investment company” or a company  “controlled” by an “investment company” under the Investment Company Act of 1940, as amended.   Neither Borrower nor any of its Subsidiaries is engaged as one of its important activities in extending  credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors).   Borrower and each of its Subsidiaries has complied in all material respects with the Federal Fair  Labor Standards Act.  Neither Borrower nor any of its Subsidiaries is a “holding company” or an  “affiliate” of a “holding company” or a “subsidiary company” of a “holding company” as each term  is defined and used in the Public Utility Holding Company Act of 2005.  Neither Borrower’s nor any  of its Subsidiaries’ properties or assets has been used by Borrower or such Subsidiary or, to  Borrower’s Knowledge, by previous Persons, in disposing, producing, storing, treating, or  transporting any hazardous substance other than in material compliance with applicable laws.   Borrower and each of its Subsidiaries has obtained all material consents, approvals and authorizations  of, made all material declarations or filings with, and given all material notices to, all governmental  authorities that are necessary to continue their respective businesses as currently conducted.  None of Borrower, any of its Subsidiaries, or, to the knowledge of Borrower, any of  Borrower’s or its Subsidiaries’ Affiliates or any of their respective agents acting or benefiting in any  capacity in connection with the transactions contemplated by this Agreement is (i) in violation of any  Anti-Terrorism Law, (ii) engaging in or conspiring to engage in any transaction that evades or avoids,  or has the purpose of evading or avoiding or attempts to violate, any of the prohibitions set forth in  any Anti-Terrorism Law, or (iii) is a Blocked Person.  None of Borrower, any of its Subsidiaries, or  to the knowledge of Borrower and any of their Affiliates or agents, acting or benefiting in any capacity  in connection with the transactions contemplated by this Agreement, (x) conducts any business or  

 

      engages in making or receiving any contribution of funds, goods or services to or for the benefit of  any Blocked Person, or (y) deals in, or otherwise engages in any transaction relating to, any property  or interest in property blocked pursuant to Executive Order No. 13224, any similar executive order  or other Anti-Terrorism Law.  None of the funds to be provided under this Agreement will be used,  directly or indirectly, (a) for any activities in violation of any applicable anti-money laundering,  economic sanctions and anti-bribery laws and regulations laws and regulations or (b) for any payment  to any governmental official or employee, political party, official of a political party, candidate for  political office, or anyone else acting in an official capacity, in order to obtain, retain or direct  business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices  Act of 1977, as amended.  5.7 Information Correct and Current.  No information, report, Advance Request,  financial statement, exhibit or schedule furnished, by or on behalf of Borrower to Agent in  connection with any Loan Document or included therein or delivered pursuant thereto contained, or,  when taken as a whole, contains or will contain any material misstatement of fact or, when taken  together with all other such information or documents, omitted, omits or will omit to state any  material fact necessary to make the statements therein, in the light of the circumstances under which  they were, are or will be made, not materially misleading at the time such statement was made or  deemed made. Additionally, any and all financial or business projections provided by Borrower to  Agent, whether prior to or after the Closing Date, shall be (i) provided in good faith and based on  the most current data and information available to Borrower, and (ii) the most current of such  projections provided to Borrower’s Board (it being understood that the projections and forecasts  provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts,  that such projections are subject to significant uncertainties and contingencies, many of which are  beyond the control of Borrower, that no assurance is given that any particular projections will be  realized, and that actual results during the period or periods covered by such projections and  forecasts may differ from the projected or forecasted results).   5.8 Tax Matters.  Except as described on Schedule 5.8, (a) Borrower and its Subsidiaries  have filed all federal and state income Tax returns and other material Tax returns that they are  required to file, (b) Borrower and its Subsidiaries have duly paid all federal and state income Taxes  and other material Taxes or installments thereof that they are required to pay, except Taxes being  contested in good faith by appropriate proceedings and for which Borrower and its Subsidiaries  maintain adequate reserves in accordance with GAAP, and (c) to the best of Borrower’s knowledge,  no proposed or pending Tax assessments, deficiencies, audits or other proceedings with respect to  Borrower or any Subsidiary have had, or could reasonably be expected to have, individually or in  the aggregate, a Material Adverse Effect.  5.9 Intellectual Property Claims.  Borrower is the sole owner of, or otherwise has the  right to use, the Intellectual Property material to Borrower’s business.  Except as described on  Schedule 5.9 (as such schedule may be updated by Borrower in a written notice provided from time  to time after the Closing Date), (i) each of the material Copyrights, Trademarks and Patents is valid  and enforceable, (ii) no material part of the Intellectual Property has been judged invalid or  unenforceable, in whole or in part, and (iii) except as set forth in the most recently delivered  Compliance Certificate in accordance with Section 7.1(d), no claim has been made to Borrower that  any material part of the Intellectual Property violates the rights of any third party. Exhibit C is a true,  correct and complete list of each of Borrower’s Patents, registered Trademarks, registered  Copyrights, and Material Agreements under which Borrower licenses Intellectual Property from  third parties (other than shrink-wrap software licenses), together with application or registration  numbers, as applicable, owned by Borrower or any Subsidiary, in each case as of the Closing Date.  

 

      Borrower is not in material breach of, nor has Borrower failed to perform any material obligations  under, any of the foregoing contracts, licenses or agreements and, to Borrower’s knowledge, no third  party to any such contract, license or agreement is in material breach thereof or has failed to perform  any material obligations thereunder.    5.10 Intellectual Property.    (a) Except as described on Schedule 5.10 (as such schedule may be updated by  Borrower in a written notice provided from time to time after the Closing Date), Borrower has all  material rights with respect to Intellectual Property necessary or material in the operation or  conduct of Borrower’s business as currently conducted and proposed to be conducted by Borrower.   Without limiting the generality of the foregoing, and in the case of Licenses, except for restrictions  that are unenforceable under Division 9 of the UCC or restrictions that are permitted hereunder,  Borrower has the right, to the extent required to operate Borrower’s business, to freely transfer,  license or assign Intellectual Property owned by Borrower and  necessary or material in the  operation or conduct of Borrower’s business as currently conducted and proposed to be conducted  by Borrower, without condition, restriction or payment of any kind (other than license payments in  the ordinary course of business) to any third party, and Borrower owns or has the right to use,  pursuant to valid licenses, all software development tools, library functions, compilers and all other  third-party software and other items that are material to Borrower’s business and used in the design,  development, promotion, sale, license, manufacture, import, export, use or distribution of Borrower  Products that are material to Borrower’s business except customary covenants in license  agreements, joint venture or strategic alliances (to the extent such joint ventures or strategic  alliances are Permitted Investments) and equipment leases where Borrower is the licensee or lessee.    (b) No material software or other material materials used by Borrower or any of its  Subsidiaries (or used in any Borrower Products or any Subsidiaries’ products) are subject to an  open-source or similar license (including but not limited to the General Public License, Lesser  General Public License, Mozilla Public License, or Affero License) (collectively, “Open Source  Licenses”) in a manner that would cause such software or other materials to have to be (i)  distributed to third parties at no charge or a minimal charge (royalty-free basis); (ii) licensed to  third parties to modify, make derivative works based on, decompile, disassemble, or reverse  engineer; or (iii) used in a manner that could require disclosure or distribution in source code form.  (c) There are no unpaid fees or royalties under any Material Agreements that have  become due, or are expected to become overdue.  Each Material Agreement is in full force and  effect and is legal, valid, binding, and enforceable in accordance with its respective terms, except  as may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating  to or limiting creditors’ rights generally or by equitable principles relating to enforceability.  Except  as set forth on Schedule 5.10(d), neither Borrower nor any of its Subsidiaries, as applicable, is in  breach of or default in any manner that could reasonably be expected to materially affect the  Borrower Products under any Material Agreement to which it is a party or may otherwise be bound,  and no circumstances or grounds exist that would give rise to a claim of breach or right of  rescission, termination, non-renewal, revision or amendment of any of the Material Agreements,  including the execution, delivery and performance of this Agreement and the other Loan  Documents.  5.11 Borrower Products.  Except as described on Schedule 5.11 or in the most recently  delivered Compliance Certificate in accordance with Section 7.1(d), no material Intellectual  Property owned by Borrower or Borrower Product has been or is subject to any actual or, to the  knowledge of Borrower, threatened (in writing) litigation, proceeding (including any proceeding in  

 

      the United States Patent and Trademark Office or any corresponding foreign office or agency) or  outstanding decree, order, judgment, settlement agreement or stipulation that restricts in any manner  Borrower’s use, transfer or licensing thereof or that may affect the validity, use or enforceability  thereof. There is no decree, order, judgment, agreement, stipulation, arbitral award or other provision  entered into in connection with any litigation or proceeding that obligates Borrower to grant licenses  or ownership interest in any future Intellectual Property related to the operation or conduct of the  business of Borrower or Borrower Products.  Borrower has not received any written notice or claim,  or, to the knowledge of Borrower, oral notice or claim, challenging or questioning Borrower’s  ownership in any material Intellectual Property (or written notice of any claim challenging or  questioning the ownership in any licensed Intellectual Property of the owner thereof) or suggesting  that any third party has any claim of legal or beneficial ownership with respect thereto nor, to  Borrower’s knowledge, is there a reasonable basis for any such claim.  To Borrower’s knowledge,  neither Borrower’s use of its material Intellectual Property nor the production and sale of Borrower  Products infringes the Intellectual Property or other rights of others.   5.12 Financial Accounts.  Exhibit D, as may be updated by Borrower in a written notice  provided to Agent after the Closing Date, is a true, correct and complete list of (a) all banks and  other financial institutions at which Borrower or any Subsidiary maintains Deposit Accounts and  (b) all institutions at which Borrower or any Subsidiary maintains an account holding Investment  Property, and such exhibit correctly identifies the name, address and telephone number of each bank  or other institution, the name in which the account is held, a description of the purpose of the account,  and the complete account number therefor.  5.13 Employee Loans.  Except for loans constituting Permitted Investments, Borrower  has no outstanding loans to any employee, officer or director of Borrower nor has Borrower  guaranteed the payment of any loan made to an employee, officer or director of Borrower by a third  party.  5.14 Subsidiaries.  Borrower does not own any stock, partnership interest or other  securities of any Person, except for Permitted Investments.  Attached as Schedule 5.14, as may be  updated by Borrower in a written notice provided after the Closing Date, is a true, correct and  complete list of each Subsidiary.  SECTION 6.  INSURANCE; INDEMNIFICATION  6.1 Coverage.  Borrower shall cause to be carried and maintained commercial general  liability insurance covering Borrower and each of its Subsidiaries, on an occurrence form, against  risks and in such amounts customarily insured against in Borrower’s line of business.  Such risks  shall include the risks of bodily injury, including death, property damage, personal injury,  advertising injury, and contractual liability per the terms of the indemnification agreement found in  Section 6.3.  Borrower must maintain a minimum of $[**] of commercial general liability insurance  for each occurrence.  Borrower has and agrees to maintain a minimum of $[**] of directors’ and  officers’ insurance for each occurrence and $[**] in the aggregate.  So long as there are any Secured  Obligations (other than inchoate indemnity obligations, any obligations under Bank Services  Agreements that are cash collateralized in accordance with Section 3.4 of this Agreement and any  other obligations which, by their terms, are to survive the termination of this Agreement)  outstanding, Borrower shall also cause to be carried and maintained insurance upon the business and  assets of Borrower and its Subsidiaries, insuring against all risks of physical loss or damage  howsoever caused, in an amount not less than the full replacement cost of the Collateral, provided  that such insurance may be subject to standard exceptions and deductibles.  If Borrower fails to  obtain the insurance called for by this Section 6.1 or fails to pay any premium thereon or fails to pay  

 

      any other amount which Borrower is obligated to pay under this Agreement or any other Loan  Document or which may be required to preserve the Collateral, Agent may obtain such insurance or  make such payment, and all amounts so paid by Agent are immediately due and payable, bearing  interest at the then highest rate applicable to the Secured Obligations, and secured by the  Collateral.  Agent will make reasonable efforts to provide Borrower with notice of Agent obtaining  such insurance at the time it is obtained or within a reasonable time thereafter.  No payments by  Agent are deemed an agreement to make similar payments in the future or Agent’s waiver of any  Event of Default.  6.2 Certificates.  Borrower shall deliver to Agent certificates of insurance that evidence  Borrower’s compliance with its insurance obligations in Section 6.1 and the obligations contained  in this Section 6.2.  Borrower’s insurance certificate shall state Agent (shown as “Hercules Capital,  Inc., as Agent”) is an additional insured for commercial general liability, a lenders loss payable for  all risk property damage insurance, subject to the insurer’s approval, and a lenders loss payable for  property insurance and additional insured for liability insurance for any future insurance that  Borrower may acquire from such insurer.  Attached to the certificates of insurance will be additional  insured endorsements for liability and lender’s loss payable endorsements for all risk property  damage insurance.  All certificates of insurance will provide for a minimum of thirty (30) days  advance written notice to Agent of cancellation (other than cancellation for non-payment of  premiums, for which ten (10) days’ advance written notice shall be sufficient) or any other change  adverse to Agent’s interests.  Any failure of Agent to scrutinize such insurance certificates for  compliance is not a waiver of any of Agent’s rights, all of which are reserved.  Upon Agent’s request,  Borrower shall provide Agent with copies of each insurance policy, and upon entering or amending  any insurance policy required hereunder, Borrower shall provide Agent with copies of such policies  and shall promptly deliver to Agent updated insurance certificates with respect to such policies.  6.3 Indemnity.  Borrower agrees to indemnify and hold Agent, the Lenders and their  officers, directors, employees, agents, in-house attorneys, representatives and shareholders (each, an  “Indemnified Person”) harmless from and against any and all claims, costs, expenses, damages and  liabilities (including such claims, costs, expenses, damages and liabilities based on liability in tort,  including strict liability in tort), including reasonable, documented out-of-pocket attorneys’ fees and  disbursements and other costs of investigation or defense (including those incurred upon any appeal)  (collectively, “Liabilities”), that may be instituted or asserted against or incurred by such  Indemnified Person as the result of credit having been extended, suspended or terminated under this  Agreement and the other Loan Documents or the administration of such credit, or in connection with  or arising out of the transactions contemplated hereunder and thereunder, or any actions or failures  to act in connection therewith, or arising out of the disposition or utilization of the Collateral,  excluding in all cases Liabilities to the extent resulting solely from any Indemnified Person’s gross  negligence or willful misconduct.  This Section 6.3 shall not apply with respect to Taxes other than  any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim.  In no event  shall any Indemnified Person be liable on any theory of liability for any special, indirect,  consequential or punitive damages (including any loss of profits, business or anticipated savings).  This Section 6.3 shall survive the repayment of indebtedness under, and otherwise shall survive the  expiration or other termination of, this Agreement.  SECTION 7.  COVENANTS OF BORROWER  Borrower agrees as follows:  7.1 Financial Reports.  Borrower shall furnish to Agent the financial statements and  reports listed hereinafter (the “Financial Statements”):  

 

      (a) as soon as practicable (and in any event within thirty (30) days) after the end of  each month, unaudited interim and year-to-date financial statements as of the end of such month  (prepared on a consolidated basis), including balance sheet and related statements of income and  cash flows, all certified by Borrower’s Chief Executive Officer or Chief Financial Officer to the  effect that they have been prepared in accordance with GAAP, except (i) for the absence of  footnotes, (ii) that they are subject to normal year-end adjustments, and (iii) they do not contain  certain non-cash items that are customarily included in quarterly and annual financial statements;   (b) as soon as practicable (and in any event within forty-five (45) days) after the end  of each calendar  quarter, unaudited interim and year-to-date financial statements as of the end of  such calendar quarter (prepared on a consolidated basis), including balance sheet and related  statements of income and cash flows, all certified by Borrower’s Chief Executive Officer or Chief  Financial Officer to the effect that they have been prepared in accordance with GAAP, except (i)  for the absence of footnotes, and (ii) that they are subject to normal year-end adjustments;  (c) as soon as practicable (and in any event within ninety (90) days) after the end of  each fiscal year, unqualified (other than as to going concern qualification) audited financial  statements as of the end of such year (prepared on a consolidated basis), including balance sheet  and related statements of income and cash flows, and setting forth in comparative form the  corresponding figures for the preceding fiscal year, certified by Ernst & Young LLP or another  firm of independent certified public accountants selected by Borrower and reasonably acceptable  to Agent, accompanied by any management report from such accountants;   (d)  as soon as practicable (and in any event within 30 days) after the end of each  month, a Compliance Certificate in the form of Exhibit E;  (e) as soon as practicable (and in any event within 30 days) after the end of each  month, a report showing agings of accounts receivable and accounts payable;  (f) promptly after the sending or filing thereof, as the case may be, copies of any proxy  statements, financial statements or reports that IVERIC bio has made available to holders of its  Common Stock and copies of any regular, periodic and special reports or registration statements  that Borrower files with the Securities and Exchange Commission or any governmental authority  that may be substituted therefor;  (g) [reserved];  (h) financial and business projections promptly following their approval by IVERIC  bio’s Board, and in any event, within 60 days after the end of Borrower’s fiscal year, as well as  budgets, operating plans and other financial information reasonably requested by Agent; and  (i) immediate notice of the occurrence of any default or event of default (or any  comparable term) under any Permitted Senior Revolving Loan Document;  (j) insurance renewal statements, annually or otherwise promptly upon renewal of  insurance policies required to be maintained in accordance with Section 6.1; and   (k) prompt, and in any event, within two (2) Business Days after obtaining knowledge  thereof, notice if Borrower or any Subsidiary has knowledge that Borrower, or any Subsidiary or  Affiliate of Borrower, is listed on the OFAC Lists or (a) is convicted on, (b) pleads nolo contendere  

 

      to, (c) is indicted on, or (d) is arraigned and held over on charges involving money laundering or  predicate crimes to money laundering.    Borrower shall not make any change in its (a) accounting policies or reporting practices, other than  as permitted under GAAP or pursuant to applicable securities laws or regulations of the SEC, or (b)  fiscal years or fiscal quarters. The fiscal year of Borrower shall end on December 31.   The executed Compliance Certificate, and all Financial Statements required to be delivered pursuant  to clauses (a), (b), (c) and (d), shall be sent via e-mail to [**] with a copy to [**]; provided, that if e- mail is not available or sending such Financial Statements via e-mail is not possible, they shall be  faxed to Agent at: [**], attention Account Manager: IVERIC bio, Inc.   Notwithstanding the foregoing, documents required to be delivered under Sections 7.1(a), (b), (c) or  (f) (to the extent any such documents are included in materials otherwise filed with the SEC) may be  delivered electronically and if so delivered, shall be deemed to have been delivered on the date on  which Borrower makes such documents publicly available.  7.2 Management Rights.  Borrower shall permit any representative that Agent or the  Lenders authorizes, including its attorneys and accountants, to inspect the Collateral and examine  and make copies and abstracts of the books of account and records of Borrower at reasonable times  and upon reasonable notice during normal business hours; provided, however, that so long as no  Event of Default has occurred and is continuing, such examinations shall be limited to no more often  than once per fiscal year.  In addition, any such representative shall have the right to meet with  management and officers of Borrower to discuss such books of account and records at reasonable  times and upon reasonable notice.  In addition, Agent or the Lenders shall be entitled at reasonable  times and intervals to consult with and advise the management and officers of Borrower concerning  significant business issues affecting Borrower.  Such consultations shall not unreasonably interfere  with Borrower’s business operations.  The parties intend that the rights granted Agent and the  Lenders shall constitute “management rights” within the meaning of 29 C.F.R. Section 2510.3- 101(d)(3)(ii), but that any advice, recommendations or participation by Agent or the Lenders with  respect to any business issues shall not be deemed to give Agent or any Lender, nor be deemed an  exercise by Agent or any Lender of, control over Borrower’s management or policies.   7.3 Further Assurances.  Borrower shall, from time to time execute, deliver and file,  alone or with Agent, any financing statements, security agreements, collateral assignments, notices,  control agreements, promissory notes or other documents to perfect, give the highest priority to  Agent’s Lien on the Collateral or otherwise evidence Agent’s rights herein, in each case, as  reasonably requested by Agent.  Borrower shall from time to time procure any instruments or  documents as may be reasonably requested by Agent, and take all further action that may be  necessary, or that Agent may reasonably request, to perfect and protect the Liens granted hereby  or  pursuant to the applicable Loan Documents.  In addition, and for such purposes only, Borrower  hereby authorizes Agent to execute and deliver on behalf of Borrower and to file such financing  statements (including an indication that the financing statement covers “all assets or all personal  property” of Borrower in accordance with Section 9-504 of the UCC), and Borrower hereby  authorizes Agent, at any time during the existence of an Event of Default, to execute and deliver on  behalf of Borrower any collateral assignments, notices, control agreements, security agreements and  other documents without the signature of Borrower either in Agent’s name or in the name of Agent  as agent and attorney-in-fact for Borrower.  Borrower shall in good faith and in its reasonable  commercial discretion, in each case, subject to the terms of this Agreement, protect and defend  Borrower’s title to the Collateral and Agent’s Lien thereon against all Persons claiming any interest  adverse to Borrower or Agent other than Permitted Liens.    

 

      7.4 Indebtedness.  Borrower shall not (a) create, incur, assume, guarantee or be or  remain liable with respect to any Indebtedness, or permit any Subsidiary so to do, other than  Permitted Indebtedness, or (b) prepay any Indebtedness or take any actions which impose on  Borrower an obligation to prepay any Indebtedness, except for (i) the conversion of Indebtedness  into equity securities and the payment of cash in lieu of fractional shares in connection with such  conversion, (ii) purchase money Indebtedness and capital leases pursuant to its then applicable  payment schedule, (iii) prepayment by any Subsidiary of (A) inter-company Indebtedness owed by  such Subsidiary to any Borrower, or (B) if such Subsidiary is not a Borrower, intercompany  Indebtedness owed by such Subsidiary to another Subsidiary that is not a Borrower, (iv) as may be  permitted under any Subordination Agreement, the Permitted Senior Revolving Loan Intercreditor  Agreement, as otherwise permitted hereunder or as approved in writing by Agent, (v) Indebtedness  owed under corporate credit cards constituting “Permitted Indebtedness” and prepaid in the ordinary  course of business, (vi) Permitted Indebtedness with the proceeds of Permitted Indebtedness or (vii)  prepayment of Indebtedness permitted under clauses (i), (iv), (vii), (viii) and (xii) of “Permitted  Indebtedness”.  Notwithstanding the foregoing, and for the avoidance of doubt, this Section 7.4 shall not  prohibit the conversion by holders of (including any payment upon conversion, whether in cash,  Common Stock or a combination thereof), or required payment of any principal or premium on  (including, for the avoidance of doubt, in respect of a repurchase in connection with the redemption  of convertible notes issued in a Permitted Convertible Debt Financing upon satisfaction of a  condition related to the stock price of the Common Stock) or required payment of any interest with  respect to, any Permitted Convertible Debt Financing in each case, in accordance with the terms of  the indenture governing such Permitted Convertible Debt Financing; provided that principal  payments in cash (other than cash in lieu of fractional shares) shall only be allowed if the  Redemption Conditions are satisfied in respect of such payment both immediately before and at all  times after such payment; provided further that, to the extent both (a) the aggregate amount of cash  payable upon conversion or payment of any Permitted Convertible Debt Financing (excluding any  required payment of interest with respect to such Permitted Convertible Debt Financing and  excluding any payment of cash in lieu of a fractional share due upon conversion thereof) exceeds  the aggregate principal amount thereof and (b) such conversion or payment does not trigger or  correspond to an exercise or early unwind or settlement of a corresponding portion of the Permitted  Bond Hedge Transactions relating to such Permitted Convertible Debt Financing (including, for the  avoidance of doubt, the case where there is no Bond Hedge Transaction relating to such Permitted  Convertible Debt Financing), the payment of such excess cash shall not be permitted by the  preceding sentence.  Notwithstanding the foregoing, Borrower may repurchase, exchange or induce the  conversion of all or a portion of the convertible notes issued in a Permitted Convertible Debt  Financing by delivery of shares of Common Stock and/or a different series of Permitted Convertible  Debt Financing and/or by payment of cash (in an amount that does not exceed the proceeds received  by Borrower from the substantially concurrent issuance of Common Stock and/or Permitted  Convertible Debt Financing (or a permitted refinancing thereof) plus the net cash proceeds, if any,  received by Borrower pursuant to the related exercise or early unwind or termination of the related  Permitted Bond Hedge Transactions and Permitted Warrant Transactions, if any, pursuant to the  immediately following proviso); provided that, substantially concurrently with, or a commercially  reasonable period of time before or after, the related settlement date for the convertible notes issued  in a Permitted Convertible Debt Financing that is so repurchased, exchanged or converted,  Borrower shall exercise or unwind or terminate early (whether in cash, shares or any combination  thereof) the portion of the Permitted Bond Hedge Transactions and Permitted Warrant  

 

      Transactions, if any, corresponding to such Permitted Convertible Debt Financing that are so  repurchased, exchanged or converted.  7.5 Collateral.  Borrower shall at all times keep the Collateral and all other property and  assets used in Borrower’s business or in which Borrower now or hereafter holds any interest free and  clear from any Liens whatsoever (except for Permitted Liens), and shall give Agent prompt written  notice of any legal process that is reasonably likely to result in damages, expenses or liabilities in  excess of $[**] affecting the Collateral, such other property and assets, or any Liens thereon, provided  however, that the Collateral and such other property and assets may be subject to Permitted Liens,  provided, however, that there shall be no Liens whatsoever on Intellectual Property other than  Permitted Liens pursuant to clause (xviii) of such definition.  Borrower shall not agree with any  Person other than Agent or the Lenders not to encumber its property other than in connection with  Permitted Liens. Borrower shall not enter into or suffer to exist or become effective any agreement  that prohibits or limits the ability of any Borrower to create, incur, assume or suffer to exist any Lien  upon any of its property (including Intellectual Property), whether now owned or hereafter acquired,  to secure its obligations under the Loan Documents to which it is a party other than (a) this  Agreement and the other Loan Documents, (b) any agreements governing any purchase money Liens  or capital lease obligations otherwise permitted hereby (in which case, any prohibition or limitation  shall only be effective against the assets financed thereby) and (c) customary restrictions on the  assignment of leases, licenses and other agreements. Borrower shall cause its Subsidiaries to protect  and defend such Subsidiary’s title to its assets from and against all Persons claiming any interest  adverse to such Subsidiary, and Borrower shall cause its Subsidiaries at all times to keep such  Subsidiary’s property and assets free and clear from any legal process or Liens whatsoever (except  for Permitted Liens, provided however, that there shall be no Liens whatsoever on Intellectual  Property other than Permitted Liens pursuant to clause (xviii) of such definition), and shall give Agent  prompt written notice of any legal process affecting such Subsidiary’s assets that is reasonably likely  to result in damages, expenses or liabilities in excess of $[**].   7.6 Investments.  Borrower shall not directly or indirectly acquire or own, or make any  Investment in or to any Person, or permit any of its Subsidiaries to do so, other than Permitted  Investments.  Notwithstanding the foregoing, and for the avoidance of doubt, this Section 7.6 shall not  prohibit (i) the conversion by holders of (including any cash payment upon conversion), or required  payment of any principal or premium on (including, for the avoidance of doubt, in respect of a  repurchase in connection with the redemption of convertible notes issued in a Permitted Convertible  Debt Financing upon satisfaction of a condition related to the stock price of Common Stock) or  required payment of any interest with respect to, any Permitted Convertible Debt Financing in each  case, in accordance with the terms of the indenture governing such Permitted Convertible Debt  Financing; provided that principal payments in cash (other than cash in lieu of fractional shares)  shall be allowed with respect to any repurchase in connection with the redemption of Permitted  Convertible Debt Financing upon satisfaction of a condition related to the stock price of Common  Stock only if the Redemption Conditions are satisfied in respect of such redemption both  immediately before and at all times after such redemption, or (ii) the entry into (including the  payment of premiums in connection therewith) or any required payment with respect to, or required  early unwind or settlement of, any Permitted Bond Hedge Transaction or Permitted Warrant  Transaction, in each case, in accordance with the terms of the agreement governing such warrant,  Permitted Bond Hedge Transaction or Permitted Warrant Transaction.  Notwithstanding the foregoing, Borrower may repurchase, exchange or induce the  conversion of all or a portion of the convertible notes issued in a Permitted Convertible Debt  

 

      Financing by delivery of shares of Common Stock and/or a different series of Permitted Convertible  Debt Financing and/or by payment of cash (in an amount that does not exceed the proceeds received  by Borrower from the substantially concurrent issuance of shares of Common Stock and/or  Permitted Convertible Debt Financing (or a permitted refinancing thereof)  plus the net cash  proceeds, if any, received by Borrower pursuant to the related exercise or early unwind or  termination of the related Permitted Bond Hedge Transactions and Permitted Warrant Transactions,  if any, pursuant to the immediately following proviso); provided that, for the avoidance of doubt,  substantially concurrently with, or a commercially reasonable period of time before or after, the  related settlement date for the convertible notes issued in a Permitted Convertible Debt Financing  that are so repurchased, exchanged or converted, Borrower may exercise or unwind or terminate  early (whether in cash, shares or any combination thereof) the portion of the Permitted Bond Hedge  Transactions and Permitted Warrant Transactions, if any, corresponding to such Permitted  Convertible Debt Financing that are so repurchased, exchanged or converted.  7.7 Distributions.  Borrower shall not, and shall not allow any Subsidiary to, (a)  repurchase or redeem any class of stock or other Equity Interest other than pursuant to employee,  director or consultant repurchase plans or other similar agreements, provided, however, in each case  the repurchase or redemption price does not exceed the original consideration paid for such stock or  Equity Interest unless required by the terms of such agreement or plan, or pursuant to a public  repurchase of securities in compliance with the requirements of SEC Rule 10b-18, or (b) declare or  pay any cash dividend or make any other cash distribution on any class of stock or other Equity  Interest, except that a Subsidiary may pay dividends or make other distributions to Borrower or any  Subsidiary of Borrower, or (c) except for Permitted Investments, lend money to any employees,  officers or directors or guarantee the payment of any such loans granted by a third party in excess  of $[**] in the aggregate or (d) waive, release or forgive any Indebtedness owed by any employees,  officers or directors in excess of $[**] in the aggregate other than cancellation of Indebtedness in  connection with the repurchase of Equity Interests permitted under clause (a) above or clause (iii)  of “Permitted Investments”.  Notwithstanding the foregoing, Borrower may redeem or repurchase a  Permitted Convertible Debt Financing, so long as the Redemption Conditions (as applied to such  redemption or repurchase) are satisfied both immediately before and at all times after such  redemption or repurchase.  Notwithstanding the foregoing, and for the avoidance of doubt, this Section 7.7 shall not  prohibit (i) the conversion by holders of (including any cash payment upon conversion), or required  payment of any principal or premium on (including, for the avoidance of doubt, in respect of a  repurchase in connection with the redemption of all or a portion of the convertible notes issued in  a Permitted Convertible Debt Financing upon satisfaction of a condition related to the stock price  of Common Stock) or required payment of any interest with respect to any Permitted Convertible  Debt Financing, in each case, in accordance with the terms of the indenture governing such  Permitted Convertible Debt Financing, (ii) the entry into (including the payment of premiums in  connection therewith) or any required payment with respect to, or required early unwind or  settlement of, any Permitted Bond Hedge Transaction or Permitted Warrant Transaction, in each  case, in accordance with the terms of the agreement governing such Permitted Bond Hedge  Transaction or Permitted Warrant Transaction, or (iii) the withholding of shares of common stock  upon the vesting of restricted stock units and performance stock units issued to Borrower’s  employees under Borrower’s equity incentive plan upon vesting of such stock units and any related  cash payments required to be paid to such employees and or any governmental authority on account  of Taxes related thereto, in each case in the ordinary course of business of Borrower.  

 

      Notwithstanding the foregoing, Borrower may repurchase, exchange or induce the  conversion of all or a portion of the convertible notes issued in a Permitted Convertible Debt  Financing by delivery of Common Stock and/or a different series of Permitted Convertible Debt  Financing and/or by payment of cash (in an amount that does not exceed the proceeds received by  Borrower from the substantially concurrent issuance of Common Stock and/or Permitted  Convertible Debt Financing (or a permitted refinancing thereof) plus the net cash proceeds, if any,  received by Borrower pursuant to the related exercise or early unwind or termination of the related  Permitted Bond Hedge Transactions and Permitted Warrant Transactions, if any, pursuant to the  immediately following proviso); provided that, substantially concurrently with, or a commercially  reasonable period of time before or after, the related settlement date for the convertible notes issued  in a Permitted Convertible Debt Financing that is so repurchased, exchanged or converted,  Borrower shall exercise or unwind or terminate early (whether in cash, shares or any combination  thereof) the portion of the Permitted Bond Hedge Transactions and Permitted Warrant  Transactions, if any, corresponding to such Permitted Convertible Debt Financing that are so  repurchased, exchanged or converted.  Notwithstanding anything to the contrary set forth in this Section 7.7, and for the avoidance  of doubt:   (i)         Borrower may make any required payment of premium to a counterparty thereunder  due in connection with entering into any Permitted Bond Hedge Transaction;  (ii)       Borrower may make any payment in connection with any Permitted Warrant  Transaction by (i) delivery of shares of Borrower’s Common Stock (together with cash in lieu of  fractional shares) upon net share settlement thereof, (ii) set-off, netting and/or payment of an early  termination payment or other payment thereunder, in each case, in Borrower’s Common Stock and  (iii) solely to the extent Borrower does not have the option of satisfying such payment obligations  through the delivery of shares of Borrower’s Common Stock or is otherwise required to satisfy  such payment obligations in cash, set-off, netting and/or payment of an early termination payment  or other payment thereunder, in each case, in cash (it being understood and agreed that any payment  made in cash in connection with Permitted Warrant Transactions by set-off, netting and/or payment  of an early termination payment or similar payment thereunder, in each case, after using  commercially reasonable efforts to satisfy such obligation (or the portion thereof remaining after  giving effect to any netting or set-off against termination or similar payments under an applicable  Permitted Bond Hedge Transaction) by delivery of shares of Borrower’s Common Stock shall be  deemed to be a payment obligation required to be satisfied in cash); and  (iii)         Borrower may acquire shares or other Equity Interests or cash or a combination  thereof under the terms of any Permitted Bond Hedge Transaction or Permitted Warrant  Transaction.  7.8 Transfers.  Except for Permitted Transfers, Borrower shall not, and shall not allow  any Subsidiary to, voluntarily or involuntarily transfer, sell, lease, license, lend or in any other  manner convey (“Transfer”) any equitable, beneficial or legal interest in any material portion of its  assets.  Notwithstanding the foregoing, and for the avoidance of doubt, this Section 7.8 shall not  prohibit the conversion by holders of any Permitted Convertible Debt Financing in accordance with  the terms of the indenture governing such Permitted Convertible Debt Financing or Borrower’s  delivery of the conversion consideration in connection therewith or the delivery of Common Stock,  

 

      and Cash in lieu of fractional shares of Common Stock in exchange for, or to induce conversions  of, Permitted Convertible Debt Financing.  7.9 Mergers and Consolidations.  Except for Permitted Acquisitions, Borrower shall not  merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with or into any  other business organization (other than mergers or consolidations of (a) a Subsidiary which is not a  Borrower into another Subsidiary or into Borrower or (b) a Borrower into another Borrower).  7.10 Taxes.  Borrower shall, and shall cause each of its Subsidiaries to, pay when due all  material Taxes of any nature whatsoever now or hereafter imposed or assessed against Borrower or  such Subsidiary or the Collateral or upon Borrower’s (or such Subsidiary’s) ownership, possession,  use, operation or disposition thereof or upon Borrower’s (or such Subsidiary’s) rents, receipts or  earnings arising therefrom.  Borrower shall, and shall cause each of its Subsidiaries to, accurately  file on or before the due date therefor (taking into account proper extensions) all federal and state  income Tax returns and other material Tax returns required to be filed.  Notwithstanding the  foregoing, Borrower and its Subsidiaries may contest, in good faith and by appropriate proceedings  diligently conducted, Taxes for which Borrower and its Subsidiaries maintain adequate reserves in  accordance with GAAP.  7.11 Corporate Changes.    (a) Neither Borrower nor any Subsidiary shall change its corporate name, legal form  or jurisdiction of formation without twenty (20) days’ prior written notice to Agent.    (b) Neither Borrower nor any Subsidiary shall suffer a Change in Control.   (c) Neither Borrower nor any Subsidiary shall relocate its chief executive office or its  principal place of business unless: (i) it has provided prior written notice to Agent; and (ii) such  relocation shall be (x) within the continental United States of America and (y) with respect to any  Subsidiary of Borrower, Ireland or within the same country as its previous location.   (d) If Borrower intends to add any new offices or business locations, including  warehouses, containing any portion of Borrower’s assets or property valued, individually or in the  aggregate, in excess of $[**] (other than business locations or warehouses holding primarily (i)  works-in-progress, raw materials or otherwise in the supply chain for commercial manufacturing  or sale of Borrower Product or (ii) assets in connection with clinical and pre-clinical studies,  including contract manufacturing organizations, distribution service firms, contract research  organizations, clinical sites, clinical investigators and other institutions), then Borrower will use  commercially reasonable efforts to cause the landlord of any such new offices or business locations,  including warehouses, to execute and deliver a landlord consent in form and substance satisfactory  to Agent.    (e) Unless waived by Agent in its sole discretion, if Borrower intends to deliver any  portion of Borrower’s assets or property valued, individually or in the aggregate, in excess of $[**]  to a bailee (other than bailees or other third parties in possession of (i) works-in-progress, raw  materials or otherwise in the supply chain for commercial manufacturing or sale of Borrower  Product or (ii) assets in connection with clinical and pre-clinical studies, including contract  manufacturing organizations, distribution service firms, contract research organizations, clinical  sites, clinical investigators and other institutions), and Agent and such bailee are not already parties  to a bailee agreement governing both the Collateral and the location to which Borrower intends to  

 

      deliver the Collateral, then Borrower will use commercially reasonable efforts to cause such bailee  to execute and deliver a bailee agreement in form and substance satisfactory to Agent.  7.12 Deposit Accounts.    (a) Commencing on the date that is one (1) year after the Closing Date, Borrower shall  (a) maintain, and shall cause each of its Subsidiaries (other than each Excluded Subsidiary) to  maintain, all of their respective operating accounts, depository accounts and excess cash located in  the United States with SVB or an Affiliate thereof and (b) obtain, and cause each of its Subsidiaries  to obtain, any business credit card, letter of credit and other material cash management services in  the United States exclusively from SVB or an Affiliate thereof.  (b) Other than Excluded Accounts, neither Borrower nor any Subsidiary (other than  any Excluded Subsidiary) shall maintain any Deposit Accounts, or accounts holding Investment  Property, except with respect to which Agent has an Account Control Agreement.  Borrower shall  not permit Excluded Subsidiaries to maintain Cash balances in excess of $[**] at any time.  7.13 Joinder.  Borrower shall notify Agent of each Subsidiary formed or acquired  subsequent to the Closing Date and, within 20 days of formation or acquisition, shall cause any such  Subsidiary (other than an Excluded Subsidiary) to execute and deliver to Agent a Joinder  Agreement. If at any time, the Excluded Subsidiary Condition is not satisfied, Borrower shall  promptly cause one or more Subsidiaries to execute and deliver to Agent a Joinder Agreement and  such other documents governed by the local law of the jurisdiction of organization of such  Subsidiary reasonably requested by Agent in order for the Secured Obligations to be secured by a  first priority perfected Lien in favor of Agent of substantially all of the assets of such Subsidiary  (other than Excluded Collateral), such that, after giving effect to such Joinder Agreement, the  Excluded Subsidiary Condition is satisfied.  7.14 Regulatory and Product Notices.  Borrower shall promptly (but in any event  within three (3) Business Days) after the receipt or occurrence thereof notify Agent of:    (a)  any written notice received by Borrower or its Subsidiaries from a governmental  authority alleging potential or actual violations of any FDA Laws or Federal Health Care Program  Laws by Borrower or its Subsidiaries,  (b) any written notice from the FDA that the FDA (or international equivalent) is  limiting, suspending or revoking any Registrations (including, but not limited to, the issuance of a  clinical hold),  (c) any written notice from a governmental authority that Borrower or its Subsidiaries  has become subject to any Regulatory Action,  (d) any written notice from the FDA indicating the exclusion or debarment from any  governmental healthcare program or debarment or disqualification by FDA (or international  equivalent) of Borrower or its Subsidiaries,  (e) any written notice from a governmental authority that any product of Borrower or  its Subsidiaries has been seized, withdrawn, recalled, detained, or subject to a  suspension of manufacturing, or the commencement of any proceedings in the United  States or any other jurisdiction seeking the withdrawal, recall, suspension, import  

 

      detention, or seizure of any Borrower Product are pending or threatened in writing  against Borrower or its Subsidiaries, or  (f) any written notice from the FDA narrowing or otherwise limiting the scope of  marketing authorization or the labeling of the products of Borrower and its  Subsidiaries under any such Registration,   except, in each case of (a) through (f) above, where such action would not reasonably be expected  to have, either individually or in the aggregate, any Material Regulatory Liabilities.   7.15 Notification of Event of Default.  Borrower shall notify Agent immediately of the  occurrence of any Event of Default.  7.16 Use of Proceeds.  Borrower agrees that the proceeds of the Loans shall be used  solely to pay fees and expenses in connection with this Agreement and for working capital and  general corporate purposes.  The proceeds of the Loans Credit will not be used in violation of Anti- Corruption Laws or applicable Sanctions.  7.17 Compliance with Laws.  Borrower shall maintain, and shall cause its Subsidiaries to maintain, compliance  in all material respects with all applicable laws, rules or regulations (including any law, rule or  regulation with respect to the making or brokering of loans or financial accommodations), and shall,  or cause its Subsidiaries to, obtain and maintain all required governmental authorizations, approvals,  licenses, franchises, permits or registrations reasonably necessary in connection with the conduct of  Borrower’s business.  Borrower shall not become an “investment company” or a company controlled  by an “investment company”, under the Investment Company Act of 1940, as amended, or undertake  as one of its important activities extending credit to purchase or carry margin stock (as defined in  Regulation X, T and U of the Federal Reserve Board of Governors).  Neither Borrower nor any of its Subsidiaries shall, nor shall Borrower or any of its  Subsidiaries permit any Affiliate to, directly or indirectly, knowingly enter into any documents,  instruments, agreements or contracts with any Person listed on the OFAC Lists.  Neither Borrower  nor any of its Subsidiaries shall, nor shall Borrower or any of its Subsidiaries, permit any Affiliate  to, directly or indirectly, (i) conduct any business or engage in any transaction or dealing with any  Blocked Person, including, without limitation, the making or receiving of any contribution of funds,  goods or services to or for the benefit of any Blocked Person, (ii) deal in, or otherwise engage in any  transaction relating to, any property or interests in property blocked pursuant to Executive Order  No. 13224 or any similar executive order or other Anti-Terrorism Law, or (iii) engage in or conspire  to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or  attempts to violate, any of the prohibitions set forth in Executive Order No. 13224 or other  Anti-Terrorism Law.  Borrower has implemented and shall maintain in effect policies and procedures  designed to ensure compliance by Borrower, its Subsidiaries and their respective directors, officers,  employees and agents with Anti-Corruption Laws and applicable Sanctions, and Borrower, its  Subsidiaries and their respective officers and employees and to the knowledge of Borrower its  directors and agents, are in compliance with Anti-Corruption Laws and applicable Sanctions in all  material respects.  

 

      None of Borrower, any of its Subsidiaries or any of their respective directors, officers  or employees, or to the knowledge of Borrower, any agent for Borrower or its Subsidiaries that will  act in any capacity in connection with or benefit from the credit facility established hereby, is a  Sanctioned Person.  No Loan, use of proceeds or other transaction contemplated by this Agreement  will violate Anti-Corruption Laws or applicable Sanctions.  7.18 Financial Covenants.  (a) Minimum Cash.    (i) Borrower shall maintain at all times during the period commencing on  May 15, 2023 and ending on August 14, 2024, Qualified Cash in an amount greater than  or equal to $[**].  (ii) If Borrower makes any redemption, repurchase or payment in respect of  the last sentence of the first paragraph of Section 7.7 or makes any other cash payment  (other than cash in lieu of fractional shares) in respect of a Permitted Convertible Debt  Financing, subject to satisfaction of the Redemption Conditions, Borrower shall, both  immediately before giving effect to such redemption, repurchase or payment and at all  times thereafter, maintain Qualified Cash in the amount required by the defined term  “Redemption Conditions”.  (b) Minimum Zimura Product Sales.  Beginning on the date upon which financial  statements are required to be delivered pursuant to Section 7.1(b) for the period ending June 30,  2024, and measured as of the last day of each quarter and tested upon delivery of the financial  statements delivered in accordance with Section 7.1(b), Borrower shall maintain at all times on and  after August 15, 2024, net product sales of Zimura (calculated in accordance with GAAP on a  trailing six month basis) in an amount greater than or equal to the amount set forth on Schedule  7.18 corresponding to the applicable period (the “Minimum Zimura Product Sales Covenant”).    Notwithstanding the foregoing, the Minimum Zimura Product Sales Covenant  shall not apply at any time in which Borrower (x) (i) maintains a Market Capitalization in excess  of $600,000,000 and (ii) maintains Qualified Cash in an amount greater than or equal to fifty  percent (50%) of the outstanding Term Loan Advances at such time or (y) maintains Qualified  Cash in an amount equal greater than or equal to ninety percent (90%) of the outstanding Term  Loan Advances at such time (the “Waiver Condition”).  For the avoidance of doubt, the Waiver  Condition is subject to satisfaction on a daily basis, and if Borrower fails to satisfy either the  preceding clause (x) or (y) of the Waiver Condition as of any day, Borrower shall be required to  demonstrate compliance with the Minimum Zimura Product Sales Covenant.    7.19 Intellectual Property.  Each Borrower shall (i) protect, defend and maintain the  validity and enforceability of its material Intellectual Property; (ii) promptly advise Agent in writing  of material infringements of its Intellectual Property of which it has knowledge; and (iii) not allow  any Intellectual Property material to Borrowers’ business to be abandoned, forfeited or dedicated to  the public without Agent’s written consent.  If a Borrower (a) 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 (b) applies for any Patent or the registration  of any Trademark, then such Borrower shall concurrently with the delivery of the next Compliance  Certificate required under Section 7.1(d), provide written notice thereof to Agent and shall execute  such intellectual property security agreements and other documents and take such other actions as  Agent may request in its good faith business judgment to perfect and maintain a first priority  

 

      perfected security interest in favor of Agent in such property.  If a Borrower decides to register any  Copyrights or mask works in the United States Copyright Office, such Borrower shall: (x) provide  Agent with at least fifteen (15) days prior written notice of such 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 Agent may request in its good  faith business judgment to perfect and maintain a first priority perfected security interest in favor of  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.  Borrowers shall, concurrently with the delivery of the next Compliance  Certificate required under Section 7.1(d), provide to 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 Agent to perfect and  maintain a first priority perfected security interest in such property.  Borrower shall, concurrently  with the delivery of the next Compliance Certificate required under Section 7.1(d), provide written  notice to Agent of entering or becoming bound by any Restricted License (other than over-the- counter software that is commercially available to the public and any Restricted License in effect on  the date hereof and set forth on Schedule 7.19).  Borrower shall use its commercially reasonable  efforts to take such steps as Agent reasonably requests to obtain the consent of, or waiver by, any  person whose consent or waiver is necessary for (1) any Restricted License (other than over-the- counter software that is commercially available to the public and any Restricted License in effect on  the date hereof and set forth on Schedule 7.19) to be deemed “Collateral” and for Agent to have a  security interest in it that might otherwise be restricted or prohibited by law or by the terms of any  such Restricted License, whether now existing or entered into in the future, and (2) Agent to have  the ability in the event of a liquidation of any Collateral to dispose of such Collateral in accordance  with Agent’s rights and remedies under this Agreement and the other Loan Documents.  7.20 Transactions with Affiliates.  Borrower shall not and shall not permit any Subsidiary  to, directly or indirectly, enter into or permit to exist any transaction of any kind with any Affiliate  of Borrower or such Subsidiary, except for (a) transactions on terms that are no less favorable to  Borrower or such Subsidiary, as the case may be, than those that might be obtained in an arm’s  length transaction from a Person who is not an Affiliate of Borrower or such Subsidiary, (b) to the  extent approved by Borrower’s board of directors, the payment of reasonable fees to directors of  Borrower who are not employees of Borrower or any Subsidiary, and compensation and employee  benefit arrangements paid to, and indemnities provided for the benefit of, directors, officers or  employees of Borrower or its Subsidiaries in the ordinary course of business, (c) any contribution  to the capital of Borrower or any purchase of Equity Interests of Borrower, in each case solely to the  extent such transaction does not cause a Change in Control to occur, (d) any intercompany  arrangement entered into in the ordinary course of business and not prohibited hereunder, and (e)  transactions expressly permitted by Section 7.   7.21 Material Agreement. Borrower (a) shall not, without the consent of Agent, terminate  any Specified License or amend any Specified License in a manner that is reasonably likely to have  a material negative impact on Agent or Lenders and (b) shall give prompt written notice to Agent of  entering into a Material Agreement or materially amending or terminating a Material Agreement.  SECTION 8.  RIGHT TO INVEST  8.1 Borrower shall provide (or in the case of a Subsequent Financing that is a registered  offering, Borrower shall use its commercially reasonable efforts to provide) the Lenders or their  

 

      permitted assignees or nominees, designated as such in writing to Borrower, the opportunity, in their  discretion, to participate in any Subsequent Financing in an aggregate amount of up to $10,000,000,  in the aggregate for all Lenders and their permitted assignees or nominees, on a pro rata basis  according to the Term Commitments of the relevant Lender and its Affiliates and on the same terms,  conditions and pricing afforded to others participating in any such Subsequent Financing.  If the  Lenders (or their permitted assignees or nominees) elect to participate in any Subsequent Financing,  the Lenders (or their permitted assignees or nominees, as applicable) participating in such  Subsequent Financing agree to become a party to the agreements executed by the other investors  participating in such Subsequent Financing, including with respect to obligations of confidentiality  or as may otherwise be required by the Securities Act of 1933, as amended, and the rules and  regulations promulgated by the Securities and Exchange Commission thereunder.  Borrower, or an  investment bank or underwriter engaged on Borrower’s behalf, shall provide the Lenders or their  permitted assignees or nominees at least one (1) Business Day’s written notice of any planned  Subsequent Financing and the opportunity to exercise the right to invest under this Section 8.1 with  respect to any such Subsequent Financing.  This Section 8.1, and all rights and obligations  hereunder, shall terminate upon the earliest to occur of (a) termination of this Agreement or (b) such  time that the Lenders or their permitted assignees or nominees have purchased $10,000,000 of  Borrower’s Equity Interests in the aggregate in Subsequent Financings.  SECTION 9.  EVENTS OF DEFAULT  The occurrence of any one or more of the following events shall be an Event of Default:  9.1 Payments.  Borrower fails to pay any amount due under this Agreement or any of  the other Loan Documents on the due date; provided, however, that an Event of Default shall not  occur on account of a failure to pay due solely to an administrative or operational error of Agent or  the Lenders or Borrower’s bank if Borrower had the funds to make the payment when due and makes  the payment within three (3) Business Days following Borrower’s knowledge of such failure to pay;  or  9.2 Covenants.  Borrower breaches or defaults in the performance of any covenant or  Secured Obligation under this Agreement, or any of the other Loan Documents or any other  agreement among Borrower, Agent and the Lenders, and (a) with respect to a default under any  covenant under this Agreement (other than under Sections 6, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.15, 7.16,  7.17, 7.18, 7.19, 7.20, and 7.21), any other Loan Document, or any other agreement among  Borrower, Agent and the Lenders, such default continues for more than fifteen (15) Business Days  after the earlier of the date on which (i) Agent or the Lenders has given notice of such default to  Borrower and (ii) Borrower has actual knowledge of such default or (b) with respect to a default  under any of Sections 6, 7.4, 7.5, 7.6, 7.7, 7.8, 7.9, 7.15, 7.16, 7.17, 7.18, 7.19, 7.20 and 7.21, the  occurrence of such default; or   9.3 Material Adverse Effect.  A circumstance has occurred that could reasonably be  expected to have a Material Adverse Effect; provided that the occurrence of the following, either  individually or in combination with one another, shall not, in and of itself, constitute a “Material  Adverse Effect” hereunder:  (i) the failure to achieve Performance Milestone 1, Performance  Milestone 2 and/or Performance Milestone 3, (ii) adverse results or delays with respect to, or the  failure to achieve, any clinical or non-clinical trial goals or objectives, (iii) the denial, delay or  limitation or qualification of approval of the FDA or other regulatory agency with respect to any  proposed drug or other Borrower Product, (iv) any revisions to or termination of a strategic alliance,  joint venture, co-promotion, co-commercialization or co-development agreements or license  arrangement maintained by Borrower so long as the same does not affect the ability of Borrower to  

 

      perform the Secured Obligations or (v) any delay or failure in scaling up or validating manufacturing  processes or any supply or batch failure of any Borrower Product; or  9.4 Representations.  Any representation or warranty made by Borrower in any Loan  Document shall have been false or misleading in any material respect when made or when deemed  made; or   9.5 Insolvency.  Borrower (A) (i) shall make an assignment for the benefit of creditors;  or (ii) shall be unable to pay its debts as they become due, or be unable to pay or perform under the  Loan Documents, or shall become insolvent; or (iii) shall file a voluntary petition in bankruptcy; or  (iv) shall file any petition, answer, or document seeking for itself any reorganization, arrangement,  composition, readjustment, liquidation, dissolution or similar relief under any present or future  statute, law or regulation pertinent to such circumstances; or (v) shall seek or consent to or acquiesce  in the appointment of any trustee, receiver, or liquidator of Borrower or of all or any substantial part  (i.e., 33-1/3% or more) of the assets or property of Borrower; or (vi) shall cease operations of its  business as its business has normally been conducted, or terminate substantially all of its employees;  or (vii) Borrower or its directors or majority shareholders shall take any action initiating any of the  foregoing actions described in clauses (i) through (vi); or (B) either (i) forty-five (45) days shall  have expired after the commencement of an involuntary action against Borrower seeking  reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief  under any present or future statute, law or regulation, without such action being dismissed or all  orders or proceedings thereunder affecting the operations or the business of Borrower being stayed;  or (ii) a stay of any such order or proceedings shall thereafter be set aside and the action setting it  aside shall not be timely appealed; or (iii) Borrower shall file any answer admitting or not contesting  the material allegations of a petition filed against Borrower in any such proceedings; or (iv) the court  in which such proceedings are pending shall enter a decree or order granting the relief sought in any  such proceedings; or (v) forty-five (45) days shall have expired after the appointment, without the  consent or acquiescence of Borrower any trustee, receiver or liquidator of Borrower or of all or any  substantial part of the properties of Borrower without such appointment being vacated; or  9.6 Attachments; Judgments.  Any portion of Borrower’s assets in an aggregate value  of $[**] or more is attached or seized, or a levy is filed against any such assets, or a judgment or  judgments either by a court of competent jurisdiction or by a regulatory agency with the power to  do so is/are entered for the payment of money (not covered by independent third party insurance as  to which liability has not been rejected by such insurance carrier), individually or in the aggregate,  of at least $[**], or Borrower is enjoined or in any way prevented by court order from conducting  any part of its business; or    9.7 Other Obligations.    (a) The occurrence of any default in the payment of any Indebtedness under any  agreement or obligation of Borrower involving any Indebtedness in excess of $[**] beyond the  period of grace, if any, provided in the instrument or agreement under which such Indebtedness;  (b) the occurrence of any default (other than a default resulting from the occurrence of  the following, either individually or in combination with one another:  (i) the failure to achieve  Performance Milestone 1, Performance Milestone 2 and/or Performance Milestone 3, (ii) adverse  results or delays with respect to, or the failure to achieve, any clinical or non-clinical trial goals or  objectives, (iii) the denial, delay or limitation or qualification of approval of the FDA or other  regulatory agency with respect to any proposed drug or other Borrower Product, (iv) any revisions  to or termination of a strategic alliance, joint venture, co-promotion, co-commercialization or co- 

 

      development agreements or license arrangement maintained by Borrower so long as the same does  not affect the ability of Borrower to perform the Secured Obligations or (v) any delay or failure in  scaling up or validating manufacturing processes or any supply or batch failure of any Borrower  Product) under any Material Agreement beyond the period of grace, if any, provided in such  Material Agreements; or.  (c) the occurrence of any early payment is required or unwinding or termination  occurs with respect to any Permitted Bond Hedge Transaction or Permitted Warrant Transaction,  or any condition giving rise to the foregoing is met, in each case, with respect to which Borrower  or its Affiliate is the “affected party” or “defaulting party” under the terms of such Permitted Bond  Hedge Transaction or Permitted Warrant Transaction, if a Material Adverse Effect could  reasonably be expected to result from such default, early payment, unwinding or termination.  9.8 Permitted Senior Revolving Loan Credit Agreement.  The occurrence of any  Default or Event of Default (each as defined in the Permitted Senior Revolving Loan Credit  Agreement), shall occur and be continuing.  SECTION 10.  REMEDIES  10.1 General.  Upon the occurrence and during the continuation of any one or more  Events of Default, Agent, as directed by each Lender in accordance with Addendum 4 or, if such  rights and remedies are not addressed in Addendum 4, as directed by the Required Lenders, shall  accelerate and demand payment of all or any part of the Secured Obligations together with a  Prepayment Charge and declare them to be immediately due and payable (provided, that upon the  occurrence of an Event of Default of the type described in Section 9.5, all of the Secured Obligations  (including, without limitation, the Prepayment Charge and the End of Term Charge) shall  automatically be accelerated and made due and payable, in each case without any further notice or  act).  Borrower hereby irrevocably appoints Agent as its lawful attorney-in-fact to:  exercisable  following the occurrence of an Event of Default, (i) sign Borrower’s name on any invoice or bill of  lading for any account or drafts against account debtors; (ii) demand, collect, sue, and give releases  to any account debtor for monies due, settle and adjust disputes and claims about the accounts  directly with account debtors, and compromise, prosecute, or defend any action, claim, case, or  proceeding about any Collateral (including filing a claim or voting a claim in any bankruptcy case  in Agent’s or Borrower’s name, as Agent may elect); (iii) make, settle, and adjust all claims under  Borrower’s insurance policies; (iv) pay, contest or settle any Lien, charge, encumbrance, security  interest, or other claim in or to the Collateral, or any judgment based thereon, or otherwise take any  action to terminate or discharge the same; (v) transfer the Collateral into the name of Agent or a  third party as the UCC permits; (vi) receive, open and dispose of mail addressed to Borrower; (vii)  endorse Borrower’s name on any checks, payment instruments, or other forms of payment or  security; and (viii) notify all account debtors to pay Agent directly.  Borrower hereby appoints Agent  as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or  continue the perfection of Agent’s security interest in the Collateral regardless of whether an Event  of Default has occurred until all Secured Obligations have been satisfied in full (and any obligations  under Bank Services Agreements that constitute Secured Obligations have been cash collateralized  in accordance with Section 3.4 of this Agreement) and the Loan Documents have been  terminated.  Agent’s foregoing appointment as Borrower’s attorney in fact, and all of Agent’s rights  and powers, coupled with an interest, are irrevocable until all Secured Obligations have been fully  repaid and performed (and any obligations under Bank Services Agreements that constitute Secured  Obligations have been cash collateralized in accordance with Section 3.4 of this Agreement) and the  Loan Documents have been terminated.  Agent may, and as directed by each Lender in accordance  with Addendum 4 shall, exercise all rights and remedies with respect to the Collateral under the  

 

      Loan Documents or otherwise available to it under the UCC and other applicable law, including the  right to release, hold, sell, lease, liquidate, collect, realize upon, or otherwise dispose of all or any  part of the Collateral and the right to occupy, utilize, process and commingle the Collateral.  All  Agent’s rights and remedies shall be cumulative and not exclusive.  10.2 Collection; Foreclosure.  Upon the occurrence and during the continuance of any  Event of Default, Agent may, and at the direction of the Required Lenders shall, at any time or from  time to time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of, any or  all of the Collateral, in its then condition or following any commercially reasonable preparation or  processing, in such order as Agent may elect.  Any such sale may be made either at public or private  sale at its place of business or elsewhere.  Borrower agrees that any such public or private sale may  occur upon ten (10) calendar days’ prior written notice to Borrower.  Agent may require Borrower  to assemble the Collateral and make it available to Agent at a place designated by Agent that is  reasonably convenient to Agent and Borrower.  The proceeds of any sale, disposition or other  realization upon all or any part of the Collateral shall be applied by Agent in the following order of  priorities:   First, to Agent, in an amount equal to the sum of all fees owing to Agent hereunder;   Second, to Agent and Lenders in an amount sufficient to pay in full Agent’s and Lenders’  reasonable costs and professionals’ and advisors’ fees and expenses as described in  Section 11.12;   Third, to Lenders, ratably, in an amount equal to the sum of all accrued interest owning to  the Lenders on the Term Loan Advances hereunder;   Fourth, to Lenders, ratably, in an amount equal to the sum of the outstanding principal and  premium, if any owing to Lenders from Borrower on the Term Loan Advances hereunder;   Fifth, to Lenders and Agent, ratably (in proportion to all remaining Secured Obligations  owing to each) in an amount equal to the sum of all other outstanding and unpaid Secured  Obligations (including principal, interest, subject to increase in accordance with  Section 2.3); and   Finally, after the full and final payment in Cash of all of the Secured Obligations (other than  inchoate obligations, any obligations under Bank Services Agreements that are cash  collateralized in accordance with Section 3.4 of this Agreement and any other obligations  which, by their terms, are to survive the termination of this Agreement), to any creditor  holding a junior Lien on the Collateral, or to Borrower or its representatives or as a court of  competent jurisdiction may direct.  Agent shall be deemed to have acted reasonably in the custody, preservation and disposition of any of the  Collateral if it complies with the obligations of a secured party under the UCC.  10.3 No Waiver.  Agent shall be under no obligation to marshal any of the Collateral for  the benefit of Borrower or any other Person, and Borrower expressly waives all rights, if any, to  require Agent to marshal any Collateral.    10.4 Cumulative Remedies.  The rights, powers and remedies of Agent hereunder shall  be in addition to all rights, powers and remedies given by statute or rule of law and are cumulative.   The exercise of any one or more of the rights, powers and remedies provided herein shall not be  construed as a waiver of or election of remedies with respect to any other rights, powers and  remedies of Agent.  

 

      SECTION 11.  MISCELLANEOUS  11.1 Severability.  Whenever possible, each provision of this Agreement shall be  interpreted in such manner as to be effective and valid under applicable law, but if any provision of  this Agreement shall be prohibited by or invalid under such law, such provision shall be ineffective  only to the extent and duration of such prohibition or invalidity, without invalidating the remainder  of such provision or the remaining provisions of this Agreement.  11.2 Notice.  Except as otherwise provided herein, any notice, demand, request, consent,  approval, declaration, service of process or other communication (including the delivery of Financial  Statements) that is required, contemplated, or permitted under the Loan Documents or with respect  to the subject matter hereof shall be in writing, and shall be deemed to have been validly served,  given, delivered, and received upon the earlier of: (i) the day of transmission by electronic mail or  hand delivery or delivery by an overnight express service or overnight mail delivery service; or  (ii) the third calendar day after deposit in the United States of America mails, with proper first class  postage prepaid, in each case addressed to the party to be notified as follows:  (a) If to Agent:  HERCULES CAPITAL, INC.  Legal Department  Attention:  Chief Legal Officer and [**]  400 Hamilton Avenue, Suite 310  Palo Alto, CA  94301  email: [**]   Telephone:  650-289-3060  (b) If to the Lenders:  HERCULES CAPITAL, INC.    Legal Department  Attention:  Chief Legal Officer and [**]  400 Hamilton Avenue, Suite 310  Palo Alto, CA  94301  email: [**]  Telephone:  650-289-3060  SILICON VALLEY BANK  275 Grove Street, Suite 2-200  Newton, MA 02466  Attn: [**]  Email: [**]  (c) If to Borrower:  IVERIC bio, Inc.  Attention:  Legal Department  Email:  [**]    

 

      with a copy (which shall not constitute notice) to:  WilmerHale  60 State Street  Boston, MA 02109            Attention: George W. Shuster Jr.  Email: george.shuster@wilmerhale.com  or to such other address as each party may designate for itself by like notice.  11.3 Entire Agreement; Amendments.    (a) This Agreement and the other Loan Documents constitute the entire agreement and  understanding of the parties hereto in respect of the subject matter hereof and thereof, and supersede  and replace in their entirety any prior proposals, term sheets, non-disclosure or confidentiality  agreements, letters, negotiations or other documents or agreements, whether written or oral, with  respect to the subject matter hereof or thereof (including the proposal letter of Hercules and SVB  dated [**] and the Non-Disclosure Agreement).    (b) Neither this Agreement, any other Loan Document, nor any terms hereof or thereof  may be amended, supplemented or modified except in accordance with the provisions of this  Section 11.3(b).  The Required Lenders and Borrower party to the relevant Loan Document may,  or, with the written consent of the Required Lenders, Agent and Borrower party to the relevant  Loan Document may, from time to time, (i) enter into written amendments, supplements or  modifications hereto and to the other Loan Documents for the purpose of adding any provisions to  this Agreement or the other Loan Documents or changing in any manner the rights of the Lenders  or of Borrower hereunder or thereunder or (ii) waive, on such terms and conditions as the Required  Lenders or Agent, as the case may be, may specify in such instrument, any of the requirements of  this Agreement or the other Loan Documents or any Default or Event of Default and its  consequences; provided, however, that no such waiver and no such amendment, supplement or  modification shall (A) forgive the principal amount or extend the final scheduled date of maturity  of any Loan, extend the scheduled date of any amortization payment in respect of any Term Loan,  reduce the stated rate of any interest (or fee payable hereunder) or extend the scheduled date of any  payment thereof, in each case without the written consent of each Lender directly affected thereby;  (B) eliminate or reduce the voting rights of any Lender under this Section 11.3(b) without the  written consent of such Lender; (C) reduce any percentage specified in the definition of Required  Lenders, consent to the assignment or transfer by Borrower of any of its rights and obligations  under this Agreement and the other Loan Documents, release all or substantially all of the Collateral  or release a Borrower from its obligations under the Loan Documents, in each case without the  written consent of all Lenders; or (D) amend, modify or waive any provision of Section 11.18 or  Addendum 2 without the written consent of Agent.  Any such waiver and any such amendment,  supplement or modification shall apply equally to each Lender and shall be binding upon Borrower,  the Lender, Agent and all future holders of the Loans.  11.4 No Strict Construction.  The parties hereto have participated jointly in the  negotiation and drafting of this Agreement.  In the event an ambiguity or question of intent or  interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto and  no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the  authorship of any provisions of this Agreement.  

 

      11.5 No Waiver.  The powers conferred upon Agent and the Lenders by this Agreement  are solely to protect its rights hereunder and under the other Loan Documents and its interest in the  Collateral and shall not impose any duty upon Agent or the Lenders to exercise any such powers.   No omission or delay by Agent or the Lenders at any time to enforce any right or remedy reserved  to it, or to require performance of any of the terms, covenants or provisions hereof by Borrower at  any time designated, shall be a waiver of any such right or remedy to which Agent or the Lenders is  entitled, nor shall it in any way affect the right of Agent or the Lenders to enforce such provisions  thereafter.  11.6 Survival.  All agreements, representations and warranties contained in this  Agreement and the other Loan Documents or in any document delivered pursuant hereto or thereto  shall be for the benefit of Agent and the Lenders and shall survive the execution and delivery of this  Agreement. Sections 6.3, 11.14, 11.15 and 11.17 shall survive the termination of this Agreement.  11.7 Successors and Assigns.  The provisions of this Agreement and the other Loan  Documents shall inure to the benefit of and be binding on Borrower and its permitted assigns (if  any).  Borrower shall not assign its obligations under this Agreement or any of the other Loan  Documents without Agent’s express prior written consent, and any such attempted assignment shall  be void and of no effect.  Agent and the Lenders may assign, transfer, or endorse its rights hereunder  and under the other Loan Documents without prior notice to Borrower, and all of such rights shall  inure to the benefit of Agent’s and the Lenders’ successors and assigns; provided that as long as no  Event of Default has occurred and is continuing, neither Agent nor any Lender may assign, transfer  or endorse its rights hereunder or under the Loan Documents to any party that is a direct competitor  of Borrower or a distressed debt or vulture fund (as reasonably determined by Agent), it being  acknowledged that in all cases, any transfer to an Affiliate of any Lender or Agent shall be allowed.   Notwithstanding the foregoing, (x) in connection with any assignment by a Lender as a result of a  forced divestiture at the request of any regulatory agency, the restrictions set forth herein shall not  apply and Agent and the Lenders may assign, transfer or indorse its rights hereunder and under the  other Loan Documents to any Person or party and (y) in connection with a Lender’s own financing  or securitization transactions, the restrictions set forth herein shall not apply and Agent and the  Lenders may assign, transfer or indorse its rights hereunder and under the other Loan Documents to  any Person or party providing such financing or formed to undertake such securitization transaction  and any transferee of such Person or party upon the occurrence of a default, event of default or  similar occurrence with respect to such financing or securitization transaction; provided that no such  sale, transfer, pledge or assignment under this clause (y) shall release such Lender from any of its  obligations hereunder or substitute any such Person or party for such Lender as a party hereto until  Agent shall have received and accepted an effective assignment agreement from such Person or  party in form satisfactory to Agent executed, delivered and fully completed by the applicable parties  thereto, and shall have received such other information regarding such assignee as Agent reasonably  shall require.  Agent, acting solely for this purpose as an agent of Borrower, shall maintain at one of  its offices in the United States a register for the recordation of the names and addresses of the  Lender(s), and the Term Commitments of, and principal amounts (and stated interest) of the Loans  owing to, each Lender pursuant to the terms hereof from time to time (the “Register”).  The entries  in the Register shall be conclusive absent manifest error, and Borrower, Agent and the Lender(s)  shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a  Lender hereunder for all purposes of this Agreement.  The Register shall be available for inspection  by Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior  notice.   

 

      11.8 Participations.  Each Lender that sells a participation shall, acting solely for this  purpose as a non-fiduciary agent of Borrower, maintain a register on which it enters the name and  address of each participant and the principal amounts (and stated interest) of each participant’s  interest in the Loans or other obligations under the Loan Documents (the “Participant Register”);  provided that no Lender shall have any obligation to disclose all or any portion of the Participant  Register (including the identity of any participant or any information relating to a participant's  interest in any commitments, loans, its other obligations under any Loan Document) to any Person  except to the extent that such disclosure is necessary to establish that such commitment, loan, letter  of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States  Treasury Regulations.  The entries in the Participant Register shall be conclusive absent manifest  error, and such Lender shall treat each Person whose name is recorded in the Participant Register as  the owner of such participation for all purposes of this Agreement notwithstanding any notice to the  contrary.  For the avoidance of doubt, Agent (in its capacity as Agent) shall have no responsibility  for maintaining a Participant Register.  Borrower agrees that each participant shall be entitled to the  benefits of the provisions in Addendum 1 attached hereto (subject to the requirements and limitations  therein, including the requirements under Section 7 of Addendum 1 attached hereto (it being  understood that the documentation required under Section 7 of Addendum 1 attached hereto shall  be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired  its interest by assignment pursuant to Section 11.7; provided that such participant shall not be  entitled to receive any greater payment under Addendum 1 attached hereto, with respect to any  participation, than its participating Lender would have been entitled to receive, except to the extent  such entitlement to receive a greater payment results from a change in law that occurs after the  participant acquired the applicable participation.  11.9 Governing Law.  This Agreement and the other Loan Documents have been  negotiated and delivered to Agent and the Lenders in the State of New York, and shall have been  accepted by Agent and the Lenders in the State of New York.  Payment to Agent and the Lenders  by Borrower of the Secured Obligations is due in the State of New York.  This Agreement and the  other Loan Documents shall be governed by, and construed and enforced in accordance with, the  laws of the State of New York, excluding conflict of laws principles that would cause the application  of laws of any other jurisdiction.  11.10 Consent to Jurisdiction and Venue.  All judicial proceedings (to the extent that the  reference requirement of Section 11.11 is not applicable) arising in or under or related to this  Agreement or any of the other Loan Documents may be brought in any state or federal court located  in the State of New York.  By execution and delivery of this Agreement, each party hereto generally  and unconditionally: (a) consents to nonexclusive personal jurisdiction in New York County, State  of New York; (b) waives any objection as to jurisdiction or venue in New York County, State of  New York; (c) agrees not to assert any defense based on lack of jurisdiction or venue in the aforesaid  courts; and (d) irrevocably agrees to be bound by any judgment rendered thereby in connection with  this Agreement or the other Loan Documents.  Service of process on any party hereto in any action  arising out of or relating to this Agreement shall be effective if given in accordance with the  requirements for notice set forth in Section 11.2, and shall be deemed effective and received as set  forth in Section 11.2.  Nothing herein shall affect the right to serve process in any other manner  permitted by law or shall limit the right of either party to bring proceedings in the courts of any other  jurisdiction.  11.11 Mutual Waiver of Jury Trial.  Because disputes arising in connection with complex  financial transactions are most quickly and economically resolved by an experienced and expert  Person and the parties wish applicable state and federal laws to apply (rather than arbitration rules),  

 

      the parties desire that their disputes be resolved by a judge applying such applicable laws.  EACH  OF BORROWER, AGENT AND THE LENDERS SPECIFICALLY WAIVES ANY RIGHT IT  MAY HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM,  COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY,  “CLAIMS”) ASSERTED BY BORROWER AGAINST AGENT, THE LENDERS OR THEIR  RESPECTIVE ASSIGNEE OR BY AGENT, THE LENDERS OR THEIR RESPECTIVE  ASSIGNEE AGAINST BORROWER.  This waiver extends to all such Claims, including Claims  that involve Persons other than Agent, Borrower and the Lenders; Claims that arise out of or are in  any way connected to the relationship among Borrower, Agent and the Lenders; and any Claims for  damages, breach of contract, tort, specific performance, or any equitable or legal relief of any kind,  arising out of this Agreement, any other Loan Document.    11.12 Professional Fees.  Borrower promises to pay Agent’s and the Lenders’ reasonable  and documented out-of-pocket fees and expenses necessary to finalize the loan documentation,  including but not limited to reasonable attorneys’ fees, UCC searches, filing costs, and other  miscellaneous expenses; provided, that the Due Diligence Fee shall be applied in its entirety to the  Lenders’ non-legal transaction costs and due diligence expenses. In addition, Borrower promises to  pay any and all reasonable and documented out-of-pocket attorneys’ and other professionals’ fees  and expenses incurred by Agent and the Lenders after the Closing Date in connection with or related  to:  (a) the Loan; (b) the administration, collection, or enforcement of the Loan; (c) the amendment  or modification of the Loan Documents; (d) any waiver, consent, release, or termination under the  Loan Documents; (e) the protection, preservation, audit, field exam, sale, lease, liquidation, or  disposition of Collateral or the exercise of remedies with respect to the Collateral; (f) any legal,  litigation, administrative, arbitration, or out of court proceeding in connection with or related to  Borrower or the Collateral, and any appeal or review thereof; and (g) any bankruptcy, restructuring,  reorganization, assignment for the benefit of creditors, workout, foreclosure, or other action related  to Borrower, the Collateral, the Loan Documents, including representing Agent or the Lenders in  any adversary proceeding or contested matter commenced or continued by or on behalf of  Borrower’s estate, and any appeal or review thereof.  11.13 Confidentiality.  Agent and the Lenders acknowledge that certain items of Collateral  and information provided to Agent and the Lenders by Borrower are confidential and proprietary  information of Borrower, if and to the extent such information either (x) is marked as confidential  by Borrower at the time of disclosure, or (y) should reasonably be understood to be confidential (the  “Confidential Information”).  Accordingly, Agent and the Lenders agree that any Confidential  Information it may obtain in the course of acquiring, administering, or perfecting  Agent’s security  interest in the Collateral shall not be disclosed to any other Person or entity in any manner  whatsoever, in whole or in part, without the prior written consent of Borrower, except that Agent  and the Lenders may disclose any such information:  (a) to its Affiliates and its partners, investors,  lenders, directors, officers, employees, agents, advisors, counsel, accountants, counsel,  representative and other professional advisors if Agent or the Lenders in their sole discretion  determines that any such party should have access to such information in connection with such  party’s responsibilities in connection with the Loan or this Agreement and, provided that such  recipient of such Confidential Information either (i) agrees to be bound by the confidentiality  provisions of this paragraph or (ii) is otherwise subject to confidentiality restrictions that reasonably  protect against the disclosure of Confidential Information pursuant to substantially similar terms;  (b) if such information is generally available to the public or to the extent such information becomes  publicly available other than as a result of a breach of this Section or becomes available to Agent or  any Lender, or any of their respective Affiliates on a non-confidential basis from a source other than  Borrower; (c) if required or appropriate in any report, statement or testimony submitted to any  

 

      governmental authority having or claiming to have jurisdiction over Agent or the Lenders and any  rating agency; (d) if required or appropriate in response to any summons or subpoena or in  connection with any litigation, to the extent permitted or deemed advisable by Agent’s or the  Lenders’ counsel; (e) to comply with any legal requirement or law applicable to Agent or the  Lenders or demanded by any governmental authority; (f) to the extent reasonably necessary in  connection with the exercise of, or preparing to exercise, or the enforcement of, or preparing to  enforce, any right or remedy under any Loan Document (including Agent’s sale, lease, or other  disposition of Collateral after Default), or any action or proceeding relating to any Loan Document;  (g) to any participant or assignee of Agent or the Lenders or any prospective participant or assignee,  provided, that such participant or assignee or prospective participant or assignee is subject to  confidentiality restrictions no less protective than the provisions of this Section 11.13; (h) to any  investor or potential investor (and each of their respective Affiliates or clients) in Agent or Lender  (or each of their respective Affiliates); provided that such investor, potential investor, Affiliate or  client is subject to confidentiality obligations with respect to the Confidential Information; (i)  otherwise to the extent consisting of general portfolio information that does not identify Borrower;  or (j) otherwise with the prior consent of Borrower; provided, that any disclosure made in violation  of this Agreement shall not affect the obligations of Borrower or any of its Affiliates or any guarantor  under this Agreement or the other Loan Documents.  Agent’s and the Lenders’ obligations under  this Section 11.13 shall supersede all of their respective obligations under the Non-Disclosure  Agreement.  11.14 Assignment of Rights.  Borrower acknowledges and understands that Agent or the  Lenders may, subject to Section 11.7, sell and assign all or part of its interest hereunder and under  the Loan Documents to any Person or entity (an “Assignee”).  After such assignment the term  “Agent” or “Lender” as used in the Loan Documents shall mean and include such Assignee, and  such Assignee shall be vested with all rights, powers and remedies of Agent and the Lenders  hereunder with respect to the interest so assigned; but with respect to any such interest not so  transferred, Agent and the Lenders shall retain all rights, powers and remedies hereby given.  No  such assignment by Agent or the Lenders shall relieve Borrower of any of its obligations hereunder.   the Lenders agrees that in the event of any transfer by it of the promissory note(s) (if any), it will  endorse thereon a notation as to the portion of the principal of the promissory note(s), which shall  have been paid at the time of such transfer and as to the date to which interest shall have been last  paid thereon.  11.15 Revival of Secured Obligations.  This Agreement and the Loan Documents shall  remain in full force and effect and continue to be effective if any petition is filed by or against  Borrower for liquidation or reorganization, if Borrower becomes insolvent or makes an assignment  for the benefit of creditors, if a receiver or trustee is appointed for all or any significant part of  Borrower’s assets, or if any payment or transfer of Collateral is recovered from Agent or the Lenders.   The Loan Documents and the Secured Obligations and Collateral security shall continue to be  effective, or shall be revived or reinstated, as the case may be, if at any time payment and  performance of the Secured Obligations or any transfer of Collateral to Agent, or any part thereof is  rescinded, avoided or avoidable, reduced in amount, or must otherwise be restored or returned by,  or is recovered from, Agent, the Lenders or by any obligee of the Secured Obligations, whether as  a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment,  performance, or transfer of Collateral had not been made.  In the event that any payment, or any part  thereof, is rescinded, reduced, avoided, avoidable, restored, returned, or recovered, the Loan  Documents and the Secured Obligations shall be deemed, without any further action or  documentation, to have been revived and reinstated except to the extent of the full, final, and  indefeasible payment to Agent or the Lenders in Cash.  

 

      11.16 Counterparts.  This Agreement and any amendments, waivers, consents or  supplements hereto may be executed in any number of counterparts, and by different parties hereto  in separate counterparts, each of which when so delivered shall be deemed an original, but all of  which counterparts shall constitute but one and the same instrument.  11.17 No Third-Party Beneficiaries.  No provisions of the Loan Documents are intended,  nor will be interpreted, to provide or create any third-party beneficiary rights or any other rights of  any kind in any Person other than Agent, the Lenders and Borrower unless specifically provided  otherwise herein, and, except as otherwise so provided, all provisions of the Loan Documents will  be personal and solely among Agent, the Lenders and Borrower.   11.18 Agency.  Agent and each Lender hereby agree to the terms and conditions set forth  on Addendum 2 attached hereto.  Borrower acknowledges and agrees to the terms and conditions  set forth on Addendum 2 attached hereto.  11.19 Publicity.  None of the parties hereto nor any of its respective member businesses  and Affiliates shall, without the other parties’ prior written consent (which shall not be unreasonably  withheld or delayed), publicize or use (a) the other party's name (including a brief description of the  relationship among the parties hereto), logo or hyperlink to such other parties’ web site, separately  or together, in written and oral presentations, advertising, promotional and marketing materials,  client lists, public relations materials or on its web site (together, the "Publicity Materials"); (b) the  names of officers of such other parties in the Publicity Materials; and (c) such other parties’ name,  trademarks, servicemarks in any news or press release concerning such party; provided however,  notwithstanding anything to the contrary herein, no such consent shall be required (i) to the extent  necessary to comply with the requests of any regulators, legal requirements or laws applicable to  such party, pursuant to any listing agreement with any national securities exchange (so long as such  party provides prior notice to the other party hereto to the extent reasonably practicable) and (ii) to  comply with Section 11.13.  11.20 Multiple Borrowers.  Each Loan Party hereby agrees to the terms and conditions set  forth on Addendum 3 attached hereto.    11.21 Electronic Execution of Certain Other Documents.  The words “execution,”  “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed  in connection with this Agreement and the transactions contemplated hereby (including without  limitation assignments, assumptions, amendments, waivers and consents) shall be deemed to include  electronic signatures, the electronic matching of assignment terms and contract formations on  electronic platforms approved by Agent, or the keeping of records in electronic form, each of which  shall be of the same legal effect, validity or enforceability as a manually executed signature or the  use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in  any applicable law, including the Federal Electronic Signatures in Global and National Commerce  Act, the New York Uniform Electronic Transaction Act, or any other similar state laws based on the  Uniform Electronic Transactions Act.  11.22 Permitted Senior Revolving Loan Intercreditor Agreement.  This Agreement and all  of the Loan Documents are subject to the terms and provisions of the Permitted Senior Revolving  Loan Intercreditor Agreement.  With respect to any conflict between the terms of any Loan  Document and the terms of the Permitted Senior Revolving Loan Intercreditor Agreement, the terms  of the Permitted Senior Revolving Loan Intercreditor Agreement shall govern and control.  (SIGNATURES TO FOLLOW)  

 

      IN WITNESS WHEREOF, Borrower, Agent and the Lenders have duly executed and delivered  this Loan and Security Agreement as of the day and year first above written.  BORROWER:  IVERIC BIO, INC.  Signature: /s/ David Carroll_________  Print Name: David Carroll___________  Title:  CFO___________________  IVERIC BIO GENE THERAPY LLC  Signature: /s/ David Carroll_________  Print Name: David Carroll___________  Title:  CFO___________________  ORION OPHTHALMOLOGY LLC  Signature: /s/ David Carroll_________  Print Name: David Carroll___________  Title:  CFO___________________       

 

      AGENT:  HERCULES CAPITAL, INC.  Signature: /s/ Seth Meyer___________  Print Name: Seth Meyer  Title:  Chief Financial Officer  LENDERS:  HERCULES CAPITAL, INC.  Signature: /s/ Seth Meyer___________  Print Name: Seth Meyer  Title:  Chief Financial Officer    HERCULES PRIVATE GLOBAL VENTURE  GROWTH FUND I L.P.  By: Hercules Adviser LLC, its Investment  Adviser  Signature: /s/ Seth Meyer___________  Print Name: Seth Meyer  Title:  Authorized Signatory  SILICON VALLEY BANK  Signature: /s/ Tom Gordon___________  Print Name: Tom Gordon_____________  Title:  Managing Director________        

 

      Table of Addenda, Exhibits and Schedules    Addendum 1:  Taxes; Increased Costs  Addendum 2: Agent and Lender Terms  Addendum 3: Multiple Borrower Terms  Addendum 4: Intercreditor Provisions  Exhibit A: Advance Request     Attachment to Advance Request  Exhibit B: Name, Locations, and Other Information for Borrower  Exhibit C: Borrower’s Patents, Trademarks, Copyrights and Licenses  Exhibit D: Borrower’s Deposit Accounts and Investment Accounts  Exhibit E: Compliance Certificate  Exhibit F: Joinder Agreement  Exhibit G: ACH Debit Authorization Agreement  Exhibit H-1: Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Not Partnerships  For U.S. Federal Income Tax Purposes)  Exhibit H-2: Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Not  Partnerships For U.S. Federal Income Tax Purposes)  Exhibit H-3: Form of U.S. Tax Compliance Certificate (For Foreign Participants That Are Partnerships  For U.S. Federal Income Tax Purposes)  Exhibit H-4: Form of U.S. Tax Compliance Certificate (For Foreign Lenders That Are Partnerships For  U.S. Federal Income Tax Purposes)  Schedule 1.1 Commitments  Schedule 1 Subsidiaries  Schedule 1A Existing Permitted Indebtedness  Schedule 1B Existing Permitted Investments  Schedule 1C Existing Permitted Liens  Schedule 5.8 Tax Matters  Schedule 5.9 Intellectual Property Claims  Schedule 5.10 Intellectual Property  Schedule 5.10(d) Matters Relating to Current Material Agreements  Schedule 5.11 Borrower Products  Schedule 5.14 Capitalization  Schedule 7.18 Performance Covenants  

 

      Schedule 7.19 Restricted Licenses     

 

      SCHEDULE 7.18  PERFORMANCE COVENANTS  Period Ending Minimum Net Product  Sales of Zimura  June 30, 2024 [**]  September 30, 2024 [**]  December 31, 2024 [**]  March 31, 2025 [**]  June 30, 2025 [**]  September 30, 2025 [**]  December 31, 2025 [**]  March 31, 2026 [**]  June 30, 2026 [**]  September 30, 2026 [**]  December 31, 2026 [**]  March 31, 2027 [**]  June 30, 2027 and thereafter [**]

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