Document:

apvo-ex101_111.htm

Exhibit 10.1

amendment No. 2 to CREDIT AND SECURITY AGREEMENT

This AMENDMENT NO. 2 TO CREDIT AND SECURITY AGREEMENT (this “Agreement”) is made as of September 28, 2017, by and among Aptevo Therapeutics inc., a Delaware corporation (“Aptevo Therapeutics”), APTEVO BIOTHERAPEUTICS LLC, a Delaware limited liability company (“Aptevo BioTherapeutics”), APTEVO RESEARCH AND DEVELOPMENT LLC, a Delaware limited liability company (“Aptevo R&D”, and Aptevo R&D together with Aptevo Therapeutics and Aptevo BioTherapeutics, each individually, a “Borrower” and collectively, the “Borrowers”), MIDCAP FINANCIAL TRUST, a Delaware statutory trust, as Agent (in such capacity, together with its successors and assigns, “Agent”) and the other financial institutions or other entities from time to time parties to the Credit Agreement referenced below, each as a Lender.

RECITALS

A.Agent, Lenders and Borrowers have entered into that certain Credit and Security Agreement, dated as of August 4, 2016 (as amended by that certain Amendment No. 1 to Credit and Security Agreement, dated as of May 11, 2017, and as further amended, modified, supplemented and restated prior to the date hereof, the “Original Credit Agreement” and as the same is amended hereby and as it may be further amended, modified, supplemented and restated from time to time, the “Credit Agreement”), pursuant to which the Lenders have agreed to make certain advances of money and to extend certain financial accommodations to Borrowers in the amounts and manner set forth in the Credit Agreement.

 

B.Aptevo Therapeutics and Aptevo BioTherapeutics have entered into that by that certain LLC Purchase Agreement, dated as of August 31, 2017, by and among such Borrowers, Saol International Limited, a Bermuda company (“Purchaser”), and Venus BioTherapeutics Sub LLC, a Delaware limited liability company (“Venus Acquisition Subsidiary”), as amended, supplemented or otherwise modified prior to the date hereof and a copy of which have been provided to the Agent (the “Venus Purchase Agreement”).

 

C.Borrowers desire to consummate the transactions contemplated by (x) the Purchase Agreement and (y) that certain Assignment and Assumption Agreement, dated as of the date hereof, by and among Aptevo Therapeutics, Aptevo BioTherapeutics, and Venus Acquisition Subsidiary (the “Assignment and Assumption Agreement”), which, among other things, require (i) Aptevo Therapeutics and Aptevo BioTherapeutics to assign to Venus Acquisition Subsidiary all of the Assigned Assets and Assumed Liabilities (in each case, as such terms are defined in the Assignment and Assumption Agreement) in accordance with the terms and subject to the conditions set forth in the Assignment and Assumption Agreement and (ii) Aptevo BioTherapeutics to sell all of the issued and outstanding limited liability company interests of Venus Acquisition Subsidiary to Purchaser in accordance with the terms and subject to the conditions set forth in the Purchase Agreement (collectively, the “Venus Sale Transaction”).

AGREEMENT

NOW, THEREFORE, in consideration of the foregoing, the terms and conditions set forth in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Agent, Lenders and Borrowers hereby agree as follows:

1.Recitals.  This Agreement shall constitute a Financing Document and the Recitals and each reference to the Credit Agreement, unless otherwise expressly noted, will be deemed to reference the Credit Agreement as amended hereby.  Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Credit Agreement (including those capitalized terms used in the Recitals hereto).

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2.Limited Consent and Waiver.  

(a)Subject to the terms and conditions set forth herein, Agent and each Lender hereby consent to (i) the creation of Venus Acquisition Subsidiary, (ii) the entry by Borrowers into the Venus Purchase Documents, including, for the avoidance of doubt, the Venus Escrow Agreement and the funding of the Escrow Amount (as defined in the Venus Purchase Agreement), and (iii) the consummation by Borrowers of the Venus Sale Transaction. 

(b)Subject to the terms and conditions set forth herein, notwithstanding Section 2.1(a)(ii)(B)(iii) of the Credit Agreement or any other provisions of the Credit Agreement, Agent and each Lender hereby agree that no prepayment of the Term Loans shall be required to prepay the Loans as a result of Borrowers’ receipt of net cash proceeds from the consummation of the Venus Sale Transaction.

(c)Subject to the terms and conditions set forth herein, notwithstanding Section 4.11 of the Credit Agreement or any other provisions of the Credit Agreement, Agent and each Lender hereby agrees that Borrowers shall not be required to join Venus Acquisition Subsidiary as a Credit Party under the Financing Documents or take other action as required by Section 4.11 of the Credit Agreement.

(d)Without limiting the consents set forth in Sections 2(a)-(c) above, Agent and each Lender hereby waive, ab initio, any Default or Event of Default that occurred solely as a result of Borrowers’ failure to comply with the provisions of Section 4.11(d) in respect of Venus Acquisition Subsidiary on or prior to the date hereof.

(e)The limited consents set forth in Sections 2(a)-(c) and the limited waiver set forth in Section 2(d) are effective solely for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (i) be a consent to any amendment, waiver or modification of any other term or condition of the Credit Agreement or of any other Financing Document; (ii) prejudice any right that Agent or Lenders have or may have in the future under or in connection with the Credit Agreement or any other Financing Document; (iii) constitute a consent to or waiver of any other past, present or future Default or Event of Default or other violation of any provisions of the Credit Agreement or any other Financing Documents, (iv) create any obligation to forbear from taking any enforcement action, or to make any further extensions of credit or (v) establish a custom or course of dealing among any of the Credit Parties, on the one hand, or Agent or any Lender, on the other hand.

3.Amendments to Original Credit Agreement.  Subject to the satisfaction of the conditions to effectiveness set forth in Section 5 below, the Original Credit Agreement is hereby amended as follows:

(a)Section 1.1 of the Original Credit Agreement is hereby amended by adding the following definitions in the appropriate alphabetical order therein:

“Borrower Unrestricted Cash” has the meaning set forth in Section 6.1.

“Second Amendment” means that certain Amendment No. 2 to Credit and Security Agreement, dated as of September 28, 2017, by and among Borrowers, Agent and the Lenders.”

“Second Amendment Effective Date” means the first date that all of the conditions in Section 5 of the Second Amendment are satisfied.”

“Venus Escrow Agreement” means the “Escrow Agreement”, as defined in the Venus Purchase Agreement. 

 

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“Venus Purchase Agreement” has the meaning set forth in the Second Amendment.

“Venus Purchase Documents” means the Venus Purchase Agreement, the Venus Escrow Agreement and each other material agreement and/or instrument executed by Borrower in connection therewith.

(b)The definition of “Commercial Products” in Section 1.1 of the Original Credit Agreement is hereby amended by deleting the words “each of the WinRho product, HepaGam B product, the VARIZIG product,” in such definition.

(c)The following definitions in Section 1.1 of the Original Credit Agreement are hereby amended and restated in their entirety as follows: 

“Material Contracts” means (a) the Operative Documents, (b) Subordinated Debt Documents, (c) the agreements listed on Schedule 3.17, (d) [reserved] (e) the Venus Purchase Documents, and (f) any agreement or contract to which such Credit Party or its Subsidiaries is a party the loss or termination of which would reasonably be expected to result in a Material Adverse Effect.  

“Springing IP Event” means that, on any date, the Borrowers have allowed, as of the close of business on any day, the aggregate Borrower Unrestricted Cash to be less than $25,000,000. 

“Term Loan Tranche 2 Commitment Termination Date” means the Second Amendment Effective Date.

(d)Section 2.2(f) of the Credit Agreement is hereby amended by inserting “as in effect on the Closing Date” following words Term Loan Commitment Amount in the third line thereof.

(e)Section 6.1 of the Original Credit Agreement is hereby amended by adding the following definition in the appropriate alphabetical order therein:

“Borrower Unrestricted Cash” means the aggregate amount of unrestricted cash and cash equivalents of the Borrowers that (a) is held in the name of a Borrower in a Deposit Account or Securities Account that is subject to a Deposit Account Control Agreement or Securities Account Control Agreement, as applicable, in favor of Agent at bank or financial institution located in the United States, (b) is not subject to any Lien (other than Permitted Liens), and (c) are not funds for the payment of a drawn or committed but unpaid draft, ACH or EFT transaction.

(f)The definition of “Net Commercial Product Revenue” in Section 6.1 of the Original Credit Agreement is hereby amended by replacing the words “Commercial Products” in clause (a) thereof with the words “IXINITY product”.

(g)Article 6 of the Original Credit Agreement is hereby amended by adding a new Section 6.3 and renumbering the existing Section 6.3 to Section 6.4;

Section 6.3Minimum Cash.  Borrower shall not permit the Borrower Unrestricted Cash as of the close of business on any day after the Second Amendment Effective Date to be less than $10,000,000. 

(h)Section 6.4, as renumbered by clause (f) above, is hereby amended by adding the words “bank statements” after the words “including, without limitation,” in clause (b) thereof. 

 

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(i)Annex A is hereby replaced in its entirety by the new Annex A attached hereto.  Without limiting the foregoing, the parties hereby agree that notwithstanding anything to the contrary in the Credit Agreement that the Term Loan Tranche 2 Commitments are hereby terminated as of the Second Amendment Effective Date and, as of such date, no Lender shall have any obligation to make any Term Loan Tranche 2 Loan in respect thereof.  

(j)Schedule 2.1 of the Original Credit Agreement is hereby replaced in its entirety by the new Schedule 2.1 attached hereto.

(k)Schedule 6.2 of the Original Credit Agreement is hereby replaced in its entirety by the new Schedule 6.2 attached hereto.

(l)Exhibit G to the Original Credit Agreement is hereby amended by replacing the schedules thereto with the schedules set forth as Exhibit G-1 to this Agreement.  Without limiting the foregoing, the parties agree that the schedules to the executed Intellectual Property Security Agreement being held in escrow by Agent will also be replaced by the schedules set forth as Exhibit G-1 to this Agreement.

(m)Each Schedule to the Original Credit Agreement is hereby replaced in its entirety by new correspondingly numbered Schedule attached hereto.

4.Representations and Warranties; Reaffirmation of Security Interest.  

(a)Each Borrower hereby confirms, as of the Second Amendment Effective Date, that each of the representations and warranties set forth in the Credit Agreement is true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) with respect to such Borrower as of the date hereof except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty shall be true and correct in all material respects as of such earlier date (without duplication of any materiality qualifier in the text of such representation or warranty).  Each Borrower confirms and agrees that, other than as specified in the Second Amendment, all security interests and Liens granted to Agent continue in full force and effect, and that all Collateral remains free and clear of any Liens, other than Permitted Liens.  Nothing herein is intended to impair or limit the validity, priority or extent of Agent’s security interests in and Liens on the Collateral, other than as specified in the Second Amendment.  Each Borrower acknowledges and agrees that the Credit Agreement, the other Financing Documents and this Agreement constitute the legal, valid and binding obligation of such Borrower, and are enforceable against such Borrower in accordance with their terms, except as the enforceability thereof may be limited by bankruptcy, insolvency or other similar laws relating to the enforcement of creditors’ rights generally and by general equitable principles.  

(b)As of the Second Amendment Effective Date, each of the representations and warranties made in the Venus Purchase Documents by the Credit Parties and, to the knowledge of Borrowers, the other Persons party thereto is true and correct in all material respects, except to the extent that such representation or warranty relates to a specific date, in which case such representation and warranty shall be true as of such earlier date.

(c)As of the Second Amendment Effective Date, Borrower has delivered to Agent a complete and correct copy of the Venus Agreement (including all schedules, exhibits, amendments, supplements, modifications, assignments and all other documents delivered pursuant thereto or in connection therewith).  No Credit Party and, to the knowledge of Borrowers, no other Person party thereto is in default in the performance or compliance with any provisions of the Venus Purchase Agreement.  

 

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5.Conditions to Effectiveness.  This Agreement shall become effective as of the date on which each of the following conditions has been satisfied (or waived in writing by the Agent and the Lenders), as determined by Agent in its sole discretion: 

(a)Borrowers, Agent and Lenders shall have delivered to Agent this Agreement, executed by an authorized officer of each such Person; 

(b)Borrowers shall have delivered to Agent a duly executed copy of the Second Amended and Restated Fee Letter, dated as of the date hereof, in form and substance reasonably satisfactory to Agent;

(c)Agent shall have received payment in full of all applicable fees as set forth in the Second Amended and Restated Fee Letter that are due and payable on or prior to the Second Amendment Effective Date;

(d)Agent shall have received copies of the fully executed and delivered Venus Purchase Documents;

(e)confirmation that the Venus Sale Transactions have been consummated, or will be consummated on the date hereof in all material respects in accordance with the terms of the Purchase Agreement and the other Venus Purchase Documents, each in the form provided to Agent prior to the Second Amendment Effective Date.  The Venus Purchase Agreement shall not have been amended or waived or modified since its original date of execution in a manner materially adverse to the Lenders or Agent, in their or its capacity as such, without the written consent of the Agent;

(f)all representations and warranties of Borrowers contained herein shall be true and correct in all material respects (without duplication of any materiality qualifier in the text of such representation or warranty) as of the date hereof except to the extent that any such representation or warranty relates to a specific date in which case such representation or warranty shall be true and correct in all material respects as of such earlier date (without duplication of any materiality qualifier in the text of such representation or warranty) (and such parties’ delivery of their respective signatures hereto shall be deemed to be its certification thereof);

(g)except for any Default or Event of Default expressly waived pursuant to Section 2(d), prior to and after giving effect to the agreements set forth herein and the consummation of Venus Sale Transaction, no Default or Event of Default shall exist under any of the Financing Documents; and

(h)receipt by Agent of UCC searches considered reasonably necessary by the  Agent and other evidence as requested by Agent that no Liens exist other than Permitted Liens.

6.Collateral Release.  Effective upon the Closing (as such term is defined in the Venus Purchase Agreement) and the occurrence of the Second Amendment Effective Date, all Liens (if any) in favor of the Agent (for the benefit of Lenders) on the equity interests of the Venus Acquisition Subsidiary (the “Venus Equity”) and the Assigned Assets shall be and hereby are released.  The Credit Parties expressly acknowledge and agree that the release set forth in this Section 6 is a partial release, which does not release any Credit Party or Collateral (other than the Assigned Assets), and does not affect any rights of Agent or any Lender, or any Obligations of the Credit Parties or any of their respective Affiliates and/or Subsidiaries, or any other obligor in connection with any Loan, the Financing Documents, or any other outstanding credit facility.  If reasonably requested by a Borrower, Agent shall, at Borrower’s sole cost and expense, deliver to Borrowers such notices, affidavits or other instruments as may be reasonably required to release the Venus Equity and/or the Assigned Assets of record in any relevant filings offices.

 

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7.Lender Release.  In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Borrower, voluntarily, knowingly, unconditionally and irrevocably, with specific and express intent, for and on behalf of itself and all of its respective parents, subsidiaries, affiliates, members, managers, predecessors, successors, and assigns, and each of their respective current and former directors, officers, shareholders, agents, and employees, and each of their respective predecessors, successors, heirs, and assigns (individually and collectively, the “Releasing Parties”) does hereby fully and completely release, acquit and forever discharge each of Agent, Lenders, and each their respective parents, subsidiaries, affiliates, members, managers, shareholders, directors, officers and employees, and each of their respective predecessors, successors, heirs, and assigns (individually and collectively, the “Released Parties”), of and from any and all actions, causes of action, suits, debts, disputes, damages, claims, obligations, liabilities, costs, expenses and demands of any kind whatsoever, at law or in equity, whether matured or unmatured, liquidated or unliquidated, vested or contingent, choate or inchoate, known or unknown that the Releasing Parties (or any of them) has against the Released Parties or any of them (whether directly or indirectly), based in whole or in part on facts, whether or not now known, existing on or before the date hereof (and not, for the avoidance of doubt, arising at any time hereafter).  Each Borrower acknowledges that the foregoing release is a material inducement to Agent’s and each Lender’s decision to enter into this Agreement and agree to the modifications contemplated hereunder, and has been relied upon by Agent and Lenders in connection therewith.

8.No Waiver or Novation.  The execution, delivery and effectiveness of this Agreement shall not, except as expressly provided in this Agreement, operate as a waiver of any right, power or remedy of Agent, nor constitute a waiver of any provision of the Credit Agreement, the Financing Documents or any other documents, instruments and agreements executed or delivered in connection with any of the foregoing.  Nothing herein is intended or shall be construed as a waiver of any existing Defaults or Events of Default under the Credit Agreement or the other Financing Documents (other than as expressly set forth in Section 2) or any of Agent’s rights and remedies in respect of such Defaults or Events of Default (other than as expressly set forth in Section 2).  This Agreement (together with any other document executed in connection herewith) is not intended to be, nor shall it be construed as, a novation of the Credit Agreement.

9.Affirmation.  Except as specifically amended pursuant to the terms hereof, each Borrower hereby acknowledges and agrees that the Credit Agreement and all other Financing Documents (and all covenants, terms, conditions and agreements therein) shall remain in full force and effect, and are hereby ratified and confirmed in all respects by such Borrower.  Each Borrower covenants and agrees to comply with all of the terms, covenants and conditions of the Credit Agreement and the Financing Documents, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Agent’s or any Lender’s part which might otherwise constitute or be construed as a waiver of or amendment to such terms, covenants and conditions.  

10.Miscellaneous.

(a)Reference to the Effect on the Credit Agreement.  Upon the effectiveness of this Agreement, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of similar import shall mean and be a reference to the Credit Agreement, as amended by this Agreement.     

(b)Incorporation of Credit Agreement Provisions.  The provisions contained in Section 11.6 (Indemnification) of the Credit Agreement are incorporated herein by reference to the same extent as if reproduced herein in their entirety.

(c)THIS AGREEMENT AND ALL DISPUTES AND OTHER MATTERS RELATING HERETO OR ARISING THEREFROM (WHETHER SOUNDING IN CONTRACT LAW, 

 

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TORT LAW OR OTHERWISE), SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES. 

(d)EACH BORROWER HEREBY CONSENTS TO THE JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED IN THE STATE OF NEW YORK IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, AND IRREVOCABLY AGREES THAT, SUBJECT TO AGENT’S ELECTION, ALL ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL BE LITIGATED IN SUCH COURTS.  EACH BORROWER EXPRESSLY SUBMITS AND CONSENTS TO THE JURISDICTION OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS. EACH BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON SUCH BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO SUCH BORROWER AT THE ADDRESS SET FORTH IN THIS AGREEMENT AND SERVICE SO MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN POSTED.

(e)EACH BORROWER, AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  EACH BORROWER, AGENT AND EACH LENDER ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS.  EACH BORROWER, AGENT AND EACH LENDER WARRANTS AND REPRESENTS THAT IT HAS HAD THE OPPORTUNITY OF REVIEWING THIS JURY WAIVER WITH LEGAL COUNSEL, AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS.

(f)Headings.  Section headings in this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.

(g)Counterparts.  This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same instrument.  Delivery of an executed counterpart of this Agreement by facsimile or by electronic mail delivery of an electronic version (e.g., .pdf or .tif file) of an executed signature page shall be effective as delivery of an original executed counterpart hereof and shall bind the parties hereto. 

(h)Entire Agreement.  This Agreement constitutes the entire agreement and understanding among the parties hereto and supersedes any and all prior agreements and understandings, oral or written, relating to the subject matter hereof.

(i)Severability.  In case any provision of or obligation under this Agreement shall be invalid, illegal or unenforceable in any applicable jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

(j)Successors/Assigns.  This Agreement shall bind, and the rights hereunder shall inure to, the respective successors and assigns of the parties hereto, subject to the provisions of the Credit Agreement and the other Financing Documents.

 

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[SIGNATURES APPEAR ON FOLLOWING PAGES]  

 

 

 

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IN WITNESS WHEREOF, intending to be legally bound, the undersigned have executed this Agreement as of the day and year first hereinabove set forth.  

 

	
 
	
 

	
AGENT:
	
MIDCAP FINANCIAL TRUST, 

	
 
	
as Agent

	
 
	
 

	
 
	
By:
	
Apollo Capital Management, L.P.,

	
 
	
its investment manager

	
 
	
 

	
 
	
By:
	
Apollo Capital Management GP, LLC,

	
 
	
its general partner

	
 
	
 

	
 
	
By:
	
/s/ Maurice Amsellem

	
 
	
Name: Maurice Amsellem

	
 
	
Title: Authorized Signatory

 

 

 

 

 

 

 

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LENDER:
	
MIDCAP FINANCIAL TRUST 

	
 
	
 

	
 
	
 

	
 
	
By:
	
Apollo Capital Management, L.P.,

	
 
	
its investment manager

	
 
	
 

	
 
	
By:
	
Apollo Capital Management GP, LLC,

	
 
	
its general partner

	
 
	
 

	
 
	
By:
	
/s/ Maurice Amsellem

	
 
	
Name: Maurice Amsellem

	
 
	
Title: Authorized Signatory

 

 

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LENDER:
	
APOLLO INVESTMENT CORPORATION

	
 
	
 

	
 
	
By: Apollo Investment Management, L.P., as Advisor

	
 
	
 

	
 
	
By: ACC Management, LLC, as its General Partner

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Tanner Powell

	
 
	
Name: Tanner Powell

	
 
	
Title: Authorized Signatory

 

 

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LENDER:
	
FLEXPOINT MCLS SPV LLC

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Daniel Edelman

	
 
	
Name: Daniel Edelman

	
 
	
Title: Vice President

 

 

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LENDER:
	
ELM 2016-1 TRUST

	
 
	
 

	
 
	
 

	
 
	
By:
	
MidCap Financial Services Capital

	
 
	
Management, LLC, as Servicer

	
 
	
 

	
 
	
By:
	
/s/ John O’Dea

	
 
	
Name: John O’Dea

	
 
	
Title: Authorized Signatory

 

 

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BORROWERS:
	
APTEVO THERAPEUTICS INC.

	
 
	
 

	
 
	
By:
	
/s/ Marvin White

	
 
	
Name: Marvin White

	
 
	
Title: President and Chief Executive Officer

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Marvin White

	
 
	
Name: Marvin White

	
 
	
Title: President

	
 
	
 

	
 
	
 

	
 
	
Aptevo Research and Development LLC

	
 
	
 

	
 
	
 

	
 
	
By:
	
/s/ Marvin White

	
 
	
Name: Marvin White

	
 
	
Title: President

 

 

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Annex A to Credit Agreement (Commitment Annex)

	
Lender
	
Term Loan Tranche 1 Commitment Amount
	
Term Loan Tranche 1 Commitment Percentage
	
Term Loan Tranche 2 Commitment Amount
	
Term Loan Tranche 2 Commitment Percentage

	
Elm 2016-1 Trust
	
$10,285,714.29
	
51.43%
	
$0
	
0%

	
MidCap Financial Trust
	
$0
	
0%
	
$0
	
0%

	
Apollo Investment Corporation
	
$8,571,428.57
	
42.86%
	
$0
	
0%

	
Flexpoint MCLS SPV LLC
	
$1,142,857.14
	
5.71%
	
$0
	
0%

	
TOTALS
	
$20,000,000
	
100%
	
$0
	
0%

 

 

 

 

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Schedule 2.1 – Amortization

Commencing on the Applicable Amortization Start Date and continuing on the first day of each calendar month thereafter, Borrower shall pay to Agent as a principal payment on the Term Loans an amount equal to the Applicable Amortization Payment Amount.  Notwithstanding the foregoing, the entire remaining outstanding principal balance under each of the Term Loans shall mature and be due and payable upon the Termination Date.   

 

For purposes hereof of this Schedule 2.1 the following terms shall have the following meanings: 

 

“Applicable Amortization Start Date” means: 

 

	
 
	
(a)
	
If Borrower has not satisfied the Initial Extension Conditions, August 1, 2018; or 

	
 
	
(b)
	
If Borrower has satisfied the Initial Extension Conditions, February 1, 2019; provided that, if for any of the Defined Periods ending on June 30, 2018, September 30, 2018 or December 31, 2018, respectively, Borrower fails to deliver a Compliance Certificate in accordance with Section 6.4 demonstrating to Agent’s reasonable satisfaction that Borrower’s Net Commercial Product Revenue for such Defined Period is greater than or equal $16,000,000, then the Applicable Amortization Start Date shall be deemed to have occurred on the first day of the calendar month following the end of such Defined Period and Borrower shall immediately pay to Agent true up principal payments in the amount of the Applicable Amortization Payment Amount for (i) the month in which the Applicable Amortization Start date was deemed to have occurred and (ii) each month commencing thereafter and prior to the date on which such Compliance Certificate was delivered (such true up payments shall, for the avoidance of doubt, be in addition to the Applicable Amortization Payment Amounts that shall be due and payable for each month commencing after the delivery of the applicable Compliance Certificate in accordance with the terms hereof).  

 

“Applicable Amortization Payment Amount” means, with respect to the Applicable Amortization Start Date, the amount specified in the table below”

 

	
Applicable Amortization Start Date
	
Applicable Amortization Payment Amount

	
August 1, 2018
	
$666,666.67

	
October 1, 2018
	
$714,285.71

	
January 1, 2019
	
$800,000.00

	
February 1, 2019
	
$833,333.33

 

“Initial Extension Conditions” means: (a) Borrower shall have delivered, by July 30, 2018, interim financial reporting, certified by a Responsible Officer of Borrower, that demonstrates to Agent’s reasonable satisfaction that Borrowers’ Net Commercial Product Revenue for the Defined Period ending on June 30, 2018 is greater than or equal to $16,000,000 (it being understood that such financial reporting shall be subject to correction by Borrowers, as necessary, in connection with Borrower’s delivery of its financial statements in accordance with Section 4.1(b) for the period ending June 30, 2018) and (b) no Default or Event of Default has occurred and is continuing as of August 1, 2018. 

 

 

 

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Schedule 6.2 – Minimum Net Commercial Product Revenue Schedule

 

	
Defined Period Ending
	
Minimum Net Commercial Product Revenue Amount

	
30-Sep-16
	
$0

	
31-Dec-16
	
$0

	
31-Mar-17
	
$0

	
30-Jun-17
	
$0

	
30-Sep-17
	
$10,184,000

	
31-Dec-17
	
$10,200,000

	
31-Mar-18
	
$11,328,000

	
30-Jun-18
	
$11,600,000

	
30-Sep-18
	
$13,574,000

	
31-Dec-18
	
$15,298,000

	
31-Mar-19
	
$16,529,915

	
30-Jun-19
	
$17,366,046

	
30-Sep-19
	
$18,306,693

	
31-Dec-19
	
$19,282,180

	
31-Mar-20
	
$20,175,132

	
30-Jun-20
	
$21,195,649

	
30-Sep-20
	
$22,343,730

	
31-Dec-20 and the last day of each calendar quarter occurring thereafter
	
$23,534,333

 

 

 

 

 

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Exhibit G-1 – Schedules to Intellectual Property Security Agreement

 

MidCap / Aptevo / Amendment No. 2 to Credit Agreement 

\\DC - 036639/000031 - 10670833National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Exhibit 10.27

 

	

Note: Information has been omitted from this agreement pursuant to a request for confidential treatment, and such information has been separately filed with the Securities and Exchange Commission. The omitted information has been marked with a bracketed asterisk (“[*]”).

 

May 25, 2011

 

Desmond Taylor

National Vision, Inc.

296 Grayson Highway

Lawrenceville, GA 30046

Des.taylor@nationalvision.com

Via Electronic Mail 

 

Dear Mr. Taylor:

This Letter Agreement reflects the mutual understanding of National Vision, Inc. (“Customer”) and Essilor of America, Inc. (“Essilor”) regarding Customer’s purchase of direct lenses from Essilor for the Term (as hereinafter defined). This Letter Agreement will become effective on notification of signature by both parties.

Background

Customer currently operates a number of retail stores (the “Retail Stores”) that provide prescription ophthalmic lenses and related services to consumers, including both single vision and multi-focal lenses (the “Direct Lenses”). Essilor is a leading manufacturer of lens products and operates an extensive network of optical laboratories. The parties have agreed that, subject to the terms of this Letter Agreement, Essilor will sell Direct Lenses to Customer’s Retail Stores and owned laboratory and distribution center operations and ship, for the account of Customer, Direct Lenses to Customer’s contracted laboratories outside of the U.S. as more particularly described below, and that Customer will purchase Direct Lenses from Essilor.

Direct Lenses

From and after September 1, 2011, and subject to the compliance by Essilor with the terms and conditions of this Letter Agreement, Customer grants Essilor the sole and exclusive right to provide the Direct Lenses (including digitally surfaced lenses) listed on the price list set forth in Schedule A, attached hereto (the “Price List”), to Customer’s Retail Stores and owned laboratory and distribution center operations; provided, however, Customer will not, with respect to the Direct Lenses described on the Price List, be obligated to purchase from Essilor lenses for which Essilor cannot provide an equivalent or better product. For the avoidance of doubt, except as provided above with respect to exclusivity, the provisions of this Letter Agreement are effective for the Term, as hereafter defined.

The parties agree that, except as provided in the following sentence, Essilor will not sell lenses directly to Customer’s Hong Kong partner laboratory (“HKO”) or Mexico partner laboratory (“OMX”) under this Letter Agreement and that all Direct Lenses purchased hereunder that are to be processed by HKO or OMX will be purchased by Customer. Notwithstanding the foregoing, Essilor will reasonably consider alternative arrangements for the supply by Essilor of lenses to HKO and OMX, which alternative arrangements may include the direct supply by Essilor of lenses to HKO and OMX.

Notwithstanding the foregoing, Customer agrees that the Direct Lenses supplied by Essilor pursuant to this Letter Agreement shall be utilized solely for resale in Customer’s retail establishments and shall not be resold in a wholesale context.

 

Page 1 of 10

National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

	
Confidential treatment has been requested with respect to information contained within the [*] marking. Such portions have been omitted from this filing and have been separately filed with the Securities and Exchange Commission.

Term

The term of this Letter Agreement shall extend for a period starting on the date set forth above and expiring on August 31, 2016 (the “Term”), unless terminated earlier in accordance with the provisions of this Letter Agreement, and the Price List will be effective as of the date of this Letter Agreement for any orders Customer may submit to Essilor on or after this date. In addition, the exclusivity provisions set forth above shall, with respect to any Direct Lenses described on the Price List, become effective if, when, and during such time as Essilor is able to supply the Direct Lenses to Customer in accordance with the provisions of this Letter Agreement. Customer understands and acknowledges that certain products may not be immediately available for shipment.

Pricing

During the Term, Customer shall compensate Essilor for Direct Lenses in accordance with prices set forth in the Price List.

Payment Terms

 

[*]

 

Shipping and Freight

The parties agree that shipments by Essilor to HKO and OMX will be either to (i) the addresses set forth on Schedule B for the respective facilities, (ii) other addresses for HKO and OMX within their current shipping jurisdictions, upon the reasonable discussion between the parties regarding the technicalities and terms related to shipping to such addresses, or (iii) to such other addresses as mutually agreed between the parties.

Other than as described below with respect to lenses processed by an Essilor laboratory, Essilor will be responsible for all freight and other charges including duties on shipments to Customer’s U.S. and OMX production facilities. Customer will be responsible for all freight and other charges including duties on shipments to HKO. Shipping method will be ground freight for stock replenishment orders and 2-Day freight to domestic labs. Customer agrees to cover actual shipping costs for all shipments of lenses processed by an Essilor laboratory that are then shipped to Customer from such laboratory. Other than with respect to shipments to HKO, which will be shipped Exworks, title for all shipments will pass and Customer will assume all risk of loss of product at the time of delivery, which will be F.O.B. point of delivery. Except as described above, Essilor shall ship lenses in accordance with practices and timeframes currently in effect for domestic shipments by Essilor to Customer.

 

Defect Rates

 

[*]

 

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National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Forecasting Information

Customer and Essilor agree to meet quarterly to review Customer’s upcoming planned promotions, sales initiatives, planned new store openings, and seasonality trends as they may impact Essilor’s supply chain forecasting.

Termination and Remedies

In addition to all other remedies provided by law or specified in this Letter Agreement, each of Customer and Essilor (the “Non-Breaching Party”) may immediately terminate this Letter Agreement by providing notice of such termination to the other party (the “Breaching Party”) upon the occurrence of any of the following events:

		a.	
The insolvency of, filing of a petition in bankruptcy by, against, or on behalf of, or appointment of a receiver or trustee for all or substantially all of the property of, the Breaching Party; or any dissolution, liquidation, or other insolvency proceeding by, against, or on behalf of the Breaching Party; or

		b.	
Breaching Party’s material breach of or material failure to perform any of the terms, conditions, or covenants contained in this Agreement that is not corrected within thirty (30) days after receipt of notice of such breach; provided, however, if the breach is not capable of being cured within such thirty (30) day period and the Breaching Party is diligently pursuing such a cure, the Breaching Party shall not be deemed to be in default. In no event shall such cure period exceed sixty (60) days.

Representations and Warranties

Each party represents and warrants to the other that on and as of the date of this Letter Agreement, each and every representation and warranty set forth is true and accurate.

Each party has full corporate power and authority to execute, deliver and perform the obligations contemplated by this Letter Agreement and this Letter Agreement and the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on the part of such party.

This Letter Agreement, as executed and delivered, constitutes legal, valid and binding obligations of each party enforceable in accordance with its terms. The execution, delivery and performance of this Letter Agreement does not violate or contravene any provision of law, or conflict with the Articles of Incorporation of either party or any other document or charter under which such party was established, or conflict with or result in the breach of any provision of any agreement to which such party is a party, or constitute a default or an event that, with the giving of notice, or the passing of time, would create such a default.

Essilor represents and warrants that (a) it possesses all federal, state and local licenses and permits necessary to manufacture and sell the products in accordance with the terms of this Letter Agreement, (b) the products manufactured by Essilor will be in accordance with legal and industry specifications (including ANSI standards) and will be free from defects in workmanship and material, and (c) Essilor shall comply with all federal, state and local laws and regulations applicable to the manufacture and sale of the products in accordance with the terms of this Letter Agreement.

 

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National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Force Majeure

In the event either party is prevented or delayed in the performance of any obligation required under the Agreement due to delays caused by fire, catastrophe, strikes or labor trouble, civil commotion, acts of God, governmental prohibitions or regulation, inability or difficulty to obtain materials or other causes beyond the performing party’s reasonable control, the performing party shall, within ten (10) days of the event causing such delay, provide written notice to the other party of the event causing the delay and the anticipated period of delay, and the period of such delay shall be added to the time for performance thereof. The performing party shall have no liability by reason of such permitted delays. In the event the performing party fails to provide notice to the other party of the force majeure delay within such ten (10) day period, the performing party shall not be excused from the timely performance of such obligation regardless of the cause. Notwithstanding the foregoing, Customer shall have the right, in the event of a force majeure delay that adversely affects the ability of Essilor to timely deliver the Direct Lenses under this Letter Agreement, to order any Direct Lenses from a source other than Essilor.

Confidentiality

The contents of this Letter Agreement and confidential information exchanged in connection therewith are deemed confidential, shall not be disclosed to third parties, and shall be treated under an existing non-disclosure agreement between the parties. Notwithstanding the foregoing, each party may disclose such matters (a) in connection with tax proceedings, arbitration, or litigation that involves the terms of this Letter Agreement and (b) to (i) its officers, directors, affiliates, employees, accountants, attorneys, advisors, and other individuals who need to know such contents in connection with their duties on behalf of such party; (ii) actual or potential financing sources, and other parties that may enter into business transactions with each party or its affiliates (including any Contract Laboratories, hereafter defined); and (iii) government authorities (including courts and administrative agencies) if required by or advisable under applicable legal requirements. The foregoing shall not prevent either party from disclosing the existence of their vendor/customer arrangement.

Confidentiality of Price List as to HKO and Mexico Laboratory

The parties acknowledge that Essilor considers the Price List confidential and that Customer intends to contract with HKO and laboratories in Mexico, and may in the future contract with other laboratories not owned or under common control with Customer (all the foregoing, “Contract Laboratories”) to process certain of the Direct Lenses for Customer. The parties accordingly agree that Customer will not contract with a Contract Laboratory for the processing of Direct Lenses unless and until either (a) the Contract Laboratory has entered into a customary confidentiality agreement, in a form and on terms substantially the same as that attached hereto as Schedule C, pursuant to which the Contract Laboratory has agreed to keep confidential the terms of the Price List or (b) Essilor and Customer have agreed upon procedures to enable the Contract Laboratory to process the Direct Lenses without having access to such terms (such procedure may include the direct shipment of the Direct Lenses to the Contract Laboratory). Essilor and Customer agree to work reasonably together to agree upon such procedures.

Relationships of the Parties

For purposes of the Letter Agreement and the transactions provided for herein, the parties to the Letter Agreement shall be deemed to be independent contractors. Nothing in the Letter Agreement is intended to create, nor shall it be construed to create, an employer-employee, franchisor-franchisee, joint venture or partnership relationship between the parties.

 

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National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Indemnification, Warranties and Limitation of Remedy and Liabilities

Each party, on behalf of its respective successors, heirs and assigns, agrees to protect, defend, hold harmless and indemnify the other party, its respective parent, subsidiaries and affiliated corporations, as well as their directors, officers and employees, from and against any and all expenses, claims (including third party claims), actions, liabilities, losses and damages of any kind whatsoever (including, without limitation of the foregoing, death or injury to persons) resulting or arising out of the performance of or failure of the indemnifying party, its respective agents, employees or permitted assignees, to perform any of their joint or respective obligations pursuant to the terms of the Agreement or from any misrepresentation or the omission or commission of any act, lawful or unlawful, by the indemnifying party or any of its agents, employees or permitted assignees.

EXCEPT AS PROVIDED FOR HEREIN, ESSILOR HEREBY DISCLAIMS ALL WARRANTIES, REPRESENTATIONS AND CONDITIONS, STATUTORY OR OTHERWISE, EXPRESS OR IMPLIED, OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. THE SOLE AND EXCLUSIVE REMEDY AVAILABLE TO SHALL BE AS PROVIDED IN THIS LETTER AGREEMENT. IN NO EVENT WILL EITHER PARTY BE LIABLE FOR ANY DIRECT, INDIRECT, SPECIAL, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES ON ANY LEGAL THEORY, WHETHER IN CONTRACT, TORT, EQUITY, OR AT LAW, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

Arbitration

Any controversy, dispute or claim arising out of the interpretation, performance or breach of the Agreement shall be resolved by binding arbitration at the request of either party, in accordance with the Commercial Arbitration Rules of the American Arbitration Association. The arbitrators shall apply New York substantive law and federal substantive law where state law is preempted. Civil discovery for use in such arbitration may be conducted in accordance with the provisions of New York law, and the arbitrator(s) selected shall have the power to enforce the rights, remedies, duties, liabilities and obligations of discovery by the imposition of the same terms, conditions and penalties as can be imposed in like circumstances in a civil action by a court of competent jurisdiction of the State of New York. The provisions of New York law concerning the right to discovery and the use of depositions in arbitration are incorporated herein by reference and made applicable to the Agreement. The arbitrators shall have the power to grant all legal and equitable remedies and award compensatory damages provided by New York law, subject to the limitations on damages set forth above. The arbitrators shall prepare in writing and provide to the parties an award including factual findings and the legal reasons on which the award is based. The arbitrators shall not have the power to commit errors of law or legal reasoning. Notwithstanding the above, in the event any party wishes to obtain injunctive relief or a temporary restraining order, such party may initiate an action for such relief in any court of competent jurisdiction. However, the courts shall not have the authority to review or grant any request or demand for damages.

Attorneys’ Fees: Interest

In the event that either party to the Letter Agreement institutes litigation or arbitration against the other party to enforce any of the terms or conditions of the Agreement, the prevailing party in such litigation or arbitration shall be entitled to recover reasonable costs and attorneys’ fees incurred by it from the other party. If any monthly statements are not timely paid by Customer, such obligation shall accrue interest at the lower of the highest interest rate allowed by applicable law and one and one-half percent (1 1⁄2%) per month from the date that each such obligation is due until paid.

 

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National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Waiver

The failure of either party to seek redress for violation of, or to insist upon strict performance of, any term, covenant or condition contained in the Agreement shall not prevent a similar subsequent act from constituting a default under the Agreement.

Previous Agreements, Modifications and Assignment

This Letter Agreement replaces any other preceding agreement, whether written or oral, between the parties on the subject matter hereof. No addition or modification to this Letter Agreement shall be valid unless made in writing signed by both parties hereto. If any provision or clause of this Letter Agreement is found to be null and void or unenforceable, the balance of this Letter Agreement will be construed as a whole to effect as closely as practicable the original intent of the parties. Neither party may assign any of its rights or obligations under this Letter Agreement to any other party without the prior written consent of the other, except for a transfer to an entity controlled by or under common control with the assigning party. Each and every assignee of any right(s) or obligation(s) under this Letter Agreement shall be bound by all of the terms and conditions hereof.

Notice

Any notices required or permitted to be given hereunder or under the Agreement shall be given in writing and shall be delivered (i) in person, (ii) by certified mail, postage prepaid, return receipt requested, (iii) by facsimile, or (iv) by a commercial overnight courier that guarantees next day delivery and provides a receipt, and such notices shall be addressed as follows:

	
Essilor:

	
Essilor of America, Inc.

	 	
Office of the General Counsel 

13555 N. Stemmons Freeway 

Dallas, Texas 75234 

Facsimile: (972) 241-1162

	
Customer: 

	
National Vision, Inc.

296 Grayson Highway 

Lawrenceville, GA 30046 

Attn: General Counsel 

With a copy to: Des Taylor

or to such other address as either party may from time to time specify in writing to the other party. Any notice shall be effective only upon delivery, which for any notice given by facsimile shall mean notice that has been received by the party to whom it is sent as evidenced by confirmation slip.

Miscellaneous

Each party shall take such actions, and sign such documents, as reasonably may be requested by the other party to obtain, confirm, maintain or enforce the rights granted in this Letter Agreement.

This Letter Agreement may be executed in any number of counterparts, and each such counterpart shall be deemed to be an original instrument, but all such counterparts together shall constitute but one agreement.

[signatures on next page]

 

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National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Very truly yours,

ESSILOR OF AMERICA, INC.

 

/s/ Steve Nussbaumer

Steve Nussbaumer

Vice President and General Manager – Retail

AGREED TO AND ACCEPTED:

NATIONAL VISION, INC.

	
By:

	/s/ D. F. TAYLOR 	 
	
Name:

	D. F. TAYLOR 	 
	
Title:

	Snr VP. MERCHANDISING	 

 

Page 7 of 10

National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

	
Confidential treatment has been requested with respect to information contained within the [*] marking. Such portions have been omitted from this filing and have been separately filed with the Securities and Exchange Commission.

 

Schedule A

(Price List)

[*]†

 

	
† A six-page schedule, for which confidential treatment has been requested, has been omitted. All such omitted material has been separately filed with the Securities and Exchange Commission.

 

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National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Schedule B

(Ship-to addresses for HKO and OMX)

Laboratorio Optimex, S.A. de C.V.

Eugenio Cuzin #945 Parque Industrial Belenes Norte

Zapopan, Jal. Mexico 45150

Hong Kong Optical, LLC.

Flat 03, 10/F, Kwong Sang Hong Centre

151 Hoi Bun Rd, Kwun Tong, Kowloon, Hong Kong

 

Page 9 of 10

National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Schedule C

(Form of Confidentiality Agreement)

 

Page 10 of 10

National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

May 25, 2011

Fernando Covarrubias Bernadez

Legal Representative

Laboratorio Optimex, S A. de C.V.

Eugenio Cuzin #945 Parque Industrial Belenes Norte

Zapopan, Jal. Mexico 45150

		Re:	
Laboratorio Optimex (“Optimex”)/National Vision, Inc. (“NVI”): Lens Supply Agreement with Essilor of America, Inc. (“Essilor”)

Dear Fernando:

NVI has entered into a lens supply agreement with Essilor pursuant to which Essilor will supply NVI with prescription ophthalmic lenses (including both single vision and multi-focal lenses) (the “Direct Lenses”). NVI anticipates that, pursuant to this supply agreement, Essilor may ship Direct Lenses to Optimex for processing on behalf of NVI pursuant to the optical processing agreement in effect between Optimex and NVI (the “Processing Agreement”).

Essilor has informed NVI that the pricing of the Direct Lenses (the “Pricing Information”) is competitive and proprietary information of Essilor and has requested that, through the execution and delivery of this letter agreement, Optimex will confirm its agreement to keep confidential the Pricing Information. In addition, Essilor has requested that Optimex confirm that Optimex will not resell any of the Direct Lenses, and will only process the Direct Lenses and deliver them to NVI for sale by NVI to its retail customers.

Accordingly, Optimex hereby confirms that it will keep the Pricing Information confidential, will use it solely in connection with the performance of its obligations under the Processing Agreement, and will not disclose the Pricing Information to any third party not affiliated with, or representing, advising or working with Optimex. Optimex further confirms that it will use and deliver the Direct Lenses only in accordance with the Processing Agreement and that Optimex will not sell or transfer the Direct Lenses to any entity other than NVI or its affiliates.

This letter agreement shall be governed by and construed in accordance with the domestic laws of the State of Georgia (U.S.A.) without giving effect to any choice or conflict of law provision or rule (whether of the State of Georgia (U.S.A.) or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Georgia (U.S.A.).

 

National Vision Holdings, Inc. has requested confidential treatment of this registration statement and associated correspondence pursuant to Rule 83 of the Securities and Exchange Commission.

 

Fernando Covarrubias Bernadez

Laboratorio Optimex, S.A. de C.V.

Page 2 of 2

If any legal action or other proceeding of any kind is brought for the enforcement of this letter agreement or because of any alleged breach, default or any other dispute in connection with any provision of this agreement, the successful or prevailing party shall be entitled to recover all reasonable attorney’s fees and other costs incurred in such action or proceedings, in addition to any relief to which it may be entitled.

Essilor shall be deemed a third party beneficiary of this letter agreement.

Please sign this letter and return it to me to indicate your agreement to the foregoing.

	 	
NATIONAL VISION, INC.

	 
	 	 	 	 
	 	
By:

		 
	 	
Its:

		 

Agreed and approved:

LABORATORIO OPTIMEX, S.A. DE C.V.

	
By:

		 
	 	 	 
	
Its:

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