Document:

Blueprint

 

Exhibit 10.10

 

 

 

 

FIRST AMENDMENT

 

 

TO

 

 

LOAN AGREEMENT

 

Dated
February 26, 2019

 

Between

 

 

LIGHTPATH TECHNOLOGIES, INC.,

a
Delaware corporation

 

 

and

 

 

BANKUNITED, N.A.,

a
national banking association

 

 

 

Dated
as of May 6, 2019

but
effective as of February 26, 2019

 

 

 

1

 

 

FIRST AMENDMENT TO

LOAN AGREEMENT

 

THIS
FIRST AMENDMENT TO LOAN AGREEMENT (“First Amendment”) is dated as of
May 6, 2019, but effective as of February 26, 2019, by and between
LIGHTPATH TECHNOLOGIES,
INC., a Delaware corporation, (“Borrower”), and BANKUNITED, N.A., a national banking
association (“Lender”).

 

RECITALS

 

A.           Borrower
and Lender are the parties to a Loan Agreement dated as of February
26, 2019 (the “Loan
Agreement”).

 

B.           Borrower
and Lender have determined that it is the best interest of each of
them to amend the Loan Agreement to more accurately reflect their
understandings at the time the Loan Agreement was
executed.

 

NOW,
THEREFORE, the parties hereto, intending to be legally bound,
hereby agree as follows:

 

1.           The
Recitals set forth above are true and correct and are incorporated
herein by reference. Unless otherwise defined, all initially
capitalized terms in this First Amendment shall be as defined in
the Loan Agreement.

 

2.           The
definition of “Fixed Charge Coverage Ratio” as set
forth in Section 1.1 of the Loan Agreement is deleted in its
entirety and is replaced with the following:

 

“Fixed Charge Coverage
Ratio” – Means, as of any date, the ratio of (a)
the sum of net income, depreciation, amortization, interest
expense, taxes, non-cash stock compensation expense, non-cash
foreign exchange expense, losses on warrants and approved
integration costs (capped at $500,000.00), plus all other non-cash
expenses as deemed applicable by Lender in its discretion, less
cash taxes paid, gains on warrants, distributions, increases in due
from related, and non-financed capital expenditures, to (b) for the
initial four (4) testing periods, beginning March 31, 2019, twelve
(12) month pro forma scheduled principal and interest payments to
Lender (and, for avoidance of doubt, not to Borrower’s former
lender) and all capital lease payments, in each case measured as of
the last day of the most recently ended four (4) consecutive fiscal
quarters for which financial statements are required to be
delivered pursuant to Section 6.9(a). After the initial four (4)
testing periods subparagraph (b) will revert to actual scheduled
principal and interest payments (including capital leases
payments).

 

3.           Except
as amended hereby the Loan Agreement remains in full force and
effect.

 

 [SIGNATURE
PAGES FOLLOW]

 

 

 

2

 

 

IN WITNESS WHEREOF the parties have executed this
First Amendment as of the date first written above.

 

 

 

	

 

	
BORROWER:

	

 

	

 

	
 

	

 

	

 

	
LIGHTPATH
TECHNOLOGIES, INC.,

	

 

	

 

	
a Delaware
corporation

	

 

	

 

	

 

	

 

	

 

	

	
By:  

	
/s/ J. James
Gaynor  

	

 

	

 

	

 

	
J.
James Gaynor, President	

 

	

 

	

 

	

	

 

	

 

	

LENDER: 

	

 

	

 

	

 

	

	

 

	

 

	

BANKUNITED, N.A., a national banking
association 

	

 

	

 

	

 

	

	

 

	

 

	

By:

	

/s/ Jackson
Young

	

 

	

 

	

 

	

Jackson Young,
Senior Vice President

	

 

 

The
following Guarantors acknowledge and consent to this First
Amendment as of the date first written above.

 

	

 

	
GUARANTORS:

	

 

	

 

	
 

	

 

	

 

	

GELTECH INC., a Delaware
corporation  

	

 

	

 

	

 

	

 

	

	
By:  

	
/s/ J. James
Gaynor

	

 

	

 

	

 

	
J. James Gaynor,
President

	

 

	

 

	

 

	

	

 

	

 

	

ISP OPTICS CORPORATION, a New York
corporation  

	

 

	

 

	

	

 

	

 

	

 

	

/s/ J. James
Gaynor

	

 

	

 

	

 

	

J. James Gaynor,
President

	

 

	

 

	

 

	

	

 

	

 

	

LIGHTPATH OPTICAL INSTRUMENTATION (SHANGHAI)
CO., LTD., a company formed under the law of the
People’s Republic of China  

	

 

	

 

	

	

 

	

 

	

 

	

/s/ J. James
Gaynor

	

 

	

 

	

 

	

	

 

	

 

	

LIGHTPATH OPTICAL INSTRUMENTATION (ZHENJIANG)
CO., LTD., a company formed under the law of the
People’s Republic of China  

	

 

	

 

	

	

 

	

 

	

 

	

/s/ J. James
Gaynor

	

 

	

 

	

 

	

	

 

	

 

	

ISP OPTICS LATVIA, SIA, a company formed
under the law of the Republic of Latvia  

	

 

	

 

	

	

 

	

 

	

 

	

/s/ J. James
Gaynor

	

 

 

 

3cvia-ex101_8.htm

 

Exhibit 10.1

Covia Holdings Corporation

3 Summit Park Drive, Suite 700

Independence, Ohio 44131

 

May 8, 2019

 

Mr. Richard A. Navarre

  Chairman of the Board

Covia Holdings Corporation

3 Summit Park Drive, Suite 700

Independence, Ohio 44131

 

Re:Interim President and CEO Appointment

 

Dear Rick:

 

On behalf of Covia Holdings Corporation (the “Company”), I am pleased to provide you with this letter agreement setting forth the principal terms of the compensation package to be provided to you by the Company for your services as interim President and Chief Executive Officer of the Company, which appointment was effective on May 7, 2019 at 5:00 p.m. Eastern Time.

 

	
 
	
1.
	
Duties; Time Commitment.  During your service as interim President and Chief Executive Officer of the Company, you will be a full-time employee of the Company reporting to the Board of Directors of the Company (the “Board”) and having all of the duties and responsibilities that are commensurate with your position.  Your job duties will be based from the Company’s corporate headquarters in Independence, Ohio, from which you will commute on a reasonable basis, but you also will be expected to travel periodically for business purposes.  You will continue your service on the Board and you will continue to serve as the Chairman of the Board, subject to any limitations imposed by applicable law or the Company’s organizational documents.  However, you will not be eligible to receive any cash retainers for your continued service on the Board or any non-employee director equity grants or other director compensation during your service as interim President and Chief Executive Officer (except as specifically provided herein).  (Notwithstanding the foregoing, nothing herein or your employment with the Company as interim President and Chief Executive Officer will interfere with the vesting of previously issued non-employee director equity grants.)  In addition, so long as you are serving as interim President and Chief Executive Officer of the Company, you may not serve on the Audit Committee of the Board or on any other committee of the Board requiring “independence” within the meaning of the rules of the Securities and Exchange Commission or the listing requirements of the New York Stock Exchange.

 

	
 
	
2.
	
Term.  It is contemplated that your employment with the Company as interim President and Chief Executive Officer will continue until a replacement permanent President and Chief Executive Officer is appointed.  However, if your service as interim President and Chief Executive Officer is required to continue for more than six (6) months, you and the Company will reassess your appointment, including its impact on your ability to serve as an independent, non-employee director on the Board following your cessation of service as interim President and Chief Executive Officer, and consider any mutually acceptable modifications that may be necessary to this letter agreement and your compensation package as set forth herein.  It is expected that, upon the appointment of a replacement permanent President and Chief Executive Officer and your cessation of service as interim President and Chief Executive Officer, you will continue your service on the 

 

 

	
 
		
Board in the same capacities as in effect immediately prior to your appointment as interim President and Chief Executive Officer.  To that end, should any annual non-employee director equity grants be made during your employment as interim President and Chief Executive Officer, upon ceasing to be an employee of the Company and during the subsequent continuation of your service on the Board, you will be awarded a pro-rated amount based the time remaining in the period over which such non-employee director equity award is scheduled to vest (and which excludes the time of your employment as interim President and Chief Executive Officer).  

 

	
 
	
3.
	
Base Salary.  During the period of your employment as interim President and Chief Executive Officer of the Company, the Company initially will pay you a base salary at the annual rate of $1,800,000 in accordance with the usual payroll practices of the Company and subject to all applicable withholdings and deductions, but at no time less frequently than equal monthly payments.  Salaries for all employees are subject to change as business conditions dictate, and your salary will be reviewed and may be increased (but not decreased) periodically by the Board (or its Compensation Committee).

 

	
 
	
4.
	
Success Bonus.  In addition, upon the formal appointment of a replacement to succeed you as the President and Chief Executive Officer of the Company, you will be entitled to receive a lump sum cash payment in an amount equal to $300,000, subject to all applicable withholdings and deductions, payable within thirty (30) days following the effective date of the formal appointment of such replacement, subject to your continued service with the Company through the effective date of such appointment (although, if the Company terminates you without cause, as such term is defined in Section 2.5(a) of the Company’s 2018 Omnibus Incentive Plan, before the effective date of such appointment, you shall still be entitled to the Success Bonus if otherwise awardable).  

 

	
 
	
5.
	
Equity Matters.  Contemporaneously with your execution of this Agreement, you also will receive a one-time restricted stock unit award with a grant date fair value of $1,200,000 under the Company’s 2018 Omnibus Incentive Plan pursuant to the terms and conditions of a restricted stock unit award agreement in the form attached hereto as Exhibit A.  In addition, during your service as interim President and Chief Executive Officer of the Company, you may be considered to receive additional equity and other long-term incentive awards under any applicable plan adopted by the Company for which employees are generally eligible.  The level of your participation in any such plan, if any, will be determined in the sole discretion of the Board (or its Compensation Committee) from time to time.

 

	
 
	
6.
	
Business Expenses.  You will be reimbursed by the Company for reasonable business expenses incurred in connection with the performance of your duties hereunder in accordance with Company policies as in effect from time to time.  In addition, during your appointment as interim President and Chief Executive Officer of the Company, the Company will pay or reimburse you for the cost of your reasonable commuting expenses for your travel to and from the Cleveland, Ohio metropolitan area, and for your reasonable lodging and automobile expenses incurred in the Cleveland, Ohio metropolitan area.  All amounts payable under this paragraph will be paid or reimbursed only during the period of your service as interim President and Chief Executive Officer of the Company, and will be subject to your presentation of reasonable substantiation and documentation as the Company may specify from time to time and to the procedures set forth in the Company’s expense reimbursement programs, as in effect at the time the expenses are incurred.

 

	
 
	
7.
	
Employee Benefits.  You will be immediately eligible to participate in all health benefits, insurance programs, pension and retirement plans, and other employee welfare benefits plans maintained by the Company for its employees generally in accordance with the terms thereof (and 

2

 

	
 
		
subject to any applicable waiting periods or other eligibility requirements).  You also will be entitled to annual paid time off in accordance with the Company’s policy on accrual and use applicable to employees as in effect from time to time.  You acknowledge and agree that you will remain subject to the Company’s code of conduct and other written policies, as may be amended from time to time.

 

	
 
	
8.
	
Indemnification; Directors’ and Officers’ Liability Insurance.  Your Indemnification Agreement with the Company dated June 5, 2018 is incorporated herein by reference and will remain in full force and effect in accordance with all of the terms and conditions thereof, and the parties agree that such Indemnification Agreement applies to your employment with the Company in the capacity as interim President and Chief Executive Officer.

 

	
 
	
9.
	
At-Will Employment.  Your employment with the Company will be “at-will” and may be terminated by you or the Company at any time with or without notice for any (or no) reason.  You will not have any contractual right to severance benefits in connection with any termination of your service as interim President and Chief Executive Officer of the Company, except as may be otherwise determined by the Board (or its Compensation Committee) in its sole discretion.

 

	
 
	
10.
	
Governing Law.  This letter agreement will be governed by, and construed under and in accordance with, the internal laws of the State of Ohio, without regard to the choice of law principles thereof, except that all matters related to any equity awards granted to you will be governed by the internal laws of the State of Delaware, without regard to the choice of law principles thereof.

 

	
 
	
11.
	
Entire Agreement.  This letter agreement constitutes the entire agreement between you and the Company with respect to the subject matter hereof and supersedes any and all prior agreements or understandings between you and the Company with respect to the subject matter hereof, whether written or oral.  This letter agreement may be amended or modified only by a written instrument executed by you and the Company.

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

3

 

 

Rick, we are excited about your agreeing to serve the Company as interim President and Chief Executive Officer.  Please feel free to contact me if you have any questions or concerns regarding your compensation package as outlined above.  If this letter accurately reflects your understanding as to your compensation package for serving as interim President and Chief Executive Officer of the Company, please sign and date one copy of this letter and return the same to me for the Company’s records.

 

Very truly yours,

 

COVIA HOLDINGS CORPORATION

 

 

By: /s/ Jean-Pierre Labroue

 

Name:  Jean-Pierre Labroue

 

Title:  Chairman of the Compensation Committee

 

 

The above terms and conditions accurately reflect our understanding regarding the terms and conditions of my employment as interim President and Chief Executive Officer of the Company, and I hereby confirm my agreement to the same.

 

 

Dated:  May 8, 2019/s/ Richard A. Navarre

Richard A. Navarre

Signature Page to Letter Agreement

 

EXHIBIT A

 

RESTRICTED STOCK UNIT AWARD AGREEMENT

 

 

[Separately provided by the Company.]

A-1

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