Document:

Management and Administrative Services Agreement with HVHC Inc.

 Exhibit 10.5 
 MANAGEMENT AND ADMINISTRATIVE SERVICES AGREEMENT 
 This Agreement is entered into effective as
of the 1st day of January 2007 by and between HVHC Inc. (“HVHC”) and Eye Care Centers of America, Inc. (“Subsidiary”). 
 WHEREAS, HVHC is a direct subsidiary of Highmark Inc. (“Highmark”) and is a holding company for vision related businesses, including that of Subsidiary; 
 WHEREAS, Subsidiary requires certain management, administrative and corporate services and facilities and equipment to conduct its business
operations; 
 WHEREAS, HVHC is prepared to provide certain management, administrative and corporate services and to make available
facilities and equipment to Subsidiary for Subsidiary’s business operations; and 
 WHEREAS, HVHC and Subsidiary desire to enter
into a formal agreement to identify and provide for the reimbursement of the cost of the services, facilities and/or equipment to be provided by HVHC to Subsidiary; 
 NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, and intending to be legally bound, HVHC and Subsidiary agree as follows: 
 ARTICLE I 
 HVHC
Responsibilities 
 HVHC shall make available to Subsidiary, during the term of this Agreement certain management, administrative and
corporate services (“Services”) and facilities and equipment (“Facilities”) mutually determined to be appropriate for HVHC to provide to assist Subsidiary in conducting its business operations. The Services may include, but are
not limited to, management, supervision, financial, accounting, investment, procurement, human resource services, information systems, communications, payroll, employee benefits, and other services as the parties may agree to from time to time. The
Facilities may include, but are not limited to, office floor space, telephones, furniture, building maintenance, and cleaning services and other Facilities as the parties may agree to from time to time. 
 HVHC shall provide the level of service requested by Subsidiary subject to the ability of HVHC staff to accommodate these requests. 

 ARTICLE II 
 Compensation for Services 
 Subsidiary agrees to pay HVHC in accordance with the terms set forth
below. The fees shall be fair and reasonable and consistent with the cost for HVHC to make the Services or Facilities available to Subsidiary. None of the charges to Subsidiary under this Agreement shall duplicate charges made to Subsidiary by
Highmark under any agreement similar to this Agreement. HVHC shall invoice Subsidiary on a monthly basis with the monthly fee including the following: 
  

	 	(i)	Corporate Level Expenses – Corporate Level Expenses includes those for various corporate functions and services, including but not limited to management, supervision,
financial, accounting, investment, procurement, payroll, employee benefits, human resources, and communications. Corporate Level Expenses will be allocated based on actual utilization or appropriate and reasonable methods for the relevant expense
(such as allocating costs for employee recruitment based on number of employees or hires). 

  

	 	(ii)	Direct Charges – Direct Charges are any external charges incurred and paid by HVHC on behalf of Subsidiary, and are charged directly by HVHC to Subsidiary at actual
cost. Examples include legal, consulting, or other professional services fees. 

  

	 	(iii)	Central Payments – Central Payments are expenses paid by HVHC which may benefit multiple subsidiaries or business segments. Central Payments may include, but are not
limited to, employee benefit programs for which the Subsidiary is a participant. Central Payments are to be allocated based on actual utilization or appropriate and reasonable methods for the relevant expense (for example, group insurance costs
allocated based on the number of FTEs). Standard rates may be used and adjusted on an interim basis throughout the year, and, at year-end, variances between the standard and actual rates will be distributed back to users or business segments based
upon actual costs. 

  

	 	(iv)	Payment – For each of the foregoing expenses and charges described in this Article II, HVHC shall invoice Subsidiary on a monthly basis. HVHC may, at its option,
electronically withdraw invoiced amounts from Subsidiary funds on deposit at financial institutions provided that, when appropriate, prior authorization has been obtained from Subsidiary’s Board of Directors. If funds of Subsidiary are not
available, withdrawal will occur as soon thereafter as funds become available. 

  

 2 

 ARTICLE III 
 Term and Termination 
 1. Term. This Agreement shall be effective the date first written above
and continue in effect for a term of one year thereafter. It shall renew automatically for successive terms of one year unless terminated as provided in Section 2 of this Article, unless otherwise stated herein. 
 2. Termination. This Agreement may be terminated: 
  

	 	(a)	on an anniversary date following a minimum of 30 days prior written notice by either party, 

  

	 	(b)	automatically on the filing of any voluntary or involuntary petition in bankruptcy, the application for appointment of a receiver, trustee or liquidator, or the making of a general
assignment for the benefit of creditors by or for Subsidiary, or 

  

	 	(c)	at any time by mutual agreement of the parties. 

 ARTICLE IV 
 Liability 
  

	 	A.	The parties agree to hold each other harmless, and in no event shall either one be liable to the other for loss of income or profit, incidental, indirect, special, or consequential
damages, arising out of any breach of this Agreement, or of obligations under this Agreement, or for any claim made against either one by any other party. 

  

	 	B.	The parties agree that HVHC personnel or officers who perform services for Subsidiary hereunder shall in the rendering of such services continue as employees of HVHC or Highmark for
purposes of Workmen’s Compensation, Unemployment Compensation and with respect to all other employee and retirement benefits. 

  

	 	C.	The provisions of this Article IV shall survive the expiration or earlier termination of this Agreement. 

  

 3 

 ARTICLE V 
 General 
  

	A.	Assignment 

 Except as otherwise provided herein,
neither party shall assign or subcontract this Agreement, or any interest herein, or any part of this Agreement without the other party’s prior written consent which shall not be unreasonably withheld. 
  

	B.	Applicable Law 

 The validity of this Agreement, the
construction and enforcement of its terms, and the interpretation of the rights and duties of the parties shall be governed by the laws of the Commonwealth of Pennsylvania. 
  

	C.	Waiver 

 No modification, amendment, supplement to
or waiver of this Agreement or any of its provisions shall be binding upon the parties hereto unless made in writing and duly signed by both parties. 
  

	D.	Entirety 

 This Agreement constitutes the entire
agreement between the parties and supersedes all previous agreements, promises and representations, whether oral or written, between the parties with respect to the subject matter hereof. 
  

	E.	Change in Ownership 

 Notwithstanding any provision
of this Agreement to the contrary, in the event that control or change in ownership of either party is acquired by a third party, this Agreement shall terminate immediately without the need for further notice or action by the non-acquired party.

  

 4 

 IN WITNESS WHEREOF, the parties hereto, each acting under due and proper authority, have executed
this Agreement as of the day, month and year first above written. 
  

			
	HVHC INC.
	By:	 	  

	Title:	 	  

	
	Eye Care Centers of America, Inc.
	By:	 	  

	Title:	 	  

  

 5Management and Administrative Services Agreement with Highmark Inc.

 Exhibit 10.6 
 ADMINISTRATIVE SERVICES AGREEMENT 
 This Agreement is entered into effective as of 1st day of
January 2007 by and between Eye Care Centers of America, Inc. (“Subsidiary”) and Highmark, Inc. (“Highmark”). 
 WHEREAS, Subsidiary is a Texas corporation which is affiliated with Highmark, a Pennsylvania non-profit, membership, non-stock corporation; 
 WHEREAS, Subsidiary requires certain administrative and corporate services and facilities and equipment to conduct its business operations; 
 WHEREAS, Highmark is prepared to provide certain administrative and corporate services and to make available facilities and equipment to
Subsidiary for Subsidiary’s business operations; and 
 WHEREAS, Subsidiary and Highmark desire to enter into a formal agreement
to identify and provide for the reimbursement of the cost of the services, facilities and/or equipment to be provided by Highmark to Subsidiary; 
 NOW, THEREFORE, in consideration of the premises and the mutual promises set forth herein, and intending to be legally bound, Subsidiary and Highmark agree as follows: 
 ARTICLE I 
 Highmark Responsibilities 
 Highmark shall make available to Subsidiary, during the term of this Agreement certain administrative and corporate services (“Services”) and
facilities and equipment (“Facilities”) mutually determined to be appropriate for Highmark to provide to assist Subsidiary in conducting its business operations. The Services may include, but are not limited to, financial, investment,
procurement, human resource services, information systems, communications, payroll, employee benefits, and other services as the parties may agree to from time to time. The Facilities may include, but are not limited to, office floor space,
telephones, furniture, building maintenance, and cleaning services and other Facilities as the parties may agree to from time to time. 
 Highmark shall provide the level of service requested by Subsidiary subject to the ability of Highmark staff to accommodate these requests. 

 ARTICLE II 
 Compensation for Services 
 Subsidiary agrees to pay Highmark in accordance with the terms set forth
below. The fees shall be fair and reasonable and consistent with the cost for Highmark to make the Services or Facilities available to Subsidiary. Highmark shall invoice Subsidiary on a monthly basis with the monthly fee calculated as follows:

  

	 	(i)	Corporate Level (Home Office) Expense – Corporate Level (Home Office) Expense includes various corporate functions and services, including but not limited to financial,
procurement, payroll, employee benefits, human resources, and communications. Based on information obtained from Subsidiary, an estimate of Corporate Level (Home Office) Expense will be calculated and provided to Subsidiary by September 30 for
the subsequent calendar year. This estimate will be finalized as a fixed monthly fee and provided to Subsidiary by December 15. This fixed monthly fee will not change throughout the calendar year unless the information previously obtained from
Subsidiary deviates more than 10% from actual results. Such a significant deviation will trigger the need for a settlement at which time the fee will be recalculated to reflect Highmark’s cost to make the services available to Subsidiary and
the Services actually used by Subsidiary. The recalculated fee will be applied for the entire calendar year, with any settlement amount, up or down, due at the time of recalculation. The flat monthly Corporate Level (Home Office) Expense fee in
effect for the current calendar year is set forth in Schedule A. 

  

	 	(ii)	Legal Expense – Legal represents the services performed by Highmark Legal in support of the subsidiary. Charges are based on cost incurred and actual time
reported by Highmark’s legal staff. 

  

	 	(iii)	Centralized Services – Centralized Services include various information system services, including, but not limited to, computer processing, network services, and
application development, and various Facilities, including, but not limited to, office floor space and furniture. The monthly fees will be based on actual utilization multiplied by the Centralized Services rates as set forth in Schedule B.
The rates in schedule B shall be updated annually by December 15 for the subsequent year. 

  

	 	(iv)	Direct Charges – Direct Charges are any external charges incurred and paid by Highmark on behalf of Subsidiary, and are charged directly by Highmark to Subsidiary at
actual cost. Examples include external audit fees, telephone toll charges, postage, express mail, equipment maintenance, etc. 

  

 2 

	 	(v)	Central Payments – Central Payments are expenses paid by Highmark which benefit multiple subsidiaries, business segments and/or cost centers. Central Payments include,
but are not limited to, pension, post retirement medical and group insurance, for which the Subsidiary is a participant. Central Payments are allocated using standard rates for pension (based on a % of salaries) and post retirement and group
insurance (based on the number of FTEs). (See Schedule A) Any variances between the standard rate and the actual rate will be monitored on an ongoing basis, and if material deviations occur, the standard rate will be adjusted during the year. At
year-end, rate variances will be distributed back to user affiliates, business segments and/or cost centers based upon actual costs. 

  

	 	 (vi)
	 Payment – For each of the foregoing expenses and charges described in this Article II, Highmark shall
invoice Subsidiary on a monthly basis. Highmark Treasury Services will electronically withdraw invoiced amounts by the fifteenth (15th) of the month provided that, when appropriate, prior authorization has been obtained from Subsidiary’s Board of Directors. If funds of Subsidiary are not available by the fifteenth (15th) of the month, withdrawal will occur as soon thereafter as funds become available. 

 ARTICLE III 
 Term and
Termination 
 1. Term. This Agreement shall be effective the date first written above and continue in effect for a term of one
year thereafter. It shall renew automatically for successive terms of one year unless terminated as provided in Section 2 of this Article, unless otherwise stated herein. 
 2. Termination. This Agreement may be terminated: 
  

	 	(a)	on an anniversary date following a minimum of 30 days prior written notice by either party, 

  

	 	(b)	automatically on the filing of any voluntary or involuntary petition in bankruptcy, the application for appointment of a receiver, trustee or liquidator, or the making of a general
assignment for the benefit of creditors by or for Subsidiary, or 

  

	 	(c)	at any time by mutual agreement of the parties. 

  

 3 

 ARTICLE IV 
 Liability 
  

	 	A.	The parties agree to hold each other harmless, and in no event shall either one be liable to the other for loss of income or profit, incidental, indirect, special, or consequential
damages, arising out of any breach of this Agreement, or of obligations under this Agreement, or for any claim made against either one by any other party. 

  

	 	B.	The parties agree that Highmark personnel who perform services for Subsidiary hereunder shall in the rendering of such services continue as employees of Highmark for purposes of
Workmen’s Compensation, Unemployment Compensation and with respect to all other employee and retirement benefits. 

  

	 	C.	The provisions of this Article IV shall survive the expiration or earlier termination of this Agreement. 

 ARTICLE V 
 General 
  

	 	A.	Assignment 

 Except as otherwise provided herein,
neither party shall assign or subcontract this Agreement, or any interest herein, or any part of this Agreement without the other party’s prior written consent which shall not be unreasonably withheld. 
  

	 	B.	Applicable Law 

 The validity of this Agreement, the
construction and enforcement of its terms, and the interpretation of the rights and duties of the parties shall be governed by the laws of the Commonwealth of Pennsylvania. 
  

	 	C.	Waiver 

 No modification, amendment, supplement to
or waiver of this Agreement or any of its provisions shall be binding upon the parties hereto unless made in writing and duly signed by both parties. 
  

 4 

	 	D.	Entirety 

 This Agreement constitutes the entire
agreement between the parties and supersedes all previous agreements, promises and representations, whether oral or written, between the parties with respect to the subject matter hereof. 
  

	 	E.	Change in Ownership 

 Notwithstanding any provision
of this Agreement to the contrary, in the event that control or change in ownership of either party is acquired by a third party, this Agreement shall terminate immediately without the need for further notice or action by the non-acquired party.

 IN WITNESS WHEREOF, the parties hereto, each acting under due and proper authority, have executed this Agreement as of the day,
month and year first above written. 
  

			
	Eye Care Centers of America, Inc.
		
	By:	 	  

	Title:	 	  

	
	HIGHMARK INC.
		
	By:	 	  

	 Title:
	 	  

  

 5 

 Schedule A 
 Highmark Inc. 
 2007 Home Office Charges 
 Prepared by Cost Management 
  

			
	  	  	ECCA
	 Home Office
	  	$62,500/Month
	 Highmark Legal
	  	Actual Cost & Time Reporting
	 Central Payment Rates
	  	
	 Pension
	  	11.44% of Salary
	 Post Retirement Medical and Group Insurance
	  	$800 per FTE per month

 Schedule B 
 HIGHMARK 
 2007 CENTRALIZED SERVICE RATES 
  

					
	 Centralized Service
	  	 Unit of Measure
	  	2007
Rate
	 Occupancy
	  		  	
	 Fifth Avenue Place
	  	per square foot	  	4.04
	 PAP
	  	per square foot	  	3.03
	 Camp Hill/Harrisburg
	  	per square foot	  	2.72
	 Erie/Williamsport/Johnstown
	  	per square foot	  	2.03
	 PAP Basement/Attic
	  	per square foot	  	1.28
	 Furniture
	  	per square foot	  	0.13
	 Harrisburg Data Center
	  	per square foot	  	27.16
	 Network Services
	  		  	
	 Phone Service
	  	per port/month	  	59.00
	 Workstation Solutions
	  	per pc unit/month	  	46.00
	 PC/LAN Services
	  	per FTE/month	  	131.00
	 Network Connectivity
	  	per FTE/month	  	115.00
	 Client Server
	  	per FTE/month	  	33.00
	 Data Processing
	  		  	
	 CPU Time
	  	per CPU minute	  	0.8755
	 Tape Mounts
	  	per mount	  	2.2166
	 Data Storage (DASD)
	  	per gigabyte/day	  	0.0537
	 Print Pages
	  	per page	  	0.0642
	 Print Shop
	  	actual job cost	  	1.00
	 Application Support & Development
	  		  	
	 Application Support & Development
	  	per hour	  	88.00

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