Document:

a2020salaryreductioncons

                                                                                                                                 March 27, 2020    [Name, Address]    Dear _____________:    This letter will confirm your consent to a ___% reduction in the Base Compensation that would  otherwise be payable to you commencing on April 1, 2020 pursuant to Section 3.1 of your Employment  Agreement with the Company dated as of _____________, 20__ (the “Employment Agreement”).      Your consent to the Base Compensation reduction described above will not affect your incentive  compensation calculation for the 2020 fiscal year or any separation benefits which may become  payable under your Employment Agreement or any other agreement with the Company in the absence  of your consent. Accordingly, your Base Compensation for purposes of any separation benefits which  may become payable to you will be based upon your Base Compensation prior to the reduction.    By signing the Consent section below, you agree to the reduction in your Base Compensation described  in this letter.  Accordingly, unless your Base Compensation is further reduced without your consent and  until your Base Compensation is restored to what it was prior to the reduction, the Company’s failure to  pay you your full Base Compensation will not constitute a breach of your Employment Agreement that  might otherwise entitle you to separation benefits and no right to such separation benefits will be  triggered as a result of the reduction in your Base Compensation described herein.  You further  acknowledge that while the Company is hopeful of restoring your Base Compensation to what it was  prior to the reduction as soon as possible, no assurances are being provided in that regard.    We very much appreciate your consent to the reduction in your Base Compensation and your  agreement to join other members of the senior management team who will also have a reduction in their  base compensation during this challenging ti me.                                            Sincerely,                                                                                    BRIGGS & STRATTON CORPORATION                                                                                                                              [Name, Title]                                                                                     CONSENT    I hereby consent to a reduction in the Base Compensation that would otherwise be payable to me under  my Employment Agreement commencing on April 1, 2020 and acknowledge that such reduction will  not constitute a breach of my Employment Agreement or entitle me to separation benefits under the  Employment Agreement.                                                                                                                                [Name]                                                                          

 

                                                                                                                                 March 30, 2020    [Name, Address]    Dear _____________:    This letter will provide clarification to you concerning the consent which the Company requested you  and the other elected officers provide on March 27, 2020 relating to a reduction in your Base  Compensation (the “Reduction Request”).  Following the issuance of the Reduction Request, certain of  the officers identified concerns and ambiguities relating thereto and not all officers were willing to sign.   The Company believes that its haste in documenting the circumstances of the Reduction Request  resulted in the concerns and ambiguities that were raised and that it is in its and the officers’ best  interest to clarify those concerns and ambiguities for everyone, in order to achieve unanimity in  approach and ensure the retention and continued focus of the officers during the COVID-19 challenges.      As discussed with the senior team over the course of the last week or so, the salary reduction is being  implemented in order to address temporary cash flow uncertainties associated with the COVID-19  pandemic, with the goal of reversing the salary reduction for all Company salaried employees,  including the officers, by the beginning of June 2020.  However, there is no assurance that the COVID- 19 related uncertainties will resolve by such time and, therefore, there is no assurance that the Company  will not maintain the salary reduction beyond such time.  As you know, the Company’s board of  directors has waived its entitlement to board fees payable in the fourth fiscal quarter as well.      Consistent with the timing discussed prior to the issuance of the Reduction Request and the duration of  the board fee waiver, the Company deems any consent given by an officer to be effective until the  earlier of the reversal of the salary reduction by the Company or the end of fiscal 2020.  If the Company  is not in a position to reverse the salary reduction by the end of fiscal 2020, it will seek an extension of  your consent at that time, which you may provide or not, in your sole discretion.        This letter shall be deemed incorporated into and a part of the Reduction Request (collectively, the  “Consent”).  The undersigned employee acknowledges that the issuance of this letter is deemed  sufficient consideration to support the enforceability of the Consent.                                            Sincerely,                                                                                    BRIGGS & STRATTON CORPORATION                                                                                                                              [Name, Title]                                                                                        Acknowledged:                                              [Name]clsd-ex101_89.htm

Exhibit 10.1

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

This CONSENT AND FIFTH AMENDMENT to Second Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into as of March 11, 2020, by and among SILICON VALLEY BANK, a California corporation (“Bank”), as collateral agent (in such capacity, “Collateral Agent”), Bank in its capacity as a Lender, and the other Lenders party to that certain Second Amended and Restated Loan and Security Agreement dated as of May 14, 2018 (as the same may from time to time be amended, modified, supplemented or restated, including without limitation by that certain Consent and First Amendment to Second Amended and Restated Loan and Security Agreement dated as of July 3, 2019, that certain Consent and Second Amendment to Second Amended and Restated Loan and Security Agreement dated as of August 29, 2019, that certain Third Amendment to Second Amended and Restated Loan and Security Agreement dated as of October 18, 2019, and that certain Consent and Fourth Amendment to Second Amended and Restated Loan and Security Agreement dated as of October 22, 2019, collectively, the “Loan Agreement”) (together with Bank, each a “Lender” and collectively, the “Lenders”), and CLEARSIDE BIOMEDICAL, INC., a Delaware corporation (“Borrower”).

Recitals

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

B.Borrower has informed Lenders that it desires to grant an exclusive license to Arctic Vision (Hong Kong) Limited, with a principal place of business at 23/F Nan Fung Tower 88 Connaught Road C & 173 Des Voeux Road C Central HK (“Arctic Vision”), to develop, manufacture, have manufactured, distribute, promote, market, and otherwise commercialize the Licensed Products (as such term is defined in the License Agreement) in (i) Mainland China, (ii) Taiwan, (iii) Hong Kong, (iv) South Korea, and (v) Macau, pursuant to the terms of that certain License Agreement by and among Borrower, Arctic Vision, and solely with respect to Section 17.11 of the License Agreement (Guaranty), Arctic Vision (Cayman) Limited with a principal place of business at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands, dated as of March 10, 2020 and attached hereto as Annex I (the “License Agreement”).  In connection therewith, Arctic Vision has agreed, among other things, to pay to Borrower an upfront payment in the amount of Four Million Dollars ($4,000,000) plus various conditional payments and royalties.

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

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

E.Lenders have agreed to so consent to Borrower’s entry into the License Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

 

 

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

1.Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

2.Consent.  Subject to the terms of Section 8 below, Lenders hereby consent to Borrower’s entry into and performance of the License Agreement attached as Annex I to this Amendment (without giving effect to any subsequent amendments or changes thereto). 

3.Amendments to Loan Agreement. 

3.1Section 14.1 (Definitions).  The following defined terms and their respective definitions hereby are added or amended and restated in their entirety, as appropriate, in Section 14.1 of the Loan Agreement to read in their entirety to read as follows: 

“Arctic Vision License” means that certain License Agreement by and among Borrower, Arctic Vision (Hong Kong) Limited, with a principal place of business at 23/F Nan Fung Tower 88 Connaught Road C & 173 Des Voeux Road C Central HK (“Arctic Vision”), and solely with respect to Section 17.11 of the License Agreement (Guaranty), Arctic Vision (Cayman) Limited with a principal place of business at Cricket Square, Hutchins Drive, P.O. Box 2681, Grand Cayman KY1-1111 Cayman Islands, dated as of March 10, 2020 as attached as Annex I to the Fifth Amendment (without giving effect to any subsequent amendments or changes thereto), pursuant to which Borrower has granted Arctic Vision an exclusive license to develop, manufacture, have manufactured, distribute, promote, market, and otherwise commercialize Licensed Products (as such term is defined therein) in (i) Mainland China, (ii) Taiwan, (iii) Hong Kong, (iv) South Korea, and (v) Macau.

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

“Fifth Amendment Effective Date” is March 11, 2020.

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

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

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4.1Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and is continuing;

4.2Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

4.3The organizational documents of Borrower delivered to Lenders on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect.

5.Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

6.Ratification of Intellectual Property Security Agreement.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of August 29, 2019 between Borrower and Bank, and acknowledges, confirms and agrees that said Intellectual Property Security Agreement (a) contains an accurate and complete listing of all Intellectual Property Collateral (as defined therein) and (b) shall remain in full force and effect.

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

8.Counterparts.  This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

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

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

[Balance of Page Intentionally Left Blank]

 

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

 

			
	
BORROWER:
	
 
	
 

	
 
	
 
	
 

	
CLEARSIDE BIOMEDICAL, INC.
	
 
	
 

	
 
	
 
	
 

	
By       /s/Charles A. Deignan
	
 
	
 

	
Name: Charles A. Deignan
	
 
	
 

	
Title:   CFO
	
 
	
 

	
 
	
 
	
 

	
 

COLLATERAL AGENT AND LENDER:
	
 
	
 

	
 
	
 
	
 

	
SILICON VALLEY BANK
	
 
	
 

	
 
	
 
	
 

	
By         /s/ M. Scott McCarty
	
 
	
 

	
Name:   M. Scott McCarty
	
 
	
 

	
Title:     Director
	
 
	
 

	
 
	
 
	
 

	
 

LENDERS:
	
 
	
 

	
 
	
 
	
 

	
ELM 2016-1 TRUST
	
 
	
 

	
 
	
 
	
 

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

	
 
	
 
	
 

	
By        /s/ John O’Dea
	
 
	
 

	
Name:  John O’Dea
	
 
	
 

	
Title:    Authorized Signatory
	
 
	
 

	
 
	
 
	
 

	
ELM 2018-2 TRUST, as Assignee
	
 
	
 

	
 
	
 
	
 

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

	
 
	
 
	
 

	
By        /s/ John O’Dea
	
 
	
 

	
Name:  John O’Dea
	
 
	
 

	
Title:    Authorized Signatory
	
 
	
 

 

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

 

 

ANNEX 1

 

License Agreement

 

[See attached]

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