Document:

Exhibit 10.47

 

October 20, 2016

 

Nuo Therapeutics, Inc.

207A Perry Parkway

Suite 1 Gaithersburg, MD 20877

Attention: David Jorden

 

Deerfield SS, LLC

780 Third Avenue

New York, NY 10017

Attention: Lawrence Atinksy

 

		Re.	Nuo/Arthrex/Deerfield Letter Agreement

 

Mr. Jorden and Mr. Atinsky:

 

This letter agreement
(“Agreement”) sets forth the agreement between Arthrex, Inc. (“Arthrex”), Deerfield SS, LLC
(“Deerfield”) and Nuo Therapeutics, Inc. (“Nuo”), collectively the (“parties”), with respect
to the sale of certain Nuo assets to Arthrex and the resolution of outstanding issues between the parties. The parties have agreed
to the terms and conditions set forth in this Agreement. Accordingly, Arthrex, Nuo and Deerfield hereby agree as follows:

 

1.             Nuo/Deerfield Transition Services Agreement. Pursuant to a plan approved by the United States Bankruptcy Court
for the District of Delaware, on May 5, 2016, Nuo assigned to Deerfield (i) all of Nuo’s rights, title and interest in and
to its existing amended and restated license agreement with Arthrex, Inc. dated October 15, 2015 (the “License Agreement”),
(ii) all associated intellectual property owned by Nuo related to the License Agreement and (iii) all royalty and payment rights
thereunder (collectively, “Deerfield Assumed Rights and Assets”). Nuo and Deerfield also are parties to a Transition
Services Agreement, executed May 5, 2016, which is set to expire on October 15, 2016 related to services being performed under
the License Agreement (the “Transition Services Agreement”). Both Nuo and Deerfield agree that the term of that Transition
Services Agreement is hereby amended and extended to January 15, 2017. Nuo and Deerfield hereby agree that subject to Arthrex’s
payment of the amounts specified in Section 2 herein, Deerfield shall make three equal payments of $33,333.33 to Nuo, as consideration
for the extension of the term of the Transition Services Agreement. The three payments shall be made on October 28, 2016, November
15, 2016 and December 15, 2016, respectively.

 

2.             Nuo/Arthrex Production Equipment & Angel Devices Purchase. Nuo and Arthrex hereby agree that subject to
Arthrex’s payment of $201,200 to Nuo on October 28, 2016, Nuo hereby sells, conveys, transfers and assigns to Arthrex, free
and clear of all liens, charges, encumbrances, debts, obligations and liabilities whatsoever, Nuo’s title and interest in
and to the following (the “Transferred Assets”):

 

(a)             Angel Devices: All Nuo owned inventory of Products (as defined in the License Agreement (and spare parts therefor)
as set forth on Exhibit A; and

 

     

     

    

Arthrex/Deerfield/Nuo- Letter Agreement

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(b)             Production Equipment: All Nuo owned Production Equipment set forthon Exhibit B.

 

For purposes of clarification,
and notwithstanding the foregoing, the Transferred Assets do not include (i) any Intellectual Property Rights (as such term is
defined in the License Agreement) or (ii) any right, title or interest in or to the Deerfield Assumed Rights and Assets. Transferred
Assets do include (i) All existing Products, whether known or unknown at time of the Agreement (ii) All Nuo owned Production Equipment,
whether known and unknown at the time of the Agreement. Nuo’s obligations related to the Transferred Assets unknown at the
time of this Agreement are set forth in Section 3. The parties further acknowledge and agree that the Transition Services Agreement
remains in effect through January 15, 2017 and thereafter Nuo shall have no further obligations related to performing services
under the Transition Services Agreement or the License Agreement.

 

3.             Nuo Obligations Related to Transferred Assets. Nuo shall use commercially reasonable and good faith efforts
to facilitate the shipping of any Transferred Assets from locations where they are physically located. Nuo shall have the affirmative
obligation to notify Arthrex in writing of the discovery of any Transferred Assets that have not been listed on Exhibits A or B
hereto. From time to time after the date hereof, Nuo will execute and deliver, or cause to be executed and delivered, such other
instruments of conveyance, assignment, transfer and delivery and will take such other actions as Arthrex may reasonably request
in order to more effectively consummate the transactions contemplated hereby, transfer, convey, assign, and deliver to Arthrex
any of the Transferred Assets or enable Arthrex to exercise and enjoy all rights, benefits and obligations of Nuo with respect
thereto.

 

4.             Nuo/Arthrex- Transferred Asset Obligations. Pursuant to Section 2(c) of the License Agreement, Nuo has certain
responsibilities to transfer certain assets and rights to Arthrex. This Agreement does not alter, amend or nullify Nuo’s
duties under the License Agreement unless otherwise specified herein.

 

5.             Nuo Release of Claims. Nuo, for itself and its respective representatives, successors and assigns, hereby
forever fully and irrevocably releases and discharges Arthrex and its Affiliates and each of their respective predecessors, successors,
direct or indirect subsidiaries, members, managers, directors, officers, employees, agents and other representatives from any and
all actions, claims, demands, obligations, promises, agreements or liabilities of any kind whatsoever in law or equity and causes
of action of every kind and nature, or otherwise (including claims for damages, costs, expense, and attorneys’, brokers’
and accountants fees and expenses) for payments of Royalty (as defined in the License Agreement) owed to Nuo based on sales of
the Product (as defined in the License Agreement) occurring on or before June 30, 2016.

 

6.             Arthrex Release of Claims. Arthrex, for itself and its respective representatives, successors and assigns,
hereby forever fully and irrevocably releases and discharges Nuo, Deerfield and their Affiliates and each of their respective predecessors,
successors, direct or indirect subsidiaries, members, managers, directors, officers, employees, agents and other representatives
from any and all actions, claims, demands, obligations, promises, agreements or liabilities of any kind whatsoever in law or equity
and causes of action of every kind and nature, or otherwise (including claims for damages, costs, expense, and attorneys’,
brokers’ and accountants fees and expenses) arising under the License Agreement as of the date hereof.

 

     

     

    

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7.             No Assumption of Liabilities. It is expressly agreed and understood that neither Arthrex nor Deerfield is
assuming any liability or obligation of Nuo of any kind or nature whatsoever, whether accrued or unaccrued, contingent or noncontingent,
material or nonmaterial, or known or unknown as of the date of the Agreement.

 

8.             Confidentiality. The terms of this Agreement are confidential, and the terms shall not be disclosed by Nuo
without prior written approval by Arthrex and Deerfield. Notwithstanding any other provision of this Agreement, each party (such
party, the “Disclosing Party”) may disclose the terms of this Agreement: (i) to the extent required to comply with
applicable legal requirements including as part of regular securities law reporting requirements and/or in accordance with securities
regulatory authority or securities exchange rules, demands and/or practice; or (ii) to third party consultants, contractors, or
other service providers who are under a duty of confidentiality; provided, that the Disclosing Party shall be responsible
for any disclosure or use of the terms of this Agreement by such third party consultant, contractor or other service provider in
violation of the terms set forth herein (as if such person was bound by such terms).

 

9.             Assignability and Binding Effect. This Agreement constitutes the entire agreement among the parties with respect
to the subject matter hereof and shall inure to the benefit of the parties successors and assigns.

 

10.           Miscellaneous. No amendment, modification or discharge of this Agreement, and no waiver hereunder, shall be
valid or binding unless set forth in writing and signed by each party. No failure or delay by a party in exercising any right,
power or privilege under this Agreement will operate as a waiver thereof, nor will any single or partial exercise thereof preclude
any other or further exercise thereof or the exercise of any right, power or privilege under this Agreement. If any provision or
portion of this Agreement is determined by a court of competent jurisdiction to be invalid or unenforceable for any reason, in
whole or in part, then the remaining provisions of this Agreement shall be unaffected thereby and shall remain in full force and
effect to the fullest extent permitted by applicable law. This Agreement may be executed in one or more counterparts, each of which
will be deemed an original copy of this Agreement, and all of which, taken together, shall be deemed to constitute one and the
same agreement. The parties shall execute such further agreements, conveyances and other documents as may be reasonably requested
by either Party to effectuate the intent and any provisions of this Agreement.

 

11.           Governing Law; Jurisdiction. This Agreement and any dispute arising hereunder or in connection with the matters
contemplated hereby, whether in contract, tort or otherwise, shall be governed in all respects by the internal laws of the State
of Delaware. 

 

*       *       *

 

     

     

    

Arthrex/Deerfield/Nuo- Letter Agreement

Page 4

 

 

Please confirm your agreement
with the foregoing by signing and returning to the undersigned.

 

	 	Very truly yours,
	 	 	 
	 	ARTHREX, INC.
	 	 	 
	 	 	 
	 	By.	/s/ Christopher K. Lin
	 	Name.	Christopher K. Lin
	 	Title.	Deputy General Counsel & Director of Corporate Development
	 	 	 
	 	 	 
	 	DEERFIELD SS, LLC
	 	 	 
	 	By:    Deerfield Mgmt, L.P., its Manager
	 	 	 
	 	By:    J.E. Flynn Capital, LLC, its General Partner
	 	 	 
	 	 	 
	 	By.	/s/ David J. Clark
	 	Name.	David J. Clark
	 	Title.	Authorized Signatory

 

 

Accepted and Agreed this 20th day

of October, 2016.

 

NUO THERAPEUTICS, INC.

 

 

 

By.     /s/ David Jorden

Name.David Jorden

Title.  Chief Executive Officer

  

     

     

    

Arthrex/Deerfield/Nuo- Letter Agreement

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EXHIBIT A

 

 

 

 

     

     

    

Arthrex/Deerfield/Nuo- Letter Agreement

Page 6

 

 

EXHIBIT BEX-10.1

 Exhibit 10.1 

Execution 
 FIRST AMENDMENT TO
TERM LOAN CREDIT AGREEMENT 
 FIRST AMENDMENT TO TERM LOAN CREDIT AGREEMENT (this “First Amendment”), dated as of
October 20, 2016, among PARTY CITY HOLDINGS INC., a Delaware corporation (the “Borrower Agent”), PARTY CITY CORPORATION, a Delaware corporation (the “Subsidiary Borrower” and, together with the Borrower Agent,
the “Borrowers”), PC INTERMEDIATE HOLDINGS, INC., a Delaware corporation (“Holdings”), DEUTSCHE BANK AG NEW YORK BRANCH (“DBNY”), as administrative agent (in such capacity, the
“Administrative Agent”), each of the Persons party hereto as 2016 Replacement Lenders (as defined below) and certain Lenders constituting the Required Lenders. Unless otherwise indicated, all capitalized terms used herein and not
otherwise defined shall have the respective meanings provided such terms in the Credit Agreement referred to below (as amended by this First Amendment). 

W I T N E S S E T H: 

WHEREAS, the Borrowers, Holdings, the Administrative Agent, DBNY, as collateral agent (in such capacity, including any permitted successor
thereto, the “Collateral Agent”) under the Loan Documents, the subsidiaries of the Borrowers from time to time party thereto and each lender from time to time party thereto (the “Lenders”) have entered into a Credit
Agreement, dated as of August 19, 2015 (as amended, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”); 

WHEREAS, on the date hereof (prior to giving effect to this First Amendment, but after giving effect to the proposed voluntary prepayment of
Term Loans as specified in Section 2(c) hereof), there are outstanding Term Loans under the Credit Agreement (for purposes of this First Amendment, herein called the “Original Replaced Term Loans”) in an aggregate
principal amount of $1,226,600,000; 
 WHEREAS, in accordance with the provisions of Section 9.02(c) of the Credit Agreement,
Holdings and the Borrowers wish to amend the Credit Agreement to enable the Borrowers to refinance in full the outstanding Original Replaced Term Loans with the proceeds of 2016 Replacement Term Loans (as defined below) as more fully provided
herein; 
 WHEREAS, Holdings, the Borrowers, the Administrative Agent and the 2016 Replacement Lenders wish to amend the Credit Agreement to
provide for the refinancing in full of all outstanding Original Replaced Term Loans with the 2016 Replacement Term Loans, on the terms and subject to the conditions set forth herein; and 

WHEREAS, Credit Suisse Securities (USA) LLC (together with any of its affiliates, “CS”), Merrill Lynch, Pierce,
Fenner & Smith Incorporated, The Bank of Tokyo Mitsubishi UFJ, Ltd., Barclays Bank PLC, Goldman Sachs Bank USA, Macquarie Capital (USA) Inc., Morgan Stanley Senior Funding, Inc., Sumitomo Mitsui Banking Corporation and Wells Fargo
Securities, LLC (in each case, or any affiliates thereof) shall act as joint lead arrangers and joint bookrunners with respect to this First Amendment and the 2016 Replacement Term Loans provided for hereunder; 

 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, it is agreed as follows: 
 SECTION 1. Amendments to Credit Agreement. 

(a) (i) Subject to the satisfaction of the conditions set forth in Section 2 hereof, the 2016 Replacement Lenders hereby severally
agree to make 2016 Replacement Term Loans to the Borrowers on the First Amendment Effective Date (as defined below) in the aggregate principal amount of $1,226,600,000 to refinance all outstanding Original Replaced Term Loans in accordance with the
relevant requirements of the Credit Agreement (as amended hereby) and this First Amendment. It is understood and agreed that the 2016 Replacement Term Loans being made pursuant to this First Amendment and the Credit Agreement (as modified hereby)
shall constitute “Replacement Term Loans” as defined in, and pursuant to, Section 9.02(c) of the Credit Agreement and the Original Replaced Term Loans being refinanced shall constitute “Replaced Term Loans” as defined
in, and pursuant to, Section 9.02(c) of the Credit Agreement. Except as expressly provided in this First Amendment (including as to the Applicable Rate and call protection) and the Credit Agreement (as modified hereby), the 2016
Replacement Term Loans shall be on terms identical to the Original Replaced Term Loans (including as to maturity, Guarantors, Collateral (and ranking) and payment priority). 

(ii) On the First Amendment Effective Date, all then outstanding Original Replaced Term Loans shall be refinanced in full as follows: 

(w) The outstanding principal amount of the Original Replaced Term Loan of each Lender which (i) is an existing Lender
under the Credit Agreement prior to giving effect to this First Amendment (each, an “Existing Lender”) and (ii) is not party hereto as a 2016 Replacement Lender (a Lender meeting the requirements of clauses (i) and
(ii), each, a “Non-Converting Lender”) shall be repaid in full in Cash. 
 (x) To the extent any
Existing Lender has a 2016 Replacement Term Loan Conversion Amount (as defined in the Credit Agreement as amended hereby) that is less than the full outstanding principal amount of the Original Replaced Term Loan of such Lender, such Lender shall be
repaid in Cash in an amount equal to the difference between the outstanding principal amount of the Original Replaced Term Loan of such Lender and such Lender’s 2016 Replacement Term Loan Conversion Amount (the “Non-Converting
Portion”). 
 (y) The outstanding principal amount of the Original Replaced Term Loan of each Existing Lender which
has executed this First Amendment as a “2016 Converting Lender” (each, a “2016 Converting Lender”) shall automatically be converted into a term loan (each, a “Converted 2016 Replacement Term Loan”) in a
principal amount equal to such 2016 Converting Lender’s 2016 Replacement Term Loan Conversion Amount (each such conversion, a “2016 Term Loan Conversion”). 

  
 2 

 (z) Each Person that has executed this First Amendment as a “New 2016
Replacement Lender” (each, a “New 2016 Replacement Lender” and, together with the 2016 Converting Lenders, collectively, the “2016 Replacement Lenders”) severally agrees to make to the Borrowers a new term loan
(each, a “New 2016 Replacement Term Loan” and, collectively, the “New 2016 Replacement Term Loans” and, together with the Converted 2016 Replacement Term Loans, the “2016 Replacement Term Loans”) in
Dollars in a principal amount equal to the amount set forth opposite such New 2016 Replacement Lender’s name on Exhibit A hereto (as to any New 2016 Replacement Lender, its “2016 Replacement Term Loan Commitment”) on the
First Amendment Effective Date. 
 (iii) Each 2016 Replacement Lender hereby agrees to “fund” its 2016 Replacement Term Loan as
follows: (x) each 2016 Converting Lender shall “fund” its 2016 Replacement Term Loan to the Borrowers by converting all or a portion of its then outstanding principal amount of Original Replaced Term Loan into a 2016 Replacement Term
Loan in a principal amount equal to such 2016 Converting Lender’s 2016 Replacement Term Loan Conversion Amount as provided in clause (ii)(y) above and (y) each New 2016 Replacement Lender shall fund in Cash to the Borrowers an
amount equal to such New 2016 Replacement Lender’s 2016 Replacement Term Loan Commitment. 
 (iv) The Converted 2016 Replacement Term
Loans subject to the 2016 Term Loan Conversion shall be allocated ratably to the outstanding Borrowings of Original Replaced Term Loans (based upon the relative principal amounts of Borrowings of Original Replaced Term Loans subject to different
Interest Periods immediately prior to giving effect thereto). Each resulting “borrowing” of Converted 2016 Replacement Term Loans shall constitute a new “Borrowing” under the Credit Agreement and be subject to the same Interest
Period (and the same LIBO Rate, subject to any modification to the “floor” applicable thereto pursuant to this First Amendment) applicable to the Borrowing of Original Replaced Term Loans to which it relates, which Interest Period shall
continue in effect until such Interest Period expires and a new Type of Borrowing is selected in accordance with the provisions of Section 2.08 of the Credit Agreement. New 2016 Replacement Term Loans shall be initially incurred pursuant
to “borrowings” of LIBO Rate Loans which shall be allocated ratably to the outstanding “deemed” Borrowings of Converted 2016 Replacement Term Loans on the First Amendment Effective Date (based upon the relative principal amounts
of the deemed Borrowings of Converted 2016 Replacement Term Loans subject to different Interest Periods on the First Amendment Effective Date after giving effect to the foregoing provisions of this clause (iv)). Each such
“borrowing” of New 2016 Replacement Term Loans shall (A) be added to (and made a part of) the related deemed Borrowing of Converted 2016 Replacement Term Loans and (B) be subject to (x) an Interest Period which commences on
the First Amendment Effective Date and ends on the last day of the Interest Period applicable to the related deemed Borrowing of Converted 2016 Replacement Term Loans to which it is added and (y) the same LIBO Rate applicable to such deemed
Borrowing of Converted 2016 Replacement Term Loans. 
 (v) On the First Amendment Effective Date, the Borrowers shall pay in Cash
(a) all accrued and unpaid interest on the Original Replaced Term Loans through the First Amendment Effective Date and (b) to each Non-Converting Lender and each 2016 Converting Lender with a Non-Converting Portion (solely with respect to
such Non-Converting Portion), any breakage loss 

  
 3 

 
or expenses due under Section 2.16 of the Credit Agreement (it being understood that existing Interest Periods of the Original Replaced Term Loans held by 2016 Replacement Lenders
prior to the First Amendment Effective Date shall continue on and after the First Amendment Effective Date pursuant to preceding clause (iv) and shall accrue interest in accordance with Section 2.13 of the Credit Agreement
(as modified hereby) on and after the First Amendment Effective Date as if the First Amendment Effective Date were a new Borrowing date). Notwithstanding anything to the contrary herein or in the Credit Agreement, each 2016 Converting Lender agrees,
and each Existing Lender agrees (by execution of an Assignment and Assumption with respect to any 2016 Replacement Term Loans), to waive any entitlement to any breakage loss or expenses due under Section 2.16 of the Credit Agreement with
respect to the repayment of any Original Replaced Term Loans of any such Lender with the proceeds of 2016 Replacement Term Loans on the First Amendment Effective Date. 

(vi) Promptly following the First Amendment Effective Date, all Promissory Notes, if any, evidencing the Original Replaced Term Loans shall be
cancelled and returned to the Borrowers, and any 2016 Replacement Lender may request that its 2016 Replacement Term Loan be evidenced by a Promissory Note pursuant to Section 2.10(e) of the Credit Agreement. 

(vii) Notwithstanding anything to the contrary contained in the Credit Agreement, all proceeds of the New 2016 Replacement Term Loans (if any)
will be used solely to repay outstanding Original Replaced Term Loans of Non-Converting Lenders (if any) and outstanding Original Replaced Term Loans of 2016 Converting Lenders in an amount equal to the Non-Converting Portion (if any) of such 2016
Converting Lenders’ Original Replaced Term Loans, in each case, on the First Amendment Effective Date. 
 (b) Subject to the
satisfaction of the conditions set forth in Section 2 hereof, upon the making of the 2016 Replacement Term Loans, the Credit Agreement is hereby amended as follows: 

(i) The definition of “Alternate Base Rate” appearing in Section 1.01 of the Credit Agreement is
hereby amended by replacing the text “2.00%” appearing in clause (d) thereof with the text “1.75%” in lieu thereof. 

(ii) The definition of “Applicable Rate” appearing in Section 1.01 of the Credit Agreement is
hereby amended by amending and restating such definition in its entirety as follows: 
 “Applicable Rate”
means, for any day, with respect to any ABR Term Loan, 2.00%, and with respect to any LIBO Rate Term Loan, 3.00%. 
 (iii)
The definition of “Commitment” in Section 1.01 of the Credit Agreement is hereby amended by amending and restating it in its entirety as follows: 

“Commitment” means (i) with respect to each Lender on the Closing Date, the commitment of such Lender to
make the Term Loans hereunder in an aggregate amount not to exceed the amount set forth opposite such Lender’s name on the Commitment Schedule as such amount may be adjusted from time to time in accordance with this Agreement and (ii) with
respect to each New 2016 

  
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Replacement Lender on the First Amendment Effective Date, the commitment of such Lender to make the 2016 Replacement Term Loans as provided in Section 1 of the First Amendment in an
aggregate amount not to exceed the 2016 Replacement Term Loan Commitment of such New 2016 Replacement Lender, as such amount may be adjusted from time to time in accordance with this Agreement. The aggregate amount of the Lenders’ Commitments
on the Closing Date (immediately prior to the incurrence of the Term Loans on such date) is $1,340,000,000. The aggregate amount of the Lenders’ Commitments on the First Amendment Effective Date (immediately prior to the incurrence of the 2016
Replacement Term Loans on such date) is $1,226,600,000 less the aggregate principal amount of all 2016 Replacement Term Loan Conversion Amounts. 

(iv) The definition of “LIBO Rate” in Section 1.01 of the Credit Agreement is hereby amended by
replacing the text “1.00%” appearing in clause (x) of the proviso thereof with the text “0.75%” in lieu thereof. 

(v) The definition of “Term Loans” in Section 1.01 of the Credit Agreement is hereby amended by
amending and restating it in its entirety as follows: 
 “Term Loans” means (a) prior to the First
Amendment Effective Date and the making of the 2016 Replacement Term Loans pursuant to the First Amendment, a Loan by a Lender to the Borrowers pursuant to Section 2.01(a) and (b) on and after the First Amendment Effective Date and
upon the making of the 2016 Replacement Term Loans pursuant to the First Amendment, the 2016 Replacement Term Loans made pursuant to, and in accordance with the terms of, Section 2.01(b) and the First Amendment (including by way of the
2016 Term Loan Conversion); provided that on and after the incurrence of any Incremental Term Loans, Refinancing Term Loans, Extended Term Loans and Replacement Term Loans, the term “Term Loans” as used in
Section 9.05(g) shall include all such Incremental Term Loans, Refinancing Term Loans, Extended Term Loans and Replacement Term Loans, as the case may be. 

(vi) Section 1.01 of the Credit Agreement is hereby further amended by adding the following definitions in
appropriate alphabetical order as follows: 
 “2016 Converting Lender” has the meaning provided in the First
Amendment. 
 “2016 Replacement Term Loan” has the meaning provided in the First Amendment. 

“2016 Replacement Term Loan Commitment” has the meaning provided in the First Amendment. 

“2016 Replacement Term Loan Conversion Amount” shall mean, as to any 2016 Converting Lender, the amount
determined by the 2016 Replacement Term Loan Lead Arranger and the Borrower Agent as the final amount of such 2016 Converting Lender’s 2016 Term Loan Conversion on the First Amendment 

  
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Effective Date and notified to the Administrative Agent and each such 2016 Converting Lender by the 2016 Replacement Term Loan Lead Arranger on or prior to the First Amendment Effective Date. The
“2016 Replacement Term Loan Conversion Amount” of any 2016 Converting Lender shall not exceed (but may be less than) the principal amount of such 2016 Converting Lender’s Original Replaced Term Loans. All such determinations made by
the 2016 Replacement Term Loan Lead Arranger and the Borrower Agent shall, absent manifest error, be final, conclusive and binding on the Borrowers and the Lenders, and the Administrative Agent, the 2016 Replacement Term Loan Lead Arranger and the
Borrowers shall have no liability to any Person with respect to such determination absent gross negligence or willful misconduct, in each case, as determined by a court of competent jurisdiction in a final and non-appealable judgment. 

“2016 Replacement Term Loan Lead Arranger” shall mean Credit Suisse Securities (USA) LLC, in its capacity as a
joint lead arranger and joint bookrunner with respect to the First Amendment and the 2016 Replacement Term Loans. 

“2016 Term Loan Conversion” has the meaning provided in the First Amendment. 

“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution
Authority in respect of any liability of an EEA Financial Institution. 
 “Bail-In Legislation” means, with
respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU
Bail-In Legislation Schedule. 
 “EEA Financial Institution” means (a) any credit institution or
investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of
this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its
parent. 
 “EEA Member Country” means any of the member states of the European Union, Iceland,
Liechtenstein, and Norway. 
 “EEA Resolution Authority” means any public administrative authority or any
person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution. 

  
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 “EU Bail-In Legislation Schedule” means the EU Bail-In
Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time. 

“First Amendment” shall mean the First Amendment to Term Loan Credit Agreement, dated as of October 20,
2016, by and among Holdings, the Borrowers, the Administrative Agent and the 2016 Replacement Lenders (as defined therein). 

“First Amendment Effective Date” has the meaning provided in the First Amendment. 

“New 2016 Replacement Lender” has the meaning provided in the First Amendment. 

“Original Replaced Term Loans” has the meaning provided in the First Amendment. 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and
conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule. 

(vii) Section 2.01 of the Credit Agreement is hereby amended by (i) inserting the text “(a)” prior
to the word “Subject” appearing in said Section and (ii) inserting the following clause (b) at the end of said Section: 

“(b) On the First Amendment Effective Date, (i) each New 2016 Replacement Lender severally agrees to make to the
Borrowers a 2016 Replacement Term Loan denominated in Dollars in a principal amount equal to such Lender’s 2016 Replacement Term Loan Commitment and (ii) each 2016 Converting Lender agrees that, without any further action by any party to
this Agreement, a portion of such 2016 Converting Lender’s Original Replaced Term Loans equal to such 2016 Converting Lender’s 2016 Replacement Term Loan Conversion Amount shall automatically be converted into a 2016 Replacement Term Loan
to the Borrowers in Dollars and in a like principal amount, in each case in accordance with the terms and conditions of the First Amendment.” 

(viii) Section 2.09 of the Credit Agreement is hereby amended by amending and restating the text of said Section as
follows: 
 “The Commitment of each Lender as in effect on the Closing Date shall automatically terminate in its entirety on the
Closing Date (after giving effect to the incurrence of Term Loans on such date). The 2016 Replacement Term Loan Commitment of each New 2016 Replacement Lender shall automatically terminate in its entirety on the First Amendment Effective Date (after
giving effect to the incurrence of the New 2016 Replacement Term Loans on such date).” 

  
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 (ix) Section 2.10(a) of the Credit Agreement is hereby amended by
inserting the text “, as in effect and outstanding on the First Amendment Effective Date” immediately after the text “0.25% of the original principal amount of the Term Loans”. 

(x) Section 2.12(c) of the Credit Agreement is hereby amended by deleting each reference to “Closing
Date” appearing therein and inserting the text “First Amendment Effective Date” in lieu thereof. 
 (xi)
Section 5.11 of the Credit Agreement is hereby amended by inserting the following sentence immediately after the first sentence appearing therein: 

“All proceeds of the 2016 Replacement Term Loans incurred on the First Amendment Effective Date shall be used to repay and/or replace all
Term Loans outstanding immediately prior to the First Amendment Effective Date (but after giving effect to any voluntary prepayment of Term loans occurring on such date).” 

(xii) Article 9 of the Credit Agreement is hereby amended by inserting the following new Section 9.23 at the
end of such Article as follows: 
 “Section 9.23 Acknowledgment and Consent to Bail-In of EEA Financial Institutions.
Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan
Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by: 

 

	 	(a)	the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

  

	 	(b)	the effects of any Bail-in Action on any such liability, including, if applicable: 

  

	 	i.	a reduction in full or in part or cancellation of any such liability; 

  

	 	ii.	a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise
conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or 

  
 8 

	 	iii.	the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.” 

(c) Each Borrower hereby consents, for purposes of Section 9.05(b)(i)(A) of the Credit Agreement, to the assignment on or within
30 days of the First Amendment Effective Date of any 2016 Replacement Term Loans by any New 2016 Replacement Lender to (i) any Person that was an Existing Lender on the First Amendment Effective Date (immediately prior to giving effect thereto)
or (ii) any Eligible Assignee separately identified, and acceptable, to the Borrower Agent. 
 SECTION 2. Conditions of
Effectiveness of this First Amendment. This First Amendment shall become effective on the date when the following conditions shall have been satisfied (such date, the “First Amendment Effective Date”): 

(a) Holdings, the Borrowers, the Administrative Agent, the 2016 Replacement Lenders and Lenders constituting the Required
Lenders shall have signed a counterpart hereof (whether the same or different counterparts) and shall have delivered the same to LendAmend LLC online via www.LendAmend.com or via e-mail to PartyCityOct16@lendamend.com; 

(b) the Borrowers shall have paid (or shall pay substantially concurrently with the effectiveness of this First Amendment), by
wire transfer of immediately available funds, (i) to the 2016 Replacement Term Loan Lead Arranger, all fees as have been separately agreed and (ii) to the Administrative Agent, for the ratable account of each Existing Lender, all accrued
but unpaid interest on the Original Replaced Term Loans through the First Amendment Effective Date; 
 (c) on or prior to the
First Amendment Effective Date, the Borrowers shall have made a voluntary prepayment of Term Loans, pursuant to Section 2.11(a) of the Credit Agreement, in a principal amount of $100,000,000; 

(d) on the First Amendment Effective Date and after giving effect to this First Amendment, no Default under Sections
7.01(a), 7.01(f) or 7.01(g) of the Credit Agreement or Event of Default shall have occurred and be continuing and the Administrative Agent shall have received from the Borrowers a certificate executed by a Responsible Officer of
the Borrower Agent, certifying the foregoing; 
 (e) the Administrative Agent shall have received the Acknowledgment and
Confirmation, substantially in the form of Exhibit B hereto, executed and delivered by a Responsible Officer of each of the Borrowers and each other Loan Party; 

(f) there shall have been delivered to the Administrative Agent (A) a certificate, dated as of the First Amendment
Effective Date, executed by a Responsible Officer (which shall be deemed for this purpose to include any Secretary or any 

  
 9 

 
Assistant Secretary) of Holdings and each of the Borrowers certifying (i) that no amendments or modifications have been made to the Organizational Documents of Holdings and each of the
Borrowers since the same were delivered to the Administrative Agent prior to the First Amendment Effective Date, (ii) that attached thereto are true and correct copies of resolutions of the board of directors of Holdings and the Borrowers
approving and authorizing the execution, delivery and performance of this First Amendment and the performance of the Credit Agreement (as amended by this First Amendment) and the Form of Acknowledgement and Confirmation attached as Exhibit B
hereto, as applicable, and that such resolutions are in full force and effect without modification or amendment and (iii) as to the incumbency and specimen signature of each officer or authorized person executing this First Amendment or any
other document delivered in connection herewith on behalf of Holdings and each of the Borrowers (together with a certificate of another officer or authorized person as to the incumbency and specimen signature of the officer or authorized person
executing the certificate in this clause (iii), and (B) good standing certificates for Holdings and the Borrowers from the jurisdiction in which they are organized; 

(g) the Administrative Agent shall have received from the Borrower Agent a solvency certificate from the chief financial
officer of the Borrower Agent (after giving effect to the incurrence of the 2016 Replacement Term Loans on the First Amendment Effective Date and the application of the proceeds thereof) substantially in the form of Exhibit H to the Credit
Agreement; 
 (h) the Administrative Agent shall have received an opinion from Ropes & Gray LLP, special New York
counsel to the Loan Parties, addressed to the Administrative Agent, the Collateral Agent, the 2016 Replacement Term Loan Lead Arranger and the Lenders; and 

(i) the Administrative Agent shall have received a “Life of Loan” Federal Emergency Management Agency Standard Flood
Hazard Determination with respect to the Mortgaged Properties (together with a notice about special flood hazard area status and flood disaster assistance, duly executed by the Borrower or the applicable Subsidiary (if required), and evidence of
flood insurance, in the event any such Mortgaged Properties or portion thereof is located in a special flood hazard area). 
 SECTION 3.
Mortgaged Property. Within 90 days after the First Amendment Effective Date (or such later date as the Administrative Agent may agree in its sole discretion), the Administrative Agent shall have received: 

(a) a fully executed counterpart of an amendment to the existing Mortgage (the “Mortgage Amendment”; together
with the existing Mortgage, the “Amended Mortgage”), duly executed by the applicable Subsidiary, together with evidence that such counterpart has been delivered to the title insurance company insuring the Amended Mortgage for
recording; 
 (b) a date down endorsement in connection with the existing lender’s title insurance policy insuring the
existing Mortgage, which endorsement shall insure that the Amended Mortgage is a valid and enforceable Lien on the Mortgaged Property, free of any other Liens except Permitted Liens; 

  
 10 

 (c) such affidavits and certificates as shall be required to induce the title
company to issue the endorsement contemplated in subparagraph (b) above and evidence of payment of all applicable title insurance premiums, search and examination charges, mortgage recording taxes, if applicable, and related charges
required for the issuance of such endorsement; and 
 (d) an opinion from local counsel in the state where the Mortgaged
Property is located, in form and substance reasonably satisfactory to the Administrative Agent. 
 SECTION 4. Costs and Expenses.
Each Borrower hereby reconfirms its obligations (a) pursuant to Section 9.03 of the Credit Agreement to pay and reimburse the Administrative Agent in accordance with the terms thereof and (b) to pay and reimburse the 2016
Replacement Term Loan Lead Arranger in accordance with arrangements that have been separately agreed. 
 SECTION 5. Remedies. This
First Amendment shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents. 

SECTION 6. Representations and Warranties. To induce the Administrative Agent and the 2016 Replacement Lenders to enter into this First
Amendment, each of Holdings and the Borrowers represents and warrants to the Administrative Agent and the 2016 Replacement Lenders on and as of the First Amendment Effective Date that, in each case: 

(a) this First Amendment has been duly authorized, executed and delivered by it and each of this First Amendment and the Credit Agreement (as
amended by this First Amendment) constitute its legal, valid and binding obligation, enforceable against it in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, fraudulent transfer, reorganization,
moratorium or similar laws of general applicability relating to or limiting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law and (ii) the need for
filings and registrations necessary to create or perfect the Liens on Collateral granted by the Loan Parties in favor of the Collateral Agent; 

(b) all representations and warranties contained in the Credit Agreement and in the other Loan Documents are true and correct in all material
respects with the same effect as though such representations and warranties had been made on the First Amendment Effective Date (it being understood and agreed that any representation or warranty which by its terms is made as of a specified date
shall be required to be true and correct in all material respects only as of such specified date); and 
 (c) the 2016 Replacement Term
Loans have been incurred in compliance with the requirements of Section 9.02(c) of the Credit Agreement. 
 SECTION 7.
Intercreditor Acknowledgement. In accordance with Section 3.4(c)(i) of the Intercreditor Agreement, the 2016 Replacement Lenders hereby notify the ABL 

  
 11 

 
Facility Security Agent and the ABL Facility Secured Parties (each as defined in the Intercreditor Agreement) that the Original Replaced Term Loans shall be Refinanced (as defined in the
Intercreditor Agreement) pursuant to this First Amendment and the Credit Agreement (as modified hereby), and hereby (i) acknowledge and agree to the terms of the Intercreditor Agreement and (ii) agree to be bound by all terms and
conditions of the Intercreditor Agreement as a “Term Loan Secured Party”. The 2016 Replacement Lenders hereby authorize the Administrative Agent to provide on its behalf any notice to the ABL Facility Security Agent and the ABL
Facility Secured Parties (each as defined in the Intercreditor Agreement) as it may deem necessary or advisable (in its sole discretion) to ensure compliance with Section 3.4(c)(i) of the Intercreditor Agreement. 

SECTION 8. Reference to and Effect on the Credit Agreement and the Loan Documents. 

(a) On and after the First Amendment Effective Date, (i) each reference in the Credit Agreement to “this Agreement,”
“hereunder,” “hereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement, as amended by this First Amendment; (ii) the 2016 Replacement Term Loans shall constitute
“Term Loans” for all purposes under the Credit Agreement (other than for purposes of Recital A to the Credit Agreement, Section 2.01(a) of the Credit Agreement (as amended by this First Amendment), the first sentence of
Section 2.09 of the Credit Agreement, Sections 3.13 and 4.01 of the Credit Agreement, the first sentence of Section 5.11 of the Credit Agreement, clause (i) of the definition of Commitment and the
definition of “Transactions”); and (iii) each 2016 Replacement Lender shall constitute a “Lender” as defined in the Credit Agreement. 

(b) The Credit Agreement and each of the other Loan Documents, as specifically amended by this First Amendment, are and shall continue to be
in full force and effect and are hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral described therein do and shall continue to secure the payment of all
Obligations of the Loan Parties under the Loan Documents, in each case, as amended by this First Amendment. 
 (c) The execution, delivery
and effectiveness of this First Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any
provision of any of the Loan Documents. 
 SECTION 9. Governing Law. THIS FIRST AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

  
 12 

 SECTION 10. Counterparts. This First Amendment may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each of which counterparts when executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. A complete set of
counterparts shall be lodged with the Borrowers and the Administrative Agent. Delivery by facsimile or electronic transmission of an executed counterpart of a signature page to this First Amendment shall be effective as delivery of an original
executed counterpart of this First Amendment. 
 [The remainder of this page is intentionally left blank.] 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have caused their duly authorized officers to execute and
deliver this First Amendment as of the date first above written. 
  

					
	PARTY CITY HOLDINGS INC.
		
	By:	 	 /s/ Michael A. Correale

		 	Name:	 	Michael A. Correale
		 	Title:	 	Vice President
	
	PARTY CITY CORPORATION
		
	By:	 	 /s/ Michael A. Correale

		 	Name:	 	Michael A. Correale
		 	Title:	 	Vice President
	
	PC INTERMEDIATE HOLDINGS, INC.
		
	By:	 	 /s/ James M. Harrison

		 	Name:	 	James. M. Harrison
		 	Title:	 	President

 Signature Page to First Amendment to Party City Term Loan Credit Agreement 

 
					
	DEUTSCHE BANK AG NEW YORK BRANCH, as Administrative Agent
		
	By:	 	 /s/ Peter Cucchiara

		 	Name:	 	Peter Cucchiara
		 	Title:	 	Vice President
		
	By:	 	 /s/ Marcus M. Tarkington

		 	Name:	 	Marcus M. Tarkington
		 	Title:	 	Director

 Signature Page to First Amendment to Party City Term Loan Credit Agreement 

 
					
	CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as a New 2016 Replacement Lender
		
	By:	 	 /s/ Vipul Dhadda

		 	Name:	 	Vipul Dhadda
		 	Title:	 	Authorized Signatory
		
	By:	 	 /s/ Karim Rahimtoola

		 	Name:	 	Karim Rahimtoola
		 	Title:	 	Authorized Signatory

 BY ITS EXECUTION OF THIS SIGNATURE PAGE, THE UNDERSIGNED HEREBY (I) REQUESTS TO CONVERT THE
FULL PRINCIPAL AMOUNT OF ITS ORIGINAL REPLACED TERM LOANS INTO CONVERTED 2016 REPLACEMENT TERM LOANS PURSUANT TO, AND ON THE TERMS AND CONDITIONS SET FORTH IN, THIS FIRST AMENDMENT TO TERM LOAN CREDIT AGREEMENT AND (II) ACKNOWLEDGES AND AGREES
THAT ITS 2016 REPLACEMENT TERM LOAN CONVERSION AMOUNT MAY BE LESS THAN THE FULL PRINCIPAL AMOUNT OF ITS ORIGINAL REPLACED TERM LOANS WHICH IT REQUESTS TO CONVERT HEREUNDER. 

[Lender signature pages on file with the Administrative Agent] 

Signature Page to First Amendment to Party City Term Loan Credit Agreement 

 EXHIBIT A 

NEW 2016 REPLACEMENT TERM LOAN COMMITMENTS 
  

					
	 New 2016 Replacement Lender
	  	2016 Replacement Term Loan Commitment	 
	 Credit Suisse AG, Cayman Islands Branch
	  	$	 125,630,235.44	  

 EXHIBIT B 

FORM OF ACKNOWLEDGMENT AND CONFIRMATION 

1. Reference is made to the First Amendment, dated as of October 19, 2016 (the “First Amendment”), to Term Loan Credit
Agreement, dated as of August 19, 2015 (as amended, amended and restated, supplemented or otherwise modified prior to the date hereof, the “Credit Agreement”), among PARTY CITY HOLDINGS INC., a Delaware corporation (the
“Borrower Agent”), PARTY CITY CORPORATION, a Delaware corporation (the “Subsidiary Borrower” and, together with the Borrower Agent, the “Borrowers”), PC INTERMEDIATE HOLDINGS, INC., a Delaware
corporation (“Holdings”), DEUTSCHE BANK AG NEW YORK BRANCH (“DBNY”), as administrative agent (in such capacity, the “Administrative Agent”) and each 2016 Replacement Lender party thereto.
Capitalized terms used herein but not otherwise defined shall have the meanings set forth in the Credit Agreement or First Amendment, as applicable. 

2. Certain provisions of the Credit Agreement are being amended and/or modified pursuant to the First Amendment. Each of the parties hereto
hereby agrees that, with respect to each Loan Document to which it is a party, after giving effect to the First Amendment: 

(a) all of its obligations, liabilities and indebtedness under such Loan Document, including guarantee obligations, shall
remain in full force and effect on a continuous basis (including, without limitation, with respect to 2016 Replacement Term Loans); and 

(b) all of the Liens and security interests created and arising under such Loan Document remain in full force and effect on a
continuous basis, and the perfected status and priority as described in Section 3.16 of the Credit Agreement of each such Lien and security interest continues in full force and effect on a continuous basis, unimpaired, uninterrupted and
undischarged as collateral security for the Secured Obligations (including, without limitation, the 2016 Replacement Term Loans), to the extent provided in such Loan Documents. 

3. THIS ACKNOWLEDGMENT AND CONFIRMATION SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK. 

4. This Acknowledgment and Confirmation may be executed by one or more of the parties hereto on any number of separate counterparts (including
by telecopy or other electronic transmission), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 

[rest of page intentionally left blank] 

 IN WITNESS WHEREOF, the parties hereto have caused this Acknowledgment and Confirmation to be
duly executed and delivered by their proper and duly authorized officers as of the day and year first above written. 
  

			
	PC INTERMEDIATE HOLDINGS, INC.
		
	By:	 	  

	Name:
	Title:

  

			
	 PARTY CITY HOLDINGS INC.

PARTY CITY CORPORATION
 ANAGRAM INTERNATIONAL,
INC.
 ANAGRAM INTERNATIONAL HOLDINGS, INC.

AM-SOURCE, LLC
 AMSCAN INC.

TRISAR, INC.

			
		
	By:	 	  

	Name:
	Title:

  

			
	ANAGRAM EDEN PRAIRIE PROPERTY HOLDINGS LLC
	
	By: PARTY CITY HOLDINGS, INC., its sole member
		
	 By:
	 	  

	 Name:

	 Title:

  

			
	 AMSCAN PURPLE SAGE, LLC

AMSCAN NM LAND, LLC

	
	By: AMSCAN INC., its sole manager
		
	By:	 	  

	Name:
	Title:

 Signature Page to Acknowledgment and Confirmation of Party City Term Loan First Amendment

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