Document:

exv10w19

EXECUTION COPY

Exhibit 10.19

ADMINISTRATIVE AND OPERATIONAL SERVICES AGREEMENT

BY AND AMONG

OXFORD RESOURCE PARTNERS, LP,

OXFORD MINING COMPANY, LLC,

AND

OXFORD RESOURCES GP, LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I

	DEFINITIONS; CONSTRUCTION

	 
	 	 	 	 
	SECTION 1.1 Definitions
	 	 	1	 
	SECTION 1.2 Construction
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II

	SCOPE OF SERVICES

	 
	 	 	 	 
	SECTION 2.1 Provision of Services
	 	 	2	 
	SECTION 2.2 Change of Services
	 	 	2	 
	SECTION 2.3 Nonexclusive
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III

	REIMBURSEMENT

	 
	 	 	 	 
	SECTION 3.1 Expense Reimbursement
	 	 	3	 
	SECTION 3.2 Special Services
	 	 	3	 
	SECTION 3.3 U.S. Currency
	 	 	3	 
	 
	 	 	 	 
	ARTICLE IV

	TERMS OF PAYMENT AND ACCOUNTING

	 
	 	 	 	 
	SECTION 4.1 Calculation and Submission Of Charges
	 	 	3	 
	 
	 	 	 	 
	ARTICLE V

	BOOKS AND RECORDS; REPORTS

	 
	 	 	 	 
	SECTION 5.1 Books and Records
	 	 	3	 
	SECTION 5.2 Reports
	 	 	3	 
	 
	 	 	 	 
	ARTICLE VI

	MISCELLANEOUS

	 
	 	 	 	 
	SECTION 6.1 Termination
	 	 	4	 
	SECTION 6.2 No Fiduciary Duties
	 	 	4	 
	SECTION 6.3 No Representations or Warranties
	 	 	4	 
	SECTION 6.4 Force Majeure
	 	 	4	 
	SECTION 6.5 Waiver
	 	 	4	 
	SECTION 6.6 Further Assurances
	 	 	4	 
	SECTION 6.7 Notices
	 	 	4	 
	SECTION 6.8 Counterparts
	 	 	5	 
	SECTION 6.9 Applicable Law
	 	 	5	 
	SECTION 6.10 Binding Effect; Assignment
	 	 	5	 
	SECTION 6.11 Severability
	 	 	5	 
	SECTION 6.12 Modification; Amendment
	 	 	5	 
	SECTION 6.13 Entire Agreement; Supersedure
	 	 	6	 

i

 

ADMINISTRATIVE AND OPERATIONAL SERVICES AGREEMENT

     This ADMINISTRATIVE AND OPERATIONAL SERVICES AGREEMENT (this “Agreement”) is entered
into as of August 24, 2007 (the “Effective Date”) by and among Oxford Resource Partners,
LP, a Delaware limited partnership (the “Partnership”), Oxford Mining Company, LLC, an Ohio
limited liability company and a wholly owned subsidiary of the Partnership (“Oxford
Operating”), and Oxford Resources GP, LLC, a Delaware limited liability company and the general
partner of the Partnership (the “GP”).

R E C I T A L S

     WHEREAS, the Parties hereto desire, by their execution of this Agreement, to evidence the
terms and conditions upon which the GP will provide certain services to the Partnership Entities.

A G R E E M E N T S

     NOW, THEREFORE, in consideration of the premises and the covenants, conditions, and agreements
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS; CONSTRUCTION

     SECTION 1.1 Definitions. Unless otherwise clearly indicated to the contrary, the
definitions listed on Exhibit A shall be for all purposes applied to the terms used in this
Agreement.

     SECTION 1.2 Construction. The following provisions shall be applied wherever
appropriate in this Agreement:

     (a) “herein,” “hereby,” “hereunder,” “hereof,” “hereto” and other equivalent words
shall refer to this Agreement as an entirety and not solely to the particular portion of
this Agreement in which any such word is used;

     (b) “including” means “including without limitation” and is a term of illustration and
not of limitation;

     (c) all definitions set forth herein shall be deemed applicable whether the words
defined are used herein in the singular or the plural;

     (d) references herein to other documents and agreements shall mean such documents and
agreements as amended and restated from time to time;

     (e) wherever used herein, any pronoun or pronouns shall be deemed to include both the
singular and plural and to cover all genders;

 

 

          (f) this Agreement shall not be construed against any person as the principal
draftsperson hereof;

          (g) the section headings appearing in this Agreement are inserted only as a matter of
convenience and in no way define, limit, construe or describe the scope or extent of the
Sections, or in any way affect this Agreement; and

          (h) any references herein to a particular Section, Article, Exhibit or Schedule means a
Section or Article of, or an Exhibit or Schedule to, this Agreement unless another agreement
is specified.

ARTICLE II

SCOPE OF SERVICES

     SECTION 2.1 Provision of Services.

          (a) Beginning on the Effective Date the GP shall provide the Partnership Entities with
such services (the “Services”) as the GP determines may be reasonable and necessary
to operate the Business, including, without limitation, those Services set forth in
Exhibit B, during the term of this Agreement and for such additional periods as the
Parties may agree.

          (b) The Services shall be provided from time to time at such times and pursuant to such
instructions and specifications as the Partnership Entities shall provide.

     SECTION 2.2 Change of Services.

          (a) The Partnership Entities shall have the right at any time during the term of this
Agreement to request any changes in the Services.

          (b) Any change in the Services shall be authorized in writing and evidenced by an
amendment to Exhibit B, which amendment shall be signed by the Parties. Unless
otherwise agreed in writing, the provisions of this Agreement shall apply to all changes in
the Services.

     SECTION 2.3 Nonexclusive.

          (a) The GP may provide the Services to any person from time to time.

          (b) The Partnership Entities shall not be obliged to acquire services exclusively from
the GP but shall remain free to acquire services from any other sources which the
Partnership Entities feel are appropriate.

          (c) Performance of Services by Affiliates and Third Parties. The Parties
hereby agree that in discharging its obligations hereunder, the GP may engage any of its
Affiliates or any qualified third party to perform the Services (or any part of the
Services) on its behalf and that the performance of the Services (or any part of the
Services) by any such Affiliate or third party shall be treated as if the GP performed such
Services itself.

2

 

Notwithstanding the foregoing, nothing contained herein shall relieve the GP of its
obligations hereunder.

          (d) Appointment of Independent Accounting Firm. Notwithstanding anything to
the contrary in this Agreement, the Parties hereby acknowledge and agree that the GP shall
have the exclusive authority to appoint an independent registered public accounting firm to
audit the financial statements of the Partnership Entities.

ARTICLE III

REIMBURSEMENT

     SECTION 3.1 Expense Reimbursement. The Partnership Entities agree to reimburse the GP
for all direct and indirect expenses it incurs or payments it makes on behalf of the Partnership
Entities hereunder.

     SECTION 3.2 Special Services. The Partnership Entities may from time to time request
the GP to provide special additional Services. The Partnership Entities shall pay the GP’s costs
and expenses incurred in the provision of such special Services in the manner and at the time
specified in Section 4.1.

     SECTION 3.3 U.S. Currency. All amounts payable under this Agreement are expressed,
and shall be paid, in United States dollars.

ARTICLE IV

TERMS OF PAYMENT AND ACCOUNTING

     SECTION 4.1 Calculation and Submission Of Charges. The GP shall submit charges to the
Partnership Entities at the end of each month calculated on the basis of actual cost of the
Services provided hereunder, accompanied by such supporting documentation as agreed upon from time
to time by the Parties hereto. Charges shall be adjusted if necessary following the completion of
each year of this Agreement based on actual annual costs for the Services provided hereunder.

ARTICLE V

BOOKS AND RECORDS; REPORTS

     SECTION 5.1 Books and Records. The GP shall maintain accurate books and records
regarding the performance of the Services and its calculation of the costs of such Services and
shall retain such books and records for the period required by applicable accounting practices and
by applicable law.

     SECTION 5.2 Reports. The GP shall prepare and deliver to the Partnership Entities any
reports provided for in this Agreement and such other reports as the Partnership Entities may
reasonably request from time to time regarding the performance of the Services.

3

 

ARTICLE VI

MISCELLANEOUS

     SECTION 6.1 Termination. Any Party may terminate this Agreement by providing written
notice to the other Parties of its intention to terminate the Agreement, which notice must be
provided at least 30 days prior to such termination.

     SECTION 6.2 No Fiduciary Duties. No Party shall have any fiduciary obligations or
duties to any other Party by reason of this Agreement.

     SECTION 6.3 No Representations or Warranties. The Services to be provided hereunder
shall be provided on the basis that the GP does not make any warranties or representations, express
or implied, with respect to such Services save and except that such Services shall be provided by
qualified personnel in a professional and timely manner.

     SECTION 6.4 Force Majeure. A Party’s obligation under this Agreement shall be excused
when and to the extent its performance of that obligation is prevented by reason of Force Majeure;
provided, however, that a Party shall not be excused by Force Majeure from any obligation to pay
money. A Party that is prevented from performing its obligations under this Agreement by reason of
Force Majeure shall promptly notify the other Parties of that fact and shall exercise due diligence
to end its inability to perform as promptly as practicable. Notwithstanding the foregoing, a Party
is not required to settle any strike, lockout or other labor dispute in which it may be involved.

     SECTION 6.5 Waiver. No failure by any Party to insist upon the strict performance of
any covenant, duty, agreement or condition of this Agreement or to exercise any right or remedy
consequent upon a breach of this Agreement shall constitute waiver of any such breach of any other
covenant, duty, agreement or condition.

     SECTION 6.6 Further Assurances. Each Party shall from time to time, and at all times,
do such further acts and execute and deliver all such further deeds and documents as shall be
reasonably requested by another Party in order to fully perform and carry out the terms of this
Agreement.

     SECTION 6.7 Notices. Any notice, request, demand, direction or other communication
required or permitted to be given or made under this Agreement to a Party shall be in writing and
may be given by hand delivery, postage prepaid first-class mail delivery, or delivery by a
reputable international courier service guaranteeing next business day delivery to such Party at
its address noted below:

	 	(a)	 	in the case of the GP, to:

Oxford Resources GP, LLC

544 Chestnut Street

Coshocton, Ohio

Attention: Chairman of the Board

4

 

	 	 	 	 	 

	 

	 	with a copy to:
	 	AIM Infrastructure MLP Fund, L.P.
	 

	 	 	 	950 Tower Lane
	 

	 	 	 	Suite 800
	 

	 	 	 	Foster City, CA 94404
	 

	 	 	 	Attention: Matthew P. Carbone & Brian Barlow

	 	(b)	 	in the case of any of the Partnership Entities:

c/o Oxford Resource Partners, LP

544 Chestnut Street

Coshocton, Ohio

Attention: General Partner

or at such other address of which notice may have been given by such Party in accordance with the
provisions of this Section 6.7.

     SECTION 6.8 Counterparts. This Agreement may be executed in several counterparts, no
one of which needs to be executed by all of the Parties. Each such counterpart, including a
facsimile transmission of this Agreement, shall be deemed to be an original and shall have the same
force and effect as an original. All counterparts together shall constitute but one and the same
instrument.

     SECTION 6.9 Applicable Law. In the provision of the Services hereunder the Parties
shall comply with and observe all applicable laws, regulations and orders of any proper authority
having jurisdiction over the Services provided. This Agreement shall be construed in accordance
with and governed by the laws of the State of Delaware, without regard to the principles of
conflicts of law.

     SECTION 6.10 Binding Effect; Assignment.

     (a) This Agreement will inure to the benefit of and be binding upon the Parties and
their respective successors and permitted assigns.

     (b) This Agreement may not be assigned by any Party without the prior written consent
of the other Parties.

     SECTION 6.11 Severability. If any provision of this Agreement or the application
thereof to any Party or circumstance shall be held invalid or unenforceable to any extent, the
remainder of this Agreement and the application of such provision to other Parties or circumstances
shall not be affected thereby and shall be enforced to the greatest extent permitted by law.

     SECTION 6.12 Modification; Amendment. This Agreement may not be modified or amended
except by an instrument in writing signed by each of the Parties or by their respective successors
or permitted assigns.

5

 

     SECTION 6.13 Entire Agreement; Supersedure. This Agreement constitutes the entire
agreement of the Parties relating to the matters contained herein and supersedes all prior
contracts or agreements, whether oral or written, relating to the matters contained herein.

[Signature Page Follows]

6

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 	 	 

	 	 	OXFORD
RESOURCE PARTNERS, LP	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Oxford Resources GP, LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Matthew P. Carbone
 

Name: Matthew P. Carbone
	 	 
	 

	 	 	 	Title: Authorized Person	 	 
	 
	 	 	 	 	 	 
	 	 	OXFORD MINING COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Oxford Resource Partners LP,

its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	Oxford Resources GP, LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Matthew P. Carbone
 

Name: Matthew P. Carbone
	 	 
	 

	 	 	 	Title: Authorized Person	 	 
	 
	 	 	 	 	 	 
	 	 	OXFORD RESOURCES GP, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Matthew P. Carbone
 

Name: Matthew P. Carbone
	 	 
	 

	 	 	 	Title: Authorized Person	 	 

[Signature Page to Administrative and Operational Services Agreement]

 

 

EXHIBIT A

DEFINED TERMS

     “Affiliate” means, with respect to any Person, any other Person that directly or indirectly
through one or more intermediaries controls, is controlled by or is under common control with, the
Person in question. As used in this definition, the term “control” means the possession, direct or
indirect, of the power to direct or cause the direction of the management and policies of a Person,
whether through ownership of voting securities, by contract or otherwise.

     “Agreement” has the meaning set forth in the introductory paragraph of this Agreement.

     “Business” means the business of the Partnership Entities.

     “Damages” has the meaning set forth in Section 6.1.

     “Effective Date” has the meaning set forth in the introductory paragraph of this Agreement.

     “Force Majeure” means any cause or event which is beyond the reasonable control of a Party,
including the following causes and events (unless such causes or events are within such Party’s
reasonable control):

	 	(a)	 	an act of God;
	 
	 	(b)	 	a strike, lockout, labor difficulty or other industrial disturbance;
	 
	 	(c)	 	an act of a public enemy, war, blockade, insurrection or public riot;
	 
	 	(d)	 	lightning, fire, storm, flood or explosion;
	 
	 	(e)	 	governmental action, delay, restraint or inaction;
	 
	 	(f)	 	judicial order or injunction; or
	 
	 	(g)	 	material shortage or unavailability of equipment.

     “GP” has the meaning set forth in the introductory paragraph of this Agreement.

     “GP Party” has the meaning set forth in Section 6.1.

     “Oxford Operating” has the meaning set forth in the introductory paragraph of this Agreement.

     “Partnership” has the meaning set forth in the introductory paragraph of this Agreement.

A-1

 

     “Partnership Entities” means the Partnership and Oxford Operating and any Affiliate controlled
(and only so long as such Affiliates are controlled) by the Partnership or Oxford Operating (as the
term “control” is used in the definition of “Affiliate”).

     “Party” means any one of the Persons that executes this Agreement.

     “Person” means an individual or a corporation, firm, limited liability company, partnership,
joint venture, trust, unincorporated organization, association, government agency or political
subdivision thereof or other entity.

     “Services” has the meaning set forth in Section 2.1(a).

A-2

 

EXHIBIT B

SERVICES PROVIDED TO THE PARTNERSHIP ENTITIES

The GP shall provide the Partnership Entities with certain services, including:

	 	(a)	 	general administrative and management services;
	 
	 	(b)	 	human resources;
	 
	 	(c)	 	information technology;
	 
	 	(d)	 	finance and accounting;
	 
	 	(e)	 	corporate development;
	 
	 	(f)	 	real property;
	 
	 	(g)	 	marketing;
	 
	 	(h)	 	engineering;
	 
	 	(i)	 	operations (including mining operations);
	 
	 	(j)	 	geological services;
	 
	 	(k)	 	risk management;
	 
	 	(l)	 	insurance services;
	 
	 	(m)	 	tax and audit; and
	 
	 	(n)	 	investor relations.

B-1exhibit10-1.htm

    EXHIBIT
10.1

    

    AGREEMENT (“Agreement”)
entered into the 14th day
of April, 2010, by and among EMERGING VISION INC. (“EVI”),
a New York corporation having an address at 520 Eighth Avenue - 23rd
Floor, New York, New York 11530; INSIGHT IPA OF NEW YORK, INC.
(“Insight IPA”), and INSIGHT
MANAGED VISION CARE (“Insight Vision Care” and, together with Insight
IPA, (“Insight”), each having an address at 520 Eighth Avenue - 23rd
Floor, New York 11530; and VISION WORLD, LLC (“Vision
World”) a Delaware limited liability company having an address at 520 Eighth
Avenue - 9th Floor, New York, New York 10018.  For purposes of this
Agreement, whenever the term “Party” is used herein, and unless otherwise
indicated, EVI and Insight will be deemed to be a single Party and Vision World
will be deemed to be a single Party.

    

    W I T N E S S E T H:

    

    WHEREAS, EVI owns and operates
and grants franchises to third parties to own and operate retail optical stores
doing business under the names Sterling Optical, Site For Sore Eyes and various
other authorized names; and

    

    WHEREAS, Insight IPA is a
wholly owned subsidiary of EVI, and Insight Vision Care is a division of EVI;
and

    

    WHEREAS, Insight IPA and
Insight Vision Care were each established (i) to enter into provider agreements
with franchisees and operators of EVI stores; and (ii) to enter into contracts
with third party organizations pursuant to which the providers would provide
specified eye care services to members of such organization; and

    

    WHEREAS, Vision World is in
the business of soliciting and administrating third party eye care benefit
programs with third party organizations, pursuant to which members of such third
party organizations may obtain certain eye care services with authorized Vision
World professional eye care providers (the “Managed Care Plans”);
and

    

    WHEREAS, Vision World and EVI
have agreed that Vision World will serve as a third party administrator for
providers who have entered into agreements (“Provider Agreements”) with Insight
(“Insight Providers”) and will allow certain EVI franchisees and other EVI store
operators to participate and serve as providers for Vision World;

    

    NOW, THEREFORE, for the
consideration herein stated, the parties agree as follows:

    

    1. Services to be Provided by
Insight.

    

    (a) Insight will, promptly upon
execution of this Agreement, provide to Vision World copies of all Provider
Agreements it maintains with its franchisees and other operators of EVI
Stores.

    

    (b) Insight, promptly upon execution of
this Agreement, will also provide to Vision World copies of all managed care
agreements which are currently in effect for Insight Providers.

    

    (c) Except as otherwise described
herein, Insight may continue to enter into Provider Agreements with its
franchisees and operators of EVI Stores, and it will deliver copies of such
agreements to Vision World , promptly after signing.

    

    (d) Except as otherwise provided
herein, EVI and/Insight will have the right to continue to enter into Managed
Care Agreements, and upon execution, they will deliver copies thereof to Vision
World to be administered in accordance with this Agreement.

    

    

    2. Services to be Provided by Vision
World

    

    (a)           Vision
World will, to the extent that Insight has agreed with third party organizations
to administer Managed Care Plans (i.e., to process and forward claims from
Providers for payment, respond to eligibility determinations and receive and
distribute payments), perform such functions on behalf of Insight and, subject
to the terms of this Agreement, will collect and distribute payments, as and
when same are received, to Insight Providers. Vision World will be obligated to
perform such services in a diligent and timely manner.

    

    (b)           Vision
World will be responsible for the credentialing of all Insight
Providers.

    

    (c)           Vision
World will, during its normal business hours, provide through its service
department, support for Insight Providers to seek to resolve any issues,
including requirements of applicable managed care plans and claim status, and
will utilize the telephone number provided by Insight or such other number as
the parties may agree.  Upon termination of this Agreement, for any
reason, Insight will retain all rights to the telephone number.

    

    3.   Vision World Provider
Agreements.

    

    
      	
               
      

            	
              (a)

            	
              Vision
      World will offer to all EVI franchisees and any other eligible operators
      of

            

    

    Sterling
Optical Centers, located in the areas in which Vision World shall then be
operating (hereinafter the “Vision World Territory”) which Vision World
Territory is currently the Northeast portion of the United
States,  the right to become Vision World Providers, in accordance
with the terms and conditions of the current Vision World Provider Agreements, a
copy of which is annexed hereto, as Exhibit “A”; except that no initial fee will
be due to Vision World as a condition for becoming a Vision World
Provider.

    

    (b)   From and after the
commencement date of this Agreement (and subject to the disclosure of this
Agreement in any applicable Franchise Disclosure Document), and during the term
of this Agreement, and any Renewal Term, as hereinafter defined, neither EVI nor
Insight, nor any affiliate thereof, will, directly or indirectly, offer to its
franchisees or other EVI store operators,  in the Vision World
Territory, through Provider Agreements or otherwise, the right to participate
in, or provide services pursuant to managed care contracts, other than those
procured through Vision World.  With respect to existing Insight
Providers, within the Vision World Territory, EVI agrees that it will promptly
provide notice of non renewal to such providers, in accordance with the terms of
each such Insight Provider Agreement. To the extent that during the term of this
Agreement, or any renewal thereof, the Vision World Territory shall expand, then
EVI agrees that it will, upon not less than six (6) months prior written notice
from Vision World, cease offering Insight Provider Agreements within such
expanded territories and will provide notice of non renewal to any Insight
Providers within such expanded territory, in accordance with the terms of each
such Insight Provider Agreement, and Insight will thereafter be obligated to
offer Vision World Provider Agreements in accordance with the provisions of
Section 3(a) above.

    

    (c)  Nothing herein prohibits
EVI, Insight or any affiliate from continuing to enter into Provider Agreements
with Franchisees of EVI outside of the Vision World Territory, or from entering
into Managed Care Agreements, for services to be provided by Insight Providers
outside of the Vision World Territory.

    

    4. Payments to Vision World and
EVI.

    

    
      	
               
      

            	
              (a)

            	
              Insight Provider
      Agreements: Vision World will continue to administer
      the

            

    

    existing
Insight Provider Agreements for Insight Providers within the existing Vision
World Territory, until their termination or non renewal, and will, at all times,
during the term of this Agreement and any Renewal Term, administer the Insight
Provider Agreements and any claims submitted thereunder by Insight Providers
outside of the Vision World Territory. For the services provided in
administering these claims, Vision World will be entitled to receive a
processing fee, which for the first year will be equal to $4.60 per claim
submitted and collected by Vision World pursuant to Managed Care Plans (the
“Insight Administration Fee”). Vision World will deduct and retain the Insight
Administration Fee from any and all payments received from the Managed Care
Plans, on behalf of Insight Providers and thereafter Vision World will remit the
balance of the payment directly to the Insight Provider, together with the
corresponding Explanation of Benefits (“EOB”).  Vision World will have
the right, not more than once each year, to increase the Insight Administration
Fee, provided the amount of the increase may not exceed five (5%) percent, in
any one year.

    

    (b)           Vision World Provider
Agreements: In accordance with its standard Vision World Provider
Agreements, for each claim submitted and collected on behalf of EVI franchisees
or other EVI store operators who shall be serving as Vision World Providers,
pursuant to the terms hereof, Vision World will be entitled to receive an
administration fee (the “Vision World Administration Fee”) equal to twenty-five
(25%) percent of the amount collected. Vision World will deduct the Vision World
Administration Fee from the amounts collected, and will thereafter remit the
balance of the payment directly to the EVI franchisees or operators, together
with the corresponding EOB.

    

    (c)           Franchisee Direct
Billing:                                           If,
any EVI franchisees, who become Vision World Providers pursuant to the terms of
this Agreement, were, on the effective date of this Agreement, submitting claims
under certain of the Managed Care Agreements with Insight, directly to
one  or more third party organizations for processing and payment,
instead of having the claim administered through Insight, then, notwithstanding
anything to the contrary contained in this Agreement or in any Vision World
Provider Agreement, such franchisees, may with respect to those third party
organizations, continue to submit such claims directly, instead of through
Vision World, and Vision World shall not be entitled to any Vision World
Administration Fee on account thereof.  In the event any franchisee
described in the first sentence of this Section 4(c) subsequently becomes the
franchisee of one or more additional Sterling Optical Centers, said franchisee
shall continue to have the right to continue to submit the claims described
herein, directly to the third party organization, and not have the claims
administered by Vision World. This provision shall not be applicable to any
franchisees that become franchisees of EVI after the effective date of this
Agreement.

    

    (d)           Payments to EVI:
Vision World will, on a monthly basis, remit to EVI, an amount equal to twenty
(20%) percent of the total amount of the Vision World Administration Fees (i.e.
5% of the total amount collected as described above in Section 4(b) hereof),
which it collected during the preceding month, for claims processed on behalf of
EVI franchisees and operators (the “EVI Fee”).  The EVI Fee will be
paid to EVI on or before the 15th day
of each and every month, for amounts received by Vision World during the
preceding month, and will be accompanied by statements detailing, by franchisee
and/or operator, the total amounts of claims received by Vision World and the
amounts paid to the EVI franchisee or EVI store operator.

    

    (e)           Late Payments: Any
payments due from Vision World to EVI, which are not paid within thirty (30)
days of the date that they are due will bear interest at the rate of 1.5% per
month, on the overdue amount from the date that it is due until fully
paid.

    

    (e)           Right to
Audit:  Vision World will maintain, at its principal office,
adequate books, records, and accounts of all transactions and correspondence
between Vision World, EVI, Insight Providers and EVI
franchisees.  Such books, accounts, and records will be maintained by
Vision World for the Term of this Agreement and any Renewal Term and for a seven
(7)-year period thereafter or longer as may be required by law.  To
verify the amounts received and paid by Vision World under the terms of this
Agreement, and Vision World’s compliance with the terms hereunder, EVI will have
the right, not more than twice each year, to inspect and audit, or cause to be
inspected and audited, the books and records of Vision World and obtain copies
of such records, at Vision World’s offices, during normal business hours, upon
reasonable prior notice.   If any such inspection or audit
discloses an understatement of the amount payable by Vision World hereunder,
Vision World will pay to EVI, or to such other parties as may entitled to the
payment, within 30 days after receipt of the inspection or audit report, all
amounts due plus any applicable interest due thereon, calculated at the rate set
forth in Section 4(e) above.

    

    5.  Term

    

    This Agreement will commence as of May
1, 2010, and will continue for a period of five (5) years, to and including
April 30, 2015.  Thereafter, this Agreement will be renewed for
successive  terms of five (5) years each (each a “Renewal Term”),
unless either Party, elects to cancel this Agreement, by providing written
notice thereof to the other Party, at least ninety (90) days prior to the
expiration of the then current Term or Renewal Term.

    

    6.   Termination

    

    (a)           Except
as provided in subparagraph (b) below, either Party may terminate this Agreement
by providing the other Party with a minimum of sixty (60) days prior written
notice in the event the other Party commits a material breach of any provision
of this Agreement. Said notice must specify the nature of the material
breach.  The breaching Party will have sixty (60) days from the date
of the breaching Party's receipt of the foregoing notice (the “Cure Period”) to
cure said material breach.  In the event the breaching Party fails to
cure the material breach within the Cure Period, this Agreement will upon
written notice automatically terminate upon expiration of the Cure Period;
provided, however, in the event that the breach cannot, in good
faith,  be cured within said sixty (60) day cure period, but the
breaching Party within the Cure Period commences the cure and thereafter
diligently prosecutes such cure to its completion, then the Cure Period will be
extended for such reasonable period as may be necessary to completely cure the
breach, provided such period shall not exceed sixty (60) days unless otherwise
agreed to by the non-breaching party in its sole discretion.

    

    (b)           Notwithstanding
the provisions of subparagraph (a) above, this Agreement may be terminated
immediately upon prior written notice by the terminating Party in the event (i)
of the insolvency or the filing of any action relating to the bankruptcy or
insolvency of the other Party, which action is not dismissed, withdrawn or
otherwise ceases to be effective within sixty (60) days after the filing
thereof; (ii) dissolution or liquidation of the other Party; or (iii) any loss
of license or other action by any governmental authority which precludes one
Party from carrying out its obligations hereunder, unless such license is
reinstated or such other action is withdrawn within thirty (30) days from its
initial effective date.

    

    (c)           In
the event of a termination under  Sections 5, 6(a) or 6(b) above, the
right to indemnification under Section 9 shall survive for a period of one year
from the date of termination.

    

    (d)           Upon
termination of this Agreement, EVI will be entitled to continue to receive the
fees described in Paragraph 4(d), for amounts received by Vision World on
account of any EVI Franchisee who continues to be a Vision World Provider under
the terms of the Vision World Provider Agreement which is in effect on the date
of termination.

    

    7.           Representations of Vision
World

    

    To induce EVI and Insight to enter into
this Agreement, Vision World represents and warrants to EVI and Insight as
follows:

    

    (a)           Vision
World is a duly organized validly existing limited liability company in good
standing the State of New York.  Vision World has the full power and
authority to execute, deliver and perform and consummate its obligations under
this Agreement. This Agreement has been duly and validly executed and delivered
by Vision World and constitutes the valid, legal and binding obligation of
Vision World, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium and similar laws
affecting creditors’ rights and remedies generally, and subject, as to
enforceability, to general principles of equity, commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity).

    

    (b)           The
execution, delivery and performance of this Agreement will not breach or
conflict with any of the terms, conditions or provisions of any agreement,
instrument or decree to which Vision World is a party or by which Vision World
is bound.

    

    (c)           All
required consents of any third party, if any, to enter into this Agreement
and/or the transactions contemplated hereby, have been obtained.

    

    (d)           There
is no action, suit or proceeding pending or, to the best of the knowledge of
Vision World, threatened against Vision World, at law or in equity, in any court
or before any Federal, state, county or municipal department, bureau,
commission, board or agency or any other governmental instrumentality which
would in adversely affect the ability of Vision World to carry out its
obligations under this Agreement.

    

    (e)           Vision
World will at all times during the Term of this Agreement, and any Renewal Term,
comply with all applicable federal and state statutes, including, but not
limited to, the Health Insurance Portability and Accountability Act (HIPAA) of
1996, as same may be amended, from time to time.

    

    

    8.           Representations of EVI and
Insight

    

    To induce Vision World to enter into
this Agreement, EVI and Insight each represent to Vision World as
follows:

    

     (a)           EVI
and Insight IPA are each duly organized corporations validly existing, and in
good standing, under the laws of the State of New York; each has the full power
and authority to execute, deliver and perform and consummate its obligations
under this Agreement. This Agreement has been duly and validly executed and
delivered by Insight and EVI and constitutes the valid, legal and binding
obligation of each of them, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting creditors’ rights and remedies generally, and subject, as
to enforceability, to general principles of equity, commercial reasonableness,
good faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity)..

    

    (b)           The
execution, delivery and performance of this Agreement will not breach or
conflict with any of the terms, conditions or provisions of any agreement,
instrument or decree to

    which EVI
or Insight is a party or by which either of them is bound.

    

    (c)           All
required consents of any third party, if any, to enter into this Agreement
and/or the transactions contemplated hereby, have been obtained.

    

    (d)           There
is no action, suit or proceeding pending or, to the best of the knowledge of EVI
and Insight, threatened against EVI or Insight, at law or in equity, in any
court or before any Federal, state, county or municipal department, bureau,
commission, board or agency or any other governmental instrumentality which
would in adversely affect the ability of EVI or Insight to carry-out its
obligations under this Agreement.

    

    (e)           EVI
and Insight will, at all times during the Term of this Agreement and any Renewal
Term, comply with all applicable federal and state statutes, including, but not
limited to, the Health Insurance Portability and Accountability Act (HIPAA) of
1996, as same may be amended, from time to time;

    

    
      	
               
      

            	
              9.

            	
              Indemnification

            

    

    

    (a)           Vision
World hereby agrees to indemnify, defend and hold harmless, EVI, Insight and
their respective  officers, directors, and employees, against any
claim, loss, cost, damage, expense or other liability, including, without
limitation, all costs and  reasonable attorney's fees, and liability
to third parties including regulatory authorities arising out of, or in
connection with, a  breach by Vision World of its obligations
hereunder or resulting from the negligent, willful or wanton performance of
services, duties or obligations of Vision World, its officers, directors,
employees, agents, servants, under this Agreement and/or the fraudulent conduct
or embezzlement or any other defalcation, negligence, bad faith, or intentional
misconduct attributable to Vision World or its directors, officers or
employees.

    

    (b)           
EVI and Insight hereby agree to jointly and severally  indemnify,
defend and hold harmless, Vision World, its officers, directors and employees,
against any claim, loss, cost, damage expense or other liability, including
without limitation all costs and attorney's fees and liability to third parties,
including regulatory authorities, arising out of, or in connection with,
a  breach by EVI, Insight or their affiliates of any of their
obligations hereunder or resulting from the negligent, willful or wanton
performance of services, duties or obligations of EVI, Insight, or their
affiliates and/or their respective officers, directors, employees, and agents
under this Agreement and/or the fraudulent conduct or embezzlement or any other
defalcation, negligence, bad faith, or intentional misconduct attributable to
EVI, Insight or their directors, officers or employees.

    

     (c)              An
indemnitee entitled to indemnification under this Section 9 shall give notice to
the indemnitor of a claim or other circumstances likely to give rise to a
request for indemnification, promptly after the indemnitee becomes aware of the
same. If the indemnitor, prior to the expiration of fifteen (15) days after
receipt of notice of a claim by the indemnitee under this Section 9, has not
assumed the defense thereof, the indemnitee may thereupon undertake the defense
thereof on behalf of, and at the risk and expense of, the indemnitor with all
reasonable costs and expenses of such defense to be paid by the indemnitor. No
compromise or settlement of any such claim shall be made without the prior
consent in writing of the indemnitee.

     

    10.              
Notices

    

    (a)              Any
and all notices required to be given pursuant to the terms of this Agreement
must be given in writing, and must be delivered either personally; by certified
United States mail, postage prepaid, return receipt requested; or by Federal
Express or other overnight courier service that obtains a signed receipt upon
delivery, and forwarded to the following addresses or other to such address as
either Party may in writing submit in accordance with this
provision.

    

    If to
Vision World:

    Vision
World, LLC

    520
Eighth Avenue - 9th
Floor

    New York
NY 10018

    Attention:
President

    

    If to EVI
and Insight

    Emerging
Vision, Inc.

    520
Eighth Avenue - 23rd
Floor

    New York
NY 10018

    Attention:
President

    

    (b)              
Notices delivered personally or by overnight courier will be effective on the
first business day following delivery, and notices delivered by United States
Mail will be effective three (3) business days after mailing. Should any Party
refuse to accept delivery, notice will be effective upon such
refusal

    

    

    11.              Governing Law

    

    This Agreement will be governed in all
respects by the laws of the State of New York. The parties hereby agree that any
proceeding brought in connection with, or arising out of, any matter relating to
this agreement, or the relationship created hereby, will be brought in the
courts of the State of New York, County of New York and each of the parties
irrevocably consent to exclusive jurisdiction and venue of such
courts.

    

    
      	
               
      

            	
              12.

            	
              Miscellaneous

            

    

    

    (a)           Entire
Agreement.                                This
Agreement  constitutes the entire agreement of the parties hereto with
respect to the matters stated herein, and may not be amended or modified unless
such amendment or modification shall be in writing and shall have been signed by
the Party against whom enforcement is sought.

    

    (b)           Execution in
Counterparts.                                           This
Agreement may be executed and delivered in two or more counterparts, each of
which will be an original, but all of which will constitute one and the same
instrument.

    

     (c)              Non Waiver
                                No
waiver of any of the provisions of this Agreement by any Party will be deemed,
nor will it constitute, a waiver of any other provisions, whether or not
similar, nor will any waiver constitute a continuing waiver.  No
waiver will be binding unless executed in writing by the Party making the
waiver.

    

    (d)              Provisions
Separable                                           The
provisions of this Agreement are separable from each other, and no provision
will be affected or rendered invalid or unenforceable by virtue of the fact that
for any reason any other or others of them may be invalidated or made
unenforceable in whole or in part. The invalidity or unenforceability of any
terms or provisions hereof will in no way affect the validity or enforceability
of any other terms or provisions.

    

    (e)              Headings                      The
headings of articles and sections continued in this Agreement are for reference
purposes only and will not affect in any way the meaning or interpretation of
this Agreement.

    

    

    

    BALANCE
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    IN WITNESS WHEREOF, the
parties have executed and entered into this Agreement as of the day and year
first set forth above.

    

    

    VISION
WORLD, LLC

    

    By:              /s/Myles
Lewis

    

    Title:              Chief
Operating Officer

    

    

    EMERGING
VISION, INC.

    

    By: /s/Glenn
Spina

    

    Title:
President and Chief Executive Officer

    

    INSIGHT
MANAGED VISION CARE

    

    By: /s/Glenn
Spina

    

    Title:
President and Chief Executive Officer

    

    

    INSIGHT
IPA OF NEW YORK, INC.

    

    By: /s/Glenn
Spina

    

    Title:
President and Chief Executive Officer

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