Document:

srcl-ex106_26.htm

 

	
EXHIBIT 10.6
	
Execution Version

 

 

 

 

Stericycle, Inc.

___________________________________

First Amendment

Dated as of July 28, 2017

to

Note Purchase Agreement

Dated as of October 1, 2015

___________________________________

 

Re:2.89% Senior Notes, Series A, due October 1, 2021

and

3.18% Senior Notes, Series B, due October 1, 2023

 

 

 

 

4244257.02.06.doc

4242756

 

First Amendment to Note Purchase Agreement

This First Amendment dated as of July 28, 2017 (the or this “Agreement”) to the Note Purchase Agreement referred to below is between Stericycle, Inc., a Delaware corporation (the “Company”), and each of the institutions which is a signatory to this Agreement (collectively, the “Noteholders”).

Recitals:

Whereas, the Company and each of the Noteholders have heretofore entered into the Note Purchase Agreement dated as of October 1, 2015 (the “Note Purchase Agreement”), pursuant to which the Company issued on or about October 1, 2015 (a) $150,000,000 aggregate principal amount of its 2.89% Senior Notes, Series A, due October 1, 2021 (as amended, the “Series A Notes”) and (b) $150,000,000 aggregate principal amount of its 3.18% Senior Notes, Series B, due October 1, 2023 (as amended, the “Series B Notes” and together with the Series A Notes, collectively, the “Notes”);

Whereas, the Company and the Noteholders now desire to amend the Note Purchase Agreement and the Notes in the respects, but only in the respects, hereinafter set forth;

Whereas, all capitalized terms used herein and not defined herein shall have the meaning specified in the Note Purchase Agreement;

Whereas, all requirements of law have been fully complied with and all other acts and things necessary to make this Agreement a valid, legal and binding instrument according to its terms for the purposes herein expressed have been done or performed.

Now, therefore, upon the full and complete satisfaction of the conditions precedent to effectiveness set forth in Section 3.1 hereof, and for good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Company and each of the Noteholders do hereby agree as follows:

	
Section 1.
	
Amendments.

Section 1.1.Section 10.1(a) of the Note Purchase Agreement is hereby amended and restated in its entirety to read as follows:  

(i) The Company will not permit the Consolidated Leverage Ratio as of the end of any fiscal quarter of the Company to exceed  3.75 to 1.00; provided that if the Consolidated Leverage Ratio, on a pro forma basis as of any such date and immediately after giving effect to the settlement payment of the MDL Contract Action, is greater than 3.50 to 1.00, the Company may, in its sole discretion, elect to increase the maximum Consolidated Leverage Ratio permitted by this Section 10.1(a)(i) to 4.00 to 1.00 as of the 

 

	
Stericycle, Inc.
	
First Amendment

 

end of the fiscal quarter in which the settlement payment of the MDL Contract Action occurred and in any subsequent fiscal quarter ending on or prior to September 30, 2018 (the “MDL Period”); provided further in no event shall the elevated ratio permitted by the immediately preceding proviso extend after September 30, 2018.  Such election shall be made by the delivery of a written notice by the Company to the holders of Notes making reference to this Section 10.1(a) and notifying the holders of Notes of the Company’s election to increase the maximum Consolidated Leverage Ratio as provided above on or prior to the date of the actual or required delivery of a certificate required under Section 7.2 for the fiscal quarter in which the settlement payment of the MDL Contract Action occurred; and

(ii) If at the end of any fiscal quarter of the Company during the MDL Period the Consolidated Leverage Ratio exceeded 3.75 to 1.00 (an “MDL Leverage Increase”), the per annum interest rate (including any Default Rate, if applicable) otherwise applicable to each series of the Notes as specified in the first paragraph thereof shall be increased by 50 basis points (.50%) (the “MDL Leverage Increased Interest Rate”) from the date of such MDL Leverage Increase to but not including the date that the Consolidated Leverage Ratio is 3.75 to 1.00 or less.  The Company shall promptly, and in any event within 10 Business Days, following an MDL Leverage Increase notify the holders of the Notes in writing that an MDL Leverage Increase has commenced and the date of such commencement.  Payment of the MDL Leverage Increased Interest Rate shall not constitute a waiver of any Default or Event of Default hereunder.”

Section 1.2.Additional Definitions.  Schedule B to the Note Purchase Agreement is hereby amended to insert the following definitions, each in its respective alphabetical order:

“First Amendment” means the First Amendment dated as of July 28, 2017 to this Agreement between the Company and the holders party thereto.

“MDL Contract Action” means the claims made against the Company in In re: Stericycle, Inc., Steri-Safe Contract Litigation, Case No. 13 C 5795, MDL No. 2455 brought in the United States District Court for the Northern District of Illinois Eastern Division.

“MDL Leverage Increase” is defined in Section 10.1(a)(ii).

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Stericycle, Inc.
	
First Amendment

 

“MDL Leverage Increased Interest Rate” is defined in Section 10.1(a)(ii).

“MDL Period” is defined in Section 10.1(a)(i).

“Other Note Agreements” means each of the following note purchase agreements among the Company and the holders of notes party thereto: (i) the Note Purchase Agreement dated as of August 18, 2010, (ii) the Note Purchase Agreement dated as of October 22, 2012 and (iii) the Note Purchase Agreement dated as of April 30, 2015, each as amended, restated, joined, supplemented or otherwise modified from time to time.

“Term Loan Agreement” means the Term Loan Credit Agreement dated as of August 21, 2015 by and among the Company, certain Subsidiaries of the Company named therein, Bank of America, N.A., as administrative agent, and the other financial institutions party thereto, as amended, restated, joined, supplemented or otherwise modified from time to time.

Section 1.3.Amended Definitions.  Schedule B to the Note Purchase Agreement is hereby amended by amending and restating each of the following definitions in its entirety to read as follows:

“Consolidated EBITDA” means, for any period, for the Company and its Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Charges for such period, (ii) the provision for federal, state, local and foreign income taxes payable by the Company and its Subsidiaries for such period, (iii) depreciation and amortization expense, (iv) other non-recurring expenses of the Company and its Subsidiaries reducing such Consolidated Net Income which do not represent a cash item in such period or any future period, (v) non-cash stock compensation expenses of the Company and its Subsidiaries incurred in such period, (vi) up to $45,000,000 in the aggregate of cash charges associated with the settlement of the TCPA Action, (vii) up to $295,000,000 in the aggregate of cash charges associated with the settlement of the MDL Contract Action, and (viii) up to $5,000,000 in the aggregate of cash charges related to legal fees and expenses associated with (x) the MDL Contract Action, (y) the First Amendment and (z) the corresponding amendments to the Bank Credit Agreement, the Term Loan Agreement and Other Note Agreements minus (b) the following to the extent included in calculating such Consolidated Net Income: (i) federal, state, local 

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First Amendment

 

and foreign income tax credits of the Company and its Subsidiaries for such period and (ii) all non-cash items increasing Consolidated Net Income for such period; provided, however, that Consolidated EBITDA shall be increased by the amount of Transaction Costs incurred during such period to the extent such amount was deducted in determining Consolidated Net Income for such period.  For purposes of calculating Consolidated EBITDA for any period of four consecutive quarters, if during such period the Company or any Subsidiary shall have made any Acquisition or disposed of any Person or of all or substantially all of the operating assets of any Person, Consolidated EBITDA for such period shall be calculated after giving pro forma effect thereto as if such transaction occurred on the first day of such period.

“Increased Interest Rate” means the occurrence of a Primary Increased Interest Rate or MDL Leverage Increased Interest Rate, as applicable.

	
Section 2.
	
Representations and Warranties of the Company.

Section 2.1.To induce the Noteholders to execute and deliver this Agreement, the Company represents and warrants (which representations shall survive the execution and delivery of this Agreement) to the Noteholders that:

(a)this Agreement has been duly authorized, executed and delivered by the Company and, upon execution and delivery thereof by the parties hereto, this Agreement constitutes the legal, valid and binding obligation, contract and agreement of the Company enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors’ rights generally;

(b)the Note Purchase Agreement, as amended by this Agreement, constitutes the legal, valid and binding obligation, contract and agreement of the Company enforceable against it in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors’ rights generally;

(c)the execution, delivery and performance by the Company of this Agreement (i) has been duly authorized by all requisite corporate actions on the part of the Company, (ii) does not require the consent or approval of any governmental or regulatory body or agency, and (iii) will not (A) violate (1) any provision of law, statute, rule or regulation applicable to the Company or its certificate of incorporation or bylaws, (2) any order of any court or any rule, regulation or order of any other agency or government binding upon it, or (3) any provision of any material indenture, agreement or other instrument to which it is a party or by which its properties or assets are or may be bound, or (B) result in a breach or constitute (alone or with due notice or lapse of time or 

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First Amendment

 

both) a default under any indenture, agreement or other instrument referred to in clause (iii)(A)(3) of this Section 2.1(c);

(d)as of the date hereof and after giving effect to this Agreement, no Default or Event of Default has occurred which is continuing; and

(e)the representations and warranties contained in Section 5 of the Note Purchase Agreement are true and correct in all material respects with the same force and effect as if made by the Company on and as of the date hereof, except to the extent that any such representation or warranty expressly relates to an earlier date.

	
Section 3.
	
Conditions to Effectiveness of Amendments and Waivers.

Section 3.1.The amendments to the Note Purchase Agreement set forth herein shall not become effective until, and shall become effective when (the “Effective Date”), each of the following conditions shall have been satisfied:

(a)executed counterparts of this Agreement, duly executed by the Company and the holders of 51% in principal amount of the outstanding Notes, shall have been delivered to the Noteholders;

(b)copies of a favorable written opinion of counsel to the Company addressed to each of the Noteholders as to matters set forth in Section 2.1(a) through (c) hereof (provided that the opinion regarding Section 2.1(c)(iii)(3) will relate to the Other Note Purchase Agreements, Bank Credit Agreement and the Term Loan Agreement (as defined in the Note Purchase Agreement after giving effect to this Agreement)), in form and substance satisfactory to the Noteholders, shall have been delivered to the Noteholders;

(c)the representations and warranties of the Company set forth in Section 2 hereof shall be true and correct on and with respect to the date hereof, and the execution and delivery by the Company of this Agreement shall constitute certification by the Company of the same;

(d)the Company shall have paid a fee to each holder of Notes equal to five basis points (.05%) on the outstanding principal amount of Notes held by each such holder of Note as of the Effective Date;

(e)the Company shall have paid the fees and expenses of Chapman and Cutler LLP, special counsel to the Noteholders, incurred in connection with the negotiation, preparation, approval, execution and delivery of this Agreement for which an invoice has been provided; 

(f)the Company shall have delivered copies of an amendment to each of the Bank Credit Agreement and the Term Loan Agreement (as defined in the Note Purchase Agreement after giving effect to this Agreement), each amending such agreements in 

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First Amendment

 

substance consistent with the amendments to the Note Purchase Agreement as contemplated by this Agreement; and

(g)the Company shall have delivered copies of an amendment to each of the Other Note Agreements (as defined in the Note Purchase Agreement after giving effect to this Agreement) between the Company and the purchasers named therein, each amending such agreements in substance consistent with the amendments to the Note Purchase Agreement as contemplated by this Agreement.

Upon receipt and satisfaction of all of the foregoing, such amendments shall become effective.

	
Section 4.
	
Miscellaneous.

Section 4.1.This Agreement shall be construed in connection with and as part of the Note Purchase Agreement, and except as modified and expressly amended by this Agreement, all terms, conditions and covenants contained in the Note Purchase Agreement are hereby ratified and confirmed and shall be and remain in full force and effect.

Section 4.2.Any and all notices, requests, certificates and other instruments, including the Notes, may refer to the “Note Purchase Agreement” or the “Note Purchase Agreement dated as of October 1, 2015” without making specific reference to this Agreement, but nevertheless all such references shall be deemed to include this Agreement unless the context shall otherwise require.

Section 4.3.The descriptive headings of the various Sections or parts of this Agreement are for convenience only and shall not affect the meaning or construction of any of the provisions hereof.

Section 4.4.This Agreement shall be governed by and construed in accordance with New York law excluding choice‐of‐law principles of the law of New York that would require the application of the laws of jurisdiction other than New York.

Section 4.5.This Agreement may be executed in any number of counterparts, each executed counterpart constituting an original, but all together only one agreement.  This Agreement, together with the Note Purchase Agreement (as amended hereby) and the Notes, constitutes the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  Delivery of an executed counterpart of a signature page of this Agreement by telecopy or other electronic imaging means shall be effective as delivery of a manually executed counterpart of this Agreement.

 

 

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Stericycle, Inc.
	
Second Amendment

 

In Witness Whereof, the parties hereto have executed this Agreement as of the Effective Date.

 

	
Stericycle, Inc.

	
 
	
 
	
 

	
By
	
 
	
/s/ Daniel V. Ginnetti

	
 
	
Name:
	
Daniel V. Ginnetti

	
 
	
Title:
	
Chief Financial Officer, Executive Vice

	
 
	
 
	
President

 

 

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Metropolitan Life Insurance Company

	
 

	
General American Life Insurance Company

	
by
	
Metropolitan Life Insurance Company, Its Investment Manager

	
 
	
 
	
 

	
By
	
 
	
/s/ John Wills

	
 
	
Name:
	
John Wills

	
 
	
Title:
	
Senior Vice President & Managing Director

 

	
Brighthouse Life Insurance Company

	
by
	
MetLife Investment Advisors, LLC, Its Investment Manager

	
 

	
Erie family Life Insurance Company

	
by
	
MetLife Investment Advisors, LLC, Its Investment Manager

	
 

	
By
	
 
	
/s/ Judith A. Gulotta

	
 
	
Name:
	
Judith A. Gulotta

	
 
	
Title:
	
Managing Director

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
The Northwestern Mutual Life Insurance Company

	
 

	
by
	
Northwestern Mutual Investment Management Company, LLC, Its Investment Adviser

	
 
	
 
	
 

	
By
	
 
	
/s/ David A. Barras

	
 
	
Name:
	
David A. Barras

	
 
	
Title:
	
Managing Director

 

	
The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account

	
 

	
By
	
 
	
/s/ David A. Barras

	
 
	
Name:
	
David A. Barras

	
 
	
Title:
	
Its Authorized Representative

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
New York Life Insurance Company

	
 

	
By
	
 
	
/s/ A. Post Howland

	
 
	
Name:
	
A. Post Howland

	
 
	
Title:
	
Vice President

 

	
New York Life Insurance And Annuity Corporation

	
 

	
by
	
NYL Investors LLC Its Investment Manager

	
 
	
 

	
By
	
 
	
/s/ A. Post Howland

	
 
	
Name:
	
A. Post Howland

	
 
	
Title:
	
Vice President

 

	
New York Life Insurance and Annuity Corporation Institutionally Owned Life Insurance Separate Account (BOLI 3)

	
 

	
by
	
NYL Investors LLC Its Investment Manager

	
 
	
 

	
By
	
 
	
/s/ A. Post Howland

	
 
	
Name:
	
A. Post Howland

	
 
	
Title:
	
Vice President

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
The Bank of New York Mellon, a banking corporation organized under the laws of New York, not in its individual capacity but solely as trustee under that certain trust agreement dated as of July 1st, 2015 between New York Life Insurance Company (U.S.A.), as Beneficiary, John Hancock Life Insurance Company of New York, as Beneficiary, and the Bank of New York Mellon, as Trustee

	
 

	
by
	
New York Life Insurance Company, its Attorney-in-Fact

	
 
	
 

	
By
	
 
	
/s/ A. Post Howland

	
 
	
Name:
	
A. Post Howland

	
 
	
Title:
	
Vice President

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
State Farm Life Insurance Company

	
 

	
By
	
 
	
/s/ Julie Hoyer

	
 
	
Name:
	
Julie Hoyer

	
 
	
Title:
	
Investment Executive

	
 
	
 
	
 

	
By
	
 
	
/s/ Jeffrey Attwood

	
 
	
Name:
	
Jeffrey Attwood

	
 
	
Title:
	
Investment Professional

 

	
State Farm Life and Accident Assurance Company

	
 

	
By
	
 
	
/s/ Julie Hoyer

	
 
	
Name:
	
Julie Hoyer

	
 
	
Title:
	
Investment Executive

	
 
	
 
	
 

	
By
	
 
	
/s/ Jeffrey Attwood

	
 
	
Name:
	
Jeffrey Attwood

	
 
	
Title:
	
Investment Professional

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Nationwide Life Insurance Company

	
 

	
By
	
 
	
/s/ Jason Comisar

	
 
	
Name:
	
Jason Comisar

	
 
	
Title:
	
Authorized Signatory

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Thrivent Financial For Lutherans

	
 

	
By
	
 
	
/s/ Martin Rosucker

	
 
	
Name:
	
Martin Rosucker

	
 
	
Title:
	
Managing Director

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Principal Life Insurance Company

	
 

	
By:
	
Principal Global Investors, LLC, a Delaware limited liability company, its authorized signatory

	
 

	
By
	
 
	
/s/ Eldwin A. Nichols

	
 
	
Name:
	
Eldwin A. Nichols

	
 
	
Title:
	
Counsel

	
 
	
 
	
 

	
By
	
 
	
/s/ Colin Pennycooke         

	
 
	
Name:
	
Colin Pennycooke

	
 
	
Title:
	
Counsel

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
State of Wisconsin Investment Board

	
 

	
By
	
 
	
/s/ Christopher P. Prestigiacomo

	
 
	
Name:
	
Christopher P. Prestigiacomo

	
 
	
Title:
	
Portfolio Manager

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
By:
	
Fort Washington Investment Advisors, as investment adviser for Auto-Owners Insurance Company

	
 

	
By
	
 
	
/s/ Douglas E. Kelsey  

	
 
	
Name:
	
Douglas E. Kelsey

	
 
	
Title:
	
VP – Private Placements

	
 
	
 
	
 

	
By
	
 
	
/s/ Brendan White

	
 
	
Name:
	
Brendan White

	
 
	
Title:
	
Co-Chief Investment Officer

 

	
By:
	
Fort Washington Investment Advisors, as investment adviser for Auto-Owners Life Insurance Company

	
 

	
By
	
 
	
/s/ Douglas E. Kelsey  

	
 
	
Name:
	
Douglas E. Kelsey

	
 
	
Title:
	
VP – Private Placements

	
 
	
 
	
 

	
By
	
 
	
/s/ Brendan White

	
 
	
Name:
	
Brendan White

	
 
	
Title:
	
Co-Chief Investment Officer

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
American United Life Insurance Company

	
 

	
By
	
 
	
/s/ Michael I. Bullock

	
 
	
Name:
	
Michael I. Bullock

	
 
	
Title:
	
VP – Private Placements

 

	
The State Life Insurance Company

	
 

	
By:
	
American United Life Insurance Company

	
Its:
	
Agent

	
 

	
By
	
 
	
/s/ Michael I. Bullock

	
 
	
Name:
	
Michael I. Bullock

	
 
	
Title:
	
VP – Private Placements

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Ameritas Life Insurance Corp.

	
Ameritas Life Insurance Corp. of New York

	
 

	
By
	
Ameritas Investment Partners, Inc., as Agent

	
 

	
By
	
 
	
/s/ Tina Udell

	
 
	
Name:
	
Tina Udell

	
 
	
Title:
	
Vice President & Managing Director

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
PHL Variable Insurance Company

	
 

	
By
	
 
	
/s/ Christopher M. Wilkos

	
 
	
Name:
	
Christopher M. Wilkos

	
 
	
Title:
	
Vice President

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Woodmen of the World Life Insurance Society

	
 

	
By
	
 
	
/s/ Dean Holdsworth

	
 
	
Name:
	
Dean Holdsworth

	
 
	
Title:
	
Director Mortgage Loan/RE

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Southern Farm Bureau Life Insurance Company

	
 

	
By
	
 
	
/s/ David Divine

	
 
	
Name:
	
David Divine

	
 
	
Title:
	
Senior Portfolio Manager

 

 

	
Stericycle, Inc.
	
First Amendment

 

Accepted and Agreed to:

 

	
Physicians Mutual Insurance Company

	
 

	
by
	
Prudential Private Placement Investors, L.P. (as Investment Advisor)

	
 

	
by
	
Prudential Private Placement Investors, Inc. (as its General Partner)

	
 

	
By
	
 
	
/s/ Physicians Mutual Insurance Company

	
 
	
Name:
	
 

	
 
	
Title:
	
Vice PresidentExhibit

One Penn Plaza, Suite 19th Floor
New York, NY 10119
(212) 845-8200

April 24, 2017

Dr. David R. Guyer
c/o Ophthotech Corporation
One Penn Plaza
New York, NY 10119

Dear David: 

Subject to your execution below, this letter hereby further amends the employment letter, dated April 26, 2013, between you and Ophthotech Corporation (the “Company”) and as amended by the letter dated February 26, 2015 between you and the Company (as amended, the “Employment Letter”) by making the following changes: 

		
	1.
	Section 1 of the Employment Letter is hereby replaced in its entirety by the following: 
 
1.    Employment.   Effective immediately, you will continue to be employed on a full time basis as the Company’s Chief Executive Officer, reporting to the Company’s Board of Directors (the “Board”), and you shall have the duties, responsibilities and authority commensurate with your position in companies of similar type and size; provided, however, that it is understood that among such responsibilities shall be your assistance, as reasonably directed by the Board, with the transition of such responsibilities to a new Chief Executive Officer effective July 1, 2017.  Effective July 1, 2017, you will be employed to serve on a full time basis as the Executive Chairman of the Board.  As the Company’s Executive Chairman, you will report to the Board and you shall have the duties, responsibilities and authority commensurate with your position in companies of similar type and size.  You will continue while employed as Executive Chairman to be nominated to serve on the Board each time your term(s) as a director would otherwise expire, provided that such nomination(s) shall be subject to the Board’s exercise of its fiduciary duties.  You agree to devote your full business time, efforts, skill, knowledge, attention and energies to the advancement of the Company’s business and interests and to the performance of your duties and responsibilities as an employee of the Company.    Notwithstanding the foregoing, you shall be permitted to continue serving on the boards of directors of other companies, provided in each case that such service (a) does not entail an operating role, does not materially interfere with the performance of your duties and responsibilities to the Company, and does not compete with the Company and your role as provided in Section 16, and (b) shall, with respect to public company boards, be limited if, as determined by the Board, such service exceeds generally prevailing 

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“overboarding” limits for non-chief executive officer directors.  For purposes hereof, a business will be deemed to be competitive with the Company if it engages in the research, development or commercialization of pharmaceutical or diagnostic products for ocular diseases with the same primary mechanism of action as any compound or drug that is at any such time of determination under active research or development or being commercialized by the Company or any of its subsidiaries (whether the Company or any such subsidiary currently has or in the future acquires rights to such compound or drug).  In addition, you shall be permitted to provide consulting services to companies that are not competitive with the Company, provided that such services do not materially interfere with the performance of your duties and responsibilities as an employee of the Company. You agree to furnish a summary of the time you spend providing service as a consultant to the Board upon request. You further agree to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes therein not inconsistent with this letter that may be adopted from time to time by the Company.  In the event that, due to future business activities of the Company or of another entity to which you are providing services, a competitive situation arises, you shall promptly, and in any event within ten (10) business days of gaining knowledge thereof, discuss the same with the Board and, if requested by the Board, resign from the other competitive activities as soon as reasonably feasible and, in the interim, recuse yourself from discussion of competitive matters.

		
	2.
	Section 2 of the Employment Letter is hereby replaced in its entirety by the following: 
 
2.    Base Salary.  Through December 31, 2017, your base salary will be at the rate of $24,038.46 per bi-weekly pay period (which if annualized equals $625,000), less all applicable taxes and withholdings.  Effective January 1, 2018, your base salary will be at the rate of $20,192.31 per bi-weekly pay period (which if annualized equals $525,000), less all applicable taxes and withholdings.  Base salary will be paid in installments in accordance with the Company’s regular payroll practices. 

		
	3.
	Section 3 of the Employment Letter is hereby replaced in its entirety by the following: 
 
3.    Discretionary Bonus.  Following the end of calendar year 2017 and subject to the approval of the Board, you will be eligible for a performance bonus of up to 65% of your annualized base salary, based on your personal performance and the Company’s performance during the 2017 calendar year, as determined by the Board in its sole discretion.  Following the end of each calendar year beginning with calendar year 2018 and subject to the approval of the Board, you will be eligible for a performance bonus of up to 50% of your annualized base salary, based on your personal performance and the Company’s performance during the applicable calendar year, as determined by the Board in its sole discretion.  In any event, you must be an active employee of the Company on the date the bonus is distributed in order to be eligible for and to earn any bonus award, as it also serves as an incentive to remain employed by the Company, except as otherwise provided herein.  

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	4.
	Section 6 of the Employment Letter is hereby replaced in its entirety by the following: 
 
6.    Severance. If your employment is terminated by the Company, or, if applicable, its successor, without Cause or by you for any reason, then (subject to your executing (and not revoking) a separation agreement as described below) the Company, or its successor, will (i) pay you an amount equal to twelve (12) months of your base salary (at the greater of (x) an annualized base salary rate of $625,000 or (y) your then-current annualized base salary rate), less standard employment-related withholdings and deductions, which amount shall be paid to you in a lump sum on the Payment Date (as defined below), (ii) pay you a pro-rated portion of the bonus to which you would otherwise be entitled pursuant to Section 3 hereof for the year in which your employment terminates (at the greater of a 65% target bonus rate or your then-current target bonus rate, and without regard to whether the performance goals with respect to such target bonus have been established or met), less standard employment-related withholdings and deductions, which amount shall be paid to you on the Payment Date, and (iii) provide for continued coverage, at the Company’s expense, under the Company’s medical and dental benefit plans to the extent permitted under such plans for a period of twelve (12) months immediately following the date of the termination of your employment.  The Company shall not be obligated to pay to you the severance payments provided for herein unless you have timely executed (and not revoked) a separation agreement in substantially the form attached hereto.  Such separation agreement must be executed and become binding and enforceable within sixty (60) calendar days after the effective date of your termination of employment (such 60th day, the “Payment Date”); provided, however, that if the 60th day following the date of termination occurs in the next calendar year following the date of termination, then the Payment Date shall be no earlier than January 1 of such following calendar year and, if applicable, shall be subject to Section 17.  You shall also be entitled to (A) prompt payment in accordance with the Company’s regular payroll practices of any unpaid base salary and accrued unused vacation time in accordance with Company policy through the date of your termination, (B) if earned and unpaid, payment of any prior year bonus at such time as it would otherwise be paid to Company employees, (C) vested benefits under Company benefit plans in accordance with the terms of such plans, and (D) vesting and payment, as may be applicable, of equity grants and/or retention bonuses in accordance with the terms of the plans and/or other documents governing such grants and/or bonuses.    
 
If your employment is terminated by the Company or, if applicable, its successor without Cause or by you for Good Reason within twelve months following a Change in Control Event (as defined in the Company’s 2013 Stock Incentive Plan), then (subject to your executing (and not revoking) a separation agreement as described in the immediately preceding paragraph) the Company or its successor will, in addition to the severance payments set forth in the immediately preceding paragraph, provide that any then unvested equity awards held by you that vest solely based on the passage of time shall immediately vest in full and become exercisable or free from forfeiture or repurchase, as applicable; provided, however, that this equity award acceleration provision shall not 

3

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supersede or replace any other provision in an agreement covering an equity award granted to you by the company that is at least as beneficial to you. 

For purposes hereof, “Cause” shall mean that: (i) you failed to attempt in good faith, refused or willfully neglected to perform and discharge your material duties and responsibilities; (ii) you have been convicted of, or pled nolo contendere to, a felony or other crime involving fraud or moral turpitude; (iii) you breached your fiduciary duty or loyalty to the Company, or acted fraudulently or with material dishonesty in discharging your duties to the Company; (iv) you undertook an intentional act or omission of misconduct that materially harmed or was reasonably likely to materially harm the business, interests, or reputation of the Company; (v) you materially breached any material provision hereof; or (vi) you materially breached any material provision of any Company code of conduct or ethics policy.  Notwithstanding the foregoing, “Cause” shall not be deemed to have occurred unless: (A) the Company provides you with written notice that it intends to terminate your employment hereunder for one of the grounds set forth in subsections (i), (v) or (vi) within sixty (60) days of such reason(s) occurring, (B) if such ground is capable of being cured, you have failed to cure such ground within a period of thirty (30) days from the date of such written notice, and (C) the Company terminates your employment within six (6) months from the date that Cause first occurs. 
 
For purposes hereof, “Good Reason” shall mean, without your written consent: (i) any change in your position, title or reporting relationship with the Company that diminishes in any material respect your title, authority, duties or responsibilities, including your removal as a member of the Board; (ii) any material reduction in your base compensation; (iii) a material change in the primary geographic location at which services are to be performed by you (unless the new location is closer to your primary residence than the prior location); or (iv) a material breach of any provision hereof by the Company or any successor or assign.  Notwithstanding the foregoing, “Good Reason” shall not be deemed to have occurred unless: (A) you provide the Company with written notice that you intend to terminate your employment hereunder for one of the grounds set forth in subsections (i), (ii), (iii) or (iv) of the immediately preceding sentence within sixty (60) days of such reason(s) occurring, (B) if such ground is capable of being cured, the Company has failed to cure such ground within a period of thirty (30) days from the date of such written notice, and (C) you terminate your employment within six (6) months from the date that Good Reason first occurs.  For purposes of clarification, the above-listed conditions shall apply separately to each occurrence of Good Reason and failure to adhere to such conditions in the event of Good Reason shall not disqualify you from asserting Good Reason for any subsequent occurrence of Good Reason.  

		
	5.
	The form of separation agreement previously attached to the Employment Letter as the “Separation Agreement and Release of Claims,” is hereby replaced in its entirety with the form attached to this amendment as Exhibit A.  The form of release required in connection with the provision to you of any retention bonus or grant shall be deemed modified to the extent necessary for you not to release thereunder any rights you may 

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have to an annual bonus or equity grant that has vested or remains subject to vesting due to your continued employment with the Company.

		
	6.
	Section 9 of the Employment Letter is hereby replaced in its entirety by the following:

9.    Invention, Non-Disclosure, Non-Competition and Non-Solicitation Agreement.  Section 4(b) of the Invention, Non-Disclosure, Non-Competition and Non-Solicitation Agreement dated April 26, 2013 that you previously executed for the benefit of the Company is hereby amended as follows: (b) As used herein, a business will be deemed “Competitive” with the Company if it engages in the research, development or commercialization of pharmaceutical or diagnostic products for ocular diseases with the same primary mechanism of action as any compound or drug that is at any such time of determination under active research or development or being commercialized by the Company or any of its subsidiaries (whether the Company or any such subsidiary currently has or in the future acquires rights to such compound or drug).

		
	7.
	Section 12 of the Employment Letter is hereby replaced in its entirety by the following: 
 
12.    At-Will Employment.  This letter shall not be construed as an agreement, either express or implied, to employ you for any stated term, and shall in no way alter the Company’s policy of employment at-will, under which both the Company and you remain free to end the employment relationship for any reason, at any time, with or without cause or notice.  Although your job duties, title, compensation and benefits, as well as the Company’s personnel policies and procedures, may change from time to time, the “at-will” nature of your employment may only be changed by a written agreement signed by you and an authorized representative of the Board that expressly states the intention to modify the at-will nature of your employment.  Similarly, nothing in this letter shall be construed as an agreement, either express or implied, to pay you any compensation or grant you any benefit beyond the end of your employment with the Company.  This letter supersedes all prior understandings, whether written or oral, relating to the terms of your employment.  

The Company agrees to reimburse you for your reasonable attorneys’ fees and expenses in connection with reviewing and negotiating the terms of this amendment in an amount not to exceed $10,000.

You hereby agree that you and the Company are executing this amendment by mutual agreement, that you hereby consent to the changes described herein, and that nothing herein shall constitute grounds for “Good Reason” as defined in Employment Letter.  In the event of any conflict between the terms of this amendment and the terms of the Employment Letter, the terms of this amendment shall control.  Except as expressly modified herein, the terms of the Employment Letter remain in full force and effect.  This amendment may only be modified in a document signed by both the Company and you.  This amendment may be executed in counterparts, each of which will be deemed an original, but all of which will be deemed one and the same instrument. 

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[Remainder of page intentionally left blank]

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If this amendment is acceptable to you, please sign and date this amendment below and return the signed and dated amendment to me on or before April 24, 2017 at 12:00 p.m., Eastern time. 

Sincerely, 
OPHTHOTECH CORPORATION

By:  /s/ Amy R. Sheehan                         
Amy R. Sheehan    
Vice President, Human Resources

ACCEPTED AND AGREED:

/s/ David R. Guyer                            
Dr. David R. Guyer

Date: 4/24/2017                                

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Exhibit A

SEPARATION AGREEMENT AND RELEASE OF CLAIMS
Ophthotech Corporation, a Delaware corporation (the “Company”), and David Guyer (the “Employee”) (together, the “Parties”), entered into a letter agreement dated April 26, 2013, as amended February 26, 2015 and April 24, 2017 (as amended, the “Employment Letter”).  Any capitalized terms not defined herein shall have the meanings ascribed to them in the Employment Letter.  This is the release by Employee of all claims against the Releasees (as defined below) arising out of the Employee’s employment with or separation from the Company (the “Release”).  The consideration for the Employee’s agreement to this Release consists of the severance payments set forth in Section 6 of the Employment Letter, which are conditioned on, among other things, termination of the Employee’s employment by the Company without Cause or by the Employee for any reason and effectiveness of this Release based on the Employee’s timely execution and nonrevocation hereof.
		
	1.
	Tender of Release.  This Release is automatically tendered to the Employee upon the termination of the Employee’s employment by the Company without Cause or by the Employee for any reason.  

		
	2.
	Release of Claims.  The Employee voluntarily, fully, forever, irrevocably and unconditionally releases and discharges the Company, its affiliates, subsidiaries and parent companies and each of their predecessors, successors, assigns, and their current and former members, partners, directors, managers, officers, employees, representatives, attorneys, agents, and all persons acting by, through, under or in concert with any of the foregoing (any and all of whom or which are hereinafter referred to as the “Releasees”), from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies, damages, actions, causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorney’s fees and costs actually incurred), of any nature whatsoever, known or unknown that the Employee now has, owns or holds, or claims to have, own, or hold, or that he at any time had, owned, or held, or claimed to have had, owned, or held against any Releasee arising out of the Employee’s employment with or separation from the Company (collectively, “Claims”).  This release of Claims includes, without implication of limitation, the release of all Claims:

		
	•
	of breach of contract;

		
	•
	of retaliation or discrimination under federal, state or local law (including, without limitation, Claims of age discrimination or retaliation under the Age Discrimination in Employment Act, Claims of disability discrimination or retaliation under the Americans with Disabilities Act, Claims of discrimination or retaliation under Title VII of the Civil Rights Act of 1964 and Claims of discrimination or retaliation under state law);

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	•
	under any other federal or state statute, to the fullest extent that Claims may be released;

		
	•
	of defamation or other torts;

		
	•
	of violation of public policy;

		
	•
	for wages, salary, bonuses, vacation pay or any other compensation or benefits; and

		
	•
	for damages or other remedies of any sort, including, without limitation, compensatory damages, punitive damages, injunctive relief and attorney’s fees.

Notwithstanding anything to the contrary contained herein, this Release does not apply to or affect (i) the Employee’s right to receive the severance payments set forth in Section 6 of the Employment Letter, (ii) the Employee’s ownership of, and the Employee’s rights by virtue of his ownership of, any capital stock or other securities of the Company, including vested equity grants, (iii) the Employee’s rights under the retention letter agreement dated January 17, 2017 and documents referenced therein, or (iv) the Indemnification Agreement between the Company and the Employee dated June 2, 2016, any other rights of indemnification or exculpation of which the Employee is the beneficiary under the corporate charter, bylaws or other charter or organizational instruments or benefit or equity plans of the Company or any other Releasee or at law and rights of coverage to which the Employee may be entitled under any director and officer liability insurance policy of the Company or any other Releasee.  Further, nothing in this Release prevents Employee from filing a charge with, cooperating with, or participating in any investigation or proceeding before, the Equal Employment Opportunity Commission or a state fair employment practices agency (except that Employee acknowledges that he may not recover any monetary benefits in connection with any such charge, investigation, or proceeding, and Employee further waives any rights or claims to any payment, benefit, attorneys’ fees or other remedial relief in connection with any such charge, investigation or proceeding).
		
	3.
	Ongoing Obligations of the Employee; Enforcement Rights.  The Employee reaffirms his ongoing obligations as well as the Company’s enforcement rights provided for in the Invention, Non-Disclosure, Non-Competition and Non-Solicitation Agreement between the Company and the Employee dated April 26, 2013, as amended (the “NDA”).

		
	4.
	Scope of Disclosure Restrictions. Nothing in this Release, or in the NDA or elsewhere, prohibits Employee from communicating with government agencies about possible violations of federal, state, or local laws or otherwise providing information to government agencies, filing a complaint with government agencies, or participating in government agency investigations or proceedings.  Employee is not required to notify the Company of any such communications; provided, however, that nothing herein authorizes the disclosure of information Employee obtained through a communication that was subject to the attorney-client privilege.  Further, notwithstanding Employee’s 

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confidentiality and nondisclosure obligations, Employee is hereby advised as follows pursuant to the Defend Trade Secrets Act: “An individual shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that (A) is made (i) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (ii) solely for the purpose of reporting or investigating a suspected violation of law; or (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  An individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (A) files any document containing the trade secret under seal; and (B) does not disclose the trade secret, except pursuant to court order.”
		
	5.
	No Assignment.  The Employee represents that he has not assigned to any other person or entity any Claims against any Releasee.  

		
	6.
	Right to Consider and Revoke Release.  The Employee acknowledges that he has been given the opportunity to consider this Release for a period ending twenty-one (21) days after the tender of the Release.  In the event the Employee executed this Release within less than twenty-one (21) days after the tender of the Release, he acknowledges that such decision was entirely voluntary and that he had the opportunity to consider this Release until the end of the twenty-one (21) day period.  To accept this Release, the Employee shall deliver a signed Release to the Chairman of the Compensation Committee of the Board (the “Chair”) within such twenty-one (21) day period.  For a period of seven (7) days from the date when the Employee executes this Release (the “Revocation Period”), he shall retain the right to revoke this Release by written notice that is received by the Chair on or before the last day of the Revocation Period.  This Release shall take effect only if it is executed within the twenty-one (21) day period as set forth above and if it is not revoked pursuant to the preceding sentence.  If those conditions are satisfied, this Release shall become effective and enforceable on the date immediately following the last day of the Revocation Period.

		
	7.
	Other Terms.

		
	a.
	Legal Representation; Review of Release.  The Employee acknowledges that he has been advised to discuss all aspects of this Release with his attorney, that he has carefully read and fully understands all of the provisions of this Release and that he is voluntarily entering into this Release.

		
	b.
	Binding Nature of Release.  This Release shall be binding upon the Employee and upon his heirs, administrators, representatives and executors.

		
	c.
	Modification of Release; Waiver.  This Release may be amended, only upon a written agreement executed by the Employee and the Company.

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	d.
	Severability.  In the event that at any future time it is determined by an arbitrator or court of competent jurisdiction that any covenant, clause, provision or term of this Release is illegal, invalid or unenforceable, the remaining provisions and terms of this Release shall not be affected thereby and the illegal, invalid or unenforceable term or provision shall be severed from the remainder of this Release.  In the event of such severance, the remaining covenants shall be binding and enforceable.

		
	e.
	Governing Law and Interpretation.  This Release shall be deemed to be made and entered into in the State of New York and shall in all respects be interpreted, enforced and governed under the laws of the State of New York, without giving effect to the conflict of laws provisions of New York law that would require the application of law of any other jurisdiction.  The language of all parts of this Release shall in all cases be construed as a whole, according to its fair meaning, and not strictly for or against either of the Parties.

		
	f.
	Entire Agreement; Absence of Reliance.  The Employee acknowledges that he is not relying on any promises or representations by the Company or its agents, representatives or attorneys of either of them regarding any subject matter addressed in this Release.

So agreed by the Employee:
	
		
	                                
Dr. David Guyer
	                          
Date

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