Document:

Exhibit 10.1

 

 

SIXTH AMENDMENT AND MODIFICATION AGREEMENT

 

 

THIS SIXTH AMENDMENT
AND MODIFICATION AGREEMENT (hereinafter referred to as this “Sixth Amendment”) is made this 28th
day of March, 2012, by and among

 

MAIDENFORM, INC.,
a corporation duly organized, validly existing and in good standing under the laws of the State of New York, having its principal
office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as the “Borrower”),

 

AND

 

MAIDENFORM BRANDS,
INC., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware having its
principal office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “Holdings”),

 

AND

 

MAIDENFORM INTERNATIONAL,
LTD., a corporation duly organized, validly existing and in good standing under the laws of the State of New York having its
principal office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “International”),

 

AND

 

MF RETAIL, INC.,
a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware having its principal
office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “Retail”),

 

AND

 

ELIZABETH NEEDLE
CRAFT, INC., a corporation duly organized, validly existing and in good standing under the laws of the State of New York having
its principal office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “Elizabeth
Needle Craft”),

 

AND

 

NICHOLAS NEEDLECRAFT,
INC., a corporation duly organized, validly existing and in good standing under the laws of the State of New York having its
principal office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “Nicholas Needlecraft”),

 

AND

 

CRESCENT INDUSTRIES,
INC., a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware having its
principal office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “Crescent”),

 

AND

 

    	 

    	 

    

 

MAIDENFORM (INDONESIA)
LIMITED, a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware having
its principal office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “Indonesia”),

 

AND

 

MAIDENFORM (BANGLADESH)
LIMITED, a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware having
its principal office located at 485 U.S. Highway 1 South, Iselin, New Jersey 08830 (hereinafter referred to as “Bangladesh”,
and hereinafter Holdings, International, Retail, Elizabeth Needle Craft, Nicholas Needlecraft, Crescent, Indonesia, and Bangladesh
shall be collectively referred to as the “Guarantors”),

 

AND

 

BANK OF AMERICA,
N.A., a national banking association duly organized and validly existing under the laws of the United States of America, having
an office located at 750 Walnut Avenue, Cranford, New Jersey 07016, in its capacity as a Lender, the letter of credit issuer and
the swing line lender (hereinafter referred to as “Bank of America”),

 

AND

 

CAISSE DE DÉPÔT
ET PLACEMENT DU QUÉBEC, a financial institution having an office located at 1000 place Jean-Paul-Riopelle, Montreal,
Quebec H2Z 2B3, in its capacity as a Lender (hereinafter referred to as “CDP”),

 

AND

 

WELLS FARGO BANK,
N.A., a national banking association duly organized and validly existing under the laws of the United States of America, having
an office located at 120 Mountain View Road, Basking Ridge, New Jersey 07920, in its capacity as a Lender (hereinafter referred
to as “Wells Fargo”, and hereinafter Bank of America, CDP, and Wells Fargo shall be collectively referred to
as the “Lenders”),

 

AND

 

BANK OF AMERICA,
N.A., a national banking association duly organized and validly existing under the laws of the United States of America, having
an office located at 750 Walnut Avenue, Cranford, New Jersey 07016, in its capacity as administrative agent for the Lenders (hereinafter
referred to as the “Administrative Agent”).

 

WITNESSETH:

 

WHEREAS, pursuant
to the terms, conditions, and provisions of that certain Credit Agreement dated June 15, 2007, executed by and among the Borrower,
Holdings, Bank of America and CDP, as lenders (hereinafter collectively referred to as the “Original Lenders”),
and the Administrative Agent (hereinafter, as said Credit Agreement has been previously amended and modified, referred to as the
“Credit Agreement”), Bank of America and CDP made available to the Borrower (i) a term loan facility in the
original aggregate principal amount of $100,000,000.00 (hereinafter, as said term loan has been previously amended and modified,
referred to as the “Term Loan Facility”) and (ii) a revolving credit loan facility in the maximum aggregate
principal amount of up to $50,000,000.00 (hereinafter, as said revolving credit loan facility has been previously amended and modified,
referred to as the “Revolving Credit Loan Facility”, and hereinafter the Term Loan Facility and the Revolving
Credit Loan Facility shall be collectively referred to as the “Loan Facilities”); and

    	 

    	 

    
 

 

WHEREAS, Bank
of America’s “Revolving Loan Commitment” (as such term is defined in the Credit Agreement) under the Revolving
Credit Loan Facility is evidenced by that certain Revolving Note dated June 15, 2007, executed by the Borrower, as maker, in favor
of Bank of America, as payee, in the maximum principal amount of up to $25,000,000.00 (hereinafter referred to as the “Original
Revolving Credit Loan Note #1”); and

 

WHEREAS, CDP’s
“Revolving Loan Commitment” (as such term is defined in the Credit Agreement) under the Revolving Credit Loan Facility
is evidenced by that certain Revolving Note dated June 15, 2007, executed by the Borrower, as maker, in favor of CDP, as payee,
in the maximum principal amount of up to $25,000,000.00 (hereinafter referred to as the “Original Revolving Credit Loan
Note #2”); and

 

WHEREAS, pursuant
to the terms, conditions, and provisions of that certain Guaranty dated as of June 15, 2007 executed by Holdings, International,
Retail, Elizabeth Needle Craft, Nicholas Needlecraft, Crescent, Indonesia, Maidenform Online, Inc., a Delaware corporation (hereinafter
referred to as “Online”), and NCC Industries, Inc., a New York corporation (hereinafter referred to as “NCC
Industries”, and hereinafter Holdings, International, Retail, Elizabeth Needle Craft, Nicholas Needlecraft, Crescent,
Indonesia, Online, and NCC Industries shall be collectively referred to as the “Original Guarantors”), on
a joint and several basis, in favor of the Administrative Agent (hereinafter, as said Guaranty has been previously amended
and modified, referred to as the “Guaranty”), the Original Guarantors guarantied the payment and performance
of all of the obligations of the Borrower owed to the Administrative Agent and the Original Lenders under the Credit Agreement
and the other “Loan Documents” (as such term is defined in the Credit Agreement); and

 

WHEREAS, pursuant
to the terms, conditions, and provisions of that certain Security Agreement dated as of June 15, 2007 executed by the Original
Guarantors in favor of the Administrative Agent and the Lenders (hereinafter, as said Security Agreement has been previously amended
and modified, referred to as the “Security Agreement”), the Original Guarantors granted to the Administrative
Agent a security interest in and to certain “Collateral” (as such term is defined in the Security Agreement) as collateral
security for their respective obligations under the Guaranty; and

 

WHEREAS, on
(i) September 27, 2007, NCC Industries was merged with and into the Borrower, with the Borrower being the surviving entity and
(ii) April 28, 2010, Online was merged with and into the Borrower, with the Borrower being the surviving entity; and

 

WHEREAS, in
connection with the execution and delivery of this Sixth Amendment, CDP has executed and delivered (i) to Bank of America that
certain Assignment and Assumption Agreement dated of even date herewith (hereinafter referred to as the “BOA Assignment”),
pursuant to which CDP has sold, assigned, transferred and set over to Bank of America a portion of its Revolving Loan Commitment
in the principal amount of $5,000,000.00 and (ii) to Wells Fargo that certain Assignment and Assumption Agreement dated of even
date herewith (hereinafter referred to as the “Wells Fargo Assignment”), pursuant to which CDP has sold, assigned,
transferred and set over to Wells Fargo the remaining portion of its Revolving Loan Commitment in the principal amount of $20,000,000.00;
and

 

WHEREAS, Bank
of America’s Revolving Loan Commitment under the Revolving Credit Loan Facility, after giving effect to the BOA Assignment,
is evidenced by that certain First Substitute Revolving Note #1 dated of even date herewith, executed by the Borrower, as maker,
in favor of Bank of America, as payee, in the maximum principal amount of up to $30,000,000.00 (hereinafter referred to as the
“Revolving Credit Loan Note #1”), which Revolving Credit Loan Note #1 replaces the Original Revolving Credit
Loan Note #1 in its entirety; and

 

WHEREAS, Wells
Fargo’s Revolving Loan Commitment under the Revolving Credit Loan Facility, as a result of the Wells Fargo Assignment, is
evidenced by that certain First Substitute Revolving Note #2 dated of even date herewith, executed by the Borrower, as maker, in
favor of Wells Fargo, as payee, in the maximum principal amount of up to $20,000,000.00 (hereinafter referred to as the “Revolving
Credit Loan Note #2”, and hereinafter the Revolving Credit Loan Note #1 and the Revolving Credit Loan Note #2 shall be
collectively referred to as the “Revolving Credit Loan Notes”), which Revolving Credit Loan Note #2 replaces
the Original Revolving Credit Loan Note #2 in its entirety; and

    	 

    	 

    
 

 

WHEREAS, in
connection with the execution and delivery of this Sixth Amendment, Bangladesh has executed and delivered (i) that certain Counterpart
for Additional Guarantor dated of even date herewith (hereinafter referred to as the “Guaranty Counterpart”),
pursuant to which Bangladesh has joined with the other Original Guarantors (hereinafter Bangladesh and the Original Guarantors
shall be collectively referred to as the “Guarantors”) as a party to the Guaranty, and (ii) that certain Counterpart
for Additional Grantor dated of even date herewith (hereinafter referred to as the “Security Agreement Counterpart”),
pursuant to which Bangladesh has joined with the other Original Guarantors as a party to the Security Agreement; and

 

WHEREAS, the
parties hereto have agreed to further amend and modify the terms, conditions, and provisions of the Credit Agreement and the other
Loan Documents for the purposes more fully set forth and described herein; and

 

WHEREAS, defined
terms used but not expressly defined herein shall have the same meanings when used herein as set forth in the Credit Agreement.

 

NOW, THEREFORE,
intending to be legally bound hereby, the parties hereto hereby promise, covenant, and agree as follows:

 

1.        Accuracy of Recitals.
The Borrower and the Guarantors hereby represent and warrant to the Administrative Agent and the Lenders that all of the recitals
contained in this Sixth Amendment are true, correct and accurate.

 

2.        Amounts Outstanding.
As of March 28, 2012, there was outstanding under (i) the Revolving Credit Loan Facility, the principal sum of $-0- in Revolving
Loans, and Letters of Credit as set forth and described on Schedule “A” attached hereto and made a part hereof,
and (ii) the Term Loan Facility, the principal sum of $69,050,000.00, in each case together with unpaid accrued interest and fees,
without offset, defense, or counterclaim, all of which are hereby expressly waived by the Borrower and the Guarantors.

 

3.        Credit Agreement.
The Credit Agreement is hereby further amended and modified as follows:

 

(i)        Section 1.1 of the Credit
Agreement is hereby amended and modified by deleting the existing definition of “Revolving Loan Commitment Termination Date”
and inserting the following new definition of “Revolving Loan Commitment Termination Date” in its place and stead:

 

““Revolving Loan
Commitment Termination Date” means June 15, 2014.”

 

(ii)        Section 1.1 of the Credit
Agreement is hereby amended and modified by deleting the existing definition of “Consolidated Total Debt” and inserting
the following new definition of “Consolidated Total Debt” in its place and stead:

 

““Consolidated Total
Debt” means:

 

		(i)	only for the purposes of calculating the Consolidated Leverage Ratio when used in determining the
LIBOR Margin and the Base Rate Margin for Term Loans, without duplication, as at any date of determination, the sum of (a) the
aggregate stated balance sheet amount of all Indebtedness of Holdings and its Subsidiaries, determined on a consolidated basis
in accordance with GAAP, plus (b) the Commercial Letter of Credit Usage plus (c) the excess of Standby Letter
of Credit Usage over $4,000,000.00, minus (d) without duplication, the fair market value of unrestricted and unencumbered
cash, Cash Equivalents and marketable securities of Holdings and its Subsidiaries as shown on said balance sheet; and

    	 

    	 

    
 

 

		(ii)	for all other purposes, without duplication, as at any date of determination, the sum of (a) the
aggregate stated balance sheet amount of all Indebtedness of Holdings and its Subsidiaries, determined on a consolidated basis
in accordance with GAAP, plus (b) the Commercial Letter of Credit Usage plus (c) the Standby Letter of Credit
Usage.”

 

(iii)        Section 1.1 of the
Credit Agreement is hereby amended and modified by deleting the existing definition of “Obligations” and inserting
the following new definition of “Obligations” in its place and stead:

 

““Obligations”
means (i) all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising under any
Loan Document, any Lender Swap Agreement, or otherwise with respect to any Loan, Letter of Credit, or Lender Swap Agreement, including,
without limitation, all principal, interest, reimbursements for amounts drawn under Letters of Credit, fees, costs, expenses, and
indemnification amounts, (ii) for (a) all purposes under any of the Collateral Documents, (b) the purposes of the definitions of
“Collateral”, “Collateral Documents”, and “Permitted Encumbrances” hereunder, and (c) the purposes
of Sections 2.4D, 7.1(i), 10.2, 10.4, and 10.11 hereunder, all obligations arising under Secured Cash Management Agreements,
and (iii) all costs and expenses incurred in connection with enforcement and collection of any of the foregoing, including,
without limitation, the fees, charges and disbursements of counsel, in each case whether direct or indirect (including those acquired
by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees
that accrue after the commencement by or against any Loan Party or any Affiliate thereof pursuant to any proceeding under any Debtor
Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims
in such proceeding.”

 

(iv)        The following new definitions
are hereby added to Section 1.1 of the Credit Agreement:

 

“Cash Management Agreement”
means any agreement that is not prohibited by the terms hereof to provide treasury or cash management services, including deposit
accounts, overnight draft, credit cards, debit cards, p-cards (including purchasing cards and commercial cards), funds transfer,
automated clearinghouse, zero balance accounts, returned check concentration, controlled disbursement, lockbox, account reconciliation
and reporting and trade finance services, including, without limitation, foreign exchange, supply chain finance and discounting
of trade payables, and other cash management services.

 

“Cash Management Bank”
means any Person in its capacity as a party to a Cash Management Agreement that, (i) at the time it enters into a Cash Management
Agreement with a Loan Party, is a Lender or an Affiliate of a Lender, or (ii) at the time it (or its Affiliate) becomes a
Lender, is a party to a Cash Management Agreement with a Loan Party, in each case in its capacity as a party to such Cash Management
Agreement (even if such Person ceases to be a Lender or such Person’s Affiliate ceased to be a Lender); provided,
however, that for any of the foregoing to be included as a “Secured Cash Management Agreement” on any date of
determination by the Administrative Agent, the applicable Cash Management Bank (other than the Administrative Agent or an Affiliate
of the Administrative Agent) must have delivered to the Administrative Agent written notice of said Cash Management Bank’s
entry into a Cash Management Agreement prior to such date of determination.

    	 

    	 

    
 

 

“L/C Expiration Date”
means the day that is 30 days prior to the Revolving Loan Commitment Termination Date (or, if such day is not a Business Day, the
next preceding Business Day).

 

“Secured Cash Management
Agreement” means any Cash Management Agreement between any Loan Party and any of its Subsidiaries and any Cash Management
Bank.

 

(v)        Section 2.4 D. of the
Credit Agreement is hereby amended and modified by deleting the existing clause (iv) contained therein and inserting the
following new clause (iv) in its place and stead:

 

“(iv)        fourth,
to the payment of all other Obligations, including Obligations of Loan Parties under (a) any Lender Swap Agreements in excess of
those described in subsection 2.4D(iii) above, and (b) any Secured Cash Management Agreements, in either case for the ratable
benefit of the holders thereof (subject in all cases to the provisions of subsection 2.4C(ii) above); and”

 

(vi)        Section 3.1 A. of the
Credit Agreement is hereby amended and modified by adding the following sentence at the end of Section 3.1 A.(iii) of the
Credit Agreement:

 

“Notwithstanding the foregoing
or any other term, condition, or provision of this Agreement to the contrary, the Issuing Lender shall be permitted to issue or
renew Standby Letters of Credit with an expiry date which exceeds the L/C Expiration Date by a period of up to one year if either
(x) the Borrower Cash Collateralizes said Standby Letter(s) of Credit, or (y) the Requisite Class Lenders for Lenders holding Revolving
Loan Exposure shall have approved such issuance or renewal in writing.”

 

(vii)        Section 7.5 of the
Credit Agreement is hereby amended and modified by deleting the existing reference contained in Section 7.5(ii)(b) of the
Credit Agreement to a maximum Consolidated Leverage Ratio not to exceed “3.5 -to- 1.0” and inserting a new reference
to a reduced maximum Consolidated Leverage Ratio not to exceed “3.25 -to- 1.0” in its place and stead.

 

(viii)        Section 7.6 B. of
the Credit Agreement is hereby amended and modified by deleting the existing reference contained therein to a maximum permitted
Consolidated Leverage Ratio of “4.0 -to- 1.0” and inserting a new reference to a reduced maximum permitted Consolidated
Leverage Ratio of “3.25 -to- 1.0” in its place and stead.

 

(ix)        Section 10.6 of the
Credit Agreement is hereby amended and modified by deleting the existing introductory provision of said Section 10.6 in
its entirety and inserting the following new introductory provision in its place and stead:

 

“No amendment, modification,
termination or waiver of any provision of this Agreement, the Notes or any of the other Loan Documents,
and no consent to any departure by Company or Holdings therefrom, shall in any event be effective without the written concurrence
of the Requisite Lenders; provided that (I) the waiver of any condition set forth in Section 4.2 as to any Revolving
Loans shall not require the written concurrence of the Requisite Lenders but shall, instead, require the written concurrence of
the Requisite Class Lenders for Lenders holding Revolving Loan Exposure and (II) no such amendment, modification, termination,
waiver or consent shall, without the consent of:”

 

(x)        The existing Schedule 2.2
of the Credit Agreement is hereby deleted in its entirety, and the new Schedule 2.2 which is attached to this Sixth Amendment
as Exhibit “A” is hereby inserted in its place and stead.

    	 

    	 

    
 

 

(xi)        Any and all references in the
Credit Agreement to “Ares” or to “Ares Corporate Opportunities Fund, L.P.” and its Affiliates, including,
without limitation, the definition of “Ares”, the references to “Ares or its Affiliates” in the definition
of “Change in Control”, and the references to Ares and its Affiliates as Eligible Assignees, are hereby deleted in
their entirety and are, as of the date hereof, no longer of any force or effect.

 

4.        North
Carolina Property No Longer Secures Revolving Credit Loan Facility. Notwithstanding
any term, condition, or provision of the Credit Agreement, any Mortgage (including, without limitation, that certain Deed of Trust,
Security Agreement, Assignment of Rents and Leases and Fixture Filing (North Carolina) dated June 15, 2007 and recorded on June
18, 2007 in Book 7819, Page 0069 in the Office of the Register of Deeds of Cumberland County, North Carolina (hereinafter referred
to as the “North Carolina Deed of Trust”)), or any other Loan Document to the contrary, the parties hereto
acknowledge and agree that that certain real property located at 800 Technology Drive, Fayetteville, North Carolina shall hereafter
no longer secure the Borrower’s obligations under the Revolving Credit Loan Facility. It is expressly understood and agreed,
however, that the foregoing shall not be deemed to amend, modify, reduce, or in any other way limit the terms of any Loan Document
except as expressly set forth in this Paragraph 6, and the parties further acknowledge and agree that any “Obligations”
(as such term is defined in the North Carolina Deed of Trust) other than those relating to the Revolving Credit Loan Facility
shall continue to be secured by the North Carolina Deed of Trust in accordance with its terms.

 

5.        Amendments
to all Loan Documents. Any and all references in any Loan Document to the Credit Agreement and/or any of the other Loan
Documents shall be deemed to refer to the Credit Agreement or such other Loan Document, as amended and modified through this Sixth
Amendment.

 

6.        Further Agreements and
Representations. The Borrower and the Guarantors do hereby: (i) ratify, confirm and acknowledge that, as amended and modified
by this Sixth Amendment, the Credit Agreement, the Notes, the Guaranty, the Security Agreement, and all other Loan Documents continue
to be valid, binding and in full force and effect; (ii) acknowledge and agree that, as of the date hereof, none of the Borrower
or any of the Guarantors has any defense, set-off, counterclaim or challenge against the payment of any sums due and owing to the
Administrative Agent or any Lender or the enforcement of any of the terms of the Credit Agreement, the Guaranty, the Security Agreement,
and/or any of the other Loan Documents; (iii) acknowledge and agree that all representations and warranties of the Borrower and
the Guarantors contained in the Credit Agreement, the Guaranty, the Security Agreement, and the other Loan Documents are true,
accurate and correct in all material respects as of the date hereof as if made on and as of the date hereof, except to the extent
any such representation or warranty specifically relates to an earlier date or dates in which case such representation or warranty
remains true, accurate and correct in all material respects on and as of such date or dates, and that none of the corporate governing
documents of the Borrower or the Guarantors have been amended, modified, or supplemented in any manner prohibited by the Loan Documents
since the date of the execution and delivery of the Credit Agreement; and (iv) represent and warrant that the Borrower and the
Guarantors have taken all necessary action required by law and by their respective corporate governing documents to execute and
deliver this Sixth Amendment and that such execution and delivery constitutes the legal and validly binding action of such entities.

 

7.        No Novation. It
is the intention of the parties hereto that this Sixth Amendment shall not constitute a novation.

    	 

    	 

    
 

 

8.        Waiver, Release and Indemnification
by the Borrower and the Guarantors. To induce the Administrative Agent and the Lenders to enter into this Sixth Amendment,
the Borrower and the Guarantors, and any person or entity claiming by or through any or all of them, each waives and releases and
forever discharges the Administrative Agent and the Lenders and their respective officers, directors, shareholders, agents, parent
corporation, subsidiaries, affiliates, trustees, administrators, attorneys, predecessors, successors and assigns and the heirs,
executors, administrators, successors and assigns of any such person or entity, as releasees (hereinafter collectively referred
to as the “Releasees”) from any liability, damage (whether direct or indirect, consequential, special, exemplary,
or punitive), claim (including, without limitation, any claim for contribution or indemnity), loss or expense of any kind, in each
case whether now known or unknown, past or present, asserted or unasserted, contingent or liquidated, at law or in equity, that
it may have against any Releasee arising from the beginning of time to the date hereof arising out of or relating to the Loan Facilities.
The Borrower and the Guarantors each further agrees to indemnify and hold the Releasees harmless from any loss, damage, judgment,
liability or expense (including attorneys’ fees) suffered by or rendered against the Administrative Agent or any Lender on
account of any claims of third parties arising out of or relating to the Loan Facilities. The Borrower and the Guarantors each
further states that it has carefully read the foregoing release and indemnity, knows the contents thereof and grants the same as
its own free act and deed.

 

9.        Status of Parties.
The relationship between the Administrative Agent and the Lenders, on the one hand, and the Borrower, on the other hand, is solely
that of administrative agent and lenders, on the one hand, and borrower, on the other hand. Neither the Administrative Agent nor
any of the Lenders has any fiduciary relationship with or duty to the Borrower and none is created by the Loan Documents. Nothing
contained in the Loan Documents, and no action taken or omitted pursuant to the Loan Documents, is intended or shall be construed
to create any partnership, joint venture, or association between the Borrower, on the one hand, and the Administrative Agent and
the Lenders, on the other hand, or in any way make the Administrative Agent or any Lender a co-principal with the Borrower. In
no event shall the Administrative Agent’s or any Lender’s rights and interests under the Loan Documents be construed
to give the Administrative Agent or any Lender the right to control, or be deemed to indicate that the Administrative Agent or
any Lender is in control of, the business, properties, management or operations of the Borrower.

 

10.        Fees, Costs, Expenses
and Expenditures. The Borrower shall pay the Administrative Agent’s and the Lenders’ reasonable costs and expenses
in connection with this Sixth Amendment to the extent and in the manner provided in Section 10.2 of the Credit Agreement.

 

11.        No Waiver. Nothing
contained in this Sixth Amendment constitutes an agreement or obligation by the Administrative Agent or the Lenders to grant any
further amendments to any of the Loan Documents, as amended and modified hereby, and nothing contained herein constitutes a waiver
or release by the Administrative Agent or any Lender of any rights or remedies available to the Administrative Agent or any Lender
under the Loan Documents, as amended and modified hereby, at law or in equity.

 

12.        Inconsistencies.
To the extent of any inconsistency between the terms, conditions, and provisions of this Sixth Amendment and the terms, conditions,
and provisions of the Credit Agreement, the Notes, the Guaranty, the Security Agreement, and all other Loan Documents, the terms,
conditions, and provisions of this Sixth Amendment shall govern and control. All terms, conditions, and provisions of the Credit
Agreement, the Notes, the Guaranty, the Security Agreement, and all other Loan Documents not inconsistent herewith shall remain
in full force and effect and are hereby ratified and confirmed by each party hereto.

 

13.        Binding Effect; Governing
Law. This Sixth Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and/or assigns. This Sixth Amendment shall be governed by and construed in accordance with the laws of the State of New York.

 

14.        WAIVER OF JURY TRIAL.
EACH OF THE PARTIES TO THIS SIXTH AMENDMENT HEREBY AGREES TO WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS SIXTH AMENDMENT OR ANY DEALINGS BETWEEN
THEM RELATING TO THE SUBJECT MATTER HEREIN (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS SIXTH AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS PARAGRAPH
14.

    	 

    	 

    
 

 

15.        Headings. The
headings of the Articles, Sections, paragraphs and clauses of this Sixth Amendment are inserted for convenience only and shall
not be deemed to constitute a part of this Sixth Amendment.

 

16.        Counterparts.
This Sixth Amendment may be executed in any number of counterparts, each of which, when taken together, shall be deemed one and
the same instrument.

 

 

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IN WITNESS WHEREOF,
the Administrative Agent, the Lenders, the Borrower, and the Guarantors have duly executed and delivered this Sixth Amendment,
all as of the day and year first written above.

 

BORROWER:

 

	ATTEST:	 	MAIDENFORM, INC., a New York corporation
	 	 	 	 	 	 
	 	 	 	 	 	 
	By:	/s/ Erica Finkelson	 	By:	/s/ Christopher Vieth	 
	 	Name: Erica Finkelson	 	Name: Christopher Vieth	 
	 	Title: Assistant General Counsel	 	Title: Chief Financial Officer	 

 

 

	 	GUARANTORS:
	 	 
	ATTEST:	MAIDENFORM BRANDS, INC., a Delaware corporation
	 	MAIDENFORM INTERNATIONAL, LTD., a New York corporation
	 	MF RETAIL, INC., a Delaware corporation
	 	ELIZABETH NEEDLE CRAFT, INC., a New York corporation
	 	NICHOLAS NEEDLECRAFT, INC., a New York corporation
	 	CRESCENT INDUSTRIES, INC., a New York corporation
	 	MAIDENFORM (INDONESIA) LIMITED, a Delaware corporation
	 	
        MAIDENFORM (BANGLADESH) LIMITED,
        a Delaware corporation

         

 

 

	By:	/s/ Erica Finkelson	 	By:	/s/ Nanci Prado	 
	 	Name: Erica Finkelson	 	Name: Nanci Prado	 
	 	Title: Assistant General Counsel	 	Title: Secretary	 

 

 

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	 	ADMINISTRATIVE AGENT:	 
	 	 	 	 
	 	BANK OF AMERICA, N.A.	 
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Angela Larkin	 
	 	Name: Angela Larkin	 
	 	Title: Assistant Vice President	 
	 	 	 	 
	 	 	 	 
	 	LENDERS:	 
	 	 	 	 
	 	BANK OF AMERICA, N.A., as a Lender, Issuing Lender, and Swing Line Lender
	 	 	 	 
	 	 	 	 
	 	By:	/s/ William T. Franey	 
	 	William T. Franey	 
	 	Senior Vice President	 
	 	 	 	 
	 	 	 	 
	 	CAISSE DE DÉPÔT ET
	 	PLACEMENT DU QUÉBEC, as a Lender
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Jean-Pierre Jetté	 
	 	Name: Jean-Pierre Jetté
	 	Title: Senior Portfolio Manager
	 	 	 	 
	 	By:	/s/ James B. McMullan	 
	 	Name: James B. McMullan	 
	 	Title: Senior Vice President	 
	 	 	 	 
	 	 	 	 
	 	WELLS FARGO BANK, N.A., as a Lender
	 	 	 	 
	 	 	 	 
	 	By:	/s/ Gary W. Wessel	 
	 	Name: Gary W. Wessel
	 	Title: Senior Vice Preside

 

 

 

[END
OF SIGNATURES]

    	 

    	 

    

EXHIBIT
“a”

 

ATTACHED
TO AND MADE A PART OF THAT CERTAIN SIXTH AMENDMENT AND MODIFICATION AGREEMENT EXECUTED BY AND AMONG MAIDENFORM, INC. ET
AL, BANK OF AMERICA, N.A., CAISSE DE DEPOT ET PLACEMENT DU QUEBEC, AND
WELLS FARGO BANK, N.A., AS LENDERS, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT,
DATED MARCH 28, 2012

 

Pricing
Grid

 

Applicable Margins for the Revolving
Credit Loan Facility

 

	
         

         
	Consolidated 

Leverage Ratio	LIBOR Margin	
        Base Rate

        Margin

         
	
        Commitment Fee

         
	
        SBLC Fee/

        Comm’l L/C Fee
	Swing Line Loan Margin
	1	< 0.50:1	100.0 bps	-125.0 bps	20.0 bps	100.0 bps	-15.0 bps
	2	> 0.50 but < 1.00:1	125.0 bps	-100.0 bps	20.0 bps	125.0 bps	-15.0 bps
	3	> 1.00 but < 1.50:1	137.5 bps	-87.5 bps	25.0 bps	137.5 bps	-17.5 bps
	4	> 1.50 but < 2.00:1	150.0 bps	-75.0 bps	30.0 bps	150.0 bps	-20.0 bps
	5	> 2.00 but < 2.50:1	175.0 bps	-37.5 bps	35.0 bps	175.0 bps	-10.0 bps
	6	> 2.50 but < 3.25:1	200.0 bps	-25.0 bps	40.0 bps	200.0 bps	0.0 bps
	 	> 3.25:1	200.0 bps	-25.0 bps	40.0 bps	200.0 bps	40.0 bps

 

 

Applicable Margin for the Term Loan
Facility

 

	
         

         
	
        Consolidated Leverage

        Ratio
	LIBOR Margin	
        Base Rate

        Margin

         

	1	< 1.00:1	100.0 bps	0 bps
	2	> 1.00 but < 1.50:1	112.5 bps	12.5 bps
	3	> 1.50 but < 2.00:1	125.0 bps	25.0 bps
	4	> 2.00 but < 2.50:1	137.5 bps	37.5 bps
	5	> 2.50 but < 3.00:1	150.0 bps	50.0 bps
	6	> 3.00	200.0 bps	100.0 bps

 

    	 

    	 

    

SCHEDULE
“a”

 

ATTACHED
TO AND MADE A PART OF THAT CERTAIN SIXTH AMENDMENT AND MODIFICATION AGREEMENT EXECUTED BY AND AMONG MAIDENFORM, INC. ET
AL, BANK OF AMERICA, N.A., CAISSE DE DEPOT ET PLACEMENT DU QUEBEC, AND
WELLS FARGO BANK, N.A., AS LENDERS, AND BANK OF AMERICA, N.A., AS ADMINISTRATIVE AGENT,
DATED MARCH 28, 2012

 

LETTERS
OF CREDIT

 

	LC No.	Beneficiary	Amount	Iss.	Exp. Cur
	68020190	UTICA MUTUAL INSURAN	USD$375,000.00	8/16/07	2/16/13
	68020194	THE TRAVELERS INDEMN	USD$150,000.00	8/16/07	12/31/12
	68024565	BANK OF IRELAND	USD$150,000.00	4/17/08	4/15/12* * * Certain information in this agreement
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions.

 

FEASIBILITY AND OPTION AGREEMENT

 

THIS FEASIBILITY
AND OPTION AGREEMENT (the “Agreement”) is made and entered into as of June 20, 2007 by and
between LIPOCINE, INC., a Delaware corporation having its principal place of business at 675 Arapeen Drive, Suite 202, Salt
Lake City, UT 84108 (“Lipocine”), and KRELE PHARMACEUTICALS, INC., a Delaware corporation
having its principal place of business at 1349 Lexington Avenue, Suite 2C, New York, NY 10128 (“Krele”).
Lipocine and Krele may be referred to herein individually as a “Party”, or collectively as the
“Parties”.

 

		1.	OVERVIEW

 

1.1       This
Agreement provides for: (a) a feasibility and phase I study to be conducted by Lipocine with Krele funding, to study the feasibility
of oral delivery of cyclobenzoprine (the “Product”) using Lipocine’s delivery technology (the “Feasibility
Study”), and (b) the grant to Krele of an exclusive option to negotiate and enter into an exclusive license under
the applicable Lipocine technology and intellectual property to develop and commercialize the Product upon payment of $[* *
* ] towards the cost of the Feasibility Study. The Lipocine technology that will be used in the Feasibility Study and available
under such option includes Lipocine's Lip'ralTM technology for improving absorption of poorly water-soluble compounds.

 

		2.	FEASIBILITY PROGRAM

 

2.1       Feasibility
Program. Lipocine shall conduct a Feasibility Study to assess the feasibility of improved oral delivery of the Product
for Krele in accordance with the Feasibility Study protocol attached to this Agreement as Exhibit I and incorporated herein
(the “Protocol”). Lipocine shall conduct the Feasibility Study exclusively for Krele in a diligent, professional
and workmanlike manner. The cost and timelines for conducting the Feasibility Study are as specified in the Protocol. Upon the
completion of the Feasibility Study, Lipocine shall deliver the final report as contemplated by the Protocol (the “Final
Report”). Krele will promptly review the results of the Feasibility Study as set forth in the Final Report. If Krele
determines that it desires to proceed with its option to license, Krele will so notify Lipocine in writing no later than thirty
(30) days after receipt of the Final Report).

 

		3.	OPTION FOR EXCLUSIVE LICENSE

 

   3.1          Option
to License.

 

(a)       Lipocine
hereby grants to Krele the exclusive option (the “Option”) to obtain an exclusive, worldwide license
under the Lipocine Intellectual Property (as defined below) for the further development and commercialization of the Product, on
the terms and conditions set forth in this Section 3. Krele may elect to exercise the Option by providing Lipocine written notice
of such election no later than thirty (30) days after receipt of the Final Report.

 

    	1

    	 

    

 

(b)       If
Krele exercises the Option, then the Parties will meet promptly thereafter and negotiate in good faith a license agreement that
grants Krele or an affiliate the exclusive, worldwide license and rights under the Lipocine Intellectual Property to further develop,
make, have made, offer for sale, sell, import and use the Product, which license agreement shall be on the terms set forth below
and shall contain such other commercially reasonable terms as are customary in the industry for similar license agreements.

 

(c)       During
the term of the Feasibility Study and the Option Period (as defined in Section 3.1(d) below), Lipocine agrees to make available
to Krele all data, know-how and information related to the Product and Lipocine Intellectual Property that is in Lipocine’s
possession or control and that is reasonably necessary or useful to Krele in order for Krele to exercise its Option and determine
an appropriate regulatory strategy for the Product.

 

(d)       The
Parties understand and agree that if, despite the Parties’ good faith negotiations, the Parties are not able to reach final
agreement on a definitive license agreement on the terms provided herein within sixty (60) days after commencing such negotiations
(or such longer period as agreed to by the Parties) (the “Option Period”), neither Party will be obligated
to proceed further with such negotiations.

 

3.2          Scope
of Exclusive License.

 

(a)       The
license rights covered by the Option will be an exclusive, worldwide license, including rights to sublicense, under the Lipocine
Intellectual Property solely to develop, make, have made, offer for sale, sell, import and use the Product. Under the terms of
such license, Krele, its affiliates, and/or its sublicensees will own exclusively all data, regulatory filings and regulatory approvals
covering the Product. For purposes of this Agreement, “Lipocine Intellectual Property” means the patents
and know-how rights owned or otherwise controlled by Lipocine that claim or cover, or directly relate to, the Lipocine oral delivery
technology that is, or may be, used in the Product.

 

(b)       During
the term of the license agreement, in no event shall Lipocine license, transfer or sell the Lipocine Intellectual Property to a
third party for the development, manufacture, use, sale or commercialization of cyclobenzaprine products.

 

(c)       If
development of the formulation selected by Krele reveals that the formulation is not optimal, in Krele’s judgment, Krele
has the option to have Lipocine redevelop one of the formulations from the Feasibility Study that Krele did not initially select
with reimbursement of reasonably incurred costs to Lipocine.

 

    	2

    	 

    

 

* * * Certain information in this agreement
has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with
respect to the omitted portions.

 

3.3       Payments
for Exclusive License. The Parties understand and agree that the payment provisions provided in this Section 3.3 relate to
all Products based on cyclobenzaprine. For the avoidance of doubt, the milestone payments will be paid only once for the first
Product that is bioequivalent to cyclobenzaprine 5 mg. Krele contemplates developing at least four Products that are bioequivalent
to cyclobenzaprine 5 mg: for muscle spasm, sleep, generalized anxiety and fibromyalgia, and no additional milestones will be paid
for such Products. If Krele develops Products that are bioequivalent to other products (for, example, a product that is bioequivalent
to cyclobenzaprine 10 mg), such Products will be considered additional Products and Krele will pay [* * * ]%) of the milestones
set forth in Section 3.3(d) below for the second and third additional Products only.

 

(a)       License
Fee. In the event the Parties enter into a license agreement for the Lipocine Intellectual Property as provided herein, Krele
will pay Lipocine a license fee of $300,000 within ten (10) days of the effective date of the license agreement.

 

(b)       Product
Development Reimbursement. If Krele decides to engage Lipocine to assist Krele in the further development of the Product, then
and only then, as provided in the license agreement, Krele will reimburse Lipocine for all of Lipocine's research and development
expenses relating to Lipocine's activities in support of development of the Product as directed by Krele. Such research and development
expenses will be more fully defined in a product development plan approved by Krele prior to Lipocine incurring any such costs.

 

(c)       Sublicense
Payments. Krele will pay to Lipocine payments equal to [* * * ]%) of any pre-commercialization or commercialization
consideration (e.g., upfront license fees, milestone payments, license maintenance fees, royalties, etc.) received by Krele from
a sublicensee, including any such pre-commercialization consideration received as a result of NDA (or equivalent) approval or Product
launch.

 

(d)       Milestones.
Krele will pay Lipocine milestone payments for the following events:

 

	 	1)	[* * * ]
	 	 	 
	 	2)	[* * * ]

 

In addition, as provided
in Section 3.3 above, if Krele develops Products that are bioequivalent to products other than cyclobenzaprine 5 mg, such Products
will be considered additional Products and Krele will pay [* * * ]%) of the milestones set forth above for the second and
third additional Products only.

 

(e)       Royalties.
Krele will pay to Lipocine royalties based on sales of Product by Krele and its affiliates, which royalties equate to [* * *
]% of net sales.

 

    	3

    	 

    

 

3.4       Understandings.
The Parties understand and agree that consummation of the above proposed licensing transaction is contingent upon execution and
delivery of the contemplated license agreement in a form satisfactory to both of the Parties, which will include the terms and
conditions of Section 3.3 above as well as additional terms and conditions customary for a transaction of this nature, including
without limitation, technology transfer provisions, customary representations and warranties, indemnification provisions and intellectual
property prosecution and enforcement provisions, and neither Party shall be bound (except to negotiate in good faith and as otherwise
provided herein) unless and until such license agreement is finally agreed upon and executed by both Parties.

 

		4.	INTELLECTUAL PROPERTY MATTERS

 

4.1       
Prior Intellectual Property. All patents, trade secrets, information, know-how, inventions, technology, data and other
intellectual property rights owned by either Party prior to the Effective Date shall remain the sole property of the respective
Party. For the avoidance of doubt, Krele shall retain all or its and its affiliates’ rights in patents, trade secrets, information,
know-how, inventions, technology, data and other intellectual property rights that relate to very low dose cyclobenzoprine (VLD-cyclo)
(the “Krele Intellectual Property”).

 

4.2       Developed
Intellectual Property. All patents, trade secrets, inventions, technology, and other intellectual property rights (collectively,
“Intellectual Property”) arising from the performance of the Feasibility Study shall be jointly
owned by Krele and Lipocine. Each of the Parties shall have the sole right to file patent applications related to their respective
Intellectual Property and the Parties shall mutually determine which Party shall file patent applications for jointly-owned Intellectual
Property. Each Party shall execute such assignments and other documents as the other Party may reasonably request to enable the
Parties to perfect assignments to the other Party of the Intellectual Property as provided herein and to protect the Intellectual
Property.

 

4.3       No
Implied or Express License. Unless and until Krele exercises the Option and the Parties enter into the license agreement contemplated
by such Option, Krele shall obtain no license or other rights under, and Lipocine grants no implied or express license to Krele
under, the Lipocine Intellectual Property for any use or purpose. In addition, Lipocine shall have no license or other rights under,
and Krele grants no implied or express license to Lipocine under, the Krele Intellectual Property for any use or purpose other
than performance of the Feasibility Study on behalf of Krele as contemplated by the Protocol and this Agreement.

 

4.4       Use
of Study Data and Name. Lipocine shall have the rights to use the data and results of the Feasibility Study (the “Study
Data”) for internal and marketing purposes (and not drug development), such as use of the Study Data in proposals,
presentations and similar materials supplied by Lipocine to its prospective partners or business partners for promotional or marketing
purposes only; provided, however, that Lipocine shall redact all references to Krele and Krele Intellectual Property and any confidential
or proprietary information from any Study Data supplied to the prospective customers or business partners of Lipocine and such
prospective customers and business partners will not be granted any rights or licenses (implied or express) in the Krele Intellectual
Property or Study Data. Upon execution of the license agreement, Krele shall have the right, but not any obligation, to use the
name “Lipocine” and “Lip’ral” on internal and marketing materials related to the Feasibility Study
and the results thereof, including any Products.

 

    	4

    	 

    

 

4.5       Ownership
of Study Data. Notwithstanding anything to the contract in Section 4.2, Krele shall own all work product, information and
data arising from the Feasibility Study regardless of whether the Option is exercised. 

 

		5.	TERM AND TERMINATION

 

5.1       Agreement
Term. Unless terminated earlier by either Party pursuant to this Section 3, this Agreement shall become effective upon the
Effective Date and shall terminate on the earlier of expiration of the Option. This Agreement may be extended by written agreement
signed by the Parties.

 

5.2       Termination
for Uncured Breach. If a Party breaches a material obligation, the other Party may give written notice to such breaching Party
specifying the breach and its intention to terminate this Agreement if such breach is not cured. If the breaching Party does not
cure the breach within sixty (60) days of receipt of such notice, the other Party may terminate the Agreement upon written notice
to the breaching Party.

 

5.3       Consequences
of Termination. Termination or expiration of this Agreement will not relieve either Party of any obligations under this Agreement
accrued prior to any such termination or expiration. The obligations of the Parties pursuant to Sections 4.1, 4.2, 4.3 and 6 shall
survive expiration or termination of this Agreement for the period set forth therein, and if no period is set forth, perpetually.

 

5.4       Early
Termination. Upon early termination of the Feasibility
Study, for reasons other than safety concerns of study subjects or other reasonable scientific or regulatory concerns, or for uncured
breach of the payment terms thereunder, the Option to license shall not survive.

 

		6.	CONFIDENTIALITY

 

6.1       Confidential
Treatment. All Information of a Party that is disclosed by such Party to the other Party pursuant to this Agreement and labeled
“confidential” or the equivalent (the “Confidential Information”) shall be maintained in
confidence by the recipient Party and its respective officers, employees, agents, assignees, and subcontractors for a period of
ten (10) years from the date of termination of the Agreement. During such period, recipient Party shall not publish or otherwise
disclose the Confidential Information of the disclosing Party to any other Party or entity and shall not use the Confidential Information
of the disclosing Party for purposes other than as expressly permitted in this Agreement, without the written consent of the other
Party.

 

6.2       Limited
Third Party Disclosure. Each Party may disclose the Confidential Information of the other Party to a third party only after
obtaining the prior written approval of the Party owning such Confidential Information for such disclosure and provided that each
such Third Party shall have agreed in writing to be bound by obligations of non-use and nondisclosure equivalent in all respects
to those assumed by the Parties hereunder.

 

    	5

    	 

    

 

6.3          Information
Excluded from Confidentiality Provision. The foregoing obligations of confidentiality and non-use shall not apply to materials
and information that the receiving Party can demonstrate:

 

(a)         are
or become publicly known or available through no fault or omission of the recipient;

 

(b)         are
learned or obtained by the recipient from a third party entitled to disclose or transfer such materials or information;

 

(c)         are
already known or possessed by the recipient before receipt or transfer from the disclosing Party, as shown by the recipient 's
prior written records; or

 

(d)         are
developed independently by an employee or consultant of the recipient with no knowledge of the Confidential Information
disclosed hereunder.

 

6.4       Other
Permitted Disclosure. Notwithstanding any other provision of this Agreement, a Party may disclose the Confidential Information
of the other Party to the limited extent that such disclosure:

 

		(a)	is in response to a valid
order of a court or other governmental body;
	 	 	 

		(b)	is required by law or regulation;

 

provided, however, that such Party shall
first have given reasonable prior notice to the other Party and shall have made a reasonable effort, or shall cooperate with the
other Party's efforts, as applicable, to obtain a protective order limiting the extent of such disclosure and requiring that the
Confidential Information so disclosed be used only for the purposes for which such order was issued or as required by such law
or regulation.

 

		7.	MISCELLANEOUS PROVISIONS

 

7.1       Execution
in Counterparts. This Agreement may be executed in counterparts, each of which counterparts, when so executed and delivered,
shall be deemed to be an original, and all of which counterparts, taken together, shall constitute one and the same instrument.

 

7.2       Entire
Agreement. This Agreement constitutes, on and as of the Effective Date, the entire agreement between the Parties with respect
to the subject matter hereof, and all prior understanding and agreements, whether written or oral, between the Parties with respect
to such subject matter are hereby superseded in their entireties.

 

7.3       Governing
Law. This Agreement shall in all respects be governed by, and construed and enforced in accordance with, the laws of the State
of New York without regard to its conflict of laws principles.

 

    	6

    	 

    

 

7.4       Relationship
of the Parties. The Parties to this Agreement are independent contractors and not joint venturers or partners. Neither Party
shall be deemed to be an agent of the other Party as a result of any transaction under or related to this Agreement nor shall in
any way pledge the other Party’s credit or incur any obligation on behalf of the other Party.

 

7.5       Waiver.
The failure of either Party to insist upon strict compliance with any of the terms, covenants, or conditions herein shall not
be deemed a waiver by such Party of such terms, covenants or conditions, nor shall any waiver or relinquishment of any right at
any one or more times be deemed a waiver or relinquishment of such right at any other times, nor shall any single or partial exercise
of any right or remedy hereunder preclude any other or a future exercise thereof or the exercise of any other right or remedy granted
hereby or by any related document or by law.

 

7.6       Severability.
The invalidity or unenforceability of any provision hereof shall in no way affect the validity or enforceability of any other provision.
Any provision declared invalid or unenforceable by a court of competent jurisdiction shall be deleted and the remaining terms and
conditions of this Agreement shall remain in full force and effect.

 

IN WITNESS WHEREOF,
the Parties hereto have caused this Agreement to be executed by their authorized representatives.

 

	LIPOCINE, INC.	 	KRELE PHARMACEUTICALS, INC.
	 	 	 
	By: 	/s/ GERALD T. SIMMONS	 	By:	/s/ SETH LEDERMAN
	Name: 	Gerald T. Simmons	 	Name: 	Seth Lederman
	 	 	 
	Title: 	Corporate Business Development Officer	 	Title: 	Chairman

 

    	7

    	 

    

 

Attachment A

 

Proposal for Feasibility Evaluation of

 

Improved Oral Delivery of Cyclobenzaprine

 

	 	March 30, 2007
	 	 
	 	Submitted By:
	 	 
	 	Lipocine, Inc.
	 	675 Arapeen Drive Suite 202
	 	Salt Lake City, Utah 84108
	 	 
	 	Submitted To:
	 	 
	 	Krele Pharmaceuticals, Inc.

 

    	8

    	 

    

 

Improved Oral Delivery of Cyclobenzaprine
- Feasibility Proposal

 

Background

 

Lipocine Inc. (Lipocine) has proprietary
technology, Lip’ralTM, for improved oral absorption of poorly water soluble drugs and elimination of food effects
on absorption. The technology has been validated in clinical and preclinical studies with several different poorly water soluble
drugs, and is protected by issued and pending patents.

  

Krele Pharmaceuticals (Krele) has contracted
Lipocine to conduct a feasibility evaluation for the improved oral delivery of Cyclobenzaprine, a muscle
relaxant. Cyclobenzaprine is currently sold under the brand name Flexeril® and
there are several generics. It is available as 5 mg, 7.5 mg and 10 mg tablets. 

 

The specific objectives of the feasibility
evaluation are:

 

		1.	Develop Lip’ralTM formulations of cyclobenzaprine at slightly lower strength than
the marketed product; select two formulations for a Phase I study.

 

		2.	Manufacture, test and release the lots under GMP. Conduct a Phase I clinical study to determine
whether the Lipocine formulations are bioequivalent to FlexerilÒ 5 mg
tablet.

 

The feasibility program involves pre-formulation,
formulation development and stability evaluation with the goal of selecting two formulations for a Phase I study. It also includes
manufacture, testing and release of clinical lots of the selected formulation and conducting a Phase I study to determine the pharmacokinetics
of the Lipocine formulations relative to FlexerilÒ.

 

The tasks, timelines
and cost of the feasibility program are presented in detail below.

 

    	9

    	 

    

 

Work Plan

 

	Salient
    Tasks	 	FTEs	 	Timeline
	Preformulation:

        §Develop
        analytical methods for assay/characterization of drug in different matrices (lipidic excipients, formulations etc.)

        §Determine
        drug solubility/compatibility in several lipidic components, and other excipients

        §Screen
        preliminary compositions for drug solubility/loading, and extent of drug solubilization upon dispersion in SGF
	 	0.17	 	6 weeks
	Formulation Development:

        §Optimize
        two (2) formulations to achieve target solubility enhancement, dosage form drug loading, release profile, etc.

        §Develop
        methods & confirm 1 month accelerated stability of formulations
	 	0.17	 	8 weeks
	TOTAL
    (Stage I)	 	0.34	 	16
    weeks

 

	Documentation,
        Process, Method Development:

        §Select
        two (2) formulations for clinical study

        §Specifications
        and STMs for raw materials, intermediates and finished products; develop cleaning method

        §Manufacture
        one trial lot to develop/confirm process, methods and specifications for finished product

        §Batch
        records for manufacture of clinical supplies

        §Protocol
        and CRO for Phase I study and bioanalysis
	 	0.25	 	3
    weeks
	Clinical
        Supplies, Stability:

        §Procure,
        test and release raw materials

        §Manufacture,
        test and release two clinical lots under GMP compliance

        §Stage
        and conduct ICH stability program on the clinical lots
	 	0.25	 	3 weeks
	Conduct Phase I Studies:

        §Select
        CROs

        §Coordinate
        insurance, IRB review, shipping supplies, etc.

        §Monitor
        study

        §Complete
        PK and statistical analysis

        §Draft
        and Final clinical study reports
	 	0.10

        All
        external costs will be passed through 
	 	16
    weeks
	TOTAL
    (Stage II)	 	0.60	 	22
    weeks

 

    	10

    	 

    

 

Cost & Payment Terms 

 

Based on Lipocine’s 2007 fully burdened
reimbursement rate of $280,000/FTE, the cost of Stage I of the feasibility program is $95,200. The payment terms for Stage I are
as follows:

  

50% upon signing of the agreement;

 

50% upon selection
of two formulations for a Phase I study.

 

The cost for Stage II of the feasibility
program is $168,000 (plus external costs) paid according to the following schedule:

 

50% upon Krele’s decision
to proceed with Stage II

 

25% upon IRB approval of the
Phase I study protocol

 

20% upon submission of the preliminary
pharmacokinetic data

 

5% upon completion of the final
clinical study report

 

All external costs (clinical study, liability
insurance premium, bioanalytical costs, travel for clinical study monitoring) and significant (>$500) material costs (HPLC columns,
raw materials etc.) will be passed through to Krele.

 

Lipocine will invoice Krele for the amount
due upon completion of the associated milestone. All invoices are payable net 30 days.

 

Lipocine Responsibilities

 

Lipocine will purchase cyclobenzaprine
API in order to complete the feasibility program.

 

Lipocine will develop/verify
analytical method(s) for assay of cyclobenzaprine in components and formulations.

 

Lipocine will conduct preformulation
and formulation development studies as per Stage A Work Plan.

 

At the conclusion of formulation
development phase, Lipocine and Krele will select two (2) formulations for clinical development.

 

Upon a go decision from Krele,
Lipocine will manufacture, test and release lots of the two (2) selected formulations for the Phase I study as per Work Plan.

 

Lipocine will develop the study
protocols and select CROs in consultation with Krele as per Work Plan.

 

Lipocine will conduct the Phase
I program as per Work Plan.

 

Lipocine will provide periodic
written project reports to Krele.

 

    	11

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