Loan Repayment and Settlement Agreement between V.I. Technologies, Inc. and American National Red Cross (April 2003)

Summary

V.I. Technologies, Inc. (VITEX) and the American National Red Cross (ANRC) have agreed on a repayment plan for VITEX's $3,532,253 debt to ANRC. The agreement sets a three-year payment schedule with a 10% interest rate, starting with a 10% principal payment and followed by monthly installments. The payment terms may be adjusted if VITEX achieves certain financial milestones, such as raising funds through a rights offering or securing a major marketing partner. Full repayment will settle all obligations between the parties. Payments begin April 11, 2003, and end February 20, 2006.

EX-10.1 3 dex101.txt AGREEMENT WITH THE AMERICAN NATIONAL RED CROSS Exhibit 10.1 Certain confidential information contained in this Exhibit, marked by asterisks, was omitted and has been filed separately with the Secretary of the Commission pursuant to the Company's application requesting confidential treatment under Rule 24b-2 of the Securities Exchange Act of 1934. Agreement with American National Red Cross April 9, 2003 Mr. Christopher Lamb Chief Operating Officer Plasma Operations American National Red Cross 1300 Wilson Boulevard Rosslyn, VA ###-###-#### Dear Chris: Re: VITEX Obligations to the American National Red Cross V.I.Technologies ("VITEX") and the American National Red Cross (the "ANRC") acknowledge VITEX' obligation to pay ANRC the total of $3,532,253 as follows: Advances from ANRC $3,000,000 *********** ********** *********** ********** ---------- Total $3,532,253 ---------- VITEX and ANRC agree that this amount will be paid over a three-year term beginning with a principal payment of 10% of the outstanding obligation or $353,225.30 (three hundred fifty-three thousand, two hundred twenty-five dollars and thirty cents) on April 11, 2003. This payment will be followed by thirty-five level monthly installments of $104,804.06 (one hundred four thousand, eight hundred four dollars and six cents) representing the principal amount outstanding plus interest at 10% (ten percent) pursuant to the schedule attached hereto as Exhibit A. Payments will commence on April 11, 2003 and end on February 20, 2006. Payment of the amounts detailed in Exhibit A will constitute final settlement of the entire obligation due by VITEX to the ANRC. Further, Vitex may settle this obligation at any time by paying the outstanding principal balance. 21 This payment schedule will be amended if Vitex achieves either or both of the milestones described below. 1) If Vitex closes the Rights Offering currently underway with proceeds of subscription rights totaling $15 million or more, the first amortization payment due after closing the Rights Offering will be made in the amount of $200,000 (two hundred thousand dollars). The remaining payments due under the obligation will be adjusted to reflect the then outstanding principal balance and 10% interest over the remaining term. These payments will be in the amount of $101,492.60 (one hundred one thousand, four hundred ninety-two dollars and sixty cents) assuming that this milestone is achieved prior to the May 20, 2003 payment date. If it is achieved later, the payment schedule will be adjusted accordingly. 2) If Vitex closes an agreement with a marketing partner resulting in proceeds (including cash and the value of services or space, etc.) of $20 million or more, the first amortization payment due after closing the marketing agreement will be made in the amount of $250,000 (two hundred fifty thousand dollars) or 10% of the then outstanding principal balance, whichever is greater. The remaining payments due under the obligation will be adjusted to reflect the then outstanding principal balance and 10% interest over the remaining term. For example, these payments would be in the amount of $95,116.00 (ninety five thousand one hundred sixteen dollars) if the milestone is achieved between November 20 and December 20, 2003 as illustrated in Exhibit B. If it is achieved at another time, the payment schedule will be adjusted accordingly. Exhibit B provides an example of amortization of the obligation on the assumption that both milestones are achieved in the time periods indicated. If you are in agreement with the foregoing, please sign and date this Letter Agreement. Sincerely, Thomas T. Higgins Accepted and agreed to: V.I. Technologies, Inc. American National Red Cross By: /s/ Thomas T. Higgins By: /s/ Christopher Lamb --------------------- -------------------- Name: Thomas T. Higgins Name: Christopher Lamb Title: EVP, Operations & CFO Title: VP & COO, Plasma Services Date: 4/9/03 Date: 4/10/03 ------ ------- 22 Exhibit A V. I. Technologies, Inc. Amortization Schedule of Red Cross Loan April 11, 2003 Principal $3,532,253 Annual interest rate 10.00% Term 3 years Monthly payment $104,804.06 Start date April 11, 2003 First payment 10% of principal End date February 20, 2006 Payment Date Payment Interest Principal Balance - ------------ ------- -------- --------- ------- 4/11/2003 $ 353,225.30 $ - $ 353,225.30 $3,179,027.70 4/20/2003 104,804.06 17,661.27 87,142.80 3,091,884.91 5/20/2003 104,804.06 25,765.71 79,038.35 3,012,846.55 6/20/2003 104,804.06 25,107.05 79,697.01 2,933,149.54 7/20/2003 104,804.06 24,442.91 80,361.15 2,852,788.39 8/20/2003 104,804.06 23,773.24 81,030.83 2,771,757.57 9/20/2003 104,804.06 23,097.98 81,706.08 2,690,051.48 10/20/2003 104,804.06 22,417.10 82,386.97 2,607,664.52 11/20/2003 104,804.06 21,730.54 83,073.52 2,524,590.99 12/20/2003 104,804.06 21,038.26 83,765.80 2,440,825.19 1/20/2004 104,804.06 20,340.21 84,463.85 2,356,361.34 2/20/2004 104,804.06 19,636.34 85,167.72 2,271,193.62 3/20/2004 104,804.06 18,926.61 85,877.45 2,185,316.17 4/20/2004 104,804.06 18,210.97 86,593.09 2,098,723.08 5/20/2004 104,804.06 17,489.36 87,314.70 2,011,408.37 6/20/2004 104,804.06 16,761.74 88,042.33 1,923,366.05 7/20/2004 104,804.06 16,028.05 88,776.01 1,834,590.04 8/20/2004 104,804.06 15,288.25 89,515.81 1,745,074.22 9/20/2004 104,804.06 14,542.29 90,261.78 1,654,812.45 10/20/2004 104,804.06 13,790.10 91,013.96 1,563,798.49 11/20/2004 104,804.06 13,031.65 91,772.41 1,472,026.08 12/20/2004 104,804.06 12,266.88 92,537.18 1,379,488.90 1/20/2005 104,804.06 11,495.74 93,308.32 1,286,180.58 2/20/2005 104,804.06 10,718.17 94,085.89 1,192,094.69 3/20/2005 104,804.06 9,934.12 94,869.94 1,097,224.75 4/20/2005 104,804.06 9,143.54 95,660.52 1,001,564.23 5/20/2005 104,804.06 8,346.37 96,457.69 905,106.53 6/20/2005 104,804.06 7,542.55 97,261.51 807,845.03 7/20/2005 104,804.06 6,732.04 98,072.02 709,773.00 8/20/2005 104,804.06 5,914.78 98,889.29 610,883.72 9/20/2005 104,804.06 5,090.70 99,713.36 511,170.35 10/20/2005 104,804.06 4,259.75 100,544.31 410,626.04 11/20/2005 104,804.06 3,421.88 101,382.18 309,243.87 12/20/2005 104,804.06 2,577.03 102,227.03 207,016.83 1/20/2006 104,804.06 1,725.14 103,078.92 103,937.91 2/20/2006 104,804.06 866.15 103,937.91 (0.00) ------------- ----------- ------------- ------------- Total $4,021,367.48 $489,114.48 $3,532,253.00 $ 0.00 ============= =========== ============= ============= 23 Exhibit B V. I. Technologies, Inc. Amortization Schedule of Red Cross Loan April 11, 2003 Principal $3,532,253.00 Annual interest rate 10.00% Term 3 years First payment 10% of principal Start date April 11, 2003 First milestone Rights Offering = $200,000 End date February 20, 2006 Second milestone Marketing Partner = greater of 10% of outstanding balance or $250,000 Payment Date Payment Interest Principal Balance - ------------ ------- -------- --------- ------- 4/11/2003 $ 353,225.30 $ - $ 353,225.30 $3,179,027.70 4/20/2003 104,804.06 17,661.27 87,142.80 3,091,884.91 5/20/2003 200,000.00 (1) 25,765.71 174,234.29 2,917,650.61 6/20/2003 101,492.60 24,313.76 77,178.85 2,840,471.77 7/20/2003 101,492.60 23,670.60 77,822.00 2,762,649.76 8/20/2003 101,492.60 23,022.08 78,470.52 2,684,179.24 9/20/2003 101,492.60 22,368.16 79,124.44 2,605,054.80 10/20/2003 101,492.60 21,708.79 79,783.81 2,525,270.99 11/20/2003 101,492.60 21,043.92 80,448.68 2,444,822.31 12/20/2003 250,000.00 (2) 20,373.52 229,626.48 2,215,195.83 1/20/2004 95,116.00 18,459.97 76,656.03 2,138,539.80 2/20/2004 95,116.00 17,821.16 77,294.83 2,061,244.96 3/20/2004 95,116.00 17,177.04 77,938.96 1,983,306.01 4/20/2004 95,116.00 16,527.55 78,588.45 1,904,717.56 5/20/2004 95,116.00 15,872.65 79,243.35 1,825,474.21 6/20/2004 95,116.00 15,212.29 79,903.71 1,745,570.50 7/20/2004 95,116.00 14,546.42 80,569.58 1,665,000.92 8/20/2004 95,116.00 13,875.01 81,240.99 1,583,759.93 9/20/2004 95,116.00 13,198.00 81,918.00 1,501,841.94 10/20/2004 95,116.00 12,515.35 82,600.65 1,419,241.29 11/20/2004 95,116.00 11,827.01 83,288.99 1,335,952.30 12/20/2004 95,116.00 11,132.94 83,983.06 1,251,969.24 1/20/2005 95,116.00 10,433.08 84,682.92 1,167,286.32 2/20/2005 95,116.00 9,727.39 85,388.61 1,081,897.71 3/20/2005 95,116.00 9,015.81 86,100.18 995,797.53 4/20/2005 95,116.00 8,298.31 86,817.68 908,979.84 5/20/2005 95,116.00 7,574.83 87,541.17 821,438.68 6/20/2005 95,116.00 6,845.32 88,270.67 733,168.00 7/20/2005 95,116.00 6,109.73 89,006.26 644,161.74 8/20/2005 95,116.00 5,368.01 89,747.98 554,413.76 9/20/2005 95,116.00 4,620.11 90,495.88 463,917.87 10/20/2005 95,116.00 3,865.98 91,250.01 372,667.86 11/20/2005 95,116.00 3,105.57 92,010.43 280,657.43 12/20/2005 95,116.00 2,338.81 92,777.19 187,880.24 1/20/2006 95,116.00 1,565.67 93,550.33 94,329.91 2/20/2006 95,116.00 786.08 94,329.91 (0.00) ------------- ----------- ------------- ------------- Total $3,990,000.90 $457,747.90 $3,532,253.00 $ 0.00 ============= =========== ============= ============= 24