TherapeuticsMD, Inc. 10-Q





 


 


Exhibit
10.1


 


EXECUTION
VERSION


 


AMENDMENT
NO. 2

TO FINANCING AGREEMENT


 


AMENDMENT
NO. 2 TO FINANCING AGREEMENT, dated as of April 17, 2020 (this “Amendment”), to the Financing Agreement,
dated as of April 24, 2019 (as amended, restated, supplemented or otherwise modified from time to time, the “Financing
Agreement”), by and among THERAPEUTICSMD, INC., a Nevada corporation (“Company” or “Borrower”),
certain Subsidiaries of Borrower, as Guarantors, the Lenders from time to time party thereto, and TPG SPECIALTY LENDING, INC.,
a Delaware corporation (“TSL”), as administrative agent for the Lenders (in such capacity, together with its
successors and assigns in such capacity, the “Administrative Agent”).


 


WHEREAS,
the Loan Parties have requested that the Administrative Agent and the Lenders amend certain terms and conditions of the Financing
Agreement; and


 


WHEREAS,
the Administrative Agent and the Lenders are willing to amend such terms and conditions of the Financing Agreement on the terms
and conditions set forth herein.


 


NOW
THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as follows:


 


1.
   Definitions.
All terms used herein that are defined in the Financing Agreement and not otherwise defined herein shall have the meanings assigned
to them in the Financing Agreement.


 


2.
    Amendments.


 


(a)
         New Definitions. Section 1.01 of the Financing Agreement is hereby amended
by adding the following definitions, in appropriate alphabetical order:


 


(i)         ““Amendment
No. 2” means Amendment No. 2 to Financing Agreement, dated as of April 17, 2020, by and among the Loan Parties, the
Administrative Agent and the Lenders.”


 


(ii)        ““Amendment
No. 2 Effective Date” means the “Amendment Effective Date” as set forth in Amendment No. 2.”


 


(iii)       ““CARES
Act” means the Coronavirus Aid, Relief and Economic Security Act, as amended, and the related rules and regulations
promulgated thereunder.”


 


(iv)       ““CARES
Act Loan” means any loan or other financial accommodation under the Payroll Protection Program established pursuant
to the CARES Act under 15 U.S.C. 636(a)(36) (as added to the Small Business Act by Section 1102 of the CARES Act); provided
that (i) such Indebtedness is unsecured, (ii) the proceeds therefrom are used solely in a manner that is permitted by the
CARES Act and (iii) the Loan Parties have fully complied with and satisfied all eligibility requirements under the Payroll Protection
Program established pursuant to the CARES Act to borrow such Indebtedness.”


 






     


     


    

 


(v)        ““SBA”
means the U.S. Small Business Administration.”


 


(vi)       ““Small
Business Act” means the Small Business Act (15 U.S. Code Chapter 14A – Aid to Small Business).”


 


(b)
         Existing Definitions. The following definitions in Section 1.01 of the
Financing Agreement are hereby amended as follows:


 


(i)        The
definition of “Permitted Indebtedness” is hereby amended by deleting “and” at the end of clause (l), deleting
the “.” at the end of clause (m) and inserting “; and” at the end of such clause, and inserting a new
clause (n) to read as follows:


 


“(n) Indebtedness
under the CARES Act Loan in an aggregate principal amount not to exceed $5,980,902 outstanding at any time.”


 


(c)
         Article V (Affirmative Covenants). A new Section 5.14 is hereby
added to the Financing Agreement as follows:


 


“Section 5.14 CARES Act Loan. The Loan Parties shall:


 


(a)          Comply,
in all material respects, with the SBA’s terms and conditions applicable to the CARES Act Loan;


 


(b)         use
the proceeds of the CARES Act Loans solely for “allowable uses” of proceeds of an SBA PPP Loan as described in Section
1102 of the CARES Act and solely to the extent such uses permit all of the CARES Act Loan to be eligible for forgiveness;


 


(c)          promptly
(and in any event within five (5) Business Days) upon receipt or delivery thereof, as applicable, provide copies of all material
documents, applications and correspondence with any applicable lender or any applicable Governmental Authority received or delivered
relating to the CARES Act Loan, including with respect to loan forgiveness; and


 


(d)          promptly
apply for forgiveness of the CARES Act Loan and submit all documents required to obtain forgiveness or other relief of the CARES
Act Loan by all deadlines required by the CARES Act (and provide documentation and status of such forgiveness to the Administrative
Agent upon the Administrative Agent’s reasonable request).”


 


3.
 Conditions
to Effectiveness. This Amendment shall become effective only upon satisfaction in full, in a manner satisfactory to the Administrative
Agent, of the following conditions precedent (the first date upon which all such conditions shall have been satisfied being hereinafter
referred to as the “Amendment Effective Date”):


 


(a)
         Payment of Fees, Etc. The Borrowers shall have paid on or before the Amendment
Effective Date all fees, costs, expenses and taxes then payable, if any, pursuant to Section 2.7 or 10.2 of the
Financing Agreement.


 






    - 2 -


     


    

 


(b)
        Representations and Warranties. The representations and warranties contained
in this Amendment and in Article IV of the Financing Agreement and in each other Loan Document shall be true and correct
in all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties
that already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof,
which representations and warranties shall be true and correct in all respects subject to such qualification) on and as the Amendment
Effective Date to the same extent as though made on and as of that date, except to the extent such representations and warranties
specifically relate to an earlier date, in which case such representations and warranties shall have been true and correct in
all material respects (except that such materiality qualifier shall not be applicable to any representations or warranties that
already are qualified or modified as to “materiality” or “Material Adverse Effect” in the text thereof,
which representations and warranties shall be true and correct in all respects subject to such qualification) on and as of such
earlier date.


 


(c)
         No Default; Event of Default. No Default or Event of Default shall have occurred
and be continuing on the Amendment Effective Date or result from this Amendment becoming effective in accordance with its terms.


 


(d)
         Delivery of Documents. The Administrative Agent shall have received on or before
the Amendment Effective Date the following, each in form and substance satisfactory to the Administrative Agent and, unless indicated
otherwise, dated the Amendment Effective Date:


 


(i)        this
Amendment, duly executed by the Loan Parties, the Administrative Agent and the Lenders; and


 


(ii)       duly
executed copies of all documents evidencing the CARES Act Loan.


 


(e)
         Material Adverse Effect. The Administrative Agent shall have determined, in its
reasonable judgment, that no event or development shall have occurred since December 31, 2018, which could reasonably be expected
to have a Material Adverse Effect.


 


(f)
          Liens; Priority. The Administrative Agent shall be satisfied that the Administrative
Agent has been granted, and holds, for the benefit of the Administrative Agent and the Lenders, a perfected, first priority Lien
on and security interest in all of the Collateral, subject only to Permitted Liens, to the extent such Liens and security interests
are required pursuant to the Loan Documents to be granted or perfected on or before the Amendment Effective Date.


 


(g)
         Approvals. All consents, authorizations and approvals of, and filings and registrations
with, and all other actions in respect of, any Governmental Authority or other Person required in connection with any Loan Document
or the transactions contemplated thereby or the conduct of the Loan Parties’ business shall have been obtained or made and
shall be in full force and effect. There shall exist no claim, action, suit, investigation, litigation or proceeding (including,
without limitation, shareholder or derivative litigation) pending or, to the knowledge of any Loan Party, threatened in any court
or before any arbitrator or Governmental Authority which (i) relates to the Loan Documents or the transactions contemplated thereby
or (ii) could reasonably be expected to have a Material Adverse Effect.


 






    - 3 -


     


    

 


4.
     Continued
Effectiveness of the Financing Agreement and Other Loan Documents. Each Loan Party hereby (a) acknowledges and consents to
this Amendment, (b) confirms and agrees that the Financing Agreement and each other Loan Document to which it is a party is, and
shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, except that on and after
the Amendment Effective Date, all references in any such Loan Document to “the Financing Agreement”, the “Agreement”,
“thereto”, “thereof”, “thereunder” or words of like import referring to the Financing Agreement
shall mean the Financing Agreement as amended by this Amendment, and (c) confirms and agrees that, to the extent that any such
Loan Document purports to assign or pledge to the Administrative Agent, for the benefit of the Administrative Agent and the Lenders,
or to grant to the Administrative Agent, for the benefit of the Administrative Agent and the Lenders, a security interest in or
Lien on any Collateral as security for the Obligations of the Loan Parties from time to time existing in respect of the Financing
Agreement (as amended hereby) and the other Loan Documents, such pledge, assignment and/or grant of the security interest or Lien
is hereby ratified and confirmed in all respects. This Amendment does not and shall not affect any of the obligations of the Loan
Parties, other than as expressly provided herein, including, without limitation, the Loan Parties’ obligations to repay
the Loans in accordance with the terms of Financing Agreement or the obligations of the Loan Parties under any Loan Document to
which they are a party, all of which obligations shall remain in full force and effect. Except as expressly provided herein, the
execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Administrative
Agent or any Lender under the Financing Agreement or any other Loan Document nor constitute a waiver of any provision of the Financing
Agreement or any other Loan Document.


 


5.
     No
Novation. Nothing herein contained shall be construed as a substitution or novation of the Obligations outstanding under the
Financing Agreement or instruments securing the same, which shall remain in full force and effect, except as modified hereby.


 


6.
     No
Representations by Administrative Agent or Lenders. Each Loan Party hereby acknowledges that it has not relied on any representation,
written or oral, express or implied, by Administrative Agent or any Lender, other than those expressly contained herein, in entering
into this Amendment.


 


7.
     Release.
Each Loan Party hereby acknowledges and agrees that: (a) neither it nor any of its Subsidiaries has any claim or cause of action
against Administrative Agent or any Lender (or any of the directors, officers, employees, agents, attorneys or consultants of
any of the foregoing) and (b) the Administrative Agent and the Lenders have heretofore properly performed and satisfied in a timely
manner all of their obligations to the Loan Parties, and all of their Subsidiaries and Affiliates. Notwithstanding the foregoing,
the Administrative Agent and the Lenders wish (and the Loan Parties agree) to eliminate any possibility that any past conditions,
acts, omissions, events or circumstances would impair or otherwise adversely affect any of their rights, interests, security and/or
remedies. Accordingly, for and in consideration of the agreements contained in this Amendment and other good and valuable consideration,
each Loan Party (for itself and its Subsidiaries and Affiliates and the successors, assigns, heirs and representatives of each
of the foregoing) (collectively, the “Releasors”) does hereby fully, finally, unconditionally and irrevocably
release, waive and forever discharge the Administrative Agent and the Lenders, together with their respective Affiliates and Related
Funds, and each of the directors, officers, employees, agents, attorneys and consultants of each of the foregoing (collectively,
the “Released Parties”), from any and all debts, claims, allegations, obligations, damages, costs, attorneys’
fees, suits, demands, liabilities, actions, proceedings and causes of action, in each case, whether known or unknown, contingent
or fixed, direct or indirect, and of whatever nature or description, and whether in law or in equity, under contract, tort, statute
or otherwise, which any Releasor has heretofore had or now or hereafter can, shall or may have against any Released Party by reason
of any act, omission or thing whatsoever done or omitted to be done, in each case, on or prior to the Amendment Effective Date
directly arising out of, connected with or related to this Amendment, the Financing Agreement or any other Loan Document, or any
act, event or transaction related or attendant thereto, or the agreements of Administrative Agent or any Lender contained therein,
or the possession, use, operation or control of any of the assets of any Loan Party, or the making of any Loans or other advances,
or the management of such Loans or other advances or the Collateral. Each Loan Party represents and warrants that it has no knowledge
of any claim by any Releasor against any Released Party or of any facts or acts or omissions of any Released Party which on the
date hereof would be the basis of a claim by any Releasor against any Released Party which would not be released hereby.


 






    - 4 -


     


    

 


8.
     Further
Assurances. The Loan Parties shall execute any and all further documents, agreements and instruments, and take all further
actions, as may be required under applicable law or as Administrative Agent may reasonably request, in order to effect the purposes
of this Amendment.


 


9.
     Miscellaneous.


 


(a)
        This Amendment may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which shall be deemed to be an original but all of which taken together shall constitute
one and the same agreement. Delivery of an executed counterpart of this Amendment by facsimile or electronic mail shall be equally
effective as delivery of an original executed counterpart of this Amendment.


 


(b)
         Section and paragraph headings herein are included for convenience of reference only
and shall not constitute a part of this Amendment for any other purpose.


 


(c)
         This Amendment shall be governed by, and construed in accordance with, the laws of the
State of New York.


 


(d)
         Each Loan Party hereby acknowledges and agrees that this Amendment constitutes a “Loan
Document” under the Financing Agreement. Accordingly, it shall be an immediate Event of Default under the Financing Agreement
if (i) any representation or warranty made by any Loan Party under or in connection with this Amendment shall have been incorrect
in any respect when made or deemed made, or (ii) any Loan Party shall fail to perform or observe any term, covenant or agreement
contained in this Amendment.


 






    - 5 -


     


    

 


(e)
         Any provision of this Amendment that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the
remaining portions hereof or affecting the validity or enforceability of such provision in any other jurisdiction.


 


[Remainder
of page intentionally left blank.]


 




    - 6 -


     


    

 


IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered as of the date set forth on the first
page hereof.


 


	 	BORROWER:
	 	 	 
	 	THERAPEUTICSMD, INC.
	 	 	 
	 	By:	/s/ Daniel Cartwright
	 	Name: Daniel Cartwright
	 	Title: Chief Financial Officer
	 	 	 
	 	GUARANTORS:
	 	 	 
	 	VITAMEDMD, LLC
	 	 	 
	 	By:	/s/ Daniel Cartwright
	 	Name: Daniel Cartwright
	 	Title: Chief Financial Officer
	 	 	 
	 	BOCAGREENMD, INC.
	 	 	 
	 	By:	/s/ Daniel Cartwright
	 	Name: Daniel Cartwright
	 	Title: Chief Financial Officer
	 	 	 
	 	VITACARE PRESCRIPTION SERVICES, INC.
	 	 	 
	 	By:	/s/ Daniel Cartwright
	 	Name: Daniel Cartwright
	 	Title: Chief Financial Officer


 




     


     


    

 


	 	TPG
    SPECIALTY LENDING, INC., as Administrative Agent and Lender
	 	 	 
	 	By:	/s/ Joshua Easterly
	 	 	Name: Joshua Easterly
	 	 	Title: CEO
	 	 	 
	 	TOP IV TALENTS, LLC, as Lender
	 	 	 
	 	By:	/s/ Joshua Peck
	 	 	Name: Joshua Peck
	 	 	Title: Vice President
	 	 	 
	 	TAO TALENTS, LLC, as Lender
	 	 	 
	 	By:	/s/ Joshua Peck
	 	 	Name: Joshua Peck
	 	 	Title: Vice President