Exhibit 10.3


 





 


Execution Version


 


December 10, 2019


 


STRICTLY CONFIDENTIAL


 


Outlook Therapeutics, Inc.


7 Clarke Drive


Cranbury, New Jersey 08512


 


Attn: Lawrence A. Kenyon, President, Chief Executive Officer
and Chief Financial Officer


 


Dear Mr. Kenyon:


 


This letter agreement
(this “Agreement”) constitutes the agreement between Outlook Therapeutics, Inc. (the “Company”)
and H.C. Wainwright & Co., LLC (“Wainwright”), that Wainwright shall serve as the exclusive placement
agent or sole book-running underwriter in any offering of equity or equity-linked securities of the Company (the “Securities”)
(the “Offering”) during the Term (as hereinafter defined) of this Agreement. The terms of the Offering and the
Securities issued in connection therewith shall be mutually agreed upon by the Company and Wainwright and nothing herein implies
that Wainwright would have the power or authority to bind the Company and nothing herein implies that the Company shall have an
obligation to issue any Securities. It is understood that Wainwright’s assistance in the Offering will be subject to the
satisfactory completion of such investigation and inquiry into the affairs of the Company as Wainwright deems appropriate under
the circumstances and to the receipt of all internal approvals of Wainwright in connection with the transaction. The Company expressly
acknowledges and agrees that Wainwright’s involvement in the Offering is strictly on a reasonable best efforts basis (unless
an underwritten offering, in which case until such time as an Underwriting Agreement (as defined hereunder), if any, is executed
between the parties) and that the consummation of the Offering will be subject to, among other things, market conditions. The execution
of this Agreement does not constitute a commitment by Wainwright to purchase the Securities and does not ensure a successful Offering
of the Securities or the success of Wainwright with respect to securing any other financing on behalf of the Company. Only the
execution of an Underwriting Agreement (as defined hereunder), if any, will constitute a firm commitment by Wainwright to purchase
the Securities, subject to customary closing conditions. Wainwright may retain other brokers, dealers, agents or underwriters on
its behalf in connection with the Offering. For the avoidance of doubt, the Offering does not include any issuance of securities
(nor take into account any gross proceeds raised therefrom) (i) solely to BioLexis Pte. Ltd. or its affiliates (including
GMS Holdings or its affiliates), TPG or its affiliates, and/or Struengmann family and affiliates, in a non-agented or non-brokered
private placement, (ii) in connection with the Company’s outstanding senior secured notes originally issued December 2016
and currently held by Chicago Venture Partners and its affiliates, or (iii) pursuant to acquisitions, licensing or other strategic
transactions, provided that any such issuance shall only be to a person which is an operating company or an owner of an asset in
a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the
investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of
raising capital or to an entity whose primary business is investing in securities (collectively, the “Excluded Transactions”).


 


430 Park Avenue | New York,
New York 10022 | 212.356.0500 | www.hcwco.com





Member: FINRA/SIPC


 






     


     


    

 


A.          Compensation;
Reimbursement. At the closing of the Offering (the “Closing”), the Company shall compensate Wainwright as
follows:


 


1.     Cash
Fee. The Company shall pay to Wainwright a cash fee, or as to an underwritten Offering an underwriter discount, equal to 7.0%
of the aggregate gross proceeds raised in the Offering.


 


2.     Warrant
Coverage. The Company shall issue to Wainwright or its designees at the Closing, warrants (the “Wainwright Warrants”)
to purchase that number of shares of common stock of the Company equal to 7.0% of the aggregate number of shares of common stock
(or common stock equivalent, if applicable) placed in the Offering (and if the Offering includes a “greenshoe” or “additional
investment” component, such number of shares of common stock underlying such “greenshoe” or “additional
investment” component, with the Wainwright Warrants issuable upon the exercise of such component). If the Securities included
in the Offering are convertible, the Wainwright Warrants shall be determined by dividing the gross proceeds raised in the Offering
by the Offering Price (as defined hereunder). The Wainwright Warrants shall be in a customary form reasonably acceptable to Wainwright,
have a term of five (5) years and an exercise price equal to 125% of the offering price per share (or unit, if applicable)
in the Offering and if such offering price is not available, the market price of the common stock on the date the Offering is commenced
(such price, the “Offering Price”). If warrants are issued to investors in an Offering, the Wainwright Warrants
shall have the same terms as the warrants issued to investors in the applicable Offering, except that such Wainwright Warrants
shall have an exercise price equal to 125% of the Offering Price.


 


3.     Expense
Allowance. Out of the proceeds of the Closing, the Company also agrees to pay Wainwright (a) a management fee equal to
1.0% of the gross proceeds raised in each Offering; (b) $35,000 for non-accountable expenses and (c) up to $100,000 for
fees and expenses of legal counsel and other out-of-pocket expenses; plus the additional amount payable by the Company pursuant
to Paragraph D.3 hereunder and, if applicable, the costs associated with the use with the Company’s prior consent of a third-party
electronic road show service (such as NetRoadshow); provided, however, that such amount in no way limits or impairs the
indemnification and contribution provisions of this Agreement.


 


4.     Tail.
Wainwright shall be entitled to compensation under clauses (1) and (2) hereunder, calculated in the manner set forth
therein, with respect to any public or private offering or other financing or capital-raising transaction of any kind (“Tail
Financing”) to the extent that such financing or capital is provided to the Company by investors whom Wainwright had
contacted during the Term or introduced to the Company during the Term (the “Tail Investors”), if such Tail
Financing is consummated at any time within the 10-month period following the expiration or termination of this Agreement. For
the avoidance of doubt, an Excluded Transaction shall not be considered a Tail Financing.


 






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5.     Right
of First Refusal. If, from the date hereof until the 10-month anniversary following consummation of the Offering, the Company
or any of its subsidiaries decides to raise funds by means of a public offering or a private placement or any other capital-raising
financing of equity, equity-linked or debt securities using an underwriter or placement agent other than with respect to the Excluded
Transactions, Wainwright (or any affiliate designated by Wainwright) shall have the right to act as sole book-running manager,
sole underwriter or sole placement agent for such financing. If Wainwright or one of its affiliates decides to accept any such
engagement, the agreement governing such engagement will contain, among other things, provisions for customary fees for transactions
of similar size and nature and the provisions of this Agreement, including indemnification, which are appropriate to such a transaction..


 


B.          Term
and Termination of Engagement; Exclusivity. The term of Wainwright’s exclusive engagement will begin on the date hereof
and end five (5) months thereafter (the “Term”). Notwithstanding anything to the contrary contained herein,
the Company agrees that the provisions relating to the payment of fees, reimbursement of expenses, right of first refusal, tail,
indemnification and contribution, confidentiality, conflicts, independent contractor and waiver of the right to trial by jury will
survive any termination or expiration of this Agreement; provided, however, that upon the execution of an Underwriting Agreement
(as defined hereunder), if any, this Agreement shall terminate and no provisions of this Agreement shall survive and the respective
obligations of the parties shall be governed exclusively by the terms of such Underwriting Agreement. Notwithstanding anything
to the contrary contained herein, the Company has the right to terminate the Agreement for cause in compliance with FINRA Rule 5110(f)(2)(D)(ii).
The exercise of such right of termination for cause eliminates the Company’s obligations with respect to the provisions relating
to the tail fees and right of first refusal. Notwithstanding anything to the contrary contained in this Agreement, in the event
that the Offering pursuant to this Agreement shall not be carried out for any reason whatsoever during the Term, the Company shall
be obligated to pay to Wainwright its actual and accountable documented reasonable out-of-pocket expenses related to an Offering
(including the reasonable fees and disbursements of Wainwright’s legal counsel up to a maximum of $75,000) and, if applicable,
for electronic road show service used with the Company’s prior consent in connection with the Offering. During Wainwright’s
engagement hereunder: (i) the Company will not, and will not permit its representatives to, other than in coordination with
Wainwright, contact or solicit institutions, corporations or other entities or individuals as potential purchasers of the Securities
and (ii) the Company will not pursue any financing transaction that would be in lieu of the Offering. Furthermore, the Company
agrees that during Wainwright’s engagement hereunder, all inquiries, whether direct or indirect, from prospective investors
(other than the Company’s directors and/or officers or those parties excluded from the definition of “Offering”)
will be referred to Wainwright and will be deemed to have been contacted by Wainwright in connection with the Offering. Additionally,
except as set forth hereunder, the Company represents, warrants and covenants that no brokerage or finder’s fees or commissions
are or will be payable by the Company or any subsidiary of the Company to any broker, financial advisor or consultant, finder,
placement agent, investment banker, bank or other third-party with respect to the Offering.


 


C.          Information;
Reliance. The Company shall furnish, or cause to be furnished, to Wainwright all information requested by Wainwright for the
purpose of rendering services hereunder and conducting due diligence (all such information being the “Information”).
In addition, the Company agrees to make available to Wainwright upon request from time to time the officers, directors, accountants,
counsel and other advisors of the Company. The Company recognizes and confirms that Wainwright (a) will use and rely on the
Information, including any documents provided to investors in the Offering (the “Offering Documents”) which
shall include any Purchase Agreement (as defined hereunder), and on information available from generally recognized public sources
in performing the services contemplated by this Agreement without having independently verified the same; (b) does not assume
responsibility for the accuracy or completeness of the Offering Documents or the Information and such other information; and (c) will
not make an appraisal of any of the assets or liabilities of the Company. Upon reasonable request, the Company will meet with Wainwright
or its representatives to discuss all information relevant for disclosure in the Offering Documents and will cooperate in any investigation
undertaken by Wainwright thereof, including any document included or incorporated by reference therein. At the Closing, at the
request of Wainwright, the Company shall deliver or cause to be delivered such legal letters (including, without limitation, negative
assurance letters), opinions, comfort letters, officers’ and secretary certificates and good standing certificates, all in
form and substance satisfactory to Wainwright and its counsel as is customary for the Offering. Wainwright shall be a third party
beneficiary of any representations, warranties,


 






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D.          Related
Agreements. The Company shall enter into the following additional agreements, as applicable:


 


1.     Underwritten
Offering. If the Offering is an underwritten Offering, the Company and Wainwright shall enter into a customary underwriting
agreement in form and substance satisfactory to Wainwright and its counsel and the Company and its counsel (the “Underwriting
Agreement”).


 


2.     Best
Efforts Offering. If the Offering is on a best efforts basis, the sale of Securities to the investors in the Offering will
be evidenced by a purchase agreement (“Purchase Agreement”) between the Company and such investors in a form
reasonably satisfactory to the Company and Wainwright. Wainwright shall be a third party beneficiary with respect to the representations,
warranties covenants and closing conditions made by the Company in any Offering Documents, including representations, warranties,
covenants and closing conditions made to any investor in the Offering . Prior to the signing of any Purchase Agreement, officers
of the Company with responsibility for financial affairs will be available to answer inquiries from prospective investors.


 


3.     Escrow,
Settlement and Closing. If the Offering is not settled via delivery versus payment (“DVP”), the Company
and Wainwright may mutually agree to enter into an escrow agreement with a third party escrow agent pursuant to which Wainwright’s
compensation and expenses shall be paid from the gross proceeds of the Securities sold. If the Offering is settled in whole or
in part via DVP, Wainwright shall arrange for its clearing agent to provide the funds to facilitate such settlement. The Company
shall pay Wainwright closing costs, which shall also include the reimbursement of the out-of-pocket cost of the escrow agent or
clearing agent, as applicable, which closing costs shall not exceed $10,000.


 






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4.     FINRA
Amendments. Notwithstanding anything herein to the contrary, in the event that Wainwright determines that any of the terms
provided for hereunder shall not comply with a FINRA rule, including but not limited to FINRA Rule 5110, then the Company
shall agree to amend this Agreement (or include such revisions in the final Underwriting Agreement) in writing upon the request
of Wainwright to comply with any such rules; provided that any such amendments shall not provide for terms that are less favorable
to the Company than are reflected in this Agreement.


 


E.          Confidentiality.
In the event of the consummation or public announcement of the Offering, Wainwright shall have the right to disclose its participation
in such Offering at its cost, including, without limitation, of “tombstone” advertisements in financial and other newspapers
and journals.


 


F.          Indemnity.


 


1.     In
connection with the Company’s engagement of Wainwright hereunder, the Company hereby agrees to indemnify and hold harmless
Wainwright and its affiliates, and the respective controlling persons, directors, officers, members, shareholders, agents and employees
of any of the foregoing (collectively the “Indemnified Persons”), from and against any and all claims, actions,
suits, proceedings (including those of shareholders), damages, liabilities and expenses incurred by any of them (including the
reasonable fees and expenses of counsel), as incurred, whether or not the Company is a party thereto (collectively a “Claim”),
that are (A) related to or arise out of (i) any actions taken or omitted to be taken (including any untrue statements
made or any statements omitted to be made) by the Company, or (ii) any actions taken or omitted to be taken by any Indemnified
Person in connection with the Company’s engagement of Wainwright, or (B) otherwise relate to or arise out of Wainwright’s
activities on the Company’s behalf under Wainwright’s engagement, and the Company shall reimburse any Indemnified Person
for all expenses (including the reasonable fees and expenses of counsel) as incurred by such Indemnified Person in connection with
investigating, preparing or defending any such claim, action, suit or proceeding, whether or not in connection with pending or
threatened litigation in which any Indemnified Person is a party. The Company will not, however, be responsible for any Claim that
is finally judicially determined to have resulted from the gross negligence or willful misconduct of any person seeking indemnification
for such Claim. The Company further agrees that no Indemnified Person shall have any liability to the Company for or in connection
with the Company’s engagement of Wainwright except for any Claim incurred by the Company as a result of such Indemnified
Person’s gross negligence or willful misconduct.


 






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2.     The
Company further agrees that it will not, without the prior written consent of Wainwright, settle, compromise or consent to the
entry of any judgment in any pending or threatened Claim in respect of which indemnification may be sought hereunder (whether or
not any Indemnified Person is an actual or potential party to such Claim), unless such settlement, compromise or consent includes
an unconditional, irrevocable release of each Indemnified Person from any and all liability arising out of such Claim.


 


3.     Promptly
upon receipt by an Indemnified Person of notice of any complaint or the assertion or institution of any Claim with respect to which
indemnification is being sought hereunder, such Indemnified Person shall notify the Company in writing of such complaint or of
such assertion or institution but failure to so notify the Company shall not relieve the Company from any obligation it may have
hereunder, except and only to the extent such failure results in the forfeiture by the Company of substantial rights and defenses.
If the Company is requested by such Indemnified Person, the Company will assume the defense of such Claim, including the employment
of counsel for such Indemnified Person and the payment of the fees and expenses of such counsel, provided, however, that such counsel
shall be satisfactory to the Indemnified Person and provided further that if the legal counsel to such Indemnified Person reasonably
determines that the use of counsel chosen by the Company to represent the Indemnified Person would present such counsel with a
conflict of interest or if the defendant in, or target of, any such Claim, includes an Indemnified Person and the Company, and
legal counsel to such Indemnified Person reasonably concludes that there may be legal defenses available to it or other Indemnified
Persons different from or in addition to those available to the Company, such Indemnified Person will employ its own separate counsel
(including local counsel, if necessary) to represent or defend him, her or it in any such Claim and the Company shall pay the reasonable
fees and expenses of such counsel. If such Indemnified Person does not request that the Company assume the defense of such Claim,
such Indemnified Person will employ its own separate counsel (including local counsel, if necessary) to represent or defend him,
her or it in any such Claim and the Company shall pay the reasonable fees and expenses of such counsel. Notwithstanding anything
herein to the contrary, if the Company fails timely or diligently to defend, contest, or otherwise protect against any Claim, the
relevant Indemnified Person shall have the right, but not the obligation, to defend, contest, compromise, settle, assert crossclaims,
or counterclaims or otherwise protect against the same, and shall be fully indemnified by the Company therefor, including without
limitation, for the reasonable fees and expenses of its counsel and all amounts paid as a result of such Claim or the compromise
or settlement thereof. In addition, with respect to any Claim in which the Company assumes the defense, the Indemnified Person
shall have the right to participate in such Claim and to retain his, her or its own counsel therefor at his, her or its own expense.


 


4.     The
Company agrees that if any indemnity sought by an Indemnified Person hereunder is held by a court to be unavailable for any reason
then (whether or not Wainwright is the Indemnified Person), the Company and Wainwright shall contribute to the Claim for which
such indemnity is held unavailable in such proportion as is appropriate to reflect the relative benefits to the Company, on the
one hand, and Wainwright on the other, in connection with Wainwright’s engagement referred to above, subject to the limitation
that in no event shall the amount of Wainwright’s contribution to such Claim exceed the amount of fees actually received
by Wainwright from the Company pursuant to Wainwright’s engagement. The Company hereby agrees that the relative benefits
to the Company, on the one hand, and Wainwright on the other, with respect to Wainwright’s engagement shall be deemed to
be in the same proportion as (a) the total value paid or proposed to be paid or received by the Company pursuant to the applicable
Offering (whether or not consummated) for which Wainwright is engaged to render services bears to (b) the fee paid or proposed
to be paid to Wainwright in connection with such engagement.


 






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5.     The
Company’s indemnity, reimbursement and contribution obligations under this Agreement (a) shall be in addition to, and
shall in no way limit or otherwise adversely affect any rights that any Indemnified Person may have at law or at equity and (b) shall
be effective whether or not the Company is at fault in any way.


 


G.          Limitation
of Engagement to the Company. The Company acknowledges that Wainwright has been retained only by the Company, that Wainwright
is providing services hereunder as an independent contractor (and not in any fiduciary or agency capacity) and that the Company’s
engagement of Wainwright is not deemed to be on behalf of, and is not intended to confer rights upon, any shareholder, owner or
partner of the Company or any other person not a party hereto as against Wainwright or any of its affiliates, or any of its or
their respective officers, directors, controlling persons (within the meaning of Section 15 of the Securities Act or Section 20
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)), employees or agents. Unless otherwise
expressly agreed in writing by Wainwright, no one other than the Company is authorized to rely upon this Agreement or any other
statements or conduct of Wainwright, and no one other than the Company is intended to be a beneficiary of this Agreement. The Company
acknowledges that any recommendation or advice, written or oral, given by Wainwright to the Company in connection with Wainwright’s
engagement is intended solely for the benefit and use of the Company’s management and directors in considering a possible
Offering, and any such recommendation or advice is not on behalf of, and shall not confer any rights or remedies upon, any other
person or be used or relied upon for any other purpose. Wainwright shall not have the authority to make any commitment binding
on the Company. The Company, in its sole discretion, shall have the right to reject any investor introduced to it by Wainwright.


 


H.          Limitation
of Wainwright’s Liability to the Company. Wainwright and the Company further agree that neither Wainwright nor any of
its affiliates or any of its or their respective officers, directors, controlling persons (within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act), employees or agents shall have any liability to the Company, its
security holders or creditors, or any person asserting claims on behalf of or in the right of the Company (whether direct or indirect,
in contract, tort, for an act of negligence or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable
relief arising out of or relating to this Agreement or the services rendered hereunder, except for losses, fees, damages, liabilities,
costs or expenses that arise out of or are based on any action of or failure to act by Wainwright and that are finally judicially
determined to have resulted solely from the gross negligence or willful misconduct of Wainwright.


 






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I.          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applicable to agreements
made and to be fully performed therein. Any disputes that arise under this Agreement, even after the termination of this Agreement,
will be heard only in the state or federal courts located in the City of New York, State of New York. The parties hereto expressly
agree to submit themselves to the jurisdiction of the foregoing courts in the City of New York, State of New York. The parties
hereto expressly waive any rights they may have to contest the jurisdiction, venue or authority of any court sitting in the City
and State of New York. In the event Wainwright or any Indemnified Person is successful in any action, or suit against the Company,
arising out of or relating to this Agreement, the final judgment or award entered shall be entitled to have and recover from the
Company the costs and expenses incurred in connection therewith, including its reasonable attorneys’ fees. Any rights to
trial by jury with respect to any such action, proceeding or suit are hereby waived by Wainwright and the Company.


 


J.          Notices.
All notices hereunder will be in writing and sent by certified mail, hand delivery, overnight delivery, fax or e-mail, if sent
to Wainwright, at the address set forth on the first page hereof, e-mail: notices@hcwco.com, Attention: Head of Investment
Banking, and if sent to the Company, to the address set forth on the first page hereof, e-mail: LawrenceKenyon@outlooktherapeutics.com,
Attention: Chief Executive Officer. Notices sent by certified mail shall be deemed received five days thereafter, notices sent
by hand delivery or overnight delivery shall be deemed received on the date of the relevant written record of receipt, notices
delivered by fax shall be deemed received as of the date and time printed thereon by the fax machine and notices sent by e-mail
shall be deemed received as of the date and time they were sent.


 


K.          Conflicts.
The Company acknowledges that Wainwright and its affiliates may have and may continue to have investment banking and other relationships
with parties other than the Company pursuant to which Wainwright may acquire information of interest to the Company. Wainwright
shall have no obligation to disclose such information to the Company or to use such information in connection with any contemplated
transaction.


 


L.          Anti-Money
Laundering. To help the United States government fight the funding of terrorism and money laundering, the federal laws of the
United States require all financial institutions to obtain, verify and record information that identifies each person with whom
they do business. This means Wainwright must ask the Company for certain identifying information, including a government-issued
identification number (e.g., a U.S. taxpayer identification number) and such other information or documents that Wainwright considers
appropriate to verify the Company’s identity, such as certified articles of incorporation, a government-issued business license,
a partnership agreement or a trust instrument.


 






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M.          Miscellaneous.
The Company represents and warrants that it has all requisite power and authority to enter into and carry out the terms and provisions
of this Agreement and the execution, delivery and performance of this Agreement does not breach or conflict with any agreement,
document or instrument to which it is a party or bound. This Agreement shall not be modified or amended except in writing signed
by Wainwright and the Company. This Agreement shall be binding upon and inure to the benefit of both Wainwright and the Company
and their respective assigns, successors, and legal representatives. This Agreement constitutes the entire agreement of Wainwright
and the Company with respect to the subject matter hereof and supersedes any prior agreements with respect to the subject matter
hereof. If any provision of this Agreement is determined to be invalid or unenforceable in any respect, such determination will
not affect such provision in any other respect, and the remainder of the Agreement shall remain in full force and effect. This
Agreement may be executed in counterparts (including facsimile or electronic counterparts), each of which shall be deemed an original
but all of which together shall constitute one and the same instrument.


 


*********************


 






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In acknowledgment that the foregoing correctly
sets forth the understanding reached by Wainwright and the Company, please sign in the space provided below, whereupon this letter
shall constitute a binding Agreement as of the date indicated above.


 


	 	 	 	Very truly yours,
	 	 	 	 	 
	 	 	 	H.C. WAINWRIGHT & CO., LLC
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	By:	/s/Mark W. Viklund
	 	 	 	 	Name: Mark W. Viklund
	 	 	 	 	Title: Chief Executive Officer
	 	 	 	 	Date: December 10, 2019
	 	 	 	 	 
	 	 	 	 	 
	Accepted and Agreed:	 	 	 
	 	 	 	 	 
	OUTLOOK THERAPEUTICS, INC.	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/ Lawrence A. Kenyon	 	 	 
	 	Name: Lawrence A. Kenyon	 	 	 
	 	Title: CEO/CFO  	 	 	 







 






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