Document:

EX-10.1

 Exhibit 10.1 

Executive Employment Agreement 

This Employment Agreement (the “Agreement”) is made and entered into as of December 31, 2017 (the “Effective Date”)
by and between Harry Fisch, MD, FACS, an individual residing at 30 Springdale Road, Scarsdale, NY 10583 (the “Executive”) and Veru Inc., a Wisconsin corporation with its corporate headquarters at 4400 Biscayne Blvd., Suite 888,
Miami FL 33137 (the “Company”). 
 WHEREAS, the Company is engaged in, among other things, the commercialization and
development of proprietary pharmaceuticals, medical devices and Monograph health products; and 
 WHEREAS, the Executive is a foremost
expert on reproductive health and the STD epidemic and has had numerous academic and clinical appointments as well as a significant media presence; and 

WHEREAS, the Company desires to employ the Executive on the terms and conditions set forth herein; and 

WHEREAS, the Executive desires to be employed by the Company on such terms and conditions. 

NOW, THEREFORE, in consideration of the mutual covenants, promises and obligations set forth herein, the parties agree as follows: 

1. Employment At-Will; Start Date. The Executive’s employment hereunder shall be for no
definite or determinable period of time and the Executive’s employment hereunder may be terminated by either the Company or the Executive at any time and for any reason subject to the provisions of Section 5 below. The start date for the
Executive will be December 31, 2017. 
 2. Position and Duties. 

(a) Position. During the Executive’s employment with the Company, the Executive shall serve as Chief Corporate
Officer. In such position, the Executive shall have such duties as shall be determined from time to time by the Company’s Chief Executive Officer and President (“CEO”). The Executive shall report directly to the CEO. 

 (b) Duties. During the Executive’s employment with the Company pursuant
to this Agreement, the Executive shall devote substantially all of his business time and attention to the performance of the Executive’s duties hereunder and will not engage in any other business, profession or occupation for compensation or
otherwise which would conflict or interfere with the performance of such services either directly or indirectly without the prior written consent of the CEO. Notwithstanding the foregoing, the Executive will be permitted to (a) with the prior
consent of the CEO and which consent can be withheld by the CEO in his discretion, act or serve as a director, trustee, committee member or principal of any type of business, civic or charitable organization as long as such activities are disclosed
in writing to the Company’s CEO; (b) purchase or own less than five percent (5%) of the publicly traded securities of any corporation; provided that, such ownership represents a passive investment and that the Executive is not a
controlling person of, or a member of a group that controls, such corporation; provided further that, the activities described in clauses (a) and (b) do not interfere with the performance of the Executive’s duties and responsibilities to
the Company as provided hereunder, including, but not limited to, the obligations set forth in this Section 2; and (c) devote up to twenty-percent (20%) of his time to clinical activities not associated with Company. 

3. Place of Performance. The principal place of Executive’s employment shall be: (i) Executive’s home office located at 30
Springdale Road, Scarsdale, NY 10583; or alternatively (ii) Executive’s medical office located at 944 Park Avenue, 1st Floor, New York, NY 10028; or (iii) potentially in the future
should the Company’s CEO request, and should the Executive mutually agree, the Company’s headquarters at 4400 Biscayne Blvd., Suite # 888, Miami FL 33137; any of (i) or (ii) or (iii) preceding could be considered as
Executive’s principal place of employment for purposes of this Agreement. Should the Executive relocate to Miami at the Company’s request and with agreement of the Executive, the Company shall pay Executive’s relocation expenses.
Executive will be required to travel on Company business during the Executive’s employment with the Company. 
 4. Compensation.

 4.1 Base Salary. Subject to section 5.2(b)(i) hereof, the Company shall pay the Executive an annual rate of base salary of one-hundred eighty thousand dollars ($180,000) in periodic installments in accordance with the Company’s customary payroll practices, but no less frequently than monthly. The Executive’s base salary shall
be reviewed at least annually by the Company’s CEO, and the CEO may, but shall not be required to, increase the base salary during the Executive’s employment with the Company. The Executive’s annual base salary, as in effect from time
to time, is hereinafter referred to as “Base Salary”. 
 4.2 Annual Cash Incentive Bonus. 

(a) For each fiscal year during the Executive’s employment pursuant to this Agreement, the Executive shall be eligible to
receive an annual cash incentive bonus equal to forty-five percent (45%) of his Base Salary based on meeting certain Company and personal goals to be mutually agreed upon by the Executive and the CEO (the “Annual Bonus”). However, the
decision to provide any Annual Bonus and the amount and terms of any Annual Bonus shall be at the discretion of the Company’s CEO. 

  
 2 

 (b) The Annual Bonus, if any, will be paid no later than the end of the
first quarter of the fiscal year after the fiscal year in which an Annual Bonus, if any, is awarded; provided, however, that in order to be entitled to an Annual Bonus the Executive must be employed by the Company on the date of payment thereof,
except as expressly otherwise provided herein, such as section 5.2(a)(ii) in the event of termination by the Company without cause or by the Executive for good reason. 

4.3 Supersedes Consulting Agreement. As of the Effective Date, this Agreement supersedes and replaces the
consulting agreement between the Company and Executive dated January 1, 2017. 
 4.4 Employee Benefits. During the
Executive’s employment with the Company pursuant to this Agreement, the Executive shall be entitled to participate in all employee benefit plans, practices and programs maintained by the Company, as in effect from time to time (collectively,
“Employee Benefit Plans”) on a basis that is at least as favorable as those provided to other similarly situated executives of the Company and to the extent consistent with applicable law, the terms of the applicable Employee
Benefit Plans, and the Company’s policy for sharing the cost of such benefits as in effect from time to time. The Company reserves the right to amend or cancel any Employee Benefit Plans at any time in its sole discretion, subject to the terms
of such Employee Benefit Plans and applicable law. Executive will be immediately eligible to participate in the US health, dental, vision, disability and life insurance programs of which the premiums are currently fully paid by the Company. 

4.5 Vacation; Paid Time-off. During the Executive’s employment with Company
pursuant to this Agreement, the Executive will be entitled to accrue four weeks (4) paid vacation per fiscal year. The Executive shall receive other paid time-off in accordance with the Company’s
policies for officers as such policies may exist from time to time. 
 4.6 Business Expenses. The Executive shall be
entitled to reimbursement for all reasonable and necessary out-of-pocket business, entertainment and travel expenses incurred by the Executive in connection with the
performance of the Executive’s duties hereunder in accordance with the Company’s expense reimbursement policies and procedures. 
 5.
Termination of Employment. This Agreement and the Executive’s employment hereunder are for no definite or determinable period of time and may be terminated by either the Company or the Executive at any time and for any
reason subject to the provisions of this Section 5. Upon termination of this Agreement and the Executive’s employment hereunder, the Executive shall be entitled to the compensation and benefits described in this Section 5 and shall
have no further rights to any compensation or any other benefits from the Company or any of its affiliates. 

  
 3 

	 	5.1	 Termination by the Company for Cause or by the Executive without Good Reason.

 (a) The Executive’s employment hereunder may be terminated by the Company immediately for Cause (as defined below)
or by the Executive without Good Reason (as defined below). If the Executive’s employment is terminated by the Company for Cause or by the Executive without Good Reason, the Executive shall be entitled to receive: 

 

	 	(i)	 any accrued but unpaid Base Salary and accrued but unused vacation which shall be paid on the pay date
immediately following the Termination Date (as defined below) in accordance with the Company’s customary payroll procedures; 

  

	 	(ii)	 any unpaid Annual Bonus with respect to any completed fiscal year immediately preceding the Termination Date,
if the Executive was still employed by the Company on the last day of the first quarter of the fiscal year after the fiscal year in which an Annual Bonus, if any, was awarded; provided further that, if the Executive’s employment is terminated
by the Company for Cause, then any such unpaid Annual Bonus shall be forfeited; 

  

	 	(iii)	 reimbursement for unreimbursed business expenses properly incurred by the Executive, which shall be subject to
and paid in accordance with the Company’s expense reimbursement policy; and 

  

	 	(iv)	 such employee benefits (including equity compensation), if any, to which the Executive may be entitled under
the Company’s Employee Benefit Plans as of the Termination Date; provided, however, that, if the Executive’s employment is terminated by the Company for Cause, the Executive will not be entitled to any unvested equity and shall forfeit any
vested equity compensation not already received by the Executive. 

 Items 5.1(a)(i) through 5.1(a)(iv) are referred to herein
collectively as the “Accrued Amounts”. 
 (b) For purposes of this Agreement, “Cause” shall mean: 

 

	 	(i)	 the Executive’s failure to perform his duties (other than any such failure resulting from incapacity due
to physical or mental illness or disability); 

  

	 	(ii)	 the Executive’s failure to comply with any valid and legal directive of the CEO; 

 

	 	(iii)	 the Executive’s engagement in dishonesty, illegal conduct or misconduct, which is, in each case, injurious
to the Company or its affiliates; 

  

	 	(iv)	 the Executive’s embezzlement, misappropriation or fraud, whether or not related to the Executive’s
employment with the Company; 

  
 4 

	 	(v)	 the Executive’s conviction of or plea of guilty or nolo contendere to a crime that constitutes a felony
(or state law equivalent) or a crime that constitutes a misdemeanor involving moral turpitude or results in harm to the Company or its affiliates; 

  

	 	(vi)	 the Executive’s breach of the duty of loyalty or breach of fiduciary duty; 

 

	 	(vii)	 the Executive’s unauthorized disclosure of Confidential Information (as defined below);

  

	 	(viii)	 Executive’s material breach of any material obligation under this Agreement or any other written agreement
between the Executive and the Company; or 

  

	 	(ix)	 any material failure by the Executive to comply with the Company’s written policies or rules, as they may
be in effect from time to time during the Executive’s employment with the Company. 

  

	 	5.2	 Termination by the Company Without Cause or by the Executive for Good Reason.

 (a) This Agreement and the Executive’s employment hereunder may be terminated by the Company
without Cause or by the Executive for Good Reason in accordance with the provisions set forth herein. In the event of such termination, the Executive shall be entitled to receive the Accrued Amounts and, subject to the Executive’s compliance
with Sections 6 through 9 of this Agreement and his execution of a general release of claims in favor of the Company and all of its related entities and individuals (the “Release”), which shall include a re-affirmation of Executive’s non-disparagement obligation and his obligation to comply with Sections 6 through 9 of this Agreement and such Release becoming effective
within the number of days permitted under applicable law following the Termination Date (the “Release Effective Date”), the Executive shall be entitled to receive the following: 

 

	 	(i)	 continued Base Salary for six (6) months following the Termination Date payable in equal installments in
accordance with the Company’s normal payroll practices, but no less frequently than monthly, which shall commence on the Company’s regular pay day for the pay period immediately following the pay period that includes the Release Effective
Date; 

  

	 	(ii)	 any unpaid Annual Bonus with respect to any completed fiscal year immediately preceding the Termination Date if
the Executive was still employed by the Company on the last day of the preceding fiscal year; 

  

	 	(iii)	 a pro-rated payment equal to the Executive’s target bonus for the
year in which the Termination occurs as defined in section 4.2(a) hereof multiplied by the percentage of days the Executive was employed by the Company in the year of termination, and payable as and when such bonuses are normally paid for other
executives of the Company; and 

  
 5 

	 	(iv)	 if the Executive timely and properly elects health continuation coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (“COBRA”) or comparable State continuation law, the Company shall reimburse the Executive for the difference between the monthly COBRA or comparable State continuation law premium paid by the Executive for
himself and his dependents and the monthly premium amount paid by similarly situated active executives. Such reimbursement shall be paid to the Executive on the fifteenth of the month immediately following the month in which the Executive timely
remits the premium payment. The Executive shall be eligible to receive such reimbursement until the earliest of: (i) the six (6) month anniversary of the Termination Date; (ii) the date the Executive (in the case of his) or any of his
dependents (in the case of such dependent) is no longer eligible to receive COBRA or comparable State law continuation coverage; and (iii) the date on which the Executive (in the case of his) or any of his dependents (in the case of such
dependent) becomes eligible to receive substantially similar coverage from another employer or other source. 

(b) For purposes of this Agreement, “Good Reason” shall mean the occurrence of any of the following, in
each case during the Executive’s employment under this Agreement without the Executive’s written consent: 
  

	 	(i)	 a reduction in the Executive’s Base Salary of more than ten percent (10%) other than a general reduction
in Base Salary that affects all similarly situated executives in substantially the same proportions; 

  

	 	(ii)	 a relocation of the Executive’s principal place of employment outside of the metropolitan area where the
Executive currently has his principal office; 

  

	 	(iii)	 any material breach by the Company of any material provision of this Agreement; or 

 

	 	(iv)	 a material, adverse change in the Executive’s authority, duties or responsibilities (other than
temporarily while the Executive is physically or mentally incapacitated or as required by applicable law) taking into account the Company’s size, status as a public company and capitalization as of the date of this Agreement.

  
 6 

 The Executive cannot terminate his employment for Good Reason unless he has
provided written notice to the Company of the existence of the circumstances providing grounds for termination for Good Reason within thirty (30) days of the initial existence of such grounds, and the Company has had thirty (30) days from
the date on which such notice is provided to cure such circumstances. If the Company has not cured such Good Reason within thirty (30) days of such notice, the Executive shall have up to thirty (30) days after such cure period to terminate
his employment hereunder for Good Reason. If the Executive does not provide written notice to the Company to terminate his employment for Good Reason within the time period specified herein, then the Executive will be deemed to have waived his right
to terminate for Good Reason with respect to such grounds. 
  

	 	5.3	 Death or Disability. 

(a) The Executive’s employment hereunder shall terminate automatically upon the Executive’s death during the
Executive’s employment under this Agreement, and the Company may terminate the Executive’s employment on account of the Executive’s Disability (as defined below). 

(b) If the Executive’s employment is terminated during the Employment Term on account of the Executive’s death or
Disability, the Executive (or the Executive’s estate and/or beneficiaries, as the case may be) shall be entitled to receive the following: 
  

	 	(i)	 pay for any of the Executive’s accrued but unpaid Base Salary and the Executive’s accrued but unused
vacation as of the date of death or Disability; 

  

	 	(ii)	 any earned but unpaid Annual Bonus with respect to any completed fiscal year immediately preceding the
Executive’s date of death or Disability, if the Executive was still employed by the Company on the last day of the preceding fiscal year; 

  

	 	(iii)	 reimbursement for unreimbursed business expenses properly incurred by the Executive, which shall be subject to
and paid in accordance with the Company’s expense reimbursement policy; and 

  

	 	(iv)	 such employee benefits (including equity compensation), if any, to which the Executive may be entitled under
the Company’s Employee Benefit Plans as of the date of the Executive’s death or Disability. 

(c) For purposes of this Agreement, “Disability” shall mean the Executive is entitled to receive long-term disability
benefits under the Company’s long-term disability plan, or if there is no such plan, the Executive’s inability, due to physical or mental incapacity, to substantially perform all of the essential duties and responsibilities under this
Agreement, with or without reasonable accommodation, for one hundred eighty (180) days out of any three hundred sixty-five (365) day period or one hundred twenty (120) consecutive days; provided however, in the event the Company
temporarily replaces the Executive, or transfers 

  
 7 

 
the Executive’s duties or responsibilities to another individual on account of the Executive’s inability to perform such duties due to a mental or physical incapacity which is, or is
reasonably expected to become, a Disability, then the Executive’s employment shall not be deemed terminated by the Company and the Executive shall not be able to resign with Good Reason as a result thereof. Any question as to the existence of
the Executive’s Disability as to which the Executive and the Company cannot agree shall be determined in writing by a qualified independent physician mutually acceptable to the Executive and the Company. If the Executive and the Company cannot
agree as to a qualified independent physician, each shall appoint such a physician and those two physicians shall select a third who shall make such determination in writing. The determination of Disability made in writing to the Company and the
Executive shall be final and conclusive for all purposes of this Agreement. 
  

	 	5.4	 Change in Control Termination. 

(a) Notwithstanding any other provision contained herein, if the Executive’s employment hereunder is terminated by the
Executive for Good Reason or by the Company without Cause (other than on account of the Executive’s death or Disability) within six (6) months following a Change in Control, the Executive shall be entitled to receive, subject to the
Executive’s compliance with Sections 6 through 9 of this Agreement and his execution of the Release and reaffirmations referred to in Section 5.2, the following: 
  

	 	(i)	 all items of compensation set forth in Section 5.2(a)(i-iv); and 

 

	 	(ii)	 acceleration of unvested equity compensation in accordance with the terms of the Company’s applicable
equity compensation plans and grant agreements. 

 (b) For purposes of this Agreement, “Change
in Control” shall have the meaning set forth in the Company’s applicable equity plans and grant agreements. 
 5.5
Notice of Termination. Any termination of the Executive’s employment hereunder by the Company or by the Executive during the Executive’s employment under this Agreement (other than termination pursuant to Section 5.3(a)
on account of the Executive’s death) shall be communicated by written notice of termination (“Notice of Termination”) to the other party hereto in accordance with Section 25 of this Agreement. The Notice of Termination
shall specify: 
 (a) The termination provision of this Agreement relied upon; 

(b) To the extent applicable, the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated; and 
 (c) The applicable Termination Date. 

  
 8 

	 	5.6	 Termination Date. The Executive’s “Termination Date” shall be:

 (a) If the Executive’s employment hereunder terminates on account of the Executive’s death,
the date of the Executive’s death; 
 (b) If the Executive’s employment hereunder is terminated on account of the
Executive’s Disability, the date that it is specified in the Company’s Notice of Termination after it is determined that the Executive has a Disability; 

(c) If the Company terminates the Executive’s employment hereunder for Cause, the date the Notice of Termination is
delivered to the Executive; 
 (d) If the Company terminates the Executive’s employment hereunder without Cause, the
date specified in the Notice of Termination, which shall be no less than ten (10) business days following the date on which the Notice of Termination is delivered; provided that during said notice period, the Company shall have the right to
change or eliminate the Executive’s duties within its discretion, which shall not be deemed a Good Reason hereunder; 

(e) If the Executive terminates employment hereunder with or without Good Reason, the date specified in the Executive’s
Notice of Termination, which shall be no less than ten (10) business days following the date on which the Notice of Termination is delivered; provided that, the Company may waive all or any part of the ten (10) day notice period without
further accrual or payment of salary or benefits upon written notice to the Executive, and the Executive’s Termination Date shall be the date determined in such notice by the Company; 

Notwithstanding anything contained herein, the Termination Date shall not occur until the date on which the Executive incurs a
“separation from service” within the meaning of Section 409A. 
 5.7 Resignation of All Other Positions. Upon
termination of the Executive’s employment hereunder for any reason, the Executive shall be deemed to have resigned from all positions that the Executive holds as an officer or member of the board of directors (or a committee thereof) of the
Company or any of its affiliates. 
 5.8 Section 280G. 

(a) If any of the payments or benefits received or to be received by the Executive (including, without limitation, any payment
or benefits received in connection with a Change in Control or the Executive’s termination of employment, whether pursuant to the terms of this Agreement or any other plan, arrangement or agreement, or otherwise) (all such payments collectively
referred to herein as the “280G Payments”) constitute “parachute payments” within the meaning of Section 280G of the Code and would, but for this Section 

  
 9 

 
5.8, be subject to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), then prior to making the 280G Payments, a calculation shall be made comparing
(i) the Net Benefit (as defined below) to the Executive of the 280G Payments after payment of the Excise Tax to (ii) the Net Benefit to the Executive if the 280G Payments are limited to the extent necessary to avoid being subject to the
Excise Tax. Only if the amount calculated under (i) above is less than the amount under (ii) above will the 280G Payments be reduced to the minimum extent necessary to ensure that no portion of the 280G Payments is subject to the Excise
Tax. “Net Benefit” shall mean the present value of the 280G Payments net of all federal, state, local, foreign income, employment and excise taxes. Any reduction made pursuant to this Section 5.9 shall be made in a
manner determined by the Company that is consistent with the requirements of Section 409A. 
 (b) Unless the Company and
the Executive otherwise agree, all calculations and determinations under this Section 5.8 shall be made by an independent accounting firm whose determinations shall be conclusive and binding on the Company and the Executive for all purposes.
For purposes of making the calculations and determinations required by this Section 5.8, the accounting firm may rely on reasonable, good faith assumptions and approximations concerning the application of Section 280G and Section 4999
of the Code. The Company and the Executive shall furnish the accounting firm with such information and documents as the accounting firm may reasonably request in order to make its determinations under this Section 5.8. The Company shall bear
all costs the accounting firm may reasonably incur in connection with its services as contemplated by this provision. 
 6.
Cooperation. The parties agree that certain matters in which the Executive will be involved during his employment with the Company may necessitate the Executive’s cooperation in the future. Accordingly, following the
termination of the Executive’s employment for any reason, to the extent reasonably requested by the Company’s CEO, the Executive shall cooperate with the Company in connection with matters arising out of the Executive’s service to the
Company; provided that, the Company shall make reasonable efforts to minimize disruption of the Executive’s other activities. The Company shall reimburse the Executive for reasonable expenses incurred in connection with such cooperation and, to
the extent that the Executive is required to spend substantial time on such matters, the Company shall compensate the Executive at an hourly rate based on the Executive’s Base Salary on the Termination Date. 

7. Confidential Information. The Executive understands and acknowledges that during his employment with the Company, he will have access
to and learn about Confidential Information, as defined below. 

  
 10 

	7.1	 Confidential Information Defined; Restrictions. 

(a) Definition. 

For purposes of this Agreement, “Confidential Information” includes, but is not limited to, all
information not generally known to the public, in spoken, printed, electronic or any other form or medium, relating directly or indirectly to: business processes, methods, policies, plans, publications, documents, research, operations, strategies,
techniques, contracts, transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets, computer programs, computer software, applications, operating systems, software design,
web design, work-in-process, databases, manuals, records, articles, systems, material, sources of material, supplier information, vendor information, financial
information, accounting information, accounting records, legal information, marketing information, advertising information, pricing information, design information, payroll information and staffing information, personnel information, employee lists,
supplier lists, vendor lists, developments, reports, internal controls, security procedures, graphics, drawings, sketches, market studies, sales information, revenue, costs, formulae, product plans, designs, models, ideas, inventions, unpublished
patent applications, discoveries, experimental processes, experimental results, specifications, customer or client information or lists, manufacturing information, distributor lists, and buyer lists of the Company, and any information about or from
any existing or prospective customer, supplier, investor or other associated third party, or of any other person or entity that has entrusted information to the Company in confidence. 

The Executive understands that the above list is not exhaustive, and that Confidential Information also includes other
information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary in the context and circumstances in which the information is known or used.

 The Executive understands and agrees that Confidential Information includes information developed by his in the course of
his employment by the Company as if the Company furnished the same Confidential Information to the Executive in the first instance. Confidential Information shall not include (i) information that is or becomes publicly known to others who are
not under a confidentiality obligation to the Company, without breach by the Executive of Section 7.1 (c) below or (ii) information provided to the Executive by a third party who is not under a confidentiality obligation benefitting the
Company or others with respect to the information. 
 (b) Company Creation and Use of Confidential Information. 

The Executive understands and acknowledges that the Company has invested, and continues to invest, substantial time, money and
specialized knowledge into developing its resources, creating a customer base, generating customer and potential customer lists, training its employees, and improving its offerings in the field of diversified therapeutics and medical devices for
men’s and women’s reproductive health and oncology. The Executive understands and acknowledges that as a result of these efforts, the Company has created, and continues to use and create Confidential Information. This Confidential
Information provides the Company with a competitive advantage over others in the marketplace. 

  
 11 

 (c) Disclosure and Use Restrictions. 

The Executive agrees and covenants: (i) to treat all Confidential Information as strictly confidential; (ii) not to
directly or indirectly disclose, publish, communicate or make available Confidential Information, or allow it to be disclosed, published, communicated or made available, in whole or part, to any entity or person whatsoever (including other employees
of the Company) not having a need to know and authority to know and use the Confidential Information in connection with the business of the Company and, in any event, not to anyone outside of the direct employ of the Company except as required in
the performance of the Executive’s authorized employment duties to the Company or with the prior consent of the CEO acting on behalf of the Company in each instance (and then, such disclosure shall be made only within the limits and to the
extent of such duties or consent); and (iii) not to access or use any Confidential Information, and not to copy any documents, records, files, media or other resources containing any Confidential Information, or remove any such documents,
records, files, media or other resources from the premises or control of the Company, except as required in the performance of the Executive’s authorized employment duties to the Company or with the prior consent of the CEO acting on behalf of
the Company in each instance (and then, such disclosure shall be made only within the limits and to the extent of such duties or consent). Nothing herein shall be construed to prevent disclosure of Confidential Information as may be required by
applicable law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an authorized government agency, provided that the disclosure does not exceed the extent of disclosure required by such law, regulation or order.
The Executive shall promptly provide written notice of any such order to Company’s SVP Corporate Development and Legal. While complying with this Section 7.1 to the greatest extent possible, nothing herein prohibits the Executive from
reporting possible violations of federal law or regulation to any governmental agency from or making other disclosures under the whistleblower provisions of federal or state law or regulation. Executive is not required to notify the Company if
Executive makes such reports or disclosures. 
 The Executive understands and acknowledges that his obligations under this
Agreement with regard to any particular Confidential Information shall commence immediately upon the Executive first having access to such Confidential Information (whether before or after he begins employment by the Company) and shall continue
during and after his employment by the Company until such time as such Confidential Information has become public knowledge other than as a result of the Executive’s breach of this Agreement or breach by those acting in concert with the
Executive or on the Executive’s behalf. . 
 (d) Defend Trade Secrets Act Notice 

Executive is hereby notified in accordance with the Defend Trade Secrets Act of 2016 that he will not be held criminally or
civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (i) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and solely for
the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a 

  
 12 

 
complaint or other document that is filed under seal in a lawsuit or other proceeding. Executive is further notified that if Executive files a lawsuit for retaliation by an employer for
reporting a suspected violation of law, Executive may disclose the employer’s trade secrets to Executive’s attorney and use the trade secret information in the court proceeding if Executive: (i) files any document containing the trade
secret under seal; and (ii) does not disclose the trade secret, except pursuant to court order. 
 8. Restrictive Covenants. 

8.1 Acknowledgement. The Executive understands that the nature of the Executive’s position gives his access to and knowledge
of Confidential Information and places his in a position of trust and confidence with the Company. The Executive understands and acknowledges that the intellectual services he provides to the Company are unique, special or extraordinary because of
his knowledge, experience and expertise in the areas and disciplines for which the Company has chosen to employ his. 
 The Executive
further understands and acknowledges that the Company’s ability to reserve these for the exclusive knowledge and use of the Company is of great competitive importance and commercial value to the Company, and that improper use or disclosure by
the Executive is likely to result in unfair or unlawful competitive activity. 
 8.2
Non-competition. Because of the Company’s legitimate business interest as described herein and the good and valuable consideration offered to the Executive, during the Executive’s
employment with the Company and for the period of eighteen (18) months, to run concurrently, beginning on the last day of the Executive’s employment with the Company (the “Restricted Period”), whether employment is terminated at
the option of the Executive or the Company, the Executive agrees and covenants not to engage in Prohibited Activity within the field of biopharmaceuticals focused on urology and oncology (“Prohibited Field”). 

8.3 Prohibited Activity. For purposes of this Section 8, “Prohibited Activity” is activity in which
the Executive contributes his knowledge, services and/or financial support, directly or indirectly, in whole or in part, as an owner, operator, manager, advisor, lender, investor, consultant, agent, employee, partner, director, stockholder, officer,
volunteer, intern or any other similar capacity to an entity engaged in the same or similar business as the Company, including those engaged in the Prohibited Field. Prohibited Activity also includes activity that may require or inevitably requires
disclosure of Company trade secrets or other Confidential Information. Nothing herein shall prohibit the Executive from purchasing or owning less than five percent (5%) of the publicly traded securities of any corporation, provided that such
ownership represents a passive investment and that the Executive is not a controlling person of, or a member of a group that controls, such corporation. 

  
 13 

 8.4 Non-solicitation of Employees. The
Executive agrees that the Company has made a substantial investment in its employees in order to retain their services and valuable contribution to its business, and to minimize turnover and recruitment training time and cost. Therefore, to protect
this legitimate interest of the Company, the Executive agrees and covenants not to directly or indirectly, on Executive’s own behalf or on behalf of any other person or entity, solicit, hire, recruit, attempt to hire or recruit, or induce the
termination of employment of any employee of the Company during the Restricted Period. 
 8.5
Non-solicitation of Customers. The Executive agrees that the Company has made a substantial investment in order to develop and maintain valuable relationships with its customers and prospective
customers. The Executive further agrees that the Company has long-standing relationships with its customers and that but for the Executive’s employment with the Company, the Executive would not have had access to its customers. Executive
understands and acknowledges that because of the Executive’s experience with and relationship to the Company he will have access to the Company’s customers and prospective customers and learn about much or all of the Company’s
customer information. “Customer Information” includes, but is not limited to, names, phone numbers, addresses, e-mail addresses, order history, order preferences, chain of command,
pricing information and other information identifying facts and circumstances specific to the customer and relevant to sales or services provided by the Company, whether Confidential Information or otherwise. 

The Executive understands and acknowledges that loss of customer or prospective customer relationships and/or goodwill will cause significant
and irreparable harm to the Company. 
 Therefore, to protect these legitimate interests of the Company, Executive agrees and covenants,
during Restricted Period, not to directly or indirectly, on Executive’s own behalf or on behalf of any other person or entity, solicit, contact (including but not limited to e-mail, regular mail, express
mail, telephone, fax, and instant message), attempt to contact or meet with or provide any services to the Company’s current, former or prospective customers for purposes of offering or accepting goods or services similar to or competitive with
those offered by the Company. 
 The restrictions in this Section 8.5 shall only apply to: 

(a) Customers or prospective customers the Executive contacted in any way during the past one (1) year prior to the
Executive’s last day of employment with the Company; or 
 (b) Customers or prospective customers about whom the
Executive has trade secret or other Confidential Information; or 
 (c) Customers under the Executive’s supervisory or
sales purview who became customers during the Executive’s employment with the Company. 

  
 14 

 8.6 Non-interference with Other Business
Relationships. The Executive agrees and covenants, during the Restricted Period, not to directly or indirectly, on Executive’s own behalf or on behalf of any other person, interfere with or cause disruption in any way to the
Company’s contracts or relationships with its business partners, including, but not limited to, vendors, suppliers, manufacturing sources, and IT consultants. 

8.7 Extension of Restricted Period. The Executive agrees that should he breach any of his covenants in this Section 8, the
Restricted Period shall be extended by the length of any period of such breach. 
 9.
Non-disparagement. The Executive agrees and covenants that he will not at any time make, publish or communicate to any person or entity or in any public forum any defamatory or disparaging
remarks, comments or statements concerning the Company or its businesses, or any of its employees, officers, directors, and existing and prospective customers, suppliers, investors and other associated third parties. 

This Section 9 does not, in any way, restrict or impede the Executive from exercising protected rights to the extent that such rights
cannot be waived by agreement or from complying with any applicable law or regulation or a valid order of a court of competent jurisdiction or an authorized government agency, provided that such compliance does not exceed that required by the law,
regulation or order. The Executive shall promptly provide written notice of any such order to Company’s SVP Corporate Development and Legal. 
 10.
Acknowledgement. The Executive acknowledges and agrees that the services to be rendered by his to the Company are of a special and unique character; that the Executive will obtain knowledge and skill relevant to the Company’s
industry, methods of doing business and marketing strategies by virtue of the Executive’s employment; and that the restrictive covenants and other terms and conditions of this Agreement are reasonable and reasonably necessary to protect the
legitimate business interest of the Company. 
 The Executive further acknowledges that the amount of his compensation reflects, in part,
his obligations and the Company’s rights under Sections 7 through 9 of this Agreement; that he has no expectation of any additional compensation, royalties or other payment of any kind not otherwise referenced herein in connection herewith;
that he will not be subject to undue hardship by reason of his full compliance with the terms and conditions of Sections 7 through 9 of this Agreement or the Company’s enforcement thereof. 

11. Remedies. In the event of a breach or threatened breach by the Executive of any of Sections 7 through 9 of this Agreement, the
Executive hereby consents and agrees that the Company shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach or threatened breach from any court of
competent jurisdiction, without the necessity of posting any bond or other security or of showing any actual damages or that money damages would not afford an adequate remedy. The aforementioned equitable relief shall be in addition to, not in lieu
of, legal remedies, monetary damages or other available forms of relief. In the event, the Executive breaches any of his obligations contained in any of Sections 7 through 9, the Company shall be entitled to an award of its costs, reasonable
attorneys’ and expert witness fees, and out-of-pocket expenses incurred in obtaining a judgment or order against the Executive in addition to any to other relief
awarded to the Company. 

  
 15 

 12. Waiver of Defenses. The Executive agrees that in the event the Company brings an
action for injunctive or other relief for any alleged violation by the Executive of any of Sections 7 through 9 above, the Executive will not raise any defense to such action or the relief sought by the Company on the grounds that the Company
terminated the Executive’s employment in bad faith or committed any breach of this Agreement or any other agreement between the parties, and Executive hereby waives any such defenses in any such action. 

13. Work Product and Intellectual Property Protection. 

13.1 Work Product. The Executive acknowledges and agrees that all right, title and interest in and to all writings, works of
authorship, technology, inventions, discoveries, processes, techniques, methods, ideas, concepts, research, proposals, materials and all other work product of any nature whatsoever, that are created, prepared, produced, authored, edited, amended,
conceived or reduced to practice by the Executive individually or jointly with others during the period of his employment by the Company and relate in any way to the business or contemplated business, products, activities, research or development of
the Company or result from any work performed by the Executive for the Company (in each case, regardless of when or where prepared or whose equipment or other resources is used in preparing the same) all rights and claims related to the foregoing,
and all printed, physical and electronic copies, and other tangible embodiments thereof (collectively, “Work Product”), as well as any and all rights in and to US and foreign (a) patents, patent disclosures and
inventions (whether patentable or not), (b) trademarks, service marks, trade dress, trade names, logos, corporate names and domain names, and other similar designations of source or origin, together with the goodwill symbolized by any of the
foregoing, (c) copyrights and copyrightable works (including computer programs), and rights in data and databases, (d) trade secrets, know-how and other confidential information, and (e) all
other intellectual property rights, in each case whether registered or unregistered and including all registrations and applications for, and renewals and extensions of, such rights, all improvements thereto and all similar or equivalent rights or
forms of protection in any part of the world (collectively, “Intellectual Property Rights”), shall be the sole and exclusive property of the Company. 

13.2 Work Made for Hire; Assignment. The Executive acknowledges that, by reason of being employed by the Company at the relevant
times, to the extent permitted by law, all of the Work Product consisting of copyrightable subject matter is “work made for hire” as defined in 17 U.S.C. § 101 and such copyrights are therefore owned by the Company. To the extent that
the foregoing does not apply, the Executive hereby irrevocably assigns to the Company, for no additional consideration, the Executive’s entire right, title and interest in and to all Work Product and Intellectual Property Rights therein,
including the right to sue, counterclaim and recover for all past, present and future infringement, misappropriation or dilution thereof, and all rights corresponding thereto throughout the world. The Company’s rights under this
Section 13.2 are in addition to, and not in lieu of, any substantive protections the Company may have under any law. 

  
 16 

 13.3 Further Assurances; Power of Attorney. During and after his employment,
the Executive agrees to reasonably cooperate with the Company to (a) apply for, obtain, perfect and transfer to the Company the Work Product as well as any and all Intellectual Property Rights in the Work Product in any jurisdiction in the
world; and (b) maintain, protect and enforce the same, including, without limitation, giving testimony and executing and delivering to the Company any and all applications, oaths, declarations, affidavits, waivers, assignments and other
documents and instruments as shall be requested by the Company. The Executive hereby irrevocably grants the Company power of attorney to execute and deliver any such documents on the Executive’s behalf in his name and to do all other lawfully
permitted acts to transfer the Work Product to the Company and further the transfer, prosecution, issuance and maintenance of all Intellectual Property Rights therein, to the full extent permitted by law, if the Executive does not promptly cooperate
with the Company’s request (without limiting the rights the Company shall have in such circumstances by operation of law). The power of attorney is coupled with an interest and shall not be affected by the Executive’s subsequent
incapacity. 
 13.4 No License. The Executive understands that this Agreement does not, and shall not be construed to grant the
Executive any license or right of any nature with respect to any Work Product or Intellectual Property Rights or any Confidential Information, materials, software or other tools made available to his by the Company. 

14. Security. 
 14.1
Security and Access. The Executive agrees and covenants (a) to comply with all Company security policies and procedures as in force from time to time including without limitation those regarding computer equipment, telephone
systems, facilities access, key cards, access codes, Company intranet, internet, social media and instant messaging systems, computer systems, e-mail systems, computer networks, document storage systems,
software, data security, encryption, firewalls, passwords and any and all other Company IT resources and communication technologies (collectively, “Facilities and Information Technology Resources”); (b) not to access or use
any Facilities and Information Technology Resources except as authorized by the Company; and (iii) not to access or use any Facilities and Information Technology Resources in any manner after the termination of the Executive’s employment
by the Company, whether termination is voluntary or involuntary. The Executive agrees to notify the Company promptly in the event he learns of any violation of the foregoing by others, or of any other misappropriation or unauthorized access, use,
reproduction or reverse engineering of, or tampering with any Facilities and Information Technology Resources or other Company property or materials by others. 

  
 17 

 14.2 Exit Obligations. Upon (a) voluntary or involuntary termination of
the Executive’s employment or (b) the Company’s request at any time during the Executive’s employment, the Executive shall (i) provide or return to the Company any and all Company property, including but limited to, keys,
access cards, identification cards, Company credit cards, computers smartphones, equipment, manuals, reports, files, books, compilations, work product, e-mail messages, thumb drives and other removable
information storage devices, hard drives, and data and all Company documents and materials belonging to the Company and stored in any fashion, including but not limited to those that constitute or contain any Confidential Information or Work
Product, that are in the possession or control of the Executive, whether they were provided to the Executive by the Company or any of its business associates or created by the Executive in connection with his employment by the Company; and
(ii) delete or destroy all copies of any such documents and materials not returned to the Company that remain in the Executive’s possession or control, including those stored on any non-Company
devices, networks, storage locations and media in the Executive’s possession or control. 
 15. Publicity. The Executive hereby
irrevocably consents to any and all uses and displays, by the Company and its agents, representatives and licensees, of the Executive’s name, voice, likeness, image, appearance and biographical information in, on or in connection with any
pictures, photographs, audio and video recordings, digital images, websites, television programs and advertising, other advertising and publicity, sales and marketing brochures, books, magazines, other publications, CDs, DVDs, tapes and all other
printed and electronic forms and media throughout the world, at any time during or after the period of his employment by the Company, for all legitimate commercial and business purposes of the Company (“Permitted Uses”)
without further consent from or royalty, payment or other compensation to the Executive. The Executive hereby forever waives and releases the Company and its directors, officers, employees and agents from any and all claims, actions, damages,
losses, costs, expenses and liability of any kind, arising under any legal or equitable theory whatsoever at any time during or after the period of his employment by the Company, arising directly or indirectly from the Company’s and its
agents’, representatives’ and licensees’ exercise of their rights in connection with any Permitted Uses. 
 16. Governing Law;
Jurisdiction and Venue. This Agreement, for all purposes, shall be construed in accordance with the laws of the State of Florida without regard to conflicts of law principles. Any action or proceeding by either of the parties to enforce this
Agreement shall be brought only in a state or federal court located in the state of Florida, county of Dade. The parties hereby irrevocably submit to the exclusive jurisdiction of such courts and waive any defenses relating to personal jurisdiction,
improper venue or inconvenient forum with respect to any such action or proceeding. 
 17. Entire Agreement. Unless specifically
provided herein, this Agreement contains all of the understandings and representations between the Executive and the Company pertaining to the subject matter hereof and supersedes all prior and contemporaneous understandings, agreements,
representations and warranties, both written and oral, with respect to such subject matter. The parties mutually agree that the Agreement can be specifically enforced in court and can be cited as evidence in legal proceedings alleging breach of the
Agreement. 

  
 18 

 18. Modification and Waiver. No provision of this Agreement may be amended or modified
unless such amendment or modification is agreed to in writing and signed by the Executive and by the CEO of the Company. No waiver by either of the parties of any breach by the other party hereto of any condition or provision of this Agreement to be
performed by the other party hereto shall be deemed a waiver of any similar or dissimilar provision or condition at the same or any prior or subsequent time, nor shall the failure of or delay by either of the parties in exercising any right, power
or privilege hereunder operate as a waiver thereof to preclude any other or further exercise thereof or the exercise of any other such right, power or privilege. 

19. Severability. Should any provision of this Agreement be held by a court of competent jurisdiction to be enforceable only if modified,
or if any portion of this Agreement shall be held as unenforceable and thus stricken, such holding shall not affect the validity of the remainder of this Agreement, the balance of which shall continue to be binding upon the parties with any such
modification to become a part hereof and treated as though originally set forth in this Agreement. 
 The parties further agree that any
such court is expressly authorized and shall modify any such unenforceable provision of this Agreement in lieu of severing such unenforceable provision from this Agreement in its entirety, whether by rewriting the offending provision, deleting any
or all of the offending provision, adding additional language to this Agreement or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by
law. 
 The parties expressly agree that this Agreement as so modified by the court shall be binding upon and enforceable against each of
them. In any event, should one or more of the provisions of this Agreement be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions hereof, and if such
provision or provisions are not modified as provided above, this Agreement shall be construed as if such invalid, illegal or unenforceable provisions had not been set forth herein. 

20. Captions. Captions and headings of the sections and paragraphs of this Agreement are intended solely for convenience and no provision
of this Agreement is to be construed by reference to the caption or heading of any section or paragraph. 
 21. Counterparts. This
Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which taken together shall constitute one and the same instrument. 

22. Section 409A. 

22.1 The Parties’ Intent. The intent of the Parties is that payments and benefits under this Agreement comply with or be
exempt for Section 409A of the Code and the regulations and guidance promulgated thereunder (collectively, “Code Section 409A”), and this Agreement and any associated documents shall be interpreted and construed in a manner the
establishes an 

  
 19 

 
exemption from (or compliance with Code Section 409A). Any terms of this Agreement that are undefined or ambiguous shall be interpreted in a manner that complies with Code Section 409A
to the extent necessary to comply with Code Section 409A. If for any reason, such imprecision in drafting any provision of this Agreement (or any award of compensation, including, without limitation, equity compensation or benefits) does not
accurately reflect its intended establishment as an exemption from (or compliance with Code Section 409A), as demonstrated by consistent interpretations or other evidence of intent, such provision shall be considered ambiguous as to its
exemption from (or compliance with) Code Section 409A and shall be interpreted in a manner consistent with such intent, as determined in the discretion of the Company. 

22.2 Separation from Service. A termination of employment shall not be deemed to have occurred for purposes of any provision of
this Agreement providing for any payment of any amounts or benefits that the Company determines may be considered nonqualified deferred compensation under Code Section 409A upon or following termination of employment unless such termination is
a “Separation of Service” with the meaning of Code Section 409A, and, for purposes of any such provision of this Agreement, references to a “termination,” “termination of employment” or the like shall mean a
separation of service. The determination of whether and when a separation of service has occurred for purposes of this Agreement shall be made in in accordance with the presumptions set forth in
Section 1.409A-1(h) of the Treasury Regulations. 
 22.3 Reimbursements. Any
reimbursements and in-kind benefits provided under this Agreement that constitute deferred compensation within the meaning of Code Section 409A shall be made or provided in accordance with the
requirements of Code Section 409a, including, without limitation, that in no event shall any fees, expenses or other amounts eligible to be reimbursed by the Company under this Agreement be paid later that the last day of the calendar year next
following the calendar year in which the applicable fees, expenses or other amounts were incurred. 
 22.4 Payments. For
purposes of Code Section 409A, the Executive’s right to receive any installment payments shall be treated as a right to receive a series of separate and distinct payments. Whenever a payment under this Agreement specifies a payment period
with reference to a number of days (for example, “payment shall be made within thirty (30) days following the date of termination), the actual date of payment within the specified period shall be within the sole discretion of the Company.
In no event may the Executive, directly or indirectly, designate the calendar year of any payment to be made under this Agreement, to the extent that such payment is subject to Code Section 409A. 

22.5 No Company Warranties. The Company makes no representation or warranty and shall have no liability to the Executive or any
other person if any provisions in this Agreement are determined to constitute deferred compensation subject to Code Section 409A but do not satisfy an exemption from, or the conditions of, Code Section 409A. 

  
 20 

 23. Notification to Subsequent Employer. When the Executive’s employment with the
Company terminates, the Executive agrees to notify any subsequent employer of the restrictive covenants sections contained in this Agreement. The Executive will also deliver a copy of such notice to the Company before the Executive commences
employment with any subsequent employer. In addition, the Executive authorizes the Company to provide a copy of sections 7 to 12 of this Agreement to third parties, including but not limited to, the Executive’s subsequent, anticipated or
possible future employer. 
 24. Successors and Assigns. This Agreement is personal to the Executive and shall not be assigned by the
Executive. Any purported assignment by the Executive shall be null and void from the initial date of the purported assignment. The Company may assign this Agreement to any successor or assign (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or assets of the Company. This Agreement shall inure to the benefit of the Company and permitted successors and assigns. 

25. Notice. Notices and all other communications provided for in this Agreement shall be in writing and shall be delivered personally or
sent by registered or certified mail, return receipt requested, or by overnight carrier to the parties at the addresses set forth below (or such other addresses as specified by the parties by like notice): 

If to the Company: 
 Veru Inc. 

4400 Biscayne Blvd 
 Suite 888 

Miami, FL 33137 
 Attention: SVP Corp. Dev. & Legal 

If to the Executive: 
 Harry Fisch, MD, FACS 

30 Springdale Road 
 Scarsdale, NY 10583 

26. Representations of the Executive. The Executive represents and warrants to the Company that: 

(a) The Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not conflict with or result
in a violation of, a breach of, or a default under any contract, agreement or understanding to which he is a party or is otherwise bound; and 

(b) The Executive’s acceptance of employment with the Company and the performance of his duties hereunder will not violate any non-solicitation, non-competition or other similar covenant or agreement of a prior employer. 

  
 21 

 27. Withholding. The Company shall have the right to withhold from any amount payable
hereunder any federal, state and/or local taxes in order for the Company to satisfy any withholding tax obligation it may have under any applicable law or regulation. 

28. Survival. Upon the termination of this Agreement, the respective rights and obligations of the parties hereto shall survive such
termination to the extent necessary to carry out the intentions of the parties under this Agreement. 
 29. Acknowledgement of Full
Understanding. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS FULLY READ, UNDERSTANDS AND VOLUNTARILY ENTERS INTO THIS AGREEMENT. THE EXECUTIVE ACKNOWLEDGES AND AGREES THAT HE HAS HAD AN OPPORTUNITY TO ASK QUESTIONS AND CONSULT WITH AN
ATTORNEY OF HIS CHOICE BEFORE SIGNING THIS AGREEMENT. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written
above. 
  

	
	VERU INC.
	
	 /s/ Mitchel S. Steiner

	 Mitchell S. Steiner, MD, FACS
 CEO and
President

  

	
	Harry Fisch, MD, FACS
	
	 /s/ Harry Fisch

	Executive

  
 22Exhibit 10.1

 

Execution Version

 

	
ROYAL BANK OF CANADA
   200 Vesey Street
   New York, New York 10281
    	
 
    	
BARCLAYS   BANK PLC
    745 Seventh Avenue
    New York, New York 10019
    

 

PERSONAL AND CONFIDENTIAL

 

September 24, 2018

 

Victory Capital Holdings, Inc.

4900 Tiedeman Road, 4th Floor
 Brooklyn, Ohio 44144

Attention:                      Terence Sullivan

Chief Financial Officer

 

Project Patriot

Amended & Restated Commitment Letter

 

Ladies and Gentlemen:

 

You have informed Royal Bank of Canada (“Royal Bank”), RBC Capital Markets* (“RBCCM” and, together with Royal Bank, “RBC”) and Barclays Bank PLC (“Barclays” and, together with RBC, the “Commitment Parties,” “we” or “us”) that Victory Capital Holdings, Inc. (the “Borrower”) intends to, directly or indirectly, acquire (the “Acquisition”) 100% of the outstanding equity interests of an entity previously identified to us as “Patriot” (the “Target”), from the current equity-holders thereof (collectively, the “Sellers”).  Reference is made to that certain Credit Agreement, dated as of February 12, 2018, by and among the Borrower, Royal Bank, as administrative agent (the “Administrative Agent”), the lenders party thereto (the “Existing Lenders”) and the other parties thereto (as amended, restated, supplemented or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”; the existing Term Facility thereunder, the “Existing Term Loan Facility”).  Capitalized terms used without definition in this letter (together with the annexes hereto, this “Amended & Restated Commitment Letter”) have the meanings given to them in the annexes hereto or the Existing Credit Agreement, as applicable.  This Amended & Restated Commitment Letter amends and restates and supersedes in its entirety that certain commitment letter (the “Original Commitment Letter”) dated September 21, 2018 (the “Original Commitment Letter Date”), among Royal Bank, RBCCM and you, and such Original Commitment Letter shall be of no further force and effect.

 

You have also informed us that (i) the Acquisition, (ii) the Refinancing (as defined in Annex B) and (iii) the payment of fees and expenses in connection with the foregoing will be financed in part with a $265.0 million senior secured incremental first lien term loan B facility (the “Incremental Term Loan Facility”) having the terms set forth on Annex A (the “Incremental Term Loan Term Sheet”).  The Acquisition, the Refinancing, the initial borrowings under the Incremental Term Loan Facility, the payment of fees and expenses in connection with the foregoing, and all related transactions are referred to herein as the “Transactions.”

 

* RBC Capital Markets is a brand name for the capital markets activities of Royal Bank of Canada and its affiliates.

 

 

1.                                      Commitments; Titles and Roles.

 

Based upon the foregoing, each of Royal Bank and Barclays (in such capacities, the “Initial Lenders”) hereby severally, and not jointly, commits to provide to the Borrower 50% and 50%, respectively, of the Incremental Term Loan Facility upon the principal terms set forth or referred to herein, in the Fee Letter and in the Incremental Term Loan Term Sheet, and otherwise on terms identical to the terms applicable to the Existing Term Loans set forth in the Existing Credit Agreement; it being understood and agreed that the only conditions precedent to such commitment are the conditions expressly set forth on Annex B hereto.

 

We are pleased to confirm the arrangements pursuant to which each of RBCCM and Barclays is authorized by you to act, and each of RBCCM and Barclays is pleased to confirm its agreement to act, as joint lead arrangers and joint bookrunners (in such capacities, the “Lead Arrangers”) in connection with the Incremental Term Loan Facility.

 

Our fees for our commitment and for services related to the Incremental Term Loan Facility are set forth in a separate Fee Letter entered into by you, Royal Bank, RBCCM and Barclays on the date hereof (the “Fee Letter”).

 

It is agreed that (i) RBCCM shall have “left side” designation and shall appear on the top left, and (ii) Barclays shall have “right side” designation and shall appear on the top right, in each case, of the Confidential Information Memorandum (as defined below), the Lender Presentation (as defined below) and all other information or marketing materials in respect of the Incremental Term Loan Facility.  At any time within 10 days after the date of this Commitment Letter additional agents, co-agents, arrangers, co-arrangers, bookrunners, co-bookrunners, managers or co-managers (any such agent, agent, co-agent, arranger, co-arranger, bookrunner, co-bookrunner, manager or co-manager, an “Additional Commitment Party” and, together with us, the “Commitment Parties”) may be appointed or additional titles conferred in respect of the Incremental Term Loan Facility in a manner and with economics determined by the Lead Arrangers in consultation with you and reasonably acceptable to you (it being understood and agreed that, (i) to the extent you appoint Additional Commitment Parties or confer other titles in respect of the Incremental Term Loan Facility, the commitments of each Initial Lender in respect of the Incremental Term Loan Facility will be reduced on a pro rata basis by the amount of the commitments of such appointed entities upon the execution by such financial institution of customary joinder documentation in a form reasonably satisfactory to you and (ii) no other agent, co-agent, arranger, co-arranger, bookrunner, co-bookrunner, manager or co-manager shall be entitled to greater economics in respect of the Incremental Term Loan Facility than any Initial Lender and no more than 20% in the aggregate of the commitments for the aggregate Incremental Term Loan Facility may be provided by all such agents, co-agents, arrangers, co-arrangers, bookrunners, co-bookrunners, managers or co-managers).  You agree that, subject to the foregoing sentence, no other agent, co-agent, arranger, co-arranger, bookrunner, co-bookrunner, manager or co-manager will be appointed, no other titles will be awarded and no compensation (other than that expressly contemplated by this Amended & Restated Commitment Letter and the Fee Letter referred to below and other than in connection with any additional appointments referred to above) will be paid in connection with the Incremental Term Loan Facility unless you and we shall so agree.

 

2.                                      Conditions Precedent.

 

The Commitment Parties’ commitments and agreements hereunder are subject only to the conditions precedent listed on Annex B attached to this Amended & Restated Commitment Letter.

 

2

 

Notwithstanding anything in this Amended & Restated Commitment Letter, the Fee Letter or any other letter agreements or other undertakings concerning the financing of the Acquisition to the contrary, (a) the only representations the accuracy of which will be a condition to the availability of the Incremental Term Loan Facility on the Closing Date will be (i) the representations made by or with respect to the Target in the Acquisition Agreement as are material to the interests of the Lenders and the Lead Arrangers (but only to the extent that the Borrower or its affiliates have the right not to consummate the Acquisition, or to terminate their obligations (or otherwise do not have an obligation to close), under the Acquisition Agreement as a result of a failure of such representations in the Acquisition Agreement to be true and correct) (such representations and warranties, the “Specified Acquisition Agreement Representations”) and (ii) the Specified Representations (as defined below), and (b) the terms of the Facility Documents (as defined below) for the Incremental Term Loan Facility will be such that they do not impair the availability of the Incremental Term Loan Facility on the Closing Date if the conditions set forth in Annex B hereto are satisfied (it being understood that to the extent any security interest in the intended collateral (other than any collateral the security interest in which may be perfected by the filing of a UCC financing statement or the delivery of stock certificates of the Target and its material domestic subsidiaries; provided that any such stock certificates of the Target and its material domestic subsidiaries will be required to be delivered on the Closing Date only to the extent received from the Seller after you have used commercially reasonable efforts to cause the Seller to deliver them to you on the Closing Date) is not perfected on the Closing Date after your use of commercially reasonable efforts to do so, the perfection of such security interest(s) will not constitute a condition precedent to the availability of the Incremental Term Loan Facility on the Closing Date but such security interest(s) will be required to be perfected after the Closing Date pursuant to the requirements of Section 5.11 of the Existing Credit Agreement.  As used herein, “Specified Representations” means the representations in the Existing Credit Agreement, as applicable to the Borrower and the Guarantors (as defined in Annex A), relating to incorporation or formation; organizational power and authority to enter into the Facility Documents relating to the Incremental Term Loan Facility; due authorization, execution, delivery and enforceability of such Facility Documents; solvency on a consolidated basis as of the Closing Date after giving pro forma effect to the transactions occurring on the Closing Date and consistent with the solvency certificate in Exhibit M to the Existing Credit Agreement; no conflicts of the Facility Documents with the charter documents; Federal Reserve margin regulations; the Investment Company Act; the PATRIOT Act; use of proceeds not violating FCPA, OFAC and other anti-terrorism laws; and, subject to the limitations on perfection of security interests set forth in the preceding sentence, the creation, validity and perfection of the security interests granted in the proposed collateral.  This paragraph, and the provisions herein, shall be referred to as the “Limited Conditionality Provisions.”

 

The Incremental Term Loan Facility shall be documented as an amendment to the Existing Credit Agreement, as well as, to the extent necessary, other documents related thereto including, without limitation, the Loan Documents (as defined in the Existing Credit Agreement) and other definitive documents (collectively, the “Facility Documents”), which shall effect only those changes to the Existing Credit Agreement and related Loan Documents set forth in Annex A hereto (subject to the “market flex” provisions of the Fee Letter) and such other ministerial changes as are necessary to cause the Incremental Term Loan Facility to be incorporated into the Existing Credit Agreement.

 

3.                                      Syndication

 

The Lead Arrangers intend, and reserve the right, to syndicate the Incremental Term Loan Facility to a group of banks, financial institutions and other institutional lenders identified by the Lead Arrangers in consultation with you and subject to your consent (such consent not to be unreasonably withheld or delayed) (collectively, the “Lenders”); provided that the Lead Arrangers agree not to syndicate to any Disqualified Institution.  No Disqualified Institution may become a Lender or have any commitment or right (including a participation right in respect of the Incremental Term Loan Facility) with respect to any

 

3

 

loan or other extension of credit under the Incremental Term Loan Facility without the written consent of the Borrower.  You acknowledge and agree that the commencement of syndication shall occur in the discretion of the Lead Arrangers.  The Lead Arrangers will lead the syndication, including determining the timing of all offers to potential Lenders, any title of agent or similar designations or roles awarded to any Lender and the acceptance of commitments, the amounts offered and the compensation provided to each Lender from the amounts to be paid to the Lead Arrangers pursuant to the terms of this Amended & Restated Commitment Letter and the Fee Letter.  The Lead Arrangers will determine the final commitment allocations and will notify you of such determinations.  You agree to use all commercially reasonable efforts to ensure that the Lead Arrangers’ syndication efforts benefit from the existing lending relationships of the Borrower and the Target and their respective subsidiaries.  To facilitate an orderly and successful syndication of the Incremental Term Loan Facility, you agree that, until the later of (A) the Closing Date and (B) the earlier of (i) 60 days after the Closing Date and (ii) a Successful Syndication (as defined in the Fee Letter) (such date, the “Syndication Date”), you will not, and you will use commercially reasonable efforts to ensure that the Target does not, syndicate or issue, attempt to syndicate or issue, or announce the syndication or issuance of, any debt facility or any debt security of the Borrower or the Target or any of their respective subsidiaries (other than the Incremental Term Loan Facility, indebtedness permitted pursuant to the Acquisition Agreement, borrowings under the Existing Credit Agreement and other existing lines of credit in the ordinary course of business), without the prior written consent of the Lead Arrangers.  For the avoidance of doubt, nothing in this Section 3 shall entitle any Initial Lender to reduce its commitment under this Amended & Restated Commitment Letter in the event the Lead Arrangers are unable to syndicate the Incremental Term Loan Facility.  Notwithstanding the Lead Arrangers’ right to syndicate the Incremental Term Loan Facility and receive commitments with respect thereto, except in connection with an assignment to an Additional Commitment Party pursuant to the second paragraph under Section 1 above, unless otherwise agreed to by you, (x) the Commitment Parties shall not be relieved or released from their obligations hereunder (including the Commitment Parties’ obligation to fund the Incremental Term Loan Facility on the Closing Date) in connection with any syndication, assignment or participation in the Incremental Term Loan Facility until the initial funding of the Incremental Term Loan Facility on the Closing Date and (y) unless you and we agree in writing, the Lead Arrangers shall retain exclusive control over all rights and obligations with respect to the Incremental Term Loan Facility, including all rights with respect to consents, modifications, supplements, waivers and amendments, until the Closing Date has occurred.  Without limiting your obligations to assist with the syndication efforts as set forth herein, it is understood and agreed that the commitments hereunder are not conditioned upon the syndication of, or receipt of commitments in respect of, the Incremental Term Loan Facility and in no event shall the commencement or successful completion of the syndication of the Incremental Term Loan Facility constitute a condition to the availability and initial funding of the Incremental Term Loan Facility on the Closing Date.

 

You agree to cooperate with the Lead Arrangers, and agree to use commercially reasonable efforts to cause the Target to cooperate with the Lead Arrangers, in connection with the syndication of the Incremental Term Loan Facility, including, without limitation, (i) your assistance in the preparation of one or more information packages for the Incremental Term Loan Facility regarding the business, operations, financial projections and prospects of the Borrower and the Target (collectively, the “Confidential Information Memorandum”) including, without limitation, information relating to the transactions contemplated hereunder prepared by or on behalf of you or the Target deemed reasonably necessary by the Lead Arrangers to complete the syndication of the Incremental Term Loan Facility (including, without limitation, any quality of earnings report prepared in connection with the Transactions, which you shall use commercially reasonable efforts to make available to Lenders who agree to a customary non-disclosure and non-reliance letter with the preparer of such report), (ii) your delivery of customary financial projections of the Borrower and the Target for use in the Confidential Information Memorandum, (iii) your using commercially reasonably efforts to obtain (or re-confirm, if applicable), prior to the commencement of the Marketing Period (as defined in Annex B), (a) a public

 

4

 

corporate family rating from Moody’s Investor Services, Inc. (“Moody’s”), (b) a public corporate credit rating from Standard & Poor’s Financial Services LLC, a subsidiary of S&P Global Inc. (“S&P”) and (c) a public credit rating for the Incremental Term Loan Facility from each of Moody’s and S&P (it being understood that in no event shall any specific rating be required nor shall obtaining any such rating be a condition to the Commitment Parties’ commitments hereunder or the funding of the Incremental Term Loan Facility on the Closing Date) and (iv) your presentation of one or more customary information packages for the Incremental Term Loan Facility reasonably acceptable in format and content to the Lead Arrangers (collectively, the “Lender Presentation”) in meetings and other communications with prospective Lenders or agents in connection with the syndication of the Incremental Term Loan Facility (including, without limitation, direct contact between senior management and representatives, with appropriate seniority and expertise, of the Borrower (and your using commercially reasonable efforts to cause direct contact between senior management and representatives of the Target) with prospective Lenders and participation of such persons in meetings) (such initial meeting with prospective Lenders, the “Bank Meeting”).  In connection with the preparation of any such Confidential Information Memorandum and Lender Presentation, you agree to provide the Lead Arrangers, upon request, with all information, documentation or materials reasonably requested to be delivered to the Lead Arrangers in connection therewith (collectively, the “Information”).  You agree that Information regarding the Incremental Term Loan Facility and Information provided by you, the Target or your or their respective representatives to the Lead Arrangers in connection with the Incremental Term Loan Facility (including, without limitation, the Confidential Information Memorandum, the Lender Presentation and draft, and execution copies of the Loan Documents) may be disseminated to potential Lenders and other persons through one or more internet sites (including an IntraLinks, SyndTrak or other electronic workspace (the “Platform”)) created for purposes of syndicating the Incremental Term Loan Facility or otherwise, in accordance with the Lead Arrangers’ standard syndication practices, and you acknowledge that neither the Lead Arrangers nor any of their affiliates will be responsible or liable to you or any other person or entity for damages arising from the use by others of any Information or other materials obtained on the Platform.

 

It is understood that in connection with your assistance described above, you will provide, and cause all other applicable persons to provide, customary authorization letters to the Lead Arrangers authorizing the distribution of the Information to prospective Lenders.  The Borrower acknowledges that certain of the Lenders may be “public side” Lenders (i.e. Lenders that do not wish to receive Private-Side Information (as defined below)) (each, a “Public Lender”; and Lenders who are not Public Lenders being referred to herein as “Private Lenders”).  At the reasonable request of the Lead Arrangers, the Borrower agrees to assist in the preparation of an additional version of the Confidential Information Memorandum and the Lender Presentation to be used by Public Lenders containing a representation that such Information does not contain Private-Side Information.  “Public-Side Information” means information that is either (x) of a type that would be made publicly available if the Borrower, the Target or any of their respective subsidiaries were issuing securities pursuant to a public offering or (y) not material non-public information (for purposes of United States federal, state or other applicable securities laws); and “Private-Side Information” means any information that is not Public-Side Information.  In addition, the Borrower will clearly designate as Public-Side Information all Information provided to the Lead Arrangers by or on behalf of the Borrower or the Target which contains exclusively Public-Side Information.  The Borrower acknowledges and agrees that the following documents may be distributed to all Lenders (including Public Lenders): (a) drafts and final versions of the Loan Documents; (b) term sheets and notification of changes in the terms of the Incremental Term Loan Facility and (c) administrative materials prepared by the Lead Arrangers for prospective Lenders (such as a lender meeting invitation, allocations and funding and closing memoranda).

 

With your consent (not to be unreasonably withheld), at the Commitment Parties’ own expense, the Commitment Parties may place advertisements in financial and other newspapers and periodicals or on a

 

5

 

home page or similar place for dissemination of information on the Internet or worldwide web as the Commitment Parties may choose, and circulate similar promotional materials, after the closing of the transactions in the form of a “tombstone”, “case study” or otherwise, containing information customarily included in such advertisements and materials, including (i) the names of the Borrower and its affiliates (or any of them), (ii) the Commitment Parties and their affiliates’ titles and roles in connection with the transactions, and (iii) the amount, type and closing date of such transactions.

 

4.                                      Information.

 

You represent and covenant that (i) all written Information (other than financial projections, estimates, forecasts, forward-looking information and information of a general economic or industry-specific nature) provided directly or indirectly by you to the Commitment Parties or the Lenders in connection with the transactions contemplated hereunder, when taken as a whole, is and will be complete and correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made (giving effect to all supplements and updates thereto) (it being understood that, with respect to the Target, its subsidiaries and its representatives, such representations are made to the best of your knowledge) and (ii) the financial projections that have been or will be made available to the Commitment Parties or the Lenders by or on behalf of you have been and will be prepared in good faith based upon assumptions that are believed by the preparer thereof to be reasonable at the time such financial projections are furnished to the Commitment Parties or the Lenders, it being understood and agreed that financial projections are not a guarantee of financial performance and actual results may differ from financial projections and such differences may be material.  You agree that if at any time prior to the Syndication Date you become aware that any of the representations in the preceding sentence would be incorrect in any material respect if the Information and financial projections were being furnished, and such representations were being made, at such time, then you will promptly supplement, or cause to be supplemented, the Information and financial projections so that such representations will be correct in all material respects under those circumstances.  In arranging and syndicating the Incremental Term Loan Facility, the Commitment Parties will be entitled to use and rely on the Information and the financial projections without responsibility for independent verification thereof.  We will have no obligation to conduct any independent evaluation or appraisal of the assets or liabilities of you, any of your subsidiaries, the Target or any other party or to advise or opine on any related solvency issues.

 

5.                                      Indemnification and Related Matters.

 

In connection with arrangements such as this, it is our firm’s policy to receive indemnification.  You agree to indemnify and hold harmless each of the Commitment Parties and each Related Party thereof in accordance with Section 9.03(b) of the Existing Credit Agreement (as if an Indemnitee thereunder).

 

In addition, if the Acquisition is consummated and the Incremental Term Loan Facility is funded, you agree to reimburse us periodically for our reasonable and documented out-of-pocket fees and expenses (but limited, in the case of legal fees and expenses, to the actual reasonable and documented out-of-pocket fees, disbursements and other charges of one firm of outside counsel and, if reasonably necessary, of one local counsel in any relevant jurisdiction) incurred in connection with the Incremental Term Loan Facility (including the syndication thereof), this Amended & Restated Commitment Letter or the Fee Letter.

 

6.                                      Assignments.

 

This Amended & Restated Commitment Letter may not be assigned by any party hereto (except by the Commitment Parties as set forth below) without the prior written consent of each other party hereto (and

 

6

 

any purported assignment without such consent will be null and void), is intended to be solely for the benefit of the Commitment Parties and the other parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto.  Any Commitment Party may assign its commitments and agreements hereunder, in whole or in part, to any of its affiliates and, as provided above, to any Additional Commitment Party prior to the Closing Date.  Any assignment by a Commitment Party to any person (other than any Additional Commitment Party) made prior to the initial funding under the Incremental Term Loan Facility will not relieve such Commitment Party of its obligations set forth herein to fund that portion of the commitments so assigned to the extent such assignee fails to fund the portion of the commitment assigned to it on the Closing Date notwithstanding the satisfaction of the conditions of such funding set forth herein.  None of this Amended & Restated Commitment Letter or the Fee Letter may be amended or any term or provision hereof or thereof waived or otherwise modified except by an instrument in writing signed by each of the parties hereto or thereto, as applicable, and any term or provision hereof or thereof may be amended or waived only by a written agreement executed and delivered by all parties hereto or thereto.

 

7.                                      Confidentiality.

 

Please note that this Amended & Restated Commitment Letter and the Fee Letter and any written communications provided by, or oral discussions with, the Commitment Parties in connection with this arrangement are exclusively for your information and may not be disclosed by you to any third party or circulated or referred to publicly without the prior written consent of the Commitment Parties except, after providing written notice to the Commitment Parties to the extent you are permitted to do so under applicable law, pursuant to a subpoena or order issued by a court of competent jurisdiction or by a judicial, administrative or legislative body or committee; provided that the Commitment Parties hereby consent to your disclosure of (i) this Amended & Restated Commitment Letter, the Fee Letter, and such communications and discussions to your officers, directors, employees, affiliates, controlling persons, members, partners, attorneys, accountants, representatives, agents and advisors who are directly involved in the consideration of the Incremental Term Loan Facility and who have been informed by you of the confidential nature of such advice and this Amended & Restated Commitment Letter and the Fee Letter and who have agreed to treat such information confidentially, (ii) this Amended & Restated Commitment Letter, the Fee Letter or the information contained herein or therein to the Target and the Seller to the extent you notify such persons of their obligations to keep such material confidential, and to the Target’s and the Seller’s respective officers, directors, employees, affiliates, controlling persons, members, partners, attorneys, accountants, representatives, agents and advisors who are directly involved in the consideration of the Incremental Term Loan Facility to the extent such persons agree to hold the same in confidence (provided that any such disclosure of the Fee Letter or its terms or substance shall be redacted in a manner reasonably satisfactory to the Commitment Parties), (iii) this Amended & Restated Commitment Letter and the Fee Letter as required by applicable law or compulsory legal process or as requested by a governmental authority (in which case you agree, to the extent you are permitted to do so under applicable law, to inform the Commitment Parties promptly thereof), (iv) following the Closing Date, the existence of this Amended & Restated Commitment Letter and information about the Incremental Term Loan Facility to market data collectors, similar services providers to the lending industry, and service providers to the Commitment Parties and the Lenders in connection with the administration and management of the Incremental Term Loan Facility and (v) the information contained in Annex A to Moody’s and S&P; provided that such information is supplied to Moody’s and S&P only on a confidential basis after consultation with the Commitment Parties.

 

Each Commitment Party agrees that it will treat as confidential, and use only for purposes of the transactions contemplated hereby, all information provided to it hereunder by or on behalf of you, the Target or any of your or their respective subsidiaries or affiliates; provided, however, that nothing herein will prevent the Commitment Parties or any of the Commitment Parties’ respective affiliates from

 

7

 

disclosing, or using, any such information (a) pursuant to the order of any court or administrative agency or in any pending legal or administrative proceeding, or otherwise as required by applicable law or compulsory legal process (in which case such person agrees to inform you promptly thereof to the extent not prohibited by law), (b) upon the request or demand of any regulatory authority purporting to have jurisdiction over such person or any of its affiliates (in which case, other than in the case of regulatory examinations, such person agrees to inform you promptly thereof to the extent not prohibited by law), (c) to the extent that such information is publicly available or becomes publicly available other than by reason of disclosure by such Commitment Party or any of the persons described in clause (d) of this sentence in breach of this Amended & Restated Commitment Letter, (d) to such person’s affiliates and their respective officers, directors, partners, members, employees, legal counsel, independent auditors and other experts or agents who need to know such information and on a confidential basis, (e) to potential and prospective Lenders, participants and any direct or indirect contractual counterparties to any swap or derivative transaction relating to the Borrower, any Guarantor or their respective obligations under the Incremental Term Loan Facility, in each case, who are advised of the confidential nature of such information, (f) to Moody’s and S&P and other rating agencies or to market data collectors as determined by the Commitment Parties; provided that such information is limited to Annex A and is supplied only on a confidential basis, (g) received by such person on a non-confidential basis from a source (other than you, the Target or any of your or their affiliates, advisors, members, directors, employees, agents or other representatives) not known by such person to be prohibited from disclosing such information to such person by a legal, contractual or fiduciary obligation, (h) to the extent that such information was already in such Commitment Party’s possession or is independently developed by such Commitment Party, without use of information otherwise subject hereto or (i) for purposes of establishing a “due diligence” defense; provided that (x) the disclosure of any such information to any potential or prospective Lenders or participants referred to in clause (e) above shall be made subject to the acknowledgment and acceptance by such prospective Lender or participant that such information is being disseminated on a confidential basis (on substantially similar terms set forth in this paragraph or as is otherwise reasonably acceptable to you and the Commitment Parties, including, without limitation, as agreed in any marketing materials) in accordance with the standard syndication processes of the Lead Arrangers or in respect of marketing materials and related written materials distributed through the Platform, shall in any event require “click through” or other affirmative actions on the part of the recipient to access such information and (y) no such disclosure shall be made by the Commitment Parties to any Disqualified Institution.  Each Commitment Party’s obligations under this provision shall remain in effect until the earlier of (i) one year from the Original Commitment Letter Date and (ii) the date the definitive Loan Documents are entered into by such Commitment Party, at which time any confidentiality undertaking in the definitive Loan Documents shall supersede this provision.

 

8.                                      Absence of Fiduciary Relationship; Affiliates; Etc.

 

As you know, each Commitment Party (together with their respective affiliates, the “Investment Banks”) is a full service financial institution engaged, either directly or through its affiliates, in a broad array of activities, including commercial and investment banking, financial advisory, market making and trading, investment management (both public and private investing), investment research, principal investment, financial planning, benefits counseling, risk management, hedging, financing, brokerage and other financial and non-financial activities and services globally.  In the ordinary course of its various business activities, each Investment Bank, and funds or other entities in which each Investment Bank invests or with which they co-invest, may at any time purchase, sell, hold or vote long or short positions and investments in securities, derivatives, loans, commodities, currencies, credit default swaps and other financial instruments for its own account and for the accounts of its customers.  In addition, each Investment Bank may at any time communicate independent recommendations and/or publish or express independent research views in respect of such assets, securities or instruments.  Any of the aforementioned activities may involve or relate to assets, securities and/or instruments of the Borrower,

 

8

 

the Target and/or other entities and persons which may (i) be involved in transactions arising from or relating to the arrangement contemplated by this Amended & Restated Commitment Letter or (ii) have other relationships with you, the Target or your or its affiliates.  In addition, each Investment Bank may provide investment banking, commercial banking, underwriting and financial advisory services to such other entities and persons.  The arrangement contemplated by this Amended & Restated Commitment Letter may have a direct or indirect impact on the investments, securities or instruments referred to in this paragraph, and employees working on the financing contemplated hereby may have been involved in originating certain of such investments and those employees may receive credit internally therefor.  Although an Investment Bank in the course of such other activities and relationships may acquire information about the transaction contemplated by this Amended & Restated Commitment Letter or other entities and persons which may be the subject of the financing contemplated by this Amended & Restated Commitment Letter, no Investment Bank shall have any obligation to disclose such information, or the fact that such Investment Bank is in possession of such information, to you or to use such information on your behalf.

 

Consistent with the Investment Banks’ policies to hold in confidence the affairs of its customers, no Investment Bank will furnish confidential information obtained from you by virtue of the transactions contemplated by this Amended & Restated Commitment Letter to any of its other customers.  Furthermore, you acknowledge that no Investment Bank or any of their respective affiliates has an obligation to use in connection with the transactions contemplated by this Amended & Restated Commitment Letter, or to furnish to you, confidential information obtained or that may be obtained by it from any other person.

 

The Investment Banks may have economic interests that conflict with those of the Borrower, the Target, your or their equity holders and/or your or their affiliates.  You agree that each Investment Bank will act under this Amended & Restated Commitment Letter as an independent contractor and that nothing in this Amended & Restated Commitment Letter, the Fee Letter or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between any Investment Bank, on the one hand, and you, your equity holders or your affiliates, on the other hand.  You acknowledge and agree that the transactions contemplated by this Amended & Restated Commitment Letter and the Fee Letter (including the exercise of rights and remedies hereunder and thereunder) are arm’s-length commercial transactions between such Investment Bank, on the one hand, and you, on the other, and in connection therewith and with the process leading thereto, (i) no Investment Bank has assumed an advisory or fiduciary responsibility in favor of you, your equity holders or your affiliates with respect to the transactions contemplated hereby (or the exercise of rights or remedies with respect thereto) or the process leading thereto (irrespective of whether any Investment Bank has advised, is currently advising or will advise you, your equity holders or your affiliates on other matters) or any other obligation to you except the obligations expressly set forth in this Amended & Restated Commitment Letter and the Fee Letter and (ii) each Investment Bank is acting solely as a principal and not as an agent or fiduciary of the Borrower, your management, equity holders, affiliates, creditors or any other person.  The Borrower acknowledges and agrees that it has consulted its own legal and financial advisors to the extent it deemed appropriate and that it is responsible for making its own independent judgment with respect to such transactions and the process leading thereto.  The Borrower agrees that it will not claim that any Investment Bank has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to it, in connection with such transactions or the process leading thereto.  In addition, each Commitment Party may employ the services of its affiliates in providing services and/or performing its or their obligations hereunder and may exchange with such affiliates information concerning you, your affiliates, the Target and other companies that may be the subject of this arrangement, and such affiliates of such Commitment Party will be entitled to the benefits afforded to such Commitment Party hereunder.

 

In addition, please note that the Investment Banks do not provide accounting, tax or legal advice.

 

9

 

9.                                      Miscellaneous.

 

The Commitment Parties’ commitments and agreements hereunder will terminate upon the first to occur of (i) the consummation of the Acquisition, (ii) the date of termination of the Acquisition Agreement and (iii) June 18, 2019, in each case, unless the closing of the Incremental Term Loan Facility, on the terms and subject to the conditions contained herein, has been consummated on or before such date.  You may terminate this Amended & Restated Commitment Letter and our commitments hereunder at any time without penalty or obligation, subject to the provisions of the immediately succeeding paragraph.

 

The provisions set forth under Sections 3, 4, 5, 7 (limited to the first paragraph thereof) and 8 hereof and this Section 9 (other than any provision therein that expressly terminates upon execution of the definitive Loan Documents) and the provisions of the Fee Letter will remain in full force and effect regardless of whether definitive Loan Documents are executed and delivered.  The provisions set forth in the Fee Letter and under Sections 5, 7 and 8 hereof and this Section 9 will remain in full force and effect notwithstanding the expiration or termination of this Amended & Restated Commitment Letter or the Commitment Parties’ commitments and agreements hereunder. Notwithstanding the previous two sentences, if definitive Loan Documents are executed and delivered, the provisions of Section 5, and the second paragraph of Section 7 shall be superseded to the extent covered by the corresponding provisions of the Loan Documents and shall no longer be of any further force or effect.

 

Each of the parties hereto agrees that this Amended & Restated Commitment Letter is a binding and enforceable agreement with respect to the subject matter contained herein, including an agreement to negotiate promptly in good faith the Loan Documents by the parties hereto in a manner consistent with this Amended & Restated Commitment Letter, it being acknowledged and agreed that the commitments provided hereunder are subject to the conditions precedent expressly described in Annex B.  Reasonably promptly after the execution of this Amended & Restated Commitment Letter, the parties hereto shall proceed with the negotiation of the Loan Documents for the purpose of executing and delivering the Loan Documents no later than the consummation of the Acquisition.

 

Each party hereto, for itself and its affiliates, agrees that any suit or proceeding arising in respect of this Amended & Restated Commitment Letter or the Commitment Parties’ commitments or agreements hereunder or under the Fee Letter will be tried exclusively in any Federal court of the United States of America sitting in the Borough of Manhattan or in any state court located in the City and County of New York, and each party hereto hereby submits to the exclusive jurisdiction of, and to venue in, such court.  Any right to trial by jury with respect to any action or proceeding arising in connection with or as a result of either the Commitment Parties’ commitments or agreements or any matter referred to in this Amended & Restated Commitment Letter or the Fee Letter is hereby waived by the parties hereto.  Each party hereto, for itself and its affiliates, agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.  Service of any process, summons, notice or document by registered mail or overnight courier addressed to any of the parties hereto at the addresses above shall be effective service of process against such party for any suit, action or proceeding brought in any such court.  This Amended & Restated Commitment Letter and the Fee Letter will be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws.

 

The Commitment Parties hereby notify the Borrower that pursuant to the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”) the Commitment Parties and each Lender may be required to obtain, verify and record information that identifies the Borrower and each of the Guarantors, which information includes the name and address of the Borrower and each of the Guarantors and other information that will allow the Commitment Parties

 

10

 

and each Lender to identify the Borrower and each of the Guarantors in accordance with the Patriot Act.  This notice is given in accordance with the requirements of the Patriot Act and is effective for the Commitment Parties and each Lender.

 

This Amended & Restated Commitment Letter may be executed in any number of counterparts, each of which when executed will be an original, and all of which, when taken together, will constitute one agreement.  Delivery of an executed counterpart of a signature page of this Amended & Restated Commitment Letter by facsimile transmission or electronic transmission (in pdf format) will be effective as delivery of a manually executed counterpart hereof.  This Amended & Restated Commitment Letter and the Fee Letter are the only agreements that have been entered into among the parties hereto with respect to the Incremental Term Loan Facility and set forth the entire understanding of the parties with respect thereto and supersede any prior written or oral agreements among the parties hereto with respect to the Incremental Term Loan Facility.

 

Please confirm that the foregoing is in accordance with your understanding by signing and returning to the Commitment Parties the enclosed copy of this Amended & Restated Commitment Letter, together, if not previously executed and delivered, with the Fee Letter before 11:59 p.m. New York City time on September 24, 2018, whereupon this Amended & Restated Commitment Letter and the Fee Letter will become binding agreements between you and the Commitment Parties.  If this Amended & Restated Commitment Letter and the Fee Letter have not been signed and returned as described in the preceding sentence by such date, this offer will terminate on such date.  We look forward to working with you on this transaction.

 

[Remainder of page intentionally left blank]

 

11

 

	
 
    	
Very truly yours,
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
ROYAL BANK OF CANADA
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ James S. Wolfe
    
	
 
    	
 
    	
Name: James S. Wolfe
    
	
 
    	
 
    	
Title: Managing   Director, Head of Global Leveraged Finance
    

 

Signature Page to Project Patriot A&R Commitment Letter

 

 

	
 
    	
BARCLAYS BANK PLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Jeremy Hazan
    
	
 
    	
 
    	
Name: Jeremy Hazan
    
	
 
    	
 
    	
Title: Managing   Director
    

 

Signature Page to Project Patriot A&R Commitment Letter

 

 

Accepted and agreed as of the date first written above:

 

	
VICTORY CAPITAL   HOLDINGS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ Terrence Sullivan
    	
 
    
	
 
    	
Name: Terrence Sullivan
    	
 
    
	
 
    	
Title: Chief Financial   Officer
    	
 
    

 

Signature Page to Project Patriot A&R Commitment Letter

 

 

Annex A

 

Summary of the Incremental Term Loan Facility

 

This Summary outlines certain terms of the Incremental Term Loan Facility referred to in the Amended & Restated Commitment Letter, of which this Annex A is a part.  Certain capitalized terms used herein are defined in the Amended & Restated Commitment Letter.

 

	
Borrower:
    	
 
    	
Victory Capital Holdings, Inc., a Delaware   corporation (the “Borrower”).
    
	
 
    	
 
    	
 
    
	
Guarantors:
    	
 
    	
Each of the Borrower’s existing and subsequently   acquired or organized domestic subsidiaries party to a Loan Guaranty (as   defined in the Existing Credit Agreement) (collectively, the “Guarantors”) will guarantee (the “Guarantee”)   all obligations under the Incremental Term Loan Facility on an equal and   ratable basis with all other Secured Obligations (as defined in the Existing   Credit Agreement) (it being understood and agreed that the Target and its   subsidiaries shall provide guaranties of the obligations under the Existing   Credit Agreement on the terms provided (and to the extent required) by Section 5.11   of the Existing Credit Agreement and the definition of “Permitted   Acquisition” in the Existing Credit Agreement).
    
	
 
    	
 
    	
 
    
	
Purpose/Use of Proceeds:
    	
 
    	
The proceeds of the Incremental Term Loan Facility   will be used to fund, in part, the Acquisition and the payment of fees,   commissions and expenses in connection with the Acquisition and the   Incremental Term Loan Facility.
    
	
 
    	
 
    	
 
    
	
Joint Lead Arrangers and
    	
 
    	
 
    
	
Joint Bookrunners:
    	
 
    	
RBC Capital Markets, LLC (“RBCCM”)   and Barclays Bank PLC (“Barclays”) (in their capacities as joint lead   arrangers and bookrunners, the “Lead Arrangers”).
    
	
 
    	
 
    	
 
    
	
Administrative
    	
 
    	
 
    
	
Agent:
    	
 
    	
Royal Bank of Canada (in such capacity, the “Administrative Agent”).
    
	
 
    	
 
    	
 
    
	
Lenders:
    	
 
    	
Royal Bank and/or other financial institutions   selected by the Lead Arrangers, with the consent of the Borrower (such   consent not to be unreasonably withheld or delayed) (each, a “Lender” and, collectively, the “Lenders”),   excluding Disqualified Institutions.
    
	
 
    	
 
    	
 
    
	
Amount of
    	
 
    	
 
    
	
Incremental Term
    	
 
    	
 
    
	
Loan Facility:
    	
 
    	
$265.0 million of senior secured incremental first   lien term loans (the “Incremental Term Loans”)   to be made available to the Borrower pursuant to Section 2.22 of the   Existing Credit Agreement; provided, that the amount of Incremental Term   Loans funded on the Closing Date shall not exceed the Incremental Cap (as   defined in the Existing Credit Agreement). For the avoidance of doubt, for   purposes of the
    

 

Annex A-1

 

	
 
    	
 
    	
foregoing, clause (c) of the definition of   “Incremental Cap” shall be computed, pursuant to the terms of the Existing   Credit Agreement, using the First Lien Leverage Ratio calculated on a Pro   Forma Basis for the most recently ended Test Period as of the date hereof.
    
	
 
    	
 
    	
 
    
	
Availability:
    	
 
    	
The Incremental Term Loans shall be available in a   single drawing on the Closing Date.
    
	
 
    	
 
    	
 
    
	
Maturity:
    	
 
    	
The final maturity of the Incremental Term Loan   Facility shall be the same as the Initial Term Loan Maturity Date,   February 12, 2025 (the “Maturity Date”).
    
	
 
    	
 
    	
 
    
	
Closing Date:
    	
 
    	
The date on which the borrowings under the   Incremental Term Loan Facility are made and the Acquisition is consummated   (the “Closing Date”).
    
	
 
    	
 
    	
 
    
	
Amortization:
    	
 
    	
The outstanding principal amount of the Incremental   Term Loan Facility will be payable in equal quarterly amounts aggregating 1% per annum, with the remaining balance due on the Maturity   Date, as may be adjusted in such a manner as is required to keep any loans   under the Incremental Term Loan Facility fungible with the Initial Term   Loans.
    
	
 
    	
 
    	
 
    
	
Interest Rate:
    	
 
    	
All amounts outstanding under the Incremental Term   Loan Facility will bear interest, at the Borrower’s option, as follows:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(a)                                 at the Alternate   Base Rate plus 1.75% per annum; or
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
(b)                                 at   the LIBO Rate plus 2.75% per annum   (the foregoing clauses (a) and (b), the “Applicable   Rate”).
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
As used herein, the terms “Alternate   Base Rate” and “LIBO Rate”   are used as defined in the Existing Credit Agreement, and the basis for   calculating accrued interest and the interest periods for loans bearing   interest at LIBO Rate will be in accordance with the terms of the Existing   Credit Agreement subject to a LIBO Rate “floor” of 0% for the Incremental   Term Loan Facility.
    
	
 
    	
 
    	
 
    
	
Voluntary Prepayments:
    	
 
    	
Voluntary prepayments of the Incremental Term Loans   may be made on the same terms provided for the Term Loans under and as   defined in the Existing Credit Agreement, subject to the “Call Premium” set   forth below.
    
	
 
    	
 
    	
 
    
	
Mandatory Prepayments:
    	
 
    	
Mandatory prepayments of Incremental Term Loans   shall be required, and shall be applied, in the manner currently provided for   the Term Loans under and as defined in the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Call Premium:
    	
 
    	
In the event that, on or prior to the date that is   six months following the Closing Date, (A) any loans under the Existing   Term Loan Facility (“Initial Term Loans”)   or Incremental Term Loans are refinanced in a Repricing Transaction, or   (B) any amendment, waiver or other
    

 

Annex A-2

 

	
 
    	
 
    	
modification of or to the Existing Credit Agreement   is effected that constitutes a Repricing Transaction, the Borrower shall pay   to the Administrative Agent, for the ratable account of each of the   applicable lenders (in each case, including in connection with any mandatory   assignment), (I) in the case of clause (A), a premium of 1.00% of the   aggregate principal amount of the Initial Term Loans and/or Incremental Term   Loans so refinanced and (II) in the case of clause (B), a fee equal to   1.00% of the aggregate principal amount of the Initial Term Loans and/or   Incremental Term Loans that are the subject of such Repricing Transaction   outstanding immediately prior to such Repricing Transaction.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
“Repricing Transaction”   shall have the meaning assigned to such term in the Existing Credit Agreement   (including with respect to exclusions for Change of Control, Qualifying IPO   and Transformative Acquisitions), with modifications to include the   Incremental Term Loans as Initial Term Loans thereunder
    
	
 
    	
 
    	
 
    
	
Security:
    	
 
    	
The Incremental Term Loan Facility and the   guarantees thereof as described above shall be required to be secured   pursuant to the Collateral Documents (as defined in the Existing Credit   Agreement) on a pari passu basis with all other   Secured Obligations (as defined in the Existing Credit Agreement) under the   Security Agreement (as defined in the Existing Credit Agreement) (it being   understood that the Target and its subsidiaries shall pledge Collateral (as   defined in the Existing Credit Agreement) to secure their guaranties of the   obligations under the Existing Credit Agreement on the terms provided (and to   the extent required) by Section 5.11 of the Existing Credit Agreement   and the definition of “Permitted Acquisition” in the Existing Credit   Agreement).
    
	
 
    	
 
    	
 
    
	
Representations and
    	
 
    	
 
    
	
Warranties:
    	
 
    	
Identical to those contained in the Existing Credit   Agreement.
    
	
 
    	
 
    	
 
    
	
Covenants:
    	
 
    	
The definitive Facility Documents for the   Incremental Term Loan Facility will contain affirmative and negative   covenants identical to those contained in the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Events of Default:
    	
 
    	
Identical to those contained in the Existing Credit   Agreement.
    
	
 
    	
 
    	
 
    
	
Conditions Precedent to Initial
    	
 
    	
 
    
	
Borrowings:
    	
 
    	
The several obligations of the Lenders to make, or   cause one of their respective affiliates to make, loans under the Incremental   Term Loan Facility on the Closing Date will be subject only to the conditions   precedent listed on Annex B attached to the Commitment Letter.
    
	
 
    	
 
    	
 
    
	
Assignments and Participations:
    	
 
    	
The Borrower may not assign its rights or   obligations under the Incremental Term Loan Facility. Following the funding   of the Incremental Term Loans on the Closing Date, any Lender may assign, and   may sell participations in, its rights and obligations under the Incremental   Term Loan Facility on the same basis as is currently
    

 

Annex A-3

 

	
 
    	
 
    	
provided for the Term Loans under and as defined in   the Existing Credit Agreement.
    
	
 
    	
 
    	
 
    
	
Jurisdiction:
    	
 
    	
The Incremental Term Loan Facility will provide that   the Borrower and the Guarantors will submit to the exclusive jurisdiction and   venue of the federal and state courts of the State of New York (except to the   extent the Administrative Agent or any Lender requires submission to any   other jurisdiction in connection with the exercise of any rights under any   security document or the enforcement of any judgment) and will waive any   right to trial by jury. New York law will govern the Loan Documents, except   with respect to certain security documents where applicable local law is   necessary for enforceability or perfection.
    
	
 
    	
 
    	
 
    
	
EU Bail-In Provisions:
    	
 
    	
The Incremental Term Loan Facility will be subject   to Section 9.23 of the Existing Credit Agreement in all respects.
    
	
 
    	
 
    	
 
    
	
Counsel to the Lead Arrangers:
    	
 
    	
Paul Hastings LLP.
    

 

Annex A-4

 

Annex B

 

Summary of Conditions Precedent to the Incremental Term Loan Facility

 

This Summary of Conditions Precedent outlines certain of the conditions precedent to the Incremental Term Loan Facility referred to in the Amended & Restated Commitment Letter, of which this Annex B is a part.  Certain capitalized terms used herein are defined in the Amended & Restated Commitment Letter.

 

1.                                      Acquisition.  The proceeds from borrowings made on the Closing Date pursuant to the Incremental Term Loan Facility, together with other available cash resources, will be sufficient to pay the cash consideration for the Acquisition and all related fees, commissions and expenses.  The Acquisition shall have been consummated pursuant to the Purchase Agreement, dated as of the Original Commitment Letter Date (including the exhibits, annexes and schedules thereto, the “Acquisition Agreement”), among the Borrower, Harvest Volatility Management, LLC, a Delaware limited liability company, the persons listed on Annex A thereto (collectively, the “Members” and each, individually, a “Member”) and Curtis F. Brockelman, Jr. and LPC Harvest, LP each solely in their joint capacity as Members’ Representative (as defined therein), without giving effect to any modifications, consents, amendments or waivers thereto that are materially adverse to the Lenders or the Lead Arrangers unless consented to by the Lead Arrangers (such consent not to be unreasonably withheld, conditioned or delayed); it being understood that (i) any change in the purchase price made in accordance with the provisions of the Acquisition Agreement (as in effect on the Original Commitment Letter Date) will not be deemed materially adverse to the Lenders or the Lead Arrangers, (ii) any decrease in the purchase price will not be deemed materially adverse to the Lenders or the Lead Arrangers so long as any such reduction is applied to reduce the commitments under the Incremental Term Loan Facility on a dollar for dollar basis and (iii) any substantive modification, consent, amendment or waiver of the definition of “Company Material Adverse Effect” shall be deemed materially adverse to the Lenders and the Lead Arrangers.

 

2.                                      Refinancing.  Concurrently with the consummation of the Acquisition, all pre-existing indebtedness of the Target and its subsidiaries shall have been repaid or repurchased in full, all commitments relating thereto shall have been terminated, and all liens or security interests related thereto shall have been terminated or released, in each case on terms reasonably satisfactory to the Lead Arrangers other than (x) any indebtedness of the Target or its subsidiaries and liens on assets of the Target or its subsidiaries, in each case, that are permitted to remain outstanding pursuant to the Acquisition Agreement, and (y) any other indebtedness and liens approved by the Lead Arrangers in their reasonable discretion (the “Refinancing”), and no new indebtedness shall be incurred on the Closing Date by the Borrower, the Target or their respective subsidiaries other than the Incremental Term Loan Facility.

 

3.                                      Financial Information.  The Lead Arrangers shall have received (i) the audited consolidated balance sheet of the Target and its subsidiaries as of, and the related consolidated statements of income, retained earnings and cash flows for (a) the years ended December 31, 2016 and December 31, 2017 (it being acknowledged that the Lead Arrangers have received the required financial statements of the Target and its subsidiaries required pursuant to this clause (i)(a)) and (b) each subsequent fiscal year ended at least 120 days prior to the Closing Date and (ii) the unaudited consolidated balance sheet of the Target and its subsidiaries as of, and the related unaudited statements of income, retained earnings and cash flows, respectively, for each fiscal quarter (other than the fourth fiscal quarter) ended after the date of the most recent audited financial statements described in clause (i)(a) and at least 45 days prior to the Closing Date (it being acknowledged that the Lead Arrangers have received the required financial statements of

 

Annex B-1

 

the Target and its subsidiaries required pursuant to this clause (ii) for the fiscal quarters ended March 31, 2018 and June 30, 2018).

 

4.                                      Pro Forma Financial Statements.  The Lead Arrangers shall have received a pro forma consolidated balance sheet, and related pro forma consolidated statement of operations, of the Borrower and its subsidiaries as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days (or 90 days in case such four-fiscal quarter period is the end of the Borrower’s fiscal year) prior to the Closing Date, prepared in good faith after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of the statement of operations); provided that no such pro forma financial statement shall be required to (x) include adjustments for purchase accounting (including adjustments of the type contemplated by the Financial Accounting Standards Board Accounting Standards Codification 805, Business Combinations (formerly SFAS 141R)) or (y) be prepared in compliance with Regulation S-X of the Securities Act.

 

5.                                      Material Adverse Effect.  Since the Original Commitment Letter Date, there shall have been no Company Material Adverse Effect (as defined in the Acquisition Agreement).

 

6.                                      Payment of Fees.  To the extent required to be paid on the Closing Date by the Amended & Restated Commitment Letter or the Fee Letter, all fees payable to the Commitment Parties, the Administrative Agent or the Lenders and all expenses (including legal fees and expenses) of the Lead Arrangers and the Administrative Agent in connection with the Transactions shall have been paid to the extent invoiced in reasonable detail at least two business days prior to the Closing Date.

 

7.                                      Minimum Marketing Period.  The Borrower shall provide the Lead Arrangers with a period of at least 15 consecutive business days following receipt of the financial information set forth in paragraphs 3 and 4 above (the “Marketing Period”); provided that (a) if the Marketing Period has not ended by December 14, 2018, it shall not begin before January 2, 2019 and (b) the Marketing Period will exclude November 23, 2018 as a business day.  If at any time the Borrower in good faith reasonably believes that it has delivered the financial information set forth in paragraphs 3 and 4 above, it shall deliver to the Lead Arrangers written notice to that effect, stating when it believes it completed such delivery and the date of commencement of the Marketing Period (which date of commencement shall not be earlier than the date of delivery of such notice) (such notice, the “Marketing Period Notice”).  The Marketing Period shall commence on the date specified in the Marketing Period Notice, unless the Lead Arrangers in good faith reasonably believe that the Borrower has not completed delivery of such information and, within two business days after its receipt of the Marketing Period Notice, the Lead Arrangers deliver a written notice to the Borrower to that effect (stating with specificity which information has not been delivered).

 

8.                                      Customary Closing Documents.  The Administrative Agent shall have received (in each case subject to the Limited Conditionality Provisions): (i) delivery of execution copies of the Facility Documents as executed by the parties thereto (it being understood that, in the case of the Target and its subsidiaries, the Facility Documents shall be executed thereby, delivered to the Administrative Agent in escrow and available for delivery concurrently with the consummation of the Acquisition) and including all documents and instruments required to create and perfect the Administrative Agents’ security interests in the Collateral and, if applicable, be in proper form for filing; (ii) customary legal opinions from counsel to the Loan Parties; (iii) customary corporate records and documents from public officials; (iv) customary lien searches for the Loan Parties;

 

Annex B-2

 

(v) customary officer’s certificates, including with respect to compliance with the requirements set forth in Section 2.22(a) of the Existing Credit Agreement; (vi) customary evidence of corporate authority with respect to officers executing the Facility Documents for the Loan Parties; (vii) a solvency certificate from the chief financial officer of the Borrower in substantially the form set forth in Exhibit M to the Existing Credit Agreement (with appropriate modifications to refer to the Incremental Term Loans and the Transactions), certifying that the Borrower and its subsidiaries are, on a consolidated basis, solvent; and (viii) a customary notice of borrowing.

 

9.                                      Certain Information. The Administrative Agent will have received at least three (3) business days prior to the Closing Date all documentation and other information about the Borrower, the Target and any subsidiaries of the Target that will become a Borrower or Guarantor under the Incremental Term Loan Facility required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the Patriot Act, to the extent requested from the Borrower at least ten (10) business days prior to the Closing Date.

 

10.                               Representations and Warranties.  On the Closing Date, (i) the Specified Acquisition Agreement Representations shall be accurate in all material respects (without duplication of any materiality qualifier set forth therein) to the extent provided in the Limited Conditionality Provisions, and (ii) the Specified Representations shall be accurate in all material respects (without duplication of any materiality qualifier set forth therein).

 

11.                               No Event of Default. No Event of Default under Section 7.01(a), (f) or (g) of the Existing Credit Agreement shall have occurred and be continuing or would result therefrom.

 

Annex B-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00287-of-00352.parquet"}]]