Document:

Exhibit 10.2 

CHANGE
IN TERMS AGREEMENT

 

	Principal	Loan
    Date	Maturity	Loan
    No	Call
    / Coll	Account	Officer	Initials
	$2,500,000.00	12-18-2018	12-18-2019	15695	4A/C49	***	KPD	 
	References
    in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan
    or item.
	Any item
    above containing “***” has been omitted due to text length limitations.

 

	Borrower:	Electromed, Inc.	 	Lender:	Choice Financial Group
	 	500 6th Ave NW	 	 	Golden Valley
	 	New Prague, MN   56071-1134	 	 	6210 Wayzata Boulevard
	 	 	 	 	Golden Valley, MN 55416
	 	 	 	 	(763) 398-3333

 

	 	 
	Principal Amount: $2,500,000.00	Date
    of Agreement: December 18, 2018   

  

DESCRIPTION
OF EXISTING INDEBTEDNESS. Promissory Note #15695 dated 12-18-2013 in the original amount of $2,500,000.00 from Borrower to
Choice Financial Group, successor by acquisition and merger with Venture Bank.

 

DESCRIPTION
OF COLLATERAL. :

 

-
All Business Assets per Commercial Security Agreement dated 12-18-2013.

 

DESCRIPTION
OF CHANGE IN TERMS.

 

1).
Extend the Maturity Date to 12-18-2019.

 

2).
Amend Interest Rate to be a variable rate equal to Wall Street Journal minus 1.00%.

 

3).
Add the following financial requirement to the Business Loan Agreement (Asset Based): 

-       Borrower
will provide, as soon as available, but in no event later than one-hundred twenty (120) days after the end of each fiscal year,
a balance sheet and income statement for the year ended, audited by a certified public accountant satisfactory to Lender.

 

4).
Amend the following financial requirements listed in the Business Loan Agreement (Asset Based): 

-       Borrower
will provide, as soon as available, but in no event later than forty-five (45) days after the end of each quarter, Borrower’s
balance sheet and profit and loss statement for the period ended, prepared by Borrower. 

-       Borrower
will provide, as soon as available, but in no event later than forty-five (45) days after the end of each month, Borrower’s
Accounts Receivable Aging report, only when line is in use. 

-       Borrower
will provide, as soon as available, but in no event later than forty-five (45) days after the end of each month, Borrower’s
Collateral Schedule, only when line is in use.

 

5).
Remove the following additional requirement from the Business Loan Agreement (Asset Based): 

-       A
pro-rated non-usage fee of 0.120% based on the average unused portion of the line of credit or $3,000.00, whichever is less, will
be assessed annually at loan maturity.

 

PROMISE
TO PAY. Electromed, Inc. (“Borrower”) promises to pay to Choice Financial Group (“Lender”), or order,
in lawful money of the United States of America, the principal amount of Two Million Five Hundred Thousand & 00/100 Dollars
($2,500,000.00) or so much as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance.
Interest shall be calculated from the date of each advance until repayment of each advance.

 

PAYMENT.
Borrower will pay this loan in full immediately upon Lender’s demand. If no demand is made, Borrower will pay this loan
in one payment of all outstanding principal plus all accrued unpaid interest on December 18, 2019. In addition, Borrower will
pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning January 18, 2019, with all
subsequent interest payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable
law, payments will be applied first to any accrued unpaid interest; then to principal; then to any escrow or reserve account payments
as required under any mortgage, deed of trust, or other security instrument or security agreement securing this Note; and then
to any late charges. Borrower will pay Lender at Lender’s address shown above or at such other place as Lender may designate
in writing.

 

VARIABLE
INTEREST RATE. The interest rate on this loan is subject to change from time to time based on changes in an independent index
which is the Prime Rate as published in the Wall Street Journal (the “Index”). The Index is not necessarily the lowest
rate charged by Lender on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate a substitute
index after notifying Borrower. Lender will tell Borrower the current Index rate upon Borrower’s request. The interest rate
change will not occur more often than each day. Borrower understands that Lender may make loans based on other rates as well.
The Index currently is 5.250% per annum. Interest on the unpaid principal balance of this loan will be calculated as described
in the “INTEREST CALCULATION METHOD” paragraph using a rate of 1.000 percentage point under the Index, resulting in
an initial rate of 4.250%. NOTICE: Under no circumstances will the interest rate on this loan be more than the maximum rate allowed
by applicable law.

 

INTEREST
CALCULATION METHOD. Interest on this loan is computed on a 365/360 basis; that is, by applying the ratio of the interest rate
over a year of 360 days, multiplied by the outstanding principal balance, multiplied by the actual number of days the principal
balance is outstanding. All interest payable under this loan is computed using this method.

 

PREPAYMENT.
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments of accrued unpaid
interest. Rather, early payments will reduce the principal balance due. Borrower agrees not to send Lender payments marked “paid
in full”, “without recourse”, or similar language. If Borrower sends such a payment, Lender may accept it without
losing any of Lender’s rights under this Agreement, and Borrower will remain obligated to pay any further amount owed to
Lender. All written communications concerning disputed amounts, including any check or other payment instrument that indicates
that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions or limitations
or as full satisfaction of a disputed amount must be mailed or delivered to: Choice Financial Group, Golden Valley, 6210 Wayzata
Boulevard Golden Valley, MN 55416.

 

LATE
CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled
payment or $50.00, whichever is greater.

 

INTEREST
AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this loan shall be increased
by adding an additional 6.000 percentage point margin (“Default Rate Margin”). The Default Rate Margin shall also
apply to each succeeding interest rate change that would have applied had there been no default. However, in no event will the
interest rate exceed the maximum interest rate limitations under applicable law. 

 

     

     

    

 

	CHANGE
    IN TERMS AGREEMENT
	Loan No: 15695	(Continued)	Page
    2 
	 	 	 

 

DEFAULT.
Each of the following shall constitute an Event of Default under this Agreement:

 

Payment
Default. Borrower fails to make any payment when due under the Indebtedness.

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this
Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.

 

Default
in Favor of Third Parties. Borrower defaults under any loan, extension of credit, security agreement, purchase or sales agreement,
or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s property or ability
to perform Borrower’s obligations under this Agreement or any of the Related Documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under
this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of
a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or
the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
Indebtedness. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim
which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation
party of any of the Indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes
or disputes the validity of, or liability under, any Guaranty of the Indebtedness evidenced by this Note.

 

Change
In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse
Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or
performance of the Indebtedness is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

Cure
Provisions. If any default, other than a default in payment, is curable and if Borrower has not been given a notice of a breach
of the same provision of this Agreement within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends
written notice to Borrower demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure
requires more than fifteen (15) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient
to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance
as soon as reasonably practical.

 

LENDER’s
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Agreement and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Agreement if Borrower does not pay. Borrower will
pay Lender that amount. This includes, subject to any limits under applicable law, Lender’s reasonable attorneys’ fees and Lender’s
legal expenses, whether or not there is a lawsuit, including reasonable attorneys’ fees, expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), and appeals. If not prohibited by applicable law, Borrower also
will pay any court costs, in addition to all other sums provided by law.

 

JURY
WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either
Lender or Borrower against the other. 

 

GOVERNING
LAW. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the
laws of the State of Minnesota without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in
the State of Minnesota. 

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all
accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff
all sums owing on the indebtedness against any and all such accounts, and, at Lender’s option, to administratively freeze all
such accounts to allow Lender to protect Lender’s charge and setoff rights provided in this paragraph.

 

COLLATERAL.
Borrower acknowledges this Agreement is secured by:

 

-  All
Business Assets per Commercial Security Agreement dated 12-18-2013.

 

LINE
OF CREDIT. This Agreement evidences a revolving line of credit. Advances under this Agreement, as well as directions for payment
from Borrower’s accounts, may be requested orally or in writing by Borrower or by an authorized person. Lender may, but need not,
require that all oral requests be confirmed in writing. Borrower agrees to be liable for all sums either: (A) advanced in accordance
with the instructions of an authorized person or (B) credited to any of Borrower’s accounts with Lender. The unpaid principal
balance owing on this Agreement at any time may be evidenced by endorsements on this Agreement or by Lender’s internal records,
including daily computer print-outs. Lender will have no obligation to advance funds under this Agreement if: (A) Borrower or
any guarantor is in default under the terms of this Agreement or any agreement that Borrower or any guarantor has with Lender,
including any agreement made in connection with the signing of this Agreement; (B) Borrower or any guarantor ceases doing business
or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor’s guarantee of
this Agreement or any other loan with Lender; (D) Borrower has applied funds provided pursuant to this Agreement for purposes
other than those authorized by Lender; or (E) Lender in good faith believes itself insecure.

 

CONTINUING
VALIDITY. Except as expressly changed by this Agreement, the terms of the original obligation or obligations, including all
agreements evidenced or securing the obligation(s), remain unchanged and in full force and effect. Consent by Lender to this Agreement
does not waive Lender’s right to strict performance of the obligation(s) as changed, nor obligate Lender to make any future change
in terms. Nothing in this Agreement will constitute a satisfaction of the obligation(s). It is the intention of Lender to retain
as liable parties all makers and endorsers of the original obligation(s), including accommodation parties, unless a party is expressly
released by Lender in writing. Any maker or endorser, including accommodation makers, will not be released by virtue of this Agreement.
If any person who signed the original obligation does not sign this Agreement below, then all persons signing below acknowledge
that this Agreement is given conditionally, based on the representation to Lender that the non-signing party consents to the changes and provisions of this Agreement or otherwise
will not be released by it. This waiver applies not only to any initial extension, modification or release, but also to all
such subsequent actions.

 

     

     

    

 

	 	CHANGE
    IN TERMS AGREEMENT	 
	Loan No: 15695	(Continued)	Page 3
	 	 	 

 

LOAN
AGREEMENT. A Loan Agreement is attached to this Promissory Note.

 

SUCCESSORS
AND ASSIGNS. Subject to any limitations stated in this Agreement on transfer of Borrower’s interest, this Agreement shall
be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Collateral becomes
vested in a person other than Borrower, Lender, without notice to Borrower, may deal with Borrower’s successors with reference
to this Agreement and the Indebtedness by way of forbearance or extension without releasing Borrower from the obligations of this
Agreement or liability under the Indebtedness.

 

NOTIFY
US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING AGENCIES. Please notify us if we report any inaccurate information
about your account(s) to a consumer reporting agency. Your written notice describing the specific inaccuracy(ies) should be sent
to us at the following address: Choice Financial Group, Golden Valley, 6210 Wayzata Boulevard, Golden Valley, MN 55416.

 

MISCELLANEOUS
PROVISIONS. This Agreement is payable on demand. The inclusion of specific default provisions or rights of Lender shall not
preclude Lender’s right to declare payment of this Agreement on its demand. If any part of this Agreement cannot be enforced,
this fact will not affect the rest of the Agreement. Lender may delay or forgo enforcing any of its rights or remedies under this
Agreement without losing them. In addition, Lender shall have all the rights and remedies provided in the related documents or
available at law, in equity, or otherwise. Except as may be prohibited by applicable law, all of Lender’s rights and remedies
shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude
pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Borrower shall
not affect Lender’s right to declare a default and to exercise its rights and remedies. Borrower and any other person who signs,
guarantees or endorses this Agreement, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor.
Upon any change in the terms of this Agreement, and unless otherwise expressly stated in writing, no party who signs this Agreement,
whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair,
fail to realize upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary by Lender
without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the consent of
or notice to anyone other than the party with whom the modification is made. The obligations under this Agreement are joint and
several.

 

SECTION
DISCLOSURE. To the extent not preempted by federal law, this loan is made under Minnesota Statutes, Section 334.01.

 

PRIOR
TO SIGNING THlS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THlS AGREEMENT, INCLUDING THE VARIABLE INTEREST
RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE AGREEMENT. 

 

BORROWER:

 

ELECTROMED,
INC. 

	 	 	 
	By:	 /s/ Jeremy Brock	 
	 	Jeremy Brock, Chief Financial Officer of Electromed,
    Inc.	 
	 	 	 
	LENDER:	 
	 	 	 
	CHOICE FINANCIAL GROUP	 
	 	 	 
	X	 /s/ Kevin P Doyle	 
	 	Kevin P Doyle, VP Commercial Loan Officer	 
	 	 	 

LaserPro,
Ver. 18.2.0.027 Copr. Finastra USA Corporation 1997, 2018.    All Rights Reserved.   - MN   Z:\CFI\LPL\D20C.FC   
TR-492   PR-2Exhibit 10.12

 

SEPARATION AGREEMENT AND RELEASE

 

This Separation Agreement
and Release (“Agreement”) is made by and between Stephen J. McAndrew, Ph.D. (“Employee”) and Oncobiologics,
Inc. (the “Company”) (collectively referred to as the “Parties” or individually referred to as a “Party”).

 

RECITALS

 

WHEREAS, Employee was employed
by the Company;

 

WHEREAS, Employee signed
an Executive Employment Agreement with the Company on or about February 19, 2016 (the “Employment Agreement”);

 

WHEREAS, Employee signed
an Employee Proprietary Information, Inventions, Non-Competition and Non-Solicitation Agreement with the Company on February 26,
2016 (the “Confidentiality Agreement”);

 

WHEREAS, Employee is separating
from employment with the Company effective November 9, 2018 (the “Separation Date”);

 

WHEREAS, the Parties wish
to resolve any and all disputes, claims, complaints, grievances, charges, actions, petitions, and demands that the Employee may
have against the Company and any of the Releasees as defined below, including, but not limited to, any and all claims arising out
of or in any way related to Employee’s employment with or separation from the Company;

 

NOW, THEREFORE, in consideration
of the mutual promises made herein, the Company and Employee hereby agree as follows:

 

COVENANTS

 

1.           Consideration.
In consideration of Employee’s execution of this Agreement and Employee’s fulfillment of all of its terms and conditions,
and provided that Employee does not revoke the Agreement under Section 5 below, the Company agrees as follows:

 

a.       Cash
Consideration. The Company will make severance payments to Employee in the form of continuation of Employee’s base salary
in effect on the Separation Date for the equivalent of nine (9) months following the Separation Date (the “Salary Continuation”).
These payments will be subject to standard payroll deductions and withholdings and will be made on the Company’s ordinary
payroll dates, provided that the first payment shall be made on the date that is sixty (60) days following the Separation Date
(the “Severance Pay Commencement Date”), provided the Company has received the executed Agreement from Employee on
or before that date. On the Severance Pay Commencement Date, the Company will pay in a lump sum the aggregate amount of the Salary
Continuation under this Section 1(a) that the Company would have paid Employee through such date had the payments commenced on
the Separation Date through the Severance Pay Commencement Date, with the balance paid thereafter on the applicable schedule described
above.

 

b.       COBRA.
If Employee timely elects continued coverage under COBRA for himself and his covered dependents under the Company’s group
health plans following the Separation Date, then the Company will pay, as and when due to the insurance carrier or COBRA administrator
(as applicable), Employee’s COBRA premiums until the earliest of (A) nine (9) months after the Separation Date (B) the expiration
of Employee’s eligibility for the continuation coverage under COBRA, or (C) the date when Employee becomes eligible for substantially
equivalent health insurance coverage in connection with new employment or self-employment (such period from the termination date
through the earliest of (A) through (C), the “COBRA Payment Period”). Notwithstanding the foregoing, if at any time
the Company determines, in its sole discretion, that the payment of the COBRA premiums would result in a violation of the nondiscrimination
rules of Section 105(h)(2) of the Code or any statute or regulation of similar effect (including but not limited to the 2010 Patient
Protection and Affordable Care Act, as amended by the 2010 Health Care and Education Reconciliation Act), then provided Employee
remains eligible for reimbursement in accordance with this Section 1(b), in lieu of providing the COBRA premiums, the Company will
instead pay Employee on the last day of each remaining month of the COBRA Payment Period, a fully taxable cash payment equal to
the COBRA premiums for that month, subject to applicable tax withholdings for the remainder of the COBRA Payment Period. If Employee
becomes eligible for coverage under another employer's group health plan through self-employment or otherwise ceases to be eligible
for COBRA during the period provided in this clause, Employee must immediately notify the Company of such event, and all payments
and obligations under this clause will cease.

 

    	 	Page 1 of 7	 

     

    

 

c.       Equity
Award Acceleration. You were issued stock options with respect to common stock of the Company pursuant to the Company’s
2015 Equity Incentive Plan (the “Plan”) and stock option grant notices and agreements (the “Grant Agreements”)
that remain outstanding as of the Separation Date as set forth on Exhibit A (the “Equity Awards”). Fifty
percent (50%) of the shares of Company common stock subject to the Equity Awards outstanding as of the Separation Date that were
subject to time-based vesting requirements that have not otherwise vested as of the Separation Date will be deemed vested as of
the Separation Date as set forth on Exhibit A. Vesting of the Equity Awards will otherwise cease as of the Separation
Date, and you will forfeit the Equity Awards with respect to any unvested shares. The Equity Awards will continue to be governed
by the terms of the Plan and the Grant Agreements governing the Equity Awards.

 

d.       General.
Employee acknowledges and agrees that without this Agreement, Employee is otherwise not entitled to the consideration listed in
this Section 1.

 

2.            Benefits.
Employee’s health insurance benefits shall cease on the Separation Date, unless otherwise stated in the Company’s health
insurance plan documents and subject to Employee’s right to continue Employee’s health insurance under COBRA. Employee’s
participation in all benefits and incidents of employment, including, but not limited to, vesting in equity awards, and the accrual
of bonuses, vacation, and paid time off, ceased as of the Separation Date.

 

3.            Payment
of Salary and Receipt of All Benefits. Employee acknowledges and represents that, other than the consideration set forth in
this Agreement, the Company and its agents have paid or provided all salary, wages, bonuses, accrued vacation/paid time off, notice
periods, premiums, leaves, housing allowances, relocation costs, interest, severance, outplacement costs, fees, reimbursable expenses,
commissions, stock, stock options, vesting, and any and all other benefits and compensation due to Employee.

 

4.            Release
of Claims. Employee agrees that the foregoing consideration represents settlement in full of all outstanding obligations owed
to Employee by the Company and its current and former officers, directors, employees, agents, investors, attorneys, shareholders,
administrators, affiliates, benefit plans, plan administrators, professional employer organization or co-employer, insurers, trustees,
divisions, and subsidiaries, and predecessor and successor corporations and assigns (collectively, the “Releasees”).
Employee, on Employee’s own behalf and on behalf of Employee’s respective heirs, family members, executors, agents,
and assigns, hereby and forever releases the Releasees from, and agrees not to sue concerning, or in any manner to institute, prosecute,
or pursue, any claim, complaint, charge, duty, obligation, demand, or cause of action relating to any matters of any kind, whether
presently known or unknown, suspected or unsuspected, that Employee may possess against any of the Releasees arising from any omissions,
acts, facts, or damages that have occurred up until and including the Effective Date of this Agreement, including, without limitation:

 

a.       any
and all claims relating to or arising from Employee’s employment relationship with the Company and the termination of that
relationship;

 

b.       any
and all claims relating to, or arising from, Employee’s right to purchase, or actual purchase of equity in the Company, including,
without limitation, any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty under applicable state corporate
law, and securities fraud under any state or federal law;

 

c.       any
and all claims for wrongful discharge of employment; termination in violation of public policy; discrimination; harassment; retaliation;
breach of contract, both express and implied; breach of covenant of good faith and fair dealing, both express and implied; promissory
estoppel; negligent or intentional infliction of emotional distress; fraud; negligent or intentional misrepresentation; negligent
or intentional interference with contract or prospective economic advantage; unfair business practices; defamation; libel; slander;
negligence; personal injury; assault; battery; invasion of privacy; false imprisonment; conversion; and disability benefits;

 

    	 	Page 2 of 7	 

     

    

 

 

d.       any
and all claims for violation of any federal, state, or municipal statute, including, but not limited to, Title VII of the
Civil Rights Act of 1964; the Civil Rights Act of 1991; the Rehabilitation Act of 1973; the Americans with Disabilities Act of
1990; the Equal Pay Act; the Fair Labor Standards Act; the Fair Credit Reporting Act; the Age Discrimination in Employment Act
of 1967; the Older Workers Benefit Protection Act; the Employee Retirement Income Security Act of 1974; the Worker Adjustment and
Retraining Notification Act; the Family and Medical Leave Act; the Uniformed Services Employment and Reemployment Rights Act; the
New Jersey Law Against Discrimination; the New Jersey Equal Pay Act; the New Jersey Conscientious Employee Protection Act; the
New Jersey Civil Rights Act; the New Jersey Family Leave Act; the New Jersey State Wage and Hour Law; and the New Jersey Wage Withholding
Protection Law.

 

e.       any
and all claims for violation of the federal or any state constitution;

 

f.       any
and all claims arising out of any other laws and regulations relating to employment or employment discrimination;

 

g.       any
claim for any loss, cost, damage, or expense arising out of any dispute over the nonwithholding or other tax treatment of any of
the proceeds received by Employee as a result of this Agreement; and

 

h.       any
and all claims for attorneys’ fees and costs.

 

Employee agrees that the release set forth
in this section shall be and remain in effect in all respects as a complete general release as to the matters released. This release
does not extend to any obligations incurred under this Agreement. This release does not release claims that cannot be released
as a matter of law, including any Protected Activity (as defined below). This release does not extend to any right Employee may
have to unemployment compensation benefits or workers’ compensation benefits. Employee represents that Employee has made
no assignment or transfer of any right, claim, complaint, charge, duty, obligation, demand, cause of action, or other matter waived
or released by this Section.

 

5.            Acknowledgment
of Waiver of Claims under ADEA. Employee acknowledges that Employee is waiving and releasing any rights Employee may have under
the Age Discrimination in Employment Act of 1967 ("ADEA"), and that this waiver and release is knowing and voluntary.
Employee agrees that this waiver and release does not apply to any rights or claims that may arise under the ADEA after the Effective
Date of this Agreement. Employee acknowledges that the consideration given for this waiver and release is in addition to anything
of value to which Employee was already entitled. Employee further acknowledges that Employee has been advised by this writing that:
(a) Employee should consult with an attorney prior to executing this Agreement; (b) Employee has forty-five (45) days within
which to consider this Agreement; (c) Employee has seven (7) days following Employee’s execution of this Agreement to revoke
this Agreement; (d) this Agreement shall not be effective until after the revocation period has expired; and (e) nothing in this
Agreement prevents or precludes Employee from challenging or seeking a determination in good faith of the validity of this waiver
under the ADEA, nor does it impose any condition precedent, penalties, or costs for doing so, unless specifically authorized by
federal law. In the event Employee signs this Agreement and returns it to the Company in less than the 45-day period identified
above, Employee hereby acknowledges that Employee has freely and voluntarily chosen to waive the time period allotted for considering
this Agreement. Employee acknowledges and understands that revocation must be accomplished by a written notification to the undersigned
Company representative that is received prior to the Effective Date. The Parties agree that changes, whether material or immaterial,
do not restart the running of the 45-day period. You further acknowledge that you have received (as Exhibit B hereto) the disclosure
statement required under the ADEA which provides you with additional information regarding the group layoff of which you are a
part (the “ADEA Disclosure Schedule”).

 

6.            No
Pending or Future Lawsuits. Employee represents that Employee has no lawsuits, claims, or actions pending in Employee’s
name, or on behalf of any other person or entity, against the Company or any of the other Releasees. Employee also represents that
Employee does not intend to bring any claims on Employee’s own behalf or on behalf of any other person or entity against
the Company or any of the other Releasees.

 

7.            Application
for Employment. Employee understands and agrees that, as a condition of this Agreement, Employee shall not be entitled to any
employment with the Company, and Employee hereby waives any right, or alleged right, of employment or re-employment with the Company.
Employee further agrees not to apply for employment with the Company and not otherwise pursue an independent contractor or vendor
relationship with the Company.

 

    	 	Page 3 of 7	 

     

    

 

 

8.            Confidentiality.
Employee agrees to maintain in complete confidence the existence of this Agreement, the contents and terms of this Agreement, and
the consideration for this Agreement (hereinafter collectively referred to as “Separation Information”). Except as
required by law, Employee may disclose Separation Information only to Employee’s immediate family members, the Court in any
proceedings to enforce the terms of this Agreement, Employee’s counsel, and Employee’s accountant and any professional
tax advisor to the extent that they need to know the Separation Information in order to provide advice on tax treatment or to prepare
tax returns, and must prevent disclosure of any Separation Information to all other third parties. Employee agrees that Employee
will not publicize, directly or indirectly, any Separation Information.

 

9.            Trade
Secrets and Confidential Information/Company Property. Employee reaffirms and agrees to observe and abide by the terms of the
Confidentiality Agreement, specifically including the provisions therein regarding nondisclosure of the Company’s trade secrets
and confidential and proprietary information and certain restrictions on solicitations and competitive activity. Employee agrees
that the above reaffirmation and agreement with the Confidentiality Agreement shall constitute a new and separately enforceable
agreement to abide by the terms of the Confidentiality Agreement, entered and effective as of the Effective Date. Employee specifically
acknowledges and agrees that any violation of the restrictive covenants in the Confidentiality Agreement and/or this Agreement
shall constitute a material breach of this Agreement. Employee’s signature below constitutes Employee’s certification
under penalty of perjury that Employee has returned all documents and other items provided to Employee by the Company, developed
or obtained by Employee in connection with Employee’s employment with the Company, or otherwise belonging to the Company,
including, but not limited to, all passwords to any software or other programs or data that Employee used in performing services
for the Company.

 

10.          No
Cooperation. Employee agrees that Employee will not knowingly encourage, counsel, or assist any attorneys or their clients
in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints by any third party
against any of the Releasees, unless under a subpoena or other court order to do so or as related directly to the ADEA waiver in
this Agreement. Employee agrees both to immediately notify the Company upon receipt of any such subpoena or court order, and to
furnish, within three (3) business days of its receipt, a copy of such subpoena or other court order. If approached by anyone for
counsel or assistance in the presentation or prosecution of any disputes, differences, grievances, claims, charges, or complaints
against any of the Releasees, Employee shall state no more than that Employee cannot provide counsel or assistance.

 

11.          Nondisparagement.
Employee agrees to refrain from any disparagement, defamation, libel, or slander of any of the Releasees, and agrees to refrain
from any tortious interference with the contracts and relationships of any of the Releasees. The Company agrees to refrain from
any disparagement, defamation, libel, or slander of Employee, and agrees to refrain from any tortious interference with the contracts
and relationships of Employee. The Parties understand and agree that the Company’s obligations under this Agreement apply
to its officers and only for so long as each remains employed by the Company. Employee shall direct any inquiries by potential
future employers to the Company’s human resources department, which shall provide only the Employee’s last position
and dates of employment. Employee’s violation of this provision shall be a material breach of this Agreement.

 

12.          Breach.
In addition to the rights provided in the “Attorneys’ Fees” section below, Employee acknowledges and agrees that
any material breach of this Agreement, unless such breach constitutes a legal action by Employee challenging or seeking a determination
in good faith of the validity of the waiver herein under the ADEA, or of any provision of the Confidentiality Agreement shall entitle
the Company immediately to recover and/or cease providing the consideration provided to Employee under this Agreement and to obtain
damages, except as provided by law, provided, however, that the Company shall not recover One Hundred Dollars ($100.00)
of the consideration already paid pursuant to this Agreement and such amount shall serve as full and complete consideration for
the promises and obligations assumed by Employee under this Agreement and the Confidentiality Agreement.

 

13.          No
Admission of Liability. Employee understands and acknowledges that this Agreement constitutes a compromise and settlement of
any and all actual or potential disputed claims by Employee. No action taken by the Company hereto, either previously or in connection
with this Agreement, shall be deemed or construed to be (a) an admission of the truth or falsity of any actual or potential
claims or (b) an acknowledgment or admission by the Company of any fault or liability whatsoever to Employee or to any third
party.

 

14.          Costs.
The Parties shall each bear their own costs, attorneys’ fees, and other fees incurred in connection with the preparation
of this Agreement.

 

    	 	Page 4 of 7	 

     

    

 

15.         ARBITRATION.
THE PARTIES AGREE THAT ANY AND ALL DISPUTES ARISING OUT OF THE TERMS OF THIS AGREEMENT, THEIR INTERPRETATION, AND ANY OF THE MATTERS
HEREIN RELEASED, SHALL BE SUBJECT TO ARBITRATION IN MIDDLESEX COUNTY, BEFORE THE JUDICIAL ARBITRATION AND MEDIATION SERVICE (“JAMS”)
UNDER ITS COMPREHENSIVE ARBITRATION RULES (“JAMS RULES”) AND NEW JERSEY LAW. THE ARBITRATOR MAY GRANT INJUNCTIONS AND
OTHER RELIEF IN SUCH DISPUTES. THE ARBITRATOR SHALL ADMINISTER AND CONDUCT ANY ARBITRATION IN ACCORDANCE WITH NEW JERSEY LAW, AND
THE ARBITRATOR SHALL APPLY SUBSTANTIVE AND PROCEDURAL NEW JERSEY LAW TO ANY DISPUTE OR CLAIM, WITHOUT REFERENCE TO ANY CONFLICT-OF-LAW
PROVISIONS OF ANY JURISDICTION. TO THE EXTENT THAT THE JAMS RULES CONFLICT WITH NEW JERSEY LAW, NEW JERSEY LAW SHALL TAKE PRECEDENCE.
THE DECISION OF THE ARBITRATOR SHALL BE FINAL, CONCLUSIVE, AND BINDING ON THE PARTIES TO THE ARBITRATION. THE PARTIES AGREE THAT
THE PREVAILING PARTY IN ANY ARBITRATION SHALL BE ENTITLED TO INJUNCTIVE RELIEF IN ANY COURT OF COMPETENT JURISDICTION TO ENFORCE
THE ARBITRATION AWARD. THE PARTIES TO THE ARBITRATION SHALL EACH PAY HALF THE COSTS AND EXPENSES OF SUCH ARBITRATION, AND EACH
PARTY SHALL SEPARATELY PAY FOR ITS RESPECTIVE COUNSEL FEES AND EXPENSES; PROVIDED, HOWEVER, THAT THE ARBITRATOR SHALL AWARD ATTORNEYS’
FEES AND COSTS TO THE PREVAILING PARTY, EXCEPT AS PROHIBITED BY LAW. THE PARTIES AGREE THAT PUNITIVE DAMAGES SHALL BE UNAVAILABLE
IN ARBITRATION. THE PARTIES HEREBY AGREE TO WAIVE THEIR RIGHT TO HAVE ANY DISPUTE BETWEEN THEM RESOLVED IN A COURT OF LAW BY A
JUDGE OR JURY. NOTWITHSTANDING THE FOREGOING, THIS SECTION WILL NOT PREVENT EITHER PARTY FROM SEEKING INJUNCTIVE RELIEF (OR ANY
OTHER PROVISIONAL REMEDY) FROM ANY COURT HAVING JURISDICTION OVER THE PARTIES AND THE SUBJECT MATTER OF THEIR DISPUTE RELATING
TO THIS AGREEMENT AND THE AGREEMENTS INCORPORATED HEREIN BY REFERENCE. SHOULD ANY PART OF THE ARBITRATION AGREEMENT CONTAINED IN
THIS PARAGRAPH CONFLICT WITH ANY OTHER ARBITRATION AGREEMENT BETWEEN THE PARTIES, THE PARTIES AGREE THAT THIS ARBITRATION AGREEMENT
SHALL GOVERN.

 

16.          Authority.
The Company represents and warrants that the undersigned has the authority to act on behalf of the Company and to bind the Company
and all who may claim through it to the terms and conditions of this Agreement. Employee represents and warrants that Employee
has the capacity to act on Employee’s own behalf and on behalf of all who might claim through Employee to bind them to the
terms and conditions of this Agreement. Each Party warrants and represents that there are no liens or claims of lien or assignments
in law or equity or otherwise of or against any of the claims or causes of action released herein.

 

17.          Protected
Activity. Employee understands that nothing in this Agreement shall in any way limit or prohibit Employee from engaging for
a lawful purpose in any Protected Activity, provided, however, that Employee agrees not to seek or accept any monetary award from
such a proceeding (except with respect to proceedings before the Securities and Exchange Commission). For purposes of this Agreement,
“Protected Activity” shall mean filing a charge, complaint, or report with, or otherwise communicating with, cooperating
with or participating in any investigation or proceeding that may be conducted by, any federal, state or local government agency
or commission, including the Securities and Exchange Commission, the Equal Employment Opportunity Commission, the Occupational
Safety and Health Administration, and the National Labor Relations Board (“Government Agencies”). Employee understands
that in connection with such Protected Activity, Employee is permitted to disclose documents or other information as permitted
by law, and without giving notice to, or receiving authorization from, the Company. Notwithstanding the foregoing, Employee agrees
to take all reasonable precautions to prevent any unauthorized use or disclosure of any information that may constitute Company
confidential information under the Confidentiality Agreement to any parties other than the relevant Government Agencies. Employee
further understands that “Protected Activity” does not include the disclosure of any Company attorney-client privileged
communications, and that any such disclosure without the Company’s written consent shall constitute a material breach of
this Agreement. In addition, pursuant to the Defend Trade Secrets Act of 2016, Employee is notified that an individual 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 (directly or indirectly) or to an attorney solely
for the purpose of reporting or investigating a suspected violation of law, or (ii) is made in a complaint or other document filed
in a lawsuit or other proceeding, if (and only if) such filing is made under seal. In addition, an individual who files a lawsuit
for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the individual’s
attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade
secret under seal and does not disclose the trade secret, except pursuant to court order.

 

    	 	Page 5 of 7	 

     

    

 

 

18.          No
Representations. Employee represents that Employee has had an opportunity to consult with an attorney, and has carefully read
and understands the scope and effect of the provisions of this Agreement. Employee has not relied upon any representations or statements
made by the Company that are not specifically set forth in this Agreement.

 

19.          Severability.
In the event that any provision or any portion of any provision hereof or any surviving agreement made a part hereof becomes or
is declared by a court of competent jurisdiction or arbitrator to be illegal, unenforceable, or void, this Agreement shall continue
in full force and effect without said provision or portion of provision.

 

20.         Attorneys’
Fees. Except with regard to a legal action challenging or seeking a determination in good faith of the validity of the waiver
herein under the ADEA, in the event that either Party brings an action to enforce or effect its rights under this Agreement, the
prevailing Party shall be entitled to recover its costs and expenses, including the costs of mediation, arbitration, litigation,
court fees, and reasonable attorneys’ fees incurred in connection with such an action.

 

21.          Entire
Agreement. This Agreement represents the entire agreement and understanding between the Company and Employee concerning the
subject matter of this Agreement and Employee’s employment with and separation from the Company and the events leading thereto
and associated therewith, and supersedes and replaces any and all prior agreements and understandings concerning the subject matter
of this Agreement and Employee’s relationship with the Company, including the Employment Agreement, with the exception of
the dispute resolution and cooperation provisions in the Employment Agreement, the Confidentiality Agreement, and any agreements
between the Company and Employee relating to stock, stock options, or restricted stock units.

 

22.          No
Oral Modification. This Agreement may only be amended in a writing signed by Employee and the Company’s Chief Executive
Officer.

 

23.          Governing
Law. This Agreement shall be governed by the laws of the State of New Jersey, without regard for choice-of-law provisions.
Employee consents to personal and exclusive jurisdiction and venue in the State of New Jersey.

 

24.          Effective
Date. Employee understands that this Agreement shall be null and void if not executed by Employee, and returned to the Company,
within the forty-five (45) day period set forth above. Each Party has seven (7) days after that Party signs this Agreement to revoke
it. This Agreement will become effective on the eighth (8th) day after Employee signed this Agreement, so long as it has been signed
by the Parties and has not been revoked by either Party before that date (the “Effective Date”).

 

25.          Counterparts.
This Agreement may be executed in counterparts and each counterpart shall be deemed an original and all of which counterparts taken
together shall have the same force and effect as an original and shall constitute an effective, binding agreement on the part of
each of the undersigned. The counterparts of this Agreement may be executed and delivered by facsimile, photo, email PDF, Docusign/Echosign
or a similarly accredited secure signature service, or other electronic transmission or signature. This Agreement may be executed
in one or more counterparts, and counterparts may be exchanged by electronic transmission (including by email), each of which will
be deemed an original, but all of which together constitute one and the same instrument.

 

26.          Voluntary
Execution of Agreement. Employee understands and agrees that Employee executed this Agreement voluntarily, without any duress
or undue influence on the part or behalf of the Company or any third party, with the full intent of releasing all of Employee’s
claims against the Company and any of the other Releasees. Employee acknowledges that:

 

		(a)	Employee has read this Agreement;

 

		(b)	Employee has been represented in the preparation, negotiation, and execution of this Agreement
by legal counsel of Employee’s own choice or has elected not to retain legal counsel;

 

		(c)	Employee understands the terms and consequences of this Agreement and of the releases it contains;
and

 

		(d)	Employee is fully aware of the legal and binding effect
of this Agreement.

 

    	 	Page 6 of 7	 

     

    

 

IN WITNESS WHEREOF, the Parties have executed
this Agreement on the respective dates set forth below.

 

	 	STEphEN J. McAndrew, an individual
	 	 
	Dated:  November 18, 2018	/s/ Stephen J. McAndrew, Ph.D.
	 	Stephen J. McAndrew, Ph.D.
	 	 
	 	Oncobiologics, Inc.
	 	 
	Dated: November 9, 2018	By 	/s/ Lawrence A. Kenyon
	 	 	Lawrence A. Kenyon
	 	 	President, Chief Executive Officer & Chief Financial Officer

 

Exhibit A – Equity Interests

 

Exhibit B – ADEA Disclosure Schedule

 

    	 	Page 7 of 7	 

     

    

 

Exhibit A

 

Equity Awards Outstanding as of Separation
Date

 

	Type of Equity 

Award	 	Date of Issuance	 	 	Number of Shares 
 subject to Equity 
 Award Outstanding as 
 of Separation Date	 	 	Number of Shares
 Vested as of 
 Separation Date
 (inclusive of 
 accelerated vesting
 under Section 1(c) of 
 the Agreement)	 	 	Number of Shares
 Unvested as of 
 Separation Date	 
	Stock Option	 	 	6/15/2018	 	 	 	30,000	 	 	 	15,000	 	 	 	15,000	 
	Stock Option	 	 	10/22/2018	 	 	 	200,000	 	 	 	100,000	 	 	 	100,000	 

 

    	 	A-1 	 

     

    

 

Exhibit B

ADE Disclosure Schedule

 

    	 	B-1

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