Document:

Exhibit 10.3

 

Execution Version

 

SECOND AMENDMENT AND WAIVER TO 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

This SECOND AMENDMENT
AND WAIVER TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as of May 3, 2018, by
and among ACETO CORPORATION, a New York corporation (the “Borrower”), certain other Loan Parties party hereto
(the “Guarantors”), the Lenders party hereto (the “Consenting Lenders”), and WELLS FARGO
BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders party to the Credit Agreement (in such capacity, the “Administrative
Agent”).

 

Statement of Purpose

 

The Borrower, the Guarantors,
the lenders party thereto (the “Lenders”) and the Administrative Agent are parties to that certain Second Amended
and Restated Credit Agreement dated as of December 21, 2016 (as amended, restated, supplemented or otherwise modified from time
to time, the “Credit Agreement”), pursuant to which the Lenders have extended a term loan and a revolving credit
facility to the Borrower.

 

The Borrower has requested,
and subject to the terms and conditions set forth herein, the Administrative Agent and the Consenting Lenders have agreed, to certain
amendments and waivers to the Credit Agreement as specifically set forth herein.

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as
follows:

 

1.       Capitalized
Terms. All capitalized undefined terms used in this Amendment (including, without limitation, in the introductory paragraph
and the Statement of Purpose hereto) shall have the meanings assigned thereto in the Credit Agreement (as amended by this Amendment).

 

2.       Waiver.
Pursuant to Section 9.02(b) of the Credit Agreement and on the effectiveness of this Amendment, each Consenting Lender hereby
waives any Default or Event of Default arising under Article VII(b) of the Credit Agreement as a result of the non-compliance
by the Borrower with Sections 6.12(a) and 6.12(c) of the Credit Agreement, in each case, solely for the fiscal quarter
ended March 31, 2018.

 

3.       Amendments
to Credit Agreement. Subject to and in accordance with the terms and conditions set forth herein, the parties hereto agree
that the Credit Agreement is amended as follows:

 

(a)       Section
1.01 of the Credit Agreement is hereby amended by adding the following new definitions of in the appropriate alphabetical order:

 

““Benefit
Plan” means any of (a) an “employee benefit plan” (as defined in ERISA) that is subject to Title I of ERISA,
(b) a “plan” as defined in Section 4975 of the Code or (c) any Person whose assets include (for purposes of ERISA Section
3(42) or otherwise for purposes of Title I of ERISA or Section 4975 of the Code) the assets of any such “employee benefit
plan” or “plan”.”;

 

““Limitation
Period” means the period commencing on the Second Amendment Effective Date and ending on the date the Borrower demonstrates
compliance with each financial covenant set forth in Section 6.12 for the fiscal quarter ending June 30, 2018; provided
that if the Borrower is not in compliance with any of the financial covenants set forth in Section 6.12 for the fiscal quarter
ending June 30, 2018, then the Limitation Period shall continue indefinitely.”;

 

     

     

    

 

““PTE”
means a prohibited transaction class exemption issued by the U.S. Department of Labor, as any such exemption may be amended from
time to time.”; and

 

““Second
Amendment Effective Date” means May 3, 2018.”.

 

(b)       The
definition of “Applicable Rate” set forth in Section 1.01 of the Credit Agreement is hereby amended by
adding the following sentence at the end of such definition: “Notwithstanding anything contained herein to the contrary,
Category 5 shall be deemed to be applicable at all times during the Limitation Period.”.

 

(c)       The
definition of “Permitted Acquisition” set forth in Section 1.01 of the Credit Agreement is hereby amended
by deleting the reference to “$15,000,000” in the first sentence thereof and replacing it with “(x) $1,000,000
at any time prior to the termination of the Limitation Period and (y) $15,000,000 at any time after the termination of the Limitation
Period”.

 

(d)       Clause
(a) of the definition of “Prepayment Event” set forth in Section 1.01 of the Credit Agreement is hereby
amended by deleting clause (ii) thereof in its entirety and replacing it with “(ii) dispositions described in (and permitted
by) Section 6.04(e) in an amount not to exceed (x) $1,000,000 during any fiscal year of the Borrower at any time prior to
the termination of the Limitation Period and (y) $5,000,000 during any fiscal year of the Borrower at any time after the termination
of the Limitation Period”.

 

(e)       The
definition of “Revolving Commitment” set forth in Section 1.01 of the Credit Agreement is hereby amended
by deleting the last sentence thereof and replacing it with the following: “The aggregate amount of the Lenders’ Revolving
Commitments as of the Second Amendment Effective Date is $100,000,000”.

 

(f)       Section
2.11(c) of the Credit Agreement is hereby amended by deleting the proviso contained therein and replacing it with the following:

 

“provided
that, in the case of any event that qualifies as a “Prepayment Event” pursuant to clause (a) or (b) of the definition
of the term “Prepayment Event” and other than during the Limitation Period, if the Borrower shall deliver to the Administrative
Agent a certificate of a Financial Officer to the effect that the Loan Parties intend to apply the Net Proceeds from such event
(or a portion thereof specified in such certificate), within 360 days after receipt of such Net Proceeds, to acquire (or replace
or rebuild) real property, equipment or other assets (excluding inventory) to be used in the business of the Loan Parties, and
certifying that no Event of Default has occurred and is continuing, then no prepayment shall be required pursuant to this paragraph
in respect of the Net Proceeds specified in such certificate, provided that to the extent of any such Net Proceeds that have not
been so applied by the end of such 360 day period (or committed to be applied by the end of such 360 day period and applied within
90 days after the end of such 360 day period), a prepayment shall be required at such time in an amount equal to such Net Proceeds
that have not been so applied”

 

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(g)       Section
3.08 of the Credit Agreement is hereby amended by adding the following sentence at the end of such Section: “The Borrower
is not nor will be using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42)
of ERISA) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Commitments.”.

 

(h)       Section
4.02 of the Credit Agreement is hereby amended by adding the following new clause (d) thereto:

 

“(d)For
any Borrowing (including the incurrence of any Incremental Facilities under Section 2.23) or the issuance, amendment, renewal
or extension of any Letter of Credit requested during the Limitation Period, the Borrower shall have received the prior written
consent of the Required Lenders.”.

 

(i)       Sections
5.09(b)(ii), 6.02(g), 6.02(h), 6.02(q), 6.02(u) and 6.14(b) of the Credit Agreement are
hereby amended by adding the following language at the beginning of each such Section: “at any time after the termination
of the Limitation Period,”.

 

(j)       Section
6.02(i) of the Credit Agreement is hereby amended by deleting the reference therein to “$5,000,000” and replacing
it with “(x) $1,000,000 at any time prior to the termination of the Limitation Period and (y) $5,000,000 at any time after
the termination of the Limitation Period”.

 

(k)       The
first sentence of Section 6.06 of the Credit Agreement is hereby amended by deleting the reference therein to “$15,000,000
in a single transaction or series of related transactions (other than purchases of inventory in the ordinary course of business)”
and replacing it with “(x) $1,000,000 at any time prior to the termination of the Limitation Period and (y) $15,000,000 at
any time after the termination of the Limitation Period, in each case in a single transaction or series of related transactions
(other than purchases of assets in the ordinary course of business)”.

 

(l)       Section
6.06(i) of the Credit Agreement is hereby amended by deleting the reference therein to “$10,000,000” and replacing
it with “(x) $1,000,000 at any time prior to the termination of the Limitation Period and (y) $10,000,000 at any time after
the termination of the Limitation Period”.

 

(m)       Section
6.06(k) of the Credit Agreement is hereby amended by deleting the reference therein to “$5,000,000 at any time outstanding”
and replacing it with “(x) $1,000,000 at any time outstanding prior to the termination of the Limitation Period and (y) $5,000,000
at any time outstanding after the termination of the Limitation Period”.

 

(n)       Section
6.14(a) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

“(a)(i)
at any time prior to the termination of the Limitation Period, if no Default or Event of Default has occurred and is continuing
or would arise after giving effect (including giving effect on a pro forma basis) thereto, the Borrower may, solely for the fiscal
quarter ending on or about June 30, 2018, make dividends and distributions to its shareholders which have been approved by the
Board of Directors of the Borrower, consistent with past practices of the Borrower prior to the Effective Date, of up to $0.01
per share (but not to exceed $325,000 in the aggregate) and (ii) at any time after the termination of the Limitation Period, if
(A) no Default or Event of Default has occurred and is continuing or would arise after giving effect (including giving effect on
a pro forma basis) thereto, and (B) at the time of and immediately after giving effect (including giving effect on a pro forma
basis) thereto the Borrower is in compliance with the financial covenants set forth in Section 6.12(a), (b) and (c),
the Borrower may make quarterly dividends and distributions to its shareholders which have been approved by the Board of Directors
of the Borrower, consistent with past practices of the Borrower prior to the Effective Date;”

 

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(o)       Article
IX of the Credit Agreement is hereby amended by adding a new Section 9.21 to such article as follows:

 

“SECTION 9.21Certain
ERISA Matters.

 

(a)       Each
Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants, from the date
such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of, the Administrative
Agent, the Arranger and their respective Affiliates, and not, for the avoidance of doubt, to or for the benefit of the Borrower
or any other Credit Party, that at least one of the following is and will be true:

 

(i)       such
Lender is not using “plan assets” (within the meaning of 29 CFR § 2510.3-101, as modified by Section 3(42) of
ERISA) of one or more Benefit Plans in connection with the Loans, the Letters of Credit or the Revolving Credit Commitments;

 

(ii)       the
transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions determined by
independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance company
general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts),
PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption
for certain transactions determined by in-house asset managers), is applicable with respect to such Lender’s entrance into,
participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Credit Commitments and this
Agreement;

 

(iii)       (A)
such Lender is an investment fund managed by a “Qualified Professional Asset Manager” (within the meaning of Part VI
of PTE 84-14), (B) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to enter into,
participate in, administer and perform the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement, (C)
the entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Credit
Commitments and this Agreement satisfies the requirements of sub-sections (b) through (g) of Part I of PTE 84-14 and (D) to the
best knowledge of such Lender, the requirements of subsection (a) of Part I of PTE 84-14 are satisfied with respect to such Lender’s
entrance into, participation in, administration of and performance of the Loans, the Letters of Credit, the Revolving Credit Commitments
and this Agreement; or

 

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(iv)       such
other representation, warranty and covenant as may be agreed in writing between the Administrative Agent, in its sole discretion,
and such Lender.

 

(b)       In
addition, unless sub-clause (i) in the immediately preceding clause (a) is true with respect to a Lender or such
Lender has not provided another representation, warranty and covenant as provided in sub-clause (iv) in the immediately
preceding clause (a), such Lender further (x) represents and warrants, as of the date such Person became a Lender party
hereto, to, and (y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender
party hereto, for the benefit of, the Administrative Agent, the Arranger and their respective Affiliates, and not, for the avoidance
of doubt, to or for the benefit of the Borrower or any other Credit Party, that:

 

(i)       none
of the Administrative Agent, the Arranger or any of their respective Affiliates is a fiduciary with respect to the assets of such
Lender (including in connection with the reservation or exercise of any rights by the Administrative Agent under this Agreement,
any Loan Document or any documents related to hereto or thereto);

 

(ii)       the
Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement is independent (within
the meaning of 29 CFR § 2510.3-21) and is a bank, an insurance carrier, an investment adviser, a broker-dealer or other person
that holds, or has under management or control, total assets of at least $50 million, in each case as described in 29 CFR §
2510.3-21(c)(1)(i)(A)-(E);

 

(iii)       the
Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement is capable of evaluating
investment risks independently, both in general and with regard to particular transactions and investment strategies (including
in respect of the Secured Obligations);

 

(iv)       the
Person making the investment decision on behalf of such Lender with respect to the entrance into, participation in, administration
of and performance of the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement is a fiduciary under
ERISA or the Code, or both, with respect to the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement
and is responsible for exercising independent judgment in evaluating the transactions hereunder; and

 

(v)       no
fee or other compensation is being paid directly to the Administrative Agent, the Arranger or their respective Affiliates for investment
advice (as opposed to other services) in connection with the Loans, the Letters of Credit, the Revolving Credit Commitments or
this Agreement.

 

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(c)       The
Administrative Agent and the Arranger hereby inform the Lenders that each such Person is not undertaking to provide impartial investment
advice, or to give advice in a fiduciary capacity, in connection with the transactions contemplated hereby, and that such Person
has a financial interest in the transactions contemplated hereby in that such Person or an Affiliate thereof (i) may receive interest
or other payments with respect to the Loans, the Letters of Credit, the Revolving Credit Commitments and this Agreement, (ii) may
recognize a gain if it extended the Loans, the Letters of Credit or the Revolving Credit Commitments for an amount less than the
amount being paid for an interest in the Loans, the Letters of Credit or the Revolving Credit Commitments by such Lender or (iii)
may receive fees or other payments in connection with the transactions contemplated hereby, the Loan Documents or otherwise, including
structuring fees, commitment fees, arrangement fees, facility fees, upfront fees, underwriting fees, ticking fees, agency fees,
administrative agent or collateral agent fees, utilization fees, minimum usage fees, letter of credit fees, fronting fees, deal-away
or alternate transaction fees, amendment fees, processing fees, term out premiums, banker’s acceptance fees, breakage or
other early termination fees or fees similar to the foregoing.”

 

(p)       Schedule
2.01 to the Credit Agreement is hereby amended and restated in the form of Schedule 2.01 hereto.

 

4.       Reduction
in Revolving Commitments. Effective on the effectiveness of this Amendment, the aggregate amount of the Lenders’ Revolving
Commitments is hereby permanently reduced to $100,000,000, such reduction to be applied ratably among the Lenders in accordance
with their respective Revolving Commitments immediately prior to such reduction. As of the effective date of this Amendment, the
Revolving Commitment of each Lender is set forth on Schedule 2.01 hereto.

 

5.       Covenants.
During the Limitation Period, each Loan Party covenants and agrees, jointly and severally with all of the other Loan Parties, with
the Lenders that:

 

(a)       Projections.
The Borrower shall furnish to the Administrative Agent for distribution to each Lender, as soon as available, but in any event
not later than (i) June 20, 2018 (or such later date as may be agreed to by the Administrative Agent in its sole discretion), financial
statement projections (in form and substance reasonably satisfactory to the Administrative Agent) through and including the Borrower’s
fiscal year ending on or about June 30, 2019, together with such information as the Administrative Agent and the Required Lenders
shall reasonably request (including, without limitation, a detailed description of the assumptions used in preparing such projections)
and (ii) July 20, 2018 (or such later date as may be agreed to by the Administrative Agent in its sole discretion), financial statement
projections (in form and substance reasonably satisfactory to the Administrative Agent) through and including the Borrower’s
fiscal year ending on or about June 30, 2021, together with such information as the Administrative Agent and the Required Lenders
shall reasonably request (including, without limitation, a detailed description of the assumptions used in preparing such projections).

 

(b)       Control
Agreements. The Borrower and the other Loan Parties shall, as soon as practicable, and in any event within forty-five (45)
days after the date of this Amendment (or such later date as may be agreed to by the Administrative Agent in its sole discretion),
comply with the requirements of Sections 3.04(b) and (c) of the Security Agreement with respect to all applicable
deposit accounts and securities accounts described therein.

 

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(c)       Monthly
Financial Statements. The Borrower shall furnish to the Administrative Agent for distribution to each Lender, as soon as available,
but in any event not later than thirty (30) days after the end of each fiscal month of the Borrower, the monthly unaudited “flash”
results of operations distributed to the Borrower’s senior management.

 

(d)       Cash
Flow Reports. The Borrower shall provide the following cash flow reports, in each case in form and substance reasonably satisfactory
to the Administrative Agent: (a) on or prior to the first Wednesday after the date that is thirty (30) days after the date of this
Amendment (or such later date as may be agreed to by the Administrative Agent in its sole discretion), the Borrower shall prepare
and deliver to the Administrative Agent for distribution to each Lender a rolling cash flow forecast for the 13-week period commencing
as of such date (the “Initial Cash Flow Forecast”) and (b) thereafter, on each 4th subsequent Wednesday,
an updated Cash Flow Forecast for the succeeding 13 weeks (the “Updated Cash Flow Forecast” and, together with
the Initial Cash Flow Forecast, the “Cash Flow Forecasts”) each along with a certificate of the chief financial
officer of the Borrower to the effect that such Cash Flow Forecast reflects the Borrower’s good faith projection of all weekly
cash receipts and disbursements and ending balance of available cash (as of the last Business Day of each week). Additionally,
on each Thursday, the Borrower shall provide a report for the week ending the previous Friday, in form and substance reasonably
satisfactory to the Administrative Agent, specifying (A) the cash on hand in deposit accounts at the beginning of such week, (B)
cash receipts received during such week, (C) cash disbursed during such week in payment of expenses, (D) the cash on hand in deposit
accounts at the end of such week and (E) a comparison of such amounts to the comparable amounts in the Cash Flow Forecast for such
week and in the aggregate for the applicable Cash Flow Forecast period.

 

The failure by the
Borrower to comply with any of the requirements set forth in this Section 5 shall constitute an Event of Default under Article
VII of the Credit Agreement if such non-compliance with this Section 5 shall continue unremedied for a period of one
(1) Business Day after delivery by the Administrative Agent to the Borrower of notice of such non-compliance.

 

6.       Advisors
and Other Professionals. By their execution hereof, the Borrower and each Guarantor hereby expressly (a) consents to the Administrative
Agent’s hiring of any advisors and other professionals in connection with this Amendment and/or the Loan Documents and (b)
agrees that the fees and out-of-pocket expenses of any such advisors and other professionals hired by the Administrative Agent
shall be subject to Section 9.03 of the Credit Agreement.

 

7.       Conditions
to Effectiveness. The effectiveness of this Amendment shall be subject to the satisfaction of each of the following conditions
precedent:

 

(a)       the
Administrative Agent’s receipt of this Amendment duly executed by each Loan Party, the Administrative Agent and the Consenting
Lenders constituting Required Lenders;

 

(b)       no
Default or Event of Default shall have occurred and be continuing immediately prior to or after giving effect to this Amendment
other than as expressly waived hereunder;

 

(c)       the
Borrower shall have paid to the Administrative Agent, for the account of each Consenting Lender that provides its executed signature
page to this Amendment to the Administrative Agent or its counsel on or prior to 5:00 p.m. Eastern time on May 2, 2018, a consent
fee in an aggregate amount equal to 0.05% multiplied by the sum of (i) the Revolving Commitments (determined as of the date
hereof, after giving effect to this Amendment) of each such Consenting Lender plus (ii) the aggregate outstanding principal
amount of the Term Loans (determined as of the date hereof immediately prior to the effectiveness of this Amendment) owed to each
such Consenting Lender; and

 

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(d)       the
Borrower shall have paid all expenses in connection with this Amendment, including without limitation, all reasonable fees, charges
and disbursements of counsel to the Administrative Agent (directly to such counsel if requested by the Administrative Agent).

 

For purposes of determining
compliance with the conditions specified in this Section 7, each Consenting Lender shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved
by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Consenting Lender
prior to the effectiveness of this Amendment specifying its objection thereto.

 

8.       Further
Assurances. Each Loan Party agrees to, to the extent required by the Loan Documents, make, execute and deliver all such additional
and further acts, things, deeds, instruments and documents as the Administrative Agent may reasonably require for the purposes
of implementing or effectuating the provisions of this Amendment and the other Loan Documents.

 

9.       Limited
Effect. Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall remain unmodified and
in full force and effect. This Amendment shall not be deemed (a) to be a waiver of, or consent to, or a modification or amendment
of, any other term or condition of the Credit Agreement or any other Loan Document other than as expressly set forth herein, (b)
to prejudice any right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or
in connection with the Credit Agreement or the other Loan Documents or any of the instruments or agreements referred to therein,
as the same may be amended, restated, supplemented or modified from time to time, or (c) to be a commitment or any other undertaking
or expression of any willingness to engage in any further discussion with the Borrower, any of its Subsidiaries or any other Person
with respect to any other waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or
any rights or remedies arising in favor of the Lenders or the Administrative Agent, or any of them, under or with respect to any
such documents. References in the Credit Agreement to “this Agreement” (and indirect references such as “hereunder”,
“hereby”, “herein”, “hereof” or other words of like import) and in any Loan Document to the
“Credit Agreement” shall be deemed to be references to the Credit Agreement as modified hereby.

 

10.       Representations
and Warranties. The Borrower and each Guarantor represents and warrants that (a) it has the corporate or other equivalent power
and authority to make, deliver and perform this Amendment, (b) it has taken all necessary corporate or other equivalent action
to authorize the execution, delivery and performance of this Amendment, (c) this Amendment has been duly executed and delivered
on behalf of such Person, (d) this Amendment constitutes a legal, valid and binding obligation of such Person, enforceable against
it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law), (e) each of the representations and warranties made by such Loan Party
in or pursuant to the Loan Documents is true and correct in all material respects (except to the extent that such representation
and warranty is subject to a materiality or Material Adverse Effect qualifier, in which case it shall be true and correct in all
respects), in each case on and as of the date hereof as if made on and as of the date hereof, except to the extent that such representations
and warranties relate to an earlier date, in which case such representations and warranties are true and correct in all material
respects as of such earlier date, and (f) no Default or Event of Default has occurred and is continuing as of the date hereof or
would result after giving effect to this Amendment and the transactions contemplated hereby.

 

11.       Acknowledgement
and Reaffirmation. By their execution hereof, the Borrower and each Guarantor hereby expressly (a) consents to this Amendment,
(b) acknowledges that the covenants, representations, warranties and other obligations set forth in the Credit Agreement and the
other Loan Documents to which the Borrower or such Guarantor is a party remain in full force and effect (it being understood and
agreed that to the extent any such covenants, representations, warranties or other obligations are expressly modified herein, such
covenants, representations, warranties or obligations shall continue in full force and effect as expressly modified herein) and
(c) ratifies and reaffirms any guarantee and grant of security interests and Liens on any of their respective Collateral pursuant
to any Loan Document as security for or otherwise guaranteeing the Obligations under or with respect to the Loan Documents and
confirm and agree that such security interests and Liens are in all respects continuing and in full force and effect and shall
continue to secure all of the Obligations under the Loan Documents (after giving effect to this Amendment).

 

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12.       Costs
and Expenses. The Borrower agrees to pay all reasonable out-of-pocket costs and expenses of the Administrative Agent in connection
with the preparation, execution, delivery and administration of this Amendment and the other instruments and documents to be delivered
hereunder, including, without limitation, the reasonable fees and out-of-pocket expenses of counsel for the Administrative Agent.

 

13.       Execution
in Counterparts. This Amendment may be executed by one or more of the parties hereto in any number of separate counterparts
and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed
signature page of this Amendment by facsimile, telecopy, pdf or other electronic transmission shall be effective as delivery of
a manually executed counterpart hereof.

 

14.       Governing
Law. This Amendment and the rights and obligations of the parties under this Amendment
shall be governed by, and construed in accordance with, the law of the state of New York, without reference to the conflicts or
choice of law principles thereof.

 

15.       Entire
Agreement. This Amendment is the entire agreement, and supersedes any prior agreements and contemporaneous oral agreements,
of the parties concerning its subject matter. This Amendment is a Loan Document and is subject to the terms and conditions of the
Credit Agreement.

 

16.       Successors
and Assigns. This Amendment shall be binding on and inure to the benefit of the parties and their heirs, beneficiaries, successors
and permitted assigns.

 

17.       Release. 
The Borrower, on behalf of itself and its Subsidiaries, successors, assigns and other legal representatives, hereby releases, waives,
and forever relinquishes all claims, demands, obligations, liabilities and causes of action of whatever kind or nature (collectively,
the “Claims”), whether known or unknown, which any of them have, may have, or might assert at the time of the
execution of this Amendment or in the future against the Administrative Agent, the Lenders and/or their respective present and
former parents, affiliates, participants, officers, directors, employees, agents, attorneys, accountants, consultants, successors
and assigns (each a “Releasee”), directly or indirectly, which occurred, existed, were taken, permitted or begun
from the beginning of time through the date hereof, arising out of, based upon, or in any manner connected with (a) the Loan Documents
and/or the administration thereof or the Obligations created thereby, (b) any discussions, commitments, negotiations, conversations
or communications with respect to the refinancing, restructuring or collection of any of the Obligations, or (c) any matter related
to the foregoing; provided that (i) the foregoing shall not release Claims arising following the date hereof, and (ii) such release
shall not be available to any Releasee to the extent that such Claims are determined by a court of competent jurisdiction by final
and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Releasee.

 

[Remainder of page intentionally left blank;
signature pages follow]

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Amendment to be executed under seal by their duly authorized officers, all as of the day and
year first written above.

 

	 	LOAN PARTIES:
	 	 	 
	 	ACETO CORPORATION, as Borrower
	 	 	 
	 	 	 
	 	By: 	/s/ Rebecca A. Roof
	 	Name:	Rebecca A. Roof
	 	Title:	Chief Financial Officer
	 	 	 
	 	 	 
	 	ACETO AGRICULTURAL CHEMICALS CORPORATION, as Guarantor
	 	 	 
	 	 	 
	 	By: 	/s/ Rebecca A. Roof
	 	Name:	Rebecca A. Roof
	 	Title:	Chief Financial Officer
	 	 	 
	 	 	 
	 	PACK PHARMACEUTICALS, LLC, as Guarantor
	 	 	 
	 	 	 
	 	By: 	/s/ Rebecca A. Roof
	 	Name:	Rebecca A. Roof
	 	Title:	Chief Financial Officer
	 	 	 
	 	 	 
	 	RISING PHARMACEUTICALS, INC., as Guarantor
	 	 	 
	 	 	 
	 	By: 	/s/ Rebecca A. Roof
	 	Name:	Rebecca A. Roof
	 	Title:	Chief Financial Officer
	 	 	 
	 	RISING HEALTH, LLC, as Guarantor
	 	 	 
	 	 	 
	 	By: 	/s/ Rebecca A. Roof
	 	Name:	Rebecca A. Roof
	 	Title:	Chief Financial Officer

 

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	Administrative
    Agent and Lenders:
	 	 	 
	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, individually as a Lender, and as Administrative Agent, Swingline Lender and an Issuing Bank
	 	 	 
	 	 	 
	 	By: 	/s/ Teddy Koch
	 	Name:	Teddy Koch
	 	Title:	Director

 

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	JPMORGAN CHASE BANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Nicholas J. Watts
	 	Name:	Nicholas J. Watts
	 	Title:	Authorized Officer

  

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	CITIBANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Stuart N. Berman
	 	Name:	Stuart N. Berman
	 	Title:	Authorized Signatory

 

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	TD BANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Robert Ehrlich
	 	Name:	Robert Ehrlich
	 	Title:	Vice President

  

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	CITIZENS BANK, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Prasanna Manyem
	 	Name:	Prasanna Manyem
	 	Title:	Vice President

  

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	SANTANDER BANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Kristen Burke
	 	Name:	Kristen Burke
	 	Title:	Senior Vice President

 

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	BANK LEUMI USA, as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Michael J. Smilovitch
	 	Name:	Michael J. Smilovitch
	 	Title:	
        Vice President

        Bank Leumi USA

	 	 	 
	 	By: 	/s/ Douglas J. Meyer
	 	Name:	Douglas J. Meyer
	 	Title:	
        Senior Vice President

        Bank Leumi USA

 

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	BMO HARRIS BANK, N.A., as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Eric Oppenheimer
	 	Name:	Eric Oppenheimer
	 	Title:	Managing Director

  

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	BANKUNITED, N.A., as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Christine Gerula
	 	Name:	Christine Gerula
	 	Title:	SVP

  

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	HSBC BANK USA, NATIONAL ASSOCIATION,
	 	as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ William Conlan
	 	Name:	William Conlan
	 	Title:	Senior
    Vice President

 

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature Page

     

    

 

	 	PEOPLE’S UNITED BANK, NATIONAL ASSOCIATION, as a Lender
	 	 	 
	 	 	 
	 	By: 	/s/ Steven Levi
	 	Name:	Steven Levi
	 	Title:	Senior Vice President

  

    
Aceto Corporation
Second Amendment and Waiver to Second Amended and Restated Credit Agreement
Signature PageExhibit

***Text Omitted and Filed Separately
with Securities and Exchange Commission
Confidential Treatment Requested
Under 17 C.F.R. Sections 200.80(b)(4) and 240.24b-2 of the 
Securities Exchange Act of 1934, as amended.

FIFTH AMENDMENT TO THE LICENSE AGREEMENT EFFECTIVE MAY 13, 2002
BETWEEN
CHIMERIX, INC.
AND
THE REGENTS OF THE UNIVERSITY OF CALIFORNIA
FOR
CASE NOS. [...***...], [...***...] AND [...***...]

This fifth amendment to the agreement (“Fifth Amendment”) is made by and between Chimerix, Inc., a Delaware corporation having an address at 2505 Meridian Parkway, Suite 340, Durham, NC 27713 (“Chimerix”), and The Regents of the University of California, a California corporation having its statewide administrative offices at 1111 Franklin Street, Oakland, CA 94607-5200 (“University”) as represented by its San Diego campus having an address at University of California San Diego, Technology Transfer Office, Mail Code 0910, 9500 Gilman Drive, La Jolla, CA 92093-0910 (“UCSD”). 
Capitalized terms used but not otherwise defined herein shall have the meaning given them in the license agreement between Chimerix and University effective May 13, 2002, having UC Control No. [...***...] (“Original Agreement”), as amended by the previously executed first amendment effective September 11, 2002, having UC Control No. [...***...] (the “First Amendment”), and second amendment effective December 17, 2010, having UC Control No. [...***...] (the “Second Amendment”), and third amendment effective September 14, 2011, having UC Control No. [...***...] (the “Third Amendment”), and fourth amendment effective July 19, 2012 having UC Control No. [...***...] (the “Fourth Amendment”), and any other revisions regarding the Patent Rights previously made. The Original Agreement, together with, and as amended by, those revisions, the First Amendment the Second Amendment, the Third Amendment and the Fourth Amendment are collectively referred to herein as the “Agreement”. 
This Fifth Amendment is effective on the date of last signature (“Fifth Amendment Effective Date”). 
WHEREAS, pursuant to the Fourth Amendment, the parties extended the deadline for achievement of the due diligence milestone set forth in Paragraph 3.3(a)(6) of the Original Agreement for four years, and Chimerix has now requested that such deadline be extended by an additional two (2) years; 
WHEREAS, as a result of the extension of such deadline under the Fourth Amendment and the additional extension of such deadline requested by Chimerix, the expected royalty period for Licensed Products would be reduced by six (6) years; and 
WHEREAS, for the mutual benefit of the University and Chimerix, the parties desire to amend the Agreement to: (a) extend the Term (and thereby the period during which Chimerix is obligated to make royalty payments) for an additional five years; (b) provide for a [...***...] reduction in Chimerix’s royalty obligations under Paragraph 3.1(c) of the Agreement during the last five (5) years of the Term; and (c) extend the deadline for achievement of the due diligence milestone set forth in Paragraph 3.3(a)(6) of the Agreement by an additional two (2) years.
Now, Therefore, Chimerix and University agree to amend the Agreement as set forth in this Fifth Amendment.
ARTICLE 1.  DEFINITIONS
Paragraph 1.5 is amended and restated to read in its entirety as follows:
“Term” means the period of time beginning on the Effective Date and ending on the later of (i) the expiration date of the longest-lived Patent Rights; or (ii) the twenty-sixth (26th) anniversary of the Effective Date.
ARTICLE 3.  CONSIDERATIONS
Paragraph 3.1(c)(iv) is added to read in its entirety as follows:
Effective as of May 13, 2023, and thereafter for the remainder of the Term: (A) the Royalty Rate shall be reduced by [...***...] (i.e., from [...***...] to [...***...]); (B) such reduced rate shall be subject to any applicable adjustments pursuant to Paragraph 3.1(c)(i) and Paragraph 3.1(c)(ii); and (C) Paragraph 3.1(c)(iii) shall terminate and be of no further force or effect; provided, however, that under no circumstances shall the royalty due to UNIVERSITY on or after May 13, 2023, be less than [...***...] of the amount due without the deductions allowable under Paragraph 3.1(c)(i) and Paragraph 3.1(c)(ii) – i.e., the royalties due to UNIVERSITY shall never be less than [...***...] on Net Sales of Licensed Products by LICENSEE or its Affiliates.
Paragraph 3.3(a)(6) is amended and restated to read in its entirety as follows:
on or before the date ending eighteen (18) years after the Effective Date file with US FDA an NDA or PLA (or its equivalent in a foreign country) for first Licensed Product; and
ADDITIONAL CONSIDERATION TO UNIVERSITY
A one-time amendment fee of [...***...] ([...***...]) payable within thirty (30) days of the Fifth Amendment Effective Date.
Except as specifically amended by this Fifth Amendment, the Agreement shall remain in full force and effect in accordance with its terms.  The parties agree that this Fifth Amendment may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

IN WITNESS WHEREOF, Chimerix and University have executed this Fifth Amendment by their respective duly authorized representatives.

CHIMERIX, INC.                THE REGENTS OF THE 
UNIVERSITY OF CALIFORNIA

By: /s/ Timothy W. Trost                    By: /s/ Donna Shaw         
(Signature)                            (Signature)

Name: Timothy W. Trost                        Donna Shaw, Ph.D., CLP

		
	Title: SVP & CFO
	                                            Associate Director, 

Office of Innovation and Commercialization                                                        
Date: 4/24/18                    Date: April 24, 2018            

***Confidential Treatment Requested
1

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