Document:

Blueprint

 

Exhibit 10.3

 

SECOND AMENDMENT TO LEASE AGREEMENT

 

THIS
SECOND AMENDMENT TO LEASE AGREEMENT (“Second
Amendment”) is made and entered into as of this 4th day of April, 2019
by and between BETA INVESTORS
GROUP, L.L.C., an Illinois limited liability company
(“Landlord”), as successor in interest to 373
Inverness, LLC, an Arizona limited liability company (“373
Inverness”) and AYTU
BIOSCIENCE, INC, a Delaware corporation
(“Tenant”).

 

RECITALS

 

WHEREAS, 373
Inverness, LLC, an Arizona limited liability company, and Tenant
entered into that certain Office Lease on August 15, 2015,
(“Lease”) for the premises located at 373 Inverness
Parkway, Suite 206, Englewood, Colorado 80112, consisting of 6,579
rentable square feet (the “Premises”), and

 

WHEREAS, the
parties desire to extend the Term of the Lease for the Premises and
otherwise amend the Lease, all on the following terms and
conditions.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
foregoing and for other good and valuable consideration, the
receipt and adequacy of which are acknowledged, Landlord and Tenant
agree as follows:

 

1.

Recitals. The recitals set
forth above are incorporated herein by reference.

 

2.

Lease Term. The Lease Term for
the Premises is hereby extended for a period of thirty-six (36)
months commencing on October 1, 2020 and expiring on September 30,
2023 (the “Second Extended Term”).

 

3.

Base Rent. The Base Rent for
the Second Extended Term shall be as follows:

 

	
Period

	
 
Base
Rent

PSF

 

	
 
Base
Rent

Per
Month

 

	
 
Base
Rent

Per
Annum

 

	
10/1/20-09/30/21

	
 $17.50 

	
 $9,594.38 

	
 $115,132.50 

	
10/1/21-09/30/22

	
 $18.00 

	
 $9,868.50 

	
 $118,422.00 

	
10/1/22-09/30/23

	
 $18.50 

	
 $10,142.63 

	
 $121,711.50 

 

4.
Right of First Refusal
(“RFR”). Before entering into a new lease on all
or any portion of the Building, and (1) as long as Tenant is not
then in default under the Lease, and (2) the existing tenant in
such available space elects not to renew its lease, Landlord will
notify Tenant of the fair market base rent, rental increases and
other applicable business terms (“Rental Terms”) upon
which it would be willing to lease such available space to Tenant.
Notwithstanding the sentence above, with respect to suite 110,
Landlord has a prior obligation to offer the RFR to the tenant in
suite 100. If the tenant in suite 100 declines to exercise its RFR
then Tenant would have the right to exercise its RFR on Suite
110.

 

 

1

 

  

If
within 5 business days after receipt of Landlord’s notice,
Tenant agrees in writing to lease “Additional Space” at
the Rental Terms, Landlord and Tenant will have a period of 30 days
to negotiate a lease for Additional Space after Landlord’s
receipt of Tenant’s notice of intent to lease on all the same
terms of this Lease, except for the Rental Terms and tenant
improvements, and other matters dependent upon the size of the
Premises, such as Tenant’s Proportionate Share. If Tenant
does not deliver its notice of intent to lease Additional Space
offered in Landlord’s notice within such 5 business day
period, or if Landlord and Tenant do not enter into a fully
executed lease for Additional Space within such 30 day period, then
this RFR will lapse and be of no further force and effect and
Landlord will have the right to lease Additional Space to a third
party on terms in Landlord’s sole discretion whether or not
such terms and conditions are more or less favorable than those
offered to Tenant. This RFR is personal to Tenant and is not
assignable.

 

5.
Brokers. Landlord
and Tenant represent to each other that they have not dealt with
any brokers in connection with this Second Amendment. Each party
agrees to indemnify the other against any liability arising from a
breach of the representations contained in this
paragraph.

 

6.
Miscellaneous.

 

A. This
Second Amendment sets forth the entire agreement between the
parties with respect to the matters set forth herein. There have
been no additional oral or written representations or
agreements.

 

B.
Except as herein modified or amended, the provisions, conditions
and terms of the Lease shall remain unchanged and in full force and
effect.

 

C. In
the case of any inconsistency between the provisions of the Lease
and this Second Amendment, the provisions of this Second Amendment
shall govern and control.

 

D. The
capitalized terms used in the Second Amendment shall have the same
definitions as set forth in the Lease to the extent that such
capitalized terms are defined therein and not redefined in this
Second Amendment.

 

E. The
foregoing Second Amendment may be executed in counterparts, each of
which when taken together, shall constitute on and the same
document.

 

F. The
parties executing this Second Amendment hereby represent and
warrant that they have the authority to execute and bind the entity
for which they are executing this Second Amendment in all
respects.

 

 

2

 

   

IN
WITNESS WHEREOF, Landlord and Tenant have executed this Second
Amendment as of the date first written above.

 

LANDLORD:

 

BETA INVESTORS GROUP L.L.C.,
an Illinois limited liability
company

 

By:
Beta Mgr. Inc., an Illinois corporation Its: Manager

 

By:____________________________________

Name:
Lisa K. Miner

Title:
Executive Vice President

 

Date:
__________________________________

 

TENANT:

 

AYTU
BIOSCIENCE, INC, a Delaware corporation

 

By:
___________________________________

Name:

Title:

 

Date:
__________________________________

 

 

 

3Exhibit 4.2

 

DESCRIPTION OF TRANS WORLD CAPITAL STOCK

 

AUTHORIZED CAPITAL STOCK

 

Trans World’s certificate of incorporation
authorizes 200,000,000 shares of common stock, par value $.01 per share, and 5,000,000 shares of preferred stock, par value $.01
per share.

 

COMMON STOCK

 

Each outstanding share
of Trans World common stock is entitled to one vote on all matters submitted to a vote of shareholders, including the election
of directors. All shareholder action may be effected at a duly called meeting at which a quorum is present, except as otherwise
provided by law. A majority of votes cast by shareholders is required for any action to which shareholders are entitled to vote,
except as otherwise provided by law and except that directors are elected by a plurality of votes cast. The holders of Trans World
common stock do not have cumulative voting rights. Dividends may be paid to holders of Trans World common stock when and if declared
by the board of directors out of legally available funds.

 

Holders of Trans World
common stock have no conversion, redemption or preemptive rights. All outstanding shares of Trans World common stock are fully
paid and nonassessable. In the event of any liquidation, dissolution or winding-up of the affairs of Trans World, holders of Trans
World common stock will be entitled to share ratably in the assets of Trans World remaining after payment of creditors and after
the liquidation preference, if any, of preferred stock outstanding at the time.

 

PREFERRED STOCK

 

No shares of preferred
stock have been issued. Trans World’s board may, without further action by Trans World’s shareholders, from time to
time authorize the issuance of up to 5,000,000 shares of preferred stock in series and may, at the time of issuance, determine
the rights, preferences and limitations of each series. Satisfaction of any dividend preferences of outstanding preferred stock
would reduce the amount of funds available for the payment of dividends on Trans World common stock. Also, holders of preferred
stock would normally be entitled to receive a preference payment in the event of any liquidation, dissolution or winding-up of
Trans World before any payment is made to the holders of Trans World common stock. In addition, under certain circumstances, the
issuance of such preferred stock may render more difficult or tend to discourage a merger, tender offer or proxy contest, the assumption
of control by a holder of a large block of Trans World’s securities or the removal of incumbent management. Although Trans
World presently has no plans to issue any shares of preferred stock, the Trans World board, without shareholder approval, may issue
preferred stock with voting and conversion rights that could adversely affect the holders of Trans World common stock.

 

NEW YORK ANTI-TAKEOVER LAW

 

Section 912 of New York
Business Corporation Law prohibits a New York corporation from engaging in a “business combination” with an “interested
shareholder” for a period of five years from the date that such interested shareholder acquired its stock unless such acquisition
or the business combination was approved by the corporation’s board of directors prior to the interested shareholder’s
becoming such. After such five-year period, the business combination must be approved by a majority of shareholders other than
the interested shareholder or the price paid to all shareholders must meet certain conditions relating to the type and minimum
amount of consideration to be paid to shareholders other than the interested shareholder.

 

For purposes of Section
912, a “business combination” includes:

    	 

    	

    

		·	a merger or consolidation,

		·	a sale, lease, pledge or other disposition of assets,

		·	a stock issuance or transfer,

		·	a liquidation or dissolution,

		·	a reclassification of securities,

		·	a recapitalization, or

		·	any transaction in which an interested shareholder benefits disproportionately in relation to any other shareholder.

 

An “interested shareholder”
is defined as any person or entity that currently owns , directly or indirectly, or in the case of affiliates and associates of
the corporation, that owned at any time during the past five years, more than 20% of the outstanding voting stock of the corporation.

 

These provisions may discourage
open market purchases or a non-negotiated tender or exchange offers for the stock of a New York corporation such as Trans World,
and, accordingly, may be adverse to the interests of a shareholder who would desire to participate in such a transaction.

 

BUSINESS COMBINATIONS

 

New York law generally provides that the
consummation of a merger, consolidation, dissolution or disposition of substantially all of the assets of a New York corporation
requires:

 

		·	the approval of the corporation’s board of directors;

		·	the affirmative vote of the holders of two-thirds of all outstanding shares entitled to vote, unless

		o	the corporation’s certificate of incorporation requires only the affirmative vote of a majority of all outstanding shares
entitled to vote thereon, or

		o	the corporation was incorporated after February 22, 1998; and

		·	in certain situations, the affirmative vote by the holders of a majority of all outstanding shares of each class or series
of shares.

 

TRANSFER AGENT AND REGISTRAR

 

Computershare, Inc. is the transfer agent
and registrar for Trans World common stock.

 

AMENDMENTS TO CERTIFICATES OF INCORPORATION

 

Generally, under New York law, proposed
amendments to a corporation’s certificate of incorporation may be authorized by a vote of the board of directors followed
by the vote of a majority of all outstanding shares. If the amendment would adversely affect the rights of any holders of shares
of a class or series, the vote of the holders of a majority of all outstanding shares of that class or series, voting as a class,
is also necessary to authorize the amendment even though they ordinarily would not have voting rights. Trans World’s certificate
of incorporation does not contain any provisions relating to its amendment.

 

AMENDMENTS TO BY-LAWS

 

Under New York law, except as otherwise provided
in its certificate of incorporation, a corporation’s by-laws may be amended, repealed or adopted by a majority of the votes
cast by the shares at the time entitled to vote in the election of any directors. When so provided in its certificate of incorporation
or a by-law adopted by the shareholders, a corporation’s by-laws also may be amended, repealed or adopted by the board but
any by-law adopted by the board may be amended or repealed by the shareholders entitled to vote on the by-law as provided by New
York law.

 

Trans World’s certificate of incorporation
provides that the board of directors is authorized to make, alter or repeal Trans World’s by-laws, but that any by-law adopted
by the board of directors may be amended or repealed the shareholders entitled to vote thereon and the shareholders may at any

    	 

    	

    

time limit the power of the board of directors to amend, alter
or repeal any by-law adopted by the shareholders. Additionally, Trans World’s by-laws provide that the board of directors
may make, alter or repeal Trans World’s by-laws, but that any by-law adopted by the board of directors may be amended or
repealed by the shareholders.

 

PREEMPTIVE RIGHTS

 

Trans World’s certificate of incorporation
provides that no holder of Trans World common stock has any preemptive rights with respect to any shares or other securities of
Trans World.

 

REDEMPTION OF CAPITAL STOCK

 

Trans World’s certificate of incorporation
does not provide for the redemption of any stock.

 

DIVIDEND SOURCES

 

Under New York law, except as otherwise
provided by New York law, a corporation may declare and pay dividends or make other distributions out of surplus only, so that
the net assets of the corporation remaining after the declaration, payment or distribution must at least equal the amount of its
stated capital. A corporation may declare and pay dividends or make other distributions, except when the corporation is insolvent
or would thereby be made insolvent, or when the declaration, payment or distribution would be contrary to any restrictions contained
in the corporation’s certificate of incorporation.

 

SHAREHOLDER ACTION

 

Under New York law, unless otherwise provided
in a corporation’s certificate of incorporation, any action required or permitted to be taken by shareholder vote may be
taken without a meeting on written consent signed by the holders of all outstanding shares entitled to vote or, if the certificate
of incorporation so permits, signed by the holders of outstanding shares having not less than the minimum number of votes that
would be necessary to authorize such action at a meeting. Trans World’s certificate of incorporation does not contain any
provisions relating to shareholder action by written consent.

 

SPECIAL SHAREHOLDER MEETINGS

 

New York law provides that special meeting
of shareholders may be called by the board and by the persons authorized by the certificate of incorporation or the by-laws. New
York law further provides that if, for a period of one month after the date fixed by or under the by-laws for the annual meeting
of shareholders or, if no date has been so fixed, for a period of 13 months after the last annual meeting, there is a failure to
elect a sufficient number of directors to conduct the business of the corporation, the board shall call a special meeting for the
election of directors. If the special meeting is not called by the board within two weeks after the expiration of the period or
if it is called but there is a failure to elect the directors for a period of two months after the expiration of the period, holders
of 10% of the votes of the shares entitled to vote in an election of directors may, demand a special meeting for the election of
directors.

 

Trans World’s by-laws provide that
special meetings of shareholders may be called by the Chairman of the Board, if any, the Chief Executive Officer or a majority
of the board of directors.

 

CUMULATIVE VOTING

 

Under New York law, the certificate of incorporation
of a corporation may provide for cumulative voting in the election of directors. Trans World’s certificate of incorporation
does not provide for cumulative voting.

 

NUMBER AND ELECTION OF DIRECTORS

    	 

    	

    

Subject to certain limitations, New York
law permits the number of directors of a corporation to be fixed by its by-laws, by action of the shareholders or by action of
the board under the specific provision of a by-law adopted by the shareholders. At each annual meeting of the shareholders, directors
are to be elected to hold office until the next annual meeting, except for corporations with classified boards. New York law permits
the certificate of incorporation or the specific provisions of a by-law adopted by the shareholders to provide that directors be
divided into either two, three or four classes. All classes must be as nearly equal in number as possible. The term of office of
one class of directors shall expire each year, with the terms of office of no two classes expiring the same year.

 

Trans World’s certificate of incorporation
provides that all directors elected at the annual meeting of shareholders shall hold office until the next annual meeting of shareholders
and until his or her successor shall be elected and shall qualify, subject, however, to prior death, resignation, retirement, disqualification
or removal from office.

 

Trans World’s by-laws provide that
the number of directors constituting the entire board of directors shall be fixed from by resolution duly adopted from time to
time by a majority of the board of directors. However, no decrease in the number of directors will shorten the term of any incumbent
director.

 

REMOVAL OF DIRECTORS

 

New York law provides that any or all of
the directors may be removed for cause by vote of the shareholders. The certificate of incorporation or the specific provisions
of a by-law adopted by the shareholders may provide for the removal by action of the board, except in the case of any director
elected by cumulative voting, or by the holders of the shares of any class or series, or holders of bonds, voting as a class, when
so entitled by the certificate of incorporation. If the certificate of incorporation or the by-laws so provide, any or all of the
directors may be removed without cause by vote of the shareholders.

 

The removal of directors, with or without
cause, is subject to the following:

 

		·	in the case of a corporation having cumulative voting, no director may be removed when the votes cast against the director’s
removal would be sufficient to elect the director if voted cumulatively; and

		·	if a director is elected by the holders of shares of any class or series, the director may be
removed only by the applicable vote of the holders of the shares of that class or series voting as a class.

 

An action to procure a judgment
removing a director for cause may be brought by the attorney general or by the holders of 10% of the outstanding shares, whether
or not entitled to vote.

 

Trans World’s by-laws provide
that the board of directors, by a vote of not less than a majority of the entire Board, at any meeting thereof, or by written consent,
at any time, may, to the extent permitted by law, remove with or without cause from office or terminate the employment of any director.

 

VACANCIES

 

Under New York law, newly created
directorships resulting from an increase in the number of directors and vacancies occurring in the board for any reason except
the removal of directors without cause may be filled by vote of the board of directors then in office, though less than a quorum.
However, the certificate of incorporation or by-laws may provide that such newly created directorships or vacancies are to be filled
by vote of the shareholders. Unless the certificate of incorporation or the specific provisions of a by-law adopted by the shareholders
provide that the board may fill vacancies occurring on the board by reason of the removal of directors without cause, such vacancies
may be filled only by vote of the shareholders.

    	 

    	

    

A director elected to fill a vacancy,
unless elected by the shareholders, will hold office until the next meeting of shareholders at which the election of directors
is in the regular order of business and until his or her successor is elected and qualified. Unless otherwise provided in the certificate
of incorporation or by-laws, notwithstanding the above, whenever the holders of any class or classes of shares or series are entitled
to elect one or more directors by the certificate of incorporation, any vacancy that may be filled by the board or a majority of
the directors then in office will be filled by a majority of the directors then in office elected by the class or classes or series.
However, if no such director is in office, then the vacancy may be filed as provided above.

 

Trans World’s certificate
of incorporation provides that any and all vacancies in the board of directors, however occurring, including by reason of an increase
in size of the board of directors, or death, resignation, disqualification or removal of a director, shall be filled solely by
appointment via an affirmative vote of a majority of the remaining directors then in office, even if less than a quorum of the
board of directors. Any director so appointed shall serve until the next shareholders’ meeting held for the election of directors
until his or her successor is duly elected and qualified.

 

Trans World’s by-laws provide
that any vacancy in the office of any directors of officer occurring for any reason, including a removal without cause, may be
filled at any time by a majority of the directors then in office, even though less than a quorum remains and the person chosen
will hold office until his successor is elected and qualified.

 

INDEMNIFICATION OF DIRECTORS AND OFFICERS

 

Under New York law, a corporation
may indemnify its directors and officers made, or threatened to be made, a party to any action or proceeding, except for shareholder
derivative suits, if the director or officer acted in good faith, for a purpose which he or she reasonably believed to be in or,
in the case of service to another corporation or enterprise, not opposed to the best interests of the corporation, and, in criminal
proceedings, had no reasonable cause to believe his or her conduct was unlawful. In the case of shareholder derivative suits, the
corporation may indemnify a director or officer if he or she acted in good faith for a purpose which he or she reasonably believed
to be in or, in the case of service to another corporation or enterprise, not opposed to the best interests of the corporation.
However, no indemnification may be made in respect of

 

		·	a threatened action, or a pending action which is settled or otherwise disposed of, or

		·	any claim, issue or matter as to which the person has been adjudged to be liable to the corporation,

 

unless and only to the extent that the court in which the action
was brought, or, if no action was brought, any court of competent jurisdiction, determines upon application that, in view of all
the circumstances of the case, the person is fairly and reasonably entitled to indemnity for the portion of the settlement amount
and expenses as the court deems proper.

 

Any person who has been successful on the
merits or otherwise in the defense of a civil or criminal action or proceeding will be entitled to indemnification. Except as provided
in the preceding sentence, unless ordered by a court pursuant to New York law, any indemnification under New York law pursuant
to the above paragraph may be made only if authorized in the specific case and after a finding that the director or officer met
the requisite standard of conduct by:

 

		·	the disinterested directors if a quorum is available,

		·	by the board upon the written opinion of independent legal counsel, or

		·	by the shareholders.

 

The indemnification described above under New York law is not
exclusive of other indemnification rights to which a director or officer may be entitled by:

		·	the certificate of incorporation or by-laws;

		·	a resolution of shareholders;

		·	a resolution of directors; or

    	 

    	

    

		·	an agreement providing for such indemnification.

 

However, no indemnification may be made
to or on behalf of any director or officer if a judgment or other final adjudication adverse to the director or officer establishes
that his or her acts were committed in bad faith or were the result of active and deliberate dishonesty and were material to the
cause of action so adjudicated, or that he or she personally gained in fact a financial profit or other advantage to which he or
she was not legally entitled.

 

Trans World’s by-laws provide that,
except to the extent expressly prohibited by New York law, Trans World shall indemnify each person made or threatened to be made
a party to any action or proceedings, whether civil or criminal, by reason of the fact that such person is or was a director or
officer of Trans World, or serves or served at the request of Trans World any other corporation, partnership, joint venture, trust,
employee benefit plan or other enterprise in any capacity, against liabilities or losses, incurred in connection with the action
or proceedings, or any appeal. However, no indemnification will be made if a judgment or other final determination adverse to the
person establishes that his or her acts were committed in bad faith or were the result of active and deliberate dishonesty and
were material to the cause of action, or that he or she personally gained in fact a financial profit or other advantage to which
he or she was not legally entitled. Moreover, no indemnification will be required with respect to any settlement or other nonadjudicated
disposition of any threatened or pending action or proceedings unless Trans World has given its prior consent. Trans World’s
by-laws require advances of reasonable expenses incurred in defending or otherwise participating in a proceeding to persons entitled
to indemnification in connection with such proceeding, upon receipt of an undertaking by or on behalf of such person to repay such
amounts if such person is ultimately found not to be entitled to indemnification or, where indemnification is granted, to the extent
those advances exceed the amount to which the person is entitled.

 

LIMITATION OF PERSONAL LIABILITY OF DIRECTORS

 

New York law provides that a corporation’s
certificate of incorporation may contain a provision eliminating or limiting the personal liability of directors to the corporation
or its shareholders for damages for any breach of duty in such capacity. However, no such provision can eliminate or limit the
liability of any director:

 

		·	if a judgment or other final adjudication adverse to such director establishes that such director’s acts or omissions
were in bad faith, or involved intentional misconduct or a knowing violation of law, or that the director personally gained in
fact a financial profit or other advantage to which such director was not legally entitled or that the director’s acts violated
certain provisions of New York law; or

		·	for any act or omission prior to the adoption of such a provision in the certificate of incorporation.

 

Trans World’s certificate of incorporation
contains a provision, eliminating the personal liability of directors to the corporation and the shareholders for damages for any
breach of duty in such capacity except to the extent that such elimination of liability is not permitted under New York law.

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