Document:

Document

EXHIBIT 10.25
December 4, 2020

Jeff A. Jacobson
### #### ##### ##### ####
Chicago, IL 60611
Terms of Separation
Dear Jeff:

This Separation Agreement (“Separation Agreement”) sets forth our understanding regarding your separation from Jones Lang LaSalle Incorporated (including from LaSalle Investment Management (“LaSalle”) and their respective affiliated entities (collectively, the “Company”)) including payment to you pursuant to the Severance Pay Plan of Jones Lang LaSalle Incorporated as amended and restated effective March 15, 2019 (the “Severance Plan”). This Separation Agreement shall be effective only if executed by you and delivered to the Company on or before 5:00 p.m. (Chicago time) on December 20, 2020. You will have seven days after delivering an executed copy of this Separation Agreement to change your mind and revoke your acceptance; if you choose not to revoke your decision during this seven-day period, this Separation Agreement shall become effective on the eighth day following your delivery of the executed Separation Agreement to the Company (the “Effective Date”).

1.    Termination of Employment.

(a)    Transition Date. You and the Company acknowledge that, except as described in Paragraph 1(b) below, your service with the Company in all capacities, including, without limitation, as Chief Executive Officer of LaSalle and as a member of the Global Executive Board (the “GEB”) will terminate at 5:00 p.m. (Chicago time) on December 31, 2020 (the “Transition Date”), irrespective of whether you timely execute and deliver, and do not revoke, this Separation Agreement, and that your position as an employee of the Company will terminate at the end of the Transition Period (as defined below). You agree to take any required actions and to execute any additional documents as the Company determines to be necessary or advisable to effect any of the foregoing. 

(b)    Transition Period Services. From the period (the “Transition Period”) beginning immediately following the Transition Date and ending at 5:00 p.m. on June 30, 2021 (the “End Date”), you will continue as an employee of the Company in the role of Chairman of LaSalle reporting to the CEO of LaSalle and agree to: (i) remain on the LaSalle North America, Continental Europe, UK, Debt and Special Situations and Global Partner Solutions Investment Committees until the End Date unless otherwise requested to resign from one or all of these Investment Committees before the End Date; (ii) provide the Company with such other transition support and services as may be reasonably requested by the Company’s Board of Directors (the “Board”) or the Company’s Chief Executive Officer; and (iii) perform such other duties and services, consistent with your status, as the Board or the Chief Executive Officer shall reasonably request. During the Transition Period, you will be an employee “at will,” and your employment with the Company may be terminated by either party for any reason or no stated reason without any further obligation to you, other than to provide you with the payments and benefits contemplated by Section 2.  

(c)    Base Salary. During the Transition Period, you will receive a monthly base salary of $100,000, payable in accordance with the Company’s normal payroll procedures (or as deferred into the U.S. Deferred Compensation Plan by timely election), and you may continue to participate in the 

Company’s benefit plans that you participated in immediately prior to the Transition Period, subject to the terms and conditions of each such plan or program; provided, however, that you will not be eligible for any additional incentive compensation following the Transition Date, including but not limited to any annual bonus compensation or other Awards (as defined below), except for an award of five (5) points already awarded plus an additional five (5) variable points in the 2020 LaSalle LTIP which will be granted in March 2021 (subject to approval by the Compensation Committee of the JLL Board of Directors) and as otherwise provided herein. Any unpaid salary through the end of the Transition Period will be paid to you on or as soon as practicable following the Transition Period in accordance with ordinary payroll practices. The Company will reimburse you for any outstanding business expenses that were properly incurred through the Transition Period and timely submitted by you for reimbursement pursuant to the applicable policies of the Company.

2.    Payments Upon Termination of Employment.

(a)    Consideration. Subject to the terms and effectiveness of this Separation Agreement, the Company shall provide you with the following:

(i)    Severance; Benefits. Pursuant to the terms of the Severance Plan, the Company shall pay you a cash severance payment in an amount equal to (x) $2,519,231 (equal to fifty-four (54) weeks of base salary at an annual rate of $500,000 plus one (1) times your annual target bonus of $2,000,000), which shall be paid in a single lump sum on December 31, 2020, plus (y) a 2020 annual bonus of $1,600,000 (representing eighty percent (80%) of your annual target), paid on December 31, 2020, (together, the “Severance Payment”), less applicable taxes and withholdings. In addition, if you elect COBRA continuation coverage, the Company shall reimburse you for the additional cost of such continuation coverage on a monthly basis through the earlier to occur of: (A) the end of the Severance Period (as defined below); or (B) such date as you become covered under another employer group plan. Such reimbursements shall be made to you only if you provide to the Company proof of payment of the COBRA premium. For any remaining COBRA period, you will be responsible for paying the full COBRA premium for the actual costs of such insurance coverage. “Severance Period” means the 12-month period beginning immediately following the End Date.

(ii)    Outplacement Services. The Company shall pay for six (6) months of the actual cost to provide the benefits of an executive-level outplacement counseling service selected by the Company. You shall not have the option to take additional compensation in lieu of such benefit. You must commence outplacement services within six (6) months of your End Date.

(b)    Other Benefits. Except as provided under Section 2(a)(i), your continued participation in and any rights, to the extent thereof, under the Company’s 401(k) Retirement and Savings Plan, U.S. Deferred Compensation Plan  and its Medical, Dental, AD&D Optional Insurance, Supplemental Life Insurance, Basic LTD and Spouse Life Insurance Plans shall be subject to the terms of those respective plans.

(c)    Unvested Deferred Compensation and Equity Awards. Any unvested deferred compensation and equity awards, including restricted stock units and performance share units, and any other annual incentive compensation previously awarded to you under the Company Stock Award and Incentive Plan, annual incentive program or any other program, including but not limited to the GEB Long Term Incentive Compensation Plan (the “GEB LTIP”), the LaSalle Long Term Incentive Compensation Plan (“LaSalle LTIP”) or any LaSalle program (collectively, “Awards”), shall be forfeited 

as of the End Date unless you meet the requirements to qualify for retirement status under the applicable plan documents, including but not limited to your agreement to required post-employment restrictive covenants in effect as of the date hereof.  In the event you retire, you will immediately vest or continue to vest in these Awards as set forth in the applicable plan documents. In respect of the foregoing, the Company agrees and acknowledges that upon execution of this Agreement and adherence to its terms, including but not limited to the restrictive covenants set forth below, you will qualify for retirement status effective as of the End Date in respect of the GEB LTIP, the LaSalle LTIP and all of your Company Stock Awards (RSUs and PSUs) granted under the 2017 Stock Award and Incentive Plan and the 2019 Stock Award and Incentive Plan.

3.    No Other Compensation or Benefits. Except as otherwise specifically provided herein, you shall not be entitled to any additional compensation or benefits or to participate in any past, present or future employee benefit programs or arrangements of the Company (including, without limitation, any compensation or benefits under any bonus or severance plan, program or arrangement, whether specified or agreed in your applicable employment document(s) or elsewhere) on or after the Transition Date.

4.    Return of Property. Prior to the End Date, you shall return to the Company all property of the Company in your possession and all property made available to you in connection with your employment by the Company, including, without limitation, any and all Company credit cards, keys, parking access cards, security access codes, records, manuals, customer lists, notebooks, computers, computer programs and files, PDAs, telephones, papers, electronically stored information and documents (and all copies thereof) kept or made by you in connection with your employment, it being acknowledged hereby that all of said items are the sole property of the Company.

5.    Restrictive Covenants.

(a)    No Solicitation.  Until the End Date and for a period of twelve (12) months after the End Date, you shall not yourself, and shall not direct any other person to, either on your own account or on behalf of or with any other person, firm or business entity, do any of the following:

(1)    solicit or induce any employees or independent contractors of the Company (including any individual who was an employee or independent contractor of the Company during the six months preceding the date of this Separation Agreement) to leave the employ or service of the Company;

(2)    solicit or induce any clients that have existing or contracted transactions or assignments with the Company as of the date of this Separation Agreement to discontinue or reduce (x) their transactions or assignments with the Company or (y) their consideration of the Company for pending transactions or assignments; 

(3)    assist, perform services for or have any equity interest in any of the Company’s clients; or

(b)    Non-Compete.  As a condition to the continued vesting of each unvested Award upon retirement, “retirement” shall mean, among other things, that for a period of six (6) months after the End Date you will not, without prior written authorization from JLL’s CEO, such consent not to be unreasonably withheld, directly or indirectly, either on your own account or on behalf of or with any other person, firm or business entity, own, manage, operate or control any business, partnership, firm, corporation, limited liability company or other entity that is engaged, directly or indirectly in the business 

of the Company or serve as an employee, independent contractor, or in any other capacity on behalf of any such person or entity.

If you violate subparagraph 5(b), your separation will not be considered a “retirement,” and you therefore will forfeit any Award that was not vested as of the End Date and must pay the Company an amount equal to any Award that was unvested as of the End Date but that was paid to you after such End Date.

(c)    Intellectual Property. You agree to assign to the Company your entire right, title and interest in any invention or idea, patentable or not, that you create or conceive of (i) from the date of this Separation Agreement until the End Date and for six (6) months thereafter and (ii) which relates in any manner to our actual or anticipated business, research or development, or is suggested by or results from any task the Company assigned to you or any work you performed on behalf of the Company. You agree that you will promptly disclose to the Company any invention or idea contemplated above, and upon request, you will execute a specific assignment of title to the Company and do anything else reasonably necessary to enable the Company at its expense to secure a patent therefore in the United States and in foreign countries.

(d)    Confidentiality and Non-Disclosure of Company Information. You acknowledge and agree that all non-public information concerning the Company, its clients and/or employees that was acquired by or disclosed to you during your employment, including, without limitation, information on the Company’s clients and pricing, business practices and models, business strategies, marketing plans and strategies, compensation structures and the compensation and performance evaluations of the Company’s employees was acquired or disclosed in strict confidence. You shall keep all such information secret and confidential indefinitely and shall not disclose such information, directly or indirectly, to any other person, firm or business entity or to use it in any way. You further acknowledge and agree that you have been provided with confidential information regarding copyrighted materials of the Company, including, without limitation, reference manuals, client proposals, data collection manuals and other proprietary information of the Company. You shall not use this information in any manner and further agree that you will make no attempt, nor provide information to others that would allow them to attempt, to access to the Company’s computer system or those computer systems of the Company’s clients.

However, the parties agree that you may disclose confidential information (i) to the extent necessary to comply with any law, court order or subpoena; (ii) in connection with any discovery request to which a response is required by law; (iii) in a confidential manner either to a federal, state or local government official or to an attorney where such disclosure is solely for the purpose of reporting or investigating a suspected violation of law, (iv) in an anti-retaliation lawsuit or other legal proceeding, so long as that disclosure or filing is made under seal and you do not otherwise disclose such confidential information, except pursuant to court order, or (v) to the extent necessary to enforce your rights hereunder. In the event you are under an obligation to disclose confidential information in any lawsuit or as part of any judicial proceeding, you agree to provide written notice of this fact as far in advance as practicable to the Company’s Legal Services Group and to permit the Company to contest such disclosure on any grounds legally permitted subject to providing you appropriate indemnities and paying your reasonable legal costs in connection with such lawsuit or judicial proceeding .

You acknowledge that, due to your position with the Company, the terms of this Separation Agreement may be publicly disclosed by the Company as and to the extent required by the regulations of the U.S. Securities and Exchange Commission in the Company’s judgment.

(e)    Reasonableness of Restrictions. You acknowledge that the restrictions in this Section 5 are fair and reasonable and are reasonably required for the protection of the Company. You further acknowledge that you will be reasonably able to earn a living without violating the terms of this Section 5, and the restrictions outlined herein are a material inducement and condition to the Company’s provision of the payments and benefits described in this Separation Agreement.  The Company agrees that no further restrictions other than as set forth in this Section 5 shall be applicable to you under this Agreement or any payments made hereunder. 

6.    Whistleblower Rights. You have the legal right to certain protections for cooperating with or reporting legal violations to various governmental entities. No provisions in this Separation Agreement are intended to prohibit you from exercising such rights, and you may do so without disclosure to the Company. The Company may not retaliate against you for any of these activities, and nothing in this Separation Agreement would require you to waive any monetary award or other payment that you might become entitled to from any such governmental entity. Further, nothing in this Separation Agreement precludes you from filing a charge of discrimination with the Equal Employment Opportunity Commission or a like charge or complaint with a state or local fair employment practice agency; provided, however, that as of the Effective Date, you may not receive a monetary award or other personal relief from the Company in connection with any such charge or complaint that you filed or is filed on your behalf.

7.    Release of Claims.

(a)    In consideration of the payments and benefits provided to you under Section 2(a), you, and each of your respective heirs, executors, administrators, representatives, agents, successors and assigns (collectively, the “Releasors”), hereby irrevocably and unconditionally release and forever discharge the Company and their successors, assigns, and any of their stockholders, officers, directors, partners, agents and employees (all of whom are hereinafter referred to as the “Releasees”) from any and all claims, actions, causes of action, rights, judgments, obligations, damages, demands, accountings or liabilities of whatever kind or character (collectively, “Claims”), whether known or unknown, including, without limitation, any Claims under any contract, including your applicable employment documents, the Severance Plan, the GEB LTIP, the LaSalle LTIP, any federal, state, local or foreign law that the Releasors may have, or in the future may possess, including, but not limited to, Claims under Title VII of the Civil Rights Act, the Americans with Disabilities Act, and the Employee Retirement Income Security Act, arising out of (i) your employment relationship with and service as an employee of the Company and the termination of such relationship or service and (ii) any event, condition, circumstance or obligation that occurred, existed or arose on or prior to the date hereof; provided, however, that the Releasors are not releasing any Claims that may not be released under applicable law. The Releasors further agree that the payments and benefits described in this Separation Agreement shall be in full satisfaction of any and all Claims for payments or benefits, whether express or implied, that the Releasors may have against the Releasees arising out of your employment relationship or your service as an employee of the Company and the termination thereof.

(b)    Specific Release of ADEA Claims. In consideration of the payments and benefits provided to you under Section 2(a), you hereby release and forever discharge the Releasees from any and all Claims that you may have as of the date you sign this Separation Agreement arising under the Federal Age Discrimination in Employment Act of 1967, as amended, and the applicable rules and regulations promulgated thereunder (“ADEA”). By signing this Separation Agreement, you hereby acknowledge and confirm that you: (i) have at least twenty-one (21) days to consider the terms of this Separation Agreement; (ii) are waiving all legal claims, including claims under the ADEA, although nothing in this 

Separation Agreement is intended to diminish or otherwise encumber your ability to make a lawful challenge in accordance with the Older Workers Benefit Protection Act to a waiver under the ADEA; (iii) were advised to consult with legal counsel of your own choosing at your expense prior to execution of this Separation Agreement; (iv) fully understand the terms and conditions contained herein; and (v) enter into this Separation Agreement of your own free will and were not under any undue pressure or duress.  Expressly excluded from this release are (a) claims for indemnification and officers’ liability and other insurance coverage to which you are entitled under any Company insurance policy; (b) claims for monies, notices and vested benefits due under any employee benefit plan; (c) claims that cannot be waived by law; and (d) claims that may arise after the date this Separation Agreement is executed. You acknowledge that you have received as consideration for the waivers contained herein money and other benefits in addition to that to which you were already entitled.

(c)    Representations. You hereby represent that you and the other Releasors have not instituted, assisted or otherwise participated in connection with, and that you have no information regarding any potential grounds for, any action, complaint, claim, charge, grievance, arbitration, lawsuit or administrative agency proceeding or action at law or otherwise against any Releasee.

(d)    Updated Release.  You agree to execute and not revoke an updated Separation Agreement immediately after the End Date containing the same language set forth in this Paragraph 7.

8.    Miscellaneous.

(a)    Execution and Delivery. You agree to sign and return to the Company an executed original of this Separation Agreement by mail on or before 5:00 p.m. (Chicago time) on December 20, 2020 If you fail to sign and return this Separation Agreement to the Company on or before 5:00 p.m. (Chicago time) on December 20, 2020, you will not be entitled to receive the additional payments or benefits described in this Separation Agreement.

(b)    Entire Agreement. Except as provided herein, this Separation Agreement sets forth the entire agreement and understanding of the parties hereto with respect to the matters covered hereby and supersedes and replaces any express or implied, written or oral, prior agreement, plan or arrangement with respect to the terms of your employment and the termination thereof which you may have had with the Company. No modifications to this Separation Agreement shall be valid unless made in writing and signed by you and an authorized officer of the Company.

(c)    Remedies. You agree that damages incurred by the Company caused by a breach of Section 5 of this Separation Agreement will be difficult to ascertain. In the event of any material breach by you of any provision of Section 5 of this Separation Agreement that, after written notice by the Company is not cured by you within a reasonable period of time following notice, then in addition to any other remedy available to the Company to enforce such provisions, the Company (i) shall cease to have any obligation to continue to make payments or provide benefits to you under this Separation Agreement, and (ii) may recoup any of the compensation paid under Section 2(a) hereunder and provide for the immediate forfeiture of any unvested equity awards. You further acknowledge that any breach of the provisions in Section 5 above will cause irreparable injury to the Company for which money damages will not provide any adequate remedy. Accordingly, you agree that, in the event you breach any of the provisions in Section 5, the Company shall be entitled to obtain appropriate injunctive and/or other equitable relief for such breach, without the posting of any bond or other security, in addition to all other legal remedies to which it may be entitled, and to the extent applicable, the term of such restrictive covenant shall be extended by a period of time equal to the period of the duration of such breach. If the 

Company believes that a breach has occurred, the Company agrees to promptly notify you in writing, setting forth all details that support the suspicion of a breach. The parties agree to meet as soon as practicable and attempt to resolve the concern.

(d)    Withholding Taxes. Any payments made or benefits provided to you under this Separation Agreement shall be reduced by all applicable withholding taxes and any other authorized or required deductions.

(e)    Waiver. The failure of the Company to enforce any of its terms, provisions or covenants shall not be construed as a waiver of the same or of the right of such party to enforce the same. Waiver by you or the Company of any breach or default by the other party of any term or provision of this Separation Agreement shall not operate as a waiver of any other breach or default.

(f)    Severability. If any court of competent jurisdiction determines that any provision, section, subsection or other portion of this Separation Agreement is invalid, illegal or unenforceable in whole or in part, when such determination shall become final, such provisions or portions shall be deemed to be severed or limited, but only to the extent required to render the remaining provisions and portions of this Separation Agreement enforceable. This Separation Agreement as thus amended shall be enforced to give effect to the intention of the parties insofar as that is possible. However, as allowed by law if you challenge the release of claims in Section 7 and any portion of it were found to be unenforceable, and you file a claim against the Company that otherwise is covered in release of claims, you shall return the consideration paid hereunder to the Company.

(g)    Counterparts. This Separation Agreement may be executed in one or more counterparts, which together shall constitute one and the same agreement.

(h)    Notices. Any notices required or made pursuant to this Separation Agreement shall be in writing and shall be deemed to have been given when delivered or mailed by United States certified mail, return receipt requested, postage prepaid, as follows: Jeff A. Jacobson: at the last home address in the Company’s records; and if to the Company:

Jones Lang LaSalle Incorporated
Attention: Global Chief Legal Officer
200 East Randolph Drive
Chicago, Illinois 60601

or to such other address as either party may furnish to the other in writing in accordance with this Section 8(h). Notices of change of address shall be effective only upon receipt.

(i)    Successors and Assigns. Except as otherwise provided herein, this Separation Agreement shall inure to the benefit of and be enforceable by you and the Company and its respective successors and assigns.

(j)    Governing Law. This Separation Agreement shall be governed by and construed for all purposes according to the laws of the State of Illinois, without regard to any State’s rules regarding conflicts of laws.

(k)    Non-Admission. In executing this Separation Agreement, neither you nor the Company admits to any wrongdoing or violation of any law. The general release in this Separation 

Agreement may not be used in court or other litigation except with respect to a proceeding concerning a breach of the terms of this Separation Agreement.

(l)    Section 409A Compliance. The payments and benefits under this Separation Agreement are intended to either comply with Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations and other official guidance thereunder (“Section 409A”), or be exempt from the application of Section 409A and, accordingly, to the maximum extent permitted, this Separation Agreement shall be interpreted to be in compliance therewith. To the extent that any provision hereof is modified in order to comply with Section 409A, such modification shall be made in good faith and shall, to the maximum extent reasonably possible, maintain the original intent and economic benefit to you and the Company of the applicable provision without violating the provisions of Section 409A. To the extent that any amount payable under this Separation Agreement could be paid in either of two of your taxable years depending on the date that the release of claims provided under this Separation Agreement becomes irrevocable, such amount shall be paid on the later of January 15 of the later such taxable year or the date not later than 30 days after such release of claims becomes irrevocable. Payments due upon your separation from service (as defined under Section 409A) shall be subject to delay pursuant to Section 409A(a)(2)(B)(i) to the extent applicable.
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[signature page follows]

[Signature page to Separation Agreement]

Please indicate your acceptance by signing both originals of this Separation Agreement and returning one such signed original to the Company by mail, attention of the undersigned officer of the Company.

JONES LANG LASALLE INCORPORATED

/s/ Christian Ulbrich             
NAME: Christian Ulbrich
TITLE: President and Chief Executive Officer

YOU HEREBY ACKNOWLEDGE THAT YOU HAVE READ THIS SEPARATION AGREEMENT, THAT YOU FULLY KNOW, UNDERSTAND AND APPRECIATE ITS CONTENTS, AND THAT YOU HEREBY ENTER INTO THIS SEPARATION AGREEMENT VOLUNTARILY AND OF YOUR OWN FREE WILL.

ACCEPTED AND AGREED:

/s/ Jeff A. Jacobson        
Jeff A. Jacobson

Date: December 4, 2020Exhibit 10.1

FIRST Amendment

to

Loan
and security agreement

 

This First Amendment
to Loan and Security Agreement (this “Amendment”) is entered into this 16th day of February, 2021, by and among SILICON
VALLEY BANK, a California corporation (“Bank”), and LIPOCINE INC., a Delaware corporation (“Parent”), and
LIPOCINE OPERATING INC., a Delaware corporation (“Lipocine Operating” and together with Parent, individually and collectively,
jointly and severally, “Borrower”), whose address is 675 Arapeen Drive, Suite 202, Salt Lake City, UT 84108.

 

Recitals

 

A.            Bank
and Borrower have entered into that certain Loan and Security Agreement dated as of January 5, 2018, (as the same may from time
to time be amended, modified, supplemented or restated, the “Loan Agreement”).

 

B.            Bank
has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.            Borrower
has requested that Bank amend the Loan Agreement to (i) release the Pledged Collateral (as defined prior to this Amendment),
and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein.

 

D.            Bank
has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject
to the conditions and in reliance upon the representations and warranties set forth below.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy
of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.             Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement.

 

2.             Amendments to Loan Agreement.

 

2.1           Section 6.2 (Financial Statements, Reports, Certificates). Section 6.2 is amended by deleting the word ‘and’
at the end of clause (g), renumbering clause (h) as clause (i), and inserting a new clause (h), as follows:

 

(h)           prompt
written notice of any changes to the beneficial ownership information set out in sections 2.d, 2.e, 2.f, and 2.g of the Perfection
Certificate (or any equivalent sections of any Perfection Certificate delivered after the Effective Date). Borrower understands
and acknowledges that Bank relies on such true, accurate and up-to-date beneficial ownership information to meet Bank’s regulatory
obligations to obtain, verify and record information about the beneficial owners of its legal entity customers;

 

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2.2          Section 6.6 (Accounts). Section 6.6(a) is hereby amended by adding the following sentence at the end thereof:

 

Borrower
and each Subsidiary of Borrower shall obtain any business credit cards, letters of credit, cash management services, and merchant
processing services exclusively from Bank.

 

2.3          Section 6.11 (Formation or Acquisition of Subsidiaries). Section 6.11 is amended by inserting the phrase “(including,
without limitation, pursuant to a Division)” immediately after the phrase “after the Effective Date”.

 

2.4          Section 6.13 (Financial Trigger). Section 6.13 is deleted in its entirety.

 

2.5          Section 7.1 (Dispositions). Section 7.1 is amended by inserting the phrase “(including, without limitation,
pursuant to a Division)” immediately after the phrase “or otherwise dispose of”.

 

2.6          Section 7.3 (Mergers of Acquisitions). The parenthetical in Section 7.3 of the Loan Agreement is amended in its
entirety and replaced as follows: “(including, without limitation, by the formation of any Subsidiary or pursuant to a Division)”.

 

2.7          Section 7.11 (Financial Trigger Event). Section 7.11 is deleted in its entirety.

 

2.8          Section 13 (Definitions). The following term and its definition set forth in Section 13.1 are amended in
their entirety and replaced with the following:

 

“Loan
Documents” are, collectively, this Agreement and any schedules, exhibits, certificates, notices, and any other documents
related to this Agreement, any Bank Services Agreement, any subordination agreement, any note, or notes or guaranties executed
by Borrower or any Guarantor, and any other present or future agreement by Borrower and/or any Guarantor with or for the benefit
of Bank in connection with this Agreement or Bank Services, all as amended, restated, or otherwise modified.

 

2.9          Section 13 (Definitions). The following terms and their respective definitions set forth in Section 13.1
are deleted in their entirety:

 

“Financial
Trigger Event”

 

“Financial
Trigger Release Event”

 

“Minimum
Cash Collateral Value”

 

“Pledged
Collateral”

 

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2.10        Exhibit A (Collateral Description). The Collateral description is amended in its entirety and replaced with the
Collateral description in the form of Exhibit A attached hereto.

 

3.             Limitation of Amendments.

 

3.1          The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term
or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the
future under or in connection with any Loan Document.

 

3.2          This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations,
warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed
and shall remain in full force and effect.

 

4.             Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents
and warrants to Bank as follows:

 

4.1          Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan
Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations
and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default
has occurred and is continuing;

 

4.2          Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the
Loan Agreement, as amended by this Amendment;

 

4.3          The organizational documents of Borrower most recently delivered to Bank remain true, accurate and complete and have
not been amended, supplemented or restated and are and continue to be in full force and effect;

 

4.4          The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, have been duly authorized;

 

4.5          The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting
Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any
court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational
documents of Borrower;

 

4.6          The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation
of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof,
binding on Borrower, except as already has been obtained or made; and

 

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4.7          This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’
rights.

 

5.             Integration. This Amendment and the Loan Documents represent the entire agreement about this subject matter
and supersede prior negotiations or agreements. All prior agreements, understandings, representations, warranties, and negotiations
between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

 

6.             Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts
taken together shall be deemed to constitute one and the same instrument.

 

7.             Electronic Execution of Documents. Each party hereto may execute this Amendment by electronic means and
recognizes and accepts the use of electronic signatures and records by any other party hereto in connection with the execution
and storage hereof.

 

8.             Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank
of this Amendment by each party hereto, (b) the due execution and delivery to Bank of a Corporate Borrowing Certificate by each
Borrower, (c) the due execution and delivery to Bank of a Perfection Certificate by each Borrower, and (d) payment of Bank’s
legal fees and expenses in connection with the negotiation and preparation of this Amendment.

 

[Signature page follows.]

 

    4 

     

    

 

In
Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first
written above.

 

 

	BANK	BORROWER
	 	 
	SILICON VALLEY BANK	LIPOCINE INC.
	 	 
	 	 
	By:  /s/ Kevin
        Fleischman	By:  /s/ Mahesh Patel
	Name: Kevin
        Fleischman	Name: Mahesh Patel
	Title:  Director	Title:  CEO, President and Chairman
	 	 
	 	 
	 	LIPOCINE OPERATING INC.
	 	 
	 	 
	 	By:  /s/ Mahesh Patel
	 	Name: Mahesh Patel
	 	Title:  CEO, President and Chairman

 

    

     

    

 

EXHIBIT A

 

The Collateral consists of all of Borrower’s
right, title and interest in and to the following personal property:

 

All goods, Accounts (including health-care receivables), Equipment,
Inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements, General Intangibles
(except as provided below), commercial tort claims (including without limitation, Lipocine Inc. vs. Clarus Therapeutics Inc.,
case no. C.A. No. 19-622-WCB, filed in the United States District Court for the District of
Delaware, and any related claims), documents, instruments (including any promissory notes), chattel paper (whether tangible or
electronic), cash, deposit accounts, fixtures, letters of credit rights (whether or not the letter of credit is evidenced by a
writing), securities, and all other investment property, supporting obligations, and financial assets, in each of the foregoing
cases, whether now owned or hereafter acquired, wherever located; and

 

All Borrower’s
Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions for, additions,
attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds of any or
all of the foregoing.

 

Notwithstanding anything
to the contrary herein, the Collateral does not include any of the following, whether now owned or hereafter acquired: (a) more
than sixty-five percent (65%) of the presently existing and hereafter arising issued and outstanding shares of capital stock owned
by Borrower of any Foreign Subsidiary which shares entitle the holder thereof to vote for directors or any other matter; (b) any
intent-to-use trademarks at all times prior to the first use thereof, whether by the actual use thereof in commerce, the recording
of a statement of use with the United States Patent and Trademark Office or otherwise; (c) rights held under a license that are
not assignable by their terms without the consent of the licensor thereof (but only to the extent such restriction on assignment
is enforceable under applicable law); (d) any interest of Borrower as a lessee under an Equipment lease if Borrower is prohibited
by the terms of such lease from granting a security interest in such lease or under which such an assignment or Lien would cause
a default to occur under such lease; provided, however, that upon termination of such prohibition, such interest shall immediately
become Collateral without any action by Borrower or Bank; or (e) Intellectual Property; provided, however, the Collateral shall
include all Accounts and all proceeds of Intellectual Property. If a judicial authority (including a U.S. Bankruptcy Court) would
hold that a security interest in the underlying Intellectual Property is necessary to have a security interest in such Accounts
and such property that are proceeds of Intellectual Property, then the Collateral shall automatically, and effective as of the
Effective Date, include the Intellectual Property to the extent necessary to permit perfection of Bank’s security interest
in such Accounts and such other property of Borrower that are proceeds of the Intellectual Property.

 

Pursuant to the terms
of Section 7.5 and except for Permitted Liens, Borrower has agreed not to encumber any of its Intellectual Property without Bank’s
prior written consent.

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