Document:

Blueprint

 

 

Exhibit 10.1

 

 

 

WAIVER AND AMENDMENT

 

This
Waiver and Amendment (this “Waiver”) is made effective as of
November 29, 2019, by and between Acerus Pharmaceuticals
Corporation, a Canadian corporation, having offices at 2486 Dunwin
Drive, Mississauga, ON L5L IJ9, Canada (“Acerus”), and Aytu Bioscience,
Inc., Delaware corporation, having offices at 373 Inverness
Parkway, Suite 206, Englewood, CO 80112 (“Aytu”). Reference is made herein
to the Amended and Restated License and Supply Agreement, dated as
of July 29, 2019 (the “Agreement”), by and between Acerus
and Aytu. Capitalized terms used herein but not otherwise defined
shall have the meanings ascribed to them in the
Agreement.

 

WHEREAS, Section 2.5(a) of the Agreement
provides that the closing of the Agreement and the other
transactions contemplated thereby shall take place following the
satisfaction or waiver (to the extent not prohibited by Applicable
Law) of the conditions set forth in Section 2.5(c) of the
Agreement, which requires that Acerus raise at least $10,000,000 of
gross proceeds of additional capital through one or more series of
transactions occurring prior to the date that is six months after
the A&R Signing Date (the “Closing Condition”);

 

WHEREAS, the Parties desire to waive the
Closing Condition, as well as certain other closing deliverables,
and to close the transactions contemplated by the Agreement as of
November 29, 2019;

 

WHEREAS, in connection with the A&R
Closing, the Parties desire to set forth certain additional
amendments and agreements of the Parties relating to, among other
things, the Sales Representatives on each Party’s Sales
Force; and

 

WHEREAS, in accordance with Section 15.9
of the Agreement the Parties desire to set forth the waivers,
amendments and agreements described below.

 

NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:

 

1.      A&R
Closing. The Parties hereby agree to waive as of the date
hereof: (a) the Closing Condition set forth in Section 2.5(c) of
the Agreement and (b) the requirement set forth in Section
2.5(d)(i)(2) that Acerus deliver at the A&R Closing a
certificate certifying that the capital raise has been closed.
Accordingly, A&R Closing Date shall occur simultaneously with
the execution of this Waiver, and Acerus shall deliver the
following deliverables set forth in Section 2.5(d) promptly
following the A&R Closing Date and in any event no later than
December 6, 2019:

 

a. 

Acerus shall
deliver, or cause to be delivered, to Aytu (i) a payment of
$[●] to reimburse Aytu for half of specific direct costs that
were previously paid by Aytu to Acerus associated with
serialization of Product and (ii) a payment of $[●], which is
its portion of the 2020 FDA user fee; and

 

2.      Transfer
of Regulatory Submissions. Promptly following the A&R
Closing (and in any event within ten (10) Business Days thereafter,
the Parties agree to cooperate in good faith to execute and submit
all letters and documents necessary to transfer the Product NDA to
Acerus, in accordance with Section 4.1 of the
Agreement.

 

 

 

 

 

 

3.      Sales
Force Matters.

 

a. 

Employee Transition. In
accordance with Section 6.2(c) of the Agreement, the Parties agree
that the individuals listed on Schedule 1 attached hereto (the
“Transitioned
Employees”) will be transitioned to Acerus as of
December 1, 2019 in accordance with this Section 3.

 

i. 

Promptly following
the A&R Closing Date, Aytu will execute and deliver to each
Transitioned Employee a letter, in substantially the form attached
hereto as Exhibit
A, describing such transition, including the proposed formal
transfer of employment to Acerus (the “Transition Letter”). Aytu will use
commercially reasonable efforts to ensure that each Transitioned
Employee promptly executes a Transition Letter.

 

ii. 

In connection with
such transition, from December 1, 2019 until the date on which the
Parties and the applicable Transitioned Employee mutually agree to
formally transfer such Transitioned Employee’s employment to
Acerus, but in no case later than June 30, 2020, (such period, the
“Employee Transition
Period”), Acerus shall (A) assume commercial
responsibility and costs for the sales territories for which such
Transitioned Employees are responsible, as listed on Schedule 1, as well as the
additional sales territories listed on Schedule 1 for which a Sales
Representative is not currently assigned, and (B) assume sole
responsibility for management direction and hiring and firing
decisions regarding such Transitioned Employee. The Parties intend
that during the Employee Transition Period the Transitioned
Employees will present themselves during Details as representatives
of Acerus (or its Affiliate), including carrying Acerus business
cards, and will report directly to the applicable members of
Acerus’ management team. For clarity, following December 1,
2019, Aytu will ensure that none of its Sales Representatives
Detail or otherwise Promote the Product in the sales territories
listed on Schedule
1 in the Acerus Sales Channel (as defined in the A&R
Agreement).

 

iii. 

During the Employee
Transition Period, Aytu shall maintain such Transitioned Employee
on its payroll and other administrative plans as an employee of
Aytu, subject to voluntary resignation by such Transitioned
Employee and Ordinary Course Terminations and Reassignments, as
determined by Acerus; provided that, for clarity, in no event shall
Aytu terminate employment of or reassign any Transitioned Employee
during the Employee Transition Period without Acerus’ prior
written consent.

 

 

 

 

 

b. 

Employee Costs. During the
Employee Transition Period, all employment and other direct costs
associated with the Transitioned Employees (i.e., meal budget, car
reimbursement, travel, etc.) set forth on Schedule 2 (the
“Employee
Costs”) will be paid for by Acerus on a quarterly
basis (in arrears), which amounts will be deducted from the
quarterly Acerus Commissions Payments payable by Aytu to Acerus
pursuant to Section 7.1(a) of the Agreement. For the avoidance of
doubt, the Employee Costs set forth on Schedule 2 are actual costs
incurred by Aytu from January through October 31, 2019 (T&E
costs) and November 15, 2019 (all other Employee Costs) are
illustrative of the expected Employee Costs. Actual Employee Costs
for which Aytu will be reimbursed by Acerus are expected to differ
based on Transitioned Employees’ actual sales performance,
medical and other benefit plan selections for calendar 2020,
travel, meal spending, car utilization, etc. following Closing. If
the Employee Costs for a given quarter exceed the Acerus
Commissions Payment for such quarter, such negative balance will be
rolled over to the next quarter; provided, that if Employee Costs
exceed Acerus Commissions Payments for three consecutive quarters,
any remaining balance payable to Aytu will be paid by Acerus at the
end of the next quarter.

 

c. 

Transition Period
Activities.

 

i. 

The Parties
acknowledge and agree that Schedule 6.2(a) of the Agreement is
hereby deleted in its entirety and replaced with the attached
Schedule
3.

 

ii. 

In addition to the
activities described on Schedule 3, the Parties agree
that until the earlier of (1) written notice from Acerus and (2)
June 30, 2020, Aytu will continue to provide the following
materials and access to Acerus and the Transitioned
Employees:

 

1. 

Promotional
Materials in amounts and at times consistent with that which was
provided to the Transitioned Employees as Aytu employees prior to
the A&R Closing Date;

 

2. 

Access to the call
reporting and data management tools specific to the Transitioned
Employees and their respective customers and territories/region;
and

 

3. 

The items set forth
on Schedule 4 hereto.

 

d. 

Sales Force Size
Requirements.

 

i. 

The Parties hereby
acknowledge and agree that the requirements for the Aytu
Product-Specific Sales Force set forth in Section 6.3(a)(i)(1) of
the Agreement shall be deleted in their entirety and replaced with
the following:

 

“(1) for the
first twelve (12) months following the A&R Closing Date, a
number of Sales Representatives on a Full Time Basis that is not
less than twenty (20) and a mutually agreed number of sales force
managers appropriate to manage the Sales
Representatives;”

 

 

 

 

 

 

ii. 

The Parties hereby
acknowledge and agree that the requirements for the Acerus
Product-Specific Sales Force set forth in Section 6.3(a)(ii)(1)-(2)
of the Agreement shall be deleted in their entirety and replaced
with the following:

 

“(1) at least
fifteen (15) Sales Representatives on a Full Time Basis on the date
that is the twelve (12)-month anniversary of the A&R Closing
Date; and”

 

For
clarity, the Transitioned Employees shall count towards the
requirements for the Acerus Product-Specific Sales Force during the
Employee Transition Period.

 

iii. 

After the first
twelve (12) months following the A&R Closing Date, each Party
will be responsible for employing a Product-Specific Sales Force
consistent with the requirements set forth in Section 6.3 of the
Agreement.

 

4.      This
Waiver shall be effective immediately after its due execution by
the undersigned. This Waiver may be executed in any number of
counterparts, each such counterpart shall be deemed an original
instrument, and all such counterparts together shall constitute but
one agreement. This Waiver may be executed and delivered by email
(.pdf), and upon such delivery the email (.pdf) signature will be
deemed to have the same effect as if the original signature had
been delivered. This Waiver shall be governed by the internal law
of the State of Delaware, without regard to its principles of
conflicts of laws.

 

5.      Except
for the specific provisions waived or amended herein, the Agreement
shall remain in full force and effect and in accordance with its
terms. This Waiver shall be limited solely for the purpose and to
the extent expressly set forth herein and nothing herein expressed
or implied shall constitute an amendment, supplement, modification
or waiver to any of other term, provision or condition of the
Agreement.

 

[SIGNATURE
PAGES FOLLOW]

 

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Waiver to be
executed by their duly authorized representatives, as of the date
first written above.

 

 

ACERUS
PHARMACEUTICALS CORPORATION

 

 

By:    
   /s/ Edward
Gudaitis                 

Name:  
Edward Gudaitis

Title:    
President and Chief Executive Officer

 

 

AYTU
BIOSCIENCE, INC.

 

By:    
   /s/ Joshua
Disbrow                
 

Name:  
Joshua Disbrow

Title:   
Chief Executive Officer

 

 

 

[Signature
Page to Waiver]

 

 

Schedule 1

 

Transitioned Employees and Territories

 

[Omitted
Intentionally]

 

 

 

 

Schedule 2

 

Employee Costs*

 

[Omitted Intentionally]

 

 

 

 

 

Schedule 3

 

Schedule 6.2(a)

Transition Period Activities

 

[Omitted
Intentionally]

 

 

 

 

 

Schedule 4

 

[Omitted Intentionally]

 

 

 

 

 

Exhibit A

 

Form of Transition LetterExhibit 10.1

 

*** Text omitted pursuant to Item
601(a)(6) of Regulation S-K

 

EMPLOYMENT AGREEMENT

 

This
Employment Agreement (this “Agreement”) is made as of November 27, 2019 (the “Effective
Date”) between Jerash Holdings (US), Inc., with an address of 260 East Main Street, Suite 2706, Rochester, New York
14604 USA (“Company”), and Gilbert Lee, with an address at *** (“Employee”)
(Company and Employee are each a “Party” and collectively the “Parties”).

 

Whereas,
Employee is experienced in financial management; and

 

Whereas,
Company desires to retain Employee to provide general financial services and Employee agrees to provide such services, in accordance
with the terms and conditions set forth in this Agreement;

 

Now,
Therefore, in consideration of the premises, mutual covenants, terms and conditions contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereby agree as follows:

 

1.          
Services. Employee shall serve as an executive officer and his title shall be Chief Financial Officer of Company.
Employee will provide general financial services to Company, as further described in Attachment A - (the “Services”).
Employee shall provide such services as Company may reasonably request.

 

2.          
Appointment; Term. Company hereby appoints Employee and Employee hereby accepts appointment as Chief Financial
Officer for Company, subject to the terms and conditions of this Agreement. The term of this Agreement shall commence on the Effective
Date and shall continue for twelve (12) months (the “Term”).

 

3.          
Use of Company Facilities, Equipment. Employee shall not have a dedicated workspace or equipment at Company
offices and shall not have set hours for the performance of the Services. Company may authorize use of certain Company facilities
and services, including, but not limited to, use of temporary office space and Company equipment related to authorized projects,
as long as such use does not interfere with the day-to-day operations of Company.

 

4.          
Ownership of Work Product. All work product developed by Employee, in whole or in part, either alone or jointly
with others, during the Term and any subsequent renewal term, which may relate in any manner to the actual or anticipated business,
work, research or development of Company, or which result, to any extent, from the Services performed by Employee for Company,
or use of Company’s Confidential Information (as defined below), will be the sole property of Company.

 

5.          
Compensation.

 

A.          As consideration for the Services, Company shall pay Employee a base salary of USD $120,000 per annum (before tax), payable
not less frequently than monthly.

 

B.          In addition, as soon as administratively practicable following the Effective Date, Company shall grant to Employee an option
to purchase fifty thousand (50,000) shares of Company’s common stock (the “Option”) under the Jerash
Holdings (US), Inc. Amended and Restated 2018 Stock Incentive Plan (the “Plan”) and an award agreement
under the Plan. The Option shall have an exercise price per share equal to the fair market value of one share of Company’s
common stock on the date of grant, as determined in accordance with the Plan, and shall have a ten-year term. The date of grant
of the Option shall be the date on which Company’s compensation committee approves the grant of the Option. Subject to Employee’s
continued employment with Company, the Option shall become vest and become exercisable in full on the six-month anniversary of
the date of grant.

 

     

     

    

 

6.          
Expenses. Company shall promptly reimbursement Employee for all reasonable travel related expenses incurred
in the ordinary course of providing services outlined in this Agreement. Reimbursable expenses shall not be limited to but shall
include reasonable costs of airfare, hotels, business meals when traveling, and mileage reimbursement. Employee shall provide a
formal accounting of all expenses including receipts on a monthly basis for approval and payment.

 

7.          
Termination. This Agreement shall automatically renew unless terminated by either Party. This Agreement may
be terminated upon mutual written consent of the Employee and Company. At any time after the twelve (12) months hereof, Employee
may terminate this Agreement (a) upon thirty (30) days’ prior written notice to Company or (b) immediately if Employee is
subject to materially diminished duties or responsibilities, provided that should a replacement Chief Financial Officer be retained
by Company, such retention of the replacement shall not constitute diminished duties or responsibilities. Company may terminate
this Agreement (i) without prior notice and without further obligation for reasons of just cause (e.g., fraud, theft, conviction
of a felony, improper or dishonest action or significant acts of misconduct) on the part of Employee or any of Employee’s
agents providing services to Company, and (ii) without just cause upon thirty (30) days’ written notice to Employee. This
Agreement shall automatically terminate upon the death of Employee. In the event of the termination of this Agreement, Company
shall pay Employee the base salary through the date of termination.

 

8.          
Notices. Any notice or other communication required or which may be given hereunder shall be in writing and
shall be delivered personally, electronically, telecopied or sent by certified, registered or express mail, postage prepaid, to
the Parties at the following addresses or at such other addresses as shall be specified by the Parties by like notice, and shall
be deemed given when so delivered personally, electronically, telecopied or if mailed, five (5) days after the date of mailing,
as follows:

 

If to Company:

 

Jerash Holdings
(US), Inc.

19/F, Ford
Glory Plaza

37-39 Wing
Hong Street

Cheung Sha
Wan, Kowloon

Hong Kong

 

Or through
electronic mail at ***

 

Attn: Choi
Lin Hung

 

If to Employee:

 

Gilbert Lee

***

***

 

Or through
electronic mail at ***

 

    	 	2	 

     

    

 

9.          
Confidentiality; Non-Solicitation.

 

A.          Employee shall keep secret and retain the confidential nature of all Confidential Information (as defined herein) belonging
to Company and take such other precautions with respect thereto as Company, in its sole discretion, may reasonably request. Employee
shall not at any time, whether before or after the termination of this Agreement, use, copy, disclose or make available any Confidential
Information (as defined herein) to any corporation, governmental body, individual, partnership, trust or other entity (a “Person”);
except that Employee may use, copy or disclose to any Person any Confidential Information (as defined herein) (i) to the extent
required in the performance of the Services, (ii) to the extent it becomes publicly available through no fault of Employee, and
(iii) to the extent Employee is required to do so pursuant to applicable law or court order.

 

B.           For purposes of this Agreement, “Confidential Information” shall mean all information pertaining to the affairs
and operations of Company that is not generally available to the public and that Company desires to keep confidential, including,
but not limited to, trade secrets, inventions, financial information, information as to customers, clients or patients, and suppliers,
sales and marketing information, and all documents and other tangible items relating to or containing any such information. Employee
acknowledges that the Confidential Information is vital, sensitive, confidential and proprietary to Company.

 

C.           All Confidential Information disclosed or made available by Company to Employee shall at all times remain the personal property
of Company and all documents, lists, plans, proposals, records, electronic media or devices and other tangible items supplied to
Employee that constitute or contain Confidential Information shall, together with all copies thereof, and all other property of
Company, be returned to Company immediately upon termination of this Agreement for whatever reason or sooner upon demand.

 

D.          Notwithstanding the foregoing, nothing in this Agreement shall (i) prohibit Employee from making reports of possible violations
of federal law or regulation to any governmental agency or entity in accordance with the provisions of and rules promulgated under
Section 21F of the Securities Exchange Act of 1934 or Section 806 of the Sarbanes-Oxley Act of 2002, or of any other whistleblower
protection provisions of state or federal law or regulation, or (ii) require notification or prior approval by Company of any reporting
described in clause (i).

 

E.           Pursuant
to The Defend Trade Secrets Act (18 USC § 1833(b)), Employee may not be held criminally or civilly liable under any federal
or state trade secret law for disclosure of a trade secret: (i) made in confidence to a government official, either directly
or indirectly, or to an attorney, solely for the purpose of reporting or investigating a suspected violation of law; and/or (ii)
in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Additionally, Employee,
if suing Company for retaliation based on the reporting of a suspected violation of law, may disclose a trade secret to his attorney
and use the trade secret information in the court proceeding, so long as any document containing the trade secret is filed under
seal and Employee does not disclose the trade secret except pursuant to court order.

 

F.           Employee
acknowledges that a breach of the provisions of this Section 9 shall cause irreparable harm to Company for which it will have
no adequate remedy at law. Employee agrees that Company may, in its sole discretion, obtain from a court of competent jurisdiction
an injunction, restraining order or other equitable relief in favor of itself restraining Employee from committing or continuing
any such violation. Any right to obtain an injunction, restraining order or other equitable relief hereunder will not be deemed
a waiver of any right to assert any other remedy which Company may have in law or in equity.

 

    	 	3	 

     

    

 

G.          
Additionally, during the Term, Employee shall not induce or solicit Company’s employees, agents, Employees, contractors,
clients, and customers away from Company on its behalf or on behalf of any other company or person. Employee agrees that this
Section 9, the scope of the territory covered, the actions restricted thereby, and the duration of such covenant are reasonable
and necessary to protect the legitimate business interests of Company.

 

H.          
The confidentiality and non-solicit obligations set forth herein shall survive for a period of twelve (12) months after
the termination or expiration of this Agreement.

 

10.          Indemnification. Employee and Company shall mutually indemnify, defend (with counsel chosen by Company), and
hold each other harmless from and against any and all claims, losses, damages, liabilities, actions, costs and expenses, including,
but not limited to, reasonable legal fees and expenses, paid or incurred by the other party and arising directly and indirectly
out of: (i) any breach of this Agreement by the either party, (ii) any breach by either party of written policies or standards
for Company or (iii) any other act or omission of either party.

 

11.         
Miscellaneous.

 

A.          Tax Withholding. Company may withhold from Employee any amounts payable under this Agreement such federal, state
or local taxes as shall be required to be withheld pursuant to any applicable law or regulation.

 

B.           Governing Law; Jurisdiction and Venue. This Agreement shall be governed and controlled as to validity, enforcement,
interpretation, construction, effect and in all other respects by the laws of the State of New York and the federal laws of the
United States applicable therein, without giving effect to any choice of law or conflict of law rules or provisions that would
cause the application of the laws of any jurisdiction. In the event that any legal proceedings are commenced in any court with
respect to any matter arising under this Agreement, Employee and Company hereto specifically consent and agree that the venue of
any such action shall be in the courts of the State of New York, County of Onondaga and each of Employee and Company hereby waive
any claim that such venue is an inconvenient forum for the resolution of such proceeding.

 

C.           Entire Agreement. This Agreement constitutes the entire agreement of the Parties hereto and supersedes any prior
agreement or understanding, whether oral or written, between the Parties hereto with respect to the subject matter hereof.

 

D.          Waivers and Amendments. This Agreement may not be amended or modified otherwise than by a written agreement executed
by the Parties. No delay on the part of any Party in exercising any right, power or privilege hereunder shall operate as a waiver
thereof, nor shall any waiver on the part of any Party of any right, power or privilege hereunder, nor any single or partial exercise
of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power
or privilege hereunder.

 

E.           Assignment. This Agreement may not be assigned by either Party without the prior written consent of a duly authorized
officer of the other Party. The merger or consolidation of a Party, or the sale of all or substantially all of the assets or shares
of a Party hereto, shall not be deemed an assignment of this Agreement.

 

F.           Headings.
The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning or interpretation of
this Agreement.

 

    	 	4	 

     

    

 

G.          
Severability. If any term, provision, covenant or restriction of this Agreement, or any part thereof, is held by
a court of competent jurisdiction of any foreign, federal, state, county or local government or any other governmental, regulatory
or administrative agency or authority to be invalid, void, unenforceable or against public policy for any reason, the remainder
of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way
be affected, impaired or invalidated.

 

H.          
Counterparts. This Agreement may be executed in one or more counterparts, including by means of facsimile or email,
each of which shall be deemed an original and all of which together shall constitute one and the same instrument.

 

[Signature page follows.]

 

    	 	5	 

     

    

 

In
Witness Whereof, the Parties have entered into this Employment Agreement as of the Effective Date set forth above.

 

	 	Jerash Holdings (US), Inc.
	 	 
	 	 
	 	By:	/s/ Choi Lin Hung
	 	Name:	Choi Lin Hung
	 	Title:	President
	 	 
	 	Employee
	 	 
	 	 
	 	 	/s/ Gilbert Lee
	 	Name:	Gilbert Lee

 

    	 	6	 

     

    

 

Exhibit A – Services

 

		•	Lead all SEC filing, including but not limited to filings
of 10Q and 10K

		•	Lead all US company filings including tax and US registration

		•	Ensure that adequate controls are established and maintained
over financial reporting

		•	Investor relations matters

		•	Work with other management team members, bankers, attorneys,
and accountants in evaluation, development, and execution of company strategy

		•	Support M&A activities

 

    	 	7

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