Document:

Blueprint

  Exhibit 10.5

 

VOTING AGREEMENT

 

THIS
VOTING AGREEMENT (this “Agreement”) is made and entered
into as of November 1,
2019, by and among Cerecor, Inc., a Delaware corporation
(“Cerecor”),
Aytu Bioscience Inc., a Delaware corporation (the
“Company”) and
the stockholder of the Company listed on Schedule A hereto
(“Securityholder”). Capitalized
terms used but not defined herein are used as they are defined in
the Purchase Agreement (as defined below).

 

RECITALS:

 

A.           Securityholder
is an officer of the Company and owns beneficially and of record
the shares of capital stock set forth opposite
Securityholder’s name on Schedule A hereto (such shares
of capital stock, together with any other shares of capital stock
of the Company acquired by Securityholder after the date hereof and
during the term of this Agreement, being collectively referred to
herein as the “Subject
Securities”).

 

B.           Upon
the date hereof, Cerecor and the Company have consummated that
certain Asset Purchase Agreement, dated as of October 31, 2019 (the
“Purchase
Agreement”) between Cerecor and the Company, pursuant
to which the Company has issued 9,805,845 shares of its Series G
Preferred Stock to Cerecor (the “Preferred Stock”).

 

C.           Pursuant
to the Purchase Agreement the Company has also agreed to seek
approval by its stockholders of the conversion into common stock of
the Company of all the outstanding shares of Preferred Stock (the
“Preferred
Conversion”).

 

D.           In
order to facilitate the Preferred Conversion and the consummation
of the Merger Agreement (as defined below), Securityholder, solely
in Securityholder’s capacity as holder of the Subject
Securities and as an officer of the Company, has entered into this
Agreement and agrees to be bound hereby.

 

NOW
THEREFORE, in consideration of the promises and the covenants and
agreements set forth below, and for good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

 

1. Agreement to Vote Shares. At
any meeting of stockholders of the Company or at any adjournment
thereof that may take place between now and the date that is twelve
(12) months from the date hereof (the “Agreement Period”), in any action
by written consent or in any other circumstances upon which
Securityholder’s vote, consent or other approval is sought
during such period relating to the Preferred Conversion,
Securityholder shall vote (or cause to be voted), as applicable,
all of the Subject Securities that are then entitled to be voted
(i) in favor of the Preferred Conversion and (ii) against any
proposal, amendment, matter or agreement that would in any manner
impede, frustrate, prevent or nullify the Preferred Conversion.
Additionally, during the Agreement Period, Securityholder agrees to
vote all of the Subject Securities in favor of the proposed
transactions set forth in that certain Agreement and Plan of
Merger, dated as of September 12, 2019, by and among the Company,
Innovus Pharmaceuticals, Inc., a Nevada corporation, and the other
parties thereto (the “Merger
Agreement”). Securityholder agrees that the Subject
Securities that are entitled to be voted shall be voted (or caused
to be voted) as set forth in the preceding sentences whether or not
Securityholder’s vote, consent or other approval is sought on
only one or on any combination of the matters set forth in this
Section 1 and at any time or at multiple times during the term of
this Agreement.

 

 

1

 

 

2. Opportunity to Review.
Securityholder acknowledges receipt of the Purchase Agreement and
the Merger Agreement and represents that he, she, or it has had (i)
the opportunity to review, and has read, reviewed and understands,
the terms and conditions of the Purchase Agreement, the Merger
Agreement and this Agreement, and (ii) the opportunity to review
and discuss the Purchase Agreement, the Merger Agreement and this
Agreement with his, her or its own advisors and legal
counsel.

 

3. Public Disclosure;
Confidentiality.

 

(a) The Securityholder
understands that it may be the recipient of confidential
information of the Company (“Confidential Information”) during
the term of this Agreement and that such information may contain or
constitute material non-public information concerning the Company.
The Securityholder acknowledges that trading in the securities of
any party to this Agreement while in possession of material
nonpublic information or communicating that information to any
other Person who trades in such securities could subject the
applicable party to liability under the U.S. federal and state
securities laws, and the rules and regulations promulgated
thereunder, including Section 10(b) of the Securities Exchange Act
of 1934, as amended, and Rule 10b-5 promulgated thereunder. The
Securityholder agrees that it and its Affiliates will not disclose
Confidential Information in its possession, nor will it trade in
the securities of the Company while in possession of material
nonpublic information or at all until the Securityholder and its
Affiliates can do so in compliance with all applicable laws and
without breach of this Agreement.

 

(b) If the
Securityholder is required to disclose any Confidential Information
by legal process, the Securityholder shall: (a) take reasonable
steps to preserve the privileged nature and confidentiality of the
Confidential Information, including requesting that the
Confidential Information not be disclosed to non-parties or the
public; (b) give the Company prompt prior written notice of such
request or requirement so that the Company may seek an appropriate
protective order or other remedy; and (c) cooperate with the
Company (at the Company’s expense) to obtain such protective
order. In the event that such protective order or other remedy is
not obtained, the Securityholder (or such other Persons to whom
such request is directed) will furnish only that portion of the
Confidential Information which, on the advice of the
Securityholder’s counsel, is legally required to be disclosed
and, upon the Company’s request, use its commercially
reasonable efforts to obtain assurances that confidential treatment
will be accorded to such information.

 

4. Representations and Warranties of
Securityholder. Securityholder hereby represents and
warrants as follows:

 

(a) Securityholder (i)
is the record and beneficial owner of the Subject Securities, free
and clear of any liens, adverse claims, charges or other
encumbrances of any nature whatsoever (other than pursuant to (x)
restrictions on transfer under applicable securities laws, or (y)
this Agreement), and (ii) does not beneficially own any securities
of the Company (including options, warrants or convertible
securities) other than the Subject Securities.

 

(b) Except with respect
to obligations under the Company’s Bylaws, Securityholder has
the sole right to transfer, to vote (or cause to vote) and to
direct (or cause to direct) the voting of the Subject Securities,
and none of the Subject Securities are subject to any voting trust
or other agreement, arrangement or restriction with respect to the
transfer or the voting of the Subject Securities (other than
restrictions on transfer under applicable securities laws), except
as set forth in this Agreement.

 

 

2

 

 

(c) Securityholder, if
not a natural person: (i) is duly organized, validly existing and
in good standing under the laws of its jurisdiction of
organization, and (ii) has the requisite corporate, company,
partnership or other power and authority to execute and deliver
this Agreement, to consummate the transactions contemplated hereby
and to comply with the terms hereof. The execution and delivery by
Securityholder of this Agreement, the consummation by
Securityholder of the transactions contemplated hereby and the
compliance by Securityholder with the provisions hereof have been
duly authorized by all necessary corporate, company, partnership or
other action on the part of Securityholder, and no other corporate,
company, partnership or other proceedings on the part of
Securityholder are necessary to authorize this Agreement, to
consummate the transactions contemplated hereby or to comply with
the provisions hereof.

 

(d) This Agreement has
been duly executed and delivered by Securityholder, constitutes a
valid and binding obligation of Securityholder and, assuming due
authorization, execution and delivery by the other parties thereto,
is enforceable against Securityholder in accordance with its terms,
except as such enforceability may be limited by (i) bankruptcy,
insolvency, reorganization, moratorium, fraudulent transfer or
other similar laws affecting or relating to creditors’ rights
generally, and (ii) the availability of injunctive relief and other
equitable remedies.

 

(e) The execution and
delivery of this Agreement, the consummation of the transactions
contemplated hereby and compliance with the provisions hereof do
not and will not conflict with, or result in (i) any violation or
breach of, or default (with or without notice or lapse of time, or
both) under, any provision of the organizational documents of
Securityholder, if applicable, (ii) any material violation or
breach of, or default (with or without notice or lapse of time, or
both) under any (A) statute, Law, ordinance, rule or regulation or
(B) judgment, order or decree, in each case, applicable to
Securityholder or its properties or assets, or (iii) any material
violation or breach of, or default (with or without notice or lapse
of time, or both) under any material contract, trust, commitment,
agreement, understanding, arrangement or restriction of any kind to
which Securityholder is a party or by which Securityholder or
Securityholder’s assets are bound.

 

5. Termination. This Agreement
shall terminate automatically upon the later to occur of the
approval of the Preferred Conversion by the Company’s
stockholders or the approval of the Merger Agreement by such
stockholders; provided, however, that this Agreement
will also terminate if the approval of the Preferred Conversion has
occurred and the Company has elected to terminate the Merger
Agreement in accordance with its terms prior to approval of the
Merger Agreement by the Company’s stockholders. In the event
of the termination of this Agreement, this Agreement shall
forthwith become null and void, there shall be no liability on the
part of any of the parties, and all rights and obligations of each
party hereto shall cease; provided, however, that no such
termination of this Agreement shall relieve any party hereto from
any liability for any breach of any provision of this Agreement
prior to such termination.

 

6. Further Covenants and
Assurances. During the term of this Agreement,
Securityholder hereby, to the extent permitted by Laws, waives and
agrees not to exercise any dissenters’ or appraisal rights,
or other similar rights, with respect to any Subject Securities
which may arise in connection with the transactions contemplated by
the Merger Agreement.

 

 

3

 

 

7. Deposit. Securityholder shall
cause a counterpart of this Agreement to be deposited, in
electronic or physical form, with the Company at its principal
place of business or registered office where it shall be subject to
the same right of examination by any stockholder, in person or by
agent or attorney, as are the books and records of the
Company.

 

8. Remedies. Securityholder
acknowledges that money damages would be both incalculable and an
insufficient remedy for any breach of this Agreement by it, and
that any such breach would cause the Company and Cerecor
irreparable harm. Accordingly, Securityholder agrees that in the
event of any breach or threatened breach of this Agreement, the
Company and Cerecor, in addition to any other remedies at law or in
equity each may have, shall be entitled to seek immediate equitable
relief, including injunctive relief and specific performance,
without the necessity of proving the inadequacy of money damages as
a remedy and without the necessity of posting any bond or other
security, to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof in any court of the
United States or any state having jurisdiction.

 

9.  Notices. All notices and other
communications hereunder shall be in writing and shall be deemed to
have been duly given when personally delivered, or if sent by
United States certified mail, return receipt requested, postage
prepaid, shall be deemed duly given on delivery by United States
Postal Service, or if sent by e-mail or receipted overnight courier
services shall be deemed duly given on the Business Day received if
received prior to 5:00 p.m. local time or on the following Business
Day if received after 5:00 p.m. local time or on a non-Business
Day, addressed to the respective parties as follows:

 

(i) 

if to the Company,
to:

 

Aytu
Bioscience, Inc.

373
Inverness Parkway, Suite 206

Englewood,
CO 80112

Attention:
Joshua Disbrow

 

with a
required copy (which shall not constitute notice) to:

 

Dorsey & Whitney LLP

111
S. Main Street, Suite 2100

Salt
Lake City, UT 84111

Attention: Nolan Taylor

 

(ii) 

if to Cerecor,
to:

 

Cerecor,
Inc.

540
Gaither Road, Suite 400

Baltimore,
MD 20850

Attention:
Joseph Miller

 

with a
required copy (which shall not constitute notice) to:

 

Wyrick
Robbins Yates & Ponton LLP

4101
Lake Boone Trail, Suite 300

Raleigh, NC
27607

Attention: Don
Reynolds

 

 

4

 

 

(iii) 

if to
Securityholder, to the address set forth on Schedule A hereto.

 

10. Severability. Any provision
hereof that is prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the
remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the
extent permitted by Law, each party hereby waives any provision of
Law that renders any such provision prohibited or unenforceable in
any respect.

 

11. Entire Agreement/Amendment.
This Agreement (including the provisions of the Purchase Agreement
referenced herein) represent the entire agreement of the parties
with respect to the subject matter hereof and supersede all prior
agreements and understandings, both written and oral, among the
parties with respect to the subject matter hereof. This Agreement
may not be amended, modified, altered or supplemented except by
means of a written instrument executed and delivered by the parties
hereto.

 

12. Governing Law. This Agreement,
and all claims or causes of action (whether in contract, tort or
otherwise) that may be based upon, arise out of or relate to this
Agreement or the negotiation, execution or performance of this
Agreement, shall be governed by and construed in accordance with
the internal Laws of the State of Delaware without reference to its
choice of law rules. Each party agrees that any legal action or
other legal proceeding relating to this Agreement or the
enforcement of any provision of this Agreement shall be brought or
otherwise commenced exclusively in the Court of Chancery of the
State of Delaware or any federal court of competent jurisdiction in
the State of Delaware. Each of the parties consents to service of
process in any such proceeding in any manner permitted by the Laws
of the State of Delaware, and agrees that service of process by
registered or certified mail, return receipt requested, at its
address specified pursuant to Section 11 of this Agreement is reasonably calculated
to give actual notice. Each party waives and agrees not to assert
(by way of motion, as a defense or otherwise), in any such legal
proceeding commenced in such courts, any claim that such party is
not subject personally to the jurisdiction of such courts, that
such legal proceeding has been brought in an inconvenient forum,
that the venue of such proceeding is improper or that this
Agreement or the subject matter hereof or thereof may not be
enforced in or by such courts. EACH PARTY HEREBY IRREVOCABLY WAIVES
ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR THE ACTIONS OF SUCH PARTY
IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT
HEREOF.

 

13. Counterparts. This Agreement
may be executed by delivery of electronic signatures and in two or
more counterparts, each of which shall be deemed an original, and
it shall not be necessary in making proof of this Agreement or the
terms hereof to produce or account for more than one of such
counterparts.

 

[SIGNATURE
PAGES FOLLOW]

 

 

 

 

 

5

 

 

In Witness Whereof, the parties
have caused this Agreement to be executed as of the date first
above written.

 

	
 

	

Securityholder

 

 

By:                                                                

Name:

Title:

 

 

 

 

 

[Signature
Page to Voting Agreement]

 

 

In Witness Whereof, the parties
have caused this Agreement to be executed as of the date first
above written.

 

	
 

	

AYTU
BIOSCIENCE INC.

 

 

By:                                                               

Name:

Title:

 

 

 

 

 

[Signature
Page to Voting Agreement]

 

 

In Witness Whereof, the parties
have caused this Agreement to be executed as of the date first
above written.

 

 

	
 

	

CERECOR,
INC.

 

 

By:                                                               

Name:

Title:

 

 

 

 

[Signature Page to
Voting Agreement]Blueprint

  Exhibit 10.6

 

CONSENT AND LIMITED WAIVER AGREEMENT

 

This
Consent and Limited Waiver Agreement (this “Waiver”) is entered into
as of the November 1, 2019, by and among Peter Steelman
(“Steelman”), James Flynn
(“Flynn”), and Deerfield
CSF, LLC, on behalf of itself and its affiliates
(“Deerfield”, and
collectively with Steelman and Flynn, the “Deerfield Parties”),
Avadel U.S. Holdings, Inc. and its subsidiaries and affiliates
(collectively, “Avadel”), Armistice
Capital Master Fund, Ltd. (“Armistice”), Cerecor Inc.
(“Cerecor”), Aytu
BioScience, Inc. (“Buyer”) and Aytu
Therapeutics LLC (“Aytu
Therapeutics”).

 

RECITALS

 

WHEREAS, the
Deerfield Parties and Avadel (including through its affiliated
entities) are parties to that certain Membership Interest Purchase
Agreement dated as of February 5, 2016, as may be amended from time
to time (the “Deerfield
Agreement”);

 

WHEREAS, pursuant
to that certain Asset Purchase Agreement dated February 12, 2018
(the “Prior
APA”), Cerecor purchased from Avadel certain assets
and assumed certain liabilities, including certain of
Avadel’s liabilities under the Deerfield
Agreement;

 

WHEREAS, Cerecor
and Buyer have entered into an Asset Purchase Agreement dated as of
October 10, 2019 (the “APA”) pursuant to which
Buyer will purchase certain assets from Cerecor and assume certain
of Cerecor’s liabilities, including all of Cerecor’s
assets and liabilities arising under the Deerfield Agreement and,
to the extent related to or arising out of the operation of the
Business (as defined in the APA) after the Closing (as defined in
the APA), the Prior APA (the “Asset
Purchase”);

 

WHEREAS, each of
Armistice and Cerecor have agreed to enter into Guarantees in favor
of the Deerfield Parties in substantially the forms attached hereto
as Exhibits A-1 and
A-2 (the “Armistice Guaranty” and
“Cerecor
Guarantee”, respectively, and collectively, the
“Guarantees”);

 

WHEREAS, Armistice
has agreed to deposit $15,000,000 (the “Escrow Funds”) in an
escrow account (the “Escrow Account”) governed
by that certain escrow agreement dated on or about the date hereof
by and among Armistice, the Deerfield Parties and JPMorgan Chase
Bank, N.A. (the “Escrow Agent”), in
substantially the form attached hereto as Exhibit B (the “Escrow Agreement”) for
the purpose of securing the portion of the Primary Obligations
under the Armistice Guarantee comprised of the balloon payment of
$15,000,000 due to the Deerfield Parties by Buyer on the last
business day of January 2021 or earlier in accordance with Section
1.6(g) of the Deerfield Agreement (the “Balloon Payment
Obligation”);

 

WHEREAS, neither
Buyer nor Cerecor would agree to consummate the Asset Purchase
without the prior written consent, release and limited waiver of
and by Avadel and the Deerfield Parties as set forth herein;
and

 

WHEREAS, in
consideration of Buyer’s agreement to assume certain
liabilities under the Deerfield Agreement as set forth in the APA,
as well as the Escrow Agreement and the Guarantees, the Deerfield
Parties and Avadel desire to provide this consent, release and
limited waiver.

 

 

1

 

 

NOW,
THEREFORE, in consideration of the premises and of the mutual
covenants, conditions and agreements set forth herein and for other
good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto, intending to be
legally bound, hereby agree as follows.

 

1. Defined Terms. Capitalized
terms used herein (including in the preamble and recitals above)
but not otherwise defined herein have the meanings ascribed to them
in the Deerfield Agreement.

 

2. Reliance. The parties hereto
acknowledge and agree that the effectiveness of the Deerfield
Parties’ consent and waiver, as set forth in Sections 6 and 7
below, is contingent upon (a) Armistice entering into the Escrow
Agreement and depositing $15,000,000 in the Escrow Account
thereunder, (b) Armistice and Cerecor entering into the Guarantees
and (c) payment by Cerecor of the attorney fees incurred by the
Deerfield Parties in connection with transactions contemplated
hereby.

 

3. Security
Arrangements.

 

(a) In the event that
the Deerfield Parties do not receive payment of the Balloon Payment
Obligation in full when due and the Escrow Funds are still in the
Escrow Account, then, upon written request from Deerfield,
Armistice and the Deerfield Parties shall sign and deliver to the
Escrow Agent a joint written instruction sufficient under the
Escrow Agreement to cause the Escrow Agent to deliver Escrow Funds
to the Deerfield Parties in an amount sufficient such that the
Deerfield Parties receive the amount of the Balloon Payment
Obligation in full with any excess Escrow Funds being disbursed to
Armistice. The Deerfield Parties acknowledge and agree that they
will seek payment from the Escrow Funds pursuant to this Section
3(a) before requesting payment from Avadel pursuant to the Avadel
Guarantee; provided, that such agreement
does not limit the rights of the Deerfield Parties pursuant to the
Avadel Guarantee in the event that payment is not timely made from
the Escrow Funds with respect to the Balloon Payment
Obligation.

 

(b) In the event that
the Deerfield Parties do receive payment of the Balloon Payment
Obligation in full when due and the Escrow Funds are still in the
Escrow Account, then, upon written request from Armistice,
Armistice and the Deerfield Parties shall sign and deliver to the
Escrow Agent a joint written instruction sufficient under the
Escrow Agreement to cause the Escrow Agent to deliver the Escrow
Funds to Armistice.

 

(c) In
the event that Armistice arranges for an Acceptable Letter of
Credit to be issued in favor of the Deerfield Parties, then, upon
written request from Armistice, Armistice and the Deerfield Parties
shall sign and deliver to the Escrow Agent a joint written
instruction sufficient under the Escrow Agreement to cause the
Escrow Agent to deliver the Escrow Funds to Armistice. An
“Acceptable Letter of Credit” means a letter of credit
that is (i) issued by a bank domiciled in the United States
acceptable to Deerfield, (ii) on a form acceptable to Deerfield,
(iii) is in the amount of $15,000,000, (iv) is for the benefit of
the Deerfield Parties, (v) does not expire until the last business
day of February 2021, and (vi) permits the Deerfield Parties to
draw on such letter of credit immediately if the Deerfield Parties
do not receive payment of the Balloon Payment Obligation in full
when due.

 

 

2

 

 

4. Assumption. Buyer acknowledges
and agrees that: (i) it has assumed all obligations under the
provisions of the Deerfield Agreement set forth on Appendix A; (ii)
this limited waiver of the Asset Purchase as an Acceleration
Trigger Event only applies to the Asset Purchase and any future
events, facts or circumstances that constitute an Acceleration
Trigger Event are not waived; (iii) the definition of “Net
Sales” in the Deerfield Agreement shall hereby be deemed to
include, among other items, the amounts invoiced for sales of
Products by or on behalf of Buyer or any of its Affiliates or any
direct or indirect assignee or licensee of Buyer or any of its
Affiliates; and (iv) the audit rights of the Deerfield Parties in
Section 1.6(d) of the Deerfield Agreement shall apply to the books
and records of Buyer and its Affiliates.

 

5. Security Interest.
Buyer’s subsidiary, Aytu Therapeutics, which will hold the
Purchased Assets (as defined below), hereby pledges, assigns,
hypothecates, transfers and grants to the Deerfield Parties, a
first priority lien upon and security interest in, all of its
right, title and interest in and to the Purchased Assets (as
defined in the APA) to the extent such Purchased Assets were also
“Purchased Assets” under the Prior APA. The Purchased
Assets shall secure the full and prompt payment, at any time and
from time to time as and when due (whether at the stated payment
date, by acceleration or otherwise), of Buyer’s obligations
under the provisions of the Deerfield Agreement set forth on
Appendix A. Buyer and the Deerfield Parties acknowledge that the
Purchased Assets constitute the FSC Assets Collateral for purposes
of Buyer’s obligations under the provisions of the Deerfield
Agreement set forth on Appendix A (including, without limitation,
Sections 1.7(b) and (c)).

 

6. Deerfield Consent and Limited
Waiver. The Deerfield Parties hereby (i) consent to the
Asset Purchase and Cerecor and Buyer’s entry into the APA for
all purposes, (ii) represent and warrant to Cerecor and Buyer that
to the actual knowledge of Steelman and Flynn no breach of the
Deerfield Agreement exists as of the date hereof and no such breach
will occur as a result of the consummation of the Asset Purchase,
(iii) agree that the Asset Purchase is not, and will not be deemed
to be, an Acceleration Trigger Event, (iv) irrevocably waive all
rights with respect to Section 1.6(g) of the Deerfield Agreement
only in connection with the Asset Purchase (but not any future
events), (v) irrevocably waive, discharge and release Cerecor and
Buyer from any claim that Cerecor or Buyer is in breach of Section
1.6(g) of the Deerfield Agreement only as a result of the Asset
Purchase (but not any future events), (vi) agree that the
provisions of the Deerfield Agreement set forth on Appendix A hereto (as such obligations
may be expressly modified therein with respect to the Deferred
Consideration and each Deferred Payment related thereto), and all
obligations of Cerecor arising thereunder, are assigned to Buyer,
and (vii) agree that if (a) Buyer is current in its payment
obligations to the Deerfield Parties and (b) makes a payment
to the Deerfield Parties in advance of such payment being due and
payable (a “Prepayment”), then Buyer
may designate whether such Prepayment is deemed to be a Fixed
Payment or a Deferred Payment.

 

7. Avadel Consent and Release. In
accordance with Section 7.6 of the Prior APA, Avadel hereby (a)
consents to Cerecor’s assignment to Buyer of all
Cerecor’s rights, interests and obligations under the Prior
APA and Cerecor and Buyer’s entry into the APA for all
purposes, and (b) represents and warrants to Cerecor and Buyer that
to the actual knowledge of Avadel no breach of the Prior APA exists
as of the date hereof and no such breach will occur as a result of
the consummation of the Asset Purchase. Avadel, on behalf of itself
and its Affiliates, hereby releases Cerecor from all obligations
under the Prior APA. Avadel further acknowledges and agrees to the
modification of the payment terms with respect to the Deferred
Consideration and Deferred Payments pursuant to the APA and agrees
that such modification is hereby incorporated into the terms of the
Deerfield Agreement, subject to the guarantee of such obligations
by Armistice pursuant to the Armistice Guarantee. Avadel also
acknowledges and agrees that its Guarantee (the “Avadel Guarantee’) issued
on February 16, 2018, in favor of the Deerfield Parties remains in
full force and effect notwithstanding the assignment of the
Obligations (as defined in the Avadel Guarantee) to Buyer and the
modification of the payment terms with respect to the Deferred
Consideration and Deferred Payments.

 

 

3

 

 

8. No Breach. Cerecor hereby
represents and warrants that no breach of the Deerfield Agreement
exists as of the date hereof.

 

9. No Modification. Except as
amended, waived or consented to hereby, the Deerfield Agreement
remains unmodified and in full force and effect.

 

10. Successors and Assigns. The
provisions of this Waiver will inure to the benefit of and be
binding on each of the Deerfield Parties, Cerecor and Buyer and
their permitted assigns (if any).

 

11. Governing Law. This Waiver
shall be governed by, and construed, interpreted and enforced in
accordance with, the laws of the Delaware. Any legal action or
proceeding with respect to this Waiver will be brought solely and
exclusively in any state or federal court of competent jurisdiction
in Delaware. By execution and delivery of this Waiver, each party
hereto hereby irrevocably consents to and accepts, for itself and
in respect of its property, generally and unconditionally the sole
and exclusive jurisdiction of such courts. Each party hereto hereby
further irrevocably waives any objection, including any objection
to the laying of venue or based on the grounds of forum non
conveniens, which it may now or hereafter have to the bringing of
any action or proceeding in such jurisdiction in respect of this
Waiver.

 

12. Notice. Each party and express
beneficiary irrevocably consents to the service of process out of
any of the courts referred to in this Waiver in any such suit,
action or proceeding by the mailing of copies thereof by registered
or certified mail, postage prepaid, to it at its address set forth
in the Deerfield Agreement, or with respect to Cerecor, to:
Cerecor, Inc., 540 Gaither Road, Suite 400, Rockville, Maryland
20850, attention: Joe Miller, via email: jmiller@cerecor.com, with
a copy (that does not constitute notice) to Wyrick Robbins Yates
& Ponton LLP, 4101 Lake Boone Trail, Suite 300, Raleigh, North
Carolina 27607, attention: Don Reynolds, via email:
dreynolds@wyrick.com, or with respect to Buyer, to: Aytu
BioScience, Inc., 373 Inverness Parkway, Suite 206, Englewood,
Colorado 80112, attention: David Green, CFO, via email:
dgreen@aytubio.com, with a copy (that does not constitute notice)
to Dorsey & Whitney, 111 S Main Street, Suite 2100, Salt Lake
City, UT 84111, attention: Nolan Taylor, or with respect to
Armistice, to: Armistice Capital Master Fund, Ltd., 510 Madison
Avenue, 22nd Floor, New York, NY
10022, attention: Anthony Cordone, via email:
acordone@armisticecapital.com. Each party irrevocably waives any
objection to such service of process and further irrevocably waives
and agrees not to plead or claim in any suit, action or proceeding
commenced hereunder that service of process was in any way invalid
or ineffective. Nothing herein shall affect the right of a party to
serve process on the other party in any other manner permitted by
law.

 

13. Counterparts. This Waiver may
be executed in any number of counterparts, and by different parties
hereto in separate counterparts, each of which when so delivered
shall be deemed an original, but all of which counterparts shall
constitute but one and the same instrument. Any counterpart may be
executed by facsimile or pdf signature and such facsimile or pdf
signature shall be deemed an original.

 

 

4

 

 

14.   
Disclosure.
 On or before 8:00 a.m.,
New York time, on the business day immediately following the date
hereof, Buyer shall file a
Current Report on Form 8-K meeting all of the requirements of Item
1.01 thereof, which Form 8-K shall disclose the closing of the
transactions contemplated by the APA, disclose all the material
terms of the transactions contemplated by this Waiver and the
Guarantees (and any previously undisclosed terms of the APA) and
shall attach each of the APA (to the extent not previously publicly
filed), this Waiver and the Guarantees, in each of their
entireties.  Each of Avadel, Cerecor, and Buyer (each a
“Disclosing Party”) expressly acknowledges, represents
and agrees that after such filing, (i) all material, non-public information
(if any) provided or made available to the Deerfield Parties and
their affiliates (and their respective agents and representatives)
 by such Disclosing Party or any of its officers, directors,
employees, affiliates or agents in connection with the transactions
contemplated by the APA, the Prior APA, this Waiver, the Guarantees, or
otherwise prior to the date hereof, shall have been publicly
disclosed. and (ii) that from and after such filing, the
Deerfield Parties and their affiliates (and their respective agents
and representatives) shall not have any duty to any Disclosing
Party of trust or confidence with respect to, or a duty to any
Disclosing Party not to trade in any securities on the basis of,
any information regarding such Disclosing Party (unless expressly
agreed to by such Deerfield Party in a written definitive and
binding and binding agreement executed by such Disclosing Party and
Deerfield Party or customary oral (confirmed by e-mail) “wall
cross” agreement).

 

 

 

[Signature
Page Follows]

 

 

 

 

 

 

 

 

 

5

 

 

IN
WITNESS WHEREOF, the parties hereto have executed this Consent and
Limited Waiver Agreement as of the day and year first above
written.

 

	

DEERFIELD
PARTIES:

	

Deerfield
CSF, LLC

	
 

	
 

	
 

	
 

	
 

	

By:_________________________________

	
 

	
 

	

Name:_______________________________

Title:________________________________

	
 

	
 

	
 

	
 

	
 

	
 ____________________________________

	
 

	

Peter
Steelman

	
 

	
 

	
 

	
 

	
 

	
 

	
____________________________________

	
 

	
 

	

James
Flynn

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

 

 

 

 

[Signature
Page to Consent, Release and Limited Waiver Agreement]

 

 

AVADEL:

 

Avadel
U.S. Holdings, Inc.

 

	

By:
____________________________________

	
 

	
Name: ____________________________________

Title: 
____________________________________

	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Consent, Release and Limited Waiver Agreement]

 

 

ARMISTICE

 

Armistice
Capital Master Fund, Ltd.

 

	

By:
____________________________________

	
 

	
Name: ____________________________________

Title: 
____________________________________

	
 

      

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Consent, Release and Limited Waiver Agreement]

 

 

CERECOR:

 

Cerecor
Inc.

 

	

By:
____________________________________

	
 

	
Name: ____________________________________

Title: 
____________________________________

	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Consent, Release and Limited Waiver Agreement]

 

 

 

BUYER:

 

Aytu
BioScience, Inc.

 

	

By:
____________________________________

	
 

	
Name: ____________________________________

Title: 
____________________________________

	
 

 

 

 

 

BUYER
SUBSIDIARY:

 

Aytu
Therapeutics LLC

 

	

By:
____________________________________

	
 

	
Name: ____________________________________

Title: 
____________________________________

	
 

 

 

 

 

 

 

 

 

[Signature
Page to Consent, Release and Limited Waiver Agreement]

 

Schedule I

Fixed Payments

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