Document:

Exhibit 10.5

 

WARRANT AMENDMENT AGREEMENT

 

This Warrant Amendment
Agreement (this “Agreement”), dated as of September __, 2020, is by and between Neurotrope, Inc.,
a Nevada corporation (the “Company”), and the undersigned holder (the “Holder”) of Series H
warrants to purchase shares of the Company’s common stock, $0.0001 par value (the “Common Stock”).

 

WHEREAS, the Holder
beneficially owns Series H warrants to purchase shares of Common Stock at an exercise price of $1.65 per share that were issued
in January 2020, as set forth on the Holder's signature page hereto (the “Original Warrants”).

 

WHEREAS, the Company
and the Holders desire to amend and restate the Original Warrants to (a) reduce the exercise price thereof from $1.65 to $1.50
per share, (b) extend the Termination Date of the Original Warrants from January 23, 2025 to either (i) the five
year anniversary of the closing of the mergers contemplated by the Merger Agreement (as defined below), or (ii) if the Merger
Agreement is terminated or the mergers contemplated thereby have not been consummated, January 23, 2026, (c) revise the
Original Warrants to provide that in the event of a spin-off (the “Spin-Off”) of Neurotrope Bioscience, Inc.
or any other entity or entities containing the existing business of the Company (collectively, the “Spin-Off Company”),
the Holder shall only receive, in lieu of any other consideration, warrants, in the form attached hereto as Exhibit A
(the "Spin-Off Warrants"), to purchase a number of shares of Spin-Off Company based on the same ratio as the ratio
used to determine the number of shares of common stock of Spin-Off Company that common stockholders of the Company will receive
in the Spin-Off, as more fully described in the following WHEREAS clause, and (d) delete Section 2(f) of the Original
Warrants. The initial exercise price of the Spin-Off Warrants will be determined by dividing $20 million by the number of shares
of common stock of Spin-Off Company outstanding immediately after the Spin-Off, excluding any shares issued in connection with
a financing of Spin-off Company after the date hereof. As used herein "Merger Agreement" means that certain Agreement
and Plan of Merger and Reorganization dated as of May 17, 2020 among the Company, Petros Pharmaceuticals, Inc., PM Merger
Sub 1, LLC, PN Merger Sub 2, Inc. and Metuchen Pharmaceuticals LLC (the "Original Merger Agreement"), as
such Original Merger Agreement may be (i) amended from time to time or have any provision thereof waived from time to time,
in each case that results in the stockholders of the Company owning 49% or more of the outstanding common stock of the combined
company at the closing of the mergers contemplated by such Merger Agreement and is not, and is not reasonably expected to be, otherwise
detrimental to the Holder, or (ii) in the event of an amendment or waiver that does not meet the standards of (i) above,
is amended from time to time or have any provision thereof waived from time to time, in each case with the prior written consent
of holders of a majority of the Series H Warrants who have signed this Agreement or agreements substantially similar to this
Agreement.

 

WHEREAS, the number
of shares of common stock underlying the Spin-Off Warrants shall be determined by using the same ratio used to determine how many
shares of Spin-Off Company that the common stockholders of the Company will receive in the Spin-Off, it being contemplated as of
the date of this Agreement that the Spin-Off will result in each common stockholder of the Company receiving one share of the Spin-Off
Company for every five shares of the Company owned by such stockholder (the “Spin-Off Ratio”).  Although
the Spin-Off Ratio may change depending on a number of factors, the number of shares of common stock of the Spin-Off Company underlying
the Spin-Off Warrants will be based on the final Spin-Off Ratio.  In other words, assuming that the final Spin-Off Ratio is
the same as the currently contemplated Spin-Off Ratio, the Spin-Off Warrants will be exercisable for one share of Spin-Off
Company for every five shares of Company Common Stock underlying your Original Warrants.  If the Spin-Off Ratio changes
after the date of this Agreement, so will the ratio applicable to the Spin-Off Warrants.

 

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WHEREAS, pursuant to
Section 5(l) of the Original Warrants, the Original Warrants may be modified or amended or the provisions thereof waived
with the written consent of the Company and the Holder.

 

NOW, THEREFORE, IN
CONSIDERATION of the mutual covenants contained in this Agreement, and for good and valuable consideration the receipt and adequacy
of which are hereby acknowledged, the Holder and the Company hereby agree as follows:

 

1. Amendment
and Restatement of the Original Warrants. The Company and the Holder hereby consent and agree to the amendment and restatement
of the Original Warrants in the form attached hereto as Exhibit B, which shall supersede and replace the Original Warrants
in their entirety.

 

2. Registration.
The Company shall use its commercially reasonable efforts to have declared effective a registration statement under the Securities
Act of 1933, as amended (the “Securities Act”) of Spin-Off Company permitting the sale of the shares underlying
the Spin-Off Warrants at the time of the Spin-Off or as soon thereafter as is practicable.

 

3. Spin-Off
Warrants. The Company agrees to cause the Spin-Off Company to issue to the Holder upon consummation of the Spin-Off, the Spin-Off
Warrants exercisable for the number of shares and at the exercise price determined as provided in the preceding WHEREAS clauses.
The Company and the Holder hereby acknowledge and agree that there can be no assurance that the Spin-Off shall occur, but the amendments
to the Original Warrants pursuant to this Agreement shall be effective regardless.

 

4. Representations
and Warranties of the Company. The Company hereby makes the representations and warranties set forth below to the Holder that
as of the date of its execution of this Agreement.

 

(a) Authorization;
Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated
by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement
by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action
on the part of such Company and no further action is required by such Company, its board of directors or its stockholders in connection
therewith. This Agreement has been duly executed by the Company and, when delivered in accordance with the terms hereof will constitute
the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as
limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution
provisions may be limited by applicable law.

 

(b) Organization.
The Company is a duly organized and validly existing corporation in good standing under the laws of the State of Nevada.

 

(c) No Conflicts.
The execution, delivery and performance of this Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s certificate or
articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default
(or an event that with notice or lapse of time or both would become a default) under, result in the creation of any lien upon any
of the properties or assets of the Company, or give to others any rights of termination, amendment, acceleration or cancellation
(with or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other material instrument
(evidencing Company debt or otherwise) or other material understanding to which the Company is a party or by which any property
or asset of the Company is bound or affected, or (iii) conflict with or result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company is subject
(including federal and state securities laws and regulations), or by which any property or asset of the Company is bound or affected.

 

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(d) Disclosure.
All of the disclosure furnished by or on behalf of the Company to the Holder regarding the Company and its Subsidiaries, their
respective businesses and the transactions contemplated hereby, including but not limited to the disclosure set forth in the SEC
Reports, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. As used
herein, “SEC Reports” means all reports, schedules, forms, statements and other documents required to be filed
by the Company with the Securities and Exchange Commission (the “Commission”) pursuant to the reporting requirements
of the Securities Exchange Act of 1934, as amended (the "1934 Act"), including all exhibits included therein and
financial statements, notes and schedules thereto and documents incorporated by reference therein.

 

(e) No Integrated
Offering. None of the Company, its Subsidiaries or any of their affiliates, nor any Person acting on their behalf has, directly
or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would
require approval of shareholders of the Company for purposes of any applicable shareholder approval provisions, including, without
limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of
the Company are listed or designated for quotation. None of the Company, its Subsidiaries, their affiliates nor any Person acting
on their behalf will take any action or steps that would cause the offering of any of the Securities to be integrated with other
offerings for purposes of any such applicable shareholder approval provisions.

 

(f) No Disqualification
Events. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the 1933 Act,
none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company
participating in the offering hereunder, any beneficial owner of 20% or more of the Company's outstanding voting equity securities,
calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act) connected
with the Company in any capacity at the time of sale (each, an "Issuer Covered Person" and, together, "Issuer
Covered Persons") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to
(viii) under the 1933 Act (a "Disqualification Event"), except for a Disqualification Event covered by Rule 506(d)(2) or
(d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification
Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished
to the Holder a copy of any disclosures provided thereunder.

 

5.            Representations
and Warranties of the Holder. The Holder hereby makes the representations and warranties set forth below to the Company that
as of the date of its execution of this Agreement.

 

(a)            Due
Authorization. The Holder represents and warrants that (i) the execution and delivery of this Agreement by it and the
consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on its behalf and
(ii) this Agreement has been duly executed and delivered by the Holder and constitutes the valid and binding obligation of
the Holder, enforceable against it in accordance with its terms except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’
rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other
equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law..

 

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(b)            Ownership
of Original Warrants. The Holder is the sole legal and beneficial owner of the Original Warrants, and has good, valid and marketable
title and interest (legal and beneficial) to the Original Warrants free and clear of any lien, encumbrance, pledge, charge, security
interest, mortgage, option, equity or other adverse claim, and has not (a) assigned, transferred, hypothecated, pledged or
otherwise disposed of the Original Warrants or its ownership rights in the Original Warrants, or (b) given any person or entity
any transfer order, power of attorney or other authority of any nature whatsoever with respect to the Original Warrants. The Holder
agrees to indemnify the Company for any breach of the foregoing representation.

 

(c)            Holder
Status. The Holder represents and warrants that is an “accredited investor” as defined in Rule 501 under the
Securities Act.

 

6. Disclosure of
Transactions and Other Material Information. The Company shall file a current report on Form 8-K on or before 8:30 a.m.,
New York City time, on September [   ]1,
2020, describing the terms of the transactions contemplated by this Agreement, all in the form required by the 1934 Act and attaching
the form of this Agreement (and all schedules and exhibits thereto not otherwise attached), as exhibits to such filing (including
all attachments, the "8 K Filing"). As of immediately following the filing of the 8-K Filing with the Commission,
the Holder shall not be in possession of any material, nonpublic information received from the Company, any of its Subsidiaries
or any of their respective officers, directors, employees, affiliates or agents, that is not disclosed in the 8-K Filing or in
prior filings with the Commission. In addition, effective upon the filing of the 8-K Filing, the Company acknowledges and agrees
that any and all confidentiality or similar obligations under any agreement, whether written or oral, between the Company, any
of its Subsidiaries or any of their respective officers, directors, employees, affiliates or agents, on the one hand, and the
Holder or any of its affiliates, on the other hand, shall terminate and be of no further force or effect. The Company understands
and confirms that the Holder will rely on the foregoing in effecting transactions in securities of the Company. The Company shall
not, and shall cause its Subsidiaries and its and each of their respective officers, directors, employees, affiliates and agents,
not to, provide the Holder with any material, nonpublic information regarding the Company or any of its Subsidiaries from and
after the date hereof without the express prior written consent of the Holder. To the extent that the Company, its Subsidiaries
or any of its or their respective officers, directors, employees, affiliates or agents delivers any material, non-public information
to the Holder without the Holder's prior written consent, the Company hereby covenants and agrees that the Holder shall not have
any duty of confidentiality to the Company, any of its Subsidiaries or any of their respective officers, directors, employees,
affiliates or agents with respect to, or a duty to the Company, any of its Subsidiaries or any of their respective officers, directors,
employees, affiliates or agents not to trade on the basis of, such material, non-public information.

 

7. Most Favored
Nation. The Company hereby represents and warrants as of the date hereof and covenants and agrees from and after the date hereof
for a period of at least 90 days from the date hereof that none of the terms offered to any Person relating to the amendment of
the Original Warrants (or any amendment, modification, waiver or release thereof) (each an "Amendment Document"),
is or will be more favorable to such Person than those of the Holder and this Agreement. If, and whenever on or after the date
hereof, the Company enters into an Amendment Document with terms that are materially different from this Agreement, then (i) the
Company shall provide written notice thereof to the Holder promptly following the occurrence thereof and (ii) the terms and
conditions of this Agreement shall be, without any further action by the Holder or the Company, automatically amended and modified
in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or
conditions (as the case may be) set forth in such Amendment Document, provided that upon written notice to the Company at any time
the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition
contained in this Agreement shall apply to the Holder as it was in effect immediately prior to such amendment or modification as
if such amendment or modification never occurred with respect to the Holder. The provisions of this paragraph shall apply similarly
and equally to each Amendment Document.

 

 

1
Insert the Trading Day immediately following the date of execution of this Agreement.

 

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8. Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Agreement shall be governed by, the laws of the State of New York, except for
its conflicts of law provisions.

 

9. Effectiveness
of Agreement; Prohibition on Certain Amendments to Merger Agreement. This Warrant Amendment will not become effective until
countersigned by the Holder and the Company and the Company will need the approval of Metuchen Pharmaceuticals LLC prior to such
execution. The Company hereby covenants and agrees that it will not, without the prior written consent of holders of a majority
of the Series H Warrants who have signed this Agreement or agreements substantially similar to this Agreement, allow any amendment
to the Original Merger Agreement or any waiver to the Original Merger Agreement that (i) causes the stockholders of the Company
to own less than 49% of the outstanding common stock of the combined company at the closing of the mergers contemplated by the
Merger Agreement, or (ii) results in such amended or waived Original Merger Agreement to be, or is reasonably expected to
be, more detrimental than the Original Merger Agreement to the holders of Series H Warrants that have signed this Agreement
or agreements substantially similar to this Agreement.

 

10. Counterparts.
This Agreement may be executed in the original or by facsimile in two or more counterparts, each of which shall be deemed an original
and all of which, taken together, shall constitute but one and the same instrument.

 

[Remainder of page intentionally
left blank.]

 

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IN WITNESS WHEREOF, the undersigned
have executed this Agreement as of the date first written above.

 

 

COMPANY:

 

 

NEUROTROPE, INC.

 

 

	By:	 	 
	Name:	 	 
	Title:	 	 
	 	 	 
	 	 	 
	WARRANT HOLDER:	 
	 	 	 
	[NAME OF WARRANT HOLDER]	 
	 	 
	 	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

Number of Original Warrants held:    

 

    6stcn20200731ex1043

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                                     EMPLOYMENT AGREEMENT                   This Employment Agreement (this “Agreement”) is dated June 4, 2020 (the “Effective            Date”), by and between IWCO Direct Holdings, Inc. (the “Company”), and John Ashe, an            individual (“Executive”).                   The Company currently employs Executive as Chief Executive Officer of the Company            and is desirous of continuing to employ Executive. Executive accepts such continued            employment by the Company on the terms and conditions set forth in this Agreement. In            consideration of the mutual covenants and agreements hereinafter set forth, the Company and            Executive hereby agree as follows:                   1.    Term.  The term of this Agreement and of the employment of Executive            hereunder shall commence as of the Effective Date and shall continue until terminated in            accordance with the terms of this Agreement. The term of the Executive’s employment under            this Agreement is hereafter referred to as “the term of this Agreement” or “the term hereof”.                   2.    Employment                   (a)   Employment; Title; Duties.  During the term of this Agreement, the Executive            shall serve as Chief Executive Officer of the Company, reporting to the Interim Chief Executive            Officer of Steel Connect, Inc. (“STCN”) or his successor. In such position, the Executive shall            have such duties, authority, and responsibilities as shall be determined from time to time, which            duties, authority, and responsibilities are consistent with the Executive’s position. The Executive            shall, if requested, also serve as an officer or director of any affiliate of the Company for no            additional compensation.                    (b)   Performance of Duties.  Throughout the term of his employment, Executive            shall devote his full business time exclusively to the advancement of the business and interests of            the Company and faithfully and diligently perform his duties in conformity with the lawful            direction of the Interim Chief Executive Officer of STCN, as well as the Board of Directors of            STCN (the “STCN Board”). Executive will not engage in any other business, profession, or            occupation for compensation or otherwise which would conflict or interfere with the            performance of such services either directly or indirectly without the prior written consent of the            Interim Chief Executive Officer and the STCN Board.                   (c)   Place of Performance.  Executive’s initial place of employment shall be at the            Company’s office in Chanhassen, MN; provided Executive shall be reasonably required to travel            periodically in connection with the performance of his duties.                   3.    Compensation and Benefits                   (a)   Base Salary.  During the term hereof, the Company shall pay to Executive a base            salary (“Base Salary”) at the annual rate of Four Hundred Thousand Dollars ($400,000).  The            Base Salary shall be payable in equal installments in accordance with the Company’s customary            pay schedule and shall be subject to such adjustments as the STCN Board shall determine from            time to time. The Company has currently implemented a thirty-five percent (35%) salary            reduction for salaried employees. According, Executive’s Base Salary shall be adjusted to the 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB             rate of $260,000 per year, less payroll deductions and all required withholdings (the “Interim            Base Salary”). Once the Company rescinds the 35% salary reduction, the Interim Base Salary            will be increased to the Base Salary.                     (b)   Annual Bonus.  Executive shall be eligible to receive an annual bonus in            accordance with the terms of any bonus plan applicable to the Executive. As of the Effective            Date, the Executive’s annual target bonus opportunity shall be equal to 100% of Base Salary            (comprised of 70% STIP and 30% LTIP) (the “Target Bonus”). Payment of the Target Bonus            shall be based on the achievement of the Executive’s performance goals established by the            STCN Compensation Committee in its sole and absolute discretion. The Executive’s actual            bonus may be higher or lower than the Target Bonus, as determined by the STCN Board of            Directors in its sole and absolute discretion. For the 2020 calendar year, Executive’s bonus will            be recommended to the Board of Directors taking into consideration the overall performance of            both Lucas-Milhaupt, Inc. and the Company. In addition, and for the avoidance of doubt, the            Company shall assume the obligation for payment of Executive’s previous cash LTIP awards,            which awards shall continue to vest and be paid per the approved terms of payment and payment            schedule.                   (c)   Sign-On Bonus. The Company will pay Executive a one-time bonus of $65,000,            less payroll deductions and all required withholdings (the “Sign-On Bonus”). The Company shall            pay Executive the Sign-On Bonus on the first payroll date after Executive relocates to the greater            Minneapolis area.                   (d)   Equity Grant. Within fifteen (15) days of execution of this Agreement,            Executive will be recommended to the Steel Connect, Inc. Compensation Committee to receive            400,000 shares of STCN stock, vesting fifty percent (50%) on the first anniversary of the grant            date and fifty percent (50%) on the second anniversary of the grant date.                   (e)   Vacation.  During the term hereof, Executive shall be entitled to accrue four (4)            weeks of vacation per annum, to be taken at such times and intervals as shall be determined by            Executive, subject to the reasonable business needs of the Company. Executive may not            accumulate or carry over from one (1) calendar year to another any unused, accrued vacation            time. Executive shall not be entitled to compensation for vacation time not taken. For the            avoidance of doubt, Executive acknowledges and agrees that Executive will not be paid for            accrued and unused vacation days upon the termination of his employment with Lucas-Milhaupt,            Inc. Instead, any accrued but unused vacation will be transferred from Lucas-Milhaupt, Inc. to            the Company for use in 2020. For the avoidance of doubt, Executive will not be entitled to more            than 20 vacation days in 2020.                    (f)   Expenses.  Subject to such policies as may be established, the Company shall pay            or reimburse Executive for all reasonable expenses actually incurred or paid by Executive in the            performance of Executive’s duties under this Agreement, upon presentation of expense            statements or vouchers or such other supporting information as the Company may reasonably            require.                   (g)   Withholdings.  The Company is authorized to deduct and withhold all payroll,            income and other taxes or similar amounts from the Base Salary, bonuses and other            compensation as required by law.                                                  -2- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                   4.    Benefits.                     (a)   Health and Other Benefits Executive shall be eligible to participate in all            employee benefit plans including, but not limited to: bonus; retirement; medical, dental, life and            other insurance; vacation; sick leave; holiday; and other benefit plans that are provided by the            Company to its senior management personnel, in accordance with their terms as in effect from            time to time. The Company reserves the right to amend or cancel any employee benefit plans at            any time in its sole discretion, subject to the terms of such employee benefit plan and applicable            law.                   (b)   Automobile Allowance. Executive will receive a monthly $1,000 car allowance,            subject to applicable tax law regarding reporting and withholding.                   (c)   Relocation Assistance. The Company will reimburse Executive for Executive and            Executive’s family’s relocation to the greater Minneapolis area pursuant to the Cornerstone            Relocation Policy. In addition, the Company will reimburse Executive for the rental cost of a            four (4) bedroom furnished apartment in the greater Minneapolis area through August 31, 2020.            In addition, upon Executive’s request, the Company will provide Executive with an interest-free            bridge loan in an amount not to exceed $200,000 (the “Bridge Loan”). The purpose of the Bridge            Loan will be to assist Executive in purchasing a new residence in the greater Minneapolis area in            the event there are delays in selling Executive’s current residence in Wisconsin. Executive will            be obligated to execute a promissory note as a condition to receiving the Bridge Loan and            Executive will be obligated to re-pay the Bridge Loan in full within twenty-four (24) months of            the date Executive receives the Bridge Loan (whether or not Executive sells his Wisconsin            residence). All reimbursements will be made subject to applicable tax law regarding reporting            and withholding, as well as reasonable documentation as requested by the Company.                   5.    Severance and other Payments upon Termination of Employment                   (a)   Termination Without Cause. If the Company terminates Executive’s            employment without Cause (as defined below), then the Company will pay Executive a            severance benefit equal to twelve (12) months of full Base Salary at the Executive’s highest rate            in effect in the twelve (12) months preceding the termination of employment (the “Severance            Payment”). In addition, if Executive timely and properly elects continuation coverage under the            Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”), the Company shall reimburse            Executive for the monthly COBRA premium paid by Executive for himself and his dependents            (the “Medical Benefits”). Any such reimbursement for any month (or portion thereof) on or after            the effective date of the general release shall be paid to Executive on the sixtieth (60th) day            following the date on which Executive timely remits the premium payment and proof of payment            to the Company. Executive shall be eligible to receive such reimbursement until the earliest of (i)            twelve months from the effective date of the general release, (ii) the date Executive is no longer            eligible to receive COBRA continuation coverage; and (iii) the date on which Executive            becomes eligible to receive comparable group health coverage from another employer (as            determined by the Company in its sole discretion). Any such reimbursed COBRA premiums            shall be subject to all applicable income and employment tax withholdings and other required            deductions. Notwithstanding the foregoing, if the Company’s reimbursements under this            paragraph would violate any applicable rules or regulations, the parties agree to reform this            paragraph in a manner as is necessary to comply with applicable rules or regulations. All rights            and benefits provided to you under this Section 5(a) shall expire on May 15, 2022.                                                 -3- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                   (b)   Termination Without Cause (Change of Control). In the event the Company is            sold and Executive’s employment is terminated without Cause as part of the change of control of            the Company, and provided Executive executes and does not revoke a general release of the            Company in a form satisfactory to the Company, then the Company will pay Executive a            severance benefit equal to twelve (12) months of full Base Salary at the Executive’s highest rate            in effect in the twelve (12) months preceding the termination of employment (the “Severance            Payment”). In addition, if Executive timely and properly elects continuation coverage under the            Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”), the Company shall reimburse            Executive for the monthly COBRA premium paid by Executive for himself and his dependents            (the “Medical Benefits”). Any such reimbursement for any month (or portion thereof) on or after            the effective date of the general release shall be paid to Executive on the sixtieth (60th) day            following the date on which Executive timely remits the premium payment and proof of payment            to the Company. Executive shall be eligible to receive such reimbursement until the earliest of (i)            twelve months from the effective date of the general release, (ii) the date Executive is no longer            eligible to receive COBRA continuation coverage; and (iii) the date on which Executive            becomes eligible to receive comparable group health coverage from another employer (as            determined by the Company in its sole discretion). Any such reimbursed COBRA premiums            shall be subject to all applicable income and employment tax withholdings and other required            deductions. Notwithstanding the foregoing, if the Company’s reimbursements under this            paragraph would violate any applicable rules or regulations, the parties agree to reform this            paragraph in a manner as is necessary to comply with applicable rules or regulations.                    (c)   Termination for Cause or Executive Resigns. If the Company terminates            Executive’s employment for Cause, or if Executive terminates his employment, then Executive            shall receive his Base Salary and accrued vacation pay earned but unpaid through the date of            termination. All payments hereunder are subject to all applicable income and employment tax            withholdings and other required deductions. Executive shall not be entitled to receive the            Severance Payment, Medical Benefit, or any other payment or benefit.                   (d)   Death.  If Executive’s employment is terminated because of Executive’s death,            then his estate shall be entitled to receive any Base Salary and accrued vacation pay that            Executive has earned on and through the date of such termination. All payments hereunder are            subject to all applicable income and employment tax withholdings and other required deductions.                   (e)   General Release.  Prior to, and as a precondition to Executive’s receipt of the            Severance Payment and Medical Benefit under Section 5(a) or Section 5(b), Executive shall            execute (and not revoke) a general release of STCN, the Company, and their Affiliates,            subsidiaries, and their officers, directors, employees, agents, successors and assigns substantially            in the form that is attached to this Agreement at Exhibit A such that it becomes effective within            sixty (60) days following termination of his employment with  the Company.                   (f)   Resignation.  Prior to, and as a precondition to Executive’s receipt of the            Severance Payment and Medical Benefit under Section 5(a) or Section 5(b), Executive agrees to            resign from all positions that the Executive holds as an officer or member of the Board (or a            committee thereof) of STCN, the Company or any of their Affiliates.                                                                            -4- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                   6.    Restrictive Covenants.                     (a)   Confidential Information. Executive understands and acknowledges that during            the course of employment by the Employer Group, Executive had, has and will have access to,            and learn about, Confidential Information. For purposes of this Agreement, “Confidential            Information” includes, but is not limited to, all information not generally known to the public, in            spoken, printed, electronic or any other form or medium, relating directly or indirectly to:            business processes, practices, methods, policies, plans, publications, documents, research,            operations, services, strategies, techniques, agreements, contracts, terms of agreements,            transactions, potential transactions, negotiations, pending negotiations, know-how, trade secrets,            computer programs, computer software, applications, software design, work-in-process,            databases, manuals, records, articles, systems, material, sources of material, supplier information,            vendor information, financial information, results, accounting information, accounting records,            legal information, marketing information, advertising information, pricing information, credit            information, design information, payroll information, staffing information, personnel            information, employee lists, supplier lists, vendor lists, developments, reports, internal controls,            security procedures, graphics, drawings, sketches, market studies, sales information, revenue,            costs, formulae, notes, communications, algorithms, product plans, designs, models, ideas,            inventions, unpublished patent applications, original works of authorship, discoveries,            experimental processes, experimental results, specifications, customer information, customer            lists, client information, client lists, manufacturing information, distributor lists, and buyer lists            of the Employer Group or its businesses or any existing or prospective customer, supplier,            investor, or other associated third party, or of any other person or entity that has entrusted            information to the Employer in confidence.                          Executive understands that the above list is not exhaustive, and that Confidential            Information also includes other information that is marked or otherwise identified or treated as            confidential or proprietary, or that would otherwise appear to a reasonable person to be            confidential or proprietary in the context and circumstances in which the information is known or            used. Executive understands and agrees that Confidential Information includes information            developed by Executive in the course of the Executive’s employment by the Employer Group as            if the Employer Group furnished the same Confidential Information to Executive in the first            instance. Confidential Information shall not include information that is generally available to and            known by the public at the time of disclosure to Executive, provided that the disclosure is            through no direct or indirect fault of Executive or person(s) acting on Executive’s behalf.                         Executive understands and acknowledges that the Employer Group has invested,            and continues to invest, substantial time, money, and specialized knowledge into developing its            resources, creating a customer base, generating customer and potential customer lists, training its            employees, and improving its offerings in the field of direct mail, data-driven marketing and            critical communication recovery. Executive understands and acknowledges that as a result of            these efforts, Employer Group has created, and continues to use and create Confidential            Information. This Confidential Information provides Employer Group with a competitive            advantage over others in the marketplace.                          Executive agrees and covenants: (i) to treat all Confidential Information as strictly            confidential; (ii) not to directly or indirectly disclose, publish, communicate, or make available            Confidential Information, or allow it to be disclosed, published, communicated, or made            available, in whole or part, to any entity or person whatsoever (including other employees of the                                                 -5- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB             Employer Group) not having a need to know and authority to know and use the Confidential            Information in connection with the business of the Employer Group and, in any event, not to            anyone outside of the direct employ of the Employer Group except as required in the            performance of the Executive’s authorized employment duties to the Employer Group or with            the prior consent of the Interim Chief Executive Officer of STCN in each instance (and then,            such disclosure shall be made only within the limits and to the extent of such duties or consent);            and (iii) not to access or use any Confidential Information, and not to copy any documents,            records, files, media, or other resources containing any Confidential Information, or remove any            such documents, records, files, media, or other resources from the premises or control of the            Employer Group, except as required in the performance of the Executive’s authorized            employment duties to the Employer Group or with the prior consent of the Interim Chief            Executive Officer of STCN in each instance (and then, such disclosure shall be made only within            the limits and to the extent of such duties or consent).                         Executive understands and acknowledges that Executive’s obligations under this            Agreement regarding any particular Confidential Information begins immediately when the            Executive first has access to the Confidential Information (whether before or after Executive            began employment with the Employer Group) and shall continue during and after Executive’s            employment by the Employer Group until the time that the Confidential Information has become            public knowledge other than as a result of Executive’s breach of this Agreement or breach by            those acting in concert with Executive or on Executive’s behalf.                         Notwithstanding any other provision of this Agreement, Executive will not be            held criminally or civilly liable under any federal or state trade secret law for any disclosure of a            trade secret that is: (i) made in confidence to a federal, state, or local government official, either            directly or indirectly; (ii) made in confidence to an attorney and solely for the purpose of            reporting or investigating a suspected violation of law; or (iii) made in a complaint or other            document that is filed under seal in a lawsuit or other proceeding. If Executive files a lawsuit for            retaliation by the Company for reporting a suspected violation of law, Executive may disclose            the Company’s trade secrets to the Executive’s attorney and use the trade secret information in            the court proceeding if Executive files any document containing the trade secret under seal and             does not disclose the trade secret, except pursuant to court order. Nothing in this Agreement shall            be construed to prevent disclosure of Confidential Information as may be required by applicable            law or regulation, or pursuant to the valid order of a court of competent jurisdiction or an            authorized government agency, provided that the disclosure does not exceed the extent of            disclosure required by such law, regulation, or order.                         Executive understands that the nature of Executive’s position gives Executive            access to, and knowledge of, Confidential Information and places Executive in a position of trust            and confidence with the Employer Group. Executive understands and acknowledges that the            services Executive provides to the Employer Group are unique, special, or extraordinary.            Executive further understands and acknowledges that the Employer Group’s ability to reserve            these for the exclusive knowledge and use of the Employer Group is of great competitive            importance and commercial value to the Employer Group, and that improper use or disclosure by            the Executive is likely to result in unfair or unlawful competitive activity.                   (b)   Non-Competition. Because of Employer Group’s legitimate business interest as            described in this Agreement and the good and valuable consideration offered to Executive, the            receipt and sufficiency of which is acknowledged, during the term of Executive’s employment                                                 -6- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB             and for the twelve (12) months, to run consecutively, beginning on the last day of the            Executive’s employment with the Company, whether terminated for any reason or no reason, by            the Executive or the Company, (the “Restricted Period”), Executive agrees and covenants not to            engage in Prohibited Activity within North America (the “Restricted Territory”). For purposes of            this non-compete clause, “Prohibited Activity” is activity in which Executive contributes his            knowledge, directly or indirectly, in whole or in part, as an employee, employer, owner,            operator, manager, advisor, consultant, contractor, agent, partner, director, stockholder, officer,            volunteer, intern, or any other similar capacity to an entity engaged in the same or similar            business as the businesses of the companies in the Employer Group, including those engaged in            the business of direct mail, data-driven marketing, and critical communication recovery within            the Restricted Territory. Prohibited Activity also includes activity that may require or inevitably            require disclosure of trade secrets, proprietary information, or Confidential Information. Nothing            in this agreement shall prohibit Executive from purchasing or owning less than five percent (5%)            of the publicly traded securities of any corporation, provided that such ownership represents a            passive investment and that Executive is not a controlling person of, or a member of a group that            controls, such corporation. This Section does not, in any way, restrict or impede Executive from            exercising protected rights to the extent that such rights cannot be waived by agreement or from            complying with any applicable law or regulation or a valid order of a court of competent            jurisdiction or an authorized government agency, provided that such compliance does not exceed            that required by the law, regulation, or order.                   (c)   Non-Solicitation of Employees. Executive understands and acknowledges that            the Employer Group has expended and continues to expend significant time and expense in            recruiting and training its employees and that the loss of employees would cause significant and            irreparable harm to the Employer Group. Executive agrees and covenants not to directly or            indirectly solicit, hire, recruit, or attempt to solicit, hire, or recruit, any employee of the            Employer Group or any employee who has been employed by the Employer Group in the twelve            months preceding the last day of Executive’s employment with the Company (collectively,            “Covered Employee”), or induce the termination of employment of any Covered Employee for a            period of twelve months, beginning on the last day of Executive’s employment with the            Company, regardless of the reason for the employment termination during the Restricted Period.            This non-solicitation provision explicitly covers all forms of oral, written, or electronic            communication, including, but not limited to, communications by email, regular mail, express            mail, telephone, fax, instant message, and social media, including, but not limited to, Facebook,            LinkedIn, Instagram, Twitter, and any other social media platform, whether or not in existence at            the time of entering into this Agreement.                    (d)   Non-Solicitation of Customers. Executive understands and acknowledges that            because of Executive’s experience with and relationship to the Employer Group, Executive has            had and will continue to have access to and has learned and will continue to learn about much or            all of the Employer Group’s customer information, including, but not limited to, Confidential            Information. Executive understands and acknowledges that: (i) the Employer Group’s            relationships with its customers is of great competitive value; (ii) the Employer Group has            invested and continues to invest substantial resources in developing and preserving its customer            relationships and goodwill; and (iii) the loss of any such customer relationship or goodwill will            cause significant and irreparable harm to the Employer Group. Executive agrees and covenants,            for a period of twelve months, beginning on the last day of Executive’s employment with the            Company, whether terminated for any reason or no reason, by Executive or the Company, not to                                                  -7- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB             directly or indirectly solicit, contact, or attempt to solicit or contact, using any other form of oral,            written, or electronic communication, including, but not limited to, email, regular mail, express            mail, telephone, fax, or instant message, or social media, including but not limited to Facebook,            LinkedIn, Instagram or Twitter, or any other social media platform, whether or not in existence            at the time of entering into this agreement, or meet with the Employer Group’s current, former,            or prospective customers for purposes of offering or accepting goods or services similar to or            competitive with those offered by the Employer Group.                    7.    Ownership.  Executive acknowledges that all developments, including, without            limitation, inventions, patentable or otherwise, formulas, discoveries, improvements, patents,            trade secrets, designs, works, reports, computer software, flow charts and diagrams, procedures,            data, documentation and writings and applications thereof relating to the past, present or future            business of the Company that, alone or jointly with others, Executive may have discovered,            conceived, created, made, developed, reduced to practice or acquired, from the inception of the            Company to the present, or may, from the date of this Agreement through the termination of his            employment with the Company, discover, conceive, create, make, develop, reduce to practice or            acquire in the course of his employment with the Steel Partners Group (collectively, the            “Developments”) are works made for hire and shall remain the sole and exclusive property of the            respective legal entity within the Steel Partners Group and Executive hereby assigns to the            Company all of his right, title and interest in and to all such Developments.  Executive agrees to            promptly and fully disclose all future Developments to the Company and, at any time upon            request and at the expense of the Company, execute, acknowledge and deliver to the Company            all instruments that the Company shall prepare, give evidence, and take all other actions that are            necessary or desirable in the reasonable opinion of the Company to enable the Company to file            and prosecute applications for and to acquire, maintain and enforce all letters patent, trademark            registrations or copyrights covering the Developments in all countries in which the same are            deemed necessary by the Company. All memoranda, notes, lists, drawings, records, files,            computer tapes, programs, software, source and programming narratives and other            documentation (and all copies thereof) made or compiled by Executive or made available to            Executive concerning the Developments or otherwise concerning the past, present or planned            business of the Steel Partners Group shall be the property of the respective legal entity within the            Steel Partners Group and shall be delivered to the Company promptly upon the termination of            Executive’s employment with the Company.                     8.    Assignability.  This Agreement shall be binding upon and inure to the benefit of            the parties and their respective successors, heirs (in the case of Executive), and permitted            assigns. No rights or obligations of the Company under this Agreement may be assigned or            transferred by the Company, except that such rights or obligations may be assigned or            transferred: (a) to an Affiliate of the Company or (b) pursuant to a merger or consolidation in            which the Company is not the continuing or surviving entity, or the sale or liquidation of all or            substantially all of the assets of the Company, to one or more entities that have the financial and            other ability to perform the Company’s obligations under this Agreement; provided, however,            that the assignee or transferee is the successor to all or substantially all of the assets of the            Company and such assignee or transferee assumes the liabilities, obligations and duties of the            Company under this Agreement, either contractually or as a matter of law. No rights or            obligations of Executive under this Agreement may be assigned or transferred by Executive            other than his rights to compensation and benefits which, to the extent permitted under            applicable laws, shall be assignable by written notice to the Company of such assignment.                                                  -8- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                   9.    Entire Agreement.  This Agreement contains the entire understanding and            agreement between the parties concerning the subject matter hereof and supersedes all prior            agreements, understandings, discussions, negotiations and undertakings, whether written or oral,            between the parties with respect thereto.                    10.   Amendment or Waiver.  No provision in this Agreement may be amended            unless such amendment is agreed to in writing and signed by Executive and an authorized officer            of the Company (other than Executive). No waiver by either party of any breach by the other            party of any condition or provision contained in this Agreement to be performed by such other            party shall be deemed a waiver of a similar or dissimilar condition or provision at the same or            any prior or subsequent time. Any such waiver must be in writing and signed by the party            granting the waiver, Executive or an officer of the Company (other than Executive), as the case            may be.                   11.   Severability.  If any provision or portion of this Agreement shall be determined            to be invalid or unenforceable for any reason, in whole or in part, the remaining provisions of            this Agreement shall be unaffected thereby and shall remain in full force and effect to the fullest            extent permitted by law. In the event that the restrictive covenants contained in Section 6 of this            Agreement shall be found by a court of competent jurisdiction to be unreasonable by reason of            such restrictive covenants extending for too great a period of time or over too great a geographic            area or by reason of such restrictive covenants being too extensive in any other respect, then such            restrictive covenant shall be deemed modified to the minimum extent necessary to make such            restrictive covenant reasonable and enforceable under the circumstances.                   12.   Governing Law and Venue.  This Agreement shall be governed by and            interpreted in accordance with the laws of the State of New York, excluding the provisions            relating to conflicts of law.  Any dispute between the parties shall be heard in the state or federal            courts located in the State of New York, and each party hereby submits to the exclusive            jurisdiction of such courts for such disputes and agrees not to argue that such courts are not an            inconvenient forum for such dispute.                    13.   Notices.  Any notice given to a party shall be in writing and shall be deemed to            have been given when delivered personally or by courier, or upon receipt if sent by certified or            registered mail, postage prepaid, return receipt requested, duly addressed to the party concerned            at the address indicated below or to such changed address as such party may subsequently give            such notice of:                   If to the Company:                   IWCO Direct                  7951 Powers Blvd                  Chanhassen, MN  55317                                                       If to Executive:                                                      John Ashe                  W297 N3341 Woodridge Circle                  Pewaukee, WI  53072                                                  -9- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                                     14.   Section 409A Compliance.  Executive is solely responsible and liable for the            satisfaction of any federal, state, province or local taxes that may arise with respect to this            Agreement (including any taxes arising under Section 409A of the Code). Notwithstanding            anything in this Agreement to the contrary, if any amounts that become due under this            Agreement on account of Executive’s termination of employment constitute “nonqualified            deferred compensation” within the meaning of Section 409A of the Code, payment of such            amounts shall not commence until Executive incurs a “separation from service” within the            meaning of Treasury Regulation § 1.409A-1(h) and, for purposes of any such provision of this            Agreement, references to a “termination,” “termination of employment” or like terms shall mean            “separation from service”. If, at the time of Executive’s termination of employment under this            Agreement, Executive is a “specified employee” (under Section 409A of the Code), any            payments that constitute “nonqualified deferred compensation” within the meaning of Section            409A of the Code on account of Executive’s “separation from service” and that are not exempt            from Section 409A of the Code shall not be paid until after the end of the sixth calendar month            beginning after Executive’s separation from service (the “409A Suspension Period”). Within            fourteen (14) calendar days after the end of the 409A Suspension Period, Executive shall be paid            a lump sum payment in cash equal to any payments delayed because of the preceding sentence.             Each amount to be paid or benefit to be provided under this Agreement shall be construed as a            separate identified payment for purposes of Section 409A.                   15.   Headings.  The headings of the sections contained in this Agreement are for            convenience only and shall not be deemed to control or affect the meaning or construction of any            provision of this Agreement.                   16.   Counterparts.  This Agreement may be executed in counterparts, and such            counterparts shall be considered as part of one agreement. A signed copy of this Agreement            delivered by facsimile, e-mail or other means of electronic transmission is deemed to have the            same legal effect as delivery of an original signed copy of this Agreement.                   17.   Definitions.  For purposes of this Agreement, the following terms shall be defined            as follows:                         “Affiliate” of a Person shall mean any other Person that directly or indirectly,            through one or more intermediaries, controls, is controlled by, or is under common control with,            such Person. The term “control” (including the terms “controlled by” or “under common control            with”) means the possession, directly or indirectly, of the power to direct or cause the direction            of the management and policies of a Person, whether through the ownership of voting securities,            by contract, or otherwise.                             “Cause” shall means: (i) Executive engaging in knowing and intentional illegal            conduct that was or is materially injurious to the Company or its Affiliates; (ii) Executive            violating a federal or state law or regulation applicable to the Company’s business which            violation was or is reasonably likely to be injurious to the Company; (iii) Executive materially            breaching the terms of any confidentiality agreement or invention assignment agreement            between Executive and the Company; or (iv) Executive being convicted of, or entering a plea of            nolo contendere, to a felony or committing any act of moral turpitude, dishonesty or fraud            against, or the misappropriation of material property belonging to, the Company or its Affiliates.                                                  -10- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                         “Person” shall mean an individual, corporation, partnership, joint venture, limited            liability company, governmental authority, unincorporated organization, trust, association or            other entity.                         “Employer Group” shall mean OMG, Inc. Lucas-Milhaupt, Inc., IWCO Direct            Holdings, Inc., and each of their direct and indirect subsidiaries.                                                                                        -11- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB             The undersigned have executed this Agreement to be effective on the Effective Date.             IWCO Direct Holdings, Inc.              By:                                                               Title: Chief Financial Officer                                     EXECUTIVE                                            6/27/2020              John Ashe                                                   -12- 

 

DocuSign Envelope ID: 7B98027D-A144-4605-A2B9-5A06556ABC65BC9CF432-805B-458D-9077-5425864D90BB                                                                             Exhibit A                                                                        General Release                                                                                                                                                [attach form of General Release]                                                                                  -13-

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