Document:

Exhibit 10.1

		

			Exhibit 10.1

		

		

			 

		

		
			SEPARATION AGREEMENT
AND GENERAL RELEASE
		

		
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			THIS SEPARATION AGREEMENT AND GENERAL RELEASE ("Agreement") is between Veru Inc. ("Company") and Charles T. Todd, Jr. ("Employee").
		

		
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			RECITALS
		

		
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			The Company and Employee desire to effect a final resolution and settlement of all matters and issues relating directly or indirectly to Employee's employment with the Company and Employee's March 27, 2019 resignation from that employment (the "Resignation Date”), and have arrived at a compromise of all such matters in this Agreement.
		

		
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			AGREEMENTS
		

		
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				 1.
			Acknowledgment of Full Compensation.  Employee acknowledges and agrees that, with the payment on March 29, 2019 by the Company to Employee of $11,995.83, gross, less ordinary tax withholding and all required deductions, and the payment on April 15, 2019 by the Company to Employee of $2,796.66, gross, less ordinary tax withholding and all required deductions, Employee has received from the Company all salary, fringe benefits (including without limitation by enumeration vacation pay, bonuses, and retirement plan contributions) and all other compensation and benefits owed by the Company to Employee through and including the Resignation Date, except for the reimbursement for outstanding business-related expenses Employee incurred on behalf of the Company, which shall be handled and reimbursed in accordance with the Company’s expense reimbursement practices. 

		
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				 2.
			Consideration.  Conditioned upon (i) Employee's signing of this Agreement and Employee's return of this Agreement to the Company, (ii) expiration of the seven day revocation period without revocation, (iii) Employee's properly executing and returning the attached acknowledgment form to the Company (Exhibit A) indicating Employee's decision not to revoke this Agreement and (iv) Employee’s compliance with Employee’s obligations under this Agreement, the Company shall:

		
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				 (a)
			pay Employee a total gross separation payment of $143,950.00, less ordinary tax withholding and all required deductions, an amount representing the approximate equivalent of six (6) months’ base salary, which shall be paid in twenty-four substantially equal installments.  The first installment payment shall be made payable on the Company’s next regularly scheduled payroll date following Employee's satisfaction of the above conditions and subsequent installments shall continue to be made on each of the next 23 regularly scheduled payroll dates;

		
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				 (b)
			not contest any claim for unemployment insurance benefits filed by Employee after the Resignation Date; provided, however, that nothing in this Agreement shall prohibit the Company from responding truthfully to any inquiries from the unemployment insurance division of the pertinent state unemployment insurance agency.  Employee acknowledges and agrees that it is the parties' intent that Employee shall not be eligible for unemployment insurance benefits during the twelve (12) month period following Employee's satisfaction of the conditions specified in this paragraph 2 because Employee will be receiving separation pay allocated to that 
		

		 

 

			period of time.  The Company reserves the right to challenge any application seeking benefits for any portion of the aforementioned twelve (12) month period; and

		
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				 (c)
			permit (i) the part of the non-qualified stock option to purchase 280,000 shares of common stock issued to Employee on March 20, 2018 (the "March 2018 Stock Option") under the Company's 2017 Equity Incentive Plan that vested on March 20, 2019 (93,333 shares) to be exercised in accordance with the terms of the Company's 2017 Equity Incentive Plan and the applicable stock option grant agreement through March 20, 2020, (ii) the part of the March 2018 Stock Option that is scheduled to vest on March 20, 2020 (93,333 shares) to vest on such vesting date conditioned on Employee being available to provide transition consulting assistance pursuant to paragraph 17 of this Agreement through such vesting date and permit such part of such stock option, if it so vests, to be exercised in accordance with the terms of the Company's 2017 Equity Incentive Plan and the applicable stock option grant agreement through March 20, 2021, and (iii) the part of the non-qualified stock option to purchase 42,226 shares of common stock issued to Employee on January 2, 2019 (the "January 2019 Stock Option") under the Company's 2018 Equity Incentive Plan that is scheduled to vest on January 2, 2020 (42,226 shares) to vest on such vesting date conditioned on Employee being available to provide transition consulting assistance pursuant to paragraph 17 of this Agreement through such vesting date and permit such part of such stock option, if it so vests, to be exercised in accordance with the terms of the Company's 2018 Equity Incentive Plan and the applicable stock option grant agreement through January 2, 2021.  Employee acknowledges and agrees that all other stock options issued to Employee under the Company's 2017 Equity Incentive Plan or the Company’s 2018 Equity Incentive Plan, including the remainder of the March 2018 Stock Option that is scheduled to vest and March 20, 2021 (93,334 shares total) are unvested, shall terminate as of the Resignation Date and may not be exercised.  

		
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			The consideration specified in paragraph 2(a) shall be subject to ordinary tax withholding and all required deductions.  The consideration specified in this paragraph 2  shall not be deemed "compensation" for purposes of any of the Company's qualified retirement plans or other benefit programs, and payment of this separation pay does not entitle Employee to any retirement plan contributions by the Company for Employee's benefit or account.  This consideration is not an amount to which Employee is otherwise entitled, and constitutes additional consideration for Employee's release and waiver of potential claims identified in paragraph 5 below, including without limitation a potential claim for age discrimination under the Age Discrimination in Employment Act, and for the promises contained in paragraphs 13 and 17.
		

		
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				 3.
			Confidentiality and Non-Disclosure.  Employee agrees that this Agreement, and its terms and provisions, are strictly confidential and shall not be divulged or disclosed in any way to any person other than Employee's spouse, legal counsel, or tax advisor.  Should Employee choose to divulge the terms and conditions of this Agreement to Employee's spouse, legal counsel, or tax advisor, Employee shall ensure that they will be similarly bound to keep the same confidential.  A breach of this paragraph by Employee's spouse, legal counsel, or tax advisor shall be considered a breach of this paragraph by Employee.

		
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				 4.
			Non-Admission of Liability.  Neither this Agreement nor any action taken by the Company or Employee pursuant to it shall in any way be construed as an admission by the Company or Employee of any liability, wrongdoing, or violation of law, regulation, contract or 
		

		 

		

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			policy regarding any of the Company's or Employee’s decisions and actions regarding the employment or separation from employment of Employee.

		
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				 5.
			Release.  For valuable consideration from the Company as stated above, Employee, for Employee and Employee's heirs, personal representatives, successors and assigns, hereby releases all claims of whatever nature that Employee may have against the Company, its affiliates, subsidiaries, predecessors, successors and assigns and its and their present, former or later insurers, agents, representatives, officers, administrators, directors, shareholders and employees (collectively "Releasees"), which arise out of or are in any manner based upon or related to the employment relationship between Employee and the Company, and the end of that relationship, and from all other claims or liabilities of any nature whatsoever which have arisen from any occurrence, transaction, omission or communication which transpired or occurred at any time before or on the date of this Agreement; provided, however, that this Agreement will not affect any existing obligations that the Company may have to indemnify Employee and will not prevent any party from asserting a claim against the other party for breach of this Agreement.

		
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			Without limitation to the foregoing, Employee specifically releases, waives and forever discharges the Releasees from and against all liabilities, claims, actions, demands, damages and costs of every nature, whether known or unknown, asserted or unasserted, which arise under the New Hampshire Protective Legislation Law; New Hampshire Unemployment Compensation Law; New Hampshire Uniform Trade Secrets Act; New Hampshire Whistleblowers' Protection Act; New Hampshire Minimum Wage Act; New Hampshire Public Employee Labor Relations Act; New Hampshire Safety and Health of Employees Law; New Hampshire Law Against Discrimination; Florida Civil Rights Act; Florida Whistleblower Protection Act; Florida Workers' Compensation Retaliation provision, Florida Minimum Wage Act; Article X, Section 24 of the Florida Constitution; Title VII of the Civil Rights Act of 1964, as amended; the Genetic Information Nondiscrimination Act; the Age Discrimination in Employment Act (29 U.S.C. § 621 et seq.); the Americans With Disabilities Act, as amended; Section 1981 of U.S.C. Title 42; National Labor Relations Act; Employee Retirement Income Security Act of 1974; the Equal Pay Act; state or federal parental, family and medical leave acts; the Uniformed Services Employment and Reemployment Rights Act (USERRA), or any other local, state, or federal military and/or veterans rights act, or any other claim based on veteran status; or arising under any other local, state or federal statute, ordinance, regulation or order, or which involve a claim or action for wrongful discharge, breach of contract (express or implied) and/or any other tort or common law cause of action.  
		

		
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				 6.
			No Limitation of Rights.  The waiver and release in paragraph 5 does not affect those rights or claims that arise after the execution of this Agreement.  Nor does the waiver and release affect those rights or claims that cannot be waived by law.  While nothing contained in this Agreement shall be interpreted to prevent the United States Equal Employment Opportunity Commission ("EEOC") or equivalent state or local agency, the United States Securities and Exchange Commission ("SEC"), the National Labor Relations Board ("NLRB"), the Occupational Safety and Health Administration ("OSHA"), or any other federal, state or local agency or commission from investigating and pursuing any matter which it deems appropriate, Employee understands and agrees that, by signing this Agreement, Employee is waiving any and all rights Employee may have to reinstatement, damages, remedies, costs, attorney's fees or other relief as to any claims Employee has released and any rights Employee has waived as a result of Employee's execution of this Agreement.  Nothing contained in this Agreement is intended to limit Employee's 
		

		 

		

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			right or ability to file a charge with the EEOC or equivalent state or local agency, SEC, NLRB, OSHA, or any other federal, state or local agency or commission, or to receive an award for providing information to these agencies.  The EEOC or equivalent state or local agency, SEC, NLRB, OSHA, and any other federal, state or local agency or commission have  the authority to carry out their statutory duties by investigating the charge, issuing a determination, filing a lawsuit in court in their own name, or taking any other action authorized under law.  Employee retains the right to testify, assist or participate in any such action.  Employee retains the right to communicate with the EEOC or equivalent state or local agency, SEC, NLRB, OSHA, or any other federal, state or local agency or commission and such communication can be initiated by Employee or in response to the government and is not limited by the confidentiality or non-disparagement obligations contained in paragraphs 3, 11, 12, 22 and 27 of this Agreement.

		
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				 7.
			No Reinstatement, Reemployment or Rehire.  Employee expressly declines reinstatement, reemployment or rehire by the Company and waives all rights to claim such relief.  If Employee should apply for employment with the Company or with any of its related entities in the future, Employee agrees that Employee has no entitlement to such employment and may be denied employment on the basis of this Agreement.

		
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				 8.
			No Representations as Employee.  After the Resignation Date, Employee agrees that Employee will not represent Employee as being a current employee, officer, attorney, agent or representative of Company for any purpose.  Within five business days of the Resignation Date, Employee specifically agrees to update any and all social media accounts the Employee accesses, uses or maintains to remove any reference to Employee being a current employee of the Company.  For purposes of this paragraph 8, social media accounts include, without limitation, Facebook, LinkedIn and Twitter.

		
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				 9.
			No Pending Matters.  Employee warrants and represents that Employee has not filed any pending complaint, charge, claim or grievance concerning Employee's compensation, separation from employment or terms and conditions of employment against the Company with any local, state or federal agency, court or commission, and that if any agency, commission or court assumes jurisdiction of any such complaint or charge on behalf of Employee, Employee will immediately request that agency, commission, or court to dismiss such proceeding with prejudice.

		
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				 10.
			No Injuries.  Employee acknowledges and agrees that Employee has reported to Company management any and all workplace injuries (if any) sustained by Employee during Employee's employment with the Company and that Employee is not aware of any facts that would give rise to a worker's compensation claim that has not already been properly reported.  

		
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				 11.
			Non-Disparagement.  Employee agrees to maintain a positive and constructive attitude and demeanor towards the Company, its directors, officers, shareholders, employees and agents, and agrees to refrain from making derogatory comments or statements of a negative nature about the Company, its directors, officers, shareholders, employees and agents, to anyone, including, but not limited to, current and former Company customers, employees, suppliers, vendors, and referral sources.  Nothing contained in this paragraph shall be construed to prohibit Employee from providing truthful testimony in any administrative, state or federal proceeding or cooperating in an investigation conducted by the EEOC or equivalent state or local agency, SEC, NLRB, OSHA, or any other federal, state or local agency or commission.  The Company agrees to 
		

		 

		

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			cause its officers to maintain a positive and constructive attitude and demeanor towards Employee and to refrain from making derogatory comments or statements of a negative nature about Employee.

		
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				 12.
			Restrictive Covenant Obligations.  Employee reaffirms that Employee will abide by the confidentiality obligations in Section 7 of the Executive Employment Agreement between the parties dated as of January 2, 2019 (the "Employment Agreement"); the non-competition, non-solicitation and non-interference obligations in Section 8 of the Employment Agreement; the intellectual property obligations in Section 13 of the Employment Agreement; and the security and exit obligations in Section 14 of the Employment Agreement (collectively, the "Restrictive Covenant Obligations").  Employee agrees that the Restrictive Covenant Obligations are reasonable as to their terms and are fully enforceable against him.  Employee represents and agrees that Employee has not to-date breached any of the Restrictive Covenant Obligations.

		
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				 13.
			Trade Secrets.

		
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				 (a)
			Protection of Trade Secrets.  Notwithstanding the provisions of Section 7 of the Employment Agreement, the parties agree that nothing in this Agreement nor in Section 7 of the Employment Agreement shall be construed to limit or negate any statutory or common law of torts or trade secrets, where such law provides Company with broader protection than that provided in this Agreement or in Section 7 of the Employment Agreement.  After termination of employment, Employee shall not use or disclose the trade secrets of Company as long as they remain trade secrets.

		
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				 (b)
			Notification of Trade Secret Rights.  Employee will be immune from criminal and civil liability under any federal or state trade secret law for any disclosure of the Company's trade secret(s) that is made (i) in confidence to an attorney or to a federal, state or local government official solely for the purpose of reporting or investigating a suspected violation of law and/or (ii) in a complaint or other document filed in a lawsuit or other proceeding, provided such filing is made under seal.  If Employee files a lawsuit alleging retaliation by the Company for reporting a suspected violation of law, Employee may disclose the relevant trade secret to Employee's attorney, and may use the trade secret information in the court proceeding provided (i) any filing containing the trade secret is made under seal; and (ii) Employee does not disclose the trade secret, except pursuant to a court order.

		
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				 14.
			Specific Performance.  Employee acknowledges and agrees that irreparable injury to Company may result in the event that Employee breaches any covenant in this Agreement, and that the remedy at law for the breach of any such covenant will be inadequate.  If Employee engages in any act in violation of any provision of paragraph 13, Employee agrees that Company shall be entitled, in addition to such other remedies and damages that may be available to it by law or under this Agreement, to injunctive relief to enforce such provisions without the necessity of posting a bond.

		
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				 15.
			Return of Company Property.  Employee represents and agrees that Employee has returned any and all Company records and files and any copies thereof (whether in electronic or paper form), keys, keyless entry cards, documents, confidential or proprietary information, computer equipment, CDs, computer software programs, vehicles, credit cards and any other 
		

		 

		

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			property owned by or belonging to the Company in Employee's possession or under Employee's control on or after the Resignation Date without any originals or copies being kept by Employee or conveyed to any other person or entity.  Employee acknowledges and agrees that Employee will use reasonable care to properly ship any Company property back to the Company via a shipment method that does not cause damage or destruction to Company property.  Employee also agrees to cooperate with any request by the Company to review the Employee's personal electronic device(s) for purposes of removing any Company data.  Employee acknowledges that, to the extent permitted by law, Employee will be liable to Company for the Company's costs incurred in enforcing its rights under this paragraph 15, including Company's reasonable attorneys' fees.

		
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				 16.
			Waiver of Reimbursement of COBRA Premiums.  Employee waives any right to receive reimbursement by the Company for any and all COBRA premiums paid by Employee, as stated under section 5.2(a)(iv) of the Employment Agreement, should Employee elect to continue Employee’s healthcare coverage. 

		
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				 17.
			Transition Consulting Assistance.  As a precondition for receiving certain benefit(s) specified in paragraph 2(c) above, following execution of this Agreement, Employee agrees that Employee will make himself available at reasonable times and use his best efforts to answer any of the Company's questions or to otherwise assist the Company in making an orderly transition.  Without limitation to the foregoing, Employee acknowledges and agrees that he will use his best efforts to answer any of the Company's inquiries concerning matters for which he was responsible during his active employment with the Company.  Employee further acknowledges and agrees that he shall receive no additional consideration for time spent answering the Company's questions or otherwise providing such assistance as described in this paragraph 17, as the consideration referenced in paragraph 2(c) above represents adequate consideration for his answering such questions and otherwise providing such assistance.

		
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				 18.
			Binding Agreement.  This Agreement shall be binding upon Employee and upon Employee's heirs, administrators, representatives, executors, successors and assigns and shall inure to the benefit of the Releasees and to their heirs, administrators, representatives, executors, successors and assigns.

		
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				 19.
			Jurisdiction and Venue.  This Agreement shall be governed by and construed in accordance with the laws of the State of Florida.  Any controversy between Company and Employee arising under or relating to this Agreement shall be determined by the Circuit Court of Miami-Dade County, Florida, and the parties agree not to present any such controversy to any other court or forum.  The parties expressly consent to the exclusive jurisdiction of the Circuit Court of Miami-Dade County, Florida.

		
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				 20.
			Severability.  It is understood and agreed that the provisions of this Agreement shall be deemed severable, and the invalidity or unenforceability of any one or more of the provisions herein shall not affect the validity and enforceability of the other provisions herein.

		
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				 21.
			Complete and Exclusive Agreement.  The parties understand and agree that this Agreement is final and binding and constitutes the complete and exclusive statement of the terms and conditions of settlement, that no representations or commitments were made by the parties to induce this Agreement other than as expressly set forth herein and that this Agreement is fully 
		

		 

		

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			understood by the parties.  This Agreement may not be modified or supplemented except by a subsequent written agreement signed by the party against whom enforcement is sought.

		
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				 22.
			Effect of Termination.  Employee acknowledges and agrees that the Employment Agreement has terminated and that all obligations imposed on either party under the Employment Agreement have ceased effective the date of Employee's termination from employment, except as otherwise expressly provided in the Employment Agreement.  Notwithstanding the foregoing, Employee agrees that Sections 5.8(a), 5.8(b), 6, 7, 7.1(a), 7.1(b), 7.1(c), 7.1(d), 8.1, 8.2, 8.3, 8.4, 8.5, 8.6, 8.7, 9, 10, 11, 13.1, 13.2, 13.3, 13.4, 14.1, 14.2, 15, 16, 17, 18, 19, 20, 21, 22.1, 22.2, 22.3, 22.4, 22.5, 23, 24, 26, 27, 28, and 29 of the Employment Agreement shall continue in full force and effect notwithstanding the termination of Employee's employment with the Company and the termination of the Employment Agreement.

		
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				 23.
			Acknowledgement of Resignation.  By signing this Agreement, Employee acknowledges that Employee has resigned from the position of Chief Executive Officer of The Female Health Company Division of the Company, and all other positions Employee holds with respect to the Company or any subsidiary thereof, effective as of the Resignation Date.

		
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				 24.
			Complete and Exclusive Agreement.  The parties understand and agree that this Agreement (with Exhibit A attached hereto) is final and binding and, excepting solely the Restrictive Covenant Obligations referenced in paragraph 12 and the provisions of the Employment Agreement referenced in paragraph 22, constitutes the complete and exclusive statement of the terms and conditions of settlement, that no representations or commitments were made by the parties to induce this Agreement other than as expressly set forth herein and that this Agreement is fully understood by the parties.  This Agreement may not be modified or supplemented except by a subsequent written agreement signed by the party against whom enforcement is sought.

		
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				 25.
			Consideration Period.  Employee represents and agrees that Employee has had the opportunity and time to consult with legal counsel concerning the provisions of this Agreement, and that the Company has given Employee up to twenty-one (21) days to consider this Agreement.  Any changes made to this Agreement before Employee signs it, whether material or immaterial, will not restart the 21-day consideration period.  Employee understands and agrees that if Employee does not return the signed Agreement by the close of business on the 22nd day after Employee receives this Agreement, this Agreement will be automatically revoked by the Company and amounts payable hereunder shall be forfeited.  Employee further understands and agrees that if Employee does not return the signed Exhibit A by the close of business on the 10th day after the date on which Employee signs the Agreement, this Agreement will be automatically revoked by the Company and amounts payable hereunder shall be forfeited.  

		
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				 26.
			Employee Right to Revoke.  Employee may revoke the Agreement within seven (7) calendar days of Employee's signing of the Agreement.  For this revocation to be effective, written notice must be received by Philip R. Greenberg, Executive Vice President – Legal, Veru Inc., 4400 Biscayne Boulevard, Suite 888, Miami, Florida 33137, no later than the seventh calendar day after Employee signs the Agreement.

		
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				 27.
			Company Right to Revoke.  The parties understand and agree that this Agreement will not be effective until the Company's signing of this Agreement, and that the Company has the 
		

		 

		

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			right to revoke its offer at any time prior to the Company’s signing of this Agreement, which revocation may be made for any reason including, without limitation, Employee's making of derogatory comments or statements of a negative nature about the Company, its directors, officers, shareholders, employees and agents to anyone, including, but not limited to, current and former Company customers, employees, suppliers, vendors, and referral sources.

		
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				 28.
			Counterparts.  This Agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement.  Signatures to this Agreement transmitted by facsimile, by electronic mail in portable document format (.pdf) form, or by any other electronic means intended to preserve the original graphic and pictorial appearance of a document will have the same effect as physical delivery of the paper document bearing the original signature.

		
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				 29.
			Code Section 409A.  This Agreement is intended to satisfy the requirements for the deferral of compensation under section 409A of the Internal Revenue Code of 1986, as amended (the "Code") or an exemption thereunder.  All terms used in this Agreement shall be interpreted to the maximum extent possible to satisfy Code section 409A.  Notwithstanding anything herein to the contrary, payments provided under this Agreement may be made upon a permissible payment event in a manner that complies with Code section 409A or an applicable exemption.  Any right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments.  Any separate payment or benefit under this Agreement or otherwise that may be excluded from Code section 409A as separation pay, a short-term deferral or any other applicable exemption or provision of Code section 409A shall be excluded from Code section 409A to the maximum extent possible.  Notwithstanding anything herein to the contrary, the Company may amend this Agreement without the consent of Employee to add, alter or remove any provision that the Company deems necessary, appropriate or advisable to comply with Code section 409A.  If there is more than one way to add, alter or remove a provision to comply with Code section 409A, the Company shall have the discretion to choose the alternative it believes to be in the best interest of Employee and the Company.  

		
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				 30.
			Acknowledgment.  The undersigned parties acknowledge and agree that they have carefully read the foregoing document, that a copy of the document was available to them prior to execution, that they understand its contents including its release of claims, that they have been given the opportunity to ask any questions concerning the Agreement and its contents, and have signed this Agreement as their free and voluntary act.

		
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			IN WITNESS WHEREOF, the parties herein executed this Separation Agreement and General Release as of the date appearing next to their signatures.
		

		
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						Veru Inc.

					
						 

					
						 

				
	
					
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						Date: April 18, 2019

					
					
						 

					
						By:  /s/ Mitchell S. Steiner                                         

					
						 

					
						Its:  Chief Executive Officer and President

				
	
					
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			CAUTION: THIS IS A RELEASE.  THE COMPANY HEREBY
ADVISES EMPLOYEE TO CONSULT WITH AN ATTORNEY AND READ IT BEFORE SIGNING.  THIS AGREEMENT MAY BE REVOKED
IN WRITING BY EMPLOYEE WITHIN SEVEN (7) CALENDAR DAYS OF EMPLOYEE'S EXECUTION OF THE DOCUMENT.
		

		
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						Date:  April 18, 2019

					
					
						 

					
						 

					
						/s/ Charles T. Todd, Jr.        

					
						Charles T. Todd, Jr.

				

		
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			9Exhibit 10.3

		

			Exhibit 10.3

		

		
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			SECOND AMENDMENT TO 
		

		
			CREDIT AGREEMENT & AMENDMENT TO RESIDUAL ROYALTY AGREEMENT 
		

		
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			THIS SECOND AMENDMENT TO CREDIT AGREEMENT AND AMENDMENT TO RESIDUAL ROYALTY AGREEMENT (this “Amendment”), dated as of May 13, 2019, is entered into by and among VERU INC., a Wisconsin corporation (“Borrower”), each of the undersigned financial institutions (individually each a “Lender” and collectively “Lenders”) and SWK FUNDING LLC, a Delaware limited liability company, in its capacity as administrative agent for the other Lenders (in such capacity, “Agent”).
		

		
			RECITALS
		

		
			WHEREAS, Borrower, Agent and Lenders entered into that certain Credit Agreement dated as March 5, 2018 (as the same may be amended, modified or restated from time to time, being hereinafter referred to as the “Credit Agreement”); 
		

		
			WHEREAS, Borrower and Agent entered into that certain Residual Royalty Agreement dated as of March 5, 2018, (as the same may be amended, modified or restated from time to time, being hereinafter referred to as the “Royalty Agreement”); and 
		

		
			WHEREAS, Borrower, Agent and Lenders, desire to amend the Credit Agreement and the Royalty Agreement as set forth herein. 
		

		
			AGREEMENT
		

		
			NOW, THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:
		

			
	
			
				Article I
			

Definitions

			
	
			
				 1.1
			Capitalized terms used in this Amendment are defined in the Credit Agreement or the Royalty Agreement, as applicable, as each is amended hereby, unless otherwise stated.

			
	
			
				Article II
			

Amendments

			
	
			
				 2.1
			Amendments to Credit Agreement.  

			
	
			
				 2.1.1
			Amendments to Section 1.1.  Effective as of the date hereof, Section 1.1 of the Credit Agreement is hereby amended as follows:

			
	
			
				 (a)
			The definition of “Revenue-Based Cap” is amended and restated to read as follows:

		

		

		 

 

		“Revenue-Based Cap means, as of any date of determination, an amount equal to (i) 1.765 multiplied by (ii) the aggregate amount of the Term Loan actually advanced by Lenders pursuant to Section 2.2 hereof on or prior to such date.” 
		

			
	
			
				 (b)
			The definitions of “Subsequent Term Loan A” and “Subsequent Term Loan B” are deleted in their entirety, and any reference to such terms in the Credit Agreement or any other Loan Document shall be deemed to be a reference to the Term Loan as made on the Closing Date.

			
	
			
				 (c)
			The definition of “Term Loan” is amended and restated to read as follows:

		
			“Term Loan has the meaning set forth in Section 2.1.”
		

			
	
			
				 (d)
			The definition of “Term Loan Commitment” is amended and restated to read as follows:

		
			“Term Loan Commitment means $10,000,000.”
		

			
	
			
				 2.1.2
			Amendment to Section 2.1.  Effective as of the date hereof, Section 2.1 of the Credit Agreement is amended and restated in its entirety to read as follows:

		
			“2.1Term Loan Commitments.  
		

		
			On and subject to the terms and conditions of this Agreement, each Lender, severally and for itself alone, agrees to make a multi-draw term loan to Borrower (each such loan, individually and collectively, a “Term Loan”) in an amount equal to such Lender’s applicable Pro Rata Term Loan Share of the Term Loan Commitment.  The Commitments of Lenders to make any portion of the Term Loan shall terminate concurrently with the making of such portion of the Term Loan, such portion terminated to equal the amount of such Term Loan.  The Loan is not a revolving credit facility, and therefore any amount thereof that is repaid or prepaid by Borrower, in whole or in part, may not be re-borrowed.”
		

			
	
			
				 2.1.3
			Amendment to Section 2.2.  Effective as of the date hereof, Section 2.2 of the Credit Agreement is amended and restated in its entirety to read as follows:

		
			“2.2Loan Procedures
		

		
			On the Closing Date, Lenders advanced to Borrower an amount equal to Ten Million and No/100 Dollars ($10,000,000).  Pursuant to that certain Second Amendment to Credit Agreement  and Amendment to Residual Royalty Agreement, dated as of May 13, 2019, Agent, Lenders and Borrower agreed to terminate the availability of the “Subsequent Term Loan A” and “Subsequent Term Loan B” (as such terms were defined in this Agreement prior to giving effect to such Amendment).”
		

		 

		

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				 2.1.4
			Amendment to Section 2.3.  Effective as of the date hereof, Section 2.3 of the Credit Agreement is amended and restated in its entirety to read as follows:

		
			“2.3Commitments Several.
		

		
			The failure of any Lender to make the initial Term Loan on the Closing Date shall not relieve any other Lender of its obligation (if any) to make a Loan on the applicable date, but no Lender shall be responsible for the failure of any other Lender to make any Term Loan to be made by such other Lender.”
		

			
	
			
				 2.1.5
			Amendment to Section 2.9.1(a). Effective as of the date hereof, Section 2.9.1(a)(i) of the Credit Agreement is amended and restated in its entirety to read as follows:

		
			“(i) the aggregate Revenue-Based Payments payable during the period commencing as of January 1 of the calendar year of which such Fiscal Quarter is part, through the end of such Fiscal Quarter (such elapsed portion of the Fiscal Year, the “Elapsed Period”), calculated as,
		

		
			(A)if the Product Revenue for the twelve (12) month period ended as of the last day of such Fiscal Quarter is less than $10,000,000, then thirty-two and one-half of one percent (32.50%) of Product Revenue during the Elapsed Period; or 
		

		
			(B)if the Product Revenue for the twelve (12) month period ended as of the last day of such Fiscal Quarter is equal to or greater than $10,000,000, then:
		

		
			(1) as it relates to each Fiscal Quarter in the 2019 calendar year, the sum of: 
		

		
			(aa)Twelve and one-half of one percent (12.50%) of Product Revenue during the Elapsed Period up to and including $12,500,000; plus
		

		
			(bb)Five percent (5.00%) of Product Revenue during the Elapsed Period greater than $12,500,000; minus;
		

		
			(2) as it relates to each Fiscal Quarter in the 2020 calendar year, the sum of: 
		

		
			(aa)Twenty-five percent (25.00%) of Product Revenue during the Elapsed Period up to and including $12,500,000; plus
		

		
			(bb)Ten percent (10.00%) of Product Revenue during the Elapsed Period greater than $12,500,000; minus; or
		

		

		

		 

		

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		(3) as it relates to the Fiscal Quarter ending March 31, 2021 and for each Fiscal Quarter thereafter, the sum of: 
		

		
			(aa)Thirty percent (30.00%) of Product Revenue during the Elapsed Period up to and including $12,500,000; plus
		

		
			(bb)Twenty percent (20.00%) of Product Revenue during the Elapsed Period greater than $12,500,000; minus”
		

			
	
			
				 2.1.6
			Amendment to Section 5.  Effective as of the date hereof, the introductory sentence in Section 5 of the Credit Agreement is amended and restated to read as follows:

		
			“To induce Agent and Lenders to enter into this Agreement and to induce Lenders to make the Loan hereunder, Borrower represents and warrants to Agent and Lenders, as of the Closing Date that:”
		

			
	
			
				 2.1.7
			Amendment to Annex I.  Effective as of the date hereof, Annex I to the Credit Agreement is amended and restated to read as follows:

		
			ANNEX I
		

		
			Commitments and Pro Rata Term Loan Shares
		

		
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						Lender

					
					
						Commitment

					
					
						Pro Rata Term Loan Share

				
	
					
						SWK Funding LLC

					
					
						$10,000,000

					
					
						100%

				

		
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				 2.2
			Amendments to Royalty Agreement.

			
	
			
				 2.2.1
			Amendment to Section 1.1.  Effective as of the date hereof, the definition of “Residual Royalty Commencement Date” in Section 1.1 of the Royalty Agreement is hereby amended and restated to read as follows:

		
			“‘Residual Royalty Commencement Date” means, the date on which Product Revenue received by the Company would have otherwise resulted in the payment in full of the Deemed Residual Royalty Return Premium (as defined herein) pursuant to the payment mechanics set forth in Section 2.9.1 of the Credit Agreement without taking into account the amendments to such Section 2.9.1 as set forth in that certain Second Amendment to Credit Agreement and Amendment to Residual Royalty Agreement dated as of May 13, 2019.  For the avoidance of doubt, because the Deemed Residual Royalty Return Premium will be calculated without giving effect to the amendments to Section 2.9.1 as set forth in that certain Second Amendment to Credit Agreement and Amendment to Residual Royalty 
		

		 

		

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		Agreement dated as of May 13, 2019, SWK may not have actually received an amount equal to the Deemed Residual Royalty Return Premium on such date pursuant to Section 2.9.1 as of the Residual Royalty Commencement Date.”
		

			
	
			
				 2.2.2
			Addition to Section 1.1.  Effective as of the date hereof, the following definitions are hereby added to Section 1.1 of the Royalty Agreement:

		
			“‘Deemed Residual Royalty Return Premium’ means, as of any date of determination, an amount equal to the sum (if positive) of: (a) Residual Royalty Revenue-Based Cap, minus (b) all Revenue-Based Payments that would have been paid to Agent, for the benefit of Lenders, on or prior to such date pursuant to the payment mechanics set forth in Section 2.9.1 of the Credit Agreement without taking into account the amendments to such Section 2.9.1 as set forth in that certain Second Amendment to Credit Agreement and Amendment to Residual Royalty Agreement dated as of May 13, 2019, minus (c) the outstanding principal amount of the Loans as of such date.”
		

		
			“‘Residual Royalty Revenue-Based Cap’ means, as of any date of determination, an amount equal to (i) 1.75 multiplied by (ii) the aggregate amount of the Term Loan actually advanced by Lenders pursuant to Section 2.2 of the Credit Agreement on or prior to such date.”
		

			
	
			
				 2.2.3
			Amendment to Section 2.1(a). Effective as of the date hereof, Section 2.1(a) of the Royalty Agreement is amended and restated in its entirety to read as follows:

		
			“(a)Commencing as of the Residual Royalty Commencement Date, the Company promises to pay to SWK an amount based on a percentage of the aggregate of (without duplication) the Net Sales, Royalties and any other income or revenue realized by the Company solely related to or arising from the FC2 Product, calculated in accordance with GAAP (collectively, the “Product Revenue”) in each Fiscal Quarter (or, in the case of the initial Fiscal Quarter in which the Residual Royalty Commencement Date occurs, partial Fiscal Quarter) (the “Revenue-Based Payment”).  The Revenue-Based Payment with respect to each Fiscal Quarter shall be payable on the Payment Date next following the end of such Fiscal Quarter.  The Revenue-Based Payment with respect to each Fiscal Quarter shall be calculated as, five percent (5.00%) of Product Revenue during the applicable Fiscal Quarter (or portion thereof during the first Fiscal Quarter).  For purposes of clarity, (i) Product Revenue pertaining to any Fiscal Quarter (or portion thereof with respect to the Fiscal Quarter containing the Residual Royalty Commencement Date) arising prior to the Residual Royalty Commencement Date, and all payments relating thereto, shall be payable in accordance with the terms of the Credit Agreement, (ii) all Product Revenue pertaining to the portion of the Fiscal Quarter containing the Residual Royalty Commencement Date occurring after the Residual Royalty Commencement Date and all Product Revenue pertaining to any Fiscal Quarters thereafter until the date on which the Obligations under the Credit Agreement are Paid in Full (the “Payoff Date”), and all payments 
		

		 

		

			5

		

 

		relating thereto, shall be payable in accordance with the terms of both the Credit Agreement and this Agreement, on a separate basis, and (iii) all Product Revenue pertaining to the portion of the Fiscal Quarter containing the Payoff Date occurring after the Payoff Date and all Product Revenue pertaining to any Fiscal Quarters thereafter, and all payments relating thereto, shall be payable in accordance with the terms of this Agreement.  For further clarity, (i) each dollar of Product Revenue pertaining to the period between the Residual Royalty Commencement Date and the Payoff Date, will be subject to both the obligation to pay a percentage thereof to the Agent under the Credit Agreement and the obligation to pay a percentage thereof to SWK as a Revenue-Based Payment hereunder, and (ii) in no event will any amounts paid under the Credit Agreement satisfy any portion of the Company’s obligations under this Agreement nor shall any amounts paid under this Agreement satisfy any portion of the Company’s obligations under the Credit Agreement.”
		

		
			Article III

Conditions Precedent
		

			
	
			
				 3.1
			Conditions Precedent.  The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent in a manner satisfactory to Agent, unless specifically waived in writing by Agent in its sole discretion:

			
	
			
				 (A)
			Agent shall have received this Amendment duly executed by Borrower.

			
	
			
				 (B)
			The representations and warranties contained herein and in the Credit Agreement and the other Loan Documents, as each is amended hereby, shall be true and correct as of the date hereof, as if made on the date hereof, except for such representations and warranties as are by their express terms limited to a specific date.

			
	
			
				 (C)
			No Default or Event of Default under the Credit Agreement, as amended hereby, shall have occurred and be continuing, unless such Default or Event of Default has been otherwise specifically waived in writing by Agent.

			
	
			
				 (D)
			All corporate proceedings taken in connection with the transactions contemplated by this Amendment and all documents, instruments and other legal matters incident thereto shall be satisfactory to Agent; and Borrower shall provide to Agent an officer’s certificate with resolutions in form and substance acceptable to Agent.

		
			Article IV

No Waiver, Ratifications, Representations and Warranties
		

			
	
			
				 4.1
			No Waiver.  Nothing contained in this Amendment or any other communication between Agent, any Lender, Borrower or any other Loan Party shall be a waiver of any past, present or future violation, Default or Event of Default of Borrower under the Credit Agreement or any Loan Document.  Agent and each Lender hereby expressly reserves any rights, privileges and remedies under the Credit Agreement and each Loan Document that Lender may have with respect to any violation, Default or Event of Default, and any failure by Agent or any Lender to 
		

		 

		

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			exercise any right, privilege or remedy as a result of the violations set forth above shall not directly or indirectly in any way whatsoever either (i) impair, prejudice or otherwise adversely affect the rights of Agent or any Lender, except as set forth herein, at any time to exercise any right, privilege or remedy in connection with the Credit Agreement or any Loan Document, (ii) amend or alter any provision of the Credit Agreement or any Loan Document or any other contract or instrument or (iii) constitute any course of dealing or other basis for altering any obligation of Borrower or any other Loan Party or any rights, privilege or remedy of Agent or any Lender under the Credit Agreement or any Loan Document or any other contract or instrument.  Nothing in this Amendment shall be construed to be a consent by Agent or any Lender to any prior, existing or future violations of the Credit Agreement or any Loan Document. 

			
	
			
				 4.2
			Ratifications.  The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent terms and provisions set forth in the Credit Agreement and the other Loan Documents, and, except as expressly modified and superseded by this Amendment, the terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full force and effect.  Borrower, the other Loan Parties, Lenders and Agent agree that the Credit Agreement and the other Loan Documents, as amended hereby, shall continue to be legal, valid, binding and enforceable in accordance with their respective terms.  Borrower and the other Loan Parties agrees that this Amendment is not intended to and shall not cause a novation with respect to any or all of the Obligations.

			
	
			
				 4.3
			Representations and Warranties.  Borrower hereby represents and warrants to Agent and Lenders that (a) the execution, delivery and performance of this Amendment, any and all other Loan Documents executed and/or delivered in connection herewith have been authorized by all requisite action (as applicable) on the part of Borrower and will not violate the organizational documents of Borrower or such Loan Parties; (b) Borrower’s directors have authorized the execution, delivery and performance of this Amendment any and all other Loan Documents executed and/or delivered in connection herewith; (c) the representations and warranties contained in the Credit Agreement, as amended hereby, and any other Loan Document are true and correct on and as of the date hereof and on and as of the date of execution hereof as though made on and as of each such date (except to the extent such representations and warranties expressly relate to an earlier date); (d) no Default or Event of Default under the Credit Agreement, as amended hereby, has occurred and is continuing; (e) Loan Parties are in full compliance in all material respects with all covenants and agreements contained in the Credit Agreement and the other Loan Documents, as amended hereby; and (f) except as disclosed to Agent, Borrower has not amended its organizational documents since the date of the Credit Agreement. 

		
			Article V

Miscellaneous Provisions
		

			
	
			
				 5.1
			Survival of Representations and Warranties.   All representations and warranties made in the Credit Agreement or any other Loan Document, including, without limitation, any document furnished in connection with this Amendment, shall survive the execution and delivery of this Amendment and the other Loan Documents, and no investigation by Agent or any Lender or any closing shall affect the representations and warranties or the right of Agent and each Lender to rely upon them.

		 

		

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				 5.2
			Reference to Credit Agreement.  Each of the Credit Agreement and the other Loan Documents, and any and all other Loan Documents, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement, as amended hereby, are hereby amended so that any reference in the Credit Agreement and such other Loan Documents to the Credit Agreement shall mean a reference to the Credit Agreement, as amended hereby.

			
	
			
				 5.3
			Expenses of Agent.  As provided in the Credit Agreement, Borrower agrees to pay on demand all costs and expenses incurred by Agent, or its Affiliates, in connection with the preparation, negotiation, and execution of this Amendment and the other Loan Documents executed pursuant hereto and any and all amendments, modifications, and supplements thereto, including, without limitation, the reasonable costs and fees of legal counsel, and all costs and expenses incurred by Agent and each Lender in connection with the enforcement or preservation of any rights under the Credit Agreement, as amended hereby, or any other Loan Documents, including, without, limitation, the reasonable costs and fees of legal counsel.    

			
	
			
				 5.4
			Severability.  Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable.

			
	
			
				 5.5
			Successors and Assigns.  This Amendment is binding upon and shall inure to the benefit of Agent and each Lender and Borrower and their respective successors and assigns, except that no Loan Party may assign or transfer any of its rights or obligations hereunder without the prior written consent of Agent.

			
	
			
				 5.6
			Counterparts.  This Amendment may be executed in one or more counterparts, each of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument.  This Amendment may be executed by facsimile or electronic (.pdf) transmission, which facsimile or electronic (.pdf) signatures shall be considered original executed counterparts for purposes of this Section 5.6, and each party to this Amendment agrees that it will be bound by its own facsimile or electronic (.pdf) signature and that it accepts the facsimile or electronic (.pdf) signature of each other party to this Amendment.

			
	
			
				 5.7
			Effect of Waiver.  No consent or waiver, express or implied, by Agent to or for any breach of or deviation from any covenant or condition by Borrower shall be deemed a consent to or waiver of any other breach of the same or any other covenant, condition or duty.

			
	
			
				 5.8
			Headings.  The headings, captions, and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

			
	
			
				 5.9
			Applicable Law.  THE TERMS AND PROVISIONS OF SECTIONS 10.17 (GOVERNING LAW) AND 10.18 (FORUM SELECTION; CONSENT TO JURISDICTION) OF THE CREDIT AGREEMENT ARE HEREBY INCORPORATED HEREIN BY REFERENCE, AND SHALL APPLY TO THIS AMENDMENT MUTATIS MUTANDIS AS IF FULLY SET FORTH HEREIN.  

		 

		

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				 5.10
			Final Agreement.  THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED.  THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY Borrower AND AGENT.

		
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			Exhibit 10.3

		

		

			 

		

		IN WITNESS WHEREOF, this Amendment has been executed and is effective as of the date first written above.
		

		
			BORROWER:
		

		
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						___________________________________________

					
						 

				
	
					
						VERU INC., 

					
						a Wisconsin corporation

					
						 

					
						 

					
						

					
						By:

					
						Name:

					
						Title:___________________________________________

				

		
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