Document:

Exhibit 4.1

 

 

FORM OF

WARRANT AGREEMENT

 

To Purchase Shares of the Common Stock of

 

ALLIQUA HOLDINGS, INC.

 

Dated as of [●], 2016 (the “Effective
Date”)

 

WHEREAS, Alliqua BioMedical,
Inc., a Delaware corporation (“Alliqua”), Alliqua Holdings, Inc., a Delaware corporation and a wholly-owned
subsidiary of Alliqua (“Parent”), Chesapeake Merger Corp., a Delaware corporation and a wholly-owned subsidiary
of Parent, and Soluble Systems, LLC, a Virginia limited liability company (the “Warrantholder”), have entered
into that certain Contribution Agreement and Plan of Merger, dated as of October 5, 2016 (the “Contribution and Merger
Agreement”); and

 

WHEREAS, pursuant to
the Contribution and Merger Agreement, and as part of the consideration payable to the Warrantholder for, among other things, the
contribution of substantially all of the assets and property of the Warrantholder to Parent, Parent has agreed to issue to the
Warrantholder this Warrant Agreement (this “Agreement”), evidencing the right to purchase shares of Common Stock
of Parent (this “Warrant”);

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Parent and the Warrantholder agree as follows:

 

SECTION 1.  GRANT OF
THE RIGHT TO PURCHASE COMMON STOCK

 

(a)   
 For value received, Parent hereby grants to the Warrantholder, and the Warrantholder is entitled, upon the terms and
subject to the conditions hereinafter set forth, to subscribe for and purchase, from Parent, up to the number of fully paid and
non-assessable shares of Common Stock (as defined below) equal to the Number of Shares (as defined below), at a purchase price
per share equal to the Exercise Price (as defined below). The Number of Shares and Exercise Price of such shares are subject to
adjustment as provided in Section 8. As used herein, the following terms shall have the following meanings:

 

“Charter”
means Parent’s Certificate of Incorporation, as may be amended and in effect from time to time.

 

“Common Stock”
means Parent’s common stock, par value $0.001 per share, as presently constituted under the Charter, and any class and/or
series of Parent capital stock for or into which such common stock may be converted or exchanged in any reorganization, recapitalization
or similar transaction.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended.

 

     

     

    

 

“Excluded Merger
Event” means any of the transactions contemplated by the Contribution and Merger Agreement.

 

“Exercise Price”
means $1.068, subject to adjustment from time to time in accordance with the provisions of this Agreement.

 

“Lock-Up Agreement”
means that certain Lock-Up Agreement, dated as of [●], 2016, by and between Parent and the Warrantholder.

 

“Merger Event”
means any of the following: (i) a sale, lease or other transfer of all or substantially all assets of Parent, (ii) any merger or
consolidation other than the Excluded Merger Event involving Parent in which Parent is not the surviving entity or in which the
outstanding shares of Parent’s capital stock are otherwise converted into or exchanged for shares of capital stock or other
securities or property of another entity and in which the holders of a majority of the outstanding shares of capital stock of Parent
immediately prior to such merger or consolidation do not hold a majority of the surviving entity or other entity immediately following
such merger or consolidation, or (iii) any sale by holders of the outstanding voting equity securities of Parent in a single transaction
or series of related transactions of shares constituting a majority of the outstanding combined voting power of Parent.

 

“Purchase Price”
means, with respect to any exercise of this Warrant, an amount equal to the Exercise Price (subject to adjustment from time to
time in accordance with the provisions of this Agreement) multiplied by the number of shares of Common Stock as to which this Warrant
is then exercised.

 

“Rule 144”
means Rule 144 of the Securities Act, as amended.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

(b)              
Number of Shares. This Warrant shall be exercisable for 4,000,000 shares of Common Stock, subject to adjustment
from time to time in accordance with the provisions of this Agreement, subject to further adjustment thereafter from time to time
in accordance with the provisions of this Agreement.

 

SECTION 2. TERM OF THE AGREEMENT

 

The term of this Agreement
and the right to purchase Common Stock as granted herein shall commence on the Effective Date and, subject to Section 8(a),
shall be exercisable for a period ending upon the fifth (5th) annual anniversary of the Effective Date.

 

SECTION 3. EXERCISE
OF THE PURCHASE RIGHTS

 

(a)               
Exercise. The purchase rights set forth in this Agreement are exercisable by the Warrantholder, in whole or in part,
at any time, or from time to time, prior to the expiration of the term set forth in Section 2, by tendering to Parent at
its principal office a notice of exercise in the form attached hereto as Exhibit I (the “Notice of Exercise”),
duly completed and executed. Promptly upon receipt of the Notice of Exercise and the payment of the Purchase Price in cash or certified
check, and in no event later than three business (3) days thereafter, Parent shall cause its transfer agent to issue to the Warrantholder
in book entry form the number of shares of Common Stock purchased, and Parent shall execute the acknowledgment of exercise in the
form attached hereto as Exhibit II (the “Acknowledgment of Exercise”) indicating the number of shares
which remain subject to future purchases under this Agreement, if any.

 

    	 	2	 

     

    

 

(b)              
Partial Exercise. Upon any partial exercise of this Warrant, Parent shall, upon the Warrantholder’s written
request and the surrender of this Warrant, promptly issue an amended Agreement representing the remaining number of shares purchasable
hereunder. All other terms and conditions of such amended Agreement shall be identical to those contained herein, including, but
not limited to the Effective Date hereof.

 

SECTION 4. RESERVATION
OF SHARES

 

(a)               
Reservation of Common Stock. During the term of this Agreement, Parent shall at all times, have authorized and reserved,
free from preemptive rights, a sufficient number of shares of Common Stock to provide for the exercise in full of the purchase
rights represented by this Warrant. Parent will take all such commercially reasonable action as may be necessary to assure that
such shares of Common Stock may be issued as provided herein without violation of any applicable law or regulation, or of any requirements
of the trading market upon which the Common Stock may be listed. Parent further covenants and agrees that all shares of Common
Stock, if any, that may be issued upon the exercise of this Warrant will, upon issuance, be validly issued and outstanding, fully
paid and non-assessable. The execution and delivery by Parent of this Agreement and the performance of all obligations of Parent
hereunder, including the issuance to the Warrantholder of the right to acquire the shares of Common Stock, have been duly authorized
by all necessary corporate action on the part of Parent.

 

SECTION 5. NO FRACTIONAL
SHARES

 

No fractional shares
of Common Stock shall be issued in connection with any exercise hereof, but in lieu of such fractional shares, Parent shall round
the number of shares to be issued upon exercise up to the nearest whole number of shares.

 

SECTION 6. NO RIGHTS AS STOCKHOLDER

 

Without limitation
of any provision hereof, the Warrantholder agrees that this Agreement does not entitle the Warrantholder to any voting rights or
other rights as a stockholder of Parent prior to the exercise of any of the purchase rights set forth in this Agreement.

 

SECTION 7. WARRANTHOLDER REGISTRY

 

Parent shall maintain
a registry showing the name and address of the registered holder of this Agreement. The Warrantholder’s initial address,
for purposes of such registry, is set forth in Section 10(f). The Warrantholder may change such address by giving written
notice of such changed address to Parent.

 

SECTION 8. ADJUSTMENT RIGHTS

 

The Exercise Price
and the number of shares of Common Stock purchasable hereunder are subject to adjustment from time to time, as follows:

 

    	 	3	 

     

    

 

(a)               
Merger Event. In connection with a Merger Event, this Warrant shall, upon the closing thereof, automatically and
without further action on the part of any party or other person, represent the right to receive the consideration payable on or
in respect of all shares of Common Stock that are issuable hereunder as of immediately prior to the closing of such Merger Event
less the Purchase Price for all such shares of Common Stock (such consideration to include both the consideration payable at the
closing of such Merger Event and all deferred consideration payable thereafter, if any, including, but not limited to, payments
of amounts deposited at such closing into escrow and payments in the nature of earn-outs, milestone payments or other performance-based
payments), and such Merger Event consideration shall be paid to the Warrantholder as and when it is paid to the holders of the
outstanding shares of Common Stock. For the avoidance of doubt, no adjustment shall be made pursuant to this Section 8(a)
for any Excluded Merger Event.

 

(b)              
Reclassification of Shares. Except for Merger Events subject to Section 8(a), if Parent at any time shall,
by combination, reclassification, exchange or subdivision of securities or otherwise, change any of the securities as to which
purchase rights under this Agreement exist into the same or a different number of securities of any other class or classes of securities,
this Agreement shall thereafter represent the right to acquire such number and kind of securities as would have been issuable as
the result of such change with respect to the securities which were subject to the purchase rights under this Agreement immediately
prior to such combination, reclassification, exchange, subdivision or other change. The provisions of this Section 8(b)
shall similarly apply to any successive combination, reclassification, exchange, subdivision or other change.

 

(c)               
Subdivision or Combination of Shares. If Parent at any time shall combine or subdivide its Common Stock, (i) in the
case of a subdivision, the Exercise Price shall be proportionately decreased and the number of shares for which this Warrant is
exercisable shall be proportionately increased, or (ii) in the case of a combination, the Exercise Price shall be proportionately
increased and the number of shares for which this Warrant is exercisable shall be proportionately decreased.

 

(d)              
Stock Dividends. If Parent at any time while this Agreement is outstanding and unexpired shall:

 

		(i)	pay a dividend with respect to the outstanding shares of Common Stock payable in additional shares
of Common Stock, then the Exercise Price shall be adjusted, as of the record date applicable to such dividend, to that price determined
by multiplying the Exercise Price in effect immediately prior to such date of determination by a fraction (A) the numerator of
which shall be the total number of shares of Common Stock outstanding immediately prior to such dividend or distribution, and (B)
the denominator of which shall be the total number of shares of Common Stock outstanding immediately after such dividend or distribution,
and the number of shares of Common Stock for which this Warrant is exercisable shall be proportionately increased; or

 

		(ii)	make any other dividend or distribution on or with respect to Common Stock, except any dividend
or distribution (A) in cash, or (B) specifically provided for in any other clause of this Section 8, then, in each such
case, provision shall be made by Parent such that the Warrantholder shall receive upon exercise of this Warrant a proportionate
share of any such distribution as though it were the holder of the Common Stock as of the record date fixed for the determination
of the shareholders of Parent entitled to receive such distribution.

 

    	 	4	 

     

    

 

(e)        Notice
of Certain Events. If: (i) Parent shall declare any dividend or distribution upon its outstanding Common Stock, payable in
stock, cash, property or other securities; (ii) Parent shall offer for subscription pro rata to the holders of its Common Stock
any additional shares of stock of any class or other rights; (iii) there shall be any Merger Event other than the Excluded Merger
Event; or (iv) there shall be any voluntary dissolution, liquidation or winding up of Parent; then, in connection with each such
event, Parent shall give the Warrantholder notice thereof at the same time and in the same manner as it gives notice thereof to
the holders of outstanding Common Stock.

  

SECTION 9. TRANSFERS

 

Subject to the terms
and conditions of the Lock-Up Agreement and compliance with applicable federal and state securities laws, and unless there is an
effective registration statement covering the sale of the securities represented by this Agreement, this Agreement and all rights
hereunder are transferable, in whole or in part, without charge to the holder hereof (except for transfer taxes) upon surrender
of this Agreement properly endorsed, with the prior written consent of Parent; provided, however, that Parent hereby consents to
the transfer of this Agreement and all rights hereunder by the Company to its members pursuant to the terms of the Company’s
operating agreement. Each taker and holder of this Agreement, by taking or holding the same, consents and agrees that this Agreement,
when endorsed in blank, shall be deemed negotiable, and that the holder hereof, when this Agreement shall have been so endorsed
and its transfer recorded on Parent’s books, shall be treated by Parent and all other persons dealing with this Agreement
as the absolute owner hereof for any purpose and as the person entitled to exercise the rights represented by this Agreement. Subject
to Parent’s prior written consent as set forth herein, the transfer of this Agreement shall be recorded on the books of Parent
upon receipt by Parent of a notice of transfer in the form attached hereto as Exhibit III (the “Transfer Notice”)
and an opinion of counsel (which may be Parent counsel) or other evidence reasonably satisfactory to Parent that such transfer
does not require registration under the Securities Act or any applicable state securities laws, at its principal offices and the
payment to Parent of all transfer taxes and other governmental charges imposed on such transfer.

 

SECTION 10. MISCELLANEOUS.

 

(a)               
Successors and Assigns. This Agreement shall be binding upon any successors or assigns of Parent and the Warrantholder.

 

(b)              
Remedies. In the event of any default hereunder, the non-defaulting party may proceed to protect and enforce its
rights either by suit in equity and/or by action at law, including but not limited to an action for damages as a result of any
such default, and/or an action for specific performance for any default where the non-defaulting party will not have an adequate
remedy at law and where damages will not be readily ascertainable.

 

(c)               
No Impairment of Rights. Parent will not, by amendment of its Charter or through any other means, avoid or seek to
avoid the observance or performance of any of the terms of this Agreement, but will at all times in good faith assist in the carrying
out of all such terms and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of
the Warrantholder against impairment.

 

(d)              
Additional Documents. Parent agrees to supply such other documents as the Warrantholder may from time to time reasonably
request.

 

.

    	 	5	 

     

    

(e)               
Severability. In the event any one or more of the provisions of this Agreement shall for any reason be held invalid,
illegal or unenforceable, the remaining provisions of this Agreement shall be unimpaired, and the invalid, illegal or unenforceable
provision shall be replaced by a mutually acceptable valid, legal and enforceable provision, which comes closest to the intention
of the parties underlying the invalid, illegal or unenforceable provision.

 

(f)               
Notices. Except as otherwise provided herein, any notice, demand, request, consent, approval, declaration, service
of process or other communication that is required, contemplated, or permitted under this Agreement, or with respect to the subject
matter hereof, shall be in writing, and shall be deemed to have been validly served, given, delivered, and received upon the earlier
of: (a) personal delivery to the party to be notified, (b) when sent by confirmed telex, electronic transmission or facsimile if
sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent
by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized
overnight courier, specifying next day delivery, with written verification of receipt, and shall be addressed to the party to be
notified as follows:

 

If to the Warrantholder:

 

Soluble Systems, LLC

11830 Canon Boulevard Suite A

Newport News, VA 23606

Facsimile: [_____]

Email: [_____]

Attention: [_____]

 

If to Parent:

 

Alliqua BioMedical, Inc.

Attention: Chief Financial Officer

1010 Stony Hill Road, Suite 200

Yardley, PA 19067

Facsimile: (215) 702-8535

Email: bposner@alliqua.com

Attention: Brian Posner

 

or to such other address as each party may designate for itself
by like notice.

 

(g)              
Entire Agreement; Amendments. This Agreement constitutes the entire agreement and understanding of the parties hereto
in respect of the subject matter hereof, and supersedes and replaces in their entirety any prior proposals, term sheets, letters,
negotiations or other documents or agreements, whether written or oral, with respect to the subject matter hereof. None of the
terms of this Agreement may be amended except by an instrument executed by each of the parties hereto.

 

(h)              
Headings. The various headings in this Agreement are inserted for convenience only and shall not affect the meaning
or interpretation of this Agreement or any provisions hereof.

 

(i)                
No Strict Construction. The parties hereto have participated jointly in the negotiation and drafting of this Agreement.
In the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly
by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship
of any provisions of this Agreement.

 

    	 	6	 

     

    

 

(j)                
No Waiver. No omission or delay by the Warrantholder at any time to enforce any right or remedy reserved to it, or
to require performance of any of the terms, covenants or provisions hereof by the Warrantholder at any time designated, shall be
a waiver of any such right or remedy to which the Warrantholder is entitled, nor shall it in any way affect the right of the Warrantholder
to enforce such provisions thereafter during the term of this Agreement.

 

(k)              
Survival. All agreements, representations and warranties contained in this Agreement or in any document delivered
pursuant hereto shall be for the benefit of the Warrantholder and shall survive the execution and delivery of this Agreement and
the expiration or other termination of this Agreement.

 

(l)                
Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the
State of New York, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.

 

(m)            
Consent to Jurisdiction and Venue. All judicial proceedings arising in or under or related to this Agreement may
be brought in any state or federal court of competent jurisdiction located in the State of New York in New York County. By execution
and delivery of this Agreement, each party hereto generally and unconditionally: (a) consents to personal jurisdiction in the State
of New York; (b) waives any objection as to jurisdiction or venue in the State of New York; (c) agrees not to assert any defense
based on lack of jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be bound by any judgment rendered
thereby in connection with this Agreement. Service of process on any party hereto in any action arising out of or relating to this
Agreement shall be effective if given in accordance with the requirements for notice set forth in Section 10(f), and shall
be deemed effective and received as set forth in Section 10(f). Nothing herein shall affect the right to serve process in
any other manner permitted by law or shall limit the right of either party to bring proceedings in the courts of any other jurisdiction.

 

(n)              
Mutual Waiver of Jury Trial. Because disputes arising in connection with complex financial transactions are most
quickly and economically resolved by an experienced and expert person and the parties wish applicable state and federal laws to
apply (rather than arbitration rules), the parties desire that their disputes arising under or in connection with this Agreement
be resolved by a judge applying such applicable laws. EACH OF PARENT AND THE WARRANTHOLDER SPECIFICALLY WAIVES ANY RIGHT IT MAY
HAVE TO TRIAL BY JURY OF ANY CAUSE OF ACTION, CLAIM, CROSS-CLAIM, COUNTERCLAIM, THIRD PARTY CLAIM OR ANY OTHER CLAIM (COLLECTIVELY,
“CLAIMS”) ASSERTED BY PARENT AGAINST THE WARRANTHOLDER OR ITS ASSIGNEE OR BY THE WARRANTHOLDER OR ITS ASSIGNEE
AGAINST PARENT RELATING TO THIS AGREEMENT. This waiver extends to all such Claims, including Claims that involve persons or entities
other than Parent and the Warrantholder; Claims that arise out of or are in any way connected to the relationship between Parent
and the Warrantholder; and any Claims for damages, breach of contract, specific performance, or any equitable or legal relief of
any kind, arising out of this Agreement.

 

(o)              
Counterparts. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in any number
of counterparts (including by facsimile or electronic delivery (PDF)), and by different parties hereto in separate counterparts,
each of which when so delivered shall be deemed an original, but all of which counterparts shall constitute but one and the same
instrument.

 

    	 	7	 

     

    

 

(p)              
Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or destroyed, Parent may,
on such terms as to indemnity or otherwise as it may reasonably impose (which shall, in the case of a mutilated Warrant, include
the surrender thereof), issue a new Warrant of like denomination and tenor as this Warrant so lost, stolen, mutilated or destroyed.
Any such new Warrant shall constitute an original contractual obligation of Parent, whether or not the allegedly lost, stolen,
mutilated or destroyed Warrant shall be at any time enforceable by anyone.

 

(q)              
Legends.

 

		i.	To the extent this Warrant and the shares of Common Stock issuable hereunder (and the securities
issuable, directly or indirectly, upon conversion of such shares of Common Stock, if any) are subject to the Lock-Up Agreement,
this Warrant and the shares of Common Stock issuable hereunder (and the securities issuable, directly or indirectly, upon conversion
of such shares of Common Stock, if any) may be imprinted with a lock-up legend in substantially the following form:

 

“THIS WARRANT AND THE SHARES ISSUABLE
UPON EXERCISE HEREOF ARE SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS ON TRANSFER AS SPECIFIED IN THAT CERTAIN LOCK-UP AGREEMENT
ENTERED INTO BY THE WARRANTHOLDER, A COPY OF WHICH IS ON FILE AT THE PRINCIPAL OFFICE OF ALLIQUA HOLDINGS, INC. IN YARDLEY, PENNSYLVANIA.
NO TRANSFER OR PLEDGE OF THE SECURITIES EVIDENCED HEREBY MAY BE MADE EXCEPT IN ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF
SAID AGREEMENT WHICH PROVIDES THAT THE LOCK-UP PERIOD SHALL EXPIRE ON [●],2017.”

 

		ii.	Until such time as is no longer required by applicable securities laws, this Warrant and the shares
of Common Stock issuable hereunder (and the securities issuable, directly or indirectly, upon conversion of such shares of Common
Stock, if any) may be imprinted with a legend in substantially the following form:

 

“THE SECURITIES EVIDENCED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION. THE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (1) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OR (2) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE STATE SECURITIES LAWS AND THE SECURITIES LAWS OF OTHER
JURISDICTIONS, AND IN THE CASE OF A TRANSACTION EXEMPT FROM REGISTRATION, UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL
REASONABLY SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE SECURITIES ACT AND SUCH OTHER APPLICABLE
LAWS.”

 

[Remainder of Page Intentionally Left
Blank]

 

    	 	8	 

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be executed by its officers thereunto duly authorized as of the Effective Date.

 

	PARENT:	ALLIQUA HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

  

 

[Signature Page to Warrant]

 

    	 	9	 

     

    

 

EXHIBIT I

 

NOTICE OF EXERCISE

 

To: [ ]

 

		(1)	The undersigned Warrantholder hereby elects to purchase
_______ shares of the Common Stock of Alliqua Holdings, Inc. pursuant to the terms of the Agreement dated the _____ day of _____
, 2016 (the “Agreement”) between Alliqua Holdings, Inc. and the Warrantholder, and tenders herewith payment
of the full Purchase Price in cash, together with all applicable transfer taxes, if any.

 

		(2)	Please issue a certificate or certificates representing
said shares of Common Stock in the name of the undersigned or in such other name as is specified below.

 

	 	 
	
         
	
        (Name)

	
         
	
        

         

	 	 
	
        
	
        (Address)

 

	WARRANTHOLDER: 	 
	 	 	 
	 	By: 	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Title: 	 

  

All capitalized terms used in this Notice of Exercise shall
have the meanings ascribed thereto in the Warrant Agreement to which this notice is attached. 

 

     

     

    

 

EXHIBIT II

 

1. ACKNOWLEDGMENT OF
EXERCISE

 

The undersigned [ ], hereby acknowledges
receipt of the “Notice of Exercise” from _____________________ to purchase [ ] shares of the Common Stock of Alliqua
Holdings, Inc., pursuant to the terms of the Warrant, and further acknowledges that [ ] shares remain subject to purchase under
the terms of the Warrant.

 

 

	PARENT:	ALLIQUA HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Title:	 

 

All capitalized terms used in this Acknowledgement of Exercise
shall have the meanings ascribed thereto in the Warrant Agreement to which this acknowledgement is attached. 

 

     

     

    

 

EXHIBIT III

 

TRANSFER NOTICE

 

(To transfer or assign
the foregoing Warrant execute this form and supply required information. Do not use this form to purchase shares.)

 

FOR VALUE RECEIVED, [____] all of or [_______] shares of the
foregoing Warrant and all rights evidenced thereby are hereby transferred and assigned to

 

	
        (Please Print)

         
	
         

         

	
         

         
	
         

         

	
        whose address is

         
	
         

         

	
         

         
	
         

         

	
         

         
	
                

         

	
         

         
	
        Dated:

         

	
         

         
	
         

         

	
         

         
	
         

         

	
         

         
	
        Holder’s Signature:

         

	
         

         
	
         

         

	
         

         
	
         

         

	
         

         
	
        Holder’s Address:

         

	
        Signature Guaranteed:

         

         
	
         

         

	
         

         
	
         

         

 

NOTE: The signature
to this Transfer Notice must correspond with the name as it appears on the face of the Agreement, without alteration or enlargement
or any change whatever. Officers of corporations and those acting in a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Agreement.Exhibit 10.1

 

FORM OF

VOTING AGREEMENT

 

This VOTING AGREEMENT,
dated as of ________________, 2016 (this “Agreement”), is by and between Alliqua BioMedical, Inc. (formerly
Alliqua Holdings, Inc.), a Delaware corporation (“Alliqua”), and Soluble Systems, LLC, a Virginia limited liability
company (“Soluble”). Alliqua and Soluble are individually referred to herein as a “Party”
and collectively as the “Parties”.

 

RECITALS

 

WHEREAS, Alliqua, Soluble,
Alliqua [Operating], Inc. (formerly Alliqua BioMedical, Inc.), a Delaware corporation and Chesapeake Merger Corp., a Delaware corporation
are parties to that certain Contribution Agreement and Plan of Merger (the “Contribution and Merger Agreement”),
pursuant to which, among other things, Soluble shall receive shares of Parent Common Stock (as defined in the Contribution and
Merger Agreement) and Warrants (as defined in the Contribution and Merger Agreement) as consideration for the Contributed Assets
(as defined in the Contribution and Merger Agreement) at the Closing (as defined in the Contribution and Merger Agreement); and

 

WHEREAS, pursuant to
Section 2.06(b) of the Contribution and Merger Agreement, Soluble agreed to vote fifty percent (50%) of the shares of Parent Common
Stock received under the Contribution and Merger Agreement (the “Subject Shares”) pursuant to the terms set
forth herein;

 

NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants and agreements contained herein, and intending to be legally bound hereby,
the Parties hereby agree, severally and not jointly, as follows:

 

		1.	Voting of Shares.

 

		(a)	From the period commencing with the execution and delivery of this Agreement and continuing through
the Expiration Date (as defined below), Soluble agrees that Soluble will be present, in person or represented by proxy, at all
stockholder meetings of Alliqua so that all Subject Shares may be counted for the purpose of determining the presence of a quorum
at such meetings.

 

		(b)	From the period commencing with the execution and delivery of this Agreement and continuing through
the Expiration Date, Soluble agrees that at every meeting of the stockholders of Alliqua called for any reason, and at every adjournment
thereof, and on every action or approval by written consent of the stockholders of the Company with respect to any matter, Soluble
will vote or cause to be voted, or consent or cause a consent to be given with respect to, all Subject Shares: (i) with respect
to the election of directors, in favor of the nominees for directors recommended by the Board of Directors of Alliqua (the “Board”)
or its nominating committee and (ii) with respect to any other matter requiring a shareholder vote, in accordance with the recommendation
of the Board. Soluble shall not enter into any agreement, arrangement or understanding with any person, including but not limited
to any natural person, firm, individual, partnership, joint venture, business trust, trust, association, corporation, company,
limited liability company, unincorporated entity or governmental authority, to take any action that would be inconsistent with
the voting arrangement set forth in the foregoing sentence or that would otherwise have the effect of violating the provisions
and agreements contained herein.

 

     

     

    

 

		(c)	Soluble shall take all action reasonably necessary to carry out the intention of this Agreement,
including without limitation, delivering to Alliqua upon Alliqua’s request executed proxies naming the proxies appointed
by the Board to vote all Subject Shares at any annual or special meeting of Alliqua’s stockholders. Alliqua shall deliver
a copy of such request to Soluble no later than 30 days before the meeting, and if executed proxies are not received by the date
that is 10 days before any such meeting, without further action on the part of the Parties hereto, Soluble shall be deemed to have
appointed Alliqua’s chief executive officer or chief financial officer as Soluble’s proxy and attorney in-fact for
the Subject Shares with respect to all matters brought before such meeting to be voted in accordance with this Agreement.

 

		(d)	Notwithstanding the foregoing, concurrently with the execution of this Agreement, Soluble agrees
to deliver to the chief executive officer and the chief financial officer of Alliqua a proxy in the form attached hereto as Exhibit
A (the “Proxy”) covering the Subject Shares, which shall be irrevocable to the extent provided in the General
Corporation Law of the State of Delaware.

 

		2.	Lock-Up. The Subject Shares shall be subject to the terms of that certain Lock-Up Agreement,
of even date herewith, executed by Soluble in favor of Alliqua.

 

		3.	Further Assurances. From time to time and without additional consideration, Soluble shall
execute and deliver, or cause to be executed and delivered, such additional instruments, and shall take such further actions, as
Alliqua may reasonably request for the purpose of carrying out and furthering the intent of this Agreement.

 

		4.	Representations and Warranties of Soluble. Soluble hereby represents and warrants to Alliqua
as follows:

 

		(a)	Authority. Soluble has all requisite power and authority to enter into this Agreement and
to consummate the transactions contemplated hereby. This Agreement has been duly authorized, executed and delivered by Soluble
and constitutes a valid and binding obligation of Soluble enforceable in accordance with its terms, except as enforcement may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally
and by general principles of equity (regardless of whether considered in a proceeding in equity or at law). Other than any filings
required to be made by Soluble or Alliqua with the Securities and Exchange Commission, the execution, delivery and performance
by Soluble of this Agreement does not require any consent, approval, authorization or permit of, action by, filing with or notification
to any governmental entity.

 

		(b)	No Conflicts. Neither the execution and delivery of this Agreement, nor the consummation
of the transactions contemplated hereby, nor compliance with the terms hereof, will violate, conflict with or result in a breach
of, or constitute a default under any provision of, any agreement applicable to Soluble or to Soluble’s property or assets.

 

    	 	2	 

     

    

 

		(c)	The Subject Shares. Soluble is the record and beneficial owner of and has good and marketable
title to, the Subject Shares. Soluble has, or will have at the time of any applicable stockholder meeting or consent, the sole
right to vote or direct the vote of, or to dispose of or direct the disposition of, the Subject Shares, and none of the Subject
Shares is subject to any agreement, arrangement or restriction with respect to the voting of the Subject Shares that would prevent
or delay Soluble’s ability to perform its obligations hereunder. There are no agreements or arrangements of any kind, obligating
Soluble to transfer, sell assign or convey or cause to be transferred, sold, assigned or conveyed any of the Subject Shares and
no person, including but not limited to any natural person, firm, individual, partnership, joint venture, business trust, trust,
association, corporation, company, limited liability company, unincorporated entity or governmental authority, has any contractual
or other right or obligation to purchase or otherwise acquire any of the Subject Shares.

 

		(d)	Reliance by Alliqua. Soluble understands and acknowledges that Alliqua is entering into
the Contribution and Merger Agreement in reliance upon Soluble’s execution and delivery of this Agreement.

 

		5.	Termination. This Agreement shall automatically terminate without further action upon the
later of (i) the one (1) year anniversary of the Closing or (ii) the distribution by Soluble of the Subject Shares to its members
(the “Expiration Date”).

 

		6.	Notices. Any notice, request, instruction, consent or other document to be given hereunder
by any Party to another Party must be in writing and delivered in accordance with Section 12.02 of the Contribution and Merger
Agreement.

 

		7.	Specific Performance. Soluble acknowledges and agrees that (a) the covenants, obligations
and agreements contained in this Agreement relate to special, unique and extraordinary matters, (b) Alliqua is relying on such
covenants in connection with entering into the Contribution and Merger Agreement and (c) a violation of any of the terms of such
covenants, obligations or agreements will cause Alliqua irreparable injury for which adequate remedies are not available at law
and for which monetary damages are not readily ascertainable. Therefore, Soluble agrees that Alliqua shall be entitled to an injunction,
restraining order or such other equitable relief (without the requirement to post bond) as a court of competent jurisdiction may
deem necessary or appropriate to restrain Soluble from committing any violation of such covenants, obligations or agreements. These
injunctive remedies are cumulative.

 

		8.	Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware, without giving effect to any choice or conflict of law provision or rule that would cause
the application of the laws of any jurisdiction other than the State of Delaware. In addition, each of the parties hereto irrevocably
agrees that any legal action or proceeding with respect to this Agreement and the rights and obligations arising hereunder, shall
be brought and determined exclusively in the Delaware Court of Chancery and any state appellate court therefrom within the State
of Delaware.

 

		9.	Amendment, Waivers, etc. Neither this Agreement nor any term hereof may be amended or otherwise
modified other than by an instrument in writing signed by the Parties. No provision of this Agreement may be waived, discharged
or terminated other than by an instrument in writing signed by the party against whom the enforcement of such waiver, discharge
or termination is sought.

 

    	 	3	 

     

    

 

		10.	Assignment.  Neither Party to this Agreement may assign its rights or delegate
its obligations hereunder without the prior written consent of the other Party. Any such attempted assignment shall be null and
void ab initio.

 

		11.	Section Headings.  The headings contained in this Agreement are for reference
purposes only and will not affect in any way the meaning or interpretation of this Agreement.

 

		12.	Forbearance; Waiver.  Forbearance or failure to pursue any legal or equitable
remedy or right available to a party upon default under, or upon a breach of, this Agreement shall not constitute waiver of such
right, nor shall any such forbearance, failure or actual waiver imply or constitute waiver of a subsequent default or breach.

 

		13.	Legal Fees and Expenses.  The prevailing party in any legal proceeding
based upon this Agreement shall be entitled to reasonable attorney’s fees and court costs, in addition to any other recoveries
allowed by law.

 

		14.	Time of Essence. With regard to all dates and time periods set forth or referred to in this
Agreement, time is of the essence.

 

		15.	Counterparts. This Agreement may be executed in any number of counterparts, each such counterpart
being deemed to be an original instrument, and all such counterparts shall together constitute the same agreement.

 

[Remainder of
page intentionally left blank. Signature page to follow.]

 

    	 	4	 

     

    

 

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

        

	 	SOLUBLE SYSTEMS, LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	ALLIQUA BIOMEDICAL, INC.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

 

Signature Page to Voting Agreement 

 

     

     

    

 

Exhibit A

 

IRREVOCABLE PROXY
TO VOTE STOCK OF ALLIQUA BIOMEDICAL, INC.

 

		1.	The undersigned stockholder of Alliqua BioMedical, Inc., a Delaware corporation (the “Company”),
hereby irrevocably (to the full extent permitted by the General Corporation Law of the State of Delaware (the “DGCL”))
appoints the chief executive officer and chief financial officer of the Company, and each of them, as the sole and exclusive proxies
of the undersigned, with full power of substitution and resubstitution, to vote and exercise all voting and related rights (to
the full extent that the undersigned is entitled to do so) with respect to the Subject Shares (as defined in the Voting Agreement,
dated as of ____________, 2016 (the “Voting Agreement”)), by and among the Company and the undersigned in accordance
with the terms of this Proxy. Upon the undersigned’s execution of this Proxy, any and all prior proxies given by the undersigned
with respect to any Subject Shares are hereby revoked and the undersigned agrees not to grant any subsequent proxies with respect
to the Subject Shares until the termination of the Voting Agreement.

 

		2.	This Proxy is coupled with an interest, is irrevocable (to the extent permitted by the DGCL), is
granted pursuant to the Voting Agreement and is granted in exchange for valid consideration.

 

		3.	The proxies named above, and each of them, are hereby authorized and empowered by the undersigned,
at any time prior to the termination of the Voting Agreement, to act as the undersigned’s proxy to vote the Subject Shares,
and to exercise all voting rights of the undersigned with respect to the Subject Shares (including, without limitation, the power
to execute and deliver written consents pursuant to the DGCL), at every annual, special, adjourned or postponed meeting of the
shareholders of the Company and in every written consent in lieu of such meeting in the manner provided in the Voting Agreement.

 

		4.	All capitalized terms used but not defined herein shall have the meanings set forth in the Voting
Agreement.

 

		5.	This Proxy shall automatically terminate and be of no further force and effect upon the termination
of the Voting Agreement.

 

		6.	Any obligation of the undersigned hereunder shall be binding upon the successors and assigns of
the undersigned.

 

 

(Remainder of page
intentionally left blank. Signature page to follow.)

 

     

     

    

 

[SIGNATURE PAGE
TO IRREVOCABLE PROXY]

 

	 	SOLUBLE SYSTEMS, LLC
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	Dated: _______________, 2016

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