Document:

Exhibit 10.1

 

FORBEARANCE AND AMENDMENT
AGREEMENT

 

This FORBEARANCE AND AMENDMENT AGREEMENT,
dated as of February 5, 2018 (this “Agreement”), is made by and among ALLIQUA BIOMEDICAL, INC., a Delaware
corporation (the “Borrower”), AQUAMED
TECHNOLOGIES, INC., a Delaware corporation (the “Guarantor”; the Borrower and the Guarantor are
each also referred to herein individually as a “Loan Party” and collectively as the “Loan
Parties”) and PERCEPTIVE CREDIT HOLDINGS, LP, a Delaware limited partnership (the “Lender”).
Unless otherwise defined herein or the context otherwise requires, terms used in this Agreement, including its preamble and recitals,
have the meanings provided in the Credit Agreement (defined below).

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Guarantor and
the Lender are parties to that certain Credit Agreement and Guaranty, dated as of May 29, 2015 (as amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”); and

 

WHEREAS, the Borrower has requested the
Lender to enter into certain amendments to the Credit Agreement and the Lender is willing to agree to such amendments, subject
to the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration of the
mutual agreements, provisions and covenants contained herein, the parties agree as follows:

 

Article
I

FORBEARANCE, ETC.

 

		SECTION	1.1.      Forbearance,
etc.

 

(a)              
The Borrower acknowledges and agrees that a Default has occurred and is continuing as a result of the Borrower’s failure
to comply with (i) Section 8.4(a) of the Credit Agreement as of the date hereof and (ii) Section 8.4(b) of the Credit Agreement
as of each of (1) September 30, 2016, (2) December 31, 2016, (3) March 31, 2017, (4) June 30, 2017, (5) September 30, 2017, and
(6) December 31, 2017 (such Defaults being herein referred to as the “Specified Defaults”). The Lender
hereby agrees that, with respect to the Specified Defaults (but only the Specified Defaults), it will refrain and forebear from
exercising or pursuing any rights or remedies under the Credit Agreement or otherwise (including imposing a default rate of interest
in respect of the Specified Defaults pursuant to Section 3.6 of the Credit Agreement) or any other Loan Document until (but only
until) the Termination Date. Any term or provision hereof to the contrary notwithstanding, the Lender is not waiving any of its
rights or remedies with respect to the Specified Defaults or any other Default, but instead is simply agreeing not to take remedial
action with respect to the Specified Defaults until the Termination Date.

 

(b)              
The “Termination Date” means the earlier of (i) April 30, 2018, (ii) the date when the Lender
becomes aware that any other Default (other than any Specified Default) has occurred and is continuing, and (iii) the Purchase
Agreement Termination Date (as defined below). Upon the occurrence of the Termination Date, the Lender may, with respect to any
or all of the Specified Defaults, pursue any rights and remedies available to it under the Credit Agreement or any other Loan Document,
or pursuant to law or otherwise, with respect to any Defaults that have then occurred and are outstanding (including the Specified
Defaults), including, but not limited to, declaring all or any portion of the outstanding principal amount of the Loan and other
Obligations to be immediately due and payable, imposing a default rate of interest in respect of the Obligations in accordance
with Section 3.6 of the Credit Agreement, or pursuing any or all other rights and remedies of the Lender as a secured party under
the UCC, the Pledge and Security Agreement or any other Loan Document.

 

     

     

    

 

(c)              
Notwithstanding any provision of this Agreement or any Loan Document to the contrary, each Loan Party hereby acknowledges
and agrees that, due to the occurrence and ongoing continuance of the Specified Defaults, the re-investment option set forth in
Section 3.4 of the Credit Agreement is not available to any Loan Party, and no Loan Party may re-invest or use any Net Cash Proceeds
of any Disposition or Event of Loss as would otherwise be permitted under Section 3.4 of the Credit Agreement if no Default or
Event of Default had occurred and was continuing.

 

 

Article
II

AMENDMENTS TO CREDIT AGREEMENT

 

The provisions of the Credit Agreement referred
to below are hereby amended in accordance with this Article II.  Except as expressly so amended, the parties hereto
expressly acknowledge and agree that all other terms and provisions of the Credit Agreement and each other Loan Document shall
continue in full force and effect without amendment or other modification of any type.

 

SECTION 2.1.     
Amendment to Section 3.2(a). Upon the occurrence and effective on the Agreement Effective Date, Section 3.2(a) of
the Credit Agreement shall be amended and restated in its entirety as follows:

 

(a)          On the last Business Day of each calendar month commencing on the earlier of (i) April 30, 2018 and (ii) the date of termination
of the Asset Purchase Agreement, dated as of January 5, 2018, between the Borrower and Celularity Inc. (the “Purchase
Agreement Termination Date”), the Borrower shall make a scheduled principal payment on the Loan of $225,000, with
any remaining unpaid balance of the Loan being payable in cash on the Maturity Date.

 

Article
III

conditions precedent

 

This Agreement shall become effective upon,
and shall be subject to, the prior or simultaneous satisfaction of each of the following conditions in a manner reasonably satisfactory
to the Lender (the date when all such conditions are so satisfied being the “Agreement Effective Date”).

 

SECTION 3.1.     
Counterparts. The Lender shall have received counterparts of this Agreement executed on behalf of the Borrowers, the
Guarantor, and the Lender.

 

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SECTION 3.2.     
Effective Date Certificate. The Lender shall have received a certificate, dated as of the Agreement Effective Date
and duly executed and delivered by an Authorized Officer of the Borrower and each Guarantor certifying as to the matters set forth
in Articles IV and V hereof, in form and substance satisfactory to the Lender.

 

SECTION 3.3.     
Costs and Expenses, etc. The Lender shall have received all fees, costs and expenses due and payable pursuant to
Section 11.3 of the Credit Agreement (including without limitation the reasonable fees and expenses of Morrison & Foerster
LLP, counsel to the Lender), if then invoiced, together with any other fees separately agreed to by the Borrower and the Lender,
such fees, costs and expenses.

 

SECTION 3.4.     
Satisfactory Legal Form, etc. All legal matters incident to the effectiveness of this Agreement shall be reasonably
satisfactory to the Lender and its counsel.

 

Article
IV

Representations and Warranties

 

To induce the Lender to enter into this
Agreement, each Loan Party represents and warrants to the Lender as set forth below.

 

SECTION 4.1.     
Validity, etc. This Agreement and the Credit Agreement (after giving effect to this Agreement) each constitutes the
legal, valid and binding obligation of each Loan Party, enforceable in accordance with its respective terms, subject to the effects
of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’
rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant
of good faith and fair dealing.

 

SECTION 4.2.     
Representations and Warranties, etc. Immediately prior to, and immediately after giving effect to, this Agreement
the following statements shall be true and correct:

 

(a)     
the representations and warranties set forth in each Loan Document (as defined in the Credit Agreement) shall, in each case,
be, in the case of representations and warranties qualified as to knowledge, materiality, Material Adverse Effect (as defined in
the Credit Agreement) or any similar qualification, true and correct in all respects, and, in the case of those representations
and warranties that are not so qualified, in all material respects, with the same effect as if then made (unless stated to relate
solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects
as of such earlier date); and

 

(b)     
no Default (other than the Specified Defaults) shall have then occurred and be continuing.

 

Article
V

Confirmation

 

SECTION 5.1.     
Reaffirmation. Each Loan Party hereby consents to this Agreement and hereby agrees that, after giving effect to this
Agreement, each Loan Document to which it is a party, and all Obligations thereunder (including the guarantees made pursuant to
Article X of the Credit Agreement), are and shall continue to be in full force and effect and the same are hereby ratified in all
respects.

 

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SECTION 5.2.     
Validity, etc. Each Loan Party hereby represents and warrants, as of the Agreement Effective Date, that immediately
after giving effect to this Agreement, each Loan Document, in each case as modified by this Agreement (where applicable and whether
directly or indirectly), to which it is a party continues to be a legal, valid and binding obligation of such Loan Party, enforceable
against such Person in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether
considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing.

 

Article
VI

Miscellaneous

 

SECTION 6.1.     
No Waiver. The Lender’s agreement not to pursue its rights and remedies until the occurrence of the Termination
Date as described in Section 1.1 herein is temporary and limited in nature. Except as expressly provided herein, (i) nothing
contained herein shall be deemed to constitute a waiver of the Specified Defaults or any other Default or Event of Default or compliance
with any term or condition contained in the Credit Agreement or any of the other Loan Documents or constitute a course of conduct
or dealing among the parties and (ii) the Lender reserves all rights, privileges and remedies under the Credit Agreement and the
other Loan Documents.

 

SECTION 6.2.     
Severability. In case any provision of or obligation under this Agreement shall be invalid, illegal or unenforceable
in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision
or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

SECTION 6.3.     
Integration. This Agreement, together with the other Loan Documents, incorporates all negotiations of the parties
hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to
the subject matter hereof.

 

SECTION 6.4.     
Cross-References; Headings. References in this Agreement to any Article or Section are, unless otherwise specified,
to such Article or Section of this Agreement. Headings and captions used in this Agreement are included for convenience of reference
only and shall not be given any substantive effect.

 

SECTION 6.5.     
Loan Document Pursuant to Credit Agreement. This Agreement is a Loan Document executed pursuant to the Credit Agreement
and shall (unless otherwise expressly indicated therein) be construed, administered and applied in accordance with all of the terms
and provisions of the Credit Agreement, including Article XI thereof and all rules of interpretation set forth in Article I thereof.

 

SECTION 6.6.     
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

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SECTION 6.7.     
Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute
one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart.  Delivery
of an executed counterpart of a signature page to this Agreement by facsimile (or other electronic transmission) shall be effective
as delivery of a manually executed counterpart of this Agreement.

 

SECTION 6.8.     
Governing Law. This AGREEMENT shall be governed by, and construed in accordance
with, the internal laws of the State of New York without regard to principles of conflicts of laws that would result in the application
of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law shall apply.

 

SECTION 6.9.     
Full Force and Effect. The Loan Parties each jointly and severally agree that all of the representations, warranties,
terms, covenants, conditions and other provisions of the Credit Agreement and the other Loan Documents shall remain unmodified
and shall continue to be, and shall remain, in full force and effect in all respects. 

 

[Signature pages to follow]

 

 

 

 

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IN WITNESS WHEREOF, the parties hereto have
caused this Agreement to be duly executed and delivered as of the day and year first above written.

  

	 	BORROWER:
	 	 
	 	 
	 	ALLIQUA BIOMEDICAL, INC.,
	 	 
	 	By:  /s/ Brian M. Posner                  
	 	Name: Brian M. Posner
	 	Title:   CFO
	 	 
	 	 
	 	GUARANTOR:
	 	 
	 	 
	 	AQUAMED TECHNOLOGIES, INC.,
	 	 
	 	By:  /s/ Brian M. Posner                  
	 	Name: Brian M. Posner
	 	Title:   CFO

  

 

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LENDER:

 

PERCEPTIVE CREDIT HOLDINGS, LP

 

By Perceptive Credit Opportunities GP, LLC,

its general partner

 

By:  /s/ Sandeep Dixit                                  

Name: Sandeep Dixit

Title:   Chief Credit Officer

 

By:  /s/ Sam Chawla                                    

Name: Sam Chawla

Title:   Portfolio Manager

 

    A-7Exhibit 10.1

 

AMENDMENT #2 TO WARRANT AGREEMENT

 

ONCOBIOLOGICS, INC.

 

AND

 

AMERICAN STOCK TRANSFER & TRUST COMPANY,
LLC, AS WARRANT AGENT

 

THIS AMENDMENT #2,
dated February 9, 2018 (“Amendment #2”), to the Warrant Agreement, dated as of May 18, 2016, as amended
by that certain amendment dated February 6, 2017 (the “Warrant Agreement”), by and between Oncobiologics,
Inc., a Delaware corporation (the “Company”), and American Stock Transfer & Trust Company, LLC, a
New York limited liability trust company, as Warrant Agent (the “Warrant Agent”).

 

WHEREAS, the Company
and the Warrant Agent entered into that certain Warrant Agreement relating to, among other things, the issuance of Series A warrants
to purchase shares of the Company’s common stock at an exercise price of $6.60 per share (the “Series A Warrants”);
and

 

WHEREAS, pursuant to
Section 8.9 of the Warrant Agreement, the Company and the Warrant Agent have agreed to further amend the Warrant Agreement to further
extend the period for exercising the Warrants from February 18, 2018 to February 18, 2019.

 

NOW, THEREFORE, in
consideration of the mutual agreements herein contained, the Company and the Warrant Agent agree as follows:

 

		1.	Amendments.

 

		a.	Section 3.3.1 of the Warrant Agreement is amended and
restated as follows:

 

	 	“3.3.1 	
        Series A Warrants. Each
Series A Warrant may be exercised, in whole or in part, at any time during the period commencing on the Detachment Date and ending
at 5:00pm New York City time on the earlier to occur of (a) the date that is twenty (20) business days after the date on which
the Closing Sales Price of the Common Stock is greater than or equal to $7.25 per share and (b) February 18, 2019.”

 

		b.	The first sentence of Section 3.3.3 of the Warrant
Agreement is amended and restated as follows:

 

“For purposes of this
Agreement, the term “Expiration Date” means the earlier to occur of (a) the date that is twenty (20) business days
after the date on which the Closing Sales Price of the Common Stock is greater than or equal to $7.25 per share and (b) February
18, 2019 with respect to the Series A Warrants; and May 18, 2018 with respect to the Series B Warrants; and the term “Exercise
Period” means the period during which the Series A Warrant or Series B Warrant, as the case may be, is exercisable, as described
in subsection 3.1, 3.3.1 or 3.3.2 hereof.”

 

		2.	Counterparts. This Amendment may be executed in
any number of original or facsimile counterparts and each of such counterparts shall for all purposes be deemed to be an original,
and all such counterparts shall together constitute but one and the same instrument.

 

[Signature page follows]

 

     

     

    

 

IN WITNESS WHEREOF, the parties hereto have
caused this Amendment #2 to be duly executed as of the date first above written.

 

	 	COMPANY:
	 	 
	 	Oncobiologics, Inc.
	 	 	 
	 	By:	/s/ Lawrence A. Kenyon
	 	 	Name:	Lawrence A. Kenyon
	 	 	Title:	Chief Financial Officer
	 	 
	 	WARRANT AGENT:
	 	 
	 	American Stock Transfer & Trust Company, LLC
	 	 	 
	 	By:	/s/ Jennifer Donovan
	 	 	Name:	Jennifer Donovan
	 	 	Title:	Senior Vice President

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