Document:

Exhibit 10.1

 

EXECUTION VERSION

 

CONSENT, FORBEARANCE AND
AMENDMENT AGREEMENT

 

This CONSENT, FORBEARANCE AND AMENDMENT
AGREEMENT, dated as of August 31, 2017 (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, L.P., 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).

 

WITNESSETH:

 

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”);

 

WHEREAS, the Borrower proposes to Dispose
of the Disposed Assets (as defined in Exhibit A hereto) pursuant to the Asset Purchase Agreement dated as of August
31, 2017 between the Borrower and Argentum Medical, LLC (the “Purchaser”; such Asset Purchase Agreement,
the “Purchase Agreement”; and such proposed Disposition, the “Proposed Disposition”);

 

WHEREAS, the Net Cash Proceeds to be received
by the Borrower upon Disposition of the Disposed Assets will not be less than $3,300,000;

 

WHEREAS, the Proposed Disposition is currently
prohibited by Section 8.9 of the Credit Agreement; and

 

WHEREAS, the Borrower has requested that
the Lender provide its consent to the Proposed Disposition and, subject to the terms and provisions hereof, the Lender is willing
to provide such consent.

 

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

 

Article
I

definitions

 

SECTION 1.1.          Certain
Terms. The following terms (whether or not highlighted in bold and/or italics) when used in this Agreement, including its preamble,
recitals and exhibits, shall have the following meanings (such definitions to be equally applicable to the singular and plural
forms thereof):

 

“Action” is
defined in Exhibit A.

 

“Agreement” is
defined in the preamble.

 

     

     

    

  

“Agreement Effective Date”
is defined in Article V.

 

“Borrower” is
defined in the preamble. 

 

“Business”
is defined in Exhibit A.

 

“Cash” is
defined in Exhibit A.

 

“Contract”
is defined in Exhibit A.

 

“Credit Agreement”
is defined in first recital.

 

“Disposed Assets”
is defined in Exhibit A.

 

“Excluded Assets”
is defined in Exhibit A.

 

“Governmental Authority”
is defined in Exhibit A.

 

“Guarantor” is
defined in the preamble.

 

“Healthcare Laws”
is defined in Exhibit A.

 

“HIPAA” is
defined in Exhibit A.

 

“Intellectual Property”
is defined in Exhibit A.

 

“Law” is
defined in Exhibit A.

 

“Lender” is defined
in the preamble.

 

“Loan Party”
is defined in the preamble.

 

“Order” is
defined in Exhibit A.

 

“Proposed Disposition”
is defined in the second recital.

 

“Purchase Agreement”
is defined in the second recital.

 

“Purchaser”
is defined in the second recital.

 

“Specified Defaults”
is defined in Section 3.1(a).

 

“Tax” is
defined in Exhibit A.

 

“Tax Return”
is defined in Exhibit A.

 

“Termination Date”
is defined in Section 3.1(b).

 

    	 	2	 

     

    

  

Article
II

CONSENT, ETC.

 

SECTION 2.1.          Consent.
Notwithstanding the prohibition of the Proposed Disposition under Section 8.9 of the Credit Agreement and the terms and provisions
of Sections 3.2(c) and 3.4 of the Credit Agreement, the Lender hereby consents to the Borrower’s Proposed Disposition; provided
that simultaneously with the closing of the Proposed Disposition, an amount equal to $1,650,000 shall be paid directly to the Lender
on the Closing Date (as defined in the Purchase Agreement) and applied as follows:

 

(a)          $1,617,647
shall be used to prepay a portion of the outstanding principal amount of the Loan, pursuant to Section 3.2(b) of the Credit Agreement;

 

(b)          $32,353
shall be used to pay the Early Prepayment Fee in connection with the amount prepaid in clause (a) above, pursuant to Section
3.2(h) of the Credit Agreement;

 

provided, further, that the balance
of the Net Cash Proceeds from such Disposition after the application of clauses (a) and (b) above will be
applied as set forth in Section 3.4 of the Credit Agreement. Notwithstanding Section 3.7(b) of the Credit Agreement, Interest accrued
on the Loan, including Interest accrued as of the Closing Date (as defined in the Purchase Agreement) on the principal amount to
be prepaid pursuant to this Agreement, shall be payable in cash on the last day of the Interest Period ending on August 31, 2017
pursuant to Section 3.7(c) of the Credit Agreement.

 

SECTION 2.2.          Payment
Instructions. On the Closing Date (as defined in the Purchase Agreement) the amounts described in Sections 2.1(a) and
(b) hereof shall be paid to the Lender by wire transfer of immediately available funds to the following account of the Lender:

 

Bank: Bank of America, N.A. NY

ABA: 026-009-593 or SWIFT: BOFAUS3N

A/C Name: Merrill Lynch Professional Clearing Corp., New York, NY

A/C: 6550213525

FFC: Perceptive Credit Holdings, LP

A/C: 143-36315-D4

 

SECTION 2.3.          Release
of Liens. Following the Lender’s receipt of the amounts described in Sections 2.1(a) and (b)
hereof in immediately available funds on the Closing Date (as defined in the Purchase Agreement) as described in Section 2.2
hereof, (i) the Lender’s Liens and security interests on the Disposed Assets are and shall be deemed to have automatically
and unconditionally be released and terminated and (ii) the Lender shall take such actions reasonably requested by the Borrower
to release the Liens on the Disposed Assets, including the filing of UCC-3 termination statements and intellectual property releases
to be filed with the U.S. Patent and Trademark Office and U.S. Copyright Office, and other releases, terminations and satisfactions
of Lender’s Liens and security interests with respect to such Disposed Assets, in each case at the sole cost and expense
of the Borrower (including attorneys’ fees and expenses).

 

    	 	3	 

     

    

  

Article
III

FORBEARANCE, ETC.

 

SECTION 3.1.          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 (w) September 30, 2016, (x) December 31, 2016, (y) March 31, 2017 and (z) June 30, 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) October 13, 2017 and (ii) the date when the Lender becomes
aware that any other Default (other than any Specified Default) has occurred and is continuing. 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; provided that the re-investment option set forth in Section 3.4 of the Credit Agreement shall be available
to the Loan Parties for re-investing the Net Cash Proceeds from the Proposed Disposition in excess of $1,650,000 after the Lender
has received payment of the amounts described in Section 2.1 hereof.

 

    	 	4	 

     

    

 

Article
IV

AMENDMENTS TO CREDIT AGREEMENT

 

The provisions of the Credit Agreement referred
to below are hereby amended in accordance with this Article IV.  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 4.1.          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 January 31, 2018, 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
V

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

 

SECTION 5.2.          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
VI and VII hereof, in form and substance satisfactory to the Lender.

 

SECTION 5.3.          Purchase
Agreement. (a) The Purchase Agreement shall be in form and substance reasonably satisfactory to the Lender and (b) the Borrower
and the Lender shall have entered into such Purchase Agreement.

 

SECTION 5.4.          Consummation
of Proposed Disposition. The Proposed Disposition shall have been consummated in accordance with the terms of the Purchase
Agreement and all applicable laws, rules and regulations, without any amendment or waiver that is materially adverse to the interests
of the Lender.

 

SECTION 5.5.          Receipt
of Net Cash Proceeds. The Lender shall have received on the Closing Date (as defined in the Purchase Agreement) a portion of
the Net Cash Proceeds equal to $1,650,000 resulting from the Proposed Disposition as described in Sections 4.1 and 4.2
hereof.

 

    	 	5	 

     

    

  

SECTION 5.6.          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; provided, however, that the Borrower shall be not be required to reimburse the Lender for fees and expenses of Morrison
& Foerster LLP in excess of $8,000.

 

SECTION 5.7.          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
VI

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 6.1.          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 6.2.          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
VII

Confirmation

 

SECTION 7.1.          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.

 

    	 	6	 

     

    

  

SECTION 7.2.          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
VIII

Miscellaneous

 

SECTION 8.1.          No
Waiver. The Lender’s agreement not to pursue its rights and remedies until the occurrence of the Termination Date as
described in Section 3.1 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 8.2.          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 8.3.          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 8.4.          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 8.5.          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 8.6.          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.

 

    	 	7	 

     

    

 

SECTION 8.7.          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 8.8.          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 8.9.          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]

 

    	 	8	 

     

    

 

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 Posner
	 	Name: Brian Posner
	 	Title: CFO
	 	 
	 	GUARANTOR:
	 	 
	 	AQUAMED TECHNOLOGIES, INC.,
	 	 
	 	By:	 /s/ Brian Posner
	 	Name: Brian Poser
	 	Title: CFO

 

    	 	9	 

     

    

 

	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	 

 

 

    	 	10	 

     

    

 

Exhibit A

to Consent, Forbearance and Amendment
Agreement

 

EXHIBIT A

DEFINITION OF “DISPOSED ASSETS”
AND RELATED DEFINITIONS

 

1. “Disposed Assets” means all of
the assets owned, leased or licensed by or to the Borrower (wherever located) that are primarily used in, or primarily related
to, the Business, except for the Excluded Assets. The Disposed Assets include all of the Borrower’s right, title and interest
in and to the following that are used in, or related to, the Business:

 

(a)          Assumed
Contracts. All Contracts set forth on Schedule 1.1(a) hereto (collectively, the “Assumed Contracts”);

 

(b)          Inventories.
All products, parts, supplies, materials and other inventories (wherever located), as of the Closing Date (as defined in the Purchase
Agreement) and to the extent primarily relating to the Business, including all raw materials, work in process and finished goods
inventories, and specifically including those items described on Schedule 1.1(b) hereto (the “Inventories”);

 

(c)          Books
and Records. Those books and records primarily related to the Disposed Assets set forth on Schedule 1.1(c) hereto (the
“Acquired Records”);

 

(d)          Marketing
Materials. All email contact lists and any other marketing data and other information related to the Business;

 

(e)          Intellectual
Property. All worldwide right, title and interest in the names “TheraBond”, “TheraBond 3D”, “SilverTrak”,
“SilverTrak Technology”, “TheraBond Antimicrobial Barrier Systems”, “TheraBond 3D Antimicrobial Barrier
Systems”, “Choice Therapeutics”, “Choice Source Therapeutics” or any derivation thereof, the logos
primarily relating to such names and the other Intellectual Property described on Schedule 1.1(e) hereto (the “Business
Intellectual Property”);

 

(f)          Permits.
All registrations, licenses, permits, registrations, certifications, variances, waivers, interim permits, permit applications,
approvals or other authorizations under any Law (the “Permits”), including without limitation, pre-market approvals,
clearances, marketing authorizations or other approvals issued or obtained under any Healthcare Laws (the “Healthcare
Permits”), obtained by the Borrower or any Professional that are exclusively used in, or exclusively related to, the
Business;

 

(g)          Causes
of Action. All rights, claims or causes of action of the Borrower against third parties in respect of any of the Disposed Assets
described in clauses (a) through (f) above; provided, however, that such claims or rights shall not
include any claims, causes of action, defenses and rights of offset or counterclaim relating to the Excluded Assets; and

 

(h)          Other
Assets. All other assets not specifically enumerated in this definition of “Disposed Assets” but otherwise solely
and primarily related to the operation of the Business.

 

     

     

    

  

2. “Action” means any (a) Order, suit,
litigation, proceeding, hearing, arbitration, action, settlement agreement, corporate integrity agreement or audit or (b) claim,
charge, complaint, demand, investigation or dispute.

 

3. “Business” means the silver-based,
antimicrobial business and TheraBond and TheraBond 3D product lines of the Borrower.

 

4. “Cash” means for the Borrower,
as of any date of determination, the aggregate amount of unencumbered cash of the Borrower.

 

5. “Contract” means any contract,
lease, commitment, sales order, purchase order, agreement, indenture, mortgage, note, bond, instrument, plan or license.

 

6. “Excluded Assets” means the following
assets retained by the Borrower that are not being sold or assigned to the Purchaser under the Purchase Agreement:

 

(a)          Excluded
Contracts. All Contracts to which the Borrower is a party or by which the Borrower is bound (other than the Assumed Contracts);

 

(b)          Cash.
All Cash, bank accounts and lockboxes;

 

(c)          Records.
Other than the Acquired Records, all records and other protected business information of the Borrower;

 

(d)          Insurance
Policies. All insurance policies of the Borrower and prepaid expenses associated therewith;

 

(e)          Corporate
Records. The Borrower’s certificate of incorporation, qualifications to conduct business as a foreign corporation, arrangements
with registered agents relating to foreign qualifications, taxpayer and other identification numbers, seals, minute books, stock
transfer books, blank stock certificates, all of the Borrower’s Tax Returns and books and records relating to the Borrower’s
Tax Returns or otherwise relating to Tax matters of the Borrower, for all periods and other documents relating to the organization,
maintenance, and existence of the Borrower as a corporation;

 

(f)          Rights
Under Agreement. Any of the rights of the Borrower under the Purchase Agreement (or under any other agreement between the Borrower
on the one hand and the Purchaser on the other hand entered into on or after the date of the Purchase Agreement);

 

(g)          Tax
Refunds. All rights and interest in any refund of Taxes to the extent such refund of Taxes is for the benefit of the Borrower;

 

(h)          Accounts
Receivable. All accounts receivable, trade receivable, notes receivable and other receivables of the Borrower;

 

    	 	A-2	 

     

    

  

(i)          Real
Property. All of the Borrower’s right, title and interest in and to any owned real property and any leased real property;

 

(j)          Vehicles.
All lift trucks, boom trucks, tractors, delivery trucks and other trucks, trailers automobiles and other vehicles to the extent
related to the Business.

 

(k)          Deposits
and Prepaid Items. All deposits and advances, prepaid expenses and other prepaid items of the Borrower, but not including any
prepaid Taxes; and

 

(l)          Other
Excluded Assets. All of the Borrower’s right, title and interest in and to all of its other assets (except for the Disposed
Assets).

 

7. “Governmental Authority” means
the government of the United States or any foreign country or any state or political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government entities established to
perform such functions.

 

8. “Healthcare Laws” means mean any
and all applicable Laws, Actions, and Orders relating to the regulation of the health care industry, including to the extent applicable
any of the following: (a) Title XVIII of the Social Security Act, 42 U.S.C. §§ 1395-1395hhh (the Medicare statute) (b)
any joint federal or state health care or health insurance program, including, Title XIX of the Social Security Act, 42 U.S.C.
§§ 1396-1396v (the Medicaid statute); (c) TRICARE, 10 U.S.C. § 1071 et seq.; (d) the Ethics in Patient Referrals
Act or “STARK” law, as amended, 42 U.S.C. § 1395nn, (e) the Federal Health Care Program Anti-Kickback Statute
(42 U.S.C. § 1320a-7b(b)), (f) the Federal False Claims Act (31 U.S.C. §§ 3729-3733), (g) the Federal Program Fraud
Civil Remedies Act (31 U.S.C. §§ 3801-3812), (h) the Federal Anti-Kickback Act of 1986 (41 U.S.C. §§ 51-58),
(i) the Federal Civil Monetary Penalties Law (42 U.S.C. §§ 1320a-7a and 1320a-7b), (j) the Exclusion Laws (42 U.S.C.
§ 1320a-7), (k) the Physician Payments Sunshine Act (42 U.S.C. § 1320a-7h) and any similar state laws and regulations;
(l) HIPAA and similar applicable federal and state laws; (m) the Patient Protection and Affordable Care Act (Pub. L. 11-148), as
amended by the Health Care and Education Reconciliation Act of 2010 (Pub. L. 11-152); (n) United States Federal Food, Drug and
Cosmetic Act, 21 U.S.C. § 301 et seq., and the applicable regulations promulgated thereunder; (o) the Federal Trade Commission
Act, 15 U.S.C. § 41 et seq. and the rules, regulations and directives promulgated thereunder; (p) any other state or federal
law, rule or regulation issued by any Governmental Authority which regulates kickbacks, fee-splitting, patient or program charges,
claims submissions, reimbursement, recordkeeping, referrals, the hiring of employees or acquisition of services or supplies from
those who have been excluded or debarred from government health care programs, quality, safety, privacy, security, licensure or
any other aspect of providing health care; and (q) any state, local, international, or foreign equivalents to any of the foregoing.

 

9. “HIPAA” means the Health Insurance
Portability and Accountability Act of 1996, the Health Information Technology for Economic and Clinical Health Act of the American
Recovery and Reinvestment Act of 2009, and their implementing regulations.

 

    	 	A-3	 

     

    

 

10. “Intellectual Property” means
all worldwide (a) trade names, trademarks, service marks, certification marks, trade dress, Internet domain names and social media
accounts, all applications and registrations for any of the foregoing, all renewals and extensions thereof and all goodwill of
the Business associated with any of the foregoing (“Trademarks”); (b) patents, utility models and industrial
design registrations and applications for any of the foregoing, including all provisionals, continuations, continuations-in-part,
divisionals, reissues, reexaminations, extensions and renewals; (c) works of authorship and copyrights, including software and
databases, all applications and registrations for the foregoing, all renewals and extensions thereof and all moral rights associated
with any of the foregoing; (d) trade secrets and proprietary information, including confidential and proprietary information and
know-how, inventions (whether or not patentable), invention disclosures, algorithms, designs, drawings, prototypes, business methods,
processes, discoveries, ideas, formulae, manufacturing techniques, specifications, and engineering data, (e) all moral and economic
rights of authors or inventors, however denominated, (f) any similar or equivalent rights to any of the foregoing throughout the
world, (g) all copies and tangible embodiments of any of the foregoing (in whatever form or medium), and (h) all rights to sue
and recover damages for past, present and future infringement, misappropriation or other violations of any of the foregoing.

 

11. “Law” means any law, statute,
regulation, ordinance, rule, rule of common law, order, decree, judgment, consent decree, settlement agreement or governmental
requirement enacted, promulgated, entered into, agreed or imposed by any Governmental Authority, including state, federal and foreign
criminal and civil laws and/or related regulations.

 

12. “Order” means any judgment, order,
direction, decree, stipulation, injunction, writ, charge or other restriction of any Governmental Authority.

 

13. “Tax” means any federal, state,
local, or foreign taxes, charges, fees, duties, levies, or other assessments, including gross income, net income, gross receipts,
net receipts, capital gains, gross proceeds, net proceeds, ad valorem, profits, license, payroll, employment, excise, severance,
stamp, lease, occupation, equalization, premium, windfall profits, customs duties, capital stock, franchise, profits, withholding,
social security (or similar), unemployment, disability, real property, personal property (whether tangible or intangible), sales,
use, transfer, registration, value added, alternative or add-on minimum, estimated, or other tax, charges or fees of any kind whatsoever,
whether computed on a separate or consolidated, unitary or combined basis or in any other manner, including any interest, penalty,
or addition thereto, whether disputed or not.

 

14. “Tax Return” means any return
(including estimated), declaration, report, claim for refund, or information return or statement relating to Taxes, filed, or to
be filed, with a Governmental Authority, including any schedule or attachment thereto, and including any amendment thereof.

 

    	 	A-4EX-10.1

 Exhibit 10.1 

[Kite Letterhead] 

[Date] 
 [Name] 

[Address] 
 [Address] 

Dear [Name]: 
 This letter agreement
(this “Agreement”) confirms the understanding between you and Kite Pharma, Inc. (the “Company”) regarding certain payment, reimbursement treatment that you may become entitled to receive in connection with the
acquisition (the “Acquisition”) of the Company by Gilead Sciences, Inc., a Delaware corporation (“Parent”), pursuant to that certain Agreement and Plan of Merger, dated as of August 27, 2017, among the Company,
Parent and Purchaser (the “Merger Agreement”). Capitalized terms used but not otherwise defined in this letter have the meanings given to such terms in the Merger Agreement. This Agreement will become effective at the Offer
Acceptance Time. However, if the Merger Agreement terminates pursuant to its terms or your employment with the Company terminates for any reason prior to the Offer Acceptance Time, this letter will terminate and be of no force or effect. 

1. Certain Taxes 
 In the
event that it shall be determined that any payment, award, benefit or distribution (or any acceleration of any payment, award, benefit or distribution) by the Company or any of its affiliated entities (including their respective successors) to or
for your benefit in connection with the Acquisition (determined without regard to any additional payments required under Section 1 of this letter) (the “Payments”) would be subject to the excise tax imposed by Section 4999
of the Internal Revenue Code of 1986, as amended (the “Code”), or any interest or penalties are incurred by you with respect to such excise tax (such excise tax, together with any such interest and penalties, the “Excise
Tax”), then the Company shall pay you an additional payment (which, for this purpose, includes withholding and remittance of taxes by Parent or the Company on your behalf) (a “Reimbursement Payment”) in an amount such that
after payment by you of all taxes (including, without limitation, any income taxes and any interest and penalties imposed with respect thereto, and any excise tax imposed upon the Reimbursement Payment), you retain an amount of the Reimbursement
Payment equal to the Excise Tax imposed upon the Payments. For purposes of determining the amount of the Reimbursement Payment, you shall be deemed to (i) pay federal income taxes at the highest marginal rates of federal income taxation for the
calendar year in which the Reimbursement Payment is to be made and (ii) pay applicable state and local income taxes at the highest marginal rate of taxation for the calendar year in which the Reimbursement Payment is to be made, net of the
maximum reduction in federal income taxes which could be obtained from deduction of such state and local taxes. 

 The Reimbursement Payment with respect to any Payment will be made promptly (and in no event
later than 10 days following such Payment). 
 You and the Company agree that the determinations necessary to be made under the first
paragraph of this Section 1, including whether and when a Reimbursement Payment is required, the amount of such Reimbursement Payment and the assumptions to be utilized in arriving at such determinations, will be based on the most recent
calculations prepared by Compensia, Inc. (“Compensia”) prior to such determination. Compensia shall provide detailed supporting calculations both to you and the Company within 15 business days of the receipt of notice from you or
the Company that there has been a Payment, or such earlier time as is requested by the Company (collectively, the “Determination”). The Determination shall be binding upon you and the Company. 

As a result of the uncertainty in the application of Section 4999 of the Code at the time of the Determination, it is possible that
Reimbursement Payments which will not have been made by the Company should have been made (“Underpayment”), consistent with the calculations required to be made hereunder. In the event the amount of the Reimbursement Payment is less
than the amount necessary to reimburse you for your Excise Tax, Compensia shall determine the amount of the Underpayment that has occurred and any such Underpayment (together with interest at the rate provided in Section 1274(b)(2)(B) of
the Code) shall be promptly paid by the Company to or for the benefit of you. If, after receipt of a Reimbursement Payment, you become entitled to receive any refund with respect to the Excise Tax to which such Reimbursement Payment relates, you
shall promptly pay to the Company the amount of any such refund. 
 2. Other Terms 

The validity, interpretation, construction and performance of this letter shall in all respects be governed by the laws of California, without
reference to principles of conflict of law, and will be binding on any successor to the Company. This letter is intended to comply with the requirements of Section 409A of the Code (to the extent applicable) and shall be interpreted, operated
and administered accordingly. Each payment under this letter will be treated as a separate payment for purposes of Section 409A of the Code. 

3. Counterparts. 

This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together will
constitute one and the same agreement. 
 [Remainder of Page Intentionally Left Blank] 

  
 -2- 

 We thank you for your service and contributions to the success of the Company. 

 

	
	 Sincerely,

	
	  

[Name]

[Title]

  

	
	Acknowledged and agreed on the date first written above:
	
	  

[●]

  
 -3-

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