Document:

Exhibit

EXHIBIT 10.1

 

Strategic Operating Committee Incentive Program

Document Date: September 16, 2013
Approved by the HTBI Board of Directors: September 30, 2013
Reviewed by the Compensation Committee: August 25, 2015 
Reviewed by the Compensation Committee: August 22, 2016 
Reviewed by the Compensation Committee:  August 25, 2017
Reviewed by the Compensation Committee:  September 27, 2017

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EXHIBIT 10.1

HomeTrust Strategic Operating Committee Incentive Program 

Introduction
HomeTrust Bancshares, Inc. (“HomeTrust” or the “Bank”) is committed to rewarding senior executives for their contributions to the Bank’s success. The HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Program (the “Program”) is part of a total compensation package which includes base salary, annual incentives and benefits. The Program is designed to:
		
	▪
	Focus executives on building a strong foundation for success and sustainability over the long term.

		
	▪
	Recognize and reward achievement of the Bank’s annual business goals.

		
	▪
	Focus executives’ attention on key business metrics.

		
	▪
	Motivate and reward superior performance.

		
	▪
	Attract and retain talent needed for the Bank’s success.

		
	▪
	Be competitive with the market.

		
	▪
	Encourage teamwork and collaboration.

		
	▪
	Ensure incentives are appropriately risk-balanced.

		
	▪
	Recognize the accomplishment of key business goals that are critical to long-term success of the organization that are less quantifiable and/or more subjective in nature by utilizing a discretionary component.

Effective Date, Program and Administrator
This Program (formerly called the HomeTrust Strategic Operating Committee Incentive Plan) became effective July 1, 2012, and was amended on September 23, 2013. 
Awards of cash under the Program are issued pursuant to Section 8.1, Cash Awards, of the HomeTrust Bancshares, Inc. 2013 Omnibus Incentive Plan (the “Omnibus Plan”). 
The Program Administrator is the Compensation Committee of the Board of Directors (the “Compensation Committee” or the “Committee"). The Program may be amended from time to time with the approval of the Board of Directors.
Participation and Eligibility
Each year, employees are selected for Program participation:
		
	▪
	CEO participation is determined by the Compensation Committee. 

		
	▪
	The CEO recommends the other executive officers for approval by the Compensation Committee.

		
	▪
	Other participants are added by CEO. 

Participants are subject to meeting the following requirements:
		
	▪
	New hires must be employed prior to April 1st of the Program year to be eligible to participate in the Program for the performance period. Employees hired after that date must wait until the next fiscal year to be eligible for an award under the Program. Eligibility begins the first full month worked. Participants receive a pro-rated award using full months worked during the Program year.

		
	▪
	Awards under the Program shall be limited to individuals employed on a full-time basis by HomeTrust on the date of payment, except in the case of disability, death, or retirement. 

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EXHIBIT 10.1

		
	▪
	Participants on a performance improvement plan or with an unsatisfactory performance rating at the time of payment or who have given notice of resignation at the time of payment are not eligible to receive an award.

Performance Period
The Program operates on a fiscal year schedule — July 1st through June 30th.
Incentive Award Opportunities 
Each participant will have a specified target annual incentive award opportunity, expressed as a percentage of the participant’s base salary. Incentive award opportunities are based on the participant’s job duties and responsibilities and competitive practices.
Award Funding
A funding trigger is established for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended, by the Committee pursuant to the Omnibus Plan utilizing one or more Qualifying Performance Measures (as defined in the Omnibus Plan) set forth in Section 9.2 of the Omnibus Plan. The incentive awards paid are then determined by the Committee using the performance goals selected for the Program Year. In other words, the funded amount is adjusted downwards to reflect actual performance.
Performance Goals and Award Levels 
Program goals will be established using three performance levels:
		
	▪
	Threshold – is the minimum level of performance in which the Bank would consider it reasonable to provide an award. If performance is below Threshold, the payout for that goal is zero. Performance at Threshold results in a payment equal to 50% of the participant’s targeted annual incentive award opportunity. 

		
	▪
	Target – is the level of performance that the Bank considers “good” performance. Goals at this level are challenging but considered reasonably obtainable. Performance at Target results in a payment equal to 100% of the participant’s targeted annual incentive award opportunity. 

		
	▪
	Stretch – is the level of performance the Bank considers outstanding performance. Goals at this level are challenging and considered a best case scenario. Performance at Stretch results in a payment equal to 150% of the participant’s targeted annual incentive award opportunity, which is the highest amount to be paid under the Program. 

Performance between Threshold and Target and Target and Stretch are interpolated to provide for a range of payouts between 50% to 150% of a participant’s targeted annual incentive, based on incremental results between Threshold and Stretch performance.
Incentive Program Performance Measures and Weights 
The Program uses a balanced scorecard with performance measures weighted between Corporate and Team/Individual goals. All Corporate goals, weightings and Team/Individual goals for the CEO and Executive Officers are presented to the Compensation Committee for review and approval. Team/Individual goals for other Program participants are approved by the CEO.
The following schedules are attached to this Program document. Schedules A and B are approved by the Compensation Committee prior to the beginning of each performance period:
Schedule A: Award Percentages and Performance Measures Weightings
Schedule B: Bank Goals, Weightings and Definitions
Schedule C: Example Payout Calculation

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EXHIBIT 10.1

Program Discretion 
The Program has a portion of the Corporate and Team/Individual and goals based on discretion that allows the Compensation Committee and/or the CEO, as appropriate, to modify the final award based on a subjective assessment of performance and contributions to the Bank’s success.
Award Distributions 
At the end of the fiscal year, performance is measured and awards amounts are calculated. Awards are paid in cash (generally) within two and one half months following the end of the fiscal year or as soon as practical after approval of the award payout by the Committee.
Awards are paid out as a percentage of a participant’s annual base earnings as of June 30th. Base earnings are defined as the base salary in effect on June 30th and excludes referral fees, commissions and any other previously-paid performance compensation.
Payments under this Program are considered taxable income to participants in the year paid and will be subject to tax withholding. 
Risk Mitigation
HomeTrust seeks to appropriately balance risk with financial rewards in the Program design and implementation. The compensation arrangements in this Program are designed to be sufficient to incent participants to achieve approved strategic and tactical goals while at the same time not be excessive or lead to material financial loss to the Bank. 
Awards may be reduced or eliminated for credit quality and/or regulatory action. Unless the Compensation Committee deems otherwise, awards will not be paid, regardless of Corporate or Team/Individual performance, if 1) any regulatory agency issues a formal, written enforcement action, memorandum of understanding or other negative directive action where the Committee considers it imprudent to provide awards under this Program, and/or 2) after a review of the Company’s credit quality measures the Committee considers it imprudent to provide awards under this Program.
Coordination with Other Incentives
The Program does not inhibit the Bank from approving Program participants for inclusion in other Bank plans, bonuses, commissions and/or incentive compensation arrangements. The Board of Directors or the Committee may make discretionary bonuses to participants regardless of their participation in this Program.
Please see “Terms and Conditions” for further details on the Program provisions. 
Terms and Conditions 
The information represented below is subject to change and does not constitute a binding agreement. 
Definition of “Program”
“Program” refers to the HomeTrust Bancshares, Inc. Strategic Operating Committee Incentive Program.

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EXHIBIT 10.1

Definition of the “Bank”
For the purposes of this Program, the “Bank” refers to HomeTrust Bancshares, Inc. and HomeTrust Bank, collectively.
Definition of “Board of Directors”
For the purposes of this Program, “Board of Directors” refers to the boards of directors of HomeTrust Bancshares, Inc. and HomeTrust Bank, collectively.
Effective Date
This Program became effective July 1, 2012, and was amended on September 23, 2013. The Program may be amended from time to time with the approval of the Board of Directors.
Performance Period/Program Year
The performance period is July 1st through June 30th and may be referred to in this document as the Program year. 
Program Administration
The Program is authorized by the Board of Directors. Each of the Board and the Compensation Committee has the authority to make or nullify any rules and procedures, as necessary, for proper administration of the Program. 
The Program will be reviewed annually by the Compensation Committee to ensure proper alignment with the Bank’s business objectives. 
The Compensation Committee will approve all final award distributions paid to Program participants. Any determination by the Compensation Committee will be final and binding. 
Program Changes or Discontinuance
The Bank has developed the Program on the basis of existing business, market and economic conditions; current services; and staff assignments. If substantial changes occur that affect these conditions, services, assignments, or forecasts, the Bank may add to, amend, modify or discontinue any of the terms or conditions of the Program at any time. Examples of substantial changes may include mergers, dispositions or other corporate transactions, changes in laws or accounting principles or other events that would in the absence of some adjustment, frustrate the intended operation of this arrangement.
The Board of Directors may, at its sole discretion, waive, change or amend any of the Program as it deems appropriate. 
Program Interpretation
If there is any ambiguity as to the meaning of any terms or provisions of this Program or any questions as to the correct interpretation of any information contained therein, the Bank's interpretation expressed by the Board of Directors or the Committee will be final and binding. In the event of any conflict in interpretations by the Board of Directors and the Committee, the Board of Directors’ interpretation shall control.
Participation
CEO participation is determined by the Compensation Committee. Executive officers are recommended by CEO and approved by the Compensation Committee for final approval by the Board of Directors. Other employees may participate upon approval of the CEO. 

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EXHIBIT 10.1

New employees must be employed by April 1st of the performance period (July 1 – June 30) to be considered for participation in a given Program year. 
Award Determinations 
Program participants are eligible for a distribution under the Program only upon attainment of certain performance objectives defined under the Program and after the approval of the award by the Compensation Committee.
Performance at Threshold, Target and Stretch are interpolated to encourage and reward incremental performance improvement. 
Award Distributions
Awards are paid in cash (generally) within two and one half months following the end of the fiscal year or as soon as practical after approval of the award payout by the Compensation Committee.
Awards are paid out as a percentage of a participant’s annual base earnings as of June 30th. Base earnings are defined as base salary in effect as of June 30th and excludes referral fees, commissions and any other previously-paid performance compensation.
Incentive awards are considered taxable income to participants in the year paid and will be subject to tax withholding. 
New Hires, Reduced Work Schedules, Promotions, and Transfers
New hires that meet the eligibility criteria and are hired prior to April 1st of the Program year receive a pro-rated award based on the number of full months worked during the Program year. New hires employed by the Bank on or after April 1st are not eligible to receive an award for the current Program year.
Participants that are promoted or change roles where the participant becomes eligible or ineligible for an award or experience a change in incentive opportunity will receive a pro-rated award based on their status and the effective date of the promotion or role change. Award amounts will be calculated using the participant’s base earnings and the incentive target for the applicable period. Base earnings refers to the base salary in effect on June 30th and excludes referral fees, commissions and any other previously-paid performance compensation. 
Participants that have an approved leave of absence are eligible to receive a pro-rated award calculated using their time in active status as permitted by the Family Medical Leave Act or other applicable state and federal laws and regulations. 
Termination of Employment
To encourage employee retention, a participant must be an active employee of the Bank on the date the incentive award is paid to receive an award (please see exceptions for death, disability and retirement below.) Participants who terminate employment during the Program year will not be eligible to receive an award. Participants who have given notice of resignation during the Program year and before payout are not eligible to receive an award.
Death, Disability or Retirement
If a participant ceases to be employed by the Bank due to disability, his/her cash incentive award for the Program year will be pro-rated to the date of termination. 
In the event of death, the Bank will pay to the participant’s estate the pro rata portion of the cash award that had been earned by the participant during his/her period of employment. 

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EXHIBIT 10.1

Individuals who retire are eligible to receive a cash incentive payout if they are actively employed through March 31st of the performance period. 
Clawback
In the event that the Bank is required to prepare an accounting restatement due to the material noncompliance of the Bank with any financial reporting requirement under the securities laws, the Participants shall, unless otherwise determined in the sole discretion of the Committee, reimburse the Bank upon receipt of written notification for any excess incentive payment amounts paid under the Program calculation(s) which were based on financial results required to be restated. In calculating the excess amount, the Committee shall compare the calculation of the incentive payment based on the relevant results reflected in the restated financials compared to the same results reflected in the original financials that were required to be restated. Participants may write a check payable to the Bank for amounts equal to the written notification. In its discretion, the Compensation Committee has the right to adjust compensation and/or modify a Participant’s future incentive payments as it deems necessary. 
Ethics Statement
The altering, inflating, and/or inappropriate manipulation of performance/financial results or any other infraction of recognized ethical business standards will subject the employee to disciplinary action up to and including termination of employment. In addition, any incentive compensation as provided by this Program to which the employee would otherwise be entitled will be revoked or, if paid, be obligated to repay any incentive award earned during the award period in which the wrongful conduct occurred regardless of employment status.
Miscellaneous
Any participant awards shall not be subject to assignment, pledge or other disposition, nor shall such amounts be subject to garnishment, attachment, transfer by operation of law, or any legal process.
Participation in the Program does not confer rights to participation in other Bank programs, including annual or long-term incentive programs, non-qualified retirement or deferred compensation programs or other executive perquisite programs.
The Program will not be deemed to give any participant the right to be retained in the employ of the Bank, nor will the Program interfere with the right of the Bank to discharge any participant at any time for any reason.
In the absence of an authorized, written employment contract, the relationship between employees and the Bank is one of at-will employment. The Program does not alter the relationship.
This Program and the transactions and payments hereunder shall, in all respect, be governed by, and construed and enforced in accordance with the laws of the state in which the participant is employed.
Each provision in this Program is severable, and if any provision is held to be invalid, illegal, or unenforceable, the validity, legality and enforceability of the remaining provisions shall not, in any way, be affected or impaired thereby.
This Program is proprietary and confidential to HomeTrust Bancshares, Inc. and its employees and should not be shared outside the organization other than as required by executive compensation reporting and disclosure requirements.

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EXHIBIT 10.1

	
									
	Schedule A: 2018 Award Percentages and Performance Measures Weighting

	Participant
	 
	Title
	 
	Target %
	 
	Corporate 
Weighting
	 
	Unit/Func 
Weighting

	Dana Stonestreet
	 
	CEO
	 
	55%
	 
	80%
	 
	20%

	Tony VunCannon
	 
	CFO
	 
	30%
	 
	70%
	 
	30%

	Hunter Westbrook
	 
	CBO
	 
	40%
	 
	70%
	 
	30%

	Howard Sellinger
	 
	CIO
	 
	30%
	 
	70%
	 
	30%

	Keith Houghton
	 
	CCO
	 
	30%
	 
	70%
	 
	30%

	Parrish Little
	 
	CRO
	 
	30%
	 
	70%
	 
	30%

    

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EXHIBIT 10.1

	
					
	Schedule B: Bank Goals, Weightings and Definitions 

	Performance 
Measure
	 
	CEO
	 
	SOC

	Net Income
	 
	50%
	 
	40%

	 
	 
	 
	 
	 

	Efficiency Ratio
	 
	15%
	 
	15%

	 
	 
	 
	 
	 

	Total Loans (Excluding Purchased HELOCs)
	 
	15%
	 
	15%

	 
	 
	 
	 
	 

	Functional Team
	 
	20%
	 
	30%

	 
	 
	 
	 
	 

	 
	 
	100%
	 
	100%

The Compensation Committee may reduce the amount of incentive payments at their discretion based on the level of nonperforming loans and OREO.

Note: Payouts for performance between Threshold and Target and Target and Stretch will be calculated using straight line interpolation.

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EXHIBIT 10.1

	
												
	Schedule C: Example Payout Calculation

	2018 POTENTIAL BASED ON TARGET
	 
	Performance Goals
	 
	 

	Performance Measures
	Incentive
	 
	Threshold
	Target
	Stretch
	Actual
	 

	 
	at Target
	Weight
	50%
	100%
	150%
	Performance
	Payout

	 
	 
	 
	 
	 
	 
	 
	 

	Corporate
	 
	 
	 
	 
	 
	 
	 

	Net Income
	$
	24,000
	

	40%
	 
	 
	 
	Target
	$
	24,000
	

	Efficiency Ratio
	$
	9,000
	

	15%
	TBD
	TBD
	TBD
	Target
	$
	9,000
	

	Total Loans
	$
	9,000
	

	15%
	TBD
	TBD
	TBD
	Target
	$
	9,000
	

	 
	 
	 
	 
	 
	 
	 
	 

	Corporate Goal Achievement
	$
	42,000
	

	70%
	 
	 
	 
	 
	$
	42,000
	

	 
	 
	 
	 
	 
	 
	 
	 

	Unit/Function
	 
	 
	 
	 
	 
	 
	 

	Goal 1
	$
	9,000
	

	15%
	Goal One
	 
	$
	9,000
	

	Goal 2
	$
	9,000
	

	15%
	Goal Two
	 
	$
	9,000
	

	 
	 
	 
	 
	 
	 
	 
	 

	Team/Individual Achievement
	$
	18,000
	

	30%
	 
	 
	 
	 
	$
	18,000
	

	 
	 
	 
	 
	 
	 
	 
	 

	Grand Total
	$
	60,000
	

	100%
	 
	 
	 
	 
	$
	60,000
	

	The Committee may modify downward the corporate performance component for credit quality.

-10-Exhibit 10.4

 

Execution Copy

 

THIRD FORBEARANCE AGREEMENT

 

This THIRD FORBEARANCE AGREEMENT, dated
as of November 7, 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).

 

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”);

 

WHEREAS, pursuant to Sections 8.4(a) and
(b) of the Credit Agreement, (a) the Loan Parties are required to maintain, on a consolidated basis, a monthly minimum balance
of $2,000,000 in unrestricted, unencumbered cash in one or more Controlled Accounts that are free and clear of all Liens, subject
to certain exceptions, (b) Consolidated Total Revenue of the Borrower for the twelve consecutive month period ended September 30,
2016 was required to be $22,250,000, (c) Consolidated Total Revenue of the Borrower for the twelve consecutive month period ended
December 31, 2016 was required to be $24,600,000, (d) Consolidated Total Revenue of the Borrower for the twelve consecutive month
period ended March 31, 2017 was required to be $27,200,000, (e) Consolidated Total Revenue of the Borrower for the twelve consecutive
month period ended June 30, 2017 was required to be $30,300,000 and (f) Consolidated Total Revenue of the Borrower for the twelve
month period ended September 30, 2017 was required to be $33,800,000;

 

WHEREAS, the Loan Parties have failed to
satisfy and comply with requirements of Sections 8.4(a) and (b) set forth in the previous recital;

 

WHEREAS, the Borrower has requested that
the Lender temporarily forbear from exercising or pursuing its available remedies as further described herein; and

 

WHEREAS, the Lender is willing to agree
to such temporary forbearance 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:

 

    	 	1	 

     

    

 

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 and recitals, shall have the following meanings (such definitions to be equally applicable to the singular
and plural forms thereof):

 

“Agreement” is
defined in the preamble.

 

“Borrower” is
defined in the preamble.

 

“Credit Agreement”
is defined in first recital.

 

“Forbearance Effective Date”
is defined in Article III.

 

“Guarantor” is
defined in the preamble.

 

“Lender” is defined
in the preamble.

 

“Loan Party” is
defined in the preamble.

 

“Specified Defaults”
is defined in Section 2.1(a).

 

“Termination Date”
is defined in Section 2.1(b).

 

Article
II

FORBEARANCE, ETC.

 

		SECTION	2.1.      Forbearance,
etc.

 

(a)              
The Borrower acknowledges and agrees that it was in Default of (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 (v) September 30, 2016, (w) December 31, 2016, (x) March 31,
2017, (y) June 30, 2017 and (z) September 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) December 31, 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.

 

    	 	2	 

     

    

 

(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
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 “Forbearance 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.

 

SECTION 3.2.     
Effective Date Certificate. The Lender shall have received a certificate, dated as of the Forbearance 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; provided, however, that the Borrower shall be not be required to reimburse Lender for fees and expenses
of Morrison & Foerster LLP in excess of $8,000 .

 

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.

 

    	 	3	 

     

    

 

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.

 

SECTION 5.2.     
Validity, etc. Each Loan Party hereby represents and warrants, as of the Forbearance 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 2.1 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.

 

    	 	4	 

     

    

 

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.

 

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]

    	 	5	 

     

    

 

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 ___________________________
	 	Name:
	 	Title:
	 	 
	 	GUARANTOR:
	 	 
	 	AQUAMED TECHNOLOGIES, INC.,
	 	 
	 	By ___________________________
	 	Name: 
	 	Title:

 

 

    	 	6	 

     

    

 

 

LENDER:

 

PERCEPTIVE CREDIT HOLDINGS, LP

 

By Perceptive Credit Opportunities GP, LLC,

its general partner

 

By _____________________________

Sandeep Dixit

Chief Credit Officer

 

By _____________________________

Name:

Title:

 

    	 	7

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