Document:

Exhibit

Exhibit 10.20

Second Amendment to Stock Purchase Agreement
This Second Amendment to Stock Purchase Agreement  (this “Amendment”) is made and entered into as of December 14, 2017 among SCH-AEON, LLC (f/k/a STRATHSPEY CROWN HOLDINGS,  LLC), a Delaware limited liability company (“Seller”), ALPHAEON CORPORATION, a Delaware corporation (“Purchaser”), Evolus, Inc. (“Evolus”), and J Christopher Marmo, in his capacity as Contributors’ Representative (the “Contributors’ Representative”), with the acknowledgment and consent of the parties listed as “Contributors” on the signature pages hereto (the “Contributors”).
RECITALS
A.WHEREAS, pursuant to the Contribution Agreement (the “Contribution Agreement”) by and among Seller, the Contributors, and the Contributors’ Representative, the Contributors contributed to Seller 10,000,000 shares of common stock and 1,250,000 shares of series A preferred stock of Evolus, representing one hundred percent (100%) of the outstanding capital stock of Evolus, of which (i) 125,000 shares of the series A preferred stock of Evolus and 1,000,000 shares of common stock of Evolus (the “Class D Shares”) were contributed in exchange for Class D Units of Seller (the “Class D Units”) and (ii) the remaining shares were contributed in exchange for Class AA Units of Seller.
B.WHEREAS, pursuant to the Contribution Agreement, the Contributors were given the right to require that Seller sell all of the Class D Shares to Alphaeon, and the Contributors subsequently exercised such right.
C.WHEREAS, Seller and Purchaser entered into that certain Stock Purchase Agreement, dated as of September 30, 2014, as amended by that certain Amendment to Stock Purchase Agreement (undated) (so amended, the “Original Agreement”), of which the Contributors are express third party beneficiaries, pursuant to which and subject to the terms and conditions of which, Seller sold to Purchaser, and Purchaser purchased from Seller, all of the Class D Shares of Evolus, in exchange for the consideration including the payments specified in Sections 2(a) and 2(b) thereof (the “Contingent Payments”);
D.WHEREAS, pursuant to the terms of that certain Second Amended and Restated Limited Liability Company Agreement of Seller, dated August 15, 2013, as amended by that certain Amendment No. 1 dated October 3, 2013, the Contributors, through their ownership of the Class D Units, are entitled, subject to certain conditions, to the distribution of all cash received by Seller directly attributable to the Class D Shares, including dividends on the Class D Shares, sales of the Class D Shares and redemptions of the Class D Shares and, accordingly, are entitled, subject to such conditions, to the distribution of all proceeds that may be received by Seller on account of its sale of the Class D Shares pursuant to the Original Agreement, including the Contingent Payments;
E.WHEREAS, the Original Agreement may be amended by written instrument signed by Purchaser, Seller and Contributors’ Representative on behalf of the Contributors;

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

F.WHEREAS, as of the date hereof, Evolus is a wholly-owned subsidiary of Purchaser;
G.WHEREAS, Evolus is currently contemplating corporate transactions including the offering of its equity;
H.WHEREAS, the parties agree that Evolus has received and will receive substantial tangible and intangible benefits, including the increased ability to conduct such corporate transactions, by entering into this Amendment; 
I.WHEREAS, Contributors’ Representative is the representative of the Contributors under the Contribution Agreement;
J.WHEREAS, Seller and Purchaser now desire to amend certain portions of the Original Agreement, including the terms of the Contingent Payments (the Original Agreement, as amended by this Amendment, the “Amended Agreement”), and Evolus and the Contributors’ Representative, with the consent of the Contributors, agree to enter into this Amendment, on the terms and subject to the conditions set forth herein;
K.WHEREAS, the Contributors and the Seller desire that the Contributors surrender their respective Class D Units to Seller in consideration of the Contributors’ Representative becoming the direct beneficiary, on the Contributors’ behalf, of the Contingent Obligations and related rights under the Amended Agreement; and
L.WHEREAS, as a condition to the willingness of the Contributors to consent this Amendment, Evolus, the Contributors and the Contributors’ Representative are entering into a Tax Indemnity Agreement of even date herewith (the “Tax Indemnity Agreement”).
NOW, THEREFORE, in consideration of the foregoing, and for other good  and  valuable consideration, the receipt and sufficiency of which is hereby acknowledged by all signatories hereto, it is agreed  as follows:
AGREEMENT
1.Defined Terms. Capitalized terms used but not defined in this Amendment shall have the meaning set forth in the Original Agreement.
2.Amendment of Definitions.  Section 1 of the Original Agreement is hereby amended to add the following defined terms:
  “ ‘Change of Control’ means: (a) the sale of all or substantially all the assets of the Purchaser (at any time prior to the assignment of its obligations to Evolus pursuant to Section 7 of this Agreement) or Evolus; (b) the exclusive license in whole of the Product or the business related to the Product to a third party (other than the sub-license (or similar arrangement) of any rights under the Daewoong Agreement to a third party for a given territory(ies) or indication(s) shall not constitute an exclusive license of the Product so long 

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

as, under such arrangement, Purchaser or Evolus (as the case may be) shall continue to make sales to such third party); (c) any merger, consolidation or acquisition of Purchaser (at any time prior to the assignment of its obligations to Evolus pursuant to Section 7 of this Agreement) or Evolus with, by or into another corporation, entity or person (except a merger or consolidation in which the holders of capital stock of such entity immediately prior to such merger or consolidation continue to hold at least fifty percent (50%) of the voting power of the capital stock of such entity or the surviving or acquiring entity; or (d) any change in the ownership of more than fifty percent (50%) of the voting capital stock of Purchaser (at any time prior to the assignment of its obligations to Evolus pursuant to Section 7 of this Agreement) or Evolus in one or more related transactions; provided, however that a Change of Control shall expressly not include any public offering of Evolus’ capital stock.”
  “ ‘Class D Pro Rata Share’ means, with respect to each Contributor, (i) the number of Class D Units of Seller owned by such Contributor immediately prior to the Second Amendment Effective Date, divided by (ii) the aggregate number of Class D Units of Seller owned by all Contributors immediately prior to the Second Amendment Effective Date.”
  “ ‘Second Amendment’ means that certain Second Amendment to this Agreement, dated as of the Second Amendment Effective Date, among Seller, Purchaser, Evolus and Contributors’ Representative.”
  “ ‘Second Amendment Effective Date’ means December 14, 2017.”
3.Amendment of Section 2.
  a.          Sections 2(b) and 2(c) of the Original Agreement are hereby amended and restated in their entirety to read as follows:
“(b)       “In consideration for the Class D Shares, Purchaser shall do the following:

(i)          on the Second Amendment Effective Date, issue to Contributors’ Representative, for the benefit of the Contributors, a promissory note in the principal amount of twenty million ($20,000,000) in the form of Exhibit A to the Second Amendment (the “Promissory Note”); and
(ii)          make the following payments to Contributors’ Representative, for the benefit of the Contributors: (A) a payment in an aggregate amount equal to Nine Million Two-Hundred Twelve Thousand Five Hundred United States Dollars ($9,212,500) upon U.S. Approval (the “Milestone Payment”); (B) quarterly payments in an aggregate amount equal to [***] percent ([***]%) of the Net Sales of the Product in the United States and its territories and possessions for each quarter (or portion thereof) following the U.S. Approval; and (C) quarterly payments in an aggregate amount equal  to [***]  percent  ([***]%)  of the Net Sales  of the  Product  in any region, territory or jurisdiction  other than the United  States and its territories and  possessions for  each quarter  (or  portion  thereof)  for  

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

any  indication in such  non-United  States  region,  territory  or jurisdiction for which Purchaser or any of its Affiliates has the right to market or sell the Product.
(c)          The obligation to make the payments set forth in Clauses 2(b)(ii)(B) and 2(b)(ii)(C) shall terminate with respect to any quarter commencing after the 10-year anniversary of the first commercial sale of the Product in the United States after the receipt of U.S. Approval.”
   b.          Section 2 of the Original Agreement is hereby amended to add the following clauses (d) and (e) thereto:
“(d)          Except as may otherwise be agreed among the Contributors and Contributors’ Representative, any payments received by Contributors’ Representative in respect of the Promissory Note or pursuant to Section (2)(b)(ii) of this Agreement shall be distributed by Contributors’ Representative to the Contributors in accordance with their respective Class D Pro Rata Shares.
(e)            Notwithstanding any provision of any agreement to the contrary, Purchaser agrees that it shall be solely responsible for any obligations to make payments to Rui Avelar, Adelbert Stagg, Gregg Peterson and/or Barb Lagerquist upon U.S. Approval or on account of the payment of the Milestone Payment (“Employee Milestone Payments”).  Without limiting the foregoing, Purchaser shall indemnify, defend and hold harmless Contributors’ Representative, each Contributor and Seller from and against any and all losses, claims, liabilities, demands, charges, costs, awards, penalties, fines and expenses (including reasonable fees and disbursements of legal counsel) arising from or relating to any Employee Milestone Payments or any allegation that Employee Milestone Payments may be due or payable.”
4.Payments.  All payments to be made under Section 2 hereof shall be made by wire transfer to an account designated by the Contributor Representative.  Contributor Representative shall be responsible for the allocation of all such funds pursuant to the Contributors. 
5.Continuation and Powers of Contributors’ Representative.  The Contributors’ Representative represents and warrants that he still has the powers set forth in Article VIII of the Contribution Agreement.  In the event that Purchaser or Evolus shall make a payment under Section 2 to Contributors’ Representative, Contributors’ Representative shall indemnify, defend and hold harmless Evolus, Seller and Purchaser from any allegation or claim related to failure to properly allocate such payment to a Contributor.  Without limiting any other provision of the Amended Agreement, Seller, Purchaser, Evolus hereby acknowledge and agree that (a) Contributors are express third party beneficiaries of Sellers’ rights and Purchaser’s obligations under the Amended Agreement, (b) Contributors’ Representative shall have the power to enforce any and all such rights and obligations on behalf of Contributors as if Contributors’ Representative were an original party thereto and (c) Seller shall have no right to amend, waive, settle or otherwise compromise any such rights or obligations without the express written consent of Contributors’ Representative. 

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

6.Termination of Development Budget Default and Non-Competition Clause.  Immediately upon execution of this Agreement, each of Evolus, Seller and Purchaser agree that (a) the terms of Sections 2.2(g) and (h) and Sections 6.6(a)(i) and (iii) of the Contribution Agreement are hereby terminated and shall be of no further force and effect and (b) any communications among any of the Contributors shall not be deemed to contravene Section 6.6(a)(ii) of the Contribution Agreement.
7.Additional Amendments to Original Agreement.
a.          The Original Agreement is hereby amended to add the following new Section 7 thereto:
“7.          Assignment of Obligations to Evolus upon Public Offering.  Evolus is hereby joined as a party to this Agreement and agrees to be bound by this Agreement as if an original party hereto.  Concurrent with and contingent upon the closing of a public offering of the capital stock of Evolus pursuant to a registration statement under the Securities Act of 1933, as amended (the “Triggering Event”); without any further action on the parts of the parties hereto or the Contributors, Purchaser shall immediately and automatically be deemed to have assigned to Evolus, and Evolus shall immediately and automatically be deemed to have accepted and directly assume and undertake, all obligations of Purchaser set forth in this Agreement (including, but not limited to the payment obligations set forth in Section 2 hereof), and as a result Evolus shall concurrently and immediately become the “Borrower” under the Promissory Note; provided, that the foregoing shall not relieve Purchaser of any breach of this Agreement or default under the Promissory Note that may have occurred prior to such assignment.  From and after the Triggering Event, Purchaser shall have no further obligations under this Agreement or the Promissory Note and the Contributors’ Representative and the Contributors shall look solely to Evolus to fulfill the obligations set forth in this Agreement and the Promissory Note, except that the foregoing shall not relieve Purchaser or any breach of this Agreement or default under the Promissory Note that may have occurred prior to such assignment.”
b.          The Original Agreement is hereby amended to add the following new Section 8 thereto:
 “8.          Binding Effect.  This Agreement shall be binding on any successor or permitted assign of this Agreement.  Except in accordance with Section 7 hereof, neither Purchaser nor Evolus shall be permitted to directly or indirectly assign, transfer or delegate this Agreement or any of its obligations hereunder by transfer or assets or liabilities, Change of Control or otherwise; provided, however, that Purchaser or Evolus shall be permitted to effect a Change of Control provided that, as a condition to such Change of Control, the acquiring Person expressly agrees to assume all obligations of Purchaser or Evolus (as the case may be) hereunder in a writing in form and substance reasonably satisfactory to Contributors’ Representative.”
c.          The Original Agreement is hereby amended to add the following new Section 9 thereto:

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

“9.          Further Assurances.  Each party agrees to take such further actions, and execute and deliver such additional documents, as may be reasonably requested by any other party to effectuate the intent and purposes of this Agreement.”
8.Consideration to Alphaeon and Evolus.  The parties acknowledge and agree that the economic concessions of the Contributors reflected herein, together with the other consideration being provided by the Contributors, are fair and provide reasonably equivalent value to Alphaeon in exchange for the benefits being provided to the Contributors hereunder.  In exchange for the agreement by Evolus to enter into this Amendment and to undertake, concurrent and contingent upon the Triggering Event, all obligations of Purchaser set forth in the Amended Agreement and pursuant to the Promissory Note (as defined therein) (the “Obligations”), Purchaser shall, on a dollar for dollar basis, setoff and reduce the amount of intercompany loans owing by Evolus to the Purchaser (taking into account the fair value of all the Obligations), and the analysis of the provisions of this Amendment for purposes of Fraudulent Transfer Laws shall give effect to any discharge of intercompany debt as a result of the assumption by Evolus of the Obligations.  “Fraudulent Transfer Laws” shall mean applicable law relating to fraudulent conveyance or fraudulent transfer (including the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act and Section 548 of Title 11 of the United States Code or any applicable provisions of comparable law).  Purchaser and Evolus shall have the fair value of the Obligations valued by a third-party accounting firm for purposes of the foregoing offset.  
9.Tax Matters.  The parties intend that for U.S. federal income tax purposes the Contributors shall be treated as receiving a distribution from Seller of the right to receive payments from Purchaser under the Amended Agreement in a transaction in which no gain or loss is recognized, such that the Contributors may continue reporting of the consideration payable under the Amended Agreement under the installment sale method of Internal Revenue Code section 453 (“Installment Sale Reporting”) to the same extent that Installment Sale Reporting was available to Seller prior to the execution of this Amendment.  In connection with the foregoing, upon the Second Amendment Effective Date, (a) each Contributor hereby contributes, transfers and assigns to Seller all of its right, title and interest in and to such Contributor’s Class D Units and (b) Seller accepts the contribution, transfer and assignment of such Class D Units, which Class D Units shall henceforth be deemed cancelled, and hereby irrevocably waives any claim that it may otherwise have to any of the proceeds of the Contingent Payments.
10.Expenses.  Regardless of whether this Amendment is executed, Purchaser will reimburse Contributors’ Representative for its out of pocket legal fees and related disbursements incurred in connection with this Amendment, against reasonable evidence thereof, and subject to a maximum aggregate cap of $41,500.
11.Continuing Effect.  This Amendment shall be deemed to form an integral part of the Original Agreement and construed in connection with and as part of the Original Agreement, and all terms, conditions, covenants and agreements set forth in the Original Agreement and each other instrument or agreement referred to therein, as applicable, except as explicitly set forth herein, are hereby ratified and confirmed and shall remain in full force and effect, unmodified in any way.  In the event of any inconsistency or conflict between the provisions of the Original Agreement and this Amendment, the provisions of this Amendment will prevail and govern.  All references to the 

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

“Agreement” in the Original Agreement shall hereinafter refer to the Agreement as amended and supplemented by this Amendment.
12.Counterparts.  This Amendment may be executed in two (2) or more counterparts (any of which may be delivered by electronic transmission), each of which will be deemed an original, but all of which together will constitute one and the same instrument.
[Remainder of Page Left Intentionally Blank]

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date first set forth above.
	
		
	SELLER:

	SCH-AEON, LLC

	 

	By:
	/s/ Robert Grant

	Name:  Robert Grant

	Title:  Manager

	 

	 

	PURCHASER:

	ALPHAEON CORPORATION

	 

	By:
	/s/ Murthy Simhambhatla

	Name:  Murthy Simhambhatla

	Title:  CEO

	 

	 

	EVOLUS:

	Evolus, Inc.

	 

	By:
	/s/ Murthy Simhambhatla

	Name:  Murthy Simhambhatla

	Title:  CEO

	 

	 

	CONTRIBUTORS’ REPRESENTATIVE:

	 

	/s/ J. Christopher Marmo

	J. Christopher Marmo,

	as the Contributors’ Representative

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

Acknowledged and Agreed by the Contributors:
	
		
	/s/ J. Christopher Marmo

	J. Christopher Marmo

	 

	/s/ Scott Cannizzaro 

	Scott Cannizzaro

	 

	/s/ John Gross

	John Gross

	 

	The Gordon and Dona Crawford Trust UTD 

	8/23/77

	 

	By:
	 /s/ Gordon Crawford 

	 
	Trustee

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

Exhibit A
THIS INSTRUMENT IS SUBJECT TO THE TERMS OF A SUBORDINATION AGREEMENT DATED AS OF DECEMBER 14, 2017 (THE “SUBORDINATION AGREEMENT”) IN FAVOR DENTAL INNOVATION BVBA, AS COLLATERAL AGENT AND LONGITUDE VENTURE PARTNERS II, L.P., WHICH SUBORDINATION AGREEMENT (AS AMENDED IN ACCORDANCE WITH ITS TERMS) IS INCORPORATED HEREIN BY REFERENCE.
Form of Promissory Note
	
		
	$20,000,000
	December 14, 2017

PROMISSORY NOTE
Obligation.  For value received, Alphaeon Corporation (“Alphaeon”) (and after the Triggering Event, Evolus, Inc. (“Evolus”)) (“Borrower”) promises to pay to the order of J. Christopher Marmo, as Contributors’ Representative under the Contribution Agreement (as defined in the SPA) (“Lender”), the Principal Amount in the manner and upon the terms and conditions set forth herein.  Capitalized terms used herein, but not otherwise defined shall have the meaning set forth in that certain Stock Purchase Agreement, dated as of September 30, 2014, as amended by that certain Amendment to Stock Purchase Agreement (undated) and that certain Second Amendment, dated December 14, 2017, by and among SCH, Alphaeon, Evolus and Lender (so amended, the “SPA”).
Amount, Interest and Payment.  The principal amount (“Principal Amount”) of this Promissory Note (the “Note”) is twenty million and 00/100 Dollars ($20,000,000).  The Principal Amount shall not bear interest. The Principal Amount shall be due and payable on: the two-year, six-month anniversary of the first commercial sale of the Product in the United States after the receipt of U.S. Approval (the “Due Date”).  Payments of the Principal Amount on the Due Date shall be made in lawful money of the United States of America by check or wire transfer to an account designated by the Lender. Upon payment in full of the Principal Amount, this Note shall be surrendered to Borrower for cancellation. 
Prepayment.  Borrower shall have the right, at its option, to prepay this Note, in part or in full, at any time and from time to time, prior to maturity, without penalty, bonus or charge. 
Events of Default.  Any of the following shall be an “Event of Default” (i) the Borrower shall fail to meet its obligation to timely make the required principal payments hereunder; (ii) the Borrower (or Evolus, if it is not then the Borrower) shall be dissolved or liquidated; (iii) the Borrower (or Evolus, if it is not then the Borrower) shall make an assignment for the benefit of creditors or shall be unable to, or shall admit in writing its inability to pay its debts as they become due; (iv) the Borrower (or Evolus, if it is not then the Borrower) shall commence any case, proceeding, or other action under any existing or future law of any jurisdiction relating to bankruptcy, insolvency, reorganization or relief of debtors, or any such action shall be commenced against the Borrower (or Evolus, if it is not then the Borrower) and shall not be 

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

discharged within 60 days; (v) the Borrower (or Evolus, if it is not then the Borrower) shall suffer a receiver to be appointed for it or for any of its property or shall suffer a garnishment, attachment, levy or execution, (vi) a material breach of the SPA or Tax Indemnity Agreement, in which Alphaeon or Evolus (as the case may be) fails to cure such breach within thirty (30) days after receipt of written notice describing the breach in reasonable detail; or (vii) so long as Alphaeon is the Borrower under this Note, if there is an event of default with respect to its Senior Debt or Subordinated Debt, which event of default is not cured during the applicable cure period or waived in writing by the requisite holders and which event of default results in the acceleration of such Senior Debt or Subordinated Debt and the holders of the Senior Debt shall have exercised their rights under any of the Senior Collateral Documents.  “Senior Debt” of Alphaeon means the indebtedness evidenced by (i) those certain Secured Convertible Promissory Notes issued under that certain Amended and Restated Secured Convertible Promissory Note Purchase Agreement, dated as of April 19, 2017, by and among Alphaeon, Dental Innovations BVBA (as collateral agent) (the “Collateral Agent”) and the other purchasers party thereto, and any amendment or refinancing thereof; and (ii) that certain Third Amended and Restated Secured Convertible Bridge Note, dated as of December 14, 2017, amending and restating that certain Second Amended and Restated Secured Convertible Bridge Note, dated as of April 19, 2017, between Alphaeon and Longitude Venture Partners II, L.P. (“Longitude”), and any amendment or refinancing thereof, as secured by the following (the “Senior Collateral Documents”); (w) the Pledge and Security Agreement by and between Alphaeon and the Collateral Agent, as amended on April 19, 2017 and as further amended from time to time, or (x) that certain Guaranty and Security Agreement dated as of April 19, 2017, by and between Evolus and the Collateral Agent, dated as of April 19, 2017, as the same may be amended or restated from time to time; (y) that certain Amended and Restated Pledge and Security Agreement, dated as of May 27, 2016, amended and restated as of July 26, 2016, and amended as of April 19, 2017, between Alphaeon and Longitude, as the same may be amended or restated from time to time; or (z) that certain Guaranty and Security Agreement, dated as of April 19, 2017, by Evolus in favor of Longitude, as the same may be amended or restated from time to time..  “Subordinated Debt” means the indebtedness of Alphaeon evidenced by that certain Third Amended and Restated Intercompany Credit Line Promissory Note, dated October 30, 2015, between Alphaeon and SCH-AEON, LLC (formerly known as Strathspey Crown Holdings, LLC), as amended by that certain Amendment dated July 26, 2016, as the same may be further amended or restated from time to time.
Acceleration Upon Event of Default.  If an Event of Default occurs and is continuing, the then unpaid Principal Amount will, at the option and upon written demand of Lender, become immediately due and payable; provided, however, in case of the occurrence of an Event of Default under clause (ii), (iii), (iv) or (v) thereof, such amounts shall become immediately due and payable without any declaration or other action by the Lender and without further presentment, notice, protest or demand for payment of any kind, all of which are hereby waived.
Acceleration Upon Change of Control.  Upon a Change of Control (as defined below), the then unpaid Principal Amount will, without further action, become due and payable immediately, without further presentment, notice, protest or demand for payment of any kind, all of which are hereby waived.  For purposes of this Promissory Note, “Change of Control” means: (a) the sale 

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

of all or substantially all the assets of the Borrower (or Evolus, if it is not then the Borrower); (b) the exclusive license in whole of the Product or the business related to the Product to a third party (provided that the sub-license (or similar arrangement) of any rights under the Daewoong Agreement to a third party for a given territory(ies) or indication(s) shall not constitute an exclusive license of the Product so long as, under such arrangement, Alphaeon or Evolus (as the case may be) shall continue to make sales to such third party); or (c) any merger, consolidation or acquisition of the Borrower (or Evolus, if it is not then the Borrower) with, by or into another corporation, entity or person (except a merger or consolidation in which the holders of capital stock of such entity immediately prior to such merger or consolidation continue to hold at least fifty percent (50%) of the voting power of the capital stock of such entity or the surviving or acquiring entity; provided, however that a Change of Control shall expressly not include any public offering of Evolus’ capital stock or any merger with or acquisition by Alphaeon or any of its subsidiaries or Affiliates.
Expenses of Enforcement.  Borrower agrees to pay all out-of-pocket costs and expenses, including, without limitation, reasonable attorneys’ fees, which Lender shall incur in connection with any legal action or legal proceeding commenced for the collection of this Note or the exercise, preservation or enforcement of Lender’s rights and remedies under this Note.
Severability.  If one or more provisions of this Note are held to be unenforceable under applicable law, such provision shall be excluded from this Note and the balance of this Note shall be interpreted as if such provisions were so excluded, and the remainder of this Note shall be enforceable in accordance with its terms.
Assignment and Delegation.  Borrower shall have no right to assign its rights hereunder, or to delegate any of its obligations hereunder; provided, however, that for the sake of clarity, after the Triggering Event the obligations hereunder will be automatically delegated to Evolus without any further action.  Without the consent of Borrower, Lender shall be entitled to delegate its obligations hereunder and to assign this Note in whole or in part to (a) any Person that assumes its responsibility as Contributors’ Representative under the Contribution Agreement in accordance with the terms thereof or (b) the Contributors in accordance with their respective Class D Pro Rata Shares; provided that such assignee complies with the obligations under the Subordination Agreement with respect to executing a joinder of such Subordination Agreement.
Cumulative Rights and Remedies.  If Lender delays in exercising or fails to exercise any of its rights under this Note, that delay or failure will not constitute a waiver of any of Lender’s rights or of any breach, default, or failure of condition under this Note.  No waiver by Lender of any of its rights or of any breach, default or failure of a condition under this Note shall be effective unless it is stated in writing signed by Lender.  All rights and remedies of Lender under this Note shall be cumulative and not alternative and shall be in addition to all rights and remedies available to Lender under applicable law.  Time is expressly made of the essence with respect to every provision hereof. 
Additional Documents and Acts.  Borrower will execute and deliver such additional documents and instruments, and perform such additional acts, as are commercially reasonable and necessary to carry out and perform its obligations in this Note.

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.

Loss, Theft, Destruction or Mutilation of Note.  Upon receipt of evidence reasonably satisfactory to Borrower of the loss, theft, destruction or mutilation of this Note, and, in the case of any such loss, theft or destruction, upon receipt of an affidavit of loss and indemnity from Lender reasonably satisfactory to Borrower, or, in the case of any such mutilation, upon surrender and cancellation of this Note, Borrower will make and deliver, in lieu of this Note, a new Note of like tenor.
Governing Law.  This Note shall be governed by and interpreted and construed in accordance with the laws of the State of California.
IN WITNESS WHEREOF, Borrower has caused this Note to be executed and delivered as of the day and year first above written.
	
		
	BORROWER

	ALPHAEON Corporation

	 

	By:
	/s/ Murthy Simhambhatla

	Name: Murthy Simhambhatla

	Title: CEO

	 

	Evolus, Inc. (as Borrower effective upon the Triggering Event)

	 

	By:
	/s/ Murthy Simhambhatla

	Name: Murthy Simhambhatla

	Title: CEO

Confidential treatment has been requested for portions of this exhibit under 17 C.F.R. Sections §§ 200.80(b)(4) and 230.406. The copy filed herewith omits the information subject to the confidentiality request. Omissions are designated as [***]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission.Exhibit

Exhibit 10.21

TAX INDEMNITY AGREEMENT
This Tax Indemnity Agreement (“Agreement”) is made as of December 14, 2017 by and among Evolus, Inc., a Delaware corporation (“Evolus”), each of the individuals listed on the signature pages hereto as “Contributors” (each, a “Contributor” and collectively the “Contributors”), and J. Christopher Marmo, as the Contributors’ representative (the “Contributors’ Representative”).  Each signatory hereto may be referred to hereinafter individually as a “Party” and collectively as the “Parties.” 
RECITALS
A.WHEREAS, pursuant to the Contribution Agreement (the “Contribution Agreement”) by and among SCH-AEON, LLC (f/k/a Strathspey Crown Holdings, LLC), a Delaware limited liability company (“SCH”), the Contributors, and the Contributors’ Representative, the Contributors contributed to SCH 10,000,000 shares of common stock and 1,250,000 shares of series A preferred stock of Evolus, representing one hundred percent (100%) of the outstanding capital stock of Evolus, of which (i) 125,000 shares of the series A preferred stock of Evolus and 1,000,000 shares of common stock of Evolus (the “Class D Shares”) were contributed in exchange for Class D Units of SCH and (ii) the remaining shares were contributed in exchange for Class AA Units of SCH.
B.WHEREAS, pursuant to the Contribution Agreement, the Contributors were given the right to require that SCH sell all of the Class D Shares to Alphaeon Corporation, a Delaware corporation (“Alphaeon”), and the Contributors subsequently exercised such right.
C.WHEREAS, SCH and Alphaeon entered into that certain Stock Purchase Agreement, dated as of September 30, 2014, as amended by that certain Amendment to Stock Purchase Agreement (undated) (so amended, the “SPA”), pursuant to which, and subject to the terms and conditions of which, SCH agreed to sell to Alphaeon, and Alphaeon agreed to purchase from SCH, all of the Class D Shares. 
D.WHEREAS, under Section 2 of the SPA, Alphaeon is obligated to make certain contingent payments (the “Original Contingent Payments”) eligible for installment sale reporting under Section 453 of the Internal Revenue Code of 1986, as amended (together with any corresponding provisions of any superseding law, the “Code”), and the regulations (“Regulations”) promulgated by the U.S. Department of Treasury thereunder (“Installment Sale Reporting”).
E.WHEREAS, pursuant to that certain Second Amendment to Stock Purchase Agreement dated as of even date herewith by and among SCH, Evolus, Alphaeon, the Contributors and the Contributors’ Representative (the “SPA Amendment”), the Original Contingent Payments were modified in certain respects, as set forth in Section 2 thereof (as so modified, the “Contingent Payments”), and the Contributors’ Representative, on behalf of the Contributors, became entitled to receive the Contingent Payments thereunder.
F.WHEREAS, the parties to the SPA Amendment intended that the execution of the SPA Amendment would cause the Contributors to be treated for U.S. 

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federal income tax purposes as receiving a distribution from SCH of the right to receive the Contingent Payments in a transaction in which no gain or loss is recognized such that the Contributors may continue Installment Sale Reporting with respect to the Contingent Payments to the same extent that Installment Sale Reporting was available to SCH with respect to the Original Contingent Payments prior to the execution of the SPA Amendment.
G.WHEREAS, as of the date hereof, Evolus is a wholly-owned subsidiary of Alphaeon.
H.WHEREAS, Evolus is currently contemplating an initial public offering of its capital stock pursuant to a registration statement under the Securities Act of 1933 (the “Evolus IPO”).
I.WHEREAS, certain of the Contingent Payments are contingent on, among other things, FDA approval and Net Sales of the Product, which relates to the business conducted by Evolus.
J.WHEREAS, pursuant to the SPA Amendment, concurrent with and contingent upon the consummation of the Evolus IPO and for valid business reasons, Evolus will immediately and automatically assume and undertake all obligations with respect to the Contingent Payments, and Alphaeon will have no further obligations with respect thereto (the “Assumption”).
K.WHEREAS, in consideration of the Assumption, Alphaeon agreed to set-off and reduce, on a dollar-for-dollar basis, the amount of certain intercompany loans owing by Evolus to Alphaeon (taking into account the fair value of all the obligations with respect to the Contingent Payments).
L.WHEREAS, the Parties believe that the intercompany loans may be characterized as equity for U.S. federal income tax purposes.
M.WHEREAS, the Parties believe that under case law and certain Internal Revenue Service (“IRS”) administrative guidance, the availability of Installment Sale Reporting by the Contributors with respect to the Contingent Payments will continue following the Assumption, and the Assumption will not be treated as a “payment” within the meaning of the applicable Regulations under Section 453 of the Code.
N.WHEREAS, pursuant to the SPA Amendment, the parties thereto agreed to enter into a separate tax indemnification agreement, to be effective as of the consummation of the Evolus IPO, providing certain indemnification payments by Evolus to the Contributors in the event the IRS or other taxing authority were to finally determine that the Assumption rendered continued Installment Sale Reporting unavailable to the Contributors, subject to certain terms and conditions to be agreed.        

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NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by all signatories hereto, it is hereby agreed as follows:
AGREEMENT
ARTICLE 1
DEFINITIONS AND USAGE
Section 1.1    Specified Definitions.  For purposes of this Agreement, the following terms have the meanings specified in this Section 1.1:
“Defense Costs” means any costs of defense (including any attorney and accounting fees), audits costs, costs of further proceedings and similar costs and liabilities related to a Tax Matter for which indemnification is available under this Agreement (i) incurred by Evolus on behalf of any Contributor or (ii) incurred directly by such Contributor, except in the case of this clause (ii) to the extent incurred during such period of time that Evolus (A) controls such Tax Matter pursuant to Section 3.1 and (B) is not in material breach of any provision of this Agreement.
“Final Determination” means (i) a decision, judgment, decree or other order by any court of competent jurisdiction, which decision, judgment, decree or other order has become final after all allowable appeals by either party to the action have been exhausted or the time for filing such appeals has expired and is not subject to further review or modification, (ii) entry into a closing agreement under Section 7121 of the Code or any other settlement or other final agreement in connection with an administrative or judicial proceeding, (iii) execution of an Internal Revenue Service Form 870-AD, or (iv) the expiration of the time for instituting suit with respect to a claimed tax deficiency.
“Tax Liability” means, with respect to a Contributor, any income tax, together with applicable interest and penalties, if any, actually assessed against such Contributor by a Taxing Authority that is attributable to a Final Determination that the Assumption constitutes a “payment” as defined in Regulations Section 15A.453-1(b)(3)(i) (for the avoidance of doubt, without regard to any Contingent Payments actually made in cash or other property), and, for state and local tax purposes only, as defined in any comparable or corresponding provision of state or local law, in each case solely for the taxable year of such Contributor in which the Assumption occurs.
“Tax Return” means any report, return, document, statement, election, disclosure, schedule, form, declaration or other information or filing (including any amendments) required to be supplied to any Taxing Authority with respect to taxes.
“Taxing Authority” means any governmental authority responsible for the administration or imposition of any tax.  

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Section 1.2    Other Definitions.  For purposes of this Agreement, any other capitalized terms have the meanings ascribed to such terms in the SPA (as amended) or the SPA Amendment, as the case may be.  
ARTICLE 2
INDEMNIFICATION; REMEDIES
Section 2.1    Indemnification.  On the terms and subject to the provisions of this Agreement, Evolus shall indemnify and hold harmless each Contributor from such Contributor’s Tax Liability and Defense Costs, if any; provided, however, that following any indemnification payments hereunder by Evolus to a Contributor, in the event that such Contributor’s Tax Liability is reduced (including without limitation any reduction by virtue of a refund, offer in compromise, or other determination of a Taxing Authority subsequent to the relevant Final Determination) (a “Tax Liability Reduction”), then such Contributor shall not be entitled to apply any such Tax Liability Reduction toward any other tax liability of such Contributor and shall provide notice to Evolus of such Tax Liability Reduction as soon as reasonably practicable after receipt thereof and repay as instructed by Evolus an amount equal to such Tax Liability Reduction in immediately available funds within fifteen (15) days of the Contributor’s receipt of such instruction.  For the avoidance of doubt and notwithstanding anything to the contrary herein, (a) the consummation of the Evolus IPO shall be a condition to any indemnification obligation under this Section 2.1, and (b) no indemnification obligation shall arise under this Section 2.1 other than by virtue of a Tax Liability or Defense Costs, including without limitation with respect to any tax liability resulting from any aspect of the SPA Amendment other than the Assumption. 
Section 2.2    Certain Limitations.  Notwithstanding Section 2.1, Evolus  have no liability (for indemnification or otherwise) under this Agreement:  
(a)    with respect to any Tax Liability resulting from a Final Determination finally entered into or otherwise finally determined after the later to occur of (x) payment in full of the Principal Amount (as defined in the Promissory Note) under the Promissory Note (for this purpose, treating any amounts Evolus is entitled to offset under Section 2.3 as payments under the Promissory Note) or (y) the 42 month anniversary of the first commercial sale of the Product (as defined in the SPA) in the United States after U.S. Approval (as defined in the SPA);
(b)    with respect to any Tax Liability resulting from a Final Determination except to the extent that such Tax Liability exceeds the Contributor’s incremental tax liability resulting from any Contingent Payments actually received by such Contributor prior to the date of such Final Determination (determined on a “with and without” basis by measuring the difference between the amount of taxes that the Contributor would pay to a Taxing Authority without taking into account such Contingent Payments and the amount of taxes that such Contributor actually is liable to pay taking into account such Contingent Payments, assuming (i) that such Contingent Payments are the last item of income on any Tax Return, and (ii) that such Final Determination was not made); or

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(c)    with respect to any Contributor’s Tax Liability relating to a particular Tax Matter, in the case of any breach by such Contributor or the Contributors’ Representative (in respect of such Contributor) of an obligation of the Contributor or the Contributors’ Representative under this Agreement which (i) such Contributor or the Contributors’ Representative fails to cure within thirty (30) days of written notice thereof and which breach materially prejudices Evolus’ ability to defend the Tax Matter or (ii) is a breach of Section 3.4.
Section 2.3    Offset Rights.  Evolus shall be entitled to reduce the amount of any payments to be made to a Contributor or to the Contributors’ Representative for the benefit of such Contributor under the Promissory Note or under Sections 2(b)(ii)(B) or 2(b)(ii)(C) of the SPA (as amended by the SPA Amendment) by the amount of any indemnification payments previously made to such Contributor or to the Contributors’ Representative for such Contributor’s benefit (and not subsequently repaid to Evolus in accordance with the proviso of Section 2.1) in respect of a Tax Liability hereunder; provided, however, that Evolus shall not be entitled to any reduction related to any Defense Costs or for any interest or penalties included in any Tax Liability.  Notwithstanding the immediately preceding sentence, in the event that the Contributor to whom indemnification is to be provided under this Agreement breaches Section 3.3 of this Agreement, Evolus shall be entitled to further reduce the amount of any payments to be made to a Contributor or to the Contributors’ Representative for the benefit of such Contributor under the Promissory Note or under Sections 2(b)(ii)(B) or 2(b)(ii)(C) of the SPA (as amended by the SPA Amendment) by the amount of any interest or penalties included in any Tax Liability and any by the amount of any Defense Costs incurred by Evolus or its affiliates in connection with the defense or resolution of any Tax Matter to which such indemnification payment relates.  The Contributors and the Contributors’ Representative hereby agree that, in the event of any offset pursuant to this Section 2.3 in respect of a Tax Liability relating to a Tax Matter, (a) such offset is intended to be borne solely by the Contributor whom is the subject of such Tax Matter, (b) the amount of any distributions from the Contributors’ Representative on account of Contingent Payments to which such Contributor would otherwise be entitled shall be reduced by the amount of such offset, and (c) the Contributors’ Representative shall distribute the proceeds of any Contingent Payments consistent with the foregoing.
Section 2.4    Remedies Exclusive.  The remedies provided in this Agreement shall be the sole and exclusive remedies of the Parties hereto and their heirs, successors, and assigns with respect to any Tax Liability or any other matters contemplated by this Agreement.  No Party may bring or commence any action with respect to this Agreement or the matters contemplated hereby, whether in contract, tort or otherwise, except to enforce such Party’s express rights under this Agreement.
ARTICLE 3
PROCEDURAL MATTERS
Section 3.1    Tax Controversies.  The applicable Contributor shall promptly notify Evolus and the Contributors’ Representative of any inquiries, claims, assessments, audits, litigation, proceeding or similar events with respect to a potential Tax Liability of such Contributor for which Evolus may be liable under this Agreement (such inquiry, claim, assessment, audit, litigation, proceeding or similar event, a “Tax Matter” and such notice, the “Tax Matter Notice”), describing the Tax Matter in 

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reasonable detail.  Upon providing written notice to the applicable Contributor and the Contributors’ Representative within thirty days of receipt of the Tax Matter Notice unconditionally and irrevocably acknowledging Evolus’ responsibility to indemnify and hold harmless such Contributor from its Tax Liabilities and Defense Costs relating to the Tax Matter in accordance herewith (the “Defense Notice”), except as otherwise provided in this Section 3.1, Evolus shall have the authority to control, in whole and with counsel of its choosing, any Tax Matter, including without limitation the authority to resolve and defend against any assessment, notice of deficiency, or other adjustment or proposed adjustment and to consent to any extension or waiver of the limitations period applicable to any Tax Matter, in each case solely to the extent relating to Tax Liabilities for which Evolus may be liable hereunder.  The Contributors and the Contributors’ Representative agree to provide to the relevant Taxing Authority such duly executed powers of attorney or such other documents as shall be requested by Evolus to permit Evolus or its representatives to carry out the purposes of this Section 3.1.  In the event that Evolus controls a Tax Matter, Evolus shall (a) diligently defend such Tax Matter, (b) keep the applicable Contributor and the Contributors’ Representative timely informed of the status of such Tax Matter; and (c) provide the applicable Contributor and the Contributors’ Representative with copies of any pleadings, correspondence, and other documents prior to the submission thereof.  In the event that Evolus controls a Tax Matter, the applicable Contributor and counsel of its own choosing shall have the right to participate in, but not direct, the prosecution or defense of such Tax Matter at the sole expense of such Contributor.  Evolus shall not agree to settle, compromise, consent to judgment with respect to or otherwise resolve any Tax Matter unless such settlement, compromise, or resolution (1) does not involve a finding or admission of wrongdoing by the applicable Contributor, (2) unconditionally releases such Contributor from all liability in respect of such Tax Matter, (3) imposes no equitable remedies on, and does not otherwise purport to limit, such Contributor, (4) does not subject such Contributor to any Tax Liabilities not fully indemnified and timely satisfied by Evolus hereunder and (5) has been consented to in writing by such Contributor, which consent shall not be unreasonably withheld.  In the event that Evolus fails to timely provide the Defense Notice, declines to control a Tax Matter described in a Tax Matter Notice, breaches any provision of this Agreement in any material respect or ends its control of such a Tax Matter, the Contributor whom is subject of the Tax Matter may assume control with counsel of its choosing (and shall have complete and sole discretion with respect thereto, including as to settlement, compromise, consent to judgment or other resolution thereof, or extension or waiver of any limitations period or applicable thereto, or any other action affecting such Tax Matter) and Evolus shall be responsible for and promptly pay upon request all out of pocket Defense Costs incurred from time to time by such Contributor or the Contributors’ Representative related to such Tax Matter that are reasonably documented and submitted to Evolus.
Section 3.2    Cooperation Regarding Tax Matters. The Parties shall cooperate fully, as and to the extent reasonably requested by any other Party, in connection with any Tax Matter.  Such cooperation shall include the retention and (upon any other Party’s request) the provision of records and information reasonably relevant to any Tax Matter or filing of Tax Returns and making employees and other personnel available on a mutually convenient basis to provide additional information and explanation of any material provided hereunder.  The Parties agree to retain all books and records with respect to taxes as may be pertinent to any Tax Matter.  

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Section 3.3    Tax Returns.  Each Contributor shall prepare or cause to be prepared, and shall timely file or cause to be timely filed (taking into account any applicable extensions), all Tax Returns required to be filed by such Contributor, for the taxable year in which the Assumption occurs and each subsequent taxable year.  Each Contributor shall pay (or cause to be paid), promptly and when due, whether at the original time fixed therefor or pursuant to any extension of time to pay, any and all Taxes that are due and payable as shown on any such Tax Returns, taking into account the provisions of Section 3.4 hereof.  For purposes of this Section 3.3, any Taxes relating to amounts reflected in any IRS Form 1099 or IRS Form W-2 (or any corresponding state or local tax form) issued to a Contributor for a taxable year shall be deemed to be shown as due and payable on the applicable income Tax Return(s) of the Contributor for such taxable year regardless of whether such Taxes are actually shown as due and payable thereon.  Notwithstanding the foregoing, a Contributor shall not be deemed to have breached this Section 3.3 if its failure to so comply is a result of either (i) SCH delivering completed Schedule K-1s to such Contributor less than 30 days prior to the last applicable Tax Return filing extension allowed to such Contributor or (ii) Evolus delivering all required information returns related to payments under the SPA (as amended by the SPA Amendment) less than 30 days prior to the last applicable Tax Return filing extension allowed to such Contributor. 
Section 3.4    Consistent Reporting.  Notwithstanding any provision of this Agreement to the contrary, unless otherwise required by a Final Determination, the Parties to this Agreement shall not take any position in any Tax Return or other document or communication submitted to any Taxing Authority inconsistent with the continued application of Installment Sale Reporting with respect to the Contingent Payments following the Assumption, including for the avoidance of doubt and without limitation any position that the Assumption constitutes a “payment” within the meaning of Regulations Section 15A.453-1(b)(3)(i) (or any position to a similar effect).
Section 3.5    Withholding.  Evolus shall be entitled to deduct and withhold (or cause to be deducted and withheld) from any payments contemplated by this Agreement such amount, if any, as Evolus determines in good faith is required to be deducted and withheld with respect to the making of such payment under applicable law, and to collect any necessary Tax forms for avoiding such withholding, including without limitation IRS Form W-9, or any similar information, from the Contributors, the Contributors’ Representative, and any other recipient of any payment hereunder.  To the extent that amounts are so withheld (or caused to be withheld), such withheld amounts shall be treated for all purposes as having been paid to the Contributors or such other recipient, as applicable, in respect of which such deduction and withholding was made.
ARTICLE 4
GENERAL PROVISIONS
Section 4.1    Notices.  All notices, consents, waivers and other communications required or permitted by this Agreement shall be in writing and shall be deemed given to a party when (a) delivered to the appropriate address by hand or by nationally recognized overnight courier service (costs prepaid); (b) sent by facsimile or e-mail, with confirmation of transmission; or (c) received or rejected by the addressee, if sent by certified mail, return receipt requested, in each case to the following addresses, facsimile numbers or e-mail addresses and marked to the attention of the person (by 

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name or title) designated below (or to such other address, facsimile number, e-mail address or person as a party may designate by notice to the other parties):
	
			
	 
	Contributors or
	 

	 
	Contributors’
	 

	 
	Representative:
	1270 Via Brigitte

	 
	 
	Santa Barbara, CA 93111

	 
	 
	Attention: J. Christopher Marmo

	 
	 
	E-mail: j.chrismarmo@gmail.com

	 
	 
	 

	 
	With a copy to:
	Irell & Manella LLP

	 
	 
	1800 Avenue of the Stars, Suite 900

	 
	 
	Los Angeles, CA 90067

	 
	 
	Attention: Elliot Freier, Esq. and Michael Kaplan, Esq.

	 
	 
	Fax: (310) 203-7199

	 
	 
	Email: efreier@irell.com; mkaplan@irell.com

	 
	 
	 

	 
	Evolus:
	Evolus Inc.

	 
	 
	17901Von Karman Ave, Suite 150

	 
	 
	Irvine, CA 92614

	 
	 
	Attention: Murthy Simhambhatla

	 
	 
	E-mail: murthy.simhambhatla@evolus.com

	 
	 
	 

	 
	with a copy to:
	K&L Gates LLP

	 
	 
	1 Park Plaza

	 
	 
	Irvine, CA 92614

	 
	 
	Attention: Frank W. Dworak, Esq.

	 
	 
	Fax:  (949) 253-0902

	 
	 
	E-mail address: frank.dworak@klgates.com

Section 4.2    Jurisdiction; Service of Process.  Any proceeding arising out of or relating to this Agreement may be brought in the courts of the State of California, County of Orange, or in the United States District Court for the Central District of California, and each of the parties irrevocably submits to the exclusive jurisdiction of each such court in any such proceeding, waives any objection it may now or hereafter have to venue or to convenience of forum, agrees that all claims in respect of the proceeding shall be heard and determined only in any such court and agrees not to bring any proceeding arising out of or relating to this Agreement in any other court. The Parties agree that any or all of them may file a copy of this paragraph with any court as written evidence of the knowing, voluntary and bargained agreement among the Parties irrevocably to waive any objections to venue or to convenience of forum. Process 

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in any proceeding referred to in the first sentence of this section may be served on any Party anywhere in the world.
Section 4.3    Enforcement of Agreement.  Each Party hereto acknowledges and agrees that the other Parties would be irreparably damaged if any of the provisions of this Agreement are not performed in accordance with their specific terms and that any breach of this Agreement could not be adequately compensated in all cases by monetary damages alone.  Accordingly, in addition to any other right or remedy to which such Party may be entitled, at law or in equity, such Party shall be entitled to enforce any provision of this Agreement by a decree of specific performance and to temporary, preliminary and permanent injunctive relief to prevent breaches or threatened breaches of any of the provisions of this Agreement, without posting any bond or other undertaking.
Section 4.4    Waiver; Remedies Cumulative.  The rights and remedies of the Parties to this Agreement are cumulative and not alternative. Neither any failure nor any delay by any Party in exercising any right, power or privilege under this Agreement or any of the documents referred to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement or any of the documents referred to in this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in writing signed by the other Party; (b) no waiver that may be given by a Party will be applicable except in the specific instance for which it is given; and (c) no notice to or demand on one Party will be deemed to be a waiver of any obligation of that Party or of the right of the Party giving such notice or demand to take further action without notice or demand as provided in this Agreement or the documents referred to in this Agreement.
Section 4.5    Entire Agreement and Modification.  This Agreement supersedes all prior agreements, whether written or oral, between the Parties with respect to the subject matter hereof and together with the SPA (as amended) constitutes a complete and exclusive statement of the terms of the agreement between the Parties with respect to the subject matter hereof. This Agreement may not be amended, supplemented, or otherwise modified except by a written agreement executed by Evolus and the Contributors’ Representative, on behalf of the Contributors.
Section 4.6    Assignments, Successors and No Third Party Rights.  No Party may assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of the other Parties, except that Evolus may assign any of its rights and delegate any of its obligations under this Agreement to any subsidiary of Evolus, provided that Evolus fully and unconditionally guarantees the performance of such assignee pursuant to documentation in form and substance satisfactory to Contributors’ Representative in its sole discretion.  Subject to the preceding sentence, this Agreement will apply to, be binding in all respects upon and inure to the benefit of the successors and permitted assigns of the Parties. Nothing expressed or referred to in this Agreement will be construed to give any person other than the Parties to this Agreement any legal or equitable right, remedy or claim under 

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or with respect to this Agreement or any provision of this Agreement, except such rights as shall inure to a successor or permitted assignee pursuant to this Section.
Section 4.7    Severability.  If any provision of this Agreement is held invalid or unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall remain in full force and effect. Any provision of this Agreement held invalid or unenforceable only in part or degree will remain in full force and effect to the extent not held invalid or unenforceable.  Upon such determination that any term or other provision of this Agreement is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.
Section 4.8    Time of Essence.  With regard to all dates and time periods set forth or referred to in this Agreement, time is of the essence.
Section 4.9    Governing Law.  This Agreement has been entered into in the State of California and shall be construed and enforced, along with any rights, remedies, or obligations provided for hereunder, in accordance with the laws of the State of California without giving effect to its principles of choice of law or conflicts of law.
Section 4.10    Execution of Agreement.  This Agreement may be executed in one or more counterparts, each of which will be deemed to be an original copy of this Agreement and all of which, when taken together, shall be deemed to constitute one and the same agreement. The exchange of copies of this Agreement and of signature pages by facsimile transmission or e-mail shall constitute effective execution and delivery of this Agreement as to the parties and may be used in lieu of the original Agreement for all purposes. Signatures of the Parties transmitted by facsimile or e-mail shall be deemed to be their original signatures for all purposes.
Section 4.11    Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.    
Section 4.12    Contributors’ Representative.  The Contributors hereby constitute and appoint J. Christopher Marmo as their representative and their true and lawful attorney in fact, with full power and authority in each of their names and on behalf of each of them to act on behalf of each of them in the absolute discretion of the Contributors’ Representative with respect to any matter as to which the Contributors have obligations under this Agreement. This appointment and grant of power and authority is coupled with an interest and is in consideration of the mutual covenants made herein and is irrevocable and shall not be terminated by any act of the Contributors or by operation of law, whether by the death or incapacity of a Contributor or by the occurrence of any other event. Each Contributor hereby consents to the taking of any and all actions and the making of any decisions required or permitted to be taken or made by the Contributors’ Representative under this Agreement. Each of the Contributors agrees that the Contributors’ Representative shall have no obligation or liability to any person for any action or omission taken or omitted by the Contributors’ Representative in good faith hereunder, and each Contributor shall indemnify and hold the Contributors’ Representative harmless from and against any and all loss, damage, 

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expense or liability (including reasonable counsel fees and expenses) which the Contributors’ Representative may sustain as a result of any such action or omission by the Contributors’ Representative hereunder in respect of such Contributor.  Evolus shall be entitled to rely upon any document or other paper delivered by the Contributors’ Representative as (a) genuine and correct and (b) having been duly signed or sent by the Contributors, and Evolus shall not be liable to any of the Contributors for any action taken or omitted to be taken by Evolus in such reliance.
[signatures appear on the following page]

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

	
			
	Evolus:
	EVOLUS, INC., a Delaware corporation

	 
	 

	 
	By:
	/s/ Murthy Simhambhatla

	 
	Name: Murthy Simhambhatla

	 
	Title: CEO

	 
	 

	Contributors’ Representative:
	/s/ J. Christopher Marmo

	 
	J. Christopher Marmo

	 
	 

	Contributors
	/s/ J. Christopher Marmo

	 
	Name: J. Christopher Marmo

	 
	 

	 
	/s/ Scott Cannizzaro

	 
	Name: Scott Cannizzaro

	 
	 

	 
	/s/ Gordon Crawford

	 
	Name: Gordon Crawford

	 
	 

	 
	/s/ John Gross

	 
	Name: John Gross

Signature Page to Tax Indemnity Agreement

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