* Certain information in this exhibit has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to
omitted portions.

FIRST AMENDMENT TO PROMOTION AGREEMENT

                         This FIRST AMENDMENT TO PROMOTION AGREEMENT (the
“Amendment”) is made as of June 27, 2002, by and between QUESTCOR
PHARMACEUTICALS, INC., a California Corporation (“Questcor”), and VSL
PHARMACEUTICALS, INC., a Delaware corporation(“VSL”).

RECITALS

            A.     WHEREAS, Questcor and VSL have entered into that certain
Promotion Agreement dated as of December 1, 2001(the “Agreement”); and

             B.     WHEREAS, the parties desire to modify the Agreement in
certain respects and to clarify certain of their obligations thereunder and have
agreed to enter into the following Amendment to the Agreement.

AGREEMENT

                      NOW, THEREFORE, in consideration of the mutual covenants
and agreements set forth herein and for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties agree as
follows:

 

A.        Definitions.  Capitalized terms used in this Amendment but not
otherwise defined shall have the meanings specified in the Agreement, unless the
context requires otherwise.

 

 

 

 

 

 

 

B.        Certain Amendments.  The Agreement is hereby amended, supplemented or
modified, as the case may be, as indicated below:

 

 

 

 

 

 

  (a)         The definition of “Incremental Expense Forecast” is hereby added 
to Section 1 and shall read, “has the meaning set forth in Section 5(a) hereof.”

 

 

 

 

 

  (b)         The definition of “Incremental Expenses” is hereby added to
Section 1  and shall read, “has the meaning set forth in Section 4(c) hereof.”

 

 

 

 

 

  (c)         The definition of “Prepaid Reimbursement” is hereby deleted in its
entirety.

 

 

 

 

 

  (d)         Section 4(c) is amended in its entirety and shall read, “(i) In
addition to  the Quarterly Net Sales Commission, Questcor shall also deduct a
quarterly reimbursement fee (the “Quarterly Reimbursement”) from the Quarterly
Net Sales Payment.  The Quarterly Reimbursement shall be calculated in
accordance with the following schedule:

 

 

 

 

 

•

* of  Net Sales for Net Sales up to *

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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•

* of  Net Sales for Net Sales between  * and *; and

 

 

 

 

 

 

 

 

•

* of Net Sales for Net Sales over *.

 

 

 

 

 

 

 

 

 

(ii)         Notwithstanding the foregoing, in no event shall the Quarterly
Reimbursement be less than Questcor’s documented incremental cost of engaging in
all of the activities and obligations described in Sections2(c), 2(g), and 3(e)
of this Agreement, including, but not limited to, all documented incremental
costs and expenses of all personnel and facilities used in connection with such
activities and obligations (the “Incremental Expenses”), provided, however, that
the Incremental Expenses shall be agreed upon in advance in accordance with
Section 5(a)(iii) of this Agreement.  The Incremental Expenses shall also
include Questcor’s cost of purchasing the product (that is to say the actual
amount paid by Questcor and already received by VSL for the purchasing of the
Product) and shipping the Product, as applicable, as described in Section 2(e). 
In the event that the Quarterly Reimbursement is less than the Incremental
Expenses for any Agreement Quarter, then VSL shall submit payment to Questcor in
an amount equal to the difference between the Quarterly Reimbursement and the
Incremental Expenses (such Incremental Expenses to be agreed upon in advance in
accordance with Section 5(a)(iii) of this Agreement) on a monthly basis through
September 30, 2002, and after such date, within 30 days of the end of each
Agreement Quarter.”

 

 

 

 

 

 

(e)      Section 4(d) is amended in its entirety and shall read, “VSL shall pay
Questcor a one-time up-front reimbursement payment in the amount of * not later
than July 31, 2002.”

 

 

 

 

 

(f)      Section 5(a) is amended in its entirety and shall read, “Questcor shall
furnish VSL, within 30 days after the end of each Agreement Quarter (within 60
days after the end of each Agreement Year), a report setting forth in reasonable
detail the following (in each case with respect to each Agreement Quarter and,
in addition to a report for the fourth Agreement Quarter, with respect to the
entire Agreement Year): (i) the calculation of Net Sales for the Agreement
Quarter, (ii) the calculation of the Quarterly Net Sales Payment, the Quarterly
Net Sales Commission and the Quarterly Reimbursement, and (iii) a description of
Questcor’s yearly forecast of the Incremental Expenses updated quarterly (the
“Incremental Expense Forecast”) to be mutually agreed upon in good faith by
Questcor and VSL.  With respect to clause (iii) of the preceding sentence,
Questcor and VSL shall meet not later than July 31, 2002 to establish a specific
process for reaching mutual agreement on the Incremental Expenses and for
resolving any disputes regarding Incremental Expenses.  Questcor and VSL
acknowledge that for the period of March 1, 2002 through June 30, 2002, the
Incremental Expenses for such period are at least * with additional

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

2

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disputed Incremental Expenses for such period in the amount of * to be mutually
agreed upon in good faith by Questcor and VSL”

 

 

 

 

 

C.                   No Further Modification.  Except as expressly provided in
this Amendment, the Agreement remains unmodified and in full force and effect in
accordance with its terms.

 

 

D.                   Counterparts; Governing Law.  This Amendment may be
executed in one or more counterparts, each of which shall be deemed an original,
and all of which, taken together, shall constitute one and the same instrument;
and this Amendment shall be governed by the laws of the State of New York.

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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                        IN WITNESS WHEREOF, Questcor and VSL have executed this
Amendment as of the day and year first above written.

QUESTCOR PHARMACEUTICALS, INC.,

 

VSL PHARMACEUTICALS, INC.,

 

a California corporation

 

a Delaware corporation

 

 

 

 

 

By:

/s/ KENNETH R. GREATHOUSE

 

By:

/s/ MAURO BOVE

 

 

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--------------------------------------------------------------------------------

 

Name:

Kenneth R. Greathouse

 

Name:

Mauro Bove

 

 

--------------------------------------------------------------------------------

 

 

--------------------------------------------------------------------------------

 

Title:

Vice President, Commercial Operations

 

Title:

 

 

 

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