Exhibit 10.1


 


EXECUTION COPY


 





Confidential Materials Omitted and Filed
Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the
Securities Act of 1933, as amended. Confidential Portions are marked: [***]







 


ASSET PURCHASE AGREEMENT


 


between


 


CRANFORD PHARMACEUTICALS, LLC


 


and


 


ANI PHARMACEUTICALS, INC.


 


DATED AS OF FEBRUARY 23, 2017


 







     


    
Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]



    









 


TABLE OF CONTENTS


  


	 	Page
	 	 
	Article I DEFINITIONS AND TERMS	1
	 	 	 
	Section 1.1	Definitions	1
	 	 	 
	Section 1.2	Other Definitional and Interpretive Provisions	9
	 	 	 
	Article II PURCHASE AND SALE	10
	 	 	 
	Section 2.1	Purchase and Sale of Assets	10
	 	 	 
	Section 2.2	Consents	11
	 	 	 
	Section 2.3	Excluded Assets	11
	 	 	 
	Section 2.4	Assumption of Liabilities	12
	 	 	 
	Section 2.5	Retained Liabilities	13
	 	 	 
	Section 2.6	Purchase Price	14
	 	 	 
	Section 2.7	Purchase Price Adjustment	15
	 	 	 
	Article III CLOSING	17
	 	 	 
	Section 3.1	Closing	17
	 	 	 
	Article IV REPRESENTATIONS AND WARRANTIES OF SELLER	19
	 	 	 
	Section 4.1	Organization	19
	 	 	 
	Section 4.2	Authority; Binding Effect	19
	 	 	 
	Section 4.3	No Conflicts; Consents	20
	 	 	 
	Section 4.4	Governmental Authorization	20
	 	 	 
	Section 4.5	Absence of Material Changes	20
	 	 	 
	Section 4.6	No Litigation	20
	 	 	 
	Section 4.7	Compliance with Laws	20
	 	 	 
	Section 4.8	Regulatory Compliance	21
	 	 	 
	Section 4.9	Intellectual Property	21
	 	 	 
	Section 4.10	Assets	22
	 	 	 
	Section 4.11	Taxes	23
	 	 	 
	Section 4.12	Contracts	23
	 	 	 
	Section 4.13	Financial Statements	26
	 	 	 
	Section 4.14	Suppliers and Customers	26
	 	 	 
	Section 4.15	Brokers	27
	 	 	 
	Section 4.16	Inventories	27


 




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    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


TABLE OF CONTENTS
(cont’d)


 


	 	 	Page
	 	 	 
	Section 4.17	Ordinary Course	27
	 	 	 
	Section 4.18	Base Period AMP	27
	 	 	 
	Section 4.19	No Other Representations or Warranties	27
	 	 	 
	Article V REPRESENTATIONS AND WARRANTIES OF PURCHASER	28
	 	 	 
	Section 5.1	Organization and Qualification	28
	 	 	 
	Section 5.2	Corporate Authorization	28
	 	 	 
	Section 5.3	Binding Effect	28
	 	 	 
	Section 5.4	No Conflict; Consents	29
	 	 	 
	Section 5.5	Governmental Authorization	29
	 	 	 
	Section 5.6	Financing	29
	 	 	 
	Section 5.7	Compliance with Laws	29
	 	 	 
	Section 5.8	Condition of the Purchased Assets	30
	 	 	 
	Section 5.9	Litigation	31
	 	 	 
	Section 5.10	Brokers	31
	 	 	 
	Section 5.11	Solvency	31
	 	 	 
	Article VI COVENANTS	31
	 	 	 
	Section 6.1	Information and Documents	31
	 	 	 
	Section 6.2	Conduct	32
	 	 	 
	Section 6.3	Member Approvals; Efforts to Consummate Generally	33
	 	 	 
	Section 6.4	Bulk Transfer Laws	34
	 	 	 
	Section 6.5	Insurance	34
	 	 	 
	Section 6.6	Trade Notification	34
	 	 	 
	Section 6.7	Seller-Labeled Product	34
	 	 	 
	Section 6.8	NDC Numbers	35
	 	 	 
	Section 6.9	No-Shop	36
	 	 	 
	Section 6.10	Certain Regulatory Matters	37


 




    -ii- 


    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


TABLE OF CONTENTS
(cont’d)


 


	 	 	Page
	 	 	 
	Section 6.11	Confidentiality	37
	 	 	 
	Section 6.12	Know-How License	38
	 	 	 
	Section 6.13	Correspondence	38
	 	 	 
	Section 6.14	Pharmacovigilance	38
	 	 	 
	Section 6.15	[Reserved]	38
	 	 	 
	Section 6.16	Certain Financial Information	38
	 	 	 
	Section 6.17	Wrong-Pocket Assets	39
	 	 	 
	Section 6.18	Consultation and Cooperation	39
	 	 	 
	Article VII NON-COMPETE	39
	 	 	 
	Section 7.1	Non-Compete	39
	 	 	 
	Article VIII CONDITIONS TO CLOSING	40
	 	 	 
	Section 8.1	Conditions to the Obligations of Purchaser and Seller	40
	 	 	 
	Section 8.2	Conditions to the Obligations of Purchaser	40
	 	 	 
	Section 8.3	Conditions to the Obligations of Seller	41
	 	 	 
	Section 8.4	Frustration of Closing Conditions	41
	 	 	 
	Article IX INDEMNIFICATION	41
	 	 	 
	Section 9.1	Indemnification by Seller	41
	 	 	 
	Section 9.2	Indemnification by Purchaser	42
	 	 	 
	Section 9.3	Notice of Direct Claims	42
	 	 	 
	Section 9.4	Third Party Claims	43
	 	 	 
	Section 9.5	Expiration	45
	 	 	 
	Section 9.6	Limitations on Indemnification and other Matters	45
	 	 	 
	Section 9.7	Losses Net of Insurance, Etc.	46
	 	 	 
	Section 9.8	Reimbursement	46
	 	 	 
	Section 9.9	Subrogation	47
	 	 	 
	Section 9.10	Sole Remedy/Waiver	47


 




    -iii- 


    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


TABLE OF CONTENTS
(cont’d)


 


	 	Page
	 	 
	Article X TERMINATION	47
	 	 	 
	Section 10.1	Termination	47
	 	 	 
	Section 10.2	Effect of Termination	48
	 	 	 
	Article XI MISCELLANEOUS	48
	 	 	 
	Section 11.1	Notices	48
	 	 	 
	Section 11.2	Amendment; Waiver	50
	 	 	 
	Section 11.3	Assignment	50
	 	 	 
	Section 11.4	Entire Agreement	50
	 	 	 
	Section 11.5	Parties in Interest	50
	 	 	 
	Section 11.6	Public Disclosure	50
	 	 	 
	Section 11.7	Return of Information	50
	 	 	 
	Section 11.8	Expenses, Transfer Taxes and Property Taxes	51
	 	 	 
	Section 11.9	Schedules	51
	 	 	 
	Section 11.10	Governing Law; Jurisdiction	51
	 	 	 
	Section 11.11	WAIVER OF JURY TRIAL	52
	 	 	 
	Section 11.12	Counterparts	52
	 	 	 
	Section 11.13	Headings	52
	 	 	 
	Section 11.14	Severability	53
	 	 	 
	Section 11.15	Specific Performance	53
	 	 	 
	Section 11.16	Non-Recourse	53
	 	 	 
	Section 11.17	Conflict of Interest	54


 




    -iv- 


    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


EXHIBITS


 


	Exhibit A	Form of Bill of Sale
	Exhibit B	Form of Services Agreement
	Exhibit C	Matters to be Addressed by the Side Letter


 


SCHEDULES OTHER THAN DISCLOSURE SCHEDULES


 


	1.1	Affiliate Agreements
	1.1(a)	Purchased Inventory
	1.1(b)(i)	Knowledge of Purchaser 
	1.1(b)(ii)	Knowledge of Seller
	1.1(c)	Permitted Encumbrances
	1.1(d)	Product
	1.1(e)	Certain Specified Purchased Documents
	1.1(f)	Required Third Party Consents
	2.1(a)	Assumed Contracts
	2.7(a)	Form of Closing Statement


 









    -v- 


    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


ASSET PURCHASE AGREEMENT


 


This Asset Purchase Agreement
is made and entered into as of the 23rd day of February 2017, by and between Cranford Pharmaceuticals, LLC, a Delaware limited
liability company (“Seller”) and ANI Pharmaceuticals, Inc., a corporation organized under the laws of Delaware
(“Purchaser”).


 


RECITALS


 


WHEREAS, Seller holds
the rights to manufacture, market, sell and distribute the Product in the Territory (the “Business”); and


 


WHEREAS, Seller desires
to sell, transfer and assign to Purchaser, and Purchaser desires to acquire and assume from Seller, all of the Purchased Assets
and Assumed Liabilities, all as more specifically provided herein.


 


NOW, THEREFORE,
in consideration of the foregoing and the representations, warranties, covenants and agreements contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:


 


Article
I



DEFINITIONS AND TERMS


 


Section
1.1           Definitions. As used in this Agreement, the
following terms shall have the meanings set forth or as referenced below:


 


“Acquisition Proposal”
shall have the meaning set forth in Section 6.9.


 


“Affiliate”
means with respect to any Person, any other Person directly or indirectly controlling, controlled by, or under common control with,
such Person at any time during the period for which the determination of affiliation is being made. Without limitation, Mist, Holmdel
Pharmaceuticals, LP, and Akrimax shall each be deemed for all purposes hereunder an Affiliate of Seller. Solely for purposes of
Section 6.11 and Section 7.1, Cranford Therapeutics LLC and its respective Affiliates shall be deemed Affiliates
of Seller.1


 


“Affiliate Agreements”
means those agreements listed on Schedule 1.1.


 


“Agreement”
means this Asset Purchase Agreement.


 


“Akrimax”
means Akrimax Pharmaceuticals, LLC.


 


“AMP”
means the average manufacturer price, as defined at 42 U.S.C. § 1396r-8(k)(1) and 42 C.F.R. § 447.500 et seq.


 





 



 




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    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


“Ancillary Agreements”
means, collectively, the Services Agreement, Bill of Sale, assignments of Assumed Contracts, assumption agreements or other instruments
evidencing the assumption by Purchaser of the Assumed Liabilities, and each other agreement, document, instrument and/or certificate
contemplated by this Agreement to be executed by Purchaser or Seller in connection with the transactions contemplated hereby.


 


“Assumed Contracts”
shall have the meaning set forth in Section 2.1(a).


 


“Assumed Liabilities”
shall have the meaning set forth in Section 2.4(a).


 


“Audited Financial
Statements” shall have the meaning set forth in Section 4.13(a).


 


“Bankruptcy and
Equity Exception” shall have the meaning set forth in Section 4.2(b).


 


“Bill of Sale”
means a bill of sale, dated as of the Closing Date, in the form set forth as Exhibit A hereto.


 


“Business”
shall have the meaning set forth in the Recitals.


 


“Business Day”
means any day other than a Saturday, a Sunday or a day on which commercial banks in New York City are authorized or obligated by
applicable law or executive order to close.


 


“Cap”
shall have the meaning set forth in Section 9.6(c).


 


“Challenged Amount”
shall have the meaning set forth in Section 2.7(e).


 


“Closing”
means the closing of the transactions contemplated by this Agreement pursuant to the terms of this Agreement.


 


“Closing Date”
shall have the meaning set forth in Section 3.1(a).


 


“Closing Date Inventory
Value” means the aggregate value of all the Purchased Inventory, determined on the basis of the Seller's cost basis in
such Inventories, up to a maximum of [***]; provided, however, that the cost basis of any Purchased Inventories that
are damaged, defective or otherwise not saleable in the ordinary course of business on customary terms shall be excluded from the
calculation of Closing Date Inventory Value.


 


“Code”
means the Internal Revenue Code of 1986, as amended, from time to time.


 


“Collateral Source”
shall have the meaning set forth in Section 9.7.


 


“Competing Business”
shall have the meaning set forth in Section 7.1.


 




    		-2-	 



    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


“Confidential Information”
shall have the meaning set forth in the Confidentiality Agreement.


 


“Confidentiality
Agreement” means the Confidentiality Agreement between Seller and Purchaser, dated February 16, 2017, as amended or supplemented
from time to time.


 


“Contract”
means any binding contract, agreement, lease, license or commitment.


 


“Copyrights”
shall have the meaning set forth in the definition for Intellectual Property.


 


“Covered Proceeds”
shall have the meaning set forth in Section 2.1(h).


 


“[***]”
means [***].


 


“Dentons”
shall have the meaning set forth in Section 11.17(b).


 


“Distribution Activities”
shall have the meaning set forth in Section 6.8(d).


 


“Excluded Assets”
shall have the meaning set forth in Section 2.3.


 


“Excluded Inventory”
means the Inventory which is not Purchased Inventory.


 


“Exploitation”
(including, with correlative meanings, the terms “Exploit” and “Exploited”) means developing,
commercializing, manufacturing, labeling, packaging, marketing, promoting, selling, distributing and/or transporting.


 


“FDA Act”
means the Food, Drug and Cosmetics Act of 1938, as amended, supplemented or replaced.


 


“Final Inventory
Value” shall have the meaning set forth in Section 2.7(d).


 


“Financial Statements”
shall have the meaning set forth in Section 4.13(b).


 


“Fundamental Representations”
shall have the meaning set forth in Section 9.5.


 


“GAAP”
means United States generally accepted accounting principles, consistently applied.


 


“Governmental Authority”
means any supranational, national, federal, state or local or foreign judicial, legislative, executive or regulatory authority.


 


“Governmental Authorizations”
means all licenses, permits, certificates and other authorizations and approvals pertaining to the Product under the applicable
Laws of any Governmental Authority.


 


“Governmental Order”
means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any Governmental Authority.


 




    		-3-	 



    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


“Gross Profit”
means the amount equal [***].


 


“Indemnity Notice”
shall have the meaning set forth in Section 9.3(a).


 


“Indemnified Party”
shall have the meaning set forth in Section 9.3(a).


 


“Indemnifying Party”
shall have the meaning set forth in Section 9.3(a).


 


“Indemnity Threshold”
shall have the meaning set forth in Section 9.6(b).


 


“Independent Accountant”
shall have the meaning set forth in Section 2.6(c).


 


“Intellectual Property”
means any and all worldwide rights in, arising from or associated with the following, whether protected, created or arising under
the Laws of the United States or any other jurisdiction or under any international convention: (1) all trade secrets and other
proprietary information which derives independent economic value from not being generally known to the public (collectively, “Trade
Secrets”); (2) all copyrights, copyrights registrations and applications therefor (“Copyrights”);
(3) all uniform resource locators, e-mail and other internet addresses and domain names and applications and registrations therefor
(“URLs”); and (6) any similar, corresponding or equivalent rights to any of the foregoing anywhere in the world.


 


“Inventories”
means all inventory of finished goods Product and all samples of Product owned by Seller or Mist on the Closing Date.


 


“Inventory Excess
Amount” shall have the meaning set forth in Section 2.7(g)(ii).


 


“Inventory Shortfall
Amount” shall have the meaning set forth in Section 2.7(g)(i).


 


“Knowledge of Purchaser”
means the actual knowledge any of the individuals listed on Schedule 1.1(b)(i) has or would have following reasonable inquiry
into the subject matter in the ordinary course of performing each of their respective duties.


 


“Knowledge of Seller”
means the actual knowledge any of the individuals listed on Schedule 1.1(b)(ii) has or would have following reasonable inquiry
into the subject matter in the ordinary course of performing each of their respective duties.


 


“Laws”
means any federal, state, foreign or local law, common law, statute, ordinance, rule, regulation, code or Governmental Order.


 


“Liabilities”
means any and all Losses, debts, liabilities and obligations, whether accrued or unaccrued, fixed, known or unknown, absolute or
contingent, matured or unmatured or determined or determinable, including all costs and expenses relating thereto.


 


“Licensed Intellectual
Property” shall have the meaning set forth in Section 4.9(b)(i).


 




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    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


“Licensed Know-How”
shall have the meaning set forth in Section 6.12.


 


“Liens”
means any lien, security interest, mortgage, pledge, assessment, hypothecation, easement, title retention clause, title defect,
right of first refusal, charge or similar encumbrance.


 


“Loss”
or “Losses” means any liabilities, losses, damages, fines or penalties that are suffered or sustained, or that
have required an outlay or payment of cash or other non-cash consideration, whether resulting from a judgment, a settlement or
an award, including those arising out of any Proceeding, Law or Contract, including the Taxes, costs and expenses (including reasonable
fees and expenses of counsel, consultants, experts, and other professional fees) associated therewith.


 


“Lowenstein”
shall have the meaning set forth in Section 11.17(a).


 


“Material Adverse
Effect” means any event, fact, condition, occurrence, change or effect that is or would reasonably be expected to be
materially adverse to the Exploitation of the Product or the Purchased Assets, taken as a whole; provided, however,
that none of the following shall be deemed, either alone or in combination, to constitute a Material Adverse Effect, or be taken
into account in determining whether there has or will be a Material Adverse Effect: (a) changes in political or economic conditions
(including changes in interest or exchange rates) in any country in which Purchased Assets are located or in which the Business
operates, or in the securities, syndicated loan, credit or financial markets of any such country; (b) changes in general market
conditions affecting the Exploitation of the Product in general or within the United States; (c) changes in GAAP; (d) changes or
effects that arise out of or are attributable to the acts or omissions of, or circumstances affecting, Purchaser and/or its Affiliates;
(e) changes or effects that generally affect the markets in which the Product is Exploited; (f) changes or effects that arise out
of or are attributable to the commencement, occurrence, continuation or intensification or reduction or cessation of any war (whether
or not declared), sabotage, armed hostilities or acts of terrorism; (g) changes or effects that arise out of or are attributable
to earthquakes, hurricanes or other natural disasters, epidemics or other outbreaks of disease; (h) changes or effects that relate
to any failure by Seller to meet internal projections or forecasts for any period (including with respect to the Purchased Assets
or Product), or that arise out of or are attributable to market conditions with respect to the Product, including the availability
of generic alternatives or alternative therapies and treatments; and (i) any action taken by Seller as required by this Agreement
or with Purchaser’s consent, except, in the case of clauses (a), (b), (c), (e) and (f),
for those changes or effects that have a disproportionate impact on the Exploitation of the Product relative to other comparable
pharmaceutical product.


 


“Mist”
means Mist Pharmaceuticals, LLC.


 


“NDC Number”
means the unique 10-digit, 3-segment number assigned by the U.S. Food & Drug Administration to each human drug processed for
commercial distribution, which number is published in the NDC Directory pursuant to Section 510 of the FDA Act.


 




    		-5-	 



    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


“Net Sales”
means the gross amount received by Seller or Subsidiary of Seller, as applicable, for sales of the Product (other than applicable,
sales, use or VAT Taxes), less the deductions taken by the Seller or an Affiliate or Subsidiary of Seller, as applicable, with
respect to such sales in accordance with GAAP:


 


(i)          [***];


 


(ii)         [***];


 


(iii)        [***];
and


 


(iv)        [***].


 


Notwithstanding the foregoing,
sales of Product for patient assistance programs, research or development or complimentary samples shall not be deemed “sales”
for purposes of calculating Net Sales.


 


“Non-Compete Period”
has the meaning set forth in Section 7.1.


 


“NonFAMP Eligible
Transactions” means those transactions relating to a Product that are used to calculate the Non-Federal Average Manufacturer
Price as defined by Veteran’s Health Care Act of 1992.


 


“Objection Notice”
shall have the meaning set forth in Section 2.7(c).


 


“Outside Date”
shall have the meaning set forth in Section 10.1(b).


 


“Owned Intellectual
Property” shall have the meaning set forth in Section 4.9(a).


 


“Party”
means each of Purchaser and Seller.


 


“Permitted Encumbrances”
means (i) statutory Liens arising by operation of Law with respect to a Liability incurred in the ordinary course of business and
which is not delinquent; (ii) Liens for Taxes not yet subject to penalties for nonpayment or that are being contested in good faith
by appropriate proceedings; (iii) mechanics’, materialmens’, carriers’, workmens’, warehousemens’,
repairmens’, landlords’ or other like Liens and security obligations that are not delinquent; (iv) Liens set forth
on Schedule 1.1(c) hereto, all of which will be released and, as appropriate, removed of record, at or prior to the Closing
Date in accordance with the terms of this Agreement; and (v) Liens arising under this Agreement.


 


“Person”
means an individual, a limited liability company, joint venture, a corporation, a partnership, an association, a trust, a division
or operating group of any of the foregoing or any other entity or organization.


 


“Post-Closing Tax
Period” means any Tax period (or portion thereof) beginning after the Closing Date.


 




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    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


“Pre-Closing Tax
Period” means any Tax period (or portion thereof) ending on or before the Closing Date.


 


“Proceeding”
means any claim, action, arbitration, mediation, hearing, proceeding, suit, warning letter, or notice of violation.


 


“Product”
means the Product listed on Schedule 1.1(d) hereto.


 


“Property Taxes”
shall have the meaning set forth in Section 11.8(b).


 


“Purchased Assets”
shall have the meaning set forth in Section 2.1, it being understood that the Purchased Assets do not include the Excluded
Assets.


 


“Purchased Documents”
means originals, or if originals are unavailable, copies of all books, records, files and papers, whether in hard copy or computer
format, to the extent related to the Product (including with respect to research and development, medical safety or regulatory
affairs), including (i) all documents, if any, relating to the calculation of baseline AMP (but excluding any proprietary methodology
documents created by Seller or any of its Affiliates with respect to the calculation of baseline AMP), (ii) an electronic version
of the Product’s Medical Information Inquiry Database and the documents set forth in Schedule 1.1(e), (iii) any and
all regulatory files (including correspondence with regulatory authorities) owned by or in the possession or control of Seller
or any Affiliate thereof to the extent relating to the Purchased Assets or the operation of the Business (including safety and
adverse event data) and (iv) copies of all books, records, files and papers, whether in hard copy or computer format, to the extent
related to NonFAMP Eligible Transactions from the third fiscal quarter of 2013 through the Closing Date.


 


"Purchased Inventory"
means that portion of the Inventory that is set forth on Schedule 1.1(a).


 


“Purchase Price”
shall have the meaning set forth in Section 2.6(a).


 


“Purchaser”
has the meaning set forth in the preamble of this Agreement.


 


“Purchaser Disclosure
Schedules” shall have the meaning set forth in Article V.


 


“Purchaser Indemnified
Parties” shall have the meaning set forth in Section 9.1.


 


“Representatives”
means, with respect to any Person, the directors, managers, employees, independent contractors, agents or consultants of such Person.


 


“Required Third
Party Consents” means the consents and approvals set forth on Schedule 1.1(f).


 


“Retained Liabilities”
shall have the meaning set forth in Section 2.5.


 


“Seller”
shall have the meaning set forth in the preamble of this Agreement.


 




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    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


“Seller Company
Identifiers” shall have the meaning set forth in Section 6.7(a).


 


“Seller Disclosure
Schedules” shall have the meaning set forth in Article IV.


 


“Seller Indemnified
Parties” shall have the meaning set forth in Section 9.2.


 


“Services Agreement”
means a services agreement, dated as of the Closing Date, in the form set forth as Exhibit B hereto.


 


“Side Letter”
shall have the meaning set forth in Section 3.1(b)(xii).


 


“Solvent”,
when used with respect to any Person, means that, as of any date of determination, (a) the amount of the “fair saleable value”
of the assets of such Person on a going concern basis will, as of such date, exceed (i) the value of all “liabilities of
such Person, including contingent and other liabilities” as of such date, as such quoted terms are generally determined in
accordance with applicable United States federal laws governing determinations of the insolvency of debtors and (ii) the amount
that will be required to pay the probable liabilities of such Person on its existing debts (including contingent liabilities) as
such debts become absolute and matured, (b) such Person will not have, as of such date, an unreasonably small amount of capital
for the operation of the businesses in which it is engaged or proposed to be engaged following such date and (c) such Person will
be able to pay its liabilities, including contingent and other liabilities, as they mature. For purposes of this definition, each
of the phrases “not have an unreasonably small amount of capital for the operation of the businesses in which it is engaged
or proposed to be engaged” and “able to pay its liabilities, including contingent and other liabilities, as they mature”
means that such Person will be able to generate enough cash from operations, asset dispositions or refinancing, or a combination
thereof, to meet its obligations as they become due.


 


“Subsidiary”
or “Subsidiaries” means an entity as to which Seller or Purchaser or any other relevant entity, as the case
may be, owns directly or indirectly 50% or more of the voting power or other similar interests. Any Person which comes within this
definition as of the date of this Agreement but thereafter fails to meet such definition shall from and after such time not be
deemed to be a Subsidiary of Seller or Purchaser or any other relevant entity, as the case may be. Similarly, any Person which
does not come within such definition as of the date of this Agreement but which thereafter meets such definition shall, from and
after such time, be deemed to be a Subsidiary of Seller or Purchaser or any other relevant entity, as the case may be.


 


“Tax”
or “Taxes” means all taxes, levies or other assessments, including income, excise, property, sales or use, value
added, profits, license, withholding (with respect to compensation or otherwise), payroll, employment, net worth, capital gains,
transfer, stamp, social security, environmental, occupation and franchise taxes, imposed by any Taxing Authority, and including
any interest, penalties and additions attributable thereto.


 


“Tax Return”
or “Tax Returns” means any return, report, declaration, information return, statement or other document filed
or required to be filed with any Taxing Authority, in connection with the determination, assessment or collection of any Tax or
the administration of any Laws relating to any Tax.


 




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“Taxing Authority”
means any Governmental Authority, body or instrumentality exercising any authority to impose, regulate or administer the imposition
of Taxes.


 


“Termination Agreement”
shall have the meaning set forth in Section 3.1(b)(xiii).


 


“Territory”
means the United States and its territories and possessions, including Puerto Rico and U.S. military bases abroad.


 


“Third Party Claim”
shall have the meaning set forth in Section 9.4(a).


 


“Trade Secrets”
shall have the meaning set forth in the definition for Intellectual Property.


 


“Trademark License-Back
Agreement” means the Trademark License-Back Agreement dated as of April 1, 2016, by and between Purchaser and Seller.


 


“Transfer Taxes”
means any federal, state, county, local, foreign and other sales, use, transfer, value added, conveyance, documentary transfer,
stamp, recording, registration or other similar Tax (including any notarial fee) imposed in connection with, or otherwise relating
to, the transactions contemplated by this Agreement or the recording of any sale, transfer or assignment of property (or any interest
therein) effected pursuant to this Agreement.


 


“Treasury Regulations”
means the regulations promulgated by the Treasury Department under the Code.


 


“Unaudited Financial
Statements” shall have the meaning set forth in Section 4.13(b).


 


“URLs”
shall have the meaning set forth in the definition for Intellectual Property.


 


Section
1.2           Other Definitional and Interpretive Provisions.
(a) The words “hereof”, “herein”, “hereto” and “hereunder” and words of similar
import, when used in this Agreement, shall refer to this Agreement as a whole and not to any particular provision of this Agreement.


 


(b)          The
terms defined in the singular shall have a comparable meaning when used in the plural, and vice versa.


 


(c)          The
terms “dollars” and “$” shall mean United States of America dollars.


 


(d)          The
term “including” (and with correlative meaning “include”) shall mean “including, without limitation.”


 


(e)          Reference
to any Person includes such Person’s successors and assigns but, if applicable, only if such successors and assigns are permitted
by this Agreement, and reference to a Person in a particular capacity excludes such Person in any other capacity.


 




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(f)          Reference
to any agreement (including this Agreement), document or instrument means such agreement, document or instrument as amended, modified
or supplemented and in effect from time to time in accordance with the terms thereof and, if applicable, the terms hereof.


 


(g)          When
a reference is made in this Agreement to an Article, a Section, an Exhibit or a Schedule, such reference shall be to an Article
of, a Section of, an Exhibit to or a Schedule to, this Agreement unless otherwise indicated.


 


(h)          The
Parties acknowledge that: (i) this Agreement is the result of negotiations between the Parties and shall not be deemed or
construed as having been drafted by any one Party; (ii) each Party and its counsel have reviewed and negotiated the terms
and provisions of this Agreement (including any exhibits and disclosure schedules attached hereto) and have contributed to its
revision; (iii) the rule of construction to the effect that any ambiguities are resolved against the drafting party shall
not be employed in the interpretation of this Agreement; and (iv) the terms and provisions of this Agreement shall be construed
fairly as to all Parties and not in favor of or against any Party, regardless of which party was generally responsible for the
preparation of this Agreement.


 


Article
II



PURCHASE AND SALE


 


Section
2.1           Purchase and Sale of Assets. Upon the terms
and subject to the conditions set forth herein, at the Closing, Seller shall, and with respect to Section 2.1(b) shall
cause Akrimax to, and with respect to Section 2.1(d) shall cause Mist to, sell, convey, assign and transfer to Purchaser,
and Purchaser shall purchase, acquire and accept from Seller, Mist and Akrimax, as applicable, free and clear of all Liens, other
than Permitted Encumbrances, all right, title and interest of Seller, Akrimax and Mist, as applicable, in, to and under those
assets described in the following clauses (a) through (i) related to Seller’s Product (collectively, the “Purchased
Assets”):


 


(a)          all
the Contracts relating to the Product set forth on Schedule 2.1(a), including with respect to the Licensed Intellectual
Property (the “Assumed Contracts”);


 


(b)          all
of the Owned Intellectual Property (including the URL registration owned by Akrimax as set forth on Schedule 4.9(a)(ii));


 


(c)          all
customer lists for the Product and research data to the extent related to the Product and in the possession or control of Seller
or any Affiliate thereof;


 


(d)          the
Purchased Inventory;


 


(e)          all
the Purchased Documents; provided, however, that Seller shall have the right to retain one copy (subject to the confidentiality
provisions set forth in Section 6.11) of all or any portion of the Purchased Documents to comply with applicable Laws and
regulatory guidance;


 




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(f)          all
refunds for Taxes relating to the Purchased Assets with respect to a Post-Closing Tax Period;


 


(g)          all
of Seller’s rights under warranties, guaranties, indemnities and similar rights against third parties, including any predecessors
in title, to the extent related to the Assumed Liabilities or the Exploitation of the Purchased Assets and the Product on or after
the Closing Date, including rights to proceeds under insurance policies in respect of damage or loss to the Purchased Assets which
have not been fully remediated as of the Closing (“Covered Proceeds”); and


 


(h)          all
of Seller’s claims, counterclaims, causes of action and all other rights of any kind against any third party in connection
with the Assumed Liabilities or related to the Exploitation of the Purchased Assets on or after the Closing Date.


 


Section
2.2           Consents. Purchaser acknowledges that certain
consents to the transactions contemplated by this Agreement (other than the Required Third Party Consents) may be required from
counterparties to Contracts and that such consents may not be obtained prior to Closing. Seller shall use its commercially reasonable
efforts (which shall not require Seller to pay any money or other consideration to any Person, to initiate any claim or proceeding
against any Person or to otherwise grant any accommodation (financial or otherwise) to any Person) (i) to obtain such approval
or consent and (ii) if such approval or consent cannot be obtained, to secure an arrangement reasonably satisfactory to Purchaser
ensuring that Purchaser will receive the benefits under the Purchased Asset for which such consent is being sought and Purchaser
will bear the burden of the Liabilities related to such Purchased Asset; provided, however, that notwithstanding
anything to the contrary herein or otherwise (A) Seller shall have no obligation to obtain such consent or approval or to provide
such an alternative arrangement other than the undertaking to use commercially reasonable efforts to obtain or provide the same
as set forth in this ‎Section 2.2, and (B) Purchaser shall indemnify Seller in respect of all Liabilities incurred
by Seller in respect of any such alternative arrangement and the underlying Purchased Asset. To the extent that, in connection
with obtaining a third party’s consent under any Assumed Contract, one or more of the parties hereto enter into an agreement
with such third party that provides for an allocation of Liability among the parties hereto with respect to such Assumed Contract
that is inconsistent with the terms of this Agreement, the parties agree that, as among themselves, the provisions of this Agreement
shall control.


 


Section
2.3           Excluded Assets. Nothing herein contained shall
be deemed to sell, transfer, assign or convey the Excluded Assets to Purchaser, and Seller shall retain all right, title and interest
to, in and under the Excluded Assets. “Excluded Assets” means all assets, properties, interests and rights
of Seller other than the Purchased Assets to be sold by Seller, including each of the following assets:


 


(a)          all
cash, cash equivalents, bank deposits or similar cash items and accounts receivable of Seller;


 




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(b)          all
books and records of Seller other than the Purchased Documents; provided, however, that Purchaser shall have the
right to make copies of any portions of any such retained books and records to the extent related to any of the Purchased Assets;


 


(c)          all
rights of Seller to (i) the Seller Company Identifiers and (ii) any other Intellectual Property, other than Intellectual Property
included in the Purchased Assets;


 


(d)          all
insurance policies or rights to proceeds thereof relating to the Purchased Assets or the Product (except Covered Proceeds);


 


(e)          subject
to Section 2.1(i), all rights, claims or causes of action of Seller against third parties in connection with the Exploitation
of the Purchased Assets and the Product prior to the Closing Date;


 


(f)          all
Tax Returns and financial statements of Seller and all records (including working papers) related thereto;


 


(g)          all
refunds for Taxes relating to the Purchased Assets with respect to a Pre-Closing Tax Period;


 


(h)          all
of Seller’s rights in respect of real property, including leasehold interests;


 


(i)          the
membership interests in and other equity or ownership interests in Seller;


 


(j)          all
rights that accrue to Seller under this Agreement and the Ancillary Agreements; and


 


(k)          all
of Seller’s causes of action, claims, credits, demands or rights of set-off against third parties, to the extent related
to any Excluded Asset.


 


Section
2.4           Assumption of Liabilities.


 


(a)          Upon
the terms and subject to the conditions of this Agreement, Purchaser agrees, effective at the Closing, to assume and to satisfy
and discharge when due the Liabilities of Seller (other than the Retained Liabilities), specifically set forth below (all of such
Liabilities and other than the Retained Liabilities being herein collectively referred to as the “Assumed Liabilities”):


 


(i)          all
Liabilities arising from the Exploitation of any Product after the Closing Date, including Liabilities for returns, rebates and
chargebacks related to any of the Product shipped after the Closing Date;


 


(ii)         all
Liabilities for Taxes relating to the Purchased Assets or the Product with respect to a Post-Closing Tax Period, including those
allocated in accordance with Section 11.8(b);


 




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(iii)        all
Liabilities for materials and services relating to the Purchased Assets contracted for in the ordinary course of business prior
to the Closing pursuant to an Assumed Contract, but scheduled to be delivered or provided thereafter, and all Liabilities to customers
under purchase orders for Product that have not yet been shipped at Closing, in each case to the extent not related to any breach
of Seller occurring prior to the Closing;


 


(iv)        all
Liabilities under Assumed Contracts (including Liabilities to customers under purchase orders made in the ordinary course of the
sale and marketing of the Product consistent with past practice for any Product that has not been shipped prior to the Closing)
relating to the period following the Closing Date, other than any Liabilities to the extent arising out of, or resulting from,
a breach of any such Assumed Contract by Seller prior to the Closing Date;


 


(v)         all
Liabilities arising out of or relating to any product liability, breach of warranty or similar claim for injury to any Person or
property that resulted from the use or misuse of the Product on or after the Closing Date or otherwise relates to the Product sold
(including any Proceeding relating to any such Liabilities) on or after the Closing Date, which, in the case of any split lots
of Product, shall be determined based on the percentage of any such lot sold on or after the Closing Date; and


 


(vi)        all
other Liabilities relating to the Purchased Assets or the Product, or Purchaser’s use thereof, solely to the extent that
such are not Retained Liabilities, including to any Governmental Authority, and all fees arising from or related to any Intellectual
Property included in the Purchased Assets, but only to the extent not related to or arising out of any act, omission or event occurring
prior to the Closing.


 


Section
2.5           Retained Liabilities. Notwithstanding any provision
in this Agreement, Seller shall retain and be responsible only for the following Liabilities (the “Retained Liabilities”):


 


(a)          all
Liabilities of Seller and/or any Affiliate of Seller other than Assumed Liabilities, including all Liabilities related to the Excluded
Assets and all Liabilities under Assumed Contracts relating to the period prior to the Closing Date (including the Assumed Contracts
set forth on Schedule 4.12(e));


 


(b)          all
Liabilities of Seller and/or any of its Affiliates under the Ancillary Agreements;


 


(c)          all
Liabilities of Seller and/or any of its Affiliates in respect of any Proceeding (whether class, individual or otherwise in nature,
in law or in equity) commenced or asserted prior to the Closing, or based on acts or omissions of Seller and/or any of its Affiliates
or their respective equityholders, officers, directors or managers occurring prior to the Closing, and arising out of or to the
extent relating to or otherwise in any way relating to the Purchased Assets or the Product, including, without limitation, any
Liability to any equityholder of Seller or any Affiliate of Seller and including all Liabilities arising out of or related to the
litigation described on Schedule 4.6 of the Seller Disclosure Schedules;


 




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(d)          all
Liabilities of Seller to its suppliers for materials and services relating to the Product that were delivered or provided to Seller
prior to Closing;


 


(e)          all
Liabilities arising out of or relating to any product liability, breach of warranty or similar claim for injury to any Person or
property that resulted from the use or misuse of the Product prior to the Closing Date or otherwise relates to the Product sold
(including any Proceeding relating to any such Liabilities) prior to the Closing Date, which, in the case of any split lots of
Product, shall be determined based on the percentage of any such lot sold prior to the Closing Date;


 


(f)          any
Liability under Seller’s employee benefits or compensation arrangements; and


 


(g)          all
Liabilities for Taxes relating to the Purchased Assets or the Product with respect to a Pre-Closing Tax Period, including those
allocated in accordance with Section 11.8(b).


 


Section
2.6           Purchase Price.


 


(a)          On
the terms and subject to the conditions set forth herein, in consideration of the sale and transfer of the Purchased Assets, at
the Closing, Purchaser shall (i) assume the Assumed Liabilities and (ii) pay an amount in cash equal to the sum of (x)
Nineteen Million Eight Hundred and Eleven Thousand Dollars ($19,811,000), plus (y) the Closing Date Inventory
Value, subject to adjustment pursuant to the terms of Section 2.7(g) (the “Purchase Price”) to
Seller in immediately available funds by wire transfer to the account(s) specified in written instructions given by Seller to Purchaser
not less than two (2) Business Days prior to the Closing.


 


(b)          To
the extent that Purchaser is required under any provision of Law to deduct and withhold Taxes on any payment hereunder, Purchaser
shall withhold and deduct from the Purchase Price such required amounts and such withheld amounts shall be treated for all purposes
of this Agreement as having been paid to the Persons in respect of which such deductions and withholdings were made; provided,
however, that Purchaser may deduct such amounts only if Purchaser shall (i) give Seller reasonable advance notice of
the intention to make such deduction or withholding; (ii) explain the basis for such deduction or withholding, and (iii) cooperate
with Seller to the extent reasonably requested to obtain any applicable reduction of or relief from such deduction or withholding;
provided, further, that, except as otherwise required by Law or applicable court order, Purchaser shall not withhold
any portion of the Purchase Price if Seller delivers a non-foreign affidavit under Section 1445 of the Code and the Treasury Regulations
promulgated thereunder.


 




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(c)          The
allocation of the Purchase Price among the Purchased Assets and Assumed Liabilities shall be prepared by Purchaser within ninety
(90) days following the Closing. Purchaser shall deliver to Seller a copy of such proposed allocation promptly after Purchaser’s
determination of the proposed allocation, and Seller shall have the right to review and raise any objections in writing to the
proposed allocation during the fifteen (15) day period after Seller’s receipt thereof. If Seller does not notify Purchaser
in writing of a disagreement with the proposed allocation during such fifteen (15) day period, the proposed allocation shall become
final. If Seller disagrees with respect to any item in the allocation, the Parties shall negotiate in good faith to resolve the
dispute. If the Parties are unable to agree on the allocation within thirty (30) days after the commencement of such good faith
negotiations (or such longer period as Seller and Purchaser may mutually agree in writing), then the parties shall refer such dispute
to an independent internationally recognized accounting firm (“Independent Accountant”) at that time to review
the allocation, and make a determination as to the resolution of such allocation. The determination of the Independent Accountant
regarding the allocation shall be delivered as soon as practicable following engagement of the Independent Accountant, but in no
event more than sixty (60) days thereafter, and shall be final, conclusive and binding upon Seller and Purchaser, and Purchaser
shall revise the original proposed allocation accordingly. Seller, on the one hand, and Purchaser on the other hand, shall each
pay one-half of the cost of the Independent Accountant. The finalized allocation shall be binding on Seller and Purchaser for all
Tax reporting purposes and Seller and Purchaser agree to refrain from taking any position inconsistent therewith, unless required
by applicable Law or a final determination of a Taxing Authority.


 


Section
2.7           Purchase Price Adjustment.


 


(a)          On
the Closing Date, Seller shall deliver to Purchaser a statement (the “Closing Statement”) containing Seller’s
final calculation of the Closing Date Inventory Value and shall be accompanied with reasonably detailed documentation supporting
Seller’s calculation thereof. The Closing Statement will be in the form as set forth in Schedule 2.7(a).


 


(b)          The
Purchaser will have a period of twenty (20) Business Days to review the Closing Statement and all calculations set forth therein.
Seller shall give Purchaser (upon reasonable advance notice and during normal business hours in a manner that does not materially
interfere with Seller’s business) reasonable access to the applicable personnel and books and records of Seller and its Affiliates
as reasonably requested by Purchaser, as well as use commercially reasonable efforts to cause [***] to provide Purchaser reasonable
access to the premises of [***] and the records kept by them of the Purchased Inventories, to reasonably enable Purchaser to fully
review the Closing Statement and such access shall be provided in a timely manner to allow Purchaser to complete such review in
such twenty (20) Business Day period.


 


(c)          
The Closing Statement shall be conclusive of the amount of the Closing Date Inventory Value and shall be final and binding upon
the Parties unless on or before the twentieth (20th) Business Day after the date on which the Closing Statement is delivered
to Purchaser, Purchaser delivers to Seller a notice of objection (an “Objection Notice”) to any matter stated
in the Closing Statement. Any Objection Notice shall specify, in reasonable detail to the extent Purchaser has the available information,
those items or amounts as to which Purchaser disputes in good faith and Purchaser shall be deemed to have agreed with all other
items and amounts contained in the Closing Statement and the calculations of the Closing Date Inventory Value set forth therein.


 




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(d)          If
Purchaser fails to deliver an Objection Notice within such twenty (20) Business Day period, Purchaser shall be deemed to have waived
its rights to contest the Closing Statement and the calculation of the Closing Date Inventory Value set forth therein shall be
deemed to be final and binding upon the Parties (the “Final Inventory Value”) and such amount shall be used
for the purposes of adjustment to the Purchase Price pursuant to Section 2.7(g).


 


(e)          If
Purchaser delivers an Objection Notice to Seller on or before such twenty (20) Business Day period, then the Parties shall meet
within ten (10) Business Days after Purchaser delivers an Objection Notice, by telephone or at a mutually agreeable location to
discuss in good faith and attempt to reconcile their differences with respect to the amount of the Closing Date Inventory Value
that is being challenged by Purchaser (the “Challenged Amount(s)”). In the event the Parties are unable to reach
agreement on the Challenged Amounts, either Party may at any time thereafter submit such remaining disagreements to the Independent
Accountant.


 


(f)          The
Parties shall use commercially reasonable efforts to cause the Independent Accountant, once appointed, to resolve all remaining
disagreements with respect to Challenged Amounts as soon as practicable, but in any event shall direct the Independent Accountant
to render a determination within thirty (30) days after retention of the Independent Accountant. Each Party will be afforded the
opportunity to present to the Independent Accountant any material such Party deems relevant to the determination. The Independent
Accountant shall consider only those items and amounts in Purchaser’s and Seller’s respective calculations of the Challenged
Amounts that are identified as being items and amounts to which Purchaser and Seller have been unable to agree. In resolving any
disputed item, the Independent Accountant may not assign a value to any item greater than the greatest value for such item claimed
by either Party or less than the smallest value for such item claimed by either Party. The Independent Accountant’s determination
of the Challenged Amounts shall be based solely on written materials submitted by the Parties (i.e., not on independent
review) and on the definitions included in this Agreement. The determination of the Independent Accountant shall be conclusive
and binding upon the Parties and shall not be subject to appeal or further review and shall be deemed as the Final Inventory Value
for all purposes hereunder. The costs and expenses of the Independent Accountant in determining any Challenged Amounts shall be
borne equally by Purchaser, on the one hand, and Seller, on the other hand.


 


(g)          On
the date of the binding determination of the Final Inventory Value pursuant to the terms of this Section 2.7, if:


 


(i)          the
Final Inventory Value is equal to an amount that is less than the Closing Date Inventory Value set forth in the Closing
Statement (the aggregate total amount of the shortfall equal to the sum of (x) the Closing Date Inventory Value, minus
(y) the Final Inventory Value, the “Inventory Shortfall Amount”), then Seller shall, within ten (10) Business
Days of the binding determination of the Final Inventory Value, pay an amount in cash equal to the Inventory Shortfall Amount to
Purchaser in immediately available funds by wire transfer to the account(s) specified in written instructions provided by Purchaser
to Seller; or


 




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(ii)         the
Final Inventory Value is more than Closing Date Inventory Value set forth in the Closing Statement (the aggregate
total amount of the excess equal to the sum of (x) the Final Inventory Value, minus (y) the Closing
Date Inventory Value, the “Inventory Excess Amount”), then Purchaser shall, within ten (10) Business Days of
the binding determination of the Final Inventory Value, pay an amount in cash equal to the Inventory Excess Amount to Seller in
immediately available funds by wire transfer to the account(s) specified in written instructions provided by Seller to Purchaser.


 


(iii)        Notwithstanding
anything to the contrary set forth above, in no event will the Final Inventory Value be deemed to exceed [***].


 


Article
III



CLOSING


 


Section
3.1            Closing. (a) The Closing shall take place
remotely via the exchange of documents and signatures by electronic mail and overnight courier service on (i) the second (2nd)
Business Day following the satisfaction (or, to the extent permitted hereby and by applicable Law, waiver) of the conditions set
forth in Article VIII (other than the conditions that by their nature are to be satisfied by actions to be taken on the
Closing Date, but subject to the waiver or satisfaction of such conditions) or (ii) at such other time and place as the Parties
may mutually agree in writing. The date on which the Closing occurs is called the “Closing Date.” The Closing
shall be deemed to occur and be effective as of 12:01 a.m. on the Closing Date.


 


(b)          At
the Closing, Seller shall deliver or cause to be delivered to Purchaser the following instruments and documents, in each case,
in form and substance reasonably acceptable to Purchaser:


 


(i)          a
receipt for payment of the Purchase Price;


 


(ii)         a
certificate of an authorized officer of Seller as to the resolutions adopted by the members, board of managers or similar governing
body of Seller relating to the transactions contemplated hereby;


 


(iii)        executed
copies of the Required Third Party Consents;


 


(iv)        assignments
of Assumed Contracts, duly executed by Seller or its applicable Affiliate;


 


(v)         the
Bill of Sale, duly executed by an authorized officer of Seller;


 




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(vi)        general
assignments duly executed by Seller and all of the Seller Affiliates assigning to Purchaser all right, title and interest they
may have in and to any of the Purchased Assets, including assignments of all URLs to the extent owned by any Seller Affiliate and
used or held for use in connection with the Exploitation of the Product;


 


(vii)       physical
or, to the extent available, electronic copies of the Purchased Documents;


 


(viii)      a
duly executed non-foreign affidavit under Section 1445 of the Code and the Treasury Regulations promulgated thereunder;


 


(ix)         the
Services Agreement, duly executed by an authorized officer of Seller;


 


(x)          evidence
reasonably satisfactory to Purchaser of the termination of the Affiliate Agreements;


 


(xi)         either
(A) evidence in form and substance reasonably satisfactory to Purchaser that those Liens on the Purchased Assets (other than Permitted
Encumbrances) set forth on Schedule 1.1(b) have been or will be released at the Closing or (B) written authorization from
the appropriate Lien holders authorizing Purchaser to file terminations or releases of such Liens set forth on Schedule 1.1(b);


 


(xii)        a
side letter, in form and substance reasonably satisfactory to Purchaser, duly executed by authorized officers of the applicable
Affiliates of Seller, addressing only those matters set forth in Exhibit C (the “Side Letter”); and


 


(xiii)       a
termination agreement, in form and substance reasonably satisfactory to Purchaser, duly executed by an authorized officer of Purchaser,
Purchaser, terminating in all respects the Trademark License-Back Agreement (the “Termination Agreement”).


 


(c)          At
the Closing, Purchaser shall deliver or cause to be delivered to Seller, the following: (x) the Purchase Price, as provided in
Section 2.6(a), and (y) the following instruments and documents, in each case, in form and substance reasonably acceptable
to Seller:


 


(i)          Assignments
of Assumed Contracts duly executed by Purchaser;


 


(ii)         executed
assumption agreements and all other instruments appropriate to evidence Purchaser’s assumption of the Assumed Liabilities;


 


(iii)        certificates
of an authorized officer of Purchaser as to the resolutions adopted by the Boards of Directors of Purchaser relating to the transactions
contemplated hereby;


 




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(iv)        the
Services Agreement, duly executed by an authorized officer of Purchaser;


 


(v)         the
Termination Agreement, duly executed by an authorized officer of Purchaser; and


 


(vi)        the
Side Letter, duly executed by an authorized officer of Purchaser.


 


Article
IV



REPRESENTATIONS AND WARRANTIES OF SELLER


 


Except as set forth in the
correspondingly numbered section of the disclosure schedules attached hereto that relates to such Section of this Agreement (the
“Seller Disclosure Schedules”), Seller hereby makes the representations and warranties contained in this Article
IV to Purchaser.


 


Section
4.1           Organization. Seller is (i) a limited liability
company duly organized, validly existing and in good standing under the Laws of Delaware and (ii) is duly qualified or licensed
to do business and is in good standing in each jurisdiction in which such qualification or licensing is necessary under applicable
Laws or where the Exploitation of Seller’s Product requires such qualification, except where the failure to be so qualified
would not have a Material Adverse Effect. Seller has no Subsidiaries.


 


Section
4.2           Authority; Binding Effect. (a) Seller
has all requisite limited partnership power and authority to execute and deliver this Agreement and to consummate the transactions
contemplated hereby and perform its obligations hereunder. The execution, delivery and performance by Seller of this Agreement
and the consummation of the transactions contemplated hereby have been duly authorized by all necessary limited liability action
on behalf of Seller.


 


(b)          This
Agreement has been duly executed and delivered by Seller and, assuming
the valid execution and delivery by Purchaser, constitutes a valid and binding obligation of Seller, and each Ancillary Agreement
will be, prior to the Closing, duly executed and delivered by Seller and will, assuming the valid execution and delivery by Purchaser,
from and after the Closing, constitute a valid and binding obligation of Seller, in each case enforceable against Seller in accordance
with its terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium
or similar laws affecting creditors’ rights generally or by general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or law) (the “Bankruptcy and Equity Exception”).


 




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Section
4.3           No Conflicts; Consents. The execution, delivery
and performance of this Agreement and the Ancillary Agreements by Seller and the consummation of the transactions contemplated
hereby and thereby do not and will not (i) violate any provision of the organizational documents of Seller; (ii) subject to obtaining
the Required Third Party Consents as well as the other consents referred to in Schedule 4.3 of the Seller Disclosure Schedules,
conflict with, or result in the breach of, constitute a default under, result in the termination, cancellation or acceleration
(whether after the giving of notice or the lapse of time or both) of any right or obligation of Seller under, or to a loss of
any benefit to which Seller is entitled under, any Assumed Contract, or any other Contract to which the assets of Seller or any
of its Affiliates are subject to the extent such relate to the Purchased Assets; and (iii) assuming compliance with the matters
set forth in Section 4.4 and Section 5.5, violate or result in a breach of or constitute a default under any Law
or other restriction of any Governmental Authority to which Seller is subject; except, with respect to clauses (ii) and
(iii), for any violations, breaches, conflicts, defaults, terminations, cancellations or accelerations as would not reasonably
be expected to be material to the Business, Purchased Assets or the Product.


 


Section
4.4           Governmental Authorization. The execution and
delivery of this Agreement and the Ancillary Agreements by Seller or any Affiliate thereof does not require any consent or approval
of any Governmental Authority included within the Required Third Party Consents.


 


Section
4.5           Absence of Material Changes. Except as otherwise
contemplated or permitted by this Agreement, from December 31, 2015 to the date of this Agreement:


 


(a)          there
has not been any Material Adverse Effect; and


 


(b)          other
than with respect to the transactions contemplated by this Agreement and the exploration of strategic alternatives for the Purchased
Assets by Seller, Seller operated the Purchased Assets, in all material respects, in the ordinary course of business.


 


Section
4.6           No Litigation. No proceeding by or before any
Governmental Authority is pending against or, to the Knowledge of Seller, threatened in writing against Seller with respect to
the Purchased Assets that would reasonably be expected to be material to the Business, the Purchased Assets and the Product, taken
as a whole, or that in any manner challenges or seeks to prevent, enjoin, alter or materially delay the transactions contemplated
by this Agreement or the Ancillary Agreements. None of Seller or any of its Purchased Assets are subject to any Governmental Order
or arbitration award that is material to the Purchased Assets, taken as a whole, or that imposes any material limitation on the
ability of Seller to operate its Business as currently conducted.


 


Section
4.7           Compliance with Laws. Except as to matters
otherwise set forth in this Agreement:


 


(a)          Since
January 1, 2015,Seller and its Affiliates have operated the Business in material compliance with all Laws applicable to the Purchased
Assets, including the FDA Act;


 


(b)          Seller
possesses all Governmental Authorizations necessary for the operation of the Business and the Purchased Assets as currently conducted;
and


 


(c)          since
January 1, 2015, no Governmental Authority has notified Seller or any Affiliate of Seller in writing that Seller or an Affiliate
of Seller (with respect to the Product, the Purchased Assets or the operation of the Business) is in violation of any applicable
Law.


 




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Section
4.8           Regulatory Compliance.


 


(a)          Schedule
4.8(a) of the Seller Disclosure Schedules sets forth, as of the date hereof, a list of all product registrations with respect
to the Product in the United States, which constitute all material registrations, applications, approvals, licenses or permits
granted by any Governmental Authority and used by Seller or any Affiliate of Seller in the Exploitation of the Product since January
1, 2015.


 


(b)          All
of the Product sold are, and at all times since January 1, 2015, have been manufactured and marketed in accordance with applicable
Laws, except where the failure to comply therewith would not reasonably be expected to be material to the Business, the Purchased
Assets and the Product, taken as a whole.


 


(c)          To
the Knowledge of Seller, there are no pending requirements to conduct any Phase IV or other clinical studies with respect
to any Product of Seller in the United States for any approved indication.


 


(d)          Neither
Seller nor any of Seller’s Affiliates or any of their respective contractors has (nor, to the Knowledge of Seller, has any
other Person) at any time since January 1, 2015 (i) received or been subject to a warning letter, untitled letter, Form FDA 483,
or any other similar Governmental Authority notice or action relating to any Product; (ii) been subject to any Governmental Authority
detention, seizure, injunction, consent decree, notice of criminal investigation, indictment, sentencing memorandum, plea agreement,
court order, target or no-target letter, or other investigation relating to any Product; or (iii) initiated or been subject to
any product recall, market withdrawal, stock replacement or post-sale warning relating to any Product.


 


Section
4.9           Intellectual Property.


 


(a)          Schedule
4.9(a)(i) – (iv) of the Seller Disclosure Schedules set forth a true and correct list of all (i) URL registrations and
(ii) applications and registrations for Copyrights, in each case to the extent owned by Seller or any Seller Affiliate and used
or held for use in connection with the Exploitation of Product as of the date of this Agreement (“Owned Intellectual Property”).


 


(b)          Except
as set forth on Schedule 4.9(b)(i) – (iii) of the Seller Disclosure Schedule:


 


(i)          there
is no action or proceeding pending, nor any notice of any objection or claim (other than objections or claims that have been previously
resolved) asserted in writing or, to the Knowledge of Seller, threatened by any Person, with respect to or challenging, the ownership,
validity or enforceability of any Owned Intellectual Property (or, to the Knowledge of Seller, any Intellectual Property licensed
to Seller or a Seller Affiliate pursuant to an Assumed Contract or the Trademark License-Back Agreement (“Licensed Intellectual
Property”));


 




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(ii)         the
Owned Intellectual Property and the rights of Seller or a Seller Affiliate to any Licensed Intellectual Property are free and clear
of any Liens, other than Permitted Encumbrances; and


 


(iii)        
none of the Owned Intellectual Property (nor, to the Knowledge of Seller, the rights of Seller or a Seller Affiliate to any Licensed
Intellectual Property) is the subject of (A) any pending (or, to the Knowledge of Seller, threatened) material adverse claim, judgment,
injunction, order, decree or agreement restricting (1) its use in connection with any Product or (2) assignment thereof to
Purchaser or termination thereof as contemplated hereunder, or (B) any other pending (or, to the Knowledge of Seller, threatened)
material litigation or claim of infringement.


 


(c)          Except
for the rights and assets set forth on Schedule 4.9(c) of the Seller Disclosure Schedules, the (i) Owned Intellectual
Property, (ii) the rights of Seller to Licensed Intellectual Property under the Assumed Contracts or Trademark License-Back Agreement,
(iii) any Intellectual Property with respect to the Seller Company Identifiers and (iv) the Licensed Know-How, collectively, include
all of the material Intellectual Property used by Seller or any Affiliate of Seller to Exploit the Product since January 1, 2015.


 


(d)          Except
as set forth on Schedule 4.9(d), to the Knowledge of Seller the Exploitation of Seller’s Product in the manner in
which such Product has been Exploited since January 1, 2015, does not infringe, misappropriate or otherwise violate any Intellectual
Property or proprietary right of any Person.


 


(e)          Except
as set forth on Schedule 4.9(e) of the Seller Disclosure Schedule, Seller has not granted any license, option or other rights
with respect to any of its Owned Intellectual Property or, with respect to the Product, any rights of Seller to any Licensed Intellectual
Property to any other Person, in each case to the extent such license, option or other rights is material to the Exploitation of
the Product.


 


Section
4.10         Assets.


 


(a)          Except
as otherwise expressly provided in this Agreement, Seller owns or has the legal right to use all of its Purchased Assets. Seller
has good and marketable title to all its Purchased Assets (other than Intellectual Property, which is the subject of Section
4.9), free of Liens, except for Permitted Encumbrances.


 


(b)          Except
for the rights and assets set forth on Schedule 4.10 of the Seller Disclosure Schedules, the Purchased Assets, together
with the rights granted to Purchaser under the Ancillary Agreements, constitute all of the assets and rights of Seller and/or its
Affiliates pertaining to the Product or used or held for use by Seller in the Exploitation of the Product. Except as set forth
on Schedule 4.10 of the Seller Disclosure Schedules, (i) no Affiliate of Seller has any rights to or interest in any of
the Purchased Assets, except for (A) such rights or interest that will be assigned to Purchaser at the Closing and (B) such rights
or interest under the Affiliate Agreements, which Affiliate Agreements will be terminated at the Closing and (ii) Rouses Point
Pharmaceuticals, LLC has no rights to or interest in any of the Purchased Assets and is not and has not been a party to any agreement
with Seller with respect to or otherwise relating to the Product.


 




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Section
4.11         Taxes.


 


(a)          Seller
has duly and timely filed, including extensions (or caused to be filed) with the appropriate Taxing Authorities all income and
other material Tax Returns relating to its Purchased Assets required to be filed. No claim has ever been made in writing by a Taxing
Authority in any jurisdiction where Seller does not file Tax Returns that Seller is or may be subject to taxation by that jurisdiction
as a result of its operation, ownership or use of Purchased Assets.


 


(b)          Seller
has paid (or caused to be paid) all income and other material Taxes relating to its Purchased Assets due and payable (whether or
not shown on any Tax Return) on or prior to the Closing Date. Seller has withheld or collected (or caused to be withheld or collected)
all material Taxes relating to its Purchased Assets required to be withheld or collected.


 


(c)          There
are no Liens for Taxes, nor, to the Knowledge of Seller, is any Taxing Authority in the process of imposing any Lien, on the Purchased
Assets, other than for Permitted Encumbrances set forth in clause (ii) of such definition. There are no written claims,
assessments, deficiencies or other adjustments for Taxes against Seller which, if not satisfied or resolved, would result in a
Lien on the Purchased Assets, other than for Permitted Encumbrances set forth in clause (ii) of such definition, that would survive
the Closing Date or in a Liability of Purchaser or its Affiliates as a transferee of or successor to Seller’s Purchased Assets.


 


(d)          Seller
has not waived any statute of limitations, agreed to any extension of time, or entered into any written agreement in respect of
Taxes, the nonpayment or underpayment of which would result in a Lien on its Purchased Assets, other than for Permitted Encumbrances
set forth in clause (ii) of such definition, that would survive the Closing Date, or in a Liability of Purchaser or its Affiliates
as a transferee of or successor to such Purchased Assets.


 


Section
4.12         Contracts.


 


(a)          Schedule 4.12(a)
of the Seller Disclosure Schedules sets forth, as of the date of this Agreement, a true, correct and complete list of all of the
Assumed Contracts (including all amendments or modifications thereto), to which Seller is a party which are used in the Exploitation
of the Product or by which any of its Purchased Assets are bound, including:


 


(i)          any
Contract that, in accordance with its terms, requires aggregate payments of [***] or more within the twelve (12) month period following
the date hereof and that is not cancelable without Liability on sixty (60) or fewer days’ notice to the other party thereto;


 


(ii)         any
Contracts or agreements relating to or evidencing indebtedness in excess of [***] which is secured in whole or part by the Purchased
Assets;


 




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(iii)        any
Contracts that contain any non-compete or exclusivity provisions (or obligates Purchaser or any of its Affiliates to enter into
any non-compete or exclusivity arrangements following the Closing) with respect to any line of business or geographic area;


 


(iv)        any
Contract that requires (or would require upon the happening of a contingency) the disposition of any assets or line of business
of Seller prior to Closing, or by Purchaser or any of its Affiliates following the Closing;


 


(v)         any
Contract that grants a contractual counterparty “most favored nation” or similar status;


 


(vi)        any
Contract that restricts the conduct of any line of business (including the ability to research, develop, distribute, sell, supply,
market or manufacture any product (including Product under development) for any indication in any product market, therapeutic area
or geographic area) by Purchaser or any of its Affiliates following the Closing;


 


(vii)       any
Contract that requires or obligates Purchaser or any of its Affiliates to purchase specified minimum amounts of any product or
material or to perform or conduct research, clinical trials or development for the benefit of any Person other than Purchaser or
any of its Affiliates;


 


(viii)      any
Contract that prohibits or limits in any material respect the right of Seller prior to Closing, or Purchaser or any of its Affiliates
following the Closing, to make, sell or distribute any Product or services or use, transfer, license, distribute or enforce any
of its Intellectual Property;


 


(ix)         any
Contract that could reasonably be expected to account for sales of one or more of the Product by Seller or any Seller Affiliate
of [***] or more in the aggregate during the fiscal years ending December 31, 2016 or 2017;


 


(x)          any
Contract that is a settlement agreement, other than (A) releases or separation agreements entered into with former employees
or current or former independent contractors and (B) settlement agreements under which there are no continuing obligations,
Liabilities or rights (excluding releases);


 


(xi)         any
Contract pursuant to which Seller is granted a license, covenant not to sue, option or other right with respect to any Licensed
Intellectual Property that is material to the Exploitation of the Product;


 


(xii)        any
Contract pursuant to which Seller grants a third party a license, covenant not to sue, option or other right with respect to any
Purchased Intellectual, excluding licenses, covenants not to sue, options and other rights granted in the ordinary course of business;
and


 




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(xiii)       any
Contract that contains any liability or obligation to indemnify any Person against any Tax Liability or to share any Tax Liability
with any Person (other than commercial Contracts, the primary purpose of which is not related to Taxes, none of which are Assumed
Contracts).


 


(b)          Seller
has made available to Purchaser true, complete and correct copies of all Assumed Contracts including any and all amendments, supplements
or modifications thereto, or detailed descriptions of any oral Assumed Contracts, to which it is a party. Each Assumed Contract
is a legal, valid and binding obligation, and is enforceable against Seller, and, to the Knowledge of Seller, the other party thereto,
and is in full force and effect, subject to the Bankruptcy and Equity Exception. Neither Seller nor, to the Knowledge of Seller,
any other party thereto (i) is in breach or violation of, or default under, or has delivered a notice of termination of, any
such Assumed Contract and no event has occurred that, with the giving of notice or lapse of time or both, would constitute a breach
or default of any such Assumed Contract, (ii) has not communicated any intention or threat to Seller, to reduce the prices
it will pay to Seller pursuant thereto, to terminate or to cancel any such Assumed Contract or has failed to renew or extend the
term of any such Assumed Contract upon the expiration of any such term.


 


(c)          From
and after the Closing, the Purchaser will have no obligation to make any payment to or perform any obligation for the benefit of
any Affiliate of Seller (whether pursuant to an Assumed Contract or otherwise), except to the extent expressly set forth herein
or in an Ancillary Agreement.


 


(d)          Schedule
4.12(d) of the Seller Disclosure Schedules sets forth, as of the date of this Agreement, a true, correct and complete list,
with respect to the Product, any Contract between Seller or any Seller Affiliate and each of (A) the ten (10) largest customers
and (B) the two sole suppliers of the Product during either the fiscal year ended December 31, 2015 or the fiscal year ended December
31, 2016.


 


(e)          Seller
has (i) accurately calculated and paid all royalty payments or license fees in respect of sales of the Product for all periods
ending on or prior to December 31, 2016 owed pursuant to (A) the Assumed Contracts and (B) all other contracts in connection with
which Seller pays a royalty or other fee based on the sales of the Product, each of which is set forth on Schedule 4.12(e),
and (ii) not received any written notice from any counterparty to any such Assumed Contract or other contract alleging that Seller
has failed to pay any amounts due thereunder.


 


(f)          No
Assumed Contract contains any provision that would impose a 'failure to supply' penalty on the Purchaser following the Closing.


 


(g)          There
are no outstanding purchase orders issued by Seller or any Affiliate of Seller (including Mist) to the manufacturer or packager
of the Product with a scheduled delivery date prior to January 1, 2018 or which would otherwise result in the delivery of any Product
to Seller or Purchaser prior to January 1, 2018.


 




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Section
4.13         Financial Statements.


 


(a)          Seller
has provided to Purchaser a correct and complete copy of an audited balance sheet (including any related notes thereto) of Seller
for the year ended December 31, 2015 together with the audited statement of income and cash flows for the year ended December 31,
2015 (the “Audited Financial Statements”). The Audited Financial Statements were prepared in accordance with
GAAP applied on a consistent basis throughout the periods involved (except as may be indicated in the notes thereto), are consistent
with and were prepared from the books and records of Seller, and fairly present in all material respects the financial condition,
results of its operations and income and cash flows of Seller as of the of the respective dates thereof and for the respective
periods, except as otherwise set forth in the notes thereto.


 


(b)          Seller
has provided to Purchaser a correct and complete copy of the unaudited balance sheet of Seller for the three (3) month period ended
December 31, 2016, together with the unaudited consolidated statement of income and cash flows for the three (3) month period ended
on December 31, 2016 (the “Unaudited Financial Statements” and, collectively with the Audited Financial Statements,
the “Financial Statements”). The Unaudited Financial Statements were prepared in accordance with GAAP applied
on a consistent basis throughout the periods involved (except as may be indicated in any notes thereto), are consistent with and
were prepared from the books and records of Seller, and fairly present in all material respects the financial condition, results
of its operations and income and cash flows of Seller as of the respective dates thereof and for the respective periods indicated,
except that the Unaudited Financial Statements do not contain notes and are subject to normal year-end adjustments (none of which
would be materially adverse).


 


(c)          Section
4.13(c) of the Seller Disclosure Schedule sets forth, in all material respects, a complete and correct calculation of Net Sales
and Gross Profits of Seller and its Affiliates, based on unaudited financial statements available as of the date hereof, with respect
to the Product (calculated on a consolidated basis and consistent with and prepared from the books and records of Seller) for the
year ended December 31, 2016.


 


(d)          Seller
maintains books and records accurately reflecting its material assets and material liabilities and a system of internal controls
that management reasonably believes is sufficient to ensure that transactions are recorded as necessary to permit preparation of
financial statements of Seller in conformity with GAAP and to maintain asset accountability, and to provide adequate assurance
that material transactions and access to assets are authorized only by management. Such books and records are accurate and complete
in all material respects. Seller does not maintain any off-the-book accounts. Seller has disclosed to Purchaser any known or, to
the knowledge of Seller, alleged fraud, respecting Seller or any Affiliate of Seller since January 1, 2015, that involves management
or other employees who have had a significant role in the internal control over financial reporting.


 


Section
4.14         Suppliers and Customers. No customer or supplier identified
in Section 4.14 of the Seller Disclosure Schedule has, since January 1, 2016, ceased, failed to renew or materially altered
its relationship with Seller or an Affiliate of Seller with respect to the Business in a manner adverse to Seller or such Affiliate
or, to the Knowledge of Seller, has threatened in writing to cease or materially alter such relationship in a manner materially
adverse to Seller or its Affiliate. No such customer has notified Seller or an Affiliate of Seller in writing, that it shall stop,
or materially decrease the rate of, buying Product from Seller or an Affiliate of Seller which would be materially adverse to
Seller or its Affiliate. No such supplier has notified Seller or an Affiliate of Seller in writing that it shall stop, or materially
decrease the rate of, supplying materials, Product or services to Seller or an Affiliate of Seller with respect to the Business
which would be materially adverse to Seller.


 




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Section
4.15         Brokers. Except as set forth on Schedule 4.15 of
the Seller Disclosure Schedule (whose fees will be paid by Seller), no broker, finder or investment banker is entitled to any
brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based
upon arrangements made by or on behalf of Seller.


 


Section
4.16         Inventories. As of the Closing, the Purchased Inventories:
(i) are in material compliance with all applicable specifications, (ii) have been manufactured in all material respects in accordance
with current Good Manufacturing Practices, as set forth in the United States Code of Federal Regulations, and (iii) are not misbranded
or adulterated, within the meaning of the Food, Drug and Cosmetics Act.


 


Section
4.17         Ordinary Course. Except as set forth on Schedule 4.17
of the Seller Disclosure Schedule, since January 1, 2016, the Seller and each of its Affiliates has maintained the Purchased
Assets and Exploited the Product in the ordinary course of business consistent in all material respects, with past practice. Except
as set forth on Schedule 4.17 of the Seller Disclosure Schedule, since September 30, 2016, neither Seller nor any Affiliate
of the Seller has offered any discounts or sales promotions intended to increase sales of the Product, except as required under
Contracts existing as of such date.


 


Section
4.18         Base Period AMP. The base period AMP set forth on Schedule
4.18 for the Product has been calculated in accordance with all applicable Laws, and to Seller’s knowledge, there are
no facts or circumstances that would require a restatement of the base period AMP for any Product.


 


Section
4.19         No Other Representations or Warranties. EXCEPT FOR THE
REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED IN THIS Article IV (AS MODIFIED BY THE SELLER DISCLOSURE SCHEDULES),
NEITHER SELLER NOR ANY OTHER PERSON MAKES ANY OTHER EXPRESS OR IMPLIED (BY STATUTE OR OTHERWISE), REPRESENTATION OR WARRANTY WITH
RESPECT TO SELLER, THE PURCHASED ASSETS, OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE ASSUMED LIABILITIES AND ANY OTHER
RIGHTS OR OBLIGATIONS TO BE TRANSFERRED HEREUNDER OR PURSUANT HERETO, AND SELLER DISCLAIMS ANY OTHER REPRESENTATIONS OR WARRANTIES,
WHETHER MADE BY SELLER OR ANY OF ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR REPRESENTATIVES, AND WITHOUT LIMITING
THE EXPRESS REPRESENTATIONS AND WARRANTIES OF SELLER SET FORTH HEREIN (AS MODIFIED BY THE SELLER DISCLOSURE SCHEDULES), IT IS
THE EXPLICIT INTENT AND UNDERSTANDING OF EACH PARTY HERETO THAT PURCHASER TAKES THE PURCHASED ASSETS “AS IS,” “WHERE
IS” AND “WITH ALL KNOWN AND UNKNOWN FAULTS.” EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES EXPRESSLY CONTAINED
IN THIS Article IV (AS MODIFIED BY THE SELLER DISCLOSURE SCHEDULES) OR IN THE ANCILLARY AGREEMENTS, SELLER HEREBY DISCLAIMS
ALL LIABILITY AND RESPONSIBILITY FOR ANY REPRESENTATION, WARRANTY, PROJECTION, FORECAST, STATEMENT, OR INFORMATION MADE, COMMUNICATED
OR FURNISHED (ORALLY OR IN WRITING) TO PURCHASER OR ITS AFFILIATES OR REPRESENTATIVES (INCLUDING ANY OPINION, INFORMATION, PROJECTION
OR ADVICE THAT MAY HAVE BEEN OR MAY BE PROVIDED TO PURCHASER BY ANY DIRECTOR, OFFICER, EMPLOYEE, AGENT, CONSULTANT OR REPRESENTATIVE
OF SELLER OR ANY OF ITS AFFILIATES). SELLER MAKES NO REPRESENTATIONS OR WARRANTIES TO PURCHASER REGARDING THE PROBABLE SUCCESS
OR PROFITABILITY OF THE PURCHASED ASSETS OR THE PRODUCT. 


 




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Article
V



REPRESENTATIONS AND WARRANTIES OF PURCHASER


 


Except as set forth in the
section of the disclosure schedules attached hereto that relates to such Section of this Agreement (the “Purchaser Disclosure
Schedules”), Purchaser hereby represents and warrants to Seller as follows:


 


Section
5.1           Organization and Qualification. Purchaser is
a corporation duly organized, validly existing and in good standing under the Laws of the jurisdiction of its incorporation and
has full corporate power and authority to conduct its business as it is presently being conducted and to own and lease its properties
and assets.


 


Section
5.2           Corporate Authorization. No vote of holders
of capital stock of Purchaser or any of its Affiliates is necessary to approve this Agreement or the transactions contemplated
by this Agreement.  Purchaser has all requisite corporate power and authority to execute and deliver this Agreement and each
Ancillary Agreement to which it will be a party, and to perform its obligations hereunder and thereunder. The execution, delivery
and performance by Purchaser of this Agreement and each such Ancillary Agreement, and the performance by Purchaser of its obligations
hereunder and thereunder, have been duly authorized by all requisite or other legal entity action on the part of Purchaser.


 


Section
5.3           Binding Effect. This Agreement has been duly
executed and delivered by Purchaser and constitutes a valid and binding obligation of Purchaser, and each Ancillary Agreement
will be, prior to the Closing, duly executed and delivered by Purchaser and will, after the Closing, constitute a valid and binding
obligation of Purchaser, in each case, enforceable against Purchaser in accordance with its terms subject to the Bankruptcy and
Equity Exception.


 




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Section
5.4           No Conflict; Consents. The execution, delivery
and performance by Purchaser of this Agreement, and the consummation of the transactions contemplated hereby, do not and will
not (i) violate any provision of the certificate of incorporation, bylaws or other organizational documents of Purchaser; (ii)
result in a breach of, or default under, or right to accelerate with respect to, any term or provision of any Contract to which
Purchaser or any of its Affiliates is a party or is subject; (iii) assuming compliance with the matters set forth in Section
4.4 and Section 5.5, violate or result in a breach of or constitute a default under any Law or other restriction of
any Governmental Authority to which Purchaser is subject; or (iv) require any consents, waivers, authorizations or approvals of,
filings with, any Persons which have not been obtained by Purchaser (other than as contemplated by Section 5.5).


 


Section
5.5           Governmental Authorization. The execution and
delivery of this Agreement by Purchaser do not and will not require any material consent or approval of any Governmental Authority,
except for the consents or approvals set forth in Schedule 5.5 of the Purchaser Disclosure Schedules.


 


Section
5.6           Financing. Purchaser has, and will have at
the Closing, sufficient immediately available funds necessary to pay the Purchase Price, to consummate the transactions contemplated
by this Agreement and to perform its obligations in connection with this Agreement and such transactions and to pay any expenses
it incurs in connection therewith. In no event shall the receipt or availability of any funds or financing by Purchaser or any
of its Affiliates in connection with the transactions contemplated by this Agreement be a condition to any of Purchaser’s
obligations hereunder.


 


Section
5.7           Compliance with Laws.


 


(a)          The
businesses of each of Purchaser and its Subsidiaries are being conducted in compliance in all material respects with applicable
Laws. No material audit or, to the Knowledge of Purchaser, investigation, or review by any Governmental Authority with respect
to Purchaser or any of its Subsidiaries is pending or, to the knowledge of Purchaser, threatened, nor has any Governmental Authority
indicated an intention to conduct the same, in each case which would be reasonably expected to adversely affect the Exploitation
of the Product or Purchaser's ability to consummate the Transaction.


 


(b)          Purchaser
and each of its Subsidiaries has obtained and is in compliance with all licenses necessary for it to own, lease or operate its
properties, rights and other assets and to conduct its business and operations as presently conducted in all material respects
and all such licenses are in full force and effect in all material respects. No material default under, or material violation of,
any material License has occurred. To Purchaser’s knowledge there is not currently threatened any revocation, adverse modification
or cancellation of any material license.


 




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Section
5.8           Condition of the Purchased Assets. PURCHASER
ACKNOWLEDGES AND AGREES THAT IT (I) HAS MADE ITS OWN INQUIRY AND INVESTIGATION INTO, AND, BASED THEREON, HAS FORMED AN INDEPENDENT
JUDGMENT CONCERNING SELLER, THE PURCHASED ASSETS, THE PRODUCT, THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, THE ASSUMED LIABILITIES
AND ANY OTHER ASSETS, RIGHTS OR OBLIGATIONS TO BE TRANSFERRED HEREUNDER OR PURSUANT HERETO, AND (II) HAS BEEN FURNISHED WITH,
OR GIVEN ADEQUATE ACCESS TO, SUCH INFORMATION ABOUT SELLER, THE PURCHASED ASSETS, THE PRODUCT, THE ASSUMED LIABILITIES AND ANY
OTHER RIGHTS OR OBLIGATIONS TO BE TRANSFERRED HEREUNDER OR PURSUANT HERETO, AS IT HAS REQUESTED. EXCEPT FOR THE SPECIFIC REPRESENTATIONS
AND WARRANTIES EXPRESSLY MADE BY SELLER IN Article IV OF THIS AGREEMENT AND IN THE ANCILLARY AGREEMENTS, (I) PURCHASER
ACKNOWLEDGES AND AGREES THAT (A) SELLER IS NOT MAKING AND HAS NOT MADE ANY REPRESENTATION OR WARRANTY, EXPRESSED OR IMPLIED, AT
LAW OR IN EQUITY, IN RESPECT OF THE PURCHASED ASSETS, SELLER, SELLER’S AFFILIATES, OR ANY OF SELLER’S OR ITS AFFILIATES’
RESPECTIVE BUSINESSES, ASSETS, LIABILITIES, OPERATIONS, PROSPECTS OR CONDITION (FINANCIAL OR OTHERWISE), INCLUDING WITH RESPECT
TO MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY ASSETS, THE NATURE OR EXTENT OF ANY LIABILITIES, THE PROSPECTS
OF THE PURCHASED ASSETS OR THE PRODUCT, THE EFFECTIVENESS OR THE SUCCESS OF ANY OPERATIONS, OR THE ACCURACY OR COMPLETENESS OF
ANY CONFIDENTIAL INFORMATION MEMORANDA, DOCUMENTS, PROJECTIONS, MATERIAL OR OTHER INFORMATION (FINANCIAL OR OTHERWISE) REGARDING
THE PURCHASED ASSETS OR THE PRODUCT, SELLER OR SELLER’S AFFILIATES FURNISHED TO PURCHASER OR ITS REPRESENTATIVES OR MADE
AVAILABLE TO PURCHASER AND ITS REPRESENTATIVES IN SELLER’S ELECTRONIC DATA ROOM, MANAGEMENT PRESENTATIONS OR IN ANY OTHER
FORM IN EXPECTATION OF, OR IN CONNECTION WITH, THE TRANSACTIONS CONTEMPLATED HEREBY, AND (B) NO OFFICER, AGENT, REPRESENTATIVE
OR EMPLOYEE OF SELLER OR ANY OF SELLER’S AFFILIATES HAS ANY AUTHORITY, EXPRESS OR IMPLIED, TO MAKE ANY REPRESENTATIONS,
WARRANTIES OR AGREEMENTS NOT SPECIFICALLY SET FORTH IN THIS AGREEMENT AND IN THE ANCILLARY AGREEMENTS AND SUBJECT TO THE LIMITED
REMEDIES HEREIN PROVIDED; (II) PURCHASER SPECIFICALLY DISCLAIMS THAT IT IS RELYING UPON OR HAS RELIED UPON ANY SUCH OTHER REPRESENTATIONS
OR WARRANTIES THAT MAY HAVE BEEN MADE BY ANY PERSON, AND ACKNOWLEDGES AND AGREES THAT SELLER HAS SPECIFICALLY DISCLAIMED AND DOES
HEREBY SPECIFICALLY DISCLAIM ANY SUCH OTHER REPRESENTATION OR WARRANTY MADE BY ANY PERSON; (III) PURCHASER SPECIFICALLY DISCLAIMS
ANY OBLIGATION OR DUTY BY SELLER TO MAKE ANY DISCLOSURES OF FACT NOT REQUIRED TO BE DISCLOSED PURSUANT TO THE SPECIFIC REPRESENTATIONS
AND WARRANTIES SET FORTH IN Article IV OF THIS AGREEMENT OR IN THE ANCILLARY AGREEMENTS; AND (IV) PURCHASER IS ACQUIRING
THE PURCHASED ASSETS AND THE ASSUMED LIABILITIES IN “AS IS” CONDITION AND ON A “WHERE IS” BASIS, SUBJECT
ONLY TO THE SPECIFIC REPRESENTATIONS AND WARRANTIES SET FORTH IN Article IV OF THIS AGREEMENT (AS MODIFIED BY THE SELLER
DISCLOSURE SCHEDULE ) OR IN THE ANCILLARY AGREEMENTS AS FURTHER LIMITED BY THE SPECIFICALLY BARGAINED FOR EXCLUSIVE REMEDIES SET
FORTH IN Article IX.


 




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Section
5.9           Litigation. There is no material action, order,
writ, injunction, judgment or decree outstanding, or Proceeding, labor dispute (other than routine grievance procedures or routine,
uncontested claims for benefits under any benefit plans for any officers, employees or agents of Purchaser), arbitration, investigation
or reported claim, pending or, to the Knowledge of Purchaser, threatened, before any court, Governmental Authority or arbitrator,
which seeks to delay or prevent the consummation of the transactions contemplated by this Agreement or would, if successful, materially
and adversely affect the Business or the Purchased Assets or ability of Purchaser to consummate the transactions contemplated
by this Agreement.


 


Section
5.10         Brokers. No broker, finder or investment banker is entitled
to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by or on behalf of Purchaser.


 


Section
5.11         Solvency. Immediately after the Closing, and after giving
effect to the transactions contemplated by this Agreement, Purchaser will be Solvent.


 


Article
VI



COVENANTS


 


Section
6.1           Information and Documents. (a) From and
after the date hereof and pending Closing, upon reasonable advance notice, Seller shall (and shall cause each of its Affiliates
to) (i) permit Purchaser and its Representatives to have reasonable access, during regular business hours to all offices and facilities,
and the assets, books, records, agreements, documents, data, files and personnel of, and such other information relating to the
Purchased Assets (including the Books and Records), (ii) furnish, or cause to be furnished, to Purchaser any financial and operating
data and other information that is available with respect to Seller’s Purchased Assets as Purchaser from time to time reasonably
requests and (iii) instruct the personnel, and their counsels and financial advisors to cooperate with Purchaser in its investigation
of the Purchased Assets, including instructing its accountants to give Purchaser access to their work papers; provided,
however, that no such access shall unreasonably interfere in any material respect with Seller’s or any of its Affiliate’s
operation of business; and provided further that Seller may restrict the foregoing access to the extent that (A) in
the opinion of Seller’s counsel (a copy of which is provided to Purchaser), any applicable Law requires Seller or any of
its Affiliates to restrict or prohibit access to any information, (B) in the reasonable judgment of Seller, the disclosure
of information would result in Seller or any of its Affiliates being in violation of confidentiality obligations to a third party,
or (C) disclosure of any such information or document could result in the loss or waiver of the attorney-client privilege.
If Seller seeks to withhold information from Purchaser for any reason permitted by this Section 6.1, Seller and Purchaser
shall cooperate in good faith to implement appropriate and mutually agreeable measures to permit the disclosure of such information
in a manner to remove the basis for the objection, including by arrangement of appropriate clean room procedures, redaction or
entry into a customary joint defense agreement with respect to any information to be so provided. It is further agreed that, prior
to Closing, except for announcements or filings required by applicable securities laws, Purchaser and its Representatives shall
not make any announcements or statements targeted at, or otherwise communicate directly with, any of the customers, manufacturers
or suppliers of Seller or its Affiliates, in connection with the transactions contemplated by this Agreement, whether in person
or by telephone, mail or other means of communication, without the specific prior authorization by Seller, which authorization
shall not be unreasonably withheld, conditioned or delayed.


 




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(b)          Prior
to the Closing, all information received by Purchaser and given by or on behalf of Seller in connection with this Agreement and
the transactions contemplated hereby shall be held by Purchaser and its Affiliates, agents and Representatives as “Confidential
Information”, as defined in, and pursuant to the terms of, the Confidentiality Agreement.


 


Section
6.2           Conduct.


 


(a)          From
and after the date hereof until the earlier of the date on which this Agreement is terminated pursuant to ARTICLE X and
the Closing, except (1) as set forth on Schedule 6.2 of the Seller Disclosure Schedules or as otherwise required by this
Agreement or (2) as Purchaser shall otherwise consent in writing, which consent shall not be unreasonably withheld, Seller agrees
that it shall (and shall cause its Affiliates to) Exploit the Product and maintain the Purchased Assets in the ordinary course
of business, and use commercially reasonable efforts to preserve intact the Purchased Assets and related relationships with customers,
suppliers and other third parties. From and after the date hereof until the Closing, except (x) as set forth on Schedule 6.2
of the Seller Disclosure Schedules or as otherwise required by this Agreement, or (y) as Purchaser shall otherwise consent in writing,
which consent shall not be unreasonably withheld, Seller covenants and agrees that, with respect to its Purchased Assets, it shall
(and shall cause its Affiliates to):


 


(i)          not
incur, create or assume any Lien, other than Permitted Encumbrances;


 


(ii)         not
incur or suffer to exist any indebtedness except (A) for working capital borrowings incurred in the ordinary course of business,
(B) incurrence of trade payables in the ordinary course of business or (C) indebtedness incurred in the ordinary course
of business or (D) indebtedness incurred solely in connection with Retained Liabilities or Excluded Assets;


 


(iii)        not
amend, modify or terminate any material term of, or waive any material right under, any Assumed Contract or amend or modify any
agreement that would increase the liability of Purchaser under the Services Agreement;


 


(iv)        not
enter into any Contract, agreement or commitment that would constitute an Assumed Contract if it were in effect on the date of
this Agreement or would increase the liability of Purchaser under the Services Agreement;


 


(v)         not
divest, sell, assign, license, transfer, abandon, cancel, convey, lease or otherwise dispose of any assets that would constitute
Purchased Assets;


 


(vi)        not
adopt a plan or agreement of complete or partial liquidation, dissolution, merger, consolidation, restructuring, recapitalization
or other material reorganization of Seller;


 




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(vii)       not
change the accounting policies or procedures except to the extent required to conform with GAAP;


 


(viii)      not
settle any Proceeding (i) that would (A) materially affect the Exploitation of any Product after the Closing or adversely
affect, in a material manner, the expected Net Sales or Gross Profit of the Product in respect of the period after the Closing
or (B) result in its operations with respect to any Product being subject to any Governmental Order or other equitable relief
or admission of wrongdoing or (ii) for an amount, individually or in the aggregate, exceeding [***]; provided, that
clause (ii) shall not apply to any Proceeding that is solely related to a Retained Liability;


 


(ix)         submit
all adverse event reports required to be submitted to any Governmental Authority under any Law;


 


(x)          not
dispose of or permit to expire, terminate or otherwise lapse any rights in, to or for the use of any Purchased Intellectual Property
that is material to the Exploitation of the Product;


 


(xi)         not
grant any license, covenant not to sue or other right under any Purchased Intellectual Property;


 


(xii)        not
offer any discounts or sales promotions other than as required under Contracts existing as of January 1, 2017;


 


(xiii)       not
issue any purchase orders that would result in delivery of any additional Product; and


 


(xiv)      not
authorize, agree or resolve or consent to any of the foregoing.


 


(b)          Nothing
contained in this Agreement is intended to give Purchaser, directly or indirectly, the right to control or direct any Seller’s
or its Affiliate’s businesses or operations prior to the consummation of the transactions contemplated by this Agreement.
Prior to the consummation of the transactions contemplated by this Agreement, Seller and Purchaser shall exercise, consistent with
and subject to the terms and conditions of this Agreement, complete control and supervision over their respective operations.


 


Section
6.3           Member Approvals; Efforts to Consummate Generally.


 


(a)          On
or prior to the date hereof, Seller shall obtain all approvals of its and its Affiliates' members, board of managers or analogous
governing body required to be obtained under Seller’s and its Affiliates organizational documents and applicable Law in order
to consummate the transactions contemplated by this Agreement.


 




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(b)          Subject
to the terms and conditions of this Agreement (and without limiting the requirements of Section 6.3, each Party shall use
its reasonable best efforts to cause the Closing to occur as soon as possible after the date hereof, including (i) satisfying
the conditions precedent set forth in Article VIII within the control of such Party and (ii) drafting, negotiating,
executing and delivering to each other in good faith such other agreements, documents, instruments and/or certificates, and doing
such other acts and things, as may be reasonably necessary or desirable for the implementation of this Agreement and the Ancillary
Agreements and the consummation of the transactions contemplated hereby and thereby.


 


(c)          Seller
shall use commercially reasonable best efforts to give all notices to, make all filings with and obtain all third party consents,
including the Required Third Party Consents, necessary to be obtained from any Persons (including Governmental Authorities) to
consummate the transactions contemplated hereby and by the Ancillary Agreements without resulting in any breach or violation of,
a default under, or an acceleration of any obligations or the creation of a Lien on the Product or the Purchased Assets (without
the expenditure of any funds therefor other than filing, recordation or similar fees and related legal fees and expenses, which
shall be borne by Seller).


 


(d)          Promptly
following the Closing, Seller shall provide written notice to AstraZeneca UK Limited of the consummation of the transactions contemplated
hereby, which notice shall be in form and substance mutually agreeable to Seller and Purchaser.


 


Section
6.4           Bulk Transfer Laws. Notwithstanding anything
else to the contrary in this Agreement, Purchaser hereby waives compliance by Seller with the requirements and provisions of any
“bulk-transfer” Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of
the Purchased Assets to Purchaser.


 


Section
6.5           Insurance. As of the Closing Date, the coverage
under all insurance policies related to the Purchased Assets shall continue in force only for the benefit of Seller and not for
the benefit of Purchaser or any of its Affiliates, except to the extent set forth herein. Purchaser agrees to arrange for its
own insurance policies with respect to the Purchased Assets covering all periods and, except in connection with enforcing its
rights to indemnification pursuant to Article IX, agrees not to seek, through any means, to benefit from any of Seller’s
insurance policies that may provide coverage for claims relating in any way to the Purchased Assets prior to the Closing.


 


Section
6.6           Trade Notification. Subject to the provisions
set forth below, Seller and Purchaser shall agree on the method and content of the notifications to customers of the sale of the
Purchased Assets to Purchaser. Seller and Purchaser agree that said notifications are to provide sufficient advance notice of
the sale and the plans associated therewith.


 


Section
6.7           Seller-Labeled Product.


 


(a)          From
and after Closing, Purchaser and its Affiliates may use, reproduce and display, and Seller hereby grants (effective upon Closing)
to Purchaser and its Affiliates, a non-exclusive, paid-up and royalty-free right and license to use, reproduce and display, the
NDC Numbers, company names, company marks and company trade dress of Seller and its Affiliates and distributors related to the
Product (collectively, the “Seller Company Identifiers”), solely to the extent the foregoing are affixed to:
(i) the Purchased Inventory of finished, packaged Product that are included in the Purchased Assets, or (ii) in respect of rebate
coupons or other promotional materials related to Product bearing Seller’s NDC Numbers consistent with past practice; provided,
that the license set forth in this Section 6.7(a) shall continue until Purchaser and its Affiliates have disposed
of all such Purchased Inventory.


 




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(b)          Except
as set forth in Section 6.7(a), Purchaser and its Affiliates shall have no right under this Agreement to use any of the
trademarks, service marks, brand names, certification marks, trade dress, logos or domain names containing the name of any Seller
or any of their respective Affiliates or distributors, or any word or expression confusingly similar thereto or constituting an
abbreviation or extension thereof or any logos containing or comprising the foregoing or any NDC Numbers of Seller or any of their
respective Affiliates or distributors.


 


(c)          Immediately
following the Closing, Seller shall destroy and/or cause the destruction of all Excluded Inventory and promptly provide Purchaser
with written confirmation thereof.


 


(d)          Seller
shall deliver to Purchaser copies of wholesaler inventory reports and an inventory report from [***], each as of the day prior
to the Closing Date, no later than February 27, 2017.


 


Section
6.8           NDC Numbers.


 


(a)          As
soon as reasonably possible, but in any event no later than nine (9) months after the Closing Date, Purchaser shall obtain a new
NDC Number and labeler code for the Product. Purchaser, at its own expense, shall prepare and file with the FDA any and all reports,
documents and materials, and take such other actions, as are necessary to undertake the foregoing.


 


(b)          Purchaser
shall fully reimburse Seller and its Affiliates and distributors for any increased cost or Liability (including any returns, rebates
or chargeback claims) incurred by them and associated with any changes in pricing, including any changes in wholesale acquisition
cost, made by Purchaser or any of its Affiliates to any Product that bears an NDC Number of Seller or any of its Affiliates. Purchaser
shall pay any such reimbursement within thirty (30) days of receiving a written request for such reimbursement from Seller, which
shall be accompanied by supporting documentation that reasonably evidences the increased cost or Liability to be reimbursed. Purchaser
shall notify Seller promptly of any such changes in pricing to a Product that bears an NDC Number of Seller or any of its Affiliates
or distributors.


 


(c)          Purchaser
shall fully cooperate with Seller and its Affiliates and distributors by providing whatever assistance, product sales and other
information and access as may be required by Seller or any of its Affiliates or distributors to comply with any reporting obligations
that arise as a result of the sale by Purchaser of Product bearing an NDC Number of Seller or any of its Affiliates, and to enable
Seller and its Affiliates, one time within the period of 12 months from and after the date of last commercial sale to an end customer
of Product bearing an NDC Number of Seller or any Affiliate thereof, to audit the books and records of Purchaser and its Affiliates
with respect to any such sales (provided, that such audit takes place upon reasonable advance written notice to Purchaser,
during normal business hours of Purchaser and does not materially interfere with Purchaser’s business). Purchaser represents
and warrants that all Product sales and other information provided to Seller or any of its Affiliates or distributors in connection
with the foregoing shall be accurate and complete in all material respects, and shall be calculated in accordance with applicable
Laws and regulatory guidance.


 




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(d)          Subject
to appropriate confidentiality protection, after the Closing Date and for a period of [***] years thereafter (except with respect
to government claims not subject to a statute of limitations, such as Medicaid rebate claims, which shall continue as long as there
is potential for a claim), Purchaser and its Affiliates shall reasonably cooperate (at Seller’s expense) with Seller and
its Affiliates, distributors and Representatives, subject to confidentiality protections reasonably satisfactory to Purchaser,
during normal business hours and upon reasonable advance notice, to provide reasonable access to records maintained by Purchaser
and its Affiliates relating to Purchaser and its Affiliates’ distribution of Seller’s Seller-Labeled Product or related
regulatory filing and reporting requirements and activities with respect to Seller’s Seller-Labeled Product, including, without
limitation, government price reporting (“Distribution Activities”), to provide reports reasonably requested
by Seller or its Affiliates or distributors regarding such records and information, and to permit copying at the expense of Seller
or, for the purposes of (i) any financial reporting or Tax matters relating to Distribution Activities, (ii) any claims
or litigation involving Distribution Activities or (iii) any investigation being conducted by any federal, state or local
Governmental Authority relating to Distribution Activities.


 


Section
6.9           No-Shop.


 


(a)          From
the date hereof until the Closing or earlier termination of this Agreement in accordance with the terms hereof, Seller and its
Affiliates shall not, and shall not authorize or permit any of their Representatives to, directly or indirectly, (i) knowingly
encourage, solicit, initiate, facilitate or continue inquiries regarding an Acquisition Proposal; (ii) enter into discussions or
negotiations with, or provide any information to, any Person concerning a possible Acquisition Proposal other than to state that
Seller, its Affiliates and each of their Representatives are restricted from entering into, continuing or participating in such
discussions or negotiations pursuant to the terms of this Section 6.9; or (iii) enter into any agreements or other instruments
(whether or not binding) regarding an Acquisition Proposal. Seller and its Affiliates shall immediately cease and cause to be terminated,
and shall cause their Representatives to immediately cease and cause to be terminated, all existing discussions or negotiations
with any Persons conducted heretofore with respect to, or that could reasonably be expected to lead to, an Acquisition Proposal
and shall revoke all access in favor of any Person (other than Purchaser and its Representatives) to any virtual data room established
for the purposes of evaluating a potential acquisition of all or a part of the Purchased Assets or the Business. For purposes of
this Section 6.9, “Acquisition Proposal” shall mean any inquiry, proposal or offer from any Person (other
than Purchaser or any of its Affiliates) concerning (i) the direct or indirect purchase, whether by sale, merger or otherwise,
or license of all or any portion of the Purchased Assets (including by way of the purchase of the equity interests of Seller or
any Affiliate thereof); or (ii) the disclosure, directly or indirectly, to any Person of any confidential information or data concerning
the Purchased Assets or the Business except as necessary to conduct business in the ordinary course consistent with past practice.


 




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(b)          Seller
agrees that the rights and remedies for noncompliance with this Section 6.9 shall include having such provision specifically
enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach shall
cause irreparable injury to Purchaser and that money damages would not provide an adequate remedy to Purchaser.


 


Section
6.10         Certain Regulatory Matters. Promptly after the Closing
and in any event within thirty (30) calendar days after the Closing, Seller and Purchaser shall make all appropriate filings and
submissions with Governmental Authorities, including the Centers for Medicare & Medicaid Services, the Veteran's Administration
and the FDA to transfer all regulatory responsibilities, if any (excluding all Retained Liabilities and except as contemplated
by Section 6.8 (NDC Numbers) and the Services Agreement), attaching thereto of the Product, from Seller to Purchaser.


 


Section
6.11         Confidentiality. From and after the Closing:


 


(a)          The
Confidentiality Agreement will terminate without further action by the parties thereto.


 


(b)          Seller
shall treat (and shall cause each of its Affiliates to treat) as confidential and shall safeguard any and all information, knowledge
and data included in the Purchased Assets by using the same degree of care, but no less than a reasonable standard of care, to
prevent the unauthorized use, dissemination or disclosure of such information, knowledge and data as Seller or its Affiliates used
with respect thereto prior to the execution of this Agreement.


 


(c)          Purchaser
shall treat as confidential and shall safeguard any and all information, knowledge or data included in any information relating
to the business of Seller, other than the Business, Product, the Purchased Assets or the Assumed Liabilities, and except as otherwise
agreed to by Seller in writing; provided, however, that nothing in this Section 6.11(c) shall prevent the
disclosure of any such information, knowledge or data to any agents, advisors, directors, officers or employees of Purchaser to
whom such disclosure is necessary or desirable in the conduct of Purchaser’s business if such Persons are informed by Purchaser
of the confidential nature of such information and are directed by Purchaser to comply with the provisions of this Section 6.11(c).


 


(d)          Purchaser
and Seller acknowledge that the confidentiality obligations set forth herein shall not extend to information, knowledge and data
that is publicly available or becomes publicly available through no act or omission of the Party owing a duty of confidentiality,
or becomes available on a non-confidential basis from a source other than a party owing a duty of confidentiality so long as such
source is not known by such Party to be bound by a confidentiality agreement with or other obligations of secrecy to the other
Party.


 




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(e)          In
the event of a breach of the obligations hereunder by Purchaser or Seller, the non-breaching party, in addition to all other available
remedies, will be entitled to injunctive relief to enforce the provisions of this Section 6.11 in any court of competent
jurisdiction.


 


Section
6.12         Know-How License. Effective as of the Closing, Seller
hereby grants to Purchaser (on behalf of itself and its Affiliates) a perpetual, irrevocable, transferable (as set forth in this
Section 6.12), sublicensable (as set forth in this Section 6.12), non-exclusive, paid-up, royalty-free, worldwide
right and license to use and otherwise exploit the trade secrets, technical information, data and know-how owned by Seller or
any Affiliate of Seller related to the Product (the “Licensed Know-How”) in developing, commercializing, manufacturing,
using, packaging, marketing, promoting, importing, exporting, researching, transporting, selling and distributing the Product.
Purchaser may (but it is not obligated to) transfer the foregoing license, and/or grant sublicenses thereunder, to (a) any of
its Affiliates, and (b) any acquirer of any of the assets or business of Purchaser and its Affiliates relating to any of the Product.


 


Section
6.13         Correspondence. Seller authorizes Purchaser on and after
the Closing Date to receive and open all mail and other communications received by Purchaser relating to the Purchased Assets
and to deal with the contents of such communications in good faith and in a proper manner. Seller shall use commercially reasonable
efforts to promptly deliver, or cause to be delivered, to Purchaser any mail or other communications received by Seller or any
Affiliate of Seller from any Person (including the FDA) related to the Purchased Assets (including any mail or other communications
in respect of the Product, the subject matter of this Agreement and the Ancillary Agreements).


 


Section
6.14         Pharmacovigilance. Prior to the Closing, Seller shall
cooperate with Purchaser and shall facilitate and assist in negotiating arrangements between the third party that currently provides
pharmacovigilance services to Seller and the third party that currently provides pharmacovigilance services to Purchaser for the
reporting of adverse events and provision of other required regulating information with respect to the Product, all in form and
substance reasonably satisfactory to Purchaser. Until such arrangements are in place, Seller shall promptly report adverse events
to Purchaser to permit Purchaser to comply with applicable Law.


 


Section
6.15         [Reserved].


 


Section
6.16         Certain Financial Information. Within two (2) Business
Days after Seller obtains audited Financial Statements for the year ended December 31, 2016, but not later than June 1, 2017,
Seller shall deliver to Purchaser the audited Financial Statements of Seller for the year ended December 31, 2016, including a
balance sheet, statement of operations and statement of income and cash flows certified by the Chief Financial Officer of Seller
as (i) prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated
in the notes thereto), (ii) consistent with and were prepared from the books and records of Seller, and (iii) fairly presenting
in all material respects the financial condition, results of its operations and income and cash flows of Seller as of the date
thereof and for the period thereof, except as otherwise set forth in the notes thereto. In addition, no later than March 31, 2017,
Seller shall deliver to Purchaser the unaudited Financial Statements of Seller for the year ended December 31, 2016, including
a balance sheet, statement of operations and statement of income and cash flows certified by the Chief Financial Officer of Seller
as (A) prepared in accordance with GAAP applied on a consistent basis throughout the periods involved (except as may be indicated
in the notes thereto), (B) consistent with and were prepared from the books and records of Seller, and (C) fairly presenting in
all material respects the financial condition, results of its operations and income and cash flows of Seller as of the date thereof
and for the period thereof, except as otherwise set forth in the notes thereto.


 




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Section
6.17         Wrong-Pocket Assets. If at any time or from time to time
after the Closing Date, a Seller any of its Affiliates, on the one hand, or Purchaser or any of its Affiliates, on the other,
shall receive or otherwise possess any asset (including cash) that should belong to Purchaser or its Affiliates, on the one hand,
or Seller or its Affiliates, on the other, pursuant to this Agreement, such Person shall promptly transfer, or cause to be transferred,
such asset to the Person so entitled thereto. Prior to any such transfer in accordance with this ‎Section 6.17, the Person
receiving or possessing such asset shall hold such asset in trust for such other Person.


 


Section
6.18         Consultation and Cooperation. In connection with any claims
with respect to, or enforcement of: (i) any of Seller’s rights under warranties, guaranties, indemnitees and similar rights
against third parties, including any predecessors in title, to the extent related to the Exploitation of the Purchased Assets
and the Product prior to the Closing Date, or (ii) any other rights, claims or causes of action of Seller against third parties
in connection with the Exploitation of the Purchased Assets and the Product prior to the Closing Date, Seller hereby agrees to
consult and reasonably cooperate in good faith with Purchaser prior to the commencement of any such claim or enforcement and Seller
shall refrain from commencing any Proceeding or asserting any such right to the extent Purchaser in good faith concludes that
any such claim or enforcement may reasonably be expected to have an adverse effect on the ability of Purchaser to Exploit the
Purchased Assets and the Product in a manner consistent with Purchaser’s ordinary course of business with respect to the
Purchased Assets and the Product.


 


Article
VII



NON-COMPETE


 


Section
7.1           Non-Compete. For a period of seven (7) years
from and after the Closing Date (the “Non-Compete Period”), neither Seller nor any Affiliate thereof (which,
for the purposes of this Section 7.1, shall not include JCP IICI AIV, LP or any of its respective Affiliates) shall
market or sell, or license to any other party the right to market or sell, the Product, or any “AB-rated” generic
thereof, in the Territory (a “Competing Business”); provided, that, notwithstanding the foregoing,
Seller and its Affiliates shall not be restricted from:


 


(a)          collectively
owning less than five percent (5%) of any class of securities of any publicly traded company conducting a Competing Business if
such securities are held as a passive investment; or


 




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(b)          acquiring
one or more Persons or businesses that include within its business a Competing Business, so long as (i) the Competing Business
comprises no more than twenty-five percent (25%) of the acquired business (and is not reasonably expected to comprise more than
twenty-five percent (25%) of the acquired business prior to the end of the Non-Compete Period), based on net sales attributable
to such Competing Business as compared to the aggregate net sales of the acquired business as a whole, and (ii) Seller or its Affiliate,
as applicable, completes the sale of the Competing Business within six (6) months of the acquisition; provided, however,
that if such sale is subject to regulatory approval, then such six- (6) month period shall be extended until five (5) Business
Days after all regulatory approvals have been received, but only to the extent that the parties to such sale are using commercially
reasonable efforts to obtain any such approvals.


 


Article
VIII



CONDITIONS TO CLOSING


 


Section
8.1           Conditions to the Obligations of Purchaser and
Seller. The respective obligations of each of the Parties to consummate the transactions contemplated by this Agreement shall
be subject to the satisfaction or, to the extent permitted by applicable Law, waiver of the following conditions precedent:


 


(a)          There
shall be no Governmental Order in existence that prohibits or materially restrains the transactions contemplated by this Agreement
or the Ancillary Agreements, and there shall be no Proceeding pending by any Governmental Authority seeking such a Governmental
Order.


 


(b)          The
transactions contemplated by that certain Asset Purchase Agreement, dated as of the date hereof, by and between Holmdel Pharmaceuticals,
LP and Purchaser shall be consummated, in accordance with the terms of such purchase agreement, concurrently with the Closing.


 


Section
8.2           Conditions to the Obligations of Purchaser.
The obligation of Purchaser to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction
or, to the extent permitted by applicable Law, waiver of the following conditions precedent:


 


(a)          The
representations and warranties of Seller contained herein shall be true and correct in all material respects as of the Closing,
as if made as of the Closing (except for those representations and warranties that address matters as of a particular date, which
need be true and correct only as of such date), (disregarding for purposes of this clause (a) any Material Adverse Effect,
materiality or similar qualifier contained in such other representations and warranties, other than the representations and warranties
made in Section 4.5(a)). Purchaser shall have received a certificate of Seller, dated as of the Closing Date and signed
by an officer of Seller in such capacity, certifying as to the fulfillment of the foregoing.


 




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(b)          Seller
shall have performed in all material respects its agreements and obligations contained in this Agreement required to be performed
by it at or before the Closing. Purchaser shall have received a certificate of Seller, dated as of the Closing Date and signed
by an officer of Seller in such capacity, certifying as to the fulfillment of the foregoing.


 


(c)          Seller
shall have made or caused to be made delivery to Purchaser of the items required by Section 3.1(b).


 


(d)          No
event shall have occurred since the date hereof which has had a Material Adverse Effect.


 


Section
8.3           Conditions to the Obligations of Seller. The
obligation of Seller to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction or, to
the extent permitted by applicable Law, waiver of the following conditions precedent:


 


(a)          The
representations and warranties of Purchaser contained herein shall be true and correct in all material respects as of the Closing,
as if made as of the Closing (except for those representations and warranties that address matters as of a particular date, which
need be true in all material respects only as of such date). Seller shall have received a certificate of Purchaser, dated as of
the Closing Date and signed by an officer of Purchaser in such capacity, certifying as to the fulfillment of the foregoing.


 


(b)          Purchaser
shall have performed in all material respects its agreements and obligations contained in this Agreement required to be performed
by it at or before the Closing. Seller shall have received a certificate of Purchaser, dated as of the Closing Date and signed
by an officer of Purchaser in such capacity, certifying as to the fulfillment of the foregoing.


 


(c)          Purchaser
and its Affiliates shall have made or caused to be made delivery to Seller of the items required by Section 3.1(c).


 


Section
8.4           Frustration of Closing Conditions. Neither
of Seller or Purchaser may rely on the failure of any condition set forth in this Article VIII to be satisfied if such
failure was caused by such Party’s failure to act in good faith or to use its reasonable best efforts to cause the Closing
to occur, as required by Section 6.4.


 


Article
IX



INDEMNIFICATION


 


Section
9.1           Indemnification by Seller. Subject to the provisions
of this Article IX, from and after the Closing, Seller agrees to and shall defend, indemnify and hold harmless Purchaser
and its Affiliates, and, if applicable, their respective directors, officers, agents, employees, successors and assigns (collectively,
the “Purchaser Indemnified Parties”) from and against any Losses to the extent arising out of or related to:


 


(a)          any
breach of any representation or warranty of Seller or any Affiliate of Seller contained in this Agreement or any Ancillary Agreement,
or any failure to perform or breach by Seller or an Affiliate of Seller of any of its covenants or agreements contained in this
Agreement or any Ancillary Agreement that by their express terms contemplate performance prior to or on the Closing Date;


 




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(b)          any
failure of Seller or any Affiliate of Seller to perform or any breach by Seller or any Affiliate of Seller of any of its covenants
or agreements contained in this Agreement or any Ancillary Agreement that by their terms expressly contemplate performance after
the Closing Date; or


 


(c)          any
Retained Liability.


 


Section
9.2           Indemnification by Purchaser. Subject to the
provisions of this Article IX, from and after the Closing, Purchaser agrees to and shall defend, indemnify and hold harmless
Seller and its Affiliates, and, if applicable, their respective directors, officers, agents, employees, successors and assigns
(collectively, the “Seller Indemnified Parties”) from and against any and all Losses to the extent arising
out of or related to:


 


(a)          
any breach of any representation or warranty of Purchaser contained in this Agreement or any Ancillary Agreement, or any failure
to perform or breach by Purchaser of any of its covenants or agreements in this Agreement or any Ancillary Agreement
that by their express terms contemplate performance prior to or on the Closing Date;


 


(b)          any
failure to perform or breach by Purchaser of any of its covenants or agreements in this Agreement or any Ancillary Agreement that
by their terms expressly contemplate performance after the Closing Date;


 


(c)          any
Assumed Liability, or


 


(d)          the
Exploitation of the Product by the Purchaser following the Closing (except for Liabilities expressly agreed to be borne by Seller
pursuant to this Agreement or any Ancillary Agreement).


 


Section
9.3           Notice of Direct Claims. (a) If any of
the Persons to be indemnified under this Article IX (the “Indemnified Party”) has suffered or incurred
any Loss subject to indemnification under this Article IX that does not involve a Third Party Claim, the Indemnified Party
shall so notify the Party responsible for providing indemnification therefor under this Agreement (the “Indemnifying
Party”) promptly in a writing describing such Loss, the basis for indemnification hereunder, the amount or estimated
amount of such Loss, if known or reasonably capable of estimation, and the method of computation of such Loss, all with reasonable
particularity and containing a reference to the provisions of this Agreement in respect of which such Loss shall have occurred
(an “Indemnity Notice”). A failure by the Indemnified Party to give notice in a timely manner pursuant to this
Section 9.3 shall not limit the obligation of the Indemnifying Party under this Article IX, except (i) to the extent
such Indemnifying Party is materially prejudiced thereby or (ii) as provided by Section 9.5. In the event that the Indemnifying
Party agrees to or is determined to have an obligation to reimburse the Indemnified Party for Losses as provided in this Article
IX, the Indemnifying Party shall, subject to the provisions of Section 9.6, promptly (but, in any event, within 30
calendar days) pay such amount to the Indemnified Party by wire transfer of immediately available funds to the account specified
in writing by the Indemnified Party; provided, that the Indemnifying Party may defer making such payment if it objects
in a written statement to the claim made in an Indemnity Notice and delivers such statement to the Indemnifying Party prior to
the expiration of such 30- calendar day period; provided, further that an Indemnifying Party’s failure to
object within such 30- calendar day period to any claim set forth in an Indemnity Notice shall be deemed to be the Indemnifying
Party’s acceptance of, and waiver of any objections to, such claim. If an Indemnifying Party shall so object in writing
to any claim or claims made in any Indemnity Notice, the Indemnifying Party and the Indemnified Party shall attempt in good faith
for a period of 20 calendar days following the Indemnified Party’s receipt of such objection notice to agree upon the respective
rights of the parties with respect to each of such claims. If no such agreement can be reached after such 20- calendar day period
of good faith negotiation, either the Indemnifying Party or the Indemnified Party may initiate a Proceeding for purposes of having
the matter settled in accordance with the terms of this Agreement.


 




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(b)          Except
when a notice, report or other filing must be filed immediately pursuant to applicable Law, Purchaser shall provide notice and
an opportunity to comment to Seller before Purchaser files any report, notification or filing with any Governmental Authority or
third party in connection with an event that would be reasonably likely to result in a Loss subject to the indemnification provisions
of Section 9.1. In the event Purchaser is required to file a report, notification or filing immediately, Purchaser shall,
to the extent permitted by Law provide simultaneous notice to Seller when it submits such report, notification or filing to the
applicable Governmental Authority.


 


Section
9.4           Third Party Claims.


 


(a)          If
any Proceeding is instituted by or against a third party with respect to which the Indemnified Party intends to seek indemnity
under this Article IX (a “Third Party Claim”), the Indemnified Party shall promptly notify the Indemnifying
Party of such Third Party Claim and tender to the Indemnifying Party the conduct or defense of such Third Party Claim. A failure
by the Indemnified Party to give notice and to tender the conduct or defense of the Third Party Claim in a timely manner pursuant
to this Section 9.4 shall not limit the obligation of the Indemnifying Party under this Article IX, except (i) to
the extent such Indemnifying Party is materially prejudiced thereby, (ii) with respect to out-of-pocket expenses incurred during
the period in which notice was not provided, and (iii) if such notice is not given within the applicable time period provided under
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(b)          The
Indemnifying Party shall have the right to defend the Indemnified Party against such Third Party Claim as provided herein. If the
Indemnifying Party notifies the Indemnified Party that the Indemnifying Party elects to assume the defense of the Third Party Claim
(such election to be without prejudice to the right of the Indemnifying Party to dispute whether such claim is an indemnifiable
Loss under this Article IX), then the Indemnifying Party shall have the right to defend such Third Party Claim with counsel
selected by the Indemnifying Party and reasonably satisfactory to the Indemnified Party, in all appropriate proceedings, to a final
conclusion or settlement in accordance with this Section 9.4(b). The Indemnifying Party shall use reasonably diligent and
good faith efforts to defend or prosecute such Third Party Claim and shall keep the Indemnified Party reasonably advised of the
status of such claim and defense thereof and shall consider in good faith recommendations made by the Indemnified Party with respect
thereto. The Indemnifying Party shall have full control of such defense and proceedings, including any compromise or settlement
thereof; however, neither Party shall enter into any settlement agreement without the written consent of the Indemnified Party
(which consent shall not be unreasonably withheld, conditioned or delayed). Notwithstanding the foregoing, such consent shall not
be required if (i) the settlement agreement contains a complete and unconditional general release by the third party asserting
the Third Party Claim to all Indemnified Parties affected by the claim, (ii) the settlement agreement does not contain any admission
of liability by or other obligation on the part of the Indemnified Party or sanction or restriction upon the conduct or operation
of any business by the Indemnified Party or its Affiliates and (iii) the settlement does not require any payment to be made by
the Indemnified Party to any Person. The Indemnified Party may participate in, but not control, any defense or settlement of any
Third Party Claim controlled by the Indemnifying Party pursuant to this Section 9.4(b), and the Indemnified Party shall
bear its own costs and expenses with respect to such participation; provided, however, that if the Indemnifying
Party assumes control of the defense of such claim and the Indemnifying Party and the Indemnified Party have, in the opinion of
legal counsel, materially conflicting interests or different defenses available with respect to such claim that cause the Indemnified
Party to hire its own separate counsel with respect to such proceeding, the reasonable fees and expenses of a single counsel to
the Indemnified Party shall be considered “Losses” for purposes of this Agreement.


 


(c)          If
the Indemnifying Party does not notify the Indemnified Party that the Indemnifying Party elects to defend the Indemnified Party
pursuant to Section 9.4(b) within thirty (30) calendar days after receipt of any Claim Notice, then the Indemnified Party
shall defend, and be reimbursed by the Indemnifying Party for its reasonable cost and expense in regard to the Third Party Claim
with counsel selected by the Indemnified Party, in all appropriate proceedings, which proceedings shall be prosecuted diligently
by the Indemnified Party; provided, that if it is ultimately determined that the Indemnified Party would not be entitled
to indemnification hereunder, even if the facts alleged in the Third Party Claim were true as alleged, the Indemnified Party shall
promptly repay in full such reimbursed amounts to the Indemnifying Party. In the circumstances described in this Section 9.4(c),
the Indemnified Party shall defend any such Third Party Claim in good faith and have full control of such defense and proceedings;
provided, however, that the Indemnified Party may not enter into any compromise or settlement of such Third Party
Claim if indemnification is to be sought hereunder, without the Indemnifying Party’s consent (which consent shall not be
unreasonably withheld, conditioned or delayed). The Indemnifying Party may participate in, but not control, any defense or settlement
controlled by the Indemnified Party pursuant to this Section 9.4(c), and the Indemnifying Party shall bear its own costs
and expenses with respect to such participation.


 


(d)          If
requested by the Party controlling the defense of a Third Party Claim, the other Party agrees, at the sole cost and expense of
such controlling Party (but only if the controlling Party is actually entitled to indemnification hereunder), to cooperate with
the controlling Party and its counsel in contesting any Third Party Claim being contested, including providing access to documents,
records and information. In addition, the Party that is not controlling the defense will make its personnel available at no cost
to the Indemnifying Party for conferences, discovery, proceedings, hearings, trials or appeals as may be reasonably required by
the Indemnifying Party. The Party not controlling the defense also agrees to cooperate with the controlling Party and its counsel
in the making of any related counterclaim against the Person asserting the Third Party Claim or any cross complaint against any
Person and executing powers of attorney to the extent necessary.


 




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Section
9.5           Expiration. Each Party’s obligation to
indemnify any Indemnified Party under this Article IX shall expire and terminate as follows, unless a claim therefor is
asserted in writing in accordance with the terms of this Agreement prior to the applicable survival date, failing which such claim
shall be waived and extinguished: the date that is (i) thirty (30) days after the statute of limitations expires with respect
to any claim for indemnification under based on a breach of Section 4.1, Section 4.2, Section 4.10(a), Section
5.1, or Section 5.2 (“Fundamental Representations”), (ii) twelve (12) months from the Closing Date,
in the case of any claim for indemnification based on the representations or warranties of the other Party contained in this Agreement
other than the Fundamental Representations and Section 4.16, or (iii) the [***] anniversary of the Closing Date in the
case of indemnification for a breach of Section 4.16 or in respect of any other matter not addressed in the foregoing sub-clauses
(i) or (ii) or (iii), excluding claims related to Section 9.1(b), Section 9.1(c), Section
9.2(b), Section 9.2(c) or Section 9.2(d). Each Party’s obligation to indemnify any Indemnified Party in
connection with Section 9.1(b), Section 9.1(c), Section 9.2(b), Section 9.2(c) or Section 9.2(d),
as applicable, shall, in each case, survive indefinitely. For the avoidance of doubt, none of the covenants or agreements contained
in this Agreement shall survive the Closing other than those that by their terms expressly contemplate performance after the Closing
Date, which such covenants and agreements shall survive the Closing until fully performed.


 


Section
9.6           Limitations on Indemnification and other Matters.


 


(a)          De
Minimis. Notwithstanding any other provision of this Agreement to the contrary, no Indemnifying Party shall be required to
indemnify, defend or hold harmless any Indemnified Party pursuant to Section 9.1(a) or Section 9.2(a) against, or
reimburse any Indemnified Party for, any Losses with respect to any individual claims (or series of related claims) unless such
claim (or series of claims) involves Losses in excess of [***] (nor shall such item be applied to or considered for purposes of
calculating the Indemnity Threshold).


 


(b)          Threshold.
Except for Losses arising out of a breach of a Fundamental Representation, no Indemnifying Party shall be liable to provide indemnification
pursuant to Section 9.1(a) or Section 9.2(a) for any Losses suffered by any Indemnified Party unless the aggregate
of all Losses suffered by the Indemnified Parties exceeds, on a cumulative basis, an amount equal to [***] (the “Indemnity
Threshold”), and then an Indemnifying Party shall only be liable to provide indemnification to the extent of any such
excess Losses.


 


(c)          Cap.
In no event shall any Indemnified Party be liable to provide indemnification pursuant to Article IX for Losses in the aggregate
in excess of an amount equal to [***] (the “Cap”), other than with respect to claims for indemnification for
Losses arising out of any Retained Liability or the breach of a Fundamental Representation, fraud or intentional misconduct of
an Indemnifying Party in respect of a provision of this Agreement. In no event shall an Indemnifying Party be liable for Losses
in excess of an aggregate amount equal to the Purchase Price.


 




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(d)          Waiver.
The waiver of any condition based on the accuracy of any representation or warranty, or on the performance of or compliance with
any such covenant or agreements, will not affect the right to indemnification or any other remedy based on such representations,
warranties, covenants and agreements.


 


(e)          Read
Out of Materiality Qualifiers. Solely for purposes of calculating Losses hereunder, any materiality or Material Adverse Effect
qualifications in the representations (other than Section 4.5(a) above), warranties, covenants and agreements herein shall
be disregarded.


 


(f)          Exclusion
of Certain Damages. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, EXCEPT TO THE EXTENT ARISING OUT OF OR ASSERTED
IN A THIRD PARTY CLAIM OR ARISING OUT OF A RETAINED LIABILITY OR AN ASSUMED LIABILITY OR FRAUD OR INTENTIONAL MISCONDUCT, NO INDEMNIFIED
PARTY SHALL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, TREBLE, REMOTE, SPECIAL, EXEMPLARY, OPPORTUNITY COST, CONSEQUENTIAL OR PUNITIVE
DAMAGES OR DAMAGES FOR, MEASURED BY OR BASED ON LOST PROFITS, LOSS OF REVENUE OR INCOME, DIMUNITION IN VALUE, MULTIPLE OR EARNINGS,
PROFITS OR CASH FLOWS, OR OTHER SIMILAR MEASURES OR FOR ANY LOSS OF BUSINESS REPUTATION OR OPPORTUNITY THAT ARISES OUT OF OR RELATES
TO THIS AGREEMENT OR THE PERFORMANCE OR BREACH HEREOF.


 


(g)          Adjustment
to Purchase Price. Seller and Purchaser agree to treat all payments made either to or for the benefit of the other Party under
this Agreement (including all payments made pursuant to Section 2.7(g) or Article IX) as adjustments to the Purchase
Price for Tax purposes to the extent permitted under applicable Tax Law.


 


Section
9.7           Losses Net of Insurance, Etc. Any indemnifiable
Losses with respect to any matter shall be net of (i) any amounts recovered by the Indemnified Party pursuant to any indemnification
by or indemnification agreement with any third party and (ii) any insurance proceeds or other cash receipts or sources of reimbursement
received as an offset against such Loss (each Person named in clauses (i) and (ii), a “Collateral Source”),
in each case net of any costs of recovery or collection from any such Collateral Source. No Indemnifying Party shall have an indemnification
payment obligation in respect of any contingent liability unless and until such liability becomes due and payable.


 


Section
9.8           Reimbursement. If an Indemnified Party recovers
an amount from a Collateral Source in respect of a Loss that is the subject of indemnification hereunder after all or a portion
of such Loss has been paid by an Indemnifying Party pursuant to this Article IX, the Indemnified Party shall promptly remit
to the Indemnifying Party the amount received from the third party in respect thereof, net of all costs associated with the recovery
thereof, up to the amount of the Loss paid by the Indemnifying Party.


 




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Section
9.9           Subrogation. If the Indemnifying Party makes
any payment on any Loss pursuant to Section 9.1 or Section 9.2, the Indemnifying Party shall be subrogated, to the
extent of such payment, to all rights and remedies of the Indemnified Party to any insurance benefits or other claims of the Indemnified
Party with respect to such claim. Without limiting the generality or effect of any other provision hereof, each Indemnified Party
shall duly execute upon request all instruments reasonably necessary to evidence and perfect the subrogation rights detailed herein
and otherwise reasonably cooperate in the prosecution of such claims (at the expense of the Indemnifying Party).


 


Section
9.10         Sole Remedy/Waiver. Should the Closing occur, the remedies
provided for in this Article IX shall be the sole and exclusive remedies of any Indemnified Party in respect of this Agreement,
the Ancillary Agreements, the Purchased Assets, the Product, the Excluded Assets, the Assumed Liabilities, the Retained Liabilities
or the transactions contemplated hereby or by the Ancillary Agreements, other than (i) for actions for specific performance or
other equitable remedies or (ii) for claims against a Party directly arising out of the fraud or intentional misconduct of such
Party. In furtherance of the foregoing, each Party hereby waives (on behalf of itself and the relevant Indemnified Parties) any
provision of applicable Law to the extent that it would limit or restrict the agreement contained in this Section 9.10,
and each Party hereby waives (on behalf of itself and the relevant Indemnified Parties) for periods following the Closing any
and all rights, claims or causes of action it or its Affiliates or relevant Indemnified Parties may have (other than pursuant
to this ARTICLE IX or as described in clauses (i) or (ii) of this Section 9.10) against the other Party or its Affiliates
or Representatives.


 


Article
X



TERMINATION


 


Section
10.1         Termination. This Agreement may be terminated at any time
prior to the Closing:


 


(a)          by
written agreement of Purchaser and Seller;


 


(b)          by
either Purchaser or Seller, by giving written notice of such termination to the other Party, if the Closing shall not have occurred
on or prior to March 31, 2017 (the “Outside Date”); provided, however, that the right to terminate
this Agreement pursuant to this Section 10.1(b) shall not be available to any Party hereto whose action or failure to fulfill
any obligation under this Agreement has been a principal cause of, or resulted in, the failure of the Parties to consummate the
Closing by such date;


 


(c)          by
Seller, if any of the representations or warranties of Purchaser set forth in this Agreement shall not be true and correct, or
if Purchaser has failed to perform any covenant or agreement on the part of such Purchaser set forth in this Agreement (including
an obligation to consummate the Closing), in each case, such that the conditions to the Closing set forth in Section 8.3(a)
or Section 8.3(b) would not be satisfied as of the Closing Date and the breach or breaches causing such representations
or warranties not to be true and correct, or the failures to perform any covenant or agreement, as applicable, are not cured within
twenty (20) Business Days after written notice thereof is delivered to Purchaser;


 




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(d)          by
Purchaser, if any of the representations or warranties of Seller  set forth in this Agreement shall not be true and correct,
or if Seller has failed to perform any covenant or agreement on the part of Seller set forth in this Agreement (including
an obligation to consummate the Closing), in each case, such that the conditions to the Closing set forth in Section 8.2(a)
or Section 8.2(b) would not be satisfied as of the Closing Date and the breach or breaches causing such representations
or warranties not to be true and correct, or the failures to perform any covenant or agreement, as applicable, are not cured within
twenty (20) Business Days after written notice thereof is delivered to Seller; or


 


Section
10.2          Effect of Termination. (a) In the event of the termination
of this Agreement in accordance with Section 10.1 hereof, this Agreement shall thereafter become void and have no effect,
and no Party hereto shall have any liability to the other Party hereto or their respective Affiliates, directors, officers or
employees; provided, that (i) no such termination shall relieve the obligations of the Parties hereto contained
in this Section 10.2 and in Section 6.1(b) (“Information and Documents”), Section 11.1
(“Notices”), Section 11.6 (“Public Disclosure”), Section 11.7 (“Return
of Information”), Section 11.8 (“Expenses, Transfer Taxes and Property Taxes”), Section
11.10 (“Governing Law; Jurisdiction”), Section 11.11 (“Waiver of Jury Trial”),
and Section 11.16 (“Non-Recourse”) hereof and (ii) nothing herein shall relieve any Party from Liability
for any breach of any representation, warranty or covenant set forth in this Agreement prior to such termination.


 


(b)          In
the event this Agreement shall be terminated and at such time any Party is in material breach of or default under any term or provision
hereof, such termination shall be without prejudice to, and shall not affect, any and all rights to damages that the other Party
may have hereunder or otherwise under applicable Law. The damages recoverable by the non-defaulting Party shall include all attorneys’
fees reasonably incurred by such Party in connection with the transactions contemplated hereby.


 


Article
XI



MISCELLANEOUS


 


Section
11.1         Notices.


 


(a)          All
notices, demands and other communications to be given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given (a) when personally delivered, (b) when transmitted (except if not
a Business Day then the next Business Day) via facsimile to the number set out below (with transmission confirmed) or to the address
set out below, (c) the day following the day (except if not a Business Day then the next Business Day) on which
the same has been delivered prepaid to a reputable national overnight air courier service or (d) the third Business Day following
the day on which the same is sent by certified or registered mail, postage prepaid. Notices, demands and communications, in
each case to the respective Parties, shall be sent to the applicable address or facsimile number set forth below, unless another
address or facsimile number has been previously specified in writing by such Party:


 




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To Seller:


 


Cranford Pharmaceuticals, LLC

11 Commerce Drive, 1st Floor

Cranford, New Jersey 07016

Facsimile: [Fax number]


Attn: Greg Ford,
President


 


with a copy to:


 


Lowenstein Sandler LLP

65 Livingston Avenue

Roseland, New Jersey 07068

Facsimile: [Fax number]


Attn: Michael J. Lerner


 


to Purchaser:


 


ANI Pharmaceuticals, Inc.


210 Main Street West


Baudette, MN 56623


Telephone: [Tel. number]

Facsimile: [Fax number]


Attn: Arthur Przybyl


 


with a copy to:


 


Dentons US LLP

1221 Avenue of the Americas

New York, NY 10020


Telephone: [Tel. number]

Facsimile: [Fax number]


Attn: Paul A. Gajer


 


(b)          This
Agreement and any signed agreement entered into in connection herewith or contemplated hereby, and any amendments hereto or thereto,
to the extent signed and delivered by means of a facsimile machine or scanned pages via electronic mail, shall be treated
in all manner and respects as an original contract and shall be considered to have the same binding legal effects as if it were
the original signed version thereof delivered in person. No Party hereto or to any such contract shall raise the use of a facsimile
machine or email to deliver a signature or the fact that any signature or contract was transmitted or communicated through the
use of facsimile machine or email as a defense to the formation of a contract and each such Party forever waives any such defense.
This Agreement is not binding unless and until signature pages are executed and delivered by each of Purchaser and Seller.


 




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Section
11.2         Amendment; Waiver. Any provision of this Agreement may
be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by Purchaser
and Seller, or in the case of a waiver, by the party against whom the waiver is to be effective. No failure or delay by any Party
in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.


 


Section
11.3         Assignment. No Party to this Agreement may assign any
of its rights or obligations under this Agreement; provided, that (i) either Party may assign all or part of its
rights under this Agreement without consent to any of its Affiliates, in each case, so long as such assigning Party shall remain
liable in full for the performance of its obligations hereunder and for any breach thereof by its assignee, and (ii) Purchaser
may assign all or part of its rights under this Agreement to any third party to whom it sells the Product in a single transaction.


 


Section
11.4         Entire Agreement. This Agreement (including all Schedules
and Exhibits hereto) contains the entire agreement between the Parties hereto with respect to the subject matter hereof and supersedes
all prior agreements and understandings, oral or written, with respect to such matters, except for (i) the Confidentiality Agreement
which will remain in full force and effect for the term provided for therein and (ii) any written agreement of the Parties that
expressly provides that it is not superseded by this Agreement.


 


Section
11.5         Parties in Interest. This Agreement shall inure to the
benefit of and be binding upon the Parties hereto and their respective successors and permitted assigns. Nothing in this Agreement,
express or implied, is intended to confer upon any Person other than Purchaser, Seller, or their successors or permitted assigns,
any rights or remedies under or by reason of this Agreement, provided, that (i) the provisions of Article IX
shall inure to the benefit of the Indemnified Parties and (ii) the provisions of Section 11.17 shall inure to the benefit
of the Persons referenced therein.


 


Section
11.6         Public Disclosure. Notwithstanding anything herein to
the contrary, each of the Parties to this Agreement hereby agrees with the other Parties hereto that, except as may be required
to comply with the requirements of any applicable Laws, and the rules and regulations of each stock exchange upon which the securities
of one of the Parties is listed, if any, no press release or similar public announcement or communication shall, if prior to the
Closing, be made or caused to be made concerning the execution or performance of this Agreement unless the Parties shall have
consulted in advance with respect thereto.


 


Section
11.7         Return of Information. If the transactions contemplated
by this Agreement are terminated as provided herein:


 


(a)          notwithstanding
anything in the Confidentiality Agreement to the contrary, Purchaser shall return to Seller or destroy all documents and other
material received by Purchaser, its Affiliates and their respective Representatives from Seller, or any of its respective Affiliates,
relating to the transactions contemplated hereby and by the Ancillary Agreements, whether so obtained before or after the execution
hereof; and


 




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(b)          all
confidential information received by Purchaser, its Affiliates and their respective Representatives with respect to a Seller, or
any of its respective Affiliates, the Purchased Assets and the Assumed Liabilities shall be treated in accordance with the Confidentiality
Agreement, which shall remain in full force and effect in accordance with its terms notwithstanding the termination of this Agreement.


 


Section
11.8         Expenses, Transfer Taxes and Property Taxes. (a) Except
as otherwise expressly provided in this Agreement, all costs and expenses incurred in connection with this Agreement and the transactions
contemplated hereby shall be borne by the Party incurring such expenses. Notwithstanding the foregoing, all Transfer Taxes shall
be paid 50% by Purchaser and 50% by Seller.


 


(b)          In
the case of any taxable period that includes (but does not end on) the Closing Date, real, personal and intangible property Taxes
and similar Taxes imposed with respect to the Purchased Assets (“Property Taxes”) shall be allocated between
the Pre-Closing Tax Period and the Post-Closing Tax Period on a per diem basis. Seller shall be responsible for any Property Taxes
for the Pre-Closing Period and Purchaser shall be responsible for any Property Taxes for the Post-Closing Period. Seller and Purchaser
shall promptly reimburse each other in accordance with such allocation for any such Property Taxes which any Party is required
to pay under applicable Law. Liability for any fees payable to any Governmental Authority with respect to the Purchased Assets
shall be allocated in the same manner.


 


Section
11.9         Schedules. The disclosure of any matter in the Disclosure
Schedule shall be deemed to be a disclosure with respect to any other section or subsection of ARTICLE IV of this Agreement
with respect to which its relevance is reasonably apparent on its face, but shall expressly not be deemed to constitute an admission
by Seller or Purchaser, or to otherwise imply, that any such matter is material for the purposes of this Agreement.


 


Section
11.10         Governing Law; Jurisdiction. (a) This Agreement
and its negotiation, execution, performance or non-performance, interpretation, termination, construction and all claims or causes
of action (whether in contract, in tort, at law or otherwise) that may be based upon, arise out of, or relate to this Agreement,
or the transactions contemplated hereby (including any claim or cause of action based upon, arising out of or related to any representation
or warranty made in connection with this Agreement or as an inducement to enter this Agreement), shall be exclusively governed
by, and construed in accordance with, the laws of the State of New York regardless of Laws that might otherwise govern under any
applicable conflict of laws principles.


 




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(b)          Any
Proceeding based upon, arising out of, or related to this Agreement and its negotiation, execution, performance, non-performance,
interpretation, termination, construction or the transactions contemplated hereby shall be heard and determined in the courts of
the State of New York sitting in the Borough of Manhattan and the United States District Court for the Southern District of New
York. The Parties hereto hereby irrevocably submit to the exclusive jurisdiction and venue of such courts in any such Proceeding
and irrevocably and unconditionally waive the defense of an inconvenient forum, or lack of jurisdiction to the maintenance of any
such Proceeding. The consents to jurisdiction and venue set forth herein shall not constitute general consents to service of process
in the State of New York and shall have no effect for any purpose except as provided in this Section 11.10 and shall not
be deemed to confer rights on any Person other than the Parties hereto. Each Party hereto agrees that the service of process upon
such Party in any Proceeding arising out of or relating to this Agreement shall be effective if notice is given by overnight courier
at the address set forth in Section 11.1. Each of the Parties also agrees that any final, non-appealable judgment against
a Party in connection with any Proceeding arising out of or relating to this Agreement may be enforced in any court of competent
jurisdiction, either within or outside of the United States. A certified or exemplified copy of such judgment shall be conclusive
evidence of the fact and amount of such judgment.


 


Section
11.11         WAIVER OF JURY TRIAL. TO THE FULLEST EXTENT PERMITTED
BY LAW, THE PARTIES HERETO HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY
PROCEEDING (whether in contract, in tort, at law or otherwise) BASED UPON, ARISING OUT OF, OR RELATED TO THIS AGREEMENT
OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY
AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING WITHOUT LIMITATION,
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THE PARTIES HERETO ACKNOWLEDGE
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN
ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. THE PARTIES HERETO
FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY
WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE
MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS
TO THIS AGREEMENT OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE TRANSACTIONS CONTEMPLATED HEREBY. IN THE EVENT OF LITIGATION,
THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.


 


Section
11.12         Counterparts. This Agreement may be executed in one or
more counterparts (including by facsimile or electronic .pdf submission), each of which shall be deemed an original, and all of
which shall constitute one and the same agreement and shall become effective when one or more counterparts have been signed by
each of the Parties and delivered (by telecopy or otherwise) to the other Party, it being understood that both Parties need not
sign the same counterpart.


 


Section
11.13         Headings. The heading references herein and the table
of contents hereto are for convenience purposes only, do not constitute a part of this Agreement and shall not be deemed to limit
or affect any of the provisions hereof.


 




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Section
11.14         Severability. The provisions of this Agreement shall
be deemed severable and the invalidity or unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof. If any term or other provision of this Agreement, or the application thereof to any Person or any
circumstance, is invalid, illegal or unenforceable, (a) a suitable and equitable provision shall be substituted therefor in order
to carry out, so far as may be valid and enforceable, the intent and purpose of such invalid or unenforceable provision and (b)
the remainder of this Agreement and the application of such provision to other Persons, entities or circumstances shall not be
affected by such invalidity, illegality or unenforceability, nor shall such invalidity, illegality or unenforceability affect
the validity or enforceability of such provision, or the application thereof, in any other jurisdiction.


 


Section
11.15         Specific Performance. Each of the Parties acknowledges
that the rights of each Party to consummate the transactions contemplated hereby are unique and recognizes and affirms that in
the event of a breach of this Agreement by any Party, money damages may be inadequate and the non-breaching Party may
have no adequate remedy at Law. Accordingly, the Parties agree that prior to a valid termination of this Agreement in accordance
with this Agreement, such non-breaching Party shall have the right, in addition to any other rights and remedies existing
in its favor at Law or in equity, to enforce its rights and the other Party’s obligations hereunder not only by an Proceeding
or Proceedings for damages but also by an Proceeding or Proceedings for specific performance, injunctive and/or other equitable
relief (without posting of bond or other security). Each of the Parties agrees that it shall not oppose the granting of an injunction,
specific performance and other equitable relief when expressly available pursuant to the terms of this Agreement, and hereby waives
(x) any defenses in any Proceeding for an injunction, specific performance or other equitable relief, including the defense
that the other Parties have an adequate remedy at Law or an award of specific performance is not an appropriate remedy for any
reason at Law or equity and (y) any requirement under Law to post a bond, undertaking or other security as a prerequisite
to obtaining equitable relief.


 


Section
11.16         Non-Recourse.


 


(a)          This
Agreement may only be enforced against, and any claim or cause of action based upon, arising out of or related to this Agreement
may only be brought against the entities that are expressly named as Parties hereto and then only with respect to the specific
obligations set forth herein with respect to such Party (or, in the case of Article VI and Article VII, the relevant
Affiliates of Seller). Except to the extent a named Party to this Agreement (and then only to the extent of the specific obligations
undertaken by such named Party in this Agreement) (or, in the case of Article VI and Article VII,, the relevant Affiliates
of Seller), no past, present or future director, officer, employee, incorporator, member, partner, stockholder, Affiliate, agent,
attorney or other Representative of any Party hereto shall have any liability (whether in contract or in tort, in law or in equity,
or based upon any theory that seeks to impose liability of an entity party against its owners or Affiliates) for any obligations
or liabilities of any Party hereto under this Agreement or for any claim based on, in respect of, or by reason of, the transactions
contemplated hereby or in respect of any oral representations made or alleged to have been made in connection herewith (except
with respect to claims of fraud or intentional misconduct).


 




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(b)          The
provisions of this Section 11.16 are intended to be for the benefit of, and enforceable by, the directors, officers, employees,
incorporators, members, partners, stockholders, Affiliates, agents, attorneys and other Representatives of the Parties hereto,
and each such Person shall be a third party beneficiary of this Section 11.16.


 


Section
11.17         Conflict of Interest.


 


(a)          Lowenstein
Sandler LLP (“Lowenstein”) shall be permitted to represent Seller after the Closing in connection with any matter
relating to the transactions contemplated by this Agreement. Without limiting the generality of the foregoing, after the Closing,
Lowenstein shall be permitted to represent Seller, any of its agents and Affiliates, or any one or more of them, in connection
with any negotiation or transaction with Purchaser or any of its agents or Affiliates under or relating to this Agreement, the
transactions contemplated hereby, and any related matter.


 


(b)          Dentons
US LLP (“Dentons”) shall be permitted to represent Purchaser after the Closing in connection with any matter
relating to the transactions contemplated by this Agreement. Without limiting the generality of the foregoing, after the Closing,
Dentons shall be permitted to represent Purchaser, any of its agents and Affiliates, or any one or more of them, in connection
with any negotiation or transaction with Seller or any of its agents or Affiliates under or relating to this Agreement, the transactions
contemplated hereby, and any related matter.


 


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IN WITNESS WHEREOF,
the Parties have executed or caused this Agreement to be executed as of the date first written above.


 


	 	CRANFORD PHARMACEUTICALS, LLC
	 	 	 
	 	By:	/s/ J. Gregory Ford
	 	 	Name:  J. Gregory Ford
	 	 	Title: President


 


[SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT]


 




     


    Confidential Materials Omitted and Filed Separately with the Securities and Exchange Commission Pursuant to a Request for Confidential Treatment under Rule 406 under the Securities Act of 1933, as amended. Confidential Portions are marked: [***]


    

 


	 	ANI PHARMACEUTICALS, INC.
	 	 	 
	 	By:	/s/ Stephen Carey
	 	 	Name:  Stephen Carey
	 	 	Title: VP & CFO


 


[SIGNATURE PAGE TO ASSET PURCHASE AGREEMENT]