TherapeuticsMD, Inc. 10-Q


Exhibit 10.1


 


CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM
TO THE REGISTRANT IF PUBLICLY DISCLOSED. [***] INDICATES THAT INFORMATION HAS BEEN REDACTED.


 





 


COMMERCIAL
SUPPLY AGREEMENT


 


This Commercial
Supply Agreement (the “Agreement”) is made as of the 28th day of September, 2018, by and between
TherapeuticsMD, Inc., a Nevada corporation, with a place of business at 6800 Broken Sound Parkway NW, Third Floor, Boca
Raton, Florida 33487 (“TXMD”), and QPharma AB, a Sweden corporation, having a place of business at
Agneslundsvagen 27, Malmo, Sweden (“QPharma”).


 


Each
of QPharma and TXMD is sometimes referred to herein as a “Party” and collectively as the “Parties”.


 


RECITALS


 


A.            TXMD
is a company that develops, markets and sells pharmaceutical products;


 


B.             QPharma
is a developer and contract manufacturer of a variety of pharmaceutical products and medical devices including, but not limited
to, intra-vaginal devices eluting pharmaceutical substances;


 


C.             TXMD
is the exclusive licensee of the Population Council to commercialize in the United States a certain intra-vaginal ring system
eluting segesterone acetate and ethinyl estradiol;


 


D.            QPharma
is a qualified manufacturer of such intra-vaginal ring systems; and


 


E.             TXMD
desires to engage QPharma to manufacture and supply quantities of such intra-vaginal ring systems, and QPharma desires to manufacture
and supply such quantities of intra-vaginal ring systems, all pursuant to the terms and conditions set forth in this Agreement.


 


NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties
intending to be legally bound, hereby agree as follows:


 


ARTICLE
1





DEFINITIONS


 


The
following terms have the following meanings in this Agreement:


 


1.1           “Acknowledgement”
has the meaning set forth in Section 4.3.


 


1.2           “Affiliate(s)”
means, with respect to a referenced party, whether TXMD, QPharma or a third party, any corporation, firm, partnership or other
entity that controls, is controlled by or is under common control with such referenced party. For the purposes of this definition,
“control” means the ownership of at least 50% of the voting share capital of an entity or any other comparable
equity or ownership interest or possession of the right to control the management and policies of such entity.


 




    


    


    

 


1.3           “Agreement”
has the meaning set forth in the introductory paragraph, and includes all its Attachments and other appendices agreed to by the
parties (all of which are incorporated herein by reference) and any amendments to any of the foregoing made as provided herein
or therein.


 


1.4           “API(s)”
means the compounds segesterone acetate and ethinyl estradiol, as further described in the Specifications that either (i) have
been procured and released by TXMD and provided to QPharma or (ii) have been procured and released by QPharma, in either case
along with a certificate of analysis from the manufacturer of such compounds, as provided in this Agreement.


 


1.5           “Applicable
Laws” means, with respect to TXMD, all laws, ordinances, rules and regulations of each jurisdiction in which an API
or Product is produced, marketed, distributed, used or sold; and with respect to QPharma, all laws, treaties, or ordinances, rules,
regulations, cGMP, guidances, interpretations, authorizations, judgments, directives, injunctions, or orders of any court of any
international, national, regional, local, or other governmental body, agency, authority, or court, or arbitrator, that has jurisdiction
over the location where QPharma performs services, handles or stores an API, Raw Materials or Product, and manufactures Product
under this Agreement (and applicable cGMP), including, but not limited to, the Federal Food, Drug and Cosmetic Act and Good Laboratory
Practices, in each of the foregoing cases as in effect from time-to-time.


 


1.6           “Batch”
means a defined quantity of Product that has been or is being Processed in accordance with the Specifications in a single production
run. At the date of this Agreement, the theoretical size of a commercial validated Batch is approximately [***] units of Product.


 


1.7           “Components”
means the silicon ring system and other tangible elements incorporated into or packaged with the Product, but for the avoidance
of doubt, excluding APIs.


 


1.8           “cGMP”
means current Good Manufacturing Practices promulgated by the Regulatory Authorities in the jurisdictions included in Applicable
Laws (as applicable to TXMD and QPharma, respectively). In the United States, this includes 21 C.F.R. Parts 210, 211 and 820,
as amended from time-to-time, together with pertinent guidelines and guidance documents, and in the European Union, to the extent
applicable to the manufacture, handling and storage of the Product in Sweden for shipment to, and sale in, the United States,
2003/94/EEC Directive (as supplemented by Volume 4 of EudraLex published by the European Commission), as amended, Council Directive
90/385/EEC on Active Implantable Medical Devices (AIMDD)(1990) and Council Directive 93/42/EEC on Medical Devices (MDD) (1993),
as amended, supplemented and superseded from time-to-time, together with pertinent guidelines and guidance documents then in effect.


 


1.9           “Commencement
Date” means the first day of the Initial Pricing Term as established pursuant to Section 7.1, provided such date follows
approval by a Regulatory Authority of QPharma as a manufacturer of the Product.


 


1.10         “Confidential
Information” has the meaning set forth in Section 10.1.


 


1.11         “Contract
Year” means each consecutive twelve (12) month period beginning on the Commencement Date or anniversary thereof, as
applicable.


 




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1.12         “Defective
Product” has the meaning set forth in Section 5.2.


 


1.13         “Discloser”
has the meaning set forth in Section 10.1.


 


1.14         “Effective
Date” means July 26, 2018, [***].


 


1.15         “Exception
Notice” has the meaning set forth in Section 5.2.


 


1.16         “Facility”
means QPharma’s facility located in Malmo, Sweden, or such other facility as agreed by the parties in writing.


 


1.17         “Initial
Pricing Term” has the meaning set forth in Section 7.1.


 


1.18         “Initial
Term” means the period of time commencing as of July 26, 2018, and ending on July 26, 2024.


 


1.19         “Index”
has the meaning set forth in Section 7.2.


 


1.20         “Losses”
has the meaning set forth in Section 13.1.


 


1.21         “Marks”
means trademarks, trade names, service marks, logos and symbols.


 


1.22         “Process”
or “Processing” means the compounding, filling, manufacturing, producing, testing and packaging of APIs, TXMD-supplied
Materials, if any, and Raw Materials into Product by QPharma, and their handling, storage and delivery in accordance with the
Specifications and under the terms of this Agreement.


 


1.23         “Processing
Date” means the day on which the first step of physical Processing is scheduled to occur, as identified in an Acknowledgement.


 


1.24         “Process
Know-How” means all know-how provided by or on behalf of TXMD to QPharma and know-how to the extent it relates to the
processing, manufacture, quality control, formulation, filling, finishing, testing and packaging of a Product, whether in bulk
or final form, and regardless of container, including, without limitation, analytical tests methods for in-process and final Product,
copies of manufacturing records, formulation recipes, designs and drawings, and formulae, used in the Processing for a Product
to the extent it is in the possession, or under the control, of QPharma, its Affiliates and their respective subcontractors. For
the avoidance of doubt, such Process Know-How includes the Know-How TXMD obtained from The Population Council by operation of
TXMD’s acquisition of the Product’s New Drug Application under the License Agreement with The Population Council dated
August 1, 2018.


 


1.25         “Process
Know-How Transfer” means the commercially reasonable efforts of the parties undertaken pursuant to the Process Know-How
Transfer Plan to transfer copies of all Process Know-How (together with relevant books and records) and the “Standards”
(defined below) in QPharma’s possession or under its control, to TXMD as set forth in greater detail in the Process Know-How
Transfer Plan. As used herein “Standards” means data, information, or samples of validated or QPharma manufactured
or partially manufactured Product or other indicia measured at various points during Processing, to the extent QPharma possesses
such data, information, or samples.


 




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1.26         “Process
Know-How Transfer Plan” means that plan addressing orderly Process Know-How Transfer, to be prepared in writing and
reasonably agreed to by the parties within the sixty (60) day period following notice from TXMD to QPharma of its intention to
commence Process Know-How Transfer.


 


1.27         “Product”
means a silicon-based removable intra-vaginal ring system eluting segesterone acetate and ethinyl estradiol meeting the Specifications.


 


1.28         “Product
Maintenance Services” has the meaning set forth in Section 2.2.


 


1.29         “Purchase
Order” has the meaning set forth in Section 4.3.


 


1.30         “QPharma”
has the meaning set forth in the introductory paragraph, or any successor or permitted assign. QPharma shall have the right to
cause any of its Affiliates, upon prior written notice to and approval from TXMD, to perform any of its obligations hereunder,
and TXMD upon its prior approval of the use of such an Affiliate, shall accept such performance as if it were performance by QPharma,
but QPharma shall remain jointly and severally liable for the performance by any of its Affiliates under this Agreement.


 


1.31         “QPharma
Defective Processing” has the meaning set forth in Section 5.2.


 


1.32         “QPharma
Indemnitees” has the meaning set forth in Section 13.2.


 


1.33         “Qualified
Person (QP)” means a company employee that fulfils the requirements as described in European Directive 2001/83(2)/EC.
These requirements include personal qualities of integrity, maturity, open-mindedness, assertiveness, sound analytical skills
and judgment as well as a level of education, combined with practical work experience within pharmaceutical development, manufacture,
or Quality Assurance. The regulations specify that no batch of medicinal product can be released for sale or supply prior to certification
by a QP that the batch is in accordance with the relevant requirements.


 


1.34         “Quality
Agreement” has the meaning set forth in Section 9.7.


 


1.35         “Raw
Material(s)” means any and all raw materials, supplies, Components and packaging necessary to manufacture and ship Product
in accordance with the Specifications, but excluding the APIs and TXMD-supplied Materials, if any.


 


1.36         “Recall”
has the meaning set forth in Section 9.5.


 


1.37         “Recipient”
has the meaning set forth in Section 10.1.


 


1.38         “Regulatory
Approval” means any approvals, permits, product and/or establishment licenses, registrations or authorizations, including
approvals pursuant to U.S. Investigational New Drug Applications, New Drug Applications and Abbreviated New Drug Applications,
as applicable, of any Regulatory Authorities that are necessary or advisable in connection with the development, manufacture,
testing, use, storage, exportation, importation, transport, promotion, marketing, distribution or sale of APIs or Product in the
Territory.


 




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1.39         “Regulatory
Authority” means the international, federal, state or local governmental or regulatory bodies, agencies, departments,
bureaus, courts or other entities in the Territory that are responsible for (A) the regulation (including pricing) of any aspect
of pharmaceutical or medicinal products intended for human use including, but not limited to, their manufacture, handling and
storage, or (B) health, safety or environmental matters generally. In the United States, this includes the United States Food
and Drug Administration.


 


1.40         “Representatives”
of an entity mean such entity’s duly-authorized officers, directors, employees, agents, accountants, attorneys or other
professional advisors.


 


1.41         “Review
Period” has the meaning set forth in Section 5.2.


 


1.42         “Risk
Mitigation Plan” has the meaning set forth in Section 16.5(B).


 


1.43         “Specifications”
means the procedures, requirements, standards, quality control testing and other data and the scope of services as set forth in
Attachment A, as modified from time to time in accordance with Article 8.


 


1.44         “Term”
has the meaning set forth in Section 16.1.


 


1.45         “Term
Sheet” means that certain Binding Pricing Term Sheet for Supply of Product entered into on [***], between TherapeuticsMD
and QPharma.


 


1.46         “Territory”
means the United States of America, its territories, insular possessions and commonwealths.


 


1.47         “TXMD”
has the meaning set forth in the introductory paragraph, or any successor or permitted assign.


 


1.48         “TXMD
Equipment” means the equipment listed on Attachment B, together with all diagrams, schematics, operator’s
manuals, operating software and warranties.


 


1.49         “TXMD
Indemnitees” has the meaning set forth in Section 13.1.


 


1.50         “TXMD
IP” has the meaning set forth in the Development Agreement.


 


1.51         “TXMD-supplied
Materials” means materials to be supplied by or on behalf of TXMD to QPharma, other than APIs, for Processing, if any.


 


1.52         “Unit
Pricing” has the meaning set forth in Section 7.1(A).


 


1.53         “Validation
Plan” has the meaning set forth in Section 7.7.


 


1.54         “Vendor”
has the meaning set forth in Section 3.1(B).


 




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ARTICLE
2





PROCESSING
& RELATED SERVICES


 


2.1           Supply
and Purchase of Product. QPharma shall Process Product and deliver the same to TXMD, its Affiliates and licensees in accordance
with the Specifications, Applicable Laws and the terms and conditions of this Agreement.


 


2.2           Product
Maintenance Services. TXMD will receive the following product maintenance services (the “Product Maintenance Services”):
one annual audit (as further described in Section 9.5); regulatory audits (as further described in Section 9.4); one annual Product
review (within the meaning of 21 CFR § 211.180); access to document library over and above the Quality Agreement, including
additional copies of Batch paperwork or other Batch documentation; assistance in preparing Regulatory Approvals; Product document
and sample storage relating to cGMP requirements; vendor re-qualification; and maintenance, updates and storage of master batch
records and audit reports. For avoidance of doubt, the following services and items are not included in Product Maintenance Services:
technology transfer; analytical work; stability; and process rework.


 


2.3           Other
Related Services. QPharma shall provide such Product-related services, other than Processing or Product Maintenance Services,
as agreed to in writing by the parties from time to time. Such writing shall include the scope and fees for any such services
and be appended to this Agreement. The terms and conditions of this Agreement shall govern and apply to such services.


 


2.4           Validation
Services. QPharma operates a validated Process for the production of the Product, and will continue to do so.


 


ARTICLE
3





API,
MATERIALS & EQUIPMENT


 


3.1          The
APIs and Raw Materials.


 


A.            TXMD
shall be responsible for establishing a source of supply of the APIs. TXMD, at its option, shall enable QPharma to place orders
for the API’s from such source of supply. QPharma shall be responsible for inspecting and releasing adequate quantities
of the APIs and Raw Materials as necessary to meet the Firm Commitment, unless otherwise agreed to by the parties in writing.
QPharma shall not be liable for any delay in delivery of Product if (i) TXMD is unable to obtain, in a timely manner, a particular
API or (ii) QPharma is unable to obtain, in a timely manner, a particular API through its placement of orders therefor from TXMD’s
source of supply or Raw Material necessary for Processing and (iii) QPharma placed orders for such API or Raw Material promptly
following receipt of TXMD’s Firm Commitment. In the event that any API or Raw Material becomes subject to purchase lead
time beyond the Firm Commitment time frame, the parties will negotiate in good faith an appropriate amendment to this Agreement.
TXMD shall reimburse to QPharma its cost for the APIs. QPharma shall provide a credit to TXMD in the amount of any credit received
by QPharma from an API supplier resulting from a pricing agreement with such supplier, with such credits to be applied to the
next invoice issued thereafter to TXMD and successive invoices until fully expended. In order to facilitate the ordering and delivery
of initial supplies of APIs to QPharma, TXMD, in consultation with QPharma, may purchase supplies of APIs for delivery to QPharma.
Further, in order to facilitate the timely manufacture of Product for the Firm Commitment, QPharma shall maintain a safety stock
of APIs and Raw Materials. Such safety stock shall be in an amount mutually agreed to by the Parties. TXMD shall be responsible
for payment of the purchase price of any such APIs so ordered by it for delivery to QPharma.


 




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B.             In
certain instances, TXMD may require a specific supplier, manufacturer or vendor (“Vendor”) to be used for a
Raw Material. In such an event occurring after the date of this Agreement, such Vendor will be identified in the Specifications.
If the cost of such Raw Material from any such Vendor is greater than QPharma’s costs for the same Raw Material of equal
quality from other vendors, QPharma shall add the difference between QPharma’s cost of such Raw Material and the Vendor’s
cost of the Raw Material to the Unit Pricing. TXMD will be responsible for all costs associated with qualification of any Vendor
specifically required to be used upon written instruction from TXMD, which Vendor has not been previously qualified by QPharma.


 


C.             In
the event of (i) a Specification change for any reason, (ii) obsolescence of any API or Raw Material or (iii) termination or expiration
of this Agreement, TXMD shall bear the cost of any unused API or Raw Materials (including packaging), so long as QPharma purchased
such API and Raw Materials in quantities consistent with TXMD’s most recent Firm Commitment and the vendor’s minimum
purchase obligations. Such APIs and Raw Material shall be the property of TXMD upon payment therefor.


 


3.2          Supply
of Materials.


 


A.            TXMD
shall supply to QPharma for Processing, at TXMD’s cost, all TXMD-supplied Materials set forth on Attachment C, if
any, in quantities sufficient to meet TXMD’s requirements for Product. TXMD shall deliver such items and associated certificates
of analysis to the Facility no later than [***] ([***]) days before the Processing Date. TXMD’s failure to fulfill the foregoing
obligations in this Section 3.2 shall not by itself give rise to a cause of action in QPharma or a right by it to terminate this
Agreement. However, QPharma shall not be held liable for a delayed Processing Date related to TXMD’s own delay in delivering
TXMD supplied Materials and associated certificates to the Facility. TXMD shall be responsible at its expense for securing any
necessary DEA, export or import, similar clearances, permits or certifications required in respect of such supply. QPharma shall
use such items solely for Processing. Prior to delivery of any such items, TXMD shall provide to QPharma a copy of all associated
material safety data sheets, safe handling instructions and health and environmental information and any Regulatory certifications
or authorizations that may be required under Applicable Laws with respect thereto, and shall promptly provide any updates thereto.


 


B.             Following
receipt of TXMD-supplied Materials, QPharma shall inspect, test and release such items employing such measures as are set forth
in the Specifications. QPharma will receive, handle, store and use all TXMD-supplied Materials in compliance with all Applicable
Laws and labeled storage requirements, or lacking labeled storage requirement, the written instructions of TXMD, as agreed to
by QPharma, such agreement not to be unreasonably withheld. In the event that QPharma detects a nonconformity with Specifications,
QPharma shall give TXMD prompt notice of such nonconformity. QPharma shall not be liable for any defects in TXMD-supplied Materials,
or in Product resulting from defective TXMD-supplied Materials, unless QPharma failed to properly perform the foregoing obligations.
QPharma shall follow TXMD’s reasonable written instructions in respect of return or disposal of defective TXMD-supplied
Materials, at TXMD’s cost.


 




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C.             TXMD
shall retain title to TXMD-supplied Materials at all times and shall bear the risk of loss thereof, except for losses to the extent
due to the negligent acts or omissions of QPharma or QPharma’s failure to follow storage and handling requirements or mutually
agreed to written instructions of TXMD, in each case, subject to Article 14.


 


3.3          Artwork
and Labeling. TXMD shall provide or approve, prior to the procurement of applicable Raw Materials, all artwork, advertising
and labeling information necessary for Processing, if any. Such artwork, advertising and labeling information is and shall remain
the exclusive property of TXMD, and TXMD shall be solely responsible for the content thereof. Hence, TXMD will be responsible
for the artwork and labelling information communicated to QPharma for Processing and ensure itself that the latter comply with
provided text and relevant applicable laws and regulations prevailing in the Territory. Such artwork, advertising and labeling
information or any reproduction thereof may not be used by QPharma in any manner other than performing its obligations hereunder.


 


3.4          TXMD
Equipment. QPharma hereby acknowledges that the TXMD Equipment is the sole and exclusive property of TXMD, and is in the possession
of QPharma. During the Term, except as set forth below, QPharma shall be entitled to use the TXMD Equipment in the performance
of its obligations to TXMD pursuant to this Agreement. QPharma (i) shall mark the TXMD Equipment so as to identify it as the property
of TXMD, (ii) shall safeguard the TXMD Equipment with the same degree of care as it uses in connection with the safeguarding of
its own equipment and (iii) shall be responsible for the proper operation, maintenance and repair of the TXMD Equipment. QPharma
shall not sell, lease or lend the TXMD Equipment to any third party or relinquish possession or control of the TXMD Equipment.
QPharma shall not move the TXMD Equipment from its current location without the advance written consent of TXMD. QPharma shall
not grant a security interest in, use as collateral or otherwise encumber the TXMD Equipment in any way, or suffer the placement
of a lien or other security device upon the TXMD Equipment. Upon request of TXMD, whether at the expiration of the Term or prior
thereto, QPharma shall promptly make the TXMD Equipment ready for removal by TXMD or its designees, and shall grant access to
TXMD and its designees to QPharma facilities for the purpose of such removal. During the Term, in the event, and to the extent,
there exists capacity in the use of the TXMD Equipment in excess of its use to fulfill purchase orders of TXMD, QPharma may use
the TXMD Equipment for its intended purpose in the performance of its manufacturing obligations for The Population Council, Inc.
or its designee.


 


3.5          Additional
Manufacturing Line. In order to plan for and meet potential demand for the Product in excess of QPharma’s current capacity,
the Parties will prepare and reasonably agree to a manufacturing capacity expansion plan within ninety (90) days of the date of
this Agreement, such plan to address the actions to be taken, the equipment to be purchased and installed, and financial responsibility
therefor, along with a timeline, headcount plan, budget and assignment of responsibilities in the implementation of a second manufacturing
line and other capacity improvements, all as set forth in such plan. For the avoidance of doubt, the Additional Manufacturing
Line will also be comprised of TXMD Equipment.


 




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ARTICLE
4


PURCHASE
ORDERS & RELATED MATTERS


 


4.1          Purchase
Order Requirement. No purchase order shall be submitted for less than [***] commercial validated [***]. Purchase orders reflecting
purchases in excess of [***] shall be submitted only in [***] Batch multiples.


 


4.2          Guidance.
TXMD shall keep QPharma generally informed of its anticipated need for Product, including anticipated launch quantities, through
delivery of a summary report every [***] ([***]) months. The parties shall cooperate in an effort to provide for an orderly process
of purchase order submissions and deliveries of Product.


 


4.3          Purchase
Orders.


 


A.            As
provided in this Section 4.3(A), TXMD shall submit to QPharma a binding, non-cancelable purchase order for Product specifying
the number of Batches to be Processed, the Batch size (to the extent the Specifications permit Batches of different sizes) and
the requested delivery date for each Batch (“Purchase Order”).


 


B.             Promptly
following receipt of a Purchase Order, QPharma shall issue a written acknowledgement (“Acknowledgement”) that
it accepts or rejects such Purchase Order. Each acceptance Acknowledgement shall either confirm the delivery date set forth in
the Purchase Order or set forth a reasonable alternative delivery date, and shall include the Processing Date. QPharma may reject
any Purchase Order not given in accordance with this Agreement; provided, however, QPharma shall accept any Purchase Order that
meets the requirements of this Agreement.


 


C.             In
the event of a conflict between the terms of any Purchase Order or Acknowledgement and this Agreement, the terms of this Agreement
shall control. No Purchase Order, confirmation, shipping document, receipt or similar document shall amend any term set forth
in this Agreement or set forth any term inconsistent with the terms and conditions contained in this Agreement.


 


4.4          QPharma’s
Cancellation of Purchase Orders. Notwithstanding Section 4.5, QPharma reserves the right to cancel all, or any part of, a
Purchase Order upon written notice to TXMD, and QPharma shall have no further obligations or liability with respect to such Purchase
Order, if TXMD refuses or fails to timely supply conforming TXMD-supplied Materials in accordance with Section 3.2. Any such cancellation
of Purchase Orders shall not constitute a breach of this Agreement by QPharma. QPharma shall use reasonable efforts to re-schedule
Processing reflected on such Purchase Order promptly after conforming TXMD-supplied Materials are delivered to QPharma.


 




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4.5           TXMD’s
Modification or Cancellation of Purchase Orders. TXMD may modify the delivery date or quantity of Product in a Purchase Order
only by submitting a written change order to QPharma at least [***] ([***]) days in advance of the earliest Processing Date covered
by such change order. Such change order shall be effective and binding against QPharma only upon the written approval of QPharma.
QPharma shall endeavor in good faith to mitigate the costs of such change order, but TXMD shall be responsible to QPharma for
unavoidable costs, including those resulting from non-cancellable contracts entered into by QPharma in good faith.


 


4.6           Unplanned
Delay or Elimination of Processing. QPharma shall use commercially reasonable efforts to meet the Purchase Orders, subject
to the terms and conditions of this Agreement. QPharma shall provide TXMD with as much advance notice as practicable if QPharma
determines that any Processing will be delayed or eliminated for any reason.


 


4.7           Observation
of Processing. In addition to TXMD’s audit right pursuant to Section 9.5, TXMD may send up to [***] ([***]) Representatives
to the Facility to observe Processing. Provided that QPharma has given TXMD adequate notice of commencement of Processing, TXMD
shall give QPharma written notice of its intention to observe processing at least [***] ([***]) days prior to the date of its
visit. The foregoing limitations shall not apply to time spent by TXMD Representatives on site at the Facility to participate
in or witness research and development activities or to witness Processing of validation Batches of Product. Such Representatives
shall abide by all QPharma safety rules and other applicable employee policies and procedures, and TXMD shall be responsible for
such compliance. TXMD shall indemnify and hold harmless QPharma for any action, omission or other activity of such Representatives
while on QPharma’s premises. TXMD’s Representatives who are not employees of TXMD shall be required to sign QPharma’s
standard visitor confidentiality agreement prior to being allowed access to the Facility. QPharma shall not be required to accommodate
any observation request or activity that would violate GMP or Swedish law. TXMD acknowledges that space constraints at QPharma’s
facilities also may limit its ability to observe.


 


ARTICLE
5





TESTING;
RELEASE


 


5.1           Batch
Release. After QPharma completes Processing of a Batch, QPharma shall also provide TXMD or its designee with QPharma’s
certificate of analysis, certificate of compliance and Qualified Person release for such Batch. Issuance of a certificate of analysis,
executed batch records and a certificate of compliance by QPharma constitutes release of the Batch by QPharma to TXMD. TXMD shall
be responsible for final release of Product to the market.


 


5.2           Testing;
Rejection. No later than [***] days after receipt of the Batch (“Review Period”), TXMD or its designee
shall notify QPharma whether the Batch conforms to Specifications. Upon receipt of notice from TXMD that a Batch meets Specifications,
or upon failure of TXMD to respond by the end of the Review Period, the Batch shall be deemed accepted by TXMD and TXMD shall
have no right to reject such Batch other than for defects which existed at the time of delivery and were not discovered or discoverable
in the exercise of reasonable care (“Latent Defects”). For the avoidance of doubt, (i) Batches failing to meet
Specifications at the time of delivery due to Latent Defects may be rejected, if at all, only upon notice to QPharma within [***]
([***]) days following the date on which such Latent Defect was discovered or should have been discovered in the exercise of reasonable
care and (ii) in no event may TXMD reject Product after such Product’s expiration date. If TXMD or its designee timely notifies
QPharma in writing (an “Exception Notice”) that a Batch does not conform to the Specifications or otherwise
does not meet the warranty set forth in Section 12.1(A), whether due to a Latent Defect or otherwise (“Defective Product”),
and provides a sample of the alleged Defective Product, QPharma shall conduct an appropriate investigation in its discretion to
determine whether or not it agrees with TXMD that Product is Defective Product and to determine the cause of any nonconformity.
If QPharma agrees that Product is Defective Product and determines that the cause of nonconformity is attributable to QPharma’s
failure to perform the Processing in accordance with the Specifications (“QPharma Defective Processing”), then
Section 5.4 shall apply. For avoidance of doubt, where the cause of nonconformity cannot be determined or assigned, it shall be
deemed not QPharma Defective Processing. For the avoidance of doubt, the Processing of any Batch that does not proceed to completion
or any Batch that does not pass release testing by QPharma shall be treated as Defective Product resulting from QPharma Defective
Processing. In such case, the remedies set forth in Section 5.4 shall apply.


 




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5.3           Discrepant
Results. If the parties disagree as to whether Product is Defective Product and/or whether the cause of the nonconformity
is QPharma Defective Processing, and this is not resolved within [***] days of the Exception Notice date, the parties shall cause
a mutually acceptable independent third party to review records, test data and to perform comparative tests and/or analyses on
samples of the alleged Defective Product and its components, including TXMD-supplied Materials. The independent party’s
results as to whether or not Product is Defective Product and the cause of any nonconformity shall be final and binding. Unless
otherwise agreed to by the parties in writing, the costs associated with such testing and review shall be borne by QPharma if
Product is Defective Product attributable to QPharma Defective Processing, and by TXMD in all other circumstances. TXMD will be
apprised in writing of all Defective Product investigations executed by QPharma on TXMD’s materials/products, including
Product and TXMD-supplied Materials, as well as final investigation outcome and conclusion(s).


 


5.4           Defective
Processing. QPharma shall, at TXMD’s option, either (A) replace at its cost another Batch of Product (as a replacement
for any Batch of Defective Product attributable to QPharma Defective Processing) using TXMD-supplied Materials provided at QPharma’s
cost, if any such items are required or (B) credit any payments made by TXMD for such Batch. THE OBLIGATION OF QPHARMA TO REPLACE
QPHARMA DEFECTIVE PROCESSING IN ACCORDANCE WITH THE SPECIFICATIONS OR CREDIT PAYMENTS MADE BY TXMD FOR DEFECTIVE PRODUCT ATTRIBUTABLE
TO QPHARMA DEFECTIVE PROCESSING SHALL BE TXMD’S SOLE AND EXCLUSIVE REMEDY UNDER THIS AGREEMENT FOR DEFECTIVE PRODUCT (APART
FROM RECALL COSTS SET FORTH IN SECTION 9.6, AND IS IN LIEU OF ANY OTHER WARRANTY, EXPRESS OR IMPLIED).


 


ARTICLE
6





DELIVERY


 


6.1           Delivery.
QPharma shall deliver Product ExWorks (Incoterms 2010) at the Facility promptly following TXMD’s approval and notification
to QPharma’s to release the Product; provided, however, QPharma shall be responsible for loading the Product on the carrier’s
vehicle using due care. QPharma shall segregate and store all Product until tender of delivery. Title to Product shall transfer
to TXMD upon such delivery. TXMD shall qualify at least [***] ([***]) carriers to ship Product and then designate the priority
of such qualified carriers to QPharma.


 




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6.2          Storage.
Any items temporarily stored at QPharma shall be stored in compliance with requirements set forth in the Specification, or if
no such storage Specification exists for such item, QPharma shall store such items using due care taking into account the identity
of such item.


 


6.3          Subcontracting.
QPharma may utilize third parties to provide any part of the Processing only with the prior written approval of TXMD, provided
that the foregoing will not apply to generally available goods and services or to subcontracting to QPharma Affiliates. If TXMD
approves a subcontractor, then QPharma shall enter a written agreement with such subcontractor that enables QPharma to comply
with its obligations under this Agreement and places such subcontractors under obligations of confidentiality, non-use and intellectual
property ownership no less burdensome than those set forth herein and applicable to QPharma. QPharma will oversee all services
performed by any subcontractor, and will be responsible for such services as if such services were performed by QPharma. QPharma
shall remain liable for the performance of its subcontractors under this Agreement. The use of subcontractors shall not relieve
QPharma of any responsibility under this Agreement.


 


ARTICLE
7





PAYMENTS


 


7.1          Fees.
In consideration for QPharma performing services hereunder:


 


A.            TXMD
shall pay QPharma the unit pricing for Product set forth on Attachment D (“Unit Pricing”), which shall be in
effect for the period ending on (i) the third anniversary of delivery by QPharma of the first commercial Batch of Product to or
for TXMD; provided launch occurs on or before [***], or (ii) [***], if there is no such launch on or before [***] (the “Initial
Pricing Term”). QPharma shall sell and deliver Product in final dosage form, packaged for end user use. QPharma shall
submit an invoice to TXMD for such fees upon tender of delivery of Product as provided in Section 6.1.


 


B.             Other
Fees. TXMD shall pay QPharma for all other fees and expenses of QPharma owing in accordance with the terms of this Agreement,
including pursuant to Sections 2.3 and 4.1. QPharma shall submit an invoice to TXMD for such fees as and when appropriate.


 


7.2          Unit
Pricing Increase. After the Initial Pricing Period, the Unit Pricing may be adjusted on an annual basis, effective on each
July 1st (with the first possible price adjustment to be effective on July 1, 2021), upon [***] days’ prior written notice
from QPharma to TXMD, to reflect increases in labor, utilities and overhead and shall be in an amount equal to the change in the
Producer Price Index (the “Index”), “Pharmaceutical Preparation Manufacturing” (Series ID: PCU325412325412),
not seasonally adjusted, as published by the U.S. Department of Labor, Bureau of Labor Statistics. The initial base period for
comparison shall be the twelve (12) month period ending on June 30 immediately preceding the expiration of the Initial Pricing
Period. For the avoidance of doubt, if launch of the Product occurs on or after [***], but before [***], QPharma shall be entitled
to adjust Unit Pricing for the Initial Pricing Period based upon the difference in the Index on [***] and on [***], but not to
exceed [***] percent ([***]%). For the further avoidance of doubt, Unit Pricing Increases after the Initial Pricing Period shall
not exceed [***] percent ([***]%) in the aggregate for the Index. In addition, price increases (or decreases) for APIs and Raw
Materials shall be passed through at cost to TXMD and not included in the Index-based price adjustment described above.


 




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7.3           Payment
Terms. All QPharma invoices shall be due [***] ([***]) days after the date of receipt of invoice. No invoice shall be issued
to TXMD for Processing until the Batch so Processed has been released pursuant to Section 5.1; provided, however, with respect
to purchase orders for the initial [***] ([***]) Batches ordered by TXMD pursuant to this Agreement (the “Initial Batches”),
QPharma shall be entitled to issue invoices to TXMD upon receipt of such purchase orders in a non-refundable pre-paid amount equal
to [***] percent ([***]%) of the price of each such purchase order. Purchase orders for the Initial Batches shall be placed only
for even numbers of Batches to be Processed. Under a given purchase order covering some or all of the Initial Batches, TXMD shall
pay for all Batches released pursuant to Section 5.1, but shall first receive a credit in the amount of the pre-payment made pursuant
to such purchase order. If more than [***] percent ([***]%) the Batches Processed pursuant to a given purchase order for the Initial
Batches fail release pursuant to Section 5.1, QPharma nevertheless shall be entitled to retain the pre-payment made in respect
of such purchase order. TXMD shall make payment in U.S. dollars, and otherwise as directed in the applicable invoice. If any payment
is not received by QPharma by its due date, then QPharma may, in addition to any other remedies available at equity or in law,
charge interest on the outstanding sum from the due date (both before and after any judgment) at [***]% per month until paid in
full (or, if less, the maximum amount permitted by Applicable Laws).


 


7.4           Advance
Payment. Notwithstanding any other provision of this Agreement, if at any time TXMD is in arrears in paying amounts due under
this Agreement, QPharma may require payment in advance before performing any further services or making any further shipment of
Product. If TXMD shall fail, within a reasonable time, to make such payment in advance, or if TXMD shall fail to make any payment
when due, QPharma shall have the right, at its option, to suspend any further performance hereunder until such default is corrected,
without thereby releasing TXMD from its obligations under this Agreement.


 


7.5           Taxes.
All taxes, duties and other amounts assessed (excluding tax based on net income and franchise taxes) on TXMD-supplied Materials,
services or Product prior to or upon provision or sale to QPharma or TXMD, as the case may be, are the responsibility of TXMD,
and TXMD shall reimburse QPharma for all such taxes, duties or other expenses paid by QPharma or such sums will be added to invoices
directed at TXMD, where applicable.


 


7.6           TXMD
and Third Party Expenses. Except as may be expressly covered by Product Maintenance Service fees, TXMD shall be responsible
for 100% of its own and all third-party expenses associated with the development, Regulatory Approvals and commercialization of
Product, including regulatory filings and post-approval marketing studies. The preceding sentence shall not be construed in derogation
of QPharma’s obligations pursuant to Section 9.2 herein.


 




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7.7           Capital
Equipment; Process Development and Validation. QPharma shall develop and implement a plan for the acquisition and installation
of certain required capital equipment, and for the validation of the manufacturing process for the Product at the facilities where
it is to be Processed, pursuant to a written plan to be agreed to by the Parties within sixty (60) days following the Effective
Date (the “Validation Plan”). The Validation Plan shall set forth the obligations of QPharma with regard to
equipment procurement and installation, process and facility validation activities, and the headcount, the budget (on a not-to-exceed
basis) and the timeline for the accomplishment of such activities. Validation costs and expenses, including stability testing,
will not exceed $[***]. Capital equipment procurement and installation costs and expenses will not exceed $[***]. The elements
of the foregoing costs and expenses shall be set forth in the Validation Plan.


 


7.8           Manufacturing
and Cost Improvement. Promptly following execution and delivery of this Agreement, the parties shall confer, as advisable,
to formulate and put in place a plan for continuous improvement in manufacturing after considering appropriate means by which
to increase efficiency, yield and process improvement with a view toward lowing the Unit Pricing for Product.


 


ARTICLE
8





CHANGES
TO SPECIFICATIONS


 


8.1           All
Specifications and any changes thereto agreed to by the parties from time to time shall be in writing, dated and signed by the
parties. No change in the Specifications shall be implemented by QPharma, whether requested by TXMD or requested or required by
any Regulatory Authority, until the parties have agreed in writing to such change, the implementation date of such change, and
any increase or decrease in costs, expenses or fees associated with such change (including any change to Unit Pricing). QPharma
shall respond promptly to any request made by TXMD for a change in the Specifications, and both parties shall use commercially
reasonable, good faith efforts to agree to the terms of such change in a timely manner. As soon as possible after a request is
made for any change in Specifications, QPharma shall notify TXMD of the costs associated with such change and shall provide such
supporting documentation as TXMD may reasonably require. TXMD shall pay all costs associated with such agreed upon changes. If
there is a conflict between the terms of this Agreement and the terms of the Specifications, this Agreement shall control. QPharma
reserves the right to postpone effecting changes to the Specifications until such time as the parties agree to and execute the
required written amendment.


 


ARTICLE
9





RECORDS;
REGULATORY MATTERS


 


9.1           Recordkeeping.
QPharma shall maintain complete and accurate Batch, laboratory data, reports and other technical records relating to Processing
in accordance with QPharma standard operating procedures. Such information shall be maintained for a period of at least [***]
([***]) years from the relevant finished Product expiration date or longer if required under Applicable Laws or the Quality Agreement.
QPharma will retain samples required by cGMP and such samples shall be stored at the Facility pursuant to QPharma’s standard
operating procedures. Prior to the destruction of any such Product specific items, QPharma shall notify TXMD of the impending
destruction and provide TXMD a reasonable opportunity to receive any or all such items.


 




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9.2          Regulatory
Compliance. QPharma shall obtain and maintain, at its cost and expense, all permits and licenses with respect to general Facility
operations required by any Regulatory Authority in the jurisdiction where QPharma Processes Product and by any Regulatory Authority
in the Territory. QPharma acknowledges that the Product is a hormonal product and as such is subject to specialized regulations
relating to its manufacture. QPharma’s Facility presently complies with such regulations and QPharma shall maintain the
Facility’s compliance with such regulations. TXMD shall obtain and maintain, at its cost and expense, all other Regulatory
Approvals, authorizations and certificates, including those necessary for QPharma to commence Processing for the Territory. Upon
reasonable written request, TXMD shall provide QPharma with a copy of applicable Regulatory Approvals required to distribute,
market and sell Product in the Territory. If TXMD is unable to provide such information, QPharma shall have no obligation to deliver
Product to TXMD, notwithstanding anything to the contrary in this Agreement. During the Term, QPharma will assist TXMD with all
regulatory matters relating to Processing and review the Common Technical Document pertaining to the Product and make such corrections
as are necessary to accurately reflect the Product, in each case at TXMD’s request and reasonable expense; provided, however,
QPharma shall review and correct such documents as they relate to QPharma activities at no charge to TXMD. The parties intend
and commit to cooperate to allow each party to satisfy its obligations under Applicable Laws relating to Processing under this
Agreement.


 


9.3          Regulatory
Communications.


 


A.             Each
party may communicate with any governmental agency, including, but not limited to, governmental agencies responsible for granting
regulatory approval for the Products, regarding such Products if in the opinion of that party’s counsel, such communication
is necessary to comply with the terms of this Agreement or the requirements of any Applicable Law; provided, however, that unless
in the reasonable opinion of its counsel there is a legal prohibition against doing so, such party will permit the other party
to review and take part in any communications with the applicable agency, and to receive copies of all such communications from
that agency.


 


B.             QPharma
will notify TXMD promptly if QPharma receives any warning letters from or on behalf of a governmental agency directly related
to the Product or systems utilized in Processing the Product including, without limitation, any Form FDA-483. QPharma will provide
TXMD copies of any written communication from a governmental agency relating to a TXMD Product within [***] ([***]) Swedish business
days of its receipt.


 


C.             QPharma
will promptly notify TXMD upon receipt of a notice from a Regulatory Authority for an inspection of any Facility where the Processing
is being performed due to an issue related to the Product or a system used in the performance of such services, or, in the event
of an unannounced inspection, QPharma will provide such prior notice as is possible and permissible. If not prohibited by the
Regulatory Authority, TXMD will have the right to be present at the Facility and participate in and any wrap-up meeting with such
Regulatory Authority as it applies to the Product. If QPharma receives any request by a Regulatory Authority with respect to the
Product, including, but not limited to, a notice of deficiency or FDA-483 that requires a written response regarding TXMD-supplied
Materials, project, or protocol, QPharma will provide a copy to TXMD of the deficiency notice within [***] ([***]) [***] of QPharma’s
receipt of the notice. QPharma will provide TXMD a draft of the response prior to the response being submitted to the Regulatory
Authority so as to provide TXMD with reasonable time to review and comment on the response, which comments QPharma, in good faith,
will consider incorporating into the response.


 




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9.4           Governmental
Inspections and Requests. QPharma shall promptly advise TXMD if an authorized agent of any Regulatory Authority notifies QPharma
that it intends to or does visit a Facility or any other site for the purpose of reviewing the Processing or testing. Upon request,
QPharma shall provide TXMD with a copy of any report issued by such Regulatory Authority received by QPharma following such visit,
redacted as appropriate to protect any confidential information of QPharma and QPharma’s other customers. TXMD acknowledges
that it may not direct the manner in which QPharma fulfills its obligations to permit inspection by and to communicate with Regulatory
Authorities, but such acknowledgement shall not be construed to vitiate QPharma’s obligations to TXMD pursuant to this Agreement.
TXMD will not be required to pay costs to mitigate any deficiencies cited in a Form 483 or QPharma’s Facility deficiencies.


 


9.5           TXMD
Facility Audits. During the Term, TXMD’s Representatives shall be granted access upon at least [***] ([***]) business
days’ prior notice, at reasonable times during regular business hours, to (A) the portion of the Facility where QPharma
performs Processing, (B) relevant personnel involved in Processing and (C) Processing records described in Section 9.2, in each
case solely for the purpose of verifying that QPharma is Processing in accordance with cGMPs, Applicable Laws, the Specifications
and the Product master Batch records. TXMD may not conduct an audit under this Section more than once during any [***]-month period;
provided, that additional unlimited inspections may be conducted by or on behalf of TXMD as deemed appropriate by TXMD in the
event there is a material quality or compliance issue concerning Product or its Processing or to measure remediation following
an audit by either TXMD or a Regulatory Authority that resulted in a finding of deficiency. TXMD’s Quality Assurance Manager
will arrange TXMD audits with QPharma Quality Management. Audits shall be designed to minimize disruption of operations at the
Facility. TXMD’s Representatives who are not employees of TXMD shall be required to sign QPharma’s standard visitor
confidentiality agreement prior to being allowed access to the Facility. Such Representatives shall comply with the Facility’s
rules and regulations which are made known in advance to TXMD. TXMD shall indemnify and hold harmless QPharma for any action or
activity of such Representatives while on QPharma’s premises. QPharma shall not be required to accommodate any activity
that would violate GMP or Swedish law.


 


9.6           Recall.
If a Regulatory Authority orders or requires the recall of any Product supplied hereunder or if either QPharma or TXMD believes
a recall, field alert, Product withdrawal or field correction (“Recall”) may be necessary with respect to any
Product supplied under this Agreement, the party receiving the notice from the Regulatory Authority or that holds such belief
shall promptly notify the other party in writing. With respect to any Recall, QPharma shall provide all necessary cooperation
and assistance to TXMD. TXMD shall provide QPharma with an advance copy of any proposed submission to a Regulatory Authority in
respect of any Recall, and shall consider in good faith any comments from QPharma. The cost of any Recall shall be borne by TXMD,
and TXMD shall reimburse QPharma for expenses incurred in connection with any Recall, in each case except to the extent such Recall
is caused by QPharma’s breach of its Processing obligations under this Agreement or QPharma’s violation of Applicable
Laws, then such cost shall be borne by QPharma in proportion to QPharma’s contribution to the cause of the Recall, limited
to an amount equal to the aggregate price for all Product subject to Recall plus the price for all Product sold to TXMD during
the [***] ([***]) [***] period prior to Recall. For purposes hereof, such QPharma cost shall be limited to reasonable, actual
and documented administrative costs incurred by TXMD for such Recall and if applicable, replacement of the Product subject to
Recall both in accordance with Article 5.


 




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9.7           Quality
Agreement. The parties shall negotiate in good faith and enter into a quality agreement on QPharma’s standard template
or such other template agreed to by the parties (the “Quality Agreement”). If the parties have not entered
into a Quality Agreement by the first to occur of (i) [***] ([***]) days following the date execution by the last party signing
this Agreement or (ii) commencement of manufacturing of Product for human use, TXMD shall be entitled to terminate this Agreement
on [***] ([***]) days’ written notice to QPharma, without cost or expense; provided, however, TXMD shall reimburse QPharma
for any (i) equipment acquired by QPharma upon written authorization of TXMD and (ii) Raw Materials procured upon written authorization
by TXMD, which unused Raw Materials, at the election of TXMD, and such equipment shall become the property of TXMD upon payment
pursuant to this Section. The Quality Agreement shall in no way determine liability or financial responsibility of the parties
for the responsibilities set forth therein. In the event of a conflict between any of the provisions of this Agreement and the
Quality Agreement with respect to quality-related activities, including compliance with cGMP, the provisions of the Quality Agreement
shall govern. In the event of a conflict between any of the provisions of this Agreement and the Quality Agreement with respect
to any commercial matters, including allocation of risk, liability and financial responsibility, the provisions of this Agreement
shall govern.


 


9.8           Audit
of Suppliers. QPharma shall be responsible for the audit of suppliers in accordance with its standard auditing plans and practices.
TXMD hereby agrees to conduct audits on behalf of QPharma of suppliers with locations in the United States, currently only [***],
and of certain contract laboratories to be agreed to by QPharma and TXMD. QPharma will reimburse to TXMD its out-of-pocket costs
in conducting such audits. TXMD is responsible for API audits. QPharma can audit other relevant suppliers, including [***] and
[***].


 


ARTICLE
10





CONFIDENTIALITY
AND NON-USE


 


10.1         Definition.
As used in this Agreement, the term “Confidential Information” includes all information furnished by or on
behalf of QPharma or TXMD, their respective Affiliates or any of its or their respective Representatives (the “Discloser”),
to the other party (the “Recipient”), its Affiliates or any of its or their respective Representatives, whether
furnished before, on or after the date of this Agreement, and furnished in any form, including written, verbal, visual, electronic
or in any other media or manner and information acquired by observation or otherwise during any site visit at the other party’s
facility. Confidential Information includes all proprietary technologies, know-how, trade secrets, discoveries, inventions and
any other intellectual property (whether or not patented), analyses, data, regulatory submission Information, compilations, business
or technical information, strategies, or plan, samples, and other materials prepared or possessed by either party, their respective
Affiliates, or any of its or their respective Representatives, containing or based in whole or in part on any information furnished
by the Discloser, its Affiliates or any of its or their respective Representatives. Confidential Information also includes the
existence of this Agreement and its terms. The manufacturing process parameters which are being provided to QPharma from TXMD,
the Specifications and data resulting from performance of this Agreement by QPharma shall be considered TXMD’s Confidential
Information. Items and information for which ownership has been allocated to TXMD under the Development Agreement shall be deemed
to be the Confidential Information of TXMD under this Agreement.


 




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10.2         Exclusions.
Notwithstanding Section 10.1, Confidential Information does not include information that (A) is or becomes generally available
to the public or within the industry to which such information relates other than as a result of a breach of this Agreement, (B)
is already known by the Recipient at the time of disclosure as evidenced by the Recipient’s written records created in the
ordinary course of business, (C) becomes available to the Recipient on a non-confidential basis from a source that is entitled
to disclose it on a non-confidential basis or (D) was or is independently developed by or for the Recipient without reference
to the Confidential Information of the Discloser as evidenced by the Recipient’s contemporaneously created written records
(E) is required to be disclosed by a court or judicial or governmental authority of competent jurisdiction, and in such event,
only after the party required to disclose the other party’s Confidential Information provides prompt written notice to that
party so as to enable that party to resist any such required disclosure and/or to obtain suitable protection regarding such required
disclosure as is described in provision 10.4 below


 


10.3         Mutual
Obligation. The Recipient agrees that it will not use the Discloser’s Confidential Information except in connection
with the performance of its obligations or the exercise of its rights under this Agreement, and will not disclose, without the
prior written consent of the Discloser, Confidential Information of the Discloser to any third party, except that the Recipient
may disclose the Discloser’s Confidential Information to any of its Affiliates and its or their respective Representatives
and subcontractors for which consent has been given pursuant to Section 6.3 and who have obligations of confidentiality and non-use
at least as rigorous as those terms herein, in each case, that (A) need to know such Confidential Information for the purpose
of performing under this Agreement, (B) are advised of the contents of this Article and (C) are bound to the Recipient by obligations
of confidentiality at least as restrictive as the terms of this Article. Each party shall be responsible for any breach of this
Article by its Affiliates or any of its or their respective Representatives or any person receiving Confidential Information directly
or indirectly from or through the Recipient. The Recipient also may disclose any information to The Population Council, as may
be required by any written contract now in existence.


 


10.4         Permitted
Disclosure. The Recipient may disclose the Discloser’s Confidential Information to the extent required by law or regulation;
provided, that prior to making any such legally required disclosure, the Recipient shall give the Discloser as much prior
notice of the requirement for and contents of such disclosure as is practicable under the circumstances. Any such disclosure,
however, shall not relieve the Recipient of its obligations contained herein.


 


10.5         No
Implied License. Except as expressly set forth in Section 10.1, the Recipient will obtain no right of any kind or license
under any Confidential Information of the Discloser, including any patent application or patent, by reason of this Agreement.
All Confidential Information will remain the sole property of the Discloser, subject to Article 11.


 


10.6         Return
of Confidential Information. Upon expiration or termination of this Agreement, the Recipient will (and will cause its Affiliates
and its and their respective Representatives to) cease its use and, upon written request, within thirty (30) days either return
or destroy (and certify as to such destruction) all Confidential Information of the Discloser, including any copies thereof, except
for a single copy which may be retained for the sole purpose of ensuring compliance with its continuing obligations under this
Agreement.


 




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10.7        Survival.
The obligations of this Article will terminate with respect to items of Confidential Information upon the entry thereof into general
knowledge in the public domain, other than due to breach of this Agreement by the Recipient thereof or by a person receiving such
Confidential Information from or through the Recipient, but in no event earlier than [***] ([***]) years from the expiration or
earlier termination of this Agreement.

 

10.8        Reverse
Engineering. Unless otherwise consented to by the Discloser in writing or provided for in a separate agreement between the
parties, the Recipient will not analyze for chemical composition any samples or materials that are the Confidential Information
of Discloser, nor to allow or cause any such samples or materials that are the Confidential Information of Discloser to be released
to third parties for analysis; provided, however, (i) this Section 10.8 shall not be construed to prevent TXMD from testing Product
or items related to Product itself or through third parties, as it sees fit in its sole and absolute discretion; and (ii) this
Section 10.8 shall not be construed to prevent QPharma from analyzing for chemical composition samples or materials that are commercially
available.

 

ARTICLE
11
INTELLECTUAL PROPERTY

 

11.1        The
parties hereby acknowledge that it is neither their intention nor the purpose of this Agreement to engage in inventive steps in
the conception, reduction to practice or development of intellectual property. Nevertheless, in the event, and to the extent,
that intellectual property is conceived, reduced to practice, developed or otherwise created by or on behalf of either or both
of the parties in connection with this Agreement, the ownership of such intellectual property, as between the parties, shall be
with TXMD with respect to such intellectual property that relates to the Product and its Processing. Otherwise ownership shall
be with QPharma.

 

11.2        Transfer.
Following notice given by TXMD to QPharma, QPharma will provide reasonable assistance to effect the timely and orderly transfer
of the Process Know-How, and pertinent books and records (or copies thereof, as the case may be) pursuant to the Process Know-How
Transfer Plan to TXMD pursuant to this Section 11.2 and the Process Know-How Transfer Plan whether to establish a second source
during the term of this Agreement or at or about the time of termination or expiration of this Agreement. QPharma shall only be
obligated to use its commercially reasonable efforts in the implementation of the Process Know-How Transfer Plan. QPharma will
be reimbursed at a reasonable rate for the time of its personnel for such technology transfer.

 

11.3         Books
and Records. Where any document, or books and records contain Process Know-How together with other information of QPharma,
its Affiliates or their respective subcontractors, or other QPharma customers, QPharma shall only be required to provide to TXMD
a copy of that portion of that document or books and records that discloses the Process Know-How that pertains to the Product.
When transferred to TXMD, such copies will be the property of TXMD. QPharma may retain the original books and records and any
documents required by Applicable Laws to be retained by QPharma, which disclose the Process Know-How. After completion of performance
of the Process Know-How Transfer Plan, before destroying any documents, or books and records which contain material disclosures
of Process Know-How that have not been previously been provided to TXMD (whether in the same form or some other form), QPharma
will notify TXMD of such intended destruction and provide TXMD with [***] ([***]) days to notify QPharma in writing whether TXMD
wishes to obtain the same to the extent it is entitled to under this Agreement, in which case QPharma will deliver the requested
document or books and records (or copies of all or a portion thereof, as the case may be) to TXMD at TXMD’s sole cost and
expense.

 


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11.4       TXMD
Marks. QPharma will not use TXMD’s Marks without prior written authorization from TXMD. The Marks are, and will remain,
TXMD’s sole and exclusive property, and QPharma has not acquired, and will not acquire (by operation of law, this Agreement,
or otherwise), any right, title, or interest in any of TXMD’s Marks other than as explicitly provided in writing by TXMD.
Any and all goodwill and rights that arise under trademark and copyright law, and all other intellectual property rights that
arise in favor of TXMD’s Marks as a result of this Agreement or otherwise, will inure to the sole and exclusive benefit
of TXMD. Subject to the next sentence, during the Term of this Agreement, QPharma will not attack, dispute, or challenge TXMD’s
right, title, and interest in and to TXMD’s Marks or assist others in so doing. QPharma reserves the right to attack, dispute,
or challenge TXMD’s right, title, and interest in and/or to TXMD’s Marks or assist others in so doing, if QPharma
believes in good faith that TXMD’s Mark infringes a Mark owned by or licensed to QPharma or one of its Affiliates. 

 

ARTICLE
12
REPRESENTATIONS AND WARRANTIES AND COMPLIANCE

 

12.1       QPharma. QPharma represents, warrants and undertakes to TXMD that:

 

A.      at
the time of delivery by QPharma as provided in Section 6.1, Product shall have been Processed in accordance with this Agreement
and with Applicable Laws and in conformance with the Specifications and shall not be adulterated, misbranded or mislabeled within
the meaning of Applicable Laws; provided, that QPharma shall not be liable for defects attributable to TXMD-supplied Materials
(including artwork, advertising and labeling); 

 

B.      all
personnel, employees, and agents of QPharma and its Affiliates and their respective subcontractors who perform services, are and
will continue to be qualified and to have sufficient technical expertise to perform QPharma’s obligations under this Agreement;

 

C.      QPharma
has the full power and authority to execute and deliver this Agreement and perform its covenants, duties, and obligations described
in this Agreement, and once executed, this Agreement will be a valid, legal, and binding obligation upon QPharma;

 

D.      QPharma
is not now, nor will it be, a party to any agreement, whether with The Population Council or others, which would prevent QPharma
from fulfilling its obligations under this Agreement, and that during the Term of this Agreement will not enter into any agreement
with any other party that would in any way prevent QPharma from performing its obligations under this Agreement;

 


    20 


     


    

E.      QPharma’s
Facility complies with and QPharma will maintain its compliance with the regulations for the manufacture of hormonal products;

 

F.      QPharma
will maintain all records and reports as required under this Agreement, and as required to comply with Applicable Laws;

 

G.      QPharma
will not in the performance of its obligations under this Agreement use those services prohibited to be provided by any person
debarred or suspended (or subject to debarment or suspension) under 21 U.S.C. §335(a) or (b) or otherwise disqualified by
Applicable Law; 

 

H.      (i)
QPharma is not nor has it ever been, and (ii) QPharma has not used, and will not use, the services of any person excluded, debarred,
suspended, or otherwise ineligible to participate in the Federal health care programs or in Federal procurement or non-procurement
programs, and has not used, and will not use, those services prohibited to be provided by any person listed on the HHS/OIG List
of Excluded Individuals/Entities (http://www.oig.hhs.gov), the GSA’s List of Parties Excluded from Federal Programs
(http://www.epls.gov), or the FDA Debarment List (http://www.fda.gov/ora/compliance_ref/debar/default.htm), as amended
or replaced from time to time, in connection with any of the services performed under this Agreement. QPharma further certifies
that it, and, to its knowledge, any other person or entity used by QPharma in performing any of the services under this Agreement,
has not been convicted of a criminal offense that falls within the ambit of 42 U.S.C. §1320a-7(a). QPharma agrees to notify
TXMD promptly in the event QPharma, or any person used by QPharma in connection with this Agreement, ever becomes excluded, debarred,
suspended, or, otherwise to its knowledge, ineligible to participate in Federal health care programs or in Federal procurement
or non-procurement programs. This certification applies to QPharma and its respective officers, agents, and employees as well
as subcontractors performing on behalf of QPharma under this Agreement;

 

I.      QPharma
has all necessary authority to use the QPharma technology utilized with the Product and as contemplated by this Agreement; there
are no patents owned by others related to the QPharma IP utilized with the Product that would be infringed or misused by QPharma’s
performance of the Agreement; and, to its knowledge, no trade secrets or other proprietary rights of others related to the QPharma
IP utilized with the Product that would be infringed or misused by QPharma’s performance of this Agreement; 

 

J.      QPharma
will not release any Batch of Product if the required certificates of conformance indicate that Product does not comply with the
Specifications; and

 


K.      no
transactions or dealings under this Agreement shall be conducted with or for an individual or entity that is designated as the
target of any sanctions, restrictions or embargoes administered by the United Nations, European Union, United Kingdom, or the
United States. 

 

12.2       TXMD.
TXMD represents, warrants and undertakes to QPharma that:

 

A.      all
TXMD-supplied Materials shall have been produced in accordance with Applicable Laws, shall comply with all applicable specifications,
including the Specifications, shall not be adulterated, misbranded or mislabeled within the meaning of Applicable Laws, and shall
have been provided in accordance with the terms and conditions of this Agreement; 

 


    21 


     


    
 

B.      the
content of all artwork provided to QPharma shall comply with all Applicable Laws; 

 

C.      all
Product delivered to TXMD by QPharma shall be held, used and disposed of by or on behalf of the TXMD in accordance with all Applicable
Laws, and TXMD will otherwise comply with all laws, rules, regulations and guidelines applicable to TXMD’s performance under
this Agreement; 

 

D.      TXMD
will not release any Batch of Product if the required certificates of conformance indicate that Product does not comply with the
Specifications or if TXMD does not hold all necessary Regulatory Approvals to market and sell the Product; 

 

E.      TXMD
has all necessary authority to use and to permit QPharma to use pursuant to this Agreement all intellectual property related to
Product or TXMD-supplied Materials (including artwork), and the Processing by QPharma of the foregoing, including any copyrights,
trademarks, trade secrets, patents, inventions and developments; to TXMD’s knowledge there are no patents owned by others
related to the TXMD IP utilized with the Product that would be infringed or misused by TXMD’s performance of the Agreement;
and, to its knowledge, no trade secrets or other proprietary rights of others related to the TXMD IP utilized with the Product
that would be infringed or misused by TXMD’s performance of this Agreement; 

 

F.      To
TXMD’s knowledge the services to be performed by QPharma under this Agreement will not violate or infringe upon any trademark,
tradename, copyright, patent, trade secret, or other intellectual property or other right held by any person or entity; provided
that TXMD makes no representation with respect to the QPharma IP; 

 

G.      TXMD
has the full power and authority to execute and deliver this Agreement and perform its covenants, duties, and obligations described
in this Agreement, and once executed, this Agreement will be a valid, legal, and binding obligation upon TXMD; and

 

H.      no
transactions or dealings under this Agreement shall be conducted with or for an individual or entity that is designated as the
target of any sanctions, restrictions or embargoes administered by the United Nations, European Union, United Kingdom, or the
United States. 

 


12.3        Limitations.
THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE ARE THE SOLE AND EXCLUSIVE REPRESENTATIONS AND WARRANTIES MADE BY
EACH PARTY TO THE OTHER PARTY, AND NEITHER PARTY MAKES ANY OTHER REPRESENTATIONS, WARRANTIES OR GUARANTEES OF ANY KIND WHATSOEVER,
INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A PARTICULAR PURPOSE INCLUDING, WITHOUT LIMITATION,
ANY REPRESENTATION OR WARRANTY BY TXMD WITH REGARD TO THE TXMD EQUIPMENT, WHICH IS PROVIDED “AS IS.”

 

12.4        Compliance
with Anti-Corruption Laws.

 

Each
Party agrees that, in the performance of its obligations under this Agreement, it will not: (i) provide or promise to provide,
directly or indirectly, any unlawful contribution, gift, entertainment, or other unlawful payment to any foreign or domestic government
employee relating to political activity; (ii) take any action, directly or indirectly, that violates Foreign Corrupt Practices
Act (“FCPA”), or any other applicable anti-corruption law of any foreign jurisdiction, including, without limitation,
“use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment,
promise to pay, or authorization of the payment of any money, or offer, gift, promise to give, or authorization of the giving
of anything of value” to any “foreign official” (as is defined in the FCPA), any foreign political party or
official thereof, or any candidate for foreign political office, to influence their acts or decisions in their official capacity,
to induce them to do or omit from doing any act in violation of their lawful duty, or to secure any improper advantage in order
to assist in obtaining business, or retaining business, or directing business to any person; and (iii) make or propose to make
any bribe, payoff, influence payment, kickback, unlawful rebate, or other similar unlawful payment of any nature, including to
healthcare providers or those employed by any governmental institutions.

 


    22 


     


    
 

12.5       Covenant
of QPharma. QPharma hereby covenants and agrees that it shall neither directly or indirectly, on behalf of itself or a third
party, engage in or assist a third party, in developing, manufacturing or commercializing a generic product of the Product in
the Territory during the Term of this Agreement, and during the [***] ([***]) month period thereafter. [***].


 

ARTICLE
13
INDEMNIFICATION

 


13.1       Indemnification
by QPharma. QPharma shall indemnify, defend and hold harmless TXMD, its Affiliates, and their respective shareholders, directors,
officers and employees (“TXMD Indemnitees”) from and against any and all suits, claims, losses, demands, liabilities,
damages, costs and expenses (including reasonable attorneys’ fees and reasonable investigative costs) in connection with
any suit, demand or action brought by any third party (“Losses”) directly or indirectly arising out of or resulting
from (a) any breach of its representations, warranties or obligations set forth in this Agreement; (b) any negligence or willful
misconduct by QPharma, its Affiliates, subcontractors, employees or agents; (c) any misrepresentation made by QPharma in this
Agreement; (d) a violation of, or non-compliance with any Applicable Law by QPharma, its Affiliates, subcontractors, employees
or agents in the performance of this Agreement; (e) the infringement or alleged infringement of any trade secrets, copyrights,
trademarks, trade names, or other proprietary or contractual rights of any third party arising from QPharma’s performance
of services under this Agreement (except to the extent arising from the making or using of TXMD-supplied Materials) or (f) the
use of the TXMD Equipment on behalf of any third party, and the storage, handling and use of any items manufactured with the use
of the TXMD Equipment, in each case of clauses (a) through (e) above, except to the extent that TXMD is obligated to indemnify
any of the QPharma Indemnitees pursuant to Section 13.2 for such events.

 

13.2       Indemnification
by TXMD. TXMD shall indemnify, defend and hold harmless QPharma, its Affiliates, and their respective shareholders, directors,
officers and employees (“QPharma Indemnitees”) from and against any and all Losses directly or indirectly arising
out of or resulting from (a) any promotion, distribution, sale or use of or exposure to the Product or TXMD-supplied Materials,
or APIs, other than claims by QPharma employees and contractors arising from Processing under this Agreement; (b) any negligence
or willful misconduct of TXMD, its Affiliates, subcontractors, employees or agents, (c) any breach of TXMD’s representations,
warranties or obligations set forth in this Agreement; (d) the content of TXMD’s instructions to the extent they are followed
by QPharma and violate Applicable Laws; (e) the conduct of any clinical trials by or on behalf of TXMD utilizing Product or APIs;
(f) any actual or alleged infringement or violation of any third party patent, trade secret, copyright, trademark or other proprietary
right by the use, as authorized, of intellectual property or other information provided by TXMD to QPharma, including TXMD-supplied
Material; in each case of clauses (a) through (f) above, except to the extent that QPharma is obligated to indemnify any of the
TXMD Indemnitees pursuant to Section 13.1 for such events. 

 


    23 


     


    
 

13.3       Indemnification
Procedures. All indemnification obligations in this Agreement are conditioned upon the indemnified party (a) promptly notifying
the indemnifying party of any claim or liability of which the indemnified party becomes aware (including a copy of any related
complaint, summons, notice or other instrument); provided, that failure to provide such notice within a reasonable period of time
shall not relieve the indemnifying party of any of its obligations hereunder except to the extent the indemnifying party is prejudiced
by such failure, (b) allowing the indemnifying party to conduct and control the defense of any such claim or liability and any
related settlement negotiations (at the indemnifying party’s expense), (C) cooperating with the indemnifying party in the
defense of any such claim or liability and any related settlement negotiations (at the indemnifying party’s expense) and
(D) not compromising or settling any claim or liability without prior written consent of the indemnifying party.

 

ARTICLE
14
LIMITATIONS OF LIABILITY

 

14.1       NEITHER
PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE OR CONSEQUENTIAL DAMAGES OR LOSS OF REVENUES,
PROFITS OR DATA ARISING OUT OF PERFORMANCE UNDER THIS AGREEMENT, WHETHER IN CONTRACT OR IN TORT, EVEN IF SUCH PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF SUCH DAMAGES.

 


ARTICLE
15
INSURANCE

 

For
so long as each Party has any indemnity obligations hereunder to the other Party, each Party shall obtain and maintain such type
and amounts of liability insurance as are normal and customary for the activities contemplated by this Agreement. Each Party shall
upon request provide the other Party with written proof of insurance. Notwithstanding the foregoing, QPharma hereby represents
and warrants to TXMD that it has and shall maintain at all times during the term of this Agreement product liability insurance,
professional negligence insurance and general commercial liability insurance in a minimum in aggregate of [***] Euros (€[***]).
QPharma shall name TXMD as an additional named insured under such policies.

 


    24 


     


    
 

ARTICLE
16
TERM AND TERMINATION

 

16.1        Term.
The term of this Agreement shall commence as of the Effective Date and shall expire at the end of the Initial Term; provided,
however, TXMD shall have the right to renew the Agreement thereafter for successive one-year terms upon giving at least [***]
([***]) days’ written notice of such renewal prior to the expiration of the Initial Term or any annual renewal thereafter.

 

16.2        Termination.
This Agreement may be terminated Immediately upon written notice without further action:

 

A.      By
either Party if the other Party files a petition in bankruptcy, or enters into an agreement with its creditors, or applies for
or consents to the appointment of a receiver, administrative receiver, trustee or administrator, or makes an assignment for the
benefit of creditors, or suffers or permits the entry of any order adjudicating it to be bankrupt or insolvent and such order
is not discharged within thirty (30) days, or takes any equivalent or similar action in consequence of debt in any jurisdiction;
or

 

B.      By
TXMD upon [***] ([***]) days prior written notice to QPharma in the event TXMD ceases pursuit of Regulatory Approval for, or to
offer for sale or to sell, Product, due to material regulatory, patient health, or intellectual property issues. 

 

C.      By
either Party due to an uncured breach of this Agreement following [***] ([***]) days’ written notice, the elements of such
breach being described in such notice in reasonable detail.

 


D.      By
TXMD for convenience upon [***] ([***]) months’ written notice, or by QPharma after the first anniversary of this Agreement
upon [***] ([***]) months’ written notice due to the failure of QPharma to produce Product at a profit based upon the then
existing supply projections by TXMD or for other demonstrated economic hardship. Upon notice from QPharma of the exercise of its
rights under this Section 16.2(D) to terminate the Agreement, TXMD shall have the right exercisable in the [***] ([***]) day period
following such notice to require QPharma to re-negotiate the price of Products in good faith for a period of up to [***] ([***])
days. The Parties shall not be obligated to reach agreement regarding a revised price of Products.

 

16.3        Effects
of Termination. Expiration or termination of this Agreement shall be without prejudice to any rights or obligations that accrued
to the benefit of either party prior to such expiration or termination. In the event of a termination of this Agreement:

 

A.      QPharma
shall promptly return to TXMD, at TXMD’s expense and direction, any remaining inventory of Product or TXMD-supplied Materials;
provided, that all outstanding invoices have been paid in full; 

 

B.      TXMD
shall pay QPharma all invoiced amounts outstanding hereunder, plus, upon receipt of invoice therefor, for any (i) Product that
has been shipped pursuant to Purchase Orders but not yet invoiced, (ii) Product Processed pursuant to Purchase Orders that has
been completed but not yet shipped, and (iii) except following a termination by TXMD pursuant to Section 16.2(A) or (B), all Product
in process of being Processed pursuant to Purchase Orders (or, alternatively, TXMD may instruct QPharma to complete such work
in process, and the resulting completed Product shall be governed by clause (ii)); and 

 


    25 


     


    
 

16.4       Except
as otherwise set forth in this Agreement, in the event that this Agreement is terminated for any reason other than by TXMD pursuant
to Section 16.2(A) or (B), TXMD shall pay QPharma for all costs and expenses incurred, and all non-cancellable commitments made,
in connection with QPharma’s performance of this Agreement, so long as such costs, expenses or commitments were made by
QPharma consistent with TXMD’s most recent ordering history, and have not otherwise been paid pursuant to Section 16.3(B).
At TXMD’s discretion, such transfer shall not be considered complete until such third party transferee has successfully
Processed and released for human use [***] ([***]) successive Batches of Product. If QPharma terminates this Agreement pursuant
to Section 16.2(D), it shall provide to TXMD reasonable person-hours as TXMD shall require, at QPharma’s then standard published
rates, to effectuate a transfer of Processing to a third party of TXMD’s choice. QPharma shall provide reasonable assistance,
as requested by TXMD, to identify third parties capable and willing to provide Processing of Product promptly.

 

16.5        Interruption
of Supply; Safety Stock.

 

A.      In
the event QPharma fails to timely deliver the quantities of Product ordered that comply with the requirements of this Agreement
on [***] ([***]) consecutive occasions or on any [***] ([***]) occasions during any [***] ([***]) [***] period, TXMD shall be
entitled to cause QPharma to conduct Process Know-How Transfer along with pertinent books and records to TXMD or its designee,
pursuant to the Process Know-How Transfer Plan in order to allow the Processing of Product by a third party for TXMD, its Affiliates
and their respective licensees. QPharma will be reimbursed at a reasonable rate for the time of its personnel for such technology
transfer.

 


B.      To
mitigate the risk of TXMD going out of stock, QPharma shall maintain such safety stocks of APIs, Raw Materials, Components and
Product as would be reasonably prudent in the combination drug-device product industry under relevant circumstances, particularly
in light of those APIs, Raw Materials and Components that are procured from single sources of supply. QPharma shall use reasonable
efforts to put in place a written risk mitigation plan with the consultation of TXMD to address such issues, and shall reasonably
endeavor to secure multiple sources of supply for all critical APIs, Raw Materials and Components (the “Risk Mitigation
Plan”).

 

16.6        Survival.
The rights and obligations of the parties shall continue under Articles 11 (Intellectual Property), 13 (Indemnification), 14 (Limitations
of Liability), 17 (Notice), 18 (Miscellaneous); under Articles 10 (Confidentiality and Non-Use) and 15 (Insurance), in each case
to the extent expressly stated therein; and under Sections 7.3 (Payment Terms), 7.5 (Taxes), 7.6 (TXMD and Third Party Expenses),
9.1 (Recordkeeping), 9.6 (Recall), 12.3 (Limitations on Warranties), 16.3 (Effect of Termination) and 16.4 (Survival), in each
case in accordance with their respective terms if applicable, notwithstanding expiration or termination of this Agreement. 

 


    26 


     


    
 

ARTICLE
17
NOTICE

 

All
notices and other communications hereunder shall be in writing and shall be deemed given: (A) when delivered personally or by
hand; (B) when received or refused, if sent by registered or certified mail (return receipt requested), postage prepaid; or (C)
when delivered, if sent by express courier service; in each case to the parties at the following addresses (or at such other address
for a party as shall be specified by like notice; provided, that notices of a change of address shall be effective only
upon receipt thereof): 

	 

	 


	To
TXMD:

	TherapeuticsMD,
Inc.


	 

	6800
Broken Sound Parkway NW, Third Floor


	 

	Boca
Raton, Florida 33487


	 

	Attn:
President


	 

	 


	With
a copy to:

	Legal
Department at the above address


	 

	 


	To
QPharma:

	QPharma
AB


	 

	Agneslundsvagen
27


	 

	Malmo,
Sweden


	 

	Attn:
Managing Director




 

ARTICLE
18
MISCELLANEOUS

 

18.1       Entire
Agreement; Amendments. This Agreement, the Quality Agreement, and the Validation Costs and Expenses; Capital Equipment Procurement
and Installation Costs and Expenses (referenced as Exhibit B to the Term Sheet) constitute the entire understanding between the
Parties, and supersede any contracts, agreements or understandings (oral or written) of the Parties, with respect to the subject
matter hereof including the Term Sheet, other than Exhibit B thereto. For the avoidance of doubt, this Agreement does not supersede
any existing generally applicable confidentiality agreement between the Parties as it relates to time periods prior to the date
hereof or to business dealings not covered by this Agreement. No term of this Agreement may be amended except upon written agreement
of both parties, unless otherwise expressly provided in this Agreement. 

 


18.2       Captions;
Certain Conventions. The captions in this Agreement are for convenience only and are not to be interpreted or construed as
a substantive part of this Agreement. Unless otherwise expressly provided herein or the context of this Agreement otherwise requires,
(A) words of any gender include each other gender, (B) words such as “herein”, “hereof”, and “hereunder”
refer to this Agreement as a whole and not merely to the particular provision in which such words appear, (C) words using the
singular shall include the plural, and vice versa, (D) the words “include(s)” and “including” shall be
deemed to be followed by the phrase “but not limited to”, “without limitation” or words of similar import,
(E) the word “or” shall be deemed to include the word “and” (e.g., “and/or”) and (F) references
to “Article,” “Section,” “subsection,” “clause” or other subdivision, or to an
Attachment or other appendix, without reference to a document are to the specified provision or Attachment of this Agreement.
This Agreement shall be construed as if it were drafted jointly by the parties.

 


    27 


     


    
 

18.3       Further
Assurances. The parties agree to execute, acknowledge and deliver such further instruments and to take all such other incidental
acts as may be reasonably necessary or appropriate to carry out the purpose and intent of this Agreement.

 

18.4       No
Waiver. Failure by either party to insist upon strict compliance with any term of this Agreement in any one or more instances
will not be deemed to be a waiver of its rights to insist upon such strict compliance with respect to any subsequent failure.

 

18.5       Severability.
If any term of this Agreement is declared invalid or unenforceable by a court or other body of competent jurisdiction, the remaining
terms of this Agreement will continue in full force and effect.

 

18.6       Independent
Contractors. The relationship of the parties is that of independent contractors, and neither party will incur any debts or
make any commitments for the other party except to the extent expressly provided in this Agreement. Nothing in this Agreement
is intended to create or will be construed as creating between the parties the relationship of joint ventures, co-partners, employer/employee
or principal and agent. Neither party shall have any responsibility for the hiring, termination or compensation of the other party’s
employees or contractors or for any employee benefits of any such employee or contractor.

 

18.7       Successors
and Assigns. This Agreement will be binding upon and inure to the benefit of the parties, their successors and permitted assigns.
Neither party may assign this Agreement, in whole or in part, without the prior written consent of the other party, except that
either party may, without the other party’s consent (but subject to prior written notice), assign this Agreement in its
entirety to an Affiliate or to a successor to substantially all of the business or assets of the assigning party or the assigning
party’s business unit responsible for performance under this Agreement.

 


18.8       No
Third Party Beneficiaries. This Agreement shall not confer any rights or remedies upon any person or entity other than the
parties named herein and their respective successors and permitted assigns.

 

18.9       Governing
Law. This Agreement shall be governed by and construed under the laws of England and Wales, excluding its conflicts of law
provisions. The United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement.

 

18.10     Dispute
Resolution. Any dispute that arises between the parties in connection with this Agreement shall first be presented to the
senior executives of the Parties for consideration and resolution. If such executives cannot reach a resolution of the dispute
within a reasonable time, then the parties may seek remedies in a court of law. 

 

18.11     Publicity.
Neither party will make any press release or other public disclosure regarding this Agreement or the transactions contemplated
hereby without the other party’s express prior written consent, except as required under Applicable Laws, by any governmental
agency or by the rules of any stock exchange on which the securities of the disclosing party are listed, in which case the party
required to make the press release or public disclosure shall use commercially reasonable efforts to obtain the approval of the
other party as to the form, nature and extent of the press release or public disclosure prior to issuing the press release or
making the public disclosure.

 


    28 


     


    
 

18.12     Right
to Dispose and Settle. If QPharma requests in writing from TXMD direction with respect to disposal of any inventories of Product,
TXMD-supplied Materials, equipment, samples or other items belonging to TXMD and is unable to obtain a response from TXMD within
a reasonable time period after making reasonable efforts to do so, QPharma shall be entitled in its sole discretion to (A) dispose
of all such items and (B) set-off any and all amounts due to QPharma or any of its Affiliates from TXMD against any credits TXMD
may hold with QPharma or any of its Affiliates.

 

18.13     Force
Majeure. Except as to payments required under this Agreement, neither party shall be liable in damages for, nor shall this
Agreement be terminable or cancelable by reason of, any delay or default in such party’s performance hereunder if such default
or delay is caused by events beyond such party’s reasonable control, including but not limited to acts of God, law or regulation
or other action or failure to act of any government or agency thereof, war or insurrection, civil commotion, destruction of production
facilities or materials by earthquake, fire, flood or weather, labor disturbances, epidemic or failure of suppliers, vendors,
public utilities or common carriers; provided, that the party seeking relief under this Section shall immediately notify
the other party of such cause(s) beyond such party’s reasonable control. The party that may invoke this Section shall use
commercially reasonable efforts to reinstate its ongoing obligations to the other party as soon as practicable. If the cause(s)
shall continue unabated for three (3) consecutive months, then both parties shall meet to discuss and negotiate in good faith
what modifications to this Agreement should result from such cause(s).

 

18.14     Counterparts.
This Agreement may be executed in one or more counterparts, each of which will be deemed an original but all of which together
will constitute one and the same instrument. Any photocopy, facsimile or electronic reproduction of the executed Agreement shall
constitute an original.

 


[Signature
page follows]

 


    29 


     


    
 

IN
WITNESS WHEREOF, the parties have caused their respective duly authorized Representatives to execute this Agreement effective
as of the date first written above. 

	 

	 

	 

	 

	 

	 

	 

	 

	 


	QPHARMA
PHARMA AB

	 

	THERAPEUTICSMD,
INC.


	 

	 

	 


	By:

	/s/
David Segerberg

	 

	By:

	/s/
Dan Cartwright


	 

	 

	 

	 

	 


	Name:

	David
Segerberg

	 

	Name:

	Dan
Cartwright


	 

	 

	 

	 

	 


	Title:

	Managing
Director

	 

	Title:

	CFO




 


     


     


    
 

ATTACHMENT
A

 

SPECIFICATIONS

 


     


     


    
 

ATTACHMENT
B

 

TXMD
EQUIPMENT (as of 12/18/18)

 


Purchased
Assets
Equipment used for production and analysis of NES/EE CVR

 

	Description
(swe)

	Description
(eng)

	Equipment
No

	Process
step

	QPharma
Building


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ATTACHMENT
C

 

TXMD-SUPPLIED
MATERIALS (as of 12/18/18)

 


[***]

 



     


     


    



ATTACHMENT
D

 

UNIT
PRICING

 

During
the Initial Pricing Period, QPharma shall sell Product in final dosage form, packaged for end user use, to TXMD at the prices
set forth below. [***]

 

[***]

 

	Purchase
Per Contract Year

	 

	 

	Prices
Not to Exceed (low yield)


	 

	 

	 

	 


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	More
than [***] units of Product

	 

	 

	$[***]
per unit


	 

	 

	 

	 


	Purchase
Per Contract Year

	 

	Prices
Not to Exceed (anticipated yield)


	 

	 

	 

	 


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	[***]
– [***] units of Product

	 

	 

	$[***]
per unit


	More
than [***] units of Product

	 

	 

	To
be determined




 

The
foregoing prices include a recovery for depreciation expenses of Facility improvements made by QPharma. Recovery of these depreciation
expenses will end upon expiration of the depreciation recovery schedule. TXMD will purchase a minimum of [***] units of Product
per Contract Year.

 

The
foregoing prices include the purchase by, and payment for, both of the Product’s APIs by QPharma. If TXMD supplies one or
both of the Product’s APIs to QPharma at no cost, or QPharma procures one or both APIs and passes the cost through to TXMD,
the foregoing prices will be adjusted downward, as reasonably agreed to by QPharma and TXMD.

 






     


     


    

 

These
prices will be applied to cumulative purchased by TXMD together with its Affiliates and licensees, if any. The unit price for
which QPharma will sell Product to TXMD, its Affiliates and their licensees during the Initial Pricing Period will be as set forth
in the table above in accordance with the cumulative quantities ordered by and on behalf of such parties during each Contract
Year. Within [***] ([***]) days following (i) the end of each Contract Year or (ii) the expiration or termination of the Agreement,
as the case may be, QPharma shall determine the total quantity of Product ordered by or on behalf of TXMD, its Affiliates and
their respective licensees during the prior Contract Year (or portion of a Contract Year in the event of a termination) and issue
a credit memo or refund to TXMD, at its option, in such amount as may be necessary to true up amounts actually paid by TXMD with
the prices to which TXMD, its Affiliates and their respective licensees were entitled during such Contract Year based on their
actual cumulative orders.

 


TXMD
and QPharma will revisit this yield-based pricing scheme after the first commercial Batch of Product as defined in Section 7.1A.