<PAGE>

                                                          CONFIDENTIAL TREATMENT

================================================================================


                         EXCLUSIVITY TRANSFER AGREEMENT





                                  BY AND AMONG



                           ANDRX PHARMACEUTICALS, LLC,



                          ANDRX PHARMACEUTICALS, INC.,



                            IMPAX LABORATORIES, INC.



                                       AND



                        TEVA PHARMACEUTICALS CURACAO N.V.





                               DATED JULY 31, 2003


================================================================================





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                                                 Table of Contents
                                                 -----------------
                                                                                                          Page
                                                                                                          ----

ARTICLE I.            INTERPRETATION AND DEFINITIONS.........................................................2

         Section 1.1.      Preamble..........................................................................2
         Section 1.2.      Headings..........................................................................2
         Section 1.3.      Definitions.......................................................................2
         Section 1.4.      Agreement with Respect to Each Product............................................8

ARTICLE II.           PRINCIPAL TERMS........................................................................8

         Section 2.1.      Pre-Launch Manufacturing..........................................................8
         Section 2.2.      Ready Date Notice; Exclusivity Transfer...........................................8
         Section 2.3.      Option to Retain Production.......................................................9
         Section 2.4.      Marketing Efforts................................................................10
         Section 2.5.      Andrx Margin Payments and Additional Payments....................................11
         Section 2.6.      Impax Margin Payments............................................................14
         Section 2.7.      Shifting of Sales................................................................15
         Section 2.8.      Accounting Reconciliation/True-Up................................................15
         Section 2.9.      Dispute Resolution...............................................................15

ARTICLE III.          REPRESENTATIONS AND WARRANTIES........................................................16

         Section 3.1.      Representations and Warranties of Andrx..........................................16
         Section 3.2.      Representations and Warranties of Impax..........................................17
         Section 3.3.      Representations and Warranties of Teva...........................................17
         Section 3.4.      No Other Representations.........................................................18

ARTICLE IV.           COVENANTS.............................................................................18

         Section 4.1.      Regulatory Filings...............................................................18
         Section 4.2.      Cooperation......................................................................19
         Section 4.3.      Transferability of Andrx ANDA....................................................19
         Section 4.4.      Limited Remedies.................................................................19

ARTICLE V.            INDEMNIFICATION AND CONTRIBUTION......................................................19

         Section 5.1.      Andrx Indemnification............................................................19
         Section 5.2.      Impax Indemnification............................................................20
         Section 5.3.      Teva Indemnification.............................................................20
         Section 5.4.      Other Indemnification............................................................20
         Section 5.5.      Claims; Notification.............................................................21
         Section 5.6.      No Consequential Damages.........................................................21
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                                        i
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<S>      <C>          <C>                                                                                  <C>
ARTICLE VI.           CONFIDENTIALITY.......................................................................21

         Section 6.1.      General..........................................................................21
         Section 6.2.      Special Provisions Following Viability Date......................................21
         Section 6.3.      Disclosure Required by Law.......................................................22
         Section 6.4.      Return of Confidential Information...............................................22
         Section 6.5.      Publicity; Advertising...........................................................22
         Section 6.6.      Sole Property....................................................................22
         Section 6.7.      Effectiveness and Survival.......................................................22
         Section 6.8.      Intent...........................................................................22

ARTICLE VII.          TERMINATION...........................................................................22

         Section 7.1.      Termination......................................................................22
         Section 7.2.      Effect of Termination............................................................23

ARTICLE VIII.         MISCELLANEOUS.........................................................................24

         Section 8.1.      Force Majeure....................................................................24
         Section 8.2.      Amendments.......................................................................24
         Section 8.3.      Press Releases; Disclosures......................................................24
         Section 8.4.      Suits; Litigation................................................................25
         Section 8.5.      Payments in U.S. Dollars.........................................................25
         Section 8.6.      Governing Law....................................................................25
         Section 8.7.      Notices..........................................................................25
         Section 8.8.      Entire Agreement.................................................................27
         Section 8.9.      Independent Contractor...........................................................27
         Section 8.10.     Successors and Assigns...........................................................27
         Section 8.11.     Severability.....................................................................27
         Section 8.12.     Submission to Jurisdiction.......................................................27
         Section 8.13.     Waiver of Jury Trial.............................................................28
         Section 8.14.     Third Party Beneficiaries........................................................28
         Section 8.15.     Counterparts.....................................................................28
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                                                        ii

<PAGE>
                                                          CONFIDENTIAL TREATMENT


                         EXCLUSIVITY TRANSFER AGREEMENT

         This Exclusivity Transfer Agreement (this "Agreement") is entered into
as of July 31, 2003 by and among ANDRX PHARMACEUTICALS, LLC, a Delaware limited
liability company, and ANDRX PHARMACEUTICALS, INC., a Florida corporation, each
with offices located at 4955 Orange Drive, Davie, FL 33314 (such entities,
collectively, "Andrx"), IMPAX LABORATORIES, INC., a Delaware corporation with
offices located at 30831 Huntwood Avenue, Hayward, CA 94544 ("Impax"), and TEVA
PHARMACEUTICALS CURACAO N.V., a Netherlands Antilles company with offices
located at Schotegatweg Oost 29 D, Curacao, Netherlands Antilles ("Teva").
Andrx, Impax and Teva are sometimes collectively referred to herein as the
"Parties" and separately as a "Party." Certain capitalized terms used herein are
defined in Section 1.3 hereof.

         WHEREAS, each of Andrx and Impax has filed ANDAs for each of the
Products and is seeking FDA Approval of such ANDAs;

         WHEREAS, Andrx believes in good faith that, upon Final Approval by the
FDA of the applicable ANDA for each Product, Andrx is entitled to be awarded
First to File Exclusivity for each Product;

         WHEREAS, as of the date hereof, Andrx does not have Final Approval by
the FDA of the Products due to regulatory, legal and/or technical issues;

         WHEREAS, Impax and Teva have entered into a Strategic Alliance
Agreement dated June 27, 2001 (as may be amended from time to time, the
"Strategic Alliance Agreement"), whereby Teva and Impax have agreed, among other
things, to cooperate in completing the development of the Products and to
register, manufacture and Market the Products in the Territory;

         WHEREAS, Impax has successfully scaled-up and validated its
manufacturing processes for the Products;

         WHEREAS, Impax believes in good faith that its ANDAs for the Products
will soon receive Tentative Approval and that it can build commercial launch
quantities of its Products within a reasonable time frame and can thereafter
continue to manufacture commercial quantities of its Products for Marketing
during the Andrx Margin Period as further provided herein;

         WHEREAS, the Parties desire to enter into this Agreement to make the
Products more quickly available in the Territory and, as further provided in
this Agreement, and are willing to share the Contract Margins from the sale of
the Products in the Territory; and

         WHEREAS, in order to make the Products available in the Territory as
soon as possible, Impax and Teva desire that Andrx effect an Exclusivity
Transfer with respect to the Products to Impax and Teva, or if such Exclusivity
Transfer is not possible, that Andrx Relinquish such rights, all on the terms
and subject to the conditions set forth in this Agreement.








*Filed under application for confidential treatment.


<PAGE>

                                                          CONFIDENTIAL TREATMENT


         NOW THEREFORE, solely in consideration of the premises and the
representations, warranties, covenants and agreements herein contained and
intending to be legally bound hereby, the Parties hereby agree as follows:

                                   ARTICLE I.
                         INTERPRETATION AND DEFINITIONS

             Section 1.1. Preamble. The preamble to this Agreement forms an
integral part hereof.

             Section 1.2. Headings. Section headings in this Agreement are
intended solely for convenience of reference and shall be given no effect in the
interpretation of this Agreement.

             Section 1.3. Definitions. For the purposes of this Agreement, the
following words and phrases shall bear the respective meanings assigned to them
below (and cognate expressions shall bear corresponding meanings):

             (a) "Additional Payments" shall mean, (A) in the case of an
Exclusivity Transfer with respect to both Products, a total of up to [xxxx]*,
payable monthly in arrears commencing at the beginning of the Andrx Margin
Period and ending at the end of the Exclusivity Period with respect to any
Product, at the rate of [xxxx]* per month, (B) in the case of an Exclusivity
Transfer with respect to [xxxx]* Product only, a total of up to [xxxx]*, payable
monthly in arrears commencing at the beginning of the Andrx Margin Period and
ending at the end of the Exclusivity Period with respect to such Product, at the
rate of [xxxx]* per month, (C) [xxxx]* of a Relinquishment [xxxx]*, payable
monthly in arrears commencing at the beginning of the Andrx Margin Period at the
rate of [xxxx]* per month, (D) in the case of a Relinquishment [xxxx]*, payable
monthly in arrears commencing at the beginning of the Andrx Margin Period at the
rate of [xxxx]* per month, and (E) in the case of an Exclusivity Transfer or
Relinquishment with respect to the 100 mg strength Product only, nothing;
provided, that, in the event of a Preemption, the Additional Payments will be
reduced to (1) a total of up to [xxxx]*, at the rate of [xxxx]* per month, with
respect to Exclusivity Transfers under clause (A) above, (2) a total of up to
[xxxx]*, at the rate of [xxxx]* per month, with respect to the Exclusivity
Transfer under clause (B) above, (3) a total of [xxxx]*, at the rate of [xxxx]*
per month, with respect to the Relinquishments under clause (C) above, and (D) a
total of [xxxx]*, at the rate of [xxxx]* per month, with respect to the
Relinquishment under clause (D) above.

             (b) "Affiliates" shall mean with respect to any Person, any Person
that is controlled by, controls, or is under common control with such Person.
For this purpose, "control" of a corporation or other business entity shall mean
direct or indirect beneficial ownership of more than fifty percent (50%) of the
voting interest in, or more than fifty percent (50%) in the equity of, or the
right to appoint more than fifty percent (50%) of the directors or management of
such corporation or other business entity.

             (c) "ANDA" shall mean an Abbreviated New Drug Application filed
with the FDA pursuant to its rules and regulations.




                                        2

*Filed under application for confidential treatment.


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                                                          CONFIDENTIAL TREATMENT


             (d) "Andrx Launch Date" shall mean, on a Product-by-Product basis,
the date on which Andrx or an Affiliate of Andrx makes its first commercial sale
of such Product to an unrelated third party in an arms-length transaction in the
Territory.

             (e) "Andrx Margin" shall mean for each Product sold by Teva, Impax
or their respective Affiliates, respectively, (i) if Andrx effects an
Exclusivity Transfer with respect to such Product pursuant to Section 2.2(b)
hereof, an amount equal to [xxxx]* percent [xxxx]* of the Contract Margin of
such Product with respect to the Exclusivity Period for such Product, and (ii)
if Andrx Relinquishes its First to File Exclusivity [xxxx]* pursuant to Section
2.2(c) hereof, an amount equal to [xxxx]* percent [xxxx]* of the Contract Margin
of such Product.

             (f) "Andrx Margin Period" shall have the meaning set forth in
Section 2.4(a).

             (g) "API" shall mean the bulk active pharmaceutical ingredient
bupropion used in the manufacture of the Products.

             (h) "Applicable Law" shall mean the applicable laws, rules,
regulations, guidelines and requirements of any Governmental Entity related to
the development, registration, manufacture, importation, Marketing, sale and
distribution of the Products in the Territory.

             (i) "Approval(s)" shall mean any and all approvals, licenses,
registrations or authorizations of the applicable Regulatory Authority necessary
for the Marketing of the Products and reimbursement, if applicable, in the
Territory.

             (j) "Calendar Month" shall mean each of the twelve monthly periods
of the year, beginning in January and ending in December.

             (k) "Calendar Quarter" shall mean the up to three (3) month period
ending on March 31, June 30, September 30 or December 31.

             (l) "cGMP" shall mean current good manufacturing practices as
required by the rules and regulations of the FDA as applicable to the
manufacture, packaging, handling, storage and control of the Products in the
Territory.

             (m) "Chargebacks" shall mean the amount paid by any Party or its
Affiliates to reconcile the amounts invoiced to persons in the chain of commerce
to the actual amount that such Party or its Affiliate has agreed to charge its
customer for the Product, without regard as to whether such customer acquires
the Product directly from the Party or its Affiliate or from a third party (such
as a wholesaler).

             (n) "Competing Product" shall mean any finished pharmaceutical
product for sale in the prescription drug marketplace as a generic that contains
the same active ingredients in the same dosage form and strength as any Product,
with twice daily administration, other than Products sold under the trademark
Wellbutrin(R) SR or Zyban(R).





                                       3

*Filed under application for confidential treatment.

<PAGE>

                                                          CONFIDENTIAL TREATMENT

             (o) "Confidential Information" shall mean the existence and terms
of this Agreement and the transactions contemplated hereby and all information,
data and/or know-how disclosed by any Party to another Party concerning the
Products or concerning the technology, marketing strategies or business of the
disclosing Party (whether disclosed prior to or subsequent to the date hereof).
Confidential Information shall not include information, data or know-how that
the receiving Party can show:

                   (i) was in the public domain at the time of the disclosure by
             the disclosing Party, or thereafter becomes part of the public
             domain without any fault of the receiving Party;

                   (ii) rightfully was in its possession prior to the disclosure
             by the disclosing Party;

                   (iii) was lawfully obtained from a third party, who had the
             right to make such disclosures as evidenced by written records; or

                   (iv) was developed by it independently of such disclosure as
             evidenced by written records.

             (p) "Contract Margin" shall mean, with respect to each Product
calculated separately, an amount equal to the Net Sales of such Product less
applicable Manufacturing Costs and less applicable Operating Expenses.

             (q) "Cost of Materials" shall mean, on a Product-by-Product basis,
the actual direct cost for inactive and active materials required for the
manufacture of the particular Product (which for purposes of clarity shall (i)
include free goods, at cost, (ii) shall not include any indirect charges,
including handling and inspection charges, and (iii) shall only include the
payment and reimbursements required by Sections 2.1(a) on one occasion).

             (r) "Distribution Margin" shall mean the excess amount that Andrx
derives from the distribution of the Products through its Affiliates that act as
distributors (presently Anda, Inc., Anda Pharmaceutical, Inc. and VIP) to the
customers of such distributor Affiliates as of the date of this Agreement, as
opposed to (i) the sale of Products directly to warehousing retailers, such as
Walgreens and Eckerds, or (ii) customers that are not customers of such
distributor Affiliates as of the date of this Agreement. As an example, if the
average selling price of Product by Andrx is $100 per unit to warehousing
retailers, and such unit is sold by Andrx's distributor Affiliate for $110 to an
existing customer, the Distribution Margin for such unit shall be $10.

             (s) "Exclusivity Period" shall mean, with respect to any Product,
the period commencing on the date an Exclusivity Transfer is effected pursuant
to Section 2.2 hereof until the end of such First to File Exclusivity rights so
transferred.

             (t) "Exclusivity Transfer" shall mean, with respect to any Product,
the transfer by Andrx of its First to File Exclusivity rights relating to such
Product to Impax and Teva in accordance with Section 2.2(b) hereof.

             (u) "FDA" shall mean the United States Food and Drug Administration
and all agencies under its direct control or any successor organization.






                                       4

*Filed under application for confidential treatment.

<PAGE>

                                                          CONFIDENTIAL TREATMENT


             (v) "Final Approval" shall mean, with respect to any Product, the
final FDA Approval of the ANDA of Impax or Andrx, as applicable, with respect to
such Product.

             (w) "First to File Exclusivity" shall mean, to the extent
applicable, up to 180 days of marketing exclusivity in the United States from
the FDA under and pursuant to 21 U.S.C. Section 355(j)(5)(B)(iv) of the Federal
Food, Drug and Cosmetic Act, as amended.

             (x) "Force Majeure Events" shall have the meaning set forth in
Section 8.1.

             (y) "Governmental Entity" shall mean any supernational, national,
foreign, federal, state or local judicial, legislative, executive,
administrative or regulatory body or authority.

             (z) "HSR Act" shall mean the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, and the rules and regulations thereunder.

             (aa) "Impax Launch Date" shall mean, on a Product-by-Product basis,
the date on which Impax, Teva or a designee of Impax or Teva makes its first
commercial sale of such Product to an unrelated third party in an arms-length
transaction in the Territory.

             (bb) "Impax Margin" shall mean, for each Product sold by Andrx or
its Affiliates, respectively, an amount equal to: [xxxx]* percent [xxxx]* of the
Contract Margin of such Product; provided, that if Impax has not sent Andrx a
Ready Date Notice on or before February 15, 2004 for any reason other than
substantial manufacturing delays resulting from the non-timely supply of API,
the foregoing [xxxx]* amount shall be reduced by [xxxx]* percentage points for
each full month delay in the provision of such Ready Date Notice. In the event
the scheduled manufacture of Product is delayed by a delay in the supply of API,
as evidenced by documentation from the supplier, the foregoing date of February
15, 2004 shall be extended by the amount of time by which the scheduled
manufacture of Product was delayed by the non-supply of API. By way of example,
the foregoing percentage would be [xxxx]* and [xxxx]*, respectively, if Impax
provides the Ready Date Notice to Andrx on March 16, 2004 and April 16, 2004,
respectively, except that, if the manufacturing delay resulted from a month
delay in the scheduled supply of API, the foregoing dates shall be deemed to
have been February 15, 2004 and March 15, 2004, respectively, and the foregoing
percentages shall be deemed to have been [xxxx]* and [xxxx]*, respectively.

             (cc) "Impax Margin Period" shall have the meaning set forth in
Section 2.4(b).

             (dd) "Launch Quantities" shall mean, on a Product-by-Product basis,
the quantities to launch such Product for commercial sale in the Territory, as
set forth on Schedule 1.3(dd) hereto.

             (ee) "Manufacturing Costs" shall mean, on a Product-by-Product
basis, the total of all actual direct manufacturing costs (including the Cost of
Materials and packaging material) allocable to the manufacture of the particular
Products sold in the Territory during the reporting period, as determined in
accordance with U.S. GAAP; provided, however, that Manufacturing Costs shall not
include any allocation or absorption of excess or idle capacity.





                                       5

*Filed under application for confidential treatment.
<PAGE>
                                                          CONFIDENTIAL TREATMENT


                  (ff) "Market" or "Marketing" shall mean promotion,
distribution, marketing, advertising and/or sale.

                  (gg) "Net Sales" shall mean, with respect to each of the
Products sold, the gross amount invoiced on an arms-length basis to third
parties in the Territory, when shipped to the customer, if terms of sale are
F.O.B. shipping point, and when received by the customer, if terms of sale are
F.O.B. destination, less the sum of: (a) [xxxx]* and (b) cash, trade, quantity
discounts and allowances, marketing allowances and administrative fees paid to
customers, rebates, retroactive price adjustments (e.g. shelf-stock
adjustments), cash incentive payments (e.g. slotting allowance), Chargebacks and
other specifically identifiable amounts of pricing concessions included in the
Product's gross sales substantially similar to those listed above, apportioned
to only include that portion of such item that benefits sales made during the
Andrx Margin Period or Impax Margin Period, respectively, in each case
determined in accordance with U.S. GAAP. Items in (b) above shall be subject to
adjustment pursuant to the reconciliation procedures set forth in Section 2.8.
For purposes of clarification, the items identified in subsection (b) above
shall only be deducted from the gross amount invoiced if, and only to the
extent, they are paid to customers with respect to sales of the Products, and
not for services or other unrelated activities that would not be included in a
gross to net sales calculation under U.S. GAAP.

                  For the purpose of calculating Net Sales, the Parties
recognize and agree that: (A) retroactive price adjustments will be recorded as
a deduction to derive Net Sales after the deduction is issued to the customers
upon written notification (including through electronic means) from the customer
of the amount of Product on their shelves, but only to the extent of an actual
decrease in the net market price of Product to that customer by Teva, Impax,
Andrx or their respective Affiliates, as the case may be (and, for purposes of
clarification, the retroactive price adjustment is not intended to be an
estimate of what is on the customers' shelves or an estimate in anticipation of
a potential decrease in the net market price of the Product); and (B) the
Distribution Margin shall not be included in Andrx's Net Sales, provided, that
the terms of the sale of the Products from Andrx to its distributor Affiliates
are on an arms-length basis.

                  (hh) "Operating Expenses" shall mean, on a Product-by-Product
basis, [xxxx]* percent [xxxx]* of the Net Sales for each of the Products sold by
Impax and/or Teva or Andrx and/or its Affiliate, as applicable, on an
arms-length basis to third parties in the Territory as a contribution towards
selling, marketing, administrative, shipping, bad debt, record keeping, report
preparation, and all other selling, general and administrative items incurred.

                  (ii) "Person" shall mean any individual, partnership,
association, corporation, limited liability company, trust, or other legal
person or entity.

                  (jj) "Preemption" shall mean that commercial quantities of any
Competing Product manufactured by GlaxoSmithKline p.l.c. or its Affiliates have
been received by a significant portion of the potential customer base at least
one business day prior to the date that Impax receives Final Approval for any
Product. For purposes of this definition, a "significant portion of the
potential customer base" shall be deemed to exist if at least three (3) of the
following customers have received Product: Albertsons, AmeriSource Bergen,
Cardinal, CVS, Eckerds, Kroger/Peyton, McKesson, RiteAid, Walgreens and Walmart.






                                        6

*Filed under application for confidential treatment.

<PAGE>


                                                          CONFIDENTIAL TREATMENT


                  (kk) "Product(s)" shall mean each of the following finished
pharmaceutical products for the prescription drug marketplace: (1) bupropion ER,
100 mg strength and (2) bupropion ER, 150 mg strength, but only with respect to
products that are bioequivalent to Wellbutrin(R) SR and/or Zyban(R).

                  (ll) "Product Waiver" shall mean either an Exclusivity
Transfer or a Relinquishment.

                  (mm) "Ready Date" shall mean the date by which Impax (i) has
received Tentative Approval for the Products (provided that, to the knowledge of
Impax at such time, aside from the time required for FDA to issue Final
Approvals of the Products, there is nothing that is likely to delay or
jeopardize Impax's ability to obtain such Final Approvals (assuming Andrx
effects Exclusivity Transfers and/or Relinquishments with respect to such
Products in accordance with this Agreement), (ii) has manufactured Launch
Quantities of the Products and believes that it will be able to continue to
manufacture commercial quantities of the Products for Marketing during the Andrx
Margin Period, and (iii) has determined, as of such time, that it is willing to
launch the Products in the event Andrx Transfers Exclusivity and/or Relinquishes
its First To File Exclusivity rights with respect to the Products in accordance
with this Agreement; provided, that, if Andrx has Retained Production for the
150 mg strength Product only in accordance with this Agreement prior to its
receipt of the Ready Date Notice, the Ready Date shall apply to the 100 mg
strength Product only.

                  (nn) "Ready Date Notice" shall have the meaning set forth in
Section 2.2(a).

                  (oo) "Regulatory Authority" shall mean any and all
governmental bodies, organizations and agencies whose approval is necessary to
develop, manufacture, import, use, and/or Market the Product in the Territory.

                  (pp) "Regulatory Documentation" shall mean all submissions to
Regulatory Authorities, including clinical studies, tests, and biostudies
relating to the Product, including, without limitation, all ANDAs, 505(b)(2)
applications, and DMFs as well as all correspondence with Regulatory Authorities
(registration and licenses, regulatory drug lists, advertising and promotion
documents), adverse event files, complaint files, manufacturing records and
inspection reports.

                  (qq) "Relinquishment" shall have the meaning as set forth in
Section 2.2(c).

                  (rr) "Retain Production" shall have the meaning set forth in
Section 2.3(a).

                  (ss) "Specifications" shall mean, for a particular Product,
the agreed specifications, methods and processes of the Product as contained in
the applicable Approval for that Product.

                  (tt) "Tentative Approval" shall mean, with respect to any
Product, the tentative FDA Approval of the ANDA of Impax with respect to such
Product.

                  (uu) "Territory" shall mean the United States of America and
its territories, districts and possessions.




                                       7

*Filed under application for confidential treatment.
<PAGE>


                                                          CONFIDENTIAL TREATMENT


                  (vv) "U.S. GAAP" shall mean generally accepted accounting
principles in the United States, as consistently applied by the reporting
entity.

                  Section 1.4. Agreement with Respect to Each Product. Except as
otherwise provided herein, the Parties acknowledge and agree that this Agreement
shall apply to each Product individually and that the Parties shall be entitled
to exercise their rights under this Agreement with respect to each Product
separately.



                                   ARTICLE II.
                                 PRINCIPAL TERMS

                  Section 2.1. Pre-Launch Manufacturing.

                  (a) As soon as reasonably practicable following the date
hereof, Impax shall commence to manufacture the Products in order to supply to
Teva and its Affiliates Launch Quantities of the Products. Andrx shall pay to
Impax [xxxx]* of the Cost of Materials of such Launch Quantities (including API
purchased pursuant to Section 2.1(b)) within [xxxx]* days of written request by
Impax and the provision of reasonable documentation of Impax's payment of such
Cost of Materials. Subject to the provisions of Section 2.3 hereof, within
[xxxx]* days following the initial Impax Launch Date, Impax shall reimburse
Andrx for such Cost of Materials relating to such Product paid by Andrx.

                  (b) During the term of this Agreement, Andrx shall use
commercially reasonable efforts to cause Interchem Corporation and Erregierre
S.p.A. (collectively, the "Supplier") to supply the API necessary for the
manufacture of the Products (and shall assign or otherwise allow Impax to
enforce Andrx's rights and remedies with respect to any supply of API sent to
Impax that Andrx facilitated pursuant to this section, pursuant to an assignment
substantially in the form attached hereto as Exhibit A), as may be requested
from time to time in writing by Impax. After sufficient API has been acquired
for the manufacture of Launch Quantities of the Products, Impax and Teva each
agrees to pay to Andrx [xxxx]* of the actual price for each such order before
the date Andrx is required to pay Supplier for such API, as reflected by
appropriate documentation supplied by Andrx. In connection with all such orders
and deliveries, Teva and Impax hereby acknowledge and agree that Andrx has
provided no representation or warranty to Impax or Teva with respect to the
quality or timely delivery of such API by the Supplier. The foregoing obligation
shall cease at the end of the Andrx Margin Period, and shall not prevent Andrx
from using API provided by Supplier that is not invoiced to Impax and Teva for
its own use.

                  Section 2.2. Ready Date Notice; Exclusivity Transfer.

                  (a) Within five (5) days following the Ready Date, Impax shall
notify Andrx in writing that it has satisfied the criteria for the Ready Date
(the "Ready Date Notice").

                  (b) Following receipt of the Ready Date Notice and except if
Andrx Retains Production pursuant to Section 2.3 hereof, Andrx shall, subject to
Section 2.2(c) hereof, take all steps necessary to promptly effect the
Exclusivity Transfer with respect to the Product(s) that are the subject of the





                                        8

*Filed under application for confidential treatment.



<PAGE>

                                                          CONFIDENTIAL TREATMENT


Ready Date Notice, including, without limitation, by (1) obtaining Final
Approval for such Product(s), (2) making a commercial sale of such Product(s) to
an unrelated third party in an arms-length transaction in the Territory for the
sole purpose of effecting the Exclusivity Transfer of such Product(s) and (3)
delivering the letter substantially in the form attached hereto as Exhibit B
(the "Exclusivity Transfer Letter") or such other version of that letter that
FDA advises it would prefer, to the FDA, with copies to Impax and Teva.

                  (c) Within five (5) days following Andrx's receipt of the
Ready Date Notice, Andrx will notify Impax and Teva in writing whether it
believes that it will be able to effect the Exclusivity Transfer(s) and, if so,
when it believes such Exclusivity Transfer(s) are likely to be effected. Andrx
further agrees to promptly notify Impax and Teva in writing of any material
changes from the information provided in such initial notice. If the Exclusivity
Transfer(s) relating to such Product(s) are not effected within thirty (30) days
following Andrx's receipt of the Ready Date Notice or if Andrx notifies Impax
and Teva that it does not expect to be able to effect the Exclusivity
Transfer(s), Andrx will immediately relinquish its First to File Exclusivity
rights relating to such Product(s) (the "Relinquishment") by delivering the
letter substantially in the form attached hereto as Exhibit C (the
"Relinquishment Letter") or such other version of that letter that FDA advises
it would prefer, to the FDA, with copies to Impax and Teva. After the
Exclusivity Transfer(s) are effected or the Relinquishment Letter is delivered
to the FDA, Impax shall take all steps necessary to receive Final Approval of
the Product(s) and launch the Product(s) as soon as reasonably practicable
thereafter.

                  (d) During the period commencing on the Impax Launch Date with
respect to any Product and ending on the earlier of (i) the two year anniversary
thereof and (ii) the date Andrx is able to Market such Product of its own, Teva
hereby agrees to sell a portion of its supply of such Product to Anda, Inc., an
Affiliate of Andrx, with comparable quantities, incentives, pricing and terms
that are equivalent to the most favorable terms given by Teva to any wholesaler.

                  Section 2.3. Option to Retain Production.

                  (a) Notwithstanding anything set forth in Section 2.2 hereof,
prior to Andrx's receipt of the Ready Date Notice or on or prior to the fifth
business day following Andrx's receipt of the Ready Date Notice, Andrx may elect
to manufacture and Market its own Products ("Retain Production"), in lieu of
effecting the Exclusivity Transfer(s) and/or Relinquishment pursuant to such
Section 2.2, by (1) notifying Impax and Teva of its bona fide intent to
manufacture and Market its own Product(s), (2) using commercially reasonable
efforts to commence commercial sales of such Product(s) to an unrelated third
party within the Territory within a reasonable time, not to exceed a period of
six months from the date of such notice, and (3) actually commencing such
commercial sales of such Product(s) by the end of such six-month period;
provided, that Andrx may Retain Production only with respect to both Products or
with respect to the 150 mg strength Product only, but not with respect to the
100 mg strength Product only. In the event Andrx is unable to commercially sell
its Product(s) to an unrelated third party within the Territory in the foregoing
six-month period, Andrx shall immediately effect an Exclusivity Transfer with
respect to the Product(s) or, if it is not possible to effect an Exclusivity
Transfer with respect to the Product(s) within a fifteen (15) day period (or






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                                                          CONFIDENTIAL TREATMENT

such longer period as Teva and Impax may notify Andrx), immediately effect a
Relinquishment with respect to the Product(s), and Andrx shall no longer have
the ability to Retain Production. Notwithstanding anything to the contrary in
Section 8.1 hereof, Force Majeure shall not apply to such six-month deadline to
commence commercial sales of the Products pursuant to this Section 2.3(a).

                  (b) If Andrx elects to Retain Production pursuant to this
Section 2.3, Andrx shall, within ten (10) days of notice from Impax (which
notice shall not be sent more often than monthly), reimburse Impax and Teva for
their share of the Manufacturing Costs incurred relating to the Products that
will not otherwise be able to be sold by Teva (provided Teva uses commercially
reasonable efforts to sell such Product in the ordinary course), including the
cost of destruction (as evidenced by proof of destruction), but only to the
extent such Manufacturing Costs (i) were not previously paid by Andrx pursuant
to Section 2.1(a), (ii) do not include Impax's scale-up and validation costs or
costs related to Product that did not or would not meet all of the applicable
specifications or otherwise would not be suitable for commercial sale, and (iii)
may include depreciation but not any other Manufacturing Costs that are non-cash
in nature. Prior to sending Product for destruction, Impax/Teva shall notify
Andrx of the Product to be destroyed, including the reason for destruction and
expiration date of the Product. Andrx shall have the right to raise reasonable
objections to such destruction if such Product is commercially saleable.

                  (c) If Andrx Retains Production pursuant to this Section 2.3,
the provisions of this Agreement, other than this Section 2.3, Sections 2.4(b),
2.6, 2.7, 2.8, 2.9, 3.1, 4.2, 4.4, 5.1, 5.4, 5.5 and 5.6 and Articles VI and
VIII (and the related defined terms contained in Article I), shall terminate and
be of no further force and effect with respect to the Product(s) for which Andrx
Retained Production. In such event, Impax shall not be required to reimburse
Andrx for its share of the API or the Cost of Materials pursuant to Section
2.1(a), until such time as the amount that Andrx is required to pay Impax and
Teva pursuant to Section 2.3(b) is determined, and at such time the amounts owed
shall be reconciled and promptly paid.

                  Section 2.4. Marketing Efforts.

                  (a) During the period commencing on the Impax Launch Date of a
Product, and until the six month anniversary of such date (such period, the
"Andrx Margin Period"), unless Andrx has effected an Exclusivity Transfer or
Relinquishment with respect to the 100 mg strength Product only, Teva, pursuant
to the Strategic Alliance Agreement, shall use its commercially reasonable
efforts (utilizing its marketing, distribution and management systems) to
develop a market for and maximize the sale of such Product in the Territory,
such effort to be no less than those efforts used by Teva in relation to its
other products. Impax and Teva shall have the full right at all times to
authorize any other Person to manufacture the Products.

                  (b) During the period commencing on the Andrx Launch Date of a
Product pursuant to Section 2.3 and until the six month anniversary of such date
(such period, the "Impax Margin Period"), Andrx shall use its commercially
reasonable efforts (utilizing its marketing, distribution and management
systems) to develop a market for and maximize the sale of such Product in the
Territory, such effort to be no less than those efforts used by Andrx in
relation to its other products. Andrx shall have the full right at all times to
authorize any other Person to manufacture the Products.







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                  Section 2.5. Andrx Margin Payments and Additional Payments.

                  (a) Within thirty (30) days following each Calendar Quarter
during the Andrx Margin Period, Teva shall (i) compute and report to Andrx and
Impax in a mutually acceptable format and detail in US $ and units the Net
Sales, Manufacturing Costs, Operating Expenses, Contract Margin and Andrx Margin
for each Product sold in the Territory by Impax, Teva and/or their Affiliates
during that Calendar Quarter within the Andrx Margin Period, and (ii) pay Andrx
the amount of the Andrx Margin with respect to the Andrx Margin Period, as
reflected in such report, and any Additional Payment, on or before the date such
report is required to be provided. Within ten (10) days following each of the
three reporting months (comprised of a four or five week period in a Calendar
Quarter, in accordance with Teva's financial reporting), Teva shall provide
Andrx with a report with reasonable detail in US $ and units setting forth the
Net Sales, Manufacturing Costs, Operating Expenses, Contract Margin and Andrx
Margin for each Product sold in the Territory by Impax, Teva and/or their
Affiliates during such month. In addition to such report, the chief financial
officer of Teva or its Affiliate, Teva Pharmaceuticals U.S.A., Inc., shall
provide Andrx with a certification (in a form substantially similar to that
attached in Exhibit D), that all information included in such report is complete
and accurate, to the best of his knowledge and belief. Teva shall be entitled to
rely on information provided to it by Impax with respect to Manufacturing Costs.

                  (b) Impax and Teva shall have the sole and exclusive right to
determine all terms and conditions of sale of the Products to their customers.

                  (c) Impax and Teva shall each keep complete and accurate
records and books of account containing all information required for the
computation and verification of the Net Sales, Manufacturing Costs and Contract
Margin. Each of Impax and Teva further agrees that, at the request of Andrx, it
will permit one or more firms of independent accountants selected by Andrx,
except any as to whom Impax or Teva reasonably objects, to have access upon
reasonable notice and during ordinary working hours to such records as may be
necessary to audit, with respect to any payment report period ending prior to
such request, the correctness of any report or payment made under this
Agreement, or to obtain information as to the payments due for any such period
in the case of failure of Impax or Teva to report or make payment pursuant to
the terms of this Agreement. Such accountant shall not disclose to Andrx any
information relating to the business of Impax or Teva except that which is
necessary to inform Andrx of:

                      (i) the accuracy or inaccuracy of Impax's or Teva's
         reports and payments;

                      (ii) compliance or non-compliance by Impax or Teva with
         the terms and conditions of this Agreement; and

                      (iii) the extent of any such inaccuracy or non-compliance.

         In the event that any such inspection reveals a deficiency in excess of
[xxxx]* of a payment with respect to a period covered by the inspection
(provided that the deficiency is at least [xxxx]*), Impax or Teva, as
applicable, shall




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                                                          CONFIDENTIAL TREATMENT

promptly pay Andrx, the deficiency, plus interest thereon at the prime rate (as
reported in the WALL STREET JOURNAL) per annum, and shall reimburse Andrx for
the reasonable and documented fees and expenses paid to such accountants, and
any accountants retained pursuant to Section 2.9 below, in connection with their
inspection of such period. If necessary to substantiate the deficiency claimed
to be revealed, the Parties shall utilize the procedure set forth in Section 2.9
below.

                  (d) The obligation of Impax and Teva to provide the reports
and to make the payments contemplated in this Section 2.5 and the right of Andrx
to conduct its audits pursuant to this Section 2.5 shall survive the termination
or expiration of this Agreement until the period ending one year after such
termination or expiration.

                  (e) If either Andrx, on the one hand, or Impax or Teva, on the
other hand, becomes Lawfully Able (as defined below) to Market a Product during
the period in which it is entitled to receive a percentage of the Contract
Margin from the sale of the other Party's Product, on a Product-by-Product basis
(the "Second Entrant"), the Parties shall at that time negotiate, in good faith,
an alternative payment arrangement (the "Alternative Payment") with respect to
the Viability Period (as defined below), in lieu of the Andrx Margin or the
Impax Margin, as applicable, that gives the Party the same economic value as
would have existed under this Agreement but for this Section 2.5(e) and assuming
the Second Entrant was not Lawfully Able to Market that Product, and that is not
directly based on the actual sales or actual net sales of such Product by Teva,
Impax or Andrx. "Lawfully Able" shall be the date (such date, or such later date
when the Product becomes commercially viable, if Andrx decides to and can
demonstrate to Impax and Teva's satisfaction that such Product is not yet
commercially viable, the "Viability Date") on which both of the following shall
exist: (1) the Party obtains Final Approval of the Product, and (2) the Party is
and otherwise remains able to lawfully Market the Product. The Party who becomes
Lawfully Able shall give prompt Notice of that fact to the other Parties (the
"Viability Notice Date"). For the period (the "Viability Period") commencing on
the Viability Date through and including the end of the Andrx Margin Period or
the Impax Margin Period, as the case may be, the Parties shall continue to pay
each other, on a quarterly basis, at a monthly rate equal to 100% of the amounts
paid in the full Calendar Month immediately preceding the Viability Date,
subject to retroactive adjustment and reconciliation upon agreement or final
determination of the Alternative Payment.

                  (f) If the Parties are unable to reach agreement as to the
Alternative Payment within fifteen days of the Viability Notice Date, any Party
shall have the right, exercisable by written notice to the other Parties, to
invoke the arbitration procedures set forth in this Section 2.5(f), as follows:

                      (1) Within 10 days after the Viability Notice Date, Andrx,
         on the one hand, and Teva and Impax jointly, on the other hand, shall
         exchange proposed good-faith Alternative Payment amounts ("initial
         exchange"), provided that the number, once exchanged, may only be
         changed thereafter in a manner that moves that Party's number closer to
         the other Party's number. At the time of said initial exchange, each
         Party shall provide the other Party with all reasonable data and
         information relevant to its proposed Alternative Payment.






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                                                          CONFIDENTIAL TREATMENT

                           (2) Any dispute shall thereafter be submitted for
         expedited determination to a panel comprised of three (3) arbitrators
         having expertise in the determination of amounts similar to the
         Alternative Payment. Andrx, on the one hand, and Teva and Impax,
         jointly on the other hand, shall each select one arbitrator. The
         arbitrators shall then select the third arbitrator. The arbitrators
         selected by the Parties shall be selected within twenty (20) days of
         the Viability Notice Date. The arbitrators shall then select the third
         arbitrator within ten (10) days thereafter. The parties shall use
         commercially reasonable efforts to expedite resolution of the
         arbitration.

                           (3) Andrx, on the one hand, and Teva and Impax,
         jointly on the other hand, shall each submit to the arbitrators its
         proposed Alternative Payment amount. Each Party shall inform the other
         Parties of its proposed Alternative Payment amount at the same time,
         subject to the proviso in subsection (f)(1) above. At the time of
         submission of any proposed Alternative Payment to the arbitrators, such
         Party shall provide the other Party with any data and information not
         previously provided to the other Party relevant to the issue of
         resolving the proposed Alternative Payment, and, unless otherwise
         agreed by the Parties, there shall be no additional changes in each
         Party's proposed Alternative Payment after the 10th day following the
         date set by the arbitrators for the completion of any information
         exchange. The arbitrators shall make their own joint valuation of the
         Alternative Payment amount in accordance with the preceding Section
         2.5(e) and shall determine the final Alternative Payment as between the
         two proposed Alternative Payments the one that is closest to amount
         they determined. The authority of the arbitrators shall be limited
         solely to a choice between the two proposed Alternative Payments that
         are submitted to them by a date they determine.

                           (4) The arbitration shall be held in New York, New
         York at such place as may be agreed upon by the Parties. The
         arbitrators shall have sole discretion with regard to the admissibility
         of any evidence and all other matters relating to the conduct of the
         arbitration. The arbitrators shall, in rendering their decision, apply
         the substantive laws of the New York (regardless of its or any other
         jurisdiction's choice of law principles). The decision of the
         arbitrators shall be final and not appealable, except in the case of
         fraud or bad faith, or misapplication of the substantive laws of New
         York on the part of the arbitrators or any Party to the arbitration
         proceeding in connection with the conduct of such proceedings.

                           (5) The arbitrators shall determine the proportion in
         which the Parties shall pay the costs and arbitrator fees of the
         arbitration, and each Party shall pay its own costs (including, without
         limitation, reasonable attorney's fees) and expenses in connection with
         such arbitration.

                           (6) The arbitration proceeding shall be confidential
         and, except as required by applicable law, neither Party shall make (or
         instruct the arbitrators to make) any public announcement with respect
         to the proceedings or decision of the arbitrator without prior written
         consent of the other Party. The existence of any dispute submitted for
         arbitration, and the award of the arbitrator, shall be kept in
         confidence by the Parties and the arbitrators, except as required in
         connection with the enforcement of such award or as otherwise required
         by applicable law.







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                                                          CONFIDENTIAL TREATMENT

                           (7) Promptly following the final determination by the
         arbitrators of the Alternative Payment pursuant to this Section 2.5(f),
         such amount shall be reconciled with any amounts previously paid
         pursuant to Section 2.5(e). Any amounts owing as a result of such
         reconciliation shall be promptly paid, but in no event later than five
         (5) business days after such final determination.

                  Section 2.6. Impax Margin Payments.

                  (a) If Andrx Retains Production of any Product, then within
thirty (30) days following each Calendar Quarter ending during the Impax Margin
Period, Andrx shall compute and report to Impax and Teva in a mutually
acceptable format and detail in US $ and units the Net Sales, Manufacturing
Costs, Operating Expenses, Contract Margin and Impax Margin for each Product
sold in the Territory by Andrx and/or its Affiliates during the Calendar Quarter
within the Impax Margin Period, and (ii) pay Impax the amount of the Impax
Margin reflected in such report, on or before the date such report is required
to be provided. Within ten (10) days following each calendar month, Andrx shall
provide Impax and Teva with a report with reasonable detail in US $ and units
setting forth the Net Sales, Manufacturing Costs, Operating Expenses, Contract
Margin and Impax Margin for each Product sold in the Territory by Andrx and/or
its Affiliates during such month. In addition to such report, Andrx's Chief
Financial Officer shall provide Impax and Teva with a certification (in a form
substantially similar to that attached in Exhibit D), that all information
included in such report is complete and accurate, to the best of his knowledge
and belief.

                  (b) Andrx shall have the sole and exclusive right to determine
all terms and conditions of sale of the Products to its customers.

                  (c) Andrx shall keep complete and accurate records and books
of account containing all information required for the computation and
verification of the Net Sales, Manufacturing Costs and Contract Margin. Andrx
further agrees that, at the request of Impax or Teva, it will permit one or more
firms of independent accountants selected by Impax or Teva, except any to whom
Andrx reasonably objects, to have access upon reasonable notice and during
ordinary working hours to such records as may be necessary to audit, with
respect to any payment report period ending prior to such request, the
correctness of any report or payment made under this Agreement, or to obtain
information as to the payments due for any such period in the case of failure of
Andrx to report or make payment pursuant to the terms of this Agreement. Such
accountant shall not disclose to Impax or Teva any information relating to the
business of Andrx except that which is necessary to inform Impax of:

                  (i) the accuracy or inaccuracy of Andrx's reports and
         payments;

                  (ii) compliance or non-compliance by Andrx with the terms and
         conditions of this Agreement; and

                  (iii) the extent of any such inaccuracy or non-compliance.

         In the event that any such inspection reveals a deficiency in excess of
[xxxx]* of a payment with respect to a period covered by the inspection
(provided that the deficiency is at least [xxxx]*), Andrx shall promptly pay
Impax or






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                                                          CONFIDENTIAL TREATMENT

Teva, as applicable, the deficiency, plus interest thereon at the prime rate (as
reported in the WALL STREET JOURNAL) per annum, and shall reimburse Impax or
Teva, as applicable, for the reasonable and documented fees and expenses paid to
such accountants, and any accountants retained pursuant to Section 2.9 below, in
connection with their inspection of such period. If necessary to substantiate
the deficiency claimed to be revealed, the Parties shall utilize the procedure
set forth in Section 2.9 below.

         (d) If, after Retaining Production pursuant to Section 2.3, Andrx
transfers its First to File Exclusivity Rights to a Person other than Teva and
Impax in accordance with this Agreement, then Andrx shall pay Impax the Impax
Margin in accordance with this Section 2.6, which Impax Margin shall be
calculated based on the Contract Margin and related definitions of such other
Person rather than Andrx. As a condition to any such transfer, Andrx will ensure
that Andrx provides, or such other Person agrees to provide, Teva and Impax with
the rights set forth in Section 2.6(a), (c) and (e) and Sections 2.7, 2.8 and
2.9 hereof.

         (e) The obligation of Andrx to provide the reports and to make the
payments contemplated in this Section 2.6 and the right of Impax and Teva to
conduct its audits pursuant to this Section 2.6 shall survive the termination or
expiration of this Agreement until the period ending one year after such
termination or expiration.

             Section 2.7. Shifting of Sales. From and after the initial
commercial sale of the Product in the Territory by either Impax or Andrx, that
Party will not knowingly engage in any material manufacturing or Marketing
practice outside the normal course of its business for the primary purpose of
shifting sales from one period, with respect to which either the Andrx Margin or
the Impax Margin is payable, into another period with respect to which there is
no margin sharing arrangement. The sole remedy of either Impax or Andrx in the
event of a breach of this Section 2.7 is to have reclassified any Net Sales that
have been so shifted; provided, however, that neither Andrx nor Impax shall have
any right to assert its rights or remedies under this Section 2.7 with respect
to any manufacturing or Marketing practice of the other that does not result in
a payment discrepancy of at least [xxxx]* Dollars ($[xxxx]*).

             Section 2.8. Accounting Reconciliation/True-Up. Within ninety (90)
days of the end of the Andrx Margin Period or the Impax Margin Period, as
applicable, Teva (in the case of the Andrx Margin Period) and Andrx (in the case
of the Impax Margin Period) shall provide the other Party with a revised
calculation of the Andrx Margin and the Impax Margin, respectively, based on the
actual (rather than accrued) amounts described in clauses (a) and (b) of the
definition of Net Sales. Any amounts owing by one Party to another as a result
of such recalculation shall be paid by the applicable Party within ten (10) days
of such report. All such calculations shall be made using the "first in, first
out" (FIFO) accounting concept, and not, among other things, any other
accounting utilized by the customers. These recalculations shall be subject to
review and dispute by the other Party pursuant to Sections 2.5, 2.6 and 2.9
hereof. Such revised calculation shall be accompanied by a certification (in a
form substantially similar to that attached in Exhibit D) of the chief financial
officer of Teva or its Affiliate, Teva Pharmaceuticals U.S.A., Inc. (in the case
of the Andrx Margin Period) or of the chief financial officer of Andrx (in the
case of the Impax Margin Period) that all information included in such report is
complete and accurate, to the best of his knowledge and belief.

             Section 2.9. Dispute Resolution.






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                                                          CONFIDENTIAL TREATMENT

         (a) Except as provided in Section 2.5(f), if the Parties are unable to
agree upon any amount payable under this Agreement, then they agree to retain a
mutually acceptable, nationally recognized independent certified public
accounting firm, which may not be any of the Parties' primary outside
accountants, to review the relevant books and records and to submit to the
Parties its written determination as to the amount in dispute and the basis for
its determination. The determination by the independent accounting firm will be
binding on the Parties absent manifest error.

         (b) Any accountants retained by any Party to review amounts pursuant to
this Agreement (including, without limitation, pursuant to Section 2.5, 2.6 or
2.9 hereof) shall be paid by such Party on a hourly or fixed (rather than on a
contingency) basis.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

         Section 3.1. Representations and Warranties of Andrx. Andrx hereby
represents and/or warrants and/or undertakes to Impax and Teva that:

         (a) it has the corporate power and authority to enter into this
Agreement and to perform its obligations hereunder;

         (b) neither the execution and delivery of this Agreement by Andrx nor
its performance hereunder conflicts with or results in any violation or breach
of, or constitute (with or without due notice or lapse of time or both) a
default under any of the terms or conditions of any note, bond, mortgage,
indenture, license, agreement or other instrument or obligation to which it or
any of its Affiliates is a party or by which it or any of its Affiliates or any
of their respective properties or assets may be bound, or to its best knowledge,
violate any statute, law, rule, regulation, writ, injunction, judgment, order or
decree of any court, administrative agency or governmental authority binding on
it or any of its Affiliates or any of their respective properties or assets,
excluding any such breaches or defaults that, individually and in the aggregate,
would not have a material adverse effect on its business or financial condition;

         (c) this Agreement is a legal, valid and binding agreement of Andrx
enforceable in accordance with its terms;

         (d) neither it nor any of its Affiliates have or will, directly or
indirectly, enter into any contract or any other transaction with any third
party or Affiliate that conflicts or derogates from its undertakings hereunder;

         (e) Andrx believes in good faith that, upon Final Approval by the FDA
of the applicable ANDA for each Product, Andrx is entitled to be awarded First
to File Exclusivity for each of the Products; and

         (f) neither it nor any of its Affiliates have been debarred or is
subject to debarment and will not use in any capacity, in connection with the
services to be performed under this Agreement, any Person who has been debarred
pursuant to Section 306 of the United States Food, Drug and Cosmetic Act.





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                                                          CONFIDENTIAL TREATMENT

         Section 3.2. Representations and Warranties of Impax. Impax hereby
represents and/or warrants and/or undertakes to Andrx and Teva that:

         (a) it has the corporate power and authority to enter into this
Agreement and to perform its obligations hereunder;

         (b) neither the execution and delivery of this Agreement by Impax nor
its performance hereunder conflicts with or results in any violation or breach
of, or constitute (with or without due notice or lapse of time or both) a
default under any of the terms or conditions of any note, bond, mortgage,
indenture, license, agreement or other instrument or obligation to which it is a
party or by which it or any of its properties or assets may be bound, or to its
best knowledge, violate any statute, law, rule, regulation, writ, injunction,
judgment, order or decree of any court, administrative agency or governmental
authority binding on it or any of its properties or assets, excluding any such
breaches or defaults that, individually and in the aggregate, would not have a
material adverse effect on its business or financial condition;

         (c) this Agreement is a legal, valid and binding agreement of Impax,
enforceable in accordance with its terms;

         (d) it has not and will not, directly or indirectly, enter into any
contract or any other transaction with any third party or Affiliate that
conflicts or derogates from its undertakings hereunder;

         (e) in the event and to the extent that Impax and/or its Affiliates
shall manufacture the Products, all such Products shall: (a) meet the applicable
Specifications at the time of shipment; (b) meet regulatory requirements of any
relevant Regulatory Authority in the Territory; (c) be manufactured, packaged,
tested, stored and shipped in accordance with applicable cGMPs, the Approvals
and Applicable Law; (d) not be adulterated or misbranded under the United States
Food, Drug and Cosmetic Act, as amended from time to time; and (e) be produced,
packaged, tested and stored in facilities that have been approved by the
applicable Regulatory Authority, to the extent required by Applicable Law;

         (f) in the event and to the extent that Impax and/or its Affiliates
shall manufacture the Products, Impax's and/or its Affiliates' manufacturing
facilities for such Products shall conform in all respects to Applicable Law
governing such facilities; and

         (g) neither it nor any of its Affiliates have been debarred or is
subject to debarment and will not use in any capacity, in connection with the
services to be performed under this Agreement, any Person who has been debarred
pursuant to Section 306 of the United States Food, Drug and Cosmetic Act, or who
is the subject of a conviction described in such section.

         Section 3.3. Representations and Warranties of Teva. Teva hereby
represents and/or warrants and/or undertakes to Andrx and Impax that:

         (a) it has the corporate power and authority to enter into this
Agreement and to perform its obligations hereunder;





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                                                          CONFIDENTIAL TREATMENT


         (b) neither the execution and delivery of this Agreement by Teva nor
its performance hereunder conflicts with or results in any violation or breach
of, or constitute (with or without due notice or lapse of time or both) a
default under any of the terms or conditions of any note, bond, mortgage,
indenture, license, agreement or other instrument or obligation to which it is a
party or by which it or any of its properties or assets may be bound, or to its
best knowledge, violate any statute, law, rule, regulation, writ, injunction,
judgment, order or decree of any court, administrative agency or governmental
authority binding on it or any of its properties or assets, excluding any such
breaches or defaults that, individually and in the aggregate, would not have a
material adverse effect on its business or financial condition;

         (c) this Agreement is a legal, valid and binding agreement of Teva,
enforceable in accordance with its terms;

         (d) it has not and will not, directly or indirectly, enter into any
contract or any other transaction with any third party or Affiliate that
conflicts or derogates from its undertakings hereunder; and

         (e) neither it nor any of its Affiliates have been debarred or is
subject to debarment and will not use in any capacity, in connection with the
services to be performed under this Agreement, any Person who has been debarred
pursuant to Section 306 of the United States Food, Drug and Cosmetic Act, or who
is the subject of a conviction described in such section.

         Section 3.4. No Other Representations. Except for the representations
and warranties of the Parties expressly set forth in this Agreement, no Party
makes any express or implied representation or warranty with respect to the
Products or otherwise, including, without limitation, regarding patent
infringement.

                                   ARTICLE IV.
                                    COVENANTS

         Section 4.1. Regulatory Filings. Within 10 business days following the
date hereof, each Party hereto shall file or cause to be filed with the Federal
Trade Commission and the Department of Justice any notifications required to be
filed under the HSR Act, and the rules and regulations promulgated thereunder
with respect to the Exclusivity Transfer contemplated hereby. Such Parties will
use all commercially reasonable efforts to coordinate such filings and any
responses thereto, to make such filings promptly and to respond promptly to any
requests for additional information made by either of such agencies. The
Exclusivity Transfers contemplated under this Agreement shall not be effected
unless and until all applicable waiting periods under the HSR Act shall have
expired or been terminated or the Parties agree in writing that it is not
necessary ("HSR Clearance"). If the HSR Clearance is not obtained prior to the
date of the Ready Date Notice, the period of time reflected in Section 2.3(a)(3)
shall be extended to nine months. The filing fees of such filings, if any, shall
be equally shared by Teva, Andrx and Impax. At the time the Parties make the
above filings pursuant to the HSR Act, they shall submit a copy of such filing,
including this Agreement, to the Health Care Division of the Bureau of
Competition of the Federal Trade Commission.




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                                                          CONFIDENTIAL TREATMENT

         Section 4.2. Cooperation. Each of the Parties shall use its
commercially reasonable efforts to take, or cause to be taken, all such further
actions and to do, or cause to be done, all things necessary, proper or
advisable to consummate and make effective as promptly as practicable the
transactions contemplated by this Agreement, including but not limited to, (i)
seeking Final Approval of their respective ANDAs for the Products as soon as
reasonably practicable; (ii) obtaining all consents from any Governmental Entity
and other third parties required for the consummation of transactions
contemplated by this Agreement, (iii) timely making all necessary filings under
the HSR Act and (iv) following delivery of a Product Waiver by Andrx to the FDA,
cooperate with the FDA so that it issues Final Approval of the Impax ANDA as
soon as reasonably practicable.

         Section 4.3. Transferability of Andrx ANDA. Andrx shall be free to
assign or transfer any Andrx ANDA for the Products provided that such assignment
or transfer of any such Andrx ANDA does not delay, in any significant respect,
the obtaining of a Final Approval of such Andrx ANDA. Upon an assignment of any
Andrx ANDA to a transferee ("Transferee"), as herein contemplated, such
Transferee shall, as a condition to such assignment or transfer, enter into a
certification with Teva and Impax pursuant to which it will agree to be bound by
and shall assume, observe, perform and satisfy all covenants, agreements,
restrictions, prohibitions, warranties and guarantees contained herein on the
part of Andrx as principal obligor and shall be entitled to all of the rights
and benefits of Andrx hereunder (and the Agreement shall be construed
accordingly); provided that no such assignment shall relieve Andrx of such
covenants, agreements, restrictions, prohibitions, warranties and guarantees
contained herein and Andrx shall thereupon become jointly and severally liable
with such Transferee for the observance, performance and satisfaction of same.
As a condition to any assignment or transfer, Andrx or the Transferee shall pay
Impax the Impax Margin in accordance with Section 2.6, which Impax Margin shall
be calculated based on the Contract Margin and related definitions of the
Transferee. Andrx will also ensure that Andrx provides, or such other Transferee
agrees to provide, Teva and Impax with the rights set forth in Section 2.6(a)
and (e) and Sections 2.7, 2.8 and 2.9 hereof.

         Section 4.4. Limited Remedies.

         (a) Except as otherwise set forth in the Strategic Alliance Agreement
as between Teva and Impax, the Parties hereto hereby covenant and agree that the
remedies provided for herein shall be the only remedies available under the law
with respect to any claim among the Parties arising under this Agreement or the
transactions contemplated hereby.

         (b) Except with respect to a willful breach of this Agreement by a
Party, such Party shall not be liable to any other Party for special, indirect,
incidental, consequential damages or lost profits, whether in contract,
warranty, negligence, tort, strict liability or otherwise, arising out of this
Agreement or the transactions contemplated hereby.


                                   ARTICLE V.
                        INDEMNIFICATION AND CONTRIBUTION

Section 5.1. Andrx Indemnification. Andrx covenants and agrees to indemnify,
defend and save Impax and its directors, officers, shareholders, employees,



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                                                          CONFIDENTIAL TREATMENT

servants and agents (collectively the "Impax Indemnitees") and Teva and its
directors, officers, shareholders, employees, servants and agents (collectively,
the "Teva Indemnitees") harmless from and against any and all losses,
liabilities, damages, costs and expenses, including reasonable attorney's fees
and disbursements (collectively, "Damages") in connection with any and all
suits, investigations, claims or demands by third parties resulting from or
arising out of Andrx's material breach of this Agreement.

         Section 5.2. Impax Indemnification. Impax covenants and agrees to
indemnify, defend and save Andrx and its directors, officers, shareholders,
employees, servants and agents (collectively the "Andrx Indemnitees") and the
Teva Indemnitees harmless from and against any Damages in connection with any
and all suits, investigations, claims or demands by third parties resulting from
or arising out of Impax's material breach of this Agreement.

         Section 5.3. Teva Indemnification. Teva covenants and agrees to
indemnify, defend and save Andrx Indemnitees and the Impax Indemnitees harmless
from and against any Damages in connection with any and all suits,
investigations, claims or demands by third parties resulting from or arising out
of Teva's material breach of this Agreement.

         Section 5.4. Other Indemnification. With respect to any third Person
claim, including, without limitation, any claim for patent infringement,
inducing infringement or product liability, in each case when Sections 5.1, 5.2
and 5.3 are not applicable, the Parties agree that they shall respectively be
responsible for Damages associated with the sale of Product(s) during either the
Andrx Margin Period or the Impax Margin Period, as applicable, whether through
contribution or indemnification, in proportion to their respective share of the
Contract Margins (including any division of profits between Impax and Teva
pursuant to the Strategic Alliance Agreement); provided that (i) any Damages
that are associated with the sale of Product(s) after the Andrx Margin Period or
the Impax Margin Period, as applicable, shall be exclusively borne by the Party
making such Product sale that gave rise to the liability for such Damages
(except that, in the case of Product sales by Impax or Teva, such Damages shall
be allocated pursuant to the Strategic Alliance Agreement), (ii) neither Impax
nor Teva shall be liable for any Damages that exceeds the cumulative Impax
Margin payments made to such Party under this Agreement, with respect to Damages
arising from liability that results from the sale of Product(s) by Andrx and/or
its Affiliates, (iii) if Impax or Teva incurs Damages arising from liability
that results from the sale of Product(s) by Andrx and/or its Affiliates in an
amount which exceeds the cumulative Impax Margin payments made to Impax and/or
Teva under this Agreement, Andrx shall indemnify, defend and hold harmless Impax
and Teva for any such excess Damages, (iv) Andrx shall not be liable for any
Damages that exceeds the cumulative Andrx Margin payments and Additional
Payments made to Andrx under this Agreement, with respect to Damages arising
from liability that results from the sale of Product(s) by Teva, Impax and/or
their Affiliates, and (v) if Andrx incurs Damages arising from liability that
results from the sale of Product(s) by Teva, Impax and/or their Affiliates in an
amount which exceeds the cumulative Andrx Margin payments and Additional
Payments made to Andrx under this Agreement, Impax and Teva shall jointly and
severally indemnify, defend and hold harmless Andrx for any such excess Damages
(but for which, as between Teva and Impax, shall be in accordance with the
Strategic Alliance Agreement). If any Damages result from a claim for product
liability for which Impax, Teva or Andrx has product liability insurance
covering such product, then this section shall only apply after any and all
recoveries actually received by such Party from such applicable product
liability insurance has been applied.



                                       20


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                                                          CONFIDENTIAL TREATMENT

         Section 5.5. Claims; Notification.

         (a) As soon as a Party becomes aware of the possibility of a claim
involving indemnification under this Article V, the indemnified Party shall give
the indemnifying Party prompt written notice in writing and shall permit the
indemnifying Party to have control over the defense of such claim or suit. The
indemnified Party agrees to provide all reasonable information and assistance to
the indemnifying Party in such defense. No such claims shall be settled other
than by the Party defending the same, and then only with the consent of the
other Party, which shall not be unreasonably withheld or delayed; provided,
however, that the indemnified Party shall have no obligation to consent to any
settlement of any such claim which imposes on the indemnified Party any
liability or obligation which cannot be assumed and performed in full by the
indemnifying Party.

         (b) As soon as any Party becomes aware of the possibility of a claim
involving contribution under Section 5.4, such Party shall notify the other
Parties and the Parties shall cooperate in the defense of such claim. Each of
the Parties shall provide all reasonable information and assistance to such
defense.

         Section 5.6. No Consequential Damages. Except in the event of and to
the extent of Damages awarded to a third party in connection with the
indemnification provisions set forth in Sections 5.1, 5.2, 5.3 or 5.4, above and
except with respect to a willful breach of this Agreement by a Party, such Party
shall not be liable to any other Party for special, indirect, incidental,
consequential damages or lost profits, whether in contract, warranty,
negligence, tort, strict liability or otherwise, arising out of the manufacture,
Marketing, distribution, sale or use of the Products.

                                   ARTICLE VI.
                                 CONFIDENTIALITY

         Section 6.1. General. Each of the Parties agrees that: (a) it will not
disclose any Confidential Information of the other to any third party at any
time during the Term without the prior written consent of the disclosing Party;
(b) it will not make use of any Confidential Information of the other Parties
for any purpose other than for the purposes set forth in, or in furtherance of
the transactions contemplated by this Agreement; and/or (c) it will use all
commercially reasonable efforts to prevent unauthorized publication or
disclosure by any person of such Confidential Information including requiring
its employees, consultants or agents to enter into similar confidentiality
agreements in relation to such Confidential Information.

         Section 6.2. Special Provisions Following Viability Date. In addition,
any information exchanged by the Parties following delivery of a Viability Date
Notice given pursuant to Section 2.5(e) and (f) shall be provided only to (1)(a)
the outside advisors (e.g. financial advisors, lawyers or accountants) of the
receiving Party and (b) officers of the receiving Party specifically approved by
the disclosing Party (not including sales and marketing personnel), if any,
which approval shall not be unreasonably withheld, and in each case of clauses




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                                                          CONFIDENTIAL TREATMENT

(a) and (b), who need to review such information in connection with the
determination of the Alternative Payment, and (2) the arbitrators designated
pursuant to Section 2.5(e). Such information shall be used by such persons
solely in connection with the determination of the Alternative Payment.

         Section 6.3. Disclosure Required by Law. Notwithstanding the foregoing,
each Party shall be permitted upon reasonable prior written notice to the other
Parties to disclose (1) Confidential Information to the FDA or if otherwise
required by Applicable Law, other applicable law or court order and (2) to any
Governmental Entity the tax treatment and tax structure of any transactions
entered into under this Agreement and all materials of any kind (including any
opinions or other tax analyses) that are provided to that Party relating to such
tax treatment and tax structure.

         Section 6.4. Return of Confidential Information. At the request of the
disclosing Party, all Confidential Information in any form will be returned to
the Party who disclosed the Confidential Information within thirty (30) days of
the termination or expiration of this Agreement, save for the retention of one
(1) copy of the Confidential Information by each receiving Party as a record of
the receiving Party's ongoing confidentiality obligations under this Agreement.

         Section 6.5. Publicity; Advertising. No Party shall use the name of any
other Party in any publicity or advertising nor, except as required by law or
court order, publicly disclose information related to this Agreement or the
terms and conditions hereof without the prior written consent of such other
Party.

         Section 6.6. Sole Property. Each of the Parties agrees that all
Confidential Information that it receives from the other Parties and/or its
Affiliates in connection with the Products is the sole property of the
disclosing Party and shall be used by it only in accordance with the terms and
provisions of this Agreement.

         Section 6.7. Effectiveness and Survival. This Article VI shall be in
effect (A) (i) if there is a Product Waiver, during the Andrx Margin Period and
(ii) if Andrx Retains Production, during the Impax Margin Period, and in each
case, for a period of five (5) years following the termination or expiration
thereof, and (B) otherwise, for a period of five (5) years following the date
hereof.

         Section 6.8. Intent. The Parties acknowledge that it is their intention
to limit the disclosure of Confidential Information hereunder to the Products
and matters directly related thereto.

                                  ARTICLE VII.
                                   TERMINATION

         Section 7.1. Termination. This Agreement may be terminated at any time:

         (a) by mutual written agreement of Andrx, Impax and Teva;



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                                                          CONFIDENTIAL TREATMENT

         (b) by Andrx if it has not received a Ready Date Notice by June 1, 2004
or by Impax or Teva, if Andrx has not effected a Relinquishment, Exclusivity
Transfer or Retained Production pursuant to Section 2.2 or 2.3, as applicable,
on or before July 1, 2004;

         (c) by Andrx, if Impax or Teva shall have materially breached any of
its representations, warranties, covenants or other agreements contained in this
Agreement, which are not cured or cannot be reasonably expected to be cured
within 30 days of notice of such breach by Andrx;

         (d) by Impax or Teva, if Andrx shall have materially breached any of
its representations, warranties, covenants or other agreements contained in this
Agreement, which are not cured or cannot be reasonably expected to be cured
within 30 days of notice of such breach by Impax or Teva;

         (e) by any Party if a court of competent jurisdiction or governmental,
regulatory or administrative agency or commission shall have issued a final and
nonappealable order, judgment or decree or taken any other action having the
effect of permanently restraining, enjoining or otherwise prohibiting the
transactions contemplated by this Agreement.

         Section 7.2. Effect of Termination.

         (a) In the event of the termination of this Agreement by Impax or Teva
pursuant to Section 7.1(d), Andrx shall, within ten (10) days of notice from
Impax or Teva, reimburse Impax and Teva for their Manufacturing Costs incurred
relating to the Products to the same extent as set forth in Section 2.3(b)
herein.

         (b) In the event of the termination of this Agreement by any Party
pursuant to Section 7.1(b), Andrx shall, within ten (10) days of notice from
Impax or Teva, reimburse Impax and Teva for their Manufacturing Costs incurred
relating to the Products to the same extent as set forth in Section 2.3(b)
herein.

         (c) In the event of the termination of this Agreement by Impax or Teva
pursuant to Section 7.1(b), notwithstanding Section 7.2(d) below, the obligation
of Andrx to pay the Impax Margin pursuant to Section 2.6 hereof and Andrx's
other obligations pursuant to Section 2.4(b) and 2.6 shall survive the
termination of this Agreement as if this Agreement had not been terminated.

         (d) Upon the termination of this Agreement by any Party pursuant to
Section 7.1, this Agreement shall forthwith become void as to such terminating
Party and there shall be no liability on the part of any Party hereto (or any
stockholder, director, officer, partner, employee, agent, consultant or
representative of such Party) to the Party that has terminated this Agreement,
except as set forth in this Section 7.2, provided, that nothing contained in
this Agreement shall relieve any Party from liability for any breach of this
Agreement, including, without limitation, the obligations of the breaching Party
or Parties hereto to pay the Impax Margin or Andrx Margin and Additional
Payments, as applicable; and provided, further, that this Section 7.2 and
Articles V and VI and Sections 4.4, 8.5, 8.6, 8.7, 8.8, 8.9, 8.10, 8.11, 8.12,
8.13, 8.14 and 8.15 shall survive termination of this Agreement by any Party.



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                                                          CONFIDENTIAL TREATMENT

                                  ARTICLE VIII.
                                  MISCELLANEOUS

         Section 8.1. Force Majeure.

         (a) No Party shall be liable for non-performance or delay in the
fulfillment of its obligations (other than payment obligations) when any such
non-performance or delay shall be occasioned by any unforeseeable cause beyond
the reasonable control of the Parties, as the case may be, including without
limitation, acts of God, fire, flood, earthquakes, explosions, sabotage,
strikes, or labor disturbances (regardless of the reasonableness of the demands
of the labor force), civil commotion, riots, military invasions, wars, failure
of utilities, failure of carriers, or any acts, restraints, requisitions,
regulations, or directives issued by a competent government authority ("Force
Majeure Events").

         (b) In the event that any Party is prevented from discharging its
obligations under this Agreement on account of a Force Majeure Event, such Party
shall notify the other Parties forthwith, and shall nevertheless make every
endeavor, in the utmost good faith, to discharge its said obligations, even if
in a partial or compromised manner.

         (c) Notwithstanding Section 8.1(a) hereof, if, as a result of a Force
Majeure Event (which shall include Product recalls and Product safety issues
which occurs as a result of events beyond the reasonable control of the
Parties), a Party does not Market a Product, the Andrx Margin Period (with
respect to a suspension of Marketing by Teva) and the Impax Margin Period (with
respect to a suspension of Marketing by Andrx), as applicable, shall be
suspended (such period when Marketing is suspended, the "Suspension Period"),
and no Additional Payments or other payments shall be required to be made with
respect to such period. When and if such Force Majeure Event shall end and the
Party has recommenced Marketing such Product, the Suspension Period shall be
added to the end of the Andrx Margin Period and the Impax Margin Period, as
applicable, and any remaining payment obligations shall resume.

         (d) This Section 8.1 shall not apply to such six-month deadline for
Andrx to commence commercial sales of the Products pursuant to this Section
2.3(a).

         Section 8.2. Amendments. The terms and provisions of this Agreement may
be modified or amended, or any of the provisions hereof waived, temporarily or
permanently, in a writing executed and delivered by the Parties hereto. No
waiver of any of the provisions of this Agreement shall be deemed to or shall
constitute a waiver of any other provision hereof (whether or not similar). No
delay on the part of any Party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof.

         Section 8.3. Press Releases; Disclosures. Any and all press releases,
publicity or other form of public written disclosures relating to this Agreement
shall be mutually agreed to by the Parties (the consent of a Party not to be
unreasonable withheld or unduly delayed and in any event a Party shall respond
within two (2) business days of receiving a request, failing which it shall be
deemed to have consented) including, if applicable, the time of release of such
public written disclosures as well as the content of such public written
disclosures. For releases or announcements required by applicable law, the Party





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                                                          CONFIDENTIAL TREATMENT

making the release or announcement shall, before making any such release or
announcement, afford the other Parties a reasonable opportunity to review and
comment. Any copy of this Agreement to be filed with the Securities and Exchange
Commission or any other Governmental Entity shall be redacted to the fullest
extent permitted by applicable law and to the reasonable satisfaction of the
Parties; provided, however, in the event that the Securities and Exchange
Commission or other Governmental Entity, as applicable, objects to the redaction
of any portion of this Agreement after the initial submission, the filing Party
shall inform the other Parties of the objections and shall in good faith respond
to the objections in an effort to limit the disclosure required by the
Securities and Exchange Commission or Governmental Entity, as applicable.

         Section 8.4. Suits; Litigation. In the event that there are any claims,
actions, demands or suits by a third party, attempting to invalidate this
Agreement in any manner whatsoever, Impax, Teva and Andrx hereto agree to
vigorously defend such claims, actions, demands or law suits and each of Impax,
Teva and Andrx shall bear its own legal cost in such defense and will cooperate
with each other in any such defense.

         Section 8.5. Payments in U.S. Dollars. All payments required to be paid
under this Agreement shall be made in lawful currency of the United States.

         Section 8.6. Governing Law. This Agreement shall be governed by and
interpreted in accordance with the laws of the State of New York without giving
effect to the principles of conflict of laws thereof.

         Section 8.7. Notices. Each notice, demand or other communication to be
given or made hereunder shall be made in writing and may be made by facsimile
transmission. Any notice, demand or other communication or document to be given,
made or delivered by one Party to another pursuant to this Agreement shall
(unless that Party has by prior notice specified another address or fax number)
be given, made or delivered to the other Parties addressed as follows:

         If to Andrx:              ANDRX PHARMACEUTICALS, LLC
                                   ANDRX PHARMACEUTICALS, INC.
                                   4955 Orange Drive
                                   Davie, FL 33314
                                   Attention: Scott Lodin, EVP & General Counsel
                                   Telephone: (954) 585-1751
                                   Facsimile: (954) 585-1723

         with a copy to:           ANDRX CORPORATION
                                   2915 Weston Road
                                   Weston, FL 33314
                                   Attention: [xxxx]*, SVP & CFO
                                   Telephone: (954) 217-4205
                                   Facsimile: (954) 217-4202

         If to Impax:              IMPAX LABORATORIES, INC.
                                   3735 Castor Avenue
                                   Philadelphia, PA 19124
                                   Attention:  Barry R. Edwards, Co-CEO
                                   Telephone: (215) 289-2220
                                   Facsimile: (215) 289-5932




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                                                          CONFIDENTIAL TREATMENT

         With copies to:           IMPAX LABORATORIES, INC.
                                   30831 Huntwood Avenue
                                   Haywood, California 94544
                                   Attention: Larry Hsu, Ph.D. President
                                   Telephone: (510) 471-3600
                                   Facsimile: (510) 471-3200

                                   Blank Rome Comisky & McCauley, LLP
                                   One Logan Square
                                   Philadelphia, PA 19103
                                   Attn: Frank Dehel
                                   Telephone: (215) 569-5500
                                   Facsimile: (215) 569-5555

                                   and to Teva, as per below.

         If to Teva:               TEVA PHARMACEUTICALS CURACAO N.V.
                                   Schotegatweg Oost 29 D
                                   Curacao, Netherlands Antilles
                                   Attention: General Manager
                                   Telephone: 599-9-736-6066
                                   Facsimile: 599-9-736-7066

         With copies to:           TEVA NORTH AMERICA
                                   1090 Horsham Road
                                   North Wales, Pennsylvania 19454
                                   Attention: Vice President and General Counsel
                                                   Teva North America
                                   Telephone: (215) 591-3000
                                   Facsimile: (215) 591-8813

                                   Willkie Farr & Gallagher
                                   787 Seventh Avenue
                                   New York, New York 10019
                                   Attention: Peter H. Jakes
                                   Telephone: (212) 728-8000
                                   Facsimile: (212) 728-8111

                                   and to Impax as per the above.

Any notice, demand or other communication so addressed to any Party to this
Agreement shall be deemed to have been delivered (i) in the case of any notice,
demand or other communication made be facsimile transmission, when dispatched
with confirmed answer back or (ii) in all other cases upon receipt.





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                                                          CONFIDENTIAL TREATMENT

         Section 8.8. Entire Agreement. Except for the Strategic Alliance
Agreement between Teva and Impax, this Agreement embodies the entire agreement
between the Parties hereto with respect to the subject matter provided herein.

         Section 8.9. Independent Contractor. Nothing herein shall constitute
the Parties hereto as principal and agent or as partners or joint venturers.
Each Party hereto is an independent contractor with respect to the other.

         Section 8.10. Successors and Assigns. The terms and provisions hereof
shall inure to the benefit of, and be binding upon, Andrx, Impax, Teva and their
respective successors and permitted assigns. Neither Andrx, Impax or Teva shall
assign this Agreement or any part of it to any third party without the prior
written consent of the other Parties; provided, however, that Teva may, without
obtaining the consent of Impax or Andrx, assign this Agreement or delegate any
of its rights or obligations hereunder to any of its Affiliates, provided that
Teva agrees to remain primarily liable for the full and timely performance by
such Affiliate of all its obligations hereunder.

         Section 8.11. Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the Parties hereby waive any provision of law, which renders
any provision of this Agreement prohibited or unenforceable in any respect.
Should any provision of this Agreement be so held to be unenforceable, such
provision, if permitted by law, shall be considered to have been superseded by a
legally permissible and enforceable clause which corresponds most closely to the
intent of the Parties as evidenced by the provision held to be unenforceable.

         Section 8.12. Submission to Jurisdiction. Each of Andrx, Impax and Teva
hereby irrevocably and unconditionally consents to submit to the exclusive
jurisdiction of the Federal Courts of the Southern District of New York or the
state courts of the Supreme Court, New York County for any litigation arising
out of or relating to this Agreement and the transactions contemplated hereby
(and agrees not to commence any litigation relating hereto or thereto except in
such courts), and further agrees that service of any process, summons, notice or
document by U.S. registered mail to its respective address set forth in this
Agreement shall be effective service of process for any litigation brought
against it in any such court. Each of the Parties hereto hereby irrevocably and
unconditionally waives any objection to the laying of venue of any litigation
arising out of this Agreement or the transactions contemplated hereby in the
courts of the Southern District of the State of New York or the United States of
America, in each case located in the New York County, hereby further irrevocably
and unconditionally waives and agrees not to plead or claim in any such court
that any such litigation brought in any such court has been brought in an
inconvenient forum.



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                                                          CONFIDENTIAL TREATMENT

         Section 8.13. Waiver of Jury Trial. ANDRX, IMPAX AND TEVA HEREBY WAIVE
ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, PROCEEDING
OR LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH
THIS AGREEMENT.

         Section 8.14. Third Party Beneficiaries. No section of this Agreement
is intended to confer upon any Person other than the Parties any rights or
remedies hereunder.

         Section 8.15. Counterparts. This Agreement may be executed in one or
more counterparts, each of which shall be deemed an original but all of which,
taken together, shall constitute one and the same instrument. This Agreement may
be delivered by facsimile transmission and receipt of facsimile copy of any
Party's signature shall be considered to be receipt of an original copy thereof;
provided that any Party executing this Agreement by facsimile shall, as soon as
practicable following execution of this Agreement, provide an originally
executed counterpart of this Agreement to the other Parties.

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                                                          CONFIDENTIAL TREATMENT


         IN WITNESS WHEREOF, each of the Parties has executed this Agreement as
of the date first written above.

                           ANDRX PHARMACEUTICALS, LLC




                           By:  ________________________________________________
                                Name:
                                Title:

                           ANDRX PHARMACEUTICALS, INC.




                            By:  _______________________________________________
                                 Name:
                                 Title:

                            IMPAX LABORATORIES, INC.




                           By:  ________________________________________________
                                Name:
                                Title:

                           TEVA PHARMACEUTICALS CURACAO N.V.




                           By:  ________________________________________________
                                Name:
                                Title:



                           By:  ________________________________________________
                                Name:
                                Title:






*Filed under application for confidential treatment.