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| (a) |  "Losses"      means any and all damages, judgments, liabilities, assessments, fines,      penalties, amounts paid in settlement, fees and costs (including attorneys      fees and costs) or other losses. |
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| (b) | "Management      Agreement" means any advisory, management, monitoring or other      similar or equivalent agreement. |
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| (c) | "Fund" means any      investment fund formed or managed by TPG or any TPG Affiliate or for which      TPG or any TPG Affiliate serves as an investment adviser including without      limitation TPG Partners V, L.P., and any other partnership, limited      liability company or other legal entity that is a TPG Affiliate which      directly or indirectly owns equity securities of the Company or any other      Axcan Company. |
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| (d) | "Organizational      Document" means an entity's charter, by-laws, partnership      agreement, limited liability company agreement, operating agreement,      indemnification agreement, or other similar or equivalent agreement or      document. |
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| (e) | "TPG Affiliate"      means any entity that, directly or indirectly, (i) is controlled by, (ii)      controls or (iii) is under common control with, TPG; provided that, under      no circumstances shall any portfolio company of TPG (including any Axcan      Company) be deemed a TPG Affiliatehereunder. |
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| 4. | Miscellaneous. |
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| (a) | This      Agreement may be amended, modified, extended or terminated (and the      provisions hereof may be waived) only by a written agreement specifically      identified as such and signed by TPG and the relevant Axcan      Company.  No oral amendment, modification or waiver of this      Agreement shall be effective. |
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| (b) | An      Indemnitee's rights under this Agreement and any Axcan Indemnity      Undertaking that gives rise to indemnification and/or advancement rights      are present contractual rights that shall fully vest upon any Indemnitee's      first service as a director, officer, board observer, fiduciary, partner,      trustee, manager, employee, agent or functional or foreign equivalent of      any of the foregoing of any of the Axcan Companies.  No      amendment, alteration or repeal of this Agreement or any other such      agreement or document or of any provision hereof or thereof validly      effected shall limit or restrict any right of Indemnitee under this      Agreement or such agreement or document in respect of any act, omission or      statement of such Indemnitee occurring prior to such amendment, alteration      or repeal. No right under this Agreement may be exercised by or with      respect to an Indemnitee after a period ending on the sixth (6th)      anniversary of the date such Indemnitee ceased being a director, officer,      board observer, fiduciary, partner, trustee, manager, employee, agent or      functional or foreign equivalent of any of the foregoing of any of the      Axcan Companies |
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| (c) | Nothing      in this Agreement shall be construed to require:  (i) TPG, any      TPG Affiliate or any other person or entity to continue to provide      management, advisory, consulting or other services, or (ii) any TPG      Designee to continue to serve as a director, officer or agent of any Axcan      Company (or in any other capacity).  No Indemnitee's rights      hereunder shall be limited or impaired in any way if such Indemnitee      ceases, for any reason, to serve or provide services to any Axcan      Company. |
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| (d) | To      the extent permitted by applicable choice of law principles, this      Agreement and all claims arising out of or based upon this Agreement or      relating to the subject matter hereof shall be governed by and construed      in accordance with the substantive laws of the State of Delaware without      giving effect to any choice or conflict of law principles or rules that      would result in the application of the domestic substantive law of any      other jurisdiction. |
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| (e) | Except      as, and to the extent, expressly provided herein, (i) no right or remedy      herein conferred is intended to be exclusive of any other right or remedy,      and every other right and remedy shall be cumulative and in addition to      every other right and remedy given hereunder or now or hereafter existing      at law or in equity or otherwise, so long as such right or remedy does not      conflict with any right or remedy provided hereunder, (ii) any and      all rights to advancement of expenses and/or indemnification to which each      Indemnitee has ever been, is or may in the future be entitled from the      Axcan Companies shall remain unchanged by this Agreement and (iii) the      assertion or employment of any right or remedy hereunder, or otherwise,      shall not prevent the concurrent assertion or employment of any other      right or remedy.  To the extent that any term or condition of      this Agreement conflicts with any term or condition under any Axcan      Indemnity Undertaking or under any other agreement or document to which      any of the Axcan Companies and an Indemnitee are parties or by which      they  are otherwise together bound with respect to the subject      matter of this Agreement, the terms and conditions of this Agreement shall      control. |
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| (f) | Each      Indemnitee that is not a direct party hereunder is and shall be considered      an express third-party beneficiary hereunder and shall be entitled to      enforce this Agreement to the same extent as a party hereunder provided it      provides prior written notice to the Axcan Companies of its intention to      seek the benefit of this Agreement. |
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| (g) | If      any provision or provisions of this Agreement shall be held to be invalid,      illegal or unenforceable for any reason whatsoever:  (i) the      validity, legality and enforceability of the remaining provisions of this      Agreement (including each portion of any section or subsection of this      Agreement containing any such provision held to be invalid, illegal or      unenforceable, that is not itself invalid, illegal or unenforceable) shall      not in any way be affected or impaired thereby; (ii) such provision or      provisions shall be deemed reformed to the extent necessary to conform to      applicable law and to give the maximum effect to the intent of the parties      expressed herein; and (iii) to the fullest extent possible, the provisions      of this Agreement (including each portion of any section or subsection of      this Agreement containing any such provision held to be invalid, illegal      or unenforceable, that is not itself invalid, illegal or unenforceable)      shall be construed so as to give effect to the intent manifested      thereby. |
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| (h) | This      Agreement may be executed in any number of counterparts and by each of the      parties in separate counterparts, each of which when so executed will be      deemed to be an original and all of which together will constitute one and      the same instrument. |
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|   | TPG      Capital, L.P.By:           Tarrant      Capital, LLC By:  _/s/______________________________Name:  Clive      D. BodeTitle:   Vice      President and Secretary |
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|   |                                                                                                                                                                                                                                                                    |

| Axcan      Holdings, Inc. By:  __/s/_____________________________Name:Title:   | Axcan      Pharma Inc. By:  __/s/_____________________________Name:Title |
|---------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|