EX-10.1



 Exhibit 10.1 
  

 
  

CREDIT AGREEMENT 
 dated as of
March 7, 2015 
 by and between 

RECRO PHARMA LLC 
 as the
Borrower, 
 and 
 ORBIMED
ROYALTY OPPORTUNITIES II, LP 
 as the Lender 
  

 
  

 
 [***] Certain information in this document has been omitted and filed separately with
the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 







 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	 	2	  
			
	 SECTION 1.1
	 	Defined Terms	  	 	2	  
	 SECTION 1.2
	 	Use of Defined Terms	  	 	21	  
	 SECTION 1.3
	 	Cross-References	  	 	21	  
	 SECTION 1.4
	 	Financial Determinations	  	 	21	  
	 SECTION 1.5
	 	Interpretation	  	 	22	  
		
	 ARTICLE II COMMITMENT AND BORROWING PROCEDURES
	  	 	22	  
			
	 SECTION 2.1
	 	Commitment	  	 	22	  
	 SECTION 2.2
	 	Borrowing Procedure	  	 	22	  
	 SECTION 2.3
	 	Funding	  	 	23	  
	 SECTION 2.4
	 	Reduction of the Commitment Amounts	  	 	23	  
		
	 ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES
	  	 	23	  
			
	 SECTION 3.1
	 	Repayments and Prepayments; Application	  	 	23	  
	 SECTION 3.2
	 	Repayments and Prepayments	  	 	23	  
	 SECTION 3.3
	 	Interest Rate	  	 	24	  
	 SECTION 3.4
	 	Default Rate	  	 	24	  
	 SECTION 3.5
	 	Payment Dates	  	 	24	  
	 SECTION 3.6
	 	Buy-Out Premium	  	 	24	  
	 SECTION 3.7
	 	Exit Fee	  	 	24	  
	 SECTION 3.8
	 	Commitment Fee	  	 	25	  
		
	 ARTICLE IV LIBO RATE AND OTHER PROVISIONS
	  	 	25	  
			
	 SECTION 4.1
	 	Increased Costs, Etc.	  	 	25	  
	 SECTION 4.2
	 	Increased Capital Costs	  	 	25	  
	 SECTION 4.3
	 	Taxes	  	 	25	  
	 SECTION 4.4
	 	Payments, Computations; Proceeds of Collateral, Etc.	  	 	29	  
	 SECTION 4.5
	 	Setoff	  	 	30	  
	 SECTION 4.6
	 	LIBO Rate Not Determinable	  	 	30	  
		
	 ARTICLE V CONDITIONS TO MAKING THE LOANS
	  	 	30	  
			
	 SECTION 5.1
	 	Credit Extensions	  	 	30	  
	 SECTION 5.2
	 	Secretary’s Certificate, Etc.	  	 	30	  
	 SECTION 5.3
	 	Closing Certificate	  	 	31	  
	 SECTION 5.4
	 	Payment of Outstanding Indebtedness, Etc.	  	 	31	  
	 SECTION 5.5
	 	Delivery of Note	  	 	31	  
	 SECTION 5.6
	 	Financial Information, Etc.	  	 	32	  
	 SECTION 5.7
	 	Compliance Certificate	  	 	32	  
	 SECTION 5.8
	 	Solvency, Etc.	  	 	32	  
	 SECTION 5.9
	 	Guarantee	  	 	32	  


  
 i 









							
	 SECTION 5.10
		Security Agreement		 	32	  
	 SECTION 5.11
		Intellectual Property Security Agreements		 	33	  
	 SECTION 5.12
		Opinions of Counsel		 	33	  
	 SECTION 5.13
		Mortgaged Property		 	33	  
	 SECTION 5.14
		Flood Determinations; Flood Insurance		 	34	  
	 SECTION 5.15
		Insurance		 	34	  
	 SECTION 5.16
		Closing Fees, Expenses, Etc.		 	34	  
	 SECTION 5.17
		Anti-Terrorism Laws		 	34	  
	 SECTION 5.18
		Satisfactory Legal Form		 	34	  
	 SECTION 5.19
		Commitment Fee, Expenses, Etc.		 	34	  
	 SECTION 5.20
		Corporate Structure and Capitalization		 	34	  
	 SECTION 5.21
		[Intentionally Omitted.]		 	35	  
	 SECTION 5.22
		Governmental and Third Party Approvals		 	35	  
	 SECTION 5.23
		Acquisition		 	35	  
	 SECTION 5.24
		Merger		 	35	  
	 SECTION 5.25
		Perfection Certificates		 	35	  
	 SECTION 5.26
		Warrant		 	36	  
		
	 ARTICLE VI REPRESENTATIONS AND WARRANTIES
		 	36	  
			
	 SECTION 6.1
		Organization, Etc.		 	36	  
	 SECTION 6.2
		Due Authorization, Non-Contravention, Etc.		 	36	  
	 SECTION 6.3
		Government Approval, Regulation, Etc.		 	36	  
	 SECTION 6.4
		Validity, Etc.		 	36	  
	 SECTION 6.5
		Financial Information		 	37	  
	 SECTION 6.6
		No Material Adverse Change		 	37	  
	 SECTION 6.7
		Litigation, Labor Matters and Environmental Matters		 	37	  
	 SECTION 6.8
		Subsidiaries		 	37	  
	 SECTION 6.9
		Ownership of Properties		 	38	  
	 SECTION 6.10
		Taxes		 	38	  
	 SECTION 6.11
		Benefit Plans, Etc.		 	38	  
	 SECTION 6.12
		Accuracy of Information		 	38	  
	 SECTION 6.13
		Regulations U and X		 	39	  
	 SECTION 6.14
		Solvency		 	39	  
	 SECTION 6.15
		Intellectual Property		 	39	  
	 SECTION 6.16
		Material Agreements		 	40	  
	 SECTION 6.17
		Permits		 	41	  
	 SECTION 6.18
		Regulatory Matters		 	41	  
	 SECTION 6.19
		Transactions with Affiliates		 	44	  
	 SECTION 6.20
		Investment Company Act		 	44	  
	 SECTION 6.21
		OFAC		 	44	  
	 SECTION 6.22
		Deposit and Disbursement Accounts		 	45	  
	 SECTION 6.23
		Customer and Trade Relations		 	45	  
	 SECTION 6.24
		Meloxicam Assets and Liabilities		 	45	  
		
	 ARTICLE VII AFFIRMATIVE COVENANTS
		 	45	  
			
	 SECTION 7.1
		Financial Information, Reports, Notices, Etc.		 	45	  


  
 ii 









							
	 SECTION 7.2
		Maintenance of Existence; Compliance with Contracts, Laws, Etc.		 	48	  
	 SECTION 7.3
		Maintenance of Properties		 	48	  
	 SECTION 7.4
		Insurance		 	48	  
	 SECTION 7.5
		Books and Records		 	49	  
	 SECTION 7.6
		Environmental Law Covenant		 	49	  
	 SECTION 7.7
		Use of Proceeds		 	49	  
	 SECTION 7.8
		Future Guarantors, Security, Etc.		 	49	  
	 SECTION 7.9
		Obtaining of Permits, Etc.		 	50	  
	 SECTION 7.10
		Product Licenses		 	50	  
	 SECTION 7.11
		Maintenance of Regulatory Authorizations, Contracts, Intellectual Property, Etc.		 	51	  
	 SECTION 7.12
		Inbound Licenses		 	52	  
	 SECTION 7.13
		Cash Management		 	52	  
	 SECTION 7.14
		Board Observation Rights		 	53	  
	 SECTION 7.15
		Post-Closing Items		 	53	  
		
	 ARTICLE VIII NEGATIVE COVENANTS
		 	54	  
			
	 SECTION 8.1
		Business Activities		 	54	  
	 SECTION 8.2
		Indebtedness		 	54	  
	 SECTION 8.3
		Liens		 	55	  
	 SECTION 8.4
		Financial Covenants		 	56	  
	 SECTION 8.5
		Investments		 	58	  
	 SECTION 8.6
		Restricted Payments, Etc.		 	58	  
	 SECTION 8.7
		Consolidation, Merger; Permitted Acquisitions, Etc.		 	58	  
	 SECTION 8.8
		Permitted Dispositions		 	59	  
	 SECTION 8.9
		Modification of Certain Agreements		 	59	  
	 SECTION 8.10
		Transactions with Affiliates		 	59	  
	 SECTION 8.11
		Restrictive Agreements, Etc.		 	59	  
	 SECTION 8.12
		Sale and Leaseback		 	60	  
	 SECTION 8.13
		Product Agreements		 	60	  
	 SECTION 8.14
		Change in Name, Location or Executive Office or Executive Management; Change in Fiscal Year		 	60	  
	 SECTION 8.15
		Benefit Plans and Agreements		 	60	  
	 SECTION 8.16
		Restricted Senior Payments		 	61	  
		
	 ARTICLE IX EVENTS OF DEFAULT
		 	61	  
			
	 SECTION 9.1
		Listing of Events of Default		 	61	  
	 SECTION 9.2
		Action if Bankruptcy		 	64	  
	 SECTION 9.3
		Action if Other Event of Default		 	64	  
		
	 ARTICLE X MISCELLANEOUS PROVISIONS
		 	64	  
			
	 SECTION 10.1
		Waivers, Amendments, Etc.		 	64	  
	 SECTION 10.2
		Notices; Time		 	64	  
	 SECTION 10.3
		Payment of Costs and Expenses		 	65	  
	 SECTION 10.4
		Indemnification		 	65	  


  
 iii 









							
	 SECTION 10.5
		Survival		 	66	  
	 SECTION 10.6
		Severability		 	66	  
	 SECTION 10.7
		Headings		 	66	  
	 SECTION 10.8
		Execution in Counterparts, Effectiveness, Etc.		 	66	  
	 SECTION 10.9
		Governing Law; Entire Agreement		 	66	  
	 SECTION 10.10
		Successors and Assigns		 	67	  
	 SECTION 10.11
		Other Transactions		 	67	  
	 SECTION 10.12
		Forum Selection and Consent to Jurisdiction		 	67	  
	 SECTION 10.13
		Waiver of Jury Trial		 	67	  
	 SECTION 10.14
		Confidentiality		 	68	  
	 SECTION 10.15
		Exceptions to Confidentiality		 	68	  
		
	 ARTICLE XI CERTAIN MATTERS PENDING CLOSING
		 	69	  
			
	 SECTION 11.1
		Certain Conduct Pending Closing		 	69	  

 SCHEDULES: 
  

			
	Schedule 1.01(a)		Georgia Real Property
	Schedule 6.7(a)		Litigation
	Schedule 6.8		Existing Subsidiaries
	Schedule 6.11		Benefit Plans
	Schedule 6.15(a)		Intellectual Property
	Schedule 6.15(b)(iii)		Intellectual Property Proceedings
	Schedule 6.15(c)		Infringement of Intellectual Property
	Schedule 6.15(e)		Infringement Notices
	Schedule 6.16		Material Agreements
	Schedule 6.18(c)		Clinical Trials
	Schedule 6.19		Transactions with Affiliates
	Schedule 6.22		Deposit and Disbursement Accounts
	Schedule 7.7		Use of Proceeds
	Schedule 7.16(a)		Meloxicam Assets and Liabilities
	Schedule 8.2(b)		Indebtedness to be Paid
	Schedule 8.2(c)		Existing Indebtedness
	Schedule 8.3(c)		Existing Liens
	Schedule 8.5(a)		Investments
	Schedule 8.9		Intracompany License Agreements
	Section 8.15(b)		Agreements Outside of Ordinary Course of Business
	Schedule 10.2		Notice Information

 EXHIBITS: 

 

					
	Exhibit A    		-    		Form of Promissory Note
	Exhibit B		-    		Form of Loan Request
	Exhibit C		-    		Form of Compliance Certificate
	Exhibit D		-    		Form of Guarantee
	Exhibit E		-    		Form of Security Agreement


  
 iv 









					
	Exhibit F    		-    		Form of Assumption Agreement
	Exhibit G		-    		Form of Mortgage
	Exhibit H		-    		Form of Warrant
	Exhibit I		-    		Form of Perfection Certificate for Recro
	Exhibit J		-    		Form of Perfection Certificate for Recro Pharma LLC
	Exhibit K		-    		Form of Perfection Certificate for the Surviving Entity
	Exhibit L		-    		Form of Perfection Certificate for Newco
	Exhibit M		-    		Forms of Tax Certificates


  
 v 








 CREDIT AGREEMENT 

THIS CREDIT AGREEMENT dated as of March 7, 2015 (as amended, supplemented or otherwise modified from time to time, this
“Agreement”), is by and between RECRO PHARMA LLC, a Delaware limited liability company (the “Borrower”) and ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors,
transferees and assignees, the “Lender”). 
 W I T N E S S E T
H: 
 WHEREAS, Recro Pharma, Inc., a Pennsylvania corporation (“Recro”), the Borrower, Alkermes Pharma Ireland
Limited, a private limited company incorporated in Ireland (“APIL”), Daravita Limited, a private limited company incorporated in Ireland (“Daravita”), and Eagle Holdings USA, Inc., a Delaware corporation
(“Eagle Holdings”), have entered into a Purchase and Sale Agreement dated as of March 7, 2015 (the “Acquisition Agreement”); 

WHEREAS, Alkermes Ireland Holdings Limited, a private limited company incorporated in Ireland, holds 100% of the Capital Securities of
Daravita, and Eagle Holdings holds 100% of the Capital Securities of Alkermes Gainesville LLC, a Massachusetts limited liability company (“Alkermes Gainesville,” and together with Daravita, each individually a
“Company” and collectively, the “Companies”); 
 WHEREAS, pursuant to the Acquisition Agreement, APIL will
form a new Delaware limited liability company (“Newco”) which, prior to the closing of the transactions contemplated by the Acquisition Agreement, will acquire substantially all of the assets and liabilities of Daravita through a
reorganization (the “Asset and Liability Transfer”); 
 WHEREAS, pursuant to the Acquisition Agreement, Recro has agreed to
acquire, through Borrower, 100% of the Capital Securities of (i) Alkermes Gainesville and (ii) Newco (the “Acquisition”); 

WHEREAS, immediately following the Acquisition, Recro will cause the Borrower to merge (the “Merger”) with and into Alkermes
Gainesville with Alkermes Gainesville being the surviving entity following the Merger, immediately after which Alkermes Gainesville will change its name to Recro Gainesville LLC (the “Surviving Entity”), and all references to
Borrower in this Agreement for any period from and after consummation of the Acquisition and the Merger shall include the Surviving Entity; 

WHEREAS, the Borrower has requested that the Lender provide a senior secured term loan facility to the Borrower in an aggregate principal
amount of $50,000,000; 
 WHEREAS, the proceeds of the Loan (as defined below) are to be used to pay the cash consideration for the
Acquisition and, to the extent permitted by this Agreement, provide funding for other general corporate purposes of the Borrower and its Subsidiaries; 

WHEREAS, in order to induce the Lender to enter into this Agreement and make the Loan hereunder, Recro has, concurrently with the signing of
this Agreement on the date hereof, executed and delivered the Guarantee to the Lender; 







 WHEREAS, as a result of the Merger, Newco will become a wholly-owned subsidiary of the Borrower
and a Loan Party hereunder, and will be required to execute and deliver on the Closing Date a supplement to the Guarantee and a supplement to the Security Agreement (in addition to taking any other actions as may be required in accordance with
Section 7.8 hereof); and 
 WHEREAS, the Lender is willing, on the terms and subject to the conditions hereinafter set forth, to extend
the Commitment and make the Loan to the Borrower; 
 NOW, THEREFORE, the parties hereto agree as follows. 

ARTICLE I 
 DEFINITIONS AND
ACCOUNTING TERMS 
 SECTION 1.1 Defined Terms. The following terms (whether or not underscored) when used in this Agreement,
including its preamble and recitals, shall, except where the context otherwise requires, have the following meanings (such meanings to be equally applicable to the singular and plural forms thereof): 

“Acquisition” shall have the meaning assigned to such term in the preamble hereof. 

“Acquisition Agreement” shall have the meaning assigned to such term in the preamble hereof. 

“Affiliate” of any Person means any other Person which, directly or indirectly, Controls, is Controlled by or is under common
Control with such Person. “Control” (and its correlatives) by any Person means (a) the power of such Person, directly or indirectly, (i) to vote 15% or more of the Voting Securities (determined on a fully diluted basis) of
another Person, or (ii) to direct or cause the direction of the management and policies of such other Person (whether by contract or otherwise), or (b) ownership by such Person of 10% or more of the Capital Securities of another Person.
Notwithstanding anything contained in the foregoing to the contrary, Malvern Consulting Group, Inc. shall be an Affiliate of the Borrower. 

“Agreement” is defined in the preamble. 

“Applicable Margin” means 14.00%. 

“Applicable Percent” means the applicable percent set forth in the table below opposite the applicable Consolidated Total
Leverage Ratio: 
  

					
	 Consolidated Total Leverage Ratio
	  	Applicable Percent	 
	 > 1.33:1.00
	  	 	100	% 
	 > 1.00:1.00 but £ 1.33:1.00
	  	 	50	% 
	 £ 1.00:1.00
	  	 	0	% 


  
 2 








 “Assumption Agreement” shall mean the Assumption Agreement executed by the
Surviving Entity upon consummation of the Merger, in substantially the form of Exhibit F hereto. 
 “Authorized
Officer” means, relative to any Loan Party or any of its respective Subsidiaries, those of its officers, general partners or managing members (as applicable) whose signatures and incumbency shall have been certified to the Lender pursuant
to Section 5.2. 
 “Benefit Plan” means any employee benefit plan, within the meaning of section 3(3) of ERISA,
that either: (i) is a “multiemployer plan,” as defined in section 3(37) of ERISA, (ii) is subject to section 412 of the Code, section 302 of ERISA or Title IV of ERISA, or (iii) provides welfare benefits to terminated
employees, other than to the extent required by section 4980B(f) of the Code and the corresponding provisions of ERISA. 

“Borrower” shall have the meaning assigned to such term in the opening paragraph hereof, it being understood that
(i) the Borrower shall be the Surviving Entity from and after the Merger and (ii) for purposes of Article VI, all references therein to the Borrower and the Loan Parties shall include (A) the Companies and (B) Newco
(assuming for such purpose that Newco was formed and the Asset and Liability Transfer occurred immediately prior to the execution of this Agreement). 

“Borrower Loan Party” means the Borrower and its Subsidiaries that are Loan Parties. 

“Business” shall have the meaning ascribed thereto in the Acquisition Agreement. 

“Business Day” means any day which is neither a Saturday or Sunday nor a legal holiday on which banks are authorized or
required to be closed in New York. 
 “Buy-Out Premium Amount” means an amount, payable by the Borrower to the Lender
in U.S. Dollars, equal to (i) in the event that the Loan is, or is required to be, repaid or prepaid in whole, the difference between (a) $75,000,000, less (b) the Recovered Amount and (ii) in the event that the Loan is repaid or
prepaid in part, the difference between (x) the amount of principal of the Loan so repaid or prepaid multiplied by 1.5, less (y) the Recovered Amount. The Buy-Out Premium Amount shall not be less than zero. 

“Capital Securities” means, with respect to any Person, all shares of, interests or participations in, or other equivalents
in respect of (in each case however designated, whether voting or non-voting), of such Person’s equity interests, whether now outstanding or issued after the date hereof. 

“Capitalized Lease Liabilities” means, with respect to any Person, all monetary obligations of such Person and its
Subsidiaries under any leasing or similar arrangement which have been (or, in accordance with GAAP, should be) classified as capitalized leases, and for purposes of each Loan Document the amount of such obligations shall be the capitalized amount
thereof, determined in accordance with GAAP, and the stated maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the first date upon which such lease may be terminated by the lessee without
payment of a premium or a penalty. 

  
 3 








 “Cash Equivalent Investment” means, at any time: 

(a) any direct obligation of (or unconditionally guaranteed by) the United States (or any agency or political subdivision
thereof, to the extent such obligations are supported by the full faith and credit of the United States) maturing not more than one year after such time; 

(b) commercial paper maturing not more than 270 days from the date of issue, which is issued by a corporation (other than an
Affiliate of any Loan Party or any of its respective Subsidiaries) organized under the laws of any state of the United States or of the District of Columbia and rated A-1 or higher by S&P or P-1 or higher by Moody’s; or 
 (c) any certificate of deposit, time deposit or
bankers acceptance, maturing not more than 180 days after its date of issuance, which is issued by any bank organized under the laws of the United States (or any state thereof) and which has (x) a credit rating of A2 or higher from Moody’s
or A or higher from S&P and (y) a combined capital and surplus greater than $500,000,000. 
 “Casualty Event”
means the damage, destruction or condemnation, as the case may be, of property of any Person or any of its Subsidiaries. 

“cGCP” means the then current Good Clinical Practices that establish the international ethical and scientific quality
standards for designing, conducting, recording and reporting clinical trials that are promulgated or endorsed for the United States by the FDA (including through ICH E6 and 21 CFR Parts 50, 54, 56 and 312) and for outside the United States by
comparable Governmental Authorities. 
 “cGLP” means the then current Good Laboratory Practice Standards (or similar
standards) for the performance of non-clinical laboratory studies and activities for pharmaceutical or biological products that are promulgated or endorsed for the United States by the FDA (including through 21 CFR Part 58) and for outside the
United States by comparable Governmental Authorities. 
 “cGMP” means the then current good manufacturing practices and
regulatory requirements for or concerning manufacturing practices for pharmaceutical or biological products (and components thereof) that are promulgated or endorsed for the United States by the FDA (including through 21 CFR Parts 210 and 211) and
for outside the United States by comparable Governmental Authorities. 
 “Change in Control” means and shall be deemed to
have occurred if (i)(a) any “person” or “group” (within the meaning of Rule 13d-5 of the Securities Exchange Act of 1934 as in effect on the date hereof), other than SCP Vitalife, shall own, directly or indirectly, beneficially
or of record, determined on a fully diluted basis, more than 40% of the Voting Securities of Recro or (b) SCP Vitalife shall own, directly or indirectly, beneficially or of record, determined on a fully diluted basis, more than 50% of the
Voting Securities of Recro; (ii) a majority of the seats (other than vacant seats) on the board of directors (or equivalent) of Recro shall at any time be occupied by persons who were neither (x) nominated by the board of directors of
Recro nor (y) appointed by directors so nominated, or (iii) Recro shall cease to directly or indirectly own, beneficially and of record, 100% of the issued and outstanding Capital Securities of the Borrower and Recro’s other
Subsidiaries. 

  
 4 








 “Change in Law” means the occurrence, after the date of this Agreement, of any
of the following: (i) the adoption or taking effect of any law, rule, regulation or treaty, (ii) any change in any law, rule, regulation or treaty or in the administration, interpretation, implementation or application thereof by any
Governmental Authority or (iii) the making or issuance of any request, rule, guideline or directive (whether or not having the force of law) by any Governmental Authority; provided that, notwithstanding anything herein to the contrary,
(x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives promulgated by the Bank
for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case be deemed to be a
“Change in Law”, regardless of the date enacted, adopted or issued. 
 “Closing Certificate” means a closing
certificate executed and delivered by an Authorized Officer of the Borrower in form and substance reasonably satisfactory to the Lender. 

“Closing Date” means the date of the making of the Loan hereunder, which in no event shall be later than April 21, 2015.

 “CMS” means the U.S. Center for Medicare and Medicaid Services. 

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

“Commitment” means the Lender’s obligations (if any) to make Loan hereunder. 

“Commitment Amount” means $50,000,000. 

“Company” and “Companies” shall have the meanings assigned to such terms in the recitals hereof. 

“Compliance Certificate” means a certificate duly completed and executed by an Authorized Officer of the Borrower,
substantially in the form of Exhibit C hereto, together with such changes thereto as the Lender may from time to time request for the purpose of monitoring the Borrower’s compliance with the financial covenants contained herein.

 “Confidential Information” means any and all information or material (whether written or oral, or in electronic or other
form) that, at any time before, on or after the Closing Date, has been or is provided or communicated to the Receiving Party by or on behalf of the Disclosing Party pursuant to this Agreement or in connection with the transactions contemplated
hereby, and shall include the existence and terms of this Agreement. 
 “Consolidated Capital Expenditures” shall mean, for
any period, the aggregate of all expenditures of the Borrower and its Subsidiaries during such period determined on a consolidated basis that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash
or financed. 

  
 5 








 “Consolidated EBITDA” shall mean, for the Borrower and its Subsidiaries, for any
period, an amount equal to the sum of (i) Consolidated Net Income for such period plus (ii) solely to the extent deducted in determining Consolidated Net Income for such period, and without duplication, (A) Consolidated
Interest Expense, (B) income tax expense determined on a consolidated basis in accordance with GAAP, (C) depreciation and amortization determined on a consolidated basis in accordance with GAAP, (D) compensation paid solely in Capital
Securities of Recro that are not Disqualified Capital Securities, (E) corporate allocations paid by Non-Borrower Parties (that are not reimbursed or repaid in cash by Borrower Parties) up to $5,000,000 in the aggregate per Fiscal Year, and
(F) all other non-cash charges approved by the Lender in its sole discretion, determined on a consolidated basis in accordance with GAAP, in each case for such period. 

“Consolidated Interest Expense” shall mean, for the Borrower and its Subsidiaries, for any period, the consolidated total
interest expense (including that portion attributable to Capital Leases in accordance with GAAP and capitalized interest), in each case whether or not paid in cash during such period. 

“Consolidated Net Income” shall mean, for Borrower and its Subsidiaries for any period, the net income (or loss) of the
Borrower and its Subsidiaries for such period determined on a consolidated basis in accordance with GAAP, but excluding therefrom (to the extent otherwise included therein) (i) extraordinary or non-recurring gains, losses or charges (such
losses or charges to be approved by the Lender in its sole discretion, and in any event not to exceed $500,000 in any Fiscal Year in respect of litigation expenses), (ii) any non-cash gains or losses attributable to write-ups or write-downs of
assets, (iii) any Capital Securities of the Borrower or any of its Subsidiaries in the unremitted earnings of any Person that is not a Subsidiary, to the extent received by the Borrower or any Subsidiary in cash, (iv) any income (or loss)
of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with Borrower or any Subsidiary on the date that such Person’s assets are acquired by Borrower or any Subsidiary and (v) the income (but not
loss) of any Subsidiary to the extent there is a legal or contractual restriction which limits distributions from such Subsidiary to the Borrower. 

“Consolidated Total Debt” shall mean, as of any date, all Indebtedness of the Borrower and its Subsidiaries measured on a
consolidated basis as of such date. 
 “Consolidated Total Leverage Ratio” shall mean the ratio of (a) Consolidated
Total Debt to (b) Consolidated EBITDA for the most recently ended Fiscal Quarter for which financial statements are required to have been delivered (or for which financial statements are not yet required to be delivered but have already been
delivered) pursuant to this Agreement. 
 “Contingent Liability” means any agreement, undertaking or arrangement by which
any Person guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to
assure a creditor against loss) the Indebtedness of any other Person (other than by endorsements of instruments in the course of collection), or guarantees the payment of dividends or other distributions upon the Capital Securities of any other
Person. The amount of any Person’s obligation under any Contingent Liability shall (subject to any limitation set forth therein) be deemed to be the outstanding principal amount of the debt, obligation or other liability guaranteed thereby.


  
 6 








 “Control” is defined within the definition of “Affiliate”. 

“Controlled Account” is defined in Section 7.13(a). 

“Copyright Security Agreement” means any Copyright Security Agreement executed and delivered by any Loan Party in
substantially the form of Exhibit C to the Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“Copyrights” means all copyrights, whether statutory or common law, and all exclusive and nonexclusive licenses from third
parties or rights to use copyrights owned by such third parties, along with any and all (i) renewals, revisions, extensions, derivative works, enhancements, modifications, updates and new releases thereof, (ii) income, royalties, damages,
claims and payments now and hereafter due and/or payable with respect thereto, including, without limitation, damages and payments for past, present or future infringements thereof, (iii) rights to sue for past, present and future infringements
thereof, and (iv) foreign copyrights and any other rights corresponding thereto throughout the world. 
 “Covered
Agreements” means the Focalin Agreements, the Paladin Agreement, the Ritalin Agreement, the Verapamil Agreement, the Verelan Agreement, and the Zohydro Agreements. 

“Current Assets” shall mean, as at any date of determination, the total assets of the Borrower and its Subsidiaries on a
consolidated basis that may properly be classified as current assets in conformity with GAAP, excluding cash and cash equivalents. 

“Current Liabilities” shall mean, as at any date of determination, the total liabilities of the Borrower and its Subsidiaries
on a consolidated basis that may properly be classified as current liabilities in conformity with GAAP, excluding the current portion of long term debt. 

“Daravita” means Daravita Limited (f/k/a Alkermes Science One Limited). 

“DEA” means the United States Drug Enforcement Administration and any successor administration thereto. 

“Default” means any Event of Default or any condition, occurrence or event which, after notice or lapse of time or both,
would constitute an Event of Default. 
 “Designated Jurisdiction” means any country or territory to the extent that such
country or territory is the subject of any Sanction. 
 “Disclosing Party” means the Party disclosing Confidential
Information. 
 “Disposition” (or similar words such as “Dispose”) means any sale, transfer, lease,
license, contribution or other conveyance (including by way of merger) of, or the granting of options, warrants or other rights to, any Loan Party’s or any Loan Party’s Subsidiary’s assets


  
 7 








 
(including any accounts receivable and including Capital Securities of Subsidiaries) to any other Person (other than by a Borrower Loan Party to a Borrower Loan Party or by a Non-Borrower Loan
Party to a Non-Borrower Loan Party) in a single transaction or series of transactions. 
 “Disqualified Capital Securities”
shall mean any Capital Securities that, by their terms (or by the terms of any security or other Capital Securities into which they are convertible or for which they are exchangeable) or upon the happening of any event or condition, (a) mature
or are mandatorily redeemable (other than solely for Qualified Capital Securities), pursuant to a sinking fund obligation or otherwise (except as a result of a Change in Control or asset sale so long as any rights of the holders thereof upon the
occurrence of a Change in Control or asset sale event shall be subject to the prior repayment in full of the Loan and all other Obligations that are accrued and payable and the termination of the Commitment), (b) are redeemable at the option of
the holder thereof (other than solely for Qualified Capital Securities) (except as a result of a Change in Control or asset sale so long as any rights of the holders thereof upon the occurrence of a Change in Control or asset sale event shall be
subject to the prior repayment in full of the Loan and all other Obligations that are accrued and payable and the termination of the Commitment), in whole or in part, (c) provide for the scheduled payment of dividends in cash or (d) are or
become convertible into or exchangeable for Indebtedness or any other Capital Securities that would constitute Disqualified Capital Securities, in each case, prior to the date that is one hundred and eighty-one (181) days after the Maturity
Date; provided that if such Capital Securities are issued pursuant to a plan for the benefit of employees of any Loan Party or any of its respective Subsidiaries, or by any such plan to such employees, such Capital Securities shall not
constitute Disqualified Capital Securities solely because they may be required to be repurchased by such Loan Party or such Loan Party’s applicable Subsidiary in order to satisfy applicable statutory or regulatory obligations. 

“EMA” means the European Medicines Agency or any successor entity. 

“Environmental Laws” means all federal, state, local or international laws, statutes, rules, regulations, codes, directives,
treaties, requirements, ordinances, orders, decrees, judgments, injunctions, binding notices or agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the environment, natural resources, Hazardous
Material or health and safety matters. 
 “Environmental Liability” means any liability, loss, claim, suit, action,
investigation, proceeding, damage, commitment or obligation, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of or affecting any Loan Party or any of its respective
Subsidiaries directly or indirectly arising from, in connection with or based upon (i) any Environmental Law or Environmental Permit, (ii) the generation, use, handling, transportation, storage, treatment, recycling, presence, disposal,
Release or threatened Release of, or exposure to, any Hazardous Materials, or (iii) any contract, agreement, penalty, order, decree, settlement, injunction or other arrangement (including operation of law) pursuant to which liability is
assumed, entered into, inherited or imposed with respect to any of the foregoing. 
 “Environmental Permit” is defined in
Section 6.7(c). 

  
 8 








 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time. 
 “ERISA Affiliate” means, as applied to any Person, (i) any corporation that is a member of a
controlled group of corporations within the meaning of section 414(b) of the Code of which that Person is a member, (ii) any trade or business (whether or not incorporated) that is a member of a group of trades or businesses under common
control within the meaning of section 414(c) of the Code of which that Person is a member, and (iii) any member of an affiliated service group within the meaning of section 414(m) or 414(o) of the Code of which that Person, any corporation
described in clause (i) above or any trade or business described in clause (ii) above is a member. 
 “Event of
Default” is defined in Section 9.1. 
 “Excess Cash Flow” shall mean, for any period, an amount (if
positive) determined for the Borrower and its Subsidiaries equal to: (i) the sum, without duplication, of the amounts for such period of Consolidated EBITDA, plus extraordinary gains, inclusive of gains from asset sales, to the extent received
in cash during such period plus decreases or minus increases (as the case may be) in Working Capital, minus (ii) the sum of, without duplication, (a) the Consolidated Interest Expense paid in cash during such period, (b) the cash
portion of income taxes paid during such period, (c) the cash portion of Consolidated Capital Expenditures paid during such period, (d) all payments made in respect of the principal amount of Indebtedness permitted pursuant to
Section 8.2(a), (c), (e) or (f) during such period and (f) extraordinary or non-recurring charges made or incurred in cash during such period that were added back in the calculation of Consolidated
EBITDA. For purposes of this definition, “Working Capital” means Current Assets minus Current Liabilities. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Excluded Accounts” means deposit accounts that are zero balance accounts and are used exclusively for payroll, payroll taxes
and other employee wage and benefit payments to or for the benefit of the Loan Parties’ employees. 
 “Exit Fee
Amount” means an amount equal to (10%) of the principal amount of any prepayment or repayment of the Loan, other than a repayment of all or any portion of the Loan on the Maturity Date. 

“FATCA” means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version
that is substantively comparable and not materially more onerous to comply with), any intergovernmental agreements with respect thereto, any current or future regulations or official interpretations thereof, and any agreements entered into pursuant
to Section 1471(b)(1) of the Code. 
 “FDA” means the U.S. Food and Drug Administration and any successor entity. 

“FDA Approval” means, with respect to a Product, approval of a new drug application (NDA) (as defined in the FD&C Act) by
the FDA for use of such Product in the United States. 

  
 9 








 “FD&C Act” means the U.S. Food, Drug and Cosmetic Act (or any successor
thereto), as amended from time to time, and the rules, regulations, guidelines, guidance documents and compliance policy guides issued or promulgated thereunder. 

“Focalin Agreements” means the License and Supply Agreement by and between Novartis Pharmaceutical Corporation and Daravita,
dated as of December 17, 1997, as amended, and the Preliminary Development Agreement by and between Novartis Pharmaceutical Corporation and Daravita, dated as of September 21, 2001, as amended. 

“Fiscal Quarter” means a quarter ending on the last day of March, June, September or December. 

“Fiscal Year” means any period of twelve consecutive calendar months ending on December 31; references to a Fiscal Year
with a number corresponding to any calendar year (e.g., the “2014 Fiscal Year”) refer to the Fiscal Year ending on December 31 of such calendar year. 

“F.R.S. Board” means the Board of Governors of the Federal Reserve System or any successor thereto. 

“FTC Act” means the Federal Trade Commission Act. 

“GAAP” means generally accepted accounting principles in the United States. 

“Governmental Authority” means any national, supranational, federal, state, county, provincial, local, municipal or other
government or political subdivision thereof (including any Regulatory Agency), whether domestic or foreign, and any agency, authority, commission, ministry, instrumentality, regulatory body, court, tribunal, arbitrator, central bank or other Person
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to any such government. 

“Guarantee” means the guarantee executed and delivered by each Guarantor, substantially in the form of Exhibit D
hereto, as amended, supplemented, amended and restated or otherwise modified from time to time. 
 “Guarantors” means Recro
and each of its Subsidiaries, and each future Subsidiary required to execute a Guarantee pursuant to Section 7.8. For the avoidance of doubt, following the consummation of the Merger on the Closing Date, “Guarantors” shall
include Newco. 
 “Hazardous Material” means any material, substance, chemical, mixture or waste which is capable of
damaging or causing harm to any living organism, the environment or natural resources, including all explosive, special, hazardous, polluting, toxic, industrial, dangerous, biohazardous, medical, infectious or radioactive substances, materials or
wastes, noise, odor, electricity or heat, and including petroleum or petroleum products, byproducts or distillates, asbestos or asbestos-containing materials, urea formaldehyde, polychlorinated biphenyls, radon gas, ozone-depleting substances,
greenhouse gases, and all other substances or wastes of any nature regulated pursuant to any Environmental Law or as to which any Governmental Authority requires investigation, reporting or remedial action. 

  
 10 








 “Hedging Obligations” means, with respect to any Person, all liabilities of such
Person under currency exchange agreements, interest rate swap agreements, interest rate cap agreements and interest rate collar agreements, and all other agreements or arrangements designed to protect such Person against fluctuations in interest
rates or currency exchange rates. 
 “Impermissible Qualification” means any qualification or exception to the
opinion or certification of any independent public accountant as to any financial statement of the Borrower (i) which is of a “going concern” or similar nature, (ii) which relates to the limited scope of examination of matters
relevant to such financial statement, or (iii) which relates to the treatment or classification of any item in such financial statement and which, as a condition to its removal, would require an adjustment to such item the effect of which would
be to cause the Borrower to be in Default. 
 “IND” means (a)
(i) an investigational new drug application (as defined in the FD&C Act) that is required to be filed with the FDA before beginning clinical testing in human subjects, or any successor application or procedure; and
(ii) any similar application or functional equivalent relating to any investigational new drug application applicable to or required by any country, jurisdiction or Governmental Authority other than the U.S.; and (b) all supplements and
amendments that may be filed with respect to the foregoing. 
 “Indebtedness” of any Person means: 

(a) all obligations of such Person for borrowed money or advances and all obligations of such Person evidenced by bonds,
debentures, notes or similar instruments; 
 (b) all obligations, contingent or otherwise, relative to the face amount of all
letters of credit, whether or not drawn, and banker’s acceptances issued for the account of such Person; 
 (c) all
Capitalized Lease Liabilities of such Person and all obligations of such Person arising under Synthetic Leases; 
 (d) net
Hedging Obligations of such Person; 
 (e) all obligations of such Person in respect of Disqualified Capital Securities; 

(f) whether or not so included as liabilities in accordance with GAAP, all obligations of such Person to pay the deferred
purchase price of property or services (excluding trade accounts payable in the ordinary course of business which are not overdue for a period of more than 90 days or, if overdue for more than 90 days, as to which a dispute exists and adequate
reserves in conformity with GAAP have been established on the books of such Person), and indebtedness secured by (or for which the holder of such indebtedness has an existing right, contingent or otherwise, to be secured by) a Lien on property owned
or being acquired by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; and 

(g) all Contingent Liabilities of such Person in respect of any of the foregoing. 

  
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 The Indebtedness of any Person shall include the Indebtedness of any other Person (including any partnership in
which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such other Person, except to the extent the terms of such Indebtedness provide
that such Person is not liable therefor. 
 “Indemnified Liabilities” is defined in Section 10.4. 

“Indemnified Parties” is defined in Section 10.4. 

“Infringement” and “Infringes” mean the misappropriation or other violation of know-how, trade secrets,
confidential information, and/or Intellectual Property. 
 “Intellectual Property” means all (i) Patents;
(ii) Trademarks and all applications, registrations and renewals thereof; (iii) Copyrights and other works of authorship (registered or unregistered), and all applications, registrations and renewals thereof; (iv) Product
Authorizations; (v) Product Agreements; (vi) computer software, databases, data and documentation; (vii) trade secrets and confidential business information, whether patentable or unpatentable and whether or not reduced to practice,
know-how, inventions, manufacturing processes and techniques, research and development information, data and other information included in or supporting Regulatory Authorizations; (viii) financial, marketing and business data, pricing and cost
information, business, finance and marketing plans, customer and prospective customer lists and information, and supplier and prospective supplier lists and information; (ix) other intellectual property or similar proprietary rights;
(x) copies and tangible embodiments of any of the foregoing (in whatever form or medium); and (xi) any and all improvements to any of the foregoing. 

“Interest Period” means, (a) initially, the period beginning on (and including) the date on which the Loan is made
hereunder pursuant to Section 2.3 and ending on (and including) the last day of the Fiscal Quarter in which the Loan was made, and (b) thereafter, the period beginning on (and including) the first day of each succeeding Fiscal
Quarter and ending on the earlier of (and including) (x) the last day of such Fiscal Quarter and (y) the Maturity Date. 

“Investment” means, relative to any Person, (i) any loan, advance or extension of credit made by such Person to any
other Person, including the purchase by such Person of any bonds, notes, debentures or other debt securities of any other Person, (ii) Contingent Liabilities in favor of any other Person, and (iii) any Capital Securities held by such
Person in any other Person. The amount of any Investment shall be the original principal or capital amount thereof less all returns of principal or equity thereon and shall, if made by the transfer or exchange of property other than cash, be deemed
to have been made in an original principal or capital amount equal to the fair market value of such property at the time of such Investment. 

“Key Permits” means all Permits relating to the Products, including all Regulatory Authorizations. 

  
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 “Key Persons” means: 

 

			
	 Name
	  	 Office

	(a) Gerri Henwood	  	Chief Executive Officer;
	(b) Joseph Zoghbi	  	Director of Engineering / Facilities;
	(c) Kevin Duggan	  	Director of Manufacturing; and
	(d) Diane Myers	  	Senior Vice President of Regulatory Affairs & Quality Assurance

 “knowledge” of the Borrower means the knowledge of any officer of any Loan Party or any of
its respective Subsidiaries, after due inquiry. 
 “Lender” is defined in the preamble. 

“LIBO Rate” means the three-month London Interbank Offered Rate for deposits in U.S. Dollars at approximately 11:00 a.m.
(London, England time), quoted by the Lender from the appropriate Bloomberg or Telerate page selected by the Lender (or any successor thereto or similar source determined by the Lender from time to time), which shall be that three-month London
Interbank Offered Rate for deposits in U.S. Dollars in effect two Business Days prior to the last Business Day of the relevant Fiscal Quarter, adjusted for any reserve requirement and any subsequent costs arising from a change in governmental
regulation, such rate to be rounded up to the nearest 1/16 of 1% and such rate to be reset quarterly as of the first Business Day of each Fiscal Quarter. If the Loan is advanced other than on the first Business Day of a Fiscal Quarter, the initial
LIBO Rate shall be that three-month London Interbank Offered Rate for deposits in U.S. Dollars in effect two Business Days prior to the date of the Loan, which rate shall be in effect until (and including) the last Business Day of the Fiscal Quarter
next ending. The Lender’s internal records of applicable interest rates shall be determinative in the absence of manifest error. 

“Lien” means any security interest, mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien
(statutory or otherwise), charge against or interest in property, or other priority or preferential arrangement of any kind or nature whatsoever, to secure payment of a debt or performance of an obligation. 

“Liquidity” means, at any time, an amount determined for Recro and its Subsidiaries on a consolidated basis equal to the sum
of unrestricted cash-on-hand and Cash Equivalent Investments of Recro and its Subsidiaries on a consolidated basis, to the extent held in a Controlled Account located in the United States. 

“Loan” is defined in Section 2.1. 

“Loan Documents” means, collectively, this Agreement, the Note, the Security Agreement, the Mortgage, the Warrant, each other
agreement, pursuant to which the Lender is granted a Lien to secure the Obligations (including any agreements entered into pursuant to Section 7.8), the Guarantee, and each other agreement, certificate, document or instrument delivered
in connection with any Loan Document, whether or not specifically mentioned herein or therein. 

  
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 “Loan Parties” means, collectively, the Borrower and the Guarantors, it being
understood that (i) the Surviving Entity shall become a Loan Party and execute the Assumption Agreement immediately upon consummation of the Merger and (ii) for purposes of Article VI, all references therein to the Loan Parties
shall include (A) the Companies and (B) Newco (assuming for such purpose that Newco was formed and the Asset and Liability Transfer occurred immediately prior to the execution of this Agreement). 

“Loan Request” means a Loan request and certificate duly executed by an Authorized Officer of the Borrower substantially in
the form of Exhibit B hereto. 
 “Material Adverse Effect” means a material adverse effect on (i) the
business, condition (financial or otherwise), operations, performance, properties or prospects of Recro or the Borrower, or the Loan Parties, taken as a whole, (ii) the rights and remedies of the Lender under any Loan Document or (iii) the
ability of any Loan Party to perform its Obligations under any Loan Document. 
 “Material Agreements” means (i) each
contract or agreement to which any Loan Party or any of its respective Subsidiaries is a party involving aggregate payments of more than $375,000, whether such payments are being made by or to such Loan Party or its applicable Subsidiary,
(ii) the Covered Agreements and (iii) all other contracts or agreements, individually or in the aggregate, material to the business, operations, assets, prospects, conditions (financial or otherwise), performance or liabilities of the Loan
Parties and their applicable Subsidiaries. 
 “Maturity Date” means the date that is the five (5) year anniversary of
the Closing Date. 
 “Meloxicam Assets and Liabilities” is defined in Section 7.16(a). 

“Merger” shall have the meaning assigned to such term in the preamble hereof. 

“Moody’s” means Moody’s Investors Service, Inc. 

“Mortgage” means the Deed to Secure Debt, Assignment of Leases and Rents, Security Agreement and Fixture Filing, dated as of
the Closing Date, between Borrower and the Lender, substantially in the form of Exhibit G hereto, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“Mortgaged Property” means the real property in Georgia to be owned by the Borrower upon the Merger, described more fully on
Schedule 1.01(a) hereto. 
 “NDA” means a new drug application filed with the FDA pursuant to section 505(b) of the
FD&C Act, along with all supplements and amendments thereto, and any similar application for marketing authorization required by any country, jurisdiction or Governmental Authority other than the U.S. 

“Net Asset Sales Proceeds” means, with respect to the Disposition (other than Dispositions of inventory permitted by
Section 8.8(i)) after the Closing Date by any Loan Party or any of its respective Subsidiaries to any Person of any assets of any Loan Party or any of its respective Subsidiaries, the excess of gross cash proceeds received by any Loan
Party or its 

  
 14 








 
respective Subsidiaries from such Disposition over all reasonable and customary costs and expenses incurred in connection with such Disposition in excess of $500,000, individually or in the
aggregate through the Termination Date, which have not been paid to Affiliates of the Borrower in connection therewith. 
 “Net
Casualty Proceeds” means, with respect to any Casualty Event, the amount of any insurance proceeds or condemnation awards received by any Loan Party or any of its respective Subsidiaries in connection with such Casualty Event in excess of
$500,000, individually or in the aggregate through the Termination Date (net of all reasonable and customary collection expenses thereof), including any legal or professional fees, but excluding any proceeds or awards required to be paid to a
creditor (other than the Lender) which holds a first priority Lien permitted by Section 8.3(e) on the property which is the subject of such Casualty Event. 

“Net Sales” means net sales, distribution income, service payments, royalty payments, license income, and other forms of
consideration made to the Borrower and its Subsidiaries related to all products and services (including all Products) determined in accordance with GAAP. Net Sales shall be determined in a manner consistent with the methodologies, practices and
procedures used in developing Recro’s audited financial statements. 
 “Non-Borrower Loan Party” means each Loan Party
that is not a Borrower Loan Party. 
 “Non-Excluded Taxes” means any Taxes other than the following Taxes imposed on or
with respect to a recipient of any payment to be made to or for the account of any Lender or required to be withheld or deducted from a payment to or for the account of any Lender (a) Taxes imposed on or measured by net income (however
denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Lender being organized under the laws of or having its principal office or applicable lending office located in the jurisdiction imposing
such Tax (or any political subdivision thereof) or (ii) Taxes imposed as a result of a present or former connection between such Lender and the jurisdiction imposing such Tax (other than connections arising from a Lender having executed,
delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transactions pursuant to or enforced any Loan Document, except any such Taxes imposed with
respect to an assignment of the Loans), (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan pursuant to a law in effect on
the date on which (i) such Lender acquires such interest in the Loan or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 4.3, amounts with respect to such Taxes were payable
either to such Lender’s assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to a Lender’s failure to comply with Section 4.3(e)
or to the extent that such documentation fails to establish a complete exemption from applicable withholding Taxes, other than, in either case, due to a Change in Law after the date of this Agreement, and (d) any U.S. federal withholding Taxes
imposed under FATCA. 
 “Note” means a promissory note of the Borrower payable to the Lender, in the form of Exhibit
A hereto (as such promissory note may be amended, endorsed or otherwise modified from time to time), evidencing the aggregate Indebtedness of the Borrower to the Lender resulting from the outstanding amount of the Loan, and also means all other
promissory notes accepted from time to time in substitution therefor or renewal thereof. 

  
 15 








 “Obligations” means all obligations (monetary or otherwise, whether absolute or
contingent, matured or unmatured) of the Loan Parties arising under or in connection with a Loan Document and the principal of and premium, if any, and interest (including interest accruing during the pendency of any proceeding of the type described
in Section 9.1(i) or Section 9.1(j), whether or not allowed in such proceeding) on the Loan. 

“Observer” is defined in Section 7.14. 

“OFAC” means the Office of Foreign Assets Control of the United States Department of the Treasury. 

“Organic Document” means, relative to any Loan Party or any of its Subsidiaries, its certificate of incorporation, by-laws,
certificate of partnership, partnership agreement, certificate of formation, limited liability agreement, operating agreement and all shareholder agreements, voting trusts and similar arrangements applicable to such Person’s Capital Securities.

 “Other Administrative Proceeding” means any administrative proceeding relating to a dispute involving a patent office or
other relevant intellectual property registry which relates to validity, opposition, revocation, ownership or enforceability of the relevant Intellectual Property. 

“Other Taxes” means any and all stamp, documentary or similar Taxes, or any other excise or property Taxes or similar levies
that arise on account of any payment made or required to be made under any Loan Document or from the execution, delivery, registration, recording or enforcement of any Loan Document. 

“Paladin Agreement” means the License and Distribution Agreement, by and between Paladin and Daravita, dated as of
May 12, 2011, as amended. 
 “Party” means each of the Loan Parties and the Lender, individually. 

“Patent” means any patent rights of any kind, patent, patent application or invention disclosure, including all divisions,
continuations, continuations in-part, provisionals, continued prosecution applications, substitutions, reissues, reexaminations, inter partes review, renewals, extensions, adjustments, restorations, supplemental protection certificates and other
additions in connection therewith, whether in or related to the United States or any foreign country or other jurisdiction. 

“Patent Security Agreement” means any Patent Security Agreement executed and delivered by any Loan Party in substantially the
form of Exhibit A to the Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“Permits” means all Regulatory Authorizations, permits, licenses, registrations, certificates, orders, approvals,
authorizations, consents, waivers, franchises, variances and similar rights issued by or obtained from any Governmental Authority or any other Person, including, without limitation, those relating to Environmental Laws (including Environmental
Permits). 

  
 16 








 “Permitted Subordinated Indebtedness” means Indebtedness incurred after the
Closing Date by any Loan Party or any of its respective Subsidiaries that is (i) subordinated to the Obligations and all other Indebtedness owing from the Loan Parties and their respective Subsidiaries to the Lender pursuant to a written
subordination agreement satisfactory to the Lender in its sole discretion and (ii) in an amount and on terms approved by the Lender in its sole discretion. 

“Permitted Tax Distributions” means any dividends and distributions made by any Loan Party (other than Recro) to its
shareholders that are Loan Parties in an amount sufficient to pay such shareholders’ estimated federal, state and local income tax liability associated with ownership of equity interests in such Loan Party. 

“Person” means any natural person, corporation, limited liability company, partnership, joint venture, association, trust or
unincorporated organization, Governmental Authority or any other legal entity, whether acting in an individual, fiduciary or other capacity. 

“PHSA” means the Public Health Service Act (or any successor thereto), as amended from time to time, and the rules,
regulations, guidelines, guidance documents and compliance policy guides issued or promulgated thereunder. 
 “Privacy
Laws” means all applicable security and privacy standards regarding protected health information under (i) the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic
and Clinical Health Act of 2009, including the regulations promulgated thereunder (collectively “HIPAA”) and (ii) any applicable state privacy laws. 

“Product” means any current or future service or product researched, designed, developed, manufactured, licensed, marketed,
sold, performed, distributed or otherwise commercialized by the Borrower or any of its Affiliates, including any such product in development or which may be developed. 

“Product Agreement” means each agreement, license, document, instrument, interest (equity or otherwise) or the like under
which one or more parties grants or receives any right, title or interest with respect to any Product Development and Commercialization Activities in respect of one or more Products specified therein or to exclude third parties from engaging in, or
otherwise restricting any right, title or interest as to any Product Development and Commercialization Activities with respect thereto, including each contract or agreement with suppliers, manufacturers, pharmaceutical companies, distributors,
clinical research organizations, hospitals, group purchasing organizations, wholesalers, pharmacies or any other Person related to any such entity. 

“Product Authorizations” means any and all approvals, licenses, notifications, registrations or authorizations of any
Governmental Authority necessary for the testing, manufacture, development, distribution, use, storage, import, export, transport, promotion, marketing, sale or other commercialization of a Product in any country or jurisdiction, including without
limitation registration and listing, INDs, NDAs and similar applications. 

  
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 “Product Development and Commercialization Activities” means, with respect to
any Product, any combination of research, development, manufacture, import, use, sale, importation, storage, labeling, marketing, promotion, supply, distribution, testing, packaging, purchasing or other commercialization activities, receipt of
payment in respect of any of the foregoing, or like activities the purpose of which is to commercially exploit such Product 

“Purchase Money Indebtedness” means Indebtedness (1) consisting of the deferred purchase price for equipment incurred in
connection with the acquisition of such equipment, where the amount of such Indebtedness does not exceed the greater of (a) the cost of the equipment being financed and (b) the fair market value of such equipment; and (2) incurred to
finance such acquisition by any Loan Party or any of its respective Subsidiaries of such equipment. 
 “Qualified Capital
Securities” shall mean any Capital Securities that are not Disqualified Capital Securities. 
 “Receiving Party”
means the Party receiving Confidential Information. 
 “Recipients” is defined in Section 10.14. 

“Recovered Amount” means, as of the time any Buy-Out Premium Amount is paid pursuant to Section 3.6 hereof,
(i) in the event that the Loan is, or is required to be, repaid or prepaid in whole, the aggregate amount of all principal and interest payments previously paid to the Lender by the Borrower as of the Fiscal Quarter last ended and all Buy-Out
Premium Amounts (if any) previously paid to the Lender by the Borrower, and (ii) in the event that the Loan is repaid or prepaid in part, the aggregate principal amount of the Loan so repaid or prepaid and any interest payments previously paid
to the Lender by the Borrower in respect of such principal amount of the Loan. 
 “Regulatory Agencies” means any
Governmental Authority that is concerned with the use, control, safety, efficacy, reliability, manufacturing, marketing, distribution, sale or other Product Development and Commercialization Activities relating to any Product, including CMS, FDA,
DEA, and all similar agencies in other jurisdictions, and includes Standard Bodies. 
 “Regulatory Authorizations” means
all approvals, clearances, notifications, authorizations, orders, exemptions, registrations, certifications, licenses and permits granted by, submitted to or filed with any Regulatory Agencies, including all Product Authorizations. 

“Related Parties” means the partners, directors, officers, employees, agents, trustees, administrators, managers, advisors
and representatives of the Loan Parties and their respective Subsidiaries. 
 “Release” means any releasing, disposing,
discharging, injecting, spilling, leaking, leaching, pumping, pouring, dumping, depositing, emitting, escaping, emptying, seeping, dispersal, migrating or placing, including movement through, into or upon the environment or any natural or man-made
structure. 

  
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 “Restricted Assignee” means (i) any Person who competes with any Loan Party
or any of its Subsidiaries in the field of drug development and manufacture or any similar business, and (ii) any pharmaceutical company that is a customer of the Borrower or its Subsidiaries or could reasonably be expected to become a customer
of the Borrower or its Subsidiaries. 
 “Restricted Payment” means (i) the declaration or payment of any dividend on,
or the making of any payment or distribution on account of, or setting apart assets for a sinking or other analogous fund for the purchase, redemption, defeasance, retirement or other acquisition of, any class of Capital Securities of any Loan Party
or any of its Subsidiaries or any warrants, options or other right or obligation to purchase or acquire any such Capital Securities, whether now or hereafter outstanding, or (ii) the making of any other distribution in respect of such Capital
Securities, in each case either directly or indirectly, whether in cash, property or obligations of any Loan Party or any of its Subsidiaries or otherwise. 

“Revenue Base” means, with respect to any period, the Net Sales for such period. 

“Ritalin Agreement” means the Development, License and Supply Agreement by and between Novartis Pharmaceutical Corporation
and Daravita, dated as of December 17, 1997, as amended. 
 “S&P” means Standard & Poor’s Rating
Services, a division of The McGraw-Hill Companies, Inc. 
 “Sanctions” means any international economic sanction
administered or enforced by the United States Government (including, without limitation, OFAC), the United Nations Security Council, the European Union, Her Majesty’s Treasury or other relevant sanctions authority. 

“SCP Vitalife” means, collectively, SCP Vitalife Partners, II, L.P., and SCP Vitalife Partners (Israel) II, L.P. 

“SEC” means the Securities and Exchange Commission. 

“Security Agreement” means the Pledge and Security Agreement executed and delivered by each of the parties thereto,
substantially in the form of Exhibit E hereto, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“Solvent” means, with respect to any Person on a particular date, that on such date (i) the fair value of the property
of such Person is greater than the total amount of liabilities, including contingent liabilities, of such Person, (ii) the present fair saleable value of the assets of such Person is not less than the amount that will be required to pay the
probable liability of such Person on its debts as they become absolute and matured, (iii) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities
mature, (iv) such Person is not engaged in a business or a transaction, and is not about to engage in a business or a transaction, for which the property of such Person would constitute an unreasonably small capital and (v) such Person has
not executed this Agreement or 

  
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any other Loan Document, or made any transfer or incurred any obligations hereunder or thereunder, with actual intent to hinder, delay or defraud either present or future creditors. The amount of
contingent liabilities at any time shall be computed as the amount that, in light of all the facts and circumstances existing at such time, can reasonably be expected to become an actual or matured liability. 

“Standard Bodies” means any of the organizations that create, sponsor or maintain safety, quality or other standards,
including ISO, ANSI, CEN and SCC and the like. 
 “Subsidiary” means, with respect to any Person, any other Person of which
more than 50% of the outstanding Voting Securities of such other Person (irrespective of whether at the time Capital Securities of any other class or classes of such other Person shall or might have voting power upon the occurrence of any
contingency) is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more other Subsidiaries of such Person, or by one or more other Subsidiaries of such Person. Unless the context otherwise specifically
requires, the term “Subsidiary” shall be a reference to a Subsidiary of Recro. 
 “Surviving Entity” shall have
the meaning set forth in the preamble hereof. 
 “Synthetic Lease” means, as applied to any Person, any lease (including
leases that may be terminated by the lessee at any time) of any property (whether real, personal or mixed) (i) that is not a capital lease in accordance with GAAP and (ii) in respect of which the lessee retains or obtains ownership of the
property so leased for federal income tax purposes, other than any such lease under which that Person is the lessor. 

“Taxes” means all income, stamp or other taxes, duties, levies, imposts, charges, assessments, fees, deductions or
withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority, and all interest, penalties or similar liabilities with respect thereto. 

“Termination Date” means the earlier of (i) April 21, 2015, if the Closing Date has not occurred on or prior to
such date, and (ii) the date on which all Obligations have been paid in full in cash and the Commitment shall have terminated. 

“Third Party” means any Person other than any Loan Party or any Subsidiary thereof. 

“Trademark” means any trademark, service mark, trade name, logo, symbol, trade dress, domain name, corporate name or other
indicator of source or origin or identifies the goods and services of one provider from another, and all applications and registrations therefor, together with all of the goodwill associated therewith. 

“Trademark Security Agreement” means any Trademark Security Agreement executed and delivered by any Loan Party substantially
in the form of Exhibit B to the Security Agreement, as amended, supplemented, amended and restated or otherwise modified from time to time. 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York; provided that if,
with respect to any financing statement or by reason of any 

  
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provisions of law, the perfection or the effect of perfection or non-perfection of the security interests granted to the Lender pursuant to the applicable Loan Document is governed by the Uniform
Commercial Code as in effect in a jurisdiction of the United States other than New York, then “UCC” means the Uniform Commercial Code as in effect from time to time in such other jurisdiction for purposes of the provisions of each Loan
Document and any financing statement relating to such perfection or effect of perfection or non-perfection. 
 “United
States” or “U.S.” means the United States of America, its fifty states and the District of Columbia. 

“Verapamil Agreement” means the Amended and Restated License and Supply Agreement by and between Watson Laboratories and
Daravita, dated as of June 26, 2003, as amended. 
 “Verelan Agreement” means the License and Supply Agreement by and
between Kremers Urban Pharmaceuticals, Inc. and Daravita, dated as of January 1, 2014, as amended 
 “Voting
Securities” means, with respect to any Person, Capital Securities of any class or kind ordinarily having the power to vote for the election of directors, managers or other voting members of the governing body of such Person. 

“Warrant” means the Warrant, dated as of the Closing Date, and issued by Recro to the Lender in the form attached hereto as
Exhibit H. 
 “Zohydro Agreements” means the License Agreement by and between Zogenix, Inc. and Daravita, dated as
of November 27, 2012, as amended, and the Commercial Manufacture and Supply Agreement by and between Zogenix, Inc. and Daravita, dated as of November 2, 2012, as amended. 

SECTION 1.2 Use of Defined Terms. Unless otherwise defined or the context otherwise requires, terms for which meanings are provided in
this Agreement shall have such meanings when used in each other Loan Document and the schedules attached hereto. 
 SECTION 1.3
Cross-References. Unless otherwise specified, references in a Loan Document to any Article or Section are references to such Article or Section of such Loan Document, and references in any Article, Section or definition to any clause are
references to such clause of such Article, Section or definition. 
 SECTION 1.4 Financial Determinations. Unless otherwise
specified, all accounting terms used in each Loan Document shall be interpreted, and all accounting determinations and computations thereunder (including under Section 8.4 and the definitions used in such calculations) shall be made, in
accordance with GAAP, as in effect from time to time; provided that if either the Borrower or the Lender requests an amendment to any provision hereof to eliminate the effect of any change occurring after the date hereof in GAAP or the
application thereof on the operation of such provision, regardless of whether any such notice is given before or after such change in GAAP or the application thereof, then such provision shall be interpreted on the basis of GAAP in effect and
applied immediately before such change shall have become effective until such request shall have been withdrawn or such provision amended in accordance 

  
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herewith. Unless otherwise expressly provided, all financial covenants and defined financial terms shall be computed on a consolidated basis for the Loan Parties and their respective
Subsidiaries, in each case without duplication. 
 SECTION 1.5 Interpretation. The parties have participated jointly in the
negotiation and drafting of the Loan Documents. In the event an ambiguity or question of intent or interpretation arises, the Loan Documents shall be construed as if drafted jointly by the parties and no presumption or burden of proof shall arise
favoring or disfavoring any party by virtue of the authorship of any of the provisions of this Agreement. Except as otherwise expressly provided, the following rules of interpretation shall apply to the Loan Documents: (a) the definitions of
terms shall apply equally to the singular and plural forms of the terms defined; (b) wherever the context may require, any pronoun shall include the corresponding masculine, feminine, and neuter forms; (c) “including” and
“include” means including without limiting the generality of any description preceding such term, and, for purposes of each Loan Document, the parties hereto agree that the rule of ejusdem generis shall not be applicable to limit a general
statement, which is followed by or referable to an enumeration of specific matters, to matters similar to the matters specifically mentioned; (d) the word “will” shall be construed to have the same meaning and effect as the word
“shall”; (e) unless the context requires otherwise, any definition of or reference to any agreement, instrument, or other document herein shall be construed as referring to such agreement, instrument, or other document as from time to
time amended, restated, supplemented, or otherwise modified (subject to any restrictions on such amendments, supplements, or modifications set forth herein or therein) and shall include any appendices, schedules, exhibits, clarification letters,
side letters, and disclosure letters executed in connection therewith; (f) any reference to any Person shall be construed to include such Person’s successors and assigns to the extent permitted under the applicable documentation;
(g) any reference to any applicable law shall be construed as referring to such applicable law as amended from time to time; (h) “herein”, “hereof”, “hereto”, “hereunder” and similar terms contained
in any Loan Document refer to such Loan Document as a whole and not to any particular Section, paragraph or provision of such Loan Document; and (i) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts, and contract rights. All references in this Agreement to the schedules to this Agreement shall be deemed to refer to
the schedules set forth in the disclosure letter delivered to the Lender by the Borrower on the date hereof. 
 ARTICLE II 

COMMITMENT AND BORROWING PROCEDURES 

SECTION 2.1 Commitment. On the terms and subject to the conditions of this Agreement, the Lender agrees to make a term loan (the
“Loan”) to the Borrower on the Closing Date in an amount equal to (but not less than) the Commitment Amount; provided that the Lender shall not be obligated to make the Loan after the Termination Date. No amounts paid or
prepaid with respect to the Loan may be reborrowed. 
 SECTION 2.2 Borrowing Procedure. The Borrower shall irrevocably request that
the Loan be made by delivering to the Lender a Loan Request on or before 10:00 a.m. on a Business Day at least three Business Days prior to the proposed Closing Date. 

  
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 SECTION 2.3 Funding. After receipt of the Loan Request for the Loan, the Lender shall, on
the Closing Date and subject to the terms and conditions hereof, make the requested proceeds of the Loan available to the Borrower by wire transfer to the account the Borrower shall have specified in its Loan Request. 

SECTION 2.4 Reduction of the Commitment Amounts. The Commitment Amount shall automatically and permanently be reduced to zero on the
earlier of the Closing Date (after the funding of the Loan) and the Termination Date. 
 ARTICLE III 

REPAYMENTS, PREPAYMENTS, INTEREST AND FEES 

SECTION 3.1 Repayments and Prepayments; Application. The Borrower agrees that the Loan, and any fees or interest accrued or accruing
thereon, shall be repaid and prepaid solely in U.S. dollars pursuant to the terms of this Article III. 
 SECTION 3.2 Repayments
and Prepayments. The Borrower shall repay in full the unpaid principal amount of the Loan on the Maturity Date. Prior thereto, payments and prepayments of the Loan shall be made as set forth below. 

(a) Subject to the terms of Section 3.6 and Section 3.7, the Borrower shall have the right, with at
least three Business Days’ prior written notice to the Lender, at any time and from time to time to prepay any unpaid principal amount of the Loan, in whole or in part. 

(b) Within five Business Days of receipt by any Loan Party or any Subsidiary thereof of any (i) Net Casualty Proceeds or
(ii) Net Asset Sales Proceeds, the Borrower shall notify the Lender thereof. If requested by the Lender, the Borrower shall within five Business Days of such request make a mandatory prepayment of the Loan, in an amount equal to 100% of such
proceeds (or such lesser amount as the Lender may specify on the date of such request), to be applied to the outstanding principal amount of the Loan and the Borrower shall concurrently pay the accrued and unpaid interest on such amount;
provided, however, that no such payment shall be required on account of Net Casualty Proceeds that are intended to be reinvested in the ordinary course of the Loan Parties’ business within 180 days in replacement equipment or real
property used or useful in their business, so long as such proceeds are held in a deposit account subject to a perfected security interest of Lender; provided, further, that if such Net Casualty Proceeds have not in fact been so
re-invested at the expiration of such 180 day period than any such Net Casualty Proceeds shall be paid to Lender as provided herein at such time. 

(c) In the event that there shall be Excess Cash Flow for any Fiscal Quarter (commencing with Fiscal Quarter ending
June 30, 2015), Borrower shall, if requested by the Lender, no later than forty-five (45) days plus five (5) Business Days after the end of such Fiscal Quarter, prepay the unpaid principal amount of the Loan in an aggregate principal
amount equal to the Applicable Percent of such Excess Cash Flow (or any lesser amount requested by the Lender); provided that no payments under this Section 3.2(c) shall be subject to the premiums or exit fees due under
Section 3.6 and Section 3.7. 

  
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 (d) The Borrower shall repay the Loan in full immediately upon any acceleration
of the Maturity Date thereof pursuant to Section 9.2 or Section 9.3, unless, pursuant to Section 9.3, only a portion of the Loan is so accelerated (in which case the portion so accelerated shall be so repaid).

 SECTION 3.3 Interest Rate. During any applicable Interest Period, the outstanding balance on the Loan shall accrue interest during
such Interest Period at a rate per annum equal to the sum of (i) the Applicable Margin plus (ii) the higher of (x) the LIBO Rate for such Interest Period and (y) 1.00%. The interest rate shall be recalculated and, if necessary,
adjusted for each Interest Period, in each case pursuant to the terms hereof. 
 SECTION 3.4 Default Rate. At all times commencing
upon the date any Event of Default occurs, and continuing until such Event of Default is no longer continuing, the Applicable Margin shall be increased by 5% per annum. 

SECTION 3.5 Payment Dates. Interest accrued on the Loan shall be payable in cash, without duplication: 

(a) on the Maturity Date therefor; 

(b) on the date of any payment or prepayment, in whole or in part, of principal outstanding on such Loan on the principal
amount so paid or prepaid; 
 (c) on the last day of each Fiscal Quarter; provided that if such day is not a Business
Day, then such payment shall be made on the next succeeding Business Day; and 
 (d) on that portion of the Loan that is
accelerated pursuant to Section 9.2 or Section 9.3, immediately upon such acceleration. 
 Interest accrued on the Loan or other
monetary Obligations after the date such amount is due and payable (whether on the Maturity Date, upon acceleration or otherwise) shall be payable upon demand. 

SECTION 3.6 Buy-Out Premium. Any prepayment or repayment of the Loan in whole or in part on or prior to, or as a result of any
acceleration thereof pursuant to Article IX, on or prior to, the thirty-six (36) month anniversary of the Closing Date shall be accompanied by the payment of the Buy-Out Premium Amount. 

SECTION 3.7 Exit Fee. Any repayment or prepayment of the Loan, in whole or in part, after the thirty-six (36) month anniversary of
the Closing Date and (i) prior to the Maturity Date or (ii) as a result of any acceleration thereof pursuant to Article IX, shall in each case be accompanied by the payment of the Exit Fee Amount. 

  
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 SECTION 3.8 Commitment Fee. The Borrower shall pay to the Lender a fully earned,
non-refundable commitment fee of $1,000,000 on the Closing Date. 
 ARTICLE IV 

LIBO RATE AND OTHER PROVISIONS 

SECTION 4.1 Increased Costs, Etc. The Borrower agrees to reimburse the Lender for any increase in the cost to the Lender of, or any
reduction in the amount of any sum receivable by the Lender in respect of, the Lender’s Commitment and the making, continuation or maintaining of the Loan hereunder that may arise in connection with any Change in Law, except for such changes
with respect to increased capital costs and Taxes which are governed by Section 4.2 and Section 4.3, respectively. The Lender shall notify the Borrower in writing of the occurrence of any such event, stating the reasons
therefor and the additional amount required fully to compensate the Lender for such increased cost or reduced amount. Such additional amounts shall be payable by the Borrower directly to the Lender within five days of its receipt of such notice, and
such notice shall, in the absence of manifest error, be conclusive and binding on the Borrower; provided that the Borrower shall not be required to compensate Lender pursuant to this Section 4.1 for any increased costs incurred or
reductions suffered more than six months prior to the date that Lender notifies the Borrower of the Change in Law giving rise to such increased costs or reductions and to Lender’s intention to claim compensation therefor; provided
further that, if the Change in Law giving rise to such increased costs or reductions is retroactive, then the six month period referred to above shall be extended to include the period of retroactive effect thereof. 

SECTION 4.2 Increased Capital Costs. If any Change in Law affects or would affect the amount of capital required or expected to be
maintained by the Lender or any Person controlling the Lender, and the Lender determines (in good faith but in its sole and absolute discretion) that the rate of return on its or such controlling Person’s capital as a consequence of the
Commitment or the Loan made by it hereunder is reduced to a level below that which the Lender or such controlling Person could have achieved but for the occurrence of any such circumstance, then upon notice from time to time by the Lender to the
Borrower, the Borrower shall within five days following receipt of such notice pay directly to the Lender additional amounts sufficient to compensate the Lender or such controlling Person for such reduction in rate of return; provided that
the Borrower shall not be required to compensate Lender pursuant to this Section 4.2 for any reductions suffered more than six months prior to the date that Lender notifies the Borrower of the Change in Law giving rise to such reduction
and of Lender’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such reduction is retroactive, then the six month period referred to above shall be extended to include the
period of retroactive effect thereof. A statement of the Lender as to any such additional amount or amounts shall, in the absence of manifest error, be conclusive and binding on the Borrower. In determining such amount, the Lender may use any method
of averaging and attribution that it (in its sole and absolute discretion) shall deem applicable. 
 SECTION 4.3 Taxes. The Borrower
covenants and agrees as follows with respect to Taxes. 

  
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 (a) Any and all payments by the Borrower or any Guarantor under each Loan
Document shall be made without setoff, counterclaim or other defense, and free and clear of, and without deduction or withholding for or on account of, any Taxes, except as required by applicable law. In the event that any Taxes are imposed and
required to be deducted or withheld from any payment required to be made by the Borrower or any Guarantor to or on behalf of the Lender under any Loan Document, then: 

(i) if such Taxes are Non-Excluded Taxes, the amount of such payment shall be increased as may be necessary so that such
payment is made, after withholding or deduction for or on account of such Taxes, in an amount that is not less than the amount provided for in such Loan Document; and 

(ii) the Borrower or such Guarantor shall withhold the full amount of such Taxes from such payment (as increased pursuant to
clause (a)(i)) and shall pay such amount to the Governmental Authority imposing such Taxes in accordance with applicable law. 

(b) In addition, the Borrower shall pay all Other Taxes imposed to the relevant Governmental Authority imposing such Other
Taxes in accordance with applicable law. 
 (c) As promptly as practicable after the payment of any Taxes or Other Taxes, and
in any event within 45 days of any such payment being due, the Borrower shall furnish to the Lender a copy of an official receipt (or a certified copy thereof) evidencing the payment of such Taxes or Other Taxes. 

(d) The Borrower shall indemnify the Lender for any Non-Excluded Taxes and Other Taxes levied, imposed or assessed on the
Lender whether or not such Non-Excluded Taxes or Other Taxes are correctly or legally asserted by the relevant Governmental Authority. Promptly upon having knowledge that any such Non-Excluded Taxes or Other Taxes have been levied, imposed or
assessed, and promptly upon notice thereof by the Lender, the Borrower shall pay such Non-Excluded Taxes or Other Taxes directly to the relevant Governmental Authority (provided that the Lender shall not be under any obligation to provide any
such notice to the Borrower). With respect to indemnification for Non-Excluded Taxes and Other Taxes actually paid by the Lender or the indemnification provided in the immediately preceding sentence, such indemnification shall be made within 30 days
after the date the Lender makes written demand therefor. In addition, the Borrower shall indemnify the Lender for any incremental Taxes that may become payable by the Lender as a result of any failure of the Borrower to pay any Taxes when due to the
appropriate Governmental Authority or to deliver to the Lender, pursuant to clause (c), documentation evidencing the payment of Non-Excluded Taxes or Other Taxes. The Borrower acknowledges that any payment made to the Lender or to any Governmental
Authority in respect of the indemnification obligations of the Borrower provided in this clause shall constitute a payment in respect of which the provisions of clause (a) and this clause shall apply. 

  
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 (e) If the Lender that is entitled to an exemption from or reduction of
withholding Tax with respect to payments made under any Loan Document, it shall deliver to the Borrower, at the time or times reasonably requested by the Borrower, such properly completed and executed documentation reasonably requested by the
Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. Additionally, the Lender, if reasonably requested by the Borrower, shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Borrower as will enable the Borrower to determine whether or not the Lender is subject to backup withholding or information reporting requirements. 

Without limiting the generality of the foregoing: 

(i) If the Lender is a U.S. Person it shall deliver to the Borrower on or prior to the date on which the Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), executed originals of IRS Form W-9 certifying that the Lender is exempt from U.S. federal backup withholding tax; 

(ii) If the Lender is not a U.S. Person it shall, to the extent it is legally entitled to do so, deliver to the Borrower (in
such number of copies as shall be requested by the Borrower) on or prior to the date on which the Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), whichever of the following
is applicable: 
 (1) in the case of a Lender claiming the benefits of an income tax treaty to which the United States is a party
(x) with respect to payments of interest under any Loan Document, executed originals of IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “interest” article of
such tax treaty and (y) with respect to any other applicable payments under any Loan Document, IRS Form W-8BEN or W-8BEN-E establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the “business
profits” or “other income” article of such tax treaty; 
 (2) executed originals of IRS Form W-8ECI; 

(3) in the case of a Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a
certificate, substantially in the form of Exhibit M-1 to the effect that such Lender is not a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of the Borrower within the meaning of
Section 881(c)(3)(B) of the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (a “U.S. Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN or W-8BEN-E;
or 

  
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 (4) to the extent a Lender is not the beneficial owner, executed originals of IRS Form W-8IMY,
accompanied by IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance Certificate substantially in the form of Exhibit M-2 or Exhibit M-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as
applicable; provided that if the Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate
substantially in the form of Exhibit M-4 on behalf of each such direct and indirect partner; 
 (iii) If the Lender is not a
U.S. Person it shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the Borrower) on or prior to the date on which the Lender becomes a Lender under this Agreement (and from
time to time thereafter upon the reasonable request of the Borrower), executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together
with such supplementary documentation as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required to be made; and 

(iv) If a payment made to the Lender under any Loan Document would be subject to U.S. federal withholding Tax imposed by FATCA
if the Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the Lender shall deliver to the Borrower at the time or times
prescribed by law and at such time or times reasonably requested by the Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably
requested by the Borrower as may be necessary for the Borrower to comply with their obligations under FATCA and to determine that the Lender has complied with the Lender’s obligations under FATCA or to determine the amount to deduct and
withhold from such payment. Solely for purposes of this clause (iv), “FATCA” shall include any amendments made to FATCA after the date of this Agreement. 

Each Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any
respect, it shall update such form or certification or promptly notify the Borrower in writing of its legal inability to do so. 

(f) If the Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to
which it has been indemnified pursuant to this Section 4.3 (including by the payment of additional amounts pursuant to Section 4.3(a)(1), it shall pay to the Borrower an amount equal to such refund (but only to the extent of indemnity
payments made under this Section with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of the Lender 

  
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and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). The Borrower, upon the request of the Lender, shall repay to the Lender the
amount paid over pursuant to this Section 4.3(f) (plus any penalties, interest or other charges imposed by the relevant taxation authority) in the event that the Lender is required to repay such refund to such Governmental Authority.
Notwithstanding anything to the contrary in this Section 4.3(f), in no event will the Lender be required to pay any amount to the Borrower pursuant to this Section 4.3(f) the payment of which would place the Lender in a less favorable net
after-Tax position than the Lender would have been if the Tax subject to indemnification had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts giving rise to such refund had never been paid. This
paragraph shall not be construed to require the Lender to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the Borrower or any other Person. 

(g) Each party’s obligations under this Section 4.3 shall survive any assignment of rights by, or the replacement of
the Lender, termination of this Agreement and the payment in full of the Obligations. 
 SECTION 4.4 Payments, Computations; Proceeds of
Collateral, Etc. 
 (a) Unless otherwise expressly provided in a Loan Document, all payments by the Borrower pursuant to
each Loan Document shall be made without setoff, deduction or counterclaim not later than 11:00 a.m. on the date due in same day or immediately available funds to such account as the Lender shall specify from time to time by notice to the
Borrower. Funds received after 11:00 a.m. on any day shall be deemed to have been received by the Lender on the next succeeding Business Day. All interest and fees shall be computed on the basis of the actual number of days (including the first day
but excluding the last day) occurring during the period for which such interest or fee is payable over a year comprised of 360 days. Payments due on other than a Business Day shall be made on the next succeeding Business Day and such extension
of time shall be included in computing interest and fees in connection with that payment. 
 (b) All amounts received as a
result of the exercise of remedies under the Loan Documents (including from the proceeds of collateral securing the Obligations) or under applicable law shall be applied upon receipt to the Obligations as follows: (i) first, to the payment in
full in cash of all interest (including interest accruing after the commencement of a proceeding in bankruptcy, insolvency or similar law, whether or not permitted as a claim under such law) and fees owing under the Loan Documents, and all costs and
expenses owing to the Lender pursuant to the terms of the Loan Documents, until paid in full in cash, (ii) second, after payment in full in cash of the amounts specified in clause (b)(i), to the payment of the principal amount of
the Loan then outstanding, (iii) third, after payment in full in cash of the amounts specified in clauses (b)(i) and (b)(ii), to the payment of all other Obligations owing to the Lender, and (iv) fourth, after payment in full
in cash of the amounts specified in clauses (b)(i) through (b)(iii), and following the Termination Date, to the Borrower or any other Person lawfully entitled to receive such surplus. 

  
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 SECTION 4.5 Setoff. The Lender shall, upon the occurrence and during the continuance of
any Default described in clauses (i) through (iv) of Section 9.1(i) or Section 9.1(j) or, upon the occurrence and during the continuance of any other Event of Default, have the right to appropriate and
apply to the payment of the Obligations owing to it (whether or not then due), and (as security for such Obligations) the Borrower hereby grants to the Lender a continuing security interest in, any and all balances, credits, deposits, accounts or
moneys of the Borrower then or thereafter maintained with or on behalf of the Lender. The Lender agrees promptly to notify the Borrower after any such appropriation and application made by the Lender; provided that the failure to give such
notice shall not affect the validity of such setoff and application. The rights of the Lender under this Section are in addition to other rights and remedies (including other rights of setoff under applicable law or otherwise) which the Lender may
have. 
 SECTION 4.6 LIBO Rate Not Determinable. If prior to the commencement of any Interest Period, adequate and reasonable means
do not exist for ascertaining the LIBO Rate for such Interest Period, then the Lender shall give notice thereof to the Borrower as promptly as practicable. In the event of any such determination, the Loan shall, until the Lender has advised the
Borrower that the circumstances giving rise to such notice no longer exist, bear interest at the interest rate in effect for the immediately preceding Interest Period. 

ARTICLE V 
 CONDITIONS TO MAKING
THE LOANS 
 Notwithstanding anything to the contrary contained herein, (i) all references to the Loan Parties in this Article V shall be deemed to
include the Surviving Entity and its Subsidiaries (including, without limitation, Newco) and (ii) all references to the Borrower in this Article V shall be deemed to include the Surviving Entity. 

SECTION 5.1 Credit Extensions. The obligation of the Lender to make the Loan shall be subject to the execution and delivery of this
Agreement by the parties hereto prior to the Closing Date, the delivery of a Loan Request as required pursuant to Section 2.3, and the satisfaction on the Closing Date of each of the conditions precedent set forth below in this Article
V. 
 SECTION 5.2 Secretary’s Certificate, Etc. The Lender shall have received from each Loan Party, (i) a copy of a good
standing certificate, dated a date reasonably close to the Closing Date from its jurisdiction of formation, for each such Person and (ii) a certificate, dated as of the Closing Date, duly executed and delivered by such Person’s Secretary
or Assistant Secretary, managing member or general partner, as applicable, as to: 
 (a) resolutions of each such
Person’s Board of Directors (or other managing body, in the case of other than a corporation) then in full force and effect authorizing the execution, delivery and performance of each Loan Document to be executed by such Person and the
transactions contemplated hereby and thereby; 
 (b) the incumbency and signatures of those of its officers, managing member
or general partner, as applicable, authorized to act with respect to each Loan Document to be executed by such Person; and 

(c) the full force and validity of each Organic Document of such Person and copies thereof; 

  
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 upon which certificates the Lender may conclusively rely until it shall have received a further certificate of
the Secretary, Assistant Secretary, managing member or general partner, as applicable, of any such Person canceling or amending the prior certificate of such Person. 

SECTION 5.3 Closing Certificate. The Lender shall have received a Closing Certificate, dated as of the Closing Date and duly executed
and delivered by an Authorized Officer of the Borrower, in which certificate the Borrower shall agree and acknowledge that the statements made therein shall be deemed to be true and correct representations and warranties of the Borrower as of such
date, and, at the time such certificate is delivered, such statements shall in fact be true and correct, and such statements shall include that (i) the representations and warranties set forth in each Loan Document (A) were true and
correct in all respects as of the date when made and are true and correct in all respects at and as of the Closing Date as if made at and as of the Closing Date (in the case of any representation or warranty qualified by materiality or Material
Adverse Effect), or (B) were true and correct in all material respects as of the date when made and are true and correct in all material respects at and as of the Closing Date as if made at and as of the Closing Date (in the case of any
representation or warranty not qualified by materiality or Material Adverse Effect), in each case of clauses (A) and (B) above, before and after giving effect to the making of the Loan, the application of the proceeds thereof, and the
consummation of the Acquisition and the Merger, (ii) to Borrower’s knowledge, and in reliance upon the representations and warranties provided to Recro in the Acquisition Agreement (but other than such representations and warranties that
the Borrower has knowledge of being false or inaccurate), the representations and warranties set forth in the Acquisition Agreement were true and correct in all material respects as of the date when made and are true and correct in all material
respects as of the Closing Date, (iii) no Default shall have then occurred and be continuing, or would result from the Loan to be advanced on the Closing Date or the consummation of the Acquisition and the Merger on the Closing Date, and
(iv) all of the conditions set forth in this Article V have been satisfied. All documents and agreements required to be appended to the Closing Certificate, if any, shall be in form and substance reasonably satisfactory to the Lender,
shall have been executed and delivered by the requisite parties, and shall be in full force and effect. 
 SECTION 5.4 Payment of
Outstanding Indebtedness, Etc. All Indebtedness identified in Schedule 8.2(b), together with all interest, all prepayment premiums and all other amounts due and payable with respect thereto, shall have been paid in full from the proceeds
of the Loan and the commitments in respect of such Indebtedness shall have been terminated, and all Liens securing payment of any such Indebtedness shall have been released and the Lender shall have received all Uniform Commercial Code Form UCC-3
termination statements or other instruments (including customary payoff letters) as may be suitable or appropriate in connection therewith. 

SECTION 5.5 Delivery of Note. The Lender shall have received a Note, dated the Closing Date, duly executed and delivered by an
Authorized Officer of the Borrower. 

  
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 SECTION 5.6 Financial Information, Etc. The Lender shall have received: 

(a) prior to the date hereof, management prepared consolidated financial statements of the Business for each of: (i) the
nine month period ending December 31, 2013, reviewed by PricewaterhouseCoopers LLP and (ii) the twelve month period ending December 31, 2014; 

(b) prior to the date hereof, audited financial statements of Recro for each of the fiscal years ended December 31,
2011, December 31, 2012 and December 31, 2013; 
 (c) prior to the date hereof, unaudited consolidated balance
sheets of the Business for December 31, 2013 and December 31, 2014 for the twelve months then ended, together with the related consolidated statements of operations, and Recro and its Subsidiaries for each fiscal quarter ended after
December 31, 2013, together with the related consolidated statement of operations, shareholder’s equity and cash flows for the twelve months then ended; and 

(d) such other financial information as to the Companies and their Subsidiaries, Recro and its Subsidiaries and the Borrower
and its Subsidiaries and the respective businesses, assets and liabilities of any of the foregoing as the Lender may reasonably request. 

SECTION 5.7 Compliance Certificate. The Lender shall have received an initial Compliance Certificate on a pro forma basis as if the
Loan had been made as of December 31, 2014 (and after giving effect to the consummation of the Acquisition and the Merger) and as to such items therein as the Lender reasonably requests, dated the Closing Date, duly executed (and with all
schedules thereto duly completed) and delivered by the chief financial or accounting Authorized Officer of the Borrower. 
 SECTION 5.8
Solvency, Etc. The Lender shall have received a solvency certificate duly executed and delivered by the chief financial or accounting Authorized Officer of each Loan Party, dated as of the Closing Date, in form and substance satisfactory to
the Lender. 
 SECTION 5.9 Guarantee and Supplement to Guarantee. (i) The Lender shall have received on the date hereof an
executed counterpart of the Guarantee, dated as of the date hereof, duly executed and delivered by Recro; and (ii) following the consummation of the Merger on the Closing Date, the Lender shall have received on the Closing Date an executed
supplement to the Guarantee (in substantially the form of Annex I to the Guarantee), dated as of the Closing Date, duly executed and delivered by each Loan Party other than Recro. 

SECTION 5.10 Security Agreement and Supplement to Security Agreement. The Lender shall have received (i) executed counterparts of
the Security Agreement, dated as of the Closing Date, duly executed and delivered by each Loan Party other than the Surviving Entity and Newco and (ii) following the consummation of the Merger on the Closing Date, an executed supplement to the
Security Agreement (in substantially the form of Annex I to the Security Agreement), dated as of the Closing Date, duly executed and delivered by the Surviving Entity and Newco, together with (in each case of clauses (i) and (ii)): 

(a) certificates (in the case of Capital Securities that are certificated securities (as defined in the UCC)) evidencing all of
the issued and outstanding Capital Securities 

  
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owned by any Loan Party, which certificates in each case shall be accompanied by undated instruments of transfer duly executed in blank, or, in the case of Capital Securities that are
uncertificated securities (as defined in the UCC), confirmation and evidence satisfactory to the Lender that the security interest therein has been transferred to and perfected by the Lender in accordance with Articles 8 and 9 of the UCC and all
laws otherwise applicable to the perfection of the pledge of such Capital Securities; 
 (b) financing statements suitable in
form for naming each Loan Party (including, following consummation of the Merger on the Closing Date, Newco) as a debtor and the Lender as the secured party, or other similar instruments or documents to be filed under the UCC of all jurisdictions as
may be necessary or, in the opinion of the Lender, desirable to perfect the security interests of the Lender pursuant to the Security Agreement; 

(c) UCC Form UCC-3 termination statements necessary to release all Liens and other rights of any Person (i) in any assets
of any Loan Party, and (ii) securing any of the Indebtedness identified in Schedule 8.2(b), in each case, other than the Liens described in Section 8.3(c), together with such other UCC Form UCC-3 termination statements as the
Lender may reasonably request from each Loan Party; and 
 (d) landlord access agreements and bailee letters in form and
substance satisfactory to the Lender from such landlords to any Loan Party as may be reasonably requested by the Lender and each other Person that has possession of any Collateral (as defined in the Security Agreement). 

SECTION 5.11 Intellectual Property Security Agreements. The Lender shall have received a Patent Security Agreement, a Copyright
Security Agreement and a Trademark Security Agreement, as applicable, each dated as of the Closing Date, duly executed and delivered by each Loan Party that, pursuant to the Security Agreement, is required to provide such intellectual property
security agreements to the Lender. 
 SECTION 5.12 Opinions of Counsel. The Lender shall have received opinions, dated the Closing
Date and addressed to the Lender, from 
 (a) Pepper Hamilton LLP, counsel to the Loan Parties, in form and substance
reasonably satisfactory to the Lender; and 
 (b) local counsel to the Loan Parties in the state of Georgia in form and
substance, and from counsel, reasonably satisfactory to the Lender. 
 SECTION 5.13 Mortgaged Property. The Lender shall have
received, in respect of the Mortgaged Property, a Mortgage, dated as of the Closing Date, and duly executed and delivered by an Authorized Officer of Borrower, which Mortgage shall be substantially in the form of Exhibit G hereto, and (i)a
mortgagee’s title insurance policy or marked up unconditional binder for such insurance, effective as of the Closing Date, together with a current ALTA survey thereof and a surveyor’s certificate, in form reasonably satisfactory to the
Lender, provided that such policy shall (A) be in an amount reasonably satisfactory to the Lender with respect to the Mortgaged Property covered thereby but not less than the fair market value of the Mortgaged


  
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Property covered thereby; (B) insure that, as of the Closing Date, the Mortgage insured thereby creates a valid first Lien on such Mortgaged Property free and clear of all defects and
encumbrances, except as disclosed in the Mortgage or as permitted by Section 8.3; (C) name the Lender as the insured thereunder; (D) be in form reasonably satisfactory to the Lender; (E) contain such endorsements,
coinsurance, reinsurance and affirmative coverage as the Lender may reasonably request; and (F) be issued by First American Title Insurance Company or such other national title company or companies reasonably satisfactory to the Lender
(including any such title companies acting as co-insurers or reinsurers, at the option of the Lender); (ii) evidence satisfactory to it that all premiums in respect of such policy, all charges for mortgage recording tax, and all related
expenses, if any, have been paid or duly provided for; and (iii) legal opinions from local counsel in the jurisdiction where the Mortgaged Property is situated and from counsel in the jurisdiction where the owner of the Mortgaged Property is
organized relating to the matters described above, which opinions shall be in form and substance reasonably satisfactory to the Lender. 

SECTION 5.14 Flood Determinations; Flood Insurance. The Lender shall have received a completed Federal Emergency Management Agency
Standard Flood Hazard Determination certified to the Lender in respect of the Mortgaged Property and, if such Mortgaged Property is located in an area identified as an area having special flood hazards, a policy of flood insurance in amounts
reasonably acceptable to the Lender. 
 SECTION 5.15 Insurance. The Lender shall have received certified copies of the insurance
policies (or binders in respect thereof), from one or more insurance companies satisfactory to the Lender, evidencing coverage required to be maintained pursuant to each Loan Document, with the Lender named as loss payee or additional insured, as
applicable. 
 SECTION 5.16 Closing Fees, Expenses, Etc. The Lender shall have received for its own account all fees, costs and
expenses due and payable pursuant to Section 10.3. 
 SECTION 5.17 Anti-Terrorism Laws. The Lender shall have received,
as applicable, all documentation and other information required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the U.S.A. Patriot Act. 

SECTION 5.18 Satisfactory Legal Form. All documents executed or submitted pursuant hereto by or on behalf of any Loan Party or any of
its respective Subsidiaries shall be satisfactory in form and substance to the Lender and its counsel. 
 SECTION 5.19 Commitment Fee,
Expenses, Etc. The Lender shall have received for its own account all fees, costs and expenses due and payable pursuant to Sections 3.8 and 10.3. 

SECTION 5.20 Corporate Structure and Capitalization. From the date hereof until the Closing Date, the capital and ownership structure
and the equity holder arrangements of Recro and the Borrower, before and after giving effect to the transactions contemplated by the Acquisition Agreement and the Merger, shall not have changed in any material respect (other than changes
contemplated by this Agreement and changes that are not adverse to the interests of the Lender, as determined by the Lender in its sole discretion). 

  
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 SECTION 5.21 [Intentionally Omitted.] 

SECTION 5.22 Governmental and Third Party Approvals. The Loan Parties shall have received all material governmental, shareholder and
third party consents and approvals necessary in connection with the Merger, the transactions contemplated by this Agreement, the Acquisition Agreement and the other transactions contemplated hereby and thereby and all applicable waiting periods
shall have expired without any action being taken by any Person that could reasonably be expected to restrain, prevent or impose any material adverse conditions on the Loan Parties or such other transactions or that could seek to threaten any of the
foregoing, and no law or regulation shall be applicable which could reasonably be expected to have such effect. 
 SECTION 5.23
Acquisition. The Acquisition Agreement shall have been duly executed and delivered by the respective parties thereto on the date hereof and shall be in full force and effect on the date hereof and on the Closing Date, all conditions precedent
to the consummation of the Acquisition shall have been satisfied and not waived (except such waivers as are not adverse to the interests of the Lender, as determined by the Lender in its sole discretion) on the Closing Date, neither Recro nor the
Borrower shall have consented to any action that requires their consent under the Acquisition Agreement (except such consents as are not adverse to the interests of the Lender, as determined by the Lender in its sole discretion) and the Acquisition
shall be consummated concurrently with the funding of the Loan. The Lender shall have received a copy of the Acquisition Agreement, the terms of which shall not have not been amended, supplemented, modified or waived after the date hereof in any
respect that is adverse to the interests of the Lender, as determined by the Lender in its sole discretion. 
 SECTION 5.24 Merger.
All documentation and all pre-filings reasonably required by the Lender in connection with the Merger shall be complete and in form and substance reasonably satisfactory to the Lender. 

SECTION 5.25 Perfection Certificates. (i) The Lender shall have received on the date hereof perfection certificates to the Lender,
each dated the date hereof, duly executed and delivered by an Authorized Officer of each of Recro and Recro Pharma LLC, and (A) in the case of Recro, in the form of Exhibit I attached hereto, and (B) in the case of Recro Pharma LLC,
in the form of Exhibit J attached hereto; and (ii) the Lender shall have received on the Closing Date perfection certificates, each dated the Closing Date, duly executed and delivered by an Authorized Officer of each Loan Party, and
(A) in the case of Recro, in the form of Exhibit I attached hereto, (B) in the case of Recro Pharma LLC, in the form of Exhibit J attached hereto, (C) in the case of the Surviving Entity, in the form of Exhibit K
attached hereto (which form is incomplete as of the date hereof) but completed in form and substance reasonably satisfactory to the Lender (the “Completed Surviving Entity Perfection Certificate”), and (D) in the case of Newco,
in the form of Exhibit L attached hereto (which form is incomplete as of the date hereof) but completed in form and substance reasonably satisfactory to the Lender (the “Completed Newco Perfection Certificate,” and together
with the Completed Surviving Entity Perfection Certificate, the “Completed Perfection Certificates”). The Loan Parties will agree to any changes to the Loan Documents reasonably requested by the Lender in light of any information
provided on the Completed Perfection Certificates that was not on the forms set forth in Exhibit K and Exhibit L attached hereto. 

  
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 SECTION 5.26 Warrant. The Lender shall have received the Warrant, dated as of the Closing
Date, duly executed and delivered by Recro. 
 ARTICLE VI 

REPRESENTATIONS AND WARRANTIES 

In order to induce the Lender to enter into this Agreement and to make the Loan hereunder, the Borrower represents and warrants to the Lender,
as of the date of this Agreement and as of the Closing Date, as set forth in this Article VI (it being understood and agreed that (i) the representations and warranties made on the Closing Date are deemed to be made concurrently with and
after giving effect to the consummation of the Acquisition and the Merger and (ii) references to the Borrower and the Loan Parties in this Article VI include (A) the Companies and (B) Newco (assuming for such purpose that Newco
was formed and the Asset and Liability Transfer occurred immediately prior to the execution of this Agreement)). 
 SECTION 6.1
Organization, Etc. Each of the Loan Parties and its respective Subsidiaries (a) is validly organized or registered and existing and in good standing under the laws of the jurisdiction of its incorporation or organization, and (b) is
duly qualified to do business and is in good standing as a foreign entity in each jurisdiction where the nature of its business requires such qualification, except, in the case of clause (b), where failure to do so would not reasonably be expected
to have a Material Adverse Effect, and has full power and authority and holds all material requisite governmental licenses, permits and other approvals to enter into and perform its Obligations under each Loan Document to which it is a party, to own
and hold under lease its property and to conduct its business substantially as currently conducted by it. 
 SECTION 6.2 Due
Authorization, Non-Contravention, Etc. The execution, delivery and performance by each Loan Party of each Loan Document executed or to be executed by it are in each case within such Person’s corporate or other powers, have been duly
authorized by all necessary corporate or other action, and do not: 
 (a) contravene (i) such Loan Party’s Organic
Documents, (ii) any court decree or order binding on or affecting such Loan Party or (iii) any law or governmental regulation binding on or affecting such Loan Party; or 

(b) result in (i) or require the creation or imposition of any Lien on such Loan Party’s properties (except as
permitted by this Agreement) or (ii) a default under any Material Agreement. 
 SECTION 6.3 Government Approval, Regulation,
Etc. No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or other Person (other than those that have been, or on the Closing Date will be, duly obtained or made and which are, or on the
Closing Date will be, in full force and effect is required for the due execution, delivery or performance by any Loan Party of any Loan Document to which it is a party. 

SECTION 6.4 Validity, Etc. Each Loan Document to which a Loan Party is a party constitutes the legal, valid and binding obligations of
such Person enforceable against such 

  
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Person in accordance with its respective terms (except, in any case, as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting
creditors’ rights generally and by principles of equity). 
 SECTION 6.5 Financial Information. The financial statements
furnished to the Lender pursuant to Sections 5.6 and 7.1 have been prepared in accordance with GAAP, consistently applied, except that the unaudited financial statements may not contain all footnotes required by GAAP, and present
fairly the consolidated financial condition of the Persons covered thereby as at the dates thereof and the results of their operations for the periods then ended. 

SECTION 6.6 No Material Adverse Change. There has been no material adverse change in the business, financial performance or condition,
operations (including the results thereof), assets or properties of Recro, the Borrower or any Loan Party or any of its Subsidiaries since December 31, 2014. 

SECTION 6.7 Litigation, Labor Matters and Environmental Matters. 

(a) Except as described on Schedule 6.7(a), there are no actions, suits or proceedings by or before any arbitrator or
Governmental Authority pending against or, to the knowledge of the Borrower, threatened against or affecting any Loan Party or any of its respective Subsidiaries (i) as to which there is a reasonable likelihood of an adverse determination and
that, if adversely determined, would reasonably be expected, individually or in the aggregate, to result in liabilities in excess of $200,000 or (ii) that would reasonably be likely to adversely affect this Agreement or the transactions
contemplated hereby. 
 (b) There are no labor controversies pending against or, to the knowledge of the Borrower, threatened
against or affecting any Loan Party or any of its respective Subsidiaries (i) that would reasonably be expected, individually or in the aggregate, to result in liabilities in excess of $200,000 or (ii) that would reasonably be likely to
adversely affect this Agreement or the transaction contemplated hereby. 
 (c) No Loan Party nor any of its respective
Subsidiaries (i) has failed to comply in all material respects with any Environmental Law or to obtain, maintain or comply in all material respects with any Permit under or in connection with any Environmental Law (“Environmental
Permit”), (ii) is or has been subject to any material claim under any Environmental Liability, (iii) has received notice of any material claim under any Environmental Liability, or (iv) knows of any basis for any material
claim under any Environmental Liability in each case, which has resulted or would be reasonably expected, individually or in the aggregate, to result in the liabilities in excess of $500,000. 

SECTION 6.8 Subsidiaries. Recro has no Subsidiaries except those Subsidiaries which are identified in Schedule 6.8 (which
schedule also identifies the direct and indirect owners of the Capital Securities of such Subsidiaries) or which are permitted to have been organized or acquired after the Closing Date in accordance with Section 8.5 or
Section 8.7. 

  
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 SECTION 6.9 Ownership of Properties. Each of the Loan Parties and its respective
Subsidiaries owns (i) in the case of owned real property, good and marketable title in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title
as could not, individually or in the aggregate, adversely interfere in any material respect with the value or use of such property, and (ii) in the case of owned personal property, good and valid title to, or, in the case of leased real or
personal property, valid and enforceable leasehold interests (as the case may be) in, all of its properties and assets, tangible and intangible, of any nature whatsoever; in each case, free and clear in each case of all Liens or claims, except for
Liens permitted pursuant to Section 8.3. 
 SECTION 6.10 Taxes. Each of the Loan Parties and its respective Subsidiaries
has filed all material Tax returns and reports required by law to have been filed by it and has paid all material Taxes due and owing, except any such Taxes which are being diligently contested in good faith by appropriate proceedings and for which
adequate reserves in accordance with GAAP shall have been set aside on its books. 
 SECTION 6.11 Benefit Plans, Etc. Except as set
forth on Schedule 6.11, none of the Loan Parties, nor any of their respective Subsidiaries, nor any of their respective ERISA Affiliates, sponsors, maintains, contributes to, is required to contribute to, or has any actual or potential
liability with respect to, any Benefit Plan. None of the Loan Parties nor any of their respective Subsidiaries is a party to any collective bargaining agreement, and none of the employees of any Loan Party or its respective Subsidiaries are subject
to any collective bargaining agreement. Each “employee benefit plan” as defined in section 3(3) of ERISA that provides retirement benefits and that is sponsored by any Loan Party or any of its respective Subsidiaries, or any of their ERISA
Affiliates (or under which any of these entities has any actual or potential liability), and is intended to be tax qualified under section 401 of the Code has a determination letter or opinion letter from the Internal Revenue Service on which it is
entitled to rely, and no assets of any such plan are invested in Capital Securities of Recro or the Borrower. Each employee benefit plan, program or arrangement sponsored, maintained, contributed to or required to be contributed to by any Loan Party
or any of its respective Subsidiaries (or under which any of these entities has any actual or potential liability) has complied in all material respects with its terms and applicable law except for non compliance that would not reasonably
(i) be expected, individually or in the aggregate, to result in liabilities in excess of $200,000 or (ii) be likely to adversely affect this Agreement or the transaction contemplated hereby. Each employee benefit plan as defined in section
3(3) of ERISA that provides medical, dental, vision, or long-term disability benefits and that is sponsored by any Loan Party or any of its respective Subsidiaries or any of their ERISA Affiliates (or under which any of these entities has any actual
or potential liability), is fully insured. 
 SECTION 6.12 Accuracy of Information. None of the information heretofore or
contemporaneously furnished in writing to the Lender by or on behalf of any Loan Party or its respective Subsidiaries in connection with any Loan Document or any transaction contemplated hereby contains any untrue statement of a material fact, or
omits to state any material fact necessary to make any information therein, in light of the circumstances under which they were made, not misleading (after giving effect to all modifications and supplements to such written information and written
data, in each case, furnished after the date on which such written information or such written data was originally delivered and prior to the date hereof); it being 

  
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understood that for purposes of this Section 6.12, such written information and written data shall not include projections, and Borrower represents only that such projections were
prepared in good faith based upon assumptions believed to be reasonable at the time. 
 SECTION 6.13 Regulations U and X. None of the
Loan Parties nor any of their respective Subsidiaries is engaged in the business of extending credit for the purpose of buying or carrying margin stock, and no proceeds of the Loan will be used to purchase or carry margin stock or otherwise for a
purpose which violates, or would be inconsistent with, F.R.S. Board Regulation U or Regulation X. Terms for which meanings are provided in F.R.S. Board Regulation U or Regulation X or any regulations substituted therefor, as from time to
time in effect, are used in this Section with such meanings. 
 SECTION 6.14 Solvency. Each of the Loan Parties and its respective
Subsidiaries is Solvent. 
 SECTION 6.15 Intellectual Property. 

(a) Schedule 6.15(a) sets forth a complete and accurate list of all (i) Patents including any Patent applications
and other material defined herein as Patents, (ii) registered Trademarks (including domain names) and any pending registrations for Trademarks, and (iii) any other registered Intellectual Property, in each case owned or licensed by any
Loan Party or any of its Subsidiaries. For each item of Intellectual Property listed on Schedule 6.15(a), the Borrower has, where relevant, indicated on such schedule the owner of record, jurisdiction of application and/or registration, the
application numbers, the registration or patent numbers or patent application numbers, and the date of application and/or registration. 

(b) With respect to all Intellectual Property listed on Schedule 6.15(a): 

(i) each Loan Party and its respective Subsidiaries, as applicable, owns or has a valid license to such Intellectual Property
free and clear of any and all Liens other than Liens permitted pursuant to Section 8.3; 
 (ii) each Loan Party
and its respective Subsidiaries, as applicable, has taken commercially reasonable actions to maintain and protect such Intellectual Property; 

(iii) except as set forth on Schedule 6.15(b)(iii), there is no proceeding that the Borrower has knowledge of
challenging the validity or enforceability of any such Intellectual Property, none of the Loan Parties nor any of their respective Subsidiaries is involved in any such proceeding with any Person and, to the knowledge of the Borrower, none of the
Intellectual Property is the subject of any Other Administrative Proceeding; 
 (iv) (A) such Intellectual Property is valid,
enforceable and subsisting and (B) no event has occurred, and nothing has been done or omitted to have been done, that would affect the validity or enforceability of such Intellectual Property and all such Intellectual Property is in full force
and effect and have not lapsed, or 

  
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been forfeited or cancelled or abandoned and there are no unpaid maintenance, renewal or other fees payable or owing by such Loan Party or Subsidiary for any such Intellectual Property; and 

(v) each Loan Party and its respective Subsidiaries, as applicable, is the sole and exclusive owner of all right, title and
interest in and to all such Intellectual Property that is owned by it. 
 (c) Except as otherwise disclosed on Schedule
6.15(c), to the knowledge of the Borrower, no Third Party is committing any act of Infringement of any Intellectual Property listed on Schedule 6.15(a). 

(d) With respect to each license agreement listed on Schedule 6.15(a), such license agreement (i) is in full force
and effect and is binding upon and enforceable against each Loan Party (or each Loan Party’s respective Subsidiaries, as applicable) party thereto and all other parties thereto in accordance with its terms, (ii) has not been amended or
otherwise modified and (iii) has not suffered a default or breach thereunder. None of the Loan Parties nor any of their respective Subsidiaries has taken or omitted to take any action that would permit any other Person party to any such license
agreement to have, and to the knowledge of the Borrower, no such Person otherwise has, any defenses, counterclaims or rights of setoff thereunder. 

(e) Except as set forth on Schedule 6.15(e), none of the Loan Parties nor any of their respective Subsidiaries has
received since January 1, 2012 written notice from any Third Party alleging that the conduct of its business (including the development, manufacture, use, sale or other commercialization of any Product) Infringes any Intellectual Property of
that Third Party and, to the knowledge of the Borrower, the conduct of its business and the business of the Loan Parties (including the development, manufacture, use, sale or other commercialization of any Product) does not Infringe any Intellectual
Property of any Third Party. 
 (f) The Loan Parties and their respective Subsidiaries have used commercially reasonable
efforts and precautions to protect their respective commercially significant unregistered Intellectual Property. 
 SECTION 6.16 Material
Agreements. Set forth on Schedule 6.16 is a complete and accurate list of all Material Agreements of the Loan Parties and their respective Subsidiaries, with an adequate description of the parties thereto, and amendments and modifications
thereto. Each such Material Agreement (i) is in full force and effect and is binding upon and enforceable against the Loan Parties and their respective Subsidiaries party thereto and, to the knowledge of the Borrower, all other parties thereto
in accordance with its terms, and (ii) is not currently subject to any material breach or default by any Loan Party, any of its respective Subsidiaries or, to the knowledge of the Borrower, any other party thereto. None of the Loan Parties nor
any of its respective Subsidiaries has taken or failed to take any action that would permit any other Person party to any Material Agreement to have, and, to the knowledge of the Borrower, no such Person otherwise has, any defenses, counterclaims or
rights of setoff thereunder. 

  
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 SECTION 6.17 Permits. The Loan Parties and their respective Subsidiaries have all material
Permits, including material Environmental Permits, necessary or required for the ownership, operation and conduct of their business and the distribution of the Products. All such Permits are validly held and there are no defaults thereunder. 

SECTION 6.18 Regulatory Matters. With respect to: (i) Recro and Recro Pharma, and (ii) since January 1, 2012, the
Companies, Newco and Surviving Entity: 
 (a) All material Regulatory Authorizations held by the Loan Parties and their
respective Subsidiaries are (i) legally and beneficially owned exclusively by one of the Loan Parties or their respective Subsidiaries, free and clear of all Liens other than Liens permitted pursuant to Section 8.3, and
(ii) validly registered and on file with the applicable Governmental Authority, in compliance with all filing and maintenance requirements (including any fee requirements) thereof, and are in good standing, valid and enforceable with the
applicable Governmental Authority. All required notices, registrations and listings, supplemental applications or notifications, reports (including reports of adverse experiences) and other required filings with respect to the Products have been
filed with the FDA, the DEA, and all other applicable Governmental Authorities. 
 (b) The Products, as well as the business
of the Loan Parties and their respective Subsidiaries, materially comply with (i)(A) all applicable laws, rules, regulations, orders, injunctions and decrees of the FDA, the DEA, and other applicable Governmental Authority, including, without
limitation, all applicable requirements of the FD&C Act, the PHSA, the Controlled Substances Act, and similar state laws, and (B) all Product Authorizations and other Regulatory Authorizations; (ii) none of the Loan Parties, their
respective Subsidiaries nor their respective suppliers have received any inspection reports, warning letters, untitled letters or similar documents with respect to any Product, as well as the business of the Loan Parties and their respective
Subsidiaries, from any Governmental Authority that assert lack of compliance with any applicable material laws, rules, regulations, orders, injunctions, or decrees; (iii) the Borrower has not received any written notice of, and does not
otherwise have knowledge of, any pending regulatory enforcement action, investigation or inquiry (other than non-material routine or periodic inspections or reviews) against the Loan Parties, any of their respective Subsidiaries or any of their
respective suppliers with respect to the Products, and, to the knowledge of the Borrower, there is no basis for any adverse regulatory action against the Loan Parties or their respective Subsidiaries or, to the knowledge of the Borrower, their
respective suppliers with respect to the Products; and (iv) without limiting the foregoing, (A) to the knowledge of Borrower (1) there have been no product recalls, safety alerts, withdrawals, clinical holds, marketing suspensions,
removals or the like conducted, undertaken or issued by any Person, whether or not at the request, demand or order of any Governmental Authority or otherwise, with respect to any Product, (2) no such product recalls, safety alerts, corrections,
withdrawals, marketing suspensions, removals or the like have been requested, demanded or ordered by any Governmental Authority, and, to the knowledge of the Borrower, there is no basis for the issuance of any such product recalls, safety alerts,
corrections, withdrawals, marketing suspensions, removals or the like by any Person with respect to any Products, and (B) the Borrower has not received 

  
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any written notice of, and does not otherwise have knowledge of, any criminal, injunctive, seizure, detention or civil penalty actions that have at any time been commenced or threatened in
writing by any Governmental Authority with respect to or in connection with any Products, or any consent decrees (including plea agreements) which relate to any Products, and, to the knowledge of the Borrower, there is no basis for the commencement
for any criminal injunctive, seizure, detention or civil penalty actions by any Governmental Authority relating to the Products or for the issuance of any consent decrees. None of the Loan Parties or their respective Subsidiaries nor, to the
knowledge of the Borrower, any of their respective suppliers is employing or utilizing the services of any individual who has been debarred or temporarily suspended under any applicable law, rule or regulation. 

(c) All clinical trials conducted by or on behalf of any Loan Party or any of its respective Subsidiaries with respect to any
Product have been conducted in material compliance with cGCPs. Except as set forth in Schedule 6.18(c), no Loan Party nor any of its respective Subsidiaries has received any notice from FDA or any other Governmental Authority alleging any
material non-compliance with cGCPs or otherwise terminating or suspending any clinical trial conducted by or on behalf of such Loan Party or Subsidiary with respect to any Product. 

(d) In all material respects with respect to Products, (i) all design, manufacturing, storage, distribution, packaging,
labeling, sale, recordkeeping and other activities by the Loan Parties, their respective Subsidiaries and their respective suppliers relating to the Products have been conducted, and are currently being conducted, in compliance with the applicable
requirements of the FD&C Act, the PHSA, the Controlled Substances Act, and other requirements of the FDA, the DEA, and all other Governmental Authorities, including, without limitation, cGMPs, adverse event reporting requirements, and state and
federal requirements relating to the handling of controlled substances and (ii) none of the Loan Parties or their respective Subsidiaries, or, to the knowledge of the Borrower, any of their respective suppliers has received written notice or
threat of commencement of action by any Governmental Authority to withdraw its approval of or to enjoin production of the Products at any facility. No Product in the inventory of the Loan Parties or their respective Subsidiaries is adulterated or
misbranded. All labels and labeling (including package inserts) and product information are in material compliance with applicable FDA and other Governmental Authority requirements, and the Products are in material compliance with all
classification, registration, listing, marking, tracking, reporting, recordkeeping and audit requirements of the FDA, the DEA, and any other Governmental Authority. 

(e) All manufacturing facilities owned or operated by the Loan Parties and their respective Subsidiaries are and have been
operated in material compliance with cGMPs and all other applicable laws. The FDA has not issued any Form 483, Warning Letter, or untitled letter with respect to any such facility, or otherwise alleged any material non-compliance with cGMPs. All
such facilities are operated in material compliance with the Controlled Substances Act, applicable DEA regulations, and other applicable federal and state laws. 

  
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 (f) The Borrower has made available to the Lender all material adverse event
reports and communications to or from FDA (if any) and other relevant Governmental Authorities, including inspection reports, warning letters, untitled letters, and material reports, studies and other correspondence, other than opinions of counsel
that are attorney-client privileged, with respect to regulatory matters relating to the Loan Parties and their respective Subsidiaries, the conduct of their business, the operation of any manufacturing facilities owned or operated by the Loan
Parties and their respective Subsidiaries, and the Products. 
 (g) All studies, tests and preclinical and clinical trials
conducted relating to the Products, in all material respects, by or on behalf of the Loan Parties, their respective Subsidiaries and, to the knowledge of the Borrower, their respective licensees, licensors and third party services providers and
consultants, have been conducted, and are currently being conducted, in full compliance with all material applicable laws, including, but not limited to, the FD&C Act, the PHSA, current good clinical practices and, to the extent required by FDA
guidances and regulations, current good laboratory practices, the Controlled Substances Act, and all similar applicable laws, rules and regulations. All results of such studies, tests and trials, and all other material information related to such
studies, tests and trials, have been made available to the Lender. The summaries and descriptions of any of the foregoing provided to the Lender are accurate and contain no material omissions. None of the Loan Parties, their respective Subsidiaries,
or, to the knowledge of the Borrower, any of their respective licensees, licensors or third party services providers or consultants, has received from the FDA or other applicable Governmental Authority any notices or correspondence requiring the
termination, suspension, material modification or clinical hold of any studies, tests or clinical trials in any material respect with respect to or in connection with the Products. 

(h) There has been no material untrue statement of fact and no fraudulent statement made by the Loan Parties or their
respective Subsidiaries, or any of their respective agents or representatives to the FDA, the DEA, or any other Governmental Authority, and there has been no failure to disclose any material fact required to be disclosed to the FDA, the DEA, or any
other Regulatory Agency. 
 (i) No Loan Party nor any of its respective Subsidiaries has received any notice from the United
States Department of Justice, any U.S. Attorney, any State Attorney General, or other similar federal, state, or foreign Governmental Authority alleging any violation of the Federal Anti-kickback Statute, the Federal False Claims Act, the Foreign
Corrupt Practices Act, any federal law, or similar state or foreign law. No Loan Party nor any of its respective Subsidiaries is aware of any conduct that reasonably could be interpreted as a violation of any such law. 

(j) The transactions contemplated by the Loan Documents (or contemplated by the conditions to effectiveness of any Loan
Document) will not impair the Loan Parties’ ownership of or rights under (or the license or other right to use, as the case may be) any Regulatory Authorizations relating to the Products in any material manner. 

  
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 (k) No right of any Loan Party or any of its respective Subsidiaries to receive
reimbursements pursuant to any government program or private program has ever been terminated or otherwise adversely affected as a result of any investigation or enforcement action, whether by any Governmental Authority or other Third Party, and
none of the Loan Parties nor any of their respective Subsidiaries has been the subject of any inspection, investigation or audit by any Governmental Authority in connection with any alleged improper activity. 

(l) None of the Loan Parties nor any of their respective Subsidiaries nor, to the Borrower’s knowledge, any individual who
is an officer, director, manager, employee, stockholder, agent or managing agent of any Loan Party or any of its respective Subsidiaries, has been convicted of, charged with or, to the Borrower’s knowledge, investigated for any federal or state
health program-related offense or any other offense related to healthcare or been excluded or suspended from participation in any such program; or, to the Borrower’s knowledge, within the past five (5) years, has been convicted of, charged
with or, to the Borrower’s knowledge, investigated for a violation of laws related to fraud, theft, embezzlement, breach of fiduciary responsibility, financial misconduct, obstruction of an investigation or controlled substances, or has been
subject to any judgment, stipulation, order or decree of, or criminal or civil fine or penalty imposed by, any Governmental Authority related to fraud, theft, embezzlement, breach of fiduciary responsibility, financial misconduct, obstruction of an
investigation or controlled substances. None of the Loan Parties nor any of their respective Subsidiaries nor, to the Borrower’s knowledge, any individual who is an officer, director, employee, stockholder, agent or managing agent of any Loan
Party or any of its respective Subsidiaries has been convicted of any crime or engaged in any conduct that has resulted or would reasonably be expected to result in a debarment or exclusion (i) under 21 U.S.C. Section 335a, or
(ii) any similar applicable law. No debarment proceedings or investigations in respect of the business of any Loan Party or any of its respective Subsidiaries are pending or, to the Borrower’s knowledge, threatened against any Loan Party
or any of its respective Subsidiaries or any individual who is an officer, director, manager, employee, stockholder, agent or managing agent of any Loan Party or any of its respective Subsidiaries. 

SECTION 6.19 Transactions with Affiliates. Except as set forth on Schedule 6.19, none of the Loan Parties nor any of their
respective Subsidiaries is a party to any transaction or agreement (including the purchase, sale, lease, transfer or exchange of property or assets of any kind or the rendering of services of any kind) with any of its Affiliates as of the date
hereof and as of the Closing Date. 
 SECTION 6.20 Investment Company Act. None of the Loan Parties nor any of their respective
Subsidiaries is an “investment company” or is “controlled” by an “investment company,” as such terms are defined in, or subject to regulation under, the Investment Company Act of 1940, as amended. 

SECTION 6.21 OFAC. None of the Loan Parties nor any of their respective Subsidiaries nor, to the knowledge of the Borrower, any Related
Party (a) is currently the subject of any Sanctions, (b) is located, organized or residing in any Designated Jurisdiction, or (c) is or has 

  
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been (within the previous five (5) years) engaged in any transaction with any Person who is now or was then the subject of Sanctions or who is located, organized or residing in any
Designated Jurisdiction. No Loan, nor the proceeds from any Loan, has been or will be used, directly or indirectly, to lend, contribute or provide to, or has been or will be otherwise made available to fund, any activity or business in any
Designated Jurisdiction or to fund any activity or business of any Person located, organized or residing in any Designated Jurisdiction or who is the subject of any Sanctions, or in any other manner that will result in any violation by any Person
(including the Lender and its Affiliates) of Sanctions. 
 SECTION 6.22 Deposit and Disbursement Accounts. Set forth on Schedule
6.22 is a complete and accurate list of all banks and other financial institutions at which the Loan Parties maintain deposit accounts, lockboxes, disbursement accounts, investment accounts or other similar accounts, such schedule correctly
identifies the name, address and telephone number of each bank or financial institution, the name in which each such account is held, the type of each such account, and the complete account number for each such account. 

SECTION 6.23 Customer and Trade Relations. There exists no actual or, to the knowledge of the Borrower, overtly threatened termination
or cancellation of, or any material adverse modification or change in (a) the business relationship of any Loan Party or any of its respective Subsidiaries with any customer or group of customers whose purchases during the preceding 12 calendar
months caused such customer or group of customers to be ranked among the five (5) largest customers of any Loan Party or its respective Subsidiaries, as applicable, or (b) the business relationship of any Loan Party or any of its
respective Subsidiaries with any supplier essential to its operations. 
 SECTION 6.24 Meloxicam Assets and Liabilities. Schedule
7.16(a) sets forth the assets of the Loan Parties solely related to Meloxicam IV/IM, an aqueous extended-release formulation of the selective COX-2 inhibitor non-steroidal anti-inflammatory drug meloxicam developed by APIL using nanocrystal
technology, in intravenous or intramuscular form, and no other assets of the Loan Parties, and all liabilities related thereto. 
 ARTICLE
VII 
 AFFIRMATIVE COVENANTS 
 The Borrower
covenants and agrees with the Lender that on and after the Closing Date and until the Termination Date has occurred, the Loan Parties will perform or cause to be performed the obligations set forth below. 

SECTION 7.1 Financial Information, Reports, Notices, Etc. The Borrower will furnish the Lender copies of the following financial
statements, reports, notices and information: 
 (a) as soon as available and in any event within 30 days after the end of
each calendar month, in each case with supporting detail and certified as complete and correct by the chief financial or accounting Authorized Officer of Recro (subject to normal year-end audit adjustments), (i) unaudited reports of the
Liquidity of the Borrower and (ii) beginning with the calendar month of April 2015, unaudited reports of the Liquidity of Recro and its Subsidiaries on a consolidated basis for the corresponding calendar month in the preceding Fiscal Year, in
comparative form; 

  
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 (b) as soon as available and in any event within 45 days after the end of each of
the first three Fiscal Quarters of each Fiscal Year, an unaudited consolidated and consolidating balance sheet of Recro and its Subsidiaries as of the end of such Fiscal Quarter and consolidated and consolidating statements of income and cash flow
of Recro and its Subsidiaries for such Fiscal Quarter (including separate carve out financials for the Borrower and its Subsidiaries) and the Revenue Base for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal Year
and ending with the end of such Fiscal Quarter and including in comparative form the figures for the corresponding Fiscal Quarter in, and the year to date portion of, the immediately preceding Fiscal Year, and including (in each case) in comparative
form the figures for the corresponding Fiscal Quarter in, and the year to date portion of, the immediately preceding Fiscal Year, certified as complete and correct by the chief financial or accounting Authorized Officer of the Borrower (subject to
normal year-end audit adjustments); 
 (c) as soon as available and in any event within 90 days after the end of each Fiscal
Year, (i) a copy of the consolidated and consolidating balance sheet of Recro and its Subsidiaries, and the related consolidated and consolidating statements of income and cash flow of Recro and its Subsidiaries for such Fiscal Year (including
separate carve out financials for the Borrower and its Subsidiaries), setting forth in comparative form the figures for the immediately preceding Fiscal Year, audited (without any Impermissible Qualification) by independent public accountants
acceptable to the Lender, which shall include a calculation of the financial covenants set forth in Section 8.4 and stating that, in performing the examination necessary to deliver the audited financial statements of the Borrower, no
knowledge was obtained of any Event of Default, and (ii) the Revenue Base for the Fiscal Quarter then ending and such Fiscal Year and including in comparative form the figures for the corresponding Fiscal Quarter in the immediately preceding
Fiscal Year and the immediately preceding Fiscal Year; 
 (d) concurrently with the delivery of the financial information
pursuant to clauses (a), (b) and (c), a Compliance Certificate, executed by the chief financial or accounting Authorized Officer of the Borrower, (i) showing compliance with the financial covenants set forth in
Section 8.4 and stating that no Default has occurred and is continuing (or, if a Default has occurred, specifying the details of such Default and the action that the applicable Loan Parties have taken or proposes to take with respect
thereto), (ii) stating that no Subsidiary of any Loan Party has been formed or acquired since the delivery of the last Compliance Certificate (or, if such a Subsidiary has been formed or acquired since the delivery of the last Compliance
Certificate, a statement that such Subsidiary has complied with Section 7.8) and (iii) stating that no real property has been acquired by any Loan Party or any of its respective Subsidiaries since the delivery of the last Compliance
Certificate (or, if any real property has been acquired since the delivery of the last Compliance Certificate, a statement that the Borrower has complied with Section 7.8 with respect to such real property); 

  
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 (e) as soon as available and in any event within 30 days after the end of each
Fiscal Year, annual operating plans for the Borrower and its Subsidiaries and Recro and its Subsidiaries for the following Fiscal Year, in form reasonably satisfactory to the Lender, which (i) includes a statement of all material assumptions on
which such plan is based, (ii) includes an annual budget (by month) for the following Fiscal Year, and (iii) integrates sales, gross profits, operating expenses, operating profit and cash flow projections, all prepared on the same basis
and in similar detail as that on which the operating results are reported (and in the case of cash flow projections, representing management’s good faith estimates of future financial performance based on historical performance), and including
plans for personnel, capital expenditures and facilities; 
 (f) as soon as possible and in any event within five Business
Days after the Borrower obtains knowledge of the occurrence of a Default, a statement of an Authorized Officer of the Borrower setting forth details of such Default and the action which the applicable Loan Party or its applicable Subsidiary has
taken or proposes to take with respect thereto; 
 (g) as soon as possible and in any event within five Business Days after
the Borrower obtains knowledge of (i) the occurrence of any material adverse development with respect to any litigation, action, proceeding or labor controversy described in Schedule 6.7(a) or (ii) the commencement of any
litigation, action, proceeding or labor controversy of the type and materiality described in Section 6.7, notice thereof and, to the extent the Lender requests, copies of all documentation relating thereto; 

(h) as soon as possible and in any event within five Business Days after the Borrower obtains knowledge of any return,
recovery, dispute or claim related to Product or inventory that involves more than $100,000. 
 (i) as soon as possible and
in any event within three days after the Borrower obtains knowledge of (i) any claim that any Loan Party or any of its respective Subsidiaries, or one of their ERISA Affiliates, has actual or potential liability under a Benefit Plan,
(ii) any effort to unionize the employees of any Loan Party or any of its respective Subsidiaries, (iii) correspondence with the Internal Revenue Service regarding the qualification of a retirement plan under Section 401(a) of the
Code (other than correspondence made in connection with a routine application for a determination from the Internal Revenue Service with respect to the qualification of such a retirement plan), or (iv) any employee benefit plan as defined in
section 3(3) of ERISA that provides medical, dental, vision, or long-term disability benefits and that is sponsored by any Loan Party, any of its respective Subsidiaries or any of their ERISA Affiliates (or under which any of these entities has any
actual or potential liability) becoming self-insured. 
 (j) promptly after the sending or filing thereof, copies of all
reports, notices, prospectuses and registration statements which any Loan Party or any of its respective Subsidiaries files with the SEC or any national securities exchange; 

(k) promptly upon receipt thereof, copies of all “management letters” (or equivalent) submitted to any Loan Party or
any of its respective Subsidiaries by the independent public accountants referred to in clause (b) in connection with each audit made by such accountants; 

  
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 (l) promptly upon receipt thereof, copies of any notices delivered by any Person
under or pursuant to the Acquisition Agreement; 
 (m) promptly upon receipt thereof, copies of all subpoenas, requests for
information and other notices regarding any active or potential investigation of, or claim or litigation against, any Loan Party or any of its respective Subsidiaries by any Governmental Authority, and the findings of any inspections of any
manufacturing facilities of any Loan Party, any of its respective Subsidiaries or any Third Party suppliers of any Loan Party or any of its respective Subsidiaries by any Governmental Authority (including any Form 483s and warning letters); 

(n) as soon as practicable and in any event within five Business Days after (i) the Borrower enters into a new Material
Agreement and (ii) an existing Material Agreement is amended or terminated; and 
 (o) such other financial and other
information as the Lender may from time to time reasonably request (including copies of any documents requested and information and reports in such detail as the Lender may request with respect to the terms of and information provided pursuant to
the Compliance Certificate). 
 SECTION 7.2 Maintenance of Existence; Compliance with Contracts, Laws, Etc. Each Loan Party and its
respective Subsidiaries will preserve and maintain its legal existence (except as otherwise permitted by Section 8.7), perform in all material respects its obligations under Material Agreements to which such Loan Party or its applicable
Subsidiary is a party, take all actions to ensure that all Material Agreements remain in full force and effect, and comply in all material respects with all applicable laws, rules, regulations and orders, including the payment (before the same
become delinquent), of all Taxes, imposed upon it or upon its property except to the extent being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside on the books
of the Loan Parties or its respective Subsidiaries, as applicable. 
 SECTION 7.3 Maintenance of Properties. Each of the Loan Parties
and its respective Subsidiaries will maintain, preserve, protect and keep its and their respective properties in good repair, working order and condition (ordinary wear and tear excepted), and make necessary repairs, renewals and replacements (or,
with respect to any leased real property, cause landlord to do so) so that the business carried on by such Loan Party or its applicable Subsidiary may be properly conducted at all times, unless such Loan Party or its applicable Subsidiary determines
in good faith that the continued maintenance of such property is no longer economically desirable, necessary or useful to the business of such Loan Party or its applicable Subsidiary or the Disposition of such property is otherwise permitted by
Section 8.7 or Section 8.8. 
 SECTION 7.4 Insurance. Each Loan Party and its respective Subsidiaries will
maintain: 
 (a) insurance on its property with financially sound and reputable insurance companies against business
interruption, loss and damage in at least the amounts (and 

  
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with only those deductibles) customarily maintained, and against such risks as are typically insured against in the same general area, by Persons of comparable size engaged in the same or similar
business as the Loan Parties and their respective Subsidiaries; and 
 (b) all worker’s compensation, employer’s
liability insurance or similar insurance as may be required under the laws of any state or jurisdiction in which it may be engaged in business. 
 Without
limiting the foregoing, all insurance policies required pursuant to this Section shall on and after the Closing Date: (i) name the Lender as mortgagee and loss payee (in the case of property insurance) and additional insured (in the case of
liability insurance), as applicable, and provide that no cancellation of the policies will be made without 30 days’ prior written notice, except 10 days for non payment of premium, to the Lender and (ii) be in addition to any requirements
to maintain specific types of insurance contained in the other Loan Documents. 
 SECTION 7.5 Books and Records. Each Loan Party and
its respective Subsidiaries will keep books and records in accordance with GAAP which accurately reflect all of its business affairs and transactions and permit the Lender or any of its representatives, at reasonable times and intervals upon
reasonable notice to the Borrower, to visit any Loan Party’s or any Loan Party’s Subsidiary’s offices, to discuss such Loan Party’s or its applicable Subsidiary’s financial or other matters with its officers and employees,
and its independent public accountants (and the Borrower hereby authorizes such independent public accountants to discuss such Loan Party’s and its applicable Subsidiary’s financial and other matters with the Lender or its representatives
whether or not any representative of such Loan Party or its applicable Subsidiary is present) and to examine (and photocopy extracts from) any of its books and records all at Borrower’s expense; provided that, only one such visit and
inspection in each calendar year shall be at the Borrower’s expense, other than and visits and inspections during the time that an Event of Default has occurred and is continuing. 

SECTION 7.6 Environmental Law Covenant. Each Loan Party and its respective Subsidiaries will (i) use and operate all of its and
their businesses, facilities and properties in material compliance with all Environmental Laws, and keep and maintain all Environmental Permits and remain in material compliance therewith, and (ii) promptly notify the Lender of, and provide the
Lender with copies of all material claims, complaints, notices or inquiries relating to, any actual or alleged non-compliance with any Environmental Laws or Environmental Permits or any actual or alleged Environmental Liabilities. Each of the Loan
Parties and its respective Subsidiaries will promptly resolve, remedy and mitigate any such non-compliance or Environmental Liabilities to the extent required by Environmental Law, and shall keep the Lender informed as to the progress of same. 

SECTION 7.7 Use of Proceeds. The Borrower will apply the proceeds of the Loan according to the sources and uses table in Schedule
7.7. 
 SECTION 7.8 Future Guarantors, Security, Etc. Each of the Loan Parties and its respective Subsidiaries will execute any
documents, financing statements, agreements and instruments, and take all further action that may be required under applicable law, or that the Lender may reasonably request, in order to effectuate the transactions contemplated by the Loan


  
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Documents and in order to grant, preserve, protect and perfect the validity and first priority (subject to Liens permitted by Section 8.3) of the Liens created or intended to be
created by the Loan Documents, subject to any limitations, terms and requirements set forth in the Security Agreement (including provisions that only require certain actions to be taken on a quarterly basis). Prior to or upon acquiring,
incorporating or organizing any new Subsidiary, the Borrower will cause such Subsidiary to execute a supplement (in form and substance satisfactory to the Lender) to the Guarantee, the Security Agreement and each other applicable Loan Document in
favor of the Lender and shall enter into such other security agreements and take such other actions as may be required or reasonably requested for the Lender to have a valid Lien with the priority intended to be created on and security interest in
all of the assets of such Subsidiary, subject to no other Liens (other than Liens permitted by Section 8.3) subject to any limitations and requirements set forth in the Security Agreement (including provisions that only require certain
actions to be taken on a quarterly basis). The Borrower will promptly notify the Lender of any subsequently acquired real property and will provide the Lender with a description of such real property, the acquisition date thereof and the purchase
price therefor. In addition, from time to time, each of the Loan Parties and its respective Subsidiaries will, at its cost and expense, promptly secure the Obligations by pledging or creating, or causing to be pledged or created, perfected Liens
with respect to such of its assets and properties as the Lender shall designate, it being agreed that it is the intent of the parties that the Obligations shall be secured by, among other things, substantially all the assets of the Loan Parties and
their respective Subsidiaries (including real property and personal property acquired subsequent to the Closing Date). Such Liens will be created under the Loan Documents in form and substance satisfactory to the Lender, and each of the Loan Parties
and its respective Subsidiaries shall deliver or cause to be delivered to the Lender all such instruments and documents (including mortgages, legal opinions, title insurance policies and lien searches) as the Lender shall reasonably request to
evidence compliance with this Section subject to any limitations and requirements set forth in the Security Agreement (including provisions that only require certain actions to be taken on a quarterly basis). 

SECTION 7.9 Obtaining of Permits, Etc. With respect to Products, each Loan Party and its respective Subsidiaries will obtain, maintain
and preserve, and take all necessary action to timely renew all Permits and accreditations which are necessary and material to the proper conduct of its business. 

SECTION 7.10 Product Licenses. Each of the Loan Parties and its respective Subsidiaries shall (i) maintain each Permit, including
each Key Permit, from, or file any notice or registration in, each jurisdiction in which such Loan Party or its applicable Subsidiary is required to obtain any Permit or Regulatory Authorization or to file any notice or registration that are
necessary and material for the sale and distribution of the Products, it being understood that this Section 7.10 does not concern Permits required to be maintained by customers of Borrower or any of its Affiliates for any research,
development, design, investigation, manufacture, marketing or distribution conducted or sponsored by such customer of the Borrower or any of its Affiliates of any finished product that is a combination of any Product with any drugs of such
customers, and (ii) promptly provide evidence of same to the Lender. 

  
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 SECTION 7.11 Maintenance of Regulatory Authorizations, Contracts, Intellectual Property, Etc.
 
 (a) With respect to the Products, each of the Loan Parties and their respective Subsidiaries will (i) maintain
in full force and effect all Regulatory Authorizations, contract rights, authorizations or other rights necessary and material for the operations of its business, and comply with the terms and conditions applicable to the foregoing excluding the
maintenance of the Regulatory Authorizations that in the commercially reasonable business judgment of the Loan Parties are not necessary or material for the conduct of the business of the Loan Parties; (ii) notify the Lender, promptly after
learning thereof, of any product recalls, safety alerts, corrections, withdrawals, marketing suspensions, removals or the like conducted, to be undertaken or issued, by such Loan Party, its respective Subsidiaries or its respective suppliers whether
or not at the request, demand or order of any Governmental Authority or otherwise with respect to any Product or manufacturing facility owned or operated by any Loan Party or its respective Subsidiaries, or any basis for undertaking or issuing any
such action or item; (iii) design, manufacture, store, label, sell, and distribute all Products in compliance with cGMPs, the FD&C Act, the PHSA, the Controlled Substances Act, and other applicable laws, rules and regulations;
(iv) conduct all studies, tests and preclinical and clinical trials relating to the Products in accordance with all cGCPs, and other applicable laws, rules and regulations; (v) operate all manufacturing facilities in material compliance
with cGMPs, the Controlled Substances Act, and all other applicable laws, rules and regulations; (vi) maintain in full force and effect or pursue the prosecution of, as the case may be, and pay all costs and expenses relating to, all
Intellectual Property owned or controlled by such Loan Party and its respective Subsidiaries and all Material Agreements excluding the maintenance of Intellectual Property that in the commercially reasonable business judgment of the Borrower is not
necessary or material for the conduct of the business of any Loan Party or its Subsidiaries as would be commercially reasonable; (vii) notify the Lender, promptly after learning thereof, of any Infringement or other violation by any Person of
its Intellectual Property; (viii) use commercially reasonable efforts to pursue and maintain in full force and effect legal protection for all Intellectual Property, including Patents, developed or controlled by such Loan Party or any of its
respective Subsidiaries; and (ix) notify the Lender, promptly after learning thereof, of any claim by any Person that the conduct of such Loan Party’s or any such Loan Party’s Subsidiary’s business (including the development,
manufacture, use, sale or other commercialization of any Product) Infringes any Intellectual Property of that Person and, if requested by the Lender, use commercially reasonable efforts to resolve such claim. 

(b) Each of the Loan Parties and its respective Subsidiaries will furnish to the Lender prompt written notice of the following:

 (i) any notice that the FDA or other Governmental Authority is limiting, suspending or revoking any Regulatory
Authorization, changing the market classification or labeling of or otherwise materially restricting the products of any Loan Party or any of its Subsidiaries, or considering any of the foregoing; 

(ii) any Loan Party or any of its respective Subsidiaries becoming subject to any administrative or regulatory action, any FDA
or EMA inspection or any non-routine inspection by any other Person, receipt of inspectional observations (e.g., on FDA Form 483), warning letter, or notice of violation letter, 

  
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or any product of any Loan Party or any of its respective Subsidiaries being seized, withdrawn, recalled, detained, or subject to a suspension of manufacturing, or the commencement of any
proceedings in the United States or any other jurisdiction seeking the withdrawal, recall, suspension, import detention, or seizure of any product are pending or threatened against any Loan Party or any of its respective Subsidiaries; or 

(iii) copies of any written recommendation from any Governmental Authority or other regulatory body that any Loan Party or any
of its respective Subsidiaries, or any obligor to which any Loan Party or any of its respective Subsidiaries provides services, should have its licensure, provider or supplier number, or accreditation suspended, revoked, or limited in any way, or
any penalties or sanctions imposed. 
 SECTION 7.12 Inbound Licenses. Each of the Loan Parties and its respective Subsidiaries will,
promptly after entering into or becoming bound by any inbound license or agreement (other than over-the-counter software that is commercially available to the public): (i) provide written notice to the Lender of the material terms of such
license or agreement with a description of its anticipated and projected impact on such Person’s business and financial condition; and (ii) take such commercially reasonable actions as the Lender may reasonably request to obtain the
consent of, or waiver by, any Person whose consent or waiver is necessary for the Lender to be granted and perfect a valid security interest in such license or agreement and to fully exercise its rights under any of the Loan Documents in the event
of a disposition or liquidation of the rights, assets or property that is the subject of such license or agreement. 
 SECTION 7.13 Cash
Management. Each of the Loan Parties will: 
 (a) maintain a current and complete list of all accounts (of the type
initially set forth on Schedule 6.22) and promptly deliver any updates to such list to the Lender; execute and maintain an account control agreement for each such account (other than the Excluded Accounts), in form and substance reasonably
acceptable to the Lender (each such account, a “Controlled Account”); and maintain each such account as a cash collateral account, with all cash, checks and other similar items of payment in such account securing payment of the
Obligations (and in which such Loan Party shall have granted a Lien to the Lender); 
 (b) deposit promptly, and in any event
no later than five Business Days after the date of receipt thereof, all cash, checks, drafts or other similar items of payment relating to or constituting payments made in respect of any and all accounts and other rights and interests into
Controlled Accounts; and 
 (c) at any time after the occurrence and during the continuance of an Event of Default, at the
request of the Lender, promptly cause all payments constituting proceeds of accounts to be directed into lockbox accounts under agreements in form and substance satisfactory to the Lender. 

  
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 SECTION 7.14 Board Observation Rights. 

(a) The Borrower shall permit one (1) person representing the Lender (the “Observer”) to attend and
observe (but not vote) at all meetings of Recro’s (or the Borrower’s or the Subsidiaries’, as applicable) board of directors and any committee thereof, whether in person, by telephone or otherwise. The Borrower shall notify the
Observer in writing at least two (2) Business Days in advance of (i) the date and time for each general or special meeting of such boards of directors or any committee thereof and (ii) the adoption of any resolutions or actions by
written consent (describing, in reasonable detail, the nature and substance of such action). The general meetings shall take place on no less than a quarterly basis. The Borrower shall concurrently deliver to the Observer all notices and any
materials delivered to the boards of directors or any committees thereof in connection with a board meeting or action to be taken by written consent, including a draft of any material resolutions or actions proposed to be adopted by written consent.
Any such materials delivered to the Observer shall also be delivered by the Borrower to the Lender. The Observer shall be free prior to such meeting or adoption by consent to contact the board of directors and discuss the pending actions to be
taken. 
 (b) The Borrower shall pay the Observer’s reasonable out-of-pocket expenses (including the cost of travel,
meals and lodging) in connection with the attendance of such meetings. 
 (c) If an issue is to be discussed or otherwise
arises at any meeting of the board of directors of the Borrower or committee thereof which, in the reasonable good faith judgment of the board of directors, is not appropriate to be discussed in the presence of the Observer in order to avoid a
conflict of interest on the part of such Observer or to preserve an attorney-client privilege, then such issue may be discussed without the Observer being present and any materials delivered to the board of directors pertaining to such issue need
not be delivered to the Observer, so long as the Observer is given notice of the occurrence of such judgment by the board of directors, that the Observer is being excused, and that certain materials will not be delivered to the Observer, and the
Observer is provided a general description, which shall be true and correct in all material respects, of such withheld materials and matters discussed without the Observer present. 

SECTION 7.15 Post-Closing Items. 

(a) On or before ninety (90) days following the Closing Date, each of the assets and liabilities set forth on Schedule
7.16(a) and any liabilities related thereto (the “Meloxicam Assets and Liabilities”) shall be transferred to and assumed by a direct or indirect, wholly owned Subsidiary of Recro, pursuant to documentation reasonably acceptable
to the Lender. 
 (b) On or before sixty (60) days following the Closing Date, the Lender shall have received evidence
that all deposit accounts, lockboxes, disbursement accounts, investment accounts or other similar accounts of each Borrower Loan Party are Controlled Accounts. 

(c) On the Closing Date, (i) the Merger shall be completed and (ii) the Surviving Entity shall execute and deliver
the Assumption Agreement. 

  
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 ARTICLE VIII 

NEGATIVE COVENANTS 
 The Borrower covenants and
agrees with the Lender that on and after the Closing Date until the Termination Date has occurred, the Loan Parties will perform or cause to be performed the obligations set forth below. 

SECTION 8.1 Business Activities. None of the Loan Parties nor any of their respective Subsidiaries will engage in any line of business
or activity except those business lines and activities engaged in on the date of this Agreement and businesses or activities substantially similar, ancillary, incidental, complementary or related to, or a reasonable extension, development or
expansion thereto. 
 SECTION 8.2 Indebtedness. None of the Loan Parties nor any of their respective Subsidiaries will create, incur,
assume or permit to exist any Indebtedness, other than: 
 (a) Indebtedness in respect of the Obligations; 

(b) until the Closing Date, Indebtedness that is to be repaid in full or for which the obligors therefor are to be released as
further identified in Schedule 8.2(b); 
 (c) Indebtedness existing as of the Closing Date which is identified in
Schedule 8.2(c) (after giving effect to the consummation of the Acquisition and the Merger), and refinancing of such Indebtedness in a principal amount not in excess of that which is outstanding on the Closing Date (as such amount has been
reduced following the Closing Date); 
 (d) unsecured Indebtedness in respect of performance, surety or appeal bonds provided
in the ordinary course of business in an aggregate amount at any time outstanding not to exceed $500,000; 
 (e) Purchase
Money Indebtedness and Capitalized Lease Liabilities not to exceed $500,000 in the aggregate, including of any outstanding Purchase Money Indebtedness and Capitalized Lease Liabilities permitted by Section 8.2(c); 

(f) Permitted Subordinated Indebtedness; and 

(g) Indebtedness of any Borrower Loan Party to any other Borrower Loan Party and Indebtedness of any Non-Borrower Loan Party to
any other Non-Borrower Loan Party; 
 provided that no Indebtedness otherwise permitted by clauses (c), (e), (f),
(g) or (h) shall be assumed, created or otherwise incurred if a Default has occurred and is then continuing or would result therefrom. 

  
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 SECTION 8.3 Liens. None of the Loan Parties nor any of their respective Subsidiaries will
create, incur, assume or permit to exist any Lien upon any of its property (including Capital Securities of any Person), revenues or assets, whether now owned or hereafter acquired, except: 

(a) Liens securing payment of the Obligations; 

(b) until the Closing Date, Liens securing payment of Indebtedness of the type described in Section 8.2(b); 

(c) Liens existing as of the Closing Date and disclosed in Schedule 8.3(c) (after giving effect to the consummation of
the Acquisition and the Merger) securing Indebtedness described in Section 8.2(c), and refinancings of such Indebtedness; provided that no such Lien shall encumber any additional property and the amount of Indebtedness secured by
such Lien is not increased from that existing on the Closing Date (as such Indebtedness may have been permanently reduced subsequent to the Closing Date); 

(d) Liens securing Indebtedness of the Loan Parties and their respective Subsidiaries permitted pursuant to
Section 8.2(e) (provided that (i) such Liens shall be created within 180 days of the acquisition of the assets financed with such Indebtedness and (ii) such Liens do not at any time encumber any property other than the
property so financed); 
 (e) Liens in favor of carriers, warehousemen, mechanics, materialmen and landlords (including
security deposits) granted in the ordinary course of business for amounts not overdue for a period of more than thirty (30) days or being diligently contested in good faith by appropriate proceedings and for which adequate reserves in
accordance with GAAP shall have been set aside on its books; 
 (f) Liens incurred or deposits made in the ordinary course of
business in connection with worker’s compensation, unemployment insurance or other forms of governmental insurance or benefits, or to secure performance of tenders, statutory obligations, bids, leases or other similar obligations (other than
for borrowed money) entered into in the ordinary course of business or to secure obligations on surety, stay, customs and appeal bonds or performance bonds; 

(g) judgment Liens in existence for less than 60 days after the entry thereof or with respect to which execution has been
stayed or the payment of which is covered in full (subject to a customary deductible) by insurance maintained with responsible insurance companies and which do not otherwise result in an Event of Default under Section 9.1(g); 

(h) easements, rights-of-way, zoning restrictions, minor defects or irregularities in title and other similar encumbrances not
interfering in any material respect with the value or use of the property to which such Lien is attached; and with respect to the real property leased by any Loan Party or its Subsidiaries pursuant to any capital lease or other real estate lease,
such Liens existing or of record of which shall be hereinafter placed on the fee interest of such real property by parties other than Holdings, the Loan Parties and its Subsidiaries, including mortgages, deeds of trust, UCC security interest filings
and similar encumbrances; 

  
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 (i) Liens for Taxes not at the time delinquent or thereafter payable without
penalty or being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books; 

(j) Liens disclosed in the Mortgage; 

(k) Liens arising in the ordinary course of business by virtue of any contractual, statutory or common law provision relating
to banker’s Liens, rights of set off or similar rights and remedies covering deposit or securities accounts (including funds or other assets credited thereto) or other funds maintained with a depository institution or securities intermediary,
in each case incurred in the ordinary course of business; 
 (l) the interest of lessors under operating leases and
non-exclusive licensors under license agreements; and 
 (m) non-exclusive licenses or covenants not to sue of patents,
trademarks, copyrights and other intellectual property rights in the ordinary course of business. 
 Notwithstanding anything in the
foregoing to the contrary, none of the Loan Parties nor any of their respective Subsidiaries will create, incur, assume or permit to exist any Lien upon the Meloxicam Assets and Liabilities (other than the reversion right of APIL to the Assigned
Reversion IP Assets (as defined in Exhibit E to the Acquisition Agreement). 
 SECTION 8.4 Financial Covenants. 

(a) Minimum Revenue Base. The Revenue Base for any Fiscal Quarter shall not be less than the amount set forth below for
such Fiscal Quarter: 
  

					
	 Fiscal Quarter Ended
	  	Minimum Revenue Base	 
	 June 30, 2015
	  	$	10,000,000	  
	 September 30, 2015
	  	$	10,000,000	  
	 December 31, 2015
	  	$	10,000,000	  
	 March 31, 2016
	  	$	9,000,000	  
	 June 30, 2016
	  	$	9,000,000	  
	 September 30, 2016
	  	$	9,000,000	  
	 December 31, 2016
	  	$	9,000,000	  
	 March 31, 2017
	  	$	9,000,000	  
	 June 30, 2017
	  	$	9,000,000	  
	 September 30, 2017
	  	$	9,000,000	  
	 December 31, 2017
	  	$	9,000,000	  
	 March 31, 2018
	  	$	10,000,000	  
	 June 30, 2018
	  	$	10,000,000	  
	 September 30, 2018
	  	$	10,000,000	  


  
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	 December 31, 2018
	  	$	10,000,000	  
	 March 31, 2019
	  	$	10,000,000	  
	 June 30, 2019
	  	$	10,000,000	  
	 September 30, 2019
	  	$	10,000,000	  
	 December 31, 2019
	  	$	10,000,000	  
	 March 31, 2020
	  	$	10,000,000	  

 (b) Minimum Liquidity. The Liquidity of Recro and its Subsidiaries on a consolidated
basis shall not at any time be less than $5,000,000. Recro and its Subsidiaries on a consolidated basis shall maintain an amount equal to the amount required under this Section 8.4(b), along with its other cash and Cash Equivalent
Investments, in a Controlled Account. 
 (c) Consolidated Total Leverage Ratio. The Consolidated Total Leverage Ratio
for any Fiscal Quarter shall not be greater than the amount set forth below for such Fiscal Quarter: 
  

					
	 Fiscal Quarter Ended
	  	Consolidated Total Leverage Ratio	 
	 June 30, 2015
	  	 	4.00:1.00	  
	 September 30, 2015
	  	 	4.00:1.00	  
	 December 31, 2015
	  	 	4.00:1.00	  
	 March 31, 2016
	  	 	4.00:1.00	  
	 June 30, 2016
	  	 	4.00:1.00	  
	 September 30, 2016
	  	 	4.00:1.00	  
	 December 31, 2016
	  	 	4.00:1.00	  
	 March 31, 2017
	  	 	4.00:1.00	  
	 June 30, 2017
	  	 	4.00:1.00	  
	 September 30, 2017
	  	 	4.00:1.00	  
	 December 31, 2017
	  	 	4.00:1.00	  
	 March 31, 2018
	  	 	3.75:1.00	  
	 June 30, 2018
	  	 	3.50:1.00	  
	 September 30, 2018
	  	 	3.25:1.00	  
	 December 31, 2018
	  	 	3.00:1.00	  
	 March 31, 2019
	  	 	2.75:1.00	  
	 June 30, 2019
	  	 	2.50:1.00	  
	 September 30, 2019
	  	 	2.25:1.00	  
	 December 31, 2019
	  	 	2.00:1.00	  
	 March 31, 2020
	  	 	2.00:1.00	  

 (d) Maximum Capital Expenditures. The Borrower shall not permit Consolidated Capital
Expenditures (i) during any Fiscal Quarter, beginning with the Fiscal Quarter ending June 30, 2015, to exceed $2,000,000, or (ii) during any period of four consecutive Fiscal Quarters, beginning with the four Fiscal Quarter period
ending March 31, 2016, to exceed $4,000,000. 

  
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 SECTION 8.5 Investments. None of the Loan Parties nor any of their respective Subsidiaries
will purchase, make, incur, assume or permit to exist any Investment in any other Person, except: 
 (a) Investments existing
on the Closing Date and identified in Schedule 8.5(a) (after giving effect to the consummation of the Acquisition and the Merger); 

(b) Cash Equivalent Investments; provided that any Investment which when made complies with the requirements of the definition
of the term “Cash Equivalent Investment” may continue to be held notwithstanding that such Investment if made thereafter would not comply with such requirements; 

(c) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and
disputes with, customers and suppliers, in each case in the ordinary course of business; 
 (d) Investments consisting of any
deferred portion of the sales price received by any Loan Party or any of its respective Subsidiaries in connection with any Disposition permitted under Section 8.8; 

(e) Investments constituting (i) accounts receivable arising, (ii) trade debt granted, or (iii) deposits made in
connection with the purchase price of goods or services, in each case in the ordinary course of business; 
 (f) other
Investments in an amount not to exceed $100,000 over the term of this Agreement, provided that no Investment otherwise permitted by this clause (f) shall be permitted to be made if any Default has occurred and is continuing or would
result therefrom; 
 (g) Investments in the form of capital contributions and the ownership of Capital Securities that are
not Disqualified Capital Securities made by one Loan Party in another Loan Party that is its direct Subsidiary (other than any Investment by a Borrower Loan Party in a Non-Borrower Loan Party); 

(h) Loans permitted under Section 8.2(g); and 

(i) the Acquisition and the Merger. 

SECTION 8.6 Restricted Payments, Etc. None of the Loan Parties nor any of their respective Subsidiaries will declare or make a
Restricted Payment, or make any deposit for any Restricted Payment, other than (i) Restricted Payments made by a Borrower Loan Party to any other Borrower Loan Party or (ii) Restricted Payments made by any Non-Borrower Loan Party to any
other Non-Borrower Loan Party, other than Permitted Tax Distributions. 
 SECTION 8.7 Consolidation, Merger; Permitted Acquisitions,
Etc. Except for the Acquisition and the Merger, none of the Loan Parties nor any of their respective Subsidiaries will liquidate or dissolve, consolidate with, or merge into or with, any other Person, or purchase or otherwise acquire all or
substantially all of the assets of any Person (or any division thereof), 

  
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except that, so long as no Event of Default has occurred and is continuing (or would occur as a result), any Subsidiary may liquidate or dissolve voluntarily into, and may merge with and into,
the Borrower or any Subsidiary that is organized or incorporated in the same jurisdiction as such Subsidiary (provided that Persons organized in different states of the United States shall be deemed to be organized in the same jurisdiction for
purposes of this Section 8.7). 
 SECTION 8.8 Permitted Dispositions. None of the Loan Parties nor any of their
respective Subsidiaries will Dispose of any of its assets (including accounts receivable and Capital Securities of the Borrower and any other Loan Party) to any Person in one transaction or a series of transactions unless such Disposition
(i) is inventory or obsolete, damaged, worn out or surplus property Disposed of in the ordinary course of its business or (ii) is permitted by Section 8.7. 

SECTION 8.9 Modification of Certain Agreements. None of the Loan Parties nor any of their respective Subsidiaries will consent to any
amendment, supplement, waiver or other modification of, or enter into any forbearance from exercising any rights with respect to, the terms or provisions contained in (i) any Organic Documents of such Person, if the result would have an adverse
effect on the rights or remedies of the Lender (provided that Surviving Entity may change its name immediately after the Merger to Recro Gainesville LLC), (ii) any agreement governing any Permitted Subordinated Indebtedness, if the result would
shorten the maturity date thereof or advance the date on which any cash payment is required to be made thereon or would otherwise change any terms thereof in a manner adverse to the Lender, or (iii) any intracompany license agreement between or
among the Loan Parties and their respective Subsidiaries, including those agreements listed on Schedule 8.9. 
 SECTION 8.10
Transactions with Affiliates. None of the Loan Parties nor any of their respective Subsidiaries will enter into or cause or permit to exist any arrangement, transaction or contract (including for the purchase, lease or exchange of property or
the rendering of services) with, or make any payment to, any of its Affiliates, unless such arrangement, transaction, contract or payment (i) is between or among the Loan Parties or any of their respective Subsidiaries or with Malvern
Consulting Group, Inc., (ii) is on fair and reasonable terms no less favorable to the applicable Loan Party or its applicable Subsidiary than it could obtain in an arm’s-length transaction with a Person that is not one of its Affiliates
and (iii) is of the kind which would be entered into by a prudent Person in its position with a Person that is not one of its Affiliates. No Borrower Loan Party will enter into or cause or permit to exist any arrangement, transaction or
contract (including for the purchase, lease or exchange of property or the rendering of services) with, or make any payment to, any Non-Borrower Loan Party, unless such arrangement, transaction, contract or payment is for the provision of corporate
overhead services by Recro to any Borrower Loan Party which services shall not involve any payment of cash by any Borrower Loan Party to Recro on a date earlier than the date that is 91 days after the Maturity Date. 

SECTION 8.11 Restrictive Agreements, Etc. None of the Loan Parties nor any of their respective Subsidiaries will enter into any
agreement prohibiting (i) the creation or assumption of any Lien upon its properties, revenues or assets, whether now owned or hereafter acquired, (ii) the ability of any Loan Party to amend or otherwise modify any Loan Document, or
(iii) the ability of the Borrower or any other Loan Party or its respective Subsidiaries to make any 

  
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payments, directly or indirectly, to the Borrower or any Guarantor, including by way of dividends, advances, repayments of loans, reimbursements of management and other intercompany charges,
expenses and accruals or other returns on investments. The foregoing prohibitions shall not apply to restrictions contained (x) in any Loan Document, or (y) in the case of clause (i), any agreement governing any Indebtedness
permitted by Section 8.2(e) as to the assets financed with the proceeds of such Indebtedness. 
 SECTION 8.12 Sale and
Leaseback. None of the Loan Parties nor any of their respective Subsidiaries will directly or indirectly enter into any agreement or arrangement providing for the sale or transfer by it of any property (now owned or hereafter acquired) to a
Person and the subsequent lease or rental of such property or other similar property from such Person. 
 SECTION 8.13 Product
Agreements. None of the Loan Parties nor any of their respective Subsidiaries will enter into any amendment with respect to any existing Product Agreement or enter into any new Product Agreement that contains (a) any provision that permits
any counterparty other than a Loan Party or its respective Subsidiaries to terminate such Product Agreement for any reasons related to the insolvency or change of control of any Loan Party or its respective Subsidiaries or assignment of such Product
Agreement by any Loan Party or its respective Subsidiaries, (b) any provision which restricts or penalizes a security interest in, or the assignment of, any Product Agreements, upon the sale, merger or other disposition of all or a material
portion of a Product to which such Product Agreement relates, or (c) any other provision that has or is likely to adversely effect, in any material respect, any Product to which such agreement relates or to the Lender’s rights hereunder.

 SECTION 8.14 Change in Name, Location or Executive Office or Executive Management; Change in Fiscal Year. None of the Loan Parties
nor any of their respective Subsidiaries will (i) change its legal name or any trade name used to identify it in the conduct of its business or ownership of its properties (provided that Surviving Entity may change its name immediately after
the Merger to Recro Gainesville LLC), (ii) change its jurisdiction of organization or registration or legal structure, (iii) relocate its chief executive office, principal place of business or any office in which it maintains books or
records relating to its business (including the establishment of any new office or facility after the Closing Date) without the prior written consent of the Lender, which consent shall not be unreasonably withheld, (iv) change its federal
taxpayer identification number or organizational number (or equivalent) without 10 days’ prior written notice to the Lender, (v) replace its chief executive officer or chief financial officer without written notification to the Lender
within 30 days thereafter, or (vi) change its Fiscal Year or any of its Fiscal Quarters. 
 SECTION 8.15 Benefit Plans and
Agreements. 
 (a) None of the Loan Parties nor any of their respective Subsidiaries will (i) become the sponsor of,
incur any responsibility to contribute to or otherwise incur actual or potential liability with respect to, any Benefit Plan, (ii) allow any “employee benefit plan” as defined in section 3(3) of ERISA that provides retirement benefits
and that is sponsored by any Loan Party or any of its respective Subsidiaries, or any of their ERISA Affiliates (or under which any of these entities has any actual or potential liability), and is 

  
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intended to be tax qualified under section 401 of the Code to cease to be tax qualified, (iii) allow the assets of any tax qualified retirement plan to become invested in Capital Securities
of any Loan Party or any of its respective Subsidiaries or (iv) allow any employee benefit plan, program or arrangement sponsored, maintained, contributed to or required to be contributed to by any Loan Party or any of its respective
Subsidiaries (or under which any of these entities has any actual or potential liability) to fail to comply in all material respects with its terms and applicable law or to become self-insured. 

(b) Except as set forth on Schedule 8.15(b), none of the Loan Parties nor any of their respective Subsidiaries will
enter into any employment, severance, independent contractor, consulting agreements or tax gross-up agreement or grant any equity awards other than in the course of ordinary business or consistent with past practice of the Loan Parties. 

SECTION 8.16 Non-Consolidation. Each of the Loan Parties and each of its Subsidiaries will (i) maintain entity records and books
of account (including payroll accounts) separate from those of any other Subsidiary; (ii) not commingle its funds or assets with those of any other Subsidiary; and (iii) take any such other actions to prevent the commingling of operations
and/or assets among the Loan Parties and their Subsidiaries as may be reasonably requested by the Lender. 
 ARTICLE IX 

EVENTS OF DEFAULT 
 SECTION 9.1
Listing of Events of Default. Each of the following events or occurrences described in this Article IX shall constitute an “Event of Default”. 

(a) Non-Payment of Obligations. The Borrower shall default in the payment or prepayment when due of (i) any
principal of or interest on the Loan, or (ii) any fee described in Article III or any other monetary Obligation, and in the case of clause (ii) such default shall continue unremedied for a period of two Business Days after
such amount was due. 
 (b) Breach of Warranty. Any representation or warranty made or deemed to be made by any Loan
Party or any of its respective Subsidiaries in any Loan Document (including any certificates delivered pursuant to Article V) is or shall be incorrect when made or deemed to have been made in any material respect. 

(c) Non-Performance of Certain Covenants and Obligations. Any Loan Party or any of its respective Subsidiaries shall
default in the due performance or observance of any of its obligations under Section 7.1, Section 7.7, Section 7.13, Section 7.15, Article VIII or Article XI. 

(d) Non-Performance of Other Covenants and Obligations. Any Loan Party or any of its respective Subsidiaries shall
default in the due performance and observance of any other covenant, obligation or agreement contained in any Loan Document executed by it, and such default shall continue unremedied for a period of 30 days after the earlier to occur of
(i) notice thereof given to the Borrower by the Lender or (ii) the date on which such Loan Party or Subsidiary has knowledge of such default. 

  
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 (e) Default on Other Indebtedness. Any Loan Party or any of its respective
Subsidiaries shall fail to pay any amount when due (subject to any applicable grace period), whether by acceleration or otherwise, of any principal or stated amount of, or interest or fees on, any Indebtedness of any Loan Party or Subsidiary having
a principal or stated amount, individually or in the aggregate, in excess of $500,000, or a default shall occur in the performance or observance of any obligation or condition with respect to such Indebtedness if the effect of such default is to
accelerate the maturity of any such Indebtedness or such default shall continue unremedied for any applicable period of time sufficient to permit the holder or holders of such Indebtedness, or any trustee or agent for such holders, to cause or
declare such Indebtedness to become due and payable or to require such Indebtedness to be prepaid, redeemed, purchased or defeased, or require an offer to purchase or defease such Indebtedness to be made, prior to its expressed maturity. 

(f) Judgments. Any judgment or order for the payment of money individually or in the aggregate in excess of $500,000
(exclusive of any amounts fully covered by insurance (less any applicable deductible) and as to which the insurer has acknowledged its responsibility to cover such judgment or order) shall be rendered against any Loan Party or any of its
Subsidiaries and such judgment shall not have been vacated or discharged or stayed or bonded pending appeal within 30 days after the entry thereof or enforcement proceedings shall have been commenced by any creditor upon such judgment or order.

 (g) Change in Control. Any Change in Control shall occur. 

(h) Bankruptcy, Insolvency, Etc. Any Loan Party or any of its respective Subsidiaries shall 

(i) become insolvent or generally fail to pay, or admit in writing its inability or unwillingness generally to pay, debts as
they become due; 
 (ii) apply for, consent to, or acquiesce in the appointment of a trustee, receiver, sequestrator or other
custodian for any substantial part of the property of any thereof, or make a general assignment for the benefit of creditors; 

(iii) in the absence of such application, consent or acquiescence in or permit or suffer to exist the appointment of a trustee,
receiver, sequestrator or other custodian for a substantial part of the property of any thereof, and such trustee, receiver, sequestrator or other custodian shall not be discharged within 60 days; provided that each Loan Party and its
respective Subsidiaries hereby expressly authorizes the Lender to appear in any court conducting any relevant proceeding during such 60-day period to preserve, protect and defend its rights under the Loan Documents; 

  
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 (iv) permit or suffer to exist the commencement of any bankruptcy,
reorganization, debt arrangement or other case or proceeding under any bankruptcy or insolvency law or any dissolution, winding up or liquidation proceeding, in respect thereof, and, if any such case or proceeding is not commenced by such Loan Party
or any of its respective Subsidiaries, such case or proceeding shall be consented to or acquiesced in by such Loan Party or its applicable respective Subsidiary or shall result in the entry of an order for relief or shall remain for 60 days
undismissed; provided that each Loan Party and its respective Subsidiaries hereby expressly authorizes the Lender to appear in any court conducting any such case or proceeding during such 60-day period
to preserve, protect and defend its rights under the Loan Documents; or 
 (v) take any action authorizing, or in furtherance
of, any of the foregoing. 
 (i) Impairment of Security, Etc. Any Loan Document or any Lien granted thereunder shall
(except in accordance with its terms), in whole or in part, terminate, cease to be effective or cease to be the legally valid, binding and enforceable obligation of any Loan Party thereto; any Loan Party or any other party shall, directly or
indirectly, contest in any manner such effectiveness, validity, binding nature or enforceability; or, except as permitted under any Loan Document, any Lien securing any Obligation shall, in whole or in part, cease to be a perfected first priority
Lien. 
 (j) Key Permit Events. Any Key Permit or any Loan Party’s or any Loan Party’s Subsidiary’s
material rights or interests thereunder is terminated or amended in any manner adverse to such Loan Party or its applicable Subsidiary in any material respect. 

(k) Material Adverse Change. Any circumstance occurs that could reasonably be expected to have a Material Adverse
Effect. 
 (l) Key Person Event. If any or all of the Key Persons (or any replacement therefor appointed in accordance
with this Section 9.1(l)) ceases to be employed full time by Recro and actively working in his or her respective office set forth opposite his or her name in the definition of “Key Persons” in Section 1.1 hereof, unless
within 180 days after such individual ceases to be employed full time and actively working, Recro hires a replacement acceptable to the Lender (such acceptance not to be unreasonably withheld). 

(m) Regulatory Matters. If any of the following occurs: (i) the FDA, CMS, EMA, DEA, or any other Governmental
Authority (A) issues a letter or other communication asserting that any Product lacks a required Regulatory Authorization or (B) initiates an enforcement action against, or issues a warning letter or takes any other action with respect to,
any Loan Party or any of its respective Subsidiaries, or any of its Products or the manufacturing facilities therefor, that causes such Loan Party or its applicable Subsidiary to discontinue or suspend marketing or withdraw any of its Products, or
causes a delay in the manufacture or offering of any of its Products, which discontinuance, withdrawal or delay could reasonably be expected to last for more than 

  
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45 days; (ii) a recall which could reasonably be expected to result in liability to any Loan Party or any of its respective Subsidiaries in excess of $500,000; or (iii) any Loan Party
or any of its respective Subsidiaries enters into a settlement agreement with the FDA, CMS, EMA, DEA, or any other Governmental Authority that results in aggregate liability as to any single or related series of transactions, incidents or conditions
in excess of $500,000. 
 (n) Material Agreements. (i) Any Loan Party or any of its respective Subsidiaries
breaches any Covered Agreement, which breach permits (or could be reasonably expected to permit) the counterparty to terminate such Covered Agreement if such breach is not cured within the applicable cure period, and such breach continues uncured
for more than the applicable cure period specified in the relevant agreement. 
 SECTION 9.2 Action if Bankruptcy. If any Event of
Default described in clauses (i) through (iv) of Section 9.1(h) or Section 9.1(i) with respect to the Borrower shall occur, the Commitments (if not theretofore terminated) shall automatically terminate and the
outstanding principal amount of the Loan and all other Obligations shall automatically be and become immediately due and payable, without notice or demand to any Person. 

SECTION 9.3 Action if Other Event of Default. If any Event of Default (other than any Event of Default described in clauses
(i) through (iv) of Section 9.1(h) or Section 9.1(i)) shall occur for any reason, whether voluntary or involuntary, and be continuing, the Lender may, by notice to the Borrower declare all or any portion of the
outstanding principal amount of the Loan and other Obligations to be due and payable and/or the Commitment (if not theretofore terminated) to be terminated, whereupon the full unpaid amount of the Loan and other Obligations which shall be so
declared due and payable shall be and become immediately due and payable, without further notice, demand or presentment, and the Commitment shall terminate. 

ARTICLE X 
 MISCELLANEOUS
PROVISIONS 
 SECTION 10.1 Waivers, Amendments, Etc. The provisions of each Loan Document may from time to time be amended, modified
or waived, if such amendment, modification or waiver is in writing and consented to by the Lender and the Borrower. No failure or delay on the part of the Lender in exercising any power or right under any Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such power or right preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on any Loan Party or any of its respective Subsidiaries
in any case shall entitle it or any of them to any notice or demand in similar or other circumstances. No waiver or approval by the Lender under any Loan Document shall, except as may be otherwise stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval hereunder shall require any similar or dissimilar waiver or approval thereafter to be granted hereunder. 

SECTION 10.2 Notices; Time. All notices and other communications provided under any Loan Document shall be in writing or by facsimile
and addressed, delivered or transmitted, if to the Borrower or the Lender, to the applicable Person at its address or facsimile number set 

  
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forth on Schedule 10.2 hereto, or at such other address or facsimile number as may be designated by such party in a notice to the other parties, and a copy of all notices shall be given by
email at the email address for a party set forth therein, if any, or at such other email address as designated by such party to the other parties. Any notice, if mailed and properly addressed with postage prepaid or if properly addressed and sent by
pre-paid courier service, shall be deemed given when received; any notice, if transmitted by facsimile, shall be deemed given when the confirmation of transmission thereof is received by the transmitter. Unless otherwise indicated, all references to
the time of a day in a Loan Document shall refer to New York City time. 
 SECTION 10.3 Payment of Costs and Expenses. The Borrower
agrees to pay on demand all expenses of the Lender (including the reasonable fees and out-of-pocket expenses of Covington & Burling LLP, counsel to the Lender, and of local counsel, if any, who may be retained by or on behalf of the Lender)
in connection with: 
 (a) the negotiation, preparation, execution and delivery of each Loan Document, including schedules
and exhibits, and any amendments, waivers, consents, supplements or other modifications to any Loan Document as may from time to time hereafter be required, whether or not the transactions contemplated hereby are consummated; 

(b) the filing or recording of any Loan Document (including any financing statements) and all amendments, supplements,
amendment and restatements and other modifications to any thereof, searches made following the Closing Date in jurisdictions where financing statements (or other documents evidencing Liens in favor of the Lender) have been recorded and any and all
other documents or instruments of further assurance required to be filed or recorded by the terms of any Loan Document; and 

(c) the preparation and review of the form of any document or instrument relevant to any Loan Document. 

The Borrower further agrees to pay, and to hold the Lender harmless from all liability for, any stamp or other taxes which may be payable in connection with
the execution or delivery of each Loan Document, the Loan or the issuance of the Note. The Borrower also agrees to reimburse the Lender upon demand for all reasonable out-of-pocket expenses (including reasonable attorneys’ fees and legal
expenses of counsel to the Lender) incurred by the Lender in connection with (x) the negotiation of any restructuring or “work-out” with the Borrower, whether or not consummated, of any Obligations and (y) the enforcement of any
Obligations. 
 SECTION 10.4 Indemnification. In consideration of the execution and delivery of this Agreement by the Lender, the
Borrower hereby indemnifies, agrees to defend, exonerates and holds the Lender and each of its officers, directors, employees and agents (collectively, the “Indemnified Parties”) free and harmless from and against any and all
actions, causes of action, suits, losses, costs, liabilities, obligations and damages, and expenses incurred in connection therewith (irrespective of whether any such Indemnified Party is a party to the action for which indemnification hereunder is
sought), including reasonable attorneys’ and professionals’ fees and disbursements, whether incurred in connection with actions between the parties hereto or the parties hereto and third parties (collectively, the “Indemnified
Liabilities”), including, without 

  
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limitation, Indemnified Liabilities arising out of or relating to (i) the entering into and performance of any Loan Document by any of the Indemnified Parties (including any action brought
by or on behalf of the Borrower as the result of any determination by the Lender pursuant to Article V not to fund any Loan), (ii) any Environmental Liability, but excluding any Indemnified Liabilities for any Indemnified Party to the
extent that they arise from such Indemnified Party’s gross negligence or willful misconduct. If and to the extent that the foregoing indemnification may be unenforceable for any reason, the Borrower agrees to make the maximum contribution to
the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. This Section 10.4 shall not apply with respect to Taxes other than any Taxes that represent actions, causes of action, suits, losses,
costs, liabilities, obligations and damages and expenses arising from any third party claim or other non-Tax claim. 
 SECTION 10.5
Survival. The obligations of the Borrower under Section 4.1, Section 4.2, Section 4.3, Section 10.3 and Section 10.4, shall in each case survive any assignment by the Lender and the
occurrence of the Termination Date. The representations and warranties made by the Borrower in each Loan Document shall survive the execution and delivery of such Loan Document. 

SECTION 10.6 Severability. Any provision of any Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to
such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of such Loan Document or affecting the validity or enforceability of such provision in any other
jurisdiction. 
 SECTION 10.7 Headings. The various headings of each Loan Document are inserted for convenience only and shall not
affect the meaning or interpretation of such Loan Document or any provisions thereof. 
 SECTION 10.8 Execution in Counterparts,
Effectiveness, Etc. This Agreement may be executed by the parties hereto in several counterparts, each of which shall be an original and all of which shall constitute together but one and the same agreement. This Agreement shall become effective
when counterparts hereof executed on behalf of the Borrower and the Lender, shall have been received by the Lender. Delivery of an executed counterpart of a signature page to this Agreement by email (e.g. “pdf” or “tiff”) or
telecopy shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 10.9 Governing Law; Entire
Agreement. EACH LOAN DOCUMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT CONTEMPLATED HEREBY AND THEREBY
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). The Loan Documents constitute the
entire understanding among the parties hereto with respect to the subject matter thereof and supersede any prior agreements, written or oral, with respect thereto. 

  
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 SECTION 10.10 Successors and Assigns. This Agreement shall be binding upon and shall inure
to the benefit of the parties hereto and their respective successors and assigns; provided that the Borrower may not assign or transfer its rights or obligations hereunder without the consent of the Lender; provided, further,
that the Lender may not, directly or indirectly, assign or transfer its rights or obligations hereunder or under the other Loan Documents to a Restricted Assignee or any Person that controls a Restricted Assignee without the prior written consent of
the Borrower, not to be unreasonably withheld or delayed, except such consent shall not be required in the case that an Event of Default has occurred and is continuing. 

SECTION 10.11 Other Transactions. Nothing contained herein shall preclude the Lender, from engaging in any transaction, in addition to
those contemplated by the Loan Documents, with the Borrower or any of its Affiliates in which the Borrower or such Affiliate is not restricted hereby from engaging with any other Person. 

SECTION 10.12 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH, ANY LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER OR THE BORROWER IN CONNECTION HEREWITH OR THEREWITH SHALL BE BROUGHT AND MAINTAINED IN THE COURTS OF THE BOROUGH OF
MANHATTAN IN THE CITY OF NEW YORK IN THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE LENDER’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE BORROWER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE
WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN SECTION 10.2. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY
HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE BORROWER HAS OR HEREAFTER MAY ACQUIRE ANY
IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE BORROWER HEREBY IRREVOCABLY
WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THE LOAN DOCUMENTS. 
 SECTION 10.13
Waiver of Jury Trial. THE LENDER AND THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING
OUT OF, UNDER, OR IN CONNECTION WITH, EACH LOAN DOCUMENT, OR ANY COURSE OF 

  
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CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER OR THE BORROWER IN CONNECTION THEREWITH. THE BORROWER ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL
AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDER ENTERING INTO THE LOAN DOCUMENTS. 

SECTION 10.14 Confidential Information. Subject to the provisions of Section 10.15, at all times prior to the Termination
Date, the Receiving Party shall keep confidential and shall not publish or otherwise disclose any Confidential Information furnished to it by the Disclosing Party, except to those of the Receiving Party’s employees, advisors or
consultants’ who have a need to know such information to assist such Party in the performance of such Party s obligations or in the exercise of such Party’s rights hereunder and who are subject to reasonable obligations of confidentiality
(collectively, “Recipients”). Notwithstanding anything to the contrary set forth herein, (a) the Lender may disclose this Agreement and the terms and conditions hereof and any information related hereto, to (i) its
Affiliates, (ii) potential and actual assignees of any of the Lender’s rights hereunder and (iii) potential and actual investors in, or lenders to, the Lender (including, in each of the foregoing cases, such Person’s employees,
advisors or consultants); provided that in each case, unless an Event of Default has occurred and is continuing, each such Recipient shall be subject to reasonable obligations of confidentiality; and (b) the Borrower may disclose this
Agreement and the terms and conditions hereof and information related hereto to the extent that this Agreement, such terms, condition or information, as applicable, are publicly available on the U.S. Securities and Exchange Commission EDGAR website,
to potential or actual permitted acquirers or assignees, collaborators and other (sub)licensees, permitted subcontractors, investment bankers, investors, lenders (including, in each of the foregoing cases, such Person’s employees, advisors or
consultants who have a need to receive and review such information); provided that in each case, each such Recipient shall be subject to reasonable obligations of confidentiality. In addition to the foregoing, the Receiving Party may disclose
Confidential Information belonging to the Disclosing Party to the extent (and only to the extent) such disclosure is reasonably necessary in order to comply with applicable laws (including any securities law or regulation or the rules of a
securities exchange) and with judicial process, if in the reasonable opinion of the Receiving Party’s counsel, such disclosure is necessary for such compliance, provided that the Receiving Party (x) will only disclose those portions
of the Confidential Information that are necessary or required to be so disclosed, and (y) will notify the Disclosing Party of the Receiving Party’s intent to make any disclosure pursuant thereto sufficiently prior to making such
disclosure so as to allow the Disclosing Party time to take whatever action it may deem appropriate to protect the confidentiality of the information to be disclosed. 

SECTION 10.15 Exceptions to Confidentiality. The Receiving Party’s obligations set forth in this Agreement shall not extend to any
Confidential Information of the Disclosing Party: 
 (a) that is or hereafter becomes part of the public domain (other than
as a result of a disclosure by the Receiving Party or its Recipients in violation of this Agreement); 

  
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 (b) that is received from a Third Party without restriction on disclosure and
without, to the knowledge of the Receiving Party, breach of any agreement between such Third Party and the Disclosing Party; 

(c) that the Receiving Party can demonstrate by competent evidence was already in its possession without any limitation on
disclosure prior to its receipt from the Disclosing Party; 
 (d) that is generally made available to third parties by the
Disclosing Party without restriction on disclosure; or 
 (e) that the Receiving Party can demonstrate by competent evidence
was independently developed by the Receiving Party without use of or reference to the Confidential Information. 
 ARTICLE XI 

CERTAIN MATTERS PENDING CLOSING 
 The Borrower
covenants and agrees with the Lender that on and after the date hereof until the Closing Date, the Loan Parties will perform or cause to be performed the obligations set forth below. 

SECTION 11.1 Certain Conduct Pending Closing. None of the Loan Parties, nor any of their respective Subsidiaries, will solicit,
initiate, entertain or permit, or enter into any discussions in respect of, any issues, offerings, placements or arrangements of any debt securities or commercial bank or other credit facilities (including refinancings and renewals of debt)
competing with the Commitment and the Loan to be provided under this Agreement. 
 [Signature Page Follows] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized as of the day and year first above written. 
  

					
	 RECRO PHARMA LLC
 as the
Borrower

		
	By:		 /s/ Randall Mack

			
			Name:		Randall Mack
			Title:		President
	
	 ORBIMED ROYALTY OPPORTUNITIES II, LP

as the Lender

	
	 By OrbiMed Advisors LLC
 its
investment manager

		
	By:		 /s/ Samuel D. Isaly

			
			Name:		Samuel D. Isaly
			Title:		Managing Member


 Signature Page to Credit Agreement 







 EXHIBIT A 

FORM OF PROMISSORY NOTE 
  

			
	$50,000,000		[—], 2015

 FOR VALUE RECEIVED, RECRO GAINESVILLE LLC, a Massachusetts limited liability company (the
“Borrower”), hereby promises to pay to the order of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the “Lender”), on the
Maturity Date the principal sum of FIFTY MILLION DOLLARS ($50,000,000) or, if less, the aggregate unpaid principal amount of the Loan made by the Lender pursuant to the Credit Agreement, dated as of March 7, 2015 (as amended, restated,
supplemented or otherwise modified from time to time, the “Credit Agreement”), by and between the Borrower and the Lender. Unless otherwise defined herein or the context otherwise requires, terms used in this Note have the meanings
provided in the Credit Agreement. 
 The Borrower also promises to pay interest on the unpaid principal amount hereof from time to time
outstanding from the date hereof until maturity (whether by acceleration or otherwise) and, after maturity upon demand, until paid in full, at the rates per annum and on the dates specified in the Credit Agreement, as well as any other amounts that
may be due to the Lender upon maturity (whether by acceleration or otherwise) under or in respect of this Note. 
 Payments of both
principal and interest are to be made in U.S. Dollars in same day or immediately available funds to the account designated by the Lender pursuant to the Credit Agreement. 

This Note is referred to in, and evidences Indebtedness incurred under, the Credit Agreement, to which reference is made for a description of
the security and guarantee for this Note and for a statement of the terms and conditions on which the Borrower is permitted and required to make prepayments and repayments of the unpaid principal amount of the Indebtedness evidenced by this Note and
on which such Indebtedness may be declared to be immediately due and payable. Any prepaid principal of this Note may not be reborrowed. 

All parties hereto, whether as makers, endorsers or otherwise, severally waive presentment for payment, demand, protest and notice of
dishonor. 
 THIS NOTE HAS BEEN DELIVERED IN NEW YORK, NEW YORK AND SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). 

[ Signature Page Follows ] 







 
			
	RECRO GAINESVILLE LLC
		
	By:		  

			Name:
			Title:


 [ Signature Page to Promissory Note ] 







 EXHIBIT B 

FORM OF LOAN REQUEST 
 [DATE] 

OrbiMed Royalty Opportunities II, LP 
 c/o OrbiMed Advisors LLC

 601 Lexington Avenue, 54th Floor 
 New York, NY 10022 

Attention: Tadd Wessel and Matthew Rizzo 
 Ladies and Gentlemen:

 Reference is hereby made to that certain Credit Agreement, dated as of March 7, 2015 (as amended, restated, supplemented or
otherwise modified from time to time and in effect on the date hereof, the “Credit Agreement”), by and between RECRO PHARMA LLC, a Delaware limited liability company (the “Borrower”), and ORBIMED ROYALTY
OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the “Lender”). 

Unless otherwise defined herein or the context otherwise requires, terms used herein have the meanings provided in the Credit Agreement. 

Pursuant to the provisions of Section 2.2 of the Credit Agreement, the Borrower hereby requests a Loan in the original principal amount
of $50,000,000 to be made on                  , 201     (the “Proposed Disbursement Date”), which Loan shall be evidenced by that
certain Promissory Note dated as of [—], 2015 in the aggregate original principal amount of $50,000,000.00 by Borrower in favor of Lender. 

The undersigned hereby represent(s) and warrant(s) to the Lender that: 

(a) the proceeds of the proposed Loan are to be used for the purposes set forth in Section 7.7 of the Credit Agreement; 

(b) bank account details and wire transfer instructions for disbursement of the proceeds of the proposed Loan are set forth on Schedule
A hereto; 
 (c) no Default has occurred and is continuing or would result from the proposed Loan; 

(d) all conditions required to be satisfied, as set forth in Article V of the Credit Agreement, as applicable, as of the Proposed Disbursement
Date for the making of the Loan requested hereby have been, and are, fully satisfied; and 
 (e) the representations and warranties
contained in Article VI of the Credit Agreement and in the other Loan Documents are true and correct in all respects (in the case of any representation or warranty qualified by materiality or Material Adverse Effect) or in all material respects (in
the case of any representation or warranty not qualified by materiality or Material Adverse Effect), before and after giving effect to the making of the proposed Loan and to the application of the proceeds thereof, as though made on and as of the
date hereof. 







 The officer signing below is an Authorized Officer of the undersigned and is authorized to
request the Loan contemplated hereby and issue this Loan Request on behalf of the undersigned. 
 [ Signature Page Follows ]


  
 2 








 
			
	Very truly yours,
	
	RECRO PHARMA LLC,
	
	as the Borrower
		
	By:		  

		
			Name:
			Title:


 [ Signature Page to Loan Request ] 







 Schedule A 

Disbursement / Wire Instructions 

[ Schedules to Loan Request ] 







 EXHIBIT C 

FORM OF COMPLIANCE CERTIFICATE 

[RECRO PHARMA LLC] / [RECRO GAINESVILLE LLC] 

COMPUTATION DATE:                  , 20    

 This Compliance Certificate (this “Certificate”) is delivered pursuant to [Section 5.7][Section 7.1(d)] of the Credit
Agreement, dated as of March 7, 2015 (as amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and between (i) (A) prior to consummation of the Merger, Recro Pharma LLC, a Delaware
limited liability company (“Recro LLC”) and (B) from and after consummation of the Merger, Recro Gainesville LLC, a Massachusetts limited liability company (the “Surviving Entity”, and together with Recro LLC,
the “Borrower”), and (ii) ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the “Lender”). Unless otherwise defined
herein or the context otherwise requires, terms used in this Certificate have the meanings provided in the Credit Agreement. 
 This
Certificate relates to the [calendar month][Fiscal Quarter][Fiscal Year] commencing on                  , 20     and ending on
                 , 20     (such latter date being the “Computation Date”). 

The undersigned is duly authorized to execute and deliver this Certificate on behalf of the Borrower. By executing this Certificate, the
undersigned hereby certifies to the Lender that as of the Computation Date: 
 (a) [Attached hereto as Annex I are
(i) unaudited reports of the Liquidity of the Borrower at the end of such calendar month and (ii) beginning with the calendar month of April 2015, unaudited reports of the Liquidity of Recro and its Subsidiaries on a consolidated basis for
the corresponding calendar month in the preceding Fiscal Year, in comparative form.]1 

[Attached hereto as Annex I are an unaudited consolidated and consolidating balance sheet of Recro and its Subsidiaries
as of the end of such Fiscal Quarter, consolidated and consolidating statements of income and cash flow of Recro and its Subsidiaries for such Fiscal Quarter (including separate carve out financials for the Borrower and its Subsidiaries) and the
Revenue Base for such Fiscal Quarter and for the period commencing at the end of the previous Fiscal Year and ending with the end of such Fiscal Quarter and including in comparative form the figures for the corresponding Fiscal Quarter in, and the
year to date portion of, the immediately preceding Fiscal Year, and including (in each case) in comparative form the figures for the corresponding Fiscal Quarter in, and the year to date portion of, the immediately preceding Fiscal Year, certified
as complete and correct by the chief financial or accounting Authorized Officer of the Borrower (subject to normal year-end audit adjustments).]2 

 

	1 	INCLUDE FOR MONTHLY FINANCIAL DELIVERABLES. 


	2 	INCLUDE FOR QUARTERLY FINANCIAL DELIVERABLES. 








 [Attached hereto as Annex I are (i) a copy of the consolidated and
consolidating balance sheet of Recro and its Subsidiaries, and the related consolidated and consolidating statements of income and cash flow of Recro and its Subsidiaries for such Fiscal Year (including separate carve out financials for the Borrower
and its Subsidiaries), setting forth in comparative form the figures for the immediately preceding Fiscal Year, audited (without any Impermissible Qualification) by independent public accountants acceptable to the Lender, which shall include a
calculation of the financial covenants set forth in Section 8.4 of the Credit Agreement and stating that, in performing the examination necessary to deliver the audited financial statements of the Borrower, no knowledge was obtained of any
Event of Default, and (ii) the Revenue Base for the Fiscal Quarter then ending and such Fiscal Year and including in comparative form the figures for the corresponding Fiscal Quarter in the immediately preceding Fiscal Year and the immediately
preceding Fiscal Year.]3 
 (b) The financial statements delivered with
this Certificate in accordance with Section 7.1(a), (b) and (c) of the Credit Agreement fairly present in all material respects the financial condition of Recro and its Subsidiaries (subject to the absence of footnotes and to normal
year-end audit adjustments in the case of unaudited financial statements). 
 (c) [Attached hereto as Annex II is/are
(i) a list of the applications for the registration of any Intellectual Property Collateral (as defined in the Security Agreement) filed with the United States Patent and Trademark Office, the United States Copyright Office or any similar
office or agency in any other country or any political subdivision thereof by any Grantor (as defined in the Security Agreement) or any of its agents, employees, designees or licensees subsequent to the date of the most recent Compliance Certificate
submitted by the undersigned pursuant to Section 7.1(d) of the Credit Agreement, and (ii) executed [Patent Security Agreement], [Trademark Security Agreement], and/or [Copyright Security Agreement], in the form(s) attached to the Security
Agreement, relating to an interest in any Intellectual Property obtained by any Grantor or a Grantor filing (or any of its agents, employees, designees or licensees filing on behalf of a Grantor) an application for the registration of any
Intellectual Property Collateral subsequent to the date of the most recent Compliance Certificate submitted by the undersigned pursuant to Section 7.1(d) of the Credit Agreement and any other document reasonably required to evidence the
Lender’s interest in any part of such item of Intellectual Property in connection with the obligations of the Borrower under Sections 4.5(c) and 4.5(e) of the Security Agreement.]4 

(d) As of the Computation Date, the Loan Parties are in compliance in all respects with the financial covenants set forth in
Section 8.4 of the Credit Agreement. Set forth on Attachment 1 hereto are calculations showing compliance with such financial covenants as of the Computation Date. 

 

	3 	INCLUDE FOR ANNUAL FINANCIAL DELIVERABLES. 


	4 	INCLUDE FOR QUARTERLY FINANCIAL DELIVERABLES. ALSO REQUIRED 45 DAYS AFTER THE END OF EACH FISCAL YEAR. 








 (e) No Default has occurred and is continuing [except as set forth on
Attachment [2] hereto, which includes a description of the nature and period of existence of such Default and what action the applicable Loan Parties have taken, are taking, or propose to take with respect thereto]. 

(f) Subsequent to the date of the most recent Compliance Certificate submitted by the undersigned pursuant to
Section 7.1(d) of the Credit Agreement, none of the Loan Parties has formed or acquired any new Subsidiary [except as set forth on Attachment [2] hereto, in which case such new Subsidiary has complied with the requirements of
Section 7.8 of the Credit Agreement]. 
 (g) Subsequent to the date of the most recent Compliance Certificate submitted
by the undersigned pursuant to Section 7.1(d) of the Credit Agreement, none of the Loan Parties or any of their respective Subsidiaries has acquired any ownership interest in any real property [except as set forth on Attachment [2]
hereto, in which case the Borrower has complied with the requirements of Section 7.8 of the Credit Agreement with respect to such real property]. 

[ Signature Page Follows ] 







 IN WITNESS WHEREOF, the undersigned has caused this Certificate to be executed and delivered, and
the certification and warranties contained herein to be made, by its chief financial or accounting Authorized Officer as of the date first above written. 
  

					
	[RECRO PHARMA LLC] / [RECRO GAINESVILLE LLC]
		
	By:		  

			Name:		
			 Title:
		[CFO]


 [ Signature Page to Compliance Certificate ] 







 [Annex I] 







 [Annex II] 







 [Attachment 1] 







 [Attachment 2] 







 EXHIBIT D 

FORM OF GUARANTEE 
 This
GUARANTEE, dated as of March 7, 2015 (as amended, supplemented or otherwise modified from time to time, this “Guarantee”), is made by RECRO PHARMA, INC., a Pennsylvania corporation (“Recro” and, together with
any additional Persons named pursuant to Section 5.5, each a “Guarantor” and collectively the “Guarantors”), in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its
Affiliates, successors, transferees and assignees, the “Lender”). 

W I T N E S S E T H: 

WHEREAS, concurrently with the execution of this Guarantee, Recro Pharma LLC, a Delaware limited liability company (the
“Borrower”), and the Lender are entering into the Credit Agreement, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), pursuant to which
the Lender will extend a Commitment to make the Loan to the Borrower; 
 WHEREAS, the Guarantors (other than Recro) and the Borrower are all
direct and indirect subsidiaries of Recro (such Guarantors, Recro, and the Borrower, the “Recro Group”), and the Loan will inure to the benefit of the Recro Group, as a whole, and to the benefit of each Guarantor; 

WHEREAS, (i) in order to induce the Lender to enter into the Credit Agreement and extend the Commitment and make the Loan to the
Borrower, Recro is required to execute and deliver this Guarantee to the Lender on the date hereof, and (ii) as a condition precedent to the making of the Loan under the Credit Agreement on the Closing Date, Newco (as defined below) will be
required to execute and deliver a supplement to this Guarantee to the Lender on the Closing Date and become a Guarantor hereunder; 

WHEREAS, concurrently with the execution of this Guarantee, Recro, the Borrower, Alkermes Pharma Ireland Limited, a private limited company
incorporated in Ireland (“APIL”), Daravita Limited, a private limited company incorporated in Ireland (“Daravita”), and Eagle Holdings USA, Inc., a Delaware corporation (“Eagle Holdings”), are
entering into a Purchase and Sale Agreement dated as of the date hereof (as it may be amended from time to time, the “Acquisition Agreement”); 

WHEREAS, Alkermes Ireland Holdings Limited, a private limited company incorporated in Ireland, holds 100% of the Capital Securities of
Daravita, and Eagle Holdings holds 100% of the Capital Securities of Alkermes Gainesville LLC, a Massachusetts limited liability company (“Alkermes Gainesville,” and together with Daravita, each individually a
“Company” and collectively, the “Companies”); 
 WHEREAS, pursuant to the Acquisition Agreement, APIL will
form a new Delaware limited liability company (“Newco”) which, prior to the closing of the transactions contemplated by the Acquisition Agreement, will acquire substantially all of the assets and liabilities of Daravita through a
reorganization (the “Asset and Liability Transfer”); 







 WHEREAS, pursuant to the Acquisition Agreement, Recro has agreed to acquire, through Borrower,
100% of the Capital Securities of (i) Alkermes Gainesville and (ii) Newco (the “Acquisition”); 
 WHEREAS,
immediately following the Acquisition, Recro will cause Borrower to merge (the “Merger”) with and into Alkermes Gainesville, with Alkermes Gainesville being the surviving entity following the Merger and immediately changing its name
to Recro Gainesville LLC (the “Surviving Entity”), and all references to Borrower in this Guarantee for any period from and after consummation of the Acquisition and the Merger shall include the Surviving Entity; and 

WHEREAS, as a result of the Merger, Newco will become a wholly-owned subsidiary of the Borrower and, pursuant to the Credit Agreement, will be
required to execute and deliver a supplement to this Guarantee to the Lender on the Closing Date and become a Guarantor hereunder; 
 NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order to induce the Lender to enter into the Credit Agreement and extend the Commitment and make the Loan to the Borrower, each
Guarantor hereby agrees, for the benefit of the Lender, as follows. 
 ARTICLE I 

DEFINITIONS 
 Section 1.1
Certain Terms. The following terms (whether or not underscored) when used in this Guarantee, including its preamble and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and
plural forms thereof): 
 “Acquisition” is defined in the seventh recital. 

“Acquisition Agreement” is defined in the fourth recital. 

“Alkermes Gainesville” is defined in the fifth recital. 

“APIL” is defined in the fourth recital. 

“Asset and Liability Transfer” is defined in the sixth recital. 

“Borrower” is defined in the first recital, it being understood that (i) the Borrower shall be the Surviving
Entity from and after the Merger and (ii) for purposes of Article III hereof, all references therein to the Borrower and the Loan Parties shall include (A) the Companies and (B) Newco (assuming for such purpose that Newco was
formed and the Asset and Liability Transfer occurred immediately prior to the execution of this Guarantee). 
 “Company”
and “Companies” are defined in the fifth recital. 
 “Credit Agreement” is defined in the first
recital. 

  
 2 








 “Daravita” is defined in the fifth recital. 

“Eagle Holdings” is defined in the fourth recital. 

“Guarantor” and “Guarantors” are defined in the preamble. 

“Guarantee” is defined in the preamble. 

“Lender” is defined in the preamble. 

“Merger” is defined in the eighth recital. 

“Newco” is defined in the sixth recital. 

“Obligor” is defined in Section 2.1(a). 

“Recro” is defined in the preamble. 

“Recro Group” is defined in the second recital. 

“Surviving Entity” is defined in the eighth recital. 

Section 1.2 Credit Agreement Definitions. Unless otherwise defined herein or the context otherwise requires, terms used in
this Guarantee, including its preamble and recitals, have the meanings provided in the Credit Agreement. 
 ARTICLE II 

GUARANTEE PROVISIONS 

Section 2.1 Guarantee. Each Guarantor jointly and severally, absolutely, unconditionally and irrevocably: 

(a) guarantees the full and punctual payment when due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise, and performance of all Obligations of Recro, the Borrower and their respective Subsidiaries party to any Loan Document (each, an “Obligor”) now or hereafter existing, whether for principal,
interest (including interest accruing at the then applicable default rate as provided in Section 3.4 of the Credit Agreement, whether or not a claim for post-filing or post-petition interest is allowed under applicable law following the
institution of a proceeding under bankruptcy, insolvency or similar laws), fees, expenses or otherwise (including all such amounts which would become due but for the operation of the automatic stay under Section 362(a) of the United States
Bankruptcy Code, 11 U.S.C. §362(a), and the operation of Sections 502(b) and 506(b) of the United States Bankruptcy Code, 11 U.S.C. §502(b) and §506(b)); and 

(b) indemnifies and holds harmless the Lender for any and all costs and expenses (including the reasonable fees and
out-of-pocket expenses of counsel to the Lender) 

  
 3 








 
incurred by the Lender in enforcing any rights under this Guarantee, except to the extent such amounts arise or are incurred as a consequence of the Lender’s own gross negligence or willful
misconduct; 
 provided, that each Guarantor shall only be liable under this Guarantee for the maximum amount of such liability that can be hereby
incurred without rendering this Guarantee, as it relates to such Guarantor, voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount. This Guarantee constitutes a guarantee of payment
when due and not of collection, and each Guarantor specifically agrees that it shall not be necessary or required that the Lender exercise any right, assert any claim or demand or enforce any remedy whatsoever against such Guarantor or any other
Person before or as a condition to the obligations of such Guarantor becoming due hereunder. 
 Section 2.2 Reinstatement, Etc.
Each Guarantor agrees that this Guarantee shall continue to be effective or be reinstated (including on or after the Termination Date), as the case may be, if at any time any payment (in whole or in part) of any of the Obligations is invalidated,
declared to be fraudulent or preferential, set aside, rescinded or must otherwise be restored by the Lender, including upon the occurrence of any Event of Default set forth in Section 9.1(h) of the Credit Agreement or otherwise, all as though
such payment had not been made. 
 Section 2.3 Guarantee Absolute, Etc. This Guarantee shall in all respects be a continuing,
absolute, unconditional and irrevocable guarantee of payment, and shall remain in full force and effect until (unless reinstated pursuant to Section 2.2 above) the Termination Date has occurred. Each Guarantor guarantees that the
Obligations shall be paid strictly in accordance with the terms of each Loan Document under which they arise, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of the
Lender with respect thereto. The liability of each Guarantor under this Guarantee shall be absolute, unconditional and irrevocable irrespective of: 

(a) any lack of validity, legality or enforceability of any Loan Document; 

(b) the failure of the Lender (i) to assert any claim or demand or to enforce any right or remedy against such Guarantor
or any other Person (including any other guarantor) under the provisions of any Loan Document or otherwise, or (ii) to exercise any right or remedy against any other guarantor (including such Guarantor and any other Guarantor) of, or collateral
securing, any Obligations; 
 (c) any change in the time, manner or place of payment of, or in any other term of, all or any
part of the Obligations, or any other extension, compromise or renewal of any Obligation, or any amendment to, rescission, waiver, or other modification of, or any consent to or departure from, any of the terms of any Loan Document; 

(d) any reduction, limitation, impairment or termination of any Obligations for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to (and each Guarantor hereby waives any right to or claim of) any defense or setoff, counterclaim (other than a defense of payment or performance),


  
 4 








 
recoupment or termination whatsoever by reason of the invalidity, illegality, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Obligations or
otherwise; 
 (e) any addition, exchange or release of any collateral or of any Person that is (or will become) a guarantor
of the Obligations, or any surrender or non-perfection of any collateral, or any amendment to, or waiver or release of, or addition to, or consent to or departure from, any other guarantee held by the Lender securing any of the Obligations; or 

(f) any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any
Obligor, any surety or any guarantor (including any Guarantor). 
 Section 2.4 Setoff. Each Guarantor hereby irrevocably
authorizes the Lender, without the requirement that any notice be given to such Guarantor (such notice being expressly waived by such Guarantor), upon the occurrence and during the continuance of any Event of Default, to appropriate and apply to the
payment of the Obligations owing to it (whether or not then due), and (as security for such Obligations) each Guarantor hereby grants to the Lender a continuing security interest in, any and all balances, credits, deposits, accounts or moneys of
such Guarantor then or thereafter maintained with or on behalf of the Lender. The Lender agrees to notify such Guarantor after any such set-off and application made by the Lender; provided, that the failure to give such notice shall not
affect the validity of such setoff and application. The rights of the Lender under this Section are in addition to other rights and remedies (including other rights of setoff under applicable law or otherwise) which the Lender may have. 

Section 2.5 Waiver, Etc. Each Guarantor waives promptness, diligence, notice of acceptance and any other notice with respect to
any of the Obligations and this Guarantee and any requirement that the Lender protect, secure, perfect or insure any Lien, or any property subject thereto, or exhaust any right or take any action against any Obligor or any other Person (including
any Guarantor) or entity or any collateral securing the Obligations, as the case may be. 
 Section 2.6 Postponement of Subrogation,
Etc. Each Guarantor agrees that it will not exercise any rights which it may acquire by way of rights of subrogation under any Loan Document to which it is a party, nor shall such Guarantor seek or be entitled to seek any contribution or
reimbursement from the Borrower or any other Obligor or Guarantor, in respect of any payment made under any Loan Document or otherwise, until following the Termination Date. Any amount paid to such Guarantor on account of any such subrogation rights
prior to the Termination Date shall be held in trust for the benefit of the Lender and shall immediately be paid and turned over to the Lender in the exact form received by such Guarantor (duly endorsed in favor of the Lender, if required), to be
credited and applied against the Obligations, whether matured or unmatured, in accordance with Section 2.7; provided, that if such Guarantor has made payment to the Lender of all or any part of the Obligations and the Termination
Date has occurred, then, at such Guarantor’s request, the Lender will, at the expense of such Guarantor, execute and deliver to such Guarantor appropriate documents (without recourse and without 

  
 5 








 
representation or warranty) necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Obligations resulting from such payment. In furtherance of the foregoing, at
all times prior to the Termination Date, such Guarantor shall refrain from taking any action or commencing any proceeding against the Borrower or any other Obligor or Guarantor (or their successors or assigns, whether in connection with a bankruptcy
proceeding or otherwise) to recover any amounts in respect of payments made under this Guarantee to the Lender. 
 Section 2.7
Payments; Application. Each Guarantor agrees that all obligations of such Guarantor hereunder shall be paid solely in U.S. Dollars to the Lender in immediately available funds, without set-off, counterclaim or other defense and in accordance
with Sections 3.2, 3.3, 4.3 and 4.4 of the Credit Agreement, free and clear of and without deduction for any Non-Excluded Taxes, such Guarantor hereby agreeing to comply with and be bound by the provisions of Sections 3.2, 3.3, 4.3 and 4.4 of the
Credit Agreement in respect of all payments and application of such payments made by it hereunder and the provisions of which Sections are hereby incorporated into and made a part of this Guarantee by this reference as if set forth herein;
provided, that references to the “Borrower” in such Sections shall be deemed to be references to such Guarantor, and references to “this Agreement” in such Sections shall be deemed to be references to this Guarantee. 

ARTICLE III 
 REPRESENTATIONS AND
WARRANTIES 
 In order to induce the Lender to enter into the Credit Agreement and make the Loan thereunder, each Guarantor represents and
warrants to the Lender, as of the date hereof and as of the Closing Date, as set forth below (it being understood and agreed that (i) the representations and warranties made on the Closing Date are deemed to be made concurrently with and after
giving effect to the consummation of the Acquisition and the Merger and (ii) references to the Borrower and the Loan Parties in this Article III include (A) the Companies and (B) Newco (assuming for such purpose that Newco was
formed and the Asset and Liability Transfer occurred immediately prior to the execution of this Guarantee)). 
 Section 3.1 Credit
Agreement Representations and Warranties. The representations and warranties contained in Article VI of the Credit Agreement, insofar as the representations and warranties contained therein are applicable to such Guarantor and its properties,
are true and correct in all material respects as of the date hereof and as of the Closing Date (except for representations and warranties that refer to a specific date, which shall be true and correct in all material respects as of such date) (it
being understood and agreed that (i) the representations and warranties made on the Closing Date are deemed to be made concurrently with and after giving effect to the consummation of the Acquisition and the Merger; and (ii) references to
the Borrower and the Loan Parties in Article VI of the Credit Agreement include (A) the Companies and (B) Newco (assuming for such purpose that Newco was formed and the Asset and Liability Transfer occurred immediately prior to the
execution of this Guarantee)), each such representation and warranty set forth in such Article (insofar as applicable as aforesaid) and all other terms of the Credit Agreement to which reference is made therein, together with all related definitions
and ancillary provisions, being hereby incorporated into this Guarantee by this reference as though specifically set forth in this Article. 

  
 6 








 Section 3.2 Financial Condition, Etc. Each Guarantor has knowledge of the
Borrower’s and each other Guarantor’s financial condition and affairs and has adequate means to obtain from each such Person on an ongoing basis information relating thereto and to each such Person’s ability to pay and perform the
Obligations, and agrees to assume the responsibility for keeping, and to keep, so informed for so long as this Guarantee is in effect. Each Guarantor acknowledges and agrees that the Lender shall have no obligation to investigate the financial
condition or affairs of the Borrower or any other Guarantor for the benefit of such Guarantor nor to advise such Guarantor of any fact respecting, or any change in, the financial condition or affairs of each such Person that might become known to
the Lender at any time, whether or not the Lender knows or believes or has reason to know or believe that any such fact or change is unknown to such Guarantor, or might (or does) materially increase the risk of such Guarantor as guarantor, or might
(or would) affect the willingness of such Guarantor to continue as a guarantor of the Obligations. 
 Section 3.3 Best
Interests. It is in the best interests, and for the commercial benefit, of each Guarantor to execute this Guarantee inasmuch as each Guarantor will, as a result of being an Affiliate of the Borrower, derive substantial direct and indirect
benefits from the Loan made to the Borrower by the Lender pursuant to the Credit Agreement, and each Guarantor agrees that the Lender is relying on this representation in agreeing to make the Loan to the Borrower. 

ARTICLE IV 
 COVENANTS, ETC. 

Section 4.1 Covenants. Each Guarantor covenants and agrees that, at all times prior to the Termination Date, it will perform,
comply with and be bound by all of the agreements, covenants and obligations contained in the Credit Agreement (including Articles VII and VIII of the Credit Agreement) which are applicable to such Guarantor or its properties, each such agreement,
covenant and obligation contained in the Credit Agreement and all other terms of the Credit Agreement to which reference is made in this Article, together with all related definitions and ancillary provisions, being hereby incorporated into this
Guarantee by this reference as though specifically set forth in this Article. 
 ARTICLE V 

MISCELLANEOUS PROVISIONS 

Section 5.1 Loan Document. This Guarantee is a Loan Document executed pursuant to the Credit Agreement and shall (unless otherwise
expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including Article X thereof. 

Section 5.2 Binding on Successors, Transferees and Assigns; Assignment. This Guarantee shall remain in full force and effect
until the Termination Date has occurred, shall be binding upon each Guarantor and its successors, transferees and assigns and shall inure to the 

  
 7 








 
benefit of and be enforceable by the Lender; provided, that such Guarantor may not (unless otherwise permitted under the terms of the Credit Agreement) assign any of its obligations
hereunder without the prior written consent of the Lender. Without limiting the generality of the foregoing, the Lender may assign or otherwise transfer (in whole or in part) its Commitment, Note or Loan held by it to any other Person, and such
other Person shall thereupon become vested with all rights and benefits in respect thereof granted to the Lender under each Loan Document (including this Guarantee) or otherwise. 

Section 5.3 Amendments, Etc. No amendment to or waiver of any provision of this Guarantee, nor consent to any departure by any
Guarantor from its obligations under this Guarantee, shall in any event be effective unless the same shall be in writing and signed by the Lender and then such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given. 
 Section 5.4 Notices. All notices and other communications provided for hereunder shall be given
or made as set forth in Section 10.2 of the Credit Agreement. 
 Section 5.5 Additional Guarantors. Upon the execution
and delivery by any other Person of a supplement in the form of Annex I hereto, such Person shall become a “Guarantor” hereunder with the same force and effect as if it were originally a party to this Guarantee and named as a
“Guarantor” hereunder. The execution and delivery of such supplement shall not require the consent of any other Guarantor hereunder, and the rights and obligations of each Guarantor hereunder shall remain in full force and effect
notwithstanding the addition of any new Guarantor as a party to this Guarantee. 
 Section 5.6 No Waiver; Remedies. In
addition to, and not in limitation of, Section 2.3 and Section 2.5, no failure on the part of the Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

Section 5.7 Further Assurances. Each Guarantor agrees, upon the written request of the Lender, to execute and deliver to the
Lender, from time to time, any additional instruments or documents deemed to be reasonably necessary by the Lender to cause this Guarantee to be, become or remain valid and effective in accordance with its terms. 

Section 5.8 Section Captions. Section captions used in this Guarantee are for convenience of reference only and shall not
affect the construction of this Guarantee. 
 Section 5.9 Severability. Any provision of this Guarantee which is prohibited
or unenforceable in any jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Guarantee or affecting the validity or
enforceability of such provision in any other jurisdiction. 

  
 8 








 Section 5.10 Governing Law, Entire Agreement, Etc. THIS GUARANTEE AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTEE OR ANY OTHER LOAN DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Guarantee, along with the other Loan Documents, constitutes the entire understanding among
the parties hereto with respect to the subject matter hereof and supersedes any prior agreements, written or oral, with respect hereto. 

Section 5.11 Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS GUARANTEE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER OR ANY GUARANTOR IN CONNECTION HEREWITH SHALL BE BROUGHT AND MAINTAINED IN THE COURTS OF THE BOROUGH OF
MANHATTAN IN THE CITY OF NEW YORK IN THE STATE OF NEW YORK OR IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK; PROVIDED THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE LENDER’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE LENDER BY ACCEPTANCE OF THIS GUARANTEE AND EACH GUARANTOR IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED
MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN SECTION 10.2 OF THE CREDIT AGREEMENT. THE LENDER BY ACCEPTANCE OF THIS GUARANTEE AND EACH GUARANTOR HEREBY EXPRESSLY
AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. TO THE EXTENT THAT THE LENDER BY ACCEPTANCE OF THIS GUARANTEE OR ANY GUARANTOR HAS OR HEREAFTER MAY ACQUIRE ANY IMMUNITY FROM JURISDICTION OF ANY COURT OR FROM ANY LEGAL PROCESS (WHETHER THROUGH SERVICE OR
NOTICE, ATTACHMENT PRIOR TO JUDGMENT, ATTACHMENT IN AID OF EXECUTION OR OTHERWISE) WITH RESPECT TO ITSELF OR ITS PROPERTY, THE LENDER BY ACCEPTANCE OF THIS GUARANTEE AND SUCH GUARANTOR, EACH ON ITS OWN BEHALF, HEREBY IRREVOCABLY WAIVES TO THE
FULLEST EXTENT PERMITTED BY LAW SUCH IMMUNITY IN RESPECT OF ITS OBLIGATIONS UNDER THIS GUARANTEE. 
 Section 5.12
Counterparts. This Guarantee may be executed by the parties hereto in several counterparts, each of which shall be an original and all of which shall constitute together but one and the same agreement. This Guarantee shall become
effective when counterparts 

  
 9 








 
hereof executed on behalf of each Guarantor shall have been received by the Lender. Delivery of an executed counterpart of a signature page to this Guarantee by email (e.g. “pdf” or
“tiff”) or telecopy shall be effective as delivery of a manually executed counterpart of this Guarantee. 
 Section 5.13
Waiver of Jury Trial. THE LENDER BY ACCEPTANCE OF THIS GUARANTEE AND EACH GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF
ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS GUARANTEE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE LENDER OR ANY GUARANTOR IN CONNECTION HEREWITH. EACH
GUARANTOR ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION (AND EACH OTHER PROVISION OF EACH OTHER LOAN DOCUMENT TO WHICH IT IS A PARTY) AND THAT THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE LENDER
TO ENTER INTO THE LOAN DOCUMENTS. 
 [ Signature Page Follows ] 

  
 10 








 IN WITNESS WHEREOF, each Guarantor has caused this Guarantee to be duly executed and delivered by
its Authorized Officer as of the date first above written. 
  

			
	RECRO PHARMA, INC.
		
	By:		  

			Name:
			Title:


 [ Signature Page to Guarantee ] 







 ANNEX I 

to Guarantee 
 SUPPLEMENT TO 

GUARANTEE 
 This
SUPPLEMENT, dated as of                  ,         (this “Supplement”), is to the Guarantee, dated as of
March 7, 2015 (as amended, restated, supplemented, amended and restated or otherwise modified from time to time, the “Guarantee”), by the Guarantors (such term, and other terms used in this Supplement, to have the meanings set
forth in Article I of the Guarantee) from time to time party thereto, in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the
“Lender”). 
 W I T N E S S E T H : 

WHEREAS, pursuant to a Credit Agreement, dated as of March 7, 2015 (as amended, restated, supplemented, or otherwise modified from time
to time, the “Credit Agreement”), by and between (i) the Lender and (ii) (A) prior to consummation of the Merger, Recro Pharma LLC, a Delaware limited liability company (“Recro LLC”) and (B) from
and after consummation of the Merger, Recro Gainesville LLC, a Massachusetts limited liability company (the “Surviving Entity”, and together with Recro LLC, the “Borrower”), the Lender has extended a Commitment to
make the Loan to the Borrower; 
 WHEREAS, pursuant to the provisions of Section 5.5 of the Guarantee, each of the undersigned is
becoming a Guarantor under the Guarantee; and 
 WHEREAS, each of the undersigned desires to become a “Guarantor” under the
Guarantee in order to induce the Lender to continue to extend the Loan under the Credit Agreement; 
 NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned agrees, for the benefit of the Lender, as follows. 

SECTION 1. Party to Guarantee, Etc. In accordance with the terms of the Guarantee, by its signature below, each of the undersigned
hereby irrevocably agrees to become a Guarantor under the Guarantee with the same force and effect as if it were an original signatory thereto and each of the undersigned hereby (a) agrees to be bound by and comply with all of the terms and
provisions of the Guarantee applicable to it as a Guarantor and (b) represents and warrants that the representations and warranties made by it as a Guarantor thereunder are true and correct in all respects (in the case of any representation or
warranty qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified by materiality or Material Adverse Effect) as of the date hereof, unless stated to relate solely
to an earlier date, in which case such representations and warranties shall be true and correct in all respects (in the case of any representation or warranty qualified by materiality or 







 
Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified by materiality or Material Adverse Effect. In furtherance of the foregoing, each
reference to a “Guarantor” and/or “Guarantors” in the Guarantee shall be deemed to include each of the undersigned. 

SECTION 2. Representations. Each of the undersigned Guarantors hereby represents and warrants that this Supplement has been duly
authorized, executed and delivered by it and that this Supplement and the Guarantee constitute its legal, valid and binding obligation, enforceable against it in accordance with its terms (except, in any case, as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by principles of equity). 

SECTION 3. Full Force of Guarantee. Except as expressly supplemented hereby, the Guarantee shall remain in full force and effect in
accordance with its terms. 
 SECTION 4. Severability. Wherever possible each provision of this Supplement shall be interpreted in
such manner as to be effective and valid under applicable law, but if any provision of this Supplement shall be prohibited by or invalid under such law, such provision shall be ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this Supplement or the Guarantee. 
 SECTION 5. Governing
Law, Entire Agreement, Etc. THIS SUPPLEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY DOCUMENT CONTEMPLATED HEREBY
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK). This Supplement, along with the other Loan Documents, constitutes the entire understanding among the parties hereto with respect to the subject matter thereof and supersedes any prior agreements, written or oral, with respect thereto. 

SECTION 6. Effective. This Supplement shall become effective when a counterpart hereof executed by the Guarantor shall have been
received by the Lender. Delivery of an executed counterpart of a signature page to this Supplement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery of a manually executed counterpart of this Supplement.

 [ Signature Page Follows ] 

  
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 IN WITNESS WHEREOF, each of the parties hereto has caused this Supplement to be duly executed and
delivered by its Authorized Officer as of the date first above written. 
  

			
	[NAME OF ADDITIONAL SUBSIDIARY]
		
	By:		  

			Name:
			Title:
	
	[NAME OF ADDITIONAL SUBSIDIARY]
		
	By:		  

			Name:
			Title:


 [ Signature Page to Guarantee Supplement ] 







 EXHIBIT E 

FORM OF PLEDGE AND SECURITY AGREEMENT 

This PLEDGE AND SECURITY AGREEMENT, dated as of [—], 2015 (as amended, restated,
supplemented or otherwise modified from time to time, this “Security Agreement”), is made by RECRO PHARMA LLC, a Delaware limited liability company (“Recro LLC”) and RECRO PHARMA, INC., a Pennsylvania corporation
(“Recro” and, together with Recro LLC and any other entity that may become a party hereto as provided herein, each a “Grantor” and, collectively, the “Grantors”) in favor of ORBIMED ROYALTY
OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the “Lender”). 

W I T N E S S E T H : 

WHEREAS, pursuant to the Credit Agreement, dated as of March 7, 2015 (as the same may be amended, restated, supplemented or otherwise
modified from time to time, the “Credit Agreement”), by and between the Borrower (as defined below) and the Lender, the Lender has extended a Commitment to make the Loan to the Borrower; and 

WHEREAS, as a condition precedent to the making of the Loan under the Credit Agreement, each Grantor is required to execute and deliver this
Security Agreement; 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
each Grantor agrees, for the benefit of the Lender, as follows: 
 ARTICLE I 

DEFINITIONS 
 Section 1.1
Certain Terms. The following terms (whether or not underscored) when used in this Security Agreement, including its preamble and recitals, shall have the following meanings (such definitions to be equally applicable to the singular and plural
forms thereof): 
 “Borrower” means (i) prior to consummation of the Merger, Recro LLC and (ii) from and after
consummation of the Merger, the Surviving Entity. 
 “Collateral” is defined in Section 2.1. 

“Collateral Accounts” is defined in Section 4.3(b). 

“Computer Hardware and Software Collateral” means (a) all of the Grantors’ computer and other electronic data
processing hardware, integrated computer systems, central processing units, memory units, display terminals, printers, features, computer elements, card readers, tape drives, hard and soft disk drives, cables, electrical supply hardware, generators,
power equalizers, accessories and all peripheral devices and other related computer hardware, including all operating system software, utilities and application programs in whatsoever form; (b) all software programs (including both source code,
object code and all related applications and data 







 
files) designed for use on the computers and electronic data processing hardware described in clause (a) above; (c) all firmware associated therewith; (d) all documentation
(including flow charts, logic diagrams, manuals, guides, specifications, training materials, charts and pseudo codes) with respect to such hardware, software and firmware described in the preceding clauses (a) through (c); and
(e) all rights with respect to all of the foregoing, including copyrights, licenses, options, warranties, service contracts, program services, test rights, maintenance rights, support rights, improvement rights, renewal rights and
indemnifications and any substitutions, replacements, improvements, error corrections, updates, additions or model conversions of any of the foregoing. 

“Control Agreement” means an authenticated record in form and substance reasonably satisfactory to the Lender, that provides
for the Lender to have “control” (as defined in the UCC) over certain Collateral. 
 “Copyright Collateral” means
all copyrights of the Grantors, whether statutory or common law, whether registered or unregistered and whether published or unpublished, now or hereafter in force throughout the world including all of the Grantors’ rights, titles and interests
in and to all copyrights registered in the United States Copyright Office or anywhere else in the world, including the copyrights referred to in Item A of Schedule V, and registrations and recordings thereof and all applications for
registration thereof, whether pending or in preparation, all copyright licenses, including each copyright license referred to in Item B of Schedule V, the right to sue for past, present and future infringements of any of the
foregoing, all rights corresponding thereto, all extensions and renewals of any thereof and all Proceeds of the foregoing, including licenses, royalties, income, payments, claims, damages and Proceeds of suit, which are owned or licensed by the
Grantors. 
 “Credit Agreement” is defined in the first recital. 

“Distributions” means all dividends paid on Capital Securities, liquidating dividends paid on Capital Securities, shares (or
other designations) of Capital Securities resulting from (or in connection with the exercise of) stock splits, reclassifications, warrants, options, non-cash dividends, mergers, consolidations, and all other
distributions (whether similar or dissimilar to the foregoing) on or with respect to any Capital Securities constituting Collateral. 

“Excluded Property” means the Meloxicam Assets and Liabilities (as defined in the Credit Agreement). 

“Filing Statements” is defined in Section 3.7(b). 

“General Intangibles” means all “general intangibles” and all “payment intangibles”, each as defined in
the UCC, and shall include all interest rate or currency protection or hedging arrangements, all tax refunds, all licenses, permits, concessions and authorizations and all Intellectual Property Collateral (in each case, regardless of whether
characterized as general intangibles under the UCC). 
 “Grantor” and “Grantors” are defined in the
preamble. 

  
 2 








 “Intellectual Property Collateral” means, collectively, the Computer Hardware
and Software Collateral, the Copyright Collateral, the Patent Collateral, the Trademark Collateral, the Trade Secrets Collateral, Product Agreements and Regulatory Authorizations. 

“Intercompany Note” means any promissory note evidencing loans made by any Grantor to any other Grantor. 

“Investment Property” means, collectively, (a) all “investment property” as such term is defined in
Section 9-102(a)(49) of the UCC and (b) whether or not constituting “investment property” as so defined, all Pledged Notes. 

“Lender” is defined in the preamble. 

“Patent Collateral” means: 

(a) all of the Grantors’ (i) inventions and discoveries, whether patentable or not, and (ii) letters patent and
applications for letters patent throughout the world, including all patent applications in preparation for filing and each patent and patent application referred to in Item A of Schedule III; 

(b) all reissues, divisions, continuations,
continuations-in-part, extensions, renewals and reexaminations of any of the items described in clause (a); 

(c) all patent licenses, and other agreements providing any Grantor with the right to use any items of the type referred to in
clauses (a) and (b) above, including each patent license referred to in Item B of Schedule III; and 

(d) all Proceeds of, and rights associated with, the foregoing (including licenses, royalties income, payments, claims, damages
and Proceeds of infringement suits) and the right to sue third parties for past, present or future infringements of any patent or patent application and for breach or enforcement of any patent license. 

“Permitted Liens” means all Liens permitted by Section 8.3 of the Credit Agreement. 

“Pledged Notes” means all promissory notes listed on Item J of Schedule II (as such schedule may be amended or
supplemented from time to time), all Intercompany Notes at any time issued to any Grantor and all other promissory notes issued to or held by any Grantor. 

“Recro” is defined in the preamble. 

“Recro LLC” is defined in the preamble. 

“Securities Act” is defined in Section 6.2(a). 

“Security Agreement” is defined in the preamble. 

“Surviving Entity” means Recro Gainesville LLC, a Massachusetts limited liability company. 

  
 3 








 “Trade Secrets Collateral” means all of the Grantors’ common law and
statutory trade secrets and all other confidential, proprietary or useful information, and all know-how obtained by or used in or contemplated at any time for use in the business of any Grantor (all of the
foregoing being collectively called a “Trade Secret”), whether or not such Trade Secret has been reduced to a writing or other tangible form, including all documents and things embodying, incorporating or referring in any way to
such Trade Secret, all Trade Secret licenses, including each Trade Secret license referred to in Schedule VI, and including the right to sue for and to enjoin and to collect damages for the actual or threatened misappropriation of any Trade
Secret and for the breach or enforcement of any such Trade Secret license. 
 “Trademark Collateral” means: 

(a) (i) all of the Grantors’ trademarks, trade names, corporate names, company names, business names, fictitious business
names, trade styles, service marks, certification marks, collective marks, logos and other source or business identifiers, and all goodwill of the business associated therewith, now existing or hereafter adopted or acquired including those referred
to in Item A of Schedule IV, whether currently in use or not, all registrations and recordings thereof and all applications in connection therewith, whether pending or in preparation for filing, including registrations,
recordings and applications in the United States Patent and Trademark Office or in any office or agency of the United States of America, or any State thereof or any other country or political subdivision thereof or otherwise, and all common-law rights relating to the foregoing, and (ii) the right to obtain all reissues, extensions or renewals of the foregoing (collectively referred to as the “Trademarks”); 

(b) all Trademark licenses for the grant by or to any Grantors of any right to use any Trademark, including each Trademark
license referred to in Item B of Schedule IV; and 
 (c) all of the goodwill of the business connected with the
use of, and symbolized by the items described in, clause (a), and to the extent applicable clause (b); 
 (d)
the right to sue third parties for past, present and future infringements of any Trademark Collateral described in clause (a) and, to the extent applicable, clause (b); and 

(e) all Proceeds of, and rights associated with, the foregoing, including any claim by any Grantor against third parties for
past, present or future infringement or dilution of any Trademark, Trademark registration or Trademark license, or for any injury to the goodwill associated with the use of any such Trademark or for breach or enforcement of any Trademark license and
all rights corresponding thereto throughout the world. 
 Section 1.2 Credit Agreement Definitions. Unless otherwise defined
herein or the context otherwise requires, terms used in this Security Agreement, including its preamble and recitals, have the meanings provided in the Credit Agreement. 

  
 4 








 Section 1.3 UCC Definitions. When used herein the terms “Account”,
“Certificate of Title”, “Certificated Securities”, “Chattel Paper”, “Commercial Tort Claim”, “Commodity Account”, “Commodity Contract”, “Deposit Account”, “Document”,
“Electronic Chattel Paper”, “Equipment”, “Goods”, “Instrument”, “Inventory”, “Letter-of-Credit Rights”, “Payment Intangibles”, “Proceeds”, “Promissory Notes”,
“Securities Account”, “Security Entitlement”, “Supporting Obligations” and “Uncertificated Securities” have the meaning provided in Article 8 or Article 9, as applicable, of the UCC. “Letters of
Credit” has the meaning provided in Section 5-102 of the UCC. 
 Section 1.4 Interpretation. The provisions of
Section 1.5 of the Credit Agreement are incorporated in, and apply to, this Security Agreement as if set out in full with any necessary amendments. 

ARTICLE II 
 SECURITY INTEREST 

Section 2.1 Grant of Security Interest. Each Grantor hereby grants to the Lender a continuing security interest in all of such
Grantor’s right, title and interest in and to the following property, whether now or hereafter existing, owned or acquired by such Grantor, and wherever located (collectively, the “Collateral”): 

(a) Accounts; 

(b) Chattel Paper; 

(c) Commercial Tort Claims listed on Item I of Schedule II (as such schedule may be amended or supplemented from
time to time); 
 (d) Deposit Accounts; 

(e) Documents; 

(f) General Intangibles; 

(g) Goods (including Goods held on consignment with third parties); 

(h) Instruments; 

(i) Investment Property; 

(j) Letter-of-Credit Rights and Letters of Credit; 

(k) Supporting Obligations; 

(l) all books, records, writings, databases, information and other property relating to, used or useful in connection with,
evidencing, embodying, incorporating or referring to, any of the foregoing in this Section; 

  
 5 








 (m) all Proceeds of the foregoing and, to the extent not otherwise included,
(A) all payments under insurance (whether or not the Lender is the loss payee thereof) in respect of Collateral and (B) all tort claims; and 

(n) all other property and rights of every kind and description and interests therein. 

Notwithstanding the foregoing, the term “Collateral” shall not include: 

(i) any General Intangibles or other rights, in each case arising under any contracts, instruments, licenses or other documents
as to which the grant of a security interest would violate any such contract, instrument, license or other document or give any other party to such contract, instrument, license or other document the right to terminate its obligations thereunder;

 (ii) trademark applications filed in the United States Patent and Trademark Office on the basis of such Grantor’s
“intent to use” such trademark, unless and until acceptable evidence of use of the Trademark has been filed with the United States Patent and Trademark Office pursuant to Section 1(c) or Section 1(d) of the Lanham Act (15 U.S.C.
1051, et seq.), to the extent that granting a Lien in such Trademark application prior to such filing would adversely affect the enforceability or validity of such Trademark application; 

(iii) any asset, the granting of a security interest in which would be void or illegal under any applicable governmental law,
rule or regulation, or pursuant thereto would result in, or permit the termination of, such asset; 
 (iv) any asset subject
to a Permitted Lien (other than Liens in favor of the Lender) securing obligations permitted under the Credit Agreement to the extent that the grant of other Liens on such asset (A) would result in a breach or violation of, or constitute a
default under, the agreement or instrument governing such Permitted Lien, (B) would result in the loss of use of such asset or (C) would permit the holder of such Permitted Lien to terminate the Grantor’s use of such asset; or 

(v) the Excluded Property; 

provided, that the property described in paragraphs (i), (iii) and (iv) above shall only be excluded from the term
“Collateral” to the extent the conditions stated in such paragraphs are not rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC or any other applicable law. 

Section 2.2 Security for Obligations. This Security Agreement and the Collateral in which the Lender is granted a security
interest hereunder by the Grantors secure the payment and performance of all of the Obligations. 

  
 6 








 Section 2.3 Grantors Remain Liable. Anything herein to the contrary notwithstanding:

 (a) the Grantors will remain liable under the contracts and agreements included in the Collateral to the extent set forth
therein, and will perform all of their duties and obligations under such contracts and agreements to the same extent as if this Security Agreement had not been executed; 

(b) the exercise by the Lender of any of its rights hereunder will not release any Grantor from any of its duties or
obligations under any such contracts or agreements included in the Collateral; and 
 (c) the Lender will not have any
obligation or liability under any contracts or agreements included in the Collateral by reason of this Security Agreement, nor will the Lender be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action
to collect or enforce any claim for payment assigned hereunder. 
 Section 2.4 Distributions on Capital Securities; Payments on
Pledged Notes. In the event that any (a) Distribution with respect to any Capital Securities or (b) payment with respect to any Pledged Notes, in each case pledged hereunder, is permitted to be paid (in accordance with Section 8.6
of the Credit Agreement), such Distribution or payment may be paid directly to the applicable Grantor. If any Distribution or payment is made in contravention of Section 8.6 of the Credit Agreement, such Grantor shall hold the same segregated
and in trust for the Lender until paid to the Lender in accordance with Section 4.1.5. 
 Section 2.5 Security Interest
Absolute, Etc. This Security Agreement shall in all respects be a continuing, absolute, unconditional and irrevocable grant of security interest, and shall remain in full force and effect until the Termination Date. All rights of the Lender and
the security interests granted to the Lender hereunder, and all obligations of the Grantors hereunder, shall, to the fullest extent permitted by applicable law, in each case, be absolute, unconditional and irrevocable irrespective of: 

(a) any lack of validity, legality or enforceability of any Loan Document (other than this Security Agreement); 

(b) the failure of the Lender (i) to assert any claim or demand or to enforce any right or remedy against any of Recro,
the Borrower or any of their respective Subsidiaries or any other Person (including any other Grantor) under the provisions of any Loan Document or otherwise, or (ii) to exercise any right or remedy against any other guarantor (including any
other Grantor) of, or Collateral securing, any Obligations; 
 (c) any change in the time, manner or place of payment of, or
in any other term of, all or any part of the Obligations, or any other extension, compromise or renewal of any Obligations; 

(d) any reduction, limitation, impairment or termination of any Obligations for any reason, including any claim of waiver,
release, surrender, alteration or compromise, and shall not be subject to (and each Grantor hereby waives, until payment of all Obligations, any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever by
reason of the invalidity, illegality, nongenuineness, irregularity, compromise, unenforceability of, or any other event or occurrence affecting, any Obligations or otherwise; 

  
 7 








 (e) any amendment to, rescission, waiver, or other modification of, or any
consent to or departure from, any of the terms of any Loan Document; 
 (f) any addition, exchange or release of any
Collateral or of any Person that is (or will become) a Grantor (including the Grantors hereunder), or any surrender or non-perfection of any Collateral, or any amendment to or waiver or release or addition to, or consent to or departure from, any
other guaranty held by the Lender securing any of the Obligations; or 
 (g) any other circumstance which might otherwise
constitute a defense available to, or a legal or equitable discharge of Recro, the Borrower or any of their respective Subsidiaries, any surety or any guarantor. 

Section 2.6 Postponement of Subrogation. Each Grantor agrees that it will not exercise any rights against another Grantor which it
may acquire by way of rights of subrogation under any Loan Document to which it is a party until following the Termination Date. No Grantor shall seek or be entitled to seek any contribution or reimbursement from Recro, the Borrower or any of their
respective Subsidiaries, in respect of any payment made under any Loan Document or otherwise, until following the Termination Date. Any amount paid to any Grantor on account of any such subrogation rights prior to the Termination Date shall be held
in trust for the benefit of the Lender and shall immediately be paid and turned over to the Lender in the exact form received by such Grantor (duly endorsed in favor of the Lender, if required), to be credited and applied against the Obligations,
whether matured or unmatured, in accordance with Section 6.1(b); provided that if such Grantor has made payment to the Lender of all or any part of the Obligations and the Termination Date has occurred, then at such Grantor’s
request, the Lender will, at the expense of such Grantor, execute and deliver to such Grantor appropriate documents (without recourse and without representation or warranty) necessary to evidence the transfer by subrogation to such Grantor of an
interest in the Obligations resulting from such payment. In furtherance of the foregoing, at all times prior to the Termination Date, such Grantor shall refrain from taking any action or commencing any proceeding against Recro, the Borrower or any
of their respective Subsidiaries (or their successors or assigns, whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts in respect of payments made under this Security Agreement to the Lender. 

  
 8 








 ARTICLE III 

REPRESENTATIONS AND WARRANTIES 

In order to induce the Lender to enter into the Credit Agreement and make the Loan thereunder, the Grantors represent and warrant to the
Lender as set forth below. 
 Section 3.1 As to Capital Securities of the Subsidiaries, Investment Property. 

(a) With respect to any Subsidiary of any Grantor that is 

(i) a corporation, business trust, joint stock company or similar Person, all Capital Securities issued by such Subsidiary
(including the Borrower) are duly authorized and validly issued, fully paid and non-assessable, and represented by a certificate or certificates; and 

(ii) a partnership or limited liability company, no Capital Securities issued by such Subsidiary (A) are dealt in or
traded on securities exchanges or in securities markets, (B) expressly provides that such Capital Securities is a security governed by Article 8 of the UCC or (C) is held in a Securities Account, except, with respect to this clause
(a)(ii), Capital Securities (x) for which the Lender is the registered owner or (y) with respect to which the issuer has agreed in an authenticated record with such Grantor and the Lender to comply with any instructions of the Lender
without the consent of such Grantor. 
 (b) Each Grantor has delivered all Certificated Securities constituting Collateral
held by such Grantor in a Subsidiary (including the Borrower) on the Closing Date (or the date such Grantor becomes a party to this Security Agreement, as applicable) to the Lender, together with duly executed undated blank stock powers, or other
equivalent instruments of transfer acceptable to the Lender. 
 (c) With respect to Uncertificated Securities constituting
Collateral owned by any Grantor in a Subsidiary (including the Borrower) on the Closing Date (or the date such Grantor becomes a party to this Security Agreement, as applicable), such Grantor has caused the issuer thereof either to (i) register
the Lender as the registered owner of such security or (ii) agree in an authenticated record with such Grantor and the Lender that such issuer will comply with instructions with respect to such security originated by the Lender without further
consent of such Grantor. 
 (d) The percentage of the issued and outstanding Capital Securities of each Subsidiary (including
the Borrower) pledged on the Closing Date by each Grantor hereunder is as set forth on Schedule I. All shares of such Capital Securities have been duly and validly issued and are fully paid and nonassessable. 

(e) Each of the Intercompany Notes constitutes the legal, valid and binding obligation of the obligor with respect thereto,
enforceable in accordance with its terms, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable
principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 

Section 3.2 Grantor Name, Location, Etc. In each case as of the date hereof: 

(a) (i) The jurisdiction in which each Grantor is located for purposes of Sections
9-301 and 9-307 of the UCC and (ii) the address of each Grantor’s executive office and principal place of business is set forth in Item A of Schedule
II. 
 (b) The Grantors do not have any trade names other than those set forth in Item C of Schedule II
hereto. 

  
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 (c) Except as set forth in Item D of Schedule II, hereto during the
twelve months preceding the date hereof (or preceding the date such Grantor becomes a party to this Security Agreement, as applicable) no Grantor has been known by any legal name different from the one set forth on the signature page hereto, nor has
such Grantor been the subject of any merger or other corporate reorganization. 
 (d) Each Grantor’s federal taxpayer
identification number (or foreign equivalent) is (and, during the twelve months preceding the date hereof, such Grantor has not had a federal taxpayer identification number (or equivalent) different from that) set forth in Item E of
Schedule II hereto. 
 (e) No Grantor is a party to any federal, state or local government contract except as set
forth in Item F of Schedule II hereto. 
 (f) No Grantor maintains any Deposit Accounts, Securities Accounts or
Commodity Accounts with any Person, in each case, except as set forth on Item G of Schedule II. 
 (g) No
Grantor is the beneficiary of any Letters of Credit, except as set forth on Item H of Schedule II. 
 (h) No
Grantor has Commercial Tort Claims except as set forth on Item I of Schedule II. 
 (i) The name set forth on
the signature page attached hereto is the true and correct legal name (as defined in the UCC) of each Grantor. 
 Section 3.3
Ownership, No Liens, Etc. Each Grantor owns its Collateral free and clear of any Lien, except for any security interest (a) created by this Security Agreement and (b) Permitted Liens. No effective UCC financing statement or other
filing similar in effect covering all or any part of the Collateral is on file in any recording office, except those filed in favor of the Lender relating to this Security Agreement, Permitted Liens or as to which a duly authorized termination
statement relating to such UCC financing statement or other instrument has been delivered to the Lender on the Closing Date. 

Section 3.4 Possession of Inventory, Control, Etc. 

(a) Each Grantor has, and agrees that it will maintain, exclusive possession of its Documents, Instruments, Promissory Notes,
Goods, Equipment and Inventory, other than (i) Equipment and Inventory that is in transit in the ordinary course of business, (ii) Equipment and Inventory that in the ordinary course of business is in the possession or control of a
warehouseman, bailee agent or other Person (other than a Person controlled by or under common control with such Grantor) that has been notified of the security interest created in favor of the Lender pursuant to this Security Agreement and has
authenticated a record acknowledging that it holds possession of such Collateral for the Lender’s benefit and waives any Lien held by it against such Collateral, (iii) Inventory that is in the possession of a consignee in the ordinary
course of business and (iv) Instruments or Promissory Notes that have been delivered to the Lender pursuant to 

  
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Section 3.5, and (v) Equipment and Inventory at any single location which does not meet the requirements of subsections (i), (ii), (iii) or (iv) above, but the value of
such Equipment and Inventory is not in an aggregate amount of more than $100,000 at any one location or $200,000 in the aggregate. In the case of Equipment or Inventory described in clause (ii) above, no lessor or warehouseman of any premises
or warehouse upon or in which such Equipment or Inventory is located has (w) issued any warehouse receipt or other receipt in the nature of a warehouse receipt in respect of any such Equipment or Inventory, (x) issued any Document for any
such Equipment or Inventory, (y) received notification of the Lender’s interest (other than the security interest granted hereunder) in any such Equipment or Inventory or (z) any Lien on any such Equipment or Inventory. Each Grantor
shall furnish to the Lender landlord access agreements, in form and substance satisfactory to the Lender, from each landlord to such Grantor for each real property lease entered into by such Grantor after the date hereof. 

(b) Each Grantor is the sole entitlement holder of its Deposit Accounts and no other Person (other than the Lender pursuant to
this Security Agreement or any other Person with respect to Permitted Liens) has control or possession of, or any other interest in, any of its Deposit Accounts or any other securities or property credited thereto. 

Section 3.5 Negotiable Documents, Instruments and Chattel Paper. Each Grantor has delivered to the Lender possession of all
originals of all Documents, Instruments, Promissory Notes, and tangible Chattel Paper (other than any Document, Instrument, Promissory Note or tangible Chattel Paper not exceeding $5,000 in principal amount) owned or held by such Grantor on the
Closing Date. 
 Section 3.6 Intellectual Property Collateral. Except as disclosed on Schedules III through VI,
with respect to any Intellectual Property Collateral: 
 (a) any Intellectual Property Collateral owned by any Grantor is
valid, subsisting, unexpired and enforceable and has not been abandoned by the Grantor or adjudged invalid or unenforceable, in whole or in part; 

(b) such Grantor is the sole and exclusive owner of the entire and unencumbered right, title and interest in and to all
Intellectual Property Collateral owned by such Grantor and to the knowledge of such Grantor, no claim has been made that the use of such Intellectual Property Collateral by such Grantor does or may, conflict with, infringe, misappropriate, dilute,
misuse or otherwise violate in any material respect, any of the rights of any third party; 
 (c) such Grantor has made (and
in the case of Grantors other than Recro, or shall make within 30 days after the Closing Date,) all necessary filings and recordations to protect its interest in any Intellectual Property Collateral owned by such Grantor to the extent such filing or
recordation is necessary for the conduct of the business substantially in the manner presently conducted, including recordations of all of its interests in the Patent Collateral and Trademark Collateral in the United States Patent and Trademark
Office (or foreign equivalent), and its claims to the Copyright Collateral in the United States Copyright Office (or foreign equivalent), and, to the extent necessary, has used proper statutory notice in connection with its use of any material
Patent, Trademark and Copyright in any of the Intellectual Property Collateral; 

  
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 (d) such Grantor has taken all reasonable steps to safeguard its Trade Secrets
and to its knowledge (A) none of the Trade Secrets of such Grantor has been used, divulged, disclosed or appropriated for the benefit of any other Person other than such Grantor; (B) no employee, independent contractor or agent of such
Grantor has misappropriated any Trade Secrets of any other Person in the course of the performance of his or her duties as an employee, independent contractor or agent of such Grantor; and (C) no employee, independent contractor or agent of
such Grantor is in default or breach of any material term of any employment agreement, non-disclosure agreement, assignment of inventions agreement or similar agreement or contract relating in any material way to the protection, ownership,
development, use or transfer of such Grantor’s Intellectual Property Collateral; 
 (e) to such Grantor’s
knowledge, no third party is infringing upon any Intellectual Property owned or used by such Grantor in any material respect, or any of its respective licensees in any material respect; 

(f) except as set forth on Schedule 3.6(f), no settlement or consents, covenants not to sue, nonassertion assurances, or
releases have been entered into by such Grantor or to which such Grantor is bound that adversely affects its rights to own or use any Intellectual Property; 

(g) such Grantor has not made a previous assignment, sale, transfer or agreement constituting a present or future assignment,
sale or transfer of any Intellectual Property for purposes of granting a security interest or as Collateral that has not been terminated or released except Permitted Liens; 

(h) such Grantor has executed and delivered to the Lender Intellectual Property Collateral security agreements for all
Copyrights, Patents and Trademarks owned by such Grantor, including all Copyrights, Patents and Trademarks on Schedule III through VI (as such schedules may be amended or supplemented from time to time by notice by such Grantor to the
Lender); 
 (i) such Grantor uses commercially reasonable standards of quality in the manufacture, distribution, and sale of
all products sold and in the provision of all services rendered under or in connection with all Trademarks and has taken all commercially reasonable action necessary to insure that all licensees of the Trademarks owned by such Grantor use such
adequate standards of quality; 
 (j) the consummation of the transactions contemplated by the Credit Agreement and this
Security Agreement will not result in the termination or material impairment of any of the Intellectual Property Collateral; and 

(k) to such Grantor’s knowledge, such Grantor owns or is entitled to use by license, lease or other agreement, all
Patents, Trademarks, Trade Secrets, Copyrights, mask works, licenses, technology, know-how, processes and rights with respect to any of the foregoing as necessary to conduct the business and operations of such
Grantor substantially in the manner presently conducted. 

  
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 Section 3.7 Validity, Etc. 

(a) This Security Agreement creates a valid security interest in the Collateral securing the payment of the Obligations to the
extent such security interest may be created pursuant to Article 9 of the UCC. 
 (b) As of the Closing Date, each Grantor
has filed or caused to be filed all UCC-1 financing statements in the filing office for each Grantor’s jurisdiction of organization listed in Item A of Schedule II (collectively, the “Filing Statements”) (or has
delivered to the Lender the Filing Statements suitable for timely and proper filing in such offices) and has taken all other actions necessary to obtain control of the Collateral as provided in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC. 

(c) Upon the filing of the Filing Statements with the appropriate agencies therefor the security interests created under this
Security Agreement shall constitute a perfected security interest in the Collateral described on such Filing Statements in favor of the Lender to the extent that a security interest therein may be perfected by filing a financing statement pursuant
to the relevant UCC, prior to all other Liens, except for Permitted Liens (in which case such security interest shall be second in priority of right only to the Permitted Liens until the obligations secured by such Permitted Liens have been
satisfied). 
 Section 3.8 Authorization, Approval, Etc. Except as have been obtained or made and are in full force and effect,
no authorization, approval or other action by, and no notice to or filing with, any Governmental Authority or any other third party is required either 

(a) for the grant by the Grantors of the security interest granted hereby or for the execution, delivery and performance of
this Security Agreement by the Grantors; 
 (b) for the perfection or maintenance of the security interests hereunder
including the first priority nature of such security interest (except with respect to the Filing Statements or, with respect to Intellectual Property Collateral, the recordation of any agreements with the United States Patent and Trademark Office or
the United States Copyright Office or, with respect to foreign Intellectual Property Collateral, the taking of appropriate action under applicable foreign law and, with respect to after-acquired Intellectual Property Collateral, any subsequent
filings in United States intellectual property offices) or the exercise by the Lender of its rights and remedies hereunder; or 

(c) for the exercise by the Lender of the voting or other rights provided for in this Security Agreement, except (i) with
respect to any securities issued by a Subsidiary of the Grantors, as may be required in connection with a disposition of such securities by laws affecting the offering and sale of securities generally, the remedies in respect of the Collateral
pursuant to this Security Agreement and (ii) any “change of control” or similar filings required by state licensing agencies. 

  
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 Section 3.9 Best Interests. It is in the best interests, and for the commercial
benefit, of each Grantor (other than the Borrower) to execute this Security Agreement inasmuch as such Grantor will, as a result of being an Affiliate of the Borrower, derive substantial direct and indirect benefits from the Loan made to the
Borrower by the Lender pursuant to the Credit Agreement, and each Grantor agrees that the Lender is relying on this representation in agreeing to make such Loan pursuant to the Credit Agreement to the Borrower. 

ARTICLE IV 
 COVENANTS 

Each Grantor covenants and agrees that, until the Termination Date, such Grantor will perform, comply with and be bound by the obligations set
forth below. 
 Section 4.1 As to Investment Property, Etc. 

Section 4.1.1 Capital Securities of Subsidiaries. No Grantor will allow any of its Subsidiaries (including the Borrower): 

(a) that is a corporation, business trust, joint stock company or similar Person, to issue Uncertificated Securities; 

(b) that is a partnership or limited liability company, to (i) issue Capital Securities that are to be dealt in or traded
on securities exchanges or in securities markets, (ii) expressly provide in its Organic Documents that its Capital Securities are securities governed by Article 8 of the UCC, or (iii) place such Subsidiary’s Capital Securities in a
Securities Account; and 
 (c) to issue Capital Securities in addition to or in substitution for the Capital Securities
pledged hereunder, except to such Grantor (and such Capital Securities are immediately pledged and delivered to the Lender pursuant to the terms of this Security Agreement). 

Section 4.1.2 Investment Property (other than Certificated Securities). 

(a) With respect to any Deposit Accounts, Securities Accounts, Commodity Accounts, Commodity Contracts or Security Entitlements
constituting Investment Property owned or held by any Grantor, such Grantor will cause (except for Excluded Accounts) the intermediary maintaining such Investment Property to execute a Control Agreement relating to such Investment Property pursuant
to which such intermediary agrees to comply with the Lender’s instructions with respect to such Investment Property without further consent by such Grantor. 

(b) With respect to any Uncertificated Securities (other than Uncertificated Securities credited to a Securities Account)
constituting Investment Property owned or held by any Grantor, such Grantor will cause the issuer of such securities to either (i) register the Lender as the registered owner thereof on the books and records of the issuer


  
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or (ii) execute a Control Agreement relating to such Investment Property pursuant to which the issuer agrees to comply with the Lender’s instructions with respect to such Uncertificated
Securities without further consent by such Grantor. Each party hereto that is such an issuer of any Uncertificated Securities hereby agrees that such party will comply with instructions with respect to such Uncertificated Securities originated by
the Lender. 
 Section 4.1.3 Certificated Securities (Stock Powers). Each Grantor agrees that all Certificated Securities
constituting Collateral, including the Capital Securities delivered by such Grantor pursuant to this Security Agreement, will be accompanied by duly executed undated blank stock powers, or other equivalent instruments of transfer reasonably
acceptable to the Lender. 
 Section 4.1.4 Continuous Pledge. Each Grantor will (subject to the terms of the Credit Agreement)
(a) deliver to the Lender all Investment Property and all Payment Intangibles to the extent that such Investment Property or Payment Intangibles are evidenced by a Document, Instrument, Promissory Note or Chattel Paper (other than any Document,
Instrument, Promissory Note or Chattel Paper not exceeding $5,000 in the principal amount), and (b) at all times keep pledged to the Lender pursuant hereto, on a first-priority, perfected basis, security
interest therein and in all interest and principal with respect to such Payment Intangibles, and all Proceeds and rights from time to time received by or distributable to such Grantor in respect of any of the foregoing Collateral. Each Grantor
agrees that it will, promptly following receipt thereof, deliver to the Lender possession of all originals of negotiable Documents, Instruments, Promissory Notes and Chattel Paper that it acquires following the Closing Date (other than any Document,
Instrument, Promissory Note or Chattel Paper not exceeding $5,000 in the principal amount). 
 Section 4.1.5 Voting Rights,
Dividends, Etc. Each Grantor agrees: 
 (a) upon receipt of notice of the occurrence and continuance of an Event of
Default from the Lender and without any request therefor by the Lender, so long as such Event of Default shall continue, to deliver (properly endorsed where required hereby or requested by the Lender) to the Lender all dividends and Distributions
with respect to Investment Property, all interest, principal, other cash payments on Payment Intangibles, and all Proceeds of the Collateral, in each case thereafter received by such Grantor, all of which shall be held by the Lender as additional
Collateral, except for payments made in accordance with Section 8.6 of the Credit Agreement; and 
 (b) immediately upon
the occurrence and during the continuance of an Event of Default and so long as the Lender has notified such Grantor of the Lender’s intention to exercise its voting power under this clause, 

(i) with respect to Collateral consisting of general partner interests or limited liability company interests, to promptly
modify its Organic Documents to admit the Lender as a general partner or member, as applicable; 
 (ii) that the Lender may
exercise (to the exclusion of such Grantor) the voting power and all other incidental rights of ownership with respect to any 

  
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Investment Property constituting Collateral and such Grantor hereby grants the Lender an irrevocable proxy, exercisable under such circumstances, to vote such Investment Property; and 

(iii) to promptly deliver to the Lender such additional proxies and other documents as may be necessary to allow the Lender to
exercise such voting power. 
 All dividends, Distributions, interest, principal, cash payments, Payment Intangibles and Proceeds that may at any time and
from time to time be held by such Grantor, but which such Grantor is then obligated to deliver to the Lender, shall, until delivery to the Lender, be held by such Grantor separate and apart from its other property in trust for the Lender. The Lender
agrees that unless an Event of Default shall have occurred and be continuing and the Lender shall have given the notice referred to in clause (b), such Grantor will have the exclusive voting power with respect to any Investment Property
constituting Collateral and the Lender will, upon the written request of such Grantor, promptly deliver such proxies and other documents, if any, as shall be reasonably requested by such Grantor which are necessary to allow such Grantor to exercise
that voting power; provided that no vote shall be cast, or consent, waiver, or ratification given, or action taken by such Grantor that would impair any such Collateral or be inconsistent with or violate any provision of any Loan Document.

 Section 4.2 Change of Name, Etc. No Grantor will change its name or place of incorporation or organization or federal
taxpayer identification number except as otherwise permitted by the Credit Agreement. 
 Section 4.3 As to Accounts. 

(a) Each Grantor shall have the right to collect all Accounts so long as no Event of Default shall have occurred and be
continuing. 
 (b) Upon (i) the occurrence and continuance of an Event of Default and (ii) the delivery of notice
by the Lender to each Grantor, all Proceeds of Collateral received by such Grantor shall be delivered in kind to the Lender for deposit in a Deposit Account of such Grantor maintained with the Lender (together with any other Deposit Accounts or
Security Accounts pursuant to which any portion of the Collateral is deposited with the Lender, the “Collateral Accounts”), and such Grantor shall not commingle any such Proceeds, and shall hold separate and apart from all other
property, all such Proceeds in express trust for the benefit of the Lender until delivery thereof is made to the Lender. 

(c) Following the delivery of notice pursuant to clause (b)(ii), the Lender shall have the right to apply any amount in
the Collateral Account to the payment of any Obligations which are then due and payable. 
 (d) With respect to each of the
Collateral Accounts, it is hereby confirmed and agreed that (i) deposits in such Collateral Account are subject to a security interest as contemplated hereby, (ii) such Collateral Account shall be under the control of the Lender and
(iii) the Lender shall have the sole right of withdrawal over such Collateral Account. 

  
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 Section 4.4 As to Grantors’ Use of Collateral. 

(a) Subject to clause (b), each Grantor (i) may in the ordinary course of its business, at its own expense, sell, lease
or furnish under contracts of service any of the Inventory normally held by such Grantor for such purpose, and use and consume, in the ordinary course of its business, any raw materials, work in process or materials normally held by such Grantor for
such purpose, (ii) will, at its own expense, endeavor to collect, as and when due, all amounts due with respect to any of the Collateral, including the taking of such action with respect to such collection as the Lender may reasonably request
following the occurrence and during the continuation of an Event of Default or, in the absence of such request, as such Grantor may deem advisable, and (iii) may grant, in the ordinary course of business, to any party obligated on any of the
Collateral, any rebate, refund or allowance to which such party may be lawfully entitled, and may accept, in connection therewith, the return of Goods, the sale or lease of which shall have given rise to such Collateral. 

(b) At any time following the occurrence and during the continuance of an Event of Default, whether before or after the
maturity of any of the Obligations, the Lender may (i) revoke any or all of the rights of each Grantor set forth in clause (a), (ii) notify any parties obligated on any of the Collateral to make payment to the Lender of any amounts
due or to become due thereunder and (iii) enforce collection of any of the Collateral by suit or otherwise and surrender, release, or exchange all or any part thereof, or compromise or extend or renew for any period (whether or not longer than
the original period) any indebtedness thereunder or evidenced thereby. 
 (c) Upon the request of the Lender following the
occurrence and during the continuance of an Event of Default, each Grantor will, at its own expense, notify any parties obligated on any of the Collateral to make payment to the Lender of any amounts due or to become due thereunder. 

(d) At any time following the occurrence and during the continuation of an Event of Default, the Lender may endorse, in the
name of such Grantor, any item, howsoever received by the Lender, representing any payment on or other Proceeds of any of the Collateral. 

Section 4.5 As to Intellectual Property Collateral. Each Grantor covenants and agrees to comply with the following provisions as
such provisions relate to any Intellectual Property Collateral material to the operations or business of such Grantor: 
 (a)
such Grantor will not (i) do or fail to perform any act whereby any of the Patent Collateral may lapse or become abandoned or dedicated to the public or unenforceable, (ii) permit any of its licensees to (A) fail to continue to use
any of the Trademark Collateral in order to maintain all of the Trademark Collateral in full force free from any claim of abandonment for non-use, (B) fail to maintain the quality of products and services
offered under all of the Trademark Collateral at a level substantially consistent with the quality of products and services offered under such Trademark as of the date hereof, (C) fail to employ all of the Trademark Collateral


  
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registered with any federal or state or foreign authority with an appropriate notice of such registration, (D) adopt or use any other Trademark which is confusingly similar or a colorable
imitation of any of the Trademark Collateral, (E) use any of the Trademark Collateral registered with any federal, state or foreign authority except for the uses for which registration or application for registration of all of the Trademark
Collateral has been made or (F) do or permit any act or knowingly omit to do any act whereby any of the Trademark Collateral may become invalid or unenforceable, or (iii) do or permit any act or knowingly omit to do any act whereby any of
the Copyright Collateral or any of the Trade Secrets Collateral may lapse or become invalid or unenforceable or placed in the public domain except upon expiration of the end of an unrenewable term of a registration thereof, unless, in the case of
any of the foregoing requirements in clauses (i), (ii) and (iii), such Grantor reasonably and in good faith determines that either (x) such Intellectual Property Collateral is of negligible economic value to such
Grantor or (y) the loss of such Intellectual Property Collateral would not be material to such Grantor; 
 (b) such
Grantor shall promptly notify the Lender if it knows, or has reason to know, that any application or registration relating to any material item of the Intellectual Property Collateral may, in the Grantor’s reasonable commercial judgment, become
abandoned or dedicated to the public or placed in the public domain or invalid or unenforceable, or of any adverse determination or development (including the institution of, or any such determination or development in, any proceeding in the United
States Patent and Trademark Office, the United States Copyright Office or any foreign counterpart thereof or any court) regarding such Grantor’s ownership of any of the Intellectual Property Collateral, its right to register the same or to keep
and maintain and enforce the same; 
 (c) at the times and with such frequency set forth in Section 4.5(e) below, each
Grantor shall notify the Lender of the filing of an application for the registration of any Intellectual Property Collateral with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in
any other country or any political subdivision thereof, by such Grantor and, upon request of the Lender (subject to the terms of the Credit Agreement), execute and deliver all agreements, instruments and documents as the Lender may reasonably
request to evidence the Lender’s security interest in such Intellectual Property Collateral; 
 (d) such Grantor will
take all reasonable and necessary steps, including in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof
(subject to the terms of the Credit Agreement), to maintain and pursue any material application (and to obtain the relevant registration) filed with respect to, and to maintain any registration of, material Intellectual Property Collateral,
including the filing of applications for renewal, affidavits of use, affidavits of incontestability and opposition, interference and cancellation proceedings and the payment of fees and taxes (except to the extent that dedication, abandonment or
invalidation is permitted under the foregoing clause (a) or (b) or such Grantor reasonably and in good faith determines that the failure to take any such step would not have a material adverse effect on the interests of the
Lender in such Intellectual Property Collateral); and 

  
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 (e) such Grantor will within 45 days after the end of each Fiscal Quarter execute
and deliver to the Lender (as applicable) a Patent Security Agreement, Trademark Security Agreement and/or Copyright Security Agreement, as the case may be, in the forms of Exhibit A, Exhibit B and Exhibit C hereto following its
obtaining an interest in any such Intellectual Property, and shall execute and deliver to the Lender any other document reasonably required to evidence the Lender’s interest in any part of such item of Intellectual Property Collateral unless
such Grantor shall determine in good faith (with the consent of the Lender) that any Intellectual Property Collateral is of negligible economic value to such Grantor. 

Section 4.6 As to Letter-of-Credit Rights. 

(a) Each Grantor, by granting a security interest in its Letter-of-Credit Rights to the Lender, intends to (and hereby does)
collaterally assign to the Lender its rights (including its contingent rights ) to the Proceeds of all Letter-of-Credit Rights of which it is or hereafter becomes a beneficiary or assignee. 

(b) Upon the occurrence of an Event of Default, such Grantor will, promptly upon request by the Lender, (i) notify (and
such Grantor hereby authorizes the Lender to notify) the issuer and each nominated person with respect to each of the Letters of Credit that the Proceeds thereof have been assigned to the Lender hereunder and any payments due or to become due in
respect thereof are to be made directly to the Lender and (ii) arrange for the Lender to become the transferee beneficiary of such Letter of Credit. 

Section 4.7 As to Commercial Tort Claims. Each Grantor covenants and agrees that, until the payment in full of the Obligations and
termination of all Commitments, with respect to any Commercial Tort Claim hereafter arising, it shall deliver to the Lender a supplement in form and substance reasonably satisfactory to the Lender, together with all supplements to schedules thereto,
identifying such new Commercial Tort Claim. 
 Section 4.8 Electronic Chattel Paper and Transferable Records. If any Grantor at
any time holds or acquires an interest in any electronic chattel paper or any “transferable record,” as that term is defined in Section 201 of the U.S. Federal Electronic Signatures in Global and National Commerce Act, or in
Section 16 of the U.S. Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, with a value in excess of $100,000, such Grantor shall promptly notify the Lender thereof and, at the request of the Lender, shall take such
action as the Lender may reasonably request to vest in the Lender control under Section 9-105 of the UCC of such electronic chattel paper or control under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act
or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record. The Lender agrees with such Grantor that the Lender will arrange, pursuant to procedures
satisfactory to the Lender and so long as such procedures will not result in the Lender’s loss of control, for the Grantor to make alterations to the electronic chattel paper or transferable record permitted under Section 9-105 of the UCC
or, as the case may be, Section 201 of the U.S. Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the U.S. Uniform Electronic Transactions Act for a party in control to allow without loss of control, unless
an Event of Default has occurred and is continuing or would occur after taking into account any action by such Grantor with respect to such electronic chattel paper or transferable record. 

  
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 Section 4.9 Further Assurances, Etc. Each Grantor agrees that, from time to time at
its own expense, it will, subject to the terms of this Security Agreement, promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or that the Lender may reasonably request, in order to
perfect, preserve and protect any security interest granted or purported to be granted hereby or to enable the Lender to exercise and enforce its rights and remedies hereunder with respect to any Collateral. Without limiting the generality of the
foregoing, such Grantor will 
 (a) from time to time upon the request of the Lender, promptly deliver to the Lender such
stock powers, instruments and similar documents, reasonably satisfactory in form and substance to the Lender, with respect to such Collateral as the Lender may request and will, from time to time upon the request of the Lender, after the occurrence
and during the continuance of any Event of Default, promptly transfer any securities constituting Collateral into the name of any nominee designated by the Lender; if any Collateral shall be evidenced by an Instrument, negotiable Document,
Promissory Note or tangible Chattel Paper, deliver and pledge to the Lender hereunder such Instrument, negotiable Document, Promissory Note or tangible Chattel Paper (other than any Instrument, negotiable Document, Promissory Note or tangible
Chattel Paper in principal amount less than $5,000) duly endorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance reasonably satisfactory to the Lender; 

(b) file (and hereby authorize the Lender to file) such Filing Statements or continuation statements, or amendments thereto,
and such other instruments or notices (including any assignment of claim form under or pursuant to the federal assignment of claims statute, 31 U.S.C. § 3726, any successor or amended version thereof or any regulation promulgated under or
pursuant to any version thereof), as may be necessary or that the Lender may reasonably request in order to perfect and preserve the security interests and other rights granted or purported to be granted to the Lender hereby; 

(c) at all times keep pledged to the Lender pursuant hereto, on a first-priority,
perfected basis, at the request of the Lender, all Investment Property constituting Collateral, all dividends and Distributions with respect thereto, and all interest and principal with respect to Promissory Notes, and all Proceeds and rights from
time to time received by or distributable to such Grantor in respect of any of the foregoing Collateral; 
 (d) not take or
omit to take any action the taking or the omission of which would result in any impairment or alteration of any obligation of the maker of any Payment Intangible or other Instrument constituting Collateral, except as provided in
Section 4.4; 
 (e) not create any tangible Chattel Paper without placing a legend on such tangible Chattel Paper
reasonably acceptable to the Lender indicating that the Lender has a security interest in such Chattel Paper (provided that so long as no Event of Default is continuing, Chattel Paper and records relating to such Collateral for amounts in each case
less than $5,000, need only be marked upon Lender’s request); 

  
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 (f) furnish to the Lender, from time to time at the Lender’s request,
statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as the Lender may request, all in reasonable detail (provided however, for so long as no Event of Default is
continuing, Lender may not require such additional statements and schedules more than once per fiscal quarter); and 
 (g) do
all things reasonably requested by the Lender in accordance with this Security Agreement (including dollar thresholds herein) in order to enable the Lender to have and maintain control over the Collateral consisting of Investment Property, Deposit
Accounts, Letter-of-Credit-Rights and Electronic Chattel Paper. 
 With respect to the foregoing and the grant of the security interest
hereunder, each Grantor hereby authorizes the Lender to file one or more financing or continuation statements, and amendments thereto, relative to all or any part of the Collateral. Each Grantor agrees that a carbon, photographic or other
reproduction of this Security Agreement or any UCC financing statement covering the Collateral or any part thereof shall be sufficient as a UCC financing statement where permitted by law. Each Grantor hereby authorizes the Lender to file financing
statements describing as the collateral covered thereby “all of the debtor’s personal property or assets” or words to that effect, notwithstanding that such wording may be broader in scope than the Collateral described in this
Security Agreement. 
 ARTICLE V 

THE LENDER 
 Section 5.1
Lender Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Lender as its
attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time in the Lender’s
discretion, following the occurrence and during the continuance of an Event of Default, to take any action and to execute any instrument which the Lender may deem necessary or advisable to accomplish the purposes of this Security Agreement,
including: 
 (a) to ask, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys
due and to become due under or in respect of any of the Collateral; 
 (b) to receive, endorse, and collect any drafts or
other Instruments, Documents and Chattel Paper, in connection with clause (a) above; 
 (c) to file any claims or
take any action or institute any proceedings which the Lender may deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of the Lender with respect to any of the Collateral; and 

(d) to perform the affirmative obligations of such Grantor hereunder. 

  
 21 








 Each Grantor hereby acknowledges, consents and agrees that the power of attorney granted pursuant to this Section
is irrevocable and coupled with an interest. 
 Section 5.2 Lender May Perform. If any Grantor fails to perform any agreement
contained herein, the Lender may itself perform, or cause performance of, such agreement, that the Lender deems necessary for the maintenance, preservation or protection of any of the Collateral or of its security interest therein to the extent
provided for herein, and the expenses of the Lender incurred in connection therewith shall be payable by such Grantor pursuant to Section 10.3 of the Credit Agreement. 

Section 5.3 Lender Has No Duty. The powers conferred on the Lender hereunder are solely to protect its interest in the Collateral
and shall not impose any duty on it to exercise any such powers. Except for reasonable care of any Collateral in its possession and the accounting for moneys actually received by it hereunder, the Lender shall have no duty as to any Collateral or
responsibility for: 
 (a) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders
or other matters relative to any Investment Property, whether or not the Lender has or is deemed to have knowledge of such matters; or 

(b) taking any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. 

Section 5.4 Reasonable Care. The Lender is required to exercise reasonable care in the custody and preservation of any of the
Collateral in its possession; provided that the Lender shall be deemed to have exercised reasonable care in the custody and preservation of any of the Collateral, if it takes such action for that purpose as each Grantor reasonably requests in
writing at times other than upon the occurrence and during the continuance of any Event of Default, but failure of the Lender to comply with any such request at any time shall not in itself be deemed a failure to exercise reasonable care. 

ARTICLE VI 
 REMEDIES 

Section 6.1 Certain Remedies. If any Event of Default shall have occurred and be continuing: 

(a) The Lender may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of the Lender on default under the UCC (whether or not the UCC applies to the affected Collateral) and also may 

(i) take possession of any Collateral not already in its possession without demand and without legal process; 

  
 22 








 (ii) require each Grantor to, and each Grantor hereby agrees that it will, at its
expense and upon request of the Lender forthwith, assemble all or part of the Collateral as directed by the Lender and make it available to the Lender at a place to be designated by the Lender that is reasonably convenient to both parties, 

(iii) enter onto the property where any Collateral is located and take possession thereof without demand and without legal
process; and 
 (iv) without notice except as specified below, lease, license, sell or otherwise dispose of the Collateral or
any part thereof in one or more parcels at any public or private sale, at any of the Lender’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Lender may deem commercially reasonable. Each
Grantor agrees that, to the extent notice of sale shall be required by law, at least ten (10) days’ prior notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. The Lender shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Lender may adjourn any public or private sale from time to time by announcement at the time and
place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 

(b) All cash Proceeds received by the Lender in respect of any sale of, collection from, or other realization upon, all or any
part of the Collateral shall be applied by the Lender against all or any part of the Obligations as set forth in Section 4.4(b) of the Credit Agreement. 

(c) The Lender may: 

(i) transfer all or any part of the Collateral into the name of the Lender or its nominee, with or without disclosing that such
Collateral is subject to the Lien hereunder; 
 (ii) notify the parties obligated on any of the Collateral to make payment to
the Lender of any amount due or to become due thereunder; 
 (iii) withdraw, or cause or direct the withdrawal, of all funds
with respect to the Collateral Account; 
 (iv) enforce collection of any of the Collateral by suit or otherwise, and
surrender, release or exchange all or any part thereof, or compromise or extend or renew for any period (whether or not longer than the original period) any obligations of any nature of any party with respect thereto; 

(v) endorse any checks, drafts, or other writings in any Grantor’s name to allow collection of the Collateral; 

(vi) take control of any Proceeds of the Collateral; and 

(vii) execute (in the name, place and stead of any Grantor) endorsements, assignments, stock powers and other instruments of
conveyance or transfer with respect to all or any of the Collateral. 

  
 23 








 Section 6.2 Securities Laws. If the Lender shall determine to exercise its right to
sell all or any of the Collateral that are Capital Securities pursuant to Section 6.1(a)(iv), each Grantor agrees that, upon request of the Lender, such Grantor will, at its own expense: 

(a) execute and deliver, and cause (or, with respect to any issuer which is not a Subsidiary of such Grantor, use its best
efforts to cause) each issuer of the Collateral contemplated to be sold and the directors and officers thereof to execute and deliver, all such instruments and documents, and do or cause to be done all such other acts and things, as may be necessary
or, in the opinion of the Lender, advisable to register such Collateral under the provisions of the Securities Act of 1933, as from time to time amended (the “Securities Act”), and cause the registration statement relating thereto
to become effective and to remain effective for such period as prospectuses are required by law to be furnished, and to make all amendments and supplements thereto and to the related prospectus which, in the opinion of the Lender, are necessary or
advisable, all in conformity with the requirements of the Securities Act and the rules and regulations of the SEC applicable thereto; 

(b) use its best efforts to exempt the Collateral under the state securities or “Blue Sky” laws and to obtain all
necessary governmental approvals for the sale of the Collateral, as requested by the Lender; 
 (c) cause (or, with respect
to any issuer that is not a Subsidiary of such Grantor, use its best efforts to cause) each such issuer to make available to its security holders, as soon as practicable, an earnings statement that will satisfy the provisions of Section 11(a)
of the Securities Act; and 
 (d) do or cause to be done all such other acts and things as may be necessary to make such sale
of the Collateral or any part thereof valid and binding and in compliance with applicable law. 
 Each Grantor acknowledges the impossibility of
ascertaining the amount of damages that would be suffered by the Lender by reason of the failure by such Grantor to perform any of the covenants contained in this Section and consequently agrees, to the fullest extent permitted by applicable law,
that, if such Grantor shall fail to perform any of such covenants, it shall pay, as liquidated damages and not as a penalty, an amount equal to the value (as determined by the Lender) of such Collateral on the date the Lender shall demand compliance
with this Section. 
 Section 6.3 Compliance with Restrictions. Each Grantor agrees that in any sale of any of the Collateral
whenever an Event of Default shall have occurred and be continuing, the Lender is hereby authorized to comply with any limitation or restriction in connection with such sale as it may be advised by counsel is necessary in order to avoid any
violation of applicable law (including compliance with such procedures as may restrict the number of prospective bidders and purchasers, require that such prospective bidders and purchasers have certain qualifications, and restrict such prospective
bidders and purchasers to Persons who will represent and agree that 

  
 24 








 
they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral), or in order to obtain any required approval of the sale or of the
purchaser by any Governmental Authority or official, and such Grantor further agrees that such compliance shall not result in such sale being considered or deemed not to have been made in a commercially reasonable manner, nor shall the Lender be
liable nor accountable to such Grantor for any discount allowed by the reason of the fact that such Collateral is sold in compliance with any such limitation or restriction. 

Section 6.4 Protection of Collateral. The Lender may from time to time, at its option, perform any act which any Grantor fails to
perform after being requested in writing so to perform (it being understood that no such request need be given after the occurrence and during the continuance of an Event of Default) and the Lender may from time to time take any other action which
the Lender deems necessary for the maintenance, preservation or protection of any of the Collateral or of its security interest therein. 

ARTICLE VII 
 MISCELLANEOUS
PROVISIONS 
 Section 7.1 Loan Document. This Security Agreement is a Loan Document executed pursuant to the Credit Agreement
and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including Article X thereof. 

Section 7.2 Binding on Successors, Transferees and Assigns; Assignment. This Security Agreement shall remain in full force and
effect until the Termination Date has occurred, shall be binding upon the Grantors and their successors, transferees and assigns and shall inure to the benefit of and be enforceable by the Lender; provided that no Grantor may assign any of
its obligations hereunder without the prior consent of the Lender. 
 Section 7.3 Amendments, Etc. No amendment or modification
to or waiver of any provision of this Security Agreement, nor consent to any departure by any Grantor from its obligations under this Security Agreement, shall in any event be effective unless the same shall be in writing and signed by the Lender
and the Grantors and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

Section 7.4 Notices. All notices and other communications provided for hereunder shall be delivered or made as provided in
Section 10.2 of the Credit Agreement. 
 Section 7.5 Release of Liens. Upon (a) the Disposition of Collateral in
accordance with the Credit Agreement or (b) the occurrence of the Termination Date, the security interests granted herein shall automatically terminate with respect to (i) such Collateral (in the case of clause (a)) or (ii) all
Collateral (in the case of clause (b)). Upon any such Disposition or termination, the Lender will, at the Grantors’ sole expense, deliver to the Grantors, without any representations, warranties or recourse of any kind whatsoever, all
Collateral held by the Lender hereunder, and execute and deliver to the Grantors such documents as the Grantors shall reasonably request to evidence such termination. 

  
 25 








 Section 7.6 Additional Grantors. Upon the execution and delivery by any other Person
of a supplement in the form of Annex I hereto, such Person shall become a “Grantor” hereunder with the same force and effect as if it were originally a party to this Security Agreement and named as a “Grantor”
hereunder. The execution and delivery of such supplement shall not require the consent of any other Grantor hereunder, and the rights and obligations of each Grantor hereunder shall remain in full force and effect notwithstanding the addition of any
new Grantor as a party to this Security Agreement. 
 Section 7.7 No Waiver, Remedies. In addition to, and not in limitation of
Section 2.4, no failure on the part of the Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right hereunder preclude any other or
further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

Section 7.8 Severability. Any provision of this Security Agreement which is prohibited or unenforceable in any jurisdiction shall,
as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Security Agreement or affecting the validity or enforceability of such provision
in any other jurisdiction. 
 Section 7.9 Governing Law, Entire Agreement, Etc. THIS SECURITY AGREEMENT AND ANY CLAIMS,
CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Security Agreement, along with the other Loan Documents, constitutes the entire
understanding among the parties hereto with respect to the subject matter thereof and supersedes any prior agreements, written or oral, with respect thereto 

Section 7.10 Counterparts. This Security Agreement may be executed by the parties hereto in several counterparts, each of which
shall be an original and all of which shall constitute together but one and the same agreement. This Security Agreement shall become effective when counterparts hereof executed on behalf of all of the signatories hereto, shall have been received by
the Lender. Delivery of an executed counterpart of a signature page to this Security Agreement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery of a manually executed counterpart of this Security
Agreement. 
 [Signature Page Follows] 

  
 26 








 IN WITNESS WHEREOF, each of the parties hereto has caused this Security Agreement to be duly
executed and delivered by its Authorized Officer as of the date first above written. 
  

			
	Recro Pharma LLC,
	as Grantor
		
	By:		  

			Name:
			Title:
	
	 Recro Gainesville LLC,
 as
Grantor

		
	By:		  

			Name:
			Title:
	
	 Recro Pharma, Inc.,
 as
Grantor

		
	By:		  

			Name:
			Title:
	
	 OrbiMed Royalty Opportunities II, LP,

as the Lender

	
	 By OrbiMed Advisors LLC,
 its
investment manager

		
	By:		  

			Name:
			Title:


 Signature Page to Security Agreement 







 Schedule 3.6(f) Settlement Agreements 

[***] 
  

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 







 SCHEDULE I 

to Security Agreement 
  

			
	 Name of Grantor:
	  	 Interest:

		  	
		  	
		  	


  

					
		 	29	 	Pledge and Security Agreement









 SCHEDULE II 

to Security Agreement 
  

	Item A.	Location of each Grantor. 

  

			
	 Name of Grantor:
	  	 Location for purposes of UCC:

		  	

  

	Item B.	Filing locations last five years. 

  

	Item C.	Trade names. 

  

			
	 Name of Grantor:
	  	 Trade Names:

		  	

  

	Item D.	Merger or other corporate reorganization. 

  

	Item E.	Grantor’s federal taxpayer ID numbers. 

  

			
	 Name of Grantor:
	  	 Taxpayer ID numbers:

		  	

  

	Item F.	Government Contracts. 

  

	Item G.	Deposit Accounts, Securities Accounts and Commodities Accounts. 

  

			
	 Name of Grantor:
	  	 Description of Deposit Accounts, Securities Accounts and Commodities Accounts:

		  	

  

	Item H.	Letter of Credit Rights. 

  

	Item I.	Commercial Tort Claims. 









	Item J.	Pledged Notes. 

  

			
	 Name of Grantor:
	  	 Description of Pledged Notes:

		  	








 SCHEDULE III 

to Security Agreement 
  

	Item A.	Patents 

  

	Item B.	Patent Licenses 








 SCHEDULE IV 

to Security Agreement 
  

	Item A.	Trademarks 

  

	Item B.	Trademark Licenses 








 SCHEDULE V 

to Security Agreement 
  

	Item A.	Copyrights/Mask Works 

  

	Item B.	Copyright/Mask Work Licenses 








 SCHEDULE VI 

to Security Agreement 
 Trade
Secret or Know-How Licenses 







 EXHIBIT A 

to Security Agreement 
 PATENT
SECURITY AGREEMENT 
 This PATENT SECURITY AGREEMENT, dated as of
                 , 20    (this “Agreement”), is made by [NAME OF GRANTOR], a
                                         (the
“Grantor”), in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the “Lender”). 

W I T N E S S E T H : 

WHEREAS, pursuant to a Credit Agreement, dated as of March 7, 2015 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and between (i) the Lender and (ii) (A) prior to consummation of the Merger, Recro Pharma LLC, a Delaware limited liability company (“Recro LLC”) and (B) from
and after consummation of the Merger, Recro Gainesville LLC, a Massachusetts limited liability company (the “Surviving Entity”, and together with Recro LLC, the “Borrower”), the Lender has extended a Commitment to
make the Loan to the Borrower; 
 WHEREAS, in connection with the Credit Agreement, the Grantor and its Affiliates have executed and
delivered a Pledge and Security Agreement in favor of the Lender, dated as of [—], 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Security
Agreement”); 
 WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of the Security
Agreement, the Grantor is required to execute and deliver this Agreement and to grant to the Lender a continuing security interest in all of the Patent Collateral (as defined below) to secure all of the Obligations; and 

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this Agreement; 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the
benefit of the Lender, as follows: 
 Section 1 Definitions. Unless otherwise defined herein or the context otherwise requires,
terms used in this Agreement, including its preamble and recitals, have the meanings provided (or incorporated by reference) in the Security Agreement. 

Section 2 Grant of Security Interest. The Grantor hereby grants to the Lender, for its benefit, a continuing security interest in
all of the Grantor’s right, title and interest in and to the following property, whether now or hereafter existing or acquired by the Grantor (the “Patent Collateral”): 

(a) all of its letters patent and applications for letters patent throughout the world, including each patent and patent
application referred to in Item A of Schedule I attached hereto; 







 (b) all reissues, divisions, continuations, continuations-in-part, extensions, renewals and reexaminations of any of the items described in clause (a); 

(c) all patent licenses and other agreements providing the Grantor with the right to use any items of the type referred to in
clauses (a) and (b) above, including each patent license referred to in Item B of Schedule I attached hereto; and 

(d) all Proceeds of, and rights associated with, the foregoing (including licenses, royalties income, payments, claims, damages
and Proceeds of infringement suits) and the right to sue third parties for past, present or future infringements of any patent or patent application and for breach or enforcement of any patent license. 

Section 3 Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering the
security interest of the Lender in the Patent Collateral with the United States Patent and Trademark Office. The security interest granted hereby has been granted in furtherance of, and not in limitation of, the security interest granted to the
Lender for its benefit under the Security Agreement. The Security Agreement (and all rights and remedies of the Lender thereunder) shall remain in full force and effect in accordance with its terms. 

Section 4 Release of Liens. Upon (i) the Disposition of Patent Collateral in accordance with the Credit Agreement or
(ii) the occurrence of the Termination Date, the security interests granted herein shall automatically terminate with respect to (A) such Patent Collateral (in the case of clause (i)) or (B) all Patent Collateral (in the case
of clause (ii)). Upon any such Disposition or termination, the Lender will, at the Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or recourse of any kind whatsoever, all Patent Collateral held by
the Lender hereunder, and execute and deliver to the Grantor such documents as the Grantor shall reasonably request to evidence such termination. 

Section 5 Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Lender with
respect to the security interest in the Patent Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as if
fully set forth herein. 
 Section 6 Loan Document. This Agreement is a Loan Document executed pursuant to the Credit Agreement
and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including Article X thereof. 

Section 7 Effective. This Agreement shall become effective when a counterpart hereof executed by the Grantor, shall have been
received by the Lender. Delivery of an executed counterpart of a signature page to this Agreement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

 [Signature Page Follows] 

  
 2 








 IN WITNESS WHEREOF, the Grantor hereto has caused this Agreement to be duly executed and
delivered by its Authorized Officer as of the date first above written. 
  

					
	[NAME OF GRANTOR]
		
	By:		  

			Name:		
			Title:		


 Signature Page to Patent Security Agreement 







 SCHEDULE I 

to Patent Security Agreement 
  

	Item A.	Patents 

 Issued Patents 

 

									
	 Country
	  	 Patent No.
	  	 Issue Date
	  	 Inventor(s)
	  	 Title

		  		  		  		  	
		  		  		  		  	

 Pending Patent Applications 
  

									
	 Country
	  	 Serial No.
	  	 Filing Date
	  	 Inventor(s)
	  	 Title

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

 Patent Applications in Preparation 

 

									
	 Country
	  	 Docket No.
	  	 Expected

Filing Date
	  	 Inventor(s)
	  	 Title

		  		  		  		  	
		  		  		  		  	
		  		  		  		  	
		  		  		  		  	

  

	Item B.	Patent Licenses 

  

											
	 Country or

Territory
	  	 Licensor
	  	 Licensee
	  	 Effective

Date
	  	 Expiration

Date
	  	 Subject

Matter

		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	
		  		  		  		  		  	








 EXHIBIT B 

to Security Agreement 
 TRADEMARK
SECURITY AGREEMENT 
 This TRADEMARK SECURITY AGREEMENT, dated as of
                 , 20     (this “Agreement”), is made by [NAME OF GRANTOR], a
            (the “Grantor”), in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and
assignees, the “Lender”). 
 W I T N E S S E T H :

 WHEREAS, pursuant to a Credit Agreement, dated as of March 7, 2015 (as amended, restated, supplemented or otherwise modified from
time to time, the “Credit Agreement”), by and between (i) the Lender and (ii) (A) prior to consummation of the Merger, Recro Pharma LLC, a Delaware limited liability company (“Recro LLC”) and
(B) from and after consummation of the Merger, Recro Gainesville LLC, a Massachusetts limited liability company (the “Surviving Entity”, and together with Recro LLC, the “Borrower”), the Lender has extended a
Commitment to make the Loan to the Borrower; 
 WHEREAS, in connection with the Credit Agreement, the Grantor and its Affiliates have
executed and delivered a Pledge and Security Agreement in favor of the Lender, dated as of [—], 2015 (as amended, restated, supplemented, or otherwise modified from time to time, the
“Security Agreement”); 
 WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of
the Security Agreement, the Grantor is required to execute and deliver this Agreement and to grant to the Lender a continuing security interest in all of the Trademark Collateral (as defined below) to secure all of the Obligations; and 

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this Agreement; 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the
benefit of each Lender, as follows: 
 Section 1 Definitions. Unless otherwise defined herein or the context otherwise requires,
terms used in this Agreement, including its preamble and recitals, have the meanings provided (or incorporated by reference) in the Security Agreement. 

Section 2 Grant of Security Interest. The Grantor hereby grants to the Lender, for its benefit, a continuing security interest in
all of Grantor’s right, title and interest in and to the following property, whether now or hereafter existing or acquired by the Grantor (the “Trademark Collateral”): 

(a) (i) all of its trademarks, trade names, corporate names, company names, business names, fictitious business names,
trade styles, service marks, certification 







 
marks, collective marks, logos and other source or business identifiers, and all goodwill of the business associated therewith, including those referred to in Item A of Schedule I
hereto, whether currently in use or not, all registrations and recordings thereof and all applications in connection therewith, whether pending or filed, including registrations, recordings and applications in the United States Patent and Trademark
Office or in any office or agency of the United States of America or any State thereof, and all common-law rights relating to the foregoing, and (ii) the right to obtain all reissues, extensions or
renewals of the foregoing (collectively referred to as the “Trademarks”); 
 (b) all Trademark licenses for
the grant by or to the Grantor of any right to use any Trademark, including each Trademark license referred to in Item B of Schedule I hereto; 

(c) all of the goodwill of the business connected with the use of, and symbolized by the items described in, clause (a), and to
the extent applicable clause (b); 
 (d) the right to sue third parties for past, present and future infringements of any
Trademark Collateral described in clause (a) and, to the extent applicable, clause (b); and 
 (e) all Proceeds of, and
rights associated with, the foregoing, including any claim by the Grantor against third parties for past, present or future infringement or dilution of any Trademark, Trademark registration or Trademark license, or for any injury to the goodwill
associated with the use of any such Trademark or for breach or enforcement of any Trademark license and all rights corresponding thereto throughout the world. 

Section 3 Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering the
security interest of the Lender in the Trademark Collateral with the United States Patent and Trademark Office. The security interest granted hereby has been granted in furtherance of, and not in limitation of, the security interest granted to the
Lender for its benefit under the Security Agreement. The Security Agreement (and all rights and remedies of the Lender thereunder) shall remain in full force and effect in accordance with its terms. 

Section 4 Release of Liens. Upon (i) the Disposition of Trademark Collateral in accordance with the Credit Agreement or
(ii) the occurrence of the Termination Date, the security interests granted herein shall automatically terminate with respect to (A) such Trademark Collateral (in the case of clause (i)) or (B) all Trademark Collateral (in the
case of clause (ii)). Upon any such Disposition or termination, the Lender will, at the Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or recourse of any kind whatsoever, all Trademark Collateral
held by the Lender hereunder, and execute and deliver to the Grantor such documents as the Grantor shall reasonably request to evidence such termination. 

Section 5 Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Lender with
respect to the security interest in the Trademark Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as
if fully set forth herein. 

  
 2 








 Section 6 Loan Document. This Agreement is a Loan Document executed pursuant to the
Credit Agreement and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including Article X thereof. 

Section 7 Effective. This Agreement shall become effective when a counterpart hereof executed by the Grantor, shall have been
received by the Lender. Delivery of an executed counterpart of a signature page to this Agreement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery of a manually executed counterpart of this Agreement.

 [Signature Page Follows] 

  
 3 








 IN WITNESS WHEREOF, the Grantor hereto has caused this Agreement to be duly executed and
delivered by Authorized Officer as of the date first above written. 
  

					
	[NAME OF GRANTOR]
		
	By:		  

			Name:		
			Title:		


 Signature Page to Trademark Security Agreement 







 SCHEDULE I 

to Trademark Security Agreement 
  

	Item A.	Trademarks 

 Registered Trademarks 

 

							
	 Country
	 	 Trademark
	 	 Registration No.
	 	 Registration Date

		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	

 Pending Trademark Applications 

 

							
	 Country
	 	 Trademark
	 	 Serial No.
	 	 Filing Date

		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	
		 		 		 	

 Trademark Applications in Preparation 

 

									
	 Country
	 	 Trademark
	 	 Docket No.
	 	 Expected
Filing Date
	 	 Products/
Services

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  

	Item B.	Trademark Licenses 

  

											
	 Country or
Territory
	 	 Trademark
	 	 Licensor
	 	 Licensee
	 	 Effective
Date
	 	 Expiration
Date

		 		 		 		 		 	
		 		 		 		 		 	
		 		 		 		 		 	








 EXHIBIT C 

to Security Agreement 
 COPYRIGHT
SECURITY AGREEMENT 
 This COPYRIGHT SECURITY AGREEMENT, dated as of
                 , 20     (this “Agreement”), is made by [NAME OF GRANTOR], a
                                          (the
“Grantor”), in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the “Lender”). 

W I T N E S S E T H : 

WHEREAS, pursuant to a Credit Agreement, dated as of March 7, 2015 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and between (i) the Lender and (ii) (A) prior to consummation of the Merger, Recro Pharma LLC, a Delaware limited liability company (“Recro LLC”) and (B) from
and after consummation of the Merger, Recro Gainesville LLC, a Massachusetts limited liability company (the “Surviving Entity”, and together with Recro LLC, the “Borrower”), the Lender has extended a Commitment to
make the Loan to the Borrower; 
 WHEREAS, in connection with the Credit Agreement, the Grantor and its Affiliates have executed and
delivered a Pledge and Security Agreement in favor of the Lender, dated as of [—], 2015 (as amended, restated, supplemented, or otherwise modified from time to time, the “Security
Agreement”); 
 WHEREAS, pursuant to the Credit Agreement and pursuant to clause (e) of Section 4.5 of the Security
Agreement, the Grantor is required to execute and deliver this Agreement and to grant to the Lender a continuing security interest in all of the Copyright Collateral (as defined below) to secure all of the Obligations; and 

WHEREAS, the Grantor has duly authorized the execution, delivery and performance of this Agreement; 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantor agrees, for the
benefit of the Lender, as follows: 
 Section 1 Definitions. Unless otherwise defined herein or the context otherwise requires,
terms used in this Agreement, including its preamble and recitals, have the meanings provided (or incorporated by reference) in the Security Agreement. 

Section 2 Grant of Security Interest. The Grantor hereby grants to the Lender, for its benefit, a continuing security interest in
all of the Grantor’s right, title and interest in and to the following (the “Copyright Collateral”), whether now or hereafter existing or acquired by the Grantor: all copyrights of the Grantor, whether statutory or common law,
whether registered or unregistered and whether published or unpublished, now or hereafter in force throughout the world including all of the Grantor’s right, title and interest in and to all copyrights registered in the United States Copyright
Office or anywhere else in the world including the copyrights 







 
referred to in Item A of Schedule I hereto, and registrations and recordings thereof and all applications for registration thereof, whether pending or in preparation, all copyright
licenses, including each copyright license referred to in Item B of Schedule I hereto, the right to sue for past, present and future infringements of any of the foregoing, all rights corresponding thereto, all extensions and renewals
of any thereof and all Proceeds of the foregoing, including licenses, royalties, income, payments, claims, damages and Proceeds of suit. 

Section 3 Security Agreement. This Agreement has been executed and delivered by the Grantor for the purpose of registering the
security interest of the Lender in the Copyright Collateral with the United States Copyright Office. The security interest granted hereby has been granted in furtherance of, and not in limitation of, the security interest granted to the Lender for
its benefit under the Security Agreement. The Security Agreement (and all rights and remedies of the Lender thereunder) shall remain in full force and effect in accordance with its terms. 

Section 4 Release of Liens. Upon (i) the Disposition of Copyright Collateral in accordance with the Credit Agreement or
(ii) the occurrence of the Termination Date, the security interests granted herein shall automatically terminate with respect to (A) such Copyright Collateral (in the case of clause (i)) or (B) all Copyright Collateral (in the
case of clause (ii)). Upon any such Disposition or termination, the Lender will, at the Grantor’s sole expense, deliver to the Grantor, without any representations, warranties or recourse of any kind whatsoever, all Copyright Collateral
held by the Lender hereunder, and execute and deliver to the Grantor such documents as the Grantor shall reasonably request to evidence such termination. 

Section 5 Acknowledgment. The Grantor does hereby further acknowledge and affirm that the rights and remedies of the Lender with
respect to the security interest in the Copyright Collateral granted hereby are more fully set forth in the Security Agreement, the terms and provisions of which (including the remedies provided for therein) are incorporated by reference herein as
if fully set forth herein. 
 Section 6 Loan Document. This Agreement is a Loan Document executed pursuant to the Credit
Agreement and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including Article X thereof. 

Section 7 Effective. This Agreement shall become effective when a counterpart hereof executed by the Grantor, shall have been
received by the Lender. Delivery of an executed counterpart of a signature page to this Agreement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery or a manually executed counterpart of this Agreement.

 [Signature Page Follows] 

  
 2 








 IN WITNESS WHEREOF, the Grantor hereto has caused this Agreement to be duly executed and
delivered by its Authorized Officer as of the date first above written. 
  

					
	[NAME OF GRANTOR]
		
	By:		  

			Name:		
			Title:		


 Signature Page to Copyright Security Agreement 







 SCHEDULE I 

to Copyright Security Agreement 
  

	Item A.	Copyrights/Mask Works 

 Registered Copyrights/Mask Works 

 

									
	 Country
	 	Registration No.	 	Registration Date	 	Author(s)	 	Title
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

 Copyright/Mask Work Pending Registration Applications 

 

									
	 Country
	 	 Serial No.
	 	 Filing Date
	 	 Author(s)
	 	 Title

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

 Copyright/Mask Work Registration Applications in Preparation 

 

									
	 Country
	 	 Docket No.
	 	 Expected
Filing Date
	 	 Author(s)
	 	 Title

		 		 		 		 	
		 		 		 		 	
		 		 		 		 	

  

	Item B.	Copyright/Mask Work Licenses 

  

									
	 Country or
Territory
	 	Licensor	 	Licensee	 	Effective
Date	 	Expiration
Date
		 		 		 		 	
		 		 		 		 	
		 		 		 		 	








 ANNEX I 

to Security Agreement 
 SUPPLEMENT
TO 
 PLEDGE AND SECURITY AGREEMENT 

This SUPPLEMENT, dated as of
                         , 20     (this “Supplement”), is to the Pledge and Security
Agreement, dated as of [—], 2015 (as amended, restated, supplemented, amended and restated or otherwise modified from time to time, the “Security Agreement”), among the Grantors
(such term, and other terms used in this Supplement, to have the meanings set forth in Article I of the Security Agreement) from time to time party thereto, in favor of ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together
with its Affiliates, successors, transferees and assignees, the “Lender”). 
 W I T N E
S S E T H : 
 WHEREAS, pursuant to a Credit Agreement, dated as of March 7, 2015 (as amended,
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), by and between (i) the Lender and (ii) (A) prior to consummation of the Merger, Recro Pharma LLC, a Delaware limited liability
company (“Recro LLC”) and (B) from and after consummation of the Merger, Recro Gainesville LLC, a Massachusetts limited liability company (the “Surviving Entity”, and together with Recro LLC, the
“Borrower”), the Lender has extended a Commitment to make the Loan to the Borrower; 
 WHEREAS, pursuant to the provisions
of Section 7.6 of the Security Agreement, each of the undersigned is becoming a Grantor under the Security Agreement; and 
 WHEREAS,
each of the undersigned desires to become a “Grantor” under the Security Agreement in order to induce the Lender to continue to extend the Loan under the Credit Agreement; 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, each of the undersigned
agrees, for the benefit of the Lender, as follows. 
 Section 1 Party to Security Agreement, Etc. In accordance with the terms
of the Security Agreement, by its signature below, each of the undersigned hereby irrevocably agrees to become a Grantor under the Security Agreement with the same force and effect as if it were an original signatory thereto and each of the
undersigned hereby (a) agrees to be bound by and comply with all of the terms and provisions of the Security Agreement applicable to it as a Grantor and (b) represents and warrants that the representations and warranties made by it as a
Grantor thereunder are true and correct in all material respects as of the date hereof, unless stated to relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of
such earlier date. In furtherance of the foregoing, each reference to a “Grantor” and/or “Grantors” in the Security Agreement shall be deemed to include each of the undersigned. 







 Section 2 Schedules. Each of the undersigned Grantors hereby authorizes the Lender to
add the information set forth on the Schedules to this Supplement to the correlative Schedules attached to the Security Agreement. 

Section 3 Representations. Each of the undersigned Grantors hereby represents and warrants that this Supplement has been duly
authorized, executed and delivered by it and that this Supplement and the Security Agreement constitute its legal, valid and binding obligation, enforceable against it in accordance with its terms, subject to the effects of bankruptcy, insolvency,
fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good
faith and fair dealing. 
 Section 4 Full Force of Security Agreement. Except as expressly supplemented hereby, the Security
Agreement shall remain in full force and effect in accordance with its terms. 
 Section 5 Severability. Wherever possible each
provision of this Supplement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Supplement shall be prohibited by or invalid under such law, such provision shall be ineffective to the
extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Supplement or the Security Agreement. 

Section 6 Governing Law, Entire Agreement, Etc. THIS SUPPLEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER
IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR
SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Supplement, along with the other Loan Documents, constitutes the entire understanding among the parties
hereto with respect to the subject matter thereof and supersedes any prior agreements, written or oral, with respect thereto. 

Section 7 Effective. This Supplement shall become effective when a counterpart hereof executed by the Grantor shall have been
received by the Lender. Delivery of an executed counterpart of a signature page to this Supplement by email (e.g. “pdf” or “tiff”) or telecopy shall be effective as delivery of a manually executed counterpart of this Supplement.

 [Signature Page Follows] 

  
 2 








 IN WITNESS WHEREOF, each of the parties hereto has caused this Supplement to be duly executed and
delivered by its Authorized Officer as of the date first above written. 
  

			
	[NAME OF ADDITIONAL SUBSIDIARY]
		
	By:		  

			Name:
			Title:
	
	[NAME OF ADDITIONAL SUBSIDIARY]
		
	By:		  

			Name:
			Title:


 Signature Page to Security Agreement Supplement 







 [COPY SCHEDULES FROM SECURITY AGREEMENT] 







 EXHIBIT F 

FORM OF ASSUMPTION AGREEMENT 

This ASSUMPTION AGREEMENT (this “Agreement”) is entered into as of
[            ], 2015 by RECRO GAINESVILLE LLC, a Massachusetts limited liability company (the “Surviving Entity”), and relates to the Credit Agreement, dated as of
March 7, 2015 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among RECRO PHARMA LLC, a Delaware limited liability company (the “Original Borrower”), and
ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates, successors, transferees and assignees, the “Lender”). Except where the context otherwise requires, any capitalized term used but not
defined herein shall have the meaning given to such term in the Credit Agreement (as defined below). 
 W I T N
E S S E T H: 
 WHEREAS, Recro Pharma, Inc., a Pennsylvania corporation
(“Recro”), the Original Borrower, Alkermes Pharma Ireland Limited, a private limited company incorporated in Ireland (“APIL”), Daravita Limited, a private limited company incorporated in Ireland
(“Daravita”), and Eagle Holdings USA, Inc., a Delaware corporation (“Eagle Holdings”), have entered into a Purchase and Sale Agreement dated as of March 7, 2015 (as it may be amended from time to time, the
“Acquisition Agreement”); 
 WHEREAS, prior to the Acquisition (as defined below), Alkermes Ireland Holdings Limited, a
private limited company incorporated in Ireland, held 100% of the Capital Securities of Daravita, and Eagle Holdings held 100% of the Capital Securities of Alkermes Gainesville LLC, a Massachusetts limited liability company (“Alkermes
Gainesville”); 
 WHEREAS, pursuant to the Acquisition Agreement, APIL formed a new Delaware limited liability company
(“Newco”) which, prior to the closing of the transactions contemplated by the Acquisition Agreement, acquired substantially all of the assets and liabilities of Daravita through a reorganization; 

WHEREAS, pursuant to the Acquisition Agreement, the Original Borrower has acquired 100% of the Capital Securities of (i) Alkermes
Gainesville and (ii) Newco (the “Acquisition”); 
 WHEREAS, immediately following the consummation of the Acquisition
on the date hereof, and pursuant to Section 5.24 of the Credit Agreement, a Certificate of Merger has been filed with the Secretary of the Commonwealth of Massachusetts on the date hereof whereby the Original Borrower has merged with and into
Alkermes Gainesville (the “Merger”), with Alkermes Gainesville as the surviving entity and whose name following the Merger is Recro Gainesville LLC (which is the “Surviving Entity” referred to herein); 

WHEREAS, as a result of the Merger, Newco has become a wholly-owned subsidiary of the Surviving Entity and a Loan Party under the Credit
Agreement, and has executed and delivered to the Lender on the date hereof a supplement to the Guarantee and a supplement to the Security Agreement (in addition to taking any other actions as may be required in accordance with Section 7.8 of
the Credit Agreement); 







 WHEREAS, as a result of the Merger, the Surviving Entity has become the Borrower and a Loan Party
under the Credit Agreement, and pursuant to Section 5.24 of the Credit Agreement the Surviving Entity is required to enter into this Agreement on the Closing Date and assume the liabilities and obligations of the Original Borrower arising under
the Loan Documents; 
 WHEREAS, the Surviving Entity desires to assume the liabilities and obligations of the Original Borrower arising
under the Loan Documents pursuant to the terms and conditions of this Agreement and the Credit Agreement; 
 NOW, THEREFORE, the Surviving
Entity hereby agree as follows. 
 1. Credit Agreement. This Agreement is made pursuant to and in accordance with the Credit
Agreement. The Credit Agreement and the other Loan Documents are hereby incorporated herein by reference. 
 2. Assumption of
Liabilities. By its signature below, the Surviving Entity hereby: (a) becomes the Borrower under the Credit Agreement with the same force and effect as if originally named therein as the Borrower, (b) expressly assumes all the
obligations and liabilities of the Original Borrower arising under the Credit Agreement and the other Loan Documents, and (c) agrees to all of the terms and provisions of the Credit Agreement and the other Loan Documents to which the Original
Borrower is a party, including, without limitation, all affirmative and negative covenants contained in Articles VII and VIII of the Credit Agreement. From and after the date hereof, each reference to (i) the “Borrower” in the Credit
Agreement and the other Loan Documents shall be deemed to refer to the Surviving Entity and (ii) each reference to a “Loan Party” or the “Loan Parties” shall be deemed to include the Surviving Entity. 

3. Representations and Warranties. The Surviving Entity represents and warrants to the Lender that (a) this Agreement has been
duly authorized, executed and delivered by the Surviving Entity and constitutes a legal, valid and binding obligation of the Surviving Entity, enforceable against the Surviving Entity in accordance with its terms (except, in any case, as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and by principles of equity), (b) no Default or Event of Default has occurred and is continuing or
would result from the Merger and (c) the Surviving Entity is organized and existing under the laws of the Commonwealth of Massachusetts. 

4. Further Assurances. The Surviving Entity shall execute and deliver such other documents and take such other actions as the Lender
may reasonably request to confirm the assumption of liabilities and obligations executed hereby. 
 5. Loan Document. This Agreement
is a Loan Document executed pursuant to the Credit Agreement and shall (unless otherwise expressly indicated herein) be construed, administered and applied in accordance with the terms and provisions thereof, including Article X thereof. 

  
 2 








 6. Effect on Loan Documents. Except as expressly supplemented hereby, the Loan Documents
shall remain in full force and effect. 
 7. Successors and Assigns. This Agreement shall be binding upon the Surviving Entity and
its successors, transferees and assigns and shall inure to the benefit of and be enforceable by the Lender; provided, that the Surviving Entity may not (unless otherwise permitted under the terms of the Credit Agreement) assign any of its
obligations hereunder without the prior written consent of the Lender. Without limiting the generality of the foregoing, the Lender may assign or otherwise transfer (in whole or in part) its Commitment, Note or Loan held by it to any other Person
under the terms of Section 10.10 of the Credit Agreement, and such other Person shall thereupon become vested with all rights and benefits in respect thereof granted to the Lender under each Loan Document (including this Agreement) or
otherwise. 
 8. Amendment. None of the provisions of this Agreement may be waived, changed or altered except in a writing signed by
the Lender and the Surviving Entity. 
 9. Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such provision and such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Agreement or affecting the validity or enforceability of such
provision in any other jurisdiction. 
 10. Governing Law, Entire Agreement, Etc. THIS AGREEMENT AND ANY CLAIMS, CONTROVERSY, DISPUTE
OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE
STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK). This Agreement, along with the other Loan Documents, constitutes the entire understanding among the parties hereto
with respect to the subject matter hereof and supersedes any prior agreements, written or oral, with respect hereto. 
 11.
Counterparts. This Agreement may be executed by the parties hereto in several counterparts, each of which shall be an original and all of which shall constitute together but one and the same agreement. This Agreement shall become effective
when a counterpart hereof executed on behalf of the Surviving Entity shall have been received by the Lender. Delivery of an executed counterpart of a signature page to this Agreement by email (e.g. “pdf” or “tiff”) or telecopy
shall be effective as delivery of a manually executed counterpart of this Agreement. 
 [Remainder of Page Left Intentionally Blank]


  
 3 








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

			
	SURVIVING ENTITY:
	
	RECRO GAINESVILLE LLC
		
	By:		  

			Name:
			Title:


 [Signature Page to Assumption Agreement] 







 EXHIBIT G 

FORM OF MORTGAGE 
 This Instrument Prepared By and

 Upon Recordation Return to: 
 Covington & Burling
LLP 
 The New York Times Building 
 620 Eighth Avenue 

New York, NY 10018 
 Attention: Peter Schwartz 

RECRO GAINESVILLE LLC, 

A MASSACHUSETTS LIMITED LIABILITY COMPANY, 

SUCCESSOR BY MERGER TO RECRO PHARMA LLC, 

A DELAWARE LIMITED LIABILITY COMPANY 

having an office at 1300 Gould Drive, Gainesville, Georgia, as grantor 

                        
                                         
                       (Grantor) 

to 
 ORBIMED ROYALTY
OPPORTUNITIES II, LP, 
 A DELAWARE LIMITED PARTNERSHIP, TOGETHER WITH ITS AFFILIATES, 

SUCCESSORS, TRANSFEREES AND ASSIGNEES, AS LENDER, 

having an office at 601 Lexington Avenue, 54th Floor, New York, NY 10022, as grantee 

                        
                                         
                                         
              (Grantee) 
  

 
 GEORGIA DEED TO
SECURE DEBT, ASSIGNMENT OF 
 LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING 

(Collateral is or may include Fixtures) 
  

 
  

			
	Dated:        		As of March             , 2015
	Location:        		1300 Gould Drive, Gainesville, Georgia
	County:		Hall County


 THIS DEED TO SECURE DEBT SECURES OBLIGATIONS WHICH MAY PROVIDE FOR FUTURE ADVANCES, ADJUSTMENTS IN THE INTEREST RATE AND
PAYMENT AMOUNTS AND A BALLOON PAYMENT. THE MATURITY DATE OF THE OBLIGATIONS SECURED BY THIS DEED TO SECURE DEBT ARE ON OR BEFORE             , 2020. 







 GEORGIA DEED TO SECURE DEBT, ASSIGNMENT OF LEASES AND RENTS, 

SECURITY AGREEMENT AND FIXTURE FILING 

THIS GEORGIA DEED TO SECURE DEBT, ASSIGNMENT OF LEASES AND RENTS, SECURITY AGREEMENT AND FIXTURE FILING (this “Deed to Secure
Debt”) is made as of this             day of March, 2015, by Recro Gainesville LLC, a Massachusetts limited liability company, successor by merger to Recro Pharma LLC, a
Delaware limited liability company, having an address at 1300 Gould Drive, Gainesville, Georgia, as grantor (“Grantor”), to OrbiMed Royalty Opportunities II, LP, a Delaware limited partnership, having an address at
c/o                                         , in
its capacity as Lender under the hereinafter defined Credit Agreement, together with its affiliates and successors, transferees and assigns, as grantee (“Grantee”). All capitalized terms used but not otherwise defined in this
Deed to Secure Debt shall have the meanings ascribed to them in the Credit Agreement. 
 W I T N E
S S E T H: 
 A. Grantor is the lawful owner and holder of fee simple title in and to that certain lot,
piece or parcel of land as more particularly described in Schedule A attached hereto and by this reference made a part hereof (the “Land”), together with the buildings, structures, additions, enlargements, extensions,
modifications, repairs, replacements and improvements now or hereafter erected or located on the Land (hereinafter, collectively, together with all building materials and building equipment, the “Improvements”) (the Land and
the Improvements, together with the fixtures and other property, rights, privileges, and interests encumbered or conveyed hereby hereinafter, collectively, the “Property”); and 

B. Grantor, as Borrower, and Grantee, as Lender, are parties to a Credit Agreement, dated as of March 7, 2015 (as same may be hereinafter
amended, extended, renewed, modified, restated or supplemented from time to time, the “Credit Agreement”), providing, inter alia, for a certain Term Loan in the maximum principal amount of FIFTY MILLION US
DOLLARS (US$50,000,000), as evidenced by the Note; and 
 C. It is a condition to the obligation of the Lender to extend credit to the
Borrower pursuant to the Credit Agreement, and any and all other loan documents executed and delivered in connection therewith (as each may be amended, restated or modified from time to time collectively, the “Loan
Documents”), that Grantor execute and deliver this Deed to Secure Debt. 
 NOW THEREFORE, in consideration of the making of the
financial accommodations described in the Credit Agreement and the covenants, agreements, representations and warranties set forth in this Deed to Secure Debt: 

PART I - GENERAL PROVISIONS 

Article 1 - GRANTS OF SECURITY 

Section 1.1 PREMISES CONVEYED. Grantor does hereby GRANT, BARGAIN, SELL AND
CONVEY AND CONFIRM, ASSIGN, TRANSFER AND SET OVER unto Grantee, and its successors and assigns, in FEE SIMPLE, with POWER OF SALE AND RIGHT OF ENTRY AND POSSESSION and grant unto Grantee a security interest in and to the following property, rights,
interests and estates now owned, or hereafter acquired by Grantor (collectively, the “Premises”): 
 (a)
Land. The Land; 

  
 - 2 - 








 (b) Additional Land. All additional lands, estates and development rights hereafter
acquired by Grantor for use in connection with the Land and the development of the Land and all additional lands and estates therein which may, from time to time, by supplemental mortgage or otherwise be expressly made subject to the lien of this
Deed to Secure Debt; 
 (c) Improvements. The Improvements; 

(d) Easements. All easements, rights-of-way or use, rights, strips and gores of land, streets, ways, alleys, passages, sewer rights,
water, water courses, water rights and powers, air rights and development rights, and all estates, rights, titles, interests, privileges, liberties, servitudes, tenements, hereditaments and appurtenances of any nature whatsoever, in any way now or
hereafter belonging, relating or pertaining to the Land and the Improvements and the reversion and reversions, remainder and remainders, and all land lying in the bed of any street, road or avenue, opened or proposed, in front of or adjoining the
Land, to the center line thereof and all the estates, rights, titles, interests, dower and rights of dower, curtesy and rights of curtesy, property, possession, claim and demand whatsoever, both at law and in equity, of Grantor of, in and to the
Land and the Improvements and every part and parcel thereof, with the appurtenances thereto; 
 (e) Equipment. All
“equipment,” as such term is defined in Article 9 of the Uniform Commercial Code (as hereinafter defined), now owned or hereafter acquired by Grantor, which is used at or in connection with the Improvements or the Land or is located
thereon or therein (including, but not limited to, all machinery, equipment, furnishings, and electronic data-processing and other office and manufacturing equipment now owned or hereafter acquired by Grantor and any and all additions, substitutions
and replacements of any of the foregoing), together with all attachments, components, parts, equipment and accessories installed thereon or affixed thereto (collectively, the “Equipment”). Notwithstanding the foregoing,
Equipment shall not include any property belonging to tenants under leases except to the extent that Grantor shall have any right or interest therein; 

(f) Fixtures. All Equipment now owned, or the ownership of which is hereafter acquired, by Grantor which is so related to the Land and
Improvements forming part of the Premises that it is deemed fixtures or real property under the law of the State of Georgia, including, without limitation, all building or construction materials intended for construction, reconstruction, alteration
or repair of or installation on the Premises, construction equipment, appliances, machinery, plant equipment, fittings, apparatuses, fixtures and other items now or hereafter attached to, installed in or used in connection with (temporarily or
permanently) any of the Improvements or the Land, including, but not limited to, engines, devices for the operation of pumps, pipes, plumbing, cleaning, call and sprinkler systems, fire extinguishing apparatuses and equipment, heating, steam,
ventilating, plumbing, processing, manufacturing, laundry, incinerating, electrical, air conditioning and air cooling equipment and systems, gas and electric machinery, appurtenances and equipment, pollution control equipment, security systems,
transportation systems, disposals, dishwashers, refrigerators and ranges, recreational equipment and facilities of all kinds, and water, gas, electrical, storm and sanitary sewer facilities, utility lines and equipment (whether owned individually or
jointly with others, and, if owned jointly, to the extent of Grantor’s interest therein) and all other utilities whether or not situated in easements, all water tanks, pipes, water supply, water power sites, fuel stations, fuel tanks, fuel
supply, boilers and all other structures, together with all accessions, appurtenances, additions, replacements, betterments and substitutions for any of the foregoing and the proceeds thereof (collectively, the “Fixtures”).
Notwithstanding the foregoing, “Fixtures” shall not include any property which tenants are entitled to remove pursuant to leases except to the extent that Grantor shall have any right or interest therein; 

  
 - 3 - 








 (g) Personal Property. All furniture, furnishings, objects of art, machinery, goods,
tools, supplies, appliances, general intangibles, contract rights, accounts, accounts receivable, franchises, licenses, certificates and permits, and all other personal property of any kind or character whatsoever (as defined in and subject to the
provisions of the Uniform Commercial Code as hereinafter defined), other than Fixtures, which are now or hereafter owned by Grantor and which are located within or about the Land and the Improvements, together with all accessories, replacements and
substitutions thereto or therefor and the proceeds thereof (collectively, the “Personal Property”), and the right, title and interest of Grantor in and to any of the Personal Property which may be subject to any security
interests, as defined in the Uniform Commercial Code, as adopted and enacted by the state or states where any of the Premises is located (as the same may be amended, the “Uniform Commercial Code”), superior in lien to the
lien of this Deed to Secure Debt and all proceeds and products of the above; 
 (h) Leases and Rents. All leases, lettings, licenses,
occupancy agreements and other agreements affecting the use, enjoyment or occupancy of all or any part of the Land and the Improvements heretofore or hereafter entered into, whether before or after the filing by or against Grantor of any petition
for relief under 11 U.S.C. §101 et seq., as the same may be extend, renewed, modified, replaced or amended from time to time (the “Bankruptcy Code”) (collectively, the “Leases”) and all right,
title and interest of Grantor, its successors and assigns therein and thereunder, including, without limitation, cash or securities deposited thereunder to secure the performance by the lessees of their obligations thereunder and all rents,
additional rents, revenues, issues and profits (including all oil and gas or other mineral royalties and bonuses) from the Land and the Improvements whether paid or accruing before or after the filing by or against Grantor of any petition for relief
under the Bankruptcy Code (collectively, the “Rents”) and all proceeds from the sale or other disposition of the Leases, the right to receive and apply the Rents to the payment of the Obligations; 

(i) Condemnation Awards. All awards or payments, including interest thereon, which may heretofore and hereafter be made with respect to
the Premises, whether from the exercise of the right of eminent domain (including but not limited to any transfer made in lieu of or in anticipation of the exercise of the right), or for a change of grade, or for any other injury to or decrease in
the value of the Premises; 
 (j) Insurance Proceeds. All proceeds in respect of the Premises under any insurance policies covering
the Premises, including, without limitation, the right to receive and apply the proceeds of any insurance, judgments, or settlements made in lieu thereof, for damage to the Premises; 

(k) Tax Certiorari. All refunds, rebates or credits in connection with reduction in real estate taxes and assessments charged against
the Premises as a result of tax certiorari or any applications or proceedings for reduction; 
 (l) Rights. The right, in the name
and on behalf of Grantor, to appear in and defend any action or proceeding brought with respect to the Premises and to commence any action or proceeding to protect the interest of Grantee in the Premises; 

(m) Agreements. All agreements, contracts, certificates, instruments, franchises, permits, licenses, plans, specifications and other
documents, now or hereafter entered into, and all rights therein and thereto, respecting or pertaining to the use, occupation, construction, management or operation of the Land and any part thereof and any Improvements or respecting any business or
activity conducted on the Land and any part thereof and all right, title and interest of Grantor therein and thereunder, including, without limitation, the right, upon the happening of any default hereunder, to receive and collect any sums payable
to Grantor thereunder; 

  
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 (n) Trademarks. All tradenames, trademarks, servicemarks, logos, copyrights, goodwill,
books and records and all other general intangibles relating to or used in connection with the operation of the Premises; 
 (o)
Proceeds. All proceeds of any of the foregoing, including, without limitation, proceeds of insurance and condemnation awards, whether cash, liquidation or other claims or otherwise; and 

(p) Other Rights. Any and all other rights of Grantor in and to the items set forth in Subsections (a) through
(o) above. 
 AND without limiting any of the other provisions of this Deed to Secure Debt, to the extent permitted by
applicable law, Grantor expressly grants to Grantee, as secured party, a security interest in the portion of the Premises which is or may be subject to the provisions of the Uniform Commercial Code which are applicable to secured transactions; it
being understood and agreed that the Improvements and Fixtures are part and parcel of the Land (the Land, the Improvements and the Fixtures collectively referred to as the “Real Property”) appropriated to the use thereof and,
whether affixed or annexed to the Real Property or not, shall for the purposes of this Deed to Secure Debt be deemed conclusively to be real estate and conveyed hereby. 

Section 1.2 Assignment of Leases and Rents. 

(a) This Deed to Secure Debt is intended to and hereby does create an absolute and present assignment to Grantee of the items of Premises
constituting Rents, and not merely the passing of a security interest; provided, that Grantor shall have the right and license to collect said Rents under the Leases as the same shall accrue until terminated during the continuance of an Event of
Default as provided in this Deed to Secure Debt. 
 (b) This Deed to Secure Debt is intended to be and hereby is an assignment of leases and
the rights and interests arising thereunder, and Grantor hereby assigns, transfers and sets over to Grantee, as further security for the payment of the Obligations and other documents evidencing such Rents, all the right, title and interest of
Grantor in, under and by virtue of any and all existing and future Leases, any and all guarantees of the tenants’ obligations under any provisions thereof, all security deposits delivered by tenants thereunder, whether in cash or letter of
credit, all rights and claims for damage against tenants arising out of defaults under the Leases, including rights to termination fees and compensation with respect to rejected Leases pursuant to Section 365(a) of the United States Bankruptcy
Code or any replacement Section thereof, and all tenant improvements and fixtures located on the Premises; provided, however, that Grantor is hereby granted a license to collect Rents under the Leases until terminated during the continuation of any
Event of Default as provided in this Deed to Secure Debt. Grantor covenants that Grantor is the sole owner of the entire landlord’s or lessor’s interest in the Leases; that the Leases have not been and shall not be altered, modified, or
amended in any manner whatsoever save as therein and herein set forth; that the tenant(s) or lessee(s) named therein are not in default under any of the terms, covenants or conditions thereof; that no Rent reserved in the Leases has been assigned or
anticipated; and that no Rent for any period subsequent to the date hereof has been collected in advance of the time when the same became due under the terms of the Leases. Grantor covenants with Grantee to observe and perform all the obligations
imposed upon the landlord or lessor under the Leases and not to do or permit to be done anything to impair the security thereof; not to collect any of the Rent arising or accruing under the Leases or from the Premises in advance of the time when the
same shall become due; not to execute any other assignment of landlord’s or lessor’s interest in the Leases or assignment of Rents arising or accruing from the Leases or from the Premises except as hereinafter set forth; not to enter into
any new Leases of the Premises or alter, modify, or change the terms of the Leases or cancel or terminate the same or accept a surrender thereof without the prior written consent of Grantee (which consent shall


  
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not be unreasonably withheld, conditioned or delayed); and at Grantee’s request, to further assign and transfer to Grantee any and all future Leases upon all or any part of the Premises, and
to execute and deliver, at the request of Grantee, all such further assurances and assignments as Grantee shall from time to time reasonably require. Grantor will not execute any other assignment of the Leases or of any interest therein or of any of
the Rents payable thereunder. Grantor will give prompt notice to Grantee of any notice of Grantor’s default received from any tenant, lessee or any other person and furnish Grantee with complete copies of said notice. If reasonably requested by
Grantee, Grantor will enforce the Leases and all remedies available to Grantor against the tenant in case of default under the Leases by any tenant. 

(c) Grantor hereby further grants to Grantee the right (i) to enter upon and take possession of the Premises for the purpose of
collecting the said Rents, (ii) to dispossess by the usual summary proceedings (or any other proceedings of Grantee’s selection) any tenant defaulting in the payment thereof to Grantee, (iii) to lease the Premises, or any part
thereof, and (iv) to apply said Rents, after payment of all necessary charges and expenses, on account of said Obligations. Such assignment and grant shall continue in effect until the Obligations is paid, the execution of this Deed to Secure
Debt constituting and evidencing the irrevocable consent of Grantor to the entry upon and taking possession of the Premises by Grantee pursuant to such grant, whether foreclosure has been instituted or not and without applying for a receiver. So
long as an Event of Default shall not have occurred and be continuing, Grantee will not exercise any of its rights under Section 1.2, and Grantee shall not receive and collect the Rents of the Premises accruing under any Lease. Such
license of Grantor to collect and receive said Rents may be revoked by Grantee upon the occurrence of an Event of Default. 
 (d) Grantee
shall not be liable for any loss sustained by the Grantor resulting from the failure of Grantee to let the leasable premises or the Premises after default or from any other act or omission of Grantee in managing the Premises after default, unless
such loss is caused by the gross negligence or willful misconduct of Grantee as determined by a court of competent jurisdiction in a final nonappealable order. Grantee shall not be obligated to perform or discharge, nor does Grantee hereby undertake
to perform or discharge, any obligation, duty or liability under the Leases or under or by reason of this Deed to Secure Debt, and Grantor shall, and does hereby agree to, indemnify Grantee for, and to hold Grantee harmless from any and all
liabilities, losses and damages which may or might be incurred under the Leases or under or by reason of this Deed to Secure Debt and from any and all claims and demands whatsoever, in each case, prior to the foreclosure of the Deed to Secure Debt
lien created hereby, which may be asserted against Grantee by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants or agreements contained in the Leases, except to the extent of such loss,
liability, or damage as is caused by the gross negligence or willful misconduct of Grantee as determined by a court of competent jurisdiction in a final nonappealable order. 

(e) Upon the occurrence and during the continuance of an Event of Default, the right and license to collect Rents granted to Grantor above
shall automatically be revoked and Grantee is authorized at any time, without notice, in its sole discretion, to enter upon and take possession of the Premises or any part thereof, and to perform any acts Grantee deems necessary or proper to
conserve the security, including, without limitation, manage and operate the Premises and the Grantor’s business on the Premises, and take possession of and use all books of account and financial records of the Grantor and its property managers
or representatives, if any, relating to the Premises. With or without taking possession or having a receiver appointed, Grantee is entitled to collect and receive all Rents, including those past due as well as those accruing. Grantor irrevocably
agrees that all such tenants shall be authorized to pay the Rents directly to Grantee without liability of such tenants for the determination of the actual existence of any default by Grantor claimed by Grantee. Tenants shall be expressly relieved
of any and all duty, liability and obligation to Grantor in connection with any and all Rents so paid. Grantee shall be entitled to have a receiver appointed with or without notice by a court. Said receiver shall be authorized, without notice, to
enter upon and take possession of the Premises and take any act it deems necessary or proper to 

  
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conserve the security. With or without taking possession said receiver shall be entitled to collect the Rents and apply the same as the court may direct. Grantee or the receiver may also take
possession of, and for these purposes use, any and all personal property used by Grantor in the rental or leasing of the Premises or any part thereof. The expense (including receiver’s fees, reasonable counsel fees, costs and agent’s
compensation) incurred pursuant to the powers herein contained shall be secured hereby. Grantee shall (after payment of all such out of pocket costs and expenses incurred) apply such Rents received by it to the Deed to Secure Debt and Obligations
secured hereunder in such order as Grantee determines; and Grantor agrees that exercise of such rights and disposition of such funds shall not constitute a waiver of any foreclosure once commenced nor preclude the later commencement of foreclosure
for breach hereof. The right to enter and take possession of the Premises, the right to manage and operate the same, and the right to collect the Rents, in each case whether by a receiver or otherwise, shall be cumulative to any other right or
remedy hereunder or afforded by law, and may be exercised concurrently therewith or independently thereof. Grantee shall be liable to account only for such Rents actually received by Grantee. Grantor hereby specifically authorizes Grantee, and
hereby irrevocably constitutes and appoints Grantee as Grantor’s agent and attorney-in-fact, in Grantor’s or Grantee’s name, to do any of the foregoing, said power of attorney being coupled with an interest and not revoked by
insolvency, bankruptcy, death, dissolution or otherwise. 
 Section 1.3
SECURITY AGREEMENT. This Deed to Secure Debt is made pursuant to Official Code of Georgia Annotated (“O.C.G.A.”) Section 44-14-60, and is both a real property Deed to
Secure Debt and a “security agreement” within the meaning of the Uniform Commercial Code. The Premises includes both real and personal property and all other rights and interests, whether tangible or intangible in nature, of Grantor in the
Premises. By executing and delivering this Deed to Secure Debt, Grantor hereby grants to Grantee, as security for the Obligations (hereinafter defined), a security interest in the Fixtures, the Equipment, the Personal Property and other property
constituting the Premises to the full extent that the Fixtures, the Equipment, the Personal Property and such other property may be subject to the Uniform Commercial Code (said portion of the Premises so subject to the Uniform Commercial Code being
called the “Collateral”). Without limiting the foregoing, Grantor hereby grants to Grantee a security interest in all of its present and future “Equipment” and “General Intangibles” (as said quoted terms
are defined in the Uniform Commercial Code of the state where the Premises are located), and Grantee shall have, in addition to all rights and remedies provided herein, and in any other agreements, commitments and undertakings made by Grantor to
Grantee, all of the rights and remedies of a “Secured Party” under the Georgia Uniform Commercial Code and the Uniform Commercial Code of the state of Grantor’s creation. If the lien of this Deed to Secure Debt is subject to a
security interest covering any such personal property, then all of the right, title and interest of Grantor in and to any and all such property is hereby assigned to Grantee, together with the benefits of all deposits and payments now or hereafter
made thereon by Grantor. During the continuation of any Event of Default, Grantee, in addition to any other rights and remedies which it may have, shall have and may exercise immediately and without demand, any and all rights and remedies granted to
a secured party upon default under the Uniform Commercial Code, including, without limiting the generality of the foregoing, the right to take possession of the Collateral or any part thereof, and to take such other measures as Grantee may deem
necessary for the care, protection and preservation of the Collateral. Upon request or demand of Grantee during the continuation of any Event of Default, Grantor shall, at its expense, assemble the Collateral and make it available to Grantee at a
convenient place (at the Land if tangible property) reasonably acceptable to Grantee. Grantor shall pay to Grantee on demand any and all expenses, including reasonable legal expenses and attorneys’ fees, incurred or paid by Grantee in
protecting its interest in the Collateral and in enforcing its rights hereunder with respect to the Collateral during the continuation of any Event of Default. Any notice of sale, disposition or other intended action by Grantee with respect to the
Collateral sent to Grantor in accordance with the provisions hereof at least ten (10) Business Days prior to such action, shall, except as otherwise provided by applicable law, constitute reasonable notice to Grantor. The proceeds of any
disposition of the Collateral, or any part thereof, may, except as otherwise required 

  
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by applicable law, be applied by Grantee to the payment of the Obligations in such priority and proportions as required under the Credit Agreement. The principal place of business of Grantor
(Secured Debtor) is as set forth on page one hereof and the address of Grantee (Secured Party) is as set forth on page one hereof. 

Section 1.4 FIXTURE FILING. Certain of the Premises is or will become
“fixtures” (as that term is defined in the Uniform Commercial Code) on the Land, described or referred to in this Deed to Secure Debt, and this Deed to Secure Debt, upon being filed for record in the real estate records of the city or
county wherein such fixtures are situated, shall operate also as a financing statement filed as a fixture filing in accordance with the applicable provisions of said Uniform Commercial Code upon such of the Premises that is or may become fixtures.
For this purpose the following information is included: (i) Grantor is the “Debtor” with the address set forth on the first page hereof; (ii) Grantee is the “Secured Party” with the address set forth on the first page
hereof; (iii) this document and any security interest granted herein covers goods which are or are to become fixtures; (iv) the jurisdiction of organization of the Grantor is set forth on the first page hereof; and (v) Grantor is the
record owner of the Land and the Improvements. Grantor hereby authorizes Grantee to file any financing statements in connection therewith with the appropriate public office. 

Section 1.5 PLEDGES OF MONIES HELD.
Grantor hereby pledges to Grantee any and all monies now or hereafter held by Grantee or on behalf of Grantee, as additional security for the Obligations until expended or applied as provided in this Deed to Secure Debt. 

CONDITIONS TO GRANT 
 TO HAVE AND
TO HOLD the above granted and described Premises unto and to the use and benefit of Grantee and its successors and assigns forever, in fee simple. 

THIS INSTRUMENT IS A DEED passing legal title pursuant to the laws of the State of Georgia governing deeds to secure debt and establishes a
perpetual security title in the Premises in favor of Grantee. This instrument is also a security agreement by which Grantor does hereby grant a present and continuing security interest in and security title to that portion of the Premises
constituting fixtures, goods, intangibles, the leases, rents and all other collateral covered by the Uniform Commercial Code pursuant to the Georgia Uniform Commercial Code. To the extent permitted by applicable law, this instrument is also a
“fixture filing” for the purposes of the Uniform Commercial Code. Should the Obligations be satisfied in full and Grantor performs all the covenants herein contained and contained in the Credit Agreement and the Loan Documents, then this
Deed to Secure Debt shall be canceled and surrendered, it being intended by the parties hereto that this instrument shall operate as a deed, and not as a mortgage creating a lien only; provided, however, that Grantor’s obligation to indemnify
and hold harmless Grantee pursuant to the provisions hereof shall survive any such payment or release. 
 Article 2- OBLIGATIONS SECURED 

Section 2.1 OBLIGATIONS. This Deed to Secure Debt shall secure all the Obligations. 

Section 2.2 OTHER OBLIGATIONS. This Deed to Secure Debt and the grants,
assignments and transfers made in Article 1 are also given for the purpose of securing the following (the “Other Obligations”): 

(a) the due and punctual payment and performance of all other obligations of Grantor contained in this Deed to Secure Debt; and 

  
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 (b) the performance of each obligation of Grantor contained in any renewal, extension, amendment,
modification, consolidation, change of, or substitution or replacement for, all or any part of the Credit Agreement or this Deed to Secure Debt. 

Section 2.3 OBLIGATIONS AND OTHER OBLIGATIONS.
Grantor’s obligations for the payment and performance of the Obligations and the Other Obligations may sometimes be referred to collectively herein as the “Obligations.” 

Article 3 - REPRESENTATIONS AND WARRANTIES OF GRANTOR 

Grantor represents and warrants to Grantee as follows: 

Section 3.1 TITLE TO PREMISES. The right, title and interest of
Grantor constitutes good, marketable and insurable fee simple title to the Premises, subject only to those Liens permitted under Section 8.3 of the Credit Agreement (“Permitted Liens”), including but not limited
to those set forth on Exhibit B. Grantor has full power and lawful authority to encumber the Premises in the manner and form set forth hereunder. Grantor owns all fixtures and articles of personal property now or hereafter comprising part of
the Premises, subject to the rights of space tenants in and to any such fixtures, personal property or installations, including any substitutions or replacements thereof free and clear of all liens and claims other than the Permitted Liens and the
matters set forth in this Section 3.1; and such fixtures will be kept on or at the Premises and will not be removed from the Premises by Grantor, except as permitted under the Loan Documents and except such portions or items of such
fixtures that are consumed or worn out in ordinary usage, all of which shall be promptly replaced by Grantor, except as otherwise expressly provided in the Loan Documents; and all covenants and Obligations of Grantor contained herein relating to the
Premises shall be deemed to apply to the Fixtures whether or not expressly referred to herein. This Deed to Secure Debt is and will remain a valid and enforceable first lien on the Premises. Grantor will preserve such title, and will forever warrant
and defend the validity and priority of the lien hereof against the claims of all persons and parties whatsoever, subject to said exceptions to title. 

Section 3.2 DEED TO SECURE DEBT
AUTHORIZED. The execution, delivery and performance by Grantor of this Deed to Secure Debt have been duly authorized by all necessary action, and do not contravene (i) Grantor’s Organic Documents,
(ii) any court decree or order binding on or affecting Grantor or (iii) any law or governmental regulation binding on or affecting Grantor; or result in (i) or require the creation or imposition of any Lien on Grantor’s
properties (except as permitted by this Agreement) or (ii) a default under any Material Agreement. Grantor is duly organized, validly existing and is in good standing under the laws of the state of its formation, and has (i) all necessary
licenses, authorizations, registrations, permits and/or approvals that, in each case, are material to the operation and conduct of its business and (ii) full power and authority to own its properties and carry on its business as presently
conducted and the execution and delivery by it of this Deed to Secure Debt and the Loan Documents. 
 Section 3.3
FLOOD DETERMINATION. The Premises are [not]1 located in an area identified by the Director of the Federal Emergency Management Agency as a zone
having special flood hazards, described in 12 C.F.R. § 22.2, pursuant to the terms of the National Flood Insurance Act of 1968, or the Flood Disaster Protection Act of 1973, as same may have been amended to date. 

Section 3.4 PERMITS. Grantor has all Permits, including Environmental Permits, necessary or required
for ownership, operation and conduct of its business on the Premises or any part thereof. All 
  

 

	1 	 To be confirmed 



  
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such Permits are validly held and there are no defaults thereunder. The present use and/or occupancy of the Premises does not conflict with or violate any such Permit or, or any applicable law,
ordinance, statute, rule, order, requirement or regulation.  
 Section 3.5 OTHER
REPRESENTATIONS. All of the representations and warranties of Grantor contained in the Credit Agreement are hereby incorporated herein by reference to the same extent and with the same force as if fully set forth
herein. 
 Article 4 - GRANTOR COVENANTS 

Grantor covenants and agrees that: 

Section 4.1 PAYMENT OF THE OBLIGATIONS. Grantor will
pay and perform the Obligations at the time and in the manner provided in the Loan Documents and this Deed to Secure Debt. 

Section 4.2 MAINTENANCE OF PREMISES. Grantor shall maintain
or cause the Premises to be maintained in accordance with Section 7.3 of the Credit Agreement. The Improvements, the Fixtures, the Equipment and the Personal Property shall not be removed, demolished or materially altered (except for
normal replacement of the Fixtures, the Equipment or the Personal Property, tenant finish and refurbishment of the Improvements) without the consent of Grantee, except as otherwise permitted under the Credit Agreement. Grantor shall promptly repair,
replace or rebuild any part of the Premises which may be destroyed by any Casualty or become damaged, worn or dilapidated or which may be affected by any Condemnation, and shall complete and pay for any structure at any time in the process of
construction or repair on the Land. Grantor shall comply with all applicable laws and Permits applicable to the Premises in accordance with and to the extent required by the Credit Agreement. Grantor shall provide Grantee notice of environmental
matters affecting the Premises to the extent and at the times and in the manner specified in Section 7.6 of the Credit Agreement. Grantor shall not cause or suffer to exist any Release of any Hazardous Materials at, to or from the
Premises that would violate Section 7.6 of the Credit Agreement. 
 Section 4.3 USE OF
PREMISES. Grantor shall not commit or suffer any waste of the Premises or make any change in the use of the Premises which will in any way materially increase the risk of fire or other hazard arising out of the
operation of the Premises, or take any action that might invalidate or allow the cancellation of any policy of insurance, or do or permit to be done thereon anything that may in any way materially impair the value of the Premises or the security of
this Deed to Secure Debt. Grantor will not, without the prior written consent of Grantee, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the subsurface of the Land, regardless of the
depth thereof or the method of mining or extraction thereof. Grantor shall not initiate, join in, acquiesce in or consent to any change in any private restrictive covenant, zoning law or other public or private restriction, limiting or defining the
use which may be made of the Premises. If under applicable zoning provisions the use of the Premises is or shall become a nonconforming use, Grantor shall not cause or permit such nonconforming use to be discontinued or abandoned without the consent
of Grantee. Except as expressly permitted by the Credit Agreement or the Loan Documents, Grantor shall not change the use of the Premises. 

Section 4.4 INSURANCE. Grantor shall obtain and maintain, or cause to be maintained, in full force
and effect at all times insurance with respect to Grantor and the Premises as required pursuant to the Credit Agreement and the Loan Documents. If the Premises, or any part thereof, shall be destroyed or damaged by fire or other casualty, the
provisions of the Credit Agreement shall govern the disposition of any insurance proceeds related to such loss. 

  
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 Section 4.5 MAINTENANCE OF
EXISTENCE. Grantor will, so long as it is owner of the Premises (or any part thereof or interest therein), maintain its legal existence in accordance with Section 7.2 of the Credit Agreement. 

Section 4.6 CONDEMNATION AWARDS. The provisions of the Credit Agreement in respect of
a Casualty Event shall control any proceedings for the condemnation of the Premises or any part thereof. 
 Section 4.7
PAYMENT FOR LABOR AND MATERIALS. (a) Grantor will promptly pay when due all bills and costs for labor, materials, and
specifically fabricated materials (“Labor and Material Costs”) incurred in connection with the Premises and never permit to exist beyond the due date thereof in respect of the Premises or any part thereof any lien or security
interest, even though inferior to the liens and the security interests hereof, and in any event never permit to be created or exist in respect of the Premises or any part thereof any other or additional lien or security interest other than the liens
or security interests hereof except for the Permitted Liens. Subject to Grantor’s rights under Section 4.7(b) below, in the event that Grantor fails in a timely manner to make payment in full of or discharge such liens Grantee may,
but shall not be obligated to, make payment or discharge such liens, upon notice to Grantor if practicable in order to preserve the lien of this Deed to Secure Debt or the collateral value of the Premises and Grantor shall, on demand, reimburse
Grantee for all sums so expended and such amounts shall bear interest at the Default Rate. Grantee has not consented to any contract or to any work or to the furnishing of any materials which might be deemed to create a lien or liens superior to the
lien of this instrument whether under any applicable statute or otherwise, other than Permitted Liens. 
 (b) After prior written notice to
Grantee, Grantor, at its own expense, may contest by appropriate legal proceeding, promptly initiated and conducted in good faith and with due diligence, the amount or validity or application in whole or in part of any of the Labor and Material
Costs, provided that (i) no Event of Default Period is continuing, (ii) Grantor is permitted to do so under the provisions of any other mortgage or deed to secure debt affecting the Premises, (iii) such proceeding shall suspend the
collection of the Labor and Material Costs from Grantor and from the Premises or Grantor shall have paid all of the Labor and Material Costs under protest, (iv) such proceeding shall be permitted under and be conducted in accordance with the
provisions of any other instrument to which Grantor is subject and shall not constitute a default thereunder, (v) neither the Premises nor any part thereof or interest therein will be in danger of being sold, forfeited, terminated, canceled or
lost, and (vi) Grantor shall have furnished the security as may be required in the proceeding, or as may be reasonably requested by Grantee to insure the payment of any contested Labor and Material Costs, together with all interest and
penalties thereon. If at any time payment of any Labor and Material Costs shall become necessary (a) to prevent the sale or forfeiture of the Premises or any portion thereof because of non-payment, or (b) to protect the lien of this Deed
to Secure Debt, then Grantor shall pay the same in sufficient time to prevent the sale or forfeiture of the Premises or to protect the lien of this Deed to Secure Debt, as the case may be. 

Section 4.8
PERFORMANCE OF OTHER AGREEMENTS. Grantor shall observe and perform each and every term, covenant and provision to be observed or performed by Grantor
pursuant to the Credit Agreement, the Loan Documents and any other agreement or recorded instrument affecting or pertaining to the Premises and any amendments, modifications or changes thereto. 

Section 4.9 TITLE. Grantor is the sole legal and beneficial owner of the fee simple interest in the
Real Property, subject to no Lien or other encumbrance except Permitted Liens. Except as may be expressly permitted by the Credit Agreement, without the prior written consent of Grantee, Grantor shall not: (i) execute any conditional bill of
sale, chattel mortgage or other security instruments covering any furniture, furnishings, fixtures and equipment, intended to be incorporated in the Premises or the appurtenances thereto, or covering articles of personal property placed in the
Premises or purchase any of such furniture, furnishings, fixtures and equipment so that ownership of the same will not vest 

  
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unconditionally in Grantor, free from encumbrances on delivery to the Premises; (ii) further mortgage, encumber, alienate, hypothecate, grant a security interest in or grant any other
interest whatsoever in the Premises or any part thereof, or interest therein. or (iii) amend, modify, refinance, increase in amount, replace or substitute any deed to secure debt, mortgage, pledge or encumbrance affecting the Premises or any
part thereof or any interest therein. 
 Section 4.10 ESTOPPEL CERTIFICATES.
Grantor, within ten (10) Business Days upon request in person or by mail, shall furnish to Grantee a written statement, duly acknowledged, setting forth the amount due on this Deed to Secure Debt, the terms of payment and the maturity date of
the Obligations, the date to which interest has been paid, whether any offsets or defenses exist against the Obligations and, if any are alleged to exist, a detailed description of the nature thereof. 

Section 4.11 INCORPORATION BY REFERENCE. All the covenants,
conditions and agreements contained in the Loan Documents are hereby made a part of this Deed to Secure Debt to the same extent and with the same force as if fully set forth herein. 

Article 5 - OBLIGATIONS AND RELIANCES 

Section 5.1
RELATIONSHIP OF GRANTOR AND GRANTEE. The relationship between Grantor and Grantee is solely that of debtor and creditor, and Grantee
has no fiduciary or other special relationship with Grantor, and no term or condition of the Credit Agreement, the Loan Documents or this Deed to Secure Debt shall be construed so as to deem the relationship between Grantor and Grantee to be other
than that of debtor and creditor. 
 Section 5.2
NO RELIANCE ON GRANTEE. The general partners, members, principals and (if Grantor is a trust) beneficial owners of Grantor are experienced in the
ownership and operation of properties similar to the Premises, and Grantor and Grantee are relying solely upon such expertise and business plan in connection with the ownership and operation of the Premises. Grantor is not relying on Grantee’s
expertise, business acumen or advice in connection with the Premises. 
 Section 5.3
NO GRANTEE OBLIGATIONS. Notwithstanding the provisions of Subsections 1.1(h) and (m) or Section 1.2, Grantee is not undertaking the
performance of (i) any obligations under the Leases; or (ii) any obligations with respect to such agreements, contracts, certificates, instruments, franchises, permits, trademarks, licenses and other documents. By accepting or approving
anything required to be observed, performed or fulfilled or to be given to Grantee pursuant to this Deed to Secure Debt or the Credit Agreement, including, without limitation, any officer’s certificate, balance sheet, statement of profit and
loss or other financial statement, survey, appraisal, or insurance policy, Grantee shall not be deemed to have warranted, consented to, or affirmed the sufficiency, the legality or effectiveness of same, and such acceptance or approval thereof shall
not constitute any warranty or affirmation with respect thereto by Grantee. 
 Section 5.4
RELIANCE. Grantor recognizes and acknowledges that in accepting the Credit Agreement and this Deed to Secure Debt, Grantee is expressly and primarily relying on the truth and accuracy of the warranties and
representations set forth in the Loan Documents without any obligation to investigate the Premises and notwithstanding any investigation of the Premises by Grantee; that such reliance existed on the part of Grantee prior to the date hereof, that the
warranties and representations are a material inducement to the Secured Parties to enter into the financial accommodations described in the Credit Agreement; and that the Secured Parties would not be willing to provide such accommodations and cause
Grantee to accept this Deed to Secure Debt in the absence of the warranties and representations as set forth in the Loan Documents. 

  
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 Article 6 - FURTHER ASSURANCES 

Section 6.1 RECORDING OF DEED TO SECURE
DEBT, ETC. Grantor forthwith upon the execution and delivery of this Deed to Secure Debt and thereafter, from time to time, will cause this Deed to Secure Debt and any of the other documents or
instruments creating a lien or security interest or evidencing the lien hereof upon the Premises and each instrument of further assurance to be filed, registered or recorded in such manner and in such places as may be required by any present or
future law in order to publish notice of and fully to protect and perfect the lien or security interest hereof upon, and the interest of Grantee in, the Premises. Grantor will pay all taxes, charges, filing, registration or recording fees, and all
expenses incident to the preparation, execution, acknowledgment and/or recording of this Deed to Secure Debt and any other document or instrument executed in connection herewith, any note, document or instrument, deed to secure debt or mortgage
supplemental hereto, any deed to secure debt with respect to the Premises and any instrument of further assurance, and any modification or amendment of the foregoing documents, and all federal, state, county and municipal taxes, duties, imposts,
assessments and charges arising out of or in connection with the execution and delivery of this Deed to Secure Debt, or any deed to secure debt or mortgage supplemental hereto, any deed to secure debt with respect to the Premises or any instrument
of further assurance, and any modification or amendment of the foregoing documents, except where prohibited by law so to do. 

Section 6.2 FURTHER ACTS, ETC. Grantor will, at the cost of Grantor, and
without expense to Grantee, do, execute, acknowledge and deliver all and every such further acts, deeds, conveyances, deeds to secure debt, assignments, notices of assignments, transfers and assurances as Grantee shall, from time to time, reasonably
require, for the better assuring, conveying, assigning, transferring, and confirming unto Grantee the property and rights hereby deeded, granted, bargained, sold, conveyed, confirmed, pledged, assigned, warranted and transferred or intended now or
hereafter so to be, or which Grantor may be or may hereafter become bound to convey or assign to Grantee, or for carrying out the intention or facilitating the performance of the terms of this Deed to Secure Debt or for filing, registering or
recording this Deed to Secure Debt, or for complying with all requirements of applicable law. Grantor hereby authorizes Grantee to file one or more financing statements to evidence and perfect the security interest of Grantee in the Premises,
including, without limitation, financing statements containing the description “all assets of Grantor” or “all personal property of Grantor” or similar language. Upon the occurrence and continuance of an Event of Default, Grantor
grants to Grantee an irrevocable power of attorney coupled with an interest for the purpose of exercising and perfecting any and all rights and remedies available to Grantee at law and in equity, including without limitation such rights and remedies
available to Grantee pursuant to this Section 6.2, and this power, being coupled with an interest, shall be, irrevocable as long as any part of the Obligations remains unpaid. 

Section 6.3 CHANGES IN TAX, CREDIT AND
DOCUMENTARY STAMP LAWS. If any law is enacted or adopted or amended after the date of this Deed to Secure Debt which imposes a tax, either directly or indirectly, on the Secured
Parties’ or Grantee’s interest in the Premises, Grantor will pay the tax, with interest and penalties thereon, if any, within ten (10) days after demand by Grantee. Grantor will not claim or demand or be entitled to any credit or
credits on account of the Obligations for any part of the Taxes or Other Charges assessed against the Premises, or any part thereof, and no deduction shall otherwise be made or claimed from the assessed value of the Premises, or any part thereof,
for real estate tax purposes by reason of this Deed to Secure Debt or the Obligations. If at any time the United States of America, any State thereof or any subdivision of any such State shall require revenue or other stamps to be affixed to the
Credit Agreement, this Deed to Secure Debt, or any of the other Loan Documents or impose any other tax or charge on the same, Grantor will pay for the same, with interest and penalties thereon, if any. 

  
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 Section 6.4 SPLITTING OF DEED
TO SECURE DEBT. This Deed to Secure Debt and the Credit Agreement shall, at any time until the Obligations shall be fully paid and satisfied, at the sole election of Grantee, be split
or divided into two or more trusts and two or more deeds to secure debt, each of which shall cover all or a portion of the Premises to be more particularly described therein. To that end, Grantor, upon written request of Grantee, shall execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered by the then owner of the Premises, to Grantee and/or its designee or designees substitute trust agreements, notes and deeds to secure debt in such principal amounts,
aggregating not more than the Obligations, and containing terms, provisions and clauses similar to those contained herein and in the Credit Agreement, and such other documents and instruments as may be required by Grantee. 

Section 6.5 REPLACEMENT DOCUMENTS. Upon receipt of an affidavit of an officer of
Grantee as to the loss, theft, destruction or mutilation of any Loan Documents executed by Grantor or any document or instrument executed by Grantor in connection therewith which is not of public record, and, in the case of any such mutilation, upon
surrender and cancellation of such Loan Documents or other document or instrument, Grantor will issue, in lieu thereof, a replacement Loan Document or other document or instrument, dated the date of such lost, stolen, destroyed or mutilated Loan
Document or other document or instrument in the same principal amount and otherwise of like tenor. 
 Article 7 - DUE ON SALE/ENCUMBRANCE

 Section 7.1 GRANTEE RELIANCE. Grantor acknowledges that Grantee, for the
benefit of the Secured Parties, has a valid interest in maintaining the value of the Premises so as to ensure that, during any Event of Default, Grantee can recover a portion of the Obligations by a sale of the Premises. 

Section 7.2 NO TRANSFER. Grantor shall not permit or suffer any direct or
indirect sale, transfer, lease, pledge, assignment, mortgage, conveyance, grant, alienation or other disposition of all or a portion of the Premises except as permitted under the Credit Agreement. 

Article 8 - RIGHTS AND REMEDIES UPON DEFAULT 

Section 8.1 EVENT OF DEFAULT. For purposes of this Deed to Secure
Debt, references to an “Event of Default” shall mean an “Event of Default” under and as defined in the Credit Agreement which shall constitute an Event of Default under this Deed to Secure Debt. 

Section 8.2 REMEDIES. Upon the occurrence of and during the continuance of any Event of Default,
Grantor agrees that Grantee may take such action, without notice or demand, as it deems advisable to protect and enforce its rights against Grantor and in and to the Premises, including, but not limited to, the following actions, each of which may
be pursued concurrently or otherwise, at such time and in such order as Grantee may determine, in their sole discretion, without impairing or otherwise affecting the other rights and remedies of Grantee: 

(a) declare the entire unpaid Obligations to be immediately due and payable; 

(b) institute proceedings, judicial or otherwise, for the complete foreclosure of this Deed to Secure Debt under any applicable provision of
law, in which case the Premises or any interest therein may be sold for cash or upon credit in one or more parcels or in several interests or portions and in any order or manner; 

  
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 (c) with or without entry, to the extent permitted and pursuant to the procedures provided by
applicable law, institute proceedings for the partial foreclosure of this Deed to Secure Debt for the portion of the Obligations then due and payable, subject to the continuing lien and security interest of this Deed to Secure Debt for the balance
of the Obligations not then due, unimpaired and without loss of priority; 
 (d) sell for cash or upon credit the Premises or any part
thereof and all estate, claim, demand, right, title and interest of Grantor therein and rights of redemption thereof, pursuant to power of sale or otherwise, at one or more sales, as an entirety or in parcels, at such time and place, upon such terms
and after such notice thereof as may be required or permitted by law; 
 (e) institute an action, suit or proceeding in equity for the
specific performance of any covenant, condition or agreement contained herein, in the Credit Agreement, the Loan Documents, this Deed to Secure Debt or any other document or instrument executed in connection therewith; 

(f) recover judgment on the Obligations either before, during or after any proceedings for the enforcement of this Deed to Secure Debt, the
Credit Agreement, any Loan Document or any other document or instrument executed in connection therewith; 
 (g) apply for the appointment
of a receiver, trustee, liquidator or conservator of the Premises, without notice and without regard for the adequacy of the security for the Obligations and without regard for the solvency of Grantor, any guarantor, indemnitor or any Person liable
for the payment of the Obligations to which appointment Grantor does hereby consent; 
 (h) the license granted to Grantor under
Section 1.2 hereof shall automatically be revoked and Grantee may enter into or upon the Premises, either personally or by its agents, nominees or attorneys and dispossess Grantor and its agents and servants therefrom, without liability
for trespass, damages or otherwise and exclude Grantor and its agents or servants wholly therefrom, and take possession of all books, records and accounts relating thereto and Grantor agrees to surrender possession of the Premises and of such books,
records and accounts to Grantee upon demand, and thereupon Grantee may (i) use, operate, manage, control, insure, maintain, repair, restore and otherwise deal with all and every part of the Premises and conduct the business thereat;
(ii) complete any construction on the Premises in such manner and form as Grantee deems advisable; (iii) make alterations, additions, renewals, replacements and improvements to or on the Premises; (iv) exercise all rights and powers
of Grantor with respect to the Premises, whether in the name of Grantor or otherwise, including, without limitation, the right to make, cancel, enforce or modify Leases, obtain and evict tenants, and demand, sue for, collect and receive all Rents of
the Premises and every part thereof; (v) require Grantor to pay monthly in advance to Grantee, or any receiver appointed to collect the Rents, the fair and reasonable rental value for the use and occupation of such part of the Premises as may
be occupied by Grantor; (vi) require Grantor to vacate and surrender possession of the Premises to Grantee or to such receiver and, in default thereof, Grantor may be evicted by summary proceedings or otherwise; and (vii) apply the
receipts from the Premises to the payment of the Obligations, in such order, priority and proportions as required under the Credit Agreement after deducting therefrom all expenses (including, to the extent permitted by applicable law, reasonable
attorneys’ fees) incurred in connection with the aforesaid operations and all amounts necessary to pay the Taxes, Other Charges, insurance and other expenses in connection with the Premises, as well as just and reasonable compensation for the
services of Grantee, its counsel, agents and employees; provided, that the foregoing shall not be deemed a waiver of the provisions of this Deed to Secure Debt prohibiting the sale or other disposition of the Premises without Grantee’s prior
written consent; 
 (i) exercise any and all rights and remedies granted to a secured party upon default under the Uniform Commercial Code,
including, without limiting the generality of the foregoing: (i) the right to take possession of the Fixtures, the Equipment and the Personal Property, or any part thereof, and to take 

  
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such other measures as Grantee may deem necessary for the care, protection and preservation of the Fixtures, the Equipment and the Personal Property, and (ii) request Grantor at its expense
to assemble the Fixtures, the Equipment and the Personal Property and make the same available to Grantee at a convenient place acceptable to Grantee. Any notice of sale, disposition or other intended action by Grantee with respect to the Fixtures,
the Equipment and/or the Personal Property sent to Grantor in accordance with the provisions hereof at least ten (10) Business Days prior to such action, or as may be sooner required under applicable law, shall constitute commercially
reasonable notice to Grantor; 
 (j) apply any sums then deposited or held in escrow or otherwise by or on behalf of Grantee in accordance
with the terms of the Credit Agreement and this Deed to Secure Debt; 
 (k) take such steps to protect and enforce its rights in aid of the
execution of any power herein granted, or for any foreclosure hereunder, or for the enforcement of any other appropriate legal or equitable remedy or otherwise as Grantee shall elect; 

(l) exercise any or all of the remedies available to it under this Deed to Secure Debt and the Loan Documents; or 

(m) pursue such other remedies as Grantee may have under applicable law. 

No remedy herein conferred upon or reserved to Grantee is intended to be exclusive of any other remedy, but every remedy herein provided shall be cumulative,
and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity, or by statute; and every power and remedy given by this Deed to Secure Debt to Grantee may be exercised from time to time and as often
as may be deemed expedient. No delay or omission by Grantee to exercise any right or power during the continuation of any Event of Default shall impair any such right or power or shall be construed to be a waiver of any event of default or an
acquiescence therein. If Grantee shall have proceeded to enforce any right under this Deed to Secure Debt by foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned, or shall have been determined adversely,
then, and in such and every such case, Grantor shall be restored to its former positions and rights hereunder in respect of the Premises, and all rights, remedies and powers of Grantee shall continue as though no such proceedings had been taken. If
any additional sum or sums shall become due and owing, by Grantor to Grantee, pursuant to the provisions hereof, the affidavit of Grantee shall be sufficient evidence of the fact that such additional sums are secured hereby in the amount set forth
in such affidavit. No waiver of any breach or default hereunder shall constitute or be construed as a waiver by Grantee of any subsequent breach or default or of any breach or default of any other provisions of this Deed to Secure Debt. Any waiver
by Grantee must be in writing and will not be construed as a continuing waiver. Without limiting the generality of the foregoing, any payment made by Grantee for insurance premiums, taxes, assessments, water rates, sewer rentals, levies, fees or any
other charges affecting the Premises, shall not constitute a waiver of Grantor’s default in making such payments and shall not obligate Grantee to make any further payments. 

In the event of a sale, by foreclosure, power of sale or otherwise, of less than all of Premises, this Deed to Secure Debt shall continue as a lien and
security interest on the remaining portion of the Premises unimpaired and without loss of priority. 
 Section 8.3
APPLICATION OF PROCEEDS. The purchase money, proceeds and avails of any disposition of the Premises, and or any part thereof, or any other sums collected by Grantee
pursuant to the Credit Agreement, this Deed to Secure Debt or any other document or instrument executed in connection therewith shall be applied by Grantee to the payment of the Obligations in such priority and proportions as provided in the Credit
Agreement. Grantee and any receiver of the Premises or any part thereof shall be liable to account for only those Rents actually received by it. 

  
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 Section 8.4
RIGHT TO CURE DEFAULTS. During the continuation of any Event of Default or if Grantor fails to make any payment or to do any act as herein provided,
Grantee may, but without any obligation to do so and without notice to or demand on Grantor and without releasing Grantor from any obligation hereunder, make or do the same in such manner and to such extent as Grantee may deem necessary to protect
the security hereof. Grantee is authorized to enter upon the Premises for such purposes, or appear in, defend, or bring any action or proceeding to protect its interest in the Premises or to foreclose this Deed to Secure Debt or collect the Rents,
and the cost and expense thereof (including, to the extent permitted by applicable law, reasonable attorneys’ fees to the extent permitted by law), with interest as provided in this Section 8.4, shall constitute a portion of the
Obligations and shall be due and payable to Grantee upon demand. All such costs and expenses incurred by Grantee in remedying such failure to act or such failed payment or in appearing in, defending, or bringing any such action or proceeding shall
bear interest at the Default Rate, for the period after notice from Grantee that such cost or expense was incurred to the date of payment to Grantee. All such costs and expenses incurred by Grantee together with interest thereon calculated at the
Default Rate shall be deemed to constitute a portion of the Obligations and be secured by this Deed to Secure Debt and the other Security Documents and shall be immediately due and payable upon demand by Grantee therefor. 

Section 8.5 ACTIONS AND PROCEEDINGS. Grantee has the right
to appear in and defend any action or proceeding brought with respect to the Premises and to bring any action or proceeding, in the name and on behalf of Grantor, which Grantee, in its discretion, decides should be brought to protect its interest in
the Premises or its rights hereunder. All such costs and expenses incurred by Grantee in connection with such actions or proceedings, including, without limitation, reasonable attorneys’ fees and expenses and appellate attorneys’ fees and
expenses and otherwise provided for in the Loan Documents, shall be paid by Grantor on demand and shall be secured by this Deed to Secure Debt. 

Section 8.6
RECOVERY OF SUMS REQUIRED TO BE PAID. Grantee shall have the right from time to time to take
action to recover any sum or sums which constitute a part of the Obligations as the same become due, without regard to whether or not the balance of the Obligations shall be due, and without prejudice to the right of Grantee thereafter to bring an
action of foreclosure, or any other action, for a default or defaults by Grantor existing at the time such earlier action was commenced. In the event of a sale of the Premises, or any part thereof, and of the application of the proceeds of sale, as
in this Deed to Secure Debt provided, to the payment of the debt hereby secured, Grantee shall be entitled to enforce payment of, and to receive all amounts then remaining due and unpaid upon, the Obligations, and to enforce payment of all other
charges, payments and costs due under this Deed to Secure Debt, and shall be entitled to recover judgment for any portion of the debt remaining unpaid, with interest at the applicable Default Rate under the Credit Agreement or supplemental Loan
Documents. In case of the commencement of any case against the Grantor under any applicable bankruptcy, insolvency, or other similar law now or hereafter in effect or any proceedings for its reorganization or involving the liquidation of its assets,
Grantee shall be entitled to prove the whole amount of principal and interest due under the Credit Agreement to the full amount thereof, and all other payments, charges and costs due under this Deed to Secure Debt and otherwise provided for in the
Credit Agreement, without deducting therefrom any proceeds obtained from the sale of the whole or any part of the Premises, provided, however, that in no case shall Grantee receive a greater amount than such principal and interest and such other
payments, charges and costs from the aggregate amount of the proceeds of the sale of the Premises and the distribution from the estate of Grantor. 

Section 8.7
EXAMINATION OF BOOKS AND RECORDS. Grantee, its agents, accountants and attorneys shall have the right to examine the records, books,
and other papers of Grantor which reflect upon its financial condition, at the Premises or at any office regularly maintained by Grantor where the books and records are located in the manner and to the extent permitted under Section 7.5
of the Credit Agreement. This Section 8.7 shall apply until this Deed to Secure Debt shall be terminated pursuant to the terms of the Credit Agreement and without regard to whether an Event of Default is continuing. 

  
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 Section 8.8 OTHER RIGHTS, ETC.
(a) The failure of Grantee to insist upon strict performance of any term hereof shall not be deemed to be a waiver of any term of this Deed to Secure Debt. Grantor shall not be relieved of Grantor’s obligations hereunder by reason of
(i) the failure of Grantee to comply with any request of Grantor or any guarantor or indemnitor with respect to the foreclosure of this Deed to Secure Debt or enforcement of any of the provisions hereof or of the Credit Agreement or the other
documents and instruments executed in connection therewith, (ii) the release, regardless of consideration, of the whole or any part of the Premises, or of any person liable for the Obligations or any portion thereof, or (iii) any agreement
or stipulation by Grantee extending the time of payment or otherwise modifying or supplementing the terms of the Credit Agreement, this Deed to Secure Debt or the other documents and instruments executed in connection therewith. 

(b) It is agreed that the risk of loss or damage to the Premises is on Grantor, and Grantee shall have no liability whatsoever for decline in
value of the Premises, for failure to maintain any policies of insurance, or for failure to determine whether insurance in force is adequate as to the amount or risks insured. Possession by Grantee shall not be deemed an election of judicial relief,
if any such possession is requested or obtained, with respect to any Premises or collateral not in Grantee’s possession. 
 (c) Grantee
may resort for the payment of the Obligations to any other Collateral held by Grantee in such order and manner as Grantee, in its discretion, may elect. Grantee may take action to recover the Obligations, or any portion thereof, or to enforce any
covenant hereof without prejudice to the right of Grantee thereafter to foreclose this Deed to Secure Debt. The rights of Grantee under this Deed to Secure Debt shall be separate, distinct and cumulative and none shall be given effect to the
exclusion of the others. No act of Grantee shall be construed as an election to proceed under any one provision herein to the exclusion of any other provision. Grantee shall not be limited exclusively to the rights and remedies herein stated but
shall be entitled to every right and remedy now or hereafter afforded at law or in equity. 
 (d) All rights of action under the Loan
Documents and this Deed to Secure Debt may be enforced by Grantee without the possession of the Loan Documents and without the production thereof at any trial or other proceeding relative thereto. 

(e) Upon the occurrence of any Event of Default and the acceleration of the maturity hereof, if, at any time prior to foreclosure sale,
Grantor or any other person tenders payment of the amount necessary to satisfy the Obligations, the same shall constitute an evasion of the payment terms hereof and/or of the Credit Agreement and shall be deemed to be a voluntary prepayment
hereunder, in which case such payment must include the premium and/or fee required under the prepayment provision, if any, contained herein or in the Credit Agreement. This provision shall be of no force or effect if at the time that such tender of
payment is made, Grantor has the right under this Deed to Secure Debt or the Credit Agreement to prepay the Obligations without penalty or premium. 

(f) If any payment due hereunder, or under the Loan Documents, is not paid when due, whether on any stated due date, any accelerated due date
or any other date or at any other time specified under any of the terms hereof or thereof, then, and in such event, Grantor shall pay interest on the entire outstanding and unpaid principal balance of the Obligations in accordance with
Section 3.1 of the Credit Agreement. All unpaid and accrued interest shall be secured by this Deed to Secure Debt as a part of the Obligations. Nothing in this Section 8.8 or in any other provision of this Deed to Secure Debt
shall constitute an extension of the time of payment of the Obligations. Notwithstanding the appointment of any receiver, liquidator or trustee of Grantor, or of any of its property, or of the Premises or any part


  
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thereof, Grantee shall be entitled, to the extent not prohibited by law, to retain possession and control of all property now and hereafter covered by this Deed to Secure Debt to Grantee in
accordance with the terms hereof and applicable law. 
 (g) In the event of any sale made under or by virtue of this 14.6 (whether made by
virtue of judicial proceedings or of a judgment or decree of foreclosure and sale), the entire Obligations, if not previously due and payable, immediately thereupon shall, anything in the Loan Documents or in this Deed to Secure Debt to the contrary
notwithstanding, become due and payable. 
 Section 8.9
RIGHT TO RELEASE ANY PORTION OF THE PREMISES. Grantee may release any
portion of the Premises for such consideration as Grantee may require without, as to the remainder of the Premises, in any way impairing or affecting the lien or priority of this Deed to Secure Debt, or improving the position of any subordinate
lienholder with respect thereto, except to the extent that the obligations hereunder shall have been reduced by the actual monetary consideration, if any, received by Grantee for such release, and may accept by assignment, pledge or otherwise any
other property in place thereof as Grantee may require without being accountable for so doing to any other lienholder. This Deed to Secure Debt shall continue as a lien and security interest in the remaining portion of the Premises. 

Section 8.10 VIOLATION OF LAWS. If the Premises is not in
full compliance with all requirements of applicable law, Grantee may impose additional reasonable requirements upon Grantor in connection herewith including, without limitation, monetary reserves or financial equivalents. 

Section 8.11 RIGHT OF ENTRY. Upon reasonable notice to
Grantor, Grantee and its agents shall have the right to enter and inspect the Premises at all reasonable times. 
 Article 9 –
INDEMNIFICATION 
 Section 9.1 GENERAL INDEMNIFICATION. Grantor shall, at its
sole cost and expense, protect, defend, indemnify, release and hold harmless the Indemnified Parties from and against any and all claims, suits, liabilities (including, without limitation, strict liabilities), actions, proceedings, obligations,
debts, damages, losses, costs, expenses, diminutions in value, fines, penalties, charges, fees, expenses, judgments, awards, amounts paid in settlement, punitive damages, foreseeable and unforeseeable consequential damages, of whatever kind or
nature (including but not limited to, to the extent permitted by applicable law, reasonable attorneys’ fees and other costs of defense) (collectively, the “Losses”) imposed upon or incurred by or asserted against any
Indemnified Parties and directly or indirectly arising out of or in any way relating to any one or more of the following: (a) ownership of this Deed to Secure Debt, the Premises or any interest therein or receipt of any Rents; (b) any
amendment to, or restructuring of, the Obligations, the Loan Documents, the Credit Agreement, this Deed to Secure Debt, or any other document or instrument executed in connection therewith; (c) any and all lawful action that may be taken by
Grantee in connection with the enforcement of the provisions of this Deed to Secure Debt, the Loan Documents, the Credit Agreement or any of the other documents or instruments executed in connection therewith, whether or not suit is filed in
connection with same, or in connection with Grantor, any guarantor or indemnitor and/or any partner, joint venturer or shareholder thereof becoming a party to a voluntary or involuntary federal or state bankruptcy, insolvency or similar proceeding;
(d) any accident, injury to or death of persons or loss of or damage to property occurring in, on or about the Premises or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways;
(e) any use, nonuse or condition in, on or about the Premises or any part thereof or on the adjoining sidewalks, curbs, adjacent property or adjacent parking areas, streets or ways; (f) any failure on the part of Grantor to perform or be
in compliance with any of the terms of this Deed to Secure Debt, the Credit Agreement or any Loan Documents; (g) performance of any labor or services or the furnishing of 

  
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any materials or other property in respect of the Premises or any part thereof; (h) the failure of any Person to file timely with the Internal Revenue Service an accurate Form 1099-B,
Statement for Recipients of Proceeds from Real Estate, Broker and Barter Exchange Transactions, which may be required in connection with this Deed to Secure Debt, or to supply a copy thereof in a timely fashion to the recipient of the proceeds of
the transaction in connection with which this Deed to Secure Debt is made; (i) any failure of the Premises to be in compliance with any requirements of applicable law; (j) the enforcement by any Indemnified Party of the provisions of this
Article 9; (k) any and all claims and demands whatsoever which may be asserted against any Indemnified Party by reason of any alleged obligations or undertakings on its part to perform or discharge any of the terms, covenants, or
agreements contained in any Lease; (1) the payment of any commission, charge or brokerage fee to anyone claiming through Grantor which may be payable in connection with the Premises or the Obligations; or (m) any misrepresentation made by
Grantor in this Deed to Secure Debt, the Loan Documents, the Credit Agreement or any document or instrument executed in connection therewith. Any amounts payable to Grantee by reason of the application of this Section 9.1 shall become
immediately due and payable and shall bear interest at the Default Rate provided in the Credit Agreement from the date loss or damage is sustained by Grantee until paid. For purposes of this Article 9, the term “Indemnified
Parties” means Grantee, the Secured Parties under and as defined in the Credit Agreement and any Person who is or will have been involved in the origination of any of the Obligations, any Person who is or will have been involved in the
assignment, syndication or servicing of any of the Obligations, any Person in whose name the encumbrance created by this Deed to Secure Debt is or will have been recorded, Persons and entities who may hold or acquire or will have held a full or
partial interest in any of the Obligations (including, but not limited to, investors or prospective investors in any securities, as well as custodians, trustees and other fiduciaries who hold or have held a full or partial interest in the
Obligations secured hereby for the benefit of third parties) as well as the respective directors, officers, shareholders, partners, employees, agents, servants, representatives, contractors, subcontractors, affiliates, subsidiaries, participants,
successors and assigns of any and all of the foregoing (including but not limited to any other Person who holds or acquires or will have held a participation or other full or partial interest in any of the Obligations, whether during the term of the
Obligations or as a part of or following a foreclosure of this Deed to Secure Debt and including, but not limited to, any successors by merger, consolidation or acquisition of all or a substantial portion of Grantee’s assets and business). 

Section 9.2 DEED TO SECURE
DEBT AND/OR INTANGIBLE TAX. Grantor shall, at its sole cost and expense, protect, defend, indemnify, release and hold harmless the
Indemnified Parties from and against any and all Losses imposed upon or incurred by or asserted against any Indemnified Parties and directly or indirectly arising out of or in any way relating to any tax on the making and/or recording of this Deed
to Secure Debt, or any of the other documents and instruments executed in connection therewith, but excluding any income, franchise or other similar taxes. 

Section 9.3
DUTY TO DEFEND; ATTORNEYS’ FEES AND OTHER FEES AND 
EXPENSES. Upon written request by any Indemnified Party, Grantor shall defend such Indemnified Party (if requested by any Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals
approved by such Indemnified Party, in the reasonable discretion of such Indemnified Party. Notwithstanding the foregoing, if the defendants in any such claim or proceeding include both Grantor and any Indemnified Party and Grantor and such
Indemnified Party shall have reasonably concluded that there are any legal defenses available to it and/or other Indemnified Parties that are different from or additional to those available to Grantor, such Indemnified Party shall have the right to
select separate counsel to assert such legal defenses and to otherwise participate in the defense of such action on behalf of such Indemnified Party, provided that no compromise or settlement shall be entered without the consent of Grantor, which
consent shall not be unreasonably withheld. Upon demand, Grantor shall pay or, in the sole and absolute discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment of, to the extent permitted by applicable law,
reasonable fees and disbursements of attorneys, 

  
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engineers, environmental consultants, laboratories and other professionals in connection therewith. If any action or proceeding is commenced to which action or proceeding Grantee is made a party
or is a party-in-interest (including, but not limited to, any bankruptcy proceeding, lien foreclosure action or other action affecting the title or encumbrances upon the Premises, whether or not commenced or initiated by Grantor), or in which it
becomes necessary to defend or uphold the lien of this Deed to Secure Debt, Grantor shall, on demand, reimburse Grantee for all expenses (including, without limitation, reasonable attorneys’ fees and disbursements and reasonable appellate
attorneys’ fees and disbursements) incurred by Grantee in any such action or proceeding in the manner set forth in, and in accordance with the terms of Section 10.3 of the Credit Agreement, and all such expenses shall be secured
hereby. In any action or proceeding to foreclose this Deed to Secure Debt or to recover or collect the Obligations, the provisions of law relating to the recovering of costs, disbursements and allowances shall prevail unaffected by this covenant.

 Article 10 - WAIVERS 

Section 10.1 WAIVER OF STATUTORY RIGHTS.
Notwithstanding anything herein contained to the contrary, Grantor: (i) HEREBY WAIVES TRIAL BY JURY in any action, suit or counterclaim arising in connection with, out of or otherwise relating to the Loan Documents, this Deed to Secure Debt or
any other document or instrument now or hereafter executed and delivered in connection therewith or the Obligations secured by this Deed to Secure Debt, whether now existing or hereafter arising, and whether sounding in contract, tort or otherwise;
and (ii) hereby agrees and consents that any such claim or cause of action SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, and that Grantee may file an original counterpart or a copy of this Section 10.1 with any court as written
evidence of THE CONSENT OF GRANTOR TO THE WAIVER OF THEIR RIGHTS TO TRIAL BY JURY. 
 Section 10.2
WAIVER OF COUNTERCLAIM. Grantor acknowledges that Grantor’s obligation to pay the Obligations in accordance with the provisions of the Loan Documents and this Deed to
Secure Debt is and shall at all times continue to be absolute and unconditional in all respects, and shall at all times be valid and enforceable irrespective of any other agreements or circumstances of any nature whatsoever which might otherwise
constitute a defense to the Loan Documents, this Deed to Secure Debt or the obligation of Grantor thereunder to pay the Obligations or the Obligations of any other person relating to the Loan Documents or this Deed to Secure Debt, or the Obligations
of Grantor under the Loan Documents or this Deed to Secure Debt, or otherwise with respect to the Obligations secured hereby. Grantor absolutely, unconditionally and irrevocably waives any and all right to assert any defense, setoff, counterclaim or
cross claim of any nature whatsoever with respect to the obligation of Grantor to pay the Obligations in accordance with the provisions of the Loan Documents and this Deed to Secure Debt, or Obligations of Grantor under the Loan Documents or this
Deed to Secure Debt, or otherwise with respect to the Obligations secured hereby, or in any action or proceeding brought by Grantee to collect the Obligations, or any portion thereof, or to enforce, foreclose and realize upon the lien and security
interest created by this Deed to Secure Debt or any other document or instrument securing repayment of the Obligations, in whole or in part. 

Section 10.3
MARSHALLING AND OTHER MATTERS. To the extent permitted by applicable law, Grantor hereby waives the benefit of all appraisement, valuation, stay,
extension, reinstatement and redemption laws now or hereafter in force and all rights of marshalling in the event of any sale hereunder of the Premises or any part thereof or any interest therein. Further, Grantor hereby expressly waives any and all
rights of redemption from sale under any order or decree of foreclosure of this Deed to Secure Debt on behalf of Grantor, and on behalf of each and every person acquiring any interest in or title to the Premises subsequent to the date of this Deed
to Secure Debt and on behalf of all Persons to the extent permitted by applicable law. Grantor acknowledges that this Deed to Secure Debt is one of a number of 

  
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other security instruments and documents which secure and evidence the Obligations in whole or in part, including, without limitation, the Loan Documents. The lien of this Deed to Secure Debt
shall be absolute and unconditional and shall not in any manner be affected or impaired by any acts or omissions whatsoever of Grantee and, without limiting the generality of the foregoing, the lien hereof shall not be impaired by (i) any
acceptance by Grantee of any other security for any portion of the Obligations, (ii) any failure, neglect or omission on the part of Grantee to realize upon or protect any portion of the Obligations or any Collateral therefor or (iii) any
release (except as to the property released), sale, pledge, surrender, compromise, settlement, renewal, extension, indulgence, alteration, changing, modification or disposition of any portion of the Obligations or of any of the Collateral therefor.
In connection with the foregoing, without affecting the lien of this Deed to Secure Debt, Grantee may at any time and from time to time, either before or after expiration of the Term and without notice or consent (m) release any person liable
for payment or performance of any obligation or Obligations secured by this Deed to Secure Debt or any Loan Documents; (n) make any agreement extending the time or otherwise altering the terms of payment of all or any part of the Obligations,
or waiving any Obligations, or subordinating, modifying or otherwise dealing with the lien or charge hereof; (o) exercise or refrain from exercising or waive any right Grantee may have under this Deed to Secure Debt or any other Loan Documents;
(p) accept additional security of any kind; or (q) release or otherwise deal with any property, real or personal, securing the Obligations, including all or any part of the Premises or any other collateral under the Loan Documents. Grantee
may, at its discretion, foreclose, exercise any power of sale or exercise any other remedy available to Grantee under any or all of the Loan Documents without first exercising or enforcing any of its remedies under this Deed to Secure Debt, or may
foreclose, exercise any power of sale, or exercise any other right available under this Deed to Secure Debt without first exercising or enforcing any of its rights and remedies under any or all of the Loan Documents. Such exercise of Grantee’s
rights and remedies under any or all of the Loan Documents shall not in any manner impair the Obligations or lien of the Deed to Secure Debt, and any exercise of the rights or remedies of Grantee hereunder shall not impair the lien of any of the
Loan Documents or any of Grantee’s rights and remedies thereunder. Grantor specifically consents and agrees that Grantee may exercise its rights and remedies hereunder and under the Loan Documents separately or concurrently and in any order
that Grantee may deem appropriate. 
 Section 10.4
WAIVER OF NOTICE. To the extent permitted by applicable law, Grantor shall not be entitled to any notices of any nature whatsoever from Grantee except with respect to
matters for which this Deed to Secure Debt or other Loan Documents specifically and expressly provide for the giving of notice by Grantee to Grantor and except with respect to matters for which Grantee is required by applicable law to give notice,
and Grantor hereby expressly waives the right to receive any notice from Grantee with respect to any matter for which this Deed to Secure Debt or other Loan Documents does not specifically and expressly provide for the giving of notice by Grantee to
Grantor. 
 Section 10.5
WAIVER OF STATUTE OF LIMITATIONS. To the extent permitted by applicable law, Grantor hereby expressly waives and releases to the
fullest extent permitted by law, the pleading of any statute of limitations as a defense to payment of the Obligations or the Other Obligations. 

Article 11 - NOTICES 
 All
notices, consents, approvals and requests required or permitted hereunder shall be in writing, and shall be sent, and shall be deemed effective, as provided in the Credit Agreement. 

Article 12 - APPLICABLE LAW 

Section 12.1 GOVERNING LAW. (A) THIS DEED TO SECURE DEBT WAS NEGOTIATED IN THE STATE OF NEW YORK, AND MADE BY GRANTOR
AND 

  
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ACCEPTED BY GRANTEE IN THE STATE OF NEW YORK, AND THE PROCEEDS OF THE OBLIGATIONS SECURED HEREBY WERE DISBURSED FROM THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL
RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY, AND IN ALL RESPECTS, INCLUDING, WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS DEED TO SECURE DEBT AND THE
OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE (WITHOUT REGARD TO PRINCIPLES OF CONFLICT LAWS) AND ANY APPLICABLE LAW
OF THE UNITED STATES OF AMERICA, EXCEPT THAT AT ALL TIMES THE PROVISIONS FOR THE CREATION, PERFECTION, AND ENFORCEMENT OF THE LIENS AND SECURITY INTERESTS CREATED PURSUANT HERETO AND PURSUANT TO ANY OTHER LOAN DOCUMENT WITH RESPECT TO THE PROPERTY
SHALL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAW OF THE STATE IN WHICH THE PROPERTY IS LOCATED, IT BEING UNDERSTOOD THAT, TO THE FULLEST EXTENT PERMITTED BY THE LAW OF SUCH STATE, THE LAW OF THE STATE OF NEW YORK SHALL GOVERN THE
CONSTRUCTION, VALIDITY AND ENFORCEABILITY OF THIS DEED TO SECURE DEBT AND THE CREDIT AGREEMENT AND ALL OF THE OBLIGATIONS ARISING HEREUNDER OR THEREUNDER. TO THE FULLEST EXTENT PERMITTED BY LAW, GRANTOR HEREBY UNCONDITIONALLY AND IRREVOCABLY WAIVES
ANY CLAIM TO ASSERT THAT THE LAW OF ANY OTHER JURISDICTION GOVERNS THIS DEED TO SECURE DEBT, OR THE OTHER LOAN DOCUMENTS, AND THIS DEED TO SECURE DEBT AND THE CREDIT AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK PURSUANT TO SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 
 (B) ANY LEGAL SUIT, ACTION OR PROCEEDING
AGAINST GRANTEE OR GRANTOR ARISING OUT OF OR RELATING TO THIS DEED TO SECURE DEBT MAY AT GRANTEE’S OPTION BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN THE CITY OF NEW YORK, COUNTY OF NEW YORK, PURSUANT TO SECTION 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, AND GRANTOR WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR PROCEEDING, AND GRANTOR HEREBY IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH
COURT IN ANY SUIT, ACTION OR PROCEEDING. GRANTOR DOES HEREBY DESIGNATE AND APPOINT: 
 [TO BE PROVIDED] 

AS ITS AUTHORIZED AGENT TO ACCEPT AND ACKNOWLEDGE ON ITS BEHALF SERVICE OF ANY AND ALL PROCESS WHICH MAY BE SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING
IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK, AND AGREES THAT SERVICE OF PROCESS UPON SAID AGENT AT SAID ADDRESS AND WRITTEN NOTICE OF SAID SERVICE MAILED OR DELIVERED TO GRANTOR IN THE MANNER PROVIDED HEREIN SHALL BE DEEMED IN EVERY RESPECT
EFFECTIVE SERVICE OF PROCESS UPON GRANTOR IN ANY SUCH SUIT, ACTION OR PROCEEDING IN THE STATE OF NEW YORK. GRANTOR (I) SHALL GIVE PROMPT NOTICE TO GRANTEE OF ANY CHANGED ADDRESS OF ITS AUTHORIZED AGENT HEREUNDER, (II) MAY AT ANY TIME AND FROM
TIME TO TIME DESIGNATE A 

  
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SUBSTITUTE AUTHORIZED AGENT WITH AN OFFICE IN NEW YORK, NEW YORK (WHICH SUBSTITUTE AGENT AND OFFICE SHALL BE DESIGNATED AS THE PERSON AND ADDRESS FOR SERVICE OF PROCESS), AND (III) SHALL PROMPTLY
DESIGNATE SUCH A SUBSTITUTE IF ITS AUTHORIZED AGENT CEASES TO HAVE AN OFFICE IN NEW YORK, NEW YORK OR IS DISSOLVED WITHOUT LEAVING A SUCCESSOR. 

Section 12.2 USURY LAWS. Nothing in this Deed to Secure Debt or in any other
agreement between Grantor and Grantee shall require Grantor to pay, or Grantee to accept, interest in an amount which would render this Deed to Secure Debt usurious or unenforceable, in whole or in part or which would subject Grantee to any penalty
or forfeiture under applicable law. In the event that the payment of any charges, fees or other sums due hereunder or any such other agreement which are or could be held to be in the nature of interest and which would subject Grantee to any penalty
or forfeiture under applicable law, then ipso facto the Obligations of Grantor to make such payment shall be reduced to the highest rate authorized under applicable law. Should Grantee receive any payment which is or would be in excess
of the highest rate authorized under law, such payment shall have been, and shall be deemed to have been, made in error and shall automatically be held by Grantee as additional cash collateral for the Obligations. 

Section 12.3
PROVISIONS SUBJECT TO APPLICABLE LAW. All rights, powers and remedies provided in this Deed to Secure Debt may be exercised only to
the extent that the exercise thereof does not violate any applicable provisions of law and are intended to be limited to the extent necessary so that they will not render this Deed to Secure Debt invalid, unenforceable or not entitled to be
recorded, registered or filed under the provisions of any applicable law. If any term of this Deed to Secure Debt or any application thereof shall be invalid or unenforceable, the remainder of this Deed to Secure Debt and any other application of
the term shall not be affected thereby. 
 Article 13 - DEFINITIONS 

Unless the context clearly indicates a contrary intent or unless otherwise specifically provided herein, words used in this Deed to Secure
Debt may be used interchangeably in singular or plural form and the word “Grantor” shall mean “Grantor herein named and any subsequent owner or owners of the Premises or any part thereof or any interest therein, and
their respective heirs, executors, legal representatives, successor and assigns,” the word “Grantee” shall mean “Grantee and any subsequent assignee under the Credit Agreement,” the word “Credit
Agreement” shall mean “the Credit Agreement and any other evidence of the Obligations secured by this Deed to Secure Debt,” the word “Premises” shall include any portion of the Premises and any interest
therein, and the phrases “attorneys’ fees”, “legal fees” and “counsel fees” shall include, to the extent permitted by applicable law, any and all attorneys’,
paralegal and law clerk fees and disbursements, including, but not limited to, fees and disbursements at the pre-trial, trial and appellate levels incurred or paid by Grantee in protecting its interest in the Premises, the Leases and the Rents and
enforcing its rights hereunder. If there is more than one Grantor, all their undertakings hereunder shall be deemed joint and several. All references in this Deed to Secure Debt to the lien hereof shall be deemed to refer to the security title
hereby conveyed and all security interest and liens created hereby. 
 Article 14 - MISCELLANEOUS PROVISIONS 

Section 14.1 NO ORAL CHANGE. This Deed to Secure Debt, and
any provisions hereof, may not be modified, amended, waived, extended, changed, discharged or terminated orally or by any act or failure to act on the part of Grantor or Grantee, but only by an agreement in writing signed by the party against whom
enforcement of any modification, amendment, waiver, extension, change, discharge or termination is sought. Grantor acknowledges that the Loan Documents executed and delivered in 

  
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connection therewith or otherwise in connection with the Obligations secured hereby set forth the entire agreement and understanding of Grantor and Grantee with respect to the Obligations secured
hereby and that no oral or other agreements, understandings, representations or warranties exist with respect to the Obligations secured hereby other than those set forth in the the Loan Documents. 

Section 14.2 SUCCESSORS AND ASSIGNS. This Deed to Secure Debt
runs with the land, and shall be binding upon and inure to the benefit of Grantor and Grantee and their respective successors and assigns forever. 

Section 14.3 INAPPLICABLE PROVISIONS. If any term, covenant or condition of the
Credit Agreement or this Deed to Secure Debt is held to be invalid, illegal or unenforceable in any respect, the Credit Agreement and this Deed to Secure Debt shall be construed without such provision. 

Section 14.4 HEADINGS, ETC. The headings and captions of various Sections of this Deed to
Secure Debt are for convenience of reference only and are not to be construed as defining or limiting, in any way, the scope or intent of the provisions hereof. 

Section 14.5 NUMBER AND GENDER. Whenever the context may
require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of nouns and pronouns shall include the plural and vice versa. 

Section 14.6 SUBROGATION. If any or all of the proceeds of the Obligations have been used to
extinguish, extend or renew any indebtedness heretofore secured by the Premises, then, to the extent of the funds so used, Grantee shall be subrogated to all of the rights, claims, liens, titles, and interests existing against the Premises
heretofore held by, or in favor of, the holder of such indebtedness and such former rights, claims, liens, titles, and interests, if any, are not waived but rather are continued in full force and effect in favor of Grantee and are merged with the
lien and security interest created herein as cumulative security for the repayment of the Obligations, the performance and discharge of Grantor’s obligations hereunder and under the Credit Agreement and the performance and discharge of the
Other Obligations. 
 Section 14.7 LIMITATION ON GRANTEE’S
RESPONSIBILITY. No provision of this Deed to Secure Debt shall operate to place any obligation or liability for the control, care, management or repair of the Premises upon Grantee, nor shall it operate to make
Grantee responsible or liable for any waste committed on the Premises by the tenants or any other Person, or for any dangerous or defective condition of the Premises, or for any negligence in the management, upkeep, repair or control of the Premises
resulting in loss or injury or death to any tenant, licensee, employee or stranger. Nothing herein contained shall be construed as constituting Grantee a “mortgagee in possession.” 

Section 14.8 OTHER MORTGAGES; NO ELECTION OF
REMEDIES. 
 (a) The Obligations is now or may hereafter be secured by one or more other deeds to secure debt, mortgages,
deeds of trust and other security agreements (collectively, as the same may be amended and in effect from time to time, are herein collectively called the “Other Mortgages”), which cover or will hereafter cover other
properties that are or may be located in various states (the “Other Collateral”). The Other Mortgages will secure the payment and performance of the Obligations. During the continuation of any Event of Default, Grantee may
proceed under this Deed to Secure Debt and/or any or all of the Other Mortgages against either the Premises and/or any or all of the Other Collateral in one or more parcels and in such manner and order as Grantee shall elect. Grantor hereby
irrevocably waives and releases, to the extent permitted by law, and whether now or hereafter in force, any right to have the Premises and/or the Other Collateral marshaled upon any foreclosure of this Deed to Secure Debt or any Other Mortgages.


  
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 (b) Without limiting the generality of the foregoing, and without limitation as to any other
right or remedy provided to Grantee in this Deed to Secure Debt, the Other Mortgages or the Credit Agreement, during the continuation of any Event of Default, (i) Grantee shall have the right to pursue all of its rights and remedies under this
Deed to Secure Debt, the Other Mortgages or the Credit Agreement, at law and/or in equity, in one proceeding, or separately and independently in separate proceedings from time to time, as Grantee, in its sole and absolute discretion, shall determine
from time to time, (ii) Grantee shall not be required to either marshall assets, sell the Premises and/or any Other Collateral in any particular order of alienation (and may sell the same simultaneously and together or separately), or be
subject to any “one action” or “election of remedies” law or rule with respect to the Premises and/or any Other Collateral, (iii) the exercise by Grantee of any remedies against any one item of Premises and/or any Other
Collateral will not impede Grantee from subsequently or simultaneously exercising remedies against any other item of Premises and/or Other Collateral, (iv) all liens and other rights, remedies or privileges provided to Grantee herein shall
remain in full force and effect until Grantee has exhausted all of its remedies against the Premises and all Premises has been foreclosed, sold and/or otherwise realized upon in satisfaction of the Obligations, and (v) Grantee may resort for
the payment of the Obligations to any security held by Grantee in such order and manner as Grantee, in its discretion, may elect and Grantee may take action to recover the Obligations, or any portion thereof, or to enforce any covenant hereof
without prejudice to the right of Grantee thereafter to foreclose this Deed to Secure Debt. 
 (c) Without notice to or consent of Grantor
and without impairment of the lien and rights created by this Deed to Secure Debt, Grantee may, at any time (in its sole and absolute discretion, but Grantee shall have no obligation to), execute and deliver to Grantor a written instrument releasing
all or a portion of the lien of this Deed to Secure Debt as security for any or all of the obligations of Grantor now existing or hereafter arising under or in respect of the Obligations, whereupon following the execution and delivery by Grantee to
Grantor of any such written instrument of release, this Deed to Secure Debt shall no longer secure such obligations of Grantor so released. 

Section 14.9 VARIABLE INTEREST RATE. If applicable, under the terms
and provisions of the Loan Documents, the interest rate payable thereunder may be variable. THE PURPOSE OF THIS PARAGRAPH IS TO PROVIDE RECORD NOTICE OF THE RIGHT OF GRANTEE, ITS SUCCESSORS AND ASSIGNS, TO INCREASE OR DECREASE THE INTEREST RATE ON
ANY OF THE OBLIGATIONS WHERE THE TERMS AND PROVISIONS OF THE CREDIT AGREEMENT OR SUPPLEMENTAL LOAN DOCUMENTS PROVIDE FOR A VARIABLE INTEREST RATE. 

Section 14.10 CREDIT AGREEMENT PARAMOUNT. If and to the extent that
any of the provisions of this Deed to Secure Debt conflict or are otherwise inconsistent with any provisions of the Credit Agreement, the provisions of the Credit Agreement, shall prevail. 

Section 14.11 LIEN PRIORITY. Any agreement hereafter made by Grantor and Grantee
pursuant to this Deed to Secure Debt shall be superior to the rights of the holder of any intervening lien or encumbrance to the extent allowed by law and other than the Permitted Liens. 

Section 14.12 MAXIMUM PRINCIPAL AMOUNT. Notwithstanding any provision
set forth herein to the contrary, in addition to the amount of principal indebtedness secured by this Deed to Secure Debt plus all interest payable thereon, this Deed to Secure Debt shall also secure all amounts expended by Grantee after default
hereunder by Grantor as follows: (1) for the payment of taxes, charges or assessments which may be imposed by legal requirements upon the Premises; (2) to maintain the 

  
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insurance required under this Deed to Secure Debt; (3) for any expenses incurred in maintaining the Premises to the extent required under this Deed to Secure Debt or under the Credit
Agreement and upholding the lien of this Deed to Secure Debt, including, but not limited to, the expense of any litigation to prosecute or defend the rights and lien created by this Deed to Secure Debt; and (4) for any amount, cost or charge to
which Grantee becomes subrogated, upon payment, whether under recognized principles of law or equity, or under express statutory authority, which accrued but unpaid interest and the amounts set forth herein after being expanded shall become a part
of the Obligations and be secured by this Deed to Secure Debt, provided, however, that any payments made from time to time in reduction of the principal amount of the Obligations under the Loan Documents shall be applied first in
reduction of the Obligations under the Loan Documents and shall not reduce the sums secured hereby until such time as Grantee shall have no further Obligations to make loans to Grantor under the Loan Documents. 

Section 14.13 ACCEPTANCE. Acceptance of any payment (other than a monetary payment in cure of a
monetary default) after the occurrence of an Event of Default shall not be deemed a waiver of or a cure of such Event of Default and every power and remedy given by this Deed to Secure Debt to Grantee may be exercised from time to time as often as
may be deemed expedient by Grantee. Nothing in this Deed to Secure Debt or in the Loan Documents shall limit or diminish the obligation of Grantor to pay the Obligations in the manner and at the time and place therein respectively expressed. 

Section 14.14 COVER PAGE. The information set forth on the cover hereof is hereby
incorporated herein. 
 Section 14.15 RECEIPT. Grantor acknowledges that it has received a true
copy of this Deed to Secure Debt provided without charge. 
 Section 14.16 GRANTEE’S
CONSENT. If at any time Grantor believes that Grantee has not acted reasonably in granting or withholding any approval or consent under the this Deed to Secure Debt or the Loan Documents, as to which approval or
consent either Grantee has expressly agreed to act reasonably, or absent such agreement, a court of law having jurisdiction over the subject matter would require Grantee to act reasonably, then Grantor’s sole remedy shall be to seek injunctive
relief or specific performance and no action for monetary damages or punitive damages shall in any event or under any circumstances be maintained by Grantor against Grantee. 

Article 15 - STATE-SPECIFIC PROVISIONS 

Section 15.1 PRINCIPLES OF CONSTRUCTION. In the event of any
inconsistencies between the terms and conditions of this Article 15 and the other terms and conditions of this Deed to Secure Debt, the terms and conditions of this Article 15 shall control and be binding. 

Section 15.2 MAXIMUM PRINCIPAL AMOUNT AND MATURITY
DATE. The parties intend that this Deed to Secure Debt shall secure the payment and performance of Grantor’s Obligations hereunder in the maximum amount of the unpaid balance of all loan advances and other
financial accommodations (in the aggregate and exclusive of interest thereon and advances made pursuant hereto for the payment of taxes, insurance premiums, and for protection of the Premises) which may be outstanding at any time of FIFTY MILLION US
DOLLARS (US$50,000,000) with final payment due on or before             , 2020. 

Section 15.3 FUTURE ADVANCES. Grantor agrees that the Obligations shall include, and
that this Deed to Secure Debt is given to secure, advances that may be made by Grantee to Grantor and obligations to Grantee that may be incurred by the Grantor after the execution of this Deed to Secure Debt (“future advances”) and that
this Deed to Secure Debt shall secure all future advances of every kind and 

  
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whenever occurring; provided however, that the maximum principal amount of future advances outstanding at any one time shall not exceed FIFTY MILLION US DOLLARS (US$50,000,000), such maximum
amount being stated herein pursuant to and in accordance with Georgia law and not being a commitment by Grantee to make future advances. The parties further expressly agree that should all monies advanced to the Grantor pursuant to the Credit
Agreement, the Loan Documents be totally repaid and the balance owing to the Grantee be reduced to zero at any time or from time to time, this Deed to Secure Debt shall not become null and void by operation of law or otherwise, but shall remain in
full force and effect and shall retain its priority position of record until cancelled. Should (i) the Obligations be indefeasibly paid in full and the payment of the Obligations no longer be subject to rescission, recovery or repayment upon
the bankruptcy, insolvency, reorganization, moratorium, receivership or similar proceeding affecting the Grantor, and (ii) the obligation of the Grantee to extend any financial accommodation to Grantor be terminated in writing by Grantee or the
Credit Agreement or the Loan Documents terminated by Grantee in writing, this Deed to Secure Debt shall be cancelled and surrendered by Grantee. 

Section 15.4 GRANTEE MAY PURCHASE INSURANCE. As used
herein, the terms “you” and “your” shall refer to Grantor, and the terms “we” and “us” shall refer to Grantee: UNLESS YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR AGREEMENT WITH US, WE MAY
PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT OUR INTERESTS IN YOUR COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT, PROTECT YOUR INTERESTS. THE COVERAGE THAT WE PURCHASE MAY NOT PAY ANY CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN
CONNECTION WITH THE COLLATERAL. YOU MAY LATER CANCEL ANY INSURANCE PURCHASED BY US, BUT ONLY AFTER PROVIDING EVIDENCE THAT YOU HAVE OBTAINED INSURANCE AS REQUIRED BY OUR AGREEMENT. IF WE PURCHASE INSURANCE FOR THE COLLATERAL, YOU WILL BE RESPONSIBLE
FOR THE COSTS OF THAT INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS
OF THE INSURANCE MAY BE ADDED TO YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION. THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE YOU MAY BE ABLE TO OBTAIN ON YOUR OWN. 

Section 15.5 MECHANIC’S LIEN. No lien provided for by the
Statutes of Georgia, in force at any time while the lien hereof exists, in favor of any person who furnished labor or materials in the erection or repair of any building now or hereafter on said land, shall attach to said land or building, except as
subject and subordinate to the lien of this Deed to Secure Debt and any person dealing with said Premises after the recording of this Deed to Secure Debt is hereby charged with notice of and consent to this stipulation, and with a waiver of any lien
except as subject and subordinate hereto. 
 Section 15.6 REDEMPTION WAIVER.
Grantor for itself, its successors and assigns, hereby wholly waives any and all rights of appraisement, sale, redemption, dower, curtesy and homestead under the laws of the State of Georgia now or hereafter in effect. 

Section 15.7 SALE OF PREMISES. During the continuation of any Event of
Default, Grantee, at its option, may sell the Premises or any part of the Premises at one or more public sale or sales before the door of the courthouse of the county in which the Land or any part of the Land is situated, to the highest bidder for
cash, in order to pay the Obligations and all expenses of sale and of all proceedings in connection therewith, including attorney’s fees actually incurred at standard hourly rates, after advertising the time, place and terms of sale once a week
for four (4) weeks immediately preceding such sale (but without regard to the number of days) in a newspaper in which Sheriff’s sales are advertised in said 

  
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county. At any such public sale, Grantee may execute and deliver to the purchaser a conveyance of the Premises or any part of the Premises in fee simple, with full warranties of title and to this
end, Grantor hereby constitutes and appoints Grantee the agent and attorney-in-fact of Grantor to make such sale and conveyance, and thereby to divest Grantor of all right, title and equity that Grantor may have in and to the Premises and to vest
the same in the purchaser or purchasers at such sale or sales, and all the acts and doings of said agent and attorney-in-fact are hereby ratified and confirmed and any recitals in said conveyance or conveyances as to facts essential to a valid sale
shall be binding upon Grantor. The aforesaid power of sale and agency hereby granted are coupled with an interest and are irrevocable by death or otherwise, are granted as cumulative of the other remedies provided hereby or by law for collection of
the Obligations and shall not be exhausted by one exercise thereof but may be exercised until full payment of all of the Obligations. Nevertheless, the Grantor, if so requested by Grantee, shall ratify and confirm any such sale or sales by executing
and delivering to Grantee or to such purchaser or purchasers all such instruments as may be advisable, in the judgment of Grantee, for that purpose, and as may be designated in such request. 

In any sale or sales made by Grantee under the power herein granted, or upon any sale or sales under or by virtue of any judicial proceedings:
(i) the whole of the Premises, real, personal and mixed, may be sold in one parcel as an entirety, or the Premises may be sold in separate parcels as may be determined by Grantee in its discretion; (ii) all recitals contained in any deed
or other instrument of conveyance, assignment or transfer made and delivered by Grantee in pursuance of the powers granted and conferred herein, shall be prima facie evidence of the facts therein set forth; (iii) such sale or sales shall
operate to divest Grantor of all right, title, interest, claim and demand, either at law or in equity, under statute or otherwise, in and to the Premises and every part thereof so sold and shall be a perpetual bar, both in law or equity, against
Grantor and any and all persons claiming or to claim from, through or under Grantor ; and (iv) Grantee may bid for and purchase the Premises or any part thereof or interest therein and in lieu of paying cash therefor may make payment therefor
by presenting to Grantee the Credit Agreement, the Loan Documents or the other evidences of Obligations so that there may be endorsed as paid thereon the net sales price (after deducting therefrom the expenses of the sale and the costs of the action
and any other sums which the Grantee is authorized to deduct under this Deed to Secure Debt) which is to be applied to payment of Obligations as herein provided. Each time it shall become necessary to insert an advertisement of foreclosure, and sale
is not had, Grantee shall be entitled to receive the sum of One Hundred Dollars ($100.00) for services and the amount of all advertising charges from Grantor, all of which shall be further secured hereby. Grantee may comply with any applicable state
or federal law requirements in connection with a disposition of the Premises and compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Premises. Grantee may sell the Premises without giving any
warranties as to the Premises. Grantee may specifically disclaim any warranties of title or the like. This procedure will not be considered adversely to affect the commercial reasonableness of any sale of the Premises. If Grantee sells any of the
Premises upon credit, Grantor will be credited only with payments actually made by the purchaser, received by Grantee and applied to the indebtedness of the purchaser. In the event the purchaser fails to pay for the Premises, Grantee may resell the
Premises. Upon the foreclosure and sale of the Premises, or any part thereof, the proceeds of such sale or sales shall be applied in the manner set forth in the Credit Agreement and the Loan Documents; provided that in the event the net proceeds of
such sale or sales shall not be sufficient to satisfy in full the Obligations, Grantor hereby promises and agrees to pay any deficiency thereon on demand with interest at the Default Rate. Grantee may adjourn from time to time any sale by it to be
made under or by virtue of this Deed to Secure Debt by public announcement at the time and place appointed for such sale or for such adjourned sale or sales; and except as otherwise provided by any applicable provision of law, Grantee, without
further notice or publication, may make such sale at the time and place to which the same shall be fixed by the last postponement. 

  
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 Section 15.8 COMMERCIAL TRANSACTION.
Grantor acknowledges that the transaction of which this deed is a part is a transaction which does not include either agricultural real estate or residential real estate and that this is a “commercial transaction” within the meaning of
O.C.G.A. § 44-14-260(1). 
 Section 15.9 WAIVER. Grantor hereby waives any order or decree of
foreclosure, pursuant to the rights herein granted, on behalf of Grantor, and each and every person acquiring any interest in or title to the Premises, subsequent to the date of this Deed to Secure Debt, and on behalf of all other persons to the
extent permitted by applicable law. 
 In case Grantee shall have proceeded to enforce any right under this Deed to Secure Debt by
foreclosure, entry or otherwise, and such proceedings shall have been discontinued or abandoned because of waiver or for any other reason, or shall have been determined adversely, then, and in such and every such case, Grantor and Grantee shall
severally and respectively be restored to their former positions and rights hereunder in respect of the Premises, and all rights, remedies and powers of Grantee shall continue as though no such proceedings had been taken. No waiver of any breach or
default hereunder shall constitute or be construed as a waiver by Grantee of any subsequent breach or default or of any breach or default of any other provisions of this Deed to Secure Debt. Any waiver by Grantee must be in writing and will not be
construed as a continuing waiver. 
 Section 15.10 ATTORNEY’S
FEES. Notwithstanding anything contained in this Deed to Secure Debt to the contrary, whenever Grantor is required to pay Grantee’s attorney’s fees under this Deed to Secure Debt, such requirement shall
and is hereby deemed to require Grantor to pay the attorney’s fees of Grantee’s counsel actually incurred at the standard hourly rates of such counsel and expenses related thereto. Grantor shall not be liable under any circumstances for
any additional attorneys’ fees or expenses under O.C.G.A. §13-1-11 or otherwise, and, to the extent Grantee may be permitted to charge or receive additional attorneys’ fees or expenses under O.C.G.A. §13-1-11, Grantee hereby
waives such right. 
 BY EXECUTION OF THIS DEED TO SECURE DEBT, GRANTOR EXPRESSLY: (A) ACKNOWLEDGES THE RIGHT OF GRANTEE TO ACCELERATE THE
OBLIGATIONS AND THE POWER OF ATTORNEY GIVEN HEREIN TO GRANTEE TO SELL THE PREMISES BY NON-JUDICIAL FORECLOSURE UPON DEFAULT BY GRANTOR WITHOUT ANY JUDICIAL HEARING AND WITHOUT ANY NOTICE OTHER THAN SUCH NOTICE (IF ANY) AS IS SPECIFICALLY REQUIRED TO
BE GIVEN UNDER THE PROVISIONS OF THIS DEED TO SECURE DEBT (B) WAIVES ANY AND ALL RIGHTS WHICH GRANTOR MAY HAVE UNDER THE CONSTITUTION OF THE UNITED STATES OF AMERICA (INCLUDING, WITHOUT LIMITATION, THE FIFTH AND FOURTEENTH AMENDMENTS THEREOF),
THE VARIOUS PROVISIONS OF THE CONSTITUTIONS FOR THE SEVERAL STATES, OR BY REASON OF ANY OTHER APPLICABLE LAW, (1) TO NOTICE AND TO JUDICIAL HEARING PRIOR TO THE EXERCISE BY GRANTEE OF ANY RIGHT OR REMEDY HEREIN PROVIDED TO GRANTEE, EXCEPT SUCH
NOTICE (IF ANY) AS IS SPECIFICALLY REQUIRED TO BE GIVEN UNDER THE PROVISIONS OF THIS DEED TO SECURE DEBT AND (2) CONCERNING THE APPLICATION, RIGHTS OR BENEFITS OF ANY STATUTE OF LIMITATION OR ANY MORATORIUM, REINSTATEMENT, MARSHALING,
FORBEARANCE, APPRAISEMENT, VALUATION, STAY EXTENSION, HOMESTEAD, EXEMPTION OR REDEMPTION LAWS; (C) ACKNOWLEDGES THAT GRANTOR HAS READ THIS DEED TO SECURE DEBT AND ANY AND ALL QUESTIONS OF GRANTOR REGARDING THE LEGAL EFFECT OF THIS DEED TO
SECURE DEBT AND ITS PROVISIONS HAVE BEEN EXPLAINED FULLY TO GRANTOR, AND GRANTOR HAS CONSULTED WITH COUNSEL OF GRANTOR’S CHOICE PRIOR TO EXECUTING THIS DEED TO SECURE DEBT AND (D) ACKNOWLEDGES THAT


  
 - 30 - 








 
ALL WAIVERS OF THE AFORESAID RIGHTS OF GRANTOR HAVE BEEN MADE KNOWINGLY, INTENTIONALLY AND WILLINGLY BY GRANTOR AS PART OF A BARGAINED FOR LOAN TRANSACTION AND THAT THIS DEED TO SECURE DEBT IS
VALID AND ENFORCEABLE BY GRANTEE AGAINST GRANTOR IN ACCORDANCE WITH ALL THE TERMS AND CONDITIONS HEREOF. 
 [NO FURTHER TEXT ON THIS
PAGE] 

  
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 IN WITNESS WHEREOF, THIS GEORGIA DEED TO SECURE DEBT, ASSIGNMENT OF LEASES AND RENTS, SECURITY
AGREEMENT AND FIXTURE FILING has been duly executed by Grantor to be effective as of the day and year first above written. 
  

									
	Signed, sealed and delivered in the presence of:				 RECRO GAINESVILLE LLC, a

Massachusetts limited liability company,

	  
				successor by merger to RECRO PHARMA
	Unofficial Witness				LLC, a Delaware limited liability company
				
	  
						
	Notary Public				By:		  

					Name:
	My Commission Expires:				Title:
				
	  
						                        (Seal)
	Affix Notary Seal:						








 EXHIBIT A 

LEGAL DESCRIPTION 







 EXHIBIT B 

PERMITTED LIENS 
 Each of the following
shall constitute a Permitted Lien: 







 EXHIBIT H 

FORM OF WARRANT 
 THIS WARRANT AND
THE SECURITIES PURCHASABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SAID ACT AND ANY
APPLICABLE STATE SECURITIES LAWS, UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. 
 Recro Pharma, Inc. 

WARRANT 
 dated as of
            , 2015 
 THIS CERTIFIES THAT, for value received, OrbiMed Royalty
Opportunities II, LP or its successors or permitted assigns (such Person and such successors and assigns each being the “Warrant Holder” with respect to the Warrant held by it), at any time and from time to time on any Business Day on or
prior to 5:00 p.m. (New York City time) on the Expiration Date (as herein defined), is entitled (a) to subscribe for the purchase from Recro Pharma, Inc., a Pennsylvania corporation (the “Company”), [•]1 Shares at a price per Share equal to the Exercise Price (as herein defined), and (b) to the other rights set forth herein; provided that the number of Shares issuable upon any exercise of
this Warrant and the Exercise Price shall be adjusted and readjusted from time to time in accordance with Section 5. By accepting delivery hereof, the Warrant Holder agrees to be bound by the provisions hereof. 

IN FURTHERANCE THEREOF, the Company irrevocably undertakes and agrees for the benefit of Warrant Holder as follows: 

Section 1. Definitions and Construction. 

(a) Certain Definitions. As used herein (the following definitions being applicable in both singular and plural forms): 

“Affiliate” means, with respect to any Person, any other Person that directly or indirectly controls, is controlled
by, or is under common control with such Person. 
 “Appraised Value” means at any time the fair market value
thereof determined in good faith by the Board of Directors of the Company as of a date which is within ten (10) days of the date as of which the determination is to be made, subject to the rights of the Requisite Holders pursuant to
Section 5(n). 
 “Business Day” means any day except a Saturday, Sunday or other day on which commercial
banks in New York City are authorized by law to close. 
 “Closing Price” means, for any trading day with respect to
a Share, (a) the last reported bid price on such day on the Principal Trading Market, as reported by Bloomberg, or (b) if no bid price is reported for such security by Bloomberg, the average of the bid prices of any market makers for such
security as reported by OTC Markets Group. 
  
  

	1 	Number equal to 3.0% of Recro’s outstanding common stock (on a fully diluted basis and after giving effect to any warrants or common stock issued in connection with the Acquisition Agreement, but excluding any
commitment to purchase shares under the Aspire ATM Agreement (but not any shares actually issued thereunder)) post exercise. 


  
 1 








 “Commission” means the Securities and Exchange Commission or any other
Federal agency administering the Securities Act at the time. 
 “Exchange Act” means the Securities Exchange Act of
1934, or any successor Federal statute, and the rules and regulations of the Commission thereunder, all as the same shall be in effect at the time. 

“Exercise Amount” means for any number of Warrant Shares as to which this Warrant is being exercised the product of
(i) such number of Warrant Shares times (ii) the Exercise Price. 
 “Exercise Price” means
$[•]2, as adjusted from time to time pursuant to Section 5. 

“Expiration Date” means the earlier of (i) [•]3, 2022,
and (ii) the closing of a Qualified Change of Control. 
 “Initial Holder” means OrbiMed Royalty Opportunities
II, LP. 
 “Liquid Securities” shall mean a class of securities registered under Section 12(b) of the Exchange
Act, which are (i) listed or quoted for trading on a Trading Market, and (ii) have a sufficiently liquid market such that the Warrant Shares that are received by the Warrant Holder upon a Qualified Change of Control could be sold by the
Warrant Holder in their entirety for cash within 10 trading days after the Qualified Change of Control, without a material adverse impact on the Market Price thereof. 

“Market Price” on any day means the unweighted average of the daily Closing Prices per Share for the 20 consecutive
trading days prior to such date; provided that for purposes of the application of Section 5(b) to a Share Distribution pursuant to a public offering registered under the Securities Act, “Market Price” means the Closing
Price per Share for the trading day preceding the effective date of the registration statement with respect to such public offering (or in the case of an initial public offering, the price per Share in such offering). If the Closing Price cannot be
calculated for a security on a particular date pursuant to the definition of “Closing Price,” the Closing Price of such security on such date shall be the Appraised Value. 

“Person” means an individual, a corporation, a partnership, an association, a trust or any other entity or
organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Principal Trading
Market” means the Trading Market on which the Shares are primarily listed and quoted for trading, which, as of the date of this Warrant, is the NASDAQ Capital Market. 

“Requisite Holders” means at any time holders of Warrant Shares and Warrants representing at least a majority of the
Warrant Shares outstanding or issuable upon the exercise of all the outstanding Warrants. 
 “Qualified Change of
Control” means any Corporate Reorganization (as defined below) in which holders of Shares receive as consideration for their Shares in such transaction (a) cash, (b) Liquid Securities, (c) contingent value rights or
similar instruments that may be satisfied only in cash or Liquid Securities, or (d) any combination of the foregoing. 

“Securities Act” means the Securities Act of 1933, or any successor Federal statute, and the rules and regulations of
the Commission thereunder, all as the same shall be in effect at the time. 
  
  

 

	2 	An amount equal to the weighted average of the daily Closing Prices per Share for the 5 consecutive trading days immediately prior to the signing date of the Credit Agreement. 


	3 	The seven year anniversary of the Closing Date. 


  
 2 








 “Shares” means the Company’s currently authorized common stock,
$0.01 par value, and stock of any other class or other consideration into which such currently authorized capital stock may hereafter have been changed. 

“Trading Market” means whichever of the New York Stock Exchange, the NYSE Alternext, the NASDAQ Global Select Market,
the NASDAQ Global Market, or the NASDAQ Capital Market on which the Shares are listed or quoted for trading on the date in question. 

“Warrant” means, as the context requires, this warrant and any successor warrant or warrants issued upon a whole or
partial transfer or assignment of any such Share purchase warrant or of any such successor warrant. 
 “Warrant
Shares” means Shares issued or issuable upon exercise of this Warrant as set forth in the introduction hereto. 
 (b)
Accounting Terms and Determinations. Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made, and all financial statements required to be delivered
hereunder shall be prepared, in accordance with generally accepted accounting principles. When used herein, the term “financial statements” shall include the notes and schedules thereto. References to fiscal periods are to fiscal periods
of the Company. 
 (c) Computation of Time Periods. With respect to the computation of periods of time from a specified date to a
later specified date, the word “from” means “from and including” and the words “to” and “until” each mean “to but excluding.” Periods of days shall be counted in calendar days unless otherwise
stated. 
 (d) Construction. Unless the context requires otherwise, references to the plural include the singular and to the singular
include the plural, references to any gender include any other gender, the part includes the whole, the term “including” is not limiting, and the term “or” has, except where otherwise indicated, the inclusive meaning represented
by the phrase “and/or.” The words “hereof,” “herein,” “hereby,” “hereunder,” and similar terms in this Warrant refer to this Warrant as a whole and not to any particular provision of this Warrant.
Section, subsection, clause, exhibit and schedule references are to this Warrant, unless otherwise specified. Any reference to this Warrant includes any and all permitted alterations, amendments, changes, extensions, modifications, renewals, or
supplements thereto or thereof, as applicable. 
 (e) Exhibits and Schedules. All of the exhibits and schedules attached hereto shall
be deemed incorporated herein by reference. 
 (f) No Presumption Against Any Party. Neither this Warrant nor any uncertainty or
ambiguity herein or therein shall be construed or resolved using any presumption against any party hereto or thereto, whether under any rule of construction or otherwise. On the contrary, this Warrant has been reviewed by each of the parties and
their counsel and, in the case of any ambiguity or uncertainty, shall be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions of all parties hereto. 

Section 2. Exercise of Warrant. 

(a) Exercise and Payment. The Warrant Holder may exercise this Warrant in whole or in part, at any time or from time to time on any
Business Day on or prior to the Expiration Date, by delivering to the Company (1) the Warrant, (2) a duly executed notice (a “Notice of Exercise”) in the form of Exhibit A and (3) payment to the
Company of the Exercise Price per Warrant Share, at the election of the Warrant Holder, either (A) by wire transfer of immediately available funds to the account 

  
 3 








 
of the Company in an amount equal to the Exercise Amount, (B) by receiving from the Company the number of Warrant Shares equal to (i) the number of Warrant Shares as to which this
Warrant is being exercised minus (ii) the number of Warrant Shares having a value, based on the Closing Price on the trading day immediately prior to the date of such exercise (or if there is no such Closing Price, then based on the Appraised
Value as of such day), equal to the Exercise Amount, or (C) any combination of the foregoing. The Company acknowledges that the provisions of clause (B) are intended, in part, to ensure that a full or partial exchange of this Warrant
pursuant to such clause (B) will qualify as a conversion, within the meaning of paragraph (d)(3)(iii) of Rule 144 under the Securities Act. At the request of any Holder, the Company will accept reasonable modifications to the exchange
procedures provided for in this Section in order to accomplish such intent. For all purposes of this Warrant (other than this Section 2(a)), any reference herein to the exercise of this Warrant shall be deemed to include a reference to
the exchange of this Warrant into Shares in accordance with the terms of clause (B). 
 (b) Effectiveness and Delivery. As soon as
practicable but not later than five Business Days after the Company shall have received such Notice of Exercise and payment, the Company shall execute and deliver or cause to be executed and delivered, in accordance with such Notice of Exercise,
(i) a certificate or certificates representing the number of Shares specified in such Notice of Exercise, or (ii) a confirmation of an electronic delivery of such Shares to the Holder’s account at the Depository Trust Company
(“DTC”) or a similar organization, in each case issued in the name of the Warrant Holder or in such other name or names of any Person or Persons designated in such Notice of Exercise. This Warrant shall be deemed to have been exercised and
such Share certificate or certificates shall be deemed to have been issued, and the Warrant Holder or other Person or Persons designated in such Notice of Exercise shall be deemed for all purposes to have become a holder of record of Shares, all as
of the date that such Notice of Exercise and payment shall have been received by the Company. 
 (c) Surrender of Warrant. The
Warrant Holder shall surrender this Warrant to the Company when it delivers the Notice of Exercise, and in the event of a partial exercise of the Warrant, the Company shall execute and deliver to the Warrant Holder, at the time the Company delivers
the Share certificate or certificates issued pursuant to such Notice of Exercise, a new Warrant for the unexercised portion of the Warrant, but in all other respects identical to this Warrant. 

(d) Legend. Each certificate for Warrant Shares issued upon exercise of this Warrant, unless at the time of exercise such Warrant
Shares are registered under the Securities Act, shall bear the following legend: 
 THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS, UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS
AVAILABLE. 
 Any certificate for Warrant Shares issued at any time in exchange or substitution for any certificate bearing such legend
(unless at that time such Warrant Shares are registered under the Securities Act) shall also bear such legend unless, in the written opinion of counsel selected by the holder of such certificate (who may be an employee of such holder), which counsel
and opinion shall be reasonably acceptable to the Company, the Warrant Shares represented thereby need no longer be subject to restrictions on resale under the Securities Act. 

(e) Fractional Shares. The Company shall not be required to issue fractions of Shares upon an exercise of the Warrant. If any fraction
of a Share would, but for this restriction, be issuable upon an exercise of the Warrant, in lieu of delivering such fractional Share, the Company shall pay to the Warrant 

  
 4 








 
Holder, in cash, an amount equal to the same fraction times the Closing Price on the trading day immediately prior to the date of such exercise (or if there is no such Closing Price, then based
on the Appraised Value as of such day). 
 (f) Expenses and Taxes. The Company shall pay all expenses, taxes and owner charges
payable in connection with the preparation, issuance and delivery of certificates for the Warrant Shares and any new Warrants, except that if the certificates for the Warrant Shares or the new Warrants are to be registered in a name or names other
than the name of the Warrant Holder, funds sufficient to pay all transfer taxes payable as a result of such transfer shall be paid by the Warrant Holder at the time of its delivery of the Notice of Exercise or promptly upon receipt of a written
request by the Company for payment. 
 (g) Automatic Cashless Exercise. To the extent that there has not been an exercise by the
Warrant Holder pursuant to Section 2(a) hereof, any portion of the Warrant that remains unexercised shall be exercised automatically in whole (not in part), upon the Expiration Date. In the event of a Qualified Change of Control, any
portion of the Warrant that remains unexercised shall be exercised automatically in whole (not in part) upon such Qualified Change of Control. Payment by the Warrant Holder upon such automatic exercise shall be in the form of the Warrant Holder
receiving from the Company the number of Warrant Shares equal to (i) the number of Warrant Shares as to which this Warrant is being automatically exercised minus (ii) the number of Warrant Shares having a value (A) in the case of a
Qualified Change of Control, equal to the consideration paid for a Warrant Share upon such Qualified Change of Control, or (B) in any other case, based on the Closing Price on the trading day immediately prior to the date of such automatic
exercise (or if there is no such Closing Price, then based on the Appraised Value as of such day), equal to the Exercise Amount. 

Section 3. Investment Representation; Unregistered Securities. 

(a) By accepting the Warrant, the Warrant Holder represents that it is acquiring the Warrant for its own account for investment purposes and
not with the view to any sale or distribution, that the Warrant Holder will not offer, sell or otherwise dispose of the Warrant or the Warrant Shares except under circumstances as will not result in a violation of applicable securities laws, and
that the Warrant Holder is an “accredited investor” as that term is defined in Rule 501 under the Securities Act. 
 (b) Warrant
Holder understands that the Warrant and the Warrant Shares have not been, and will not be, registered under the Securities Act or any state securities law, by reason of their issuance in a transaction exempt from the registration requirements of the
Securities Act and such laws, that the Warrants and the Warrant Shares must be held indefinitely unless they are subsequently registered under the Securities Act and such laws or a subsequent disposition thereof is exempt from registration, that the
Warrants and the Warrant Shares shall bear a legend to such effect, and that appropriate stop transfer instructions may be issued. Warrant Holder further understands that such exemption depends upon, among other things, the bona fide nature
of Warrant Holder’s investment intent expressed herein. 
 Section 4. Validity of Warrant and Issuance of Shares. 

(a) The Company represents and warrants that this Warrant has been duly authorized, is validly issued, and constitutes the valid and binding
obligation of the Company. 
 (b) The Company further represents and warrants that on the date hereof it is duly authorized and reserved,
and the Company hereby agrees that it will at all times until the Expiration Date have duly authorized and reserved, such number of Shares as will be sufficient to permit the exercise in full of the Warrant, and that all such Shares are and will be
duly authorized and, when issued upon exercise of the Warrant, will be validly issued, fully paid and non-assessable, and free and clear of all security interests, claims, liens, equities and other encumbrances. 

  
 5 








 Section 5. Antidilution Provisions. The Exercise Price in effect at any time, and the
number of Warrant Shares that may be purchased upon any exercise of the Warrant, shall be subject to change or adjustment as follows: 
 (a)
Share Reorganization. If the Company shall subdivide its outstanding Shares into a greater number of Shares, by way of a stock split, stock dividend or otherwise, or consolidate its outstanding Shares into a smaller number of Shares (any such
event being herein called a “Share Reorganization”), then (i) the Exercise Price shall be adjusted, effective immediately after the effective date of such Share Reorganization, to a price determined by multiplying the
Exercise Price in effect immediately prior to such effective date by a fraction, the numerator of which shall be the number of Shares outstanding on such effective date before giving effect to such Share Reorganization and the denominator of which
shall be the number of Shares outstanding after giving effect to such Share Reorganization, and (ii) the number of Shares subject to purchase upon exercise of this Warrant shall be adjusted, effective at such time, to a number determined by
multiplying the number of Shares subject to purchase immediately before such Share Reorganization by a fraction, the numerator of which shall be the number of Shares outstanding after giving effect to such Share Reorganization and the denominator of
which shall be the number of Shares outstanding immediately before giving effect to such Share Reorganization. 
 (b) Pro-Rata
Distributions in Respect of Shares. If the Company, at any time while this Warrant is outstanding, distributes to all holders of Shares (“Pro-Rata Distribution”) for no consideration (i) evidences of its
indebtedness, (ii) any security (other than pursuant to a Share Reorganization which is governed by Section 5(a)), (iii) rights or warrants to subscribe for or purchase any security, or (iv) any other asset, including cash
(in each case, “Distributed Property”), then, upon any exercise of this Warrant that occurs after the record date fixed for determination of shareholder entitled to receive such distribution, the Warrant Holder shall be
entitled to receive, in addition to the Warrant Shares otherwise issuable upon such exercise (if applicable), the Distributed Property that such Holder would have been entitled to receive in respect of such number of Warrant Shares had the Holder
been the record holder of such Warrant Shares immediately prior to such record date without regard to any limitation on exercise contained therein. The Company will at all times set aside in escrow and keep available for distribution to such holder
upon exercise of this Warrant a portion of the Distributed Property to satisfy the distribution to which such Holder is entitled pursuant to this Section 5(b). 

(c) Other Issuances. 

(i) If the Company shall issue, sell or otherwise distribute any Shares (including, for the avoidance of doubt, any deemed issuance, sale or
distribution described in paragraphs (ii) and (iii) below), other than pursuant to a Share Reorganization (which is governed by Section 5(a)) or a Pro-Rata Distribution (which is governed by Section 5(b) (any such
event, including any event described in paragraphs (ii) and (iii) below, being herein called a “Share Distribution”), for a consideration per Share less than the Exercise Price then in effect, then, effective upon
such Share Distribution, the Exercise Price shall be reduced to a price determined by multiplying the Exercise Price by a fraction, the numerator of which shall be the sum of (A) the number of Shares outstanding immediately prior to such Share
Distribution multiplied by the Exercise Price, plus (B) the consideration, if any, received by the Company upon such Share Distribution, and the denominator of which shall be the product of (1) the total number of Shares outstanding
immediately after such Share Distribution multiplied by (2) the Exercise Price. If any Share Distribution shall require an adjustment to the Exercise Price pursuant to the foregoing provisions of this Section 5(c), including by
operation of paragraph (ii) or (iii) below, then, effective at 

  
 6 








 
the time such adjustment is made, the number of Shares subject to purchase upon exercise of this Warrant shall be increased to a number determined by multiplying the number of Shares subject to
purchase immediately before such Share Distribution by a fraction, the numerator of which shall be the Exercise Price in effect immediately prior to such event and the denominator of which shall be the Exercise Price as adjusted in accordance with
this Section 5(c). The provisions of this Section 5(c), including by operation of paragraph (ii) or (iii) below, shall not operate to increase the Exercise Price or reduce the number of Shares subject to purchase
upon exercise of this Warrant. 
 (ii) If the Company shall issue, sell, distribute (other than a Pro Rata Distribution) or otherwise grant
in any manner (including by assumption) any rights to subscribe for or to purchase, or any warrants or options for the purchase of Shares or any securities convertible into or exchangeable for Shares such rights, warrants or options being herein
called “Options” and such convertible or exchangeable securities being herein called “Convertible Securities”), whether or not such Options or the rights to convert or exchange any such Convertible
Securities in respect of such Options are immediately exercisable or exercisable prior to the Expiration Date or thereafter, and the price per Share for which Shares are issuable upon the exercise of such Options or upon conversion or exchange of
such Convertible Securities in respect of such Options (determined by dividing (x) the aggregate amount, if any, received or receivable by the Company as consideration for the granting of such Options, plus the minimum aggregate amount of
additional consideration payable to the Company upon the exercise of all such Options, plus, in the case of Options to acquire Convertible Securities, the minimum aggregate amount of additional consideration, if any, payable upon issuance or sale of
such Convertible Securities and upon the conversion or exchange thereof, by (y) the total maximum number of Shares issuable upon the exercise of such Options or upon the conversion or exchange of all such Convertible Securities issuable upon
the exercise of such Options) shall be less than the Exercise Price, then, for purposes of Section 5(c)(i), the total maximum number of Shares issuable upon the exercise of such Options or upon conversion or exchange of the total maximum
amount of such Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued as of the date of granting of such Options and thereafter shall be deemed to be outstanding and the Company shall be deemed to have
received as consideration of such price per Share, determined as provided above, therefor. Except as otherwise provided in paragraph (iv) below, no additional adjustment of the Exercise Price shall be made upon the actual exercise of such
Options or upon conversion or exchange of such Convertible Securities. 
 (iii) If the Company shall issue, sell or otherwise distribute
(other than a Pro-Rata Distribution) (including by assumption) any Convertible Securities, whether or not the rights to exchange or convert thereunder are immediately exercisable or exercisable prior to the Expiration Date or thereafter, and the
price per Share for which Shares are issuable upon the conversion or exchange of such Convertible Securities (determined by dividing (x) the aggregate amount received or receivable by the Company as consideration for the issuance, sale or
distribution of such Convertible Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof, by (y) the maximum number of Shares issuable upon the conversion
or exchange of all such Convertible Securities) shall be less than the Exercise Price, then, for purposes of Section 5(c)(i), the total maximum number of Shares issuable upon conversion or exchange of all such Convertible Securities
shall be deemed to have been issued as of the date of the issuance, sale or distribution of such Convertible Securities thereafter shall be deemed to be outstanding and the Company shall be deemed to have received as consideration such price per
Share, determined as provided above, therefor. Except as otherwise provided in paragraph (iv) below, no additional adjustment of the Exercise Price shall be made upon the actual conversion or exchange of such Convertible Securities. 

(iv) If (x) the purchase price provided for in any Option referred to in Section 5(c)(ii) or the additional consideration, if
any, payable upon the conversion or exchange of any Convertible Securities referred to in Sections 5(c)(ii) or 5(c)(iii) or the rate at which any Convertible Securities 

  
 7 








 
referred to in Sections 5(c)(ii) or 5(c)(iii) are convertible into or exchangeable for Shares shall change at any time (other than under or by reason of provisions designed to
protect against dilution upon an event which results in a related adjustment pursuant to this Section 5), or (y) any of such Options or Convertible Securities shall have terminated, lapsed or expired, the Exercise Price then in
effect shall forthwith be readjusted (effective only with respect to any exercise of this Warrant after such readjustment) to the Exercise Price which would then be in effect had the adjustment made upon the issuance, sale, distribution or grant of
such Options or Convertible Securities been made based upon such changed purchase price, additional consideration or conversion rate, as the case may be (in the case of any event referred to in clause (x) of this paragraph (iv)) or had such
adjustment not been made (in the case of any event referred to in clause (y) of this paragraph (iv)). 
 (v) If any Shares, Options or
Convertible Securities shall be issued, sold or distributed for cash, the consideration received therefor shall be deemed to be the amount received by the Company therefore, less any expenses in excess of reasonable and customary expenses in
connection therewith. If any Shares, Options or Convertible Securities shall be issued, sold or distributed for a consideration other than cash, the amount of the consideration other than cash received by the Company shall be deemed to be the fair
market value of such consideration at the time of its receipt by the Company as determined in good faith by the Board of Directors of the Company, less any expenses in excess of reasonable and customary expenses incurred in connection therewith. If
any Shares, Options or Convertible Securities shall be issued in connection with any merger in which the Company is the surviving entity, the amount of consideration therefore shall be deemed to be the fair market value of such portion of the assets
and business of the non-surviving entity as shall be attributable to such Shares, Options or Convertible Securities, as the case may be, at the time of the merger as determined in good faith by the Board of Directors of the Company (in making such
determination the members of its Board of Directors may give effect to the proposed acquisition and incorporate the prospects of the performance of the assets and business of the non-surviving corporation over the 12 month period following the
acquisition, including any reasonably demonstrate synergistic or value enhancing factors). If any Options shall be issued in connection with the issuance and sale of other securities of the Company, together comprising one integral transaction in
which no specific consideration is allocated to such Options by the parties thereto, such Options shall be deemed to have been issued without consideration. 

(vi) Notwithstanding the foregoing, no adjustment will be made under this Section 5(c) in respect of: (i) the issuance of
securities upon the exercise or conversion of any securities issued by the Company on prior to the date hereof, (ii) the issuance of Warrant Shares upon exercise of the Warrants, (iii) the grant of options, warrants, Shares or other common
stock equivalents under any duly authorized employee stock option, restricted stock plan or stock purchase plan of the Company whether now existing or hereafter approved by the board of directors of the Company and its shareholders in the future,
and the issuance of Shares in respect thereof, (iv) the issuance of securities in connection with a Strategic Transaction, or (v) the issuance of securities in a transaction described in paragraph (a) or (b) of this
Section 5 (collectively, “Excluded Issuances”). For purposes of this paragraph, a “Strategic Transaction” means a transaction or relationship in which (1) the Company issues Shares of
Common Stock that the Board of Directors of the Company determined in good faith is, itself or through its Subsidiaries, an operating company in a business synergistic with the business of the Company (or a shareholder thereof) and (2) the
Company expects to receive benefits in addition to the investment of funds, but shall not include (x) a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to a Person whose primary business is
investing in securities or (y) issuances to lenders. 
 (d) Above Market Purchases of Securities. If, at any time after the date
hereof, the Company or any Subsidiary shall repurchase (a “Repurchase”), by self-tender offer or otherwise, any securities of the Company at an aggregate repurchase price that exceeds the aggregate Market Price for the
securities 

  
 8 








 
repurchased determined as of the Business Day immediately prior to the earliest of (i) the date of such Repurchase, (ii) the commencement of an offer to repurchase or (iii) the
public announcement of either (such date being referred to as the “Determination Date”), then the Exercise Price and the number of Warrant Shares issuable upon exercise of this Warrant shall be adjusted as follows: 

(A) The Exercise Price shall be reduced to an amount equal to the product of (A) the Exercise Price in effect immediately prior to such
issuance or sale times (B) a fraction, (I) the numerator of which shall be (x) the product of (1) the Market Price for the Shares as of the Determination Date times (2) the number of Shares outstanding immediately following
the consummation of the Repurchase less (y) the Repurchase Premium (as defined below), and (II) the denominator of which shall be (x) the product of (1) the Market Price for the Shares as of the Determination Date times (2) the
number of Shares outstanding immediately following the consummation of the Repurchase. 
 (B) The number of Warrant Shares issuable upon
exercise of this Warrant shall be increased to the number of Shares determined by multiplying (x) the number of Warrant Shares issuable upon exercise of this Warrant immediately prior to such distribution times (y) a fraction (1) the
numerator of which shall be the Exercise Price in effect immediately prior to the adjustment in clause (A) of this Section 5(d) and (2) the denominator of which shall be the Exercise Price in effect immediately after such
adjustment. 
 The amount by which the aggregate repurchase price for all securities repurchased in any Repurchase (including for such
purposes any fees or other direct or indirect consideration payable in connection therewith) exceeds the aggregate Market Price for such securities is referred to as the “Repurchase Premium.” 

(e) Corporate Reorganization. Subject to an automatic cashless exercise in the event of a Qualified Change of Control pursuant to
Section 2(g) hereof, in which case this Section 5(e) shall be inapplicable, if any (i) capital reorganization; (ii) reclassification of the capital stock of the Company; (iii) merger, consolidation or
reorganization or other similar transaction or series of related transactions which results in the voting securities of the Company outstanding immediately prior thereto representing immediately thereafter (either by remaining outstanding or by
being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting power of the voting securities of or economic interests in the Company or such surviving or acquiring entity outstanding immediately
after such merger, consolidation or reorganization; (iv) sale, lease, license, transfer, conveyance or other disposition of all or substantially all of the assets of the Company; (v) sale of shares of capital stock of the Company, in a
single transaction or series of related transactions, representing at least 50% of the voting power of the voting securities of or economic interests in the Company; or (vi) the acquisition by any “person” (together with his, her or
its Affiliates) or “group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act) acquires, directly or indirectly, the beneficial ownership (as such term is defined in Rule 13d-3 promulgated under the Exchange Act) of
outstanding shares of capital stock and/or other equity securities of the Company, in a single transaction or series of related transactions (including, without limitation, one or more tender offers or exchange offers), representing at least 50% of
the voting power of or economic interests in the then outstanding shares of capital stock of the corporation (each of (i)-(vi) above a “Corporate Reorganization”) shall be effected, then the Company shall use its
best efforts to ensure that lawful and adequate provision shall be made whereby each Warrant Holder shall thereafter continue to have the right to purchase and receive upon the basis and upon the terms and conditions herein specified and in lieu of
the Warrant Shares issuable upon exercise of the Warrants held by such Warrant Holder, shares of stock in the surviving or acquiring entity (“Acquirer”), as the case may be, such that the aggregate value of the Warrant
Holder’s warrants to purchase such number of shares, where the value of each new warrant to purchase one share in the Acquirer is determined in accordance with the Black-Scholes Option Pricing formula set forth in Appendix
(A) hereto, is equivalent 

  
 9 








 
to the aggregate value of the Warrants held by such Warrant Holder, where the value of each Warrant to purchase one share in the Company is determined in accordance with the Black-Scholes Option
Pricing formula set forth Appendix (B) hereto. Furthermore, the new warrants to purchase shares in the Acquirer referred to herein shall have the same expiration date as the Warrants, and shall have a strike price, KAcq, that is calculated in accordance with Appendix (A) hereto. For the avoidance of doubt, if the surviving or acquiring entity, as the case may be, is a member of a consolidated group
for financial reporting purposes, the “Acquirer” shall be deemed to be the parent of such consolidated group for purposes of this Section 5(e) and Appendix (A) hereto. 

Moreover, appropriate provision shall be made with respect to the rights and interests of each Warrant Holder to the end that the provisions hereof
(including, without limitation, provision for adjustment of the Warrant Price) shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any shares of stock thereafter deliverable upon the exercise thereof. The
Company shall not effect any such Corporate Reorganization unless prior to or simultaneously with the consummation thereof the successor corporation resulting from such consolidation or merger, or the corporation purchasing or otherwise acquiring
such assets or other appropriate corporation or entity shall assume by written instrument, reasonably deemed by the Board of Directors of the Company and the Requisite Holders to be satisfactory in form and substance, the obligation to deliver to
the holder of the Warrants, at the last address of such holder appearing on the books of the Company, such shares of stock, as, in accordance with the foregoing provisions, such holder may be entitled to purchase, and the other obligations under
these Warrants. The provisions of this Section 5(e) shall similarly apply to successive Corporate Reorganizations. If the Company, in spite of using its best efforts, is unable to cause these Warrants to continue in full force and effect
until the Expiration Date in connection with any Corporate Reorganization, then the Company shall pay the Warrant Holders an amount per Warrant to purchase one share in the Company that is calculated in accordance with the Black-Scholes Option
Pricing formula set forth in Appendix (B) hereto. Such payment shall be made in cash in the event that the Corporate Reorganization results in the shareholders of the Company receiving cash from the Acquirer at the closing of the
transaction, and shall be made in shares of the Company (with the value of each share in the Company is determined according to SCorp in Appendix (B) hereto) in the event
that the Corporate Reorganization results in the shareholders of the Company receiving shares in the Acquirer or other entity at the closing of the transaction. In the event that the shareholders of the Company receive both cash and shares at the
closing of the transaction, such payment to the Warrant Holders shall be also be made in both cash and shares in the same proportion as the consideration received by the shareholders. 

(f) Adjustment Rules. 

(i) Any adjustments pursuant to this Section 5 shall be made successively whenever any event referred to herein shall occur,
except that, notwithstanding any other provision of this Section 5, no adjustment shall be made to the number of Warrant Shares to be delivered to the Warrant Holder (or to the Exercise Price) if such adjustment represents less than 1%
of the number of Warrant Shares previously required to be so delivered, but any lesser adjustment shall be carried forward and shall be made at the time and together with the next subsequent adjustment which together with any adjustments so carried
forward shall amount to 1% or more of the number of Warrant Shares to be so delivered. 
 (ii) No adjustments shall be made pursuant to this
Section 5 in respect of the issuance of Warrant Shares upon exercise of the Warrant; 
 (iii) If the Company shall take a record of the
holders of its Shares for any purpose referred to in this Section 5, then (x) such record date shall be deemed to be the date of the issuance, sale, distribution or grant in question and (y) if the Company shall legally abandon
such action prior to effecting such action, no adjustment shall be made pursuant to this Section 5 in respect of such action. 

  
 10 








 (iv) In computing adjustments under this Section 5, (A) fractional interests in
Shares shall be taken into account to the nearest one-thousandth of a Share, and (B) calculations of the Exercise Price shall be carried to the nearest one-thousandth of one cent. 

(v) Notwithstanding anything herein to the contrary, no adjustment pursuant to this Section 5 shall cause the aggregate Exercise
Price for all of the Warrant Shares to increase to more than $100.00. 
 (g) Proceedings Prior to Any Action Requiring Adjustment. As
a condition precedent to the taking of any action which would require an adjustment pursuant to this Section 5, the Company shall take any action which may be necessary, including obtaining regulatory approvals or exemptions, in order
that the Company may thereafter validly and legally issue as fully paid and nonassessable all Shares which the Warrant Holder is entitled to receive upon exercise of the Warrant. 

(h) Notice of Adjustment. Not less than 10 days prior to the record date or effective date, as the case may be, of any action which
requires or might require an adjustment or readjustment pursuant to this Section 5, the Company shall give notice to the Warrant Holder of such event, describing such event in reasonable detail and specifying the record date or effective
date, as the case may be, and, if determinable, the required adjustment and computation thereof. If the required adjustment is not determinable as the time of such notice, the Company shall give notice to the Warrant Holder of such adjustment and
computation as soon as reasonably practicable after such adjustment becomes determinable. In connection with any such adjustment or readjustment, at its sole cost and expense, the Company will also cause independent certified public accountants of
recognized national standing (which may be the regular auditors of the Company) selected by the Company to verify its computations and, in connection with the preparation of the Company’s quarterly financial statements prepare a report setting
forth such adjustment or readjustment and showing in reasonable detail the method of calculation thereof and the facts upon which such adjustment or readjustment is based, including a statement of (i) the consideration received or to be
received by the Company for any Share Distribution issued or sold or deemed to have been issued, (ii) the number of Shares outstanding or deemed to be outstanding, and (iii) the Exercise Price in effect immediately prior to such issue or
sale and as adjusted and readjusted (if required by this Section 5) on account thereof. The Company will forthwith mail a copy of each such report to the Warrant Holder and will, upon the written request at any time of the Warrant
Holder, furnish to such holder a like report setting forth the Exercise Price at the time in effect and showing in reasonable detail how it was calculated. The Company will also keep copies of all such reports at its office and will cause the same
to be available for inspection at such office during normal business hours by the Warrant Holder or any prospective purchaser of this Warrant designated by the Warrant Holder. 

(i) Subsequent Warrants. Irrespective of any adjustments in the Exercise Price or the number of Warrant Shares issuable upon exercise
of this Warrant, any successor or replacement warrants issued theretofore or thereafter may continue to express the same Exercise Price per Share and number and kind of Warrant Shares as are stated in this Warrant. 

(j) Disputes. Any dispute which arises between the Warrant Holder and the Company with respect to the calculation of the adjusted
Exercise Price or Warrant Shares issuable upon exercise shall be determined by the independent auditors of the Company, and such determination shall be binding upon the Company and the holders of the Warrants and the Warrant Shares if made in good
faith and without manifest error. 

  
 11 








 (k) Other Actions Affecting Shares. 

(i) Equitable Equivalent. In case any event shall occur as to which the provisions of this Section 5 set forth above hereof
are not strictly applicable but the failure to make any adjustment would not, in the opinion of the Warrant Holder, fairly protect the purchase rights represented by this Warrant in accordance with the essential intent and principles of this
Section 5, then, in each such case, at the request of the Warrant Holder, the Company shall appoint a firm of independent investment bankers of recognized national standing (which shall be completely independent of the Company and shall
be satisfactory to the holder or the Requisite Holders), which shall give their opinion upon the adjustment, if any, on a basis consistent with the essential intent and principles established in this Section 5, necessary to preserve,
without dilution, the purchase rights represented by this Warrant. Upon receipt of such opinion, the Company will promptly mail a copy thereof to the holder of this Warrant and shall make the adjustments described therein. 

(ii) No Avoidance. The Company shall not, by amendment of its certificate of incorporation or by-laws or through any consolidation,
merger, reorganization, transfer of assets, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist
in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against dilution or other impairment as if the holder was a shareholder of the
Company entitled to the benefit of fiduciary duties afforded to shareholders under Pennsylvania law. 
 (l) Calculation of Consideration
Received. The consideration for the issue or sale of any Share Distribution shall, irrespective of the accounting treatment of such consideration: 

(i) insofar as it consists of cash, be computed at the amount of cash actually received by the Company without reduction for any expenses paid
or incurred by the Company or any commissions or compensations paid or concessions or discounts allowed to underwriters, dealers or others performing similar services in connection with such issue or sale; 

(ii) insofar as it consists of property (including securities) other than cash actually received by the Company, be computed at the Appraised
Value thereof at the time of such issue or sale; and 
 (iii) insofar as it consists neither of cash nor of other property, be computed as
having no value. 
 (m) Adjustment of Par Value. If for any reason (including the operation of the adjustment provisions set forth in
this Warrant), the Exercise Price on any date of exercise of this Warrant shall not be lawful and adequate consideration for the issuance of the relevant Warrant Shares, then the Company shall take such steps as are necessary (including the
amendment of its certificate of incorporation so as to reduce the par value of the Shares) to cause such Exercise Price to be adequate and lawful consideration on the date the payment thereof is due, but if the Company shall fail to take such steps,
then the Company acknowledges that the Warrant Holder shall have been damaged by the Company in an amount equal to an amount, which, when added to the total Exercise Price for the relevant Warrant Shares, would equal lawful and adequate
consideration for the issuance of such Warrant Shares, and the Company irrevocably agrees that if the Warrant Holder shall then forgive the right to recover such damages from the Company, such forgiveness shall constitute, and Company shall accept
such forgiveness as, additional lawful consideration for the issuance of the relevant Warrant Shares. 

  
 12 








 (n) Appraisal. 

(i) If the Requisite Holders shall, for any reason whatsoever, disagree with the Company’s determination of the Appraised Value of a
Share, then such holders shall by notice to the Company (an “Appraisal Notice”) given within sixty (60) days after the Company notifies the holders of such determination, elect to dispute such determination, and such
dispute shall be resolved as set forth in clause (ii) of this Section. 
 (ii) The Company shall within ten (10) days after an
Appraisal Notice shall have been given, engage an independent investment bank of national repute (the “Appraiser”) selected by the Requisite Holders and retained pursuant to an engagement letter between the Company and the
Appraiser with respect to such valuation in form and substance reasonably acceptable to Requisite Holders, to make an independent determination of the Appraised Value of a Share; such value shall be determined without deduction for
(a) liquidity considerations, (b) minority shareholder status, or (c) any liquidation or other preference or any right of redemption in favor of any other equity securities of the Company. The costs of engagement of such investment
bank for any such determination of Appraised Value shall be paid by the Company. 
 (o) Trading Market Limitation. 

(i) Notwithstanding any other provisions in this Warrant to the contrary, unless and until the Shareholder Approval is received, no adjustment
pursuant to this Section 5 shall require the Company to issue more than [                ]4 Shares upon
exercise of the Warrant (“Warrant Share Cap”); provided that the Warrant Share Cap shall be adjusted in connection with any Share Reorganization in the same manner as the number of Warrant Shares is adjusted pursuant
to Section 5(a). 
 (ii) As a condition precedent to the Company consummating any transaction that, but for the application of
Section 5(o)(i), would have resulted in an adjustment which would have required the Company to issue Shares upon exercise of the Warrant in excess of the Warrant Share Cap, the Company shall obtain shareholder approval and take such other
actions as reasonably necessary (collectively, the “Shareholder Approval”) to permit the issuance of Shares in excess of the Warrant Share Cap. 

Section 6. Transfer of Warrant. The Warrant Holder upon transfer of the Warrant must deliver to the Company a duly executed
Warrant Assignment in the form of Exhibit B and upon surrender of this Warrant to the Company, the Company shall execute and deliver a new Warrant with appropriate changes to reflect such Assignment, in the name or names of the assignee
or assignees specified in the Warrant Assignment or other instrument of assignment and, if the Warrant Holder’s entire interest is not being transferred or assigned, in the name of the Warrant Holder, and upon the Company’s execution and
delivery of such new Warrant, this Warrant shall promptly be cancelled; and provided that any assignee shall have all of the rights of an Initial Holder hereunder. The Warrant Holder shall pay any transfer tax imposed in connection with such
assignment (if any). Any transfer or exchange of this Warrant shall be without charge to the Warrant Holder (except as provided above with respect to transfer taxes, if any) and any new Warrant issued shall be dated the date hereof. 

Section 7. Assistance in Disposition of Warrant or Warrant Shares. Notwithstanding any other provision herein, in the event that
it becomes unlawful for the Warrant Holder to continue to hold the Warrant, in whole or in part, or some or all of the Shares held by it, or restrictions are imposed on any the Warrant Holder by any statute, regulation or governmental authority
which, in the judgment of the Warrant Holder, make it unduly burdensome to continue to hold the Warrant or such Shares, the Warrant 
  

 

	4 	 Number shall equal 15% of the outstanding Shares on the issue date of this Warrant.




  
 13 








 
Holder may sell or otherwise dispose of the Warrant (subject to the restrictions on transfer provided in Section 6) or its Shares, and the Company agrees to provide reasonable
assistance to the Warrant Holder in disposing of the Warrant and such Shares in a prompt and orderly manner and, at the request of the Warrant Holder, to provide (and authorize the Warrant Holder to provide) financial and other information
concerning the Company to any prospective purchaser of the Warrant or Shares owned by the Warrant Holder. 
 Section 8 Identity of
Transfer Agent. The Transfer Agent for the Common Stock is Broadridge Corporate Issuer Solutions, Inc. Upon the appointment of any subsequent transfer agent for the Shares, the Company will mail to the Warrant Holder a statement setting forth
the name and address of such transfer agent. 
 Section 9. Covenants. The Company agrees that: 

(a) Information. So long as this Warrant remains outstanding or any Initial Holder holds any Warrant Shares, the Company will deliver
to the Warrant Holder (or Initial Holder): 
 (i) as soon as available and in any event within 90 days after the end of each fiscal
year, an audited consolidated and consolidating balance sheet of the Company and its consolidated subsidiaries as of the end of such fiscal year and the related consolidated statements of income and cash flows for such fiscal year, prepared in
conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, and setting forth in each case in comparative form the figures for the previous fiscal year, all in
reasonable detail and reported on without qualification by public accountants of nationally recognized standing; 
 (ii) as soon as
available but not later than 30 days after the end of each month which is not a fiscal quarter end and 45 days after the end of each month which is a fiscal quarter end, a consolidated and consolidating balance sheet of the Company as of the
end of such month, and the related consolidated and consolidating statements of income and cash flows for such month and for the portion of the fiscal year ended at the end of such month, prepared in conformity with generally accepted accounting
principles in the United States applied on a consistent basis, except as otherwise noted therein, and setting forth, in each case, in comparative form the figures for the corresponding month and the corresponding portion of the previous fiscal year,
together with a comparison of results to the Company’s projections for such fiscal year; 
 (iii) promptly upon the filing thereof,
copies of all registration statements (other than the exhibits thereto and any registration statements on Form S-8 or its equivalent) and to the extent the Company is required by law or pursuant to the terms
of any outstanding indebtedness of the Company to prepare such reports, any annual reports, quarterly reports and other periodic reports pursuant to Section 13 or 15(d) of the Exchange Act actually prepared by the Company as soon as available;
and 
 (iv) promptly, upon the issuance thereof, all statements and notices sent to the Company’s shareholders. 

The information requirements set forth in Sections 9(a)(i)-(iv) shall be deemed to be satisfied upon filing of such information
via EDGAR with the Commission. 
 (b) Securities Filings; Rules 144 & 144A. The Company will (i) file any reports
required to be filed by it under the Securities Act, the Exchange Act or the rules and regulations adopted by the Commission thereunder, (ii) use its commercially reasonable efforts to cooperate with the Warrant Holder and each holder of
Warrant Shares in supplying such information concerning the Company as may be 

  
 14 








 
necessary for the Warrant Holder or holder of Warrant Shares to complete and file any information reporting forms currently or hereafter required by the Commission as a condition to the
availability of an exemption from the Securities Act for the sale of any Warrants or Warrant Shares, (iii) take such further action as the Warrant Holder may reasonably request to the extent required from time to time to enable the Warrant
Holder to sell Warrant Shares without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 or 144A under the Securities Act, as such Rules may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission, and (iv) upon the request of the Warrant Holder, deliver to the Warrant Holder a written statement as to whether it has complied with such reporting requirements; provided that this
subsection (b) shall not require the Company to make any filing under the Securities Act or Exchange Act which the Company is not otherwise obligated to make. 

(c) Obtaining of Governmental Approvals and Stock Exchange Listings. The Company will, at its own expense, (i) obtain and keep
effective any and all permits, consents and approvals of governmental agencies and authorities which may from time to time be required of the Company in order to satisfy its obligations hereunder, and (ii) take all action which may be necessary
so that the Warrant Shares, immediately upon their issuance upon the exercise of the Warrants, will be listed on Trading Market, if any, on which the Shares are then listed. 

(d) Structural Dilution. So long as this Warrant remains outstanding, the Company shall not permit any of its Subsidiaries to issue,
sell, distribute or otherwise grant in any manner (including by assumption) any rights to subscribe for or to purchase, or any warrants or options for the purchase of any equity securities of such Subsidiary or any securities convertible into or
exchangeable for such equity securities (or any rights to subscribe for or to purchase, or any warrants or options for the purchase of any such convertible or exchangeable securities), whether or not immediately exercisable or exercisable prior to
the Expiration Date or thereafter. 
 (e) Notices Of Corporate Action. In the event of: 

(i) any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are
entitled to receive any distribution, or any right to subscribe for, purchase or otherwise acquire any Shares or any other securities or property, or to receive any other right, or 

(ii) any capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company, any
consolidation or merger involving the Company and any other Person or any transfer of all or substantially all the assets of the Company to any other Person, or any Corporate Reorganization, or 

(iii) any voluntary or involuntary dissolution, liquidation or winding-up of the Company, or 

(iv) any issuance of any Shares, Convertible Security or Option by the Company, 

the Company will mail to the Warrant Holder a notice specifying (i) the date or expected date on which any such record is to be taken for
the purpose of such dividend, distribution or right, and the amount and character of such dividend, distribution or right, (ii) the date or expected date on which any such reorganization, reclassification, recapitalization, consolidation,
merger, transfer, dissolution, liquidation or winding-up is to take place, (iii) the time, if any such time is to be fixed, as of which the holders of record of Shares (or other securities under Section 5(d)) shall be entitled to
exchange their Shares (or other securities under Section 5(d)) for the securities or other property deliverable upon such 

  
 15 








 
reorganization, reclassification, recapitalization, consolidation, merger, transfer, dissolution, liquidation or winding-up and a description in reasonable detail of the transaction and
(iv) the date of such issuance, together with a description of the security so issued and the consideration received by the Company therefor. Such notice shall be mailed at least ten (10) days prior to the date therein specified. 

Section 10. Lost, Mutilated or Missing Warrants. Upon receipt by the Company of evidence reasonably satisfactory to it of the
loss, theft, destruction or mutilation of any Warrant, and, in the case of loss, theft or destruction, upon receipt of indemnification satisfactory to the Company (in the case of an Initial Holder its unsecured, unbonded agreement of indemnity or
affidavit of loss shall be sufficient) or, in the case of mutilation, upon surrender and cancellation of the mutilated Warrant, the Company shall execute and deliver a new Warrant of like tenor and representing the right to purchase the same
aggregate number of Warrant Shares. 
 Section 11. Waivers; Amendments. Any provision of this Warrant may be amended or waived
with (but only with) the written consent of the Company and the Requisite Holders; provided that no such amendment or waiver shall, without the written consent of the Company and the Warrant Holder, (a) change the number of Warrant
Shares issuable upon exercise of the Warrant or the Exercise Price, (b) shorten the Expiration Date, or (c) amend, modify or waive the provisions of this Section or the definition of “Requisite Holders.” Any amendment or waiver
effected in compliance with this Section shall be binding upon the Company and the Warrant Holder. The Company shall give prompt notice to the Warrant Holder of any amendment or waiver effected in compliance with this Section. No failure or delay of
the Company or the Warrant Holder in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a
right or power, preclude any other or further exercise thereon or the exercise of any other right or power. No notice or demand on the Company in any case shall entitle the Company to any other or future notice or demand in similar or other
circumstances. The rights and remedies of the Company and the Warrant Holder hereunder are cumulative and not exclusive of any rights or remedies which it would otherwise have. 

Section 12. Miscellaneous. 

(a) Shareholder Rights. The Warrant shall not entitle any Warrant Holder, prior to the exercise of the Warrant, to any voting rights as
a shareholder of the Company. 
 (b) Expenses. The Company shall pay all reasonable out-of-pocket expenses of the Warrant Holder,
including reasonable fees and disbursements of counsel, in connection with the preparation of the Warrant, any waiver or consent hereunder or any amendment or modification hereof (regardless of whether the same becomes effective). The Company shall
not be required to pay any expenses of the Warrant Holder under any other circumstance including those arising solely in connection with a transfer of the Warrant. 

(c) Successors and Assigns. All the provisions of this Warrant by or for the benefit of the Company or the Warrant Holder shall bind
and inure to the benefit of their respective successors and assigns. 
 (d) Severability. In case any one or more of the provisions
contained in this Warrant shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties shall
endeavor in good faith negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 

  
 16 








 (e) Notices. Any notice or other communication hereunder shall be in writing and shall be
sufficient if sent by first-class mail or courier, postage prepaid, and addressed as follows: (a) if to the Company, addressed to the Company at its address for notices as set forth below its signature hereon or any other address as the Company
may hereafter notify to the Warrant Holder and(b) if to the Warrant Holder, addressed to such address as the Warrant Holder may hereafter from time to time notify to the Company for the purposes of notice hereunder. 

(f) Equitable Remedies. Without limiting the rights of the Company and the Warrant Holder to pursue all other legal and equitable
rights available to such party for the other parties’ failure to perform its obligations hereunder, the Company and the Warrant Holder each hereto acknowledge and agree that the remedy at law for any failure to perform any obligations hereunder
would be inadequate and that each shall be entitled to specific performance, injunctive relief or other equitable remedies in the event of any such failure. 

(g) Continued Effect. Rights and benefits conferred on the holders of Warrant Shares pursuant to the provisions hereof shall continue
to inure to the benefit of, and shall be enforceable by, such holders, notwithstanding the surrender of the Warrant to, and its cancellation by, the Company upon the full or partial exercise or repurchase hereof. 

(h) Confidentiality. The Warrant Holder agrees to keep confidential any proprietary information relating to the Company delivered by
the Company hereunder; provided that nothing herein shall prevent the Warrant Holder from disclosing such information: (i) to any holder of Warrants or Warrant Shares, (ii) to any Affiliate of any holder of Warrants or Warrant
Shares or any actual or potential transferee of the rights or obligations hereunder that agrees to be bound by this Section 12(h), (iii) upon order, subpoena, or other process of any court or administrative agency or otherwise
required by law, (iv) upon the request or demand of any regulatory agency or authority having jurisdiction over such party, (v) which has been publicly disclosed, (vi) which has been obtained from any Person that is not a party hereto
or an affiliate of any such party and which was not disclosed to the Warrant Holder in violation of a confidentiality obligation to the Company known to the Warrant Holder, (vii) as may be required in connection with the exercise of any remedy,
or the resolution of any dispute hereunder (provided that the Warrant Holder uses commercially reasonable efforts to prevent further dissemination of the information), or (viii) to the legal counsel or certified public accountants for any
holder of Warrants or Warrant Shares. 
 (i) Governing Law. THIS WARRANT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE COMMONWEALTH OF PENNSYLVANIA, EXCEPT AS OTHERWISE REQUIRED BY MANDATORY PROVISIONS OF LAW. 
 (j) Section
Headings. The section headings used herein are for convenience of reference only and shall not be construed in any way to affect the interpretation of any provisions of the Warrant. 

  
 17 








 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized
signatory as of the day and year first above written. 
  

			
	 RECRO PHARMA, INC., a Pennsylvania

corporation

		
	By		  

	Name:
	Title:
	
	Address for Notices:
	
	 Telephone:

Facsimile:





  
 1 








 Exhibit A to Warrant 

Form of Notice of Exercise 

            ,20     

To: [                    ] 

Reference is made to the Warrant dated
                    . Terms defined therein are used herein as therein defined. 

The undersigned, pursuant to the provisions set forth in the Warrant, hereby irrevocably elects and agrees to purchase
                Shares, and makes payment herewith in full therefor at the Exercise Price of $        in the following form:
            . 
  

[If the number of Shares as to which the Warrant is being exercised is less than all of the Shares purchasable thereunder, the undersigned
hereby requests that a new Warrant representing the remaining balance of the Shares be registered in the name of                     , whose address
is:                                         .]

 The undersigned hereby represents that it is exercising the Warrant for its own account or the account of an Affiliate for investment
purposes and not with the view to any sale or distribution and that the Warrant Holder will not offer, sell or otherwise dispose of the Warrant or any underlying Warrant Shares in violation of applicable securities laws. 

 

			
	[NAME OF WARRANT HOLDER]
		
	By		  

	Name:
	Title:
	
	[ADDRESS OF WARRANT HOLDER]









 Exhibit B to Warrant 

Form of Warrant Assignment 

Reference is made to the Warrant dated
                    , issued by
[                    ]. Terms defined therein are used herein as therein defined. 

FOR VALUE RECEIVED
                    (the “Assignor”) hereby sells, assigns and transfers all of the rights of the Assignor as set forth in such Warrant,
with respect to the number of Warrant Shares covered thereby as set forth below, to the Assignee(s) as set forth below: 
 Number of
Warrant Shares 
  

					
	 Name(s) of Assignee(s)
	  	 Address(es)
	  	 Number of Warrant

Shares



All notices to be given by the Company to the Assignor as Warrant Holder shall be sent to the Assignee(s) at the above listed address(es),
and, if the number of Shares being hereby assigned is less than all of the Shares covered by the Warrant held by the Assignor, then also to the Assignor. 

In accordance with Section 7 of the Warrant, the Assignor requests that the Company execute and deliver a new Warrant or Warrants in the
name or names of the assignee or assignees, as is appropriate, or, if the number of Shares being hereby assigned is less than all of the Shares covered by the Warrant held by the Assignor, new Warrants in the name or names of the assignee or the
assignees, as is appropriate, and in the name of the Assignor. 
 The undersigned represents that the Assignee has represented to the
Assignor that the Assignee is acquiring the Warrant for its own account or the account of an Affiliate for investment purposes and not with the view to any sale or distribution, and that the Assignee will not offer, sell or otherwise dispose of the
Warrant or the Warrant Shares except under circumstances as will not result in a violation of applicable securities laws. 
 Dated:
            , 20     
  

			
	[NAME OF ASSIGNOR]
		
	By	 	  

	Name:
	Title:
	
	[ADDRESS OF ASSIGNOR]









 APPENDIX A 

Black Scholes Option Pricing formula to be used when calculating the value of each new warrant to purchase one share in the Acquirer shall be: 

CAcq = SAcqe-l(TAcq-tAcq)N(d1) –
KAcqe-r(TAcq-tAcq)N(d2), where 

CAcq = value of each warrant to purchase one share in the Acquirer 

SAcq = price of Acquirer’s stock as determined by reference to the average of the closing
prices on the securities exchange over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization described in Section 5(d) if the Acquirer’s stock is then traded on such exchange or system, or the
average of the closing bid or sale prices (whichever is applicable) in the over-the-counter market over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization if the Acquirer’s stock is then actively
traded in the over-the-counter market, or the then most recently completed financing if the Acquirer’s stock is not then traded on a securities exchange or system or in the over-the-counter market. 

TAcq = expiration date of new warrants to purchase shares in the Acquirer = TCorp 
 tAcq = date of issue of new
warrants to purchase shares in the Acquirer 
 TAcq-tAcq = time until warrant expiration, expressed in years 

s = volatility = annualized standard deviation of daily log-returns (using a 262-day
annualization factor) of the Acquirer’s stock price on the securities exchange over a 20-day trading period, determined by the Warrant Holders, that is within the 100-day trading period ending on the trading day immediately after the public
announcement of the Corporate Reorganization described in Section 5(d) if the Acquirer’s stock is then traded on such exchange or system, or the annualized standard deviation of daily-log returns (using a 262-day annualization factor) of
the closing bid or sale prices (whichever is applicable) in the over-the-counter market over a 20-day trading period, determined by the Warrant Holder, that is within the 100-day trading period ending on the trading day immediately after the public
announcement of the Corporate Reorganization if the Acquirer’s stock is then actively traded in the over-the-counter market, or 0.6 (or 60%) if the Acquirer’s stock is not then traded on a securities exchange or system or in the
over-the-counter market. 
 N = cumulative normal distribution function 

d1 = (ln(SAcq/KAcq) + (r-l+s2/2)(TAcq-tAcq)) ÷
(sÖ(TAcq-tAcq))

 ln = natural logarithm 
 l = dividend rate of the Acquirer for the most recent 12-month period at the time of closing of the Corporate Reorganization. 

KAcq = strike price of new warrants to purchase shares in the Acquirer = KCorp * (SAcq / SCorp) 

r = annual yield, as reported by Bloomberg at time tAcq, of the United States Treasury security
measuring the nearest time TAcq 
 d2 = d1- sÖ(TAcq-tAcq) 







 APPENDIX B 

Black Scholes Option Pricing formula to be used when calculating the value of each Warrant to purchase one share in the Company shall be: 

CCorp = SCorpe-l(TCorp-tCorp)N(d1) –
KCorpe-r(TCorp-tCorp)N(d2), where 

CCorp = value of each Warrant to purchase one share in the Company 

SCorp = price of Company stock as determined by reference to the average of the closing prices
on the securities exchange over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization described in Section 5(d) if the Company’s stock is then traded on such exchange or system, or the average of
the closing bid or sale prices (whichever is applicable) in the over-the-counter market over the 20-day period ending three trading days prior to the closing of the Corporate Reorganization if the Company’s stock is then actively traded in the
over-the-counter market, or the then most recently completed financing if the Company’s stock is not then traded on a securities exchange or system or in the over-the-counter market. 

TCorp = expiration date of Warrants to purchase shares in the Company 

tCorp = date of public announcement of transaction 

TCorp-tCorp = time until Warrant
expiration, expressed in years 
 s = volatility = the annualized standard deviation of
daily log-returns (using a 262-day annualization factor) of the Company’s stock price on the securities exchange over a 20-day trading period, determined by the Warrant Holders, that is within the 100-day trading period ending on the trading
day immediately after the public announcement of the Corporate Reorganization described in Section 5(d) if the Company’s stock is then traded on such exchange or system, or the annualized standard deviation of daily-log returns (using a
262-day annualization factor) of the closing bid or sale prices (whichever is applicable) in the over-the-counter market over a 20-day trading period, determined by the Warrant Holder, that is within the 100-day trading period ending on the trading
day immediately after the public announcement of the Corporate Reorganization if the Company’s stock is then actively traded in the over-the-counter market, or 0.6 (or 60%) if the Company’s stock is not then traded on a securities exchange
or system or in the over-the-counter market. 
 N = cumulative normal distribution function 

d1 = (ln(SCorp/KCorp) + (r-l+s2/2)(TCorp-tCorp)) ÷
(sÖ(TCorp-tCorp))

 ln = natural logarithm 
 l = dividend rate of the Company for the most recent 12-month period at the time of closing of the Corporate Reorganization. 

KCorp = strike price of warrant 

r = annual yield, as reported by Bloomberg at time tCorp, of the United States Treasury
security measuring the nearest time TCorp 
 d2
= d1-
sÖ(TCorp-tCorp)








 EXHIBIT I 

FORM OF PERFECTION CERTIFICATE FOR RECRO PHARMA, INC. 

PERFECTION CERTIFICATE 

[            ], 2015 

The undersigned, the [title of officer] of Recro Pharma, Inc., a Pennsylvania corporation (the “Company”), hereby certifies,
with reference to (i) the Credit Agreement, dated as of March 7, 2015 (the “Credit Agreement”), between Recro Pharma LLC, as Borrower, and OrbiMed Royalty Opportunities II, LP, as Lender (in such capacity, the
“Lender”) and (ii) the Pledge and Security Agreement to be entered into on the Closing Date (as defined in the Credit Agreement) by the Company, among others, and the Lender, and after giving effect to the Acquisition and the
Merger (as each such term is defined in the Credit Agreement), to the Lender as follows: 
 1. Name. The exact legal
name of the Company as that name appears on its Articles of Incorporation is as follows: Recro Pharma, Inc. 
 2. Other
Identifying Factors. 
 (a) The following is the mailing address of the Company: 

490 Lapp Road, Malvern, PA 19355 

(b) If different from its mailing address, the Company’s place of business or, if more than one, its chief executive office is located at
the following address: 
  

					
	 Address
	  	 County
	  	 State

	None	  		  	

 (c) The following is the type of organization of the Company: Corporation 

(d) The following is the jurisdiction of the Company’s organization: Pennsylvania 

(e) The following is the Company’s state issued organizational identification number [state “None” if the state does not
issue such a number]: 3769102 
 (f) The following the Company’s federal employer tax identification number: 26-1523233 

3. Other Names, Etc. 

(a) The following is a list of all other names (including trade names or similar appellations) used by the Company, or any other business or
organization to which the Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years: None 

(b) Attached hereto as Schedule 3 is the information required in §2 for any other business or organization to which the
Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years: None 







 4. Other Current Locations.

(a) The following are all other locations in the United States of America in which the Company maintains any books or records relating to any
of the Collateral consisting of accounts, instruments, chattel paper, general intangibles or mobile goods: None 
  

					
	 Address
	  	 County
	  	 State



(b) The following are all other places of business of the Company in the United States of America: None 

 

					
	 Address
	  	 County
	  	 State



(c) The following are all other locations in the United States of America where any of the Collateral consisting of inventory or equipment is
located: None 
  

					
	 Address
	  	 County
	  	 State



(d) The following are the names and addresses of all persons or entities other than the Company, such as lessees, consignees, warehousemen or
purchasers of chattel paper, which have possession or are intended to have possession of any of the Collateral consisting of instruments, chattel paper, inventory or equipment: None 

 

							
	 Name
	  	 Mailing Address
	  	 County
	  	 State



5. Prior Locations.  

(a) Set forth below is the information required by §4(a) or (b) with respect to each location or place of business previously
maintained by the Company at any time during the past five years in a state in which the Company has previously maintained a location or place of business at any time during the past four months: 

 

					
	 Address
	  	 County
	  	 State

			
	 55 Valley Stream Parkway

Malvern, PA 19355
	  	Chester	  	PA








 (b) Set forth below is the information required by §4(c) or (d) with respect to each
other location at which, or other person or entity with which, any of the Collateral consisting of inventory or equipment has been previously held at any time during the past twelve months: 

None 
  

							
	 Name
	  	 Address
	  	 County
	  	 State



6. Fixtures. Attached hereto as Schedule 6 is the information required by UCC §9-502(b) or former UCC
§9-402(5) of each state in which any of the Collateral consisting of fixtures are or are to be located and the name and address of each real estate recording office where a mortgage on the real estate on which such fixtures are or are to be
located would be recorded. 
 7. Intellectual Property. 

Attached hereto as Schedule 7 is a complete list of all United States and foreign patents, copyrights, trademarks, trade
names and service marks registered or for which applications are pending in the name of the Company. 
 8. Securities;
Instruments. Attached hereto as Schedule 8 is a complete list of all stocks, bonds, debentures, notes and other securities and investment property owned by the Company (provide name of issuer, a description of security
and value). 
 9. Motor Vehicles. The following is a complete list of all motor vehicles owned by the Company
(describe each vehicle by make, model and year and indicate for each the state in which registered and the state in which based): None 
  

					
	 Vehicle
	  	 State of Registration
	  	 State in Which Based



10. Other Titled Collateral. The following is a complete list of aircraft and boats and all other inventory, equipment and
other goods of the Company which are subject to any certificate of title or other registration statute of the United States, any state or any other jurisdiction (provide description of covered goods and indicate registration system and
jurisdiction): None 
  

					
	 Goods
	  	 Registration System
	  	 Jurisdiction









 11. Bank Accounts. The following is a complete list of all bank accounts
(including securities and commodities accounts) maintained by the Company (provide name and address of depository bank, type of account and account number): 
  

							
	 Depository Bank
	  	Bank Address	  	 Type of Account
	  	 Acct. No.

	PNC Bank, National Association	  	 Hamilton Street branch
 1200 West Main
Street
 Morristown, PA 19401
 610-292-2071
	  	Checking	  	[***]
				
	PNC Bank, National Association	  	 Hamilton Street branch
 1200 West Main
Street
 Morristown, PA 19401
 610-292-2071
	  	Sweep	  	[***]
				
	State Street Bank and Trust Company	  	 State Street Global Services
 Wealth Manager
Services
 Attn: Melissa Johns
 1200 Crown Colony Drive

CC1/2
 Quincy, MA 02169

617-537-3181
	  	Cash Equivalents	  	[***]

 12. Unusual Transactions. Except for those purchases, acquisitions and other transactions
described on Schedule 3 or on Schedule 12 attached hereto, all of the Collateral has been originated by the Company in the ordinary course of the Company’s business or consists of goods which have been acquired by the Company
in the ordinary course from a person in the business of selling goods of that kind. 
 13. Commercial Tort Claims. Attached
hereto as Schedule 13 is a brief written description of each and every commercial tort claim which the Company holds. 
 REMAINDER OF
PAGE INTENTIONALLY LEFT BLANK 
 SIGNATURE PAGE FOLLOWS 
  

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 







 IN WITNESS WHEREOF, the undersigned has hereunto signed this Perfection Certificate as of
the date first written above. 
  

					
	RECRO PHARMA, INC.
		
	By:		  

			Name:		
			Title:		









 SCHEDULE 3 

NONE 







 SCHEDULE 6 

NONE 







 SCHEDULE 7 

INTELLECTUAL PROPERTY 
 PATENTS AND PATENT
APPLICATIONS 
  

													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 








													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-2- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-3- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-4- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-5- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-6- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-7- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-8- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-9- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-10- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-11- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-12- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-13- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-14- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-15- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-16- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-17- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-18- 









													
	 Patent Number if
Applicable
	  	 Country
	  	 Application
Number
	  	 Patent

Expiration Date
	  	 Owner
 prior to

Acquisition

and Merger
	  	 Owner
 after

Acquisition

and Merger
	  	 License
Agreement

(if applicable)

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-19- 








 TRADEMARKS 
  

									
	 Trademark
	  	 Country
	  	 Registration Number/
Application Number
	  	 Owner
	  	 License Agreement (if
applicable)

	RECRO PHARMA	  	US	  	86471197	  	Recro Pharma, Inc.	  	N/A
	INADEX	  	US	  	86457271	  	Recro Pharma, Inc.	  	N/A
	RELIXED	  	US	  	86457272	  	Recro Pharma, Inc.	  	N/A
	XEDANX	  	US	  	86457274	  	Recro Pharma, Inc.	  	N/A


  
 -20- 








 SCHEDULE 8 

Prior to consummation of the Acquisition and the Merger, the Company owns 100% of the limited liability company interests of Recro Pharma LLC, a Delaware
limited liability company. 
 From and after consummation of the Acquisition and the Merger, the Company will own 100% of the limited liability company
interests of Recro Gainesville LLC, a Massachusetts limited liability company, and Recro Gainesville LLC will own 100% of the limited liability company interests of Newco (as defined in the Credit Agreement). 

The Company also maintains the following money market account with State Street Bank and Trust Company with a current balance of approximately [***]: 

 

							
	State Street Bank and Trust Company		 State Street Global Services
 Wealth Manager
Services
 Attn: Melissa Johns
 1200 Crown Colony Drive

CC1/2
 Quincy, MA 02169

617-537-3181
		Cash Equivalents		[***]

  
 [***] Certain information in this document has been
omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 







 SCHEDULE 12 

NONE 







 SCHEDULE 13 

NONE 







 EXHIBIT J 

FORM OF PERFECTION CERTIFICATE FOR RECRO PHARMA LLC 

PERFECTION CERTIFICATE 

March 7, 2015 
 The
undersigned, the [title of officer] of Recro Pharma LLC, a Delaware limited liability company (the “Company”), hereby certifies, with reference to (i) the Credit Agreement, dated as of March 7, 2015 (the “Credit
Agreement”), between the Company, as Borrower, and OrbiMed Royalty Opportunities II, LP, as Lender (in such capacity, the “Lender”) and (ii) the Pledge and Security Agreement to be entered into on the Closing Date (as
defined in the Credit Agreement) by the Company, among others, and the Lender, and after giving effect to the Acquisition and the Merger (as each such term is defined in the Credit Agreement), to the Lender as follows: 

1. Name. The exact legal name of the Company as that name appears on its Articles of Incorporation is as follows: Recro Pharma
LLC 
 2. Other Identifying Factors. 

(a) The following is the mailing address of the Company: 

490 Lapp Road, Malvern, PA 19355 

(b) If different from its mailing address, the Company’s place of business or, if more than one, its chief executive office is located at
the following address: 
  

					
	 Address
	  	 County
	  	 State

	 None
	  		  	

 (c) The following is the type of organization of the Company: limited liability company 

(d) The following is the jurisdiction of the Company’s organization: Delaware 

(e) The following is the Company’s state issued organizational identification number [state “None” if the state does not
issue such a number]: 5704044 
 (f) The following the Company’s federal employer tax identification number: [Not yet obtained]

 3. Other Names, Etc. 

(a) The following is a list of all other names (including trade names or similar appellations) used by the Company, or any other business or
organization to which the Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years: None 

(b) Attached hereto as Schedule 3 is the information required in §2 for any other business or organization to which the Company
became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years: None 







 4. Other Current Locations.

(a) The following are all other locations in the United States of America in which the Company maintains any books or records relating to any
of the Collateral consisting of accounts, instruments, chattel paper, general intangibles or mobile goods: None 
  

					
	 Address
	  	 County
	  	 State

		  		  	

 (b) The following are all other places of business of the Company in the United States of America: None

  

					
	 Address
	  	 County
	  	 State

		  		  	

 (c) The following are all other locations in the United States of America where any of the Collateral
consisting of inventory or equipment is located: None 
  

					
	 Address
	  	 County
	  	 State

		  		  	

 (d) The following are the names and addresses of all persons or entities other than the Company, such as
lessees, consignees, warehousemen or purchasers of chattel paper, which have possession or are intended to have possession of any of the Collateral consisting of instruments, chattel paper, inventory or equipment: None 

 

							
	 Name
	  	 Mailing Address
	  	 County
	  	 State

		  		  		  	

 5. Prior Locations.  

(a) Set forth below is the information required by §4(a) or (b) with respect to each location or place of business previously
maintained by the Company at any time during the past five years in a state in which the Company has previously maintained a location or place of business at any time during the past four months: None 

 

					
	 Address
	  	 County
	  	 State

		  		  	








 (b) Set forth below is the information required by §4(c) or (d) with respect to each
other location at which, or other person or entity with which, any of the Collateral consisting of inventory or equipment has been previously held at any time during the past twelve months: 

None 
  

							
	 Name
	  	 Address
	  	 County
	  	 State

		  		  		  	

 6. Fixtures. Attached hereto as Schedule 6 is the information required by UCC
§9-502(b) or former UCC §9-402(5) of each state in which any of the Collateral consisting of fixtures are or are to be located and the name and address of each real estate recording office where a mortgage on the real estate on which such
fixtures are or are to be located would be recorded. 
 7. Intellectual Property. 

Attached hereto as Schedule 7 is a complete list of all United States and foreign patents, copyrights, trademarks, trade names and
service marks registered or for which applications are pending in the name of the Company. 
 8. Securities;
Instruments. Attached hereto as Schedule 8 is a complete list of all stocks, bonds, debentures, notes and other securities and investment property owned by the Company (provide name of issuer, a description of security and
value). 
 9. Motor Vehicles. The following is a complete list of all motor vehicles owned by the Company
(describe each vehicle by make, model and year and indicate for each the state in which registered and the state in which based): None 
  

					
	 Vehicle
	  	 State of Registration
	  	 State in Which Based

		  		  	

 10. Other Titled Collateral. The following is a complete list of aircraft and boats and all
other inventory, equipment and other goods of the Company which are subject to any certificate of title or other registration statute of the United States, any state or any other jurisdiction (provide description of covered goods and indicate
registration system and jurisdiction): None 
  

					
	 Goods
	  	 Registration System
	  	 Jurisdiction

		  		  	








 11. Bank Accounts. The following is a complete list of all bank accounts
(including securities and commodities accounts) maintained by the Company (provide name and address of depository bank, type of account and account number): None 

12. Unusual Transactions. Except for those purchases, acquisitions and other transactions described on Schedule 3 or
on Schedule 12 attached hereto, all of the Collateral has been originated by the Company in the ordinary course of the Company’s business or consists of goods which have been acquired by the Company in the ordinary course from a
person in the business of selling goods of that kind. 
 13. Commercial Tort Claims. Attached hereto as Schedule 13
is a brief written description of each and every commercial tort claim which the Company holds. 
 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

 SIGNATURE PAGE FOLLOWS 







 IN WITNESS WHEREOF, the undersigned has hereunto signed this Perfection Certificate as of
the date first written above. 
  

					
	RECRO PHARMA LLC
		
	By:		  

			  Name:		
			  Title:		









 SCHEDULE 3 

NONE 







 SCHEDULE 6 

NONE 







 SCHEDULE 7 

INTELLECTUAL PROPERTY 
 NONE 







 SCHEDULE 8 

NONE 







 SCHEDULE 12 

The following transactions will be consummated on the Closing Date: 
  

	 	•	 	The Acquisition 

  

	 	•	 	The Merger 








 SCHEDULE 13 

NONE 







 EXHIBIT K 

FORM OF 

PERFECTION CERTIFICATE FOR SURVIVING ENTITY 

[            ], 2015 

The undersigned, the [title of officer] of Recro Gainesville LLC, a Massachusetts limited liability company (the “Company”),
hereby certifies, with reference to (i) the Credit Agreement, dated as of March 7, 2015 (the “Credit Agreement”), between Recro Pharma LLC, as Borrower, and OrbiMed Royalty Opportunities II, LP, as Lender (in such
capacity, the “Lender”) and (ii) the Pledge and Security Agreement dated as of [            ], 2015, by the Company, among others, and the Lender, and after giving
effect to the Acquisition and the Merger (as each such term is defined in the Credit Agreement), to the Lender as follows: 

1. Name. The exact legal name of the Company as that name appears on its Certificate of Organization, as amended, is
as follows: 
 Recro Gainesville LLC 

2. Other Identifying Factors. 

(a) The following is the mailing address of the Company: 

490 Lapp Road, Malvern, PA 19355 

(b) If different from its mailing address, the Company’s place of business or, if more than one, its chief executive office is located at
the following address: 
  

					
	 Address
	  	 County
	  	 State

	 1300 Gould Drive

Gainesville, GA 30504
	  	Hall	  	GA

 (c) The following is the type of organization of the Company: 

Limited liability company 
 (d)
The following is the jurisdiction of the Company’s organization: 
 Massachusetts 

(e) The following is the Company’s state issued organizational identification number: 001060184 

(f) The following the Company’s federal employer tax identification number: 

[04-2903487]1 
  

 

	1 	To be confirmed whether will be this number after Acquisition and Merger. 








 3. Other Names, Etc. 

(a) The following is a list of all other names (including trade names or similar appellations) used by the Company, or any other business or
organization to which the Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years: 

 

	 	•	 	Alkermes Gainesville LLC 

  

	 	•	 	Recro Pharma LLC 

  

	 	•	 	Elan Holdings, LLC 

  

	 	•	 	Elan Holdings, Inc. 

 (b) Attached hereto as Schedule 3 is the information required in
§2 for any other business or organization to which the Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years: 

4. Other Current Locations.

(a) The following are all other locations in the United States of America in which the Company maintains any books or records relating to any
of the Collateral consisting of accounts, instruments, chattel paper, general intangibles or mobile goods: None 
  

					
	 Address
	  	 County
	  	 State

		  		  	
		  		  	
		  		  	
		  		  	

 b) The following are all other places of business of the Company in the United States of America: None

  

					
	 Address
	  	 County
	  	 State

		  		  	
		  		  	
		  		  	

 (c) The following are all other locations in the United States of America where any of the Collateral
consisting of inventory or equipment is located: None 
  

					
	 Address
	  	 County
	  	 State

		  		  	








 (d) The following are the names and addresses of all persons or entities other than the Company,
such as lessees, consignees, warehousemen or purchasers of chattel paper, which have possession or are intended to have possession of any of the Collateral consisting of instruments, chattel paper, inventory or equipment: 

 

							
	 Name
	  	 Mailing Address
	  	 County
	  	 State

	 Adams Data

Management
	  	 [1846 Montreal Road

Tucker, GA 30084]
	  	DeKalb	  	GA
	 Access Information Management
	  	 [795 Georgia Avenue

Gainesville, GA]
	  	Hall	  	GA

 5. Prior Locations.  

(a) Set forth below is the information required by §4(a) or (b) with respect to each location or place of business previously
maintained by the Company at any time during the past five years in a state in which the Company has previously maintained a location or place of business at any time during the past four months: 

 

					
	 Address
	  	 County
	  	 State

	 852 Winter Street

Waltham, MA 02451
	  	Middlesex	  	MA
			
	 825 Winter Street

Waltham, MA 02451
	  	 Middlesex
	  	 MA

			
	 c/o National Registered Agents, Inc.,

303 Congress Street

Boston, MA 02210
	  	 Suffolk
	  	 MA


 (b) Set forth below is the information required by §4(c) or (d) with respect to each other location
at which, or other person or entity with which, any of the Collateral consisting of inventory or equipment has been previously held at any time during the past twelve months: 
  


							
	 Name
	  	 Address
	  	 County
	  	 State

		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	








 6. Fixtures. Attached hereto as Schedule 6 is the information
required by UCC §9-502(b) or former UCC §9-402(5) of each state in which any of the Collateral consisting of fixtures are or are to be located and the name and address of each real estate recording office where a mortgage on the real
estate on which such fixtures are or are to be located would be recorded. 
 7. Intellectual Property. 

Attached hereto as Schedule 7 is a complete list of all United States and foreign patents, copyrights, trademarks, trade names and
service marks registered or for which applications are pending in the name of the Company. 
 8. Securities;
Instruments. Attached hereto as Schedule 8 is a complete list of all stocks, bonds, debentures, notes and other securities and investment property owned by the Company (provide name of issuer, a description of security
and value). 
 9. Motor Vehicles. The following is a complete list of all motor vehicles owned by
the Company (describe each vehicle by make, model and year and indicate for each the state in which registered and the state in which based):  
  

											
	 Vehicle
	  	 	  	State of 
Registration	 	  	State in Which Based	 
	 2004
	  	Chevrolet Astro Van	  	 	[    	] 	  	 	GA	  
	 2007
	  	Kawasaki KAF620E7F	  	 	[    	] 	  	 	GA	  
	 2006
	  	Ford F550 Medium Truck	  	 	[    	] 	  	 	GA	  
	 2007
	  	Ford F-150 XL	  	 	[    	] 	  	 	GA	  

 10. Other Titled Collateral. The following is a complete list of aircraft and boats and all other
inventory, equipment and other goods of the Company which are subject to any certificate of title or other registration statute of the United States, any state or any other jurisdiction (provide description of covered goods and indicate
registration system and jurisdiction): None 
  

					
	 Goods
	  	 Registration System
	  	 Jurisdiction

		  		  	

 11. Bank Accounts. The following is a complete list of all bank accounts (including
securities and commodities accounts) maintained by the Company (provide name and address of depository bank, type of account and account number): 
  

							
	 Depository Bank
	  	 Bank Address
	  	 Type of Account
	  	 Acct. No.

	 Bank of America
	  	 200 Meeting Street
 Charleston, SC
29401
	  	Operating Acct	  	 [***]

	 Bank of America
	  	 200 Meeting Street
 Charleston, SC
29401
	  	 Controlled
 Disbursements Acct
	  	 [***]

	 Bank of America
	  	 200 Meeting Street
 Charleston, SC
29401
	  	Payroll Acct	  	 [***]


  
 [***] Certain information in this document has been
omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 







 12. Unusual Transactions. Except for those purchases, acquisitions and
other transactions described on Schedule 3 or on Schedule 12 attached hereto, all of the Collateral has been originated by the Company in the ordinary course of the Company’s business or consists of goods which have been acquired by the
Company in the ordinary course from a person in the business of selling goods of that kind. 
 13. Commercial Tort
Claims. Attached hereto as Schedule 13 is a brief written description of each and every commercial tort claim which the Company holds. 

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK 







 IN WITNESS WHEREOF, the undersigned has hereunto signed this Perfection Certificate as of
the date first written above. 
  

					
	RECRO GAINESVILLE LLC
		
	 By:
		  

			   Name:
		
			   Title:
		









 SCHEDULE 3 

Name: Alkermes Gainesville LLC 
 Mailing Address: 852 Winter
Street, Waltham, MA 02541 
 Type of Organization: Limited Liability Company 

Organizational ID: 001060184 
 Federal Employer Tax ID:
04-2903487 
 Name: Recro Pharma LLC 
 Mailing Address: 490
Lapp Road, Malvern, PA 19355 
 Type of Organization: Limited Liability Company 

Organizational ID: 5704044 
 Federal Employer Tax ID: [To Be
Obtained] 
 Name: Elan Holdings, LLC 
 Mailing Address: c/o
National Registered Agents, Inc., 303 Congress Street, Boston, MA 02210 
 Type of Organization: Limited Liability Company 

Organizational ID: 001060184 
 Federal Employer Tax ID:
04-2903487 
 Name: Elan Holdings, Inc. 
 Mailing Address: c/o
National Registered Agents, Inc., 303 Congress Street 
 Boston, MA 02210 

Type of Organization: Corporation 
 Organizational ID: 001060184

 Federal Employer Tax ID: 04-2903487 







 SCHEDULE 6 

[To Be Reviewed After Survey] 
 Tract I: 

All that tract or parcel of land lying and being in Land Lot 16 and 17 of the 8th Land District, Hall
County, Georgia, consisting of a total of 133.85 acres and being all of Tract I consisting of a 123.40 acres, Tract II consisting of 4.49 acres and Tract III consisting of 5.96 acres all as described on a survey for Elan Pharmaceutical Research
Corp. by Farley-Collins & Associates, registered surveyor, dated October 21, 1976, and last revised on February 25, 1982, recorded in Plat Book 85, page 205-205, Hall County, Georgia Plat Records. Reference to said plat and the
record thereof is hereby made for a more complete description of said property. 
 Tract II: 

All that tract or parcel of land lying and being in Land Lot 17 of the 8th Land District, Hall County,
Georgia, consisting of 16,251 acres and being more particularly described according to a survey for Elan Pharmaceutical Research Corp. by Henry Bailey, registered surveyor, dated February 24, 1982, recorded in Plat Book 85, page 206, Half
County, Georgia Plat Records. Reference to said plat end the record thereof is hereby made for a more complete description of said property. 
 Tract III:

 All that tract or parcel of land lying and being in Land Lot 15 of the 8th Land District, Hall
County, Georgia, consisting of .44 acres and being more particularly described according to a survey for O.E. Floyd by B. Lamar Floyd & Associates, registered surveyors, dated September 14, 1979, and being more particularly described
according to said plat as follows: 
 Beginning at a point located at the intersection of the north side of the right of way of McEver Road Extension with
the northwest side of the right of way of Gould Road; thence along the right of way of the said McEver Road Extension north 86 degrees 38 minutes 32 seconds west 79.92 feet to an Iron pin; thence continuing along said right of way north 02 degrees
58 minutes 48 seconds west 80.68 feet to a rock located on the northern boundary of Land Lot 15; thence along the northern boundary of said Land Lot 15 north 60 degrees 11 minutes 27 seconds east 275.86 feet to a point located on the northwest side
of the right of way of Gould Road; thence along the right of way of the said Gould Road south 34 degrees 56 minutes 32 seconds west 271.29 feet to a point located at the Intersection of the north side of the right of way of McEver Road Extension
with the northwest side of the right of way of Gould Road, the point of beginning. 







 Less and except: 

All that tract or parcel of land lying and being in Land Lot 16 of the 8th Land District of Hall County,
Georgia and being described as follows: 
 Beginning at the corner common to Land Lots 5, 6, 15 and 16; thence running along the Land Lot line lying between
Land Lot 5 and Land Lot 16 North 29 degrees 56 minutes West 70.00 feet to a point; thence running South 59 degrees 22 minutes West 351.25 feet, more or less, to a point on the easterly right of way of Gould Road; thence running along said right of
way South 18 degrees 00 minutes East 71.48 feet, more or less, to an iron pin located at the Land Lot fine lying between Land Lot 15 and Land Lot 16; thence leaving said right of way and running along the Land Lot line lying between Land Lot 15 and
Land Lot 16 North 59 degrees 22 minutes East 363.96 feet to the corner common to Land Lots 5, 6, 15 and 16, which corner is the point of beginning. 

Further Less and except: 
 All that tract or parcel of land lying
and being in Land Lot 16, 8th Land District; Hall County, Georgia, containing 1.312 acres, and being more particularly described in Right of Way Deed from Elan Pharma (MA), Inc. n/k/a Elan
Holdings, Inc. to Department of Transportation, dated February 13, 2002, recorded in Deed Book 4165, page 645, Hall County, Georgia Deed Record 

  
 -2- 








 SCHEDULE 7 

None 







 SCHEDULE 8 

Prior to consummation of the Acquisition and the Merger, none. 

From and after consummation of the Acquisition and the Merger, the Company will own 100% of the limited liability company interests in Newco (as defined in
the Credit Agreement). 







 SCHEDULE 12 

The following transactions will be consummated on the Closing Date: 
  

	 	•	 	The Acquisition 

  

	 	•	 	The Merger 








 SCHEDULE 13 

None 







 EXHIBIT L 

FORM OF 

PERFECTION CERTIFICATE FOR NEWCO 

[            ], 2015 

The undersigned, the [title of officer] of [Newco LLC], a Delaware limited liability company (the “Company”), hereby
certifies, with reference to (i) the Credit Agreement, dated as of March 7, 2015 (the “Credit Agreement”), between Recro Pharma LLC, as Borrower, and OrbiMed Royalty Opportunities II, LP, as Lender (in such capacity, the
“Lender”) and (ii) the Pledge and Security Agreement dated as of [            ], 2015, by the Company, among others, and the Lender, and after giving effect to the
Acquisition and the Merger (as each such term is defined in the Credit Agreement), to the Lender as follows: 
 1.
Name. The exact legal name of the Company as that name appears on its Certificate of Organization, as amended, is as follows: 

[To Follow] 
 2. Other
Identifying Factors. 
 (a) The following is the mailing address of the Company: 

 

	 	•	 	490 Lapp Road, Malvern, PA 19355 

 (b) If different from its mailing address, the
Company’s place of business or, if more than one, its chief executive office is located at the following address: 
  

					
	 Address
	  	 County
	  	 State

			
	None	  		  	
		  		  	

 (c) The following is the type of organization of the Company: 

Limited liability company 
 (d)
The following is the jurisdiction of the Company’s organization: 
 Delaware 

(e) The following is the Company’s state issued organizational identification number: 

[To Follow] 
 (f) The following
the Company’s federal employer tax identification number: 
 [To Follow] 







 3. Other Names, Etc. 

(a) The following is a list of all other names (including trade names or similar appellations) used by the Company, or any other business or
organization to which the Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years: 

 

	 	•	 	Alkermes Science One Limited 

  

	 	•	 	Daravita Limited 

 (b) Attached hereto as Schedule 3 is the information required
in §2 for any other business or organization to which the Company became the successor by merger, consolidation, acquisition, change in form, nature or jurisdiction of organization or otherwise, now or at any time during the past five years:

 4. Other Current Locations.

(a) The following are all other locations in the United States of America in which the Company maintains any books or records relating to any
of the Collateral consisting of accounts, instruments, chattel paper, general intangibles or mobile goods: None 
  

					
	 Address
	  	 County
	  	 State

			
	    	  		  	
		  		  	

 (b) The following are all other places of business of the Company in the United States of America: None

  

					
	 Address
	  	 County
	  	 State

			
		  		  	
		  		  	
		  		  	

 (c) The following are all other locations in the United States of America where any of the Collateral
consisting of inventory or equipment is located: None 
  

					
	 Address
	  	 County
	  	 State

			
		  		  	
		  		  	
		  		  	








 (d) The following are the names and addresses of all persons or entities other than the Company,
such as lessees, consignees, warehousemen or purchasers of chattel paper, which have possession or are intended to have possession of any of the Collateral consisting of instruments, chattel paper, inventory or equipment: None 

 

							
	 Name
	  	 Mailing Address
	  	 County
	  	 State

				
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 5. Prior Locations. 

(a) Set forth below is the information required by §4(a) or (b) with respect to each location or place of business previously
maintained by the Company at any time during the past five years in a state in which the Company has previously maintained a location or place of business at any time during the past four months:  

 

					
	 Address
	  	 County
	  	 State

			
	 Connaught House

1 Burlington Rd

Dublin 4
	  	N/A	  	N/A
	 Ireland
	  		  	
		  		  	

 (b) Set forth below is the information required by §4(c) or (d) with respect to each other location
at which, or other person or entity with which, any of the Collateral consisting of inventory or equipment has been previously held at any time during the past twelve months: 

None 
  

							
	 Name
	  	 Address
	  	 County
	  	 State

				
		  		  		  	
		  		  		  	
		  		  		  	
		  		  		  	

 6. Fixtures. Attached hereto as Schedule 6 is the information required by UCC
§9-502(b) or former UCC §9-402(5) of each state in which any of the Collateral consisting of fixtures are or are to be located and the name and address of each real estate recording office where a mortgage on the real estate on which such
fixtures are or are to be located would be recorded. 







 7. Intellectual Property. 

Attached hereto as Schedule 7 is a complete list of all United States and foreign patents, copyrights, trademarks, trade
names and service marks registered or for which applications are pending in the name of the Company. 
 8. Securities;
Instruments. Attached hereto as Schedule 8 is a complete list of all stocks, bonds, debentures, notes and other securities and investment property owned by the Company (provide name of issuer, a description of security
and value). 
 9. Motor Vehicles. The following is a complete list of all motor vehicles owned by the Company (describe
each vehicle by make, model and year and indicate for each the state in which registered and the state in which based): None 
  

					
	 Vehicle
	  	 State of Registration
	  	 State in Which Based

			
		  		  	

 10. Other Titled Collateral. The following is a complete list of aircraft and boats and all other
inventory, equipment and other goods of the Company which are subject to any certificate of title or other registration statute of the United States, any state or any other jurisdiction (provide description of covered goods and indicate
registration system and jurisdiction): None 
  

					
	 Goods
	  	 Registration System
	  	 Jurisdiction

			
		  		  	

 11. Bank Accounts. The following is a complete list of all bank accounts (including
securities and commodities accounts) maintained by the Company (provide name and address of depository bank, type of account and account number): 

None 
  

							
	 Depository Bank
	  	 Bank Address
	  	 Type of Account
	  	 Acct. No.

				
		  		  		  	

 12. Unusual Transactions. Except for those purchases, acquisitions and other transactions
described on Schedule 3 or on Schedule 12 attached hereto, all of the Collateral has been originated by the Company in the ordinary course of the Company’s business or consists of goods which have been acquired
by the Company in the ordinary course from a person in the business of selling goods of that kind. 







 13. Commercial Tort Claims. Attached hereto as Schedule 13 is a brief
written description of each and every commercial tort claim which the Company holds. 
 REMAINDER OF PAGE INTENTIONALLY LEFT BLANK








 IN WITNESS WHEREOF, the undersigned has hereunto signed this Perfection Certificate as of
the date first written above. 
  

			
	[NEWCO] LLC
		
	By:		  

			Name:
			Title:









 SCHEDULE 3 

Name: Daravita Limited 
 Mailing Address: Connaught House, 1
Burlington Road, Dublin 4 
 Type of Organization: Private Limited Company 

Organizational ID: 513920 
 Federal Employer Tax ID: N/A 

Name: Alkermes Science One Limited 
 Mailing Address: Connaught
House, 1 Burlington Road, Dublin 4 
 Type of Organization: Private Limited Company 

Organizational ID: 513920 
 Federal Employer Tax ID: N/A 







 SCHEDULE 6 

None 







 SCHEDULE 7 

Patents and Patent Application 
 Patents Directly Related to the
Asset and Liability Transfer 
 Transferred Patents 
  

											
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application

Number
	  	 Patent

Expiration Date
	  	 Owner prior to
Acquisition and
Merger
	  	 Owner after
Acquisition
and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

  

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has
been requested with respect to the omitted portions. 








											
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application

Number
	  	 Patent

Expiration Date
	  	 Owner prior to
Acquisition and
Merger
	  	 Owner after
Acquisition
and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-2- 









											
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application

Number
	  	 Patent

Expiration Date
	  	 Owner prior to
Acquisition and
Merger
	  	 Owner after
Acquisition
and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-3- 









											
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application

Number
	  	 Patent

Expiration Date
	  	 Owner prior to
Acquisition and
Merger
	  	 Owner after
Acquisition
and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-4- 









											
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application

Number
	  	 Patent

Expiration Date
	  	 Owner prior to
Acquisition and
Merger
	  	 Owner after
Acquisition
and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-5- 









											
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application

Number
	  	 Patent

Expiration Date
	  	 Owner prior to
Acquisition and
Merger
	  	 Owner after
Acquisition
and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-6- 








 Licensed Patents 

The following are each licensed from Alkermes Pharma Ireland Limited by way of the Intellectual Property Transfer and License Agreement, dated as of
May 8, 2014, as amended, between Alkermes Pharma Ireland Limited (“APIL”) and Daravita Limited (“Daravita”). Each of the applications or patents listed in this schedule are owned by APIL or related affiliate as
of the date hereof and after consummation of the Acquisition and Merger. 
  

													
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application
Number
	  	 Patent
 Expiration

Date
	  	 Owner
 prior to

and after
Acquisition

and Merger
	  	 Licensee
 prior
to
Acquisition
 and Merger
	  	 Licensee
 after

Acquisition

and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-7- 









													
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application
Number
	  	 Patent
 Expiration

Date
	  	 Owner
 prior to

and after
Acquisition

and Merger
	  	 Licensee
 prior
to
Acquisition
 and Merger
	  	 Licensee
 after

Acquisition

and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-8- 









													
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application
Number
	  	 Patent
 Expiration

Date
	  	 Owner
 prior to

and after
Acquisition

and Merger
	  	 Licensee
 prior
to
Acquisition
 and Merger
	  	 Licensee
 after

Acquisition

and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-9- 









													
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application
Number
	  	 Patent
 Expiration

Date
	  	 Owner
 prior to

and after
Acquisition

and Merger
	  	 Licensee
 prior
to
Acquisition
 and Merger
	  	 Licensee
 after

Acquisition

and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-10- 









													
	 Patent
 Number if

Applicable
	  	 Country
	  	 Application
Number
	  	 Patent
 Expiration

Date
	  	 Owner
 prior to

and after
Acquisition

and Merger
	  	 Licensee
 prior
to
Acquisition
 and Merger
	  	 Licensee
 after

Acquisition

and Merger

	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]	  	[***]

 Trademarks and Trademark Applications 

Transferred Trademarks 
  

									
	 Trademark
	  	 Country
	  	 Registration

Number/
 Application

Number
	  	 Owner prior to

Acquisition and

Merger
	  	 Owner after

Acquisition

and Merger

	VERELAN	  	US	  	1551582/73760372	  	ELAN PHARMA INTERNATIONAL	  	NEWCO
	VERELAN	  	Canada	  	TMA442175/670059	  	ELAN PHARMA INTERNATIONAL	  	NEWCO
	VERELAN	  	South Korea	  	185322/185382	  	ELAN PHARMA INTERNATIONAL	  	NEWCO
	VERELAN	  	Taiwan	  	1367514/97047657	  	ELAN PHARMA INTERNATIONAL	  	NEWCO


  
 [***] Certain information in this
document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions. 

-11- 








 Licensed Trademarks 
  

													
	 Trademark
	  	 Country
	  	 Registration Number/

Application Number
	  	 Owner prior to and
after Acquisition
and Merger
	  	 Licensee prior
to Acquisition
and Merger
	  	 Licensee after
Acquisition
and Merger
	  	 License
Agreement (if
applicable)

	BEADTEK	  	US	  	86452063	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended between Alkermes Pharma Ireland Limited & Daravita Limited
	NANOCRYSTAL	  	US	  	2492925/75425869	  	Elan Pharma International Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended between Alkermes Pharma Ireland Limited & Daravita Limited
	NANOCRYSTAL	  	US	  	2386089/75425872	  	Elan Pharma International Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited


  
 -12- 









													
	 Trademark
	  	 Country
	  	 Registration Number/

Application Number
	  	 Owner prior to and
after Acquisition
and Merger
	  	 Licensee prior
to Acquisition
and Merger
	  	 Licensee after
Acquisition
and Merger
	  	 License
Agreement (if
applicable)

	NANOCRYSTAL	  	Canada	  	TMA504715/732238	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited
	NANOCRYSTAL	  	European Union	  	000885073/000885079	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited


  
 -13- 









													
	 Trademark
	  	 Country
	  	 Registration Number/

Application Number
	  	 Owner prior to and
after Acquisition
and Merger
	  	 Licensee prior
to Acquisition
and Merger
	  	 Licensee after
Acquisition
and Merger
	  	 License
Agreement (if
applicable)

	NANOCRYSTAL	  	Japan	  	4398178/6382298	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited
	NANOCRYSTAL	  	Japan	  	4374459/H10-071844	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended , between Alkermes Pharma Ireland Limited & Daravita Limited


  
 -14- 









													
	 Trademark
	  	 Country
	  	 Registration Number/

Application Number
	  	 Owner prior to and
after Acquisition
and Merger
	  	 Licensee prior
to Acquisition
and Merger
	  	 Licensee after
Acquisition
and Merger
	  	 License
Agreement (if
applicable)

	NANOCRYSTAL	  	Japan	  	4428472/105670199	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited
	SODAS	  	US	  	2794607/78127040	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited


  
 -15- 









													
	 Trademark
	  	 Country
	  	 Registration Number/

Application Number
	  	 Owner prior to and
after Acquisition
and Merger
	  	 Licensee prior
to Acquisition
and Merger
	  	 Licensee after
Acquisition
and Merger
	  	 License
Agreement (if
applicable)

	SODAS	  	Argentina	  	1724388/2058068	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited
	SODAS	  	Canada	  	TMA531496/1006507	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited
	SODAS	  	European Union	  	0002012953/0002012953	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited


  
 -16- 









													
	 Trademark
	  	 Country
	  	 Registration Number/

Application Number
	  	 Owner prior to and
after Acquisition
and Merger
	  	 Licensee prior
to Acquisition
and Merger
	  	 Licensee after
Acquisition
and Merger
	  	 License
Agreement (if
applicable)

	SODAS	  	Ireland	  	125699/329087	  	Alkermes Pharma Ireland Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, between Alkermes Pharma Ireland Limited & Daravita Limited
	CODAS	  	US	  	3591236/78538974	  	Elan Pharma International Limited	  	Daravita	  	Newco	  	Intellectual Property Transfer and License Agreement, dated as of May 8, 2014, and as amended, between Alkermes Pharma Ireland Limited & Daravita Limited


  
 -17- 








 SCHEDULE 8 

None 







 SCHEDULE 12 

The following transactions will be consummated prior to the Closing Date: 
  

	 	•	 	The Asset and Liability Transfer 

 The following transactions will be consummated on the Closing Date: 

 

	 	•	 	The Acquisition 

  

	 	•	 	The Merger 








 SCHEDULE 13 

 

	 	•	 	[Daravita received a notice of certification pursuant to Section 505(j)(2)(B)(iv) of the Federal Food, Drug and Cosmetic Act and Section 314.95 of the Food and Drug Administration Regulations, dated
August 12, 2014, from Actavis Laboratories FL, Inc. with respect to U.S. Patent No. 6,902,742 and U.S. Patent No. 6,228,398 owned by Daravita and the New Drug Application for Zohydro ER held by Zogenix, Inc. On September 3, 2014,
Daravita filed suit in the United States District Court for the District of Delaware against Actavis Laboratories FL, Inc. and certain of its affiliates with respect to this matter: Daravita Limited V. Actavis Laboratories FL Inc. Case
No. 1:14-cv-01118-GMS] 

  

	 	•	 	[Daravita received a notice of certification pursuant to Section 505(j)(2)(B)(ii) of the Federal Food, Drug and Cosmetic Act, dated September 26, 2014, from Alvogen Pine Brook, Inc. with respect to U.S. Patent
No. 6,902,742 and U.S. Patent No. 6,228,398 owned by Daravita and the New Drug Application for Zohydro ER held by Zogenix, Inc. On November 7, 2014, Daravita filed suit in the United States District Court for the District of Delaware
against Alvogen Pine Brook, Inc. with respect to this matter: Daravita Limited V. Alvogen Pine Brook, Inc. Case No. 1:14-cv-01364-GMS] 








 EXHIBIT M 

FORMS OF TAX CERTIFICATES 
 EXHIBIT
M-1 
 FORM OF 
 U.S. TAX
COMPLIANCE CERTIFICATE 
 (For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement dated as of March 7, 2015 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and between RECRO PHARMA LLC, a Delaware limited liability company (the “Borrower”), and ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates,
successors, transferees and assignees, the “Lender”). 
 Pursuant to the provisions of Section 4.3 of the Credit Agreement,
the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the
meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the
Borrower as described in Section 881(c)(3)(C) of the Code. 
 The undersigned has furnished the Administrative Agent and the Borrower
with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform
the Borrower, and (2) the undersigned shall have at all times furnished the Borrower with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either
of the two calendar years preceding such payments. 
 Unless otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement. 
  

			
	[NAME OF LENDER]
		
	By:		  

			  Name:
			  Title:

 Date:                  ,
20[    ] 







 EXHIBIT M-2 

FORM OF 
 U.S. TAX COMPLIANCE
CERTIFICATE 
 (For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement dated as of March 7, 2015 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and between RECRO PHARMA LLC, a Delaware limited liability company (the “Borrower”), and ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates,
successors, transferees and assignees, the “Lender”). 
 Pursuant to the provisions of Section 4.3 of the Credit Agreement,
the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the
Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a controlled foreign corporation related to the Borrower as described in
Section 881(c)(3)(C) of the Code]. 
 The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person
status on IRS Form W-8BEN or W-8BEN-E. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing, and (2) the
undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar years
preceding such payments. 
 Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the meanings
given to them in the Credit Agreement. 
  

			
	[NAME OF PARTICIPANT]
		
	By:		  

			  Name:
			  Title:

 Date:              , 20[    ] 

  
 -2- 








 EXHIBIT M-3 

FORM OF 
 U.S. TAX COMPLIANCE
CERTIFICATE 
 (For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement dated as of March 7, 2015 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and between RECRO PHARMA LLC, a Delaware limited liability company (the “Borrower”), and ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates,
successors, transferees and assignees, the “Lender”). 
 Pursuant to the provisions of Section 4.3 of the Credit Agreement,
the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such
participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or
business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and
(v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its
partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E from each of such partner’s/member’s beneficial
owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and
(2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two calendar
years preceding such payments. 
 Unless otherwise defined herein, terms defined in the Credit Agreement and used herein shall have the
meanings given to them in the Credit Agreement. 
  

			
	[NAME OF PARTICIPANT]
		
	By:		  

			  Name:
			  Title:

 Date:              , 20[    ] 

  
 -3- 








 EXHIBIT M-4 

FORM OF 
 U.S. TAX COMPLIANCE
CERTIFICATE 
 (For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes) 

Reference is hereby made to the Credit Agreement dated as of March 7, 2015 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), by and between RECRO PHARMA LLC, a Delaware limited liability company (the “Borrower”), and ORBIMED ROYALTY OPPORTUNITIES II, LP, a Delaware limited partnership (together with its Affiliates,
successors, transferees and assignees, the “Lender”). 
 Pursuant to the provisions of Section 4.3 of the Credit Agreement,
the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are
the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Loan Document, neither the undersigned nor any of its
direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or
indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the
Borrower as described in Section 881(c)(3)(C) of the Code. 
 The undersigned has furnished the Borrower with IRS Form W-8IMY
accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN or W-8BEN-E from
each of such partner’s/member’s beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform the Borrower, and (2) the undersigned shall have at all times furnished the Borrower with a properly completed and currently effective certificate in either the calendar year in which each payment is to be
made to the undersigned, or in either of the two calendar years preceding such payments. 
 Unless otherwise defined herein, terms defined
in the Credit Agreement and used herein shall have the meanings given to them in the Credit Agreement. 
  

			
	[NAME OF LENDER]
		
	By:		  

			  Name:
			  Title:

 Date:              , 20[    ] 

  
 -4-