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EXECUTION COPY

|                        
|------------------------
|ASSET PURCHASE AGREEMENT
|                        
|between                 
|                        
|NOVARTIS PHARMA AG      
|                        
|AND                     
|                        
|                        
|MERUS LABS LUXCO SARL   
|                        

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Table of Contents

|1.  | Definitions
      and Interpretation                                         | 2 
|--- | ---------------------------------------------------------------------------- | --
|    |                                                                              |   
|2.  | Sale
      and Transfer of Assets                                            | 9 
|    |                                                                              |   
|3.  | Grant
      of Licenses                                                      | 11
|    |                                                                              |   
|4.  | Assumed
      Liabilities and Excluded Liabilities                           | 11
|    |                                                                              |   
|5.  | Obligations
      of the Purchaser                                           | 12
|    |                                                                              |   
|6.  | Transition
      Services provided by Novartis                               | 13
|    |                                                                              |   
|7.  | Maintenance
      of Marketing Authorizations Pending Completion of Transfer | 14
|    |                                                                              |   
|8.  | Co-operation
      on Pharmacovigilance and Safety                           | 15
|    |                                                                              |   
|9.  | Purchase
      Price and Payment of Purchase Price                           | 15
|    |                                                                              |   
|10. | Closing                                                                      | 16
|    |                                                                              |   
|11. | Third
      Party Agreements                                                 | 18
|    |                                                                              |   
|12. | Novartis
      Representations and Warranties                               | 21
|    |                                                                              |   
|13. | Purchasers
      Representations and Warranties And Covenants               | 23
|    |                                                                              |   
|14. | Indemnification                                                              | 25
|    |                                                                              |   
|15. | [RESERVED]                                                                   | 27
|    |                                                                              |   
|16. | Confidentiality;
      Press Release; Data, Books and Records                | 27
|    |                                                                              |   
|17. | Miscellaneous                                                                | 29

|Annex 1 | Trademarks                                   
|------- | ---------------------------------------------
|Annex 2 | Patents                                      
|Annex 3 | Marketing
      Authorizations               
|Annex 4 | Drug Substance                               
|Annex 5 | Disclosures (by
      Novartis)              
|Annex 6 | Third Party Agreements                       
|Annex 7 | Template of
      Pharmacovigilance Agreement

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|Annex 8  | Territory                                             
|-------- | ------------------------------------------------------
|Annex 9  | Novartis Policies (NP4, CC3)                          
|Annex 10 | Data Room List                                        
|Annex 11 | Press Release at Closing                              
|Annex 12 | Template TM
      Assignment Document                 
|Annex 13 | Template Patent Assignment
      Document             
|Annex 14 | Template Domain
      Name Assignment Document        
|Annex 15 | Redacted Version of the Asset
      Purchase Agreement

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Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

ASSET PURCHASE AGREEMENT

This ASSET PURCHASE AGREEMENT (Agreement) is made as
of this 11th day of July, 2012 (Closing Date), by and between Novartis
Pharma AG a company organized under the laws of Switzerland and located at
Lichtstrasse 35, 4056 Basel, Switzerland (referred to as Novartis), and
Merus Labs Luxco SARL, a company organized under the laws of Luxembourg
(Purchaser), located at 208, Val des Bons Malades, Luxembourg L-2121,
The Grand Duchy of Luxembourg. Novartis and Purchaser are each referred to
individually as a Party and together as the Parties.

RECITALS

WHEREAS, Novartis and its Affiliates (as defined
below) acquired rights in the Product from *** pursuant to the Restated
Asset Purchase Agreement entered into between *** and Novartis
International Pharmaceuticals Ltd. and Novartis Pharma AG dated 17 March
2003;

WHEREAS Novartis and its Affiliates further
developed and sell, market, distribute, manufacture and commercialize, by
themselves or through third parties, the Product (as defined below) and the Drug
Substance (as defined below) in certain countries;

WHEREAS, Novartis desires to sell, transfer, and
convey to Purchaser, and the Purchaser desires to purchase from Novartis, the
Transferred Assets (as defined below) relating to the Product (other than the
Excluded Assets) in the Territory (as defined below), while Novartis and/or
other Third Parties (as applicable) retain the rights to the Drug Substance and
the Product outside the Territory, all upon the terms and subject to the
conditions hereinafter specified;

WHEREAS, Novartis and/or its Affiliates own
registered trademarks, patents and know-how exclusively related to the Product
in the Territory and they are willing to grant Purchaser certain rights to such
intellectual property as set forth herein and in the License Agreement;

WHEREAS, Novartis owns certain know-how and
technology related to the Product and Drug Substance and is willing to grant a
license to such know-how and technology to Purchaser as set forth in the License
Agreement; and

WHEREAS, Novartis is willing to provide certain
services involving the supply of the Product and Drug Substance in the Territory
and certain other assistance for a Transition Period (as defined below) as set
forth in this Agreement and the Supply Agreement.

NOW, THEREFORE, the Parties hereby agree as follows:

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|1.  | Definitions and Interpretation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|1.1 | Definitions.For the purpose of this Agreement,
      the following terms shall have the following meanings:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Accounting Standards means the IFRS
      (International Financial Reporting Standards) as generally and
      consistently applied throughout Novartis organisation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Adverse Event means any untoward medical
      occurrence in a patient or clinical investigation subject administered a
      pharmaceutical product and that does not necessarily have a causal
      relationship with the treatment. An adverse event can therefore be any
      unfavourable and unintended sign (including an abnormal laboratory
      finding), symptom, or disease temporally associated with the use of a
      medicinal product, whether or not related to the medicinal
  product.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Affiliate means, with respect to a Party, any
      Person that directly or indirectly controls, is controlled by, or is under
      common control with that Party. For the purpose of this definition,
      control, controls or controlled shall mean direct or indirect,
      ownership of fifty percent (50%) or more of the shares of stock entitled
      to vote for the election of directors, in the case of a corporation, or
      fifty percent (50%) or more of the equity interest in the case of any
      other type of legal entity, status as a general partner in any
      partnership, or any other arrangement whereby the entity or Person
      controls or has the right to control the board of directors or equivalent
      governing body of a corporation, or the ability to cause the direction of
      the management or policies of a corporation or other entity, or as
      otherwise set forth in the applicable International Financial Reporting
      Standards, as amended from time to time. In the case of entities organized
      under the laws of certain countries, the maximum percentage ownership
      permitted by Law for a foreign investor may be less than fifty percent
      (50%), and in such case such lower percentage shall be substituted in the
      preceding sentence, provided that such foreign investor has the power to
      direct the management and policies of such entity.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Assumed Liabilities shall have the meaning set
      forth in Clause 4.1.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Books and Recordsmeans all books, records,
      files, reports, plans and operating records in any form, in each case to
      the extent related to the Product, the Drug Substance, the Licensed Assets
      and/or the Transferred Assets in the Territory and in the possession or
      control of and reasonably accessible to Novartis as at the Closing
      Date.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    | Business means the right to develop, sell,
      market, distribute and commercialize the Product in the Territory in the
      Field and to manufacture or have manufactured the Product for the use in
      the Field for the Territory.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        

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Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

Business Day means a day
(other than a Saturday, Sunday or a public holiday) on which the banks are open
for business in Basel, Switzerland and Toronto, Ontario, Canada.

Closing or Closing
Date means the date first written above, subject to the provisions of
Clause 10.

Commercial Information means
***

Confidentiality Agreement
means the confidentiality agreement which Merus Labs International Inc., an
Affiliate of Purchaser and Novartis executed and delivered on January 18,
2012.

Data Roomshall mean the
electronic and hard copy data rooms that Novartis established to permit
Purchaser to conduct due diligence relating to the transactions contemplated by
the Agreement and as such data room exists at the Closing Date the table of
contents of which is listed on Annex 10 to this Agreement.

Domain names means the
following internet domain names and the websites located at such domain names:
(1) darifenacin.ch, emselex.ch, emselex.de and (2) emselex.ca, darifenacin.de,
enablex.de, enablex.ch and emselex.co.uk; it being understood and acknowledged
by the Parties, however, that although the domain names listed in (2) shall be
included as a Transferred Asset and assigned to Purchaser hereunder, they shall
be expressly excluded from any other representations or warranties of Novartis
hereunder that are applicable to the Domain Names listed in (1).

Domain Name Assignment
Documents shall have the meaning set forth in Clause 10.8.

Drug Substance means the
active ingredient(s) darifenacin hydrobromide contained in the Product, having
the chemical structure set forth in Annex 4.

Excluded Assets shall have the
meaning set forth in Clause 2.2.

Excluded Liabilities shall
have the meaning set forth in Clause 4.2.

Fieldmeans use in the
treatment of overactive bladder in humans.

Force Majeure means any event
which is beyond the reasonable control of the Party affected, including but not
limited to the following events: earthquake, storm, flood, fire or other acts of nature, epidemic, war,
riot, public disturbance, strike or lockouts, government actions, terrorist
attack or the like.

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Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

Governmental Entitymeans any
court, agency, authority, department, legislative or regulatory body or other
instrumentality of any government or country or of any national, federal, state,
provincial, regional, county, city or other political subdivision of any such
government or any supranational organization of which any such country is a
member or quasi-governmental authority or self-regulatory organization of
competent authority.

Indemnified Party shall have
the meaning set forth in Clause 15.3.

Indemnifying Party shall have
the meaning set forth in Clause 15.3.

Inventory means all stock of
raw materials, Drug Substance and/or Product that are solely and specifically
related to (and for use in) the Business and that are maintained, held, or
stored by or on behalf of Novartis and/or its Affiliates for use in the Field
and in the Territory.

Irrevocable Letter of Creditshall mean that certain irrevocable and unconditional standby letter of
credit from a reputable banking institution a draft of which shall have been
delivered to Novartis no later than five (5) days prior to Closing and the final
executed version of which shall be delivered to Novartis at Closing pursuant to
Clause 9.2.

Know-How means all existing
and available technical information, know-how and data, including ***

Lawmeans any statute, law,
ordinance, requirement, regulatory rule, code or order of a Governmental
Entity.

Letter of Intent means the
letter of intent executed and delivered by Merus Labs International Inc. and
Novartis dated June 1, 2012.

Liabilities means any and all
debts, liabilities, responsibilities, commitments, expenses and obligations, of
any nature or kind whether accrued or fixed, known or unknown, absolute or contingent, matured or not,
determined or determinable or otherwise, and whether due or to become due
including product liability, and, more generally, any liability arising under
any Law, action or governmental order and any liability arising under any
contract or undertaking.

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- 5 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

License Agreement means the
license agreement to be signed in connection with this Asset Purchase
Agreement.

Licensed Assets means the
Books and Records, Commercial Information, Medical Information (in each case
that does not constitute Transferred Assets), Know How and Manufacturing
Technology and that is related to the commercialization and/or manufacture of
the Product and/or Drug Substance in the Field in the Territory and in each case
that is in existence and owned by Novartis and/or its Affiliates or in which
Novartis and/or its Affiliates have a right to license as of the Closing
Date.

Loss means any and all direct
losses, including but not limited to damages, internal and external costs and
expenses including reasonable attorneys fees and expenses in connection with
any action, suit or proceeding, whether involving a Third Party claim or a claim
solely between the Parties.

Manufacturing Technology means
***

Marketing Authorizations or
MAs means the marketing authorizations or any equivalent regulatory
approvals listed in Annex 3for the Product in the Territory.

Marketing Authorization Data
means the existing and available dossiers containing the relevant Know-How used
by Novartis and/or its Affiliates to obtain and maintain the Marketing
Authorizations.

MA Transfer Date means, in
relation to each country of the Territory, the date upon which the relevant
Regulatory Authority approves and notifies the Marketing Authorization naming
the Purchaser or the Purchasers Affiliate or designee as the marketing
authorization holder.

Medical Information means any
medical or clinical information related to the Product and/or Drug Substance in
the Territory and in the Field including clinical and technical matters, such as
therapeutic uses for the approved indications, safety information, drug-disease
information, and other product characteristics.

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Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

Net Receivables shall have the
meaning set forth in Clause 2.2(c).

Novartis shall have the
meaning set forth in the Preamble.

Novartis Policiesshall mean
the policies and procedures of Novartis listed in Annex 9.

PartyandPartiesshall have the meanings set forth in the Preamble.

Patent Assignment Documentsshall have the meaning set forth in Clause 10.7.

Patents means the patents and
patent applications relating to the Product which have been granted to or are
owned by Novartis and/or its Affiliates in any country of the Territory as
listed in Annex 2 and to the invention(s) disclosed therein (collectively
the Invention(s)) and any corresponding patent applications thereto in the
Territory, including any priority and parent applications thereto, along with an
assignment of rights to any substitutions, continuations, continuations-in-part,
extensions, divisionals, reissues, re-examinations, confirmations,
revalidations, registrations, patents of addition, supplementary protection
certificates and disclaimers thereto and any letters patent and registrations
that may issue, have issued, be granted or results therefrom for the
Invention(s) and any and all rights of priority resulting from the filing of the
above-identified applications, the said corresponding applications and any
previously filed applications in respect of the invention(s) under international
conventions, treaties or otherwise.

Person means any individual,
partnership, limited liability company, firm, corporation, association, trust,
unincorporated organization or other entity.

Phase 1 Period means the
period, on a country-by-country basis, from the Closing Date until the earlier
of:

| | (a) | ***
| | --- | ---
| |     |    
| | (b) | ***

Phase 2 Period means the
period, on a country-by-country basis, from the MA Transfer Date until the
earlier of:

| | (a) | ***
| | --- | ---
| |     |    
| | (b) | ***

Product means the product,
that includes the Drug Substance as the sole active ingredient and that is
marketed and sold by Novartis and its Affiliates under the Trademarks and the Marketing
Authorization(s) in the Territory and in the Field as of the Closing Date.

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- 7 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

Purchase Price shall have the
meaning set forth in Clause 9.1 below.

Purchaser shall have the
meaning set forth in the Preamble.

Regulatory Authority means any
governmental agency or authority responsible for granting Marketing
Authorizations, including, any licenses or permits required for manufacturing,
storage, import/export, transport, promotion for the Product or overseeing those
activities and any successor entity thereto, and any corresponding national or
regional regulatory authorities.

Restated Asset Purchase Agreementmeans the Amended and Restated Asset Purchase Agreement entered into between
*** and Novartis International Pharmaceuticals Ltd. and Novartis Pharma
AG dated 17 March 2003.

Supply Agreement means the
supply agreement for the Product and the Drug Substance as the case may be which
the Parties have signed in connection with this Asset Purchase Agreement.

Swiss Code of Obligations
means the Swiss Code of Obligations of March 30, 1911, as amended from time to
time.

Tender means the supply of
Product to governments, hospitals and pharmacies through tender offers.

Territory means the countries
listed in Annex 8.

Third Partymeans any Person
other than a Party or any Affiliate of a Party.

Third Party Agreements means
the existing agreements between Novartis and/or its Affiliates on the one hand
and third parties on the other hand at the time of the Closing related to the
Business listed as third party agreements that are identified in Annex
6.

Third Party Claim means a
Claim made against any person entitled to indemnification under this Agreement
by any person who is not a party to this Agreement.

TM Assignment Documentsshall
have the meaning set forth in Clause 10.6.

Trademarks means the
registered trademarks in the Territory as listed in Annex 1, including
all goodwill associated therewith.

Transferred Assets shall have
the meaning set forth in Clause 2.1.

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Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

Transferred Propertymeans any
Know-How, Patents, Trademarks, Domain Names, Books and Records, Commercial
Information and Medical Information (and any and all intellectual property
rights in the foregoing) in each case to the extent relating exclusively to the
Product and/or Drug Substance in the Territory and in the Field and that is in
existence and owned by Novartis and/or its Affiliates as of the Closing
Date.

Transition Period means the
period, on a country-by-country basis, from the beginning of the Phase 1 Period
until the end of the Phase 2 Period but no longer than ***

Transition Services shall have
the meaning set forth in Clause 6.

Warranty Claim shall have the
meaning set forth in Clause 12.2.

|1.2 | Interpretation.In this agreement unless otherwise
      specified:
|--- | ------------------------------------------------------------------
|    |                                                                   
|    | (a)                                                               
|    |                                                                   
|    | (b)                                                               
|    |                                                                   
|    | (c)                                                               
|    |                                                                   
|    | (d)                                                               
|    |                                                                   
|    | (e)                                                               
|    |                                                                   
|    | (f)                                                               
|    |                                                                   
|    | (g)                                                               
|    |                                                                   
|    | (h)                                                               

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|2.  | Sale and Transfer of Assets                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|2.1 | Sale of Assets.Novartis shall, or shall cause its
      Affiliates to, with effect as of the Closing Date, sell, transfer, assign
      and convey to Purchaser, and Purchaser shall purchase from Novartis and
      its Affiliates, all of Novartis and its Affiliates rights, titles, and
      interests in and to the following assets solely to the extent that they
      relate to the Product in the Territory in the Field (Transferred
      Assets):
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|2.2 | Excluded Assets.Notwithstanding Clause 2.1,
      Novartis shall not sell, transfer, or convey to Purchaser, and Purchaser
      shall not purchase and acquire the following (Excluded
      Assets):                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|    | (f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

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Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

| | (g) | any rights or assets belonging to the business of Alcon
      (which is a division of Novartis), or any of its successors, containing
      any of the Drug Substance;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (h) | any rights or assets belonging to Novartis Vaccines and
      Diagnostics (which is a division of Novartis) or any of its successors,
      containing the Drug Substance;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (i) | any rights or assets outside the Field which shall
      include, for the avoidance of doubt any rights outside the human
      pharmaceutical field (including but without limitation, the use of the
      Drug Substance in the veterinary pharmaceutical field);                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (j) | any domain names containing the word Enablex or
      Emselex followed by a generic top-level domain name or by a designation
      of a geographic locations outside the Territory and the websites located
      at such domain names;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (k) | subject to section 2.4., any rights for countries outside
      the Field and/or Territory for the respective Product;                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (l) | any rights under Novartis insurance policies or self
      insurance which are related to the Business; and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (m) | originals of books and records that Novartis and its
      Affiliates are required to retain pursuant to any Law; provided however,
      that (i)Novartis and its Affiliates, as applicable shall provide copies
      (redacted to the extent necessary to remove any confidential information
      not related to the Business, Product or Drug Substance in the Territory)
      of such books and records to the extent related to the Business, Product
      or Drug Substance in the Territory upon the Purchasers reasonable request
      and (ii) Novartis and its Affiliates, as applicable, may destroy such
      books and records in accordance with their prevailing records retention
      procedures to the extent such books and records are no longer required to
      be retained by Law so long as Novartis and its Affiliates have previously
      provided copies of such books and records to the Purchaser pursuant to
      clause (e) of this Clause 2.2(i); and
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (n) | any Inventory (except as provided in this Agreement and
      the Supply Agreement).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

|2.3 | Sale of Inventory.Purchaser shall purchase (or
      shall cause its Affiliates to purchase) the Inventory in separate
      transactions in accordance with the terms and conditions contained in the
      Supply Agreement. It is agreed and understood by and between the Parties
      that the Purchase Price does not include the Inventory.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                    
|2.4 | Use of Transferred Assets.***                                                                                                                                                                                                                                                                                                                      

---

- 11 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

|3.  | Grant of Licenses                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|3.1 | Licenses.Under the terms and conditions of the
      License Agreement, Novartis shall or shall cause its Affiliates to grant
      to Purchaser, the licenses specified therein effective upon the Closing
      Date. The entire consideration for the licenses shall form part of this
      Agreement (including the Purchase Price and transfer of assets) and the
      licenses shall be fully paid-up and royalty-free.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|4.  | Assumed Liabilities and Excluded
  Liabilities                                                                                                                                                                                                                                                                                                                                                                                 
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|4.1 | Assumed Liabilities.Subject to the terms of the
      Supply Agreement and Clause 14.7 of this Agreement, effective as of the
      time of the Closing, Purchaser shall assume, be responsible for and pay,
      perform and discharge when due, and, if necessary, reimburse Novartis for
      the following (collectively Assumed Liabilities):                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                            
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                
|    | (b)                                                                                                                                                                                                                                                                                                                                                                                                                            

---

- 12 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

|4.2 | Excluded Liabilities.***
  (Excluded Liabilities).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|5.  | Obligations of the Purchaser                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|5.1 | Transfer of Marketing Authorizations.Purchaser
      shall file, or shall cause its Affiliate or designee to file, or, if
      required by applicable Law, Novartis, its Affiliate or designee, shall
      file applications for the transfer of the Marketing Authorizations (MA)
      for the Product in each country of the Territory as soon as practicable
      and in any event within nine (9) months from the Closing Date. *** Such plan shall include all requirements and action plans
      necessary, to obtain approval of the Marketing Authorization transfer by
      the Regulatory Authorities in each country in the Territory (including but
      not limited to the establishment of the Purchasers Affiliate or local
      agent, requirements for Certificate of the Pharmaceutical Product,
      Regulatory Authority inspections and a list of documents to be provided by
      Novartis). Purchaser shall provide Novartis with the status of the
  progress of each Market Authorization Transfer *** until all Marketing Authorizations are transferred.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|5.2 | Transfer of Manufacturing. Purchaser shall obtain
      promptly after the Closing Date, all approvals necessary from the
      Regulatory Authorities to manufacture the Product and the Drug Substance
      independently from Novartis. Purchaser shall assume its own manufacturing
      (or sourcing from a Third Party) of the Drug Substance and the Product,
      immediately upon transfer of the Marketing Authorization on a
  country-by-country basis, ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|5.3 | ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             

---

- 13 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

|6.  | Transition Services provided by Novartis                                                                                                                                                                                                                                                                                                  
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                           
|6.1 | Transition Services.During the Transition Period,
      Novartis and its Affiliates shall provide the following transition
      services (Transition Services) to the Purchaser and/or its
      Affiliates in the Territory during which time Purchaser covenants to
      comply with the Novartis Policies to the extent applicable:
|    |                                                                                                                                                                                                                                                                                                                                           
|    | (a)                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                           
|    | (b)                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                           
|    | (c)                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                           
|    | (d)                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                           
|    | (e)                                                                                                                                                                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                                                                                           
|    | (f)                                                                                                                                                                                                                                                                                                                                       

---

- 14 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

|    | Notwithstanding the above, Novartis hereby reserves the
      right and may in its sole discretion charge Purchaser or Purchasers
      Affiliates for any Transition Services that Novartis considers to be
      onerous from an effort and/or cost perspective.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                    
|6.2 | Transition Period.It is agreed and understood by
      and between the Parties that Novartis shall only provide the Transition
  Services in the Territory until the end of the Transition Period *** from the Closing Date.                                       
|    |                                                                                                                                                                                                                                                                    
|7.  | Maintenance of Marketing Authorizations Pending
      Completion of Transfer                                                                                                                                                                                       
|    |                                                                                                                                                                                                                                                                    
|7.1 | Maintenance. Until completion of the transfer of
      the Marketing Authorizations to Purchaser (or its Affiliates or designee),
  but for no longer than ***                                                                                                     
|    |                                                                                                                                                                                                                                                                    
|    | (a)                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                    
|    | (b)                                                                                                                                                                                                                                                                
|    |                                                                                                                                                                                                                                                                    
|    | (c)                                                                                                                                                                                                                                                                

|7.2 | Responsibility. For the avoidance of doubt,
      Novartis does not warrant and shall not be responsible and shall have no
      liability in this regard for the successful maintenance or renewal of the
      Marketing Authorizations after the Closing Date and/or whether or not a
      variation is successful, except if the Regulatory Authority cancels a
      Marketing Authorization or refuses its renewal as a result of Novartis
      gross negligence or wilful misconduct. Furthermore, Novartis is not
      responsible for conducting any studies, including clinical and stability
      studies, concerning the Drug Substance and/or the Product, which may be
      requested by the Regulatory Authority or any Governmental Authority after
      the Closing Date, regardless of whether the MA Transfer Date has occurred
      or not.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

---

- 15 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

|7.3 | Costs. The Purchaser, or its Affiliates, shall
      bear the Third Party fees levied by the relevant Regulatory Authorities
      and Governmental Entities and any other relevant costs, (including
      Novartis notarization costs) for (a) the maintenance of the Marketing
      Authorizations and for the transfer to Purchaser (or its Affiliates) after
      the Closing; and (b) *** Further
      the Purchaser, or its Affiliates shall bear any internal costs of Novartis
      and/or its Affiliates for regulatory support which is above and beyond
  standard maintenance of the Marketing Authorizations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|8.  | Co-operation on Pharmacovigilance and
  Safety                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|8.1 | Adverse Events. The Parties shall co-operate in
      good faith with regard to the reporting and handling of Adverse Events in
      accordance with the applicable Laws and regulations on pharmacovigilance.
      Purchaser agrees to share safety and adverse event data generated after
      the Closing Date with Novartis. Novartis shall be responsible for
      providing said information to its Affiliates and any Third Party to which
      Novartis has divested the Product in countries outside the Territory in
      the event such data is necessary for use in any regulatory submission,
      including 15-day expedited reporting, product registration or dossier
      outside of the Territory for the approval and maintenance of any product
      (including over-the-counter product) outside the Territory; provided, that
      Novartis shall modify such data before sharing it to comply with
      applicable data privacy Laws. The foregoing obligation shall only apply to
      Novartis for up to *** after Novartis has supplied the last
      batch of finished product to Purchaser pursuant to the Supply Agreement.
      Thereafter, it shall be the Purchasers responsibility to ensure that the
      safety and adverse event data required by the applicable Laws and
      regulations in the Territory is available for any regulatory submission,
      product registration or dossier in the Territory according to such
  applicable Laws and regulations.
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|8.2 | Pharmacovigilance Agreement. Following the Closing
      Date, and in time to ensure that all regulatory requirements are met, the
      Parties shall enter into a pharmacovigilance agreement, which template is
      attached hereto as Annex 7.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|9.  | Purchase Price and Payment of Purchase
  Price                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|9.1 | Purchase Price.The purchase price for the
      Transferred Assets and provision of the licenses under the License
      Agreement shall be the sum of sixty-three million United States Dollars
      (USD $63,000,000.00), exclusive of any applicable VAT as defined in the
      Letter of Intent (Purchase Price) and is non-refundable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|9.2 | Payment Schedule.At the Closing Date, Purchaser
      shall pay to Novartis forty-three million United States Dollars
      (USD$43,000,000.00) minus any Exclusivity Payments (the Exclusivity
      Payment and the Second Exclusivity Payment) as defined in the Letter
      of Intent paid by Purchaser to Novartis prior to the Closing
      Date and which are to be credited to the Purchaser against the Purchase
      Price as per the Letter of Intent. The Purchase Price shall be paid by the
      Purchaser free and clear of, and without deduction for withholdings and
      taxes by wire transfer into bank accounts to be specified by Novartis and
      the remaining twenty million United States Dollars (USD$20,000,000.00)
      shall be paid to Novartis on the first anniversary of the Closing Date,
      said amount to be secured by Purchaser by way of the Irrevocable Letter of
      Credit in favor of Novartis which shall be delivered to Novartis at
      Closing. Any costs associated with the Irrevocable Letter of Credit shall
      be borne by the Purchaser. Novartis shall provide the Purchaser in writing
      with the required bank account information at least three (3) Business
  Days prior to the date such payment is required to be made.                                                                                                                                                                                                        

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|9.3  | Taxes.                                                                                                                                                                                                                                                                                                                                                                                                                     
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                            
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                            
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                            
|     | (c)                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                            
|     | (d)                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                            
|10.  | Closing                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                            
|10.1 | Closing Date.Upon the terms and subject to the
      conditions of this Agreement, the transfer of the Transferred Assets and
      the assumption of the Assumed Liabilities shall take place on the Closing
      Date at Novartis offices in Basel.                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                                                                                                            
|10.2 | Confirmation of Payment.At the Closing, Purchaser
      shall deliver to Novartis the written confirmation, in a form reasonably
      satisfactory to Novartis, of payment of the first portion of the Purchase
      Price, (being forty-three million United States
Dollars (USD$43,000,000.00) less any Exclusivity Payments made
      pursuant to the Letter of Intent) as set out in Clause 9.2 of this
  Agreement.

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- 17 -

|10.3 | Confirmation to Affiliates. Within thirty (30)
      days of Closing, Novartis shall deliver to Purchaser a copy of
      instructions by Novartis to its pertinent Affiliates by which Novartis
      instructs them to:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|10.4 | Insurance.Title and risk of loss or damage to the
      Transferred Assets shall pass to the Purchaser on the Closing Date at the
      place established for Closing in Clause 10.1. As of the Closing Date, the
      Transferred Assets shall cease to be insured by Novartis insurance
      policies or by Novartis self-insurance, as the case may be, and the
      Purchaser shall have no right or obligation with respect to any such
      policy.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|10.5 | Documents to be Delivered on the Closing Date. On
      the Closing Date, in addition to the Irrevocable Letter of Credit
      contemplated by Clause 9.2 and those documents contemplated by Clauses
      10.6, 10.7 and 10.8, the Parties shall execute and deliver the following
      documents:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|10.6 | Transfer of Trademarks. At Closing, Purchaser
      shall prepare and deliver to Novartis a draft assignment document for the
      transfer of the Trademarks from Novartis or its Affiliates to Purchaser in
      the Territory (the TM Assignment Documents) in the form attached
      at Annex 12. Upon receipt of such TM Assignment Documents by
      Novartis, Novartis or its relevant Affiliate and Purchaser will promptly
      complete and execute the TM Assignment Documents and Purchaser shall be
      responsible for filing the TM Assignment Documents with the relevant
      trademark registries at its sole cost and expense, including all filing
      costs and external fees. Novartis sole obligation with regards to the
      transfer of the Trademarks will be to properly execute the TM Assignment
      Documents and any other documents required to register the transfer of the
      Trademarks in the Territory and to assist with related formalities and to give effect to the
      rights granted herein and/or to cause its Affiliates to do same. This
      Clause 10.6 shall survive Closing.

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|10.7 | Transfer of Patents. At Closing, Purchaser shall
      prepare and deliver to Novartis a draft assignment document for the
      transfer of the Patents from Novartis or its Affiliates to Purchaser in
      the Territory (the Patent Assignment Documents) in the form
      attached at Annex 13. Upon receipt of such Patent Assignment
      Documents, Novartis or its relevant Affiliate and Purchaser will promptly
      complete and execute the Patent Assignment Documents and Purchaser shall
      be responsible for filing the Patent Assignment Documents with the
      relevant patent registries at its sole cost and expense, including all
      filing costs, and external fees. Novartis sole obligation with regards to
      the transfer of the patents will be to properly execute the Patent
      Assignment Documents and any other documents required to register the
      transfer of the Patents in the Territory and to assist with related
      formalities and to give effect to the rights granted herein, including but
      not limited to any rights under the Canadian Patented Medicines (Notice of
      Compliance) Regulations and/or to cause its Affiliates to do same. Patents
      contained in Schedule 1 of Annex 2 shall be assigned to the Purchaser and
      Patents contained in Schedules 2 and 3 of Annex 2 shall be assigned to an
      Affiliate of the Purchaser as directed by the Purchaser. This Clause 10.7
      shall survive Closing.
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|10.8 | Transfer of Domain Names. At Closing, Purchaser
      shall prepare and deliver to Novartis a draft assignment document for the
      transfer of the Domain Names from Novartis or its Affiliates or friendly
      third party in Canada to Purchaser in the Territory (the Domain Name
      Assignment Documents) in the form attached at Annex 14. Upon
      receipt of such Domain Name Assignment Documents, Novartis or its relevant
      Affiliate or friendly third party in Canada and Purchaser will promptly
      complete and execute or have completed and executed the Domain Name
      Assignment Documents. Novartis, its Affiliate or he current Novartis
      administrator of the Domain Name shall be responsible for filing the
      requisite requests and any required Domain Name Assignment Documents with
      the relevant domain name registrar at its sole cost and expense, including
      all filing costs, and external fees. Novartis shall assist with related
      formalities to give effect to the rights granted herein and/or to cause
      its Affiliates and/or friendly third party in Canada to do same. This
      Clause 10.8 shall survive Closing.                                                                                                                                                                                                                                                                                                     

|11.  | Third Party Agreements                 
|---- | ---------------------------------------
|     |                                        
|11.1 | Assignment of Third Party
  Agreements.

| | (a) | Novartis shall assign to Purchaser, and Purchaser shall
      accept the assignment of, the rights and obligations of Novartis or any of
      its Affiliates related to the Product under each Third Party Agreement
      listed in Section 1 of Annex 6(including, where appropriate, Third
      Party Agreements originally entered by Sandoz Ltd (Sandoz) or
      Ciba-Geigy Ltd (Ciba-Geigy) and of which Novartis is the legal
      successor), prior to the transfer of the Marketing Authorization in
      the country in the Territory to which such Third Party Agreement relates
      or at such other time as the Parties may mutually agree but in no event
      later than the end of the Phase I period for the respective Territory. The
      form and substance of the assignment and assumption agreements shall be
      mutually agreed to by the Parties. Where Novartis requires the prior
      written consent of a Third Party in order to assign such Third Party
      Agreement, Novartis shall use commercially reasonable efforts to obtain
      such consent but shall be under no obligation to assign such Third Party
      Agreement to the Purchaser in the event that such consent is not
  forthcoming.
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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- 19 -

| | (b) | In the event that consent is not obtained, Novartis shall
      remain as the contracting party under such Third Party Agreements for
      their duration (the Non-Assignable Agreements) provided that
      Novartis shall be entitled to terminate the Third Party Agreement as soon
      as practicable. Novartis, as the contracting party under said
      Non-Assignable Agreements, and the Purchaser will cooperate in a mutually
      agreeable arrangement under which the Purchaser will obtain the benefits
      and assume the obligations of the Non-Assignable Agreements in accordance
      with this Agreement, including sub-contracting, sub-licensing or
      sub-leasing to the Purchaser or whereby the Purchaser shall, as Novartis
      agent, perform and discharge all outstanding obligations and liabilities
      of Novartis (or as applicable, Novartis Affiliates) under the Third Party
      Agreement, or under which Novartis would enforce for the benefit of the
      Purchaser any and all rights of Novartis against a Third Party thereto,
      with the Purchaser assuming any liabilities of Novartis.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | (c) | Where Purchaser assumes any obligations under a Third
      Party Agreement, the Purchaser shall indemnify Novartis against any
      actions, proceedings, liabilities, losses, costs, demands or claims
      Novartis may incur arising out of the Purchasers failure to do
  so.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

|11.2 | Termination of Third Party Agreements.Subject to
      the conditions set forth in the relevant Third Party Agreement and upon
      receipt of the Purchasers written request, Novartis shall terminate after
      the Closing Date any relevant Third Party Agreement not assigned to the
      Purchaser as provided in Clause 11.1, as soon as reasonably
      practicable.                                                                                                                                                                                                                   
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|11.3 | Assignment or Termination of Parts of a Third Party
      Agreement.Where only part of a Third Party Agreement relates to the
      Product(s) sold to Purchaser under this Agreement or where such Third
      Party Agreement is not exclusively related to the Product then nothing in
      this Agreement shall oblige Novartis to assign such Third Party Agreement
      to the Purchaser and Novartis shall remove the Product from the scope of
      the Third Party Agreement as soon as practicable after the Closing Date,
      unless otherwise agreed in writing between the
Parties.

---

- 20 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

|11.4 | Tenders. Where feasible, as Novartis shall in its
      sole discretion decide, the Tenders will be treated in the same manner as
      the Third Party Agreements (as appropriate). The Parties will cooperate to
      ensure (where feasible) an efficient transfer to Purchaser of the Tenders
      outstanding as of the Closing Date or that are issued during the
      Transition Period with the aim of continuing the supply of the Products
      through the Tenders.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|11.5 | Restated Asset Purchase
  Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                              

| | (a) | The Purchaser acknowledges that Novartis acquired certain
      rights to the Product from *** pursuant to the Restated Asset
  Purchase Agreement. Pursuant to ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (b) | ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (c) | The Parties further acknowledge that the countries
      France, Italy and Spain (being the Major EU Countries where Novartis has
      not launched the Product) are not included in the definition of the
      Territory and accordingly Novartis does not, whether under this
      Agreement or otherwise, transfer any rights in the Product in these
      countries to Purchaser. Notwithstanding the foregoing, through the EMEA
      centralized regulatory approval process, EMEA Approval of the Product (as
      defined in the Restated Asset Purchase Agreement) in these three countries
      has been obtained and will be automatically transferred to the Purchaser
      as a result of the transfer of the EMEA approvals in the
  Territory.
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | (d) | ***                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

---

- 21 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

| | (e) | ***
| | --- | ---

|12.  | Novartis Representations and Warranties                                                                                                                                         
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                  
|12.1 | Representations and Warranties.Novartis, on its
      own behalf and on behalf of its Affiliates, warrants that as at the
      Closing Date, and except as disclosed in Annex 5:
|     |                                                                                                                                                                                  
|     | (a)                                                                                                                                                                              
|     |                                                                                                                                                                                  
|     | (b)                                                                                                                                                                              
|     |                                                                                                                                                                                  
|     | (c)                                                                                                                                                                              
|     |                                                                                                                                                                                  
|     | (d)                                                                                                                                                                              

---

- 22 -

| | (e) | to Novartis reasonable knowledge and belief, after due
      enquiry, there are no infringements by any third party of any of the
      Transferred Assets or the Patents, Trademarks, Domain Names or Licensed
      Assets in any of the countries in the Territory;                                                                                                                                                                                                                                                                                            
| | --- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (f) | Novartis has paid or accrued in its accounts all
      applicable taxes related to the Transferred Assets and Licensed Assets
      prior to the Closing Date;                                                                                                                                                                                                                                                                                                                                                                                                     
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (g) | to Novartis reasonable knowledge and belief, after due
      enquiry, the Marketing Authorizations are in force to the extent required
      by applicable Law;                                                                                                                                                                                                                                                                                                                                                                                                   
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (h) | to Novartis best knowledge and belief after due inquiry,
      Novartis has not withheld from Purchaser any material information
      concerning the Transferred Assets, the Licensed Assets and the Business;
      and                                                                                                                                                                                                                                                                                                                                         
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
| | (i) | the Books and Records are true and correct and present
      fairly and disclose in all material respects the financial position of the
      Business and all material financial transactions of Novartis relating to
      the Business have been accurately recorded in such books and records and,
      to the extent possible, such books and records have been prepared in
      accordance with generally accepted Accounting Standards consistently
      applied and there has been no material adverse effect or event in respect
      of the Business.

|12.2 | Save as provided for under Clause 14.8 (a) hereinafter,
      the Purchaser's statutory inspection and notice obligations under section
      201 of the Swiss Code of Obligations and the statutory time limits for
      warranty (pursuant to section 210 of the Swiss Code of Obligations) are
      herewith expressly waived.                                                                                                                                                                                                                      
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|12.3 | Disclosures.Novartis shall not be liable for a
      breach of the warranties (each a Warranty Claim) if the subject
      matter giving rise to the Warranty Claim has been disclosed to the
      Purchaser in Annex 5or the Data Room.                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|12.4 | Disclaimer.Except as provided for in this Clause
      12 and any survival provisions in this Agreement or as provided for in the
      License Agreement or Supply Agreement, Novartis makes no representations,
      extends no warranties of any kind, either express or implied, and assumes
      no responsibility after Closing whatsoever in respect of the Business, the
      Transferred Assets, the manufacture, marketing, promotion, distribution,
      sale and use of the Product or the Drug Substance, and the Licensed
      Assets.

---

- 23 -

|12.5 | Adequacy of Information.Purchaser acknowledges
      and agrees that:                                                                                      
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                            
|     | (a)                                                                                                                                                        
|     |                                                                                                                                                            
|     | (b)                                                                                                                                                        
|     |                                                                                                                                                            
|     | (c)                                                                                                                                                        
|     |                                                                                                                                                            
|13.  | Purchasers Representations and Warranties And
      Covenants                                                                                             
|     |                                                                                                                                                            
|13.1 | Representations and Warranties. Purchaser, on its
      own behalf and on behalf of its Affiliates, warrants to Novartis that as
      of the Closing Date:
|     |                                                                                                                                                            
|     | (a)                                                                                                                                                        
|     |                                                                                                                                                            
|     | (b)                                                                                                                                                        
|     |                                                                                                                                                            
|     | (c)                                                                                                                                                        
|     |                                                                                                                                                            
|     | (d)                                                                                                                                                        

---

- 24 -

Pursuant to 17 CFR 240.24b-2, confidential information has been omitted in places marked “* * *” and has been filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment Application filed with the Commission.

| | (e) | Purchaser is not aware that any information concerning
      the Business which Novartis has provided prior to the Closing Date would
      be untrue or incorrect;                                                                                                                                                                             
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                 
| | (f) | Purchaser is not aware of any grounds for a valid basis
      for bringing a Warranty Claim against Novartis under this Agreement;
      and                                                                                                                                                                                                    
| |     |                                                                                                                                                                                                                                                                                                                                                 
| | (g) | Purchaser is a valid legal entity duly constituted,
      organized and existing under the Laws of the jurisdiction of its formation
      and has the capacity to enter into this Agreement and has obtained all
      required internal approvals from its board of directors, management
      committee and/or any other internal committee.

|13.2 | The Purchaser hereby acknowledges and agrees that by the
      date of filing for the transfer of a Marketing Authorization as described
      in Clause 5.1 in each of Canada, Switzerland, Croatia and the countries of
      the European Union within the Territory, it shall have Affiliates or
      distributors that meet all requisites mentioned in Clause 13.1(a)
      above.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                          
|13.3 | ***                                                                                                                                                                                                                                                                                                                                                                                      

---

- 25 -

|14.  | Indemnification                                                                                                                                                                                                                                                                                                                  
|---- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                  
|14.1 | Claims.If a Party breaches a representation or
      warranty (irrespective of whether or not such breach has been caused by
      such Partys negligence) or covenant, it shall be liable to the other
      Party for the Loss caused by such breach, subject to the limitations and
      other provisions of this Agreement.
|     |                                                                                                                                                                                                                                                                                                                                  
|14.2 | Survival.                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                  
|     | (a)                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                  
|     | (b)                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                  
|14.3 | Limitations.                                                                                                                                                                                                                                                                                                                     
|     |                                                                                                                                                                                                                                                                                                                                  
|     | (a)                                                                                                                                                                                                                                                                                                                              
|     |                                                                                                                                                                                                                                                                                                                                  
|     | (b)                                                                                                                                                                                                                                                                                                                              

---

- 26 -

|14.4 | Reductions.To the extent that any Loss incurred
      due to the breach of a representation or warranty is compensated by other
      related benefits, e.g. tax benefits or valid and enforceable claims
      against third parties, including insurance companies, the liability is
      reduced accordingly. The respective Party shall use all reasonable efforts
      to obtain such related benefits. For the avoidance of doubt, the Parties
      are aware that this will not exclude the possibility that insurance
      companies may have a right for full or partial recourse against the Party
      which has breached a representation or warranty.
|---- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|14.5 | Sole Remedy.The provisions of this Clause 14
      shall be the sole and exclusive monetary remedy of Purchaser and Novartis
      for any breach by the other party of a representation or warranty
      contained in this Agreement.                                                                                                                                                                                                                                                                                                                                                                                                                                
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|14.6 | Indemnity by Novartis.Subject to the other
      provisions of this Clause 14, Novartis shall indemnify and hold harmless
      the Purchaser and its Affiliates and their respective officers, directors,
      employees and agents (for whom the Purchaser holds such rights in trust)
      (collectively, the Purchaser Indemnitees) from and against all
      Claims asserted against and Losses incurred by any of them directly or
      indirectly arising out of or resulting from:                                                                                                                                                                       
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|14.7 | Indemnity by Purchaser.Subject to the other
      provisions of this Clause 14, Purchaser shall indemnify and hold harmless
      Novartis and its Affiliates and their respective officers, directors,
      employees and agents (for whom Novartis holds such rights in trust)
      (collectively, the Novartis Indemnitees) from and against all
      Claims asserted against and Losses incurred by any of them directly or
      indirectly arising out of or resulting from:                                                                                                                                                                                
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

---

- 27 -

|14.8 | Third Party Indemnification Procedure. The
      indemnified party under this Clause 14 (the Indemnified Party)
      shall:
|---- | ------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                               
|     | (a)                                                                                                                           
|     |                                                                                                                               
|     | (b)                                                                                                                           
|     |                                                                                                                               
|     | (c)                                                                                                                           
|     |                                                                                                                               
|     | (d)                                                                                                                           
|     |                                                                                                                               
|     | (e)                                                                                                                           
|     |                                                                                                                               
|14.9 | Adjustments.                                                                                                                  
|     |                                                                                                                               
|     | (a)                                                                                                                           
|     |                                                                                                                               
|     | (b)                                                                                                                           
|     |                                                                                                                               
|15.  | [RESERVED]                                                                                                                    
|     |                                                                                                                               
|15.1 | [Reserved].                                                                                                                   
|     |                                                                                                                               
|16.  | Confidentiality; Press Release; Data, Books and
      Records                                                                 
|     |                                                                                                                               
|16.1 | Confidentiality                                                                                                               

| | (a) | Subject to:
| | --- | -----------

| | (i) | the exceptions contained in the Confidentiality
      Agreement; and
| | --- | --------------------------------------------------------------------

---

- 28 -

| | (ii) | the requirements of applicable Laws or Regulatory
      Authority,
| | ---- | ------------------------------------------------------------------

| |     | Purchaser (and its Affiliates, third party suppliers or
      distributors) shall keep confidential and not disclose to any third party
      any confidential information pertaining to the Business and the
      Transferred Assets, which is received or obtained as a result of entering
      into or performing this Asset Purchase Agreement, including, know-how
      concerning the manufacture of the Drug Substance and Product.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | (b) | Notwithstanding any provision of this Asset Purchase
      Agreement or the Confidentiality Agreement, Novartis acknowledges that the
      Purchaser may have public disclosure obligations and may be required to
      disclose this Agreement and a summary of the transaction, including the
      Purchase Price, in its continuous disclosure documents as required by
      applicable Laws, regulations and rules including any requirements imposed
      on public companies by applicable security regulators, such as posting any
      required information on SEDAR or in public disclosure documents provided,
      however that the Parties agree that the form of redacted version of this
      Agreement to be so filed or disclosed shall be as agreed by the Parties in
      Annex 15, subject to revisions as required by a Governmental Entity
      to be in compliance applicable Law.

|16.2 | Press Releases.Subject to Clause 16.1 (b).
      neither Party shall issue any press release, trade announcement or make
      any other public announcement with regard to the transactions contemplated
      by this Agreement without the other Partys prior written consent, which
      shall not be unreasonably withheld. Where consent is forthcoming, the
      Parties agree to consult with each other regarding the content of any such
      press release or other announcement. This aforementioned restriction shall
      not apply to announcements required by any Regulatory Authority,
      Governmental Entity or applicable Law provided that in such event the
      Purchaser shall take into consideration and comply with any requests of
      Novartis and the Parties shall, to the extent reasonably practicable,
      coordinate the wordings of any such announcements. Purchaser acknowledges
      that Novartis shall have the right to disclose a brief summary of the
      transaction, including the Purchase Price, in its official financial
      reports. Subject to Clause 16.1(b), at Closing, the Purchaser shall issue
      a Press Release in the form attached in Annex 11.
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|16.3 | Maintenance of Data and Books and Records.For a
      period of six years after the Closing Date:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

---

- 29 -

| | (b) | no such data, and other Books and Records shall be
      destroyed by the Purchaser without first advising Novartis in writing and
      giving Novartis a reasonable opportunity, at Novartis sole cost, to
      obtain possession thereof. Novartis will hold, and will use commercially
      reasonable efforts to cause its officers, directory, employees,
      accountants, counsel, consultants, advisors and agents to hold, in
      confidence, unless compelled to disclose by judicial or administrative
      process or by other requirements of applicable Law, all confidential
      documents and information concerning the Purchaser or the Business
      provided to it pursuant to this Clause 16.3.-
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|17.  | Miscellaneous                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|17.1 | Governing Law and Jurisdiction.This Asset
      Purchase Agreement shall be governed by and construed under the Laws of
      Switzerland, without giving effect to the conflicts of laws provision
      thereof, and with the exclusion of the Vienna Convention on the
      International Sale of Goods. Any claim or dispute arising out of or
      relating to this Agreement that cannot be resolved amicably between the
      Parties within thirty (30) days after the controversy has arisen shall be
      subject to the exclusive jurisdiction of the courts located in
      Basel-Stadt, Switzerland. Each Party irrevocably agrees and consents to
      the jurisdiction of the courts located in Basel-Stadt, Switzerland and
      waives any objection it may have to the venue of such courts, including
      with respect to the convenience of the forum and jurisdiction.
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|17.2 | Assignment.Neither Party may assign its rights
      and obligations under this Agreement without the other Partys prior
      written consent, except that                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

---

- 30 -

| | (i)   | assign its rights and obligations under this Agreement
      and this Agreement in its entirety or any part thereof to one or more of
      its Affiliates;                                                                                                                                                                                         
| | ----- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |       |                                                                                                                                                                                                                                                                                                                                                     
| | (ii)  | subject to Clause 17.2(c), collaterally assign its rights
      and obligations under this Agreement and this Agreement in its entirety or
      any part thereof to one or more financing sources of Purchaser and/or its
      Affiliates; and                                                                                                    
| |       |                                                                                                                                                                                                                                                                                                                                                     
| | (iii) | assign its rights and obligations under this Agreement
      and this Agreement in its entirety as part of the sale of all or
      substantially all of the business or assets of Purchaser to which this
      Agreement relates, or pursuant to any merger, consolidation, combination,
      plan of arrangement or reorganization of
Purchaser.

| | (c) | Purchaser may collaterally assign its rights and
      obligations under this Agreement and this Agreement in its entirety or any
      part thereof to PDL BioPharma, Inc. without the prior written consent of
      Novartis. Purchaser shall endeavour to provide 10 days prior written
      Notice to Novartis in case of such an assignment.
| | --- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |     |                                                                                                                                                                                                                                                                                                                                                    
| | (d) | Any attempted assignment in contravention of the
      foregoing shall be void.                                                                                                                                                                                                                                                                    

|17.3 | Force Majeure.If and to the extent that either
      Party is prevented or delayed by Force Majeure from performing any of its
      obligations under this Agreement and promptly so notifies in writing the
      other Party, specifying the matters constituting Force Majeure together
      with such evidence in verification thereof as it can reasonably give and
      specifying the period for which it is estimated that the prevention or
      delay will continue, then the Party so affected shall be relieved of
      liability to the other for failure to perform or for delay in performing
      such obligations (as the case may be), but shall nevertheless use its
      commercially reasonable efforts to resume full performance
  thereof.
|---- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|17.4 | Notices.All notices, consents, waivers, and other
      communications under this Asset Purchase Agreement must be in writing and
      shall be deemed to have been duly given when:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     | (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|     | (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

---

- 31 -

If to Purchaser:

Merus Labs Luxco SARL208, Val des
Bons Malades,Luxembourg L-2121,The Grand Duchy of LuxembourgAttn:
General ManagerTel: +352 262 0451, 208Fax: +352 262 017 13

If to Novartis:

Novartis Pharma AGLichtstrasse
35CH-4056 Basel, SwitzerlandAttn: Head of BD&LFax: +41 61 324
2100

With a copy to:

Novartis Pharma AGLichtstrasse
35CH-4056 Basel, SwitzerlandAttn: General CounselFax: +41 61 324
7399

|17.5 | Waiver and Amendments. The failure of any Party to
      assert a right hereunder or to insist upon compliance with any term or
      condition of this Agreement shall not constitute a waiver of that right or
      excuse a similar subsequent failure to perform any such term or condition
      by the other Party. No waiver shall be effective unless it has been given
      in writing and signed by the Party giving such waiver. No provision of
      this Agreement may be amended or modified other than by a written document
      signed by authorized representatives of each Party.                                                                              
|---- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|     |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|17.6 | Severability. Without prejudice to any other
      rights that the Parties have pursuant to this Agreement, every provision
      of this Agreement is intended to be severable. If any provision of this
      Agreement shall be invalid or unenforceable, such invalidity or
      unenforceability shall not affect the other provisions of this Agreement,
      which shall remain in full force and effect. The Parties hereto agree to
      consult each other and to agree upon a new
stipulation which is permissible under applicable Law and which comes
      as close as possible to the original purpose and intent of the invalid,
  void or unenforceable provision.

---

- 32 -

|17.7  | Entire Agreement. This Agreement (together with
      the License Agreement and the Supply Agreement) constitutes the entire
      agreement and supersedes all prior agreements and understandings, both
      written and oral, between the Parties with respect to the subject matter
      hereof.                                                                                                                                                                                                                                                                                                                               
|----- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|17.8  | Relationship of the Parties.Nothing contained in
      this Agreement shall be deemed to constitute a partnership, joint venture,
      or legal entity of any type between Novartis and Purchaser, or to
      constitute one as the agent of the other. Moreover, each Party agrees not
      to construe this Agreement, or any of the transactions contemplated
      hereby, as a partnership for any tax purposes. Each Party shall act solely
      as an independent contractor, and nothing in this Agreement shall be
      construed to give any Party the power or authority to act for, bind, or
      commit the other.
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|17.9  | Expenses.Except as otherwise expressly provided
      in this Agreement, each Party shall pay the fees and expenses of its
      respective lawyers and other experts and all other expenses and costs
      incurred by such Party incidental to the negotiation, preparation,
      execution and delivery of this Agreement.                                                                                                                                                                                                                                                                                                      
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|17.10 | Extension to Affiliates.Novartis shall have the
      right to extend the rights, immunities and obligations granted in this
      Agreement to one or more of its Affiliates. All applicable terms and
      provisions of this Agreement shall apply to any such Affiliate to which
      this Agreement has been extended to the same extent as such terms and
      provisions apply to Novartis. Novartis shall remain liable for any acts or
      omissions of its Affiliates.                                                                                                                                                
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|17.11 | Compliance with Law.Each Party shall perform its
      obligations under this Agreement in accordance with all applicable Laws.
      No Party shall, or shall be required to, undertake any activity under or
      in connection with this Agreement which violates, or which it believes, in
      good faith, may violate, any applicable Law.                                                                                                                                                                                                                                                                                   
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|17.12 | English Language. This Agreement is written and
      executed in the English language. Any translation into any other language
      shall not be an official version of this Agreement and in the event of any
      conflict in interpretation between the English version and such
      translation, the English version shall prevail.                                                                                                                                                                                                                                                                                         
|      |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|17.13 | Counterparts. This Agreement may be executed in
      two or more counterparts, whereby the exchange of dated and signed PdF
      copies is considered to meet the written form requirement of section 13
      Swiss Code of Obligations. Each such counterpart shall be deemed an
      original, but all of which together shall constitute one and the same
      instrument.                                                                                                                                                                                                                                                   

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- 33 -

[Signature Pages Follow.]

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- 34 -

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Closing
Date.

NOVARTIS PHARMA AG



By: "signed"

Name: ______________________________

Title:   ______________________________



By: "signed"

Name: ______________________________

Title:   ______________________________



MERUS LABS LUXCO SARL

By: "signed"

Name: ______________________________

Title:   ______________________________

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