Exhibit 10.4
 
  
 SETTLEMENT AND LICENSE AGREEMENT
 Agreement Endo Penwest Impax Parties Party
 RECITALS
 WHEREAS New Jersey
Actions
 WHEREAS
 NOW THEREFORE
 
 Definitions
 Affiliate
 Agreement
 ANDA et
seq
 Commencement Date




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Settlement and License Agreement
   ® ®
    ® ®
 ® provided ,
 Covenant Not To Sue Section 4.1(b)
 Dismissal Date
 DOJ Section 2.1
 Effective Date
 Endo
 Page 2




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Settlement and License Agreement
 Endo Credit
 Endo Net Sales
 Endo Product ®
 Exclusivity Period Section 4.1(c)
 Existing Patents Section 4.1(a)
 FDA
 FD&C Act et seq.
 FDB Data
 FTC Section 2.1
 Impax
 Impax ANDA
 Impax Parties Section 4.1(b)
 Impax Product
 Page 3




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Settlement and License Agreement
  IMS Data
 License Section 4.1(a)
 License Term Section 4.2(a)
 Licensed Patents Section 4.1(a)
 Market Share Profit Factor
 Market Share Profit Value
 [**]
    
    [**]
    
    [**][**]
 NDA et seq
 Net Sales
 Page 4




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Settlement and License Agreement
 New Jersey Actions Endo Pharmaceuticals Inc. and Penwest Pharmaceuticals Co.
v. Impax
 Opana® ER Generic Product ®
 Opana® ER Patents
 Opana® ER Product ®
 Opana® NDA
 Orange Book Approved Drug Products with Therapeutic
Equivalence Evaluations
 Paragraph IV Certification
 Party Parties
 Pending Applications Section 4.1(a)
 Penwest
 Person
 Pre-Impax Amount
 Prescription Sales
 Quarterly Peak
 Territory
 Page 5




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Settlement and License Agreement
 Third Party
 Trigger Threshold
 
 Submission To U.S. Government DOJ FTC
 No Prejudice Section
8.3
 
 Required Filings
 Page 6




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Settlement and License Agreement
 Appendix
A
 Impax Sale Commencement Date Section 3.2 ® Section 4.1 Section 3.2
 No Challenge to Opana® ER Patents ®
 Page 7




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Settlement and License Agreement
 ® ®
 Costs; Dismissals Section 3.1 Section 3.1
 No Implied Consents
 Releases Section 8.2 ® ® ®
 Section 8.2
 Page 8




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Settlement and License Agreement
 ®
 
 License; Covenant Not To Sue Section 3.2 Section 4.3 License ® Existing
Patents Pending
Applications Licensed Patents
 Impax
Parties
 Page 9




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Settlement and License Agreement
 Section 3.2 Covenant Not to Sue
 Section 4.1(c) ® ® ® Exclusivity Period ® ® ® ® ® ® ®
 Page 10




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Settlement and License Agreement
    ® Section
3.2 provided
  License Term License Term
 Royalties.
 Page 11




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Settlement and License Agreement
  Endo Credit Section 4.4 Section 4.4
 Steering Committee Steering Committee
 Opana® ER Patents ® ®
 No Implied Rights Section 4.1
 Governmental Approvals
 Page 12




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Settlement and License Agreement
 Transfers. ® ®
 FDA Cooperation.
 provided Section 4.10(b)
 NDC. ®
 
 Publicity Section 5.1 Section 5.2 Confidential Information
 Page 13




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Settlement and License Agreement
 Article V provided Section 2.1 Section 5.2 ® ® Section 5.1
 Required Disclosure
 
 Representations as to Endo and Penwest
    Page 14




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Settlement and License Agreement
 Section 3.6(b)
 ®
 Representations as to Impax
    Section 3.6(a)
 Disclaimer
 Page 15




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Settlement and License Agreement
  
 Indemnification Article VII provided Article
VII
 
 Term
 Termination . Section 3.2 ®
 Page 16




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Settlement and License Agreement
 ® Section 3.2 Section 8.2(b)
  Effect of Termination Section 8.2 ®
 Survival Sections 2.2 3.4 3.5 3.6 6.1 6.2 6.3 8.3 8.4 Articles I, V VII
 
 Governing Law; Jurisdiction
 Notices
 Page 17




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Settlement and License Agreement
  For Impax:
    
    Impax Laboratories, Inc.
121 New Britain Blvd.
Chalfont, PA 18914
Facsimile No.: (215) 933-0333
Attn: Chris Mengler, President, Generic Divisionwith a copy
(which shall not
constitute notice) to:
    
    Impax
Laboratories, Inc.
30831 Huntwood Avenue
Hayward, CA 94544
Facsimile No.: (510) 471-3200
Attn: Margaret Snowden,
          Vice President, Intellectual PropertyFor Endo:
    
    Endo Pharmaceuticals Inc.
100 Endo Boulevard
Chadds Ford, PA 19317
Facsimile No.: (610) 558-9682
Attn: Presidentwith a copy to:
    
    Endo Pharmaceuticals Inc.
100 Endo Boulevard
Chadds Ford, PA 19317
Facsimile No.: (610) 558-9684
Attn: Chief Legal OfficerFor Penwest:
    
    Penwest Pharmaceuticals Co.
2981 Route 22
Suite 2
Patterson, NY 12563
Attn: President & CEO
  Entire Agreement; Waiver
 Page 18




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Settlement and License Agreement
  Counterparts
 No Third Party Beneficiaries
 Assignment provided provided further Section
9.6
 Irreparable Harm Section 3.2 Section
3.3 Article V
 Expenses
 Page 19




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Settlement and License Agreement
 Headings
 Construction
  Page 20




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ENDO PHARMACEUTICALS INC.By:
    
    /s/ David P. HolveckName and Title: David P. Holveck, President & CEODate: June 7, 2010PENWEST PHARMACEUTICALS CO.By:
    
    /s/ Jennifer L. GoodName and Title: Jennifer L. Good, President & CEODate: June 8, 2010IMPAX LABORATORIES, INC.By:
    
    /s/ Arthur A. Koch, Jr.Name and Title: Arthur A. Koch, Jr., SVP-CFODate: June 8, 2010




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Settlement and License Agreement
 APPENDIX A
 STIPULATION OF DISMISSAL AND ORDER
 UNITED STATES DISTRICT COURT
DISTRICT OF NEW JERSEY
 ENDO PHARMACEUTICALS INC.
    
    
    
    
    )and PENWEST PHARMACEUTICALS 
CO.,
    
    
    
    
    ))Plaintiffs,
    
    
    ))
    
    
    C.A. No. 09-831-KSH-PSv.
    
    
    
    
    )
    
    
    C.A. No. 09-832-KSH-PS)
    
    
    C.A. No. 09-833-KSH-PSIMPAX LABORATORIES, INC.,
    
    
    
    
    ))Defendant.
    
    
    )
)
)




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Settlement and License Agreement
 1.
    
    Impax, its Affiliates and their respective officers, agents, servants, employees and
attorneys will not, until the applicable Commencement Date (as defined in the Settlement
and License Agreement), engage in the manufacture, use, marketing, offer for sale, or sale
in the United States, or importation into the United States, of any generic version of the
Opana® ER product, except that (a) Impax shall be permitted to manufacture and
market (but not use or sell) such products for a reasonable period of time prior to the
applicable Commencement Date solely for the purpose of selling such products only on or
after the Commencement Date, as set forth in the Settlement and License Agreement, and (b)
Impax may conduct, directly or indirectly, any activities protected under 35 U.S.C. §
271(e)(1). The foregoing shall terminate automatically upon the applicable Commencement
Date for each product as defined in the Settlement and License Agreement.2.
    
    Pursuant to Rules 41(a)(1) and 41(c) of the Federal Rules of Civil Procedure,
plaintiffs, Endo, Penwest and Impax hereby stipulate and agree that the above actions C.A.
Nos. 09-831, 09-832 and 09-833 -KSH-PS, including all claims, counterclaims and
affirmative defenses between Plaintiffs and Impax, are dismissed with prejudice, except as
provided for in sections 2.2 and 8.3 of the Settlement and License Agreement.3.
    
    Each party shall bear its own costs, expenses and attorneys fees in connection with
the above-referenced actions.4.
    
    The parties waive any right of appeal from this Stipulation of Dismissal and Order.5.
    
    The Court retains jurisdiction over this Stipulation of Dismissal and Order, and the
interpretation of the Settlement and License Agreement as it pertains to this Stipulation
of Dismissal and Order, in the event of any dispute concerning it.




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Settlement and License Agreement
 
 Hon. Katharine S. Hayden, U.S.D.J.
  Dechert llpAttorneys for Plaintiffs Endo
Pharmaceuticals, Inc. and Penwest
Pharmaceuticals, Co.
    
    
    
    Attorneys for Defendant and
Counterclaim Plaintiff Impax
Laboratories, Inc.
 By:
    
    /s/ Robert D. Rhoad
    
    
    
    By:Robert D. Rhoad
902 Carnegie Center
Suite 500
Princeton, NJ 08540
Telephone: (609) 955-3200
Martin J. Black
DECHERT LLP
Cira Centre
2929 Arch Street
Philadelphia, PA 19104-2808
Telephone: (215) 994-4000