Document:

SECURITY AGREEMENT

 

SECURITY AGREEMENT,
dated as of February 2, 2012 (the “Agreement”), between Jubilant Cadista Pharmaceuticals Inc., a Delaware
corporation, having its principal place of business at 207 Kiley Drive, Salisbury, MD 21801
(“Debtor”), and ICICI BANK
LIMITED, NEW YORK BRANCH (the “Secured Party”).

 

WITNESSETH:

 

WHEREAS, the Debtor
has borrowed or intends to borrow money from the Secured Party and has executed in favor of the Secured Party a Credit Facility
Agreement (the “Credit Facility Agreement”), a Promissory Note in the principal amount of $8,500,000 (the “Note”)and
certain other agreements and documents, each dated on or about the date hereof; and

 

WHEREAS, it is a
condition precedent to the Secured Party making the loans to the Debtor under the Credit Facility Agreement and the Note that the
Debtor execute and deliver this Agreement to the Secured Party.

 

NOW THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1.         SECURITY INTEREST.

 

(a)    To secure
the Debtor’s full and timely performance of the Obligations, the Debtor hereby grants to the Secured Party a continuing first
priority Lien on and security interest (the “Security Interest”) in all of the Debtor’s right, title and
interest in the following personal assets and properties, whether now owned or hereafter acquired and wherever located:
(a) all Receivables; (b) all General Intangibles (to the extent classified as a current asset in the financial statements); (c)
all Inventory; (d) all Investment Property; (e) all Deposit Accounts, Accounts and Chattel Paper; (f) all Cash; (g) all Goods of
the Debtor; (h) all Intellectual Property (to the extent classified as a current asset in the financial statements);, and
(i) all Proceeds of each of the foregoing and all accessions to, and replacements for, each of the foregoing (collectively,
the “Collateral”). The Security Interest shall be a first priority Lien on and security interest in all of the
Collateral and shall rank pari passu with the Lien and security interest of State Bank of India, New York Branch (hereinafter “State
Bank of India”), until the loan and amounts due to State Bank of India are paid in full and thereafter the Secured Party
shall have a continuing first priority Lien on and security interest in the Collateral.

 

(b)The following terms shall have the following
meanings for purposes of this Agreement:

 

    	 

    	 

    

 

“Account” means any “Account,”
as such term is defined in the UCC now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter
acquires any interest and, in any event, shall include, without limitation, all accounts receivable, book debts, rights to payment
and other forms of obligations (other than forms of obligations evidenced by Chattel Paper, Documents or Instruments) now owned
or hereafter received or acquired by or belonging or owing to the Debtor whether or not arising out of goods or software sold
or services rendered by the Debtor or from any other transaction, whether or not the same involves the sale of goods or services
by the Debtor and all of the Debtor’s rights in, to and under all purchase orders or receipts now owned or hereafter acquired
by it for goods or services, and all of the Debtor’s rights to any goods represented by any of the foregoing, and all monies
due or to become due to the Debtor under all purchase orders and contracts for the sale of goods or the performance of services
or both by the Debtor or in connection with any other transaction (whether or not yet earned by performance on the part of the
Debtor), now in existence or hereafter occurring, including, without limitation, the right to receive the proceeds of said purchase
orders and contracts, and all collateral security and guarantees of any kind given by any Person with respect to any of the foregoing. 

 

“Cash” means all cash, money,
currency, and liquid funds, wherever held, in which the Debtor now or hereafter acquires any right, title, or interest.

 

“Chattel Paper” means any “Chattel
paper,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds
or hereafter acquires any interest.

 

“Deposit Accounts” means any
“Deposit accounts,” as such term is defined in the UCC, and includes any checking account, savings account, or certificate
of deposit, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter acquires any interest.

 

“Documents” means any “Documents,”
as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter
acquires any interest.

 

“General Intangible” means
any “General intangible,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which
the Debtor now holds or hereafter acquires any interest and, in any event, shall include, without limitation, all right, title
and interest that the Debtor may now or hereafter have in or under any contracts, rights to payment, payment intangibles, confidential
information, interests in partnerships, limited liability companies, corporations, joint ventures and other business associations,
permits, goodwill, claims in or under insurance policies, including unearned premiums and premium adjustments, uncertificated securities,
deposit, checking and other bank accounts, but shall not include any Intellectual Property (including the right to receive all
proceeds and damages therefrom), rights to receive tax refunds and other payments and rights of indemnification.

 

“Goods” means any “Goods,”
as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter
acquires any interest.

 

“Instruments” means any “Instrument,”
as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter
acquires any interest.

 

    	 

    	 

    

 

“Intellectual Property” means,
collectively, all rights, priorities and privileges of the Debtor relating to intellectual property, whether arising under United
States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, inventions, patents, patent licenses,
trademarks, trademark licenses and trade secrets (including customer lists), domain names, Web sites and know-how.

 

“Inventory” means any “Inventory,”
as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in which the Debtor now holds or hereafter
acquires any interest, and, in any event, shall include, without limitation, all inventory, goods and other personal property that
are held by or on behalf of the Debtor for sale or lease or are furnished or are to be furnished under a contract of service or
that constitute raw materials, work in process or materials used or consumed or to be used or consumed in the Debtor’s business,
or the processing, packaging, promotion, delivery or shipping of the same, and all finished goods, whether or not the same is in
transit or in the constructive, actual or exclusive possession of the Debtor or is held by others for the Debtor’s account,
including, without limitation, all goods covered by purchase orders and contracts with suppliers and all goods billed and held
by suppliers and all such property that may be in the possession or custody of any carriers, forwarding agents, truckers, warehousemen,
vendors, selling agents or other Persons.

 

“Investment Property” means
any “Investment property,” as such term is defined in the UCC, and includes certificated securities, uncertificated
securities, money market funds and U.S. Treasury bills or notes, now owned or hereafter acquired by the Debtor or in which the
Debtor now holds or hereafter acquires any interest.

 

“Letter of Credit Right” means
any “Letter of credit right,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or
in which the Debtor now holds or hereafter acquires any interest, including any right to payment or performance under any letter
of credit.

 

“Lien” means any mortgage,
deed of trust, pledge, hypothecation, assignment for security, security interest, encumbrance, levy, lien or charge of any kind,
whether voluntarily incurred or arising by operation of law or otherwise, against any property, any conditional sale or other title
retention agreement, any lease in the nature of a security interest, and the filing of any financing statement (other than a precautionary
financing statement with respect to a lease that is not in the nature of a security interest) under the UCC or comparable law of
any jurisdiction.

 

“Obligations” shall mean and
include all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the Debtor to the Secured Party of
every kind and description (whether or not evidenced by any note or instrument and whether or not for the payment of money), direct
or indirect, absolute or contingent, due or to become due, now existing or hereafter arising pursuant to the terms of the Credit
Facility Agreement and the Note owed by the Debtor to the Secured Party, whether in connection with the Note or otherwise, including
without limitation all interest, fees, charges, expenses, attorneys’ fees and accountants’ fees chargeable to the Debtor
or payable by the Debtor thereunder.

 

    	 

    	 

    

 

“Person” means any individual,
sole proprietorship, partnership, joint venture, trust, unincorporated organization, association, corporation, limited liability
company, institution, public benefit corporation, other entity or government (whether federal, state, county, city, municipal,
local, foreign, or otherwise, including any instrumentality, division, agency, body or department thereof).

 

“Proceeds” means “Proceeds,”
as such term is defined in the UCC and, in any event, shall include, without limitation, (a) any and all Accounts, Chattel Paper,
Instruments, cash or other forms of money or currency or other proceeds payable to the Debtor from time to time in respect of the
Collateral, (b) any and all proceeds of any insurance, indemnity, warranty or guaranty payable to the Debtor from time to time
with respect to any of the Collateral, (c) any and all payments (in any form whatsoever) made or due and payable to the Debtor
from time to time in connection with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the
Collateral by any governmental authority (or any Person acting under color of governmental authority), (d) the proceeds, damages,
or recovery based on any claim of the Debtor against third parties (i) for past, present or future infringement of any copyright,
patent or patent license or (ii) for past, present or future infringement or dilution of any trademark or trademark license or
for injury to the goodwill associated with any trademark, trademark registration or trademark licensed under any trademark license
and (e) any and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

 

“Receivables” means all of
the Debtor’s Accounts, Instruments, Documents, Chattel Paper, Supporting Obligations, and letters of credit and Letter of
Credit Rights.

 

“Supporting Obligation” means
any “Supporting obligation,” as such term is defined in the UCC, now owned or hereafter acquired by the Debtor or in
which the Debtor now holds or hereafter acquires any interest.

 

“UCC” means the Uniform Commercial
Code as the same may, from time to time, be in effect in the State of New York; provided, that in the event that, by reason
of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect to, Secured Party’s
Lien on any Collateral is governed by the Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State
of New York, the term “UCC” shall mean the Uniform Commercial Code as enacted and in effect, from time to time, in
such other jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies
and for purposes of definitions related to such provisions.

 

2.          OBLIGATIONS
SECURED. The Security Interest granted hereby secures payment and performance of all debts, loans and liabilities of Debtor
to Secured Party arising under the Note and the Credit Facility Agreement.

 

3.          DEBTOR’S
REPRESENTATIONS AND WARRANTIES. Debtor represents and warrants that:

 

3.1.   Authorization.
The execution, delivery and performance of this Agreement and the Note are within Debtor’s corporate powers, and are not
in contravention of law nor of the terms of Debtor’s Certificate of Incorporation or By-laws, nor of any indenture, agreement
or undertaking to which the Debtor is a party or by which it is bound.

    	 

    	 

    

 

3.2.   Place of Business.
Debtor’s principal place of business is the chief executive office location provided in the first paragraph of this Agreement,
and Debtor keeps its inventory and records concerning accounts, contract rights and other property at that location.

 

3.3.   Title to Collateral.
Other than the Lien and security interest that exists as of the date hereof in favor of State Bank of India, Debtor owns all of
its property and has good, clear and marketable title thereto, free and clear of any and all Liens.

 

3.4.   Collateral and
Perfection. Neither the Debtor nor, to the best of the Debtor’s knowledge, any affiliate (as such term is used in Rule
405 under the Securities Act of 1933, as amended (“Affiliates”)) have performed any acts which might prevent
the Secured Party from enforcing any of the terms of this Agreement or which would limit the Secured Party in any such enforcement.
No collateral is in the possession of any person (other than Debtor) asserting any claim thereto or security interest therein.
The security interests created hereunder constitute valid security interests under the Uniform Commercial Code securing the Obligations
to the extent that a security interest may be created in the Collateral.

 

4.          GENERAL
OBLIGATIONS OF DEBTOR.

 

4.1.   Financing Statements.
Debtor agrees to execute one or more financing statements, to pay the cost of filing the same in all public offices wherever filing
is required by applicable law to perfect a security interest or is deemed by the Secured Party to be necessary or desirable and
to execute such other documents as the Secured Party shall reasonably request (whether or not required by applicable law).

 

4.2.   Insurance.
Debtor has kept, hereby agrees to keep or cause to be kept all the Collateral insured with coverages that is the greater of (i)
as set forth in the Credit Facility Agreement, or (ii) in amounts not less than usually carried by reputable companies of similar
size engaged in a like business, which shall in no event be less than the value of the Collateral. As set forth in the Credit Facility
Agreement, Debtor shall cause its comprehensive, general liability and umbrella insurance policies issued or maintained pursuant
to the Credit Facility Agreement to name the Debtor as named insured and the Secured Party as loss payee without the Secured Party
being liable for premiums or other costs or expenses.

 

4.3.   Inspection.
Debtor will keep accurate and complete records of the Collateral, neither Debtor nor any Affiliates shall move the Collateral without
notice to the Secured Party and the Secured Party or any of its agents shall have the right to inspect the Collateral wherever
located and to visit Debtor’s place or places of business, at reasonable intervals during business hours without Debtor’s
or any Affiliate’s hindrance or delay, to inspect, audit, check and make extracts from any copies of books, records, journals,
orders, receipts and correspondence that relate to the Collateral or to the general financial condition of Debtor or any Affiliate.

 

    	 

    	 

    

 

4.4.  Negative Pledge.
Other than the Lien and security interest that exists as of the date hereof in favor of State Bank of India, the Debtor will not
assign any accounts or other Collateral to any person other than the Secured Party, nor create or permit to be created any lien,
encumbrance or security interest of any kind on any Collateral other than for the benefit of the Secured Party, nor grant or permit
to be granted any corporate guaranty other than for the benefit of the Secured Party, unless authorized by the Secured Party in
writing, except for the security interests contemplated herein in connection with granting of the loans evidenced by the Credit
Facility Agreement and the Note.

 

4.5.  Existence; Perfection.
Debtor will maintain its corporate existence in good standing, comply with all
laws and regulations of the United States or any state or political subdivision thereof, or of any governmental authority (domestic
or foreign) which may have jurisdiction over it or its business. Debtor will not change its name, identity or corporate structure
in any manner unless it shall have given the Secured Party prior notice thereof and obtained the prior written consent of the Security
Party. Debtor will not establish or change the location of its chief executive office or its chief place of business or the locations
where it keeps or holds any Collateral or records relating thereto or in any event change the location of any Collateral if such
change would cause the security interests hereunder to lapse or cease to be perfected.

 

4.6.  Taxes.
Debtor will pay all real and personal property taxes, assessments and charges as well as all franchise, income, unemployment, old
age benefit, withholding, sales and other taxes assessed against it, or payable by it at such times and in such manner as to prevent
any penalty from accruing or any lien or charge from attaching to its property, and will furnish the Secured Party upon request,
receipts or other evidence that deposits or payments have been made.

 

4.7.  Sales.
Debtor will not sell, transfer or dispose of (i) any of the Collateral, except in the ordinary and usual course of its business
consistent with past practices, and/or (ii) more than 25% of the Borrower’s fixed assets existing as of the date of execution
and delivery of this Agreement, during the term and existence of the Agreement, in each case without the prior written consent
of the Secured Party.

 

4.8.  Continuing
Representations. The warranties and representations made by Debtor in this Agreement are continuing. In the event that any
obligation, representation or warranty is no longer true or correct, Debtor will immediately notify the Secured Party in writing.

 

5.          DEFAULT.
The Debtor shall be in default under this Agreement and the Note upon the happening of any of the following events or conditions,
without demand or notice (which events of default shall be in addition to the events of default set forth in the Credit Facility
Agreement):

 

5.1.       Failure of Debtor
to pay when due any Obligation, whether by maturity, acceleration or otherwise;

 

5.2.       Failure of Debtor
to perform any of its agreements, warranties or representations in this Agreement, Credit Facility Agreement, the Note or any other
Credit Documents (as such term is defined in the Credit Facility Agreement);

 

5.3.       Loss or theft or
unauthorized sale or encumbrance of any portion of the Collateral, or the making of any levy on, or seizure or attachment of any
portion of the Collateral; or

 

    	 

    	 

    

 

5.4.      The occurrence
of an event of default under the Credit Facility Agreement.

 

6.        SECURED PARTY
RIGHTS UPON DEFAULT. The Secured Party shall upon the occurrence of a default hereunder and at any time thereafter, without
presentment, demand, notice, protest or advertisement of any kind have the following rights in addition to all other rights hereunder
or under any other agreement, document or instruments executed between the Debtor and the Secured Party (this clause, and each
and every subdivision thereof, is subject to the terms and conditions of the Inter Creditor Agreement between the parties hereto
and State Bank of India, New York Branch):

 

6.1.  Acceleration.
The Secured Party may make all Obligations under this Agreement, the Credit Facility Agreement and/or the Note immediately due
and payable without presentment, demand, protest, hearing or notice of any kind and may exercise the rights of a secured party
under law or under the terms of this Agreement.

 

6.2.   Possession.
The Secured Party may enter and take possession of any or all Collateral, and in the Secured Party sole discretion operate and
use Debtor’s Collateral hereunder, complete work in process, and sell, lease or license the Collateral to third persons or
associations without being liable to Debtor on account of any losses, damage or depreciation that may occur as a result thereof
so long as such Secured Party shall act in good faith; and at Secured Party option and without notice to Debtor (except as specifically
herein provided) the Secured Party may sell, lease, assign and deliver the whole or any part of the Collateral, or any substitute
therefor or any addition thereto, at public or private sale, for cash, upon credit, or for future delivery, at such prices and
upon such terms as such Secured Party deems advisable, including without limitation, the right to sell or lease in conjunction
with other property, real or personal, and allocate the sale or lease proceeds among the items of property sold without the necessity
of the Collateral being present at any such sale or lease, or in view of prospective purchasers thereof. Secured Party shall give
Debtor at least five (5) business days’ notice by hand delivery at or by United States certified mail, postage prepaid (in
which event notice shall be deemed to have been given when so delivered), to the address specified herein, of the time and place
of any public or private sale or other disposition unless the Collateral is perishable, threatens to decline speedily in value,
or is the type customarily sold in a recognized market, in which case no notice shall be required. Upon such sale, Secured Party
may become the purchaser of the whole or any part of the Collateral, discharged from all claims and free from any right of redemption.
In case of any such sale by Secured Party of all or any of said Collateral on credit or for future delivery, property so sold may
be retained by the Secured Party until the selling price is paid by the purchaser. The Secured Party shall incur no liability in
case of the failure of the purchaser to take up and pay for the property so sold. In case of any such failure, the said property
may again be sold.

 

    	 

    	 

    

 

6.3.  Power
of Attorney and Notification. If an event of default has occurred and
is continuing, at Debtor’s expense, Secured Party in their own name or in the name of others may communicate with
account debtors in order to verify with them to the Secured Party’s satisfaction the existence, amount and terms of any accounts
or contract rights and also notify account debtors that Collateral has been assigned to Secured Party and that payments shall be
made directly to Secured Party. If an event of default has occurred and is continuing, upon
request of Secured Party, Debtor will so notify such account debtors and will indicate on all billings to such account debtors
that their accounts must be paid to the Secured Party. If an event of default has occurred and is continuing, Debtor does hereby
appoint the Secured Party and its agents as Debtor’s attorney-in-fact: to collect,
compromise, endorse, sell or otherwise deal with the Collateral or proceeds thereof in its own name or in the name of the Debtor;
to endorse the name of Debtor upon any notes, checks, drafts, money orders, or other instruments, documents, receipts or Collateral
that may come into its possession and to apply the same in full or part payment of any amounts owing to the
Secured Party; to sign and endorse the name of Debtor upon any documents, instruments, drafts against account debtors, assignments,
verifications and notices in connection with Accounts, and any instrument or document relating thereto or to Debtor’s rights
therein; and to give written notice to any office and officials of the United States Post Office to effect such change or changes
of address that all mail addressed to Debtor may be delivered directly to Secured Party. If an
event of default has occurred and is continuing, Debtor hereby grants to its said attorney-in-fact full power to do any
and all things necessary to be done in and about the premises as fully and effectually as Debtor might or could do, and hereby
ratifies all that its attorney-in-fact shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled
with an interest and is irrevocable for the term of this Agreement for all transactions hereunder and thereafter as long as the
Debtor may be indebted to any Secured Party under
the Note or the Credit Facility Agreement. 

 

6.4.  Application of
Proceeds. Any and all proceeds of any Collateral realized or obtained by Secured Party upon exercise of its rights and remedies
hereunder, shall be applied, after payment of any and all costs and expenses, fees and commission and taxes of such sale, collection
or other realization, in accordance with the following:

 

(a)With respect
to any surplus proceeds of any Collateral then remaining, to the payment of the Obligations, including any interest thereon, and
any costs, fees or expenses incurred in connection with the administration, collection or enforcement thereof, including, without
limitation, reasonable attorney’s fees and other professionals’ out of pocket costs and fees, proportionately to the
respective amounts then due and owing under their respective claims until payment and satisfaction in full thereof; and

 

(b)Any
surplus remaining after application as provided in paragraph (a) above, shall be paid to the Debtor, or its successors or assigns,
or to whomsoever may be lawfully entitled to receive the same.

 

7.      DEBTOR’S
OBLIGATION TO PAY EXPENSES OF SECURED PARTY. Debtor shall pay to Secured Party on demand any and all expenses (including,
but not limited to, fees and expenses (including all reasonable attorneys fees), and all other
expenses of like or unlike nature) that may be incurred or paid by Secured Party to obtain or enforce payment of any account
against the account debtor, Debtor or any guarantor or surety of or in the prosecution or defense of any action or concerning any
matter growing out of or connected with the subject matter of this Agreement, the Obligations, the Collateral or any of Secured
Party’s rights or interests therein or thereto. All such expenses may be added to the principal amount of any indebtedness
owed by Debtor to the Secured Party shall constitute part of the Obligations secured hereby.

    	 

    	 

    

 

8.     INDEMNIFICATION.
The Debtor agrees to indemnify and hold harmless the Secured Party and each of its officers, directors, agents, advisors and
employees from and against any and all claims, damages, liabilities, costs and expenses (including without limitation, reasonable
fees, expenses and disbursements of counsel) that may be incurred by or asserted against the Secured Party in connection with or
arising out of any investigation, litigation or proceeding, whether threatened or initiated, relating to the Collateral or this
Agreement, whether or not the Secured Party is a party thereto; provided however, that the Debtor shall not be required to indemnify
any such person from or against any portion of such claims, damages, liabilities or expenses found by final judgment after all
appeals by a court of competent jurisdiction to have arisen out of gross negligence or willful misconduct of such person.

 

9.     CONTINUOUS
PERFECTION. The Debtor will not change its name, identity or corporate structure in any manner and will not change its
principal place of business or chief executive office or the places where it keeps the Collateral or the records concerning the
Collateral, unless and until it obtains the written consent of the Secured Party to any such change. If the Secured Party grants
its consent to any such change, the Debtor will take all action necessary or appropriate in the Secured Party's sole discretion
to amend each financing statement or continuation statement and otherwise to cause the Secured Party to continue to maintain its
first perfected lien on, and security interest in, the Collateral.

 

10.    WAIVERS.
Debtor waives demand, presentment, protest, notice of nonpayment and all other notices. No delay or omission by any Party in exercising
any rights shall operate as a waiver of such right or any other right. Waiver on any one occasion shall not be construed as a bar
to or waiver of any right or remedy on any future occasion. Secured Party rights and remedies, whether evidenced hereby or by any
other agreement, instrument or paper, shall be cumulative and may be exercised singularly or concurrently.

 

11.    FURTHER ASSURANCES.
The Debtor, at its own expense, shall do, make, execute and deliver all such additional and further acts, deeds, assurances, documents,
instruments and certificates as Secured Party reasonably require, including, without limitation, (a) executing, delivering and
filing financial statements and continuation statements under the Uniform Commercial Code as applicable in any relevant jurisdiction,
(b) obtaining governmental and other third party consents and approvals, and (c) obtaining waivers from mortgagees and landlords.

 

12.   CHOICE
OF LAW; JURISDICTION. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
AND ENFORCED IN ACCORDANCE WITH THE LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK. The undersigned hereby irrevocably
consent and submit to the jurisdiction and venue of any court of competent jurisdiction sitting in the City, County and State of
New York for adjudication of any dispute concerning this Agreement and all other documents provided for herein. To the extent permitted
by Law (as such term is defined in the Credit Facility Agreement), the Secured Party and the
undersigned hereby also irrevocably waive any objection, including, without limitation, any objection to the laying of venue or
based on the grounds of forum non conveniens, that may now or hereafter have to the bringing of any such action or proceeding in
such jurisdiction. The scope of this waiver is intended to be all encompassing of any and all disputes that may be filed in any
court and that relate to the subject matter of this transaction, including without limitation, contract claims, tort claims, breach
of duty claims and all other common law and statutory claims. Each party acknowledges that this waiver is a material inducement
to enter into a business relationship, that each has already relied on the waiver in their related future dealings.

 

    	 

    	 

    

 

13.    WAIVER OF
JURY TRIAL. THE DEBTOR HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR THE
NOTE OR THE RELATIONSHIP ESTABLISHED HEREUNDER, THEREUNDER.

 

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IN WITNESS WHEREOF,
the parties hereto have signed this Agreement as of the day and year first above written.

 

	DEBTOR:
	 
	JUBILANT CADISTA PHARMACEUTICALS INC.
	 
	By: /s/ Kamal Mandan
	Name : KAMAL MANDAN
	Title: Chief Financial Officer
	 
	SECURED PARTY:
	 
	ICICI BANK LIMITED, NEW YORK BRANCH
	 
	By:  /s/ Ashish Bafna
	Name: ASHISH BAFNA
	Title: Assistant General Manager
	 
	Address: 500 Fifth Avenue, 28th Floor 
	New York, NY 10110
	Facsimile Number:SUBORDINATION
AGREEMENT 

 

This
SUBORDINATION AGREEMENT (the  “Agreement”) made as of February 2, 2012, between Jubilant Cadista Pharmaceuticals
Inc., a Delaware corporation ("Borrower"), having an address at 207 Kiley Drive, Salisbury, MD 21801 (the "Debtor"),
Cadista Holdings Inc., a Delaware corporation, having an address at 207 Kiley Drive, Salisbury, MD 21801 and which is the
direct parent company of the Debtor ("Parent Company" or “Subordinator”), and ICICI Bank Limited, New
York Branch (the "Creditor").

 

1.
         Debt. The Subordinator warrants and represents to the
Creditor that the Subordinator is the direct or indirect owner of 100% of the shares of capital stocks of the Debtor and the Debtor
is or may in the future be indebted to Subordinator, without any defense, offset, or counterclaim.

 

2.          Subordination.
To induce the Creditor to lend or advance moneys or otherwise
extend credit to the Debtor pursuant to a Credit Facility Agreement dated as of the date hereof and executed between the Debtor
and the Creditor (the “Facility Agreement”), and to better secure the Creditor in respect thereof, the Subordinator
hereby subordinates the indebtedness owed by the Debtor to the Subordinator as well as any other indebtedness which the Debtor
may now or hereafter owe to the Subordinator to all debts, demands, claims, liabilities, or causes of action for which the Debtor
may now or at any time hereafter in any way be liable to the Creditor. The Debtor shall not pay, and the Subordinator shall not
accept payment of or assert or seek to enforce against the Debtor, any indebtedness now or hereafter owing by the Debtor to the
Subordinator or any collateral or security thereto appertaining, unless and until the Creditor has been paid in full all such
debts, claims, liabilities, demands, or causes of action now or hereafter owing to the Creditor by the Debtor. In the event of
any receivership, insolvency or bankruptcy proceedings instituted by or against Debtor, or assignment or trust mortgage of any
of Debtor’s assets for the benefit of Debtor’s creditors, or execution sale of any of its assets, or proceedings for
reorganization of, or readjustment of debt by, Debtor, or marshaling of Debtor’s assets or proceedings, whether or not judicial,
for liquidation, dissolution or other winding up of Debtor, or any distribution, division or application, partial or complete,
voluntary or involuntary, by operation of law or otherwise, of all or any part of Debtor’s assets occurring for any reason,
Subordinator will, in any such case, assign and pay over or deliver to Creditor, to the extent necessary to satisfy the then existing
indebtedness and liabilities of Debtor to Creditor in full with interest (plus expenses of collection), any and all dividends,
payments and other distributions with respect to the subordinated indebtedness to which Subordinator would be entitled, of any
kind or character, either in cash, property or securities, to be held by Creditor and applied by it for its own account to the
extent of its rights hereunder

 

3.          Assignment.
As further security for the Creditor, the Subordinator hereby assigns to the Creditor any and all such indebtedness
now or hereafter owing by the Debtor to the Subordinator and any all collateral or security therefor. The Subordinator agrees
to assign, endorse and deliver to and deposit with the Creditor any and all notes or other obligations or instruments evidencing
any such indebtedness and all collateral and security thereto appertaining, hereby irrevocably authorizing the Creditor to collect,
receive, enforce and accept any and all sums or distributions of any kind that may become due, payable, or distributable on or
in respect of such indebtedness, either principal or interest, or such collateral or security, whether paid directly or indirectly
by the debtor, paid or distributed in any bankruptcy, receivership, reorganizations, or dissolution proceedings or otherwise.
The Subordinator irrevocably authorizes the Creditor in its sole discretion to make and present claims therefor in any such proceedings,
in the name of either the Creditor or the Subordinator, and in case any such sums or distributions come into the Subordinator's
hands the Subordinator shall promptly turn the same over to the Creditor.

 

    	 

    	 

    

  

4.          Representations.
The Subordinator hereby represents and warrants that:

 

		(a)	It
                                                                                                                               has
                                                                                                                               not
                                                                                                                               assigned
                                                                                                                               or
                                                                                                                               transferred
                                                                                                                               any
                                                                                                                               of
                                                                                                                               the
                                                                                                                               indebtedness
                                                                                                                               or
                                                                                                                               any
                                                                                                                               interest
                                                                                                                               therein
                                                                                                                               or
                                                                                                                               any
                                                                                                                               such
                                                                                                                               collateral
                                                                                                                               or
                                                                                                                               security
                                                                                                                               to
                                                                                                                               any
                                                                                                                               other
                                                                                                                               person
                                                                                                                               and
                                                                                                                               that
                                                                                                                               it
                                                                                                                               shall
                                                                                                                               make
                                                                                                                               no
                                                                                                                               assignment
                                                                                                                               or
                                                                                                                               transfer
                                                                                                                               thereof.
                                                                                                                               

		(b)	All
                                                                                                                                                        notes
                                                                                                                                                        or
                                                                                                                                                        written
                                                                                                                                                        obligations
                                                                                                                                                        taken
                                                                                                                                                        to
                                                                                                                                                        evidence
                                                                                                                                                        the
                                                                                                                                                        indebtedness
                                                                                                                                                        or
                                                                                                                                                        all
                                                                                                                                                        renewal
                                                                                                                                                        notes
                                                                                                                                                        or
                                                                                                                                                        written
                                                                                                                                                        obligations
                                                                                                                                                        shall
                                                                                                                                                        be
                                                                                                                                                        endorsed
                                                                                                                                                        with
                                                                                                                                                        a
                                                                                                                                                        proper
                                                                                                                                                        notice
                                                                                                                                                        of
                                                                                                                                                        this
                                                                                                                                                        Agreement.

		(c)	The
                                                                                                                               obligations
                                                                                                                               expressed
                                                                                                                               to
                                                                                                                               be
                                                                                                                               assumed
                                                                                                                               by
                                                                                                                               it
                                                                                                                               in
                                                                                                                               this
                                                                                                                               Agreement
                                                                                                                               are
                                                                                                                               legal,
                                                                                                                               valid,
                                                                                                                               binding
                                                                                                                               and
                                                                                                                               enforceable
                                                                                                                               obligations
                                                                                                                               of
                                                                                                                               the
                                                                                                                               Subordinator.
                                                                                                                               

		(d)	It
                                                                                                                                                       has
                                                                                                                                                       the
                                                                                                                                                       power
                                                                                                                                                       to
                                                                                                                                                       enter
                                                                                                                                                       into,
                                                                                                                                                       perform
                                                                                                                                                       and
                                                                                                                                                       deliver,
                                                                                                                                                       and
                                                                                                                                                       has
                                                                                                                                                       taken
                                                                                                                                                       all
                                                                                                                                                       necessary
                                                                                                                                                       corporate
                                                                                                                                                       and
                                                                                                                                                       other
                                                                                                                                                       action
                                                                                                                                                       to
                                                                                                                                                       authorize
                                                                                                                                                       its
                                                                                                                                                       entry
                                                                                                                                                       into,
                                                                                                                                                       performance
                                                                                                                                                       and
                                                                                                                                                       delivery
                                                                                                                                                       of,
                                                                                                                                                       this
                                                                                                                                                       Agreement,
                                                                                                                                                       including
                                                                                                                                                       without
                                                                                                                                                       limitation,
                                                                                                                                                       the
                                                                                                                                                       consent
                                                                                                                                                       the
                                                                                                                                                       Boards
                                                                                                                                                       of
                                                                                                                                                       the
                                                                                                                                                       Parent
                                                                                                                                                       Company
                                                                                                                                                       and
                                                                                                                                                       the
                                                                                                                                                       Ultimate
                                                                                                                                                       Parent
                                                                                                                                                       that
                                                                                                                                                       are
                                                                                                                                                       attached
                                                                                                                                                       hereto
                                                                                                                                                       as
                                                                                                                                                       Exhibit
                                                                                                                                                       A.

		(e)	The
                                                                                                                                                     entry
                                                                                                                                                     into
                                                                                                                                                     and
                                                                                                                                                     performance
                                                                                                                                                     by
                                                                                                                                                     it
                                                                                                                                                     of,
                                                                                                                                                     and
                                                                                                                                                     the
                                                                                                                                                     transactions
                                                                                                                                                     contemplated
                                                                                                                                                     by,
                                                                                                                                                     this
                                                                                                                                                     Agreement
                                                                                                                                                     do
                                                                                                                                                     not
                                                                                                                                                     and
                                                                                                                                                     will
                                                                                                                                                     not
                                                                                                                                                     conflict
                                                                                                                                                     with:

		(i)	any
                                                                                                                                                        law
                                                                                                                                                        or
                                                                                                                                                        regulation
                                                                                                                                                        applicable
                                                                                                                                                        to
                                                                                                                                                        it
                                                                                                                                                        or
                                                                                                                                                        binding
                                                                                                                                                        on
                                                                                                                                                        its
                                                                                                                                                        property
                                                                                                                                                        or
                                                                                                                                                        assets;

		(ii)	its
                                                                                                                                                         constitutional
                                                                                                                                                         documents;
                                                                                                                                                         and/
                                                                                                                                                         or

		(iii)	any
                                                                                                                                                          agreement
                                                                                                                                                          or
                                                                                                                                                          instrument
                                                                                                                                                          binding
                                                                                                                                                          on
                                                                                                                                                          it
                                                                                                                                                          or
                                                                                                                                                          any
                                                                                                                                                          of
                                                                                                                                                          its
                                                                                                                                                          property
                                                                                                                                                          or
                                                                                                                                                          assets.

		(f)	It
                                                                                                                                                     has
                                                                                                                                                     obtained
                                                                                                                                                     as
                                                                                                                                                     of
                                                                                                                                                     the
                                                                                                                                                     date
                                                                                                                                                     hereof,
                                                                                                                                                     all
                                                                                                                                                     authorizations,
                                                                                                                                                     consents,
                                                                                                                                                     permits
                                                                                                                                                     and
                                                                                                                                                     licenses
                                                                                                                                                     required:

		(i)	to
                                                                                                                                                        enable
                                                                                                                                                        it
                                                                                                                                                        lawfully
                                                                                                                                                        to
                                                                                                                                                        enter
                                                                                                                                                        into,
                                                                                                                                                        exercise
                                                                                                                                                        its
                                                                                                                                                        rights
                                                                                                                                                        and
                                                                                                                                                        comply
                                                                                                                                                        with
                                                                                                                                                        its
                                                                                                                                                        obligations
                                                                                                                                                        in
                                                                                                                                                        this
                                                                                                                                                        Agreement;

		(ii)	to
                                                                                                                                                         make
                                                                                                                                                         this
                                                                                                                                                         Agreement
                                                                                                                                                         enforceable
                                                                                                                                                         against
                                                                                                                                                         Subordinator;
                                                                                                                                                         and

		(iii)	to
                                                                                                                                                          enable
                                                                                                                                                          it
                                                                                                                                                          to
                                                                                                                                                          carry
                                                                                                                                                          on
                                                                                                                                                          its
                                                                                                                                                          business,
                                                                                                                                                          trade
                                                                                                                                                          and
                                                                                                                                                          ordinary
                                                                                                                                                          activities,
                                                                                                                                                          have
                                                                                                                                                          been
                                                                                                                                                          obtained
                                                                                                                                                          or
                                                                                                                                                          effected
                                                                                                                                                          and
                                                                                                                                                          are
                                                                                                                                                          in
                                                                                                                                                          full
                                                                                                                                                          force
                                                                                                                                                          and
                                                                                                                                                          effect.

5.          Claims.
The Subordinator hereby waives and postpones in favor of the Creditor all claims of every kind and description that the Subordinator
may now or hereafter have against the Debtor until the payment by the Debtor to the Creditor of all debts, claims, demands, or
causes of action of every character and description that the Creditor may now or hereafter have against the Debtor, whether arising
hereunder or in any other manner.

 

6.           Waiver.
The Subordinator waives notice of acceptance hereof, notice of the creation of any indebtedness or liability of the
Debtor to the Creditor, the giving or extension of credit to the Debtor, or the taking or releasing of security for the payment
thereof, and waives presentment, demand, protest, notice of protest or default, and all other notices to which the Subordinator
might otherwise be entitled.

 

    	2

    	 

    

  

7.
        Continuance of Agreement. This
Agreement and the obligations of the Debtor and the Subordinator and the rights and privileges to the Creditor hereunder shall
continue until payment in full of all claims and amounts due to the Creditor from the Debtor notwithstanding any action or non
action of the Creditor with respect thereto or any collateral therefor and any guarantees thereof..

 

8.
        Subrogation. The Subordinator shall be
subrogated to all rights of Creditor against the Debtor in respect of any amount paid to Creditor by the Subordinator under this
Agreement, provided that, the Subordinator agrees that until the date that all of the obligations of the Debtor under the Facility
Agreement are indefeasibly paid in full, the Subordinator shall not exercise any right or remedy against the Debtor in respect
of any of the obligations of the Debtor under the Facility Agreement or any security therefore arising by reason of any performance
by the Subordinator of this Agreement, whether by subrogation or otherwise. If any amounts are paid to the Subordinator in violation
of the foregoing limitation, then such amounts shall be held in trust for the benefit of the Creditor, and shall forthwith be
paid to the Creditor to reduce the amount of the obligations of the Debtor under the Facility Agreement, whether matured or unmatured.

 

9.
         Binding effect. This
Agreement shall be binding on the Subordinator, and its successors and permitted assigns, and shall inure to the benefit of the
Creditor, its successors and assigns.

 

10.
       Entire agreement. This Agreement
supersedes all agreements previously made between the parties relating to the subject matter covered by this Agreement .

 

11.        Notices.
All notices or other documents under this Agreement shall be in writing and delivered personally or mailed by certified mail,
postage prepaid, addressed to the parties at their last known addresses.

 

12.        Non-waiver.
No delay or failure by a party to exercise any right under this Agreement, and no partial or single exercise of that right,
shall constitute a waiver of that or any other right unless otherwise expressly provided herein.

 

13.       Headings.
Headings in this agreement are for convenience only and shall not be used to interpret or construe its provisions.

 

14.       Governing
law. This agreement shall be construed in accordance with and governed by the laws of the State of New York.

 

15.       Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument.

 

16.      
Costs and Fees. The Subordinator and Debtor jointly and/or severally promise to pay all reasonable out-of -pocket costs
and expenses (including without limitation reasonable counsel fees and expenses), in connection with the enforcement (whether
through negotiations, legal proceedings or otherwise) of this Agreement, whether or not a lawsuit is filed or commenced.

 

    	3

    	 

    

 

17.
     Jurisdiction. This Agreement shall be governed by, and
construed and enforced in accordance with, the internal laws, excluding any laws regarding the conflict of laws, of the State
of New York. The Subordinator and the Debtor hereby irrevocably consents and submits to the exclusive jurisdiction and venue of
the Federal District Court or State Court of competent jurisdiction sitting in the New York County, State of New York for adjudication
of any dispute concerning this Agreement and all other documents provided for herein. TO THE FULLEST EXTENT PERMITTED BY LAW,
THE PARTIES HEREBY IRREVOCABLY WAIVE ANY RIGHT TO A TRIAL BY JURY, AND ANY OBJECTION, INCLUDING, WITHOUT LIMITATION, ANY OBJECTION
TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT THEY MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF
ANY SUCH ACTION OR PROCEEDING IN SUCH JURISDICTION.

 

*************************

 

    	4

    	 

    

 

IN
WITNESS WHEREOF the parties have signed this agreement the day and year first above written.

 

	 	Jubilant
    Cadista PharmaceuticalS Inc.
	 	 
	 	By:	/
    s / Kamal Mandan
	 	Name: 
    KAMAL MANDAN
	 	Title:
    CHIEF FINANCIAL OFFICER
	 	 
	 	Cadista
    HoldingS Inc.
	 	 
	 	By:
    /s/ Kamal Mandan
	 	Name:
    KAMAL MANDAN
	 	Title:
    CHIEF FINANCIAL OFFICER
	 	 
	 	ICICI
    BANK LIMITED, NEW YORK BRANCH
	 	 
	 	By:
    /s/ Ashish Bafna
	 	Name:
    ASHISH BAFNA
	 	Title:
    ASSISTANT GENERAL MANAGER

 

    	5

    	 

    

 

Exhibit
A

 

Board
Consents

 

    	6

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