Document:

Ex 10.39.4-NovartisTerminationAgreement

Exhibit  10.39.4

TERMINATION AGREEMENT

RELATING TO THE MASTER DEVELOPMENT AND TOLL MANUFACTURING AGREEMENT

This Termination Agreement (this “Termination Agreement”) is entered into as of December 31, 2012 (“Termination Date”), by and between Endo Pharmaceuticals Inc., a Delaware corporation having a principal place of business at 100 Endo Drive, Chadds Ford, Pennsylvania 19317 (“Endo”), and Novartis Consumer Health, Inc., a Delaware corporation having a principal place of business at 200 Kimball Drive, Parsippany, New Jersey 07054 (“NCH”).  Each of NCH and Endo is referred to herein individually as a “Party” and collectively as the “Parties.”

WHEREAS, the Parties entered into a Master Development and Toll Manufacturing Agreement, dated May 3, 2001 (as amended, the “Master Agreement”); and

WHEREAS, Endo and NCH desire to terminate the Master Agreement.

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

		
	1.
	Unless set forth herein, the capitalized terms contained in this Termination Agreement shall have the meanings set forth in the Master Agreement.

		
	2.
	Effective as of the Termination Date, the Master Agreement and any outstanding purchase orders issued thereunder, shall be terminated, rendered unenforceable and superseded by this Agreement and Release; provided, however, that those terms that expressly survive pursuant to Section 19.6 of the Master Agreement (and only those terms) shall remain in full force and effect.  The Parties acknowledge and agree that the termination of the Master Agreement does not give rise a claim for liquidated damages under Section 19.2 of the Master Agreement.

		
	3.
	NCH agrees to use its reasonable efforts to assist Endo in transitioning the Products from the Lincoln Facility to a third-party manufacturer designated by Endo in accordance with the terms of the Master Agreement, subject to the Endo’s agreement to reimburse NCH for actual costs incurred in connection therewith.  NCH and Endo agree to work together in good faith to agree on the details of such transition in a written transition agreement.

		
	4.
	Endo agrees to remove from the NCH facility in Lincoln, Nebraska (“Lincoln Facility”), at its expense, all Endo manufacturing equipment and other materials belonging to Endo; it being understood that Endo shall have no obligation to remediate any damage that may occur to the Lincoln Facility as a result of such removal unless such damage is the result of Endo’s (or its representatives’) negligence.

Exhibit  10.39.4

		
	5.
	Endo has option (but not the obligation) to claim all right, title and interest in the blister packaging machine used for the packaging of Percocet 5mg blister (HUD pack) and the packaging of EN3258 (the “Blister Machine”); provided, that Endo exercises such option within 60 days of the Settlement Effective Date by sending a written exercise notice to NCH. If Endo exercises its option to claim title to the Blister Machine within the foregoing 60-day period, then Endo will have 30 days from the date of its option notice to arrange and pay for removal and transportation of the Blister Machine out of the Lincoln Facility; it being understood that Endo shall have no obligation to remediate any damage that may occur to the Lincoln Facility as a result of such removal and unless such damage is the result of Endo’s (or its representatives’) negligence.  In the event Endo does not exercise its option to claim title in the Blister Machine within such 60-day period or fails to remove the Blister Machine in the 30- day period following exercise of its option, all right, title and interest in the Blister Machine shall revert to NCH and NCH may use and dispose of such Blister Machine without obligation to Endo.

		
	6.
	This Termination Agreement:  (a) shall be governed by and construed in accordance with the laws of the State of New York without giving effect to its principles or rules of conflict of laws; (b) may be executed in one or more counterparts, each of which shall be an original, but all of which together shall constitute one instrument; (c) may be amended or supplemented only  by  written  instrument  signed  by  the  Parties  hereto;  and  (d)  constitutes  the  entire agreement and understanding of the Parties with respect to its subject matter and supersedes all oral communications and prior writings with respect thereto.  For the avoidance of doubt, nothing in this Termination Agreement shall be deemed to amend, modify, delete or extend the disclaimers of warranties and limitations of liability in Sections 13.2, 13.3 and 13.4 of the Master  Agreement,  which  disclaimers  and  limitations  shall  apply  to  this  Termination Agreement as if set forth in full herein.

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Exhibit  10.39.4

IN WITNESS WHEREOF, Endo and NCH have executed this Termination Agreement as of the
Termination  Date.

	
					
	ENDO PHARMACEUTICALS INC.
	 
	NOVARTIS CONSUMER HEALTH, INC.

	 
	 
	 
	 
	 

	By:
	/S/ David P. Holveck
	 
	By:
	/S/ Greg Tole

	Name:
	David P. Holveck
	 
	Name:
	Greg Tole

	Title:
	President & Chief Executive Officer
	 
	Title:
	General Counsel - OTC

3EX 10.139.1-GrunenthalAmendment

Exhibit 10.139.1

The confidential portions of this exhibit have been filed separately with the Securities and Exchange Commission pursuant to a confidential treatment request in accordance with Rule 24b-2 of the Securities and Exchange Act of 1934, as amended.  REDACTED PORTIONS OF THIS EXHIBIT ARE MARKED BY AN ***.

FIRST AMENDMENT TO DEVELOPMENT, LICENSE AND SUPPLY AGREEMENT

This First Amendment to Development, License and Supply Agreement (this “Amendment”) is entered into as of December 19, 2012 (“Date of Amendment”) by and between ENDO PHARMACEUTICALS INC., a Delaware corporation, with its principal offices located at 100 Endo Boulevard, Chadds Ford, Pennsylvania 19317, United States of America (“ENDO”) and Grünenthal GMBH, a company having its principal office at Zieglerstraße 6, 52078 Aachen, Federal Republic of Germany (“GRÜNENTHAL”).  ENDO and GRÜNENTHAL may be referred to herein individually as a “Party” or collectively as the “Parties.”  Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Agreement.
WHEREAS, the Parties entered into a Development, License and Supply Agreement dated as of December 18, 2007 (“Agreement”), relating to the development, marketing and manufacturing of pharmaceutical products containing Oxymorphone and incorporating GRÜNENTHAL’s tamper resistant formulation technology; and

WHEREAS, the Parties desire to amend the Agreement to reflect the Parties’ agreement as to the following:

		
	1.
	ENDO shall be responsible for the planning of packaging  of finished Product and routine packaging quality obligations;

		
	2.
	GRT shall reimburse ENDO for the cost of packaging based on the third party packaging related invoices incurred by Endo;

		
	3.
	ENDO shall charge GRÜNENTHAL a one-time fee for services provided in 2012 (after deduction for GRÜNENTHAL’s expenses related to the accelerated ramp up of manufacturing in the first half of 2012) and a quarterly handling fee for packaging services commencing in 2013; and

		
	4.
	Include a Floor Price for the *** and *** dosage form of the Product.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises made herein and the mutual benefits to be derived therefrom, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Parties hereto, intending to be legally bound, agree as follows:

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Exhibit 10.139.1

		
	I.
	The Agreement is hereby amended as follows:

		
	1.
	The following new Section 4.2.1(g) shall be added:

“Notwithstanding any other provision of this Agreement, Endo shall be responsible for the planning of packaging of finished Product and routine packaging quality obligations, and shall be solely responsible for communications with the contract packager. The Quality Assurance Agreement between the parties shall be amended to reflect the changed responsibilities of the Parties with respect to packaging within thirty (30) days of the Date of this Amendment.”

		
	2.
	The following new Section 5.19 shall be added:

The Parties agree that GRÜNENTHAL shall reimburse ENDO for the costs invoiced to ENDO by third parties (including the current Product packager, Sharp) for Product packaging related expenses, plus a services fee.  

For 2012, GRÜNENTHAL shall reimburse Endo all such third party expenses plus an additional amount of $***, which payment shall be payable within thirty (30) days of the Date of Amendment. The amount of $*** represents a fee of $*** for Endo packaging management services performed in 2012, from which fee $*** shall be deducted in reimbursement of GRÜNENTHAL’s extraordinary expenses associated with its accelerated ramp up of manufacturing in the first half of 2012. The parties agree that such amounts represent payment in full for Endo’s 2012 packaging management services and GRÜNENTHAL’s 2012 accelerated manufacturing expenses.  

In addition, commencing January 1, 2013, GRÜNENTHAL shall reimburse Endo all such third party packaging related expenses plus a quarterly handling fee of USD $***, which shall be paid by GRÜNENTHAL to Endo for packaging management services. Such quarterly services fee and out-of-pocket expense reimbursement shall be made quarterly in USD on the dates when transfer price payment is due pursuant to Article 5.14 of the Agreement. Endo shall submit to GRÜNENTHAL a corresponding invoice within thirty (30) days after the end of each Calendar Quarter accompanied by copies of the corresponding third party invoices for Product packaging related expenses during the recent Calendar Quarter. The parties shall negotiate in good faith an appropriate adjustment to the quarterly fee if the volume of Product converted (based on the number of batches requested in a purchase order for 3 months supply) increases or decreases by ***% from the Product volumes for third quarter of 2012. 

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Exhibit 10.139.1

		
	3.
	ENDO shall use commercially reasonable efforts to limit any increase of packager expenses of Endo ́s packager to the Producer Price Index (Pharmaceutical Preparations, ethical PCU2834#), published by the United States Department of Labor, Bureau of Labor Statistics (“PPI”). Endo shall promptly notify GRÜNENTHAL in writing of a rate increase for Product packaging services by Endo’s third party packager. In the event that the rate for packaging services increases by more than the PPI for the previous twelve months, ***. 

		
	4.
	Both parties shall have the right to terminate Sections 1-3 of this Amendment upon at least *** (***) months prior written notice, provided that such notice may not be delivered before July 1, 2013. 

		
	5.
	Both parties shall have the right to terminate Sections 1-3 of this Amendment for material breach of such Sections 1-3 in accordance with the terms of Section 18.1(b) of the Agreement.

		
	6.
	GRÜNENTHAL shall be responsible for the Endo packaging management  fees and all third party packaging related expenses for Product  incurred by Endo before the effective date of any termination of Sections 1-6 of this Amendment.  Upon the effective date of a termination of Sections 1-6 of this Amendment, such Amendment Sections shall cease to be in force and effect and the original contract terms modified by such Amendment Sections shall be reinstated. 

		
	7.
	The floor price table provided in Annex 1.24 shall include the additional dosage forms of *** and *** with the following prices: 

	
							
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	II.
	Except as expressly amended or otherwise modified hereby, all of the terms, conditions and provisions of the Agreement shall remain in full force and effect.

		
	III.
	The definitions used in this Amendment shall have the meaning given to them in the Agreement.

		
	IV.
	Section I.1 through I.6 of this Amendment enter into force retroactively on March 1, 2012 and the other provisions of this Amendment on the Date of Amendment.

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Exhibit 10.139.1

IN WITNESS WHEREOF, the undersigned, intending to be legally bound, have duly executed this Amendment as of the date first written above.

	
					
	ENDO PHARMACEUTICALS INC.
	 
	GRÜNENTHAL GMBH

	 
	 
	 
	 
	 

	By:
	/S/ Denise Hudson
	 
	By:
	/S/ Harald Stock

	Name:
	Denise Hudson
	 
	Name:
	Dr. Harald Stock

	Title:
	EVP, Enterprise Quality & Supply Chain

	 
	Title:
	Chairman & Chief Executive Officer

	 
	 
	 
	 
	 

	 
	 
	 
	By:
	/S/ Dieter Peters

	 
	 
	 
	Name:
	Dieter Peters

	 
	 
	 
	Title:
	Executive Vice President GPS

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